AUL American Series Fund, Inc.
Semi-Annual Report
June 30, 1998
asxc
This report and the financial statements contained herein are submitted 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 Unit
Trust, AUL American Individual Unit Trust or AUL American Variable Life Trust
which contains further information concerning the sales charge, expenses and
other pertinent information.
<PAGE>
A Message From The Chairman of the Board and President
I am pleased to announce the opening of three new investment options for AULs
pension retirement savings products. The AUL American Lifestyle Portfolios each
combine different amounts of equities, bonds and money market instruments to
create portfolios with three distinct levels of risk: conservative, moderate,
and aggressive. This is intended to allow diversification and to simplify the
decision making process.
In addition to announcing the new Lifestyle Portfolios, I would also like to
provide a brief recap of the economic environment and investment markets
during the last six months. The U.S. economy is exhibiting surprising strength
despite the opposing forces that exist. The Asian crisis worsened during the
first half of 1998 resulting in a decline in U.S. exports and an increase in
inexpensive imports. This created a great deal of pressure on U.S. corporate
earnings and resulted in an inventory build-up during the first quarter.
In contrast, we continue to experience the positive effects of low inflation and
low nominal interest rates. Another favorable development has been the amazing
strength in consumer spending right here at home. Consumers are benefiting from
inexpensive imports, low inflation, low mortgage rates and the wealth effect of
a rising stock market.
The stock market provided impressive returns during the first half of 1998,
with the average equity fund earning most of this return during the first
quarter. Second quarter returns were much more volatile as Asian concerns
resurfaced. Large capitalization companies continued to dominate the market as
investors searched for stability of earnings and liquidity.
Although bonds performed reasonably well in the first half of 1998, returns
still lagged the performance of the S&P 500, an unmanaged index of common
stocks, by a wide margin. Treasury yields declined during the first half of the
year with the biggest decrease occurring in the longer maturities. The thirty
year treasury bond yielded 5.63% at the end of June, thirty basis points below
the level at the beginning of the year.
Investment performance for the AUL American Series Fund, Inc. for the first half
of 1998 was:
Equity Portfolio 9.5% Managed Portfolio 7.4%
Money Market Portfolio 2.4% Tactical Asset Allocation Portfolio 8.8%
Bond Portfolio 4.0%
The performance numbers for the AUL American Series Fund, Inc. are net of
investment advisory fees and other expenses paid by each portfolio but do not
reflect specified contract charges and mortality and expense risk charges which
may be incurred when investing in a variable annuity contract, and which, if
included, would result in lower performance results. Past performance is, of
course, no guarantee of future results.
As we enter the second half of 1998,
commonly used valuation measures suggest that the stock market is expensive at
current levels. It is expected that market volatility will continue through the
remainder of 1998 as investors closely monitor economic and corporate earnings
growth as well as the level of interest rates. Bond performance will be
dependent on interest rate movements and the potential flight to quality in
the event investors become concerned about the stock market.
/s/James W. Murphy
James W. Murphy
Chairman of the Board of Directors and President
Indianapolis, Indiana
July 31, 1998
Directors and Officers of AUL American Series Fund, Inc.
James W. Murphy, Chairman of the Board and President
James P. Shanahan, Director
Dr. Ronald D. Anderson, Director
Professor, Kelley School of Business
Indiana University, Indianapolis, Indiana
Dr. Leslie Lenkowsky, Director
Indiana University, Center of Philanthropy
Indianapolis, Indiana
R. Stephen Radcliffe, Director, Vice President and Treasurer
Richard A. Wacker, Secretary
1
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2
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AUL American Series Fund, Inc.
Statements of Net Assets
June 30, 1998
(unaudited)
Portfolio
Equity Money Bond Managed Tactical
Market Asset
Assets:
Investments at value $94,672,738 $63,256,813 $40,490,133 $71,316,943 $ 5,987,430
(cost: $66,281,869,
$63,256,813, $40,088,002,
$57,934,112 and
$5,325,478, respectively)
Receivable for
shares sold, net 432,834 1,229,411 115,492 175,364 33,670
Receivable for
investments sold 2,048,000 744,000 307,563
Dividends and
interest receivable 109,925 134,338 429,666 365,224 43,894
Prepaid expense 878 527 213 577
Deferred investment
advisory fees 11,967
Deferred
organization costs 3,367
Total assets 97,264,375 64,621,089 41,035,504 72,602,108 6,387,891
Liabilities:
Payable for shares
redeemed, net 217,715 956,899 141,339 205,762 6,657
Payable for
investments purchased 839,729 1,000,000 1,389,641 1,151,253 207,875
Investment advisory
fees payable 52,599 27,736 17,645 31,854 4,303
Accrued expenses 49,800 36,001 18,790 37,156 2,735
Organization costs payable to AUL 4,830
Total liabilities 1,159,843 2,020,636 1,567,415 1,426,025 226,400
Net Assets $ 96,104,532$ 62,600,453$ 39,468,089$ 71,176,083 $ 6,161,491
Shares outstanding 4,187,869 62,600,453 3,603,112 4,353,625 458,029
Net Asset Value
per share $ 22.95 $ 1.00 $ 10.95 $ 16.35 $ 13.45
The accompanying notes are an integral part of the financial statements.
3
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AUL American Series Fund, Inc.
StatementS of Net Assets (continued)
June 30, 1998
(unaudited)
Portfolio
Aggressive Moderate Conservative
Investor Investor Investor
Assets:
Investments at value $ 5,068,640 $ 5,063,140 $ 5,083,128
(cost: $5,019,958,
$5,026,965, and
$5,050,578, respectively)
Receivable for
shares sold, net 425 290 113
Receivable for
investments sold 48,000 32,000 24,000
Dividends and
interest receivable 11,801 17,242 21,780
Prepaid expense
Deferred investment
advisory fees
Deferred
organization costs 5,592 5,592 5,592
Total assets 5,134,458 5,118,264 5,134,613
Liabilities:
Payable for shares
redeemed, net
Payable for
investments purchased 45,155 34,580 49,049
Investment advisory
fees payable 3,157 3,164 3,177
Accrued expenses 3,857 3,849 3,820
Organization costs
payable to AUL 5,683 5,683 5,683
Total liabilities 57,852 47,276 61,729
Net Assets $ 5,076,606 $ 5,070,988 $ 5,072,884
Shares outstanding 500,355 500,282 500,116
Net Asset Value
per share $ 10.15 $ 10.14 $ 10.14
The accompanying notes are an integral part of the financial statements.
4
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AUL American Series Fund, Inc.
Statements of Operations
For the six months ended June 30, 1998
(unaudited)
Portfolio
Equity Money Bond Managed Tactical
Market Asset
Investment Income:
Income:
Dividends $ 727,086 $ 324,636 $ 18,492
Interest 290,192 1,616,283 1,145,313 971,447 75,373
1,017,278 1,616,283 1,145,313 1,296,083 93,865
Expenses:
Investment advisory
fee 221,974 146,308 91,793 164,852 20,449
Custodian and
service agent fee 36,498 24,478 15,544 27,780 3,412
Professional fees 8,347 5,724 3,584 6,288 477
Amortization of deferred
organization costs 798
Director fees 2,946 2,025 1,267 2,221 169
Printing 7,470 5,087 3,184 5,616 430
Other 626 626 626 626 626
277,861 184,248 115,998 207,383 26,361
Net investment income 739,417 1,432,035 1,029,315 1,088,700 67,504
Gain (Loss) on Investments:
Net realized gain 4,716,649 630,907 2,761,898 47,963
Net change in
unrealized appreciation
(depreciation) 2,308,246 (214,587) 759,899 298,707
Net gain 7,024,895 416,320 3,521,797 346,670
Net Increase in Net Assets
from Operations $ 7,764,312 $ 1,432,035 $ 1,445,635 $ 4,610,497 $ 414,174
The accompanying notes are an integral part of the financial statement.
5
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AUL American Series Fund, Inc.
Statements of Operations (continued)
March 31, 1998 (Commencement of Operations) to June 30, 1998
(unaudited)
Portfolio
Aggressive Moderate Conservative
Investor Investor Investor
Investment Income:
Income:
Dividends (net of
foreign taxes
withheld of $702, $609,
and $349, respectively) $ 13,890 $ 10,992 $ 7,026
Interest 17,732 31,945 45,068
31,622 42,937 52,094
Expenses:
Investment advisory
fee 9,785 9,795 9,809
Custodian and
service agent fee 8,913 8,912 8,912
Professional fees 368 368 368
Amortization of deferred
organization costs 92 92 92
Director fees 81 81 81
Printing 231 230 230
Other 160 160 160
19,630 19,638 19,652
Net investment income 11,992 23,299 32,442
Gain (Loss) on Investments
and Foreign Currency:
Net realized gain
on investments 12,430 8,743 6,749
Net realized loss on
foreign currency
transactions (58) (58) (29)
Net change in unrealized
appreciation (depreciation)
on investments 48,682 36,175 32,551
Translation of assets and
liabilities in foreign currencies
Net gain 61,054 44,860 39,271
Net Increase in Net Assets
from Operations $ 73,046 $ 68,159 $ 71,713
The accompanying notes are an integral part of the financial statement.
6
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AUL American Series Fund, Inc.
Statements of Changes in Net Assets
Portfolio
Equity Money Market
Six months Six months
ended Year ended ended Year ended
June 30, 1998 Dec. 31, 1997 June 30, 1998 Dec. 31, 1997
(unaudited) (unaudited)
Increase in Net Assets
from Operations:
Net investment income $ 739,417 $ 999,336 $ 1,432,035 $ 2,268,259
Net realized gain 4,716,649 1,058,100
Net change in unrealized
appreciation (depreciation) 2,308,246 14,404,527
Increase in Net Assets
from Operations 7,764,312 16,461,963 1,432,035 2,268,259
Dividends and Distributions:
From net investment income (299,936) (1,011,139) (1,432,035) (2,268,259)
From net realized gain (841,088)
Decrease (299,936) (1,852,227) (1,432,035) (2,268,259)
Shareholder Transactions:
Proceeds from shares sold 15,955,126 23,646,772 58,990,960 89,738,967
Reinvested distributions 276,621 1,693,617 1,432,035 2,268,259
Cost of shares redeemed (7,867,547) (10,326,275) (53,579,484 (76,477,759)
Increase 8,364,200 15,014,114 6,843,511 15,529,467
Net increase 15,828,576 29,623,850 6,843,511 15,529,467
Net Assets at beginning
of year 80,275,956 50,652,106 55,756,942 40,227,475
Net Assets at end
of period $ 96,104,532 $ 80,275,956 $ 62,600,453 $ 55,756,942
Shares sold 706,774 1,225,237 58,990,960 89,738,967
Reinvested distributions 12,008 83,382 1,432,035 2,268,259
Shares redeemed (347,319) (535,202) (53,579,484) (76,477,759)
Net Increase 371,463 773,417 6,843,511 15,529,467
Shares outstanding at
beginning of year 3,816,406 3,042,989 55,756,942 40,227,475
Shares outstanding at
end of period 4,187,869 3,816,406 62,600,453 55,756,942
The accompanying notes are an integral part of the financial statements.
7
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AUL American Series Fund, Inc.
Statements of Changes in Net Assets (continued)
Portfolio
Bond Managed
Six months Six months
ended Year ended ended Year ended
June 30, 1998 Dec. 31,1997 June 30, 1998 Dec. 31, 1997
(unaudited) (unaudited)
Increase in Net Assets
from Operations:
Net investment income $ 1,029,315 $ 1,708,663 $ 1,088,700 $ 1,687,068
Net realized gain 630,907 687,635 2,761,898 1,443,799
Net change in unrealized
appreciation (depreciation) (214,587) (27,147) 759,899 6,578,271
Increase in Net Assets
from Operations 1,445,635 2,369,151 4,610,497 9,709,138
Dividends and Distributions:
From net investment income (498,838) (1,707,647) (492,451) (1,691,973)
From net realized gain (633,130) (1,443,799)
Decrease (498,838) (2,340,777) (492,451) (3,135,772)
Shareholder Transactions:
Proceeds from shares sold 12,327,129 13,713,183 12,148,320 15,228,291
Reinvested distributions 498,838 2,340,777 492,451 3,135,773
Cost of shares redeemed (9,022,595) (9,552,294) (6,059,744) (7,552,037)
Increase 3,803,372 6,501,666 6,581,027 10,812,027
Net increase 4,750,169 6,530,040 10,699,073 17,385,393
Net Assets at beginning
of year 34,717,920 28,187,880 60,477,010 43,091,617
Net Assets at end
of period $ 39,468,089 $ 34,717,920 $ 71,176,083 $ 60,477,010
Shares sold 1,137,092 1,268,900 754,465 1,035,603
Reinvested distributions 46,499 219,241 30,338 208,366
Shares redeemed (832,523) (884,186) (376,401) (513,935)
Net Increase 351,068 603,955 408,402 730,034
Shares outstanding at
beginning of year 3,252,044 2,648,089 3,945,223 3,215,189
Shares outstanding at
end of period 3,603,112 3,252,044 4,353,625 3,945,223
The accompanying notes are an integral part of the financial statements.
