<PAGE>
[STYLE SELECT SERIES(SM) LOGO]
SEMIANNUAL REPORT
APRIL 30, 1997
[Artwork of [Artwork of [Artwork of
Woman with Human Heads Men with
Tree] with Shapes] Globe]
AGRESSIVE GROWTH PORTFOLIO VALUE PORTFOLIO INTERNATIONAL EQUITY PORTFOLIO
MID-CAP GROWTH PORTFOLIO
<PAGE>
1
[STYLE SELECT SERIES(SM) LOGO]
A Message From The President
- --------------------------------------------------------------------------------
May 30, 1997
Dear Shareholder:
In November 1996, SunAmerica Asset Management took a leadership role in
the quest to offer mutual funds that adopt an institutional approach to asset
allocation and style-based investment management.
As you are already aware, each of the Style Select Series portfolios is
intended to provide you with access to several well-respected professional
investment advisers, each seeking the same investment objective and utilizing a
similar investment style. As a result of the discipline employed in managing
these portfolios, investors may enjoy more accuracy and predictability in
executing their asset allocation decisions.
The goal of combining three investment advisers in each portfolio is to
further diversify within a style--the potential result is more consistent
returns and lower risk than a single-managed mutual fund. While the risks
associated with equity market investing cannot be eliminated completely, a
prudent long-term strategy employing adequate portfolio diversification and
dollar cost averaging can assist you in meeting your financial goals.
One of the three advisers from each respective Style Select Series
portfolio has been asked to discuss their investment style and the market
strategy employed during the past six months. In this, our first Semiannual
Report, Scott Schoelzel of JANUS for the Aggressive Growth Portfolio, Arden
Armstrong of MILLER ANDERSON & SHERRERD for the Mid-Cap Growth Portfolio,
Christopher Davis of DAVIS SELECTED ADVISERS for the Value Portfolio and Richard
King of WARBURG PINCUS for the International Equity Portfolio are the portfolio
managers who shared with us their investment process and strategy. You will hear
from other managers of the Style Select Series portfolios in future reports.
We are pleased you have invested in the Style Select Series portfolios to
assist you in meeting your financial goals. All of us at SunAmerica Asset
Management, working with your financial professional, look forward to continuing
to serve your investment needs now and in the future.
Sincerely,
/s/ Peter A. Harbeck
Peter A. Harbeck
President
<PAGE>
2
[STYLE SELECT SERIES(SM) LOGO]
Portfolio Manager Commentary
- --------------------------------------------------------------------------------
[JANUS LOGO]
Scott W. Schoelzel, Portfolio Manager
AGGRESSIVE GROWTH PORTFOLIO
Janus is primarily a 'bottom-up' stock picker, looking at the individual
characteristics of a potential company as opposed to making a broadly
disseminated, top-down investment decision based on an assessment of the overall
market. Generally speaking, the companies in the portfolio will come from
several broad industries including, but not limited to, telecommunications,
technology, health care, bio-technology and financial services. About 80% of the
investments going forward will probably be in one of these categories. In terms
of constructing the portfolio, one portion invests in companies with impressive
professional management teams, multiple product lines and in most cases, global
franchises and distributions systems. Some of these companies might include
Microsoft, Citicorp Pfizer and Gillette. Another focus of the portfolio is
companies that are more niche oriented and are experiencing faster earnings
growth. These companies generally offer greater potential for returns, but also
experience higher volatility. Companies in this group might include Oxford
Health Plan, which is a New York based HMO; PeopleSoft, which is a client server
applications software company; Dell Computer, which is a high volume
manufacturer of PCs and Veritas, which is a software company that makes a data
storage system which is used in conjunction with Windows N. Each one of these
companies has a tremendous opportunity in front of them and we expect they will
be good stocks for the portfolio for years to come. We are confident that over
the next few years this growth strategy will continue to provide investors with
competitive returns. We appreciate your confidence and interest in the fund and
look forward to continuing to serve as one of the Style Select
Series--Aggressive Growth Portfolio managers.
[MILLER ANDERSON & SHERRERD, LLP LOGO]
Arden C. Armstrong, Portfolio Manager
MID-CAP GROWTH PORTFOLIO
At MAS, we buy mid-cap stocks with strong growth prospects and positive
earnings estimates. We have a four-part process that we use to select stocks.
First, we employ a quantitative framework, looking at analysts' earning estimate
revisions and at percent change in earnings over the last three and five months.
Research has shown that over the last ten years there has been a 15% spread in
performance between the best and worst earnings estimate revisions. Therefore,
the first part of the process is a quantitative screen. However, the
quantitative process provides the basic framework to the fundamental research
that follows. This is the second part of our process. We believe this screening
can help us to generate better results because we use it as a tool to improve
the productivity of our fundamental analysis. Then, we look at the financials,
the quality of management and the strategic position of the company within its
respective industry. In the
<PAGE>
3
[STYLE SELECT SERIES(SM) LOGO]
Portfolio Manager Commentary
- --------------------------------------------------------------------------------
third stage of our investment process we use valuation as a trading tool to
attempt to identify entry and exit points into our stock positions. We attempt
to invest in companies when they are less expensive and we reduce these
positions when they are more expensive than we believe they ought to be. The
final component of the investment process is our selling discipline. We will
sell stocks for a number of reasons such as, negative estimate revision trends
or if we are uncomfortable with the fundamentals and market valuation. We
perform our own fundamental research on companies before we buy them and we use
valuation as a trading tool to enforce our strict selling discipline.
Market performance during the prior period has been influenced by Federal
Reserve action and concern for the strength of the economy. We have experienced
some significant volatility and our preference, during the first few months of
the year, was to sell on strength and to be very picky about buying stocks on
extreme weakness. We believe this has changed over the last several weeks, where
we are now less interested in selling on strength and more interested in seeking
opportunities to buy. This is definitely the time to take advantage of these
growth opportunities. We appreciate your confidence and interest in the fund and
look forward to continuing to serve as one of the Style Select Series--Mid-Cap
Growth Portfolio managers.
[LOGO]
Christopher C. Davis, Portfolio Manager
VALUE PORTFOLIO
With the Dow Jones Industrial Average today around 7,000, we believe this
is an ideal time to review our investment philosophy, research process and price
discipline. While we develop broad investment themes and strategies, we evaluate
risk on a company-by-company basis. Experience has taught us that good companies
can prosper in sectors that lag, while badly managed companies often perform
poorly even in sectors that are performing well. Finding the appropriate
companies for investment is always a challenge, but we meet that challenge
through the application of traditional research--meeting with company
management, analyzing financial statements, reviewing regulatory documents and
studying changes in the business world. Above all, we sit down with the people
running the companies to discuss the fundamental dynamics of their business.
Essential to our thinking is that the goal of research is to separate the
company managements who are the 'bluffers' from those who are 'doers'. Once we
find the businesses that meet our criteria, we focus on avoiding the second
risk--the danger of paying too much for them. In fact, as 'value' investors, we
want to buy the stocks of these businesses which are worth more than their
current price. Many investors in the current market seem to believe that the
higher a stock rises, the more attractive it becomes. Our strategy is to stick
with a discipline that tells us how much we can reasonably pay for a stock.
We view financial companies as 'growth stocks in disguise' because of
their potential for growth and relatively low price/earnings multiples. They are
the beneficiaries of two long-term trends: the aging of America's baby-boomers
and the expansion of financial services around the world. Among the financial
companies, American Express is one of our favorites. The company
<PAGE>
4
[STYLE SELECT SERIES(SM) LOGO]
Portfolio Manager Commentary
- --------------------------------------------------------------------------------
benefits as credit card usage as a percentage of consumer spending continues to
grow at 15-20% per year. It is more conservatively positioned in an economic
downturn than its competitors since it lacks a substantial loan portfolio. In
the technology industry we see value and long-term growth potential. We
particularly like Intel and IBM. Intel is the dominant maker of micro-processors
with 80% of the world's market share. Its earnings are likely to continue to be
fueled by the dramatic growth in the use of computers by businesses and
individuals. IBM is effective at leveraging its relationships with large global
companies to provide them with complete technology solutions. Among our
favorites in the oil industry is Halliburton. This company benefits as large oil
companies outsource more functions. We remain confident that our 'all-weather'
investment approach will continue to serve us well, and we look forward to
continuing to serve as one of the Style Select Series--Value Portfolio managers.
[WARBURG PINCUS LOGO]
Richard H. King, Portfolio Manager
INTERNATIONAL EQUITY PORTFOLIO
Warburg Pincus aims to tap into the strong growth potential of today's
world stock markets by investing primarily in a diversified selection of
companies whose principal business activities and interests are outside the U.S.
We believe the best way to value a company is from a businessman's perspective,
determining what we call intrinsic value but essentially trying to discover what
a company is worth over the course of an investment cycle. Under researched
stocks with low institutional ownership tend to be undervalued, and our approach
focuses on patience and an early recognition of secular change. It is not
difficult to find situations outside of the U.S. where companies or industries
are changing or emerging for the first time. One example is the opportunity to
invest in financial service companies benefiting from the economic restructuring
that exists in many emerging markets. Currently the portfolio is invested in
over 20 countries. Europe, our largest weighting, offers many attractively
valued companies, currently focused on the UK, France, Germany and Switzerland.
The second largest weighting is the Far East, with the highest concentration in
Japan. We also maintain a small exposure in Latin America. Moving forward, we
will maintain our emphasis on growth opportunities throughout Asia. Heavy
country allocations in Taiwan and Hong Kong at year-end, in our opinion, reached
fair value and we have been paring back weightings in both markets. On the other
hand, attractive opportunities exist in Thailand and South Korea during the
remainder of 1997. We will continue to monitor and look to increase our
weightings as opportunities present themselves. We appreciate your confidence
and interest in the fund and look forward to continuing to serve as one of the
Style Select Series--International Equity Portfolio managers.
The opinions expressed throughout the above discussions are not predictive of or
do not guarantee future performance results. For more information, including a
prospectus, please contact your financial professional or SunAmerica Mutual
Funds at (800)858-8850, ext. 5125. Please read the prospectus carefully,
including the information on charges and expenses, before you invest.
<PAGE>
1
[STYLE SELECT SERIES(SM) LOGO]
STATEMENT OF ASSETS AND LIABILITIES -- April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
AGGRESSIVE MID-CAP INTERNATIONAL
GROWTH GROWTH VALUE EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at value (identified cost
$42,533,592; $34,071,753; $54,534,507 and
$33,151,969, respectively)...................... $42,931,330 $31,946,118 $56,716,131 $ 32,848,094
Short-term securities (cost equals market)........ 5,282,749 5,392,183 5,917,000 706,000
Repurchase agreements (cost equals market)........ 4,204,000 -- 665,000 3,469,000
Cash.............................................. 18,837 606 2,578 1,152
Foreign cash...................................... -- -- -- 109,165
Receivable for fund shares sold................... 785,927 840,913 1,281,173 972,187
Receivable for investments sold................... 638,839 36,684 -- 265,490
Other assets...................................... 43,675 43,675 43,675 43,675
Interest and dividends receivable................. 25,550 5,049 47,731 149,192
Deferred organizational expenses.................. 20,019 20,019 20,019 20,019
Receivable from investment adviser................ 10,733 12,215 13,967 12,421
Foreign currency contracts........................ -- -- -- 365,948
Unrealized appreciation of foreign currency
contracts....................................... -- -- -- 95,395
----------- ----------- ----------- ------------
Total assets.................................... 53,961,659 38,297,462 64,707,274 39,057,738
----------- ----------- ----------- ------------
LIABILITIES:
Payable for investments purchased................. 2,679,087 754,571 1,353,760 321,629
Investment advisory and management
fees payable.................................... 38,425 28,264 45,670 32,101
Payable for fund shares repurchased............... 35,323 14,237 35,060 55,385
Other accrued expenses............................ 24,598 22,115 37,504 40,816
Distribution and service maintenance fees
payable......................................... 22,701 17,408 28,219 17,217
Foreign currency contracts........................ -- -- -- 367,361
Unrealized depreciation of foreign currency
contracts....................................... -- -- -- 10,444
----------- ----------- ----------- ------------
Total liabilities............................... 2,800,134 836,595 1,500,213 844,953
----------- ----------- ----------- ------------
Net assets.................................... $51,161,525 $37,460,867 $63,207,061 $ 38,212,785
----------- ----------- ----------- ------------
----------- ----------- ----------- ------------
</TABLE>
<PAGE>
2
[STYLE SELECT SERIES(SM) LOGO]
STATEMENT OF ASSETS AND LIABILITIES -- April 30, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
AGGRESSIVE MID-CAP INTERNATIONAL
GROWTH GROWTH VALUE EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSETS WERE COMPOSED OF:
Common Stock, $.0001 par value (1 billion shares
authorized)..................................... $ 409 $ 340 $ 467 $ 306
Paid-in capital................................... 52,418,220 41,347,283 60,880,139 38,314,376
----------- ----------- ----------- ------------
52,418,629 41,347,623 60,880,606 38,314,682
Accumulated undistributed net investment income
gain (loss)..................................... (62,301) (144,086) (10,719) 38,459
Accumulated undistributed net realized gain (loss)
on investments, foreign currency, options and
other assets and liabilities.................... (1,592,541) (1,617,035) 155,550 79,148
Net unrealized appreciation (depreciation) of
investments..................................... 397,738 (2,125,635) 2,181,624 (303,875)
Net unrealized appreciation of foreign currency,
other assets and liabilities.................... -- -- -- 84,371
----------- ----------- ----------- ------------
Net assets.................................... $51,161,525 $37,460,867 $63,207,061 $ 38,212,785
----------- ----------- ----------- ------------
----------- ----------- ----------- ------------
CLASS A:
Net assets........................................ $31,277,613 $21,054,557 $35,690,592 $ 22,994,862
Shares outstanding................................ 2,499,347 1,910,365 2,636,181 1,841,936
Net asset value and redemption price per share.... $ 12.51 $ 11.02 $ 13.54 $ 12.48
Maximum sales charge (5.75% of offering price).... 0.76 0.67 0.83 0.76
----------- ----------- ----------- ------------
Maximum offering price to public.................. $ 13.27 $ 11.69 $ 14.37 $ 13.24
----------- ----------- ----------- ------------
----------- ----------- ----------- ------------
CLASS B:
Net assets........................................ $18,722,750 $15,551,069 $25,641,412 $ 14,123,293
Shares outstanding................................ 1,500,130 1,415,269 1,898,972 1,134,927
Net asset value, offering and redemption price per
share (excluding any applicable contingent
deferred sales charge).......................... $ 12.48 $ 10.99 $ 13.50 $ 12.44
----------- ----------- ----------- ------------
----------- ----------- ----------- ------------
CLASS C:
Net assets........................................ $ 1,161,162 $ 855,241 $ 1,875,057 $ 1,094,630
Shares outstanding................................ 92,971 77,837 138,863 87,909
Net asset value, offering and redemption price per
share (excluding any applicable contingent
deferred sales charge).......................... $ 12.49 $ 10.99 $ 13.50 $ 12.45
----------- ----------- ----------- ------------
----------- ----------- ----------- ------------
</TABLE>
See Notes to Financial Statements
<PAGE>
3
[STYLE SELECT SERIES(SM) LOGO]
STATEMENT OF OPERATIONS -- For the period ended April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
AGGRESSIVE MID-CAP INTERNATIONAL
GROWTH GROWTH VALUE EQUITY
PORTFOLIO# PORTFOLIO# PORTFOLIO# PORTFOLIO#
--------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Income:
Interest........................................ $ 180,976 $ 76,076 $ 88,163 $ 80,390
Dividends*...................................... 53,152 22,603 213,423 228,370
----------- ----------- ----------- ------------
Total investment income....................... 234,128 98,679 301,586 308,760
----------- ----------- ----------- ------------
Expenses:
Investment advisory and management fees......... 143,475 117,215 149,345 129,340
Distribution and service maintenance fees
Class A....................................... 37,389 30,228 36,898 31,730
