A Message
From
The Chairman of the Board
and President of AUL American Series Fund, Inc.
To Participants in AUL American Individual Unit Trust
The U.S. economy continued to surprise investors with its performance
during 1997. The current seven year The U.S. economy continued to surprise
investors with its performance during 1997. The current seven year expansion has
been unique in that economic growth has remained moderate while inflationary
pressures have been subdued. The inflation rate actually declined during 1997,
allowing the Federal Reserve to hold monetary policy steady during the last nine
months of the year. Other positive economic factors during the year included
lower interest rates, higher productivity and improved corporate profit margins.
Equity investors were richly rewarded during the past year with the Dow
Jones Industrial Average and the S&P 500 (commonly quoted equity indices) both
achieving double digit returns. During 1997, equity investors reacted positively
to the combination of slow growth and moderate inflation. However, the
volatility of returns increased dramatically during the second half of the year
as investors became fearful that corporations would experience a decline in
profit growth during 1998. Severe weakness in Asia and Latin America was another
principal catalyst causing increased volatility.
Bond yields moved higher in the first quarter of 1997 in reaction to the
Federal Reserve Bank's 25 basis point increase in the Federal Funds rate target
but declined over the remainder of the year. Moderate inflation, a declining
federal eficit, and turmoil in the Asian markets caused the Federal Reserve Bank
to withhold any further intervention, despite strong economic growth and low
unemployment. As a result, bond returns, especially for bonds with longer
maturities, were competitive with common stocks in the last six months of 1997
although they still trailed well behind equity returns for the entire year.
At the present time, most economists are expecting economic growth to
decelerate in 1998 as a result of weaker domestic demand and momentum lost from
foreign trade. Slower growth does have some positive aspects. However, equity
investors remain focused on the possibility of weaker corporate profits.
Equity investors have now experienced three years of phenomenal equity
returns, returns which are substantially higher than the long-term averages. The
major stock indices could still post further gains during 1998, but the
opportunity to dramatically outperform the long-term averages becomes extremely
limited. Good bond performance will depend on declining interest rates,
continued moderate inflation and bonds being viewed as an "alternative
investment" for equity investors.
/s/ James W. Murphy
James W. Murphy
Chairman of the Board of Directors and President
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Indianapolis, Indiana
January 20, 1998
Report of Independent Accountants
The Contract Owners of
AUL American Individual Unit Trust and
Board of Directors of
American United Life Insurance Company
We have audited the accompanying statements of net assets of AUL American
Individual Unit Trust as of December 31, 1997, and the related statements of
operations and changes in net assets for each of the two years in the period
then ended. 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. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1997, by correspondence with
the custodians. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. 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, 1997, and the results of its operations and changes in
net assets for each of the two years in the period then ended, in conformity
with generally accepted accounting principles.
/s/Coopers & Lybrand L.L.P.
Indianapolis, Indiana
February 2, 1998
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AUL American Individual Unit Trust
STATEMENTS OF NET ASSETS
December 31, 1997
Series Fund Fidelity
----------------------------------------------------- ----------
Equity Money Mkt Bond Managed Tact Asst High Inc
Assets:
Investments
at value $8,976,235 $5,092,365 $2,366,858 $6,178,542 $3,168,747 $4,486,791
Net Assets $8,976,235 $5,092,365 $2,366,858 $6,178,542 $3,168,747 $4,486,791
Units
outstanding 1,008,287 4,549,404 373,791 791,101 459,162 577,023
Accumulation
Unit Value $ 8.90 $ 1.12 $ 6.33 $ 7.81 $ 6.90 $ 7.78
The accompanying notes are an integral part of the financial statements.
4
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AUL American Individual Unit Trust
STATEMENTS OF NET ASSETS (continued)
December 31, 1997
Fidelity
----------------------------------------------------------------------
Growth Overseas Asset Mnger Index 500 Equity-Inc Contrafund
Assets:
Investments
at value $12,936,642 $1,948,811 $12,030,222 $19,854,895 $10,124,985 $11,602,769
Net
Assets $12,936,642 $1,948,811 $12,030,222 $19,854,895 $10,124,985 $11,602,769
Units
outstanding
1,393,042 297,195 1,581,639 1,836,589 1,186,973 1,310,234
Accumulation
Unit Value $ 9.29 $ 6.56 $ 7.61 $ 10.81 $ 8.53 $ 8.86
The accompanying notes are an integral part of the financial statements.
