Prospectus
and Application of
...
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
EQUITY INDEX FUND
ALL AMERICA FUND
MID-CAP EQUITY INDEX FUND
AGGRESSIVE EQUITY FUND
BOND FUND
MONEY MARKET FUND
September 1, 2000
................................................................
Institutional
Funds Distributed by:
MUTUAL OF AMERICA
SECURITIES CORPORATION
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
320 Park Avenue, New York, New York 10022 1-800-914-8716
--------------------------------------------------------------------------------
Mutual of America Institutional Funds, Inc. is a mutual fund. It has these six
Funds:
o Equity Index Fund
o All America Fund
o Mid-Cap Equity Index Fund
o Aggressive Equity Fund
o Bond Fund
o Money Market Fund
Institutional investors, such as endowments, foundations and other
not-for-profit organizations, corporations and municipalities and other public
entities, may purchase shares of the Funds. An initial investment must be at
least $25,000, and each subsequent investment must be at least $5,000.
There is no sales charge for the purchase or sale of Fund shares. An investor
must send the payment price for shares purchased, and will receive redemption
proceeds for shares sold, by wire transfer of Federal Funds.
The Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the adequacy of this prospectus. Any representation to
the contrary is a criminal offense.
--------------------------------------------------------------------------------
Prospectus dated September 1, 2000
<PAGE>
--------------------------------------------------------------------------------
TABLE OF CONTENTS
--------------------------------------------------------------------------------
Page
----
Summary of How Our Funds Invest ................................... 1
Equity Index Fund .............................................. 1
All America Fund ............................................... 1
Mid-Cap Equity Index Fund ...................................... 2
Aggressive Equity Fund ......................................... 2
Bond Fund ...................................................... 3
Money Market Fund .............................................. 3
Annual Total Returns ........................................... 4
Average Annual Total Returns ................................... 5
Annual Fees and Expenses ....................................... 5
Comparison With Prior Performance of Similar Fund .............. 6
Management of the Funds ........................................... 7
The Adviser .................................................... 7
Subadvisers for a Portion of the All America Fund .............. 7
Portfolio Managers ............................................. 8
Details about How Our Funds Invest and Related Risks .............. 9
Investment Objectives and Strategies:
Equity Index Fund ............................................ 9
All America Fund ............................................. 10
Mid-Cap Equity Index Fund .................................... 11
Aggressive Equity Fund ....................................... 12
Bond Fund .................................................... 12
Money Market Fund ............................................ 13
Risks of Investing in a Stock Fund ............................. 14
Risks of Investing in a Bond Fund .............................. 14
Specific Investments or Strategies, and Related Risks .......... 15
Information on Fund Shares ........................................ 17
Pricing of Funds' Shares ....................................... 17
Purchases of Fund Shares ....................................... 17
How to Purchase Shares of the Funds ............................ 18
Redemptions of Fund Shares ..................................... 19
Exchanges of Fund Shares ....................................... 19
How to Place a Redemption or Exchange Order .................... 19
Shareholder Reports and Confirmation Statements ................ 20
Dividends, Capital Gains Distributions and Taxation of Funds ... 20
Shareholder Taxation ........................................... 21
Financial Highlights .............................................. 22
You May Obtain More Information .................................. Inside Back
Cover
-- An Application is included with this Prospectus --
<PAGE>
--------------------------------------------------------------------------------
SUMMARY OF HOW OUR FUNDS INVEST
--------------------------------------------------------------------------------
Each Fund of Mutual of America Institutional Funds, Inc. (the Investment
Company) has its own investment objective and tries to achieve its objective
with certain investment strategies. The Funds' different investment strategies
will affect the returns of the Funds and the risks of investing in each Fund.
A Fund may not achieve its objective. An investment in any of the Funds could
decline in value.
Equity Index Fund
--------------------------------------------------------------------------------
The Fund seeks investment results that correspond to the investment performance
of the Standard & Poor's Composite Index of 500 Stocks (the S&P 500(R) Index).
The Fund invests primarily in the 500 common stocks included in the S&P 500
Index to replicate, to the extent practicable, the weightings of such stocks in
the Index.
o Securities in the S&P 500 Index generally are issued by companies with
large market capitalizations. (Market capitalization refers to the
aggregate market value of the equity securities that a company has
issued.)
o Securities are included in the Index based on industry weightings and
the issuers' leading positions in those industries.
An investment in the Equity Index Fund is subject to market risk (the risk of
price changes due to changes in the securities markets or the economic
environment) and financial risk (credit risk based on the earning stability and
overall soundness of an issuer). Securities issued by companies with large
market capitalizations have more liquidity and generally have less price
volatility than securities of companies with smaller market capitalizations.
All America Fund
--------------------------------------------------------------------------------
The Fund attempts to outperform the S&P 500 Index, by investing in a diversified
portfolio of primarily common stocks.
o Approximately 60% of the Fund's assets are invested in the 500 common
stocks included in the S&P 500 Index to replicate, to the extent
practicable, the weightings of such stocks in the Index.
o Approximately 40% of the Fund's assets are invested by the Adviser and
two Subadvisers, with an objective of capital appreciation and, to a
lesser extent, current income. The Adviser invests approximately 10% of
the Fund's assets primarily in small capitalization value stocks and
approximately 10% of the Fund's assets primarily in large
capitalization value stocks; one Subadviser invests approximately 10%
of the Fund's assets primarily in small capitalization growth stocks;
and the other Subadviser invests approximately 10% of the Fund's assets
primarily in mid- and large capitalization growth stocks. (Market
capitalization refers to the aggregate market value of the equity
securities that a company has issued.)
Value stocks are stocks considered to be undervalued in the market place taking
into account the issuer's assets, earnings or growth potential. Growth stocks
are stocks considered to possess above average growth potential.
-1-
<PAGE>
An investment in the All America Fund is subject to market risk (the risk of
price changes due to changes in the securities markets or the economic
environment) and financial risk (credit risk based on the earning stability and
overall financial soundness of an issuer). Approximately 20% of the All America
Fund's assets are invested in small capitalization growth and value stocks, many
of which trade over-the-counter, and this portion of its portfolio will have
more market and financial risk than the portion invested in mid and large
capitalization stocks. Equity securities that trade over-the-counter may be more
difficult to sell than equity securities that trade on a national securities
exchange.
Mid-Cap Equity Index Fund
--------------------------------------------------------------------------------
The Fund seeks investment results that correspond to the investment performance
of the S&P MidCap 400 Index.
The Fund invests primarily in the 400 common stocks included in the S&P MidCap
400 Index to replicate, to the extent practicable, the weightings of such stocks
in the Index.
o Stocks included in the S&P MidCap 400 Index are issued by companies
with mid-sized market capitalizations. (Market capitalization refers to
the aggregate market value of the equity securities that a company has
issued.)
o Currently, the average weighted market capitalization of companies in
the Index is over $4 billion, although companies in the Index may have
significant smaller or larger market capitalizations.
An investment in the Mid-Cap Equity Index Fund is subject to market risk (the
risk of price changes due to changes in the securities markets or the economic
environment) and financial risk (credit risk based on the earning stability and
overall financial soundness of an issuer). Securities issued by companies with
mid-sized market capitalizations generally trade in lower volumes and are
subject to greater, less predictable price changes than the securities of
companies with larger market capitalizations.
Aggressive Equity Fund
--------------------------------------------------------------------------------
The Fund seeks capital appreciation.
The Fund invests primarily in growth and value common stocks to seek its
investment objectives.
o The Fund invests in growth stock issued by companies the Adviser
believes to possess above- average growth potential.
o The Fund invests in value stocks issued by companies the Adviser
believes to be undervalued in the marketplace in relation to factors
such as the company's assets, earnings, or growth potential.
An investment in the Aggressive Equity Fund is subject to market risk (the risk
of price changes due to changes in the securities markets or the economic
environment) and financial risk (credit risk based on the earning stability and
overall financial soundness of an issuer). The Aggressive Equity Fund has more
market risk and financial risk than our other stock funds, because it generally
invests in growth and value equity securities that often trade over-the-counter
and are issued by companies with small market capitalizations. (Market
capitalization refers to the aggregate market value of the equity securities
that a company has issued.)
-2-
<PAGE>
Bond Fund
--------------------------------------------------------------------------------
The Fund seeks current income, with preservation of shareholders' capital a
secondary objective.
The Fund invests primarily in publicly-traded, investment grade debt securities.
The Fund's securities holdings will have an average maturity that varies
according to the Adviser's view of current market conditions.
o The Fund invests in corporate, U.S. Government securities and U.S.
Government agency securities, such as bonds, notes, debentures, zero
coupon securities and mortgage-backed securities.
o The Fund generally will invest a significant portion of its assets in
U.S. Government agency mortgage-backed securities, U.S. Treasury
Securities, and corporate obligations rated BBB.
o The Adviser evaluates individual securities and selects securities
based on interest income to be generated and generally does not time
purchases and sales based on interest rate predictions.
An investment in the Bond Fund is subject to market risk (the risk of price
changes due to changes in the securities markets or the economic environment),
which includes changes in the overall level of interest rates. Interest rate
increases usually cause a decline in the value of debt securities held by the
Fund. Generally, the market risk for the Bond Fund increases as the average
maturity of its securities holdings lengthens. Lower rated investment grade debt
securities are subject to a greater market risk than higher rated debt
securities, with adverse economic conditions or changing circumstances more
likely to lead to a weakened capacity to pay interest and repay principal for
debt in this category than in higher-rated categories. Mortgage-backed
securities or certificates are subject to prepayment risk (shortening the term
to maturity) when interest rates fall and to extension risk (lengthening the
term to maturity) when interest rates rise.
An investment in the Bond Fund also involves financial or credit risk, which
refers to the ability of the issuer of a security to pay principal and interest
as it becomes due. Securities rated BBB or lower have more credit risk than
higher-rated securities.
Money Market Fund
--------------------------------------------------------------------------------
The Fund seeks current income and preservation of principal by investing in
money market instruments that meet certain requirements for liquidity,
investment quality and stability of capital.
o The average maturity of the instruments the Fund holds will be
short-term -- 90 days or less.
o The Fund will purchase only securities that are rated in one of the two
highest rating categories by at least two rating agencies, with most
securities rated in the highest category.
o The Fund will diversify its investments, limiting holdings in the
securities of any one issuer (except the U.S. Government or its
agencies) to 5% of assets.
The Fund generally will invest primarily in commercial paper and U.S. Government
agency securities.
The Money Market Fund pays dividends of income earned on a semi-annual basis,
rather than declaring dividends daily to maintain a stable net asset value of
$1.00.
o The Fund's net asset value will generally rise during six months as the
Fund earns income, before dividends are paid.
o The Fund's net asset value will decline when the Fund declares
dividends and pays income to shareholders at the end of June and
December each year.
A shareholder's investment in the Fund is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency.
An investment in the Money Market Fund has a small amount of market risk (the
risk of price changes due to changes in the securities markets or the economic
environment) and a small amount of financial risk (credit risk based on the
earning stability and overall financial soundness of an issuer), because the
Fund holds high quality securities with short terms to maturity. The Fund has a
high level of current income volatility, because its securities holdings are
short term and it reinvests at current interest rates as its holdings mature.
-3-
<PAGE>
Annual Total Returns
--------------------------------------------------------------------------------
The bar charts below show the annual return of each Fund for the life of the
Fund. The Mid-Cap Equity Index Fund and Aggressive Equity Fund are not included
because they had not commenced operations as of the date of this prospectus. A
chart indicates the risks of investing in a particular Fund by showing changes
in the Fund's performance from year-to-year during the period, but a Fund's past
performance does not necessarily indicate how it will perform in the future.
Next to each chart is the Fund's highest total return for any calendar quarter
during the period covered by the chart, called the best quarter and the Fund's
lowest total return for any calendar quarter during the period covered, called
the worst quarter. These returns are an indication of the volatility of a Fund's
total returns.
[The following table represents a bar chart in the printed material.]
Equity Index Fund:
1999 The Equity Index Fund began operations on May 3,
---- 1999.
9.0%
Best quarter: 13.9% during fourth quarter 1999
Worst quarter: (6.3)% during third quarter 1999
[The following table represents a bar chart in the printed material.]
All America Fund:
1997 1998 1999 The All America Fund began operations on May 1, 1996.
---- ---- ----
26% 21% 26% Best quarter: 22.0% during fourth quarter 1998
Worst quarter: (13.1)% during third quarter 1998
[The following table represents a bar chart in the printed material.]
Bond Fund:
1997 1998 1999 The Bond Fund began operations on May 1, 1996.
---- ---- ----
8.9% 8.3% -3.5% Best quarter: 4.8% during third quarter 1998
Worst quarter: (1.2)% during first quarter 1999
[The following table represents a bar chart in the printed material.]
Money Market Fund:
1998 1999 The Money Market Fund began operations on May 1,
---- ---- 1997.
5.3% 4.9%
Best quarter: 1.4% during fourth quarter 1999
Worst quarter: 1.1% during first quarter 1999
-4-
<PAGE>
Average Annual Total Returns (for periods ended December 31, 1999)
--------------------------------------------------------------------------------
The table below shows the average annual total returns of each Fund for the past
one year period and the return for the period of the Fund's operations, except
that the Mid-Cap Equity Index Fund and Aggressive Equity Fund are not included
because they began operations on September 1, 2000. The table indicates the
risks of investing in the Funds by comparing, for the same periods, each Fund's
returns to those of a broad-based, unmanaged index, or to Treasury Bills for
money market investments. A Fund's past performance does not necessarily
indicate how it will perform in the future.
<TABLE>
<CAPTION>
Past For Life
Fund/Comparative Index(es) One Year of Fund*
===============================================================================================
<S> <C> <C>
All America Fund ..................................................... 26.0% 22.8%*
S&P 500 Index (1) .................................................. 21.0% 26.8%
===============================================================================================
Equity Index Fund .................................................... N/A 9.0%
S&P 500 Index (1) .................................................. 21.0% 9.0%
===============================================================================================
Bond Fund ............................................................ (3.5)% 5.0%
Lehman Brothers Gov't./Corp. Bond Index (2) ........................ (2.2)% 6.2%
===============================================================================================
Money Market Fund .................................................... 4.9% 5.1%
90-day Treasury Bill Rate .......................................... 4.7% 5.0%
7-day current yield for period ended 12/28/99 was 5.63%
7-day effective yield (reflecting the compounding of interest)
for period ended 12/28/99 was 5.79%
===============================================================================================
</TABLE>
* The All America and Bond Funds began operations on May 1, 1996; the Money
Market Fund began operations on May 1, 1997 and the Equity Index Fund began
operations on May 3, 1999.
(1) The S&P 500(R)is the Standard & Poor's Composite Index of 500 Stocks, a
market value-weighted index of the common stock prices of companies
included in the S&P 500.
(2) The Lehman Brothers Government/Corporate Bond Index is an index of U.S.
Government and corporate bond prices of investment grade bonds with
maturities greater than one year and face values over $1 million.
Annual Fees and Expenses
--------------------------------------------------------------------------------
This table describes the fees and expenses that you may pay if you buy and hold
shares of the Funds. Annual operating expenses are shown as a percentage of
average net assets.
<TABLE>
<CAPTION>
Mid-Cap
Equity All Equity Aggressive Money
Index America Index Equity Bond Market
Fund Fund Fund Fund Fund Fund
------- ------- ------- ---------- --------- ------
<S> <C> <C> <C> <C> <C> <C>
Shareholder Fees .................... none none none none none none
Annual Fund Operating
Expenses (expenses that are
deducted from fund assets)
Management Fees ..................... .13% .50% .13% .85% .45% .20%
Other Expenses* ..................... .50 .35 .48 .51 .48 .82
---- ---- ---- ----- ----- -----
Total Annual Fund
Operating Expenses* ............... .63% .85% .61% 1.36% .93% 1.02%
Expense Reimbursement** ............. (.31) (.01) (.28) (.26) (.23) (.62)
---- ---- ---- ----- ----- -----
Net Expenses ........................ .32% .84% .33% 1.10% .70% .40%
==== ==== ==== ===== ===== =====
</TABLE>
* The Other Expenses and Total Annual Fund Operating Expenses of the Mid-Cap
Equity Index Fund and Aggressive Equity Fund, which began operations on
September 1, 2000, have been estimated by the Adviser and annualized.
-5-
<PAGE>
** The Adviser has contractually agreed for calendar year 2000 to limit each
Fund's total expenses (excluding taxes, brokerage commissions and
extraordinary expenses) to an annual rate of .325% of the net assets of
each of the Equity Index and Mid-Cap Equity Index Funds, .85% of net
assets of the All America Fund, 1.10% of net assets of the Aggressive
Equity Fund, .70% of net assets of the Bond Fund and .40% of net assets of
the Money Market Fund. The Adviser's obligation will continue for each
following calendar year unless the Adviser gives notice of termination to
the Investment Company at least two weeks before the next year begins.
Example:
This Example is intended to help you compare the cost of investing in the Funds
with the cost of investing in other mutual funds. The Example assumes for each
Fund that:
o you make an investment of $10,000,
o you have a 5% annual return on your investment,
o all dividends and distributions are reinvested,
o Fund operating expenses during the periods shown are limited by the
Adviser to the contractual limits only during Year 1, and
o you redeem all of your shares at the end of the periods shown.
Although your costs may be higher or lower, your cost based on these assumptions
would be:
<TABLE>
<CAPTION>
1 Year 3 Years(1) 5 Years(1) 10 Years(1)
------ --------- --------- ----------
<S> <C> <C> <C> <C>
Equity Index Fund ....................... $ 33 $105 $184 $ 419
All America Fund ........................ $ 87 $275 $481 $1,096
Mid-Cap Equity Index Fund ............... $ 34 $197 N/A(2) N/A(2)
Aggressive Equity Fund .................. $114 $439 N/A(2) N/A(2)
Bond Fund ............................... $ 72 $226 $396 $ 902
Money Market Fund ....................... $ 41 $129 $226 $ 516
</TABLE>
(1) The expenses used in the Example, other than for 1 Year, are those shown
in the table above without reimbursement of expenses by the Adviser.
(2) Because the Mid-Cap Equity Index and Aggressive Equity Funds are new
funds, the example covers only the 1 Year and 3 Year periods.
Comparison With Prior Performance of Similar Fund
--------------------------------------------------------------------------------
The Investment Company is providing the following comparative information for
the Aggressive Equity Fund, an actively managed fund that began operations on
September 1, 2000.
The investment policies, objectives and strategies of the Investment Company's
Aggressive Equity Fund are substantially identical to the Aggressive Equity Fund
of Mutual of America Investment Corporation (called the VP Aggressive Equity
Fund). In addition, the Adviser and the portfolio manager is the same for the
Aggressive Equity Fund and the VP Aggressive Equity Fund.
Shares of the VP Aggressive Equity Fund are sold only to separate accounts of
Mutual of America Life Insurance Company and its indirect, wholly-owned
subsidiary, The American Life Insurance Company of New York, as a funding medium
for variable accumulation annuity contracts and variable life insurance policies
issued by these companies.
Below are average annual total returns for the VP Aggressive Equity Fund, based
on information about the VP Aggressive Equity Fund that the Adviser has
provided. Past performance of the VP Aggressive Equity Fund is not predictive of
future performance. Investors should not consider performance data for the VP
Aggressive Equity Fund as an indication of the future performance of the
Aggressive Equity Fund offered under this Prospectus.
-6-
<PAGE>
Average Annual Total Returns of the VP Aggressive Equity Fund
for Periods ended December 31, 1999
<TABLE>
<CAPTION>
Since Inception of
One Year Five Years Ten Years Institutional Fund (1)
-------- ---------- --------- ----------------------
<S> <C> <C>
VP Aggressive Equity Fund .............. 43.3% 23.7% N/A N/A
</TABLE>
(1) The Investment Company's Aggressive Equity Fund commenced operations on
September 1, 2000.
Results for the VP Aggressive Equity Fund are different than the results that
would have been obtained for the Investment Company Aggressive Equity Fund.
o Use of the Investment Company Aggressive Equity Fund's expenses for the
VP Aggressive Equity Fund would have lowered performance results. The
total operating expenses during the periods shown above as a percentage
of net average net assets were .85% for the VP Aggressive Equity Fund,
while the annual total operating expenses (after reimbursement) of the
Aggressive Equity Fund of the Investment Company would have been 1.10%
of average net assets.
o At June 30, 2000, VP Aggressive Equity Fund had net assets of $343
million. The Investment Company Aggressive Equity Fund commenced
operations on September 1, 2000 with assets of $15 million.
--------------------------------------------------------------------------------
MANAGEMENT OF THE FUNDS
--------------------------------------------------------------------------------
The Adviser
--------------------------------------------------------------------------------
Mutual of America Capital Management Corporation, 320 Park Avenue, New York, New
York 10022 (the Adviser or Capital Management) is the investment adviser for the
Funds of the Investment Company. The Adviser had total assets under management
of approximately $8.2 billion at June 30, 2000, including $2.8 billion for the
Mutual of America Investment Corporation. As Adviser, Capital Management:
o places orders for the purchase and sale of securities,
o engages in securities research,
o makes recommendations to and reports to the Investment Company's Board
of Directors,
o provides certain administrative services for the Funds, and
o provides the office space, facilities, equipment, material and
personnel necessary to perform its duties.
For its investment management services, the Adviser receives compensation from
each Fund at an annual rate of the Fund's net assets, calculated as a daily
charge. These annual rates, which are applicable during 2000, are:
o Equity Index Fund -- .125% o Aggressive Equity Fund -- .85%
o All America Fund -- .50% o Bond Fund -- .45%
o Mid-Cap Equity Index Fund-- .125% o Money Market Fund -- .20%
Subadvisers for a Portion of the All America Fund
--------------------------------------------------------------------------------
The Adviser has delegated its investment advisory responsibilities for a portion
of the All America Fund to two Subadvisers. Each Subadviser provides investment
advice for approximately 10% of the assets of the All America Fund. The Adviser
pays the Subadvisers for their advisory services to the All America Fund.
o Fred Alger Management, Inc., One World Trade Center, Suite 9333, New
York, New York 10048, is a small capitalization growth adviser for its
portion of the All America Fund. It provides investment management
services to institutional, corporate and individual clients, including
other registered management investment companies. At June 30, 2000,
Fred Alger Management had assets under management of approximately
$21.2 billion.
-7-
<PAGE>
o Oak Associates, Ltd., 3875 Embassy Parkway, Suite 250, Akron, Ohio
44333, is a mid- and large capitalization growth adviser for its
portion of the All America Fund. It provides investment management
services for individual and corporate clients, primarily in connection
with retirement plans. At June 30, 2000, Oak Associates had assets
under management of approximately $29.3 billion.
Portfolio Managers
--------------------------------------------------------------------------------
The person(s) primarily responsible for the day-to-day management of the Funds'
investment portfolios are listed below. No information is given for the Money
Market Fund because of the type of investments it makes. No information is given
for the Equity Index Fund, the Mid-Cap Equity Index Fund or the Indexed Assets
of the All America Fund, because the investment objective for each is to
replicate the performance of an index.
All America Fund
Thomas P. Larsen, Executive Vice President of the Adviser, is responsible for
managing the Adviser's portions of the actively managed assets of the Fund. Mr.
Larsen joined the Adviser in June 1998, after serving as Senior Vice President
of Desai Capital Management, where he had been since 1991. He has almost 30
years of experience in selecting securities for and managing equity portfolios.
David D. Alger and Bonnie Smithwick are primarily responsible for the day-to-day
management of the Fred Alger Management portion of the Fund. Mr. Alger,
President and Chief Executive Officer of Fred Alger Management, has been
employed by Fred Alger Management since 1971 and has been President since 1995,
and he serves as portfolio manager for other mutual funds and investment
accounts managed by Fred Alger Management. Ms. Smithwick has been employed by
Fred Alger Management since June 2000 as a Vice President and portfolio manager.
Prior thereto, she served as a Director of Global Custody Sales for Citibank,
N.A. from 1993 to 1996 and was a Senior Vice President and Financial Analyst for
Bramwell Capital Management from 1996 to June 2000.
James D. Oelschlager is the portfolio manager of the Oak Associates portion of
the Fund. Since establishing Oak Associates in 1985, Mr. Oelschlager has served
as its portfolio manager. Previously, he served as the Assistant Treasurer of
Firestone Tire & Rubber Company, where he was directly responsible for the
management of the company's pension assets. Mr. Oelschlager is assisted with
portfolio management responsibilities by Donna Barton, trading, Margaret
Ballinger, new accounts, and Doug MacKay, equity research. These individuals
have combined experience of over seventy years in the investment business and
play a key role in the day-to-day management of the firm's portfolios.
Aggressive Equity Fund
Thomas P. Larsen, Executive Vice President of the Adviser, has responsibility
for managing the Fund. Mr. Larsen, who has almost 30 years of experience in
selecting securities for and managing equity portfolios, joined the Adviser in
June 1998 and before that was Senior Vice President of Desai Capital Management,
where he had been since 1991.
Bond Fund
Andrew L. Heiskell, Executive Vice President of the Adviser, has responsibility
for setting the fixed income investment strategy and overseeing the day-to-day
operations of the Bond Fund. Mr. Heiskell has been the portfolio manager for the
Bond Fund of the Mutual of America Investment Corporation since February 1991
and of its Mid-Term and Short-Term Bond Funds since their inceptions in 1993. He
has more than 30 years of experience in selecting securities for and managing
fixed-income portfolios.
-8-
<PAGE>
--------------------------------------------------------------------------------
DETAILS ABOUT HOW OUR FUNDS INVEST AND RELATED RISKS
--------------------------------------------------------------------------------
Investment Objectives and Strategies
--------------------------------------------------------------------------------
Equity Index Fund: The investment objective of the Equity Index Fund is to
provide investment results that correspond to the
performance of the S&P 500 Index.
The Fund seeks to achieve its objective primarily by:
o Purchasing shares of the 500 common stocks that are included in the S&P
500 Index.
* Stocks are selected in the order of their weightings in the S&P 500
Index, beginning with the heaviest weighted stocks.
* The percentage of the Fund's assets invested in each of the selected
stocks will be approximately the same as the percentage the stock
represents in the S&P 500 Index.
* The Fund attempts to be fully invested at all times, and at least
80% of the Fund's net assets will be invested in the stocks that
comprise the S&P 500 Index.
o Purchasing futures contracts on the S&P 500 Index and options on
futures contracts on the S&P 500 Index to invest cash prior to the
purchase of common stocks, in an attempt to have the Fund's performance
more closely correlate with the performance of the S&P 500 Index.
The Adviser uses a computer program to determine which stocks are to be
purchased or sold to copy the S&P 500 Index. From time to time, the Fund makes
adjustments in its portfolio (rebalances) because of changes in the composition
of the S&P 500 Index or in the valuations of the stocks within the Index
relative to other stocks within the Index.
The Fund's investment performance may not precisely duplicate the performance of
the S&P 500 Index, due to cash flows in and out of the Fund and investment
timing considerations. The Fund also pays investment advisory expenses that are
not applicable to an unmanaged index such as the S&P 500 Index.
The Fund's ability to duplicate the performance of the S&P 500 Index depends to
some extent on the size of the Fund's portfolio. Mutual of America Life
Insurance Company (Mutual of America), the indirect parent corporation of the
Adviser, invested a total of $25 million in the Equity Index Fund when the Fund
began operations. Mutual of America currently intends to maintain an investment
in the Fund so that the Fund's assets are at least $25 million at any time. When
Mutual of America redeems all or any portion of its investment in the Fund, it
is anticipated that the Fund will sell portfolio securities to meet the
redemption request. As a consequence, the Fund may realize investment gains that
will be included in the next annual distribution to shareholders. See
"Shareholder Taxation".
--------------------------------------------------------------------------------
Standard & Poor's(R) (S&P(R)) does not sponsor, endorse, sell or promote
the Equity Index Fund, All America Fund or Mid-Cap Equity Index Fund.
"Standard & Poor's," "S&P," the "S&P 500 Index" and the "S&P MidCap 400
Index" are trademarks of The McGraw-Hill Companies, Inc. and have been
licensed for use by the Investment Company. Standard & Poor's has no
obligation or liability for the sale or operation of the Equity Index Fund,
All America Fund or Mid-Cap Equity Index Fund and makes no representation
as to the advisability of investing in the Funds.
--------------------------------------------------------------------------------
-9-
<PAGE>
All America Fund: The investment objective of the All America Fund is to
outperform the S&P 500 Index by investing in a diversified
portfolio of primarily common stocks.
At least 65% of the All America Fund's total assets will be invested in equity
securities under normal market conditions. The issuers of at least 80% of the
Fund's total assets will be United States corporations or entities.
Indexed Assets. The Fund invests approximately 60% of its assets to provide
investment results that correspond to the performance of the S&P 500 Index. This
portion of the All America Fund is called the Indexed Assets. The Fund invests
Indexed Assets in the 500 common stocks included in the S&P 500 Index and in
futures contracts on the S&P 500 Index. The Fund attempts to match the
weightings of stocks in the Indexed Assets with the weightings of those stocks
in the S&P 500 Index, and it periodically rebalances the Indexed Assets to
maintain those weightings.
The Fund's ability to duplicate the performance of the S&P 500 Index depends to
some extent on the size of the Fund's portfolio. Mutual of America's investment
in the Fund was approximately $40 million as of the date of this prospectus.
Mutual of America currently intends to maintain an investment in the Fund so
that the Fund's assets are at least $25 million at any time. When Mutual of
America redeems all or any portion of its investment in the Fund, it is
anticipated that the Fund will sell portfolio securities to meet the redemption
request. As a consequence, the Fund may realize investment gains that will be
included in the next annual distribution to shareholders. See "Shareholder
Taxation".
Active Assets. The Fund invests approximately 40% of its assets to seek to
achieve a high level of total return, through both appreciation of capital and,
to a lesser extent, current income, by means of a diversified portfolio of
primarily common stocks with a broad exposure to the market. The Adviser and two
Subadvisers actively manage this portion of the All America Fund, which is
called the Active Assets.
If the Adviser or either of the Subadvisers actively trades Fund securities, the
Fund will incur higher transaction costs, which may reduce investment
performance. In addition, the Fund may realize capital gains that are
distributed to shareholders and are subject to taxation.
The Fund tries to maintain, to the extent possible, approximately equal amounts
in each segment of the Active Assets. The Adviser periodically rebalances assets
in the All America Fund to retain the approximate 60%/40% relationship between
Indexed Assets and Active Assets, based on then current market values.
Adviser--Small Capitalization Value Stocks. The Adviser generally invests in
stocks that it considers undervalued and with the potential for above average
investment returns, issued by companies with small market capitalizations. Some
of the companies whose stocks the Adviser selects may have limited Wall Street
coverage and low institutional ownership, which may make the stocks more
difficult to sell in certain market conditions.
o The Adviser seeks securities with a depressed valuation compared to
their previous valuations or compared to a universe of peer companies.
The Adviser determines depressed valuation primarily through
consideration of earnings, cash flow or net equity.
o Issuers must have executive management that the Adviser considers
strong and capable of executing a clear business strategy for the
company.
The Adviser at times may actively trade the securities in its portion of the All
America Fund, depending on market conditions.
The Adviser--Large Capitalization Value Stocks. The Adviser invests this portion
of Active Assets in stocks it considers to be of high quality with lower than
average price volatility and low price/earning ratios, issued by companies with
large market capitalizations. Companies generally will have:
o below market debt levels,
o earnings growth of 10% or more,
o current yield greater than the average of the S&P 500, and
o market capitalization not less than that of any company included in the
S&P Barra Value Index, updated quarterly.
The Adviser at times may actively trade the securities in its portion of the All
America Fund, depending on market conditions.
-10-
<PAGE>
Fred Alger Management, Inc.--Small Capitalization Growth Stocks. This Subadviser
invests in stocks that it considers to be fundamentally sound with the potential
for strong growth and for earnings in excess of market expectations, issued by
companies with small market capitalizations.
o The securities of these companies often are traded in the
over-the-counter market.
o Except during temporary defensive periods (when abnormal market
conditions are occurring) at least 65% of the assets will be invested
in equity securities of companies that, at the time of the Fund's
purchase, have total market capitalization within the range of
capitalization of the companies included in the Russell 2000 Growth
Index or the S&P SmallCap 600 Index(R), updated quarterly. During
temporary defensive periods, Fred Alger Management may not achieve the
investment objective for its portion of the All America Fund.
Fred Alger Management uses a bottom-up approach in selecting stocks for its
portion of the Fund, evaluating each issuer of securities before making an
investment. Through in-house research by analysts who are organized according to
industry groups, it develops stock selection recommendations that are presented
to executive officers and portfolio managers for evaluation and discussion. The
portfolio manager then determines the individual stocks that are appropriate for
purchase. Fred Alger Management actively trades the securities in its portion of
the All America Fund, and its portfolio turnover rate generally will be higher
than the portfolio turnover rate for the other portions of the Active Assets.
Oak Associates, Ltd.--Mid- and Large Capitalization Growth Stocks. This
Subadviser invests in mid- and large-sized capitalization stocks, which often
have low current income and the potential for significant growth. Its approach
is to:
o monitor 400 stocks,
o at any one time to invest in approximately 15-25 common stocks without
regard for market industry weighting, and
o usually hold securities that have appreciated in value, rather than
selling them to realize capital gains.
Oak Associates identifies industries it believes are attractive from a long-term
perspective, based on the direction of interest rates, the overall stock market
environment, the inflation rate and evolving relationships of economic sectors.
In selecting individual stocks, Oak Associates evaluates companies' growth
prospects and utilizes relative valuation measures such as price to earnings
ratio as compared to long-term growth rate, historical levels and the S&P 500
Index.
Mid-Cap Equity Index Fund: The investment objective of the Mid-Cap Equity Index
Fund is to provide investment results that correspond
to the performance of the S&P MidCap 400 Index.
The Fund seeks to achieve its objective primarily by:
o Purchasing shares of the 400 common stocks that are part of the S&P
MidCap 400 Index.
* Stocks are selected in the order of their weightings in the S&P
MidCap 400 Index, beginning with the heaviest weighted stocks.
* The percentage of the Fund's assets invested in each of the selected
stocks will be approximately the same as the percentage the stock
represents in the S&P MidCap 400 Index.
* The Fund attempts to be fully invested at all times, and at least
80% of the Fund's net assets will be invested in the stocks that
comprise the S&P MidCap 400 Index.
o Purchasing futures contracts on the S&P MidCap 400 Index and options on
futures contracts on the S&P 400 Index to invest cash prior to the
purchase of common stocks, in an attempt to have the Fund's performance
more closely correlate with the performance of the S&P MidCap 400
Index.
The Adviser uses a computer program to determine which stocks are to be
purchased or sold to copy the S&P MidCap 400 Index. From time to time, the Fund
makes adjustments in its portfolio (rebalances) because of changes in the
composition of the S&P MidCap 400 Index or in the valuations of the stock within
the Index relative to other stocks within the Index.
-11-
<PAGE>
There is a risk that the Fund's investment performance may not precisely
duplicate the performance of the S&P MidCap 400 Index, due to cash flows in and
out of the Fund and investment timing considerations. The Fund also pays
investment advisory expenses that are not applicable to an unmanaged index such
as the S&P MidCap 400 Index.
The Fund's ability to duplicate the performance of the S&P MidCap 400 Index
depends to some extent on the size of the Fund's portfolio. Mutual of America
invested $20 million in the Mid-Cap Equity Index Fund when the Fund began
operations and intends to maintain an investment in the Fund so that the Fund's
assets are at least $20 million at any time. When Mutual of America redeems all
or any portion of its investment in the Fund, it is anticipated that the Fund
will sell portfolio securities to meet the redemption request. As a consequence,
the Fund may realize investment gains that will be included in the next annual
distribution to shareholders. See "Shareholder Taxation".
Aggressive Equity Fund: The investment objective of the Aggressive Fund is
capital appreciation.
The Fund invests in growth stocks and value stocks, and the Adviser determines
the percentage of the Fund's assets invested in growth stocks or value stocks at
any one time. At least 85% of the Aggressive Equity Fund's total assets will be
invested in equity securities under normal market conditions.
o Growth stocks are stocks that the Adviser considers to have
above-average growth potential, based on earnings, sales or prospective
economic or political changes.
o Value stock are stock that the Adviser views as undervalued, based on
the issuer's assets, earnings or growth potential.
The Adviser uses a "bottom-up" approach in selecting stocks for the Fund,
evaluating an issuer of securities before purchasing those securities for the
Fund, without taking into account possible changes in the general economy. The
Adviser continually reviews the universe of companies with small market
capitalization to identify securities with growth or value characteristics that
meet its requirements. In evaluating an individual security, the Adviser
determines the security's valuation relative to other securities in the same
sector or industry.
Some of the stocks the Fund purchases have small market capitalizations and may
be traded-over-the counter instead of on an exchange. During different market
cycles, either growth or value stocks may be out of favor with investors and may
have more market risk (price volatility) than larger capitalization stocks.
Bond Fund: The primary investment objective of the Bond Fund is to provide a
high level of current income. A secondary objective is preservation
of shareholders' capital.
The average maturity of the debt securities held by the Bond Fund will vary
according to market conditions and the stage of the interest rate cycle. The
Fund's Adviser anticipates that the average maturity of the Fund's securities
holdings will be between five and ten years.
The Fund invests at least 80% of its assets in investment grade debt obligations
issued by U.S. corporations or issued by the U.S. Government or its agencies.
o The Fund invests in various types of debt securities, including bonds,
mortgage-backed securities, zero coupon securities and asset-backed
securities, with ratings that range from AAA to BBB at the time of
purchase.
o The percentage of the Fund's portfolio invested in particular types of
securities will vary, depending on market conditions and the Adviser's
assessment of the income and returns available from corporate
securities in relation to the risks of investing in these securities.
o At December 31, 1999, the Bond Fund had invested as a percentage of net
assets approximately 19% in U.S. Treasury Securities and 6% in U.S.
Government agency mortgage-backed securities. At that date, 35% of the
Fund's net assets were invested in obligations rated AAA, 41.6% of its
net assets were invested in corporate obligations rated BBB and 7.7% of
its net assets were invested in corporate obligations rated below
investment grade. At June 30, 2000, the Bond Fund had invested as a
percentage of net assets approximately 15% in U.S. Treasury
-12-
<PAGE>
Securities and 5% in U.S. Government agency mortgage-backed securities.
At that date, 27% of the Fund's net assets were invested in obligations
rated AAA, 44% were invested in corporate obligations rated BBB and 12%
were invested in corporate obligations rated below investment grade. At
December 31, 1999 and June 30, 2000, the Fund's non-investment grade
holdings were due to ratings downgrades subsequent to purchase by the
Fund. The Fund does not purchase securities that are rated below
investment grade but holds securities that have been downgraded when
the Adviser considers the securities to be undervalued due to factors
such as lack of liquidity or uncertainty in the marketplace.
The Adviser uses a bottom-up approach in selecting debt securities for the Fund.
This means that the Adviser evaluates each issuer of securities before making an
investment, rather than selecting securities or industries based on possible
changes in the economy. The Adviser's approach generally is to purchase
securities for income. In selecting an individual security, it reviews
historical financial measures and considers the price and yield relationship to
other securities to determine a proper relative value for the security.
The Fund generally does not purchase and sell securities in anticipation of
interest rate changes in the economy. The Adviser may sell a security that it
considers to have become overvalued relative to alternative investments, and
reinvest in an alternative security.
Money Market Fund: The investment objective of the Fund is to realize high
current income to the extent consistent with the maintenance
of liquidity, investment quality and stability of capital.
In selecting specific investments for the Fund, the Adviser seeks securities or
instruments with the highest yield or income that meet the following
requirements.
o The Fund invests only in money market instruments and other short-term
debt securities, including commercial paper issued by U.S. corporations
and in U.S. Government and U.S. Government agency securities. At
December 31, 1999 and June 30, 2000, 100% of the Fund's assets were
invested in commercial paper, a portion of which were also U.S.
Government agency securities.
o All of the securities the Fund purchases have a rating in one of the
two highest rating categories from at least two nationally recognized
rating agencies, and substantially all (at least 95%) have a rating in
the highest category from at least two of these rating agencies.
o At the time of purchase, a security must mature in 13 months or less
(or 25 months for U.S. Government securities). The dollar-weighted
average maturity of the Fund's securities must be 90 days or less.
o The Fund will not invest more than 5% of its total assets in the
securities of any one issuer, other than U.S. Government or agency
securities.
The Fund does not maintain a stable net asset value. Income the Fund earns on
its portfolio holdings increases the Fund's net asset value per share until the
Fund declares a dividend. The Fund declares a dividend of net investment income
at least semi-annually, and the Fund's net asset value per share declines as a
result of the distribution to its shareholders.
The Fund uses the amortized cost method of valuing securities that have a
remaining term to maturity of 60 days or less. Because the Fund uses market
value for securities that mature in more than 60 days, the Fund does not invest
more than 20% of its assets in these securities, to limit the possibility of a
decline in the Fund's net asset value.
An investment in the Fund has little market or financial risk but a relatively
high level of current income volatility, because its portfolio holdings are high
quality instruments that have a short time to maturity. Investments in the Money
Market Fund are not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other U.S. Government agency.
-13-
<PAGE>
Risks of Investing in a Stock Fund
--------------------------------------------------------------------------------
When you invest in a stock fund, you should consider that:
o The fund is subject to market risk -- the value of your investment will
go up or down, depending on movements in the stock markets. As a
result, you may lose money from your investment, or your investment may
increase in value.
o The investment results for a particular Fund may be better or worse
than the results for the stock markets taken as a whole, depending on
the type of securities in which the Fund invests.
o The investment results for a particular Fund may be better or worse
than the results of other funds that invest in the same types of
securities. In other words, stock selection by a Fund's investment
adviser(s) will impact the Fund's performance.
o The prices and investment performance of stocks that are issued by
companies with smaller market capitalizations may fluctuate more than
the prices and investment performance of stocks that are issued by
companies with larger market capitalizations.
o A Fund may have more difficulty selling a small capitalization stock or
any stock that trades "over-the-counter", as compared to larger
capitalization stocks or stocks that trade on a national or regional
stock exchange.
o Value stocks and growth stocks usually have different investment
results, and either investment style may become out of favor with stock
investors at a given time.
o American Depositary Receipts (ADRs), which are dollar-denominated and
represent the deposit with U.S. banks of the securities of foreign
issuers, are subject to the risks of changes in currency or exchange
rates (which impact the value of the issuer) and the difficulty of
assessing economic or political trends in foreign countries.
Risks of Investing in a Bond Fund
--------------------------------------------------------------------------------
When you invest in a bond fund, you should consider that:
o The fund has market risk -- the value of your investment will go up or
down depending on movements in the bond markets. As a result, you may
lose money from your investment, or your investment may increase in
value.
o The investment results for a particular Fund may be better or worse
than the results for the comparable bond market taken as a whole,
depending on the type of debt securities in which the Fund invests.
o The investment results for a particular Fund may be better or worse
than the results of other funds that invest in the same types of
securities. In other words, security selection by a Fund's investment
adviser will impact the Fund's performance.
o Changes in prevailing interest rates usually will impact the value of
debt securities. The longer the time period before the security matures
(or is expected to be redeemed), the more impact interest rate changes
will have on the price of the bond. When interest rates rise, the
prices of outstanding debt securities tend to fall. When interest rates
fall, the prices of outstanding debt securities tend to rise.
o Mortgage-backed securities or certificates are subject to prepayment or
extension risk when interest rates change. When interest rates fall,
the underlying mortgages may be prepaid at a faster rate than
previously assumed in pricing the mortgage-backed security, which would
shorten the period to maturity. When interest rates rise, the
underlying mortgages may be prepaid at a slower rate than previously
assumed, which would lengthen the period to maturity.
o In periods of economic uncertainty, investors may favor U.S. government
debt securities over debt securities of corporate issuers, in which
case the value of corporate debt securities would decline in relation
to the value of U.S. government debt securities.
-14-
<PAGE>
o Zero coupon securities and discount notes do not pay interest, and they
may fluctuate more in market value and be more difficult for a Fund to
resell during periods of interest rate changes than comparable
securities that pay interest in cash at regular intervals. In addition,
the Fund may lose a portion of the principal amount of a zero coupon
security if it sells the security after an increase in interest rates.
o Unrated securities or securities rated below investment grade may be
subject to a greater market risk than higher rated (lower yield)
securities. Since lower rated and unrated securities are generally
issued by corporations that are not as creditworthy or financially
secure as issuers of higher rated securities, there is a greater risk
that issuers of lower rated (higher yield) securities will not be able
to pay the principal and interest due on such securities, especially
during periods of adverse economic conditions.
o Foreign debt securities are subject to the risks of changes in current
or exchange rates (which impact the financial condition of the issuer),
the difficulty of assessing economic or political trends in foreign
countries and less liquidity and more price volatility than U.S.
securities.
o The market for debt securities may be subject to significant
volatility, and volatility has generally increased in recent years.
Specific Investments or Strategies, and Related Risks
--------------------------------------------------------------------------------
This section provides additional information about certain of the investment
strategies used by the Funds.
Options and Futures Contracts
Investment Strategies. All of the Funds (other than the Money Market Fund) may
purchase and sell put and call options contracts, futures contracts and options
on futures contracts. Depending on the types of securities in which a Fund
invests, the contracts relate to fixed-income securities (including U.S.
Government and agency securities), equity securities or indexes of securities.
All contracts must relate to U.S. issuers or U.S. stock indexes.
A put option on a security gives the Fund the right to sell the security at a
certain price. The purchase of a put option on a security protects the Fund
against declines in the value of the security. A Fund may buy a put option
contract on a security only if it holds the security in its portfolio.
A call option on a security gives the Fund the right to buy the security at a
certain price. The purchase of a call option on a security protects the Fund
against increases in the value of the security that it is considering
purchasing. A Fund may sell a call option contract on a security only if it
holds the security in its portfolio (a covered call).
A Fund may use futures contracts, or options on futures contracts, to protect
against general increases or decreases in the levels of securities prices:
o When a Fund anticipates a general decrease in the market value of
portfolio securities, it may sell futures contracts. If the market
value falls, the decline in the Fund's net asset value may be offset,
in whole or in part, by corresponding gains on the futures position.
o When a Fund projects an increase in the cost of fixed-income securities
or stocks to be acquired in the future, the Fund may purchase futures
contracts on fixed-income securities or stock indexes. If the hedging
transaction is successful, the increased cost of securities
subsequently acquired may be offset, in whole or in part, by gains on
the futures position.
Risks From Options And Futures Contracts. Risks to a Fund in options and futures
transactions include the following:
o The securities held in a Fund's portfolio may not exactly duplicate the
security or securities underlying the options, futures contracts or
options on futures contracts traded by the Fund, and as a result the
price of the portfolio securities being hedged will not move in the
same amount or direction as the underlying index, securities or debt
obligation.
o A Fund purchasing an option may lose the entire amount of the premium
plus related transaction costs.
-15-
<PAGE>
o If a Fund has written a covered call option and the price of the
underlying security increases sufficiently, the option may be
exercised. The Fund will be required to sell the security at a price
below current market value, with the loss offset only by the amount of
the premium the Fund received from writing the option.
Redeemable Securities
An issuer of debt securities, including zero coupon securities, often has the
right after a period of time to redeem (call) securities prior to their stated
maturity date, either at a specific date or from time to time. When interest
rates rise, an issuer of debt securities generally is less likely to redeem
securities that were issued at a lower interest rate, or for a lower amount of
original issue discount in the case of the zero coupon securities. In such
instance, the period until redemption or maturity of the security may be longer
than the purchaser initially anticipated, and the market value of the debt
security may decline. If an issuer redeems a security when prevailing interest
rates are relatively low, a Fund may be unable to reinvest proceeds in
comparable securities with similar yields.
Mortgage-Backed Securities
The Bond Fund, as well as the All America Fund and Aggressive Equity Fund to the
extent they invest in debt securities, may invest in mortgage-backed securities.
These securities represent interests in pools of mortgage loans, or they may be
collateralized mortgage obligations secured by pools of mortgage loans (CMOs).
Holders of mortgage-backed securities receive periodic payments that consist of
both interest and principal from the underlying mortgages.
Some mortgage-backed securities are issued by private corporations.
Mortgage-backed securities also include securities guaranteed by the Government
National Mortgage Association (Ginnie Maes), securities issued by the Federal
National Mortgage Association (Fannie Maes), participation certificates issued
by the Federal Home Loan Mortgage Corporation (Freddie Macs). The timely payment
of principal and interest is backed by the full faith and credit of the U.S.
Government (full faith and credit) in the case of Ginnie Maes, but Fannie Maes
and Freddie Macs are not full faith and credit obligations.
Risks From Mortgage-Backed Securities. Characteristics of underlying mortgage
pools will vary, and it is not possible to precisely predict the realized yield
or average life of a particular mortgage-backed security, because of the
principal prepayment feature inherent in the security.
o A decline in interest rates may lead to increased prepayment of the
underlying mortgages, and the securityholder may have to reinvest
proceeds received at lower yields. Unscheduled or early payments on the
underlying mortgages may shorten the effective maturity of a
mortgage-backed security and could negatively affect the yield and
price of the security.
o An increase in interest rates may lead to prepayment of the underlying
mortgages over a longer time period than was assumed when the
mortgage-backed security was purchased, and the securityholder may not
receive payments to reinvest at higher rates of return. Delay in
payments on the underlying mortgages may lengthen the effective
maturity of the security and could negatively affect the price and
yield of the security.
o Mortgage-backed securities issued by private corporations generally
will have more credit risk than securities issued by U.S. Government
agencies. Freddie Mac and Fannie Mae mortgage-backed securities, which
are not full faith and credit obligations, may have more credit risk
than Ginnie Mae securities.
