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MAY 1, 2000 PROSPECTUS
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The information in this prospectus is not complete and may be changed. We may
not sell these securities until the registration statement filed with the
Securities and Exchange Commission is effective. This prospectus is not an offer
to sell these securities and is not soliciting an offer to buy these securities
in any state where the offer or sale is not prohibited.
SUNAMERICA STYLE SELECT SERIES(R)
o FOCUSED TECHNET PORTFOLIO
CLASS A SHARES
CLASS B SHARES
CLASS II SHARES
The Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the adequacy of this prospectus. Any representation to
the contrary is a criminal offense.
[SUNAMERICA MUTUAL FUNDS LOGO]
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TABLE OF CONTENTS
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FUND HIGHLIGHTS .................................... 2
SHAREHOLDER ACCOUNT INFORMATION .................... 5
MORE INFORMATION ABOUT THE PORTFOLIO ............... 13
INVESTMENT STRATEGIES ......................... 13
GLOSSARY ...................................... 14
INVESTMENT TERMINOLOGY .................... 14
RISK TERMINOLOGY .......................... 15
FUND MANAGEMENT ............................... 16
INFORMATION ABOUT ADVISERS ......................... 17
[SUNAMERICA MUTUAL FUNDS LOGO]
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FUND HIGHLIGHTS
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A FOCUS strategy is one in which an Adviser actively invests in a small number
of holdings which constitute its favorite stock-picking ideas at any given
moment. A focus philosophy reflects the belief that, over time, the performance
of most investment managers' "highest confidence" stocks exceeds that of their
more diversified portfolios. Each Adviser may invest in up to 10 securities for
a total of up to 30. Each Adviser may invest in additional financial securities
for the purpose of cash management or to hedge a security in the Portfolio.
When deemed appropriate by an Adviser, the Portfolio may engage in ACTIVE
TRADING when it frequently trades its portfolio securities to achieve its
investment goal.
The "GROWTH" ORIENTED philosophy to which the Portfolio subscribes--that of
investing in securities believed to offer the potential for long-term growth of
capital--focuses on securities considered to have a historical record of
above-average earnings growth; to have significant growth potential; to have
above-average earnings growth or the ability to sustain earnings growth; to
offer proven or unusual products or services; or to operate in industries
experiencing increasing demand.
MARKET CAPITALIZATION represents the total market value of the outstanding
securities of a corporation.
The following questions and answers are designed to give you an overview of
SunAmerica Style Select Series, Inc. (the "Fund"), and to provide you with
information about one of the Fund's separate Portfolios and its investment goal,
principal investment strategy, and principal investment technique. The
investment goal may be changed without shareholder approval, although you will
receive notice of any change. More complete investment information is provided
in chart form, under "More Information About the Portfolio," which is on page 13
and the glossary that follows on page 14.
Q: WHAT IS THE PORTFOLIO'S INVESTMENT GOAL, PRINCIPAL STRATEGIES AND
TECHNIQUES?
A:
PRINCIPAL
INVESTMENT INVESTMENT PRINCIPAL INVESTMENT
GOAL STRATEGIES TECHNIQUES
---- ---------- ----------
long-term growth and active trading of primaily
growth of capital focus domestic, but also foreign, equity
securities of companies that
demonstrate the potential for
long-term growth of capital and that
the Advisers believe will benefit
significantly from technological
advances or improvements, without
regard to market capitalization
The Portfolio has three different professional Advisers, each with its own
investment methodology within a particular investment style. Each Adviser
manages a separate portion of the Portfolio using focus and growth strategies.
ADDITIONAL INFORMATION ABOUT THE PORTFOLIO'S PRINCIPAL INVESTMENT TECHNIQUES
The Portfolio will primarily invest in up to thirty companies whose principal
businesses the Advisers believe will significantly benefit from advances or
improvements in technology ("technology companies"). Technology companies
include companies in many industries that rely extensively on technology in
their product development or operations, are expected to benefit from
technological advances and improvements, or may be experiencing growth in sales
and earnings driven by technology related research, products or services.
The broad industry categories in which technology companies may be found include
computer software and hardware, network and capital broadcasting, internet and
internet-related businesses, the development, production, sale, and distribution
of goods or services used in the broadcast and media industries, communications
services or equipment, the design, manufacture, or sale of electric components,
defense and data storage and retrieval, healthcare and biotechnology.
The relative size of the Portfolio's investment within these industries will
vary from time to time, and at times, an above-referenced industry may not be
represented in the Portfolio's holdings of these particular industries.
The Portfolio will significantly invest, under normal market conditions, in
internet and internet-related businesses. These companies include e-commerce
enterprises as well as those that develop services and products for the
internet. The Advisers may rotate the Portfolio's holdings out of internet or
internet-related companies for temporary defensive purposes or, if market
conditions warrant.
Q: WHAT ARE THE PRINCIPAL RISKS OF INVESTING IN THE PORTFOLIO?
A: The following section describes the principal risks of the Portfolio, while
the chart on page 13 describes principal and additional risks.
RISKS OF INVESTING IN EQUITY SECURITIES
The Portfolio invests primarily in equity securities. As with any equity fund,
the value of your investment in the Portfolio may fluctuate in response to stock
market movements. You should be aware that the performance of different types of
equity stocks may decline under varying market conditions--for example, "growth"
stocks may perform poorly under circumstances in which "value" stocks in general
have continued to rise. In addition, individual stocks selected for the
Portfolio may underperform the market generally.
2
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RISKS OF NON-DIVERSIFICATION
The Portfolio is non-diversified, which means that it can invest a larger
portion of its assets in the stock of a single company than can some other
mutual funds. By concentrating in a smaller number of stocks, the Portfolio's
risk is increased because the effect of each stock on the Portfolio's
performance is greater.
RISKS OF INVESTING IN SMALL COMPANIES
Stocks of smaller companies may be more volatile than, and not as readily
marketable as, those of larger companies.
RISKS OF INVESTING IN TECHNOLOGY COMPANIES
Technology companies may react similarly to certain market pressures and events.
They may be significantly affected by short product cycles, aggressive pricing
of products and services, competition from new market entrants, and obsolescence
of existing technology. As a result, the Portfolio's returns may be considerably
more volatile than a fund that does not invest in technology companies.
ADDITIONAL PRINCIPAL RISKS
Shares of the Portfolio are not bank deposits and are not guaranteed or insured
by any bank, SunAmerica or SunAmerica's affiliates, any government entity or the
Federal Deposit Insurance Corporation. As with any mutual fund, there is no
guarantee that the Portfolio will be able to achieve its investment goal or that
the net return on an investment in the Portfolio will exceed what could have
been obtained through other investment or savings vehicles. If the value of the
assets of the Portfolio goes down, you could lose money.
Q: HOW HAS THE PORTFOLIO PERFORMED HISTORICALLY?
A: Performance information for the Portfolio is not shown because it has been
in existence for less than one year.
Q: WHAT ARE THE PORTFOLIO'S EXPENSES?
A: The following table describes the fees and expenses that you may pay if you
buy and hold shares of the Portfolio.