5
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AUL American Individual Unit Trust
STATEMENTS OF NET ASSETS (continued)
December 31, 1997
American Century Alger Calvert T.RowePrice
------------------------- ----------- ------------ -----------
VP Capital VP American Capital
Appreciation Internatl Growth Accumul Equity Inc.
Assets:
Investments
at value $ 1,830,373 $ 2,635,254 $ 14,588,275 $ 1,860,781 $ 20,117,044
Net Assets $ 1,830,373 $ 2,635,254 $ 14,588,275 $ 1,860,781 $ 20,117,044
Units outstanding 312,676 371,156 1,748,167 231,353 2,226,491
Accumulation Unit
Value $ 5.85 $ 7.10 $ 8.34 $ 8.04 $ 9.04
The accompanying notes are an integral part of the financial statements.
6
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AUL American Individual Unit Trust
STATEMENTS OF NET ASSETS (continued)
December 31, 1997
PBHG
----------------------------
Growth II Tech. & Comm.
Assets:
Investments at value $ 521,632 $ 405,466
Net Assets $ 521,632 $ 405,466
Units outstanding 97,881 78,548
Accumulation Unit Value 5.33 $ 5.16
The accompanying notes are an integral part of the financial statements.
7
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AUL American Individual Unit Trust
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
for the years ended December 31, 1997 and 1996
Series Fund
----------------------------------------------------------------
Equity Money Market Bond
----------------- ----------------------- ----------------------
1997 1996 1997 1996 1997 1996
Operations:
Dividend
income $194,477 $ 45,758 $ 183,949 $ 115,215 $ 155,983 $ 92,504
Mortality
& expense
charges 78,607 29,591 47,237 30,590 26,224 16,617
Net Investment
Income(Loss) 115,870 16,167 136,712 84,625 129,759 75,887
Gain (Loss) on Investments:
Net realized gain
(loss) 285,199 34,024 37,423 (2,048)
Net change in
unrealized gain
(loss) 1,029,868 344,982 (35,542) (18,274)
Net Gain
(Loss) 1,315,067 379,006 1,881 (20,322)
Increase (Decrease)
in Net Assets from
Operations 1,430,937 395,173 136,712 84,625 131,640 55,565
Contract Owner Transactions:
Proceeds from
units sold 4,466,066 2,342,416 11,080,898 21,617,520 2,367,692 1,594,898
Cost of units
redeemed (595,356) (66,261) (8,812,016)(20,667,199)(2,078,457) (186,785)
Increase
(Decrease) 3,870,710 2,276,155 2,268,882 950,321 289,235 1,408,113
Net increase
(decrease) 5,301,647 2,671,328 2,405,594 1,034,946 420,875 1,463,678
Net Assets,
beginning 3,674,588 1,003,260 2,686,771 1,651,825 1,945,983 482,305
Net Assets,
ending 8,976,235 3,674,588 $5,092,365 2,686,771 2,366,858 1,945,983
Units sold 554,508 368,904 10,417,704 20,521,606 381,702 277,366
Units redeemed (74,488) (10,375) (8,356,283)(19,616,253) (335,222) (31,969)
Net increase
(decrease) 480,020 358,529 2,061,421 905,353 46,480 245,397
Units
outstanding,
beginning 528,267 169,738 2,487,983 1,582,630 327,311 81,914
Units
outstanding,
ending 1,008,287 528,267 4,549,404 2,487,983 373,791 327,311
The accompanying notes are an integral part of the financial statements.
