SEMI-ANNUAL REPORT
FOR
AUL AMERICAN UIT TRUYST
JUNE 30, 2000
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
Recent evidence suggests the growth rate of the U.S. economy is finally
moderating as consumer spending and residential real estate activity slowed
during the second quarter. Although second quarter GDP rose at a 5.2% annualized
rate, many economists believe economic growth during the second half of this
year will slow to a more moderate 3.5% to 4.0% rate, well within the Federal
Reserve's estimate of the non-inflationary growth potential for our economy.
Federal Reserve intervention is a primary factor contributing to this slowdown.
Fearing that inflationary pressures were mounting, Fed officials raised the
Federal Funds rate by 175 basis points during the past twelve months. The goal
was orchestrate a "soft landing" by slowing growth just enough to cut off
inflationary pressures while keeping unemployment stable.
During the first half of 2000, the equity market resembled a roller coaster ride
as investors rotated repeatedly between "New Economy" stocks (primarily
technology and growth companies) and "Old Economy" stocks (economically
sensitive, value companies). The NASDAQ Composite, an index that is heavily
weighted in technology companies, experienced extremely volatile returns during
the first half of the year. Investors poured a great deal of money into
technology stocks, pushing this index up 24% from the beginning of the year to
its peak on March 10. The NASDAQ subsequently experienced a dramatic sell-off
during April and May and although a recovery occurred in late May, this index
still reported negative investment returns for the first six months of the year.
The S&P 500 and the Dow Jones Industrial Average, two other commonly quoted
equity benchmarks, also experienced negative returns during the first half of
the year.
Treasuries were the best performing sector of the bond market, outpacing
corporate bonds and mortgage-backed securities by a wide margin. The huge
federal government surplus has drastically reduced the supply of Treasuries.
Government buy backs of existing long Treasury issues helped boost thirty-year
Treasuries returns to 9.8% in the first half of the year, well ahead of the 4.0%
return for the Lehman Aggregate Bond Index as well as the returns of major stock
indices.
The late 1990s handsomely rewarded equity investors. Based on this experience,
many investors now consider 20% annual returns to be "normal." Since major
equity indices were still in negative territory for the first half of the year,
the equity market may have trouble repeating this remarkable performance in the
current year.
Signs of a slowing economy have raised the hopes of many bond investors that the
Federal Reserve Bank has won the battle against inflation, eliminating the need
for further short-term interest rate increases. The question remains, however,
whether inflation has truly been suppressed given the low 4% unemployment rate
in the U.S., higher energy prices, and mounting global economic strength.
In closing, American United Life remains committed to serving your
investmentneeds. We appreciate your continued confidence and support.
/s/ R. Stephen Radcliffe
R. Stephen Radcliffe, FSA
Chairman of the Board of Directors and President
Indianapolis, Indiana
July 31, 2000
1
<PAGE>
(This page is intentionally blank.)
2
<PAGE>
AUL American Unit Trust
STATEMENTS OF NET ASSETS
June 30, 2000
(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 $ 34,054,203 $ 21,346,278 $ 12,799,414 $ 23,959,045 $ 51,890
Net assets $ 34,054,203 $ 21,346,278 $ 12,799,414 $ 23,959,045 $ 51,890
Units outstanding 12,706,869 15,306,028 6,889,842 10,495,159 46,567
Accumulation unit value $ 2.68 $ 1.39 $ 1.86 $ 2.28 $ 1.11
</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 $ 210,794 $ 362,645 $ 228,758 $ 18,983,805 $ 177,582,108
Net assets $ 210,794 $ 362,645 $ 228,758 $ 18,983,805 $ 177,582,108
Units outstanding 192,391 329,708 203,487 11,834,070 43,722,249
Accumulation unit value $ 1.10 $ 1.10 $ 1.12 $ 1.60 $ 4.06
</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, 2000
(unaudited)
<TABLE>
<CAPTION>
Fidelity
