FORM NSAR-U
SEMI-ANNUAL REPORT
FOR REGISTERED INVESTMENT COMPANIES
Report for six month period ending: / / (a)
or fiscal year ending: 12 / 31 /1998 (b)
Is this a transition report?: (Y/N) N
--------
Is this an amendment to a previous filing? (Y/N) N
--------
Those items or sub-items with a box "**" after the item number should be
completed only if the answer has changed from the previous filing on this form.
1. A. Registrant Name: AUL American Individual Unit Trust
B. File Number: 811-8536
C. Telephone Number: ( 317 ) 285-1877
2. A. Street: One American Square, P.O. Box 368
B. City: Indianapolis C. State: IN D. Zip Code:46206 Zip Ext:0368
E. Foreign Country: Foreign Postal Code:
3. Is this the first filing on this form by Registrant? (Y/N) N
4. Is this the last filing on this form by Registrant? (Y/N) N
5. Is Registrant a small business investment company (SBIC)? (Y/N) N
[If answer is "Y" (Yes), complete only items 89 through 110.
6. Is Registrant a unit investment trust (UIT)? (Y/N). Y
[If answer is "Y" (Yes) complete only items 111 through 132.]
7. A. Is Registrant a series or multiple portfolio company? (Y/N) N
[If answer is "N" (No), go to item 8.]
B. How many separate series or portfolios did Registrant have at the
end of the period?____________
SCREEN NUMBER: 01 PAGE NUMBER: 01 SEC2100 (S/90)
<PAGE>
For period ending 12/31/1998 If fling more then one
File number 811-8536 Page 2, "X" box: __
C. List the name of each series or portfolio and give a consecutive number to
each series or portfolio starting with the number 1. USE THIS SAME
NUMERICAL DESIGNATION FOR EACH SERIES OR PORTFOLIO IN THE SERIES INFORMATION
BLOCK IN THE TOP RIGHT CORNER OF THE SCREENS SUBMITTED IN THIS FILING AND IN
ALL SUBSEQUENT FILINGS ON THIS FORM. THIS INFORMATION IS REQUIRED EACH TIME
THE FORM IS FILED.
Is this the
Series last fling
Number Series Name for this series?
- ------ ----------- ----------------
1 (Y/N)
(NOTE: See item D(8) of the general instructions to the form for information on
how to complete the form for series companies.)
SCREEN NUMBER: 02 PACE NUMBER: 02 SEC2100 (5/90)
<PAGE>
For period ending 12/3l/1998 If filing more than one
File number 811-8536 Page 47, "X" box:___
UNIT INVESTMENT TRUSTS
111. A. ** Depositor Name:___________________________________________
B. ** File Number (If any):______________
C. ** City:_______ State: __________Zip Code:____ Zip Ext.:_____
** Foreign Country:____________ Foreign Postal Code:_________
111. A. ** Depositor Name:___________________________________________
B. ** File Number (If any):______________
C. ** City:_______ State: __________Zip Code:____ Zip Ext.:_____
** Foreign Country:____________ Foreign Postal Code:_________
112. A. ** Sponsor Name:_____________________________________________
B. ** File Number (If any):______________
C. ** City:_______ State: __________Zip Code:____ Zip Ext.:_____
** Foreign Country:____________ Foreign Postal Code:_________
112. A. ** Sponsor Name:_____________________________________________
B. ** File Number (If any):______________
C. ** City:_______ State: __________Zip Code:____ Zip Ext.:_____
** Foreign Country:____________ Foreign Postal Code:_________
SCREEN NUMBER: 55 PAGE NUMBER: 47 SEC2100 (5/90)
<PAGE>
For period ending 12/31/1998 If filing more than one
File number 811-8536 Page 48, "X" box: __
111. A.** Trustee Name:________________________________________________________
B.** City__________ State: __________ Zip Code:_______ Zip Ext.:________
** Foreign Country:____________________ Foreign Postal Code:____________
113. A.** Trustee Name:________________________________________________________
B.** City__________ State: __________ Zip Code:_______ Zip Ext.:________
** Foreign Country:____________________ Foreign Postal Code:____________
114. A.** Principal Underwriter Name:_________________________________________
B.** File Number: 8-_____________________________________________________
C.** City:___________ State:____________ Zip Code:________ Zip Ext.:_____
** Foreign Country: __________________ Foreign Postal Code:___________
114. A.** Principal Underwriter Name:_________________________________________
B.** File Number: 8-_____________________________________________________
C.** City:___________ State:____________ Zip Code:________ Zip Ext.:_____
** Foreign Country: __________________ Foreign Postal Code:___________
115. A.** Independent Public Accountant Name:
B.** City__________ State: __________ Zip Code:_______ Zip Ext.:________
** Foreign Country:____________________ Foreign Postal Code:____________
115. A.** Independent Public Accountant Name:
B.** City__________ State: __________ Zip Code:_______ Zip Ext.:________
** Foreign Country:____________________ Foreign Postal Code:____________
SCREEN NUMBER: 56 PAGE NUMBER:48 SEC2100(5/90)
<PAGE>
For period ending 12/31/1998 If filing more than one
File number 811-8536 Page 49, "X" box: __
116. Family of investment companies information:
A.** Is Registrant part of a family of investment companies? (Y/N)_________
(Y/N)
B.** Identify the family in 10 letters:__ __ __ __ __ __ __ __ __ __
(NOTE: In filing this form, use this identification
consistently for all investment companies in family. This
designation is for purposes of this form only.)
