Annual Report
for
AUL American Unit Trust
December 31, 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 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.
<PAGE>
A Message
From
The Chairman of the Board
and President of
AUL American Series Fund, Inc.
To Participants in AUL American Unit Trust
It is with great pleasure that I welcome you to the year 2000. Although
doomsayers hypothesized potential calamities due to year 2000 computer problems,
I am happy to announce an uneventful transition into this new era.
The year 1999 can be characterized by its excesses. Technology companies
rocketed to new highs even though the majority of stocks registered poor
performance. New records were set in the IPO (initial public offering) market
with well known names such as UPS and Goldman Sachs. Technology start-ups were
prolific as investors seemed to have an insatiable appetite for Internet
retailers, web site operators and anything carrying the dot-com title. It was
also the year of megamergers, the launch of the euro, and the recovery from
Asias financial woes.
The U.S. economic expansion has also been unique in that it has now lasted for
nine years, making it the longest period of economic growth on record. The fact
that our economy has endured only eight months of recession since 1982 is
another unparalleled feat.
Good economic news can mean tough times for the bond market as investors worry
about the potential for an increase in inflation. The sharp 179 basis point
increase in the ten-year Treasury yield to 6.44% last year reflects this
concern.
Although inflation has not been a problem up to now, the Federal Reserve Board
felt compelled to take a pre-emptive stance last year by raising the Federal
Funds rate on three different occasions. The continued momentum of the economy
suggests that the Feds credit tightening had little apparent impact. The
Federal Reserve is expected to raise rates further this year to help achieve a
sustainable rate of economic growth
Most economists are expecting the economy to continue on its current path, but
to moderate somewhat from current levels. The equity market is also expected to
report positive returns, but could experience a change or moderation in
leadership. Bonds will ultimately benefit if the Federal Reserve is successful
in slowing economic growth. For now, however, bond market investors remain
cautious.
In closing, American United Life remains committed to serving your investment
needs. We appreciate your continued confidence and support.
/s/ James W. Murphy
James W. Murphy
Chairman of the Board of Directors and President
Indianapolis, Indiana
January 31, 2000
1
<PAGE>
(This page is intentionally blank.)
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, 1999, the results of its operations and changes in its net assets for each
of the periods indicated, in conformity with accounting principles generally
accepted in the United States. These financial statements are the responsibility
of the Trusts management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted in
the United States which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1999, by
correspondence with the custodian, provide a reasonable basis forthe opinion
expressed above.
/s/ PricewaterhouseCoopers L.L.P.
Indianapolis, Indiana
February 9, 2000
3
<PAGE>
(This page is intentionally blank.)
4
<PAGE>
AUL American Unit Trust
STATEMENTS OF NET ASSETS
December 31, 1999
<TABLE>
<CAPTION>
AUL American Series Fund
Tactical Asset
Equity Money Market Bond Managed Allocation
<S> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 39,375,474 $ 22,115,522 $ 13,335,902 $ 26,300,245 $ 43,615
Net Assets $ 39,375,474 $ 22,115,522 $ 13,335,902 $ 26,300,245 $ 43,615
Units outstanding 14,055,412 16,194,739 7,392,278 11,417,366 38,741
Accumulation Unit Value $ 2.80 $ 1.37 $ 1.80 $ 2.30 $ 1.13
</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 $ 219,187 $ 317,381 $ 189,274 $ 19,461,564 $ 150,759,409
Net Assets $ 219,187 $ 317,381 $ 189,274 $ 19,461,564 $ 150,759,409
Units outstanding 200,412 285,562 165,446 11,472,703 38,773,669
Accumulation Unit Value 1.09 $ 1.11 $ 1.14 $ 1.70 $ 3.89
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
AUL American Unit Trust
STATEMENTS OF NET ASSETS (continued)
December 31, 1999
<TABLE>
<CAPTION>
Fidelity
