-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SwckMVGoqXehhMNdVN6u4ydVBmF/caba/9NOni2wQmAw/Eo4HHHxI8rhDWcZs+H/ 3gohQPM2l13dIt3XxxzNuw== 0000950130-96-001418.txt : 19960501 0000950130-96-001418.hdr.sgml : 19960501 ACCESSION NUMBER: 0000950130-96-001418 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 11 FILED AS OF DATE: 19960430 EFFECTIVENESS DATE: 19960430 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MUTUAL OF AMERICA INVESTMENT CORP CENTRAL INDEX KEY: 0000795259 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1933 Act SEC FILE NUMBER: 033-06486 FILM NUMBER: 96553310 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-05084 FILM NUMBER: 96553311 BUSINESS ADDRESS: STREET 1: 320 PARK AVENUE STREET 2: 320 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10022 BUSINESS PHONE: (212)224-1600 MAIL ADDRESS: STREET 1: 320 PARK AVENUE STREET 2: 320 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10022 485BPOS 1 MOA INVESTMENT CORP., PEA #12 AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 30, 1996 REGISTRATION NO. 33-6486 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-1A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X] PRE-EFFECTIVE AMENDMENT NO. [_] POST-EFFECTIVE AMENDMENT NO. 12 [X] AND/OR REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [X] AMENDMENT NO. 15 --------------- MUTUAL OF AMERICA INVESTMENT CORPORATION (EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER) 320 PARK AVENUE NEW YORK, NEW YORK 10022 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICE INCLUDING ZIP CODE) DEPOSITOR'S TELEPHONE NUMBER, INCLUDING AREA CODE (212) 224-1600 DOLORES J. MORRISSEY MUTUAL OF AMERICA INVESTMENT CORPORATION 320 PARK AVENUE NEW YORK, NEW YORK 10022 (NAME AND ADDRESS OF AGENT FOR SERVICE) COPIES TO: STANLEY M. LENKOWICZ, ESQ. ROBERT S. SCHNEIDER, ESQ. SENIOR VICE PRESIDENT & DEPUTY GENERAL COUNSEL GRAHAM & JAMES LLP MUTUAL OF AMERICA LIFE INSURANCE 885 THIRD AVENUE COMPANY NEW YORK, NEW YORK 10022 320 PARK AVENUE NEW YORK, NEW YORK 10022 APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING: As soon as practicable after the effective date of the Registration Statement. --------------- IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE (CHECK APPROPRIATE SPACE) immediately upon filing pursuant to paragraph (b) --- X --- on May 1, 1996 pursuant to paragraph (b) 60 days after filing pursuant to paragraph (a) --- on (date) pursuant to paragraph (a) of Rule 485 --- THE REGISTRANT HAS REGISTERED AN INDEFINITE NUMBER OF SHARES UNDER THE SECURITIES ACT OF 1933 PURSUANT TO RULE 24f-2 UNDER THE INVESTMENT COMPANY ACT OF 1940. THE NOTICE REQUIRED BY SUCH RULE FOR THE REGISTRANT'S MOST RECENT FISCAL YEAR WAS FILED ON FEBRUARY 29, 1996. - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- MUTUAL OF AMERICA INVESTMENT CORPORATION Principal Office Located at: 320 Park Avenue, New York, New York 10022 Mutual of America Investment Corporation (the "Investment Company") is a mutual fund, currently issuing eight series of common stock representing, respectively, the Money Market Fund, the All America Fund, the Equity Index Fund, the Bond Fund, the Short-Term Bond Fund, the Mid-Term Bond Fund, the Composite Fund, and the Aggressive Equity Fund. This Prospectus describes in detail the investment objectives and policies of the eight Funds and concisely sets forth the information about the Investment Company that you ought to know before investing in the Investment Company. Investments in the Money Market Fund (and in the other Funds of the Investment Company) are neither insured nor guaranteed by the U.S. Government. A Statement of Additional Information dated May 1, 1996 has been filed with the Securities and Exchange Commission. This Statement of Additional Information is incorporated by reference into this Prospectus and is available at no charge by writing Mutual of America Investment Corporation at the above address. - ------------------------------------------------------------------------------- THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. - ------------------------------------------------------------------------------- This Prospectus should be read carefully and retained for further reference. ------------------- Prospectus dated May 1, 1996 ------------------- FINANCIAL HIGHLIGHTS Income and capital changes per share for a Fund share outstanding throughout each of the ten years during the period ended December 31, 1995, or since the Fund's inception date if in existence less than ten years, and other supplementary data with respect to the Funds are as follows. The information with respect to each of the years in the four year period ended December 31, 1995 has been audited by the Fund's independent auditors, Arthur Andersen LLP. The financial statements of the Investment Company, along with the report of Arthur Andersen LLP thereon, are set forth in the Statement of Additional Information. Each of the six prior years in the period ended December 31, 1991 were audited by the Fund's previous auditors, and per share information for these years is presented from the perspective of the Separate Accounts, which are the holders of the shares of the Investment Company. Effective 1992, the per share information is presented from the perspective of the Funds. Information presented for periods less than a full year has been annualized except where otherwise noted. INFORMATION FOR THE ALL AMERICA FUND REFLECTS THE RESULTS OF THAT FUND PRIOR TO A CHANGE IN ITS INVESTMENT OBJECTIVE AND POLICIES AND THE ADDITION OF SUBADVISERS. SUCH CHANGES WERE EFFECTIVE ON MAY 1, 1994, AT WHICH DATE THE FUND WAS RENAMED THE ALL AMERICA FUND. Further information about the performance of the Funds, including management's discussion of performance, is contained in the Investment Company's annual report to shareholders, which may be obtained without charge by request to the Investment Company.
MONEY MARKET FUND -------------------------------------------------------------------- YEAR ENDED DECEMBER 31, -------------------------------------------------------------------- 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- NET ASSET VALUE, BEGINNING OF PERIOD.... $1.19 $1.17 $1.17 $1.18 $1.23 $1.23 $1.22 $1.25 $1.18 $1.12 ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Income From Investment Operations Net Investment Income.. .07 .03 .04 .04 .12 .10 .12 .08 .07 .06 Net Gains or Losses on Securities (both realized and unrealized)........... -- .02 -- -- (.05) -- -- -- -- -- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total From Investment Operations.......... .07 .05 .04 .04 .07 .10 .12 .08 .07 .06 ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Less Distributions Dividends (from net investment income).... (.08) (.03) (.04) (.05) (.12) (.10) (.11) (.11) -- -- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Total Distributions.. (.08) (.03) (.04) (.05) (.12) (.10) (.11) (.11) -- -- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- NET ASSET VALUE, END OF PERIOD................. $1.18 $1.19 $1.17 $1.17 $1.18 $1.23 $1.23 $1.22 $1.25 $1.18 ===== ===== ===== ===== ===== ===== ===== ===== ===== ===== Total Return(c)......... 5.8% 4.1% 2.9% 3.3% 4.4% 6.8% 2.6% 5.9% 5.7% 4.8% Net Assets, End of Period ($ millions).... $ 73 $ 81 $ 38 $ 39 $ 43 $ 89 $ 81 $ 6 $ 3 $ 2 Ratio of Expenses to Average Net Assets..... .25% .25% .26% .40% .40% .40% .40% .40% .40% .40% Ratio of Net Income to Average Net Assets..... 5.66% 4.15% 2.90% 3.33% 5.73% 7.79% 8.90% 6.85% 5.99% 5.90% Portfolio Turnover Rate(a)................ N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
2 FINANCIAL HIGHLIGHTS
ALL AMERICA FUND -------------------------------------------------------------------------------- YEAR ENDED DECEMBER 31, -------------------------------------------------------------------------------- 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 ----- ------ ------ ------ ------ ------ ------ ----- ------ ------ NET ASSET VALUE, BEGIN- NING OF PERIOD......... $1.61 $ 1.80 $ 1.79 $ 1.93 $ 1.70 $ 1.81 $ 1.69 $1.82 $ 1.67 $ 1.49 ----- ------ ------ ------ ------ ------ ------ ----- ------ ------ Income From Investment Operations Net Investment Income.. .03 .04 .04 .04 .18 .08 .28 .06 .02 .01 Net Gains or Losses on Securities (both realized and unrealized)........... .56 (.01) .18 .03 .23 (.11) .14 .10 .13 .17 ----- ------ ------ ------ ------ ------ ------ ----- ------ ------ Total From Investment Operations.......... .59 .03 .22 .07 .41 (.03) .42 .16 .15 .18 ----- ------ ------ ------ ------ ------ ------ ----- ------ ------ Less Distributions Dividends (from net investment income).... (.03) (.04) (.04) (.04) (.05) (.06) (.05) (.09) -- -- Distributions (from capital gains)........ (.04) (.18) (.17) (.17) (.13) (.02) (.25) (.20) -- -- ----- ------ ------ ------ ------ ------ ------ ----- ------ ------ Total Distributions.. (.07) (.22) (.21) (.21) (.18) (.08) (.30) (.29) -- -- ----- ------ ------ ------ ------ ------ ------ ----- ------ ------ NET ASSET VALUE, END OF PERIOD................. $2.13 $ 1.61 $ 1.80 $ 1.79 $ 1.93 $ 1.70 $ 1.81 $1.69 $ 1.82 $ 1.67 ===== ====== ====== ====== ====== ====== ====== ===== ====== ====== Total Return(c)......... 36.6% 3.7%* 12.0% 3.2% 22.6% (3.8)% 24.1% 8.7% 8.3% 11.3% Net Assets, End of Pe- riod ($ millions)...... $ 533 $ 375 $ 424 $ 398 $ 434 $ 377 $ 437 $ 40 $ 43 $ 29 Ratio of Expenses to Average Net Assets..... .50% .50% .50% .50% .50% .50% .50% .50% .50% .51% Ratio of Net Income to Average Net Assets..... 1.57% 2.11% 1.92% 2.02% 2.49% 3.33% 2.54% 3.07% 1.97% 2.03% Portfolio Turnover Rate(a)................ 33.63% 129.80% 93.86% 129.40% 158.35% 108.75% 117.60% 56.94% 150.74% 141.40% - ------- *Total Return for 1994 reflects performance from May 2, 1994 and is not annualized. The Total Return for calendar year 1994 was 5.6%. BOND FUND -------------------------------------------------------------------------------- YEAR ENDED DECEMBER 31, -------------------------------------------------------------------------------- 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 ----- ------ ------ ------ ------ ------ ------ ----- ------ ------ NET ASSET VALUE, BEGIN- NING OF PERIOD......... $1.27 $ 1.41 $ 1.41 $ 1.41 $ 1.33 $ 1.37 $ 1.27 $1.40 $ 1.42 $ 1.28 ----- ------ ------ ------ ------ ------ ------ ----- ------ ------ Income From Investment Operations Net Investment Income.. .09 .09 .09 .09 .13 .09 -- .09 .07 .06 Net Gains or Losses on Securities (both realized and unrealized)........... .16 (.14) .09 .03 .08 (.02) .16 (.01) (.09) .08 ----- ------ ------ ------ ------ ------ ------ ----- ------ ------ Total From Investment Operations.......... .25 (.05) .18 .12 .21 .07 .16 .08 (.02) .14 ----- ------ ------ ------ ------ ------ ------ ----- ------ ------ Less Distributions Dividends (from net investment income).... (.09) (.09) (.09) (.09) (.11) (.11) (.06) (.21) -- -- Distributions (from capital gains)........ -- -- (.09) (.03) (.02) -- -- -- -- -- ----- ------ ------ ------ ------ ------ ------ ----- ------ ------ Total Distributions.. (.09) (.09) (.18) (.12) (.13) (.11) (.06) (.21) -- -- ----- ------ ------ ------ ------ ------ ------ ----- ------ ------ NET ASSET VALUE, END OF PERIOD................. $1.43 $ 1.27 $ 1.41 $ 1.41 $ 1.41 $ 1.33 $ 1.37 $1.27 $ 1.40 $ 1.42 ===== ====== ====== ====== ====== ====== ====== ===== ====== ====== Total Return(c)......... 19.4% (3.2%) 13.1% 8.6% 14.0% 3.5% 11.1% 6.2% (1.9)% 10.5% Net Assets, End of Pe- riod ($ millions)...... $ 311 $ 249 $ 263 $ 233 $ 187 $ 163 $ 109 $ 5 $ 4 $ 3 Ratio of Expenses to Average Net Assets..... .50% .50% .50% .50% .50% .50% .50% .50% .50% .51% Ratio of Net Income to Average Net Assets..... 6.64% 6.32% 6.30% 6.93% 7.59% 8.57% 8.55% 8.25% 7.97% 8.26% Portfolio Turnover Rate(a)................ 41.93% 51.14% 103.16% 112.40% 95.00% 129.02% 47.70% 75.61% 47.41% 63.36%
3 FINANCIAL HIGHLIGHTS
EQUITY INDEX SHORT-TERM MID-TERM AGGRESSIVE FUND BOND FUND BOND FUND EQUITY FUND -------------------- -------------------- --------------------- -------------- YEARS ENDED YEARS ENDED YEARS ENDED YEARS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, -------------------- -------------------- --------------------- -------------- 1995 1994 1993(1) 1995 1994 1993(1) 1995 1994 1993(1) 1995 1994(2) ----- ----- ------ ----- ----- ------ ----- ----- ------ ------ ------ NET ASSET VALUE, BEGINNING OF PERIOD.... $1.02 $1.04 $ 1.00 $1.00 $1.02 $ 1.00 $ .91 $ .99 $ 1.00 $ 1.05 $ 1.00 ----- ----- ------ ----- ----- ------ ----- ----- ------ ------ ------ Income From Investment Operations Net Investment Income.. .02 .03 .02 .06 .04 .02 .06 .03 .04 .01 .01 Net Gains or Losses on Securities (both realized and unrealized)........... .36 (.01) .04 .02 (.02) .02 0.9 (.07) .04 .39 .05 ----- ----- ------ ----- ----- ------ ----- ----- ------ ------ ------ Total From Investment Operations.......... .38 .02 .06 .08 .02 .04 .15 (.04) .08 .40 .06 ----- ----- ------ ----- ----- ------ ----- ----- ------ ------ ------ Less Distributions Dividends (from net investment income).... (.03) (.03) (.02) (.06) (.04) (.02) (.06) (.04) (.04) (.01) (.01) Distributions (from capital gains)........ (.02) (.01) -- -- -- -- -- -- (.05) (0.9) -- ----- ----- ------ ----- ----- ------ ----- ----- ------ ------ ------ Total Distributions.. (.05) (.04) (.02) (.06) (.04) (.02) (.06) (.04) (.09) (.10) (.01) ----- ----- ------ ----- ----- ------ ----- ----- ------ ------ ------ NET ASSET VALUE, END OF PERIOD................. $1.35 $1.02 $ 1.04 $1.02 $1.00 $ 1.02 $1.00 $0.91 $ 0.99 $ 1.35 $ 1.05 ===== ===== ====== ===== ===== ====== ===== ===== ====== ====== ====== Total Return(c)......... 36.6% 1.5% (b)6.2% 7.7% 1.4% (b)4.6% 16.3% (3.7)% (b)7.3% 38.2% (b)6.0% Net Assets, End of Period ($ millions).... $ 43 $ 26 $ 27 $ 3 $ 2 $ 3 $ 24 $ 24 $ 19 $ 59 $ 27 Ratio of Expenses to Average Net Assets..... .13% .13% .11% .50% .48% .45% .50% .50% .45% .85% .56% Ratio of Net Income to Average Net Assets..... 2.50% 2.67% 2.43% 4.65% 3.51% 3.09% 5.73% 4.71% 4.13% .65% .7% Portfolio Turnover Rate(a)................ 13.99% 6.59% 1.44% 16.47% 0.00% 122.37% 73.72% 7.52% 162.03% 116.52% 60.86%
- ------- (1) The Fund commenced operations on February 5, 1993. (2) The Fund commenced operations on May 2, 1994.
COMPOSITE FUND -------------------------------------------------------------------------- YEAR ENDED DECEMBER 31, -------------------------------------------------------------------------- 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 ----- ------ ------ ------ ------ ------ ----- ----- ------ ----- NET ASSET VALUE, BEGINNING OF PERIOD.... $1.57 $ 1.71 $ 1.59 $ 1.61 $ 1.53 $ 1.63 $1.46 $1.60 $ 1.51 $1.35 ----- ------ ------ ------ ------ ------ ----- ----- ------ ----- Income From Investment Operations Net Investment Income.. .08 .05 .05 .06 .19 .14 .11 .08 .05 .03 Net Gains or Losses on Securities (both realized and unrealized)........... .27 (.10) .22 .03 .09 (.09) .17 .05 .04 .13 ----- ------ ------ ------ ------ ------ ----- ----- ------ ----- Total From Investment Operations.......... .35 (.05) .27 .09 .28 .05 .28 .13 .09 .16 ----- ------ ------ ------ ------ ------ ----- ----- ------ ----- Less Distributions Dividends (from net investment income).... (.08) (.07) (.05) (.06) (.07) (.10) (.08) (.17) -- -- Distributions (from capital gains)........ (.03) (.02) (.10) (.05) (.13) (.05) (.03) (.10) -- -- ----- ------ ------ ------ ------ ------ ----- ----- ------ ----- Total Distributions.. (.11) (.09) (.15) (.11) (.20) (.15) (.11) (.27) -- -- ----- ------ ------ ------ ------ ------ ----- ----- ------ ----- NET ASSET VALUE, END OF PERIOD................. $1.81 $ 1.57 $ 1.71 $ 1.59 $ 1.61 $ 1.53 $1.63 $1.46 $ 1.60 $1.51 ===== ====== ====== ====== ====== ====== ===== ===== ====== ===== Total Return(c)......... 21.9% 3.0% 16.9% 5.9% 16.4% 1.5% 17.2% 7.9% 5.2% 11.4% Net Assets, End of Period ($ millions).... $ 276 $ 233 $ 228 $ 138 $ 111 $ 79 $ 67 $ 51 $ 45 $ 30 Ratio of Expenses to Average Net Assets..... .50% .50% .50% .50% .50% .50% .50% .50% .50% .51% Ratio of Net Income to Average Net Assets..... 4.30% 3.88% 3.48% 4.01% 4.75% 6.20% 5.48% 5.94% 5.10% 5.35% Portfolio Turnover Rate(a)................ 76.84% 113.86% 100.76% 107.69% 134.91% 105.06% 87.32% 50.88% 124.04% 98.74%
- ------- (a) Portfolio turnover rate excludes all U.S. Government and short-term securities. (b) Not annualized. (c) Total Return information does not reflect separate account charges under contracts that allocate premiums or contributions to the Funds. Inclusion of separate account charges would reduce Total Return figures. 4 TABLE OF CONTENTS
PAGE ---- Financial Highlights.................................................... 2 General Description of the Investment Company........................... 5 Money Market Fund Yield Information..................................... 5 Investment Objectives and Policies of the Funds......................... 5 Investment Advisory Arrangements........................................ 13 The Funds' Expenses..................................................... 15 Portfolio Transactions.................................................. 15 Purchase of Shares...................................................... 15 Redemption of Shares.................................................... 15 Dividends, Distributions and Taxes...................................... 15 Additional Information.................................................. 16
NO DEALER, SALESMAN OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS, OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS, IN CONNECTION WITH THE OFFER CONTAINED IN THIS PROSPECTUS, AND, IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE INVESTMENT COMPANY OR MUTUAL OF AMERICA CAPITAL MANAGEMENT CORPORATION. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY STATE IN WHICH SUCH OFFERING MAY NOT LAWFULLY BE MADE. GENERAL DESCRIPTION OF THE INVESTMENT COMPANY The Investment Company was formed as a Maryland corporation on February 21, 1986. It is a diversified, open-end management company as such terms are defined in the Investment Company Act of 1940 (the "1940 Act"). Its investment adviser is Mutual of America Capital Management Corporation (the "Adviser"). As a "series" type of mutual fund, the Investment Company issues separate classes (or series) of stock, currently consisting of the Money Market Fund, the All America Fund, the Equity Index Fund, the Bond Fund, the Short-Term Bond Fund, the Mid-Term Bond Fund, the Composite Fund, and the Aggressive Equity Fund. The Investment Company's assets and liabilities are split into these Funds ("Funds"). Additional Funds may be established. Shares of the Funds are presently sold only to separate accounts of Mutual of America Life Insurance Company ("Mutual of America Life") and The American Life Insurance Company of New York ("American Life"), an indirect, wholly- owned subsidiary of Mutual of America Life, as a funding medium for variable annuity contracts and variable life insurance contracts issued by the companies. Mutual of America Life and American Life, together, hereinafter are referred to as the "Insurance Companies" and each, an "Insurance Company". The separate accounts of the Insurance Companies, together, hereinafter are referred to as the "Separate Accounts" and each, a "Separate Account". The variable annuity and variable life insurance contracts issued by the Insurance Companies, together, hereinafter are referred to as the "Contracts" and each, a "Contract". Each of the Insurance Companies has its principal offices at 320 Park Avenue, New York 10022. The terms "shareholder" and "shareholders" in this Prospectus refer to the Insurance Companies. Mutual of America Life and American Life, through the Separate Accounts, own all of the Investment Company's shares. MONEY MARKET FUND YIELD INFORMATION Set forth below is the current yield information for the Money Market Fund for the seven-day period ended December 26, 1995, computed to include and exclude realized and unrealized gains and losses. Yields may fluctuate from the amounts shown. Annualized Yield: Including gains and losses.................................... 5.69% Excluding gains and losses.................................... 5.69% Average maturity of portfolio at end of period.................. 23 days
INVESTMENT OBJECTIVES AND POLICIES OF THE FUNDS INVESTMENT OBJECTIVES Each Fund of the Investment Company has a different investment objective which it pursues through separate investment policies as described below. The differences in objectives and policies among the Funds can be expected to affect the return 5 of each Fund and the degree of market and financial risk to which each Fund is subject. As used in the following discussion, "market risk" refers to the volatility of the reaction of the price of the security to changes in conditions in the securities markets in general and, with particular reference to debt securities, changes in the overall level of interest rates; "financial risk" refers to the ability of an issuer of a debt security to pay principal and interest on that security and to the earning stability and overall financial soundness of an issuer of an equity security; and "current income volatility" refers to the degree and rapidity with which changes in the overall level of interest rates become reflected in the level of current income of a Fund. The investment objectives of each Fund may not be changed without the approval of the holders of a majority of the outstanding shares of each Fund affected. There can be no assurance that the objectives of any of the Funds will be met. Investments in the Money Market Fund (and in the other Funds of the Investment Company) are neither insured nor guaranteed by the U.S. Government. The investment objectives and policies of each Fund are discussed below. THE MONEY MARKET FUND The investment objective of the Money Market Fund is the realization of high current income to the extent consistent with the maintenance of liquidity, investment quality and stability of capital. The Fund will invest only in money market instruments and other short-term debt securities. Specifically, the Money Market Fund will invest only in the following kinds of money market instruments, payable in United States dollars: (1) securities issued or guaranteed by the United States Government or one of its agencies or instrumentalities ("government securities"); (2) negotiable certificates of deposit, bank time deposits, bankers' acceptances and other short-term debt obligations of domestic banks and foreign branches of domestic banks and U.S. branches of foreign banks (see "Investment Objectives and Policies of the Funds--Other Portfolio Strategies--Foreign Securities"), which at the time of their most recent annual financial statements show assets in excess of $1 billion; (3) certificates of deposit, time deposits and other short-term debt obligations of domestic savings and loan associations, which at the time of their most recent annual financial statements show assets in excess of $1 billion; (4) repurchase agreements covering government securities, certificates of deposit, commercial paper or bankers' acceptances; (5) commercial paper; (6) variable amount floating rate notes; and (7) debt securities issued by a corporation. These instruments are more fully described in the Statement of Additional Information. For purposes of the Money Market Fund's investment policy only, "money market instruments and other short-term debt securities" shall mean securities having a remaining maturity of up to 13 months (25 months in the case of government securities). The dollar-weighted average maturity of the securities held by the Money Market Fund will not exceed 90 days. The Money Market Fund may also enter into transactions in options, futures contracts and options on futures, contracts on United States Treasury securities and Eurodollar deposits. Such transactions and instruments are more fully described below and in the Statement of Additional Information. All of the securities held by the Money Market Fund will have received (or be of comparable quality to securities which have received), at the time of the purchase, a rating in one of the two highest categories by any two nationally recognized statistical rating agencies and at least 95% of the securities held by the Money Market Fund will have received (or be of comparable quality to securities which have received), at the time of purchase, the highest rating by any two such rating agencies. (The Board of Directors of the Investment Company must approve or ratify the purchase of any security (other than any government security) which has received no rating or which has been rated by only one rating agency.) Securities which are subsequently downgraded below the two highest categories will be disposed of as soon as practicable absent a finding by the Board of Directors that this would not be in the best interests of the Fund. The Money Market Fund will not invest more than 5% of its total assets in securities of, or subject to puts from, any one issuer (other than government securities and repurchase agreements fully collateralized by government securities) provided that (x) the Fund may invest up to 10% of its total assets in securities issued or guaranteed by a single issuer with respect to which the Fund has an unconditional put and (y) with respect to 25% of its total assets the Fund may, with respect to securities meeting the highest investment criteria, exceed the 5% limit for up to three business days. The Money Market Fund should be subject to relatively little market or financial risk but a relatively high level of current income volatility. THE ALL AMERICA FUND The investment objective for approximately 60% of the assets of the All America Fund (the "Indexed Assets") is to provide investment results that to the extent practical correspond to the price and yield performance of publicly traded common stocks in the aggregate, as represented by the Standard & Poor's Composite Index of 500 Stocks (the "S&P 500 Index"). The Indexed Assets will be invested in the same manner as the Equity Index Fund. See "The Equity Index Fund" below. 6 The investment objective for the remaining approximately 40% of the assets (the "Active Assets") is 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 securities that may include common stocks, securities convertible into common stocks, bonds and money market instruments. The Active Assets will be invested by three subadvisers (each a "Subadviser", and together the "Subadvisers"), under a subadvisory agreement (each a "Subadvisory Agreement") between the Adviser and each of the Subadvisers, and the Adviser. The Adviser will allocate the Active Assets to maintain, to the extent practicable under current market conditions, approximately equal amounts with the Subadvisers and the Adviser. The Subadvisers are Palley- Needelman Asset Management, Inc. ("Palley-Needelman"), Oak Associates, Ltd. and Fred Alger Management, Inc. ("Alger Management"). See "Investment Advisory Arrangements--The Subadvisers". Palley-Needelman will invest its portion of Active Assets in stocks that Palley-Needelman considers to be of high quality with lower than average price volatility and low price/earning ratios. Companies generally will have below market debt levels, earnings growth of 10% or more, current yield of 3% or more and market capitalization of $500 million or more. No more than 10% of the Palley-Needelman portion may be invested in any one industry and no more than 20% may be invested in American Depositary Receipts ("ADRs"). Oak Associates will invest in mid-sized capitalization stocks that have low current income and the potential for significant growth. Oak Associates monitors 400 stocks and will invest its portion of the Fund in approximately 25 common stocks without regard for market industry weighting. Alger Management will invest in stocks with capitalization generally below $1 billion, which Alger Management considers to be fundamentally sound with the potential for strong growth and for earnings in excess of market expectations. Except during temporary defensive periods, at least 85% of the Alger Management portion will be invested in equity securities. The Adviser generally will invest in stocks that it considers undervalued. Its approach is to identify companies with strong financials, substantial cash flow, conservative accounting, usually low debt-to-equity ratios and average market capitalization generally below $1 billion. Some of the companies whose stocks are purchased by Oak Associates, or by the Adviser for its portion of the Active Assets, may have limited Wall Street coverage and low institutional ownership. Each of the Subadvisers and the Adviser will seek to achieve the investment objective of the Active Assets by investing in such securities that, based on certain fundamental and/or technical standards of selection, it determines offer attractive opportunities for total return through capital appreciation and, to a lesser degree, income. The Investment Company believes that the combination of the Indexed Assets and the Active Assets will provide a reasonable opportunity for the Fund to outperform the S&P 500 Index by providing a diversified portfolio of Active Assets with diversified management and a broad exposure to the market. Assets in the All America Fund will be rebalanced periodically to retain the approximate 60%/40% relationship between Indexed Assets and Active Assets. The Adviser may manage cash allocated to the Active Assets prior to investment in securities by the Subadvisers. THE EQUITY INDEX FUND The investment objective of the Equity Index Fund is to provide investment results that to the extent practical correspond to the price and yield performance of publicly traded common stocks in the aggregate, as represented by the S&P 500 Index. The Equity Index Fund will attempt to duplicate the investment results of the S&P 500 Index, which is composed of 500 selected common stocks, most of which are listed on the New York Stock Exchange. Standard & Poor's Corporation chooses the stocks to be included in the S&P 500 Index solely on a statistical basis. The inclusion of a stock in the S&P 500 Index does not imply an opinion by Standard & Poor's Corporation that the stock is an attractive investment. An investment in the Fund involves risks similar to those of investing in common stocks. The Fund will attempt to be fully invested at all times in the stocks that comprise the S&P 500 Index and at least 80% of the Fund's net assets will be so invested. The weightings of stocks in the S&P 500 Index are based on each stock's relative total market capitalization; that is, its market price per share times the number of shares outstanding. Stocks will be selected for the Fund's portfolio 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 will be managed using a computer program to determine which stocks are to be purchased or sold to replicate the S&P 500 Index to the extent feasible. Initially the Fund contemplates executing all transactions through a single broker. From time to time, administrative adjustments may be made in the Fund's portfolio because of changes in the composition of the S&P 500 Index, but such changes should be infrequent. The Fund believes that the indexing approach described above is an effective method of substantially duplicating percentage changes in the S&P 500 Index. It is a reasonable expectation that there will be a close correlation between the Fund's 7 performance and that of the S&P 500 Index in both rising and falling markets. The Fund will attempt to achieve a correlation between the performance of its portfolio and that of the S&P 500 Index of at least 0.95, without taking into account expenses. A correlation of 1.00 would indicate perfect correlation, which would be achieved when the Fund's net asset value, including the value of its dividend and capital gains distributions, increases or decreases in exact proportion to changes in the S&P 500 Index. The Fund will invest in stock index futures contracts, options on stock indices, options on stock index future contracts, puts and calls to the extent necessary to attempt to achieve this correlation. The Fund's ability to correlate its performance with the S&P 500 Index, however, may be affected by, among other things, changes in securities markets, the manner in which the S&P 500 Index is calculated by Standard & Poor's Corporation and the timing of purchases and redemptions. In the future, the Board of Directors, subject to the approval of shareholders, may select another index if such a standard of comparison is deemed to be more representative of the performance of common stocks in general. The Fund's ability to duplicate the performance of the S&P 500 Index also depends to some extent on the size of the Fund's portfolio and the size of cash flows into and out of the Fund. Investment changes to accommodate these cash flows are made to maintain the similarity of the Fund's portfolio to the S&P 500 Index to the maximum practicable extent. Mutual of America Life invested $25 million in the Fund on February 5, 1993 and will endeavor to maintain a minimum asset balance in the Fund (including its investments and the investments of participants and contractholders) which is at least $25 million at any time, but does not guarantee to do so. As participants and contractholders invest in the Fund through Separate Accounts, over time Mutual of America Life reserves the right to reduce its investment in the Fund consistent with the above Fund target minimum balance. THE BOND FUND, THE SHORT-TERM BOND FUND AND THE MID-TERM BOND FUND The three Bond Funds (the Bond Fund, the Short-Term Bond Fund and the Mid-Term Bond Fund (sometimes collectively referred to as the "Bond Funds" or singularly as "any" or "each" Bond Fund)) will have the same investment objectives as described below, but will seek to achieve those objectives through different policies representing the average maturity of the securities held in their respective portfolios, as follows: The Bond Fund will consist of debt securities with average maturities which will vary according to market conditions and the stage of the interest rate cycle. The Short-Term Bond Fund will consist of debt securities which will produce a portfolio with an average maturity of one to three years. The Mid-Term Bond Fund will consist of debt securities which will produce a portfolio with an average maturity of three to seven years. When interest rates go up, the market value of outstanding debt securities declines and vice versa. In recent years the volatility of the market for debt securities has increased significantly and the market value of longer-term obligations has been subject to wide fluctuations, particularly as contrasted with short-term instruments. The Bond Funds may realize income to the extent such realizations are considered advantageous in light of existing market conditions. The annual rate of portfolio turnover of the Bond Funds is not expected to average in excess of 200%. A high level of portfolio turnover will result in an increase in transaction costs and may adversely affect the tax status of the Investment Company. See "Dividends, Distributions and Taxes." The primary investment objective of the Bond Funds is to provide as high a level of current income over time as is believed to be consistent with prudent investment risk. A secondary objective is preservation of shareholders' capital. The Bond Funds seek to realize these objectives through careful selection and, when appropriate, active trading of bonds and other investments. The assets of the Bond Funds will consist primarily of publicly traded debt securities, such as bonds, notes, debentures and equipment trust certificates. Such securities may carry certain equity features, such as conversion of exchange rights, or warrants for the acquisition of stocks of the same or different issuers, or participations based on revenues, sales or profits. It is contemplated that at least 80% of each Bond Fund's assets will consist of (a) domestic debt securities that have at the time of purchase a rating of at least Baa3 as determined by Moody's Investors Services, Inc. or BBB- as determined by Standard & Poor's Corporation or equivalent ratings of a similar nationally recognized rating service; (b) securities issued or guaranteed by the United States Government or its agencies or instrumentalities; (c) cash or cash equivalents; and (d) the types of money market instruments in which the Money Market Fund may invest. These instruments should be subject to little financial risk, to moderately high levels of market risk and to moderate current income volatility. The remaining assets of the Bond Funds may be invested in (1) other securities that are unrated or rated lower than Baa3 or BBB-, which are sometimes referred to as high yield/high risk securities, (2) Canadian and other foreign securities and (3) securities issued in foreign markets by domestic issuers or their overseas subsidiaries if guaranteed by the parent. Unrated securities or securities 8 rated lower than Baa3 or BBB- may be subject to greater market and financial risk than higher quality securities, and it is not currently contemplated that more than 5% of any Bond Fund's assets will consist of these securities. The instruments described in this paragraph are more fully described in the Statement of Additional Information. The market value of fixed-income debt securities is affected by changes in general market interest rates. If interest rates fall, the market value of fixed-income securities tends to rise; however, if interest rates rise, the value of fixed-income securities tends to fall. This market risk affects all fixed income securities, but lower rated and unrated securities may be subject to a greater market risk than higher rated (lower yield) securities. Lower rated and unrated securities are also generally subject to greater financial risk than higher rated 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. Risk factors related to investments in lower rated and unrated securities are more fully described in the Statement of Additional Information. Each of the Bond Funds generally will not acquire securities of companies in any one industry if, immediately after giving effect to any such acquisition, more than 25% of the value of its total assets would be invested in such industry. A Fund would, however, invest more than 25% (but not more than 75%) of its assets in the electric, gas and/or telephone utility industries whenever it is determined that the spread between the yields on such industry securities and Treasury notes and/or bonds is historically high and that obligations having comparable maturity, yield and quality of issuers in other industries are not available; provided, however, that in no event will any Bond Fund invest more than 75% of the value of its total assets in all those industries. No one "aspect" of the electric, gas or telephone utility industries will be emphasized. Investment in companies in these industries involves the risk of unfavorable action, from an investment viewpoint, by their regulatory authorities. Concentration in any or all of such industries may increase the investment risk as a result of adverse circumstances which could affect all companies in a particular industry simultaneously. In addition, debt securities in electric, gas and telephone industries tend to have longer maturities than those of industrial issuers, and unlike industrial debt issues, do not typically require partial repayment of the principal through a sinking fund during the life of the securities. As a result, electric, gas and telephone issues may show more price volatility in periods of changing interest rates than would industrial issues of like quality. The electric, gas and telephone utility industries are subject to extensive government regulation as to rates and services. The Bond Funds will not directly purchase common stocks. However, a Fund may have up to 10% of the value of its total assets invested in stocks acquired either by conversion of fixed-income securities or by the exercise of warrants attached thereto. The Bond Funds may also enter into transactions in exchange-traded options, futures contracts and options on futures contracts on United States Treasury securities and Government National Mortgage Association ("GNMA") Securities. To be included in any of the Bond Funds, options and futures must be traded on a domestic exchange. THE COMPOSITE FUND The investment objective of the Composite Fund is to achieve as high a total rate of return, through both appreciation of capital and current income, as is consistent with prudent investment risk by means of a diversified portfolio of publicly traded common stocks, publicly traded debt securities and money market instruments. The Fund will seek to achieve long-term growth of its capital and increasing income by investments in common stocks and other equity-type securities and a high level of current income through investments in publicly traded debt securities and money market instruments. It is anticipated that the portion of the assets invested in each type of security will vary, at the Investment Company's discretion, in accordance with economic conditions, the general level of common stock prices, interest rates and other relevant consideration, including the risks associated with each investment medium. No more than 75% of the value of the Fund's assets, however, may be invested in either common stock and other equity-type securities, or in debt securities with a remaining maturity of more than one year. Up to 100% of the Fund's assets may be invested in money market instruments. The equity securities invested in by the Fund will consist of the types of equity securities in which the Active Assets of the All America Fund may be invested. The publicly traded debt securities will consist of the types of securities in which any Bond Fund may invest. The money market instruments will consist of the types of securities in which the Money Market Fund may invest. The Composite Fund may also engage in the same type of transactions in options, futures contracts and options on futures contracts as the Stock, Bond, Short- Term Bond, Mid-Term Bond and Money Market Funds. The Composite Fund will be subject to varying levels of market and financial risk and current income volatility, depending upon the "mix" of instruments in which the Fund is from time to time invested. The Composite Fund will not invest in debt securities rated below investment grade. Securities which are subsequently downgraded may continue to be held and will be sold only if, in the judgment of the Investment Adviser, it is advantageous to do so. 9 THE AGGRESSIVE EQUITY FUND The Aggressive Equity Fund will be divided by the Adviser into two segments so as to utilize two investment styles. The investment objective for approximately 50% of the assets of the Fund (the "Aggressive Growth Portfolio") is to achieve capital appreciation by investing in companies believed to possess above-average growth potential. Growth can be in the areas of earnings or gross sales, measured in either dollars or in unit volume. Growth potential is often sought in smaller, less well-known companies in new and emerging areas of the economy, but may also be found in larger companies in mature or declining industries that have been revitalized and hold a strong industry or market position. The Aggressive Growth Portfolio also may make investments based on prospective economic or political changes and may invest in special situations such as corporate restructurings. The Aggressive Growth Portfolio will invest in a relatively small number of stocks, usually between 25 and 35 at any time, issued by leading companies in the strong sectors of the economy. The investment objective for the other approximately 50% of the assets of the Fund (the "Aggressive Value Portfolio") is to achieve capital appreciation by investing in companies believed to possess valuable assets or whose securities are undervalued in the marketplace in relation to factors such as the company's assets, earnings, or growth potential. Such companies will generally have one or more of the following attributes: (1) valuable fixed assets, such as complex plant and equipment that has a high replacement cost, real estate with a current value substantially in excess of book value or large reserves of exploitable natural resources; or (2) valuable consumer or commercial franchises, such as well recognized trademarks or product names or potentially valuable transportation routes. The Aggressive Value Portfolio generally invests in small to medium capitalization securities which have low prices in relation to cash flow, profits, sales, book value and real net asset value. The Fund invests primarily in stocks, but it also may purchase convertible securities and debt obligations that may produce capital appreciation. Securities that meet the Fund's criteria may not be popular during certain market cycles. The Fund can also make substantial temporary investments in investment-grade debt securities when it believes market conditions warrant. INVESTMENT RESTRICTIONS The Investment Company has adopted a number of restrictions and policies relating to the investment of its assets and its activities which are fundamental policies and may not be changed without the approval of the holders of the Investment Company's outstanding voting securities (including a majority of the shares of each Fund). None of the Funds will: (1) with respect to at least 75% of the value of its total assets invest more than 5% of its total assets in