SEMI-ANNUAL REPORT
FOR
AUL AMERICAN UIT TRUST
JUNE 30, 1999
American United Life Insurance Company
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 acompanied or preceded by an
efective 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.
<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 continues to surprise investors with its
longevity. It has now endured for 100 months, making it the longest peacetime
expansion in U.S. history. If the economy can remain on its current track for
another six months, it will achieve the distinction of being the longest
expansion of all time.
However, economic growth can represent a mixed blessing. The Federal Reserve has
been keeping a close eye on domestic growth watching for signs of inflationary
pressures. At its June 29-30 meeting, the Fed decided to take a pre-emptive step
by raising the Federal Funds rate by 25 basis points, representing the first
such increase since March 1997. The Fed is hoping that this modest move will
eliminate the need for more drastic action at some later date.
Bond prices declined steadily during the first half of the year as market
participants reacted to the surprisingly strong growth of the U.S. economy and
the rekindling of expectations for a rebound in the global economy. The ten-year
Treasury yield increased from 4.65% at the beginning of the year to over 5.75%
at the end of June.
As we began 1999, stock market performance was driven by large growth and
technology companies, the same as in 1998. But the increase in long-term
interest rates stalled the upward momentum in the equity market. The stock
market experienced a dramatic change in leadership in April as investors began
focusing on industries that would benefit from stronger global growth. This
rotation resulted in a remarkable rebound in economically sensitive and small
capitalization companies.
As we enter the second half of 1999, the marketplace remains vulnerable to
external surprises. The Federal Reserve will be closely watching the growth rate
of the U.S. economy. Without some moderation, the Federal Reserve may feel
forced to take additional action.
Y2K issues will also provide additional uncertainty as we near the end of 1999.
For information regarding AUL's preparation for Y2K, please see AUL's website at
www.aul.com or call (800) 249-6269.
/s/ James W. Murphy
James W. Murphy
Chairman of the Board of Directors and President
Indianapolis, Indiana
July 15, 1999
1
<PAGE>
(This page is intentionally blank.)
2
<PAGE>
AUL American Unit Trust
STATEMENT OF NET ASSETS
June 30, 1999
(unaudited)
<TABLE>
<CAPTION>
AUL American Series Fund
Tactical Asset
Equity Money Market Bond Managed Allocation
<S> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 42,980,697 $ 15,307,956 $ 13,330,035 $29,324,197 $ 44,185
Net Assets $ 42,980,697 $ 15,307,956 $ 13,330,035 $29,324,197 $ 44,185
Units outstanding 13,642,284 11,414,081 7,382,218 11,885,667 36,235
Accumulation Unit Value $ 3.15 $ 1.34 $ 1.81 $ 2.46 $ 1.22
</TABLE>
<TABLE>
<CAPTION>
AUL American Series Fund Fidelity
Conservative Moderate Aggressive
Investor Investor Investor High Income Growth
<S> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 136,731 $ 250,212 $ 154,532 $19,190,507 $114,787,273
Net Assets $ 136,731 $ 250,212 $ 154,532 $19,190,507 $114,787,273
Units outstanding 128,042 232,673 140,907 11,260,325 35,224,932
Accumulation Unit Value $ 1.07 $ 1.08 $ 1.10 $ 1.70 $ 3.26
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
AUL American Unit Trust
STATEMENTS OF NET ASSETS (continued)
June 30, 1999
(unaudited)
