AUL American Unit Trust
Semi-Annual Report
June 30, 1996
asxc
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
U.S. economic growth was stronger than expected during the first half of 1996.
We experienced an increase in new home sales, strong employment gains, falling
commodity prices, and continued moderate inflation.
Investment markets reacted in a mixed fashion to these events. Bond investors,
concerned that higher growth would ultimately create inflationary pressures,
pushed ten year bond yields up over 100 basis points. Higher interest rates
translated into declining bond prices and negative returns for portfolios
invested primarily in intermediate and longer maturity bonds.
The stock market, on the other hand, started off the year on a strong note,
continuing the remarkable advance which began during 1995. However, during
February, indications of faster than expected economic growth became unsettling
to equity investors who were undecided whether this increased growth would be
positive or negative for stocks. A strengthening economy suggests sustainable
profit growth. Yet higher interest rates could choke off business expansion,
thereby hindering future profits. As a result, the stock market remained in a
volatile trading range, as investors rotated rapidly from one investment theme
to another.
As we begin the second half of 1996, we are experiencing continued evidence of
economic strength. All eyes are focused on the Federal Reserve Board to see if
it feels compelled to move into a more restrictive policy stance to prevent
inflationary pressures. During July, Federal Reserve Chairman Alan Greenspan
announced that he expects the economy to moderate in the months ahead without
any intervention from the Federal Reserve. Moderating economic growth would
be positive for bond investors. Without inflationary fears, interest rates could
decline, causing bonds to appreciate.
In this extended bull market, equity investors are preoccupied with second
quarter earnings announcements and the possibility of higher interest rates,
causing extreme trading volatility from day to day. Stocks should continue to
benefit from the favorable supply/demand situation and the fact that the June
through December period is typically strong for stocks during Presidential
election years. However, with earnings momentum slowing and the direction of
interest rates still uncertain, equity investing should remain challenging
during the remainder of 1996.
James W. Murphy
Chairman of the Board of Directors and President
Indianapolis, Indiana
July 15, 1996<PAGE>
AUL American Unit Trust
statement of net assets
June 30, 1996
(unaudited)
Series Fund Fidelity
EquityMoney Market Bond Managed High Income Growth
Assets:
Investment at market
value $ 19,308,886 $ 4,596,042 $ 6,416,069 $
16,649,984 $ 7,743,673 $ 31,323,442
Net Assets $ 19,308,886 $ 4,596,042 $ 6,416,069 $ 16,649,984 $
7,743,673 $ 31,323,442
Units outstanding 10,008,280 3,799,913 4,128,579
9,680,502 5,653,062 18,905,634
Net Asset Value per unit $ 1.93 $ 1.21 $ 1.55 $
1.72 $ 1.37 $ 1.66
The accompanying notes are an integral part of the financial statements.<PAGE>
AUL American Unit Trust
statement of net assets (continued)
June 30, 1996
(unaudited)
Fidelity TCI
Overseas Asset Manager Index 500Equity-Income Contrafund Growth
Assets:
Investment at market
value $ 9,507,716 $ 31,477,702 $ 10,352,917 $
3,296,402$ 3,385,838 $ 1,729,238
Net Assets $ 9,507,716 $ 31,477,702 $ 10,352,917 $
3,296,402 $ 3,385,838 $ 1,729,238
Units outstanding 7,195,106 24,760,232 6,579,579
2,561,623 2,486,368 1,323,471
Net Asset Value per unit $ 1.32 $ 1.27 $ 1.57 $
1.29 $ 1.36 $ 1.31
The accompanying notes are an integral part of the financial statements.<PAGE>
AUL American Unit Trust
statement of net assets (continued)
