Semi-Annual Report
AUL American Individual
Variable Life Unit Trust
June 30, 2000
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 Life Unit Trust, which contains further 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
Recent evidence suggests the growth rate of the U.S. economy is finally
moderating as consumer spending and residential real estate activity slowed
during the second quarter. Although second quarter GDP rose at a 5.2% annualized
rate, many economists believe economic growth during the second half of this
year will slow to a more moderate 3.5% to 4.0% rate, well within the Federal
Reserve's estimate of the non-inflationary growth potential for our economy.
Federal Reserve intervention is a primary factor contributing to this slowdown.
Fearing that inflationary pressures were mounting, Fed officials raised the
Federal Funds rate by 175 basis points during the past twelve months. The goal
was to orchestrate a "soft landing" by slowing growth just enough to cut off
inflationary pressures while keeping unemployment stable.
During the first half of 2000, the equity market resembled a roller coaster ride
as investors rotated repeatedly between "New Economy" stocks (primarily
technology and growth companies) and "Old Economy" stocks (economically
sensitive, value companies). The NASDAQ Composite, an index that is heavily
weighted in technology companies, experienced extremely volatile returns during
the first half of the year. Investors poured a great deal of money into
technology stocks, pushing this index up 24% from the beginning of the year to
its peak on March 10. The NASDAQ subsequently experienced a dramatic sell-off
during April and May and although a recovery occurred in late May, this index
still reported negative investment returns for the first six months of the year.
The S&P 500 and the Dow Jones Industrial Average, two other commonly quoted
equity benchmarks, also experienced negative returns during the first half of
the year.
Treasuries were the best performing sector of the bond market, outpacing
corporate bonds and mortgage-backed securities by a wide margin. The huge
federal government surplus has drastically reduced the supply of Treasuries.
Government buy backs of existing long Treasury issues helped boost thirty-year
Treasuries returns to 9.8% in the first half of the year, well ahead of the 4.0%
return for the Lehman Aggregate Bond Index as well as the returns of major stock
indices.
The late 1990s handsomely rewarded equity investors. Based on this experience,
many investors now consider 20% annual returns to be "normal." Since major
equity indices were still in negative territory for the first half of the year,
the equity market may have trouble repeating this remarkable performance in the
current year.
Signs of a slowing economy have raised the hopes of many bond investors that the
Federal Reserve Bank has won the battle against inflation, eliminating the need
for further short-term interest rate increases. The question remains, however,
whether inflation has truly been suppressed given the low 4% unemployment rate
in the U.S., higher energy prices, and mounting global economic strength.
In closing, American United Life remains committed to serving your investment
needs. We appreciate your continued confidence and support.
/s/ R. Stephen Radcliffe
R. Stephen Radcliffe
Chairman of the Board of Directors and President
Indianapolis, Indiana
July 31, 2000
1
<PAGE>
(This page is intentionally blank.)
