<PAGE>
March 31, 1995
SunAmerica
Equity Funds
[ART]
Semiannual
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
Dear Shareholder:
The economy again surprised most experts with continued strong growth in the
third and fourth quarters of 1994. Fourth quarter Gross Domestic Product (GDP)
growth was at 5.1%, leading the consensus forecast to suggest further strong
momentum during the first half of 1995 and no meaningful slow down until the
second half of the year. The consensus forecast currently is that the economy
is slowing and economic indicators suggest that we are gliding into some kind
of soft landing. That would imply GDP growth of 2% in the second half of the
year. Several indicators suggesting a slowing economy include: consumer
confidence, consumer spending, existing home sales and housing starts, all of
which have edged downward at the beginning of 1995. Inflation has not been a
major problem up to this point in the expansion and is likely to move from the
3% area to 3.5% in 1995.
Our rationale continues to be positive and consists of several major factors.
First, the fixed-income market is likely to stay positive in 1995 and lower
rates are positive for equities. If we are correct about lower rates and
moderate inflation of 3.5%, the valuation levels of the stock market are not
excessive. Liquidity has continued into equities and should increase as
emerging market investments recycle back to the U.S. markets. Foreign
investment will also accelerate from record lows particularly when the dollar
begins to show some signs of rallying -- which we think will happen as the
year progresses. The political backdrop suggests more moves toward a balanced
budget and a possible capital gains reduction. With a Presidential election in
1996, the equity markets are more likely to anticipate positive changes than
negative actions.
Our overall long cycle growth thesis continues to rest on a cheap dollar and a
very competitive corporate America that will be very beneficial for our
products abroad. Growth at this point in the U.S. economic expansion cannot be
led primarily by the consumer, and the transition to export growth seems to be
happening on schedule. This year will undoubtedly be filled with many
surprises including periods of renewed consumer and business spending that
will make the bond market uncomfortable for short periods of time. However,
the major trend will be slower growth, moderate inflation, and a Federal
Reserve that will raise rates again if necessary to avoid any overheating of
the economy.
BALANCED ASSETS FUND
With the stock market reaching new highs, we are pleased with the Balanced
Assets Fund's overall performance. We continue to invest in fundamentally
sound multi-national stocks that will benefit from the strengthening global
economy. Our investment strategy is proactive, grounded in the idea that this
economic cycle continues to be structurally different. Growth will continue at
moderate, but sustainable levels in 1995 and 1996, with modest inflation.
During the first quarter of 1995, we increased our exposure to the energy,
interest sensitive and healthcare sectors of the market. It is our contention
that the energy and healthcare sectors are under owned institutionally, and
will benefit not only from sustainable growth with moderate inflation, but
also from investor rotation out of the seasonal, over-owned technology sector
to other fast growth areas of the market, in the second quarter. We believe
that select retailers offer compelling value at present levels. As a group the
retailing sector has been under pressure for sometime, and with easier same-
store sales comparisons going forward, the group is due for a near term rally.
<PAGE>
SUNAMERICA EQUITY FUNDS
BLUE CHIP GROWTH FUND
The equity markets continued to forge ahead during the first quarter of 1995,
casting aside a weak dollar, economic turmoil in Mexico, and derivative
mishaps. Inflation remains in check, with recent inflation information
suggesting that wage inflation is still in the area of 2.5%. The Blue Chip
Growth Fund fully participated in the market's rally and our portfolio remains
quite diversified. It is our belief that the energy and healthcare sectors of
the market will benefit from sustainable growth and investor rotation out of
the seasonal, over-owned technology sector. It is also our contention that
there is a near term trading opportunity in the retail sector of the market,
due to seemingly easier same-store comparisons, delayed tax refunds, and
consumers purchasing more soft goods than hard goods. There is also a window
of opportunity in the gaming sector, as investor's fears of over capacity
abate and earnings momentum accelerates.
MID-CAP GROWTH FUND
The first quarter of 1995 was positive for the equity markets, despite turmoil
in international markets and the dollar crisis. Equities were strong as the
market responded to a favorable bond market and lower open-market interest
rates. For the past two quarters, we had anticipated a strong rally in the
markets lead by growth stocks as the market began to discount an easing of GDP
growth and interest rates in a low inflationary environment. This type of
backdrop favors growth over cyclical issues, with price/earning ratios of
growth stocks expanding as investors are willing to pay a premium for
sustainable, above average returns. In the fourth quarter of 1994 and the
first quarter of 1995, we focused the portfolio on four major growth
industries: technology and telecommunications equipment, healthcare, financial
stocks, and specialty retailing. Toward the end of the first quarter 1995, we
added another industry group, energy. Semiconductor demand continues to be
very strong, with new capacity unable to keep pace with demand. This results
in firmer pricing and spot shortages worldwide, as well as digital circuitry
expanding its end uses in computers, telecommunications and industrial
applications. Our technology holdings also include leading multimedia software
companies like Macromedia, and software giant, Microsoft. We continue to like
the telecommunications equipment suppliers, as they are enjoying rapid growth
from the build out of telephone, cellular and wireless systems worldwide.
After a rocky 1994, the healthcare segment has rebounded strongly, as
proposals for healthcare legislation have dimmed, while earnings continue to
grow consistently. The industry is consolidating and becoming more efficient
in reducing healthcare costs. Although the retail sector in general has been
lackluster, we continue to like dominant companies gaining share through
expansion and consolidation of specific categories.
SMALL COMPANY GROWTH FUND
The Small Company Growth Fund has done well, finishing in the top 10% of the
Lipper calendar year -to-date category, with a return of 9.19% for the Class A
shares (9.11% for the Class B shares), compared to its group average return of
5.57% as ranked by Lipper Analytical Services. We have continued to hold
overweighted positions in technology, telecommunications equipment, healthcare
and retailing. At the end of the quarter, we also added some energy exposure.
Our semiconductor stocks enjoy rapid earnings growth driven by unprecedented
demand for silicon circuitry for ever-expanding uses. Semiconductor equipment
manufacturers are also benefiting from expanding semiconductor plant capacity
and strong order rates for capital equipment. Telecommunications equipment
stocks continue to gain, as order rates improve for new networks of voice,
video and data, wireless, worldwide. Another strong technology segment, local
2
<PAGE>
SUNAMERICA EQUITY FUNDS
area switching, is prominent in the holdings because computer networks are
being upgraded and expanded and thus require additional switching equipment to
deliver more services to more users. The healthcare industry continues to
expand rapidly and we have continued to overweight the segment. We
particularly like the emergence of the healthcare information systems segment,
as well as the specialty retailers which dominate their category and are thus
expanding and gaining share. Finally, we have added some energy exposure to
the portfolio, as we believe that demand and pricing are improving as the
globalization of economic expansion continues.
GLOBAL BALANCED FUND
International equity markets surprised everyone by under performing U.S.
stocks in the first quarter. The rapid decline in the U.S. dollar and the
earthquake in Kobe, Japan had negative impacts for certain foreign markets.
Global economic recovery remains our dominant theme for 1995. However, we
believe that Europe and then Japan will follow a similar pattern to the U.S.
recovery. On that basis, we maintain our 60% allocation in international
equities. We continue to believe that, over the long term, foreign stocks will
reassert their historical trend and outperform U.S. equities. With
approximately 15% of the portfolio in U.S. stocks, we were able to catch some
of the upside in domestic equity markets. We believed that the U.S. stock
markets would look beyond the near-term potential for Federal Reserve-
sponsored interest rate hikes, and push the market higher on the expectation
of an extension of the economic recovery. Currently, we expect a consolidation
or, perhaps, even a correction in the U.S. stock market sometime during the
next three months. In the fixed-income portion of the Global Balanced Fund,
Goldman Sachs kept the majority of the assets in the United States, which
outperformed international bond markets. Consistent with its conservative
fixed-income philosophy, the Fund had no exposure to the chaotic Latin
American bond markets during the quarter.
GROWTH AND INCOME FUND
Late in the fourth quarter of 1994, we added more technology and
telecommunications names, such as IBM, Compaq, Microsoft, Intel, and Amphenol,
which had fallen off their short-term highs. We also added to existing
positions in the cyclical chemical and forest products sectors, and gaming
stocks. Most of these investments, especially in the technology area, reached
our price targets in the first quarter and were sold. The Growth and Income
Fund maintained its emphasis on growth stocks until the last two weeks of the
first quarter. During those two weeks, the percentage of the portfolio in cash
was raised from 5% to 30% due to our short-term concerns regarding the U.S.
equity markets. The first quarter total return performance of the Fund placed
it in the top half of its peer group as ranked by Lipper Analytical Services.
Our shift in strategy at the end of the first quarter is predicated upon our
belief that U.S. equity markets are due for a correction over the next three
months. U.S. stocks appear to be trading higher based upon a strong belief that
the Federal Reserve has engineered a "soft landing" for the U.S. economy and
that moderate earnings growth will continue in a low-inflation environment.
However, the U.S. dollar continues to be weak and the Fed may raise rates at
least once more this year, despite some signs of a slowdown in the domestic
economy. With the market already up close to 10% in 1995's first quarter, it
appears prudent to us to adopt a moderately defensive stance in the Fund until
we see a correction.
3
<PAGE>
SUNAMERICA EQUITY FUNDS
On balance, we are positive on bonds and stocks for the remainder of 1995.
However, we would not be surprised if there was a 3-5% correction in the
second quarter as the market consolidates its gain and reassesses the momentum
of the economy. There will certainly be mixed signals, but we believe that the
majority of evidence will support a slowing economy and the probability of an
extension of this cycle well into 1996. Our portfolio structure going into the
second quarter will emphasize healthcare, energy, and interest sensitive
stocks. We recommend staying invested and prepared to buy in any correction in
the second quarter of the year.
/s/ Stanton J. Feeley
Stanton J. Feeley
Chief Investment Officer
/s/ Audrey L. Snell
Audrey L. Snell
Portfolio Manager
/s/ Charles J. Dudley
Charles J. Dudley
Portfolio Manager
4
<PAGE>
SUNAMERICA EQUITY FUNDS
STATEMENT OF ASSETS AND LIABILITIES -- March 31, 1995 (unaudited)
<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:
Investments securities, at
value (identified cost
$227,139,162;
$62,546,150; $30,809,336;
$73,120,888; $25,493,994
and $3,257,811,
respectively)............ $234,692,856 $67,315,538 $34,937,206 $ 84,832,769 $24,701,005 $3,395,656
Short-term securities
(identified cost $0; $0;
$0; $0; $1,750,000 and
$1,000,000,
respectively)............ -- -- -- -- 1,750,000 1,000,000
Joint repurchase
agreement................ 7,170,000 3,353,000 2,766,000 16,395,000 745,000 35,000
Cash...................... 247 228 614 574 59,646 219
Foreign cash.............. -- -- -- -- 59,615 --
Receivable for investments
sold..................... 18,739,016 12,123,780 3,384,883 10,363,855 125,238 727,791
Interest and dividends
receivable............... 1,191,146 104,410 11,520 7,991 252,986 33,616
Receivable for shares of
beneficial interest sold. 600,028 40,889 47,943 512,305 9,893 5,207
Prepaid expenses.......... 10,565 32,468 5,902 5,861 433 38
Receivable from investment
adviser.................. -- 667 401 -- 6,242 12,009
Unrealized appreciation of
foreign currency
contracts................ -- -- -- -- 273,372 --
Receivable for foreign
currency contracts sold.. -- -- -- -- 24,415 --
Deferred organizational
expenses................. -- -- -- -- 7,867 6,291
------------ ----------- ----------- ------------ ----------- ----------
Total assets............. 262,403,858 82,970,980 41,154,469 112,118,355 28,015,712 5,215,827
------------ ----------- ----------- ------------ ----------- ----------
LIABILITIES:
Payable for investments
purchased................ 17,321,061 5,687,860 2,190,739 10,942,331 88,314 341,880
Payable for securities
loaned................... 5,143,750 -- -- -- -- --
Payable for shares of
beneficial interest
redeemed................. 232,885 47,282 19,264 69,199 18,861 --
Distribution and service
maintenance fees payable. 171,188 59,724 13,179 57,036 15,793 1,930
Investment advisory and
management fees payable.. 150,526 46,090 22,989 60,675 23,341 2,943
Accrued expenses.......... 149,436 97,366 52,715 57,829 48,377 38,566
Dividends payable......... 58,766 -- -- -- -- 628
Unrealized depreciation of
foreign currency
contracts................ -- -- -- -- 457,144 --
Payable for foreign
currency contracts
purchased................ -- -- -- -- 24,451 --
Written call options at
value (proceeds $4,076 on
Global Balanced Fund).... -- -- -- -- 23,028 --
------------ ----------- ----------- ------------ ----------- ----------
Total liabilities........ 23,227,612 5,938,322 2,298,886 11,187,070 699,309 385,947
------------ ----------- ----------- ------------ ----------- ----------
Net assets............ $239,176,246 $77,032,658 $38,855,583 $100,931,285 $27,316,403 $4,829,880
============ =========== =========== ============ =========== ==========
NET ASSETS WERE COMPOSED
OF:
Shares of beneficial
interest, $.01 par value. $ 164,565 $ 52,182 $ 26,087 $ 52,749 $ 40,680 $ 6,242
Paid-in capital........... 232,728,562 72,785,348 35,126,042 79,385,958 28,478,558 4,589,354
------------ ----------- ----------- ------------ ----------- ----------
232,893,127 72,837,530 35,152,129 79,438,707 28,519,238 4,595,596
Accumulated undistributed
net investment income
(loss)................... 187,430 26,679 (85,162) (190,879) 149,201 3,768
Accumulated undistributed
net realized gain (loss)
on investments........... (1,458,005) (600,939) (339,254) 9,971,576 (308,383) 92,671
Accumulated net realized
loss on foreign currency,