-16-
<PAGE>
--------------------------------------------------------------------------------
INFORMATION ABOUT FUND SHARES
--------------------------------------------------------------------------------
Pricing of Funds' Shares
--------------------------------------------------------------------------------
The purchase or redemption price of a Fund share is equal to its net asset value
that we next calculate after we receive the purchase or redemption order. A
Fund's net asset value per share is equal to the sum of the value of the
securities it holds plus any cash or other assets (including accrued interest
and dividends), minus all liabilities (including accrued expenses) divided by
the number of shares outstanding. The Adviser determines a Fund's net asset
value as of the close of trading on the New York Stock Exchange on each day the
New York Stock Exchange is open for trading (a Valuation Day). The Exchange
usually closes at 4:00 p.m. Eastern Time but sometimes closes earlier.
o In determining a Fund's net asset value, the Adviser uses market value.
o If a money market security has a remaining maturity of 60 days or less,
the Adviser will use the amortized cost method of valuation to
approximate market value (the Adviser assumes constant proportionate
amortization in value until maturity of any discount or premium).
o If there are any equity or debt securities or assets for which market
quotations are not readily available, the Adviser will use fair value
pricing, as determined in good faith by, or under the direction of, the
Board of Directors of the Investment Company.
Purchases of Fund Shares
--------------------------------------------------------------------------------
Only institutional investors may purchase Fund shares. Institutional investors
include endowments, foundations, corporations, not-for-profit corporations,
municipalities and other public entities and trusts. There is no sales charge
for the purchase of Fund shares.
Mutual of America Securities Corporation, 320 Park Avenue, New York, New York
10022 (the Distributor), is the principal underwriter and distributor of Fund
shares. The Distributor has field offices throughout the United States for the
offering and sale of shares of the Investment Company's Funds.
A shareholder must pay the purchase amount by wire transfer of Federal Funds.
Wire transfers for purchases should be made on any day on which the Investment
Company, Federal Reserve Bank of New York and the Investment Company's custodian
and transfer agent are open and the New York Stock Exchange is open. If a wire
transfer is made on a day the New York Stock Exchange is closed but the
Investment Company's transfer agent is open (such as Good Friday), the purchase
will be effective as of the next Valuation Day (see definition under "Pricing of
Funds' Shares" above).
The Investment Company reserves the right to reject any purchase order, to
increase or decrease the minimum required initial and subsequent investments and
to waive the minimum for an initial investment or for subsequent investments.
-17-
<PAGE>
How to Purchase Shares of the Funds
--------------------------------------------------------------------------------
Application: A prospective purchaser must complete an application,
including any required resolutions, attached to this
Prospectus. You may obtain additional applications by
calling the Investment Company at 1-800-914-8716.
Application Delivery: A prospective purchaser should deliver a completed
application to a registered representative of the
Distributor. Registered representatives are employees
of Mutual of America Life Insurance Company.
Application Approval: After the Investment Company and Distributor have
approved an application, the registered representative
(or the Investment Company) will notify the
prospective purchaser that the account has been
established and that the purchaser may transmit the
initial purchase amount.
Minimum Purchase: A shareholders' initial purchase must total at least
$25,000, and subsequent purchases must total at least
$5,000.
Wire Transfer of Funds: An investor must send all purchase amounts by wire
transfer of Federal Funds to the Investment Company's
account at its transfer agent, on a day the New York
Stock Exchange is open for trading. Your bank may
charge you a fee for the wire transfer. You may
contact the Investment Company by telephone at
1-800-914-8716 between the hours of 9:00 a.m. and 9:00
p.m. Eastern Time, Monday through Friday on any
business day, to advise of an anticipated wire
transfer. Your bank should wire funds according to
these instructions:
<TABLE>
<CAPTION>
State Street Bank and Trust Company
Boston, Massachusetts 02101
ABA #011-000028
BNF = AC-49097181, Mutual Funds F/B/O Mutual of America
OBI = Purchaser: Acct. No.:
<S> <C>
$ to Equity Index Fund $ to All America Fund
$ to Mid-Cap Equity $ to Aggressive Equity Fund
Index Fund
$ to Bond Fund $ to Money Market Fund
</TABLE>
Your funds may be returned to you if the Investment
Company or its transfer agent does not have sufficient
information to insure the correct processing of the
funds or if your application has not yet been
approved.
Receipt of Order: Wire transfer funds received by the Investment Company
in its account prior to 4:00 p.m. Eastern Time on a
Valuation Day will be considered received that day.
Purchase amounts received after 4:00 p.m. Eastern Time
will be considered received on the next Valuation Day.
Wire Transfer Days: Wire transfers for the purchase of Fund shares can be
made on days when banks (including the transfer agent)
and the New York Stock Exchange are open for business.
The Investment Company anticipates that wire transfers
cannot be made on Saturdays and Sundays, and the
holidays of Martin Luther King, Jr.'s Birthday,
Presidents' Day, Good Friday, Memorial Day,
Independence Day, Labor Day, Columbus Day, Veterans'
Day, Thanksgiving Day, Christmas Day and New Year's
Day.
-18-
<PAGE>
Redemptions of Fund Shares
--------------------------------------------------------------------------------
A shareholder at any time may redeem (sell) shares of the Fund(s) that the
shareholder owns. There is no deferred sales charge when a shareholder redeems
shares of the Funds.
If a shareholder's redemption order is received by 4:00 p.m. Eastern Time on a
Valuation Day (see definition under "Pricing of Funds' Shares"), the redemption
proceeds usually will be transmitted on a trade date-plus-one basis (the next
Valuation Day). Wire Transfers of redemption proceeds cannot be made on days the
transfer agent is closed. See "Wire Transfer Days" above under "How to Purchase
Shares of the Funds".
We pay redemption proceeds normally within seven days of receipt of the
redemption request, unless the Investment Company suspends or delays payment of
redemption proceeds as permitted in accordance with SEC regulations.
A shareholder will receive redemption proceeds in cash deposited to its bank
account, except that the Investment Company reserves the right to redeem shares
by the delivery, in whole or in part, of readily marketable securities instead
of cash when a shareholder's redemption proceeds total more than 10% of the net
asset value of a Fund.
The Investment Company reserves the right to change or waive the minimum amount
for a redemption, which currently is $5,000. The Investment Company reserves the
right to redeem, upon not less than 30 days' written notice, all shares in a
shareholder's Fund account when the aggregate value of the shares is less than
$5,000.
Exchanges of Fund Shares
--------------------------------------------------------------------------------
A shareholder may exchange shares of one Fund for shares of another Fund. An
exchange is the redemption of the shares from one Fund and the application of
the redemption proceeds to the immediate purchase of shares of another Fund on a
Valuation Day.
The Investment Company may terminate or modify the terms of the exchange
privilege upon 30 days' written notice to shareholders. The Investment Company
may refuse to implement the purchase side of any exchange request that it
concludes is based on a market timing or asset allocation strategy if the
Investment Company determines the exchange would be disruptive to a Fund.
The Investment Company reserves the right to change or waive the minimum amount
for an exchange, which currently is $5,000.
How to Place a Redemption or Exchange Order
--------------------------------------------------------------------------------
Who May Give an Order: Only a shareholder's authorized person using a
Personal Identification Number (PIN) that we have
assigned may place a redemption order or exchange
order. A shareholder must list authorized persons in
the initial application to purchase Fund shares, in an
amended application, or in another written form that
is acceptable to the Investment Company.
Minimum Amount: A redemption or exchange order must be for at least
$5,000.
Orders by Telephone: A shareholder may place a redemption or exchange order
by telephone if the shareholder elected the option for
telephone orders in its initial application to
purchase Fund shares or in an amended application.
A shareholder should call the Investment Company at
1-800-914-8716 between the hours of 9:00 a.m. and 9:00
p.m. Eastern Time, Monday through Friday on any
Valuation Day to place an order. If a shareholder
places a redemption or exchange order after 4:00 p.m.
Eastern Time on a Valuation Day or on a day that is
not a Valuation Day, the order will be considered
received on the next Valuation Day.
-19-
<PAGE>
The Investment Company will verify the shareholder's
name, the PIN assigned by the Investment Company to
the authorized person calling for the account and the
shareholder's account number, and record telephone
requests.
The Investment Company and the Funds' transfer agent
will not be liable for any losses or expenses
resulting from any telephone redemption or exchange
order reasonably believed to be genuine or for the
inability of a shareholder to make a telephone request
on any particular day. The Investment Company reserves
the right to add to or modify its procedures in the
future.
Orders In Writing: A shareholder may make a redemption or exchange
request in writing. The shareholder must specify the
account name, the account number, the Fund from which
shares are to be redeemed, the dollar amount or number
of shares to be redeemed, and for exchange orders, the
Fund or Funds whose shares will be purchased with the
exchange proceeds.
The necessary authorized person(s) must sign the
order, and each signer should print his or her name
and title under the signature.
A shareholder should send a written request to Mutual
of America Institutional Funds, Inc., 320 Park Avenue,
New York, New York 10022. A shareholder may send a
written request to the Regional Office of the
Distributor, which will forward the request to the
Investment Company. The Valuation Day for the order
will be the Valuation Day the Investment Company
receives the request at its 320 Park Avenue offices.
Redemption Proceeds: A shareholder will receive redemption proceeds by wire
transfer of Federal Funds to the bank account stated
in the shareholder's initial application, or in an
amended application. An authorized person may not
specify a different bank account by telephone.
Exchange Proceeds: The proceeds from the shares of the Fund being
exchanged are immediately applied for the purchase of
shares in another Fund.
Shareholder Reports and Confirmation Statements
--------------------------------------------------------------------------------
The Investment Company, on behalf of the Distributor, will send to shareholders
confirmation statements for each purchase, exchange or redemption transaction. A
confirmation statement will show the Fund, number of shares, order date, net
asset value per share and dollar amount for the transaction. A shareholder must
report any error on a confirmation statement within two weeks after the mailing
or other transmission of the statement to the shareholder.
The Investment Company will send each shareholder a quarterly statement, which
will include Fund shares purchased, exchanged or redeemed during the month, the
net asset value per share and total dollar amount for each transaction, and the
shareholder's account balance in each Fund at the end of the period.
Dividends, Capital Gains Distributions and Taxation of Funds
--------------------------------------------------------------------------------
For each Fund, the Investment Company declares dividends at the end of June and
end of December to pay out all or substantially all of the Fund's net investment
income (dividends) and declares dividends at the end of December to pay out
substantially all of the Fund's net realized short and long term capital gains
(capital gains distributions). A Fund may make a special distribution in
September of each year to comply with Federal tax law requirements for mutual
funds.
-20-
<PAGE>
A shareholder may elect, in its application to purchase Fund shares or in an
amended application, to:
o automatically reinvest dividends and distributions from a Fund in
additional shares of the Fund;
o receive dividends and distributions in cash; or
o automatically reinvest dividends from any Fund in shares of the Money
Market Fund.
A Fund is not subject to Federal income tax on ordinary income and net realized
capital gains that it distributes to shareholders, as long as the Fund satisfies
Federal tax law provisions, including certain minimum distribution requirements.
Each Fund is treated as a separate corporation for Federal income tax purposes
and must satisfy the tax requirements independently.
Shareholder Taxation
--------------------------------------------------------------------------------
Each shareholder should consult its own tax adviser about the Federal, state,
local and, if applicable, foreign tax consequences of investing in Fund shares,
because investors' tax situations will vary. Below are general rules about
Federal income taxation for an investor to consider.
When a shareholder redeems (sells) shares of a Fund, including in an exchange
transaction, the shareholder will have a gain or a loss on its investment in
those shares.
o If the shareholder owned the shares sold for more than a year, it
generally will have a long-term capital gain or loss.
o If the shareholder owned the shares sold for less than a year, any gain
will be short-term capital gain taxable at ordinary income rates, and
any loss may be subject to special tax rules.
When a shareholder receives dividends or distributions from a Fund, the
shareholder (unless it is exempt from taxation) will owe tax on the amount
received, even if the shareholder automatically reinvests the dividend or
distribution in additional Fund shares. A shareholder will receive dividends or
distributions when declared and paid by a Fund, even if the shareholder has only
recently purchased Fund shares.
o Ordinary income rates apply to a Fund's dividends of ordinary income
and net realized short-term capital gains.
o Capital gain rates apply to a Fund's distributions of net realized
long-term capital gains.
o A potential investor should consider the tax impact of purchasing Fund
shares when the Fund is expected to pay dividends or distributions in
the near future.
Mutual of America invested in each Fund when it began operations. A Fund (other
than the Money Market Fund) may realize investment gains that are included in
the dividends or distributions to shareholders when Mutual of America redeems
all or any portion of its investment.
Withholding For Federal Income Taxes. A shareholder on its application to
purchase Fund shares may make representations and provide information to be
exempt from withholding for Federal income tax on the Investment Company's
distributions and dividends and payment of redemption proceeds. U.S. corporate
shareholders and certain other entities named in the Internal Revenue Code are
exempt from withholding under certain circumstances.
The Investment Company will withhold for Federal income tax if:
o a shareholder has not provided a correct taxpayer identification
number, or
o a shareholder has not made the certifications required to be exempt
from withholding, or
o the Investment Company or the shareholder has been notified by the
Internal Revenue Service that the shareholder is subject to back-up
withholding.
A shareholder may credit any amount withheld by the Investment Company against
the Federal income tax liability of the shareholder.
Each January, the Investment Company will provide reports to Fund shareholders
of the Federal income tax status of distributions and dividends made by the
Funds during the previous year.
-21-
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
The financial highlights tables are intended to help you understand the Funds'
financial performance. They show performance for the period of a Fund's
operations, because the Funds have operated less than five years. (The Mid-Cap
Equity Index and Aggressive Equity Funds began operations on September 1, 2000
and are not shown below.) Certain information reflects financial results for a
single Fund share.
The total returns in the table represent the rate that an investor would have
earned or lost on an investment in the particular Fund (assuming reinvestment of
all dividends and distributions). This information has been audited by Arthur
Andersen LLP, whose report, along with the Investment Company's financial
statements, are included in the annual report, which is available upon request.
All America Fund
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended December 31,
June 30, 2000 -------------------------------
(unaudited) 1999 1998 1997 1996*
------------ ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period/Year $16.47 $15.08 $12.65 $10.98 $10.00
------ ------ ------ ------ ------
Income From Investment Operations:
Net Investment Income .05 .09 .07 .08 .06
Net Gains or Losses on Securities
(realized and unrealized) .73 3.81 2.57 2.77 .98
------ ------ ------ ------ ------
Total From Investment Operations .78 3.90 2.64 2.85 1.04
------ ------ ------ ------ ------
Less Dividend Distributions:
From net investment income (.05) (.08) (.08) (.08) (.06)
From capital gains -- (2.43) (.13) (1.10) --
------ ------ ------ ------ ------
Total Distributions (.05) (2.51) (.21) (1.18) (.06)
------ ------ ------ ------ ------
Net Asset Value, End of Period/Year $17.20 $16.47 $15.08 $12.65 $10.98
====== ====== ====== ====== ======
Total Return(a) 4.7% 26.0% 21.0% 26.0% 10.4%
Ratios/Supplemental Data
Net Assets, End of Period/Year ($ millions) $68.7 $ 72.4 $ 70.8 $ 56.7 $ 55.5
Ratio of Net Investment Income to Average Net Assets .57%(b) .51% .55% .59% .95%(b)
Ratio of Expenses to Average Net Assets .81%(b) .85% .84% .84% .87%(b)
Ratio of Expenses to Average Net Assets after
Expense Reimbursement . .81%(b) 84% .82% .81% .85%(b)
Portfolio Turnover Rate(c) 46.10% 34.89% 41.25% 35.96% 9.33%
</TABLE>
-------------
* Commenced operations May 1, 1996.
See footnotes on page 24.
-22-
<PAGE>
Equity Index Fund
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
June 30, 2000 Year Ended
(unaudited) December 31, 1999*
---------------- ------------------
<S> <C> <C>
Net Asset Value, Beginning of Period/Year $10.80 $10.00
------ ------
Income From Investment Operations:
Net Investment Income .05 .08
Net Gains or Losses on Securities (realized and unrealized) (.10) .82
------ ------
Total From Investment Operations (.05) .90
------ ------
Less Dividend Distributions:
From net investment income (.05) (.08)
From capital gains -- (.02)
------ ------
Total Distributions (.05) (.10)
------ ------
Net Asset Value, End of Period/Year $10.70 $10.80
------ ------
Total Return(a) (.5)% 9.0%
Ratios/Supplemental Data
Net Assets, End of Period/Year ($ millions) $36.20 $29.5
Ratio of Net Investment Income to Average Net Assets .98%(b) 1.22%(b)
Ratio of Expenses to Average Net Assets .64%(b) .63%(b)
Ratio of Expenses to Average Net Assets after
Expense Reimbursement .33%(b) .32%(b)
Portfolio Turnover Rate(c) 1.53% 5.67%
</TABLE>
-------------
* Commenced operations May 3, 1999.
See footnotes on page 24.
Bond Fund
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended December 31,
June 30, 2000 -------------------------------
(unaudited) 1999 1998 1997 1996*
------------- ----- ----- ----- ------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period/Year $9.45 $10.41 $10.41 $10.13 $10.01
----- ------ ------ ------ ------
Income From Investment Operations:
Net Investment Income .36 .60 .61 .59 .38
Net Gains or Losses on Securities
(realized and unrealized) (.13) (.87) .24 .29 .12
----- ------ ------ ------ ------
Total From Investment Operations .23 (.27) .85 .88 .50
----- ------ ------ ------ ------
Less Dividend Distributions:
From net investment income (.32) (.60) (.62) (.59) (.38)
From capital gains -- (.09) (.23) (.01) --
----- ------ ------ ------ ------
Total Distributions (.32) (.69) (.85) (.60) (.38)
----- ------ ------ ------ ------
Net Asset Value, End of Period/Year $ 9.36 $ 9.45 $10.41 $10.41 $10.13
====== ====== ====== ====== ======
Total Return(a) 2.4% (3.5)% 8.3% 8.9% 5.0%
Ratios/Supplemental Data
Net Assets, End of Period/Year ($ millions) $ 27.0 $ 28.7 $ 25.2 $ 22.1 $ 21.0
Ratio of Net Investment Income to Average Net Assets 7.32%(b) 6.23% 5.84% 5.69% 5.63%(b)
Ratio of Expenses to Average Net Assets .97%(b) .93% .97% 1.00% .90%(b)
Ratio of Expenses to Average Net Assets After
Expense Reimbursement .70%(b) 70% .70% .70% .70%(b)
Portfolio Turnover Rate(c) 18.29% 10.07% 33.32% 56.18% 17.85%
</TABLE>
-------------
* Commenced operations May 1, 1996.
See footnotes on page 24.
-23-
<PAGE>
Money Market Fund
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended December 31,
June 30, 2000 ------------------------
(unaudited) 1999 1998 1997*
------------- ------ ------ ------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period/Year $10.39 $10.23 $10.15 $10.00
------ ------ ------ ------
Income From Investment Operations:
Net Investment Income .29 .50 .52 .35
Net Gains or Losses on Securities
(realized and unrealized) -- -- -- --
------ ------ ------ -----
Total From Investment Operations .29 .50 .52 .35
------ ------ ------ -----
Less: Dividend Distributions
From Net Investment Income (.24) (.34) (.44) (.20)
------ ------ ------ -----
Total Distributions (.24) (.34) (.44) (.20)
------ ------ ------ -----
Net Asset Value, End of Period/Year $10.44 $10.39 $10.23 $10.15
====== ====== ====== ======
Total Return(a) 2.9% 4.9% 5.3% 3.5%
Ratios/Supplemental Data
Net Assets, End of Period/Year ($ millions) $ 40.7 $30.2 $ 6.5 $ 7.5
Ratio of Net Investment Income to Average Net Assets 5.72%(b) 4.86% 5.14% 5.17%(b)
Ratio of Expenses to Average Net Assets .61%(b) 1.02% 3.21% 2.47%(b)
Ratio of Expenses to Average Net Assets after
Expense Reimbursement .40%(b) .40% .40% .40%(b)
Portfolio Turnover Rate(c) N/A N/A N/A N/A
</TABLE>
-------------
* Commenced operations May 1, 1997
(a) Not annualized. Total return would have been lower had certain expenses not
been reduced through expense reimbursement (Note 2).
(b) Annualized.
(c) Portfolio turnover rate excludes short-term securities.
N/A Not Applicable
-24-
<PAGE>
Investment Company
-------------------
Mutual of America Institutional Funds, Inc.
Distributor
-----------
Mutual of America Securities Corporation
Investment Adviser
------------------
Mutual of America Capital Management Corporation
Subadvisers for a portion of the All America Fund
-------------------------------------------------
Fred Alger Management, Inc.
Oak Associates, Ltd.
Independent Auditors
--------------------
Arthur Andersen LLP
Counsel
-------
Swidler Berlin Shereff Friedman, LLP
Custodian
---------
The Chase Manhattan Bank
Transfer Agent
--------------
State Street Bank and Trust Company
The Investment Company sells shares of its Funds
only to institutional investors.
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
320 Park Avenue, New York, New York 10022 1-800-914-8716
You May Obtain More Information
--------------------------------------------------------------------------------
Registration Statement. We have filed with the Securities and Exchange
Commission (the Commission) a Registration Statement about the Investment
Company. The Registration Statement includes this prospectus, a Statement of
Additional Information (the SAI), and exhibits. You may examine and copy the
Registration Statement at the Commission's Public Reference Room in Washington,
DC. You may call 1-800-SEC-0330 to learn about the operation of the Public
Reference Room.
Statement of Additional Information. The SAI contains additional information
about the Investment Company and its Funds. We incorporate the SAI into this
Prospectus by reference.
Semi-Annual and Annual Reports. Additional information about the Funds'
investments is available in the Investment Company's annual and semi-annual
reports to shareholders. In the annual reports, you will find a discussion (for
all Funds except the Money Market Fund) of the market conditions and investment
strategies that significantly affected the Funds' performance during its last
fiscal year.
How To Obtain the SAI and Reports. You may obtain a free copy of the SAI or of
the Investment Company's most recent annual and semi-annual financial
statements, by:
o writing to us at 320 Park Avenue, New York, NY 10022, Attn: Institutional
Funds, or
o calling 1-800-914-8716 and asking for Mutual of America Institutional
Funds, Inc.
The Commission has an Internet web site at http://www.sec.gov. You may obtain
the Investment Company's Registration Statement, including the SAI, and its
semi-annual and annual reports through the Commission's Internet site. You also
may obtain copies of these documents, upon your payment of a duplicating fee, by
writing to the Commission's Public Reference Section, Washington, DC 20549-6009.
Where To Direct Questions. If you have questions about the operations of the
Investment Company, you should contact your representative at Mutual of America
Securities Corporation. You may call 1-800-914-8716 for the address and phone
number of the office nearest you.
Investment Company Act of 1940 Act File Number 811-8922
--------------------------------------------------------------------------------
Prospectus dated September 1, 2000
<PAGE>
MUTUAL OF AMERICA
INSTITUTIONAL FUNDS, INC.
320 PARK AVENUE
NEW YORK NY 10022-6839
Application and Authorization Form
|_| Initial Distributor:
|_| Amendment Mutual of America Securities Corporation
Member NASD/SIPC
320 Park Avenue, New York, NY 10022-6839
---------------------------
Taxpayer ID Number
___________________________
(Account Number Assigned)
-----------------------------
1. Applicant's Account
Identification
Please print
________________________________________________________________________________
FULL LEGAL NAME OF INSTITUTION (OWNER OF ACCOUNT) TELEPHONE NUMBER
________________________________________________________________________________
ADDRESS FAX NUMBER
________________________________________________________________________________
CITY STATE ZIP CODE
________________________________________________________________________________
TO THE ATTENTION OF (NAME AND TITLE)
________________________________________________________________________________
NAME, TITLE AND ADDRESS OF PERSON TO RECEIVE |_| TAX REPORTS
|_| DUPLICATE CONFIRMATIONS
________________________________________________________________________________
-----------------------------
2. Type of Entity
Check applicable boxes,
and fill in blanks
|_| Endowment |_| Not-for-Profit Corporation |_| Foundation |_| Corporation
|_| Trust |_| Partnership (general) (limited) Circle one
|_| Other ______________________________________________________________________
Year entity started _____________ State where formed ___________________________
-----------------------------
3. Investment Objectives
Identify the Funds of Mutual of America Institutional Funds, Inc. whose
investment objectives are consistent with Applicant's current investment
objectives: Check appropriate box(es) below.
|_| Equity Index Fund - investment results that correspond to the investment
performance of the S&P 500 Index
|_| All America Fund - total return by capital growth and, to a lesser extent,
current income
|_| Mid-Cap Equity Index Fund - investment results that correspond to the
investment performance of the S&P MidCap 400 Index
|_| Aggressive Equity Fund - capital appreciation by investing primarily in
growth and value common stocks
|_| Bond Fund - current income with preservation of capital a secondary
objective
|_| Money Market Fund - current income to extent consistent with liquidity,
investment quality and stability of capital
Do you expect to redeem Fund shares, other than from the Money Market Fund,
within 30 to 60 days from the date of initial investment to meet short-term
liquidity needs? |_| Yes |_| No
-----------------------------
4. Initial Investment in
Fund Portfolios
By wire transfer only
Total Investment $____________________ (minimum $25,000 unless waived by
Institutional Fund)
Equity Index $_____________________________ All America $_______________________
Mid-Cap Equity Index $_____________________ Aggressive Equity $_________________
Bond $_____________________________________ Money Market $______________________
<PAGE>
-----------------------------
5. Telephone Redemption
and Exchange Requests
Check one box
|_| Redemption and exchange requests may be made by telephone by Authorized
Persons (Item 8 below) or any person reasonably believed by Mutual of
America Institutional Funds, Inc. ("the Institutional Fund"), State Street
Bank and Trust Company ("Transfer Agent"), or Mutual of America Securities
Corporation ("Distributor") to be an Authorized Person.
|_| Redemption and exchanges may be made in writing only.
-----------------------------
6. Dividends and
Distributions
Check one box
|_| Pay all dividends and capital gains distributions in cash to shareholder
by wire transfer to account specified in Item 7 of this Application.
|_| Invest all dividends and capital gains distributions from all Funds in
Money Market Fund shares.
|_| Reinvest all dividends and capital gains distributions from a Fund in
additional Fund shares.
-----------------------------
7. Payment of Proceeds
to Owner
Information is required
May only be changed by
amendment to Application
All redemption proceeds, and dividends and capital gains distributions that are
to be paid to Applicant, should be sent by wire transfer to Applicant as
follows:
Bank Name ______________________________________________________________________
Address ________________________________________________________________________
City _____________________________________________State _____ Zip Code ________
ABA No. ________________________________________________________________________
Branch Name (if any) and ABA No. _______________________________________________
-----------------------------
8. Authorized Persons
May only be changed by
amendment to Application
The following persons have the right and authority to give instructions and to
take actions as Authorized Persons as contemplated in this Application and the
prospectus of the Institutional Fund, each Authorized person has been duly
elected or appointed and legally holds the office or position specified, and the
signature set forth opposite the name of each Authorized Person is a true and
correct specimen. --attach pages if necessary--
Name and Title (Please print) Signature
__________________________________ ____________________________________
__________________________________ ____________________________________
__________________________________ ____________________________________
-----------------------------
9. Confirmation
Statements, Telephone
Recording
Each report of the execution of an order and statement of the account shall be
conclusive if Applicant does not notify the Institutional Fund of any error
within two weeks after the mailing or other transmission of such document to
Applicant. Applicant authorizes the Institutional Fund, Transfer Agent and the
Distributor, each in their discretion and without prior notice to Applicant, to
record and/or monitor telephone conversations in connection with Applicant's
account and transactions in Fund shares.
<PAGE>
-----------------------------
10. Certificate of Authority
By signing this Application and delivering it to the Institutional Fund,
Applicant represents and warrants that it has the power and authority to
purchase Fund shares through the Distributor, on the terms and conditions set
forth in this Application and the Institutional Fund prospectus, and each signer
of the Application represents and warrants that he (or she) is duly authorized
to sign on behalf of Applicant.
For Applicant's use if needed, attached are forms of (1) Certificate of
Resolutions and Incumbency, for use by a corporation or other entity that has a
Board of Directors or Board of Trustees, and (2) Certificate of Authority and
Incumbency, for use by a trust, partnership or other unincorporated entity.
-----------------------------
11. Financial Information
Give approximate amounts
Annual Income/Revenue: $_____________ Current Securities Portfolio: ____________
-----------------------------
12. Investing Information
Does Applicant receive investment advice for the purchase or sale of securities
from any of the following? Yes |_| No |_| If "Yes" check all that apply:
|_| In-House Investment |_| Bank Trust Department |_| Investment Adviser
Professionals
|_| Investment Committee |_| Other:___________________________________________
of Board
Does Applicant understand the investment risks, including market
risks, of owning shares of the Mutual of America
Institutional Funds? |_| Yes |_| No
Will Applicant redeem holdings in any mutual fund, certificate
of deposit or other investment to purchase Institutional
Fund shares? |_| Yes |_| No
State redemption amount and, if applicable, the total fee or penalty:___________
-----------------------------
13. Investment Experience
Check the level of
Applicant's experience in
securities listed
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------
None Some Much None Some Much
<S> <C> <C> <C> <C> <C> <C>
Exchange-listed equities Government bonds
-------------------------------------------------------------------------------------------------
NASDAQ/OTC equities Equity mutual funds
-------------------------------------------------------------------------------------------------
Corporate bonds Bond mutual funds
-------------------------------------------------------------------------------------------------
</TABLE>
-----------------------------
14. Pre-Dispute Arbitration Agreement
Arbitration will be used to resolve any dispute between Applicant (you) and
Mutual of America Securities Corporation (us). Mutual of America Securities
Corporation serves as a distributor of shares of Mutual of America Institutional
Funds, Inc. and may in the future distribute shares of additional mutual funds
(together, the "Funds"). Arbitration forums were conceived by the Securities and
Exchange Commission, the New York Stock Exchange, Inc., and the National
Association of Securities Dealers, Inc. to provide a dispute resolution
mechanism that is an alternative to court proceedings and that is expected to be
more efficient and less costly than court litigation.
You acknowledge that you are aware of the following aspects of arbitration:
1. Arbitration is final and binding on the parties.
2. The parties waive their right to seek remedies in court, including
the right to jury trial.
3. Pre-arbitration discovery is generally more limited than and
different from court proceedings.
4. The arbitrators' award is not required to include factual findings
or legal reasoning, and any party's right to appeal or to seek
modification of rulings by the arbitrators is strictly limited.
5. The panel of arbitrators will typically include a minority or
arbitrators who were or who are affiliated with the securities
industry.
<PAGE>
You agree that all controversies that may arise between you and us concerning
any order or transaction, or concerning the continuation, performance or breach
of the Agreement, the Application for the purchase of Fund shares, or any other
agreement between you and us, shall be determined by arbitration before a panel
of independent arbitrators set up by the National Association of Securities
Dealers, Inc., conducted in accordance with the arbitration rules of the
National Association of Securities Dealers, Inc. New York law, without regard to
choice of law provisions, shall govern and shall be applied by the arbitrators
to any such controversy. Punitive damages, if any, shall be limited to the
maximum extent permitted by the National Association of Securities Dealers,
Inc., or otherwise permitted by law. You understand and acknowledge that
judgment upon any arbitration award may be entered in any court of competent
jurisdiction.
No person shall bring a putative or certified class action to arbitration, nor
seek to enforce any pre-dispute arbitration agreement against any person who has
initiated in court a putative class action; or who is a member of a putative
class who has not opted out of the class with respect to any claims encompassed
by the putative class action, until: (1) the class certification is denied, or
(ii) the class is decertified, or (iii) the customer is excluded from the class
by the court. Such forbearance to enforce an agreement to arbitrate shall not
constitute a waiver of any rights under this agreement except to the extent
stated herein.
-----------------------------
15. Tax Certification
Check one box
Applicant is a tax-exempt organization: |_| Yes |_| No
Important: If Applicant is for any reason subject to backup withholding, strike
out phrase (2).
Applicant certifies under penalties of perjury that (1) the number shown in the
Taxpayer ID box above is Applicant's correct taxpayer identification number; and
(2) Applicant is not subject to backup withholding because (a) Applicant is
exempt from backup withholding, or (b) Applicant has not been notified by the
IRS that it is subject to backup withholding as a result of a failure to report
all interest or dividends, or (c) the IRS has notified the Applicant that it is
no longer subject to backup withholding.
-----------------------------
16. Acceptance and
Signature(s)
Do not wire funds until
you have been notified of
Application approval
The Applicant affirms that: it has received the prospectus for the Institutional
Fund; the information and certifications set forth in this Application
(amendment) are true and correct, and the Institutional Fund, the Transfer Agent
and the Distributor are entitled to rely on them until the Institutional Fund
receives actual written notice in accordance with its procedures of any change
to the information and/or certifications; and Applicant has reviewed the
Pre-Dispute Arbitration Agreement in Paragraph 14 and agrees to its terms and
has reviewed the tax certification in Paragraph 15.
APPLICANT_______________________________________________________________________
By:____________________________ ______________________________ Date:_________
Signature Print Name and Title of Authorized Person
By:____________________________ ______________________________ Date:_________
Signature [If required] Print Name and Title of Secretary or Other
Authorized Person
(seal)
--------------------------------------------------------------------------------
THE FOLLOWING IS TO BE COMPLETED BY MUTUAL OF AMERICA SECURITIES CORPORATION
--------------------------------------------------------------------------------
Did Consultant solicit the Applicant's purchase of Mutual of
America Institutional Funds, Inc., shares? |_| Yes |_| No
How long has Consultant known Applicant? _____________________ (Months or Years)
Consultant represents and certifies that: (1) based on the information provided
to me by Applicant, the purchase of shares of the Mutual of America
Institutional Funds, Inc. (the "Funds") is suitable for the Applicant's stated
investment objective(s) and financial position; (2) the Applicant has received
the current prospectus for the Funds and any supplements thereto; (3) I am
properly licensed with Mutual of America Securities Corporation at the state and
federal levels to sell shares of the Funds to Applicant; (4) when I have
knowledge of any changes or updates to information provided by Applicant, I will
promptly modify the records of Mutual of America Securities Corporation. My
suitability determination was based on (check as applicable and attach summaries
of discussions or other information obtained):
|_| Discussions with Applicant |_| Financial or other information
or Applicant's Adviser provided by Applicant or its
Adviser
--------------------------------------------------------------------------------
SIGNATURE OF CONSULTANT, AS PRINT NAME DATE
REGISTERED REPRESENTATIVE
OF SECURITIES CORP.
--------------------------------------------------------------------------------
SIGNATURE OF REGISTERED PRINT NAME DATE
PRINCIPAL OF SECURITIES CORP.
--------------------------------------------------------------------------------
<PAGE>
[For use by a corporation or other entity that has a
Board of Directors or Board of Trustees]
CERTIFICATE OF RESOLUTIONS AND INCUMBENCY
WHEREAS, the Board of Directors (Trustees) of __________________________________
_________________________________ ("Applicant"), has duly assembled at a meeting
on_______________, 200__, with a quorum at all times present and voting.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. Any officer of Applicant holding one of the following titles:
______________, ____________________, _______________________ or
________________________, is authorized to:
(a) Complete the Application and Authorization Form (the "Application")
for the Mutual of America Institutional Funds, Inc. (the "Fund"), in
the manner the officer deems appropriate, sign the Application and
bind the Applicant to the terms of the Application.
(b) Open an investment account with the Fund through Mutual of America
Securities Corporation, as broker-dealer (the "Securities Corp.").
(c) Provide instructions to the Fund or the Securities Corp. to effect
securities transactions for the purchase, exchange and redemption of
shares of any of the Fund's portfolios, amend the Application as the
officer deems appropriate and certify changes in the names and
titles of authorized officers.
2. The Fund, its transfer agent and the Securities Corp. are entitled to rely
on these authorizing resolutions until the Applicant has delivered notice
in writing to Fund of any amendment to, or revocation of, such authority,
and they shall be held harmless for relying upon certifications delivered
to Fund by Applicant until revoked or modified.
CERTIFICATE: The undersigned Secretary (other:_____________________________) of
Applicant hereby certifies that the foregoing resolutions were duly adopted by
the Board of Directors (Trustees) at a meeting held on the ________ day of
______________, 200___ and remain in effect, and that the following persons have
been duly elected or appointed by Applicant to the positions indicated, and
their signatures are true specimens:
Name Title Signature
---- ----- ---------
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
Date: ________________ By: __________________________________________(Signature)
Print Name:
Print Title:
(Corporate Seal)
<PAGE>
[For use by a trust, general or limited partnership,
or other unincorporated entity]
CERTIFICATE OF AUTHORITY AND INCUMBENCY
The undersigned, as ____________________ [Trustee(s), General/Limited
Partner(s), Officer(s) --specify] of ___________________________("Applicant"),
does/do hereby certify that:
1. The undersigned is/are duly authorized to make decisions to invest
Applicant's assets.
2. Any person holding one of the following positions with Applicant:
______________________, _______________________ or _________________, is
authorized to:
(a) Complete the Application and Authorization Form (the "Application")
for the Mutual of America Institutional Funds, Inc. (the "Fund"), in
the manner such person deems appropriate, sign the Application and
bind the Applicant to the terms of the Application.
(b) Open an investment account with the Fund through Mutual of America
Securities Corporation, as broker-dealer (the "Securities Corp.").
(c) Provide instructions to the Fund or the Securities Corp. to effect
securities transactions for the purchase, exchange and redemption of
shares of any of the Fund's portfolios, amend the Application as
such person deems appropriate and certify changes in the names and
titles of authorized persons.
3. The Fund, its transfer agent and the Securities Corp. are entitled to rely
on these authorizing resolutions until the Applicant has delivered notice
in writing to the Fund of any amendment to, or revocation of, such
authority, and they shall be held harmless for relying upon certifications
delivered to the Fund by Applicant until revoked or modified.
CERTIFICATE: The undersigned certify that each of the following persons holds
the position or acts in the capacity indicated on behalf of Applicant, and each
signature is a true specimen:
Name Position Signature
---- -------- ---------
________________________________________________________________________________
________________________________________________________________________________
Date of Certificate: _________________ Signatures below
By: __________________________________ By: __________________________________
Print Name: Print Name:
Print Title: Print Title:
(Seal) if any
<PAGE>
MUTUAL OF AMERICA
INSTITUTIONAL
FUNDS, INC.
EQUITY INDEX FUND
ALL AMERICA FUND
MID-CAP EQUITY INDEX FUND
AGGRESSIVE EQUITY FUND
BOND FUND
MONEY MARKET FUND
Distributed by:
MUTUAL OF AMERICA SECURITIES CORPORATION
320 PARK AVENUE
NEW YORK, NY 10022-6839
................................................
Investment Adviser
MUTUAL OF AMERICA CAPITAL MANAGEMENT CORPORATION
Transfer and Shareholder Services Agent
STATE STREET BANK AND TRUST COMPANY
Investment Accounting Agent
MUTUAL OF AMERICA CAPITAL MANAGEMENT CORPORATION
Independent Accountants
ARTHUR ANDERSEN LLP
Custodian
THE CHASE MANHATTAN BANK
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
320 PARK AVENUE, NEW YORK, NEW YORK 10022
(800) 914-8716
EQUITY INDEX FUND AGGRESSIVE EQUITY FUND
ALL AMERICA FUND BOND FUND
MID-CAP EQUITY INDEX FUND MONEY MARKET FUND
STATEMENT OF ADDITIONAL INFORMATION
September 1, 2000
This Statement of Additional Information is not a prospectus. You should read it
in conjunction with the Mutual of America Institutional Funds, Inc. Prospectus
dated September 1, 2000, and you should keep it for future use. We incorporate
the Prospectus by reference into this Statement of Additional Information.
A copy of the Prospectus to which this Statement of Additional Information
relates is available to you at no charge. To obtain the Prospectus, you may
write to Mutual of America Institutional Funds, Inc. at the above address or
call the telephone number listed above.
TABLE OF CONTENTS
Page
----
Investment Company's Form of Operations .................................. 2
Investment Strategies and Related Risks .................................. 3
Additional Permitted Investments ....................................... 3
Additional Investment Strategies ....................................... 5
Additional Information about Specific Types of Securities .............. 9
Fundamental Investment Restrictions ...................................... 13
Non-Fundamental Investment Policies ...................................... 14
Management of the Investment Company ..................................... 15
Investment Advisory Arrangements ......................................... 16
Administrative Agreements ................................................ 18
Portfolio Transactions and Brokerage ..................................... 19
Purchase, Redemption and Pricing of Shares ............................... 20
Taxation of the Investment Company ....................................... 22
Taxation of Shareholders ................................................. 22
Yield and Performance Information ........................................ 24
Description of Corporate Bond Ratings .................................... 27
Distribution of Fund Shares .............................................. 28
Legal Matters ............................................................ 28
Independent Auditors ..................................................... 28
Custodian ................................................................ 28
Use of Standard & Poor's Indexes ......................................... 28
Financial Statements ..................................................... 29
<PAGE>
INVESTMENT COMPANY'S FORM OF OPERATIONS
History and Operating Form
--------------------------------------------------------------------------------
Mutual of America Institutional Funds, Inc. (the Investment Company) was formed
on October 27, 1994 as a Maryland corporation. It is a diversified, open-end
management investment company registered under the Investment Company Act of
1940 (the 1940 Act).
The Investment Company issues separate classes (or series) of stock, each of
which represents a separate Fund of investments. There are currently six Funds:
the Equity Index Fund, All America Fund, Mid-Cap Equity Index Fund, Aggressive
Equity Fund, Bond Fund and Money Market Fund.
Offering of Shares
--------------------------------------------------------------------------------
The Investment Company is designed primarily as an investment vehicle for
endowments, foundations, corporations, municipalities or other public entities
and other institutional investors.
Currently, the Investment Company requires a minimum initial investment of
$25,000, except that the Investment Company may waive this requirement in its
discretion. The minimum amount for additional purchases of Fund shares currently
is $5,000.
Description of Shares
--------------------------------------------------------------------------------
The authorized capital stock of the Investment Company consists of one billion
shares of common stock, $.01 par value. The Investment Company currently has six
classes (or series) of common stock, and it may establish additional classes and
allocate its authorized shares either to new classes or to one or more of the
existing classes.
The Investment Company reserves the right to redeem, upon not less than 30 days'
written notice, all shares in a shareholder's Fund account when the aggregate
value of the shares is less than $5,000.
All shares of common stock, of whatever class, are entitled to one vote. The
votes of all classes are cast on an aggregate basis, except that if the
interests of the Funds differ, the voting is on a Fund-by-Fund basis. Examples
of matters that would require a Fund-by-Fund vote are changes in the fundamental
investment policy of a particular Fund and approval of the Investment Advisory
Agreement or a Subadvisory Agreement for the Fund.
The Investment Company is not required to hold annual meetings. It will call a
special meeting of shareholders when a meeting is requested by shareholders
holding at least 25% of the outstanding shares of the Investment Company
entitled to vote at the meeting except that a meeting to remove one or more
directors shall be called when requested by 10% of the outstanding shares of the
Investment Company entitled to vote at the meeting.
The shares of each Fund, when issued, will be fully paid and nonassessable and
will have no preference, preemptive, conversion, exchange or similar rights.
Shares do not have cumulative voting rights.
Each issued and outstanding share in a Fund is entitled to participate equally
in dividends and distributions declared by such Fund and, upon liquidation or
dissolution, in the net assets of such Fund remaining after satisfaction of
outstanding liabilities. Accrued liabilities which are not allocable to one or
more Funds will generally be allocated among the Funds in proportion to their
relative net assets. In the unlikely event that any Fund incurred liabilities in
excess of its assets, each other Fund could be liable for such excess.
2
<PAGE>
INVESTMENT STRATEGIES AND RELATED RISKS
The Prospectus describes each Fund's principal investment strategy(ies) and the
related risks. You should refer to "Summary of How Our Funds Invest" and
"Details about How Our Funds Invest and Related Risks" in the Prospectus to
learn about those strategies and risks.
Additional Permitted Investments
--------------------------------------------------------------------------------
The Investment Company's Funds may use investment strategies and purchase types
of securities in addition to those discussed in the Prospectus.
Equity Index Fund and Mid-Cap Equity Index Fund: In addition to common stocks
and futures contracts, the Funds may invest in:
o money market instruments, and
o U.S. Government and U.S. Government agency obligations.
All America Fund -- In addition to common stocks, the Adviser and two
Subadvisers who manage approximately 40% of the net assets of the All America
Fund (the Active Assets) may invest assets in:
o securities convertible into common stocks, including warrants and
convertible bonds,
o bonds,
o money market instruments,
o U.S. Government and U.S. Government agency obligations (including
mortgage-backed securities),
o foreign securities and ADRs,
o futures and options contracts, and
o preferred stock.
The portion of the All America Fund invested to replicate the S&P 500 Index (the
Indexed Assets) may also be invested in:
o money market instruments, and
o U.S. Government and U.S. Government agency obligations.
The Adviser may manage cash allocated to the Active Assets prior to investment
in securities by the Subadvisers.
Aggressive Equity Fund: In addition to common stocks, the Aggressive Equity Fund
may invest in:
o securities convertible into common stocks, including warrants and
convertible bonds,
o bonds,
o money market instruments,
o U.S. Government and U.S. Government agency obligations (including
mortgage-backed securities),
o foreign securities and ADRs,
o futures and options contracts, and
o preferred stock.
3
<PAGE>
Bond Fund: In addition to investment grade debt securities of the type
described in the Prospectus, the Bond Fund may invest in :
o asset-backed securities,
o non-investment grade securities,
o foreign securities,
o cash and money market instruments,
o stocks acquired either by conversion of fixed-income securities or by
the exercise of warrants attached to fixed income securities,
o preferred stock
o options and futures contracts, and
o equipment trust certificates.
Money Market Fund: In addition to commercial paper and U.S. Treasury Bills, the
Fund may invest in any of the following kinds of money market instruments,
payable in United States dollars:
o securities issued or guaranteed by the U.S. Government or a U.S.
Government agency or instrumentality;
o negotiable certificates of deposit, bank time deposits, bankers'
acceptances and other short-term debt obligations of domestic banks and
foreign branches of domestic banks and U.S. branches of foreign banks,
which at the time of their most recent annual financial statements show
assets in excess of $5 billion;
o certificates of deposit, time deposits and other short-term debt
obligations of domestic savings and loan associations, which at the time
of their most recent annual financial statements show assets in excess
of $1 billion;
o repurchase agreements covering government securities, certificates of
deposit, commercial paper or bankers' acceptances;
o variable amount floating rate notes; and
o debt securities issued by a corporation.
The Money Market Fund may enter into transactions in options, futures contracts
and options on futures, contracts on United States Treasury securities.
Under the Money Market Fund's investment policy, money market instruments and
other short-term debt securities means securities that have a remaining term to
maturity of up to 13 months (25 months in the case of government securities).
The dollar-weighted average maturity of the securities held by the Money Market
Fund will not exceed 90 days.
The securities in the Money Market Fund must meet the following quality
requirements --
o All of the securities held by the Money Market Fund must have received
(or be of comparable quality to securities which have received), at the
time of the purchase, a rating in one of the two highest categories by
any two nationally recognized statistical rating agencies; and
o At least 95% of the securities held by the Money Market Fund must have
received (or be of comparable quality to securities which have
received), at the time of purchase, a rating in the highest category by
any two such rating agencies.
The Board of Directors of the Investment Company must approve or ratify the
purchase of any security (other than any U.S. government security) that has not
received a rating or that has been rated by only one rating agency. The Fund
will sell any securities that are subsequently downgraded below the two highest
categories as soon as practicable, unless the Board of Directors determines that
sale of those securities would not be in the best interests of the Fund.
The Money Market Fund will not invest more than 5% of its total assets in
securities of, or subject to puts from, any one issuer (other than U.S.
government securities and repurchase agreements fully collateralized by U.S.
government securities) provided that (a) the Fund may invest up to 10% of its
total assets in securities issued or guaranteed by a single issuer with respect
to which the Fund has purchased an unconditional put and (b) with respect to 25%
of its total assets the Fund may, with respect to securities meeting the highest
investment criteria, exceed the 5% limit for up to three business days.
4
<PAGE>
Additional Investment Strategies
--------------------------------------------------------------------------------
Lending of Securities
The Funds have the authority to lend their securities, under the conditions
described below. The Funds will not lend any securities until the Investment
Company's Board of Directors approves a form of securities lending agreement.
Refer to "Fundamental Investment Restrictions", paragraph 9, and
"Non-Fundamental Investment Policies", paragraph 9, for descriptions of the
fundamental and current restrictions on lending by the Funds.
A Fund may lend its securities, constituting up to 30% of its total assets, to
brokers, dealers and financial institutions, other than any affiliate of the
Investment Company. A Fund may pay reasonable fees to persons unaffiliated with
the Fund for services or for arranging such loans.
Upon lending securities, a Fund must receive as collateral cash, securities
issued or guaranteed by the United States Government or its agencies or
instrumentalities, or letters of credit of certain banks selected by the
Adviser. The collateral amount at all times while the loan is outstanding must
be maintained in amounts equal to at least 100% of the current market value of
the loaned securities.
The Fund will continue to receive interest or dividends on the securities lent.
