AUL American Series Fund, Inc.
Annual Report
December 31, 1999
This report and the financial statements contained herein are submitted for the
general information of the Participants. The report is not be distributed to
prospective investors as sales literature unless accompanied or preceded by an
effective prospectus of AUL American Series Fund, Inc., AUL American Unit Trust,
AUL American Individual Unit Trust, AUL American Individual Variable Life Unit
Trust or AUL American Individual Variable Annuity Unit Trust which contains
further information concerning the sales charge, expenses and other pertinent
information.
<PAGE>
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
Professor, Indiana University,
Center of Philanthropy, Indianapolis, Indiana
R. Stephen Radcliffe, Director, Vice President and Treasurer
Richard A. Wacker, Secretary
<PAGE>
A Message From The Chairman of the Board and President
It is with great pleasure that I welcome you to the year 2000. Although
doomsayers hypothesized potential calamities due to year 2000 computer problems,
I am happy to announce an uneventful transition into this new era.
The year 1999 can be characterized by its excesses.Technology companies rocketed
to new highs even though the majority of stocks registered poor performance. New
records were set in the IPO (initial public offering) market with well known
names such as UPS and Goldman Sachs. Technology start-ups were prolific as
investors seemed to have an insatiable appetite for Internet retailers, web-
site operators and anything carrying the dot-com title. It was also the year of
megamergers, the launch of the euro, and the recovery from Asias financial woes.
The U.S. economic expansion has also been unique in that it has now lasted for
nine years, making it the longest period of economic growth on record. The fact
that our economy has endured only eight months of recession since 1982 is
another unparalleled feat.
Good economic news can mean tough times for the bond market as investors worry
about the potential for an increase in inflation. The sharp 179 basis point
increase in the ten-year Treasury yield to 6.44% last year reflects this
concern.
Although inflation has not been a problem up to now, the Federal Reserve Board
felt compelled to take a pre-emptive stance last year by raising the Federal
Funds rate on three different occasions. The continued momentum of the economy
suggests that the Feds credit tightening had little apparent impact. The Federal
Reserve is expected to raise rates further this year to help achieve a
sustainable rate of economic growth.
Most economists are expecting the economy to continue on its current path, but
to moderate somewhat from current levels. The equity market is also expected to
report positive returns, but could experience a change or moderation in
leadership. Bonds will ultimately benefit if the Federal Reserve is successful
in slowing economic growth. For now, however, bond market investors remain
cautious. We encourage your careful review of the comments of the Portfolio
Managers on the following pages.
Investment performance for the AUL American Series Fund, Inc.for the year 1999
was:
Equity Portfolio -0.9% Tactical Asset Portfolio -3.1%
Money Market Portfolio 4.6% Conservative Investor Portfolio 5.8%
Bond Portfolio -1.1% Moderate Investor Portfolio 8.2%
Managed Portfolio -0.8% Aggressive Investor Portfolio 11.7%
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 or variable life contract.
In closing, American United Life remains committed to serving your investment
needs. We appreciate your continued confidence and support.
/s/ James W. Murphy
James W. Murphy
Chairman of the Board of Directors and President
Indianapolis, Indiana
January 31, 2000
1
<PAGE>
A Message From Kathryn Hudspeth, Portfolio Manager of Equity Portfolio
The Equity Portfolio invests primarily in equity securities selected on the
basis of fundamental investment research for their long-term growth prospects.
The Portfolio uses a value-driven approach in selecting securities,
concentrating on companies which appear undervalued compared to the market and
to their own historic valuation levels.
Last year was extremely volatile for the stock market with most major equity
indices ending the year in record territory. Yet these impressive gains masked
the narrowness and deterioration of the overall market. Over half of the
companies included in the S&P 500 posted negative returns for 1999. Nearly 70%
of the stocks listed on the NYSE declined in value last year. In essence, the
bull market of 1999 was driven primarily by one sector, which was technology.
The technology sector, which has experienced high earnings growth rates in
recent years, staged its own raging bull market while the rest of the
marketplace languished. Whether through on-line shopping, new computer operating
systems, or simply expanded use of personal computers or cellular telephones,
this seemed to be the only theme that investors found appealing during the year.
Most investors seemed willing to buy these companies regardless of their price
or valuation. Investors deciding not to be overweighted in this narrow
leadership experienced relatively poor performance.
The Equity Portfolio, which invests in value companies, utilizes a disciplined,
value approach when selecting companies. Since technology companies trading at
excessive premiums relative to the marketplace cannot normally be justified as
value companies, the Equity Portfolio was underweighted in this sector last
year. This was the primary reason why the investment return for the Equity
Portfolio lagged the return of the S&P 500, a commonly used stock benchmark. In
an environment where the merits of fundamentals have been overlooked, the common
reaction has been to put aside the traditional valuation tools and jump onto the
technology bandwagon. While this was, no doubt, a very successful strategy last
year, it is unlikely that this extended sector can continue at its current pace
indefinitely.
Instead, we believe superior investment opportunities exist in strong,
well-managed companies with improving fundamentals which are trading at
historically low valuations. As a result, the Equity Portfolio has heavy
positions in commodity and cyclical companies, many of which have lagged the
market in recent years due to weak commodity prices and slower earnings growth.
However, commodity prices are beginning to firm, and we expect dramatic earnings
improvement for these companies. As earnings begin to increase, this improvement
should be reflected in stock prices, a process which was already occurring by
the end of last year.
The exuberance in the technology sector has caused widely divergent trends in
pricing and valuation. With technology trading at historically expensive levels,
there appears to be little room (if any) for error with regard to earnings
performance for these companies. If the market broadens out, it would improve
the prospects for value stocks which are posed for a dramatic recovery in
relative earnings momentum. We believe that valuation should matter once again.
2
<PAGE>
AUL American Series Fund, Inc. Equity Portfolio
EQUITY S&P 500
Date Year Hypothetical Hypothetical
$10,000 $10,000
investment investment
- ---------------------------------------------------------------
4/10/90 4/90 10,000 10,000
6/90 10,257 10,540
9/90 9,096 9,092
12/90 90 9,886 9,906
3/91 11,454 11,346
6/91 11,868 11,320
9/91 12,084 11,925
12/91 91 12,415 12,925
3/92 12,765 12,598
6/92 12,868 12,838
9/92 12,920 13,243
12/92 92 13,660 13,909
3/93 14,477 14,517
6/93 14,283 14,588
9/93 14,804 14,964
12/93 93 15,681 15,311
3/94 15,696 14,731
6/94 15,399 14,793
9/94 16,165 15,516
12/94 94 16,094 15,513
3/95 16,544 17,024
6/95 17,870 18,650
9/95 18,900 20,114
12/95 95 19,228 21,325
3/96 19,997 22,470
6/96 20,846 23,479
9/96 21,758 24,204
12/96 96 22,915 26,223
3/97 23,378 26,926
6/97 26,745 31,627
9/97 29,696 33,996
12/97 97 29,694 34,972
3/98 32,626 39,850
6/98 32,500 41,165
9/98 28,200 37,069
12/98 98 31,807 44,965
3/99 31,793 47,160
6/99 35,260 50,472
9/99 31,821 47,310
12/99 99 31,503 54,364
- ---------------------------------------------------------------
Average Annual Total Returns for the period ended December 31, 1999
Equity S&P 500
Portfolio
One Year (0.9%) 21.0%
Five Years 14.4% 28.5%
Since Inception (4/10/90) 12.5% 19.0%
Value of a hypothetical $10,000
investment made 4/10/90 $31,503 $54,364
The charts show the Equity Portfolios total returns, which include changes in
share price and reinvestment of dividends and capital gains. Figures for the S&P
500, an unmanaged index of common stocks, include reinvestment of dividends and
capital gains. S&P 500 is a registered trademark of Standard & Poors
Corporation. Investors cannot directly invest in an index. The inception figures
are from the Portfolios commencement of operations.
Performance numbers for the Equity Portfolio are net of all portfolio operating
expenses, but do not include separate account or contract charges. If the
performance data included the effect of these charges, the returns would be
lower. Past performance is no guarantee of future results. Principal and
investment return will vary so shares may be worth more or less than their
original cost when redeemed.
3
<PAGE>
A Message From Kent Adams, Portfolio Manager of Bond Portfolio
The Bond Portfolio invests primarily in U.S. Treasury and Agency bonds and
notes, investment grade corporate bonds, and U.S. Agency-backed residential
mortgage obligations. Portfolio holdings may range in maturity from overnight
money market investments to bonds with maturities as long as 30 years. The
average maturity of the Portfolio is shortened or lengthened depending on the
outlook for interest rates. The mix of corporate bonds, U.S. Agencies and
Treasuries, and mortgage-backed securities in the Portfolio is varied depending
on the relative attractiveness of these sectors.
Approximately 28% of the Portfolio was invested in U. S. Treasury and Agency
bonds and notes at year-end 1999. The remainder of the Portfolio was allocated
to corporate bonds (31%), high quality residential mortgage securities (39%),
and short-term money market instruments (1%). A small portion of the Bond
Portfolio (less than 2%) was invested in bonds rated below investment grade at
year-end. The duration of the Portfolio was 101% of the Lehman Aggregate Bond
Indexs duration as of December 31, 1999, a slight decrease from the beginning of
the year.
Even though inflation remains very much under control, the economic environment
over the previous year was a difficult one for bonds. Despite three separate
twenty-five basis point increases in the federal funds target in 1999, the
domestic economy continues to grow at a rapid pace. In addition, significant
improvement has occurred in the growth prospects for many overseas economies.
This economic good news has been bad news for the bond market. The increase in
the ten-year Treasury yield from 4.65% at the beginning of 1999 to 6.44% at
year-end reflects investor concerns regarding the possibility of a rekindling of
long-subdued inflation. This substantial increase in interest rates resulted in
negative returns for both the Bond Portfolio and the Lehman Aggregate Bond Index
in 1999.
Success by the Federal Reserve Board in moderating economic growth combined with
continued improvement in productivity from the application of new technologies
should eventually result in a lowering of expectations for inflation and a
return to more moderate interest rates. For the time being, however, bond market
participants remain concerned and cautious.
The mortgage-backed securities sector was the best performer in the investment
grade bond market in 1999. Although corporate bonds generally outperformed
similar duration Treasuries last year, a negative return was the norm for bonds
with intermediate and longer-term maturities. After performing poorly in the
second half of 1998, non-investment grade (high yield) bonds recovered somewhat
in 1999, showing positive returns on average for the year. The worst performing
sector of the bond market last year was the long maturity Treasury sector.
Thirty-year Treasury bonds experienced negative returns of nearly 15 percent.
The Bond Portfolios overweighted position in residential mortgage securities
during the year contributed significantly to the Portfolios relative
performance. Other holdings performing well relative to Treasuries in 1999
include issues backed by Petronas (Malaysia), Korea Development Bank, and Union
Pacific Resources.
4
<PAGE>
AUL American Series Fund, Inc. Bond Portfolio
BOND SLH Aggregate
Date Year Hypothetical Hypothetical
$10,000 $10,000
investment investment
- ---------------------------------------------------------------
4/10/90 4/90 10,000 10,000
6/90 10,257 10,304
9/90 10,182 10,392
12/90 90 10,895 10,917
3/91 11,091 11,224
6/91 11,186 11,405
9/91 11,976 12,053
12/91 91 12,678 12,664
3/92 12,361 12,503
6/92 12,935 13,008
9/92 13,690 13,567
12/92 92 13,590 13,602
3/93 14,318 14,165
6/93 14,650 14,541
9/93 15,118 14,920
12/93 93 15,043 14,928
3/94 14,563 14,499
6/94 14,388 14,350
9/94 14,454 14,438
12/94 94 14,507 14,493
3/95 15,181 15,224
6/95 16,071 16,151
9/95 16,348 16,469
12/95 95 17,086 17,170
3/96 16,675 16,864
6/96 16,703 16,960
9/96 16,973 17,273
12/96 96 17,468 17,791
3/97 17,379 17,692
6/97 17,944 18,344
9/97 18,481 18,956
12/97 97 18,841 19,514
3/98 19,191 19,815
6/98 19,594 20,278
9/98 20,344 21,135
12/98 98 20,490 21,207
3/99 20,399 21,099
6/99 20,154 20,913
9/99 20,296 21,056
12/99 99 20,263 21,030
- ---------------------------------------------------------------
Average Annual Total Returns for the period ended December 31, 1999
Bond Lehman Brothers
Portfolio Aggregate Index
One Year (1.1%) (0.8%)
Five Years 6.9% 7.7%
Since Inception (4/10/90) 7.5% 8.0%
Value of a hypothetical $10,000
investment made 4/10/90 $20,263 $21,050
The charts show the Bond Portfolios total returns, which include changes in
share price and reinvestment of income and capital gains. Figures for the Lehman
Brothers Aggregate Index, an unmanaged index of government and corporate bonds,
which is a broad measure of the performance of the U.S. bond market, include
reinvestment of income and capital gains. Investors cannot directly invest in an
index. The inception figures are from the Portfolios commencement of operations.
Performance numbers for the Bond Portfolio are net of all portfolio operating
expenses, but do not include separate account or contract charges. If the
performance data included the effect of these charges, the returns would be
lower. Past performance is no guarantee of future results. Principal and
investment return will vary so shares may be worth more or less than their
original cost when redeemed.
5
<PAGE>
A Message From Kathryn Hudspeth and Kent Adams,
Portfolio Managers of Managed Portfolio
The Managed Portfolio utilizes a fully managed investment policy by allocating
assets among publicly traded common stocks, debt securities, and money market
instruments. Asset allocation decisions are based on economic factors and the
valuation of each asset class compared to historic levels.
The capital markets were volatile in 1999 in response to rising interest rates,
Federal Reserve intervention, and investors rotating among sectors frantically
searching for above average investment returns. At the beginning of the year,
large growth companies were the dominant players, similar to 1998. During the
second quarter, a dramatic shift occurred into undervalued cyclical companies
that would benefit from a global economic recovery. However, this interest
dissipated by the middle of the year as large growth companies, in particular,
technology companies, captured center stage once again. Speculative momentum
pushed the technology sector to new highs and excessive valuations by year-end.
Unfortunately, the rest of the equity market did not participate in this
frenzied advance, and was struggling just to be above water by year-end.
Even though inflation remains very much under control, the economic environment
over the previous year was a difficult one for bonds. The increase in the
ten-year Treasury yield from 4.65% at the beginning of 1999 to 6.44% at year-end
reflects investor concerns regarding the possibility of a rekindling of
long-subdued inflation. This substantial increase in interest rates resulted in
a negative return for the Lehman Aggregate Bond Index in 1999.
The Managed Portfolio continued to be overweighted in stocks. By the end of
1999, 56% of the Managed Portfolio was invested in equities, while 42% was
invested in bonds and 2% was invested in money market instruments. This can be
compared to an asset allocation of 55% stocks, 41% bonds and 4% cash equivalents
at year-end 1998.
The stocks held in the Managed Portfolio typically have a value orientation. As
of the end of the year, the Portfolio was underweighted in the technology sector
but was heavily weighted in cyclical and commodity stocks, which we believe to
be on the verge of a major earnings turnaround. The bond portion of the
Portfolio was most heavily weighted in U.S. Agency residential mortgage
securities, followed by investment grade corporate bonds, and finally, U.S.
Treasury and Agency bonds. Maturities ranged from under one-year to as long as
30 years.
Most economists believe that the current expansion will continue through the
year 2000, but that the Federal Reserve will be forced to tighten monetary
policy. It is hard to imagine that the speculative bubble which surrounds
technology stocks can continue indefinitely. If the equity market broadens due
to earnings or fundamental issues, the market could still post positive returns
in the current year, but the leadership would change. Bond investors remain
cautious in the near-term given the strength of the economy and the potential
for further tightening by the Federal Reserve Board. However, many analysts
expect bonds to benefit from the Federal Reserve Boards actions to slow economic
growth.
6
<PAGE>
AUL American Series Fund, Inc. Managed Portfolio
MANAGED S&P 500 SLH Aggregate
Date Year Hypothetical Hypothetical Hypothetical
$10,000 $10,000 $10,000
investment investment investment
- --------------------------------------------------------------------------------
4/10/90 4/90 10,000 10,000 10,000
6/90 10,238 10,540 10,304
9/90 9,936 9,092 10,392
12/90 90 10,601 9,906 10,917
3/91 11,122 11,346 11,224
6/91 11,320 11,320 11,405
9/91 11,833 11,925 12,053
12/91 91 12,375 12,925 12,664
3/92 12,285 12,598 12,503
6/92 12,615 12,838 13,008
9/92 13,010 13,243 13,567
12/92 92 13,358 13,909 13,602
3/93 14,134 14,517 14,165
6/93 14,214 14,588 14,541
9/93 14,696 14,964 14,920
12/93 93 15,092 15,311 14,928
3/94 14,835 14,731 14,499
6/94 14,543 14,793 14,350
9/94 14,993 15,516 14,438
12/94 94 14,951 15,513 14,493
3/95 15,560 17,024 15,224
6/95 16,658 18,650 16,151
9/95 17,319 20,114 16,469
12/95 95 17,811 21,325 17,170
3/96 18,043 22,470 16,864
6/96 18,515 23,479 16,960
9/96 19,068 24,204 17,273
12/96 96 19,913 26,223 17,791
3/97 20,110 26,926 17,692
6/97 22,120 31,627 18,344
9/97 23,905 33,996 18,956
12/97 97 24,083 34,972 19,514
3/98 25,689 39,850 19,815
6/98 25,871 41,165 20,278
9/98 24,162 37,069 21,135
12/98 98 26,067 44,965 21,207
3/99 26,013 47,160 21,099
6/99 27,526 50,472 20,913
9/99 26,023 47,310 21,056
12/99 99 25,874 54,364 21,030
- --------------------------------------------------------------------------------
Average Annual Total Returns for the period ended December 31,1999
Managed S&P 500 Lehman Brothers
Portfolio Aggregate Index
One Year (0.7%) 21.0% (.8%)
Five Years 11.6% 28.5% 7.7%
Since Inception (4/10/90) 10.3% 19.0% 8.0%
Value of a hypothetical $10,000
investment made 4/10/90 $25,874 $54,364 $21,030
The charts show the Managed Portfolios total returns, which include changes in
share price and reinvestment of dividends and capital gains. Figures for the S&P
500, an unmanaged index of common stocks, include reinvestment of dividends and
capital gains. S&P 500 is a registered trademark of Standard & Poors
Corporation. Figures for the Lehman Brothers Aggregate Index, an unmanaged index
of government and corporate bonds, which are broad measures of the performance
of the U.S. bond market, include reinvestment of income and capital gains.