2
<PAGE>
AUL American Individual Variable Life Unit Trust
STATEMENTS OF NET ASSETS
June 30, 2000
(unaudited)
<TABLE>
<CAPTION>
AUL American Series Fund Fidelity
Equity Money Market Bond Managed High Income Growth
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 238,307 $ 672,931 $ 409,712 $ 87,616 $ 310,874 $ 3,284,180
Net assets $ 238,307 $ 672,931 $ 409,712 $ 87,616 $ 310,874 $ 3,284,180
Units outstanding 51,678 605,723 75,308 17,584 66,708 374,821
Accumulation unit value $ 4.61 $ 1.11 $ 5.44 $ 4.98 $ 4.66 $ 8.76
</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 $ 275,519 $ 902,047 $ 3,958,744 $ 760,442 $ 2,309,541 $ 326,255
Net assets $ 275,519 $ 902,047 $ 3,958,744 $ 760,442 $ 2,309,541 $ 326,255
Units outstanding 42,321 153,170 591,590 146,281 328,745 292,515
Accumulation unit value $ 6.51 $ 5.89 $ 6.69 $ 5.20 $ 7.03 $ 1.12
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
AUL American Individual Variable Life Unit Trust
STATEMENTS OF NET ASSETS (continued)
June 30, 2000 (unaudited)
<TABLE>
<CAPTION>
American Century Alger
VP Capital VP VP Income American American
Appreciation International and Growth Growth Small Cap
<S> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 19,699 $ 557,179 $ 162,024 $ 5,003,800 $ 163
Net assets $ 19,699 $ 557,179 $ 162,024 $ 5,003,800 $ 163
Units outstanding 2,241 72,879 30,498 573,601 31
Accumulation unit value $ 8.79 $ 7.65 $ 5.31 $ 8.72 $ 5.21
</TABLE>
<TABLE>
<CAPTION>
T. Rowe Price Janus
Limited Term Mid-Cap Worldwide Flexible
Equity Income Bond Growth Growth Income
<S> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 820,491 $ - $ 150 $ 1,380,942 $ 73,353
Net assets $ 820,491 $ - $ 150 $ 1,380,942 $ 73,353
Units outstanding 161,663 - 30 178,864 14,477
Accumulation unit value $ 5.08 $ 5.09 $ 4.97 $ 7.72 $ 5.07
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
AUL American Individual Variable Life Unit Trust
STATEMENTS OF NET ASSETS(continued)
June 30, 2000
(unaudited)
<TABLE>
<CAPTION>
SAFECO PBHG
<S> <C> <C> <C> <C>
Tech. &
Equity Growth Growth II Comm.
Assets:
Investments at value $ 157,279 $ 341,822 $ 28,199 $ 196,267
Net assets $ 157,279 $ 341,822 $ 28,199 $ 196,267
Units outstanding 32,861 58,572 4,953 36,094
Accumulation unit value $ 4.79 $ 5.84 $ 5.69 $ 5.44
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
AUL American Individual Variable Life Unit Trust
STATEMENTS OF OPERATIONS
For six months ended June 30, 2000
(unaudited)
<TABLE>
<CAPTION>
AUL American Series Fund Fidelity
Equity Money Market Bond Managed High Income Growth
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividend income $ - $ 13,671 $ 1,013 $ - $ 17,066 $ 265,242
Net investment
income - 13,671 1,013 - $ 17,066 $ 265,242
Gain (loss) on investments:
Net realized gain (loss) (13,472) - (2,393) (12,886) (1,299) 31,416
Net change in unrealized
appreciation
(depreciation) 4,764 469 13,411 9,556 (29,267) (161,183)
Net gain (loss) (8,708) 469 11,018 (3,330) (30,566) (129,767)
Increase (decrease) in
net assets from operations$ (8,708) $ 14,140 $ 12,031 $ (3,330)$ (13,500) $ 135,475
</TABLE>
Fidelity
<TABLE>
<CAPTION>
Overseas Asset Manager Index 500 Equity-Income Contrafund Money Market
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividend income $ 9,881 $ 77,492 $ 40,230 $ 53,999 $ 213,019 $ 17,149
Net investment
income 9,881 77,492 40,230 53,999 213,019 17,149
Gain (loss) on investments:
Net realized gain (loss) 2,705 2,213 35,783 (6,946) 3,019 -