117. A.** Is Registrant a separate account of an insurance company?(Y/N)_______
(Y/N)
If answer is "Y" (Yes), are any of the following types of contracts
funded by the Registrant?:
B.** Variable annuity contracts? (Y/N)____________________________________
(Y/N)
C.** Scheduled premium variable life contracts? (Y/N)_____________________
(Y/N)
D.** Flexible premium variable life contracts? (Y/N)______________________
(Y/N)
E.** Other types of insurance products registered under the
Securities Act of 1933.______________________________________________
(Y/N)
118.** State the number of series existing at the end of the period that had
securities registered under the Securities Act of 1933 _______________
119.** State the number of new series for which registration statements under
the Securities Act of 1933 became effective during the period__________
120.** State the total value of the portfolio securities on the date of deposit
for the new series included in item 119 ($000's omitted)____ $__________
121.** State the number of series for which a current prospectus was in
existence at the end of the period _____________________________________
122.** State the number of existing series for which additional units were
registered under the Securities Act of 1933 during the current period___
SCREEN NUMBER: 57 PAGE NUMBER: 49 SEC2100(5/90)
<PAGE>
For period ending 12/31/1998 If filing more than one
File number 811-8536 Page 50 "X" box: __
123.** State the total value of the additional units considered in answering
item 122 ($000's omitted) _______________________________ $_____________
124.** State the total value of units of prior series that were placed in the
portfolios of subsequent series during the current period (the value
of these units is to be measured on the date they were placed in the
subsequent series)($000'S omitted) ______________________ $_____________
125.** State the total dollar amount of sales loads collected (before
reallowances to other brokers or dealers) by Registrant's principal
underwriter and any underwriter which is an affiliated person of the
principal underwriter during the current period solely from the
sale of units of all series of Registrant ($000's omitted).
$____________
126. Of the amount shown in item 125 state the total dollar amount of sales
loads collected from secondary market operations in Registrant's units
(include the sales loads, if any, collected on units of a prior series
placed in the portfolio of a subsequent series.) ($000's omitted).
$___________
127. List opposite the appropriate description below the number of series whose
portfolios are invested primarily (based upon a percentage of NAV) in each
type of security shown, the aggregate total assets at market value as of a
date at or near the end of the current period of each such group of
series and the total income distributions made by each such group of
series during the current period(excluding distributions of realized gains,
if any):
<TABLE>
<S> <C> <C> <C>
Number of Total AssetsTotal Income
Series $000's Distributions
Investing omitted 000s omitted
A.U.S. Treasury direct issue _____________ ______ $________ $___________
B.U.S Government agency ___________________ ______ $________ $___________
C.State and municipal tax-free_____________ ______ $________ $___________
D.Public utility debt _____________________ ______ $________ $___________
E.Brokers or dealers debt or debt of
brokers' or dealers' parent _____________ ______ $________ $___________
F.All other corporate intermed. & long-
term debt _______________________________ ______ $________ $___________
G.All other corporate short-term debt _____ ______ $________ $___________
H.Equity securities of brokers or dealers
or parents of brokers or dealers_________ ______ $________ $___________
I.Investment company equity securities_____ 1 $ 231,168 $___________
J.All other equity securities______________ ______ $________ $___________
K.Other securities_________________________ ______ $________ $___________
L.Total assets of all series of registrant_ ______ $ 231,168 $___________
</TABLE>
SCREEN NUMBER: 58 PAGE NUMBER: 50 SEC2100(5/90)
<PAGE>
For period ending 12/31/1998 If filing more than one
File number 811-8536 Page 51, "X" box: __
128.** Is the timely payment of principal and interest on any of the portfolio
securities held by any of Registrant's series at the end of the
current period insured or guaranteed by an entity other than the issuer?