Overseas Asset Manager Index 500 Equity-Income Contrafund
<S> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 24,556,544 $ 84,435,100 $139,642,850 $ 21,933,832 $ 51,953,444
Net Assets $ 24,556,544 $ 84,435,100 139,642,850 $ 21,933,832 $ 51,953,444
Units outstanding 10,272,576 41,549,517 40,519,791 10,849,011 17,745,266
Accumulation Unit Value $ 2.39 $ 2.03 $ 3.45 $ 2.02 $ 2.93
</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 $ 4,475,088 $ 83,921,832 $ 5,784,528 $ 43,723,936 $ 2,848,640
Net Assets $ 4,475,088 $ 83,921,832 $ 5,784,528 $ 43,723,936 $ 2,848,640
Units outstanding 2,434,925 24,826,105 2,606,658 21,447,550 1,277,769
Accumulation Unit Value $ 1.84 $ 3.38 $ 2.22 $ 2.04 $ 2.23
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
AUL American Unit Trust
STATEMENTS OF NET ASSETS (continued)
December 31, 1999
PBHG Janus Safeco
<TABLE>
<CAPTION>
Technology & Worldwide Flexible
Communications Growth Income Equity Growth
<S> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 4,242,038 $ 41,104,146 $ 5,219,277 $ 5,485,995 $ 11,659,870
Net Assets $ 4,242,038 $ 41,104,146 $ 5,219,277 $ 5,485,995 $ 11,659,870
Units outstanding 953,083 17,434,846 4,442,496 3,549,888 7,892,665
Accumulation Unit Value $ 4.45 $ 2.36 $ 1.17 $ 1.55 $ 1.48
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
AUL American Unit Trust
STATEMENTS OF OPERATIONS
For the year ended December 31, 1999
<TABLE>
<CAPTION>
AUL American Series Fund
Tactical Asset
Equity Money Market Bond Managed Allocation
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividend Income $ 7,891,758 $ 722,393 $ 784,496 $ 3,856,235 $ 1,420
Mortality and expense charges 507,621 196,316 166,888 353,071 615
Net Investment Income (Loss) 7,384,137 526,077 617,608 3,503,164 805
Gain (Loss) on Investments:
Net realized gain (loss) 2,919,543 0 (177,220) 1,221,117 (174)
Net change in unrealized
appreciation (depreciation) (11,074,489) 0 (764,376) (5,248,816) (2,661)
Net Gain (Loss) (8,154,946) 0 (941,596) (4,027,699) (2,835)
Increase (Decrease) in
net assets from operations $ (770,809)$ 526,077 $ (323,988)$ (524,535)$ (2,030)
</TABLE>
<TABLE>
<CAPTION>
AUL American Series Fund Fidelity
Conservative Moderate Aggressive
Investor Investor Investor High Income Growth
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividend Income $ 15,012 $ 19,233 $ 11,569 $ 1,711,077 $ 10,816,761
Mortality and expense charges 2,026 3,145 1,801 235,666 1,431,033
Net Investment Income (Loss) 12,986 16,088 9,768 1,475,411 9,385,728
Gain (Loss) on Investments:
Net realized gain (loss) 1,541 2,860 10,855 (488,300) 6,752,711
Net change in unrealized
appreciation (depreciation) (6,257) 530 (4,178) 230,867 21,208,589
Net Gain (Loss) (4,716) 3,390 6,677 (257,433) 27,961,300
Increase (Decrease) in
net assets from operations $ 8,270 $ 19,478 $ 16,445 $ 1,217,978 $ 37,347,028
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
AUL American Unit Trust
STATEMENTS OF OPERATIONS (continued)
For the year ended December 31, 1999
Fidelity
<TABLE>
<CAPTION>
Overseas Asset Manager Index 500 Equity-Income Contrafund
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividend Income $ 689,437 $ 5,198,176 $ 1,524,526 $ 886,531 $ 1,340,115
Mortality and expense charges 229,015 933,278 1,388,934 254,554 506,550
Net Investment Income (Loss) 460,422 4,264,898 135,592 631,977 833,565
Gain (Loss) on Investments:
Net realized gain (loss) 1,628,957 1,222,593 4,725,317 683,568 1,324,679
Net change in unrealized
appreciation (depreciation) 4,797,707 1,767,972 15,439,605 (448,453) 6,740,895
Net Gain (Loss) 6,426,664 2,990,565 20,164,922 235,115 8,065,574
Increase (Decrease) in
net assets from operations $ 6,887,086 $ 7,255,463 $ 20,300,514 $ 867,092 $ 8,899,139
</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>
Investment Income:
Dividend Income $ 0 $ 5,117,988 $ 448,103 $ 2,668,875 $ 0
Mortality and expense charges 32,801 739,793 61,119 519,272 13,747
Net Investment Income (Loss) (32,801) 4,378,195 386,984 2,149,603 (13,747)
Gain (Loss) on Investments:
Net realized gain (loss) 16,020 4,990,390 22,288 1,123,495 323,168
Net change in unrealized
appreciation (depreciation) 1,570,713 8,453,020 (78,511) (2,559,217) 722,768
Net Gain (Loss) 1,586,733 13,443,410 (56,223) (1,435,722) 1,045,936
Increase (Decrease) in
net assets from operations $ 1,553,932 $ 17,821,605 $ 330,761 $ 713,881 $ 1,032,189