8
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AUL American Individual Unit Trust
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (continued)
for the years ended December 31, 1997 and 1996
Series Fund Fidelity
------------------------------------------ -----------------------
Managed Tactical Asset High Income
-------------------- --------------------- -----------------------
1997 1996 1997 1996 1997 1996
Operations:
Dividend
income $ 303,723 $ 81,813 $ 229,808 $ 28,262 $ 176,695 $ 69,242
Mortality
& expense
charges 58,232 25,095 26,793 7,553 37,368 17,670
Net Investment Income
(Loss) 245,491 56,718 203,015 20,709 139,327 51,572
Gain (Loss) on Investments:
Net realized
gain
(loss) 109,208 25,509 48,556 2,694 60,312 26,834
Net change in
unrealized
gain(loss) 432,569 159,770 5,006 64,663 247,977 83,401
Net Gain
(Loss) 541,777 185,279 53,562 67,357 308,289 110,235
Increase (Decrease)
in Net Assets from
Operations 787,268 241,997 256,577 88,066 447,616 161,807
Contract Owner Transactions:
Proceeds from
units
sold 2,588,339 2,460,594 2,070,415 824,922 2,479,819 1,356,038
Cost of units
redeemed (462,750) (142,232) (137,709) (29,031) (518,646) (178,148)
Increase
(Decrease)2,125,589 2,318,362 1,932,706 795,891 1,961,173 1,177,890
Net
increase
(decrease)2,912,857 2,560,359 2,189,283 883,957 2,408,789 1,339,697
Net
Assets,
begin. 3,265,685 705,326 979,464 95,507 2,078,002 738,305
Net
Assets,
ending $ 6,178,542 $ 3,265,685 $ 3,168,747 $ 979,464 $ 4,486,791 $ 2,078,002
Units
sold 355,209 403,449 318,153 150,337 337,319 214,596
Units
redeemed (63,509) (23,140) (20,857) (6,501) (70,840) (28,308)
Net
increase
(decrease) 291,700 380,309 297,296 143,836 266,479 186,288
Units
outstanding,
beginning 499,401 119,092 161,866 18,030 310,544 124,256
Units
outstanding,
ending 791,101 499,401 459,162 161,866 577,023 310,544
The accompanying notes are an integral part of the financial statements.
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AUL American Individual Unit Trust
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (continued)
for the years ended December 31, 1997 and 1996
Fidelity
---------------------------------------------------------------------
Growth Overseas Asset Manager
-------------------- ----------------------- -----------------------
1997 1996 1997 1996 1997 1996
Operations:
Dividend
incom $ 325,488 $ 206,470 $ 92,988 $ 9,445 $ 763,196 $ 98,943
Mortality
& expense
charges 137,514 71,907 18,503 9,283 108,982 44,655
Net Investment Income
(Loss) 187,974 134,563 74,485 162 654,214 54,288
Gain (Loss) on Investments:
Net realized
gain
(loss) 353,918 211,891 59,959 19,409 110,314 58,343
Net change in
unrealized
gain
(loss) 1,595,384 311,416 (37,531) 62,848 703,669 390,495
Net Gain
(Loss) 1,949,302 523,307 22,428 82,257 813,983 448,838
Increase (Decrease)
in Net Assets from
Operat. 2,137,276 657,870 96,913 82,419 1,468,197 503,126
Contract Owner Transactions:
Proceeds from
units
sold 3,826,538 5,798,270 1,120,040 716,922 5,181,615 4,311,179
Cost
of units
redemed (1,640,979) (415,375) (330,480) (91,954) (611,357) (212,023)
Increase
(Decrse) 2,185,559 5,382,895 789,560 624,968 4,570,258 4,099,156
Net
increase
(decrse) 4,322,835 6,040,765 886,473 707,387 6,038,455 4,602,282
Net
Assets,
begin. 8,613,807 2,573,042 1,062,338 354,951 5,991,767 1,389,485
Net
Assets,
ending $12,936,642 $ 8,613,807 $ 1,948,811 $1,062,338 $12,030,222 $ 5,991,767
Units
sold 456,931 805,777 169,260 128,049 730,254 727,908
Units
redeemed (195,006) (57,408) (50,539) (16,250) (87,170) (35,685)
Net increase
(decrease) 261,925 748,369 118,721 111,799 643,084 692,223
Units
outstanding,
begin. 1,131,117 382,748 178,474 66,675 938,555 246,332
Units
outstanding,
ending 1,393,042 1,131,117 297,195 178,474 1,581,639 938,555
The accompanying notes are an integral part of the financial statements
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AUL American Individual Unit Trust