other assets and
liabilities.............. -- -- -- -- (57,765) --
Net unrealized
appreciation/depreciation
of investments........... 7,553,694 4,769,388 4,127,870 11,711,881 (792,989) 137,845
Net unrealized
depreciation of written
options.................. -- -- -- -- (18,951) --
Net unrealized
depreciation of foreign
currency, other assets
and liabilities.......... -- -- -- -- (173,948) --
------------ ----------- ----------- ------------ ----------- ----------
Net assets............ $239,176,246 $77,032,658 $38,855,583 $100,931,285 $27,316,403 $4,829,880
============ =========== =========== ============ =========== ==========
CLASS A (UNLIMITED SHARES
AUTHORIZED):
Net asset value and
redemption price per
share
($54,075,000/3,720,679;
$3,248,479/218,189;
$32,662,086/2,189,725;
$45,480,130/2,363,527;
$13,202,081/1,961,384 and
$3,747,555/484,339 net
assets and shares of
beneficial interest
issued and outstanding,
respectively)............ $ 14.53 $ 14.89 $ 14.92 $ 19.24 $ 6.73 $ 7.74
Maximum sales charge
(5.75% of offering
price)................... 0.89 0.91 0.91 1.17 0.41 0.47
------------ ----------- ----------- ------------ ----------- ----------
Maximum offering price to
public................... $ 15.42 $ 15.80 $ 15.83 $ 20.41 $ 7.14 $ 8.21
============ =========== =========== ============ =========== ==========
CLASS B (UNLIMITED SHARES
AUTHORIZED):
Net asset value, offering
and redemption price per
share
($185,101,246/12,735,790;
$73,784,179/5,000,049;
$6,193,497/419,003;
$55,451,155/2,911,342;
$14,114,322/2,106,627 and
$1,082,325/139,858 net
assets and shares of
beneficial interest
issued and outstanding,
respectively) $ 14.53 $ 14.76 $ 14.78 $ 19.05 $ 6.70 $ 7.74
============ =========== =========== ============ =========== ==========
</TABLE>
See Notes to Financial Statements
5
<PAGE>
SUNAMERICA EQUITY FUNDS
STATEMENT OF OPERATIONS -- For the six months ended March 31, 1995 (unaudited)
<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................. $ 2,349,732 $ 123,909 $ 116,143 $ 541,344 $ 342,411 $ 28,585
Dividends (net of
withholding taxes of
$8,000; $10,639; $1,220;
$732; $16,938 and $16,
respectively)........... 2,056,327 733,096 129,965 154,963 158,430 56,844
----------- ---------- ---------- ----------- --------- --------
Total investment income.. 4,406,059 857,005 246,108 696,307 500,841 85,429
----------- ---------- ---------- ----------- --------- --------
Expenses:
Investment advisory and
management fees......... 861,115 279,699 137,284 342,339 141,789 14,684
Distribution and service
maintenance fees--Class
A....................... 90,541 5,457 54,937 72,300 24,429 5,709
Distribution and service
maintenance fees--Class
B....................... 889,467 357,341 26,083 249,881 71,992 3,268
Transfer agent fees and
expenses--Class A....... 71,576 9,867 44,000 58,154 18,400 8,357
Transfer agent fees and
expenses--Class B....... 241,484 99,438 14,389 72,148 19,911 8,323
Custodian fees and
expenses................ 56,980 37,695 34,840 43,840 79,070 21,150
Registration fees--Class
A....................... 7,430 4,019 7,416 9,573 4,670 3,704
Registration fees--Class
B....................... 9,602 13,958 5,581 11,134 4,699 5,785
Audit and tax consulting
fees.................... 22,727 9,750 8,570 13,145 8,195 5,945
Trustees' fees and
expenses................ 9,266 4,243 2,376 3,745 1,222 313
Printing expense......... 5,100 4,855 2,810 5,515 1,126 1,340
Insurance expense........ 3,281 1,185 540 1,243 316 44
Legal fees and expenses.. 1,895 2,530 1,382 2,835 2,285 1,735
Interest expense......... -- 7,923 746 -- -- --
Amortization of
organizational expenses. -- -- -- -- 11,357 11,088
Miscellaneous expenses... 2,275 1,364 1,121 1,334 972 910
----------- ---------- ---------- ----------- --------- --------
Total expenses........... 2,272,739 839,324 342,075 887,186 390,433 92,355
Less: expenses
waived/reimbursed
by investment
adviser............ -- (8,998) (10,554) -- (38,793) (74,230)
----------- ---------- ---------- ----------- --------- --------
Net expenses............. 2,272,739 830,326 331,521 887,186 351,640 18,125
----------- ---------- ---------- ----------- --------- --------
Net investment income
(loss)................... 2,133,320 26,679 (85,413) (190,879) 149,201 67,304
----------- ---------- ---------- ----------- --------- --------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss)
on investments........... 147,788 (554,086) 1,668,900 12,205,147 (292,418) 177,702
Net realized gain on
foreign currency and
other assets and
liabilities.............. -- -- -- -- 27,626 --
Net change in unrealized
appreciation/depreciation
of investments........... 10,161,807 3,330,280 1,460,972 2,841,047 (494,289) 82,111
Net change in unrealized
appreciation/depreciation
of written options....... -- -- -- -- (18,951) --
Net change in unrealized
appreciation/depreciation
of foreign currency and
other assets and
liabilities.............. -- -- -- -- (177,349) --
----------- ---------- ---------- ----------- --------- --------
Net realized and
unrealized gain (loss) on
investments, foreign
currency and other assets
and liabilities.......... 10,309,595 2,776,194 3,129,872 15,046,194 (955,381) 259,813
----------- ---------- ---------- ----------- --------- --------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS............... $12,442,915 $2,802,873 $3,044,459 $14,855,315 $(806,180) $327,117
=========== ========== ========== =========== ========= ========
</TABLE>
See Notes to Financial Statements
6
<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 SIX MONTHS FOR THE YEAR FOR THE SIX MONTHS FOR THE YEAR FOR THE SIX MONTHS FOR THE YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
MARCH 31, 1995 SEPTEMBER 30, MARCH 31, 1995 SEPTEMBER 30, MARCH 31, 1995 SEPTEMBER 30,
(UNAUDITED) 1994 (UNAUDITED) 1994 (UNAUDITED) 1994
------------------ ------------- ------------------ ------------- ------------------ -------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
OPERATIONS:
Net investment income
(loss)............... $ 2,133,320 $ 3,273,547 $ 26,679 $ (29,169) $ (85,413) $ 103,839
Net realized gain
(loss) on
investments.......... 147,788 10,239,438 (554,086) 8,104,529 1,668,900 (562,925)
Net change in
unrealized
appreciation/depreciation
of investments....... 10,161,807 (14,392,701) 3,330,280 (9,743,916) 1,460,972 (3,332,519)
------------ ------------ ----------- ----------- ----------- -----------
Increase (decrease) in
net assets resulting
from operations....... 12,442,915 (879,716) 2,802,873 (1,668,556) 3,044,459 (3,791,605)
------------ ------------ ----------- ----------- ----------- -----------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income (Class A)..... (1,053,743) (888,983) -- -- (81,918) --
From net investment
income (Class B)..... (3,108,332) (2,111,163) -- -- (10,660) --
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......... (13,238,707) (6,803,646) (5,484,894) (3,278,000) (92,578) (5,883,500)
------------ ------------ ----------- ----------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS
RESULTING FROM CAPITAL
SHARE TRANSACTIONS
(NOTE 10)............. 7,218,381 69,599,491 4,758,266 128,688 (1,041,301) 11,701,924
------------ ------------ ----------- ----------- ----------- -----------
TOTAL INCREASE
(DECREASE) IN NET
ASSETS................ 6,422,589 61,916,129 2,076,245 (4,817,868) 1,910,580 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 March 31,
1995 and September 30,
1994 of $187,430;
$2,216,185; $26,679;
$0; $(85,165) and
$92,829,
respectively]......... $239,176,246 $232,753,657 $77,032,658 $74,956,413 $38,855,583 $36,945,003
============ ============ =========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements
7
<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 SIX MONTHS FOR THE YEAR FOR THE SIX MONTHS FOR THE PERIOD FOR THE SIX MONTHS FOR THE PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
MARCH 31, 1995 SEPTEMBER 30, MARCH 31, 1995 SEPTEMBER 30, MARCH 31, 1995 SEPTEMBER 30,
(UNAUDITED) 1994 (UNAUDITED) 1994(A) (UNAUDITED) 1994(A)
------------------ ------------- ------------------ -------------- ------------------ --------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE IN NET
ASSETS:
OPERATIONS:
Net investment
income (loss)...... $ (190,879) $ (758,937) $ 149,201 $ 36,678 $ 67,304 $ 28,400
Net realized gain
(loss) on
investments........ 12,205,147 2,130,417 (292,418) (8,690) 177,702 (8,242)
Net realized gain
(loss) on foreign
currency, other
assets and
liabilities........ -- -- 27,626 (85,391) -- --
Net change in
unrealized
appreciation/depreciation
of investments..... 2,841,047 (7,542,139) (494,289) (298,700) 82,111 55,734
Net change in
unrealized
depreciation of
written options.... -- -- (18,951) -- -- --
Net change in
unrealized
appreciation/
depreciation of
foreign currency,
other assets and
liabilities........ -- -- (177,349) 3,401 -- --
------------ ----------- ----------- ----------- ---------- ----------
Increase (decrease)
in net assets
resulting from
operations......... 14,855,315 (6,170,659) (806,180) (352,702) 327,117 75,892
------------ ----------- ----------- ----------- ---------- ----------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income (Class A)... -- -- (24,611) -- (54,251) (25,414)
From net investment
income (Class B)... -- -- (12,067) -- (10,786) (1,485)
From net realized
gains on
investments (Class
A)................. (985,429) (3,220,794) (3,604) -- (63,469) --
From net realized
gains on
investments (Class
B)................. (1,123,043) (3,913,206) (3,671) -- (13,320) --
------------ ----------- ----------- ----------- ---------- ----------
Total dividends and
distributions to
shareholders....... (2,108,472) (7,134,000) (43,953) -- (141,826) (26,899)
------------ ----------- ----------- ----------- ---------- ----------
NET INCREASE
(DECREASE) IN NET
ASSETS RESULTING
FROM CAPITAL SHARE
TRANSACTIONS (NOTE
10)................. (2,593,639) 25,945,929 1,534,761 26,984,477 1,316,876 3,278,720
------------ ----------- ----------- ----------- ---------- ----------
TOTAL INCREASE IN NET
ASSETS.............. 10,153,204 12,641,270 684,628 26,631,775 1,502,167 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 March 31, 1995
and September 30,
1994 of $190,883;
$0; $149,201;
$36,678; $3,768; and
$1,501,
respectively]....... $100,931,285 $90,778,081 $27,316,403 $26,631,775 $4,829,880 $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
8
<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)
---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ----------
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
03/31/95(5)..... 14.62 0.17 0.62 0.79 (0.30) (0.58) (0.88) 14.53 5.76 54,075
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED NET ASSETS NET ASSETS TURNOVER
---------------- ------------- -------------- ---------
CLASS A
-------
<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
03/31/95(5)..... 1.49(4) 2.34(4) 76
<CAPTION>
CLASS B
-------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
06/30/92........ $15.75 $0.33 $ 0.98 $ 1.31 $(0.42) $(1.01) $(1.43) $15.63 7.51% $ 83,234
06/30/93........ 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....... 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
03/31/95(5)..... 14.62 0.12 0.62 0.74 (0.25) (0.58) (0.83) 14.53 5.44 185,101
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED NET ASSETS NET ASSETS TURNOVER
---------------- ------------- -------------- ---------
CLASS B
-------
<S> <C> <C> <C>
06/30/92........ 1.93%(6) 2.04%(6) 151%
06/30/93........ 1.91(7) 1.94(7) 251
07/01/93-
09/30/93....... 2.10(4)(8) 1.36(4)(8) 25
09/30/94........ 2.21 1.36 141
03/31/95(5)..... 2.12(4) 1.72(4) 76
</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)
---------------- --------- ------- ----------- ---------- --------- ------- ------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
-------
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
03/31/95(5)..... 15.42 0.05(1) 0.51 0.56 -- (1.09) (1.09) 14.89 4.16 3,248
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED NET ASSETS NET ASSETS TURNOVER
---------------- -------------- -------------- ---------
CLASS A
-------
<S> <C> <C> <C>
10/08/93-
9/30/94(3)..... 1.64%(4)(9) 0.65%(4)(9) 170%
03/31/95(5)..... 1.60(4)(10) 0.69(4)(10) 126
CLASS B
-------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/91........ $ 9.65 $(0.06) $ 2.94 $ 2.88 $ -- $ -- $ -- $12.53 29.84% $105,734
12/31/92........ 12.53 (0.13) 1.19 1.06 -- -- -- 13.59 8.46 83,237
1/01/93-
9/30/93........ 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
03/31/95(5)..... 15.34 -- (1) 0.51 0.51 -- (1.09) (1.09) 14.76 3.84 73,784
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED NET ASSETS NET ASSETS TURNOVER
---------------- -------------- -------------- ---------
CLASS B
-------
<S> <C> <C> <C>
12/31/91........ 2.50% (0.42) % 79%
12/31/92........ 2.53 (0.75) 192
1/01/93-
9/30/93........ 2.46(4) (0.14) (4) 171
9/30/94......... 2.28 (0.05) 170
03/31/95(5)..... 2.25(4) 0.04 (4) 126
</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) Unaudited
(6) Net of expense reimbursement equivalent to .12% of average net assets in
fiscal 1992
(7) Net of expense reimbursement equivalent to .05% of average net assets in
fiscal 1993
(8) Net of expense reimbursement equivalent to .04% of average net assets for
the period ended 9/30/93
(9) Net of expense reimbursement equivalent to 1.66% of average net assets for
the period ended 9/30/94
(10) Net of expense reimbursement equivalent to 0.58% of average net assets for
the six months ended 3/31/95
See Notes to Financial Statements
9
<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)
---------------- --------- ------- ----------- ---------- --------- ------- ------- --------- --------- ----------
CLASS A
-------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/91........ $12.90 $0.16 $ 3.09 $ 3.25 $(0.25) $(2.60) $(2.85) $13.30 31.13% $29,142
11/30/92........ 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........ 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
3/31/95(4)...... 13.78 (0.03)(2) 1.21 1.18 (0.04) -- (0.04) 14.92 8.55 32,662
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED NET ASSETS NET ASSETS TURNOVER
---------------- -------------- ----------------- ---------
CLASS A
-------
<S> <C> <C> <C>
11/30/91........ 1.76% 1.20 % 225%
11/30/92........ 1.76 (0.46) 98
12/01/92-
9/30/93........ 1.81(3) 1.18 (3) 231
9/30/94......... 1.76 0.28 555
3/31/95(4)...... 1.71(3) (0.38) (3) 255
<CAPTION>
CLASS B
-------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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
3/31/95(4)...... 13.70 (0.08)(2) 1.18 1.10 (0.02) -- (0.02) 14.78 8.07 6,193
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED NET ASSETS NET ASSETS TURNOVER
---------------- -------------- ----------------- ---------
CLASS B
-------
<S> <C> <C> <C>
10/04/93-
9/30/94(5)..... 2.43%(3)(6) 0.20 %(3)(6) 555%
3/31/95(4)...... 2.39(3)(7) (1.00) (3)(7) 255
</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
---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ---------- ----------
CLASS A
-------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/91(8)..... $11.88 $(0.01) $ 4.92 $ 4.91 $ -- $(2.91) $(2.91) $13.88 52.05% $27,832 1.86%
11/30/92(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(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
3/31/95(4)...... 16.82 (0.01) 2.84 2.83 -- (0.41) (0.41) 19.24 17.08 45,480 1.58(3)
<CAPTION>
RATIO OF NET
INVESTMENT
INCOME
PERIOD TO AVERAGE PORTFOLIO
ENDED NET ASSETS TURNOVER
---------------- ------------- ---------
CLASS A
-------
<S> <C> <C>
11/30/91(8)..... (0.06)% 110%
