Front Cover
Annual Report
AUL American Individual
Variable Annuity Unit Trust
December 31, 1999
This report and the financial statements contained herein are for the
general information of the Participants. The Report is not to be
distributed to prospective investors as sales literature unless accompanied
or preceded by an effective prospectus of AUL American Series Fund, Inc.
and AUL American Individual Variable Annuity Unit Trust, which contains
furher information concerning the sales charge, expenses and other
pertinent information.
American United Life Insurance Company
<PAGE>
A Message
From
The Chairman of the Board
and President of
AUL American Series Fund, Inc.
To Participants in AUL American Individual Variable Life Unit Trust
It is with great pleasure that I welcome you to the year 2000. Although
doomsayers hypothesized potential calamities due to year 2000 computer problems,
I am happy to announce an uneventful transition into this new era.
The year 1999 can be characterized by its excesses. Technology companies
rocketed to new highs even though the majority of stocks registered poor
performance. New records were set in the IPO (initial public offering) market
with well known names such as UPS and Goldman Sachs. Technology start-ups were
prolific as investors seemed to have an insatiable appetite for Internet
retailers, web-site operators and anything carrying the dot com title. It was
also the year of megamergers, the launch of the euro, and the recovery from
Asias financial woes.
The U.S. economic environment has also been unique in that it is nearing the end
of nine years of expansion, soon to be the longest period of economic growth on
record. The fact that our economy has endured only eight months of recession
since 1982 is another unparalleled feat.
Good economic news can mean tough times for the bond market as investors worry
about the potential for an increase in inflation. The sharp 179 basis point
increase in the ten-year Treasury yield to 6.44% last year reflects this
concern.
Although inflation has not been a problem up to now, the Federal Reserve Board
felt compelled to take a pre-emptive stance last year by raising the Federal
Funds rate on three different occasions. The continued momentum of the economy
suggests that the Feds credit tightening had little apparent impact. The
Federal Reserve is expected to raise rates further this year to help achieve a
sustainable rate of economic growth.
Most economists are expecting the economy to continue on its current path, but
to moderate somewhat from current levels. The equity market is also expected to
report positive returns, but could experience a change or moderation in
leadership. Bonds will ultimately benefit if the Federal Reserve is successful
in slowing economic growth. For now, however, bond market investors remain
cautious. In closing, American United Life remains committed to serving your
investment needs. We appreciate your continued confidence and support.
/s/ James W. Murphy
James W. Murphy
Chairman of the Board of Directors and President
Indianapolis, Indiana
January 31, 2000
1
<PAGE>
Report of Independent Accountants
The Contract Owners of
AUL American Individual Variable Life Unit Trust and
Board of Directors of
American United Life Insurance Company
In our opinion, the accompanying statements of net assets, and the related
statements of operations and of changes in net assets present fairly, in all
material respects, the financial position of AUL American Individual Variable
Life Unit Trust at December 31, 1999, the results of its operations and changes
in its net assets for each of the periods indicated, in conformity with
accounting principles generally accepted in the United States. These financial
statements are the responsibility of the Trusts management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with auditing
standards generally accepted in the United States which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 1999, by correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.