Investors cannot directly invest in an index. The inception figures are from the
Portfolios commencement of operations.
Performance numbers for the Managed Portfolio are net of all portfolio operating
expenses, but do not include separate account or contract charges. If the
performance data included the effect of these charges, it would be lower. Past
performance is no guarantee of future results. Principal and investment return
will vary so shares may be worth more or less than their original cost when
redeemed.
7
<PAGE>
A Message From John Riazzi, Portfolio Manager
of Tactical Asset Allocation Portfolio
All of the major market indexes ended 1999 at all-time highs. Fears that rising
interest rates or that the Y2K bug would hurt the U.S. economy dissipated, as
investors focused on continuing economic prosperity with low inflation, rising
corporate productivity and profits, and recovering economies overseas. In
addition, the promising opportunities made possible by the Internet commanded
most of the markets attention. The NASDAQ Composite, a market index dominated by
high-tech giants and Internet-related issues, increased by over 80% during 1999.
Many NASDAQ stocks (in particular, the so-called dot-com stocks) were bid higher
due to pure market euphoria, with comparatively little attention paid to any
traditional notion of a stocks underlying value.
The saying goes that a rising tide lifts all boats did not apply to the market
in 1999. More than half of the companies in the S&P 500 index fell in price
during the year, with a median performance of minus 1.1%. In other words, an
equally weighted portfolio of the S&P 500 (i.e., a group chosen to represent
market leaders and financially stable operations) would have barely changed in
value (after accounting for dividends) during the bull run of 1999. Certainly,
such a huge divergence in performance has served to tempt impatient investors to
chase after the NASDAQ winners, no matter the price.
The Portfolios performance during 1999 reflected the difficulties of a value
investing philosophy in the recent market environment. Certainly trends, such as
the Internet and the globalization of the economy, have had an impact on the art
and science of investing. At the same time, the cornerstone of our long-term
investment success has been a commitment to value. We believe our equity
portfolio represents extensive research into both of these themes. In other
words, the firms we are buying are fundamentally positioned to succeed and
thrive in the new economy, yet are undervalued in a classic or relative sense,
thereby increasing the potential for capital gains.
Our Tactical Asset Allocation models bearish through much of the year actually
improved toward years end, and in order to capitalize on this relatively
optimistic outlook, we have boosted our stock allocation north of the 60%
neutral level. At years end, the fund was 64.9% invested in equities. Major
areas of emphasis include the financial services sector, particularly banking
operations, as well as providers of insurance and investment products. The
majority of stocks in the financial sector were beaten down by higher interest
rates in 1999, but the fundamental demand for financial products should grow
steadily over the longer term, driven by favorable demographics. Select consumer
and industrial names were recently added, with a preference for companies that
are market leaders, boast proven track records, and offer attractive valuations.
Meantime, a handful of blue-chip technology stocks have been maintained, giving
the portfolio additional growth at a reasonable price. As of year end, the
aggregate equity portfolio had a higher average market capitalization than the
index, with a cheaper earnings multiple and a healthier dividend yield. Such
characteristics have historically provided downside protection in times of
market instability.
In the meantime, the allocation to fixed income securities was reduced
significantly, to about 26.3% by year end. Selling bonds is intended to mute
some of the effect of short-term higher rates while we wait for interest rates
to settle out later in the year.
8
<PAGE>
AUL American Series Fund, Inc. Tactical Asset Allocation Portfolio
- --------------------------------------------------------------------------------
Tactical S & P Lehman
Date Year Asset 500 Int
Govts
- --------------------------------------------------------------------------------
07/31/95 07/95 10,000 10,000 10,000
9/95 10,218 10,442 10,150
12/95 1995 10,650 11,070 10,489
3/96 11,033 11,666 10,417
6/96 11,144 12,183 10,488
9/96 11,515 12,559 10,667
12/96 1996 12,320 13,609 10,914
3/97 12,180 13,973 10,911
6/97 13,204 16,408 11,216
9/97 14,594 17,640 11,503
12/97 1997 14,228 18,147 11,757
3/98 15,448 20,681 11,934
6/98 15,482 21,356 12,155
9/98 14,151 19,229 12,721
12/98 1998 15,254 23,333 12,753
3/99 15,214 24,494 12,718
6/99 15,867 26,214 12,694
9/99 14,682 24,572 12,822
12/99 1999 14,789 28,236 12,817
- --------------------------------------------------------------------------------
Average Annual Total Returns for the period ended December 31,1999
Tactical Asset S&P 500 Lehman Brothers
Allocation Portfolio Inter.Govt. Index
One Year (3.1%) 21.0% 0.5%
Since Inception (7/31/95) 6.3% 27.5% 5.5%
Value of a hypothetical $10,000
investment made 7/31/95 $14,789 $28,236 $12,817
The charts show the Tactical Asset Allocation Portfolios total returns, which
include changes in share price and reinvestment of dividends and capital gains.
Figures for the S&P 500, an unmanaged index of common stocks, include
reinvestment of dividends and capital gains. S&P 500 is a registered trademark
of Standard & Poors Corporation. Figures for the Lehman Brothers Intermediate
Government Bond Index, an unmanaged index of government and corporate bonds,
which is a broad measure of the performance of the U.S. bond market, include
reinvestment of income and capital gains. Investors cannot directly invest in an
index. The inception figures are from the Portfolios commencement of operations.
Performance numbers for the Tactical Asset Allocation Portfolio are net of all
portfolio operating expenses, but do not include separate account or contract
charges. If the performance data included the effect of these charges, returns
would be lower. Past performance is no guarantee of future results. Principal
and investment return will vary so shares may be worth more or less than their
original cost when redeemed.
9
<PAGE>
A Message From Kathryn Hudspeth, Kent Adams, Eric Remole and William Sterling,
Portfolio Managers of the Conservative Investor, Moderate Investor and
Aggressive Investor Portfolios (LifeStyle Portfolios)
The Lifestyle Portfolios consist of three individual portfolios that invest, in
different proportions, in three broad asset categories - equity securities,
bonds, and money market instruments. Each of the Lifestyle Portfolios is
designed to fit a different general risk profile. Investors are encouraged to
choose the appropriate Portfolio or mix of Portfolios based upon their own
risk/return profile.
The Lifestyle Portfolios offer a broadly diversified mix of financial assets
representing both domestic and international equities as well as fixed income
investments of varying maturity and quality. Investment grade bonds, high yield
bonds, domestic growth stocks, international equities, and value stocks are each
included in the asset allocations of the Lifestyle Portfolios. The risk
(volatility) of returns increases as the investor moves from the Conservative
Portfolio with its lower equity position to the Moderate and Aggressive
Portfolios with their increasing allocations to equities.
Within the equity portion of the Portfolios, the domestic growth sector, managed
by Credit Suisse Asset Management, emphasizes companies with improving earnings
expectations among Wall Street analysts combined with the stability to deliver
on those earnings expectations. The value equity sector of the Lifestyle
Portfolios, managed by American United Life, focuses on companies that are
undervalued relative to the marketplace. International equities, also managed by
Credit Suisse Asset Management, provide further diversification for the
portfolios with investments in Japan, the United Kingdom, France, the
Netherlands, Germany, and other countries throughout the world.
Equity performance in 1999 was led by the growth sector of the Portfolios while
value stocks lagged. International equities rebounded in 1999 after a tough year
in 1998 when the international markets faced crises in Russia and Southeast
Asia. The performance of the bond portion of the Lifestyle Portfolios (managed
by AUL) suffered as yields on Treasury bonds moved sharply higher.
Non-investment grade bonds and mortgage-backed securities were the best
performing sectors of the bond market last year while longer maturity Treasury
bonds experienced the greatest price declines.
The relative performance of the three Portfolios since their inception at the
end of the second quarter of 1998 reflects the different risk characteristics of
the individual portfolios. The Conservative Portfolio proved the best at
weathering the volatile markets in the second half of 1998, registering the
highest return of the three portfolios for that time period. The Aggressive
Portfolio, however, outperformed the other Lifestyle Portfolios in 1999 as
growth and international equities recovered and bonds faltered.
The allocations by sector for each Portfolio are shown on the following page.
10
<PAGE>
Conservative Moderate Aggressive
Investor Investor Investor
Domestic Growth Stocks 17% 22% 32%
Value Stocks 21% 30% 40%
International Equity Stocks 6% 11% 11%
Investment Grade Bonds 42% 27% 11%
High Yield Bonds 4% 4% 4%
Money Market Instruments 10% 6% 2%
These allocations change, subject to the limitations shown in the prospectus,
depending on market conditions.
11
<PAGE>
AUL American Series Fund, Inc. Conservative Investor Portfolio
CONSERVATIVE SLH Aggregate RUSS 3000 INDEX
Date Year Hypothetical Hypothetical Hypothetical
$10,000 $10,000 $10,000
investment investment investment
- --------------------------------------------------------------------------------
03/31/98 3/31/98 10,000 10,000 10,000
4/98 10,028 10,052 10,098
5/98 9,994 10,147 9,849
6/98 10,145 10,234 10,181
7/98 10,028 10,255 9,996
8/98 9,476 10,422 8,465
9/98 9,802 10,666 9,042
10/98 10,011 10,610 9,728
11/98 10,248 10,670 10,324
12/98 1998 10,584 10,702 10,980
- --------------------------------------------------------------------------------
1/99 10,724 10,778 11,354
2/99 10,432 10,590 10,952
3/99 10,601 10,648 11,354
4/99 10,829 10,682 11,866
5/99 10,665 10,588 11,640
6/99 10,863 10,554 12,228
7/99 10,718 10,510 11,858
8/99 10,650 10,504 11,722
9/99 10,614 10,626 11,422
10/99 10,779 10,666 12,138
11/99 10,871 10,665 12,478
12/99 1999 11,196 10,613 13,274
- --------------------------------------------------------------------------------
Average Annual Total Returns fo the period ended December 31,1999
Conservative Russell 3000 Lehman
Investor Aggregate
Portfolio Bond Index
One Year 5.8% 20.9% (0.8%)
Since Inception (3/31/98) 6.7% 17.6% 3.5%
Value of a hypothetical $10,000
investment made 3/31/98 $11,196 $13,274 $10,613
The charts show the Conservative Investor Portfolios total returns, which
include changes in share price and reinvestment of dividends and capital gains.
Figures for the Russell 3000 Index, a performance measurement of the 3,000
largest publicly traded U.S. companies based on total market capitalization,
include reinvestment of income and capital gains. Figures for the Lehman
Aggregate Bond Index, an unmanaged index of government and corporate bonds,
which is a broad measure of the performance of the U.S. bond market, include
reinvestment of income and capital gains. Investors cannot directly invest in an
index. The inception figures are from the Portfolios commencement of operations.
Performance numbers for the Conservative Investor Portfolio are net of all
portfolio operating expenses, but do not include separate account or contract
charges. If the performance data included the effect of these charges, returns
would be lower. Past performance is no guarantee of future results. Principal
and investment return will vary so shares may be worth more or less than their
original cost when redeemed.
12
<PAGE>
AUL American Series Fund, Inc. Moderate Investor Portfolio
MODERATE SLH Aggregate RUSS 3000 INDEX
Date Year Hypothetical Hypothetical Hypothetical
$10,000 $10,000 $10,000
investment investment investment
- --------------------------------------------------------------------------------
03/31/98 1/98 10,000 10,000 10,000
4/98 10,028 10,052 10,098
5/98 9,956 10,147 9,849
6/98 10,136 10,234 10,181
7/98 9,957 10,255 9,996
8/98 9,115 10,422 8,465
9/98 9,465 10,666 9,042
10/98 9,835 10,610 9,728
11/98 10,134 10,670 10,324
12/98 1998 10,509 10,702 10,980
- --------------------------------------------------------------------------------
1/99 10,655 10,778 11,354
2/99 10,302 10,590 10,952
3/99 10,504 10,648 11,354
4/99 10,828 10,682 11,866
5/99 10,628 10,588 11,640
6/99 10,936 10,554 12,228
7/99 10,736 10,510 11,858
8/99 10,640 10,504 11,722
9/99 10,541 10,626 11,422
10/99 10,763 10,666 12,138
11/99 10,903 10,665 12,478
12/99 1999 11,374 10,613 13,274
- --------------------------------------------------------------------------------
Average Annual Total Returns for the period ended December 31, 1999
Moderate Russell 3000 Lehman
Investor Aggregate
Portfolio Bond Index
One Year 8.2% 20.9% (0.8%)
Since Inception (3/31/98) 7.6% 17.6% 3.5%
Value of a hypothetical $10,000
investment made 3/31/98 $11,374 $13,272 $10,613
The charts show the Moderate Investor Portfolios total returns, which include
changes in share price and reinvestment of dividends and capital gains. Figures
for the Russell 3000 Index, a performance measurement of the 3,000 largest
publicly traded U.S. companies based on total market capitalization, include
reinvestment of income and capital gains. Figures for the Lehman Aggregate Bond
Index, an unmanaged index of government and corporate bonds, which is a broad
measure of the performance of the U.S. bond market, include reinvestment of
income and capital gains. Investors cannot directly invest in an index. The
inception figures are from the Portfolios commencement of operations.
Performance numbers for the Moderate Investor Portfolio are net of all portfolio
operating expenses, but do not include separate account or contract charges. If
the performance data included the effect of these charges, returns would be
lower. Past performance is no guarantee of future results. Principal and
investment return will vary so shares may be worth more or less than their
original cost when redeemed.
13
<PAGE>
AUL American Series Fund, Inc. Aggressive Investor Portfolio
AGGRESSIVE SLH Aggregate RUSS 3000 INDEX
Date Year Hypothetical Hypothetical Hypothetical
$10,000 $10,000 $10,000
investment investment investment
- --------------------------------------------------------------------------------
03/31/98 3/31/98 10,000 10,000 10,000
4/98 10,037 10,052 10,098
5/98 9,902 10,147 9,849
6/98 10,146 10,234 10,181
7/98 9,892 10,255 9,996
8/98 8,702 10,422 8,465
9/98 9,136 10,666 9,042
10/98 9,620 10,610 9,728
11/98 9,994 10,670 10,324
12/98 1998 10,496 10,702 10,980
- --------------------------------------------------------------------------------
1/99 10,695 10,778 11,354
2/99 10,247 10,590 10,952
3/99 10,544 10,648 11,354
4/99 10,952 10,682 11,866
5/99 10,717 10,588 11,640
6/99 11,165 10,554 12,228
7/99 10,889 10,510 11,858
8/99 10,773 10,504 11,722
9/99 10,592 10,626 11,422
10/99 10,885 10,666 12,138
11/99 11,075 10,665 12,478
12/99 1999 11,720 10,613 13,274
- --------------------------------------------------------------------------------
Average Annual Total Returns for the period ended December 31,1999
Aggressive Russell 3000 Lehman
Investor Aggregate
Portfolio Bond Index
One Year 11.7% 20.9% (0.8%)
Since Inception (3/31/98) 9.5% 17.6% 3.5%
Value of a hypothetical $10,000
investment made 3/31/98 $11,720 $13,274 $10,613
The charts show the Aggressive Investor Portfolios total returns, which include
changes in share price and reinvestment of dividends and capital gains. Figures
for the Russell 3000 Index, a performance measurement of the 3,000 largest
publicly traded U.S. companies based on total market capitalization, include
reinvestment of income and capital gains. Figures for the Lehman Aggregate Bond
Index, an unmanaged index of government and corporate bonds, which is a broad
measure of the performance of the U.S. bond market, include reinvestment of
income and capital gains. Investors cannot directly invest in an index. The
inception figures are from the Portfolios commencement of operations.
Performance numbers for the Aggressive Investor Portfolio are net of all
portfolio operating expenses, but do not include separate account or contract
charges. If the performance data included the effect of these charges, returns
would be lower. Past performance is no guarantee of future results. Principal
and investment return will vary so shares may be worth more or less than their
original cost when redeemed.
14
<PAGE>
Report of Independent Accountants
The Shareholders and Board of Directors
AUL American Series Fund, Inc.
In our opinion, the accompanying statements of net assets, including the
schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Equity Portfolio, Money Market
Portfolio, Bond Portfolio, Managed Portfolio, Tactical Asset Allocation
Portfolio, Conservative Investor Portfolio, Moderate Investor Portfolio, and
Aggressive Investor Portfolio (constituting the AUL American Series Fund, Inc.,
hereafter referred to as the Fund) at December 31, 1999, the results of each of
their operations, the changes in each of their net assets and the financial
highlights for each of the periods indicated, in conformity with accounting
principles generally accepted in the United States. These financial statements
and financial highlights (hereafter referred to as financial statements) are the
responsibility of the Funds management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of securities at December
31, 1999 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
/s/ PricewaterhouseCoopers L.L.P.