11/30/92(8)..... (0.88) 209
12/01/92-
9/30/93(8)..... (0.15)(3) 216
9/30/94......... (0.60) 411
3/31/95(4)...... (0.06)(3) 220
<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
---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ---------- ----------
CLASS B
-------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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
3/31/95(4)...... 16.70 (0.06) 2.82 2.76 -- (0.41) (0.41) 19.05 16.78 55,451 2.24(3)
<CAPTION>
RATIO OF NET
INVESTMENT
INCOME
PERIOD TO AVERAGE PORTFOLIO
ENDED NET ASSETS TURNOVER
---------------- ------------- ---------
CLASS B
-------
<S> <C> <C>
9/24/93-
9/30/93(5)..... (1.70)%(3) 216%
9/30/94......... (1.23) 411
3/31/95(4)...... (0.71)(3) 220
</TABLE>
------------
(1) Total return is not annualized and does not reflect sales load
(2) Calculated based upon average shares outstanding
(3) Annualized
(4) Unaudited
(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 .40% of average net assets for
the six months ended March 31, 1995
(8) Restated to reflect a 0.984460367 for 1.00 stock split effective September
24, 1993
See Notes to Financial Statements
10
<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)
---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ----------
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
3/31/95(6)...... 6.91 0.04 (0.21) (0.17) (0.01) -- (0.01) 6.73 (2.41) 13,202
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED NET ASSETS NET ASSETS TURNOVER
---------------- -------------- --------------- ---------
CLASS A
-------
<S> <C> <C> <C>
6/15/94-
9/30/94(3)..... 2.15%(4)(5) 0.93%(4)(5) 18%
3/31/95(6)...... 2.15(4)(7) 1.38(4)(7) 68
<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)
---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ----------
CLASS B
-------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/16/94-
9/30/94(3)..... $6.94 $0.01 $(0.05) $(0.04) $ -- $ -- $ -- $6.90 (0.58)% $13,532
3/31/95(6)...... 6.90 0.02 (0.21) (0.19) (0.01) -- (0.01) 6.70 (2.79) 14,114
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED NET ASSETS NET ASSETS TURNOVER
---------------- -------------- --------------- ---------
CLASS B
-------
<S> <C> <C> <C>
6/16/94-
9/30/94(3)..... 2.80%(4)(8) 0.33%(4)(8) 18%
3/31/95(6)...... 2.80(4)(9) 0.74(4)(9) 68
</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)
---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ----------
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
3/31/95(6)...... 7.44 0.13 0.44 0.57 (0.12) (0.15) (0.27) 7.74 7.81 3,748
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED NET ASSETS NET ASSETS TURNOVER
---------------- --------------- ---------------- ---------
CLASS A
-------
<S> <C> <C> <C>
7/01/94-
9/30/94(3)..... 1.50%(4)(10) 3.48%(4)(10) 8%
3/31/95(6)...... 0.91(4)(11) 3.45(4)(11) 121
<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)
---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ----------
CLASS B
-------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/06/94-
9/30/94(3)..... $7.33 $0.05 $0.11 $0.16 $(0.05) $ -- $(0.05) $7.44 2.19% $ 229
3/31/95(6)...... 7.44 0.13 0.42 0.55 (0.10) (0.15) (0.25) 7.74 7.50 1,082
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED NET ASSETS NET ASSETS TURNOVER
---------------- --------------- ---------------- ---------
CLASS B
-------
<S> <C> <C> <C>
7/06/94-
9/30/94(3)..... 2.15%(4)(12) 2.86%(4)(12) 8%
3/31/95(6)...... 1.02(4)(13) 3.37(4)(13) 121
</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 expense reimbursement equivalent to 1.14% of average net assets for
the period ending 9/30/94
(6) Unaudited
(7) Net of expense reimbursement equivalent to .27% of average net assets for
the six months ended 3/31/95
(8) Net of expense reimbursement equivalent to .93% of average net assets for
the period ended 9/30/94
(9) Net of expense reimbursement equivalent to .28% of average net assets for
the six months ended 3/31/95
(10) Net of expense reimbursement equivalent to 4.48% of average net assets for
the period ended 9/30/94
(11) Net of expense reimbursement equivalent to 2.89% of average net assets for
the six months ended 3/31/95
(12) Net of expense reimbursement equivalent to 20.35% of average net assets
for the period ended 9/30/94
(13) Net of expense reimbursement equivalent to 8.28% of average net assets for
the six months ended 3/31/95
See Notes to Financial Statements
11
<PAGE>
SUNAMERICA BALANCED ASSETS FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 4)
------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK--69.0%
AEROSPACE & MILITARY TECHNOLOGY--0.5%
AlliedSignal, Inc. ..................................... 30,000 $ 1,177,500
------------
APPAREL & TEXTILES--2.9%
NIKE, Inc. ............................................. 60,000 4,477,500
Tommy Hilfiger Corp.+................................... 25,000 550,000
Warnaco Group, Inc.+.................................... 100,000 1,787,500
------------
6,815,000
------------
AUTOMOTIVE--0.7%
General Motors Corp. ................................... 40,000 1,770,000
------------
BANKS--5.2%
Bank Of Boston Corp. ................................... 40,000 1,190,000
BankAmerica Corp. ...................................... 50,000 2,412,500
Citicorp................................................ 25,000 1,062,500
First Fidelity Bancorp.................................. 40,000 1,980,000
Great Western Financial Corp. .......................... 30,000 562,500
Mellon Bank Corp. ...................................... 25,000 1,018,750
Shawmut National Corp. ................................. 75,000 1,978,125
Summit Bancorp.......................................... 66,000 1,237,500
UJB Financial Corp. .................................... 40,000 1,100,000
------------
12,541,875
------------
BROADCASTING & MEDIA--1.0%
Time Warner, Inc........................................ 30,000 1,132,500
Viacom, Inc.+........................................... 30,000 1,342,500
------------
2,475,000
------------
CHEMICALS--2.5%
Dow Chemical Co. ....................................... 10,000 730,000
du Pont (E.I.) de Nemours & Co. ........................ 37,500 2,268,750
Rohm & Haas Co. ........................................ 25,000 1,475,000
Union Carbide Corp. .................................... 50,000 1,531,250
------------
6,005,000
------------
COMMUNICATION EQUIPMENT--0.7%
Motorola, Inc........................................... 30,000 1,638,750
------------
COMPUTERS & BUSINESS EQUIPMENT--3.0%
General Motors Corp., Class E........................... 35,000 1,360,625
International Business Machines Corp. .................. 40,000 3,275,000
Seagate Technology...................................... 50,000 1,393,750
Xerox Corp.............................................. 10,000 1,173,750
------------
7,203,125
------------
DEPARTMENT STORES--3.1%
Penney (J.C.), Inc. .................................... 40,000 1,795,000
Woolworth Corp. ........................................ 300,000 5,512,500
------------
7,307,500
------------
ELECTRONICS--0.9%
Emerson Electric Co. ................................... 15,000 997,500
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 4)
<S> <C> <C>
ELECTRONICS (CONTINUED)
Loral Corp. .............................................. 25,000 $ 1,062,500
-----------
2,060,000
-----------
ENERGY SERVICES--3.3%
Baker Hughes, Inc. ....................................... 70,000 1,426,250
BJ Services Co.+.......................................... 80,000 1,640,000
Rowan Cos., Inc.+......................................... 90,000 585,000
Schlumberger Ltd. ADR(1).................................. 30,000 1,788,750
Tenneco, Inc. ............................................ 50,557 2,382,499
-----------
7,822,499
-----------
ENERGY SOURCES--5.5%
Amerada Hess Corp. ....................................... 15,000 740,625
Amoco Corp. .............................................. 40,000 2,545,000
Anadarko Petroleum Corp................................... 20,000 875,000
Exxon Corp. .............................................. 20,000 1,335,000
Kerr-McGee Corp........................................... 30,000 1,530,000
Mobil Corp. .............................................. 30,000 2,778,750
Occidental Petroleum Corp. ............................... 70,000 1,531,250
Royal Dutch Petroleum Co. ADR(1).......................... 15,000 1,800,000
-----------
13,135,625
-----------
FINANCIAL SERVICES--1.4%
Capital One Financial Corp. .............................. 25,000 478,125
Dean Witter, Discover & Co. .............................. 25,000 1,018,750
First USA, Inc. .......................................... 15,000 630,000
MBNA Corp. ............................................... 30,000 870,000
Morgan Stanley Group, Inc. ............................... 5,000 336,875
-----------
3,333,750
-----------
FOOD, BEVERAGE & TOBACCO--2.6%
Buenos Aires Embotelladora SA ADR+(1)..................... 20,000 520,000
ConAgra, Inc. ............................................ 25,000 828,125
Heinz (H. J.) Co. ........................................ 35,000 1,347,500
IBP, Inc. ................................................ 45,000 1,468,125
Quaker Oats Co. .......................................... 10,000 331,250
RJR Nabisco Holdings Corp. ............................... 150,000 881,250
UST, Inc. ................................................ 30,000 952,500
-----------
6,328,750
-----------
FOREST PRODUCTS--1.8%
Georgia Pacific Corp. .................................... 30,000 2,392,500
Scott Paper Co. .......................................... 20,000 1,787,500
-----------
4,180,000
-----------
HEALTH SERVICES--6.5%
Caremark International, Inc. ............................. 75,000 1,481,250
Coram Healthcare Corp.+................................... 55,000 1,395,625
Health Systems International, Inc. ....................... 35,300 1,186,962
HEALTHSOUTH Rehabilitation+............................... 30,000 1,218,750
Hillhaven Corp.+.......................................... 95,000 2,517,500
Humana, Inc.+............................................. 30,000 768,750
</TABLE>
12
<PAGE>
SUNAMERICA BALANCED ASSETS FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1995 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
HEALTH SERVICES (CONTINUED)
OrNda Healthcorp+.......................................... 40,000 $ 685,000
Pacificare Health Systems, Inc.+........................... 28,000 2,023,000
Tenet Healthcare........................................... 100,000 1,587,500
U.S. HealthCare, Inc. ..................................... 30,000 1,327,500
United Healthcare Corp. ................................... 30,000 1,402,500
----------
15,594,337
----------
HOTELS & CASINOS--1.6%
Hilton Hotels Corp. ....................................... 20,000 1,482,500
Mirage Resorts, Inc.+...................................... 60,000 1,680,000
Promus Cos., Inc.+......................................... 17,500 656,250
----------
3,818,750
----------
HOUSEHOLD PRODUCTS--2.8%
Eastman Kodak Co. ......................................... 20,000 1,062,500
Gillette Co. .............................................. 20,000 1,632,500
Johnson & Johnson Co. ..................................... 45,400 2,701,300
Ralston-Purina Co. ........................................ 30,000 1,432,500
----------
6,828,800
----------
INDUSTRIALS--1.0%
American Standard Cos., Inc................................ 30,000 742,500
General Electric Co. ...................................... 30,000 1,623,750
----------
2,366,250
----------
INSURANCE--1.4%
Equitable Cos., Inc. ...................................... 35,000 770,000
St. Paul Cos., Inc. ....................................... 25,000 1,250,000
Travelers, Inc. ........................................... 32,333 1,248,862
----------
3,268,862
----------
MEDICAL PRODUCTS--1.8%
Becton Dickinson & Co. .................................... 30,000 1,627,500
Scherer (R.P.) Corp. ADR+(1)............................... 25,000 1,256,250
Perkin Elmer Corp. ........................................ 50,000 1,456,250
----------
4,340,000
----------
METALS & MINING--0.4%
Kennametal, Inc. .......................................... 35,000 940,625
----------
PHARMACEUTICALS--9.3%
American Home Products Corp. .............................. 20,000 1,425,000
Amgen, Inc.+............................................... 20,000 1,347,500
Ivax Corp. ................................................ 40,000 1,000,000
Lilly (Eli) & Co. ......................................... 25,000 1,828,125
Marion Merrell Dow, Inc. .................................. 30,000 742,500
Merck & Co., Inc. ......................................... 44,000 1,875,500
Pfizer, Inc. .............................................. 25,000 2,143,750
Schering-Plough Corp. ..................................... 40,000 2,975,000
Smithkline Beecham PLC ADR(1) ............................. 65,000 2,437,500
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 4)
<S> <C> <C>
PHARMACEUTICALS (CONTINUED)
Upjohn Co. ................................................ 60,000 $ 2,145,000
Warner-Lambert Co. ........................................ 55,000 4,303,750
------------
22,223,625
------------
POLLUTION CONTROL--0.6%
Browning-Ferris Industries, Inc. .......................... 40,000 1,360,000
------------
REAL ESTATE--1.5%
Healthcare Realty Trust.................................... 55,000 1,086,250
Home Properties New York, Inc. ............................ 35,000 643,125
JP Realty, Inc. ........................................... 40,000 810,000
TriNet Corporate Realty Trust, Inc. ....................... 40,000 1,070,000
------------
3,609,375
------------
SPECIALTY RETAIL--2.4%
AnnTaylor Stores Corp. .................................... 30,000 1,117,500
Barnes & Noble, Inc.+...................................... 20,000 607,500
Harcourt General, Inc. .................................... 20,000 780,000
Home Depot, Inc.+ ......................................... 25,000 1,106,250
Limited, Inc. ............................................. 90,000 2,081,250
------------
5,692,500
------------
TELECOMMUNICATIONS--3.5%
AirTouch Communications, Inc.+............................. 40,000 1,090,000
AT&T Corp. ................................................ 50,000 2,587,500
Ericsson (L.M.) Telephone Co. ADR(1)....................... 30,000 1,854,375
Tele Danmark A/S ADR(1).................................... 40,000 1,060,000
United Technologies Corp. ................................. 15,000 1,036,875
Vodafone Group PLC ADR(1).................................. 25,000 828,125
------------
8,456,875
------------
TRANSPORTATION--0.5%
Conrail, Inc. ............................................. 20,000 1,122,500
------------
UTILITIES--0.6%
Houston Industries, Inc. .................................. 40,000 1,525,000
------------
TOTAL COMMON STOCK
(COST $154,351,668)........................................ 164,941,873
------------
PREFERRED STOCK--1.3%
ENERGY SOURCES--1.3%
Occidental Petroleum Corp. (cost $3,000,000)............... 60,000 3,120,000
------------
</TABLE>
13
<PAGE>
SUNAMERICA BALANCED ASSETS FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1995 (unaudited) -- (continued)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 4)
--------------------------------------------------------------------------------
<S> <C> <C>
BONDS & NOTES--4.9%
APPAREL & TEXTILES--1.3%
Bass America, Inc.
8.13% due 3/31/02............................... $3,000 $ 3,061,980
------------
BANKS--0.8%
Chase Manhattan Corp.
7.88% due 8/01/04............................... 2,000 1,958,980
------------
COMPUTERS & BUSINESS EQUIPMENT--0.9%
Apple Computer, Inc.
