FORM NSAR-U
SEMI-ANNUAL REPORT
FOR REGISTERED INVESTMENT COMPANIES
Report for six month period ending: / / (a)
or fiscal year ending: 12 / 31 / 1998 (b)
Is this a transition report?: (Y/N) N
--------
Is this an amendment to a previous filing? (Y/N) N
--------
Those items or sub-items with a box "**" after the item number should be
completed only if the answer has changed from the previous filing on this form.
1. A. Registrant Name: AUL American Unit Trust
B. File Number: 811-5929
C. Telephone Number: ( 317 ) 285-1877
2. A. Street: One American Square, P.O. Box 368
B. City: Indianapolis C. State: IN D. Zip Code:46206 Zip Ext:0368
E. Foreign Country: Foreign Postal Code:
3. Is this the first filing on this form by Registrant? (Y/N) N
4. Is this the last filing on this form by Registrant? (Y/N) N
5. Is Registrant a small business investment company (SBIC)? (Y/N) N
[If answer is "Y" (Yes), complete only items 89 through 110.
6. Is Registrant a unit investment trust (UIT)? (Y/N). Y
[If answer is "Y" (Yes) complete only items 111 through 132.]
7. A. Is Registrant a series or multiple portfolio company? (Y/N) N
[If answer is "N" (No), go to item 8.]
B. How many separate series or portfolios did Registrant have at the
end of the period?____________
SCREEN NUMBER: 01 PAGE NUMBER: 01 SEC2100 (S/90)
<PAGE>
For period ending 12/31/1998 If fling more then one
File number 811-5929 Page 2, "X" box: __
C. List the name of each series or portfolio and give a consecutive number to
each series or portfolio starting with the number 1. USE THIS SAME
NUMERICAL DESIGNATION FOR EACH SERIES OR PORTFOLIO IN THE SERIES INFORMATION
BLOCK IN THE TOP RIGHT CORNER OF THE SCREENS SUBMITTED IN THIS FILING AND IN
ALL SUBSEQUENT FILINGS ON THIS FORM. THIS INFORMATION IS REQUIRED EACH TIME
THE FORM IS FILED.
Is this the
Series last fling
Number Series Name for this series?
- ------ ----------- ----------------
1 (Y/N)
(NOTE: See item D(8) of the general instructions to the form for information on
how to complete the form for series companies.)
SCREEN NUMBER: 02 PACE NUMBER: 02 SEC2100 (5/90)
<PAGE>
For period ending 12/3l/1998 If filing more than one
File number 811-5929 Page 47, "X" box:___
UNIT INVESTMENT TRUSTS
111. A. ** Depositor Name:___________________________________________
B. ** File Number (If any):______________
C. ** City:_______ State: __________Zip Code:____ Zip Ext.:_____
** Foreign Country:____________ Foreign Postal Code:_________
111. A. ** Depositor Name:___________________________________________
B. ** File Number (If any):______________
C. ** City:_______ State: __________Zip Code:____ Zip Ext.:_____
** Foreign Country:____________ Foreign Postal Code:_________
112. A. ** Sponsor Name:_____________________________________________
B. ** File Number (If any):______________
C. ** City:_______ State: __________Zip Code:____ Zip Ext.:_____
** Foreign Country:____________ Foreign Postal Code:_________
112. A. ** Sponsor Name:_____________________________________________
B. ** File Number (If any):______________
C. ** City:_______ State: __________Zip Code:____ Zip Ext.:_____
** Foreign Country:____________ Foreign Postal Code:_________
SCREEN NUMBER: 55 PAGE NUMBER: 47 SEC2100 (5/90)
<PAGE>
For period ending 12/31/1998 If filing more than one
File number 811-5929 Page 48, "X" box: __
111. A.** Trustee Name:________________________________________________________
B.** City__________ State: __________ Zip Code:_______ Zip Ext.:________
** Foreign Country:____________________ Foreign Postal Code:____________
113. A.** Trustee Name:________________________________________________________
B.** City__________ State: __________ Zip Code:_______ Zip Ext.:________
** Foreign Country:____________________ Foreign Postal Code:____________
114. A.** Principal Underwriter Name:_________________________________________
B.** File Number: 8-_____________________________________________________
C.** City:___________ State:____________ Zip Code:________ Zip Ext.:_____
** Foreign Country: __________________ Foreign Postal Code:___________
114. A.** Principal Underwriter Name:_________________________________________
B.** File Number: 8-_____________________________________________________
C.** City:___________ State:____________ Zip Code:________ Zip Ext.:_____
** Foreign Country: __________________ Foreign Postal Code:___________
115. A.** Independent Public Accountant Name:
B.** City__________ State: __________ Zip Code:_______ Zip Ext.:________
** Foreign Country:____________________ Foreign Postal Code:____________
115. A.** Independent Public Accountant Name:
B.** City__________ State: __________ Zip Code:_______ Zip Ext.:________
** Foreign Country:____________________ Foreign Postal Code:____________
SCREEN NUMBER: 56 PAGE NUMBER:48 SEC2100(5/90)
<PAGE>
For period ending 12/31/1998 If filing more than one
File number 811-5929 Page 49, "X" box: __
116. Family of investment companies information:
A.** Is Registrant part of a family of investment companies? (Y/N)_________
(Y/N)
B.** Identify the family in 10 letters:__ __ __ __ __ __ __ __ __ __
(NOTE: In filing this form, use this identification
consistently for all investment companies in family. This
designation is for purposes of this form only.)
