<PAGE>
THE AMERICAN FRANKLIN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VUL-2
JUNE 30, 1997
SEMI-ANNUAL REPORT
SEPARATE ACCOUNT VUL-2 FUNDING
EQUIBUILDER II-TM- AND EQUIBUILDER III-TM- FLEXIBLE PREMIUM VARIABLE
LIFE INSURANCE POLICIES
Principal office located at:
#1 Franklin Square
Springfield, Illinois 62713
Semi-Annual Report Dated June 30, 1997
- --------------------------------------------------------------------------------
JUNE 30, 1997
SEMI-ANNUAL REPORT
VARIABLE INSURANCE PRODUCTS FUND
VARIABLE INSURANCE PRODUCTS FUND II
PRINCIPAL OFFICE LOCATED AT:
82 Devonshire Street
Boston, Massachusetts 02109
Semi-Annual Report Dated June 30, 1997
- --------------------------------------------------------------------------------
The Semi-Annual Report of Separate Account VUL-2 is prepared and provided by The
American Franklin Life Insurance Company. The Semi-Annual Reports of the
Variable Insurance Products Fund and the Variable Insurance Products
Fund II are prepared by Fidelity Investments.
- --------------------------------------------------------------------------------
This Semi-Annual Report is not to be construed as an offering for sale of any
American Franklin Life policy. No offering is made except in conjunction with a
prospectus which must precede or accompany this report.
<PAGE>
THE AMERICAN FRANKLIN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VUL-2
STATEMENT OF NET ASSETS
JUNE 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
MONEY EQUITY-
MARKET INCOME GROWTH OVERSEAS
DIVISION DIVISION DIVISION DIVISION
------------------------------------------------------------------------
ASSETS
<S> <C> <C> <C> <C>
Investments in Variable Insurance Products Fund and
Variable Insurance Products Fund II, at fair value: $ 3,250,253 $ 32,411,336 $ 44,346,583 $ 8,708,450
(Cost: See below)
Due from (to) General Account 26,962 (42,264) (50,675) (3,247)
------------------------------------------------------------------------
NET ASSETS $ 3,277,215 $ 32,369,072 $ 44,295,908 $ 8,705,203
------------------------------------------------------------------------
------------------------------------------------------------------------
Unit value, at June 30, 1997 $ 123.44 $ 271.45 $ 250.84 $ 179.75
------------------------------------------------------------------------
------------------------------------------------------------------------
Units outstanding, at June 30, 1997 26,550 119,246 176,590 48,429
------------------------------------------------------------------------
------------------------------------------------------------------------
Cost $ 3,302,316 $ 26,696,805 $ 34,649,717 $ 7,278,098
------------------------------------------------------------------------
------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
1
<PAGE>
<TABLE>
<CAPTION>
HIGH INVESTMENT ASSET INDEX ASSET CONTRA-
INCOME GRADE BOND MANAGER 500 MANAGER: FUND
DIVISION DIVISION DIVISION DIVISION GROWTH DIVISION DIVISION
--------------------------------------------------------------------------------------------------
ASSETS
<S> <C> <C> <C> <C> <C> <C>
Investments in Variable
Insurance Products Fund and
Variable Insurance
Products Fund II, at
fair value: $ 1,822,513 $ 1,815,097 $ 23,708,455 $ 12,014,272 $ 2,498,979 $ 8,913,549
(Cost: See below)
Due from (to) General Account (3,070) 4,638 (6,981) (20,119) 43 (22,924)
--------------------------------------------------------------------------------------------------
NET ASSETS $ 1,819,443 $ 1,819,735 $ 23,701,474 $ 11,994,153 $ 2,499,022 $ 8,890,625
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
Unit value, at June 30, 1997 $ 152.45 $ 138.77 $ 188.07 $ 209.74 $ 154.45 $ 160.63
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
Units outstanding, at
June 30, 1997 11,934 13,113 126,022 57,184 16,181 55,347
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
Cost $ 1,742,630 $ 1,777,875 $ 21,250,967 $ 9,876,949 $ 2,189,127 $ 7,712,899
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
</TABLE>
2
<PAGE>
THE AMERICAN FRANKLIN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VUL-2
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
MONEY EQUITY-
MARKET INCOME GROWTH OVERSEAS
DIVISION DIVISION DIVISION DIVISION
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Dividends from Variable Insurance Products Fund
and Variable Insurance Products Fund II $ 95,253 $ 2,548,247 $ 1,307,633 $ 606,526
Expenses