June 30, 1996
(unaudited)
Alger Calvert T. Rowe Price
American Capital
Growth Accumulation Equity Income
Assets:
Investment at market
value $ 5,058,674 $ 790,581 $ 2,559,192
Net Assets $ 5,058,674 $ 790,581 $ 2,559,192
Units outstanding 3,796,762 578,138 1,945,995
Net Asset Value per unit $ 1.33 $ 1.37 $ 1.32
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 six months ended June 30, 1996 and 1995
(unaudited)
Series Fund
Equity Money Market Bond
1996 1995 1996 1995 1996 1995
Operations:
Dividend income $ 77,609 $ 140,982 $ 85,943 $
39,137 $ 182,790 $ 135,406
Mortality & expense
charges 112,384 80,453 22,774 9,094
37,494 25,456
Net Investment Income
(Expense) (34,775) 60,529 63,169
30,043 145,296 109,950
Gain (Loss) on Investments:
Net realized gain (loss) 361,881 113,181
(30,935) (20,790)
Net unrealized gain (loss) 1,008,499 1,148,602
(285,692) 303,693
Net Gain (Loss) 1,370,380 1,261,783
(316,627) 282,903
Increase (Decrease) 1,335,605 1,322,312 63,169
30,043 (171,331) 392,853
Contract Owner Transactions:
Proceeds from units sold 2,818,244 2,771,139 9,470,266
1,844,204 1,489,617 814,624
Cost of units redeemed (1,557,705) (786,896)
(7,394,780) (1,301,581) (682,530) (268,902)
Increase 1,260,539 1,984,243 2,075,486 542,623
807,087 545,722
Net increase 2,596,144 3,306,555 2,138,655 572,666
635,756 938,575
Net Assets, beginning 16,712,742 11,341,937 2,457,387
1,239,527 5,780,313 3,631,844
Net Assets, ending $ 19,308,886 $ 14,648,492 $ 4,596,042 $
1,812,193 $ 6,416,069 $ 4,570,419
Units sold 1,506,411 1,772,941 7,898,458 1,592,418
953,466 560,778
Units redeemed (830,353) (499,224) (6,165,038) (1,122,994)
(438,370) (183,489)
Net increase 676,058 1,273,717 1,733,420 469,424
515,096 377,289
Units outstanding, beginning 9,332,222 7,471,155 2,066,493
1,083,828 3,613,483 2,640,900
Units outstanding, ending 10,008,280 8,744,872 3,799,913
1,553,252 4,128,579 3,018,189
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 six months ended June 30, 1996 and 1995
(unaudited)
Series Fund Fidelity
Managed High Income Growth
1996 1995 1996 1995 1996 1995
Operations:
Dividend income $ 128,519 $ 259,966 $ 559,290 $
245,640 $ 1,686,076 $ 61,007
Mortality & expense
charges 99,913 76,681 42,680
24,201 167,192 79,659
Net Investment Income
(Expense) 28,606 183,285 516,610
221,439 1,518,884 (18,652)
Gain (Loss) on Investments:
Net realized gain (loss) 119,199 25,809 61,544
(44,588) 1,075,811 16,364
Net unrealized gain (loss) 381,916 1,066,248 (146,641)
233,631 (86,600) 2,872,038
Net Gain (Loss) 501,115 1,092,057 (85,097)
189,043 989,211 2,888,402
Increase (Decrease) 529,721 1,275,342 431,513
410,482 2,508,095 2,869,750
Contract Owner Transactions:
Proceeds from units sold 1,962,158 1,816,725 2,165,969
1,289,297 9,771,231 4,343,043
Cost of units redeemed (1,226,618) (968,496)
(917,161) (270,801) (3,489,002) (895,599)
Increase 735,540 848,229 1,248,808
1,018,496 6,282,229 3,447,444
Net increase 1,265,261 2,123,571 1,680,321 1,428,978
8,790,324 6,317,194
Net Assets, beginning 15,384,723 11,526,729 6,063,352
3,250,024 22,533,118 10,413,751
Net Assets, ending $ 16,649,984 $ 13,650,300 $ 7,743,673 $
4,679,002 $ 31,323,442 $ 16,730,945
Units sold 1,160,152 1,224,341 1,618,257 1,121,891
6,174,921 3,562,883
Units redeemed (721,670) (659,811) (685,123) (237,707)
(2,235,893) (732,897)
Net increase 438,482 564,530 933,134 884,184
3,939,028 2,829,986
Units outstanding, beginning 9,242,020 8,146,956 4,719,928
3,013,462 14,966,606 9,247,290
Units outstanding, ending 9,680,502 8,711,486 5,653,062
3,897,646 18,905,634 12,077,276
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 six months ended June 30, 1996 and 1995
(unaudited)
Fidelity
Overseas Asset Manager Index 500
1996 1995 1996 1995 1996 1995
Operations:
Dividend income $ 195,921 $ 42,737 $ 1,858,564 $