In addition, it will receive a portion of the income generated by the short-term
investment of cash received as collateral, or, alternatively, where securities
or a letter of credit are used as collateral, a lending fee paid directly to the
Fund by the borrower of the securities. A Fund will have the right to terminate
a securities loan at any time. The Fund will have the right to regain record
ownership of loaned securities in order to exercise beneficial rights, such as
voting rights or subscription rights.
Loans of securities will be made only to firms that the Adviser deems
creditworthy. There are risks of delay in recovery and even loss of rights in
the collateral, however, if the borrower of securities defaults, becomes the
subject of bankruptcy proceedings or otherwise is unable to fulfill its
obligations or fails financially.
Repurchase Agreements
The Funds have the authority to enter into repurchase agreements. A Fund may not
invest more than 10% of its total assets in repurchase agreements or time
deposits that mature in more than seven days. The Funds will not enter into any
repurchase agreements until the Investment Company's Board of Directors approves
a form of Repurchase Agreement and authorizes entities as counterparties.
Under a repurchase agreement, a Fund acquires underlying debt instruments for a
relatively short period (usually not more than one week and never more than one
year) subject to an obligation of the seller to repurchase (and the Fund to
resell) the instrument at a fixed price and time, thereby determining the yield
during the Fund's holding period. This results in a fixed rate of return
insulated from market fluctuation during such period. Accrued interest on the
underlying security will not be included for purposes of valuing a Fund's
assets.
Repurchase agreements have the characteristics of loans by a Fund and will be
fully collateralized (either with physical securities or evidence of book entry
transfer to the account of the custodian bank) at all times. During the term of
the repurchase agreement, the Fund retains the security subject to the
repurchase agreement as collateral securing the seller's repurchase obligation,
continually monitors the market value of the security subject to the agreement
and requires the Fund's seller to deposit with the Fund additional collateral
equal to any amount by which the market value of the security subject to the
repurchase agreement falls below the resale amount provided under the repurchase
agreement.
The Funds will enter into repurchase agreements only with member banks of the
Federal Reserve System and with dealers in U.S. Government securities whose
creditworthiness has been reviewed and found satisfactory by the Adviser and the
Board of Directors of the Investment Company.
Securities underlying repurchase agreements will be limited to certificates of
deposit, commercial paper, bankers' acceptances, or obligations issued or
guaranteed by the United States Government or its agencies or instrumentalities,
in which the Funds may otherwise invest.
A seller of a repurchase agreement could default and not repurchase from a Fund
the security that is the subject of the agreement. The Fund would look to the
collateral underlying the seller's repurchase agreement, including the
securities subject to the repurchase agreement, for satisfaction of the seller's
obligation to the Fund. In such event, the Fund might incur disposition costs in
liquidating the collateral and might suffer a loss if the value of
5
<PAGE>
the collateral declines. There is a risk that if the issuer of the repurchase
agreement becomes involved in bankruptcy proceedings, the Fund might be delayed
or prevented from liquidating the underlying security or otherwise obtaining it
for its own purposes, if the Fund did not have actual or book entry possession
of the security.
Rule 144A Investments, Section 4(2) Commercial Paper and Illiquid Securities
Each Fund, with respect to not more than 10% of its total assets, may purchase
securities that are not readily marketable, or are "illiquid". Repurchase
agreements of more than seven days' duration and variable and floating rate
demand notes not requiring receipt of the principal note amount within seven
days' notice are considered illiquid. A Fund may incur higher transaction costs
and require more time to complete transactions for the purchase and sale of
illiquid securities than for readily marketable securities. When a Fund
determines to sell an illiquid security within a relatively short time period,
it may have to accept a lower sales price than if the security were readily
marketable. Refer to "Non-Fundamental Investment Policies", paragraph 10.
The Adviser will make a factual determination as to whether securities with
contractual or legal restrictions on resale purchased by a Fund are liquid,
based on the frequency of trades and quotes, the number of dealers and potential
purchasers, dealer undertakings to make a market, and the nature of the security
and the marketplace, pursuant to procedures adopted by the Board of Directors of
the Investment Company.
Securities that are eligible for purchase and sale under Rule 144A of the
Securities Act of 1933 (the 1933 Act) shall be considered liquid, provided the
Adviser has not made a contrary determination regarding liquidity in accordance
with the Board's procedures. Rule 144A permits certain qualified institutional
buyers to trade in securities even though the securities are not registered
under the 1933 Act. In addition, commercial paper privately placed in accordance
with Section 4(2) of the 1933 Act also will be considered liquid, provided the
requirements set forth in the Board's procedures are satisfied.
Options and Futures Contracts
Each of the Funds may purchase and sell options and futures contracts, as
described below. Refer to "Non-Fundamental Investment Restrictions" below,
paragraph 1, for a description of the current restrictions on the Funds'
purchase of options and futures contracts.
Each Fund may sell a call option contract on a security it holds in its
portfolio (called a covered call), and it may buy a call option contract on the
security to close out a position created by the sale of a covered call.
o A call option is a short-term contract (generally having a duration of
nine months or less) which gives the purchaser of the option the right
to purchase the underlying security at a fixed exercise price at any
time prior to the expiration of the option regardless of the market
price of the security during the option period. As consideration for
writing a covered call option, a Fund (the seller) receives from the
purchaser a premium, which the Fund retains whether or not the option is
exercised.
o The seller of the call option has the obligation, upon the exercise of
the option by the purchaser, to sell the underlying security at the
exercise price at any time during the option period. The selling of a
call option will benefit a Fund if, over the option period, the
underlying security declines in value or does not appreciate above the
aggregate of the exercise price and the premium. However, the Fund risks
an "opportunity loss" of profits if the underlying security appreciates
above the aggregate value of the exercise price and the premium.
Each Fund may buy a put option contract on a security it holds in its portfolio,
and it may sell a put option contract on the security to close out a position
created by the purchase of the put option contract.
o A put option is a similar short-term contract that gives the purchaser
of the option the right to sell the underlying security at a fixed
exercise price at any time prior to the expiration of the option
regardless of the market price of the security during the option period.
As consideration for the put option, a Fund (the purchaser) pays the
seller a premium, which the seller retains whether or not the option is
exercised. The seller of the put option has the obligation, upon the
exercise of the option by the purchaser, to purchase the underlying
security at the exercise price at any time during the option period. The
buying of a covered put contract limits the downside exposure for the
investment in the underlying security to the combination of the exercise
price less the premium paid.
6
<PAGE>
o The risk of purchasing a put is that the market price of the underlying
stock prevailing on the expiration date may be above the option's
exercise price. In that case the option would expire worthless and the
entire premium would be lost.
Each Fund may purchase and sell futures contracts, and purchase options on
futures contracts, on fixed-income securities or on an index of securities, such
as the Standard & Poor's 100 Index, the Standard & Poor's 500 Index or the New
York Stock Exchange Composite Index.
o A futures contract on fixed income securities requires the seller to
deliver, and the purchaser to accept delivery of, a stated quantity of a
given type of fixed income security for a fixed price at a specified
time in the future. A futures contract or option on a stock index
provides for the making and acceptance of a cash settlement equal to the
change in value of a hypothetical portfolio of stocks between the time
the contract is entered into and the time it is liquidated, times a
fixed multiplier. Futures contracts may be traded domestically only on
exchanges which have been designated as "contract markets" by the
Commodity Futures Trading Commission, such as the Chicago Board of
Trade.
o An option on a futures contract provides the purchaser with the right,
but not the obligation, to enter into a "long" position in the
underlying futures contract (in the case of a call option on a futures
contract), or a "short" position in the underlying futures contract (in
the case of a put option on a futures contract), at a fixed price up to
a stated expiration date. Upon exercise of the option by the holder, the
contract market clearing house establishes a corresponding short
position for the writer of the option, in the case of a call option, or
a corresponding long position in the case of a put option. In the event
that an option is exercised, the parties are subject to all of the risks
associated with the trading of futures contracts, such as payment of
margin deposits.
o A Fund does not pay or receive a payment upon its purchase or sale of a
futures contract. Initially, a Fund will be required to deposit with the
Fund's custodian in the broker's name an amount of cash or U.S. Treasury
bills equal to approximately 5% of the contract amount. This amount is
known as "initial margin."
o While a futures contract is outstanding, there will be subsequent
payments, called "maintenance margin", to and from the broker. These
payments will be made on a daily or intraday basis as the price of the
underlying instrument or stock index fluctuates making, the long and
short positions in the futures contract more or less valuable. This
process is known as "mark to market." At any time prior to expiration of
the futures contract, a Fund may elect to close the position by taking
an opposite position, which will operate to terminate the Fund's
position in the futures contract and may require additional transaction
costs. A final determination of margin is then made, additional cash is
required to be paid by or released to the Fund, and the Fund realizes a
loss or a gain.
A Fund may use futures contracts to protect against general increases or
decreases in the levels of securities prices, in the manner described below.
o When a Fund anticipates a general decrease in the market value of
portfolio securities, it may sell futures contracts. If the market value
falls, the decline in the Fund's net asset value may be offset, in whole
or in part, by corresponding gains on the futures position.
* A Fund may sell futures contracts on fixed-income securities in
anticipation of a rise in interest rates, that would cause a decline
in the value of fixed-income securities held in the Fund's portfolio.
* A Fund may sell stock index futures contracts in anticipation of a
general market wide decline that would reduce the value of its
portfolio of stocks.
o When a Fund projects an increase in the cost of fixed-income securities
or stocks to be acquired in the future, the Fund may purchase futures
contracts on fixed-income securities or stock indexes. If the hedging
transaction is successful, the increased cost of securities subsequently
acquired may be offset, in whole or in part, by gains on the futures
position.
o Instead of purchasing or selling futures contracts, a Fund may purchase
call or put options on futures contracts in order to protect against
declines in the value of portfolio securities or against increases in
the cost of securities to be acquired.
7
<PAGE>
* Purchases of options on futures contracts may present less risk in
hedging a portfolio than the purchase and sale of the underlying
futures contracts, since the potential loss is limited to the amount
of the premium paid for the option, plus related transaction costs.
* As in the case of purchases and sales of futures contracts, a Fund
may be able to offset declines in the value of portfolio securities,
or increases in the cost of securities acquired, through gains
realized on its purchases of options on futures.
o The Funds also may purchase put options on securities or stock indexes
for the same types of securities for hedging purposes. The purchase of a
put option on a security or stock index permits a Fund to protect
against declines in the value of the underlying security or securities
in a manner similar to the sale of futures contracts.
o In addition, the Funds may write call options on portfolio securities or
on stock indexes for the purpose of increasing their returns and/or to
protect the value of their portfolios.
* When a Fund writes an option which expires unexercised or is closed
out by the Fund at a profit, it will retain the premium paid for the
option, less related transaction costs, which will increase its gross
income and will offset in part the reduced value of a portfolio
security in connection with which the option may have been written.
* If the price of the security underlying the option moves adversely to
the Fund's position, the option may be exercised and the Fund will be
required to sell the security at a disadvantageous price, resulting
in losses which may be only partially offset by the amount of the
premium.
* A call option on a security written by a Fund will be covered through
ownership of the security underlying the option or through ownership
of an absolute and immediate right to acquire such security upon
conversion or exchange of other securities held in its portfolio.
Risks in futures and options transactions include the following:
o There may be a lack of liquidity, which could make it difficult or
impossible for a Fund to close out existing positions and realize gains
or limit losses.
The liquidity of a secondary market in futures contracts or options on
futures contracts may be adversely affected by "daily price fluctuation
limits," established by the exchanges on which such instruments are
traded, which limit the amount of fluctuation in the price of a contract
during a single trading day. Once the limit in a particular contract has
been reached, no further trading in such contract may occur beyond such
limit, thus preventing the liquidation of positions, and requiring
traders to make additional variation margin payments. Market liquidity
in options, futures contracts or options on futures contracts may also
be adversely affected by trading halts, suspensions, exchange or
clearing house equipment failures, government intervention, insolvency
of a brokerage firm or clearing house or other disruptions of normal
trading activity.
o The securities held in a Fund's portfolios may not exactly duplicate the
security or securities underlying the options, futures contracts or
options on futures contracts traded by the Fund, and as a result the
price of the portfolio securities being hedged will not move in the same
amount or direction as the underlying index, securities or debt
obligation.
o A Fund purchasing an option may lose the entire amount of the premium
plus related transaction costs.
o For options on futures contracts, changes in the value of the underlying
futures contract may not be fully reflected in the value of the option.
o With respect to options and options on futures contracts, the Funds are
subject to the risk of market movements between the time that the option
is exercised and the time of performance thereunder.
o In writing a covered call option on a security or a stock index, a Fund
may incur the risk that changes in the value of the instruments used to
cover the position will not correlate precisely with changes in the
value of the option or underlying the index or instrument.
o The opening of a futures position and the writing of an option are
transactions that involve substantial leverage. As a result, relatively
small movements in the price of the contract can result in substantial
unrealized gains or losses.
8
<PAGE>
Additional Information about Specific Types of Securities
--------------------------------------------------------------------------------
Non-Investment Grade Securities
The Bond Fund may purchase non-investment grade debt securities. In addition,
the Bond Fund and the other Funds that purchase debt securities may hold a
security that becomes non-investment grade as a result of impairments of the
issuer's credit.
Fixed-income securities that are rated in the lower rating categories of the
nationally recognized rating services (Ba or lower by Moody's and BB or lower by
Standard & Poor's), or unrated securities of comparable quality, are commonly
known as non-investment grade securities or "junk bonds". Junk bonds are
regarded as being predominantly speculative as to the issuer's ability to make
payments of principal and interest. Investment in non-investment grade
securities involves substantial risk. Junk bonds may be issued by less
creditworthy companies or by larger, highly leveraged companies, and are
frequently issued in corporate restructurings, such as mergers and leveraged
buy-outs. Such securities are particularly vulnerable to adverse changes in the
issuer's industry and in general economic conditions. Junk bonds frequently are
junior obligations of their issuers, so that in the event of the issuer's
bankruptcy, claims of the holders of junk bonds will be satisfied only after
satisfaction of the claims of senior security holders.
Non-investment grade bonds tend to be more volatile than higher-rated
fixed-income securities, so that adverse economic events may have a greater
impact on the prices of junk bonds than on higher-rated fixed-income securities.
Junk bonds generally are purchased and sold through dealers who make a market in
such securities for their own accounts. However, there are fewer dealers in the
non-investment grade bond market, and the market may be less liquid than the
market for higher-rated fixed-income securities, even under normal economic
conditions. Also, there may be significant disparities in the prices quoted for
junk bonds by various dealers. Adverse economic conditions or investor
perceptions (whether or not based on economic fundamentals) may impair the
liquidity of this market, and may cause the prices that a Fund may receive for
any non-investment grade bonds to be reduced, or might cause a Fund to
experience difficulty in liquidating a portion of its portfolio.
The Investment Company currently anticipates than no Fund will invest more than
5% of its total assets in non-investment grade debt securities, although a Fund
may hold a larger percentage if investment grade securities have been downgraded
after purchase by the Fund.
U.S. Government and U.S. Government Agency Obligations
All of the Funds may invest in U.S. Government and U.S. Government agency
obligations. Some of these securities also may be considered money market
instruments. Some also may be mortgage-backed securities or zero coupon
securities.
U.S. Government Obligations: These securities are issued or guaranteed as to
principal and interest by the United States Government. They include a variety
of Treasury securities, which differ only in their interest rates, maturities
and times of issuance. Treasury bills have a maturity of one year or less.
Treasury notes at the time of issuance have maturities of one to seven years and
Treasury bonds generally have a maturity of greater than five years.
U.S. Government Agency Obligations: Agencies of the United States Government
that issue or guarantee obligations include, among others, Export-Import Bank of
the United States, Farmers Home Administration, Federal Housing Administration,
Government National Mortgage Association, Student Loan Marketing Association,
Maritime Administration, Small Business Administration and the Tennessee Valley
Authority. Instrumentalities of the United States Government that issue or
guarantee obligations include, among others, Federal Farm Credit Banks, Federal
National Mortgage Association, Federal Home Loan Banks, Federal Home Loan
Mortgage Corporation, Federal Intermediate Credit Banks, Federal Land Banks and
Banks for Cooperatives.
Some of the securities issued by U.S. Government agencies and instrumentalities
are supported by the full faith and credit of the U.S. Treasury; others are
supported by the right of the issuer to borrow from the Treasury, while others
are supported only by the credit of the instrumentality that issued the
obligation.
Money Market Instruments
All of the Funds may purchase money market instruments, which include the
following.
Certificates of Deposit. Certificates of deposit are generally short term,
interest-bearing negotiable certificates issued by banks or savings and loan
associations against funds deposited in the issuing institution.
9
<PAGE>
Time Deposits. Time deposits are deposits in a bank or other financial
institution for a specified period of time at fixed interest rate, for which no
negotiable certificate is received.
Bankers' Acceptance. A bankers' acceptance is a draft drawn on a commercial bank
by a borrower usually in connection with an international commercial transaction
(to finance the import, export, transfer or storage of goods). The borrower is
liable for payment as well as the bank, which unconditionally guarantees to pay
the draft at its face amount on the maturity date. Most acceptances have
maturities of six months or less and are traded in secondary markets prior to
maturity.
Commercial Paper. Commercial paper refers to short-term, unsecured promissory
notes issued by corporations to finance short-term credit needs. Commercial
paper is usually sold on a discount basis and has a maturity at the time of
issuance not exceeding nine months.
Variable Amount Floating Rate Notes. Variable floating rate notes are
short-term, unsecured promissory notes issued by corporations to finance
short-term credit needs. These are interest-bearing notes on which the interest
rate generally fluctuates on a weekly basis.
Corporate Debt Securities. Corporate debt securities with a remaining maturity
of less than one year tend to become extremely liquid and are traded as money
market securities.
Treasury Bills. See "U.S. Government and U.S. Government Agency Obligations"
above.
Because the Money Market Fund and the other Funds generally will purchase only
money market instruments that are rated high quality and have short terms to
maturity, these money market instruments are considered to have low levels of
market risk and credit risk.
Zero Coupon Securities And Discount Notes; Redeemable Securities
The Bond Fund, and the All America Fund to the extent it invests in fixed income
securities, may invest in discount notes and zero coupon securities. Discount
notes mature in one year or less from the date of issuance. Zero coupon
securities may be issued by corporations or by certain U.S. Government agencies.
Discount notes and zero coupon securities do not pay interest. Instead, they are
issued at prices that are discounted from the principal (par) amount due at
maturity. The difference between the issue price and the principal amount due at
maturity (or the amount due at the expected redemption date in some cases if the
securities are callable) is called "original issue discount". A Fund must accrue
original issue discount as income, even if the Fund does not actually receive
any payment under the security during the accrual period. The purchase price
paid for zero coupon securities at the time of issuance, or upon any subsequent
resale, reflects a yield-to-maturity required by the purchaser from the purchase
date to the maturity date (or expected redemption date).
Zero coupon securities and discount notes may fluctuate more in market value and
be more difficult for a Fund to resell during periods of interest rate changes
in the economy than comparable securities that pay interest in cash at regular
intervals. The market values of outstanding debt securities generally decline
when interest rates are rising, and during such periods a Fund may lose more
investment capital if it sells zero coupon securities prior to their maturity
date or expected redemption date than if it sells comparable interest-bearing
securities. In general, the longer the remaining term to maturity or expected
redemption of a security, the greater the impact on market value from rising
interest rates.
Foreign Securities and American Depositary Receipts (ADRs)
In addition to investing in domestic securities, each of the Funds other than
the Equity Index Fund, Mid-Cap Equity Index Fund and the Money Market Fund, may
invest in securities of foreign issuers, including securities traded outside the
United States. Foreign issues guaranteed by domestic corporations are considered
to be domestic securities.
Each of the Funds, other than the Money Market Fund and Bond Fund, may invest in
ADRs, which are dollar-denominated receipts issued generally by domestic banks
and representing the deposit with the bank of a security of a foreign issuer.
ADRs are publicly traded on exchanges or over-the-counter in the United States.
The Investment Company has a non-fundamental investment restriction that limits
foreign securities, including foreign exchange transactions, and ADRs to 25% of
a Fund's total assets. (See "Non-Fundamental Investment Policies", paragraph 2.)
The Investment Company currently anticipates that no Fund will invest more than
10% of its total assets in foreign securities or foreign exchange transactions.
10
<PAGE>
The Investment Company will consider special factors before investing in foreign
securities and ADRs. These include:
o changes in currency rates or currency exchange control regulations,
o the possibility of expropriation,
o the unavailability of financial information or the difficulty of
interpreting financial information prepared under foreign accounting
standards,
o less liquidity and more volatility in foreign securities markets (not
applicable to ADRs),
o the impact of political, social or diplomatic developments, and
o the difficulty of assessing economic trends in foreign countries.
The Funds could encounter greater difficulties in bringing legal processes
abroad that would be encounter in the United States. In addition, transaction
costs in foreign securities may be higher.
Convertible Securities
The Bond Fund, as well as the All America and Aggressive Equity Funds to the
extent they invest in debt securities, may invest in convertible debt
securities. Convertible securities can be converted by the holder into common
stock of the issuer, at the price and on the terms set forth by the issuer when
the convertible securities are initially sold. Convertible securities normally
provide a higher yield than the underlying stock but a lower yield than a
fixed-income security without the convertibility feature. The price of the
convertible security normally will vary to some degree with changes in the price
of the underlying stock, although the higher yield tends to make the convertible
security less volatile than the underlying common stock. The price of the
convertible security also will vary to some degree inversely with interest
rates.
Equipment Trust Certificates
The Bond Fund may invest in equipment trust certificates. The proceeds of those
certificates are used to purchase equipment, such as railroad cars, airplanes or
other equipment, which in turn serve as collateral for the related issue of
certificates.
The equipment subject to a trust generally is leased by a railroad, airline or
other business, and rental payments provide the projected cash flow for the
repayment of the equipment trust certificates. Holders of equipment trust
certificates must look to the collateral securing the certificates, and any
guarantee provided by the lessee or any parent corporation for the payment of
lease amounts, in the case of default in the payment of principal and interest
on the certificates.
The Investment Company currently has a non-fundamental investment policy that no
Fund will invest more than 5% of its total assets in equipment trust
certificates.
Asset-Backed Securities
The Bond Fund may invest in securities backed by consumer or credit card loans
or other receivables or may purchase interests in pools of such assets.
Changes in interest rates may significantly affect the value of these
securities, and prepayment rates will impact the yield and price of the
securities. A decline in interest rates may result in increases in prepayment,
and a Fund will have to invest prepayment proceeds at the prevailing lower
interest rates. Asset-backed securities generally are not expected to prepay to
the same extent as mortgage-backed securities in such circumstances. An increase
in interest rates may result in prepayment at a rate slower than was assumed
when the security was purchased. The creditworthiness of an issuer of
asset-backed securities also may impact the value of they securities.
The Investment Company currently has a non-fundamental investment policy that no
Fund will:
o invest more than 10% of its total assets in asset-backed securities,
o invest in interest-only strips or principal-only strips of asset-backed
securities, or
o purchase the most speculative series or class of asset-backed securities
issues.
11
<PAGE>
Mortgage-Backed Securities
The Bond Fund, as well as the All America and Aggressive Equity Funds to the
extent they invest in debt securities, may invest in mortgage-backed securities.
You should refer to the discussion of Mortgage-Backed Securities in the
Prospectus under "Details about How Our Funds Invest and Related Risks --
Specific Investments or Strategies and Related Risks".
The Investment Company currently has a non-fundamental investment policy that no
Fund will:
o if the Fund invests primarily in fixed income securities, invest more
than 10% of its total assets in mortgage-backed securities that are not
also considered to be U.S. Government or U.S. Government agency
securities,
o if the Fund invests primarily in equity securities, invest in
mortgage-backed securities unless they are also considered to be U.S.
Government Securities,
o invest in interest-only strips or principal-only strips of
mortgage-backed securities, or
o purchase the most speculative class or series of collateralized mortgage
obligation issues or other mortgage-backed securities issues.
Warrants
The All America Fund and Bond Fund may acquire warrants. A warrant is an option
to purchase common stock of an issuer and is issued in conjunction with another
security, such as a debt obligation. A warrant specifies the price at which the
holder may purchase shares of common stock and usually expires after a period of
time. A warrantholder generally may pay cash for the common stock to be
purchased or may surrender principal amount of the related debt security the
warrantholder owns equal to the purchase price for the stock.
The common stock underlying a warrant may not increase in value after the date
the warrant was issued, or may not increase up to the warrant exercise price. In
this case, the warrant generally would have little value and could expire
unexercised.
The Investment Company currently has a non-fundamental investment policy that no
Fund will invest more than 5% of its assets in warrants.
Preferred Stock
The All America Fund and Bond Fund may purchase preferred stock. A corporation
may issue a form of equity security called preferred stock. Compared to common
stock, preferred stock has advantages in the receipt of dividends and in the
receipt of the corporation's assets upon liquidation. Preferred stockholders,
however, usually do not have voting rights at meetings of the corporation's
shareholders.
An issuer of preferred stock must pay a dividend to holders of preferred stock
before it distributes a dividend to holders of common stock. When a corporation
issues preferred stock, it sets a dividend rate, or a formula to determine the
rate. If a corporation does not have sufficient earnings to pay the specified
dividend to preferred stockholders, the unpaid dividend may accrue (cumulate)
and become payable when the corporation's earnings increase. Bondholders, in
contrast, are entitled to receive interest and principal due, regardless of the
issuer's earnings.
Some issues of preferred stock give the holder the right to convert the
preferred stock into shares of common stock, when certain conditions are met. A
holder of preferred stock that is not convertible, or of preferred stock that is
convertible but has not met the conditions for conversion, does not share in the
earnings of the issuer other than through the receipt of dividends on the
preferred stock. The market value of convertible preferred stock generally
fluctuates more than the market value of nonconvertible preferred stock, because
the value of the underlying common stock will affect the price of the
convertible stock.
Preferred stock has the risk that a corporation may not have earnings from which
to pay the dividends as they become due. Even if a corporation is paying
dividends, if the dividend rate is fixed (and not variable), changes in interest
rates generally will affect the market value of the preferred stock in the same
manner as for debt obligations.
The Investment Company presently has a non-fundamental investment policy that no
Fund will invest more than 10% of its assets in preferred stock.
12
<PAGE>
FUNDAMENTAL INVESTMENT RESTRICTIONS
The following investment restrictions are fundamental policies. The Funds may
not change these policies unless a majority of the outstanding voting shares of
each affected Fund approves the change. No Fund will:
1. underwrite the securities issued by other companies, except to the extent
that the Fund's purchase and sale of portfolio securities may be deemed to
be an underwriting;
2. purchase physical commodities or contracts involving physical commodities;
3. based on its investments in individual issuers, be non-diversified as
defined under the 1940 Act and in addition the Money Market Fund will not
invest in any securities that would cause it to fail to comply with
applicable diversification requirements for money market funds under the
1940 Act and rules thereunder, as amended from time to time;
4. based on its investment in an issuer's voting securities, be
non-diversified as defined under the 1940 Act, as amended from time to
time.
5. issue senior securities, except as permitted under the 1940 Act and the
rules thereunder as amended from time to time;
6. invest more than 25% of its total assets in the securities of issuers in
one industry, other than securities issued or guaranteed by the U.S.
Government or its agencies or instrumentalities, except that the Money
Market Fund may invest more than 25% of its total assets in instruments
issued by U.S. banks.
7. purchase real estate or mortgages directly, but a Fund may invest in
mortgage-backed securities and may purchase the securities of companies
whose businesses deal in real estate or mortgages, including real estate
investment trusts;
8. borrow money, except to the extent permitted by the 1940 Act and rules
thereunder, as amended from time to time; or
9. lend assets to other persons, except to the extent permitted by the 1940
Act, the rules thereunder and applicable SEC guidelines, as amended from
time to time, or pursuant to any exemptive relief granted by the SEC.
Current 1940 Act provisions applicable to fundamental investment restriction #3
above: The 1940 Act and rules thereunder currently restrict a Fund, with respect
to 75% of the value of its total assets, from investing more than 5% of its
total assets in the securities of any one issuer, other than (i) securities
issued or guaranteed by the United States Government or its agencies or
instrumentalities ("U.S. Government Securities"), and (ii) securities of other
registered investment companies;
Current 1940 Act provisions applicable to fundamental investment restriction #4
above: The 1940 Act and rules thereunder currently restrict a Fund, with respect
to 75% of the value of its total assets, from purchasing more than 10% of the
outstanding voting securities of any one issuer other than (i) U.S. Government
Securities, and (ii) securities of other registered investment companies, and
imposes additional restrictions on the Money Market Fund.
Current 1940 Act provisions applicable to fundamental investment restriction #8
above: The 1940 Act and rules thereunder currently limit a Fund's borrowing to
331/3% of total assets (including the amount borrowed) minus liabilities (other
than borrowings) and require the reduction of any excess borrowing within three
business days.
Current 1940 Act provisions applicable to fundamental investment restriction #9
above: The 1940 Act and rules thereunder currently limit a Fund's lending to
331/3% of its total assets, with a Fund's entry into repurchase agreements or
the purchase of debt securities not being considered the making of a loan for
this purpose.
13
<PAGE>
NON-FUNDAMENTAL INVESTMENT POLICIES
The following investment restrictions are not fundamental policies. They may be
changed without shareholder approval by a vote of the Board of Directors of the
Investment Company, subject to any limits imposed by the 1940 Act or applicable
regulatory authorities and subject to each Fund's investment objectives
permitted investments. No Fund will:
1. purchase or sell options or futures contracts or options on futures
contracts unless the options or contracts relate to U.S. issuers or U.S.
stock indexes and are not for speculation, and in addition (i) a Fund may
write only covered call options and may buy put options only if it holds
the related securities, (ii) a Fund may invest in futures contracts to
hedge not more than 20% of its total assets, and (iii) premiums paid on
outstanding options contracts may not exceed 5% of the Fund's total assets;
2. invest in foreign exchange nor invest more that 25% of its total assets in
securities of foreign issuers and American Depositary Receipts (ADRs);
3. invest for the purpose of exercising control over management of an issuer
(either separately or together with any other Funds);
4. make short sales, except when the Fund owns or has the right to obtain
securities of equivalent kind and amount that will be held for as long as
the Fund is in a short position;
5. if its investment policy is to invest primarily in equity securities,
purchase mortgage-backed securities unless they are also U.S. Government
Securities, or if its investment policy is to invest primarily in fixed
income securities, invest more than 10% of its total assets in
mortgage-backed securities that are not also U.S. Government Securities;
6. invest in the securities of any registered investment company except as
permitted under the Investment Company Act of 1940 and the rules
thereunder, as amended from time to time, or by any exemptive relief
granted by the SEC;
7. purchase securities on margin, except that credits for the clearance of
portfolio transactions and the making of margin payments for futures
contracts and options on futures contracts shall not constitute the
purchasing of securities on margin;
8. borrow money except for temporary or emergency purposes (not for investment
or leveraging) or under any reverse repurchase agreement, provided that a
Fund's aggregate borrowings may not exceed 10% of the value of the Fund's
total assets and it may not purchase additional securities if its
borrowings exceed that limit;
9. lend more than 10% of its assets;
10. invest more than 10% of its total assets in securities that are considered
to be illiquid because they are subject to legal or contractual
restrictions on resale or are otherwise not readily marketable, including
repurchase agreements and time deposits that do not mature within seven
days but excluding Rule 144A securities and other restricted securities
that are determined to be liquid pursuant to procedures adopted by the
Board of Directors;
11. invest more than 5% of its total assets in equipment trust certificates;
12. invest more than 10% of its total assets in asset-backed securities or
purchase the most speculative series or class of asset-backed securities
issues;
13. purchase the most speculative series or class of collateralized mortgage
obligation issues or other mortgage-backed securities issues;
14. invest in interest-only strips or principal only strips of asset-backed
securities, mortgage-backed securities or other debt securities;
15. invest more than 5% of its assets in warrants; or
16. invest more than 10% of its assets in preferred stock.
14
<PAGE>
MANAGEMENT OF THE INVESTMENT COMPANY
The Directors of the Investment Company consist of five individuals, four of
whom are not "interested persons" of the Investment Company as defined in the
Investment Company Act of 1940. The Directors of the Investment Company are
responsible for the overall supervision of the operations of the Investment
Company and perform the various duties imposed on the directors of investment
companies by the Investment Company Act of 1940. The Board of Directors elects
officers of the Investment Company annually.
The Directors and Officers of the Investment Company and their principal
employment are as follows:
<TABLE>
<CAPTION>
Position Held With Principal Occupations
Name, Address And Age Investment Company During Past Five Years
--------------------- ------------------ ----------------------
<S> <C> <C>
Kevin M. Kearney, age 47 Director Partner, Wingate, Kearney & Cullen
32 Court Street (law firm).
Brooklyn, NY 11201
Dolores J. Morrissey*, age 72 Chairman of the President and Chief Executive Officer of
320 Park Avenue Board, President and Mutual of America Securities Corporation
New York, NY 10022 Director ("Distributor") since August 1996;
Executive Vice President and Assistant to the
President of the Adviser from March 1996 to
December 1996; prior thereto, President and
Chief Executive Officer of the Adviser.
John T. Sharkey, age 63 Director Chairman and Chief Executive Officer,
320 Park Avenue Kane, Saunders & Smart; prior thereto,
New York, NY 10022 Vice President -- Corporate National
Accounts, MCI Communications.
John R. Silber, age 73 Director Chancellor, Boston University.
147 Bay State Road
Boston, MA 02215
Stanley Shmishkiss, age 81 Director Shmishkiss Associates; Chairman Emeritus
P.O. Box 909 of the Board of Trustees of the American
Lynn, MA 01904 Cancer Society Foundation.
Patrick J. Waide, Jr., age 62 Director Retired; Past President, The Drucker
320 Park Avenue Foundation; Chief Operating Officer, Sullivan
New York, New York & Company, New York, New York from
September 1996 to December 1998; prior
thereto, Executive Vice President and Chief
Financial Officer of the Bessemer Group,
Inc., and Senior Vice President and Chief
Financial Officer of Bessemer Securities.
Manfred Altstadt, age 51 Senior Executive Vice Senior Executive Vice President and Chief
320 Park Avenue President and Financial Officer, Mutual of America Life New
York, NY 10022 Treasurer and American Life.
Patrick A. Burns, age 53 Senior Executive Vice Senior Executive Vice President and
320 Park Avenue President, General Counsel General Counsel of the Adviser, Mutual of
New York, NY 10022 America Life and American Life.
John Greed, age 40 Executive Vice President Executive Vice President and Treasurer,
320 Park Avenue and Chief Financial Officer Mutual of America Life and American Life
New York, NY 10022 since May 1997; Senior Vice President and
Deputy Treasurer from July 1996 to May 1997;
prior thereto, Partner, Arthur Andersen, LLP.
Stanley M. Lenkowicz, age 58 Senior Vice President, Senior Vice President and Deputy General
320 Park Avenue Deputy General Counsel, Mutual of America.
New York, NY 10022 Counsel and Secretary
</TABLE>
-------------
* Ms. Morrissey is an "interested person" within the meaning of the Investment
Company Act.
15
<PAGE>
The officers and directors of the Investment Company own none of its outstanding
shares (as individuals they are not eligible to purchase Fund shares). The
Investment Company has no Audit Committee, and the entire Board of Directors
fulfills the obligations that an Audit Committee would have.
Set forth below is a table showing compensation paid to the directors during
1999. The cost of compensating directors is divided equally among the Funds.
<TABLE>
<CAPTION>
Aggregate Pension or Total Compensation from
Compensation from Retirement Benefits Estimated Investment Company and
Investment Accrued as Part of Benefits Other Investment
Name of Director Company Fund Expenses Upon Retirement Companies in Complex(3)
---------------- ----------------- ------------------ --------------- -----------------------
<S> <C> <C> <C> <C>
Kevin M. Kearney .................... $14,198(2) None None $14,198(2)
Dolores J. Morrissey ................ None(1) None None None(1)
John T. Sharkey ..................... $14,824(2) None None $14,824(2)
Stanley Shmishkiss .................. $16,619(2) None None $16,619(2)
John R. Silber ...................... $16,619(2) None None $16,619(2)
Patrick J. Waide, Jr. ............... $14,824(2) None None $14,824(2)
</TABLE>
-------------
(1) As an employee of an affiliate of the Adviser and an "interested person" of
the Investment Company, Ms. Morrissey serves as director of the Investment
Company and of Mutual of America Investment Corporation without
compensation.
(2) Directors who are not "interested persons" of the Investment Company
received from the Investment Company an annual retainer of $10,000 and a
fee of $1,000 for each Board or Committee meeting attended in 1999 and will
receive an annual retainer of $16,000 and fee of $1,500 for each Board or
committee meeting they attend in 2000. In addition, they receive business
travel and accident insurance and life insurance coverage of $75,000.
(3) Directors who are not interested persons do not serve on the Board of any
other investment company in the same complex as the Investment Company.
At June 30, 2000, Mutual of America Life Insurance Company (Mutual of America
Life) owned 57% of the All America Fund's shares, 86% of the Bond Fund's shares,
4% of the Money Market Fund's shares and 75% of the Equity Index Fund's shares.
Mutual of America Life has the right to vote its shares at any meeting of
shareholders. Based on its ownership of shares on the date of this Statement of
Additional Information, Mutual of America Life will control the outcome of
voting by shareholders of the Equity Index Fund, All America Fund, Bond Fund and
all of the Funds voting together. The address for Mutual of America Life and
American Life, both of which are New York corporations, is 320 Park Avenue, New
York, NY 10022.
INVESTMENT ADVISORY ARRANGEMENTS
Investment Adviser. The Investment Company's investment adviser is Mutual of
America Capital Management Corporation (the Adviser or Capital Management), an
indirect wholly-owned subsidiary of Mutual of America Life. The Adviser's
address is 320 Park Avenue, New York, New York 10022. The Adviser is a
registered investment adviser under the Investment Advisers Act of 1940. The
Adviser provides investment management services to the Investment Company,
Mutual of America Investment Corporation and the General Accounts of Mutual of
America Life and American Life.
The Adviser provides advisory services for the Investment Company's Funds, in
accordance with the Funds' investment policies, objectives and restrictions as
set forth in the Prospectus and this Statement of Additional Information. The
Adviser has delegated some of its advisory responsibilities for a portion of the
All America Fund to the Subadvisers named below. The Adviser's activities are
subject at all times to the supervision and approval of the Investment Company's
Board of Directors.
Under the Investment Advisory Agreement, the Adviser agrees to provide
investment management services to the Investment Company. These services
include:
o performing investment research and evaluating pertinent economic,
statistical and financial data;
o consultation with the Investment Company's Board of Directors and
furnishing to the Investment Company's Board of Directors
recommendations with respect to the overall investment plan;
o implementation of the overall investment plan, including carrying out
decisions to acquire or dispose of investments;
16
<PAGE>
o management of investments;
o reporting to the Investment Company's Board of Directors on a regular
basis on the implementation of the investment plan and the management of
investments;
o maintaining all required records;
o making arrangements for the safekeeping of assets; and
o providing office space facilities, equipment, material and personnel
necessary to fulfill its obligations.
The Adviser is responsible for all expenses incurred in performing the
investment advisory services, including compensation of officers and payment of
office expenses, and for providing investment management services.
Advisory Fees. As compensation for its services to each of the Funds of the
Investment Company, the Funds pay the Adviser a fee at the following annual
rates of net assets, calculated as a daily charge:
Equity Index Fund -- .125%
All America Fund -- .50%
Mid-Cap Equity Index Fund -- .125%
Aggressive Equity Fund -- .85%
Bond Fund -- .45%
Money Market Fund -- .20%
Investment Advisory Fees Paid by Funds to Adviser*
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
Fund 1999 1998 1997
======================================================================================================
<S> <C> <C> <C>
Equity Index* $ 21,648 N/A N/A
------------------------------------------------------------------------------------------------------
All America $318,029 $311,258 $291,620
------------------------------------------------------------------------------------------------------
Bond $121,448 $106,164 $ 94,370
------------------------------------------------------------------------------------------------------
Money Market $ 33,028 $ 8,216 $ 3,930
------------------------------------------------------------------------------------------------------
Total Fees $494,153 $425,638 $389,920
------------------------------------------------------------------------------------------------------
</TABLE>
-------------
* The Equity Index Fund began operations on May 3, 1999.
Other Fund Expenses. Each Fund is responsible for paying its advisory fee and
other expenses incurred in its operation, including:
o brokers' commissions, transfer taxes and other fees relating to the
Fund's portfolio transactions,
o directors' fees and expenses,
o fees and expenses of its independent certified public accountants,
o fees and expenses of its legal counsel,
o the cost of the printing and mailing semi-annual reports to
shareholders, Proxy Statements, Prospectuses, Prospectus Supplements and
Statements of Additional Information,
o the cost of preparation and filing registration statements and
amendments thereto,
o bank transaction charges and custodian's fees,
o any proxy solicitors' fees and expenses,
o SEC filing fees,
o any federal, state or local income or other taxes,
o any membership or licensing fees of the Investment Company Institute and
similar organizations,
o fidelity bond and directors' liability insurance premiums, and
o any extraordinary expenses, such as indemnification payments or damages
awarded in litigation or settlements made.
17
<PAGE>
Expense Reimbursements by the Adviser. The Adviser limits the expenses of each
Fund, other than for brokers' commissions, transfer taxes and other fees
relating to portfolio transactions and extraordinary expenses, to an annual rate
of .85% of the value of net assets of the All America Fund, .70% of the value of
net assets of the Bond Fund, .40% of the value of the net assets of the Money
Market Fund and .325% of the value of the net assets of the Equity Index Fund.
This expense limitation obligation of the Adviser is contractual for 2000 and
will renew each year thereafter unless the Adviser notifies the Investment
Company of its termination at least two weeks prior to the new year. The Adviser
has voluntarily limited the Funds' expenses since the inception of each Fund to
the amounts that are now the contractual limits, and the Adviser could
discontinue any voluntary reimbursement obligation at any time.
Subadvisers For Portion of the All America Fund. For approximately 20% of the
assets of the All America Fund (the Active Assets), the Adviser has entered into
Subadvisory Agreements with Fred Alger Management, Inc. (Alger Management) and
Oak Associates, Ltd. (Oak Associates) (each a Subadviser, and together the
Subadvisers). Each Subadviser is registered as an investment adviser under the
Investment Advisers Act of 1940.
Each of the Subadvisers for its portion of the All America Fund provides
investment advisory services, including research, making recommendations and
regular reports to the Board of Directors of the Investment Company, maintenance
of records, and providing all the office space, facilities, equipment, material
and personnel necessary to fulfill its obligations under the Subadvisory
Agreement. The Subadvisers are subject to the supervision of the Adviser and the
Board of Directors of the Investment Company.
Subadvisory Fees. The Adviser, not the Investment Company, pays the Subadvisers
for advisory services they provide to the portion of the All America Fund they
manage at the following annual rates of net assets, calculated as a daily
charge:
o Fred Alger Management -- .45%
o Oak Associates -- .30%
Fees Paid by Adviser to Subadvisers
For Past Three Years
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
Subadviser 1999 1998 1997
======================================================================================================================
<S> <C> <C> <C>
Fred Alger Management, Inc. $25,923 $25,762 $23,984
----------------------------------------------------------------------------------------------------------------------
Oak Associates, Ltd. $19,346 $18,433 $17,285
----------------------------------------------------------------------------------------------------------------------
Palley-Needelman Asset Management, Inc.* $17,147 $17,917 $17,131
----------------------------------------------------------------------------------------------------------------------
Total $62,416 $62,112 $58,400
----------------------------------------------------------------------------------------------------------------------
</TABLE>
-------------
* A Subadviser until February 1, 2000
Codes of Ethics. The Investment Company, the Adviser, the Subadvisers and the
Securities Corporation have adopted codes of ethics under Rule 17j-1 of the 1940
Act. Persons subject to these codes may not purchase securities in which the
Funds may invest unless their purchases have been precleared in accordance with
the codes and do not occur not within certain black-out periods imposed under
the codes.
ADMINISTRATIVE AGREEMENTS
Accounting and Recordkeeping Agent
The Adviser serves as accounting and recordkeeping agent for the Funds. Under
its Investment Accounting Agreement with the Investment Company, the Adviser
performs accounting and recordkeeping functions related to portfolio
transactions as required by the Investment Company Act, provides the Investment
Company with accounting and related reports on a periodic basis, and calculates
the net asset value of each Fund in the manner described in the Prospectus.
As compensation for its services, the Adviser receives from each Fund a monthly
base fee of $500 plus a monthly minimum fee of $2,000, or if an asset-based fee
of .0225% of the Investment Company net assets would result in a fee greater
than the aggregate of the Fund minimums, the Fund's proportion of the
asset-based fee, and is reimbursed for out-of-pocket expenses it incurs in
performing its services to the Investment Company. The Adviser has entered into
an arrangement with Mutual of America for the provision of investment accounting
and recordkeeping, legal and certain other services in connection with the
Investment Company.
18
<PAGE>
Transfer Agent
State Street Bank and Trust Company (State Street) serves as transfer agent and
dividend disbursing agent for Fund shares. Under its Transfer Agency and Service
Agreement with the Investment Company, State Street is obligated to maintain
shareholder accounts to reflect purchases and redemptions of Fund shares;
prepare and transmit payments for dividends and distributions declared by the
Investment Company; mail proxy materials, shareholder reports and prospectuses
to current shareholders; and prepare and mail account and confirmation
statements for shareholders. State Street's address is P.O. Box 1978, Boston,
Massachusetts 02105, Attn: Mutual Fund Services.
For its services, State Street receives from each Fund a monthly maintenance fee
based on the number of holders of Fund shares, ranging from a minimum of $1,000
per month for 0-15 shareholders to $2,500 per month for 51-200 shareholders, and
a trade processing fee for each trade and is reimbursed for out-of-pocket
expenses.
PORTFOLIO TRANSACTIONS AND BROKERAGE
Selection of Brokers and Dealers
--------------------------------------------------------------------------------
The Adviser and each Subadviser are responsible for decisions to buy and sell
securities for the Funds of the Investment Company for which they provide
services as well as for selecting brokers and, where applicable, negotiating the
amount of the commission rate paid.
o The Adviser and Subadvisers select broker-dealers which, in their best
judgment, provide prompt and reliable execution at favorable security
prices and reasonable commission rates.
o They may select broker-dealers which provide them with research services
and may cause a Fund to pay such broker-dealers commissions which exceed
those other broker-dealers may have charged, if in their view the
commissions are reasonable in relation to the value of the brokerage
and/or research services provided by the broker-dealer.
o When purchasing or selling securities trading on the over-the-counter
market, the Adviser and Subadvisers will generally execute the
transaction with a broker engaged in making a market for such
securities.
o The Adviser and Subadvisers may place certain orders with their
affiliates, subject to the requirements of the 1940 Act.
o No transactions may be effected by a Fund with an affiliate of the
Adviser or a Sub-Adviser acting as principal for its own account.
Brokerage commissions are negotiated, as there are no standard rates. All
brokerage firms provide the service of execution of the order made. Some
brokerage firms routinely provide research and statistical data to their
customers, and some firms customarily provide research reports on particular
companies and industries to customers that place a certain volume of trades with
them.
The Adviser, and each Subadviser, will place orders with brokers providing
useful research and statistical data services if reasonable commissions can be
negotiated for the total services furnished even though lower commissions may be
available from brokers not providing such services. The Adviser, and each
Subadviser, uses these services in connection with all of its investment
activities, and some of the data or services obtained in connection with the
execution of transactions for the Investment Company may be used in managing
other investment accounts. Conversely, data or services obtained in connection
with transactions in other accounts may be used by the Adviser, and each
Subadviser, in providing investment advice to the Investment Company. To the
extent that the Adviser, and each Subadviser, uses research and statistical data
services so obtained, its expenses may be reduced and such data has therefore
been and is one of the factors considered by the Adviser, and each Subadviser,
in determining its fee for investment advisory services.
At times, transactions for the Investment Company may be executed together with
purchases or sales of the same security for other accounts of the Adviser or a
Subadviser. When making concurrent transactions for several accounts, an effort
is made to allocate executions fairly among them. Transactions of this type are
executed only when the Adviser, or a Subadviser, believes it to be in the best
interests of the affected Fund(s), as well as any other accounts involved.
However, the possibility exists that concurrent executions may work out to the
disadvantage of the Fund(s) involved.
19
<PAGE>
The Investment Company paid aggregate brokerage commissions of $46,772 in 1999,
$56,490 in 1998 and $47,705 in 1997.
Commissions to Affiliated Brokers
--------------------------------------------------------------------------------
During the past three years, the Investment Company has paid brokerage
commissions to Mutual of America Securities Corporation (Securities
Corporation), an affiliate of the Adviser, through an introducing brokerage
arrangement with Bear Stearns Securities Corp., and to Fred Alger & Co. (Fred
Alger), an affiliate of Alger Management, Inc., as follows:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
Year of Commissions % of Total % of Aggregate Dollars
Payment/Broker Paid Commissions Paid of Transactions
===============================================================================================================
<S> <C> <C> <C>
1999 -- Securities Corporation $ 0 0% 0%
---------------------------------------------------------------------------------------------------------------
1998 -- Securities Corporation $ 0 0% 0%
---------------------------------------------------------------------------------------------------------------
1997 -- Securities Corporation $ 2,070 4.15% 4.0%
---------------------------------------------------------------------------------------------------------------
1999 -- Fred Alger $11,843 25.3% 16.5%
---------------------------------------------------------------------------------------------------------------
1998 -- Fred Alger $15,470 27.4% 23.0%
---------------------------------------------------------------------------------------------------------------
1997 -- Fred Alger $18,793 37.6% 30.8%
---------------------------------------------------------------------------------------------------------------
</TABLE>
The purchases and sales placed through Fred Alger related primarily to stocks
issued by companies with smallermarket capitalizations, for which execution may
be more difficult.
