Prospectus
and Application of
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MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
EQUITY INDEX FUND
ALL AMERICA FUND
BOND FUND
MONEY MARKET FUND
May 1, 2000
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Distributed by:
MUTUAL OF AMERICA
Institutional SECURITIES CORPORATION
Funds
<PAGE>
MUTUAL OF AMERICA INSTITUTIONAL FUNDS, INC.
320 Park Avenue, New York, New York 10022 1-800-914-8716
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Mutual of America Institutional Funds, Inc. is a mutual fund. It has these four
Funds:
o Equity Index Fund
o All America 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 due upon 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.
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Prospectus dated May 1, 2000
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TABLE OF CONTENTS
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Page
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Summary of How Our Funds Invest ..................................... 1
Equity Index Fund ................................................ 1
All America Fund ................................................. 1
Bond Fund ........................................................ 2
Money Market Fund ................................................ 2
Average Annual Total Returns ..................................... 4
Annual Fees and Expenses ......................................... 4
Comparison With Prior Performance of Similar Funds ............... 5
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 ............................................... 9
Bond Fund ...................................................... 11
Money Market Fund .............................................. 12
Risks of Investing in a Stock Fund ............................... 12
Risks of Investing in a Bond Fund ................................ 13
Specific Investments or Strategies, and Related Risks ............ 14
Information on Fund Shares .......................................... 16
Pricing of Funds' Shares ......................................... 16
Purchases of Fund Shares ......................................... 16
How to Purchase Shares of the Funds .............................. 17
Redemptions of Fund Shares ....................................... 17
Exchanges of Fund Shares ......................................... 18
How to Place a Redemption or Exchange Order ...................... 18
Shareholder Reports and Confirmation Statements .................. 19
Dividends, Capital Gains Distributions and Taxation of Funds ..... 19
Shareholder Taxation ............................................. 20
Financial Highlights ................................................ 21
You May Obtain More Information ..................................... Back cover
- -- An Application is included with this Prospectus --
<PAGE>
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SUMMARY OF HOW OUR FUNDS INVEST
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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
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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.
o Securities in the S&P 500 Index generally are issued by companies with
large market capitalizations.
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, which refers
to changes in the value of security holdings (volatility of price) when
conditions in the securities markets change or the economic environment changes.
The securities in the Fund's portfolio also have credit (or financial) risk,
which refers to the issuer's earning stability and overall financial soundness.
All America Fund
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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 to replicate the
S&P 500 Index by investing in the 500 common stocks included in the S&P
500 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.
An investment in the All America Fund is subject to market risk (changes in
value when conditions in the securities market or economic environment change)
and financial risk (relating to issuers' earning stability and financial
soundness). 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.
-1-
<PAGE>
Bond Fund
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The Fund seeks current income, with preservation of shareholders' capital a
secondary objective. The Fund's securities holdings will have an average
maturity that varies according to the Adviser's view of current market
conditions.
The Fund invests primarily in publicly-traded, investment grade debt securities.
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 may invest a significant portion of its assets in a particular
type of debt security, such as U.S. Government agency mortgage-backed
securities, U.S. Treasury securities, zero coupon securities or
securities 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, 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 may be subject
to a greater market risk than higher rated debt securities, and below investment
grade securities (rated below BBB) are subject to greater market risk than
investment grade debt securites. Zero coupon securities may be subject to a
greater market risk than securities that pay interest on a regular basis.
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 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
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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 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 and
financial risk, 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.
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<PAGE>
Annual Total Returns
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The bar charts below show the annual return of each Fund for the life of the
Fund. 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 information was depicted as bar charts in the printed material]
All America Fund:
1997 1998 1999
0% 26% 21% 26%
The All America Fund began operations on May 1, 1996.
Best quater: 22.0% during fourth quarter 1998
Worst quarter: (13.1)% during third quarter 1998
Bond Fund:
1997 1998 1999
0% 8.9% 8.3% -3.5%
The Bond Fund began operations on May 1, 1996.
