Semi-Annual Report
AUL American Individual Variable Annuity 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 distrbuted 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 further information
concerning the sales charge, expenses and other pertinent information.
Anerican 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 Annuity 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 confidence and support.
/s/ R. Stephen Radcliffe
R. Stephen Radcliffe
Chairman of the Board of Directors and President
Indianapolis,Indiana
July 31, 2000
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<TABLE>
<CAPTION>
AUL American Individual Variable Annuity Unit Trust
STATEMENTS OF NET ASSETS
June 30, 2000(unaudited)
AUL American Series Fund Fidelity
Equity Money Market Bond Managed High Income Growth
S> <C> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 234,574 $ 1,532,634 $ 569,614 $ 441,228 $ 959,842 $ 7,921,617
Net assets $ 234,574 $ 1,532,634 $ 569,614 $ 441,228 $ 959,842 $ 7,921,617
Units outstanding 53,418 1,445,255 111,011 93,617 205,847 1,193,769
Accumulation unit value $ 4.39 $ 1.06 $ 5.13 $ 4.71 $ 4.66 $ 6.63
Fidelity
Overseas Asset Manager Index 500 Equity-Income Contrafund
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 601,068 $ 4,275,954 $ 8,894,142 $ 1,314,622 $ 4,713,853
Net assets $ 601,068 $ 4,275,954 $ 8,894,142 $ 1,314,622 $ 4,713,853
Units outstanding 95,295 799,728 1,615,246 282,323 828,156
Accumulation unit value $ 6.31 $ 5.35 $ 5.51 $ 4.66 $ 5.69
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Annuity Unit Trust
STATEMENTS OF NET ASSETS (continued)
June 30, 2000(unaudited)
American Century Alger Calvert
VP VP Income American American Social Mid-Cap
International and Growth Growth Small Cap Growth
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 685,889 $ 757,270 $ 11,259,770 $ 35,912 $ 173,045
Net assets $ 685,889 $ 757,270 $ 11,259,770 $ 35,912 $ 173,045
Units outstanding 94,107 140,583 1,804,245 6,889 29,583
Accumulation unit value $ 7.29 $ 5.39 $ 6.24 $ 5.21 $ 5.85
PBHG T. Rowe Price
Tech. & Limited-Term Mid-Cap
Growth II Comm. Equity Income Bond Growth
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 1,962,725 $ 9,808,809 $ 2,718,852 $ 9,243 $ 1,046
Net assets $ 1,962,725 $ 9,808,809 $ 2,718,852 $ 9,243 $ 1,046
Units outstanding 189,746 676,039 594,119 1,814 210
Accumulation unit value $ 10.34 $ 14.51 $ 4.58 $ 5.09 $ 4.97
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Annuity Unit Trust
STATEMENTS OF NET ASSETS (continued)
June 30, 2000(unaudited)
Janus SAFECO
Worldwide Flexible
Growth Income Equity Growth
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 6,151,671 $ 637,859 $ 1,195,326 $ 687,443
Net assets $ 6,151,671 $ 637,859 $ 1,195,326 $ 687,443
Units outstanding 795,276 125,885 245,349 117,133
Accumulation unit value $ 7.74 $ 5.07 $ 4.86 $ 5.87
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Annuity Unit Trust
STATEMENTS OF OPERATIONS
for six months ended June 30, 2000
(unaudited)
AUL American Series Fund Fidelity
Equity Money Market Bond Managed High Income Growth
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividend income $ - $ 47,004 $ 1,244 - $ 32,348 $ 439,736
Net investment
income - 47,004 1,244 - 32,348 439,736
Gain (loss) on investments:
Net realized gain (loss) (2,311) - (3,259) (7,506) (1,301) 66,275
Net change in unrealized
appreciation
(depreciation) (1,074) 647 20,077 9,280 (59,571) (173,327)