(Y/N)_________________
[If answer is "N" (No), go to item 131.] Y/N
129.** Is the issuer of any instrument covered in item 128 delinquent or in
default as to payment of principal or interest at the end of the current
period?(Y/N)____________________________________________________________
[If answer is "N" (No), go to item 131.] Y/N
130.** In computations of NAV or offering price per unit, is any part of the
value attributed to instruments identified in item 129 derived from
insurance or guarantees? (Y/N)__________________________________________
Y/N
131. Total expenses incurred by all series of Registrant during the current
reporting period ($000's omitted) _______________________________ $2,291
132.** List the "811" (Investment Company Act of 1940) registration number for
all Series of Registrant that are being included in this filing:
811-____ 811-_____ 811-_____ 811-____ 811-____
811-____ 811-_____ 811-_____ 811-____ 811-____
811-____ 811-_____ 811-_____ 811-____ 811-____
811-____ 811-_____ 811-_____ 811-____ 811-____
811-____ 811-_____ 811-_____ 811-____ 811-____
811-____ 811-_____ 811-_____ 811-____ 811-____
811-____ 811-_____ 811-_____ 811-____ 811-____
811-____ 811-_____ 811-_____ 811-____ 811-____
811-____ 811-_____ 811-_____ 811-____ 811-____
SCREEN NUMBER: 59 PAGE NUMBER: 51 SEC2100 (5/90)
<PAGE>
This report is signed on behalf of the registrant in the City of Indianapolis,
State of Indiana, on the 18th day of February, 1999.
AUL AMERICAN INDIVIDUAL UNIT TRUST
(Name of Registrant)
by:\s\ James W. Murphy witness: \s\ Richard A. Wacker
___________________ _____________________
James W. Murphy Richard A. Wacker
Chairman of the Board of Secretary to the Board of
Directors and President, Directors,
AUL American Series Fund AUL American Series Fund
Annual Report
AUL American Individual Unit Trust
December 31, 1998
This report and the financial statements contained herein are for the general
information of the Participants. The report is not to be distributed to
prospective investors as sales literature unless accompanied or preceded by an
effective prospectus of AUL American Series Fund, Inc. and AUL American Unit
Trust, which contains further information concerning the sales charge, expenses
and other pertinent information.
Cover
<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 has been particularly impressive and is now
entering its eighth year, setting a new record as the longest period of
peacetime growth. This expansion has been unique in that it has been accompanied
by low inflation, low interest rates and low unemployment. At the same time,
positive consumer confidence has translated into greater consumer spending and
strong corporate profits have resulted in increased capital spending, both major
drivers to economic growth.
However, the playing field changed dramatically during the third quarter of 1998
when financial difficulties in Russia, Asia and Latin America and losses
incurred by several well-known hedge funds caused a great deal of concern. In
addition, the capital markets had to contend with a possible credit crunch,
increased antagonism with Iraq, and the threat of political instability here at
home.
The stock market experienced a marked downturn during the third quarter in
response to these concerns. To help alleviate market stress, the Federal Reserve
Board intervened on three occasions by cutting the federal funds rate a total of
75 basis points (0.75%). The Fed's actions, coupled with an easing of the global
concerns, provided renewed vigor for the stock market during the last three
months of the year.
Treasury yields declined sharply in the second half of the year as investors
around the world sought the safety and liquidity of US government-backed, dollar
denominated securities. Yield declines for corporate bonds and mortgage-backed
securities, however, were much smaller. Investors were particularly leery of
smaller, less liquid bond issues, especially those backed by lower quality
credits.
At the present time, most economists are expecting US economic growth to
decelerate in 1999. The slowdown in foreign economies has led to a decline in
demand for American-made products which results in a contraction in US exports.
Generally, economists are also expecting consumer spending to ease and the level
of corporate fixed investments to decline. In such an environment, it will be
difficult for the stock market to achieve above average returns in the coming
year.
