Semi-Annual Report
AUL American Individual Unit Trust
June 30,1999
This report and the financial statements contained herein are for the general
information of the Participants. The Report is not to be distributed to
investors as sales literature unless accompanied or preceded by an effective
prospectus of AUL American Series Fund, Inc. and AUL American Individual Unit
Trust, which contains further information concerning the sales charge, expenses
and other pertinent information.
American United Life Insurance Company
<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
The current economic expansion continues to surprise investors with its
longevity. It has now endured for 100 months, making it the longest peacetime
expansion in U.S. history. If the economy can remain on its current track for
another six months, it will achieve the distinction of being the longest
expansion of all time.
However, economic growth can represent a mixed blessing. The Federal Reserve has
been keeping a close eye on domestic growth watching for signs of inflationary
pressures. At its June 29-30 meeting, the Fed decided to take a pre-emptive step
by raising the Federal Funds rate by 25 basis points, representing the first
such increase since March 1997. The Fed is hoping that this modest move will
eliminate the need for more drastic action at some later date.
Bond prices declined steadily during the first half of the year as market
participants reacted to the surprisingly strong growth of the U.S. economy and
the rekindling of expectations for a rebound in the global economy. The ten-year
Treasury yield increased from 4.65% at the beginning of the year to over 5.75%
at the end of June.
As we began 1999, stock market performance was driven by large growth and
technology companies, the same as in 1998. But the increase in long-term
interest rates stalled the upward momentum in the equity market. The stock
market experienced a dramatic change in leadership in April as investors began
focusing on industries that would benefit from stronger global growth. This
rotation resulted in a remarkable rebound in economically sensitive and small
capitalization companies.
As we enter the second half of 1999, the marketplace remains vulnerable to
external surprises. The Federal Reserve will be closely watching the growth rate
of the U.S. economy. Without some moderation, the Federal Reserve may feel
forced to take additional action. Y2K issues will also provide additional
uncertainty as we near the end of 1999.
For information regarding AULs preparation for Y2K, please see AULs website at
www.aul.com or call 1-800-863-9354.
/s/James W. Murphy
James W. Murphy
Chairman of the Board of Directors and President
Indianapolis, Indiana
July 15, 1999
1
<PAGE>
(This page is intentionally blank)
2
<PAGE>
<TABLE>
<CAPTION>
AUL American Individual Unit Trust
STATEMENTS OF NET ASSETS
June 30, 1999
(unaudited)
AUL American Series Fund Fidelity
Tactical Asset
Equity Money Market Bond Managed Allocation High Income
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 12,023,683 $ 9,503,741 $ 7,295,535 $10,736,290 $ 4,925,740 $ 6,513,122
Net Assets $ 12,023,683 $ 9,503,741 $ 7,295,535 $10,736,290 $ 4,925,740 $ 6,513,122
Units outstanding 1,156,450 8,070,560 1,097,314 1,224,127 651,874 826,286
Accumulation Unit Value $ 10.40 $ 1.18 $ 6.65 $ 8.77 $ 7.56 $ 7.88
</TABLE>
<TABLE>
<CAPTION>
Fidelity
Growth Overseas Asset Manager Index 500 Equity-Income Contrafund
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 29,943,089 $ 2,280,795 $23,946,183 $46,689,261 $17,114,835 $24,850,292
