SCHEDULE OF INVESTMENTSJune 30, 1995
(unaudited)
Market
DescriptionSharesValue
Common Stock (87.9%)
Banks & Financial (7.3%)
American Express Company5,500$193,875
Banc One Corporation9,200296,700
Ohio Casualty Corporation5,800182,700
Salomon, Inc.5,800232,725
906,000
Broadcasting & Publishing (11.4%)
CBS, Inc.2,640176,880
Chris-Craft Industries, Inc.*8,169285,915
Deluxe Corporation8,200271,625
Gibson Greetings, Inc.12,400165,850
Harland (John H.) Company7,700176,138
Meredith Corporation5,100129,412
Moore Corporation, Ltd.9,400207,975
1,413,795
Chemicals (1.8%)
Carlisle Companies, Inc.1,70065,025
Quaker Chemical Corporation9,900160,875
225,900
Electrical Equipment & Electronics (5.6%)
Baldor Electric Company8,320238,160
Dynatech Corporation*18,600348,750
General Electric Company1,900107,113
694,023
Entertainment & Leisure (4.9%)
CPI Corporation18,200348,075
Fleetwood Enterprises, Inc.9,000177,750
Huffy Corporation5,80075,400
601,225
Furniture & Apparel (8.0%)
Blair Corporation2,80096,250
Hillenbrand Industries, Inc.8,400261,450
Kellwood Company5,00085,000
La Z Boy Chair Company5,000131,875
Liz Claiborne, Inc.14,200301,750
Oshkosh B'Gosh, Inc. Class A7,200115,200
991,525
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
6
SCHEDULE OF INVESTMENTS (continued)
June 30, 1995
(unaudited)
Market
DescriptionSharesValue
Common Stock (87.9%), continued
Health Care (6.8%)
Acuson Corporation*9,900$120,037
Community Psychiatric Centers, Inc.12,900145,125
Lilly (Eli) and Company2,400188,400
Marion Merrell Dow, Inc.7,600193,800
Merck & Company4,000196,500
843,862
Information Processing & Telecommunications (12.3%)
Apple Computer, Inc.8,100376,144
Cray Research, Inc.*6,000146,250
Hunt Manufacturing Company5,30080,825
International Business Machines Corporation2,700259,200
Software Publishing Corporation*22,60079,100
Sun Microsystems, Inc.*7,700373,450
Telxon Corporation9,200200,100
1,515,069
Machinery (2.8%)
Lawson Products, Inc.8,000212,000
Precision Castparts Corporation3,900136,987
348,987
Merchandising (6.1%)
Hechinger Company Class A8,10058,219
Longs Drug Stores Corporation7,000262,500
Mac Frugal's Bargains Close-outs, Inc.13,800241,500
Mercantile Stores Company4,200195,300
757,519
Metals & Mining (3.0%)
Aluminum Company of America3,500175,437
Oregon Steel Mills, Inc.11,200191,800
367,237
Oil & Oil Services (3.1%)
Royal Dutch Petroleum Company1,400170,625
Valero Energy Corporation10,700216,675
387,300
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
7
SCHEDULE OF INVESTMENTS (continued)
June 30, 1995
(unaudited)
Market
DescriptionSharesValue
Common Stock (87.9%), continued
Paper & Containers (3.4%)
Sealright, Inc.14,000$234,500
Zero Corporation12,600189,000
423,500
Transportation (2.5%)
Alexander & Baldwin, Inc.7,600169,100
Norfolk Southern Corporation2,100141,488
310,588
Miscellaneous (8.9%)
Boeing Company3,700231,712
Cross (A.T.) Company Class A6,00089,250
Ford Motor Company4,100121,975
Groundwater Technology, Inc.*17,500212,188
Michael Foods, Inc.15,800173,800
Seagram Company, Ltd.2,20076,175
Stanhome, Inc6,000198,000
1,103,100
Total common stock (cost: $9,527,234)10,889,630
Money Market Mutual Funds (7.3%)
Dreyfus Cash Management449,088449,088
Merrill Lynch Institutional Fund449,120449,120
Total mutual funds (cost: $898,208)898,208
InterestMaturityPrincipal
RateDateAmount
Short-Term Notes (4.8%)
American General Finance Corporation5.960%8/15/95$300,000296,975
Ford Motor Credit Corporation6.000%7/05/95300,000297,050
Total short-term notes (cost: $594,025)594,025
Total Investments (cost: $11,019,467)$12,381,863
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
8
STATEMENT OF CHANGES IN NET ASSETS
for the six months ended June 30, 1995 and 1994