/S/James W. Murphy
James W. Murphy
Chairman of the Board of Directors and President
Indianapolis, Indiana
January 28, 1999
1
<PAGE>
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2
<PAGE>
Report of Independent Accountants
The Contract Owners of
AUL American Individual Unit Trust and
Board of Directors of
American United Life Insurance Company
In our opinion, the accompanying statements of net assets, and the related
statements of operations and of changes in net assets present fairly, in all
material respects, the financial position of AUL American Individual Unit Trust
at December 31, 1998, the results of its operations and changes in its net
assets for each of the two years in the period then ended, in conformity with
generally accepted accounting principles. 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 of these financial statements in accordance with generally accepted
auditing standards which 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, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1998, by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
/S/PricewaterhouseCoopers, LLP
Indianapolis, Indiana
February 1, 1999
3
<PAGE>
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4
<PAGE>
AUL American Individual Unit Trust
Statements of Net Assets
December 31, 1998
AUL American Series Fund Fidelity
---------------------------------------------------------- ----------
Equity Money Mkt Bond Managed Tac. Asset High Inc
---------- ---------- ----------- ----------- ----------- ----------
Assets:
Investments
at value $12,046,324 $9,281,509 $ 6,368,753 $10,049,172 $ 4,936,774 $ 5,657,466
Net
Assets $12,046,324 $9,281,509 $ 6,368,753 $10,049,172 $ 4,936,774 $ 5,657,466
Units
outstanding 1,276,705 8,002,381 936,406 1,202,411 675,364 770,130
Accumulation
Unit Value $ 9.44 $ 1.16 $ 6.80 $ 8.36 $ 7.31 $ 7.35
Fidelity
---------------------------------------------------------------------
Growth Overseas Asset Mgr Index 500 Eqty-Inc Contra
---------- ---------- ----------- ----------- ----------- -----------
Assets:
Investments
at value $22,005,381 $2,074,078 $20,143,642 $35,777,947 $14,360,936 $19,352,373
Net Assets$22,005,381 $2,074,078 $20,143,642 $35,777,947 $14,360,936 $19,352,373
Units
outstanding 1,720,027 284,063 2,330,887 2,611,396 1,527,155 1,702,358
Accumulation
Unit Value $ 12.79 $ 7.30 $ 8.64 $ 13.70 $ 9.40 $ 11.37
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
AUL American Individual Unit Trust
Statements of Net Assets (continued)
December 31, 1998
American Century Alger Calvert T Rowe Price
--------------------- ----------- ----------- ------------
VP Capital VP American Soc Mid-Cap
Appreciation Int'l Growth Growth Eqty Income
------------ --------- ----------- ----------- ------------
Assets:
Investments
at value $ 1,741,944 $3,802,979 $30,218,302 $ 3,550,292 $ 28,033,920
Net Assets$ 1,741,944 $3,802,979 $30,218,302 $ 3,550,292 $ 28,033,920
Units
outstanding 307,985 456,953 2,475,913 344,389 2,878,954
Accumulation
Unit Value $ 5.66 $ 8.33 $ 12.20 $ 10.31 $ 9.74
PBHG
----------------------------
Technology &
Growth II Communications
---------- -----------------
Assets:
Investments
at value $ 642,380 $ 1,123,637
Net
Assets $ 642,380 $ 1,123,637
Units
outstanding 112,805 166,707
Accumulation
Unit Value $ 5.69 $ 6.74
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
for the years ended December 31, 1998 and 1997
AUL American Series Fund
---------------------------------------------------------------------
Equity Money Market Bond
---------------------- ---------------------- ---------------------
1998 1997 1998 1997 1998 1997
----------- --------- ---------- ---------- ---------- ---------
Operations:
Dividend
income $ 1,208,467 $ 194,477 $ 309,581 $ 83,949 $ 356,348 $ 155,983
Mortality
& expense
charges 135,472 78,607 80,348 47,237 57,565 26,224
Net Investment
Income
(Loss) 1,072,995 115,870 229,233 136,712 298,783 129,759
Gain (Loss) on Investments:
Net realized
gain (loss) 759,326 285,199 0 0 90,323 37,423
Net change in
unrealized apprec.
(deprec.) (1,286,783) 1,029,868 0 0 (57,318) (35,542)
Net Gain
(Loss) (527,457) 1,315,067 0 0 33,005 1,881
Increase (Decrease)
in Net Assets from
Operations 545,538 1,430,937 229,233 136,712 331,788 131,640
Contract Owner Transactions:
Proceeds from
units sold 5,025,950 4,466,066 20,723,288 11,080,898 10,302,734 2,367,692
Cost of units
redeemed (2,501,399) (595,356)(16,763,377) (8,812,016) (6,632,627)(2,078,457)
Increase
(Decrease) 2,524,551 3,870,710 3,959,911 2,268,882 3,670,107 289,235
Net increase
(decrease) 3,070,089 5,301,647 4,189,144 2,405,594 4,001,895 420,875
Net assets,
beginning 8,976,235 3,674,588 5,092,365 2,686,771 2,366,858 1,945,983
Net assets,
ending $12,046,324 $8,976,235 $ 9,281,509 $ 5,092,365 $ 6,368,753 $2,366,858
========== ========= ========== ========== ========== =========
Units sold 554,482 554,508 18,126,037 10,417,704 1,558,976 381,702
Units
redeemed (286,064) (74,488)(14,673,060) (8,356,283) (996,361) (335,222)
Net increase
(decrease) 268,418 480,020 3,452,977 2,061,421 562,615 46,480
Units
outstanding,
beginning 1,008,287 528,267 4,549,404 2,487,983 373,791 327,311
Units
outstanding,
ending 1,276,705 1,008,287 8,002,381 4,549,404 936,406 373,791
========= ========= ========= ========= ======== ========
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)
for the years ended December 31, 1998 and 1997
AUL American Series Fund Fidelity
---------------------------------------------- ---------------------
Managed Tactical Asset High Income
---------------------- ---------------------- ---------------------
1998 1997 1998 1997 1998 1997
----------- --------- ---------- ---------- ---------- ---------
Operations:
Dividend
income $ 879,133 $ 303,723 $ 143,737 $ 229,808 $ 511,093 $ 176,695
Mortality &
expense
charges 108,989 58,232 53,772 26,793 68,251 37,368
Net Investment
Income
(Loss) 770,144 245,491 89,965 203,015 442,842 139,327
Gain (Loss) on Investments:
Net realized
gain (loss) 322,951 109,208 97,135 48,556 (10,308) 60,312
Net change in
unrealized apprec.