Net Assets $ 29,943,089 $ 2,280,795 $23,946,183 $46,689,261 $17,114,835 $24,850,292
Units outstanding 2,058,172 290,730 2,648,641 3,060,218 1,624,829 1,977,015
Accumulation Unit Value $ 14.55 $ 7.85 $ 9.04 $ 15.26 $ 10.53 $ 12.57
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
AUL American Individual Unit Trust
STATEMENTS OF NET ASSETS (continued)
June 30, 1999
(unaudited)
<TABLE>
<CAPTION>
American Century Alger Calvert T. Rowe Price
Social
VP Capital VP American Mid Cap
AppreciationInternational Growth Growth Equity Income
<S> <C> <C> <C> <C> <C>
Assets:
Investments at value $ 1,955,212 $ 4,264,926 $44,001,074 $ 4,356,682 $30,524,557
Net Assets $ 1,955,212 $ 4,264,926 $44,001,074 $ 4,356,682 $30,524,557
Units outstanding 299,643 480,312 3,126,978 392,459 2,807,033
Accumulation Unit Value $ 6.53 $ 8.88 $ 14.07 $ 11.10 $ 10.87
</TABLE>
<TABLE>
<CAPTION>
PBHG
Technology &
Growth IICommunications
<S> <C> <C>
Assets:
Investments at value $ 916,319 $ 3,724,898
Net Assets $ 916,319 $ 3,724,898
Units outstanding 129,404 377,263
Accumulation Unit Value $ 7.08 $ 9.87
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
AUL American Individual Unit Trust
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
AUL American Series Fund
Equity Money Market Bond
<S> <C> <C> <C> <C> <C> <C>
Six months Year Six months Year Six months Year
ended 6/30/99 ended ended 6/30/99 ended ended 6/30/99 ended
(unaudited) 12/31/98 (unaudited) 12/31/98 (unaudited) 12/31/98
Operations:
Dividend income $ 0 $ 1,208,467 $ 187,636 $ 309,581 $ 0 $ 356,348
Mortality & expense
charges 71,586 135,472 54,408 80,348 45,227 57,565
Net Investment Income
(Loss) (71,586) 1,072,995 133,228 229,233 (45,227) 298,783
Gain (Loss) on Investments:
Net realized gain (loss) 339,122 759,326 0 0 (25,583) 90,323
Net change in
unrealized appreciation
(depreciation) 859,033 (1,286,783) 0 0 (98,239) (57,318)
Net Gain (Loss) 1,198,155 (527,457) 0 0 (123,822) 33,005
Increase (Decrease)
in Net Assets from
Operations 1,126,569 545,538 133,228 229,233 (169,049) 331,788
Contract Owner Transactions:
Proceeds from units sold 665,087 5,025,950 11,174,079 20,723,288 2,606,372 10,302,734
Cost of units redeemed (1,814,297) (2,501,399) (11,085,075) (16,763,377) (1,510,541) (6,632,627)
Increase (Decrease) (1,149,210) 2,524,551 89,004 3,959,911 1,095,831 3,670,107
Net increase (decrease) (22,641) 3,070,089 222,232 4,189,144 926,782 4,001,895
Net assets, beginning 12,046,324 8,976,235 9,281,509 5,092,365 6,368,753 2,366,858
Net assets, ending $ 12,023,683 $ 12,046,324 $ 9,503,741 $ 9,281,509 $ 7,295,535 $ 6,368,753
Units sold 69,226 554,482 9,555,542 18,126,037 386,373 1,558,976
Units redeemed (189,481) (286,064) (9,487,363) (14,673,060) (225,465) (996,361)
Net increase (decrease) (120,255) 268,418 68,179 3,452,977 160,908 562,615
Units outstanding, beginning 1,276,705 1,008,287 8,002,381 4,549,404 936,406 373,791
Units outstanding, ending 1,156,450 1,276,705 8,070,560 8,002,381 1,097,314 936,406
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
AUL American Individual Unit Trust
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
AUL American Series Fund Fidelity
Managed Tactical Asset Allocation High Income
<S> <C> <C> <C> <C> <C> <C>
Six months Year Six months Year Six months Year
ended 6/30/99 ended ended 6/30/99 ended ended 6/30/99 ended
(unaudited) 12/31/98 (unaudited) 12/31/98 (unaudited) 12/31/98
Operations:
Dividend income $ 0 $ 879,133 $ 0 $ 143,737 $ 550,187 $ 511,093
Mortality & expense
charges 63,842 108,989 30,797 53,772 38,227 68,251
Net Investment Income
(Loss) (63,842) 770,144 (30,797) 89,965 511,960 442,842
Gain (Loss) on Investments:
Net realized gain (loss) 154,225 322,951 50,794 97,135 (129,122) (10,308)
Net change in
unrealized appreciation
(depreciation) 415,824 (606,150) 148,396 (7,394) 42,317 (917,341)
Net Gain (Loss) 570,049 (283,199) 199,190 89,741 (86,805) (927,649)
Increase (Decrease)
in Net Assets from
Operations 506,207 486,945 168,393 179,706 425,155 (484,807)
Contract Owner Transactions:
Proceeds from units sold 1,037,428 4,982,891 370,863 2,234,640 1,107,278 4,401,980
Cost of units redeemed (856,517) (1,599,206) (550,290) (646,319) (676,777) (2,746,498)
Increase (Decrease) 180,911 3,383,685 (179,427) 1,588,321 430,501 1,655,482
Net increase (decrease) 687,118 3,870,630 (11,034) 1,768,027 855,656 1,170,675
Net assets, beginning 10,049,172 6,178,542 4,936,774 3,168,747 5,657,466 4,486,791
Net assets, ending $ 10,736,290 $ 10,049,172 $ 4,925,740 $ 4,936,774 $ 6,513,122 $ 5,657,466
Units sold 123,044 611,674 50,508 307,808 144,272 557,621
Units redeemed (101,328) (200,364) (73,998) (91,606) (88,116) (364,514)
Net increase (decrease) 21,716 411,310 (23,490) 216,202 56,156 193,107
Units outstanding, beginning 1,202,411 791,101 675,364 459,162 770,130 577,023
Units outstanding, ending 1,224,127 1,202,411 651,874 675,364 826,286 770,130
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
AUL American Individual Unit Trust
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
Fidelity
Growth Overseas Asset Manager
<S> <C> <C> <C> <C> <C> <C>
Six months Year Six months Year Six months Year
ended 6/30/99 ended ended 6/30/99 ended ended 6/30/99 ended
(unaudited) 12/31/98 (unaudited) 12/31/98 (unaudited) 12/31/98
Operations:
Dividend income $ 2,589,382 $ 1,842,437 $ 85,441 $ 142,764 $ 1,531,407 $ 1,572,246
Mortality & expense
charges 160,821 206,604 13,530 25,494 134,901 200,732
Net Investment Income
(Loss) 2,428,561 1,635,833 71,911 117,270 1,396,506 1,371,514
Gain (Loss) on Investments:
Net realized gain (loss) 439,810 427,538 17,616 79,359 151,774 217,187
Net change in
unrealized appreciation
(depreciation) 417,572 3,461,307 67,779 2,162 (544,219) 471,447
Net Gain (Loss) 857,382 3,888,845 85,395 81,521 (392,445) 688,634
Increase (Decrease)
in Net Assets from
Operations 3,285,943 5,524,678 157,306 198,791 1,004,061 2,060,148
Contract Owner Transactions:
Proceeds from units sold 6,049,708 5,185,245 227,122 756,543 4,121,045 8,266,842
Cost of units redeemed (1,397,943) (1,641,184) (177,711) (830,067) (1,322,565) (2,213,570)
Increase (Decrease) 4,651,765 3,544,061 49,411 (73,524) 2,798,480 6,053,272
Net increase (decrease) 7,937,708 9,068,739 206,717 125,267 3,802,541 8,113,420
Net assets, beginning 22,005,381 12,936,642 2,074,078 1,948,811 20,143,642 12,030,222
Net assets, ending $ 29,943,089 $ 22,005,381 $ 2,280,795 $ 2,074,078 $23,946,183 $20,143,642
Units sold 439,657 485,596 30,108 104,305 468,484 1,026,078
Units redeemed (101,512) (158,611) (23,441) (117,437) (150,730) (276,830)
Net increase (decrease) 338,145 326,985 6,667 (13,132) 317,754 749,248
Units outstanding, beginning 1,720,027 1,393,042 284,063 297,195 2,330,887 1,581,639
Units outstanding, ending 2,058,172 1,720,027 290,730 284,063 2,648,641 2,330,887
</TABLE>
The accompanying notes are an integral part of the financial statements
7
<PAGE>
AUL American Individual Unit Trust
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
Fidelity
Index 500 Equity-Income Contrafund
<S> <C> <C> <C> <C> <C> <C>
Six months Year Six months Year Six months Year
ended 6/30/99 ended ended 6/30/99 ended ended 6/30/99 ended
(unaudited) 12/31/98 (unaudited) 12/31/98 (unaudited) 12/31/98
Operations:
Dividend income $ 611,264 $ 814,461 $ 691,788 $ 664,739 $ 853,879 $ 697,183