Net gain (loss) (3,385) 647 16,818 1,774 (60,872) (107,052)
Increase (decrease) in
net assets from operations $ ($3,385) $ 47,651 $ 18,062 $ 1,774 $ (28,524) $ 332,684
Fidelity
Overseas Asset Manager Index 500 Equity-Income Contrafund
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividend income $ 31,369 $ 254,995 $ 73,974 $ 71,544 $ 334,450
Net investment
income 31,369 254,995 73,974 71,544 334,450
Gain (loss) on investments:
Net realized gain (loss) (2,816) (20,347) 58,492 (12,660) 2,162
Net change in unrealized
appreciation
(depreciation) (42,332) (232,044) (40,698) (67,051) (376,034)
Net gain (loss) (45,148) (252,391) 17,794 (79,711) (373,872)
Increase (decrease) in
net assets from operations $ ($13,779) $ 2,604 $ 91,768 $ (8,167) $ (39,422)
</TABLE>
The accompanying notes are an integral partof the financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Annuity Unit Trust
STATEMENTS OF OPERATIONS(continued)
for six months ended June 30, 2000(unaudited)
American Century Alger Calvert
VP VP Income American American Social Mid-Cap
International and Growth Growth Small Cap Growth
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividend income $ 5,926 $ 1,706 $ 1,279,976 $ 37 -
Net investment
income 5,926 1,706 1,279,976 37 -
Gain (loss) on investments:
Net realized gain (loss) (11,492) 1,544 117,764 - 217
Net change in unrealized
appreciation
(depreciation) 3,639 (10,126) (1,139,676) 1,456 13,337
Net gain (loss) (7,853) (8,582) (1,021,912) 1,456 13,554
Increase (decrease) in
net assets from operations $ (1,927) $ (6,876) $ 258,064 $ 1,493 $ 13,554
PBHG T. Rowe Price
Tech. & Limited-Term Mid-Cap
Growth II Comm. Equity Income Bond Growth
<S> <C> <C> <C> <C> <C> <C>
Investment income:
dividend income $ - $ - $ 57,857 $ - $ -
Net investment
income - - 57,857 - -
Gain (loss) on investments:
Net realized gain (loss) 59,614 1,326,799 (57,197) - -
Net change in unrealized
appreciation
(depreciation) 99,000 (770,502) (45,958) 127 9
Net gain (loss) 158,614 556,297 (103,155) 127 9
Increase (decrease) in
net assets from operations $ 158,614 $ 556,297 $ (45,298) $ 127 $ 9
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Annuity Unit Trust
STATEMENTS OF OPERATIONS (continued)
for six months ended June 30, 2000
(unaudited)
Janus SAFECO
Worldwide Flexible
Growth Income Equity Growth
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividend income $ 86,899 $ 16,990 - -
Net investment
income 86,899 16,990 - -
Gain (loss) on investments:
Net realized gain (loss) 149,164 (861) (36,228) 4,785
Net change in unrealized
appreciation
(depreciation) (302,539) (10,727) 13,020 (15,151)
Net gain (loss) (153,375) (11,588) (23,208) (10,366)
Increase (decrease) in
net assets from operations $ (66,476) $ 5,402 $ (23,208) $ (10,366)
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable annuity 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
Six months from 4/30/99 Six months from 4/30/99 Six months from 4/30/99
ended 6/30/00 (commencement) ended 6/30/00 (commencement) ended 6/30/00 (commencement)
(unaudited) to 12/31/99 (unaudited) to 12/31/99 (unaudited) to 12/31/99
<S> <C> <C> <C> <C> <C> <C>
Increase in net assets
from operations:
net investment income $ - $ 23,809 $ 47,004 $ 17,365$ 1,244 $ 15,330
Net realized gain (loss) (2,311) (1,129) - - (3,259) 643
Net change in unrealized
appreciation (depreciation) (1,074) (23,880) 647 - 20,077 (16,152)
Increase (decrease)
in net assets
from operations (3,385) (1,200) 47,651 17,365 18,062 (179)