the securities of any one issuer (including repurchase agreements with any one bank), other than securities issued or guaranteed by the United States Government or its agencies or instrumentalities (see "The Money Market Fund" for more restrictive policies relating to that fund); (2) with respect to at least 75% of the value of its total assets, purchase more than 10% of the outstanding voting securities of an issuer, except that such restriction shall not apply to securities issued or guaranteed by the United States Government or its agencies or instrumentalities; (3) make an investment in an industry if that investment would make the Fund's holding in that industry exceed 25% of the Fund's total assets except for each of the Bond Funds, which may invest up to 75% of its total assets in the electric, gas and/or telephone utilities industries (other than investments by the Money Market Fund in obligations issued or guaranteed by the United States Government, its agencies or instrumentalities, certificates of deposit, or securities issued or guaranteed by domestic branches of domestic banks and savings and loan associations); or (4) invest more than 10% of its total assets in repurchase agreements or time deposits maturing in more than seven days or in portfolio securities not readily marketable. Investors are referred to the Statement of Additional Information for a complete description of such restrictions and policies. OTHER PORTFOLIO STRATEGIES Lending of Securities A Fund may lend its securities (but not in excess of 30% of its total assets) to brokers, dealers and financial institutions and receive as collateral cash, securities issued or guaranteed by the United States Government or its agencies or instrumentalities, or letters of credit of certain banks selected by the investment adviser, which at all times while the loan is outstanding will be maintained in amounts equal to at least 100% of the current market value of the loaned securities. The Fund will continue to receive interest or dividends on the securities lent, and in addition will receive a portion of the income generated by the short-term investment of cash received as collateral, or, alternatively, where securities or a letter of credit are used as collateral, a lending fee paid directly to the Fund by the borrower of the securities. Such loans will be terminable by the Fund at any time and will not be made to affiliates of the Fund. The Fund will have the right to regain record ownership of loaned securities in order to exercise beneficial rights, such as voting rights or subscription rights. The Fund may pay reasonable fees to persons unaffiliated with the Fund for services or for arranging such loans. Loans of securities will be made only to firms that the Investment Adviser deems creditworthy. As with an extension of credit, however, there 10 are risks of delay in recovery and even loss of rights in the collateral, should the borrower of securities default, become the subject of bankruptcy proceedings or otherwise be unable to fulfill its obligations or fail financially. Repurchase Agreements Repurchase Agreements are more fully described in the Statement of Additional Information. If a seller of a repurchase agreement defaults and does not repurchase the security subject to the agreement, the Fund would look to the collateral security underlying the sellers' repurchase agreement, including the securities subject to the repurchase agreement, for satisfaction of the seller's obligation to the Fund; in such event the Fund might incur disposition costs in liquidating the collateral and might suffer a loss if the value of the collateral declines. In addition, there is a risk that, if the issuer of the repurchase agreement becomes involved in bankruptcy proceedings, the Fund might be delayed or prevented from liquidating the underlying security or otherwise obtaining it for its own purposes. Options and Futures As noted, the Funds may enter into transactions in options, futures contracts and options on futures contracts on the types of instruments identified above. Such transactions will be used for hedging purposes only, and not for speculation, and could include (1) the selling of call option contracts on portfolio securities (covered calls), and the buying of call option contracts on such securities to close out a position acquired through the sale of such options; (2) the buying of put option contracts on securities owned by a Fund, and the selling of put option contracts on securities owned by a Fund to close out a position acquired through the purchase of such options; (3) purchases and sales of futures contracts, and purchases of options on futures contracts, on fixed-income securities; and (4) purchases and sales of futures contracts, and purchases of options on futures contracts, on indexes of securities. If a hedging transaction in any such instrument is successful, a Fund's losses on portfolio securities, or the increased cost of securities to be acquired, should be offset, in whole or part, by corresponding gains on the hedging position. The Funds will only enter into transactions in options, futures and options on futures which are traded on securities or commodities exchanges located in the United States. A risk in all such transactions is a possible lack of liquidity, which could make it difficult or impossible to close out existing positions and realize gains or limit losses. The liquidity of a secondary market in futures contracts or options on futures contracts may be adversely affected by "daily price fluctuation limits," established by the exchanges on which such instruments are traded, which limit the amount of fluctuation in the price of a contract during a single trading day. Once the limit in a particular contract has been reached, no further trading in such contract may occur beyond such limit, thus preventing the liquidation of positions, and requiring traders to make additional variation margin payments. Market liquidity in options, futures contracts or options on futures contracts may also be adversely affected by trading halts, suspensions, exchange or clearing house equipment failures, government intervention, insolvency of a brokerage firm or clearing house or other disruptions of normal trading activity. The Funds are also subject to the risk of imperfect correlation between securities held in their portfolios and the security or securities underlying options, futures contracts or options on futures contracts traded. In the case of options, futures contracts or options on futures based on an index of securities, a Fund's portfolio will not duplicate the composition of the index and, in the case of options, futures contracts and options on futures contracts on fixed income securities, the portfolio securities being hedged may not be the same as the securities underlying such instruments. Consequently, the Funds bear the risk that the price of the portfolio securities being hedged will not move in the same amount or direction as the underlying index or obligation. A Fund may sell futures contracts on fixed-income securities in anticipation of a rise in interest rates, which would cause a decline in the value of fixed-income securities held in the Fund's portfolio. Similarly, a Fund may sell stock index futures contracts in anticipation of a general market wide decline which would reduce the value of its portfolio of stocks. In either case, if the expected decrease in the value of portfolio securities occurs, the reduction in net asset value may be offset, in whole or in part, by corresponding gains on the futures position. Conversely, where 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 should be offset, in whole or in part, by gains on the futures position. A Fund may also, instead of purchasing or selling futures contracts, purchase call or put options on futures contracts in order to protect against declines in the value of portfolio securities or against increases in the cost of securities to be acquired. Purchases of options on futures contracts may present less risk in hedging a portfolio than the purchase and sale of the underlying futures contracts, since the potential loss is limited to the amount of the premium paid for the option, plus related transaction costs. As in the case of purchases and sales of futures contracts, a Fund may be able to offset declines in the value of portfolio securities, or increases in the cost of securities acquired, through gains realized on its purchases of options on futures. 11 The Funds may also purchase put options on securities or stock indexes for the same types of hedging purposes. The purchase of a put option on a security or stock index permits a Fund to protect against declines in the value of the underlying security or securities in a manner similar to the sale of futures contracts. The maximum risk assumed by a Fund in purchasing an option is the amount of the premium plus related transaction costs, although this entire amount may be lost. In addition, the Funds may write call options on portfolio securities or on stock indexes for the purpose of increasing their returns and/or to protect the value of their portfolios. In particular, where a Fund writes an option which expires unexercised or is closed out by the Fund at a profit, it will retain the premium paid for the option, less related transaction costs, which will increase its gross income and will offset in part the reduced value of a portfolio security in connection with which the option may have been written. In contrast, however, if the price of the security underlying the option moves adversely to the Fund's position, the option may be exercised and the Fund will be required to sell the security at a disadvantageous price, resulting in losses which may be only partially offset by the amount of the premium. A call option on a security written by a Fund will be covered through ownership of the security underlying the option or through ownership of an absolute and immediate right to acquire such security upon conversion or exchange of other securities held in its portfolio. The Funds' hedging transactions and options on futures present certain other risk factors which are described in the Statement of Additional Information. Foreign Securities and ADRs In addition to investing in domestic securities, the Funds may also invest in securities of foreign issuers (including such securities traded outside the U.S.). None of the Funds will, however, trade in foreign exchange or invest in securities of foreign issuers, if at the time of acquisition more than 20% of its total assets, taken at market value at the time of investment, would be invested in such securities. Because investments in foreign securities, particularly those of non-governmental issuers, involve considerations which are not ordinarily associated with investing in domestic issuers, the Investment Company will consider these special factors before investing in foreign securities. These considerations include changes in currency rates, currency exchange control regulations, the possibility of expropriation, the unavailability of financial information or the difficulty of interpreting financial information prepared under foreign accounting standards, less liquidity and more volatility in foreign securities markets, the impact of political, social or diplomatic developments and the difficulty of assessing economic trends in foreign countries. If it should become necessary, the Funds could encounter greater difficulties in involving legal processes abroad than would be encountered in the United States. In addition, transaction costs in foreign securities may be higher. The Investment Company will not invest in foreign securities unless, in its opinion, such investments will meet the standard and objectives of a particular Fund. No Fund may concentrate its investments in any particular foreign country except Canada. Foreign issues guaranteed by domestic corporations are considered to be domestic securities. ADRs are dollar-denominated receipts issued generally by domestic banks and representing the deposit with the bank of a security of a foreign issuer. ADRs are publicly traded on exchanges or over-the-counter in the United States. ADRs are not subject to the percentage limitations contained in the preceding paragraph. Mortgage-Backed Securities The Bond Funds may invest in mortgage-backed securities, some of which are also considered to be U.S. Government securities. These securities represent interests in, or are secured by, pools of mortgage loans and provide holders with payments consisting of both interest and principal as the mortgages in the underlying mortgage pools are paid off. Mortgage-backed securities 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 Life Mortgage Corporation ("Freddie Macs") and collateralized mortgage obligations issued by a Government instrumentality or agency ("CMOs"). The timely payment of principal and interest is backed by the full faith and credit of the U.S. Government in the case of Ginnie Maes but not for Fannie Maes, Freddie Macs or CMOs. Unscheduled or early payments on the underlying mortgages may shorten the effective maturities and impact the yield and price of mortgage-backed securities. A decline in interest rates may lead to increased prepayment of the underlying mortgages, and the Funds may have to reinvest proceeds received at lower rates of return. Characteristics of underlying mortgage pools will vary, and it is not possible to predict completely accurately the realized yield or average life of a particular mortgage-backed security because of the principal prepayment feature. Convertible Securities Certain Funds may invest in convertible securities, which normally provide a higher yield than the underlying stock but a lower yield than a fixed-income security without the convertibility feature. The price of the convertible security normally 12 will vary to some degree with changes in the price of the underlying stock, although the higher yield tends to make the convertible security less volatile than the underlying common stock. The price of the convertible security also will vary to some degree inversely with interest rates. INSURANCE LAW RESTRICTIONS In order for shares of the Investment Company's Funds to remain eligible investments for the Separate Accounts, it may be necessary, from time to time, for a Fund to limit its investments in certain types of securities in accordance with the insurance laws or regulations of the various states in which the Contracts are sold. Such laws and restrictions as are currently in effect may limit the Funds' investments in foreign securities and in debt or equity securities of certain issuers. INVESTMENT ADVISORY ARRANGEMENTS THE ADVISER Subject to the direction and control of the Board of Directors of the Investment Company, Mutual of America Capital Management Corporation, 320 Park Avenue, New York, New York 10022 (the "Adviser"), an indirect wholly-owned subsidiary of Mutual of America Life, manages the investment and reinvestment of the assets of each Fund pursuant to the Investment Advisory Agreement (the "Agreement") between the Investment Company and the Adviser. Prior to November 3, 1993, Mutual of America Life was the investment adviser to the Investment Company; Mutual of America Life's obligations under the Agreement were assumed by the Adviser on that date. The Adviser had total assets under management of approximately $7.5 billion at December 31, 1995. The Adviser's duties as investment adviser also include research, making recommendations to the Board of Directors of the Investment Company and placing orders for the purchase and sale of securities (see "The Funds' Expenses"). The Adviser is obligated to provide all of the office space, facilities, equipment, material and personnel necessary to perform its duties under the Agreement. Under the Subadvisory Agreements, the Adviser has delegated its investment advisory responsibilities to the Subadvisers and is responsible for providing management services to the respective Funds. See "The Subadvisers" below. As compensation for its investment advisory services to each of the Funds of the Investment Company, the Adviser will receive a fee calculated as a daily charge at the annual rates of .125% of the value of the net assets in the Equity Index Fund; .25% of the value of the net assets in the Money Market Fund; .50% of the value of the net assets in the All America, Bond, Short-Term Bond, Mid-Term Bond and Composite Funds; and .85% of the value of the net assets in the Aggressive Equity Fund. The Adviser pays the Subadvisers for their investment advisory services. See "The Subadvisers" below. During 1995, the Adviser paid all of the expenses of the Funds other than investment advisory fees, brokerage commissions and portfolio transaction costs. See "The Funds' Expenses." THE SUBADVISERS PALLEY-NEEDELMAN, 800 Newport Center Drive, Suite 450, Newport Beach, California 92660, serves as Subadviser for approximately 10% of the assets allocated to the All America Fund. Palley-Needelman is jointly owned by Roger B. Palley and Chet J. Needelman, both of whom have extensive experience in investment management. It provides investment management services to institutional, corporate and individual clients and other registered investment companies. At December 31, 1995, Palley-Needelman managed approximately $3.4 billion in assets. OAK ASSOCIATES, 3875 Embassy Parkway, Suite 250, Akron, Ohio 44333, serves as Subadviser for approximately 10% of the assets allocated to the All-America Fund. Oak Associates is an Ohio limited liability company that prior to 1996 was a sole proprietorship of James Dravo Oelschlager doing business as Oak Associates. It provides investment management services for individual and corporate clients, primarily in connection with retirement plans. At December 31, 1995, Oak Associates had assets under management of approximately $3 billion. ALGER MANAGEMENT, 75 Maiden Lane, New York, New York 10038, serves as Subadviser for approximately 10% of the assets allocated to the All America Fund. Alger Management is a wholly-owned subsidiary of Fred Alger & Company, Incorporated, which is owned by Alger Associates, Inc. Fred M. Alger III and David D. Alger are the majority shareholders of Alger Associates, Inc. and may be deemed to control that company and its subsidiaries. Alger Management provides investment management services to institutional, corporate and individual clients, including other registered management investment companies. At December 31, 1995, Alger Management had approximately $4.8 billion in assets under management. Under the Subadvisory Agreements, each Subadviser, at its own expense and subject to the supervision of the Adviser and the Board of Directors of the Investment Company, renders investment advisory services and assumes the Adviser's duties 13 including research, making recommendations and regular reports to the Adviser and the Board of Directors of the Investment Company and maintenance of certain records. The Subadvisers are also obligated to provide all of the office space, facilities, equipment, material and personnel necessary to perform their duties under the Subadvisory Agreements. The Adviser, and not the Funds, will pay to the Subadvisers an amount calculated daily at the following annual rates: Palley-Needelman, .30%; Oak Associates, .30%; and Alger Management, .45%; of the value of the net assets for which the Subadviser is providing investment advisory services. PORTFOLIO MANAGERS Set forth below is information about the person or persons employed by the Adviser or Subadvisers who are primarily responsible for the day-to-day management of the Funds' investments. No information is given for the Money Market Fund, the Equity Index Fund or the Indexed Assets portion of the All America Fund based on the nature of the investments made by those Funds. ALL AMERICA FUND. The Active Assets of the All America Fund are managed by three Subadvisers and the Adviser: Chet J. Needelman, Chief Executive Officer and Senior Investment Officer of Palley-Needelman, is responsible for the day-to-day management of the Palley- Needelman portion of the Fund. Mr. Needelman has over 27 years of investment experience as a security analyst, research director and portfolio manager. He has managed funds for foundations, corporations, endowments and mutual funds. He is the co-founder of Palley-Needelman Asset Management and its predecessor company, where he held various positions during the last 20 years. All investment decisions for Palley-Needelman Asset Management are made by an investment committee which includes Mr. Needelman, Mr. Palley and three other senior investment professionals. 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 sixty years in the investment business and play a key role in the day-to-day management of the firm's portfolios. David D. Alger, President of Alger Management, is primarily responsible for the day-to-day management of the Alger Management portion of the Fund. He has been employed by Alger Management as Executive Vice President and Director of Research since 1971 and as President since 1995, and he serves as portfolio manager for other mutual funds and investment accounts managed by Alger Management. Frederick M. Gallagher, Senior Vice President of the Adviser since June 1995, is responsible for the investments of the Adviser's portion of the Active Assets of the Fund. Mr. Gallagher's previous position prior to joining the Adviser was as Senior Vice President/Equity Investments at Continental Asset Management Corporation. He has more than 30 years of experience in the investment management business. BOND FUND, SHORT-TERM BOND FUND AND MID-TERM BOND FUND. For each of the Bond Funds, Andrew L. Heiskell, Executive Vice President of the Adviser, has responsibility for setting the fixed income investment strategy and overseeing the Fund's day-to-day operations. He has been the portfolio manager for the Bond Fund since February 1991 and of the Mid-Term and Short-Term Bond Funds since their inception. Mr. Heiskell has over 25 years of investment experience and joined Mutual of America Life in February of 1991, where he was Senior Vice President until January 1, 1994. Prior to joining Mutual of America Life, Mr Heiskell was employed by M. D. Sass, Inc. COMPOSITE FUND. I. Charles Rinaldi, Senior Vice President of the Adviser, is responsible for the day-to-day operations of the equity portion of the Fund, and Andrew L. Heiskell, Executive Vice President of the Adviser, is responsible for the day-to-day operations of the fixed-income portion of the Fund. Mr. Rinaldi joined Mutual of America Life in November of 1989, and Mr. Heiskell joined in February of 1991, where they were Vice President and Senior Vice President, respectively, until January 1, 1994. Prior to joining Mutual of America Life, Mr. Heiskell was employed by M. D. Sass, Inc. and Mr Rinaldi was employed by Glickenhaus & Co. AGGRESSIVE EQUITY FUND. I. Charles Rinaldi, Senior Vice President of the Adviser, has responsibility for setting the investment strategy and overseeing the day-to-day operations of the Aggressive Value Portfolio and the Aggressive Growth Portfolio of the Aggressive Equity Fund. Mr. Rinaldi joined Mutual of America Life in November of 1989, where he was Vice President until January 1, 1994. Prior to joining Mutual of America Life, Mr. Rinaldi was employed by Glickenhaus & Co. 14 THE FUNDS' EXPENSES Each Fund is charged with brokers' commissions, transfer taxes and other fees relating to that Fund's portfolio transactions, pursuant to the Investment Advisory Agreement between the Investment Company and the Adviser. In addition, the Fund is responsible for a number of expenses relating to its operations, including: directors' fees and expenses; the fees and expenses of its independent certified public accountants and of its legal counsel; printing and mailing costs of semi-annual reports to shareholders, Proxy Statements, Prospectuses, Prospectus Supplements and Statements of Additional Information; printing of registration statements; bank transaction charges and custodian's fees; proxy solicitors' fees and expenses, SEC filing fees; any federal, state or local income or other taxes; any membership fees of the Investment Company Institute and similar organizations; fidelity bond and directors' liability insurance premiums; and any extraordinary expenses, such as indemnification payments or damages awarded in litigation or settlements made. The Adviser voluntarily limits the expenses of each Fund, other than for brokers' commissions, transfer taxes and other fees relating to portfolio transactions, to the amount of the investment advisory fee paid by the Fund to the Adviser. The Adviser may discontinue making such reimbursements or payments at any time. PORTFOLIO TRANSACTIONS The Adviser is responsible for decisions to buy and sell securities for the Investment Company as well as for selecting brokers and, where applicable, negotiating the amount of the commission rate paid. In placing orders, it is the policy of the Investment Company to obtain the best price and execution for its contracts. The Adviser and Subadvisers place orders in connection with the purchase and sale of approved investments with various brokers, including their affiliates. As a general matter, the Adviser and each Subadviser select broker-dealers which, in its best judgment, provide prompt and reliable execution at favorable security prices and reasonable commission rates. They may select broker-dealers which provide them with research services and may cause a Fund to pay such broker-dealers commissions which exceed those other broker-dealers may have charged, if in their view the commissions are reasonable in relation to the value of the brokerage and/or research services provided by the broker- dealer. Brokerage arrangements with affiliates of the Adviser or the Sub- Advisers will be in accordance with the 1940 Act and the rules and regulations promulgated thereunder. No transactions may be effected by a Fund with an affiliate of the Adviser or a Sub-Adviser acting as principal for its own account. When purchasing or selling securities trading on the over-the-counter market, the Adviser and Subadvisers will generally execute the transaction with a broker engaged in making a market for such securities. PURCHASE OF SHARES The Investment Company is offering shares in the Funds, without sales charge, at present only for purchase by the Insurance Companies for allocation to the Separate Accounts to fund benefits under the Contracts. The Investment Company continuously offers shares at prices equal to the respective per share net asset value of the Funds. Net asset value is determined in the manner set forth below under "Additional Information--Determination of Net Asset Value." REDEMPTION OF SHARES The Investment Company is required to redeem all full and fractional shares of the Funds for cash. The redemption price is the net asset value per share next determined after the initial receipt of proper notice of redemption. Payment upon redemption of Fund shares is normally made within seven days of receipt of such request (unless redemption is suspended or payment is delayed as permitted in accordance with SEC regulations). DIVIDENDS, DISTRIBUTIONS AND TAXES The Investment Company has in the past elected the special tax treatment afforded a "regulated investment company" under certain provisions of the Internal Revenue Code (the "Code"). The Investment Company believes it has qualified for such treatment and intends to continue to qualify therefor. If it so qualifies, the Investment Company will not be subject to Federal income tax on that part of its ordinary income and net realized capital gains which it distributes to shareholders, thereby avoiding any Federal income tax liability. Such dividend distributions will be declared and reinvested in additional full and fractional shares of the Fund to which they relate, annually, both in the case of net investment income and in the case of net realized short- or long-term capital gains. For dividend purposes, the net investment income of each Fund will consist of dividends received and interest accrued by such Fund, plus or minus any amortized discount or premium, less the estimated expenses of such Fund. To qualify for 15 treatment as a regulated investment company, the Investment Company must, among other things, derive in each taxable year at least 90% of its gross income from dividends, interest, gains from the sale or other disposition of stock or securities, including foreign securities, and other income derived with respect to the business of investing in stock or securities. In addition, the Investment Company must derive less than 30% of its gross income in each taxable year from the disposition of options, futures and forward contracts or financial investments and foreign currencies, as well as stocks and securities, in each case held for less than three months. For purposes of these tests, gross income is determined without regard to losses from the sale or other disposition of stock or securities. Since the Investment Company has more than one Fund, each Fund will be treated as a separate corporation for Federal income tax purposes. Therefore, the investments and results of each Fund must satisfy the foregoing requirements independently. Although the Investment Company intends to operate so that it will have no Federal income tax liability, if any such liability is nevertheless incurred, the investment performance of the Investment Company will be adversely affected. The Investment Company intends to distribute all net realized long- or short- term capital gains, if any, to the shareholders of the Fund or Funds to which such gains are attributable. Realized capital gains and losses of each Fund are computed separately for the purpose of determining capital gain distributions. The net capital gain of one Fund will not be reduced by any net capital losses incurred by the other Funds. Each Fund which has a net capital gain will be entitled to distribute the full amount of that capital gain as a capital gain distribution. Each Fund which has a net capital loss will be entitled to a carryover of that loss which it can apply against its capital gains in future years. The tax treatment of the Insurance Companies and the Separate Accounts and the tax implications of an investment in any Contract are described in the prospectus or brochure for the Contract. ADDITIONAL INFORMATION DETERMINATION OF NET ASSET VALUE The net asset value of the shares of each Fund (i.e., the sum of the value of the securities held by that Fund plus any cash or other assets including interest and dividends accrued minus all liabilities including accrued expenses) is determined once daily by the Adviser immediately after the declaration of dividends, if any, and is determined as of the time of the close of trading on the New York Stock Exchange on each day during which such Exchange is open for trading, with the exception of the Friday following Thanksgiving and, for 1996, Friday July 5 and Thursday December 26, when the Investment Company is closed ("Valuation Day"). The net asset value per share of each Fund for any Valuation Period (i.e., the period beginning on the close of business on the preceding Valuation Day and ending on the close of business on the next Valuation Day) is the amount obtained by multiplying the net asset value per share as of the preceding Valuation Period by that Fund's Change Factor (described below) for the period beginning on the close of business on the preceding Valuation Day and ending on the close of business on the next Valuation Day ("Valuation Period"). The Change Factor for each Fund for any Valuation Period is determined as: (a) the ratio of (i) the net asset value of the Fund at the end of the current Valuation Period, before any amounts are allocated to or withdrawn from the Fund with respect to that Valuation Period, to (ii) the net asset value of the Fund at the end of the preceding Valuation Period, after all allocations and withdrawals were made for that period, divided by (b) 1.00000 plus the component of the annual rate of the Investment Adviser's fee against a Fund's assets for the number of days from the end of the preceding Valuation Period to the end of the current Valuation Period (see "Investment Advisory Arrangements"). The value of the assets held in the Investment Company will be determined in the following manner. Investments for which market quotations are readily available are valued at the market value of such investments (except that, as discussed below, money market securities with a remaining maturity of 60 days or less may be valued at amortized cost). An equity security will be valued at the last sale price for such security on the principal exchange on which such security is traded, or at the last bid price on the principal exchange on which such security is traded if such bid price is of a more recent day than the last sales price. For any equity security not traded on an exchange but traded in the over-the-counter market, the value will be the last bid price available except that securities for which quotations are furnished through the National Association of Securities Dealers Automated Quotation ("NASDAQ") system will be valued at the closing best bid price so furnished on the date of valuation. Debt securities will be valued at a composite fair market value, "evaluated bid," which may be the last sale price, by a valuation service selected by the Adviser. Portfolio securities or assets for which market quotations are not readily available will be valued at fair value as determined in good faith by the Investment Adviser under the direction of the Board of Directors of the Investment Company. Money market securities held by the Investment Company with a remaining maturity of 60 days or less will be valued on an amortized cost basis, which approximates market value; provided, however, that if the value determined under the amortized 16 cost method is materially different from the actual market value, then even such short-term money market securities will be valued at market value. Under the amortized cost method of valuation, the security is initially valued at cost on the date of purchase (or in the case of securities initially purchased with more than 60 days remaining to maturity, the market value on the 61st day prior to maturity), and thereafter the Investment Company assumes a constant proportionate amortization in value until maturity of any discount or premium. For purposes of this method of valuation, the maturity of a variable rate certificate of deposit is deemed to be the next coupon date on which the interest rate is to be adjusted. Portfolio investments underlying options are valued as described above. Stock options written by a Fund are valued at the last sale price or, if there has been no sale that day, at the mean of the last bid and asked price on the principal exchange where the option is traded, as of the close of trading on that exchange. The Fund's net value will be increased or decreased by the difference between the premiums received on writing options and the costs of liquidating such positions measured by the closing price of the option on the exchange where traded. When a Fund writes a call option, the amount of the premium is included in the Fund's assets and an amount is included in its liabilities. The liability thereafter is adjusted to the current market value of the call. For example, if the current market value of the call exceeds the premium received, the excess would be unrealized depreciation; conversely, if the premium exceeds the current market value, such excess would be unrealized appreciation. If a call expires or if the Fund enters into a closing purchase transaction, it realizes a gain (or a loss if the cost of the transaction exceeds the premium received when the call was written) without regard to any unrealized appreciation or depreciation in the underlying securities, and the liability related to such call is extinguished. If a call is exercised, the Fund realizes a gain or loss from the sale of the underlying securities and the proceeds of the sale increased by the premium originally received. A premium paid on the purchase of a put will be deducted from a Fund's assets and an equal amount will be included as an investment and subsequently adjusted to the current market value of the put. For example, if the current market value of the put exceeds the premium paid, the excess would be unrealized appreciation; conversely, if the premium exceeds the current market value, such excess would be unrealized depreciation. Futures contracts, and options thereon, which are traded on commodities exchanges, are valued at their official settlement price as of the close of such commodities exchanges. DESCRIPTION OF THE INVESTMENT COMPANY'S SHARES The authorized capital stock of the Investment Company consists of one billion shares of common stock, $.01 par value. The shares of common stock are divided into eight classes of common stock: Money Market Fund, All America Fund, Equity Index Fund, Bond Fund, Short-Term Bond Fund, Mid-Term Bond Fund, Composite Fund and Aggressive Equity Fund. The Investment Company may establish additional Funds and may allocate its shares either to such new classes or to one or more of the eight existing classes. All shares of common stock, of whatever class, are entitled to one vote, and the votes of all classes are cast on an aggregate basis, except on matters where the interests of the Funds differ. In such a case, the voting is on a Fund-by-Fund basis. Approval or disapproval by the shareholders of one Fund on such a matter would not generally be a prerequisite of approval or disapproval in another Fund. Shareholders in a Fund not affected by a matter generally would not be entitled to vote on that matter. Examples of matters which would require a Fund-by-Fund vote are changes in the fundamental investment policy of a particular Fund and approval of the Investment Advisory Agreement or a Subadvisory Agreement for the Fund. The shares of each Fund, when issued, will be fully paid and nonassessable and will have no preference, preemptive, conversion, exchange or similar rights. Shares do not have cumulative voting rights. Each issued and outstanding share in a Fund is entitled to participate equally in dividends and distributions declared by such Fund and in the net assets of such Fund upon liquidation or dissolution remaining after satisfaction of outstanding liabilities. Accrued liabilities which are not allocable to one or more Funds will generally be allocated among the Funds in proportion to their relative net assets. In the unlikely event that any Fund incurred liabilities in excess of its assets, the other Funds could be liable for such excess. INDEPENDENT AUDITORS Arthur Andersen LLP, Certified Public Accountants, have been selected as the independent auditors of the Investment Company for its fiscal year ending December 31, 1996. Arthur Andersen LLP also acts as the independent auditors of the Insurance Companies. CUSTODIAN The Chase Manhattan Bank, N.A., New York, New York, acts as Custodian of the Investment Company's assets for the Funds. 17 LEGAL COUNSEL Graham & James LLP, New York, New York, is counsel for the Investment Company. Graham & James LLP, is also counsel for Mutual of America Life with respect to its Separate Accounts No.1 and No.2. REPORTS TO SHAREHOLDERS The fiscal year of the Investment Company ends on December 31 of each year. The Investment Company will send to its shareholders at least semiannually reports showing the Funds' portfolio securities and other information. An annual report containing financial statements, audited by independent certified public accountants, will be sent to shareholders each year. INQUIRIES All inquiries pertaining to the Investment Company's shares should be made in writing to Mutual of America Investment Corporation, 320 Park Avenue, New York, New York 10022. ADDITIONAL INFORMATION AVAILABLE This Prospectus does not contain all the information included in the Registration Statement filed with the Securities and Exchange Commission under the Securities Act of 1933 and the Investment Company Act of 1940, with respect to the securities offered hereby, certain portions of which have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The Statement of Additional Information, dated May 1, 1996, which forms a part of the Registration Statement, is incorporated by reference into this Prospectus. The Statement of Additional Information may be obtained without charge as provided on the cover page of this Prospectus. The Registration Statement, including the exhibits filed therewith, may be examined at the office of the Securities and Exchange Commission in Washington, D.C. S & P 500 INDEX The Equity Index Fund and the Indexed Assets of the All America Fund (together, the "Indexed Portfolios") are not sponsored, endorsed, sold or promoted by Standard & Poor's Corporation ("S&P"). S&P makes no representation or warranty, express or implied, to the owners of the Indexed Portfolios or any member of the public regarding the advisability of investing in securities generally or in the Indexed Portfolios particularly or the ability of the S&P 500 Index to track general stock market performance. S&P's only relationship to the Investment Company is the licensing of certain trademarks and trade names of S&P and of the S&P 500 Index which is determined, composed and calculated by S&P without regard to the Indexed. S&P has no obligation to take the needs of the Indexed Portfolios or the owners of the Indexed Portfolios into consideration in determining, composing or calculating the S&P 500 Index. S&P is not responsible for and has not participated in the calculation of the net asset values of the Indexed Portfolios, nor is S&P a distributor of the Indexed Portfolios. S&P has no obligation or liability in connection with the administration, marketing or trading of the Indexed Portfolios. S&P DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE S&P 500 INDEX OR ANY DATA INCLUDED THEREIN. S&P MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE INDEXED PORTFOLIOS, OWNERS OF THE INDEXED PORTFOLIOS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500 INDEX OR ANY DATA INCLUDED THEREIN. S&P MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE S&P 500 INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL S&P HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. 18 MUTUAL OF AMERICA INVESTMENT CORPORATION 320 PARK AVENUE, NEW YORK, NEW YORK 10022 (212) 224-1600 STATEMENT OF ADDITIONAL INFORMATION MAY 1, 1996 This Statement of Additional Information is not a prospectus. It should be read in conjunction with the Mutual of America Investment Corporation Prospectus dated May 1, 1996 and retained for future reference. A copy of the prospectus to which this Statement of Additional Information relates is available at no charge by writing the Mutual of America Investment Corporation at the above address or by calling the telephone number listed above. TABLE OF CONTENTS
PAGE ---- GENERAL INFORMATION AND HISTORY............................................ 2 INVESTMENT POLICIES AND LIMITATIONS........................................ 2 INVESTMENT RESTRICTIONS.................................................... 6 MANAGEMENT OF THE INVESTMENT COMPANY....................................... 7 INVESTMENT ADVISORY ARRANGEMENTS........................................... 8 PORTFOLIO TRANSACTIONS AND BROKERAGE....................................... 10 PURCHASE AND PRICING OF SECURITIES......................................... 11 YIELD AND PERFORMANCE INFORMATION.......................................... 12 DESCRIPTION OF CORPORATE BOND RATINGS...................................... 13 INDEPENDENT AUDITORS....................................................... 14 LEGAL MATTERS.............................................................. 14 CUSTODIAN.................................................................. 15 DISTRIBUTION ARRANGEMENTS.................................................. 15 FINANCIAL STATEMENTS....................................................... 15