<TABLE>
<CAPTION>
Fidelity
Overseas Asset Manager Index 500 Equity-Income Contrafund
<S> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 17,703,595 $ 75,752,923 $ 114,316,171 $ 21,398,688 $42,065,259
Net Assets $ 17,703,595 $ 75,752,923 $ 114,316,171 $ 21,398,68 $42,065,259
Units outstanding 9,698,930 39,080,531 35,439,693 9,913,399 15,944,445
Accumulation Unit Value $ 1.82 $ 1.94 $ 3.22 $ 2.16 $ 2.64
</TABLE>
<TABLE>
<CAPTION>
American
Century Alger Calvert T. Rowe Price PBHG
VP Capital American Social Mid Cap
Appreciation Growth Growth Equity Income Growth II
<S> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 2,646,262 $ 61,339,636 $ 5,423,247 $43,646,949 $ 1,003,322
Net Assets $ 2,646,262 $ 61,339,636 $ 5,423,247 $43,646,949 $ 1,003,322
Units outstanding 2,025,672 20,768,500 2,397,141 19,636,997 708,449
Accumulation Unit Value $ 1.30 $ 2.95 $ 2.26 $ 2.22 $ 1.42
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
AUL American Unit Trust
STATEMENTS OF NET ASSETS (continued)
June 30, 1999
(unaudited)
<TABLE>
<CAPTION>
PBHG Janus Safeco
Technology & Worldwide Flexible
Communications Growth Income Equity Growth
<S> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 1,010,062 $ 19,508,507 $ 4,073,055 $ 3,847,151 $ 9,669,605
Net Assets $ 1,010,062 $ 19,508,507 $ 4,073,055 $ 3,847,151 $ 9,669,605
Units outstanding 511,525 11,991,955 3,522,698 2,454,667 7,232,743
Accumulation Unit Value $ 1.97 $ 1.63 $ 1.16 $ 1.57 $ 1.34
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
AUL American Unit Trust
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
AUL American Series Fund
Equity Money Market Bond
<S> <C> <C> <C> <C> <C> <C>
Six months Year Six months Year Six months Year
ended 6/30/99 ended ended 6/30/99 ended ended 6/30/99 ended
(unaudited) 12/31/98 (unaudited) 12/31/98 (unaudited) 12/31/98
Operations:
Dividend income $ - $ 4,129,858 $ 291,037 $ 386,161 $ - $ 782,456
Mortality & expense
charges 255,878 473,604 84,693 100,713 81,306 129,862
Net Investment Income
(Loss) (255,878) 3,656,254 206,344 285,448 (81,306) 652,594
Gain (Loss) on Investments:
Net realized gain (loss) 2,004,813 3,608,786 - - (97,641) 254,972
Net change in
unrealized appreciation
(depreciation) 2,262,580 (5,156,717) - - (124,917) (170,174)
Net Gain (Loss) 4,267,393 (1,547,931) - - (222,558) 84,798
Increase (Decrease)
in Net Assets
from Operations 4,011,515 2,108,323 206,344 285,448 (303,864) 737,392
Contract Owner Transactions:
Proceeds from units sold 4,012,320 13,209,744 37,356,357 46,547,976 7,077,779 17,474,578
Cost of units redeemed (6,148,076) (8,168,235) (32,956,271) (43,481,629) (6,379,644) (13,767,123)
Increase (Decrease) (2,135,756) 5,041,509 4,400,086 3,066,347 698,135 3,707,455
Net increase (decrease) 1,875,759 7,149,832 4,606,430 3,351,795 394,271 4,444,847
Net Assets, beginning 41,104,938 33,955,106 10,701,526 7,349,731 12,935,764 8,490,917
Net Assets, ending $ 42,980,697 $ 41,104,938 $ 5,307,956 $ 10,701,526 $ 13,330,035 $12,935,764
Units sold 1,348,069 4,750,246 28,049,337 35,822,473 3,847,030 9,671,190
Units redeemed (2,082,512) (2,959,555) (24,736,654) (33,485,508) (3,468,044) (7,605,386)
Net Increase (Decrease) (734,443) 1,790,691 3,312,683 2,336,965 378,986 2,065,804
Units outstanding, beginning 14,376,727 12,586,036 8,101,398 5,764,433 7,003,232 4,937,428
Units outstanding, ending 13,642,284 14,376,727 11,414,081 8,101,398 7,382,218 7,003,232
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
AUL American Unit Trust
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS(continued)
<TABLE>
<CAPTION>