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (continued)
for the years ended December 31, 1997 and 1996
Fidelity
--------------------------------------------------------------------
Index 500 Equity-Income Contrafund
----------- ---------- ----------- ---------- ---------- -----------
1997 1996 1997 1996 1997 1996
Operations:
Dividend
income $ 256,760 $ 45,109 $ 616,205 $ 59,196 $ 205,387 $ 10,399
Mortality
& expense
charges 166,249 44,637 96,237 44,959 111,873 43,120
Net Investment Income
(Loss) 90,511 472 519,968 14,237 93,514 (32,721)
Gain (Loss) on Investments:
Net realized gain
(loss) 562,621 122,509 240,521 38,790 399,353 80,913
Net change in
unrealized gain
(loss) 2,607,904 638,522 958,013 396,053 1,242,165 666,789
Net Gain
(Loss) 3,170,525 761,031 1,198,534 434,843 1,641,518 747,702
Increase (Decrease)
in Net Assets from
Operations 3,261,036 761,503 1,718,502 449,080 1,735,032 714,981
Contract Owner Transactions:
Proceeds from
units sold 11,227,689 5,347,903 4,399,847 4,547,863 4,689,385 4,960,020
Cost of units
redeemed (1,357,807) (272,289) (1,672,256) (287,406) (1,044,864) (186,380)
Increase
(Decrease) 9,869,882 5,075,614 2,727,591 4,260,457 3,644,521 4,773,640
Net increase
(decrease) 13,130,918 5,837,117 4,446,093 4,709,537 5,379,553 5,488,621
Net Assets,
beginning 6,723,977 886,860 5,678,892 969,355 6,223,216 734,595
Net Assets,
ending $19,854,895 $6,723,977 $10,124,985 $5,678,892 $11,602,769 $6,223,216
Units sold 1,160,180 721,534 562,867 725,735 577,185 767,503
Units
redeemed (138,613) (36,902) (218,107) (45,774) (128,422) (27,857)
Net increase
(decrease) 1,021,567 684,632 344,760 679,961 448,763 739,646
Units
outstanding,
beginning 815,022 130,390 842,213 162,252 861,471 121,825
Units
outstanding,
ending 1,836,589 815,022 1,186,973 842,213 1,310,234 861,471
The accompanying notes are an integral part of the financial statements.
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AUL American Individual Unit Trust
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (continued)
for the years ended December 31, 1997 and 1996
American Century Alger
-------------------------------------------- -----------------------
VP Capital Appreciation VP International American Growth
------------ ---------- ---------- --------- ---------- ------------
1997 1996 1997 1996 1997 1996
Operations:
Dividend
income $44,016 $ 138,502 $ 37,999 $ 13,386 $ 102,249 $ 131,042
Mortality
& expense
charges 26,083 21,010 23,017 7,924 148,455 64,041
Net Investment
Income(Loss) 17,933 117,492 14,982 5,462 (46,206) 67,001
Gain (Loss) on Investments:
Net realized gain
(loss) (174,225) 29,651 230,824 14,675 450,958 57,997
Net change in
unrealized gain
(loss) 68,744 (267,775) (68,911) 65,251 1,888,668 429,314
Net Gain
(Loss) (105,481) (238,124) 161,913 79,926 2,339,626 487,311
Increase (Decrease)
in Net Assets from
Operations (87,548) (120,632) 176,895 85,388 2,293,420 554,312
Contract Owner Transactions:
Proceeds from
units sold 1,217,666 1,732,790 2,459,408 433,643 5,486,477 7,105,908
Cost of units
redeemed (1,579,609) (164,269) (880,556) (37,857) (1,632,203) (469,736)
Increase
(Decrease) (361,943) 1,568,521 1,578,852 395,786 3,854,274 6,636,172
Net increase
(decrease) (449,491) 1,447,889 1,755,747 481,174 6,147,694 7,190,484
Net Assets,
beginning 2,279,864 831,975 879,507 398,333 8,440,581 1,250,097
Net Assets,
ending $1,830,373 $ 2,279,864 $ 2,635,254 $ 879,507 $14,588,275 $ 8,440,581
Units sold 199,521 268,925 350,320 77,615 715,079 1,122,887
Units
redeemed (258,864) (25,176) (124,281) (6,759) (222,982) (75,053)
Net increase
(decrease) (59,343) 243,749 226,039 70,856 492,097 1,047,834
Units
outstanding,
beginning 372,019 128,270 145,117 74,261 1,256,070 208,236
Units
outstanding,
ending 312,676 372,019 371,156 145,117 1,748,167 1,256,070
The accompanying notes are an integral part of the financial statements.