Portfolio Turnover
--------------------------------------------------------------------------------
The Adviser and the Subadvisers do not consider portfolio turnover rate to be a
limiting factor when they deem it appropriate to purchase or sell securities for
a Fund. The portfolio turnover rate for a Fund in any year will depend on market
conditions, and the rate may increase depending on market conditions or if a new
portfolio manager for a Fund restructures the Fund's holdings. The Insurance
Companies' Separate Accounts do not pay taxes on the investment gains of the
Funds. As a consequence, the Adviser and Subadvisers do not consider how long a
Fund has held a security, or how capital gain upon sale would be characterized,
in deciding whether to sell that security.
The Equity Index Fund and the Indexed Assets of the All America Fund each
attempt to duplicate the investment results of the S&P 500 Index. As a result,
the Adviser anticipates that these Funds will hold investments generally for
longer periods than actively managed funds.
PURCHASE, REDEMPTION AND PRICING OF SHARES
Calculation of Net Asset Value
--------------------------------------------------------------------------------
An investor purchases or redeems shares of a Fund at net asset value. A Fund's
net asset value is equal to:
o the sum of the value of the securities the Fund holds,
o plus any cash or other assets, including interest and dividends accrued,
and
o minus all liabilities, including accrued expenses.
The net asset value of each Fund is determined once daily immediately after the
declaration of dividends, if any, and is determined as of the time of the close
of the regular trading session on the New York Stock Exchange (generally 4:00
p.m. Eastern Time) on each day during which such Exchange is open for trading.
A Fund's net asset value per share is equal to the Fund's net asset value
divided by the number of Fund shares outstanding.
20
<PAGE>
Pricing of Securities Held by the Funds
--------------------------------------------------------------------------------
In determining a Fund's net asset value, the Adviser must value the securities
and other assets the Fund owns.
1) If market quotations are readily available for an investment, the Adviser
uses market value as follows:
o An equity security will be valued at the last sale price for the
security on the principal exchange on which the security is traded, or
at the last bid price on the principal exchange on which such security
is traded if such bid price is of a more recent day than the last sale
price.
o For any equity security not traded on an exchange but traded in the
over-the-counter market, the value will be the last sale price
available, or if no sale, at the latest available bid price.
o Debt securities will be valued at a composite fair market value,
"evaluated bid," which may be the last sale price, by a valuation
service selected by the Adviser and approved by the Investment Company's
Board of Directors.
2) If there are any portfolio securities or assets for which market quotations
are not readily available, the Adviser will use fair value pricing, as
determined in good faith by or under the direction of the Board of Directors
of the Investment Company.
3) If a money market security has a remaining maturity of 60 days or less,the
Adviser will use the amortized cost method of valuation to approximate
market value, as follows:
o A security is initially valued at cost on the date of purchase (or at
market value on the 61st day prior to maturity if the security had more
than 60 days remaining to maturity at date of purchase by a Fund), and
the Adviser assumes constant proportionate amortization in value until
maturity of any discount or premium.
o The maturity of a variable rate certificate of deposit is deemed to be
the next coupon date on which the interest rate is to be adjusted.
o Market value will be used instead if the amortized cost value is
materially different from the actual market value of the security.
4) For stock options and futures contracts, these valuations apply:
o Stock options written by a Fund are valued at the mean of the last bid
and asked price on the principal exchange where the option is traded, as
of the close of trading on that exchange.
o When a Fund writes a call option, the amount of the premium is included
in the Fund's assets and the market value of the call is included in its
liabilities and adjusted thereafter to current market value.
o If a call expires or if the Fund enters into a closing purchase
transaction, it realizes a gain (or a loss if the cost of the
transaction exceeds the premium received when the call was written)
without regard to any unrealized appreciation or depreciation in the
underlying securities, and the liability related to such call is
extinguished.
o If a call is exercised, the Fund realizes a gain or loss from the
sale of the underlying securities and the proceeds of the sale
increased by the premium originally received.
o A premium a Fund pays on the purchase of a put will be deducted from a
Fund's assets and an equal amount will be included as an investment and
subsequently adjusted to the current market value of the put.
o Futures contracts, and options thereon, traded on commodities exchanges
are valued at their official settlement price as of the close of such
commodities exchanges.
21
<PAGE>
TAXATION OF THE INVESTMENT COMPANY
Taxes on Funds' Investment Earnings and Income
--------------------------------------------------------------------------------
Each Fund intends to qualify and elect treatment as a "regulated investment
company" under Subchapter M of the Internal Revenue Code. A Fund will not owe
Federal income tax on the ordinary income and net realized capital gains that it
distributes to shareholders, if it qualifies as a regulated investment company
and satisfies certain minimum income distribution rules.
If the Investment Company were to fail to qualify as a regulated investment
company, it would be subject to Federal income tax on the Funds' ordinary income
and net realized capital gains, whether or not it distributes the income and
gains to shareholders. If the Funds were to pay Federal income tax, their
investment performance would be negatively affected.
Section 4982 of the Code imposes an excise tax of 4% on a regulated investment
company that does not make a "required distribution" to shareholders of 98% of
its ordinary income for each calendar year and 98% of its capital gain income
for the one year period ending October 31 of each year, plus certain
undistributed income from previous years. Each Fund intends to make the
"required distributions" and to thereby avoid the excise tax. If a Fund were to
distribute less than the required amount, then the 4% excise tax would apply to
the deficiency, which would reduce the investment performance of the Funds.
Income Dividends and Capital Gains Distributions
--------------------------------------------------------------------------------
The Investment Company declares dividend distributions semi-annually (at the end
of June and end of December) in the case of net investment income and annually
(at the end of December) in the case of net realized short or long-term capital
gains. A shareholder's dividend distributions are automatically reinvested in
full or fractional shares of the Fund to which they relate, unless the
shareholder elects on its application or an amendment to the application either
(1) to receive dividend distributions in cash or, (2) in the case of
distributions by the Equity Index, All America and Bond Funds, to purchase
shares of the Money Market Fund (in which case the $5,000 minimum is waived).
Cash dividend distributions are paid by wire transfer of Federal funds. Payment
of dividends normally will be made on the first business day of the following
month at the net asset value as of the last business day of the month in which
the dividend distribution is declared. Dividends and other distributions are
taxable to a Fund's shareholders even though they are reinvested in additional
shares of the Fund.
TAXATION OF SHAREHOLDERS
The discussion below provides information that may be helpful to a shareholder,
but it is not a detailed explanation of the Federal income tax treatment of a
shareholder. In addition, the discussion does not address state, local or
foreign taxation. Potential purchasers of shares of a Fund are encouraged to
consult their tax advisers regarding specific questions as to Federal, state or
local taxes. Foreign investors should consider applicable foreign taxes in their
evaluation of an investment in a Fund as well. Many of the rules set forth below
do not apply to not-for-profit organizations and other entities that are not
subject to Federal income taxation.
Characterization of Funds' distributions. Dividends paid by a Fund out of its
ordinary income and distributions of a Fund's net realized short-term capital
gains (jointly, the "ordinary income dividends") are taxable to its shareholders
as ordinary income. Distributions made from a Fund's net realized long-term
capital gains, including long-term gains from certain transactions in futures
and options, (the "capital gain dividends") are taxable to the Fund's
shareholders as long-term capital gain.
Passive Foreign Investment Company ("PFIC"). Due to investment laws in certain
foreign countries, it is possible that a Fund's investments in equity securities
in such countries may consist of shares of investment companies (or similar
investment entities) organized under foreign law or of ownership interests in
special accounts, trusts or partnerships. If the Fund purchases shares of an
investment company (or similar investment entity) organized under foreign law,
the Fund will be treated as owning shares in a PFIC for U.S. federal income tax
purposes and may be subject to U.S. Federal income tax law in certain
circumstances.
Foreign currency gains or losses. Foreign currency gains or losses from certain
debt instruments are generally treated as ordinary income or loss. These gains
or losses will generally increase or decrease the amount of a Fund's investment
company taxable income available to be distributed to shareholders as ordinary
income.
22
<PAGE>
Additionally, if losses of this nature exceed a Fund's other investment company
taxable income during a taxable year, a Fund would not be able to make any
ordinary income dividend distributions. Any such distribution made before the
losses were realized (but in the same taxable year) would be recharacterized as
a return of capital to a Fund's shareholders, thereby reducing the shareholders'
basis in the Fund's shares, and resulting in a capital gain for any shareholder
who received a distribution greater than that shareholder's basis in the Fund's
shares (assuming the shares were held as capital assets).
Taxation of Foreign Country Income. Investment income received by a Fund may be
subject to withholding and other taxes imposed by foreign countries. Tax
conventions between certain countries and the United States may reduce or
eliminate these foreign taxes. These foreign taxes will reduce the amount of
funds available for distributions by a Fund, but are included in the taxable
income reported by the Fund's shareholders. Since stock and securities of
foreign issuers held by any Fund will be limited, the Fund's shareholders will
not be able to claim a credit or deduction for these foreign taxes paid by a
Fund.
Redemptions and Exchanges. Redemptions and exchanges of a Fund's shares are
taxable events, and shareholders may realize gains or losses on such events. A
shareholder's loss realized on a sale or exchange of shares of a Fund will be
disallowed if the shareholder acquires other Fund shares (whether through the
automatic reinvestment of dividends or otherwise) within a 61-day period
beginning 30 days before and ending 30 days after the date that the shares are
disposed of. In such a case, the basis of the shares acquired will be adjusted
to reflect the disallowed loss. Any loss upon the sale or exchange of Fund
shares held for six months or less, which is not disallowed, will be treated as
long-term capital loss to the extent of any capital gain dividends received by
the shareholder with respect to such shares.
Original Issue Discount. The Funds may purchase debt securities that contain
original issue discount. Original issue discount that accrues in a taxable year
is treated as income earned by a Fund and is subject to the distribution
requirements of the Internal Revenue Code. A Fund, however, generally will not
receive any cash income for the original issue discount income it earns in a
taxable year. Accordingly, there is a risk that the Fund may have to sell other
securities to satisfy distribution requirements under the Internal Revenue Code.
Debt securities that a Fund acquires also may be subject to the market discount
rules.
Capital gains rates for entities other than individuals. Capital gains of
corporations are subject to tax at the same rates applicable to ordinary income.
Capital losses may be used only to offset capital gains and excess net capital
loss may be carried back three years and forward five years.
Dividends received deductions. Certain corporations are entitled to a 70%
dividends received deduction for distributions from certain domestic
corporations. The Equity Index Fund and All America Fund will designate the
portion of any distributions that qualify for the 70% dividends received
deduction. The amount designated may not exceed the amount received by the
Equity Index Fund or All America Fund for its taxable year that qualifies for
the dividends received deduction. (Since none of the income of the Bond Fund or
the Money Market Fund is expected to be derived from dividends from domestic
corporations, it is not anticipated that any portion of the ordinary income
dividends of the Bond Fund or the Money Market Fund will qualify for the
dividends received deduction.)
Private Foundations. Private foundations and their managers are subject to
excise taxes under the Code if they invest "any amount in such a manner as to
jeopardize the carrying out of any of the foundation's exempt purposes." This
rule requires a foundation manager, in making an investment, to exercise
"ordinary business care and prudence" under the facts and circumstances
prevailing at the time of making the investment, in providing for the short-term
and long-term needs of the foundation in carrying out its exempt purposes.
The factors that a foundation manager may take into account in assessing an
investment under this standard include the expected rate of return (both income
and capital appreciation), the risks of rising and falling price levels, and the
need for diversification within the foundation's portfolio. A substantial
percentage of investments of certain "private operating foundations", as defined
in the Code, may be restricted to assets directly devoted to their tax-exempt
purposes. Each manager of a private foundation should consult the manager's and
the foundation's tax advisers regarding the foregoing considerations.
Endowment Funds. Investment managers of endowment funds should consider whether
the acquisition by such funds of shares in the Funds is legally permissible.
This is not a matter of federal law, but is determined under applicable state
statutes. It should be noted, however, that under the Uniform Management of
Institutional Funds Act, which has been adopted in various forms by a large
number of states, participation in mutual funds or similar organizations, in
which funds are commingled and investment determinations are made by persons
other than the governing board of the endowment fund, is permitted. Each
investment manager of an endowment fund should consult the endowment fund's
counsel regarding the foregoing considerations.
23
<PAGE>
Retirement Trusts, including Qualified Plans. The Funds may accept investments
from tax-qualified pension, profit-sharing or stock bonus plans, governmental
plans and units, and Taft-Hartley plans (all such entities hereinafter being
referred to as "Retirement Trusts"). A fiduciary of a Retirement Trust other
than a governmental plan or unit (a "Qualified Plan") is subject to certain
requirements under the Employee Retirement Income Security Act of 1974, as
amended (ERISA), including the discharge of duties solely in the interest of,
and for the exclusive purpose of providing benefits to, the Qualified Plan's
participants and beneficiaries.
In considering an investment in the Funds of a portion of the assets of any
Qualified Plan, a fiduciary should consider, among other factors: (a) whether
the investment is permitted by the documents and instruments governing the
Qualified Plan; (b) whether the investment satisfies the diversification
requirements of Section 404(a)(1)(C) of ERISA, if applicable; (c) whether the
investment provides sufficient liquidity to permit benefit payments to be made
as they become due; (d) whether the investment is for the exclusive purpose of
providing benefits to participants and their beneficiaries; and (e) whether the
investment may constitute a "prohibited transaction" (within the meaning of
Section 406 of ERISA and Section 4975(c) of the Code). Each fiduciary of a
Qualified Plan (and any other person subject to ERISA) should consult such
person's tax or other advisers regarding the foregoing considerations.
Shareholder Withholding
The Investment Company may be required to withhold for Federal income tax
("back-up withholding") from distributions made and the proceeds of redemptions
to a shareholder who is not exempt from back-up withholding, because the
shareholder has not provided a correct taxpayer identification number or made
required certifications, or when the Investment Company or the shareholder has
been notified by the Internal Revenue Service that the shareholder is subject to
back-up withholding.
Ordinary income dividends paid by a Fund to a shareholder that is a nonresident
alien or a foreign entity will be subject to a 30% U.S. withholding tax
applicable to foreign persons, unless a reduced rate of withholding or a
withholding exemption is provided under applicable law or an applicable tax
convention between the United States and a particular foreign country. Foreign
shareholders are urged to consult their own tax advisers concerning the
applicability of the U.S. withholding tax.
YIELD AND PERFORMANCE INFORMATION
Performance information is computed separately for each Fund in accordance with
the formulas described below. At any time in the future, total return and yields
may be higher or lower than in the past and there can be no assurance that any
historical results will continue.
Yield of the Money Market Fund. The Money Market Fund calculates a seven-day
"current yield" (eight days when the seventh prior day has no net asset value
because the Investment Company is closed on that day) based on a hypothetical
shareholder account containing one share at the beginning of the seven-day
period. The return is calculated for the period by determining the net change in
the hypothetical account's value for the period, excluding capital changes. The
net change is divided by the share value at the beginning of the period to give
the base period return. This base period return is then multiplied by 365/7 to
annualize the yield figure, which is carried to the nearest one-hundredth of one
percent.
Realized capital gains or losses and unrealized appreciation or depreciation of
the assets of the Money Market Fund are included in the hypothetical account for
the beginning of the period but changes in these items during the period are not
included in the value for the end of the period. Income other than investment
income is excluded for the period. Values also reflect asset charges (for
advisory fees) as well as brokerage fees and other expenses.
Current yields will fluctuate daily. Accordingly, yields for any given seven-day
period do not necessarily represent future results. It should be remembered that
yield depends on the type, quality, maturities and rates of return of the Money
Market Fund's investments, among other factors. The Money Market Fund yield does
not reflect the cost of insurance and other insurance company separate account
charges. It also should not be compared to the yield of money market funds made
available to the general public because they may use a different method to
calculate yield. In addition, their yields are usually calculated on the basis
of a constant one dollar price per share and they pay out earnings and dividends
which accrue on a daily basis.
24
<PAGE>
The following is an example of the calculation of the Money Market Fund's yield
for the seven-day period ended December 28, 1999. Yields may fluctuate
substantially from the example shown.
1. Value for December 21, 1999
2. Value for December 28, 1999 (exclusive of capital changes and any
non-investment income)
3. Net change equals Line 1 subtracted from Line 2
4. Base period return equals Line 3 divided by Line 1
5. Current yield equals Line 4 annualized (multiplied by 365/7)
The Money Market Fund calculates effective yield by following Steps 1 - 4 above
to obtain a base period return, then compounding the base period return as
follows:
Effective Yield = [(Base Period Return + 1) 365/7] -1
Calculation of Total Return and Average Annual Total Return. Total Return
reflects changes in the price of a Fund's shares and assumes that any dividends
or capital gains distributions are reinvested in that Fund's shares immediately
rather than paid to the investor in cash.
Average Annual Total Return is calculated by finding the average annual
compounded rates of return of a hypothetical investment over the periods shown,
according to the following formula (Total Return is then expressed as a
percentage):
T = (ERV/P)1/n -1
Where:
P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value. ERV is the value, at the end of the
applicable period, of a hypothetical $1,000 investment made at
the beginning of the applicable period.
Average Annual Total Return
For Periods Ended December 31, 1999*
Fund One Year Life of Fund*
---- -------- -------------
Equity Index N/A 9.0%
All America 26.0% 22.8%
Bond (3.5)% 5.0%
Money Market 4.9% 5.1%
Cumulative Total Return For
Periods Ended December 31, 1999*
Fund One Year Life of Fund*
---- -------- -------------
Equity Index N/A 9.0%
All America 26.0% 112.2%
Bond (3.5)% 19.5%
Money Market 4.9% 14.2%
-------------
* Dates the Funds commenced operations: All America and Bond Funds -- May 1,
1996; the Money Market Fund -- May 1, 1997; and the Equity Index Fund --
May 3, 1999.
Yield Of The Bond Fund. Yield of the shares of the Bond Fund will be computed by
annualizing net investment income, as determined by the Commission's formula,
calculated on a per share basis, for a recent one-month or 30-day period and
dividing that amount by the net asset value per share of the Fund on the last
trading day of that period. Net investment income will reflect amortization of
any market value premium or discount of fixed income securities (except for
obligations backed by mortgages or other assets) over such period and may
include recognition of a pro rata portion of the stated dividend rate of
dividend paying portfolio securities. The Yield of the Fund will vary from time
to time depending upon market conditions, the composition of the portfolio and
operating expenses allocated to the Fund.
25
<PAGE>
Performance Comparisons. Each Fund may from time to time include the Total
Return, the Average Annual Total Return and Yield of its shares in
advertisements or in information furnished to shareholders. The Money Market
Fund may also from time to time include the Yield and Effective Yield of its
shares in information furnished to shareholders.
Each Fund may from time to time also include the ranking of its performance
figures relative to such figures for groups of mutual funds categorized by
Lipper Analytical Services ("Lipper") as having the same or similar investment
objectives or by similar services that monitor the performance of mutual funds.
Each Fund may also from time to time compare its performance to average mutual
fund performance figures compiled by Lipper in Lipper Performance Analysis.
Advertisements or information the Investment Company furnishes to current or
prospective investors also may include evaluations of a Fund published by
nationally recognized ranking services and by financial publications that are
nationally recognized. These publications may include Barron's, Business Week,
CDA Technologies, Inc., Changing Times, Dow Jones Industrial Average, Financial
Planning, Financial World, Forbes, Fortune, Hulbert's Financial Digest,
Institutional Investor, Investors Daily, Money, Morningstar Mutual Funds, The
New York Times, Stanger's Investment Adviser, Value Line, The Wall Street
Journal, Wiesenberger Investment Company Service and USA Today.
In reports or other communications to shareholders, the Investment Company also
may describe general economic and market conditions affecting the Funds and may
compare the performance of the Funds with (1) that of mutual funds included in
the rankings prepared by Lipper or similar investment services that monitor the
performance of insurance company separate accounts or mutual funds, (2)
IBC/Donoghue's Money Fund Report, (3) other appropriate indices of investment
securities and averages for peer universe of funds which are described in this
Statement of Additional Information, or (4) data developed by the Adviser or any
of the Subadvisers derived from such indices or averages.
Comparative Indices for the Funds
--------------------------------------------------------------------------------
The Investment Company compares the performance of each Fund (other than the
Money Market Fund) against a widely recognized index or indices for stock or
bond market performance, based on the type of securities the Fund purchases. The
annual and semi-annual financial reports that the Investment Company prepares
will contain graphs with the Funds' performances compared to their indices.
It is not possible for an investor to directly invest in an unmanaged index.
Performance comparisons to indices are for informational purposes and do not
reflect any actual investment. The Funds pay investment advisory and other
expenses that are not applicable to unmanaged indices.
Equity Index Fund and All America Fund: Performance of each of these Funds is
compared to the Standard & Poor's Composite Index of 500 Stocks (the S&P 500
Index).
The S&P 500 Index is a market value-weighted and unmanaged index showing the
changes in the aggregate market value of 500 stocks relative to the base period
1941-43. The S&P 500 Index is composed almost entirely of common stocks of
companies listed on the NYSE, although the common stocks of a few companies
listed on the American Stock Exchange or traded OTC are included. The 500
companies represented include approximately 400 industrial concerns, as well as
financial services, utility and transportation concerns. The S&P 500 Index
represents about 80% of the market value of all issues traded on the NYSE.
Mid-Cap Equity Index Fund: Performance is compared to the Standard & Poor's
MidCap 400 Index (the S&P MidCap 400 Index).
The S&P MidCap 400 Index is a market value weighted and unmanaged index showing
the changes in the aggregate market value of 400 stocks issued by U.S. companies
with medium market capitalizations, generally between $150 million and $13
billion and with an average market value of approximately $4 billion. A majority
of the stocks are listed on the New York Stock Exchange and a significant
portion are traded on the Nasdaq National Market (over-the-counter).
Aggressive Equity Fund: Performance is compared to the Russell 2000 Index.
The Russell 2000 Index is a market capitalization weighted index of the 2000
smallest companies in the Russell 3000 Index. The largest company in the Russell
2000 Index has a current market value of approximately $1 billion. The market
capitalization of companies in the Index varies based on market conditions and
the companies included in the Index, which is adjusted yearly.
26
<PAGE>
Bond Fund: Performance is compared to the Lehman Brothers Government/Corporate
Bond Index (the Lehman Government/Corporate Index).
The Lehman Government/Corporate Index is a measure of the market value of
approximately 5,300 bonds with a face value currently in excess of $1 million,
which have at least one year to maturity and are rated "Baa" or higher
("investment grade") by a nationally recognized statistical rating agency.
DESCRIPTION OF CORPORATE BOND RATINGS
Description of Corporate bond ratings of Moody's Investors Services, Inc.:
Aaa -- Bonds which are rated Aaa are judged to be of the best quality. They
carry the smallest degree of investment risk and are generally referred
to as "gilt-edge". Interest payments are protected by a large or by an
exceptionally stable margin and principal is secure. While the various
protective elements are likely to change, such changes as can be
visualized are most unlikely to impair the fundamentally strong position
of such issues.
Aa -- Bonds which are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are generally
known as high-grade bonds. They are rated lower than the best bonds
because margins of protection may not be as large as in Aaa securities or
fluctuation of protective elements may be of greater amplitude or there
may be other elements present which make the long-term risks appear
somewhat larger than in Aaa securities.
A -- Bonds which are rated A possess many favorable investment attributes and
are to be considered as upper medium grade obligations. Factors giving
security to principal and interest are considered adequate but elements
may be present which suggest a susceptibility to impairment sometime in
the future.
Baa -- Bonds which are rated Baa are considered as medium grade obligations,
i.e., they are neither highly protected nor poorly secured. Interest
payments and principal security appear adequate for the present but
certain protective elements may be lacking or may be characteristically
unreliable over any great length of time. Such bonds lack outstanding
investment characteristics and in fact have speculative characteristics
as well.
Ba -- Bonds which are rated Ba are judged to have speculative elements; their
future cannot be considered as well assured. Often the protection of
interest and principal payments may be very moderate and thereby not well
safeguarded during both good and bad times over the future. Uncertainty
of position characterizes bonds in this class.
B -- Bonds which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of
maintenance of other terms of the contract over any long period of time
may be small.
Caa -- Bonds which are rated Caa are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to
principal or interest.
Ca -- Bonds which are rated Ca represent obligations which are speculative in a
high degree. Such issues are often in default or have other marked
shortcomings.
C -- Bonds which are rated C are the lowest rated class of bonds and issues so
rated can be regarded as having extremely poor prospects of ever
attaining any real investment standing.
Moody's applies numerical modifiers, 1, 2 and 3 in each generic rating
classification from Aa through B in its corporate bond rating system. The
modifier 1 indicates that the security ranks in the higher end of its generic
rating category; the modifier 2 indicates a mid-range ranking; and the modifier
3 indicates that the issue ranks in the lower end of its generic rating
category.
Description of corporate bond ratings of Standard & Poor's:
AAA -- Debt rated AAA has the highest rating assigned by Standard & Poor's.
Capacity to pay interest and repay principal is very strong.
AA -- Debt rated AA has a very strong capacity to pay interest and repay
principal and differs from the higher rated issues only in small degree.
A -- Debt rated A has a strong capacity to pay interest and repay principal,
although it is somewhat more susceptible to the adverse effects of
changes in circumstances and economic conditions than debt in higher
rated categories.
27
<PAGE>
BBB -- Debt rated BBB is regarded as having an adequate capacity to pay interest
and repay principal. Whereas it normally exhibits adequate protection
parameters, adverse economic conditions or changing circumstances are
more likely to lead to a weakened capacity to pay interest and repay
principal for debt in this category than in higher-rated categories.
BB -- Debt rated BB, B, CCC and CC is regarded, on balance, as predominantly
B speculative with respect to the issuer's capacity to pay interest and
CCC repay principal in accordance with the terms of the obligation. BB
CC indicates the lowest degree of speculation and CC the highest degree of
speculation. While such debt will likely have some quality and protective
characteristics, these are outweighed by large uncertainties or major
risk exposures to adverse conditions.
C -- The rating C is reserved for income bonds on which no interest is being
paid.
D -- Debt rated D is in default, and payment of interest and/or repayment of
principal is in arrears.
Plus (+) or Minus (-): The ratings from "AA" to "BB" may be modified by the
addition of a plus or minus sign to show relative standing within the major
rating categories.
DISTRIBUTION OF FUND SHARES
Mutual of America Securities Corporation, 320 Park Avenue, New York, New York
10022 (the Distributor), an indirect, wholly-owned subsidiary of Mutual of
America Life, serves as the principal underwriter and distributor of Fund
shares. The Distributor and Mutual of America Life, whose address is 320 Park
Avenue, New York, New York 10022, are affiliates of the Adviser.
The Distributor does not receive compensation for distributing Fund shares, and
it is not obligated to distribute any specific amount of Fund shares. The
Distributor is registered with the Securities and Exchange Commission as a
broker-dealer and is a member of the National Association of Securities Dealers,
Inc. Registered representatives of the Distributor, located in 36 field offices
throughout the United States, participate in the distribution of shares of the
Funds.
Shares of the Fund are offered on a continuous basis. There is no sales charge
or deferred sales charge for the purchase of Fund shares.
LEGAL MATTERS
The legal validity of the shares described in the Prospectus has been passed on
by Patrick A. Burns, Esq., Senior Executive Vice President and General Counsel
of the Investment Company.
INDEPENDENT AUDITORS
The financial statements included in this Statement of Additional Information
have been audited by Arthur Andersen LLP, independent public accountants, as
indicated in their report with respect thereto, and are included herein in
reliance upon the authority of said firm as experts in giving said report.
Arthur Andersen LLP have been selected as the independent auditors of the
Investment Company for its fiscal year ending December 31, 2000. Their address
is 1345 Avenue of the Americas, New York, New York 10105.
CUSTODIAN
The Chase Manhattan Bank, 1285 Avenue of the Americas, New York, New York 10019,
acts as Custodian of the Investment Company's
USE OF STANDARD & POOR'S INDEXES
The Equity Index Fund, the Indexed Assets of the All America Fund and the
Mid-Cap Equity Index Fund are not sponsored, endorsed, sold or promoted by
Standard & Poor's, a division of The McGraw-Hill Companies, Inc. (S&P). S&P
makes no representation or warranty, express or implied, to the owners of the
Equity Index Fund, the All America Fund, the Mid-Cap Equity Index Fund or any
member of the public regarding the advisability of investing in securities
generally or in the Equity Index Fund, the All America Fund or the Mid-Cap
Equity Index Fund particularly or the ability of the S&P 500 Index or the S&P
MidCap 400 Index to track general stock market performance. S&P's only
relationship to the Licensee is the licensing of certain trademarks and trade
names of S&P and of the S&P 500 Index and S&P MidCap 400 Index, which are
determined, composed and calculated by S&P without regard to the Equity Index
Fund, the All America Fund or the Mid-Cap Equity Index Fund. S&P has
28
<PAGE>
no obligation to take the needs of the Investment Company or the owners of the
Equity Index Fund, the All America Fund or the Mid-Cap Equity Index Fund into
consideration in determining, composing or calculating the S&P 500 Index or the
S&P MidCap 400 Index. S&P is not responsible for and has not participated in the
determination of the net asset values of the Equity Index Fund, the All America
Fund or the Mid-Cap Equity Index Fund, the amount of the shares of such Funds or
the timing of the issuance or sale of the Funds. S&P has no obligation or
liability in connection with the administration, marketing or trading of the
Equity Index Fund and S&P MidCap 400 Index, the All America Fund or the Mid-Cap
Equity Index Fund.
S&P does not guarantee the accuracy and/or the completeness of the S&P 500 Index
or the S&P MidCap 400 Index or any data included therein and S&P shall have no
liability for any errors, omissions, or interruptions therein. S&P makes no
warranty, express or implied, as to results to be obtained by the Investment
Company, owners of the Equity Index Fund, the All America Fund or the Mid-Cap
Equity Index Fund, or any other person or entity from the use of the S&P 500
Index or the S&P MidCap 400 Index or any data included therein. S&P makes no
express or implied warranties, and expressly disclaims all warranties or
merchantability or fitness for a particular purpose or use with respect to the
S&P 500 Index or the S&P MidCap 400 Index or any data included therein. Without
limiting any of the foregoing, in no event shall S&P have any liability for any
special, punitive, indirect or consequential damages (including lost profits),
even if notified of the possibilities of such damages.
FINANCIAL STATEMENTS
Page
----
Financial statements of the Investment Company for the year ended December 31,
1999 are included as follows:
President's Message ..................................................... 30
Portfolio Management Discussions ........................................ 31
Portfolio of Investments in Securities:
All America Fund ...................................................... 33
Equity Index Fund ..................................................... 41
Bond Fund ............................................................. 46
Money Market Fund ..................................................... 48
Statement of Assets and Liabilities ..................................... 49
Statement of Operations ................................................. 50
Statements of Changes in Net Assets ..................................... 51
Financial Highlights .................................................... 52
Notes to Financial Statements ........................................... 53
Report of Independent Public Accountants ................................ 56
Condensed financial statements of the Investment Company for the six months
ended June 30, 2000 (unaudited) are included as follows:
President's Message ..................................................... 57
Performance Graphs ...................................................... 58
Portfolio of Investments in Securities:
All America Fund ...................................................... 61
Equity Index Fund ..................................................... 69
Bond Fund ............................................................. 74
Money Market Fund ..................................................... 76
Statement of Assets and Liabilities ..................................... 77
Statement of Operations ................................................. 78
Statements of Changes in Net Assets ..................................... 79
Financial Highlights .................................................... 81
Notes to Financial Statements ........................................... 83
29
<PAGE>
--------------------------------------------------------------------------------
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
320 PARK AVENUE, NEW YORK, NEW YORK 10022
--------------------------------------------------------------------------------
Dear Shareholder:
We are pleased to present the Mutual of America Institutional Funds
results for the year ending December 31, 1999. These Funds are designed
primarily as investment vehicles for endowments, foundations and other
institutional investors.
The U.S. economy enjoyed an enviable combination of strong Gross Domestic
Product growth, low inflation, solid corporate profits and moderate interest
rates in 1999. The economy continued its near record expansion as consumer
confidence reached an all-time high, due largely to high employment levels and a
surging stock market. Global economies stabilized, providing further foundation
and fuel for the domestic economy.
The Federal Reserve, concerned with a strong expanding economy and tight
labor markets, responded with three rate increases totaling 75 basis points
during 1999. Long rates rose approximately 140 basis points during the year. The
strong economy, higher commodity prices and tight labor markets have increased
the potential for higher rates going forward.
The equity market, as represented by the S&P 500 Index, posted a record
ninth year of positive return. Technology was the dominant factor across all
capitalization levels within the equity markets, as evidenced by the NASDAQ's
remarkable 86% return. Investors seeking growth opportunities favored smaller
capitalization stocks, allowing them to outperform the steadier, but slower
growing, large caps.
Total Returns-Year Ended December 31, 1999
The total return performance of each Fund for the year ended December 31,
1999 was as follows (please note that the Equity Index Fund commenced operations
on May 3, 1999):
All America Fund .................................. +26.0%
Equity Index Fund ................................. + 9.0%
Bond Fund ......................................... - 3.5%
Money Market Fund ................................. + 4.9%
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 and Equity Index Fund) which
illustrate each Fund's respective:
o Historical total return achieved over specified periods, expressed
as an annual average rate and as a cumulative rate;
o Equivalent in dollars of a $10,000 hypothetical investment at the
beginning of each specified period; and
o Historical performance compared with an appropriate index.
The portfolios of each Fund and financial statements are presented in the
pages which then follow.
Thank you for your continued investment in our Funds.
Sincerely,
/s/ Dolores Morrissey
-----------------------
Dolores Morrissey
Chairman of the Board and President,
Mutual of America Institutional Funds, Inc.
30
<PAGE>
EQUITY INDEX FUND
The Equity Index Fund invests in the 500 stocks which comprise the S&P 500
Index. The S&P 500 is a market-value weighted index of 500 domestic stocks that
are traded on the New York Stock Exchange, American Stock Exchange and NASDAQ
National Market System. The weightings make each company's influence on the
Index's performance directly proportional to that company's market value. The
companies included in the Index tend to be industry leaders. The Fund commenced
operations effective May 3, 1999. At year-end, the Fund returned 9.0%, which
matched the Index's performance for the same time period. The prevailing theme
of 1999 was the dominance of technology, which was the best performing sector,
returning 54% for the May through December period. For the same period, the
Index was outperformed by two other sectors, namely Capital Goods and Consumer
Cyclicals. The worst performing sectors were Transportation and Financials.
Investor perceptions of possible Federal Reserve actions, a bias toward large
cap stocks and a persistent search for growth drove multiple expansion, which
contributed two-thirds of annual return.
ALL AMERICA FUND
The All America Fund's investment objective is to outperform the Standard
& Poor's 500 Index. The Fund is approximately 60% invested in the 500 stocks
that comprise the S&P 500. In 1999, the remaining 40% of the Fund was actively
managed by three subadvisors and Mutual of America Capital Management
Corporation. Each manager invests approximately 10% of the Fund's assets, using
a different investment approach. The four approaches are large cap growth, small
cap growth, large cap value and small cap value.
The Fund returned 26.0% for 1999, exceeding the Index's return of 21.0%.
The Fund's 1999 performance reflected investors' continued quest for growth
opportunities--both the large and small cap growth portions significantly
outperformed the value segments. Nevertheless, the small cap value segment
performed strongly. Only the large cap value portion turned in a negative
performance.
GROWTH OF A $10,000 INVESTMENT
[The following table is represented by a line graph in the printed material.]
All America Fund S & P 500 Index
---------------- ---------------
05/96 10,000 10,000
12/96 11,043 11,515
12/97 13,909 15,356
12/98 16,835 19,744
12/99 21,218 23,898
All America Fund
----------------
Total Return
----------------------------
Period Growth
Ended of Cumu- Annual
12/31/99 $10,000 lative Average
--------------------------------------------------------------------------------
1 Year 12,603 26.0% 26.0%
Since 5/1/96
(Inception)* $21,218 112.2% 22.8%
S&P 500 Index
-------------
Total Return
---------------------------
Period Growth
Ended of Cumu- Annual
12/31/99 $10,000 lative Average
--------------------------------------------------------------------------------
1 Year 12,104 21.0% 21.0%
Since 5/1/96
(Inception) $23,898 139.0% 26.8%
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.
31
<PAGE>
MONEY MARKET FUND
The Money Market Fund's investment objective is the realization of 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 Fund returned 4.9% for
1999. Short-term rates rose substantially during the year, allowing the Fund to
achieve a higher current return in December than was available from similar
maturities the previous January. The seven-day effective yield as of February
15, 2000 is 5.6%. As with all performance reportings, this yield is not
necessarily indicative of future annual yields.
BOND FUND
The Bond Fund seeks a high level of return consistent with the
preservation of capital through investments in publicly traded debt securities.
The Fund primarily invests in corporate and U.S. Government agency securities,
which yield more than U.S. Treasury issues. The Fund's benchmark, the Lehman
Bros. Government/Corporate Bond Index, had a rare negative return for 1999, as
did the Bond Fund. Fears of inflation, fed by a strong domestic economy, a
booming stock market, and higher oil prices, depressed bond returns. The
inability of coupon income to keep pace with interest rate increases further
damaged prospects for bond returns. The Fund's overemphasis on corporate bonds,
relative to its benchmark index, caused it to slightly underperform since
Government securities did better than the corporates held by the Fund.
[The following table is represented by a line graph in the printed material.]
GROWTH OF A $10,000 INVESTMENT
Bond Fund Lehman Brothers Gov't/Corp Bond Index
--------- -------------------------------------
05/96 10,000 10,000
12/96 10,501 10,610
12/97 11,435 11,646
12/98 12,379 12,748
12/99 11,948 12,474
Bond Fund
---------
Total Return
------------------------
Period Growth
Ended of Cumu- Annual
12/31/99 $10,000 lative Average
--------------------------------------------------------------------------------
1 Year $ 9,652 -3.5% -3.5%
Since 5/1/96
(Inception)* $11,948 19.5% 5.0%
Lehman Brothers Gov't./Corp. Bond Index
------------------------------------------
Total Return
-----------------------
Period Growth
Ended of Cumu- Annual
12/31/99 $10,000 lative Average
--------------------------------------------------------------------------------
1 Year $ 9,785 -2.2% -2.2%
Since 5/1/96
(Inception) $12,474 24.7% 6.2%
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.
32
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
December 31, 1999
Shares Value
------- --------
INDEXED ASSETS:
COMMON STOCKS
3Com Corp. ....................................... 1,146 $ 53,862
Abbott Laboratories .............................. 5,112 185,630
Adaptec, Inc. .................................... 347 17,307
ADC Telecommunications, Inc. ..................... 502 36,426
Adobe Systems, Inc. .............................. 410 27,573
Advanced Micro Devices, Inc. ..................... 495 14,324
AES Corp. ........................................ 692 51,727
Aetna, Inc. ...................................... 503 28,074
Aflac, Inc. ...................................... 893 42,138
Air Products & Chemicals, Inc. ................... 771 25,877
Alberto-Culver Co. Cl B .......................... 78 4,595
Albertson's, Inc. ................................ 1,413 45,569
Alcan Aluminum Ltd. .............................. 728 29,985
ALCOA, Inc. ...................................... 1,232 102,256
Allegheny Technologies, Inc. ..................... 320 7,180
Allergan, Inc. ................................... 426 21,194
Allied Waste Industries, Inc. .................... 633 5,578
Allstate Corp. ................................... 2,683 64,392
Alltel Corp. ..................................... 1,026 84,837
Alza Corp. ....................................... 341 11,807
Amerada Hess Corp. ............................... 304 17,252
Ameren Corp. ..................................... 461 15,098
America Online, Inc. ............................. 7,447 561,783
American Electric Power, Inc. .................... 650 20,881
American Express Co. ............................. 1,510 251,038
American General Corp. ........................... 837 63,507
American Greetings Corp. Cl A .................... 217 5,127
American Home Products Corp. ..................... 4,337 171,040
American Int'l. Group, Inc. ...................... 5,142 555,979
Amgen, Inc. ...................................... 3,393 203,792
AMR Corp. ........................................ 506 33,902
Amsouth Bancorporation ........................... 1,322 25,531
Anadarko Petroleum Corp. ......................... 428 14,606
Analog Devices, Inc. ............................. 581 54,033
Andrew Corp. ..................................... 276 5,227
Anheuser-Busch Cos., Inc. ........................ 1,571 111,345
Aon Corp. ........................................ 861 34,440
Apache Corp. ..................................... 383 14,147
Apple Computer, Inc. ............................. 541 55,622
Applied Materials, Inc. .......................... 1,262 159,880
Archer-Daniels-Midland Co. ....................... 2,021 24,631
Armstrong World Inds., Inc. ...................... 129 4,305
Ashland, Inc. .................................... 243 8,004
Associates First Capital Corp. Cl A .............. 2,447 67,140
AT&T Corp. ....................................... 10,613 538,610
Atlantic Richfield Co. ........................... 1,083 93,680
Autodesk, Inc. ................................... 191 6,446
Automatic Data Processing, Inc. .................. 2,079 112,006
AutoZone, Inc. ................................... 500 16,156
Avery Dennison Corp. ............................. 382 27,838
Avon Products, Inc. .............................. 805 26,565
Baker Hughes, Inc. ............................... 1,105 23,274
Ball Corp. ....................................... 100 3,938
Bank of America Corp. ............................ 5,670 284,563
Bank of New York Co., Inc. ....................... 2,471 98,840
Bank One Corp. ................................... 3,809 122,126
Bard (C.R.), Inc. ................................ 165 8,745
Barrick Gold Corp. ............................... 1,310 23,171
Bausch & Lomb, Inc. .............................. 193 13,208
Baxter International, Inc. ....................... 978 61,431
BB & T Corp. ..................................... 1,074 29,401
Bear Stearns Cos., Inc. .......................... 411 17,570
Becton Dickinson & Co. ........................... 841 22,497
Bed Bath & Beyond, Inc. .......................... 469 16,298
Bell Atlantic Corp. .............................. 5,158 317,539
BellSouth Corp. .............................. 6,252 292,672
Bemis, Inc. .................................. 169 5,894
Best Buy, Inc. ............................... 685 34,378
Bestfoods .................................... 937 49,251
Bethlehem Steel Corp. ........................ 440 3,685
Biomet, Inc. ................................. 378 15,120
Black & Decker Corp. ......................... 284 14,839
Block (H. & R.), Inc. ........................ 328 14,350
BMC Software, Inc. ........................... 804 64,270
Boeing Co. ................................... 3,104 129,010
Boise Cascade Corp. .......................... 192 7,776
Boston Scientific Corp. ...................... 1,390 30,406
Briggs & Stratton Corp. ...................... 75 4,022
Bristol-Myers Squibb Co. ..................... 6,589 422,931
Brown-Forman Corp. Cl B ...................... 222 12,710
Brunswick Corp. .............................. 310 6,898
Burlington Northern Santa Fe Corp. ........... 1,518 36,812
Burlington Resources, Inc. ................... 731 24,169
Cabletron Systems, Inc. ...................... 585 15,210
Campbell Soup Co. ............................ 1,421 54,975
Capital One Financial Corp. .................. 664 31,997
Cardinal Health, Inc. ........................ 915 43,806
Carnival Corp. ............................... 2,061 98,542
Carolina Power & Light Co. ................... 536 16,315
Caterpillar, Inc. ............................ 1,195 56,240
CBS Corp. .................................... 2,532 161,890
Cendant Corp. ................................ 2,362 62,741
Centex Corp. ................................. 192 4,740
Central & South West Corp. ................... 715 14,300
CenturyTel, Inc. ............................. 469 22,219
Ceridian Corp. ............................... 486 10,479
Champion International Corp. ................. 323 20,006
Charles Schwab Corp. ......................... 2,748 105,455
Chase Manhattan Corp. ........................ 2,739 212,786
Chevron Corp. ................................ 2,204 190,922
Chubb Corp. .................................. 592 33,337
CIGNA Corp. .................................. 625 50,352
Cincinnati Financial Corp. ................... 555 17,309
CINergy Corp. ................................ 534 12,883
Circuit City Group, Inc. ..................... 675 30,417
Cisco Systems, Inc. .......................... 10,865 1,163,913
Citigroup, Inc. .............................. 11,199 622,244
Citrix Systems, Inc. ......................... 295 36,285
Clear Channel Communications, Inc. ........... 1,134 101,210
Clorox Co. ................................... 93 39,947
CMS Energy Corp. ............................. 397 12,381
Coastal Corp. ................................ 717 25,409
Coca-Cola Co. ................................ 8,204 477,883
Coca-Cola Enterprises, Inc. .................. ,428 28,739
Colgate-Palmolive Co. ........................ 1,959 127,335
Columbia Energy Group ........................ 270 17,078
Columbia/HCA Healthcare Corp. ................ 1,896 55,576
Comcast Corp. Cl A ........................... 2,518 127,316
Comerica, Inc. ............................... 525 24,511
Compaq Computer Corp. ........................ 5,646 152,795
Computer Associates Intl., Inc ............... 1,806 126,307
Computer Sciences Corp. ...................... 538 50,908
Compuware Corp. .............................. 1,200 44,700
Comverse Technology Inc. ..................... 235 34,016
Conagra, Inc. ................................ 1,640 37,003
Conoco, Inc. ................................. 2,107 52,412
Conseco, Inc. ................................ 1,099 19,645
Consolidated Edison, Inc. .................... 743 25,634
Consolidated Natural Gas Co. ................. 322 20,910
Consolidated Stores Corp. .................... 370 6,013
The accompanying notes are an integral part of these financial statments.
33
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
Shares Value
------ ---------
INDEXED ASSETS (CONTINUED):
COMMON STOCKS (CONTINUED)
Constellation Energy Group, Inc. ................. 503 $ 14,587
Cooper Industries, Inc. .......................... 317 12,819
Cooper Tire & Rubber Co. ......................... 255 3,968
Coors (Adolph) Co. Cl B .......................... 118 6,195
Corning, Inc. .................................... 822 105,987
Costco Wholesale Corp. ........................... 742 67,708
Countrywide Credit Industries, Inc. .............. 379 9,570
Crane Co. ........................................ 222 4,412
Crown Cork & Seal, Inc. .......................... 411 9,196
CSX Corp. ........................................ 731 22,935
Cummins Engine Co., Inc. ......................... 135 6,522
CVS Corp. ........................................ 1,316 52,558
Dana Corp. ....................................... 557 16,675
Danaher Corp. .................................... 478 23,064
Darden Restaurants, Inc. ......................... 444 8,048
Dayton-Hudson Corp. .............................. 1,486 109,128
Deere & Co. ...................................... 785 34,049
Dell Computer Corp. .............................. 8,439 430,389
Delphi Automotive Systems Corp ................... 1,899 29,909
Delta Air Lines, Inc. ............................ 441 21,967
Deluxe Corp. ..................................... 251 6,887
Dillard's Inc. Cl A .............................. 359 7,247
Disney (Walt) Co. ................................ 6,850 200,363
Dollar General Corp. ............................. 883 20,088
Dominion Resources, Inc. ......................... 645 25,316
Donnelley (R.R.) & Sons Co. ...................... 429 10,645
Dover Corp. ...................................... 700 31,763
Dow Chemical Co. ................................. 739 98,749
Dow Jones & Co., Inc. ............................ 305 20,740
DTE Energy Co. ................................... 487 15,280
Du Pont (E.I.) de Nemours & Co ................... 3,469 228,536
Duke Energy Corp. ................................ 1,226 61,453
Dun & Bradstreet Corp. ........................... 541 15,960
Eastern Enterprises .............................. 85 4,882
Eastman Chemical Co. ............................. 256 12,208
Eastman Kodak Co. ................................ 1,063 70,424
Eaton Corp. ...................................... 243 17,648
Ecolab, Inc. ..................................... 435 17,019
Edison International ............................. 1,167 30,561
El Paso Energy Corp. ............................. 766 29,730
Electronic Data Systems Corp. .................... 1,564 104,690
EMC Corp. ........................................ 3,405 371,996
Emerson Electric Co. ............................. 1,460 83,768
Engelhard Corp. .................................. 423 7,984
Enron Corp. ...................................... 2,399 106,456
Entergy Corp. .................................... 829 21,347
Equifax, Inc. .................................... 483 11,381
Exxon Mobil Corp. ................................ 11,471 924,133
Fannie Mae ....................................... 3,405 212,600
FDX Corp. ........................................ 999 40,897
Federated Department Stores, Inc. ................ 701 35,444
Federal Home Loan Mortgage Corp. ................. 2,336 109,938
Fifth Third Bancorp .............................. 1,014 74,402
First Data Corp. ................................. 1,392 68,643
First Union Corp. ................................ 3,281 107,658
Firstar Corp. .................................... 3,256 68,783
FirstEnergy Corp. ................................ 786 17,832
FleetBoston Financial Corp. ...................... 3,041 105,865
Fleetwood Enterprises, Inc. ...................... 112 2,310
Florida Progress Corp. ........................... 330 13,963
Fluor Corp. ...................................... 255 11,698
FMC Corp. ........................................ 102 5,846
Ford Motor Co. ................................... 4,012 214,391
Fort James Corp. ................................. 743 20,340
Fortune Brands, Inc. ............................. 559 18,482
Foster Wheeler Corp. ............................. 132 1,172
FPL Group, Inc. .................................. 602 25,773
Franklin Resources, Inc. ......................... 847 27,157
Freeport-McMoran Copper & Gold,
Inc. Cl B ........................................ 549 11,598
Gannett Co., Inc. ................................ 940 76,669
Gap, Inc. ........................................ 2,844 130,824
Gateway, Inc. .................................... 1,052 75,810
General Dynamics Corp. ........................... 669 35,290
General Electric Co. ............................. 10,898 1,686,466
General Instrument Corp. ......................... 583 49,555
General Mills, Inc. .............................. 1,027 36,715
General Motors Corp. ............................. 2,126 154,534
Genuine Parts Co. ................................ 602 14,937
Georgia-Pacific Group ............................ 576 29,232
Gillette Co. ..................................... 3,563 146,751
Global Crossing Ltd. ............................. 2,521 126,050
Golden West Financial Corp. ...................... 552 18,492
Goodrich (B.F.) Co. .............................. 369 10,148
Goodyear Tire & Rubber Co. ....................... 525 14,798
GPU, Inc. ........................................ 422 12,634
Grainger (W.W.), Inc. ............................ 314 15,013
Great Atlantic & Pacific Tea, Inc ................ 124 3,457
Great Lakes Chemical Corp. ....................... 191 7,294
GTE Corp. ........................................ 3,228 227,776
Guidant Corp. .................................... 1,015 47,705
Halliburton Holdings Co. ......................... 1,483 59,691
Harcourt General, Inc. ........................... 230 9,258
Harrah's Entertainment, Inc. ..................... 431 11,395
Hartford Financial Svs Gp, Inc ................... 759 35,958
Hasbro, Inc. ..................................... 654 12,467
HealthSouth Corp. ................................ 1,283 6,896
Heinz (H.J.) Co. ................................. 1,204 47,934
Helmerich & Payne, Inc. .......................... 163 3,555
Hercules, Inc. ................................... 356 9,924
Hershey Food Corp. ............................... 469 22,278
Hewlett-Packard Co. .............................. 3,404 387,843
Hilton Hotels Corp. .............................. 1,239 11,925
Home Depot, Inc. ................................. 7,647 524,297
Homestake Mining Co. ............................. 874 6,828
Honeywell International, Inc. .................... 2,652 152,988
Household International Corp. .................... 1,562 58,185
Humana, Inc. ..................................... 563 4,610
Huntington Bancshares, Inc. ...................... 774 18,479
Ikon Office Solutions, Inc. ...................... 501 3,413
Illinois Tool Works, Inc. ........................ 1,008 68,103
IMS Health, Inc. ................................. 1,051 28,574
Inco Ltd. ........................................ 645 15,158
Ingersoll Rand Co. ............................... 555 30,560
Intel Corp. ...................................... 11,115 914,903
Intl. Business Machines Corp. .................... 5,987 646,596
Intl. Flavors & Fragrances, Inc. ................. 357 13,477
International Paper Co. .......................... 1,390 78,448
Interpublic Group of Cos., Inc. .................. 948 54,688
ITT Industries, Inc. ............................. 295 9,864
Jefferson-Pilot Corp. ............................ 354 24,161
Johnson & Johnson ................................ 4,619 430,144
Johnson Controls, Inc. ........................... 287 16,323
Jostens, Inc. .................................... 111 2,699
Kansas City Southern Inds., Inc. ................. 371 27,686
Kaufman & Broad Home Corp. ....................... 154 3,725
Kellogg Co. ...................................... 1,362 41,967
Kerr-McGee Corp. ................................. 290 17,980
The accompanying notes are an integral part of these financial statments.