8
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AUL American Series Fund, Inc.
Statements of Changes in Net Assets (continued)
Portfolio
Tactical Asset Aggressive Moderate
Investor Investor
March 31, 1998 March 31,1998
Six months (Commencement)(Commencement)
ended Year ended to to
June 30, 1998 Dec. 31,1997 June 30, 1998 June 30, 1998
(unaudited) (unaudited) (unaudited)
Increase in Net Assets
from Operations:
Net investment income $ 67,504 $ 76,273 $ 11,992 $ 23,299
Net realized gain 47,963 257,170 12,372 8,685
Net change in unrealized
appreciation (depreciation) 298,707 130,402 48,682 36,175
Increase in Net Assets
from Operations 414,174 463,845 73,046 68,159
Dividends and Distributions:
From net investment income (34,586) (76,151)
From net realized gain (257,170)
Decrease (34,586) (333,321)
Shareholder Transactions:
Proceeds from shares sold 1,613,399 2,246,655 5,003,560 5,002,829
Reinvested distributions 26,140 232,373
Cost of shares redeemed (309,871) (302,190)
Increase 1,329,668 2,176,838 5,003,560 5,002,829
Net increase 1,709,256 2,307,362 5,076,606 5,070,988
Net Assets at beginning
of year 4,452,235 2,144,873
Net Assets at end
of period $ 6,161,491 $ 4,452,235 $ 5,076,606 $ 5,070,988
Shares sold 121,751 178,777 500,355 500,282
Reinvested distributions 1,947 18,622
Shares redeemed (23,566) (23,548)
Net Increase 100,132 173,851 500,355 500,282
Shares outstanding at
beginning of year 357,897 184,046
Shares outstanding at
end of period 458,029 357,897 500,355 500,282
The accompanying notes are an integral part of the financial statements.
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AUL American Series Fund, Inc.
Statements of Changes in Net Assets (continued)
Portfolio
Conservative
Investor
March 31,1998
(Commencement)
to
June 30, 1998
(unaudited)
Increase in Net Assets
from Operations:
Net investment income $ 32,442
Net realized gain 6,720
Net change in unrealized
appreciation (depreciation) 32,551
Increase in Net Assets
from Operations 71,713
Dividends and Distributions:
From net investment income
From net realized gain
Decrease
Shareholder Transactions:
Proceeds from shares sold 5,001,171
Reinvested distributions
Cost of shares redeemed
Increase 5,001,171
Net increase 5,072,884
Net Assets at beginning
of year
Net Assets at end
of period $ 5,072,884
Shares sold 500,116
Reinvested distributions
Shares redeemed
Net Increase 500,116
Shares outstanding at
beginning of year
Shares outstanding at
end of period 500,116
The accompanying notes are an integral part of the financial statements.
10
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AUL American Series Fund, Inc.
Schedule of Investments
Equity Portfolio
June 30, 1998
(unaudited)
Market
Description Shares Value
Common Stock (88.7%)
Aerospace (1.2%)
Boeing Co. 15,300 $ 681,806
Precision Castparts Corp. 8,800 469,700
1,151,506
Automotive & Auto Parts (5.5%)
Bandag, Inc. 41,700 1,626,300
Ford Motor Co. 44,500 2,625,500
TBC Corp. 148,100 981,163
5,232,963
Banks & Financial (13.4%)
American Express Co. 22,200 2,530,800
Associates First Capital Corp. 12,962 996,454
Banc One Corp. 36,363 2,029,510
Ohio Casualty Corp. 39,400 1,743,450
Travelers Group, Inc. 53,500 3,243,438
Washington Mutual, Inc. 47,985 2,084,348
12,628,000
Broadcasting & Publishing (7.1%)
Chris-Craft Industries, Inc.* 26,750 1,462,891
Deluxe Corp. 40,600 1,453,988
Gibson Greetings, Inc. 39,500 987,500
Meredith Corp. 27,500 1,290,781
Moore Corp., Ltd. 117,300 1,554,224
6,749,384
Electrical Equipment
& Electronics (4.0%)
Baldor Electric Co. 88,680 2,167,117
Dynatech Corp.-When Issued* 32,100 100,152
General Electric Co. 16,700 1,519,700
3,786,969
Entertainment & Leisure (4.2%)
CPI Corp. 56,200 1,338,263
Fleetwood Enterprises, Inc. 65,600 2,624,000
3,962,263
Furniture & Apparel (11.3%)
Hillenbrand Industries, Inc. 30,700 1,842,000
Kellwood Co. 42,100 1,505,075
La Z Boy Chair Co. 58,600 3,310,900
Liz Claiborne, Inc. 41,500 2,168,375
Reebok International 68,100 1,885,518
10,711,868
Health Care (6.3%)
Acuson Corp.* 49,700 903,919
Lilly (Eli) and Co. 13,540 894,486
Merck & Co. 11,700 1,564,875
McKesson Corp. 32,000 2,600,000
5,963,280
Information Processing &
Telecommunications (9.1%)
A T & T Corp. 26,900 1,536,663
International Business
Machines Corp. 16,200 1,859,963
Novell, Inc.* 71,800 915,450
Stratus Computer Inc. 700 17,763
Sun Microsystems, Inc.* 54,800 2,380,374
Telxon Corp. 58,100 1,880,988
8,591,201
Merchandising (4.0%)
Enesco Group Inc. 17,100 525,825
Gymboree Corp. 64,300 974,547
Longs Drug Stores Corp. 78,000 2,252,250
3,752,622
Metals & Mining (8.6%)
AK Steel Holding Corp. 88,800 1,587,300
Aluminum Company
of America 32,200 2,123,187
Cleveland-Cliffs, Inc. 38,900 2,086,013
Oregon Steel Mills, Inc. 69,200 1,288,850
Phelps Dodge Corp. 18,900 1,080,844
8,166,194
Oil & Oil Services (4.2%)
Royal Dutch Petroleum 36,100 1,978,731
Valero Energy Corp. 60,500 2,011,625
3,990,356
Transportation (3.5%)
Alexander & Baldwin, Inc. 68,000 1,980,500
Norfolk Southern Corp. 43,800 1,305,788
3,286,288
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
11
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AUL American Series Fund, Inc.
Schedule of Investments
Equity Portfolio (continued)
June 30, 1998
(unaudited)
Market
Description Shares Value
Common Stock (88.7%), continued
Miscellaneous (6.3%)
Carlisle Companies, Inc. 30,000 $ 1,291,875
Kelly Services, Inc. 59,400 2,101,274
Michael Foods, Inc. 39,400 1,157,375
P G & E Corp. 38,894 1,227,592
Park Electrochemical Corp. 7,000 147,875
5,925,991
Total common stock (cost: $55,508,023) 83,898,885
Money Market Mutual Funds (3.0%)
Federated Investors Prime Obligation 2,856,287 2,856,287
Total money market mutual funds (cost: $2,856,287) 2,856,287
Interest Maturity Principal
Rate Date Amount
Short-term Notes (4.7%)
Associates Corp. 5.53% 08/25/98 $ 2,000,000 $ 1,983,180
Associates Corp. 5.48% 07/07/98 1,500,000 1,498,590
John Deere Capital Corp. 5.47% 07/06/98 1,000,000 999,210
Total short-term notes (cost: $4,480,973) 4,480,980
Cash and Cash Equivalents (3.6%)
BONY Cash Reserve 3,436,586
Total cash and cash equivalent (cost: $3,436,586) 3,436,586
Total Investments (cost: $66,281,869) $ 94,672,738
The accompanying notes are an integral part of the financial statements.
12
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AUL American Series Fund, Inc.
Schedule of Investments
Money Market Portfolio
June 30, 1998
(unaudited)
Interest Maturity Principal Market
Description Rate Date Amount Value
Short-term Notes (87.9%)
U.S. Government & Agency Obligations (51.3%)
Federal Home Loan Bank
Discount Notes 5.350% 07/08/98 $ 5,600,000 $ 5,594,175
Federal Home Loan Bank
Discount Notes 5.350% 09/09/98 5,500,000 5,442,785
Federal Home Loan Mortgage
Corp. Discount Notes 5.360% 07/23/98 1,900,000 1,893,776
Federal Home Loan Mortgage
Corp. Discount Notes 5.438% 07/31/98 6,000,000 5,973,100
Federal Home Loan Mortgage
Corp. Discount Notes 5.380% 08/24/98 5,200,000 5,158,036
Federal National Mortgage
Association Discount Notes 5.430% 09/11/98 4,400,000 4,352,920
Federal National Mortgage
Association Discount Notes 5.370% 08/28/98 4,100,000 4,064,528
32,479,320
Corporate Obligations (36.6%)
Automotive (3.6%)
Ford Motor Credit Corp. 5.416% 07/06/98 2,300,000 2,300,000
2,300,000
Electrical Equipment (8.9%)
General Electric Capital Corp. 5.685% 08/03/98 2,900,000 2,900,000
General Electric Capital Corp. 5.569% 07/13/98 2,700,000 2,700,000
5,600,000
Financial (17.4%)
Prudential Financing Corp. 5.576% 07/13/98 3,000,000 3,000,000
Associates Corporation of
North America 5.579% 08/10/98 2,500,000 2,500,000
American General Finance 5.542% 07/10/98 3,000,000 3,000,000
Norwest Financial Corp. 5.536% 07/30/98 2,500,000 2,500,000
11,000,000
Machinery (5.1%)
John Deere Capital Corp. 5.564% 08/10/98 1,000,000 1,000,000
John Deere Capital Corp. 5.532% 07/06/98 2,200,000 2,200,000
3,200,000
Oil and Gas (1.6%)
Chevron Oil Finance Co. 5.541% 08/18/98 1,000,000 1,000,000
1,000,000
Total short-term notes (cost: $55,579,320) 55,579,320
The accompanying notes are an integral part of the financial statements.
13
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AUL American Series Fund, Inc.
Schedule of Investments
Money Market Portfolio (continued)
June 30, 1998
(unaudited)
Market
Description Shares Value
Money Market Mutual Funds (8.3%)
Dreyfus Masternote Account 2,292,040 $ 2,292,040
Federated Investors Prime Obligation 2,985,531 2,985,531
Total money market mutual funds (cost: $5,277,571) 5,277,571
Cash and Cash Equivalent (3.8%)
BONY Cash Reserve 2,399,922
Total cash and cash equivalents (cost: $2,399,922) 2,399,922
Total Investments (cost: $63,256,813) $ 63,256,813
The accompanying notes are an integral part of the financial statements.
14
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AUL American Series Fund, Inc.