GENERAL INFORMATION AND HISTORY THE INVESTMENT COMPANY Mutual of America Investment Corporation (the "Investment Company") is a diversified, open-end management investment company -- a type of company commonly known as a "mutual fund". It is registered as such under the Investment Company Act of 1940 (the "Investment Company Act"). The Investment Company was formed on February 21, 1986 as a Maryland corporation and offers its shares exclusively to separate accounts of Mutual of America Life Insurance Company ("Mutual of America Life") and Mutual of America Life's indirect wholly-owned subsidiary, The American Life Insurance Company of New York ("American Life"). Mutual of America Life and American Life, together, hereinafter are sometimes referred to as the "Insurance Companies" and each, an "Insurance Company". The separate accounts of the Insurance Companies, together, hereinafter are sometimes referred to as the "Separate Accounts" and each, a "Separate Account". As a "series" type of mutual fund, the Investment Company issues separate classes (or series) of stock, each of which represents a separate Fund of investments. There are currently eight Funds: the Money Market Fund, the All America Fund, the Equity Index Fund, the Bond Fund, the Short-Term Bond Fund, the Mid-Term Bond Fund, the Composite Fund, and the Aggressive Equity Fund. As stated in the Investment Company's Prospectus, the Investment Company is a successor to Separate Account No. 2 of Mutual of America Life. The Investment Company's shares are sold only to the Insurance Companies for allocation to the Separate Accounts; thus the Insurance Companies are the only holders of Investment Company shares and control the Investment Company. INVESTMENT POLICIES AND LIMITATIONS The following supplements the information contained in the Investment Company's Prospectus concerning the investment policies and limitations of its Funds. For information relating to the Funds' investment objectives, see "Investment Objectives and Policies of the Funds", and for information about the Adviser and the Subadvisers, see "Investment Advisory Arrangements" in the Prospectus and in this Statement of Additional Information. Fixed-income securities which are rated in the lower rating categories of the nationally recognized rating services (Ba or lower by Moody's and BB or lower by Standard & Poor's), or unrated securities of comparable quality, in which the Bond Funds may to a limited extent invest, are commonly known as "junk bonds." Junk bonds are regarded as being predominantly speculative as to the issuer's ability to make payments of principal and interest. Investment in such securities involves substantial risk. Junk bonds may be issued by less creditworthy companies or by larger, highly leveraged companies, and are frequently issued in corporate restructurings such as mergers and leveraged buy-outs. Such securities are particularly vulnerable to adverse changes in the issuer's industry and in general economic conditions. Junk bonds frequently are junior obligations of their issuers, so that in the event of the issuer's bankruptcy, claims of the holders of junk bonds will be satisfied only after satisfaction of the claims of senior security holders. While the junk bonds in which the Bond Funds may invest normally would not include securities which, at the time of investment, are in default or the issuers of which are in bankruptcy, there can be no assurance that such events would not occur after the Bond Funds purchase a particular security, in which case the Bond Funds may experience losses and incur costs. Junk bonds tend to be more volatile than higher-rated fixed-income securities, so that adverse economic events may have a greater impact on the prices of junk bonds than on higher-rated fixed-income securities. Like higher-rated fixed-income securities, junk bonds generally are purchased and sold through dealers who make a market in such securities for their own accounts. However, there are fewer dealers in the junk bond market, which may be less liquid than the market for higher-rated fixed-income securities, even under normal economic conditions. Also, there may be significant disparities in the prices quoted for junk bonds by various dealers. Adverse economic conditions or investor perceptions (whether or not based on economic fundamentals) may impair the liquidity of this market, and may cause the prices the Bond Funds may receive for any junk bonds to be reduced, or might cause the Bond Funds to experience difficulty in liquidating a portion of its portfolios. Under such conditions, judgment may play a greater role in valuing certain of the Bond Funds' securities than in the case of securities trading in a more liquid market. While the Funds other than the Bond Funds do not purchase junk bonds, the fixed-income securities they purchase may become junk bonds as a result of impairments of the issuer's credit. In such instances, the Fund holding a junk bond will consider disposing of it if, in management's judgment, it is in the Fund's best interest to do so. Reference is made to "Investment Objectives and Policies of the Funds" in the Prospectus for a more complete discussion of the investment objectives and policies of the Investment Company. The following is a description of the money market securities the Money Market Fund may invest in as referred to in the "Investment Objectives and Policies of the Funds" section of the Prospectus. SAI-2 U.S. Government Obligations. Securities issued or guaranteed as to principal and interest by the United States Government include a variety of Treasury securities, which differ only in their interest rates, maturities and times of issuance. Treasury bills have a maturity of one year or less. Treasury notes have maturities of one to seven years and Treasury bonds generally have a maturity of greater than five years. Agencies of the United States Government which issue or guarantee obligations include, among others, Export-Import Bank of the United States, Farmers Home Administration, Federal Housing Administration, Government National Mortgage Association, Student Loan Marketing Association, Maritime Administration, Small Business Administration and the Tennessee Valley Authority. Obligations of instrumentalities of the United States Government include securities issued or guaranteed by, among others, Federal Farm Credit Banks, Federal National Mortgage Association, Federal Home Loan Banks, Federal Home Loan Mortgage Corporation, Federal Intermediate Credit Banks, Federal Land Banks and Banks for Cooperatives. Some of these securities are supported by the full faith and credit of the U.S. Treasury; others are supported by the right of the issuer to borrow from the Treasury, while still others are supported only by the credit of the instrumentality. Shares of the Investment Company are not themselves insured or guaranteed by the United States Government or any agency thereof. Certificates of Deposit. Certificates of deposit are generally short term, interest-bearing negotiable certificates issued by banks or savings and loan associations against funds deposited in the issuing institution. Time Deposits. Time deposits are deposits in a bank or other financial institution for a specified period of time at fixed interest rate of which a negotiable certificate is not received. Bankers' Acceptance. A bankers' acceptance is a draft drawn on a commercial bank by a borrower usually in connection with an international commercial transaction (to finance the import, export, transfer or storage of goods). The borrower is liable for payment as well as the bank, which unconditionally guarantees to pay the draft at its face amount on the maturity date. Most acceptances have maturities of six months or less and are traded in secondary markets prior to maturity. Commercial Paper. Commercial paper refers to short-term, unsecured promissory notes issued by corporations to finance short-term credit needs. Commercial paper is usually sold on a discount basis and has a maturity at the time of issuance not exceeding nine months. Variable Amount Floating Rate Notes. Variable floating rate notes are short- term, unsecured promissory notes issued by corporations to finance short-term credit needs. These are interest-bearing notes on which the interest rate generally fluctuates on a weekly basis. Corporate Debt Securities. Corporate debt securities with a remaining maturity of less than one year tend to become extremely liquid and are traded as money market securities. Such issues with between one and two years remaining to maturity tend to have greater liquidity and considerably less market value fluctuations than longer term issues. REPURCHASE AGREEMENTS Under a repurchase agreement, underlying debt instruments are acquired for a relatively short period (usually not more than one week and never more than one year) subject to an obligation of the seller to repurchase (and the appropriate Fund to resell) the instrument at a fixed price and time, thereby determining the yield during the Fund's holding period. This results in a fixed rate of return insulated from market fluctuation during such period. Accrued interest on the underlying security will not be included for purposes of valuing a Fund's assets. Repurchase agreements have the characteristics of loans by a Fund, and will be fully collateralized (either with physical securities or evidence of book entry transfer to the account of the custodian bank) at all times. During the term of the repurchase agreement the Fund retains the security subject to the repurchase agreement as collateral securing the seller's repurchase obligation, continually monitors the market value of the security subject to the agreement and requires the Fund's seller to deposit with the Fund additional collateral equal to any amount by which the market value of the security subject to the repurchase agreement falls below the resale amount provided under the repurchase agreement. The Funds enter into repurchase agreements only with member banks of the Federal Reserve System, and with primary dealers in U.S. Government securities whose creditworthiness has been reviewed and found satisfactory by the management of the Investment Company, and who have, therefore, been determined to present minimal credit risk. Securities underlying repurchase agreements will be limited to certificates of deposit, commercial paper, bankers' acceptances, or obligations issued or guaranteed by the United States Government or its agencies or instrumentalities, in which the Funds may otherwise invest. SAI-3 If a seller of a repurchase agreement defaults and does not repurchase the security subject to the agreement, the Fund would look to the collateral security underlying the seller's repurchase agreement, including the securities subject to the repurchase agreement, for satisfaction of the seller's obligation to the Fund; in such event the Fund might incur disposition costs in liquidating the collateral and might suffer a loss if the value of the collateral declines. In addition, there is a risk that, if the issuer of the repurchase agreement becomes involved in bankruptcy proceedings, the Fund might be delayed or prevented from liquidating the underlying security or otherwise obtaining it for its own purposes. OPTIONS AND FUTURES As described in the Prospectus, the Funds may enter into transactions in options, futures contracts and options on futures contracts on securities and indexes of securities for hedging purposes only. With respect to options and futures, the Funds may engage in strategies which include buying and selling covered calls and puts and buying and selling call options on groups of securities and on the futures of groups of securities. A call option is a short-term contract (generally having a duration of nine months or less) which gives the purchaser of the option the right to purchase the underlying security at a fixed exercise price at any time prior to the expiration of the option regardless of the market price of the security during the option period. As consideration for the call option, the purchaser pays a Fund (the seller) a premium, which the Fund retains whether or not the option is exercised. The seller of the call option has the obligation, upon the exercise of the option by the purchaser, to sell the underlying security at the exercise price at any time during the option period. The selling of a call option will benefit a Fund if, over the option period, the underlying security declines in value or does not appreciate above the aggregate of the exercise price and the premium. However, the Fund risks an "opportunity loss" of profits if the underlying security appreciates above the aggregate value of the exercise price and the premium. A Fund may close out a position acquired through selling a call option by buying a call option on the same security with the same exercise price and expiration date as the call option which it had previously sold on that security. Depending on the premium for the call option purchased by the Fund, the Fund will realize a profit or loss on the transaction. A put option is a similar short-term contract that gives the purchaser of the option the right to sell the underlying security at a fixed exercise price at any time prior to the expiration of the option regardless of the market price of the security during the option period. As consideration for the put option a Fund (the purchaser) pays the seller a premium, which the seller retains whether or not the option is exercised. The seller of the put option has the obligation, upon the exercise of the option by the purchaser, to purchase the underlying security at the exercise price at any time during the option period. The buying of a covered put contract limits the downside exposure for the investment in the underlying security to the combination of the exercise price less the premium paid. The risk of purchasing a put is that the market price of the underlying stock prevailing on the expiration date may be above the option's exercise price. In that case the option would expire worthless and the entire premium would be lost. A Fund may close out a position acquired through buying a put option by selling a put option on the same security with the same exercise price and expiration date as the put option which it had previously bought on the security. Depending on the premium of the put option sold by the Fund, the Fund will realize a profit or loss on the transaction. In addition to options (both calls and puts) on individual securities, the Funds may purchase and sell options on indexes of securities such as the Standard & Poor's 100 Index, the Standard & Poor's 500 Stock Index and the New York Stock Exchange Composite Index. Options on stock indexes, like options on individuals securities, are traded on national securities exchanges, regulated by the Securities and Exchange Commission such as the Chicago Board Options Exchange, the American Stock Exchange and the New York Stock Exchange. The Funds may sell futures contracts, and purchase options on futures contracts, on the same types of stock indexes. Options, futures contracts and options on futures contracts can be used in anticipation of or in a general market or market sector decline that may adversely affect the market value of a Fund's portfolio of securities. To the extent that a Fund's portfolio of securities changes in value in correlation with a given stock index, hedging transactions in options, futures contracts or options on futures contracts could reduce the risk to the portfolio of a market decline, and, by so doing, provide an alternative to the liquidation of securities' positions in the portfolio with resultant transactions costs. The stock index underlying an option or futures contract assigns weighted values to the stocks involved in the index, and the value of the index fluctuates with changes in the market values of the stocks so included. A futures contract on fixed income securities requires the seller to deliver, and the purchaser to accept delivery of, a stated quantity of a given type of fixed income security for a fixed price at a specified time in the future. A futures contract or option on a stock index provides for the making and acceptance of a cash settlement equal to the change in value of a hypothetical portfolio of stocks between the time the contract is entered into and the time it is liquidated, times a fixed multiplier. Futures contracts may be traded domestically only on exchanges which have been designated as "contract SAI-4 markets" by the Commodity Futures Trading Commission ("CFTC"), such as the Chicago Board of Trade. All transactions are settled through the clearing house of the contract market, which acts as the guarantor of the performance of each party to all futures contracts cleared. An option on a futures contract provides the purchaser with the right, but not the obligation, to enter into a "long" position in the underlying futures contract (in the case of a call option on a futures contract), or a "short" position in the underlying futures contract (in the case of a put option on a futures contract), at a fixed price up to a stated expiration date. Upon exercise of the option by the holder, the contract market clearing house establishes a corresponding short position for the writer of the option, in the case of a call option, or a corresponding long position in the case of a put option. In the event that an option is exercised, the parties are subject to all of the risks associated with the trading of futures contracts, such as payment of margin deposits. Options on futures contracts are traded on the same contract markets as the underlying futures contracts, subject to the performance guarantee of the contract market clearing house. A futures contract or an option on a futures contract may be closed out prior to maturity or expiration by entering into a liquidating transaction in the same instrument on the contract market on which the original position was established. Unlike a Fund purchasing or selling a security, no price is paid or received by a Fund upon the purchase or sale of a futures contract. Initially, a Fund will be required to deposit with the Fund's custodian in the broker's name an amount of cash or U.S. Treasury bills equal to approximately 5% of the contract amount. This amount is known as "initial margin." The nature of initial margin in futures transactions is different from that of margin in security transactions in that futures contract margin does not involve the borrowing of funds by the customer to finance the transactions. Rather, the initial margin is in the nature of a performance bond or good faith deposit on the contract which is returned to a Fund upon termination of the futures contract assuming all contractual obligations have been satisfied. Subsequent payments, called maintenance margin, to and from the broker, will be made on a daily or intraday basis as the price of the underlying instrument or stock index fluctuates making the long and short positions in the futures contract more or less valuable, a process known as mark to market. For example, when a Fund has purchased a stock index futures contract and the price of the underlying stock index has risen, that position will have increased in value and the Fund will receive from the broker a variation margin payment equal to that increase in value. Conversely, where a Fund has purchased a stock index futures contract and the price of the underlying stock index has declined, the position would be less valuable and the Fund would be required to make a variation margin payment to the broker. At any time prior to expiration of the futures contract, a Fund may elect to close the position by taking an opposite position which will operate to terminate the Fund's position in the futures contract. A final determination of margin is then made, additional cash is required to be paid by or released to the Fund, and the Fund realizes a loss or a gain. Transactions in options, futures contracts and options on futures contracts may increase a Fund's transaction costs and portfolio turnover rate and will be initiated only when consistent with a Fund's investment objectives. The trading of options, futures contracts and options on futures contracts also involves risks, in addition to those set forth in the Prospectus. For example, the trading of options on futures contracts entails the risk that changes in the value of the underlying futures contract will not be fully reflected in the value of the option. Further, the ability to profit from the purchase of an option and liquidate the underlying futures contract, is subject to the risks of margin payments and the availability of a liquid market. With respect to options and options on futures contracts, the Funds are subject to the risk of market movements between the time that the option is exercised and the time of performance thereunder. In writing a covered call option on a security or a stock index, the Funds also incur the risk that changes in the value of the instruments used to cover the position will not correlate precisely with changes in the value of the option or underlying the index or instrument. The exchanges on which options, futures contracts and options on futures contracts are traded may impose limitations governing the maximum number of positions on the same side of the market and involving the same underlying instrument which may be held by a single investor, whether acting alone or in concert with others (regardless of whether such contracts are held on the same or different exchanges or held or written in one or more accounts or through one or more brokers). The opening of a futures position and the writing of an option are transactions which involve substantial leverage. As a result, relatively small movements in the price of the contract can result in substantial unrealized gains or losses. Because the Funds will engage in transactions in options, futures contracts and options on futures contracts on securities and indexes of securities for hedging purposes only, any losses incurred in connection with these transactions should, if the hedging strategy is successful, be offset by increases in the value of securities or other assets held by the Funds or decreases in the prices of securities or other assets the Fund intends to acquire. Were a Fund to write options on securities or options on stock indexes for other than hedging purposes, the margin requirements associated with such transactions could expose the Fund to greater risk. SAI-5 Regulations of the CFTC require that a Fund enter into transactions in futures contracts and options on futures contracts for hedging purposes only or otherwise to limit its initial futures margins and related option premiums paid to an amount not to exceed 5% of the value of the Fund's assets, in order to assure that the Fund is not deemed to be a "commodity pool" and the Investment Company is not a "commodity pool operator" as defined in CFTC regulations. INVESTMENT RESTRICTIONS The following investment restrictions are fundamental policies and may not be changed without the approval of a majority of the outstanding voting shares of the affected Fund. None of the Funds will: 1. purchase or sell options or futures except those listed on a domestic exchange; 2. trade in foreign exchange, or invest in securities of foreign issuers if at the time of acquisition more than 20% of its total assets, taken at market value at the time of the investment, would be invested in such securities (see "Foreign Securities"); 3. make an investment in order to exercise control of management over a company (either singly or together with other Funds); 4. underwrite the securities of other companies, including purchasing securities that are restricted under the Securities Act of 1933 ("1933 Act") or rules or regulations issued under the 1933 Act (restricted securities cannot be sold publicly until they are registered under the 1933 Act); 5. make short sales, except when the Fund has, by reason of ownership of other securities, the right to obtain securities of equivalent kind and amount that will be held so long as they are in a short position, 6. purchase commodities or commodity contracts; 7. with respect to at least 75% of the value of its total assets, invest more than 5% of its total assets in the securities of any one issuer (including repurchase agreements with any one bank), other than securities issued or guaranteed by the United States Government or its agencies or instrumentalities (see the caption entitled "The Money Market Fund" in the Prospectus for more restrictive policies relating to that fund); 8. with respect to at least 75% of the value of its total assets, purchase more than 10% of the outstanding voting securities of an issuer, except that such restriction shall not apply to securities issued or guaranteed by the United States Government or its agencies or instrumentalities; 9. issue senior securities except that each Fund may borrow as described in restriction 13 below (the issuance and sale of options and futures not being considered the issuance of senior securities); 10. make an investment in an industry if that investment would make the Fund's holding in that industry exceed 25% of the Fund's total assets, except for the Bond Fund, the Short-Term Bond Fund and the Mid-Term Bond Fund, each of which may invest up to 75% of its total assets in the electric, gas and/or telephone utilities industries, as described under the caption "Investment Objectives and Policies of the Funds--The Bond Fund, the Short-Term Bond Fund and the Mid-Term Bond Fund" in the Prospectus; 11. purchase real estate or mortgages directly. The All America and Aggressive Equity Funds may, however, buy shares of real estate investment trusts listed on stock exchanges or reported on the National Association of Securities Dealers Automated Quotations ("NASDAQ") system, and the Bond Fund, the Short-Term Bond Fund and the Mid-Term Bond Fund may each buy mortgage-backed debt issues; 12. invest more than 5% of its total assets in the securities of any one registered investment company. A Fund may not own more than 3% of an investment company's outstanding voting securities, and total holdings of investment company securities may not exceed 10% of the value of a Fund's total assets; 13. purchase any security on margin or borrow money, except from banks for temporary purposes, or pledge its assets unless to secure such borrowing. The Funds may borrow money from or pledge their assets to banks in order to transfer funds for various purposes, as required, without interfering with the orderly liquidation of securities in their portfolios, but not for leveraging purposes. Such borrowings may not exceed 5% of the value of a fund's total assets at market value; 14. make loans, except loans of portfolio securities (not exceeding 30% of the value of its total assets at market value), or loans through entry into repurchase agreements (the purchase of publicly traded debt obligations not being considered the making of a loan); 15. invest more than 10% of its total assets in repurchase agreements or time deposits maturing in more than seven days or in portfolio securities not readily marketable; or 16. purchase oil and gas interests, except that the Funds may purchase securities of issuers that invest in oil or gas interests. The Money Market Fund will not purchase equity securities, voting securities, local or state government securities, or corporate debt or other than those types of securities specifically mentioned in its investment objectives. SAI-6 If a percentage restriction is adhered to at the time of investment, a later increase or decrease in percentage beyond the specified limit resulting from a change in values of portfolio securities or amount of net assets will not be considered a violation. MANAGEMENT OF THE INVESTMENT COMPANY DIRECTORS AND OFFICERS The Directors of the Investment Company consist of six individuals, four of whom are not "interested persons" of the Investment Company as defined in the Investment Company Act of 1940. The Directors of the Investment Company are responsible for the overall supervision of the operations of the Investment Company and perform the various duties imposed on the directors of investment companies by the Investment Company Act of 1940. The Board of directors elects officers of the Investment Company annually. The Directors and Officers of the Investment Company and their principal employment are as follows:
POSITION HELD WITH PRINCIPAL OCCUPATIONS NAME AND ADDRESS THE INVESTMENT COMPANY DURING PAST 5 YEARS ---------------- ---------------------- ------------------------------------------ Dolores J. Morrissey* Chairman of the Board, Executive Vice President and Assistant to 320 Park Avenue President the President of the Adviser since March New York, NY 10022 and Director 1996; President and Chief Executive Officer of the Adviser from June 1994 to March 1996; Executive Vice President of the Adviser from September 1993 until June, 1994. Executive Vice President of Mutual of America Life until January 1994. Manfred Altstadt* Senior Executive Vice Senior Executive Vice President and Chief 320 Park Avenue President, Chief Financial Financial Officer since September 1993 and New York, NY 10022 Officer, Treasurer Director since May 1993 of the Adviser. and Director Senior Executive Vice President and Chief Financial Officer of Mutual of America Life and American Life since February 1992. Prior thereto, Executive Vice President and Chief Financial Officer of Mutual of America Life. Peter J. Flanagan Director President of The Life Insurance Council of 551 Fifth Avenue New York. New York, NY 10176 George J. Mertz Director Retired; formerly President of National Wayne, NJ 07474 Industries for the Blind. James J. Needham Director Business Consultant to corporations on Bridgehampton, NY financial, planning and regulatory matters during the past five years. Formerly United States Ambassador to Japan, Chairman of the New York Stock Exchange and Commissioner of the Securities and Exchange Commission. Howard J. Nolan Director President and C.P.O., United Way of San P.O. Box 898 Antonio and Bexar County. San Antonio, TX 78293 Stanley M. Lenkowicz Secretary Senior Vice President and Deputy General 320 Park Avenue Counsel of Mutual of America Life since New York, NY 10022 March 1995; Senior Vice President and Associate General Counsel from October 1992 to March 1995. Prior thereto, Vice President and Counsel of Home Life Insurance Company.
SAI-7
POSITION HELD WITH PRINCIPAL OCCUPATIONS NAME AND ADDRESS THE INVESTMENT COMPANY DURING PAST 5 YEARS ---------------- ---------------------- ------------------------------------------ Patrick A. Burns Senior Executive Vice President Senior Executive Vice President and 320 Park Avenue and General Counsel General Counsel since September 1993 of New York, NY 10022 the Adviser. Senior Executive Vice President and General Counsel of Mutual of America Life and American Life since February 1994. Prior thereto, Executive Vice President and General Counsel of Mutual of America Life and American Life.
- ------- * Mr. Altstadt and Ms. Morrissey are "interested persons" within the meaning of the 1940 Act. The officers and directors of the Investment Company own none of its outstanding shares. The Investment Company has no Audit Committee. Pursuant to the terms of the Investment Advisory Agreement described under the caption "Investment Advisory Arrangements", Mutual of America Capital Management Corporation (the "Adviser"), as investment adviser, pays all compensation of officers and employees of the Investment Company as well as the fees of all directors of the Investment Company who are affiliated persons of the Adviser or its affiliates. Set forth below is a table showing compensation paid to the directors during 1995.
PENSION OR TOTAL COMPENSATION FROM AGGREGATE COMPENSATION RETIREMENT BENEFITS ESTIMATED ANNUAL INVESTMENT COMPANY AND FROM ACCRUED AS PART OF BENEFITS UPON OTHER INVESMENT NAME OF DIRECTOR INVESTMENT COMPANY FUND EXPENSES RETIREMENT COMPANIES IN COMPLEX ---------------- ---------------------- ------------------- ---------------- ----------------------- Manfred Altstadt........ None(1) None None None Dolores J. Morrissey.... None(1) None None None(1) Peter J. Flanagan....... $7,250(2) None None $7,250(2) George J. Mentz......... $8,000(2) None None $8,000(2) James J. Needham........ $6,750(2) None None $6,750(2) Howard J. Nolan......... $8,000(2) None None $8,000(2)
- ------- (1) As an employee of the Adviser or its affiliate and as "interested persons" of the Investment Company, Ms. Morrissey and Mr. Altstadt serve as directors of the Investment Company without compensation. (2) Directors who are not "interested persons" of the Investment Company receive from the Investment Company an annual retainer of $10,000 (previously $5,000) and a fee of $750 for each Board or Committee meeting attended. In addition, business travel and accident insurance and life insurance of $75,000 is provided. INVESTMENT ADVISORY ARRANGEMENTS Investment Adviser. The Investment Company's investment adviser is Mutual of America Capital Management Corporation (the "Adviser"), an indirect wholly- owned subsidiary of Mutual of America Life. Prior to November 3, 1993, Mutual of America Life was the investment adviser to the Investment Company, pursuant to an investment advisory agreement between the Investment Company and Mutual of America Life, as investment adviser. Subject at all times to the supervision and approval of the Investment Company's Board of Directors and except as discussed below under "Subadvisers", the Adviser renders investment advisory services with respect to the Money Market, All America, Equity Index, Bond, Short-Term Bond, Mid- Term Bond, Composite and Aggressive Equity Funds in a manner consistent with their stated investment policies, objectives and restrictions. In connection therewith, the Adviser advises the Investment Company as to what investments should be purchased and sold and places orders for all such purchases and sales on behalf of the Investment Company. The Adviser is a registered investment adviser. Advisory Fees. As compensation for its investment advisory services to each of the Funds of the Investment Company, the Adviser will receive a fee calculated as a daily charge at the annual rates of .125% of the value of the net assets in the Equity Index Fund; .25% of the value of the net assets in the Money Market Fund; and .50% of the value of the net assets in the All America, Bond, Short-Term Bond, Mid-Term Bond and Composite Funds; and .85% of the value of the net assets in the Aggressive Equity Fund. The total amount of Investment Advisory fees paid in 1995 by the Investment Company to Mutual of America Life was $5,627,349, of which $211,088 was paid by the Money Market Fund; $2,248,272 was paid by the All America Fund; $1,391,001 was paid by the Bond Fund; $1,272,077 was paid by the Composite Fund; $40,145 was paid by the Equity Index Fund; $14,478 was paid by the Short-Term Bond Fund; $124,503 was paid by the Mid-Term Bond Fund; and $325,785 was paid by the Aggressive Equity Fund. The total amount of Investment Advisory fees paid in 1994 by the Investment Company to the Adviser was $4,810,484, of which $119,452 was paid by the Money Market Fund; SAI-8 $1,933,632 was paid by the All America Fund; $33,192 was paid by the Equity Index Fund; $1,324,071 was paid by the Bond Fund; $11,466 was paid by the Short-Term Bond Fund; $100,231 was paid by the Mid-Term Bond Fund; $1,140,308 was paid by the Composite Fund; and $148,132 was paid by the Aggressive Equity Fund. Advisory Agreement. The Investment Advisory Agreement (the "Advisory Agreement") was last approved by a majority of the non-interested members of the Investment Company's Board of Directors (the "non-interested directors") on February 23, 1993, and by a majority vote of each Fund's shareholders on April 13, 1993. Pursuant to an assumption agreement dated November 3, 1993, the Adviser assumed the rights and duties of Mutual of America Life under the investment advisory agreement. Supplements to the Advisory Agreement to permit the Adviser to enter into subadvisory agreements for the All America Fund and Aggressive Equity Fund were approved by a majority of the non-interested directors on November 16, 1993. The supplement relating to the All America Fund was approved by a majority vote of the Fund's shareholders on April 14, 1994, and the supplement relating to the Aggressive Equity Fund was approved by a vote of the Fund's shareholders on May 1, 1995. The Advisory Agreement terminates automatically in the event of its assignment or, with respect to any Fund, upon 60 days' notice given by the Investment Company's Board of Directors, by the Adviser or by majority vote (as defined in the Investment Company Act of 1940 and the rules thereunder) of the Fund's shares. Otherwise, the Advisory Agreement will continue in force with respect to any Fund so long as its continuance is approved at least annually by (i) a majority of the members of the Investment Company's Board of Directors, or (ii) a majority vote (as defined in the Investment Company Act of 1940 and the rules thereunder) of the Fund's Shareholders; provided that in either event such continuance will also be approved by the vote of a majority of directors who are not interested persons (as defined in the Investment Company Act of 1940). Under the Advisory Agreement, the Adviser agrees to provide investment management services to the Investment Company. Such services include performing investment research and evaluating pertinent economic, statistical and financial data; consultation with the Investment Company's Board of Directors and furnishing to the Investment Company's Board of Directors recommendations with respect to the overall investment plan; implementation of the overall investment plan, including carrying out decisions to acquire or dispose of investments; management of investments; reporting to the Investment Company's Board of Directors on a regular basis on the implementation of the investment plan and the management of investments; maintaining all required records; making arrangements for the safekeeping of assets; and providing office space facilities, equipment, material and personnel necessary to fulfill its obligations. The Adviser is responsible for all expenses incurred in performing the investment advisory services, including compensation of officers and payment of office expenses, trading investment and investment management. Each Fund will pay all other expenses incurred in its operation, including brokers' commissions, transfer taxes and other fees relating to the Fund's portfolio transactions, directors' fees and expenses, fees and expenses of its independent certified public accountants and of its legal counsel, the cost of the printing and mailing of semi-annual reports to shareholders, Proxy Statements, Prospectuses, Prospectus Supplements and Statements of Additional Information, the printing of registration statements, bank transaction charges and custodian's fees, any proxy solicitors' fees and expenses, SEC filing fees, any federal, state or local income or other taxes, any membership fees of the Investment Company Institute and similar organizations, fidelity bond and directors' liability insurance premiums, as well as any extraordinary expenses, such as indemnification payments or damages awarded in litigation or settlements made. The Adviser voluntarily reimburses or pays all of the expenses of the Funds other than advisory fees, brokers' commissions, transfer taxes and other fees relating to the Funds' portfolio transactions and paid all such expenses in 1995. The payment of expenses results in an increase to each Fund's yield or total return. The Adviser may discontinue or modify its policy of paying expenses of the Funds at any time. The Subadvisers. With respect to the management of a portion of the approximately 30% of the assets allocated to the All America Fund (the "Active Assets"), the Adviser engages subadvisory services of three subadvisers-- Palley-Needelman Asset Management, Inc. ("Palley-Needelman"), Oak Associates, Ltd. ("Oak Associates") and Fred Alger Management, Inc. ("Alger Management"), (each a "Subadviser", and together the "Subadvisers"). Each Subadviser is registered as an investment adviser under the Investment Advisers Act of 1940. Each of the Subadvisers, with respect to the assets for which it acts as subadviser, shall, subject to the supervision of the Adviser and the Board of Directors of the Investment Company, render investment advisory services and assume the obligations including research, making recommendations and regular reports to the Board of Directors of the Investment Company, maintenance of records, and providing all the office space, facilities, equipment, material and personnel necessary to fulfill its obligations under the Subadvisory Agreement. SAI-9 Subadvisory Fees. Each of the Subadvisory Agreements provides that the Adviser will pay to the Subadviser an amount calculated daily at the following annual rates: Palley-Needelman, .30%; Oak Associates, .30%; and Alger Management, .45%; of the value of the net assets for which the Subadviser is providing investment advisory services. The Subadvisory Agreement between the Adviser and Mitchell Hutchins Institutional Investors, Inc. ("Mitchell Hutchins") was terminated on June 15, 1995, and the Subadvisory Agreement between the Adviser and C.J. Lawrence/Deutsche Bank Securities Corporation ("C.J. Lawrence") was terminated on September 30, 1995, which provided for subadvisory fees of .50% for Mitchell Hutchins, and .50% of the first $15 million and .30% thereafter for C.J. Lawrence, of the value of the net assets for which subadvisory services were provided. The fees paid to the Subadvisers during 1994 were as follows: Palley- Needelman, $43,165; Oak Associates, $38,206; Alger Management, $105,887; Mitchell Hutchins, $61,950; and C.J. Lawrence, $38,537. The fees paid during 1995 by the Adviser to the Subadvisers totalled $654,396, and the amounts to each Subadviser were Palley-Needelman, $132,923; Oak Associates, $150,434; Alger Management, $236,298; Mitchell Hutchins, $72,875; and C.J. Lawrence, $61,866. Subadvisory Agreements. The Subadvisory Agreements were approved by a majority of the non-interested directors on February 22, 1994. The Subadvisory Agreements with the Subadvisers for the All America Fund were approved by a majority vote of the Fund's shareholders on April 14, 1994 and by a majority vote of the Aggressive Equity Fund's shareholders on May 1, 1994. Each agreement terminates automatically in the event of its assignment or upon 60 days' notice given by the Investment Company's Board of Directors, by the Adviser or by a majority vote (as defined in the Investment Company Act of 1940 and the rules thereunder) of the related Fund's shares. Otherwise, each Subadvisory Agreement will continue in force so long as its continuance is approved at least annually by (i) a majority of the members of the Investment Company's Board of Directors, or (ii) a majority vote (as defined in the Investment Company Act of 1940 and the rules thereunder) of the All America Fund's shareholders; provided that in either event such continuance will also be approved by the vote of a majority of directors who are not interested persons (as defined in the Investment Company Act of 1940). PORTFOLIO TRANSACTIONS AND BROKERAGE The Adviser and each Subadviser are responsible for decisions to buy and sell securities for the Funds of the Investment Company for which they provide services as well as for selecting brokers and, where applicable, negotiating the amount of the commission rate paid. As a general matter, the Adviser and Subadvisers select broker-dealers which, in their best judgment, provide prompt and reliable execution at favorable security prices and reasonable commission rates. The Adviser and Subadvisers may place certain orders with their affiliates, subject to the requirements of the 1940 Act. During 1995, Mutual of America Securities Corporation, an affiliate of the Adviser, acted as an introducing broker for certain securities transactions. In connection with such activities, Mutual of America Securities Corporation received $79,000, which represented approximately 7.9% of the total brokerage commissions paid by the Investment Company and approximately 5.8% of the aggregate dollars of transactions effected by the Investment Company. In addition, Deutsche Bank Securities Corporation and Fred Alger & Co., each an affiliate of a Subadviser, received brokerage commissions during 1995. Deutsche Bank Securities Corporation received $12,000 and Alger & Co. received $61,000, which represented approximately 1.2% and 6.1%, respectively, of the total brokerage commissions paid by the Investment Company and approximately 1.42% and 4.52%, respectively, of the aggregate dollars of transactions effected by the Investment Company. During 1994, Mutual of America Securities Corporation, an affiliate of the Adviser, acted as an introducing broker for certain securities transactions. In connection with such activities, Mutual of America Securities Corporation received $258,600, which represented approximately 15% of the total brokerage commissions paid by the Investment Company and approximately 16% of the aggregate dollars of transactions effected by the Investment Company. In addition, Deutsche Bank Securities Corporation and Fred Alger & Co., each an affiliate of a Subadviser, received brokerage commissions during 1994. Deutsche Bank Securities Corporation received $41,450 and Alger & Co. received $54,590, which represented approximately 2.4% and 3.16%, respectively, of the total brokerage commissions paid by the Investment Company and approximately 1.9% and 1.62%, respectively, of the aggregate dollars of transactions effected by the Investment Company. When purchasing or selling securities trading on the over-the-counter market, the Adviser, and each Subadviser, will generally execute the transaction with a broker engaged in making a market for such securities. Brokerage commissions are negotiated, as there are no standard rates. All brokerage firms provide the service of execution of the order made; some brokerage firms also provide research and statistical data, and research reports on particular SAI-10 companies and industries are customarily provided by brokerage firms to large investors. In negotiating commissions, consideration is given by the Adviser, and each Subadviser, to the use and value of the data and to the quality of execution provided. The valuation of such data may be judged with reference to a particular order or, alternatively, may be judged in terms of its value to the overall management of the Investment Company. The Adviser, and each Subadviser, will place orders with brokers providing useful