Indianapolis, Indiana
February 7, 2000
15
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
STATETMENTS OF NET ASSETS
December 31, 1999
Portfolio
Equity Money Market Bond Managed Tactical Asset
<S> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 86,346,385 $ 126,677,156 $ 49,226,207 $ 67,861,197 $ 5,220,299
(cost: $84,448,350, $126,677,156,
$51,242,278, $67,750,384,
and $5,052,359, respectively)
Capital stock sold 18,254 0 54,985 0 0
Receivable for investments sold 2,219,058 0 0 717,710 0
Dividends and interest receivable 122,777 566,933 578,733 379,597 34,807
Other assets 0 0 0 0 2,212
Deferred organization costs 0 0 0 0 945
Total assets 88,706,474 127,244,089 49,859,925 68,958,504 5,258,263
Liabilities:
Capital stock reacquired 0 643,422 0 13,889 35
Payable for investments purchased 0 0 0 74,392 94,619
Accrued investment advisory fees 37,375 39,510 21,524 28,977 4,033
Accrued expenses 49,964 29,341 10,423 24,846 3,259
Organization costs payable 0 0 0 0 1,610
Total liabilities 87,339 712,273 31,947 142,104 103,556
Net Assets $ 88,619,135 $ 126,531,816 $ 49,827,978 $ 8,816,400 $ 5,154,707
Shares outstanding 5,518,654 126,531,816 4,940,799 5,370,417 425,157
Net Asset Value per share $ 16.06 $ 1.00 $ 10.09 $ 12.81 $ 12.12
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
STATEMENTS OF NET ASSETS (continued)
December 31, 1999
LifeStyle Portfolios
Conservative Moderate Aggressive
Investor Investor Investor
<S> <C> <C> <C>
Assets:
Investments at value $ 6,402,033 $ 7,693,097 $ 7,810,329
(cost: $6,382,876,
$7,475,291, and
$7,397,803, respectively)
Capital stock sold 524 0 1,920
Receivable for investments sold 71,319 106,602 104,206
Dividends and interest receivable 37,822 33,372 17,387
Other assets 12,218 2,727 5,437
Deferred organization costs 5,078 5,078 5,078
Total assets 6,528,994 7,840,876 7,944,357
Liabilities:
Capital stock reacquired 0 824 0
Payable for investments purchased 0 2,843 21,320
Accrued investment advisory fees 4,005 4,686 4,698
Accrued expenses 12,423 14,629 10,808
Organization costs payable 5,925 5,925 5,925
Total liabilities 22,353 28,907 42,751
Net Assets $ 6,506,641 $ 7,811,969 $ 7,901,606
Shares outstanding 641,290 744,762 726,947
Net Asset Value per share $ 10.15 $ 10.49 $ 10.87
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
STATEMENTS OF OPERATIONS
For the year ended December 31, 1999
Portfolio
Equity Money Market Bond Managed Tactical Asset
<S> <C> <C> <C> <C> <C>
Investment Income:
Income:
Dividends (net of foreign $ 1,749,596 $ 0 $ 0 $ 801,211 $ 67,261
taxes withheld of $12,346, $0,
$0, $5,533, and $1,124,
respectively)
Interest 289,803 5,138,878 3,223,489 2,045,526 165,905
2,039,399 5,138,878 3,223,489 2,846,737 233,166
Expenses:
Investment advisory fee 470,603 428,207 255,839 367,232 49,481
Custodian and service agent fee 82,353 82,227 45,661 64,595 9,178
Professional fees 5,370 5,557 2,991 3,349 512
Amortization of deferred
organization costs 0 0 0 0 1,610
Director fees 6,314 5,481 3,148 4,808 94
Printing 19,155 20,915 9,371 13,531 434
Other 5,150 3,788 1,677 3,568 70
Total expenses before
reduction 588,945 546,175 318,687 457,083 61,379
Expense reduction 0 0 0 0 293
588,945 546,175 318,687 457,083 61,086
Net investment income 1,450,454 4,592,703 2,904,802 2,389,654 172,080
Gain (Loss) on Investments and
Foreign Currency:
Net realized gain (loss)
on investments 16,133,015 0 (526,053) 7,330,258 (119,972)
Net realized loss on
foreign currency transactions 0 0 0 0 0
Net change in unrealized
appreciation on investments (18,190,485) 0 (2,959,889) (10,171,248) (209,826)
Translation of assets and
liabilities in foreign currencies 0 0 0 0 0
Net gain (loss) (2,057,470) 0 (3,485,942) (2,840,990) (329,798)
Net Increase (Decrease) in
Net Assets from Operations $ (607,016) $ 4,592,703 $ (581,140) $ (451,336)$ (157,718)
</TABLE>
The accompanying notes are an integral part of the financial statement.
18
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
STATEMENTS OF OPERATIONS (continued)
For the year ended December 31, 1999
LifeStyle Portfolios
Conservative Moderate Aggressive
Investor Investor Investor
<S> <C> <C> <C>
Investment Income:
Income:
Dividends (net of foreign $ 36,383 $ 64,099 $ 79,553
taxes withheld of $549, $1,103,
and $1,214,
respectively)
Interest 235,659 181,875 97,545
272,042 245,974 177,098
Expenses:
Investment advisory fee 45,498 51,681 50,509
Custodian and service agent fee 68,199 67,854 67,932
Professional fees 240 266 258
Amortization of deferred
organization costs 1,562 1,562 1,562
Director fees 213 227 227
Printing 0 0 0
Other 68 74 72
Total expenses before
reduction 115,780 121,664 120,560
Expense reduction 53,879 47,834 51,581
61,901 73,830 68,979
Net investment income 210,141 172,144 108,119
Gain (Loss) on Investments and
Foreign Currency:
Net realized gain (loss)
on investments 302,479 438,012 611,644
Net realized loss on
foreign currency transactions (56) (121) (121)
Net change in unrealized
appreciation on investments (141,649) (2,225) 115,559
Translation of assets and
liabilities in foreign currencies 0 0 0
Net gain (loss) 160,774 435,666 727,082
Net Increase (Decrease) in
Net Assets from Operations $ 370,915 $ 607,810 $ 835,201
</TABLE>
The accompanying notes are an integral part of the financial statement.
19
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
STATEMENTS OF CHANGES IN NET ASSETS
Portfolio
Equity Money Market
<S> <C> <C> <C> <C>
Year ended Year ended Year ended Year ended
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1999 Dec. 31, 1998
Increase in Net Assets from Operations:
Net investment income $ 1,450,454 $ 1,439,875 $ 4,592,703 $ 3,220,950
Net realized gain (loss) 16,133,015 10,566,405 0 0
Net change in unrealized
appreciation (18,190,485) (5,994,103) 0 0
Net increase (Decrease) in Net Assets
from Operations (607,016) 6,012,177 4,592,703 3,220,950
Dividends and Distributions:
From net investment income (1,450,241) (1,440,136) (4,592,703) (3,220,950)
From net realized gain (16,545,094) (8,225,847) 0 0
Decrease (17,995,335) (9,665,983) (4,592,703) (3,220,950)
Shareholder Transactions:
Proceeds from shares sold 14,631,379 29,215,767 158,840,614 145,189,479
Reinvested distributions 16,749,821 8,968,761 4,602,804 3,210,840
Cost of shares redeemed (19,645,267) (19,321,125) (118,966,855) (122,102,008)
Increase (Decrease) 11,735,933 18,863,403 44,476,563 26,298,311
Net increase (decrease) (6,866,418) 15,209,597 44,476,563 26,298,311
Net Assets at beginning of year 95,485,553 80,275,956 82,055,253 55,756,942
Net Assets at end of year $ 88,619,135 $ 95,485,553 $ 126,531,816 $ 82,055,253
Shares sold 703,472 1,345,932 158,840,614 145,189,479
Reinvested distributions 1,052,984 447,614 4,602,804 3,210,840
Shares redeemed (947,933) (899,821) (118,966,855) (122,102,008)
Net Increase (Decrease) 808,523 893,725 44,476,563 26,298,311
Shares outstanding at beginning of year 4,710,131 3,816,406 82,055,253 55,756,942
Shares outstanding at end of year 5,518,654 4,710,131 126,531,816 82,055,253
</TABLE>
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Portfolio
Bond Managed
<S> <C> <C> <C> <C>
Year ended Year ended Year ended Year ended
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1999 Dec. 31, 1998
Increase in Net Assets from Operations:
Net investment income $ 2,904,802 $ 2,298,641 $ 2,389,654 $ 2,216,931
Net realized gain (loss) (526,053) 895,159 7,330,258 5,358,469
Net change in unrealized
appreciation (2,959,889) 327,099 (10,171,248) (2,340,871)
Net increase (Decrease) in Net Assets
from Operations (581,140) 3,520,899 (451,336) 5,234,529
Dividends and Distributions:
From net investment income (2,916,994) (2,291,894) (2,419,622) (2,190,819)
From net realized gain 0 (816,901) (7,660,616) (4,289,275)
Decrease (2,916,994) (3,108,795) (10,080,238) (6,480,094)
Shareholder Transactions:
Proceeds from shares sold 20,853,214 43,342,207 8,648,452 21,066,727
Reinvested distributions 2,916,994 3,108,795 10,080,238 6,480,094
Cost of shares redeemed (20,533,807) (31,491,315) (12,492,676) (13,666,306)
Increase (Decrease) 3,236,401 14,959,687 6,236,014 13,880,515
Net increase (decrease) (261,733) 15,371,791 (4,295,560) 12,634,950
Net Assets at beginning of year 50,089,711 34,717,920 73,111,960 60,477,010
Net Assets at end of year $ 49,827,978 $ 50,089,711 $ 68,816,400 $ 73,111,960
Shares sold 1,934,109 3,953,961 564,421 1,328,874
Reinvested distributions 288,783 286,109 790,359 428,239
Shares redeemed (1,907,042) (2,867,165) (817,303) (869,396)
Net Increase (Decrease) 315,850 1,372,905 537,477 887,717
Shares outstanding at beginning of year 4,624,949 3,252,044 4,832,940 3,945,223
Shares outstanding at end of year 4,940,799 4,624,949 5,370,417 4,832,940
</TABLE>
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Portfolio
Tactical Asset Conservative Investor
<S> <C> <C> <C> <C>
March 31, 1998
Year ended Year ended Year ended (commencement)
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1999 Dec. 31, 1998
Increase in Net Assets from Operations:
Net investment income $ 172,080 $ 151,146 $ 210,141 $ 118,173
Net realized gain (loss) (119,972) 160,641 302,423 93,809
Net change in unrealized
appreciation (209,826) 14,520 (141,649) 160,806
Net increase (Decrease) in Net Assets
from Operations (157,718) 326,307 370,915 372,788
Dividends and Distributions:
From net investment income (171,580) (151,092) (210,871) (117,427)
From net realized gain 0 (38,730) (260,746) (37,694)
Decrease (171,580) (189,822) (471,617) (155,121)
Shareholder Transactions:
Proceeds from shares sold 484,093 2,415,625 813,634 6,102,927
Reinvested distributions 130,420 149,415 98,034 16,586
Cost of shares redeemed (1,599,397) (684,871) (585,566) (55,939)
Increase (Decrease) (984,884) 1,880,169 326,102 6,063,574
Net increase (decrease) (1,314,182) 2,016,654 225,400 6,281,241
Net Assets at beginning of year 6,468,889 4,452,235 6,281,241 0
Net Assets at end of year $ 5,154,707 $ 6,468,889 $ 6,506,641 $ 6,281,241
Shares sold 37,148 184,743 78,005 614,081
Reinvested distributions 10,783 11,650 9,679 1,631
Shares redeemed (122,986) (54,078) (56,352) (5,754)
Net Increase (Decrease) (75,055) 142,315 31,332 609,958
Shares outstanding at beginning of year 500,212 357,897 609,958 0
Shares outstanding at end of year 425,157 500,212 641,290 609,958
</TABLE>
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Portfolio
Moderate Investor Aggressive Investor
<S> <C> <C> <C> <C>
March 31, 1998 March 31, 1998
Year ended (commencement) Year ended (commencement)
Dec. 31, 1999 to Dec. 31, 1998 Dec. 31, 1999 to Dec. 31, 1998
Increase in Net Assets from Operations:
Net investment income $ 172,144 $ 89,061 $ 108,119 $ 50,317
Net realized gain (loss) 437,891 73,777 611,523 79,091
Net change in unrealized
appreciation (2,225) 220,030 115,559 296,966
Net increase (Decrease) in Net Assets
from Operations 607,810 382,868 835,201 426,374
Dividends and Distributions:
From net investment income (172,903) (88,193) (108,804) (49,549)
From net realized gain (322,282) (22,874) (395,749) (22,684)
Decrease (495,185) (111,067) (504,553) (72,233)
Shareholder Transactions:
Proceeds from shares sold 1,188,164 6,611,350 1,333,348 6,428,191
Reinvested distributions 155,723 17,784 150,301 11,097
Cost of shares redeemed (448,230) (97,248) (593,446) (112,674)
Increase (Decrease) 895,657 6,531,886 890,203 6,326,614
Net increase (decrease) 1,008,282 6,803,687 1,220,851 6,680,755
Net Assets at beginning of year 6,803,687 0 6,680,755 0
Net Assets at end of year $ 7,811,969 $ 6,803,687 $ 7,901,606 $ 6,680,755
Shares sold 113,195 667,640 124,928 654,923
Reinvested distributions 14,896 1,777 13,888 1,097
Shares redeemed (42,721) (10,025) (56,149) (11,740)
Net Increase (Decrease) 85,370 659,392 82,667 644,280
Shares outstanding at beginning of year 659,392 0 644,280 0
Shares outstanding at end of year 744,762 659,392 726,947 644,280
</TABLE>
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
EQUITY PORTFOLIO
December 31, 1999
Market
Description Shares Value
Common Stock (97.5%)
Aerospace (3.4%)
Boeing Co. 21,000 $ 872,813
Precision Castparts Corp. 78,300 2,055,375
2,928,188
Automotive & Auto Parts (10.5%)
Bandag, Inc. 77,700 1,942,500
Carlisle Companies, Inc. 66,400 2,390,400
Ford Motor Co. 52,900 2,826,843
TBC Corp.* 301,800 1,886,250
9,045,993
Banks & Financial (10.9%)
Associates First Capital Corp. 57,024 1,564,596
Bank One Corp. 44,263 1,419,182
Citigroup, Inc. 42,000 2,333,624
Ohio Casualty Corp. 134,600 2,162,013
Washington Mutual, Inc. 75,085 1,952,210
9,431,625
Broadcasting & Publishing (3.6%)
Chris-Craft Industries, Inc.* 30,848 2,224,912
Meredith Corp. 22,600 942,138
3,167,050
Building (4.1%)
Fleetwood Enterprises, Inc. 102,300 2,109,938
Huttig Building Products, Inc. 11,088 54,747
Toll Brothers, Inc. 73,200 1,363,350
3,528,035
Computer Hardware & Software (4.2%)
Autodesk, Inc. 78,100 2,635,875
International Business
Machines Corp. 9,200 993,600
3,629,475
Diversified Manufacturing (2.7%)
Crane Co. 49,900 991,763
Trinity Industries 47,200 1,342,250
2,334,013
Furniture & Apparel (14.0%)
Hillenbrand Industries, Inc. 52,500 1,663,594
Kellwood Co. 93,000 1,807,688
Kimball International 82,800 1,366,200
La-Z-Boy Chair Co. 151,200 2,542,050
Liz Claiborne, Inc. 82,600 3,107,824
Reebok International* 198,200 1,622,763
12,110,119
Health Care (1.5%)
Acuson Corp.* 84,200 $ 1,057,763
McKesson HBOC, Inc. 9,700 218,856
1,276,619
Machinery (3.0%)
Baldor Electric Co. 140,980 2,555,263
2,555,263
Metals & Mining (13.2%)
AK Steel Holding Corp. 127,000 2,397,124
ALCOA, Inc. 44,100 3,660,300
Cleveland-Cliffs, Inc. 55,100 1,714,988
Oregon Steel Mills, Inc. 114,800 911,225
Phelps Dodge Corp. 40,400 2,711,850
11,395,487
Oil & Oil Services (9.8%)
Royal Dutch Petroleum 45,600 2,755,950
Tidewater, Inc. 87,700 3,157,200
Valero Energy Corp. 128,700 2,557,913
8,471,063
Retail (5.3%)
Gymboree Corp.* 155,700 875,813
Lands End, Inc.* 30,800 1,070,300
Longs Drug Stores Corp. 100,700 2,599,318
4,545,431
Transportation (4.7%)
Alexander & Baldwin, Inc. 103,300 2,356,531
Norfolk Southern Corp. 83,400 1,709,700
4,066,231
Miscellaneous (6.6%)
Kelly Services, Inc. 81,000 2,035,125
Michael Foods, Inc. 88,900 2,189,163
P G & E Corp. 71,794 1,471,777
5,696,065
Total common stock (cost: $82,282,622) 84,180,657
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
EQUITY PORTFOLIO (continued)
December 31, 1999
<S> <C> <C>
Market
Description Shares Value
Money Market Mutual Funds (0.5%)
Federated Investors Prime Obligation 426,287 $ 426,287
Total money market mutual funds (cost: $426,287) 426,287
</TABLE>
<TABLE>
<CAPTION>
Interest Maturity Principal
Description Rate Date Amount
<S> <C> <C> <C> <C>
Short-Term Notes (1.7%)
General Electric Capital Corp. 5.83% 01/18/00 $ 1,500,000 1,495,870
Total short-term notes (cost: $1,495,870) 1,495,870
Cash and Cash Equivalents (0.3%)
BONY Cash Reserve 243,571
Total cash and cash equivalents (cost: $243,571) 243,571
Total Investments (cost: $84,448,350) $ 86,346,385
</TABLE>
All investments are in United States enterprises.