(deprec.) (606,150) 432,569 (7,394) 5,006 (917,341) 247,977
Net Gain
(Loss) (283,199) 541,777 89,741 53,562 (927,649) 308,289
Increase (Decrease)
in Net Assets from
Operations 486,945 787,268 179,706 256,577 (484,807) 447,616
Contract Owner Transactions:
Proceeds from
units sold 4,982,891 2,588,339 2,234,640 2,070,415 4,401,980 2,479,819
Cost of units
redeemed (1,599,206) (462,750) (646,319) (137,709) (2,746,498) (518,646)
Increase
(Decrease) 3,383,685 2,125,589 1,588,321 1,932,706 1,655,482 1,961,173
Net increase
(decrease) 3,870,630 2,912,857 1,768,027 2,189,283 1,170,675 2,408,789
Net assets,
beginning 6,178,542 3,265,685 3,168,747 979,464 4,486,791 2,078,002
Net assets,
ending $10,049,172 $6,178,542 $ 4,936,774 $ 3,168,747 $ 5,657,466 $4,486,791
========== ========= ========== ========== ========== =========
Units
sold 611,674 355,209 307,808 318,153 557,621 337,319
Units
redeemed (200,364) (63,509) (91,606) (20,857) (364,514) (70,840)
Net increase
(decrease) 411,310 291,700 216,202 297,296 193,107 266,479
Units outstanding,
beginning 791,101 499,401 459,162 161,866 577,023 310,544
Units outstanding,
ending 1,202,411 791,101 675,364 459,162 770,130 577,023
========= ======== ======== ======== ======== ========
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)
for the years ended December 31, 1998 and 1997
Fidelity
---------------------------------------------------------------------
Growth Overseas Asset Manager
---------------------- ---------------------- ---------------------
1998 1997 1998 1997 1998 1997
----------- --------- ---------- ---------- ---------- ---------
Operations:
Dividend
income $ 1,842,437 $ 325,488 $ 142,764 $ 92,988 $ 1,572,246 $ 763,196
Mortality
& expense
charges 206,604 137,514 25,494 18,503 200,732 108,982
Net Investment
Income
(Loss) 1,635,833 187,974 117,270 74,485 1,371,514 654,214
Gain (Loss) on Investments:
Net realized
gain (loss) 427,538 353,918 79,359 59,959 217,187 110,314
Net change in
unrealized apprec.
(deprec.) 3,461,307 1,595,384 2,162 (37,531) 471,447 703,669
Net Gain
(Loss) 3,888,845 1,949,302 81,521 22,428 688,634 813,983
Increase (Decrease)
in Net Assets from
Operations 5,524,678 2,137,276 198,791 96,913 2,060,148 1,468,197
Contract Owner Transactions:
Proceeds from
units sold 5,185,245 3,826,538 756,543 1,120,040 8,266,842 5,181,615
Cost of units
redeemed (1,641,184)(1,640,979) (830,067) (330,480) (2,213,570) (611,357)
Increase
(Decrease) 3,544,061 2,185,559 (73,524) 789,560 6,053,272 4,570,258
Net increase
(decrease) 9,068,739 4,322,835 125,267 886,473 8,113,420 6,038,455
Net assets,
beginning 12,936,642 8,613,807 1,948,811 1,062,338 12,030,222 5,991,767
Net assets,
ending $22,005,381 $12,936,642 $2,074,078 $ 1,948,811 $20,143,642 $12,030,222
========== ========== ========= ========== ========== ==========
Units sold 485,596 456,931 104,305 169,260 1,026,078 730,254
Units
redeemed (158,611) (195,006) (117,437) (50,539) (276,830) (87,170)
Net increase
(decrease) 326,985 261,925 (13,132) 118,721 749,248 643,084
Units outstanding,
beginning 1,393,042 1,131,117 297,195 178,474 1,581,639 938,555
Units outstanding,
ending 1,720,027 1,393,042 284,063 297,195 2,330,887 1,581,639
========= ========= ======== ======== ========= =========
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)
for the years ended December 31, 1998 and 1997
Fidelity
---------------------------------------------------------------------
Index 500 Equity-Income Contrafund
---------------------- ---------------------- ---------------------
1998 1997 1998 1997 1998 1997
----------- --------- ---------- ---------- ---------- ---------
Operations:
Dividend
income $ 814,461 $ 256,760 $ 664,739 $ 616,205 $ 697,183 $ 205,387
Mortality
& expense
charges 343,886 166,249 156,072 96,237 182,321 111,873
Net Investment
Income (Loss) 470,575 90,511 508,667 519,968 514,862 93,514
Gain (Loss) on Investments:
Net realized
gain (loss) 1,474,939 562,621 567,528 240,521 1,280,300 399,353
Net change in
unrealized apprec.