Mortality & expense
charges 253,031 343,886 95,795 156,072 138,009 182,321
Net Investment Income
(Loss) 358,233 470,575 595,993 508,667 715,870 514,862
Gain (Loss) on Investments:
Net realized gain (loss) 1,144,316 1,474,939 256,277 567,528 944,307 1,280,300
Net change in
unrealized appreciation
(depreciation) 2,906,311 4,619,318 930,148 50,335 607,946 2,159,171
Net Gain (Loss) 4,050,627 6,094,257 1,186,425 617,863 1,552,253 3,439,471
Increase (Decrease)
in Net Assets from
Operations 4,408,860 6,564,832 1,782,418 1,126,530 2,268,123 3,954,333
Contract Owner Transactions:
Proceeds from units sold 9,536,119 13,056,130 2,093,533 5,870,283 5,943,985 7,869,755
Cost of units redeemed (3,033,665) (3,697,910) (1,122,052) (2,760,862) (2,714,189) (4,074,484)
Increase (Decrease) 6,502,454 9,358,220 971,481 3,109,421 3,229,796 3,795,271
Net increase (decrease) 10,911,314 15,923,052 2,753,899 4,235,951 5,497,919 7,749,604
Net assets, beginning 35,777,947 19,854,895 14,360,936 10,124,985 19,352,373 11,602,769
Net assets, ending $ 46,689,261 $ 35,777,947 $17,114,835 $14,360,936 $24,850,292 $19,352,373
Units sold 669,276 1,085,169 213,816 649,952 499,319 810,584
Units redeemed (220,454) (310,362) (116,142) (309,770) (224,662) (418,460)
Net increase (decrease) 448,822 774,807 97,674 340,182 274,657 392,124
Units outstanding, beginning 2,611,396 1,836,589 1,527,155 1,186,973 1,702,358 1,310,234
Units outstanding, ending 3,060,218 2,611,396 1,624,829 1,527,155 1,977,015 1,702,358
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
AUL American Individual Unit Trust
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
American Century Alger
VP Capital Appreciation VP International American Growth
<S> <C> <C> <C> <C> <C> <C>
Six months Year Six months Year Six months Year
ended 6/30/99 ended ended 6/30/99 ended ended 6/30/99 ended
(unaudited) 12/31/98 (unaudited) 12/31/98 (unaudited) 12/31/98
Operations:
Dividend income $ 0 $ 92,912 $ 0 $ 181,658 $ 3,678,488 $3,072,584
Mortality & expense
charges 11,195 21,662 25,064 41,802 228,837 254,268
Net Investment Income
(Loss) (11,195) 71,250 (25,064) 139,856 3,449,651 2,818,316
Gain (Loss) on Investments:
Net realized gain (loss) (30,134) (101,739) 45,695 162,714 913,834 680,021
Net change in
unrealized appreciation
(depreciation) 302,608 (43,514) 244,984 122,644 881,364 4,762,625
Net Gain (Loss) 272,474 (145,253) 290,679 285,358 1,795,198 5,442,646
Increase (Decrease)
in Net Assets from
Operations 261,279 (74,003) 265,615 425,214 5,244,849 8,260,962
Contract Owner Transactions:
Proceeds from units sold 121,809 1,091,925 508,169 3,269,485 10,899,535 9,575,643
Cost of units redeemed (169,820) (1,106,351) (311,837) (2,526,974) (2,361,612) (2,206,578)
Increase (Decrease) (48,011) (14,426) 196,332 742,511 8,537,923 7,369,065
Net increase (decrease) 213,268 (88,429) 461,947 1,167,725 13,782,772 15,630,027
Net assets, beginning 1,741,944 1,830,373 3,802,979 2,635,254 30,218,302 14,588,275
Net assets, ending $ 1,955,212 $ 1,741,944 $ 4,264,926 $ 3,802,979 $44,001,074 $30,218,302
Units sold 21,082 190,371 59,596 410,293 832,056 954,844
Units redeemed (29,424) (195,062) (36,237) (324,496) (180,991) (227,098)
Net increase (decrease) (8,342) (4,691) 23,359 85,797 651,065 727,746
Units outstanding, beginning 307,985 312,676 456,953 371,156 2,475,913 1,748,167
Units outstanding, ending 299,643 307,985 480,312 456,953 3,126,978 2,475,913
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
AUL American Individual Unit Trust
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
Calvert T. Rowe Price PBHG
Social Mid Cap Growth Equity Income Growth II