447,091 $ 270,229 $ 42,514
Mortality & expense
charges 53,902 36,684 184,317
139,260 49,516 16,728
Net Investment Income
(Expense) 142,019 6,053 1,674,247
307,831 220,713 25,786
Gain (Loss) on Investments:
Net realized gain (loss) 273,294 (15,086) 71,760
(196,100) 430,177 42,462
Net unrealized gain (loss) 149,948 246,175 (255,856)
1,113,680 30,836 404,924
Net Gain (Loss) 423,242 231,089 (184,096)
917,580 461,013 447,386
Increase (Decrease) 565,261 237,142 1,490,151
1,225,411 681,726 473,172
Contract Owner Transactions:
Proceeds from units sold 4,512,767 2,418,751 5,114,433
4,462,290 5,443,597 1,277,466
Cost of units redeemed (3,471,909) (1,584,391)
(2,851,184) (2,038,225) (1,489,440) (410,833)
Increase 1,040,858 834,360 2,263,249 2,424,065
3,954,157 866,633
Net increase 1,606,119 1,071,502 3,753,400 3,649,476
4,635,883 1,339,805
Net Assets, beginning 7,901,597 5,424,635 27,724,302
20,452,233 5,717,034 2,086,818
Net Assets, ending $ 9,507,716 $ 6,496,137 $ 31,477,702 $
24,101,709 $ 10,352,917 $ 3,426,623
Units sold 3,518,827 2,129,739 4,118,038 4,181,084
3,581,047 1,081,231
Units redeemed (2,709,240) (1,384,287) (2,289,369) (1,892,288)
(978,150) (340,858)
Net increase 809,587 745,452 1,828,669 2,288,796
2,602,897 740,373
Units outstanding, beginning 6,385,519 4,748,284 22,931,563
19,540,376 3,976,682 1,966,816
Units outstanding, ending 7,195,106 5,493,736 24,760,232
21,829,172 6,579,579 2,707,189
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 six months ended June 30, 1996 and 1995
(unaudited)
Fidelity TCI
Equity-Income Contrafund Growth
1996 1995(1) 1996 1995(1) 1996 1995
Operations:
Dividend income $ 57,407 $ $ 11,446 $
$ 158,096 $ 294
Mortality & expense
charges 12,845 14 12,985
8,600 2,088
Net Investment Income
(Expense) 44,562 (14) (1,539)
149,496 (1,794)
Gain (Loss) on Investments:
Net realized gain (loss) 32,190 19,899
42,990 626
Net unrealized gain (loss) (12,560) (363) 128,406
14 (187,560) 64,644
Net Gain (Loss) 19,630 (363) 148,305 14
(144,570) 65,270
Increase (Decrease) 64,192 (377) 146,766
14 4,926 63,476
Contract Owner Transactions:
Proceeds from units sold 2,826,473 52,659 2,783,437
100 868,263 154,297
Cost of units redeemed (526,481) (7) (420,105)
(113,692) (1,957)
Increase 2,299,992 52,652 2,363,332 100
754,571 152,340
Net increase 2,364,184 52,275 2,510,098 114
759,497 215,816
Net Assets, beginning 932,218 875,740
969,741 254,724
Net Assets, ending $ 3,296,402 $ 52,275 $ 3,385,838
$ 114 $ 1,729,238 $ 470,540
Units sold 2,209,889 48,981 2,112,174 100
661,698 143,159
Units redeemed (410,398) (7) (317,784)
(86,006) (1,807)
Net increase 1,799,491 48,974 1,794,390 100
575,692 141,352
Units outstanding, beginning 762,132 691,978
747,779 254,316
Units outstanding, ending 2,561,623 48,974 2,486,368
100 1,323,471 395,668
(1) for the period from March 31, 1995 through June 30, 1995
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 six months ended June 30, 1996 and 1995
(unaudited)
Alger Calvert T. Rowe Price
American GrowthCaptial Accumulation Equity-Income
1996 1995(1) 1996 1995(1) 1996 1995(1)
Operations:
Dividend income $ 118,973 $ 1 $ $
$ 30,193 $ 1
Mortality & expense
charges 19,913 (2,527)
8,794
Net Investment Income
(Expense) 99,060 1 (2,527)
21,399 1
Gain (Loss) on Investments:
Net realized gain (loss) 95,965 64,038
21,206
Net unrealized gain (loss) (95,442) 17 (22,691)
14 37,201 5
Net Gain (Loss) 523 17 41,347 14
58,407 5
Increase (Decrease) 99,583 18 38,820
14 79,806 6
Contract Owner Transactions:
Proceeds from units sold 5,699,220 185 2,570,945
100 2,235,097 100
Cost of units redeemed (2,035,502)
(1,909,106) (233,782)
Increase 3,663,718 185 661,839 100
2,001,315 100
Net increase 3,763,301 203 700,659 114
2,081,121 106
Net Assets, beginning 1,295,373 89,922
478,071
