<PAGE>
September 30, 1995
SUNAMERICA
EQUITY FUNDS
Annual
Report
Balanced Assets
Blue Chip Growth
Mid-Cap Growth
Small Company Growth
Global Balanced
Growth and Income
[LOGO]
SunAmerica
Asset Management
<PAGE>
SUNAMERICA EQUITY FUNDS
SHAREHOLDER LETTER
DEAR SHAREHOLDER:
ECONOMIC OVERVIEW
The economic landscape continues to suggest that we will see moderate Gross
Domestic Product (GDP) growth of 2-2 1/2% through 1996. The consumer has
become more cautious and cost conscious, a trend we believe will continue for
sometime. This is of significant importance since retail sales still represent
more than two-thirds of GDP growth. Along with corporate consolidations and
staffing reductions occurring daily, we strongly doubt that we will see any
near-term return to the spending habits of the 80's. The good news in this
scenario is that slow growth is sustainable and non-inflationary. The latest
results indicate that the Federal Reserve has been successful in its attempt
to limit inflation while allowing the U.S. economy to grow at a moderate pace.
It is our contention that this scenario is beneficial for both the equity and
fixed income markets. The Federal Reserve will provide the liquidity for GDP
growth over the next eighteen months. However, in the interim, corporate
profit comparisons will become quite difficult and this will be the main issue
the equity markets will have to embrace.
BALANCED ASSETS FUND
A stronger dollar, weakness in the technology sector, and continued
consolidation were the major occurrences over the last several months.
Overall, the strength of the equity markets did not abate, with both the Dow
Jones Industrial Average and the NASDAQ Composite Index reaching several new
highs throughout the most recent quarter. The Balanced Assets Fund continues
to focus on major growth industries that will prosper, should economic
activity continue to slow. Our goal is to invest in companies that will show
consistent, double-digit earnings growth in a slowing economic environment. As
a result, during the last few months, we began to build small positions in the
technology sector. We believe that this sector is overflowing with high growth
companies with solid fundamentals, such as Texas Instruments and Micron
Technology. Another sector of the market with consistent earnings growth and
solid fundamentals is the health care sector. We believe that this sector is
not only under-owned institutionally, but will continue to benefit from
further industry consolidation and political debate on Medicaid/Medicare.
Finally, we have focused on select names in the insurance industry, such as
Aetna Life & Casualty Co. and the St. Paul Companies. We are just beginning to
see restructuring and consolidation in this industry.
BLUE CHIP GROWTH FUND
The positive results toward the last quarter of fiscal 1995 were due to an
under-weighting of the technology sector and an over-weighting of the health
care and financial sectors. It is our belief that the trends in the financial
sector offer exciting growth, not only from lower rates but continued
consolidation and restructuring. We continue to like many of the regional
banks and credit card issuers, such as United Jersey Bank, First USA and
Capital One Financial. The health care sector continues to exhibit some trends
which we believe are exciting. Buffeted by strong pharmaceutical pipelines,
the switch to generic drugs, continued consolidation, and the ongoing debates
in Washington, this group offers significant investment potential. Our
favorite names in this group continue to be Merck & Company, Warner-Lambert
Co., Amgen, Inc. and Medtronic, Inc. Finally, bracing ourselves for slower
economic growth, we added several names in the food group, like H.J. Heinz
Co., which offers both a defensive way to play the market and consistent
corporate profits.
1
<PAGE>
SUNAMERICA EQUITY FUNDS
SHAREHOLDER LETTER
MID-CAP GROWTH FUND
1995 has been a good year for the Mid-Cap Growth Fund. The Mid-Cap Growth Fund
(Class A) finished the fiscal year up 29.51%, above its Lipper category group
average. The final quarter was a strong one, with investors moving more funds
into growth names and financial service stocks, away from cyclical issues as
more evidence of a slowing economy materialized. We were well positioned for
this change in sector selection. We have good exposure to the growth in
communications, with investments in paging infrastructure manufacturers
Glenayre Technologies, Ericsson Telecommunications and Cisco Systems. Our
financial holdings include Lehman Brothers, Mercantile Bancorp and RCSB
Financial. We continue to favor this sector given low interest rates and
consolidation in the industry. We continue to believe that select specialty
retailers with a marketing niche and competitive pricing, are gaining share in
a weak retail environment. We particularly like and hold positions in Tommy
Hilfiger, Nautica and Sunglass Hut. Finally, we own leaders in the health care
device area and generic drug area. These include Guidant Corporation, St. Jude
Medical, Teva Pharmaceuticals and IVAX Corporation. We remain bullish about
the prospects for continued strength in the market in 1996.
SMALL COMPANY GROWTH FUND
The Small Company Growth Fund (Class A) finished its fiscal year up 50.00%, in
the top 5% of its category. In addition, the Fund is now rated five stars by
Morningstar for the three and five years ending September 30, 1995 on an
overall risk-adjusted basis. The small cap market in general continued to
benefit from additional liquidity going into high growth equities with strong
earnings. Especially prominent have been the stocks of technology companies
where the Fund is well positioned. We continued to invest in networking and
telecommunications issues, specialty retail and apparel companies, oil service
companies and broadcast and radio media. Each segment has continued to
outperform based on strong earnings, market share gains, consolidation and
productivity enhancement. Our top holdings include PC Docs, a publisher of
document management software, wireless semiconductor manufacturer Alpha
Industries, apparel maker Nautica Enterprises, and movie/leisure operator
Regal Cinemas.
GLOBAL BALANCED FUND
International equity markets continued to under-perform the U.S. stock markets
throughout the most recent quarter. However, we saw a major retractment in the
Yen and a corresponding bounce in many international equity markets. We are
still convinced that international investments are particularly attractive at
this point in the global recovery and that they should represent a significant
portion of a well diversified portfolio. The portfolio's foreign stock
holdings continue to be heavily weighted in Japan and Southeast Asia, where
the continuing softness of U.S. interest rates and renewed advancement of U.S.
bonds are expected to help continue the advance of this market. We have
recently decreased our exposure to Europe, where economic growth is more
sluggish than we had anticipated in early 1995. At year end, 15% of the Fund
was invested in domestic equities, allowing us to catch the continued upswing
in the domestic equity markets. The focus of the U.S. equity markets is on the
extension of the economic cycle. Our focus is on sectors that will show
consistent double digit earnings and be the major beneficiaries of this slow
growth, low inflation environment. To that end, we have focused the portfolio
on the health care and telecommunications sectors of the market. Both areas
offer explosive growth and the added benefit of consolidation. Currently, we
would
2
<PAGE>
SUNAMERICA EQUITY FUNDS
SHAREHOLDER LETTER
not be surprised if the market sees a correction of 5-7% at some point prior to
our prediction that the Dow Jones industrial average would reach 5,000 by year-
end. The fixed income portion of the Global Balanced Fund, constituting 27% of
the portfolio at year-end, successfully capitalized on strong rallies in U. S.
and foreign bond markets.
GROWTH AND INCOME FUND
The Growth and Income Fund made a major shift in strategic portfolio direction
during the last quarter. The Fund went from being defensive in nature to a more
aggressive posture in terms of its cash allocation. Our strategy is to invest
in high dividend paying, high growth companies that will outperform in both a
slowing economic environment and future volatile markets. Given this backdrop,
the Fund initiated small positions in the high growth technology sector, with
names like Netscape Communications and Motorola, Inc. It is our contention that
the technology sector, although seemingly over bought and over-owned, offers
explosive long-term growth. The telephone companies, both local and long
distance, are another area of the market that is showing strong growth with
good yields. This is primarily due to continued deregulation within the
industry and corporate restructuring. Our focus in this area is on AT&T, Bell
Atlantic, and NYNEX Cablecomms Group. Finally, we continue to focus on
companies that will benefit from further industry consolidation and potential
break up values, like AlliedSignal, General Electric, Warner-Lambert and Aetna
Life & Casualty Co. Given this strategy, we believe the Fund will perform well
in a more volatile environment. Although the equity markets are poised for a
brief pullback, longer-term trends suggest that the market's advance is far
from over.
OUTLOOK
We continue to believe that the equity markets will most likely see 5,000 in
the Dow Jones Industrial Average by year end 1995 and 5,500 some time in 1996.
Our long-term scenario remains intact and consists of the following major
themes: First, slow, but sustainable growth in a non-inflationary environment.
Second, global competitive advantage of U.S. industries due to corporate
downsizing and the value of the dollar. Next, technological revolution that has
condensed and magnified the world growth picture. Accelerated global trade as a
direct result of technology and telecommunications developments. Continued
growth of capitalism over socialism and its positive effects on global growth.
Finally, the inevitability of demographic changes that will result in more
savings and less conspicuous consumption. These trends will be the dominant
drivers of the markets over the coming years and should be referred to when we
are in periods of market consolidations that create fear and doubt. We do
expect a market that will be more selective and defensive in the remaining
months of 1995. However, any meaningful correction will likely be unpleasant,
but short in duration. A market correction of 5-7% at this time would be
healthy for the markets and offer another important entry point in the
continuing bull market--stay invested.
/s/ Stanton J. Feeley /s/ Audrey Snell
Stanton J. Feeley Audrey Snell
Chief Investment Officer Portfolio Manager
3
<PAGE>
SUNAMERICA EQUITY FUNDS
STATEMENT OF ASSETS AND LIABILITIES -- September 30, 1995
<TABLE>
<CAPTION>
BALANCED BLUE CHIP MID-CAP SMALL COMPANY GLOBAL GROWTH AND
ASSETS GROWTH GROWTH GROWTH BALANCED INCOME
FUND FUND FUND FUND FUND FUND
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investment securities,
at value (identified
cost $236,158,791;
$63,392,694;
$28,510,444;
$94,238,597;
$20,578,840 and
$3,921,404,
respectively).......... $261,665,945 $71,589,575 $34,430,713 $118,221,556 $22,127,483 $4,274,381
Short-term securities
(identified cost of
$569,000 on the Global
Balanced Fund)......... -- -- -- -- 569,000 --
Joint repurchase
agreements............. 15,638,000 4,715,000 3,059,000 19,896,000 121,000 1,881,000
Cash.................... 342,333 -- 548 719 93,816 732
Foreign cash............ -- -- -- -- 128,425 --
Receivable for
investments sold....... 15,015,794 6,705,700 11,356,656 23,577,696 1,271,173 52,865
Receivable for shares of
beneficial interest
sold................... 3,138,698 25,207 73,705 638,514 67,214 11,957
Interest and dividends
receivable............. 1,344,687 87,275 23,633 26,798 218,994 18,901
Prepaid expenses........ 11,209 32,317 6,124 7,429 840 111
Receivable from
investment adviser..... -- -- -- -- 11,623 13,253
Unrealized appreciation
of foreign currency
contracts.............. -- -- -- -- 283,650 --
Receivable for foreign
currency contracts
sold................... -- -- -- -- 521,653 --
Deferred organizational
expenses............... -- -- -- -- 3,212 1,036
------------ ----------- ----------- ------------ ----------- ----------
Total assets........... 297,156,666 83,155,074 48,950,379 162,368,712 25,418,083 6,254,236
------------ ----------- ----------- ------------ ----------- ----------
LIABILITIES:
Payable for investments
purchased.............. 8,815,756 348,800 1,535,577 1,536,032 942,954 140,000
Payable for securities
loaned................. 5,443,750 -- -- -- -- --
Payable for shares of
beneficial interest
redeemed............... 289,601 113,557 50,734 2,719,806 12,710 --
Accrued expenses........ 182,908 91,909 55,683 112,302 75,756 36,041
Investment advisory and
management fees
payable................ 168,922 48,920 30,451 96,799 20,067 3,441
Distribution and service
maintenance fees
payable................ 162,858 42,830 20,297 80,669 14,445 2,760
Dividends payable....... 61,706 -- -- -- -- 1,683
Due to custodian........ -- 569,262 -- -- -- --
Unrealized depreciation
of foreign currency
contracts.............. -- -- -- -- 239,008 --
Payable for foreign
currency contracts
purchased.............. -- -- -- -- 522,142 --
------------ ----------- ----------- ------------ ----------- ----------
Total liabilities...... 15,125,501 1,215,278 1,692,742 4,545,608 1,827,082 183,925
------------ ----------- ----------- ------------ ----------- ----------
Net assets.......... $282,031,165 $81,939,796 $47,257,637 $157,823,104 $23,591,001 $6,070,311
============ =========== =========== ============ =========== ==========
NET ASSETS WERE COMPOSED
OF:
Shares of beneficial
interest, $.01 par
value.................. $ 171,753 $ 47,527 $ 26,609 $ 64,401 $ 32,225 $ 7,238
Paid-in capital......... 244,330,954 66,179,940 36,123,768 105,152,255 22,568,503 5,445,561
------------ ----------- ----------- ------------ ----------- ----------
244,502,707 66,227,467 36,150,377 105,216,656 22,600,728 5,452,799
Accumulated
undistributed net
investment income...... 243,698 -- -- -- 871,462 2,915
Accumulated
undistributed net
realized gain (loss) on
investments............ 11,777,606 7,526,115 5,186,991 28,612,538 (3,146,792) 261,620
Accumulated net realized
gain (loss) on foreign
currency and other
assets and liabilities. -- (10,667) -- 10,951 1,671,033 --
Net unrealized
appreciation of
investments............ 25,507,154 8,196,881 5,920,269 23,982,959 1,548,643 352,977
Net unrealized
appreciation of foreign
currency, other assets
and liabilities........ -- -- -- -- 45,927 --
------------ ----------- ----------- ------------ ----------- ----------
Net assets.......... $282,031,165 $81,939,796 $47,257,637 $157,823,104 $23,591,001 $6,070,311
============ =========== =========== ============ =========== ==========
CLASS A (UNLIMITED
SHARES AUTHORIZED):
Net asset value and
redemption price per
share
($119,916,366/7,302,494;
$42,407,289/2,445,272;
$37,714,102/2,118,190;
$89,510,083/3,630,872;
$9,614,966/1,307,104
and $3,532,261/421,137
net assets and shares
of beneficial interest
issued and outstanding,
respectively........... $ 16.42 $ 17.34 $ 17.80 $ 24.65 $ 7.36 $ 8.39
Maximum sales charge
(5.75% of offering
price)................. 1.00 1.06 1.09 1.50 0.45 0.51
------------ ----------- ----------- ------------ ----------- ----------
Maximum offering price
to public.............. $ 17.42 $ 18.40 $ 18.89 $ 26.15 $ 7.81 $ 8.90
============ =========== =========== ============ =========== ==========
CLASS B (UNLIMITED
SHARES AUTHORIZED):
Net asset value,
offering and redemption
price per share
($162,114,799/9,872,779;
$39,532,507/2,307,431;
$9,543,535/542,752;
$68,313,021/2,809,180;
$13,976,035/1,915,347
and $2,538,050/302,621
net assets and shares
of beneficial interest
issued and outstanding,
respectively).......... $ 16.42 $ 17.13 $ 17.58 $ 24.32 $ 7.30 $ 8.39
============ =========== =========== ============ =========== ==========
</TABLE>
See Notes to Financial Statements
4
<PAGE>
SUNAMERICA EQUITY FUNDS
STATEMENT OF OPERATIONS -- For the year ended September 30, 1995
<TABLE>
<CAPTION>
BALANCED BLUE CHIP MID-CAP SMALL COMPANY GLOBAL GROWTH AND
ASSETS GROWTH GROWTH GROWTH BALANCED INCOME
FUND FUND FUND FUND FUND FUND
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Income:
Interest (net of
withholding taxes of
$956 on Global Balanced
Fund)................... $ 4,942,478 $ 253,003 $ 231,890 $ 1,097,775 $ 609,969 $ 96,252
Dividends (net of
withholding taxes of
$27,389, $5,333, $2,899,
$1,707, $40,293, and
$889, respectively) .... 4,015,774 1,302,059 223,932 391,999 366,522 105,515
----------- ----------- ----------- ----------- ---------- --------
Total investment income.. 8,958,252 1,555,062 455,822 1,489,774 976,491 201,767
----------- ----------- ----------- ----------- ---------- --------
Expenses:
Investment advisory and
management fees......... 1,821,586 565,835 294,505 819,449 269,441 32,455
Distribution and service
maintenance fees-Class
A....................... 237,888 42,755 115,641 187,524 44,919 11,338
Distribution and service
maintenance fees-Class
B....................... 1,749,100 632,288 62,270 556,816 141,100 10,876
Transfer agent fees and
expenses-Class A........ 193,217 47,893 93,922 155,365 31,674 8,357
Transfer agent fees and
expenses-Class B........ 484,587 174,235 23,037 160,957 39,736 8,412
Custodian fees and
expenses................ 117,005 67,220 61,920 91,545 196,515 48,290
Registration fees-Class
A....................... 12,313 8,186 12,884 19,527 9,712 10,219
Registration fees-Class
B....................... -- 16,918 7,908 19,315 12,594 7,609
Audit and tax consulting
fees.................... 46,222 16,040 16,170 33,470 14,445 10,360
Trustees' fees and
expenses................ 26,521 8,116 3,999 11,191 3,043 400
Printing expense......... 10,665 8,560 5,345 12,530 2,281 1,340
Insurance expense........ 6,098 2,196 1,004 2,316 163 83
Legal fees and expenses.. 5,330 3,685 1,388 3,915 2,285 1,735
Interest expense......... -- 14,080 1,645 -- -- --
Amortization of
organizational expenses. -- -- -- -- 876 16,343
Miscellaneous expenses... 12,876 3,158 2,425 3,258 17,443 1,530
----------- ----------- ----------- ----------- ---------- --------
Total expenses........... 4,723,408 1,611,165 704,063 2,077,178 786,227 169,347
Less: expenses
waived/reimbursed by
investment
adviser/distributor..... -- (13,179) (10,554) -- (115,214) (151,253)
----------- ----------- ----------- ----------- ---------- --------
Net expenses............. 4,723,408 1,597,986 693,509 2,077,178 671,013 18,094
----------- ----------- ----------- ----------- ---------- --------
Net investment income
(loss)................... 4,234,844 (42,924) (237,687) (587,404) 305,478 183,673
----------- ----------- ----------- ----------- ---------- --------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss)
on investments........... 13,383,399 7,615,892 7,432,643 31,433,571 (2,564,836) 346,652
Net realized gain (loss)
on foreign currency and
other assets and
liabilities.............. -- (10,667) -- 10,951 1,756,424 --
Net change in unrealized
appreciation/depreciation
of investments........... 28,115,267 6,757,773 3,253,371 15,112,125 1,847,343 297,243
Net change in unrealized
appreciation/depreciation
of foreign currency and
other assets and
liabilities.............. -- -- -- -- 42,526 --
----------- ----------- ----------- ----------- ---------- --------
Net realized and
unrealized gain (loss) on
investments, foreign
currency and other assets
and liabilities.......... 41,498,666 14,362,998 10,686,014 46,556,647 1,081,457 643,895
----------- ----------- ----------- ----------- ---------- --------
NET INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS: ............. $45,733,510 $14,320,074 $10,448,327 $45,969,243 $1,386,935 $827,568
=========== =========== =========== =========== ========== ========
</TABLE>
See Notes to Financial Statements
5
<PAGE>
SUNAMERICA EQUITY FUNDS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
BALANCED ASSETS FUND BLUE CHIP GROWTH FUND MID-CAP GROWTH FUND
---------------------------- --------------------------- ---------------------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
1995 1994 1995 1994 1995 1994
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
OPERATIONS:
Net investment income
(loss)................ $ 4,234,844 $ 3,273,547 $ (42,924) $ (29,169) $ (237,687) $ 103,839
Net realized gain
(loss) on investments. 13,383,399 10,239,438 7,615,892 8,104,529 7,432,643 (562,925)
Net realized loss on
foreign currency and
other assets and
liabilities........... -- -- (10,667) -- -- --
Net change in
unrealized
appreciation/
depreciation of
investments........... 28,115,267 (14,392,701) 6,757,773 (9,743,916) 3,253,371 (3,332,519)
------------ ------------ ----------- ----------- ----------- -----------
Increase (decrease) in
net assets resulting
from operations........ 45,733,510 (879,716) 14,320,074 (1,668,556) 10,448,327 (3,791,605)
------------ ------------ ----------- ----------- ----------- -----------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income (Class A)...... (1,892,197) (888,983) -- -- (81,917) --
From net investment
income (Class B)...... (4,315,134) (2,111,163) -- -- (10,723) --
From net realized gains
on investments (Class
A).................... (2,033,487) (701,263) (221,327) (15,869) -- (5,265,913)
From net realized gains
on investments (Class
B).................... (7,043,145) (3,102,237) (5,263,567) (3,262,131) -- (617,587)
------------ ------------ ----------- ----------- ----------- -----------
Total dividends and
distributions to
shareholders........... (15,283,963) (6,803,646) (5,484,894) (3,278,000) (92,640) (5,883,500)
------------ ------------ ----------- ----------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS (NOTE 8).. 18,827,961 69,599,491 (1,851,797) 128,688 (43,053) 11,701,924
------------ ------------ ----------- ----------- ----------- -----------
TOTAL INCREASE
(DECREASE) IN NET
ASSETS................. 49,277,508 61,916,129 6,983,383 (4,817,868) 10,312,634 2,026,819
NET ASSETS:
Beginning of period..... 232,753,657 170,837,528 74,956,413 79,774,281 36,945,003 34,918,184
------------ ------------ ----------- ----------- ----------- -----------
End of period [including
undistributed net
investment income
(loss) for September
30, 1995 and September
30, 1994 of $243,698,
$2,216,185; $0, $0; $0
and $92,829,
respectively].......... $282,031,165 $232,753,657 $81,939,796 $74,956,413 $47,257,637 $36,945,003
============ ============ =========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements
6
<PAGE>
SUNAMERICA EQUITY FUNDS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SMALL COMPANY GROWTH FUND GLOBAL BALANCED FUND GROWTH AND INCOME FUND
---------------------------- ---------------------------- ---------------------------
FOR THE
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE PERIOD FOR THE YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
1995 1994 1995 1994 (a) 1995 1994 (a)
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS:
OPERATIONS:
Net investment income
(loss).................. $ (587,404) $ (758,937) $ 305,478 $ 36,678 $ 183,673 $ 28,400
Net realized gain (loss)
on investments.......... 31,433,571 2,130,417 (2,564,836) (8,690) 346,652 (8,242)
Net realized gain (loss)
on foreign currency and
other assets and
liabilities............. 10,951 -- 1,756,424 (85,391) -- --
Net change in unrealized
appreciation/depreciation
of investments.......... 15,112,125 (7,542,139) 1,847,343 (298,700) 297,243 55,734
Net change in unrealized
appreciation/depreciation
of foreign currency and
other assets and
liabilities............. -- -- 42,526 3,401 -- --
------------ ----------- ----------- ----------- ---------- ----------
Increase (decrease) in net
assets resulting from
operations............... 45,969,243 (6,170,659) 1,386,935 (352,702) 827,568 75,892
------------ ----------- ----------- ----------- ---------- ----------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income (Class A)........ -- -- (24,601) -- (127,668) (25,414)
From net investment
income (Class B)........ -- -- (12,084) -- (54,591) (1,485)
From net realized gains
on investments (Class
A)...................... (985,792) (3,220,794) (3,604) -- (63,470) --
From net realized gains
on investments (Class
B)...................... (1,122,738) (3,913,206) (3,671) -- (13,320) --
------------ ----------- ----------- ----------- ---------- ----------
Total dividends and
distributions to
shareholders............. (2,108,530) (7,134,000) (43,960) -- (259,049) (26,899)
------------ ----------- ----------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
CAPITAL SHARE
TRANSACTIONS (NOTE 8).... 23,184,310 25,945,929 (4,383,749) 26,984,477 2,174,079 3,278,720
------------ ----------- ----------- ----------- ---------- ----------
TOTAL INCREASE (DECREASE)
IN NET ASSETS............ 67,045,023 12,641,270 (3,040,774) 26,631,775 2,742,598 3,327,713
NET ASSETS:
Beginning of period....... 90,778,081 78,136,811 26,631,775 -- 3,327,713 --
------------ ----------- ----------- ----------- ---------- ----------
End of period [including
undistributed net
investment income for
September 30, 1995 and
September 30, 1994 $0,
$0; $871,462, $36,678;
$2,915 and $1,501,
respectively]............ $157,823,104 $90,778,081 $23,591,001 $26,631,775 $6,070,311 $3,327,713
============ =========== =========== =========== ========== ==========
</TABLE>
- ------------
(a) For the periods beginning June 15, 1994 and July 1, 1994 for the Global
Balanced Fund and Growth and Income Fund, respectively.
