AUL American Individual Unit Trust
Annual Report
December 31, 1995<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
<PAGE>
Last year was a spectacular year for the equity and bond markets.
Domestic stocks were driven by modest economic
growth, low inflation, declining interest rates and profit expansion.
Meanwhile, baby boomers helped contribute to the
market surge by investing in retirement products. Near the end of
1995, the stock market cheered as the Federal Reserve
lowered short-term interest rates, thereby providing an extra boost
to the economy during 1996.
Although 1995 was an impressive year for equities, the stock
market became highly rotational as investors shifted rapidly
from one sector to another during the year. This meant that if an
investor did not keep rotating from sector to sector with
perfect timing, his or her performance would have lagged the
overall market.
The bond market also enjoyed a solid performance in 1995
following one of the worst years ever in 1994. Yields declined
dramatically at every point on the yield curve resulting in double
digit returns for most bond funds. Aggressive buying by
bond investors in 1995 was fueled by prospects for a reduction in
the federal deficit, signs of economic weakness,
moderate inflation, and the likelihood of more easing by the Federal
Reserve.
Now in the fifth year of an economic expansion, economists are
projecting this trend will continue into 1996. The Federal
Reserve has been successful at keeping inflationary pressures in
check during this prolonged expansion. Interest rates
could decline during 1996, but the move will be much smaller than
in 1995. Corporate profits should continue to expand,
but the rate of earnings growth is expected to decline.
After experiencing such a phenomenal year in 1995, equity
investors have become complacent with above average returns.
However, it is not likely that 1996 will be a repeat of 1995's banner
year. Achieving double digit bond performance may
also be difficult given today's much lower level of interest rates. Yet
bonds could still perform well if this low inflation,
low growth, low interest rate scenario persists throughout 1996.<PAGE>
James W. Murphy
Chairman of the Board of Directors and President<PAGE>
Indianapolis, Indiana
January 19, 1996<PAGE>
(This page is intentionally blank.)<PAGE>
Report of Independent Accountants
The Contract Owners and
Board of Directors
American United Life Insurance Company
We have audited the accompanying statement of net assets of AUL
American Individual Unit Trust as of December 31,
1995, and the related statements of operations and changes in net
assets for
the year ended December 31, 1995 and for the period from
November 21, 1994 through
December 31, 1994. These financial statements are the
responsibility of the Trust's management. Our responsibility is to
express an opinion on these financial statements based on our
audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material
misstatement. Our procedures included confirmation of securities
owned as of December 31, 1995, by correspondence
with the custodian. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of
AUL American Individual Unit Trust as of December 31, 1995, and
the results of its operations and changes in net assets
for the year ended December 31, 1995 and for the period from
November 21, 1994 through December 31, 1994, in
conformity with generally accepted accounting principles.
Indianapolis, Indiana
January 27, 1996<PAGE>
AUL American Individual Unit Trust
statement of net assets
December 31, 1995<PAGE>
Series Fund Fidelity
EquityMoney Market Bond Managed Tactical
Asset High Income
Assets:
Investment at market
value $ 1,003,260 $ 1,651,825 $ 482,305
$ 705,326 $ 95,507 $ 738,305
Net Assets $ 1,003,260 $ 1,651,825 $ 482,305 $
705,326 $ 95,507 $ 738,305
Units outstanding 169,738 1,582,630 81,914
119,092 18,030 124,256
Net Asset Value per unit $ 5.91 $ 1.04 $ 5.89
$ 5.92 $ 5.30 $ 5.94
<PAGE>
The accompanying notes are an integral part of the financial