Net change in unrealized
appreciation
(depreciation) (16,829) (80,745) (58,174) (59,583) (236,214) 2,599
Net gain (loss) (14,124) (78,532) (22,391) (66,529) (233,195) 2,599
Increase (decrease) in
net assets from operations$ (4,243) $ (1,040) $ 17,839 $ (12,530)$ (20,176) $ 19,748
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
AUL American Individual Variable Life Unit Trust
STATEMENTS OF OPERATIONS(continued)
For six months ended June 30, 2000
(unaudited)
<TABLE>
<CAPTION>
American Century Alger
VP Capital VP VP Income American American
Appreciation International and Growth Growth Small Cap
<S> <C> <C> <C> <C> <C>
Investment income:
Dividend income $ 523 $ 6,166 $ 208 $ 586,347 $ -
Net investment
income 523 6,166 208 586,347 -
Gain (loss) on investments:
Net realized gain (loss) 1,477 19,720 220 8,060 -
Net change in unrealized
appreciation
(depreciation) 838 (51,531) (906) (483,854) 19
Net gain (loss) 2,315 (31,811) (686) (475,795) 19
Increase (decrease) in
net assets from operations$ 2,838 $ (25,645) $ (478) $ 110,553 $ 19
</TABLE>
<TABLE>
<CAPTION>
T. Rowe Price Janus
Limited Term Mid-Cap Worldwide Flexible
Equity Income Bond Growth Growth Income
<S> <C> <C> <C> <C> <C>
Investment income:
Dividend income $ 20,552 $ - $ - $ 19,157 $ 1,781
Net investment
income 20,552 - - 19,157 1,781
Gain (loss) on investments:
Net realized gain (loss) (7,421) - - 10,681 (42)
Net change in unrealized
appreciation
(depreciation) (30,537) - 5 (48,536) (1,516)
Net gain (loss) (37,958) - 5 (37,855) (1,558)
Increase (decrease) in
net assets from operations$ (17,406) $ - $ 5 $ (18,698)$ 223
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
AUL American Individual Variable Life Unit Trust
STATEMENTS OF OPERATIONS(continued)
For six months ended June 30, 2000 (unaudited)
<TABLE>
<CAPTION>
SAFECO PBHG
Tech. &
Equity Growth Growth II Comm.
<S> <C> <C> <C> <C>
Investment income:
Dividend income $ - - $ - $ -
Net investment
income - - - -
Gain (loss) on investments:
Net realized gain (loss) (1,066) 3,967 3 39
Net change in unrealized
appreciation
(depreciation) 1,586 (2,517) 6,064 42,100
Net gain (loss) 520 1,450 6,067 42,139
Increase (decrease) in
net assets from operations$ 520 $ 1,450 $ 6,067 $ 42,139
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
AUL American Individual Variable Life Unit Trust
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
AUL American Series Fund
Equity Money Market Bond
<S> <C> <C> <C> <C> <C> <C>
Six months Year Six months Year Six months Year
ended 6/30/00 ended ended 6/30/00 ended ended 6/30/00 ended
(unaudited) 12/31/99 (unaudited) 12/31/99 (unaudited) 12/31/99
Increase in net assets from operations:
Net investment income $ - $ 43,597 $ 13,671 $ 14,365 $ 1,013 $ 17,019
Net realized gain (loss) (13,472) 3,346 - - (2,393) (1,456)
Net change in unrealized
appreciation (depreciation) 4,764 (50,274) 469 - 13,411 (18,163)
Increase (decrease)
in net assets
from operations (8,708) (3,331) 14,140 14,365 12,031 (2,600)
Contract owner transactions:
Proceeds from units sold 76,216 207,393 547,714 1,237,777 160,196 426,622
Cost of units redeemed (37,256) (56,971) (430,767) (780,195) (43,726) (150,031)
Account charges (11,069) (23,586) (24,844) (36,264) (10,501) (18,020)
Increase (decrease) 27,891 126,836 92,103 421,318 105,969 258,571
Net increase (decrease) 19,183 123,505 106,243 435,683 118,000 255,971
Net assets, beginning 219,124 95,619 566,688 131,005 291,712 35,741