Contract owner transactions:
Proceeds from units sold 130,943 138,557 8,050,122 3,462,742 368,009 358,280
Cost of units redeemed (11,011) (17,830) (8,621,938) (1,406,231) (93,302) (77,694)
Account charges (1,060) (440) (11,486) (5,591) (2,840) (722)
Increase (decrease) 118,872 120,287 (583,302) 2,050,920 271,867 279,864
Net increase (decrease) 115,487 119,087 (535,651) 2,068,285 289,929 279,685
Net assets, beginning 119,087 - 2,068,285 - 279,685 -
Net assets, ending $ 234,574 $ 119,087 $ 1,532,634$ 2,068,285$ 569,614 $ 279,685
Units sold 30,067 30,150 7,698,402 3,379,687 73,821 72,207
Units redeemed (2,755) (4,044) (8,257,387) (1,375,447) (19,290) 15,727)
Net increase (decrease) 27,312 26,106 (558,985) 2,004,240 54,531 56,480
Units outstanding, beginning 26,106 - 2,004,240 - 56,480 -
Units outstanding,ending 53,418 26,106 1,445,255 2,004,240 111,011 56,480
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Annuity 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
Six months from 4/30/99 Six months from 4/30/99 Six months from 4/30/99
ended 6/30/00 (commencement) ended 6/30/00 (commencement) ended 6/30/00 (commencement)
(unaudited) to 12/31/99 (unaudited) to 12/31/99 (unaudited) to 12/31/99
<S> <C> <C> <C> <C> <C> <C>
Increase in net assets
from operations:
net investment income $ - $ 32,960 $ 32,348 $ - $ 439,736 $ -
Net realized gain (loss) (7,506) (2,773) (1,301) (644) 66,275 26,954
Net change in unrealized
appreciation (depreciation) 9,280 (32,118) (59,571) 8,848 (173,327) 344,940
Increase (decrease)
in net assets
from operations 1,774 (1,931) (28,524) 8,204 332,684 371,894
Contract owner transactions:
Proceeds from units sold 271,758 327,276 700,632 428,105 6,490,328 3,428,715
Cost of units redeemed (59,078) (95,806) (99,453) (43,589) (1,918,117) (740,797)
Account charges (2,093) (672) (4,414) (1,119) (36,023) (7,067)
Increase (decrease) 210,587 230,798 596,765 383,397 4,536,188 2,680,851
Net increase (decrease) 212,361 228,867 568,241 391,601 4,868,872 3,052,745
Net assets, beginning 228,867 - 391,601 - 3,052,745 -
Net assets, ending $ 441,228 $ 228,867 $ 959,842 $ 391,601 $ 7,921,617 $ 3,052,745
Units sold 58,583 68,906 147,860 89,332 1,013,756 609,978
Units redeemed (13,389) (20,483) (21,926) (9,419) (303,734) (126,231)
Net increase (decrease) 45,194 48,423 125,934 79,913 710,022 483,747
Units outstanding, beginning 48,423 - 79,913 - 483,747 -
Units outstanding, ending 93,617 48,423 205,847 79,913 1,193,769 483,747
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Annuity Unit Trust
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Fidelity
Overseas Asset Manager Index 500
For the period For the period For the period
Six months from 4/30/99 Six months from 4/30/99 Six months from 4/30/99
ended 6/30/00 (commencement) ended 6/30/00 (commencement) ended 6/30/00 (commencement)
(unaudited) to 12/31/99 (unaudited) to 12/31/99 (unaudited) to 12/31/99
<S> <C> <C> <C> <C> <C> <C>
Increase in net assets
from operations:
net investment income $ 31,369 $ - $ 254,995 $ - $ 73,974 $ -
Net realized gain (loss) (2,816) 15,874 (20,347) 7,040 58,492 (447)
Net change in unrealized
appreciation (depreciation) (42,332) 15,283 (232,044) 63,762 (40,698) 227,830
Increase (decrease)
in net assets
from operations (13,779) 31,157 2,604 70,802 91,768 227,383
Contract owner transactions:
Proceeds from units sold 640,738 430,217 3,541,005 1,971,095 7,323,612 4,019,721