117. A.** Is Registrant a separate account of an insurance company?(Y/N)________
(Y/N)
If answer is "Y" (Yes), are any of the following types of contracts
funded by the Registrant?:
B.** Variable annuity contracts? (Y/N)_____________________________________
(Y/N)
C.** Scheduled premium variable life contracts? (Y/N)_____________________
(Y/N)
D.** Flexible premium variable life contracts? (Y/N)______________________
(Y/N)
E.** Other types of insurance products registered under the
Securities Act of 1933.______________________________________________
(Y/N)
118.** State the number of series existing at the end of the period that had
securities registered under the Securities Act of 1933 _______________
119.** State the number of new series for which registration statements under
the Securities Act of 1933 became effective during the period__________
120.** State the total value of the portfolio securities on the date of deposit
for the new series included in item 119 ($000's omitted)____ $__________
121.** State the number of series for which a current prospectus was in
existence at the end of the period _____________________________________
122.** State the number of existing series for which additional units were
registered under the Securities Act of 1933 during the current period___
SCREEN NUMBER: 57 PAGE NUMBER: 49 SEC2100(5/90)
<PAGE>
For period ending 12/31/1998 If filing more than one
File number 811-5929 Page 50 "X" box: __
123.** State the total value of the additional units considered in answering
item 122 ($000's omitted) _______________________________ $_____________
124.** State the total value of units of prior series that were placed in the
portfolios of subsequent series during the current period (the value
of these units is to be measured on the date they were placed in the
subsequent series)($000'S omitted) ______________________ $_____________
125.** State the total dollar amount of sales loads collected (before
reallowances to other brokers or dealers) by Registrant's principal
underwriter and any underwriter which is an affiliated person of the
principal underwriter during the current period solely from the
sale of units of all series of Registrant ($000's omitted).
$____________
126. Of the amount shown in item 125 state the total dollar amount of sales
loads collected from secondary market operations in Registrant's units
(include the sales loads, if any, collected on units of a prior series
placed in the portfolio of a subsequent series.) ($000's omitted).
$___________
127. List opposite the appropriate description below the number of series whose
portfolios are invested primarily (based upon a percentage of NAV) in each
type of security shown, the aggregate total assets at market value as of a
date at or near the end of the current period of each such group of
series and the total income distributions made by each such group of
series during the current period(excluding distributions of realized gains,
if any):
<TABLE>
<S> <C> <C> <C>
Number of Total AssetsTotal Income
Series $000's Distributions
Investing omitted 000s omitted
A.U.S. Treasury direct issue _____________ ______ $________ $___________
B.U.S Government agency ___________________ ______ $________ $___________
C.State and municipal tax-free_____________ ______ $________ $___________
D.Public utility debt _____________________ ______ $________ $___________
E.Brokers or dealers debt or debt of
brokers' or dealers' parent _____________ ______ $________ $___________
F.All other corporate intermed. & long-
term debt _______________________________ ______ $________ $___________
G.All other corporate short-term debt _____ ______ $________ $___________
H.Equity securities of brokers or dealers
or parents of brokers or dealers_________ ______ $________ $___________
I.Investment company equity securities_____ 1 $ 542,955 $___________
J.All other equity securities______________ ______ $________ $___________
K.Other securities_________________________ ______ $________ $___________
L.Total assets of all series of registrant_ ______ $ 542,955 $___________
</TABLE>
SCREEN NUMBER: 58 PAGE NUMBER: 50 SEC2100(5/90)
<PAGE>
For period ending 12/31/1998 If filing more than one
File number 811-5929 Page 51, "X" box: __
128.** Is the timely payment of principal and interest on any of the portfolio
securities held by any of Registrant's series at the end of the
current period insured or guaranteed by an entity other than the issuer?
(Y/N)_________________
[If answer is "N" (No), go to item 131.] Y/N
129.** Is the issuer of any instrument covered in item 128 delinquent or in
default as to payment of principal or interest at the end of the current
period?(Y/N)____________________________________________________________
[If answer is "N" (No), go to item 131.] Y/N
130.** In computations of NAV or offering price per unit, is any part of the
value attributed to instruments identified in item 129 derived from
insurance or guarantees? (Y/N)__________________________________________
Y/N
131. Total expenses incurred by all series of Registrant during the current
reporting period ($000's omitted) _______________________________ $5,223
132.** List the "811" (Investment Company Act of 1940) registration number for
all Series of Registrant that are being included in this filing:
811-____ 811-_____ 811-_____ 811-____ 811-____
811-____ 811-_____ 811-_____ 811-____ 811-____
811-____ 811-_____ 811-_____ 811-____ 811-____
811-____ 811-_____ 811-_____ 811-____ 811-____
811-____ 811-_____ 811-_____ 811-____ 811-____
811-____ 811-_____ 811-_____ 811-____ 811-____
811-____ 811-_____ 811-_____ 811-____ 811-____
811-____ 811-_____ 811-_____ 811-____ 811-____
811-____ 811-_____ 811-_____ 811-____ 811-____
SCREEN NUMBER: 59 PAGE NUMBER: 51 SEC2100 (5/90)
<PAGE>
This report is signed on behalf of the registrant in the City of Indianapolis,
State of Indiana, on the 18th day of February, 1999.
AUL AMERICAN UNIT TRUST
(Name of Registrant)
by:\s\ James W. Murphy witness: \s\ Richard A. Wacker
___________________ _____________________
James W. Murphy Richard A. Wacker
Chairman of the Board of Secretary to the Board
Directors and President, of Directors,
AUL American Series Fund AUL American Series Fund
Annual Report
for
AUL American Unit Trust
December 31, 1998
American United Life Insurance Company AUL
This report and the financial statements contained herein are for the general
information of the Participants. The report is not to be distributed to
prospective investors as sales literature unless accompanied or preceded by an
effective prospectus of AUL American Series Fund, Inc. and AUL American Unit
Trust, which contains further information concerning the sales charge, expenses
and other pertinent information.
Front Cover
<PAGE>
A Message
From
The Chairman of the Board
and President of
AUL American Series Fund, Inc.