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MONEY MARKET PORTFOLIO
December 31, 1999
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Short-term Notes (94.1%)
U.S. Government & Agency Obligations (42.3%)
Federal Home Loan Bank Discount Notes 5.577% 01/31/00 $ 9,600,000 $ 9,556,000
Federal Home Loan Bank Discount Notes 5.820% 03/08/00 5,000,000 4,948,260
Federal Home Loan Mortgage Corp. Discount Notes 5.833% 03/21/00 3,000,000 2,961,667
Federal Home Loan Mortgage Corp. Discount Notes 5.700% 01/10/00 5,500,000 5,492,438
Federal Home Loan Mortgage Corp. Discount Notes 5.549% 01/13/00 4,000,000 3,992,600
Federal Home Loan Mortgage Corp. Discount Notes 5.535% 01/14/00 5,000,000 4,990,160
Federal Home Loan Mortgage Corp. Discount Notes 5.502% 02/04/00 4,100,000 4,078,974
Federal National Mortgage Association Discount Notes 5.630% 03/02/00 5,300,000 5,250,158
Federal National Mortgage Association Discount Notes 5.556% 02/17/00 3,200,000 3,177,106
Federal National Mortgage Association Discount Notes 5.501% 02/03/00 4,000,000 3,980,090
Federal National Mortgage Association Discount Notes 5.544% 01/21/00 5,200,000 5,184,197
53,611,650
Corporate Obligations (51.8%)
Agricultural & Constructional Machinery (3.9%)
John Deere Capital Corp. 5.700% 02/01/00 3,600,000 3,600,000
John Deere Capital Corp. 5.600% 02/07/00 1,400,000 1,400,000
5,000,000
Automotive (8.8%)
Ford Motor Credit Corp. 5.780% 01/06/00 1,000,000 1,000,000
Ford Motor Credit Corp. 5.650% 03/16/00 2,000,000 2,000,000
Ford Motor Credit Corp. 5.600% 02/02/00 900,000 900,000
Ford Motor Credit Corp. 5.590% 03/30/00 1,000,000 1,000,000
Ford Motor Credit Corp. 5.300% 01/05/00 1,200,000 1,200,000
General Motors Acceptance Corp. 5.990% 01/18/00 1,000,000 1,000,000
General Motors Acceptance Corp. 5.990% 01/19/00 2,000,000 2,000,000
General Motors Acceptance Corp. 5.900% 02/29/00 2,000,000 2,000,000
11,100,000
Business Finance (8.4%)
CIT Group Holdings 5.850% 01/25/00 1,900,000 1,900,000
CIT Group Holdings 5.850% 03/03/00 1,600,000 1,600,000
CIT Group Holdings 5.800% 03/17/00 1,000,000 1,000,000
General Electric Capital Services 6.000% 01/19/00 2,800,000 2,800,000
General Electric Capital Corp. 6.010% 01/25/00 2,300,000 2,300,000
General Electric Capital Corp. 5.000% 03/30/00 1,000,000 1,000,000
10,600,000
Consumer Finance (17.5%)
American Express Credit Corp. 5.900% 03/15/00 1,800,000 1,800,000
American Express Credit Corp. 5.800% 03/13/00 1,000,000 1,000,000
American Express Credit Corp. 5.650% 02/14/00 800,000 800,000
American Express Credit Corp. 5.600% 02/16/00 2,000,000 2,000,000
American General Finance 5.990% 01/20/00 3,100,000 3,100,000
American General Finance 5.960% 01/31/00 2,000,000 2,000,000
American General Finance 5.250% 03/30/00 1,000,000 1,000,000
Associates Corporation of North America 6.000% 03/14/00 1,400,000 1,400,000
</TABLE>
(continued on next page)
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MONEY MARKET PORTFOLIO
December 31, 1999
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Short-Term Notes (94.1%) (continued)
Consumer Finance (17.5%) (continued)
Associates Corporation of North America 5.900% 03/13/00 $ 800,000 $ 800,000
Associates Corporation of North America 5.900% 02/23/00 1,000,000 1,000,000
Associates First Capital Corp. 5.730% 02/07/00 1,300,000 1,300,000
Associates First Capital Corp. 5.680% 02/10/00 1,000,000 1,000,000
Household Finance Corp. 5.950% 01/19/00 1,500,000 1,500,000
Household Finance Corp. 5.900% 01/18/00 2,700,000 2,700,000
Household Finance Corp. 5.860% 02/24/00 800,000 800,000
22,200,000
Information Technology (4.7%)
International Business Machines Credit Corp. 5.910% 01/20/00 3,000,000 3,000,000
International Business Machines Credit Corp. 5.800% 03/08/00 1,900,000 1,900,000
International Business Machines Corp. 5.750% 03/24/00 1,000,000 1,000,000
5,900,000
Insurance (4.6%)
Prudential Financial Corp. 5.900% 01/10/00 3,100,000 3,100,000
Prudential Financial Corp. 5.650% 03/27/00 1,200,000 1,200,000
Prudential Financial Corp. 5.650% 03/17/00 1,500,000 1,500,000
5,800,000
Oil & Oil Services (3.9%)
Texaco, Inc. 5.900% 01/12/00 2,900,000 2,900,000
Texaco, Inc. 5.610% 03/13/00 2,100,000 2,100,000
5,000,000
Total short-term notes (cost: $119,211,650) 119,211,650
Shares
Money Market Mutual Funds (5.2%)
Dreyfus Masternote Account 3,392,040 3,392,040
Federated Investors Prime Obligation 3,135,531 3,135,531
Total money market mutual funds (cost: $6,527,571) 6,527,571
Cash and Cash Equivalents (0.7%)
BONY Cash Reserve 937,935
Total cash and cash equivalents (cost: $937,935) 937,935
Total Investments (cost: $126,677,156) $126,677,156
</TABLE>
All investments are in United States enterprises.
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
BOND PORTFOLIO
December 31, 1999
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-term Notes and Bonds (99.1%)
U.S. Government & Agency Obligations (28.1%)
Federal National Mortgage Association MTN 5.750% 04/15/03 $ 2,800,000 $ 2,719,500
Federal National Mortgage Association MTN 5.625% 05/14/04 2,100,000 2,006,802
U.S. Treasury Inflation Indexed Bonds 3.375% 01/15/07 1,363,713 1,284,877
U.S. Treasury Bonds 8.000% 11/15/21 1,800,000 2,042,712
U.S. Treasury Notes 7.250% 05/15/16 2,875,000 3,005,266
U.S. Treasury Notes 7.250% 05/15/04 200,000 206,032
U.S. Treasury Notes 6.250% 02/15/03 500,000 498,515
U.S. Treasury Notes 6.250% 04/30/01 550,000 550,429
U.S. Treasury Notes 6.250% 02/28/02 1,300,000 1,299,597
U.S. Treasury Notes 6.125% 08/15/07 200,000 195,000
13,808,730
Mortgage-Backed and Asset-Backed Securities (39.6%)
California Infrastructure SCE-1 1997-001-A4 6.220% 03/25/04 400,000 395,248
Federal National Mortgage Association CMO 1991-G46-G 7.500% 12/25/09 600,000 592,122
Federal Home Loan Mortgage Corp. Gold Pool #C17374 6.000% 11/01/28 474,220 434,058
Federal Home Loan Mortgage Corp. Gold Pool #C17991 6.000% 11/01/28 192,494 176,192
Federal Home Loan Mortgage Corp. Gold Pool #C20918 6.000% 01/01/29 755,844 691,831
Federal Home Loan Mortgage Corp. Gold Pool #C21896 6.000% 02/01/29 999,350 914,715
Federal Home Loan Mortgage Corp. Gold Pool #C30716 6.500% 09/01/29 997,932 940,860
Federal Home Loan Mortgage Corp. Gold Pool #E00543 6.000% 04/01/13 206,305 195,860
Federal Home Loan Mortgage Corp. Gold Pool #E71048 6.000% 07/01/13 33,082 31,407
Federal Home Loan Mortgage Corp. Gold Pool #E72468 5.500% 10/01/13 670,984 622,546
Federal Home Loan Mortgage Corp. Gold Pool #E77962 6.500% 07/01/14 1,177,662 1,142,331
Federal Home Loan Mortgage Corp. Gold Pool #G10817 6.000% 06/01/13 609,949 579,067
Federal Home Loan Mortgage Corp. Pool #C14364 6.500% 09/01/28 661,663 623,823
Federal Home Loan Mortgage Corp. Pool #C14872 6.500% 09/01/28 161,190 151,972
Federal Home Loan Mortgage Corp. Pool #C21571 6.000% 02/01/29 399,162 365,357
Federal Home Loan Mortgage Corp. Pool #E00565 6.000% 08/01/13 451,378 428,525
Federal Home Loan Mortgage Corp.
Series 2075 Class PE CMO 6.500% 04/15/21 400,000 391,748
GNMA Pool #399083 7.000% 01/15/27 2,087,174 2,017,378
GNMA Pool #415539 8.000% 07/15/27 177,230 179,002
GNMA Pool #416402 7.500% 07/15/26 17,895 17,710
GNMA Pool #424739 7.500% 05/15/26 321,294 317,982
GNMA Pool #425039 7.500% 05/15/26 26,201 25,931
GNMA Pool #436282 6.500% 03/15/28 307,228 288,312
GNMA Pool #443216 8.000% 07/15/27 410,064 414,164
GNMA Pool #452827 7.500% 02/15/28 296,333 293,278
GNMA Pool #456941 6.500% 06/15/28 527,944 495,439
GNMA Pool #426142 7.000% 05/15/26 178,581 172,888
GNMA Pool #462829 6.500% 07/15/28 397,515 373,040
GNMA Pool #463145 6.500% 04/15/28 991,622 930,568
GNMA Pool #465364 6.500% 08/15/28 477,576 448,172
GNMA Pool #468723 6.500% 02/15/28 339,480 318,579
GNMA Pool #474638 6.500% 08/15/28 380,201 356,792
GNMA Pool #480714 6.000% 11/15/28 312,990 284,623
GNMA Pool #482825 6.000% 11/15/28 535,466 486,936
</TABLE>
(continued on next page)
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
BOND PORTFOLIO (continued)
December 31, 1999
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-term Notes and Bonds (99.1%) (continued)
Mortgage-Backed and Asset-Backed Securities (39.6%) (continued)
GNMA Pool #492362 6.000% 10/15/28 $ 260,768 $ 237,134
GNMA Pool #502756 7.000% 08/15/29 697,525 673,544
GNMA Pool #519095 7.500% 12/15/29 1,000,000 988,750
GNMA Pool #521584 7.500% 11/15/29 1,498,486 1,481,627
19,479,511
Corporate Obligations (31.4%)
Aerospace & Defense (3.2%)
Lockheed Martin Corp. 8.500% 12/01/29 850,000 852,975
Raytheon Co. Notes 6.150% 11/01/08 800,000 710,840
1,563,815
Banking (1.8%)
Korea Development Bank Notes 7.375% 09/17/04 500,000 491,494
PNC Funding Corp. Notes 6.875% 03/01/03 400,000 394,472
885,966
Chemicals (4.3%)
Dow Chemical 7.375% 11/01/29 500,000 478,060
EI Dupont Nemour 6.875% 10/15/09 500,000 484,285
Equistar Chemicals LP 8.750% 02/15/09 600,000 592,171
ICI Wilmington Notes 6.750% 09/15/02 600,000 588,216
2,142,732
Consumer Non-Durables (0.7%)
Anheuser-Busch Cos. Inc. Debentures 6.750% 12/15/27 400,000 359,384
359,384
Consumer Services (1.4%)
Service Corp. International 6.875% 10/01/07 900,000 666,128
666,128
Electric Utility (2.4%)
Hydro-Quebec Debenture 8.050% 07/07/24 400,000 422,456
Public Service New Mexico 7.100% 08/01/05 350,000 336,921
Texas-New Mexico Power 6.250% 01/15/09 500,000 421,985
1,181,362
Energy (1.5%)
Petroliam Nasional Berhad Notes 7.125% 10/18/06 500,000 480,111
Union Pacific Resources Debentures 7.050% 05/15/18 300,000 267,537
747,648
</TABLE>
The accompanying notes are an integral part of the financial statements.
29
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
BOND PORTFOLIO (continued)
December 31, 1999
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-term Notes and Bonds (99.1%) (continued)
Corporate Obligations (31.4%) (continued)
Finance Company (7.4%)
Aristar, Inc. 7.250% 06/15/01 $ 700,000 $ 699,531
Associates Corporation of North America Notes 5.600% 01/15/01 1,600,000 1,581,648
Ford Motor Credit Corp. Notes 7.750% 11/15/02 850,000 864,153
General Motors Acceptance Corp. 5.850% 04/06/00 500,000 499,610
3,644,942
Gas Utility (0.4%)
El Paso Natural Gas Company Notes 7.750% 01/15/02 200,000 201,722
201,722
Health Care (0.9%)
Beckman Coulter 7.450% 03/04/08 500,000 461,460
461,460
Insurance (1.0%)
Allstate Corp. 7.200% 12/01/09 500,000 486,095
486,095
Other Finance (2.0%)
Osprey Trust 8.310% 01/15/03 1,000,000 993,579
993,579
Real Estate Investment Trust (REIT) (1.0%)
Simon Property Group, Inc. 6.750% 02/09/04 500,000 474,445
474,445
Retail Merchandising (1.0%)
K-Mart Corp. 8.375% 12/01/04 500,000 493,232
493,232
Telecomunications (1.3%)
GTE Corp. Debentures 6.940% 04/15/28 500,000 453,010
Sprint Capital Corp. 6.875% 11/15/28 200,000 177,742
630,752
Transportation (1.1%)
Continental Airlines 1999-01A-A EETC 6.545% 02/02/19 599,743 545,082
545,082
Total corporate obligations 15,478,344
Total long-term notes and bonds (cost: $50,782,656) 48,766,585
</TABLE>
The accompanying notes are an integral part of the financial statements.
30
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
BOND PORTFOLIO (continued)
December 31, 1999
<S> <C> <C>
Market
Description Shares Value
Money Market Mutual Funds (0.6%)
Federated Investors Prime Obligation 314,206 $ 314,206
Total money market mutual funds (cost: $314,206) 314,206
Cash and Cash Equivalents (0.3%)
BONY Cash Reserve 145,416
Total cash and cash equivalents (cost: $145,416)
145,416
Total Investments (cost: $51,242,278) $ 49,226,207
</TABLE>
All investments are in United States enterprises.
The accompanying notes are an integral part of the financial statements.
31
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO
December 31, 1999
Market
Description Shares Value
Common Stock (56.2%)
Aerospace (2.0%)
Boeing Co. 10,000 $ 415,625
Precision Castparts Corp. 34,900 916,125
1,331,750
Automotive & Auto Parts (5.9%)
Bandag, Inc. 34,300 857,500
Carlisle Companies, Inc. 29,200 1,051,200
Ford Motor Co. 23,900 1,277,156
TBC Corp.* 133,600 835,000
4,020,856
Banks & Financial (6.2%)
Associates First Capital Corp. 25,240 692,522
Bank One Corp. 19,385 621,531
Citigroup, Inc. 19,013 1,056,410
Ohio Casualty Corp. 59,800 960,538
Washington Mutual, Inc. 33,005 858,130
4,189,131
Broadcasting & Publishing (2.3%)
Chris-Craft Industries, Inc.* 12,086 871,702
Meredith Corp. 15,800 658,663
1,530,365
Building (2.1%)
Fleetwood Enterprises, Inc. 44,800 924,000
Huttig Building Products, Inc. 5,244 25,892
Toll Brothers, Inc. 24,700 460,038
1,409,930
Computer Hardware & Software (2.6%)
Autodesk, Inc. 37,500 1,265,625
International Business
Machines Corp. 4,600 496,800
1,762,425
Diversified Manufacturing (1.6%)
Crane Co. 23,600 469,050
Trinity Industries 21,400 608,563
1,077,613
Furniture & Apparel (7.9%)
Hillenbrand Industries, Inc. 23,100 731,981
Kellwood Co. 39,000 758,063
Kimball International 38,600 636,900
La-Z-Boy Chair Co. 66,900 1,124,755
Liz Claiborne, Inc. 36,000 1,354,500
Reebok International* 95,700 783,544
5,389,743
Health Care (1.0%)
Acuson Corp.* 44,900 $ 564,056
McKesson HBOC, Inc. 5,000 112,813
676,869
Machinery (1.6%)
Baldor Electric Co. 61,000 1,105,625
1,105,625
Metals & Mining (7.7%)
AK Steel Holding Corp. 59,900 1,130,613
ALCOA, Inc. 19,600 1,626,800
Cleveland-Cliffs, Inc. 25,900 806,137
Oregon Steel Mills, Inc. 59,400 471,487
Phelps Dodge Corp. 18,100 1,214,963
5,250,000
Oil & Oil Services (5.7%)
Royal Dutch Petroleum Co. 19,300 1,166,444
Tidewater, Inc. 38,600 1,389,600
Valero Energy Corp. 64,900 1,289,888
3,845,932
Retail (3.1%)
Gymboree Corp.* 73,200 411,750
Lands End, Inc.* 15,000 521,250
Longs Drug Stores Corp. 44,700 1,153,818
2,086,818
Transportation (2.6%)
Alexander & Baldwin, Inc. 44,000 1,003,750
Norfolk Southern Corp. 38,600 791,300
1,795,050
Miscellaneous (3.9%)
Kelly Services, Inc. 38,000 954,750
Michael Foods, Inc. 43,300 1,066,263
P G & E Corp. 31,954 655,057
2,676,070
Total common stock (cost: $36,929,124) 38,148,177
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
32
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO (continued)
December 31, 1999
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-Term Notes and Bonds (42.1%)
U.S. Government and Agency Obligations (14.2%)
Federal National Mortgage Association MTN 5.750% 04/15/03 $ 900,000 $ 874,125
Federal National Mortgage Association MTN 5.625% 05/14/04 1,650,000 1,576,773
U.S. Treasury Inflation Indexed Bonds 3.375% 01/15/07 629,406 593,020
U.S. Treasury Bonds 8.000% 11/15/21 1,350,000 1,532,034
U.S. Treasury Bonds 6.500% 11/15/26 400,000 390,000
U.S. Treasury Notes 7.250% 05/15/04 850,000 875,636
U.S. Treasury Notes 7.250% 05/15/16 1,125,000 1,175,974
U.S. Treasury Notes 6.250% 02/28/02 2,150,000 2,149,334
U.S. Treasury Notes 6.125% 08/15/07 450,000 438,750
9,605,646
Mortgage-Backed and Asset-Backed Securities (16.5%)
California Infrastructure SCE-1 1997-001-A4 6.220% 03/25/04 300,000 296,436
Federal Home Loan Mortgage Corp.Gold Pool #C17374 6.000% 11/01/28 474,219 434,057
Federal Home Loan Mortgage Corp.Gold Pool #C20918 6.000% 01/01/29 708,603 648,591
Federal Home Loan Mortgage Corp.Gold Pool #C22301 6.000% 02/01/29 379,978 347,798
Federal Home Loan Mortgage Corp.Gold Pool #E00543 6.000% 04/01/13 423,836 402,377
Federal Home Loan Mortgage Corp.Gold Pool #E77962 6.500% 07/01/14 736,038 713,956
Federal Home Loan Mortgage Corp. Pool #C14872 6.500% 09/01/28 603,353 568,848
Federal Home Loan Mortgage Corp. Series 2075
Class PE CMO 6.500% 04/15/21 300,000 293,811
GNMA Pool #399069 7.000% 01/15/27 1,469,633 1,420,487
GNMA Pool #407966 6.500% 02/15/28 692,283 649,659
GNMA Pool #416741 7.000% 05/15/26 350,582 339,406
GNMA Pool #422407 6.500% 01/15/26 151,494 143,162
GNMA Pool #424578 6.500% 04/15/26 420,788 397,645
GNMA Pool #425983 6.500% 03/15/26 238,948 225,806
GNMA Pool #431962 6.500% 05/15/26 269,826 254,986
GNMA Pool #436741 7.500% 01/15/27 347,113 343,208
GNMA Pool #443216 8.000% 07/15/27 214,504 216,649
GNMA Pool #443577 6.500% 07/15/28 291,593 273,640
GNMA Pool #451312 8.000% 07/15/27 125,770 127,028
GNMA Pool #465963 6.500% 03/15/28 108,023 101,372
GNMA Pool #468340 6.500% 08/15/28 471,408 442,384
GNMA Pool #471262 6.500% 05/15/28 952,117 893,496
GNMA Pool #474638 6.500% 08/15/28 104,210 97,794
GNMA Pool #502756 7.000% 08/15/29 298,939 288,662
GNMA Pool #519095 7.500% 12/15/29 400,000 395,500
GNMA Pool #521584 7.500% 11/15/29 899,091 888,976
11,205,734
</TABLE>
The accompanying notes are an integral part of the financial statements.