AUL American Series Fund
Managed Tactical Asset Allocation Conservative Investor
<S> <C> <C> <C> <C> <C> <C>
Six months Year Six months Year Six months 5/1/98
ended 6/30/99 ended ended 6/30/99 ended ended 6/30/99 (commencement)
(unaudited) 12/31/98 (unaudited) 12/31/98 (unaudited) to 12/31/99
Operations:
Dividend income $ - $ 2,496,726 $ - $ 976 $ - $ 1,251
Mortality & expense
charges 178,335 325,915 255 175 900 -
Net Investment Income
(Loss) (178,335) 2,170,811 (255) 801 (900) 1,251
Gain (Loss) on Investments:
Net realized gain (loss) 752,216 1,475,867 (126) (115) 1,436 -
Net change in
unrealized appreciation
(depreciation) 834,078 (1,908,536) 1,778 (1,555) 1,512 1,439
Net Gain (Loss) 1,586,294 (432,669) 1,652 (1,670) 2,948 1,439
Increase (Decrease)
in Net Assets
from Operations 1,407,959 1,738,142 1,397 (869) 2,048 2,690
Contract Owner Transactions:
Proceeds from units sold 2,441,094 7,792,884 2,637 43,805 70,545 98,567
Cost of units redeemed (2,781,436) (5,039,746) (1,947) (949) (37,119) -
Increase (Decrease) (340,342) 2,753,138 690 42,856 33,426 98,567
Net increase (decrease) 1,067,617 4,491,280 2,087 41,987 35,474 101,257
Net Assets, beginning 28,256,580 23,765,300 42,098 111 101,257 -
Net Assets, ending $ 29,324,197 $ 28,256,580 $ 44,185 $ 42,098 $ 136,731 $ 101,257
Units sold 1,027,250 3,432,189 2,206 36,499 66,470 96,638
Units redeemed (1,161,818) (2,228,278) (1,767) (803) (35,066) -
Net Increase (Decrease) (134,568) 1,203,911 439 35,696 31,404 96,638
Units outstanding, beginning 12,020,235 10,816,324 35,796 100 96,638 -
Units outstanding, ending 11,885,667 12,020,235 36,235 35,796 128,042 96,638
</TABLE>
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(continued)
<TABLE>
<CAPTION>
AUL American Series Fund Fidelity
Moderate Investor Aggressive Investor High Income
<S> <C> <C> <C> <C> <C> <C>
Six months 5/1/98 Six months 5/1/98 Six months Year
ended 6/30/99 (commencement)ended 6/30/99 (commencement) ended 6/30/99 ended
(unaudited) to 12/31/99 (unaudited) to 12/31/99 (unaudited) 12/31/98
Operations:
Dividend income $ - $ 1,722 $ - $ 983 $ 1,711,077 $ 1,597,594
Mortality & expense
charges 1,358 154 739 180 115,516 198,837
Net Investment Income
(Loss) (1,358) 1,568 (739) 803 1,595,561 1,398,757
Gain (Loss) on Investments:
Net realized gain (loss) 747 - 5,210 2,351 (278,693) 120,126
Net change in
unrealized appreciation
(depreciation) 8,528 4,839 1,989 5,717 (24,508) (2,521,237)
Net Gain (Loss) 9,275 4,839 7,199 8,068 (303,201) (2,401,111)
Increase (Decrease)
in Net Assets
from Operations 7,917 6,407 6,460 8,871 1,292,360 (1,002,354)
Contract Owner Transactions:
Proceeds from units sold 59,499 185,260 103,917 159,391 4,118,422 11,184,502
Cost of units redeemed (8,871) - (99,973) (24,134) (3,990,942 (5,953,368)
Increase (Decrease) 50,628 185,260 3,944 135,257 127,480 5,231,134
Net increase (decrease) 58,545 191,667 10,404 144,128 1,419,840 4,228,780
Net Assets, beginning 191,667 - 144,128 - 17,770,667 13,541,887
Net Assets, ending $ 250,212 $ 191,667 $ 154,532 $ 144,128 $19,190,507 $17,770,667
Units sold 56,694 184,334 97,928 163,479 2,473,036 6,720,498
Units redeemed (8,355) - (95,957) (24,543) (2,400,955) 3,585,586
Net Increase (Decrease) 48,339 184,334 1,971 138,936 72,081 3,134,912
Units outstanding, beginning 184,334 - 138,936 - 11,188,244 8,053,332
Units outstanding, ending 232,673 184,334 140,907 138,936 11,260,325 11,118,244
</TABLE>
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)
<TABLE>
<CAPTION>
Fidelity
Growth Overseas Asset Manager
<S> <C> <C> <C> <C> <C> <C>