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
AUL American Unit Trust
STATEMENTS OF OPERATIONS (continued)
For the year ended December 31, 1999
<TABLE>
<CAPTION>
PBHG Janus Safeco
Technology & Worldwide Flexible
Communications Growth Income Equity Growth
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividend Income $ 0 $ 35,634 $ 320,451 $ 290,831 $ 0
Mortality and expense charges 15,058 258,494 49,250 47,067 119,432
Net Investment Income (Loss) (15,058) (222,860) 271,201 243,764 (119,432)
Gain (Loss) on Investments:
Net realized gain (loss) 247,298 4,220,640 (25,051) 56,086 (815,894)
Net change in unrealized
appreciation (depreciation) 1,959,262 9,256,574 (218,303) (18,645) 1,583,201
Net Gain (Loss) 2,206,560 13,477,214 (243,354) 37,441 767,307
Increase (Decrease) in
net assets from operations $ 2,191,502 $ 13,254,354 $ 27,847 $ 281,205 $ 647,875
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
AUL American Unit Trust
STATEMENTS OF CHANGES IN NET ASSETS
AUL American Series Fund
<TABLE>
<CAPTION>
Equity Money Market Bond
<S> <C> <C> <C> <C> <C> <C>
Year Year Year Year Year Year
ended ended ended ended ended ended
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99 12/31/98
Increase in Net Assets
from Operations:
Net Investment Income
(Loss) $ 7,384,137 $ 3,656,254 $ 526,077 $ 285,448 $ 617,608 $ 652,594
Net realized gain (loss) 2,919,543 3,608,786 0 0 (177,220) 254,972
Net change in unrealized
appreciation
(depreciation) (11,074,489) (5,156,717) 0 0 (764,376) (170,174)
Increase (Decrease)
in net assets
from operations (770,809) 2,108,323 526,077 285,448 (323,988) 737,392
Contract Owner Transactions:
Proceeds from units sold 13,860,546 13,209,744 91,529,796 46,547,976 11,709,384 17,474,578
Cost of units redeemed (14,819,201) (8,168,235) (80,641,877) (43,481,629)(10,985,258)(13,767,123)
Increase (Decrease) (958,655) 5,041,509 10,887,919 3,066,347 724,126 3,707,455
Net increase (decrease) (1,729,464) 7,149,832 11,413,996 3,351,795 400,138 4,444,847
Net Assets, beginning
of year 41,104,938 33,955,106 10,701,526 7,349,731 12,935,764 8,490,917
Net Assets, end of year $ 39,375,474 $ 41,104,938 $ 22,115,522 $ 10,701,526 $13,335,902 $12,935,764
Units sold 4,841,239 4,750,246 68,064,697 35,822,473 6,402,395 9,671,190
Units redeemed (5,162,554) (2,959,555) (59,971,356) (33,485,508) (6,013,349) (7,605,386)
Net Increase (Decrease) (321,315) 1,790,691 8,093,341 2,336,965 389,046 2,065,804
Units outstanding, beginning
of year 14,376,727 12,586,036 8,101,398 5,764,433 7,003,232 4,937,428
Units outstanding,
end of year 14,055,412 14,376,727 16,194,739 8,101,398 7,392,278 7,003,232
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
AUL American Unit Trust
STATEMENTS OF CHANGES IN NET ASSETS (continued)
AUL American Series Fund
<TABLE>
<CAPTION>
Managed Tactical Asset Allocation Conservative Investor
<S> <C> <C> <C> <C> <C> <C>
Year Year Year Year Year 5/1/98
ended ended ended ended ended (commencement)
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99 to 12/31/98
Increase in Net Assets
from Operations:
Net Investment Income
(Loss) $ 3,503,164 $ 2,170,811 $ 805 $ 801 $ 12,986 $ 1,251
Net realized gain (loss) 1,221,117 1,475,867 (174) (115) 1,541 0
Net change in unrealized
appreciation
(depreciation) (5,248,816) (1,908,536) (2,661) (1,555) (6,257) 1,439
Increase (Decrease)
in net assets
from operations (524,535) 1,738,142 (2,030) (869) 8,270 2,690
Contract Owner Transactions:
Proceeds from units sold 4,931,465 7,792,884 5,809 43,804 203,624 98,567
Cost of units redeemed (6,363,265) (5,039,746) (2,262) (949) (93,964) 0
Increase (Decrease) (1,431,800) 2,753,138 3,547 42,855 109,660 98,567
Net increase (decrease) (1,956,335) 4,491,280 1,517 41,987 117,930 101,257
Net Assets, beginning
of year 28,256,580 23,765,300 42,098 111 101,257 0
Net Assets, end of year $ 26,300,245 $ 28,256,580 $ 43,615 $ 42,098 $ 219,187 $ 101,257
Units sold 2,095,316 3,432,189 4,958 36,499 191,968 96,638
Units redeemed (2,698,185) (2,228,278) (2,013) (803) (88,194) 0
Net Increase (Decrease) (602,869) 1,203,911 2,945 35,696 103,774 96,638
Units outstanding, beginning
of year 12,020,235 10,816,324 35,796 100 96,638 0
Units outstanding,
end of year 11,417,366 12,020,235 38,741 35,796 200,412 96,638
</TABLE>
The accompanying notes are an integral part of the finanacial statements.
