Mutual of America Composite Fund

Mutual of America Investment Corporation

Fund Information for Mutual of America's Group Products (Except Defined Benefit and Pension Investment Contract), SEP and SIMPLE Contracts Separate Account No. 2 - Standard Pricing Composite Fund

Investment Objective

The Fund seeks capital appreciation and current income by investing in a diversified portfolio of common stocks, debt securities and money market instruments.

Principal Investment Strategies

The Fund invests a portion of its assets in equity and in fixed income (including money market) securities, where the portion in each category of securities will vary based on Mutual of America Capital Management LLC's (the "Adviser") view of current economic and market conditions.

  • The equity portion of the Fund is invested in stocks in the S&P 500® Index, as selected by the large cap equity manager of the Adviser. The Adviser generally invests in stocks that it considers undervalued, or to have attractive growth potential, and with the potential for investment returns that outperform their peer companies.

  • The fixed income portion of the Fund is invested primarily in investment-grade debt securities issued by U.S. corporations or by the U.S. Government or its agencies, including mortgage-backed securities, as managed by the fixed income and mortgage-backed securities managers of the Adviser. The Adviser evaluates each security to be purchased and selects securities based on maturity, credit quality as determined by fundamental analysis and interest income anticipated to be generated.

  • The money market portion of the Fund invests in debt securities with a remaining maturity of 397 calendar days or less that present minimal credit risks.

  • Although the Fund only purchases investment-grade bonds, the Fund may continue to hold certain corporate bonds in the Fund's portfolio that are downgraded to below investment grade, commonly referred to as "junk bonds."

Principal Investment Risks

An investment in the Fund is subject to the following risks which are described in more detail in the Statutory Prospectus.
  • General risk: The Fund may not achieve its investment objective. An investment in the Fund could decline in value, and you could lose money by investing in the Fund.

  • Active Management risk: The portfolio manager’s judgments about the attractiveness, value or potential appreciation of the Fund’s investments may prove to be incorrect. The Fund could underperform in comparison to other funds with a similar benchmark or similar objectives and investment strategies if the Fund’s overall investment selections or strategies fail to produce the intended results.

  • Company risk: The price of the stock of a particular company can vary based on a variety of factors, such as the company's financial performance, changes in management and product trends, and the potential for takeover and acquisition. The prices of equity securities of smaller companies may fluctuate more than for more established companies. The equity securities of smaller companies may not be traded as often as for larger companies, therefore it may be difficult to trade securities at a desirable price. Investments in companies with small market capitalizations generally offer greater opportunities for appreciation, but are associated with more risks than for established companies.

  • Market risk: The risk that prices of securities will go down because of the interplay of market forces may affect a single issuer, industry or sector of the economy or may affect the market as a whole.

  • Large Cap risk: Larger, more established companies may be unable to respond quickly to new competitive challenges and also may not be able to attain the high growth rate of successful smaller companies.

  • Mortgage risk: The duration of mortgage-related securities and interest rates tend to move together. As interest rates rise, the duration of mortgage-related securities extends (referred to as "extension risk") and as interest rates fall, mortgage-related securities are often prepaid at a faster rate (referred to as "pre-payment risk"). Because of interest rate changes, it is not possible to predict the realized yield or average life of a mortgage-backed security.

  • Fixed Income risk: The value of your investment will go up or down depending on movements in the bond markets.

    • Interest rate risk: Fixed income securities have an inverse relationship to interest rates, such that as interest rates rise, bond values decrease, and the Fund faces a heightened level of interest rate risk under current conditions because interest rates are near historically low levels.

    • Corporate Debt risk: During periods of economic uncertainty, the value of corporate debt securities may decline relative to the value of U.S. government debt securities. Debt obligations are subject to the risk that issuers may not be able to pay off the principal and interest when due.

    • Credit risk: Debt obligations are generally subject to the risk that the issuer may be unable to make principal and interest payments when they are due.

    • Call risk: When interest rates decline, an issuer may have an option to call the securities before maturity, resulting in reduced income.

    • Non-investment grade debt risk: Non-investment grade debt obligations, known as "junk bonds," have a higher risk of default and tend to be less liquid than higher-rated securities.

    • Liquidity risk: The prices of debt securities may be subject to significant volatility, particularly as markets become less liquid due to limited dealer inventory of corporate bonds.

    • Extension risk: Mortgage-related and other asset-backed securities are subject to the risk that the issuer of such a security pays back the principal of such an obligation later than expected. This may occur when interest rates rise, and this may negatively affect fund returns.

    • Prepayment risk: Mortgage-related and other asset-backed securities are subject to the risk that the issuer of such a security pays back the principal of such an obligation earlier than expected. This may occur when interest rates decline, and may negatively affect Fund returns.

  • Money Market instrument risk: Money Market instruments may decline in value, based on the performance of the issuer or changes in prevailing interest rates. The returns on money market instruments can be adversely affected when yields on eligible investments are low.

Performance
TOTAL RETURN PERFORMANCE DATA FOR MUTUAL OF AMERICA GROUP PRODUCTS (EXCEPT DEFINED BENEFIT AND PENSION INVESTMENT CONTRACT), SEP AND SIMPLE CONTRACTS SEPARATE ACCOUNT NO. 2 - STANDARD PRICING
AS OF 12/11/2019
periodvalue
Year to Date 15.47%
FOR PERIODS ENDED 11/30/2019
periodvalue
Prior 3 Months 4.88%
ANNUALIZED
periodvalue
Prior 1 Year 9.60%
Prior 3 Years 7.64%
Prior 5 Years 5.45%
Prior 10 Years 7.19%
Date of Inception1: 01/01/1985
1 Date of Inception shown is the date the Underlying Fund became available to the Separate Account, in accordance with a current SEC staff position. An Underlying Fund may have begun operations at an earlier date.