See Notes to Financial Statements
7
<PAGE>
SUNAMERICA EQUITY FUNDS
FINANCIAL HIGHLIGHTS
BALANCED ASSETS FUND
<TABLE>
<CAPTION>
NET
GAIN(LOSS)
ON INVEST- TOTAL DIVIDENDS DISTRI-
NET ASSET NET MENTS (BOTH FROM FROM NET BUTIONS NET ASSET NET ASSETS
VALUE, INVEST- REALIZED INVEST- INVEST- FROM TOTAL VALUE, END OF
PERIOD BEGINNING MENT AND MENT MENT CAPITAL DISTRI- END OF TOTAL PERIOD
ENDED OF PERIOD INCOME(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) (000'S)
- ---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ----------
<CAPTION>
CLASS A
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/24/93-
09/30/93(3).... $15.07 $ -- $ 0.06 $ 0.06 $ -- $ -- $ -- $15.13 0.40% $ 33,381
09/30/94........ 15.13 0.30 (0.23) 0.07 (0.28) (0.30) (0.58) 14.62 0.50 52,098
09/30/95........ 14.62 0.32 2.51 2.83 (0.45) (0.58) (1.03) 16.42 20.68 119,916
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED NET ASSETS NET ASSETS TURNOVER
- ---------------- ------------- -------------- ---------
<S> <C> <C> <C>
09/24/93-
09/30/93(3).... 1.54%(4) 0.46%(4) 25%
09/30/94........ 1.58 2.00 141
09/30/95........ 1.50 2.13 130
NET
GAIN(LOSS)
ON INVEST- TOTAL DIVIDENDS DISTRI-
NET ASSET NET MENTS (BOTH FROM FROM NET BUTIONS NET ASSET NET ASSETS
VALUE, INVEST- REALIZED INVEST- INVEST- FROM TOTAL VALUE, END OF
PERIOD BEGINNING MENT AND MENT MENT CAPITAL DISTRI- END OF TOTAL PERIOD
ENDED OF PERIOD INCOME(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) (000'S)
- ---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ----------
CLASS B
06/30/92(5)..... $15.75 $0.33 $ 0.98 $ 1.31 $(0.42) $(1.01) $(1.43) $15.63 7.51% $ 83,234
06/30/93(5)..... 15.63 0.30 2.63 2.93 (0.30) (2.40) (2.70) 15.86 20.29 113,871
07/01/93-
09/30/93(5).... 15.86 0.05 0.49 0.54 (0.06) (1.21) (1.27) 15.13 3.44 137,456
09/30/94........ 15.13 0.20 (0.23) (0.03) (0.18) (0.30) (0.48) 14.62 (0.14) 180,655
09/30/95........ 14.62 0.23 2.51 2.74 (0.36) (0.58) (0.94) 16.42 19.96 162,115
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED NET ASSETS NET ASSETS TURNOVER
- ---------------- ------------- -------------- ---------
<S> <C> <C> <C>
06/30/92(5)..... 1.93%(6) 2.04%(6) 151%
06/30/93(5)..... 1.91(6) 1.94(6) 251
07/01/93-
09/30/93(5).... 2.10(4)(6) 1.36(4)(6) 25
09/30/94........ 2.21 1.36 141
09/30/95........ 2.12 1.59 130
</TABLE>
- --------------------------------------------------------------------------------
BLUE CHIP GROWTH FUND
<TABLE>
<CAPTION>
NET
GAIN(LOSS)
ON INVEST- TOTAL DIVIDENDS DISTRI-
NET ASSET NET MENTS (BOTH FROM FROM NET BUTIONS NET ASSET NET ASSETS
VALUE, INVEST- REALIZED INVEST- INVEST- FROM TOTAL VALUE, END OF
PERIOD BEGINNING MENT AND MENT MENT CAPITAL DISTRI- END OF TOTAL PERIOD
ENDED OF PERIOD INCOME UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) (000'S)
- ---------------- --------- ------- ----------- ---------- --------- ------- ------- --------- --------- ----------
<CAPTION>
CLASS A
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/08/93-
9/30/94(3)..... $16.24 $ 0.09(1) $(0.26) $(0.17) $ -- $(0.65) $(0.65) $15.42 (1.05)% $ 3,207
09/30/95........ 15.42 0.02(1) 2.99 3.01 -- (1.09) (1.09) 17.34 21.29 42,407
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED NET ASSETS NET ASSETS TURNOVER
- ---------------- -------------- -------------- ---------
<S> <C> <C> <C>
10/08/93-
9/30/94(3)..... 1.64%(4)(6) 0.65%(4)(6) 170%
09/30/95........ 1.58(6) 0.11(6) 251
NET
GAIN(LOSS)
ON INVEST- TOTAL DIVIDENDS DISTRI-
NET ASSET NET MENTS (BOTH FROM FROM NET BUTIONS NET ASSET NET ASSETS
VALUE, INVEST- REALIZED INVEST- INVEST- FROM TOTAL VALUE, END OF
PERIOD BEGINNING MENT AND MENT MENT CAPITAL DISTRI- END OF TOTAL PERIOD
ENDED OF PERIOD INCOME UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) (000'S)
- ---------------- --------- ------- ----------- ---------- --------- ------- ------- --------- --------- ----------
CLASS B
12/31/91(5)..... $ 9.65 $(0.06) $ 2.94 $ 2.88 $ -- $ -- $ -- $12.53 29.84% $105,734
12/31/92(5)..... 12.53 (0.13) 1.19 1.06 -- -- -- 13.59 8.46 83,237
1/01/93-
9/30/93(5)..... 13.59 (0.02)(1) 2.71 2.69 -- -- -- 16.28 19.79 79,774
9/30/94......... 16.28 (0.01)(1) (0.28) (0.29) -- (0.65) (0.65) 15.34 (1.81) 71,749
9/30/95......... 15.34 (0.01)(1) 2.89 2.88 -- (1.09) (1.09) 17.13 20.51 39,533
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED NET ASSETS NET ASSETS TURNOVER
- ---------------- -------------- -------------- ---------
12/31/91(5)..... 2.50% (0.42) % 79%
12/31/92(5)..... 2.53 (0.75) 192
1/01/93-
9/30/93(5)..... 2.46(4) (0.14) (4) 171
9/30/94......... 2.28 (0.05) 170
9/30/95......... 2.22 (0.09) 251
</TABLE>
- ------------
(1) Calculated based upon average shares outstanding
(2) Total return is not annualized and does not reflect sales load
(3) Commencement of sale of respective class of shares
(4) Annualized
(5) Pursuant to a reorganization of the SunAmerica Mutual Funds, the Equity
Funds fiscal year ends were changed to September 30
(6) Net of the following expense reimbursements (based on average net assets):
<TABLE>
<CAPTION>
6/30/92 6/30/93 9/30/93 9/30/94 9/30/95
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Balanced Assets Class B.............. .12% .05% .04% -- --
Blue Chip Growth Class A............. -- -- -- 1.66% .11%
</TABLE>
See Notes to Financial Statements
8
<PAGE>
SUNAMERICA EQUITY FUNDS
FINANCIAL HIGHLIGHTS
MID-CAP GROWTH FUND
<TABLE>
<CAPTION>
NET
GAIN(LOSS)
ON INVEST- TOTAL DIVIDENDS DISTRI-
NET ASSET NET MENTS (BOTH FROM FROM NET BUTIONS NET ASSET NET ASSETS
VALUE, INVEST- REALIZED INVEST- INVEST- FROM TOTAL VALUE, END OF
PERIOD BEGINNING MENT AND MENT MENT CAPITAL DISTRI- END OF TOTAL PERIOD
ENDED OF PERIOD INCOME UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(1) (000'S)
- ---------------- --------- ------- ----------- ---------- --------- ------- ------- --------- --------- ----------
<CAPTION>
CLASS A
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/91(4)..... $12.90 $ 0.16 $ 3.09 $ 3.25 $(0.25) $(2.60) $(2.85) $13.30 31.13% $29,142
11/30/92(4)..... 13.30 (0.07) 2.87 2.80 (0.02) (0.44) (0.46) 15.64 21.42 30,024
12/01/92-
9/30/93(4)..... 15.64 (0.09)(2) 3.17 3.08 -- (0.69) (0.69) 18.03 20.42 34,918
9/30/94......... 18.03 0.04 (2) (1.64) (1.60) -- (2.65) (2.65) 13.78 (9.60) 32,906
9/30/95......... 13.78 (0.08)(2) 4.14 4.06 (0.04) -- (0.04) 17.80 29.51 37,714
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED NET ASSETS NET ASSETS TURNOVER
- ---------------- -------------- ---------------- ---------
<S> <C> <C> <C>
11/30/91(4)..... 1.76% 1.20 % 225%
11/30/92(4)..... 1.76 (0.46) 98
12/01/92-
9/30/93(4)..... 1.81(3) 1.18 (3) 231
9/30/94......... 1.76 0.28 555
9/30/95......... 1.66 (0.51) 392
NET
GAIN(LOSS)
ON INVEST- TOTAL DIVIDENDS DISTRI-
NET ASSET NET MENTS (BOTH FROM FROM NET BUTIONS NET ASSET NET ASSETS
VALUE, INVEST- REALIZED INVEST- INVEST- FROM TOTAL VALUE, END OF
PERIOD BEGINNING MENT AND MENT MENT CAPITAL DISTRI- END OF TOTAL PERIOD
ENDED OF PERIOD INCOME UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(1) (000'S)
- ---------------- --------- ------- ----------- ---------- --------- ------- ------- --------- --------- ----------
CLASS B
10/04/93-
9/30/94(5)..... $18.12 $ 0.03 (2) $(1.80) $(1.77) $ -- $(2.65) $(2.65) $13.70 (10.56)% $ 4,039
9/30/95......... 13.70 (0.18) (2) 4.08 3.90 (0.02) -- (0.02) 17.58 28.55 9,544
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED NET ASSETS NET ASSETS TURNOVER
- ---------------- -------------- ---------------- ---------
<S> <C> <C> <C>
10/04/93-
9/30/94(5)..... 2.43%(3)(6) 0.20 %(3)(6) 555%
9/30/95......... 2.31(7) (0.17)(7) 392
</TABLE>
- -------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
<TABLE>
<CAPTION>
NET
GAIN(LOSS)
ON INVEST- TOTAL DIVIDENDS DISTRI-
NET ASSET NET MENTS (BOTH FROM FROM NET BUTIONS NET ASSET NET ASSETS RATIO OF
VALUE, INVEST- REALIZED INVEST- INVEST- FROM TOTAL VALUE, END OF EXPENSES
PERIOD BEGINNING MENT AND MENT MENT CAPITAL DISTRI- END OF TOTAL PERIOD TO AVERAGE
ENDED OF PERIOD INCOME(2) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(1) (000'S) NET ASSETS
- ---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ---------- ----------
<CAPTION>
CLASS A
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/91(4)(8).. $11.88 $(0.01) $ 4.92 $ 4.91 $ -- $(2.91) $(2.91) $13.88 52.05% $27,832 1.86%
11/30/92(4)(8).. 13.88 (0.12) 3.39 3.27 -- (0.69) (0.69) 16.46 24.31 32,056 1.90
12/01/92-
9/30/93(4)(8).. 16.46 (0.02) 4.07 4.05 -- (0.73) (0.73) 19.78 25.68 39,238 1.83(3)
9/30/94......... 19.78 (0.10) (1.40) (1.50) -- (1.46) (1.46) 16.82 (7.74) 38,570 1.67
9/30/95......... 16.82 (0.04) 8.28 8.24 -- (0.41) (0.41) 24.65 50.00 89,510 1.57
RATIO OF NET
INVESTMENT
INCOME
PERIOD TO AVERAGE PORTFOLIO
ENDED NET ASSETS TURNOVER
- ---------------- ------------- ---------
<S> <C> <C>
11/30/91(4)(8).. (0.06)% 110%
11/30/92(4)(8).. (0.88) 209
12/01/92-
9/30/93(4)(8).. (0.15)(3) 216
9/30/94......... (0.60) 411
9/30/95......... (0.22) 351
NET
GAIN(LOSS)
ON INVEST- TOTAL DIVIDENDS DISTRI-
NET ASSET NET MENTS (BOTH FROM FROM NET BUTIONS NET ASSET NET ASSETS RATIO OF
VALUE, INVEST- REALIZED INVEST- INVEST- FROM TOTAL VALUE, END OF EXPENSES
PERIOD BEGINNING MENT AND MENT MENT CAPITAL DISTRI- END OF TOTAL PERIOD TO AVERAGE
ENDED OF PERIOD INCOME(2) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(1) (000'S) NET ASSETS
- ---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ---------- ----------
CLASS B
9/24/93-
9/30/93(5)..... $19.66 $ -- $ 0.12 $ 0.12 $ -- $ -- $ -- $19.78 0.61% $38,898 2.34%(3)
9/30/94......... 19.78 (0.20) (1.42) (1.62) -- (1.46) (1.46) 16.70 (8.40) 52,208 2.31
9/30/95......... 16.70 (0.16) 8.19 8.03 -- (0.41) (0.41) 24.32 49.08 68,313 2.22
RATIO OF NET
INVESTMENT
INCOME
PERIOD TO AVERAGE PORTFOLIO
ENDED NET ASSETS TURNOVER
- ---------------- ------------- ---------
<S> <C> <C>
9/24/93-
9/30/93(5)..... (1.70)%(3) 216%
9/30/94......... (1.23) 411
9/30/95......... (0.84) 351
</TABLE>
- -----------
(1) Total return is not annualized and does not reflect sales load
(2) Calculated based upon average shares outstanding
(3) Annualized
(4) Pursuant to a reorganization of the SunAmerica Mutual Funds, the Equity
Funds fiscal year ends were changed to September 30
(5) Commencement of sale of respective class of shares
(6) Net of expense reimbursement equivalent to .48% of average net assets for
the period ended 9/30/94
(7) Net of expense reimbursement equivalent to .17% of average net assets for
the year ended 9/30/95
(8) Restated to reflect a 0.984460367 for 1.00 stock split effective September
24, 1993
See Notes to Financial Statements
9
<PAGE>
SUNAMERICA EQUITY FUNDS
FINANCIAL HIGHLIGHTS
GLOBAL BALANCED FUND
<TABLE>
<CAPTION>
NET
GAIN(LOSS)
ON INVEST- TOTAL DIVIDENDS DISTRI-
NET ASSET NET MENTS (BOTH FROM FROM NET BUTIONS NET ASSET NET ASSETS
VALUE, INVEST- REALIZED INVEST- INVEST- FROM TOTAL VALUE, END OF
PERIOD BEGINNING MENT AND MENT MENT CAPITAL DISTRI- END OF TOTAL PERIOD
ENDED OF PERIOD INCOME(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) (000'S)
- ---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ----------
<CAPTION>
CLASS A
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/15/94-
9/30/94(3)..... $6.94 $0.02 $(0.05) $(0.03) $ -- $ -- $ -- $6.91 (0.43)% $13,100
9/30/95......... 6.91 0.10 0.36 0.46 (0.01) -- (0.01) 7.36 6.72 9,615
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED NET ASSETS NET ASSETS TURNOVER
- ---------------- -------------- --------------- ---------
<S> <C> <C> <C>
6/15/94-
9/30/94(3)..... 2.15%(4)(5) 0.93%(4)(5) 18%
9/30/95......... 2.15(5) 1.36(5) 169
NET
GAIN(LOSS)
ON INVEST- TOTAL DIVIDENDS DISTRI-
NET ASSET NET MENTS (BOTH FROM FROM NET BUTIONS NET ASSET NET ASSETS
VALUE, INVEST- REALIZED INVEST- INVEST- FROM TOTAL VALUE, END OF
PERIOD BEGINNING MENT AND MENT MENT CAPITAL DISTRI- END OF TOTAL PERIOD
ENDED OF PERIOD INCOME(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) (000'S)
- ---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ----------
CLASS B
6/16/94-
9/30/94(3)..... $6.94 $0.01 $(0.05) $(0.04) $ -- $ -- $ -- $6.90 (0.58)% $13,532
9/30/95......... 6.90 0.05 0.36 0.41 (0.01) -- (0.01) 7.30 5.91 13,976
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED NET ASSETS NET ASSETS TURNOVER
- ---------------- -------------- --------------- ---------
6/16/94-
9/30/94(3)..... 2.80%(4)(5) 0.33%(4)(5) 18%
9/30/95......... 2.80(5) 0.75(5) 169
</TABLE>
- --------------------------------------------------------------------------------
GROWTH AND INCOME FUND
<TABLE>
<CAPTION>
NET
GAIN(LOSS)
ON INVEST- TOTAL DIVIDENDS DISTRI-
NET ASSET NET MENTS (BOTH FROM FROM NET BUTIONS NET ASSET NET ASSETS
VALUE, INVEST- REALIZED INVEST- INVEST- FROM TOTAL VALUE, END OF
PERIOD BEGINNING MENT AND MENT MENT CAPITAL DISTRI- END OF TOTAL PERIOD
ENDED OF PERIOD INCOME(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) (000'S)
- ---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ----------
<CAPTION>
CLASS A
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/01/94-
9/30/94(3)..... $7.33 $0.07 $0.10 $0.17 $(0.06) $ -- $(0.06) $7.44 2.34% $3,098
9/30/95......... 7.44 0.32 1.08 1.40 (0.30) (0.15) (0.45) 8.39 19.53 3,532
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED NET ASSETS NET ASSETS TURNOVER
- ---------------- ------------- -------------- ---------
<S> <C> <C> <C>