statements.<PAGE>
AUL American Individual Unit Trust
statement of net assets (continued)
December 31, 1995
<PAGE>
Fidelity
Growth Overseas Asset Manager Index 500
Equity-Income Contrafund
Assets:
Investment at market
value $ 2,573,042 $ 354,951 $ 1,389,485
$ 886,860 $ 969,355 $ 734,595
Net Assets $ 2,573,042 $ 354,951 $ 1,389,485 $
886,860 $ 969,355 $ 734,595
Units outstanding 382,748 66,675 246,332
130,390 162,252 121,825
Net Asset Value per unit $ 6.72 $ 5.32 $ 5.64 $
6.80 $ 5.97 $ 6.03
<PAGE>
The accompanying notes are an integral part of the financial
statements.<PAGE>
AUL American Individual Unit Trust
statement of net assets (continued)
December 31, 1995<PAGE>
TCI Alger Calvert T. Rowe Price
American Capital
GrowthInternational Growth Accumulation Equity
Income
Assets:
Investment at market
value $ 831,975 $ 398,333 $ 1,250,097
$ 149,633 $ 980,800
Net Assets $ 831,975 $ 398,333 $ 1,250,097 $
149,633 $ 980,800
Units outstanding 128,270 74,261 208,236
24,091 163,043
Net Asset Value per unit $ 6.49 $ 5.36 $ 6.00
$ 6.21 $ 6.02
<PAGE>
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 year ended December 31, 1995 and period from November
21, 1994 through December 31, 1994<PAGE>
Series Fund
Equity Money Market Bond
1995 1994 1995 1994 1995 1994
Operations:
Dividend income $ 24,156 $ 3,643 $ 35,085 $
1,014 $ 14,930 $ 10
Mortality & expense
charges 7,143 21 8,469 254
2,320
Net Investment Income
(Expense) 17,013 3,622 26,616
760 12,610 10
Gain on Investments:
Net realized gain (loss) 3,397
3,026
Net unrealized gain (loss) 69,299 (2,592)
9,713 (9)
Net Gain (Loss) 72,696 (2,592)
12,739 (9)
Increase 89,709 1,030 26,616 760
25,349 1
Contract Owner Transactions:
Proceeds from units sold 869,356 78,936
13,858,429 962,176 501,910
601
Cost of units redeemed (35,771)
(12,862,189) (333,967) (45,556)
Increase 833,585 78,936 996,240
628,209 456,354 601
Net increase 923,294 79,966 1,022,856 628,969
481,703 602
Net Assets, beginning 79,966 628,969
602
Net Assets, ending $ 1,003,260 $ 79,966 $ 1,651,825
$ 628,969 $ 482,305 $ 602
Units sold 174,411 15,959 13,487,828 959,389
91,041 119
Units redeemed (20,632) (12,531,733) (332,854)
(9,246)
Net increase 153,779 15,959 956,095 626,535
81,796 119
Units outstanding, beginning 15,959 626,535
119
Units outstanding, ending 169,738 15,959 1,582,630
626,535 81,914 119
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 year ended December 31, 1995 and period from November
21, 1994 through December 31, 1994<PAGE>
Series Fund Fidelity
Managed Tactical Asset High Income
1995 1994 1995(1) 1995 1994
Operations:
Dividend income
$ 25,580 $ 81 $ 1,374
$ 7,711 $
mortality & expense
charges 4,163 104
4,816 15
Net Investment Income
(Expense) 21,417 81 1,270
2,895 (15)
Gain on Investments:
Net realized gain (loss) 5,649
528 (1,263)
Net unrealized gain (loss) 21,145 (70)
(333) 54,330 278
Net Gain (Loss) 26,794 (70) 195
53,067 278
Increase 48,211 11 1,465
55,962 263
Contract Owner Transactions:
Proceeds from units sold 683,302 3,334
95,934 707,107
60,743
Cost of units redeemed (29,532)
(1,892) (85,770)
Increase 653,770 3,334 94,042
621,337 60,743
Net increase 701,981 3,345 95,507
677,299 61,006
Net Assets, beginning 3,345
61,006
Net Assets, ending $ 705,326 $ 3,345 $ 95,507
$ 738,305 $ 61,006
Units sold 123,620 665 18,390
128,372 12,229
Units redeemed (5,193) (360)
(16,345)
Net increase 118,427 665 18,030
112,027 12,229
Units outstanding, beginning665
12,229
Units outstanding, ending 119,092 665 18,030
124,256 12,229
(1) for the period from July 31, 1995 through December 31, 1995
<PAGE>
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 year ended December 31, 1995 and period from November
21, 1994 through December 31, 1994<PAGE>
Fidelity Growth Overseas Asset Manager
1995 1994 1995 1994 1995 1994
Operations:
Dividend income $ 1,308 $ $ 920 $
$ 8,652 $
Mortality & expense
charges 14,630 18 3,218 4
10,713 16
Net Investment Income
(Expense) (13,322) (18) (2,298)
(4) (2,061) (16)
Gain on Investments:
Net realized gain (loss) 30,318