33
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO (continued)
December 31, 1999
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-Term Notes and Bonds (42.1%) (continued)
Corporate Obligations (11.4%)
Aerospace & Defense (1.3%)
Lockheed Martin Corp. 8.500% 12/01/29 $ 250,000 $ 250,875
Raytheon Co. Notes 6.150% 11/01/08 650,000 577,557
828,432
Banking (1.0%)
Korea Development Bank Notes 7.375% 09/17/04 400,000 393,195
PNC Funding Corp. Notes 6.875% 03/01/03 300,000 295,854
689,049
Chemicals (1.5%)
Dow Chemical 7.375% 11/01/29 250,000 239,030
EI Dupont Nemour 6.875% 10/15/09 200,000 193,714
Equistar Chemicals LP 8.750% 02/15/09 200,000 197,390
ICI Wilmington Notes 6.750% 09/15/02 400,000 392,144
1,022,278
Consumer Non-Durables (0.6%)
Anheuser-Busch Cos. Inc. Debentures 6.750% 12/15/27 450,000 404,307
404,307
Consumer Services (0.2%)
Service Corp. International Notes 6.875% 10/01/07 200,000 148,028
148,028
Electric Utility (0.9%)
Hydro-Quebec Debenture 8.050% 07/07/24 250,000 264,035
Public Service New Mexico 7.100% 08/01/05 200,000 192,526
Texas-New Mexico Power 6.250% 01/15/09 150,000 126,596
583,157
Energy (1.0%)
Petroliam Nasional Berhad Notes 7.125% 10/18/06 500,000 480,111
Union Pacific Resources Debentures 7.050% 05/15/18 250,000 222,948
703,059
Finance Company (2.8%)
Aristar, Inc. 7.250% 06/15/01 250,000 249,833
Associates Corporation of North America Notes 5.600% 01/15/01 400,000 395,412
Ford Motor Credit Corp. Notes 7.750% 11/15/02 500,000 508,324
General Motors Acceptance Corp. 5.850% 04/06/00 750,000 749,414
1,902,983
Gas Utility (0.1%)
El Paso Natural Gas Company Notes 7.750% 01/15/02 100,000 100,861
100,861
</TABLE>
34
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO (continued)
December 31, 1999
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-Term Notes and Bonds (42.1%) (continued)
Corporate Obligations (11.4%) (continued)
Health Care (0.2%)
Beckman Coulter 7.450% 03/04/08 $ 150,000 $ 138,438
138,438
Other Finance (0.5%)
Osprey Trust 8.310% 01/15/03 350,000 347,753
347,753
Real Estate Investment Trust (REIT) (0.2%)
Simon Property Group, Inc. 6.750% 02/09/04 150,000 142,334
142,334
Retail Merchandising (0.3%)
K-Mart Corp. 8.375% 12/01/04 200,000 197,293
197,293
Telecommunications (0.5%)
GTE Corp. Debentures 6.940% 04/15/28 350,000 317,107
Sprint Capital Corp. 6.875% 11/15/28 50,000 44,436
361,543
Transportation (0.3%)
Continental Airlines 6.545% 02/02/19 199,914 181,694
181,694
Total corporate obligations 7,751,209
Total long-term notes and bonds (cost: $29,670,829) 28,562,589
Shares
Money Market Mutual Funds (0.5%)
Federated Investors Prime Obligation 323,272 323,272
Total money market mutual funds (cost: $323,272) 323,272
Cash and Cash Equivalents (1.2%)
BONY Cash Reserve 827,159
Total cash and cash equivalents (cost: $827,159) 827,159
Total Investments (cost: $67,750,384) $ 67,861,197
</TABLE>
All investments are in United States enterprises.
The accompanying notes are an integral part of the financial statements.
35
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
TACTICAL ASSET ALLOCATION PORTFOLIO
December 31, 1999
Market
Description Shares Value
Common Stock (62.6%)
Automotive (4.3%)
Ford Motor Co. 2,500 $ 133,594
Paccar, Inc. 2,000 88,625
222,219
Banking (9.8%)
BB & T Corp. 2,000 54,750
Bank One Corp. 2,000 64,125
Comerica Inc. 1,000 46,688
Fleet Boston Financial Corp. 4,700 163,618
Summit Bancorp. 6,000 183,750
512,931
Building Materials (0.8%)
Martin Marietta Materials, Inc.1,000 41,000
41,000
Capital Goods (2.9%)
Caterpillar, Inc. 2,000 94,125
Honeywell International Inc. 1,000 57,688
151,813
Chemicals (1.4%)
Potash Corporation
of Saskatchewan 1,500 72,281
72,281
Electronics (1.2%)
Raytheon Co. 2,300 61,094
61,094
Energy (4.4%)
Diamond Offshore Drilling 3,000 91,687
Exxon Mobil Corp. 1,000 80,563
Texaco, Inc. 1,000 54,313
226,563
Financial Services (3.8%)
AMBAC Financial Group, Inc. 1,300 67,844
Chase Manhattan Corp. 1,700 132,068
199,912
Government Sponsored
Enterprises (5.1%)
Fannie Mae 3,500 218,531
Federal Home Loan
Mortgage Corp. 1,000 47,063
265,594
Health Care (1.0%)
Merck & Co. 800 53,650
53,650
Insurance (7.7%)
AFLAC, Inc. 3,000 $ 141,562
Allstate Corp. 3,000 72,000
Berkshire Hathaway
Inc. Class B 50 91,500
Lincoln National Corp. 2,400 96,000
401,062
Media (2.1%)
Walt Disney Co. 3,800 111,150
111,150
Real Estate (2.0%)
RFS Hotel Investors, Inc. 10,000 104,375
104,375
Restaurants (0.7%)
Tricon Global Restaurants Inc.* 1,000 38,625
38,625
Technology (1.7%)
Hewlett-Packard Co. 800 91,150
91,150
Telecommunications (5.9%)
A T & T Corp. 2,000 101,500
Alltel Corp. 1,000 82,688
Bell Atlantic Corp. 2,000 123,124
307,312
Tobacco (1.6%)
Philip Morris Companies, Inc. 3,500 81,156
81,156
Miscellaneous (6.2%)
Alliance Capital Management
Holdings LLP 5,000 149,687
Convergys Corp. 2,500 76,875
Minnesota Minning &
Manufacturing Co. 1,000 97,875
324,437
Total common stock (cost: $3,106,406) 3,266,324
Preferred Stock (1.9%)
News Corp. LTD 3,000 100,313
Total preferred stock (cost: $62,520) 100,313
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
36
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
TACTICAL ASSET ALLOCATION PORTFOLIO (continued)
December 31, 1999
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-Term Notes & Bonds (26.5%)
Corporate Obligations (26.5%)
Banking (2.7%)
First Union National-N.C. 6.180% 02/15/36 $ 150,000 $ 139,097
139,097
Commercial Services (2.9%)
PHH Corp. 7.020% 11/09/01 150,000 150,860
150,860
Diversified Finance Service (1.4%)
Commercial Credit Co. 6.625% 06/01/15 75,000 74,337
74,337
Electric Utility (2.6%)
Washington Water Power 5.990% 12/10/07 150,000 136,134
136,134
Finance Company (8.4%)
Bear Stearns Company Inc. 6.450% 08/01/02 150,000 146,895
Household Finance Co. 6.450% 03/15/01 150,000 150,571
Morgan Stanley Dean Witter 5.625% 01/20/04 150,000 141,290
438,756
Office Automation & Equipment (2.8%)
Xerox Corp. 6.250% 11/15/26 150,000 143,946
143,946
Radio (1.9%)
Cox Radio, Inc. 6.375% 05/15/05 100,000 100,291
100,291
Real Estate Investment Trust (REIT) (3.8%)
New Plan 7.400% 09/15/09 200,000 199,411
199,411
Total long-term notes and bonds (cost: $1,412,603) 1,382,832
Cash and Cash Equivalents (9.0%)
BONY Cash Reserve 470,830
Total cash and cash equivalents (cost: $470,830) 470,830
Total Investments (cost: $5,052,359) $ 5,220,299
</TABLE>
All investments are in United States enterprises.
The accompanying notes are an integral part of the financial statements.
37
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
CONSERVATIVE INVESTOR PORTFOLIO
December 31, 1999
Market
Description Shares Value
Common Stock (44.1%)
Advertising (0.1%)
Omnicon Group, Inc. 50 $ 5,000
5,000
Aerospace & Air Transport (0.8%)
Boeing Co. 430 17,872
Precision Castparts Corp. 1,300 34,125
51,997
Automotive & Auto Parts (2.4%)
Bandag, Inc. 1,200 30,000
Carlisle Companies, Inc. 1,050 37,800
Ford Motor Co. 800 42,750
Honda Motor Co. Ltd.
Sponsored ADR 83 6,350
PSA Peugeot Citroen 78 4,405
TBC Corp. 4,600 28,750
Toyota Motor Corp.
Sponsored ADR 63 6,134
156,189
Banks (1.0%)
Abbey National PLC 347 11,073
Banco Santander CEN
Sponsored ADR 300 3,506
Bank One Corp. 700 22,443
Bank of Tokyo-Mitsubishi Ltd.
Sponsored ADR 276 3,847
DBS Group Holdings ADR 35 2,294
Deutsche Bank Sponsored ADR 57 4,802
Fortis (NL) Sponsored ADR 71 2,544
Sakura BK Ltd. ADR 42 2,429
San Paolo-IMI SPA
Sponsored ADR 99 2,710
Sanwa Bank Ltd. ADR 27 3,279
UBS AG ADR 300 4,029
62,956
Broadcasting & Publishing (1.2%)
Cablevision Systems Corp.,
Class A 80 $ 6,040
Chris-Craft Industries, Inc.* 215 15,507
Gannett Co., Inc. 220 17,944
Meredith Corp., Ltd. 700 29,181
Time Warner, Inc. 80 5,795
VNU N.V. Sponsored ADR 97 5,073
79,540
Building (1.0%)
CEMEX SA Sponsored ADR
Class B 96 2,676
Fleetwood Enterprises, Inc. 1,600 33,000
Huttig Building Products, Inc. 177 874
Sekisui House Ltd. ADR 34 3,006
Toll Brothers, Inc. 1,200 22,350
61,906
Chemicals (0.2%)
Akzo Nobel N.V.
Sponsored ADR 73 3,632
BASF AG Sponsored ADR 55 2,861
Praxair, Inc. 110 5,534
12,027
Computer Equipment &
Hardware (2.6%)
Canon, Inc. Sponsored ADR 159 6,449
Cisco Systems, Inc. 540 57,848
Compaq Computer Corp. 260 7,036
Dell Computer Corp. 670 34,170
Hewlett-Packard Co. 50 5,697
International Business
Machines Corp. 470 50,760
NEC Corp. Sponsored ADR 49 5,972
167,932
Computer Software &
Services (3.3%)
America Online, Inc. 100 7,544
At Home Corp. 130 5,574
Autodesk, Inc. 1,200 40,500
Inktomi Corp. 280 24,850
Microsoft, Inc. 460 53,705
SAP AG Sponsored ADR 100 5,206
Veritas Software, Inc. 200 28,625
Yahoo!, Inc. 110 47,596
213,600
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
38
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
CONSERVATIVE INVESTOR PORTFOLIO (continued)
December 31, 1999
Market
Description Shares Value
Common Stock (44.1%) (continued)
Electrical Equipment &
& Electronics (2.9%)
Applied Materials, Inc. 320 $ 40,540
Fujitsu Ltd. ADR 31 7,057
Intel Corp. 660 54,325
JDS Uniphase Corp. 120 19,358
Kyocera Corp. Sponsored ADR 100 26,200
Minebea Company Ltd.
Sponsored ADR 167 5,720
Sony Corp. ADR 69 19,647
ST Microelectronics N.V. ADR 100 15,144
187,991
Entertainment & Leisure (0.3%)
Marriott International 170 5,366
Nintendo Company Ltd. ADR 294 6,095
Realnetworks, Inc. 70 8,421
19,882
Financial Services (2.3%)
Allied Zurich PLC
Sponsored ADR 245 5,848
Associates First Capital Corp. 1,094 30,016
Citigroup, Inc. 600 33,337
Federal Home Loan
Mortgage Corp. 120 5,648
Federal National
Mortgage Association 150 9,366
ING Groep N.V.
Sponsored ADR 87 5,307
Nomura Securities Ltd. ADR 38 6,850
Orix Corporation
Sponsored ADR 98 11,116
Providian Financial Corp. 60 5,464
Washington Mutual, Inc. 1,300 33,800
146,752
Food, Beverage, Tobacco (1.3%)
Anheuser-Busch Companies, Inc. 70 4,961
Coca-Cola Co. 90 5,243
Groupe Danone
Sponsored ADR 173 8,055
Michael Foods, Inc. 1,400 34,474
Pepsico, Inc. 250 8,813
Philip Morris Companies, Inc. 830 19,246
80,792
Furniture & Apparel (3.1%)
Hillenbrand Industries, Inc. 900 $ 28,519
Kellwood Co. 1,450 28,184
Kimball International, Inc.
Class B 1,500 24,750
La-Z-Boy, Inc. 2,400 40,350
Liz Claiborne, Inc. 1,300 48,913
Reebok International* 3,100 25,381
196,097
Health Care (3.3%)
Acuson Corp.* 1,800 22,613
Amgen, Inc. 700 42,043
Baxter International, Inc. 80 5,025
Bristol-Myers Squibb Co. 670 43,005
Glaxo Wellcome PLC
Sponsored ADR 177 9,890
Johnson & Johnson 60 5,588
McKesson HBOC, Inc. 800 18,050
Merck & Co. 760 50,967
Pfizer, Inc. 280 9,083
Roche Holding Ltd. ADR 46 5,431
211,695
Hospital Management (0.2%)
United Healthcare Corp. 100 5,313
Wellpoint Health Networks, Inc. 80 5,275
10,588
Household Products (0.6%)
Colgate-Palmolive Co. 90 5,850
KAO Corp. ADR 12 3,417
Proctor & Gamble Co. 270 29,582
38,849
Insurance (1.0%)
Aetna, Inc. 250 13,953
AXA-UAP Sponsored ADR 100 7,100
Hartford Life, Inc. 130 5,720
Ohio Casualty Corp. 2,200 35,338
62,111
Machinery (0.7%)
Baldor Electric Co. 2,300 41,688
41,688
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
39
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
CONSERVATIVE INVESTOR PORTFOLIO (continued)
December 31, 1999
Market
Description Shares Value
Common Stock (44.1%) (continued)
Manufacturing (1.9%)
Crane Co. 900 $ 17,888
General Electric Co. 360 55,710
Textron, Inc. 340 26,073
Trinity Industries 800 22,750
122,421
Merchandising
Food & Drug (0.9%)
Albertsons, Inc. 180 5,805
Kroger Co. 320 6,040
Longs Drug Stores, Inc. 1,700 43,881
55,726
Metals & Mining (2.8%)
AK Steel Holding Corp. 2,200 41,524
ALCOA, Inc. 700 58,100
Cleveland-Cliffs, Inc. 900 28,013
Oregon Steel Mills, Inc. 1,800 14,288
Phelps Dodge Corp. 600 40,275
182,200
Oil & Oil Services (2.5%)
BP Amoco PLC
Sponsored ADR 264 15,659
Enron Corp. 140 6,213
Royal Dutch Petroleum Co. 700 42,306
Tidewater, Inc. 1,400 50,400
Total Fina SA Sponsored ADR 100 6,925
Valero Energy Corp. 2,000 39,750
161,253
Real Estate Development (0.1%)
Beni Stabili SPA 198 70
Meditrust Corp. 1,690 9,295
9,365
Retail (2.1%)
Cifra SA ADR 100 $ 2,004
Circuit City Stores -
Circuit City Group 340 15,321
Dayton-Hudson Corp. 100 7,344
Gymboree Corp.* 2,400 13,500
Home Depot, Inc. 300 20,568
Lands End, Inc.* 500 17,375
Staples, Inc. 260 5,395
Wal-Mart Stores, Inc. 770 53,226
134,733
Telecommunications (3.3%)
A T & T Corp. 320 16,240
Alcatel Alsthom CGE
Sponsored ADR 253 11,385
Bell Atlantic Corp. 110 6,772
Lucent Technologies, Inc. 550 41,146
MCI Worldcom, Inc. 360 19,102
NTL Inc. 50 6,238
Nippon Telegraph & Telephone
Sponsored ADR 100 8,613
NTT Mobile Comm Network
Sponsored ADR 58 11,542
Nokia Corporation
Sponsored ADR 100 19,000
Portugal Telecom SA ADR 465 5,057
Qualcomm Inc. 200 35,224
Qwest Communications, Inc. 130 5,590
Singapore Telecom ADR 91 1,878
Telefonica SA ADR 102 8,039
Vodafone Airtouch PLC
Sponsored ADR 255 12,623
208,449
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
40
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
CONSERVATIVE INVESTOR PORTFOLIO (continued)
December 31, 1999
Market
Description Shares Value
Common Stock (44.1%) (continued)
Transportation (1.2%)
Alexander & Baldwin, Inc. 1,600 $ 36,500
Norfolk Southern Corp. 1,400 28,700
Peninsular & Oriental
Sponsored ADR 296 9,854
75,054
Utilities (0.4%)
Korea Electric Power Corp.