Schedule of Investments
Bond Portfolio
June 30, 1998
(unaudited)
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-term Notes and Bonds (93.6%)
U.S. Government & Agency Obligations (34.5%)
Federal Home Loan Bank Notes 8.375% 10/25/99 $ 1,300,000 $ 1,344,083
Federal National Mortgage
Association Notes 6.640% 07/12/99 1,450,000 1,464,123
U.S. Treasury Bonds 7.250% 05/15/16 2,050,000 2,401,698
U.S. Treasury Bonds 8.000% 11/15/21 925,000 1,192,381
U.S. Treasury Bonds 5.500% 02/15/08 400,000 399,748
U.S. Treasury Notes 5.625% 05/15/08 300,000 303,981
U.S. Treasury Bonds 6.125% 11/15/27 900,000 964,404
U.S. Treasury Notes 6.250% 04/30/01 2,800,000 2,852,052
U.S. Treasury Notes 6.750% 04/30/00 3,000,000 3,063,270
13,985,740
Mortgage Backed Securities (30.3%)
American Southwest
Financial Corp. CMO 8.900% 03/01/18 163,331 166,342
Federal Home Loan Mortgage
Corp. Pool #E69858 6.000% 04/01/13 686,027 679,462
Federal Home Loan Mortgage
Corp. Pool #E69878 6.000% 04/01/13 53,962 53,445
Federal Home Loan Mortgage
Corp. 6.0% T.B.A. 6.000% 12/01/13 1,000,000 990,310
Federal National Mortgage
Association CMO 7.500% 12/25/09 600,000 635,622
GNMA Pool #436282 6.500% 03/15/28 333,197 332,561
GNMA Pool #463145 6.500% 04/15/28 1,009,141 1,007,213
GNMA Pool #468723 6.500% 02/15/28 366,053 365,354
GNMA 6.5% T.B.A. 6.500% 07/21/28 400,000 399,124
GNMA Pool #456941 6.500% 06/15/28 594,000 592,699
GNMA Pool #399083 7.000% 01/15/27 2,822,955 2,869,139
GNMA Pool #462142 7.000% 05/15/26 233,092 236,905
GNMA Pool #416402 7.500% 07/15/26 25,324 26,039
GNMA Pool #424739 7.500% 05/15/26 576,929 593,216
GNMA Pool #425039 7.500% 05/15/26 73,349 75,419
GNMA Pool #431976 7.500% 01/15/27 682,397 701,661
GNMA Pool #452827 7.500% 02/15/28 394,605 405,745
GNMA Pool #443216 8.000% 07/15/27 569,637 590,366
GNMA Pool #415539 8.000% 07/15/27 308,873 320,113
Green Tree Manufactured
Housing ABS 7.290% 03/15/28 1,200,000 1,241,244
12,281,979
15
<PAGE>
AUL American Series Fund, Inc.
Schedule of Investments
Bond Portfolio (continued)
June 30, 1998
(unaudited)
Interest Maturity Principal Market
Description Rate Date Amount Value
Corporate Obligations (28.8%)
Anheuser-Busch Cos. Inc.
Debentures 6.750% 12/15/27 $ 400,000 $ 414,968
Associates Corporation of
North America Notes 5.600% 01/15/01 1,600,000 1,584,896
California Infastructure
Southern Cal. Ed. 6.220% 03/25/04 400,000 403,875
Enron Corp. Notes 6.450% 11/15/01 400,000 402,916
Eli Lilly & Company
Debentures 7.125% 06/01/25 400,000 437,788
El Paso Natural Gas
Company Notes 7.750% 01/15/02 200,000 209,706
Ford Motor Credit Corp. Notes 7.750% 11/15/02 850,000 903,049
General Motors Acceptance
Corporation Notes 5.850% 04/06/00 500,000 499,385
GTE Corp. Debentures 6.940% 04/15/28 500,000 503,900
Hydro-Quebec Debentures 8.050% 07/07/24 400,000 475,888
ICI Wilmington Notes 6.750% 09/15/02 600,000 612,000
Key Bank NA Notes 6.500% 10/15/27 300,000 302,310
Korean Development Bank Notes 7.375% 09/17/04 500,000 412,660
Nationsbank Corp. Notes 5.750% 03/15/01 800,000 795,464
Petroliam Nasional Berhad Notes 7.125% 10/18/06 500,000 427,670
PNC Funding Corp. Notes 6.875% 03/01/03 400,000 409,276
Raytheon Co. Notes 5.950% 03/15/01 800,000 797,024
Sears Roebuck Acceptance
Corp. Notes 6.000% 03/20/03 400,000 396,180
Service Corp. Notes 6.750% 06/01/01 900,000 913,005
Signet Bank Notes 7.800% 09/15/06 400,000 438,840
Union Pacific Resources
Debentures 7.050% 05/15/18 300,000 301,950
11,642,750
Total long-term notes and bonds (cost: $37,508,338) 37,910,469
Shares
Money Market Mutual Funds (4.2%)
Federated Investors Prime Obligation 1,684,206 1,684,206
Total money market mutual funds (cost: $1,684,206) 1,684,206
Cash and Cash Equivalents (2.2%)
BONY Cash Reserve 895,458
Total cash and cash equivalent (cost: $895,458) 895,458
Total Investments (costs: $40,088,002) $ 40,490,133
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
AUL American Series Fund, Inc.
Schedule of Investments
Managed Portfolio
June 30, 1998
(unaudited)
Market
Description Shares Value
Common Stock (51.5%)
Aerospace (0.6%)
Boeing Co. 5,500 $ 245,093
Precision Castparts Corp. 3,700 197,488
442,581
Automotive & Auto Parts (3.3%)
Bandag, Inc. 17,900 698,100
Ford Motor Co. 20,300 1,197,700
TBC Corp. 64,800 429,300
2,325,100
Banks & Financial (7.7%)
American Express Co. 9,600 1,094,400
Associates First Capital Corp. 5,620 432,038
Banc One Corp. 15,885 886,582
Ohio Casualty Corp. 17,200 761,100
Travelers Group, Inc. 23,209 1,407,046
Washington Mutual, Inc. 21,105 916,747
5,497,913
Broadcasting & Publishing (4.2%)
Chris-Craft Industries, Inc.* 12,565 687,148
Deluxe Corp. 17,500 626,719
Gibson Greetings, Inc. 17,400 435,000
Meredith Corp. 11,800 553,863
Moore Corp., Ltd 49,900 661,175
2,963,905
Electrical Equipment &
Electronics (2.3%)
Baldor Electric Co. 39,100 955,506
Dynatech Corp.-When Issued* 14,500 45,240
General Electric Co. 7,300 664,300
1,665,046
Entertainment & Leisure (2.5%)
CPI Corp. 25,500 607,219
Fleetwood Enterprises, Inc. 28,400 1,136,000
1,743,219
Furniture & Apparel (6.5%)
Hillenbrand Industries, Inc. 13,400 804,000
Kellwood Co. 19,000 679,250
La Z Boy Chair Co. 25,400 1,435,100
Liz Claiborne, Inc. 17,800 930,050
Reebok International 29,400 814,013
4,662,413
Health Care (3.7%)
Acuson Corp.* 21,600 $ 392,850
Lilly (Eli) and Co. 5,904 390,033
Merck & Co. 5,200 695,500
McKesson Corp. 14,300 1,161,874
2,640,257
Information Processing &
Telecommunications (5.2%)
A T & T Corp. 11,700 668,363
International Business
Machines Corp. 7,000 803,688
Novell, Inc.* 30,200 385,050
Sun Microsystems, Inc.* 23,700 1,029,468
Telxon Corp. 25,200 815,850
3,702,419
Merchandising (2.7%)
Enesco Group Inc. 7,500 230,625
Gymboree Corp. 47,700 722,953
Longs Drug Stores Corp. 34,000 981,750
1,935,328
Metals & Mining (4.9%)
AK Steel Holding Corp. 35,300 630,987
Aluminum Company
of America 13,900 916,531
Cleveland-Cliffs, Inc. 16,800 900,900
Oregon Steel Mills, Inc. 30,000 558,750
Phelps Dodge Corp. 8,200 468,938
3,476,106
Oil & Oil Services (2.4%)
Royal Dutch Petroleum Co. 15,300 838,631
Valero Energy Corp. 26,000 864,500
1,703,131
Transportation (2.0%)
Alexander & Baldwin, Inc. 29,800 cc867,925
Norfolk Southern Corp. 19,100 569,419
1,437,344
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
AUL American Series Fund, Inc.
Schedule of Investments
Managed Portfolio (continued)
June 30, 1998
(unaudited)
Market
Description Shares Value
Common Stock (51.5%), continued
Miscellaneous (3.5%)
Carlisle Companies, Inc. 13,100 $ 564,119
Kelly Services 25,900 916,213
Michael Foods, Inc. 17,200 505,250
P G & E Corp. 16,854 531,954
2,517,536
Total common stock (cost: $23,633,208) 36,712,298
Money Market Mutual Funds (3.8%)
Federated Investors Prime Obligation 2,723,272 2,723,272
Total money market mutual funds (cost: $2,723,272 2,723,272
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
AUL American Series Fund, Inc.
Schedule of Investments
Managed Portfolio (continued)
June 30, 1998
(unaudited)
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-Term Notes and Bonds (41.9%)
U.S. Government and Agency Obligations (15.3%)
Federal Home Loan Bank Bonds 8.600% 06/25/99 $ 500,000 $ 513,905
Federal Home Loan Bank Bonds 8.375% 10/25/99 900,000 930,519
Federal National Mortgage
Association Bonds 8.350% 11/10/99 500,000 511,640
U.S. Treasury Bonds 7.250% 05/15/16 1,700,000 1,991,652
U.S. Treasury Bonds 8.000% 11/15/21 750,000 966,795
U.S. Treasury Notes 5.500% 02/15/08 75,000 74,953
U.S. Treasury Notes 5.625% 05/15/08 250,000 253,318
U.S. Treasury Bonds 6.125% 11/15/27 500,000 535,780
U.S. Treasury Notes 6.250% 04/30/01 2,200,000 2,240,897
U.S. Treasury Notes 6.750% 04/30/00 2,850,000 2,910,107
10,929,566
Mortgage Backed Securites (14.3%)
Federal Home Loan Mortgage
Corp. 6.0% T.B.A. 6.000% 12/01/13 500,000 495,155
Federal Home Loan Mortgage
Corp. Pool #E69502 6.000% 03/01/13 492,585 487,871
Federal National Mortgage
Association CMO 6.640% 07/12/99 850,000 858,279
GNMA 6.5% T.B.A. 6.500% 07/21/28 300,000 299,343
GNMA Pool #471262 6.500% 05/15/28 1,008,945 1,007,018
GNMA Pool #465963 6.500% 03/15/28 115,952 115,698
GNMA Pool #407966 6.500% 02/15/28 789,764 788,034
GNMA Pool #431962 6.500% 05/15/26 387,345 387,090
GNMA Pool #422407 6.500% 01/15/26 209,055 208,917
GNMA Pool #424578 6.500% 04/15/26 541,842 541,484
GNMA Pool #425983 6.500% 03/15/26 260,875 260,702
GNMA Pool #399069 7.000% 01/15/27 1,812,482 1,842,134
GNMA Pool #416741 7.000% 05/15/26 497,040 505,172
GNMA Pool #436741 7.500% 01/15/27 600,384 617,333
GNMA Pool #457562 7.500% 12/15/27 386,315 397,221
GNMA Pool #443216 8.000% 07/15/27 297,976 308,819
GNMA Pool #451312 8.000% 07/15/27 224,209 232,368
Green Tree Manufacturing
Housing ABS 7.290% 03/15/28 800,000 827,496
10,180,134
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
AUL American Series Fund, Inc.
Schedule of Investments
Managed Portfolio (continued)
June 30, 1998
(unaudited)
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-Term Notes (41.9%) (continued)
Corporate Obligations (12.3%)
Anheuser-Busch Cos.
Inc. Debentures 6.750% 12/15/27 $ 450,000 $ 466,839
Associates Corporation of
North America Notes 5.600% 01/15/01 400,000 396,224
California Infastructure
Southern Cal. Ed. 6.220% 03/25/04 300,000 302,906
El Paso Natural Gas
Company Notes 7.750% 01/15/02 100,000 104,853
General Motors Acceptance
Corporation Notes 5.850% 04/06/00 750,000 749,078
Enron Corp. Bites 6.450% 11/15/01 300,000 302,187
Eli Lilly & Company
Debentures 7.125% 06/01/25 300,000 328,341
Ford Motor Credit Corp. Notes 7.750% 11/15/02 600,000 637,446
GTE Corp. Debentures 6.940% 04/15/28 350,000 352,730
Hydro-Quebec Debenture 8.050% 07/07/24 250,000 297,430
ICI Wilmington Notes 6.750% 09/15/02 400,000 408,000
Key Bank NA Notes 6.500% 10/15/27 250,000 251,925
Korean Development Bank Notes 7.375% 09/17/04 400,000 330,128
Nationsbank Corp. Notes 5.750% 03/15/01 850,000 845,181
Petroliam Nasional Berhad Notes 7.125% 10/18/06 500,000 427,670
PNC Funding Corp. Notes 6.875% 03/01/03 300,000 306,957
Raytheon Co. Notes 5.950% 03/15/01 650,000 647,582
Sears Roebuck Acceptance
Corp. Notes 6.000% 03/20/03 300,000 297,135
Service Company
International Note 6.750% 06/01/01 700,000 710,114
Signet Bank Notes 7.800% 09/15/06 300,000 329,130
Union Pacific Resources
Debentures 7.050% 05/15/18 250,000 251,625
8,743,481
Total long-term notes and bonds (cost: $29,549,440) 29,853,181
Cash and Cash Equivalents (2.8%)
BONY Cash Reserve 2,028,192
Total cash and cash equivalent (cost: $2,028,192) 2,028,192
Total Investments (cost: $57,934,112) $ 71,316,943
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
AUL American Series Fund, Inc.