Net assets, ending $ 238,307 $ 219,124 $ 672,931 $ 566,688 $ 409,712 $ 291,712
Units sold 16,793 42,357 497,503 1,167,898 30,000 78,726
Units redeemed (10,858) (16,424) (416,052) (770,487) (10,251) (29,899)
Net increase (decrease) 5,935 25,933 81,451 397,411 19,749 48,827
Units outstanding, beginning 45,743 19,810 524,272 126,861 55,559 6,732
Units outstanding, ending 51,678 45,743 605,723 524,272 75,308 55,559
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
AUL American Individual Variable Life Unit Trust
STATEMENTS OF CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
AUL American Series Fund Fidelity
Managed High Income Growth
<S> <C> <C> <C> <C> <C> <C>
Six months Year Six months Year Six months Year
ended 6/30/00 ended ended 6/30/00 ended ended 6/30/00 ended
(unaudited) 12/31/99 (unaudited) 12/31/99 (unaudited) 12/31/99
Increase in net assets from operations:
Net investment income $ - $ 16,596 $ 17,066 $ 3,310 $ 265,242 $ 19,252
Net realized gain (loss) (12,886) 905 (1,299) 1,107 31,416 19,610
Net change in unrealized
appreciation (depreciation) 9,556 (19,154) (29,267) 298 (161,183) 364,946
Increase (decrease)
in net assets
from operations (3,330) (1,653) (13,500) 4,715 135,475 403,808
Contract owner transactions:
Proceeds from units sold 30,977 103,312 106,807 238,591 1,591,084 1,866,904
Cost of units redeemed (50,702) (5,521) (23,669) (2,650) (379,660) (118,567)
Account charges (5,043) (9,616) (11,016) (14,906) (175,538) (168,497)
Increase (decrease) (24,768) 88,175 72,122 221,035 1,035,886 1,579,840
Net increase (decrease) (28,098) 86,522 58,622 225,750 1,171,361 1,983,648
Net assets, beginning 115,714 29,192 252,252 26,502 2,112,819 129,171
Net assets, ending $ 87,616 $ 115,714 $ 310,874 $ 252,252 $ 3,284,180 $ 2,112,819
Units sold 6,251 20,322 22,497 49,349 187,741 272,854
Units redeemed (11,825) (2,966) (7,297) (3,693) (66,382) (40,681)
Net increase (decrease) (5,574) 17,356 15,200 45,656 121,359 232,173
Units outstanding, beginning 23,158 5,802 51,508 5,852 253,462 21,289
Units outstanding, ending 17,584 23,158 66,708 51,508 374,821 253,462
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
AUL American Individual Variable Life Unit Trust
STATEMENTS OF CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
Fidelity
<S> <C> <C> <C> <C> <C> <C>
Overseas Asset Manager Index 500
Six months Year Six months Year Six months Year
ended 6/30/00 ended ended 6/30/00 ended ended 6/30/00 ended
(unaudited) 12/31/99 (unaudited) 12/31/99 (unaudited) 12/31/99
Increase in net assets from operations:
Net investment income $ 9,881 $ 618 $ 77,492 $ 13,510 $ 40,230 $ 25,695
Net realized gain (loss) 2,705 1,077 2,213 8,615 35,783 317,655
Net change in unrealized
appreciation (depreciation) (16,829) 19,613 (80,745) 36,064 (58,174) 142,114
Increase (decrease)
in net assets
from operations (4,243) 21,308 (1,040) 58,189 17,839 485,464
Contract owner transactions:
Proceeds from units sold 219,532 75,130 447,311 798,416 2,104,221 2,399,327
Cost of units redeemed (21,092) (6,006) (132,200) (320,939) (540,201) (1,462,484)
Account charges (12,288) (9,654) (32,156) (46,446) (194,388) (268,720)
Increase (decrease) 186,152 59,470 282,955 431,031 1,369,632 668,123
Net increase (decrease) 181,909 80,778 281,915 489,220 1,387,471 1,153,587
Net assets, beginning 93,610 12,832 620,132 130,912 2,571,273 1,417,686
Net assets, ending $ 275,519 $ 93,610 $ 902,047 $ 620,132 $ 3,958,744 $ 2,571,273
Units sold 33,684 13,855 76,631 146,259 321,324 399,752