Net Assets, ending $ 5,058,674 $ 203 $ 790,581 $
114 $ 2,559,192 $ 106
Units sold 4,300,426 174 1,859,258 100
1,739,653 100
Units redeemed (1,532,503) (1,352,153)
(182,390)
Net increase 2,767,923 174 507,105 100
1,557,263 100
Units outstanding, beginning 1,028,839 71,033
388,732
Units outstanding, ending 3,796,762 174 578,138
100 1,945,995 100
(1) for the period from March 31, 1995 through June 30, 1995
The accompanying notes are an integral part of the financial
statements.<PAGE>
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 June 28,
1996. 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 six
months ended June 30, 1996 and 1995, were $835,837 and $490,318, 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 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 six months ended June 30, 1996 and 1995, were
$104,118 and $63,067, 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 six months ended June 30, 1996 and 1995, were $93,275 and $44,160,
respectively.<PAGE>
notes to financial statements (continued)
3.Net Asset Value per Unit
The change in the Net Asset Value per unit for the six months ended June 30,
1996, is:
6/30/96 12/31/95 Change
Series Fund:
Equity $ 1.928931 $ 1.790413 7.7%
Money Market 1.209279 1.188967 1.7%
Bond 1.553849 1.599503 2.9%
Managed 1.719531 1.664334 3.3%
Fidelity:
High Income 1.369683 1.284533 6.6%
Growth 1.656561 1.505375 10.0%
Overseas 1.321307 1.237371 6.8%
Asset Manager 1.271154 1.208903 5.1%
Index 500 1.573327 1.437483 9.5%
Equity-Income 1.286817 1.223147 5.2%
Contrafund 1.361708 1.265540 7.6%
TCI:
Growth 1.306559 1.296724 0.8%
Alger:
American Growth 1.332341 1.259033 5.8%
Calvert:
Capital Accumulation 1.367417 1.265873 8.0%
T. Rowe Price:
Equity Income 1.315042 1.229793 6.9%<PAGE>
notes to financial statements (continued)
4. Cost of Investments
Series Fund:
Equity $ 16,709,090
Money Market 4,596,042
Bond 6,497,059
Managed 15,377,073
Fidelity:
High Income 7,394,177
Growth 28,174,797
Overseas 8,914,535
Asset Manager 29,139,020
Index 500 9,498,504
Equity-Income 3,277,147
Contrafund 3,254,464
TCI:
Growth 1,830,870
Alger:
American Growth 5,161,157
Calvert:
Capital Accumulation 816,629
T. Rowe Price:
Equity Income 2,508,660
5. Net Assets
Series Fund Fidelity
EquityMoney Market Bond Managed High Income Growth
Proceeds from units sold $ 20,839,277 $ 19,115,182 $ 8,192,214 $
18,205,643 $ 8,701,049 $ 34,591,078
Cost of units redeemed (6,223,975) (14,679,086) (2,284,820)
(4,620,684) (2,092,073) (10,164,525)
Net investment income 1,125,639 159,946 683,874
1,465,930 783,732 1,480,296
Net realized gain (loss) 968,149 (94,210)
326,184 1,469 2,267,948
Unrealized gain (loss) 2,599,796 (80,989)
1,272,911 349,496 3,148,645
$ 19,308,886 $ 4,596,042 $ 6,416,069 $
16,649,984 $ 7,743,673 $ 31,323,442
Fidelity TCI
Overseas Asset Manager Index 500Equity-Income Contra Growth
Proceeds from units sold $ 15,356,748 $ 37,262,019 $ 11,351,864 $
3,722,132 $ 3,686,054 $ 1,834,609
Cost of units redeemed (6,909,149) (9,924,505) (2,726,423)
(531,806) (458,308) (219,157)
Net investment income 65,065 2,062,886 216,588
47,692 6,491 142,583
Net realized gain (loss) 401,871 (261,379) 656,476
39,129 20,228 72,835
Unrealized gain (loss) 593,181 2,338,681 854,412
19,255 131,373 (101,632)
$ 9,507,716 $ 31,477,702 $ 10,352,917 $
3,296,402 $ 3,385,838 $ 1,729,238
Alger Calvert T. Rowe Price
American Capital
Growth Accumulation Equity Income
Proceeds from units sold $ 7,104,524 $ 2,672,172 $ 2,701,090
Cost of units redeemed (2,133,674) (1,921,934) (245,475)
Net investment income 96,676 2,042 24,529
Net realized gain (loss) 93,631 64,349 28,516
Unrealized gain (loss) (102,483) (26,048) 50,532
$ 5,058,674 $ 790,581 $ 2,559,192
<PAGE>
American United Life Insurance Company
P.O. Box 368
Indianapolis, Indiana 46206-0368
P-13972
