-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BXCb6SaNt0MqhWjY7GJC6g/oE6y2CL6CEbpjgCRtY420bkaIEyqXYVBt68Kyhmuk AAjtOnWpAv+d6fhpCtKWkg== /in/edgar/work/20000830/0000899243-00-002034/0000899243-00-002034.txt : 20000922 0000899243-00-002034.hdr.sgml : 20000922 ACCESSION NUMBER: 0000899243-00-002034 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000830 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LIFE INSURANCE SEPARATE ACCOUNT OF USAA LIFE INSURANCE CO CENTRAL INDEX KEY: 0001052863 STANDARD INDUSTRIAL CLASSIFICATION: [ ] IRS NUMBER: 741472662 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-08625 FILM NUMBER: 713556 BUSINESS ADDRESS: STREET 1: USAA BUILDING STREET 2: 9800 FREDERICKBURG RD CITY: SAN ANTONIO STATE: TX ZIP: 78288 BUSINESS PHONE: 2104980676 MAIL ADDRESS: STREET 1: USAA BUILDING STREET 2: 9800 FREDERICKSBURG RD CITY: SAN ANTONIO STATE: TX ZIP: 78288 N-30D 1 0001.txt LIFE INS SEP ACCT OF USAA LIFE VUL SEMIANNUAL RPT USAA LIFE INSURANCE COMPANY VARIABLE UNIVERSAL LIFE ============================== Semiannual Report June 30, 2000 [USAA LOGO APPEARS HERE] TABLE OF CONTENTS - -------------------------------------------------------------------------------- PRESIDENT'S MESSAGE...................................................... iii USAA LIFE VARIABLE UNIVERSAL LIFE INSURANCE SEPARATE ACCOUNT Overview of the Variable Universal Life Fund Accounts.................... A-2 USAA LIFE INVESTMENT TRUST USAA Life Fund Overviews................................................. B-3 Portfolios of Investments................................................ B-24 Notes to Portfolios of Investments....................................... B-43 Statements of Assets and Liabilities..................................... B-44 Statements of Operations................................................. B-45 Statements of Changes in Net Assets...................................... B-46 Notes to Financial Statements............................................ B-48 SCUDDER VARIABLE LIFE INVESTMENT FUND (VLIF) CAPITAL GROWTH PORTFOLIO Letter from the Fund's President......................................... C-2 Portfolio Management Discussion.......................................... C-3 Performance Update....................................................... C-4 Portfolio Summary........................................................ C-5 Investment Portfolio..................................................... C-6 Financial Statements..................................................... C-9 Financial Highlights..................................................... C-12 Notes to Financial Statements............................................ C-13 THE ALGER AMERICAN FUND ALGER AMERICAN GROWTH PORTFOLIO Schedule of Investments.................................................. D-4 Financial Highlights..................................................... D-6 Statement of Assets and Liabilities...................................... D-7 Statement of Operations.................................................. D-8 Statement of Changes in Net Assets....................................... D-9 Notes to Financial Statements............................................ D-10 This report is for the information of USAA Life Variable Universal Life policy owners. The USAA Life Variable Universal Life policy is distributed by USAA Investment Management Company, a registered broker dealer. TABLE OF CONTENTS, continued - -------------------------------------------------------------------------------- DEUTSCHE VIT EQUITY 500 INDEX Letter to Shareholders................................................... E-2 Schedule of Investments.................................................. E-5 Statement of Assets and Liabilities...................................... E-11 Statement of Operations.................................................. E-12 Statements of Changes in Net Assets...................................... E-13 Financial Highlights..................................................... E-14 Notes to Financial Statements............................................ E-15 DEUTSCHE VIT SMALL CAP INDEX Letter to Shareholders................................................... E-18 Schedule of Investments.................................................. E-21 Statement of Assets and Liabilities...................................... E-43 Statement of Operations.................................................. E-44 Statements of Changes in Net Assets...................................... E-45 Financial Highlights..................................................... E-46 Notes to Financial Statements............................................ E-47 DEUTSCHE VIT EAFE (R) Equity Index Letter to Shareholders................................................... E-50 Schedule of Investments.................................................. E-54 Statement of Assets and Liabilities...................................... E-63 Statement of Operations.................................................. E-64 Statements of Changes in Net Assets...................................... E-65 Financial Highlights..................................................... E-66 Notes to Financial Statements............................................ E-67 Deutsche Asset Management is the marketing name for the asset management activities of Deutsche Bank AG, Deutsche Fund Management, Inc., Bankers Trust Company, DB Alex Brown LLC, Deutsche Asset Management, Inc. and Deutsche Asset Management Investment Services Limited. Deutsche VIT Funds are not insured by the FDIC and are not deposits, obligations of or guaranteed by Deutsche Bank. USAA LIFE INSURANCE COMPANY VARIABLE UNIVERSAL LIFE SEMIANNUAL REPORT PRESIDENT'S MESSAGE FROM THE DESK OF JIM MIDDLETON Your Variable Universal Life* policy provides you with valuable life insurance protection. As an added bonus, your policy offers the potential for future financial growth. I am pleased to provide you with this mid-year overview of our Variable Universal Life's policy performance and accumulation unit values, as well as USAA Life Investment Trust reports. Please take a moment to review your policy and selected investment asset mix to ensure it matches your personal investment and payment strategy. Variable Universal Life is purchased because a long-term need for life insurance has been identified. Sometimes its advantages - tax-deferred accumulation and tax-free access to your cash value - are forgotten. Are you making the most of this valuable policy to assist you in later years? Have you maximized its potential? When it comes to Variable Universal Life, here are some things to consider: . Make use of your policy's flexibility by increasing the amount of money you are investing. This could prevent your policy from lapsing when you need it most. . By adding money to your policy, you'll make optimum use of its valuable tax-deferral feature. . The more you invest in your policy now, the more you will have prepared for your retirement and estate planning goals. Remember: One of the best ways to plan for retirement is to diversify your portfolio. See page A-2 of this report for accumulation unit values and an overview of the historical performance of your funds. If you would like to discuss your personal financial goals, or learn more about payment strategies, please call us at 1-800-531-4265 (456-9061 in San Antonio). You may also access information about the value of your contract and the performance of your investment options 24 hours a day, seven days a week by simply calling the toll-free USAA Touchline(R) at 1-800-531-5433. Sincerely, /s/ James M. Middleton - --------------------------------------- James M. Middleton, Col., USAF, (Ret.) President & CEO USAA Life Insurance Company *Known in some states as Flexible Premium Variable Life. .USAA Life's Variable Universal Life is distributed by USAA Investment Management Company, a registered broker dealer. . The Variable Universal Life insurance policy is subject to surrender charges and possible tax consequences. . This material should be preceded by a USAA Life Variable Universal Life prospectus. . The Variable Universal Life insurance product is subject to market risk, including potential fluctuations in investment return and the potential loss of principal. . A 10% federal penalty tax may apply to withdrawals made before age 59 1/2. --------- iii USAA LIFE VARIABLE UNIVERSAL LIFE INSURANCE SEPARATE ACCOUNT ========================================== SEMIANNUAL REPORT June 30, 2000 LOGO OF USAA APPEARS HERE] VARIABLE UNIVERSAL LIFE INSURANCE SEPARATE ACCOUNT OF USAA LIFE INSURANCE COMPANY - -------------------------------------------------------------------------------- AN OVERVIEW - -------------------------------------------------------------------------------- June 30, 2000 - --------------------------------------------------------------------------------
AUV AVERAGE ACCUMULATION ANNUAL TOTAL RETURN UNIT VALUE SINCE FUND ACCOUNT OBJECTIVE (AUV) ONE YEAR INCEPTION - ------------------------------------------------------------------------------------------------------------------------------------ USAA LIFE Seeks the highest level of current income consistent $1.26 3.47% 2.97% MONEY MARKET with preservation of capital and maintenance of liquidity (7-day yield is 5.13%) - ------------------------------------------------------------------------------------------------------------------------------------ USAA LIFE INCOME Seeks maximum current income without undue risk to principal $13.89 1.10% -0.98% - ------------------------------------------------------------------------------------------------------------------------------------ USAA