6.50% due 2/15/04............................... 2,500 2,256,575
------------
FINANCIAL SERVICES--1.9%
Bear Stearns Cos., Inc.
6.63% due 1/15/04............................... 5,000 4,469,450
------------
TOTAL BONDS & NOTES
(COST $12,007,995)............................... 11,746,985
------------
U.S. TREASURY NOTES--20.4%
4.38% due 8/15/96................................ 5,000 4,854,700
5.13% due 2/28/98................................ 5,000 4,766,400
5.50% due 9/30/97-4/15/00........................ 7,750 7,368,335
5.75% due 8/15/03................................ 7,000 6,350,330
6.75% due 5/31/99................................ 5,000 4,944,550
6.88% due 7/31/99................................ 8,000 7,937,520
7.25% due 2/15/98................................ 3,300 3,329,403
7.50% due 2/15/05................................ 5,000 5,101,550
9.25% due 8/15/98................................ 4,000 4,268,120
------------
48,920,908
------------
TOTAL U.S. TREASURY NOTES
(COST $50,912,780)............................... 48,920,908
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY BONDS--2.5%
6.25% due 8/15/23 (cost $6,866,719)............ $7,000 $ 5,963,090
------------
TOTAL INVESTMENT SECURITIES--98.1%
(COST $227,139,162)........................... 234,692,856
------------
REPURCHASE AGREEMENT--3.0%
Joint Repurchase Agreement Account (Note 5)
(cost $7,170,000)............................. 7,170 7,170,000
------------
TOTAL INVESTMENTS--(COST $234,309,162).......... 101.1% 241,862,856
Liabilities in excess of other assets........... (1.1) (2,686,610)
----- ------------
NET ASSETS-- 100.0% $239,176,246
===== ============
</TABLE>
--------
+ Non-income producing security
(1) ADR ("American Depositary Receipt")
See Note to Financial Statements
14
<PAGE>
SUNAMERICA BLUE CHIP GROWTH FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1995 (unaudited)
<TABLE>
<CAPTION>
SECURITY VALUE
DESCRIPTION SHARES (NOTE 4)
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK--87.4%
AEROSPACE & MILITARY
TECHNOLOGY--1.3%
Boeing Co........... 10,000 $ 538,750
General Dynamics
Corp. ............. 10,000 470,000
-----------
1,008,750
-----------
APPAREL & TEXTILES--
3.1%
Authentic Fitness
Corp.+............. 10,500 168,000
NIKE, Inc. ......... 30,000 2,238,750
-----------
2,406,750
-----------
AUTOMOTIVE--1.2%
General Motors
Corp. ............. 20,000 885,000
-----------
BANKS--5.4%
Bank Of Boston
Corp. ............. 20,000 595,000
BankAmerica Corp. .. 20,000 965,000
First Fidelity
Bancorp............ 20,000 990,000
Mellon Bank Corp. .. 10,000 407,500
Shawmut National
Corp. ............. 25,000 659,375
Summit Bancorp...... 27,500 515,625
-----------
4,132,500
-----------
BROADCASTING &
MEDIA--2.7%
CBS, Inc............ 10,000 640,000
Time Warner, Inc.... 15,000 566,250
Viacom, Inc.+....... 20,000 895,000
-----------
2,101,250
-----------
CHEMICALS--4.3%
Cytec Industries,
Inc.+.............. 25,000 909,375
Dow Chemical Co..... 10,000 730,000
du Pont (E.I.) de
Nemours & Co....... 15,000 907,500
Union Carbide Corp.. 25,000 765,625
-----------
3,312,500
-----------
COMMUNICATION
EQUIPMENT--0.7%
Motorola, Inc....... 10,000 546,250
-----------
COMPUTERS & BUSINESS
EQUIPMENT--2.0%
Seagate Technology+. 40,000 1,115,000
Texas Instruments,
Inc................ 5,000 442,500
-----------
1,557,500
-----------
DEPARTMENT STORES--
3.0%
Penney (J.C.), Inc.. 10,000 448,750
Woolworth Corp...... 100,000 1,837,500
-----------
2,286,250
-----------
ELECTRONICS--0.8%
Loral Corp.......... 15,000 637,500
-----------
ENERGY SERVICES--3.7%
Baker Hughes, Inc... 30,000 611,250
BJ Services Co.+.... 50,000 1,025,000
Case Corp........... 15,000 375,000
<CAPTION>
SECURITY VALUE
DESCRIPTION SHARES (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
ENERGY SERVICES
(CONTINUED)
Rowan Cos., Inc.+... 40,000 $ 260,000
Schlumberger Ltd.
ADR(1)............. 10,000 596,250
-----------
2,867,500
-----------
ENERGY SOURCES--6.9%
Amoco Corp.......... 30,000 1,908,750
Anadarko Petroleum
Corp............... 20,000 875,000
Dresser Industries,
Inc................ 10,000 212,500
Exxon Corp.......... 5,000 333,750
Kerr-McGee Corp. ... 20,000 1,020,000
Mobil Corp.......... 10,000 926,250
-----------
5,276,250
-----------
FINANCIAL SERVICES--
1.2%
Capital One
Financial Corp..... 15,000 286,875
Dean Witter,
Discover & Co...... 15,000 611,250
-----------
898,125
-----------
FOOD, BEVERAGE &
TOBACCO--3.1%
ConAgra, Inc........ 20,000 662,500
Heinz (H. J.) Co.... 20,000 770,000
IBP, Inc............ 30,000 978,750
-----------
2,411,250
-----------
FOREST PRODUCTS--1.2%
Scott Paper Co...... 10,000 893,750
-----------
HEALTH SERVICES--7.7%
Caremark
International,
Inc. .............. 25,000 493,750
Coastal Healthcare
Group, Inc.+....... 10,000 272,500
Coram Healthcare
Corp.+............. 40,000 1,015,000
Healthsource, Inc.+. 18,200 862,225
Hillhaven Corp.+.... 25,000 662,500
Humana, Inc.+....... 25,000 640,625
Physician Corp. of
America +.......... 20,000 450,000
Tenet Healthcare.... 25,000 396,875
U.S. HealthCare,
Inc. .............. 15,000 663,750
United Healthcare
Corp. ............. 10,000 467,500
-----------
5,924,725
-----------
HOTELS & CASINOS--
3.9%
Aztar Corp.+........ 100,000 887,500
Hilton Hotels Corp.. 10,000 741,250
Mirage Resorts,
Inc.+.............. 30,000 840,000
Promus Cos., Inc.+.. 15,000 562,500
-----------
3,031,250
-----------
HOUSEHOLD PRODUCTS--
5.0%
Eastman Kodak Co.... 15,000 796,875
Maybelline, Inc..... 50,000 1,050,000
Ralston-Purina Co... 20,000 955,000
Tyco Labs, Inc...... 20,000 1,057,500
-----------
3,859,375
-----------
</TABLE>
15
<PAGE>
SUNAMERICA BLUE CHIP GROWTH FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1995 (unaudited) -- (continued)
<TABLE>
<CAPTION>
SECURITY VALUE
DESCRIPTION SHARES (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK
(CONTINUED)
INDUSTRIALS--2.0%
American Standard
Cos., Inc. ........ 20,000 $ 495,000
General Electric
Co. ............... 20,000 1,082,500
-----------
1,577,500
-----------
INSURANCE--3.0%
St. Paul Cos., Inc.. 10,000 500,000
Travelers, Inc...... 25,000 965,625
United Cos.
Financial Corp..... 25,000 875,000
-----------
2,340,625
-----------
LEISURE & TOURISM--
0.8%
Carnival Corp. ..... 25,000 584,375
-----------
MEDICAL PRODUCTS--3.7%
Beaton Dickinson &
Co. ............... 20,000 1,085,000
Perkin Elmer Corp... 25,000 728,125
Scherer (R.P.) Corp.
ADR+(1)............ 20,000 1,005,000
-----------
2,818,125
-----------
METALS & MINING--0.5%
Kennametal, Inc..... 15,000 403,125
-----------
PHARMACEUTICALS--
12.5%
ALZA Corp.+......... 20,000 425,000
Amgen, Inc.+........ 10,000 673,750
IVAX Corp........... 20,000 500,000
Lilly (Eli) & Co.... 10,000 731,250
Marion Merrell Dow,
Inc................ 10,000 247,500
Merck & Co., Inc.... 15,000 639,375
Mylan Laboratories,
Inc................ 20,000 635,000
Pfizer, Inc......... 10,000 857,500
Schering-Plough
Corp............... 15,000 1,115,625
Teva Pharmaceutical
Industries Ltd.
ADR(1)............. 20,000 602,500
Upjohn Co........... 35,000 1,251,250
Warner-Lambert Co. . 25,000 1,956,250
-----------
9,635,000
-----------
POLLUTION CONTROL--
0.5%
Browning-Ferris
Industries, Inc.... 10,000 340,000
-----------
REAL ESTATE--0.5%
Healthcare Realty
Trust.............. 20,000 395,000
-----------
SPECIALTY RETAIL--
2.9%
AnnTaylor Stores
Corp.+............. 20,000 745,000
Barnes & Noble,
Inc.+.............. 20,000 607,500
Home Depot, Inc.+... 10,000 442,500
Limited, Inc........ 20,000 462,500
-----------
2,257,500
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
SECURITY PRINCIPAL AMOUNT VALUE
DESCRIPTION (IN THOUSANDS) (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS--3.0%
AirTouch
Communications,
Inc.+.............. 20,000 $ 545,000
Ericsson (L.M.)
Telephone Co.
ADR(1)............. 15,000 927,188
Vodafone Group PLC
ADR(1)............. 25,000 828,125
-----------
2,300,313
-----------
TRANSPORTATION--0.8%
Delta Air Lines,
Inc................ 10,000 627,500
-----------
TOTAL INVESTMENT
SECURITIES--87.4%
(COST $62,546,150). 67,315,538
-----------
REPURCHASE
AGREEMENT--4.3%
Joint Repurchase
Agreement
Account (Note 5)
(cost $3,353,000).. $3,353 3,353,000
-----------
TOTAL INVESTMENTS--
(COST $65,899,150). 91.7% 70,668,538
Other assets less 8.3 6,364,120
liabilities......... ----- -----------
NET ASSETS-- 100.0% $77,032,658
===== ===========
</TABLE>
--------
+ Non-income producing security
(1) ADR ("American Depositary Receipt")
See Notes to Financial Statements
16
<PAGE>
SUNAMERICA MID-CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1995 (unaudited)
<TABLE>
<CAPTION>
SECURITY VALUE
DESCRIPTION SHARES (NOTE 4)
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK--89.9%
APPAREL & TEXTILES--2.9%
Authentic Fitness
Corp.+............. 10,500 $ 168,000
Cole (Kenneth)
Productions, Inc. . 10,000 255,000
NIKE, Inc. ......... 7,000 522,375
Warnaco Group,
Inc.+.............. 10,000 178,750
-----------
1,124,125
-----------
BANKS--1.9%
Long Islands
Bancorp, Inc. ..... 30,000 525,000
Signet Banking
Corp. ............. 10,000 203,750
-----------
728,750
-----------
BROADCASTING & MEDIA--
3.9%
British Sky
Broadcasting
ADR(1)............. 5,000 123,125
King World
Productions, Inc.+. 10,000 393,750
PolyGram N.V.
ADR(1)............. 8,000 439,000
Viacom, Inc.+....... 13,000 581,750
-----------
1,537,625
-----------
CHEMICALS--2.1%
Bush Boake Allen,
Inc.+.............. 16,700 450,900
Cabot Corp. ........ 10,000 368,750
-----------
819,650
-----------
COMMUNICATION EQUIPMENT--
1.1%
United States
Robotics Corp.+.... 7,000 437,500
-----------
COMPUTERS & BUSINESS
EQUIPMENT--7.8%
3Com Corp.+......... 5,000 283,125
ALANTEC Corp.+...... 5,000 223,750
Creative Technology
Ltd.+.............. 15,000 185,625
Daisytek
International
Corp.+............. 34,500 746,062
Innovus Corp. ...... 4,000 43,000
Micron Technology,
Inc. .............. 5,000 380,000
Oak Technology...... 22,500 669,375
Seagate Technology+. 10,000 278,750
StrataCom, Inc.+.... 5,000 215,000
-----------
3,024,687
-----------
DEPARTMENT STORES--
2.4%
Woolworth Corp. .... 50,000 918,750
-----------
ELECTRICAL EQUIP-
MENT--7.3%
Adtran, Inc.+....... 3,000 167,250
Alpha Industries,
Inc. .............. 50,000 562,500
FSI International,
Inc.+.............. 5,000 201,875
GaSonics
International
Corp.+............. 10,000 202,500
Integrated Silicon
Solution, Inc. .... 7,000 245,000
ITI Technologies,
Inc.+.............. 35,000 883,750
LSI Logic Corp.+.... 5,000 262,500
Novellus Systems,
Inc.+.............. 5,000 310,000
-----------
2,835,375
-----------
<CAPTION>
SECURITY VALUE
DESCRIPTION SHARES (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
ENERGY SERVICES--1.8%
BJ Services Co.+.... 20,000 $ 410,000
McDermott J Ray SA+. 10,000 270,000
---------
680,000
---------
ENERGY SOURCES--5.1%
Anadarko Petroleum
Corp. ............. 10,000 437,500
Apache Corp. ....... 10,000 272,500
Kerr-McGee Corp. ... 5,000 255,000
Occidental Petroleum
Corp. ............. 15,000 328,125
Pogo Producing Co. . 34,600 704,975
---------
1,998,100
---------
FINANCIAL SERVICES--
3.1%
Capital One
Financial Corp. ... 25,000 478,125
Green Point
Financial Corp. ... 15,000 346,875
Green Tree Financial
Corp. ............. 10,000 410,000
---------
1,235,000
---------
FOOD, BEVERAGE & TO-
BACCO--0.4%
Hudson Foods, Inc. . 7,500 143,438
---------
FOREST PRODUCTS--2.2%
Boise Cascade
Corp. ............. 15,000 521,250
Consolidated Papers,
Inc. .............. 7,000 348,250
---------
869,500
---------
HEALTH SERVICES--
10.9%
Coram Healthcare
Corp.+............. 30,000 761,250
Healthsource, Inc.+. 10,000 473,750
Medaphis Corp.+..... 8,000 504,000
Medpartners, Inc.... 30,000 663,750
Pacificare Health
Systems, Inc.+..... 5,000 361,250
Physicians Health
Services, Inc.+.... 20,000 650,000
Professional Sports
Care Management.... 15,000 165,000
Regency Health
Services, Inc.+.... 23,200 307,400
Wellpoint Health
Networks, Inc.+.... 10,000 350,000
---------
4,236,400
---------
HOTELS & CASINOS--
0.7%
Mirage Resorts,
Inc.+.............. 10,000 280,000
---------
HOUSEHOLD PRODUCTS--
1.0%
Ralston-Purina Co. . 8,000 382,000
---------
INSURANCE--0.9%
United Companies
Financial Co. ..... 10,000 350,000
---------
LEISURE & TOURISM--
0.9%
Carnival Corp. ..... 15,000 350,625
---------
</TABLE>
17
<PAGE>
SUNAMERICA MID-CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1995 (unaudited) -- (continued)
<TABLE>
<CAPTION>
SECURITY VALUE
DESCRIPTION SHARES (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTIN-
UED)
MEDICAL PRODUCTS--
10.1%
Becton Dickinson &
Co................. 7,000 $ 379,750
Boston Scientific
Corp.+............. 28,000 689,500
Cordis Corp.+....... 5,000 363,750
Guidant Corp. ...... 20,000 372,500
Medtronic, Inc. .... 3,000 208,125
Omnicare, Inc. ..... 7,500 393,750
Scherer (R.P.) Corp.