Mortality and expense risk charge 11,727 97,963 138,680 27,142
------------------------------------------------------------------------
Net investment income (expense) 83,526 2,450,284 1,168,953 579,384
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) 0 77,270 155,668 30,276
Net unrealized appreciation (depreciation)
Beginning of period (8,346) 4,288,372 6,366,508 786,945
End of period (52,063) 5,714,531 9,696,866 1,430,352
------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) during the period (43,717) 1,426,159 3,330,358 643,407
------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (43,717) 1,503,429 3,486,026 673,683
------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 39,809 $ 3,953,713 $ 4,654,979 $ 1,253,067
------------------------------------------------------------------------
------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE>
<TABLE>
<CAPTION>
HIGH INVESTMENT ASSET INDEX ASSET CONTRA-
INCOME GRADE BOND MANAGER 500 MANAGER: FUND
DIVISION DIVISION DIVISION DIVISION GROWTH DIVISION DIVISION
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Dividends from Variable
Insurance Products Fund
and Variable Insurance
Products Fund II $ 109,941 $ 100,671 $ 2,519,534 $ 247,126 $ 2,248 $ 174,269
Expenses
Mortality and expense
risk charge 5,420 6,437 80,161 29,912 6,261 22,926
------------------------------------------------------------------------------------------------
Net investment income (expense) 104,521 94,234 2,439,373 217,214 (4,013) 151,343
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) 6,262 (4,801) 55,829 39,092 3,080 8,863
Net unrealized
appreciation (depreciation)
Beginning of period 73,140 90,495 2,931,994 862,708 78,770 583,917
End of period 79,884 37,224 2,457,488 2,137,323 309,851 1,200,649
------------------------------------------------------------------------------------------------
Net change in unrealized
appreciation (depreciation)
during the period 6,744 (53,271) (474,506) 1,274,615 231,081 616,732
------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 13,006 (58,072) (418,677) 1,313,707 234,161 625,595
------------------------------------------------------------------------------------------------
Net increase in net assets
resulting from operations $ 117,527 $ 36,162 $ 2,020,696 $ 1,530,921 $ 230,148 $ 776,938
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
THE AMERICAN FRANKLIN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VUL-2
STATEMENTS OF CHANGES IN NET ASSETS
(UNAUDITED)
<TABLE>
<CAPTION>
MONEY EQUITY-
MARKET INCOME GROWTH OVERSEAS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 DIVISION DIVISION DIVISION DIVISION
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CHANGE IN NET ASSETS
FROM OPERATIONS:
Net investment income (expense) $ 83,526 $ 2,450,284 $ 1,168,953 $ 579,384
Net realized gain (loss) on investments 0 77,270 155,668 30,276
Net change in unrealized appreciation
(depreciation) on investments (43,717) 1,426,159 3,330,358 643,407
-------------------------------------------------------------------------
Net increase in net assets from operations 39,809 3,953,713 4,654,979 1,253,067
FROM POLICY RELATED TRANSACTIONS:
Net contract purchase payments 7,251,604 5,817,033 7,448,995 1,331,961
Transfers for policy related transactions (793,292) (2,684,800) (3,462,147) (704,226)
Transfers between Separate Account VUL-2's
Divisions, net (6,376,731) 1,457,276 1,186,475 81,745
-------------------------------------------------------------------------
Net increase in net assets from policy related
transactions 81,581 4,589,509 5,173,323 709,480
-------------------------------------------------------------------------
Increase in net assets 121,390 8,543,222 9,828,302 1,962,547
Net assets, beginning of period 3,155,825 23,825,850 34,467,606 6,742,656
-------------------------------------------------------------------------
Net assets, end of period $ 3,277,215 $ 32,369,072 $ 44,295,908 $ 8,705,203
-------------------------------------------------------------------------
-------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MONEY EQUITY-
MARKET INCOME GROWTH OVERSEAS
FOR THE YEAR ENDED DECEMBER 31, 1996 DIVISION DIVISION DIVISION DIVISION
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CHANGE IN NET ASSETS
FROM OPERATIONS:
Net investment income (expense) $ 90,006 $ 494,647 $ 1,305,736 $ 81,863
Net realized gain on investments 0 119,363 217,472 72,428
Net change in unrealized appreciation