(deprec.) 4,619,318 2,607,904 50,335 958,013 2,159,171 1,242,165
Net Gain
(Loss) 6,094,257 3,170,525 617,863 1,198,534 3,439,471 1,641,518
Increase (Decrease)
in Net Assets from
Operations 6,564,832 3,261,036 1,126,530 1,718,502 3,954,333 1,735,032
Contract Owner Transactions:
Proceeds from
units sold 13,056,130 11,227,689 5,870,283 4,399,847 7,869,755 4,689,385
Cost of units
redeemed (3,697,910)(1,357,807) (2,760,862) (1,672,256) (4,074,484)(1,044,864)
Increase
(Decrease) 9,358,220 9,869,882 3,109,421 2,727,591 3,795,271 3,644,521
Net increase
(decrease) 15,923,052 13,130,918 4,235,951 4,446,093 7,749,604 5,379,553
Net assets,
beginning 19,854,895 6,723,977 10,124,985 5,678,892 11,602,769 6,223,216
Net assets,
ending $35,777,947 19,854,895 $14,360,936 $10,124,985 $19,352,373 11,602,769
========== ========== ========== ========== ========== ==========
Units
sold 1,085,169 1,160,180 649,952 562,867 810,584 577,185
Units
redeemed (310,362) (138,613) (309,770) (218,107) (418,460) (128,422)
Net increase
(decrease) 774,807 1,021,567 340,182 344,760 392,124 448,763
Units outstanding,
beginning 1,836,589 815,022 1,186,973 842,213 1,310,234 861,471
Units outstanding,
ending 2,611,396 1,836,589 1,527,155 1,186,973 1,702,358 1,310,234
========= ========= ========= ========= ========= =========
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 (continued)
for the years ended December 31, 1998 and 1997
American Century Alger
---------------------------------------------- --------------------
VP Capital Appreciation VP International American Growth
---------------------- ---------------------- --------------------
1998 1997 1998 1997 1998 1997
----------- --------- ---------- ---------- ---------- --------
Operations:
Dividend
income $ 92,912 $ 44,016 $ 181,658 $ 37,999 $ 3,072,584 $ 102,249
Mortality
& expense
charges 21,662 26,083 41,802 23,017 254,268 148,455
Net Investment
Income (Loss) 71,250 17,933 139,856 14,982 2,818,316 (46,206)
Gain (Loss) on Investments:
Net realized
gain (loss) (101,739) (174,225) 162,714 230,824 680,021 450,958
Net change in
unrealized apprec.
(deprec.) (43,514) 68,744 122,644 (68,911) 4,762,625 1,888,668
Net Gain
(Loss) (145,253) (105,481) 285,358 161,913 5,442,646 2,339,626
Increase (Decrease)
in Net Assets from
Operations (74,003) (87,548) 425,214 176,895 8,260,962 2,293,420
Contract Owner Transactions:
Proceeds from
units sold 1,091,925 1,217,666 3,269,485 2,459,408 9,575,643 5,486,477
Cost of units
redeemed (1,106,351)(1,579,609) (2,526,974) (880,556) (2,206,578)(1,632,203)
Increase
(Decrease) (14,426) (361,943) 742,511 1,578,852 7,369,065 3,854,274
Net increase
(decrease) (88,429) (449,491) 1,167,725 1,755,747 15,630,027 6,147,694
Net assets,
beginning 1,830,373 2,279,864 2,635,254 879,507 14,588,275 8,440,581
Net assets,
ending $ 1,741,944 $1,830,373 $ 3,802,979 $ 2,635,254 $30,218,302 $14,588,275
========== ========= ========== ========== ========== ==========
Units sold 190,371 199,521 410,293 350,320 954,844 715,079
Units
redeemed (195,062) (258,864) (324,496) (124,281) (227,098) (222,982)
Net increase
(decrease) (4,691) (59,343) 85,797 226,039 727,746 492,097
Units outstanding,
beginning 312,676 372,019 371,156 145,117 1,748,167 1,256,070
Units outstanding,
ending 307,985 312,676 456,953 371,156 2,475,913 1,748,167
======== ======== ======== ======== ========== ==========
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
AUL American Individual Unit Trust
Statements of Operations and Changes in Net Assets (continued)
for the years ended December 31, 1998 and 1997
Calvert T Rowe Price PBHG
---------------------- ---------------------- ---------------------
Social Mid-Cap Growth Equity Income Growth II
---------------------- ---------------------- ---------------------
1998 1997 1998 1997 1998 1997(1)
----------- --------- ---------- ---------- ---------- ---------
Operations:
Dividend
income $ 416,178 $ 193,311 $ 1,359,994 $ 929,965 $ 0 $ 0
Mortality
& expense
charges 32,182 18,586 305,219 166,855 8,979 2,506
Net Investment
Income (Loss) 383,996 174,725 1,054,775 763,110 (8,979) (2,506)
Gain (Loss) on Investments:
Net realized
gain (loss) 74,290 48,471 1,282,361 465,118 55,548 (622)
Net change in
unrealized apprec.