To Participants in AUL American Unit Trust
The current economic expansion has been particularly impressive and is now
entering its eighth year, setting a new record as the longest period of
peacetime growth. This expansion has been unique in that it has been accompanied
by low inflation, low interest rates and low unemployment. At the same time,
positive consumer confidence has translated into greater consumer spending and
strong corporate profits have resulted in increased capital spending, both major
drivers to economic growth. However, the playing field changed dramatically
during the third quarter of 1998 when financial difficulties in Russia, Asia and
Latin America and losses incurred by several well-known hedge funds caused a
great deal of concern. In addition, the capital markets had to contend with a
possible credit crunch, increased antagonism with Iraq, and the threat of
political instability here at home.
The stock market experienced a marked downturn during the third quarter in
response to these concerns. To help alleviate market stress, the Federal Reserve
Board intervened on three occasions by cutting the federal funds rate a total of
75 basis points (0.75%). The Fed's actions, coupled with an easing of the global
concerns, provided renewed vigor for the stock market during the last three
months of the year.
Treasury yields declined sharply in the second half of the year as investors
around the world sought the safety and liquidity of U.S. government-backed,
dollar denominated securities. Yield declines for corporate bonds and
mortgage-backed securities, however, were much smaller. Investors were
particularly leery of smaller, less liquid bond issues, especially those backed
by lower quality credits.
At the present time, most economists are expecting U.S. economic growth to
decelerate in 1999. The slowdown in foreign economies has led to a decline in
demand for American-made products which results in a contraction in U.S.
exports. Generally, economists are also expecting consumer spending to ease and
the level of corporate fixed investments to decline. In such an environment, it
will be difficult for the stock market to achieve above average returns in the
coming year.
/S/James W. Murphy
James W. Murphy
Chairman of the Board of Directors and President
Indianapolis, Indiana
January 28, 1999
1
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2
<PAGE>
Report of Independent Accountants
The Contract Owners of
AUL American Unit Trust and
Board of Directors of
American United Life Insurance Company
In our opinion, the accompanying statements of net assets, and the related
statements of operations and of changes in net assets present fairly, in all
material respects, the financial position of AUL American Unit Trust at December
31, 1998, the results of its operations and changes in its net assets for each
of the two years in the period then ended, in conformity with generally accepted
accounting principles. 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 of these
financial statements in accordance with generally accepted auditing standards
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, 1998, by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
/S/PricewaterhouseCoopers, LLP
Indianapolis, Indiana
February 1, 1999
3
<PAGE>
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4
<PAGE>
AUL American Unit Trust
Statements of Net Assets
December 31, 1998
AUL American Series Fund
-------------------------------------------------------------------
Equity Money Market Bond Managed Tact. Asset
------------- ------------ ------------ ----------- ------------
Assets:
Investments
at value $ 41,104,938 $ 10,701,526 $ 12,935,764 $ 28,256,580 $ 42,098
Net Assets $ 41,104,938 $ 10,701,526 $ 12,935,764 $ 28,256,580 $ 42,098
Units
outstanding 14,376,727 8,101,398 7,003,232 12,020,235 35,796
Accumulation
Unit Value $ 2.86 $ 1.32 $ 1.85 $ 2.35 $ 1.18
AUL American Series Fund Fidelity
----------------------------------------- ------------------------
Conservative Moderate Aggressive
Investor Investor Investor High Income Growth
------------- ------------ ------------ ------------ ----------
Assets:
Investments
at value $ 101,257 $ 191,667 $ 144,128 $ 17,770,667 $ 92,949,615
Net Assets $ 101,257 $ 191,667 $ 144,128 $ 17,770,667 $ 92,949,615
Units
outstanding 96,638 184,334 138,936 11,188,244 32,435,920
Accumulation
Unit Value $ 1.05 $ 1.04 $ 1.04 $ 1.59 $ 2.86
The accompanying notes are an integral part of the financial statements
5
<PAGE>
AUL American Unit Trust
Statements of Net Assets (continued)
December 31, 1998
Fidelity
-------------------------------------------------------------------
Overseas Asset Manager Index 500 Equity-Income Contrafund
----------- -------------- ---------- -------------- ----------
Assets:
Investments
at value $ 17,155,975 $ 68,757,041 $ 88,619,796 $ 18,381,333 $ 31,401,748
Net Assets $ 17,155,975 $ 68,757,041 $ 88,619,796 $ 18,381,333 $ 31,401,748
Units
outstanding 10,099,671 37,109,026 30,592,950 9,537,700 13,160,702
Accumulation
Unit Value $ 1.70 $ 1.85 $ 2.90 $ 1.93 $ 2.39
American Cent. Alger Calvert T Rowe Price PBHG