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AUL American Individual Unit Trust
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (continued)
for the years ended December 31, 1997 and 1996
Calvert T. Rowe Price PBHG
--------------------- ------------------------ ------------------
Capital Accumulation Equity-Income Growth II Tech &Com
(1) (1)
--------- ----------- ------------ ----------- --------- --------
1997 1996 1997 1996 1997 1997
Operations:
Dividend
income $ 193,311 $ 2,162 $ 929,965 $ 175,556 $ $
Mortality
& expense
charges 18,586 8,980 166,855 51,751 2,506 2,123
Net Investment
Income (Loss) 174,725 (6,818) 763,110 123,805 (2,506) (2,123)
Gain (Loss) on Investments:
Net realized gain
(loss) 48,471 8,363 465,118 124,056 (622) 25,874
Net change in
unrealized gain
(loss) 69,643 44,730 1,904,287 515,833 (18,592) (52,422)
Net Gain
(Loss) 118,114 53,093 2,369,405 639,889 (19,214) (26,548)
Increase (Decrease)
in Net Assets from
Operations 292,839 46,275 3,132,515 763,694 (21,720) ( 28,671)
Contract Owner Transactions:
Proceeds from
units sold 495,600 1,178,357 10,649,296 6,202,566 1,474,635 653,188
Cost of units
redeemed (260,165) (41,758) (1,346,727) (265,100) (931,283) (219,051)
Increase
(Decrease) 235,435 1,136,599 9,302,569 5,937,466 543,352 434,137
Net increase
(decrease) 528,274 1,182,874 12,435,084 6,701,160 521,632 405,466
Net Assets,
beginning 1,332,507 149,633 7,681,960 980,800
Net Assets,
ending $ 1,860,781 $ 1,332,507 $ 20,117,044 $ 7,681,960 $ 521,632 $ 405,466
Units sold 72,221 184,348 1,310,129 958,454 268,845 114,417
Units
redeemed (43,129) (6,178) (165,014) (40,121) (170,964) (35,869)
Net increase
(decrease) 29,092 178,170 1,145,115 918,333 97,881 78,548
Units
outstanding,
beginning 202,261 24,091 1,081,376 163,043
Units
outstanding,
ending 231,353 202,261 2,226,491 1,081,376 97,881 78,548
(1) for the period from May 1, 1997 to December 31, 1997
The accompanying notes are an integral part of the financial statements.
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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 variable 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),
American Century Variable Portfolios, Inc. (American Century), Alger American
Fund (Alger), Acacia Capital Corporation (Calvert), T. Rowe Price Equity Series,
Inc. (T. Rowe Price), and PBHG Insurance Series Fund, Inc. (PBHG).
Security Valuation, Transactions and Related Income
The market value of investments is based on the closing bid prices at December
31, 1997. 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 years
ended December 31, 1997 and 1996 were $1,301,444 and $539,383 respectively.
Taxes
Operations of the Variable Account are part of, and are taxed with, the
operations of AUL, which is taxed as a "life insurance company" under the
Internal Revenue Code. Under current law, investment income, including realized
and unrealized capital gains of the investment accounts, is not taxed to AUL to
the extent it is applied to increase reserves under the contracts. The Variable
Account has not been charged for federal and state income taxes since none have
been imposed.
Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increases and decreases in net assets from operations
during the reporting period. Actual results could differ from those estimates.
2. Account Charges
AUL may assess a premium tax charge based on premium taxes incurred. Premium
taxes currently range between 0% and 3.5%, but are subject to change by
governmental entities.
AUL deducts an annual administrative charge from each 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, 1997 and 1996 were $81,617 and
$21,722, 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. However,
the contract owner has a right to a full refund of the contributions made under
the contract for any reason within ten days of original contract purchase. If a
particular state allows a longer "free look" period, then such state law will be
followed for Participants residing in that state. The amount of the withdrawal
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 Year Withdrawal 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 aggregate 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.