(depreciation) on investments 8,305 2,103,869 2,290,153 475,238
-------------------------------------------------------------------------
Net increase in net assets from operations 98,311 2,717,879 3,813,361 629,529
FROM POLICY RELATED TRANSACTIONS:
Net contract purchase payments 14,105,404 8,358,063 11,727,262 2,440,157
Transfers for policy related transactions (745,614) (3,518,149) (5,082,906) (1,085,007)
Transfers between Separate Account VUL-2's
Divisions, net (12,247,504) 3,540,795 4,024,505 (158,617)
-------------------------------------------------------------------------
Net increase in net assets from policy related
transactions 1,112,286 8,380,709 10,668,861 1,196,533
-------------------------------------------------------------------------
Increase in net assets 1,210,597 11,098,588 14,482,222 1,826,062
Net assets, beginning of year 1,945,228 12,727,262 19,985,384 4,916,594
-------------------------------------------------------------------------
Net assets, end of year $ 3,155,825 $ 23,825,850 $ 34,467,606 $ 6,742,656
-------------------------------------------------------------------------
-------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
<TABLE>
<CAPTION>
HIGH INVESTMENT ASSET INDEX ASSET CONTRA-
FOR THE SIX MONTHS INCOME GRADE BOND MANAGER 500 MANAGER: FUND
ENDED JUNE 30, 1997 DIVISION DIVISION DIVISION DIVISION GROWTH DIVISION DIVISION
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CHANGE IN NET ASSETS
FROM OPERATIONS:
Net investment income
(expense) $ 104,521 $ 94,234 $ 2,439,373 $ 217,214 $ (4,013) $ 151,343
Net realized gain (loss)
on investments 6,262 (4,801) 55,829 39,092 3,080 8,863
Net change in unrealized
appreciation
(depreciation) on
investments 6,744 (53,271) (474,506) 1,274,615 231,081 616,732
------------------------------------------------------------------------------------------------
Net increase in net
assets from operations 117,527 36,162 2,020,696 1,530,921 230,148 776,938
FROM POLICY RELATED TRANSACTIONS:
Net contract purchase payments 440,679 250,648 3,108,073 2,916,535 772,475 2,676,491
Transfers for policy
related transactions (185,886) (162,656) (1,856,677) (884,615) (258,936) (775,406)
Transfers between Separate
Account VUL-2's Divisions, net 218,342 2,318 (178,997) 1,988,351 457,304 1,242,545
------------------------------------------------------------------------------------------------
Net increase in net assets
from policy related
transactions 473,135 90,310 1,072,399 4,020,271 970,843 3,143,630
------------------------------------------------------------------------------------------------
Increase in net assets 590,662 126,472 3,093,095 5,551,192 1,200,991 3,920,568
Net assets, beginning of period 1,228,781 1,693,263 20,608,379 6,442,961 1,298,031 4,970,057
------------------------------------------------------------------------------------------------
Net assets, end of period $ 1,819,44 $ 1,819,735 $ 23,701,474 $ 11,994,153 $ 2,499,022 $ 8,890,625
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
HIGH INVESTMENT ASSET INDEX ASSET CONTRA-
FOR THE YEAR ENDED INCOME GRADE BOND MANAGER 500 MANAGER: FUND
DECEMBER 31, 1996 DIVISION DIVISION DIVISION DIVISION GROWTH DIVISION DIVISION
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CHANGE IN NET ASSETS
FROM OPERATIONS:
Net investment income
(expense) $ 39,298 $ 56,393 $ 950,642 $ 33,984 $ 56,162 $ (6,210)
Net realized gain on
investments 8,967 3,089 212,679 55,003 3,633 14,914
Net change in unrealized
appreciation (depreciation)
on investments 39,105 (6,922) 1,427,096 753,837 83,858 580,665
--------------------------------------------------------------------------------------------------
Net increase in net
assets from operations 87,370 52,560 2,590,417 842,824 143,653 589,369
FROM POLICY RELATED
TRANSACTIONS:
Net contract purchase
payments 533,704 486,742 5,498,237 2,673,909 654,319 2,330,711
Transfers for policy
related transactions (192,712) (275,951) (3,080,444) (790,840) (178,249) (624,350)
Transfers between Separate
Account VUL-2's
Divisions, net 360,417 107,298 (498,477) 2,664,359 437,562 1,823,964
--------------------------------------------------------------------------------------------------
Net increase in net assets
from policy related
transactions 701,409 318,089 1,919,316 4,547,428 913,632 3,530,325
--------------------------------------------------------------------------------------------------