12
<PAGE>
AUL American Unit Trust
STATEMENTS OF 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>
Year 5/1/98 Year 5/1/98 Year Year
ended (commencement) ended (commencement) ended ended
12/31/99 to 12/31/98 12/31/99 to 12/31/98 12/31/99 12/31/98
Increase in Net Assets
from Operations:
Net Investment Income
(Loss) $ 16,088 $ 1,568 $ 9,768 $ 803 $ 1,475,411 $ 1,398,757
Net realized gain (loss) 2,860 0 10,855 2,351 (488,300) 120,126
Net change in unrealized
appreciation
(depreciation) 530 4,839 (4,178) 5,717 230,867 (2,521,237)
Increase (Decrease)
in net assets
from operations 19,478 6,407 16,445 8,871 1,217,978 (1,002,354)
Contract Owner Transactions:
Proceeds from units sold 167,021 185,260 310,618 159,391 6,876,495 11,184,502
Cost of units redeemed (60,785) 0 (281,917) (24,134) (6,403,576) (5,953,368)
Increase (Decrease) 106,236 185,260 28,701 135,257 472,919 5,231,134
Net increase (decrease) 125,714 191,667 45,146 144,128 1,690,897 4,228,780
Net Assets, beginning
of year 191,667 0 144,128 0 17,770,667 13,541,887
Net Assets, end of year $ 317,381 $ 191,667 $ 189,274 $ 144,128 $19,461,564 $17,770,667
Units sold 158,143 184,334 290,526 163,479 4,129,509 6,720,498
Units redeemed (56,915) 0 (264,016) (24,543) (3,845,050) (3,585,586)
Net Increase (Decrease) 101,228 184,334 26,510 138,936 284,459 3,134,912
Units outstanding, beginning
of year 184,334 0 138,936 0 11,188,244 8,053,332
Units outstanding,
end of year 285,562 184,334 165,446 138,936 11,472,703 11,118,244
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
Aul American Unit Trust
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Fidelity
<TABLE>
<CAPTION>
Growth Overseas Asset Manager
<S> <C> <C> <C> <C> <C> <C>
Year Year Year Year Year Year
ended ended ended ended ended ended
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99 12/31/98
Increase in Net Assets
from Operations:
Net Investment Income
(Loss) $ 9,385,728 $ 6,854,204 $ 460,422 $ 918,355 $ 4,264,898 $ 5,695,582
Net realized gain (loss) 6,752,711 5,028,903 1,628,957 603,428 1,222,593 1,708,930
Net change in unrealized
appreciation
(depreciation) 21,208,589 11,659,673 4,797,707 226,629 1,767,972 216,304
Increase (Decrease)
in net assets
from operations 37,347,028 23,542,780 6,887,086 1,748,412 7,255,463 7,620,816
Contract Owner Transactions:
Proceeds from units sold 55,481,730 35,267,762 28,987,886 20,264,193 22,121,056 19,851,423
Cost of units redeemed (35,018,964) (20,979,905) (28,474,403) (19,060,642)(13,698,460) (9,007,408)
Increase (Decrease) 20,462,766 14,287,857 513,483 1,203,551 8,422,596 10,844,015
Net increase (decrease) 57,809,794 37,830,637 7,400,569 2,951,963 15,678,059 18,464,831
Net Assets, beginning
of year 92,949,615 55,118,978 17,155,975 14,204,012 68,757,041 50,292,210
Net Assets, end of year $150,759,409 $ 92,949,615 $ 24,556,544 $ 17,155,975 $84,435,100 $68,757,041
Units sold 17,264,043 14,692,263 15,443,839 12,061,342 11,604,398 11,530,487
Units redeemed (10,926,294) (8,749,719) (15,270,934) (11,270,221) (7,163,907) (5,253,388)
Net Increase (Decrease) 6,337,749 5,942,544 172,905 791,121 4,440,491 6,277,099
Units outstanding, beginning
of year 32,435,920 26,493,376 10,099,671 9,308,550 37,109,026 30,831,927
Units outstanding,
end of year 38,773,669 32,435,920 10,272,576 10,099,671 41,549,517 37,109,026
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
AUL American Unit Trust
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Fidelity
<TABLE>
<CAPTION>
Index 500 Equity-Income Contrafund
<S> <C> <C> <C> <C> <C> <C>
Year Year Year Year Year Year
ended ended ended ended ended ended
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99 12/31/98
Increase in Net Assets
from Operations:
Net Investment Income
(Loss) $ 135,592 $ 944,883 $ 631,977 $ 616,019 $ 833,565 $ 721,500