Cost of units redeemed (196,263) (288,008) (970,968) (315,030) (2,245,204) (473,610)
Account charges (2,575) (419) (20,299) (3,255) (41,968) (7,560)
Increase (decrease) 441,900 141,790 2,549,738 1,652,810 5,036,440 3,538,551
Net increase (decrease) 428,121 172,947 2,552,342 1,723,612 5,128,208 3,765,934
Net assets, beginning 172,947 - 1,723,612 - 3,765,934 -
Net assets, ending $ 601,068 $ 172,947 $ 4,275,954 $ 1,723,612 $ 8,894,142 $ 3,765,934
Units sold 100,705 75,427 666,645 381,330 1,355,324 771,273
Units redeemed (31,440) (49,397) (187,082) (61,165) (420,020) (91,331)
Net increase (decrease) 69,265 26,030 479,563 320,165 935,304 679,942
Units outstanding, beginning 26,030 - 320,165 - 679,942 -
Units outstanding, ending 95,295 26,030 799,728 320,165 1,615,246 679,942
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Annuity Unit Trust
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Fidelity American Century
Equity-Income Contrafund VP International
For the period For the period For the period
Six months from 4/30/99 Six months from 4/30/99 Six months from 4/30/99
ended 6/30/00 (commencement) ended 6/30/00 (commencement) ended 6/30/00 (commencement)
(unaudited) to 12/31/99 (unaudited) to 12/31/99 (unaudited) to 12/31/99
<S> <C> <C> <C> <C> <C> <C>
Increase in net assets
from operations:
net investment income $ 71,544 $ - $ 334,450 $ - $ 5,926 $ -
Net realized gain (loss) (12,660) (914) 2,162 16,928 (11,492) 41,844
Net change in unrealized
appreciation (depreciation) (67,051) 5,755 (376,034) 208,647 3,639 3,826
Increase (decrease)
in net assets
from operations (8,167) 4,841 (39,422) 225,575 (1,927) 45,670
Contract owner transactions:
Proceeds from units sold 839,738 806,109 3,687,399 2,275,731 2,094,358 588,572
Cost of units redeemed (219,557) (100,005) (940,822) (467,309) (1,521,446) (516,850)
Account charges (6,595) (1,742) (22,168) (5,131) (2,183) (305)
Increase (decrease) 613,586 704,362 2,724,409 1,803,291 570,729 71,417
Net increase (decrease) 605,419 709,203 2,684,987 2,028,866 568,802 117,087
Net assets, beginning 709,203 - 2,028,866 - 117,087 -
Net assets, ending $ 1,314,622 $ 709,203 $ 4,713,853$ 2,028,866 $ 685,889 $ 117,087
Units sold 183,258 169,651 645,949 438,226 271,221 94,767
Units redeemed (49,175) (21,411) (169,577) (86,442) (192,214) (79,667)
Net increase (decrease) 134,083 148,240 476,372 351,784 79,007 15,100
Units outstanding, beginning 148,240 - 351,784 - 15,100 -
Units outstanding, ending 282,323 148,240 828,156 351,784 94,107 15,100
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Annuity Unit Trust
STATEMENTS OF CHANGES IN NET ASSETS (continued)
American Century Alger
American
VP Income & Growth American Growth Small Cap
For the period For the period For the period
Six months from 4/30/99 Six months from 4/30/99 from 5/1/00
ended 6/30/00 (commencement) ended 6/30/00 (commencement) (commencement)
(unaudited) to 12/31/99 (unaudited) to 12/31/99 to 6/30/00
<S> <C> <C> <C> <C> <C> <C>
Increase in net assets
from operations:
net investment income $ 1,706 $ - $ 1,279,976 $ - $ 37
Net realized gain (loss) 1,544 779 117,764 29,899 -
Net change in unrealized
appreciation (depreciation) (10,126) 6,520 (1,139,676) 460,391 1,456
Increase (decrease)
in net assets
from operations (6,876) 7,299 258,064 490,290 1,493
Contract owner transactions:
Proceeds from units sold 721,666 135,916 9,075,197 5,180,465 36,630
Cost of units redeemed (86,102) (11,451) (2,439,813) (1,241,651) (2,185)
Account charges (2,896) (286) (52,539) (10,243) (26)