Schedule of Investments
Tactical Asset Portfolio
June 30, 1998
(unaudited)
Market
Description Shares Value
Common Stock (55.0%)
Automotive & Truck (3.1%)
Chrysler Corp. 2,000 $ 112,750
Ford Motor Co. 1,200 70,800
183,550
Banks & Financial (15.6%)
AFLAC, Inc. 3,000 90,938
AMBAC, Inc. 2,000 117,000
American National Insurance 800 84,200
Chase Manhattan Corp. 1,000 75,500
Countrywide Credit Ind. 1,000 50,750
Federal National Mortgage
Association 1,000 60,750
Frontier Insurance
Group Inc. 4,400 99,274
Green Tree Financial Corp. 3,500 149,844
Lehman Brothers Holding, Inc. 500 38,781
MGIC Investment Corp. 800 45,650
PMI Group, Inc. 1,000 73,375
Republic New York Co. 800 50,350
936,412
Energy (4.8%)
Diamond Offshore Drilling 2,500 100,000
R & B Falcon Co. 4,000 90,500
Tidewater Inc. 3,000 99,000
289,500
Information Processing &
Telecommunications (9.8%)
360 Communications Co. 4,000 128,000
Applied Materials, Inc. 3,000 88,500
Arrow Electronics, Inc. 1,000 21,750
Cox Communications, Inc. 1,500 72,656
ECI Telecommunications
Limited Designs 3,000 113,625
Intel Corp. 800 59,300
Seagate Technology, Inc. 2,000 47,625
Sprint Corp. 800 56,400
587,856
Manufactured Housing (1.8%)
Clayton Homes, Inc. 4,000 76,000
Oakwood Homes Corp. 1,000 30,000
106,000
Merchandising (2.9%)
Burlington Coat
Factory Warehouse 3,000 67,500
Fingerhut Companies, Inc. 1,500 49,500
Payless Shoesource, Inc. 764 56,297
173,297
Metals & Mining (1.9%)
Alumax, Inc. 305 14,144
Aluminum Company of America 400 26,375
Potash Corporation of Saskatch 1,000 75,563
116,082
Real Estate (2.9%)
Imperial Credit Commercial 5,000 65,313
Simon Debartolo Group Inc. 1,000 32,500
Storage USA 1,000 35,000
Trizec Hahn Corp. 2,000 42,875
175,688
Restaurants (1.9%)
Ryan Family Steak
Houses Inc. 5,000 51,250
Tricon Global Restaurants Inc. 2,000 63,374
114,624
Transportation (2.5%)
CSX Co. 1,000 45,500
Halter Marine Group Inc. 3,000 45,188
Norfolk Southern Co. 2,000 59,625
150,313
Utilities (1.1%)
Illinova Corp. 1,000 30,000
Nipsco Industries 1,400 39,200
69,200
Miscellaneous (6.7%)
Agco Co. 3,000 $ 61,687
Briggs & Stratton 1,000 37,438
Comair Holdings, Inc. 2,250 69,469
Dow Chemical Co. 400 38,675
Paccar Inc. 1,000 52,250
Philip Morris Co. 1,700 66,938
Trinity Industries 1,500 62,250
388,707
Total common stock
(cost: $2,659,482) 3,291,229
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
AUL American Series Fund, Inc.
Schedule of Investments
Tactical Asset Portfolio (continued)
June 30, 1998
(unaudited)
Market
Description Shares Value
Preferred Stock (0.9%)
News Corp LTD 2,000 $ 56,500
Total preferred stock (cost: $35,535) 56,500
Interest Maturity Principal
Rate Date Amount
Long-Term Notes (35.5%)
U.S. Government and Agency Obligations (26.3%)
Federal National Mortgage
Association Notes 5.250% 01/15/03 $ 200,000 196,312
Federal National Mortgage
Association Notes 5.625% 03/15/01 150,000 149,928
Federal National Mortgage
Association Notes 7.500% 02/02/07 250,000 256,140
Federal National Mortgage
Association Bonds 7.760% 08/02/06 100,000 101,953
US Treasury Notes 6.000% 10/15/99 100,000 100,562
US Treasury Notes 6.375% 01/15/00 100,000 101,219
US Treasury Notes 5.500% 04/15/00 100,000 99,969
US Treasury Notes 5.250% 07/31/98 100,000 100,000
US Treasury Notes 5.875% 02/15/04 150,000 152,766
US Treasury Notes 6.500% 05/15/05 100,000 105,547
US Treasury Bonds 6.125% 08/15/07 200,000 208,004
1,572,400
Corporate Obligations (9.2%)
E.I. Dupont De Nemours 6.500% 09/01/02 150,000 153,005
Countrywide Funding Corp. 6.500% 01/15/03 150,000 150,132
Merrill Lynch & Co. 6.020% 05/11/01 250,000 250,000
553,137
Total long-term notes and bonds (cost: $2,116,305) 2,125,537
Short-Term Notes (7.5%)
Dayton Power and Light 5.85% 07/15/98 100,000 99,781
KZH 5.70% 07/01/98 350,000 350,000
Total short-term notes and bonds (cost: $449,773) 449,781
Cash and Cash Equivalents (1.1%)
BONY Cash Reserve 64,383
Total cash and cash equivalents (cost: $64,383) 64,383
Total Investments (cost: $5,325,478) $ 5,987,430
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
AUL American Series Fund, Inc.
Schedule of Investments
Aggressive Investor Portfolio
June 30, 1998
(unaudited)
Market
Description Shares Value
Common Stock (78.9%)
Aerospace & Air Transport (1.4%)
Boeing Co. 500 $ 22,280
British Aerospace PLC 908 6,969
Northwest Airlines
Corp. Class A 200 7,713
Precision Castparts Corp. 300 16,013
United Technologies Corp. 200 18,500
71,475
Automotive & Auto Parts (2.8%)
Bandag, Inc. 900 35,100
Ford Motor Co. 1,000 59,000
Honda Motor Co. 91 6,501
Lear Corp. 200 10,263
TBC Corp. 2,900 19,212
Toyota Motor Corporation ADR 95 4,928
Volvo AB ADR 236 6,977
141,981
Banks & Financial (9.5%)
American Express Co. 700 79,800
Associates First Capital Corp. 288 22,140
AXA UAP ADR 143 8,124
Banc One Corp. 800 44,650
Banco Central
Hispanoamericano ADR 157 4,906
Banco Santander ADR 154 7,806
Bank of Ireland ADR 122 10,050
Bank of Tokyo-Mitsubshi 417 4,587
Barclays PLC ADR 61 7,015
Bayer Vereinsbank ADR 100 8,503
Federal National Mortgage
Association 200 12,150
Fifth Third Bancorp 300 18,900
ING Groep N.V. ADR 133 8,695
Istituto Mobiliare Itali ADR 146 6,962
National Westminster
Bank ADR 46 4,945
Ohio Casualty Corp. 900 39,825
Royal Bank of Canada 127 7,660
SLM Holdings Corp. 400 19,600
Societe Generale ADR 253 10,520
SunAmerica Inc. 400 22,975
Travelers Group, Inc. 1,200 72,750
Washington Mutual Inc. 1,200 52,125
474,688
Broadcasting & Publishing (4.6%)
Chris-Craft Industries, Inc.* 600 $ 32,813
Deluxe Corp. 1,000 35,812
Gannett Co. 800 56,850
Gibson Greetings, Inc. 1,100 27,500
Meredith Corp. 700 32,856
Moore Corp., Ltd. 2,800 37,100
WPP Group PLC ADR 174 11,702
234,633
Building & Forest Products (0.1%)
CRH PLC ADR 64 4,544
Cementos De Mexico ADR 7 52
CEMEX SA ADR 241 2,092
6,688
Business & Public Services (1.2%)
Interpublic Group of
Companies, Inc. 800 48,550
Paychex Inc. 300 12,206
60,756
Chemicals (1.3%)
Henkel KGAA ADR 158 13,112
Montedison SPA ADR 338 4,204
Praxair Inc. 600 28,088
Rhone-Poulenc ADR 198 11,125
Solutia Inc. 200 5,738
62,267
Electrical Equipment &
Electronics (4.7%)
Baldor Electric Co. 2,100 51,318
Canon Inc. ADR 216 4,941
Dynatech Corp.-When Issued* 400 1,248
General Electric Co. 1,200 109,200
Fuji Photo Film ADR 270 9,332
Linear Technology Corp. 400 24,125
Northern Telecom Limited 117 6,640
Pitney-Bowes Inc. 400 19,250
Sony Corp. ADR 115 9,897
TDK Corp. ADR 63 4,694
240,645
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
AUL American Series Fund, Inc.
Schedule of Investments
Aggressive Investor Portfolio (continued)
June 30, 1998
(unaudited)
Market
Description Shares Value
Common Stock (78.9%)
Entertainment & Leisure (2.2%)
CPI Corp. 1,400 $ 33,337
Fleetwood Enterprises, Inc. 1,500 60,000
Marriott International Class A 400 12,950
Nintendo Company Ltd. 449 5,195
111,482
Food, Beverage, Tobacco (3.8%)
Coca-Cola Co. 1,000 85,500
Compass Group PLC ADR 558 6,423
Diageo PLC ADR 201 9,686
Interstate Bakeries 200 6,638
Groupe Danone ADR 104 5,720
Michael Foods, Inc. 1,000 29,374
Nestle SA ADR 132 14,124
Pepsico Inc. 600 24,712
Safeway Inc. 200 8,138
Tesco PLC ADR 490 4,807
195,122
Furniture & Apparel (5.0%)
Hillenbrand Industries, Inc. 800 48,000
Kellwood Co. 1,100 39,325
La Z Boy Inc. 1,300 73,450
Liz Claiborne, Inc. 900 47,025
Reebok International 1,600 44,300
252,100
Health Care (9.6%)
Acuson Corp.* 1,300 23,644
Amgen Inc. 400 26,150
Bristol-Myers Squibb Co. 600 68,962
Lilly (Eli) and Co. 400 26,425
Merck & Co. 900 120,374
Novartis AG ADR 142 11,815
Pfizer Inc. 200 21,738
Procter & Gamble Co. 600 54,637
Roche Holding AG ADR 116 11,390
Schering-Plough 400 36,650
United Healthcare Corp. 400 25,400
Watson Pharmaceutical Inc. 200 9,338
Wellpoint Health Networks, Inc. 600 44,400
Zeneca Group PLC ADR 111 4,870
485,793
Information Processing &
Telecommunications (14.7%)
Alcatel Alsthom CGE ADR 381 $ 15,502
Ameritech Corporation/Del 800 35,900
A T & T Corp. 600 34,275
BMC Software Inc. 400 20,775
British Telecommunications
PLC ADR 45 5,558
Cadence Design System Inc. 200 6,250
CIA Telecom Chile ADR 90 1,828
Cisco Systems, Inc. 600 55,237
Compaq Computer Corp. 1,400 39,725
Dell Computer Corp. 400 37,125
Deutsche Telekom AG ADR 233 6,408
ECI Telecommunications
Limited Design 121 4,583
Franklin Resource Inc. 600 32,400
Hewlett-Packard Co. 200 11,975
Intel Corp. 1,000 74,125
International Business
Machines Corp. 400 45,925
Microsoft Corp. 800 86,700
Novell, Inc.* 2,000 25,500
Stratus Computer Inc. 1,000 25,375
Sun Microsystems, Inc.* 1,700 73,843
Systeme, Anwendungen,
Produkte AG ADR 52 11,781
Tele-Danmark ADR 111 5,231
Telebras ADR 39 4,258
Telecom Italia SPA ADR 189 13,892
Telefonos De Mexico CL L ADR 44 2,115
Tellabs Inc. 200 14,325
Telxon Corp. 1,500 48,562
Vodafone Group PLC ADR 47 5,925
745,098
Manufacturing (0.4%)
Mannesmann AG ADR 140 14,200
RWE AG ADR 138 8,280
22,480
Media (1.4%)
Grupo Televisa S.A. ADR 136 5,117
Knight-Ridder Inc. 400 22,025
Liberty Media Group 400 15,525
Omnicon Group Inc. 400 19,950
Royal PTT Nederland ADR 96 6,108
68,725
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
AUL American Series Fund, Inc.