<S> <C> <C> <C> <C> <C> <C>
Six months Year Six months Year Six months Year
ended 6/30/99 ended ended 6/30/99 ended ended 6/30/99 ended
(unaudited) 12/31/98 (unaudited) 12/31/98 (unaudited) 12/31/98
Operations:
Dividend income $ 0 $ 416,178 $ 368,061 $ 1,359,994 $ 0 $ 0
Mortality & expense
charges 23,974 32,182 176,314 305,219 4,618 8,979
Net Investment Income
(Loss) (23,974) 383,996 191,747 1,054,775 (4,618) (8,979)
Gain (Loss) on Investments:
Net realized gain (loss) 53,043 74,290 850,721 1,282,361 5,083 55,548
Net change in
unrealized appreciation
(depreciation) 305,072 181,856 2,104,594 (650,236) 168,467 50,158
Net Gain (Loss) 358,115 256,146 2,955,315 632,125 173,550 105,706
Increase (Decrease)
in Net Assets from
Operations 334,141 640,142 3,147,062 1,686,900 168,932 96,727
Contract Owner Transactions:
Proceeds from units sold 636,889 1,432,540 3,209,067 10,967,080 136,360 974,556
Cost of units redeemed (164,640) (383,171) (3,865,492) (4,737,104) (31,353) (950,535)
Increase (Decrease) 472,249 1,049,369 (656,425) 6,229,976 105,007 24,021
Net increase (decrease) 806,390 1,689,511 2,490,637 7,916,876 273,939 120,748
Net assets, beginning 3,550,292 1,860,781 28,033,920 20,117,044 642,380 521,632
Net assets, ending $ 4,356,682 $ 3,550,292 $30,524,557 $28,033,920 $ 916,319 $ 642,380
Units sold 63,794 155,941 315,629 1,169,392 21,752 182,804
Units redeemed (15,724) (42,905) (387,550) (516,929) (5,153) (167,880)
Net increase (decrease) 48,070 113,036 (71,921) 652,463 16,599 14,924
Units outstanding, beginning 344,389 231,353 2,878,954 2,226,491 112,805 97,881
Units outstanding, ending 392,459 344,389 2,807,033 2,878,954 129,404 112,805
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
AUL American Individual Unit Trust
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PBHG
Technology & Communications
<S> <C> <C>
Six months Year
ended 6/30/99 ended
(unaudited) 12/31/98
Operations:
Dividend income $ 0 $ 99
Mortality & expense
charges 11,828 7,423
Net Investment Income
(Loss) (11,828) (7,324)
Gain (Loss) on Investments:
Net realized gain (loss) 181,189 (41,887)
Net change in
unrealized appreciation
(depreciation) 590,487 260,146
Net Gain (Loss) 771,676 218,259
Increase (Decrease)
in Net Assets from
Operations 759,848 210,935
Contract Owner Transactions:
Proceeds from units sold 2,457,440 901,997
Cost of units redeemed (616,027) (394,761)
Increase (Decrease) 1,841,413 507,236
Net increase (decrease) 2,601,261 718,171
Net assets, beginning 1,123,637 405,466
Net assets, ending $ 3,724,898 $ 1,123,637
Units sold 291,063 162,751
Units redeemed (80,507) (74,592)
Net increase (decrease) 210,556 88,159
Units outstanding, beginning 166,707 78,548
Units outstanding, ending 377,263 166,707
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
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. (AUL American
Series Fund), Fidelity Variable Insurance Products Fund and Fidelity
Variable Insurance Products Fund II(Fidelity), American Century Variable
Portfolios, Inc. (American Century), Alger American Fund (Alger), Calvert
Variable Series (Calvert), T. Rowe Price Equity Series, Inc. (T. Rowe
Price), and PBHG Insurance Series Fund, Inc. (PBHG).
Security Valuation Transactions and Related Income
The market value of investments are based on the closing bid prices at June
30, 1999. 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, 1999 were $1,582,002.
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 six months ended June 30, 1999 were
$107,899
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. 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.