Units redeemed (5,014) (2,872) (28,039) (66,205) (111,739) (271,569)
Net increase (decrease) 28,670 10,983 48,592 80,054 209,585 128,183
Units outstanding, beginning 13,651 2,668 104,578 24,524 382,005 253,822
Units outstanding, ending 42,321 13,651 153,170 104,578 591,590 382,005
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
AUL American Individual Variable Life Unit Trust
STATEMENTS OF CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
Fidelity
Equity-Income Contrafund Money Market
<S> <C> <C> <C> <C> <C> <C>
Six months Year Six months Year Six months Year
ended 6/30/00 ended ended 6/30/00 ended ended 6/30/00 ended
(unaudited) 12/31/99 (unaudited) 12/31/99 (unaudited) 12/31/99
Increase in net assets from operations:
Net investment income $ 53,999 $ 9,291 $ 213,019 $ 8,511 $ 17,149 $ 8,685
Net realized gain (loss) (6,946) 20,131 3,019 37,542 - -
Net change in unrealized
appreciation (depreciation) (59,583) (18,678) (236,214) 188,337 2,599 -
Increase (decrease)
in net assets
from operations (12,530) 10,744 (20,176) 234,390 19,748 8,685
Contract owner transactions:
Proceeds from units sold 255,683 565,651 1,122,799 1,455,091 732,873 1,778,930
Cost of units redeemed (106,523) (18,849) (227,508) (168,982) (1,054,584) (1,135,715)
Account charges (33,260) (58,245) (115,830) (136,410) (31,810) (16,949)
Increase (decrease) 115,900 488,557 779,461 1,149,699 (353,521) 626,266
Net increase (decrease) 103,370 499,301 759,285 1,384,089 (333,773) 634,951
Net assets, beginning 657,072 157,771 1,550,256 166,167 660,028 25,077
Net assets, ending $ 760,442 $ 657,072 $ 2,309,541 $ 1,550,256 $ 326,255 $ 660,028
Units sold 50,771 105,987 159,580 237,511 661,860 1,648,891
Units redeemed (27,515) (14,367) (48,611) (48,739) (979,050) (1,063,389)
Net increase (decrease) 23,256 91,620 110,969 188,772 (317,190) 585,502
Units outstanding, beginning 123,025 31,405 217,776 29,004 609,705 24,203
Units outstanding, ending 146,281 123,025 328,745 217,776 292,515 609,705
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
AUL American Individual Variable Life Unit Trust
STATEMENTS OF CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
American Century
<S> <C> <C> <C> <C> <C> <C>
VP Capital Appreciation VP International VP Income and Growth
For the period
Six months Year Six months Year Six months from 5/01/99
ended 6/30/00 ended ended 6/30/00 ended ended 6/30/00 (commencement)
(unaudited) 12/31/99 (unaudited) 12/31/99 (unaudited) to 12/31/99
Increase in net assets from operations:
Net investment income $ 523 $ - $ 6,166 $ - $ 208 $ -
Net realized gain (loss) 1,477 5,304 19,720 18,073 220 4
Net change in unrealized
appreciation (depreciation) 838 5,014 (51,531) 105,372 (906) 1,687
Increase (decrease)
in net assets
from operations 2,838 10,318 (25,645) 123,445 (478) 1,691
Contract owner transactions:
Proceeds from units sold 4,561 42,340 378,914 254,605 156,423 19,880
Cost of units redeemed (3,841) (34,831) (98,642) (112,718) (8,198) (29)
Account charges (784) (5,390) (18,613) (28,459) (5,726) (1,539)
Increase (decrease) (64) 2,119 261,659 113,428 142,499 18,312
Net increase (decrease) 2,774 12,437 236,014 236,873 142,021 20,003
Net assets, beginning 16,925 4,488 321,165 84,292 20,003 -
Net assets, ending $ 19,699 $ 16,925 $ 557,179 $ 321,165 $ 162,024 $ 20,003
Units sold 555 9,154 48,150 48,485 29,534 3,938
Units redeemed (575) (7,879) (14,754) (26,000) (2,667) (307)
Net increase (decrease) (20) 1,275 33,396 22,485 26,867 3,631