34
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
Shares Value
------ ----------
INDEXED ASSETS (CONTINUED):
COMMON STOCKS (CONTINUED
KeyCorp ...................................... 1,508 $ 33,365
Kimberly Clark Corp. ......................... 1,790 116,798
KLA-Tencor Corp. ............................. 296 32,967
Kmart Corp. .................................. 1,659 16,694
Knight-Ridder, Inc. .......................... 272 16,184
Kohl's Corp. ................................. 547 39,487
Kroger Co. ................................... 2,787 52,605
Legget & Platt, Inc. ......................... 661 14,170
Lehman Brothers Holdings, Inc. ............... 403 34,129
Lexmark Intl. Group Inc. Cl A ................ 433 39,187
Lilly (Eli) & Co. ............................ 3,622 240,863
Limited, Inc. ................................ 719 31,142
Lincoln National Corp. ....................... 668 26,720
Liz Claiborne, Inc. .......................... 203 7,638
Lockheed Martin Corp. ........................ 1,328 29,050
Loews Corp. .................................. 361 21,908
Longs Drug Stores Corp. ...................... 126 3,252
Louisiana-Pacific Corp. ...................... 361 5,144
Lowe's Companies, Inc. ....................... 1,282 76,600
LSI Logic Corp. .............................. 495 33,413
Lucent Technologies, Inc. .................... 10,406 778,499
Mallinckrodt, Inc. ........................... 231 7,349
Manor Care, Inc. ............................. 360 5,760
Marriott International, Inc Cl A ............. 836 26,386
Marsh & McLennan Co., Inc. ................... 887 84,875
Masco Corp. .................................. 1,488 37,758
Mattel, Inc. ................................. 1,412 18,533
May Department Stores Co. .................... 1,123 36,217
Maytag Corp. ................................. 284 13,632
MBIA, Inc. ................................... 336 17,745
MBNA Corp. ................................... 2,663 72,567
McDermott International, Inc. ................ 191 1,731
McDonald's Corp. ............................. 4,497 181,285
McGraw-Hill Cos., Inc. ....................... 661 40,734
MCI WorldCom, Inc. ........................... 9,441 500,963
McKesson HBOC, Inc. .......................... 945 21,322
Mead Corp. ................................... 344 14,943
MediaOne Group, Inc. ......................... 2,038 156,544
Medtronic, Inc. .............................. 3,943 143,673
Mellon Financial Corp. ....................... 1,689 57,532
Merck & Co., Inc. ............................ 7,764 520,673
Meredith Corp. ............................... 169 7,045
Merrill Lynch & Co., Inc. .................... 1,242 103,707
MGIC Investment Corp. ........................ 367 22,089
Micron Technology, Inc. ...................... 896 69,664
Microsoft Corp. .............................. 17,150 2,002,225
Milacron, Inc. ............................... 119 1,830
Millipore Corp. .............................. 142 5,485
Minnesota Mining & Mfg. Co. .................. 1,353 132,425
Mirage Resorts, Inc. ......................... 668 10,229
Molex, Inc. .................................. 521 29,534
Monsanto Co. ................................. 2,129 75,846
Morgan (J.P.) & Co., Inc. .................... 590 74,709
Morgan Stanley Dean Witter & Co. ............. 1,850 264,088
Motorola, Inc. ............................... 2,040 300,390
Nabisco Group Holdings Corp. ................. 1,096 11,645
NACCO Industries, Inc. Cl A .................. 26 1,445
National City Corp. .......................... 2,077 49,199
National Semiconductor Corp. ................. 564 24,146
National Service Industries .................. 134 3,953
Navistar International Corp. ................. 217 10,280
Network Appliance, Inc. ...................... 494 41,033
New Century Energies, Inc. ................... 387 11,755
New York Times Co. Cl A ...................... 585 28,738
Newell Rubbermaid, Inc. ...................... 947 27,463
Newmont Mining Corp. ......................... 563 13,794
Nextel Communications, Inc. Cl A ............. 1,215 125,297
Niagara Mohawk Holdings, Inc. ................ 630 8,781
Nicor, Inc. .................................. 154 5,005
Nike, Inc. Cl B .............................. 945 46,837
Nordstrom, Inc. .............................. 471 12,334
Norfolk Southern Corp. ....................... 1,278 26,199
Nortel Networks Corp ......................... 4,460 450,460
Northern States Power Co. .................... 518 10,101
Northern Trust Corp. ......................... 750 39,750
Northrop Grumman Corp. ....................... 233 12,597
Novell, Inc. ................................. 1,126 44,970
Nucor Corp. .................................. 293 16,060
Occidental Petroleum Corp. ................... 1,221 26,404
Office Depot, Inc. ........................... 1,093 11,955
Old Kent Financial Corp. ..................... 399 14,115
Omnicom Group, Inc. .......................... 596 59,600
Oneok, Inc. .................................. 102 2,563
Oracle Corp. ................................. 4,729 529,944
Owens Corning ................................ 175 3,380
Owens-Illinois, Inc. ......................... 524 13,133
Paccar, Inc. ................................. 263 11,654
Pactiv Corp. ................................. 573 6,088
Paine Webber Group, Inc. ..................... 489 18,979
Pall Corp. ................................... 417 8,992
Parametric Technology Corp. .................. 905 24,492
Parker Hannifin Corp. ........................ 365 18,729
Paychex, Inc. ................................ 826 33,040
PE Corp-PE Biosystems Group .................. 343 41,267
Peco Energy Co. .............................. 627 21,788
Penney (J.C.) Co., Inc. ...................... 886 17,665
Peoples Energy Corp. ......................... 114 3,819
Peoplesoft, Inc. ............................. 817 17,412
Pep Boys-Manny, Moe & Jack ................... 170 1,551
PepsiCo, Inc. ................................ 4,835 170,434
Perkin Elmer, Inc. ........................... 145 6,045
Pfizer, Inc. ................................. 12,858 417,081
PG & E Corp. ................................. 1,290 26,445
Pharmacia & Upjohn, Inc. ..................... 1,703 76,635
Phelps Dodge Corp. ........................... 297 19,958
Phillip Morris Cos., Inc. .................... 7,859 182,231
Phillips Petroleum Co. ....................... 851 39,997
Pinnacle West Capital Corp. .................. 285 8,710
Pitney Bowes, Inc. ........................... 899 43,433
Placer Dome, Inc. ............................ 1,094 11,761
PNC Bank Corp. ............................... 977 43,477
Polaroid Corp. ............................... 142 2,671
Potlatch Corp. ............................... 94 4,195
PP&L Resources, Inc. ......................... 477 10,911
PPG Industries, Inc. ......................... 583 36,474
Praxair, Inc. ................................ 536 26,968
Price (T. Rowe) Associates ................... 408 15,071
Proctor & Gamble Co. ......................... 4,365 478,240
Progressive Corp. of Ohio .................... 245 17,916
Providian Financial Corp. .................... 476 43,346
Public Svc. Enterprise Group, Inc. ........... 37 25,657
Pulte Corp. .................................. 140 3,150
Quaker Oats Co. .............................. 450 29,531
Qualcomm, Inc. ............................... 2,156 379,995
Quintiles Transnational Corp. ................ 386 7,213
Ralston Purina Co. ........................... 1,087 30,300
Raytheon Co. Cl B ............................ 1,135 30,148
Reebok International Ltd. .................... 182 1,490
The accompanying notes are an integral part of these financial statments.
35
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
Shares Value
------ ---------
INDEXED ASSETS (CONTINUED):
COMMON STOCKS (CONTINUED
Regions Financial Corp. ...................... 752 $ 18,894
Reliant Energy, Inc. ......................... 994 22,738
Republic New York Corp. ...................... 352 25,344
Reynolds Metals Co. .......................... 208 15,938
Rite-Aid Corp. ............................... 870 9,733
Rockwell Intl., Corp. ........................ 643 30,784
Rohm & Haas Co. .............................. 732 29,783
Rowan Cos., Inc. ............................. 271 5,877
Royal Dutch Petroleum Co. N.Y ................ 7,122 430,436
Russell Corp. ................................ 110 1,843
Ryder System, Inc. ........................... 216 5,279
Safeco Corp. ................................. 442 10,995
Safeway, Inc. ................................ 1,715 60,990
Sara Lee Corp. ............................... 3,036 66,982
SBC Communications, Inc. ..................... 11,331 552,386
Schering-Plough Corp. ........................ 4,879 205,833
Schlumberger, Ltd. ........................... 1,840 103,500
Scientific-Atlanta, Inc. ..................... 257 14,296
Scottish Power plc - ADR ..................... * 11
Seagate Technology ........................... 700 32,594
Seagram Ltd. ................................. 1,453 65,294
Sealed Air Corp. New ......................... 281 14,559
Sears Roebuck & Co. .......................... 1,278 38,899
Sempra Energy ................................ 808 14,039
Service Corp. International .................. 914 6,341
Shared Medical Systems Corp. ................. 86 4,381
Sherwin-Williams Co. ......................... 569 11,949
Sigma-Aldrich Corp. .......................... 339 10,191
Silicon Graphics, Inc. ....................... 634 6,221
SLM Holding Corp. ............................ 541 22,857
Snap-On, Inc. ................................ 211 5,605
Solectron Corp. .............................. 984 93,603
Southern Co. ................................. 2,236 52,546
Southtrust Corp .............................. 563 21,288
Southwest Airlines Co. ....................... 1,694 27,422
Springs Industries, Inc. ..................... 58 2,316
Sprint Corp. (FON Group) ..................... 2,915 196,216
Sprint Corp. (PCS Group) ..................... 1,431 146,678
St. Jude Medical, Inc. ....................... 284 8,715
St. Paul Companies, Inc. ..................... 762 25,670
Stanley Works ................................ 299 9,007
Staples, Inc. ................................ 1,562 32,412
State Street Corp. ........................... 542 39,600
Summit Bancorp ............................... 595 18,222
Sun Microsystems, Inc. ....................... 5,200 402,675
Sunoco, Inc. ................................. 304 7,144
Suntrust Banks, Inc. ......................... 1,081 74,386
Supervalu, Inc. .............................. 467 9,340
Synovus Financial Corp. ...................... 912 18,126
Sysco Corp. .................................. 1,112 43,994
Tandy Corp. .................................. 649 31,923
Tektronix, Inc. .............................. 153 5,948
Tellabs, Inc. ................................ 1,316 84,471
Temple-Inland, Inc. .......................... 180 11,869
Tenet Healthcare Corp. ....................... 1,043 24,511
Teradyne, Inc. ............................... 575 37,950
Texaco, Inc. ................................. 1,857 100,858
Texas Instruments, Inc. ...................... 2,640 255,750
Texas Utilities Co. .......................... 929 33,038
Textron, Inc. ................................ 505 38,727
Thermo Electron Corp. ........................ 531 7,965
Thomas & Betts Corp. ......................... 183 5,833
Time Warner, Inc. ............................ 4,273 309,525
Times Mirror Co. ............................. 201 13,467
Timken Co. ................................... 201 4,108
TJX Companies ................................ 1,030 21,051
Torchmark Corp. .............................. 447 12,991
Tosco Corp. .................................. 478 12,996
Toys R Us, Inc. .............................. 832 11,908
Transocean Sedco Forex, Inc. ................. 356 12,000
Tribune Co. .................................. 796 43,830
Tricon Global Restaurants Inc. ............... 516 19,931
TRW, Inc. .................................... 407 21,139
Tupperware Corp. ............................. 186 3,150
Tyco International Ltd. ...................... 5,623 218,594
U.S. Bancorp ................................. 2,417 57,555
U.S. West, Inc. .............................. 1,696 122,112
Unicom Corp. ................................. 730 24,455
Unilever N.V ................................. 1,921 104,574
Union Carbide Corp. .......................... 448 29,904
Union Pacific Corp. .......................... 833 36,340
Union Pacific Resources Group, Inc. .......... 846 10,787
Union Planters Corp. ......................... 480 18,930
Unisys Corp. ................................. 1,028 32,832
United Healthcare Corp. ...................... 582 30,919
United Technologies Corp. .................... 1,618 105,170
Unocal Corp. ................................. 814 27,320
UNUMProvident Corp. .......................... 802 25,714
US Airways Group Inc. ........................ 237 7,599
UST, Inc. .................................... 585 14,735
USX-Marathon Group ........................... 1,037 25,601
USX-U.S. Steel Group ......................... 297 9,801
V F Corp. .................................... 399 11,970
Viacom, Inc. Cl B ............................ 2,341 141,484
Vulcan Materials Co. ......................... 336 13,419
W.R. Grace & Co. ............................. 239 3,316
Wachovia Corp. ............................... 680 46,240
Wal-Mart Stores, Inc. ........................ 14,781 1,021,737
Walgreen Co. ................................. 3,333 97,490
Warner-Lambert Co. ........................... 2,872 235,325
Washington Mutual, Inc. ...................... 1,946 50,596
Waste Management, Inc. ....................... 2,081 35,767
Watson Pharmaceuticals, Inc. ................. 322 11,532
Wellpoint Health Networks Inc. Cl A .......... 217 14,308
Wells Fargo & Company ........................ 5,455 220,587
Wendy's International, Inc. .................. 408 8,415
Westvaco Corp. ............................... 337 10,995
Weyerhaeuser Co. ............................. 792 56,875
Whirlpool Corp. .............................. 246 16,005
Willamette Industries, Inc. .................. 375 17,414
Williams Cos., Inc. .......................... 1,459 44,591
Winn-Dixie Stores, Inc. ...................... 499 11,945
Worthington Industries, Inc. ................. 309 5,118
Wrigley (Wm.) Jr. Co. ........................ 391 32,429
Xerox Corp. .................................. 2,228 50,548
Xilinx, Inc. ................................. 1,062 48,288
Yahoo!, Inc. ................................. 874 378,169
-----------
TOTAL INDEXED ASSETS--COMMON STOCKS
(Cost: $21,123,075) 56.7% ...................... $41,037,263
-----------
----------
* Fractional share attributable to Corporate Action.
The accompanying notes are an integral part of these financial statments.
36
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
Face
Rate Maturity Amount Value
------ --------- --------- ---------
INDEXED ASSETS (CONTINUED):
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT (0.3%)
U.S. Treasury Bill (a) .......... 5.18% 01/20/00 $ 200,000 $ 199,450
-----------
AGENCY (0.8%)
Federal Home Loan Bank ......... 4.75 01/12/00 613,000 612,110
-----------
COMMERCIAL PAPER (0.9%)
UBS Finance (Delw.) Inc. ....... 4.00 01/03/00 642,000 641,857
-----------
TOTAL SHORT-TERM DEBT
Securities
(Cost: $1,453,417) 2.0% ...................................... 1,453,417
-----------
TOTAL INDEXED ASSETS
(Cost: $22,576,492) 58.7% .................................... $42,490,680
-----------
----------
FUTURES CONTRACTS OUTSTANDING AS OF DECEMBER 31, 1999:
Expiration Underlying Face Unrealized
Date Amount at Value Gain
------------- --------------- ----------
PURCHASED
3 S&P 500 Stock Index
Futures Contracts March 2000 $1,113,150 $40,088
=========== =======
The face value of futures purchased and outstanding as percentage of total
investment in securities: 1.5%.
----------
(a) This security has been segregated to cover initial margin requirements on
open futures contracts.
The accompanying notes are an integral part of these financial statments.
37
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
Shares Value
------- ----------
ACTIVE ASSETS:
COMMON STOCKS
BASIC MATERIALS
Cabot Corp. .................................. 4,000 $ 81,500
Lone Star Technologies, Inc.* ................ 6,600 183,975
Newmont Mining Corp. ......................... 3,100 75,950
Placer Dome, Inc. ............................ 5,600 60,200
Praxair, Inc ................................. 4,100 206,281
----------
607,906
----------
CONSUMER, CYCLICAL (4.6%)
eBay, Inc.* .................................. 1,000 125,188
Abercrombie & Fitch Co. Cl A* ................ 2,800 74,725
Bed Bath & Beyond, Inc.* ..................... 5,200 180,700
BJ Services Co.* ............................. 1,800 75,263
BJ's Wholesale Club, Inc.* ................... 7,400 270,100
CNET, Inc.* .................................. 2,200 124,850
Cox Radio, Inc.* ............................. 1,300 129,675
Dayton-Hudson Corp. .......................... 2,400 176,250
Diedrich Coffee, Inc.* ....................... 17,000 69,063
Ethan Allen Interiors, Inc. .................. 3,550 113,822
Ford Motor Co. ............................... 1,400 74,813
Furniture Brands Intl., Inc.* ................ 800 17,600
Gannett Co., Inc. ............................ 2,100 171,281
Linens'n Things, Inc.* ....................... 4,200 124,425
Mandalay Resort Group* ....................... 7,300 146,913
Masco Corp. .................................. 6,700 170,013
Meredith Corp. ............................... 2,300 95,881
Nordstrom, Inc. .............................. 3,900 102,131
Outback Steakhouse, Inc.* .................... 4,450 115,422
Skywest, Inc. ................................ 1,300 36,400
Telewest Communications plc ADR* ............. 3,163 174,756
The Cheesecake Factory, Inc.* ................ 2,700 94,500
The Men's Wearhouse, Inc.* ................... 2,600 76,375
Tiffany & Co. ................................ 2,850 254,363
TJX Companies ................................ 4,100 83,794
Young & Rubicam, Inc. ........................ 3,500 247,625
----------
3,325,928
----------
CONSUMER, NON-CYCLICAL (2.7%)
Albertson's, Inc. ............................ 3,900 125,775
American Home Products Corp. ................. 1,400 55,213
Baxter International, Inc. ................... 1,700 106,781
Bestfoods .................................... 2,100 110,381
Cardinal Health, Inc. ........................ 2,100 100,538
Cygnus, Inc.* ................................ 4,000 73,000
Diageo plc-- Sponsored ADR ................... 2,000 64,000
Dura Pharmaceuticals, Inc.* .................. 5,500 76,656
Enzon, Inc.* ................................. 2,100 91,088
Forest Laboratories, Inc.* ................... 3,500 215,031
Fort James Corp. ............................. 4,300 117,713
IDEC Pharmaceuticals Corp.* .................. 400 39,300
Lilly (Eli) & Co. ............................ 1,500 99,750
Medimmune, Inc.* ............................. 1,100 182,463
Medquist, Inc.* .............................. 1,200 30,975
Minimed, Inc.* ............................... 2,400 175,800
SangStat Medical Corp.* ...................... 2,900 86,275
Sepracor, Inc.* .............................. 700 69,431
US Foodservice* .............................. 4,400 73,700
Williams-Sonoma, Inc.* ....................... 1,200 55,200
----------
1,949,070
----------
ENERGY (2.2%)
BP Amoco Corp. ............................... 3,434 203,679
Calpine Corp.* ............................... 4,050 259,200
Exxon Mobil Corp. ............................ 2,376 191,417
Midcoast Energy Res., Inc. ................... 1,400 23,450
Nabors Industries, Inc.* ..................... 4,000 123,750
Quanta Services, Inc.* ....................... 3,200 90,400
Schlumberger, Ltd. ........................... 3,000 168,750
Total Fina S.A.-- ADR ........................ 2,470 171,048
USX-Marathon Group ........................... 7,200 177,750
Varco International, Inc.* ................... 6,000 61,125
Weatherford International, Inc.* ............. 2,400 95,850
----------
1,566,419
----------
FINANCIAL (4.7%)
American General Corp. ....................... 1,100 83,463
American Int'l. Group, Inc. .................. 3,156 341,243
Arden Realty Group ........................... 5,300 106,331
Bank of America Corp. ........................ 4,823 242,054
Boston Properties, Inc. ...................... 2,400 74,700
Citigroup, Inc. .............................. 11,850 658,416
Compass Bancshares Inc., ..................... 2,700 60,244
Cullen/Frost Bankers, Inc. ................... 2,600 66,950
Equity Res. Pptys. Tr. Co. ................... 2,600 110,988
Fannie Mae ................................... 2,100 131,119
Fleet Boston Financial Corp. ................. 3,600 125,325
HCC Insurance Holdings, Inc. ................. 5,100 67,256
Heller Financial, Inc. ....................... 5,200 104,325
Kimco Realty Corp ............................ 2,700 91,463
Mack-Cali Realty Corp. ....................... 3,700 96,431
Morgan Stanley Dean Witter ................... 2,000 285,500
Natl. Commerce Bancorp ....................... 2,600 58,988
Providian Financial Corp. .................... 1,600 145,700
SL Green Realty Corp. ........................ 6,100 132,675
Spieker Pptys., Inc. ......................... 3,200 116,600
Vornado Rlty. Trust .......................... 3,200 104,000
Washington Mutual, Inc. ...................... 4,300 111,800
Wells Fargo & Company ........................ 2,800 113,225
----------
3,428,796
----------
INDUSTRIAL (6.2%)
Applied Materials, Inc.* ..................... 5,900 747,456
Asyst Technologies, Inc.* .................... 1,600 104,900
BISYS Group, Inc.* ........................... 2,200 143,550
Caterpillar, Inc. ............................ 2,000 94,125
Citadel Communications, Corp.* ............... 1,700 110,288
Coinstar, Inc.* .............................. 3,400 47,600
CommScope, Inc.* ............................. 1,900 76,594
Computer Sciences Corp.* ..................... 1,700 160,863
Conexant Systems, Inc.* ...................... 3,400 225,675
Covenant Transport, Inc. Cl A* ............... 4,600 79,925
CSG Systems Intl., Inc.* ..................... 1,900 75,763
Dycom Industries, Inc.* ...................... 2,200 96,938
Emerson Electric Co. ......................... 1,300 74,588
EOG Resources, Inc. .......................... 2,800 49,175
FactSet Research Systems, Inc. ............... 2,000 159,250
Forward Air Corporation* ..................... 5,100 221,213
Honeywell International, Inc. ................ 1,800 103,838
Hooper Holmes, Inc. .......................... 8,150 209,863
Kent Electronics Corp.* ...................... 3,100 70,525
Kulicke and Soffa Industries, Inc.* .......... 2,200 93,638
Mettler-Toledo International, Inc.* .......... 2,200 84,013
Official Payments Corp.* ..................... 1,300 67,600
Pittway Corp. ................................ 700 31,369
PRI Automation, Inc.* ........................ 2,100 140,963
Radio One, Inc.* ............................. 1,300 119,600
Salem Communications Corp. Cl A* ............. 1,700 38,463
SDL, Inc.* ................................... 800 174,400
Semtech Corp.* ............................... 4,200 218,925
Spartech Corp. ............................... 3,400 109,650
Swift Transportation Co., Inc.* .............. 4,500 79,313
Time Warner Telecom, Inc. Cl. A* ............. 2,500 124,844
Transocean Offshore, Inc. .................... 581 19,566
True North Communications, Inc. .............. 1,900 84,906
The accompanying notes are an integral part of these financial statments.
38
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
Shares Value
------- ---------
ACTIVE ASSETS (Continued)
U.S. Xpress Enterprises, Inc. Cl A* .......... 4,600 $ 33,925
Varian Semiconductor Equipment
Associates, Inc.* ............................ 2,800 95,200
Williams Cos., Inc. .......................... 4,800 146,700
-----------
4,515,204
-----------
Technology (16.4%)
3Com Corp* ................................... 6,200 291,400
Altera Corp.* ................................ 3,600 178,425
ANTEC Corp.* ................................. 2,700 98,550
Applied Micro Circuits, Corp.* ............... 3,200 407,200
ASM Lithography Holding NV* .................. 1,900 216,125
AT&T Corp. ................................... 3,300 167,475
Atmel Corp.* ................................. 16,800 496,650
ATMI, Inc.* .................................. 2,700 89,269
Aware, Inc.* ................................. 1,300 47,288
Broadcom Corp.* .............................. 500 136,188
Business Objects S.A.-- Sp ADR* .............. 800 106,900
Ciena Corp.* ................................. 4,400 253,000
Cisco Systems, Inc.* ......................... 24,800 2,656,700
Compaq Computer Corp. ........................ 13,700 370,756
Critical Path, Inc.* ......................... 2,000 188,750
Dallas Semiconductor Corp. ................... 1,200 77,325
Digital Island, Inc.* ........................ 1,100 104,638
Dionex Corp.* ................................ 2,700 111,206
Documentum, Inc.* ............................ 1,000 59,875
E-Speed, Inc., Cl A* ......................... 3,000 106,688
Efficient Networks, Inc.* .................... 1,700 115,600
Emulex Corp.* ................................ 1,500 168,750
Exodus Communications, Inc.* ................. 1,600 142,100
Hewlett-Packard Co. .......................... 1,000 113,938
Intel Corp. .................................. 9,000 740,813
Intl. Business Machines Corp. ................ 1,600 172,800
Intuit, Inc.* ................................ 6,900 413,569
JDA Software Group, Inc.* .................... 6,800 111,350
Lattice Semiconductor Corp. .................. 2,000 94,250
Legato Systems, Inc.* ........................ 3,600 247,725
Linear Technology Corp. ...................... 8,900 636,906
Manugistics Group, Inc.* ..................... 3,000 96,938
Maxim Integrated Products, Inc.* ............. 13,800 651,188
Mcleod USA, Inc.* ............................ 2,400 141,300
Microchip Technology, Inc.* .................. 2,800 191,625
Microsoft Corp.* ............................. 1,700 198,453
Networks Associates, Inc.* ................... 4,700 125,431
Novellus Systems, Inc.* ...................... 1,200 147,038
Parametric Technology Corp.* ................. 9,800 265,213
Protein Design Labs, Inc.* ................... 900 63,000
Sawtek, Inc.* ................................ 1,600 106,500
Vignette Corporation* ........................ 600 97,800
Vitesse Semiconductor Corp.* ................. 1,600 83,900
Waters Corp.* ................................ 1,800 95,400
Xerox Corp. .................................. 2,500 56,719
Xilinx, Inc.* ................................ 9,800 445,594
-----------
11,888,308
-----------
Utilities (2.0%)
El Paso Energy Corp. ......................... 2,700 104,794
GTE Corp. .................................... 2,200 155,238
Illinova Corp. ............................... 3,200 111,200
ITC DeltaCom, Inc.* .......................... 4,500 124,313
Kinder Morgan, Inc. .......................... 4,800 96,900
MCI WorldCom, Inc.* .......................... 2,700 143,269
MDU Resources Group .......................... 3,900 78,000
Montana Pwr. Co. ............................. 3,100 111,794
NSTAR ........................................ 2,205 89,303
SBC Communications, Inc. ..................... 2,300 112,125
SIGCORP, Inc. ................................ 3,100 70,525
Western Wireless Corp. Cl A* ................. 2,700 180,225
-----------
1,377,686
-----------
Total Active Assets - Common Stocks
(Cost: $19,036,464) 39.6% ...................... $28,659,317
-----------
-------------
*Non-income producing security.
The accompanying notes are an integral part of these financial statments.
39
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
Face
Rate Maturity Amount Value
---- -------- ------ -----
ACTIVE ASSETS (Continued):
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER (1.7%)
Abbott Laboratories ................ 6.25% 01/13/00 $998,000 $ 995,917
Countrywide Credit Industries Inc. . 5.25 01/07/00 200,000 199,825
-----------
1,195,742
-----------
TOTAL ACTIVE ASSETS SHORT-TERM DEBT SECURITIES
(Cost: $1,195,742) 1.7% ...................................... 1,195,742
-----------
TOTAL ACTIVE ASSETS
(Cost: $20,232,206) 41.3% .................................... 29,855,059
-----------
TOTAL INVESTMENTS
(Cost: $42,808,697) 100.0% ................................... $72,345,739
===========
-------------
*Non-income producing security.
The accompanying notes are an integral part of these financial statments.
40
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
December 31, 1999
Shares Value
------- --------
INDEXED ASSETS:
COMMON STOCKS
3Com Corp. ....................................... 778 $ 36,566
Abbott Laboratories .............................. 3,474 126,150
Adaptec, Inc. .................................... 236 11,770
ADC Telecommunications, Inc. ..................... 342 24,816
Adobe Systems, Inc. .............................. 272 18,292
Advanced Micro Devices, Inc. ..................... 336 9,723
AES Corp. ........................................ 470 35,132
Aetna, Inc. ...................................... 342 19,088
Aflac, Inc. ...................................... 607 28,643
Air Products & Chemicals, Inc. ................... 524 17,587
Alberto-Culver Co. Cl A .......................... 125 3,227
Albertson's, Inc. ................................ 960 30,960
Alcan Aluminum Ltd. .............................. 507 20,882
ALCOA, Inc. ...................................... 837 69,471
Allegheny Technologies, Inc. ..................... 213 4,779
Allergan, Inc. ................................... 294 14,626
Allied Waste Industries, Inc. .................... 430 3,789
Allstate Corp. ................................... 1,823 43,752
Alltel Corp. ..................................... 697 57,633
Alza Corp. ....................................... 232 8,033
Amerada Hess Corp. ............................... 201 11,407
Ameren Corp. ..................................... 305 9,989
America Online, Inc. ............................. 5,061 381,789
American Electric Power,Inc ...................... 442 14,199
American Express Co. ............................. 1,026 170,572
American General Corp. ........................... 561 42,566
American Greetings Corp. Cl A .................... 149 3,520
American Home Products Corp. ..................... 2,945 116,143
American Int'l. Group, Inc. ...................... 3,491 377,464
Amgen, Inc. ...................................... 2,329 139,886
AMR Corp. ........................................ 340 22,780
Amsouth Bancorporation ........................... 899 17,362
Anadarko Petroleum Corp. ......................... 283 9,657
Analog Devices, Inc. ............................. 395 36,735
Andrew Corp. ..................................... 184 3,484
Anheuser-Busch Cos., Inc. ........................ 1,068 75,694
Aon Corp. ........................................ 585 23,400
Apache Corp. ..................................... 260 9,604
Apple Computer, Inc. ............................. 367 37,732
Applied Materials, Inc. .......................... 857 108,571
Archer-Daniels-Midland Co. ....................... 1,372 16,721
Armstrong World Inds., Inc. ...................... 89 2,970
Ashland, Inc. .................................... 166 5,468
Associates First Capital Corp. Cl A .............. 1,663 45,629
AT&T Corp. ....................................... 7,206 365,704
Atlantic Richfield Co. ........................... 736 63,664
Autodesk, Inc. ................................... 132 4,455
Automatic Data Processing, Inc ................... 1,413 76,125
AutoZone, Inc. ................................... 334 10,792
Avery Dennison Corp. ............................. 252 18,364
Avon Products, Inc. .............................. 546 18,018
Baker Hughes, Inc. ............................... 751 15,818
Ball Corp ........................................ 69 2,717
Bank of America Corp. ............................ 3,850 193,222
Bank of New York Co., Inc. ....................... 1,679 67,160
Bank One Corp. ................................... 2,586 82,914
Bard (C.R.), Inc. ................................ 114 6,042
Barrick Gold Corp. ............................... 891 15,760
Bausch & Lomb, Inc. .............................. 125 8,555
Baxter International, Inc. ....................... 665 41,770
BB & T Corp. ..................................... 730 19,984
Bear Stearns Cos., Inc. .......................... 270 11,542
Becton Dickinson & Co. ........................... 572 15,301
Bed Bath & Beyond, Inc. .......................... 319 11,085
Bell Atlantic Corp. .............................. 3,502 215,592
BellSouth Corp. .................................. 4,245 198,719
Bemis, Inc. ...................................... 117 4,080
Best Buy, Inc. ................................... 465 23,337
Bestfoods ........................................ 637 33,482
Bethlehem Steel Corp. ............................ 299 2,504
Biomet, Inc. ..................................... 250 10,000
Black & Decker Corp. ............................. 196 10,241
Block (H. & R.), Inc. ............................ 217 9,494
BMC Software, Inc. ............................... 546 43,646
Boeing Co. ....................................... 2,107 87,572
Boise Cascade Corp. .............................. 125 5,062
Boston Scientific Corp. .......................... 944 20,650
Briggs & Stratton Corp. .......................... 52 2,788
Bristol-Myers Squibb Co. ......................... 4,473 287,111
Brown-Forman Corp. Cl B .......................... 152 8,702
Brunswick Corp. .................................. 204 4,539
Burlington Northern Santa Fe ..................... 1,030 24,977
Burlington Resources, Inc. ....................... 497 16,432
Cabletron Systems, Inc. .......................... 398 10,348
Campbell Soup Co. ................................ 991 38,339
Capital One Financial Corp. ...................... 451 21,733
Cardinal Health, Inc. ............................ 622 29,778
Carnival Corp. ................................... 1,401 66,985
Carolina Power & Light Co. ....................... 355 10,805
Caterpillar, Inc. ................................ 812 38,215
CBS Corp. ........................................ 1,741 111,315
Cendant Corp. .................................... 1,603 42,580
Centex Corp. ..................................... 132 3,259
Central & South West Corp. ....................... 486 9,720
CenturyTel, Inc. ................................. 319 15,113
Ceridian Corp. ................................... 331 7,137
Champion International Corp. ..................... 213 13,193
Charles Schwab Corp. ............................. 1,868 71,684
Chase Manhattan Corp. ............................ 1,860 144,499
Chevron Corp. .................................... 1,498 129,764
Chubb Corp. ...................................... 402 22,638
CIGNA Corp. ...................................... 425 34,239
Cincinnati Financial Corp. ....................... 377 11,758
CINergy Corp. .................................... 363 8,757
Circuit City Group, Inc. ......................... 459 20,684
Cisco Systems, Inc. .............................. 7,376 790,154
Citigroup, Inc. .................................. 7,603 422,442
Citrix Systems, Inc. ............................. 201 24,723
Clear Channel Communications, Inc. ............... 771 68,812
Clorox Co. ....................................... 539 27,152
CMS Energy Corp. ................................. 270 8,421
Coastal Corp. .................................... 487 17,258
Coca-Cola Co. .................................... 5,570 324,452
Coca-Cola Enterprises, Inc. ...................... 970 19,521
Colgate-Palmolive Co. ............................ 1,331 86,515
Columbia Energy Group ............................ 186 11,765
Columbia/HCA Healthcare Corp. .................... 1,289 37,784
Comcast Corp. Cl A ............................... 1,711 86,512
Comerica, Inc. ................................... 357 16,667
Compaq Computer Corp. ............................ 3,834 103,758
Computer Associates Intl., Inc ................... 1,228 85,883
Computer Sciences Corp. .......................... 365 34,538
Compuware Corp. .................................. 816 30,396
Comverse Technology Inc. ......................... 160 23,160
Conagra, Inc. .................................... 1,115 25,157
Conoco, Inc. Cl B ................................ 1,432 35,621
The accompanying notes are an integral part of these financial statments.
41
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
Shares Value
------- ----------
INDEXED ASSETS (Continued):
COMMON STOCKS (CONTINUED)
Conseco, Inc. ..................................... 747 $ 13,353
Consolidated Edison, Inc. ......................... 505 17,422
Consolidated Natural Gas Co. ...................... 213 13,832
Consolidated Stores Corp. ......................... 244 3,965
Constellation Energy Group, Inc. .................. 342 9,918
Cooper Industries, Inc. ........................... 210 8,492
Cooper Tire & Rubber Co. .......................... 169 2,630
Coors (Adolph) Co. Cl B ........................... 81 4,252
Corning, Inc. ..................................... 559 72,076
Costco Wholesale Corp. ............................ 504 45,990
Countrywide Credit Industries, Inc. ............... 251 6,338
Crane Co. ......................................... 153 3,041
Crown Cork & Seal, Inc. ........................... 272 6,086
CSX Corp. ......................................... 497 15,593
Cummins Engine Co., Inc. .......................... 93 4,493
CVS Corp. ......................................... 895 35,744
Dana Corp. ........................................ 369 11,047
Danaher Corp. ..................................... 316 15,247
Darden Restaurants, Inc. .......................... 297 5,383
Dayton-Hudson Corp. ............................... 1,010 74,172
Deere & Co. ....................................... 534 23,162
Dell Computer Corp. ............................... 5,730 292,230
Delphi Automotive Systems Corp .................... 1,290 20,317
Delta Air Lines, Inc. ............................. 315 15,691
Deluxe Corp. ...................................... 173 4,747
Dillard's Inc. Cl A ............................... 238 4,805
Disney (Walt) Co. ................................. 4,651 136,042
Dollar General Corp. .............................. 600 13,650
Dominion Resources, Inc. .......................... 438 17,191
Donnelley (R.R.) & Sons Co. ....................... 290 7,196
Dover Corp. ....................................... 476 21,598
Dow Chemical Co. .................................. 503 67,213
Dow Jones & Co., Inc. ............................. 201 13,668
DTE Energy Co. .................................... 323 10,134
Du Pont (E.I.) de Nemours & Co .................... 2,356 155,234
Duke Energy Corp. ................................. 833 41,754
Dun & Bradstreet Corp. ............................ 368 10,856
Eastern Enterprises ............................... 59 3,389
Eastman Chemical Co. .............................. 176 8,393
Eastman Kodak Co. ................................. 723 47,899
Eaton Corp. ....................................... 159 11,547
Ecolab, Inc. ...................................... 288 11,268
Edison International .............................. 793 20,767
El Paso Energy Corp. .............................. 520 20,182
Electronic Data Systems Corp. ..................... 1,062 71,088
EMC Corp. ......................................... 2,314 252,804
Emerson Electric Co. .............................. 992 56,916
Engelhard Corp. ................................... 288 5,436
Enron Corp. ....................................... 1,630 72,331
Entergy Corp. ..................................... 564 14,523
Equifax, Inc. ..................................... 320 7,540
Exxon Mobil Corp. ................................. 7,788 627,421
Fannie Mae ........................................ 2,311 144,293
FDX Corp. ......................................... 679 27,797
Federated Department Stores, Inc. ................. 467 23,613
FHLMC ............................................. 1,588 74,735
Fifth Third Bancorp ............................... 689 50,555
First Data Corp. .................................. 945 46,600
First Union Corp. ................................. 2,227 73,073
Firstar Corp. ..................................... 2,210 46,686
FirstEnergy Corp. ................................. 528 11,979
FleetBoston Financial Corp. ....................... 2,065 71,888
Fleetwood Enterprises, Inc. ....................... 78 1,609
Florida Progress Corp. ............................ 216 9,139
Fluor Corp. ....................................... 168 7,707
FMC Corp. ......................................... 70 4,012
Ford Motor Co. .................................... 2,724 145,564
Fort James Corp. .................................. 505 13,824
Fortune Brands, Inc. .............................. 380 12,564
Foster Wheeler Corp. .............................. 91 808
FPL Group, Inc. ................................... 403 17,253
Franklin Resources, Inc. .......................... 576 18,468
Freeport-McMoran Copper &
Gold, Inc.Cl B ................................. 373 7,880
Gannett Co., Inc. ................................. 639 52,118
Gap, Inc. ......................................... 1,958 90,068
Gateway, Inc. ..................................... 715 51,525
General Dynamics Corp. ............................ 455 24,001
General Electric Co. .............................. 7,399 1,144,995
General Instrument Corp. .......................... 396 33,660
General Mills, Inc. ............................... 698 24,953
General Motors Corp. .............................. 1,471 106,923
Genuine Parts Co. ................................. 400 9,925
Georgia-Pacific Group ............................. 392 19,894
Gillette Co. ...................................... 2,419 99,633
Global Crossing Ltd. .............................. 1,711 85,550
Golden West Financial Corp. ....................... 381 12,763
Goodrich (B.F.) Co. ............................... 244 6,710
Goodyear Tire & Rubber Co. ........................ 357 10,063
GPU, Inc. ......................................... 279 8,353
Grainger (W.W.), Inc. ............................. 207 9,897
Great Atlantic & Pac. Tea, Inc. ................... 85 2,369
Great Lakes Chemical Corp. ........................ 132 5,041
GTE Corp. ......................................... 2,192 154,673
Guidant Corp. ..................................... 690 32,430
Halliburton Holdings Co. .......................... 1,008 40,572
Harcourt General, Inc. ............................ 158 6,359
Harrah's Entertainment, Inc. ...................... 293 7,746
Hartford Financial Svs Gp, Inc .................... 516 24,445
Hasbro, Inc. ...................................... 437 8,330
HealthSouth Corp. ................................. 871 4,682
Heinz (H.J.) Co. .................................. 818 32,567
Helmerich & Payne, Inc. ........................... 110 2,399
Hercules, Inc. .................................... 235 6,551
Hershey Food Corp. ................................ 310 14,725
Hewlett-Packard Co. ............................... 2,313 263,537
Hilton Hotels Corp. ............................... 842 8,104
Home Depot, Inc. .................................. 5,192 355,942
Homestake Mining Co. .............................. 594 4,641
Honeywell International, Inc. ..................... 1,802 103,953
Household International, Inc. ..................... 1,060 39,485
Humana, Inc. ...................................... 383 3,136
Huntington Bancshares, Inc. ....................... 526 12,558
Ikon Office Solutions, Inc. ....................... 341 2,323
Illinois Tool Works, Inc. ......................... 685 46,280
IMS Health, Inc. .................................. 714 19,412
Inco Ltd. ......................................... 438 10,293
Ingersoll Rand Co. ................................ 377 20,759
Intel Corp. ....................................... 7,554 621,789
International Business Machines Corp. ............ 4,065 439,020
International Paper Co. ........................... 944 53,277
Interpublic Group of Cos., Inc. ................... 644 37,151
Intl. Flavors & Fragrances ........................ 236 8,909
ITT Industries, Inc. .............................. 195 6,520
Jefferson-Pilot Corp. ............................. 236 16,107
Johnson & Johnson ................................. 3,136 292,040
Johnson Controls, Inc. ............................ 189 10,749
Jostens, Inc. ..................................... 76 1,848
Kansas City Southern Inds., Inc. .................. 244 18,209
The accompanying notes are an integral part of these financial statments.
42
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
Shares Value
------- ----------
INDEXED ASSETS (CONTINUED):
COMMON STOCKS (CONTINUED)
Kaufman & Broad Home Corp. ....................... 107 $ 2,588
Kellogg Co. ...................................... 925 28,502
Kerr-McGee Corp. ................................. 192 11,904
KeyCorp .......................................... 1,025 22,678
Kimberly Clark Corp. ............................. 1,217 79,409
KLA-Tencor Corp. ................................. 195 21,718
Kmart Corp. ...................................... 1,127 11,340
Knight-Ridder, Inc. .............................. 185 11,008
Kohl's Corp. ..................................... 372 26,854
Kroger Co. ....................................... 1,894 35,749
Legget & Platt, Inc. ............................. 449 9,625
Lehman Brothers Holdings, Inc. ................... 274 23,204
Lexmark Intl Group Inc. Cl A ..................... 286 25,883
Lilly (Eli) & Co. ................................ 2,459 163,524
Limited, Inc. .................................... 489 21,180
Lincoln National Corp. ........................... 450 18,000
Liz Claiborne, Inc. .............................. 140 5,268
Lockheed Martin Corp. ............................ 902 19,731
Loews Corp. ...................................... 242 14,686
Longs Drug Stores Corp. .......................... 87 2,246
Louisiana-Pacific Corp. .......................... 242 3,449
Lowe's Companies, Inc. ........................... 871 52,042
LSI Logic Corp. .................................. 337 22,748
Lucent Technologies, Inc. ........................ 7,065 528,550
Mallinckrodt, Inc. ............................... 159 5,058
Manor Care, Inc. ................................. 247 3,952
Marriott International, Inc. Cl A ................ 568 17,928
Marsh & McLennan Cos., Inc. ...................... 603 57,700
Masco Corp. ...................................... 1,012 25,680
Mattel, Inc. ..................................... 960 12,600
May Department Stores Co. ........................ 763 24,607
Maytag Corp. ..................................... 196 9,408
MBIA, Inc. ....................................... 221 11,672
MBNA Corp. ....................................... 1,831 49,895
McDermott International, Inc. .................... 132 1,196
McDonald's Corp. ................................. 3,053 123,074
McGraw-Hill Cos., Inc. ........................... 449 27,670
MCI WorldCom, Inc. ............................... 6,417 340,502
McKesson HBOC, Inc. .............................. 642 14,485
Mead Corp. ....................................... 227 9,860
MediaOne Group, Inc. ............................. 1,385 106,385
Medtronic, Inc. .................................. 2,680 97,653
Mellon Financial Corp. ........................... 1,174 39,989
Merck & Co., Inc. ................................ 5,271 353,486
Meredith Corp. ................................... 116 4,836
Merrill Lynch & Co., Inc. ........................ 844 70,474
MGIC Investment Corp. ............................ 244 14,686
Micron Technology, Inc. .......................... 609 47,350
Microsoft Corp. .................................. 11,655 1,360,721
Milacron, Inc. ................................... 82 1,261
Millipore Corp. .................................. 98 3,785
Minnesota Mining & Mfg. Co. ...................... 920 90,045
Mirage Resorts, Inc. ............................. 454 6,952
Molex Inc. ....................................... 354 20,067
Monsanto Co. ..................................... 1,447 51,549
Morgan (J.P.) & Co., Inc. ........................ 394 49,890
Morgan Stanley Dean Witter & Co. ................. 1,256 179,294
Motorola, Inc. ................................... 1,387 204,236
Nabisco Group Holdings Corp. ..................... 745 7,916
NACCO Industries, Inc. Cl A ...................... 18 1,000
National City Corp. .............................. 1,412 33,447
National Semiconductor Corp. ..................... 384 16,440
National Service Industries ...................... 92 2,714
Navistar International Corp. ..................... 147 6,964
Network Appliance, Inc. .......................... 320 26,580
New Century Energies, Inc. ....................... 254 7,715
New York Times Co. Cl A .......................... 391 19,208
Newell Rubbermaid, Inc. .......................... 644 18,676
Newmont Mining Corp. ............................. 383 9,384
Nextel Communications, Inc. Cl A ................. 826 85,181
Niagara Mohawk Holdings, Inc. .................... 428 5,965
Nicor, Inc. ...................................... 106 3,445
Nike, Inc. Cl B .................................. 642 31,819
Nordstrom, Inc. .................................. 316 8,275
Norfolk Southern Corp. ........................... 869 17,815
Nortel Networks Corp ............................. 3,031 306,131
Northern States Power Co. ........................ 352 6,864
Northern Trust Corp. ............................. 494 26,182
Northrop Grumman Corp. ........................... 153 8,272
Novell, Inc. ..................................... 765 30,552
Nucor Corp. ...................................... 195 10,688
Occidental Petroleum Corp. ....................... 829 17,927
Office Depot, Inc. ............................... 742 8,116
Old Kent Financial Corp. ......................... 271 9,587
Omnicom Group, Inc. .............................. 397 39,700
Oneok, Inc. ...................................... 70 1,759
Oracle Corp. ..................................... 3,211 359,833
Owens Corning .................................... 121 2,337
Owens-Illinois, Inc. ............................. 356 8,922
Paccar, Inc. ..................................... 174 7,710
Pactiv Corp. ..................................... 389 4,133
Paine Webber Group, Inc. ......................... 324 12,575
Pall Corp. ....................................... 277 5,973
Parametric Technology Corp. ...................... 615 16,643
Parker Hannifin Corp. ............................ 241 12,366
Paychex, Inc. .................................... 562 22,480
PE Corp-PE Biosystems Group ...................... 233 28,033
Peco Energy Co. .................................. 426 14,804
Penney (J.C.) Co., Inc. .......................... 602 12,002
Peoples Energy Corp. ............................. 79 2,647
Peoplesoft, Inc. ................................. 555 11,828
Pep Boys-Manny, Moe & Jack ....................... 117 1,068
PepsiCo, Inc. .................................... 3,283 115,726
Perkin Elmer, Inc. ............................... 100 4,169
Pfizer, Inc. ..................................... 8,730 283,179
PG & E Corp. ..................................... 877 17,979
Pharmacia & Upjohn, Inc. ......................... 1,157 52,065
Phelps Dodge Corp. ............................... 202 13,577
Phillip Morris Cos., Inc. ........................ 5,336 123,729
Phillips Petroleum Co. ........................... 578 27,166
Pinnacle West Capital Corp. ...................... 194 5,929
Pitney Bowes, Inc. ............................... 611 29,519
Placer Dome, Inc. ................................ 743 7,987
PNC Bank Corp. ................................... 663 29,504
Polaroid Corp. ................................... 98 1,844
Potlatch Corp. ................................... 64 2,856
PP&L Resources, Inc. ............................. 324 7,412
PPG Industries, Inc. ............................. 396 24,775
Praxair, Inc. .................................... 364 18,314
Price (T. Rowe) & Associates, Inc. ............... 277 10,232
Proctor & Gamble Co. ............................. 2,964 324,743
Progressive Corp. of Ohio ........................ 161 11,773
Providian Financial Corp. ........................ 315 28,685
Public Svc. Enterprise Group, Inc. ............... 501 17,441
Pulte Corp. ...................................... 96 2,160
Quaker Oats Co. .................................. 303 19,884
Qualcomm, Inc. ................................... 1,468 258,735
Quintiles Transnational Corp. .................... 262 4,896
The accompanying notes are an integral part of these financial statments.