research and statistical data services if reasonable commissions can be negotiated for the total services furnished even though lower commissions may be available from brokers not providing such services. The Adviser, and each Subadviser, uses these services in connection with all of its investment activities, and some of the data or services obtained in connection with the execution of transactions for the Investment Company may be used in managing other investment accounts. Conversely, data or services obtained in connection with transactions in other accounts may be used by the Adviser, and each Subadviser, in providing investment advice to the Investment Company. To the extent that the Adviser, and each Subadviser, uses research and statistical data services so obtained, its expenses may be reduced and such data has therefore been and is one of the factors considered by the Adviser, and each Subadviser, in determining its fee for investment advisory services. At times, transactions for the Investment Company may be executed together with purchases or sales of the same security for other accounts of the Adviser or a Subadviser. When making concurrent transactions for several accounts, an effort is made to allocate executions fairly among them. Transactions of this type are executed only when the Adviser, or a Subadviser, believes it to be in the best interests of the affected Fund(s), as well as any other accounts involved. However, the possibility exists that concurrent executions may work out to the disadvantage of the Fund(s) involved. PORTFOLIO TURNOVER Each Fund has a different expected rate of portfolio turnover; however, rate of portfolio turnover will not be a limiting factor when management of the Investment Company deems it appropriate to purchase or sell securities for a Fund. The Money Market Fund will seek maximum return on its assets by trading to take advantage of short-term market variations. For this reason, and because of the short-term nature of the money market instruments that will be purchased by the Fund, the Money Market Fund will probably have a high annual rate of portfolio turnover that cannot be predicted (although the Money Market Fund may be deemed not to have a calculable turnover rate for reporting purposes because all or most of its portfolio securities are excluded under the method of calculation of turnover rate prescribed by the Securities and Exchange Commission). Neither the Aggressive Equity Fund nor the Active Assets of the All America Fund will hold all of its investments for an extended period so that the annual rate of portfolio turnover of each is expected to average about 70%. Since the Equity Index Fund and the Indexed Assets of the All America Fund will each attempt to duplicate the investment results of the S&P 500 Index, each is expected to have an annual portfolio turnover rate that is generally lower than 50%. The Bond Funds may realize short-term gains to the extent such realizations are considered advantageous in light of existing market conditions. The annual rate of portfolio turnover of the Bond Funds is not expected to average in excess of 200%. Since the types and proportions of the Composite Fund's assets are expected to change frequently to reflect prevailing market conditions, no annual rate of portfolio turnover can be predicted for the Fund. Within the Fund, it would be expected that the annual rate of portfolio turnover for the equity securities invested in the Fund would be similar to the annual rate of portfolio turnover of the Aggressive Equity Fund and the Active Assets of the All America Fund, and the annual rate of portfolio turnover for the publicly traded debt securities invested in by the Fund would be similar to the annual rate of portfolio turnover of the Bond Funds. PURCHASE AND PRICING OF SECURITIES As stated in the Prospectus, the Investment Company will offer and sell its shares at each Fund's per share net asset value, which will be determined in the manner set forth below. The net asset value of the shares of each Fund (i.e., the sum of the value of the securities held by that Fund plus any cash or other assets including accrued expenses) is determined once daily by the Investment Adviser immediately after the declaration of dividends, if any, and is determined as of the time of the close of trading on the New York Stock Exchange on each day during which such Exchange is open for trading, with the exception of the Friday after Thanksgiving and, for 1996, Friday July 5 when the Investment Company is closed ("Valuation Day"). The net asset value per share of each Fund for any Valuation Period (i.e., the period beginning on the close of business on the preceding Valuation Day and ending on the close of business on the next Valuation Day), is the amount obtained by multiplying the net asset value per share as of SAI-11 the preceding Valuation Period by that Fund's Change Factor (described below) for the period beginning on the close of business on the preceding Valuation Day and ending on the close of business on the next Valuation Day ("Valuation Period"). The Change Factor for each Fund for any Valuation Period is determined as: (a) the ratio of (i) the net asset value of the Fund at the end of the current Valuation Period, before any amounts are allocated to or withdrawn from the Fund with respect to that Valuation Period, to (ii) the net asset value of the Fund at the end of the preceding Valuation Period, after all allocations and withdrawals were made for that period, divided by (b) 1.00000 plus the component of the annual rate of the Investment Adviser's fee against a Fund's assets for the number of days from the end of the preceding Valuation Period to the end of the current Valuation Period (see "Investment Advisory Arrangements"). The methods used to value the assets of each Fund are set forth in the Prospectus. YIELD AND PERFORMANCE INFORMATION Performance information is computed separately for each Fund in accordance with the formulas described below. At any time in the future, total return and yields may be higher or lower than in the past and there can be no assurance that any historical results will continue. Yield of the Money Market Fund. The Money Market Fund calculates a seven-day "current yield" (eight days when the seventh prior day has no net asset value because the Investment Company is closed on that day) based on a hypothetical shareholder account containing one share at the beginning of the seven-day period. The return is calculated for the period by determining the net change in the hypothetical account's value for the period, excluding capital changes. The net change is divided by the share value at the beginning of the period to give the base period return. This base period return is then multiplied by 365/7 to annualize the yield figure, which is carried to the nearest one- hundredth of one percent. Realized capital gains or losses and unrealized appreciation or depreciation of the assets of the Money Market Fund are included in the hypothetical account for the beginning of the period but changes during the period are not included in the value for the end of the period. Values also reflect asset charges (for advisory fees) as well as brokerage fees and other expenses. Current yields will fluctuate daily. Accordingly, yields for any given seven- day period do not necessarily represent future results. It should be remembered that yield depends on the type, quality, maturities and rates of return of the Money Market Fund's investments, among other factors. The Money Market Fund yield does not reflect the cost of insurance and other insurance company separate account charges. It also should not be compared to the yield of money market funds made available to the general public because they may use a different method to calculate yield. In addition, their yields are usually calculated on the basis of a constant one dollar price per share and they pay out earnings and dividends which accrue on a daily basis. The following is an example of the calculation of the Money Market Fund's yield for the seven-day period ended December 31, 1995. Yields may fluctuate substantially from the example shown. 1. Value for December 26, 1995 2. Value for December 26, 1995 (exclusive of capital changes) 3. Net change equals Line 1 subtracted from Line 2 4. Base period return equals Line 3 divided by Line 1 5. Current yield equals Line 4 annualized (multiplied by 365/8) Calculation of Total Return and Average Annual Total Return. Total Return with respect to the shares of a Fund is a measure of the change in value of an investment in a Fund over the period covered, which assumes that any dividends or capital gains distributions are reinvested in that Fund's shares immediately rather than paid to the investor in cash. The formula for Total Return with respect to a Fund's shares used herein includes four steps: (1) adding to the total number of shares purchased by a hypothetical $1,000 investment the number of shares which would have been purchased if all dividends and distributions paid or distributed during the period had been immediately reinvested; (2) calculating the value of the hypothetical initial investment of $1,000 as of the end of the period by multiplying the total number of shares on the last trading day of the period by the net asset value per share on the last trading day of the period; (3) assuming redemption at the end of the period; and (4) dividing this account value for the hypothetical investor by the initial $1,000 investment. Average Annual Total Return is measured by annualizing Total Return over the period. SAI-12 Yield of the Bond Funds. Yield of the shares of the Bond Funds will be computed by annualizing net investment income, as determined by the Commission's formula, calculated on a per share basis, for a recent one-month or 30-day period and dividing that amount by the net asset value per share of the Fund on the last trading day of that period. Net investment income will reflect amortization of any market value premium or discount of fixed income securities (except for obligations backed by mortgages or other assets) over such period and may include recognition of a pro rata portion of the stated dividend rate of dividend paying portfolio securities. The Yield of the Fund will vary from time to time depending upon market conditions, the composition of the portfolio and operating expenses allocated to the Fund. Performance Comparisons. Each Fund may from time to time include the Total Return, the Average Annual Total Return and Yield of its shares in advertisements or in information furnished to shareholders. The Money Market Fund may also from time to time include the Yield and Effective Yield of its shares in information furnished to shareholders. Any statements of a Fund's performance will also disclose the performance of the respective separate account issuing the Contracts. Each Fund may from time to time also include the ranking of its performance figures relative to such figures for groups of mutual funds categorized by Lipper Analytical Services ("Lipper") as having the same or similar investment objectives or by similar services that monitor the performance of mutual funds. Each Fund may also from time to time compare its performance to average mutual fund performance figures compiled by Lipper in Lipper Performance Analysis. Advertisements or information furnished to present shareholders or prospective investors may also include evaluations of a Fund published by nationally recognized ranking services and by financial publications that are nationally recognized such as Barron's, Business Week, CDA Technologies, Inc., Changing Times, Dow Jones Industrial Average, Financial Planning, Financial World, Forbes, Fortune, Hulbert's Financial Digest, Institutional Investor, Investors Daily, Money, Morningstar Mutual Funds, The New York Times, Stanger's Investment Adviser, Value Line, The Wall Street Journal, Wiesenberger Investment Company Service and USA Today. The performance figures described above may also be used to compare the performance of a Fund's shares against certain widely recognized standards or indices for stock and bond market performance. The Standard & Poor's Composite Index of 500 Stocks (the "S&P 500 Index") is a market value-weighted and unmanaged index showing the changes in the aggregate market value of 500 stocks relative to the base period 1941-43. The S&P 500 Index is composed almost entirely of common stocks of companies listed on the NYSE, although the common stocks of a few companies listed on the American Stock Exchange or traded OTC are included. The 500 companies represented include 400 industrial, 60 transportation and 50 financial services concerns. The S&P 500 Index represents about 80% of the market value of all issues traded on the NYSE. The Lehman Brothers Government/Corporate Bond Index (the "Lehman Government/Corporate Index") is a measure of the market value of approximately 5,300 bonds with a face value currently in excess of $1 million, which have at least one year to maturity and are rated "Baa" or higher ("investment grade") by a nationally recognized statistical rating agency. The Salomon Brothers 1-3 Year Bond Index and Salomon Brothers 3-7 Year Bond Index are comprised of the portion of the Salomon Brothers Broad Investment- Grade Bond Index ("BIG Index") with the maturity indicated. The BIG Index includes Treasury, Agency, mortgage and corporate securities. It is market- capitalization weighted and includes all fixed-rate bonds with a maturity of one year or longer and a minimum of $50 million amount outstanding at entry which remain in the index until their amount falls below $25 million ($200 million for mortgage securities). The Russell 2500 Index comprises the bottom 500 stocks in the Russell 1000 Index and all the stocks in the Russell 2000 Index and represents approximately 11% of the total U.S. equity market capitalization. The largest security in the index has a market value of roughly $1.3 billion. The Wilshire Small Company Growth Index is composed of 1750 securities and extends down to approximately the $100 million market capitalization level. In reports or other communications to shareholders, the Investment Company may also describe general economic and market conditions affecting the Funds and may compare the performance of the Funds with (1) that of mutual funds included in the rankings prepared by Lipper or similar investment services that monitor the performance of insurance company separate accounts or mutual funds, (2) IBC/Donoghue's Money Fund Report, (3) other appropriate indices of investment securities and averages for peer universe of funds which are described in this Statement of Additional Information, or (4) data developed by the Adviser or any of the Subadvisers derived from such indices or averages. SAI-13 DESCRIPTION OF CORPORATE BOND RATINGS Description of Corporate bond ratings of Moody's Investors Services, Inc.: Aaa--Bonds which are rated Aaa are judged to be of the best quality. They carry the smallest degree of investment risk and are generally referred to as "gilt-edge". Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of such issues. Aa--Bonds which are rated Aa are judged to be of high quality by all standards. Together with the Aaa group they comprise what are generally known as high-grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in Aaa securities or fluctuation of protective elements may be of greater amplitude or there may be other elements present which make the long-term risks appear somewhat larger than in Aaa securities. A--Bonds which are rated A possess many favorable investment attributes and are to be considered as upper medium grade obligations. Factors giving security to principal and interest are considered adequate but elements may be present which suggest a susceptibility to impairment sometime in the future. Baa--Bonds which are rated Baa are considered as medium grade obligations, i.e., they are neither highly protected nor poorly secured. Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics as well. Ba--Bonds which are rated Ba are judged to have speculative elements; their future cannot be considered as well assured. Often the protection of interest and principal payments may be very moderate and thereby not well safeguarded during both good and bad times over the future. Uncertainty of position characterizes bonds in this class. B--Bonds which are rated B generally lack characteristics of the desirable investment. Assurance of interest and principal payments or of maintenance of other terms of the contract over any long period of time may be small. Caa--Bonds which are rated Caa are of poor standing. Such issues may be in default or there may be present elements of danger with respect to principal or interest. Ca--Bonds which are rated Ca represent obligations which are speculative in a high degree. Such issues are often in default or have other marked shortcomings. C--Bonds which are rated C are the lowest rated class of bonds and issues so rated can be regarded as having extremely poor prospects of ever attaining any real investment standing. Moody's applies numerical modifiers, 1, 2 and 3 in each generic rating classification from Aa through B in its corporate bond rating system. The modifier 1 indicates that the security ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates that the issue ranks in the lower end of its generic rating category. Description of corporate bond ratings of Standard & Poor's Corporation: AAA--Debt rated AAA has the highest rating assigned by Standard & Poor's. Capacity to pay interest and repay principal is very strong. AA--Debt rated AA has a very strong capacity to pay interest and repay principal and differs from the higher rated issues only in small degree. A--Debt rated A has a strong capacity to pay interest and repay principal, although it is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher rated categories. BBB--Debt rated BBB is regarded as having an adequate capacity to pay interest and repay principal. Whereas it normally exhibits adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for debt in this category than in higher-rated categories. BB--B--CCC--CC--Debt rated BB, B, CCC and CC is regarded, on balance, as predominantly speculative with respect to the issuer's capacity to pay interest and repay principal in accordance with the terms of the obligation. BB indicates the lowest degree of speculation and CC the highest degree of speculation. While such debt will likely have some quality and protective characteristics, these are outweighed by large uncertainties or major risk exposures to adverse conditions. C--The rating C is reserved for income bonds on which no interest is being paid. D--Debt rated D is in default, and payment of interest and/or repayment of principal is in arrears. Plus (+) or Minus (-): The ratings from "AA" to "BB" may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories. SAI-14 INDEPENDENT AUDITORS The financial statements included in this Statement of Additional Information have been audited by Arthur Andersen LLP, independent public accountants, as indicated in their report with respect thereto, and are included herein in reliance upon the authority of said firm as experts in giving said report. LEGAL MATTERS The legal validity of the shares described in the Prospectus has been passed on by Patrick A. Burns, Esq., Senior Executive Vice President and General Counsel of the Investment Company. CUSTODIAN The Custodian of the Investment Company's Fund securities and other assets is The Chase Manhattan Bank, N.A., New York, New York 10019. DISTRIBUTION ARRANGEMENTS The Investment Company sells its shares on a continuous basis only to the Separate Accounts of the Insurance Companies. Such shares are sold at their respective net asset values and without the imposition of a sales charge. FINANCIAL STATEMENTS Financial statements of the Investment Corporation for the year ended December 31, 1995 are included as follows: President's Message........................................................ 1 Portfolio Management Discussions........................................... 2 Portfolio of Investments in Securities: Money Market Fund........................................................ 9 All America Fund......................................................... 10 Equity Index Fund........................................................ 16 Bond Fund................................................................ 21 Short-Term Bond Fund..................................................... 23 Mid-Term Bond Fund....................................................... 24 Composite Fund........................................................... 25 Aggressive Equity Fund................................................... 29 Statement of Assets and Liabilities........................................ 32 Statement of Operations.................................................... 33 Statements of Changes in Net Assets........................................ 34 Financial Highlights....................................................... 36 Notes to Financial Statements.............................................. 41 Report of Independent Public Accountants................................... 45
SAI-15 MUTUAL OF AMERICA INVESTMENT CORPORATION The economy continued to expand throughout 1995 although at a slower pace than in 1994. However, investors in both the stock and bond market enjoyed one of the most productive years in some time. The Dow Jones Industrial average and the Standard & Poor's 500 Stock Index finished the year with increases of 36.6% and 37.5% respectively. The fixed income market responded across the maturity spectrum with the yield curve ending 1995 much flatter than it began. Long treasuries recorded the strongest performance while the broad market averages returned over 19% for the year. In the first half of the year the Federal Reserve twice raised rates to control inflation, but slow economic growth and low inflation resulted in two rate reductions later in the year. Growth is expected to continue slowly in the first half of 1996, gaining strength in the latter part of the year. The principal drivers of the markets' performance in 1995 are still potential sources of market strength in 1996; a slowly growing economy, low inflation, good corporate earnings and strong fund flows into mutual funds. The stock market is expected to show continued strength throughout the year with corrections occurring in response to disappointing news and the fixed income market is expected to perform within a narrow trading range. The yield curve may steepen if the Federal Reserve continues to use monetary policy to stimulate economic growth. The market will be affected by national politics including the Presidential election and the continuing budget impasse. We are pleased to provide you the Annual Report of the Mutual of America Investment Corporation for the year ending December 31, 1995. Shown below are the total return figures for each of the Funds of the Mutual of America Investment Corporation. TWELVE MONTHS TO DECEMBER 31, 1995 Money Market Fund................................................... + 5.8% All America Fund.................................................... +36.6% Equity Index Fund................................................... +36.6% Bond Fund........................................................... +19.4% Short-Term Bond Fund................................................ + 7.7% Mid-Term Bond Fund.................................................. +16.3% Composite Fund...................................................... +21.9% Aggressive Equity Fund.............................................. +38.2%
Please note that the above total return performance figures do not reflect the deduction of Separate Account fees and expenses which are imposed by Mutual of America Life Insurance Company and American Life Insurance Company of New York, respectively. On the pages which immediately follow are brief presentations for each fund (excepting the Money Market Fund) of its respective: .historical total return achieved over specified periods, expressed as an average annual rate and as a cumulative rate; .equivalent in dollars of a $10,000 hypothetical investment at the beginning of each specified period; and .historical performance compared with an applicable index. The respective portfolios of each fund and the financial statements are presented in the pages which then follow. Your participation in these Funds is appreciated. Sincerely, /s/ Dolores J. Morrissey Dolores J. Morrissey Chairman of the Board and President, Mutual of America Investment Corporation 1 THE MONEY MARKET FUND The investment objective of the Money Market Fund is the realization of high current income to the extent consistent with the maintenance of liquidity, investment quality and stability of capital. The Fund will invest only in money market instruments and other short-term debt securities. The Fund outperformed the Salomon Brothers 3-month Treasury Bill Index and the Donohue Money Market Fund average yield for the last six months and all of 1995. THE ALL AMERICA FUND The investment objective of approximately 60% of assets are to provide investment results that to the extent practical correspond to the performance of the Standard & Poor's 500 Composite Index (S&P 500).The investment objective of the remaining assets is to achieve a high level of return by means of a diversified portfolio. These assets are managed by three sub- advisors and by Mutual of America Capital Management Corporation. The heavy weighting of technology stocks by several of these portfolios contributed to the Fund's being slightly behind the S&P 500 for the second half of the year, as these stocks experienced some downward pressure late in the year. However, total returns for the year were 36.6%, slightly ahead of the benchmark index (80% S&P 500, 10% Wilshire Small Company Growth Index and 10% Russell 2000 Index) which returned 36.2%. [ALL AMERICA GRAPH] 12/31/95 ALL AMERICA FUND BLENDED INDEX ---------------- ------------- ANNUAL ANNUAL SINCE SINCE INCEPTION INCEPTION 01/85 - ------- --------- --------- 01/85 10,000 10,000 12/85 14,129 13,157 12/86 15,809 15,553 12/87 17,215 16,357 12/88 18,920 19,056 12/89 23,830 25,045 12/90 23,471 24,246 12/91 29,203 31,653 12/92 30,129 34,084 12/93 33,791 37,499 05/94 33,105 36,722 12/94 34,223 37,696 12/95 46,741 51,343 All America Fund* ---------------- Total Return Period Growth ------------ Ended of Annual 12/31/95 $10,000 Cumulative Average - -------- ------- ---------- ------- 1 Year $13,658 36.6% 36.6% Since 5/2/94 (Inception) $14,119 41.2% 23.0% Blended Index** ---------------- Total Return Period Growth ------------ Ended of Annual 12/31/95 $10,000 Cumulative Average - -------- ------- ---------- ------- 1 Year $13,620 36.2% 36.2% Since 5/2/94 (Inception) $13,982 39.8% 22.3% *Prior to May 2, 1994, the All America Fund was known as the Stock Fund and had a different Investment objective and no sub-advisors. Consequently, the growth of a $10,000 investment shown on the above graph prior to May 2, 1994 reflects performance results achieved with the Stock Fund's objective and sole advisor. As of the date of change the growth of an original $10,000 investment to $33,105 represented a cumulative total return of 231.1%, or an average annual total return of 13.7% ** The Blended Index, for the comparison of the Fund's performance, begins on May 2, 1994. This index is an average consisting of 80% of the S & P 500 Index, 10% of the Wilshire Small Company Growth Index and 10% of the Russell 2000 Index. Prior to May 2, 1994 the Fund as compared to the S & P 500 Index which accumulated to $36,722, representing a cumulative total return of 267.2% or an average annual total return of 14.9%. 2 THE EQUITY INDEX FUND The investment objective of the Equity Index Fund is to provide investment results which, to the extent practical, correspond to the price and yield performance of publicly traded common stocks in the aggregate as represented by the Standard & Poor's 500 Index (S&P 500). For 1995, the Fund returned 36.6% vs 37.5% for the Index. Contributors to the market's performance include declining interest rates, strong corporate earnings, and intense merger and share repurchase activity. [EQUITY INDEX GRAPH] S & P 500 --------- Total Return Period Growth ------------ Ended of Average 12/31/95 $10,000 Cumulative Annual - -------- ------- ---------- ------- 1 Year $13,750 37.5% 37.5% Since Inception* $14,904 49.0% 14.7% EQUITY INDEX FUND ----------------- Total Return Period Growth ------------ Ended of Average 12/31/95 $10,000 Cumulative Annual - -------- ------- ---------- ------- 1 Year $13,662 36.6% 36.6% Since Inception* $14,729 47.3% 14.3% 3 THE BOND FUND This fund seeks a high level of return consistent with preservation of capital through investment in publicly traded debt securities. The Fund's return has been enhanced by its focus on corporate bonds which yield more than comparable segments of the Lehman Brothers Corporate Bond Index. Additionally, its average maturity is approximately 10% longer than the Index and this has had a beneficial impact as rates have declined. For 1995 the Fund returned 19.4% vs 19.2% for the Index. [BOND GRAPH] 12/31/95 BOND FUND LEHMAN BROS. SINCE SINCE INCEPTION INCEPTION --------- --------- 01/85 10,000 10,000 12/85 12,122 12,130 12/86 13,464 14,026 12/87 12,269 14,349 12/88 14,079 15,437 12/89 15,870 17,634 12/90 16,667 19,094 12/91 19,284 22,174 12/92 20,940 23,857 12/93 23,715 26,489 12/94 22,974 25,563 12/95 27,439 30,481 Bond Fund ---------- Total Return Period Growth ------------ Ended of Average 12/31/95 $10,000 Cumulative Annual - -------- ------- ---------- ------- 1 Year $11,943 19.4% 19.4% 5 Year $16,463 64.6% 10.5% 10 Years $22,636 126.4% 8.5% Since Inception* $27,439 174.4% 9.6% Lehman Bros. Gov't./Corp. Bond Index ------------------------------------ Total Return Period Growth ------------ Ended of Average 12/31/95 $10,000 Cumulative Annual - -------- ------- ---------- ------- 1 Year $11,924 19.2% 19.2% 5 Year $15,964 59.6% 9.8% 10 Years $25,128 151.3% 9.7% Since Inception* $30,481 204.8% 10.7% 4 THE SHORT-TERM BOND FUND The Short-term Bond Fund maintains an average maturity between one and three years. It's objectives are to achieve a high total return within this maturity constraint and to maintain principal value. For 1995, the Fund returned 7.7% vs 10.9% for the Salomon Brothers 1-3 Year Bond Index. The average life of investments in the Fund is shorter than the Index and a move toward lower rates caused the returns from longer issues in the Index to outperform the assets in the Fund. [SHORT TERM GRAPH] Short 12/31/95 Term Fund - -------- --------- SINCE SINCE ANNUAL INCEPTION INCEPTION - ------ --------- --------- 02/93 10,000 10,000 12/93 10,449 10,448 12/94 10,600 10,511 12/95 11,421 11,655 Short-Term Bond Fund -------------------- Total Return Period Growth ------------ Ended of Average 12/31/95 $10,000 Cumulative Annual - -------- ------- ---------- ------- 1 Year $10,774 7.7% 7.7% Since Inception* $11,421 14.2% 4.7% Salomon Bros. 1-3 Year Bond Index --------------------------------- Total Return Period Growth ------------ Ended of Average 12/31/95 $10,000 Cumulative Annual - -------- ------- ---------- ------- 1 Year $11,089 10.9% 10.9% Since Inception* $11,655 16.6% 5.4% 5 THE MID-TERM BOND FUND The average maturity of this Fund is between three and seven years. Investment grade securities must be purchased with 80% of its assets and a broad industry diversification is permitted. For 1995, the Fund achieved a 16.3% return, comparable to the Index. The Fund emphasized U.S. Treasury securities due to the historically narrow spreads between corporates and governments in its maturity range. [MID TERM GRAPH] MID TERM 12/31/95 FUND - -------- -------- SINCE SINCE ANNUAL INCEPTION INCEPTION - ------ --------- --------- 02/93 10,000 10,000 12/93 10,727 10,722 12/94 10,355 10,436 12/95 12,042 12,197 Mid-Term Bond Fund ------------------ Total Return Period Growth ------------ Ended of Average 12/31/95 $10,000 Cumulative Annual - -------- ------- ---------- ------- 1 Year $11,629 16.3% 16.3% Since Inception* $12,042 20.4% 6.6% Salomon Bros. 3-7 Year Bond Index --------------------------------- Total Return Period Growth ------------ Ended of Average 12/31/95 $10,000 Cumulative Annual - -------- ------- ---------- ------- 1 Year $11,688 16.9% 16.9% Since Inception* $12,197 22.0% 7.1% 6 THE COMPOSITE FUND This is a balanced Fund which seeks to achieve a high level of total return through appreciation of capital and current income. The proportion of assets invested in each type of security varies depending on market conditions and outlook. The stock and bond markets remained strong through the second half of the year. The Standard & Poor's 500 returned 37.5%, its strongest performance in years. The bond market, buoyed by sharply declining interest rates and easing by the Federal Reserve, allowed the broad market averages to return 19.2% for the year. The total Fund returned 21.9% for the year, below the benchmark index (50% S&P 500, 50% Lehman Brothers Government/Corporate) which returned 28.4%. The equity portion of the Fund was behind the comparable index. The Fund's value-oriented approach lead to an underweighting in technology stocks, which were a major contributor to the stock market advance. In addition, a conservative asset allocation in the first half of the year had a limiting effect on the equity portion of the Fund. The bond portion of the Fund outperformed the benchmark index (Lehman Brothers Government/Corporate Index) for the year. Bond returns were enhanced by an emphasis on corporate bonds. [CORPORATE FUND GRAPH] S&P 12/31/95 Composite Lehman - -------- --------- ------ SINCE SINCE INCEPTION INCEPTION ANNUAL ANNUAL - ------ ---------- ---------- 01/85 10,000 10,000 12/85 12,802 12,644 12/86 14,330 14,783 12/87 15,144 15,336 12/88 16,520 17,183 12/89 19,643 21,107 12/90 20,229 21,644 12/91 23,899 26,695 12/92 25,319 28,733 12/93 29,667 31,753 12/94 28,756 31,409 12/95 35,054 40,332 Composite Fund -------------- Total Return Period Growth ------------ Ended of Average 12/31/95 $10,000 Cumulative Annual - -------- ------- ---------- ------- 1 Year $12,190 21.9% 21.9% 5 Year $17,328 73.3% 11.6% 10 Years $27,381 173.8% 10.6% Since Inception* $35,054 250.5% 12.1% 50% S&P 500 Index ----------------- 50% Lehman Bros. Gov't./Corp. Bond Index ________________________________________ Total Return Period Growth ------------ Ended of Average 12/31/95 $10,000 Cumulative Annual - -------- ------- ---------- ------- 1 Year $12,841 28.4% 28.4% 5 Year $18,634 86.3% 13.3% 10 Years $31,899 219.0% 12.3% Since Inception* $40,332 303.3% 13.5% 7 THE AGGRESSIVE EQUITY FUND The investment objective of the Fund is to aggressively manage an equity portfolio which over time will outperform the broad market averages. Approximately 50% of the Fund's assets are invested in an aggressive growth manner and the other 50% in an aggressive value manner. The Fund's 38.2% return exceeded the 37.5% return of the S&P 500 Index. Positive contributors to performance included an emphasis on technology stocks which performed strongly for most of the year, only experiencing a correction late in the year, and favorable energy stock selection. [AGGRESSIVE EQUITY FUND GRAPH] 12/31/95 AGGRESIVE S&P EQUITY S&P 500 SINCE SINCE ANNUAL INCEPTION INCEPTION - ------ --------- --------- 5/94 10,000 10,000 12/94 10,597 10,344 12/95 14,640 14,223 Aggressive Equity Fund ---------------------- Total Return Period Growth ------------ Ended of Average 12/31/95 $10,000 Cumulative Annual - -------- ------- ---------- ------- 1 Year $13,815 38.2% 38.2% Since Inception* $14,640 46.4% 25.7% S & P 500 --------- Total Return Period Growth ------------ Ended of Average 12/31/95 $10,000 Cumulative Annual - -------- ------- ---------- ------- 1 Year $13,750 37.5% 37.5% Since Inception* $14,223 42.2% 23.6% 8 MUTUAL OF AMERICA INVESTMENT CORPORATION (MONEY MARKET FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES DECEMBER 31, 1995
DISCOUNT FACE AMORTIZED RATING* RATE MATURITY AMOUNT COST ------- -------- -------- ---------- ----------- SHORT-TERM DEBT SECURITIES: COMMERCIAL PAPER (100.0%): Air Products & Chemicals Corp....................... A1/P1 5.67% 01/18/96 $1,950,000 $ 1,944,128 Alabama Power Co............ A1/P1 5.73 01/16/96 2,045,000 2,039,445 Albertson's, Inc............ A1/P1 5.70 01/11/96 2,285,000 2,280,636 Albertson's, Inc............ A1/P1 5.70 01/17/96 1,200,000 1,196,567 American Express Credit Corp....................... A1/P1 5.69 01/02/96 2,255,000 2,253,921 American Express Credit Corp....................... A1/P1 5.66 02/02/96 1,230,000 1,223,402 Ameritech Corp.............. A1+/P1 5.60 02/06/96 1,755,000 1,744,590 AT&T Capital Corp........... A1/P1 5.71 01/31/96 1,800,000 1,790,828 British Gas Capital Corp.... A1+/P1 5.68 01/24/96 3,140,000 3,127,552 Canadian Wheat Board........ A1+/P1 5.70 01/08/96 2,000,000 1,997,130 Cargill Financial Svcs. Corp....................... A1+/P1 5.71 01/12/96 2,940,000 2,933,896 Chevron Oil Finance Co...... A1+/P1 5.72 01/19/96 2,000,000 1,993,621 Chevron Oil Finance Co...... A1+/P1 5.65 02/02/96 1,485,000 1,477,048 Consolidated Natural Gas Corp....................... A1+/P1 5.70 01/26/96 125,000 124,464 Exxon Asset Mgmt............ A1+/P1 5.68 01/03/96 3,155,000 3,152,991 Federal Home Loan Bank...... A1/P1 5.48 01/22/96 10,755,000 10,717,340 Ford Motor Credit Corp...... A1/P1 5.72 01/02/96 700,000 699,663 Ford Motor Credit Corp...... A1/P1 5.75 01/18/96 1,895,000 1,889,219 Ford Motor Credit Corp...... A1/P1 5.70 01/29/96 415,000 413,019 Gannett Co.................. A1/P1 5.85 01/12/96 3,600,000 3,592,393 General Electric Capital Corp....................... A1+/P1 5.70 01/19/96 2,550,000 2,541,892 General Electric Co......... A1+/P1 5.72 01/18/96 750,000 747,727 Great Lakes Chemical........ A1+/P1 5.70 02/02/96 2,000,000 1,989,192 Heinz (H.J.) Co............. A1/P1 5.55 02/13/96 3,000,000 2,979,184 Interstate Power Corp....... A1/P1 5.77 01/16/96 1,000,000 997,262 Interstate Power Corp....... A1/P1 5.75 01/30/96 1,000,000 995,028 Interstate Power Corp....... A1/P1 5.75 01/31/96 1,300,000 1,293,329 Motorola Credit............. A1+/P1 5.65 01/12/96 875,000 873,206 Nestle Capital Corp......... A1+/P1 5.85 01/03/96 1,000,000 999,350 PHH Corp.................... A1/P1 5.73 01/26/96 1,645,000 1,637,904 Potomac Electric Power...... A1/P1 5.60 02/02/96 3,600,000 3,580,957 Sony Capital Corp........... A1/P1 5.71 02/01/96 2,650,000 2,636,065 TDK USA Corp................ A1+/P1 5.75 01/22/96 1,100,000 1,095,940 Toyota Motor Credit Corp.... A1+/P1 5.72 01/17/96 1,266,000 1,262,362 Toyota Motor Credit Corp.... A1+/P1 5.70 01/19/96 2,000,000 1,993,640 USL Capital Corp............ A1/P1 5.68 02/08/96 1,165,000 1,157,621 ----------- TOTAL SHORT-TERM DEBT SECURITIES: (Cost: $73,372,512) 100.0%.. $73,372,512 ===========
- ------- * The ratings are provided by Standard & Poor's Corporation/Moody's Investors Services, Inc. The accompanying notes are an integral part of these financial statements. 9 MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES DECEMBER 31, 1995
NUMBER OF MARKET SHARES VALUE --------- ------------ INDEX PORTION: COMMON STOCKS: 3Com Corp................................................ 11,400 $ 531,525 Abbott Laboratories...................................... 54,600 2,279,550 Advanced Micro Devices, Inc.............................. 7,200 118,800 Aetna Life & Casualty Co................................. 7,900 547,075 Ahmanson (H.F.) & Co. ................................... 8,100 214,650 Air Products & Chemicals Corp. .......................... 7,700 406,175 Airtouch Communications, Inc. ........................... 34,200 966,150 Alberto Culver Co. Cl B.................................. 1,900 65,312 Albertson's, Inc......................................... 17,500 575,312 Alcan Aluminum Ltd. ..................................... 15,600 485,550 Alco Standard Corp. ..................................... 7,800 355,875 Alexander & Alexander Svcs., Inc. ....................... 3,100 58,900 Allergan, Inc. .......................................... 4,500 146,250 Allied Signal, Inc. ..................................... 19,500 926,250 Allstate Corp. .......................................... 31,000 1,274,875 Alltel Corp.............................................. 13,100 386,450 Aluminum Co. of America.................................. 12,200 645,075 Alza Corp................................................ 5,700 141,075 Amdahl Corp.............................................. 8,200 69,700 Amerada Hess Corp. ...................................... 6,400 339,200 American Brands, Inc..................................... 12,500 557,812 American Electric Power Co............................... 12,900 522,450 American Express Co...................................... 33,500 1,386,062 American General Corp. .................................. 14,100 491,737 American Greetings Corp. Cl A............................ 5,200 143,650 American Home Products Corp.............................. 21,600 2,095,200 American Int'l. Group, Inc............................... 32,800 3,034,000 American Stores Co. ..................................... 10,200 272,850 Ameritech Corp........................................... 38,300 2,259,700 Amgen, Inc. ............................................. 18,400 1,092,500 Amoco Corp. ............................................. 34,300 2,465,312 Amp, Inc. ............................................... 15,000 575,625 AMR Corp................................................. 5,300 393,525 Andrew Corp.............................................. 2,700 103,275 Anheuser Busch Cos., Inc. ............................... 17,600 1,177,000 Apple Computer, Inc. .................................... 8,500 270,937 Applied Materials, Inc. ................................. 12,300 484,312 Archer Daniels Midland Co................................ 36,600 658,800 Armco, Inc............................................... 7,300 42,887 Armstrong World Inds., Inc............................... 2,500 155,000 Asarco, Inc.............................................. 2,900 92,800 Ashland, Inc............................................. 4,400 154,550 AT&T Corp................................................ 110,000 7,122,500 Atlantic Richfield Co. .................................. 11,100 1,229,325 Autodesk, Inc............................................ 3,200 109,600 Automatic Data Processing, Inc........................... 9,900 735,075 Avery Dennison Corp...................................... 3,700 185,462 Avon Products, Inc....................................... 4,700 354,262 Baker Hughes, Inc........................................ 9,800 238,875 Ball Corp. .............................................. 2,100 57,750 Bally Entertainment Corp................................. 3,300 46,200 Baltimore Gas & Electric Co.............................. 10,200 290,700 Banc One Corp. .......................................... 27,000 1,019,250 Bank of Boston Corp. .................................... 7,800 360,750 Bank of New York, Inc. .................................. 13,800 672,750 BankAmerica Corp......................................... 25,600 1,657,600 Bankers Trust New York Corp. ............................ 5,400 359,100 Bard (C.R.), Inc......................................... 3,900 125,775 Barnett Banks, Inc....................................... 6,700 395,300 Barrick Gold Corp. ...................................... 24,400 643,550 Bausch & Lomb, Inc. ..................................... 4,000 158,500 Baxter International, Inc................................ 19,100 799,812