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
3. Accumulation Unit Value
The change in the Accumulation Unit Value per unit for the six months ended
June 30, 1999, is:
6/30/99 12/31/98 Change
AUL American Series Fund:
Equity $ 10.396809 $ 9.435612 10.2%
Money Market 1.177345 1.159621 1.5%
Bond 6.647496 6.800043 -2.2%
Managed 8.770258 8.357465 4.9%
Tactical Asset
Allocation 7.555448 7.309123 3.4%
Fidelity:
High Income 7.882015 7.346048 7.3%
Growth 14.547136 12.793102 13.7%
Overseas 7.844749 7.301225 7.4%
Asset Manager 9.040529 8.642178 4.6%
Index 500 15.256279 13.700933 11.4%
Equity Income 10.532503 9.403827 12.0%
Contrafund 12.568846 11.367786 10.6%
American Century:
VP Capital
Appreciation 6.526312 5.657448 15.4%
VP International 8.883826 8.327111 6.7%
Alger:
American Growth 14.069168 12.203752 15.3%
Calvert:
Social Mid Cap
Growth 11.098559 10.307229 7.7%
T. Rowe Price:
Equity Income 10.873328 9.737388 11.7%
PBHG:
Growth II 7.080675 5.694833 24.3%
Technology &
Communications 9.871875 6.739634 46.5%
4. Cost of Investments
The cost of investments at June 30, 1999, is:
AUL American Series Fund:
Equity $ 11,009,875
Money Market 9,503,741
Bond 7,495,205
Managed 10,313,202
Tactical Asset
Allocation 4,715,401
Fidelity:
High Income 7,002,158
Growth 23,959,538
Overseas 2,160,651
Asset Manager 22,797,709
Index 500 $ 35,838,115
Equity Income 14,723,653
Contrafund 20,150,102
American Century:
VP Capital
Appreciation 1,810,984
VP International 3,866,941
Alger:
American Growth 36,030,141
Calvert:
Social Mid Cap
Growth $ 3,755,644
T. Rowe Price:
Equity Income 26,581,795
PBHG:
Growth II 716,286
Technology &
Communications 2,926,660
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<TABLE>
<CAPTION>
NOTES TO FINANCIAL STATEMENTS (continued)
5. Net Assets
Net Assets at June 30, 1999, are:
AUL American Series Fund
Tactical Asset
Equity Money Market Bond Managed Allocation
<S> <C> <C> <C> <C> <C>
Proceeds from units sold $ 13,447,811 $ 79,083,181 $17,374,208 $11,755,888 $ 5,596,773
Cost of units redeemed (5,013,085) 70,189,855) (10,453,966) (3,090,238) (1,365,241)
Net investment income 1,154,081 610,415 471,822 1,030,009 284,162
Net realized gain (loss) 1,421,068 (0) 103,141 617,543 199,707
Unrealized appreciation
(depreciation) 1,013,808 (0) (199,670) 423,088 210,339
$ 12,023,683 $ 9,503,741 $ 7,295,535 $10,736,290 $ 4,925,740
</TABLE>
<TABLE>
<CAPTION>
Fidelity
High Income Growth Overseas Asset Manager Index 500
<S> <C> <C> <C> <C> <C>
Proceeds from units sold $ 10,112,966 $ 23,437,967 $ 3,281,941 $23,392,907 $40,001,922
Cost of units redeemed (4,205,840) (5,315,496) (1,565,890) (4,621,468) (8,390,466)
Net investment income 1,148,579 4,373,591 261,526 3,474,446 916,720
Net realized gain (loss) (53,547) 1,463,476 183,074 551,824 3,309,939
Unrealized appreciation
(depreciation) (489,036) 5,983,551 120,144 1,148,474 10,851,146
$ 6,513,122 $ 29,943,089 $ 2,280,795 $23,946,183 $46,689,261
</TABLE>
<TABLE>
<CAPTION>
Fidelity American Century Alger
VP Capital VP American
Equity-IncomeContrafund Appreciation International Growth
<S> <C> <C> <C> <C> <C>
Proceeds from units sold $ 17,847,104 $ 24,171,382 $ 4,977,203 $ 7,069,985 $34,328,432
Cost of units redeemed (5,873,082) (8,024,961) (3,088,348) (3,793,450) (6,691,330)
Net investment income 1,643,133 1,297,739 190,017 132,273 6,285,019
Net realized gain (loss) 1,106,498 2,705,942 (267,888) 458,133 2,108,020
Unrealized appreciation
(depreciation) 2,391,182 4,700,190 144,228 397,985 7,970,933
$ 17,114,835 $ 24,850,292 $ 1,955,212 $ 4,264,926 $44,001,074
</TABLE>
<TABLE>
<CAPTION>
Calvert T. Rowe Price PBHG
Social
Mid Cap Technology &
Growth Equity Income Growth II Communications
<S> <C> <C> <C> <C>
Proceeds from units sold $ 3,886,276 $ 31,959,509 $ 2,585,550 $ 4,012,597
Cost of units redeemed (850,173) (10,249,476) (1,913,170) (1,229,839)
Net investment income 535,183 2,144,783 (16,103) (21,276)
Net realized gain (loss) 184,358 2,726,979 60,009 165,178
Unrealized appreciation
(depreciation) 601,038 3,942,762 200,033 798,238
$ 4,356,682 $ 30,524,557 $ 916,319 $ 3,724,898
</TABLE>
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American United Life Insurance Company
One American Square
P.O. Box 368
Indianapolis, Indiana 46206-0368
www.aul.com
7-13971B (7/99)