7/01/94-
9/30/94(3)..... 1.50%(4)(5) 3.48%(4)(5) 8%
9/30/95......... 0.46(5) 4.16(5) 230
NET
GAIN(LOSS)
ON INVEST- TOTAL DIVIDENDS DISTRI-
NET ASSET NET MENTS (BOTH FROM FROM NET BUTIONS NET ASSET NET ASSETS
VALUE, INVEST- REALIZED INVEST- INVEST- FROM TOTAL VALUE, END OF
PERIOD BEGINNING MENT AND MENT MENT CAPITAL DISTRI- END OF TOTAL PERIOD
ENDED OF PERIOD INCOME(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) (000'S)
- ---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ----------
CLASS B
7/06/94-
9/30/94(3)..... $7.33 $0.05 $0.11 $0.16 $(0.05) $ -- $(0.05) $7.44 2.19% $ 229
9/30/95......... 7.44 0.35 1.03 1.38 (0.28) (0.15) (0.43) 8.39 19.19 2,538
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED NET ASSETS NET ASSETS TURNOVER
- ---------------- ------------- -------------- ---------
<S> <C> <C> <C>
7/06/94-
9/30/94(3)..... 2.15%(4)(5) 2.86%(4)(5) 8%
9/30/95......... 0.30(5) 4.48(5) 230
</TABLE>
- ------------
(1) Calculated based upon average shares outstanding
(2) Total return is not annualized and does not reflect sales load
(3) Commencement of sale of respective class of shares
(4) Annualized
(5) Net of the following expense reimbursements (based on average net assets):
<TABLE>
<CAPTION>
9/30/94 9/30/95
------- -------
<S> <C> <C>
Global Balanced Class A...................................... 1.14% .40%
Global Balanced Class B...................................... .93 .45
Growth and Income Class A.................................... 4.48 2.96
Growth and Income Class B.................................... 20.35 5.07
</TABLE>
See Notes to Financial Statements
10
<PAGE>
SUNAMERICA BALANCED ASSETS FUND
PORTFOLIO OF INVESTMENTS -- September 30, 1995
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- ------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK--65.8%
AEROSPACE & MILITARY TECHNOLOGY--0.6%
Boeing Co. .............................................. 25,000 $ 1,706,250
-----------
APPAREL & TEXTILES--1.8%
NIKE, Inc. .............................................. 20,000 2,222,500
Reebok International Ltd. ............................... 30,000 1,031,250
Warnaco Group, Inc....................................... 75,000 1,800,000
-----------
5,053,750
-----------
AUTOMOTIVE--2.8%
Chrysler Corp. .......................................... 70,000 3,710,000
Ford Motor Co. .......................................... 30,000 933,750
General Motors Corp. .................................... 30,000 1,406,250
Goodyear Tire & Rubber Co. .............................. 50,000 1,968,750
-----------
8,018,750
-----------
BANKS--5.3%
Bank Of Boston Corp. .................................... 40,000 1,905,000
Citicorp................................................. 50,000 3,537,500
First Bank Systems, Inc. ................................ 25,000 1,203,125
First Interstate Bancorp................................. 15,000 1,511,250
Mellon Bank Corp. ....................................... 25,000 1,115,625
Shawmut National Corp. .................................. 50,000 1,681,250
Summit Bancorp........................................... 100,000 2,787,500
UJB Financial Corp. ..................................... 40,000 1,280,000
-----------
15,021,250
-----------
BROADCASTING & MEDIA--1.8%
Disney (Walt) Co. ....................................... 25,000 1,434,375
Scripps (E.W.) Co., Class A.............................. 25,000 865,625
Time Warner, Inc. ....................................... 30,000 1,192,500
Viacom, Inc.+............................................ 30,000 1,492,500
-----------
4,985,000
-----------
BUSINESS SERVICES--0.4%
ITT Corp. ............................................... 10,000 1,240,000
-----------
CHEMICALS--1.2%
Cabot Corp. ............................................. 33,700 1,790,313
du Pont (E.I.) de Nemours & Co. ......................... 20,000 1,375,000
-----------
3,165,313
-----------
COMMUNICATION EQUIPMENT--2.6%
Ericsson (L.M.) Telephone Co. Class B ADR(1)............. 30,000 735,000
Motorola, Inc. .......................................... 40,000 3,055,000
Nokia Corp. ADR(1)....................................... 20,000 1,395,000
United Technologies Corp. ............................... 25,000 2,209,375
-----------
7,394,375
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
COMPUTERS & BUSINESS EQUIPMENT--0.2%
International Business Machines Corp. .................... 5,000 $ 471,875
-----------
CONGLOMERATE--1.7%
AlliedSignal, Inc. ....................................... 50,000 2,206,250
General Electric Co....................................... 40,000 2,550,000
-----------
4,756,250
-----------
DEPARTMENT STORES--3.9%
Dayton Hudson Corp. ...................................... 25,000 1,896,875
Dillard Department Stores, Inc. .......................... 50,000 1,593,750
Penney (J.C.), Inc. ...................................... 40,000 1,985,000
Woolworth Corp. .......................................... 350,000 5,512,500
-----------
10,988,125
-----------
ELECTRONICS--1.3%
Micron Technology, Inc. .................................. 10,000 795,000
Texas Instruments, Inc. .................................. 20,000 1,597,500
Xerox Corp. .............................................. 10,000 1,343,750
-----------
3,736,250
-----------
ENERGY SERVICES--3.6%
Baker Hughes, Inc. ....................................... 70,000 1,426,250
BJ Services Co.+.......................................... 50,000 1,262,500
Halliburton Co. .......................................... 50,000 2,087,500
Rowan Cos., Inc.+......................................... 90,000 675,000
Schlumberger Ltd. ADR(1).................................. 30,000 1,957,500
Sonat Offshore Drilling, Inc. ............................ 28,000 913,500
Tenneco, Inc. ............................................ 40,557 1,875,761
-----------
10,198,011
-----------
ENERGY SOURCES--3.4%
Amerada Hess Corp. ....................................... 15,000 729,375
Amoco Corp. .............................................. 15,000 961,875
Anadarko Petroleum Corp. ................................. 20,000 947,500
Burlington Resources, Inc. ............................... 50,000 1,937,500
Chevron Corp. ............................................ 10,000 486,250
Exxon Corp. .............................................. 20,000 1,445,000
Kerr-McGee Corp. ......................................... 25,000 1,387,500
Pacific Enterprises....................................... 50,000 1,256,250
Reading & Bates Corp. .................................... 45,000 540,000
-----------
9,691,250
-----------
FINANCIAL SERVICES--2.4%
Capital One Financial Corp. .............................. 25,000 734,375
Dean Witter, Discover & Co. .............................. 25,000 1,406,250
First USA, Inc. .......................................... 40,000 2,170,000
</TABLE>
11
<PAGE>
SUNAMERICA BALANCED ASSETS FUND
PORTFOLIO OF INVESTMENTS -- September 30, 1995 -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
FINANCIAL SERVICES (CONTINUED)
Golden West Financial Corp. ............................... 25,000 $ 1,262,501
MBNA Corp. ................................................ 30,000 1,248,750
------------
6,821,876
------------
FOOD, BEVERAGE & TOBACCO--2.3%
Coca-Cola Co. ............................................. 20,000 1,380,000
Heinz (H.J.) Co. .......................................... 85,000 3,888,750
Quaker Oats Co. ........................................... 10,000 331,250
RJR Nabisco Holdings Corp. ................................ 30,000 971,250
------------
6,571,250
------------
FOREST PRODUCTS--0.4%
Stone Container Corp.+..................................... 60,000 1,140,000
------------
HEALTH SERVICES--7.3%
Amerisource Health Corp. .................................. 30,000 810,000
Caremark International, Inc. .............................. 75,000 1,612,500
Foundation Health Corp.+................................... 50,000 1,906,250
Health Systems International, Inc. ........................ 35,300 1,063,412
HEALTHSOUTH Rehabilitation+................................ 60,000 1,530,000
Humana, Inc.+.............................................. 40,000 805,000
McKesson Corp. ............................................ 25,000 1,125,000
OrNda Healthcorp+.......................................... 40,000 850,000
Pacificare Health Systems, Inc.+........................... 55,000 3,740,000
U.S. HealthCare, Inc. ..................................... 60,000 2,122,500
United Healthcare Corp. ................................... 45,000 2,199,375
Vencor, Inc.+.............................................. 88,825 2,842,400
------------
20,606,437
------------
HOTELS & CASINOS--0.5%
Hilton Hotels Corp. ....................................... 20,000 1,277,500
------------
HOUSEHOLD PRODUCTS--0.6%
Avon Products.............................................. 20,000 1,435,000
------------
INSURANCE--3.4%
Aetna Life & Casualty Co. ................................. 75,000 5,503,125
Equitable Cos., Inc. ...................................... 60,000 1,470,000
St. Paul Cos., Inc. ....................................... 25,000 1,459,375
Travelers Group, Inc. ..................................... 22,000 1,168,750
------------
9,601,250
------------
MACHINERY--0.5%
Millipore Corp. ........................................... 40,000 1,500,000
------------
MEDICAL PRODUCTS--4.5%
Abbott Laboratories........................................ 25,000 1,065,625
Amgen, Inc.+............................................... 40,000 1,995,000
Becton Dickinson & Co. .................................... 30,000 1,886,250
Chiron Corp.+.............................................. 15,000 1,357,500
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
MEDICAL PRODUCTS (CONTINUED)
Medtronic, Inc. ........................................... 80,000 $ 4,300,000
Perkin Elmer Corp. ........................................ 30,000 1,068,750
Scherer (R.P.) Corp. ADR(1)+............................... 25,000 1,084,375
------------
12,757,500
------------
METALS & MINING--0.4%
Aluminum Co. of America.................................... 20,000 1,057,500
Carbide/Graphite Group, Inc.+.............................. 2,000 28,250
------------
1,085,750
------------
PHARMACEUTICALS--7.0%
American Home Products Corp. .............................. 20,000 1,697,500
Biogen, Inc.+.............................................. 10,000 600,000
Depotech Corp.+............................................ 20,000 280,000
Glaxo Holdings PLC ADR(1).................................. 50,000 1,206,250
IVAX Corp. ................................................ 40,000 1,205,000
Lilly (Eli) & Co. ......................................... 15,000 1,348,125
Merck & Co., Inc. ......................................... 44,000 2,464,000
Pfizer, Inc. .............................................. 30,000 1,601,250
Schering-Plough Corp. ..................................... 40,000 2,060,000
Smithkline Beecham PLC ADR(1).............................. 35,000 1,771,875
Teva Pharmaceutical Industries Ltd. ADR(1)................. 30,000 1,083,750
Warner-Lambert Co. ........................................ 45,000 4,286,250
------------
19,604,000
------------
POLLUTION CONTROL--0.4%
Browning-Ferris Industries, Inc. .......................... 40,000 1,215,000
------------
REAL ESTATE COMPANIES--0.4%
Healthcare Realty Trust.................................... 55,000 1,141,250
------------
SPECIALTY RETAIL--1.4%
Barnes & Noble, Inc.+...................................... 20,000 765,000
Home Depot, Inc.+.......................................... 50,000 1,993,750
Lowe's Cos., Inc. ......................................... 40,000 1,200,000
------------
3,958,750
------------
TELECOMMUNICATIONS--3.0%
AT&T Corp. ................................................ 60,000 3,945,000
Frontier Corp. ............................................ 50,000 1,331,250
PanAmSat Corp. ............................................ 75,000 1,143,750
Tele Danmark A/S ADR(1).................................... 40,000 1,035,000
Worldcom, Inc.+............................................ 28,000 899,500
------------
8,354,500
------------
TRANSPORTATION--0.7%
Union Pacific Corp. ....................................... 30,000 1,987,500
------------
TOTAL COMMON STOCK
(cost $160,846,297)........................................ 185,484,012
------------
</TABLE>
12
<PAGE>
SUNAMERICA BALANCED ASSETS FUND
PORTFOLIO OF INVESTMENTS -- September 30, 1995 -- (continued)
<TABLE>
<CAPTION>
SHARES/RIGHTS
PRINCIPAL AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
PREFERRED STOCK--1.3%
ENERGY SERVICES--1.3%
Occidental Petroleum Corp. (cost $3,000,000)..... 60,000 $ 3,532,500
------------
RIGHTS--0.0%
Ericsson (L.M.) Telephone Co. ADR(1)
(cost $0)....................................... 60,000 0
------------
BONDS & NOTES--4.4%
APPAREL & TEXTILES--1.1%
Bass America, Inc.
8.13% due 3/31/02............................... $ 3,000 3,222,510
------------
BANKS--0.7%
Chase Manhattan Corp.
7.88% due 8/01/04............................... 2,000 2,046,120
------------
COMPUTERS & BUSINESS EQUIPMENT--0.9%
Apple Computer, Inc.
6.50% due 2/15/04............................... 2,500 2,411,925
------------
FINANCIAL SERVICES--1.7%
Bear Stearns Cos, Inc.