Overseas Asset Manager Index 500 Equity-Income Contrafund
<S> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 25,209,601 $ 89,249,905 $ 152,878,310 $ 20,562,089 $ 56,551,244
Net assets $ 25,209,601 $ 89,249,905 $ 152,878,310 $ 20,562,089 $ 56,551,244
Units outstanding 11,177,816 44,497,227 44,897,232 10,514,204 19,693,510
Accumulation unit value $ 2.26 $ 2.01 $ 3.41 $ 1.96 $ 2.87
</TABLE>
<TABLE>
<CAPTION>
American
Century Alger Calvert
VP Capital American American American Social Mid Cap
Appreciation Growth Balanced Leveraged AllCap Growth
<S> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 8,912,794 $ 99,359,529 $ 8,578 $ 10,005 $ 7,242,154
Net assets $ 8,912,794 $ 99,359,529 $ 8,578 $ 10,005 $ 7,242,154
Units outstanding 4,156,318 28,577,977 8,884 11,845 2,945,272
Accumulation unit value $ 2.14 $ 3.48 $ 0.97 $ 0.84 $ 2.46
</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, 2000
(unaudited)
<TABLE>
<CAPTION>
T. Rowe Price PBHG Janus
Technology & Worldwide Flexible
Equity Income Growth II Communications Growth Income
<S> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 39,255,684 $ 7,828,472 $ 8,468,188 $ 62,589,058 $ 5,424,217
Net assets $ 39,255,684 $ 7,828,472 $ 8,468,188 $ 62,589,058 $ 5,424,217
Units outstanding 19,921,198 2,942,245 1,637,215 26,173,033 4,587,621
Accumulation unit value $ 1.97 $ 2.66 $ 5.17 $ 2.39 $ 1.18
SAFECO
Equity Growth
Assets:
Investments at value $ 6,028,632 $ 12,936,840
Net assets $ 6,028,632 $ 12,936,840
Units outstanding 4,043,170 8,683,596
Accumulation unit value $ 1.49 $ 1.49
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
AUL American Unit Trust
STATEMENTS OF OPERATIONS
For the six months ended June 30, 2000
(unaudited)
<TABLE>
<CAPTION>
AUL American Series Fund
<S> <C> <C> <C> <C> <C>
Tactical Asset
Equity Money Market Bond Managed Allocation
Investment income:
Dividend income $ - $ 575,466 $ 38,764 $ - $ 1,173
Mortality and expense charges 218,972 134,005 78,666 154,158 265
Net investment income (loss) (218,972) 441,461 (39,902) (154,158) 908
Gain (loss) on investments:
Net realized gain (loss) (512,956) - (323,997) (16,529) (308)
Net change in unrealized
appreciation (depreciation) (1,003,156) 8,175 728,710 (100,548) (1,137)
Net gain (loss) (1,516,112) 8,175 404,713 (117,077) (1,445)
Increase (decrease) in
net assets from operations $ (1,735,084) $ 449,636 $ 364,811 $ (271,235) $ (537)
</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 $ - $ - $ - $ 1,291,601 $ 16,996,862
Mortality and expense charges 1,291 2,079 1,232 117,950 1,008,606
Net investment income (loss) (1,291) (2,079) (1,232) 1,173,651 15,988,256
Gain (loss) on investments:
Net realized gain (loss) (1,483) 306 (756) (298,036) 4,144,542
Net change in unrealized
appreciation (depreciation) 2,195 (862) 1,136 (1,939,438) (12,687,032)
Net gain (loss) 712 (556) 380 (2,237,474) (8,542,490)
Increase (decrease) in
net assets from operations $ (579) $ (2,635)$ (852) $ (1,063,823) $ 7,445,766
The accompanying notes are an integral part of the financial statements.
</TABLE>
6
<PAGE>
AUL American Unit Trust
STATEMENTS OF OPERATIONS (continued)
For the six months ended June 30, 2000
(unaudited)
<TABLE>
<CAPTION>
Fidelity
Overseas Asset Manager Index 500 Equity-Income Contrafund
<S> <C> <C> <C> <C> <C>
Investment income:
Dividend income $ 2,449,211 $ 9,036,885 $ 2,056,139 $ 1,704,921 $ 6,760,685
Mortality and expense charges 151,455 531,019 889,340 125,620 334,503
Net investment income (loss) 2,297,756 8,505,866 1,166,799 1,579,301 6,426,182
Gain (loss) on investments:
Net realized gain (loss) 1,805,155 262,821 1,573,412 244,412 226,122
Net change in unrealized
appreciation (depreciation) (5,398,466) (9,855,445) (4,158,243) (2,602,073) (7,625,094)
Net gain (loss) (3,593,311) (9,592,624) (2,584,831) (2,357,661) (7,398,972)
Increase (decrease) in
net assets from operations $ (1,295,555) $ (1,086,758)$ (1,418,032) $ (778,360) $ (972,790)
</TABLE>
<TABLE>
<CAPTION>
American
Century Alger Calvert
VP Capital American American American Social Mid Cap
Appreciation Growth Balanced Leveraged AllCap Growth
<S> <C> <C> <C> <C> <C>
Investment income:
Dividend income $ 191,132 $ 12,323,830 $ - $ - $ -