Sponsored ADR 100 1,675
PG & E Corp. 1,100 22,550
24,225
Miscellaneous (0.6%)
Kelly Services, Inc. Class A 1,250 31,406
UPM Kymmene Corp. Sponsored ADR 75 3,206
Vivendi Sponsored ADR 406 7,296
41,908
Total common stock (cost: $2,618,589) 2,822,926
Money Market Mutual Funds (2.3%)
Federated Investors
Prime Obligation 150,000 150,000
Total money market
mutual funds (cost: $150,000) 150,000
Mutual Funds (3.3%)
Federated High Yield Fund 25,615 211,578
Total mutual funds (cost: $250,000) 211,578
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
41
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
CONSERVATIVE INVESTOR PORTFOLIO (continued)
December 31, 1999
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-Term Notes and Bonds (44.2%)
U.S. Government & Agency Obligations (16.0%)
Federal National Mortgage Association MTN 5.625% 05/14/04 $ 200,000 $ 191,124
U.S. Treasury Bonds 8.000% 11/15/21 75,000 85,113
U.S. Treasury Bonds 6.500% 11/15/26 125,000 121,875
U.S. Treasury Notes 7.250% 05/15/04 50,000 51,508
U.S. Treasury Notes 6.250% 04/30/01 225,000 225,177
U.S. Treasury Notes 6.250% 02/28/02 125,000 124,961
U.S. Treasury Notes 6.125% 08/15/07 75,000 73,125
U.S. Treasury Inflation Indexed Bonds 3.375% 01/15/07 157,352 148,256
1,021,139
Mortgage Backed Securities (15.0%)
Federal Home Loan Mortgage Corp. Gold Pool #C20918 6.000% 01/01/29 188,961 172,958
Federal Home Loan Mortgage Corp. Gold Pool #E77962 6.500% 07/01/14 98,139 95,195
GNMA Pool #456155 6.500% 04/15/28 287,341 269,648
GNMA Pool #474143 7.000% 04/15/28 256,826 247,997
GNMA Pool #482825 6.000% 11/15/28 194,715 177,068
962,866
Corporate Obligations (13.2%)
Consumer Non-Durables (1.1%)
Anheuser-Busch Cos. Inc. Debentures 6.750% 12/15/27 75,000 67,385
67,385
Electric Utility (2.1%)
Public Service New Mexico 7.100% 08/01/05 75,000 72,197
Texas-New Mexico Power 6.250% 01/15/09 75,000 63,298
135,495
Energy (1.0%)
Union Pacific Resources Debentures 7.050% 05/15/18 75,000 66,884
66,884
Finance Company (3.5%)
Aristar, Inc. 7.250% 06/15/01 75,000 74,950
Ford Motor Credit Corp. Notes 7.750% 11/15/02 75,000 76,249
General Motors Acceptance Corp. Notes 5.850% 04/06/00 75,000 74,941
226,140
Health Care (1.1%)
Beckman Coulter 7.450% 03/04/08 75,000 69,219
69,219
Other Finance (1.2%)
Osprey Trust 8.310% 01/15/03 75,000 74,517
74,517
</TABLE>
All investments are in United States enterprises.
The accompanying notes are an integral part of the financial statements.
42
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
CONSERVATIVE INVESTOR PORTFOLIO (continued)
December 31, 1999
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-Term Notes and Bonds (44.2%) (continued)
Corporate Obligations (13.2%) (continued)
Real Estate Investment Trust (REIT) (1.1%)
Simon Property Group, Inc. 6.750% 02/09/04 $ 75,000 $ 71,167
71,167
Telecommunications (2.1%)
GTE Corp. Debentures 6.940% 04/15/28 75,000 67,952
Sprint Capital Corp. 6.875% 11/15/28 75,000 66,653
134,605
Total corporate obligations 845,412
Total long-term notes and bonds (cost: $2,976,175) 2,829,417
Short-Term Notes and Bonds (3.9%)
American General Finance Corp. 5.960% 02/04/00 100,000 99,437
General Electric Capital Corp. 6.000% 02/04/00 150,000 149,154
Total short-term notes and bonds (cost: $248,591) 248,591
Cash and Cash Equivalents (2.2%)
BONY Cash Reserve 139,521
Total cash and cash equivalents (cost: $139,521) 139,521
Total Investments (cost: $6,382,876) $ 6,402,033
</TABLE>
All investments are in United States enterprises.
The accompanying notes are an integral part of the financial statements.
43
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MODERATE INVESTOR PORTFOLIO
December 31, 1999
Market
Description Shares Value
Common Stock (64.9%)
Advertising (0.1%)
Omnicon Group, Inc. 80 $ 8,000
8,000
Aerospace & Air Transport (1.2%)
Boeing Co. 810 33,666
Precision Castparts Corp. 2,300 60,375
94,041
Automotive & Auto Parts (3.6%)
Bandag, Inc. 2,100 52,500
Carlisle Companies, Inc. 1,800 64,800
Ford Motor Co. 1,400 74,812
Honda Motor Co. Ltd.
Sponsored ADR 187 14,306
PSA Peugeot Citroen 177 9,995
TBC Corp. 7,900 49,375
Toyota Motor Corp.
Sponsored ADR 142 13,827
279,615
Banks (1.9%)
Abbey National PLC 784 25,017
Banco Santander CEN
Sponsored ADR 700 8,181
Bank One Corp. 1,200 38,474
Bank of Tokyo-Mitsubishi Ltd.
Sponsored ADR 600 8,363
DBS Group Holdings ADR 79 5,178
Deutsche Bank Sponsored ADR 128 10,783
Fortis (NL) Sponsored ADR 100 3,583
Fuji Bank Ltd. ADR 100 9,701
HSBC Holdings PLC
Sponsored ADR 100 7,138
Sakura BK Ltd. ADR 95 5,494
San Paolo-IMI SPA
Sponsored ADR 224 6,132
Sanwa Bank Ltd. ADR 60 7,286
UBS AG ADR 800 10,744
146,074
Broadcasting & Publishing (1.7%)
Cablevision Systems Corp.,
Class A 120 $ 9,060
Chris-Craft Industries, Inc.* 321 23,152
Gannett Co., Inc. 350 28,547
Meredith Corp., Ltd. 1,100 45,856
Reuters Group PLC 64 5,172
Time Warner, Inc. 130 9,417
VNU N.V. Sponsored ADR 200 10,460
131,664
Building (1.4%)
CEMEX SA Sponsored ADR
Class B 200 5,575
Fleetwood Enterprises, Inc. 2,700 55,687
Huttig Building Products, Inc. 311 1,536
Sekisui House Ltd. ADR 77 6,807
Toll Brothers, Inc. 2,100 39,113
108,718
Chemicals (0.3%)
Akzo Nobel N.V.
Sponsored ADR 165 8,209
BASF AG Sponsored ADR 125 6,501
Praxair, Inc. 180 9,056
23,766
Computer Equipment &
Hardware (3.6%)
Canon, Inc. Sponsored ADR 300 12,169
Cisco Systems, Inc. 850 91,056
Compaq Computer Corp. 410 11,096
Dell Computer Corp. 1,050 53,550
Hewlett-Packard Co. 80 9,115
International Business
Machines Corp. 780 84,240
NEC Corp. Sponsored ADR 112 13,650
274,876
Computer Software &
Services (4.6%)
America Online, Inc. 160 12,070
At Home Corp. 210 9,004
Autodesk, Inc. 2,100 70,875
Inktomi Corp. 440 39,050
Microsoft, Inc. 730 85,228
SAP AG Sponsored ADR 200 10,413
Veritas Software, Inc. 320 45,800
Yahoo!, Inc. 180 77,883
350,323
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
44
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MODERATE INVESTOR PORTFOLIO (continued)
December 31, 1999
Market
Description Shares Value
Common Stock (64.9%) (continued)
Electrical Equipment &
& Electronics (3.6%)
Applied Materials, Inc. 500 $ 63,343
Fujitsu Ltd. ADR 71 16,162
Intel Corp. 1,030 84,782
JDS Uniphase Corp. 180 29,036
Kyocera Corp. Sponsored ADR 100 26,200
Minebea Company Ltd.
Sponsored ADR 37 12,912
Sony Corp. ADR 100 28,475
TDK Corp. ADR 92 12,449
273,359
Entertainment & Leisure (0.4%)
Marriott International 260 8,206
Nintendo Company Ltd. ADR 600 12,438
Realnetworks, Inc. 110 13,234
33,878
Financial Services (3.4%)
Allied Zurich PLC
Sponsored ADR 552 13,176
Associates First Capital Corp. 1,908 52,350
Citigroup, Inc. 1,050 58,341
Federal Home Loan
Mortgage Corp. 180 8,471
Federal National
Mortgage Association 230 14,361
ING Groep N.V.
Sponsored ADR 201 12,261
Nomura Securities Ltd. ADR 85 15,321
Orix Corporation
Sponsored ADR 200 22,688
Providian Financial Corp. 100 9,106
Washington Mutual, Inc. 2,200 57,200
263,275
Food, Beverage, Tobacco (1.8%)
Anheuser-Busch Companies, Inc. 110 7,796
Coca-Cola Co. 140 8,155
Groupe Danone
Sponsored ADR 392 18,253
Michael Foods, Inc. 2,400 59,100
Pepsico, Inc. 390 13,748
Philip Morris Companies, Inc. 1,310 30,375
137,427
Furniture & Apparel (4.5%)
Hillenbrand Industries, Inc. 1,500 $ 47,531
Kellwood Co. 2,500 48,594
Kimball International, Inc.
Class B 3,200 52,800
La-Z-Boy, Inc. 4,300 72,294
Liz Claiborne, Inc. 2,200 82,775
Reebok International* 5,200 42,575
346,569
Health Care (4.8%)
Acuson Corp.* 3,200 40,200
Amgen, Inc. 1,100 66,069
Aventis SA ADR 94 5,346
Baxter International, Inc. 140 8,794
Bristol-Myers Squibb Co. 1,050 67,396
Glaxo Wellcome PLC
Sponsored ADR 401 22,406
Johnson & Johnson 90 8,381
McKesson HBOC, Inc. 1,300 29,331
Merck & Co. 1,400 93,888
Pfizer, Inc. 440 14,273
Roche Holding Ltd. ADR 104 12,279
368,363
Hospital Management (0.2%)
United Healthcare Corp. 160 8,500
Wellpoint Health Networks, Inc. 140 9,231
17,731
Household Products (0.8%)
Colgate-Palmolive Co. 140 9,100
KAO Corp. ADR 26 7,405
Proctor & Gamble Co. 430 47,111
63,616
Insurance (1.5%)
Aetna, Inc. 400 22,325
AXA-UAP Sponsored ADR 264 18,744
Hartford Life, Inc. 200 8,800
Ohio Casualty Corp. 3,900 62,644
112,513
Machinery (0.9%)
Baldor Electric Co. 4,000 72,500
72,500
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
45
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MODERATE INVESTOR PORTFOLIO (continued)
December 31, 1999
Market
Description Shares Value
Common Stock (64.9%) (continued)
Manufacturing (2.7%)
Crane Co. 1,500 $ 29,813
General Electric Co. 560 86,660
Siemens AG 71 9,038
Textron, Inc. 530 40,644
Trinity Industries 1,400 39,812
205,967
Merchandising
Food & Drug (1.4%)
Albertsons, Inc. 280 9,030
Ito-Yokado Co. Ltd
Sponsored ADR 100 10,463
Kroger Co. 520 9,815
Longs Drug Stores, Inc. 2,900 74,856
104,164
Metals & Mining (4.0%)
AK Steel Holding Corp. 3,400 64,175
ALCOA, Inc. 1,100 91,300
Cleveland-Cliffs, Inc. 1,600 49,800
Oregon Steel Mills, Inc. 3,600 28,575
Phelps Dodge Corp. 1,100 73,838
307,688
Oil & Oil Services (3.8%)
BP Amoco PLC
Sponsored ADR 600 35,588
Enron Corp. 220 9,763
Royal Dutch Petroleum Co. 1,200 72,525
Tidewater, Inc. 2,400 86,400
Total Fina SA Sponsored ADR 290 20,082
Valero Energy Corp. 3,500 69,562
293,920
Real Estate Development (0.2%)
Beni Stabili SPA 448 158
Meditrust Corp. 2,660 14,630
14,788
Retail (2.9%)
Cifra SA ADR 200 $ 4,008
Circuit City Stores -
Circuit City Group 540 24,334
Dayton-Hudson Corp. 160 11,750
Gymboree Corp.* 4,500 25,313
Home Depot, Inc. 495 33,937
Lands End, Inc.* 1,000 34,750
Staples, Inc. 400 8,300
Wal-Mart Stores, Inc. 1,220 84,333
226,725
Telecommunications (5.9%)
A T & T Corp. 500 25,375
Alcatel Alsthom CGE
Sponsored ADR 573 25,785
Bell Atlantic Corp. 180 11,081
British Telecom PLC
Sponsored ADR 79 18,802
Korea Telecom Sponsored ADR 100 7,475
Lucent Technologies, Inc. 870 65,086
MCI Worldcom, Inc. 570 30,246
NTL Inc. 80 9,980
NTT Mobile Comm Network
Sponsored ADR 130 25,870
Nippon Telegraph & Telephone
Sponsored ADR 300 25,838
Nokia Corporation
Sponsored ADR 200 38,000
Orange PLC 96 15,888
Portugal Telecom SA ADR 1,000 10,875
Qualcomm Inc. 320 56,360
Qwest Communications, Inc. 200 8,600
Singapore Telecom ADR 206 4,252
Telecomunicacoes Brasileiras
SA ADR 68 8,738
Telefonica SA ADR 301 23,723
Telefonos de Mexico ADR 100 11,250
Vodafone Airtouch PLC
Sponsored ADR 575 28,462
451,686
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
46
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MODERATE INVESTOR PORTFOLIO (continued)
December 31, 1999
Market
Description Shares Value
Common Stock (64.9%) (continued)
Transportation (1.8%)
Alexander & Baldwin, Inc. 2,800 $ 63,875
Norfolk Southern Corp. 2,500 51,250
Peninsular & Oriental
Sponsored ADR 669 22,271
137,396
Utilities (0.6%)
Korea Electric Power Corp.
Sponsored ADR 200 3,350
PG & E Corp. 2,000 41,000
44,350
Miscellaneous (1.3%)
Kelly Services, Inc.Class A 2,150 54,019
Koninklijke Phillips NV ADR 98 13,230
Hutchison Whampoa Ltd. ADR 100 7,268
UPM Kymmene Corp. Sponsored ADR 168 7,182
Vivendi Sponsored ADR 1,000 17,970
99,669
Total common stock (cost: $4,623,338) 4,992,661
Money Market Mutual Funds (2.2%)
Federated Investors
Prime Obligation 170,000 170,000
Total money market
mutual funds (cost: $170,000) 170,000
Mutual Funds (3.3%)
Federated High Yield Fund 31,195 257,672
Total mutual funds (cost: $300,000) 257,672
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
47
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MODERATE INVESTOR PORTFOLIO (continued)
December 31, 1999
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-Term Notes and Bonds (27.9%)
U.S. Government & Agency Obligations (11.0%)
Federal National Mortgage Association MTN 5.625% 05/14/04 $ 150,000 $ 143,343
U.S. Treasury Bonds 8.000% 11/15/21 50,000 56,742
U.S. Treasury Bonds 6.500% 11/15/26 125,000 121,875
U.S. Treasury Notes 7.250% 05/15/04 50,000 51,508
U.S. Treasury Notes 6.250% 02/28/02 325,000 324,899
U.S. Treasury Notes 6.125% 08/15/07 50,000 48,750
U.S. Treasury Inflation Indexed Bonds 3.375% 01/15/07 104,901 98,838
845,955
Mortgage Backed Securities (9.6%)
Federal Home Loan Mortgage Corp. Gold Pool #C20918 6.000% 01/01/29 141,721 129,718
Federal Home Loan Mortgage Corp. Gold Pool #E77962 6.500% 07/01/14 98,139 95,195
GNMA Pool #454007 6.500% 04/15/28 218,573 205,115
GNMA Pool #474143 7.000% 04/15/28 177,803 171,690
GNMA Pool #482825 6.000% 11/15/28 146,036 132,801
734,519
Corporate Obligations (7.3%)
Consumer Non-Durables (0.6%)
Anheuser-Busch Cos. Inc. Debentures 6.750% 12/15/27 50,000 44,923
44,923
Electric Utility (1.2%)
Public Service New Mexico 7.100% 08/01/05 50,000 48,132
Texas-New Mexico Power 6.250% 01/15/09 50,000 42,198
90,330
Energy (0.6%)
Union Pacific Resources Debentures 7.050% 05/15/18 50,000 44,590
44,590
Finance Company (1.9%)
Aristar, Inc. 7.250% 06/15/01 50,000 49,967
Ford Motor Credit Corp. Notes 7.750% 11/15/02 50,000 50,832
General Motors Acceptance Corp. Notes 5.850% 04/06/00 50,000 49,961
150,760
Health Care (0.6%)
Beckman Coulter 7.450% 03/04/08 50,000 46,146
46,146
Other Finance (0.6%)
Osprey Trust 8.310% 01/15/03 50,000 49,679
49,679
</TABLE>
All investments are in United States enterprises.