Six months Year Six months Year Six months Year
ended 6/30/99 ended ended 6/30/99 ended ended 6/30/99 ended
(unaudited) 12/31/98 (unaudited) 12/31/98 (unaudited) 12/31/98
Operations:
Dividend income $ 10,816,761 $ 7,725,638 $ 689,437 $ 1,119,662 $ 5,198,176 $ 6,424,996
Mortality & expense
charges 646,736 871,434 107,511 201,307 441,823 729,414
Net Investment Income
(Loss) 10,170,025 6,854,204 581,926 918,355 4,756,353 5,695,582
Gain (Loss) on Investments:
Net realized gain (loss) 5,005,017 5,028,903 (177,469) 603,428 992,480 1,708,930
Net change in
unrealized appreciation
(depreciation) (1,818,896) 11,659,673 895,206 226,629 (2,456,564) 216,304
Net Gain (Loss) 3,186,121 16,688,576 717,737 830,057 (1,464,084) 1,925,234
Increase (Decrease)
in Net Assets
from Operations 13,356,146 23,542,780 1,299,663 1,748,412 3,292,269 7,620,816
Contract Owner Transactions:
Proceeds from units sold 25,769,381 35,267,762 12,096,927 20,264,193 10,018,865 19,851,423
Cost of units redeemed (17,287,869) (20,979,905) (12,848,970) (19,060,642) (6,315,252) (9,007,408)
Increase (Decrease) 8,481,512 14,287,857 (752,043) 1,203,551 3,703,613 10,844,015
Net increase (decrease) 21,837,658 37,830,637 547,620 2,951,963 6,995,882 18,464,831
Net Assets, beginning 92,949,615 55,118,978 17,155,975 14,204,012 68,757,041 50,292,210
Net Assets, ending $114,787,273 $92,949,615 $17,703,595 $17,155,975 $75,752,923 $68,757,041
Units sold 8,426,716 14,692,263 6,928,987 12,061,342 5,316,137 11,530,487
Units redeemed (5,637,704) (8,749,719) (7,329,728) (11,270,221) (3,344,632) (5,253,388)
Net Increase (Decrease) 2,789,012 5,942,544 (400,741) 791,121 1,971,505 6,277,099
Units outstanding, beginning 32,435,920 26,493,376 10,099,671 9,308,550 37,109,026 30,831,927
Units outstanding, ending 35,224,932 32,435,920 9,698,930 10,099,671 39,080,531 37,109,026
</TABLE>
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)
<TABLE>
<CAPTION>
Fidelity
Index 500 Equity-Income Contrafund
<S> <C> <C> <C> <C> <C> <C>
Six months Year Six months Year Six months Year
ended 6/30/99 ended ended 6/30/99 ended ended 6/30/99 ended
(unaudited) 12/31/98 (unaudited) 12/31/98 (unaudited) 12/31/98
Operations:
Dividend income $ 1,524,526 $ 1,715,647 $ 886,531 $ 807,143 $ 1,340,115 $ 1,001,436
Mortality & expense
charges 625,851 770,764 119,864 191,124 226,000 279,936
Net Investment Income
(Loss) 898,675 944,883 766,667 616,019 1,114,115 721,500
Gain (Loss) on Investments:
Net realized gain (loss) 3,831,759 5,977,429 536,599 592,037 1,098,193 1,399,625
Net change in
unrealized appreciation
(depreciation) 6,366,291 8,181,814 907,653 236,852 1,464,168 3,972,316
Net Gain (Loss) 10,198,050 14,159,243 1,444,252 828,889 2,562,361 5,371,941
Increase (Decrease)
in Net Assets
from Operations 11,096,725 15,104,126 2,210,919 1,444,908 3,676,476 6,093,441
Contract Owner Transactions:
Proceeds from units sold 29,278,130 54,712,307 3,658,443 7,597,451 10,124,477 13,525,264
Cost of units redeemed (14,678,480) (23,200,129) (2,852,007) (2,838,931) (3,137,442) (4,885,163)
Increase (Decrease) 14,599,650 31,512,178 806,436 4,758,520 6,987,035 8,640,101
Net increase (decrease) 25,696,375 46,616,304 3,017,355 6,203,428 10,663,511 14,733,542
Net Assets, beginning 88,619,796 42,003,492 18,381,333 12,177,905 31,401,748 16,668,206
Net Assets, ending $114,316,171 $ 88,619,796 $21,398,688 $18,381,333 $42,065,259 $31,401,748
Units sold 9,631,471 21,289,312 1,798,644 4,148,951 4,024,798 6,565,456
Units redeemed (4,784,728) (9,071,095) (1,422,945) (1,570,926) (1,241,055) (2,370,377)
Net Increase (Decrease) 4,846,743 12,218,217 375,699 2,578,025 2,783,743 4,195,079