Best quarter: 4.8% during third quarter 1998
Worst quarter: (1.2)% during first quarter 1999
Money Market Fund:
1998 1999
0% 5.3% 4.9%
The Money Market Fund began operations on May 1, 1997.
Best quarter: 1.4% during fourth quarter 1999
Worst quarter: 1.1% during first quarter 1999
Equity Index Fund:
1999
0% 9.0%
The Equity Index Fund began operations on May 3, 1999.
Best quarter: 13.9% during fourth quarter 1999
Worst quarter: (6.3)% during third quarter 1999
-3-
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Average Annual Total Returns (for periods ended December 31, 1999)
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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. 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*
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<S> <C> <C>
All America Fund ............................................. 26.0% 22.8%*
S&P 500 Index (1) .......................................... 21.0% 26.8%
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Equity Index Fund ............................................ N/A 9.0%
S&P 500 Index (1) .......................................... 21.0% 9.0%
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Bond Fund .................................................... (3.5)% 5.0%
Lehman Brothers Gov't./Corp. Bond Index (2) ................ (2.2)% 6.2%
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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%
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</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
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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>
Equity Index All America Bond Money Market
Fund Fund Fund Fund
----------- ----------- ---- ------------
<S> <C> <C> <C> <C>
Shareholder Fees ................................... none none none none
Annual Fund Operating Expenses
(expenses that are deducted from fund assets)
Management Fees .................................... .13% .50% .45% .20%
Other Expenses ..................................... .50 .35 .48 .82
---- ---- ---- -----
Total Annual Fund Operating Expenses ............... .63% .85% .93% 1.02%
Expense Reimbursement* ............................. (.31) (.01) (.23) (.62)
---- ---- ---- -----
Net Expenses ....................................... .32% .84% .70% .40%
==== ==== ==== =====
</TABLE>
* The Adviser has contractually agreed for 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 the Equity Index Fund, .85%
of net assets for the All America Fund, .70% of net assets for the Bond Fund
and .40% of net assets for 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.
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<PAGE>
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
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.
Comparison With Prior Performance of Similar Funds
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The investment policies, objectives and strategies of the Investment Company's
Equity Index Fund, All America Fund, Bond Fund and Money Market Fund are
substantially identical to those of Mutual of America Investment Corporation's
Equity Index Fund, All America Fund, Bond Fund and Money Market Fund (called the
VP or Variable Products Funds). In addition, the Adviser and Subadvisers for
these Variable Products Funds are the same as for the corresponding Investment
Company Fund, and the portfolio managers are the same.
Shares of the Variable Products Funds 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 Funds, based on information
about the VP Funds that the Adviser has provided, compared to returns for the
Investment Company's Funds for the periods indicated. Past performance of the
Variable Products Funds is not predictive of future performance. Investors
should not consider performance data for the VP Funds as an indication of the
future performance of the Equity Index, All America, Bond and Money Market Funds
offered under this Prospectus.
Average Annual Total Returns of the Funds and the VP Funds
for Periods ended December 31, 1999
<TABLE>
<CAPTION>
Since Inception of
Institutional Fund One Year Five Years Ten Years Institutional Fund (1)
------------------ -------- ---------- --------- ----------------------
<S> <C> <C> <C> <C>
Equity Index ........................... N/A N/A N/A 9.0%
All America ............................ 26.0% N/A N/A 22.8%
Bond ................................... (3.5)% N/A N/A 5.0%
Money Market (4) ....................... 4.9% N/A N/A 5.1%
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VP Fund
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VP Equity Index ........................ 20.6% 28.2% N/A 10.7%
VP All America ......................... 25.8% 26.1% N/A 22.3%
VP Bond (3) ............................ (1.9)% 7.5% 7.6%(3) 5.7%
VP Money Market (4) .................... 5.1% 5.4% 5.2% 5.3%
</TABLE>
-5-
<PAGE>
(1) For comparison purposes, the average annual total return is given for the
VP All America Fund and VP Bond Fund from May 1, 1996, for the VP Money
Market Fund from May 1, 1997, and for the VP Equity Index Fund from May 3,
1999.