Increase (decrease) 632,668 124,179 6,582,845 3,928,571 34,419
Net increase (decrease) 625,792 131,478 6,840,909 4,418,861 35,912
Net assets, beginning 131,478 - 4,418,861 - -
Net assets, ending $ 757,270 $ 131,478 $ 11,259,770 $ 4,418,861 $ 35,912
Units sold 133,505 25,676 1,477,411 954,698 7,331
Units redeemed (16,419) (2,179) (406,120) (221,744) (442)
Net increase (decrease) 117,086 23,497 1,071,291 732,954 6,889
Units outstanding, beginning 23,497 - 732,954 - -
Units outstanding, ending 140,583 23,497 1,804,245 732,954 6,889 <
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Annuity Unit Trust
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Calvert PBHG
Mid-Cap Growth Growth II Technology & Communications
For the period For the period For the period
Six months from 4/30/99 Six months from 4/30/99 Six months from 4/30/99
ended 6/30/00 (commencement) ended 6/30/00 (commencement) ended 6/30/00 (commencement)
(unaudited) to 12/31/99 (unaudited) to 12/31/99 (unaudited) to 12/31/99
<S> <C> <C> <C> <C> <C> <C>
Increase in net assets
from operations:
net investment income $ - $ 3,785 $ - $ - $ - $ -
Net realized gain (loss) 217 1 59,614 960 1,326,799 128,532
Net change in unrealized
appreciation (depreciation) 13,337 661 99,000 51,705 (770,502) 1,325,481
Increase (decrease)
in net assets
from operations 13,554 4,447 158,614 52,665 556,297 1,454,013
Contract owner transactions:
Proceeds from units sold 133,347 44,789 2,190,704 313,141 10,429,379 3,105,350
Cost of units redeemed (22,413) (1) (695,790) (48,900) (5,103,105) (581,067)
Account charges (572) (106) (7,268) (441) (45,265) (6,793)
Increase (decrease) 110,362 44,682 1,487,646 263,800 5,281,009 2,517,490
Net increase(decrease) 123,916 49,129 1,646,260 316,465 5,837,306 3,971,503
Net assets, beginning 49,129 - 316,465 - 3,971,503 -
Net assets, ending $ 173,045 $ 49,129 $ 1,962,725 $ 316,465 $ 9,808,809 $ 3,971,503
Units sold 24,411 9,386 234,151 43,696 750,508 378,892
Units redeemed (4,192) (22) (81,145) (6,956) (394,562) (58,799)
Net increase (decrease) 20,219 9,364 153,006 36,740 355,946 320,093
Units outstanding, beginning 9,364 - 36,740 - 320,093 -
Units outstanding, ending 29,583 9,364 189,746 36,740 676,039 320,093
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Annuity Unit Trust
STATEMENTS OF CHANGES IN NET ASSETS (continued)
T. Rowe Price Janus
Limted-Term Mid-Cap
Equity-Income Bond Growth Worldside Growth
For the period For the period For the period For the period
Six months from 4/30/99 from 5/1/00 from 5/1/00 Six months from 4/30/99
ended 6/30/00 (commencement) (commencement) (commencement) ended 6/30/00 (commencement)
(unaudited) to 12/31/99 to 6/30/00 to 6/30/00 (unaudited) to 12/31/99
<S> <C> <C> <C> <C> <C> <C>
Increase in net assets
from operations:
net investment income $ 57,857 $ 63,443 $ - $ - $ 86,899 $ -
Net realized gain (loss) (57,197) (6,874) - 149,164 456
Net change in unrealized
appreciation (depreciation) (45,958) (71,712) 127 9 (302,539) 393,826
Increase (decrease)
in net assets
from operations (45,298) (15,143) 127 9 (66,476) 394,282
Contract owner transactions:
Proceeds from units sold 2,044,263 1,800,003 9,138 1,038 5,680,205 1,471,147
Cost of units redeemed (823,015) (223,821) - - (1,219,459) (78,122)
Account charges (13,628) (4,509) (22) (1) (25,918) (3,988)
Increase (decrease) 1,207,620 1,571,673 9,116 1,037 4,434,828 1,389,037
Net increase(decrease) 1,162,322 1,556,530 9,243 1,046 4,368,352 1,783,319