Class B....................................... 35,542 30,089 42,405 26,171
Class C....................................... 1,108 761 1,518 753
Transfer agent fees and expenses
Class A....................................... 29,911 24,182 28,377 24,742
Class B....................................... 9,952 8,426 11,545 7,466
Class C....................................... 310 213 410 218
Registration fees
Class A....................................... 14,465 14,010 18,268 16,013
Class B....................................... 10,261 10,720 13,518 11,143
Class C....................................... 2,341 2,357 2,524 2,380
Custodian fees and expenses..................... 24,391 19,927 25,100 42,347
Audit and tax consulting fees................... 14,670 12,225 14,670 13,820
Printing expense................................ 5,705 7,335 7,335 7,335
Legal fees and expenses......................... 2,445 2,445 2,445 2,445
Directors' fees and expenses.................... 1,182 1,136 1,080 1,064
Amortization of organizational expenses......... 480 480 480 480
Miscellaneous expenses.......................... 815 815 1,160 815
----------- ----------- ----------- ------------
Total expenses................................ 334,442 282,564 357,078 318,262
Less: expenses waived/reimbursed by investment
adviser..................................... (38,013) (39,799) (44,773) (47,961)
----------- ----------- ----------- ------------
Net expenses.................................. 296,429 242,765 312,305 270,301
----------- ----------- ----------- ------------
Net investment income gain (loss)................. (62,301) (144,086) (10,719) 38,459
----------- ----------- ----------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss) on investments........... (1,592,541) (1,616,501) 155,550 56,452
Net realized loss on options contracts............ -- -- -- (2,351)
Net realized gain (loss) on foreign currency and
other assets and liabilities.................... -- (534) -- 25,047
Net change in unrealized appreciation/depreciation
of investments.................................. 397,738 (2,125,635) 2,181,624 (303,875)
Net change in unrealized appreciation/depreciation
of foreign currency and other assets and
liabilities..................................... -- -- -- 84,371
----------- ----------- ----------- ------------
Net realized and unrealized gain (loss) on
investments, foreign currency and other assets
and liabilities................................. (1,194,803) (3,742,670) 2,337,174 (140,356)
----------- ----------- ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS: $(1,257,104) $(3,886,756) $ 2,326,455 $ (101,897)
----------- ----------- ----------- ------------
----------- ----------- ----------- ------------
*Net of foreign withholding taxes on dividends
of.............................................. $ 209 $ 27 $ 2,470 $ 27,741
----------- ----------- ----------- ------------
----------- ----------- ----------- ------------
</TABLE>
- ------------------
# Commenced operations November 19, 1996
See Notes to Financial Statements
<PAGE>
4
[STYLE SELECT SERIES(SM) LOGO]
STATEMENT OF CHANGES IN NET ASSETS -- For the period ended April 30,
1997 -- (unaudited)
<TABLE>
<CAPTION>
AGGRESSIVE MID-CAP INTERNATIONAL
GROWTH GROWTH VALUE EQUITY
PORTFOLIO# PORTFOLIO# PORTFOLIO# PORTFOLIO#
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS:
OPERATIONS:
Net investment income gain (loss)............... $ (62,301) $ (144,086) $ (10,719) $ 38,459
Net realized gain (loss) on investments......... (1,592,541) (1,616,501) 155,550 56,452
Net realized loss on options contracts.......... -- -- -- (2,351)
Net realized gain (loss) on foreign currency and
other assets and liabilities.................. -- (534) -- 25,047
Net change in unrealized
appreciation/depreciation of investments...... 397,738 (2,125,635) 2,181,624 (303,875)
Net change in unrealized
appreciation/depreciation of foreign currency
and other assets and liabilities.............. -- -- -- 84,371
-------------- -------------- -------------- --------------
Net increase (decrease) in net assets resulting
from operations............................... (1,257,104) (3,886,756) 2,326,455 (101,897)
-------------- -------------- -------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM FUND
SHARE TRANSACTIONS (NOTE 7)..................... 52,393,629 41,322,623 60,855,606 38,289,682
-------------- -------------- -------------- --------------
TOTAL INCREASE IN NET ASSETS...................... 51,136,525 37,435,867 63,182,061 38,187,785
NET ASSETS:
Beginning of period............................... 25,000 25,000 25,000 25,000
-------------- -------------- -------------- --------------
End of period [including undistributed net
investment income gain (loss) for April 30, 1997
of $(62,301), $(144,086), $(10,719) and $38,459,
respectively]................................... $ 51,161,525 $ 37,460,867 $ 63,207,061 $ 38,212,785
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
</TABLE>
- ------------------
# Commenced operations November 19, 1996
See Notes to Financial Statements
<PAGE>
5
[STYLE SELECT SERIES(SM) LOGO]
FINANCIAL HIGHLIGHTS -- (unaudited)
<TABLE>
<CAPTION>
NET
GAIN(LOSS) DIVIDENDS
ON INVEST- TOTAL FROM DISTRI-
NET ASSET NET MENTS(BOTH FROM NET BUTIONS
VALUE, INVEST- REALIZED INVEST- INVEST- FROM TOTAL
PERIOD BEGINNING MENT AND MENT MENT CAPITAL DISTRI-
ENDED OF PERIOD INCOME(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS
- ------------------- ---------- ---------- ----------- ---------- --------- ------- -------
AGGRESSIVE GROWTH PORTFOLIO
- ---------------------------
CLASS A
-------
<S> <C> <C> <C> <C> <C> <C> <C>
11/19/96-4/30/97... $12.50 $(0.02) $ 0.03 $ 0.01 $-- $-- $ --
<CAPTION>
CLASS B
-------
<S> <C> <C> <C> <C> <C> <C> <C>
11/19/96-4/30/97... 12.50 (0.06) 0.04 (0.02) -- -- --
<CAPTION>
CLASS C
-------
<S> <C> <C> <C> <C> <C> <C> <C>
3/06/97-4/30/97.... 13.38 (0.01) (0.88) (0.89) -- -- --
<CAPTION>
- --------------------------------------------------------------------------------------------------------
MID-CAP GROWTH PORTFOLIO
- ------------------------
CLASS A
-------
<S> <C> <C> <C> <C> <C> <C> <C>
11/19/96-4/30/97... $12.50 $(0.06) $ (1.42) $(1.48) $-- $-- $ --
<CAPTION>
CLASS B
-------
<S> <C> <C> <C> <C> <C> <C> <C>
11/19/96-4/30/97... 12.50 (0.10) (1.41) (1.51) -- -- --
<CAPTION>
CLASS C
-------
<S> <C> <C> <C> <C> <C> <C> <C>
3/06/97-4/30/97.... 11.93 (0.03) (0.91) (0.94) -- -- --
<CAPTION>
- --------------------------------------------------------------------------------------------------------
VALUE PORTFOLIO
- ---------------
CLASS A
-------
<S> <C> <C> <C> <C> <C> <C> <C>
11/19/96-4/30/97... $12.50 $ 0.01 $ 1.03 $ 1.04 $-- $-- $ --
<CAPTION>
CLASS B
-------
<S> <C> <C> <C> <C> <C> <C> <C>
11/19/96-4/30/97... 12.50 (0.04) 1.04 1.00 -- -- --
<CAPTION>
CLASS C
-------
<S> <C> <C> <C> <C> <C> <C> <C>
3/06/97-4/30/97.... 13.56 (0.02) (0.04) (0.06) -- -- --
<CAPTION>
- --------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
- ------------------------------
CLASS A
-------
<S> <C> <C> <C> <C> <C> <C> <C>
11/19/96-4/30/97... $12.50 $ 0.02 $ (0.04) $(0.02) $-- $-- $ --
<CAPTION>
CLASS B
-------
<S> <C> <C> <C> <C> <C> <C> <C>
11/19/96-4/30/97... 12.50 0.02 (0.08) (0.06) -- -- --
<CAPTION>
CLASS C
-------
<S> <C> <C> <C> <C> <C> <C> <C>
3/06/97-4/30/97.... 12.60 0.03 (0.18) (0.15) -- -- --
<CAPTION>
RATIO OF NET
NET RATIO OF INVESTMENT
ASSET NET ASSETS EXPENSES INCOME AVERAGE
VALUE, END OF TO AVERAGE TO AVERAGE COMMISSION
PERIOD END OF TOTAL PERIOD NET NET PORTFOLIO PER
ENDED PERIOD RETURN(2) (000'S) ASSETS(3)(4) ASSETS(3)(4) TURNOVER SHARE(5)
- ------------------- ------ --------- ---------- ------------ ------------ -------- ----------
AGGRESSIVE GROWTH PORTFOLIO
- ---------------------------
CLASS A
-------
<S> <C> <C> <C> <C> <C> <C> <C>
11/19/96-4/30/97... $12.51 0.08% $ 31,278 1.90% (0.27)% 95% $ 0.0544
<CAPTION>
CLASS B
-------
<S> <C> <C> <C> <C> <C> <C> <C>
11/19/96-4/30/97... 12.48 (0.16) 18,723 2.55 (0.91) 95 0.0544
<CAPTION>
CLASS C
-------
<S> <C> <C> <C> <C> <C> <C> <C>
3/06/97-4/30/97.... 12.49 (6.65) 1,161 2.55 (0.64) 95 0.0544
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
MID-CAP GROWTH PORTFOLIO
- ------------------------
CLASS A
-------
<S> <C> <C> <C> <C> <C> <C> <C>
11/19/96-4/30/97... $11.02 (11.84)% $ 21,055 1.90% (1.04)% 38% $ 0.0472
<CAPTION>
CLASS B
-------
<S> <C> <C> <C> <C> <C> <C> <C>
11/19/96-4/30/97... 10.99 (12.08) 15,551 2.55 (1.76) 38 0.0472
<CAPTION>
CLASS C
-------
<S> <C> <C> <C> <C> <C> <C> <C>
3/06/97-4/30/97.... 10.99 (7.88) 855 2.55 (1.80) 38 0.0472
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
VALUE PORTFOLIO
- ---------------
CLASS A
-------
<S> <C> <C> <C> <C> <C> <C> <C>
11/19/96-4/30/97... $13.54 8.32% $ 35,691 1.90% 0.16% 16% $ 0.0600
<CAPTION>
CLASS B
-------
<S> <C> <C> <C> <C> <C> <C> <C>
11/19/96-4/30/97... 13.50 8.00 25,641 2.55 (0.62) 16 0.0600
<CAPTION>
CLASS C
-------
<S> <C> <C> <C> <C> <C> <C> <C>
3/06/97-4/30/97.... 13.50 (0.44) 1,875 2.55 (0.83) 16 0.0600
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
- ------------------------------
CLASS A
-------
<S> <C> <C> <C> <C> <C> <C> <C>
11/19/96-4/30/97... $12.48 (0.16)% $ 22,995 2.15% 0.32% 14% $ 0.0175
<CAPTION>
CLASS B
-------
<S> <C> <C> <C> <C> <C> <C> <C>
11/19/96-4/30/97... 12.44 (0.48) 14,123 2.80 0.31 14 0.0175
<CAPTION>
CLASS C
-------
<S> <C> <C> <C> <C> <C> <C> <C>
3/06/97-4/30/97.... 12.45 (1.19) 1,095 2.80 1.39 14 0.0175
</TABLE>
- ------------------------
(1) Calculated based upon average shares outstanding
(2) Total return is not annualized and does not reflect sales load
(3) Annualized
(4) Net of the following expense reimbursements (based on average net assets):
Aggressive Growth A...... .22%
Aggressive Growth B...... .35%
Aggressive Growth C...... 2.14%
Mid-Cap Growth A......... .28%
Mid-Cap Growth B......... .44%
Mid-Cap Growth C......... 3.16%
Value A.................. .26%
Value B.................. .36%
Value C.................. 1.67%
International Equity A... .35%
International Equity B... .53%
International Equity C... 3.22%
(5) The average commission per share is derived by taking the agency commissions
paid on equity securities trades and dividing by the number of shares
purchased and sold.
See Notes to Financial Statements
<PAGE>
6
[STYLE SELECT SERIES(SM) LOGO]
AGGRESSIVE GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK--83.6%
AEROSPACE & MILITARY TECHNOLOGY--3.0%
Boeing Co............................................ 5,150 $ 507,919
DONCASTERS PLC ADR+(1)............................... 7,600 171,000
Gulfstream Aerospace Corp.+.......................... 6,000 153,000
REMEC, Inc.+......................................... 25,500 554,625
Tracor, Inc.+........................................ 129,000 129,000
-----------
1,515,544
-----------
APPAREL & TEXTILES--2.4%
Authentic Fitness Corp............................... 15,000 217,500
Goody's Family Clothing, Inc.+....................... 5,000 87,500
NIKE, Inc. Class B................................... 5,075 285,469
Pacific Sunwear of California+....................... 5,000 156,250
Wolverine World Wide, Inc............................ 11,450 460,862
-----------
1,207,581
-----------
BANKS--8.8%
Bank United Corp. Class A............................ 4,500 136,125
BankAmerica Corp..................................... 8,900 1,040,188
Chase Manhattan Corp................................. 1,925 178,303
Citicorp............................................. 7,000 788,375
City National Corp................................... 5,600 128,100
Cullen Frost Bankers, Inc............................ 3,600 124,650
First American Corp.................................. 5,600 365,400
First Security Corp.................................. 3,800 134,425
Hamilton Bancorp, Inc.+.............................. 20,000 380,000
Long Island Bancorp, Inc............................. 4,500 151,875
Wells Fargo & Co..................................... 4,000 1,067,000
-----------
4,494,441
-----------
BROADCASTING & MEDIA--3.2%
Applied Graphics Technologies, Inc.+................. 5,000 148,125
Central European Media Entertainment Light Ltd.,
Class A+........................................... 4,100 115,825
DeVry, Inc.+......................................... 6,100 134,200
Harte Hanks Communications Co........................ 4,700 128,075
Heftel Broadcasting Corp. Class A+................... 3,100 153,450
Houghton Mifflin Co.................................. 2,500 140,312
ITT Educational Services, Inc.+...................... 5,900 134,225
Mecklermedia Corp.+.................................. 20,000 510,000
Paging Network, Inc.+................................ 6,800 47,388
Wiley (John) & Sons, Inc. Class A.................... 4,500 135,562
-----------
1,647,162
-----------
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
BUSINESS SERVICES--7.5%
ADT Ltd.+............................................ 5,100 $ 139,613
Allied Waste Industries, Inc.+....................... 16,800 186,900
America Online, Inc.+................................ 12,500 564,062
Catalina Marketing Corp.+............................ 1,500 47,250
Chicago Bridge & Iron Co. NV+ ....................... 10,000 171,250
CHS Electronics, Inc.+............................... 11,000 206,250
E*TRADE Group, Inc.+................................. 5,000 74,375
Nabors Industries, Inc.+............................. 10,500 196,875
Norrell Corp......................................... 5,400 142,425
NPH, Inc.+........................................... 5,900 131,275
Outdoor Systems, Inc.+............................... 5,250 144,375
Philip Environmental, Inc.+.......................... 10,000 157,500
Quick Response Services, Inc.+....................... 3,200 86,400
Robert Half International, Inc.+..................... 5,800 227,650
Samsonite Corp.+..................................... 23,000 943,000
Superior Services, Inc.+............................. 6,200 136,400
USA Waste Services, Inc.+............................ 4,000 131,000
Waters Corp.+........................................ 4,900 145,162
-----------
3,831,762
-----------
CHEMICALS--0.3%
Monsanto Co.......................................... 4,100 175,275
-----------
COMMUNICATION EQUIPMENT--1.1%
Electronics For Imaging, Inc.+....................... 2,450 95,550
QUALCOMM, Inc.+...................................... 5,000 232,500
Sterling Commerce, Inc.+............................. 5,300 137,138
Tellabs, Inc.+....................................... 2,000 79,500
-----------
544,688
-----------
COMPUTERS & BUSINESS EQUIPMENT--3.6%
BISYS Group, Inc.+................................... 4,600 147,200
Dell Computer Corp.+................................. 13,225 1,105,941
International Business Machines Corp................. 1,000 160,750
Miller (Herman), Inc................................. 6,200 199,950
Quantum Corp.+....................................... 1,900 79,087
Reynolds & Reynolds Co. Class A...................... 6,800 141,100
-----------
1,834,028
-----------
</TABLE>
<PAGE>
7
[STYLE SELECT SERIES(SM) LOGO]
AGGRESSIVE GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
DRUGS--3.0%
Lilly (Eli) & Co..................................... 3,725 $ 327,334
Merck & Co., Inc..................................... 2,225 201,362
Pfizer, Inc.......................................... 5,475 525,600
Sepracor, Inc.+...................................... 5,900 114,313
Teva Pharmaceutical Industries Ltd. ADR(1)........... 7,000 351,750
-----------
1,520,359
-----------
ELECTRICAL EQUIPMENT--0.6%
Etec Systems, Inc.+.................................. 4,400 126,500
General Electric Co.................................. 1,425 157,997
-----------
284,497
-----------
ELECTRONICS--11.5%
3D Labs, Inc., Ltd.+................................. 10,000 227,500
Altera Corp.+........................................ 8,800 435,600
ANADIGICS, Inc.+..................................... 4,500 124,875
Analog Devices, Inc.+................................ 10,000 267,500
Burr-Brown Corp.+.................................... 7,800 230,100
GaSonics International Corp.+........................ 11,800 100,300
Intel Corp........................................... 5,525 845,325
Lam Research Corp.+.................................. 3,300 95,700
Lattice Semiconductor Corp.+......................... 2,400 134,100
Linear Technology Corp............................... 5,000 250,000
LSI Logic Corp.+..................................... 5,000 191,250
Maxim Integrated Products, Inc.+..................... 9,400 494,675
Micrel, Inc.+........................................ 3,000 131,250
Microchip Technology, Inc.+.......................... 3,150 98,437
Micron Technology, Inc............................... 5,000 176,250
Motorola, Inc........................................ 7,000 400,750
Speedfam International, Inc.+........................ 4,000 97,000
Tencor Instruments+.................................. 3,600 159,750
Texas Instruments, Inc............................... 5,000 446,250
Veeco Instruments, Inc.+............................. 11,000 343,750
Vitesse Semiconductor Corp.+......................... 15,000 472,500
Xilinx, Inc.+........................................ 3,800 185,725
-----------
5,908,587
-----------
ENERGY SERVICES--1.3%
Global Industries Ltd.+.............................. 6,000 124,500
Petroleum Geo-Services A/S ADR+(1)................... 6,100 234,850
Pride Petroleum Services, Inc.+...................... 10,500 179,813
Trico Marine Services, Inc.+......................... 3,600 126,900
-----------
666,063
-----------
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
ENERGY SOURCES--0.8%
Brown (Tom), Inc.+................................... 7,700 $ 138,600
Chieftain International, Inc.+....................... 6,800 136,000
Nuevo Energy Co.+.................................... 1,400 48,125
Texas Meridian Resources Corp.+...................... 9,900 110,138
-----------
432,863
-----------
FINANCIAL SERVICES--3.5%
American Express Co.................................. 6,050 398,544
Edwards (A.G.), Inc.................................. 5,000 175,000
Legg Mason, Inc...................................... 3,000 142,500
Merrill Lynch & Co., Inc............................. 7,750 738,187
Nationwide Financial Services, Inc. Class A+......... 5,100 135,150
T. Rowe Price Associates, Inc........................ 4,200 194,250
-----------
1,783,631
-----------
FOOD, BEVERAGE & TOBACCO--2.0%
Anheuser-Busch Cos., Inc............................. 6,050 259,394
Coca-Cola Co......................................... 4,300 273,587
Coca-Cola Enterprises, Inc........................... 900 54,338
Consolidated Cigar Holdings, Inc. Class A+........... 5,600 128,800
Flowers Industries, Inc.............................. 7,500 182,812
General Cigar Holdings, Inc. Class A+................ 5,000 118,125
-----------
1,017,056
-----------
FOREST PRODUCTS--0.2%
Consolidated Papers, Inc............................. 2,000 107,500