(2) The VP All America Fund began operations in its current form on May 2,
1994. Since then, its investment policies, objectives and strategies have
been substantially identical to those of the All America Fund. VP All
America Fund's average annual total return for the period May 2, 1994
through December 31, 1999 was 29.1%.
(3) The current portfolio manager of the VP Bond Fund, who has been the
portfolio manager of the Bond Fund since its inception, became the VP Bond
Fund's portfolio manager in February 1991.
(4) For the 7-day period ended December 28, 1999, the Investment Company's
Money Market Fund had a current yield of 5.89% and an effective yield of
6.06%, and the Variable Products Money Market Fund had a current yield of
5.63% and an effective yield of 5.79%. The average maturity of the
portfolio holdings was 22 days for Investment Company's Money Market Fund
and 19 days for the Variable Products Money Market Fund.
Results for the Variable Products Funds are different than the results that were
or would have been obtained for the Investment Company Funds.
o Use of the Investment Company Funds' expenses for the VP Funds would
have lowered performance results. The total operating expenses during
the periods shown above for each of the VP All America Fund and VP Bond
Fund were .50% of average net assets, for the VP Money Market Fund were
.25% of average net assets and for the VP Equity Index Fund were .13% of
average net assets (additional expenses were paid at the separate
account level), while the annual total operating expenses (after
reimbursement) of the All America Fund, Bond Fund, Money Market Fund and
Equity Index Fund of the Investment Company were .84%, .70%, .40% and
.32%, respectively, of average net assets.
o The VP All America Fund, from May 1994 until June 1995, had a Subadviser
for approximately 10% of the Fund's assets currently managed by the
Adviser.
o At year end 1999, VP Equity Index Fund had net assets of $583 million,
VP All America Fund had net assets of $886 million, VP Bond Fund had net
assets of $466 million, and VP Money Market Fund had net assets of $74
million.
-6-
<PAGE>
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MANAGEMENT OF THE FUNDS
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The Adviser
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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 $8.1 billion at December 31, 1999, including $2.7 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 were applicable during 1999, are:
o Equity Index Fund -- .125%
o All America Fund -- .50%
o Bond Fund -- .45%
o Money Market Fund -- .20%
Subadvisers for a Portion of the All America Fund
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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, 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 December 31, 1999, Alger
Management had assets under management of approximately $17.4 billion.
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 December 31, 1999, Oak Associates had assets
under management of approximately $21.3 billion.
-7-
<PAGE>
Portfolio Managers
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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 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. He has almost 30 years of experience in selecting
securities for and managing equity portfolios.
David D. Alger and Seilai Khoo are primarily responsible for the day-to-day
management of the Alger Management portion of the Fund. Mr. Alger, President and
Chief Executive Officer of Alger Management, has been employed by 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
Alger Management. Ms. Khoo has been employed by Alger Management since 1989, as
a senior research analyst until 1995 and as a Senior Vice President and
portfolio manager since 1995.
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.
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>
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DETAILS ABOUT HOW OUR FUNDS INVEST AND RELATED RISKS
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Investment Objectives and Strategies
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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 (directly or through an affiliate) currently
intends to maintain an investment in the Fund so that the Fund's assets are at
least $25 million at any time.
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.
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Standard & Poor's(R) (S&P(R)) does not sponsor, endorse, sell or promote the
Equity Index Fund or All America Fund. Standard & Poor's, S&P and the S&P 500
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 and All America
Fund and makes no representation as to the advisability of investing in the
Funds.
-9-
<PAGE>
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 invested $50
million in the All America Fund when the Fund began operations. Mutual of
America (directly or through an affiliate) currently intends to maintain an
investment in the Fund so that the Fund's assets are at least $25 million at any
time.
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.
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.
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, at least 65% of the assets
in the Fred Alger portfolio 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, updated quarterly. During defensive periods, Fred Alger may not
achieve the investment objective for its portion of the All America
Fund.