6.63% due 1/15/04............................... 5,000 4,875,850
------------
TOTAL BONDS & NOTES
(cost $12,007,995)............................... 12,556,405
------------
U.S. TREASURY NOTES--18.9%
4.38% due 8/15/96................................ 5,000 4,942,950
5.13% due 2/28/98................................ 5,000 4,915,600
5.50% due 9/30/97-4/15/00........................ 7,750 7,649,042
5.75% due 8/15/03................................ 7,000 6,810,790
6.50% due 8/15/05................................ 2,500 2,561,325
6.75% due 5/31/99................................ 5,000 5,123,450
6.88% due 7/31/99................................ 8,000 8,237,520
7.25% due 2/15/98................................ 3,300 3,396,921
7.50% due 2/15/05(2)............................. 5,000 5,446,100
9.25% due 8/15/98................................ 4,000 4,346,240
------------
53,429,938
------------
TOTAL U.S. TREASURY NOTES
(cost $53,437,780)............................... 53,429,938
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
<S> <C> <C>
U.S. TREASURY BONDS--2.4%
6.25% due 8/15/23
(cost $6,866,719)............................... $ 7,000 $ 6,663,090
------------
TOTAL INVESTMENT SECURITIES--92.8%
(cost $236,158,791)............................. 261,665,945
------------
REPURCHASE AGREEMENT--5.5%
Joint Repurchase Agreement Account (Note 3)
(cost $15,638,000).............................. 15,638 15,638,000
------------
TOTAL INVESTMENTS--
(cost $251,796,791)............................. 98.3% 277,303,945
Other assets less liabilities.................... 1.7 4,727,220
-----
------------
NET ASSETS-- 100.0% $282,031,165
===== ============
</TABLE>
- --------
+Non-income producing securities
(1)ADR ("American Depositary Receipts")
(2)Security on Loan, see Note 2
See Notes to Financial Statements
13
<PAGE>
SUNAMERICA BLUE CHIP GROWTH FUND
PORTFOLIO OF INVESTMENTS -- September 30, 1995
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK--87.4%
AEROSPACE & MILITARY TECHNOLOGY--1.2%
Boeing Co. ................................................. 15,000 $ 1,023,750
-----------
APPAREL & TEXTILES--2.2%
NIKE, Inc. ................................................. 10,000 1,111,250
Reebok International Ltd. .................................. 20,000 687,500
-----------
1,798,750
-----------
AUTOMOTIVE--2.8%
Chrysler Corp. ............................................. 25,000 1,325,000
General Motors Corp. ....................................... 20,000 937,500
-----------
2,262,500
-----------
BANKS--5.1%
BankAmerica Corp. .......................................... 15,000 898,125
Citicorp.................................................... 10,000 707,500
Signet Banking Corp. ....................................... 25,000 656,250
Standard Federal Bancorporation............................. 30,000 1,170,000
Summit Bancorp.............................................. 27,500 766,562
-----------
4,198,437
-----------
BROADCASTING & MEDIA--3.5%
Scholastic Corp.+........................................... 20,000 1,255,000
Time Warner, Inc. .......................................... 15,000 596,250
Viacom, Inc. Class B+....................................... 20,000 995,000
-----------
2,846,250
-----------
BUSINESS SERVICES--0.7%
Transaction Network Services, Inc.+......................... 20,000 537,500
-----------
CHEMICALS--2.5%
Cabot Corp.................................................. 26,100 1,386,563
du Pont (E.I.) de Nemours & Co. ............................ 10,000 687,500
-----------
2,074,063
-----------
COMMUNICATION EQUIPMENT--4.4%
Adtran, Inc.+............................................... 20,000 695,000
Ericsson (L.M.) Telephone Co. Class B ADR(1)................ 30,000 735,000
Motorola, Inc. ............................................. 10,000 763,750
Nokia Corp. ADR(1).......................................... 20,000 1,395,000
-----------
3,588,750
-----------
COMPUTERS & BUSINESS EQUIPMENT--3.2%
BT Office Products International, Inc.+..................... 72,000 945,000
Madge NV+................................................... 25,000 800,000
StorMedia, Inc.+............................................ 20,000 905,000
-----------
2,650,000
-----------
CONGLOMERATE--2.6%
AlliedSignal, Inc........................................... 20,000 882,500
General Electric Co......................................... 20,000 1,275,000
-----------
2,157,500
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
CONSUMER SERVICES--1.2%
Service Corp. International................................. 25,000 $ 978,125
-----------
DEPARTMENT STORES--1.0%
Woolworth Corp. ............................................ 50,000 787,500
-----------
ELECTRICAL EQUIPMENT--0.6%
AVX Corp. .................................................. 15,000 502,500
-----------
ELECTRONICS--2.2%
Philips Electronics NV...................................... 20,000 975,000
Texas Instruments, Inc...................................... 10,000 798,750
-----------
1,773,750
-----------
ENERGY SERVICES--4.0%
Baker Hughes, Inc. ......................................... 20,000 407,500
BJ Services Co.+............................................ 30,000 757,500
Halliburton Co. ............................................ 20,000 835,000
Schlumberger Ltd. ADR(1).................................... 10,000 652,500
Sonat Offshore Drilling, Inc. .............................. 20,000 652,500
-----------
3,305,000
-----------
ENERGY SOURCES--3.7%
Anadarko Petroleum Corp. ................................... 20,000 947,500
Burlington Resources, Inc. ................................. 25,000 968,750
Kerr-McGee Corp. ........................................... 20,000 1,110,000
-----------
3,026,250
-----------
FINANCIAL SERVICES--1.0%
Dean Witter, Discover & Co. ................................ 15,000 843,750
-----------
FOOD, BEVERAGE & TOBACCO--3.0%
Heinz (H.J.) Co. ........................................... 40,000 1,830,000
Mondavi Robert Corp. ....................................... 25,000 637,500
-----------
2,467,500
-----------
FOREST PRODUCTS--1.2%
Crown Cork & Seal, Inc...................................... 25,000 968,750
-----------
HEALTH SERVICES--11.1%
Caremark International, Inc. ............................... 25,000 537,500
Columbia/HCA Healthcare Corp. .............................. 20,000 972,500
Health Management Associates+............................... 30,000 963,750
Healthsource, Inc.+......................................... 18,200 875,875
Humana, Inc.+............................................... 45,000 905,625
McKesson Corp............................................... 15,000 675,000
Pacificare Health Systems, Inc.+............................ 15,000 1,020,000
U.S. HealthCare, Inc. ...................................... 20,000 707,500
United Healthcare Corp. .................................... 35,000 1,710,625
Vencor, Inc+................................................ 23,375 748,000
-----------
9,116,375
-----------
</TABLE>
14
<PAGE>
SUNAMERICA BLUE CHIP GROWTH FUND
PORTFOLIO OF INVESTMENTS -- September 30, 1995 -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
INSURANCE--3.8%
Aetna Life & Casualty Co. .................................. 35,000 $ 2,568,125
Travelers Group, Inc. ...................................... 10,000 531,250
-----------
3,099,375
-----------
MACHINERY--0.9%
Millipore Corp. ............................................ 20,000 750,000
-----------
MEDICAL PRODUCTS--7.9%
Becton Dickinson & Co. ..................................... 10,000 628,750
Boston Scientific Corp.+.................................... 25,000 1,065,625
Medtronic, Inc.............................................. 60,000 3,225,000
Scherer (R.P.) Corp. ADR(1)+................................ 20,000 867,500
Sola International, Inc.+................................... 30,000 663,750
-----------
6,450,625
-----------
PHARMACEUTICALS--11.1%
Abbott Laboratories......................................... 15,000 639,375
Agouron Pharmaceuticals, Inc. .............................. 13,000 373,750
ALZA Corp.+................................................. 20,000 460,000
Amgen, Inc.+................................................ 20,000 997,500
Biogen, Inc.+............................................... 5,000 300,000
Chiron Corp.+............................................... 10,000 905,000
Gilead Sciences, Inc.+...................................... 25,000 550,000
IVAX Corp. ................................................. 20,000 602,500
Merck & Co., Inc. .......................................... 20,000 1,120,000
Schering-Plough Corp. ...................................... 20,000 1,030,000
Teva Pharmaceutical Industries Ltd. ADR(1).................. 20,000 722,500
Warner-Lambert Co. ......................................... 15,000 1,428,750
-----------
9,129,375
-----------
POLLUTION CONTROL--0.4%
Browning-Ferris Industries, Inc. ........................... 10,000 303,750
-----------
SPECIALTY RETAIL--0.7%
Barnes & Noble, Inc.+....................................... 14,600 558,450
-----------
TELECOMMUNICATIONS--4.6%
AT&T Corp. ................................................. 30,000 1,972,500
MobileMedia Corp.+.......................................... 13,000 351,000
PanAmSat Corp............................................... 50,000 762,500
Worldcom, Inc.+............................................. 20,000 642,500
-----------
3,728,500
-----------
TRANSPORTATION--0.8%
Union Pacific Corp.......................................... 10,000 662,500
-----------
TOTAL COMMON STOCK
(cost $63,392,694).......................................... 71,589,575
-----------
</TABLE>
<TABLE>
<CAPTION>
RIGHTS
PRINCIPAL AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
<S> <C> <C>
RIGHTS--0.0%+
COMMUNICATION EQUIPMENT--0.0%
Ericsson (L.M.) Telephone Co. ADR(1)
(cost $0) ....................................... 60,000 $ 0
-----------
TOTAL INVESTMENT SECURITIES--87.4%
(cost $63,392,694)............................... 71,589,575
-----------
REPURCHASE AGREEMENT--5.7%
Joint Repurchase Agreement
Account (Note 3)
(cost $4,715,000)................................ $4,715 4,715,000
-----------
TOTAL INVESTMENTS--
(cost $68,107,694)............................... 93.1% 76,304,575
Other assets less liabilities..................... 6.9 5,635,221
-----
-----------
NET ASSETS-- 100.0% $81,939,796
===== ===========
</TABLE>
- --------
+ Non-income producing securities
(1) ADR ("American Depositary Receipts")
See Notes to Financial Statements
15
<PAGE>
SUNAMERICA MID-CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS -- September 30, 1995
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- ------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK--72.3%
APPAREL & TEXTILES--8.5%
Authentic Fitness Corp. .................................. 10,000 $ 225,000
Jones Apparel Group, Inc.+................................ 15,000 534,375
Kenneth Cole Productions, Inc. ........................... 5,500 193,188
Liz Claiborne, Inc. ...................................... 25,000 631,250
Nautica Enterprises, Inc.+................................ 15,000 513,750
Oakley, Inc.+............................................. 5,000 148,125
Quiksilver, Inc.+......................................... 12,500 339,062
Tommy Hilfiger Corp.+..................................... 22,000 715,000
Warnaco Group, Inc. ...................................... 30,000 720,000
-----------
4,019,750
-----------
BANKS--5.7%
First Tennessee National Corp. ........................... 10,000 555,000
Long Island Bancorp, Inc. ................................ 30,000 735,000
Mercantile Bancorp, Inc. ................................. 10,000 447,500
Midlantic Corp. .......................................... 6,000 325,500
RCSB Financial, Inc. ..................................... 10,000 241,250
Signet Banking Corp. ..................................... 15,000 393,750
-----------
2,698,000
-----------
BROADCASTING & MEDIA--2.0%
Scholastic Corp.+......................................... 15,000 941,250
-----------
CHEMICALS--2.5%
Arcadian Corp. ........................................... 20,000 407,500
Bush Boake Allen, Inc.+................................... 10,200 288,150
Cabot Corp. .............................................. 9,000 478,125
-----------
1,173,775
-----------
COMMUNICATION EQUIPMENT--3.4%
Adtran, Inc.+............................................. 10,000 347,500
Ericsson (L.M.) Telephone Co. Class B ADR(1).............. 15,000 367,500
QUALCOMM, Inc.+........................................... 15,000 688,125
Tellabs, Inc.+............................................ 5,000 210,625
-----------
1,613,750
-----------
COMPUTERS & BUSINESS EQUIPMENT--6.5%
3Com Corp.+............................................... 15,000 682,500
Bay Networks, Inc.+....................................... 5,000 266,875
BT Office Products International, Inc.+................... 55,000 721,875
Cisco Systems, Inc.+...................................... 5,000 345,000
Shiva Corp.+.............................................. 10,000 612,500
United States Robotics Corp. ............................. 5,000 426,250
-----------
3,055,000
-----------
DEPARTMENT STORES--1.3%
Woolworth Corp. .......................................... 40,000 630,000
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
ELECTRICAL EQUIPMENT--3.9%
Alpha Industries, Inc. ..................................... 55,000 $ 983,125
AVX Corp. .................................................. 5,000 167,500
LSI Logic Corp.+............................................ 12,000 693,000
-----------
1,843,625
-----------
ELECTRONICS--3.1%
Cirrus Logic, Inc.+......................................... 5,000 286,250
Micron Technology, Inc. .................................... 5,000 397,500
TriQuint Semiconductor, Inc.+............................... 11,000 251,625
Ultratech Stepper, Inc.+.................................... 12,500 528,125
-----------
1,463,500
-----------
ENERGY SERVICES--2.6%
Global Marine, Inc.+........................................ 80,000 570,000
Sonat Offshore Drilling, Inc. .............................. 20,000 652,500
-----------
1,222,500
-----------
ENTERTAINMENT PRODUCTS--0.8%
Acclaim Entertainment, Inc.+................................ 15,000 386,250
-----------
FINANCIAL SERVICES--4.6%
Capital One Financial Corp. ................................ 25,000 734,375
Green Tree Financial Corp. ................................. 7,000 427,000
Lehman Brothers Holdings, Inc. ............................. 15,000 346,875
United Companies Financial Corp. ........................... 10,000 682,500
-----------
2,190,750
-----------
HEALTH SERVICES--1.4%
Health Management Associates+............................... 10,000 321,250
Pacificare Health Systems, Inc.+............................ 5,000 340,000
-----------
661,250
-----------
LEISURE & TOURISM--0.9%
Showboat, Inc. ............................................. 20,000 432,500
-----------
MACHINERY--2.0%
Millipore Corp. ............................................ 20,000 750,000
Parker Hannifin Corp. ...................................... 5,500 209,000
-----------
959,000
-----------
MEDICAL PRODUCTS--4.8%
ADAC Laboratories........................................... 40,000 480,000
Guidant Corp. .............................................. 23,000 672,750
</TABLE>
16
<PAGE>
SUNAMERICA MID-CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS -- September 30, 1995 -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
MEDICAL PRODUCTS (CONTINUED)
Perkin Elmer Corp. ......................................... 17,000 $ 605,625
St. Jude Medical, Inc. ..................................... 8,000 506,000
-----------
2,264,375
-----------
PHARMACEUTICALS--5.0%
IVAX Corp. ................................................. 10,000 301,250
Sepracor, Inc.+............................................. 10,000 216,250
Teva Pharmaceutical Industries Ltd. ADR(1).................. 20,000 722,500
Upjohn Co. ................................................. 10,000 446,250
Watson Pharmaceuticals, Inc.+............................... 16,000 656,000
-----------
2,342,250
-----------
POLLUTION CONTROL--1.3%
United Waste Systems, Inc.+................................. 15,000 626,250
-----------
RESTAURANTS--0.5%
Apple South, Inc. .......................................... 10,000 227,500
-----------
SOFTWARE--3.9%
BMC Software, Inc.+......................................... 10,000 460,000
Electronic Arts+............................................ 10,000 367,500
Innovus Corp.+.............................................. 14,000 120,750
Netscape Communications Corp.+.............................. 5,000 312,500
Pc Docs Group International, Inc.+.......................... 40,000 597,500
-----------
1,858,250
-----------
SPECIALTY RETAIL--1.1%
Sunglass Hut International, Inc.+........................... 10,000 500,000
-----------
TELECOMMUNICATIONS--6.5%
ADC Telecommunications, Inc.+............................... 10,000 455,000
Allen Group, Inc. .......................................... 15,000 543,750
Andrew Corp.+............................................... 7,000 427,875
Glenayre Technologies, Inc.+................................ 7,000 504,000
MobileMedia Corp.+.......................................... 20,000 540,000
Octel Communications Corp.+................................. 10,500 366,188
PictureTel Corp.+........................................... 5,000 226,250
-----------
3,063,063
-----------
TOTAL COMMON STOCK
(cost $27,903,815).......................................... 34,172,588
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES/RIGHTS
PRINCIPAL AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
<S> <C> <C>
OPTIONS--0.5%+
STOCK INDEX PUT OPTIONS--0.5%
Nasdaq 100 Index, Dec./530(2)
(cost $606,629).................................. 35,000 $ 258,125
-----------
RIGHTS--0.0%+
COMMUNICATION EQUIPMENT--0.0%
Ericsson (L.M.) Telephone Co. ADR(1)
(cost $0)....................................... 40,000 0
-----------
TOTAL INVESTMENT SECURITIES--72.8%
(cost $28,510,444)............................... 34,430,713
-----------
REPURCHASE AGREEMENT--6.5%
Joint Repurchase Agreement
Account (Note 3)
(cost $3,059,000)................................ $ 3,059 3,059,000
-----------
TOTAL INVESTMENTS--
(cost $31,569,444)............................... 79.3% 37,489,713
Other assets less liabilities..................... 20.7 9,767,924
-------
-----------
NET ASSETS-- 100.0% $47,257,637
===== ===========
</TABLE>
- --------
+ Non-income producing security
(1) ADR ("American Depositary Receipt")
(2) Fair valued security, see Note 2
See Notes to Financial Statements
17
<PAGE>
SUNAMERICA SMALL COMPANY GROWTH FUND
PORTFOLIO OF INVESTMENTS -- September 30, 1995
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK--74.2%
APPAREL & TEXTILES--4.8%
Authentic Fitness Corp. .................................. 60,000 $ 1,350,000
Donnkenny, Inc.+.......................................... 17,000 478,125
Jones Apparel Group, Inc.+................................ 20,000 712,500
Kenneth Cole Productions, Inc. ........................... 10,000 351,250
Nautica Enterprises, Inc.+................................ 37,500 1,284,375
Oakley, Inc.+............................................. 30,000 888,750
Quiksilver, Inc.+......................................... 57,500 1,559,688
Warnaco Group, Inc. ...................................... 40,000 960,000
------------
7,584,688
------------
BANKS--3.7%
Bay View Capital Corp. ................................... 25,000 675,000
First American Corp. (Tennessee).......................... 15,000 646,875
Long Island Bancorp, Inc. ................................ 30,000 735,000
Peoples Bank (Bridgeport, Connecticut).................... 50,000 1,075,000
Provident Bankshares Corp. ............................... 20,000 600,000
RCSB Financial, Inc. ..................................... 50,000 1,206,250
Summit Bancorp............................................ 35,000 975,626
------------
5,913,751
------------
BROADCASTING & MEDIA--5.6%
American Radio Systems Corp.+............................. 30,000 742,500
Edmark Corp.+............................................. 25,000 1,203,125
Emmis Broadcasting Corp.+................................. 20,000 627,500
Evergreen Media Corp.+.................................... 25,000 712,500
National Media Corp.+..................................... 100,700 1,372,037
Regal Cinemas, Inc.+...................................... 55,000 2,261,875
Scholastic Corp.+......................................... 15,000 941,250
Sinclair Broadcast Group, Inc.+........................... 32,500 934,375
------------
8,795,162
------------
BUSINESS SERVICES--0.4%
RTW, Inc.+................................................ 22,000 610,500
------------
CHEMICALS--0.4%
Bush Boake Allen, Inc.+................................... 20,200 570,650
------------
COMMUNICATION EQUIPMENT--2.9%
Adtran, Inc.+............................................. 10,000 347,500
DSC Communications Corp.+................................. 10,000 592,500
DSP Communications, Inc.+................................. 20,000 660,000
NETCOM On-Line Communications Services+................... 22,000 968,000
QUALCOMM, Inc.+........................................... 32,500 1,490,938
Tellabs, Inc.+............................................ 10,000 421,250
------------
4,480,188
------------
COMPUTERS & BUSINESS EQUIPMENT--5.0%
Bay Networks, Inc.+....................................... 15,000 800,625
Cisco Systems, Inc.+...................................... 12,000 828,000
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
COMPUTERS & BUSINESS EQUIPMENT (CONTINUED)
Comverse Technology, Inc.+................................ 33,000 $ 717,750
Daisytek International Corp.+............................. 21,000 690,375
Integrated Measurement Systems, Inc.+..................... 25,000 331,250
Madge NV+................................................. 40,000 1,280,000
Shiva Corp.+.............................................. 25,000 1,531,250
StorMedia, Inc.+.......................................... 19,000 859,750
Structural Dynamics Research Corp.+....................... 50,000 928,125
------------
7,967,125
------------
ELECTRICAL EQUIPMENT--3.4%
Alpha Industries, Inc. ................................... 125,000 2,234,375
ANADIGICS, Inc.+.......................................... 66,000 1,831,500
C-Cube Microsystems, Inc.+................................ 20,000 915,000
California Amplifier, Inc.+............................... 2,500 52,188
ITI Technologies, Inc.+................................... 15,000 406,875
------------
5,439,938
------------
ELECTRONICS--7.0%
Cirrus Logic, Inc.+....................................... 15,000 858,750
Eltron International, Inc.+............................... 25,000 706,250
Kulicke & Soffa Industries, Inc. ......................... 15,000 547,500
OnTrak Systems, Inc.+..................................... 16,500 455,812
Paradigm Technology, Inc.+................................ 21,000 645,750
Sierra Semi-Conductor Corp.+.............................. 30,000 1,473,750
TelCom Semiconductor, Inc.+............................... 65,000 747,500
Tencor Instruments+....................................... 20,000 885,000
TriQuint Semiconductor, Inc.+............................. 44,000 1,006,500
Ultratech Stepper, Inc.+.................................. 15,000 633,750
Uniphase Corp.+........................................... 25,000 881,250
Veeco Instruments, Inc.+.................................. 55,000 1,443,750
Xilinx, Inc.+............................................. 15,000 721,875
------------
11,007,437
------------
ENERGY SERVICES--2.6%
Arethusa (Offshore) Ltd. ................................. 50,000 1,031,250
Reading & Bates Corp. .................................... 100,000 1,200,000
Sonat Offshore Drilling, Inc. ............................ 35,000 1,141,873
Varco International, Inc.+................................ 70,000 708,750
------------
4,081,873
------------
ENERGY SOURCES--0.4%
Pride Petroleum Services, Inc.+........................... 60,000 600,000
------------
ENTERTAINMENT PRODUCTS--0.4%
Challenger International Ltd.+............................ 100,000 637,500
------------
FINANCIAL SERVICES--0.8%
Security Capital Corp.+................................... 10,000 532,500
WFS Financial, Inc.+...................................... 30,000 682,500
------------
1,215,000
------------
</TABLE>
18
<PAGE>
SUNAMERICA SMALL COMPANY GROWTH FUND
PORTFOLIO OF INVESTMENTS -- September 30, 1995 -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
HEALTH SERVICES--1.6%
Occusystems, Inc.+........................................ 37,500 $ 778,125
Veterinary Centers of America, Inc.+...................... 100,000 1,700,000
------------
2,478,125
------------
LEISURE & TOURISM--1.8%
Showboat, Inc. ........................................... 60,000 1,297,500
Studio Plus America, Inc.+................................ 70,000 1,610,000
------------
2,907,500
------------
MACHINERY--0.4%
AG Associates, Inc.+...................................... 27,000 688,500
------------
MEDICAL PRODUCTS--2.6%
ADAC Laboratories......................................... 90,000 1,080,000
American Oncology Resources, Inc.+........................ 14,000 602,000
Metra Biosystems, Inc.+................................... 31,000 604,500
Perkin Elmer Corp. ....................................... 20,000 712,500
VISX, Inc.+............................................... 50,000 1,135,157
------------
4,134,157
------------
PHARMACEUTICALS--5.8%
Agouron Pharmaceuticals, Inc. ............................ 22,000 632,500
Depotech Corp.+........................................... 40,900 572,600
Gilead Sciences, Inc.+.................................... 25,000 550,000
Guilford Pharmaceuticals, Inc.+........................... 100,000 1,200,000
Immulogic Pharmaceutical Corp.+........................... 75,000 918,750
Ligand Pharmaceuticals, Inc.+............................. 100,000 987,500
ResMed, Inc.+............................................. 50,000 887,500
Sepracor, Inc.+........................................... 40,000 865,000
Teva Pharmaceutical Industries Ltd. ADR(1)................ 30,000 1,083,750
Watson Pharmaceuticals, Inc.+............................. 34,000 1,394,000
------------
9,091,600
------------
POLLUTION CONTROL--0.7%
United Waste Systems, Inc.+............................... 27,500 1,148,125
------------
RESTAURANTS--0.7%
Apple South, Inc. ........................................ 25,000 568,750
Cheesecake Factory, Inc.+................................. 20,000 535,000
------------
1,103,750
------------
SOFTWARE--12.8%
Activision, Inc.+......................................... 75,000 1,190,625
Discreet Logic, Inc.+..................................... 11,500 632,500
Epic Design Technology, Inc.+............................. 20,000 970,000
Harbinger Corp.+.......................................... 52,000 715,000
HNC Software, Inc.+....................................... 40,000 1,050,000
HPR, Inc.+................................................ 20,500 476,625
IMNET Systems, Inc.+...................................... 35,000 901,250
Innovus Corp.+............................................ 92,700 799,537
</TABLE>
<TABLE>
<CAPTION>
SHARES/ VALUE
SECURITY DESCRIPTION OPTIONS (NOTE 2)
<S> <C> <C>
SOFTWARE (CONTINUED)
Innovus Corp.+(2)(3)...................................... 54,000 $ 189,000
Integrated Silicon Systems, Inc.+......................... 30,000 900,000
Legato Systems, Inc.+..................................... 15,000 397,500
Maxis, Inc.+.............................................. 32,500 1,430,000
Minnesota Educational Computing Corp.+.................... 30,000 810,000
Netscape Communications Corp.+............................ 10,000 625,000
On Technology Corp.+...................................... 25,000 431,250
Pc Docs Group International, Inc.+........................ 190,000 2,838,125
Premenos Technology Corp.+................................ 15,000 487,500
Project Software & Development, Inc.+..................... 25,000 650,000
Pure Software, Inc.+...................................... 45,000 1,608,750
Sanctuary Woods Multimedia+............................... 100,000 700,000
Simware, Inc.+............................................ 27,500 275,000
Spyglass, Inc.+........................................... 13,100 599,325
UUNET Technologies, Inc.+................................. 15,000 693,750
Videoserver, Inc.+........................................ 23,500 828,375
-----------
20,199,112
-----------
SPECIALTY RETAIL--2.7%
Garden Ridge Corp.+....................................... 25,000 731,250
Just For Feet, Inc.+...................................... 38,750 1,191,563
Moovies, Inc.+............................................ 40,000 785,000
Neostar Retail Group, Inc.+............................... 21,000 359,625
Sunglass Hut International, Inc.+......................... 25,000 1,250,000
-----------
4,317,438
-----------
TELECOMMUNICATIONS--7.7%
Aspect Telecommunications Corp.+.......................... 30,000 810,000
Inter-Tel, Inc.+.......................................... 45,000 793,125
Octel Communications Corp.+............................... 24,500 854,437
P-COM, Inc.+.............................................. 22,500 1,006,875
PictureTel Corp.+......................................... 5,000 226,250
Premisys Communications, Inc.+............................ 12,500 1,009,375
TCSI Corp.+............................................... 59,500 892,500
Teltrend, Inc.+........................................... 45,000 1,485,000
Transaction Network Services, Inc.+....................... 52,000 1,397,500
United States Order, Inc.+................................ 60,000 1,110,000
Vtel Corp.+............................................... 40,000 995,000
Winstar Communications, Inc.+............................. 80,000 1,600,000
-----------
12,180,062
-----------
TOTAL COMMON STOCK
(cost $91,731,329)........................................ 117,152,181
-----------
OPTIONS--0.7%+
STOCK INDEX PUT OPTIONS--0.7%
Nasdaq 100 Index Dec./530(3)
(cost $2,507,268)......................................... 145,000 1,069,375
-----------
TOTAL INVESTMENT SECURITIES--74.9%
(cost $94,238,597)........................................ 118,221,556
-----------
</TABLE>
19
<PAGE>
SUNAMERICA SMALL COMPANY GROWTH FUND
PORTFOLIO OF INVESTMENTS -- September 30, 1995 -- (continued)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT--12.6%
Joint Repurchase Agreement Account (Note 3)
(cost $19,896,000).............................. $19,896 $ 19,896,000
------------
TOTAL INVESTMENTS--
(cost $114,134,597)............................. 87.5% 138,117,556
Other assets less liabilities.................... 12.5 19,705,548
-----
------------
NET ASSETS-- 100.0% $157,823,104
===== ============
</TABLE>
- --------
+ Non-income producing security
(1) ADR ("American Depositary Receipt")
(2) At September 30, 1995 the Fund held a restricted security amounting to 0.1%
of net assets. The Fund will not bear any costs, including those involved
in registration under the Securities Act of 1933, in connection with the
disposition of the security.