(deprec.) 181,856 69,643 (650,236) 1,904,287 50,158 (18,592)
Net Gain
(Loss) 256,146 118,114 632,125 2,369,405 105,706 (19,214)
Increase (Decrease)
in Net Assets from
Operations 640,142 292,839 1,686,900 3,132,515 96,727 (21,720)
Contract Owner Transactions:
Proceeds from
units sold 1,432,540 495,600 10,967,080 10,649,296 974,556 1,474,635
Cost of units
redeemed (383,171) (260,165) (4,737,104) (1,346,727) (950,535) (931,283)
Increase
(Decrease) 1,049,369 235,435 6,229,976 9,302,569 24,021 543,352
Net increase
(decrease) 1,689,511 528,274 7,916,876 12,435,084 120,748 521,632
Net assets,
beginning 1,860,781 1,332,507 20,117,044 7,681,960 521,632 0
Net assets,
ending $ 3,550,292 $1,860,781 $28,033,920 $20,117,044 $ 642,380 $ 521,632
========== ========= ========== ========== ========== =========
Units sold 155,941 72,221 1,169,392 1,310,129 182,804 268,845
Units
redeemed (42,905) (43,129) (516,929) (165,014) (167,880) (170,964)
Net increase
(decrease) 113,036 29,092 652,463 1,145,115 14,924 97,881
Units outstanding,
beginning 231,353 202,261 2,226,491 1,081,376 97,881 0
Units outstanding,
ending 344,389 231,353 2,878,954 2,226,491 112,805 97,881
======== ======== ========== ========== ========== =========
(1) For the period from May 1, 1997 to December 31, 1997.
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
AUL American Individual Unit Trust
Statements of Operations and Changes in Net Assets
for the years ended December 31, 1998 and 1997
PBHG
------------------------
Tech. & Communications
------------------------
1998 1997(1)
------------ ----------
Operations:
Dividend
income $ 99 $ 0
Mortality
& expense
charges 7,423 2,123
Net Investment
Income (Loss) (7,324) (2,123)
Gain (Loss) on Investments:
Net realized
gain (loss) (41,887) 25,874
Net change in
unrealized apprec.
(deprec.) 260,146 (52,422)
Net Gain
(Loss) 218,259 (26,548)
Increase (Decrease)
in Net Assets from
Operations 210,935 (28,671)
Contract Owner Transactions:
Proceeds from
units sold 901,997 653,188
Cost of units
redeemed (394,761) (219,051)
Increase
(Decrease) 507,236 434,137
Net increase
(decrease) 718,171 405,466
Net assets,
beginning 405,466 0
Net assets,
ending $ 1,123,637 $ 405,466
========== =========
Units
sold 162,751 114,417
Units
redeemed (74,592) (35,869)
Net increase
(decrease) 88,159 78,548
Units outstanding,
beginning 78,548 0
Units outstanding,
ending 166,707 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.