CLASS A CLASS B CLASS II
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SHAREHOLDER FEES (FEES PAID
DIRECTLY FROM YOUR INVESTMENT)
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)(1) ........... 5.75% None 1.00%
Maximum Deferred Sales Charge (Load) (as a
percentage of amount redeemed)(2) ................ None 4.00% 1.00%
Maximum Sales Charge (Load) Imposed on
Reinvested Dividends ............................. None None None
Redemption Fee(3) ................................ None None None
Exchange Fee ..................................... None None None
Maximum Account Fee .............................. None None None
Annual Fund Operating Expenses
(expenses that are deducted from Fund assets)
Management Fees .................................. 1.25% 1.25% 1.25%
Distribution and Service (12b-1) Fees(4) ......... 0.35% 1.00% 1.00%
Other Expenses(5)................................. 0.37% 0.37% 0.37%
---- ---- ----
Total Annual Fund Operating Expenses(5) (6) ...... 1.97% 2.62% 2.62%
==== ==== ====
(1) The front-end sales charge on Class A shares decreases with the size of the
purchase to 0% for purchases of $1 million or more.
(2) Purchases of Class A shares over $1 million will be subject to a contingent
deferred sales charge (CDSC) on redemptions made within two years of
purchase. The CDSC on Class B shares applies only if shares are redeemed
within six years of their purchase. The CDSC on Class II shares applies only
if shares are redeemed within eighteen months of their purchase. See page 5
for more information on the CDSCs.
(3) A $15.00 fee is imposed on wire and overnight mail redemptions.
(4) Because these fees are paid out of the Portfolio's assets on an on-going
basis, over time these fees will increase the cost of your investment and
may cost you more than paying other types of sales charges.
(5) Estimated.
(6) The Board of Directors, including a majority of the Independent Directors,
approved the Investment Advisory and Management Agreement subject to the
expense ratios set forth above. SunAmerica will waive fees and
reimbursements should the Total Annual Fund Operating Expenses be higher
than estimated. SunAmerica may not increase such ratios, which are
contractually required by agreement with the Board of Directors, without the
approval of the Directors, including a majority of the Independent
Directors. The expense waivers and fee reimbursements will continue
indefinitely, subject to termination by the Directors, including a majority
of the Independent Directors.
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FUND HIGHLIGHTS
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EXAMPLE
This Example is intended to help you compare the cost of investing in the
Portfolio with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the Portfolio for the time
periods indicated and that your investment has a 5% return each year and that
the Portfolio's operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions and the net expenses shown in
the fee table your costs would be:
If you redeemed your investment at the end of the periods indicated:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
FOCUSED TECHNET PORTFOLIO
(Class A shares) $763 $1,158 $1,576 $2,739
(Class B shares) $665 $1,014 $1,590 $2,723
(Class II shares) $462 $ 906 $1,476 $3,624
If you did not redeem your shares:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
FOCUSED TECHNET PORTFOLIO
(Class A shares) $763 $1,158 $1,576 $2,739
(Class B shares) $265 $ 814 $1,390 $2,723
(Class II shares) $362 $ 906 $1,476 $3,624
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SHAREHOLDER ACCOUNT INFORMATION
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SELECTING A SHARE CLASS
The Portfolio offers three classes of shares through this Prospectus: Class A,
Class B and Class II shares.
Each class of shares has its own cost structure, so you can choose the one best
suited to your investment needs. Your broker or financial advisor can help you
determine which class is right for you.
CLASS A Class B Class II
o Front-end sales o No front-end sales o Front-end sales
charges, as described charge; all your money charge, as described
below. There are goes to work for you below.
several ways to reduce right away.
these charges, also o Higher annual expenses
described below. o Higher annual expenses than Class A shares.
than Class A shares.
o Lower annual expenses o Deferred sales charge
than Class B or Class o Deferred sales charge on shares you sell
II shares. on shares you sell within eighteen months
within six years of of purchase, as
purchase, as described described below.
below.
o No conversion to Class
o Automatic conversion A.
to Class A shares
approximately one year
after such time that
no CDSC would be
payable upon
redemption, as
described below, thus
reducing future annual
expenses.
CALCULATION OF SALES CHARGES
CLASS A. Sales Charges are as follows:
Concession
Sales Charge to Dealers
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% OF % OF NET % OF
OFFERING AMOUNT OFFERING
YOUR INVESTMENT PRICE INVESTED PRICE
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Less than $50,000 ........................ 5.75% 6.10% 5.00%
$50,000 but less than $100,000 ........... 4.75% 4.99% 4.00%
$100,000 but less than $250,000 .......... 3.75% 3.90% 3.00%
$250,000 but less than $500,000 .......... 3.00% 3.09% 2.25%
$500,000 but less than $1,000,000 ........ 2.10% 2.15% 1.35%
$1,000,000 or more ....................... None None 1.00%
INVESTMENTS OF $1 MILLION OR MORE. Class A shares are available with no
front-end sales charge. However, a 1% CDSC is imposed on any shares you sell
within one year of purchase and a 0.50% CDSC is charged on any shares you sell
after the first year and within the second year after purchase.
CLASS B. Shares are offered at their net asset value per share, without any
initial sales charge. However, there is a CDSC on shares you sell within six
years of buying them. The longer the time between the purchase and the sale of
shares, the lower the rate of the CDSC:
Class B deferred charges:
Years after purchase CDSC on shares being sold
1st or 2nd year ............. 4.00%
3rd or 4th year ............. 3.00%
5th year .................... 2.00%
6th year .................... 1.00%
7th year and thereafter ..... None
CLASS II. Sales Charges are as follows:
Sales Charge Concession to Dealers
----------------------------------------------------------
% OF % OF NET % OF
OFFERING AMOUNT OFFERING
PRICE INVESTED PRICE
----------------------------------------------------------
1.00% 1.01% 1.00%
There is also a CDSC of 1% on shares you sell within 18 months after you buy
them.
DETERMINATION OF CDSC. Each CDSC is based on the original purchase cost or the
current market value of the shares being sold, whichever is less. There is no
CDSC on shares you purchase through reinvestment of dividends. To keep your CDSC
as low as possible, each time you place a request to sell shares we will first
sell any shares in your account that are not subject to a CDSC. If there are not
enough of these shares available, we will sell shares that have the lowest CDSC.
FOR PURPOSES OF THE CDSC, WE COUNT ALL PURCHASES YOU MAKE DURING A CALENDAR
MONTH AS HAVING BEEN MADE ON THE FIRST DAY OF THAT MONTH.