The accompanying notes are an integral part of the financial statements.
48
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MODERATE INVESTOR PORTFOLIO (continued)
December 31, 1999
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-Term Notes and Bonds (27.9%) (continued)
Corporate Obligations (7.3%) (continued)
Real Estate Investment Trust (REIT) (0.6%)
Simon Property Group, Inc. 6.750% 02/09/04 $ 50,000 $ 47,445
47,445
Telecommunications (1.2%)
GTE Corp. Debentures 6.940% 04/15/28 50,000 45,301
Sprint Capital Corp. 6.875% 11/15/28 50,000 44,435
89,736
Total corporate obligations 563,609
Total long-term notes and bonds (cost: $2,253,272) 2,144,083
Cash and Cash Equivalents (1.7%)
BONY Cash Reserve 128,681
Total cash and cash equivalents (cost: $128,681) 128,681
Total Investments (cost: $7,475,291) $ 7,693,097
</TABLE>
All investments are in United States enterprises.
The accompanying notes are an integral part of the financial statements.
49
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
AGGRESSIVE INVESTOR PORTFOLIO
December 31, 1999
Market
Description Shares Value
Common Stock (83.9%)
Advertising (0.2%)
Omnicon Group, Inc. 120 $ 12,000
12,000
Aerospace & Air Transport (1.6%)
Boeing Co. 1,100 45,719
Precision Castparts Corp. 3,000 78,750
124,469
Automotive & Auto Parts (4.8%)
Bandag, Inc. 2,900 72,500
Carlisle Companies, Inc. 2,450 88,200
Ford Motor Co. 1,900 101,530
Honda Motor Co. Ltd.
Sponsored ADR 193 14,765
PSA Peugeot Citroen 157 8,866
TBC Corp. 11,500 71,875
Toyota Motor Corp.
Sponsored ADR 100 9,738
367,474
Banks (2.0%)
Abbey National PLC 704 22,464
Banco Santander CEN
Sponsored ADR 600 7,013
Bank One Corp. 1,800 57,712
Bank of Tokyo-Mitsubishi Ltd.
Sponsored ADR 600 8,363
DBS Group Holdings ADR 82 5,374
Deutsche Bank
Sponsored ADR 115 9,688
Fortis (NL) Sponsored ADR 100 3,583
Fuji Bank Ltd. ADR 100 9,701
HSBC Holdings PLC
Sponsored ADR 100 7,138
Sakura BK Ltd. ADR 97 5,610
San Paolo-IMI SPA
Sponsored ADR 200 5,475
Sanwa Bank Ltd. ADR 61 7,408
UBS AG ADR 700 9,400
158,929
Broadcasting & Publishing (2.3%)
Cablevision Systems Corp.,
Class A 180 $ 13,590
Chris-Craft Industries, Inc.* 527 38,010
Gannett Co., Inc. 510 41,597
Meredith Corp., Ltd. 1,400 58,362
Reuters Group PLC 66 5,334
Time Warner, Inc. 190 13,763
VNU N.V. Sponsored ADR 200 10,460
181,116
Building (1.8%)
CEMEX SA Sponsored ADR
Class B 200 5,575
Fleetwood Enterprises, Inc. 3,600 74,250
Huttig Building Products, Inc. 422 2,084
Sekisui House Ltd. ADR 80 7,072
Toll Brothers, Inc. 2,800 52,150
141,131
Chemicals (0.3%)
Akzo Nobel N.V.
Sponsored ADR 170 8,458
BASF AG Sponsored ADR 100 ` 5,201
Praxair, Inc. 260 13,081
26,740
Computer Equipment &
Hardware (5.1%)
Canon, Inc. Sponsored ADR 300 12,169
Cisco Systems, Inc. 1,240 132,834
Compaq Computer Corp. 600 16,238
Dell Computer Corp. 1,540 78,540
Hewlett-Packard Co. 110 12,533
International Business
Machines Corp. 1,240 133,920
NEC Corp. Sponsored ADR 100 12,188
398,422
Computer Software &
Services (6.3%)
America Online, Inc. 240 18,105
At Home Corp. 300 12,863
Autodesk, Inc. 2,700 91,125
Inktomi Corp. 640 56,800
Microsoft, Inc. 1,070 124,922
SAP AG Sponsored ADR 200 10,413
Veritas Software, Inc. 460 65,838
Yahoo!, Inc. 260 112,498
492,564
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
50
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
AGGRESSIVE INVESTOR PORTFOLIO (continued)
December 31, 1999
Market
Description Shares Value
Common Stock (83.9%) (continued)
Electrical Equipment &
& Electronics (5.0%)
Applied Materials, Inc. 730 $ 92,482
Fujitsu Ltd. ADR 74 16,845
Intel Corp. 1,510 124,291
JDS Uniphase Corp. 260 41,941
Kyocera Corp. Sponsored ADR 100 26,200
Minebea Company Ltd.
Sponsored ADR 388 13,289
Sony Corp. ADR 100 28,475
ST Microelectronics N.V. ADR 200 30,288
TDK Corp. ADR 95 12,855
386,666
Entertainment & Leisure (0.5%)
Marriott International 380 11,994
Nintendo Company Ltd. ADR 500 10,365
Realnetworks, Inc. 160 19,250
41,609
Financial Services (4.3%)
Allied Zurich PLC
Sponsored ADR 500 11,935
Associates First Capital Corp. 2,596 71,228
Citigroup, Inc. 1,350 75,009
Federal Home Loan
Mortgage Corp. 260 12,236
Federal National Mortgage
Association 330 20,604
ING Groep N.V.
Sponsored ADR 204 12,444
Nomura Securities Ltd. ADR 88 15,862
Orix Corporation
Sponsored ADR 200 22,688
Providian Financial Corp. 150 13,659
Washington Mutual, Inc. 2,900 75,400
331,055
Food, Beverage, Tobacco (2.3%)
Anheuser-Busch
Companies, Inc. 170 12,049
Coca-Cola Co. 210 12,233
Groupe Danone
Sponsored ADR 404 18,811
Michael Foods, Inc. 3,100 76,338
Pepsico, Inc. 560 19,740
Philip Morris Companies, Inc. 1,910 44,287
183,458
Furniture & Apparel (6.1%)
Hillenbrand Industries, Inc. 2,000 $ 63,374
Kellwood Co. 3,350 65,116
Kimball International, Inc.
Class B 4,200 69,300
La-Z-Boy, Inc. 5,700 95,831
Liz Claiborne, Inc. 3,000 112,875
Reebok International* 8,100 66,319
472,815
Health Care (6.2%)
Acuson Corp.* 4,100 51,506
Amgen, Inc. 1,600 96,100
Aventis SA ADR 97 5,517
Baxter International, Inc. 200 12,563
Bristol-Myers Squibb Co. 1,540 98,849
Glaxo Wellcome PLC
Sponsored ADR 400 22,350
Johnson & Johnson 130 12,106
McKesson HBOC, Inc. 1,700 38,356
Merck & Co. 1,750 117,359
Pfizer, Inc. 650 21,084
Roche Holding Ltd. ADR 92 10,862
486,652
Hospital Management (0.3%)
United Healthcare Corp. 230 12,218
Wellpoint Health Networks, Inc. 200 13,188
25,406
Household Products (1.0%)
Colgate-Palmolive Co. 210 13,650
Proctor & Gamble Co. 620 67,929
81,579
Insurance (1.8%)
Aetna, Inc. 580 32,371
AXA-UAP Sponsored ADR 200 14,200
Hartford Life, Inc. 300 13,200
Ohio Casualty Corp. 5,100 81,919
141,690
Machinery (1.2%)
Baldor Electric Co. 5,300 96,063
96,063
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
51
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
AGGRESSIVE INVESTOR PORTFOLIO (continued)
December 31, 1999
Market
Description Shares Value
Common Stock (83.9%) (continued)
Manufacturing (3.7%)
Crane Co. 2,000 $ 39,750
General Electric Co. 820 126,895
Siemens AG 74 9,419
Textron, Inc. 770 59,049
Trinity Industries 1,900 54,031
289,144
Merchandising
Food & Drug (1.7%)
Albertsons, Inc. 410 13,223
Ito-Yokado Co. Ltd
Sponsored ADR 100 10,463
Kroger Co. 760 14,345
Longs Drug Stores, Inc. 3,800 98,087
136,118
Metals & Mining (5.3%)
AK Steel Holding Corp. 4,600 86,825
ALCOA, Inc. 1,500 124,500
Cleveland-Cliffs, Inc. 2,100 65,363
Oregon Steel Mills, Inc. 4,300 34,131
Phelps Dodge Corp. 1,500 100,687
411,506
Oil & Oil Services (4.7%)
BP Amoco PLC
Sponsored ADR 500 29,656
Enron Corp. 330 14,644
Royal Dutch Petroleum Co. 1,600 96,700
Tidewater, Inc. 3,200 115,200
Total Fina SA Sponsored ADR 200 13,850
Valero Energy Corp. 4,700 93,413
363,463
Real Estate Development (0.3%)
Beni Stabili SPA 460 162
Meditrust Corp. 3,890 21,395
21,557
Retail (4.0%)
Cifra SA ADR 200 $ 4,008
Circuit City Stores -
Circuit City Group 790 35,599
Dayton-Hudson Corp. 230 16,891
Gymboree Corp.* 5,700 32,063
Home Depot, Inc. 720 49,364
Lands End, Inc.* 1,200 41,700
Staples, Inc. 590 12,243
Wal-Mart Stores, Inc. 1,780 123,042
314,910
Telecommunications (6.7%)
A T & T Corp. 740 37,555
Alcatel Alsthom CGE
Sponsored ADR 506 22,770
Bell Atlantic Corp. 260 16,006
British Telecom PLC
Sponsored ADR 82 19,516
Korea Telecom
Sponsored ADR 100 7,475
Lucent Technologies, Inc. 1,270 95,011
MCI Worldcom, Inc. 840 44,573
NTL Inc. 110 13,723
NTT Mobile Comm
Network Sponsored ADR 115 22,885
Nippon Telegraph &
Telephone Sponsored ADR 300 25,838
Nokia Corporation
Sponsored ADR 200 38,000
Orange PLC 99 16,385
Portugal Telecom SA ADR 1,000 10,875
Qualcomm Inc. 440 77,495
Qwest Communications, Inc. 290 12,470
Telecomunicacoes Brasileiras
SA ADR 70 8,995
Telefonica SA ADR 206 16,235
Telefonos de Mexico ADR 100 11,250
Vodafone Airtouch PLC
Sponsored ADR 500 24,750
521,807
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
52
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
AGGRESSIVE INVESTOR PORTFOLIO (continued)
December 31, 1999
Market
Description Shares Value
Common Stock (83.9%) (continued)
Transportation (2.2%)
Alexander & Baldwin, Inc. 3,800 $ 86,687
Norfolk Southern Corp. 3,300 67,650
Peninsular & Oriental
Sponsored ADR 599 19,941
174,278
Utilities (0.7%)
Korea Electric Power Corp.
Sponsored ADR 200 3,350
PG & E Corp. 2,600 53,300
56,650
Miscellaneous (1.5%)
Kelly Services, Inc. Class A 2,800 $ 70,350
Koninklijke Phillips
NV ADR 100 13,500
Hutchison Whampoa Ltd. ADR 100 7,268
UPM Kymmene Corp.
Sponsored ADR 173 7,396
Vivendi Sponsored ADR 900 16,173
114,687
Total common stock (cost: $6,043,766) 6,553,968
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
53
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
AGGRESSIVE INVESTOR PORTFOLIO (continued)
December 31, 1999
<S> <C> <C> <C> <C>
Market
Description Shares Value
Mutual Funds (3.6%)
Federated High Yield Fund 33,985 $ 280,719
Total mutual funds (cost: $325,000) 280,719
Interest Maturity Principal
Rate Date Amount
Long-Term Notes and Bonds (11.8%)
U.S. Government & Agency Obligations (3.2%)
Federal National Mortgage Association MTN 5.625% 05/14/04 $ 100,000 95,562
U.S. Treasury Bonds 8.000% 11/15/21 25,000 28,371
U.S. Treasury Bonds 6.500% 11/15/26 50,000 48,750
U.S. Treasury Notes 6.125% 08/15/07 25,000 24,375
U.S. Treasury Inflation Indexed Bonds 3.375% 01/15/07 52,451 49,418
246,476
Mortgage Backed Securities (5.0%)
Federal Home Loan Mortgage Corp. Gold Pool #C20918 6.000% 01/01/29 94,480 86,479
Federal Home Loan Mortgage Corp. Gold Pool #E77962 6.500% 07/01/14 49,070 47,598
GNMA Pool #454007 6.500% 04/15/28 97,143 91,162
GNMA Pool #474143 7.000% 04/15/28 79,023 76,307
GNMA Pool #482825 6.000% 11/15/28 97,357 88,534
390,080
Corporate Obligations (3.6%)
Consumer Non-Durables (0.3%)
Anheuser-Busch Cos. Inc. Debentures 6.750% 12/15/27 25,000 22,462
22,462
Electric Utility (0.6%)
Public Service New Mexico 7.100% 08/01/05 25,000 24,066
Texas-New Mexico Power 6.250% 01/15/09 25,000 21,099
45,165
Energy (0.3%)
Union Pacific Resources Debentures 7.050% 05/15/18 25,000 22,295
22,295
Finance Company (0.9%)
Aristar, Inc. 7.250% 06/15/01 25,000 24,983
Ford Motor Credit Corp. Notes 7.750% 11/15/02 25,000 25,416
General Motors Acceptance Corp. Notes 5.850% 04/06/00 25,000 24,981
75,380
</TABLE>
54
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
AGGRESSIVE INVESTOR PORTFOLIO (continued)
December 31, 1999
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-Term Notes and Bonds (11.8%) (continued)
Corporate Obligations (3.6%) (continued)
Health Care (0.3%)
Beckman Coulter 7.450% 03/04/08 $ 25,000 $ 23,073
23,073
Other Finance (0.3%)
Osprey Trust 8.310% 01/15/03 25,000 24,839
24,839
Real Estate Investment Trust (REIT) (0.3%)
Simon Property Group, Inc. 6.750% 02/09/04 25,000 23,722
23,722
Telecommunications (0.6%)
GTE Corp. Debentures 6.940% 04/15/28 25,000 22,651
Sprint Capital Corp. 6.875% 11/15/28 25,000 22,218
44,869
Total corporate obligations 281,805
Total long-term notes and bonds (cost: $971,756) 918,361
Cash and Cash Equivalents (0.7%)
BONY Cash Reserve 57,281
Total cash and cash equivalents (cost: $57,281) 57,281
Total Investments (cost: $7,397,803) $ 7,810,329
</TABLE>
All investments are in United States enterprises.
The accompanying notes are an integral part of the financial statements.
55
<PAGE>
(This page is intentionally blank.)
56
<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), Conservative Investor Portfolio, Moderate Investor
Portfolio and Aggressive Investor Portfolio, hereinafter, referred to as
Portfolios. The Conservative Investor Portfolio, Moderate Investor Portfolio,
and Aggressive 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.
Investments
Securities traded on a national or international 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. AUL (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. Realized gains and losses are determined on
specific identification basis. Discounts and premiums on securities purchased
are amortized over the life of the respective securities.
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 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.
57
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
1. Summary of Significant Accounting Policies (continued)
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.
There are no outstanding forward foreign currency exchange contracts.
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.
Taxes
The fund qualifies as a regulated investment company under section M of the
Internal Revenue Code. The Funds policy is to distribute all net investment
income and realized capital gains to relieve it from all or substantially all
federal income taxes.
Dividend and Capital Gain Distributions
For the Money Market Portfolio, dividends from net investment income are
declared and paid daily. During 1999, for all other portfolios, dividends from
net investment income will be declared and paid annually. Distributions from net
realized gains on investments are declared and paid at least annually for all
portfolios.
The amounts of dividends from net investment income and of distributions from
net realized gains are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles. The
book/tax differences are either considered temporary or permanent in nature. To
the extent these differences are permanent in nature, such amounts are
reclassified within the composition of net assets based on their federal
tax-basis treatment; temporary differences do not require reclassification.
The following reclassifications have been made to increase/(decrease) such
accounts with offsetting adjustments made to capital.