6,731 14,205
Net unrealized gain (loss) 196,926 946
24,775 111 127,044
37
Net Gain (loss) 227,244 946 31,506
111 141,249 37
Increase 213,922 928 29,208 107
139,188 21
Contract Owner Transactions:
Proceeds from units sold 2,492,131 86,075
445,508 15,807 1,440,553
71,675
Cost of units redeemed (220,014)
(135,679) (261,952)
Increase 2,272,117 86,075 309,829
15,807 1,178,601 71,675
Net increase 2,486,039 87,003 339,037 15,914
1,317,789 71,696
Net Assets, beginning 87,003 15,914
71,696
Net Assets, ending $ 2,573,042 $ 87,003 $ 354,951 $
15,914 $ 1,389,485 $ 71,696
Units sold 404,210 17,304 90,444 3,238
286,115 14,682
Units redeemed (38,766) (27,007)
(54,465)
Net increase 365,444 17,304 63,437 3,238
231,650 14,682
Units outstanding, beginning 17,304 3,238
14,682
Units outstanding, ending 382,748 17,304 66,675
3,238 246,332 14,682
<PAGE>
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 year ended December 31, 1995 and period from November
21, 1994 through December 31, 1994<PAGE>
Fidelity TCI
Index 500Equity-Income Contrafund Growth
1995 1994 1995(2) 1995(2) 1995 1994
Operations:
Dividend income $ 852 $ $ 7,398 $
8,934 $ 35 $
Mortality & expense
charges 3,923 3,129 2,719
5,495 3
Net Investment Income
(Expense) (3,071) 4,269
6,215 (5,460) (3)
Gain on Investments:
Net realized gain (loss) 5,555
3,381 1,068 8,559
Net unrealized gain (loss) 79,090 1
56,632 24,117 84,124
42
Net Gain (Loss) 84,645 1 60,013
25,185 92,683 42
Increase 81,574 1 64,282 31,400
87,223 39
Contract Owner Transactions:
Proceeds from units sold 833,980 100
935,579 708,239 798,976
14,036
Cost of units redeemed (28,795)
(30,506) (5,044) (68,299)
Increase 805,185 100 905,073
703,195 730,677 14,036
Net increase 886,759 101 969,355 734,595
817,900 14,075
Net Assets, beginning 101
14,075
Net Assets, ending $ 886,860 $ 101 $ 969,355 $
734,595 $ 831,975 $ 14,075
Units sold 134,987 20 167,566 122,672
137,785 2,810
Units redeemed (4,617) (5,314) (847)
(12,325)
Net increase 130,370 20 162,252 121,825
125,460 2,810
Units outstanding, beginning 20
2,810
Units outstanding, ending 130,390 20 162,252
121,825 128,270 2,810
<PAGE>
(2) for the period from April 28, 1995 through December 31, 1995<PAGE>
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 year ended December 31, 1995 and period from November
21, 1994 through December 31, 1994<PAGE>
TCI Alger Calvert T. Rowe Price
American Capital
International Growth Accumulation Equity
Income
1995 1994 1995(2) 1995(2) 1995(2)
Operations:
Dividend income $ $ $ 1 $
7,823 $ 14,875
Mortality & expense
charges 2,961 3,743 570
3,528
Net Investment Income
(Expense) (2,961) (3,742)
7,253 11,347
Gain on Investments:
Net realized gain (loss) 4,225
5,210 190 4,723
Net unrealized gain (loss) 33,996 21
8,939 (267) 68,278
Net Gain (Loss) 38,221 21 14,149
(77) 73,001
Increase 35,260 21 10,407 7,176
84,348
Contract Owner Transactions:
Proceeds from units sold 395,275 4,003 1,260,890
142,896 931,503
Cost of units redeemed (36,226) (21,200)
(439) (35,051)
Increase 359,049 4,003 1,239,690
142,457 896,452
Net increase 394,309 4,024 1,250,097 149,633
980,800
Net Assets, beginning 4,024
Net Assets, ending $ 398,333 $ 4,024 $ 1,250,097 $
149,633 $ 980,800
Units sold 80,369 831 211,706 24,163
169,153
Units redeemed (6,939) (3,470) (72)
(6,110)
Net increase 73,430 831 208,236 24,091
163,043
Units outstanding, beginning 831
Units outstanding, ending 74,261 831 208,236
24,091 163,043
<PAGE>
(2) for the period from April 28, 1995 through December 31, 1995
<PAGE>
The accompanying notes are an integral part of the financial
statements.<PAGE>
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<PAGE>
notes to financial statements
<PAGE>
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 December 29, 1995. 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
year, ended December 31, 1995 and 1994 were $81,649
and $331, 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 years ended December 31, 1995 and 1994
were $729 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.