43
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
Shares Value
------- ---------
INDEXED ASSETS (Continued):
Common Stocks (Continued)
Ralston Purina Group ............................. 739 $ 20,600
Raytheon Co. Cl B ................................ 771 20,480
Reebok International Ltd. ........................ 126 1,032
Regions Financial Corp. .......................... 511 12,839
Reliant Energy, Inc. ............................. 676 15,464
Republic New York Corp. .......................... 233 16,776
Reynolds Metals Co. .............................. 143 10,957
Rite-Aid Corp. ................................... 591 6,612
Rockwell Intl., Corp. ............................ 437 20,921
Rohm & Haas Co. .................................. 497 20,222
Rowan Cos., Inc. ................................. 184 3,991
Royal Dutch Petroleum Co. N.Y .................... 4,836 292,276
Russell Corp. .................................... 76 1,273
Ryder System, Inc. ............................... 147 3,592
Safeco Corp. ..................................... 292 7,264
Safeway, Inc. .................................... 1,165 41,430
Sara Lee Corp. ................................... 2,063 45,515
SBC Communications, Inc. ......................... 7,693 375,034
Schering-Plough Corp. ............................ 3,313 139,767
Schlumberger, Ltd. ............................... 1,251 70,369
Scientific-Atlanta, Inc. ......................... 168 9,345
Scottish Power plc -- ADR ........................ * 27
Seagate Technology ............................... 476 22,164
Seagram Ltd. ..................................... 988 44,398
Sealed Air Corp. New ............................. 186 9,637
Sears Roebuck & Co. .............................. 869 26,450
Sempra Energy .................................... 549 9,539
Service Corp. International ...................... 621 4,308
Shared Medical Systems Corp. ..................... 59 3,005
Sherwin-Williams Co. ............................. 387 8,127
Sigma-Aldrich Corp. .............................. 224 6,734
Silicon Graphics, Inc. ........................... 431 4,229
SLM Holding Corp. ................................ 361 15,252
Snap-On, Inc. .................................... 145 3,852
Solectron Corp. .................................. 669 63,639
Southern Co. ..................................... 1,518 35,673
Southtrust Corp. ................................. 382 14,444
Southwest Airlines Co. ........................... 1,151 18,632
Springs Industries, Inc. ......................... 40 1,598
Sprint Corp. (FON Group) ......................... 1,981 133,346
Sprint Corp. (PCS Group) ......................... 972 99,630
St. Jude Medical, Inc. ........................... 187 5,739
St. Paul Companies, Inc. ......................... 518 17,450
Stanley Works .................................... 198 5,965
Staples, Inc. .................................... 1,061 22,016
State Street Corp. ............................... 368 26,887
Summit Bancorp ................................... 404 12,373
Sun Microsystems, Inc. ........................... 3,534 273,664
Sunoco, Inc. ..................................... 201 4,724
Suntrust Banks, Inc. ............................. 735 50,577
Supervalu, Inc. .................................. 309 6,180
Synovus Financial Corp. .......................... 620 12,323
Sysco Corp. ...................................... 756 29,909
Tandy Corp. ...................................... 441 21,692
Tektronix, Inc. .................................. 104 4,043
Tellabs, Inc. .................................... 894 57,384
Temple-Inland, Inc. .............................. 124 8,176
Tenet Healthcare Corp. ........................... 709 16,662
Teradyne, Inc. ................................... 391 25,806
Texaco, Inc. ..................................... 1,262 68,542
Texas Instruments, Inc. .......................... 1,794 173,794
Texas Utilities Co. .............................. 631 22,440
Textron, Inc. .................................... 334 25,614
Thermo Electron Corp. ............................ 354 5,310
Thomas & Betts Corp. ............................. 126 4,016
Time Warner, Inc. ................................ 2,901 210,141
Times Mirror Co. ................................. 136 9,112
Timken Co. ....................................... 138 2,820
TJX Companies .................................... 725 14,817
Torchmark Corp. .................................. 296 8,603
Tosco Corp. ...................................... 348 9,461
Toys R Us, Inc. .................................. 559 8,001
Transocean Sedco Forex, Inc. ..................... 242 8,159
Tribune Co. ...................................... 541 29,789
Tricon Global Restaurants Inc. ................... 351 13,557
TRW, Inc. ........................................ 277 14,387
Tupperware Corp. ................................. 128 2,168
Tyco International Ltd. .......................... 3,821 148,541
U.S. Bancorp ..................................... 1,641 39,076
U.S. West, Inc. .................................. 1,152 82,944
Unicom Corp. ..................................... 496 16,616
Unilever N.V ..................................... 1,305 71,041
Union Carbide Corp. .............................. 296 19,758
Union Pacific Corp. .............................. 566 24,692
Union Pacific Resources Group, Inc. .............. 575 7,331
Union Planters Corp. ............................. 326 12,857
Unisys Corp. ..................................... 699 22,324
United Healthcare Corp. .......................... 396 21,038
United Technologies Corp. ........................ 1,100 71,500
Unocal Corp. ..................................... 554 18,594
UNUMProvident Corp. .............................. 545 17,474
US Airways Group Inc. ............................ 164 5,258
UST, Inc. ........................................ 390 9,823
USX-Marathon Group ............................... 705 17,405
USX-U.S. Steel Group ............................. 197 6,501
V F Corp. ........................................ 267 8,010
Viacom, Inc. Cl B ................................ 1,591 96,156
Vulcan Materials Co. ............................. 224 8,946
W.R. Grace & Co. ................................. 163 2,262
Wachovia Corp. ................................... 462 31,416
Wal-Mart Stores, Inc. ............................ 10,036 693,739
Walgreen Co. ..................................... 2,292 67,041
Warner-Lambert Co. ............................... 1,952 159,942
Washington Mutual, Inc. .......................... 1,322 34,372
Waste Management, Inc. ........................... 1,414 24,303
Watson Pharmaceuticals, Inc. ..................... 212 7,592
Wellpoint Health Networks Inc. Cl A .............. 150 9,891
Wells Fargo & Company ............................ 3,704 149,781
Wendy's International, Inc. ...................... 277 5,713
Westvaco Corp. ................................... 223 7,275
Weyerhaeuser Co. ................................. 538 38,635
Whirlpool Corp. .................................. 169 10,996
Willamette Industries, Inc. ...................... 247 11,470
Williams Cos., Inc. .............................. 992 30,318
Winn-Dixie Stores, Inc. .......................... 331 7,923
Worthington Industries, Inc. ..................... 206 3,412
Wrigley (Wm.) Jr. Co. ............................ 258 21,398
Xerox Corp. ...................................... 1,514 34,349
Xilinx, Inc. ..................................... 722 32,828
Yahoo!, Inc. ..................................... 594 257,016
-----------
Total Indexed Assets--Common Stocks
(Cost: $25,839,134) 94.6% .......................... $27,861,578
-----------
-------------
* Fractional share attributable to Corporate Action
The accompanying notes are an integral part of these financial statments.
44
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
Face
Rate Maturity Amount Value
---- -------- ------ -----
SHORT-TERM DEBT SECURITIES:
U.S. GOVERNMENT (0.3%)
U.S. Treasury Bill (a) ......... 5.13% 01/20/00 $100,000 $ 99,728
-----------
AGENCIES (1.5%)
Federal Home Loan Bank. ........ 4.75 01/12/00 439,000 438,363
-----------
COMMERCIAL PAPER (3.6%)
Novartis Finance Corp. ......... 5.15 01/24/00 550,000 548,190
Snap-On, Inc. .................. 4.00 01/03/00 500,000 499,889
-----------
1,048,079
-----------
TOTAL SHORT-TERM DEBT SECURITIES
(Cost: $1,586,170) 5.4% ...................................... 1,586,170
-----------
TOTAL INVESTMENTS
(Cost: $27,425,304) 100.0% ................................... $29,447,748
===========
-------------
FUTURES CONTRACTS OUTSTANDING AS OF DECEMBER 31, 1999:
Expiration Underlying Face Unrealized
Date Amount at Value Gain
---------- --------------- ----------
Purchased
4 S&P 500 Stock Index Futures
Contracts ...................... March 2000 $1,484,200 $48,763
========== =======
The face value of futures purchased and outstanding as percentage of total
investment in securities: 5.0%.
-------------
(a) The security has been segregated to cover initial requirements on open
futures contracts.
The accompanying notes are an integral part of these financial statments.
45
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
December 31, 1999
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
---- -------- ------ -----
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES:
U.S. GOVERMENT (18.8%)
U.S. Treasury Bond ................ 7.13% 02/15/23 $1,500,000 $ 1,561,635
U.S. Treasury Note ................ 6.63 04/30/02 500,000 503,830
U.S. Treasury Note ................ 6.50 05/15/05 3,250,000 3,251,007
------------
5,316,472
------------
AGENCIES/OTHER (11.4%)
FHLMC ............................. 8.00 07/15/06 187,312 190,180
FHLMC ............................. 6.50 10/15/06 178,675 177,781
FHLMC ............................. 7.63 09/09/09 500,000 493,830
FNMA .............................. 7.00 11/25/05 422,106 421,051
FNMA .............................. 7.00 10/25/07 1,000,000 993,430
Republic of Iceland ............... 6.13 02/01/04 1,000,000 955,160
------------
3,231,432
------------
BASIC MATERIALS (5.5%)
Georgia-Pacific (Timber Group) .... 8.63 04/30/25 250,000 245,353
Millennium America Inc. ........... 7.63 11/15/26 1,000,000 831,680
Praxair, Inc. ..................... 6.90 11/01/06 500,000 472,410
------------
1,549,443
------------
CONSUMER, CYCLICAL (9.3%)
Fruit of the Loom, Inc. ........... 7.00 03/15/11 250,000 56,250
Fruit of the Loom, Inc. ........... 7.38 11/15/23 250,000 86,250
Oakwood Homes Corp. ............... 8.13 03/01/09 1,000,000 920,869
Polaroid Corp. .................... 7.25 01/15/07 250,000 213,115
Pulte Corp. ....................... 7.63 10/15/17 500,000 426,050
Tommy Hilfiger USA, Inc. .......... 6.50 06/01/03 500,000 474,155
Venator Group, Inc. ............... 7.00 10/15/02 500,000 455,000
------------
2,631,689
------------
CONSUMER, NON-CYCLICAL (10.3%)
Bausch & Lomb, Inc. ............... 6.75 12/15/04 500,000 478,905
Bausch & Lomb, Inc. ............... 6.38 08/01/03 500,000 484,495
Kellwood, Co. ..................... 7.88 07/15/09 1,000,000 911,820
Supervalu, Inc. ................... 8.88 11/15/22 1,000,000 1,051,210
------------
2,926,430
------------
ENERGY (5.2%)
Columbia Gas Systems, Inc. ........ 6.61 11/28/02 1,000,000 975,020
Arco Chemical Co. ................. 10.25 11/01/10 500,000 493,715
------------
1,468,735
------------
FINANCIAL (17.5%)
Bear Stearns Cos., Inc. ........... 6.63 10/01/04 1,000,000 959,120
Chase Manhattan Corp. ............. 6.88 12/12/12 1,000,000 963,410
Executive Risk, Inc. .............. 7.13 12/15/07 500,000 480,485
First American Financial .......... 7.55 04/01/28 500,000 428,660
Fremont Gen Corp. ................. 7.70 03/17/04 500,000 432,810
Harleysville Group Inc. ........... 6.75 11/15/03 250,000 241,190
Lehman Brothers Holdings, Inc. .... 0.00 07/28/28 1,000,000 88,210
Morgan (J.P.) & Co., Inc. ......... 0.00 04/15/27 2,500,000 241,125
Nationwide Health Properties, Inc. 7.90 11/20/06 500,000 432,510
</TABLE>
The accompanying notes are an integral part of these financial statments.
46
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
December 31, 1999
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
---- -------- --------- -----------
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
FINANCIAL (CONTINUED)
Rank Group Financial, Inc. ........ 6.75% 11/30/04 $ 500,000 $ 462,945
Triad Guaranty, Inc. .............. 7.90 01/15/28 250,000 229,350
-----------
4,959,815
-----------
INDUSTRIAL (12.2%)
Clark Equipment Co. ............... 8.35 05/15/23 500,000 515,500
Geon Co. .......................... 7.50 12/15/15 250,000 227,765
Owens Corning ..................... 7.00 03/15/09 1,000,000 879,970
Thermo Electron Corp. ............. 4.25 01/01/03 1,000,000 843,750
Williams Cos., Inc. ............... 6.50 11/15/02 1,000,000 976,000
-----------
3,442,985
-----------
UTILITIES (1.7%)
UtiliCorp United, Inc ............. 8.00 03/01/23 500,000 488,815
-----------
TOTAL LONG-TERM DEBT SECURITIES (Cost: $27,594,423) 91.9% ................. 26,015,816
-----------
SHORT-TERM DEBT SECURITIES:
AGENCIES (1.6%)
Federal Home Loan Bank ............ 4.75 01/12/00 447,000 446,351
-----------
COMMERCIAL PAPER (6.5%)
Abbott Laboratories ............... 6.25 01/13/00 696,000 694,547
General Electric Capital Corp. .... 6.33 01/18/00 400,000 398,801
UBS Finance (Delw.) Inc. .......... 4.00 01/03/00 753,000 752,833
-----------
1,846,181
-----------
TOTAL SHORT-TERM DEBT SECURITIES (Cost $2,292,532) 8.1% ................... 2,292,532
-----------
TOTAL INVESTMENTS 100.0% (Cost: $29,886,955) .............................. $28,308,348
===========
</TABLE>
-------------
Abbreviations: FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
The accompanying notes are an integral part of these financial statments.
47
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (MONEY MARKET FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
December 31, 1999
<TABLE>
<CAPTION>
Discount Face
Rating* Rate Maturity Amount Value
------- -------- -------- ------ -----------
<S> <C> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
AGENCIES (10.0%)
Federal Home Loan Mtge. Corp. ..... 5.44% 01/14/00 $2,030,000 $ 2,025,981
Federal National Mortgage
Association ..................... 5.51% 01/18/00 1,000,000 997,375
----------
3,023,356
----------
COMMERCIAL PAPER (90.0%)
Albertson's, Inc. ................ A1/P1 5.89 1/14/00 984,000 981,892
Allied Signal, Inc. .............. A1/P1 5.90 1/27/00 720,000 716,916
American Express Credit Corp. .... A1/P1 5.80 1/19/00 720,000 717,894
Associates Corp. ................. A1+/P1 5.92 2/04/00 921,000 915,829
AT&T Corp. ....................... A1+/P1 6.01 1/25/00 1,000,000 995,981
Baltimore Gas & Electric Co. ..... A1/P1 5.88 1/14/00 1,000,000 997,868
Bear Stearns Cos., Inc. (The) .... A1/P1 5.94 1/10/00 1,000,000 998,493
Becton Dickinson & Co. ........... A1/P1 5.30 1/24/00 1,200,000 1,195,934
BellSouth Telecommunications ..... A1+/P1 5.05 2/02/00 1,000,000 995,510
Bemis, Inc. ...................... A1/P1 6.00 1/18/00 660,000 658,108
British Telecommunications PLC ... A1+/P1 5.85 1/18/00 632,000 630,241
Carolina Power & Light Corp. ..... A1/P1 6.18 1/18/00 212,000 211,379
Carolina Power & Light Corp. ..... A1/P1 6.15 1/28/00 494,000 491,712
Central Illinois Lighting Co. .... A1+/P 6.40 1/25/00 600,000 597,422
CIT Group Holdings ............... A1/P1 5.98 1/04/00 975,000 974,509
Daimler Chrysler NA Holdings Corp. A1/P1 6.10 1/18/00 1,000,000 997,110
Ford Motor Credit Corp. .......... A1/P1 6.26 1/10/00 1,000,000 998,430
General Electric Capital Corp. ... A1+/P1 5.90 1/27/00 570,000 567,560
General Electric Capital Corp. ... A1+/P1 5.98 2/08/00 400,000 397,465
Great Lakes Chemical Corp. ....... A1/P1 5.90 1/28/00 1,000,000 995,557
IBM Credit Corp. ................. A1/P1 5.90 1/21/00 500,000 498,353
Koch Industries, Inc. ............ A1+/P1 5.85 1/10/00 630,000 629,072
Minnesota Mining & Mfg. Co. ...... A1+/P1 6.05 1/28/00 640,000 637,088
Motorola Credit Corp. ............ A1+/P1 6.50 1/27/00 250,000 248,824
Motorola Credit Corp. ............ A1+/P1 5.60 3/31/00 320,000 315,470
Nicor, Inc. ...................... A1/P1 6.00 1/18/00 800,000 797,725
Northern Illinois Gas Co. ........ A1+/P1 5.88 1/21/00 1,035,000 1,031,605
Panasonic Finance, Inc. .......... A1+/P1 5.87 2/03/00 1,000,000 994,596
Pfizer, Inc. ..................... A1/P1 6.52 1/19/00 1,000,000 996,735
Pitney Bowes Inc. ................ A1+/P1 5.20 1/28/00 1,060,000 1,055,864
Sony Capital Corp. ............... A1/P1 6.30 1/26/00 1,105,000 1,100,153
South Carolina Electric & Gas .... A1/P1 6.60 1/31/00 533,000 530,063
Toyota Credit de Puerto Rico Corp. A1/P1 6.02 2/03/00 795,000 790,595
Toyota Motor Credit Corp. ........ A1+/P1 6.04 1/13/00 428,000 427,135
UBS Finance (Delw.) Inc. ......... A1+/P1 4.00 1/03/00 1,000,000 999,778
----------
27,088,866
----------
TOTAL SHORT-TERM DEBT SECURITIES (Cost: $30,112,272) 100.0% ......................... $30,112,222
===========
</TABLE>
------------
* The ratings are provided by Standard & Poor's Corporation/Moody's
Investor Services. Inc.
The accompanying notes are an integral part of these financial statments.
48
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
<TABLE>
<CAPTION>
All America Equity Index Bond Money Market
Fund Fund Fund Fund
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments at market value (Notes 1 and 3)
(Cost:
All America Fund -- $42,808,697
Equity Index -- $27,425,304
Bond Fund -- $29,886,955
Money Market -- $30,112,272) ...... $72,345,739 $29,447,748 $28,308,348 $30,112,222
Cash ............................... 168,374 4,834 1,780 4,673
Interest and dividends receivable .. 56,754 25,190 420,086 --
Receivable for securities sold ..... 93,344 2,009 -- --
Shareholder subscriptions receivable -- -- -- 64,494
----------- ----------- ----------- -----------
TOTAL ASSETS ....................... 72,664,211 29,479,781 28,730,214 30,181,389
----------- ----------- ----------- -----------
Payable for securities purchased .. 197,065 -- -- --
Dividend payable to shareholders ... 98,966 859 8,295 9,187
Accrued expenses ................... 2,179 385 635 476
----------- ----------- ----------- -----------
TOTAL LIABILITIES .................. 298,210 1,244 8,930 9,663
----------- ----------- ----------- -----------
NET ASSETS ......................... $72,366,001 $29,478,537 $28,721,284 $30,171,726
=========== =========== =========== ===========
SHARES OUTSTANDING (Note 4) ........ 4,394,190 2,730,385 3,040,459 2,903,859
=========== =========== =========== ===========
NET ASSET VALUE PER SHARE .......... $16.47 $10.80 $9.45 $10.39
====== ====== ===== ======
</TABLE>
The accompanying notes are an integral part of these financial statments.
49
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999
<TABLE>
<CAPTION>
All America Equity Index Bond Money Market
Fund Fund(a) Fund Fund
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME (Note 1)
Dividends ...................................... $ 689,846 $ 220,075 $ -- $ --
Interest ....................................... 166,929 46,990 1,870,132 871,621
------------ ----------- ----------- ---------
Total Investment Income ........................... 856,775 267,065 1,870,132 871,621
------------ ----------- ----------- ---------
Expenses (Note 2):
Investment management fees ..................... 318,029 21,648 121,448 33,028
Directors' (independent) fees and expenses ..... 26,380 15,754 26,380 26,380
Custodian expenses ............................. 64,603 4,208 7,116 12,449
Accounting expenses ............................ 30,000 12,000 30,000 30,000
Transfer agent fees ............................ 32,286 12,779 27,663 33,902
Registration fees and expenses ................. 33,698 35,073 22,157 22,436
Audit .......................................... 10,775 5,000 6,350 4,875
Printing ....................................... 23,243 2,427 9,815 5,855
Other .......................................... 2,345 851 1,181 814
------------ ----------- ----------- ---------
Total Expenses before expense reimbursement ....... 541,359 109,740 252,110 169,739
Expense reimbursement ............................. (6,145) (53,455) (63,191) (103,684)
------------ ----------- ----------- ---------
Net Expenses ...................................... 535,214 56,285 188,919 66,055
------------ ----------- ----------- ---------
NET INVESTMENT INCOME ............................. 321,561 210,780 1,681,213 805,566
------------ ----------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 1):
Net realized gain (loss) from security transactions 9,735,794 194,402 (77,457) (43)
Net unrealized appreciation (depreciation)
of investments ................................. 4,620,245 2,022,444 (2,560,834) (50)
------------ ----------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ................................. 14,356,039 2,216,846 (2,638,291) (93)
------------ ----------- ----------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ...................... $ 14,677,600 $ 2,427,626 $ (957,078) $ 805,473
============ =========== =========== =========
</TABLE>
-------------
(a) Commenced operations May 3, 1999.
The accompanying notes are an integral part of these financial statements.
50
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31,
<TABLE>
<CAPTION>
All America Fund Equity Index Fund Bond Fund Money Market Fund
-------------------------- ----------------- ----------------------- --------------------------
1999 1998 1999(a) 1999 1998 1999 1998
---- ---- ------- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income .......... $ 321,561 $ 344,112 $ 210,780 $ 1,681,213 $ 1,385,514 $ 805,566 $ 209,895
Net realized gain (loss) on
investments .................. 9,735,794 1,118,467 194,402 (77,457) 152,581 (43) (145)
Net unrealized appreciation
(depreciation) of investments 4,620,245 10,652,968 2,022,444 (2,560,834) 346,222 (50) --
------------ ------------ ------------ ------------ ------------ ------------ -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS ..................... 14,677,600 12,115,547 2,427,626 (957,078) 1,884,317 805,473 209,750
------------ ------------ ------------ ------------ ------------ ------------ -----------
Dividend Distributions (Note 5):
From net investment income .. (313,199) (355,096) (206,332) (1,688,057) (1,398,540) (800,206) (209,896)
From capital gains .......... (9,376,382) (608,849) (54,088) (16,659) (535,067) -- --
------------ ------------ ------------ ------------ ------------ ------------ -----------
Total Distributions .............. (9,689,581) (963,945) (260,420) (1,704,716) (1,933,607) (800,206) (209,896)
------------ ------------ ------------ ------------ ------------ ------------ -----------
CAPITAL SHARE TRANSACTIONS
(Note 4):
Net Proceeds from sale
of shares .................. 5,281,443 2,124,083 27,076,821 5,911,602 1,216,884 29,396,830 5,332,372
Dividend reinvestments ....... 9,579,059 956,071 259,510 1,690,023 1,919,969 785,550 193,670
Cost of shares redeemed ...... (18,282,044) (105,395) (25,000) (1,453,099) -- (6,528,017) (6,525,496)
------------ ------------ ------------ ------------ ------------ ------------ -----------
NET INCREASE (DECREASE) IN
NET ASSETS FROM CAPITAL
SHARE TRANSACTIONS ............. (3,421,542) 2,974,759 27,311,331 6,148,526 3,136,853 23,654,363 (999,454)
------------ ------------ ------------ ------------ ------------ ------------ -----------
NET INCREASE (DECREASE) IN NET
ASSETS .. 1,566,477 14,126,361 29,478,537 3,486,732 3,087,563 23,659,630 (999,600)
NET ASSETS, BEGINNING OF PERIOD .. 70,799,524 56,673,163 -- 25,234,552 22,146,989 6,512,096 7,511,696
------------ ------------ ------------ ------------ ------------ ------------ -----------
NET ASSETS, END OF YEAR .......... $ 72,366,001 $ 70,799,524 $ 29,478,537 $ 28,721,284 $ 25,234,552 $ 30,171,726 $ 6,512,096
============ ============ ============ ============ ============ ============ ===========
COMPONENTS OF NET ASSETS:
Paid-in capital ................ $ 41,674,733 $ 45,096,275 $ 27,311,331 $ 30,599,549 $ 24,451,023 $ 30,166,066 $ 6,511,703
Accumulated undistributed net
investment income ............ 1,710 (6,652) 4,448 (13,375) (6,531) 5,941 581
Accumulated undistributed
net realized gain(loss) on
investments .................. 1,152,516 793,104 140,314 (286,283) (192,167) (231) (188)
Unrealized appreciation
(depreciation) of
investments .................. 29,537,042 24,916,797 2,022,444 (1,578,607) 982,227 (50) --
------------ ------------ ------------ ------------ ------------ ------------ -----------
NET ASSETS, END OF YEAR .......... $ 72,366,001 $ 70,799,524 $ 29,478,537 $ 28,721,284 $ 25,234,552 $ 30,171,726 $ 6,512,096
============ ============ ============ ============ ============ ============ ===========
</TABLE>
-------------
(a) Commenced operations May 3, 1999.
The accompanying notes are an integral part of these financial statements.
51
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Years Ended December 31,
------------------------------------------------------------
All America Fund Equity Index Fund
SELECTED PER SHARE AND ------------------------------------- -----------------
SUPPLEMENTARY DATA: 1999 1998 1997 1996(e) 1999(f)
-------------------- ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD .......... $15.08 $12.65 $10.98 $10.00 $10.00
------ ------ ------ ------ ------
Income from investment operations:
Net investment income ......................... 0.09 0.07 0.08 0.06 0.08
Net gains or losses on securities (realized and
unrealized) ................................ 3.81 2.57 2.77 0.98 0.82
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS .............. 3.90 2.64 2.85 1.04 0.90
------ ------ ------ ------ ------
Less dividend distributions:
From net investment income .................... (0.08) (0.08) (0.08) (0.06) (0.08)
From capital gains ............................ (2.43) (0.13) (1.10) -- (0.02)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS ........................... (2.51) (0.21) (1.18) (0.06) (0.10)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR .................. $16.47 $15.08 $12.65 $10.98 $10.80
====== ====== ====== ====== ======
Total return (%) (b) .......................... 26.0 21.0 26.0 10.4 9.0
Net assets, end of year ($ millions) .......... 72.4 70.8 56.7 55.5 29.5
Ratio of net investment income to average net
assets (%) ................................. 0.51 0.55 0.59 0.95(a) 1.22(a)
Ratio of expenses to average net assets (%). .. 0.85 0.84 0.84 0.87(a) 0.63(a)
Ratio of expenses to average net assets after
expense reimbursement (%) ................... 0.84 0.82 0.81 0.85(a) 0.32(a)
Portfolio turnover rate (%) (c) ......... 34.89 41.25 35.96 9.33 5.67
</TABLE>
<TABLE>
<CAPTION>
Years Ended December 31,
---------------------------------------------------------------
Bond Fund Money Market Fund
SELECTED PER SHARE AND ----------------------------------- ------------------------
SUPPLEMENTARY DATA: 1999 1998 1997 1996(e) 1999 1998 1997(d)
-------------------- ------- ------ ------ ------ ------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD .......... $10.41 $10.41 $10.13 $10.01 $10.23 $10.15 $10.00
------- ------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income ......................... 0.60 0.61 0.59 0.38 0.50 0.52 0.35
Net gains or losses on securities (realized and
unrealized) ................................ (0.87) 0.24 0.29 0.12 -- -- --
------ ------- ------- ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS .............. (0.27) 0.85 0.88 0.50 0.50 0.52 0.35
------ ------- ------- ------ ------ ------ ------
Less dividend distributions:
From net investment income .................... (0.60) (0.62) (0.59) (0.38) (0.34) (0.44) (0.20)
From capital gains ............................ (0.09) (0.23) (0.01) -- -- -- --
------ ------- ------- ------ ------ ------ ------
TOTAL DISTRIBUTIONS ........................... (0.69) (0.85) (0.60) (0.38) (0.34) (0.44) (0.20)
------ ------- ------- ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR .................. $ 9.45 $10.41 $10.41 $10.13 $10.39 $10.23 $10.15
====== ======= ======= ====== ====== ====== ======
Total return (%) (b) .......................... (3.5) 8.3 8.9 5.0 4.9 5.3 3.5
Net assets, end of year ($ millions) .......... 28.7 25.2 22.1 21.0 30.2 6.5 7.52
Ratio of net investment income to average net
assets (%) ................................. 6.23 5.84 5.69 5.63(a) 4.86 5.14 5.17(a)
Ratio of expenses to average net assets (%). .. 0.93 0.97 1.00 0.90(a) 1.02 3.21 2.47(a)
Ratio of expenses to average net assets after
expense reimbursement (%) .................. 0.70 0.70 0.70 0.70(a) 0.40 0.40 0.40(a)
Portfolio turnover rate (%) (c) ............... 10.07 33.32 56.18 17.85 N/A N/A N/A
</TABLE>
----------
(a) Annualized.
(b) Total return would have been lower had certain expenses not been reduced
through expense reimbursement (Note 2)
(c) Portfolio turnover rate excludes all short-term securities.
(d) Commenced operations May 1, 1997.
(e) Commenced operations May 1, 1996.
(f) Commenced operations May 3, 1999.
N/A = Not Applicable.
The accompanying notes are an integral part of these financial statements.
52
<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 four series of common stock
representing shares of the All America Fund, Equity Index 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, and, the Equity Index
Fund commenced operations onMay 3, 1999.
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 and the Equity Index Fund each maintain an indexed
assets portfolio. In order to remain more fully invested in the equity markets
while minimizing its transaction costs, the funds 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.
53
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (Continued)
2. EXPENSES AND OTHER TRANSACTIONS WITH AFFILIATES
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 annual rates
of .50%, .125%, .45%, and .20% of the value of the net assets for the All
America, Equity Index, Bond, and Money Market funds, respectively. 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 contractually 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%, .20%, .25%, and .20%, of the value of the net assets of the
All America, Equity Index, Bond, and Money Market funds, respectively. Accrual
of these other operating expenses is charged daily against each fund's net
assets. 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 rates of operating expenses charged daily to each fund are
subject to periodic adjustments 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 contractual
expense limitation agreement.
The Adviser's contractual agreement to limit each fund's total expenses
(excluding brokerage commissions, transfer taxes/fees and extraordinary
expenses) to annual rates of .85%, .325%, .70%, and .40% of the net assets of
the All America, Equity Index, Bond and Money Market funds, respectively, is in
effect through 2000 and continues in effect thereafter unless cancelled by the
Fund or the Adviser in accordance with the agreement.
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 expense reimbursement agreement of the Adviser described above.
A subadviser placed a portion of its portfolio transactions with its
affiliated broker-dealer; such commissions amounted to $11,843 or 25.3% of the
Fund's total commissions and represented 16.5% 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, 1999 was as follows:
<TABLE>
<CAPTION>
All America Equity Index Bond
Fund Fund Fund
----------- ----------- ----------
<S> <C> <C> <C>
Cost of investment purchases ................... $21,155,726 $26,474,380 $6,817,510
=========== =========== ==========
Proceeds from sales of investments ............. $34,482,995 $ 1,409,322 $1,050,620
=========== =========== ==========
Thecost of investment purchases and proceeds
from sales of U.S. Government (excluding
short-term) securities was as follows:
Cost of investment purchases ............. $ -- $ -- $ 499,490
=========== =========== ==========
Proceeds from sales of investments ....... $ -- $ -- $1,478,155
=========== =========== ==========
</TABLE>
54
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (Continued)
3. PURCHASES AND SALES (CONTINUED)
For the Money Market Fund, the cost of short-term securities purchases was
$229,496,686; net proceeds from sales and redemptions was $206,538,420.
At December 31, 1999 the net unrealized appreciation (depreciation) of
investments based on cost, which was substantially the same for Federal income
tax purposes, was as follows:
<TABLE>
<CAPTION>
All America Equity Index Bond Money Market
Fund Fund Fund Fund
------------ ----------- ----------- ------------
<S> <C> <C> <C> <C>
Unrealized appreciation ........................ $ 31,768,399 $ 4,453,973 $ 93,256 $ --
Unrealized (depreciation) ...................... (2,231,357) (2,431,529) (1,671,863) (50)
------------ ----------- ----------- ----
Net unrealized appreciation (depreciation) ..... $ 29,537,042 $ 2,022,444 $(1,578,607) $(50)
============ =========== =========== ====
</TABLE>
4. CAPITAL SHARE ACTIVITY AND AFFILIATED OWNERSHIP
At December 31, 1999 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 Equity Index,
Bond and Money Market Funds.
Transactions in shares during the year ending December 31, 1999 were as
follows:
<TABLE>
<CAPTION>
All America Equity Index Bond Money Market
Fund Fund Fund Fund
------------ ----------- -------- ------------
<S> <C> <C> <C> <C>
Shares issued ............................ 323,068 2,708,452(1) 584,104 2,816,850
Shares issued as reinvestment of dividends 581,747 24,359 175,301 75,749
Shares redeemed .......................... (1,204,133)(2) (2,426) (144,108) (625,078)
---------- ---------- -------- ----------
Net increase (decrease) .................. (299,318) 2,730,385 615,297 2,267,521
========== ========== ======== ==========
</TABLE>
As at December 31, 1999, Mutual Of America Life Insurance Company and its
subsidiaries (affiliates of the Adviser) were shareholders of each fund's
outstanding shares as follows:
All America Fund .............................. 86%
Equity Index Fund ............................. 92%
Bond Fund ..................................... 79%
Money Market Fund ............................. 5%
5. DIVIDENDS
On December 31, 1999 dividend distributions were declared and paid from
accumulated net investment income to shareholders of record on June 29, 1999.
Pursuant to shareholders' instructions, substantially all dividend distributions
were immediately reinvested in additional shares of each fund (see Note 4
above).
Money
All America Equity Index Bond Market
Fund Fund Fund Fund
---------- --------- ---------- ---------
Distributions from:
Net investment income ..... $ 313,199 $206,332 $1,688,057 $800,206
Net realized capital gains 9,376,382 54,088 16,659 --
---------- -------- ---------- --------
Total dividend distributions $9,689,581 $260,420 $1,704,716 $800,206
========== ======== ========== ========
Dividend amounts per share .. $ 2.507365 $.097371 $ .686814 $.338572
========== ======== ========== ========
----------------
(1) Includes the initial seed investment by Mutual of America Life Insurance
Company of $25 million, represented by 2,500,000 shares.
(2) During February 1999, Mutual of America Life Insurance Company redeemed 1.1
million shares realizing proceeds of approximately $16.6 million, reducing
the Fund's net assets by a corresponding amount.
55
<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. comprising, respectively, the All America, Bond and
Money Market Funds as of December 31, 1999, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended and the financial highlights for
each of the four years in the period then ended. We have also audited the
statement of assets and liabilities, including the portfolio of investments in
securities, of Mutual of America Institutional Funds, Inc. comprising the Equity
Index Fund as of December 31, 1999 and the related statement of operations,
statement of changes in net assets and the financial highlights for the period
May 3, 1999 (commencement of operations) to December 31, 1999. 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 and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1999 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, 1999, the results of their operations for the year then
ended, the changes in their net assets for each of the two years in the period
then ended and their financial highlights for each of the four years in the
period then ended in conformity with generally accepted accounting principles.
Also, in our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of the
Equity Index Fund of Mutual of America Institutional Funds, Inc. as of December
31, 1999, and the results of its operations, changes in net assets and its
financial highlights for the period May 3, 1999 (commencement of operations) to
December 31, 1999 in conformity with generally accepted accounting principles.
/s/ Arthur Andersen LLP
-----------------------
New York, New York
February 21, 2000
56
<PAGE>
--------------------------------------------------------------------------------
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
320 PARK AVENUE, NEW YORK, NEW YORK 10022
--------------------------------------------------------------------------------
Dear Shareholder:
We are pleased to present the Mutual of America Institutional Funds'
results for the six-month period ending June 30, 2000. These funds are designed
primarily as investment vehicles for endowments, foundations and other
institutional investors.
The U.S. economy remains fundamentally strong at mid year, although
indications that it may be slowing have appeared. The Federal Reserve has raised
rates by a total of 1.75% in a little over a year, but should the economy indeed
lose steam, the central bankers may defer further rate increases for the near
term as the risk of inflation wanes. The combination of a more relaxed economy
and slowing job growth has produced Treasury yields that are lower than at any
time since December.
There was substantial volatility in the stock market during the first half
of this year. In the second quarter the S&P 500 Index, the NASDAQ and the
Russell 2000 declined. Second quarter earnings, however, should reflect the
underlying strength in the U.S. and global economies.
Total Returns-Six Months to June 30, 2000
The total return performance of each Fund for the six months ended June
30, 2000 was as follows:
All America Fund .......................................... +4.7%
Equity Index Fund ......................................... -0.5%
Bond Fund ................................................. +2.4%
MoneyMarket Fund .......................................... +2.9%
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:
o Historical total return achieved over specified periods, expressed as an
annual average rate and as a cumulative rate;
o Equivalent in dollars of a $10,000 hypothetical investment at the
beginning of each specified period; and
o Historical performance compared with an appropriate index.
The portfolios of each Fund and financial statements are presented in the
pages which then follow.
Thank you for your continued investment in our Funds.
Sincerely,
/s/ Dolores Morrissey
-----------------------
Dolores Morrissey
Chairman of the Board and President,
Mutual of America Institutional Funds, Inc.
57
<PAGE>
ALL AMERICA FUND
The All America Fund's investment objective is to outperform the Standard
& Poor's 500 Index. The Fund is approximately 60% invested in the 500 stocks
that comprise the S&P 500, while the remaining 40% of the Fund is actively
managed. The actively managed portion of the Fund utilizes four different
investment approaches -- large cap growth, small cap growth, large cap value and
small cap value -- with each approach managing approximately equal portions of
the actively managed portion. Beginning in early 2000, approximately half of the
actively managed assets were managed by two subadvisors, with Mutual of America
Capital Management Corporation managing the remainder. Previously, three
subadvisors were retained to manage approximately three quarters of these active
assets. The Fund's return for the twelve month period ended June 30, 2000 was
17.3%, well in excess of the 7.2% return of its benchmark index, the S&P 500.
The Fund's twelve month performance reflected investors' continued quest for
growth opportunities -- both the large and small cap growth portions
significantly outperformed the value segments. Nevertheless, the small cap value
segment performed strongly. Only the large cap value portion turned in negative
performance.
[The following table depicts a line graph that appears in the document.]
ALL AMERICA
FUND S&P 500
---------------------------------------------------------
SEMI SINCE SINCE
ANNUAL INCEPTION INCEPTION
---------------------------------------------------------
05/96 10,000 10,000
06/96 10,103 10,301
06/97 12,883 13,875
06/98 15,882 18,060
06/99 18,940 22,168
06/00 22,225 23,773
----------------------------------------------------
All America Fund
----------------
Total Return
------------
Period Growth
Ended of Cumu- Annual
6/30/00 $10,000 lative Average
---------------------------------------------------
1 Year $11,734 17.3% 17.3%
Since 5/1/96
(Inception) $22,225 122.2% 21.2%
----------------------------------------------------
----------------------------------------------------
S&P 500 Index
------------
Total Return
------------
Period Growth
Ended of Cumu- Annual
6/30/00 $10,000 lative Average
----------------------------------------------------
1 Year $10,724 7.2% 7.2%
Since 5/1/96
(Inception) $23,773 137.7% 23.1%
----------------------------------------------------
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.
58
<PAGE>
EQUITY INDEX FUND
The Equity Index Fund invests in the 500 stocks which comprise the S&P 500
Index. The S&P Index is a market-value weighted index of 500 domestic stocks
that are traded on the New York Stock Exchange, American Stock Exchange and
NASDAQ National Market System. The weightings make each company's influence on
the Index's performance directly proportional to that company's market value.
The companies included in the Index tend to be industry leaders. The Fund's
performance for the twelve months ended June 30, 2000 was 6.8%, substantially in
line with the benchmark's return of 7.2%. Technology has continued to be the
dominant theme, with defensive sectors such as utilities doing much better in
the past few months. Price-earnings and price-to-book multiples have come under
some pressure, reflecting the Federal Reserve's attempts to slow the economy
through higher interest rates.
[The following table depicts a line graph that appears in the document.]
EQUITY INDEX
FUND S&P 500
---------------------------------------------------------
SEMI SINCE SINCE
ANNUAL INCEPTION INCEPTION
---------------------------------------------------------
05/99 10,000 10,000
06/99 10,145 10,306
06/00 10,839 11,052
----------------------------------------------------
Equity Index Fund
-----------------
Total Return
------------
Period Growth
Ended of Cumu- Annual
6/30/00 $10,000 lative Average
---------------------------------------------------
1 Year $10,684 6.8% 6.8%
Since 5/3/99
(Inception) $10,839 8.4% 7.2%
----------------------------------------------------
----------------------------------------------------
S&P 500 Index
-------------
Total Return
------------
Period Growth
Ended of Cumu- Annual
6/30/00 $10,000 lative Average
----------------------------------------------------
1 Year $10,724 7.2% 7.2%
Since 5/3/99
(Inception) $11,052 10.5% 9.0%
----------------------------------------------------
The line representing the performance return of the Equity Index Fund includes
expenses, such as transaction costs, management fees and expenses, that reduce
returns, while the performance return line of the index does not.
59
<PAGE>
MONEY MARKET FUND
The Money Market Fund's investment objective is the realization of 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 Fund returned 5.5% for
the year ended 6/30/00. Short-term rates rose substantially during this period,
as the Federal Reserve Board raised the Federal Funds rate in an attempt to
quell prospective inflation. The seven-day effective yield as of August 1, 2000
is 6.5%. As with all performance reporting, this yield is not necessarily
indicative of future annual yields.
BOND FUND
The Bond Fund seeks a high level of return consistent with the
preservation of capital through investments in publicly traded debt securities.
The Fund primarily invests in corporate and U.S. Government agency securities,
which yield more than U.S. Treasury issues. The Fund's benchmark, the Lehman
Brothers Government/Corporate Index, which was invested over 50% in U.S.
Government issues, returned 4.3% over the past year. The Fund's overemphasis on
high yielding, lower quality, but primarily investment grade, longer corporate
bonds caused it to underperform this Index over the past twelve months.
[The following table depicts a line graph that appears in the document.]
BOND FUND S&P 500
---------------------------------------------------------
SEMI SINCE SINCE
ANNUAL INCEPTION INCEPTION
---------------------------------------------------------
05/96 10,000 10,000
06/96 10,074 10,116
06/97 10,748 10,900
06/98 11,884 12,129
06/99 12,116 12,457
06/00 12,234 12,991
----------------------------------------------------
Bond Fund
-----------
Total Return
------------
Period Growth
Ended of Cumu- Annual
6/30/00 $10,000 lative Average
---------------------------------------------------
1 Year $10,097 1.0% 1.0%
Since 5/1/96
(Inception) $12,234 22.3% 5.0%
----------------------------------------------------
----------------------------------------------------
Lehman Brothers Gov't./Corp. Bond Index
------------------------------------------
Total Return
------------
Period Growth
Ended of Cumu- Annual
6/30/00 $10,000 lative Average
---------------------------------------------------
1 Year $10,429 4.3% 4.3%
Since 5/1/96
(Inception) $12,991 29.9% 6.5%
----------------------------------------------------
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.