Increase in net assets 788,779 370,649 4,509,733 5,390,252 1,057,285 4,119,694
Net assets, beginning of year 440,002 1,322,614 16,098,646 1,052,709 240,746 850,363
--------------------------------------------------------------------------------------------------
Net assets, end of year $ 1,228,781 $ 1,693,263 $ 20,608,379 $ 6,442,961 $ 1,298,031 $ 4,970,057
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
THE AMERICAN FRANKLIN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VUL-2
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
1. NATURE OF OPERATIONS
The American Franklin Life Insurance Company (American Franklin) is a
wholly-owned subsidiary of The Franklin Life Insurance Company. American
Franklin established Separate Account VUL-2 (Account) as a unit investment
trust registered under the Investment Company Act of 1940. The Account,
which consists of ten investment divisions, was established on April 9,
1991 in conformity with Illinois Insurance Law. The assets in each
division are invested in units of beneficial interest (shares) of a
designated portfolio (Portfolio) of two mutual funds, sponsored by Fidelity
Investments, Variable Insurance Products Fund and Variable Insurance
Products Fund II (Funds). The Money Market, Equity-Income, Growth,
Overseas, and High Income Divisions of the Account are invested in shares
of a corresponding Portfolio of Variable Insurance Products Fund, while the
Investment Grade Bond, Asset Manager, Index 500, Asset Manager: Growth and
Contrafund Divisions of the Account are invested in shares of a
corresponding Portfolio of Variable Insurance Products Fund II. The
Account's financial statements should be read in conjunction with the
financial statements of the Funds. The Account commenced operations on
September 30, 1991.
The Account was established by American Franklin to support the operations
of American Franklin's EquiBuilder II-TM- Flexible Premium Variable Life
Insurance Policies (EquiBuilder II Policies). The Account also supports the
operations of American Franklin's EquiBuilder III-TM- Flexible Premium
Variable Life Insurance Policies (EquiBuilder III Policies) (the
EquiBuilder II Policies and the EquiBuilder III Policies are referred to
collectively as the Policies).
Franklin Financial Services Corporation, a wholly-owned subsidiary of The
Franklin Life Insurance Company, acts as the principal underwriter, as
defined in the Investment Company Act of 1940, of the Policies. The assets
of the Account are the property of American Franklin. The portion of the
Account's assets applicable to the Policies is not chargeable with
liabilities arising out of any other business American Franklin may
conduct.
The net assets of the Account may not be less than the reserves applicable
to the Policies. Assets may also be set aside in American Franklin's
General Account based on the amounts allocated under the Policies to
American Franklin's Guaranteed Interest Division and for policy loans.
Additional assets are set aside in American Franklin's General Account to
provide for (i) the unearned portion of the monthly charges for mortality
costs and administrative expenses made under the Policies and (ii) other
policy benefits.
2. SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies of the Account are as follows:
Investments in shares of the Funds are carried at fair value. Investments
in shares of the Funds are valued at the net asset values of the respective
Portfolios of the Funds corresponding to the investment divisions of the
Account. Investment transactions are recorded on the trade date.
Dividends are recorded as received. Realized gains and losses on sales of
the Funds' shares are determined based on the specific identification
method.
The operations of the Account are included in the federal income tax return
of American Franklin. Under the provisions of the Policies, American
Franklin has the right to charge the Account for federal income tax
attributable to the Account. No charge is currently being made against the
Account for such tax since, under current tax law, American Franklin pays
no tax on investment income and capital gains reflected in variable life
insurance policy reserves. However, American Franklin retains the right to
charge for any federal income tax incurred which is attributable to the
Account if the law is changed. Charges for state and local taxes, if any,
attributable to the Account may also be made.