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and unit values will fluctuate so that units, when redeemed, may be worth more or less than their original cost. Investment Fund total return performance currently may be lower or higher than the figures stated above.

The total return performance data are based on a hypothetical investment of $1,000, which is redeemed at the end of the periods shown. The total return figures reflect the reinvestment of investment income and capital gains and losses, and are net of expenses which include a contract fee, an expense risk fee, administrative charges, a distribution expense charge and Underlying Funds fees and expenses.

The total return figures for periods extending beyond a year are average rates of return and do not reflect the Funds' actual year-to-year results, which varied over the periods shown. Contributions or withdrawals made within a period would experience different rates of return based on the unit values on the dates of such transactions.

Portfolio Information for the Composite Fund
Portfolio Turnover Rate

Portfolio Turnover Rate(%): 60%**Excludes all short-term securities.

Asset Allocation as of 10/31/2019 (reflects most recent information available)
Asset Type% of Portfolio
Equities59.8%
Fixed Income39.3%
Cash0.9%
The above Portfolio Information is provided to illustrate the types of securities in which the Portfolio may invest. The information is subject to change and may not represent the Portfolio's current or future holdings.
Equity Industry Allocation as of 10/31/2019
Industry% of Equity Holdings
Cash2.3%
Materials3.0%
Industrials8.7%
Communication Services4.8%
Consumer Discretionary9.3%
Consumer Staples5.1%
Energy6.8%
Financials12.2%
Health Care15.2%
Information Technology24.9%
Real Estate4.4%
Utilities3.5%
The above Portfolio Information is provided to illustrate the types of securities in which the Portfolio may invest. The information is subject to change and may not represent the Portfolio's current or future holdings.
Fixed Income Sector Allocation as of 10/31/2019
Sector% of Fixed IncomeHoldings
U.S. Govt. Treasuries42.4%
U.S. Govt. Agencies0.0%
Mortgage Backed27.9%
Industrial20.1%
Finance7.2%
Utilities1.3%
Municipals0.0%
Asset Backed0.6%
Cash0.5%
The above Portfolio Information is provided to illustrate the types of securities in which the Portfolio may invest. The information is subject to change and may not represent the Portfolio's current or future holdings.
Fixed Income Quality as of 10/31/2019
Rating% of Fixed IncomeHoldings
AAA1.4%
AA70.8%
A3.3%
BBB20.6%
BB2.3%
B and Below1.6%
The above Portfolio Information is provided to illustrate the types of securities in which the Portfolio may invest. The information is subject to change and may not represent the Portfolio's current or future holdings.
Equity Top Ten Holdings as of 10/31/2019 (reflects most recent information available)
Company % of Equity Holdings
Apple Inc6.2%
Microsoft Corp6.0%
Comcast Corp. Cl A2.8%
JP Morgan Chase & Co2.7%
Home Depot, Inc.2.7%
Visa Inc.2.5%
United Healthcare Corp.2.4%
BankAmerica Corp.2.2%
Marathon Petroleum Corp.2.0%
CitiGroup Inc1.9%
The above Portfolio Information is provided to illustrate the types of securities in which the Portfolio may invest. The information is subject to change and may not represent the Portfolio's current or future holdings.
Fixed Income Top Ten Holdings as of 10/31/2019 (reflects most recent information available)
Sector % of Fixed IncomeHoldings
US Treasury41.9%
FNMA (MBS)17.3%
FHLMC (MBS) 8.7%
GNMA (MBS)2.2%
Noble Corp0.6%
FHLMC (Agency)0.6%
Quest Diagnostics, Inc.0.6%
Packaging Corp of America0.6%
Molson Coors Brewing Co.0.6%
Dun & Bradstreet Corp.0.5%
The above Portfolio Information is provided to illustrate the types of securities in which the Portfolio may invest. The information is subject to change and may not represent the Portfolio's current or future holdings.
Manager Biography

Andrew L. Heiskell, Executive Vice President of the Adviser, has approximately 51 years of experience in selecting securities for, and managing, fixed-income portfolios. Mr. Heiskell has been employed by the Adviser since 1991. Jacqueline Sabella, Senior Vice President of the Adviser, joined the Adviser in January 2000, and has approximately 22 years of experience in selecting securities and managing fixed income portfolios. Joseph R. Gaffoglio, Executive Vice President of the Adviser, joined the Adviser in 2005 and has approximately 24 years of experience in the financial industry. Mr. Gaffoglio’s primary focus has been quantitative research and risk management. He has been responsible for managing the Retirement Funds and Allocation Funds since 2014 and the large cap portions of the All America Fund and Composite Fund since May 2016.

Before investing, you should carefully consider the investment objectives, risks, charges and expenses of the variable annuity contract and the underlying investment funds. This and other information is contained in the contract prospectus or brochure and underlying funds prospectuses and summary prospectuses. Please read the contract prospectus or brochure and underlying fund prospectuses and summary prospectuses carefully before investing. The contract prospectus or brochure and underlying fund prospectuses and summary prospectuses can be obtained by mail or by calling

Interest Account

Investment Options