AUL American Individual Unit
Trust
Semi-Annual Report
June 30, 1996<PAGE>
asxc<PAGE>
This report may be used as sales literature only when accompanied or preceded by
effective prospectuses of AUL American Series Fund, Inc. and AUL American
Individual Unit Trust, which relate sales expense 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 Individual Unit Trust
U.S. economic growth was stronger than expected during the first half of 1996.
We experienced an increase in new home sales, strong employment gains, falling
commodity prices, and continued moderate inflation.
Investment markets reacted in a mixed fashion to these events. Bond investors,
concerned that higher growth would ultimately create inflationary pressures,
pushed ten year bond yields up over 100 basis points. Higher interest rates
translated into declining bond prices and negative returns for portfolios
invested primarily in intermediate and longer maturity bonds.
The stock market, on the other hand, started off the year on a strong note,
continuing the remarkable advance which began during 1995. However, during
February, indications of faster than expected economic growth became unsettling
to equity investors who were undecided whether this increased growth would be
positive or negative for stocks. A strengthening economy suggests sustainable
profit growth. Yet higher interest rates could choke off business expansion,
thereby hindering future profits. As a result, the stock market remained in a
volatile trading range, as investors rotated rapidly from one investment theme
to another.
As we begin the second half of 1996, we are experiencing continued evidence of
economic strength. All eyes are focused on the Federal Reserve Board to see if
it feels compelled to move into a more restrictive policy stance to prevent
inflationary pressures. During July, Federal Reserve Chairman Alan Greenspan
announced that he expects the economy to moderate in the months ahead without
any intervention from the Federal Reserve. Moderating economic growth would
be positive for bond investors. Without inflationary fears, interest rates could
decline, causing bonds to appreciate.
In this extended bull market, equity investors are preoccupied with second
quarter earnings announcements and the possibility of higher interest rates,
causing extreme trading volatility from day to day. Stocks should continue to
benefit from the favorable supply/demand situation and the fact that the June
through December period is typically strong for stocks during Presidential
election years.
However, with earnings momentum slowing and the direction of interest rates
still uncertain, equity investing should remain challenging during the remainder
of 1996.
James W. Murphy
Chairman of the Board of Directors and President
Indianapolis, Indiana
July 15, 1996<PAGE>
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AUL American Individual Unit Trust
statement of net assets
June 30, 1996
(unaudited)
Series Fund Fidelity
EquityMoney Market Bond Managed Tactical Asset High Income
Assets:
Investment at market
value $ 2,479,668 $ 2,008,841 $ 1,560,411 $
1,967,711 $ 678,151 $ 1,515,552
Net Assets $ 2,479,668 $ 2,008,841 $ 1,560,411 $ 1,967,711 $
678,151 $ 1,515,552
Units outstanding 389,410 1,891,921 272,795
321,568 123,111 239,207
Net Asset Value per unit $ 6.37 $ 1.06 $ 5.72
$ 6.12 $ 5.51 $ 6.34
The accompanying notes are an integral part of the financial statements.<PAGE>
AUL American Individual Unit Trust
statement of net assets (continued)
June 30, 1996
(unaudited)
Fidelity
Growth Overseas Asset Manager Index 500 Equity-Income
Contrafund
Assets:
Investment at market
value $ 5,809,495 $ 815,951 $ 3,630,021
$ 3,524,280 $ 4,058,859 $ 3,504,755
Net Assets $ 5,809,495 $ 815,951 $ 3,630,021 $ 3,524,280
$ 4,058,859 $ 3,504,755
Units outstanding 785,288 143,534 612,031