60
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
June 30, 2000 (Unaudited)
Shares Value
------- --------
INDEXED ASSETS:
COMMON STOCKS
3Com Corp. ........................................ 1,099 $ 63,330
Abbott Laboratories ............................... 4,879 217,420
Adaptec, Inc. ..................................... 322 7,326
ADC Telecommunications, Inc. ...................... 1,067 89,495
Adobe Systems, Inc. ............................... 383 49,790
Advanced Micro Devices, Inc. ...................... 484 37,389
AES Corp. ......................................... 1,348 61,503
Aetna, Inc. ....................................... 446 28,628
Aflac, Inc. ....................................... 844 38,771
Agilent Technologies, Inc. ........................ 1,432 105,610
Air Products & Chemicals, Inc. .................... 729 22,462
Alberto-Culver Co. ................................ 178 5,440
Albertson's, Inc. ................................. 1,345 44,721
Alcan Aluminum Ltd. ............................... 696 21,576
ALCOA, Inc. ....................................... 2,746 79,634
Allegheny Technologies, Inc. ...................... 298 5,364
Allergan, Inc. .................................... 417 31,067
Allied Waste Industries, Inc. ..................... 599 5,990
Allstate Corp. .................................... 2,355 52,399
Alltel Corp. ...................................... 997 61,752
Altera Corp. ...................................... 630 64,221
Alza Corp. ........................................ 325 19,216
Amerada Hess Corp. ................................ 289 17,846
Ameren Corp. ...................................... 435 14,681
America Online, Inc. .............................. 7,266 383,282
American Electric Power, Inc. ..................... 1,022 30,277
American Express Co. .............................. 4,225 220,228
American General Corp. ............................ 784 47,824
American Greetings Corp. Cl A ..................... 206 3,914
American Home Products Corp. ...................... 4,125 242,344
American Int'l. Group, Inc. ....................... 4,875 572,813
American Power Conversion ......................... 600 24,488
Amgen, Inc. ....................................... 3,242 227,751
AMR Corp. ......................................... 471 12,452
Amsouth Bancorporation ............................ 1,242 19,562
Anadarko Petroleum Corp. .......................... 406 20,021
Analog Devices, Inc. .............................. 1,119 85,044
Andrew Corp. ...................................... 263 8,827
Anheuser-Busch Cos., Inc. ......................... 1,429 106,728
Aon Corp. ......................................... 815 25,316
Apache Corp. ...................................... 362 21,290
Apple Computer, Inc. .............................. 1,020 53,423
Applied Materials, Inc. ........................... 2,554 231,456
Archer-Daniels-Midland Co. ........................ 1,932 18,958
Armstrong Holdings, Inc. .......................... 127 1,945
Ashland, Inc. ..................................... 231 8,099
Associates First Capital Corp. .................... 2,311 51,564
AT&T Corp. ........................................ 11,875 375,545
Autodesk, Inc. .................................... 193 6,695
Automatic Data Processing, Inc. ................... 1,976 105,840
AutoZone, Inc. .................................... 423 9,306
Avery Dennison Corp. .............................. 357 23,964
Avon Products, Inc. ............................... 770 34,265
Baker Hughes, Inc. ................................ 1,046 33,472
Ball Corp. ........................................ 97 3,122
Bank of America Corp. ............................. 5,241 225,363
Bank of New York Co., Inc. ........................ 2,337 108,671
Bank One Corp. .................................... 3,640 96,688
Bard (C.R.), Inc. ................................. 162 7,796
Barrick Gold Corp. ................................ 1,251 22,753
Bausch & Lomb, Inc. ............................... 168 12,999
Baxter International, Inc. ........................ 924 64,969
BB & T Corp. ...................................... 1,103 26,334
Bear Stearns Cos., Inc. ........................... 350 14,569
Becton Dickinson & Co. ............................ 793 22,749
Bed Bath & Beyond, Inc. ........................... 444 16,095
BellSouth Corp. ................................... 5,950 253,619
Bemis Co. ......................................... 166 5,582
Best Buy Co., Inc. ................................ 653 41,302
Bestfoods ......................................... 868 60,109
Bethlehem Steel Corp. ............................. 417 1,486
Biogen, Inc. ...................................... 477 30,767
Biomet, Inc. ...................................... 359 13,799
Black & Decker Corp. .............................. 276 10,850
Block (H. & R.), Inc. ............................. 310 10,036
BMC Software, Inc. ................................ 767 27,984
Boeing Co. ........................................ 2,869 119,960
Boise Cascade Corp. ............................... 182 4,709
Boston Scientific Corp. ........................... 1,316 28,870
Briggs & Stratton Corp. ........................... 74 2,535
Bristol-Myers Squibb Co. .......................... 6,238 363,364
Broadcom Corp. Cl A ............................... 650 142,309
Brown-Forman Corp. Cl B ........................... 217 11,664
Brunswick Corp. ................................... 292 4,836
Burlington Northern Santa Fe ...................... 1,354 31,057
Burlington Resources, Inc. ........................ 690 26,393
Cabletron Systems, Inc. ........................... 570 14,393
Campbell Soup Co. ................................. 1,360 39,610
Capital One Financial Corp. ....................... 627 27,980
Cardinal Health, Inc. ............................. 871 64,454
Carnival Corp. .................................... 1,912 37,284
Caterpillar, Inc. ................................. 1,129 38,245
Cendant Corp. ..................................... 2,263 31,682
Centex Corp. ...................................... 188 4,418
CenturyTel, Inc. .................................. 443 12,736
Ceridian Corp. .................................... 460 11,069
Charles Schwab Corp. .............................. 4,306 144,789
Charter One Financial, Inc. ....................... 663 15,249
Chase Manhattan Corp. ............................. 3,926 180,818
Chevron Corp. ..................................... 2,062 174,883
Chubb Corp. ....................................... 559 34,379
CIGNA Corp. ....................................... 515 48,153
Cincinnati Financial Corp. ........................ 521 16,379
CINergy Corp. ..................................... 505 12,846
Circuit City Group, Inc. .......................... 645 21,406
Cisco Systems, Inc. ............................... 21,999 1,398,311
Citigroup, Inc. ................................... 10,673 643,048
Citrix Systems, Inc. .............................. 570 10,794
Clear Channel Communications ...................... 1,074 80,550
Clorox Co. ........................................ 750 33,609
CMS Energy Corp. .................................. 368 8,142
Coastal Corp. ..................................... 679 41,334
Coca-Cola Co. ..................................... 7,838 450,195
Coca-Cola Enterprises, Inc. ....................... 1,350 22,022
Colgate-Palmolive Co. ............................. 1,824 109,212
Columbia Energy Group ............................. 259 16,997
Comcast Corp. Cl A ................................ 2,839 114,980
Comerica, Inc. .................................... 497 22,303
Compaq Computer Corp. ............................. 5,402 138,089
Computer Associates Intl., Inc. ................... 1,862 95,311
Computer Sciences Corp. ........................... 528 39,435
Compuware Corp. ................................... 1,132 11,745
Comverse Technology Inc. .......................... 484 45,012
Conagra, Inc. ..................................... 1,563 29,795
Conexant Systems, Inc. ............................ 687 33,405
Conoco, Inc. ...................................... 1,988 48,830
Conseco, Inc. ..................................... 1,039 10,130
Consolidated Edison, Inc. ......................... 670 19,849
Consolidated Stores Corp. ......................... 352 4,224
Constellation Energy Group ........................ 474 15,435
The accompanying notes are an integral part of these financial statements.
61
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
June 30, 2000 (Unaudited)
Shares Value
------- ---------
INDEXED ASSETS (CONTINUED):
COMMON STOCKS (CONTINUED)
Convergys Corp. ......................................... 500 $ 25,938
Cooper Industries, Inc. ................................. 300 9,769
Cooper Tire & Rubber Co. ................................ 242 2,692
Coors (Adolph) Co. Cl B ................................. 118 7,139
Corning, Inc. ........................................... 872 235,331
Costco Wholesale Corp. .................................. 1,407 46,431
Countrywide Credit Industries ........................... 359 10,882
CP&L Energy, Inc. (Holding Co) .......................... 508 16,224
Crane Co. ............................................... 209 5,081
Crown Cork & Seal, Inc. ................................. 411 6,165
CSX Corp. ............................................... 693 14,683
Cummins Engine Co., Inc. ................................ 132 3,597
CVS Corp. ............................................... 1,244 49,760
Dana Corp. .............................................. 523 11,081
Danaher Corp. ........................................... 452 22,346
Darden Restaurants, Inc. ................................ 422 6,858
Deere & Co. ............................................. 741 27,417
Dell Computer Corp. ..................................... 8,129 400,861
Delphi Automotive Systems Corp. ......................... 1,793 26,111
Delta Air Lines, Inc. ................................... 387 19,568
Deluxe Corp. ............................................ 232 5,467
Dillard's Inc. Cl A ..................................... 345 4,226
Disney (Walt) Co. ....................................... 6,571 255,037
Dollar General Corp. .................................... 1,057 20,612
Dominion Resources, Inc. ................................ 753 32,285
Donnelley (R.R.) & Sons Co. ............................. 401 9,048
Dover Corp. ............................................. 646 26,203
Dow Chemical Co. ........................................ 2,139 64,571
Dow Jones & Co., Inc. ................................... 284 20,803
DTE Energy Co. .......................................... 461 14,089
Du Pont (E.I.) de Nemours & Co .......................... 3,315 145,031
Duke Energy Corp. ....................................... 1,161 65,451
Dun & Bradstreet Corp. .................................. 511 14,627
Eastern Enterprises ..................................... 86 5,418
Eastman Chemical Co. .................................... 250 11,938
Eastman Kodak Co. ....................................... 980 58,310
Eaton Corp. ............................................. 234 15,678
Ecolab, Inc. ............................................ 412 16,094
Edison International .................................... 1,051 21,546
El Paso Energy Corp. .................................... 724 36,879
Electronic Data Systems Corp. ........................... 1,494 61,628
EMC Corp. ............................................... 6,862 527,945
Emerson Electric Co. .................................... 1,349 81,446
Engelhard Corp. ......................................... 399 6,808
Enron Corp. ............................................. 2,315 149,318
Entergy Corp. ........................................... 727 19,765
Equifax, Inc. ........................................... 449 11,786
Exxon Mobil Corp. ....................................... 11,009 864,207
Fannie Mae .............................................. 3,186 166,269
Federated Department Stores ............................. 666 22,478
FedEx Corp. ............................................. 917 34,846
Fifth Third Bancorp ..................................... 979 61,922
First Data Corp. ........................................ 1,304 64,711
First Union Corp. ....................................... 3,135 77,787
Firstar Corp. ........................................... 3,068 64,620
FirstEnergy Corp. ....................................... 739 17,274
FleetBoston Financial Corp. ............................. 2,850 96,900
Florida Progress Corp. .................................. 312 14,625
Fluor Corp. ............................................. 242 7,653
FMC Corp. ............................................... 97 5,626
Ford Motor Co. .......................................... 3,833 164,819
Fort James Corp. ........................................ 687 15,887
Fortune Brands, Inc. .................................... 520 11,993
FPL Group, Inc. ......................................... 570 28,215
Franklin Resources, Inc. ................................ 770 23,389
Freddie Mac ............................................. 2,207 89,384
Freeport-McMoran Copper Cl B ............................ 518 4,792
Gannett Co., Inc. ....................................... 843 50,422
Gap, Inc. ............................................... 2,691 84,094
Gateway, Inc. ........................................... 1,004 56,977
General Dynamics Corp. .................................. 638 33,336
General Electric Co. .................................... 31,288 1,658,264
General Mills, Inc. ..................................... 922 35,267
General Motors Corp. .................................... 1,692 98,242
Genuine Parts Co. ....................................... 565 11,300
Georgia-Pacific Group ................................... 544 14,280
Gillette Co. ............................................ 3,301 115,329
Global Crossing Ltd. .................................... 2,786 73,307
Golden West Financial Corp. ............................. 513 20,937
Goodrich (B.F.) Co. ..................................... 350 11,922
Goodyear Tire & Rubber Co. .............................. 497 9,940
GPU, Inc. ............................................... 392 10,609
Grainger (W.W.), Inc. ................................... 297 9,151
Great Atlantic & Pac. Tea, Inc. ......................... 123 2,045
Great Lakes Chemical Corp. .............................. 183 5,765
GTE Corp. ............................................... 3,045 189,551
Guidant Corp. ........................................... 976 48,312
Halliburton Co. ......................................... 1,402 66,157
Harcourt General, Inc. .................................. 226 12,289
Harley-Davidson, Inc. ................................... 962 37,037
Harrah's Entertainment, Inc. ............................ 408 8,543
Hartford Financial Svs Gp, Inc. ......................... 680 38,038
Hasbro, Inc. ............................................ 544 8,194
HCA - The Healthcare Company ............................ 1,788 54,311
HealthSouth Corp. ....................................... 1,226 8,812
Heinz (H.J.) Co. ........................................ 1,114 48,738
Hercules, Inc. .......................................... 338 4,753
Hershey Food Corp. ...................................... 440 21,340
Hewlett-Packard Co. ..................................... 3,163 394,980
Hilton Hotels Corp. ..................................... 1,170 10,969
Home Depot, Inc. ........................................ 7,306 364,843
Homestake Mining Co. .................................... 826 5,679
Honeywell International, Inc. ........................... 2,513 84,657
Household International, Inc. ........................... 1,492 62,011
Humana, Inc. ............................................ 532 2,594
Huntington Bancshares, Inc. ............................. 730 11,543
Illinois Tool Works, Inc. ............................... 955 54,435
IMS Health, Inc. ........................................ 978 17,604
Inco Ltd. ............................................... 609 9,363
Ingersoll Rand Co. ...................................... 520 20,930
Intel Corp. ............................................. 10,591 1,415,884
International Paper Co. ................................. 1,529 45,583
Interpublic Group of Cos., Inc. ......................... 954 41,022
Intl. Business Machines Corp. ........................... 5,607 614,317
Intl. Flavors & Fragrances .............................. 334 10,083
ITT Industries, Inc. .................................... 279 8,475
Jefferson-Pilot Corp. ................................... 333 18,794
Johnson & Johnson ....................................... 4,399 448,148
Johnson Controls, Inc. .................................. 271 13,906
Kansas City Southern Inds ............................... 351 31,129
Kaufman & Broad Home Corp. .............................. 152 3,012
Kellogg Co. ............................................. 1,286 38,259
Kerr-McGee Corp. ........................................ 297 17,504
KeyCorp ................................................. 1,420 25,028
Kimberly Clark Corp. .................................... 1,757 100,808
KLA Tencor Corp. ........................................ 588 34,435
Kmart Corp. ............................................. 1,576 10,737
Knight-Ridder, Inc. ..................................... 246 13,084
The accompanying notes are an integral part of these financial statements.
62
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
June 30, 2000 (Unaudited)
Shares Value
------- ----------
INDEXED ASSETS (CONTINUED):
COMMON STOCKS (CONTINUED)
Kohl's Corp. ............................................ 1,035 $ 57,572
Kroger Co. .............................................. 2,637 58,179
Legget & Platt .......................................... 623 10,280
Lehman Brothers Holdings, Inc. .......................... 381 36,028
Lexmark Int'l Inc. ...................................... 406 27,304
Lilly (Eli) & Co. ....................................... 3,572 356,754
Limited, Inc. ........................................... 1,364 29,497
Lincoln National Corp. .................................. 620 22,398
Linear Technology Corp. ................................. 982 62,787
Liz Claiborne, Inc. ..................................... 188 6,627
Lockheed Martin Corp. ................................... 1,257 31,189
Loews Corp. ............................................. 312 18,720
Longs Drug Stores Corp. ................................. 125 2,719
Louisiana-Pacific Corp. ................................. 339 3,687
Lowe's Companies, Inc. .................................. 1,213 49,809
LSI Logic Corp. ......................................... 971 52,555
Lucent Technologies ..................................... 10,298 610,157
Mallinckrodt, Inc. ...................................... 223 9,687
Manor Care, Inc. ........................................ 328 2,296
Marriott International, Inc. ............................ 758 27,335
Marsh & McLennan Cos., Inc. ............................. 848 88,563
Masco Corp. ............................................. 1,419 25,631
Mattel, Inc. ............................................ 1,336 17,619
Maxim Integrated Products, Inc. ......................... 898 61,008
May Department Stores Co. ............................... 1,063 25,512
Maytag Corp. ............................................ 268 9,883
MBIA, Inc. .............................................. 317 15,275
MBNA Corp. .............................................. 2,545 69,033
McDermott International, Inc. ........................... 189 1,666
McDonald's Corp. ........................................ 4,226 139,194
McGraw-Hill Cos., Inc. .................................. 622 33,588
McKesson HBOC, Inc. ..................................... 893 18,697
Mead Corp. .............................................. 326 8,232
Medimmune, Inc. ......................................... 660 48,840
Medtronic, Inc. ......................................... 3,794 188,989
Mellon Financial Corp. .................................. 1,553 56,587
Merck & Co., Inc. ....................................... 7,272 557,217
Mercury Interactive Corp. ............................... 240 23,220
Meredith Corp. .......................................... 165 5,569
Merrill Lynch & Co., Inc. ............................... 1,227 141,105
MGIC Investment Corp. ................................... 336 15,288
Micron Technology, Inc. ................................. 1,755 154,550
Microsoft Corp. ......................................... 16,642 1,331,319
Millipore Corp. ......................................... 144 10,854
Minnesota Mining & Mfg. Co. ............................. 1,252 103,290
Molex Inc., Cl A ........................................ 622 29,934
Morgan (J.P.) & Co., Inc. ............................... 513 56,494
Morgan Stanley Dean Witter .............................. 3,579 297,952
Motorola, Inc. .......................................... 6,806 197,799
Nabisco Group Holdings .................................. 1,035 26,845
National City Corp. ..................................... 1,957 33,391
National Semiconductor Corp. ............................ 544 30,872
National Service Industries ............................. 130 2,535
Navistar International Corp. ............................ 203 6,306
NCR Corp. ............................................... 307 11,954
Network Appliance, Inc. ................................. 963 77,522
New Century Energies, Inc. .............................. 367 11,010
New York Times Co. Cl A ................................. 544 21,488
Newell Rubbermaid, Inc. ................................. 843 21,707
Newmont Mining Corp. .................................... 532 11,505
Nextel Communications, Inc. ............................. 2,398 146,728
Niagara Mohawk Holdings, Inc. ........................... 608 8,474
Nicor, Inc. ............................................. 150 4,894
Nike, Inc. Cl B ......................................... 865 34,438
Nordstrom, Inc. ......................................... 445 10,736
Norfolk Southern Corp. .................................. 1,206 17,939
Nortel Networks Corp. Holding ........................... 9,368 639,366
Northern States Power Co. ............................... 492 9,932
Northern Trust Corp. .................................... 706 45,934
Northrop Grumman Corp. .................................. 221 14,641
Novell, Inc. ............................................ 1,066 9,861
Novellus Systems, Inc. .................................. 413 23,360
Nucor Corp. ............................................. 276 9,160
Occidental Petroleum Corp. .............................. 1,166 24,559
Office Depot, Inc. ...................................... 1,044 6,525
Old Kent Financial Corp. ................................ 435 11,628
Omnicom Group, Inc. ..................................... 563 50,142
Oneok, Inc. ............................................. 101 2,620
Oracle Corp. ............................................ 8,977 754,629
Owens Corning ........................................... 175 1,619
Owens-Illinois, Inc. .................................... 477 5,575
Paccar, Inc. ............................................ 250 9,922
Pactiv Corp. ............................................ 544 4,284
Paine Webber Group, Inc. ................................ 453 20,612
Pall Corp. .............................................. 396 7,326
Parametric Technology Corp. ............................. 847 9,317
Parker Hannifin Corp. ................................... 356 12,193
Paychex, Inc. ........................................... 1,173 49,266
PE Corp-PE Biosystems Group ............................. 656 43,214
Peco Energy Co. ......................................... 536 21,608
Penney (J.C.) Co., Inc. ................................. 826 15,229
Peoples Energy Corp. .................................... 113 3,658
Peoplesoft, Inc. ........................................ 852 14,271
PepsiCo, Inc. ........................................... 4,557 202,502
Perkin Elmer, Inc. ...................................... 145 9,588
Pfizer, Inc. ............................................ 19,907 955,536
PG & E Corp. ............................................ 1,219 30,018
Pharmacia Corp. ......................................... 4,014 207,474
Phelps Dodge Corp. ...................................... 258 9,595
Phillip Morris Cos., Inc. ............................... 7,232 192,100
Phillips Petroleum Co. .................................. 805 40,803
Pinnacle West Capital Corp. ............................. 269 9,112
Pitney Bowes, Inc. ...................................... 815 32,600
Placer Dome, Inc. ....................................... 1,034 9,888
PNC Financial Services Group ............................ 932 43,688
Polaroid Corp. .......................................... 141 2,547
Potlatch Corp. .......................................... 92 3,048
PPG Industries, Inc. .................................... 552 24,461
PPL Corporation ......................................... 457 10,025
Praxair, Inc. ........................................... 505 18,906
Price (T. Rowe) Associates .............................. 380 16,150
Proctor & Gamble Co. .................................... 4,136 236,786
Progressive Corp. of Ohio ............................... 233 17,242
Providian Financial Corp. ............................... 451 40,590
Public Svc. Enterprise Group ............................ 694 24,030
Pulte Corp. ............................................. 138 2,984
Quaker Oats Co. ......................................... 425 31,928
Qualcomm, Inc. .......................................... 2,332 139,920
Quintiles Transnational Corp. ........................... 365 5,156
Radioshack Corp. ........................................ 590 27,951
Ralston Purina Co. ...................................... 973 19,399
Raytheon Co. ............................................ 1,074 20,675
Reebok International Ltd. ............................... 178 2,837
Regions Financial Corp. ................................. 694 13,793
Reliant Energy, Inc. .................................... 939 27,759
Rite-Aid Corp. .......................................... 822 5,394
Rockwell Intl., Corp. ................................... 605 19,058
Rohm Haas Co. ........................................... 695 23,978
The accompanying notes are an integral part of these financial statements.
63
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
June 30, 2000 (Unaudited)
Shares Value
------- ----------
INDEXED ASSETS (CONTINUED):
COMMON STOCKS (CONTINUED)
Rowan Cos., Inc. ....................................... 292 $ 8,870
Royal Dutch Petroleum Co. N.Y .......................... 6,781 417,455
Russell Corp. .......................................... 105 2,100
Ryder System, Inc. ..................................... 211 3,996
Sabre Group Holdings, Inc. ............................. 410 11,685
Safeco Corp. ........................................... 413 8,208
Safeway, Inc. .......................................... 1,570 70,846
Sanmina Corp. .......................................... 470 40,185
Sapient Corp. .......................................... 180 19,249
Sara Lee Corp. ......................................... 2,750 53,109
SBC Communications, Inc. ............................... 10,758 465,284
Schering-Plough Corp. .................................. 4,630 233,815
Schlumberger, Ltd. ..................................... 1,800 134,325
Scientific-Atlanta, Inc. ............................... 499 37,176
Seagate Technology ..................................... 719 39,545
Seagram Co. Ltd. (The) ................................. 1,376 79,808
Sealed Air Corp. New ................................... 265 13,879
Sears Roebuck & Co. .................................... 1,115 36,377
Sempra Energy .......................................... 649 11,033
Sherwin-Williams Co. ................................... 526 11,145
Siebel Systems, Inc. ................................... 631 103,208
Sigma-Aldrich Corp. .................................... 270 7,898
SLM Holding Corp. ...................................... 505 18,906
Snap-On, Inc. .......................................... 186 4,952
Solectron Corp. ........................................ 1,886 78,976
Southern Co. ........................................... 2,051 47,814
Southtrust Corp. ....................................... 533 12,059
Southwest Airlines Co. ................................. 1,601 30,319
Springs Industries, Inc. Cl A .......................... 58 1,867
Sprint Corp. (FON Group) ............................... 2,766 141,066
Sprint Corp. (PCS Group) ............................... 2,894 172,193
St. Jude Medical, Inc. ................................. 268 12,295
St. Paul Companies, Inc. ............................... 671 22,898
Stanley Works .......................................... 284 6,745
Staples, Inc. .......................................... 1,532 23,555
Starbucks Corp. ........................................ 580 22,149
State Street Corp. ..................................... 508 53,880
Summit Bancorp ......................................... 555 13,667
Sun Microsystems, Inc. ................................. 5,017 456,233
Sunoco, Inc. ........................................... 286 8,419
Suntrust Banks, Inc. ................................... 956 43,677
Supervalu, Inc. ........................................ 443 8,445
Synovus Financial Corp. ................................ 888 15,651
Sysco Corp. ............................................ 1,045 44,021
Target Corp. ........................................... 1,442 83,636
Tektronix, Inc. ........................................ 149 11,026
Tellabs, Inc. .......................................... 1,295 88,627
Temple-Inland, Inc. .................................... 178 7,476
Tenet Healthcare Corp. ................................. 988 26,676
Teradyne, Inc. ......................................... 544 39,984
Texaco, Inc. ........................................... 1,756 93,507
Texas Instruments, Inc. ................................ 5,175 355,458
Textron, Inc. .......................................... 472 25,636
Thermo Electron Corp. .................................. 503 10,594
Thomas & Betts Corp. ................................... 185 3,538
Tiffany & Co. .......................................... 230 15,525
Time Warner, Inc. ...................................... 4,161 316,236
Timken Co. ............................................. 196 3,651
TJX Companies, Inc. .................................... 984 18,450
Torchmark Corp. ........................................ 417 10,295
Tosco Corp. ............................................ 456 12,911
Toys R Us, Inc. ........................................ 684 9,961
Transocean Sedco Forex, Inc. ........................... 656 35,055
Tribune Co. ............................................ 976 34,143
Tricon Global Restaurants Inc. ......................... 490 13,843
TRW, Inc. .............................................. 386 16,743
Tupperware Corp. ....................................... 183 4,026
TXU Corp. .............................................. 834 24,603
Tyco International Ltd. ................................ 5,356 253,741
U.S. Bancorp ........................................... 2,378 45,777
U.S. West, Inc. ........................................ 1,603 137,457
Unicom Corp. ........................................... 562 21,742
Unilever N.V ........................................... 1,814 78,002
Union Carbide Corp. .................................... 425 21,038
Union Pacific Corp. .................................... 789 29,341
Union Pacific Resources Group .......................... 801 17,622
Union Planters Corp. ................................... 448 12,516
Unisys Corp. ........................................... 983 14,315
United Technologies Corp. .............................. 1,488 87,606
UnitedHealth Group Inc. ................................ 514 44,076
Unocal Corp. ........................................... 770 25,506
UNUMProvident Corp. .................................... 762 15,288
US Airways Group Inc. .................................. 227 8,853
UST, Inc. .............................................. 544 7,990
USX-Marathon Group ..................................... 986 24,712
USX-U.S. Steel Group ................................... 281 5,216
V F Corp. .............................................. 375 8,930
Veritas Software Corp. ................................. 1,236 139,687
Verizon Communications ................................. 4,888 248,371
Viacom, Inc. Cl B ...................................... 4,836 329,755
Visteon Corp. .......................................... 412 4,994
Vulcan Materials Co. ................................... 318 13,575
W.R. Grace & Co. ....................................... 229 2,777
Wachovia Corp. ......................................... 643 34,883
Walgreen Co. ........................................... 3,180 102,356
Wal-Mart Stores, Inc. .................................. 14,095 812,224
Washington Mutual, Inc. ................................ 1,732 50,012
Waste Management, Inc. ................................. 1,967 37,373
Watson Pharmaceuticals, Inc. ........................... 305 16,394
Wellpoint Health Networks Inc. ......................... 203 14,705
Wells Fargo & Company .................................. 5,095 197,431
Wendy's International, Inc. ............................ 380 6,769
Westvaco Corp. ......................................... 318 7,890
Weyerhaeuser Co. ....................................... 745 32,035
Whirlpool Corp. ........................................ 237 11,050
Willamette Industries, Inc. ............................ 355 9,674
Williams Cos., Inc. .................................... 1,380 57,529
Winn-Dixie Stores, Inc. ................................ 475 6,798
WorldCom Inc. .......................................... 9,054 415,352
Worthington Industries, Inc. ........................... 284 2,982
Wrigley (Wm.) Jr. Co. .................................. 368 29,509
Xerox Corp. ............................................ 2,108 43,741
Xilinx, Inc. ........................................... 1,009 83,306
Yahoo!, Inc. ........................................... 1,718 212,817
Young & Rubicam, Inc. .................................. 222 12,696
----------
TOTAL INDEXED ASSETS--COMMON STOCKS
(Cost: $29,104,973) 57.5% .................................. 39,695,411
==========
The accompanying notes are an integral part of these financial statements.
64
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
June 30, 2000 (Unaudited) Face
Rate Maturity Amount Value
-------- --------- -------- ---------
INDEXED ASSETS (CONTINUED):
U. S. GOVERNMENT (0.1%)
U.S. Treasury Bill (a) ........... 5.54% 07/27/00 $ 50,000 $ 49,798
-----------
COMMERCIAL PAPER (1.2%)
SBC Communications, Inc. ......... 6.83 07/03/00 815,000 814,691
-----------
TOTAL SHORT-TERM DEBT SECURITIES
(Cost: $864,489) 1.3% .......................................... 864,489
-----------
TOTAL INDEXED ASSETS
(Cost: $29,969,462) 58.8% ...................................... $40,559,900
===========
---------------
FUTURES CONTRACTS OUTSTANDING AS OF JUNE 30, 2000:
<TABLE>
<CAPTION>
Expiration Underlying Face Unrealized
Date Amount at Value Gain
----------- --------------- ----------
<S> <C> <C> <C>
PURCHASED
2 S&P 500 Stock Index Futures Contracts .......... September 2000 $734,050 $1,200
========= ======
</TABLE>
Face value of futures purchased and outstanding as a percentage of total
investments in securities: 1.1%.
-------------
(a) This security, or a portion thereof, has been segregated to cover initial
margin requirements on open futures contracts.
The accompanying notes are an integral part of these financial statements.
65
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
June 30, 2000 (Unaudited)
Shares Value
------- ----------
ACTIVE ASSETS:
COMMON STOCKS
BASIC MATERIALS (0.4%)
Alcan Aluminum Ltd. ............................. 1,840 $ 57,040
Millenium Chemical, Inc. ........................ 4,240 72,080
Eastman Chemical Co. ............................ 1,620 77,355
Newmont Mining Corp. ............................ 2,850 61,631
----------
268,106
----------
CONSUMER, CYCLICAL (3.1%)
AT&T Corp - Liberty Media-`A'* .................. 4,190 101,608
Bed Bath & Beyond, Inc.* ........................ 1,300 47,125
BJ Services Co.* ................................ 1,500 93,750
BJ's Wholesale Club, Inc.* ...................... 2,950 97,350
CNET Networks, Inc.* ............................ 4,000 98,250
Cox Radio, Inc.* ................................ 3,300 92,400
CVS Corp. ....................................... 5,330 213,200
Disney (Walt) Co. ............................... 5,450 211,528
Harrah's Entertainment, Inc.* ................... 4,060 85,006
Gallagher (Arthur J.) & Co. ..................... 4,420 185,640
Marriott International, Inc. .................... 2,340 84,386
Michaels Stores, Inc.* .......................... 1,500 68,719
New York Times Co. Cl A ......................... 1,550 61,225
Outback Steakhouse, Inc.* ....................... 2,500 73,125
Radio One, Inc. Cl D* ........................... 2,160 47,655
Reebok International Ltd.* ...................... 5,930 94,509
Trex, Inc.* ..................................... 3,700 185,000
Viacom, Inc. Cl B* .............................. 3,070 209,336
Young & Rubicam, Inc. ........................... 1,800 102,938
----------
2,152,750
----------
CONSUMER, NON-CYCLICAL (0.9%)
Alberto-Culver Co. .............................. 2,890 88,326
Anheuser-Busch Cos., Inc. ....................... 1,090 81,409
Hershey Food Corp. .............................. 1,710 82,935
Kroger Co.* ..................................... 7,840 172,970
Safeway, Inc.* .................................. 4,210 189,976
----------
615,616
----------
ENERGY (3.9%)
Anadarko Petroleum Corp. ........................ 230 11,342
Core Laboratories N.V.* ......................... 4,950 143,550
Devon Energy Corp. .............................. 230 12,923
Enron Corp. ..................................... 200 12,900
Grey Wolf Inc.* ................................. 15,650 78,250
Kerr-McGee Corp. ................................ 2,590 152,648
Kinder Morgan, Inc. ............................. 7,360 254,380
Lyondell Petrochemical Co. ...................... 4,560 76,380
Midcoast Energy Res., Inc. ...................... 3,050 48,038
Murphy Oil Corp. ................................ 3,080 183,068
NewField Exploration Company* ................... 3,840 150,240
Occidental Petroleum Corp. ...................... 6,530 137,538
Ocean Energy, Inc.* ............................. 20,060 284,601
Precision Drilling Corp.* ....................... 4,330 167,246
Pride International, Inc.* ...................... 5,115 126,596
Quanta Services, Inc.* .......................... 1,675 92,125
R & B Falcon Corp.* ............................. 6,180 145,616
Rowan Cos., Inc.* ............................... 7,540 229,028
Schlumberger, Ltd. .............................. 1,380 102,983
Stone Energy Corp.* ............................. 3,410 203,748
Transocean Sedco Forex, Inc. .................... 1,550 82,828
----------
2,696,028
----------
FINANCIAL (6.0%)
Ace, Ltd. ....................................... 6,060 169,680
American Express Co. ............................ 1,900 99,038
American Int'l. Group, Inc. ..................... 2,200 258,500
Apartment Investment & Mgmt. Co. ................ 2,280 98,610
Arden Realty Group .............................. 3,250 76,375
Bank of America Corp. ........................... 2,100 90,300
Bank of New York Co., Inc. ...................... 4,390 204,135
Boston Properties ............................... 4,330 167,246
Chubb Corp. ..................................... 1,220 75,030
Citigroup, Inc. ................................. 11,900 716,975
Equity Res. Pptys. Tr. Co. ...................... 3,380 155,480
FleetBoston Financial Corp. ..................... 5,410 183,940
HCC Insurance Holdings, Inc. .................... 5,020 94,753
Hilb, Rogal & Hamilton Co. ...................... 4,790 166,153
Home Properties Inc. ............................ 3,470 104,100
Kimco Realty Corp. .............................. 3,830 157,030
Marsh & McLennan Cos., Inc. ..................... 2,040 213,053
Mellon Financial Corp. .......................... 3,480 126,803
Morgan Stanley Dean Witter ...................... 2,900 241,425
Mutual Risk Management Ltd. ..................... 9,280 160,660
SL Green Realty Corp. ........................... 5,960 159,430
Spieker Properties, Inc. ........................ 3,280 154,980
St. Paul Companies, Inc. ........................ 2,340 79,853
Vornado Realty Trust ............................ 2,210 76,798
XL Capital Limited .............................. 2,890 156,421
----------
4,186,768
----------
HEALTHCARE (4.0%)
Alza Corp.* ..................................... 2,800 165,550
Bristol-Myers Squibb Co. ........................ 1,680 97,860
Celgene Corp.* .................................. 2,300 135,413
Forest Laboratories, Inc.* ...................... 3,000 303,000
HCA - The Healthcare Company .................... 6,680 202,905
IDEC Pharmaceuticals Corp.* ..................... 700 82,119
King Pharmaceuticals Inc.* ...................... 5,100 223,763
Lifepoint Hospitals Inc.* ....................... 6,800 151,300
Lilly (Eli) & Co. ............................... 1,100 109,863
Minimed, Inc.* .................................. 2,000 236,000
Oxford Health Plans, Inc.* ...................... 16,010 381,238
Pharmacia Corp. ................................. 2,180 112,679
Province Healthcare Co.* ........................ 4,510 162,924
Sepracor, Inc.* ................................. 1,800 217,125
Triad Hospitals, Inc.* ............................. 6,060 146,576
----------
2,728,315
----------
INDUSTRIAL (4.3%)
AES Corp.* ...................................... 2,970 135,506
Aspect Communications Inc.* ..................... 2,000 78,625
Asyst Technologies, Inc.* ....................... 2,060 70,555
BISYS Group, Inc.* .............................. 2,900 178,350
Boeing Co. ...................................... 2,090 87,388
CommScope, Inc.* ................................ 1,900 77,900
Convergys Corp.* ................................ 1,870 97,006
CSG Systems Intl., Inc.* ........................ 1,755 98,390
Documentum, Inc.* ............................... 2,220 198,413
Dycom Industries, Inc.* ......................... 2,040 93,840
FactSet Research Systems, Inc. .................. 3,400 96,050
Fiserv, Inc.* ................................... 1,300 56,225
Forward Air Corporation* ........................ 6,800 272,000
Grant Prideco, Inc.* ............................ 2,230 55,750
Hooper Holmes, Inc. ............................. 8,320 66,560
HS Resources, Inc.* ............................. 4,110 123,300
Kent Electronics Corp.* ......................... 3,660 109,114
KLA Tencor Corp.* ............................... 1,050 61,491
Lam Research Corp.* ............................. 1,800 67,500
Lockheed Martin Corp. ........................... 2,610 64,761
Mettler-Toledo International* ................... 1,900 76,000
The accompanying notes are an integral part of these financial statements.
66
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
June 30, 2000 (Unaudited)
Shares Value
------- -----------
ACTIVE ASSETS (CONTINUED):
TECHNOLOGY (CONTINUED)
Olin Corp. ...................................... 5,090 $ 83,985
PRI Automation, Inc.* ........................... 2,700 176,555
SDL, Inc.* ...................................... 700 199,631
Spartech Corp. .................................. 3,180 85,860
Varco International, Inc.* ...................... 8,775 204,019
Wellman, Inc. ................................... 5,090 82,394
-----------
2,997,168
-----------
TECHNOLOGY (14.8%)
Analog Devices, Inc.* ........................... 1,390 105,640
ANTEC Corp.* .................................... 2,200 91,438
Applied Materials, Inc.* ........................ 7,400 670,625
Atmel Corp.* .................................... 8,800 324,500
ATMI, Inc.* ..................................... 2,300 106,950
Aware, Inc.* .................................... 1,100 56,238
Business Objects S.A.-Sp ADR* ................... 2,300 202,688
Ciena Corp.* .................................... 3,200 533,400
Cisco Systems, Inc.* ............................ 27,600 1,754,325
Compaq Computer Corp. ........................... 1,830 46,779
Comverse Technology Inc.* ....................... 1,310 121,830
Critical Path, Inc.* ............................ 2,300 134,119
Cytyc Corporation* .............................. 2,800 149,450
Dallas Semiconductor Corp. ...................... 2,000 81,500
Datastream Sys. Inc. ............................ 220 2,750
Efficient Networks, Inc.* ....................... 1,400 102,988
Entrust Technologies, Inc.* ..................... 2,600 215,150
E-Speed, Inc. Cl A* ............................. 1,800 78,188
Getty Images, Inc.* ............................. 2,800 103,775
Intel Corp. ..................................... 6,630 886,348
Intuit, Inc.* ................................... 900 37,238
ISS Group, Inc. ................................. 1,200 118,481
JDA Software Group, Inc.* ....................... 5,090 97,664
JDS Uniphase Corp.* ............................. 3,600 431,550
Kana Communications, Inc.* ...................... 1,300 80,438
Lattice Semiconductor Corp.* .................... 1,700 117,513
Liberare Technologies* .......................... 1,200 35,175
Linear Technology Corp. ......................... 8,000 511,500
Maxim Integrated Products, Inc.* ................ 7,400 502,738
Metasolv Software, Inc.* ........................ 1,200 52,800
Microchip Technology, Inc.* ..................... 3,600 209,756
Micromuse, Inc.* ................................ 600 99,291
Micron Technology, Inc.* ........................ 1,550 136,497
Microsoft Corp.* ................................ 1,300 103,986
Millipore Corp. ................................. 850 64,069
Networks Associates, Inc.* ...................... 8,870 180,726
Northrop Grumman Corp. .......................... 960 63,600
Perkin Elmer, Inc. .............................. 2,520 166,635
Phone.com, Inc.* ................................ 1,300 84,663
RealNetworks, Inc.* ............................. 1,800 91,013
Symbol Technologies, Inc. ....................... 1,200 64,800
Teletech Holdings, Inc.* ........................ 4,300 133,569
United Technologies Corp. ....................... 1,550 91,256
Varian Semiconductor Equip.* .................... 1,890 118,716
Veritas Software Corp.* ......................... 930 105,105
Vignette Corporation* ........................... 1,600 83,225
Vitria Technology, Inc.* ........................ 3,400 207,825
Waters Corp.* ................................... 850 106,091
Xilinx, Inc.* ................................... 3,900 321,994
-----------
10,186,595
-----------
TELECOMMUNICATIONS (1.6%)
AT&T Corp. ...................................... 2,710 85,704
Global Crossing Ltd.* ........................... 3,080 81,043
ITC DeltaCom, Inc.* ............................. 4,600 102,638
McLeod USA, Inc. Cl A* .......................... 4,700 97,231
NTL Incorporated* ............................... 1,910 114,361
Sprint Corp. (PCS Group) ........................ 2,510 128,010
TeleWest Communications -ADR* ................... 2,900 107,300
Time Warner Telecom, Inc Cl A* .................. 2,800 180,250
True North Communications Inc. ..................... 1,506 66,264
Western Wireless Corp. Cl A* .................... 2,500 136,250
-----------
1,099,051
-----------
UTILITIES (0.5%)
El Paso Energy Corp. ............................ 2,760 140,588
Montana Pwr. Co. ................................ 4,490 158,553
NSTAR ........................................... 1,490 60,624
-----------
359,765
-----------
TOTAL ACTIVE ASSETS--COMMON STOCKS
(Cost: $20,411,586) 39.5% ........................ 27,290,162
-----------
-------------
*Non-income producing security.
The accompanying notes are an integral part of these financial statements.
67
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (ALL AMERICA FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
------- -------- ---------- -----------
<S> <C> <C> <C> <C>
ACTIVE ASSETS (CONTINUED):
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER (1.7%)
Bank Austria Comml. Paper Inc. .......... 6.58% 07/14/00 $100,000 $ 99,762
BMW US Capital Corp. .................... 6.54 07/17/00 100,000 99,709
Ford Motor Credit Puerto Rico ........... 6.60 07/03/00 184,000 183,932
SBC Communications, Inc. ................ 6.83 07/03/00 765,000 764,710
-----------
TOTAL ACTIVE ASSETS SHORT-TERM DEBT SECURITIES
(Cost: $1,148,113) 1.7% ................................................. 1,148,113
-----------
TOTAL ACTIVE ASSETS
(Cost: $21,559,699) 41.2% ............................................... 28,438,275
-----------
TOTAL INVESTMENTS
(Cost: $51,529,161) 100.0% .............................................. $68,998,175
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
68
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
June 30, 2000 (Unaudited)
Shares Value
------- --------
INDEXED ASSETS:
COMMON STOCKS
3Com Corp ....................................... 968 $ 55,781
Abbott Laboratories ............................. 4,313 192,198
Adaptec, Inc. ................................... 287 6,529
ADC Telecommunications, Inc. .................... 945 79,262
Adobe Systems, Inc. ............................. 338 43,940
Advanced Micro Devices, Inc. .................... 428 33,063
AES Corp. ....................................... 1,192 54,385
Aetna, Inc. ..................................... 394 25,290
Aflac, Inc. ..................................... 747 34,315
Agilent Technologies, Inc. ...................... 1,258 92,778
Air Products & Chemicals, Inc. .................. 644 19,843
Alberto-Culver Co. .............................. 156 4,768
Albertson's, Inc. ............................... 1,189 39,534
Alcan Aluminum Ltd. ............................. 615 19,065
ALCOA, Inc. ..................................... 2,432 70,528
Allegheny Technologies, Inc. .................... 263 4,734
Allergan, Inc. .................................. 369 27,491
Allied Waste Industries, Inc. ................... 530 5,300
Allstate Corp. .................................. 2,083 46,347
Alltel Corp. .................................... 881 54,567
Altera Corp. .................................... 557 56,779
Alza Corp. ...................................... 287 16,969
Amerada Hess Corp. .............................. 254 15,685
Ameren Corp. .................................... 385 12,994
America Online, Inc. ............................ 6,425 338,919
American Electric Power, Inc. ................... 1,143 33,867
American Express Co. ............................ 3,736 194,739
American General Corp. .......................... 694 42,334
American Greetings Corp. Cl A ................... 181 3,439
American Home Products Corp. .................... 3,664 215,260
American Int'l. Group, Inc. ..................... 4,311 506,543
American Power Conversion ....................... 530 21,631
Amgen, Inc. ..................................... 2,866 201,337
AMR Corp. ....................................... 416 10,998
Amsouth Bancorporation .......................... 1,097 17,278
Anadarko Petroleum Corp. ........................ 357 17,605
Analog Devices, Inc. ............................ 979 74,404
Andrew Corp. .................................... 231 7,753
Anheuser-Busch Cos., Inc. ....................... 1,263 94,330
Aon Corp. ....................................... 720 22,365
Apache Corp. .................................... 320 18,820
Apple Computer, Inc. ............................ 904 47,347
Applied Materials, Inc. ......................... 2,259 204,722
Archer-Daniels-Midland Co. ...................... 1,707 16,750
Armstrong Holdings, Inc. ........................ 113 1,730
Ashland, Inc. ................................... 202 7,083
Associates First Capital Corp. .................. 2,044 45,607
AT&T Corp. ...................................... 10,527 332,921
Autodesk, Inc. .................................. 171 5,932
Automatic Data Processing, Inc. ................. 1,755 94,002
AutoZone, Inc. .................................. 405 8,910
Avery Dennison Corp. ............................ 316 21,212
Avon Products, Inc. ............................. 680 30,260
Baker Hughes, Inc. .............................. 923 29,536
Ball Corp ....................................... 84 2,704
Bank of America Corp. ........................... 4,635 199,305
Bank of New York Co., Inc. ...................... 2,066 96,069
Bank One Corp. .................................. 3,219 85,505
Bard (C.R.), Inc. ............................... 144 6,930
Barrick Gold Corp. .............................. 1,107 20,134
Bausch & Lomb, Inc. ............................. 161 12,457
Baxter International, Inc. ...................... 817 57,445
BB & T Corp. .................................... 975 23,278
Bear Stearns Cos., Inc. ......................... 309 12,862
Becton Dickinson & Co. .......................... 702 20,139
Bed Bath & Beyond, Inc. ......................... 392 14,210
BellSouth Corp. ................................. 5,283 225,188
Bemis Co. ....................................... 146 4,909
Best Buy Co., Inc. .............................. 576 36,432
Bestfoods ....................................... 768 53,184
Bethlehem Steel Corp. ........................... 369 1,315
Biogen, Inc. .................................... 422 27,219
Biomet, Inc. .................................... 316 12,146
Black & Decker Corp. ............................ 243 9,553
Block (H. & R.), Inc. ........................... 274 8,871
BMC Software, Inc. .............................. 680 24,809
Boeing Co. ...................................... 2,537 106,078
Boise Cascade Corp. ............................. 160 4,140
Boston Scientific Corp. ......................... 1,164 25,535
Briggs & Stratton Corp. ......................... 65 2,226
Bristol-Myers Squibb Co. ........................ 5,517 321,365
Broadcom Corp. - Cl A ........................... 575 125,889
Brown-Forman Corp. Cl B ......................... 192 10,320
Brunswick Corp. ................................. 258 4,273
Burlington Northern Santa Fe .................... 1,198 27,479
Burlington Resources, Inc. ...................... 611 23,371
Cabletron Systems, Inc. ......................... 506 12,777
Campbell Soup Co. ............................... 1,200 34,950
Capital One Financial Corp. ..................... 553 24,678
Cardinal Health, Inc. ........................... 770 56,980
Carnival Corp. .................................. 1,731 33,755
Caterpillar, Inc. ............................... 998 33,807
Cendant Corp. ................................... 1,995 27,930
Centex Corp. .................................... 166 3,901
CenturyTel, Inc. ................................ 392 11,270
Ceridian Corp. .................................. 406 9,769
Charles Schwab Corp. ............................ 3,808 128,044
Charter One Financial, Inc. ..................... 586 13,478
Chase Manhattan Corp. ........................... 3,471 159,883
Chevron Corp. ................................... 1,823 154,613
Chubb Corp. ..................................... 494 30,381
CIGNA Corp. ..................................... 455 42,543
Cincinnati Financial Corp. ...................... 460 14,461
CINergy Corp. ................................... 445 11,320
Circuit City Group, Inc. ........................ 571 18,950
Cisco Systems, Inc. ............................. 19,455 1,236,608
Citigroup, Inc. ................................. 9,438 568,640
Citrix Systems, Inc. ............................ 503 9,526
Clear Channel Communications .................... 949 71,175
Clorox Co. ...................................... 664 29,756
CMS Energy Corp. ................................ 325 7,191
Coastal Corp. ................................... 599 36,464
Coca-Cola Co. ................................... 6,932 398,157
Coca-Cola Enterprises, Inc. ..................... 1,194 19,477
Colgate-Palmolive Co. ........................... 1,613 96,578
Columbia Energy Group ........................... 228 14,963
Comcast Corp. Cl A .............................. 2,511 101,696
Comerica, Inc. .................................. 439 19,700
Compaq Computer Corp. ........................... 4,770 121,933
Computer Associates Intl., Inc .................. 1,648 84,357
Computer Sciences Corp. ......................... 467 34,879
Compuware Corp. ................................. 1,004 10,417
Comverse Technology Inc. ........................ 430 39,990
Conagra, Inc. ................................... 1,381 26,325
Conexant Systems, Inc. .......................... 608 29,564
Conoco, Inc. .................................... 1,757 43,156
The accompanying notes are an integral part of these financial statements.
