AUL American Unit Trust
Annual Report
December 31, 1995<PAGE>
asxc
<PAGE>
This report may be used as sales literature only when accompanied
or preceded by
effective prospectuses of AUL American Series Fund, Inc. and AUL American Unit
Trust, which relate sales expense and other pertinent information.<PAGE>
A Message
From
The Chairman of the Board
and President of
AUL American Series Fund, Inc.
To Participants in AUL American Unit Trust<PAGE>
Last year was a spectacular year for the equity and bond markets.
Domestic stocks
were driven by modest economic growth, low inflation, declining interest
rates andprofit expansion. Meanwhile, baby boomers helped contribute to
the market surge by investing in retirement products. Near the end of 1995,
the stock market cheered as the Federal Reserve lowered short-term interest
rates, thereby providing an extra boost to the economy during 1996.
Although 1995 was an impressive year for equities, the stock market
became highly rotational as investors shifted rapidly from one sector to
another during the year. This meant that if an investor did not keep
rotating from sector to sector with perfect
timing, his or her performance would have lagged the overall market.
The bond market also enjoyed a solid performance in 1995 following
one of the worst years ever in 1994. Yields declined dramatically at every
point on the yield curve resulting in double digit returns for most bond
funds. Aggressive buying by bond investors in 1995 was fueled by prospects
for a reduction in the federal deficit, signs of economic weakness, moderate
inflation, and the likelihood of more easing by the Federal Reserve.
Now in the fifth year of an economic expansion, economists are projecting
this trend will continue into 1996. The Federal Reserve has been successful
at keeping
inflationary pressures in check during this prolonged expansion. Interest
rates could decline during 1996, but the move will be much smaller than in
1995. Corporate profits should continue to expand, but the rate of earnings
growth is expected to decline.
After experiencing such a phenomenal year in 1995, equity investors have
become complacent with above average returns. However, it is not likely
that 1996 will be a repeat of 1995's banner year. Achieving double digit
bond performance may also be difficult given today's much lower level of
interest rates. Yet bonds could still perform well if this low inflation,
low growth, low interest rate scenario persists
throughout 1996.
<PAGE>
James W. Murphy
Chairman of the Board of Directors and President
<PAGE>
Indianapolis, Indiana
January 19, 1996<PAGE>
(This page is intentionally blank.)
<PAGE>
Report of Independent Accountants
The Contract Owners and
Board of Directors
American United Life Insurance Company
We have audited the accompanying statement of net assets of AUL American Unit
Trust as of December 31, 1995, and the related statement of operations and
changes in net assets for each of the two years in the period then ended.
These financial statements are the responsibility of the Trust's management.
Our responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits in accordance with generally
accepted auditing standards. Those standards 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.Our procedures included
confirmation of securities owned as of December 31, 1995, by correspondence
with the custodian. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of AUL American Unit Trust
as of December 31, 1995, and the results of its operations and changes in
net assets for each of the two years then ended, in conformity with generally
accepted accounting principles.
Indianapolis, Indiana
January 27, 1996
<PAGE>
AUL American Unit Trust
statement of net assets
December 31, 1995<PAGE>
Series Fund Fidelity
EquityMoney Market Bond Managed High Income Growth
Assets:
Investment at market
value $16,792,178 $ 2,457,387 $5,780,313 $ 15,384,723 $6,063,352
$ 22,533,118
Receivable for units
sold, net
Liabilities:
Payable for units
redeemed, net 79,436
Net Assets $ 16,712,742 $2,457,387 $5,780,313 $ 15,384,723 $ 6,063,352
$ 22,533,118
Units outstanding 9,332,222 2,066,493 3,613,483 9,242,020 4,719,928
14,966,606
Net Asset Value per unit $ 1.79 $ 1.19 $ 1.60 $1.66 $ 1.28
$ 1.51
<PAGE>
The accompanying notes are an integral part of the
financial statements.<PAGE>
AUL American Unit Trust
statement of net assets (continued)
December 31, 1995<PAGE>
Fidelity TCI
Overseas Asset Manager Index 500 Equity-Income Contrafund