Mortality and expense charges 41,494 568,260 - - 37,673
Net investment income (loss) 149,638 11,755,570 - - (37,673)
Gain (loss) on investments:
Net realized gain (loss) 240,794 1,379,829 - - 26,271
Net change in unrealized
appreciation (depreciation) 512,259 (10,606,557) 96 10,005 641,579
Net gain (loss) 753,053 (9,226,728) 96 10,005 667,850
Increase (decrease) in
net assets from operations $ 902,691 $ 2,528,842 $ 96 $ 10,005 $ 630,177
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
AUL American Unit Trust
STATEMENTS OF OPERATIONS (continued)
For the six months ended June 30, 2000
(unaudited)
<TABLE>
<CAPTION>
T. Rowe Price PBHG Janus
Technology & Worldwide Flexible
Equity Income Growth II Communications Growth Income
<S> <C> <C> <C> <C> <C>
Investment income:
Dividend income $ 1,051,526 $ - $ - $ 890,757 $ 145,310
Mortality and expense charges 246,526 38,577 42,126 335,818 32,008
Net investment income (loss) 805,000 (38,577) (42,126) 554,939 113,302
Gain (loss) on investments:
Net realized gain (loss) 14,392 802,152 2,159,055 10,242,595 (34,236)
Net change in unrealized
appreciation (depreciation) (2,453,618) (387,888) (1,731,297) (10,806,703) (44,750)
Net gain (loss) (2,439,226) 414,264 427,758 (564,108) (78,986)
Increase (decrease) in
net assets from operations $ (1,634,226)$ 375,687 $ 385,632 $ (9,169) $ (34,316)
</TABLE>
<TABLE>
<CAPTION>
SAFECO
Equity Growth
<S> <C> <C>
Investment income:
Dividend income $ - $ -
Mortality and expense charges 34,754 77,134
Net investment income (loss) (34,754) (77,134)
Gain (loss) on investments:
Net realized gain (loss) 10,941 (124,143)
Net change in unrealized
appreciation (depreciation) (166,605) 291,889
Net gain (loss) (155,664) 167,746
Increase (decrease) in
net assets from operations $ (190,418) $ 90,612
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
AUL American Unit Trust
STATEMENTS OF 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 6/30/00 ended ended 6/30/00 ended ended 6/30/00 ended
(unaudited) 12/31/99 (unaudited) 12/31/99 (unaudited) 12/31/99
Increase in net assets from operations:
Net investment income
(loss) $ (218,972) $ 7,384,137 $ 441,461 $ 526,077 $ (39,902) $ 617,608
Net realized gain (loss) (512,956) 2,919,543 - - (323,997) (177,220)
Net change in unrealized
appreciation
(depreciation) (1,003,156) (11,074,489) 8,175 - 728,710 (764,376)
Increase (decrease)
in net assets
from operations (1,735,084) (770,809) 449,636 526,077 364,811 (323,988)
Contract owner transactions:
Proceeds from units sold 5,328,853 13,860,546 75,514,113 91,529,796 4,074,236 11,709,384
Cost of units redeemed (8,915,040) (14,819,201) (76,732,993) (80,641,877) (4,975,535) (10,985,258)
Increase (decrease) (3,586,187) (958,655) (1,218,880) 10,887,919 (901,299) 724,126
Net increase (decrease) (5,321,271) (1,729,464) (769,244) 11,413,996 (536,488) 400,138
Net assets, beginning
of year 39,375,474 41,104,938 22,115,522 10,701,526 13,335,902 12,935,764
Net assets, end of year $ 34,054,203 $ 39,375,474 $ 21,346,278 $ 22,115,522 $ 12,799,414 $13,335,902
Units sold 2,025,218 4,841,239 54,701,899 68,064,697 2,235,826 6,402,395
Units redeemed (3,373,761) (5,162,554) (55,590,610) (59,971,356) (2,738,262) (6,013,349)
Net increase (decrease) (1,348,543) (321,315) (888,711) 8,093,341 (502,436) 389,046
Units outstanding, beginning
of year 14,055,412 14,376,727 16,194,739 8,101,398 7,392,278 7,003,232
Units outstanding,
end of year 12,706,869 14,055,412 15,306,028 16,194,739 6,889,842 7,392,278
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<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>
Six months Year Six months Year Six months Year
ended 6/30/00 ended ended 6/30/00 ended ended 6/30/00 ended
(unaudited) 12/31/99 (unaudited) 12/31/99 (unaudited) 12/31/99
Increase in net assets from operations:
Net investment income
(loss) $ (154,158) $ 3,503,164 $ 908 $ 805 $ (1,291) $ 12,986
Net realized gain (loss) (16,529) 1,221,117 (308) (174) (1,483) 1,541
Net change in unrealized
appreciation
(depreciation) (100,548) (5,248,816) (1,137) (2,661) 2,195 (6,257)
Increase (decrease)
in net assets
from operations (271,235) (524,535) (537) (2,030) (579) 8,270