Units outstanding, beginning 30,592,950 18,374,733 9,537,700 6,959,675 13,160,702 8,965,623
Units outstanding, ending 35,439,693 30,592,950 9,913,399 9,537,700 15,944,445 13,160,702
</TABLE>
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)
<TABLE>
<CAPTION>
American Century Alger Calvert
VP Capital Appreciation American Growth Social Mid Cap Growth
<S> <C> <C> <C> <C> <C> <C>
Six months Year Six months Year Six months Year
ended 6/30/99 ended ended 6/30/99 ended ended 6/30/99 ended
(unaudited) 12/31/98 (unaudited) 12/31/98 (unaudited) 12/31/98
Operations:
Dividend income $ - $ 108,260 $ 5,117,988 $ 4,116,683 $ - $ 531,185
Mortality & expense
charges 14,247 25,308 314,573 344,924 28,791 36,719
Net Investment Income
(Loss) (14,247) 82,952 4,803,415 3,771,759 (28,791) 494,466
Gain (Loss) on Investments:
Net realized gain (loss) 9,120 (145,811) 3,253,474 2,252,193 32,168 112,545
Net change in
unrealized appreciation
(depreciation) 346,408 29,319 (768,085) 5,111,555 363,476 140,925
Net Gain (Loss) 355,528 (116,492) 2,485,389 7,363,748 395,644 253,470
Increase (Decrease)
in Net Assets
from Operations 341,281 (33,540) 7,288,804 11,135,507 366,853 747,936
Contract Owner Transactions:
Proceeds from units sold 542,528 1,025,794 30,950,917 25,946,680 6,551,801 11,058,290
Cost of units redeemed (394,786) (1,144,715) (18,575,376) (14,522,954) (6,293,143) (8,763,534)
Increase (Decrease) 147,742 (118,921) 12,375,541 11,423,726 258,658 2,294,756
Net increase (decrease) 489,023 (152,461) 19,664,345 22,559,233 625,511 3,042,692
Net Assets, beginning 2,157,239 2,309,700 41,675,291 19,116,058 4,797,736 1,755,044
Net Assets, ending $ 2,646,262 $ 2,157,239 $61,339,636 $41,675,291 $ 5,423,247 $ 4,797,736
Units sold 454,505 923,469 11,158,013 12,309,431 3,134,917 5,929,115
Units redeemed (333,995) (993,436) (6,671,553) (6,947,796) (3,021,437) (4,715,991)
Net Increase (Decrease) 120,510 (64,967) 4,486,460 5,361,635 113,480 1,213,124
Units outstanding, beginning 1,905,162 1,970,129 16,282,040 10,920,405 2,283,661 1,070,537
Units outstanding, ending 2,025,672 1,905,162 20,768,500 16,282,040 2,397,141 2,283,661
</TABLE>
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)
<TABLE>
<CAPTION>
T. Rowe Price PBHG
Equity-Income Growth II Technology & Communications
<S> <C> <C> <C> <C> <C> <C>
Six months Year Six months Year Six months Year
ended 6/30/99 ended ended 6/30/99 ended ended 6/30/99 ended
(unaudited) 12/31/98 (unaudited) 12/31/98 (unaudited) 12/31/98
Operations:
Dividend income $ 516,537 $ 1,744,296 $ - $ - $ - $ 31
Mortality & expense
charges 245,263 367,134 4,016 2,790 3,663 2,215
Net Investment Incom
(Loss) 271,274 1,377,162 (4,016) (2,790) (3,663) (2,184)
Gain (Loss) on Investments:
Net realized gain (loss) 1,003,290 1,296,725 20,345 (173) 30,699 (2,571)
Net change in
unrealized appreciation
(depreciation) 3,173,136 (534,704) 128,636 48,875 178,493 67,736
Net Gain (Loss) 4,176,426 762,021 148,981 48,702 209,192 65,165
Increase (Decrease)
in Net Assets
from Operations 4,447,700 2,139,183 144,965 45,912 205,529 62,981
Contract Owner Transactions:
Proceeds from units sold 6,702,168 19,653,169 533,397 396,424 610,573 236,715
Cost of units redeemed (5,482,989) (5,338,408) (145,259) (34,462) (94,597) (116,050)
Increase (Decrease) 1,219,179 14,314,761 388,138 361,962 515,976 120,665
Net increase (decrease) 5,666,879 16,453,944 533,103 407,874 721,505 183,646
Net Assets, beginning 37,980,070 21,526,126 470,219 62,345 288,557 104,911
Net Assets, ending $ 43,646,949 $ 37,980,070 $ 1,003,322 $ 470,219 $ 1,010,062 $ 288,557