Growth
Assets:
Investment at market
value$7,901,597 $27,724,302 $5,717,034 $932,218 $ 875,740
$ 969,741
Receivable for units
sold, net
Liabilities:
Payable for units
redeemed, net
Net Assets $7,901,597 $ 27,724,302 $5,717,034 $932,218 $875,740
$ 969,741
Units outstanding 6,385,519 22,931,563 3,976,682 762,132 691,978
747,779
Net Asset Value per unit $1.24 $1.21 $1.44 $1.22 $1.27 $1.30
<PAGE>
The accompanying notes are an integral part of the
financial statements.<PAGE>
AUL American Unit Trust
statement of net assets (continued)
December 31, 1995<PAGE>
Alger Calvert T. Rowe Price
American Capital
Growth Accumulation Equity Income
Assets:
Investment at market
value $ 1,217,172 $ 89,922 $ 478,071
Receivable for units
sold, net 78,201
Liabilities:
Payable for units
redeemed, net
Net Assets $ 1,295,373 $ 89,922 $ 478,071
Units outstanding 1,028,839 71,033 388,732
Net Asset Value per unit $ 1.26 $ 1.27 $ 1.23
<PAGE>
The accompanying notes are an integral part of the
financial statements.<PAGE>
AUL American Unit Trust
statement of operations and changes in net assets
for the two years ended December 31, 1995 and 1994<PAGE>
Series Fund
Equity Money Market Bond
1995 1994 1995 1994 1995 1994
Operations:
Dividend income $ 484,382 $ 631,246 $ 90,815 $ 32,715 $ 295,780
$ 189,470
Mortality & expense
charges 180,862 113,710 21,626 11,097 56,947
37,625
Net Investment Income
(Expense) 303,520 517,536 69,189 21,618 238,833
151,845
Gain (Loss) on Investments:
Net realized gain (loss) 340,866 193,546 (41,640)
(36,336)
Net unrealized gain (loss) 1,723,846 (600,001) 478,688
(246,365)
Net Gain (Loss) 2,064,712 (406,455) 437,048
(282,701)
Increase (Decrease) 2,368,232 111,081 69,189 21,618 675,881
(130,856)
Contract Owner Transactions:
Proceeds from units sold 5,109,255 5,402,074 6,141,734 2,529,829
2,165,809 2,230,383
Cost of units redeemed 2,106,682) (1,127,603) (4,993,063) (1,774,447)
(693,221) (643,942)
Increase 3,002,573 4,274,471 1,148,671 755,382 1,472,588
1,586,441
Net increase 5,370,805 4,385,552 1,217,860 777,000
2,148,469 1,455,585
Net Assets, beginning 11,341,937 6,956,385 1,239,527 462,527
3,631,844 2,176,259
Net Assets, ending $16,712,742 $ 11,341,937 $ 2,457,387 $1,239,527
$ 5,780,313 $ 3,631,844
Units sold 3,111,938 3,569,318 5,234,868 2,239,882 1,429,982
1,595,083
Units redeemed (1,250,871) (743,137) (4,252,203) (1,569,571)
(457,399) (461,194)
Net increase 1,861,067 2,826,181 982,665 670,311 972,583
1,133,889
Units outstanding, beginning 7,471,155 4,644,974 1,083,828
413,517 2,640,900 1,507,011
Units outstanding, ending 9,332,222 7,471,155 2,066,493 1,083,828
3,613,483 2,640,900
<PAGE>
The accompanying notes are an integral part of the
financial statements.<PAGE>
AUL American Unit Trust
statement of operations and changes in net assets (continued)
for the two years ended December 31, 1995 and 1994<PAGE>
Series Fund Fidelity
Managed High Income Growth
1995 1994 1995 1994 1995 1994
Operations:
Dividend income$761,412 $616,959 $245,640 $108,344 $61,007
$ 196,573
Mortality & expense
charges 168,071 122,919 57,956 27,209 210,009
81,522
Net Investment Income
(Expense) 593,341 494,040 187,684 81,135 (149,002)
115,051
Gain (Loss) on Investments:
Net realized gain (loss) 87,452 71,648 (33,043) (29,008)
1,311,129 (127,135)
Net unrealized gain (loss) 1,471,188 (778,483) 608,211 (131,039)
3,092,171 103,896
Net Gain (Loss) 1,558,640 (706,835) 575,168 (160,047) 4,403,300
(23,239)
Increase (Decrease)2,151,981 (212,795) 762,852 (78,912)
4,254,298 91,812
Contract Owner Transactions:
Proceeds from units sold 3,348,132 5,995,772 2,876,963 2,959,579
13,359,280 9,114,490
Cost of units redeemed (1,642,119) (1,040,691) (826,487) (293,513)
(5,494,211) (1,127,343)
Increase 1,706,013 4,955,081 2,050,476 2,666,066 7,865,069
7,987,147
Net increase 3,857,994 4,742,286 2,813,328 2,587,154
12,119,367 8,078,959
Net Assets, beginning 11,526,729 6,784,443 3,250,024 662,870
10,413,751 2,334,792
Net Assets, ending$15,384,723 $11,526,729 $ 6,063,352 $3,250,024
$22,533,118 $10,413,751
Units sold 2,173,072 4,190,534 2,385,562 2,680,955 9,441,745 8,232,596
Units redeemed(1,078,007)(734,865)(679,096) (265,544) (3,722,429)(1,036,818)
Net increase1,095,065 3,455,669 1,706,466 2,415,411 5,719,316 7,195,778
Units outstanding, beginning 8,146,955 4,691,286 3,013,462 598,051 9,247,290
2,051,512
Units outstanding, ending 9,242,020 8,146,955 4,719,928 3,013,462 4,966,606
9,247,290
<PAGE>
The accompanying notes are an integral part of the
financial statements.