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SHAREHOLDER ACCOUNT INFORMATION
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SALES CHARGE REDUCTIONS AND WAIVERS
WAIVERS FOR CERTAIN INVESTORS. Various individuals and institutions may purchase
CLASS A shares without front-end sales charges, including:
o financial planners, institutions, broker-dealer representatives or
registered investment advisers utilizing Fund shares in fee-based
investment products under an agreement with the Distributor (this waiver
may also apply to front-end sales charges of Class II shares)
o participants in certain retirement plans that meet applicable conditions,
as described in the Statement of Additional Information
o Fund Directors and other individuals, and their families, who are
affiliated with the Portfolio or any fund distributed by SunAmerica
Capital Services, Inc.
o selling brokers and their employees and sales representatives and their
families
o participants in "Net Asset Value Transfer Program"
We will generally waive the CDSC for CLASS B or CLASS II shares in the following
cases:
o within one year of the shareholder's death or becoming disabled
o taxable distributions from or loans to participants made by qualified
retirement plans or retirement accounts (not including rollovers) for
which SunAmerica Fund Services, Inc. serves as a fiduciary
o Fund Directors and other individuals, and their families, who are
affiliated with any Portfolio or any fund distributed by Sunamerica
Capital Services, Inc.
o to make payments through the Systematic Withdrawal Plan (subject to
certain conditions)
o participants in "Net Asset Value Transfer Program"
REDUCING YOUR CLASS A SALES CHARGES. There are several special purchase plans
that allow you to combine multiple purchases of Class A shares of SunAmerica
Mutual Funds to take advantage of the breakpoints in the sales charge schedule.
For information about the "Rights of Accumulation," "Letter of Intent,"
"Combined Purchase Privilege," and "Reduced Sales Charges for Group Purchases,"
contact your broker or financial advisor, or consult the Statement of Additional
Information.
TO UTILIZE: IF YOU THINK YOU MAY BE ELIGIBLE FOR A SALES CHARGE REDUCTION OR
CDSC WAIVER, CONTACT YOUR BROKER OR FINANCIAL ADVISOR.
REINSTATEMENT PRIVILEGE. If you sell shares of the Portfolio, within one year
after the sale, you may invest some or all of the proceeds of the sale in the
same share class of the Portfolio without a sales charge. A shareholder may use
the reinstatement privilege only one time after selling such shares. If you paid
a CDSC when you sold your shares, we will credit your account with the dollar
amount of the CDSC at the time of sale. All accounts involved must be registered
in the same name(s).
DISTRIBUTION AND SERVICE (12B-1) FEES
Each class of shares of each Portfolio has its own 12b-1 plan that provides for
distribution and account maintenance and service fees (payable to the
Distributor) based on a percentage of average daily net assets, as follows:
ACCOUNT MAINTENANCE AND
CLASS DISTRIBUTION FEE SERVICE FEE
A 0.10% 0.25%
B 0.75% 0.25%
II 0.75% 0.25%
Because 12b-1 fees are paid out of the Portfolio's assets on an ongoing basis,
over time these fees will increase the cost of your investment and may cost you
more than paying other types of sales charges.
INITIAL OFFERING OF SHARES
The Portfolio will accept orders for Class A, Class B and Class II shares of the
Portfolio during a pre-commencement period from May 1, 2000 through May 19,
2000. If you place your order for shares of the Portfolio during this time, the
shares will be issued at a net asset value of $12.50 per share at the
commencement of operations, which is expected to occur on May 22, 2000 (the
"Commencement Date"). An initial sales charge of up to 5.75% (6.10% of the net
amount invested) is imposed on each transaction in Class Ashares. This initial
sales charge may be reduced depending on the amount of the purchase as shown in
the table under "Calculation of Sales Charges" or the applicability of any
waiver or reduction of the sales charge. An initial sales charge of 1.00% (1.01%
of the net amount invested) is imposed on each transaction in Class II shares.
Payment for Portfolio shares is due when you place your order, however, your
money will not be transferred to the Portfolio until the Commencement Date. If
you purchase shares by electronic means, no funds will be transferred until the
Commencement Date. If you purchase shares by any other means, your payment will
be held by the Portfolio's Transfer Agent in a paid-in-waiting status until the
Commencement Date. Purchases held in a paid-in-waiting status may be rescinded
at any time prior to the Commencement Date and if so, your payment will be
returned. During the period between receipt of your order and the commencement
date, your money will not be invested in any manner and no interest will be
earned. On the Commencement Date, all orders received will settle and be
transferred to the Portfolio.
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Although you place an order for shares, you will not have any rights as a
shareholder of the Portfolio until your money is invested in the Portfolio and
the issuance of shares has been reflected in the Portfolio's books. We reserve
the right to withdraw, modify or terminate the initial offering without notice
and to refuse any order in whole or in part. Beginning on or about May 22, 2000,
the Portfolio will commence a continuous offering of its shares
OPENING AN ACCOUNT
1. Read this prospectus carefully.
2. Determine how much you want to invest. The minimum initial investment for
each class of the Portfolio is as follows:
o non-retirement account: $500
o retirement account: $250
o dollar cost averaging: $500 to open; you must invest at least $25 a
month
The minimum subsequent investment for the Portfolio is as follows:
o non-retirement account: $100
o retirement account: $25
3. Complete the appropriate parts of the Account Application, carefully
following the instructions. If you have questions, please contact your
broker or financial advisor or call Shareholder/Dealer Services at
1-800-858-8850, extension 5125.
4. Complete the appropriate parts of the Supplemental Account Application. By
applying for additional investor services now, you can avoid the delay and
inconvenience of having to submit an additional application if you want to
add services later.
5. Make your initial investment using the chart on the next page. You can
initiate any purchase, exchange or sale of shares through your broker or
financial advisor.
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SHAREHOLDER ACCOUNT INFORMATION
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BUYING SHARES
OPENING AN ACCOUNT
BY CHECK
................................................................................
o Make out a check for the investment amount, payable to the Focused TechNet
Portfolio or SunAmerica Funds.
o Deliver the check and your completed Account Application (and Supplemental
Account Application, if applicable) to your broker or financial advisor,
or mail them to:
SunAmerica Fund Services, Inc.
Mutual Fund Operations, 3rd Floor
The SunAmerica Center
733 Third Avenue
New York, New York 10017-3204
o All purchases must be in U.S. dollars. Cash will not be accepted. A $25.00
fee will be charged for all checks returned due to insufficient funds.
ADDING TO AN ACCOUNT
...............................................................................
o Make out a check for the investment amount payable to the Focused TechNet
Portfolio or SunAmerica Funds.
o Include the stub from your Fund statement or a note specifying the Focused
TechNet Portfolio, your share class, your account number and the name(s)
in which the account is registered.
o Indicate the Focused TechNet Portfolio and account number in the memo
section of your check.
o Deliver the check and your stub to your broker or financial advisor, or
mail them to:
NON-RETIREMENT ACCOUNTS:
SunAmerica Fund Services, Inc.
c/o NFDS
P.O. Box 419373
Kansas City, Missouri 64141-6373
RETIREMENT ACCOUNTS:
SunAmerica Fund Services, Inc.