<TABLE>
<CAPTION>
DATE OF UNIT VALUATION AS OF
DESCRIPTION ACQUISITION COST SEPTEMBER 30, 1995
----------- ----------- ----- ------------------
<S> <C> <C> <C>
Innovus Corp. 3/21/95 $3.50 $3.50
</TABLE>
(3) Fair valued security, see Note 2.
See Notes to Financial Statements
20
<PAGE>
SUNAMERICA GLOBAL BALANCED FUND
PORTFOLIO OF INVESTMENTS -- September 30, 1995
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK--69.1%
DOMESTIC EQUITY--15.9%
AEROSPACE & MILITARY TECHNOLOGY--0.6%
Boeing Co................................................... 2,000 $ 136,500
-----------
APPAREL & TEXTILES--0.7%
NIKE, Inc................................................... 1,000 111,125
Oakley, Inc.+............................................... 400 11,850
Warnaco Group, Inc. ........................................ 2,000 48,000
-----------
170,975
-----------
AUTOMOTIVE--0.2%
General Motors Corp......................................... 1,000 46,875
-----------
BANKS--1.0%
BankAmerica Corp............................................ 2,000 119,750
Citicorp.................................................... 1,750 123,812
-----------
243,562
-----------
BROADCASTING & MEDIA--0.3%
Young Broadcasting, Inc.+................................... 2,000 62,500
-----------
CHEMICALS--0.5%
Union Carbide Corp.......................................... 3,000 119,250
-----------
COMMUNICATION EQUIPMENT--0.3%
Motorola, Inc............................................... 850 64,919
-----------
COMPUTERS & BUSINESS EQUIPMENT--0.9%
IMNET Systems, Inc.+........................................ 2,200 56,650
International Business Machines Corp........................ 1,600 151,000
-----------
207,650
-----------
CONGLOMERATE--0.6%
AlliedSignal, Inc........................................... 2,000 88,250
General Electric Co......................................... 800 51,000
-----------
139,250
-----------
ELECTRONICS--0.1%
Integrated Measurement Systems, Inc.+....................... 2,000 26,500
-----------
ENERGY SOURCES--0.9%
Amoco Corp.................................................. 700 44,888
Baker Hughes, Inc........................................... 2,000 40,750
Halliburton Co.............................................. 1,200 50,100
Texaco, Inc................................................. 1,000 64,625
-----------
200,363
-----------
FINANCIAL SERVICES--0.5%
Dean Witter, Discover & Co.................................. 2,000 112,500
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
FOOD, BEVERAGE & TOBACCO--0.5%
Heinz (H.J.) Co............................................. 2,500 $ 114,375
-----------
HEALTH SERVICES--1.0%
Becton Dickinson & Co....................................... 1,000 62,875
Humana, Inc.+............................................... 1,000 20,125
St. Jude Medical, Inc....................................... 1,000 63,250
United Healthcare Corp...................................... 1,800 87,975
-----------
234,225
-----------
HOUSEHOLD PRODUCTS--1.3%
Eastman Kodak Co............................................ 2,850 168,862
Johnson & Johnson Co........................................ 2,000 148,250
-----------
317,112
-----------
INSURANCE--0.3%
Travelers Group, Inc........................................ 1,200 63,750
-----------
MEDICAL PRODUCTS--1.0%
Chiron Corp.+............................................... 1,000 90,500
Medtronic, Inc.............................................. 2,000 107,500
Sola International, Inc.+................................... 2,000 44,250
-----------
242,250
-----------
METALS & MINING--0.4%
Carbide/Graphite Group, Inc.+............................... 500 7,063
Phelps Dodge Corp........................................... 650 40,706
Reynolds Metals Co.......................................... 1,000 57,750
-----------
105,519
-----------
PHARMACEUTICALS--2.9%
Abbott Laboratories......................................... 2,000 85,250
Lilly (Eli) & Co............................................ 1,400 125,825
Merck & Co., Inc............................................ 1,000 56,000
Pfizer, Inc................................................. 1,200 64,050
Schering-Plough Corp........................................ 3,200 164,800
Warner-Lambert Co........................................... 2,000 190,500
-----------
686,425
-----------
POLLUTION CONTROL--0.3%
Browning-Ferris Industries, Inc............................. 2,000 60,750
-----------
SOFTWARE--0.3%
ArcSys, Inc.+............................................... 1,000 41,250
Netscape Communications Corp.+.............................. 500 31,250
-----------
72,500
-----------
</TABLE>
21
<PAGE>
SUNAMERICA GLOBAL BALANCED FUND
PORTFOLIO OF INVESTMENTS -- September 30, 1995 -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
DOMESTIC EQUITY (CONTINUED)
SPECIALTY RETAIL--0.5%
Barnes & Noble, Inc.+....................................... 2,000 $ 76,500
Toys R Us, Inc.+............................................ 1,500 40,500
-----------
117,000
-----------
TELECOMMUNICATIONS--0.8%
AT&T Corp................................................... 1,500 98,625
PamAmSat Corp. ............................................. 2,000 30,500
Worldcom, Inc............................................... 2,000 64,250
-----------
193,375
-----------
TOTAL DOMESTIC EQUITY
(COST $2,945,325)........................................... 3,738,125
-----------
FOREIGN EQUITY--53.2%
APPAREL & TEXTILES--0.1%
Marzotto & Figli (Italy).................................... 5,000 33,023
-----------
AUTOMOTIVE--2.9%
Autoliv AB (Sweden)......................................... 2,200 134,193
Bridgestone Corp. (Japan)................................... 10,000 148,402
Honda Motor Co., Ltd. (Japan)............................... 20,000 359,396
SA D'Ieteren NV (Belgium)................................... 515 42,742
-----------
684,733
-----------
BANKS--7.5%
Banco Intercontinental Espanol (Spain)...................... 350 30,493
Banco Osorno Y La Union ADR(1) (Chile)...................... 800 12,400
Bangkok Bank Public Co. Ltd. (Thailand)..................... 1,900 21,351
Bank of Montreal (Canada)................................... 1,250 27,435
Bank of Tokyo Ltd. (Japan).................................. 20,000 300,843
Bank Of Tokyo Mitsubishi (Japan)............................ 15,000 299,833
Canadian Imperial Bank Toronto (Canada)..................... 2,655 69,136
Commonwealth Bank Of Australia (Australia).................. 13,000 100,605
Credito Italiano SpA (Italy)................................ 40,000 47,454
Development Bank of Singapore (Singapore)................... 3,000 34,148
Generale de Banque Belge Pour l'Etranger SA (Belgium)....... 185 57,891
Kampa Haus AG (Denmark)..................................... 1,485 61,832
Mitsubishi Trust & Banking Corp (Japan)..................... 20,000 312,957
National Australia Bank Ltd. (Australia).................... 10,000 88,422
National Westminster Bank PLC (United Kingdom).............. 9,000 90,156
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
BANKS (CONTINUED)
Overseas Chinese Banking Corp. Ltd. (Singapore)............. 4,000 $ 45,250
Siam Commercial Bank PLC (Thailand)......................... 3,700 41,578
Societe Generale (France)................................... 450 46,055
Stadshyotek AB (Sweden)..................................... 4,500 79,260
-----------
1,767,099
-----------
CHEMICALS--1.3%
Laporte PLC (United Kingdom)................................ 5,000 64,070
P.T. Tri Polyta Indonesia ADR(1) (Indonesia)................ 2,500 53,750
Sekisui Chemical Co., Ltd. (Japan).......................... 10,000 127,202
Tessenderlo Chemie NV (Belgium)............................. 145 53,019
-----------
298,041
-----------
COMMUNICATION EQUIPMENT--1.1%
Ericsson (L.M.) Telephone Co. Class B ADR(1) (Brazil)....... 4,000 98,000
Nokia Corp. (Finland)....................................... 2,200 154,328
-----------
252,328
-----------
COMPUTERS & BUSINESS EQUIPMENT--0.6%
Getronics NV (Netherlands).................................. 2,400 118,207
Videologic Group PLC (United Kingdom)....................... 43,283 23,936
-----------
142,143
-----------
CONGLOMERATE--1.6%
BTR PLC (United Kingdom).................................... 20,000 102,702
Hanson PLC (United Kingdom)................................. 25,000 79,791
Sonae Investimento (Portugal)............................... 1,750 40,955
Strafor-Facom SA (France)................................... 600 71,886
Williams Holdings PLC (United Kingdom)...................... 15,000 77,856
-----------
373,190
-----------
CONSTRUCTION & HOUSING--3.9%
BWT AG (Austria)............................................ 200 24,782
Glynwed International (United Kingdom)...................... 15,000 84,951
Hopewell Holdings Ltd. (Hong Kong).......................... 42,000 28,519
Italian Thai Development Public Co. Ltd. (Thailand)......... 1,500 16,737
Kajima Corp. (Japan)........................................ 20,000 197,062
Keppel Corp. Ltd. (Singapore)............................... 2,000 16,020
Koninklijke Volker Stevin (Netherlands)..................... 500 33,377
Nishimatsu Construction (Japan)............................. 30,000 366,463
Pioneer International Ltd. (Australia)...................... 30,000 79,353
Siebe PLC (United Kingdom).................................. 7,000 80,076
-----------
927,340
-----------
</TABLE>
22
<PAGE>
SUNAMERICA GLOBAL BALANCED FUND
PORTFOLIO OF INVESTMENTS -- September 30, 1995 -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
FOREIGN EQUITY (CONTINUED)
CONSTRUCTION MATERIALS--3.1%
Cement Industries (Malaysia)............................. 2,000 $ 6,409
Grafton Group PLC (Ireland).............................. 10,000 72,663
Lion Land Bhd (Malaysia)................................. 122,000 146,672
Marley PLC (United Kingdom).............................. 60,000 103,334
Plettac AG (Germany)..................................... 300 79,566
Schneider SA (France).................................... 4,000 155,711
Semen Gresik (Indonesia)................................. 9,000 25,425
Siam City Cement (Thailand).............................. 1,800 30,699
Southeast Asia Cement (Philippines)...................... 400,000 50,662
Walker Greenbank PLC (United Kingdom).................... 48,000 61,432
-----------
732,573
-----------
ELECTRONICS--3.6%
Electric & Eltek International Co. Ltd. (Singapore)...... 40,000 87,600
Hoganas AG (Sweden)...................................... 6,000 178,442
LG Electronics, Inc. (India)............................. 116 1,421
NEC Corp. (Japan)........................................ 20,000 278,633
Pressac Holdings PLC (United Kingdom).................... 45,000 100,964
Samsung Electronics Co. GDS(2) (Korea)................... 1,210 78,650
Samsung Electronics GDR(3) (Korea)....................... 89 12,504
Samsung Electronics GDR(3) (Korea)....................... 6 422
Siemens AG (Germany)..................................... 160 80,761
Telebras (Brazil)........................................ 1,000,000 40,185
-----------
859,582
-----------
ENERGY SERVICES--0.2%
Lyonnaise des Eaux-Dumez (France)........................ 500 45,792
-----------
ENERGY SOURCES--0.5%
Petro Canada (Canada).................................... 12,270 60,478
Petron Corp. (Philippines)............................... 45,000 21,157
Schlumberger Ltd. ADR(1) (France)........................ 700 45,675
-----------
127,310
-----------
ENVIRONMENTAL--0.2%
Eaux (cie Generale) (France)............................. 500 48,025
-----------
FINANCIAL SERVICES--0.5%
Credit Foncier de France (France)........................ 1,500 31,617
First Philipine Holdings Corp. (Philippines)............. 1,599 3,866
Hutchison Whampoa (Hong Kong)............................ 10,000 54,193
National Finance & Securities Co., Ltd. (Thailand)....... 3,000 14,465
Philippine Savings (Philippines)......................... 8,393 19,811
-----------
123,952
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
FOOD, BEVERAGE & TOBACCO--1.9%
Bolswessanen (Koninklijke) (Netherlands).................... 7,250 $ 140,930
Nestle SA (Switzerland)..................................... 190 194,438
Whitbread PLC (United Kingdom).............................. 12,000 116,227
-----------
451,595
-----------
FOREST PRODUCTS--1.2%
Jefferson Smurfit Group (Ireland)........................... 50,000 149,313
Maderas Y Sinteticos SA ADR(1) (Chile)...................... 1,900 36,575
Waddington (John) PLC (United Kingdom)...................... 30,000 106,178
-----------
292,066
-----------
HEALTH SERVICES--0.1%
Guidant Corp. (India)....................................... 1,000 29,250
-----------
HOTELS & CASINOS--1.4%
Manchester United PLC (United Kingdom)...................... 25,000 82,162
Stanley Leisure PLC (United Kingdom)........................ 20,000 118,818
Thorn EMI PLC (United Kingdom).............................. 5,000 116,211
-----------
317,191
-----------
HOUSEHOLD PRODUCTS--5.3%
Advantest Corp. (Japan)..................................... 5,000 295,795
Bluebird Toys PLC (United Kingdom).......................... 30,000 113,762
Hunter Douglas NV (Netherlands)............................. 1,442 71,203
Kyocera Corp. (Japan)....................................... 3,000 246,530
Philips Electronics NV (Netherlands)........................ 2,600 126,758
Rohm Co. (Japan)............................................ 4,000 252,789
Salomon SA (France)......................................... 100 52,777
Sunbeam Victa Holdings Ltd. (Australia)..................... 50,000 37,787
Zodiac (France)............................................. 400 53,772
-----------
1,251,173
-----------
INSURANCE--1.5%
Irish Life (Ireland)........................................ 25,000 89,214
Legal & General Group PLC (United Kingdom).................. 10,000 93,222
RAS SpA (Italy)............................................. 8,000 85,829
Zurich Versicherun (Switzerland)............................ 275 77,076
-----------
345,341
-----------
LEISURE & TOURISM--0.4%
Airtours PLC (United Kingdom)............................... 17,000 102,338
-----------
</TABLE>
23
<PAGE>
SUNAMERICA GLOBAL BALANCED FUND
PORTFOLIO OF INVESTMENTS -- September 30, 1995 -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
FOREIGN EQUITY (CONTINUED)
MACHINERY--3.3%
Canon, Inc. ADR(1) (Japan)................................. 20,000 $ 357,377
Mitsubishi Heavy Industrial Ltd. (Japan)................... 20,000 153,450
Ricoh Co. (Japan).......................................... 27,000 270,396
-----------
781,223
-----------
MANUFACTURING--0.6%
Graystone (United Kingdom)................................. 500,000 102,702
Hanjaya Mandala Sampoerna (Indonesia)...................... 3,750 34,926
-----------
137,628
-----------
MEDICAL PRODUCTS--0.2%
Spectral Diagnostics, Inc. (Canada)........................ 2,930 56,678
-----------
METALS & MINING--1.8%
Clutha Ltd. (Australia)(5)................................. 120,000 907
Comalco Ltd. (Australia)................................... 15,000 74,252
CRA Ltd. (Australia)....................................... 5,000 78,219
Inco Ltd. (Canada)......................................... 1,000 34,317
M.I.M. Holdings Ltd. (Australia)........................... 50,000 71,796
Noranda, Inc. (Canada)..................................... 2,000 40,919
Western Mining Corp. Holdings Ltd. ADS(4) (Australia)...... 20,000 130,895
-----------
431,305
-----------
PHARMACEUTICALS--1.2%
Glaxo Holdings PLC (United Kingdom)........................ 10,000 121,346
Glaxo Holdings PLC ADR(1) (United Kingdom)................. 2,000 48,250
Smithkline Beecham PLC (United Kingdom).................... 10,000 100,964
-----------
270,560
-----------
POLLUTION CONTROL--0.2%
Laidlaw, Inc. (Canada)..................................... 6,500 57,427
-----------
REAL ESTATE COMPANIES--0.3%
Cheung Kong Holdings Ltd. (Hong Kong)...................... 8,000 43,561
Land & Houses Public Co. Ltd. (Thailand)................... 1,500 23,550
-----------
67,111
-----------
SOFTWARE--0.1%
Simware, Inc.+ (Canada).................................... 2,000 20,000
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
SPECIALTY RETAIL--1.9%
Interform Ceramics Technologies Ltd. (Hong Kong)........ 208,000 $ 23,674
Next PLC (United Kingdom)............................... 17,000 109,003
Tokyo Electron Ltd. (Japan)............................. 7,000 304,578
-----------
437,255
-----------
TELECOMMUNICATIONS--3.1%
Advanced Information Service PLC Ltd. (Thailand)........ 1,000 16,099
Cable & Wireless PLC (United Kingdom)................... 15,000 98,357
DDI Corp. (Japan)....................................... 25 206,451
Hong Kong Telecommunications Ltd. (Hong Kong)........... 25,000 45,430
Nippon Telegraph & Telecommunications Corp. (Japan)..... 25 215,284
P.T. Indonesian Satellite Corp. ADR(1) (Indonesia)...... 1,000 35,125
Philippine Long Distance Telephone Co. (Philippines).... 170 11,353
Vodafone Group PLC ADR(1) (United Kingdom).............. 2,500 102,500
-----------
730,599
-----------
TRANSPORTATION--0.6%
Nedlloyd Groep NV (Netherlands)......................... 1,300 46,153
TNT Ltd. (Australia).................................... 60,000 92,050
-----------
138,203
-----------
UTILITIES--1.0%
Electrabel NPV (Belgium)................................ 350 76,548
Electric Reunidas de Zaragoza (Spain)................... 1,000 21,679
Hong Kong Electric Holdings Ltd. (Hong Kong)............ 12,000 40,121
Veba AG (Germany)....................................... 2,200 87,307
-----------
225,655
-----------
TOTAL FOREIGN EQUITY
(cost $11,849,166)...................................... 12,557,729
-----------
TOTAL COMMON STOCK
(cost $14,794,491)...................................... 16,295,854
-----------
PREFERRED STOCK--0.6%
AUTOMOTIVE--0.1%
Fiat SpA(Italy)......................................... 15,000 34,884
-----------
ENERGY SOURCES--0.2%
Cemig Cia Energ Mg(Brazil).............................. 1,650,000 36,874
-----------
</TABLE>
24
<PAGE>
SUNAMERICA GLOBAL BALANCED FUND
PORTFOLIO OF INVESTMENTS -- September 30, 1995 -- (continued)
<TABLE>
<CAPTION>
SHARES/RIGHTS
PRINCIPAL AMOUNT
(DENOMINATED IN
LOCAL CURRENCY) VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
PREFERRED STOCK (CONTINUED)
HOUSEHOLD PRODUCTS--0.3%
Friedrich Grohe AG(Germany)...................... 300 $ 78,936
-----------
TOTAL PREFERRED STOCK
(cost $157,778).................................. 150,694
-----------
RIGHTS--0.0%+
COMMUNICATION EQUIPMENT--0.0%
Ericsson (L.M.) Telephone Co. ADR(1) (Brazil)
(cost $0)........................................ 4,000 0
-----------
WARRANTS--0.0%+
CONSTRUCTION & HOUSING--0.0%
Chevalier International Holdings
(cost $0)........................................ 111,200 5,250
-----------
FOREIGN BOND--17.6%
Federal Republic of Germany
8.38% due 5/21/01 ............................... 300 232,085
Government of Canada
7.50% due 9/01/00 ............................... 800 598,764
Government of France
8.25% due 2/27/04 ............................... 600 128,297
8.50% due 3/28/00 ............................... 1,000 216,469
8.50% due 3/15/02 ............................... 250 339,507
Government of New Zealand
10.00% due 3/15/02 .............................. 500 363,580
Government of Spain
10.00% due 2/28/05 .............................. 50,000 383,599
Government of Japan
4.10% due 12/22/03 .............................. 25,000 277,094
6.60% due 6/20/01 ............................... 40,000 499,076
Kingdom of Belgium
6.50% due 3/31/05 ............................... 7,000 226,881
Treuhandanstalt (Germany)
6.13% due 6/25/98 ............................... 100 72,120
United Kingdom Treasury
8.50% due 12/07/05 .............................. 400 648,009
9.00% due 3/03/00 ............................... 100 166,298
-----------
TOTAL FOREIGN BOND
(cost $4,212,571)................................ 4,151,779
-----------
U.S. TREASURY NOTES--6.5%
United States Treasury
Notes 6.88% due 7/31/99......................... $ 400 411,876
United States Treasury
Notes 7.88% due 11/15/04........................ 1,000 1,112,030
-----------
TOTAL U.S. TREASURY NOTES
(cost $1,414,000)................................ 1,523,906
-----------
TOTAL INVESTMENT SECURITIES--93.8%
(cost $20,578,840)............................... 22,127,483
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL AMOUNT
(DENOMINATED IN
LOCAL CURRENCY) VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
<S> <C> <C>
SHORT-TERM SECURITIES--2.4%
Cayman Island Time Deposit 3.25% due 10/02/95.... $ 434 $ 434,000
State Street Bank Time Deposit 5.50% due
10/02/95........................................ 135 135,000
-----------
TOTAL SHORT-TERM SECURITIES
(cost $569,000).................................. 569,000
-----------
REPURCHASE AGREEMENT--0.5%
Joint Repurchase Agreement Account 6.25% due
10/02/95 (Note 3) (cost $121,000)............... 121 121,000
-----------
TOTAL INVESTMENTS--
(cost $21,268,840)............................... 96.7% 22,817,483
Other assets less liabilities..................... 3.3 773,518
----- -----------
NET ASSETS-- 100.0% $23,591,001
===== ===========
</TABLE>
- -------
+Non-income producing securities
(1)ADR ("American Depositary Receipt")
(2)GDS ("Global Depositary Shares")
(3)GDR ("Global Depositary Receipt")
(4)ADS ("American Depositary Shares")
(5)Fair valued security, see Note 2.