ADR+(1)............ 15,000 753,750
Sola International,
Inc. .............. 35,000 752,500
-----------
3,913,625
-----------
PHARMACEUTICALS--8.5%
Amgen, Inc.+........ 10,000 673,750
Genzyme Corp+....... 10,000 387,500
Mylan Laboratories,
Inc. .............. 10,000 317,500
Royce Laboratories,
Inc. .............. 85,000 722,500
Teva Pharmaceutical
Industries Ltd.
ADR(1)............. 15,000 451,875
Watson
Pharmaceuticals,
Inc.+.............. 25,000 737,500
-----------
3,290,625
-----------
POLLUTION CONTROL--
1.1%
United Waste
Systems, Inc. ..... 15,000 423,750
-----------
SOFTWARE--6.6%
C*ATS Software,
Inc. .............. 15,500 232,500
HBO & Co. .......... 3,000 130,500
Informix Corp.+..... 5,000 171,875
Macromedia, Inc.+... 10,000 337,500
Microsoft Corp.+.... 4,000 284,500
National Instruments
Corp. ............. 10,000 180,000
PC Docs Group
International,
Inc. .............. 50,000 275,000
Shared Medical
Systems, Inc. ..... 10,000 366,250
Shiva Corp.+........ 10,000 326,250
Transaction Systems
Architects, Inc. .. 12,500 260,937
-----------
2,565,312
-----------
SPECIALTY RETAIL--
3.5%
Lechters, Inc.+..... 15,000 251,250
Staples, Inc.+...... 15,000 395,625
Sunglass Hut
International,
Inc.+.............. 6,850 202,931
United States Office
Products Co. ...... 35,000 503,125
-----------
1,352,931
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
SECURITY PRINCIPAL AMOUNT VALUE
DESCRIPTION (IN THOUSANDS) (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS--
3.7%
Ericsson (L.M.)
Telephone Co.
ADR(1)............. 3,000 $ 185,438
Pairgain
Technologies,
Inc.+.............. 10,000 238,750
Picturetel Corp.+... 10,000 380,000
Tekelec, Inc.+...... 16,000 344,000
Tellabs, Inc.+...... 5,000 291,250
-----------
1,439,438
-----------
TOTAL INVESTMENT SE-
CURITIES--89.9%
(COST $30,809,336). 34,937,206
-----------
REPURCHASE AGREE-
MENT--7.1%
Joint Repurchase
Agreement
Account (Note 5)
(cost $2,766,000).. $2,766 2,766,000
-----------
TOTAL INVESTMENTS--
(COST $33,575,336). 97.0% 37,703,206
Other assets less 3.0 1,152,377
liabilities......... ----- -----------
NET ASSETS-- 100.0% $38,855,583
===== ===========
</TABLE>
--------
+ Non-income producing security
(1) ADR ("American Depositary Receipt")
See Notes to Financial Statements
18
<PAGE>
SUNAMERICA SMALL COMPANY GROWTH FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1995 (unaudited)
<TABLE>
<CAPTION>
SECURITY VALUE
DESCRIPTION SHARES (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK--84.1%
APPAREL &
TEXTILES--3.4%
Authentic Fitness
Corp.+........... 60,000 $ 960,000
Cole (Kenneth)
Productions,
Inc. ............ 18,400 469,200
Quiksilver, Inc.+. 60,000 1,297,500
Warnaco Group,
Inc.+............ 40,000 715,000
------------
3,441,700
------------
BANKS--2.3%
First American
Corp. Tennessee.. 30,000 1,005,000
Long Islands
Bancorp, Inc. ... 30,000 525,000
Peoples Bank
(Bridgeport,
Connecticut)..... 50,000 743,750
------------
2,273,750
------------
COMMUNICATION
EQUIPMENT--6.1%
Applied Voice
Technology,
Inc.+............ 50,000 1,018,750
Coherent
Communications
Systems Corp. ... 22,500 435,938
Colonial Data
Technologies
Corp.+........... 40,000 565,000
Comverse
Technology,
Inc.+............ 63,000 866,250
Incomnet, Inc. ... 50,000 718,750
Lannet Data
Communications,
Inc. ............ 35,000 647,500
QUALCOMM, Inc.+... 20,000 655,000
United States
Robotics Corp.+.. 20,000 1,250,000
------------
6,157,188
------------
COMPUTERS & BUSINESS
EQUIPMENT--7.5%
3Com Corp.+....... 15,000 849,375
ALANTEC Corp.+.... 25,000 1,118,750
Creative
Technology Ltd.+. 70,000 866,250
Daisytek
International
Corp.+........... 70,500 1,524,562
Micron Technology,
Inc. ............ 5,000 380,000
Oak Technology.... 34,000 1,011,500
Panda Project,
Inc. ............ 22,000 506,000
Seagate
Technology+...... 30,000 836,250
StrataCom, Inc.+.. 10,000 430,000
------------
7,522,687
------------
ELECTRICAL
EQUIPMENT--14.8%
Adflex Solutions,
Inc.+............ 10,000 200,000
Adtran, Inc.+..... 20,000 1,115,000
Advanced Micro
Devices, Inc.+... 25,000 846,875
AFC Cable Systems,
Inc. ............ 60,000 930,000
Alliance
Semiconductor
Corp.+........... 20,000 850,000
Alpha Industries,
Inc. ............ 105,000 1,181,250
Amphenol Corp.+... 30,000 750,000
Asyst
Technologies,
Inc.+............ 5,000 183,750
Brooks Automation,
Inc. ............ 50,000 650,000
FSI International,
Inc.+............ 15,000 605,625
GaSonics
International
Corp.+........... 26,000 526,500
Integrated Device
Technology,
Inc.+............ 20,000 740,000
Integrated Silicon
Solution, Inc. .. 33,000 1,155,000
ITI Technologies,
Inc.+............ 35,000 883,750
LSI Logic Corp.+.. 20,000 1,050,000
<CAPTION>
SECURITY VALUE
DESCRIPTION SHARES (NOTE 4)
--------------------------------------------------------------------------------
<S> <C> <C>
ELECTRICAL
EQUIPMENT
(CONTINUED)
Novellus Systems,
Inc.+............ 15,000 $ 930,000
Planar Systems,
Inc.+............ 30,000 630,000
Sierra Semi-
Conductor Corp.+. 25,000 643,750
Tencor
Instruments...... 10,000 592,500
Ultratech Stepper,
Inc.+............ 10,000 486,250
------------
14,950,250
------------
ENERGY SERVICES--
1.3%
McDermott J Ray
SA+.............. 30,000 810,000
Pride Petroleum
Services, Inc. .. 75,000 515,625
------------
1,325,625
------------
ENERGY SOURCES--
2.1%
Anadarko Petroleum
Corp. ........... 15,000 656,250
Apache Corp. ..... 20,000 545,000
Pogo Producing
Co. ............. 45,400 925,025
------------
2,126,275
------------
ENTERTAINMENT
PRODUCTS--1.7%
First Team Sports,
Inc.+............ 75,000 1,696,875
------------
FINANCIAL
SERVICES--2.1%
Bay Ridge Bancorp,
Inc. ............ 50,000 937,500
Capital One
Financial Corp. . 25,000 478,125
Green Point
Financial Corp. . 30,000 693,750
------------
2,109,375
------------
FOOD, BEVERAGE &
TOBACCO--0.9%
Hudson Foods,
Inc. ............ 45,000 860,625
------------
HEALTH SERVICES--
11.9%
Coram Healthcare
Corp.+........... 70,000 1,776,250
Evergreen
Healthcare,
Inc. ............ 37,000 457,875
FPA Medical
Management,
Inc. ............ 25,000 562,500
Homedco Group,
Inc. ............ 15,000 821,250
Medaphis Corp.+... 15,000 945,000
Medpartners,
Inc. ............ 50,000 1,106,250
PhyCor, Inc.+..... 15,000 513,750
Physicians Health
Services, Inc.+.. 30,000 975,000
Professional
Sports Care
Management....... 50,000 550,000
Regency Health
Services, Inc.+.. 16,800 222,600
Rotech Medical
Corp. ........... 20,500 640,625
Veterinary Centers
of America,
Inc. ............ 60,000 652,500
WellCare
Management,
Inc.+............ 40,000 1,370,000
Wellpoint Health
Networks, Inc.+.. 40,000 1,400,000
------------
11,993,600
------------
HOTELS & CASINOS--
4.2%
Aztar Corp.+...... 100,000 887,500
Capital Gaming
International,
Inc.+............ 85,000 446,250
Casino America,
Inc.+............ 90,000 1,125,000
La Quinta Inns,
Inc. ............ 34,925 947,341
Players
International,
Inc.+............ 30,000 847,500
------------
4,253,591
------------
HOUSEHOLD
PRODUCTS--0.5%
Maybelline, Inc. . 25,000 525,000
------------
</TABLE>
19
<PAGE>
SUNAMERICA SMALL COMPANY GROWTH FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1995 (unaudited) -- (continued)
<TABLE>
<CAPTION>
SECURITY VALUE
DESCRIPTION SHARES (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK
(CONTINUED)
MEDICAL PRODUCTS--
1.9%
Cordis Corp.+..... 10,000 $ 727,500
Perseptive
Biosystems,
Inc.+............ 30,000 202,500
Univax Biologics,
Inc.+............ 82,500 629,063
UroMed Corp.+..... 50,000 343,750
----------
1,902,813
----------
PHARMACEUTICALS--
3.4%
Pharmaceutical
Resources, Inc... 73,600 818,800
Royce
Laboratories,
Inc.............. 115,000 977,500
Teva
Pharmaceutical
Industries Ltd.