------------- ------------- ------------- ------------- -----------
VP Capital American Social Mid-Cap
Appreciation Growth Growth Equity Income Growth II
------------- ------------- ------------- ------------- -----------
Assets:
Investments
at value $ 2,157,239 $ 41,675,291 $ 4,797,736 $ 37,980,070 $ 470,219
Net Assets $ 2,157,239 $ 41,675,291 $ 4,797,736 $ 37,980,070 $ 470,219
Units
outstanding 1,905,162 16,282,040 2,283,661 19,081,441 412,873
Accumulation
Unit Value $ 1.13 $ 2.56 $ 2.10 $ 1.99 $ 1.14
The accompanying notes are an integral part of the financial statements
6
<PAGE>
AUL American Unit Trust
Statements of Net Assets (continued)
December 31, 1998
PBHG Janus Safeco
------------- -------------------------- ------------------------
Technology & Worldwide Flexible
Communications Growth Income Equity Growth
------------- ------------ ------------ ------------ ----------
Assets:
Investments
at value $ 288,557 $ 12,133,125 $ 2,580,571 $ 2,913,292 $ 9,444,623
Net Assets $ 288,557 $ 12,133,125 $ 2,580,571 $ 2,913,292 $ 9,444,623
Units
outstanding 214,047 8,357,911 2,204,070 2,034,751 6,688,427
Accumulation
Unit Value $ 1.35 $ 1.45 $ 1.17 $ 1.43 $ 1.41
The accompanying notes are an integral part of the financial statements
7
<PAGE>
AUL American Unit Trust
Statements of Operations and Changes in Net Assets
for the years ended December 31, 1998 and 1997
AUL American Series Fund
-----------------------------------------------------------------------
Equity Money Market Bond
----------------------- ---------------------- ----------------------
1998 1997 1998 1997 1998 1997
----------- ---------- ---------- ---------- ---------- ----------
Operations:
Dividend
income $ 4,129,858 $ 788,183 $ 386,161 $ 286,404 $ 782,456 $ 579,827
Mortality
& expense
charges 473,604 355,069 100,713 73,604 129,862 104,776
Net Investment
Income
(Loss) 3,656,254 433,114 285,448 212,800 652,594 475,051
Gain (Loss) on Investments:
Net realized
gain
(loss) 3,608,786 1,929,622 0 0 254,972 100,116
Net change in
unrealized
appreciation
(deprec) (5,156,717) 4,385,719 0 0 (170,174) (88,037)
Net Gain
(Loss) (1,547,931) 6,315,341 0 0 84,798 12,079
Increase (Decrease)
In Net Assets from
Oper. 2,108,323 6,748,455 285,448 212,800 737,392 487,130
Contract Owner Transactions:
Proceeds
from units
sold 13,209,744 9,972,396 46,547,976 33,320,250 17,474,578 2,747,432
Cost of units
redeemed (8,168,235) (5,083,812 (43,481,629)(31,019,567)(13,767,123) (2,070,656)
Increase
(Decrease)5,041,509 4,888,584 3,066,347 2,300,683 3,707,455 676,776
Net increase
(decrease)7,149,832 11,637,039 3,351,795 2,513,483 4,444,847 1,163,906
Net Assets,
begin. 33,955,106 22,318,067 7,349,731 4,836,248 8,490,917 7,327,011
Net Assets,
ending $41,104,938 $33,955,106 $10,701,526 $ 7,349,731 $12,935,764 $ 8,490,917
========== ========== ========== ========== ========== ==========
Units
sold 4,750,246 4,078,308 35,822,473 26,576,977 9,671,190 1,664,142
Units
redeemed(2,959,555) (2,081,627)(33,485,508)(24,742,816) (7,605,386) (1,261,885)
Net increase
(decrease)1,790,691 1,996,681 2,336,965 1,834,161 2,065,804 402,257
Units outstanding,
begin. 12,586,036 10,589,355 5,764,433 3,931,272 4,937,428 4,535,171
Units outstanding,
ending 14,376,727 12,586,036 8,101,398 5,765,433 7,003,232 4,937,428
The accompanying notes are an integral part of the financial statements
8
<PAGE>
AUL American Unit Trust
Statements of Operations and Changes in Net Assets (continued)
for the years ended December 31, 1998 and 1997
AUL American Series Fund
-----------------------------------------------------------------------
Conservative Moderate
Managed Tactical Asset Investor Investor
----------------------- ---------------------- ---------- ----------
1998 1997 1998 1997(1) 1998(2) 1998(2)
----------- ---------- ---------- ---------- ---------- ----------
Operations:
Dividend
income $ 2,496,726 $ 1,251,403 $ 976 $ 8 $ 1,251 $ 1,722
Mortality
& expense
charges 325,915 265,574 175 0 0 154
Net Investment
Income
(Loss) 2,170,811 985,829 801 8 1,251 1,568
Gain (Loss) on Investments:
Net
realized
gain
(loss) 1,475,867 671,399 (115) 0 0 0
Net change in
unrealized
appreciation
(deprec.)(1,908,536) 2,073,656 (1,555) 3 1,439 4,839
Net Gain
(Loss) (432,669) 2,745,055 (1,670) 3 1,439 4,839
Increase (Decrease)
In Net Assets from
Oper. 1,738,142 3,730,884 (869) 11 2,690 6,407
Contract Owner Transactions:
Proceeds
from units
sold 7,792,884 4,647,229 43,804 100 98,567 185,260
Cost of units
redeemed (5,039,746) (3,155,198) (949) 0 0 0
Increase
(Decrease)2,753,138 1,492,031 42,855 100 98,567 185,260
Net increase
(decrease)4,491,280 5,222,915 41,987 111 101,257 191,667
Net Assets,
begin. 23,765,300 18,542,385 111 0 0 0
Net Assets,
ending $28,256,580 $23,765,300 $ 42,098 $ 111 $ 101,257 $ 191,667
========== ========== ========== ========== ========== ==========
Units
sold 3,432,189 2,298,195 36,499 100 96,638 184,334
Units
redeemed (2,228,278) (1,569,057) (803) 0 0 0
Net increase
(decrease)1,203,911 729,138 35,696 100 96,638 184,334
Units outstanding,
beg. 10,816,324 10,087,186 100 0 0 0
Units outstanding,
ending 12,020,235 10,816,324 35,796 100 96,638 184,334
(1) For the Period from May 1, 1997 to December 31, 1997