-----------
HEALTH SERVICES--1.6%
Gilead Sciences, Inc.+............................... 5,300 116,600
Healthsource, Inc.+.................................. 6,500 136,500
MedPartners, Inc.+................................... 8,000 146,000
Mid Atlantic Medical Services, Inc.+................. 9,900 117,563
Oxford Health Plans, Inc.+........................... 4,575 300,806
-----------
817,469
-----------
</TABLE>
<PAGE>
8
[STYLE SELECT SERIES(SM) LOGO]
AGGRESSIVE GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
HOUSEHOLD PRODUCTS--4.7%
Alberto-Culver Co. Class A........................... 7,700 $ 190,575
Carson, Inc. Class A+................................ 11,700 87,750
Central Garden & Pet Co.+............................ 7,500 149,063
Corning, Inc......................................... 10,000 482,500
Gillette Co.......................................... 3,200 272,000
Intimate Brands, Inc. Class A........................ 10,000 186,250
Libbey, Inc.......................................... 4,200 130,200
Procter & Gamble Co.................................. 2,075 260,931
Warner-Lambert Co.................................... 6,375 624,750
-----------
2,384,019
-----------
INSURANCE--1.2%
American International Group, Inc.................... 975 125,288
Protective Life Corp................................. 5,000 221,250
Provident Co., Inc................................... 5,000 279,375
-----------
625,913
-----------
LEISURE & TOURISM--1.5%
Doubletree Corp.+.................................... 3,600 151,200
La Quinta Inns, Inc.................................. 6,000 131,250
Premier Parks, Inc.+................................. 4,700 137,475
Ryan's Family Steak Houses, Inc.+.................... 29,000 250,125
Vistana, Inc.+....................................... 11,900 113,050
-----------
783,100
-----------
MACHINERY--1.1%
ASM Lithography Holding NV+.......................... 2,000 158,250
Flanders Corp.+...................................... 2,500 18,125
Kulicke & Soffa Industries, Inc...................... 5,000 139,375
Minnesota Mining & Manufacturing Co.................. 2,975 258,825
-----------
574,575
-----------
MEDICAL PRODUCTS--0.9%
Conceptus, Inc.+..................................... 11,200 109,200
ESC Medical Systems Ltd.+............................ 6,000 159,000
Nitinol Medical Technologies, Inc.+.................. 8,000 68,000
SangStat Medical Corp.+.............................. 6,000 102,000
-----------
438,200
-----------
REAL ESTATE COMPANIES--0.2%
U.S. Restaurant Properties Master LP................. 3,500 98,875
-----------
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE INVESTMENT
TRUSTS--0.4%
CarrAmerica Realty Corp.............................. 5,000 $ 139,375
Security Capital Pacific Trust....................... 3,800 86,450
-----------
225,825
-----------
RETAIL--4.0%
Borders Group, Inc.+................................. 10,600 225,250
Footstar, Inc.+...................................... 17,800 369,350
Guitar Center, Inc.+................................. 5,000 70,000
Home Depot, Inc...................................... 4,375 253,750
Mac Frugals Bargains
Close-Outs, Inc.+.................................. 4,800 140,400
Payless ShoeSource, Inc.+............................ 4,400 187,000
Stride Rite Corp..................................... 25,000 343,750
Warnaco Group, Inc. Class A.......................... 10,000 285,000
Wet Seal, Inc. Class A+.............................. 6,200 151,900
-----------
2,026,400
-----------
SOFTWARE--7.8%
Baan Co. NV+......................................... 10,400 557,700
BMC Software, Inc.+.................................. 6,400 276,000
Cisco Systems, Inc.+................................. 7,625 394,594
Harbinger Corp.+..................................... 6,050 121,000
Keane, Inc.+......................................... 3,000 139,125
KLA Instruments Corp.+............................... 3,600 160,200
Microsoft Corp.+..................................... 5,700 692,550
National Instruments Corp.+.......................... 5,600 169,400
Peoplesoft, Inc.+.................................... 7,600 316,350
Rational Software Corp.+............................. 7,900 108,625
Read-Rite Corp.+..................................... 5,000 129,375
Storage Technology Corp.+............................ 2,500 87,812
Structural Dynamics Research Corp.+.................. 7,200 150,300
SunGard Data Systems, Inc.+.......................... 3,800 168,625
Synopsys, Inc.+...................................... 4,745 151,247
Transaction Systems Architects, Inc. Class A+........ 5,000 148,125
Veritas Software Corp.+.............................. 5,000 168,125
Zitel Corp.+......................................... 2,000 27,500
-----------
3,966,653
-----------
TELECOMMUNICATIONS--2.6%
Advanced Micro Devices, Inc.+........................ 1,000 42,500
Brooks Fiber Properties, Inc.+....................... 7,600 165,300
Lucent Technologies, Inc............................. 16,975 1,003,647
McLeod, Inc. Class A+................................ 7,300 133,225
-----------
1,344,672
-----------
</TABLE>
<PAGE>
9
[STYLE SELECT SERIES(SM) LOGO]
AGGRESSIVE GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
SHARES/WARRANTS/
PRINCIPAL AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
TELEPHONE--1.0%
Telecomunicacoes Brasileras SA ADR(1)........... 2,000 $ 229,500
Telefonica de Espana SA ADR(1).................. 1,000 77,000
WorldCom, Inc.+................................. 9,040 215,830
-----------
522,330
-----------
TRANSPORTATION--3.8%
Caliber System, Inc............................. 25,000 743,750
Coach USA, Inc.+................................ 7,400 187,775
Consolidated Freightways
Corp.+........................................ 4,000 43,500
Consolidated Freightways, Inc................... 5,000 148,750
Heartland Express, Inc.+........................ 7,100 148,212
M.S. Carriers, Inc.+............................ 6,000 115,500
Swift Transportation Co., Inc.+................. 4,900 139,650
Team Rental Group, Inc.+........................ 5,000 112,500
Yellow Corp.+................................... 15,000 286,875
-----------
1,926,512
-----------
TOTAL COMMON STOCK (cost $42,316,092)............. 42,705,580
-----------
WARRANTS--0.4%+
ELECTRONICS--0.4%
Intel Corp. 3/14/98
(cost $217,500)................................. 2,000 225,750
-----------
TOTAL INVESTMENT SECURITIES--84.0%
(cost $42,533,592).............................. 42,931,330
-----------
SHORT-TERM SECURITIES--10.3%
Federal Home Loan
Mortgage Discount Notes
5.23% due 6/13/97............................. $2,000 1,987,506
Federal Home Loan
Mortgage Discount Notes
5.41% due 5/13/97............................. 2,000 1,996,393
Avco Financial Services, Inc. 5.52% due
5/14/97....................................... 500 498,850
Household Finance Corp. 5.58% due 5/01/97....... 800 800,000
-----------
TOTAL SHORT-TERM SECURITIES
(cost $5,282,749)............................... 5,282,749
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE
AGREEMENTS--8.2%
Agreement with State Street Bank and Trust Co.,
bearing 5.30% dated 4/30/97 to be repurchased
5/01/97 in the amount of $2,872,423
collateralized by $2,925,000 U.S. Treasury Note
5.25%, due 7/31/98 approximate aggregate value
$2,933,047
(cost $2,872,000)............................... $2,872 $ 2,872,000
Joint Repurchase Agreement
Account (Note 2)
(cost $1,332,000)............................... 1,332 1,332,000
-----------
TOTAL REPURCHASE AGREEMENTS (cost $4,204,000)....... 4,204,000
-----------
TOTAL INVESTMENTS-- (cost $52,020,341).............. 102.5% 52,418,079
Liabilities in excess of other assets............... (2.5) (1,256,554)
------- -----------
NET ASSETS-- 100.0% $51,161,525
------- -----------
------- -----------
</TABLE>
- ------------------
+ Non-income producing security
(1) ADR ('American Depositary Receipt')
See Notes to Financial Statements
<PAGE>
10
[STYLE SELECT SERIES(SM) LOGO]
MID-CAP GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK--85.3%
AEROSPACE & MILITARY TECHNOLOGY--0.5%
BE Aerospace, Inc.+.................................. 7,300 $ 177,025
-----------
APPAREL & TEXTILES--4.1%
Burlington Coat Factory Warehouse+................... 3,600 68,400
Danaher Corp. ....................................... 9,900 446,737
Finish Line, Inc. Class A+........................... 6,000 61,500
Gucci Group NV....................................... 3,200 222,000
Jones Apparel Group, Inc.+........................... 5,300 221,275
Nautica Enterprises, Inc.+........................... 5,100 111,563
Tommy Hilfiger Corp.+................................ 4,100 162,975
Warnaco Group, Inc.
Class A............................................ 9,200 262,200
-----------
1,556,650
-----------
AUTOMOTIVE--0.7%
Harley-Davidson, Inc. ............................... 2,500 98,750
OEA, Inc. ........................................... 4,500 161,438
-----------
260,188
-----------
BROADCASTING & MEDIA--5.5%
360 Communications Co.+.............................. 8,500 147,687
Apollo Group, Inc.+.................................. 5,900 158,562
Cinar Films, Inc. Class B+........................... 5,700 128,250
Clear Channel Communications, Inc.+.................. 6,300 305,550
Comcast Corp. Class A................................ 17,900 281,925
Heftel Broadcasting Corp. Class A+................... 3,400 168,300
Imax Corp.+.......................................... 4,400 156,200
Metro Networks, Inc.+................................ 5,700 144,638
Palmer Wireless, Inc. Class A+....................... 6,000 69,750
Scholastic Corp.+.................................... 1,800 45,000
TCI Satellite Entertainment, Inc. Class A+........... 14,980 112,350
Tele-Communications Liberty Media Group+............. 16,550 310,312
Vanguard Cellular Systems, Inc....................... 4,700 46,413
-----------
2,074,937
-----------
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
BUSINESS SERVICES--10.7%
AccuStaff, Inc.+..................................... 9,800 $ 178,850
Adaptec, Inc.+....................................... 4,900 181,300
ADT Ltd.+............................................ 8,800 240,900
Advo, Inc.+.......................................... 2,500 30,313
Catalina Marketing Corp.+............................ 4,300 135,450
Cintas Corp. ........................................ 3,800 208,050
Corporate Express, Inc.+............................. 10,800 105,300
Corrections Corp.
of America+........................................ 9,100 296,887
CUC International, Inc.+............................. 6,300 133,088
Gartner Group, Inc.
Class A+........................................... 13,900 364,875
Interim Services, Inc.+.............................. 5,600 217,000
National Data Corp. ................................. 3,600 135,000
Paychex, Inc. ....................................... 6,600 308,550
Philip Environmental, Inc.+.......................... 10,000 157,500
Republic Industries, Inc.+........................... 9,800 242,550
Samsonite Corp.+..................................... 2,400 98,400
Scopus Technology, Inc.+............................. 3,900 103,350
Solectron Corp.+..................................... 2,500 143,437
TeleTech Holdings, Inc.+............................. 4,500 78,188
Ticketmaster Group, Inc.+............................ 5,600 65,800
U.S. Filter Corp.+................................... 4,500 136,687
United Waste Systems, Inc.+.......................... 3,800 127,775
USA Waste Services, Inc.+............................ 9,600 314,400
-----------
4,003,650
-----------
CHEMICALS--0.7%
Great Lakes Chemical Corp. .......................... 2,100 88,988
Polymer Group, Inc. ................................. 3,400 43,350
Zoltek Cos., Inc.+................................... 4,000 114,500
-----------
246,838
-----------
COMMUNICATION EQUIPMENT--4.8%
ADC Telecommunications, Inc.+........................ 7,200 187,200
Ascend Communications, Inc.+......................... 2,400 109,800
Cascade Communicationse Co.+......................... 2,800 87,850
CIENA Corp.+......................................... 2,200 68,750
Cox Communications, Inc. Class A+.................... 6,000 117,000
FORE Systems, Inc.+.................................. 3,100 47,275
Loral Space & Communications Corp.+.................. 13,700 200,362
QUALCOMM, Inc.+...................................... 1,600 74,400
</TABLE>
<PAGE>
11
[STYLE SELECT SERIES(SM) LOGO]
MID-CAP GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
COMMUNICATION EQUIPMENT (CONTINUED)
Tellabs, Inc.+....................................... 12,200 $ 484,950
U.S. Robotics Corp.+................................. 5,900 297,950
Univision Communications, Inc. Class A+.............. 4,100 139,400
-----------
1,814,937
-----------
COMPUTERS & BUSINESS EQUIPMENT--2.7%
BDM International, Inc.+............................. 6,100 141,825
Checkfree Corp.+..................................... 5,000 69,375
Dell Computer Corp.+................................. 1,700 142,163
Gateway 2000, Inc.+.................................. 4,800 262,800
Hutchinson Technology, Inc.+......................... 3,700 99,900
Ikon Office Solutions, Inc. ......................... 7,700 206,937
Security Dynamics Technologies, Inc.+................ 3,100 78,275
-----------
1,001,275
-----------
DRUGS--2.0%
BioChem Pharma, Inc.+................................ 5,200 92,950
Biogen, Inc.+........................................ 4,600 147,200
Centocor, Inc.+...................................... 2,800 78,750
Dura Pharmaceuticals, Inc.+.......................... 4,700 136,300
Jones Medical Industries, Inc........................ 6,100 215,787
PathoGenesis Corp.+.................................. 2,700 70,200
-----------
741,187
-----------
ELECTRONICS--4.6%
Altera Corp.+........................................ 10,000 495,000
Analog Devices, Inc.+................................ 4,566 122,140
Cadence Design Systems, Inc.+........................ 3,100 99,200
Kulicke & Soffa Industries, Inc...................... 3,900 108,713
Lattice Semiconductor Corp.+......................... 1,100 61,463
Linear Technology Corp. ............................. 4,300 215,000
Macrovision Corp.+................................... 4,100 45,613
Maxim Integrated Products, Inc....................... 2,500 131,562
Teleflex, Inc. ...................................... 3,300 190,575
Uniphase Corp.+...................................... 3,400 133,450
Xilinx, Inc.+........................................ 2,500 122,187
-----------
1,724,903
-----------
ENERGY SERVICES--2.7%
Camco International, Inc. ........................... 4,500 199,687
Cooper Cameron Corp.+................................ 2,200 156,750
Global Marine, Inc.+................................. 13,200 265,650
Tidewater, Inc.+..................................... 6,200 248,775
Weatherford Enterra, Inc.+........................... 4,000 127,000
-----------
997,862
-----------
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
ENERGY SOURCES--0.7%
Chesapeake Energy Corp.+............................. 7,800 $ 117,975
United Meridian Corp.+............................... 4,500 127,688
-----------
245,663
-----------
FINANCIAL SERVICES--3.0%
Charles Schwab Corp. ................................ 4,900 179,463
Franklin Resources, Inc. ............................ 3,350 198,069
Mercury Finance Co. ................................. 6,000 9,750
Money Store, Inc. ................................... 18,300 393,450
Nationwide Financial Services, Inc. Class A+......... 5,200 137,800
Sirrom Capital Corp. ................................ 6,100 189,862
-----------
1,108,394
-----------
FOOD, BEVERAGE & TOBACCO--1.3%
Consolidated Cigar Holdings, Inc. Class A+........... 3,200 73,600
JP Foodservice, Inc.+................................ 7,500 209,063
Robert Mondavi Corp.+................................ 5,200 193,700
-----------
476,363
-----------
FOREST PRODUCTS--0.7%
American Pad & Paper Co.+............................ 7,400 110,075
Sealed Air Corp. .................................... 3,300 152,625
-----------
262,700
-----------
HEALTH SERVICES--8.7%
Apria Healthcare Group, Inc.+........................ 5,100 86,063
Covance, Inc.+....................................... 8,400 123,900
HBO & Co. ........................................... 9,300 496,387
Health Management Associates, Inc.+.................. 17,400 465,450
HEALTHSOUTH Corp.+................................... 11,000 217,250
Lincare Holdings, Inc.+.............................. 8,100 313,875
Orthodontic Centers of America, Inc.+................ 7,900 93,813
Oxford Health Plans, Inc.+........................... 4,800 315,600
Pacificare Health Systems, Inc. Class B+............. 1,600 128,200
Pediatrix Medical Group+............................. 2,100 69,300
PhyCor, Inc.+........................................ 8,400 222,600
Quest Diagnostics, Inc.+............................. 8,400 148,050
</TABLE>
<PAGE>
12
[STYLE SELECT SERIES(SM) LOGO]
MID-CAP GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
HEALTH SERVICES (CONTINUED)
Quintiles Transnational Corp.+ ...................... 3,800 $ 192,850
Quorum Health Group, Inc.+........................... 6,100 188,337
Total Renal Care Holdings, Inc.+..................... 2,400 77,100
Vivra, Inc.+......................................... 5,000 129,375
-----------
3,268,150
-----------
HOUSEHOLD PRODUCTS--1.0%
Blyth Industries, Inc.+.............................. 2,800 110,600
Estee Lauder Cos., Inc. Class A...................... 3,900 178,425
Rexall Sundown, Inc.+................................ 5,300 105,338
-----------
394,363
-----------
INSURANCE--1.5%
Ace Ltd. ............................................ 4,200 252,000
PartnerRe Ltd. ...................................... 5,600 188,300
PMI Group, Inc. ..................................... 2,200 112,475
-----------
552,775
-----------
LEISURE & TOURISM--4.3%
Boston Chicken, Inc.+................................ 17,400 413,250
Callaway Golf Co. ................................... 3,200 95,600
CKE Restaurants, Inc. ............................... 2,800 54,950
HFS, Inc.+........................................... 5,600 331,800
La Quinta Inns, Inc. ................................ 9,800 214,375
Landry's Seafood Restaurants, Inc.+.................. 3,400 47,600
Outback Steakhouse, Inc.+............................ 5,600 109,900
Premier Parks, Inc.+................................. 3,100 90,675
Royal Caribbean Cruises Ltd.......................... 5,000 159,375
Vail Resorts, Inc.+.................................. 4,300 87,612
-----------
1,605,137
-----------
MACHINERY--0.8%
MSC Industrial Direct Co., Inc. Class A+............. 3,500 107,625
Smith International, Inc.+........................... 4,200 198,975
-----------
306,600
-----------
MEDICAL PRODUCTS--1.8%
Cardinal Health, Inc. ............................... 6,700 356,775