Net assets, beginning 1,556,530 - - - 1,783,319 -
Net assets, ending $ 2,718,852 $ 1,556,530 $ 9,243 $ 1,046 $ 6,151,671 $ 1,783,319
Units sold 450,537 378,964 1,818 210 724,274 247,219
Units redeemed (187,187) (48,195) (4) - (164,299) (11,918)
Net increase (decrease) 263,350 330,769 1,814 210 559,975 235,301
Units outstanding, beginning 330,769 - - - 235,301 -
Units outstanding, ending 594,119 330,769 1,814 210 795,276 235,301
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Variable Annuity
UNIT TRUSTSTATEMENTS OF CHANGES IN NET ASSETS (continued)
Janus SAFECO
Flexible Income Equity Growth
For the period For the period For the period
Six months from 4/30/99 Six months from 4/30/99 Six months from 4/30/99
ended 6/30/00 (commencement) ended 6/30/00 (commencement) ended 6/30/00 (commencement)
(unaudited) to 12/31/99 (unaudited) to 12/31/99 (unaudited) to 12/31/99
<S> <C> <C> <C> <C> <C> <C>
Increase in net assets
from operations:
net investment income $ 16,990 $ 9,396 $ - $ 36,991$ - $ -
Net realized gain (loss) (861) 654 (36,228) 635 4,785 493
Net change in unrealized
appreciation (depreciation) (10,727) (7,420) 13,020 (22,330) (15,151) 19,076
Increase (decrease)
in net assets
from operations 5,402 2,630 (23,208) 15,296 (10,366) 19,569
Contract owner transactions:
Proceeds from units sold 468,239 325,979 1,041,278 752,225 613,606 175,796
Cost of units redeemed (116,602) (44,197) (513,751) (68,517) (84,508) (23,833)
Account charges (3,005) (587) (5,849) (2,148) (2,443) (378)
Increase (decrease) 348,632 281,195 521,678 681,560 526,655 151,585
Net increase (decrease) 354,034 283,825 498,470 696,856 516,289 171,154
Net assets, beginning 283,825 - 696,856 - 171,154 -
Net assets, ending $ 637,859 $ 283,825 $ 1,195,326 $ 696,856 $ 687,443 $ 171,154
Units sold 93,037 65,692 216,339 153,339 102,615 34,306
Units redeemed (23,855) (8,989) (110,110) (14,219) (15,073) (4,715)
Net increase (decrease) 69,182 56,703 106,229 139,120 87,542 29,591
Units outstanding, beginning 56,703 - 139,120 - 29,591 -
Units outstanding, ending 125,885 56,703 245,349 139,120 117,133 29,591
</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 Annuity Unit Trust (Variable Account) was
established by American United Life Insurance Company(R)(AUL) on November 11,
1998, 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, 1999. The Variable Account is
a segregated investment account for individual variable annuity 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), Calvert Variable Series (Calvert), 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 individual annuity policies funded by the variable
account, total account charges during the period ended June 30, 2000 and year
ended December 31, 1999 were $313,136 and $63,502, respectively.Deductions are
described as follows:
No Surrender Charge Contract:
AUL assesses (1) premium tax charges ranging from 0% to 3.5% when assessed by a
state or municipality, (2) mortality and expense risk charges of 1.45% per year
for the first 10 policy years and 1.35% per year thereafter, (3) an annual
contract charge of $30.00 each year in which an account value does not exceed a
specific amount; (4) other charges for federal, state, or local income taxes
incurred by AUL that are attributable to the variable account. No charge is
currently being assessed. The cost of additional policy riders is assessed on a
monthly basis and will vary depending upon the riders chosen.