(2) For the Period from March 31, 1998 to December 31, 1998
The accompanying notes are an integral part of the financial statements
9
<PAGE>
AUL American Unit Trust
Statements of Operations and Changes in Net Assets (continued)
for the years ended December 31, 1998 and 1997
AUL American
Series Fund Fidelity
------------ -----------------------------------------------
Aggressive
Investor High Income Growth
------------ ----------------------- ----------------------
1998(2) 1998 1997 1998 1997
------------ ----------- ---------- ---------- ----------
Operations:
Dividend
income $ 983 $ 1,597,594 $ 796,755 $ 7,725,638 $ 1,439,710
Mortality
& expense
charges 180 198,837 146,800 871,434 590,413
Net Investment
Income
(Loss) 803 1,398,757 649,955 6,854,204 849,297
Gain (Loss) on Investments:
Net realized
gain
(loss) 2,351 120,126 516,248 5,028,903 2,345,762
Net change in
unrealized
appreciation
(deprec.) 5,717 (2,521,237) 596,160 11,659,673 5,881,034
Net Gain
(Loss) 8,068 (2,401,111) 1,112,408 16,688,576 8,226,796
Increase (Decrease)
In Net Assets from
Oper. 8,871 (1,002,354) 1,762,363 23,542,780 9,076,093
Contract Owner Transactions:
Proceeds
from units
sold 159,391 11,184,502 5,631,914 35,267,762 17,758,368
Cost of units
redeemed (24,134) (5,953,368) (3,515,487)(20,979,905)(10,186,999)
Increase
(Decrease) 135,257 5,231,134 2,116,42 14,287,857 7,571,369
Net increase
(decrease) 144,128 4,228,780 3,878,790 37,830,637 16,647,462
Net Assets,
begin. 0 13,541,887 9,663,097 55,118,978 38,471,516
Net Assets,
ending $ 144,128 $17,770,667 $13,541,887 $92,949,615 $55,118,978
========== ========== ========== ========== ==========
Units
sold 163,479 6,720,498 3,595,859 14,692,263 9,328,133
Units
redeemed (24,543) (3,585,586) (2,221,754) (8,749,719) (5,394,827)
Net increase
(decrease) 138,936 3,134,912 1,374,105 5,942,544 3,933,306
Units outstanding,
begin. 0 8,053,332 6,679,227 26,493,376 22,560,070
Units outstanding,
ending 138,936 11,188,244 8,053,332 32,435,920 26,493,376
========== ========== ========== ========== ==========
(2) For the Period from March 31, 1998 to December 31, 1998
The accompanying notes are an integral part of the financial statements
10
<PAGE>
AUL American Unit Trust
Statements of Operations and Changes in Net Assets (continued)
for the years ended December 31, 1998 and 1997
Fidelity
-----------------------------------------------------------------------
Overseas Asset Manager Index 500
----------------------- ---------------------- ----------------------
1998 1997 1998 1997 1998 1997
----------- ---------- ---------- ---------- ---------- ----------
Operations:
Dividend
income $ 1,119,662 $ 1,001,817 $ 6,424,996 $ 4,572,177 $ 1,715,647 $ 653,527
Mortality
& expense
charges 201,307 171,253 729,414 549,366 770,764 372,156
Net Investment
Income
(Loss) 918,355 830,564 5,695,582 4,022,811 944,883 281,371
Gain (Loss) on Investments:
Net realized
gain
(loss) 603,428 1,428,939 1,708,930 1,075,838 5,977,429 3,803,606
Net change in
unrealized
appreciation
(deprec.) 226,629 (992,681) 216,304 2,515,095 8,181,814 3,223,254
Net Gain
(Loss) 830,057 436,258 1,925,234 3,590,933 14,159,243 7,026,860
Increase (Decrease)
In Net Assets from
Oper. 1,748,412 1,266,822 7,620,816 7,613,744 15,104,126 7,308,231
Contract Owner Transactions:
Proceeds
from units
sold 20,264,193 16,550,480 19,851,423 11,799,650 54,712,307 33,188,691
Cost of units
redeemed(19,060,642)(15,021,536) (9,007,408) (5,887,440)(23,200,129)(15,658,881)
Increase
(Decrease)1,203,551 1,528,944 10,844,015 5,912,210 31,512,178 17,529,810
Net increase
(decrease)2,951,963 2,795,766 18,464,831 13,525,954 46,616,304 24,838,041
Net Assets,
begin. 14,204,012 11,408,246 50,292,210 36,766,256 42,003,492 17,165,451
Net Assets,
ending $17,155,975 $14,204,012 $68,757,041 $50,292,210 $88,619,796 $42,003,492
========== ========== ========== ========== ========== ==========
Units
sold 12,061,342 10,859,725 11,530,487 7,892,511 21,289,312 16,153,810
Units
redeemed(11,270,221) (9,796,364) (5,253,388) (3,928,662) (9,071,095) (7,620,276)
Net increase
(decrease) 791,121 1,063,361 6,277,099 3,963,849 12,218,217 8,533,534
Units outstanding,
begin. 9,308,550 8,245,189 30,831,927 26,868,078 18,374,733 9,841,199
Units outstanding,
ending 10,099,671 9,308,550 37,109,026 30,831,927 30,592,950 18,374,733
========== ========== ========== ========== ========== ==========
The accompanying notes are an integral part of the financial statements
11
<PAGE>
AUL American Unit Trust
Statements of Operations and Changes in Net Assets (continued)
for the years ended December 31, 1998 and 1997
Fidelity American Century
----------------------------------------------- ----------------------
VP Capital
Equity-Income Contrafund Appreciation
----------------------- ---------------------- ----------------------
1998 1997 1998 1997 1998 1997
----------- ---------- ---------- ---------- ---------- ----------
Operations:
Dividend
income $ 807,143 $ 626,460 $ 1,001,436 $ 231,987 $ 108,260 $ 44,992
Mortality
& expense
charges 191,124 109,686 279,936 148,730 25,308 27,094
Net Investment
Income
(Loss) 616,019 516,774 721,500 83,257 82,952 17,898
Gain (Loss) on Investments:
Net realized