Gilead Sciences, Inc.+............................... 5,600 123,200
Sybron International Corp.+.......................... 5,700 189,525
-----------
669,500
-----------
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
METALS & MINERALS--1.6%
Battle Mountain Gold Co. ............................ 21,300 $ 122,475
Cambior, Inc. ....................................... 10,100 121,200
TriMas Corp. ........................................ 9,800 241,325
TVX Gold, Inc.+...................................... 20,400 114,750
-----------
599,750
-----------
REAL ESTATE COMPANIES--0.2%
Security Capital US Realty+.......................... 5,500 81,950
-----------
REAL ESTATE INVESTMENT TRUSTS--0.3%
Security Capital Industrial Trust.................... 6,200 124,775
-----------
RETAIL--7.1%
Bed Bath & Beyond, Inc.+............................. 8,400 228,900
Borders Group, Inc.+................................. 9,500 201,875
CDW Computer Centers, Inc.+.......................... 2,100 99,488
Circuit City Stores-Circuit City Group............... 5,000 198,125
CompUSA, Inc.+....................................... 8,000 154,000
Costco Cos., Inc.+................................... 5,000 144,375
CVS Corp. ........................................... 4,400 218,350
Eagle Hardware & Garden, Inc.+....................... 5,500 101,750
Fastenal Co. ........................................ 2,000 77,250
General Nutrition Cos., Inc.+........................ 10,100 215,887
Gymboree Corp.+...................................... 7,000 193,375
Just For Feet, Inc.+................................. 4,600 73,025
Kohl's Corp.+........................................ 3,400 166,175
Richfood Holdings, Inc. ............................. 8,100 165,037
Staples, Inc.+....................................... 8,300 149,400
Tiffany & Co. ....................................... 2,700 106,988
Waban, Inc.+......................................... 5,600 149,800
-----------
2,643,800
-----------
SOFTWARE--9.7%
Affiliated Computer Services, Inc.+.................. 5,900 153,400
BEA Systems, Inc.+................................... 5,800 34,800
BMC Software, Inc.+.................................. 12,800 552,000
DST Systems, Inc.+................................... 5,000 141,875
Electronics For Imaging, Inc.+....................... 9,900 386,100
Fiserv, Inc.+........................................ 5,300 198,750
HNC Software, Inc.+.................................. 3,900 103,350
Intuit, Inc.+........................................ 2,600 57,525
McAfee Associates, Inc.+............................. 8,700 483,937
Network General Corp.+............................... 5,800 79,750
Parametric Technology Corp.+......................... 3,700 166,962
Peoplesoft, Inc.+.................................... 9,600 399,600
Platinum Technology, Inc.+........................... 4,300 51,600
Sapient Corp.+....................................... 2,800 98,000
SeaChange International, Inc.+....................... 3,600 69,750
</TABLE>
<PAGE>
13
[STYLE SELECT SERIES(SM) LOGO]
MID-CAP GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
SOFTWARE (CONTINUED)
Sterling Commerce, Inc.+............................. 2,800 $ 72,450
SunGard Data Systems, Inc.+.......................... 3,600 159,750
Synopsys, Inc.+...................................... 3,900 124,313
Viasoft, Inc.+....................................... 1,400 59,150
Visio Corp.+......................................... 3,000 150,000
Wind River Systems+.................................. 3,750 86,250
-----------
3,629,312
-----------
TELECOMMUNICATIONS--3.0%
Advanced Fibre Communications+....................... 2,600 103,675
Aerial Communications, Inc.+......................... 5,000 24,375
Aspect Telecommunications Corp.+..................... 3,400 59,925
Globalstar Telecommunications Ltd.+.................. 6,154 324,623
Millicom International Cellular SA+.................. 4,700 213,850
PairGain Technologies, Inc.+......................... 8,700 225,113
Tel-Save Holdings, Inc.+............................. 4,400 61,600
Vitesse Semiconductor Corp.+......................... 4,000 126,000
-----------
1,139,161
-----------
TELEPHONE--0.6%
WorldCom, Inc.+...................................... 9,980 238,273
-----------
TOTAL INVESTMENT SECURITIES--85.3%
(cost $34,071,753)............................................. 31,946,118
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM SECURITIES--14.4%
Cayman Island Time Deposit
4.50% due 5/01/97 .......................... $3,851 $ 3,851,000
Federal Home Loan Mortgage Discount Notes
5.35% due 5/12/97 .......................... 1,244 1,241,966
Federal Home Loan Mortgage Discount Notes
5.36% due 5/07/97 .......................... 56 55,950
United States Treasury Bills
4.98% due 6/05/97 .......................... 94 93,545
United States Treasury Bills
5.00% due 5/01/97 .......................... 73 73,000
United States Treasury Bills
5.02% due 5/01/97 .......................... 20 20,000
United States Treasury Bills
5.02% due 6/05/97 .......................... 57 56,722
-----------
TOTAL SHORT-TERM SECURITIES
(cost $5,392,183)............................. 5,392,183
-----------
TOTAL INVESTMENTS--
(cost $39,463,936)............................ 99.7% 37,338,301
Other assets less liabilities................... 0.3 122,566
------- -----------
NET ASSETS-- 100.0% $37,460,867
------- -----------
------- -----------
</TABLE>
- ------------------
+ Non-income producing security
See Notes to Financial Statements
<PAGE>
14
[STYLE SELECT SERIES(SM) LOGO]
VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK--89.6%
AEROSPACE & MILITARY TECHNOLOGY--1.0%
Boeing Co. ........................................ 2,900 $ 286,013
LucasVarity PLC ADR+(1)............................ 3,800 114,000
Sundstrand Corp. .................................. 4,700 229,125
-----------
629,138
-----------
APPAREL & TEXTILES--1.0%
Burlington Industries, Inc.+ ...................... 42,400 434,600
NIKE, Inc. Class B................................. 3,100 174,375
-----------
608,975
-----------
AUTOMOTIVE--6.0%
Borg-Warner Automotive, Inc. ...................... 10,050 422,100
Chrysler Corp. .................................... 28,850 865,500
Cummins Engine, Inc. .............................. 8,200 460,225
Ford Motor Co. .................................... 12,650 439,587
General Motors Corp. .............................. 14,050 813,144
Goodyear Tire & Rubber Co. ........................ 15,400 810,425
-----------
3,810,981
-----------
BANKS--8.0%
Banc One Corp. .................................... 4,600 194,925
BankAmerica Corp. ................................. 3,600 420,750
Barnett Banks, Inc. ............................... 2,700 131,963
Chase Manhattan Corp. ............................. 5,100 472,387
Citicorp........................................... 7,700 867,212
First Bank System, Inc. ........................... 3,900 299,325
Golden West Financial Corp.+ ...................... 2,200 143,000
KeyCorp. .......................................... 8,700 453,487
Mellon Bank Corp. ................................. 5,600 465,500
National Bank Canada Montreal Quebec............... 40,300 470,215
Northern Trust Corp. .............................. 10,900 485,050
TCF Financial Corp. ............................... 1,300 53,138
Wells Fargo & Co. ................................. 2,300 613,525
-----------
5,070,477
-----------
BROADCASTING & MEDIA--3.2%
360 Communications Co.+............................ 8,700 151,162
Comcast Corp. Class A.............................. 15,500 244,125
Evergreen Media Corp. Class A+..................... 12,000 387,000
Gannett Co., Inc. ................................. 2,800 244,300
Knight Ridder, Inc. ............................... 9,100 353,762
News Corp., Ltd. ADR(1)............................ 7,900 119,488
Scripps Howard, Inc. Class A....................... 4,000 152,000
Time Warner, Inc. ................................. 5,600 252,000
Tribune Co. ....................................... 2,600 114,075
-----------
2,017,912
-----------
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
BUSINESS SERVICES--2.7%
ACNielson Corp.+ .................................. 11,000 $ 165,000
Federal Express Corp.+ ............................ 8,150 439,081
Fluor Corp. ....................................... 2,600 143,000
Halliburton Co. ................................... 7,400 522,625
Owens Corning Co. ................................. 11,050 447,525
-----------
1,717,231
-----------
CHEMICALS--3.4%
Cabot Corp. ....................................... 13,500 297,000
Cyprus Amax Minerals Co. .......................... 18,400 411,700
du Pont (E.I.) de Nemours & Co. ................... 2,500 265,312
IMC Global, Inc. .................................. 5,100 188,063
Morton International, Inc. ........................ 10,500 439,687
Raychem Corp. ..................................... 4,000 258,000
W.R. Grace & Co. .................................. 5,500 286,000
-----------
2,145,762
-----------
COMMUNICATION
EQUIPMENT--1.6%
AirTouch Communications, Inc.+ .................... 20,900 532,950
SBC Communications, Inc. .......................... 8,650 480,075
-----------
1,013,025
-----------
COMPUTERS & BUSINESS EQUIPMENT--4.7%
3Com Corp.+ ....................................... 4,100 118,900
Cabletron Systems, Inc.+ .......................... 6,600 227,700
Compaq Computer Corp.+ ............................ 4,500 384,187
Hewlett-Packard Co. ............................... 13,100 687,750
International Business Machines Corp. ............. 5,300 851,975
Komag, Inc.+ ...................................... 13,700 381,887
Western Digital Corp.+ ............................ 5,300 326,613
-----------
2,979,012
-----------
DRUGS--1.7%
Bristol-Myers Squibb Co. .......................... 2,000 131,000
Lilly (Eli) & Co. ................................. 1,300 114,237
Merck & Co., Inc. ................................. 700 63,350
Novartis AG ADR(1)................................. 8,059 531,090
Pfizer, Inc. ...................................... 2,700 259,200
-----------
1,098,877
-----------
ELECTRIC UTILITIES--0.7%
Northeast Utilities System+........................ 52,500 433,125
-----------
</TABLE>
<PAGE>
15
[STYLE SELECT SERIES(SM) LOGO]
VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
ELECTRICAL EQUIPMENT--0.6%
General Electric Co. .............................. 200 $ 22,175
Harman International Industries, Inc.+ ............ 8,300 317,475
Molex, Inc. ....................................... 750 23,156
-----------
362,806
-----------
ELECTRONICS--6.4%
Analog Devices, Inc.+ ............................. 11,800 315,650
Applied Materials, Inc.+ .......................... 4,950 271,013
Avnet, Inc. ....................................... 7,450 453,519
Intel Corp. ....................................... 4,400 673,200
KLA Instruments Corp.+ ............................ 6,300 280,350
Millipore Corp. ................................... 6,600 249,150
Motorola, Inc. .................................... 3,100 177,475
NCR Corp.+ ........................................ 6 174
Novellus Systems, Inc.+ ........................... 2,000 114,500
Philips Electronics NV ADR(1)...................... 9,050 484,175
Seagate Technology, Inc.+ ......................... 7,000 321,125
Tektronix, Inc. ................................... 8,300 449,237
Texas Instruments, Inc. ........................... 3,200 285,600
-----------
4,075,168
-----------
ENERGY SERVICES--2.9%
Burlington Resources, Inc. ........................ 7,100 300,862
Chevron Corp. ..................................... 200 13,700
Cooper Cameron Corp.+ ............................. 2,700 192,375
Energy Ventures, Inc. ............................. 2,300 153,813
Exxon Corp. ....................................... 700 39,638
Falcon Drilling, Inc.+ ............................ 600 22,950
Reading & Bates Corp.+ ............................ 18,300 409,462
Schlumberger Ltd................................... 2,200 243,650
YPF Sociedad Anonima ADR(1)........................ 15,750 435,094
-----------
1,811,544
-----------
ENERGY SOURCES--3.6%
Atlantic Richfield Co. ............................ 3,350 456,019
Noble Affiliates, Inc. ............................ 6,300 225,225
Repsol SA ADR(1)................................... 10,300 431,312
Tosco Corp......................................... 500 14,813
Triton Energy Ltd. Class A+........................ 9,400 345,450
Ultramar Diamond Shamrock Co. ..................... 14,000 449,750
Union Pacific Resources Group, Inc. ............... 13,600 368,900
-----------
2,291,469
-----------
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
FINANCIAL SERVICES--6.9%
American Express Co. .............................. 13,600 $ 895,900
Capital One Financial Corp. ....................... 5,700 205,913
Countrywide Credit
Industries, Inc. ................................ 3,400 92,225
Dean Witter, Discover & Co. ....................... 6,800 260,100
Donaldson Lufkin & Jenrette, Inc. ................. 4,000 172,500
Federal Home Loan Mortgage Corp. .................. 10,000 318,750
Morgan (J.P.) & Co., Inc. ......................... 2,400 244,500
Morgan Stanley Asia-Pacific Fund+.................. 11,900 116,025
Morgan Stanley Group, Inc. ........................ 12,450 785,906
Paine Webber Group, Inc. .......................... 13,400 455,600
State Street Corp. ................................ 3,500 275,625
Travelers Group, Inc. ............................. 9,800 542,675
-----------
4,365,719
-----------
FOOD, BEVERAGE & TOBACCO--4.3%
Archer-Daniels-Midland Co. ........................ 13,900 255,413
Coca-Cola Co. ..................................... 3,200 203,600
IBP, Inc. ......................................... 28,750 682,812
Nestle SA ADR(1)................................... 2,700 164,004
Philip Morris Cos., Inc. .......................... 28,700 1,130,062
RJR Nabisco Holdings Corp. ........................ 6,800 202,300
Tyson Foods, Inc. Class A.......................... 3,400 67,150
-----------
2,705,341
-----------
FOREST PRODUCTS--2.8%
Asia Pulp & Paper Ltd. ADR+(1)..................... 36,400 486,850
Fort Howard Corp.+ ................................ 12,200 417,850
Jefferson Smurfit Corp.+ .......................... 3,100 40,300
Mead Corp. ........................................ 4,900 275,013
Owens Illinois, Inc.+ ............................. 17,200 464,400
Temple-Inland, Inc. ............................... 1,400 77,700
-----------
1,762,113
-----------
HEALTH SERVICES--0.3%
Columbia/HCA Healthcare Corp. ..................... 5,100 178,500
-----------
HOUSEHOLD PRODUCTS--1.3%
Kimberly-Clark Corp. .............................. 1,300 66,625
Singer Co., Inc.+ ................................. 22,800 421,800
Tupperware Corp. .................................. 10,700 355,775
-----------
844,200
-----------
HOUSING--0.7%
Masco Corp. ....................................... 11,700 441,675
-----------
</TABLE>
<PAGE>
16
[STYLE SELECT SERIES(SM) LOGO]
VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
INSURANCE--7.8%
20th Century Industries............................ 4,400 $ 78,100
Allstate Corp.+ ................................... 9,500 622,250
American International Group, Inc. ................ 1,300 167,050
Berkley (W.R.) Corp. .............................. 13,100 641,900
Chubb Corp. ....................................... 5,500 317,625
Equitable Cos., Inc. .............................. 4,600 134,550
EXEL Ltd........................................... 7,500 292,500
General Reinsurance Group.......................... 2,400 401,400
LaSalle Reinsurance Holdings Ltd................... 15,100 419,025
NAC Reinsurance Corp. ............................. 1,100 42,625
Old Republic International Corp. .................. 15,800 446,350
Progressive Corp. ................................. 13,600 1,035,300
Transatlantic Holdings, Inc. ...................... 2,700 223,425
UNUM Corp. ........................................ 1,100 84,700
-----------
4,906,800
-----------
LEISURE & TOURISM--4.0%
Continental Airlines, Inc. Class B+................ 9,600 304,800
Disney (Walt) Co. ................................. 1,600 131,200
Host Marriott Corp.+ .............................. 25,100 436,112
La Quinta Inns, Inc. .............................. 6,300 137,813
McDonald's Corp. .................................. 17,800 954,525
Mirage Resorts, Inc.+ ............................. 21,500 432,687
Royal Caribbean Cruises Ltd........................ 4,600 146,625
-----------
2,543,762
-----------
MACHINERY--1.1%
New Holland NV+.................................... 19,650 434,756
Smith International, Inc.+ ........................ 5,500 260,563
-----------
695,319
-----------
MEDICAL PRODUCTS--0.4%
Allegiance Corp. .................................. 5,600 123,900
Johnson & Johnson Co. ............................. 1,700 104,125
-----------
228,025
-----------
METALS & MINERALS--3.7%
AK Steel Holding Corp. ............................ 8,800 319,000
Carpenter Technology Corp. ........................ 11,150 452,969
Lafarge Corp. ..................................... 18,550 449,837
Martin Marietta Materials,
Inc. ............................................ 9,200 250,700
Southdown, Inc. ................................... 11,900 429,888
UCAR International, Inc.+ ......................... 10,200 428,400
-----------
2,330,794
-----------
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
MULTI-INDUSTRY--0.6%
Cooper Industries, Inc. ........................... 5,100 $ 234,600
Tenneco, Inc. ..................................... 4,200 167,475
-----------
402,075
-----------
REAL ESTATE INVESTMENT
TRUSTS--0.8%
Crescent Real Estate Equities...................... 9,900 259,875
Federal Realty Investment Trust.................... 1,400 36,050
Kimco Realty Corp.+ ............................... 300 9,338
Mid Atlantic Realty Trust.......................... 800 8,900
Saul Centers, Inc. ................................ 800 12,500
United Dominion Realty Trust, Inc. ................ 1,500 20,625
Vornado Realty Trust............................... 2,200 139,975
Weingarten Realty Investors........................ 500 21,312
-----------
508,575
-----------
RETAIL--2.7%
Costco Cos., Inc.+ ................................ 12,800 369,600
Harcourt General, Inc. ............................ 8,800 407,000
Home Depot, Inc. .................................. 4,900 284,200
May Department Stores Co. ......................... 9,350 432,438
Wal-Mart Stores, Inc. ............................. 8,600 242,950
-----------
1,736,188
-----------
SOFTWARE--0.5%
Autodesk, Inc. .................................... 8,700 309,938
-----------
TELECOMMUNICATIONS--1.0%
AT&T Corp. ........................................ 14,500 485,750
Globalstar Telecommunications Ltd.+................ 311 16,405
Lucent Technologies, Inc. ......................... 100 5,913
Tele-Communications
International, Inc.