/s/ PriceWaterhouseCoopers LLP
Indianapolis, Indiana
February 9, 2000
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Life Unit Trust
statementS of net assets
December 31, 1999
AUL American Series Fund Fidelity
Equity Money Market Bond Managed High Income Growth
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 219,124 $ 566,688 $ 291,712 $ 115,714 $ 252,252 $ 2,112,819
Net assets $ 219,124 $ 566,688 $ 291,712 $ 115,714 $ 252,252 $ 2,112,819
Units outstanding 45,743 524,272 55,559 23,158 51,508 253,462
Accumulation unit value $ 4.79 $ 1.08 $ 5.25 $ 5.00 $ 4.90 $ 8.34
</TABLE>
<TABLE>
<CAPTION>
Fidelity
Overseas Asset Manager Index 500 Equity-Income Contrafund Money Market
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 93,610 $ 620,132 $ 2,571,273 $ 657,072 $ 1,550,256 $ 660,028
Net assets $ 93,610 $ 620,132 $ 2,571,273 $ 657,072 $ 1,550,256 $ 660,028
Units outstanding 13,651 104,578 382,005 123,025 217,776 609,705
Accumulation unit value $ 6.86 $ 5.93 $ 6.73 $ 5.34 $ 7.12 $ 1.08
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Life Unit Trust
statementS of net assets (continued)
December 31, 1999
American Century Alger T. Rowe Price
VP Capital VP VP Income American
AppreciationInternational and Growth Growth Equity income
<S> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 16,925 $ 321,165 $ 20,003 $ 3,119,899 $ 668,840
Net assets $ 16,925 $ 321,165 $ 20,003 $ 3,119,899 $ 668,840
Units outstanding 2,261 39,483 3,631 370,125 128,167
Accumulation unit value $ 7.49 $ 8.13 $ 5.51 $ 8.43 $ 5.22
</TABLE>
<TABLE>
<CAPTION>
Janus SAFECO
Worldwide Flexible
Growth Income Equity Growth
<S> <C> <C> <C> <C>
Assets:
Investments at value $ 308,229 $ 3,373 $ 30,282 $ 36,479
Net assets $ 308,229 $ 3,373 $ 30,282 $ 36,479
Units outstanding 40,756 674 6,143 6,342
Accumulation unit value $ 7.56 $ 5.01 $ 4.93 $ 5.75
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Life Unit Trust
statementS of OPERATIONS
For the year ended December 31, 1999
AUL American Series Fund Fidelity
Equity Money Market Bond Managed High Income Growth
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividend income $ 43,597 $ 14,365 $ 17,019 $ 16,596 $ 3,310 $ 19,252
Net investment
income 43,597 14,365 17,019 16,596 3,310 19,252
Gain (loss) on investments:
Net realized gain (loss) 3,346 0 (1,456) 905 1,107 19,610
Net change in unrealized
appreciation
(depreciation) (50,274) 0 (18,163) (19,154) 298 364,946
Net gain (loss) (46,928) 0 (19,619) (18,249) 1,405 384,556
Increase (decrease) in
net assets from operations$ (3,331)$ 14,365 $ (2,600) $ (1,653) $ 4,715 $ 403,808
</TABLE>
<TABLE>
<CAPTION>
Fidelity
Overseas Asset Manager Index 500 Equity-Income Contrafund Money Market
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividend income $ 618 $ 13,510 $ 25,695 $ 9,291 $ 8,511 $ 8,685
Net investment
income 618 13,510 25,695 9,291 8,511 8,685
Gain (loss) on investments:
Net realized gain (loss) 1,077 8,615 317,655 20,131 37,542 0
Net change in unrealized
appreciation
(depreciation) 19,613 36,064 142,114 (18,678) 188,337 0
Net gain (loss) 20,690 44,679 459,769 1,453 225,879 0
Increase (decrease) in
net assets from operations$ 21,308 $ 58,189 $ 485,464 $ 10,744 $ 234,390 $ 8,685
</TABLE>
The accompanying notes are an integral part of the financical statements.
5
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Life Unit Trust
statementS of OPERATIONS (continued)
For the year ended December 31, 1999
American Century Alger T. Rowe Price
VP Capital VP VP Income American
AppreciationInternational and Growth Growth Equity income
<S> <C> <C> <C> <C> <C>
Investment income:
Dividend income $ 0 $ 0 $ 0 $ 116,780 $ 35,658
Net investment
income 0 0 0 116,780 35,658
Gain (loss) on investments:
Net realized gain (loss) 5,304 18,073 4 63,125 16,123
Net change in unrealized
appreciation
(depreciation) 5,014 105,372 1,687 377,383 (43,786)
Net gain (loss) 10,318 123,445 1,691 440,508 (27,663)
Increase (decrease) in
net assets from operations$ 10,318 $ 123,445 $ 1,691 $ 557,288 $ 7,995
</TABLE>
<TABLE>
<CAPTION>
Janus SAFECO
Worldwide Flexible
Growth Income Equity Growth
<S> <C> <C> <C> <C>
Investment income:
Dividend income $ 22 $ 115 $ 1,607 $ 0
Net investment
income 22 115 1,607 0
Gain (loss) on investments:
Net realized gain (loss) 575 (2) (38) (35)
Net change in unrealized
appreciation
(depreciation) 72,199 (71) (1,354) 4,699
Net gain (loss) 72,774 (73) (1,392) 4,664
Increase (decrease) in
net assets from operations$ 72,796 $ 42 $ 215 $ 4,664
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Life Unit Trust
statementS of changes in net assets
AUL American Series Fund
Equity Money Market Bond
For the period For the period For the period
Year from 4/30/98 Year from 4/30/98 Year from 4/30/98
ended (commencement) ended (commencement) ended (commencement)
12/31/99 to 12/31/98 12/31/99 to 12/31/98 12/31/99 to 12/31/98
<S> <C> <C> <C> <C> <C>
Increase in net assets
from operations:
Net investment income $ 43,597 $ 8,675 $ 14,365 $ 1,077 $ 17,019 $ 1,028
Net realized gain (loss) 3,346 (230) 0 0 (1,456) 390
Net change in unrealized
appreciation (depreciation) (50,274) 911 0 0 (18,163) (649)
Increase (decrease)
in net assets
from operations (3,331) 9,356 14,365 1,077 (2,600) 769
Contract owner transactions:
Proceeds from units sold 207,393 116,012 1,237,777 235,711 426,622 140,768
Cost of units redeemed (56,971) (26,360) (780,195) (99,765) (150,031) (104,420)
Account charges (23,586) (3,389) (36,264) (6,018) (18,020) (1,376)
Increase 126,836 86,263 421,318 129,928 258,571 34,972
Net increase 123,505 95,619 435,683 131,005 255,971 35,741
Net assets, beginning 95,619 0 131,005 0 35,741 0
Net assets, ending $ 219,124 $ 95,619 $ 566,688 $ 131,005 $ 291,712 $ 35,741
Units sold 42,357 26,537 1,167,898 229,979 78,726 26,926
Units redeemed (16,424) (6,727) (770,487) (103,118) (29,899) (20,194)
Net increase 25,933 19,810 397,411 126,861 48,827 6,732
Units outstanding, beginning 19,810 0 126,861 0 6,732 0
Units outstanding, ending 45,743 19,810 524,272 126,861 55,559 6,732
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Life Unit Trust
statementS of changes in net assets (continued)
AUL American Series Fund Fidelity
Managed High Income Growth
For the period For the period For the period
Year from 4/30/98 Year from 4/30/98 Year from 4/30/98
ended (commencement) ended (commencement) ended (commencement)
12/31/99 to 12/31/98 12/31/99 to 12/31/98 12/31/99 to 12/31/98
<S> <C> <C> <C> <C> <C> <C>
Increase in net assets
from operations:
Net investment income $ 16,596 $ 1,892 $ 3,310 $ 0 $ 19,252 $ 0
Net realized gain (loss) 905 75 1,107 (295) 19,610 318
Net change in unrealized
appreciation (depreciation) (19,154) 608 298 1,954 364,946 17,221
Increase (decrease)
in net assets
from operations (1,653) 2,575 4,715 1,659 403,808 17,539
Contract owner transactions:
Proceeds from units sold 103,312 30,838 238,591 27,265 1,866,904 118,862
Cost of units redeemed (5,521) (2,548) (2,650) (257) (118,567) (106)
Account charges (9,616) (1,673) (14,906) (2,165) (168,497) (7,124)
Increase 88,175 26,617 221,035 24,843 1,579,840 111,632
Net increase 86,522 29,192 225,750 26,502 1,983,648 129,171
Net assets, beginning 29,192 0 26,502 0 129,171 0
Net assets, ending $ 115,714 $ 29,192 $ 252,252 $ 26,502 $ 2,112,819 $ 129,171
Units sold 20,322 6,673 49,349 6,401 272,854 22,644
Units redeemed (2,966) (871) (3,693) (549) (40,681) (1,355)
Net increase 17,356 5,802 45,656 5,852 232,173 21,289
Units outstanding, beginning 5,802 0 5,852 0 21,289 0