Contract owner transactions:
Proceeds from units sold 4,230,877 4,931,465 11,542 5,809 25,894 203,624
Cost of units redeemed (6,300,842) (6,363,265) (2,730) (2,262) (33,708) (93,964)
Increase (decrease) (2,069,965) (1,431,800) 8,812 3,547 (7,814) 109,660
Net increase (decrease) (2,341,200) (1,956,335) 8,275 1,517 (8,393) 117,930
Net assets, beginning
of year 26,300,245 28,256,580 43,615 42,098 219,187 101,257
Net assets, end of year $ 23,959,045 $ 26,300,245 $ 51,890 $ 43,615 $ 210,794 $ 219,187
Units sold 1,906,810 2,095,316 10,166 4,958 24,048 191,968
Units redeemed (2,829,017) (2,698,185) (2,341) (2,013) (32,069) (88,194)
Net increase (decrease) (922,207) (602,869) 7,826 2,945 (8,021) 103,774
Units outstanding, beginning
of year 11,417,366 12,020,235 38,741 35,796 200,412 96,638
Units outstanding,
end of year 10,495,159 11,417,366 46,567 38,741 192,391 200,412
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<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>
Six months Year Six months Year Six months Year
ended 6/30/00 ended ended 6/30/00 ended ended 6/30/00 ended
(unaudited) 12/31/99 (unaudited) 12/31/99 (unaudited) 12/31/99
Increase in net assets from operations:
Net investment income
(Loss) $ (2,079) $ 16,088 $ (1,232) $ 9,768 $ 1,173,651 $ 1,475,411
Net realized gain (loss) 306 2,860 (756) 10,855 (298,036) (488,300)
Net change in unrealized
appreciation
(depreciation) (862) 530 1,136 (4,178) (1,939,438) 230,867
Increase (decrease)
in net assets
from operations (2,635) 19,478 (852) 16,445 (1,063,823) 1,217,978
Contract owner transactions:
Proceeds from units sold 71,190 167,021 174,845 310,618 4,532,516 6,876,495
Cost of units redeemed (23,291) (60,785) (134,509) (281,917) (3,946,453) (6,403,576)
Increase (decrease) 47,899 106,236 40,336 28,701 586,063 472,919
Net increase (decrease) 45,264 125,714 39,484 45,146 (477,760) 1,690,897
Net assets, beginning
of year 317,381 191,667 189,274 144,128 19,461,565 17,770,667
Net assets, end of year $ 362,645 $ 317,381 $ 228,758 $ 189,274 $ 18,983,805 $19,461,564
Units sold 65,924 158,143 158,688 290,526 2,768,312 4,129,509
Units redeemed (21,778) (56,915) (120,647) (264,016) (2,406,945) (3,845,050)
Net increase (decrease) 44,146 101,228 38,041 26,510 361,367 284,459
Units outstanding, beginning
of year 285,562 184,334 165,446 138,936 11,472,703 11,188,244
Units outstanding,
end of year 329,708 285,562 203,487 165,446 11,834,070 11,472,703
</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)
<TABLE>
<CAPTION>
Fidelity
Growth Overseas Asset Manager
<S> <C> <C> <C> <C> <C> <C>
Six months Year Six months Year Six months Year
ended 6/30/00 ended ended 6/30/00 ended ended 6/30/00 ended
(unaudited) 12/31/99 (unaudited) 12/31/99 (unaudited) 12/31/99
Increase in net assets from operations:
Net investment income
(loss) $ 15,988,256 $ 9,385,728 $ 2,297,756 $ 460,422 $ 8,505,866 $ 4,264,898
Net realized gain (loss) 4,144,542 6,752,711 1,805,155 1,628,957 262,821 1,222,593
Net change in unrealized
appreciation
(depreciation) (12,687,032) 21,208,589 (5,398,466) 4,797,707 (9,855,445) 1,767,972
Increase (decrease)
in net assets
from operations 7,445,766 37,347,028 (1,295,555) 6,887,086 (1,086,758) 7,255,463
Contract owner transactions:
Proceeds from units sold 59,259,998 55,481,730 18,850,469 28,987,886 19,221,197 22,121,056
Cost of units redeemed (39,883,065) (35,018,964) (16,901,857) (28,474,403) (13,319,634) (13,698,460)
Increase (decrease) 19,376,933 20,462,766 1,948,612 513,483 5,901,563 8,422,596
Net increase (decrease) 26,822,699 57,809,794 653,057 7,400,569 4,814,805 15,678,059
Net assets, beginning
of year 150,759,409 92,949,615 24,556,544 17,155,975 84,435,100 68,757,041
Net assets, end of year $ 177,582,108 $150,759,409 $ 25,209,601 $ 24,556,544 $ 89,249,905 $84,435,100
Units sold 15,101,770 17,264,043 8,293,495 15,443,839 9,617,736 11,604,398
Units redeemed (10,153,190) (10,926,294) (7,388,255) (15,270,934) (6,670,026) (7,163,907)
Net increase (decrease) 4,948,580 6,337,749 905,240 172,905 2,947,710 4,440,491
Units outstanding, beginning
of year 38,773,669 32,435,920 10,272,576 10,099,671 41,549,517 37,109,026
Units outstanding,