Allocation of net assets by
currency as of September 30,
1995:
Japanese Yen 23.2%
U.S. Dollar 22.3
British
Pound 13.7
French Franc 5.2
Canadian
Dollar 4.1
Australian
Dollar 3.2
German Mark 2.6
Dutch Guilder 2.3
Belgium Franc 2.0
Spanish
Peseta 1.8
Swedish Krona 1.7
New Zealand
Dollar 1.5
Irish Punt 1.3
Swiss Franc 1.1
Hong-Kong
Dollar 1.0
Brazilian
Real 0.8
Italian Lira 0.8
Singapore
Dollar 0.8
Finnish
Markka 0.7
Thailand Baht 0.7
Indonesian
Rupiah 0.6
Malaysian
Ringgit 0.6
Philippines
Peso 0.5
Korean Won 0.4
Danish Kroner 0.3
Chilean Peso 0.2
Portuguese
Escudo 0.2
Austrian
Schilling 0.1
Indian Rupee 0.1
See Note to Financial Statements
25
<PAGE>
SUNAMERICA GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS -- September 30, 1995
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK--66.5%
AUTOMOTIVE--1.0%
Ford Motor Co............................................... 2,000 $ 62,250
-----------
BANKS--1.3%
First Union Corp. .......................................... 1,500 76,500
-----------
BROADCASTING & MEDIA--2.4%
NYNEX Cablecomms Group PLC ADR(1)+.......................... 3,000 69,000
Viacom, Inc. Class B+....................................... 1,500 74,625
-----------
143,625
-----------
CHEMICALS--1.1%
du Pont (E.I.) de Nemours & Co.............................. 1,000 68,750
-----------
COMMUNICATION EQUIPMENT--2.5%
Motorola, Inc............................................... 2,000 152,750
-----------
CONGLOMERATE--4.3%
AlliedSignal, Inc........................................... 3,000 132,375
General Electric Co......................................... 2,000 127,500
-----------
259,875
-----------
DEPARTMENT STORES--2.6%
Woolworth Corp. ............................................ 10,000 157,500
-----------
ENERGY SERVICES--2.1%
Reading & Bates Corp........................................ 5,000 60,000
Sonat Offshore Drilling, Inc................................ 2,000 65,250
-----------
125,250
-----------
ENERGY SOURCES--3.3%
Amoco Corp.................................................. 1,000 64,125
Royal Dutch Petroleum Co. ADR(1)............................ 500 61,375
Tatham Offshore, Inc.+...................................... 5,000 10,625
Texaco, Inc................................................. 1,000 64,625
-----------
200,750
-----------
FINANCIAL SERVICES--2.0%
Dean Witter, Discover & Co.................................. 1,500 84,375
Quorum Growth, Inc.+........................................ 7,000 39,068
-----------
123,443
-----------
FOOD, BEVERAGE & TOBACCO--5.9%
Heinz (H.J.) Co............................................. 4,500 205,875
Philip Morris Cos., Inc..................................... 1,000 83,500
Quaker Oats Co.............................................. 2,000 66,250
-----------
355,625
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
FOREST PRODUCTS--0.5%
Gaylord Container Corp.+..................................... 3,000 $ 28,313
----------
HEALTH SERVICES--2.2%
OrNda Healthcorp+............................................ 3,000 63,750
U.S. HealthCare, Inc......................................... 2,000 70,750
----------
134,500
----------
HOUSEHOLD PRODUCTS--2.3%
Duracell International, Inc.................................. 1,500 67,313
USA Detergents, Inc.+........................................ 3,500 72,625
----------
139,938
----------
INSURANCE--2.4%
Aetna Life & Casualty Co..................................... 2,000 146,750
----------
LEISURE & TOURISM--2.6%
Harrah's Entertainment, Inc.................................. 3,000 87,750
Promus Hotel Corp.+.......................................... 3,000 68,250
----------
156,000
----------
METALS & MINING--0.1%
Carbide/Graphite Group, Inc.+................................ 500 7,063
----------
PHARMACEUTICALS--10.3%
Abbott Laboratories.......................................... 2,000 85,250
Amgen, Inc.+................................................. 2,000 99,750
Bristol-Myers Squibb Co...................................... 1,000 72,875
Glaxo Holdings PLC ADR(1).................................... 4,000 96,500
Merck & Co., Inc. ........................................... 1,500 84,000
Warner-Lambert Co. .......................................... 2,000 190,500
----------
628,875
----------
REAL ESTATE INVESTMENT TRUSTS--2.1%
Patriot American Hospitality, Inc.+.......................... 5,000 128,125
----------
SOFTWARE--2.1%
Computron Software, Inc.+.................................... 2,500 43,125
Netscape Communications Corp.+............................... 1,000 62,500
Simware, Inc.+............................................... 2,000 20,000
----------
125,625
----------
TELECOMMUNICATIONS--4.7%
AT&T Corp.................................................... 2,000 131,500
Frontier Corp................................................ 3,000 79,875
PanAmSat Corp................................................ 3,000 45,750
Tel-Save Holdings, Inc.+..................................... 2,000 30,750
----------
287,875
----------
</TABLE>
26
<PAGE>
SUNAMERICA GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS -- September 30, 1995 -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
TELEPHONE--4.0%
Bell Atlantic Corp........................................... 1,500 $ 92,062
BellSouth Corp............................................... 1,000 73,125
GTE Corp..................................................... 2,000 78,500
----------
243,687
----------
UTILITIES--4.7%
Baltimore Gas & Electric Co.................................. 3,000 77,625
FPL Group, Inc............................................... 2,000 81,750
General Public Utilities Corp................................ 2,500 77,812
Pacific Enterprises.......................................... 2,000 50,250
----------
287,437
----------
TOTAL COMMON STOCK
(cost $3,693,134)............................................ 4,040,506
----------
PREFERRED STOCK--3.0%
BANKS--1.3%
Wells Fargo & Co. ........................................... 3,000 77,625
----------
FOREST PRODUCTS--0.8%
James River Corp............................................. 2,000 50,250
----------
RESTAURANTS--0.9%
McDonald's Corp.............................................. 2,000 52,250
----------
TOTAL PREFERRED STOCK
(cost $176,645).............................................. 180,125
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
<S> <C> <C>
BONDS & NOTES--0.9%
FOREST PRODUCTS--0.9%
Stone Container Corp.
11.88% due 12/01/98
(cost $51,625).................................. $ 50 $ 53,750
----------
TOTAL INVESTMENT SECURITIES--70.4%
(cost $3,921,404)................................ 4,274,381
----------
REPURCHASE AGREEMENT--31.0%
Joint Repurchase Agreement Account with Yamaichi
International, Inc. (Note 3).................... 940 940,000
Joint Repurchase Agreement Account with Chemical
Securities, Inc. (Note 3)....................... 941 941,000
----------
TOTAL REPURCHASE AGREEMENTS
(cost $1,881,000)................................ 1,881,000
----------
TOTAL INVESTMENTS--
(cost $5,802,404)................................ 101.4% 6,155,381
Liabilities in excess of other assets............. (1.4) (85,070)
----- ----------
NET ASSETS-- 100.0% $6,070,311
===== ==========
</TABLE>
- --------
+ Non-income producing security
(1) ADR ("American Depositary Receipt")
See Notes to Financial Statements
27
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- September 30, 1995
Note 1. Organization
SunAmerica Equity Funds is an open-end diversified management investment
company organized as a Massachusetts business trust (the "Trust" or "Equity
Funds") on June 16, 1986. It currently consists of six different investment
funds (each, a "Fund" and collectively, the "Funds"). Each Fund is a
separate series of the Trust with a distinct investment objective and/or
strategy. Each Fund is advised and/or managed by SunAmerica Asset
Management Corp. (the "Adviser" or "SAAMCo"). An investor may invest in one
or more of the following Funds: SunAmerica Balanced Assets Fund ("Balanced
Assets Fund"), SunAmerica Blue Chip Growth Fund ("Blue Chip Growth Fund"),
SunAmerica Mid-Cap Growth Fund ("Mid-Cap Growth Fund"), SunAmerica Small
Company Growth Fund ("Small Company Growth Fund"), SunAmerica Global
Balanced Fund ("Global Balanced Fund") and SunAmerica Growth and Income
Fund ("Growth and Income Fund"). The Funds are considered to be separate
entities for financial and tax reporting purposes.
Each Fund currently offers two 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 Fund
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. 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 are subject to higher distribution fee rates.
Note 2. Significant Accounting Policies
The following is a summary of the significant accounting policies followed
by the Funds 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 or, if there is no sale on such day, the last bid
price quoted on such day. If there is no sale on that day, then securities
are valued at the 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. 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
Funds may make use of a pricing service in the determination of
28
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- September 30, 1995 -- (continued)
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 Trustees. 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 Funds, along with other affiliated registered
investment companies, 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 Funds' custodian takes possession of the collateral
pledged for investments in repurchase agreements. The underlying collateral
is valued daily on a mark to market basis to ensure that the value,
including accrued interest, is at least equal to the repurchase price. In
the event of default of the obligation to repurchase, a Fund 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 Fund may be delayed or
limited.
OPTIONS: The premium paid by a Fund for the purchase of a call or a put
option is included in the Fund'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 Fund writes a call or a put option, an amount
equal to the premium received by the Fund is included in the Fund'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 Fund has written either expires on its stipulated
expiration date, or if the Fund enters into a closing purchase transaction,
the Fund 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 options is extinguished. If a call option
which the Fund has written is exercised, the Fund 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 Fund has written is exercised, the amount of the premium
originally received reduces the cost basis of the security which the Fund
purchased upon exercise of the option.
SECURITIES TRANSACTIONS, INVESTMENT INCOME, DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS: Securities transactions are recorded on the trade date.
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. The Equity Funds,
except for the Global Balanced Fund and the Growth and Income Fund, do not
amortize premiums or accrue discounts except original issue discounts and
on interest only securities for which amortization is 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 the value
of the dividend-eligible shares, as appropriate) of each class of shares at
the beginning of the day (after adjusting for the current capital shares
activity of the respective class).
29
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- September 30, 1995 -- (continued)
Dividends from net investment income are paid semiannually, except for
Balanced Assets Fund and Growth and Income Fund which pay quarterly.
Capital gain distributions, if any, are paid annually.
INVESTMENT SECURITIES LOANED: During the year ended September 30, 1995,
Balanced Assets Fund participated in securities lending with qualified
brokers. In lending portfolio securities to brokers the Funds receive cash
as collateral against the loaned securities, which must be maintained at
not less than 100% of the market value of the loaned securities during the
period of the loan. To the extent income is earned on the cash collateral
invested, it is recorded as interest income. As with other extensions of
credit, should the borrower of the securities fail financially, the Funds
may bear the risk of delay in recovery or may be subject to replacing the
loaned securities by purchasing them with the cash collateral held, which
may be less than 100% of the market value of such securities at the time of
replacement.
At September 30, 1995, Balanced Assets Fund had loaned a security having a
value of $5,446,100 and held cash collateral of $5,443,750 for this loan.
The value of the collateral was sufficient at the time the loan agreement
was entered into. As a result of an increase in the market value of the
loaned security, the Fund was furnished with additional collateral on the
following business day.
FOREIGN CURRENCY TRANSACTION: The books and records of the Fund are
maintained in U.S. dollars. Foreign currency amounts are translated into
U.S. dollars at published rates on the following basis:
(i) market value of investment securities, other assets and
liabilities--at the closing rate of exchange.
(ii) purchases and sales of investment securities, income and expenses--
at the rate of exchange prevailing on the respective dates of such
transactions.
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. Purchases and sales of portfolio securities are translated
at the rate of exchange prevailing when such securities were acquired or
sold. Income and expenses are translated at rates of exchange prevailing
when earned or incurred.
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 Fund'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.
30
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- September 30, 1995 -- (continued)
FEDERAL INCOME TAXES: It is the Funds' policy to meet the requirements of
the Internal Revenue Code of 1986, as amended, applicable to regulated
investment companies and to distribute all of their taxable net income to
their shareholders. Therefore, no federal income tax or excise tax
provisions are required.
Global Balanced Fund 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 Fund accrues such taxes when the related income is
earned.
ORGANIZATIONAL EXPENSES: Costs incurred by SAAMCo in connection with the
organization of Global Balanced Fund and Growth and Income Fund amounted to
$4,347 and $1,383, respectively. These costs are being amortized on a
straight line basis by the Funds over a period not to exceed 60 months from
the date the Funds commenced operations. Costs incurred by SAAMCo in
connection with the registration of Global Balanced (Class A, Class B) and
Growth and Income Fund (Class A, Class B) amounted to $10,808 for each
class of each Fund. These costs are being amortized on a straight line
basis by the classes over a period not to exceed 12 months from the date
each class commenced operations.
EXPENSES: Expenses common to all Funds, not directly related to individual
Funds, are allocated among the Equity Funds based upon their relative net
asset values.
STATEMENT OF POSITION 93-2: As required by Statement of Position 93-2,
Determination, Disclosure, and Financial Statement Presentation of Income,
Capital Gain, and Return of Capital Distributions by Investment Companies,
permanent book-tax differences relating to shareholder distributions have
been reclassified. Net investment income/loss, net realized gain/loss, and
net assets are not affected. The following table discloses the current year
reclassifications between accumulated undistributed net investment
income/loss and accumulated undistributed net realized gain/loss on
investments.
<TABLE>
<CAPTION>
ACCUMULATED ACCUMULATED
UNDISTRIBUTED UNDISTRIBUTED PAID
NET REALIZED NET INVESTMENT IN
GAIN/LOSS INCOME/LOSS CAPITAL
------------- -------------- -------
<S> <C> <C> <C>
Balanced Assets Fund.................... $ 0 $ 0 $ 0
Blue Chip Growth Fund................... (42,924) 42,924 0
Mid-Cap Growth Fund..................... (237,498) 237,498 0
Small Company Growth Fund............... (587,404) 587,404 0
Global Balanced Fund.................... (565,991) 565,991 0
Growth and Income Fund.................. 0 0 0
</TABLE>
Note 3. Joint Repurchase Agreement Account
As of September 30, 1995, Balanced Assets Fund, Blue Chip Growth Fund, Mid-
Cap Growth Fund, Small Company Growth Fund, Global Balanced Fund and Growth
and Income Fund had a 15.2%, 4.6%, 3.0%, 19.3%, 0.1% and 0.9% undivided
interest, respectively, which represented $15,638,000, $4,715,000,
$3,059,000, $19,896,000, $121,000 and $941,000, respectively, in principal
amount in a joint repurchase agreement with Chemical Securities, Inc. In
addition, the Growth and Income Fund
31
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS --September 30, 1995 -- (continued)
had a 0.8% undivided interest which represented $940,000 in principal
amount in a joint repurchase agreement with Yamaichi International, Inc. As
of such date, the cash repurchase agreement in the joint account and the
collateral therefore was as follows:
Chemical Securities, Inc. Repurchase Agreement, 6.25% dated 9/29/95, in the
principal amount of $102,947,000 repurchase price $103,000,618 due 10/02/95
collateralized by $50,000,000 U.S. Treasury Notes 6.875% due 10/31/96,
$50,000,000 U.S. Treasury Notes 6.125% due 5/31/97 and $1,850,000 U.S.
Treasury Notes 6.125% due 5/31/97, approximate aggregate value
$105,092,351.
Yamaichi International, Inc. Repurchase Agreement, 6.45% dated 9/29/95, in
the principal amount of $120,864,000 repurchase price $120,928,964 due
10/02/95 collateralized by $49,250,000 U.S. Treasury Notes 8.75% due
11/15/08, $22,375,000 U.S. Treasury Bills 5.365% due 8/22/96, $19,375,000
U.S. Treasury Notes 6.25% due 8/15/23, $13,090,000 U.S. Treasury Notes
8.75% due 8/15/00 and $8,500,000 U.S. Treasury Notes 9.25% due 2/15/16,
approximate aggregate value $128,362,436.