Mutual Fund Operations, 3rd Floor
The SunAmerica Center
733 Third Avenue
New York, New York 10017-3204
BY WIRE
...............................................................................
o Deliver your completed application to your broker or financial advisor or
fax it to SunAmerica Fund Services, Inc. at 212-551-5585.
o Obtain your account number by referring to your statement or by calling
your broker or financial advisor or Shareholder/Dealer Services at
1-800-858-8850, ext. 5125.
o Instruct your bank to wire the amount of your investment to:
State Street Bank & Trust Company
Boston, MA
ABA #0110-00028
DDA # 99029712
Specify the Focused TechNet Portfolio, your choice of share class, your new
Portfolio number and account number and the name(s) in which the account is
registered. Your bank may charge a fee to wire funds.
o Instruct your bank to wire the amount of your investment to:
State Street Bank & Trust Company
Boston, MA
ABA #0110-00028
DDA # 99029712
Specify the Focused TechNet Portfolio, your share class, your Portfolio number,
account number and the name(s) in which the account is registered. Your bank may
charge a fee to wire funds.
TO OPEN OR ADD TO AN ACCOUNT USING DOLLAR COST AVERAGING, SEE "ADDITIONAL
INVESTOR SERVICES."
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SELLING SHARES
HOW REQUIREMENTS
THROUGH YOUR BROKER OR
FINANCIAL ADVISOR
................................................................................
o Accounts of any type. o Call your broker or financial
advisor to place your order to
o Sales of any amount. sell shares.
BY MAIL
................................................................................
o Accounts of any type. o Write a letter of instruction
indicating the Focused TechNet
o Include all signatures and any Portfolio, your share class, your
additional documents that may be account number, the name(s) in
required (see next page). which the account is registered
and the dollar value or number of
o Mail the materials to: shares you wish to sell.
SunAmerica Fund Services, Inc. o Sales of $100,000 or more require
Mutual Fund Operations, 3rd Floor the letter of instruction to have
The SunAmerica Center a signature guarantee.
733 Third Avenue
New York, New York 10017-3204 o A check will normally be mailed on
the next business day to the
name(s) and address in which the
account is registered, or
otherwise according to your letter
of instruction.
BY PHONE
................................................................................
o Most accounts. o Call Shareholder/Dealer Services
at 1-800-858-8850, extension 5125
o Sales of less than $100,000. between 8:30 a.m. and 7:00 p.m.
(Eastern time) on most business
days. Indicate the Focused TechNet
Portfolio, the name of the person
requesting the redemption, your
share class, your account number,
the name(s) in which the account
is registered and the dollar value
or number of shares you wish to
sell.
o A check will be mailed to the
name(s) and address in which the
account is registered.
BY WIRE
................................................................................
o Request by mail to sell any amount o Proceeds will normally be wired on
(accounts of any type). the next business day. A $15 fee
will be deducted from your
o Request by phone to sell less than account.
$100,000.
TO SELL SHARES THROUGH A SYSTEMATIC WITHDRAWAL PLAN, SEE "ADDITIONAL INVESTOR
SERVICES."
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SHAREHOLDER ACCOUNT INFORMATION
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SELLING SHARES IN WRITING. In certain circumstances, you will need to make your
request to sell shares in writing. Corporations, executors, administrators,
trustees or guardians may need to include additional items with a request to
sell shares. You may also need to include a signature guarantee, which protects
you against fraudulent orders. You will need a signature guarantee if:
o your address of record has changed within the past 30 days
o you are selling shares worth $100,000 or more
o you are requesting payment other than by a check mailed to the address of
record and payable to the registered owner(s)
You can generally obtain a signature guarantee from the following sources:
o a broker or securities dealer
o a federal savings, cooperative or other type of bank
o a savings and loan or other thrift institution
o a credit union
o a securities exchange or clearing agency
A notary public CANNOT provide a signature guarantee.
TRANSACTION POLICIES
VALUATION OF SHARES. The net asset value per share (NAV) for the Portfolio and
each class is determined each business day at the close of regular trading on
the New York Stock Exchange (generally 4:00 p.m., Eastern time) by dividing the
net assets of each class by the number of such class's outstanding shares.
Investments for which market quotations are readily available are valued at
market at their price as of the close of regular trading on the New York Stock
Exchange for the day. All other securities and assets are valued at fair value
following procedures approved by the Directors.
BUY AND SELL PRICES. When you buy shares, you pay the NAV plus any applicable
sales charges, as described earlier. When you sell shares, you receive the NAV
minus any applicable CDSCs.
EXECUTION OF REQUESTS. The Portfolio is open on those days when the New York
Stock Exchange is open for regular trading. We execute buy and sell requests at
the next NAV to be calculated after the Portfolio receives your request in good
order. If the Portfolio or the Distributor receives your order before the
Portfolio's close of business (generally 4:00 p.m., Eastern time), you will
receive that day's closing price. If the Portfolio or the Distributor receives
your order after that time, you will receive the next business day's closing
price. If you place your order through a broker or financial advisor, you should
make sure the order is transmitted to the Portfolio before the Portfolio's close
of business. The Portfolio and the Distributor reserve the right to reject any
order to buy shares.
During periods of extreme volatility or market crisis, the Portfolio may
temporarily suspend the processing of sell requests, or may postpone payment of
proceeds for up to three business days or longer, as allowed by federal
securities laws.
The Portfolio may invest in securities that are primarily listed on foreign
exchanges that trade on weekends or other days when the Portfolio does not price
its shares. As a result, the value of the Portfolio's shares may change on days
when you will not be able to purchase or redeem your shares.
If the Portfolio determines that it would be detrimental to the best interests
of the remaining shareholders of the Portfolio to make payment of redemption
proceeds wholly or partly in cash, the Portfolio may pay the redemption price by
a distribution in kind of securities from the Portfolio in lieu of cash.
At various times, the Portfolio may be requested to redeem shares for which it
has not yet received good payment. The Portfolio may delay or cause to be
delayed the mailing of a redemption check until such time as good payment (E.G.,
cash or certified check drawn on a United States bank) has been collected for
the purchase of such shares, which will not exceed 15 days.
TELEPHONE TRANSACTIONS. For your protection, telephone requests are recorded in
order to verify their accuracy. In addition, Shareholder/Dealer Services will
take measures to verify the identity of the caller, such as asking for name,
account number, social security or other taxpayer ID number and other relevant
information. If appropriate measures are not taken, the Portfolio is responsible
for any loss that may occur to any account due to an unauthorized telephone
call. Also for your protection, telephone transactions are not permitted on
accounts whose names or addresses have changed within the past 30 days. At times
of peak activity, it may be difficult to place requests by phone. During these
times, consider sending your request in writing.
EXCHANGES. You may exchange shares of the Portfolio for shares of the same class
of any other fund distributed by SunAmerica Capital Services, Inc. Before making
an exchange, you should review a copy of the prospectus of the fund into which
you would like to exchange. All exchanges are subject to applicable minimum
investment requirements. A Systematic Exchange Program is described under
"Additional Investor Services." An exchange is treated as a taxable sale of the
exchanged shares and a purchase of the new shares for federal income tax
purposes.
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- --------------------------------------------------------------------------------
If you exchange shares that were purchased subject to a CDSC, the CDSC will
continue to apply following the exchange. In determining the CDSC applicable to
shares being sold after an exchange, we will take into account the length of
time you held those shares prior to the exchange.