Units sold 3,244,649 10,256,308 410,996 385,073 355,211 215,014
Units redeemed (2,689,093) (2,821,549) (115,420) (30,705) (57,733) (102,552)
Net Increase (Decrease) 555,556 7,434,759 295,576 354,368 297,478 112,462
Units outstanding, beginning 19,081,441 11,646,682 412,873 58,505 214,047 101,585
Units outstanding, ending 19,636,997 19,081,441 708,449 412,873 511,525 214,047
</TABLE>
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)
<TABLE>
<CAPTION>
Janus
Worldwide Growth Flexible Income
<S> <C> <C> <C> <C>
Six months Year Six months Year
ended 6/30/99 ended ended 6/30/99 ended
(unaudited) 12/31/98 (unaudited) 12/31/98
Operations:
Dividend income $ 35,634 $ 236,259 $ 143,666 $ 101,781
Mortality & expense
charges 97,073 79,994 20,071 14,514
Net Investment Income
(Loss) (61,439) 156,265 123,595 87,267
Gain (Loss) on Investments:
Net realized gain (loss) 1,007,565 (401,473) (2,877) 5,591
Net change in
unrealized appreciation
(depreciation) 861,139 1,523,872 (171,699) (12,265)
Net Gain (Loss) 1,868,704 1,122,399 (174,576) (6,674)
Increase (Decrease)
in Net Assets
from Operations 1,807,265 1,278,664 (50,981) 80,593
Contract Owner Transactions:
Proceeds from units sold 11,557,179 15,654,275 1,951,231 2,506,207
Cost of units redeemed (5,989,062) (7,227,614) (407,766) (319,886)
Increase (Decrease) 5,568,117 8,426,661 1,543,465 2,186,321
Net increase (decrease) 7,375,382 9,705,325 1,492,484 2,266,914
Net Assets, beginning 12,133,125 2,427,800 2,580,571 313,657
Net Assets, ending $ 19,508,507 $12,133,125 $4,073,055 $2,580,571
Units sold 7,522,861 11,993,056 1,668,856 2,194,288
Units redeemed (3,888,817) (5,761,517) (350,228) (279,572)
Net Increase (Decrease) 3,634,044 6,231,539 1,318,628 1,914,716
Units outstanding, beginning 8,357,911 2,126,372 2,204,070 289,354
Units outstanding, ending 11,991,955 8,357,911 3,522,698 2,204,070
</TABLE>
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)
<TABLE>
<CAPTION>
SAFECO
Equity Growth
<S> <C> <C> <C> <C>
Six months Year Six months Year
ended 6/30/99 ended ended 6/30/99 ended
(unaudited) 12/31/98 (unaudited) 12/31/98
Operations:
Dividend income $ - $ 136,921 $ - $ 982,700
Mortality & expense
charges 20,773 11,787 56,776 64,381
Net Investment Income
(Loss) (20,773) 125,134 (56,776) 918,319
Gain (Loss) on Investments:
Net realized gain (loss) 38,440 11,324 (633,740) (131,487)
Net change in
unrealized appreciation
(depreciation) 289,087 155,729 203,398 (1,196,621)
Net Gain (Loss) 327,527 167,053 (430,342) (1,328,108)
Increase (Decrease)
in Net Assets
from Operations 306,754 292,187 (487,118) (409,789)
Contract Owner Transactions:
Proceeds from units sold 900,242 2,516,740 2,585,371 10,102,077
Cost of units redeemed (273,137) (111,758) (1,873,271) (1,752,970)
Increase (Decrease) 627,105 2,404,982 712,100 8,349,107
Net increase (decrease) 933,859 2,697,169 224,982 7,939,318
Net Assets, beginning 2,913,292 216,123 9,444,623 1,505,305
Net Assets, ending $ 3,847,151 $ 2,913,292 $ 9,669,605 $ 9,444,623
Units sold 603,357 1,932,127 1,960,164 6,848,637
Units redeemed (183,441) (83,466) (1,415,848) (1,229,365)
Net Increase (Decrease) 419,916 1848,661 544,316 5,619,272
Units outstanding, beginning 2,034,751 186,090 6,688,427 1,069,155
Units outstanding, ending 2,454,667 2,034,751 7,232,743 6,688,427
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<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(R) (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 June
30, 1999. 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, 1999 was $3,692,011.