(unaudited)
19951994
Operations:
Net investment income$86,567$65,450
Net realized gain598,197936,976
Net unrealized gain (loss)646,700(1,256,803)
Increase (Decrease)1,331,464(254,377)
Contract Owner Transactions:
Proceeds from units sold192,286448,537
Payments for units withdrawn(793,430)(457,541)
Payments for units redeemed(3,089)(3,398)
Decrease(604,233)(12,402)
Net increase (decrease)727,231(266,779)
Net Assets, beginning11,706,27212,296,691
Net Assets, ending$12,433,503$12,029,912
Units sold22,46555,004
Units withdrawn(92,488)(55,312)
Units redeemed(362)(415)
Net decrease(70,385)(723)
Units outstanding, beginning1,416,7431,518,258
Units outstanding, ending1,346,3581,517,535
The accompanying notes are an integral part of the financial statements.
5
STATEMENT OF OPERATIONS
for the six months ended June 30, 1995
(unaudited)
Net Investment Income:
Income
dividends$117,905
interest39,296
157,201
Expense
investment management services17,659
mortality and expense risks charges52,975
70,634
Net investment income86,567
Gain on Investments:
Net realized gain598,197
Net unrealized gain646,700
Net gain1,244,897
Increase in Net Assets from Operations$1,331,464
The accompanying notes are an integral part of the financial statements.
4
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9
NOTES TO FINANCIAL STATEMENTS
1.Significant Accounting Policies
American United Life Pooled Equity Fund B (Fund B) is registered under
the
Investment
Company Act of 1940 as an open-end, diversified management investment
company. Fund B was
established and is managed by American United Life Insurance Company
(AUL)
for the purpose
of issuing group and individual variable annuities.
Investments are valued at closing prices for those securities traded on
organized
exchanges and at
bid prices for securities traded over-the-counter. Gains and losses on the
sale of
investments are
determined on a first-in, first-out (FIFO) basis.
Dividends are included in income as of the ex-dividend date. Interest
income is
accrued daily.
No provision for federal income taxes is considered necessary because
generally no
tax is
applicable to increases in net assets representing reserves for qualified
pension
plans. Operations
of Fund B form a part of and are taxed with those of AUL, which is taxed
as a life
insurance
company under the Internal Revenue Code.
2.Investments
Common
Stock
Net Realized Gain:
Proceeds from securities sold$1,803,859
Cost of securities sold1,205,662
$598,197
Net Unrealized Gain:
Market value at end of period$10,889,630
Less: securities purchased(1,108,788)
Add: securities sold at cost1,205,662
Less: market value at beginning of year(10,339,804)
$646,700
The unrealized gain of $1,362,396 consists of common stock appreciation
and
depreciation of
$2,280,104 and $917,708, respectively.
10
STATEMENT OF NET ASSETS
June 30, 1995
(unaudited)
Assets:
Investments at market value:
common stock$10,889,630
money market mutual funds898,208
short-term notes594,025
(cost: $11,019,467)12,381,863
Cash37,982
Receivable for investments sold3,243
Dividends and interest receivable21,085
Due from AUL1,445
Total assets12,445,618
Liabilities:
Due to AUL12,115
Net Assets$12,433,503
Units outstanding1,346,358
Net Asset Value per unit$9.23
The accompanying notes are an integral part of the financial statements.
3
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2
NOTES TO FINANCIAL STATEMENTS (continued)
3.Transactions With AUL
Fund B pays AUL an annual fee of 1.2% of its average daily net assets for
providing investment
management services and for mortality and expense risks charges. The
expense
incurred during
the six months ended June 30, 1995 and 1994, was $70,634 and $73,736,
respectively.