end of year 43,722,249 38,773,669 11,177,816 10,272,576 44,497,227 41,549,517
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
AUL American Unit Trust
STATEMENTS OF 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 6/30/00 ended ended 6/30/00 ended ended 6/30/00 ended
(unaudited) 12/31/99 (unaudited) 12/31/99 (unaudited) 12/31/99
Increase in net assets from operations:
Net investment income
(loss) $ 1,166,799 $ 135,592 $ 1,579,301 $ 631,977 $ 6,426,182 $ 833,565
Net realized gain (loss) 1,573,412 4,725,317 244,412 683,568 226,122 1,324,679
Net change in unrealized
appreciation
(depreciation) (4,158,243) 15,439,605 (2,602,073) (448,453) (7,625,094) 6,740,895
Increase (decrease)
in net assets
from operations (1,418,032) 20,300,514 (778,360) 867,092 (972,790) 8,899,139
Contract owner transactions:
Proceeds from units sold 42,363,870 62,207,216 3,951,045 7,343,259 10,066,917 17,781,195
Cost of units redeemed (27,710,377) (31,484,676) (4,544,428) (4,657,852) (4,496,327) (6,128,638)
Increase (decrease) 14,653,493 30,722,540 (593,383) 2,685,407 5,570,590 11,652,557
Net increase (decrease) 13,235,461 51,023,054 (1,371,743) 3,552,499 4,597,800 20,551,696
Net assets, beginning
of year 139,642,849 88,619,796 21,933,832 18,381,333 51,953,444 31,401,748
Net assets, end of year $ 152,878,310 $139,642,850 $ 20,562,089 $ 21,933,832 $ 56,551,244 $51,953,444
Units sold 12,672,702 19,979,586 2,023,554 3,622,841 3,493,199 6,946,162
Units redeemed (8,295,261) (10,052,745) (2,358,361) (2,311,530) (1,544,955) (2,361,599)
Net increase (decrease) 4,377,441 9,926,841 (334,807) 1,311,311 1,948,244 4,584,563
Units outstanding, beginning
of year 40,519,791 30,592,950 10,849,011 9,537,700 17,745,266 13,160,702
Units outstanding,
end of year 44,897,232 40,519,791 10,514,204 10,849,011 19,693,510 17,745,265
</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)
<TABLE>
<CAPTION>
American Century Alger
American
American Leveraged
VP Capital Appreciation American Growth Balanced AllCap
<S> <C> <C> <C> <C> <C> <C>
For the period For the period
Six months Year Six months Year from 5/01/00 from 5/01/00
ended 6/30/00 ended ended 6/30/00 ended (commencement) (commencement)
(unaudited) 12/31/99 (unaudited) 12/31/99 to 6/30/00 to 6/30/00
Increase in net assets from operations:
Net investment income
(loss) $ 149,638 $ (32,801) $ 11,755,570 $ 4,378,195 $ - $ -
Net realized gain (loss) 240,794 16,020 1,379,829 4,990,390 - -
Net change in unrealized
appreciation
(depreciation) 512,259 1,570,713 (10,606,557) 8,453,020 96 10,005
Increase (decrease)
in net assets
from operations 902,691 1,553,932 2,528,842 17,821,605 96 10,005
Contract owner transactions:
Proceeds from units sold 5,613,179 1,578,349 29,872,447 60,560,768 8,482 -
Cost of units redeemed (2,078,164) (814,432) (16,963,592) (36,135,832) - -
Increase (decrease) 3,535,015 763,917 12,908,855 24,424,936 8,482 -
Net increase (decrease) 4,437,706 2,317,849 15,437,697 42,246,541 8,578 10,005
Net assets, beginning
of year 4,475,088 2,157,239 83,921,832 41,675,291 - -
Net assets, end of year $ 8,912,794 $ 4,475,088 $ 99,359,529 $ 83,921,832 $ 8,578 $ 10,005
Units sold 2,755,675 1,169,272 8,701,781 21,177,833 8,884 11,845
Units redeemed (1,034,282) (639,509) 4,949,909) (12,633,768) - -
Net increase (decrease) 1,721,393 529,763 3,751,872 8,544,065 8,884 11,845
Units outstanding, beginning
of year 2,434,925 1,905,162 24,826,105 16,282,040 - -
Units outstanding,
end of year 4,156,318 2,434,925 28,577,977 24,826,105 8,884 11,845
</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)
<TABLE>
<CAPTION>
Calvert T. Rowe Price PBHG
Social Mid Cap Growth Equity Income Growth II
<S> <C> <C> <C> <C> <C> <C>
Six months Year Six months Year Six months Year
ended 6/30/00 ended ended 6/30/00 ended ended 6/30/00 ended
(unaudited) 12/31/99 (unaudited) 12/31/99 (unaudited) 12/31/99
Increase in net assets from operations:
Net investment income
(loss) $ (37,673) $ 386,984 $ 805,000 $ 2,149,603 $ (38,577) $ (13,747)
Net realized gain (loss) 26,271 22,288 14,392 1,123,495 802,152 323,168
Net change in unrealized
appreciation
(depreciation) 641,579 (78,511) (2,453,618) (2,559,217) (387,888) 722,768
Increase (decrease)
in net assets