There were no withdrawal charges assessed during the years
ended December 31, 1995 and 1994.
<PAGE>
notes to financial statements (continued) 3.Net Asset Value per Unit
The change in the Net Asset Value per unit for the year ended
December 31, 1995, or from commencement of
operations, April 28 and July 31, 1995 through December 31,
1995, is:
12/31/95 12/31/94 Change
Series Fund:
Equity $ 5.910622 $ 5.010288 18.0%
Money Market 1.044437 1.003909 4.0%
Bond 5.887919 5.061935 16.3%
Managed 5.922513 5.033906 17.7%
Fidelity:
High Income 5.941806 4.988506 19.1%
Growth 6.722540 5.027935 33.7%
Overseas 5.323589 4.914740 8.3%
Asset Manager 5.640705 4.883362 15.5%
Index 500 6.801594 5.019943 35.5%
TCI:
Growth 6.486115 5.009474 29.5%
International 5.363939 4.840287 10.8%
12/31/95 4/28/95 Change
Fidelity:
Equity Income $ 5.974362 $ 5.000000
19.5%
Contrafund 6.029929 5.000000 21.6%
Alger:
American Growth 6.003257 5.000000 20.1%
Calvert:
Capital Accumulation 6.211190 5.000000
24.2%
T. Rowe Price:
Equity Income 6.015571 5.000000 20.3%
12/31/95 7/31/95 Change
Series Fund:
Tactical Asset $ 5.297110 $ 5.000000
5.9%
<PAGE>
notes to financial statements (continued)<PAGE>
4. Cost of Investments
Series Fund:
Equity $ 936,553
Money Market
1,651,825
Bond 472,601
Managed
84,250
Tactical Asset 95,840
Fidelity:
High Income
683,696
Growth
2,375,169
Overseas
330,066
Asset Manager
1,262,403
Index 500
807,770
Equity-Income
912,722
Contrafund
710,477<PAGE>
TCI:
Growth $
747,809
International 364,315
Alger:
American Growth
1,241,158
Calvert:
Capital Accumulation
149,900
T. Rowe Price:
Equity Income
912,521<PAGE>
5. Net Assets
Series Fund Fidelity
Equity Money Market Bond Managed Tactical
Asset High Income Growth
Proceeds from units sold $ 948,292 $ 14,820,605 $
502,512 $ 686,636 $ 95,934 $ 767,849 $
2,578,206
Cost of units redeemed (35,771) (13,196,155) (45,556)
(29,532) (1,892) (85,770) (220,014)
Net investment income
(expense) 20,635 27,375 12,618
21,498 1,270 2,880 (13,341)
Net realized gain (loss) 3,397 3,027 5,649
528 (1,263) 30,318
Unrealized gain (loss)
on investments 66,707 9,704
21,075 (333) 54,609 197,873
$ 1,003,260 $ 1,651,825 $ 482,305 $
705,326 $ 95,507 $ 738,305 $ 2,573,042
Fidelity
Overseas Asset Manager Index 500Equity-Income
Contrafund
Proceeds from units sold $ 461,315 $ 1,512,228 $
834,081 $ 935,579 $ 708,239
Cost of units redeemed (135,679) (261,952) (28,795)
(30,506) (5,044)
Net investment income
(expense) (2,302) (2,078) (3,072)
4,269 6,215
Net realized gain (loss) 6,731 14,205 5,555
3,381 1,068
Unrealized gain (loss)
on investments 24,886 127,082 79,091
56,632 24,117
$ 354,951 $ 1,389,485 $ 886,860 $ 969,355 $
734,595
TCI Alger Calvert T. Rowe Price
American Capital
GrowthInternational Growth Accumulation Equity
Income
Proceeds from units sold $ 813,013 $ 399,279 $
1,260,890 $ 142,896 $ 931,503
Cost of units redeemed (68,299) (36,226) (21,200)
(439) (35,052)
Net investment income
(expense) (5,464) (2,963) (3,742)
7,253 11,348
Net realized gain (loss) 8,559 4,225 5,210 190
4,723
Unrealized gain (loss)
on investments 84,166 34,018 8,939 (267)
68,278
$ 831,975 $ 398,333 $ 1,250,097 $ 149,633 $
980,800
<PAGE>
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American United Life Insurance Company
P.O. Box 368
Indianapolis, Indiana 46206-0368