ADR(1)........... 30,000 903,750
Watson
Pharmaceuticals,
Inc.+............ 25,000 737,500
----------
3,437,550
----------
POLLUTION CONTROL--
0.8%
United Waste
Systems, Inc..... 30,000 847,500
----------
RESTAURANTS--1.5%
Apple South, Inc.. 50,000 781,250
Cheesecake
Factory, Inc.+... 40,500 769,500
----------
1,550,750
----------
SOFTWARE--9.7%
C*ATS Software,
Inc.............. 36,000 540,000
Datastream
Systems, Inc..... 11,000 222,750
Informix Corp.+... 20,000 687,500
Innovus Corp. .... 47,700 512,775
Innovus
Corp.(2)(3)...... 54,000 189,000
Macromedia, Inc.+. 20,000 675,000
National
Instruments
Corp............. 20,000 360,000
PC Docs Group
International,
Inc.............. 270,000 1,485,000
PeopleSoft, Inc.+. 10,000 442,500
Phamis, Inc.+..... 50,000 1,087,500
Sierra On-line,
Inc.+............ 30,000 660,000
Software Artistry,
Inc.............. 35,000 840,000
Tivoli Systems,
Inc.............. 33,000 1,221,000
Transaction
Systems
Architects, Inc.. 40,000 835,000
----------
9,758,025
----------
SPECIALTY RETAIL--
3.0%
Just For Feet,
Inc.+............ 30,000 753,750
Lechters, Inc.+... 60,000 1,005,000
Sunglass Hut
International,
Inc.+............ 15,000 444,375
United States
Office Products
Co............... 55,000 790,625
----------
2,993,750
----------
TELECOMMUNICATIONS--
3.9%
Pairgain
Technologies,
Inc.+............ 10,000 238,750
PCS Wireless,
Inc.............. 162,000 324,278
Picturetel Corp.+. 20,000 760,000
Summa Four, Inc.+. 10,000 242,500
TCSI Corp.+....... 82,000 922,500
</TABLE>
<TABLE>
<CAPTION>
SHARES/
SECURITY PRINCIPAL AMOUNT VALUE
DESCRIPTION (IN THOUSANDS) (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS
(CONTINUED)
Tekelec, Inc.+.... 34,000 $ 731,000
Tellabs, Inc.+.... 13,000 757,250
------------
3,976,278
------------
TRANSPORTATION--
1.1%
Fritz Companies,
Inc.+............ 17,500 1,124,375
------------
TOTAL COMMON STOCK
(COST
$73,115,543)..... 84,827,582
------------
OPTIONS--0.0%
DEPARTMENT STORES--
0.0%
Woolworth Corp.(4)
(cost $5,345).... 16,600 5,187
------------
TOTAL INVESTMENT
SECURITIES--84.1%
(COST
$73,120,888)..... 84,832,769
------------
REPURCHASE
AGREEMENT--16.2%
Joint Repurchase
Agreement
Account (Note 5)
(cost
$16,395,000)..... $16,395 16,395,000
------------
TOTAL INVESTMENTS--
(COST
$89,515,888)..... 100.3% 101,227,769
Liabilities in
excess of other
assets............ (0.3) (296,484)
------- ------------
NET ASSETS-- 100.0% $100,931,285
======= ============
</TABLE>
-------
+ Non-income producing security
(1) ADR ("American Depositary Receipt")
(2) At March 31, 1995 the Fund held a restricted security amounting to 0.2% 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>
VALUATION
DATE OF UNIT AS OF
DESCRIPTION ACQUISITION COST MARCH 31, 1995
----------- ----------- ----- --------------
<S> <C> <C> <C>
Innovus Corp. 3/21/95 $3.50 $3.50
</TABLE>
(3) Fair valued security, see Note 4
(4) See Note 13
See Notes to Financial Statements
20
<PAGE>
SUNAMERICA GLOBAL BALANCED FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK--65.3%
DOMESTIC EQUITY--13.4%
AUTOMOTIVE--0.4%
PRI Automation, Inc. . 5,000 $ 111,250
-----------
BANKS--0.6%
BankAmerica Corp. .... 2,000 96,500
Citicorp.............. 1,750 74,375
-----------
170,875
-----------
BROADCASTING & MEDIA--
0.2%
Central European Media
Entertainment Light.. 2,500 23,125
Young Broadcasting
Inc. ................ 2,000 44,500
-----------
67,625
-----------
CHEMICALS--0.6%
Dow Chemical Co. ..... 500 36,500
du Pont (E.I.) de
Nemours & Co. ....... 650 39,325
Union Carbide Corp. .. 3,000 91,875
-----------
167,700
-----------
COMMUNICATION
EQUIPMENT--0.3%
Motorola, Inc. ....... 1,700 92,862
-----------
COMPUTERS & BUSINESS
EQUIPMENT--0.9%
International Business
Machines Corp. ...... 1,600 131,000
Xerox Corp. .......... 1,000 117,375
-----------
248,375
-----------
ENERGY SERVICE--0.2%
Baker Hughes, Inc. ... 2,000 40,750
-----------
ENERGY SOURCES--1.9%
Amoco Corp. .......... 700 44,538
Atlantic Richfield
Co. ................. 1,000 115,000
Chevron Corp. ........ 1,000 48,000
Exxon Corp. .......... 1,000 66,750
Halliburton Co. ...... 1,200 43,650
Mobil Corp. .......... 1,450 134,306
Texaco, Inc. ......... 1,000 66,500
-----------
518,744
-----------
FINANCIAL SERVICES--
0.3%
Dean Witter, Discover
& Co. ............... 2,000 81,500
-----------
FOREST PRODUCTS--0.6%
Georgia-Pacific
Corp. ............... 1,000 79,750
International Paper
Co. ................. 1,000 75,125
-----------
154,875
-----------
HEALTH SERVICES--0.3%
St. Jude Medical,
Inc. ................ 1,000 43,250
United Healthcare
Corp. ............... 800 37,400
-----------
80,650
-----------
HOTELS & CASINOS--0.2%
Promus Cos., Inc.+.... 1,200 45,000
-----------
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
HOUSEHOLD PRODUCTS--
1.2%
Corning, Inc. ........ 625 $ 22,500
Eastman Kodak Co. .... 2,850 151,406
Johnson & Johnson
Co. ................. 2,500 148,750
-----------
322,656
-----------
INDUSTRIALS--0.2%
General Electric Co. . 800 43,300
-----------
INSURANCE--0.2%
Travelers, Inc. ...... 1,200 46,350
-----------
LEISURE & TOURISM--0.7%
Disney (Walt) Co. .... 3,500 186,812
-----------
MACHINERY--0.1%
Caterpillar, Inc. .... 700 38,938
-----------
MEDICAL PRODUCTS--0.5%
Becton Dickinson &
Co. ................. 1,000 54,250
Medtronic, Inc. ...... 1,000 69,375
-----------
123,625
-----------
METALS & MINING--0.3%
Phelps Dodge Corp. ... 650 36,969
Reynolds Metals Co. .. 1,000 49,250
-----------
86,219
-----------
PHARMACEUTICALS--2.1%
Lilly (Eli) & Co. .... 1,400 102,375
Merck & Co., Inc. .... 1,000 42,625
Pfizer, Inc. ......... 600 51,450
Schering-Plough
Corp. ............... 1,600 119,000
Upjohn Co. ........... 3,000 107,250
Warner-Lambert Co. ... 2,000 156,500
-----------
579,200
-----------
POLLUTION CONTROL--0.2%
Browning-Ferris
Industries, Inc. .... 2,000 68,000
-----------
SOFTWARE--0.3%
Microsoft Corp.+...... 1,000 71,125
-----------
SPECIALTY RETAIL--0.4%
Barnes & Noble, Inc.+. 2,000 60,750
Toys R Us, Inc.+...... 1,500 38,437
-----------
99,187
-----------
TELEPHONE--0.3%
Pacific Telesis Group. 3,000 90,750
-----------
TELECOMMUNICATIONS--
0.1%
AT&T Corp............. 700 36,225
-----------
UTILITIES--0.3%
Houston Industries,
Inc.................. 2,000 76,250
-----------
TOTAL DOMESTIC EQUITY
(COST $3,408,630).... 3,648,843
-----------
</TABLE>
21
<PAGE>
SUNAMERICA GLOBAL BALANCED FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1995 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK
(CONTINUED)
FOREIGN EQUITY--51.9%
AEROSPACE & MILITARY
TECHNOLOGY--1.2%
Showa Aircraft
(Japan).............. 28,000 $ 335,291
-----------
APPAREL & TEXTILES--
0.2%
Alexandra Workwear PLC
(United Kingdom)..... 15,000 28,556
Marzotto & Figli
(Italy).............. 5,000 31,296
-----------
59,852
-----------
AUTOMOTIVE--2.6%
Autoliv AB (Sweden)... 2,700 102,005
Cycle & Carriage
Bintang Bhd
(Malaysia)........... 12,000 48,834
Daikin Manufacturing
Co. (Japan).......... 30,000 535,406
SA D'Ieteren NV
(Belgium)............ 515 33,882
-----------
720,127
-----------
BANKS--3.5%
Argentaria Corp. BC SA
(Spain).............. 700 20,439
Banco Intercontinental
Espanol (Spain)...... 350 27,270
Bangkok Bank Public
Co. Ltd. (Thailand).. 1,900 16,820
Bank of Ireland PLC
(Ireland)............ 30,000 152,897
Bank of Montreal
(Canada)............. 1,250 23,899
Banque National de
Paris (France)....... 1,500 76,263
Credito Italiano SPA
(Italy).............. 40,000 37,825
Development Bank of
Singapore
(Singapore).......... 3,000 31,456
Hang Seng Bank Ltd.
(Hong Kong).......... 10,000 70,486
HSBC Holdings PLC
(Hong Kong).......... 2,800 31,596
Internationale
Nederlanden Group
(Netherlands)........ 1,000 49,246
Malayan Banking Bhd
(Malaysia)........... 5,000 33,781
National Australia
Bank Ltd.
(Australia).......... 14,000 118,215
National Westminster
Bank PLC (United
Kingdom)............. 9,000 77,186
Overseas-Chinese
Banking Corp.
(Singapore).......... 6,000 60,361
Philippine Savings
Bank (Philippines)... 550 12,529
Royal Bank of Canada
(Canada)............. 2,835 58,256
Societe Generale
(France)............. 450 52,215
-----------
950,740
-----------
CHEMICALS--0.8%
Courtaulds PLC (United
Kingdom)............. 10,000 70,479
Laporte PLC (United
Kingdom)............. 9,000 97,991
Tessenderlo Chemie SA
(Belgium)............ 145 46,563
-----------
215,033
-----------
COMMERCE--0.7%
Aokam Perdana Bhd
(Malaysia)........... 10,000 56,104
Citic Pacific Ltd.
(Hong Kong).......... 10,000 24,703
Guangdong Investment
(Hong Kong).......... 50,000 24,250
Hutchison Whampoa
(Hong Kong).......... 3,000 13,231
P.T. Tri Polyta
Indonesia ADR
(Indonesia)(1)....... 2,500 55,000
Wheelock & Co. Ltd.
(Hong Kong).......... 12,000 20,331
-----------
193,619
-----------
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
COMPUTERS & BUSINESS
EQUIPMENT--0.2%
Acma Electrical
Industries Ltd.
(Singapore).......... 8,000 $ 24,598
Videologic Group PLC
(United Kingdom)..... 43,283 30,155
-----------
54,753
-----------
CONGLOMERATE--2.1%
BTR PLC (United
Kingdom)............. 30,000 158,944
First Philippine
Holdings Corp.
(Philippines)........ 1,599 3,982
Goldfarb Corp.
(Canada)............. 3,885 46,511
Hanson PLC (United
Kingdom)............. 50,000 188,350
Sonae Investimento
(Portugal)........... 1,750 41,778
Williams Holdings PLC
(United Kingdom)..... 25,000 138,326
-----------
577,891
-----------
CONTAINERS & STORAGE--
0.2%
Kardex (Switzerland).. 257 62,406
-----------
CONSTRUCTION &
HOUSING--1.1%
Avonside Group PLC
(United Kingdom)..... 25,000 35,240
Bouygues SA (France).. 495 54,966
Countryside Properties
PLC (United Kingdom). 25,000 37,670
Hopewell Holdings
(Hong Kong).......... 42,000 29,604
Italian-Thai
Development Public
Co. Ltd. (Thailand).. 3,000 33,624
Kampa Haus AG
(Germany)............ 130 67,810
Sheffield Insulations
Group PLC (United
Kingdom)............. 12,000 47,245
-----------
306,159
-----------
CONSTRUCTION
MATERIALS--2.6%
Grafton Group PLC
(Ireland)............ 10,000 62,814
Kawasho Lease System
Corp. (Japan)........ 22,000 392,631
Marley PLC (United
Kingdom)............. 60,000 124,433
Plettac AG (Germany).. 150 85,543
Siam City Cement
(Thailand)........... 800 12,670
Southeast Asia Cement
(Philippines)........ 400,000 32,124
-----------
710,215
-----------
DURABLES--0.4%
Hunter Douglas NV
(Netherlands)........ 1,400 60,791
Zodiac SA (France).... 400 45,747
-----------
106,538
-----------
ELECTRICAL EQUIPMENT--
1.0%
Goldstar Co. GDS
(Korea, Republic
Of)(3)............... 2,000 27,000
Inaba Denkisangyo Co.
(Japan).............. 6,600 158,066
Pressac Holdings PLC
(United Kingdom)..... 30,000 53,467
Samsung Electronics
LTD GDR (Korea,
Republic Of)(2)...... 540 23,625
-----------
262,158
-----------
ENERGY SERVICES--0.5%
Elan Energy, Inc.
(Canada)............. 14,175 102,582
Schlumberger Ltd. ADR
(France)(1).......... 700 41,738
-----------
144,320
-----------
</TABLE>
22
<PAGE>
SUNAMERICA GLOBAL BALANCED FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1995 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK
(CONTINUED)
ENERGY SOURCES--0.4%
Petron Corp.
(Philippines)........ 36,000 $ 25,715
Total Co. Francaise
Petrole (France)..... 1,500 89,457
-----------
115,172
-----------
ENGINEERING--1.2%
Boskalis Westminster
(Netherlands)........ 2,000 26,662
Chevalier
International (Hong
Kong)................ 556,000 85,572
Hoganasgruppen AB
(Sweden)............. 5,100 78,038
Siebe PLC (United
Kingdom)............. 12,000 106,837
Virginia Technologies
AG (Austria)......... 250 25,236
Wing Fai International
(Hong Kong).......... 100,000 7,113
-----------
329,458
-----------
ENVIRONMENTAL--0.5%
BWT AG (Austria)...... 200 27,296
Eaux (cie Generale)
(France)............. 500 50,780
Lyonnaise des Eaux
(France)............. 500 46,288
-----------
124,364
-----------
FINANCIAL SERVICES--
3.6%
Credit Foncier de
France (France)...... 500 56,249
Dhana Siam Finance &
Securities Co., Ltd.
(Thailand)........... 3,600 17,543
Japan Cash Machine Co.
Ltd. (Japan)......... 13,200 296,373
Nichiei Co. Ltd.
(Japan).............. 5,000 293,610
Nikko Securities
(Japan).............. 30,000 262,522
Phatra Thanakit Co.
(Thailand)........... 5,000 32,690
Rashid Hussain Bhd
(Malaysia)........... 11,000 29,553
-----------
988,540
-----------
FOOD & BEVERAGES--0.9%
Cafe de Coral Holdings
Ltd. (Hong Kong)..... 160,000 38,903
Seita (France)........ 2,400 66,426
Sunbeam Victa Holdings
Ltd. (Australia)..... 50,000 36,649
Whitbread PLC (United
Kingdom)............. 12,000 107,129
-----------
249,107
-----------
FOREST PRODUCTS--1.8%
Abitibi-Price, Inc.
(Canada)............. 5,180 54,147
DBS Land (Singapore).. 24,000 63,932
Land & General Bhd
(Malaysia)........... 11,000 33,683
Land & General Bhd A
(Malaysia)........... 5,500 16,841
Macfarlane Group PLC
(United Kingdom)..... 15,000 57,842
Smurfit (Jefferson)
(Ireland)............ 20,000 118,276
Waddington (John) PLC
(United Kingdom)..... 45,000 140,716
-----------
485,437
-----------
HOTELS & CASINOS--1.3%
Genting Bhd
(Malaysia)........... 7,500 67,562
Manchester United PLC
(United Kingdom)..... 25,000 53,872
Stanley Leisure PLC
(United Kingdom)..... 10,000 62,541
Thorn EMI PLC (United
Kingdom)............. 10,000 177,252
-----------
361,227
-----------
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
HOUSEHOLD PRODUCTS--
4.1%
America Group
(Finland)............ 2,000 $ 33,983
Bluebird Toys PLC
(United Kingdom)..... 19,000 69,880
Hanjaya Mandala
Sampoerna
(Indonesia).......... 3,750 19,856
Hokubu Communication &
Industrial (Japan)... 15,000 264,249
Ostasiatiske Kompagni
(Denmark)............ 1,235 33,323
Philips Electronics NV
(Netherlands)........ 7,200 244,147
Salomon SA (France)... 100 40,133
Strafor-Facom SA
(France)............. 600 77,604
Tabaiespec Corp.
(Japan).............. 20,000 246,402
Walker Greenbank PLC
(United Kingdom)..... 48,000 82,826
-----------
1,112,403
-----------
INSURANCE--1.0%
Legal & General Group
PLC (United Kingdom). 20,000 153,273
Malaysian Assurance
Alliance Bhd
(Malaysia)........... 10,000 32,793
RAS SpA (Italy)....... 4,000 35,733
Zurich Versicherunga
(Switzerland)........ 55 56,190
-----------
277,989
-----------
LEISURE & TOURISM--0.4%
Airtours PLC (United
Kingdom)............. 17,000 117,061
-----------
MACHINERY--3.4%
Chuo Kagaku Co. Ltd.
(Japan).............. 7,000 161,198
Kaji Technology Corp.
(Japan).............. 27,000 137,720
Sankyo Engineering Co.
(Japan).............. 17,000 518,710
Sasib (Italy)......... 7,000 28,387
Siemens AG (Germany).. 160 75,263
-----------
921,278
-----------
MANUFACTURING--0.1%
Interform Ceramics
Technologies Ltd.
(Hong Kong).......... 320,000 16,762
-----------
MEDICAL PRODUCTS--1.4%
Guidant Corp. (India). 1,000 18,625
Kanto Biomedical
Laboratory (Japan)... 18,000 279,793
Spectral Diagnostics,
Inc. (Canada)........ 2,930 75,391
-----------
373,809
-----------
METALS & MINING--5.5%
Banpu Public Co. Ltd.
(Thailand)........... 1,000 18,355
Barrick Gold Corp.
(Canada)............. 2,950 73,270
Broken Hill
Proprietary Co. Ltd.
ADR
(Australia)(1)....... 10,000 131,056
Clutha Ltd.
(Australia).......... 120,000 12,314
DSM NV (Netherlands).. 500 38,342
Email Ltd.