Net realized gain (loss) 4,725,317 5,977,429 683,568 592,037 1,324,679 1,399,625
Net change in unrealized
appreciation
(depreciation) 15,439,605 8,181,814 (448,453) 236,852 6,740,895 3,972,316
Increase (Decrease)
in net assets
from operations 20,300,514 15,104,126 867,092 1,444,908 8,899,139 6,093,441
Contract Owner Transactions:
Proceeds from units sold 62,207,216 54,712,307 7,343,259 7,597,451 17,781,195 13,525,264
Cost of units redeemed (31,484,676) (23,200,129) (4,657,852) (2,838,931) (6,128,638) (4,885,163)
Increase (Decrease) 30,722,540 31,512,178 2,685,407 4,758,520 11,652,557 8,640,101
Net increase (decrease) 51,023,054 46,616,304 3,552,499 6,203,428 20,551,696 14,733,542
Net Assets, beginning
of year 88,619,796 42,003,492 18,381,333 12,177,905 31,401,748 16,668,206
Net Assets, end of year $139,642,850 $ 88,619,796 $ 21,933,832 $ 18,381,333 $51,953,444 $31,401,748
Units sold 19,979,586 21,289,312 3,622,841 4,148,951 6,946,163 6,565,456
Units redeemed (10,052,745) (9,071,095) (2,311,530) (1,570,926) (2,361,599) (2,370,377)
Net Increase (Decrease) 9,926,841 12,218,217 1,311,311 2,578,025 4,584,564 4,195,079
Units outstanding, beginning
of year 30,592,950 18,374,733 9,537,700 6,959,675 13,160,702 8,965,623
Units outstanding,
end of year 40,519,791 30,592,950 10,849,011 9,537,700 17,745,266 13,160,702
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
AUL American Unit Trust
STATEMENTS OF 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>
Year Year Year Year Year Year
ended ended ended ended ended ended
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99 12/31/98
Increase in Net Assets
from Operations:
Net Investment Income
(Loss) $ (32,801)$ 82,952 $ 4,378,195 $ 3,771,759 $ 386,984 $ 494,466
Net realized gain (loss) 16,020 (145,811) 4,990,390 2,252,193 22,288 112,545
Net change in unrealized
appreciation
(depreciation) 1,570,713 29,319 8,453,020 5,111,555 (78,511) 140,925
Increase (Decrease)
in net assets
from operations 1,553,932 (33,540) 17,821,605 11,135,507 330,761 747,936
Contract Owner Transactions:
Proceeds from units sold 1,578,349 1,025,794 60,560,768 25,946,680 9,364,553 11,058,290
Cost of units redeemed (814,432) (1,144,715) (36,135,832) (14,522,954) (8,708,522) (8,763,534)
Increase (Decrease) 763,917 (118,921) 24,424,936 11,423,726 656,031 2,294,756
Net increase (decrease) 2,317,849 (152,461) 42,246,541 22,559,233 986,792 3,042,692
Net Assets, beginning
of year 2,157,239 2,309,700 41,675,291 19,116,058 4,797,736 1,755,044
Net Assets, end of year $ 4,475,088 $ 2,157,239 $ 83,921,832 $ 41,675,291 $ 5,784,528 $ 4,797,736
Units sold 1,169,272 928,469 21,177,833 12,309,431 4,531,362 5,929,115
Units redeemed (639,509) (993,436) (12,633,768) (6,947,796) (4,208,365) (4,715,991)
Net Increase (Decrease) 529,763 (64,967) 8,544,065 5,361,635 322,997 1,213,124
Units outstanding, beginning
of year 1,905,162 1,970,129 16,282,040 10,920,405 2,283,661 1,070,537
Units outstanding,
end of year 2,434,925 1,905,162 24,826,105 16,282,040 2,606,658 2,283,661
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
AUL American Unit Trust
STATEMENTS OF CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
T. Rowe Price PBHG
Equity Income Growth II Technology &
Communications
<S> <C> <C> <C> <C> <C> <C>
Year Year Year Year Year Year
ended ended ended ended ended ended
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99 12/31/98
Increase in Net Assets
from Operations:
Net Investment Income
(Loss) $ 2,149,603 $ 1,377,162 $ (13,747)$ (2,790)$ (15,058)$ (2,184)
Net realized gain (loss) 1,123,495 1,296,725 323,168 (173) 247,298 (2,571)
Net change in unrealized
appreciation
(depreciation) (2,559,217) (534,704) 722,768 48,875 1,959,262 67,736
Increase (Decrease)
in net assets
from operations 713,881 2,139,183 1,032,189 45,912 2,191,502 62,981