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 existence 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, 1999 were
$122,339.
15
<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 8.5% of the contributions made
by or on behalf of a participant under a contract. The charges incurred during
the six months ended June 30, 1999 was $234,140.
3. Accumulation Unit Value
The change in the Accumulation Unit Value per unit for the six months ended
June 30, 1999, is:
6/30/99 12/31/98 Change
<TABLE>
<CAPTION>
<S> <C> <C> <C>
AUL American Series Fund:
Equity $ 3.149470 $ 2.858297 10.2%
Money Market 1.341082 1.320892 1.5%
Bond 1.805765 1.847200 -2.2%
Managed 2.464662 2.348652 4.9%
Tactical Asset
Allocation 1.215409 1.175785 3.4%
Conservative
Investor 1.067824 1.046823 2.0%
Moderate Investor 1.075191 1.039569 3.4%
Aggressive Investo 1.096424 1.037132 5.7%
Fidelity:
High Income 1.704054 1.588183 7.3%
Growth 3.257443 2.864673 13.7%
Overseas 1.823475 1.697134 7.4%
Asset Manager 1.937677 1.852296 4.6%
Index 500 3.224483 2.895747 11.4%
Equity-Income 2.156416 1.925332 12.0%
Contrafund 2.637997 2.385912 10.6%
American Century:
VP Capital
Appreciation 1.304865 1.131147 15.4%
Alger:
American Growth 2.950540 2.559334 15.3%
Calvert:
Social Mid Cap
Growth 2.261952 2.100672 7.7%
T. Rowe Price:
Equity Income 2.222496 1.990312 11.7%
PBHG:
Growth II 1.416152 1.138978 24.3%
Technology &
Communications 1.974180 1.347791 46.5%
</TABLE>
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. Accumulation Unit Value (continued)
<TABLE>
<CAPTION>
6/30/99 12/31/98 Change
<S> <C> <C> <C>
Janus:
Worldwide Growth $ 1.626684 $ 1.451645 12.1%
Flexible Income 1.156189 1.170811 -1.2%
Safeco:
Equity 1.567110 1.431636 9.5%
Growth 1.337326 1.412139 -5.3%
</TABLE>
4. Cost of Investments
The cost of investments at June 30, 1999, is:
AUL American Series Fund:
<TABLE>
<CAPTION>
<S> <C>
Equity $ 37,599,526
Money Market 15,307,368
Bond 13,702,668
Managed 26,359,656
Tactical Asset
Allocation 43,959
Conservative Investor 133,780
Moderate Investor 236,845
Aggressive Investor 146,826
Fidelity:
High Income 20,339,434
Growth 96,071,488
Overseas 16,702,307
Asset Manager 70,631,293
Index 500 94,818,044
Equity-Income 18,600,818
Contrafund 34,210,093
American Century:
VP Capital Appreciation 2,401,782
Alger:
American Growth $ 55,644,387
Calvert:
Social Mid Cap Growth 5,054,596
T. Rowe Price:
Equity Income 38,705,119
PBHG:
Growth II 827,686
Technology &
Communications 777,383
Janus:
Worldwide Growth 17,134,334
Flexible Income 4,260,856
Safeco:
Equity 3,412,918
Growth 10,843,308
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. Net Assets
Net Assets at June 30, 1999, are:
AUL American Series Fund
Tactical Asset
Equity Money Market Bond Managed Allocation
<S> <C> <C> <C> <C> <C>
Proceeds from units sold $ 50,966,346 $ 146,750,637 $ 36,967,741 $34,912,299 $ 46,541