(Australia).......... 24,000 58,931
Fischer (Georg) AG
(Switzerland)........ 100 114,790
Hoogovens en
Staalfabriken
(Netherlands)........ 1,000 39,669
</TABLE>
23
<PAGE>
SUNAMERICA GLOBAL BALANCED FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1995 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK
(CONTINUED)
METALS & MINING
(CONTINUED)
Noranda, Inc.
(Canada)............. 3,080 $ 52,559
Pasminco Ltd.
(Australia).......... 50,000 52,042
PTT Exploration &
Production
(Thailand)........... 3,000 27,533
Stelco, Inc. (Canada). 10,000 53,606
Tokai Steel Works Ltd.
(Japan).............. 150,000 417,962
Tokyo Tekko Co.
(Japan).............. 40,000 327,001
Western Mining
Holdings ADS
(Australia)(4)....... 15,000 75,533
-----------
1,492,963
-----------
PHARMACEUTICALS--1.0%
Astra AB (Sweden)..... 3,300 87,584
Roche Holdings AG
(Switzerland)........ 20 115,497
SmithKline Beecham PLC
ADS (United
Kingdom)(4).......... 10,000 77,608
-----------
280,689
-----------
REAL ESTATE--0.7%
Cheung Kong (Holdings)
Ltd. (Hong Kong)..... 20,000 87,170
Hang Lung Development
Co. (Hong Kong)...... 50,000 76,306
Land & Houses Public
Co. Ltd.
(Thailand)........... 800 13,645
-----------
177,121
-----------
SPECIALTY RETAIL--3.9%
Boots Co. PLC (United
Kingdom)............. 8,000 65,716
Castorama Dubois
Investisse (France).. 350 57,278
Douglas Holding AG
(Germany)............ 200 66,691
Kaufhof Holding AG
(Germany)............ 240 79,157
Mini Stop Co. Ltd.
(Japan).............. 11,000 240,645
Modelo Sociedade
Gestora de
Participacoes Sociais
SA (Portugal)........ 1,000 31,325
Next PLC (United
Kingdom)............. 17,000 80,428
Pinault-Printemps SA
(France)............. 300 70,306
Royal Ltd. (Japan).... 12,000 377,202
-----------
1,068,748
-----------
TELECOMMUNICATIONS--
2.0%
Advanced Information
Service PLC Ltd.
(Thailand)........... 2,400 33,137
BCE, Inc. (Canada).... 1,400 43,278
BNB Resources PLC
(United Kingdom)..... 20,000 49,255
Cable & Wireless PLC
(United Kingdom)..... 15,000 93,811
Ericsson (L.M.)
Telephone Co. ADR
(Brazil)(1).......... 1,600 98,900
Hong Kong
Telecommunications
Ltd. (Hong Kong)..... 25,000 48,661
P.T. Indonesian
Satellite Corp. ADR
(Indonesia)(1)....... 1,000 35,250
Philippine Long
Distance Telephone
Co. (Philippines).... 170 10,108
</TABLE>
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
DESCRIPTION RIGHTS/WARRANTS (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS
(CONTINUED)
SIP (Italy)........... 15,000 $ 27,946
United Communication
Industry PLC
(Thailand)........... 1,000 13,645
Vodafone Group PLC ADR
(United Kingdom)(1).. 2,500 82,812
-----------
536,803
-----------
TRANSPORTATION--0.7%
Brambles Industries
Ltd. (Australia)..... 8,500 78,751
KLM (Netherlands)..... 1,700 49,945
Nedlloyd Groep NV
(Netherlands)........ 1,300 36,427
TNT Ltd. (Australia).. 30,000 39,141
-----------
204,264
-----------
UTILITIES--0.9%
Electric & Eltek
International (Hong
Kong)................ 40,000 53,600
Electric Reunidas de
Zaragoza (Spain)..... 1,000 18,056
Hong Kong Electric
Holdings Ltd.
(Hong Kong).......... 12,000 38,412
Scottish Power PLC
(United Kingdom)..... 12,000 62,189
VEBA AG (Germany)..... 220 79,513
-----------
251,770
-----------
TOTAL FOREIGN EQUITY
(COST $15,701,708)... 14,184,067
-----------
TOTAL COMMON STOCK
(COST $19,110,338)... 17,832,910
-----------
PREFERRED STOCK--0.8%
ELECTRICAL EQUIPMENT--
0.3%
Nokia Corp. (Finland). 550 80,103
-----------
AUTOMOTIVE--0.1%
Fiat SpA (Italy)...... 15 36,409
-----------
HOUSEHOLD PRODUCTS--
0.4%
Friedrich Grohe
(Germany)............ 300 96,985
-----------
TOTAL PREFERRED STOCK
(cost $166,526)...... 213,497
-----------
RIGHTS--0.0%+
CONSTRUCTION &
HOUSING--0.0%
Marley PLC (United
Kingdom).............
(cost $0)............. 10 2,430
-----------
WARRANTS--0.0%+
ENGINEERING--0.0%
Chevalier
International
Holdings Ltd.
(Bermuda)............ 111 2,013
Wing Fai International
(Hong Kong).......... 20 298
-----------
TOTAL WARRANTS
(COST $0)............ 2,311
-----------
</TABLE>
24
<PAGE>
SUNAMERICA GLOBAL BALANCED FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1995 (unaudited) -- (continued)
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL AMOUNT
(DENOMINATED IN
SECURITY LOCAL CURRENCY) VALUE
DESCRIPTION (IN THOUSANDS) (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
FOREIGN BONDS &
NOTES--16.7%
CANADA--3.4%
Government of
Canada
6.50% due 6/01/04... 1,500 $ 931,133
-----------
DENMARK--1.4%
Government of the
Kingdom of Denmark
9.00% due 11/15/00.. 2,000 373,055
-----------
FRANCE--3.5%
Government of France
8.25% due 2/27/04... 4,000 851,736
8.50% due 4/25/03... 500 108,027
-----------
959,763
-----------
GERMANY--1.7%
Federal Republic of
Germany
9.00% due 10/20/00.. 500 400,472
Treuhandanstalt
6.13% due 6/25/98... 100 72,844
-----------
473,316
-----------
JAPAN--2.0%
Government of Japan
6.60% due 6/20/01... 40,000 542,499
-----------
NETHERLANDS--2.3%
Dutch Government
6.50% due 4/15/03... 1,000 622,209
-----------
UNITED KINGDOM--2.4%
United Kingdom
Treasury
9.00% due 3/30/00... 400 662,467
-----------
TOTAL FOREIGN BONDS &
NOTES
(COST $4,199,569).. 4,564,442
-----------
U.S. TREASURY NOTES--
7.5%
6.88% due 7/31/99... 500 496,095
7.88% due 11/15/04.. 1,500 1,564,680
-----------
TOTAL U.S. TREASURY
NOTES
(COST $2,014,922).. 2,060,775
-----------
OPTIONS--0.1%
Government of Japan
4.1%(5)
(cost $2,639)....... 500,000 24,640
-----------
TOTAL INVESTMENT
SECURITIES--90.4%
(COST $25,493,994). 24,701,005
-----------
SHORT-TERM
SECURITIES--6.4%
Cayman Island Time
Deposit
4.50% due 4/03/95.. 703 703,000
State Street Bank
Time Deposit
6.19% due 4/03/95.. 1,047 1,047,000
-----------
TOTAL SHORT-TERM
SECURITIES
(COST $1,750,000).. 1,750,000
-----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY PRINCIPAL AMOUNT VALUE
DESCRIPTION (IN THOUSANDS) (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT--
2.7%
Joint Repurchase
Agreement
Account (Note 5)
(cost $745,000)...... $ 745 $ 745,000
-----------
TOTAL INVESTMENTS--
(COST $27,986,355)... 99.5% 27,196,005
Total Written Call
Options(5)........... 0.0 (23,028)
Other assets less
liabilities........... 0.5 143,426
------- -----------
NET ASSETS-- 100.0% $27,316,403
======= ===========
</TABLE>
--------
+ Non-income producing securities
(1) ADR ("American Depositary Receipt")
(2) GDR ("Global Depositary Receipt")
(3) GDS ("Global Depositary Shares")
(4) ADS ("American Depositary Shares")
(5) See Note 13
(6) Allocation of net assets by currency as of March 31, 1995
<TABLE>
<S> <C>
U.S. Dollar 22.5%
Japanese Yen 21.2
British Pound 12.7
French Franc 6.4
Canadian Dollar 5.7
Netherlands Guilder 4.3
German Mark 3.8
Hong Kong Dollar 2.3
Australian Dollar 2.2
Danish Kroner 1.5
Swiss Franc 1.3
Malaysian Ringgit 1.2
Swedish Krona 0.9
Irish Pound 0.8
Thailand 0.8
Italian Lira 0.7
Singapore Dollar 0.7
Belgian Franc 0.5
Finish Markka 0.4
Philippines Peso 0.3
Portuguese Escudo 0.3
Austrian Shilling 0.2
Spanish Peseta 0.2
Indonesian Rupiah 0.2
</TABLE>
See Note to Financial Statements
25
<PAGE>
SUNAMERICA GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK--57.4%
BANKS--1.3%
Morgan (J.P.) & Co.,
Inc. ............... 1,000 $ 61,000
----------
BROADCASTING & MEDIA--
3.4%
Time Warner, Inc. ... 2,000 75,500
Videotron Holdings
PLC ADR+(1)......... 5,000 87,500
----------
163,000
----------
BUSINESS SERVICES--
0.6%
Darling
International,
Inc.+............... 2,000 28,250
----------
CHEMICALS--2.6%
du Pont (E.I.) de
Nemours & Co. ...... 1,000 60,500
Goodrich (B.F.) Co. . 1,500 66,563
----------
127,063
----------
COMMUNICATION
EQUIPMENT--2.8%
Motorola, Inc. ...... 2,500 136,562
----------
COMPUTERS & BUSINESS
EQUIPMENT--1.1%
COMPAQ Computer
Corp.+.............. 1,500 51,750
----------
DEPARTMENT STORES--
1.5%
Sears Roebuck & Co. . 1,000 53,375
Woolworth Corp. ..... 1,000 18,375
----------
71,750
----------
ELECTRIC UTILITIES--
4.8%
Baltimore Gas &
Electric Co.+....... 3,000 70,875
FPL Group, Inc. ..... 2,000 72,750
General Public
Utilities Corp. .... 3,000 87,375
----------
231,000
----------
ENERGY SERVICES--0.4%
Tatham Offshore,
Inc.+............... 3,000 19,500
----------
ENERGY SOURCES--3.9%
Royal Dutch Petroleum
Co. ADR(1).......... 1,000 120,000
Texaco, Inc. ........ 1,000 66,500
----------
186,500
----------
FOOD, BEVERAGE &
TOBACCO--4.3%
Heinz (H. J.) Co. ... 2,000 77,000
Philip Morris Cos.,
Inc. ............... 1,000 65,250
Quaker Oats Co. ..... 2,000 66,250
----------
208,500
----------
FOREST PRODUCTS--3.2%
Fort Howard Corp.+... 5,000 63,125
Stone Container
Corp.+.............. 4,000 91,500
----------
154,625
----------
HEALTH SERVICES--1.1%
OrNda Healthcorp+.... 3,000 51,375
----------
HOTELS & CASINOS--5.2%
Aztar Corp.+......... 5,000 44,375
Capital Gaming
International,
Inc.+............... 25,000 131,250
Promus Cos., Inc.+... 2,000 75,000
----------
250,625
----------
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 4)
-------------------------------------------------------------------------------
<S> <C> <C>
HOUSEHOLD PRODUCTS--
1.9%
Duracell
International,
Inc. ............... 1,500 $ 67,125
Eastman Kodak Co. ... 500 26,563
----------
93,688
----------
MEDICAL PRODUCTS--1.0%
Scherer (R.P.)
Corp.+.............. 1,000 50,250
----------
PHARMACEUTICALS--4.4%
Bristol-Myers Squibb
Co. ................ 1,500 94,500
Lilly (Eli) & Co. ... 750 54,844
Merck & Co., Inc. ... 1,500 63,937
----------
213,281
----------
PUBLISHING--0.5%
Western Publishing
Group, Inc.+........ 3,000 25,500
----------
REAL ESTATE--2.0%
Carr Realty Corp. ... 3,000 52,125
Federal Realty
Investment Trust.... 2,000 42,500
----------
94,625
----------
SPECIALTY RETAIL--2.5%
Barnes & Noble,
Inc.+............... 2,000 60,750
Toys R Us, Inc.+..... 1,000 25,625
Wickes Lumber Co.+... 2,500 33,750
----------
120,125
----------
TELECOMMUNICATIONS--
1.6%
AT&T Corp. .......... 1,500 77,625
----------
TELEPHONE--7.3%
Bell Atlantic Corp. . 1,500 79,125
BellSouth Corp. ..... 1,500 89,250
GTE Corp. ........... 2,000 66,500
Pacific Telesis
Group............... 2,000 60,500
US West, Inc. ....... 1,500 60,000
----------
355,375
----------
TOTAL COMMON STOCK
(COST $2,633,626)... 2,771,969
----------
PREFERRED STOCK--5.8%
BANKS--3.8%
BankAmerica Corp..... 2,000 54,750
Citicorp............. 2,000 51,000
Wells Fargo & Co..... 3,000 76,875
----------
182,625
----------
FOREST PRODUCTS--1.0%
James River Corp. ... 2,000 47,000
----------
RESTAURANTS--1.0%
McDonald's Corp...... 2,000 50,500
----------
TOTAL PREFERRED STOCK
(COST $282,885)..... 280,125
----------
</TABLE>
26
<PAGE>
SUNAMERICA GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1995 (unaudited) -- (continued)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY AMOUNT VALUE
DESCRIPTION (IN THOUSANDS) (NOTE 4)
--------------------------------------------------------------------------------
<S> <C> <C>
BONDS & NOTES--7.1%
CHEMICALS--5.0%
Georgia Gulf Corp.
15.00% due 4/15/00..... $ 150 $ 150,187
Harris Chemical North
America, Inc.
10.75% due 10/15/03.... 95 90,250
----------
240,437
----------
FOREST PRODUCTS--1.1%
Stone Container Corp.
11.88% due 12/01/98.... 50 52,875
----------
SPECIALTY RETAIL--1.0%
Eckerd Corp.
11.13% due 5/01/01..... 50 50,250
----------
TOTAL BONDS & NOTES
(COST $341,300)........ 343,562
----------
TOTAL INVESTMENT
SECURITIES--70.3%
(COST $3,257,811)...... 3,395,656
----------
SHORT-TERM SECURITIES--
20.7%
Caymen Island Time
Deposit with Mitsubishi
Bank 6.25% due 4/3/95
(cost $1,000,000)...... 1,000 1,000,000
----------
REPURCHASE AGREEMENT--
0.7%
Joint Repurchase
Agreement
Account (Note 5)
(cost $35,000)......... 35 35,000
----------
TOTAL INVESTMENTS--
(COST $4,292,811)...... 91.7% 4,430,656
Other assets less
liabilities............. 8.3 399,224
------ ----------
NET ASSETS-- 100.0% $4,829,880
====== ==========
</TABLE>
--------
+ Non-income producing security
(1) ADR ("American Depositary Receipt")
See Notes to Financial Statements
27
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1995 (unaudited)
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, with 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 strategies. 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") (formerly
SunAmerica Value Fund), SunAmerica Mid-Cap Growth Fund ("Mid-Cap Growth
Fund") (formerly SunAmerica Growth Fund), SunAmerica Small Company Growth
Fund ("Small Company Growth Fund") (formerly SunAmerica Emerging 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 B shares are subject to higher distribution fee rates.