Contract Owner Transactions:
Proceeds from units sold 13,993,815 19,653,169 2,563,649 396,424 2,438,309 236,715
Cost of units redeemed (8,963,830) (5,338,408) (1,217,417) (34,462) (676,330) (116,050)
Increase (Decrease) 5,029,985 14,314,761 1,346,232 361,962 1,761,979 120,665
Net increase (decrease) 5,743,866 16,453,944 2,378,421 407,874 3,953,481 183,646
Net Assets, beginning
of year 37,980,070 21,526,126 470,219 62,345 288,557 104,911
Net Assets, end of year $ 43,723,936 $ 37,980,070 $ 2,848,640 $ 470,219 $ 4,242,038 $ 288,557
Units sold 6,721,707 10,256,308 1,555,614 385,073 980,325 215,014
Units redeemed (4,355,598) (2,821,549) (690,718) (30,705) (241,289) (102,552)
Net Increase (Decrease) 2,366,109 7,434,759 864,896 354,368 739,036 112,462
Units outstanding, beginning
of year 19,081,441 11,646,682 412,873 58,505 214,047 101,585
Units outstanding,
end of year 21,447,550 19,081,441 1,277,769 412,873 953,083 214,047
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
AUL American Unit Trust
STATEMENTS OF CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
Janus SAFECO
Worldwide Growth Flexible Income Equity
<S> <C> <C> <C> <C> <C> <C>
Year Year Year Year Year Year
ended ended ended ended ended ended
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99 12/31/98
Increase in Net Assets
from Operations:
Net Investment Income
(Loss) $ (222,860)$ 156,265 $ 271,201 $ 87,267 $ 243,764 $ 125,134
Net realized gain (loss) 4,220,640 (401,473) (25,051) 5,591 56,086 11,324
Net change in unrealized
appreciation
(depreciation) 9,256,574 1,523,872 (218,303) (12,265) (18,645) 155,729
Increase (Decrease)
in net assets
from operations 13,254,354 1,278,664 27,847 80,593 281,205 292,187
Contract Owner Transactions:
Proceeds from units sold 34,939,204 15,654,275 3,714,331 2,506,207 2,911,189 2,516,740
Cost of units redeemed (19,222,537) (7,227,614) (1,103,472) (319,886) (619,691) (111,758)
Increase (Decrease) 15,716,667 8,426,661 2,610,859 2,186,321 2,291,498 2,404,982
Net increase (decrease) 28,971,021 9,705,325 2,638,706 2,266,914 2,572,703 2,697,169
Net Assets, beginning
of year 12,133,125 2,427,800 2,580,571 313,657 2,913,292 216,123
Net Assets, end of year $ 41,104,146 $ 12,133,125 $ 5,219,277 $ 2,580,571 $ 5,485,995 $ 2,913,292
Units sold 19,640,460 11,993,056 3,189,154 2,194,288 1,923,486 1,932,127
Units redeemed (10,563,525) (5,761,517) (950,728) (279,572) (408,349) (83,466)
Net Increase (Decrease) 9,076,935 6,231,539 2,238,426 1,914,716 1,515,137 1,848,661
Units outstanding, beginning
of year 8,357,911 2,126,372 2,204,070 289,354 2,034,751 186,090
Units outstanding,
end of year 17,434,846 8,357,911 4,442,496 2,204,070 3,549,888 2,034,751
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
AUL American Unit Trust
STATEMENTS OF CHANGES IN NET ASSETS (continued)
SAFECO
<TABLE>
<CAPTION>
Growth
<S> <C> <C>
Year Year
ended ended
12/31/99 12/31/98
Increase in Net Assets
from Operations:
Net Investment Income
(Loss) $ (119,432)$ 918,319
Net realized gain (loss) (815,894) (131,487)
Net change in unrealized
appreciation
(depreciation) 1,583,201 (1,196,621)
Increase (Decrease)
in net assets
from operations 647,875 (409,789)
Contract Owner Transactions:
Proceeds from units sold 4,676,377 10,102,077
Cost of units redeemed (3,109,005) (1,752,970)
Increase (Decrease) 1,567,372 8,349,107
Net increase (decrease) 2,215,247 7,939,318
Net Assets. beginning
of year 9,444,623 1,505,305
Net Assets, end of year $ 11,659,870 $ 9,444,623
Units sold 3,563,271 6,848,637
Units redeemed (2,359,033) (1,229,365)
Net Increase (Decrease) 1,204,238 5,619,272
Units outstanding, beginning
of year 6,688,427 1,069,155
Units outstanding,
end of year 7,892,665 6,688,427
</TABLE>
The accompanying notes are an integral part of the financial statements.