To protect the interests of other shareholders, we may cancel the exchange
privileges of any investors that, in the opinion of the Portfolio, are using
market timing strategies or making excessive exchanges. The Portfolio may change
or cancel its exchange privilege at any time, upon 60 days' written notice to
its shareholders. The Portfolio may also refuse any exchange order.
CERTIFICATED SHARES. Most shares are electronically recorded. If you wish to
have certificates for your shares, please call Shareholder/Dealer Services at
1-800-858-8850 extension 5125, for further information. You may sell or exchange
certificated shares only by returning the certificates to the Portfolio, along
with a letter of instruction and a signature guarantee. The Portfolio does not
issue certificates for fractional shares.
MULTI-PARTY CHECKS. The Fund may agree to accept a "multi-party check" in
payment for Portfolio shares. This is a check made payable to the investor by
another party and then endorsed over to the Portfolio by the investor. If you
use a multi-party check to purchase shares, you may experience processing
delays. In addition, the Fund is not responsible for verifying the authenticity
of any endorsement and assumes no liability for any losses resulting from a
fraudulent endorsement.
ADDITIONAL INVESTOR SERVICES
To select one or more of these additional services, complete the relevant
part(s) of the Supplemental Account Application. To add a service to an existing
account, contact your broker or financial advisor, or call Shareholder/Dealer
Services at 1-800-858-8850, extension 5125.
DOLLAR COST AVERAGING lets you make regular investments from your bank account
to the Portfolio or any other fund distributed by SunAmerica Capital Services of
your choice. You determine the frequency and amount of your investments, and you
can terminate your participation at any time.
SYSTEMATIC WITHDRAWAL PLAN may be used for routine bill payment or periodic
withdrawals from your account. To use:
o Make sure you have at least $5,000 worth of shares in your account.
o Make sure you are not planning to invest more money in this account
(buying shares during a period when you are also selling shares of the
same fund is not advantageous to you, because of sales charges).
o Specify the payee(s) and amount(s). The payee may be yourself or any other
party (which may require a signature guarantee), and there is no limit to
the number of payees you may have, as long as they are all on the same
payment schedule. Each withdrawal must be at least $50.
o Determine the schedule: monthly, quarterly, semi-annually, annually or in
certain selected months.
o Make sure your dividends and capital gains are being reinvested.
You cannot elect the systematic withdrawal plan if you have requested
certificates for your shares.
SYSTEMATIC EXCHANGE PROGRAM may be used to exchange shares of the Portfolio
periodically for the same class of shares of one or more other fund distributed
by SunAmerica Capital Services, Inc. To use:
o Specify the SunAmerica Mutual Fund(s) from which you would like money
withdrawn and into which you would like money invested.
o Determine the schedule: monthly, quarterly, semi-annually, annually or in
certain selected months.
o Specify the amount(s). Each exchange must be worth at least $50.
o Accounts must be registered identically; otherwise a signature guarantee
will be required.
ASSET PROTECTION PLAN (OPTIONAL) Anchor National Life Insurance Company offers
an Asset Protection Plan to certain investors in the Portfolio. The benefits of
this optional coverage payable at death will be related to the amounts paid to
purchase Portfolio shares and to the value of the Portfolio shares held for the
benefit of the insured persons. However, to the extent the purchased shares are
redeemed prior to death, coverage with respect to these shares will terminate.
Purchasers of the Asset Protection Plan are required to authorize periodic
redemptions of Portfolio shares to pay the premiums for this coverage. These
redemptions will not be subject to CDSCs, but will have the same tax
consequences as any other Portfolio redemptions.
The Asset Protection Plan will be available to eligible persons who enroll for
the coverage within a limited time period after shares in the Portfolio are
initially purchased or transferred. In addition, coverage cannot be made
available unless Anchor National knows for whose benefit shares are purchased.
For instance, coverage cannot be made available for shares registered in the
name of your broker unless the broker provides Anchor National with information
regarding the beneficial owners of the shares. In addition, coverage is
available only to shares purchased on behalf of natural persons between 21 and
75 years of age; coverage is not available with respect to shares purchased for
a retirement account. Other restrictions on the coverage apply. This coverage
may not be available in all states and may be subject to additional restrictions
or limitations. Purchasers of shares should also make themselves familiar with
the impact on the Asset
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SHAREHOLDER ACCOUNT INFORMATION
- --------------------------------------------------------------------------------
Protection Plan coverage of purchasing additional shares, reinvestment of
dividends and capital gains distributions and redemptions.
Anchor National is a SunAmerica company.
Please call 1-800-858-8850, extension 5660 for more information, including the
cost of the Asset Protection Plan option.
RETIREMENT PLANS. SunAmerica Mutual Funds offer a range of qualified retirement
plans, including IRAs, Simple IRAs, Roth IRAs, SEPs, SARSEPs, 401(k) plans,
403(b) plans and other pension, educational and profit-sharing plans. Using
these plans, you can invest in any fund distributed by SunAmerica Capital
Services, Inc. with a low minimum investment of $250 or, for some group plans,
no minimum investment at all. To find out more, call Retirement Plans at
1-800-858-8850, extension 5134.
DIVIDEND, DISTRIBUTION AND ACCOUNT POLICIES
ACCOUNT STATEMENTS. In general, you will receive account statements as follows:
o after every transaction that affects your account balance (except a
dividend reinvestment or automatic purchase from or automatic redemption
to your bank account)
o after any changes of name or address of the registered owner(s)
o in all other circumstances, annually
Every year you should also receive, if applicable, a Form 1099 tax information
statement, mailed by January 31.
DIVIDENDS. The Portfolio generally distributes most or all of its net earnings
in the form of dividends. Income dividends, if any, are paid at least annually
by the Portfolio.
DIVIDEND REINVESTMENTS. Your dividends and distributions, if any, will be
automatically reinvested in additional shares of the same share class on which
they were paid. Alternatively, dividends and distributions may be reinvested in
any other fund distributed by SunAmerica Capital Services, Inc. or paid in cash
(if more than $10). You will need to complete the relevant part of the Account
Application to elect one of these other options. For existing accounts, contact
your broker or financial advisor or call Shareholder/Dealer Services at
1-800-858-8850, extension 5125 to change dividend and distribution payment
options.
TAXABILITY OF DIVIDENDS. The Portfolio intends to satisfy the requirements
necessary to qualify as a regulated investment company for federal income tax
purposes. For so long as the Portfolio so qualifies, it will pay no federal
income tax on the income and capital gains that it distributes to shareholders.
Dividends you receive from the Portfolio, whether reinvested or taken as cash,
are generally considered taxable. The Portfolio intends to make distributions
that may be taxed as ordinary income and capital gains (which may be taxable at
different rates depending on the length of time the Portfolio holds its assets).
Some dividends paid in January may be taxable as if they had been paid the
previous December. Corporations may be entitled to take a dividends-received
deduction for a portion of certain dividends they receive.
The Form 1099 that is mailed to you every January details your dividends and
their federal tax category, although you should verify your tax liability with
your tax professional.