Fred Alger 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 for the Fred Alger portion of the Fund then determines the individual
stocks that are appropriate for purchase. Fred Alger 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.
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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.
Active trading of the Active Assets, if it occurs, will result in higher
transaction costs and may increase the realized (taxable) capital gains for the
Fund.
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 may invest 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 approximately 1% of its net
assets invested in zero coupon securities, 19% of its assets in U.S.
Treasury Securities and 6% of its net assets 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,
due to ratings downgrades subsequent to purchase by the Fund.
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.
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<PAGE>
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, 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.
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 cap 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.
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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.
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 The market for debt securities may be subject to significant
volatility, and volatility has generally increased in recent years.
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Specific Investments or Strategies, and Related Risks
- --------------------------------------------------------------------------------
This section provides additional information about certain of the principal
investment strategies used by the Funds and additional investment strategies the
Funds may use from time to time.
Options and Futures Contracts
Investment Strategies. All of the Funds 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 be traded on
securities or commodities exchanges located in the United States.
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.
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.
Zero Coupon Securities and Discount Notes
The Bond Fund, as well as 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, the U.S. Government or 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.
Risks From Zero Coupon Securities and Discount Notes. 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.
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<PAGE>
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.
American Depository Receipts ("ADRS")
ADRs are dollar-denominated receipts that U.S. banks generally issue. An ADR
represents the deposit with the bank of a security of a foreign issuer. ADRs are
publicly traded on exchanges or are traded over-the-counter in the United
States. An ADR has currency risk, because its value is based on the value of the
security issued by a foreign issuer. The All America Fund intends to invest a
small percentage of its total assets in ADRs.
ADRs are subject to many of the same risks as foreign securities, such as
possible:
o unavailablity of financial information,
o changes in currency or exchange rates, and
o difficulty by the Adviser or a Subadviser in assessing economic or
political trends in a foreign country.
Mortgage-Backed Securities
The Bond Fund, as well as the All America Fund to the extent it invests 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.
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<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 can 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.
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.
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<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. 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
8:00 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:
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.:
$ to the Equity Fund $ to the All America Fund
$ to the Bond Fund $ to the Money Market Fund
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 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.
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, the redemption proceeds usually will be transmitted on a trade
date-plus-one basis (the next Valuation Day). Wire transfers of
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<PAGE>
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.
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 8:00 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.
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.
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<PAGE>
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 foward 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.
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.
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<PAGE>
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.
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.
-20-
<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. 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>
Year Ended December 31,
----------------------
1999 1998 1997 1996(d)
---- ---- ---- -------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Year/Period ......................... $ 15.08 $ 12.65 $ 10.98 $ 10.00
--------- --------- --------- ---------
Income From Investment Operations:
Net Investment Income ........................................... .09 .07 .08 .06
Net Gains or Losses on Securities (realized and unrealized) ..... 3.81 2.57 2.77 .98
--------- --------- --------- ---------
Total From Investment Operations .............................. 3.90 2.64 2.85 1.04
--------- --------- --------- ---------
Less Dividend Distributions:
From net investment income ...................................... (.08) (.08) (.08) (.06)
From capital gains .............................................. (2.43) (.13) (1.10) --
--------- --------- --------- ---------
Total Distributions ........................................... (2.51) (.21) (1.18) (.06)
--------- --------- --------- ---------
Net Asset Value, End of Year/Period ............................... $ 16.47 $ 15.08 $ 12.65 $ 10.98
========= ========= ========= =========
Total Return(a).................................................... 26.0% 21.0% 26.0% 10.4%
Ratios/Supplemental Data
Net Assets, End of Year/Period ($ millions) ....................... $ 72.4 $ 70.8 $ 56.7 $ 55.5
Ratio of Net Investment Income to Average Net Assets .............. .51% .55% .59% .95%(b)
Ratio of Expenses to Average Net Assets ........................... .85% .84% .84% .87%(b)
Ratio of Expenses to Average Net Assets after Expense Reimbursement .84% .82% .81% .85%(b)
Portfolio Turnover Rate(c) ........................................ 34.89% 41.25% 35.96% 9.33%
</TABLE>
- ----------
(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.