Series A+........................................ 8,000 103,000
-----------
611,068
-----------
TRANSPORTATION--3.2%
Burlington Northern
Santa Fe ........................................ 15,350 1,208,812
Illinois Central Corp. ............................ 2,500 83,125
Kansas City Southern Industries, Inc. ............. 4,100 211,150
Tidewater, Inc.+ .................................. 7,400 296,925
Union Pacific Corp. ............................... 3,600 229,500
-----------
2,029,512
-----------
TOTAL COMMON STOCK
(cost $54,483,460)................................. 56,665,106
-----------
</TABLE>
<PAGE>
17
[STYLE SELECT SERIES(SM) LOGO]
VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
PREFERRED STOCK--0.1%
BANKS--0.0%
Banc One Corp. Series C+ 3.50%.................. 200 $ 16,100
-----------
COMMUNICATION
EQUIPMENT--0.1%
AirTouch Communications, Inc. Class B 6.00%..... 600 16,725
AirTouch Communications, Inc. Class C 4.25%..... 400 18,200
-----------
34,925
-----------
TOTAL PREFERRED STOCK
(cost $51,047).................................. 51,025
-----------
TOTAL INVESTMENT SECURITIES--89.7%
(cost $54,534,507).............................. 56,716,131
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
- ------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM
SECURITIES--9.4%
Cayman Island Time Deposit
4.50% due 5/01/97........................... $3,602 $ 3,602,000
Federal Home Loan Mortgage Discount Notes
5.28% due 5/01/97........................... 2,315 2,315,000
-----------
TOTAL SHORT-TERM SECURITIES
(cost $5,917,000)............................. 5,917,000
-----------
REPURCHASE
AGREEMENT--1.0%
Agreement with State Street
Bank and Trust Co., bearing
2.00%, dated 4/30/97 to be
repurchased 5/01/97 in the
amount of $665,037
collaterized by $685,000
U.S. Treasury Note 5.875%,
due 10/31/98 approximate
aggregate value $681,789
(cost $665,000)............................. 665 665,000
-----------
TOTAL INVESTMENTS--
(cost $61,116,507)............................ 100.1% 63,298,131
Liabilities in excess of other assets........... (0.1) (91,070)
------- -----------
NET ASSETS-- 100.0% $63,207,061
------- -----------
------- -----------
</TABLE>
- ------------------
+ Non-income producing security
(1) ADR ('American Depositary Receipt')
See Notes to Financial Statements
<PAGE>
18
[STYLE SELECT SERIES(SM) LOGO]
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK--83.8%
ARGENTINA--1.2%
Banco Frances del Rio de la
Plata SA ADR(1) (Finance).............................. 560 $ 17,010
Perez Companies SA
(Multi-industry)....................................... 2,550 20,683
Telefonica de Argentina SA ADR(1) (Utilities)............ 4,620 153,615
YPF Sociedad Anonima ADR(1)
(Energy)............................................... 9,640 266,305
-----------
457,613
-----------
AUSTRALIA--4.9%
AAPC Ltd.
(Information & Entertainment).......................... 837,600 509,497
Australia & New Zealand
Banking Group Ltd. (Finance)........................... 2,000 12,774
Australian Gas Light Co., Ltd.
(Utilities)............................................ 3,000 17,196
Broken Hill Proprietary Co., Ltd. (Materials)............ 2,000 28,199
Coca-Cola Amatil Ltd.
(Consumer Staples)..................................... 18,000 205,772
Commonwealth Instalment
Receipt Trustee Ltd. (Finance)......................... 2,000 14,973
David Jones Ltd.
(Consumer Discretionary)............................... 8,400 11,005
FAI Insurances Ltd. (Finance)............................ 275,073 135,145
Lend Lease Corp., Ltd. (Finance)......................... 1,000 19,138
National Australia Bank Ltd.
(Finance).............................................. 7,200 98,542
News Corp., Ltd.
(Information & Entertainment).......................... 3,000 13,827
Normandy Mining Ltd. (Energy)............................ 162,366 198,795
Publishing & Broadcasting Ltd.
(Information & Entertainment).......................... 35,000 184,785
St. George Bank Ltd.
(Finance).............................................. 2,000 12,290
TABCORP Holdings Ltd.
(Information & Entertainment).......................... 3,000 14,821
Western Mining Corp.
Holdings Ltd. (Materials).............................. 3,000 17,781
Westpac Banking Corp., Ltd.
(Finance).............................................. 2,000 10,778
Woodside Petroleum Ltd.
(Energy)............................................... 3,000 23,863
Woolworths Ltd.
(Consumer Discretionary)............................... 117,200 345,485
-----------
1,874,666
-----------
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
AUSTRIA--0.8%
Boehler-Uddeholm AG (Materials).......................... 1,767 $ 127,494
VAE Eisenbahnsysteme AG
(Industrial & Commercial).............................. 1,776 171,878
-----------
299,372
-----------
BELGIUM--0.4%
Generale de Banque Belge Pour
l'Etranger SA (Finance)................................ 90 37,322
Kredietbank NV (Finance)................................. 250 97,378
UCB SA (Healthcare)...................................... 10 27,440
-----------
162,140
-----------
BRAZIL--1.0%
Centrais Eletricas Brasileiras
SA ADR+(1) (Utilities)................................. 1,000 22,519
Compania Brasileira de Distribuidora GDR(2)
(Industrial & Commercial).............................. 1,000 20,121
Compania Energetica de Minas ADR(1) (Materials).......... 1,000 45,508
Telecomunicacoes Brasileras SA
ADR(1)
(Information Technology)............................... 2,000 229,500
Usinas Siderurgicas de Minas
Gerais ADR(1) (Materials).............................. 6,000 70,519
-----------
388,167
-----------
CANADA--0.1%
Alcan Aluminum Ltd. (Materials).......................... 620 21,037
Royal Bank of Canada
(Finance).............................................. 310 12,360
-----------
33,397
-----------
CHILE--0.9%
Chilectra SA ADR(1) (Utilities).......................... 169 10,237
Compania de Telecomunicaciones de Chile SA(Utilities).... 480 15,540
Empresa Nacional de
Electricidad SA ADR(1)
(Utilities)............................................ 765 14,726
Enersis SA ADR(1) (Energy)............................... 2,994 94,311
Santa Isabel SA ADR(1)
(Consumer Discretionary)............................... 2,000 48,750
Sociedad Quimica Minera ADR(1) (Materials)............... 2,700 159,975
-----------
343,539
-----------
DENMARK--0.3%
Den Danske Bank+ (Finance)............................... 150 12,973
</TABLE>
<PAGE>
19
[STYLE SELECT SERIES(SM) LOGO]
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
DENMARK (CONTINUED)
ISS International Service
Systems A/S
(Industrial & Commercial).............................. 2,600 $ 76,926
Unidanmark A/S (Finance)................................. 200 9,893
-----------
99,792
-----------
FINLAND--0.9%
Huhtamaki Oy (Consumer Staples).......................... 5,224 226,523
Rauma Oy
(Industrial & Commercial).............................. 97 1,996
UPM-Kymmene Oy (Materials)............................... 4,230 96,794
-----------
325,313
-----------
FRANCE--6.0%
Accor SA
(Information & Entertainment).......................... 80 11,473
Alcatel Alsthom Compagnie
Generael D' Electricite
(Information Technology)............................... 310 34,471
AXA SA (Finance)......................................... 220 13,536
Bertrand Faure
(Consumer Discretionary)............................... 1,700 81,410
Canal Plus
(Information & Entertainment).......................... 70 12,641
Carrefour SA
(Consumer Discretionary)............................... 180 112,382
Chargeurs International SA+
(Consumer Discretionary)............................... 1,200 70,933
Cie Generale des Eaux
(Industrial & Commercial).............................. 2,960 412,316
Club Mediterranee SA
(Information & Entertainment).......................... 2,300 178,120
Compagine de St. Gobain
(Materials)............................................ 370 49,574
Elf Aquitaine SA (Energy)................................ 520 50,427
Guilbert SA
(Information Technology)............................... 120 18,710
L' Oreal (Consumer Staples).............................. 60 21,290
Lapeyre (Materials)...................................... 340 20,505
Legrand SA
(Information Technology)............................... 130 21,940
Louis Dreyfus Citrus+
(Consumer Staples)..................................... 7,200 258,689
Marine-Wendel SA
(Multi-industry)....................................... 1,100 114,024
Moet Hennessy Louis Vuitton
(Consumer Staples)..................................... 340 83,012
Pathe SA
(Information & Entertainment).......................... 50 11,677
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
FRANCE (CONTINUED)
Pinault Printemps Redoute
(Consumer Discretionary)............................... 170 $ 71,507
Primagaz Cie (Utilities)................................. 120 11,760
Sanofi SA (Healthcare)................................... 460 42,954
Schneider SA+
(Industrial & Commercial).............................. 640 36,076
Societe Generale+ (Finance).............................. 2,800 313,750
Sodexho SA
(Information & Entertainment).......................... 150 68,877
Television Francais (Utilities).......................... 625 60,289
Total SA, Series B (Energy).............................. 1,140 94,536
-----------
2,276,879
-----------
GERMANY--4.1%
Allianz Holdings AG (Finance)............................ 200 38,803
Ashanti Goldfields Ltd. GDR(2)
(Materials)............................................ 10,000 118,750
Ava Allgememeine
Handelsgesellschaft AG
(Consumer Discretionary)............................... 600 162,143
Bayer AG (Multi-industry)................................ 1,583 62,980
Bayerische Hypotheken-Und
Bank AG (Finance)...................................... 766 23,885
Bayerische Motoren Werke
(Consumer Discretionary)............................... 327 267,748
Bilfinger & Berger
(Industrial & Commercial).............................. 410 15,247
Commerzbank AG (Finance)................................. 6,540 175,415
Deutsche Bank AG (Finance)............................... 4,940 260,721
Deutsche Telekom AG (Information Technology)............. 557 12,087
Gehe AG
(Consumer Discretionary)............................... 1,590 105,767
Hoechst AG (Healthcare).................................. 430 16,884
Leica Camera AG+
(Information & Entertainment).......................... 5,100 156,080
Mannesmann AG
(Industrial & Commercial).............................. 40 15,729
Rhon-Klinikum AG
(Consumer Discretionary)............................... 200 25,869
SAP AG
(Information Technology)............................... 80 14,565
Schering AG (Healthcare)................................. 140 13,420
VEBA AG (Utilities)...................................... 1,380 71,080
Volkswagen AG
(Consumer Discretionary)............................... 30 19,073
-----------
1,576,246
-----------
</TABLE>
<PAGE>
20
[STYLE SELECT SERIES(SM) LOGO]
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
HONG KONG--3.3%
Cathay Pacific Airways Ltd.
(Industrial & Commercial).............................. 15,000 $ 23,333
CDL Hotels International Ltd.
(Information & Entertainment).......................... 340,000 148,132
China Hong Kong Photo
Products Holdings Ltd.
(Information & Entertainment).......................... 110,000 34,435
Dao Heng Bank Group Ltd.
(Finance).............................................. 4,000 19,002
First Pacific Co., Ltd.
(Industrial & Commercial).............................. 32,000 38,211
Guoco Group Ltd. (Finance)............................... 40,000 190,021
Henderson China Holdings Ltd. (Real Estate).............. 16,200 27,918
Hong Kong Land Holdings Ltd. ADR(1) (Finance)............ 163,000 339,040
Hopewell Holdings Ltd.
(Real Estate).......................................... 39,000 20,264
Hutchison Whampoa Ltd.
(Multi-industry)....................................... 12,000 89,073
Jardine Matheson Holdings Ltd. ADR(1)
(Industrial & Commercial).............................. 21,200 116,600
New World Development Co.,
Ltd. (Real Estate)..................................... 14,165 81,737
Swire Pacific Ltd. Class A
(Multi-Industry)....................................... 8,100 62,477
Wharf Holdings Ltd.
(Real Estate).......................................... 15,000 56,735
-----------
1,246,978
-----------
INDIA--0.4%
Hindalco Industries Ltd. GDR*(2) (Materials)............. 700 22,659
Tata Engineering & Locomotive
Ltd. GDR(2)
(Consumer Discretionary)............................... 9,450 115,526
-----------
138,185
-----------
INDONESIA--2.5%
PT Bank Internasional Indonesia alien (Finance).......... 7,000 5,041
PT Bank Bali alien (Finance)............................. 93,000 223,889
PT Bank Tiara Asia alien
(Finance).............................................. 194,000 235,514
PT Indonesian Satellite Corp. alien (Utilities).......... 130,000 358,436
PT Semen Cibinong alien (Materials) ..................... 51,000 150,587
-----------
973,467
-----------
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
ISRAEL--0.2%
Blue Square Israel Ltd. ADR(1)
(Consumer Staples)..................................... 4,300 $ 80,087
-----------
ITALY--2.4%
Banca Commerciale Italiana
SpA (Finance).......................................... 85,000 182,444
BCA Fideuram SpA (Finance)............................... 9,000 22,603
Brembo SpA
(Industrial & Commercial).............................. 16,000 172,880
Credito Italiano SpA (Finance)........................... 10,000 14,017
ENI SpA (Energy)......................................... 5,000 25,377
Gemina SpA+
(Consumer Staples)..................................... 12,600 5,085
Holding di Partecipazione
(Multi-industry)....................................... 179,000 97,572
Industrie Natuzzi SpA ADR(1)
(Consumer Discretionary)............................... 1,000 22,250
Istituto Mobiliare Italiano
(Finance).............................................. 3,000 25,555
Seat SpA+
(Information & Entertainment).......................... 7,000 2,142
Societa Italiana per il Gas SpA (Utilities).............. 5,000 13,156
STET (Industrial & Commercial)........................... 10,000 47,279
STET risp (Industrial & Commercial) ..................... 3,000 11,126
Telecom Italia SpA
(Information Technology)............................... 25,000 78,628
Zucchini SpA
(Information Technology)............................... 29,600 196,218
-----------
916,332
-----------
JAPAN--16.5%
Aiwa Co., Ltd.
(Information Technology)............................... 3,000 51,759
Alps Electric Co., Ltd.
(Information Technology)............................... 2,000 23,319
Amada Co., Ltd.
(Industrial & Commercial).............................. 4,000 29,905
Canon, Inc.
(Information Technology)............................... 8,000 189,703
Citizen Watch Co.
(Consumer Discretionary)............................... 3,000 21,578
Daiichi Pharmaceutical
(Healthcare)........................................... 4,000 64,285
Dainippon Screen MFG Co., Ltd.
(Information Technology)............................... 2,000 15,914
Daiwa House Industry Co., Ltd.
(Consumer Discretionary)............................... 5,000 55,934
DDI Corp. (Utilities).................................... 15 99,618
</TABLE>
<PAGE>
21
[STYLE SELECT SERIES(SM) LOGO]
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
JAPAN (CONTINUED)
East Japan Railway Co.
(Industrial & Commercial).............................. 12 $ 51,901
Fanuc Ltd.
(Information Technology)............................... 600 20,467
Fujitsu Denso
(Industrial & Commercial).............................. 2,000 60,503
Fujitsu Ltd.
(Information Technology)............................... 12,000 124,788
Hankyu Realty Co. (Real Estate).......................... 7,000 48,804
Hitachi Zosen Corp.