13
<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 December
31, 1998 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 125% 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, 1998 and 1997 were $2,291,041 and $1,301,444,
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 35%, 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, 1998 and 1997 were $142,632 and
$81,617, 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. 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 85% 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
<PAGE>
Notes to Financial Statements (continued)
3. Accumulation Unit Value
The change in the Accumulation Unit Value per unit for the year ended December
31, 1998 is:
12/31/98 12/31/97 Change
-------- -------- ------
AUL American Series Fund:
Equity $ 9.435612 $ 8.902288 6.0%
Money Market 1.159621 1.118656 3.7%
Bond 6.800043 6.331288 7.4%
Managed 8.357465 7.809842 7.0%
Tactical 7.309123 6.900921 5.9%
Fidelity:
High Income 7.346048 7.775151 -5.5%
Growth 12.793102 9.286787 37.8%
Overseas 7.301225 6.557107 11.3%
Asset Manager 8.642178 7.606226 13.6%
Index 500 13.700933 10.811089 26.7%
Equity Income 9.403827 8.530417 10.2%
Contrafund 11.367786 8.855954 28.4%
American Century:
VP Capital
Appreciation 5.657448 5.855008 -3.4%
VP International 8.327111 7.100007 17.3%
Alger:
American Growth 12.203752 8.344870 46.2%
Calvert:
Social Mid-Cap
Growth 10.307229 8.041824 28.2%
T Rowe Price:
Equity Income 9.737388 9.040136 7.7%
PBHG:
Growth II 5.694833 5.330245 6.8%
Technology &
Communications 6.739634 5.161663 30.6%
4. Cost of Investments
The cost of investments at December 31, 1998, is:
AUL American Series Fund:
Equity $ 11,891,549
Money Market 9,281,509
Bond 6,470,184
Managed 10,041,907
Tactical 4,874,831
Fidelity:
High Income 6,188,819
Growth 16,439,402
Overseas 2,021,713
Asset Manager 18,450,949
Index 500 27,833,111
Equity Income 12,899,902
Contrafund 15,260,129
American Century:
VP Capital
Appreciation 1,900,323
VP International 3,649,978
Alger:
American Growth 23,128,733
Calvert:
Social Mid-Cap
Growth 3,254,325
T Rowe Price:
Equity Income 26,195,752
PBHG:
Growth II 610,814
Technology &
Communications 915,886
15
<PAGE>
Notes to Financial Statements (continued)
5. Net Assets
Net Assets at December 31, 1998, are:
AUL American Series Fund
---------------------------------------------------------------------
Equity Money Market Bond Managed Tact. Asset
-------------- ------------- ----------- ------------ -----------
Proceeds from
units sold $12,782,725 $67,909,101 $14,767,835 $10,718,461 $ 5,225,910
Cost of
units
redeemed (3,198,788) (59,104,779) (8,943,425) (2,233,721) (814,951)
Net investment
income (loss) 1,225,666 477,187 517,049 1,093,850 314,959
Net realized
gain (loss) 1,081,946 0 128,724 463,318 148,913
Unrealized appreciation
(depreciation) 154,775 0 (101,430) 7,264 61,943
$12,046,324 $ 9,281,509 $ 6,368,753 $10,049,172 $ 4,936,774
========== ========== ========== ========== ==========
Fidelity
------------------------------------------------------------------
High Income Growth Overseas Asset Mgr Index 500
------------ ------------ -------------- ------------ ------------
Proceeds from
units sold $ 9,005,686 $17,388,259 $ 3,054,819 $19,271,864 $30,465,802
Cost of units
redeemed (3,529,062) (3,917,553) (1,388,179) (3,298,903) (5,356,801)
Net investment
income (loss) 636,620 1,945,030 189,615 2,077,939 558,487
Net realized
gain (loss) 75,575 1,023,666 165,458 400,050 2,165,623
Unrealized appreciation
(depreciation) (531,353) 5,565,979 52,365 1,692,692 7,944,836
$ 5,657,466 $22,005,381 $ 2,074,078 $20,143,642 $35,777,947
========== ========== ========== ========== ==========
Fidelity American Century Alger
--------------------------- -------------------------- ----------
VP Capital VP American
Equity-Income Contrafund Appreciation Int'l Growth
------------- ------------ -------------- ------------ ------------
Proceeds from
units sold $15,753,571 $18,227,398 $ 4,855,394 $ 6,561,816 $23,428,897
Cost of units
redeemed (4,751,030) (5,310,772) (2,918,528) (3,481,614) (4,329,718)
Net investment
income (loss) 1,047,140 581,869 201,211 157,338 2,835,368
Net realized
gain (loss) 850,221 1,761,635 (237,754) 412,438 1,194,186
Unrealized appreciation
(depreciation) 1,461,034 4,092,243 (158,379) 153,001 7,089,569
$14,360,936 $19,352,373 $ 1,741,944 $ 3,802,979 $30,218,302
========== ========== ========== ========== ==========
Calvert T Rowe Price PBHG
------------- -------------- ----------------------------
Social Mid-Cap Technology &
Growth Equity Income Growth II Communications
-------------- ------------ -------------- --------------
Proceeds from
units sold $ 3,249,389 $28,750,441 $ 2,449,190 $ 1,555,156
Cost of units
redeemed (685,533) (6,383,984) (1,881,818) (613,812)
Net investment
income (loss) 559,156 1,953,037 (11,484) (9,447)
Net realized
gain (loss) 131,314 1,876,258 54,926 (16,012)
Unrealized appreciation
(depreciation) 295,966 1,838,168 31,566 207,752
$ 3,550,292 $28,033,920 $ 642,380 $ 1,123,637
========== ========== ========= ==========
15
<PAGE>