LIFE GROWTH Seeks capital growth and current income $23.66 -1.52% 18.54% AND INCOME - ------------------------------------------------------------------------------------------------------------------------------------ USAA LIFE Seeks long-term capital appreciation $23.82 20.04% 27.22% WORLD GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ USAA LIFE Seeks long-term capital growth, consistent with preservation $19.64 -1.89% 10.36% DIVERSIFIED ASSETS of capital and balanced by current income - ------------------------------------------------------------------------------------------------------------------------------------ USAA LIFE Seeks appreciation of capital $28.33 59.69% 80.25% AGGRESSIVE GROWTH - ------------------------------------------------------------------------------------------------------------------------------------ USAA LIFE Seeks capital appreciation with current income as a secondary $13.24 18.98% 19.78% INTERNATIONAL objective - ------------------------------------------------------------------------------------------------------------------------------------ SCUDDER VLIF CAPITAL Seeks to maximize long-term capital growth $33.80 23.91% 36.88% GROWTH PORTFOLIO - ------------------------------------------------------------------------------------------------------------------------------------ ALGER AMERICAN Seeks long-term capital appreciation $36.69 17.50% 39.55% GROWTH PORTFOLIO - ------------------------------------------------------------------------------------------------------------------------------------ DEUTSCHE VIT Seeks to match as closely as possible the performance of the $13.04 5.28% 24.33% EQUITY 500 INDEX S&P 500 Index, before the deduction of Fund expenses - ------------------------------------------------------------------------------------------------------------------------------------ DEUTSCHE VIT Seeks to match as closely as possible the performance of the $10.73 12.08% 24.26% SMALL CAP INDEX Russell 2000 Small Stock Index before the deduction of Fund expenses - ------------------------------------------------------------------------------------------------------------------------------------ DEUTSCHE VIT Seeks to match as closely as possible the performance of the $12.36 13.62% 18.00% EAFE(R) EQUITY INDEX Morgan Stanley Capital International Europe Australia Far East (EAFE(R)) Index before the deduction of Fund expenses - ------------------------------------------------------------------------------------------------------------------------------------
THE PERFORMANCE OF THE USAA LIFE AGGRESSIVE GROWTH FUND ACCOUNT AND THE DEUTSCHE VIT SMALL CAP INDEX FUND ACCOUNT WILL REFLECT THE VOLATILITY OF INVESTMENTS IN SMALL CAP STOCKS AND INITIAL PUBLIC OFFERINGS. The 7-day yield more closely reflects the current earnings of the fund account than the total return. An investment in the USAA Life Money Market Fund Account is not insured or guaranteed by the F.D.I.C. or any other government agency. Although the fund seeks to preserve a stable value at $1 per share, it is possible to lose money by investing in the fund account. The 7-day yield reflects the 7-day period ended June 30, 2000. Foreign investing is subject to additional risks, such as currency fluctuations, market illiquidity, and political instability. The performance data quoted represent past performance and do not represent the actual experience of amounts invested by a particular owner. Past performance is not a guarantee of future results. The variable insurance products are subject to market risk, including potential fluctuations in investment return and the potential loss of principal. . Inception date for all variable fund accounts for Variable Universal Life is 8/31/98 when sale of USAA Life's Variable Universal Life insurance policy began. Since inception performance numbers reflect experience since USAA Life began selling the product. All data reflects the actual performance of the underlying funds in which the Life Insurance Separate Account invests, adjusted to reflect a deduction of the M&E risk charge and $5 monthly maintenance charge. M&E charges total 0.75% on an annual basis. THE PERFORMANCE FIGURES ABOVE DO NOT REFLECT THE COST OF INSURANCE PROTECTION AND OTHER INSURANCE POLICY FEES AND, IF THEY DID, THE PERFORMANCE QUOTED ABOVE WOULD BE SIGNIFICANTLY LOWER. INVESTORS SHOULD ASK FOR A PERSONAL ILLUSTRATION THAT SHOWS THE EFFECT ON PERFORMANCE OF THE COST OF INSURANCE, OTHER CHARGES, AND OTHER VARIABLES. . Because accumulation units are part of an insurance policy, actual performance should always be considered in conjunction with the policy's fees, cash value, and death benefit. . This product is not yet available in all states. This product is known in some states as Flexible Premium Variable Life. --------- A-2 -----END PRIVACY-ENHANCED MESSAGE-----