gain
(loss) 592,037 198,968 1,399,625 480,270 (145,811) (242,024)
Net change in
unrealized
appreciation
(deprec.) 236,852 1,255,124 3,972,316 1,791,596 29,319 82,323
Net Gain
(Loss) 828,889 1,454,092 5,371,941 2,271,866 (116,492) (159,701)
Increase (Decrease)
In Net Assets from
Oper. 1,444,908 1,970,866 6,093,441 2,355,123 (33,540) (141,803)
Contract Owner Transactions:
Proceeds
from units
sold 7,597,451 5,754,994 13,525,264 9,337,115 1,025,794 1,386,304
Cost of units
redeemed (2,838,931) (1,406,108) (4,885,163) (2,083,657) (1,144,715) (1,124,243)
Increase
(Decrease)4,758,520 4,348,886 8,640,101 7,253,458 (118,921) 262,061
Net increase
(decrease)6,203,428 6,319,752 14,733,542 9,608,581 (152,461) 120,258
Net Assets,
begin. 12,177,905 5,858,153 16,668,206 7,059,625 2,309,700 2,189,442
Net Assets,
ending $18,381,333 $12,177,905 $31,401,748 $16,668,206 $ 2,157,239 $ 2,309,700
========== ========== ========== ========== ========== ==========
Units
sold 4,148,951 3,613,383 6,565,456 5,555,376 928,469 1,148,628
Units
redeemed (1,570,926) (897,167) (2,370,377) (1,245,928) (993,436) (964,353)
Net increase
(decrease)2,578,025 2,716,216 4,195,079 4,309,448 (64,967) 184,275
Units outstanding,
begin. 6,959,675 4,243,459 8,965,623 4,656,175 1,970,129 1,785,854
Units outstanding,
ending 9,537,700 6,959,675 13,160,702 8,965,623 1,905,162 1,970,129
The accompanying notes are an integral part of the financial statements
12
<PAGE>
AUL American Unit Trust
Statements of Operations and Changes in Net Assets (continued)
for the years ended December 31, 1998 and 1997
Alger Calvert T Rowe Price
----------------------- ---------------------- ----------------------
American Growth Social Mid-Cap Growth Equity Income
----------------------- ---------------------- ----------------------
1998 1997 1998 1997 1998 1997
----------- ---------- ---------- ---------- ---------- ----------
Operations:
Dividend
income $ 4,116,683 $ 123,940 $ 531,185 $ 181,799 $ 1,744,296 $ 972,267
Mortality
& expense
charges 344,924 182,029 36,719 17,649 367,134 169,670
Net Investment
Income
(Loss) 3,771,759 (58,089) 494,466 164,150 1,377,162 802,597
Gain (Loss) on Investments:
Net realized
gain
(loss) 2,252,193 1,909,253 112,545 254,824 1,296,725 433,615
Net change in
unrealized
appreciation
(deprec.) 5,111,555 917,221 140,925 (154,179) (534,704) 1,951,034
Net Gain
(Loss) 7,363,748 2,826,474 253,470 100,645 762,021 2,384,649
Increase(Decrease)
In Net Assets from
Oper. 11,135,507 2,768,385 747,936 264,795 2,139,183 3,187,246
Contract Owner Transactions:
Proceeds
from units
sold 25,946,680 17,980,961 11,058,290 4,105,208 19,653,169 13,767,571
Cost of units
redeemed(14,522,954)(11,040,785) (8,763,534) (3,917,872) (5,338,408) (1,614,233)
Increase
(Decr.) 11,423,726 6,940,176 2,294,756 187,336 14,314,761 12,153,338
Net increase
(decr.) 22,559,233 9,708,561 3,042,692 452,131 16,453,944 15,340,584
Net Assets,
begin. 19,116,058 9,407,497 1,755,044 1,302,913 21,526,126 6,185,542
Net Assets,
ending $41,675,291 $19,116,058 $ 4,797,736 $ 1,755,044 $37,980,070 $21,526,126
========== ========== ========== ========== ========== ==========
Units
sold 12,309,431 11,056,170 5,929,115 2,790,936 10,256,308 8,362,667
Units
redeemed (6,947,796) (6,810,757) (4,715,991) (2,690,839) (2,821,549) (975,139)
Net increase
(decrease)5,361,635 4,245,413 1,213,124 100,097 7,434,759 7,387,528
Units outstanding,
begin. 10,920,405 6,674,992 1,070,537 970,440 11,646,682 4,259,154
Units outstanding,
ending 16,282,040 10,920,405 2,283,661 1,070,537 19,081,441 11,646,682
========== ========== ========== ========== ========== ==========
The accompanying notes are an integral part of the financial statements
13
<PAGE>
AUL American Unit Trust
Statements of Operations and Changes in Net Assets (continued)
for the years ended December 31, 1998 and 1997
PBHG Janus
----------------------------------------------- ----------------------
Growth II Tech. & Comm. Worldwide Growth
----------------------- ---------------------- ----------------------
1998 1997(1) 1998 1997(1) 1998 1997(1)
----------- ---------- ---------- ---------- ---------- ----------
Operations:
Dividend
income $ 0 $ 0 $ 31 $ 0 $ 236,259 $ 5,662
Mortality
& expense
charges 2,790 286 2,215 414 79,994 8,550
Net Investment
Income
(Loss) (2,790) (286) (2,184) (414) 156,265 (2,888)
Gain (Loss) on Investments:
Net realized
gain
(loss) (173) (340) (2,571) 463 (401,473) 2,701
Net change in
unrealized
appreciation
(deprec.) 48,875 (1,874) 67,736 (13,550) 1,523,872 (10,837)
Net Gain
(Loss) 48,702 (2,214) 65,165 (13,087) 1,122,399 (8,136)
Increase (Decrease)
In Net Assets from
Oper. 45,912 (2,500) 62,981 (13,501) 1,278,664 (11,024)
Contract Owner Transactions:
Proceeds
from units
sold 396,424 86,468 236,715 118,430 15,654,275 2,560,652
Cost of units
redeemed (34,462) (21,623) (116,050) (18) (7,227,614) (121,828)
Increase
(Decrease) 361,962 64,845 120,665 118,412 8,426,661 2,438,824
Net increase
(decrease) 407,874 62,345 183,646 104,911 9,705,325 2,427,800
Net Assets,
begin. 62,345 0 104,911 0 2,427,800 0
Net Assets,
ending $ 470,219 $ 62,345 $ 288,557 $ 104,911 $12,133,125 $ 2,427,800