"BUYING INTO A DIVIDEND." You should note that if you purchase shares just
before a distribution, you will be taxed for that distribution like other
shareholders, even though that distribution represents simply a return of part
of your investment. You may wish to defer your purchase until after the record
date for the distribution, so as to avoid this tax impact.
TAXABILITY OF TRANSACTIONS. Any time you sell or exchange shares, it is
considered a taxable event for you. Depending on the purchase price and the sale
price of the shares you sell or exchange, you may have a gain or a loss on the
transaction. You are responsible for any tax liabilities generated by your
transactions. If you hold Class B shares, you will not have a taxable event when
they convert into Class A shares.
OTHER TAX CONSIDERATIONS. If you are neither a lawful permanent resident nor a
citizen of the U.S. or if you are a foreign entity, ordinary income dividends
paid to you (which include distributions of net short-term capital gains) will
generally be subject to a 30% U.S. withholding tax, unless a lower treaty rate
applies.
By law, the Portfolio must withhold 31% of your distributions and proceeds if
you have not provided a taxpayer identification number or social security
number.
This section summarizes some of the consequences under current federal income
tax law of an investment in the Portfolio. It is not a substitution for
professional tax advice. Consult your tax advisor about the potential tax
consequences of an investment in the Portfolio under all applicable laws.
SMALL ACCOUNTS. If you draw down an account so that its total value is less than
$500 ($250 for retirement plan accounts), you may be asked to purchase more
shares within 60 days. If you do not take action, the Fund may close out your
account and mail you the proceeds. Alternatively, you may be charged a $2.00
monthly charge to maintain your account. Your account will not be closed if its
drop in value is due to Portfolio performance or the effects of sales charges.
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MORE INFORMATION ABOUT THE PORTFOLIO
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FUND INVESTMENT STRATEGIES
- --------------------------------------------------------------------------------
The Portfolio has an investment goal and a strategy for pursuing it. The chart
summarizes information about the Portfolio's investment approach. Following this
chart is a glossary that further describes the investment and risk terminology
that we use. Please review the glossary in conjunction with this chart.
- --------------------------------------------------------------------------------
FOCUSED TECHNET
- --------------------------------------------------------------------------------
What is the Portfolio's Long-term growth of capital
investment goal?
- --------------------------------------------------------------------------------
What principal investment strategies Growth and focus
does the Portfolio use to implement
its investment goal?
- --------------------------------------------------------------------------------
What are the Portfolio's principal o Active trading of up to thirty equity
investment techniques? securities of companies that offer the
potential for capital appreciation and
that the Advisers believe will benefit
significantly from technological
advances or improvements, without
regard to market capitalization
- --------------------------------------------------------------------------------
What are the Portfolio's other o Trading of foreign securities
significant investment techniques?
- --------------------------------------------------------------------------------
What other types of securities may o Short-term investments
the Portfolio normally invest in as (up to 10%)
part of efficient portfolio
management or for return o Defensive instruments
enhancement purposes?
o Options and futures
o Special situations
- --------------------------------------------------------------------------------
What principal risks normally may o Stock market volatility
affect the Portfolio?
o Securities selection
o Small market capitalization
o Technology company
o Non-diversification
- --------------------------------------------------------------------------------
What other risks o Foreign exposure
may affect the
Portfolio? o Derivatives
o Hedging
o Emerging markets
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MORE INFORMATION ABOUT THE PORTFOLIO
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LARGE-CAP COMPANIES and MID-CAP COMPANIES generally have a substantial record of
operations (i.e., in business for at least five years) and are listed for
trading on the New York Stock Exchange or another national or international
stock exchange or, in some cases, are traded over the counter. SMALL-CAP
COMPANIES generally will be companies that have been in business for a shorter
period of time.
GLOSSARY
INVESTMENT TERMINOLOGY
CAPITAL APPRECIATION is growth of the value of an investment.
ACTIVE TRADING means that the Portfolio may engage, when the Adviser deems
appropriate, in frequent trading of portfolio securities to achieve its
investment goal. In addition, because the Portfolio may sell a security without
regard to how long it has held the security, active trading may have tax
consequences for certain shareholders, involving a possible increase in
short-term capital gains or losses. Active trading may result in high portfolio
turnover and correspondingly greater brokerage commissions and other transaction
costs, which will be borne directly by the Portfolio. During periods of
increased market volatility, active trading may be more pronounced.
EQUITY SECURITIES include common and preferred stocks, convertible securities,
warrants and rights.
LARGE-CAP COMPANIES are those with market caps within the Morningstar, Inc.
Large-Cap category. Currently, this range is $9.5 billion or higher.
MID-CAP COMPANIES are those with market caps within the Morningstar, Inc.
Mid-Cap category. Currently, this range is between $1.5 billion and 9.5 billion.
SMALL-CAP COMPANIES are those with market caps within the Morningstar, Inc.
Small-Cap category. Currently, this range is $1.5 billion or less.
FOREIGN SECURITIES are issued by companies located outside of the United States
and include securities issued by companies located in emerging markets. Foreign
securities may include American Depositary Receipts (ADRs) or other similar
securities that convert into foreign securities.
SHORT-TERM INVESTMENTS include money market securities such as short-term U.S.
government obligations, repurchase agreements, commercial paper, bankers'
acceptances and certificates of deposit. These securities provide the Portfolio
with sufficient liquidity to meet redemptions and cover expenses.
DEFENSIVE INVESTMENTS include high quality fixed income securities and money
market instruments. The Portfolio will make temporary defensive investments in
response to adverse market, economic, political or other conditions. When the
Portfolio takes a defensive position, it may miss out on investment
opportunities that could have resulted from investing in accordance with its
principal investment strategy. As a result, the Portfolio may not achieve its
investment goal.
OPTIONS AND FUTURES are derivative instruments involving the right to receive or
obligation to deliver assets or money depending on the performance of one or
more underlying assets or financial instruments.
A SPECIAL SITUATION arises when, in the opinion of the Adviser, the securities
of a particular issuer will be recognized and appreciated in value due to a
specific development with respect to that issuer. Developments creating a
special situation might include, among others, a new product or process, a
technological breakthrough, a management change or other extraordinary corporate
event, or differences in market supply of and demand for the security.
Investments in special situations may carry an additional risk of loss in the
event that the anticipated development does not occur or does not attract the
expected attention.
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RISK TERMINOLOGY
STOCK MARKET VOLATILITY: The stock market as a whole could go up or down
(sometimes dramatically). This could affect the value of the securities in the
Portfolio's portfolio.
SECURITIES SELECTION: A strategy used by the Portfolio, or securities selected
by an Adviser, may fail to produce the intended return.
SMALL MARKET CAPITALIZATION: Companies with smaller market capitalizations tend
to be at early stages of development with limited product lines, market access
for products, financial resources, access to new capital, or depth in
management. It may be difficult to obtain reliable information and financial
data about these companies. Consequently, the securities of smaller companies
may not be as readily marketable and may be subject to more abrupt or erratic
market movements.
TECHNOLOGY COMPANIES: The industries in which technology companies may be found
can be significantly affected by short product cycles, aggressive pricing of
products and services, competition from new market entrants, worldwide
scientific and technological developments and changes in governmental regulation
and policies.