AUL withholds a portion of the proceeds obtained from contract owners to
pay
commissions and
certain expenses under a sales and administrative services agreement with
Fund B.
The amount
AUL retained during the six months ended June 30, 1995 and 1994, was
$8,712
and $19,992,
respectively.
4.Net Assets
Proceeds from units sold less payments$(3,259,424)
for units withdrawn and redeemed
Net investment income3,737,581
Net realized gains10,592,950
Unrealized gain1,362,396
$12,433,503
11
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12
A Message
From
The Chairman of the Board
of Managers
To All Participants In Fund B
After experiencing a dismal year in 1994, the stock market's major averages
skyrocketed during
the first half of 1995. Equity indices ascended into higher territory,
confirming that
the bull market
(which began in October 1990) remained in place. The idea of a "soft
landing"
became commonly
accepted with the markets able to shrug off one problem after another.
Continued
moderate
growth, low inflation, and positive liquidity provided a positive backdrop
for the
equity market.
Three common themes existed during the first part of 1995. In some
instances,
company-specific
events, such as merger activity, were responsible for outstanding price
performance. Investors
also bought specific technology issues which offered strong unit growth
prospects,
favorable
product cycles, and potential improvement from export sales. However, the
most
important driver
for the stock market was the strength of a few large capitalization growth
stocks.
Domestic
investors, fearing an economic slowdown, chased economically insensitive
consumer stocks for
their consistent earnings growth. Many of these companies also have
strong
foreign franchise
recognition and would benefit from a weak U.S. dollar.
As consumer stocks tend to dominate the capitalization weighted S&P 500,
their
phenomenal
returns masked the weakness in the rest of the marketplace. As a result, the
broader market
(dominated more by small and medium capitalization stocks) did not fare
nearly as
well as the
major equity indices.
The complete dominance of large capitalization growth stocks lessened
somewhat
as the second
quarter progressed. With growth stocks trading at a premium to the rest of
the
marketplace, some
investors began to rotate back into smaller capitalization and economically
sensitive issues.
Investment performance for Equity Fund B during the first half of 1995
was
12.3%.
Investors were anxiously awaiting the Federal Reserve Board's next move
as the
second quarter
ended. The Federal Reserve eased monetary policy in July by lowering
short-term
interest rates in
response to weak economic data. This represents the first rate cut in nearly
three
years, and the
markets assume more rate cuts are possible before the end of the year.
The performance number for Equity Fund B is net of investment advisory
fees but
does not reflect
mortality and expense risks charges.
James W. Murphy
Chairman of the Board of Managers
Indianapolis, Indiana
July 10, 1995
1
American United Life
Pooled Equity Fund B
BOARD OF MANAGERS
JAMES W. MURPHY, Chairman
Senior Vice President,
Corporate Finance, AUL
RONALD D. ANDERSON Professor,
School of Business,
Indiana University, Indianapolis, Indiana
JERRY D. SEMLER, Vice Chairman
Chairman, President, and
Chief Executive Officer, AUL
JAMES P. SHANAHAN
Senior Vice President,
Pension Division, AUL
H. RAYMOND SWENSONProfessor,
College of Business,
Butler University, Indianapolis, Indiana
RICHARD A. WACKER, Secretary
Senior Counsel, AUL
CUSTODIAN
National City BankIndianapolis, Indiana
LEGAL COUNSEL
Ice Miller Donadio
& RyanIndianapolis, Indiana
INVESTMENT MANAGER
American United Life
Insurance CompanyIndianapolis, Indiana
G. David Sapp,
Senior Vice President, Investments
This Report and the financial statements contained herein are submitted for
the
general
information of the participants in the Fund. The Report is not authorized
for
distribution to
prospective investors in the Fund unless preceded or accompanied by an
effective
Prospectus
which contains details concerning the sales charge and other pertinent
information.
American
United
Life
Pooled
Equity
Fund B
Semi-Annual Report
as of
June 30, 1995
American United Life Insurance Company
American Pooled Equity Fund B
American P.O. Box 1995
American Indianapolis, IN 46206-9101
VA-9731U
FIRST
CLASS
MAIL