========== ========== ========== ========== ========== ==========
Units
sold 385,073 77,370 215,014 101,623 11,993,056 2,234,612
Units
redeemed (30,705) (18,865) (102,552) (38) (5,761,517) (108,240)
Net increase
(decrease) 354,368 58,505 112,462 101,585 6,231,539 2,126,372
Units outstanding,
begin. 58,505 0 101,585 0 2,126,372 0
Units outstanding,
ending 412,873 58,505 214,047 101,585 8,357,911 2,126,372
========== ========== ========== ========== ========== ==========
(1) For the Period from May 1, 1997 to December 31, 1997
The accompanying notes are an integral part of the financial statements
14
<PAGE>
AUL American Unit Trust
Statements of Operations and Changes in Net Assets (continued)
for the years ended December 31, 1998 and 1997
Janus SAFECO
----------------------- ----------------------------------------------
Flexible Income Equity Growth
----------------------- ---------------------- ----------------------
1998 1997(1) 1998 1997(1) 1998 1997(1)
----------- ---------- ---------- ---------- ---------- ----------
Operations:
Dividend
income $ 101,781 $ 7,720 $ 136,921 $ 15,690 $ 982,700 $ 242,103
Mortality
& expense
charges 14,514 744 11,787 673 64,381 4,985
Net Investment
Income
(Loss) 87,267 6,976 125,134 15,017 918,319 237,118
Gain (Loss) on Investments:
Net realized
gain
(loss) 5,591 2,900 11,324 (127) (131,487) 49,644
Net change in
unrealized
appreciation
(deprec.) (12,265) (3,837) 155,729 (10,581) (1,196,621) (180,480)
Net Gain
(Loss) (6,674) (937) 167,053 (10,708) (1,328,108) (130,836)
Increase (Decrease)
In Net Assets from
Oper. 80,593 6,039 292,187 4,309 (409,789) 106,282
Contract Owner Transactions:
Proceeds
from units
sold 2,506,207 410,273 2,516,740 212,703 10,102,077 2,041,581
Cost of units
redeemed (319,886) (102,655) (111,758) (889) (1,752,970 ) (642,558)
Increase
(Decrease)2,186,321 307,618 2,404,982 211,814 8,349,107 1,399,023
Net increase
(decrease)2,266,914 313,657 2,697,169 216,123 7,939,318 1,505,305
Net Assets,
begin. 313,657 0 216,123 0 1,505,305 0
Net Assets,
ending $ 2,580,571 $ 313,657 $ 2,913,292 $ 216,123 $ 9,444,623 $ 1,505,305
========== ========== ========== ========== ========== ==========
Units
sold 2,194,288 385,932 1,932,127 186,896 6,848,637 1,550,299
Units
redeemed (279,572) (96,578) (83,466) (806) (1,229,365) (481,184)
Net increase
(decrease)1,914,716 289,354 1,848,661 186,090 5,619,272 1,069,115
Units outstanding,
begin. 289,354 0 186,090 0 1,069,155 0
Units outstanding,
ending 2,204,070 289,354 2,034,751 186,090 6,688,427 1,069,115
========== ========== ========== ========== ========== ==========
(1) For the Period from May 1, 1997 to December 31, 1997
The accompanying notes are an integral part of the financial statements
15
<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 of AUL and invests exclusively in shares of mutual
fund portfolios offered by the AUL American Series Fund, Inc. (AUL American
Series Fund), Fidelity Variable Insurance Products Fund and Fidelity Variable
Insurance Products Fund II(Fidelity), American Century Variable Portfolios, Inc.
(American Century), Calvert Variable Series (Calvert), T. Rowe Price Equity
Series, Inc. (T. Rowe Price), PBHG Insurance Series Fund, Inc. (PBHG), Janus
Aspen Series (Janus), and Safeco Resource Series Trust (Safeco).
Security Valuation, Transactions and Related Investment Income
The market value of investments is based on the closing bid prices at December
31, 1998. 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, 1998 and 1997 were $5,223,184 and $3,299,521, 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 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. 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
years ended December 31, 1998 and 1997 were $262,069 and $306,474, respectively.
16
<PAGE>
Notes to financial statements (continued)
2. Account Charges (continued)
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. However, the contract owner has a right to a full
refund of the contributions made under a contract for any reason within ten days
of original contract purchase. The amount of the withdrawal 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, 1998 and 1997 were $303,763 and $199,277,
respectively.
3. Accumulation Unit Value
The change in the Accumulation Unit Value per unit for the year ended December
31, 1998, or from inception of operation, May 1, 1998, through December 31,
1998, is:
12/31/98 12/31/97 Change
-------- -------- ------
AUL American Series Fund:
Equity $2.858297 $2.696745 6.0%
Money Market 1.320892 1.274444 3.6%
Bond 1.847200 1.719983 7.4%
Managed 2.348652 2.194762 7.0%
Tactical 1.175785 1.110125 5.9%
Fidelity:
High Income 1.588183 1.680960 -5.5%
Growth 2.864673 2.079525 37.8%
Overseas 1.697134 1.524164 11.3%
Asset Manager 1.852296 1.630253 13.6%
Index 500 2.895747 2.284968 26.7%
Equity Income 1.925332 1.746514 10.2%
Contrafund 2.385912 1.858720 28.4%
American Century:
VP Capital
Appreciation 1.131147 1.170649 -3.4%
Alger:
American Growth 2.559334 1.750190 46.2%
Calvert:
Social Mid-Cap
Growth 2.100672 1.638970 28.2%
T. Rowe Price:
Equity Income 1.990312 1.847792 7.7%
PBHG:
Growth II 1.138978 1.066050 6.8%
Technology &
Communications 1.347791 1.032340 30.6%
