Vanguard VIF Diversified Value Portfolio

Vanguard

Investment Objective

The Portfolio seeks to provide long-term capital appreciation and income.

Principal Investment Strategies

The Portfolio invests mainly in large- and mid capitalization whose stocks are considered by an advisor to be undervalued. Undervalued stocks are generally those that are out of favor with investors and that the advisor believes are trading at prices that are below average in relation to measures such as earnings and book value. These stocks often have above-average dividend yields.

The Portfolio uses multiple investment advisors. Each advisor independently selects and maintains a portfolio of common stocks for the Portfolio.

Principal Investment Risks

An investment in the Fund is subject to the following risks which are described in more detail in the Statutory Prospectus.

An investment in the Portfolio could lose money over short or long periods of time. You should expect the Portfolio's share price and total return to fluctuate within a wide range. The Portfolio is subject to the following risks, which could affect the Portfolio’s performance:

  • Stock market risk, which is the chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices.
  • Investment style risk, which is the chance that returns from large- and mid-capitalization value stocks will trail returns from the overall stock market. Large- and mid-cap value stocks each tend to go through cycles of doing better—or worse—than other segments of the stock market or the stock market in general. These periods have, in the past, lasted for as long as several years. Historically, mid-cap value stocks have been more volatile in price than large-cap value stocks. The stock prices of mid-size companies tend to experience greater volatility because, among other things, these companies tend to be more sensitive to changing economic conditions.
  • Manager risk, which is the chance that poor security selection will cause the Portfolio to underperform relevant benchmarks or other funds with a similar investment objective.

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 8/13/2020
periodvalue
Year to Date -4.65%
FOR PERIODS ENDED 07/31/2020
periodvalue
Prior 3 Months 9.72%
ANNUALIZED
periodvalue
Prior 1 Year -1.71%
Prior 3 Years 2.60%
Prior 5 Years 3.85%
Prior 10 Years 8.35%
Date of Inception1: 07/01/2005
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 Vanguard VIF Diversified Value Portfolio
Portfolio Turnover Rate

Portfolio Turnover Rate(%): 18%**Excludes all short-term securities.

Industry Allocation as of 3/31/2020
Industry% of Portfolio
Cash6.2%
Materials1.3%
Industrials9.1%
Communication Services8.3%
Consumer Discretionary9.7%
Consumer Staples6.7%
Energy3.7%
Financials17.3%
Health Care14.9%
Information Technology21.5%
Utilities1.3%
Real Estate0.0%
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.
Top Ten Holdings as of 3/31/2020 (reflects most recent information available)
Company % of Portfolio
Microsoft Corp.6.3%
Alphabet Inc.4.2%
Bank of America Corp.2.7%
Medtronic Plc.2.7%
Coca-Cola Co.2.6%
Johnson & Johnson2.6%
Intercontinental Exchange Inc.2.3%
General Electric Co.0.0%
Apple Inc.0.0%
Honeywell International Inc.1.9%
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.
Manager Biography

George H. Davis, Jr., Chief Executive Officer of Hotchkis and Wiley. He has worked in investment management since 1983, has been with Hotchkis and Wiley since 1988, and has co-managed a portion of the Portfolio since December2019. Education: B.A. and M.B.A., Stanford University. Scott McBride, CFA, President and Portfolio Manager of Hotchkis and Wiley. He has worked in investment management since joining Hotchkis and Wiley in2001, has managed investment portfolios since 2004, and has co-managed a portion of the Portfolio since December 2019. Education: B.A., Georgetown University; M.B.A., Columbia University. Andrew Lacy, Deputy Chairman of Lazard. He has worked in investment management for Lazard since 1995 and has co-managed a portion of the Portfolio since December 2019. Education: B.A., Wesleyan University; M.B.A., Columbia University. Ronald Temple, Managing Director of Lazard. He has worked in investment management since 1991, has managed investment portfolios since he joined Lazard in 2001, and has co-managed a portion of the Portfolio since December2019. Education: B.A., Duke University; M.P.P., Harvard University.

You should consider the investment objectives, risks, and charges and expenses of the variable annuity contract and the underlying investment funds carefully before investing. This and other information is contained in the contract prospectus or brochure and underlying funds prospectuses and summary prospectuses, which can be obtained by calling 800.468.3785 or visiting mutualofamerica.com. Read them carefully before investing.

Investment Options