Units outstanding, ending 23,158 5,802 51,508 5,852 253,462 21,289
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Life Unit Trust
statementS of changes in net assets (continued)
Fidelity
Overseas Asset Manager Index 500
For the period For the period For the period
Year from 4/30/98 Year from 4/30/98 Year from 4/30/98
ended (commencement) ended (commencement) ended (commencement)
12/31/99 to 12/31/98 12/31/99 to 12/31/98 12/31/99 to 12/31/98
<S> <C> <C> <C> <C> <C> <C>
Increase in net assets
from operations:
Net investment income $ 618 $ 0 $ 13,510 $ 0 $ 25,695 $ 0
Net realized gain (loss) 1,077 97 8,615 (108) 317,655 5,321
Net change in unrealized
appreciation (depreciation) 19,613 704 36,064 9,675 142,114 133,825
Increase (decrease)
in net assets
from operations 21,308 801 58,189 9,567 485,464 139,146
Contract owner transactions:
Proceeds from units sold 75,130 13,531 798,416 130,304 2,399,327 1,314,494
Cost of units redeemed (6,006) (60) (320,939) (2,218) (1,462,484) (1,971)
Account charges (9,654) (1,440) (46,446) (6,741) (268,720) (33,983)
Increase 59,470 12,031 431,031 121,345 668,123 1,278,540
Net increase 80,778 12,832 489,220 130,912 1,153,587 1,417,686
Net assets, beginning 12,832 0 130,912 0 1,417,686 0
Net assets, ending $ 93,610 $ 12,832 $ 620,132 $ 130,912 $ 2,571,273 $ 1,417,686
Units sold 13,855 2,998 146,259 26,314 399,752 260,809
Units redeemed (2,872) (330) (66,205) (1,790) (271,569) (6,987)
Net increase 10,983 2,668 80,054 24,524 128,183 253,822
Units outstanding, beginning 2,668 0 24,524 0 253,822 0
Units outstanding, ending 13,651 2,668 104,578 24,524 382,005 253,822
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Life Unit Trust
statementS of changes in net assets (continued)
Fidelity
Equity-Income Contrafund Money Market
For the period For the period For the period
Year from 4/30/98 Year from 4/30/98 Year from 4/30/98
ended (commencement) ended (commencement) ended (commencement)
12/31/99 to 12/31/98 12/31/99 to 12/31/98 12/31/99 to 12/31/98
<S> <C> <C> <C> <C> <C> <C>
Increase in net assets
from operations:
Net investment income $ 9,291 $ 0 $ 8,511 $ 0 $ 8,685 $ 109
Net realized gain (loss) 20,131 382 37,542 201 0 0
Net change in unrealized
appreciation (depreciation) (18,678) 15,629 188,337 22,720 0 0
Increase (decrease)
in net assets
from operations 10,744 16,011 234,390 22,921 8,685 109
Contract owner transactions:
Proceeds from units sold 565,651 152,705 1,455,091 175,608 1,778,930 40,979
Cost of units redeemed (18,849) (2,283) (168,982) (20,791) (1,135,715) (14,744)
Account charges (58,245) (8,662) (136,410) (11,571) (16,949) (1,267)
Increase 488,557 141,760 1,149,699 143,246 626,266 24,968
Net increase 499,301 157,771 1,384,089 166,167 634,951 25,077
Net assets, beginning 157,771 0 166,167 0 25,077 0
Net assets, ending $ 657,072 $ 157,771 $ 1,550,256 $ 166,167 $ 660,028 $ 25,077
Units sold 105,987 33,752 237,511 35,686 1,648,891 39,905
Units redeemed (14,367) (2,347) (48,739) (6,682) (1,063,389) (15,702)
Net increase 91,620 31,405 188,772 29,004 585,502 24,203
Units outstanding, beginning 31,405 0 29,004 0 24,203 0
Units outstanding, ending 123,025 31,405 217,776 29,004 609,705 24,203
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Life Unit Trust
statementS of changes in net assets (continued)
American Century
VP Income
VP Capital Appreciation VP International and Growth
For the period For the periodFor the period
Year from 4/30/98 Year from 4/30/98 from 5/01/99
ended (commencement) ended (commencement)(commencement)
12/31/99 to 12/31/98 12/31/99 to 12/31/98 to 12/31/99
<S> <C> <C> <C> <C> <C>
Increase in net assets
from operations:
Net investment income $ 0 $ 0 $ 0 $ 0 $ 0
Net realized gain (loss) 5,304 (18) 18,073 (2,322) 4