14
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NOTES TO FINANCIAL STATEMENTS (continued)
3.Accumulation Unit Value
The change in the Net Asset Value per unit for the year ended December 31, 1997,
or from commencement of operation, May 1, 1997, through December 31, 1997, is:
12/31/97 12/31/96 Change
Series Fund:
Equity $8.902288 $6.955832 28.0%
Money Market 1.118656 1.079623 3.6%
Bond 6.331288 5.944584 6.5%
Managed 7.809842 6.538610 19.4%
Tactical Asset 6.900921 6.050897 14.0%
Fidelity:
High Income 7.775151 6.690998 16.2%
Growth 9.286787 7.614970 22.0%
Overseas 6.557107 5.951929 10.2%
Asset Manager 7.606226 6.383686 19.2%
Index 500 10.811089 8.249673 31.0%
Equity Income 8.530417 6.742581 26.5%
Contrafund 8.855954 7.223554 22.6%
American Century:
VP Capital
Appreciation 5.855008 6.128474 4.5%
VP International 7.100007 6.060122 17.2%
Alger:
American Growth 8.344870 6.719732 24.2%
Calvert:
Capital Accumulati 8.041824 6.587155 22.1%
T. Rowe Price:
Equity Income 9.040136 7.104109 27.3%
12/31/97 05/01/97 Change
PBHG:
Growth II $5.330245 $5.000000 6.6%
Technology &
Communications 5.161663 5.000000 3.2%
4. Cost of Investments
The cost of investments at December 31, 1997, is:
Series Fund:
Equity $ 7,534,677
Money Market 5,092,365
Bond 2,410,971
Managed 5,565,128
Tactical Asset 3,099,411
Fidelity:
High Income 4,100,802
Growth 10,831,970
Overseas 1,898,608
Asset Manager 10,808,977
Fidelity (continued):
Index $ 16,529,378
Equity-Income 8,714,286
Contrafund 9,669,697
American Century:
Vp Capital
Appreciation 1,945,238
Vp International 2,604,897
Alger:
American Growth 12,261,354
Calvert:
Capital
Accumulation $ 1,746,677
T. Rowe Price:
Equity Income 17,628,645
PBHG:
Growth II 540,224
Technology &
Communications 457,888
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
5. Net Assets
Net Assets at December 31, 1997, are:
Series Fund
-------------------------------------------------------------
Equity Money Mark Bond Managed Tact Asset
Proceeds units sold $ 7,756,774 $ 47,185,815 $ 4,465,102 $ 5,735,570 $2,991,272
Cost of units
redeemed (697,389) (42,341,403) (2,310,798) (634,515) (168,633)
Net investme
income (loss) 152,672 247,953 218,266 323,706 224,993
Net realized
gain (loss) 322,620 38,401 140,367 51,779
Unrealized gain
(loss) on investments 1,441,558 (44,113) 613,414 69,336
$ 8,976,235 $ 5,092,365 $ 2,366,858 $ 6,178,542 $3,168,747
Fidelity
-------------------------------------------------------------
High Income Growth Overseas Asset Mgr Index 500
Proceeds from units
sold $ 4,603,706 $12,203,015 $2,298,277 $11,005,023$17,409,674
Cost of units
redeemed (782,564) (2,276,369) (558,112) (1,085,333)(1,658,892)
Net investment
income (loss) 193,777 309,197 72,345 706,425 87,912
Net realized
gain (loss) 85,883 596,127 86,098 182,862 690,684
Unrealized gain
(loss)on investments 385,989 2,104,672 50,203 1,221,245 3,325,517
$ 4,486,791 $12,936,642 $ 1,948,811 $12,030,222$19,854,895
Fidelity American Century Alger
-------------------------- ----------------------- -----------
VP Capital VP American
Equity-Inc Contrafund Appreciat Internal Growth
Proceeds from units
sold $ 9,883,288 $ 10,357,643 $ 3,763,469 $3,292,330 $13,853,276
Cost of units
redeemed (1,990,168) (1,236,288) (1,812,177) (954,640) (2,123,140)
Net investment
income (loss) 538,473 67,007 129,962 17,482 17,053
Net realized
gain (loss) 282,693 481,335 (136,016) 249,725 514,165
Unrealized gain
(loss)on investments 1,410,699 1,933,072 (114,865) 30,357 2,326,921
$ 10,124,985 $ 11,602,769 $ 1,830,373 $ 2,635,254$14,588,275
Calvert T.RowePrice PBHG
------------- ------------ -----------------------
Capital Technology &
Accumulation Equity Inc. Growth II Communications
Proceeds from units
sold $ 1,816,854 $ 17,783,366 $ 1,474,635 $ 653,188
Cost of units
redeemed (302,362) (1,646,879) (931,283) (219,051)
Net investment
income (loss) 175,160 898,262 (2,506) (2,123)
Net realized
gain (loss) 57,025 593,896 (622) 25,874
Unrealized gain
(loss)on investments 114,104 2,488,399 (18,592) (52,422)
$ 1,860,781 $ 20,117,044 $ 521,632 $ 405,466
16