Surrender Charge Contract:
AUL assesses (1) premium tax charges ranging from 0% to 3.5% when assessed by a
state or municipality, (2) mortality and expense risk charges range from 1.00%
to 1.15% per year for the first 10 policy years and from .90% to 1.05% per year
thereafter, (3) an annual contract charge of $30.00 each year in which an
account value does not exceed a specific amount, (4) other charges for federal,
state, or local income taxes incurred by AUL that are attributable to the
variable account. No charge is currently being assessed. (5) withdrawal charges
on surrenders exceeding 12% of the account value range from 10% to 0%, depending
on policy duration, for flexible premium contracts, and 7% to 0%, depending on
policy duration, for one year flexible premium contracts. 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(continue)
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 operations,
May 1, 2000, through June 30, 2000, is:
6/30/00 12/31/99 Change
AUL American Series Fund:
Equity $ 4.391311 $ 4.561758 -3.7%
Money Market 1.061004 1.031951 2.8%
Bond 5.131292 4.951919 3.6%
Managed 4.713141 4.726423 -0.3%
Fidelity:
High Income 4.662892 4.900344 -4.8%
Growth 6.633400 6.310891 5.1%
Overseas 6.307406 6.644067 -5.1%
Asset Manager 5.346536 5.383504 -0.7%
Index 500 5.506362 5.538617 -0.6%
Equity Income 4.656445 4.784154 -2.7%
Contrafund 5.691965 5.767705 -1.3%
American Century:
VP International 7.288135 7.754350 -6.0%
VP Income and Growth 5.386854 5.586601 -3.6%
Alger:
American Growth 6.239299 6.028981 3.5%
Calvert:
Mid-Cap Growth 5.849543 5.246767 11.5%
PBHG:
Growth II 10.343803 8.613602 20.1%
Technology
& Communications 14.509185 12.408317 16.9%
T. Rowe Price:
Equity Income 4.576670 4.705788 -2.7%
Janus:
Worldwide Growth 7.735229 7.578881 2.1%
Flexible Income 5.066989 5.005508 1.2%
SAFECO:
Equity 4.863695 5.009025 -2.9%
Growth 5.868896 5.784060 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%
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
4. Cost of Investments
The cost of investments at June 30, 2000, is:
AUL American Series Fund:
Equity $ 259,528
Money Market 1,531,987
Bond 565,689
Managed 464,066
Fidelity:
High Income 1,010,565
Growth 7,750,002
Overseas 628,117
Asset Manager 4,444,236
Index 500 8,707,010
Equity Income 1,375,918
Contrafund 4,881,240
American Century:
VP International 678,424
VP Income and Growth 760,876
Alger:
American Growth 11,939,056
American Small Cap 34,456
Calvert:
Social
Mid-Cap Growth $ 159,048
PBHG:
Growth II 1,812,021
Technology &
Communications 9,253,829
T. Rowe Price:
Equity Income 2,836,521
Limited-Term Bond 9,116
Mid-Cap Growth 1,037
Janus:
Worldwide Growth 6,060,385
Flexible Income 656,006
SAFECO:
Equity 1,204,635
Growth 683,518
<TABLE>
<CAPTION>
5. Net Assets
Net Assets at June 30, 2000 are:
AUL American Series Fund Fidelity
Equity Money Market Bond Managed High Income Growth
<S> <C> <C> <C> <C> <C> <C>