NUMBER OF MARKET SHARES VALUE --------- ------------ Becton Dickinson & Co. .................................. 4,600 $ 345,000 Bell Atlantic Corp....................................... 30,200 2,019,625 BellSouth Corp. ......................................... 68,600 2,984,100 Bemis Co. ............................................... 3,700 94,812 Beneficial Corp. ........................................ 3,700 172,512 Bethlehem Steel Corp..................................... 7,800 109,200 Beverly Enterprises, Inc. ............................... 6,800 72,250 Biomet, Inc.............................................. 8,000 143,000 Black & Decker Corp. .................................... 5,900 207,975 Block (H & R), Inc. ..................................... 7,200 291,600 Boatmen's Bancshares, Inc................................ 8,900 363,787 Boeing Co................................................ 23,700 1,857,487 Boise Cascade Corp....................................... 3,300 114,262 Boston Scientific Corp................................... 11,200 551,600 Briggs & Stratton Corp................................... 2,000 86,750 Bristol-Myers Squibb Co. ................................ 35,000 3,005,625 Brown Group, Inc. ....................................... 1,200 17,100 Brown-Forman Corp. Cl B.................................. 4,800 175,200 Browning Ferris Inds., Inc. ............................. 14,700 433,650 Brunos, Inc.............................................. 1 5 Brunswick Corp........................................... 6,600 158,400 Burlington Northern Santa Fe............................. 9,800 764,400 Burlington Resources, Inc................................ 8,700 341,475 Cabletron Systems, Inc................................... 5,000 405,000 Caliber System, Inc...................................... 2,700 132,012 Campbell Soup Co......................................... 17,200 1,032,000 Capital Cities/ABC, Inc. ................................ 10,600 1,307,775 Carolina Power & Light Co. .............................. 10,600 365,700 Caterpillar, Inc......................................... 13,600 799,000 Centex Corp.............................................. 2,000 69,500 Central & South West Corp. .............................. 13,300 370,737 Ceridian Corp............................................ 4,600 189,750 Champion International Corp.............................. 6,700 281,400 Charming Shoppes, Inc.................................... 7,100 20,412 Chase Manhattan Bank..................................... 12,400 751,750 Chemical Banking Corp. .................................. 17,300 1,016,375 Chevron Corp............................................. 45,100 2,367,750 Chrysler Corp............................................ 26,400 1,461,900 Chubb Corp. ............................................. 6,000 580,500 CIGNA Corp. ............................................. 5,200 536,900 Cincinnati Milacron, Inc................................. 2,400 63,000 Cinergy Corp. ........................................... 10,800 330,750 Circuit City Stores, Inc................................. 6,700 185,087 Cisco Systems, Inc....................................... 18,900 1,410,412 Citicorp................................................. 29,400 1,977,150 Clorox Co................................................ 3,600 257,850 Coastal Corp............................................. 7,300 271,925 Coca-Cola Co............................................. 86,700 6,437,475 Colgate-Palmolive Co..................................... 10,100 709,525 Columbia Gas System, Inc................................. 3,500 153,562 Columbia HCA Healthcare Corp............................. 30,800 1,563,100 Comcast Corp. Cl A....................................... 16,600 301,912 Comerica, Inc............................................ 7,900 316,000 Community Psychiatric Centers............................ 3,000 36,750 Compaq Computer Corp..................................... 18,400 883,200 Computer Associates Intl., Inc........................... 16,700 949,812 Computer Sciences Corp................................... 3,800 266,950 Conagra, Inc............................................. 16,500 680,625 Conrail, Inc............................................. 5,400 378,000 Consolidated Edison Co NY, Inc. ......................... 16,200 518,400 Consolidated Freightways, Inc............................ 3,000 79,500 Consolidated Natural Gas Co.............................. 6,500 294,937 Cooper Industries........................................ 7,500 275,625 Cooper Tire & Rubber Co. ................................ 5,800 142,825 Coors (Adolph) Co. Cl B.................................. 2,600 57,525
The accompanying notes are an integral part of these financial statements. 10 MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED) DECEMBER 31, 1995
NUMBER OF MARKET SHARES VALUE --------- ------------ INDEX PORTION (CONT'D): CoreStates Financial Corp. .............................. 9,600 $ 363,600 Corning, Inc. ........................................... 15,800 505,600 CPC International, Inc. ................................. 10,100 693,112 Crane Co. ............................................... 2,100 77,437 Cray Research, Inc. ..................................... 1,800 44,550 Crown Cork & Seal Co., Inc............................... 6,300 263,025 CSX Corp................................................. 14,600 666,125 CUC International, Inc................................... 12,300 419,737 Cummins Engine, Inc...................................... 2,800 103,600 Cyprus Amax Minerals Co.................................. 6,400 167,200 Dana Corp. .............................................. 7,000 204,750 Darden Restaurants, Inc. ................................ 11,000 130,625 Data General Corp. ...................................... 2,600 35,750 Dayton Hudson Corp. ..................................... 5,000 375,000 Dean Witter Discover & Co................................ 11,700 549,900 Deere & Co. ............................................. 18,100 638,025 Delta Air Lines, Inc. ................................... 3,500 258,562 Deluxe Corp.............................................. 5,700 165,300 Dial Corp................................................ 6,500 192,562 Digital Equipment Corp................................... 10,400 666,900 Dillard Dept. Stores, Inc................................ 7,800 222,300 Dominion Resources, Inc.................................. 12,000 495,000 Donnelley (R.R.) & Sons Co............................... 10,600 417,375 Dover Corp. ............................................. 7,800 287,625 Dow Chemical Co.......................................... 18,100 1,273,787 Dow Jones & Co., Inc. ................................... 6,700 267,162 Dresser Industries, Inc. ................................ 12,600 307,125 DSC Communications Corp. ................................ 8,000 295,000 DTE Energy Co............................................ 10,000 345,000 Du Pont (E.I.) De Nemours................................ 38,400 2,683,200 Duke Power Co............................................ 14,200 672,725 Dun & Bradstreet Corp.................................... 11,700 757,575 Eastern Enterprises...................................... 1,400 49,350 Eastman Chemical Co...................................... 5,500 344,437 Eastman Kodak Co......................................... 23,600 1,581,200 Eaton Corp............................................... 5,400 289,575 Echlin, Inc. ............................................ 4,100 149,650 Echo Bay Mines, Ltd. .................................... 8,700 90,262 Ecolab, Inc.............................................. 4,500 135,000 EG&G, Inc................................................ 3,600 87,300 Emerson Electric Co...................................... 15,500 1,267,125 Engelhard Corp........................................... 10,000 217,500 Enron Corp............................................... 17,400 663,375 Enserch Corp............................................. 4,700 76,375 Entergy Corp............................................. 15,700 459,225 Exxon Corp. ............................................. 85,800 6,874,725 Federal Express Corp. ................................... 3,900 288,112 Federal Home Loan Mtge Corp.............................. 12,500 1,043,750 Federal National Mtge Assn............................... 18,800 2,333,550 Federal Paper Board Co................................... 3,300 171,187 Federated Department Stores.............................. 14,000 381,500 First Bank System, Inc................................... 9,000 446,625 First Chicago NBD Corp. ................................. 22,203 877,018 First Data Corp. ........................................ 15,400 1,029,875 First Interstate Bancorp................................. 5,200 709,800 First Union Corp......................................... 20,660 1,149,212 Fleet Financial Group, Inc............................... 16,999 692,709 Fleetwood Enterprises, Inc............................... 3,200 82,400 Fleming Cos., Inc. ...................................... 2,600 53,625 Fluor Corp. ............................................. 5,700 376,200 FMC Corp. ............................................... 2,500 169,062 Ford Motor Co. .......................................... 74,200 2,151,800 Foster Wheeler Corp...................................... 2,800 119,000
NUMBER OF MARKET SHARES VALUE --------- ------------ FPL Group, Inc. ......................................... 12,800 $ 593,600 Freeport-McMoran Copper Cl B............................. 14,000 393,750 Fruit of the Loom, Inc................................... 5,200 126,100 Gannett, Inc. ........................................... 9,700 595,337 Gap, Inc. ............................................... 10,000 420,000 General Dynamics Corp. .................................. 4,400 260,150 General Electric Co...................................... 115,400 8,308,800 General Mills, Inc. ..................................... 11,000 635,250 General Motors Corp...................................... 51,600 2,728,350 General Public Utilities Corp............................ 8,300 282,200 General Re Corp. ........................................ 5,700 883,500 General Signal Corp. .................................... 3,300 106,837 Genuine Parts Co......................................... 8,500 348,500 Georgia Pacific Corp..................................... 6,300 432,337 Giant Food, Inc. ........................................ 4,100 129,150 Giddings & Lewis, Inc. .................................. 2,400 39,600 Gillette Co. ............................................ 30,700 1,600,237 Golden West Financial Corp. ............................. 4,100 226,525 Goodrich (B.F.) Co. ..................................... 1,800 122,625 Goodyear Tire & Rubber Co. .............................. 10,500 476,437 Grainger (W.W.), Inc. ................................... 3,500 231,875 Great Atl. & Pac. Tea Co................................. 2,600 59,800 Great Lakes Chemical Corp................................ 4,500 324,000 Great Western Financial Corp. ........................... 9,400 239,700 GTE Corp................................................. 66,900 2,943,600 Halliburton Co........................................... 7,900 399,937 Handleman Co............................................. 2,300 13,225 Harcourt General, Inc. .................................. 5,000 209,375 Harland (John H.) Co. ................................... 2,100 43,837 Harnischfeger Inds., Inc. ............................... 3,400 113,050 Harrah's Entertainment, Inc. ............................ 7,100 172,175 Harris Corp.............................................. 2,700 147,487 Hasbro, Inc.............................................. 6,100 189,100 Heinz (H.J.) Co. ........................................ 25,500 844,687 Helmerich & Payne, Inc. ................................. 1,700 50,575 Hercules, Inc. .......................................... 7,700 434,087 Hershey Foods Corp. ..................................... 5,300 344,500 Hewlett-Packard Co. ..................................... 35,400 2,964,750 Hilton Hotels Corp. ..................................... 3,300 202,950 Home Depot, Inc.......................................... 32,900 1,575,087 Homestake Mining Co. .................................... 9,500 148,437 Honeywell, Inc........................................... 8,800 427,900 Household International, Inc............................. 6,800 402,050 Houston Industries, Inc.................................. 18,100 438,925 Humana, Inc.............................................. 11,200 306,600 Illinois Tool Works, Inc. ............................... 8,100 477,900 Inco, Ltd................................................ 8,200 272,650 Ingersoll Rand Co. ...................................... 7,500 263,437 Inland Steel, Inc........................................ 3,400 85,425 Intel Corp. ............................................. 56,900 3,229,075 Intergraph Corp. ........................................ 3,200 50,400 International Paper Co................................... 17,600 666,600 Interpublic Group of Cos., Inc........................... 5,400 234,225 Intl. Business Machines Corp............................. 39,300 3,605,775 Intl. Flavors & Fragrances............................... 7,700 369,600 ITT Corp................................................. 8,100 429,300 ITT Hartford Group, Inc.................................. 8,100 391,837 ITT Industries .......................................... 8,100 194,400 James River Corp. of VA.................................. 5,700 137,512 Jefferson-Pilot Corp..................................... 4,950 230,175 Johnson & Johnson........................................ 44,800 3,836,000 Johnson Controls, Inc. .................................. 2,800 192,500 Jostens, Inc............................................. 2,700 65,475 Kaufman & Broad Home Corp. .............................. 2,200 32,725 Kellogg Co............................................... 15,000 1,158,750
The accompanying notes are an integral part of these financial statements. 11 MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED) DECEMBER 31, 1995
NUMBER OF MARKET SHARES VALUE --------- ------------ INDEX PORTION (CONT'D): Kerr-McGee Corp.......................................... 3,600 $ 228,600 KeyCorp.................................................. 16,400 594,500 Kimberly-Clark Corp...................................... 19,200 1,588,800 King World Productions, Inc.............................. 2,500 97,187 Kmart Corp............................................... 31,700 229,825 Knight-Ridder, Inc....................................... 3,400 212,500 Kroger Corp.............................................. 8,500 318,750 Laidlaw, Inc. Cl B....................................... 20,300 208,075 Lilly (Eli) & Co......................................... 38,200 2,148,750 Limited (The), Inc....................................... 24,700 429,162 Lincoln National Corp.................................... 7,200 387,000 Liz Claiborne, Inc....................................... 5,100 141,525 Lockheed Martin Corp..................................... 13,800 1,090,200 Loews Corp............................................... 8,100 634,837 Longs Drug Stores, Inc................................... 1,400 67,025 Loral Corp............................................... 11,900 420,962 Louisiana Land & Exploration............................. 2,300 98,612 Louisiana-Pacific Corp................................... 7,400 179,450 Lowe's Companies, Inc.................................... 11,100 371,850 LSI Logic Corp........................................... 8,800 288,200 Luby's Cafeteria, Inc.................................... 1,600 35,600 Mallinckrodt Group, Inc.................................. 5,300 192,787 Manor Care, Inc.......................................... 4,300 150,500 Marriott International, Inc.............................. 8,600 328,950 Marsh & McLennan Cos., Inc............................... 5,100 452,625 Masco Corp............................................... 11,100 348,262 Mattel, Inc.............................................. 15,300 470,475 May Department Stores Co................................. 17,200 726,700 Maytag Corp.............................................. 7,400 149,850 MBNA Corp................................................ 10,300 379,812 McDermott International, Inc............................. 3,800 83,600 McDonald's Corp.......................................... 47,900 2,161,487 McDonnell Douglas Corp................................... 7,700 708,400 McGraw-Hill Cos., Inc.................................... 3,500 304,937 MCI Communications Corp.................................. 46,800 1,222,650 Mead Corp................................................ 3,700 193,325 Medtronic, Inc........................................... 16,000 894,000 Mellon Bank Corp......................................... 9,800 526,750 Melville Corp............................................ 7,300 224,475 Mercantile Stores, Inc................................... 2,500 115,625 Merck & Co., Inc......................................... 85,400 5,615,050 Meredith Corp............................................ 1,900 79,562 Merrill Lynch & Co., Inc................................. 12,100 617,100 Micron Technology, Inc................................... 14,300 568,425 Microsoft Corp........................................... 40,900 3,588,975 Millipore Corp........................................... 3,100 127,487 Minnesota Mining & Mfg. Co............................... 29,000 1,921,250 Mobil Corp............................................... 27,300 3,057,600 Monsanto Co.............................................. 8,000 980,000 Moore Corp., Ltd......................................... 6,900 128,512 Morgan (J.P.) & Co., Inc................................. 13,000 1,043,250 Morgan Stanley Group, Inc................................ 5,400 435,375 Morton International, Inc................................ 10,200 365,925 Motorola, Inc............................................ 40,700 2,319,900 NACCO Industries, Inc. Cl A.............................. 600 33,300 Nalco Chemical Co........................................ 4,600 138,575 National City Corp....................................... 10,200 337,875 National Semiconductor Corp.............................. 8,500 189,125 National Service Industries.............................. 3,300 106,837 NationsBank Corp......................................... 18,700 1,301,987 Navistar International Corp.............................. 5,200 54,600 New York Times Co. Cl A.................................. 6,700 198,487 Newell Co................................................ 11,000 284,625
NUMBER OF MARKET SHARES VALUE --------- ------------ Newmont Mining Corp...................................... 6,500 $ 294,125 Niagara Mohawk Power Corp................................ 10,000 96,250 Nicor, Inc............................................... 3,500 96,250 Nike, Inc. Cl B.......................................... 9,900 689,287 NorAm Energy Corp........................................ 8,600 76,325 Nordstrom, Inc........................................... 5,700 230,850 Norfolk Southern Corp.................................... 9,000 714,375 Northern States Power Co................................. 4,700 230,887 Northern Telecom, Ltd.................................... 17,500 752,500 Northrop Grumman Corp.................................... 3,400 217,600 Norwest Corp............................................. 24,400 805,200 Novell, Inc.............................................. 25,600 364,800 Nucor Corp............................................... 6,000 342,750 NYNEX Corp............................................... 29,500 1,593,000 Occidental Petroleum Corp................................ 22,000 470,250 Ogden Corp............................................... 3,400 72,675 Ohio Edison Co........................................... 10,500 246,750 Oneok, Inc............................................... 1,900 43,462 Oracle Corp.............................................. 30,000 1,271,250 Oryx Energy Co........................................... 7,200 96,300 Outboard Marine Corp..................................... 1,400 28,525 Owens-Corning Fiberglass Corp............................ 3,500 157,062 Paccar, Inc.............................................. 2,700 113,737 Pacific Enterprises...................................... 5,800 163,850 Pacific Gas & Electric Co................................ 29,300 831,387 Pacific Telesis Group.................................... 29,600 995,300 PacifiCorp............................................... 19,600 416,500 Pall Corp................................................ 7,900 212,312 Panhandle Eastern Corp................................... 10,300 287,112 Parker Hannifin Corp..................................... 5,100 174,675 Peco Energy Co........................................... 15,300 460,912 Penney (J.C.) Co., Inc................................... 15,600 742,950 Pennzoil Co.............................................. 3,200 135,200 Peoples Energy Corp...................................... 2,400 76,200 Pep Boys-Manny, Moe & Jack............................... 4,300 110,187 Pepsico, Inc............................................. 54,400 3,039,600 Perkin-Elmer Corp........................................ 2,900 109,475 Pfizer, Inc.............................................. 43,800 2,759,400 Pharmacia & Upjohn, Inc.................................. 34,800 1,348,500 Phelps Dodge Corp........................................ 4,800 298,800 Phillip Morris Cos., Inc................................. 58,000 5,249,000 Phillips Petroleum Co.................................... 18,100 617,662 Pioneer Hi-Bred Intl., Inc............................... 5,800 322,625 Pitney Bowes, Inc........................................ 10,500 493,500 Pittston Services Group.................................. 2,900 90,987 Placer Dome, Inc......................................... 16,500 398,062 PNC Bank Corp............................................ 15,800 509,550 Polaroid Corp............................................ 3,100 146,862 Potlatch Corp............................................ 2,000 80,000 PP&L Resources, Inc...................................... 11,000 275,000 PPG Industries, Inc...................................... 13,500 617,625 Praxair, Inc............................................. 9,700 326,162 Premark International, Inc............................... 4,200 212,625 Price/Costco, Inc........................................ 13,500 205,875 Proctor & Gamble Co...................................... 47,400 3,934,200 Providian Corp........................................... 6,600 268,950 Public Svc. Enterprise Group............................. 16,900 517,562 Pulte Corp............................................... 1,900 63,887 Quaker Oats Co........................................... 9,300 320,850 Ralston Purina Co........................................ 7,300 455,337 Raychem Corp............................................. 3,000 170,625 Raytheon Co.............................................. 16,700 789,075 Reebok International Ltd................................. 5,200 146,900 Republic New York Corp................................... 3,900 242,287 Reynold's Metals Co...................................... 4,400 250,250
The accompanying notes are an integral part of these financial statements. 12 MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED) DECEMBER 31, 1995
NUMBER OF MARKET SHARES VALUE --------- ------------ INDEX PORTION (CONT'D): Rite-Aid Corp............................................ 5,800 $ 198,650 Rockwell International Corp.............................. 15,000 793,125 Rohm & Haas Co........................................... 4,700 302,562 Rowan Cos., Inc.......................................... 5,900 58,262 Royal Dutch Petroleum Co................................. 37,000 5,221,625 Rubbermaid, Inc.......................................... 10,900 277,950 Russell Corp............................................. 2,700 74,925 Ryan's Family Steak Houses Inc........................... 3,700 25,900 Ryder System, Inc........................................ 5,500 136,125 Safeco Corp.............................................. 8,700 300,150 Safety Kleen Corp........................................ 4,000 62,500 Salomon, Inc............................................. 7,300 259,150 Santa Fe Energy Res., Inc................................ 6,200 59,675 Sante Fe Pacific Gold Corp............................... 9,100 110,337 Sara Lee Corp............................................ 33,400 1,064,625 SBC Communications, Inc.................................. 42,100 2,420,750 SCE Corp................................................. 30,800 546,700 Schering-Plough Corp..................................... 25,400 1,390,650 Schlumberger, Ltd........................................ 16,700 1,156,475 Scientific-Atlanta, Inc.................................. 5,300 79,500 Seagram, Ltd............................................. 25,800 893,325 Sears Roebuck & Co....................................... 26,900 1,049,100 Service Corp. International.............................. 7,200 316,800 Shared Medical Systems Corp.............................. 1,600 87,000 Sherwin-Williams Co...................................... 5,900 240,425 Shoney's, Inc............................................ 2,900 29,725 Sigma Aldrich Corp....................................... 3,400 168,300 Silicon Graphics, Inc.................................... 11,100 305,250 Snap-On, Inc............................................. 2,800 126,700 Sonat, Inc............................................... 6,000 213,750 Southern Co.............................................. 46,000 1,132,750 Southwest Airlines Co.................................... 9,900 230,175 Springs Industries, Inc. Cl A............................ 1,400 57,925 Sprint Corp.............................................. 24,100 960,987 St. Jude Medical, Inc.................................... 4,800 206,400 St. Paul Companies (The)................................. 5,800 322,625 Stanley Works............................................ 3,100 159,650 Stone Container Corp..................................... 6,600 94,875 Stride Rite Corp......................................... 3,400 25,500 Sun Co., Inc............................................. 5,200 142,350 Sun Microsystems, Inc.................................... 13,100 597,687 Suntrust Banks, Inc...................................... 7,900 541,150 Supervalu, Inc........................................... 4,700 148,050 Sysco Corp............................................... 12,600 409,500 Tandem Computers, Inc.................................... 8,100 86,062 Tandy Corp............................................... 4,400 182,600 Tektronix, Inc........................................... 2,300 112,987 Tele-Communications, Inc. Cl A........................... 45,100 896,362 Teledyne, Inc............................................ 3,896 99,835 Tellabs, Inc............................................. 6,100 225,700 Temple-Inland, Inc....................................... 3,900 172,087 Tenet Healthcare Corp.................................... 13,800 286,350 Tenneco, Inc............................................. 12,300 610,387 Texaco, Inc.............................................. 18,200 1,428,700 Texas Instruments, Inc................................... 13,000 672,750 Texas Utilities Co....................................... 15,600 639,600 Textron, Inc............................................. 5,800 391,500 The Walt Disney Co....................................... 36,100 2,129,900 Thomas & Betts Corp...................................... 1,400 103,250 Time Warner, Inc......................................... 26,700 1,011,262 Times Mirror Co. Cl A.................................... 7,800 264,225 Timken Co................................................ 2,200 84,150 TJX Cos., Inc............................................ 5,000 94,375
NUMBER OF MARKET SHARES VALUE --------- ------------ Torchmark Corp........................................... 4,900 $ 221,725 Toys "R" Us, Inc......................................... 18,900 411,075 Transamerica Corp........................................ 4,700 342,512 Travelers Group, Inc..................................... 22,000 1,383,250 Tribune Co............................................... 4,400 268,950 Trinova Corp............................................. 2,000 57,250 TRW, Inc................................................. 4,500 348,750 Tyco Labs, Inc........................................... 10,600 377,625 U.S. Bancorp............................................. 6,800 228,650 U.S. Life Corp........................................... 2,400 71,700 U.S. Surgical Corp....................................... 3,900 83,362 U.S. West Communications Group........................... 32,500 1,161,875 U.S. West Media Group.................................... 32,600 619,400 Unicom Corp.............................................. 14,800 484,700 Unilever N.V............................................. 11,100 1,562,325 Union Camp Corp.......................................... 4,800 228,600 Union Carbide Corp....................................... 9,500 356,250 Union Electric Co........................................ 7,100 296,425 Union Pacific Corp....................................... 14,200 937,200 Unisys Corp.............................................. 11,800 66,375 United Healthcare Corp................................... 12,100 792,550 United Technologies Corp................................. 8,400 796,950 Unocal Corp.............................................. 17,100 498,037 UNUM Corp................................................ 5,000 275,000 US Healthcare, Inc....................................... 10,600 492,900 USAir Group, Inc......................................... 4,300 56,975 USF&G Corp............................................... 7,800 131,625 UST, Inc................................................. 13,400 447,225 USX-Marthon Group........................................ 19,900 388,050 USX-U.S. Steel Group, Inc................................ 5,700 175,275 V F Corp................................................. 4,400 232,100 Varity Corp.............................................. 2,800 103,950 Viacom, Inc.............................................. 24,900 1,179,656 W.R. Grace & Co.......................................... 6,700 396,137 Wachovia Corp............................................ 11,800 539,850 Wal-Mart Stores, Inc..................................... 158,600 3,548,675 Walgreen Co.............................................. 17,000 507,875 Warner-Lambert Co........................................ 9,300 903,262 Wells Fargo & Co......................................... 3,300 712,800 Wendy's International, Inc............................... 7,100 150,875 Western Atlas, Inc....................................... 3,700 186,850 Westinghouse Electric Corp............................... 27,100 447,150 Westvaco Corp............................................ 7,000 194,250 Weyerhaeuser Co.......................................... 14,000 605,500 Whirlpool Corp........................................... 5,100 271,575 Whitman Corp............................................. 7,200 167,400 Willamette Industries, Inc............................... 3,800 213,750 Williams Cos., Inc....................................... 7,000 307,125 Winn-Dixie Stores, Inc................................... 10,400 383,500 WMX Technologies, Inc.................................... 33,500 1,000,812 Woolworth Corp........................................... 9,200 119,600 Worthington Industries, Inc.............................. 6,300 131,118 Wrigley (Wm.) Jr. Co..................................... 8,000 420,000 Xerox Corp............................................... 7,500 1,027,500 Yellow Corp.............................................. 1,900 23,512 ------------ TOTAL INDEX PORTION COMMON STOCKS (Cost: $241,593,122) 59.6%.............................. 317,434,150 ------------ ACTIVE PORTION: COMMON STOCKS: Basic Materials (2.0%): Delta & Pine Land Co.................................... 60,000 2,205,000 International Paper Co.................................. 35,800 1,355,925
The accompanying notes are an integral part of these financial statements. 13 MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED) DECEMBER 31, 1995
NUMBER OF MARKET SHARES VALUE --------- ------------ ACTIVE PORTION (CONT'D): Loctite Corp........................................... 30,000 $ 1,425,000 Monsanto Co............................................ 13,000 1,592,500 R.P. Scherer Corp.*.................................... 40,000 1,965,000 Vigoro Corp............................................ 30,000 1,852,500 ------------ 10,395,925 ------------ Consumer, Cyclical (8.4%): American Greetings Corp. Cl A*......................... 46,300 1,279,037 Borg-Warner Automotive, Inc............................ 50,000 1,600,000 Brunswick Corp......................................... 62,000 1,488,000 Callaway Golf Co....................................... 75,500 1,708,187 Cinar Films, Inc. Cl B*................................ 40,000 605,000 Cintas Corp............................................ 36,000 1,602,000 Clayton Homes, Inc..................................... 25,000 534,375 Dayton Hudson Corp..................................... 17,000 1,275,000 Eastman Kodak Co....................................... 18,555 1,243,185 Finlay Enterprises, Inc.*.............................. 80,000 940,000 First Alert, Inc.*..................................... 100,000 862,500 First Brands Corp...................................... 39,000 1,857,375 Flightsafety International............................. 37,000 1,859,250 Gannett, Inc........................................... 17,600 1,080,200 Goodyear Tire & Rubber Co.............................. 24,900 1,129,837 Landry's Seafood Restaurant*........................... 47,300 807,056 Lone Star Steakhouse*.................................. 40,000 1,535,000 Masco Corp............................................. 33,500 1,051,062 May Department Stores Co............................... 26,100 1,102,725 Midwest Express Holdings, Inc.*........................ 40,000 1,110,000 Norton McNaughton, Inc.*............................... 75,000 834,375 OfficeMax, Inc.*....................................... 69,750 1,560,656 Outback Steakhouse, Inc.*.............................. 46,000 1,650,250 Oxford Resources Corp. Cl A*........................... 20,000 450,000 Pep Boys-Manny, Moe & Jack............................. 60,000 1,537,500 Pinnacle Systems, Inc.*................................ 10,000 247,500 Ryder System, Inc...................................... 39,500 977,625 Smith (A.O.) Corp...................................... 53,000 1,099,750 St. John Knits, Inc.................................... 40,000 2,125,000 Talbots, Inc........................................... 46,500 1,336,875 Tiffany & Co........................................... 35,000 1,763,125 Titan Wheel Int'l, Inc................................. 100,000 1,625,000 Tommy Hilfiger Corp.*.................................. 6,600 279,675 Toro Co................................................ 50,000 1,643,750 Tower Automotive, Inc.*................................ 100,000 1,750,000 U.S. Home Corp.*....................................... 10,000 291,250 V F Corp............................................... 17,500 923,125 ------------ 44,765,245 ------------ Consumer, Non-Cyclical (6.0%): American Stores Co..................................... 46,000 1,230,500 Apria Healthcare Group, Inc.*.......................... 10,000 282,500 Biochem Pharma, Inc.*.................................. 23,500 942,937 Ciba Geigy A G ADR*.................................... 31,000 1,360,125 Compdent Corp.*........................................ 6,600 273,900 Cytotherapeutics, Inc.*................................ 19,100 327,087 Ergo Science Corp.*.................................... 15,000 213,750 Forest Laboratories, Inc. Cl A*........................ 40,000 1,810,000 Genzyme Corp.*......................................... 30,000 1,871,250 Guest Supply, Inc.*.................................... 67,200 1,520,400 Healthsource, Inc.*.................................... 10,000 360,000 Hologic, Inc.*......................................... 10,000 410,000 IDEC Pharmacueticals Corp.............................. 12,100 232,925 J.M. Smucker Co........................................ 50,500 1,111,000 Kimberly-Clark Corp.................................... 18,720 1,549,080 Lincare Holdings, Inc.*................................ 19,000 475,000
NUMBER OF MARKET SHARES VALUE --------- -------------- Liposome Company, Inc.*............................... 20,000 $ 400,000 Maybelline, Inc....................................... 65,000 2,356,250 Metra Biosystems, Inc.*............................... 13,000 224,250 Oakley, Inc.*......................................... 22,000 748,000 OccuSystems, Inc.*.................................... 20,000 400,000 Patterson Dental Co.*................................. 55,000 1,485,000 Pharmacia & Upjohn, Inc............................... 37,700 1,460,875 Phillip Morris Cos., Inc.............................. 21,600 1,954,800 PhyCor, Inc.*......................................... 15,000 758,437 Sepracor, Inc.*....................................... 19,300 354,637 Smithkline Beecham ADR................................ 27,689 1,536,739 Sola International, Inc.*............................. 87,000 2,196,750 Summit Technology, Inc.*.............................. 10,500 354,375 Sybron Intl. Corp.*................................... 20,000 472,500 Target Therapeutics, Inc.*............................ 10,000 427,500 Universal Foods Corp.................................. 50,000 2,006,250 VISX, Inc.*........................................... 20,000 780,000 -------------- 31,886,817 -------------- Energy (1.4%): Elf Aquitaine--ADR.................................... 35,520 1,305,361 Mobil Corp............................................ 11,000 1,232,000 Quaker State Corp..................................... 90,000 1,136,250 Repsol S.A. ADR....................................... 56,775 1,866,478 Royal Dutch Petroleum Co.............................. 8,100 1,143,112 USX-Marthon Group..................................... 52,000 1,014,000 -------------- 7,697,201 -------------- Financial (3.0%): Ahmanson (H.F.) & Co.................................. 34,951 926,201 American Int'l. Group, Inc............................ 30,000 2,775,000 Amresco, Inc.......................................... 20,000 255,000 Aon Corp.............................................. 21,000 1,047,375 Bank of New York, Inc................................. 16,433 801,108 Citicorp.............................................. 49,000 3,295,250 CoreStates Financial Corp............................. 33,900 1,283,962 Fleet Financial Group, Inc............................ 21,234 865,300 Keystone Financial, Inc............................... 60,000 1,800,000 NationsBank Corp...................................... 27,000 1,879,875 Providian Corp........................................ 29,100 1,185,825 -------------- 16,114,896 -------------- Industrial (4.3%): Applied Materials, Inc.*.............................. 38,000 1,496,250 Ball Corp............................................. 31,500 866,250 Briggs & Stratton Corp................................ 28,000 1,214,500 Browning Ferris Inds., Inc............................ 45,000 1,327,500 Burlington Northern Santa Fe.......................... 17,711 1,381,458 Castle (A.M.) & Co.................................... 4,200 118,125 Electroglas Inc.*..................................... 42,000 1,029,000 First Data Corp....................................... 45,991 3,075,648 Foster Wheeler Corp................................... 31,500 1,338,750 Hanson PLC--ADR....................................... 20,738 316,254 Hardinge, Inc......................................... 67,500 1,755,000 HBO & Co.............................................. 15,000 1,149,375 Kennametal, Inc....................................... 45,000 1,428,750 Parker Hannifin Corp.................................. 30,000 1,027,500 PRI Automation, Inc.*................................. 5,000 175,625 Sealed Air Corp.*..................................... 62,000 1,736,000 Union Pacific Corp.................................... 24,200 1,597,200 United Waste Systems, Inc.*........................... 5,000 186,250 USA Waste Services, Inc.*............................. 75,000 1,415,625 -------------- 22,635,060 --------------
The accompanying notes are an integral part of these financial statements. 14 MUTUAL OF AMERICA INVESTMENT CORPORATION (ALL AMERICA FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED) DECEMBER 31, 1995
NUMBER OF MARKET SHARES VALUE --------- ------------ ACTIVE PORTION (CONT'D): Technology (13.8%): 3Com Corp.*............................................. 142,000 $ 6,620,750 Activision, Inc.*....................................... 3,000 33,000 Adaptec, Inc.*.......................................... 15,000 615,000 ADC Telecommunications, Inc.*........................... 20,000 730,000 Adobe Systems, Inc...................................... 40,000 2,480,000 Altera Corp.*........................................... 26,000 1,293,500 Ascend Communications, Inc.*............................ 9,400 762,575 Atmel Corp.*............................................ 82,000 1,834,750 Bay Networks, Inc.*..................................... 19,800 814,275 Bay Networks, Inc.*..................................... 105,750 4,348,968 C.P. Clare Corp.*....................................... 43,000 881,500 Centocor, Inc.*......................................... 20,000 617,500 Cisco Systems, Inc.*.................................... 73,000 5,447,625 Compaq Computer Corp.*.................................. 63,500 3,048,000 Cygnus, Inc.*........................................... 10,000 223,750 Dentrite International, Inc.*........................... 5,000 90,000 DSC Communications Corp.*............................... 25,000 921,875 DSC Communications Corp.*............................... 53,000 1,954,375 DSP Communications, Inc.*............................... 10,000 436,250 Electronics For Imaging, Inc.*.......................... 30,000 1,312,500 EPIC Design Technology, Inc.*........................... 14,000 294,000 Gandalf Technologies, Inc.*............................. 25,000 425,000 General DataComm Industries*............................ 15,000 256,875 Glenayre Technologies, Inc.*............................ 48,375 3,011,343 Incyte Pharmaceuticals, Inc............................. 3,300 82,500 Informix Corp.*......................................... 48,600 1,458,000 Intel Corp.............................................. 64,000 3,632,000 Intl. Business Machines Corp............................ 20,276 1,860,323
NUMBER OF MARKET SHARES VALUE --------- ------------ Linear Technology Corp................................. 61,000 $ 2,394,250 Maxim Integrated Products, Inc.*....................... 80,000 3,080,000 Medic Computer Systems, Inc.*.......................... 13,000 786,500 Microchip Technology, Inc.*............................ 48,900 1,784,850 Minnesota Mining & Mfg. Co............................. 16,490 1,092,462 Motorola, Inc. ........................................ 34,000 1,938,000 Network Appliance, Inc.*............................... 10,000 401,250 Network Equipment Tech., Inc.*......................... 20,500 561,187 Parametric Technology Co.*............................. 15,000 997,500 Philips Electronics NV(U.S.)........................... 24,000 861,000 Pitney Bowes, Inc...................................... 26,964 1,267,308 Railtex, Inc.*......................................... 48,000 1,008,000 Raytheon Co............................................ 26,576 1,255,717 S3, Inc.*.............................................. 40,000 705,000 Softkey Int'l., Inc.*.................................. 35,000 809,375 Sun Microsystems, Inc.*................................ 100,000 4,562,500 Tellabs, Inc.*......................................... 41,000 1,517,000 Teltrend, Inc.*........................................ 12,600 589,050 Tencor Instruments*.................................... 14,000 341,250 Tracor, Inc.*.......................................... 5,000 72,500 Triquint Semiconductor Inc.*........................... 27,000 364,500 U.S. Robotics Corp.*................................... 6,000 526,500 Xerox Corp............................................. 9,300 1,274,100 ------------ 73,676,033 ------------ Utilities (0.4%): Pinnacle West Capital Corp............................. 41,900 1,204,625 Tenneco, Inc........................................... 21,400 1,061,975 ------------ 2,266,600 ------------ Total Active Portion Common Stock (Cost: $160,295,667) 39.3%............................. 209,437,777 ------------
- ------- * Non-income producing security.
DISCOUNT FACE AMORTIZED RATE MATURITY AMOUNT COST -------- -------- ----------- ------------ ACTIVE PORTION: SHORT-TERM DEBT SECURITIES: U.S. Government (0.1%): U.S. Treasury Bill................. 4.23% 01/25/96 $ 90,000 $ 89,725 ------------ Commercial Paper (1.0%): Dynamic Funding.................... 6.10 01/02/96 832,000 831,576 Hershey Foods Corp................. 5.80 01/02/96 3,805,000 3,803,161 Triple A-1 Funding................. 5.85 01/05/96 950,000 949,072 ------------ 5,583,809 ------------ TOTAL SHORT-TERM DEBT SECURITIES (Cost: $5,673,534) 1.1%.......................................... 5,673,534 ------------ TOTAL ACTIVE SECURITIES (Cost: $165,969,201) 40.4%....................................... 215,111,311 ------------ TOTAL INVESTMENTS (Cost: $407,562,323) 100.0%...................................... $532,545,461 ============
The accompanying notes are an integral part of these financial statements. 15 MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES DECEMBER 31, 1995