7
<PAGE>
THE AMERICAN FRANKLIN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VUL-2
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1997
3. SALES AND ADMINISTRATIVE CHARGES
Certain jurisdictions require that deductions be made from premium payments
for taxes. The amount of such deductions varies and may be up to 5% of the
premium. With respect to the EquiBuilder III Policies, American Franklin
makes a sales expense deduction equal to 5% of each premium paid during any
policy year up to a target premium, which is based on the annual premium
for a fixed whole life insurance policy on the life of the insured person
(no sales expense deduction is made for premiums in excess of the target
premium paid during that policy year). The balance remaining after any
such deduction, the net premium, is placed by American Franklin in a Policy
Account established for each policyowner. Each month American Franklin
makes a charge against each Policy Account for: administrative expenses
(currently $6 per month plus an additional charge of $24 per month for each
of the first 12 months a policy is in effect); cost of insurance, which is
based on the insured person's age, sex, risk class, amount of insurance,
and additional benefits, if any. In addition, American Franklin will make
charges for the following: a partial withdrawal of net cash surrender
value (currently $25 or 2% of the amount withdrawn, whichever is less); an
increase in the face amount of insurance (currently a $1.50 administrative
charge for each $1,000 increase up to a maximum charge of $300); and a
transfer between investment divisions in any policy year in which four
transfers have already been made (up to $25 for each additional transfer in
a given policy year). Charges may also be made for providing more than one
illustration of policy benefits to a given policyholder. American Franklin
assumes mortality and expense risks related to the operations of the
Account and deducts a charge from the assets of the Account at an effective
annual rate of .75% of the Account's net assets to cover these risks. The
total charges paid by the Account to American Franklin were $8,558,000 for
the six months ended June 30, 1997.
During the first ten years a Policy is in effect, a surrender charge may be
deducted from a Policy Account by American Franklin if: the Policy is
surrendered for its net cash surrender value, the face amount of the Policy
is reduced or the Policy is permitted to lapse. The maximum total
surrender charge applicable to a particular Policy is specified in the
Policy and is equal to 50% of one target premium. This maximum will not
vary based on the amount of premiums paid or when they are paid. At the
end of the sixth policy year and at the end of each of the four succeeding
policy years, the maximum surrender charge is reduced by an amount equal to
20% of the initial maximum surrender charge until, after the end of the
tenth policy year, there is no surrender charge. Subject to the maximum
surrender charge, the surrender charge with respect to the EquiBuilder II
Policies will equal 30% of actual premiums paid during the first policy
year up to one target premium, plus 9% of all other premiums actually paid
during the first ten policy years, and the surrender charge with respect to
the EquiBuilder III Policies will equal 25% of actual premiums paid during
the first policy year up to one target premium, plus 9% of all other
premiums actually paid during the first ten policy years.
8
<PAGE>
THE AMERICAN FRANKLIN LIFE INSURANCE COMPANY
SEPARATE ACCOUNT VUL-2
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1997
4. SUMMARY OF UNIT VALUES AND CHANGES IN OUTSTANDING UNITS
Unit value information and a summary of changes in outstanding units is
shown below:
FOR THE SIX MONTHS ENDED JUNE 30, 1997
<TABLE>
<CAPTION>
MONEY EQUITY- HIGH
MARKET INCOME GROWTH OVERSEAS INCOME
DIVISION DIVISION DIVISION DIVISION DIVISION
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period $120.68 $236.34 $223.47 $152.96 $141.63
----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------
Unit value, end of period $123.44 $271.45 $250.84 $179.75 $152.45
----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------
Number of units outstanding,
beginning of period 26,149 100,813 154,236 44,082 8,676
Net contract purchase payments 59,444 23,501 32,321 8,238 3,010
Transfers for policy related
transactions (6,756) (10,994) (15,137) (4,419) (1,264)
Transfers between Separate Account
VUL-2's Divisions, Net (52,287) 5,926 5,170 528 1,512
----------------------------------------------------------------------------------------
Number of units outstanding,
end of period 26,550 119,246 176,590 48,429 11,934
----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
INVESTMENT ASSET
GRADE ASSET INDEX MANAGER: CONTRA-
BOND MANAGER 500 GROWTH FUND
DIVISION DIVISION DIVISION DIVISION DIVISION
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period $ 135.81 $ 171.77 $ 178.33 $ 137.89 $ 145.66
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Unit value, end of period $ 138.77 $ 188.07 $ 209.74 $ 154.45 $ 160.63
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Number of units outstanding,
beginning of period 12,468 119,978 36,130 9,413 34,121
Net contract purchase payments 1,846 17,569 15,383 5,365 17,951
Transfers for policy related
transactions (1,213) (10,490) (4,819) (1,818) (5,121)
Transfers between Separate Account
VUL-2's Divisions, Net 12 (1,035) 10,490 3,221 8,396
-----------------------------------------------------------------------------------------
Number of units outstanding,
end of period 13,113 126,022 57,184 16,181 55,347
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
</TABLE>
5. REMUNERATION OF MANAGEMENT
The Account incurs no liability for remuneration to directors, members of
advisory boards, officers or any other person who might provide a service
for the Account, except as described in Note 3.
9