Accumulated Accumulated
Undistributed Undistributed Net
Net Investment Realized Gain/(Loss)
Income/(Loss) on Investments
Bond 142,883 (142,883)
Tactical Asset Allocation 121,911 (121,911)
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 December 31, 1999, AULs investment at value in the Fund is:
Equity $ 4,971,701
Tactical Asset Allocation 606,212
Conservative Investor 5,073,000
Moderate Investor 5,244,500
Aggressive Investor 5,435,000
$ 21,324,413
The Fund has an investment advisory agreement with AUL to act as its investment
advisor. AUL has a sub-advisory agreement with Dean Investment Associates (Dean)
under which Dean acts as the Sub-Advisor to the Tactical Asset Allocation
Portfolio. AUL also has a sub-advisory agreement with Credit Suisse Asset
Management under which Credit Suisse Asset Management 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 expenses of the
Portfolios exceed 1% of the average daily net assets during the year. For the
year ended December 31, 1999, AULs investment advisory fee was reduced for the
Tactical Asset and LifeStyle Portfolios. To the extent that AUL has reduced its
advisory
58
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
2. Transactions with AUL (continued)
fees to prevent a Portfolios aggregate 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 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.
Under the Investment Advisory Agreement, the Investment Adviser is compensated
for its services by a monthly fee based on an annual percentage of the average
daily net assets of each Portfolio as follows:
Equity 0.50%
Money Market 0.40%
Bond 0.50%
Managed 0.50%
Tactical Asset Allocation 0.80%
Conservative Investor 0.70%
Moderate Investor 0.70%
Aggressive Investor 0.70%
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
total investment advisory fee incurred during the year ended December 31, 1999,
for all of the Portfolios was $1,719,050.
As a result of certain Portfolio expenses exceeding 1% of the average daily net
assets, AUL has reduced its investment advisory fee by:
1999 Previous Years Total
Tactical Asset Allocation $ 293 $ 11,951 $ 12,244
Conservative Investor 53,879 21,330 75,209
Moderate Investor 47,834 21,689 69,523
Aggressive Investor 51,581 20,889 72,470
$ 153,587 $ 75,859 $ 229,446
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.
59
<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 year ended December 31, 1999, were:
<TABLE>
<CAPTION>
Portfolio
<S> <C> <C> <C> <C> <C>
Equity Money Market Bond Managed Tactical Asset
Common Stock:
Purchases $ 28,357,995 $ 0 $ 0 $ 12,334,264 $ 2,541,434
Proceeds from sales 29,748,715 0 0 14,073,202 2,564,369
Corporate Bonds:
Purchases 0 0 16,458,410 4,321,349 1,159,827
Proceeds from sales 0 0 15,112,457 7,143,734 650,750
Government Bonds:
Purchases 0 0 32,030,785 17,514,731 598,635
Proceeds from sales 0 0 29,506,744 13,856,002 1,975,079
</TABLE>
<TABLE>
<CAPTION>
LifeStyle Portfolios
<S> <C> <C> <C>
Conservative Moderate Aggressive
Investor Investor Investor
Common Stock:
Purchases $ 2,036,271 $ 3,831,366 $ 4,807,949
Proceeds from sales 2,241,379 3,517,424 4,453,148
Corporate Bonds:
Purchases 523,290 348,860 174,430
Proceeds from sales 225,497 150,331 75,166
Government Bonds:
Purchases 1,570,425 1,485,227 885,669
Proceeds from sales 1,687,126 1,471,773 877,707
</TABLE>
5. Authorized Capital Shares
The Fund has 400,000,000 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 200,000,000
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
380,000,000
60
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
6. Net Assets
Net Assets at December 31, 1999, are:
<TABLE>
<CAPTION>
Portfolio
<S> <C> <C> <C> <C> <C>
Equity Money Market Bond Managed Tactical Asset
Proceeds from shares sold
and reinvested distributions $ 149,768,295 $ 567,900,367 $ 136,263,302 $ 120,106,467 $ 7,667,792
Cost of shares redeemed (64,975,674) (441,368,551) (84,026,002) (52,139,752) (2,683,749)
Undistributed net investment
income 1 0 142,295 37 122,697
Undistributed net realized
gain (loss) 1,928,478 0 (536,174) 738,835 (119,973)
Unrealized appreciation
(depreciation) 1,898,035 0 (2,016,071) 110,813 167,940
$ 88,619,135 $ 126,531,816 $ 49,827,978 $ 68,816,400 $ 5,154,707
</TABLE>
<TABLE>
<CAPTION>
LifeStyle Portfolios
<S> <C> <C> <C>
Conservative Moderate Aggressive
Investor Investor Investor
Proceeds from shares sold
and reinvested distributions $ 7,031,180 $ 7,973,022 $ 7,922,937
Cost of shares redeemed (641,504) (545,479) (706,120)
Undistributed net investment
income (69) (70) (97)
Undistributed net realized
gain 97,877 166,690 272,360
Unrealized appreciation
(depreciation) 19,157 217,806 412,526
$ 6,506,641 $ 7,811,969 $ 7,901,606
</TABLE>
61
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
7. Unrealized Appreciation (Depreciation)
Unrealized Appreciation (Depreciation) for tax purposes at December 31, 1999,
are:
<TABLE>
<CAPTION>
Portfolio
<S> <C> <C> <C> <C> <C>
Equity Money Market Bond Managed Tactical Asset
Appreciation $ 13,225,913 $ 0 $ 68,888 $ 6,337,148 $ 470,040
Depreciation (11,346,917) 0 (2,084,959) (6,233,428) (305,588)
$ 1,878,996 $ 0 $ (2,016,071) $ 103,720 $ 164,452
</TABLE>
<TABLE>
<CAPTION>
LifeStyle Portfolios
<S> <C> <C> <C>
Conservative Moderate Aggressive
Investor Investor Investor
Appreciation $ 520,493 $ 892,863 $ 1,215,329
Depreciation (515,352) (696,521) (823,224)
$ 5,141 $ 196,342 $ 392,105
</TABLE>
The amount of losses recognized for financial reporting purposes in excess of
federal income tax reporting purposes, is as follows.
Equity $ 19,039
Managed 7,093
Tactical Asset Allocation 3,488
Conservative Investor 14,016
Moderate Investor 21,464
Aggressive Investor 20,421
62
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
8. Net Shareholders
Shares outstanding at December 31, 1999, are:
<TABLE>
<CAPTION>
Portfolio
<S> <C> <C> <C> <C> <C>
Equity Money Market Bond Managed Tactical Asset
AUL 309,609 0 0 0 50,001
Dean Investment Associates 0 0 0 0 50,000
AUL American Unit Trust 2,452,078 22,115,522 1,322,350 2,052,462 3,597
AUl Group Retirement Annuity
Separate Account I 0 0 0 0 0
AUL Group Retirement Annuity
Separate Account II 2,130,762 88,244,249 2,940,352 2,611,121 18,177
AUL American Individual
Unit Trust 605,143 13,536,991 621,439 679,943 303,382
AUL American Individual
Variable Annuity Unit Trust 7,416 2,068,285 27,733 17,861 0
AUL American Individual
Variable Life Unit Trust 13,646 566,769 28,925 9,030 0
5,518,654 126,531,816 4,940,799 5,370,417 425,157
</TABLE>
<TABLE>
<CAPTION>
LifeStyle Portfolios
<S> <C> <C> <C>
Conservative Moderate Aggressive
Investor Investor Investor
AUL 500,000 500,000 500,000
Dean Investment Associates 0 0 0
AUL American Unit Trust 21,603 30,258 17,413
AUl Group Retirement Annuity
Separate Account I 52,540 52,321 61,386
AUL Group Retirement Annuity
Separate Account II 67,147 162,183 148,148
AUL American Individual
Unit Trust 0 0 0
AUL American Individual
Variable Annuity Unit Trust 0 0 0
AUL American Individual
Variable Life Unit Trust 0 0 0
641,290 744,762 726,947
</TABLE>
63
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
9. Federal Tax Information (unaudited)
The accompanying table below details distributions from long-term capital gains
for the following funds for the year ended December 31, 1999.
Equity $ 14,811,396
Managed 7,046,650
Conservative Investor 139,389
Moderate Investor 91,170
Aggressive Investor 49,518
The following funds have capital loss carry forwards which are available to
offset future capital gains, if any.
Bond $ (536,174)
Tactical Asset Allocation (116,484)
64
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
The per share amounts are based on shares outstanding throughout the year.
Equity Portfolio
For years ended
<S> <C> <C> <C> <C> <C>
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1997 Dec. 31, 1996 Dec. 31, 1995
Per Share Data:
Investment Income $ 0.45 $ 0.48 $ 0.42 $ 0.39 $ 0.37
Expense 0.13 0.13 0.13 0.11 0.09
Net investment income 0.32 0.35 0.29 0.28 0.28
Net gain (loss) on investments (0.55) 1.23 4.64 2.44 2.12
Shareholder distributions:
Net investment income (0.32) (0.35) (0.30) (0.28) (0.27)
Realized gain (3.66) (1.99) (0.25) 0 (0.19)
Net increase (decrease) (4.21) (0.76) 4.38 2.44 1.94
Net asset value at
beginning of period 20.27 21.03 16.65 14.21 12.27
Net asset value at end of period $ 16.06 $ 20.27 $ 21.03 $ 16.65 $ 14.21
Ratio to average net assets:
Expenses 0.63% 0.62% 0.66% 0.70% 0.70%
Net investment income 1.54% 1.61% 1.52% 1.81% 2.08%
Total return (0.9%) 7.1% 29.6% 19.2% 19.5%
Portfolio turnover rate 32% 23% 9% 11% 10%
Shares outstanding 5,518,654 4,710,131 3,816,406 3,042,989 2,483,962
</TABLE>
The accompanying notes are an integral part of the financial statements.
65
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
The per share amounts are based on shares outstanding throughout the year.
Money Market Portfolio
For years ended
<S> <C> <C> <C> <C> <C>
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1997 Dec. 31, 1996 Dec. 31, 1995
Per Share Data:
Investment Income $ 0.06 $ 0.06 $ 0.06 $ 0.06 $ 0.06
Expense 0.01 0.01 0.01 0.01 0.01
Net investment income 0.05 0.05 0.05 0.05 0.05
Net gain (loss) on investments 0 0 0 0 0
Shareholder distributions:
Net investment income (0.05) (0.05) (0.05) (0.05) (0.05)
Realized gain 0 0 0 0 0
Net increase (decrease) 0 0 0 0 0
Net asset value at
beginning of period 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:
Expenses 0.55% 0.61% 0.66% 0.70% 0.73%
Net investment income 4.60% 4.82% 4.83% 4.64% 5.13%
Total return 4.6% 4.9% 4.9% 4.6% 5.1%
Portfolio turnover rate 0 0 0 0 0
Shares outstanding 126,531,816 82,055,253 55,756,942 40,227,475 24,290,006
</TABLE>
The accompanying notes are an integral part of the financial statements.
66
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
The per share amounts are based on shares outstanding throughout the year.
Bond Portfolio
For years ended
<S> <C> <C> <C> <C> <C>
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1997 Dec. 31, 1996 Dec. 31, 1995
Per Share Data:
Investment Income $ 0.68 $ 0.67 $ 0.67 $ 0.70 $ 0.75
Expense 0.07 0.07 0.07 0.08 0.08
Net investment income 0.61 0.60 0.60 0.62 0.67
Net gain (loss) on investments (0.74) 0.36 0.25 (0.39) 1.07
Shareholder distributions:
Net investment income (0.61) (0.60) (0.59) (0.63) (0.66)
Realized gain 0.00 (0.21) (0.23) (0.01) (0.01)
Net increase (decrease) (0.74) 0.15 0.03 (0.41) 1.07
Net asset value at
beginning of period 10.83 10.68 10.65 11.06 9.99
Net asset value at end of period $ 10.09 $ 10.83 $ 10.68 $ 10.65 $ 11.06
Ratio to average net assets:
Expenses 0.62% 0.62% 0.67% 0.71% 0.70%
Net investment income 5.68% 5.48% 5.53% 5.85% 6.28%
Total return (1.1%) 8.8% 7.9% 2.2% 17.8%
Portfolio turnover rate 93% 132% 107% 62% 55%
Shares outstanding 4,490,799 4,624,949 3,252,044 2,648,089 2,298,581
</TABLE>
The accompanying notes are an integral part of the financial statements.
67
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
The per share amounts are based on shares outstanding throughout the year.
Managed Portfolio
For years ended
<S> <C> <C> <C> <C> <C>
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1997 Dec. 31, 1996 Dec. 31, 1995
Per Share Data:
Investment Income $ 0.59 $ 0.61 $ 0.58 $ 0.53 $ 0.54
Expense 0.10 0.10 0.10 0.09 0.08
Net investment income 0.49 0.51 0.48 0.44 0.46
Net gain (loss) on investments (0.71) 0.79 2.34 1.01 1.62
Shareholder distributions:
Net investment income (0.50) (0.51) (0.48) (0.44) (0.46)
Realized gain (1.60) (0.99) (0.41) (0.03) (0.20)
Net increase (decrease) (2.32) (0.20) 1.93 0.98 1.42
Net asset value at
beginning of period 15.13 15.33 13.40 12.42 11.00
Net asset value at end of period $ 12.81 $ 15.13 $ 15.33 $ 13.40 $ 12.42
Ratio to average net assets:
Expenses 0.62% 0.62% 0.67% 0.70% 0.70%
Net investment income 3.25% 3.27% 3.27% 3.43% 3.86%
Total return (0.8%) 8.3% 21.0% 11.8% 19.1%
Portfolio turnover rate 49% 63% 27% 34% 35%
Shares outstanding 5,370,417 4,832,940 3,945,223 3,215,189 2,484,037
</TABLE>
The accompanying notes are an integral part of the financial statements.
68
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
The per share amounts are based on shares outstanding throughout the year.
Tactical Asset Allocation Portfolio
July 31, 1995
For years ended (commencement)
to
Dec. 31, 1999 Dec. 31, 1998 Dec. 31, 1997 Dec. 31, 1996 Dec. 31, 1995
<S> <C> <C> <C> <C> <C>
Per Share Data:
Investment Income $ 0.49 $ 0.47 $ 0.41 $ 0.39 $ 0.20
Expense 0.13 0.13 0.13 0.11 0.04
Net investment income 0.36 0.34 0.28 0.28 0.16
Net gain (loss) on investments (0.81) 0.58 1.75 1.38 0.49
Shareholder distributions:
Net investment income (0.36) (0.34) (0.28) (0.28) (0.16)
Realized gain 0.00 (0.09) (0.96) (0.17) (0.05)
Net increase (decrease) (0.81) 0.49 0.79 1.21 0.44
Net asset value at
beginning of period 12.93 12.44 11.65 10.44 10.00
Net asset value at end of period $ 12.12 $ 12.93 $ 12.44 $ 11.65 $ 10.44
Ratio to average net assets:
Expenses 0.99% 1.00% 1.00% 1.00% 1.00%
Expenses before expense
reduction 0.99% 1.01% 1.30% 1.06% 1.00%
Net investment income 2.78% 2.64% 2.24% 2.62% 3.70%
Total return** (3.1%) 7.2% 15.5% 15.7% 6.5%
Portfolio turnover rate 77% 41% 52% 25% 4%
Shares outstanding 425,157 500,212 357,897 184,046 109,147
</TABLE>
**Total return 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.
69
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS (continued)
The per share amounts are based on shares outstanding throughout the year.
Conservative Investor Portfolio Moderate Investor Portfolio
For year March 31, 1998 For year March 31, 1998
ended (commencement) ended (commencement)
Dec. 31, 1999 to Dec. 31, 1998 Dec. 31, 1999 to Dec. 31, 1998
<S> <C> <C> <C> <C>
Per Share Data:
Investment Income $ 0.44 $ 0.31 $ 0.36 $ 0.25
Expense 0.10 0.09 0.11 0.09
Net investment income 0.34 0.22 0.25 0.16
Net gain on investments 0.27 0.37 0.63 0.36
Shareholder distributions:
Net investment income (0.34) (0.22) (0.25) (0.16)
Realized gain (0.42) (0.07) (0.46) (0.04)
Net increase (decrease) (0.15) 0.30 0.17 0.32
Net asset value at
beginning of period 10.30 10.00 10.32 10.00
Net asset value at end
of period $ 10.15 $ 10.30 $ 10.49 $ 10.32
Ratio to average net assets:
Expenses 0.95% 0.95% 1.00% 0.94%
Expenses before expense
reduction 1.78% 1.35% 1.65% 1.34%
Net investment income 3.23% 2.21% 2.33% 1.62%
Total return** 5.8% 5.8% 8.2% 5.1%
Portfolio turnover rate 72% 82% 74% 60%
Shares outstanding 641,290 609,958 744,762 659,392
</TABLE>
**Total return 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.
70
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
The per share amounts are based on shares outstanding throughout the year.
Aggressive Investor Portfolio
For Year March 31, 1998
Ended (commencement)
Dec. 31, 1999 to Dec. 31, 1998
Per Share Data:
Investment Income $ 0.26 $ 0.18
Expense 0.10 0.09
Net investment income 0.16 0.09
Net gain (loss) on investments 1.09 0.41
Shareholder distributions:
Net investment income (0.16) (0.09)
Realized gain (0.59) (0.04)
Net increase (decrease) 0.50 0.37
Net asset value at
beginning of period 10.37 10.00
Net asset value at end
of period $ 10.87 $ 10.37
Ratio to average net assets:
Expenses 0.96% 0.95%
Expenses before expense
reduction 1.67% 1.34%
Net investment income 1.50% 0.94%
Total return** 11.7% 5.0%
Portfolio turnover rate 76% 50%
Shares outstanding 726,947 644,280
**Total return 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.
71
<PAGE>
(This page is intentionally blank)
72
<PAGE>
American United Life Insurance Company
P.O. Box 368
Indianapolis, Indiana 46206-0368
www.aul.com
P-12757B (1/00)