NUMBER OF MARKET SHARES VALUE --------- ----------- COMMON STOCKS: 3Com Corp................................................. 1,500 $ 69,937 Abbott Laboratories....................................... 7,000 292,250 Advanced Micro Devices, Inc............................... 900 14,850 Aetna Life & Casualty Co.................................. 1,000 69,250 Ahmanson (H.F.) & Co...................................... 1,000 26,500 Air Products & Chemicals Corp............................. 1,000 52,750 Airtouch Communications, Inc.............................. 4,400 124,300 Alberto Culver Co. Cl B................................... 200 6,875 Albertson's, Inc.......................................... 2,200 72,325 Alcan Aluminum Ltd........................................ 2,000 62,250 Alco Standard Corp........................................ 1,000 45,625 Alexander & Alexander Svcs., Inc.......................... 400 7,600 Allergan, Inc............................................. 600 19,500 Allied Signal, Inc........................................ 2,500 118,750 Allstate Corp............................................. 4,000 164,500 Alltel Corp............................................... 1,700 50,150 Aluminum Co. of America................................... 1,600 84,600 Alza Corp................................................. 700 17,325 Amdahl Corp............................................... 1,100 9,350 Amerada Hess Corp......................................... 800 42,400 American Brands, Inc...................................... 1,600 71,400 American Electric Power Co................................ 1,700 68,850 American Express Co....................................... 4,300 177,912 American General Corp..................................... 1,800 62,775 American Greetings Corp. Cl A............................. 700 19,337 American Home Products Corp............................... 2,800 271,600 American Int'l. Group, Inc................................ 4,200 388,500 American Stores Co........................................ 1,300 34,775 Ameritech Corp............................................ 4,900 289,100 Amgen, Inc................................................ 2,400 142,500 Amoco Corp................................................ 4,400 316,250 Amp, Inc.................................................. 1,900 72,912 AMR Corp.................................................. 700 51,975 Andrew Corp............................................... 300 11,475 Anheuser Busch Cos., Inc.................................. 2,300 153,812 Apple Computer, Inc....................................... 1,100 35,062 Applied Materials, Inc.................................... 1,600 63,000 Archer Daniels Midland Co................................. 4,700 84,600 Armco, Inc................................................ 900 5,287 Armstrong World Inds., Inc................................ 300 18,600 Asarco, Inc............................................... 400 12,800 Ashland, Inc.............................................. 600 21,075 AT&T Corp................................................. 14,100 912,975 Atlantic Richfield Co..................................... 1,400 155,050 Autodesk, Inc............................................. 400 13,700 Automatic Data Processing, Inc............................ 1,300 96,525 Avery Dennison Corp....................................... 500 25,062 Avon Products, Inc........................................ 600 45,225 Baker Hughes, Inc......................................... 1,300 31,687 Ball Corp................................................. 300 8,250 Bally Entertainment Corp.................................. 400 5,600 Baltimore Gas & Electric Co............................... 1,300 37,050 Banc One Corp............................................. 3,500 132,125 Bank of Boston Corp....................................... 1,000 46,250 Bank of New York, Inc..................................... 1,800 87,750 BankAmerica Corp.......................................... 3,300 213,675 Bankers Trust New York Corp............................... 700 46,550 Bard (C.R.), Inc.......................................... 500 16,125 Barnett Banks, Inc........................................ 900 53,100 Barrick Gold Corp......................................... 3,100 81,762 Bausch & Lomb, Inc........................................ 500 19,812 Baxter International, Inc................................. 2,500 104,687 Becton Dickinson & Co..................................... 600 45,000 Bell Atlantic Corp........................................ 3,900 260,812
NUMBER OF MARKET SHARES VALUE --------- ----------- BellSouth Corp............................................ 8,800 $ 382,800 Bemis Co.................................................. 500 12,812 Beneficial Corp........................................... 500 23,312 Bethlehem Steel Corp...................................... 1,000 14,000 Beverly Enterprises, Inc.................................. 900 9,562 Biomet, Inc............................................... 1,000 17,875 Black & Decker Corp....................................... 800 28,200 Block (H & R), Inc........................................ 900 36,450 Boatmen's Bancshares, Inc................................. 1,100 44,962 Boeing Co................................................. 3,000 235,125 Boise Cascade Corp........................................ 400 13,850 Boston Scientific Corp.................................... 1,400 68,950 Briggs & Stratton Corp.................................... 300 13,012 Bristol-Myers Squibb Co................................... 4,500 386,437 Brown Group, Inc.......................................... 200 2,850 Brown-Forman Corp. Cl B................................... 600 21,900 Browning Ferris Inds., Inc................................ 1,900 56,050 Brunswick Corp............................................ 900 21,600 Burlington Northern Santa Fe.............................. 1,301 101,478 Burlington Resources, Inc................................. 1,100 43,175 Cabletron Systems, Inc.................................... 600 48,600 Campbell Soup Co.......................................... 2,200 132,000 Capital Cities/ABC, Inc................................... 1,400 172,725 Carolina Power & Light Co................................. 1,400 48,300 Caterpillar, Inc.......................................... 1,800 105,750 Centex Corp............................................... 300 10,425 Central & South West Corp................................. 1,700 47,387 Ceridian Corp............................................. 600 24,750 Champion International Corp............................... 900 37,800 Charming Shoppes, Inc..................................... 900 2,587 Chase Manhattan Bank...................................... 1,600 97,000 Chemical Banking Corp..................................... 2,200 129,250 Chevron Corp.............................................. 5,800 304,500 Chrysler Corp............................................. 3,400 188,275 Chubb Corp................................................ 800 77,400 CIGNA Corp................................................ 700 72,275 Cincinnati Milacron, Inc.................................. 300 7,875 Cinergy Corp.............................................. 1,400 42,881 Circuit City Stores, Inc.................................. 900 24,862 Cisco Systems, Inc........................................ 2,400 179,100 Citicorp.................................................. 3,800 255,550 Clorox Co................................................. 500 35,812 Coastal Corp.............................................. 900 33,525 Coca-Cola Co.............................................. 11,100 824,175 Colgate-Palmolive Co...................................... 1,300 91,325 Columbia Gas System, Inc.................................. 400 17,550 Columbia HCA Healthcare Corp.............................. 3,900 197,925 Comcast Corp. Cl A........................................ 2,100 38,193 Comerica, Inc............................................. 1,000 40,000 Community Psychiatric Centers............................. 400 4,900 Compaq Computer Corp...................................... 2,400 115,200 Computer Associates Intl., Inc............................ 2,100 119,437 Computer Sciences Corp.................................... 500 35,125 Conagra, Inc.............................................. 2,100 86,625 Conrail, Inc.............................................. 700 49,000 Consolidated Edison Co NY,Inc............................. 2,100 67,200 Consolidated Freightways, Inc............................. 400 10,600 Consolidated Natural Gas Co............................... 800 36,300 Cooper Industries......................................... 1,000 36,750 Cooper Tire & Rubber Co................................... 700 17,237 Coors (Adolph) Co. Cl B................................... 300 6,637 CoreStates Financial Corp................................. 1,200 45,450 Corning, Inc.............................................. 2,000 64,000 CPC International, Inc.................................... 1,300 89,212 Crane Co.................................................. 300 11,062
The accompanying notes are an integral part of these financial statements. 16 MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED) DECEMBER 31, 1995
NUMBER OF MARKET SHARES VALUE --------- ---------- Cray Research, Inc......................................... 200 $ 4,950 Crown Cork & Seal Co., Inc................................. 800 33,400 CSX Corp................................................... 1,800 82,125 CUC International, Inc..................................... 1,600 54,600 Cummins Engine, Inc........................................ 400 14,800 Cyprus Amax Minerals Co.................................... 800 20,900 Dana Corp.................................................. 900 26,325 Darden Restaurants, Inc.................................... 1,400 16,625 Data General Corp.......................................... 300 4,125 Dayton Hudson Corp......................................... 600 45,000 Dean Witter Discover & Co.................................. 1,500 70,500 Deere & Co................................................. 2,300 81,075 Delta Air Lines, Inc....................................... 500 36,937 Deluxe Corp................................................ 700 20,300 Dial Corp.................................................. 800 23,700 Digital Equipment Corp..................................... 1,300 83,362 Dillard Dept. Stores, Inc.................................. 1,000 28,500 Dominion Resources, Inc.................................... 1,500 61,875 Donnelley (R.R.) & Sons Co. ............................... 1,400 55,125 Dover Corp................................................. 1,000 36,875 Dow Chemical Co............................................ 2,300 161,862 Dow Jones & Co., Inc....................................... 900 35,887 Dresser Industries, Inc.................................... 1,600 39,000 DSC Communications Corp.................................... 1,000 36,875 DTE Energy Co.............................................. 1,300 44,850 Du Pont (E.I.) De Nemours.................................. 4,900 342,387 Duke Power Co.............................................. 1,800 85,275 Dun & Bradstreet Corp...................................... 1,500 97,125 Eastern Enterprises........................................ 200 7,050 Eastman Chemical Co........................................ 700 43,837 Eastman Kodak Co........................................... 3,000 201,000 Eaton Corp................................................. 700 37,537 Echlin, Inc................................................ 500 18,250 Echo Bay Mines, Ltd........................................ 1,100 11,412 Ecolab, Inc................................................ 600 18,000 EG&G, Inc.................................................. 500 12,125 Emerson Electric Co. ...................................... 2,000 163,500 Engelhard Corp. ........................................... 1,300 28,275 Enron Corp................................................. 2,200 83,875 Enserch Corp............................................... 600 9,750 Entergy Corp............................................... 2,000 58,500 Exxon Corp................................................. 11,000 881,375 Federal Express Corp....................................... 500 36,937 Federal Home Loan Mtge Corp................................ 1,600 133,600 Federal National Mtge Assn................................. 2,400 297,900 Federal Paper Board Co..................................... 400 20,750 Federated Department Stores................................ 1,800 49,050 First Bank System, Inc..................................... 1,200 59,550 First Chicago NBD Corp..................................... 2,848 112,496 First Data Corp............................................ 2,000 133,750 First Interstate Bancorp................................... 700 95,550 First Union Corp. ......................................... 2,645 147,128 Fleet Financial Group, Inc................................. 2,181 88,875 Fleetwood Enterprises, Inc................................. 400 10,300 Fleming Cos., Inc.......................................... 300 6,187 Fluor Corp................................................. 700 46,200 FMC Corp................................................... 300 20,287 Ford Motor Co.............................................. 9,500 275,500 Foster Wheeler Corp........................................ 400 17,000 FPL Group, Inc............................................. 1,600 74,200 Freeport-McMoran Copper Cl B............................... 1,800 50,625 Fruit of the Loom, Inc..................................... 700 16,975 Gannett, Inc............................................... 1,200 73,650 Gap, Inc................................................... 1,300 54,600 General Dynamics Corp...................................... 600 35,475
NUMBER OF MARKET SHARES VALUE --------- ----------- General Electric Co....................................... 14,800 $ 1,065,653 General Mills, Inc........................................ 1,400 80,850 General Motors Corp....................................... 6,600 348,975 General Public Utilities Corp............................. 1,100 37,400 General Re Corp........................................... 700 108,500 General Signal Corp....................................... 400 12,950 Genuine Parts Co.......................................... 1,100 45,100 Georgia Pacific Corp...................................... 800 54,900 Giant Food, Inc........................................... 500 15,750 Giddings & Lewis, Inc..................................... 300 4,950 Gillette Co............................................... 3,900 203,287 Golden West Financial Corp................................ 500 27,625 Goodrich (B.F.) Co........................................ 200 13,625 Goodyear Tire & Rubber Co................................. 1,400 63,525 Grainger (W.W.), Inc...................................... 500 33,125 Great Atl. & Pac. Tea Co.................................. 300 6,900 Great Lakes Chemical Corp................................. 600 43,200 Great Western Financial Corp.............................. 1,200 30,600 GTE Corp. ................................................ 8,600 378,400 Halliburton Co............................................ 1,000 50,625 Handleman Co.............................................. 300 1,725 Harcourt General, Inc..................................... 600 25,125 Harland (John H.) Co...................................... 300 6,262 Harnischfeger Inds., Inc.................................. 400 13,300 Harrah's Entertainment, Inc............................... 900 21,825 Harris Corp............................................... 300 16,387 Hasbro, Inc. ............................................. 800 24,800 Heinz (H.J.) Co........................................... 3,300 109,312 Helmerich & Payne, Inc.................................... 200 5,950 Hercules, Inc............................................. 1,000 56,375 Hershey Foods Corp........................................ 700 45,500 Hewlett-Packard Co........................................ 4,500 376,875 Hilton Hotels Corp........................................ 400 24,600 Home Depot, Inc........................................... 4,200 201,075 Homestake Mining Co....................................... 1,200 18,750 Honeywell, Inc............................................ 1,100 53,487 Household International, Inc.............................. 900 53,212 Houston Industries, Inc................................... 2,300 55,775 Humana, Inc. ............................................. 1,400 38,325 Illinois Tool Works, Inc.................................. 1,000 59,000 Inco, Ltd................................................. 1,100 36,575 Ingersoll Rand Co......................................... 1,000 35,125 Inland Steel, Inc......................................... 400 10,050 Intel Corp................................................ 7,300 414,275 Intergraph Corp........................................... 400 6,300 International Paper Co.................................... 2,300 87,112 Interpublic Group of Cos., Inc............................ 700 30,362 Intl. Business Machines Corp.............................. 5,000 458,750 Intl. Flavors & Fragrances................................ 1,000 48,000 ITT Corp.................................................. 1,000 53,000 ITT Hartford Group, Inc. ................................. 1,000 48,375 ITT Industries............................................ 1,000 24,000 James River Corp. of VA................................... 700 16,887 Jefferson-Pilot Corp...................................... 600 27,900 Johnson & Johnson......................................... 5,700 488,062 Johnson Controls, Inc..................................... 400 27,500 Jostens, Inc.............................................. 300 7,275 Kaufman & Broad Home Corp................................. 300 4,462 Kellogg Co. .............................................. 1,900 146,775 Kerr-McGee Corp........................................... 500 31,750 KeyCorp................................................... 2,100 76,125 Kimberly-Clark Corp....................................... 2,514 208,033 King World Productions, Inc............................... 300 11,662 Kmart Corp................................................ 4,100 29,725 Knight-Ridder, Inc........................................ 400 25,000
The accompanying notes are an integral part of these financial statements. 17 MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED) DECEMBER 31, 1995
NUMBER OF MARKET SHARES VALUE --------- ----------- Kroger Corp............................................... 1,100 $ 41,250 Laidlaw, Inc. Cl B........................................ 2,600 26,650 Lilly (Eli) & Co.......................................... 4,720 265,500 Limited (The), Inc........................................ 3,200 55,600 Lincoln National Corp..................................... 900 48,375 Liz Claiborne, Inc........................................ 700 19,425 Lockheed Martin Corp...................................... 1,800 142,200 Loews Corp................................................ 1,000 78,375 Longs Drug Stores, Inc.................................... 200 9,575 Loral Corp................................................ 1,500 53,062 Louisiana Land & Exploration.............................. 300 12,862 Louisiana-Pacific Corp.................................... 1,000 24,250 Lowe's Companies, Inc..................................... 1,400 46,900 LSI Logic Corp............................................ 1,100 36,025 Luby's Cafeteria, Inc..................................... 200 4,450 Mallinckrodt Group, Inc................................... 700 25,462 Manor Care, Inc........................................... 600 21,000 Marriott International, Inc............................... 1,100 42,075 Marsh & McLennan Cos., Inc................................ 600 53,250 Masco Corp................................................ 1,400 43,925 Mattel, Inc............................................... 2,000 61,500 May Department Stores Co.................................. 2,200 92,950 Maytag Corp............................................... 1,000 20,250 MBNA Corp................................................. 1,300 47,937 McDermott International, Inc.............................. 500 11,000 McDonald's Corp........................................... 6,100 275,262 McDonnell Douglas Corp.................................... 1,000 92,000 McGraw-Hill Cos., Inc..................................... 400 34,850 MCI Communications Corp................................... 6,000 156,750 Mead Corp................................................. 500 26,125 Medtronic, Inc............................................ 2,000 111,750 Mellon Bank Corp.......................................... 1,300 69,875 Melville Corp............................................. 900 27,675 Mercantile Stores, Inc.................................... 300 13,875 Merck & Co., Inc.......................................... 10,900 716,675 Meredith Corp............................................. 200 8,375 Merrill Lynch & Co., Inc.................................. 1,600 81,600 Micron Technology, Inc.................................... 1,800 71,550 Microsoft Corp............................................ 5,200 456,300 Millipore Corp............................................ 400 16,450 Minnesota Mining & Mfg. Co................................ 3,700 245,125 Mobil Corp................................................ 3,500 392,000 Monsanto Co............................................... 1,000 122,500 Moore Corp., Ltd.......................................... 900 16,762 Morgan (J.P.) & Co., Inc.................................. 1,700 136,425 Morgan Stanley Group, Inc................................. 700 56,437 Morton International, Inc................................. 1,300 46,637 Motorola, Inc............................................. 5,200 296,400 NACCO Industries, Inc. Cl A............................... 100 5,550 Nalco Chemical Co......................................... 600 18,075 National City Corp........................................ 1,300 43,062 National Semiconductor Corp............................... 1,100 24,475 National Service Industries............................... 400 12,950 NationsBank Corp.......................................... 2,400 167,100 Navistar International Corp............................... 700 7,350 New York Times Co. Cl A................................... 900 26,662 Newell Co................................................. 1,400 36,225 Newmont Mining Corp....................................... 800 36,200 Niagara Mohawk Power Corp................................. 1,300 12,512 Nicor, Inc................................................ 400 11,000 Nike, Inc. Cl B........................................... 1,300 90,512 NorAm Energy Corp......................................... 1,100 9,762 Nordstrom, Inc............................................ 700 28,350 Norfolk Southern Corp..................................... 1,100 87,312 Northern States Power Co.................................. 600 29,475
NUMBER OF MARKET SHARES VALUE --------- ----------- Northern Telecom, Ltd..................................... 2,300 $ 98,900 Northrop Grumman Corp..................................... 400 25,600 Norwest Corp.............................................. 3,100 102,300 Novell, Inc............................................... 3,300 47,025 Nucor Corp................................................ 800 45,700 NYNEX Corp................................................ 3,800 205,200 Occidental Petroleum Corp................................. 2,800 59,850 Ogden Corp................................................ 400 8,550 Ohio Edison Co............................................ 1,400 32,900 Oneok, Inc................................................ 200 4,575 Oracle Corp............................................... 3,900 165,262 Oryx Energy Co............................................ 900 12,037 Outboard Marine Corp...................................... 200 4,075 Owens-Corning Fiberglass Corp............................. 500 22,437 Paccar, Inc............................................... 300 12,637 Pacific Enterprises....................................... 800 22,600 Pacific Gas & Electric Co................................. 3,800 107,825 Pacific Telesis Group..................................... 3,800 127,775 PacifiCorp................................................ 2,500 53,125 Pall Corp................................................. 1,000 26,875 Panhandle Eastern Corp.................................... 1,300 36,237 Parker Hannifin Corp...................................... 700 23,975 Peco Energy Co............................................ 2,000 60,250 Penney (J.C.) Co., Inc.................................... 2,000 95,250 Pennzoil Co............................................... 400 16,900 Peoples Energy Corp....................................... 300 9,525 Pep Boys-Manny, Moe & Jack................................ 500 12,812 Pepsico, Inc.............................................. 7,000 391,125 Perkin-Elmer Corp......................................... 400 15,100 Pfizer, Inc............................................... 5,600 352,800 Pharmacia & Upjohn, Inc................................... 4,505 174,568 Phelps Dodge Corp......................................... 600 37,350 Phillip Morris Cos., Inc.................................. 7,400 669,700 Phillips Petroleum Co..................................... 2,300 78,487 Pioneer Hi-Bred Intl., Inc................................ 700 38,937 Pitney Bowes, Inc......................................... 1,300 61,100 Pittston Services Group................................... 400 12,550 Placer Dome, Inc.......................................... 2,100 50,662 PNC Bank Corp............................................. 2,000 64,500 Polaroid Corp............................................. 400 18,950 Potlatch Corp............................................. 300 12,000 PP&L Resources, Inc....................................... 1,400 35,000 PPG Industries, Inc....................................... 1,700 77,775 Praxair, Inc.............................................. 1,200 40,350 Premark International, Inc................................ 500 25,312 Price/Costco, Inc......................................... 1,700 25,925 Proctor & Gamble Co....................................... 6,100 506,300 Providian Corp............................................ 800 32,600 Public Svc. Enterprise Group.............................. 2,200 67,375 Pulte Corp................................................ 200 6,725 Quaker Oats Co............................................ 1,200 41,400 Ralston Purina Co......................................... 900 56,137 Raychem Corp.............................................. 400 22,750 Raytheon Co............................................... 2,100 99,225 Reebok International Ltd.................................. 700 19,775 Republic New York Corp.................................... 500 31,062 Reynold's Metals Co....................................... 600 34,125 Rite-Aid Corp............................................. 700 23,975 Roadway Services, Inc..................................... 300 14,663 Rockwell International Corp............................... 1,900 100,462 Rohm & Haas Co............................................ 600 38,625 Rowan Cos., Inc........................................... 800 7,900 Royal Dutch Petroleum Co.................................. 4,800 677,400 Rubbermaid, Inc........................................... 1,400 35,700 Russell Corp.............................................. 300 8,325
The accompanying notes are an integral part of these financial statements. 18 MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED) DECEMBER 31, 1995
NUMBER OF MARKET SHARES VALUE --------- ----------- Ryan's Family Steak Houses Inc. .......................... 500 $ 3,500 Ryder System, Inc. ....................................... 700 17,325 Safeco Corp. ............................................. 1,100 37,950 Safety Kleen Corp. ....................................... 500 7,812 Salomon, Inc. ............................................ 900 31,950 Santa Fe Energy Res., Inc. ............................... 800 7,700 Sante Fe Pacific Gold Corp. .............................. 1,200 14,550 Sara Lee Corp. ........................................... 4,300 137,062 SBC Communications, Inc. ................................. 5,400 310,500 SCE Corp. ................................................ 3,900 69,225 Schering-Plough Corp. .................................... 3,300 180,675 Schlumberger, Ltd. ....................................... 2,100 145,425 Scientific-Atlanta, Inc. ................................. 700 10,500 Seagram, Ltd. ............................................ 3,300 114,262 Sears Roebuck & Co. ...................................... 3,500 136,500 Service Corp. International............................... 900 39,600 Shared Medical Systems Corp. ............................. 200 10,875 Sherwin-Williams Co. ..................................... 800 32,600 Shoney's, Inc. ........................................... 400 4,100 Sigma Aldrich Corp. ...................................... 400 19,800 Silicon Graphics, Inc. ................................... 1,400 38,500 Snap-On, Inc. ............................................ 400 18,100 Sonat, Inc. .............................................. 800 28,500 Southern Co. ............................................. 5,900 145,287 Southwest Airlines Co. ................................... 1,300 30,225 Springs Industries, Inc. Cl A............................. 200 8,275 Sprint Corp. ............................................. 3,100 123,612 St. Jude Medical, Inc. ................................... 600 25,800 St. Paul Companies (The).................................. 700 38,937 Stanley Works............................................. 400 20,600 Stone Container Corp. .................................... 800 11,500 Stride Rite Corp. ........................................ 400 3,000 Sun Co., Inc. ............................................ 700 19,162 Sun Microsystems, Inc. ................................... 1,700 77,562 Suntrust Banks, Inc. ..................................... 1,000 68,500 Supervalu, Inc. .......................................... 600 18,900 Sysco Corp. .............................................. 1,600 52,000 Tandem Computers, Inc. ................................... 1,000 10,625 Tandy Corp. .............................................. 600 24,900 Tektronix, Inc. .......................................... 300 14,737 Tele-Communications, Inc. Cl A............................ 5,800 115,275 Teledyne, Inc. ........................................... 500 12,812 Tellabs, Inc. ............................................ 800 29,600 Temple-Inland, Inc. ...................................... 500 22,062 Tenet Healthcare Corp. ................................... 1,800 37,350 Tenneco, Inc. ............................................ 1,600 79,400 Texaco, Inc. ............................................. 2,300 180,550 Texas Instruments, Inc. .................................. 1,700 87,975 Texas Utilities Co. ...................................... 2,000 82,000 Textron, Inc. ............................................ 700 47,250 The Walt Disney Co. ...................................... 4,600 271,400 Thomas & Betts Corp. ..................................... 200 14,750 Time Warner, Inc. ........................................ 3,400 128,775 Times Mirror Co. Cl A..................................... 1,000 33,875 Timken Co. ............................................... 300 11,475 TJX Cos., Inc. ........................................... 600 11,325 Torchmark Corp. .......................................... 600 27,150
NUMBER OF MARKET SHARES VALUE --------- ----------- Toys "R" Us, Inc. ........................................ 2,400 $ 52,200 Transamerica Corp. ....................................... 600 43,725 Travelers Group, Inc. .................................... 2,800 176,050 Tribune Co. .............................................. 600 36,675 Trinova Corp. ............................................ 300 8,587 TRW, Inc. ................................................ 600 46,500 Tyco Labs, Inc. .......................................... 1,400 49,875 U.S. Bancorp.............................................. 900 30,262 U.S. Life Corp. .......................................... 300 8,962 U.S. Surgical Corp. ...................................... 500 10,687 U.S. West Communications Group............................ 4,200 150,150 U.S. West Media Group..................................... 4,200 79,800 Unicom Corp. ............................................. 1,900 62,225 Unilever N.V. ............................................ 1,400 197,050 Union Camp Corp. ......................................... 600 28,575 Union Carbide Corp. ...................................... 1,200 45,000 Union Electric Co. ....................................... 900 37,575 Union Pacific Corp. ...................................... 1,800 118,800 Unisys Corp. ............................................. 1,500 8,437 United Healthcare Corp. .................................. 1,500 98,250 United Technologies Corp. ................................ 1,100 104,362 Unocal Corp. ............................................. 2,200 64,075 UNUM Corp. ............................................... 600 33,000 US Healthcare, Inc. ...................................... 1,400 65,100 USAir Group, Inc. ........................................ 600 7,950 USF&G Corp. .............................................. 1,000 16,875 UST, Inc. ................................................ 1,700 56,737 USX-Marthon Group......................................... 2,500 48,750 USX-U.S. Steel Group, Inc. ............................... 700 21,525 V F Corp. ................................................ 600 31,650 Varity Corp. ............................................. 400 14,850 Viacom, Inc. ............................................. 3,200 151,585 W.R. Grace & Co. ......................................... 900 53,212 Wachovia Corp. ........................................... 1,500 68,625 Wal-Mart Stores, Inc. .................................... 20,400 456,450 Walgreen Co. ............................................. 2,200 65,725 Warner-Lambert Co. ....................................... 1,200 116,550 Wells Fargo & Co. ........................................ 400 86,400 Wendy's International, Inc. .............................. 900 19,125 Western Atlas, Inc. ...................................... 500 25,250 Westinghouse Electric Corp. .............................. 3,500 57,750 Westvaco Corp. ........................................... 900 24,975 Weyerhaeuser Co. ......................................... 1,800 77,850 Whirlpool Corp. .......................................... 700 37,275 Whitman Corp. ............................................ 900 20,925 Willamette Industries, Inc. .............................. 500 28,125 Williams Cos., Inc. ...................................... 900 39,487 Winn-Dixie Stores, Inc. .................................. 1,300 47,937 WMX Technologies, Inc. ................................... 4,300 128,462 Woolworth Corp. .......................................... 1,200 15,600 Worthington Industries, Inc. ............................. 800 16,650 Wrigley (Wm.) Jr. Co. .................................... 1,000 52,500 Xerox Corp. .............................................. 1,000 137,000 Yellow Corp. ............................................. 200 2,475 ----------- TOTAL COMMON STOCKS (Cost: $32,094,801) 99.7%................................ 40,679,078 -----------
The accompanying notes are an integral part of these financial statements. 19 MUTUAL OF AMERICA INVESTMENT CORPORATION (EQUITY INDEX FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED) DECEMBER 31, 1995
DISCOUNT FACE MARKET RATE MATURITY AMOUNT VALUE -------- -------- ------- ----------- SHORT-TERM DEBT SECURITIES: U.S. Treasury (0.3%): U.S. Treasury Bills..................... 5.25% 05/02/96 $10,000 $ 9,826 U.S. Treasury Bills..................... 5.62 05/02/96 30,000 29,474 U.S. Treasury Bills..................... 5.33 05/02/96 10,000 9,825 U.S. Treasury Bills..................... 5.32 05/02/96 10,000 9,826 U.S. Treasury Bills..................... 5.44 06/27/96 15,000 14,706 U.S. Treasury Bills..................... 5.31 06/27/96 50,000 48,748 U.S. Treasury Bills..................... 5.30 07/25/96 10,000 9,710 U.S. Treasury Bills..................... 5.25 07/25/96 10,000 9,710 ----------- TOTAL SHORT-TERM DEBT SECURITIES (Cost: $141,672) 0.3%................... 141,825 ----------- TOTAL INVESTMENTS (Cost: $32,236,473) 100.0%.............. $40,820,903 ===========
The accompanying notes are an integral part of these financial statements. 20 MUTUAL OF AMERICA INVESTMENT CORPORATION (BOND FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES DECEMBER 31, 1995
COUPON FACE MARKET RATE MATURITY AMOUNT VALUE ------ -------- ----------- ------------ LONG-TERM DEBT SECURITIES: Governments/Agencies (15.3%): City of New York.................... 10.00% 08/01/05 $ 1,000,000 $ 1,150,904 Connecticut Housing Fin. Auth....... 7.63 05/15/21 2,500,000 2,550,475 Federal Home Loan Mtge Corp......... 8.50 02/15/21 3,500,000 3,614,135 Republic of Iceland................. 6.13 02/01/04 5,000,000 4,969,900 Republic of Ireland................. 7.13 07/15/02 2,000,000 2,131,142 Republic of Ireland................. 7.88 12/01/01 3,000,000 3,296,427 San Bernardino County, Calif........ 7.71(a) 08/01/13 39,500,000 10,704,105 State of California................. 8.15 09/01/01 1,000,000 1,101,630 Suffolk County, New York............ 5.80 11/01/04 4,000,000 3,903,280 Suffolk County, New York............ 5.88 11/01/05 4,000,000 3,890,480 Swedish Export Credit............... 9.88 03/15/38 6,000,000 6,662,250 Tennessee Valley Authority.......... 6.88 12/15/43 2,500,000 2,478,895 ------------ 46,453,623 ------------ Basic Materials (0.7%): Fletcher Challenge Ltd.............. 9.00 09/15/99 2,000,000 2,195,322 ------------ Consumer, Cyclical (12.1%): Centex Corp......................... 7.38 06/01/05 5,000,000 5,136,970 Costco Wholesale Corp............... 5.75 05/15/02 5,000,000 4,756,250 Dillard Dept. Stores, Inc........... 9.63 09/15/97 1,000,000 1,067,659 Fruit of the Loom, Inc.............. 7.88 10/15/99 1,000,000 1,059,535 Gannett, Inc........................ 5.85 05/01/00 3,500,000 3,512,617 General Motors Corp................. 9.75 05/15/99 1,500,000 1,525,368 Nordstrom, Inc...................... 8.88 02/15/98 1,500,000 1,596,258 Penney (J.C.) Co., Inc.............. 10.00 10/15/97 1,500,000 1,611,150 Penske Truck Leasing Co. LP......... 8.25 11/01/99 5,000,000 5,382,300 Shopko Stores, Inc.................. 9.00 11/15/04 5,000,000 5,691,515 Valassis Communication, Inc......... 9.55 12/01/03 5,000,000 5,137,110 ------------ 36,476,732 ------------ Consumer, Non-Cyclical (8.0%): McKesson Corp....................... 8.63 02/01/98 1,000,000 1,061,947 Ralston Purina Co................... 8.63 02/15/22 7,500,000 8,904,225 Rhone-Poulenc SA.................... 7.75 01/15/02 3,000,000 3,218,475 Rhone-Poulenc SA.................... 6.75 10/15/99 2,500,000 2,556,357 Rite-Aid Corp....................... 6.88 08/15/13 5,000,000 4,889,695 Whitman Corp........................ 7.63 06/15/15 3,500,000 3,711,582 ------------ 24,342,281 ------------ Energy (2.7%): BP North America, Inc............... 9.88 03/15/04 2,000,000 2,501,106 Tosco Corp.......................... 8.25 05/15/03 5,000,000 5,553,220 ------------ 8,054,326 ------------ Financial (26.5%): Aristar, Inc........................ 8.88 08/15/98 2,000,000 2,153,322 BankAmerica Corp.................... 7.75 07/15/02 2,500,000 2,716,535 Berkley (W.R.) Corp................. 8.70 01/01/22 5,000,000 5,860,610 British Gas Financial, Inc.......... 8.75 03/15/98 3,000,000 3,189,864 Chase Manhattan Bank................ 7.50 12/01/97 5,000,000 5,175,395 CIT Group Holdings, Inc............. 8.75 04/15/98 2,000,000 2,134,900 Citicorp............................ 10.75 12/15/15 4,359,000 4,462,569 Fairfax Financial Holdings.......... 8.25 10/01/15 2,500,000 2,693,792 General Electric Capital Corp....... 8.75 05/21/07 7,500,000 9,106,050 General Motors Acceptance Corp...... 7.88 03/04/97 2,500,000 2,547,212
The accompanying notes are an integral part of these financial statements. 21 MUTUAL OF AMERICA INVESTMENT CORPORATION (BOND FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED) DECEMBER 31, 1995
COUPON FACE MAKET RATE MATURITY AMOUNT VALUE -------- -------- ---------- ------------ General Motors Acceptance Corp....... 8.38% 05/01/97 $5,000,000 $ 5,162,565 Heller Financial, Inc................ 9.13 08/01/99 2,000,000 2,203,922 Kemper Corp.......................... 8.80 11/01/98 2,500,000 2,671,107 Progressive Corp. of Ohio............ 10.00 12/15/00 1,500,000 1,754,446 Rodamco NV........................... 7.75 05/15/15 5,000,000 5,632,015 Roosevelt Fed Svgs & Ln Assn......... 10.13 04/15/18 3,000,000 3,260,253 Ryland Acceptance Corp............... 7.95 08/20/19 3,257,908 3,316,713 Sun America, Inc..................... 9.00 01/15/99 4,000,000 4,327,208 Sun America, Inc..................... 9.95 02/01/12 5,000,000 6,447,660 Vesta Insurance Group, Inc........... 8.75 07/15/25 5,000,000 5,469,380 ------------ 80,285,518 ------------ Industrial (1.0%): Union Pacific Corp................... 8.50 01/15/98 3,000,000 3,162,210 ------------ Technology (4.2%): McDonnell Douglas Corp............... 9.75 04/01/12 10,000,000 12,797,480 ------------ Utilities (22.8%): Bellsouth Telecommunication.......... 7.50 06/15/33 7,500,000 7,995,030 Big Rivers Electric Corp............. 9.50 02/15/17 8,000,000 8,919,720 Big Rivers Electric Corp............. 9.52 03/15/19 12,500,000 13,964,425 Big Rivers Electric Corp............. 10.70 09/15/17 10,000,000 11,268,480 Connecticut Yankee Atomic Pwr........ 12.00 06/01/00 4,186,000 4,382,712 Laclede Gas Co....................... 8.50 11/15/04 2,000,000 2,315,074 New York Telephone Co................ 6.70 11/01/23 2,500,000 2,456,877 Pacific Gas & Electric Co............ 8.75 01/01/01 2,000,000 2,223,318 Philadelphia Electric Co............. 7.13 08/15/23 5,000,000 4,966,850 Southern Union Co.................... 7.60 02/01/24 10,000,000 10,342,946 ------------ 68,835,432 ------------ TOTAL LONG-TERM DEBT SECURITIES (Cost: $264,955,856) 93.3%........... 282,602,924 ------------ SHORT-TERM DEBT SECURITIES: Basic Materials (0.8%): Dow Corning.......................... 8.38 11/01/96 2,500,000 2,557,652 ------------ Utilities (1.7%): Equitable Resources, Inc............. 8.25 07/01/96 2,000,000 2,024,602 Houston Lighting & Power Co.......... 8.63 01/15/96 2,000,000 2,001,596 PacifiCorp........................... 8.57 02/01/96 1,000,000 1,003,016 ------------ 5,029,214 ------------ DISCOUNT FACE AMORTIZED RATE MATURITY AMOUNT COST -------- -------- ---------- ------------ Commercial Paper (4.2%): Coca Cola............................ 5.72 01/05/96 3,195,000 3,191,954 Ford Motor Credit Corp............... 5.76 01/05/96 4,600,000 4,595,565 Sony Capital Corp.................... 5.80 01/03/96 4,785,000 4,781,905 ------------ 12,569,424 ------------ TOTAL SHORT-TERM DEBT SECURITIES (Cost: $20,084,896) 6.7%............. 20,156,290 ------------ TOTAL INVESTMENTS (Cost: $285,040,752) 100.0%.......... $302,759,214 ============
- ------- (a) Not a coupon rate; bond equivalent yield to maturity. The accompanying notes are an integral part of these financial statements. 22 MUTUAL OF AMERICA INVESTMENT CORPORATION (SHORT-TERM BOND FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES DECEMBER 31, 1995
COUPON FACE MARKET RATE MATURITY AMOUNT VALUE -------- -------- ---------- ---------- INTERMEDIATE-TERM DEBT SECURITIES: U.S. Government (41.0%): U.S. Treasury Note.................... 5.13% 06/30/98 $1,000,000 $ 997,500 ---------- Technology (4.3%): McDonnell Douglas Corp................ 8.63 04/01/97 100,000 103,519 ---------- Utilities (4.6%): Big Rivers Electric Corp.............. 9.50 02/15/17 100,000 111,497 ---------- TOTAL INTERMEDIATE-TERM DEBT SECURITIES (Cost: $1,172,902) 49.9%.............. 1,212,516 ---------- DISCOUNT FACE AMORTIZED RATE MATURITY AMOUNT COST -------- -------- ---------- ---------- SHORT-TERM DEBT SECURITIES: U.S. Government (41.1%): U.S. Treasury Note.................... 4.25 12/31/95 1,000,000 1,000,000 ---------- U.S. Government (5.0%): U.S. Treasury Bills................... 4.80 03/14/96 120,000 118,800 ---------- Commercial Paper (4.0%): Ford Motor Credit Corp................ 5.75 01/03/96 100,000 99,936 ---------- TOTAL SHORT-TERM DEBT SECURITIES (Cost: $1,218,736) 50.1%.............. 1,218,736 ---------- TOTAL INVESTMENTS (Cost: $2,391,638) 100.0%............. $2,431,252 ==========
The accompanying notes are an integral part of these financial statements. 23 MUTUAL OF AMERICA INVESTMENT CORPORATION (MID-TERM BOND FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES DECEMBER 31, 1995
