Why should it? Pixels are pixels and 2D is 2D. AE doesn't care. Any perception of perspective will have to be achieved using other means like 3D tracking (which of course in your case probably won't work) and using 3D layers or animating the shape. And even then there may be extra work required, since realworld lenses are rarely just simple spherical lenses and distortions are more complex than just scaling on one axis, anyway.
You would Camera Track and parent a 3D layer to a null or you would Corner Pin Track and composite that way. These are basics. The answer is yes, you can do composite about anything you have ever seen in a commercial or movie in AE if you use the right procedures.
Not a circle, but for example:
In the future please just drag your sample images into the reply field on this forum. It couldn't be easier and we will spend less time trying to answer your questions.
Thank you Mylenium.
Also, thanks again Mr Gerard. Glad for the tip. Sorry about the picture; I selected the picture icon and entered the URL but I think it is better to embed the picture in the actual post the next time.