Schedule of Investments
Aggressive Investor Portfolio (continued)
June 30, 1998
(unaudited)
Market
Description Shares Value
Common Stock (78.9%)
Merchandising (1.7%)
Kroger Co. 400 $ 17,150
Longs Drug Stores, Inc. 1,700 49,087
Gymboree Corp. 1,400 21,219
87,456
Metals & Mining (3.9%)
AK Steel Holding Corp. 2,400 42,900
Aluminum Company of America 700 46,156
Cleveland-Cliffs, Inc. 900 48,263
Oregon Steel Mills, Inc. 1,800 33,525
Phelps Dodge Corp. 500 28,594
199,438
Oil & Oil Services (2.9%)
British Petroleum Ltd. ADR 115 10,149
Elf Aquitaine ADR 155 11,005
ENI SPA ADR 110 7,150
Lukoil Holdings ADR 36 1,203
Mobil Corp. 200 15,325
Royal Dutch Petroleum Co. 800 43,850
Shell Transport & Trading
Company ADR 219 9,280
Surgutneftegaz ADR 323 1,286
Valero Energy Corp. 1,400 46,550
145,798
Retailing (1.5%)
Boots Company PLC ADR 233 7,736
Costco Companies Inc. 100 63,062
The Great Universal Stores PLC 398 5,262
76,060
Transportation (1.5%)
Alexander & Baldwin, Inc. 1,600 $ 46,600
Norfolk Southern Corp. 1,000 29,813
76,413
Utilities (0.8%)
BG PLC ADR 186 5,348
Gener S.A. ADR 104 1,898
P G & E Corp. 1,000 31,562
38,808
Miscellaneous (3.9%)
Albertsons Inc. 400 20,725
Browning-Ferris Inds. 200 6,950
Carlisle Companies, Inc. 700 30,143
CHF 15 5,578
Dayton-Hudson Corp. 400 19,400
Kelly Services Inc. 1,400 49,525
Park Electrochemical Corp. 1,100 23,238
Sysco Corp. 1,200 30,750
Unilever N.V. -
New York Shares 105 8,288
Unilever PLC ADR 125 5,414
200,011
Total common stock (cost: $3,948,774) 3,997,917
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
AUL American Series Fund, Inc.
Schedule of Investments
Aggressive Investors Portfolio (continued)
June 30, 1998
(unaudited)
Market
Description Shares Value
Mutual Funds (4.8%)
Federated High Yield Fund 25,615 $ 245,133
Total mutual funds (cost: $250,000) 245,133
Interest Maturity Principal
Rate Date Amount
Long-Term Notes (15.0%)
Government (7.6%)
U.S. Treasury Bonds 6.125% 11/15/27 $ 25,000 26,789
U.S. Treasury Notes 6.750% 04/30/00 175,000 178,690
U.S. Treasury Notes 6.250% 04/30/01 75,000 76,394
U.S. Treasury Notes 6.250% 05/31/99 50,000 50,321
U.S. Treasury Notes 5.500% 02/15/08 25,000 24,984
U.S. Treasury Notes 5.625% 05/15/08 25,000 25,352
382,530
Mortgage Backed Securities (3.9%)
GNMA Pool #454007 6.500% 04/15/28 98,829 98,641
GNMA Pool #474143 7.000% 04/15/28 98,817 100,433
199,074
Corporate (3.5%)
Anheuser-Busch Cos. Inc.
Debentures 6.750% 12/15/27 25,000 25,936
General Motors Acceptance
Corporation Notes 5.850% 04/06/00 25,000 24,969
Ford Motor Credit Corp. Notes 7.750% 11/15/02 25,000 26,560
GTE Corp. Debentures 6.940% 04/15/28 25,000 25,195
Key Bank NA Notes 6.500% 10/15/27 25,000 25,192
Nationsbank Corp. Notes 5.750% 03/15/01 25,000 24,858
Union Pacific Resources
Debentures 7.050% 05/15/18 25,000 25,163
177,873
Total notes and bonds (cost: $755,071) 759,477
Cash and Cash Equivalents (1.3%)
BONY Cash Reserve 66,113
Total cash and cash equivalents (cost: $66,113) 66,113
Total Investments (cost: $5,019,958) $ 5,068,640
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
AUL American Series Fund, Inc.
Schedule of Investments
Moderate Investor Portfolio
June 30, 1998
(unaudited)
Market
Description Shares Value
Common Stock (58.6%)
Aerospace & Air Transport (1.0%)
Boeing Co. 400 $ 17,825
British Aerospace PLC 908 6,969
Northwest Airlines
Corp. Class A 100 3,856
Precision Castparts Corp. 200 10,675
United Technologies Corp. 100 9,250
48,575
Automotive & Auto Parts (2.1%)
Bandag, Inc. 700 27,300
Ford Motor Co. 800 47,200
Lear Corp. 100 5,131
TBC Corp. 2,200 14,575
Toyota Motor Corp. ADR 95 4,928
Volvo AB ADR 236 6,977
106,111
Banks & Financial (7.4%)
American Express Co. 500 57,000
Associates First Capital Corp. 209 16,067
AXA UAP ADR 143 8,124
Banc One Corp. 600 33,488
Banco Central
Hispanoamericano ADR 156 4,875
Banco Santander ADR 154 7,806
Bank of Ireland ADR 122 10,050
Bank of Tokyo-Mitsubishi 417 4,587
Barclays PLC ADR 61 7,015
Bayer Vereinsbank ADR 100 8,503
Federal National Mortgage
Association 100 6,075
Fifth Third Bancorp 150 9,450
ING Groep N.V. ADR 133 8,695
Istituto Mobiliare Itali ADR 146 6,962
National Westminster Bank ADR 46 4,945
Ohio Casualty Corp. 700 30,975
Royal Bank of Canada 127 7,660
SLM Holdings Corp. 300 14,700
Societe Generale ADR 253 10,520
SunAmerica Inc. 300 17,231
Travelers Group, Inc. 900 54,563
UBS AG Foreign Ordinary Share 15 5,578
Washington Mutual Inc. 900 39,094
373,963
Broadcasting & Publishing (3.4%)
Chris-Craft Industries, Inc.* 500 $ 27,344
Deluxe Corp. 800 28,650
Gannett Co. 500 35,531
Gibson Greetings, Inc. 800 20,000
Meredith Corp. 500 23,469
Moore Corp., Ltd 2,100 27,825
WPP Group PLC ADR 174 11,701
174,520
Building & Forest Products (0.1%)
CRH PLC ADR 64 4,544
Cementos De Mexico ADR 7 52
CEMEX SA ADR 241 2,092
6,688
Business & Public Services (0.7%)
Interpublic Group of
Compaines, Inc. 500 30,344
Paychex Inc. 150 6,103
36,447
Chemicals (1.0%)
Henkel KGAA ADR 158 13,112
Montedison SPA ADR 338 4,204
Praxair Inc. 400 18,725
Rhone-Poulenc ADR 198 11,125
Solutia Inc. 100 2,869
50,035
Electrical Equipment &
Electronics (3.6%)
Baldor Electric Co. 1,600 39,100
Canon Inc. ADR 216 4,941
Dynatech Corp.-When Issued* 300 936
General Electric Co. 800 72,800
Fuji Photo Film ADR 270 9,332
Linear Technology Corp. 300 18,094
Northern Telecom Limited 117 6,640
Pitney-Bowes Inc. 300 14,437
Sony Corp. ADR 115 9,897
TDK Corp. ADR 63 4,694
180,871
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
AUL American Series Fund, Inc.
Schedule of Investments
Moderate Investor Portfolio (continued)
June 30, 1998
(unaudited)
Market
Description Shares Value
Common Stock (58.6%)
Entertainment & Leisure (1.7%)
CPI Corp. 1,100 $ 26,193
Fleetwood Enterprises, Inc. 1,100 44,000
Marriott International Class A 300 9,713
Nintendo Company Ltd. 449 5,195
85,101
Food, Beverage, Tobacco (2.9%)
Coca-Cola Co. 700 59,850
Compass Group PLC ADR 558 6,423
Diageo PLC ADR 201 9,686
Interstate Bakeries 100 3,319
Groupe Danone ADR 104 5,720
Michael Foods, Inc. 800 23,500
Nestle SA ADR 132 14,124
Pepsico Inc. 400 16,474
Safeway Inc. 100 4,069
Tesco PLC ADR 490 4,807
147,972
Furniture & Apparel (3.8%)
Hillenbrand Industries, Inc. 600 36,000
Kellwood Co. 800 28,600
La Z Boy Inc. 1,000 56,500
Liz Claiborne, Inc. 700 36,575
Reebok International 1,200 33,225
190,900
Health Care (6.7%)
Acuson Corp.* 1,000 18,187
Amgen Inc. 300 19,613
Bristol-Myers Squibb Co. 400 45,974
Lilly (Eli) and Co. 300 19,819
Merck & Co. 600 80,250
Novartis AG ADR 142 11,815
Procter & Gamble Co. 400 36,424
Pfizer Inc. 100 10,869
Roche Holding AG ADR 116 11,390
Schering-Plough 300 27,488
United Healthcare Corp. 300 19,050
Watson Pharmaceutical Inc. 100 4,669
Wellpoint Health Networks, Inc. 400 29,600
Zeneca Group PLC ADR 111 4,870
340,018
Information Processing &
Telecommunications (10.7%)
Alcatel Alsthom CGE ADR 381 $ 15,502
Ameritech Corporation/Del 500 22,438
A T & T Corp. 500 28,562
BMC Software Inc. 200 10,388
British Telecommunications
PLC ADR 45 5,558
Cadence Design System Inc. 100 3,125
CIA Telecom Chile ADR 90 1,828
Cisco Systems, Inc. 400 36,824
Compaq Computer Corp. 900 25,537
Dell Computer Corp. 300 27,844
Deutsche Telekom AG ADR 233 6,408
ECI Telecommunications
Limited Design 121 4,583
Franklin Resource Inc. 400 21,600
Hewlett-Packard Co. 100 5,988
Intel Corp. 700 51,887
International Business
Machines Corp. 300 34,444
Microsoft Corp. 500 54,187
Novell, Inc.* 1,500 19,125
Stratus Computer Inc. 800 20,300
Sun Microsystems, Inc.* 1,300 56,468
Systeme, Anwendungen,
Produkte AG ADR 52 11,781
Tele-Danmark ADR 111 5,231
Telebras ADR 39 4,258
Telecom Italia SPA ADR 189 13,892
Telefonos De Mexico
CL L ADR 44 2,115
Tellabs Inc. 100 7,163
Telxon Corp. 1,100 35,612
Vodafone Group PLC ADR 47 5,925
538,573
Manufacturing (0.4%)
Mannesmann AG ADR 140 14,200
RWE AG ADR 138 8,280
22,480
Media (1.1%)
Grupo Televisa S.A. ADR 136 5,117
Knight-Ridder Inc. 300 16,518
Liberty Media Group 300 11,644
Omnicon Group Inc. 300 14,963
Royal PTT Nederland ADR 96 6,108
54,350
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
AUL American Series Fund, Inc.