(d) Commenced operations May 1, 1996.
-21-
<PAGE>
Equity Index Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
December 31, 1999(d)
----------------------
<S> <C>
Net Asset Value, Beginning of Period ....................................... $10.00
------
Income From Investment Operations:
Net Investment Income .................................................... .08
Net Gains or Losses on Securities (realized and unrealized) .............. .82
------
Total From Investment Operations ....................................... .90
------
Less Dividend Distributions:
From net investment income ............................................... (.08)
From capital gains ....................................................... (.02)
------
Total Distributions .................................................... (.10)
------
Net Asset Value, End of Year/Period ........................................ $10.80
------
Total Return(a)............................................................. 9.0%
Ratios/Supplemental Data
Net Assets, End of Year/Period ($ millions) ................................ $29.5
Ratio of Net Investment Income to Average Net Assets ....................... 1.22%(b)
Ratio of Expenses to Average Net Assets .................................... .63%(b)
Ratio of Expenses to Average Net Assets after Expense Reimbursement ........ .32%(b)
Portfolio Turnover Rate(c) ................................................. 5.67%
</TABLE>
Bond Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------
1999 1998 1997 1996(e)
---- ---- ---- ------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Year/Period ......................... $10.41 $10.41 $10.13 $10.01
------ ------ ------ ------
Income From Investment Operations:
Net Investment Income ........................................... .60 .61 .59 .38
Net Gains or Losses on Securities (realized and unrealized) ..... (.87) .24 .29 .12
------ ------ ------ ------
Total From Investment Operations .............................. (.27) .85 .88 .50
------ ------ ------ ------
Less Dividend Distributions:
From net investment income ...................................... (.60) (.62) (.59) (.38)
From capital gains .............................................. (.09) (.23) (.01) --
------ ------ ------ ------
Total Distributions ........................................... (.69) (.85) (.60) (.38)
------ ------ ------ ------
Net Asset Value, End of Year/Period ............................... $ 9.45 $10.41 $10.41 $10.13
====== ====== ====== ======
Total Return(a).................................................... (3.5)% 8.3% 8.9% 5.0%
Ratios/Supplemental Data
Net Assets, End of Year/Period ($ millions) ....................... $28.7 $25.2 $22.1 $21.0
Ratio of Net Investment Income to Average Net Assets .............. 6.23% 5.84% 5.69% 5.63%(b)
Ratio of Expenses to Average Net Assets ........................... .93% .97% 1.00% .90%(b)
Ratio of Expenses to Average Net Assets After Expense Reimbursement .70% .70% .70% .70%(b)
Portfolio Turnover Rate(c) ........................................ 10.07% 33.32% 56.18% 17.85%
</TABLE>
- ----------
(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.
(d) Commenced operations May 3, 1999.
(e) Commenced operations May 1, 1996.
-22-
<PAGE>
Money Market Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------
1999 1998 1997(d)
------ ------ ------
<S> <C> <C> <C>
Net Asset Value, Beginning of Year/Period ....................................... $10.23 $10.15 $10.00
------ ------ ------
Income From Investment Operations:
Net Investment Income ......................................................... .50 .52 .35
Net Gains or Losses on Securities (realized and unrealized) ................... -- -- --
------ ------ ------
Total From Investment Operations ............................................ .50 .52 .35
------ ------ ------
Less: Dividend Distributions From Net Investment Income ......................... (.34) (.44) (.20)
------ ------ ------
Total Distributions ......................................................... (.34) (.44) (.20)
------ ------ ------
Net Asset Value, End of Year/Period ............................................. $10.39 $10.23 $10.15
====== ====== ======
Total Return(a).................................................................. 4.9% 5.3% 3.5%
Ratios/Supplemental Data
Net Assets, End of Year/Period ($ millions) ..................................... $30.2 $ 6.5 $ 7.5
Ratio of Net Investment Income to Average Net Assets ............................ 4.86% 5.14% 5.17%(b)
Ratio of Expenses to Average Net Assets ......................................... 1.02% 3.21% 2.47%(b)
Ratio of Expenses to Average Net Assets after Expense Reimbursement ............. .40% .40% .40%(b)
Portfolio Turnover Rate(c) ...................................................... N/A N/A N/A
</TABLE>
- --------------
(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.