Net change in unrealized
appreciation (depreciation) 5,014 595 105,372 6,162 1,687
Increase (decrease)
in net assets
from operations 10,318 577 123,445 3,840 1,691
Contract owner transactions:
Proceeds from units sold 42,340 5,709 254,605 111,903 19,880
Cost of units redeemed (34,831) 0 (112,718) (25,776) (29)
Account charges (5,390) (1,798) (28,459) (5,675) (1,539)
Increase 2,119 3,911 113,428 80,452 18,312
Net increase 12,437 4,488 236,873 84,292 20,003
Net assets, beginning 4,488 0 84,292 0 0
Net assets, ending $ 16,925 $ 4,488 $ 321,165 $ 84,292 $ 20,003
Units sold 9,154 1,437 48,485 24,233 3,938
Units redeemed (7,879) (451) (26,000) (7,235) (307)
Net increase 1,275 986 22,485 16,998 3,631
Units outstanding, beginning 986 0 16,998 0 0
Units outstanding, ending 2,261 986 39,483 16,998 3,631
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Life Unit Trust
statementS of changes in net assets (continued)
Alger T. Rowe Price Janus
Worldwide Flexible
American Growth Equity Income Growth Income
For the period For the periodFor the periodFor the period
Year from 4/30/98 Year from 4/30/98 from 5/01/99 from 5/01/99
ended (commencement) ended (commencement)(commencement)(commencement)
12/31/99 to 12/31/98 12/31/99 to 12/31/98 to 12/31/99 to 12/31/99
<S> <C> <C> <C> <C> <C> <C>
Increase in net assets
from operations:
Net investment income $ 116,780 $ 0 $ 35,658 $ 7,760 $ 22 $ 115
Net realized gain (loss) 63,125 602 16,123 59 575 (2)
Net change in unrealized
appreciation (depreciation) 377,383 43,233 (43,786) 7,033 72,199 (71)
Increase (decrease)
in net assets
from operations 557,288 43,835 7,995 14,852 72,796 42
Contract owner transactions:
Proceeds from units sold 2,774,560 248,390 575,813 245,481 257,209 4,127
Cost of units redeemed (227,874) (2,128) (75,474) (17,564) (8,331) (10)
Account charges (256,867) (17,305) (71,247) (11,016) (13,445) (786)
Increase 2,289,819 228,957 429,092 216,901 235,433 3,331
Net increase 2,847,107 272,792 437,087 231,753 308,229 3,373
Net assets, beginning 272,792 0 231,753 0 0 0
Net assets, ending $ 3,119,899 $ 272,792 $ 668,840 $ 231,753 $ 308,229 $ 3,373
Units sold 393,801 46,809 109,803 52,124 44,298 835
Units redeemed (66,959) (3,526) (27,698) (6,062) (3,542) (161)
Net increase 326,842 43,283 82,105 46,062 40,756 674
Units outstanding, beginning 43,283 0 46,062 0 0 0
Units outstanding, ending 370,125 43,283 128,167 46,062 40,756 674
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Life Unit Trust
statementS of changes in net assets (continued)
SAFECO
Equity Growth
For the periodFor the period
from 5/01/99from 5/01/99
(commencement)(commencement)
to 12/31/99 to 12/31/99
<S> <C> <C>
Increase in net assets
from operations:
Net investment income $ 1,607 $ 0
Net realized gain (loss) (38) (35)
Net change in unrealized
appreciation (depreciation) (1,354) 4,699
Increase (decrease)
in net assets
from operations 215 4,664
Contract owner transactions:
Proceeds from units sold 33,302 38,317
Cost of units redeemed (24) (3,425)
Account charges (3,211) (3,077)
Increase 30,067 31,815
Net increase 30,282 36,479
Net assets, beginning 0 0
Net assets, ending $ 30,282 $ 36,479
Units sold 6,812 7,622
Units redeemed (669) (1,280)
Net increase 6,143 6,342
Units outstanding, beginning 0 0
Units outstanding, ending 6,143 6,342
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
notes to financial statements
1. Summary of Significant Accounting Policies
The AUL American Individual Variable Life Unit Trust (Variable Account) was
established by American United Life Insurance Company (AUL) on July 10,
1997, under procedures established by Indiana law and is registered as a
unit investment trust under the Investment Company Act of 1940, as amended.