Schedule of Investments
Moderate Investor Portfolio (continued)
June 30, 1998
(unaudited)
Market
Description Shares Value
Common Stock (58.6%)
Merchandising (1.3%)
Kroger Co. 300 $ 12,863
Longs Drug Stores, Inc. 1,300 37,537
Gymboree Corp. 1,000 15,156
65,556
Metals & Mining (2.8%)
AK Steel Holding Corp. 1,800 32,175
Aluminum Company
of America 500 32,969
Cleveland-Cliffs, Inc. 700 37,537
Oregon Steel Mills, Inc. 1,300 24,213
Phelps Dodge Corp. 300 17,156
144,050
Oil & Oil Services (2.3%)
British Petroleum Ltd. ADR 115 10,149
Elf Aquitaine ADR 155 11,005
ENI SPA ADR 110 7,150
Lukoil Holdings ADR 36 1,203
Mobil Corp. 100 7,663
Royal Dutch Petroleum Co. 600 32,888
Shell Transport & Trading
Company ADR 219 9,280
Surgutneftegaz ADR 323 1,286
Valero Energy Corp. 1,100 36,574
117,198
Retailing (1.1%)
Boots Company PLC ADR 233 $ 7,736
Costco Companies Inc. 700 44,143
The Great Universal
Stores PLC 398 5,262
57,141
Transportation (1.2%)
Alexander & Baldwin, Inc. 1,200 34,950
Norfolk Southern Corp. 800 23,850
58,800
Utilities (0.6%)
BG PLC ADR 186 5,348
Gener S.A. ADR 104 1,898
P G & E Corp. 700 22,093
29,339
Miscellaneous (2.7%)
Albertsons Inc. 300 15,544
Browning-Ferris Inds. 100 3,475
Carlisle Companies, Inc. 500 21,531
Dayton-Hudson Corp. 200 9,700
Kelly Services Inc. 1,100 38,913
Park Electrochemical Corp. 800 16,900
Sysco Corp. 800 20,500
Unilever N.V. - New York Shares 105 8,288
Unilever PLC ADR 125 5,414
140,265
Total common stock (cost: $2,936,777) 2,968,953
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
29
<PAGE>
AUL American Series Fund, Inc.
Shedule of Ivestments
Moderate Investor Portfolio (continued)
June 30, 1998
(unaudited)
Market
Description Shares Value
Mutual Funds (8.8%)
Federate Investors
Prime Obligation 200,000 $ 200,000
Federated High Yield Fund 25,615 245,133
Total mutual funds (cost: $450,000) 445,133
Interest Maturity Principal
Rate Date Amount
Long-Term Notes (29.9%)
Government (14.1%)
U.S. Treasury Bonds 6.125% 11/15/27 $ 50,000 53,578
U.S. Treasury Notes 6.750% 04/30/00 100,000 102,109
U.S. Treasury Notes 6.250% 04/30/01 125,000 127,323
U.S. Treasury Notes 6.250% 05/31/99 325,000 327,083
U.S. Treasury Notes 5.500% 02/15/08 50,000 49,969
U.S. Treasury Notes 5.625% 05/15/08 50,000 50,703
710,765
Mortgage Backed Securities (8.8%)
GNMA Pool #454007 6.500% 04/15/28 222,365 221,941
GNMA Pool #474143 7.000% 04/15/28 222,338 225,975
447,916
Corporate (7.0%)
Anheuser-Busch Cos. Inc.
Debentures 6.750% 12/15/27 50,000 51,871
General Motors Acceptance
Corporation Notes 5.850% 04/06/00 50,000 49,939
Ford Motor Credit Corp. Notes 7.750% 11/15/02 50,000 53,121
GTE Corp. Debentures 6.940% 04/15/28 50,000 50,390
Key Bank NA Notes 6.500% 10/15/27 50,000 50,384
Nationsbank Corp. Notes 5.750% 03/15/01 50,000 49,717
Union Pacific Resources
Debentures 7.050% 05/15/18 50,000 50,325
355,747
Total notes and bonds (cost: $1,505,562) 1,514,428
Cash and Cash Equivalents (2.7%)
BONY Cash Reserve 134,626
Total cash and cash equivalents (cost: $134,626) 134,626
Total Investments (cost: $5,026,965) $ 5,063,140
The accompanying notes are an integral part of the financial statements.
30
<PAGE>
AUL American Series Fund, Inc.
Schedule of Investments
Conservative Investor Portfolio
June 30, 1998
(unaudited)
Market
Description Shares Value
Common Stock (40.0%)
Aerospace (0.7%)
Boeing Co. 300 $ 13,369
British Aerospace PLC 444 3,408
Northwest Airlines Corp.
Class A 100 3,856
Precision Castparts Corp. 100 5,338
United Technologies Corp. 100 9,250
35,221
Automotive & Auto Parts (1.5%)
Bandag, Inc. 500 19,500
Ford Motor Co. 500 29,500
Honda Motor Co. 86 6,144
Lear Corp. 100 5,131
TBC Corp. 1,400 9,275
Toyota Motor Corporation ADR 47 2,438
Volvo AB ADR 118 3,488
75,476
Banks & Financial (4.8%)
American Express Co. 400 45,600
Associates First Capital Corp. 157 12,069
AXA UAP ADR 71 4,034
Banc One Corp. 400 22,325
Banco Central
Hispanoamericano ADR 77 2,406
Banco Santander ADR 77 3,903
Bank of Ireland ADR 61 5,025
Bank of Tokyo-Mitsubshi 208 2,288
Barclays PLC ADR 31 3,565
Bayer Vereinsbank ADR 47 3,996
Federal National Mortgage
Association 100 6,075
Fifth Third Bancorp 150 9,450
ING Groep N.V. ADR 63 4,119
Istituto Mobiliare Itali ADR 73 3,481
National Westminster
Bank ADR 23 2,473
Ohio Casualty Corp. 500 22,125
Royal Bank of Canada 63 3,800
SLM Holdings Corp. 200 9,800
Societe Generale ADR 127 5,281
SunAmerica Inc. 200 11,488
Travelers Group, Inc. 600 36,374
Washington Mutual Inc. 600 26,063
245,740
Broadcasting & Publishing (2.8%)
Chris-Craft Industries, Inc.* 800 $ 43,750
Deluxe Corp. 500 17,906
Gannett Co. 400 28,425
Gibson Greetings, Inc. 600 15,000
Meredith Corp. 300 14,081
Moore Corp., Ltd. 1,400 18,550
WPP Group PLC ADR 87 5,851
143,563
Building & Forest Products (0.1%)
CRH PLC ADR 32 2,272
Cementos De Mexico ADR 3 22
CEMEX SA ADR 120 1,042
3,336
Business & Public Services (0.6%)
Interpublic Group of
Compaines, Inc. 400 24,275
Paychex Inc. 150 6,103
30,378
Chemicals (0.6%)
Henkel KGAA ADR 76 6,307
Montedison SPA ADR 169 2,102
Praxair Inc. 300 14,043
Rhone-Poulenc ADR 99 5,563
Solutia Inc. 100 2,869
30,884
Electrical Equipment &
Electronics (2.4%)
Baldor Electric Co. 1,100 26,880
Canon Inc. ADR 106 2,425
Dynatech Corp.-When Issued* 200 624
General Electric Co. 600 54,600
Fuji Photo Film ADR 133 4,597
Linear Technology Corp. 200 12,062
Northern Telecom Limited 58 3,292
Pitney-Bowes Inc. 200 9,625
Sony Corp. ADR 58 4,992
TDK Corp. ADR 31 2,310
121,407
Entertainment & Leisure (1.1%)
CPI Corp. 700 16,669
Fleetwood Enterprises, Inc. 800 32,000
Marriott International Class A 200 6,475
Nintendo Company Ltd. 225 2,603
57,747
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
31
<PAGE>
AUL American Series Fund, Inc.
Schedule of Investments
Conservative Investor Portfolio (continued)
June 30, 1998
(unaudited)
Market
Description Shares Value
Common Stock (40.0%)
Food, Beverage, Tobacco (1.9%)
Coca-Cola Co. 500 $ 42,750
Compass Group PLC ADR 274 3,154
Diageo PLC ADR 101 4,867
Interstate Bakeries 100 3,319
Groupe Danone ADR 52 2,860
Michael Foods, Inc. 500 14,687
Nestle SA ADR 66 7,062
Pepsico Inc. 300 12,356
Safeway Inc. 100 4,069
Tesco PLC ADR 245 2,403
97,527
Furniture & Apparel (2.6%)
Hillenbrand Industries, Inc. 400 24,000
Kellwood Co. 600 21,450
La Z Boy Inc. 700 39,550
Liz Claiborne, Inc. 500 26,125
Reebok International 800 22,150
133,275
Health Care (4.7%)
Acuson Corp.* 700 12,731
Amgen Inc. 200 13,075
Bristol-Myers Squibb Co. 300 34,480
Lilly (Eli) and Co. 200 13,213
Merck & Co. 400 53,500
Novartis AG ADR 71 5,907
Procter & Gamble Co. 300 27,319
Pfizer Inc. 100 10,869
Roche Holding AG ADR 58 5,695
Schering-Plough 200 18,325
United Healthcare Corp. 200 12,700
Watson Pharmaceutical Inc. 100 4,669
Wellpoint Health Networks, Inc 300 22,200
Zeneca Group PLC ADR 57 2,501
237,184
Information Processing &
Telecommunications (7.3%)
Alcatel Alsthom CGE ADR 190 7,731
Ameritech Corporation/Del 400 17,950
A T & T Corp. 300 17,138
BMC Software Inc. 200 10,388
British Telecommunications
PLC ADR 22 2,717
Cadence Design System Inc. 100 3,125
CIA Telecom Chile ADR 45 914
Cisco Systems, Inc. 300 27,618
Compaq Computer Corp. 700 19,862
Dell Computer Corp. 200 18,562
Deutsche Telekom AG ADR 116 3,190
ECI Telecommunications
Limited Design 60 2,273
Franklin Resource Inc. 300 16,200
Hewlett-Packard Co. 100 5,988
Intel Corp. 500 37,062
International Business
Machines Corp. 200 22,962
Microsoft Corp. 400 43,350
Novell, Inc.* 1,000 12,750
Stratus Computer Inc. 500 12,687
Sun Microsystems, Inc.* 800 34,750
Systeme, Anwendungen,
Produkte AG ADR 26 5,891
Telebras ADR 19 2,075
Telecom Italia SPA ADR 94 6,909
Tele-Danmark ADR 55 2,592
Telefonos De Mexico
CL L ADR 22 1,057
Tellabs Inc. 100 7,162
Telxon Corp. 800 25,900
Vodafone Group PLC ADR 24 3,026
371,829
Manufacturing (0.2%)
Mannesmann AG ADR 70 7,100
RWE AG ADR 69 4,140
11,240
Media (0.7%)
Grupo Televisa S.A. ADR 68 2,559
Knight-Ridder Inc. 200 11,012
Liberty Media Group 200 7,763
Omnicon Group Inc. 200 9,975
Royal PTT Nederland ADR 48 3,054
34,363
Merchandising (0.9%)
Kroger Co. 200 8,575
Longs Drug Stores, Inc. 900 25,988
Gymboree Corp. 700 10,609
45,172
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
32
<PAGE>
AUL American Series Fund, Inc.
Schedule of Investments
Conservative Investor Portfolio (continued)
June 30, 1998
(unaudited)
Market
Description Shares Value
Common Stock (40.0%)
Metals & Mining (1.9%)
AK Steel Holding Corp. 1,200 $ 21,450
Aluminum Company of America 300 19,781
Cleveland-Cliffs, Inc. 500 26,812
Oregon Steel Mills, Inc. 900 16,763
Phelps Dodge Corp. 200 11,438
96,244
Oil & Oil Services (1.4%)
British Petroleum Ltd. ADR 57 5,030
Elf Aquitaine ADR 77 5,467
ENI SPA ADR 53 3,445
Lukoil Holdings ADR 18 602
Mobil Corp. 100 7,663
Royal Dutch Petroleum Co. 400 21,925
Shell Transport &
Trading Company ADR 110 4,661
Surgutneftegaz ADR 161 641
Valero Energy Corp. 700 23,275
72,709
Retailing (0.7%)
Boots Company PLC ADR 111 3,685
Costco Companies Inc. 500 31,531
The Great Universal
Stores PLC 194 2,565
37,781
Transportation (0.8%)
Alexander & Baldwin, Inc. 800 $ 23,300
Norfolk Southern Corp. 500 14,906
38,206
Utilities (0.4%)
BG PLC ADR 93 2,674
Gener S.A. ADR 52 949
P G & E Corp. 500 15,781
19,404
Miscellaneous (1.9%)
Albertsons Inc 200 10,363
Browning-Ferris Inds. 100 3,475
Carlisle Companies, Inc. 300 12,919
CHF 7 2,603
Dayton-Hudson Corp. 200 9,700
Kelly Services Inc. 700 24,762
Park Electrochemical Corp. 500 10,563
Sysco Corp. 600 15,374
Unilever N.V. - New York Shares 52 4,105
Unilever PLC ADR 62 2,685
96,549
Total common stock (cost: $2,010,700) 2,035,235
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
33
<PAGE>
AUL American Series Fund, Inc.