69
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
June 30, 2000 (Unaudited)
Shares Value
------ ---------
INDEXED ASSETS (CONTINUED):
COMMON STOCKS (CONTINUED)
Conseco, Inc. ................................... 918 $ 8,951
Consolidated Edison, Inc. ....................... 620 18,368
Consolidated Stores Corp. ....................... 310 3,720
Constellation Energy Group ...................... 419 13,644
Convergys Corp. ................................. 440 22,825
Cooper Industries, Inc. ......................... 264 8,597
Cooper Tire & Rubber Co. ........................ 213 2,370
Coors (Adolph) Co. Cl B ......................... 103 6,232
Corning, Inc. ................................... 771 208,074
Costco Wholesale Corp. .......................... 1,245 41,085
Countrywide Credit Industries ................... 318 9,639
CP&L Energy, Inc. (Holding Co) .................. 448 14,308
Crane Co. ....................................... 185 4,498
Crown Cork & Seal, Inc. ......................... 364 5,460
CSX Corp. ....................................... 613 12,988
Cummins Engine Co., Inc. ........................ 117 3,188
CVS Corp. ....................................... 1,099 43,960
Dana Corp. ...................................... 462 9,789
Danaher Corp. ................................... 400 19,775
Darden Restaurants, Inc. ........................ 369 5,996
Deere & Co. ..................................... 655 24,235
Dell Computer Corp. ............................. 7,190 354,557
Delphi Automotive Systems Corp .................. 1,586 23,096
Delta Air Lines, Inc. ........................... 343 17,343
Deluxe Corp. .................................... 206 4,854
Dillard's Inc. Cl A ............................. 302 3,700
Disney (Walt) Co. ............................... 5,788 224,647
Dollar General Corp. ............................ 932 18,174
Dominion Resources, Inc. ........................ 685 29,369
Donnelley (R.R.) & Sons Co. ..................... 355 8,010
Dover Corp. ..................................... 571 23,161
Dow Chemical Co. ................................ 1,890 57,054
Dow Jones & Co., Inc. ........................... 251 18,386
DTE Energy Co. .................................. 407 12,439
Du Pont (E.I.) de Nemours & Co .................. 2,931 128,231
Duke Energy Corp. ............................... 1,026 57,841
Dun & Bradstreet Corp. .......................... 452 12,939
Eastern Enterprises ............................. 76 4,788
Eastman Chemical Co. ............................ 220 10,505
Eastman Kodak Co. ............................... 866 51,527
Eaton Corp. ..................................... 206 13,802
Ecolab, Inc. .................................... 364 14,219
Edison International ............................ 974 19,967
El Paso Energy Corp. ............................ 640 32,600
Electronic Data Systems Corp. ................... 1,322 54,533
EMC Corp. ....................................... 6,069 466,934
Emerson Electric Co. ............................ 1,193 72,027
Engelhard Corp. ................................. 354 6,040
Enron Corp. ..................................... 2,047 132,032
Entergy Corp. ................................... 643 17,482
Equifax, Inc. ................................... 397 10,421
Exxon Mobil Corp. ............................... 9,736 764,276
Fannie Mae ...................................... 2,817 147,012
Federated Department Stores ..................... 589 19,879
FedEx Corp. ..................................... 838 31,844
Fifth Third Bancorp ............................. 866 54,775
First Data Corp. ................................ 1,153 57,218
First Union Corp. ............................... 2,772 68,780
Firstar Corp. ................................... 2,751 57,943
FirstEnergy Corp. ............................... 654 15,287
FleetBoston Financial Corp. ..................... 2,520 85,680
Florida Progress Corp. .......................... 275 12,891
Fluor Corp. ..................................... 213 6,736
FMC Corp. ....................................... 86 4,988
Ford Motor Co. .................................. 3,389 145,727
Fort James Corp. ................................ 607 14,037
Fortune Brands, Inc. ............................ 460 10,609
FPL Group, Inc. ................................. 503 24,899
Franklin Resources, Inc. ........................ 707 21,475
Freddie Mac ..................................... 1,951 79,016
Freeport-McMoran Copper Cl B .................... 459 4,246
Gannett Co., Inc. ............................... 745 44,560
Gap, Inc. ....................................... 2,402 75,063
Gateway, Inc. ................................... 888 50,394
General Dynamics Corp. .......................... 563 29,417
General Electric Co. ............................ 27,670 1,466,510
General Mills, Inc. ............................. 815 31,174
General Motors Corp. ............................ 1,496 86,862
Genuine Parts Co. ............................... 499 9,980
Georgia-Pacific Group ........................... 480 12,600
Gillette Co. .................................... 2,920 102,018
Global Crossing Ltd. ............................ 2,472 65,045
Golden West Financial Corp. ..................... 453 18,488
Goodrich (B.F.) Co. ............................. 309 10,525
Goodyear Tire & Rubber Co. ...................... 439 8,780
GPU, Inc. ....................................... 346 9,364
Grainger (W.W.), Inc. ........................... 262 8,073
Great Atlantic & Pac. Tea, Inc .................. 108 1,796
Great Lakes Chemical Corp. ...................... 161 5,072
GTE Corp. ....................................... 2,693 167,639
Guidant Corp. ................................... 862 42,669
Halliburton Co. ................................. 1,240 58,513
Harcourt General, Inc. .......................... 200 10,875
Harley-Davidson, Inc. ........................... 848 32,648
Harrah's Entertainment, Inc. .................... 361 7,558
Hartford Financial Svs Gp, Inc. ................. 601 33,618
Hasbro, Inc. .................................... 481 7,245
HCA - The Healthcare Company .................... 1,581 48,023
HealthSouth Corp. ............................... 1,083 7,784
Heinz (H.J.) Co. ................................ 1,005 43,969
Hercules, Inc. .................................. 298 4,191
Hershey Food Corp. .............................. 388 18,818
Hewlett-Packard Co. ............................. 2,797 349,275
Hilton Hotels Corp. ............................. 1,035 9,703
Home Depot, Inc. ................................ 6,461 322,646
Homestake Mining Co. ............................ 731 5,026
Honeywell International, Inc. ................... 2,221 74,820
Household International, Inc. ................... 1,319 54,821
Humana, Inc. .................................... 470 2,291
Huntington Bancshares, Inc. ..................... 645 10,199
Illinois Tool Works, Inc. ....................... 843 48,051
IMS Health, Inc. ................................ 864 15,552
Inco Ltd. ....................................... 539 8,287
Ingersoll Rand Co. .............................. 459 18,475
Intel Corp. ..................................... 9,366 1,252,117
International Paper Co. ......................... 1,352 40,307
Interpublic Group of Cos., Inc. ................. 844 36,292
Intl. Business Machines Corp. ................... 4,958 543,211
Intl. Flavors & Fragrances ...................... 295 8,905
ITT Industries, Inc. ............................ 247 7,503
Jefferson-Pilot Corp. ........................... 294 16,593
Johnson & Johnson ............................... 3,890 396,294
Johnson Controls, Inc. .......................... 239 12,264
Kansas City Southern Inds ....................... 310 27,493
Kaufman & Broad Home Corp. ...................... 134 2,655
Kellogg Co. ..................................... 1,138 33,856
Kerr-McGee Corp. ................................ 263 15,501
KeyCorp ......................................... 1,256 22,137
Kimberly Clark Corp. ............................ 1,554 89,161
KLA Tencor Corp. ................................ 505 29,574
The accompanying notes are an integral part of these financial statements.
70
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
June 30, 2000 (Unaudited)
Shares Value
------ ----------
INDEXED ASSETS (CONTINUED):
COMMON STOCKS (CONTINUED)
Kmart Corp. ..................................... 1,385 $ 9,435
Knight-Ridder, Inc. ............................. 217 11,542
Kohl's Corp. .................................... 914 50,841
Kroger Co. ...................................... 2,334 51,494
Legget & Platt .................................. 551 9,092
Lehman Brothers Holdings, Inc. .................. 336 31,773
Lexmark Int'l Inc. .............................. 359 24,143
Lilly (Eli) & Co. ............................... 3,159 315,505
Limited, Inc. ................................... 1,206 26,080
Lincoln National Corp. .......................... 548 19,797
Linear Technology Corp. ......................... 865 55,306
Liz Claiborne, Inc. ............................. 166 5,852
Lockheed Martin Corp. ........................... 1,111 27,567
Loews Corp. ..................................... 276 16,560
Longs Drug Stores Corp. ......................... 110 2,393
Louisiana-Pacific Corp. ......................... 299 3,252
Lowe's Companies, Inc. .......................... 1,072 44,019
LSI Logic Corp. ................................. 859 46,493
Lucent Technologies ............................. 9,107 539,590
Mallinckrodt, Inc. .............................. 195 8,470
Manor Care, Inc. ................................ 289 2,023
Marriott International, Inc. .................... 670 24,162
Marsh & McLennan Cos., Inc. ..................... 748 78,119
Masco Corp. ..................................... 1,255 22,668
Mattel, Inc. .................................... 1,181 15,574
Maxim Integrated Products, Inc. ................. 790 53,671
May Department Stores Co. ....................... 938 22,512
Maytag Corp. .................................... 237 8,739
MBIA, Inc. ...................................... 279 13,444
MBNA Corp. ...................................... 2,250 61,031
McDermott International, Inc. ................... 168 1,481
McDonald's Corp. ................................ 3,737 123,087
McGraw-Hill Cos., Inc. .......................... 550 29,700
McKesson HBOC, Inc. ............................. 790 16,541
Mead Corp. ...................................... 288 7,272
Medimmune, Inc. ................................. 584 43,216
Medtronic, Inc. ................................. 3,354 167,071
Mellon Financial Corp. .......................... 1,374 50,065
Merck & Co., Inc. ............................... 6,431 492,775
Mercury Interactive Corp. ....................... 210 20,318
Meredith Corp. .................................. 145 4,894
Merrill Lynch & Co., Inc. ....................... 1,085 124,775
MGIC Investment Corp. ........................... 297 13,514
Micron Technology, Inc. ......................... 1,552 136,673
Microsoft Corp. ................................. 14,718 1,177,402
Millipore Corp. ................................. 127 9,573
Minnesota Mining & Mfg. Co. ..................... 1,107 91,328
Molex Inc., Cl A ................................ 550 26,469
Morgan (J.P.) & Co., Inc. ....................... 454 49,997
Morgan Stanley Dean Witter ...................... 3,165 263,486
Motorola, Inc. .................................. 6,019 174,927
Nabisco Group Holdings .......................... 916 23,759
National City Corp. ............................. 1,730 29,518
National Semiconductor Corp. .................... 481 27,297
National Service Industries ..................... 114 2,223
Navistar International Corp. .................... 179 5,560
NCR Corp. ....................................... 271 10,552
Network Appliance, Inc. ......................... 852 68,586
New Century Energies, Inc. ...................... 324 9,720
New York Times Co. Cl A ......................... 480 18,960
Newell Rubbermaid, Inc. ......................... 745 19,184
Newmont Mining Corp. ............................ 470 10,164
Nextel Communications, Inc. ..................... 2,121 129,779
Niagara Mohawk Holdings, Inc. ................... 525 7,317
Nicor, Inc. ..................................... 132 4,307
Nike, Inc. Cl B ................................. 785 31,253
Nordstrom, Inc. ................................. 388 9,361
Norfolk Southern Corp. .......................... 1,068 15,887
Nortel Networks Corp. Holding ................... 8,285 565,451
Northern States Power Co. ....................... 434 8,761
Northern Trust Corp. ............................ 624 40,599
Northrop Grumman Corp. .......................... 195 12,919
Novell, Inc. .................................... 934 8,640
Novellus Systems, Inc. .......................... 365 20,645
Nucor Corp. ..................................... 244 8,098
Occidental Petroleum Corp. ...................... 1,031 21,715
Office Depot, Inc. .............................. 923 5,769
Old Kent Financial Corp. ........................ 384 10,280
Omnicom Group, Inc. ............................. 498 44,353
Oneok, Inc. ..................................... 88 2,283
Oracle Corp. .................................... 7,938 667,288
Owens Corning ................................... 154 1,425
Owens-Illinois, Inc. ............................ 421 4,920
Paccar, Inc. .................................... 220 8,731
Pactiv Corp. .................................... 480 3,780
Paine Webber Group, Inc. ........................ 401 18,246
Pall Corp. ...................................... 349 6,457
Parametric Technology Corp. ..................... 756 8,316
Parker Hannifin Corp. ........................... 314 10,755
Paychex, Inc. ................................... 1,038 43,596
PE Corp-PE Biosystems Group ..................... 578 38,076
Peco Energy Co. ................................. 474 19,108
Penney (J.C.) Co., Inc. ......................... 730 13,459
Peoples Energy Corp. ............................ 99 3,205
Peoplesoft, Inc. ................................ 753 12,613
PepsiCo, Inc. ................................... 4,030 179,083
Perkin Elmer, Inc. .............................. 129 8,530
Pfizer, Inc. .................................... 17,605 845,040
PG & E Corp. .................................... 1,077 26,521
Pharmacia Corp. ................................. 3,550 183,491
Phelps Dodge Corp. .............................. 227 8,452
Phillip Morris Cos., Inc. ....................... 6,395 169,867
Phillips Petroleum Co. .......................... 711 36,039
Pinnacle West Capital Corp. ..................... 238 8,062
Pitney Bowes, Inc. .............................. 745 29,800
Placer Dome, Inc. ............................... 913 8,731
PNC Financial Services Group .................... 825 38,672
Polaroid Corp. .................................. 125 2,258
Potlatch Corp. .................................. 81 2,683
PPG Industries, Inc. ............................ 488 21,625
PPL Corporation ................................. 403 8,841
Praxair, Inc. ................................... 445 16,660
Price (T. Rowe) Associates ...................... 336 14,280
Proctor & Gamble Co. ............................ 3,658 209,421
Progressive Corp. of Ohio ....................... 205 15,170
Providian Financial Corp. ....................... 398 35,820
Public Svc. Enterprise Group .................... 613 21,225
Pulte Corp. ..................................... 122 2,638
Quaker Oats Co. ................................. 376 28,247
Qualcomm, Inc. .................................. 2,063 123,780
Quintiles Transnational Corp. ................... 323 4,562
Radioshack Corp. ................................ 542 25,677
Ralston Purina Co. .............................. 856 17,067
Raytheon Co. .................................... 949 18,268
Reebok International Ltd. ....................... 158 2,518
Regions Financial Corp. ......................... 613 12,183
Reliant Energy, Inc. ............................ 830 24,537
Rite-Aid Corp. .................................. 727 4,771
The accompanying notes are an integral part of these financial statements.
71
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
June 30, 2000 (Unaudited)
Shares Value
------ ----------
INDEXED ASSETS (CONTUNUED):
COMMON STOCKS (CONTUNUED)
Rockwell Intl., Corp. ........................... 534 $ 16,821
Rohm Haas Co. ................................... 614 21,183
Rowan Cos., Inc. ................................ 259 7,867
Royal Dutch Petroleum Co. N.Y ................... 5,997 369,190
Russell Corp. ................................... 93 1,860
Ryder System, Inc. .............................. 180 3,409
Sabre Group Holdings, Inc. ...................... 363 10,346
Safeco Corp. .................................... 365 7,254
Safeway, Inc. ................................... 1,388 62,634
Sanmina Corp. ................................... 415 35,483
Sapient Corp. ................................... 160 17,110
Sara Lee Corp. .................................. 2,432 46,968
SBC Communications, Inc. ........................ 9,514 411,481
Schering-Plough Corp. ........................... 4,095 206,798
Schlumberger, Ltd. .............................. 1,592 118,803
Scientific-Atlanta, Inc. ........................ 442 32,929
Seagate Technology .............................. 635 34,925
Seagram Co. Ltd. (The) .......................... 1,216 70,528
Sealed Air Corp. New ............................ 235 12,308
Sears Roebuck & Co. ............................. 986 32,168
Sempra Energy ................................... 573 9,741
Sherwin-Williams Co. ............................ 465 9,852
Siebel Systems, Inc. ............................ 558 91,268
Sigma-Aldrich Corp. ............................. 238 6,962
SLM Holding Corp. ............................... 447 16,735
Snap-On, Inc. ................................... 164 4,367
Solectron Corp. ................................. 1,644 68,843
Southern Co. .................................... 1,814 42,289
Southtrust Corp ................................. 470 10,634
Southwest Airlines Co. .......................... 1,416 26,816
Springs Industries, Inc. Cl A ................... 50 1,609
Sprint Corp. (FON Group) ........................ 2,446 124,746
Sprint Corp. (PCS Group) ........................ 2,560 152,320
St. Jude Medical, Inc. .......................... 236 10,827
St. Paul Companies, Inc. ........................ 593 20,236
Stanley Works ................................... 251 5,961
Staples, Inc. ................................... 1,303 20,034
Starbucks Corp. ................................. 513 19,590
State Street Corp. .............................. 449 47,622
Summit Bancorp .................................. 490 12,066
Sun Microsystems, Inc. .......................... 4,437 403,490
Sunoco, Inc. .................................... 253 7,448
Suntrust Banks, Inc. ............................ 846 38,652
Supervalu, Inc. ................................. 392 7,473
Synovus Financial Corp. ......................... 785 13,836
Sysco Corp. ..................................... 924 38,924
Target Corp. .................................... 1,275 73,950
Tektronix, Inc. ................................. 133 9,842
Tellabs, Inc. ................................... 1,145 78,361
Temple-Inland, Inc. ............................. 156 6,552
Tenet Healthcare Corp. .......................... 874 23,598
Teradyne, Inc. .................................. 480 35,280
Texaco, Inc. .................................... 1,552 82,644
Texas Instruments, Inc. ......................... 4,577 314,383
Textron, Inc. ................................... 417 22,648
Thermo Electron Corp. ........................... 444 9,352
Thomas & Betts Corp. ............................ 163 3,117
Tiffany & Co. ................................... 200 13,500
Time Warner, Inc. ............................... 3,680 279,680
Timken Co. ...................................... 174 3,241
TJX Companies, Inc. ............................. 870 16,313
Torchmark Corp. ................................. 369 9,110
Tosco Corp. ..................................... 403 11,410
Toys R Us, Inc. ................................. 605 8,810
Transocean Sedco Forex, Inc. .................... 582 31,101
Tribune Co. ..................................... 863 30,188
Tricon Global Restaurants Inc. .................. 431 12,176
TRW, Inc. ....................................... 341 14,791
Tupperware Corp. ................................ 161 3,542
TXU Corp. ....................................... 738 21,771
Tyco International Ltd. ......................... 4,739 224,510
U.S. Bancorp .................................... 2,103 40,483
U.S. West, Inc. ................................. 1,418 121,594
Unicom Corp. .................................... 497 19,228
Unilever N.V .................................... 1,604 68,972
Union Carbide Corp. ............................. 376 18,612
Union Pacific Corp. ............................. 697 25,920
Union Pacific Resources Group ................... 707 15,554
Union Planters Corp. ............................ 396 11,063
Unisys Corp. .................................... 870 12,669
United Technologies Corp. ....................... 1,316 77,480
UnitedHealth Group Inc. ......................... 454 38,931
Unocal Corp. .................................... 680 22,525
UNUMProvident Corp. ............................. 674 13,522
US Airways Group Inc. ........................... 201 7,839
UST, Inc. ....................................... 480 7,050
USX-Marathon Group .............................. 872 21,855
USX-U.S. Steel Group ............................ 248 4,604
V F Corp. ....................................... 331 7,882
Veritas Software Corp. .......................... 1,093 123,526
Verizon Communications .......................... 4,323 219,662
Viacom, Inc. Cl B ............................... 4,276 291,570
Visteon Corp. ................................... 364 4,410
Vulcan Materials Co. ............................ 280 11,953
W.R. Grace & Co. ................................ 201 2,437
Wachovia Corp. .................................. 568 30,814
Walgreen Co. .................................... 2,816 90,640
Wal-Mart Stores, Inc. ........................... 12,465 718,296
Washington Mutual, Inc. ......................... 1,532 44,237
Waste Management, Inc. .......................... 1,738 33,022
Watson Pharmaceuticals, Inc. .................... 269 14,459
Wellpoint Health Networks Inc. .................. 179 12,966
Wells Fargo & Company ........................... 4,506 174,608
Wendy's International, Inc. ..................... 335 5,967
Westvaco Corp. .................................. 282 6,997
Weyerhaeuser Co. ................................ 659 28,337
Whirlpool Corp. ................................. 208 9,698
Willamette Industries, Inc. ..................... 313 8,529
Williams Cos., Inc. ............................. 1,220 50,859
Winn-Dixie Stores, Inc. ......................... 417 5,968
WorldCom Inc. ................................... 8,007 367,321
Worthington Industries, Inc. .................... 251 2,636
Wrigley (Wm.) Jr. Co. ........................... 325 26,061
Xerox Corp. ..................................... 1,864 38,678
Xilinx, Inc. .................................... 895 73,893
Yahoo!, Inc. .................................... 1,519 188,166
Young & Rubicam, Inc. ........................... 195 11,152
----------
TOTAL INDEXED ASSETS--COMMON STOCKS
(Cost: $33,322,992) 96.8% ......................... 35,115,205
==========
The accompanying notes are an integral part of these financial statements.
72
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (EQUITY INDEX FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
June 30, 2000 (Unaudited)
Face
Rate Maturity Amount Value
------- --------- -------- -----------
ACTIVE PORTION:
SHORT-TERM DEBT SECURITIES:
U. S. GOVERNMENT (0.2%)
U.S. Treasury Bill(a) ............. 5.54% 07/27/00 $ 50,000 $ 49,798
U.S. Treasury Bill(a) ............. 5.58 09/07/00 10,000 9,891
-----------
59,689
-----------
COMMERCIAL PAPER (3.0%)
General Motors Acceptance Corp. ... 6.95 07/07/0 595,000 594,311
SBC Communications, Inc. .......... 6.83 07/03/0 500,000 499,810
-----------
1,094,121
-----------
TOTAL SHORT-TERM DEBT SECURITIES
(Cost: $1,153,813) 3.2% ......................................... 1,153,810
TOTAL INVESTMENTS
(Cost: $34,476,805) 100.0% ...................................... $36,269,015
===========
-------------
FUTURES CONTRACTS OUTSTANDING AS OF JUNE 30, 2000:
<TABLE>
<CAPTION>
Expiration Underlying Face Unrealized
Date Amount at Value (Loss)
------------- --------------- ----------
<S> <C> <C> <C>
PURCHASED
3 S&P 500 Stock Index Futures Contracts ....... September 2000 $1,101,075 $(7,550)
========== ========
</TABLE>
Face value of futures purchased and outstanding as a percentage of total
investments in securities: 3.0%.
-------------
(a) This security, or a portion thereof, has been segregated to cover initial
margin requirements on open futures contracts.
The accompanying notes are an integral part of these financial statements.
73
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES:
U.S. GOVERNMENT (15.7%)
U.S. Treasury Bond ....................................... 7.13% 02/15/23 $1,500,000 $ 1,667,115
U.S. Treasury Bond ....................................... 6.13 11/15/27 2,000,000 1,995,620
U.S. Treasury Note ....................................... 6.63 04/30/02 500,000 501,560
-----------
4,164,295
-----------
AGENCIES/OTHER GOVT'S. (11.5%)
FHLMC .................................................... 6.50 10/15/06 140,379 139,588
FHLMC .................................................... 7.63 09/09/09 500,000 492,970
FNMA ..................................................... 7.00 11/25/05 299,033 298,005
FNMA ..................................................... 8.00 07/15/06 161,371 163,085
FNMA ..................................................... 7.00 10/25/07 1,000,000 991,560
Republic of Iceland ...................................... 6.13 02/01/04 1,000,000 969,880
-----------
3,055,088
-----------
BASIC MATERIALS (8.8%)
Cytec Industries, Inc. ................................... 6.85 05/11/05 500,000 455,280
Georgia-Pacific Group .................................... 8.63 04/30/25 250,000 233,810
Millennium America Inc. .................................. 7.63 11/15/26 1,000,000 724,060
Praxair, Inc. ............................................ 6.90 11/01/06 500,000 468,585
Solutia, Inc. ............................................ 6.72 10/15/37 500,000 471,795
-----------
2,353,530
-----------
CONSUMER, CYCLICAL (14.9%)
Fruit of the Loom, Inc. .................................. 7.00 03/15/11 250,000 85,000
Fruit of the Loom, Inc. .................................. 7.38 11/15/23 250,000 126,250
Hasbro, Inc. ............................................. 8.50 03/15/06 500,000 494,140
Kellwood, Co. ............................................ 7.88 07/15/09 1,000,000 874,200
Oakwood Homes Corp. ...................................... 8.13 03/01/09 1,000,000 943,327
Polaroid Corp. ........................................... 7.25 01/15/07 250,000 217,413
Pulte Corp. .............................................. 7.63 10/15/17 500,000 397,920
Tommy Hilfiger USA, Inc. ................................. 6.50 06/01/03 500,000 380,000
Venator Group, Inc. ...................................... 7.00 10/15/02 500,000 450,000
-----------
3,968,250
-----------
CONSUMER, NON-CYCLICAL (3.9%)
Supervalu, Inc. .......................................... 8.88 11/15/22 1,000,000 1,035,830
-----------
ENERGY (5.5%)
Arco Chemical Co. ........................................ 10.25 11/01/10 500,000 491,450
Columbia Energy Group .................................... 6.61 11/28/02 1,000,000 971,960
-----------
1,463,410
-----------
FINANCIAL (18.1%)
Bear Stearns Cos., Inc. .................................. 6.63 10/01/04 1,000,000 954,740
Chase Manhattan Corp. .................................... 6.88 12/12/12 1,000,000 925,590
Executive Risk, Inc. ..................................... 7.13 12/15/07 500,000 493,030
First American Corp. ..................................... 7.55 04/01/28 500,000 438,400
Fremont General Corp. .................................... 7.70 03/17/04 500,000 200,000
Harleysville Group Inc. .................................. 6.75 11/15/03 250,000 242,293
Lehman Brothers Holdings, Inc. ........................... 0.00 07/28/28 1,000,000 103,440
Morgan (J.P.) & Co., Inc. ................................ 0.00 04/15/27 2,500,000 285,525
</TABLE>
The accompanying notes are an integral part of these financial statements.
74
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (BOND FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES (Continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Face
Rate Maturity Amount Value
------- -------- --------- -----------
<S> <C> <C> <C> <C>
LONG-TERM DEBT SECURITIES (CONTINUED):
FINANCIAL (CONTINUED)
Nationwide Health Properties ............................. 7.90% 11/20/06 $ 500,000 $ 460,405
Rank Group Financial ..................................... 6.75 11/30/04 500,000 462,195
Triad Guaranty ........................................... 7.90 01/15/28 250,000 243,165
-----------
4,808,783
-----------
HEALTHCARE (3.6%)
Bausch & Lomb, Inc. ...................................... 6.38 08/01/03 500,000 482,065
Bausch & Lomb, Inc. ...................................... 6.75 12/15/04 500,000 475,930
-----------
957,995
-----------
INDUSTRIAL (12.5%)
Clark Equipment Co. ...................................... 8.35 05/15/23 500,000 499,975
Geon Co. ................................................. 7.50 12/15/15 250,000 236,762
Owens Corning ............................................ 7.00 03/15/09 1,000,000 691,640
Thermo Electron Corp. .................................... 4.25 01/01/03 1,000,000 922,500
Williams Cos., Inc. ...................................... 6.50 11/15/02 1,000,000 975,570
-----------
3,326,447
-----------
UTILITIES (1.7%)
UtiliCorp United, Inc. ................................... 8.00 03/01/23 500,000 466,220
-----------
TOTAL LONG-TERM DEBT SECURITIES (Cost: $27,529,744) 96.2% .................................... 25,599,848
-----------
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER (3.8%)
General Motors Acceptance Corp. .......................... 6.95 07/07/00 450,000 449,479
IBM Credit Corp. ......................................... 6.70 07/03/00 558,000 557,792
-----------
1,007,271
-----------
TOTAL SHORT-TERM DEBT SECURITIES (Cost: $1,007,271) 3.8% ..................................... 1,007,271
-----------
TOTAL INVESTMENTS 100.0% (Cost: $28,537,015) ................................................. $26,607,119
===========
</TABLE>
-------------
Abbreviations: FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
The accompanying notes are an integral part of these financial statements.
75
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC. (MONEY MARKET FUND)
PORTFOLIO OF INVESTMENTS IN SECURITIES
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Discount Face
Rating* Rate Maturity Amount Value
-------- -------- -------- ------------------------
<S> <C> <C> <C> <C> <C>
SHORT-TERM DEBT SECURITIES:
COMMERCIAL PAPER 100%
Alabama Power Co. ................................ A1/P1 6.54% 07/14/00 $1,000,000 $ 997,631
American Express Credit Corp. .................... A1/P1 6.56 07/24/00 470,000 468,016
American Express Credit Corp. .................... A1/P1 6.56 07/25/00 405,000 403,217
Associates Corp. North America ................... A1+/P1 6.52 08/07/00 1,500,000 1,489,904
AT&T Corp. ....................................... A1+/P1 6.61 08/01/00 1,500,000 1,491,413
Becton Dickinson & Co. ........................... A1/P1 6.54 07/13/00 1,150,000 1,147,473
Bell Atlantic Network Funding Corp. .............. A1+/P1 6.50 07/28/00 790,000 786,133
Bell South Telecommunications Corp. .............. A1+/P1 6.30 07/05/00 506,000 505,642
Bell South Capital Funding Corp. ................. A1+/P1 6.52 08/15/00 750,000 743,875
Bemis, Inc. ...................................... A1/P1 6.53 08/11/00 1,570,000 1,558,290
Coca Cola ........................................ A1+/P1 6.58 08/01/00 168,000 167,043
Coca Cola ........................................ A1+/P1 6.58 08/07/00 740,000 734,961
DaimlerChrysler NA Holdings Corp. ................ A1/P1 6.53 08/14/00 1,000,000 991,993
Donnelley (RR) & Sons Co. ........................ A1/P1 6.40 07/05/00 1,500,000 1,498,922
Du Pont (E.I.) de Nemours ........................ A1+/P1 6.58 08/02/00 900,000 894,707
Du Pont (E.I.) de Nemours ........................ A1+/P1 6.56 07/21/00 697,000 694,445
Ford Motor Credit Co., Inc. Puerto Rico .......... A1/P1 6.44 07/06/00 1,580,000 1,578,572
Gannett, Inc. .................................... A1+/P1 6.50 07/10/00 1,250,000 1,247,952
General Electric Capital Corp. ................... A1+/P1 6.54 08/08/00 590,000 585,909
Grainger (W.W.), Inc. ............................ A1+/P1 6.53 07/17/00 1,460,000 1,455,726
Great Lakes Chemical Corp. ....................... A1/P1 6.55 08/07/00 1,500,000 1,489,869
Heinz (H.J.) Co. ................................. A1/P1 6.53 07/13/00 1,425,000 1,421,876
Kansas City Power & Light Co. .................... A1/P1 6.55 08/22/00 891,000 882,547
Kimberly-Clark Corp. ............................. A1+/P1 6.52 07/25/00 964,000 959,788
Kimberly-Clark Corp. ............................. A1+/P1 6.54 08/04/00 375,000 372,674
Motorola, Inc. ................................... A1+/P1 6.54 08/18/00 1,417,000 1,404,617
New York Times Co. ............................... A1/P1 6.53 08/03/00 1,025,000 1,018,837
New York Times Co. ............................... A1/P1 6.52 08/04/00 800,000 795,053
Northern States Power Co. ........................ A1+/P1 6.53 07/05/00 1,515,000 1,513,891
Potomac Electric Power Co. ....................... A1/P1 6.53 07/28/00 740,000 736,369
Potomac Electric Power Co. ....................... A1/P1 6.60 08/07/00 980,000 973,349
7-Eleven Inc. .................................... A1+/P1 6.50 07/03/00 650,000 649,763
SBC Communications, Inc. ......................... A1+/P1 6.30 07/06/00 1,505,000 1,503,668
Sherwin-Williams Co. ............................. A1/P1 6.55 08/02/00 798,000 793,345
Snap-On, Tools Corp. ............................. A1+/P1 6.58 07/11/00 1,500,000 1,497,238
Unilever Capital Corp. ........................... A1+/P1 6.45 07/11/00 1,500,000 1,497,287
Wal-Mart Stores, Inc. ............................ A1+/P1 6.51 07/25/00 1,000,000 995,631
Washington Post Co. .............................. A1+/P1 6.53 08/01/00 1,500,000 1,491,525
Wisconson Energy Corp. ........................... A1+/P1 6.53 07/19/00 1,230,000 1,225,971
-----------
Total Short-Term Debt Securities (Cost: $40,665,122) 100% .......................................... $40,665,122
===========
</TABLE>
-------------
* The ratings are provided by Standard & Poor's Corporation/Moody's Investor
Services, Inc.
The accompanying notes are an integral part of these financial statements.
76
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
All America Equity Index Bond Money Market
Fund Fund Fund Fund
------------ ------------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments at market value (Notes 1 and 3)
(Cost:
All America Fund -- $51,529,161
Equity Index Fund -- $34,476,805
Bond Fund -- $28,537,015
Money Market Fund-- $40,665,122) ................... $68,998,175 $36,269,015 $26,607,119 $40,665,122
Cash .................................................. 261,169 7,325 5,463 56,770
Interest and dividends receivable ..................... 49,116 27,746 432,016 --
Receivable for securities sold ........................ 676,744 66,773 -- --
Shareholder subscriptions receivable .................. -- -- -- 49,838
----------- ----------- ----------- -----------
TOTAL ASSETS .......................................... 69,985,204 36,370,859 27,044,598 40,771,730
----------- ----------- ----------- -----------
LIABILITIES:
Payable for securities purchased ...................... 1,305,239 142,121 -- --
Dividend payable to shareholders ...................... 2,790 1,105 7,237 7,707
Shareholder redemptions payable ....................... -- -- -- 25,000
Accrued expenses ...................................... 747 100 93 201
----------- ----------- ----------- -----------
TOTAL LIABILITIES ..................................... 1,308,776 143,326 7,330 32,908
----------- ----------- ----------- -----------
NET ASSETS ............................................ $68,676,428 $36,227,533 $27,037,268 $40,738,822
=========== =========== =========== ===========
SHARES OUTSTANDING (Note 4) ........................... 3,993,684 3,387,228 2,889,980 3,900,931
=========== =========== =========== ===========
NET ASSET VALUE PER SHARE ............................. $17.20 $10.70 $9.36 $10.44
====== ====== ===== ======
</TABLE>
The accompanying notes are an integral part of these financial statements.
77
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
All America Equity Index Bond Money Market
Fund Fund Fund Fund
------------ ------------- ----------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME (Note 1):
Dividends ...................................... $ 348,603 $ 177,970 $ -- $ --
Interest ....................................... 195,700 36,430 1,072,286 1,049,450
------------ ------------ ------------ ------------
Total Investment Income .......................... 544,303 214,400 1,072,286 1,049,450
------------ ------------ ------------ ------------
Expenses (Note 2):
Investment management fees ..................... 198,567 20,544 60,338 34,362
Directors' (independent) fees and expenses ..... 16,709 16,708 16,708 16,709
Custodian expenses ............................. 38,686 22,108 2,024 2,356
Accounting expenses ............................ 15,000 11,000 15,000 15,000
Transfer agent fees ............................ 17,044 12,680 15,967 18,411
Registration fees and expenses ................. 17,545 14,758 14,312 10,978
Audit .......................................... 6,075 2,700 2,025 2,700
Printing ....................................... 6,515 2,875 2,425 2,625
Other .......................................... 3,505 1,135 1,250 1,305
------------ ------------ ------------ ------------
Total Expenses before reimbursement ............... 319,646 104,508 130,049 104,446
Expense reimbursement ............................. (448) (51,093) (36,190) (35,721)
------------ ------------ ------------ ------------
Net Expenses ...................................... 319,198 53,415 93,859 68,725
------------ ------------ ------------ ------------
NET INVESTMENT INCOME ............................. 225,105 160,985 978,427 980,725
------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 1):
Net realized gain (loss) from security transactions 15,141,754 324,699 (5,428) (234
Net unrealized appreciation (depreciation)
of investments ................................. (12,068,028) (230,234) (351,288) 50
------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ................................. 3,073,726 94,465 (356,716) (184)
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ................................ $ 3,298,831 $ 255,450 $ 621,711 $ 980,541
============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
78
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
All America Fund Equity Index Fund
------------------------------- -------------------------------
For the Six For the Year For the Six For the Year
Months Ended Ended Months Ended Ended
June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999(a)
------------- ------------- -------------- ------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income ............................. $ 225,105 $ 321,561 $ 160,985 $ 210,780
Net realized gain (loss) on investments ........... 15,141,754 9,735,794 324,699 194,402
Net unrealized appreciation (depreciation)
of investments .................................. (12,068,028) 4,620,245 (230,234) 2,022,444
------------ ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS .......................... 3,298,831 14,677,600 255,450 2,427,626
------------ ------------ ----------- -----------
Dividend Distributions (Note 6):
From net investment income ........................ (212,540) (313,199) (152,637) (206,332)
From capital gains ................................ -- (9,376,382) -- (54,088)
------------ ------------ ----------- -----------
Total Distributions .................................. (212,540) (9,689,581) (152,637) (260,420)
------------ ------------ ----------- -----------
CAPITAL SHARE TRANSACTIONS (Note 4):
Net Proceeds from sale of shares .................. 19,420,718 5,281,443 7,113,109 27,076,821
Dividend reinvestments ............................ 209,750 9,579,059 151,532 259,510
Cost of shares redeemed ........................... (26,406,332) (18,282,044) (618,458) (25,000)
------------ ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS .................... (6,775,864) (3,421,542) 6,646,183 27,311,331
------------ ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS ................ (3,689,573) 1,566,477 6,748,996 29,478,537
NET ASSETS, BEGINNING OF PERIOD/YEAR ................. 72,366,001 70,799,524 29,478,537 --
------------ ------------ ----------- -----------
NET ASSETS, END OF PERIOD/YEAR ....................... $ 68,676,428 $ 72,366,001 $36,227,533 $29,478,537
============ ============ =========== ===========
COMPONENTS OF NET ASSETS:
Paid-in capital ................................... $ 34,898,869 $ 41,674,733 $33,957,514 $27,311,331
Accumulated undistributed net investment
income .......................................... 14,275 1,710 12,796 4,448
Accumulated undistributed net realized
gain(loss) on investments ....................... 16,294,270 1,152,516 465,013 140,314
Unrealized appreciation (depreciation)
of investments .................................. 17,469,014 29,537,042 1,792,210 2,022,444
------------ ------------ ----------- -----------
NET ASSETS, END OF PERIOD/YEAR ....................... $ 68,676,428 $ 72,366,001 $36,227,533 $29,478,537
============ ============ =========== ===========
</TABLE>
-------------
(a) Commenced operations May 3, 1999.
The accompanying notes are an integral part of these financial statements.
79
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Bond Fund Money Market Fund
------------------------------ ------------------------------
For the Six For the Year For the Six For the Year
Months Ended Ended Months Ended Ended
June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999
-------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income ............................. $ 978,427 $ 1,681,213 $ 980,725 $ 805,566
Net realized gain (loss) on investments ........... (5,428) (77,457) (234) (43)
Net unrealized appreciation (depreciation)
of investments .................................. (351,288) (2,560,834) 50 (50)
----------- ----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS .......................... 621,711 (957,078) 980,541 805,473
----------- ----------- ------------ -----------
Dividend Distributions (Note 6):
From net investment income ........................ (884,808) (1,688,057) (931,772) (800,206)
From capital gains ................................ -- (16,659) -- --
----------- ----------- ------------ -----------
Total Distributions .................................. (884,808) (1,704,716) (931,772) (800,206)
----------- ----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS (Note 4):
Net Proceeds from sale of shares .................. 480,958 5,911,602 19,618,275 29,396,830
Dividend reinvestments ............................ 877,571 1,690,023 927,442 785,550
Cost of shares redeemed ........................... (2,779,448) (1,453,099) (10,027,390) (6,528,017)
----------- ----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS .................... (1,420,919) 6,148,526 10,518,327 23,654,363
----------- ----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS ................ (1,684,016) 3,486,732 10,567,096 23,659,630
NET ASSETS, BEGINNING OF PERIOD/YEAR ................. 28,721,284 25,234,552 30,171,726 6,512,096
----------- ----------- ------------ -----------
NET ASSETS, END OF PERIOD/YEAR ....................... $27,037,268 $28,721,284 $ 40,738,822 $30,171,726
=========== =========== ============ ===========
COMPONENTS OF NET ASSETS:
Paid-in capital ................................... $29,178,630 $30,599,549 $ 40,684,393 $30,166,066
Accumulated undistributed net investment
income .......................................... 80,244 (13,375) 54,894 5,941
Accumulated undistributed net realized
gain(loss) on investments ....................... (291,710) (286,283) (465) (231)
Unrealized appreciation (depreciation) of
investments ..................................... (1,929,896) (1,578,607) -- (50)
----------- ----------- ------------ -----------
NET ASSETS, END OF PERIOD/YEAR ...................... $27,037,268 $28,721,284 $ 40,738,822 $30,171,726
=========== =========== ============ ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
80
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
All America Fund Equity Index Fund
----------------------------------------------- -------------------------
Six Months Six Months
Ended Ended Year
June 30, Years Ended December 31, June 30, Ended
SELECTED PER SHARE AND 2000 --------------------------------- 2000 December 31,
SUPPLEMENTARY DATA: (Unaudited) 1999 1998 1997 1996(e) (Unaudited) 1999(d)
------------------- ----------- ---- ---- ---- ------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD/YEAR ..... $16.47 $15.08 $12.65 $10.98 $10.00 $10.80 $10.00
------ ------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income ......................... 0.05 0.09 0.07 0.08 0.06 0.05 0.08
Net gains or losses on securities -- realized
and unrealized ............................. 0.73 3.81 2.57 2.77 0.98 (0.10) 0.82
------ ------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS .............. 0.78 3.90 2.64 2.85 1.04 (0.05) 0.90
------ ------ ------ ------ ------ ------ ------
Less dividend distributions:
From net investment income .................... (0.05) (0.08) (0.08) (0.08) (0.06) (0.05) (0.08)
From capital gains ............................ -- (2.43) (0.13) (1.10) -- -- (0.02)
------ ------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS ........................... (0.05) (2.51) (0.21) (1.18) (0.06) (0.05) (0.10)
------ ------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD/YEAR ........... $17.20 $16.47 $15.08 $12.65 $10.98 $10.70 $10.80
====== ====== ====== ====== ====== ====== ======
Total return (%) (b) .......................... 4.7 26.0 21.0 26.0 10.4 (0.5) 9.0
Net assets, end of year ($ millions) .......... 68.7 72.4 70.8 56.7 55.5 36.2 29.5
Ratio of net investment income to average net
assets (%) ................................. 0.57(a) 0.51 0.55 0.59 0.95(a) 0.98(a) 1.22(a)
Ratio of expenses to average net assets (%). .. 0.81(a) 0.85 0.84 0.84 0.87(a) 0.64(a) 0.63(a)
Ratio of expenses to average net assets after
expense reimbursement (%) ..................... 0.81(a) 0.84 0.82 0.81 0.85(a) 0.33(a) 0.32(a)
Portfolio turnover rate (%) (c) ............... 46.10 34.89 41.25 35.96 9.33 1.53 5.67
</TABLE>
<TABLE>
<CAPTION>
Bond Fund
---------------------------------------------
Six Months
Ended
June 30, Years Ended December 31,
SELECTED PER SHARE AND 2000 ---------------------------------
SUPPLEMENTARY DATA: (Unaudited) 1999 1998 1997 1996(e)
------------------- ----------- ---- ---- ---- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD/YEAR ..... $ 9.45 $10.41 $10.41 $10.13 $10.01
------ ------ ------ ------ ------
Income from investment operations:
Net investment income ......................... 0.36 0.60 0.61 0.59 0.38
Net gains or losses on securities -- realized
and unrealized ............................ (0.13) (0.87) 0.24 0.29 0.12
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS .............. 0.23 (0.27) 0.85 0.88 0.50
------ ------ ------ ------ ------
Less dividend distributions:
From net investment income .................... (0.32) (0.60) (0.62) (0.59) (0.38)
From capital gains ............................ -- (0.09) (0.23) (0.01) --
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS ........................... (0.32) (0.69) (0.85) (0.60) (0.38)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD/YEAR ........... $ 9.36 $ 9.45 $10.41 $10.41 $10.13
====== ====== ====== ====== ======
Total return (%) (b) .......................... 2.4 (3.5) 8.3 8.9 5.0
Net assets, end of year ($ millions) .......... 27.0 28.7 25.2 22.1 21.0
Ratio of net investment income to average net
assets (%) ................................. 7.32(a) 6.23 5.84 5.69 5.63(a)
Ratio of expenses to average net assets (%). .. 0.97(a) 0.93 0.97 1.00 0.90(a)
Ratio of expenses to average net assets after
expense reimbursement (%) ..................... 0.70(a) 0.70 0.70 0.70 0.70(a)
Portfolio turnover rate (%) (c) ............... 18.29 10.07 33.32 56.18 17.85
</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 3, 1999.
(e) Commenced operations May 1, 1996.
The accompanying notes are an integral part of these financial statements.
81
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
Money Market Fund
----------------------------------------------
Six Months
Ended
June 30, Years Ended December 31,
SELECTED PER SHARE AND 2000 ------------------------------
SUPPLEMENTARY DATA: (Unaudited) 1999 1998 1997(d)
------------------- ----------- ---- ---- -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD/YEAR ..... $10.39 $10.23 $10.15 $10.00
------ ------ ------ ------
Income from investment operations:
Net investment income ......................... 0.29 0.50 0.52 0.35
Net gains or losses on securities -- realized
and unrealized ............................. -- -- -- --
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS .............. 0.29 0.50 0.52 0.35
------ ------ ------ ------
Less dividend distributions:
From net investment income .................... (0.24) (0.34) (0.44) (0.20)
From capital gains ............................ -- -- -- --
------ ------ ------ ------
TOTAL DISTRIBUTIONS ........................... (0.24) (0.34) (0.44) (0.20)
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD/YEAR ........... $10.44 $10.39 $10.23 $10.15
====== ====== ====== ======
Total return (%) (b) .......................... 2.9 4.9 5.3 3.5
Net assets, end of year ($ millions) .......... 40.7 30.2 6.5 7.52
Ratio of net investment income to average net
assets (%) ................................. 5.72(a) 4.86 5.14 5.17(a)
Ratio of expenses to average net assets (%). .. 0.61(a) 1.02 3.21 2.47(a)
Ratio of expenses to average net assets after
expense reimbursement (%) ..................... 0.40(a) 0.40 0.40 0.40 (a)
Portfolio turnover rate (%) (c) ............... N/A N/A N/A N/A
</TABLE>
----------
(a) Annualized.
(b) Total return would have been lower had certain expenses not been reduced
through expense reimbursement (Note 2)
(c) Portfolio turnover rate excludes all short-term securities.
(d) Commenced operations May 1, 1997.
N/A = Not Applicable.
The accompanying notes are an integral part of these financial statements.
82
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (Unaudited)
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 four series of common stock
representing shares of the All America Fund, Equity Index 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, and, the Equity Index
Fund commenced operations onMay 3, 1999.
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 and the Equity Index Fund each maintain an indexed
assets portfolio. In order to remain more fully invested in the equity markets
while minimizing its transaction costs, the funds 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.
83
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (Unaudited) (Continued)
2. EXPENSES AND OTHER TRANSACTIONS WITH AFFILIATES
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 annual rates
of .50%, .125%, .45%, and .20% of the value of the net assets for the All
America, Equity Index, Bond, and Money Market funds, respectively. 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 contractually 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%, .20%, .25%, and .20%, of the value of the net assets of the
All America, Equity Index, Bond, and Money Market funds, respectively. Accrual
of these other operating expenses is charged daily against each fund's net
assets. 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 rates of operating expenses charged daily to each fund are
subject to periodic adjustments 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 contractual
expense limitation agreement.
The Adviser's contractual agreement to limit each fund's total expenses
(excluding brokerage commissions, transfer taxes/fees and extraordinary
expenses) to annual rates of .85%, .325%, .70%, and .40% of the net assets of
the All America, Equity Index, Bond and Money Market funds, respectively, is in
effect through 2000 and continues in effect thereafter unless cancelled by the
Fund or the Adviser in accordance with the agreement.
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 expense reimbursement agreement of the Adviser described above.
A subadviser placed a portion of its portfolio transactions with its
affiliated broker-dealer; such commissions amounted to $4,278 or 5.5% of the
Fund's total commissions and represented 4.0% 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 six
months ended June 30, 2000 was as follows:
<TABLE>
<CAPTION>
All America Equity Index Bond
Fund Fund Fund
----------- ----------- ----------
<S> <C> <C> <C>
Cost of investment purchases .......................... $44,256,340 $ 8,550,173 $1,419,511
=========== =========== ==========
Proceeds from sales of investments .................... $34,198,819 $ 477,339 $ --
=========== =========== ==========
Thecost of investment purchases and proceeds
from sales of U.S. Government (excluding short-term)
securities was as follows:
Cost of investment purchases .................... $ -- $ -- $3,239,765
=========== =========== ==========
Proceeds from sales of investments ................. $ -- $ -- $4,816,564
=========== =========== ==========
</TABLE>
84
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (Unaudited) (Continued)
3. PURCHASES AND SALES (CONTINUED)
For the Money Market Fund, the cost of short-term securities purchases was
$201,701,659; net proceeds from sales and redemptions was $192,194,990.
At June 30, 2000 the net unrealized appreciation (depreciation) of
investments based on cost, which was substantially the same for Federal income
tax purposes, was as follows:
<TABLE>
<CAPTION>
All America Equity Index Bond Money Market
Fund Fund Fund Fund
------------ ----------- ------------ -------------
<S> <C> <C> <C> <C>
Unrealized appreciation ......................... $20,246,660 $5,714,116 $ 343,643 $--
Unrealized (depreciation) ....................... (2,777,646) (3,921,906) (2,273,539) --
----------- ---------- ----------- ---
Net unrealized appreciation (depreciation) ...... $17,469,014 $1,792,210 $(1,929,896) --
=========== ========== =========== ===
</TABLE>
4. CAPITAL SHARE ACTIVITY AND AFFILIATED OWNERSHIP
At June 30, 2000 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 Equity Index, Bond
and Money Market Funds.
Transactions in shares during the six months ending June 30, 2000 were as
follows:
<TABLE>
<CAPTION>
All America Equity Index Bond Money Market
Fund Fund Fund Fund
------------ ----------- ------------ -------------
<S> <C> <C> <C> <C>
Shares issued ................................... 1,180,412 699,906 50,070 1,857,685
Shares issued as reinvestment of dividends ...... 12,198 14,168 93,803 88,805
Shares redeemed ................................. (1,593,116)(1) (57,231) (294,352) (949,418)
---------- ------- ------- ---------
Net increase (decrease) ......................... (400,506) 656,843 (150,479) 997,072
========== ======= ======= =========
</TABLE>
As at June 30, 2000, Mutual Of America Life Insurance Company and its
subsidiaries (affiliates of the Adviser) were shareholders of each fund's
outstanding shares as follows:
All America Fund ............................ 57%
Equity Index Fund ........................... 75%
Bond Fund ................................... 86%
Money Market Fund ........................... 4%
5. FUND OWNERSHIP
In addition to the affiliated ownership as described in footnote #4 above,
other beneficial ownerships (shareholders owning more than 5% of a Fund's
outstanding shares) was as follows on June 30, 2000:
All America Fund: two shareholders, each owning 14% and 11%, respectively;
Equity Index Fund: one shareholder owning 14%;
Money Market Fund: two shareholders, each owning 15% and 8%, respectively.
6. DIVIDENDS
On June 30, 2000 dividend distributions were declared and paid from
accumulated net investment income to shareholders of record on June 29, 2000.
Pursuant to shareholders' instructions, substantially all dividend distributions
were immediately reinvested in additional shares of each fund.
<TABLE>
<CAPTION>
All America Equity Index Bond Money Market
Fund Fund Fund Fund
------------ ------------ ----- ------------
<S> <C> <C> <C> <C>
Distributions from:
Net investment income .......... $212,540 $152,637 $884,808 $931,772
-------- -------- -------- --------
Dividend amounts per share ..... $.053382 $.045252 $.316435 $.244555
======== ======== ======== ========
</TABLE>
--------------
(1) During May 2000, Mutual of America Life Insurance Company redeemed
approximately 1.51 million shares realizing proceeds of $25 million,
reducing the Fund's net assets by a corresponding amount.
85