FOREIGN EXPOSURE: Investors in foreign countries are subject to a number of
risks. A principal risk is that fluctuations in the exchange rates between the
U.S. dollar and foreign currencies may negatively affect an investment. In
addition, there may be less publicly available information about a foreign
company and it may not be subject to the same uniform accounting, auditing and
financial reporting standards as U.S. companies. Foreign governments may not
regulate securities markets and companies to the same degree as the U.S.
government. Foreign investments will also be affected by local political or
economic developments and governmental actions. Consequently, foreign securities
may be less liquid, more volatile and more difficult to price than U.S.
securities. These risks are heightened when the issuer is in an emerging market.
DERIVATIVES: Derivatives are subject to general risks relating to heightened
sensitivity to market volatility, interest rate fluctuations, illiquidity and
creditworthiness of the counterparty to the derivatives transactions.
HEDGING: Hedging is a strategy in which the Adviser uses a derivative security
to reduce certain risk characteristics of an underlying security or portfolio of
securities. While hedging strategies can be very useful and inexpensive ways of
reducing risk, they are sometimes ineffective due to unexpected changes in the
market. Moreover, while hedging can reduce or eliminate losses, it can also
reduce or eliminate gains.
EMERGING MARKETS: An emerging market country is one that the World Bank, the
International Finance Corporation or the United Nations or its authorities has
determined to have a low or middle income economy. Historical experience
indicates that the markets or emerging market countries have been more volatile
than more developed markets; however, such markets can provide higher rates of
return to investors.
NON-DIVERSIFICATION: The Portfolio will hold up to thirty securities. As a
result, its performance may be affected more by a decline in the market price of
one stock than would be the case if the Portfolio were more diversified.
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FUND MANAGEMENT
MANAGER: SunAmerica Asset Management Corp. selects the Advisers for the
Portfolio, may manage certain portions of the Portfolio directly, provides
various administrative services, and supervises the daily business affairs of
the Portfolio. The Advisers are responsible for decisions to buy and sell
securities for the Portfolio, selection of broker-dealers and negotiation of
commission rates for their respective portion of the Portfolio. SunAmerica may
terminate any agreement with another Adviser without shareholder approval.
Moreover, SunAmerica has received an exemptive order from the Securities and
Exchange Commission that permits SunAmerica, subject to certain conditions, to
enter into agreements relating to the Portfolio with Advisers approved by the
Board of Directors without obtaining shareholder approval. The exemptive order
also permits SunAmerica, subject to the approval of the Board but without
shareholder approval, to employ new Advisers for new or existing Portfolios,
change the terms of particular agreements with Advisers or continue the
employment of existing Advisers after events that would otherwise cause an
automatic termination of a subadvisory agreement. Shareholders of the Portfolio
have the right to terminate an agreement with an Adviser at any time by a vote
of the majority of the outstanding voting securities of the Portfolio.
Shareholders will be notified of any Adviser changes. The order also permits the
Fund to disclose to shareholders the Advisers' fees only in the aggregate for
the Portfolio. The annual rate of the investment advisory fee payable to
SunAmerica is 1.25% of average daily net assets. Payments to the Advisers for
their services is made by SunAmerica, not by the Portfolio.
SunAmerica, located in The SunAmerica Center, 733 Third Avenue, New York, New
York 10017, was organized in 1982 under the laws of Delaware, and manages,
advises and/or administers assets in excess of $30 billion as of March 31, 2000.
In addition to managing the Portfolio, SunAmerica serves as adviser, manager
and/or administrator for Anchor Pathway Fund, Anchor Series Trust, Brazos Mutual
Funds, Seasons Series Trust, SunAmerica Equity Funds, Inc., SunAmerica Income
Funds, SunAmerica Money Market Funds, Inc., SunAmerica Series Trust and
SunAmerica Strategic Investment Series, Inc.
SunAmerica Asset Management Corp. ("SunAmerica") is the Portfolio's investment
manager and will initially allocate the assets of the Portfolio equally among
the Advisers. SunAmerica will also allocate new cash from share purchases and
redemption requests equally among the Advisers, unless SunAmerica determines,
subject to the review of the Board, that a different allocation of assets would
be in the best interests of the Portfolio and its shareholders.
SunAmerica intends, on a quarterly basis, to review the asset allocation in the
Portfolio to ensure that no portion of assets managed by an Adviser exceeds that
portion managed by any other Adviser to the Portfolio by more than 5%. If such a
condition exists, SunAmerica may at its discretion re-allocate cash flows among
the Advisers so as to effect a re-balancing of the Portfolio's asset allocation.
In addition, SunAmerica reserves the right, subject to the review of the Board,
to reallocate assets from one Adviser to another when it would be in the best
interests of the Portfolio and its shareholders to do so. In some instances, the
effect of the reallocation will be to shift assets from a better performing
Adviser to a portion of the Portfolio with a relatively lower total return.
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INFORMATION ABOUT ADVISERS
- --------------------------------------------------------------------------------
THE ADVISERS AND PORTFOLIO MANAGER FOR THE PORTFOLIO ARE DESCRIBED BELOW:
DESCRIPTION OF THE ADVISERS
DRESDNER RCM GLOBAL INVESTORS LLC. Dresdner is an indirect wholly owned
subsidiary of Dresdner Bank AG, an international banking organization, and is
located at Four Embarcadero Center, San Francisco, California 94111. As of
December 31, 1999, Dresdner had approximately $87.2 billion in total assets
under management.
SUNAMERICA ASSET MANAGEMENT CORP. See page 16.
VAN WAGONER CAPITAL MANAGEMENT, INC. Van Wagoner is a privately owned company
located at 345 California Street, San Francisco, California 94104. As of March
31, 2000, Van Wagoner had approximately $4.5 billion in assets under management.
NAME, TITLE AND AFFILIATION OF
PORTFOLIO MANAGER EXPERIENCE
- ------------------------------ ----------
WALTER C. PRICE,JR. MR. PRICE JOINED DRESDNER IN 1974 AS A
PORTFOLIO MANAGER (DRESDNER) SENIOR SECURITIES ANALYST AND BECAME A
PRINCIPAL IN 1978. HE HAS BEEN A MANAGING
DIRECTOR AND PORTFOLIO MANAGER WITH THE
FIRM SINCE 1985. MR. PRICE HAS ANALYTICAL
RESPONSIBILITY FOR MUCH OF DRESDNER'S
TECHNOLOGY AREA.
HUACHEN CHEN MR. CHEN JOINED DRESDNER IN 1985 AS
PORTFOLIO MANAGER (DRESDNER) A SECURITIES ANALYST. HE BECAME A
PRINCIPAL IN 1994 AND CURRENTLY HAS
RESEARCH AND MONEY MANAGEMENT
RESPONSIBILITIES FOR THE TECHNOLOGY,
AEROSPACE AND ELECTRICAL EQUIPMENT AREAS.