COUPON FACE MARKET RATE MATURITY AMOUNT VALUE -------- -------- ----------- ----------- INTERMEDIATE-TERM DEBT SECURITIES: U.S. Government (42.8%): U.S. Treasury Note.................. 5.63% 11/30/00 $10,250,000 $10,352,500 ----------- Government-Other (2.4%): City of New York.................... 10.00 08/01/05 500,000 575,452 ----------- Basic Materials (2.1%): Monsanto Co......................... 6.00 07/01/00 500,000 503,401 ----------- Consumer, Cyclical (13.0%): Albertson's, Inc.................... 5.65 03/26/98 500,000 501,575 Costco Wholesale Corp............... 5.75 05/15/02 500,000 475,625 Fruit of the Loom, Inc.............. 7.88 10/15/99 600,000 635,721 Gannett, Inc........................ 5.85 05/01/00 500,000 501,802 Penske Truck Leasing Co. LP......... 8.25 11/01/99 500,000 538,230 Sears Roebuck & Co.................. 5.49 09/28/98 500,000 496,950 ----------- 3,149,903 ----------- Financial (11.0%): American Express Credit Corp........ 6.13 06/15/00 500,000 507,206 BankAmerica Corp.................... 7.75 07/15/02 500,000 543,307 Chemical Bank....................... 7.25 09/15/02 500,000 531,867 General Motors Acceptance Corp...... 8.38 05/01/97 250,000 258,128 Sun America, Inc.................... 9.00 01/15/99 500,000 540,901 Tenneco Credit Corp................. 9.63 08/15/01 240,000 278,635 ----------- 2,660,044 ----------- Industrial (3.2%): Comdisco, Inc....................... 7.75 09/01/99 750,000 790,851 ----------- Technology (1.1%): Lockheed Corp....................... 5.88 03/15/98 250,000 251,844 ----------- Utilities (22.8%): Alabama Power Co.................... 6.00 03/01/00 500,000 502,638 Baltimore Gas & Electric Co......... 6.13 07/01/03 750,000 752,389 Big Rivers Electric Corp............ 9.50 02/15/17 200,000 222,993 Commonwealth Edison Co.............. 7.50 01/01/01 500,000 505,805 Connecticut Light & Power Co........ 5.50 02/01/99 500,000 497,098 Connecticut Yankee Atomic Pwr....... 12.00 06/01/00 419,000 438,690 Iowa Illinois Gas & Electric........ 5.05 10/15/98 500,000 491,178 Pennsylvania Power & Light Co....... 6.00 06/01/00 750,000 749,945 Public Svc. Electric & Gas Co....... 7.88 11/01/01 750,000 810,327 Tenneco, Inc........................ 8.00 11/15/99 500,000 535,085 ----------- 5,506,148 ----------- TOTAL INTERMEDIATE-TERM DEBT SECURITIES (Cost: $22,990,109) 98.4%........... 23,790,143 ----------- DISCOUNT FACE AMORTIZED RATE MATURITY AMOUNT COST -------- -------- ----------- ----------- SHORT-TERM DEBT SECURITIES: U.S. Government (0.4%): U.S. Treasury Bills................. 4.80 03/14/96 90,000 89,100 ----------- Commercial Paper (1.2%): Ford Motor Credit Corp.............. 5.75 01/03/96 300,000 299,808 ----------- TOTAL SHORT-TERM DEBT SECURITIES (Cost: $388,908) 1.6%............... 388,908 ----------- TOTAL INVESTMENTS (Cost: $23,379,017) 100.0%.......... $24,179,051 ===========
The accompanying notes are an integral part of these financial statements. 24 MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES DECEMBER 31, 1995
NUMBER OF MARKET SHARES VALUE --------- ------------ COMMON STOCKS: Basic Materials (4.4%): Calgon Carbon Corp..................................... 78,300 $ 939,600 Georgia Pacific Corp................................... 30,000 2,058,750 Homestake Mining Co.................................... 70,000 1,093,750 Inland Steel, Inc...................................... 30,100 756,263 LTV Corp.*............................................. 130,000 1,787,500 Methanex Corp.*........................................ 110,000 804,375 Newmont Mining Corp.................................... 30,400 1,375,600 USX-U.S. Steel Group, Inc.............................. 100,000 3,075,000 ------------ 11,890,838 ------------ Consumer, Cyclical (8.0%): AMR Corp.*............................................. 30,000 2,227,500 Centex Corp............................................ 50,000 1,737,500 Cooper Industries...................................... 31,200 1,146,600 Eastman Kodak Co....................................... 22,500 1,507,500 Federal-Mogul Corp..................................... 120,000 2,355,000 Fleetwood Enterprises, Inc............................. 30,000 772,500 General Electric Co.................................... 15,000 1,080,000 General Motors Corp.................................... 108,000 5,710,500 Offshore Logistics, Inc.*.............................. 60,000 757,500 Rollins Truck Leasing Co............................... 98,000 1,090,250 Sears Roebuck & Co..................................... 20,000 780,000 Terra Industries, Inc.................................. 65,000 918,125 TRW, Inc............................................... 25,000 1,937,500 ------------ 22,020,475 ------------ Consumer, Non-Cyclical (1.3%): Columbia HCA Healthcare Corp........................... 20,000 1,015,000 Pepsi-Cola Puerto Rico Bottling Co..................... 50,000 575,000 Pharmacia & Upjohn, Inc................................ 52,700 2,042,125 ------------ 3,632,125 ------------ Energy (12.5%): Anadarko Petroleum Corp................................ 30,000 1,623,750 Chieftan International, Inc.*.......................... 90,000 1,597,500 Dresser Industries, Inc................................ 110,000 2,681,250 Enron Oil & Gas Co..................................... 101,000 2,424,000 Ente Nazionale Idrocarburi ADR*........................ 80,000 2,740,000 Lomak Petroleum, Inc................................... 97,000 945,750 Nabors Industries, Inc.*............................... 280,000 3,115,000 Occidental Petroleum Corp.............................. 105,000 2,244,375 Oceaneering Int'l, Inc.*............................... 210,000 2,703,750 Parker & Parsley Petroleum............................. 51,900 1,141,800 Pride Petroleum Svcs., Inc............................. 155,000 1,646,875 Seagull Energy Corp.*.................................. 40,000 890,000 Unocal Corp............................................ 105,000 3,058,125 USX-Marthon Group...................................... 235,000 4,582,500 Western Atlas, Inc.*................................... 56,000 2,828,000 ------------ 34,222,675 ------------ Financial (5.4%): Allstate Corp.......................................... 45,000 1,850,625 First Chicago NBD Corp................................. 32,580 1,286,910 Fleet Financial Group, Inc............................. 35,000 1,426,250
NUMBER OF MARKET SHARES VALUE --------- ------------ Horace Mann Educators Corp............................. 80,000 $ 2,500,000 Midlantic Corp., Inc................................... 25,000 1,640,625 New Plan Realty Trust.................................. 80,000 1,740,000 PNC Bank Corp.......................................... 30,000 967,500 St. Paul Companies (The)............................... 60,200 3,348,625 ------------ 14,760,535 ------------ Industrial (10.7%): Anixter International, Inc.*........................... 120,000 2,235,000 Brockway Standard Holdings*............................ 40,000 620,000 Browning Ferris Inds., Inc............................. 80,000 2,360,000 Commercial Metals Co................................... 15,000 371,250 Covenant Transport, Inc. Cl A*......................... 45,500 546,000 Fluor Corp............................................. 56,300 3,715,800 Hanson PLC--ADR........................................ 250,000 3,812,500 Lafarge Corp........................................... 145,000 2,700,625 Manitowoc Company, Inc................................. 40,000 1,225,000 Sea Containers, Ltd. Cl A.............................. 85,000 1,476,875 Silicon Valley Group, Inc.*............................ 80,000 2,020,000 Tecumseh Products Co. Cl A............................. 19,000 983,250 TNT Freightways Corp................................... 35,000 704,375 Triad Systems Corp.*................................... 83,200 509,600 Vallen Corp.*.......................................... 30,000 588,750 Waste Management Intl. PLC*............................ 135,000 1,451,250 WMX Technologies, Inc.................................. 135,000 4,033,125 ------------ 29,353,400 ------------ Technology (5.5%): Alliance Semiconductor Corp.*.......................... 95,000 1,104,375 AT&T Corp.............................................. 96,700 6,261,325 GenCorp, Inc........................................... 185,000 2,266,250 Minnesota Mining & Mfg. Co............................. 25,000 1,656,250 Motorola, Inc.......................................... 25,000 1,425,000 Tandem Computers, Inc.*................................ 95,000 1,009,375 Varian Associates, Inc................................. 30,000 1,432,500 ------------ 15,155,075 ------------ Utilities (3.1%): National Fuel Gas Co................................... 25,000 840,625 Peoples Energy Corp.................................... 70,000 2,222,500 Telefonos de Mexico SA................................. 80,000 2,550,000 Telephone & Data Systems, Inc.......................... 50,000 1,975,000 Tenneco, Inc........................................... 20,000 992,500 ------------ 8,580,625 ------------ Total Common Stocks (Cost: $125,750,119) 50.9%............................. 139,615,748 ------------
- ------- * Non-income producing security. The accompanying notes are an integral part of these financial statements. 25 MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED) DECEMBER 31, 1995
COUPON FACE MARKET RATE MATURITY AMOUNT VALUE ------ -------- ----------- ------------ LONG-TERM DEBT SECURITIES: U.S. Government (6.6%): U.S. Treasury Note.................. 5.13% 06/30/98 $ 3,000,000 $ 2,992,500 U.S. Treasury Bond.................. 10.38 11/15/12 11,000,000 15,214,375 ------------ 18,206,875 ------------ Government-Other (7.4%): City of New York.................... 10.00 08/01/05 500,000 575,452 Connecticut Housing Fin. Auth....... 7.63 05/15/21 1,000,000 1,020,190 Federal National Mtge Assn.......... 9.50 11/10/20 1,000,000 1,066,620 Republic of Iceland................. 6.13 02/01/04 2,500,000 2,484,950 San Bernardino County, Calif........ 7.69(a) 08/01/16 40,000,000 8,765,200 State of California................. 8.15 09/01/01 500,000 550,815 Suffolk County, New York............ 5.80 11/01/04 250,000 243,955 Suffolk County, New York............ 5.88 11/01/05 750,000 729,465 Swedish Export Credit............... 9.88 03/15/38 3,000,000 3,331,125 Tennessee Valley Authority.......... 6.88 12/15/43 1,500,000 1,487,337 ------------ 20,255,109 ------------ Consumer, Cyclical (4.0%): Centex Corp......................... 7.38 06/01/05 2,000,000 2,054,788 Costco Wholesale Corp............... 5.75 05/15/02 1,000,000 951,250 Dillard Dept. Stores, Inc........... 9.63 09/15/97 500,000 533,829 Fruit of the Loom, Inc.............. 7.88 10/15/99 500,000 529,767 Gannett, Inc........................ 5.85 05/01/00 1,000,000 1,003,605 General Motors Corp................. 9.75 05/15/99 500,000 508,456 Nordstrom, Inc...................... 8.88 02/15/98 500,000 532,086 Penney (J.C.) Co., Inc.............. 10.00 10/15/97 500,000 537,050 Penske Truck Leasing Co. LP......... 8.25 11/01/99 1,000,000 1,076,460 Shopko Stores, Inc.................. 9.00 11/15/04 1,000,000 1,138,303 Valassis Communication, Inc......... 9.55 12/01/03 2,000,000 2,054,844 ------------ 10,920,438 ------------ Consumer, Non-Cyclical (3.1%): Ralston Purina Co................... 8.63 02/15/22 2,500,000 2,968,075 Rhone-Poulenc S A................... 6.75 10/15/99 1,000,000 1,022,543 Rhone-Poulenc S A................... 7.75 01/15/02 1,000,000 1,072,825 Rite-Aid Corp....................... 6.88 08/15/13 2,500,000 2,444,847 Whitman Corp........................ 7.63 06/15/15 1,000,000 1,060,452 ------------ 8,568,742 ------------ Energy (1.4%): BP North America, Inc............... 9.88 03/15/04 1,000,000 1,250,553 Tosco Corp.......................... 8.25 05/15/03 2,500,000 2,776,610 ------------ 4,027,163 ------------ Financial (7.3%): Aristar, Inc........................ 8.88 08/15/98 500,000 538,330 BankAmerica Corp.................... 7.75 07/15/02 500,000 543,307 Berkley (W.R.) Corp................. 8.70 01/01/22 1,500,000 1,758,183 British Gas Financial, Inc.......... 8.75 03/15/98 500,000 531,644 Chase Manhattan Bank................ 7.50 12/01/97 1,000,000 1,035,079 CIT Group Holdings, Inc............. 8.75 04/15/98 500,000 533,725 Citicorp............................ 10.75 12/15/15 1,009,000 1,032,973 Fairfax Financial Holdings.......... 8.25 10/01/15 500,000 538,765 General Electric Capital Corp....... 8.75 05/21/07 2,000,000 2,428,280 General Motors Acceptance Corp...... 7.88 03/04/97 500,000 509,442 General Motors Acceptance Corp...... 8.38 05/01/97 750,000 774,384 Heller Financial, Inc............... 9.13 08/01/99 500,000 550,980
The accompanying notes are an integral part of these financial statements. 26 MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED) DECEMBER 31, 1995
COUPON FACE MARKET RATE MATURITY AMOUNT VALUE -------- -------- ----------- ------------ Kemper Corp......................... 8.80% 11/01/98 $ 500,000 $ 534,221 Progressive Corp. of Ohio........... 10.00 12/15/00 500,000 584,815 Rodamco NV.......................... 7.75 05/15/15 2,000,000 2,252,806 Roosevelt Fed Svgs & Ln Assn........ 10.13 04/15/18 1,000,000 1,086,751 Sun America, Inc.................... 9.00 01/15/99 1,000,000 1,081,802 Sun America, Inc.................... 9.95 02/01/12 2,000,000 2,579,064 Vesta Insurance Group, Inc.......... 8.75 07/15/25 1,000,000 1,093,876 ------------ 19,988,427 ------------ Technology (1.9%): McDonnell Douglas Corp.............. 9.75 04/01/12 4,000,000 5,118,992 ------------ Utilities (9.3%): Bellsouth Telecommunication......... 7.50 06/15/33 2,500,000 2,665,010 Big Rivers Electric Corp............ 9.50 02/15/17 2,000,000 2,229,930 Big Rivers Electric Corp............ 9.52 03/15/19 2,500,000 2,792,885 Big Rivers Electric Corp............ 10.70 09/15/17 4,000,000 4,507,392 Central Telephone Co................ 9.28 11/27/00 1,000,000 1,141,920 Connecticut Yankee Atomic Pwr....... 12.00 06/01/00 1,674,000 1,752,666 New York Telephone Co............... 6.70 11/01/23 2,000,000 1,965,502 Pacific Gas & Electric Co........... 8.75 01/01/01 1,000,000 1,111,659 PacifiCorp.......................... 8.73 02/12/98 1,000,000 1,063,690 Philadelphia Electric Co............ 7.13 08/15/23 1,000,000 993,370 Southern Union Co................... 7.60 02/01/24 5,000,000 5,171,470 ------------ 25,395,494 ------------ TOTAL LONG-TERM DEBT SECURITIES (Cost: $105,857,029) 41.0%......... 112,481,240 ------------ SHORT-TERM DEBT SECURITIES: U.S. Government (4.8%): U.S. Treasury Note.................. 4.00 01/31/96 13,000,000 12,991,894 ------------ Basic Materials (0.2%): Dow Corning......................... 8.38 11/01/96 500,000 511,530 ------------ DISCOUNT FACE AMORTIZED RATE MATURITY AMOUNT COST -------- -------- ----------- ------------ Commercial Paper (3.1%): General Electric Capital Corp....... 5.95 01/03/96 3,520,000 3,517,672 Hershey Foods Corp.................. 5.80 01/02/96 5,085,000 5,082,542 ------------ 8,600,214 ------------ TOTAL SHORT-TERM DEBT SECURITIES (Cost: $22,095,928) 8.1%............ 22,103,638 ------------ TOTAL INVESTMENTS (Cost: $253,703,076) 100.0%......... $274,200,626 ============
- ------- (a) Not a coupon rate; bond equivalent yield to maturity. The accompanying notes are an integral part of these financial statements. 27 MUTUAL OF AMERICA INVESTMENT CORPORATION (COMPOSITE FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED) DECEMBER 31, 1995
SHARES EXPIRATION EXERCISE SUBJECT MARKET DATE PRICE TO CALL VALUE ---------- -------- ------- ----------- OPTIONS WRITTEN: Allstate Corp......................... 01/20/96 $30.00 8,000 $ (87,000) Allstate Corp......................... 01/20/96 35.00 20,000 (122,500) Allstate Corp......................... 01/20/96 40.00 2,000 (3,375) Allstate Corp......................... 04/20/96 40.00 5,000 (15,625) AMR Corp.............................. 01/20/96 80.00 5,000 (2,188) AMR Corp.............................. 02/17/96 80.00 5,000 (5,625) Anadarko Petroleum Corp............... 02/17/96 45.00 12,500 (119,531) Anadarko Petroleum Corp............... 05/18/96 55.00 5,000 (12,500) Anixter International, Inc............ 01/20/96 20.00 15,500 (4,844) AT&T Corp............................. 01/20/96 50.00 1,800 (26,325) AT&T Corp............................. 01/20/96 55.00 1,500 (14,438) AT&T Corp............................. 01/20/96 60.00 3,400 (17,850) Browning Ferris Inds., Inc............ 03/16/96 30.00 10,000 (13,125) Calgon Carbon Corp.................... 02/17/96 12.50 2,500 (938) Centex Corp........................... 01/20/96 30.00 32,500 (152,344) Cooper Industries..................... 01/20/96 35.00 10,000 (19,375) Cooper Industries..................... 01/20/96 40.00 6,200 (969) Cooper Industries..................... 04/20/96 35.00 5,000 (15,313) Dresser Industries, Inc............... 01/20/96 22.50 15,000 (30,000) Eastman Kodak Co...................... 01/20/96 55.00 2,000 (24,500) Enron Oil & Gas Co.................... 04/20/96 25.00 11,000 (15,469) First Chicago NBD Corp................ 01/20/96 70.00 12,670 (35,634) Fluor Corp............................ 01/20/96 55.00 3,800 (42,275) Fluor Corp............................ 01/20/96 60.00 2,500 (15,625) General Electric Co................... 03/16/96 65.00 5,000 (39,375) General Electric Co................... 03/16/96 75.00 5,000 (9,375) General Motors Corp................... 03/16/96 50.00 30,000 (108,750) General Motors Corp................... 03/16/96 55.00 5,000 (6,875) Georgia Pacific Corp.................. 01/20/96 80.00 5,000 (156) Georgia Pacific Corp.................. 04/20/96 75.00 5,000 (8,750) Lafarge Corp.......................... 02/17/96 20.00 4,000 (1,500) Minnesota Mining & Mfg. Co............ 01/20/96 55.00 5,000 (57,813) Minnesota Mining & Mfg. Co............ 01/20/96 60.00 19,000 (109,250) Motorola, Inc......................... 04/20/96 55.00 15,000 (95,625) Newmont Mining Corp................... 01/20/96 42.50 10,000 (31,875) Newmont Mining Corp................... 06/22/96 42.50 15,000 (84,375) Oceaneering Int'l, Inc................ 01/20/96 12.50 5,000 (3,750) Pharmacia & Upjohn, Inc............... 04/20/96 40.00 5,000 (8,750) PNC Bank Corp......................... 05/18/96 32.50 5,000 (10,000) Sears Roebuck & Co.................... 01/20/96 35.00 5,000 (22,500) St. Paul Companies (The).............. 01/20/96 50.00 1,200 (6,825) St. Paul Companies (The).............. 01/20/96 55.00 10,000 (12,188) St. Paul Companies (The).............. 01/20/96 60.00 10,000 (625) St. Paul Companies (The).............. 04/20/96 50.00 10,000 (63,125) St. Paul Companies (The).............. 04/20/96 55.00 5,000 (13,750) Tecumseh Products Co. Cl A............ 03/16/96 50.00 8,000 (30,500) Telefonos de Mexico SA................ 01/20/96 25.00 10,000 (70,625) Telefonos de Mexico SA................ 02/17/96 30.00 20,000 (65,000) Telephone & Data Systems, Inc......... 05/18/96 40.00 5,000 (12,813) TNT Freightways Corp.................. 03/16/96 20.00 5,000 (8,125) TRW, Inc.............................. 01/20/96 70.00 20,000 (150,000) TRW, Inc.............................. 04/20/96 75.00 5,000 (23,438) Unocal Corp........................... 04/20/96 30.00 10,000 (10,000) USX-Marthon Group..................... 01/20/96 20.00 5,000 (938) USX-U.S. Steel Group, Inc............. 01/20/96 30.00 5,000 (5,313) USX-U.S. Steel Group, Inc............. 01/20/96 32.50 10,000 (1,875) Western Atlas, Inc.................... 03/16/96 50.00 6,000 (15,000) WMX Technologies, Inc................. 01/20/96 30.00 10,000 (5,000) ----------- TOTAL OPTIONS WRITTEN: (Premiums Recieved: $1,281,719)................ $(1,891,223) ===========
The accompanying notes are an integral part of these financial statements. 28 MUTUAL OF AMERICA INVESTMENT CORPORATION (AGGRESSIVE EQUITY FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES DECEMBER 31, 1995
NUMBER OF MARKET SHARES VALUE --------- ----------- COMMON STOCKS: Basic Materials (1.4%): ABT Building Products Corp.*............................. 40,500 $ 577,127 Mississippi Chemical Corp................................ 12,000 279,000 ----------- 856,127 ----------- Consumer, Cyclical (11.7%): American Radio Systems Corp.*............................ 35,000 980,000 Catherines Stores Corp.*................................. 19,000 156,750 Centex Corp.............................................. 9,000 312,750 Fleetwood Enterprises, Inc............................... 20,000 515,000 General Motors Corp...................................... 25,000 1,321,875 Marisa Christina, Inc.*.................................. 35,000 595,000 Micro Warehouse, Inc.*................................... 15,000 648,750 Mohawk Industries, Inc.*................................. 13,000 203,125 Nimbus CD International, Inc.*........................... 120,000 975,000 Pep Boys-Manny, Moe & Jack............................... 40,000 1,025,000 Shopko Stores, Inc....................................... 30,000 337,500 Team Rental Group, Inc.*................................. 25,000 212,500 ----------- 7,283,250 ----------- Consumer, Non-Cyclical (8.6%): Benson Eyecare Corp.*.................................... 110,000 990,000 Medtronic, Inc........................................... 17,000 949,875 Mylan Laboratories, Inc.................................. 40,000 940,000 Pepsi-Cola Puerto Rico Bottling Co....................... 25,000 287,500 Pharmacia & Upjohn, Inc.................................. 30,000 1,162,500 Protocol Systems, Inc.*.................................. 37,500 393,750 Sterling Vision, Inc.*................................... 93,000 639,375 ----------- 5,363,000 ----------- Energy (13.9%): Chieftan International, Inc.*............................ 65,000 1,153,750 Ente Nazionale Idrocarburi ADR*.......................... 20,000 685,000 Nabors Industries, Inc.*................................. 140,000 1,557,500 Oceaneering Int'l, Inc.*................................. 70,000 901,250 Pride Petroleum Svcs., Inc............................... 102,000 1,083,750 Sonat Offshore Drilling, Inc............................. 30,000 1,342,500 USX-Marthon Group........................................ 45,000 877,500 Western Atlas, Inc.*..................................... 20,000 1,010,000 ----------- 8,611,250 ----------- Financial (1.4%): American Eagle Group, Inc................................ 42,000 467,250 First Financial Caribbean Corp........................... 20,000 375,000 ----------- 842,250 ----------- Industrial (26.4%): AFC Cable Systems, Inc.*................................. 35,500 488,125 Alternative Resources Corp.*............................. 14,000 423,500 Anixter International, Inc.*............................. 60,000 1,117,500 Brockway Standard Holdings*.............................. 10,000 155,000
NUMBER OF MARKET SHARES VALUE --------- ----------- Browning Ferris Inds., Inc............................... 30,000 $ 885,000 Cambridge Tech. Partners, Inc.*.......................... 8,000 460,000 Canadian National Railway*............................... 6,000 90,000 Celadon Group, Inc.*..................................... 32,000 288,000 Corrections Corp. of America*............................ 18,000 668,250 Eagle USA Airfreight, Inc.*.............................. 5,000 131,250 Gardner Denver Machinery*................................ 46,000 874,000 LSI Industries, Inc...................................... 18,500 296,000 Lufkin Industries, Inc................................... 35,000 791,875 Manitowoc Company, Inc................................... 19,100 584,937 Maxxim Medical, Inc.*.................................... 35,000 586,250 Pall Corp................................................ 35,000 940,625 Perkin-Elmer Corp........................................ 30,000 1,132,500 Powell Industries, Inc.*................................. 30,000 247,500 PST Vans Inc.*........................................... 25,000 115,625 Sea Containers, Ltd. Cl A................................ 42,000 729,750 Silicon Valley Group, Inc.*.............................. 50,000 1,262,500 Smith International, Inc.*............................... 65,000 1,527,500 TNT Freightways Corp..................................... 10,500 211,312 Triad Systems Corp.*..................................... 70,000 428,750 UCAR Int'l., Inc.*....................................... 10,000 337,500 Vallen Corp.*............................................ 10,000 196,250 Watsco, Inc.............................................. 43,700 781,137 Zero Corp................................................ 35,000 621,250 ----------- 16,371,886 ----------- Technology (21.9%): Analysts International Corp.............................. 23,500 705,000 Andrew Corp.*............................................ 30,000 1,147,500 GenCorp, Inc............................................. 65,000 796,250 Glenayre Technologies, Inc.*............................. 13,000 809,250 Intuit, Inc.*............................................ 7,000 546,000 Medic Computer Systems, Inc.* 15,000 907,500 Micron Technology, Inc................................... 20,000 795,000 Molex Inc., Cl A......................................... 23,000 704,375 Parametric Technology Co.*............................... 15,000 997,500 Qualcomm, Inc.*.......................................... 30,000 1,290,000 Stratacom, Inc.*......................................... 8,000 588,000 Symantec Corp.*.......................................... 30,000 697,500 Tandem Computers, Inc.*.................................. 60,000 637,500 Tech-Sym Corp.*.......................................... 10,000 316,250 Tellabs, Inc.*........................................... 25,000 925,000 Varian Associates, Inc................................... 10,000 477,500 Xilinx, Inc.*............................................ 40,000 1,220,000 ----------- 13,560,125 ----------- Utilities (4.2%): New Jersey Resources Corp................................ 18,000 542,250 Southwest Gas Corp....................................... 22,000 387,750 Telefonos de Mexico SA................................... 25,000 796,875 Worldcom, Inc.*.......................................... 25,000 881,250 ----------- 2,608,125 ----------- TOTAL COMMON STOCKS (Cost: $47,563,664) 89.5%................................ 55,496,013 -----------
- ------- * Non-income producing security. The accompanying notes are an integral part of these financial statements. 29 MUTUAL OF AMERICA INVESTMENT CORPORATION (AGGRESSIVE EQUITY FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED) DECEMBER 31, 1995
DISCOUNT FACE AMORTIZED RATE MATURITY AMOUNT COST -------- -------- ---------- ----------- SHORT-TERM DEBT SECURITIES: U.S Government/Agencies (4.2%): Federal National Mtge Assoc. ......... 5.50% 01/03/96 $1,660,000 $ 1,658,984 Federal National Mtge Assoc. ......... 5.50 01/03/96 920,000 919,438 ----------- 2,578,422 ----------- Commercial Paper (6.3%): Coca Cola............................. 5.72 01/05/96 1,000,000 999,047 Ford Motor Credit Corp. .............. 5.92 01/02/96 1,425,000 1,424,297 Ford Motor Credit Corp. .............. 5.80 01/02/96 315,000 314,848 General Electric Capital Corp. ....... 5.95 01/03/96 1,197,000 1,196,208 ----------- 3,934,400 ----------- TOTAL SHORT-TERM DEBT SECURITIES (Cost: $6,512,822) 10.5%.............. 6,512,822 ----------- TOTAL INVESTMENTS (Cost: $54,076,486) 100.0%............ $62,008,835 ===========
SHARES EXPIRATION EXERCISE SUBJECT MARKET DATE PRICE TO CALL VALUE ---------- -------- ------- --------- OPTIONS WRITTEN: Cambridge Tech. Partners, Inc. ......... 03/16/96 $45.00 8,000 $(107,000) Centex Corp. ........................... 01/20/96 30.00 9,000 (42,188) General Motors Corp. ................... 01/20/96 47.50 5,000 (25,313) Glenayre Technologies, Inc. ............ 03/16/96 30.00 5,250 (61,250) Glenayre Technologies, Inc. ............ 03/16/96 33.38 3,750 (34,375) Glenayre Technologies, Inc. ............ 03/16/96 36.63 10,500 (70,000) Intuit, Inc. ........................... 01/20/96 65.00 4,000 (48,500) Intuit, Inc. ........................... 04/20/96 65.00 3,000 (51,750) Medic Computer Systems, Inc. ........... 01/20/96 50.00 2,000 (23,250) Medic Computer Systems, Inc. ........... 02/17/96 55.00 6,000 (48,375) Medic Computer Systems, Inc. ........... 02/17/96 60.00 4,000 (20,500) Medic Computer Systems, Inc. ........... 02/17/96 65.00 3,000 (8,625) Medtronic, Inc. ........................ 02/17/96 50.00 15,00 (86,250) Medtronic, Inc. ........................ 02/17/96 55.00 2,000 (5,250) Micro Warehouse, Inc. .................. 02/17/96 45.00 10,000 (35,000) Micro Warehouse, Inc. .................. 05/18/96 45.00 5,000 (29,688) Micron Technology, Inc. ................ 02/17/96 40.00 10,000 (41,250) Micron Technology, Inc. ................ 04/20/96 45.00 10,000 (40,000) Parametric Technology Co. .............. 02/17/96 55.00 6,500 (61,563) Parametric Technology Co. .............. 02/17/96 60.00 8,500 (80,750) Pep Boys-Manny, Moe & Jack.............. 01/20/96 22.50 5,000 (15,938) Perkin-Elmer Corp. ..................... 06/22/96 40.00 5,000 (12,813) Pharmacia & Upjohn, Inc. ............... 04/20/96 40.00 6,000 (10,500) Qualcomm, Inc. ......................... 01/20/96 35.00 5,000 (43,125) Qualcomm, Inc. ......................... 01/20/96 40.00 17,500 (70,000) Qualcomm, Inc. ......................... 04/20/96 35.00 2,500 (26,250) Qualcomm, Inc. ......................... 04/20/96 45.00 5,000 (24,370) Silicon Valley Group, Inc. ............. 03/16/96 30.00 5,000 (7,188)
The accompanying notes are an integral part of these financial statements. 30 MUTUAL OF AMERICA INVESTMENT CORPORATION (AGGRESSIVE EQUITY FUND) PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED) DECEMBER 31, 1995
SHARES EXPIRATION EXERCISE SUBJECT MARKET DATE PRICE TO CALL VALUE ---------- -------- ------- ----------- Sonat Offshore Drilling, Inc........... 02/17/96 $35.00 3,000 $ (30,000) Sonat Offshore Drilling, Inc........... 02/17/96 40.00 7,500 (40,313) Sonat Offshore Drilling, Inc........... 05/18/96 40.00 5,000 (33,125) Sonat Offshore Drilling, Inc........... 05/18/96 45.00 3,000 (11,063) Stratacom, Inc......................... 02/17/96 55.00 4,000 (74,250) Stratacom, Inc......................... 02/17/96 60.00 4,000 (55,500) Telefonos de Mexico SA................. 01/20/96 25.00 5,000 (35,313) Telefonos de Mexico SA................. 01/20/96 30.00 8,000 (20,000) Telefonos de Mexico SA................. 02/17/96 30.00 2,000 (6,500) Tellabs, Inc........................... 01/20/96 35.00 3,000 (10,875) Tellabs, Inc........................... 02/17/96 40.00 4,000 (7,500) Tellabs, Inc........................... 03/16/96 35.00 14,000 (66,500) Tellabs, Inc........................... 03/16/96 40.00 4,000 (11,500) Xilinx, Inc............................ 01/20/96 30.00 8,000 (21,500) Xilinx, Inc............................ 01/20/96 35.00 3,000 (2,250) ----------- TOTAL OPTIONS WRITTEN (Premiums Received: $1,355,501)....... $(1,557,250) ===========
The accompanying notes are an integral part of these financial statements. 31 MUTUAL OF AMERICA INVESTMENT CORPORATION STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995
MONEY MARKET ALL AMERICA EQUITY INDEX BOND FUND FUND FUND FUND ------------ ------------ ------------ ----------------- Assets: Investments at market value (Cost: Money Market Fund -- $73,372,512 All America Fund -- $407,562,323 Equity Index Fund -- $32,236,473 Bond Fund -- $285,040,752) (Notes 1 and 3)........ $73,372,512 $532,545,461 $ 40,820,903 $302,759,214 Cash.................... 33,132 1,844,020 1,988,773 3,209,091 Interest and dividends receivable............. -- 765,203 78,577 5,318,776 Receivable for securities sold........ -- 288,645 2,475 -- Other Assets............ -- 63,244 3,967 106 ----------- ------------ ------------ ------------ Total Assets............ 73,405,644 535,506,573 42,894,695 311,287,187 Payable for securities purchased.............. -- 2,177,923 82,267 8,150 Other liabilities....... -- 174,285 66 -- ----------- ------------ ------------ ------------ Net Assets.............. $73,405,644 $533,154,365 $ 42,812,362 $311,279,037 =========== ============ ============ ============ Number of Shares Outstanding (Note 4)... 62,332,604 250,787,286 31,814,799 217,885,956 =========== ============ ============ ============ Net Asset Values, offering and redemption price per share........ $1.18 $2.13 $1.35 $1.43 ===== ===== ===== ===== SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE EQUITY BOND FUND BOND FUND FUND FUND ------------ ------------ ------------ ----------------- Assets: Investments at market value (Cost: Short-Term Bond Fund -- $2,391,638 Mid-Term Bond Fund -- $23,379,017 Composite Fund -- $253,703,076 Aggressive Equity Fund -- $54,076,486) (Notes 1 and 3)......... $ 2,431,252 $ 24,179,051 $274,200,626 $ 62,008,835 Cash.................... 29,468 18,962 -- 128,440 Interest and dividends receivable............. 51,765 299,944 2,460,162 18,282 Receivable for securities sold........ -- -- 2,617,571 53,173 Other assets............ -- -- 6,825 -- ----------- ------------ ------------ ------------ Total Assets............ 2,512,485 24,497,957 279,285,184 62,208,730 Payable for securities purchased.............. -- -- 971,629 2,023,907 Call options written, at market value (Premium received: Composite Fund -- $1,281,719 Aggressive Equity Fund -- $1,355,501)... -- -- 1,891,223 1,557,250 Other liabilities....... -- -- 130,710 -- ----------- ------------ ------------ ------------ Net Assets.............. $ 2,512,485 $ 24,497,957 $276,291,622 $58,627,573 =========== ============ ============ ============ Number of Shares Outstanding (Note 4)... 2,465,605 24,493,447 152,935,666 43,379,464 =========== ============ ============ ============ Net Asset Values, offering and redemption price per share........ $1.02 $1.00 $1.81 $1.35 ===== ===== ===== =====
The accompanying notes are an integral part of these financial statements. 32 MUTUAL OF AMERICA INVESTMENT CORPORATION STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1995
MONEY MARKET ALL AMERICA EQUITY INDEX BOND FUND FUND FUND FUND ------------- ------------- ------------- ----------------- Investment Income and Expenses: Income: Dividends.............. $ -- $ 8,811,357 $ 778,882 $ -- Interest............... 5,000,946 519,951 3,587 19,896,395 ------------- ------------- ------------- ------------- Total income............ 5,000,946 9,331,308 782,469 19,896,395 ------------- ------------- ------------- ------------- Expenses: Investment advisory fees (Note 2)......... 211,088 2,248,272 40,145 1,391,001 ------------- ------------- ------------- ------------- Net Investment Income... 4,789,858 7,083,036 742,324 18,505,394 ------------- ------------- ------------- ------------- Net Realized and Unrealized Gain (Loss) on Investments (Note 1 ): Net realized gain (loss) on investments: Net proceeds from sales and maturities........ 1,370,239,866 1,485,233,505 4,627,857 1,033,868,939 Cost of securities sold or matured............ 1,370,240,721 1,470,434,620 3,797,154 1,038,058,236 ------------- ------------- ------------- ------------- Net realized gain (loss)................. (855) 14,798,885 830,703 (4,189,297) Net unrealized appreciation (depreciation) of investments............ -- 113,581,011 8,117,495 34,607,512 ------------- ------------- ------------- ------------- Net Realized and Unrealized Gain (Loss) on Investments......... (855) 128,379,896 8,948,198 30,418,215 ------------- ------------- ------------- ------------- Net Increase (Decrease) in Net Assets Resulting From Operations........ $ 4,789,003 $ 135,462,932 $ 9,690,522 $ 48,923,609 ============= ============= ============= ============= SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE EQUITY BOND FUND BOND FUND FUND FUND ------------- ------------- ------------- ----------------- Investment Income and Expenses: Income: Dividends.............. $ -- $ -- $ 2,776,809 $ 285,556 Interest............... 149,494 1,553,312 9,456,615 299,844 ------------- ------------- ------------- ------------- Total income............ 149,494 1,553,312 12,233,424 585,400 ------------- ------------- ------------- ------------- Expenses: Investment advisory fees (Note 2)......... 14,478 124,503 1,272,077 325,785 ------------- ------------- ------------- ------------- Net Investment Income... 135,016 1,428,809 10,961,347 259,615 ------------- ------------- ------------- ------------- Net Realized and Unrealized Gain (Loss) on Investments: Net realized gain (loss) on investments: Net proceeds from sales and maturities........ 5,685,116 52,808,568 1,377,817,338 350,436,564 Cost of securities sold or matured............ 5,685,045 53,359,329 1,369,593,405 344,312,567 ------------- ------------- ------------- ------------- Net realized gain (loss)................. 71 (550,761) 8,223,933 6,123,997 Net unrealized appreciation (depreciation) of investments (Note 1)... 80,884 2,852,665 31,059,449 6,213,711 ------------- ------------- ------------- ------------- Net Realized and Unrealized Gain (Loss) on Investments......... 80,955 2,301,904 39,283,382 12,337,708 ------------- ------------- ------------- ------------- Net Increase (Decrease) in Net Assets Resulting From Operations........ $ 215,971 $ 3,730,713 $ 50,244,729 $ 12,597,323 ============= ============= ============= =============
The accompanying notes are an integral part of these financial statements. 33 MUTUAL OF AMERICA INVESTMENT CORPORATION STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 1995 AND 1994
MONEY MARKET FUND ALL AMERICA FUND EQUITY INDEX FUND -------------------------- -------------------------- ------------------------ 1995 1994 1995 1994 1995 1994 ------------ ------------ ------------ ------------ ----------- ----------- Increase (Decrease) in Net Assets: From Operations: Net investment income.. $ 4,789,858 $ 1,990,270 $ 7,083,036 $ 8,183,579 $ 742,324 $ 704,355 Net realized gain (loss) on investments. (855) (2,108) 14,798,885 26,416,088 830,703 46,675 Unrealized appreciation (depreciation) of investments........... -- -- 113,581,011 (28,919,738) 8,117,495 (441,894) ------------ ------------ ------------ ------------ ----------- ----------- Net Increase (Decrease) in Net Assets Resulting From Operations........ 4,789,003 1,988,162 135,462,932 5,679,929 9,690,522 309,136 ------------ ------------ ------------ ------------ ----------- ----------- Capital Share Transactions (Note 4): Net proceeds from sale of shares............. 92,909,943 94,487,674 85,691,993 39,275,910 27,580,190 15,548,022 Dividends reinvested... 4,789,411 1,985,341 16,966,116 44,786,526 1,434,797 844,140 Cost of shares redeemed.............. (105,660,794) (52,763,640) (63,029,352) (94,291,315) (20,510,835) (16,513,187) Dividend distributions. (4,789,411) (1,985,341) (16,966,116) (44,786,526) (1,434,797) (844,140) ------------ ------------ ------------ ------------ ----------- ----------- Net Increase (Decrease) in Net Assets From Capital Share Transactions........... (12,750,851) 41,724,034 22,662,641 (55,015,405) 7,069,355 (965,165) ------------ ------------ ------------ ------------ ----------- ----------- Increase (Decrease) in Net Assets............. (7,961,848) 43,712,196 158,125,573 (49,335,476) 16,759,877 (656,029) Net Assets, Beginning of Year................... 81,367,492 37,655,296 375,028,792 424,364,268 26,052,485 26,708,514 ------------ ------------ ------------ ------------ ----------- ----------- Net Assets, End of Year. $ 73,405,644 $ 81,367,492 $533,154,365 $375,028,792 $42,812,362 $26,052,485 ============ ============ ============ ============ =========== =========== Components of Net Assets: Paid-in capital........ $ 73,307,847 $ 81,269,287 $408,944,273 $369,315,516 $34,154,804 $25,650,652 Accumulated undistributed net investment income (loss)................ 102,832 102,385 (191,138) (160,586) (16,607) (14,453) Accumulated undistributed net realized gain (loss) on investments........ (5,035) (4,180) (581,908) (5,528,265) 89,735 (50,649) Unrealized appreciation (depreciation) of investments........... -- -- 124,983,138 11,402,127 8,584,430 466,935 ------------ ------------ ------------ ------------ ----------- ----------- Net Assets, End of Year. $ 73,405,644 $ 81,367,492 $533,154,365 $375,028,792 $42,812,362 $26,052,485 ============ ============ ============ ============ =========== =========== BOND FUND SHORT-TERM BOND FUND MID-TERM BOND FUND -------------------------- -------------------------- ------------------------ 1995 1994 1995 1994 1995 1994 ------------ ------------ ------------ ------------ ----------- ----------- Increase (Decrease) in Net Assets: From Operations: Net investment income.. $ 18,505,394 $ 16,647,416 $ 135,016 $ 82,996 $ 1,428,809 $ 951,542 Net realized gain (loss) on investments. (4,189,297) (812,116) 71 (10,738) (550,761) (631) Unrealized appreciation (depreciation) of investments........... 34,607,512 (24,049,488) 80,884 (40,540) 2,852,665 (1,599,232) ------------ ------------ ------------ ------------ ----------- ----------- Net Increase (Decrease) in Net Assets Resulting From Operations........ 48,923,609 (8,214,188) 215,971 31,718 3,730,713 (648,321) ------------ ------------ ------------ ------------ ----------- ----------- Capital Share Transactions (Note 4): Net proceeds from sale of shares............. 49,650,330 39,754,856 2,094,144 1,405,816 5,036,179 11,061,483 Dividends reinvested... 18,492,800 16,671,114 138,417 85,096 1,429,433 994,698 Cost of shares redeemed.............. (35,948,084) (46,228,281) (2,224,502) (1,643,065) (7,997,355) (5,641,705) Dividend distributions. (18,492,800) (16,671,114) (138,417) (85,096) (1,429,433) (994,698) ------------ ------------ ------------ ------------ ----------- ----------- Net Increase (Decrease) in Net Assets From Capital Share Transactions........... 13,702,246 (6,473,425) (130,358) (237,249) (2,961,176) 5,419,778 ------------ ------------ ------------ ------------ ----------- ----------- Increase (Decrease) in Net Assets............. 62,625,855 (14,687,613) 85,613 (205,531) 769,537 4,771,457 Net Assets, Beginning of Year................... 248,653,182 263,340,795 2,426,872 2,632,403 23,728,420 18,956,963 ------------ ------------ ------------ ------------ ----------- ----------- Net Assets, End of Year. $311,279,037 $248,653,182 $ 2,512,485 $ 2,426,872 $24,497,957 $23,728,420 ============ ============ ============ ============ =========== =========== Components of Net Assets: Paid-in capital........ $301,973,717 $269,778,671 $ 2,489,145 $ 2,481,086 $24,298,529 $25,830,272 Accumulated undistributed net investment income (loss)................ (701,307) (713,901) (5,498) (2,097) (47,240) (46,616) Accumulated undistributed net realized gain (loss) on investments........ (7,711,835) (3,522,538) (10,776) (10,847) (553,366) (2,605) Net unrealized appreciation (depreciation) of investments........... 17,718,462 (16,889,050) 39,614 (41,270) 800,034 (2,052,631) ------------ ------------ ------------ ------------ ----------- ----------- Net Assets, End of Year. $311,279,037 $248,653,182 $ 2,512,485 $ 2,426,872 $24,497,957 $23,728,420 ============ ============ ============ ============ =========== ===========
The accompanying notes are an integral part of these financial statements. 34 MUTUAL OF AMERICA INVESTMENT CORPORATION STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS* ENDED DECEMBER 31, 1995 AND 1994
COMPOSITE FUND AGGRESSIVE EQUITY FUND -------------------------- ------------------------ 1995 1994 1995 1994(A) ------------ ------------ ----------- ----------- Increase (Decrease) in Net Assets: From Operations: Net investment income.. $ 10,961,347 $ 8,928,117 $ 259,615 $ 185,830 Net realized gain (loss) on investments. 8,223,933 219,212 6,123,997 (230,159) Unrealized appreciation (depreciation) of investments........... 31,059,449 (16,490,980) 6,213,711 1,516,889 ------------ ------------ ----------- ----------- Net Increase (Decrease) in Net Assets Resulting From Operations......... 50,244,729 (7,343,651) 12,597,323 1,472,560 ------------ ------------ ----------- ----------- Capital Share Transac- tions (Note 4): Net proceeds from sale of shares............. 15,416,148 27,671,789 30,668,870 36,684,132 Dividends reinvested... 15,284,744 12,622,992 4,116,301 191,593 Cost of shares redeemed.............. (21,907,582) (15,500,590) (11,200,912) (11,594,400) Dividend distributions. (15,284,744) (12,622,992) (4,116,301) (191,593) ------------ ------------ ----------- ----------- Net Increase (Decrease) in Net Assets From Capital Share Transactions............ (6,491,434) 12,171,199 19,467,958 25,089,732 ------------ ------------ ----------- ----------- Increase (Decrease) in Net Assets.............. 43,753,295 4,827,548 32,065,281 26,562,292 Net Assets, Beginning of Year.................... 232,538,327 227,710,779 26,562,292 -- ------------ ------------ ----------- ----------- Net Assets, End of Year.. $276,291,622 $232,538,327 $58,627,573 $26,562,292 ============ ============ =========== =========== Components of Net Assets: Paid-in capital........ $252,393,645 $243,600,335 $48,865,584 $25,281,325 Accumulated undistributed net investment income (loss)................ 1,177,730 830,808 (6,192) (5,763) Accumulated undistributed net realized gain (loss) on investments........ 2,832,201 (721,413) 2,037,581 (230,159) Unrealized appreciation (depreciation) of investments........... 19,888,046 (11,171,403) 7,730,600 1,516,889 ------------ ------------ ----------- ----------- Net Assets, End of Year.. $276,291,622 $232,538,327 $58,627,573 $26,562,292 ============ ============ =========== ===========
- ------- * Except as noted. (a) For the period May 2, 1994 (Commencement of Operations) to December 31, 1994. The accompanying notes are an integral part of these financial statements. 35 MUTUAL OF AMERICA INVESTMENT CORPORATION FINANCIAL HIGHLIGHTS Income from investment operations and distributions per share for a Fund share outstanding throughout each of ten years ended December 31, 1995, or, since the Fund's inception date if in existence less than ten years. Other supplementary data with respect to the Funds is presented as if the Funds of the Investment Company succeeded Mutual of America Life's Separate Account No. 2 before January 1, 1986. The financial highlights for the years 1986 through 1991 are presented from the perspective of the Separate Accounts, which are the ultimate holders of the shares of the Investment Company. Effective in 1992 the financial highlights are being presented from the perspective of the Funds.