Proceeds from units sold $ 269,500 $ 11,512,863 $ 726,290 $ 599,035 $1,128,738 $ 9,919,042
Cost of units redeemed (28,841) (10,028,168) (170,996) (154,884) (143,043) (2,658,914)
Account charges (1,500) (17,077) (3,562) (2,765) (5,533) (43,091)
Net investment income 23,809 64,369 16,574 32,960 32,348 439,736
Net realized gain (loss) (3,440) - (2,617) (10,280) (1,945) 93,229
Unrealized appreciation
(depreciation) (24,954) 647 3,925 (22,838) (50,723) 171,615
$ 234,574 $ 1,532,634 $ 569,614 $ 441,228 $ 959,842 $ 7,921,617
Fidelity
Overseas Asset Manager Index 500 Equity-income Contrafund
Proceeds from units sold $ 1,070,956 $ 5,512,100 $ 11,343,334 $ 1,645,847 $ 5,963,131
Cost of units redeemed (484,271) (1,285,997) (2,718,815) (319,562) (1,408,131)
Account charges (2,994) (23,554) (49,528) (8,337) (27,299)
Net investment income 31,369 254,995 73,974 71,544 334,450
Net realized gain (loss) 13,057 (13,308) 58,045 (13,574) 19,089
Unrealized appreciation
(depreciation) (27,049) (168,282) 187,132 (61,296) (167,387)
$ 601,068 $ 4,275,954 $ 8,894,142 $ 1,314,622 $ 4,713,853
</TABLE>
19
<PAGE>
<TABLE>
<CAPTION>
NOTES TO FINANCIAL STATEMENTS (continued)
5. Net Assets (continued)
Net Assets at June 30, 2000 are:
American Century Alger Calvert
VP VP Income American American Social Mid-Cap
International and Growth Growth Small Cap Growth
<S> <C> <C> <C> <C> <C> <C>
Proceeds from units sold $ 2,682,929 $ 857,583 $ 14,255,662 $ 36,630 $ 178,138
Cost of units redeemed (2,038,296) (97,553) (3,681,463) (2,185) (22,414)
Account charges (2,487) (3,183) (62,782) (26) (678)
Net investment income 5,926 1,706 1,279,976 37 3,785
Net realized gain (loss) 30,352 2,323 147,663 - 217
Unrealized appreciation
(depreciation) 7,465 (3,606) (679,286) 1,456 13,997
$ 685,889 $ 757,270 $ 11,259,770 $ 35,912 $ 173,045
PBHG T. Rowe Price
Tech & Limited-Term Mid-Cap
Growth II Comm. Equity Income Bond Growth
Proceeds from units sold $ 2,503,847 $ 13,534,727 $ 3,844,265 $ 9,138 $ 1,038
Cost of units redeemed (744,690) (5,684,171) (1,046,837) - -
Account charges (7,709) (52,058) (18,137) (22) (1)
Net investment income - - 121,301 - -
Net realized gain (loss) 60,573 1,455,331 (64,071) - -
Unrealized appreciation
(depreciation) 150,704 554,980 (117,669) 127 9
$ 1,962,725 $ 9,808,809 $ 2,718,852 $ 9,24 3 $ 1,046
Janus SAFECO
Worldwide Flexible
Growth Income Equity Growth
<S> <C> <C> <C> <C> <C> <C>
Proceeds from units sold $ 7,151,353 $ 794,218 $ 1,793,502 $ 789,402
Cost of units redeemed (1,297,581) (160,799) (582,268) (108,341)
Account charges (29,906) (3,591) (7,997) (2,821)
Net investment income 86,899 26,386 36,991 -
Net realized gain (loss) 149,620 (208) (35,593) 5,278
Unrealized appreciation
(depreciation) 91,286 (18,147) (9,309) 3,925
$ 6,151,671 $ 637,859 $ 1,195,326 $ 687,443
</TABLE>
20
<PAGE>
American United Life Insurance Company
One American Square
P.O. BOX 368
Indianapolis, Indiana 46206-0368
www.aul.com
7-15014 (6/00)