from operations 630,177 330,761 (1,634,226) 713,881 375,687 1,032,189
Contract owner transactions:
Proceeds from units sold 3,581,509 9,364,553 10,013,785 13,993,815 10,296,140 2,563,649
Cost of units redeemed (2,754,060) (8,708,522) (12,847,811) (8,963,830) (5,691,995) (1,217,417)
Increase (decrease) 827,449 656,031 (2,834,026) 5,029,985 4,604,145 1,346,232
Net increase (decrease) 1,457,626 986,792 (4,468,252) 5,743,866 4,979,832 2,378,421
Net assets, beginning
of year 5,784,528 4,797,736 43,723,936 37,980,070 2,848,640 470,219
Net assets, end of year $ 7,242,154 $5,784,528 $ 39,255,684 $ 43,723,936 $7,828,472 $ 2,848,640
Units sold 1,536,489 4,531,362 5,039,230 6,721,707 4,050,154 1,555,614
Units redeemed (1,197,875) (4,208,365) (6,565,582) (4,355,598) (2,385,678) (690,718)
Net increase (decrease) 338,614 322,997 (1,526,352) 2,366,109 1,664,476 864,896
Units outstanding, beginning
of year 2,606,658 2,283,661 21,447,550 19,081,441 1,277,769 412,873
Units outstanding,
end of year 2,945,272 2,606,658 19,921,198 21,447,550 2,942,245 1,277,769
</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>
PBHG Janus
Technology & Communications Worldwide Growth Flexible Income
<S> <C> <C> <C> <C> <C> <C>
Six months Year Six months Year Six months Year
ended 6/30/00 ended ended 6/30/00 ended ended 6/30/00 ended
(unaudited) 12/31/99 (unaudited) 12/31/99 (unaudited) 12/31/99
Increase in net assets from operations:
Net investment income
(loss) $ (42,126) $ (15,058) $ 554,939 $ (222,860) $ 113,302 $ 271,201
Net realized gain (loss) 2,159,055 247,298 10,242,595 4,220,640 (34,236) (25,051)
Net change in unrealized
appreciation
(depreciation) (1,731,297) 1,959,262 (10,806,703) 9,256,574 (44,750) (218,303)
Increase (decrease)
in net assets
from operations 385,632 2,191,502 (9,169) 13,254,354 34,316 27,847
Contract owner transactions:
Proceeds from units sold 9,120,388 2,438,309 67,914,142 34,939,204 1,175,008 3,714,331
Cost of units redeemed (5,279,870) (676,330) (46,420,061) (19,222,537) (1,004,384) (1,103,472)
Increase (decrease) 3,840,518 1,761,979 21,494,081 15,716,667 170,624 2,610,859
Net increase (decrease) 4,226,150 3,953,481 21,484,912 28,971,021 204,940 2,638,706
Net assets, beginning
of year 4,242,038 288,557 41,104,146 12,133,125 5,219,277 2,580,571
Net assets, end of year $ 8,468,188 $ 4,242,038 $ 62,589,058 $ 41,104,146 $ 5,424,217 $5,219,277
Units sold 1,768,433 980,325 27,569,632 19,640,460 1,000,204 3,189,154
Units redeemed (1,084,301) (241,289) (18,831,445) (10,563,525) (855,079) (950,728)
Net increase (decrease) 684,132 739,036 8,738,187 9,076,935 145,125 2,238,426
Units outstanding, beginning
of year 953,083 214,047 17,434,846 8,357,911 4,442,496 2,204,070
Units outstanding,
end of year 1,637,215 953,083 26,173,033 17,434,846 4,587,621 4,442,496
</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>
SAFECO
Equity Growth
<S> <C> <C> <C> <C>
Six months Year Six months Year
ended 6/30/00 ended ended 6/30/00 ended
(unaudited) 12/31/99 (unaudited) 12/31/99
Increase in net assets from operations:
Net investment income
(loss) $ (34,754) $ 243,764 $ (77,134) $ (119,432)
Net realized gain (loss) 10,941 56,086 (124,143) (815,894)
Net change in unrealized
appreciation
(depreciation) (166,605) (18,645) 291,889 1,583,201
Increase (decrease)
in net assets
from operations (190,418) 281,205 90,612 647,875
Contract owner transactions:
Proceeds from units sold 1,544,872 2,911,189 8,810,814 4,676,377
Cost of units redeemed (811,817) (619,691) (7,624,456) (3,109,005)
Increase (decrease) 733,055 2,291,498 1,186,358 1,567,372
Net increase (decrease) 542,637 2,572,703 1,276,970 2,215,247
Net assets. beginning
of year 5,485,995 2,913,292 11,659,870 9,444,623
Net assets, end of year $ 6,028,632 $5,485,995 $ 12,936,840 $11,659,870
Units sold 1,048,414 1,923,486 5,771,949 3,563,271
Units redeemed (555,132) (408,349) (4,981,018) (2,359,033)
Net Increase (decrease) 493,282 1,515,137 790,931 1,204,238
Units outstanding, beginning
of year 3,549,888 2,034,751 7,892,665 6,688,427
Units outstanding,
end of year 4,043,170 3,549,888 8,683,596 7,892,665
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
(This Page is intentionally blank.)