473,419 645,773 540,178
Net Asset Value per unit $ 7.40 $ 5.68 $ 5.93
$ 7.44 $ 6.29 $ 6.49
The accompanying notes are an integral part of the financial statements.<PAGE>
AUL American Individual Unit Trust
statement of net assets (continued)
June 30, 1996
(unaudited)
TCI Alger Calvert T. Rowe Price
American Capital
GrowthInternational Growth Accumulation Equity Income
Assets:
Investment at market
value $ 1,822,708 $ 635,856 $ 5,507,765
$ 689,291 $ 4,227,475
Net Assets $ 1,822,708 $ 635,856 $ 5,507,765 $ 689,291
$ 4,227,475
Units outstanding 278,919 111,158 866,997 102,729
657,247
Net Asset Value per unit $ 6.53 $ 5.72 $ 6.35
$ 6.71 $ 6.43
The accompanying notes are an integral part of the financial statements.<PAGE>
AUL American Individual Unit Trust
statement of operations and changes in net assets
for the six months ended June 30, 1996 and 1995
(unaudited)
Series Fund
Equity Money Market Bond
1996 1995 1996 1995 1996 1995
Operations:
Dividend income $ 17,825 $ 4,559 $ 60,671
$ 11,329 $ 35,277 $ 2,535
Mortality & expense
charges 10,471 2,166 15,973 2,648
5,424 295
Net Investment Income
(Expense) 7,354 2,393 44,698
8,681 29,853 2,240
Gain on Investments:
Net realized gain (loss) 17,116 (1,178)
(425) 157
Net unrealized gain (loss) 88,147 39,881
(43,425) 2,138
Net Gain (Loss) 105,263 38,703
(43,850) 2,295
Increase (Decrease) 112,617 41,096 44,698
8,681 (13,997) 4,535
Contract Owner Transactions:
Proceeds from units sold 1,388,943 441,012
18,973,908 4,223,402 1,151,097 132,062
Cost of units redeemed (25,152) (463)
(18,661,591) (4,270,944) (58,994) (131)
Increase (Decrease) 1,363,791 440,549 312,317
(47,542) 1,092,103 131,931
Net increase (decrease) 1,476,408 481,645 357,015
(38,861) 1,078,106 136,466
Net Assets, beginning 1,003,260 79,966 1,651,826
628,969 482,305 602
Net Assets, ending $ 2,479,668 $ 561,611 $ 2,008,841
$ 590,108 $ 1,560,411 $ 137,068
Units sold 223,728 100,665 18,050,423 5,130,641
201,251 25,710
Units redeemed (4,056) (15,042) (17,741,132) (5,180,566)
(10,370) (1,237)
Net increase (decrease) 219,672 85,623 309,291 (49,925)
190,881 24,473
Units outstanding, beginning 169,738 15,959 1,582,630
626,535 81,914 119
Units outstanding, ending 389,410 101,582 1,891,921
576,610 272,795 24,592
The accompanying notes are an integral part of the financial statements.<PAGE>
AUL American Individual Unit Trust
statement of operations and changes in net assets (continued)
for the six months ended June 30, 1996 and 1995
(unaudited)
Series Fund Fidelity
ManagedTactical Asset(1) High Income
1996 1995 1996 1996 1995
Operations:
Dividend income $ 26,188 $ 4,507 $ 5,799
$ 69,243 $ 7,711
Mortality & expense
charges 7,710 1,033 2,060
6,801 1,251
Net Investment Income
(Expense) 18,478 3,474 3,739
62,442 6,460
Gain on Investments:
Net realized gain (loss) 9,924 2,741
1,254 14,606 (2,511)
Net unrealized gain (loss) 12,445 12,561
(3,047) (11,406) 16,454
Net Gain (Loss) 22,369 15,302 (1,793)
3,200 13,943
Increase (Decrease) 40,847 18,776 1,946
65,642 20,403
Contract Owner Transactions:
Proceeds from units sold 1,283,734 257,710
591,496 821,015 305,847
Cost of units redeemed (62,196) (447)
(10,798) (109,410) (219)
Increase (Decrease) 1,221,538 257,263 580,698
711,605 305,628
Net increase (decrease) 1,262,385 276,039 582,644
777,247 326,031
Net Assets, beginning 705,326 3,345 95,507
738,305 61,006
Net Assets, ending $ 1,967,711 $ 279,384 $ 678,151
$ 1,515,552 $ 387,037
Units sold 212,888 49,534 108,402
132,653 57,514
Units redeemed (10,412) (85) (3,321)
(17,702) (40)
Net increase (decrease) 202,476 49,449 105,081
114,951 57,474
Units outstanding, beginning 119,092 665 18,030
124,256 12,229
Units outstanding, ending 321,568 50,114 123,111
239,207 69,703
(1) Tactical Asset Portfolio inception date was July 31, 1995. Only the period
ending June 30, 1996, is presented.