Note 4. Investment Advisory and Management Agreement, Distribution Agreement
and Service Agreement
The Trust, on behalf of each Fund, has an Investment Advisory and
Management Agreement (the "Agreement") with SAAMCo (the "Adviser"), an
indirect wholly-owned subsidiary of SunAmerica Inc. Under the Agreement,
SAAMCo provides continuous supervision of a Fund's portfolio and
administers its corporate affairs, subject to general review by the
Trustees. In connection therewith, SAAMCo furnishes the Funds with office
facilities, maintains certain of the Fund's books and records, and pays the
salaries and expenses of all personnel, including officers of the Funds who
are employees of SAAMCo and its affiliates. The investment advisory and
management fee to SAAMCo with respect to each Fund (other than the Global
Balanced Fund) is computed daily and payable monthly, at an annual rate of
.75% of a Fund's average daily net assets up to $350 million, .70% of the
next $350 million, and .65% thereafter. The Global Balanced Fund pays the
Adviser a fee, payable monthly, computed daily at the annual rate of 1.00%
on the first $350 million of the Fund's average daily net assets, .90% on
the next $350 million of net assets and .85% on net assets over $700
million. For the year ended September 30, 1995, SAAMCo earned fees of
$1,821,586, $565,835, $294,505, $819,449, $269,441 and $32,455 for Balanced
Assets Fund, Blue Chip Growth Fund, Mid-Cap Growth Fund, Small Company
Growth Fund, Global Balanced Fund and Growth and Income Fund, respectively
(of which SAAMCo agreed to waive $115,214 and $32,455 for Global Balanced
and Growth and Income Fund, respectively.) In addition to the
aforementioned, SAAMCo, on behalf of SunAmerica Global Balanced Fund, has
entered into Sub-Advisory Agreements with AIG Asset Management, Inc.
("AIGAM") and Goldman Sachs Asset Management International ("GSAM") under
which AIGAM and GSAM act as sub-advisers for the Fund.
SAAMCo pays to AIGAM a monthly fee with respect to those net assets of the
Global Balanced Fund actually managed by AIGAM computed based on average
daily net assets at the following annual rates: .50% on the first $50
million of such assets, .40% of the next $100 million of such assets, .30%
on the next $150 million of such assets, and .25% of such assets in excess
of $300 million. Also, from the investment advisory fee the Adviser pays
GSAM a monthly fee with respect to those net assets of
32
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- September 30, 1995 -- (continued)
the Global Balanced Fund actually managed by GSAM computed based on average
daily net assets, at the following annual rates: .40% on the first $50
million of such assets, .30% on the next $100 million of such assets, .25%
on the next $100 million of such assets, and .20% of such assets in excess
of $250 million. For the year ended September 30, 1995, SAAMCo paid AIGAM
and GSAM fees of $75,883 and $29,912, respectively.
SAAMCo has agreed that, in any fiscal year, it will refund or rebate its
management fees to each of the Funds to the extent that the Fund's expenses
(including the fees of SAAMCo and amortization of organizational expenses,
but excluding interest, taxes, brokerage commissions, distribution fees and
other extraordinary expenses) exceed the most restrictive expense
limitation imposed by states where the Fund's shares are sold. The most
restrictive expense limitation is presently believed to be 2 1/2% of the
first $30 million of the Fund's average daily net assets, 2% of the next
$70 million of average net assets and 1 1/2% of such net assets in excess
of $100 million. For the year ended September 30, 1995, SAAMCo refunded its
management fee in the amount of $32,455 for Growth and Income Fund.
For the year ended September 30, 1995, SAAMCo has agreed to voluntarily
waive fees and reimburse expenses of $13,179 and $10,554, for Blue Chip
Growth Fund (Class A) and Mid-Cap Growth Fund (Class B), respectively,
related to registration and transfer agent fees.
For the year ended September 30, 1995, SAAMCo has agreed to voluntarily
reimburse expenses of $64,080 and $37,971 for Growth and Income Fund (Class
A, Class B), respectively, related to both class specific and fund level
expenses.
The Trust, on behalf of each Fund, has a Distribution Agreement with
SunAmerica Capital Services, Inc. ("SACS"). Each Fund has adopted a
Distribution Plan (the "Plan") in accordance with the provisions of Rule
12b-1 under the 1940 Act. Rule 12b-1 under the Act permits an investment
company directly or indirectly to pay expenses associated with the
distribution of its shares ("distribution expenses") in accordance with a
plan adopted by the investment company's board of directors and approved by
its shareholders. Pursuant to such rule, the Trustees and the shareholders
of each class of shares of each Fund have adopted Distribution Plans
hereinafter referred to as the "Class A Plan" and the "Class B Plan." In
adopting the Class A Plan and the Class B Plan, the Trustees determined
that there was a reasonable likelihood that each such Plan would benefit
the Trust 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 Fund at an
annual rate of up to 0.10% of average daily net assets of such Fund'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 Plan, the Distributor receives payments from a
Fund at the annual rate of up to 0.75% of the average daily net assets of
such Fund's Class B shares to compensate the Distributor and certain
securities firms for providing sales and promotional activities for
distributing that 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 Fund shares, commissions, and other
expenses such as those incurred for sales literature, prospectus printing
and distribution and
33
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS --September 30, 1995 -- (continued)
compensation to wholesalers. It is possible that in any given year the
amount paid to the Distributor under the Class A Plan or Class B Plan may
exceed the Distributor's distribution costs as described above. The
Distribution Plans provide that each class of shares of each Fund 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. In this regard, some payments are used to compensate broker-
dealers with account maintenance and service fees in an amount up to 0.25%
per year of the assets maintained in a Fund by their customers. For the
year ended September 30, 1995, SACS earned fees of $1,986,988, $675,044,
$177,911, $744,340, $186,019 and $22,214 for Balanced Assets Fund, Blue
Chip Growth Fund, Mid-Cap Growth Fund, Small Company Growth Fund, Global
Balanced Fund and Growth and Income Fund, respectively (of which $16,747
was waived on Growth and Income Fund.)
For the year ended September 30, 1995, SACS has advised the Funds that it
has received sales concessions on each Fund's Class A shares, portions of
which are reallowed to affiliated broker-dealers and non-affiliated broker-
dealers as follows:
<TABLE>
<CAPTION>
SALES AFFILIATED NON-AFFILIATED
CONCESSIONS BROKER-DEALERS BROKER-DEALERS
----------- -------------- --------------
<S> <C> <C> <C>
Balanced Assets Fund............... $565,677 $411,596 $ 75,078
Blue Chip Growth Fund.............. 33,816 27,360 1,368
Mid-Cap Growth Fund................ 104,245 69,230 18,014
Small Company Growth Fund.......... 602,843 317,796 201,595
Global Balanced Fund............... 139,083 100,770 21,897
Growth and Income Fund............. 22,142 14,608 4,434
</TABLE>
SACS also receives the proceeds of contingent deferred sales charges paid
by investors in connection with certain redemptions of each Fund's Class B
shares. For the year ended September 30, 1995, SACS informed the Balanced
Assets Fund, Blue Chip Growth Fund, Mid-Cap Growth Fund, Small Company
Growth Fund, Global Balanced Fund and Growth and Income Fund that it
received approximately $367,583, $88,628, $40,076, $105,710, $47,198, and
$1,965, respectively, in contingent deferred sales charges.
The Trust 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 Funds' transfer agent in connection with the
services that it offers to the shareholders of the Funds. The Service
Agreement permits the Funds to reimburse SAFS for costs incurred in
providing such services which is approved annually by the Trustees. For the
year ended September 30, 1995, Balanced Assets Fund (Class A, Class B),
Blue Chip Growth Fund (Class A, Class B), Mid-Cap Growth Fund (Class A,
Class B), and Small Company Growth Fund (Class A, Class B), Global Balanced
Fund (Class A, Class B) and Growth and Income Fund (Class A, Class B)
incurred expenses of $137,209, $352,821, $25,108, $116,049, $61,957,
$10,794, $105,105, $107,097, $23,995, $25,833, $5,388 and $2,143,
respectively, to reimburse SAFS pursuant to the terms of the Service
Agreement. Of these amounts, $21,110, $28,440, $7,580, $6,769, $6,872,
$2,060, $16,380, $12,014, $1,903, $2,512, $619 and $391, respectively, were
payable to SAFS at September 30, 1995.
34
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- September 30, 1995 -- (continued)
Note 5. Purchases and Sales of Investment Securities
The aggregate cost of purchases and proceeds form sales and maturities of
investments (excluding U.S. Government securities and short-term
investments) during the year ended September 30, 1995 were as follows:
<TABLE>
<CAPTION>
BALANCED BLUE CHIP MID-CAP SMALL COMPANY GLOBAL GROWTH AND
ASSETS GROWTH GROWTH GROWTH BALANCED INCOME
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Aggregate purchases..... $289,525,306 $176,523,353 $133,977,805 $310,166,932 $34,724,172 $8,000,782
------------ ------------ ------------ ------------ ----------- ----------
Aggregate sales......... $304,093,080 $192,027,508 $143,477,529 $309,617,601 $34,079,727 $7,248,528
============ ============ ============ ============ =========== ==========
</TABLE>
Note 6. Portfolio Securities (Tax Basis)
The cost of securities and the aggregate gross unrealized appreciation and
depreciation of securities at September 30, 1995 were as follows:
<TABLE>
<CAPTION>
BALANCED BLUE CHIP MID-CAP SMALL COMPANY GLOBAL GROWTH AND
ASSETS GROWTH GROWTH GROWTH BALANCED INCOME
FUND FUND FUND FUND FUND FUND
------------ ----------- ----------- ------------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Cost (tax basis)........ $252,420,918 $68,330,019 $31,572,324 $114,199,842 $21,283,331 $5,802,404
============ =========== =========== ============ =========== ==========
Appreciation............ $ 27,334,681 $ 8,673,797 $ 6,469,040 $26,162,037 $ 2,161,547 $ 416,349
Depreciation............ (2,451,654) (699,241) (551,651) (2,244,323) (627,395) (63,372)
------------ ----------- ----------- ------------ ----------- ----------
Unrealized appreciation/
depreciation--net...... $ 24,883,027 $ 7,974,556 $ 5,917,389 $23,917,714 $ 1,534,152 $ 352,977
============ =========== =========== ============ =========== ==========
</TABLE>
Capital losses incurred after October 31 within the taxable year are deemed
to arise on the first business day of the Funds' next taxable year.
Accordingly, the Global Balanced Fund incurred and will defer net capital
losses of $1,443,904 to the taxable year ended September 30, 1996. To the
extent these losses are used to offset future gains, it is probable that
the gains so offset will not be distributed.
At September 30, 1995, Global Balanced Fund had net capital loss
carryforwards of $17,364 which are available to the extent provided in
regulations to offset future capital gains and which will expire in 2003.
To the extent that these carryforwards are used to offset future capital
gains, it is probable that the gains so offset will not be distributed.
35
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- September 30, 1995 -- (continued)
Note 7. Open Forward Currency Contracts
At September 30, 1995, the Global Balanced Fund 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 Fund bears
the risk of an unfavorable change in the foreign exchange rate underlying
the forward contract. Global Balanced Fund held the following forward
currency contracts at September 30, 1995:
<TABLE>
<CAPTION>
GROSS
CONTRACT IN DELIVERY UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
---------------- ------------- -------- ------------
<S> <C> <C> <C>
BEL 6,665,750 USD 234,927 10/31/95 $ 7,227
BEL 9,584,224 DEM 464,622 9/09/96 409
JPY 30,219,570 DEM 467,000 10/13/95 21,232
JPY 49,071,257 USD 564,362 10/17/95 67,440
JPY 48,360,804 USD 552,253 10/17/95 62,526
XEU 268,005 USD 356,326 10/20/95 9,047
*USD 149,488 CAD 203,608 11/14/95 1,903
*DEM 341,037 USD 247,074 10/24/95 8,108
*USD 235,523 DEM 341,037 10/24/95 3,444
*DEM 331,553 USD 240,204 10/24/95 7,882
*JPY 29,325,945 USD 330,000 10/27/95 32,520
*JPY 30,200,840 USD 340,000 10/27/95 33,645
*JPY 30,905,600 USD 320,000 10/27/95 6,496
*JPY 26,957,385 USD 278,981 10/27/95 5,528
*JPY 2,997,295 USD 31,019 10/27/95 615
*ITL 506,947,500 DEM 458,838 11/16/95 9,390
*NZD 210,401 USD 139,286 10/13/95 965
*NZD 292,409 USD 195,329 10/13/95 3,096
*NZD 474,431 USD 314,073 10/13/95 2,177
--------
283,650
--------
</TABLE>
36
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- September 30, 1995 -- (continued)
<TABLE>
<CAPTION>
GROSS
CONTRACT IN DELIVERY UNREALIZED
TO DELIVER EXCHANGE FOR DATE DEPRECIATION
---------------- ----------------- -------- ------------
<S> <C> <C> <C>
CAD 800,853 USD 585,783 11/14/95 $ (9,686)
DEM 594,535 USD 399,733 10/13/95 (16,622)
DEM 324,653 USD 220,403 10/24/95 (7,084)
DEM 2,000,000 USD 1,344,538 12/12/95 (60,203)
ESP 51,087,641 USD 408,570 11/27/95 (2,227)
FRF 642,305 USD 126,513 11/30/95 (3,818)
FRF 1,114,500 USD 224,970 11/30/95 (1,175)
GBP 424,431 USD 656,383 12/11/95 (13,183)
GBP 103,663 USD 163,477 12/11/95 (58)
JPY 2,295,584 USD 22,888 10/27/95 (398)
JPY 330,000,000 USD 3,356,899 12/12/95 (13,119)
JPY 34,349,179 USD 339,813 12/18/95 (11,314)
NZD 551,972 USD 356,353 12/12/95 (4,715)
*USD 513,821 NZD 766,840 10/13/95 (9,692)
*USD 140,758 NZD 210,401 10/13/95 (2,438)
*DEM 450,000 ITL 506,947,500 11/16/95 (3,205)
*DEM 36,322 USD 24,658 10/24/95 (793)
*USD 25,579 DEM 36,322 10/24/95 (127)
*USD 233,488 DEM 331,553 10/24/95 (1,166)
*USD 339,944 JPY 29,325,945 10/27/95 (42,464)
*USD 315,677 JPY 30,200,840 10/27/95 (9,322)
*USD 323,044 JPY 30,905,600 10/27/95 (9,540)
*USD 40,992 JPY 4,026,616 10/27/95 (146)
*JPY 4,026,616 USD 40,147 10/27/95 (699)
*USD 274,431 JPY 26,957,385 10/27/95 (978)
*USD 31,279 JPY 2,992,460 10/27/95 (924)
*USD 56 JPY 4,835 10/27/95 (7)
*USD 353,637 AUD 466,047 10/30/95 (1,912)
*AUD 466,047 USD 342,195 10/30/95 (9,530)
*CAD 203,608 USD 148,928 11/14/95 (2,463)
---------
(239,008)
---------
Net Appreciation..................................... $ 44,642
=========
</TABLE>
*Represents open forward currency contracts and offsetting open forward foreign
currency contracts that do not have additional market risk but have continued
counterparty settlement risk.
AUD--Australian DEM--Deutsche Mark GBP--Great Britain NZD--New Zealand
Dollar Pound Dollar
BEF--Belgium ESP--Spanish Peseta ITL--Italian Lira USD--United States
Franc Dollar
CAD--Canadian FRF--French Franc JPY--Japanese Yen XEU--European
Dollar Currency
37
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- September 30, 1995 -- (continued)
Note 8. Capital Share Transactions
Transactions in capital shares of each class of each series were as
follows:
<TABLE>
<CAPTION>
BALANCED ASSETS FUND
----------------------------------------------------------------------------------------------------------
CLASS A CLASS B
-------------------------------------------------- ------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 1995 SEPTEMBER 30, 1994 SEPTEMBER 30, 1995 SEPTEMBER 30, 1994
------------------------ ------------------------ -------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 4,667,503 $ 71,426,588 2,698,104 $ 40,272,932 3,071,975 $ 45,998,809 7,440,392 $110,364,992
Reinvested
dividends...... 265,763 3,756,343 102,965 1,508,917 769,696 10,686,782 332,957 4,879,992
Shares redeemed. (1,193,984) (17,782,121) (1,444,087) (21,386,612) (6,322,402) (95,258,440) (4,503,874) (66,040,730)
---------- ------------ ---------- ------------ ----------- ------------- ----------- -------------
Net increase
(decrease)..... 3,739,282 $ 57,400,810 1,356,982 $ 20,395,237 (2,480,731) $(38,572,849) 3,269,475 $ 49,204,254
========== ============ ========== ============ =========== ============= =========== =============
<CAPTION>
BLUE CHIP GROWTH FUND
----------------------------------------------------------------------------------------------------------
CLASS A CLASS B
-------------------------------------------------- ------------------------------------------------------
INCEPTION
FOR THE (OCTOBER 8, 1993)(a) FOR THE FOR THE
YEAR ENDED TO YEAR ENDED YEAR ENDED
SEPTEMBER 30, 1995 SEPTEMBER 30, 1994 SEPTEMBER 30, 1995 SEPTEMBER 30, 1994
------------------------ ------------------------ -------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 2,404,163 $37,806,801 303,594 $ 4,654,762 8,964,323 $ 134,971,138 10,324,732 $ 160,567,760
Reinvested
dividends...... 14,956 207,075 943 14,611 372,862 5,128,338 204,303 3,166,759
Shares redeemed. (181,804) (2,884,125) (96,580) (1,455,849) (11,706,255) (177,081,024) (10,751,734) (166,819,355)
---------- ------------ ---------- ------------ ----------- ------------- ----------- -------------
Net increase
(decrease)..... 2,237,315 $35,129,751 207,957 $ 3,213,524 (2,369,070) $ (36,981,548) (222,699) $ (3,084,836)
========== ============ ========== ============ =========== ============= =========== =============
<CAPTION>
MID-CAP GROWTH FUND
----------------------------------------------------------------------------------------------------------
CLASS A CLASS B
-------------------------------------------------- ------------------------------------------------------
INCEPTION
FOR THE FOR THE FOR THE (OCTOBER 4, 1993)(a)
YEAR ENDED YEAR ENDED YEAR ENDED TO
SEPTEMBER 30, 1995 SEPTEMBER 30, 1994 SEPTEMBER 30, 1995 SEPTEMBER 30, 1994
------------------------ ------------------------ -------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 247,141 $ 3,926,322 2,337,824 $ 35,777,463 4,235,563 $ 62,818,790 4,151,875 $ 60,390,157
Reinvested
dividends...... 5,781 79,602 352,721 5,115,552 1,748 24,200 41,302 598,471
Shares redeemed. (521,946) (7,755,976) (2,239,597) (33,937,663) (3,989,374) (59,135,991) (3,898,362) (56,242,056)
---------- ------------ ---------- ------------ ----------- ------------- ----------- -------------
Net increase
(decrease)..... (269,024) $ (3,750,052) 450,948 $ 6,955,352 247,937 $ 3,706,999 294,815 $ 4,746,572
========== ============ ========== ============ =========== ============= =========== =============
</TABLE>
(a) Commencement of sale of respective class of shares
38
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- September 30, 1995 -- (continued)
<TABLE>
<CAPTION>
SMALL COMPANY GROWTH FUND
---------------------------------------------------------------------------------------------------------
CLASS A CLASS B
--------------------------------------------------- ----------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, 1995 SEPTEMBER 30, 1994 SEPTEMBER 30, 1995 SEPTEMBER 30, 1994
------------------------- ------------------------ -------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------- ---------- ------------ ----------- ------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 6,544,632 $ 130,462,164 9,770,630 $171,305,427 9,886,153 $ 196,092,402 9,949,146 $170,413,433
Reinvested
dividends...... 54,753 964,756 177,646 3,055,538 62,016 1,085,149 222,219 3,817,482
Shares redeemed. (5,262,148) (102,586,803) (9,637,891) (168,923,280) (10,265,178) (202,833,358) (9,011,396) (153,722,671)
---------- ------------- ---------- ------------ ----------- ------------- ---------- ------------
Net increase
(decrease)..... 1,337,237 $ 28,840,117 310,385 $ 5,437,685 (317,009) $ (5,655,807) 1,159,969 $ 20,508,244
========== ============= ========== ============ =========== ============= ========== ============
<CAPTION>
GLOBAL BALANCED FUND
---------------------------------------------------------------------------------------------------------
CLASS A CLASS B
--------------------------------------------------- ----------------------------------------------------
INCEPTION INCEPTION
FOR THE (JUNE 15, 1994)(a) FOR THE (JUNE 16, 1994)(a)
YEAR ENDED TO YEAR ENDED TO
SEPTEMBER 30, 1995 SEPTEMBER 30, 1994 SEPTEMBER 30, 1995 SEPTEMBER 30, 1994
------------------------- ------------------------ -------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------- ---------- ------------ ----------- ------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 750,764 $ 5,173,301 1,933,627 $ 13,483,754 1,150,637 $ 7,847,490 2,132,333 $ 14,947,304
Reinvested
dividends...... 4,067 27,252 -- -- 2,161 14,461 -- --
Shares redeemed. (1,342,777) (9,319,908) (38,577) (268,643) (1,199,716) (8,126,345) (170,068) (1,177,938)
---------- ------------- ---------- ------------ ----------- ------------- ---------- ------------
Net increase.... (587,946) $ (4,119,355) 1,895,050 $ 13,215,111 (46,918) $ (264,394) 1,962,265 $ 13,769,366
========== ============= ========== ============ =========== ============= ========== ============
<CAPTION>
GROWTH AND INCOME FUND
---------------------------------------------------------------------------------------------------------
CLASS A CLASS B
--------------------------------------------------- ----------------------------------------------------
INCEPTION INCEPTION
FOR THE (JULY 1, 1994)(a) FOR THE (JULY 6, 1994)(a)
YEAR ENDED TO YEAR ENDED TO
SEPTEMBER 30, 1995 SEPTEMBER 30, 1994 SEPTEMBER 30, 1995 SEPTEMBER 30, 1994
------------------------- ------------------------ -------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------- ---------- ------------ ----------- ------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 542,589 $ 4,112,191 414,349 $ 3,037,584 301,384 $ 2,380,132 68,811 $ 510,253
Reinvested
dividends...... 25,040 190,918 3,411 25,414 7,758 61,110 154 1,146
Shares redeemed. (562,875) (4,274,466) (1,377) (10,263) (37,348) (295,806) (38,138) (285,414)
---------- ------------- ---------- ------------ ----------- ------------- ---------- ------------
Net increase.... 4,754 $ 28,643 416,383 $ 3,052,735 271,794 $ 2,145,436 30,827 $ 225,985
========== ============= ========== ============ =========== ============= ========== ============
</TABLE>
(a) Commencement of sale of respective class of shares
39
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- September 30, 1995 -- (continued)
Note 9. Commitments and Contingencies
The SunAmerica family of mutual funds may borrow up to $75,000,000 under an
uncommitted line of credit with State Street Bank and Trust Company with
interest payable at the Federal Funds rate plus 100 basis points.