<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 (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 June
30, 2000. 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 period ending December 31, 1999 and June 30, 2000 were $8,066,546 and
$5,203,531, 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. On some contracts, 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. Administration charges are waived if the
account balance exceeds a certain amount. For other contracts, the
administrative charge may be only $3.00 per quarter. The charges incurred
during the six months ended June 30, 2000 and the period ending December 31,
1999, were $185,058 and $267,806, respectively.
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. Account Charges (continued)
On certain contracts, 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. On other contracts AUL may
assess withdrawal charges ranging from 7% to 1%, depending on the account year.
The charges incurred during the six months ended June 30, 2000 and the year
ended December 31, 1999, were $646,478 and $492,409, respectively.
3. Accumulation Unit Value
The change in the Accumulation Unit Value per unit for the six months ended June
30, 2000, or from Commencement of operations, May 1, 2000 through June 30, 2000
is:
6/30/00 12/31/99 Change
<TABLE>
<CAPTION>
<S> <C> <C> <C>
AUL American Series Fund:
Equity $ 2.680084 $ 2.801463 -4.3%
Money Market 1.395129 1.365432 2.2%
Bond 1.857790 1.804008 3.0%
Managed 2.282846 2.303541 -0.9%
Tactical 1.113925 1.125687 -1.0%
Conservative Investor 1.095786 1.093664 0.2%
Moderate Investor 1.099922 1.111433 -1.0%
Aggressive Investor 1.124336 1.144073 -1.7%
Fidelity:
High Income 1.604140 1.696336 -5.4%
Growth 4.061605 3.888193 4.5%
Overseas 2.255312 2.390496 -5.7%
Asset Manager 2.005716 2.032156 -1.3%
Index 500 3.405028 3.446288 -1.2%
Equity Income 1.955592 2.021734 -3.3%
Contrafund 2.871404 2.927735 -1.9%
American Century:
VP Capital Appreciation 2.144209 1.837874 16.7%
Alger:
American Growth 3.476664 3.380386 2.8%
Calvert:
Social Mid Cap Growth 2.458776 2.219136 10.8%
T. Rowe Price:
Equity Income 1.970444 2.038645 -3.3%
</TABLE>
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. Accumulation Unit Value (continued)
6/30/00 12/31/99 Change
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PBHG:
Growth II $ 2.660612 $ 2.229388 19.3%
Technology &
Communications 5.172188 4.450861 16.2%
Janus:
Worldwide Growth 2.391357 2.357586 1.4%
Flexible Income 1.182360 1.174794 0.6%
Safeco:
Equity 1.491278 1.545400 -3.5%
Growth 1.489687 1.477304 0.8%
</TABLE>
6/30/00 05/01/00 Change
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Alger:
American Balanced $ 0.965560 $ 1.000000 -3.4%
American
Leveraged AllCap 0.844583 1.000000 -15.5%
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
4. Cost of Investments
The cost of investments at June 30, 2000, is:
AUL American Series Fund:
Equity $ 43,013,257
Money Market 21,338,103
Bond 13,082,796
Managed 27,177,946
Tactical 57,240
Conservative Investor 213,417
Moderate Investor 358,138
Aggressive Investor 226,083
Fidelity:
High Income $ 21,816,796
Growth 148,525,869
Overseas 25,704,278
Asset Manager 89,759,184
Index 500 128,465,112
Equity Income 21,722,397
Contrafund 51,044,445
American Century:
VP Capital Appreciation 6,931,750
Alger:
American Growth $ 95,049,736
American Balanced 8,482
American
Leveraged AllCap 9,814
Calvert:
Social Mid Cap Growth 6,673,911
T. Rowe Price:
Equity Income 42,499,825
PBHG:
Growth II 7,446,591
Technology &
Communications 8,186,037
Janus:
Worldwide Growth 62,626,153
Flexible Income 5,703,372