(Industrial & Commercial).............................. 4,000 13,897
Hitachi Ltd.+
(Information Technology)............................... 6,000 54,359
Imagineer Co., Ltd.+
(Information & Entertainment).......................... 3,600 114,578
Inax Corp.
(Consumer Staples)..................................... 2,000 12,416
Ito-Yokado Co., Ltd.
(Consumer Discretionary)............................... 2,000 95,955
Jusco Co., Ltd.
(Consumer Discretionary)............................... 2,000 61,449
KAO Corp. (Consumer Staples)............................. 2,000 23,319
Kawasaki Heavy Industries Ltd.
(Industrial & Commercial).............................. 14,000 55,257
Kokuyo Co., Ltd. (Materials)............................. 2,000 43,487
Komatsu Ltd.
(Industrial & Commercial).............................. 3,000 21,932
Komori Corp.
(Industrial & Commercial).............................. 2,000 42,699
Kuraray Co., Ltd. (Healthcare)........................... 4,000 35,294
Kyocera Corp.
(Information Technology)............................... 2,000 119,746
Makita Corp.
(Industrial & Commercial).............................. 2,000 27,416
Marubeni Corp.
(Consumer Discretionary)............................... 30,000 111,317
Marui Co., Ltd.
(Consumer Discretionary)............................... 4,000 65,860
Matsushita Electric Industrial
Co., Ltd.
(Information Technology)+.............................. 6,000 95,955
Matsushita Electric Works Ltd.
(Industrial & Commercial).............................. 19,000 193,091
Meiwa Estate Co.+ (Real Estate).......................... 2,600 43,014
Mitsubishi Corp.
(Consumer Discretionary)............................... 2,000 18,750
Mitsubishi Estate Co., Ltd.
(Real Estate).......................................... 5,000 63,024
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (CONTINUED)
Mitsubishi Heavy Industries Ltd.
(Industrial & Commercial).............................. 15,000 $ 99,027
Mitsui Fudosan Co., Ltd.
(Real Estate).......................................... 24,000 274,156
Miyota Co.
(Information Technology)............................... 13,000 153,622
Murata Manufacturing Co., Ltd.
(Information Technology)............................... 2,000 73,739
Mycal Corp.
(Consumer Discretionary)............................... 4,000 49,159
NEC Corp.
(Information Technology)............................... 25,000 305,274
Nippon Denso Co., Ltd.
(Industrial & Commercial).............................. 5,000 113,838
Nippon Steel Corp. (Materials)........................... 25,000 71,296
Nippon Telegraph & Telephone
Corp. (Utilities)...................................... 35 246,780
Nomura Securities Co., Ltd.
(Finance).............................................. 6,000 67,121
Orix Corp. (Finance)..................................... 3,000 151,495
Pioneer Electronic Corp.
(Industrial & Commercial).............................. 11,000 196,715
Rohm Co.
(Information Technology)............................... 1,000 77,520
Sankyo Co., Ltd. (Healthcare)............................ 8,000 214,283
Sekisui Chemical Co., Ltd.
(Materials)............................................ 5,000 48,056
Sekisui House Ltd.
(Consumer Discretionary)............................... 3,000 26,707
Sharp Corp.
(Information Technology)............................... 9,000 116,989
Shin-Etsu Chemical Co., Ltd.
(Materials)............................................ 3,000 60,503
Shiseido Co., Ltd.
(Consumer Staples)..................................... 20,000 286,761
Shohkoh Fund & Co.
(Finance).............................................. 600 140,859
Sony Corp.
(Information Technology)............................... 4,000 291,173
Sumitomo Corp.
(Industrial & Commercial).............................. 8,000 53,823
Sumitomo Electric Industries Ltd.
(Industrial & Commercial).............................. 12,000 162,603
Sumitomo Forestry Co., Ltd.
(Materials)............................................ 2,000 20,325
TDK Corp.
(Information Technology)............................... 2,000 144,168
Teijin Ltd.
(Consumer Discretionary)............................... 7,000 28,290
</TABLE>
<PAGE>
22
[STYLE SELECT SERIES(SM) LOGO]
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
JAPAN (CONTINUED)
Tokio Marine & Fire Insurance
Co., Ltd. (Finance).................................... 18,000 $ 175,838
Tokyo Electron Ltd.
(Information Technology)............................... 5,300 204,593
Tokyo Steel Manufacturing Co.
(Materials)............................................ 2,000 21,428
Toppan Printing Co., Ltd.
(Information & Entertainment).......................... 3,000 38,760
Toray Industries, Inc.
(Materials)............................................ 9,000 56,013
UNY Co., Ltd.
(Consumer Staples)..................................... 2,000 35,136
Yamanouchi Pharmaceutical Co., Ltd.
(Healthcare)........................................... 6,000 128,097
-----------
6,305,440
-----------
KOREA--0.7%
Kookmin Bank GDR*(2)
(Finance).............................................. 5,000 89,375
Korea Electric Power Corp. ADR(1)
(Utilities)............................................ 8,500 144,500
Korea Fund, Inc. (Finance)............................... 2,800 36,050
-----------
269,925
-----------
LUXEMBOURG--0.3%
Millicom International Cellular SA
(Information & Entertainment).......................... 2,700 122,850
-----------
MALAYSIA--1.5%
Berjaya Sports Toto Bhd
(Information & Entertainment).......................... 7,000 33,455
Commerce Asset Holding Bhd
(Finance).............................................. 3,000 17,923
Land & General Bhd+
(Multi-industry)....................................... 21,600 29,422
MBF Capital Bhd (Finance)................................ 15,000 22,224
Multi-Purpose Holdings Bhd
(Finance).............................................. 11,000 17,962
Renong Bhd+ (Multi-industry)............................. 18,000 24,661
Resorts World Bhd
(Information & Entertainment).......................... 5,000 18,420
TA Enterprise Bhd (Finance).............................. 144,000 168,042
Technology Resources
Industries Bhd
(Information Technology)............................... 77,000 141,071
Time Engineering Bhd+
(Information Technology)............................... 6,000 10,993
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
MALAYSIA (CONTINUED)
United Engineers Bhd
(Industrial & Commercial).............................. 11,000 $ 77,983
-----------
562,156
-----------
MEXICO--1.8%
Cemex SA de CV Class B
(Materials)............................................ 4,000 14,648
Cifra SA de CV ADR(1)
(Consumer Staples)..................................... 120,000 182,880
Gruma SA de CV ADR*(1)
(Consumer Staples)..................................... 610 11,751
Gruma SA de CV Class B+
(Consumer Staples)..................................... 2,000 9,639
Grupo Financiero Banamex-
Accival SA de CV
(Finance).............................................. 69,000 147,786
Grupo Industrial Maseca SA
de CV Class B
(Industrial & Commercial).............................. 9,000 8,789
Grupo Modelo SA de CV Class C
(Consumer Staples)..................................... 2,000 12,131
Kimberly-Clark de Mexico SA de CV (Materials)............ 6,526 24,227
Panamerican Beverages, Inc. Class A ADR(1)
(Consumer Staples)..................................... 7,400 214,600
Telefonos de Mexico SA ADR(1)
(Utilities)............................................ 1,000 41,250
-----------
667,701
-----------
NETHERLANDS--4.4%
ABN AMRO Holdings NV (Finance) .......................... 1,200 82,472
ASM Lithography Holding NV (Information Technology)...... 400 29,872
ASM Lithography Holding NV ADR+(1)
(Information Technology)............................... 1,300 102,863
Baan Co. NV+
(Information Technology)............................... 250 13,406
CSM NV (Consumer Staples)................................ 1,190 68,347
Elsevier NV
(Consumer Discretionary)............................... 13,550 216,989
Fortis Amev NV (Finance)................................. 1,030 38,857
Gucci Group NV (Consumer Discretionary) ................. 187 12,973
Hagemeyer NV
(Multi-industry)....................................... 270 23,490
ING Groep NV (Finance)................................... 3,490 137,035
</TABLE>
<PAGE>
23
[STYLE SELECT SERIES(SM) LOGO]
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
NETHERLANDS (CONTINUED)
Koninklijke Ahold NV (Consumer Discretionary)............ 820 $ 55,977
Koninlijke PTT Nederland NV (Utilities).................. 290 10,300
Nutricia Ver Bedrijuen NV (Consumer Staples)............. 140 21,241
Philips Electronics NV (Information Technology).......... 4,500 234,897
PolyGram NV
(Information & Entertainment).......................... 1,750 85,780
Royal Dutch Petroleum Co.
(Energy)............................................... 1,430 255,570
Unilever NV & PLC (Consumer Staples)..................... 510 99,183
Wolters Kluwer NV+
(Information & Entertainment).......................... 1,740 206,214
-----------
1,695,466
-----------
NEW ZEALAND--2.5%
Air New Zealand Ltd.+
(Information & Entertainment).......................... 74,000 213,920
Brierley Investment Ltd.+(Finance) ...................... 160,900 141,659
Carter Holt Harvey Ltd. (Consumer Staples)............... 4,000 8,873
CDL Hotels New Zealand Ltd.
(Information & Entertainment).......................... 575,000 211,265
Fletcher Challenge Ltd. forest shares +
(Multi-industry)....................................... 62,800 86,636
Fletcher Challenge Ltd. building shares+
(Multi-industry)....................................... 4,000 11,230
Kiwi Income Property Trust
(Real Estate).......................................... 275,000 211,612
Telecom Corp. of New Zealand Ltd.
(Information Technology)............................... 3,000 13,456
Wrightson Ltd.
(Multi-industry)....................................... 112,000 65,997
-----------
964,648
-----------
NORWAY--1.5%
Alvern Norway ASA+ (Information & Entertainment)......... 12,000 92,681
Norman Data Defense Systems+ (Industrial & Commercial)... 5,600 86,502
Norsk Hydro ASA (Energy)................................. 2,080 101,354
Orkla ASA
(Consumer Discretionary)............................... 1,420 119,045
Saga Petroleum ASA Class B (Energy)...................... 770 12,435
Smedvig ASA (Energy)..................................... 1,850 42,781
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
NORWAY (CONTINUED)
Smedvig ASA Class B (Energy)............................. 4,700 $ 110,550
-----------
565,348
-----------
PERU--0.4%
Backus & Johnston
(Consumer Staples)..................................... 187,000 162,090
Telefonica Peru SA ADR(1) (Industrial & Commercial)...... 346 8,304
-----------
170,394
-----------
PHILIPPINES--0.1%
Philippine Long Distance Telephone Co. (Utilities)....... 300 17,122
Philippine National Bank (Finance) ...................... 2,750 18,041
-----------
35,163
-----------
PORTUGAL--0.5%
Cimpor-Cimentos de Portugal SA (Materials)............... 7,100 152,741
Establecimentos Jeronimo Martins & Filho SA
(Consumer Discretionary)............................... 519 31,047
-----------
183,788
-----------
SINGAPORE--3.1%
City Developments Ltd. (Real Estate) .................... 2,000 16,166
DBS Land Ltd. (Real Estate).............................. 35,000 113,161
Development Bank of Singapore Ltd. alien (Finance)....... 1,000 11,883
FJ Benjamin Holdings Ltd.+ (Consumer Discretionary)...... 230,000 111,226
Fraser & Neave Ltd. (Consumer Staples)................... 3,000 21,762
Hour Glass Ltd. (Consumer Discretionary)................. 246,000 160,601
Keppel Bank (Finance).................................... 158,000 412,601
Keppel Corp., Ltd. (Industrial & Commercial)............. 7,500 32,643
Overseas Chinese Banking Corp., Ltd. alien (Finance)..... 1,000 11,675
Overseas Union Bank Ltd. alien (Finance)................. 5,000 32,815
Sembawang Shipyard Ltd. (Industrial & Commercial)........ 27,000 116,580
Singapore Land Ltd. (Real Estate)........................ 7,000 32,643
Singapore Press Holdings Ltd. alien (Information &
Entertainment)......................................... 2,000 37,029
United Industrial Corp., Ltd.
(Multi-industry)....................................... 13,000 9,789
</TABLE>
<PAGE>
24
[STYLE SELECT SERIES(SM) LOGO]
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
SINGAPORE (CONTINUED)
United Overseas Bank Ltd. alien (Finance)................ 6,000 $ 56,373
Wing Tai Holdings Ltd.
(Real Estate).......................................... 4,000 10,335
-----------
1,187,282
-----------
SOUTH AFRICA--0.6%
Energy Africa Ltd. GDR(2) (Energy)....................... 11,000 231,000
-----------
SPAIN--1.0%
Banco Bilbao Vizcaya SA
(Finance).............................................. 180 12,114
Banco de Santander SA
(Finance).............................................. 710 53,418
Banco Popular Espanol SA
(Finance).............................................. 120 25,444
Corporacion Bancaria
de Espana SA (Finance)................................. 270 12,041
Empresa Nacional
de Electricidad SA (Utilities)......................... 540 37,747
Gas Natural SDG SA (Utilities)........................... 240 50,969
Iberdrola SA (Utilities)................................. 5,610 63,312
Repsol SA (Energy)....................................... 694 29,098
Repsol SA ADR(1) (Energy)................................ 1,800 75,375
Telefonica de Espana SA
(Utilities)............................................ 946 24,231
-----------
383,749
-----------
SWEDEN--1.7%
ABB AB (Utilities)....................................... 1,300 15,826
Astra AB (Healthcare).................................... 3,150 125,081
Atlas Copco AB Class B
(Industrial & Commercial).............................. 740 18,348
Electrolux AB Class B (Consumer Discretionary)........... 6,860 393,514
Hennes & Mauritz AB
(Consumer Discretionary)............................... 360 52,086
Sandvik AB (Industrial & Commercial)..................... 1,500 36,904
-----------
641,759
-----------
SWITZERLAND--6.0%
Adia SA
(Industrial & Commercial).............................. 190 63,415
BBC Brown Boveri AG
(Industrial & Commercial).............................. 90 108,982
Ciba Specialty Chemicals AG+ (Materials)................. 80 6,892
Compagnie Financiere Richemont AG
(Industrial & Commercial).............................. 2,300 33,622
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
SWITZERLAND (CONTINUED)
CS Holding AG+ (Finance)................................. 210 $ 23,648
Julius Baer Holdings AG
(Finance).............................................. 339 424,296
Liechtenstein Global Trust AG+ (Finance)................. 400 219,795
Nestle SA+ (Consumer Staples)............................ 110 133,573
Novartis AG (Healthcare)................................. 280 368,876
Roche Holdings AG
(Healthcare)........................................... 36 304,050
SMH AG (Consumer Discretionary).......................... 730 413,507
Swiss Bank Corp. + (Finance)............................. 160 34,950
TAG Heuer International SA+ (Consumer Discretionary)..... 1,049 147,306
-----------
2,282,912
-----------
TAIWAN--0.5%
Compal Electronics, Inc.+ (Information Technology)....... 124,000 181,970
-----------
THAILAND--0.9%
Advanced Information Services PCL alien
(Information & Entertainment).......................... 1,000 6,508
Bangkok Bank PCL alien (Finance) ........................ 1,900 17,602
Industrial Finance Corp. of Thailand alien (Finance)..... 18,000 48,234
Matichon PCL alien (Information & Entertainment)......... 50,000 160,781
PTT Exploration & Production PCL alien (Energy).......... 700 8,950
Siam City Cement PCL alien (Materials)................... 4,300 115,226
-----------
357,301
-----------
UNITED KINGDOM--10.4%
Abbey National PLC (Finance)............................. 7,000 97,569
Argos PLC (Consumer Staples)............................. 6,000 62,723
Argyll Group PLC (Consumer Discretionary)................ 9,000 49,887
ASDA Group PLC (Consumer Staples)........................ 21,000 39,141
BG PLC (Energy).......................................... 6,000 17,310
British Petroleum Co. PLC
(Energy)............................................... 4,000 45,900
Cable & Wireless PLC (Information Technology)............ 10,000 77,006
Cadbury Schweppes PLC (Consumer Staples)................. 7,000 58,088
Caradon PLC (Materials).................................. 12,000 48,039
Centrica PLC+ (Utilities)................................ 6,000 5,494
</TABLE>
<PAGE>
25
[STYLE SELECT SERIES(SM) LOGO]
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
UNITED KINGDOM (CONTINUED)
Compass Group PLC (Industrial & Commercial).............. 3,000 $ 32,869
Cookson Group PLC
(Multi-industry)....................................... 58,400 205,394
Electrocomponents PLC (Information Technology)........... 2,000 12,804
Energy Group PLC+ (Utilities)............................ 16,340 129,767
Glaxo Wellcome PLC (Healthcare).......................... 7,000 137,617
Grand Metropolitan PLC (Information & Entertainment)..... 12,000 100,162
Guinness PLC (Consumer Staples).......................... 10,000 82,658
Hanson PLC (Industrial & Commercial)..................... 24,125 117,106
Inchcape PLC (Multi-industry)............................ 44,000 195,397
Kingfisher PLC (Consumer Staples) ....................... 10,000 108,266
Ladbroke Group PLC
(Information & Entertainment).......................... 6,000 22,366
Lonrho PLC (Multi-industry).............................. 38,000 84,992
Medeva PLC (Healthcare).................................. 11,300 55,126
Morgan Stanley Emerging Market Fund, Inc. (Finance)...... 12,600 201,600
National Westminster Bank PLC (Finance).................. 16,000 189,303
Orange PLC+ (Information & Entertainment)................ 114,000 399,092
Rank Group PLC
(Information & Entertainment).......................... 7,000 48,217
Reed International PLC (Information & Entertainment)..... 16,500 304,060
RTZ Corp. PLC (Materials)................................ 5,000 79,417
Shell Transport & Trading Co. (Energy)................... 8,000 141,459
Smith (David S) Holdings PLC (Materials)................. 5,000 18,152
Smithkline Beecham PLC (Healthcare)...................... 15,000 241,045
T & N PLC
(Consumer Discretionary)............................... 7,000 15,429
Tanjong PLC
(Information & Entertainment).......................... 10,000 36,243
Tesco PLC
(Consumer Discretionary)............................... 8,000 46,418
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (CONTINUED)
Thistle Hotels PLC
(Information & Entertainment).......................... 58,300 $ 156,853
Tomkins PLC (Consumer Staples)........................... 19,000 81,912
United News & Media PLC
(Information & Entertainment).......................... 8,000 97,763
Vickers PLC (Multi-industry)............................. 43,000 148,444
-----------
3,991,088
-----------
VENEZUELA--0.0%
Compania Anon Nacional Tele de Venezuela ADR(1)