19
<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 (Equity Income, Growth, High Income,
Overseas) and Fidelity Variable Insurance Products Fund II(Asset Manager,
Contrafund, Index 500) (Fidelity), American Century Variable Portfolios, Inc.
(American Century), Alger American Fund (Alger), 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 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 compensationfor 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, 1999 and 1998 were $8,066,546 and $5,223,184, 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 participants account
which may not exceed the lesser of 0.5% of the participants 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. Administration charges are waived
if the account balance exceeds a certain amount. The charges incurred during the
years ended December 31, 1999 and 1998 were $267,806 and $262,069, respectively.
notes to financial statements (continued)
20
<PAGE>
NOTES TO FINANACIAL STATEMENTS (continued)
2. Account Charges (continued)
AUL may assess a withdrawal charge on withdrawals that exceed 10% of the
participants 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 participants 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 years ended December 31, 1999 and 1998 were $492,409 and $303,763,
respectively.
3. Accumulation Unit Value
The change in the Accumulation Unit Value per unit for the year ended December
31, 1999 is:
<TABLE>
<CAPTION>
12/31/99 12/31/98 Change
<S> <C> <C> <C>
AUL American Series Fund:
Equity $ 2.801463 $ 2.858297 (2.0%)
Money Market 1.365432 1.320892 3.4%
Bond 1.804008 1.847200 (2.3%)
Managed 2.303541 2.348652 (1.9%)
Tactical Asset Allocation 1.125687 1.175785 (4.3%)
Conservative Investor 1.093664 1.046823 4.5%
Moderate Investor 1.111433 1.039569 6.9%
Aggressive Investor 1.144073 1.037132 10.3%
Fidelity:
High Income 1.696336 1.588183 6.8%
Growth 3.888193 2.864673 35.7%
Overseas 2.390496 1.697134 40.9%
Asset Manager 2.032156 1.852296 9.7%
Index 500 3.446288 2.895747 19.0%
Equity-Income 2.021734 1.925332 5.0%
Contrafund 2.927735 2.385912 22.7%
American Century:
VP Capital Appreciation 1.837874 1.131147 62.5%
Alger:
American Growth 3.380386 2.559334 32.1%
Calvert:
Social Mid Cap Growth 2.219136 2.100672 5.6%
T. Rowe Price:
Equity Income 2.038645 1.990312 2.4%
PBHG:
Growth II 2.229388 1.138978 95.7%
Technology &
Communications 4.450861 1.347791 230.2%
</TABLE>
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. Accumulation Unit Value (continued)
<TABLE>
<CAPTION>
12/31/99 12/31/98 Change
<S> <C> <C> <C>
Janus:
Worldwide Growth $ 2.357586 $ 1.451645 62.4%
Flexible Income 1.174794 1.170811 0.3%
Safeco:
Equity 1.545400 1.431636 7.9%
Growth 1.477304 1.412139 4.6%
</TABLE>
4. Cost of Investments
The cost of investments at December 31, 1999 is:
AUL American Series Fund:
Equity $ 47,331,372
Money Market 22,115,522
Bond 14,347,994
Managed 29,418,598
Tactical Asset Allocation 47,827
Conservative Investor 224,005
Moderate Investor 312,012
Aggressive Investor 187,735
Fidelity:
High Income 20,355,117
Growth 109,016,139
Overseas 19,652,755
Asset Manager 75,088,934
Index 500 111,071,408
Equity-Income 20,492,067
Contrafund 38,821,551
American Century:
VP Capital Appreciation 3,006,303
Alger:
American Growth $ 69,005,481
Calvert:
Social Mid Cap Growth 5,857,864
T. Rowe Price:
Equity Income 44,514,459
PBHG:
Growth II 2,078,871
Technology &
Communications 2,228,590
Janus:
Worldwide Growth 30,334,538
Flexible Income 5,453,681