MONEY MARKET FUND ------------------------------------------------------------------------ YEARS ENDED DECEMBER 31, ------------------------------------------------------------------------ 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 ------ ----- ------ ------ ----- ----- ------ ----- ------ ----- Net Asset Value, Beginning of Year...... $ 1.19 $1.17 $ 1.17 $ 1.18 $1.23 $1.23 $ 1.22 $1.25 $ 1.18 $1.12 ------ ----- ------ ------ ----- ----- ------ ----- ------ ----- Income From Investment Operations: Net Investment Income.. 0.07 0.03 0.04 0.04 0.12 0.10 0.12 0.08 0.07 0.06 Net Gains or (Losses) on Securities realized and unrealized............ -- 0.02 -- -- (0.05) -- -- -- -- -- ------ ----- ------ ------ ----- ----- ------ ----- ------ ----- Total From Investment Operations............. 0.07 0.05 0.04 0.04 0.07 0.10 0.12 0.08 0.07 0.06 ------ ----- ------ ------ ----- ----- ------ ----- ------ ----- Less: Dividend Distributions From Net Investment Income.. (0.08) (0.03) (0.04) (0.05) (0.12) (0.10) (0.11) (0.11) -- -- ------ ----- ------ ------ ----- ----- ------ ----- ------ ----- Total Distributions..... (0.08) (0.03) (0.04) (0.05) (0.12) (0.10) (0.11) (0.11) -- -- ------ ----- ------ ------ ----- ----- ------ ----- ------ ----- Net Asset Value, End of Year................... $ 1.18 $1.19 $ 1.17 $ 1.17 $1.18 $1.23 $ 1.23 $1.22 $ 1.25 $1.18 ====== ===== ====== ====== ===== ===== ====== ===== ====== ===== Total Return (%)........ 5.8 4.1 2.9 3.3 4.4 6.8 7.8 5.9 5.7 4.8 Net Assets, End of Year ($ millions)........... 73 81 38 39 43 89 81 6 3 2 Ratio of Expenses to Average Net Assets (%). 0.25 0.25 0.26 0.40 0.40 0.40 0.40 0.40 0.40 0.40 Ratio of Net Income to Average Net Assets (%). 5.66 4.15 2.90 3.33 5.73 7.79 8.90 6.85 5.99 5.90 Portfolio Turnover Rate(a)................ N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
- ------- (a)Portfolio turnover rate excludes all U.S. Government and short-term securities. 36 MUTUAL OF AMERICA INVESTMENT CORPORATION FINANCIAL HIGHLIGHTS (CONTINUED)
ALL AMERICA FUND(B) --------------------------------------------------------------------------- YEARS ENDED DECEMBER 31, --------------------------------------------------------------------------- 1995 1994(C) 1993 1992 1991 1990 1989 1988 1987 1986 ----- ------- ----- ------ ------ ------ ------ ----- ------ ------ Net Asset Value, Beginning of Year...... $1.61 $ 1.80 $1.79 $ 1.93 $ 1.70 $ 1.81 $ 1.69 $1.82 $ 1.67 $ 1.49 ----- ------ ----- ------ ------ ------ ------ ----- ------ ------ Income From Investment Operations: Net Investment Income.. 0.03 0.04 0.04 0.04 0.18 0.08 0.28 0.06 0.02 0.01 Net Gains or (Losses) on Securities realized and unrealized............ 0.56 (0.01) 0.18 0.03 0.23 (0.11) 0.14 0.10 0.13 0.17 ----- ------ ----- ------ ------ ------ ------ ----- ------ ------ Total From Investment Operations............. 0.59 0.03 0.22 0.07 0.41 (0.03) 0.42 0.16 0.15 0.18 ----- ------ ----- ------ ------ ------ ------ ----- ------ ------ Less Dividend Distributions: From Net Investment Income................ (0.03) (0.04) (0.04) (0.04) (0.05) (0.06) (0.05) (0.09) -- -- From Capital Gains..... (0.04) (0.18) (0.17) (0.17) (0.13) (0.02) (0.25) (0.20) -- -- ----- ------ ----- ------ ------ ------ ------ ----- ------ ------ Total Distributions..... (0.07) (0.22) (0.21) (0.21) (0.18) (0.08) (0.30) (0.29) -- -- ----- ------ ----- ------ ------ ------ ------ ----- ------ ------ Net Asset Value, End of Year................... $2.13 $ 1.61 $1.80 $ 1.79 $ 1.93 $ 1.70 $ 1.81 $1.69 $ 1.82 $ 1.67 ===== ====== ===== ====== ====== ====== ====== ===== ====== ====== Total Return (%)........ 36.6 (d)3.7 12.0 3.2 22.6 (3.8) 24.1 8.7 8.3 11.3 Net Assets, End of Year ($ millions)........... 533 375 424 398 434 377 437 40 43 29 Ratio of Expenses to Average Net Assets (%). 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.51 Ratio of Net Income to Average Net Assets (%). 1.57 2.11 1.92 2.02 2.49 3.33 2.54 3.07 1.97 2.03 Portfolio Turnover Rate (%)(a)................. 33.63 129.80 93.86 129.40 158.35 108.75 117.60 56.94 150.74 141.40
- ------- (a)Portfolio turnover rate excludes all U.S. Government and short-term securities. (b)Prior to May 2, 1994, this Fund was known as the Stock Fund and had a different investment objective. (c)Reflects the combined data of this Fund and that of its predecessor. (d) Total return reflects performance from May 2, 1994 and is not annualized. 37 MUTUAL OF AMERICA INVESTMENT CORPORATION FINANCIAL HIGHLIGHTS (CONTINUED)
BOND FUND ------------------------------------------------------------------------ YEARS ENDED DECEMBER 31, 1995 ------------------------------------------------------------------------ 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 ----- ----- ------ ------ ----- ------ ----- ----- ------ ----- Net Asset Value, Beginning of Year...... $1.27 $1.41 $ 1.41 $ 1.41 $1.33 $ 1.37 $1.27 $1.40 $ 1.42 $1.28 ----- ----- ------ ------ ----- ------ ----- ----- ------ ----- Income From Investment Operations: Net Investment Income.. 0.09 0.09 0.09 0.09 0.13 0.09 -- 0.09 0.07 0.06 Net Gains or (Losses) on Securities realized and unrealized............ 0.16 (0.14) 0.09 0.03 0.08 (0.02) 0.16 (0.01) (0.09) 0.08 ----- ----- ------ ------ ----- ------ ----- ----- ------ ----- Total From Investment Operations............. 0.25 (0.05) 0.18 0.12 0.21 0.07 0.16 0.08 (0.02) 0.14 ----- ----- ------ ------ ----- ------ ----- ----- ------ ----- Less Dividend Distributions: From Net Investment Income................ (0.09) (0.09) (0.09) (0.09) (0.11) (0.11) (0.06) (0.21) -- -- From Capital Gains..... -- -- (0.09) (0.03) (0.02) -- -- -- -- -- ----- ----- ------ ------ ----- ------ ----- ----- ------ ----- Total Distributions..... (0.09) (0.09) (0.18) (0.12) (0.13) (0.11) (0.06) (0.21) -- -- ----- ----- ------ ------ ----- ------ ----- ----- ------ ----- Net Asset Value, End of Year................... $1.43 $1.27 $ 1.41 $ 1.41 $1.41 $ 1.33 $1.37 $1.27 $ 1.40 $1.42 ===== ===== ====== ====== ===== ====== ===== ===== ====== ===== Total Return (%)........ 19.4 (3.2) 13.1 8.6 14.0 3.5 11.1 6.2 (1.9) 10.5 Net Assets, End of Year ($ millions)........... 311 249 263 233 187 163 109 5 4 3 Ratio of Expenses to Average Net Assets (%). 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.51 Ratio of Net Income to Average Net Assets (%). 6.64 6.32 6.30 6.93 7.59 8.57 8.55 8.25 7.97 8.26 Portfolio Turnover Rate (%)(a)................. 41.93 51.14 103.16 112.40 95.00 129.02 47.70 75.61 47.41 63.36
- ------- (a) Portfolio turnover rate excludes all U.S. Government and short-term securities. 38 MUTUAL OF AMERICA INVESTMENT CORPORATION FINANCIAL HIGHLIGHTS (CONTINUED)
COMPOSITE FUND --------------------------------------------------------------------------- YEARS ENDED DECEMBER 31, --------------------------------------------------------------------------- 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 ------ ------ ------ ------ ------ ------ ----- ----- ------ ------ Net Asset Value, Beginning of Year...... $ 1.57 $ 1.71 $ 1.59 $ 1.61 $ 1.53 $ 1.63 $1.46 $1.60 $ 1.51 $ 1.35 ------ ------ ------ ------ ------ ------ ----- ----- ------ ------ Income From Investment Operations: Net Investment Income.. 0.08 0.05 0.05 0.06 0.19 0.14 0.11 0.08 0.05 0.03 Net Gains or (Losses) on Securities realized and unrealized............ 0.27 (0.10) 0.22 0.03 0.09 (0.09) 0.17 0.05 0.04 0.13 ------ ------ ------ ------ ------ ------ ----- ----- ------ ------ Total From Investment Operations............. 0.35 (0.05) 0.27 0.09 0.28 0.05 0.28 0.13 0.09 0.16 ------ ------ ------ ------ ------ ------ ----- ----- ------ ------ Less Dividend Distributions: From Net Investment Income................ (0.08) (0.07) (0.05) (0.06) (0.07) (0.10) (0.08) (0.17) -- -- From Capital Gains..... (0.03) (0.02) (0.10) (0.05) (0.13) (0.05) (0.03) (0.10) -- -- ------ ------ ------ ------ ------ ------ ----- ----- ------ ------ Total Distributions..... (0.11) (0.09) (0.15) (0.11) (0.20) (0.15) (0.11) (0.27) -- -- ------ ------ ------ ------ ------ ------ ----- ----- ------ ------ Net Asset Value, End of Year................... $ 1.81 $ 1.57 $ 1.71 $ 1.59 $ 1.61 $ 1.53 $1.63 $1.46 $ 1.60 $ 1.51 ====== ====== ====== ====== ====== ====== ===== ===== ====== ====== Total Return (%)........ 21.9 (3.0) 16.9 5.9 16.4 1.5 17.2 7.9 5.2 11.4 Net Assets, End of Year ($ millions)........... 276 233 228 138 111 79 67 51 45 30 Ratio of Expenses to Average Net Assets (%). 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.51 Ratio of Net Income to Average Net Assets (%). 4.30 3.88 3.48 4.01 4.75 6.20 5.48 5.94 5.10 5.35 Portfolio Turnover Rate (%)(a)................. 76.84 113.86 100.76 107.69 134.91 105.06 87.32 50.88 124.04 98.74
- ------- (a) Portfolio turnover rate excludes all U.S. Government and short-term securities. 39 MUTUAL OF AMERICA INVESTMENT CORPORATION FINANCIAL HIGHLIGHTS (CONTINUED)
EQUITY INDEX SHORT-TERM MID-TERM AGGRESSIVE FUND BOND FUND BOND FUND EQUITY FUND --------------------- --------------------- --------------------- --------------- YEARS ENDED YEARS ENDED YEARS ENDED YEARS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, --------------------- --------------------- --------------------- --------------- 1995 1994 1993(b) 1995 1994 1993(b) 1995 1994 1993(b) 1995 1994(c) ----- ----- ------- ----- ----- ------- ----- ----- ------- ------ ------- Net Asset Value, Beginning of Year...... $1.02 $1.04 $1.00 $1.00 $1.02 $ 1.00 $0.91 $0.99 $ 1.00 $ 1.05 $ 1.00 ----- ----- ----- ----- ----- ------ ----- ----- ------ ------ ------ Income From Investment Operations: Net Investment Income.. 0.02 0.03 0.02 0.06 0.04 0.02 0.06 0.03 0.04 0.01 0.01 Net Gains or (Losses) on Securities realized and unrealized........ 0.36 (0.01) 0.04 0.02 (0.02) 0.02 0.09 (0.07) 0.04 0.39 0.05 ----- ----- ----- ----- ----- ------ ----- ----- ------ ------ ------ Total From Investment Operations............. 0.38 0.02 0.06 0.08 0.02 0.04 0.15 (0.04) 0.08 0.40 0.06 ----- ----- ----- ----- ----- ------ ----- ----- ------ ------ ------ Less Dividend Distributions: From Net Investment Income................. (0.03) (0.03) (0.02) (0.06) (0.04) (0.02) (0.06) (0.04) (0.04) (0.01) (0.01) From Capital Gains..... (0.02) (0.01) -- -- -- -- -- -- (0.05) (0.09) -- ----- ----- ----- ----- ----- ------ ----- ----- ------ ------ ------ Total Distributions..... (0.05) (0.04) (0.02) (0.06) (0.04) (0.02) (0.06) (0.04) (0.09) (0.10) (0.01) ----- ----- ----- ----- ----- ------ ----- ----- ------ ------ ------ Net Asset Value, End of Year................... $1.35 $1.02 $1.04 $1.02 $1.00 $ 1.02 $1.00 $0.91 $ 0.99 $ 1.35 $ 1.05 ===== ===== ===== ===== ===== ====== ===== ===== ====== ====== ====== Total Return (%)........ 36.6 1.5 6.2 7.7 1.4 4.6 16.3 (3.7) 7.3 38.2 6.0 Net Assets, End of Year ($ millions)........... 43 26 27 3 2 3 24 24 19 59 27 Ratio of Expenses to Average Net Assets (%)............. 0.13 0.13 0.11 0.50 0.48 0.45 0.50 0.50 0.45 0.85 0.56 Ratio of Net Income to Average Net Assets (%)............. 2.50 2.67 2.43 4.65 3.51 3.09 5.73 4.71 4.13 0.65 0.7 Portfolio Turnover Rate (%)(a)................. 13.99 6.59 1.44 16.47 0.00 122.37 73.72 7.52 162.03 116.52 60.86
- ------- (a)Portfolio turnover rate excludes all U.S. Government and short-term securities. (b)Commenced operations February 5, 1993; total return has not been annualized. (c)Commenced operations May 2, 1994; total return has not been annualized. 40 MUTUAL OF AMERICA INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS 1. SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION Mutual of America Investment Corporation (the "Investment Company") was incorporated on February 21, 1986 under the laws of Maryland and is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. These financial statements reflect the Money Market, All America (formerly Stock), Bond and Composite Funds as the respective successors to Mutual of America Life Insurance Company's ("Mutual of America Life") Separate Account No. 2 Money Market, Stock, Bond and Composite Funds. Accordingly, the financial statements present the net assets of the Investment Company at December 31, 1995, the results of its operations for the year then ended and the changes in net assets for the years ended December 31, 1995 and 1994 of the Money Market, All America, Bond, and Composite Funds under the continuing entity basis of accounting as if Separate Account No. 2's investment assets and related liabilities had been invested in the Investment Company since its inception. The succession or reorganization referred to above was effected on October 31, 1986 by the exchange of shares of the Investment Company for the respective net investment assets of Separate Account No. 2 Funds. At the time of the exchange, the value of an Investment Company share was established at an amount equal to the value of a respective unit of Separate Account No. 2. On January 3, 1989, the net assets of Mutual of America Life's Separate Account No. 1, available only for qualified pension plans, were invested in the All America (formerly Stock) Fund of the Investment Company. Pursuant to this transaction, approximately 249 million shares of the All America Fund were issued. Effective February 5, 1993, the Equity Index Fund, Short-Term Bond Fund and the Mid-Term Bond Fund commenced operations. On May 2, 1994 the Mutual of America Aggressive Equity Fund commenced operations and the Stock Fund was renamed the All America Fund with different investment objectives. The Investment Company currently sells shares of its eight series of funds only to the separate accounts of Mutual of America Life and The American Life Insurance Company of New York ("American Life"), an indirect, wholly-owned subsidiary of Mutual of America Life, as a funding medium for variable annuity and variable life insurance contracts issued by these companies. As of December 31, 1995, Mutual of America Life owned 99.3% and American Life owned 0.7% of the Investment Company's outstanding shares. The following is a summary of the significant accounting policies of the Investment Company: Security Valuation -- Investment securities are valued as follows: Stocks listed on national security exchanges and certain over-the-counter issues quoted on the National Association of Securities Dealers Automated Quotation ("NASDAQ") system are valued at the last sale price, or if no sale, at the latest available bid price. Debt securities are valued at a composite fair market value "evaluated bid," which may be the last sale price. Securities for which market quotations are not readily available will be valued at fair value as determined in good faith by the Investment Adviser under the direction of the Board of Directors of the Investment Company. Short-term investments with a maturity of 60 days or less are valued at amortized cost, which approximates market value. Short-term debt securities, which mature in more than 60 days, are stated at market value. Options purchased by the Investment Company are included in the investment portfolio and valued at the latest sale or closing price. Premiums received by the Investment Company upon writing covered call options are included in the Investment Company's statement of assets and liabilities as an asset and an equivalent liability. The liability is adjusted daily to reflect the market value of the options written based on the latest sale or closing price. If an option expires, or if the Investment Company enters into a closing purchase transaction, the Investment Company realizes a gain or, if the cost of a closing purchase transaction exceeds the premium originally received, a loss, and the liability related to the option is extinguished. If an option is exercised, the proceeds of the sale of the underlying security are increased by the premium originally received when the option was written. Security Transactions -- Security transactions are recorded on the trade date. Interest income is accrued as earned. Dividend income is recorded on the ex-dividend date. 41 MUTUAL OF AMERICA INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (CONTINUED) Realized gains and losses on the sale of short and long-term debt securities are computed on the basis of amortized cost at the time of sale. Realized gains and losses on the sale of common and preferred stocks are based on the identified cost basis of the security. Federal Income Taxes -- The Investment Company intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to shareholders. Therefore, no federal income tax provision is required. 2. EXPENSES The Investment Company has entered into an Investment Advisory Agreement with Mutual of America Capital Management Corporation ("the Adviser"), an indirect wholly-owned subsidiary of Mutual of America Life. For providing investment management services to each of the Funds of the Investment Company, the Adviser receives a fee calculated as a daily charge at the annual rate of .25% of the value of the net assets of the Money Market Fund, and .50% of the value of the net assets of the All America Fund, Bond Fund, Short-Term Bond Fund, Mid-Term Bond Fund and Composite Fund, .125% of the value of the net assets of the Equity Index Fund, and .85% of the value of the net assets of the Aggressive Equity Fund. Prior to November 3, 1993, Mutual of America Life was the investment adviser to the Investment Company; Mutual of America Life's obligations under the Agreement were assumed by the Adviser on that date. Under subadvisory agreements, the Adviser has delegated its investment advisory responsibilities to such subadvisers, is responsible for providing management services to the respective Funds and pays the subadvisors for their investment advisory services. The Adviser voluntarily limits the expenses of each Fund, other than for brokers' commissions, transfer taxes and other fees relating to portfolio transactions, to the amount of the advisory fee paid by the Funds of the Investment Company to the Adviser. The Adviser may discontinue this practice at any time. Various funds of the Investment Company placed portfolio transactions through a broker affiliated with the Adviser. The aggregate commissions paid to this broker for the year was $79,289. 3. PURCHASES AND SALES The cost of investment purchases and proceeds from sales of investments, excluding government, short-term securities and options for the year ended December 31, 1995 are as follows:
ALL AMERICA EQUITY INDEX BOND FUND FUND FUND ------------ ------------ ------------ Cost of investment purchases............. $174,350,454 $10,402,810 $140,464,290 ============ =========== ============ Proceeds from sales of investments....... $148,094,073 $ 4,313,265 $111,242,732 ============ =========== ============
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE BOND FUND BOND FUND FUND EQUITY FUND ---------- ----------- ------------ ----------- Cost of investment purchases... $1,162,872 $17,807,033 $198,927,109 $60,876,652 ========== =========== ============ =========== Proceeds from sales of investments................... $ 349,602 $17,085,642 $176,081,644 $41,694,766 ========== =========== ============ ===========
The cost of short-term security purchases for the Money Market Fund for the year was $1,357,256,572. Net proceeds from sales and redemptions for the year was $1,370,239,866. 42 MUTUAL OF AMERICA INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (CONTINUED) At December 31, 1995, net unrealized appreciation (depreciation) of investments, based on cost for Federal income tax purposes, was as follows:
MONEY MARKET ALL AMERICA EQUITY INDEX BOND FUND FUND FUND FUND ------------ ------------ ------------ ------------ Aggregate gross unrealized appreciation.............. $ -- $134,076,611 $ 9,423,114 $ 18,826,796 Aggregate gross unrealized depreciation.............. -- 9,093,473 838,684 1,108,334 ----------- ------------ ----------- ------------ Net unrealized appreciation (depreciation)............ $ -- $124,983,138 $ 8,584,430 $ 17,718,462 =========== ============ =========== ============ Aggregate cost of investments for Federal income tax purposes....... $73,372,512 $407,562,323 $32,236,473 $285,040,752 =========== ============ =========== ============
SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE BOND FUND BOND FUND FUND EQUITY FUND ---------- ----------- ------------ ----------- Aggregate gross unrealized appreciation.................. $ 39,614 $ 817,800 $ 23,287,967 $ 9,431,050 Aggregate gross unrealized depreciation.................. -- 17,766 3,399,921 1,700,450 ---------- ----------- ------------ ----------- Net unrealized appreciation (depreciation)................ $ 39,614 $ 800,034 $ 19,888,046 $ 7,730,600 ========== =========== ============ =========== Aggregate cost of investments for Federal income tax purposes...................... $2,391,638 $23,379,017 $253,703,076 $54,076,486 ========== =========== ============ ===========
4. CAPITAL SHARE ACTIVITY At December 31, 1995 there were 3 billion shares of $.01 par value capital stock authorized for the Investment Company. The shares are allocated into the eight series of funds as follows:
NAME OF FUND AUTHORIZED NO. OF SHARES ------------ ------------------------ Money Market Fund..................................... 100,000,000 All America Fund...................................... 500,000,000 Equity Index Fund..................................... 75,000,000 Bond Fund............................................. 250,000,000 Short-Term Bond Fund.................................. 50,000,000 Mid-Term Bond Fund.................................... 75,000,000 Composite Fund........................................ 200,000,000 Aggressive Equity Fund................................ 500,000,000 ------------- Sub Total........................................... 1,750,000,000 Shares to be allocated at the discretion of the Board of Directors......................................... 1,250,000,000 ------------- Total............................................... 3,000,000,000 =============
Transactions in shares were as follows:
FOR THE YEAR ENDED DECEMBER 31, 1995 -------------------------------------------------- MONEY MARKET ALL AMERICA EQUITY INDEX BOND FUND FUND FUND FUND ------------ ----------- ------------ ----------- Shares sold.................. 75,724,884 42,681,882 22,823,514 35,264,481 Shares issued to shareholders as reinvestment of dividends................... 4,066,652 7,980,558 1,066,201 12,944,402 ---------- ---------- ---------- ---------- Total........................ 79,791,536 50,662,440 23,889,715 48,208,883 Shares redeemed.............. 85,788,635 33,103,404 17,637,595 25,740,959 ---------- ---------- ---------- ---------- Net increase (decrease)...... (5,997,099) 17,559,036 6,252,120 22,467,924 ========== ========== ========== ========== FOR THE YEAR ENDED DECEMBER 31, 1995 -------------------------------------------------- SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE BOND FUND BOND FUND FUND EQUITY FUND ------------ ----------- ------------ ----------- Shares sold.................. 2,015,656 5,042,701 8,968,895 23,932,340 Shares issued to shareholders as reinvestment of dividends................... 135,836 1,429,171 8,460,475 3,045,773 ---------- ---------- ---------- ---------- Total........................ 2,151,492 6,471,872 17,429,370 26,978,113 Shares redeemed.............. 2,112,272 7,961,340 12,516,767 8,844,832 ---------- ---------- ---------- ---------- Net increase (decrease)...... 39,220 (1,489,468) 4,912,603 18,133,281 ========== ========== ========== ==========
43 MUTUAL OF AMERICA INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1994 ----------------------------------------------------- MONEY MARKET ALL AMERICA EQUITY INDEX BOND FUND FUND FUND FUND ------------ ----------- ------------ -------------- Shares sold............... 79,933,378 20,711,423 17,287,744 28,581,354 Shares issued to shareholders as reinvestment of dividends................ 1,667,580 27,488,908 826,855 13,108,963 ---------- ---------- ---------- ---------- Total..................... 81,600,958 48,200,331 18,114,599 41,690,317 Shares redeemed........... 45,376,022 51,680,490 17,835,906 33,333,880 ---------- ---------- ---------- ---------- Net increase (decrease)... 36,224,936 (3,480,159) 278,693 8,356,437 ========== ========== ========== ========== FOR THE YEAR ENDED DECEMBER 31, 1994 ----------------------------------------------------- SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE BOND FUND BOND FUND FUND EQUITY FUND(A) ------------ ----------- ------------ -------------- Shares sold............... 1,473,435 11,788,299 16,926,834 39,569,672 Shares issued to share- holders as reinvestment of dividends............. 85,016 1,089,054 7,592,331 182,099 ---------- ---------- ---------- ---------- Total..................... 1.558,451 12,877,353 24,519,165 39,751,771 Shares redeemed........... 1,704,117 6,094,347 9,579,455 14,502,387 ---------- ---------- ---------- ---------- Net increase (decrease)... (145,666) 6,783,006 14,939,710 25,249,384 ========== ========== ========== ==========
- ------- (a) Commenced Operations May 2, 1994 5. DIVIDENDS On December 29, 1995 dividend distributions were declared for each of the Funds from net realized gains on investment transactions and net investment income during 1995. Additionally, on September 15, 1995 the remaining required dividends relating to the 1994 Internal Revenue Sec. 885(A) election were declared for the Money Market Fund, which were reinvested resulting in an increase in the aggregate shares outstanding. Dividends declared on September 15, 1995 were paid on September 15, 1995 to shareholders of record on September 14, 1995, and dividends declared on December 29, 1995 were paid on December 29, 1995 to shareholders of record on December 28, 1995. All dividend distributions are immediately reinvested in additional shares of each respective Fund.
MONEY MARKET ALL AMERICA EQUITY INDEX BOND FUND FUND FUND FUND ------------ ----------- ------------ ----------- Ordinary income.............. $4,789,411 $ 7,113,588 $ 744,478 $18,492,800 Capital gains................ -- 9,852,528 690,319 -- ---------- ----------- ----------- ----------- Total dividends.............. $4,789,411 $16,966,116 $ 1,434,797 $18,492,800 ========== =========== =========== =========== Dividend amounts per share... $ .082 $ .070 $ .047 $ .090 ========== =========== =========== =========== Increase in number of shares per fund.................... 4,066,652 17,980,558 (1,066,201) 12,944,402 ========== =========== =========== =========== SHORT-TERM MID-TERM COMPOSITE AGGRESSIVE BOND FUND BOND FUND FUND EQUITY FUND ------------ ----------- ------------ ----------- Ordinary income.............. $ 138,417 $ 1,429,433 $10,614,425 $ 260,044 Capital gains................ -- -- 4,670,319 3,856,257 ---------- ----------- ----------- ----------- Total dividends.............. $ 138,417 $ 1,429,433 $15,284,744 $ 4,116,301 ========== =========== =========== =========== Dividend amounts per share... $ .061 $ .062 $ .106 $ .103 ========== =========== =========== =========== Increase in number of shares per fund.................... 135,836 1,429,171 8,460,475 3,045,773 ========== =========== =========== ===========
44 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF MUTUAL OF AMERICA INVESTMENT CORPORATION: We have audited the accompanying statement of assets and liabilities, including the portfolio of investments in securities, of Mutual of America Investment Corporation (a Maryland Corporation) comprising, respectively, the Money Market, All America (formerly the Stock Fund), Equity Index, Bond, Short-Term Bond, Mid-Term Bond and Composite Fund as of December 31, 1995, and the related statement of operations for the year then ended and the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended. We have also audited the statement of assets and liabilities, including the portfolio of investments in securities, of Mutual of America Investment Corporation comprising the Aggressive Equity Fund as of December 31, 1995 and the related statements of operations for the year then ended and the statement of changes in net assets and the financial highlights for the year ended December 31, 1995 and the period May 2, 1994 (commencement of operations) to December 31, 1994. These financial statements and the financial highlights are the responsibility of the Corporation's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights of Mutual of America Investment Corporation for each of the six years in the period ended December 31, 1991, were audited by other auditors whose report dated February 19, 1992, expressed an unqualified opinion on those financial highlights. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmations of securities owned as of December 31, 1995 by correspondence with the custodian. An audit also included assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Money Market, All America (formerly the Stock Fund), Equity Index, Bond, Short-Term Bond, Mid-Term Bond, and the Composite Funds of Mutual of America Investment Corporation as of December 31, 1995, the results of their operations for the year then ended and the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the four years in the period then ended in conformity with generally accepted accounting principles. Also, in our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Aggressive Equity Fund of Mutual of America Investment Corporation as of December 31, 1995, the results of its operations for the year then ended and the changes in its net assets and its financial highlights for the year ended December 31, 1995 and the period May 2, 1994 (commencement of operations) to December 31, 1994 in conformity with generally accepted accounting principles. /s/ Arthur Andersen LLP New York, New York February 20, 1996 45 PART C--OTHER INFORMATION ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS (a) Financial Statements for the year ended December 31, 1995 are included in Part B. (b) Exhibits. The following Exhibits are filed herewith: Exhibit 11(a). Consent of Arthur Andersen LLP Exhibit 11(b). Consent of Graham & James LLP ITEM 28. BUSINESS AND OTHER CONNECTIONS WITH INVESTMENT ADVISER Mutual of America Capital Management Corporation (the "Adviser") is the investment adviser to the Investment Company, and is registered as an investment adviser under the Investment Advisers Act of 1940. The names, addresses and positions with the Adviser of each Director and officer of the Adviser is set forth below.
POSITIONS WITH PRINCIPAL OCCUPATION NAME ADVISER DURING PAST TWO YEARS - ---- -------------- --------------------- Thomas J. Moran Director, Chairman President and Director of Mutual of America Life, Chief 320 Park Avenue of the Board Executive Officer, Mutual of America Life since October NY, NY 10022 1994 Manfred Altstadt Director, Senior Senior Executive Vice President and Chief Financial 320 Park Avenue Executive Vice Officer of Mutual of America Life and American Life NY, NY 10022 President and Chief Financial Officer F. Harlan Batrus Director Partner, Lazard Freres Roger E. Birk Director Past President and Director, Federal National Mortgage Association. Chairman Emeritus, Merrill Lynch & Co. Inc. Robert X. Chandler Director Retired; formerly President, United Way of Massachusetts Bay, Inc. Nathaniel A. Davis Director Chief Operating Officer, MCI Metro Anthony F. Earley Director Executive Vice President and Chief Investment Officer, Detroit Edison; prior thereto President and Chief Operating Officer, Long Island Lighting Company (LILCO) William H. Gates Director Partner, Preston, Thorgrimson, Shidler, Gates & Ellis, Attorneys William T. Knowles Director Consultant Walter A. McDougal Director Former Chairman and President, Richmond Hill Savings Bank John W. Davidson President and Chief President and Chief Executive Officer of the Adviser Executive Officer since March 1996; President and Chief Executive Officer, Munich Re Capital Management Co., March 1994 to January 1995; prior thereto, Vice President, Fixed Income Portfolios, Bankers Trust Company Dolores J. Executive Vice President and Chief Executive Officer of the Adviser Morrissey President and from June 1994 to March 1996; prior thereto, Executive 320 Park Avenue Assistant to the Vice President and Chief Investment Officer--General NY, NY 10022 President Account of the Adviser. Patrick A. Burns Senior Executive Senior Executive Vice President and General Counsel of 320 Park Avenue Vice President and Mutual of America Life and American Life NY, NY 10022 General Counsel Stephanie J. Kopp Executive Vice Executive Vice President and Secretary of Mutual of 320 Park Avenue President and America Life and American Life NY, NY 10022 Secretary Andrew L. Heiskell Executive Vice Executive Vice President of the Adviser 320 Park Avenue President NY, NY 10022
C-1
POSITIONS WITH PRINCIPAL OCCUPATION NAME ADVISER DURING PAST TWO YEARS - ---- -------------- --------------------- Roger C. Ferrara Senior Vice Senior Vice President, Mutual of America Life, until 320 Park Avenue President January 1994 NY, NY 10022 Frederick M. Senior Vice Senior Vice President of the Adviser since July 1995; Gallagher President prior thereto, consultant 320 Park Avenue NY, NY 10022 Nancy McAvey Senior Vice Vice President of the Adviser until September 1994; 320 Park Avenue President prior thereto Vice President, Mutual of America Life NY, NY 10022 I. Charles Rinaldi Senior Vice Vice President of the Adviser until July 1995 320 Park Avenue President NY, NY 10022 Paul Travers Senior Vice Vice President of the Adviser until March 1996; Senior 320 Park Avenue President Vice President, Mutual of America Life NY, NY 10022 David Wood Senior Vice Vice President of the Adviser until July 1995 320 Park Avenue President NY, NY 10022 Aline Couture Vice President Vice President of the Adviser 320 Park Avenue NY, NY 10022 Doris Klug Vice President Vice President of the Adviser 320 Park Avenue NY, NY 10022 Charles McCaghey Vice President Second Vice President of the Adviser 320 Park Avenue NY, NY 10022 Robert H. Stewart Vice President Vice President of the Adviser 320 Park Avenue NY, NY 10022 Gary P. Wetterau Vice President Vice President of the Adviser since September 1995; 320 Park Avenue prior thereto, Portfolio Manager at M.D. Sass Investors NY, NY 10022 Services, Inc.
Each of Palley-Needelman Asset Management, Inc. ("Palley-Needelman"), Oak Associates, Ltd. ("Oak Associates") and Fred Alger Management, Inc. ("Alger Management") is a subadviser for a portion of the Active Assets of the All America Fund allocated to it. Each subadviser is registered as an investment adviser under the Investment Advisers Act of 1940. The names, addresses and positions of each director and officer of each subadviser are incorporated by reference to the Form ADV of the subadviser filed with the Securities and Exchange Commission, as set forth below. Palley-Needleman Asset Management Inc., Form ADV, SEC File No. 801-9755. Oak Associates, Ltd., Form ADV, SEC File No. 801-23632. Fred Alger Management, Inc., Form ADV, SEC File No. 801-06709. C-2 SIGNATURES PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933 AND THE INVESTMENT COMPANY ACT OF 1940, THE REGISTRANT CERTIFIES THAT IT MEETS ALL OF THE REQUIREMENTS FOR EFFECTIVENESS OF THIS AMENDMENT TO REGISTRATION STATEMENT PURSUANT TO RULE 485(B) UNDER THE SECURITIES ACT OF 1933 AND HAS DULY CAUSED THIS POST-EFFECTIVE AMENDMENT TO ITS REGISTRATION STATEMENT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY AUTHORIZED IN THE CITY OF NEW YORK, THE STATE OF NEW YORK, THE 25TH DAY OF APRIL, 1996. Mutual of America Investment Corporation /s/ Dolores J. Morrissey By_______________________________________ Dolores J. Morrissey President PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, THIS POST- EFFECTIVE AMENDMENT TO ITS REGISTRATION STATEMENT HAS BEEN SIGNED BELOW BY THE FOLLOWING PERSONS IN THE CAPACITIES AND ON APRIL 25, 1996. PRINCIPAL EXECUTIVE OFFICER: /s/ Dolores J. Morrissey By________________________________ Dolores J. Morrissey President PRINCIPAL FINANCIAL OFFICER and PRINCIPAL ACCOUNTING OFFICER: /s/ Manfred Altstadt ___________________________________________ Manfred Altstadt DIRECTORS: /s/ Manfred Altstadt ___________________________________________ Manfred Altstadt /s/ Dolores J. Morrissey ___________________________________________ Dolores J. Morrissey * ___________________________________________ Peter J. Flanagan * ___________________________________________ George J. Mertz * ___________________________________________ James J. Needham * ___________________________________________ Howard J. Nolan By: */s/ Manfred Altstadt ___________________________________________ Attorney-in-fact
C-3 EXHIBIT INDEX No. Page - --- ---- 27.1 Financial Data Schedule for Mutual of America Investment Corporation--Money Market Fund 27.2 Financial Data Schedule for Mutual of America Investment Corporation--All America Fund 27.3 Financial Data Schedule for Mutual of America Investment Corporation--Equity-Index Fund 27.4 Financial Data Schedule for Mutual of America Investment Corporation--Bond Fund 27.5 Financial Data Schedule for Mutual of America Investment Corporation--Short-Term Bond Fund 27.6 Financial Data Schedule for Mutual of America Investment Corporation--Mid-Term Bond Fund 27.7 Financial Data Schedule for Mutual of America Investment Corporation--Composite Fund 27.8 Financial Data Schedule for Mutual of America Investment Corporation--Aggressive Equity Fund 99.11(a) Consent of Arthur Andersen LLP 99.11(b) Consent of Graham & James LLP EX-99.11(A) 2 CONSENT OF ACCOUNTANTS EXHIBIT 99.11(a) CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the use of our reports (and to all references to our Firm) included in or made a part of Registration Statement No. 33-6486. ARTHUR ANDERSEN LLP New York, New York April 29, 1996 EX-99.11(B) 3 CONSENT OF GRAHAM & JAMES EXHIBIT 99.11(b) CONSENT OF GRAHAM & JAMES LLP We hereby consent to all references to our firm included in Registration Statement No. 33-6486. GRAHAM & JAMES LLP New York, New York April 29, 1996 EX-27.1 4 FINANCIAL DATA SCHEDULE MONEY MARKET FUND
6 1 MONEY MARKET FUND 12-MOS DEC-31-1995 JAN-01-1995 DEC-31-1995 73,372,512 73,372,512 0 33,132 0 73,405,644 0 0 0 0 0 73,307,847 62,332,604 68,329,703 102,832 (6,225) (5,035) 0 0 73,405,644 0 5,000,946 0 211,088 4,789,858 (855) 0 4,789,003 0 4,789,411 0 0 75,724,884 85,778,635 4,066,652 (7,961,848) 102,385 (4,180) (5,778) 0 211,088 0 211,088 84,650,958 1.19 .07 0 (.08) 0 0 1.18 .25 0 0
EX-27.2 5 FINANCIAL DATA SCHEDULE ALL AMERICA FUND
6 2 ALL AMERICA FUND 12-MOS DEC-31-1995 JAN-01-1995 DEC-31-1995 407,562,323 532,545,461 1,053,848 1,844,020 63,244 535,506,573 2,177,923 0 174,285 2,352,208 0 408,944,273 250,787,286 233,228,250 (191,138) 30,552 (581,908) 0 124,983,138 533,154,365 8,811,357 519,951 0 2,248,272 7,083,036 14,798,885 113,581,011 135,462,932 0 7,113,588 9,852,528 0 42,681,882 33,103,404 17,980,558 158,125,573 (160,586) (5,528,265) (60,916) 0 2,248,272 0 2,248,272 450,495,139 1.61 .03 .56 (.03) (.04) 0 2.13 .50 0 0
EX-27.3 6 FINANCIAL DATA SCHEDULE EQUITY INDEX FUND
6 3 EQUITY INDEX FUND 12-MOS DEC-31-1995 JAN-01-1995 DEC-31-1995 32,236,473 40,820,903 81,052 1,988,773 3,967 42,894,695 82,267 0 66 82,333 0 34,154,804 31,814,799 25,562,679 (16,607) 2,154 89,735 0 8,584,430 42,812,362 778,882 3,587 0 40,145 742,324 830,703 8,117,495 9,960,522 0 744,478 690,319 0 22,823,514 17,835,906 826,855 16,759,877 (14,453) (50,649) (9,637) 0 40,145 0 40,145 29,742,108 1.02 .02 .36 (.03) (.02) 0 1.35 .13 0 0
EX-27.4 7 FINANCIAL DATA SCHEDULE BOND FUND
6 4 BOND FUND 12-MOS DEC-31-1995 JAN-01-1995 DEC-31-1995 285,040,752 302,759,214 5,318,776 3,209,091 106 311,287,187 8,150 0 0 8,150 0 301,973,717 217,885,956 195,418,032 (701,307) (12,594) (7,711,835) 0 17,718,462 311,279,037 0 19,896,395 0 1,391,001 18,505,394 (4,189,297) 34,607,512 48,923,609 0 18,942,800 0 0 35,264,481 25,740,959 12,944,402 62,625,855 (713,901) (3,522,538) 23,699 0 1,391,001 0 1,391,001 278,750,774 1.27 .09 .16 (.09) 0 0 1.43 .50 0 0
EX-27.5 8 FINANCIAL DATA SCHEDULE SHORT-TERM BOND FUND
6 5 SHORT-TERM BOND FUND 12-MOS DEC-31-1995 JAN-01-1995 DEC-31-1995 2,391,638 2,431,252 51,765 29,468 0 2,512,485 0 0 0 0 0 2,489,145 2,465,605 2,426,385 (5,498) 3,401 (10,776) 0 39,614 2,512,485 0 149,494 0 14,478 135,016 71 80,884 215,971 0 138,417 0 0 2,015,656 2,112,272 135,836 85,613 (2,097) (10,847) 2,097 0 14,478 0 14,478 2,903,428 1.00 .06 .02 (.06) 0 0 1.02 .50 0 0
EX-27.6 9 FINANCIAL DATA SCHEDULE MID-TERM BOND FUND
6 6 MID-TERM BOND FUND 12-MOS DEC-31-1995 JAN-01-1995 DEC-31-1995 23,379,017 24,179,051 299,944 18,962 0 24,497,957 0 0 0 0 0 24,298,529 24,493,447 25,982,915 (47,240) 624 (553,366) 0 800,034 24,497,957 0 1,553,312 0 124,503 1,428,809 (550,761) 2,852,665 3,730,713 0 1,429,433 0 0 5,042,701 7,961,340 1,429,171 769,537 (46,616) (2,605) 43,615 0 124,503 0 124,503 24,947,695 .91 .06 .09 (.06) 0 0 1.00 .50 0 0
EX-27.7 10 FINANCIAL DATA SCHEDULE COMPOSITE FUND
6 7 COMPOSITE FUND 12-MOS DEC-31-1995 JAN-01-1995 DEC-31-1995 253,703,076 274,290,626 5,077,733 0 6,825 279,285,184 971,629 0 2,021,933 2,992,562 0 252,393,645 152,935,666 148,025,063 1,177,730 346,922 2,832,201 0 19,888,046 276,291,622 2,776,809 9,456,615 0 1,272,077 10,961,347 8,223,933 31,059,449 50,244,729 0 10,614,425 4,670,319 0 8,968,895 12,516,767 8,460,475 43,753,295 830,808 (721,413) 56,121 0 1,272,077 0 1,272,077 254,901,243 1.57 .08 .27 (.08) (.03) 0 1.81 .50 0 0
EX-27.8 11 FINANCIAL DATA SCHEDULE AGGRESSIVE EQUITY FUND
6 8 AGGRESSIVE EQUITY FUND 12-MOS DEC-31-1995 JAN-01-1995 DEC-31-1995 54,076,436 62,008,835 71,455 128,440 0 62,208,730 2,023,907 0 1,557,250 3,581,157 0 48,865,584 43,379,464 25,246,183 (6,192) (429) 2,037,581 0 7,730,650 58,627,573 285,556 299,844 0 325,785 259,615 6,123,997 6,213,711 12,597,323 0 260,044 3,856,257 0 23,932,340 8,844,832 3,045,773 32,065,281 (5,763) (230,159) 5,763 0 325,785 0 325,785 39,759,761 1.05 .01 .39 (.01) 0 0 1.35 .85 0 0
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