(d) Commenced operations May 1, 1997.
N/A Not Applicable
-23-
<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 the Investment Company.
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 May 1, 2000
<PAGE>
MUTUAL OF AMERICA
INSTITUTIONAL
FUNDS, INC.
EQUITY INDEX FUND
ALL AMERICA 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 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. Initial Investment in
Fund Portfolios
By wire transfer only
Total Investment $ (minimum $25,000 unless waived by
-------------------- Institutional Fund)
All America $ Bond $
------------------------------ ---------------------------
Money Market $ Equity Index $
------------------------------ -------------------
- --------------------------
4. Telephone Redemption
and Exchange Requests
Check one box
|_| Redemption and exchange requests may be made by telephone by Authorized
Persons (Item 7 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.
- --------------------------
5. 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 6 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.
<PAGE>
- --------------------------
6. 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.
-----------------------------------------------
Account name and No.
-----------------------------------------------------------
- --------------------------
7. 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
- ----------------------------------- ----------------------------------------
- ----------------------------------- ----------------------------------------
- ----------------------------------- ----------------------------------------
- --------------------------
8. Confirms, 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.
- ---------------------------
9. 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.
Upon Applicant's request, the Institutional Fund will provide (1) a form of
Certificate of Resolutions and Incumbency, for use by a corporation or other
entity that has a Board of Directors or Board of Trustees, or (2) a form of
Certificate of Authority and Authorized Persons, for use by a trust, partnership
or other unincorporated entity.
<PAGE>
- ---------------------------
10. Financial Information
Give approximate
amounts
Annual Income/Revenue: $ Current securities Portfolio: $
------------ --------------
Surplus (or Net Worth/Net Assets): $ Total Assets: $
---------- -----------------
- ---------------------------
11. 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 Professionals |_| Bank Trust Department
|_| Investment Adviser |_| Investment Committee of Board
|_| Other:
------------------------------------
Does Applicant understand the investment risks, including market risks, or
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:
-----------------------
- ---------------------------
12. Investment Objectives
Are the investment objectives of the Funds of Mutual of America Institutional
Funds, Inc. consistent with Applicant's current investment objectives? Check
appropriate box(es) below.
All America Fund - total return by capital growth and, to a
lesser extent, current income: |_| Yes |_| No
Equity Index Fund - investment results that correspond to the performance
of common stocks included in the S&P 500 Index: |_| Yes |_| No
Bond Fund - current income with preservation of capital a secondary
objective: |_| Yes |_| No
Money Market Fund - current income to extent consistent with liquidity,
investment quality and stability of capital: |_| Yes |_| No
Do you expect to redeem All America Fund, Equity Index Fund or Bond Fund shares
within 30 to 60 days from the date of initial investment to meet
short-term liquidity needs? |_| Yes |_| No
- ---------------------------
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> <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:
--------------------------------------------
Signature
Date:
- ----------------------------------------------- ---------
Print Name and Title of Authorized Person
By:
--------------------------------------------
Signature [If required]
Date:
- ------------------------------------------------------------ ---------
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 or Applicant's Adviser
|_| Financial or other information provided by Applicant or its Adviser
- --------------------------------------------------------------------------------
SIGNATURE OF CONSULTANT, AS REGISTERED REPRESENTATIVE OF SECURITIES CORP.
- --------------------------------------------------------------------------------
PRINT NAME DATE
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SIGNATURE OF REGISTERED PRINCIPAL OF SECURITIES CORP.
- --------------------------------------------------------------------------------
PRINT NAME DATE>
- --------------------------------------------------------------------------------