Borrowings under the line of credit will commence when the respective
Fund's cash shortfall exceeds $100,000.
Note 10. Trustees Retirement Plan
The Trustees (and Directors) 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 unaffiliated
Trustees. The Retirement Plan provides generally that if an unaffiliated
Trustee who has at least 10 years of consecutive service as a Disinterested
Trustee of any of the SunAmerica mutual funds (an "Eligible Trustee")
retires after reaching age 60 but before age 70 or dies while a Trustee,
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
Trustee. As of each birthday, prior to the 70th birthday, each Eligible
Trustee will be credited with an amount equal to (i) 50% of his or her
regular fees (excluding committee fees) for services as a Disinterested
Trustee of each SunAmerica mutual fund for the calendar year in which such
birthday occurs, plus (ii) 8.5% of any amounts credited under clause (i)
during prior years. An Eligible Trustee 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 September 30, 1995, the
Funds had accrued $5,120, $1,867, $886, $2,243, $436 and $58 which is
included in accrued expenses on the Statement of Assets and Liabilities,
and for the year ended September 30, 1995 expensed $3,883, $1,381, $670,
$1,716, $436 and $56 for the Balanced Assets Fund, Blue Chip Growth Fund,
Mid-Cap Growth Fund, Small Company Growth Fund, Global Balanced Fund and
Growth and Income Fund, respectively, for the Retirement Plan which is
included in Trustees' fees and expenses on the Statement of Operations.
40
<PAGE>
SUNAMERICA EQUITY FUNDS
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of SunAmerica Equity Funds
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of SunAmerica Balanced
Assets Fund, SunAmerica Blue Chip Growth Fund, SunAmerica Mid-Cap Growth Fund,
SunAmerica Small Company Growth Fund, SunAmerica Global Balanced Fund and
SunAmerica Growth and Income Fund (constituting SunAmerica Equity Funds,
hereafter referred to as the "Fund") at September 30, 1995, and the results of
each of their operations, the changes in each of their net assets and the
financial highlights for each of the periods presented, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at September 30, 1995 by
correspondence with the custodian and brokers and the application of
alternative auditing procedures where confirmations from brokers were not
received, provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas New York, New York November 10, 1995
41
<PAGE>
SUNAMERICA EQUITY FUNDS
SHAREHOLDER TAX INFORMATION--(UNAUDITED)
Certain tax information regarding the SunAmerica Equity Funds is required to
be provided to shareholders based upon each Fund's income and distributions
for the taxable year ended September 30, 1995. The information and
distributions reported herein may differ from the information and
distributions taxable to the shareholders for the calendar year ending
December 31, 1995. The information necessary to complete your income tax
returns will be included with your Form 1099-DIV which will be sent to you
under separate cover in January 1996.
During the year ended September 30, 1995 the Funds paid the following
dividends per share:
<TABLE>
<CAPTION>
TOTAL ORDINARY NET SHORT-TERM NET LONG-TERM
DIVIDENDS INCOME CAPITAL GAINS CAPITAL GAINS
--------- -------- --------------- ---------------
<S> <C> <C> <C> <C>
Balanced Assets Class A..... $1.03 $.45 $.26 $.32
Balanced Assets Class B..... .94 .36 .26 .32
Blue Chip Growth Class A.... 1.09 -- .27 .82
Blue Chip Growth Class B.... 1.09 -- .27 .82
Mid-Cap Growth Class A...... .04 .04 -- --
Mid-Cap Growth Class B...... .02 .02 -- --
Small Company Growth Class
A.......................... .41 -- .22 .19
Small Company Growth Class
B.......................... .41 -- .20 .21
Global Balanced Class A..... .01 .01 -- --
Global Balanced Class B..... .01 .01 -- --
Growth and Income Class A... .45 .30 .15 --
Growth and Income Class B... .43 .28 .15 --
</TABLE>
For the year ended September 30, 1995, 24.5%, 19.5%, 4.1%, 34.9% and 17.2%
of the dividends paid from ordinary income by Balanced Assets Fund, Blue Chip
Growth Fund, Mid-Cap Growth Fund, Global Balanced Fund and Growth and Income
Fund, respectively, qualified for the 70% dividends received deductions for
corporations.
42
<PAGE>
SUNAMERICA EQUITY FUNDS
COMPARISONS: PORTFOLIOS VS. INDEXES
As required by the Securities and Exchange Commission, the following graphs
compare the performance of a $10,000 investment in the SunAmerica Equity Funds'
portfolios to a similar investment in an index. Please note that "inception" as
used herein reflects the date a Fund commenced operations without regard to
when a second class of shares was introduced. For comparative graphical
purposes, however, we have assumed that each class of shares' historical
performance began on the original inception date and runs up to the point that
a new class of shares commenced operations. At such time performance between
the classes differs. Each index has been chosen by the particular portfolio's
manager as an appropriate comparison and is accompanied by a brief discussion
from the portfolio manager about why the portfolio performed the way it did
relative to the index.
[GRAPH APPEARS HERE]
Balanced Balanced S & P Lehman Bros.
Measurement period Assets Assets (dividends Intermed.
(Fiscal year Covered) Class A Class B reinvested) Govt. Index
- --------------------- --------- --------- --------- ---------
Measurement PT -
09/85 $ 10,000 $ 10,000 $ 10,000
FYE 06/86 $ 13,578 $ 14,146 $ 11,379
FYE 06/87 $ 14,919 $ 17,701 $ 11,991
FYE 06/88 $ 14,697 $ 16,497 $ 12,892
FYE 06/89 $ 15,906 $ 19,887 $ 14,192
FYE 06/90 $ 17,956 $ 23,166 $ 15,289
FYE 06/91 $ 18,653 $ 24,879 $ 17,081
FYE 06/92 $ 20,052 $ 28,216 $ 19,070
FYE 06/93 $ 24,120 $ 32,061 $ 20,895
FYE 09/93 $ 24,951 $ 32,888 $ 21,457
FYE 09/94 $ 25,176 $ 24,915 $ 34,103 $ 21,135
FYE 09/95 $ 28,637 $ 29,806 $ 44,251 $ 23,379
*Fund changed its fiscal year end from June 30 as of September 24, 1993.
Class A Class B
--------------------------------------------------------------
Balanced Cumulative Cumulative
Assets SEC Average Traditional SEC Average Traditional
Fund Annual Return Return+ Annual Return Return+
- -----------------------------------------------------------------------------
1 Year Return 13.75% 20.68% 15.16% 19.96%
- -----------------------------------------------------------------------------
5 Year Return N/A N/A 13.67% 93.68%
- -----------------------------------------------------------------------------
Since Inception 7.07% 21.77% 11.78% 228.16%
- -----------------------------------------------------------------------------
+ Traditional returns do not include sales load.
The SunAmerica Balanced Assets Fund offers a conservative approach to stock
investing. The Fund seeks to conserve principal by maintaining at all times a
balanced portfolio of stocks and bonds. The composition of the portfolio will
vary as economic and market trends change. Because at least 25% of the Fund's
net assets are invested in senior fixed income securities, it may, over the
longer term underperform a pure stock portfolio but outperform a pure fixed
income portfolio. Understandably, the Fund underperformed a pure stock portfolio
as measured by the S&P 500, but has outperformed a pure fixed income portfolio
as measured by the Lehman Brothers Intermediate Government Index. When compared
to its peers, the Fund has a year-to-date rank of 51 out of 217 Balanced Funds
monitored by Lipper Analytical Services.
[GRAPH APPEARS HERE]
Blue Chip Blue Chip S & P 500
Measurement period Growth Growth (dividends
(Fiscal year Covered) Class A Class B reinvested)
- --------------------- --------- --------- ---------
Measurement PT -
09/85 $ 10,000 $ 10,000
FYE 12/85 $ 11,355 $ 11,714
FYE 12/86 $ 13,258 $ 13,896
FYE 12/87 $ 12,266 $ 14,634
FYE 12/88 $ 15,865 $ 17,064
FYE 12/89 $ 17,890 $ 22,471
FYE 12/90 $ 13,397 $ 21,773
FYE 12/91 $ 17,395 $ 28,407
FYE 12/92 $ 18,867 $ 30,571
FYE 09/93 $ 22,602 $ 32,888
FYE 09/94 $ 22,363 $ 22,193 $ 34,103
FYE 09/95 $ 25,566 $ 26,746 $ 44,251
*Fund changed its fiscal year end from December 31 to September 30 as of
September 24, 1993.
Class A Class B
--------------------------------------------------------------
Blue Chip Cumulative Cumulative
Growth SEC Average Traditional SEC Average Traditional
Fund Annual Return Return+ Annual Return Return+
- -----------------------------------------------------------------------------
1 Year Return 14.32% 21.29% 15.69% 20.51%
- -----------------------------------------------------------------------------
5 Year Return N/A N/A 14.56% 101.35%
- -----------------------------------------------------------------------------
Since Inception 6.43% 20.02% 10.33% 180.84%
- -----------------------------------------------------------------------------
+ Traditional returns do not include sales load.
The SunAmerica Blue Chip Growth Fund seeks capital appreciation by investing
primarily in equity securities of companies with large market capitalizations,
usually over $2.5 billion. During the past year, due to a general underweighting
in the technology sector to reduce the Fund's overall volatility, the Fund
lagged slightly behind the S&P 500. It is our belief that this sector remains
highly overowned and will see weakness in the future. Our strategy going forward
is to overweight the Fund in fundamentally strong, high growth companies with
consistent double-digit earnings, in a slowing economic environment.
43
<PAGE>
SUNAMERICA EQUITY FUNDS
COMPARISONS: PORTFOLIOS VS. INDEXES -- (continued)
[GRAPH APPEARS HERE]
S & P 500 Mid-Cap Mid-Cap
Measurement period (dividends Growth Growth
(Fiscal year Covered) reinvested) Class B Class A
- --------------------- --------- --------- ---------
Measurement PT - $ 10,000 $ 10,000
FYE 11/87 $ 8,301 $ 8,839
FYE 11/88 $ 10,236 $ 11,224
FYE 11/89 $ 13,393 $ 15,308
FYE 11/90 $ 12,929 $ 12,610
FYE 11/91 $ 15,558 $ 16,535
FYE 11/92 $ 18,432 $ 20,077
FYE 09/93 $ 20,073 $ 24,177 $ 24,177
FYE 09/94 $ 20,814 $ 21,624 $ 21,873
FYE 09/95 $ 27,008 $ 27,397 $ 26,679
*Fund changed its fiscal year end from November 30 to September 30 as of
September 24, 1993.
Class A Class B
--------------------------------------------------------------
Mid-Cap Cumulative Cumulative
Growth SEC Average Traditional SEC Average Traditional
Fund Annual Return Return+ Annual Return Return+
- -----------------------------------------------------------------------------
1 Year Return 22.06% 29.51% 23.41% 28.55%
- -----------------------------------------------------------------------------
5 Year Return 16.87% 131.29% N/A N/A
- -----------------------------------------------------------------------------
Since Inception 11.99% 183.07% 5.06% 14.97%
- -----------------------------------------------------------------------------
+ Traditional returns do not include sales load.
The SunAmerica Mid-Cap Growth Fund seeks capital appreciation by investing
primarily in the equity securities of medium-sized companies with market
capitalizations of $800 million to approximately $2.5 billion. The Fund
performed in line with the S&P 500 and fully participated in the strong equity
markets of 1995. We were able to outperform the market due to the select
investments in high growth, fundamentally strong industries such as technology,
health care and select specialty retailers.
Small Small
Measurement period NASDAQ Company Company
(Fiscal year Covered) Industrials Class A Class B
- --------------------- --------- --------- ---------
Measurement PT - $ 10,000 $ 10,000
FYE 11/87 $ 6,855 $ 7,313
FYE 11/88 $ 8,195 $ 11,503
FYE 11/89 $ 10,021 $ 14,886
FYE 11/90 $ 8,763 $ 10,334
FYE 11/91 $ 13,270 $ 15,714
FYE 11/92 $ 15,859 $ 19,533
FYE 09/93 $ 17,556 $ 24,549 $ 24,549
FYE 09/94 $ 17,498 $ 22,638 $ 22,624
FYE 09/95 $ 23,897 $ 32,003 $ 33,429
*Fund changed its fiscal year end from November 30 to September 30 as of
September 24, 1993.
Class A Class B
--------------------------------------------------------------
Small Company Cumulative Cumulative
Growth SEC Average Traditional SEC Average Traditional
Fund Annual Return Return+ Annual Return Return+
- -----------------------------------------------------------------------------
1 Year Return 41.37% 50.00% 43.12% 49.08%
- -----------------------------------------------------------------------------
5 Year Return 25.87% 235.16% N/A N/A
- -----------------------------------------------------------------------------
Since Inception 14.36% 239.56% 15.31% 37.39%
- -----------------------------------------------------------------------------
+ Traditional returns do not include sales load.
The SunAmerica Small Company Growth Fund seeks to realize capital appreciation
by investing in equity securities of small capitalization growth companies. Our
Fund took advantage of the strong advance of the equity markets in 1995, and
greatly outperforming the NASDAQ Industrials. The Fund's performance has been
successful mainly due to exposure to select technology, specialty retail and
health care names. On a pure group analysis, the Fund has a year-to-date rank of
52 out of 307 Small Company Growth Funds monitored by Lipper Analytical
Services.
44
<PAGE>
SUNAMERICA EQUITY FUNDS
COMPARISONS: PORTFOLIOS VS. INDEXES -- (continued)
[GRAPH APPEARS HERE]
Measurement period Global Balanced
(Fiscal year Covered) JP Morgan MCSI EAFE S & P 500 Class A Class B
- --------------------- --------- --------- --------- --------- ---------
Measurement PT - $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000
FYE 09/94 $ 10,239 $ 10,160 $ 10,232 $ 9,384 $ 9,542
FYE 09/95 $ 11,872 $ 10,780 $ 13,277 $ 10,015 $ 10,130
Class A Class B
--------------------------------------------------------------
Global Cumulative Cumulative
Balanced SEC Average Traditional SEC Average Traditional
Fund Annual Return Return+ Annual Return Return+
- -----------------------------------------------------------------------------
1 Year Return 0.59% 6.72% 1.68% 5.91%
- -----------------------------------------------------------------------------
5 Year Return N/A N/A N/A N/A
- -----------------------------------------------------------------------------
Since Inception 0.12% 6.26% 0.87% 5.30%
- -----------------------------------------------------------------------------
+ Traditional returns do not include sales load.
The SunAmerica Global Balanced Fund seeks capital appreciation while conserving
principal by maintaining at all times a balanced portfolio of domestic and
foreign, stocks and bonds. Although the domestic equity and fixed income markets
have helped offset the weakness in many of our international investments, our
positions in the Pacific Rim and developed countries of Europe have
underperformed as indicated by the MSCI EAFE World Index and JP Morgan Global
Government Bond Portfolio Index. We are still convinced that international
investments are particularly attractive at this point in the global recovery and
that they should represent a significant portion of a well diversified
portfolio.
[GRAPH APPEARS HERE]
S & P 500 Growth and Growth and
Measurement period (dividends Income Income
(Fiscal year Covered) reinvested) Class A Class B
- --------------------- --------- --------- ---------
Measurement PT - $ 10,000 $ 10,000 $ 10,000
FYE 09/94 $ 10,489 $ 9,645 $ 9,819
FYE 09/95 $ 13,610 $ 11,529 $ 11,779
Class A Class B
--------------------------------------------------------------
Growth Cumulative Cumulative
and Income SEC Average Traditional SEC Average Traditional
Fund Annual Return Return+ Annual Return Return+
- -----------------------------------------------------------------------------
1 Year Return 12.66% 19.53% 14.42% 19.19%
- -----------------------------------------------------------------------------
5 Year Return N/A N/A N/A N/A
- -----------------------------------------------------------------------------
Since Inception 12.06% 22.32% 13.32% 21.79%
- -----------------------------------------------------------------------------
+ Traditional returns do not include sales load.
The SunAmerica Growth and Income Fund invests in common stocks, which offer
potential for capital appreciation, current income or both. The Fund lagged its
S&P 500 benchmark throughout 1995 due to its high cash position and defensive
stance towards the market. We have recently made a major shift in the strategic
direction of the Fund and believe that this will enable the Fund to outperform
its benchmarks and peers going forward.
45
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
TRUSTEES INVESTMENT ADVISER
Eli Broad SunAmerica Asset Management Corp.
S. James Coppersmith The SunAmerica Center
Samuel M. Eisenstat 733 Third Avenue
Stephen J. Gutman New York, NY 10017-3204
Sebastiano Sterpa
Jay S. Wintrob SUB-ADVISERS
AIG Asset Management, Inc.
OFFICERS 70 Pine Street
Peter A. Harbeck, President New York, NY 10270
Stanton J. Feeley, Executive Vice President
Nancy Kelly, Vice President Goldman Sachs Asset Management
Audrey L. Snell, Vice President International 95 Broad Street
Robert M. Zakem, Secretary New York, NY 10004
Peter C. Sutton, Controller
Donna M. Handel, Assistant Controller DISTRIBUTOR
John T. Genoy, Assistant Controller SunAmerica Capital Services, Inc.
Hilary R. Kastleman, Assistant Secretary The SunAmerica Center
Abbe P. Stein, Assistant Secretary 733 Third Avenue
New York, NY 10017-3204
CUSTODIAN AND TRANSFER AGENT
State Street Bank & Trust Company SHAREHOLDER SERVICING AGENT
P.O. Box 419572 SunAmerica Fund Services, Inc.
Kansas City, MO 64141-6572 The SunAmerica Center
733 Third Avenue
New York, NY 10017-3204
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
BULK RATE
SUNAMERICA EQUITY FUNDS U.S. POSTAGE
THE SUNAMERICA CENTER PAID
733 THIRD AVENUE Kansas City,
NEW YORK, NY 10017-3204 MO
1-800-858-8850 PERMIT NO.
3657
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.
SPONSORED BY:
LOGO
EFANN