<PAGE>
AUL American Unit Trust
statement of operations and changes in net assets (continued)
for the two years ended December 31, 1995 and 1994<PAGE>
Fidelity
Overseas Asset Manager Index 500
1995 1994 1995 1994 1995 1994
Operations:
Dividend income $42,737 $8,118 $447,091 $449,113 $42,513 $ 1,510
Mortality & expense
charges 81,781 43,127 302,886 192,036 45,078 16,881
Net Investment Income
(Expense) (39,044) (35,009) 144,205 257,077 (2,565) (15,371)
Gain (Loss) on Investments:
Net realized gain (loss) 45,929 67,540 (258,733) (99,460) 229,280
(3,479)
Net unrealized gain (loss) 552,120 (154,567) 3,680,015 (1,334,665) 813,537
16,406
Net Gain (Loss)598,049 (87,027) 3,421,282 (1,434,125) 1,042,817
12,927
Increase (Decrease) 559,005 (122,036) 3,565,487 (1,177,048) 1,040,252
(2,444)
Contract Owner Transactions:
Proceeds from units sold 5,043,833 4,791,590 8,354,917 17,106,981 3,753,742
1,619,615
Cost of units redeemed (3,125,876) (235,643)(4,648,335)(2,095,783)(1,163,778)
(72,191)
Increase 1,917,957 4,555,947 3,706,582 15,011,198 2,589,964
1,547,424
Net increase 2,476,962 4,433,911 7,272,069 13,834,150 3,630,216
1,544,980
Net Assets, beginning 5,424,635 990,724 20,452,233 6,618,083 2,086,818
541,838
Net Assets, ending$7,901,597 $5,424,635 $27,724,302 $20,452,233 $5,717,034
$ 2,086,818
Units sold 4,294,825 4,077,597 7,530,175 15,624,376 2,896,935
1,528,425
Units redeemed (2,657,590) (201,561) (4,138,988) (1,943,607) (887,069)
(68,805)
Net increase 1,637,235 3,876,036 3,391,187 13,680,769 2,009,866
1,459,620
Units outstanding, beginning4,748,284 872,248 19,540,376 5,859,607
1,966,816 507,196
Units outstanding, ending 6,385,519 4,748,284 22,931,563 19,540,376
3,976,682 1,966,816
The accompanying notes are an integral part of the
financial statements.