The Variable Account commenced operations on April 30, 1998. The Variable
Account is a segregated investment account for individual variable life
insurance contracts issued by AUL and invests exclusively in shares of
mutual fund portfolios offered by the AUL American Series Fund, Inc. (AUL
American Series Fund), Fidelity Variable Insurance Products Fund
(Equity-Income, Growth, High Income, Overseas) and Fidelity Variable
Insurance Products Fund II(Asset Manager, Contrafund, Index 500)
(Fidelity), American Century Variable Portfolios, Inc. (American Century),
Alger American Fund (Alger), Janus Aspen Series (Janus), SAFECO Resources
Series Trust (SAFECO), and T. Rowe Price Equity Series, Inc. (T. Rowe
Price).
Security Valuation Transactions and Related Income
The market value of investments is based on the closing bid prices at
December 31, 1999. Investment transactions are accounted for on the trade
date and dividend income is recorded on the ex-dividend date.
Taxes
Operations of the Variable Account are part of, and are taxed with, the
operations of AUL, which is taxed as a life insurance company under the
Internal Revenue Code. Under current law, investment income, including
realized and unrealized capital gains of the investment accounts, is not
taxed to AUL to the extent it is applied to increase reserves under the
contracts. The Variable Account has not been charged for federal and state
income taxes since none have been imposed.
Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results
could differ from those estimates.
2. Account Charges
With respect to variable life insurance policies funded by the variable
account, total account charges for the years ended December 31, 1999 and
December 31, 1998 were $1,191,334 and $196,233, respectively. Deductions
are described as follows:
Modified Single Premium Policy: AUL assesses (1) cost of insurance charges,
(2) monthly administrative charges not to exceed 0.40% of the account value
on an annual basis, (3) mortality and expense risk charges of 0.90% per
year for the first 10 policy years and 0.80% per year thereafter, (4)
federal tax charges equal to 0.15% of the account value each year for the
first 10 years, (5) an annual contract charge of $30.00 each year in which
an individual policys account value does not exceed a specific amount, and
(6) in the event of a surrender, a surrender charge of 10% reducing to 0%
of premium surrendered, depending upon policy duration. The cost of
additional policy riders is assessed on a monthly basis and will vary
depending upon the riders chosen.
Flexible Premium Adjustable Policy: AUL assesses (1) cost of insurance
charges, (2) monthly administrative charges of $30.00 per month in the
first year and $5.00 per month thereafter, (3) mortality and expense risk
charges of 0.75% per year for the first 10 policy years and 0.25%
thereafter, (4) an annual contract charge of $30.00 each year in which an
individual policys account value does not exceed a specific amount, and
(5) in the event of a surrender, 100% of target premium for the first five
contract years, reduced by 10% each year for contract years 6 through 15.
The cost of additional policy riders is assessed on a monthly basis and
will vary depending upon the riders chosen.
14
<PAGE>
notes to financial statements (continued)
3. Accumulation Unit Value The change in the Accumulation Unit Value per unit
for the year ended December 31, 1999, or from commencement of operation,
May 1, 1999 through December 31, 1999.
12/31/99 12/31/98 Change
AUL American Series Fund:
Equity $ 4.790429 $ 4.826818 (0.8%)
Money Market 1.081055 1.032790 4.7%
Bond 5.250403 5.309238 (1.1%)
Managed 4.996810 5.031288 (0.7%)
Fidelity:
High Income 4.897979 4.528671 8.2%
Growth 8.335727 6.065156 37.4%
Overseas 6.857656 4.808152 42.6%
Asset Manager 5.930109 5.338035 11.1%