DONNA CALDER MS. CALDER JOINED SUNAMERICA AS A
PORTFOLIO MANAGER (SUNAMERICA) PORTFOLIO MANAGER IN FEBRUARY 1998.
MS. CALDER SERVED AS A GENERAL PARTNER
OF MANHATTAN CAPITAL PARTNERS, L.P. FROM
NOVEMBER 1991 THROUGH AUGUST 1995. SHE
ALSO HAS SERVED AS A PORTFOLIO MANAGER
WITH OPPENHEIMER MANAGEMENT AND E.F.
HUTTON & COMPANY.
SOOHWAN KIM, CFA SOOHWHAN KIM JOINED SUNAMERICA AS A
SENIOR TECHNOLOGY ANALYST SENIOR RESEARCH ANALYST IN JULY OF 1999.
(SUNAMERICA) PREVIOUSLY, HE WAS VICE PRESIDENT,
CITIBANK GLOBAL ASSET MANAGEMENT. FROM
ANALYST AT 1992 TO 1993, HE SERVED AS AN
ECONOMIST WITH THE UNION BANK OF
SWITZERLAND.
GARRETT R. VAN WAGONER, CFA MR. VAN WAGONER IS PORTFOLIO MANAGER
PORTFOLIO MANAGER (VAN WAGONER) AND PRESIDENT OF THE VAN WAGONER FUNDS.
PRIOR TO FOUNDING VAN WAGONER CAPITAL
MANAGEMENT, INC. IN 1995, MR. VAN
WAGONER MANAGED THE GOVETT SMALLER
COMPANIES FUND OR THREE YEARS. HE ALSO
WORKED WITH BESSEMER TRUST, N.A. AND HAS
OVER 20 YEARS EXPERIENCE OF EQUITY
PORTFOLIO MANAGEMENT.
RAIFORD GARRABRANT, CFA MR. GARRABRANT IS A RESEARCH ANALYST AND
PORTFOLIO MANAGER AND PORTFOLIO MANAGER FOR VAN WAGONER CAPITAL
RESEARCH ANALYST (VAN WAGONER) MANAGEMENT, INC. RESPONSIBLE FOR COVERING
COMPANIES WITH MARKET CAPITALIZATIONS
OF $500 MILLION AND BELOW. PRIOR TO
JOINING VAN WAGONER CAPITAL MANAGEMENT,
INC., HE WAS THE ASSISTANT PORTFOLIO
MANAGER FOR THE GOVETT SMALLER COMPANIES
FUND AND ASSISTED MR. VAN WAGONER IN
MANAGING THIS FUND IN 1994 AND 1995.
MR.GARRABRANT ALSO WORKED WITH FIRST
CITIZEN'S BANK AND TRUST AS A FINANCIAL
ANALYST AND HAS OVER EIGHT YEARS OF
RESEARCH AND PORTFOLIO MANAGEMENT
EXPERIENCE.
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INFORMATION ABOUT ADVISERS
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DISTRIBUTOR. SunAmerica Capital Services, Inc. distributes the Portfolio's
shares. The Distributor, a SunAmerica company, receives the initial and deferred
sales charges, all or a portion of which may be re-allowed to other
broker-dealers. In addition, the Distributor receives fees under the Portfolio's
12b-1 plans.
The Distributor, at its expense, may from time to time provide additional
compensation to broker-dealers (including in some instances, affiliates of the
Distributor) in connection with sales of shares of the Portfolio. This
compensation may include (i) full re-allowance of the front-end sales charge on
Class A shares; (ii) additional compensation with respect to the sale of Class
A, Class B or Class II shares; or (iii) financial assistance to broker-dealers
in connection with conferences, sales or training programs for their employees,
seminars for the public, advertising campaigns regarding the Portfolio, and/or
other broker-dealer sponsored special events. In some instances, this
compensation will be made available only to certain broker-dealers whose
representatives have sold a significant number of shares of the Portfolio.
Compensation may also include payment for travel expenses, including lodging,
incurred in connection with trips taken by invited registered representatives
for meetings or seminars of a business nature. In addition, the following types
of non-cash compensation may be offered through sales contests: (i) travel
mileage on major air carriers; (ii) tickets for entertainment events (such as
concerts or sporting events); or (iii) merchandise (such as clothing, trophies,
clocks, pens or other electronic equipment). Broker-dealers may not use sales of
the Portfolio's shares to qualify for this compensation to the extent receipt of
such compensation may be prohibited by applicable law or the rules of any
self-regulatory agency, such as the National Association of Securities Dealers,
Inc. Dealers who receive bonuses or other incentives may be deemed to be
underwriters under the Securities Act of 1933.
Certain laws and regulations limit the ability of banks and other depository
institutions to underwrite and distribute securities. However, in the opinion of
the Distributor based upon the advice of counsel, these laws and regulations do
not prohibit such depository institutions from providing other services to
investment companies of the type contemplated by the Portfolio's 12b-1 plans.
Banks and other financial services firms may be subject to various state laws
regarding these services, and may be required to register as dealers pursuant to
state law.
ADMINISTRATOR. SunAmerica Fund Services, Inc. assists the Portfolio's transfer
agent in providing shareholder services. The Administrator, a SunAmerica
company, is paid a monthly fee by the Portfolio for its services at the annual
rate of 0.22% of average daily net assets. This fee represents the full cost of
providing shareholder and transfer agency services to the Portfolio.
SunAmerica, the Distributor and Administrator are all located in The SunAmerica
Center, 733 Third Avenue, New York, New York 10017.
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FOR MORE INFORMATION
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The following documents contain more information about the Portfolio and are
available free of charge upon request:
ANNUAL AND SEMI-ANNUAL REPORTS. Contain financial statements, performance
data and information on portfolio holdings. The annual reports also contain a
written analysis of market conditions and investment strategies that
significantly affected the Portfolio's performance during the last applicable
period.
STATEMENT OF ADDITIONAL INFORMATION (SAI). Contains additional information
about the Portfolio's policies, investment restrictions and business
structure. This prospectus incorporates the SAI by reference.
You may obtain copies of these documents or ask questions about the Portfolio by
contacting:
SunAmerica Fund Services, Inc.
Mutual Fund Operations
The SunAmerica Center
733 Third Avenue
New York, New York 10017-3204
1-800-858-8850, extension 5125
or
by calling your broker or financial advisor.
Information about the Portfolio (including the SAI) can be reviewed and copied
at the Public Reference Room of the Securities and Exchange Commission,
Washington, D.C. Call 1-202-942-8090 for information on the operation of the
Public Reference Room. Information about the Portfolio is also available on the
Securities and Exchange Commission's web-site at http://www.sec.gov and copies
may be obtained upon payment of a duplicating fee by electronic request at the
following E-mail address: [email protected], or by writing the Public Reference
Section of the Securities and Exchange Commission, Washington, D.C. 20549-0102.
You should rely only on the information contained in this prospectus. No one is
authorized to provide you with any different information.
DISTRIBUTOR: Sun America Capital Services
INVESTMENT COMPANY ACT [SUNAMERICA MUTUAL FUNDS LOGO]
File No. 811-07797
TECPR