AUL American Unit Trust
statement of operations and changes IN net assets (continued)
for the two years ended December 31, 1995 and 1994
Fidelity TCI Alger Calvert
American Capital
Equity-Income Contrafund Growth Growth Accumulation
1995(1) 1995(1) 1995 1994(2) 1995(1) 1995(1)
Operations:
Dividend income $4,945 $9,771 $294 $ $1 $ 4,737
Mortality & expense
charges 1,815 1,740 6,369 837 2,385 168
Net Investment Income
(Expense) 3,130 8,031 (6,075) (837) (2,384) 4,569
Gain (Loss) on Investments:
Net realized gain (loss) 6,939 330 30,332 (487) (2,334) 311
Net unrealized gain (loss) 31,816 2,967 83,561 2,366 (7,041) (3,357)
Net Gain (Loss) 38,755 3,297 113,893 1,879 (9,375) (3,046)
Increase (Decrease)41,885 11,328 107,818 1,042 (11,759) 1,523
Contract Owner Transactions:
Proceeds from units sold 895,659 902,616 712,144 254,203 1,405,304 101,227
Cost of units redeemed(5,326)(38,204)(104,945)(521)(98,172)(12,828)
Increase 890,333 864,412 607,199 253,682 1,307,132 88,399
Net increase 932,218 875,740 715,017 254,724 1,295,373 89,922
Net Assets, beginning 254,724
Net Assets, ending$932,218 $875,740 $969,741 $254,724 $1,295,373 $ 89,922
Units sold 766,531 722,789 573,128 254,843 1,105,533 80,855
Units redeemed(4,399) (30,811) (79,665) (527) (76,694) (9,822)
Net increase 762,132 691,978 493,463 254,316 1,028,839 71,033
Units outstanding, beginning 254,316
Units outstanding, ending762,132 691,978 747,779 254,316 1,028,839 71,033
(1) for the period from March 31, 1995 through December 31, 1995
(2) for the period from March 31, 1994 through December 31, 1994
The accompanying notes are an integral part of the
financial statements.
AUL American Unit Trust
statement of operations and changes in net assets (continued)
for the two years ended December 31, 1995 and 1994<PAGE>
T. Rowe Price
Equity Income
1995(1)
Operations:
Dividend income $ 4,044
Mortality & expense
charges 915
Net Investment Income
(Expense) 3,129
Gain (Loss) on Investments:
Net realized gain (loss) 7,310
Net unrealized gain (loss) 13,332
Net Gain (Loss) 20,642
Increase (Decrease) 23,771
Contract Owner Transactions:
Proceeds from units sold 465,993
Cost of units redeemed (11,693)
Increase 454,300
Net increase 478,071
Net Assets, beginning
Net Assets, ending $ 478,071
Units sold 399,244
Units redeemed (10,512)
Net increase 388,732
Units outstanding, beginning
Units outstanding, ending 388,732
(1) for the period from March 31, 1995 through December 31, 1995
The accompanying notes are an integral part of the
financial statements.
(This page is intentionally blank.)
notes to financial statements
1. Summary of Significant Accounting Policies
The AUL American Unit Trust (Variable Account) was established by American
United Life Insurance Company (AUL) on August 17, 1989, under procedures
established by Indiana law and is registered as a unit investment trust under
the Investment Company Act of 1940, as amended. The Variable Account is a
segregated investment account for AUL and invests exclusively in shares of
mutual fund portfolios offered by the AUL American Series Fund, Inc. (Series
Fund), Fidelity Investments Variable Insurance Products Fund and Variable
Insurance Products Fund II(Fidelity), Twentieth Century (TCI), Alger
American Fund (Alger), Calvert Group (Calvert), and T. Rowe Price.
Security Valuation Transactions and Related Investment Income
The market value of investments is based on the closing bid prices at
December 29,1995. Investment transactions are accounted for on the trade date
and dividend income is recorded on the ex-dividend date.
Mortality and Expense Risks Charges
AUL deducts a daily charge as compensation for the mortality and expense risks
assumed by AUL. The charge is equal on an annual basis to 1.25% of the
average daily net assets of each investment account. AUL guarantees that the
mortality and expense charge shall not increase. The charges incurred during
the years ended December 31,1995 and 1994, were $1,138,607 and $646,962,
respectively.
Taxes
Operations of the Variable Account are part of, and are taxed with, the
operations of AUL, which is taxed as a "life insurance company" under the
Internal Revenue Code. Under current law, investment income, including
realized and unrealized capital gains of the investment accounts, is not
taxed to AUL to the extent it is applied to increase
reserves under the contracts. The Variable Account has not been charged for
federal and state income taxes since none have been imposed.
Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the
reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
2. Account Charges
AUL may assess a premium tax charge based on premium taxes incurred.
Premium taxes currently range between 0% and 3.5%, but are subject to change
by governmental entities.
AUL deducts an annual administrative charge from each participant's account
which may not exceed to the lesser of 0.5% of the participant's account
value or $7.50 per quarter. The charge is assessed every quarter on a
participant account if it is in effect on
the quarterly contract anniversary, and the charge is assessed only during the
accumulation period. The charges incurred during the years ended December 31,
1995 and 1994, were $147,379 and $94,292, respectively.