Safeco:
Equity 5,359,492
Growth 11,453,770
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
5. Net Assets
Net Assets at December 31, 1999 are:
<TABLE>
<CAPTION>
AUL American Series Fund
<S> <C> <C> <C> <C> <C>
Tactical Asset
Equity Money Market Bond Managed Allocation
Proceeds from units sold $ 60,814,572 $ 200,924,076 $ 41,599,344 $ 37,402,670 $ 49,712
Cost of units redeemed (36,039,536) (180,074,000) (29,940,164) (20,280,175) (3,210)
Net investment income (loss) 12,734,687 1,265,446 2,603,229 8,488,736 1,615
Net realized gain (loss) 9,821,649 0 85,585 3,807,367 (290)
Unrealized appreciation
(depreciation) (7,955,898) 0 (1,012,092) (3,118,353) (4,212)
$ 39,375,474 $ 22,115,522 $ 13,335,902 $ 26,300,245 $ 43,615
</TABLE>
<TABLE>
<CAPTION>
AUL American Series Fund Fidelity
<S> <C> <C> <C> <C> <C>
Conservative Moderate Aggressive
Investor Investor Investor High Income Growth
Proceeds from units sold $ 302,191 $ 352,282 $ 470,009 $ 34,530,850 $153,583,804
Cost of units redeemed (93,964) (60,786) (306,051) (18,664,024) (80,815,917)
Net investment income (loss) 14,237 17,656 10,571 4,253,240 18,352,099
Net realized gain (loss) 1,541 2,860 13,206 235,051 17,896,153
Unrealized appreciation
(depreciation) (4,818) 5,369 1,539 (893,553) 41,743,270
$ 219,187 $ 317,381 $ 189,274 $ 19,461,564 $150,759,409
</TABLE>
<TABLE>
<CAPTION>
Fidelity
<S> <C> <C> <C> <C> <C>
Overseas Asset Manager Index 500 Equity-Income Contrafund
Proceeds from units sold $ 84,818,381 $ 95,484,538 $ 169,746,264 $ 26,970,789 $ 48,367,019
Cost of units redeemed (71,753,294) (40,207,719) (76,043,531) (9,796,188) (14,531,655)
Net investment income (loss) 2,208,953 15,833,497 1,493,504 1,784,097 1,612,234
Net realized gain (loss) 4,378,715 3,978,618 15,875,171 1,533,369 3,373,953
Unrealized appreciation
(depreciation) 4,903,789 9,346,166 28,571,442 1,441,765 13,131,893
$ 24,556,544 $ 84,435,100 $ 139,642,850 $ 21,933,832 $ 51,953,444
</TABLE>
<TABLE>
<CAPTION>
American
Century Alger Calvert T. Rowe Price PBHG
<S> <C> <C> <C> <C> <C>
VP Capital American Social Mid Cap
Appreciation Growth Growth Equity Income Growth II
Proceeds from units sold $ 6,604,177 $ 117,358,496 $ 32,786,929 $ 54,292,725 $ 3,046,541
Cost of units redeemed (3,504,735) (65,748,841) (28,386,800) (17,166,370) (1,273,502)
Net investment income (loss) 198,252 8,141,714 1,043,607 4,426,751 (16,823)
Net realized gain (loss) (291,391) 9,254,112 414,128 2,961,353 322,655
Unrealized appreciation
(depreciation) 1,468,785 14,916,351 (73,336) (790,523) 769,769
$ 4,475,088 $ 83,921,832 $ 5,784,528 $ 43,723,936 $ 2,848,640
</TABLE>
23
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
5. Net Assets (continued)
Net Assets at December 31, 1999 are:
<TABLE>
<CAPTION>
PBHG Janus Safeco
<S> <C> <C> <C> <C> <C>
Technology & Worldwide Flexible
Communications Growth Income Equity Growth
Proceeds from units sold $ 2,793,456 $ 53,154,129 $ 6,630,810 $ 5,640,632 $ 16,820,035
Cost of units redeemed (792,400) (26,571,978) (1,526,014) (732,339) (5,504,533)
Net investment income (loss) (17,657) (69,482) 365,445 383,915 1,036,005
Net realized gain (loss) 245,191 3,821,869 (16,560) 67,284 (897,737)
Unrealized appreciation
(depreciation) 2,013,448 10,769,608 (234,404) 126,503 206,100
$ 4,242,038 $ 41,104,146 $ 5,219,277 $ 5,485,995 $ 11,659,870
</TABLE>
24
<PAGE>
AUL
American United Life Insurance Company
One American Square
P.O. Box 368
Indianapolis, Indiana 46206-0368
www.aul.com
P-13118B 01/00