Index 500 6.730730 5.585215 20.5%
Equity Income 5.341704 5.023715 6.3%
Contrafund 7.118542 5.729026 24.3%
Money Market 1.089793 1.036145 5.2%
American Century:
VP Capital
Appreciation 7.487388 4.550963 64.5%
VP International 8.134571 4.958841 64.0%
Alger:
American Growth 8.429238 6.302550 33.7%
T. Rowe Price:
Equity Income 5.218486 5.031378 3.7%
12/31/99 5/01/99 Change
American Century:
VP Income
and Growth $ 5.509636 $ 5.000000 10.2%
Janus:
Worldwide Growth 7.564515 5.000000 51.3%
Flexible Income 5.005508 5.000000 0.1%
SAFECO:
Equity 4.929132 5.000000 (1.4%)
Growth 5.751535 5.000000 15.0%
4. Cost of Investments
The cost of investments at December 31, 1999 is:
AUL American Series Fund:
Equity $ 268,487
Money Market 566,688
Bond 310,524
Managed 134,260
Fidelity:
High Income 250,000
Growth 1,730,652
Overseas 73,293
Asset Manager 574,393
Index 500 2,295,335
Fidelity: (continued)
Equity Income $ 660,121
Contrafund 1,339,199
Money Market 660,028
American Century:
VP Capital
Appreciation 11,317
VP International 209,631
VP Income
and Growth 18,316
Alger:
American Growth $ 2,699,283
T. Rowe Price:
Equity Income 705,593
Janus:
Worldwide
Growth 236,030
Flexible Income 3,444
SAFECO:
Equity 31,636
Growth 31,780
15
<PAGE>
notes to financial statements (continued)
5. Net Assets
Net Assets at December 31, 1999 are:
<TABLE>
<CAPTION>
AUL American Series Fund Fidelity
Equity Money Market Bond Managed High Income Growth
<S> <C> <C> <C> <C> <C> <C>
Proceeds from units sold $ 323,407 $ 1,473,488 $ 567,389 $ 134,151 $ 265,857 $ 1,985,768
Cost of units redeemed (83,332) (879,960) (254,452) (8,069) (2,907) (118,673)
Account charges (26,976) (42,283) (19,395) (11,290) (17,072) (175,621)
Net investment income 52,272 15,443 18,047 18,488 3,310 19,251
Net realized gain (loss) 3,116 0 (1,065) 980 812 19,927
Unrealized appreciation
(depreciation) (49,363) 0 (18,812) (18,546) 2,252 382,167
$ 219,124 $ 566,688 $ 291,712 $ 115,714 $ 252,252 $ 2,112,819
</TABLE>
<TABLE>
<CAPTION>
Fidelity
Overseas Asset Manager Index 500 Equity-income Contrafund Money Market
<S> <C> <C> <C> <C> <C> <C>
Proceeds from units sold $ $88,663 $ 928,723 $ 3,713,822 $ 718,355 $ 1,630,699 $ 1,819,909
Cost of units redeemed (6,067) (323,157) (1,464,455) (21,131) (189,773) (1,150,458)
Account charges (11,095) (53,189) (302,703) (66,907) (147,981) (18,217)
Net investment income 618 13,510 25,695 9,291 8,511 8,794
Net realized gain (loss) 1,174 8,506 322,976 20,513 37,743 0
Unrealized appreciation
(depreciation) 20,317 45,739 275,938 (3,049) 211,057 0
$ 93,610 $ 620,132 $ 2,571,273 $ 657,072 $ 1,550,256 $ 660,028
</TABLE>
<TABLE>
<CAPTION>
American Century Alger T. Rowe Price
VP Capital VP VP Income American
AppreciationInternational and Growth Growth Equity Income
<S> <C> <C> <C> <C> <C>
Proceeds from units sold $ 48,050 $ 366,508 $ 19,880 $ 3,022,950 $ 821,294
Cost of units redeemed (34,831) (138,495) (29) (230,002) (93,038)
Account charges (7,189) (34,134) (1,539) (274,172) (82,262)
Net investment income 0 0 0 116,780 43,417
Net realized gain (loss) 5,287 15,752 4 63,727 16,182
Unrealized appreciation
(depreciation) 5,608 111,534 1,687 420,616 (36,753)
$ 16,925 $ 321,165 $ 20,003 $ 3,119,899 $ 668,840
</TABLE>
<TABLE>
<CAPTION>
Janus SAFECO
Worldwide
Growth Flexible Income Equity Growth
<S> <C> <C> <C> <C>
Proceeds from units sold $ 257,209 $ 4,127 $ 33,302 $ 38,317
Cost of units redeemed (8,331) (10) (24) (3,425)
Account charges (13,445) (786) (3,211) (3,077)
Net investment income 22 115 1,607 0
Net realized gain (loss) 575 (2) (38) (35)
Unrealized appreciation
(depreciation) 72,199 (71) (1,354) 4,699
$ 308,229 $ 3,373 $ 30,282 $ 36,479
</TABLE>
16
<PAGE>
American United Life Insurance Company
One American Square
P.O. Box 368
Indianapolis, Indiana 46206-0368
www.aul.com
Form 7-14699A (1/00)
Back cover
<PAGE>