The accompanying notes are an integral part of the financial statements.<PAGE>
AUL American Individual Unit Trust
statement of operations and changes in net assets (continued)
for the six months ended June 30, 1996 and 1995
(unaudited)
Fidelity
Growth Overseas Asset Manager
1996 1995 1996 1995 1996 1995
Operations:
Dividend income $ 206,470 $ 1,308 $ 9,445
$ 919 $ 98,944 $ 8,652
Mortality & expense
charges 25,226 3,243 3,504 1,191
13,771 3,931
Net Investment Income
(Expense) 181,244 (1,935) 5,941
(272) 85,173 4,721
Gain on Investments:
Net realized gain (loss) 70,745 9,023
5,671 558 15,368 4,981
Net unrealized gain (loss) 102,067 130,900
23,874 14,045 10,364 30,463
Net Gain (Loss) 172,812 139,923 29,545
14,603 25,732 35,444
Increase (Decrease) 354,056 137,988 35,486
14,331 110,905 40,165
Contract Owner Transactions:
Proceeds from units sold 3,074,130 902,635
449,324 285,299 2,201,566 779,394
Cost of units redeemed (191,733) (2,005)
(23,810) (554) (71,935) (266)
Increase (Decrease) 2,882,397 900,630 425,514
284,745 2,129,631 779,128
Net increase (decrease) 3,236,453 1,038,618 461,000
299,076 2,240,536 819,293
Net Assets, beginning 2,573,042 87,003 354,951
15,914 1,389,485 71,696
Net Assets, ending $ 5,809,495 $ 1,125,621 $ 815,951
$ 314,990 $ 3,630,021 $ 890,989
Units sold 429,289 165,015 81,144 58,790
378,021 158,301
Units redeemed (26,749) (346) (4,285) (107)
(12,322) (54)
Net increase (decrease) 402,540 164,669 76,859
58,683 365,699 158,247
Units outstanding, beginning 382,748 17,304 66,675 3,238
246,332 14,682
Units outstanding, ending 785,288 181,973 143,534
61,921 612,031 172,929
The accompanying notes are an integral part of the financial statements<PAGE>
AUL American Individual Unit Trust
statement of operations and changes net IN assets
for the six months ended June 30, 1996 and 1995
(unaudited)
Fidelity
Index 500 Equity-Income Contrafund
1996 1995 1996 1995(2) 1996 1995(2)
Operations:
Dividend income $ 45,109 $ 852 $ 59,196
$ 514 $ 10,399 $
Mortality & expense
charges 12,174 621 14,350 104
12,636 (185)
Net Investment Income
(Expense) 32,935 231 44,846
410 (2,237) (185)
Gain on Investments:
Net realized gain (loss) 46,691 281
15,142 2 12,768
Net unrealized gain (loss) 80,480 15,818
15,168 764 131,613 7,545
Net Gain (Loss) 127,171 16,099 30,310
766 144,381 7,545
Increase (Decrease) 160,106 16,330 75,156
1,176 142,144 7,360
Contract Owner Transactions:
Proceeds from units sold 2,640,017 237,923
3,109,457 125,343 2,660,036 124,154
Cost of units redeemed (162,703) (248)
(95,109) (32,020)
Increase (Decrease) 2,477,314 237,675 3,014,348
125,343 2,628,016 124,154
Net increase (decrease) 2,637,420 254,005 3,089,504
126,519 2,770,160 131,514
Net Assets, beginning 886,860 101 969,355
734,595
Net Assets, ending $ 3,524,280 $ 254,106 $ 4,058,859
$ 126,519 $ 3,504,755 $ 131,514
Units sold 365,704 42,455 498,700 24,268
423,350 24,207
Units redeemed (22,675) (42) (15,179)
(4,997)
Net increase (decrease) 343,029 42,413 483,521
24,268 418,353 24,207
Units outstanding, beginning 130,390 20 162,252
121,825
Units outstanding, ending 473,419 42,433 645,773
24,268 540,178 24,207
(2) for the period from April 28, 1995 through June 30, 1995
The accompanying notes are an integral part of the financial statements.<PAGE>
AUL American Individual Unit Trust
statement of operations and changes in net assets (continued)
for the six months ended June 30, 1996 and 1995
(unaudited)
TCI Alger
Growth International American Growth
1996 1995 1996 1995 1996 1995(2)
Operations:
Dividend income $ 138,503 $ 35 $ 13,386 $
$ 131,042 $ 1
Mortality & expense
charges 7,913 (1,233) 3,184 759
19,767 100
Net Investment Income
(Expense) 130,590 (1,198) 10,202
(759) 111,275 (99)
Gain on Investments:
Net realized gain (loss) 12,415 4,385
4,630 (1,098) 28,586 (1)
Net unrealized gain (loss) (141,841) 40,515
19,648 27,687 (38,683) 3,472
Net Gain (Loss) (129,426) 44,900 24,278
26,589 (10,097) 3,471
Increase (Decrease) 1,164 43,702 34,480
25,830 101,178 3,372
Contract Owner Transactions:
Proceeds from units sold 1,026,365 425,621 225,342
258,984 4,381,204 151,308
Cost of units redeemed (36,796) (209) (22,299)
(268) (224,714)
Increase (Decrease) 989,569 425,412 203,043
258,716 4,156,490 151,308
Net increase (decrease) 990,733 469,114 237,523
284,546 4,257,668 154,680
Net Assets, beginning 831,975 14,075 398,333 4,024
1,250,097
Net Assets, ending $ 1,822,708 $ 483,189 $ 635,856
$ 288,570 $ 5,507,765 $ 154,680
Units sold 156,177 78,464 40,944 56,899
695,333 27,896
Units redeemed (5,529) (38) (4,047) (56)
(36,572)
Net increase (decrease) 150,648 78,426 36,897
56,843 658,761 27,896
Units outstanding, beginning 128,270 2,810 74,261 831
208,236
Units outstanding, ending 278,918 81,236 111,158
57,674 866,997 27,896
(2) for the period from April 28, 1995 through June 30, 1995
The accompanying notes are an integral part of the financial statements.<PAGE>
AUL American Individual Unit Trust
statement of operations and changes net IN assets
for the six months ended June 30, 1996 and 1995
(unaudited)
Calvert T. Rowe Price
Capital AccumulationEquity-Income
1996 1995(2) 1996 1995(2)
Operations:
Dividend income $ $ $ 46,587 $ 1,572
Mortality & expense
charges 2,092 41 14,676 187
Net Investment Income
(Expense) (2,092) (41) 31,911
1,385
Gain on Investments:
Net realized gain (loss) 5,514
24,370 9
Net unrealized gain (loss) 18,246 2,439
73,488 778
Net Gain (Loss) 23,760 2,439 97,858
787
Increase (Decrease) 21,668 2,398 129,769
2,172
Contract Owner Transactions:
Proceeds from units sold 528,803 30,928
3,164,822 167,743
Cost of units redeemed (10,813)
(47,916)
Increase (Decrease) 517,990 30,928 3,116,906
167,743
Net increase (decrease) 539,658 33,326 3,246,675
169,915
Net Assets, beginning 149,633 980,800
Net Assets, ending $ 689,291 $ 33,326 $ 4,227,475
$ 169,915
Units sold 80,175 5,949 501,765 32,652
Units redeemed (1,537) (7,561)
Net increase (decrease) 78,638 5,949 494,204
32,652
Units outstanding, beginning 24,091 163,043
Units outstanding, ending 102,729 5,949 657,247
32,652
(2) for the period from April 28, 1995 through June 30, 1995
The accompanying notes are an integral part of the financial statements.<PAGE>
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notes to financial statements
1.Summary of Significant Accounting Policies
The AUL American Individual Unit Trust (Variable Account) was established
by American United Life Insurance Company (AUL) on April 14, 1994, 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 for individual annuity contracts issued by
AUL and invests exclusively in shares of mutual fund portfolios offered by the
AUL American Series Fund, Inc. (Series Fund), Fidelity Investments Variable
Insurance Products Fund and Variable Insurance Products Fund II(Fidelity),
Twentieth Century (TCI), Alger American Fund (Alger), Calvert Group
(Calvert), and T. Rowe Price.
Security Valuation Transactions and Related Income
The market value of investments is based on the closing bid prices at June 28,
1996. Investment transactions are accounted for on the trade date and dividend
income is recorded on the ex-dividend date.
Mortality and Expense Risks Charges
AUL deducts a daily charge as compensation for the mortality and expense risks
assumed by AUL. The charge is equal on an annual basis to 1.25% of the average
daily net assets of each investment account. AUL guarantees that the mortality
and expense charge shall not increase. The charges incurred during the six
months ended June 30, 1996 and 1995 were $177,732 and $18,988, 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 at the date of the
financial statements and the reported amounts of revenues and expenses 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 contract equal to the
lesser of 2% of the contract value or $30. The fee is assessed every year on the
contract anniversary date during the accumulation period but is waived if the
contract value exceeds $50,000 on the contract anniversary date. The charges
incurred during the six months ended June 30, 1996 and 1995 were $8,395 and
$0, respectively.