Units outstanding, beginning 2,261 986 39,483 16,998 3,631 -
Units outstanding, ending 2,241 2,261 72,879 39,483 30,498 3,631
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
AUL American Individual Variable Life Unit Trust
STATEMENTS OF CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
Alger T. Rowe Price
American Limited-Term
American Growth Small Cap Equity Income Bond
<S> <C> <C> <C> <C> <C> <C>
For the period For the period
Six months Year from 5/01/00 Six months Year from 5/01/00
ended 6/30/00 ended (commencement)ended 6/30/00 ended (commencement)
(unaudited) 12/31/99 to 6/30/00 (unaudited) 12/31/99 to 6/30/00
Increase in net assets from operations:
Net investment income $ 586,347 $ 116,780 $ - $ 20,552 $ 35,658 $ -
Net realized gain (loss) 8,060 63,125 - (7,421) 16,123 -
Net change in unrealized
appreciation (depreciation) (483,854) 377,383 19 (30,537) (43,786) -
Increase (decrease)
in net assets
from operations 110,553 557,288 19 (17,406) 7,995 -
Contract owner transactions:
Proceeds from units sold 2,355,013 2,774,560 178 373,332 575,813 -
Cost of units redeemed (351,270) (227,874) - (158,774) (75,474) -
Account charges (230,395) (256,867) (34) (45,501) (71,247) -
Increase (decrease) 1,773,348 2,289,819 144 169,057 429,092 -
Net increase (decrease) 1,883,901 2,847,107 163 151,651 437,087 -
Net assets, beginning 3,119,899 272,792 - 668,840 231,753 -
Net assets, ending $ 5,003,800 $ 3,119,899 $ 163 $ 820,491 $ 668,840 -
Units sold 271,116 393,801 39 73,641 109,803 -
Units redeemed (67,640) (66,959) (8) (40,145) (27,698) -
Net increase (decrease) 203,476 326,842 31 33,496 82,105 -
Units outstanding, beginning 370,125 43,283 - 128,167 46,062 -
Units outstanding, ending 573,601 370,125 31 161,663 128,167 -
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
AUL American Individual Variable Life Unit Trust
STATEMENTS OF CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
T. Rowe Price Janus
<S> <C> <C> <C> <C> <C> <C>
Mid-Cap
Growth Worldwide Growth Flexible Income
For the period For the period For the period
from 5/01/00 Six months from 5/01/99 Six months from 5/01/99
(commencement)ended 6/30/00 (commencement)ended 6/30/00(commencement)
to 6/30/00 (unaudited) to 12/31/99 (unaudited) to 12/31/99
Increase in net assets from operations:
Net investment income $ - $ 19,157 $ 22 $ 1,781 $ 115
Net realized gain (loss) - 10,681 575 (42) (2)
Net change in unrealized
appreciation (depreciation) 5 (48,536) 72,199 (1,516) (71)
Increase (decrease)
in net assets
from operations 5 (18,698) 72,796 223 42
Contract owner transactions:
Proceeds from units sold 179 1,266,412 257,209 73,628 4,127
Cost of units redeemed - (106,910) (8,331) (462) (10)
Account charges (34) (68,091) (13,445) (3,409) (786)
Increase (decrease) 145 1,091,411 235,433 69,757 3,331
Net increase (decrease) 150 1,072,713 308,229 69,980 3,373
Net assets, beginning - 308,229 - 3,373 -
Net assets, ending $ 150 $ 1,380,942 $ 308,229 $ 73,353 $ 3,373
Units sold 37 160,536 44,298 14,574 835
Units redeemed (7) (22,428) (3,542) (771) (161)
Net increase (decrease) 30 138,108 40,756 13,803 674
Units outstanding, beginning - 40,756 - 674 -
Units outstanding, ending 30 178,864 40,756 14,477 674
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
AUL American Individual Variable Life Unit Trust
STATEMENTS OF CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
Safeco PBHG
<S> <C> <C> <C> <C> <C> <C>
Tech. &
Equity Growth Growth II Comm.