AUL may assess a withdrawal charge on withdrawals that exceed 10% of the
participant's account value as of the last contract anniversary preceding
the request for the withdrawal. The amount of the charge depends upon the
number of account years the participant's account has been in existence, as
follows:
Account Year Withdrawal Charge
1 - 5 8%
6 - 10 4%
11 or more 0%
The aggregrate withdrawal charges will not exceed 9% of the contributions
made by or on behalf of a participant under a contract. The charges incurred
during the years ended December 31, 1995 and 1994, were $96,562 and $40,115,
respectively.
<PAGE>
notes to financial statements (continued)<PAGE>
3.Net Asset Value per Unit
The change in the Net Asset Value per unit for the year ended December 31,
1995, or from commencement of operations, March 31, 1995, through December 31,
1995, is:
12/31/95 12/31/94 Change
Series Fund:
Equity $ 1.790413 $ 1.517747 18.0%
Money Market 1.188967 1.143602 4.0%
Bond 1.599503 1.375142 16.3%
Managed 1.664334 1.414657 17.6%
Fidelity:
High Income 1.284533 1.078494 19.1%
Growth 1.505375 1.126078 33.7%
Overseas 1.237371 1.142408 8.3%
Asset Manager 1.208903 1.046650 15.5%
Index 500 1.437483 1.060991 35.5%
TCI:
Growth 1.296724 1.001591 29.5%
12/31/95 3/31/95 Change
Fidelity:
Equity-Income $ 1.223147 $1.000000 22.3%
Contrafund 1.265540 1.000000 26.6%
Alger:
American Growth 1.259033 1.000000 25.9%
Calvert:
Capital Accumulation 1.265873 1.000000 26.6%
T. Rowe Price:
Equity Income 1.229793 1.000000 23.0%
notes to financial statements (continued)
4. Cost of Investments
Series Fund:
Equity $15,200,881
Money Market 2,457,387
Bond 5,575,611
Managed 14,493,727
Fidelity:
High Income 5,567,215
Growth 19,297,874
Overseas 7,458,364
Asset Manager 25,129,765
Index 500 4,893,458
Equity-Income 900,403
Contrafund 872,773
TCI:
Growth $ 883,813
Alger:
American Growth 1,224,213
Calvert:
Capital Accumulation 93,279
T. Rowe Price:
Equity Income 464,739<PAGE>
5.
Net Assets
Series Fund Fidelity
Equity Money Market Bond Managed High Income Growth
Proceeds from units sold$18,021,034 $9,644,916 $6,702,598 $16,243,484
$ 6,535,081 $ 24,819,847
Cost of units redeemed(4,666,271) (7,284,306) (1,602,290) (3,394,067)
(1,174,912) (6,675,523)
Net investment income
(expense) 1,160,414 96,777 538,578 1,437,325
267,121 (38,587)
Net realized gain (loss) 606,268 (63,275) 206,985 (60,075)
1,192,137
Unrealized gain (loss) 1,591,297 204,702 890,996 496,137
3,235,244
$16,712,742 $2,457,387 $5,780,313 $15,384,723 $6,063,35 $ 22,533,118
Fidelity TCI
Overseas Asset Manager Index 500 Equity-Income Contra Growth
Proceeds from units sold $10,843,982 $32,147,586 $5,908,266 $ 895,659
$ 902,616 $ 966,347
Cost of units redeemed (3,437,241) (7,073,321) (1,236,983) (5,325)
(38,204) (105,466)
Net investment income
(expense) (76,954) 388,639 (4,124) 3,130 8,031 (6,913)
Net realized gain (loss) 128,577 (333,139) 226,299 6,939 330 29,845
Unrealized gain (loss) 443,233 2,594,537 823,576 31,815 2,967 85,928
$7,901,597 $27,724,302 $5,717,034 $932,218 $875,740 $969,741
Alger Calvert T. Rowe Price
American Capital
Growth Accumulation Equity Income
Proceeds from units sold $1,405,304 $101,227 $465,992
Cost of units redeemed (98,172) (12,828) (11,693)
Net investment income
(expense) (2,384) 4,569 3,130
Net realized gain (loss) (2,334) 311 7,310
Unrealized gain (loss) (7,041) (3,357) 13,332
$1,295,373 $89,922 $478,071
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American United Life Insurance Company
P.O. Box 368
Indianapolis, Indiana 46206-0368
SA-13118K