17
<PAGE>
Notes to financial statements (continued)
3. Accumulation Unit Value (continued)
12/31/98 12/31/97 Change
-------- -------- ------
Janus:
Worldwide Growth 1.451645 1.141625 27.2%
Flexible Income 1.170811 1.083840 8.0%
Safeco:
Equity 1.431636 1.160728 23.3%
Growth 1.412139 1.407808 0.3%
12/31/98 05/1/98 Change
-------- ------- ------
AUL American Series Fund:
Conservative Investor 1.046823 1.002758 4.4%
Moderate Investor 1.039569 1.003655 3.6%
Aggressive Investor 1.037132 1.004549 3.2%
4. Cost of Investments
The cost of Investments at December 31, 1998, is:
AUL American Series Fund:
Equity $37,986,347
Money Market 10,701,526
Bond 13,183,480
Managed 26,126,117
Tactical 43,649
Conservative Investor 99,818
Moderate Investor 186,828
Aggressive Investor 138,411
Fidelity:
High Income 18,895,087
Growth 72,414,933
Overseas 17,049,893
Asset Manager 61,178,847
Index 500 75,487,959
Equity Income 16,491,115
Contrafund 25,010,751
American Century:
VP Capital
Appreciation 2,259,167
Alger:
American Growth 35,211,961
Calvert:
Social Mid-Cap Growth 4,792,561
T. Rowe Price:
Equity Income 36,211,376
PBHG:
Growth II 423,219
Technology &
Communications 234,371
Janus:
Worldwide Growth 10,620,090
Flexible Income 2,596,672
Safeco:
Equity 2,768,145
Growth 10,821,724
18
<PAGE>
Notes to financial statements (continued)
5. Net Assets
Net Assets at December 31, 1998, are:
AUL American Series Fund
--------------------------------------------------------------------
Equity Money Market Bond Managed Tact. Asset
----------- ------------ ----------- ---------- ------------
Proceeds from
units sold $ 46,954,027 $ 109,394,279 $ 29,889,961 $ 32,471,205 $ 43,903
Cost of units
redeemed (21,220,336) (99,432,122) (18,954,906) (13,916,910) (949)
Net
Investment
Income
(Loss) 5,350,550 739,369 1,985,621 4,985,572 810
Net Realized
Gain (Loss) 6,902,106 0 262,804 2,586,250 (115)
Unrealized
Gain (Loss) 3,118,591 0 (247,716) 2,130,463 (1,551)
$ 41,104,938 $ 10,701,526 $ 12,935,764 $ 28,256,580 $ 42,098
=========== ============ =========== =========== ===========
AUL American Series Fund Fidelity
----------------------------------------- -------------------------
Conservative Moderate Aggressive
Investor Investor Investor High Income Growth
------------- ------------ ------------ ------------ -----------
Proceeds from
units sold $ 98,567 $ 185,260 $ 159,391 $27,654,355 $ 98,102,076
Cost of units
redeemed 0 0 (24,134) (12,260,449) (45,796,954)
Net
Investment
Income
(Loss) 1,251 1,568 803 2,777,829 8,966,370
Net Realized
Gain (Loss) 0 0 2,351 723,351 11,143,442
Unrealized
Gain (Loss) 1,439 4,839 5,717 (1,124,419) 20,534,681
$ 101,257 $ 191,667 $ 144,128 $ 17,770,667 $ 92,949,615
=========== ============ =========== =========== ===========
Fidelity
--------------------------------------------------------------------
Overseas Asset Mgr Index 500 Eqty-Inc Contrafund
------------- ------------ ------------ ------------ -----------
Proceeds from
units sold $ 55,830,495 $ 73,363,482 $107,539,048 $ 19,627,529 $ 30,585,824
Cost of units
redeemed (43,278,891) (26,509,259) (44,558,855) (5,138,336) (8,403,018)
Net
Investment
Income
(Loss) 1,748,531 11,568,598 1,357,912 1,152,121 778,670
Net Realized
Gain (Loss) 2,749,758 2,756,026 11,149,854 849,801 2,049,274
Unrealized
Gain (Loss) 106,082 7,578,194 13,131,837 1,890,218 6,390,998
$ 17,155,975 $ 68,757,041 $ 88,619,796 $ 18,381,333 $ 31,401,748
=========== ============ ============ =========== ===========
American
Century Alger Calvert T. Rowe Price PBHG
------------- ------------ ------------ ------------- ----------
VP Capital American Social Mid-Cap
Appreciation Growth Growth Equity Income Growth II
------------- ------------ ------------ ------------ -----------
Proceeds from
units sold $ 5,025,831 $ 56,797,727 $ 23,422,376 $ 40,298,908 $ 482,892
Cost of units
redeemed (2,690,304) (29,613,008) (19,678,278) (8,202,539) (56,085)
Net
Investment
Income
(Loss) 231,052 3,763,519 656,623 2,277,148 (3,076)
Net Realized
Gain (Loss) (307,412) 4,263,723 391,840 1,837,859 (513)
Unrealized
Gain (Loss) (101,928) 6,463,330 5,175 1,768,694 47,001
$ 2,157,239 $ 41,675,291 $ 4,797,736 $ 37,980,070 $ 470,219
19
<PAGE>
Notes to financial statements (continued)
5. Net Assets (continued)
Net Assets at December 31, 1998, are:
PBHG Janus Safeco
------------- --------------------------- --------------------------
Technology & Worldwide Flexible
Communications Growth Income Equity Growth
------------- ------------- ------------- ------------- ------------
Proceeds from
units sold $ 355,146 $ 18,214,927 $ 2,916,482 $ 2,729,443 $ 12,143,658
Cost of units
redeemed (116,069) (7,349,441) (422,542) (112,648) (2,395,528)
Net
Investment
Income
(Loss) (2,598) 153,377 94,243 140,151 1,155,437
Net Realized
Gain (Loss) (2,108) (398,772) 8,490 11,198 (81,843)
Unrealized
Gain (Loss) 54,186 1,513,034 (16,102) 145,148 (1,377,101)
$ 288,557 $ 12,133,125 $ 2,580,571 $ 2,913,292 $ 9,444,623
=========== ============ ============ =========== ===========
20
<PAGE>
AUL
American United Life Insurance Company
One American Square
P.O. Box 368
Indianapolis, Indiana 46206-0368
www.aul.com
P-13118A (1/99)
Back Cover
<PAGE>