Cost of units redeemed (27,368,411) (132,388,393) (25,334,550) (16,698,346) (2,895)
Net investment income 5,094,671 945,712 1,904,314 4,807,237 555
Net realized gain (loss) 8,906,920 - 165,163 3,338,466 (242)
Unrealized appreciation
(depreciation) 5,381,171 _ (372,633) 2,964,541 226
$ 42,980,697 $ 15,307,956 $ 13,330,035 $29,324,197 $ 44,185
AUL American Series Fund Fidelity
Conservative Moderate Aggressive
Investor Investor Investor High Income Growth
Proceeds from units sold $ 169,112 $ 244,759 $ 263,309 $31,772,777 $123,871,456
Cost of units redeemed (37,119) (8,871) (124,108)(16,251,391) (63,084,822)
Net investment income 351 210 64 4,373,390 19,136,395
Net realized gain (loss) 1,436 747 7,561 444,658 16,148,459
Unrealized appreciation
(depreciation) 2,951 13,367 7,706 (1,148,927) 18,715,785
$ 136,731 $ 250,212 $ 154,532 $19,190,507 $114,787,273
Fidelity
Overseas Asset Manager Index 500 Equity-Income Contrafund
Proceeds from units sold $ 67,927,422 $ 83,382,347 $ 136,817,179 $23,285,974 $ 40,710,301
Cost of units redeemed (56,127,861) (32,824,511) (59,237,335) (7,990,343) (11,540,460)
Net investment income 2,330,457 16,324,952 2,256,587 1,918,787 1,892,785
Net realized gain (loss) 2,572,289 3,748,505 14,981,613 1,386,400 3,147,467
Unrealized appreciation
(depreciation) 1,001,288 5,121,630 19,498,127 2,797,870 7,855,166
$ 17,703,595 $ 75,752,923 $ 114,316,171 $21,398,688 $ 42,065,259
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 $ 5,568,359 $ 87,748,641 $ 29,974,175 $ 47,001,077 $ 1,016,288
Cost of units redeemed (3,085,090) (48,188,384) (25,971,421) (13,685,528) (201,344)
Net investment income 216,805 8,566,934 627,833 2,548,422 (7,091)
Net realized gain (loss) (298,292) 7,517,196 424,009 2,841,148 19,833
Unrealized appreciation
(depreciation) 244,480 5,695,249 368,651 4,941,830 175,636
$ 2,646,262 $ 61,339,636 $ 5,423,247 $ 43,646,949 $ 1,003,322
</TABLE>
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
<TABLE>
<CAPTION>
5. Net Assets (continued)
Net Assets at June 30, 1999, are:
PBHG Janus Safeco
<S> <C> <C> <C> <C> <C>
Technology & Worldwide Flexible
Communications Growth Income Equity Growth
Proceeds from units sold $ 965,719 $ 29,772,106 $ 4,867,712 $ 3,629,687 $ 14,729,029
Cost of units redeemed (210,666) (13,338,503) (830,307) (385,785) (4,268,799)
Net investment income (6,261) 91,938 217,838 119,378 1,098,661
Net realized gain (loss) 28,591 608,793 5,613 49,638 (715,583)
Unrealized appreciation
(depreciation) 232,679 2,374,173 (187,801) 434,233 (1,173,703)
$ 1,010,062 $ 19,508,507 $ 4,073,055 $ 3,847,151 $ 9,669,605
</TABLE>
19
<PAGE>
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20
<PAGE>
AUL
American United Life Insurance Company
One American Square
P.O. Box 368
Indianapolis, Indiana 46206-0368
www.aul.com
P-13972B 7/99