AUL may assess a withdrawal charge on withdrawals that exceed 12% of the
contract value at the time of the first withdrawal in a contract year. The
amount of the charge depends upon the type of contract and the length of time
the contract has existed, as follows:
Flexible Premium Contract One Year Flexible Premium
Contract
Contract Year Withdrawal Charge Contract YearWithdrawal Charge
1 10% 1 7%
2 9% 2 6%
3 8% 3 5%
4 7% 4 4%
5 6% 5 3%
6 5% 6 2%
7 4% 7 1%
8 3% 8 0%
9 2%
10 1%
11 0%
The aggregrate withdrawal charges will not exceed 8.5% of the total premiums
paid on a Flexible Premium Contract or 8% of the total premiums paid on a One
Year Flexible Premium Contract.<PAGE>
notes to financial statements (continued)
3.Net Asset Value per Unit
The change in the Net Asset Value per unit for the six months ended June 30,
1996, is:
6/30/96 12/31/95 Change
Series Fund:
Equity $ 6.367652 $ 5.910622 7.7%
Money Market 1.061559 1.044437 1.6%
Bond 5.719751 5.887919 2.9%
Managed 6.118787 5.922513 3.3%
Tactical Asset 5.508226 5.297110 4.0%
Fidelity:
High Income 6.335371 5.941506 6.6%
Growth 7.397454 6.722540 10.0%
Overseas 5.684412 5.323589 6.8%
Asset Manager 5.930815 5.640705 5.1%
Index 500 7.444047 6.801594 9.4%
Equity Income 6.285174 5.974362 5.2%
Contrafund 6.487909 6.029929 7.6%
TCI:
Growth 6.534767 6.486115 0.8%
International 5.719884 5.363939 6.6%
Alger:
American Growth 6.352593 6.003257 5.8%
Calvert:
Capital Accumulation 6.708988 6.211190 8.0%
T. Rowe Price:
Equity Income 6.433740 6.015571 7.0%
4. Cost of Investments
Series Fund:
Equity $ 2,324,814
Money Market 2,008,841
Bond 1,594,133
Managed 1,934,191
Tactical Asset 681,531
Fidelity:
High Income 1,472,350
Growth 5,509,555
Overseas 767,191
Asset Manager 3,492,575
Index 500 3,364,709
Equity-Income 3,987,058
Contrafund 3,349,025
TCI:
Growth 1,880,383
International 582,191
Alger:
American Growth 5,537,508
Calvert:
Capital Accumulation 671,312
T. Rowe Price:
Equity Income 4,085,709<PAGE>
notes to financial statements (continued)
5. Net Assets
Series Fund
EquityMoney Market Bond Managed Tactical Asset
Proceeds from units sold $ 2,337,235 $ 33,794,513 $ 1,653,609 $
1,970,370 $ 687,430
Cost of units redeemed (60,923) (31,857,746) (104,550)
(91,728) (12,690)
Net investment income 27,989 72,074 42,473
39,975 5,009
Net realized gain 20,513 2,601
15,574 1,782
Unrealized gain (loss)
on investments 154,854 (33,722)
33,520 (3,380)
$ 2,479,668 $ 2,008,841 $
1,560,411 $ 1,967,711 $ 678,151
Fidelity
High Income Growth Overseas Asset Manager
Index 500
Proceeds from units sold $ 1,588,865 $ 5,652,336 $ 910,639 $
3,713,795 $ 3,474,098
Cost of units redeemed (195,180) (411,747) (159,489)
(333,887) (191,498)
Net investment income 65,321 167,903 3,639
83,094 29,864
Net realized gain 13,344 101,063 12,402
29,573 52,245
Unrealized gain (loss)
on investments 43,202 299,940 48,760
137,446 159,571
$ 1,515,552 $ 5,809,495 $ 815,951 $ 3,630,021
$ 3,524,280
Fidelity TCI Alger
American
Equity-Income Contrafund Growth International Growth
Proceeds from units sold $ 4,045,036 $ 3,368,275 $ 1,839,378 $
624,620 $ 5,642,094
Cost of units redeemed (125,615) (37,064) (105,095)
(58,525) (245,914)
Net investment income 49,114 3,978 125,127 7,241
107,533
Net realized gain 18,523 13,836 20,973 8,855
33,795
Unrealized gain (loss)
on investments 71,801 155,730 (57,675)
53,665 (29,743)
$ 4,058,859 $ 3,504,755 $ 1,822,708 $ 635,856 $
5,507,765
Calvert T. Rowe Price
Capital
Accumulation Equity Income
Proceeds from units sold $ 671,699 $ 4,096,325
Cost of units redeemed (11,252) (82,967)
Net investment income 5,161 43,259
Net realized gain 5,704 29,092
Unrealized gain (loss)
on investments 17,979 141,766
$ 689,291 $ 4,227,475
<PAGE>
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American United Life Insurance Company
P.O. Box 368
Indianapolis, Indiana 46206-0368
3-13971