Safeco:
Equity 6,068,734
Growth 12,438,851
</TABLE>
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. Net Assets
Net Assets at June 30, 2000, are:
AUL American Series Fund
<TABLE>
<CAPTION>
Tactical Asset
Equity Money Market Bond Managed Allocation
<S> <C> <C> <C> <C> <C>
Proceeds from units sold $ 66,143,424 $ 276,438,189 $ 45,673,580 $ 41,633,546 $ 61,255
Cost of units redeemed (44,954,576) (256,806,993) (34,915,699) (26,581,017) (5,940)
Net investment income (loss) 12,515,715 1,706,907 2,563,327 8,334,579 2,523
Net realized gain (loss) 9,308,694 0 (238,412) 3,790,838 (598)
Unrealized appreciation
(depreciation) (8,959,054) 8,175 (283,382) (3,218,901) (5,350)
$ 34,054,203 $ 21,346,278 $ 12,799,414 $ 23,959,045 $ 51,890
AUL American Series Fund Fidelity
Conservative Moderate Aggressive
Investor Investor Investor High Income Growth
Proceeds from units sold $ 328,086 $ 423,472 $ 644,854 $ 39,063,368 $ 212,843,802
Cost of units redeemed (127,672) (84,077) (440,560) (22,610,477) (120,698,982)
Net investment income (loss) 12,945 15,577 9,339 5,426,891 34,340,354
Net realized gain (loss) 58 3,166 12,450 (62,986) 22,040,695
Unrealized appreciation
(depreciation) (2,623) 4,507 2,675 (2,832,991) 29,056,239
$ 210,794 $ 362,645 $ 228,758 $ 18,983,805 $ 177,582,108
Fidelity
Overseas Asset Manager Index 500 Equity-Income Contrafund
Proceeds from units sold $ 103,668,850 $ 114,705,735 $ 212,110,133 $ 30,921,835 $ 58,433,936
Cost of units redeemed (88,655,151) (53,527,353) (103,753,907) (14,340,617) (19,027,982)
Net investment income (loss) 4,506,709 24,339,363 2,660,303 3,363,398 8,038,416
Net realized gain (loss) 6,183,870 4,241,439 17,448,583 1,777,781 3,600,075
Unrealized appreciation
(depreciation) (494,677) (509,279) 24,413,198 (1,160,308) 5,506,799
$ 25,209,601 $ 89,249,905 $ 152,878,310 $ 20,562,089 $ 56,551,244
American
Century Alger Calvert
VP Capital American American American Social Mid Cap
Appreciation Growth Balanced Leveraged AllCap Growth
Proceeds from units sold $ 12,217,356 $ 147,230,943 $ 8,482 $ 9,814 $ 36,368,437
Cost of units redeemed (5,582,899) (82,712,433) 0 0 (31,140,860)
Net investment income (loss) 347,891 19,897,284 0 0 1,005,935
Net realized gain (loss) (50,598) 10,633,942 0 0 440,399
Unrealized appreciation
(depreciation) 1,981,044 4,309,793 96 191 568,243
$ 8,912,794 $ 99,359,529 $ 8,578 $ 10,005 $ 7,242,154
</TABLE>
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
5. Net Assets (continued)
Net Assets at June 30, 2000, are:
<TABLE>
<CAPTION>
T. Rowe Price PBHG Janus
<S> <C> <C> <C> <C> <C>
Technology & Worldwide Flexible
Equity Income Growth II Communications Growth Income
Proceeds from units sold $ 64,306,509 $ 13,342,680 $ 11,913,844 $ 121,068,272 $ 7,805,819
Cost of units redeemed (30,014,180) (6,965,497) (6,072,270) (72,992,039) (2,530,398)
Net investment income (loss) 5,231,751 (55,400) (59,782) 485,457 478,747
Net realized gain (loss) 2,975,745 1,124,808 2,404,245 14,064,463 (50,796)
Unrealized appreciation
(depreciation) (3,244,141) 381,881 282,151 (37,095) (279,155)
$ 39,255,684 $ 7,828,472 $ 8,468,188 $ 62,589,058 $ 5,424,217
SAFECO
Equity Growth
Proceeds from units sold $ 7,185,505 $ 25,630,850
Cost of units redeemed (1,544,156) (13,128,989)
Net investment income (loss) 349,161 958,870
Net realized gain (loss) 78,224 (1,021,880)
Unrealized appreciation
(depreciation) (40,102) 497,989
$ 6,028,632 $ 12,936,840
</TABLE>
23
<PAGE>
(This page is intenetionally blank.)
24
<PAGE>
AUL
American United Life Insurance Company
One American Square
P.O. Box 3687
Indianapolis, Indiana 46206-0368
www.aul.com
P-13972B 6/00