Schedule of Investments
Conservative Investor Portfolio (continued)
June 30, 1998
(unaudited)
Market
Description Shares Value
Mutual Funds (9.2%)
Federated High Yield Fund 25,615 $ 245,133
Federated Investors Prime Obligation 220,000 220,000
Total mutual funds (cost: $470,000) 465,133
Interest Maturity Principal
Rate Date Amount
Long-Term Notes (44.2%)
Government (21.0%)
U.S. Treasury Bonds 6.125% 11/15/27 $ 75,000 $ 80,367
U.S. Treasury Notes 6.750% 04/30/00 125,000 127,636
U.S. Treasury Notes 6.250% 04/30/01 225,000 229,183
U.S. Treasury Notes 6.250% 05/31/99 500,000 503,204
U.S. Treasury Notes 5.500% 02/15/08 50,000 49,969
U.S. Treasury Notes 5.625% 05/15/08 75,000 76,055
1,066,414
Mortgage Backed Securities (12.7%)
GNMA Pool #456155 6.500% 04/15/28 321,083 320,469
GNMA Pool #474143 7.000% 04/15/28 321,155 326,409
646,878
Corporate (10.5%)
Anheuser-Busch Cos. Inc.
Debentures 6.750% 12/15/27 75,000 77,806
General Motors Acceptance
Corporation Notes 5.850% 04/06/00 75,000 74,908
Ford Motor Credit Corp. Notes 7.750% 11/15/02 75,000 79,680
GTE Corp. Debentures 6.940% 04/15/28 75,000 75,585
Key Bank NA Notes 6.500% 10/15/27 75,000 75,578
Nationsbank Corp. Notes 5.750% 03/15/01 75,000 74,575
Union Pacific Resources
Debentures 7.050% 05/15/18 75,000 75,488
533,620
Total notes and bonds (cost: $2,234,029) 2,246,912
Short-term Notes (3.9%)
Associates Corp. 5.62% 07/03/98 200,000 199,848
Total certificate of deposits (cost: $199,848) 199,848
Cash and Cash Equivalents (2.7%)
BONY Cash Reserve 136,000
Total cash and cash equivalents (cost: $136,000) 136,000
Total Investments (cost: $5,050,577) $ 5,083,128
The accompanying notes are an integral part of the financial statements.
34
<PAGE>
Notes to Financial Statements
1. Summary of Significant Accounting Policies
The AUL American Series Fund, Inc. (Fund) was incorporated under the laws of
Maryland on July 26, 1989, and is registered under the Investment Company Act of
1940, as amended, as an open-end, diversified management investment company. As
a series type of mutual fund, the Fund issues shares of common stock relating
to separate investment portfolios consisting of the Equity Portfolio, Money
Market Portfolio, Bond Portfolio, Managed Portfolio, Tactical Asset Allocation
Portfolio (Tactical Asset), Aggressive Investor Portfolio, Moderate Investor
Portfolio and Conservative Investor Portfolio, hereinafter, referred to as
Portfolios. The Aggressive Investor Portfolio, Moderate Investor Portfolio, and
Conservative Investor Portfolio are collectively referred to as the Lifestyle
Portfolios. Currently, the Fund offers shares only to separate accounts of
American United Life Insurance Company (AUL) to serve as an underlying
investment vehicle for variable annuity and variable life contracts. The Fund
commenced operations on April 10, 1990. The Lifestyle Portfolios commenced
operations on March 31, 1998.
Investments
Securities traded on a national securities exchange are valued at the last trade
price. Listed securities for which no sale was reported on the valuation date
are valued at the latest bid price. Short-term notes are valued at amortized
cost which approximates market value. Fixed income securities for which
representative market quotes are readily available are valued at the latest bid
price as quoted by one or more dealers who make a market in such securities.
U.S. Government obligations are valued at the latest bid price; however, short
term obligations maturing in 60 days or less, when purchased, are valued at
amortized cost which approximates market value.
The Money Market Portfolio securities are valued at amortized cost. The Funds
use of the amortized cost method is conditioned on its compliance with certain
provisions of Rule 2a-7 of the Investment Company Act of 1940. The Investment
Advisor reviews this method of valuation to ensure that the portfolio securities
are reflected at their fair value.
Security transactions are recorded on the trade date plus one. Realized gains
and losses are determined on specific identification basis.
Income and Expense
Dividend income is recorded on the ex-dividend date, and interest income is
accrued daily. Portfolio expenses are recorded on an accrual basis.
Foreign Currency Transactions
The accounting records of the Portfolios are maintained in U.S. dollars. All
assets and liabilities initially expressed in foreign currencies are converted
into U.S. dollars at prevailing exchange rates. Purchases and sales of
investment securities, dividend and interest income, and certain expenses are
translated at the rates of exchange prevailing on the respective dates of such
transactions.
Net realized foreign currency exchange gains or losses arise from
sales of foreign currencies and the difference between asset and liability
amounts initially stated in foreign currencies and the U.S. dollar value of the
amounts actually received or paid. net unrealized foreign currency translation
gains or losses arise from changes in the value of assets and liabilities, other
than portfolio securities, resulting from changes in the exchange rates.
Net realized and unrealized foreign currency exchange gains or losses occurring
during the holding period of portfolio securities are a component of realized
gain (loss) on investments and unrealized appreciation (depreciation) on
investments, respectively.
Forward Foreign Currency Exchange Contracts The Tactical Asset Allocation and
Lifestyle Portfolios may enter into forward foreign currency exchange contracts
for the purpose of settling specific purchases or sales of securities
denominated in a foreign currency or to hedge the Portfolios exposure to
foreign currency exchange rate fluctuations. When required, the Portfolios will
segregate assets in an amount sufficient to cover their obligations under the
hedge contracts. The net U.S. dollar value of foreign currency underlying all
contractual commitments held by the Portfolios and the resulting unrealized
appreciation or depreciation are determined daily using prevailing exchange
rates. Forward contracts involve elements of market risk in excess of the amount
reflected in the Statements of Net Assets. The Portfolios bear the risk of an
unfavorable change in the foreign currency exchange rate underlying the forward
contract. Additionally, losses may arise if the counterparties do not perform
under the contract terms.
Deferred Organization Costs Expenses incurred by the Fund in connection with its
organization have been capitalized and are amortized over five years on a
straight-line basis.
35
<PAGE>
Notes to Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Taxes
The fund qualifies as a regulated investment company under section M of the
Internal Revenue Code. The Funds policy is to distribute all income to
shareholders, therefore, no provision has been made for income taxes.
Dividend and Capital Gain Distributions
For the Money Market Portfolio, dividends from net investment income are
declared and paid daily. For all other portfolios, dividends from net investment
income are declared and paid quarterly. Distributions from net realized gains on
investments are declared and paid at least annually for all portfolios.
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. Transactions with AUL
As of June 30, 1998, AULs investment at value in the Fund is:
Equity $ 7,104,907
Tactical Asset Allocation 672,613
Aggressive Investor 5,073,000
Moderate Investor 5,068,000
Conservative Investor 5,071,500
$ 22,990,020
The Fund has an investment advisory agreement with AUL to act as its investment
advisor. AUL has a sub-advisory agreement with Dean Associates under which Dean
Associates acts as the Sub-Advisor to the Tactical Asset Portfolio. AUL has a
subadvisory agreement with BEA Associates under which BEA Associates acts as the
Sub-Advisor to a portion of the assets of the Lifestyle Portfolios. AUL has
agreed that its fees may be reduced if the aggregate ordinary operating expenses
of the Portfolios exceed 1% of the average daily net assets during the year. As
of June 30, 1998, AULs investment advisory fee was reduced for the Tactical
Asset. To the extent that AUL has reduced its advisory fees to prevent a
Portfolios aggregate ordinary operating expenses from exceeding 1% of its
average daily net assets, it may increase its advisory fee during any of the
next succeeding 5 years, provided that the aggregate ordinary operating expenses
in any given year do not exceed 1% of the average daily net assets in that year.
The total amount of any increase in AULs fees will not exceed the amount of the
prior fee reduction. AUL may terminate the policy of reducing its fee and/or
assuming Fund expenses upon 30 days prior written notice to the Fund, and in any
event, the policy will automatically terminate if the Investment Advisory
Agreement is terminated. The investment advisory fee incurred during the six
months ended June 30, 1998, was $674,764.
Certain directors of the Fund are officers of AUL.
3. Agreements with Banks
The Fund has agreements with The Bank of New York (Bank) whereby the Bank serves
as custodian of the securities and other assets of the Fund, and as the fund
accountant.
36
<PAGE>
Notes to Financial Statements (continued)
4. Investment Transactions
Purchases and sales of investment securities (excluding short-term securities
and money market mutual funds) during the six months ended June 30, 1998, were:
Portfolio
Equity Money Bond Managed Tactical
Market Asset
Common Stock:
Purchases $ 15,838,343 $ $ $ 5,945,215 $ 999,198
Proceeds from sales 9,898,160 4,734,708 283,150
Corporate Bonds:
Purchases 7,707,864 6,710,874 250,000
Proceeds from sales 9,950,653 6,716,007 148,461
Government Bonds:
Purchases 27,391,446 20,743,381 813,093
Proceeds from sales 20,212,045 16,135,015 204,302
Portfolio
Aggressive Moderate Conservative
Investor Investor Investor
Common Stock:
Purchases $ 4,369,812 $ 3,301,225 $ 2,352,635
Proceeds from sales 117,647 116,751 94,060
Corporate Bonds:
Purchases 201,731 403,462 605,192
Proceeds from sales 25,213 50,426 75,639
Government Bonds:
Purchases 831,734 1,658,686 2,489,408
Proceeds from sales 253,126 506,340 785,261
37
<PAGE>
Notes to Financial Statements (continued)
5. Authorized Capital Shares
The Fund has 325,000,000 authorized shares of $.001 par value capital
stock, which includes 20,000,000 unallocated shares. The remaining shares
are allocated to each of the Funds portfolios as follows:
Equity Portfolio 20,000,000
Money Market Portfolio 125,000,000
Bond Portfolio 20,000,000
Managed Portfolio 40,000,000
Tactical Asset Allocation Portfolio 25,000,000
Conservative Investor Portfolio 25,000,000
Moderate Investor Portfolio 25,000,000
Aggressive Investor Portfolio 25,000,000
305,000,000
6. Net Assets
Net Assets at June 30, 1998, are:
Portfolio
Equity Money Bond Managed Tactical
Market Asset
Proceeds from shares
sold and reinvested
distributions $96,434,312 $316,479,624 $ 78,868,059 $ 86,471,727 $6,127,779
Cost of shares
redeemed (33,876,828)(253,879,171) (41,023,475) (32,040,514) (709,352)
Undistributed net
investment income 439,530 535,962 600,141 33,149
Undistributed net
realized gain 4,716,649 685,412 2,761,898 47,963
Unrealized
appreciation 28,390,869 402,131 13,382,831 661,952
$ 96,104,532 $ 62,600,453 $ 39,468,089 $ 71,176,083 $6,161,491
Portfolio
Aggressive Moderate Conservative
Investor Investor Investor
Proceeds from shares
sold and reinvested
distributions $ 5,003,560 $ 5,002,829 $ 5,001,171
Cost of shares
redeemed
Undistributed net
investment income 11,934 23,241 32,413
Undistributed net
realized gain 12,430 8,743 6,749
Unrealized
appreciation 48,682 36,175 32,551
$ 5,076,606 $ 5,070,988 $ 5,072,884
38
<PAGE>
Notes to Financial Statements (continued)
7. Unrealized Appreciation (Depreciation)
Unrealized Appreciation (Depreciation) at June 30, 1998, is:
Portfolio
Equity Money Bond Managed Tactical
Market Asset
Common Stock:
Appreciation $30,092,930 $ $ $13,800,880 $ 826,167
Depreciation (1,702,069) (721,789) (173,454)
Notes and Bonds:
Appreciation 78 586,689 455,365 12,306
Depreciation (70) (184,558) (151,625) (3,067)
$28,390,869 $ $ 402,131 $13,382,831 $ 661,952
Portfolio
Aggressive Moderate Conservative
Investor Investor Investor
Common Stock:
Appreciation $ 227,057 $ 167,247 $ 114,025
Depreciation (182,781) (139,938) (94,357)
Notes and Bonds:
Appreciation 4,428 8,910 12,948
Depreciation (22) (44) (65)
$ 48,682 $ 36,175 $ 32,551
39
<PAGE>
Notes to Financial Statements (continued)
8. Net Shareholders
Shares outstanding at June 30, 1998, are:
Portfolio
Equity Money Bond Managed Tactical
Market Asset
AUL 309,609 50,001
Dean Investments 50,000
AUL American Unit
Trust 1,768,632 7,765,122 857,571 1,642,907 2,514
AUL Group Retirement Annuity
Separate Account II 1,595,569 49,711,554 2,418,658 2,130,103 10,758
AUL American Individual
Unit Trust 513,894 5,123,777 326,881 580,615 344,756
AUL American Individual
Variable Life Unit Trust 165 2
4,187,869 62,600,453 3,603,112 4,353,625 458,029
Portfolio
Aggressive Moderate Conservative
Investor Investor Investor
AUL 500,000 500,000 500,000
AUL American Unit Trust
AUl Group Retirement Annuity
Separate Account I
AUL Group Retirement Annuity
Separate Account II 355 282 116
500,355 500,282 500,116
40
<PAGE>
Financial Highlights
The per share amounts are based on shares outstanding throughout the year.