For the period For the periodFor the period For the period
Six months from 5/01/99 Six months from 5/01/99 from 5/01/00 from 5/01/00
ended 6/30/00 (commencement)ended 6/30/00(commencement)(commencement) (commencement)
(unaudited) to 12/31/99 (unaudited) to 12/31/99 to 6/30/00 to 6/30/00
Increase in net assets from operations:
Net investment income $ - $ 1,607 $ - $ - $ - $ -
Net realized gain (loss) (1,066) (38) 3,967 (35) 3 39
Net change in unrealized
appreciation (depreciation) 1,586 (1,354) (2,517) 4,699 6,064 42,100
Increase (decrease)
in net assets
from operations 520 215 1,450 4,664 6,067 42,139
Contract owner transactions:
Proceeds from units sold 152,516 33,302 341,068 38,317 22,371 155,648
Cost of units redeemed (15,422) (24) (26,819) (3,425) - (125)
Account charges (10,617) (3,211) (10,356) (3,077) (239) (1,395)
Increase 126,477 30,067 303,893 31,815 22,132 154,128
Net increase 126,997 30,282 305,343 36,479 28,199 196,267
Net assets, beginning 30,282 - 36,479 - - -
Net assets, ending $ 157,279 $ 30,282 $ 341,822 $ 36,479 $ 28,199 $ 196,267
Units sold 32,192 6,812 58,358 7,622 5,002 36,402
Units redeemed (5,474) (669) (6,128) (1,280) (49) (308)
Net increase 26,718 6,143 52,230 6,342 4,953 36,094
Units outstanding, beginning 6,143 - 6,342 - - -
Units outstanding, ending 32,861 6,143 58,572 6,342 4,953 36,094
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
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(R) (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), T. Rowe Price Equity
Series, Inc., T. Rowe Price Fixed Income Series, Inc. (T. Rowe Price), and
PBHG Insurance Series Fund, Inc. (PBHG).
Security Valuation Transactions and Related Income
The market value of investments is based on the closing bid prices at June
30, 2000. 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 during the six month period and for the year
ended December 31, 1999 were $1,052,937 and $1,191,334, 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
policy's 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 annualcontract charge of $30.00 each year in which an individual policy's
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.
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. Accumulation Unit Value
The change in the Accumulation Unit Value per unit for the six month period
ended June 30, 2000, or from commencement of operation, May 1, 2000 through
June 30, 2000.
<TABLE>
<CAPTION>
6/30/00 12/31/99 Change
<S> <C> <C> <C>
AUL American Series Fund:
Equity $ 4.611439 $ 4.790429 -3.7%
Money Market 1.111491 1.081055 2.8%
Bond 5.440591 5.250403 3.6%
Managed 4.982773 4.996810 -0.3%
Fidelity:
High Income 4.660636 4.897979 -4.8%
Growth 8.761716 8.335727 5.1%
Overseas 6.510181 6.857656 -5.1%
Asset Manager 5.889380 5.930109 -0.7%
Index 500 6.691535 6.730730 -0.6%
Equity Income 5.199108 5.341704 -2.7%
Contrafund 7.025069 7.118542 -1.3%
Money Market 1.122311 1.089793 3.0%
American Century:
VP Capital
Appreciation 8.789760 7.487388 17.4%
VP International 7.645491 8.134571 -6.0%
VP Income
and Growth 5.312633 5.509636 -3.6%
Alger:
American Growth 8.723289 8.429238 3.5%
T. Rowe Price:
Equity Income 5.075300 5.218486 -2.7%
Janus:
Worldwide Growth 7.720569 7.564515 2.1%
Flexible Income 5.066989 5.005508 1.2%
Safeco:
Equity 4.786114 4.929132 -2.9%
Growth 5.835894 5.751535 1.5%
6/30/00 5/01/00 Change
Alger:
American Small Cap $ 5.212841 $ 5.000000 4.3%
T. Rowe Price:
Limited-Term Bond 5.094408 5.000000 1.9%
Mid-Cap Growth 4.973090 5.000000 -0.5%
PBHG:
Growth II 5.693136 5.000000 13.9%
Technology & 5.437647 5.000000 8.8%
Communications
</TABLE>
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