(Utilities)............................................ 230 6,900
-----------
TOTAL COMMON STOCK
(cost $32,323,012)....................................... 31,999,013
-----------
PREFERRED STOCK--1.6%
FINLAND--0.1%
Nokia Corp. (Information Technology)..................... 520 32,438
-----------
GERMANY--1.1%
Friedrich Grohe AG (Industrial & Commercial)............. 730 218,561
GEA AG (Industrial & Commercial) ........................ 580 197,598
SAP AG (Information Technology).......................... 90 16,573
-----------
432,732
-----------
ITALY--0.4%
Instituto Finanziario (Finance).......................... 12,600 151,597
-----------
TOTAL PREFERRED STOCK
(cost $585,143).......................................... 616,767
-----------
OPTIONS--0.0%+(3)
JAPAN--0.0%
NIKKEI 225 Index,
Jun 1997/17700 Put..................................... 1,894 833
-----------
SINGAPORE--0.0%
DBS 50 Index, Jan 1998/403 Call.......................... 83 480
DBS 50 Index, Jan 1998/407 Call.......................... 80 415
DBS 50 Index, Jan 1998/407 Call.......................... 79 411
DBS 50 Index, Feb 1998/404 Call.......................... 23 160
-----------
1,466
-----------
</TABLE>
<PAGE>
26
[STYLE SELECT SERIES(SM) LOGO]
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS -- April 30, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
SHARES/WARRANTS/
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
- -------------------------------------------------------------------------------------------
<S> <C> <C>
OPTIONS (CONTINUED)
THAILAND--0.0%
SET 50 Index, Jan 1998/2 Call........................... 11,229 $ 1,037
SET 50 Index, Jan 1998/2 Call........................... 11,194 1,235
SET 50 Index, Jan 1998/2 Call........................... 11,164 449
SET 50 Index, Jan 1998/2 Call........................... 11,438 721
-----------
3,442
-----------
TOTAL OPTIONS (cost $44,596).............................. 5,741
-----------
WARRANTS--0.2%+
PORTUGAL--0.0%
Jeronimo Martins 9/15/03
(Consumer Staples).................................... 43 544
-----------
UNITED KINGDOM--0.2%
Morgan Stanley Group, Inc. 8/15/97 (Finance)............ 18,300 62,906
-----------
TOTAL WARRANTS (cost $68,103)............................. 63,450
-----------
CONVERTIBLE BONDS--0.4%
TAIWAN--0.3%
Compal Electronics zero coupon 2003*.................... $ 93 136,478
-----------
THAILAND--0.1%
Bangkok Bank PCL 3.25%
2004.................................................. 29 26,645
-----------
TOTAL CONVERTIBLE BONDS
(cost $131,115)......................................... 163,123
-----------
TOTAL INVESTMENT SECURITIES--86.0%
(cost $33,151,969)...................................... 32,848,094
-----------
SHORT-TERM SECURITIES--1.8%
Cayman Island Time Deposit
3.00% due 5/01/97
(cost $706,000)....................................... 706 706,000
-----------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENTS--9.1%
Agreement with State Street Bank and Trust Co.,
bearing 4.00%, dated 4/30/97 to be repurchased
5/01/97 in the amount of $2,434,270
collateralized by $2,475,000 U.S Treasury Note
5.75%, due 9/30/97 approximate aggregate value
$2,488,406
(cost $2,434,000)............................. $2,434 $ 2,434,000
Agreement with State Street Bank and Trust Co.,
bearing 5.30%, dated 4/30/97 to be repurchased
5/01/97 in the amount of $1,035,152
collateralized by $1,055,000 U.S Treasury Note
5.25%, due 7/31/98 approximate aggregate value
$1,057,902
(cost $1,035,000)............................. 1,035 1,035,000
-----------
TOTAL REPURCHASE AGREEMENTS
(cost $3,469,000)............................... 3,469,000
-----------
TOTAL INVESTMENTS--
(cost $37,326,969).............................. 96.9% 37,023,094
Other assets less liabilities................... 3.1 1,189,691
-------------- -----------
NET ASSETS--.................................... 100.0% $38,212,785
-------------- -----------
-------------- -----------
</TABLE>
- ------------------
+ Non-income producing security
* Resale restricted to qualified institutional buyers
(1) ADR ('American Depositary Receipt')
(2) GDR ('Global Depositary Receipt')
(3) Fair valued security, see Note 2
See Notes to Financial Statements
<PAGE>
27
[STYLE SELECT SERIES(SM) LOGO]
NOTES TO FINANCIAL STATEMENTS -- April 30, 1997 (unaudited)
Note 1. Organization
Style Select Series, Inc. (the 'Fund') is an open-end non-diversified management
investment company organized as a Maryland corporation on July 3, 1996. The Fund
is managed by SunAmerica Asset Management Corp. ('SunAmerica'), an indirect
wholly-owned subsidiary of SunAmerica Inc. The assets of each Portfolio are
normally allocated among at least three investment advisers (each, an
'Adviser'), each of which will be independently responsible for advising its
respective portion of the Portfolio's assets. The Fund currently offers four
separate investment portfolios (each, a 'Portfolio'): Aggressive Growth
Portfolio, Mid-Cap Growth Portfolio, Value Portfolio and International Equity
Portfolio. The investment objectives for each of the Portfolios are as follows:
Aggressive Growth seeks long-term growth of capital by investing primarily in
equity securities which have a market capitalization of less than $1 billion.
Mid-Cap Growth seeks long-term growth of capital by investing primarily in
equity securities which have a market capitalization of $1 billion to $5
billion.
Value seeks long-term growth of capital by investing primarily in equity
securities using a 'value' style of investing.
International Equity seeks long-term growth of capital by investing in equity
securities of issuers in countries other than the United States.
Each Portfolio currently offers three classes of shares. Class A shares are
offered at net asset value per share plus an initial sales charge. Class B
shares are offered without an initial sales charge, although a declining
contingent sales charge may be imposed on redemptions made within six years of
purchase. Additionally, any purchases of Class A shares in excess of $1,000,000
will be subject to a contingent deferred sales charge on redemptions made within
one year of purchase. Class B shares of each Portfolio will convert
automatically to Class A shares on the first business day of the month after
seven years from the issuance of such Class B shares and at such time will be
subject to the lower distribution fee applicable to Class A shares. Class C
shares are offered at net asset value, although they may be subject to a
contingent deferred sales charge on redemptions made within one year of
purchase. Each class of shares bears the same voting, dividend, liquidation and
other rights and conditions and each makes distribution and account maintenance
and service fee payments under the distribution plans pursuant to Rule 12b-1
under the Investment Company Act of 1940 (the '1940 Act'), except that Class B
shares and Class C shares are subject to higher distribution fee rates.
Note 2. Significant Accounting Policies
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from these estimates. The following is a summary of the
significant accounting policies followed by the Portfolios in the preparation of
their financial statements:
SECURITY VALUATIONS: Securities that are actively traded in the over-the-counter
market, including listed securities for which the primary market is believed by
the Adviser to be over-the-counter, are valued at the quoted bid price provided
by principal market makers. Securities listed on the New York Stock Exchange
('NYSE') or other national securities exchanges, are valued on the basis of the
last sale price on the exchange on which they are primarily traded. If there is
no sale on that day, then securities are valued at the closing bid price on the
NYSE or other primary exchange for that day. However, if the last sale price on
the NYSE is different than the last sale price on any other exchange, the NYSE
price is used. Securities that are traded on foreign exchanges are ordinarily
valued at the last quoted sales price available before the time when the assets
are valued. If a security's price is available from more than one foreign
exchange, a Portfolio uses the
<PAGE>
28
[STYLE SELECT SERIES(SM) LOGO]
NOTES TO FINANCIAL STATEMENTS -- April 30, 1997 (unaudited) -- (continued)
exchange that is the primary market for the security. Values of portfolio
securities primarily traded on foreign exchanges are already translated into
U.S. dollars when received from a quotation service. Options traded on national
securities exchanges are valued as of the close of the exchange on which they
are traded. Futures and options traded on commodities exchanges are valued at
their last sale price as of the close of such exchange. The Portfolios may make
use of a pricing service in the determination of their net asset values.
Securities for which market quotations are not readily available and other
assets are valued at fair value as determined pursuant to procedures adopted in
good faith by the Directors. Short-term investments which mature in less than 60
days are valued at amortized cost, if their original maturity was 60 days or
less, or by amortizing their value on the 61st day prior to maturity, if their
original term to maturity exceeded 60 days.
REPURCHASE AGREEMENTS: The Portfolios, along with other affiliated registered
investment companies, may transfer uninvested cash balances into a single joint
account, the daily aggregate balance of which is invested in one or more
repurchase agreements collateralized by U.S. Treasury or federal agency
obligations. The Portfolios' custodian takes possession of the collateral
pledged for investments in such repurchase agreements. The underlying collateral
is valued daily on a mark to market basis to ensure that the value, at the time
the agreement is entered into, is equal to at least 102% of the repurchase
price, including accrued interest. In the event of default of the obligation to
repurchase, a Portfolio has the right to liquidate the collateral and apply the
proceeds in satisfaction of the obligation. If the seller defaults and the value
of the collateral declines or if bankruptcy proceedings are commenced with
respect to the seller of the security, realization of the collateral by the
Portfolio may be delayed or limited.
Pursuant to exemptive relief granted by the Securities and Exchange Commission,
the Portfolios are permitted to participate in joint repurchase agreement
transactions with other affiliated mutual funds.
As of April 30, 1997, the Aggressive Growth Portfolio had a 2.2% undivided
interest which represented $1,332,000 in principal amount in a joint repurchase
agreement with PaineWebber, Inc. As of such date, the repurchase agreement in
the joint account and the collateral therefore were as follows:
PaineWebber, Inc. Repurchase Agreement 5.30% dated 4/30/97, in the principal
amount of $60,768,000 repurchase price $60,776,946 due 5/01/97 collateralized by
$60,050,000 U.S. Treasury Notes 6.50% due 5/31/01, approximate aggregate value
$62,001,625.
SECURITIES TRANSACTIONS, INVESTMENT INCOME, EXPENSES, DIVIDENDS AND
DISTRIBUTIONS TO SHAREHOLDERS: Securities transactions are recorded on a trade
date basis. Realized gains and losses on sales of investments are calculated on
the identified cost basis. Interest income is recorded on the accrual basis;
dividend income is recorded on the ex-dividend date. Portfolios investing in
foreign securities may be subject to taxes imposed by countries in which it
invests. Such taxes are generally based on either income or gains earned or
repatriated. The Portfolio accrues such taxes when the related income is earned.
The Portfolios amortize premiums and accrue discounts including original issue
discounts as required for federal income tax purposes.
Net investment income, other than class specific expenses and realized and
unrealized gains and losses, is allocated daily to each class of shares based
upon the relative net asset value of outstanding shares of each class of shares
at the beginning of the day (after adjusting for the current capital shares
activity of the respective class).
Expenses common to all Portfolios, not directly related to individual
Portfolios, are allocated among the Portfolios based upon their relative net
asset value or other appropriate methods.
The Portfolios record dividends and distributions to their shareholders on the
ex-dividend date. The amount of dividends and distributions from net investment
income and net realized capital gains are determined and presented in accordance
with federal income tax regulations, which may differ from generally accepted
accounting principles. These 'book/tax' differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature, such amounts are reclassified within the
<PAGE>
29
[STYLE SELECT SERIES(SM) LOGO]
NOTES TO FINANCIAL STATEMENTS -- April 30, 1997 (unaudited) -- (continued)
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification. Dividends from net investment
income and capital gain distributions, if any, are paid annually.
FOREIGN CURRENCY TRANSACTION: The books and records of the Fund are maintained
in U.S. dollars. Assets and liabilities denominated in foreign currencies and
commitments under forward foreign currency contracts are translated into U.S.
dollars at the mean of the quoted bid and asked prices of such currencies
against the U.S. dollar.
The Fund does not isolate that portion of the results of operations arising as a
result of changes in the foreign exchange rates from the changes in the market
prices of securities held at fiscal year-end. Similarly, the Fund does not
isolate the effect of changes in foreign exchange rates from the changes in the
market prices of portfolio securities sold during the year.
Realized foreign exchange gains and losses on other assets and liabilities and
change in unrealized foreign exchange gains and losses on other assets and
liabilities include foreign exchange gains and losses from currency gains or
losses between the trade and settlement dates of securities transactions, the
difference between the amounts of interest, dividends and foreign withholding
taxes recorded on the Portfolio's books and the U.S. dollar equivalent amounts
actually received or paid and changes in the unrealized foreign exchange gains
and losses relating to other assets and liabilities arising as a result of
changes in the exchange rate.
OPTIONS: The premium paid by a Portfolio for the purchase of a call or a put
option is included in the Portfolio's Statement of Assets and Liabilities as an
investment and subsequently marked to market to reflect the current market value
of the option. When a Portfolio writes a call or a put option, an amount equal
to the premium received by the Portfolio is included in the Portfolio's
Statement of Assets and Liabilities as a liability and is subsequently marked to
market to reflect the current market value of the option written. If an option
which the Portfolio has written either expires on its stipulated expiration
date, or if the Portfolio enters into a closing purchase transaction, the
Portfolio realizes a gain (or loss if the cost of a closing purchase transaction
exceeds the premium received when the option was written) without regard to any
unrealized gain or loss on the underlying security, and the liability related to
such option is extinguished. If a call option which the Portfolio has written is
exercised, the Portfolio realizes a capital gain or loss from the sale of the
underlying security and the proceeds from such sale are increased by the premium
originally received. If a put option which the Portfolio has written is
exercised, the amount of the premium originally received reduces the cost basis
of the security which the Portfolio purchased upon exercise of the option.
ORGANIZATIONAL EXPENSES: Costs incurred by SAAMCo in connection with the
organization of the Fund amounted to $20,498 for each Portfolio. These costs are
being amortized on a straight line basis by the Portfolios over a period not to
exceed 60 months from the date the Portfolios commenced operations.
Note 3. Investment Advisory and Management Agreement, Distribution Agreement and
Service Agreement
The Fund, on behalf of each Portfolio, has entered into an Investment Advisory
and Management Agreement (the 'Agreement') with SunAmerica, an indirect
wholly-owned subsidiary of SunAmerica Inc. Under the Agreement, SunAmerica
provides continuous supervision of the respective Portfolios and administers
their corporate affairs, subject to general review by the Board of Directors
(the 'Directors'). In connection therewith, SunAmerica furnishes the Fund with
office facilities, maintains certain of the Fund's books and records, and pays
for the salaries and expenses of all personnel, including officers of the Fund
who are employees of SunAmerica and its affiliates. The annual rate of the
investment advisory and management fee payable by each Portfolio to SunAmerica
as full compensation for services and facilities furnished to the Fund is as
follows: 1.00% of the average daily net assets of the Aggressive Growth, Mid-Cap
Growth and Value Portfolios, respectively, and 1.10% of the average daily net
assets of the International Equity Portfolio.
<PAGE>
30
[STYLE SELECT SERIES(SM) LOGO]
NOTES TO FINANCIAL STATEMENTS -- April 30, 1997 (unaudited) -- (continued)
The organizations described below act as Advisers to the Fund pursuant to
Subadvisory Agreements with SunAmerica. Under the Subadvisory Agreements, the
Advisers manage the investment and reinvestment of the assets of the respective
Portfolios for which they are responsible. Each of the following Advisers is
independent of SunAmerica (with the exception of the Aggressive Growth
Portfolio, for which SunAmerica acts as an Adviser) and discharges its
responsibilities subject to the policies of the Directors and the oversight and
supervision of SunAmerica, which pays the Advisers' fees. The Advisers for the
Aggressive Growth Portfolio are Janus Capital Corporation; SunAmerica; and
Warburg, Pincus Counsellors, Inc. The Advisers for the Mid-Cap Growth Portfolio
are Miller Anderson & Sherrerd, LLP; Pilgrim Baxter & Associates, Ltd.; and T.
Rowe Price Associates, Inc. The Advisers for the Value Portfolio are Davis
Selected Advisers, L.P.; Neuberger & Berman, LLC.; and Strong Capital
Management, Inc. The Advisers for the International Equity Portfolio are Rowe
Price-Fleming International, Inc.; Strong Capital Management, Inc.; and Warburg,
Pincus Counsellors, Inc. Each Adviser is paid monthly by SunAmerica a fee equal
to a percentage of the average daily net assets of the Portfolio allocated to
the Adviser. For the period ended April 30, 1997, SunAmerica paid the Advisers
for each Portfolio the following, expressed as an annual percentage of the
average daily net assets of each Portfolio: Aggressive Growth Portfolio, .37%;
Mid-Cap Growth Portfolio, .50%; Value Portfolio, .48%; and International Equity
Portfolio, .63%.