Equity Portfolio
Six months
ended For years ended
June 30,
1998 Dec. 31, Dec. 31, Dec. 31, Dec. 31,
(unaudited) 1997 1996 1995 1994
Per Share Data:
Investment Income $ 0.26 $ 0.42 $ 0.39 $ 0.37 $ 0.33
Expense 0.07 0.13 0.11 0.09 0.09
Net investment income 0.19 0.29 0.28 0.28 0.24
Net gain (loss) on
investments 1.81 4.64 2.44 2.12 0.26
Shareholder distributions:
Net investment income (0.08) (0.30) (0.28) (0.27) (0.24)
Realized gain (0.25) (0.19) (0.67)
Net increase (decrease) 1.92 4.38 2.44 1.94 (0.41)
Net asset value at
beginning of year 21.03 16.65 14.21 12.27 12.68
Net asset value at end
of period $ 22.95 $ 21.03 $ 16.65 $ 14.21 $ 12.27
Ratio to average net assets:*
Expense 0.62% 0.66% 0.70% 0.70% 0.73%
Net investment income 1.65% 1.52% 1.81% 2.08% 1.85%
Total return** 9.45% 29.59% 19.17% 19.45% 2.64%
Portfolio turnover rate 11% 9% 11% 10% 20%
Average commission
rate paid*** $ 0.0650 $ 0.0719 $ 0.0666 N/A N/A
Shares outstanding 4,187,869 3,816,406 3,042,989 2,483,962 1,675,654
*annualized
**Total returns for periods less than one year are not annualized. Total
return assumes reinvestment of dividends and capital gain distributions,
if any.
***computed by dividing the total amount of commission paid by the total
number of shares purchased and sold during the period for which there was a
commission. This disclosure was required by the SEC beginning in 1996.
The accompanying notes are an integral part of the financial statements.
41
<PAGE>
Financial Highlights (continued)
The per share amounts are based on shares outstanding throughout the year.
Money Market Portfolio
For years ended
Six months
ended
June 30,
1998 Dec. 31, Dec. 31, Dec. 31, Dec. 31,
(unaudited) 1997 1996 1995 1994
Per Share Data:
Investment Income $ 0.03 $ 0.06 $ 0.06 $ 0.06 $ 0.05
Expense 0.01 0.01 0.01 0.01
Net investment income 0.03 0.05 0.05 0.05 0.04
Net gain on investments
Shareholder distributions:
Net investment income (0.03) (0.05) (0.05) (0.05) (0.04)
Realized gain
Net increase (decrease)
Net asset value at
beginning of year 1.00 1.00 1.00 1.00 1.00
Net asset value at end
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Ratio to average net assets:*
Expense 0.62% 0.66% 0.70% 0.73% 0.75%
Net investment income 4.84% 4.83% 4.64% 5.13% 3.71%
Total return** 2.43% 4.85% 4.63% 5.09% 3.38%
Portfolio turnover rate
Average commission
rate paid*** N/A N/A N/A N/A N/A
Shares outstanding 62,600,453 55,756,942 40,227,475 24,290,006 15,495,643
*annualized
**Total returns for periods less than one year are not annualized. Total
return assumes reinvestment of dividends and capital gain distributions,
if any.
***computed by dividing the total amount of commission paid by the total
number of shares purchased and sold during the period for which there was a
commission. This disclosure was required by the SEC beginning in 1996.
The accompanying notes are an integral part of the financial statements.
42
<PAGE>
Financial Highlights (continued)
The per share amounts are based on shares outstanding throughout the year.
Bond Portfolio
Six months For years ended
ended
June 30,
1998 Dec. 31, Dec. 31, Dec. 31, Dec. 31,
(unaudited) 1997 1996 1995 1994
Per Share Data:
Investment Income $ 0.34 $ 0.67 $ 0.70 $ 0.75 $ 0.72
Expense 0.03 0.07 0.08 0.08 0.08
Net investment income 0.31 0.60 0.62 0.67 0.64
Net gain (loss) on
investments 0.11 0.25 (0.39) 1.07 (1.01)
Shareholder distributions:
Net investment income (0.15) (0.59) (0.63) (0.66) (0.64)
Realized gain (0.23) (0.01) (0.01)
Net increase (decrease) 0.27 0.03 (0.41) 1.07 (1.01)
Net asset value at
beginning of year 10.68 10.65 11.06 9.99 11.00
Net asset value at end
of period $ 10.95 $ 10.68 $ 10.65 $ 11.06 $ 9.99
Ratio to average net assets:
Expense 0.63% 0.67% 0.71% 0.70% 0.73%
Net investment income 5.56% 5.53% 5.85% 6.28% 6.19%
Total return** 4.00% 7.85% 2.23% 17.79% (3.56%)
Portfolio turnover rate 81% 107% 62% 55% 50%
Average commission
rate paid*** N/A N/A N/A N/A N/A
Shares outstanding 3,603,112 3,252,044 2,648,089 2,298,581 2,046,361
*annualized
**Total returns for periods less than one year are not annualized. Total
return assumes reinvestment of dividends and capital gain distributions,
if any.
***computed by dividing the total amount of commission paid by the total
number of shares purchased and sold during the period for which there was a
commission. This disclosure was required by the SEC beginning in 1996.
The accompanying notes are an integral part of the financial statements.
43
<PAGE>
Financial Highlights (continued)
The per share amounts are based on shares outstanding throughout the year.
Managed Portfolio
Six months
ended For years ended
June 30,
1998 Dec. 31, Dec. 31, Dec. 31, Dec. 31,
(unaudited) 1997 1996 1995 1994
Per Share Data:
Investment Income $ 0.31 $ 0.58 $ 0.53 $ 0.54 $ 0.50
Expense 0.05 0.10 0.09 0.08 0.08
Net investment income 0.26 0.48 0.44 0.46 0.42
Net gain (loss) on
investments 0.88 2.34 1.01 1.62 (0.45)
Shareholder distributions:
Net investment income (0.12) (0.48) (0.44) (0.46) (0.42)
Realized gain (0.41) (0.03) (0.20) (0.30)
Net increase (decrease) 1.02 1.93 0.98 1.42 (0.75)
Net asset value at
beginning of year 15.33 13.40 12.42 11.00 11.75
Net asset value at end
of period $ 16.35 $ 15.33 $ 13.40 $ 12.42 $ 11.00
Ratio to average net assets:*
Expense 0.62% 0.67% 0.70% 0.70% 0.73%
Net investment income 3.27% 3.27% 3.43% 3.86% 3.63%
Total return** 7.43% 20.95% 11.79% 19.13% (0.92%)
Portfolio turnover rate 41% 27% 34% 35% 34%
Average commission
rate paid*** $ 0.0656 $ 0.0706 $ 0.0668 N/A N/A
Shares outstanding 4,353,625 3,945,223 3,215,189 2,484,037 2,233,298
*annualized
**Total returns for periods less than one year are not annualized. Total
return assumes reinvestment of dividends and capital gain distributions,
if any.
***computed by dividing the total amount of commission paid by the total
number of shares purchased and sold during the period for which there was a
commission. This disclosure was required by the SEC beginning in 1996.
The accompanying notes are an integral part of the financial statements.
44
<PAGE>
Financial Highlights (continued)
The per share amounts are based on shares outstanding throughout the year.
Tactical Asset
Six months July 31, 1995
ended For years ended (commencement)
June 30, to
1998 Dec. 31, Dec. 31, Dec. 31,
(unaudited) 1997 1996 1995
Per Share Data:
Investment Income $ 0.23 $ 0.41 $ 0.39 $ 0.20
Expense 0.06 0.13 0.11 0.04
Net investment income 0.17 0.28 0.28 0.16
Net gain on investments 0.93 1.75 1.38 0.49
Shareholder distributions:
Net investment income (0.09) (0.28) (0.28) (0.16)
Realized gain (0.96) (0.17) (0.05)
Net increase (decrease) 1.01 0.79 1.21 0.44
Net asset value at
beginning of year 12.44 11.65 10.44 10.00
Net asset value at end
of period $ 13.45 $ 12.44 $ 11.65 10.44
Ratio to average net assets:*
Expense 0.99% 1.00% 1.00% 1.00%
Net investment income 2.53% 2.24% 2.62% 3.70%
Total return** 8.81% 15.48% 15.67% 6.49%
Portfolio turnover rate 12% 52% 25% 4%
Average commission
rate paid*** $ 0.0609 $ 0.0733 $ 0.0799 N/A
Shares outstanding 458,029 357,897 184,046 109,147
*annualized
**Total returns for periods less than one year are not annualized. Total
return assumes reinvestment of dividends and capital gain distributions,
if any.
***computed by dividing the total amount of commission paid by the total
number of shares purchased and sold during the period for which there was a
commission. This disclosure was required by the SEC beginning in 1996.
The accompanying notes are an integral part of the financial statements.
45
<PAGE>
Financial Statements (continued)
The per share amounts are based on shares outstanding throughout the year.
Aggressive Moderate Conservative
Investor Investor Investor
March 31, 1998 March 31, 1998 March 31, 1998
(commencement) (commencement) (commencement)
to June 30, 1998 to June 30, 1998 to June 30, 1998
(unaudited) (unaudited) (unaudited)
Per Share Data:
Investment Income $ 0.06 $ 0.09 $ 0.10
Expense 0.04 0.04 0.04
Net investment income 0.02 0.05 0.06
Net gain on investments 0.13 0.09 0.08
Shareholder distributions:
Net investment income
Realized gain
Net increase (decrease) 0.15 0.14 0.14
Net asset value at
beginning of period 10.00 10.00 10.00
Net asset value at end
of period $ 10.15 $ 10.14 $ 10.14
Ratio to average net assets:*
Expense 0.78% 0.78% 0.78%
Net investment income 0.48% 0.93% 1.29%
Total return*** 1.46% 1.36% 1.43%
Portfolio turnover rate 8% 7% 9%
Average commission
rate paid** $ 0.0528 $ 0.0530 $ 0.0530
Shares outstanding 500,355 500,282 500,116
*annualized
**computed by dividing the total amount of commission paid by the total
number of shares purchased and sold during the period for which there
was a commission. This disclosure was required by the SEC beginning in 1996.
***Total returns for periods less than one year are not annualized. Total
return assumes reinvestment of dividends and capital gain distributions,
if any.
The accompanying notes are an integral part of the financial statements.
46
<PAGE>
American United Life Insurance Company
P.O. Box 368
Indianapolis, Indiana 46206-0368
www.aul.com
P-13959A(7/98)