4. Cost of Investments
The cost of investments at June 30, 2000 is:
<TABLE>
<CAPTION>
<S> <C>
AUL American Series Fund:
Equity $ 282,906
Money Market 672,463
Bond 415,114
Managed 96,606
Fidelity:
High Income 337,888
Growth 3,063,196
Overseas 272,030
Asset Manager 937,054
Index 500 3,740,980
Equity Income 823,074
Contrafund 2,334,698
Money Market 323,656
American Century:
VP Capital Appreciation 13,253
VP International 497,176
VP Income and Growth 161,243
Alger:
American Growth $ 5,067,038
American Small Cap 144
T. Rowe Price:
Equity Income 887,781
Limited-Term Bond -
Mid-Cap Growth 145
Janus:
Worldwide Growth 1,357,279
Flexible Income 74,940
SAFECO:
Equity 157,048
Growth 339,640
PBHG:
Growth II 22,135
Technology &
Communications 154,167
</TABLE>
5. Net Assets
Net Assets at June 30, 2000 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 $ 399,622 $ 2,021,203 $ 727,586 $ 165,128 $ 372,663 $ 3,576,850
Cost of units redeemed (120,588) (1,310,727) (298,177) (58,771) (26,576) (498,333)
Account charges (38,044) (67,127) (29,896) (16,333) (28,088) (351,158)
Net investment income 52,272 29,113 19,060 18,488 20,376 284,493
Net realized gain (loss) (10,356) 469 (3,459) (11,906) (487) 51,344
Unrealized appreciation
(depreciation) (44,599) - (5,402) (8,990) (27,014)
220,984
$ 238,307 $ 672,931 $ 409,712 $ 87,616 $ 310,874 $ 3,284,180
Fidelity
Overseas Asset Manager Index 500 Equity-income Contrafund Money Market
Proceeds from units sold $ 308,195 $ 1,376,035 $ 5,818,043 $ 974,038 $ 2,753,497 $ 2,552,782
Cost of units redeemed (27,159) (455,357) (2,004,656) (127,654) (417,280) (2,205,042)
Account charges (23,383) (85,345) (497,091) (100,167) (263,811) (50,027)
Net investment income 10,498 91,002 65,925 63,290 221,530 25,943
Net realized gain (loss) 3,879 10,719 358,759 13,567 40,762 -
Unrealized appreciation
(depreciation) 3,489 (35,007) 217,764 (62,632) (25,157) 2,599
$ 275,519 $ 902,047 $ 3,958,744 $ 760,442 $ 2,309,541 $ 326,255
</TABLE>
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
5. Net Assets (continued)
Net Assets at June 30, 2000 are:
<TABLE>
<CAPTION>
American Century Alger
<S> <C> <C> <C> <C> <C> <C>
VP Capital VP VP Income American American
Appreciation International and Growth Growth Small Cap
Proceeds from units sold $ 52,610 $ 745,422 $ 176,304 $ 5,377,964 $ 178
Cost of units redeemed (38,671) (237,136) (8,228) (581,272) -
Account charges (7,973) (52,747) (7,265) (504,567) (34)
Net investment income 523 6,166 208 703,127 -
Net realized gain (loss) 6,764 35,471 224 71,786 -
Unrealized appreciation
(depreciation) 6,446 60,003 781 (63,238) 19
$ 19,699 $ 557,179 $ 162,024 $ 5,003,800 $ 163
T. Rowe Price Janus
Limited-Term Mid-Cap Worldwide
Equity Income Bond Growth Growth Flexible Income
Proceeds from units sold $ 1,194,626 $ - $ 179 $ 1,523,621 $ 77,755
Cost of units redeemed (251,812) - - (115,241) (472)
Account charges (127,763) - (34) (81,536) (4,195)
Net investment income 63,969 - - 19,180 1,896
Net realized gain (loss) 8,761 - - 11,255 (44)
Unrealized appreciation
(depreciation) (67,290) - 5 23,663 (1,587)
$ 820,491 $ - $ 150 $ 1,380,942 $ 73,353
SAFECO PBHG
Tech. &
Equity Growth Growth II Comm.
Proceeds from units sold $ 185,819 $ 379,386 $ 22,371 $ 155,648
Cost of units redeemed (15,447) (30,245) - (125)
Account charges (13,828) (13,433) (239) (1,395)
Net investment income 1,607 - - -
Net realized gain (loss) (1,103) 3,932 3 39
Unrealized appreciation
(depreciation) 231 2,182 6,064 42,100
$ 157,279 $ 341,822 $ 28,199 $ 196,267
</TABLE>
20
<PAGE>
AUL
American United Life Insurance Company
One American Square
P.O. Box 3687
Indianapolis, Indiana 46206-0368
www.aul.com
7-14587B (6/00)