SunAmerica has voluntarily agreed to waive fees or reimburse expenses, if
necessary, to keep annual operating expenses at or below the following
percentages of each Portfolio's average net assets: Aggressive Growth Portfolio,
Mid-Cap Growth Portfolio and Value Portfolio 1.90% for Class A shares and 2.55%
for Class B shares and Class C shares, respectively. International Equity
Portfolio 2.15% for Class A shares and 2.80% for Class B shares and Class C
shares. SunAmerica also may voluntarily waive or reimburse additional amounts to
increase the investment return to a Portfolio's investors. Further, any waivers
or reimbursements made by SunAmerica with respect to a Portfolio are subject to
recoupment from that Portfolio within the following two years, provided that the
Portfolio is able to effect such payment to SunAmerica and remain in compliance
with the foregoing expense limitations.
For the period November 19, 1996 (date of commencement of operations) to April
30, 1997, SAAMCo has agreed to voluntarily reimburse expenses as follows:
<TABLE>
<CAPTION>
MANAGEMENT FEES OTHER EXPENSES
REIMBURSED REIMBURSED
--------------- --------------
<S> <C> <C>
Aggressive Growth A...... $23,405 $--
Aggressive Growth B...... 7,700 4,534
Aggressive Growth C...... 244 2,130
Mid-Cap Growth A......... 24,046 --
Mid-Cap Growth B......... 8,856 4,490
Mid-Cap Growth C......... 251 2,156
Value A.................. 26,936 --
Value B.................. 10,636 4,663
Value C.................. 381 2,157
International Equity A... 31,546 --
International Equity B... 8,476 5,513
International Equity C... 2,178 248
</TABLE>
The Fund, on behalf of each Portfolio, has entered into a Distribution Agreement
with SunAmerica Capital Services, Inc. ('SACS' or the 'Distributor'), an
indirect wholly-owned subsidiary of SunAmerica Inc. Each Portfolio has adopted a
Distribution Plan (the 'Plan') in accordance with the provisions of Rule 12b-1
under the Act. Rule 12b-1 under the Act permits an investment company directly
or indirectly to pay expenses associated with the distribution of its shares in
accordance with a plan adopted by the investment company's Board of Directors.
Pursuant to such rule, the Directors and the shareholders of each class of
shares of each
<PAGE>
31
[STYLE SELECT SERIES(SM) LOGO]
NOTES TO FINANCIAL STATEMENTS -- April 30, 1997 (unaudited) -- (continued)
Portfolio have adopted Distribution Plans hereinafter referred to as the 'Class
A Plan,' the 'Class B Plan' and the 'Class C Plan.' In adopting the Class A
Plan, the Class B Plan and the Class C Plan, the Directors determined that there
was a reasonable likelihood that each such Plan would benefit the Fund and the
shareholders of the respective class. The sales charge and distribution fees of
a particular class will not be used to subsidize the sale of shares of any other
class.
Under the Class A Plan, the Distributor receives payments from a Portfolio at an
annual rate of up to 0.10% of average daily net assets of such Portfolio's Class
A shares to compensate the Distributor and certain securities firms for
providing sales and promotional activities for distributing that class of
shares. Under the Class B and Class C Plans, the Distributor may receive
payments from a Portfolio at the annual rate of up to 0.75% of the average daily
net assets of such Portfolio's Class B and Class C shares, respectively, to
compensate the Distributor and certain securities firms for providing sales and
promotional activities for distributing each such class of shares. The
distribution costs for which the Distributor may be reimbursed out of such
distribution fees include fees paid to broker-dealers that have sold Portfolio
shares, commissions, and other expenses such as those incurred for sales
literature, prospectus printing and distribution and compensation to
wholesalers. It is possible that in any given year the amount paid to the
Distributor under the Class A Plan, Class B Plan or Class C Plan may exceed the
Distributor's distribution costs as described above. The Distribution Plans also
provide that each class of shares of each Portfolio may also pay the Distributor
an account maintenance and service fee up to an annual rate of 0.25% of the
aggregate average daily net assets of such class of shares for payments to
broker-dealers for providing continuing account maintenance. Accordingly, for
the period ended April 30, 1997, SACS received fees (see Statement of
Operations) based upon the aforementioned rates.
SACS receives sales charges on each Portfolio's Class A shares, portions of
which are reallowed to affiliated broker-dealers and non-affiliated
broker-dealers. SACS also receives the proceeds of contingent deferred sales
charges paid by investors in connection with certain redemptions of each
Portfolio's Class B shares and Class C shares. SACS has advised the Portfolios
that for the period November 19, 1996 (date of commencement of operations) to
April 30, 1997, the proceeds received from Class A sales (and paid out to
affiliated and non-affiliated broker-dealers), Class B and Class C redemptions
are as follows:
<TABLE>
<CAPTION>
CLASS B
CLASS A ----------- CLASS C
---------------------------------------- CONTINGENT ---------------
AFFILIATED NON-AFFILIATED DEFERRED CONTINGENT
SALES BROKER- BROKER- SALES DEFERRED
CHARGES DEALERS DEALERS CHARGES SALES CHARGES
-------- ---------- -------------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
Aggressive Growth Portfolio...... $604,328 $ 244,388 $283,855 $ 2,368 $ --
Mid-Cap Growth Portfolio......... 355,402 132,061 178,535 1,634 --
Value Portfolio.................. 717,073 273,496 351,147 1,581 --
International Equity Portfolio... 315,089 94,682 177,689 1,487 --
</TABLE>
<PAGE>
32
[STYLE SELECT SERIES(SM) LOGO]
NOTES TO FINANCIAL STATEMENTS -- April 30, 1997 (unaudited) -- (continued)
The Fund, on behalf of each Portfolio, has entered into a Service Agreement with
SunAmerica Fund Services, Inc. ('SAFS'), an indirect wholly-owned subsidiary of
SunAmerica Inc. Under the Service Agreement, SAFS performs certain shareholder
account functions by assisting the Portfolios' transfer agent in connection with
the services that it offers to the shareholders of the Portfolios. The Service
Agreement, which permits the Portfolios to compensate SAFS for services rendered
based upon an annual rate of 0.22% of average daily net assets, is approved
annually by the Directors. For the period November 19, 1996 (date of
commencement of operations) to April 30, 1997, the Portfolios incurred the
following expenses which are included in transfer agent fees in the Statement of
Operations, to compensate SAFS pursuant to the terms of the Service Agreement.
<TABLE>
<CAPTION>
PAYABLE
EXPENSE APRIL 30, 1997
----------------------------- -----------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Aggressive Growth Portfolio...... $23,501 $ 7,819 $ 244 $ 5,322 $ 2,952 $ 179
Mid-Cap Growth Portfolio......... 19,000 6,619 168 3,675 2,416 128
Value Portfolio.................. 23,193 9,329 334 5,907 3,885 256
International Equity Portfolio... 19,945 5,758 166 4,050 2,237 133
</TABLE>
Note 4. Purchases and Sales of Investment Securities
The aggregate cost of purchase and proceeds from sales and maturities of
investments (excluding U.S. Government securities and short-term investments)
for the period November 19, 1996 (date of commencement of operations) to April
30, 1997 were as follows:
<TABLE>
<CAPTION>
AGGRESSIVE MID-CAP INTERNATIONAL
GROWTH GROWTH VALUE EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Aggregate purchases... $65,515,534 $43,117,207 $58,618,636 $35,968,499
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Aggregate sales....... $21,389,227 $ 7,443,735 $ 4,239,679 $ 2,843,327
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
Note 5. Portfolio Securities
The Portfolios intend to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and distribute all of its
taxable income, including any net realized gain on investments, to its
shareholders. Therefore, no federal tax provision is required.
The amounts of aggregate unrealized gain (loss) and the cost of investment
securities, including short-term securities, were as follows:
<TABLE>
<CAPTION>
AGGRESSIVE MID-CAP INTERNATIONAL
GROWTH GROWTH VALUE EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Cost.................... $52,020,341 $39,463,936 $61,116,507 $37,326,969
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Appreciation............ $ 2,366,134 $ 1,103,307 $ 3,233,615 $ 1,572,564
Depreciation............ (1,968,396) (3,228,942) (1,051,991) (1,876,439)
----------- ----------- ----------- -----------
Unrealized appreciation
(depreciation)--net... $ 397,738 $(2,125,635) $ 2,181,624 $ (303,875)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
<PAGE>
33
[STYLE SELECT SERIES(SM) LOGO]
NOTES TO FINANCIAL STATEMENTS -- April 30, 1997 (unaudited) -- (continued)
Note 6. Open Forward Currency Contracts
At April 30, 1997, the International Equity Portfolio engaged in the trading of
forward foreign currency exchange contracts ('forward contracts') in order to
hedge against changes in future foreign exchange rates and enhance return.
Forward contracts involve elements of market risk in excess of the amount
reflected in the Statement of Assets and Liabilities. The Portfolio bears the
risk of an unfavorable change in the foreign exchange rate underlying the
forward contracts. International Equity Portfolio held the following forward
currency contracts at April 30, 1997.
<TABLE>
<CAPTION>
GROSS
CONTRACT IN DELIVERY UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
- --------------- -------------- -------- -----------
<S> <C> <C> <C>
*DEM 241,478 USD 150,000 7/23/97 $ 9,721
JPY 25,702,500 USD 230,000 10/24/97 22,093
JPY 47,907,500 USD 433,454 10/24/97 45,932
*JPY 18,407,500 USD 166,546 10/24/97 17,649
-----------
95,395
-----------
<CAPTION>
GROSS
UNREALIZED
DEPRECIATION
-----------
<S> <C> <C> <C>
USD 405,400 GBP 250,000 6/30/97 $ (651)
*USD 144,327 DEM 241,478 7/23/97 (4,048)
*USD 154,643 JPY 18,407,500 10/24/97 (5,745)
-----------
(10,444)
-----------
Net Appreciation........................... $ 84,951
-----------
-----------
</TABLE>
* Represents open forward foreign currency contracts and offsetting open forward
foreign currency contracts that do not have additional market risk but have
continued counterparty settlement risk.
DEM --Deutsche Mark
GBP --Great Britain Pound
JPY --Japanese Yen
USD --United States Dollar
<PAGE>
34
[STYLE SELECT SERIES(SM) LOGO]
NOTES TO FINANCIAL STATEMENTS -- April 30, 1997 (unaudited) -- (continued)
Note 7. Capital Share Transactions
At April 30, 1997, SunAmerica Inc. owned 1,200,000 Class A shares in each
Aggressive Growth, Mid-Cap Growth, Value and International Equity Portfolios
representing 29.34%, 35.30%, 25.71% and 39.19% of total net assets,
respectively.
Transactions in shares of each class of each series were as follows:
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH PORTFOLIO
-----------------------------------------------------------------------------
CLASS A CLASS B CLASS C
------------------------ ------------------------ ---------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
NOVEMBER 19, 1996* NOVEMBER 19, 1996 MARCH 6, 1997
THROUGH THROUGH THROUGH
APRIL 30, 1997 APRIL 30, 1997 APRIL 30, 1997
------------------------ ------------------------ ---------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------- ----------- --------- ----------- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold............ 2,577,461 $32,809,583 1,556,525 $20,069,772 93,888 $1,187,829
Reinvested dividends... -- -- -- -- -- --
Shares redeemed........ (78,114) (1,001,178) (56,395) (660,740) (917) (11,637)
--------- ----------- --------- ----------- ------- ----------
Net increase........... 2,499,347 $31,808,405 1,500,130 $19,409,032 92,971 $1,176,192
--------- ----------- --------- ----------- ------- ----------
--------- ----------- --------- ----------- ------- ----------
<CAPTION>
MID-CAP GROWTH PORTFOLIO
-----------------------------------------------------------------------------
CLASS A CLASS B CLASS C
------------------------ ------------------------ ---------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
NOVEMBER 19, 1996* NOVEMBER 19, 1996 MARCH 6, 1997
THROUGH THROUGH THROUGH
APRIL 30, 1997 APRIL 30, 1997 APRIL 30, 1997
------------------------ ------------------------ ---------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------- ----------- --------- ----------- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold............ 2,542,032 $31,032,701 1,472,651 $17,333,404 78,106 $ 875,571
Reinvested dividends... -- -- -- -- -- --
Shares redeemed........ (631,667) (7,271,410) (57,382) (644,724) (269) (2,919)
--------- ----------- --------- ----------- ------- ----------
Net increase........... 1,910,365 $23,761,291 1,415,269 $16,688,680 77,837 $ 872,652
--------- ----------- --------- ----------- ------- ----------
--------- ----------- --------- ----------- ------- ----------
<CAPTION>
VALUE PORTFOLIO
-----------------------------------------------------------------------------
CLASS A CLASS B CLASS C
------------------------ ------------------------ ---------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
NOVEMBER 19, 1996* NOVEMBER 19, 1996 MARCH 6, 1997
THROUGH THROUGH THROUGH
APRIL 30, 1997 APRIL 30, 1997 APRIL 30, 1997
------------------------ ------------------------ ---------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------- ----------- --------- ----------- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold............ 2,909,491 $37,637,259 1,925,436 $25,413,944 139,015 $1,841,152
Reinvested dividends... -- -- -- -- -- --
Shares redeemed........ (273,310) (3,689,160) (26,464) (345,611) (152) (1,978)
--------- ----------- --------- ----------- ------- ----------
Net increase........... 2,636,181 $33,948,099 1,898,972 $25,068,333 138,863 $1,839,174
--------- ----------- --------- ----------- ------- ----------
--------- ----------- --------- ----------- ------- ----------
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO
-----------------------------------------------------------------------------
CLASS A CLASS B CLASS C
------------------------ ------------------------ ---------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
NOVEMBER 19, 1996* NOVEMBER 19, 1996 MARCH 6, 1997
THROUGH THROUGH THROUGH
APRIL 30, 1997 APRIL 30, 1997 APRIL 30, 1997
------------------------ ------------------------ ---------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------- ----------- --------- ----------- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold............ 2,391,485 $29,937,892 1,160,928 $14,457,262 87,909 $1,088,635
Reinvested dividends... -- -- -- -- -- --
Shares redeemed........ (549,549) (6,870,565) (26,001) (323,542) -- --
--------- ----------- --------- ----------- ------- ----------
Net increase........... 1,841,936 $23,067,327 1,134,927 $14,133,720 87,909 $1,088,635
--------- ----------- --------- ----------- ------- ----------
--------- ----------- --------- ----------- ------- ----------
</TABLE>
*Date of commencement of operations
<PAGE>
35
[STYLE SELECT SERIES(SM) LOGO]
NOTES TO FINANCIAL STATEMENTS -- April 30, 1997 (unaudited) -- (continued)
Note 8. Directors' Retirement Plan
The Directors (and Trustees) of the SunAmerica Family of Mutual Funds have
adopted the SunAmerica Disinterested Trustees' and Directors' Retirement Plan
(the 'Retirement Plan') effective January 1, 1993 for the unafilliated
Directors. The Retirement Plan provides generally that if a disinterested
Director who has at least 10 years of consecutive service as a Disinterested
Director of any of the SunAmerica mutual funds (an 'Eligible Director') retires
after reaching age 60 but before age 70 or dies while a Director, such person
will be eligible to receive a retirement or death benefit from each SunAmerica
mutual fund with respect to which he or she is an Eligible Director. As of each
birthday, prior to the 70th birthday, but in no event for a period greater than
10 years, each Eligible Director will be credited with an amount equal to 50% of
his or her regular fees (excluding committee fees) for services as a
Disinterested Director of each SunAmerica mutual fund for the calendar year in
which such birthday occurs. In addition, an amount equal to 8.5% of any amounts
credited under the preceding clause during prior years, is added to each
Eligible Director's account until such Eligible Trustee reaches his or her 70th
birthday. An Eligible Director may receive any benefits payable under the
Retirement Plan, at his or her election, either in one lump sum or in up to
fifteen annual installments. As of April 30, 1997, Aggressive Growth Portfolio,
Mid-Cap Growth Portfolio, Value Portfolio and International Equity Portfolio had
accrued $297, $251, $266 and $249, respectively, for the Retirement Plan, which
is included in accrued expenses on the Statement of Assets and Liabilities, and
for the period from November 19, 1996 (date of commencement of operations) to
April 30, 1997 expensed $297, $251, $266, and $249, respectively, for the
Retirement Plan, which is included in Directors' fees and expenses on the
Statement of Operations.
<PAGE>
[This page intentionally left blank]
<PAGE>
Style Select Series
The SunAmerica Center
733 Third Avenue
New York, NY 10017-3204
1-800-858-8850
AGGRESSIVE [Logo of [Logo of [Logo of
GROWTH Janus] SunAmerica Warburg
PORTFOLIO Asset Management] Pincus]
MID-CAP [Logo of [Logo of [Logo of
GROWTH Miller Anderson PBHG] T.Rowe Price]
PORTFOLIO & Sherrerd, LLP]
VALUE [Logo of [Logo of [Logo of
PORTFOLIO Davis Selected Neuberger & Strong]
Advisers] Berman, LLC]
INTERNATIONAL [Logo of [Logo of [Logo of
EQUITY Rowe Price-Fleming Strong] Warburg
PORTFOLIO International, Inc.] Pincus]
This report is submitted solely for the general information of shareholders of
the Fund. Distribution of this report to persons other than shareholders of the
Fund is authorized only in connection with a currently effective prospectus,
setting forth details of the Fund, which must precede or accompany this report.
SSANN