Note 2. Reorganization
On March 31, 1993 and September 23, 1993, the Board of Directors/Trustees
and Shareholders, respectively, of the SunAmerica Mutual Funds approved the
Agreements and Plans of Reorganization dated March 13, 1993, whereby all of
the assets and liabilities of the determined Funds were transferred in a
tax-free reorganization for shares of the series of Equity Funds.
Prior to the Reorganization, the Trust was known as the SunAmerica Equity
Portfolios and consisted of two series, SunAmerica Growth Portfolio and
SunAmerica Aggressive Growth Portfolio. Upon consummation of the
reorganization, the SunAmerica Growth Portfolio and SunAmerica Aggressive
Growth Portfolio were renamed SunAmerica Growth Fund ("Growth Fund") and
SunAmerica Emerging Growth Fund ("Emerging Growth Fund"). The SunAmerica
Capital Appreciation Fund and SunAmerica Balanced Assets Fund (portfolio of
SunAmerica Fund Group) ("SABAF") were reorganized into the two new series
of Equity Funds created, SunAmerica Value Fund and Balanced Assets Fund,
respectively. The SunAmerica Emerging Growth Fund portfolio of SunAmerica
Fund Group ("SAEGF") and the SunAmerica Total Return Fund portfolio of
SunAmerica Multi-Asset
28
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1995 (unaudited) -- (continued)
Portfolios, Inc. ("SATRF") were reorganized into the Emerging Growth Fund
and the Balanced Assets Fund, respectively. The Trust also changed its
fiscal year end from November 30 to September 30.
Note 3. Acquisition
On June 18, 1991, SAAMCo and SunAmerica Capital Services, Inc. ("SACS"),
indirect wholly-owned subsidiaries of SunAmerica Inc. completed the
acquisition of certain assets related to the mutual fund business of Siebel
Capital Management, Incorporated, Equitec Securities Corporation, and their
parent corporation, Equitec Financial Group, Inc. (the "transaction").
At the time of the transaction, the Fund Group changed its name from
Equitec Siebel Fund Group to SunAmerica Fund Group and each of the
individual series of the Fund group changed its name including SABAF and
SAEGF, which were previously known as Equitec Siebel Total Return Fund and
Equitec Siebel Aggressive Growth Fund, respectively. Additionally, SATRF
acquired all of the assets and liabilities of Equity Income Fund ("EFG-
EI"); series of Equitec Siebel Fund Group II, pursuant to an agreement and
plan of reorganization approved by the shareholders of EFG-EI on June 17,
1991.
Note 4. 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 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
29
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1995 (unaudited) -- (continued)
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 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 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).
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 period ended March 31, 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.
30
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1995 (unaudited) -- (continued)
At March 31, 1995, Balanced Assets Fund loaned securities having a value of
$5,101,550 and received cash collateral of $5,143,750 for these loans.
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 the other assets and
liabilities and change in unrealized foreign exchange gains and losses on
other assets and liabilities include realized foreign exchange gains and
losses from currency gains or losses realized 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.
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 their taxable net income to
their shareholders. Therefore, no federal income tax or excise tax
provisions are required.
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 the 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 and each Fund. These costs are being amortized on a straight line
basis by the classes over the period not to exceed 12 months from the date
the classes commenced operations.
31
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1995 (unaudited) -- (continued)
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: During the prior year, the Funds adopted
Statement of Position 93-2 Determination, Disclosure, and Financial
Statement Presentation of Income, Capital Gain, and Return of Capital
Distributions by Investment Companies. Accordingly, permanent book-tax
differences relating to shareholder distribution have been reclassified to
paid-in-capital. Net investment income/loss, net realized gain/loss, and
net assets were not affected by this change. The following table discloses
the cumulative effect of such differences reclassified from undistributed
accumulated net investment income/loss and accumulated undistributed net
realized gain/loss on investments to paid-in-capital.
<TABLE>
<CAPTION>
ACCUMULATED ACCUMULATED
UNDISTRIBUTED UNDISTRIBUTED PAID
NET REALIZED NET INVESTMENT IN
GAIN/LOSS INCOME/LOSS CAPITAL
------------- -------------- -----------
<S> <C> <C> <C>
Balanced Assets Fund............... $ 642,773 $1,919,716 $(2,562,489)
Blue Chip Growth Fund.............. (121,390) 1,240,732 (1,119,342)
Mid-Cap Growth Fund................ (252,826) 271,165 (18,339)
Small Company Growth Fund.......... (26,629) 1,396,080 (1,369,451)
Global Balanced Fund............... 0 0 0
Growth and Income Fund............. 0 0 0
</TABLE>
Note 5. Joint Repurchase Agreement Account
As of March 31, 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 4.5%, 2.1%, 1.7%, 10.4%, 0.5% and 0.0% undivided
interest, respectively, which represented $7,170,000, $3,353,000,
$2,766,000, $16,395,000, $745,000 and $35,000, respectively, in principal
amount in a repurchase agreement in the joint account. As of such date,
cash repurchase agreement in the joint account and the collateral therefore
was as follows:
Yamaichi International (America), Inc. Repurchase Agreement, 6.25% dated
3/31/95, in the principal amount of $158,263,000 repurchase price
$158,345,429 due 4/03/95 collateralized by $10,475,000 U.S. Treasury Notes
6.75% due 5/31/99, $29,045,000 U.S. Treasury Notes 8.50% due 5/15/97,
$50,000,000 U.S. Treasury Notes 7.50% due 12/31/96, $50,000,000 U.S.
Treasury Notes 4.25% due 5/15/96, $16,530,000 U.S. Treasury Notes 8.50% due
5/15/97, and $925,000 U.S. Treasury Notes 8.50% due 4/15/97, approximate
aggregate value $161,235,774.
Note 6. 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, 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
32
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1995 (unaudited) -- (continued)
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 six months ended March 31, 1995, SAAMCo earned fees of
$861,115, $279,699, $137,284, $342,339, $141,789 and $14,684 for Balanced
Assets Fund, Blue Chip Growth Fund, Mid-Cap Growth Fund, Small Company
Growth Fund, Global Balanced Fund and Growth and Income Fund (of which
SAAMCo agreed to waive $14,684 for Growth and Income Fund.) 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 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 the Global Balanced Fund
actually managed by GSAM computed 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 six
months ended March 31, 1995, SAAMCo paid AIGAM and GSAM fees of $40,092 and
$15,902, 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 six months ended March 31, 1995, no such
reimbursement was required.
As of March 31, 1995, SAAMCo has agreed to voluntarily waive fees and
reimburse expenses of $8,998, $10,554, $18,780 and $20,013 for Blue Chip
Growth Fund (Class A), Mid-Cap Growth Fund (Class B), Global Balanced Fund
(Class A) and Global Balanced Fund (Class B), respectively, related to
registration and transfer agent fees.
As of March 31, 1995, SAAMCo has agreed to voluntarily reimburse expenses
of $34,925 and $24,621 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 SACS.
Each Fund has adopted a Distribution Plan (the "Plan") in accordance with
the provisions of Rule 12b-1 under the 1940 Act.
33
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1995 (unaudited) -- (continued)
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, respectively, 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 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 of
up to 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 six
months ended March 31, 1995, SACS earned fees of $980,008, $362,798,
$81,020, $322,181, $96,421 and $8,977 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.
For the six months ended March 31, 1995, SACS has advised the following
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............... $165,788 $122,791 $19,507
Blue Chip Growth Fund.............. 13,683 10,831 708
Mid-Cap Growth Fund................ 27,167 19,393 3,420
Small Company Growth Fund.......... 175,106 71,892 77,802
Global Balanced Fund............... 99,814 73,337 15,523
Growth and Income Fund............. 5,942 5,049 1
</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 six months ended March
34
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1995 (unaudited) -- (continued)
31, 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 $205,948, $56,509,
$26,521, $65,161, $16,287 and $617, 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
six months ended March 31, 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 $44,590, $163,702, $1,663, $55,560, $23,797, $2,831,
$32,678, $39,570, $11,114, $10,628, $1,848 and $469, respectively, to
reimburse SAFS pursuant to the terms of the Service Agreement. Of these
amounts, $9,989, $34,165, $585, $12,935, $5,914, $830, $8,077, $9,721,
$2,555, $2,580, $676 and $188, respectively, were payable to SAFS at March
31, 1995.
Note 7. 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 six months ended March 31, 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..... $166,009,863 $88,147,685 $83,325,819 $156,904,088 $15,912,690 $4,509,737
------------ ----------- ----------- ------------ ----------- ----------
Aggregate sales......... $167,532,386 $95,686,099 $84,128,851 $155,578,534 $12,077,375 $4,165,845
============ =========== =========== ============ =========== ==========
</TABLE>
Note 8. Portfolio Securities
The cost of securities and the aggregate appreciation and depreciation of
securities at March 31, 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.................... $234,309,162 $65,899,150 $33,575,336 $89,515,888 $27,988,994 $4,292,811
============ =========== =========== =========== =========== ==========
Appreciation............ $ 12,132,448 $ 5,213,518 $ 4,250,887 $12,064,617 $ 1,293,325 $ 191,791
Depreciation............ (4,578,754) (444,130) (123,017) (352,736) (2,086,314) (53,946)
------------ ----------- ----------- ----------- ----------- ----------
Unrealized appreciation/
depreciation--net...... $ 7,553,694 $ 4,769,388 $ 4,127,870 $11,711,881 $ (792,989) $ 137,845
============ =========== =========== =========== =========== ==========
</TABLE>
35
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1995 (unaudited) -- (continued)
Note 9. Open Forward Currency Contract
At March 31, 1995, the Global Balanced Fund had outstanding forward foreign
currency exchange contracts ("forward contracts") as a hedge against
changes in future foreign exchange rates. 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 March 31,
1995:
<TABLE>
<CAPTION>
GROSS
CONTRACT IN DELIVERY UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
---------------- ---------------- -------- ------------
<S> <C> <C> <C>
AUD 535,000 NZD 636,463 4/13/95 $ 25,003
CAD 578,000 DEM 602,305 8/14/95 29,998
CHF 453,502 CAD 508,000 8/14/95 6,943
DEM 610,000 CHF 517,036 5/24/95 14,361
DEM 610,000 CHF 515,084 5/24/95 12,630
DEM 570,000 FRF 2,055,534 6/09/95 10,772
ESP 52,600,270 DEM 590,000 6/01/95 16,570
GBP 256,288 DEM 590,000 4/03/95 13,455
ITL 679,872,000 DEM 690,000 6/01/95 40,680
NOK 2,730,238 FIM 1,920,000 5/16/95 621
SEK 2,938,260 DEM 581,488 6/06/95 27,684
USD 399,033 AUD 540,000 4/18/95 1,134
USD 1,263 CAD 1,800 7/11/95 16
USD 390,139 CHF 153,502 8/14/95 14,560
USD 419,723 DEM 581,967 5/24/95 4,056
USD 406,755 DEM 565,390 6/07/95 5,204
USD 410,000 JPY 36,767,775 9/11/95 22,448
USD 397,845 AUD 540,000 4/18/95 4,347
USD 699,564 AUD 951,477 4/24/95 11,815
USD 529,050 GBP 340,413 5/09/95 6,762
USD 398,737 CAD 568,120 7/11/95 1,263
USD 401,625 AUD 535,000 4/13/95 3,050
--------
$273,372
--------
</TABLE>
36
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1995 (unaudited) -- (continued)
<TABLE>
<CAPTION>
GROSS
CONTRACT IN DELIVERY UNREALIZED
TO DELIVER EXCHANGE FOR DATE DEPRECIATION
---------------- ----------------- -------- ------------
<S> <C> <C> <C>
CAD 416,599 USD 291,455 4/20/95 $ (5,981)
CAD 580,109 USD 410,000 8/14/95 (1,720)
CAD 891,389 USD 68,491 4/20/95 (7,928)
CHF 481,422 DEM 577,245 5/24/95 (6,627)
CHF 550,698 USD 471,085 5/24/94 (17,323)
DEM 2,000,000 USD 1,440,715 6/12/95 (16,852)
DEM 1,214,770 USD 840,189 6/07/95 (44,928)
DEM 2,938,260 SEK 575,994 6/06/95 (23,682)
DEM 596,738 GBP 256,288 4/03/95 (18,351)
DEM 563,727 ITL 679,872,000 6/01/95 (14,258)
DEM 590,000 ESP 52,541,860 6/01/95 (17,029)
DEM 603,172 CAD 578,000 8/14/95 (30,631)
DKK 2,086,000 USD 370,449 6/13/95 (11,545)
ESP 113,260 USD 855 5/16/95 (37)
FIM 1,920,000 NOK 2,731,238 5/16/95 (427)
FRF 529,465 USD 102,883 5/31/95 (6,908)
FRF 4,067,560 USD 824,528 5/31/95 (18,927)
FRF 2,041,227 DEM 570,000 6/09/95 (7,806)
GBP 399,590 USD 628,955 5/09/95 (17,957)
GBP 24,877 USD 39,360 5/09/95 (914)
JPY 45,020,835 USD 499,122 5/15/95 (22,254)
JPY 100,000,000 USD 1,106,684 6/12/95 (55,316)
JPY 36,002,100 USD 410,000 9/11/95 (13,443)
NLG 985,494 USD 574,297 4/24/95 (64,034)
NZD 210,951 AUD 170,333 4/13/95 (7,545)
NZD 422,293 AUD 356,661 4/13/95 (15,347)
USD 243,928 ESP 31,566,781 5/16/95 (5,725)
USD 406,890 AUD 550,000 4/18/95 (3,020)
USD 292,407 CAD 417,060 4/30/95 (629)
---------
(457,144)
---------
Net Depreciation..................................... $(183,772)
=========
</TABLE>
AUD--Australian Dollar FIM--Finnish Markka NLG--Netherlands Guilder
CAD--Canadian Dollar FRF--French Franc NOK--Norweigian Krone
CHF--Swiss Franc GBP--Great Britain Pound
NZD--New Zealand Dollar
DEM--German Deutsche Mark
ITL--Italian Lira SEK--Swedish Krona
DKK--Danish Kroner JPY--Japanese Yen USD--United States Dollar
ESP--Spanish Peseta
37
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1995 (unaudited) -- (continued)
Note 10. Capital Share Transactions
Transactions in capital shares of each class of each series for the six
months ended March 31, 1995 and for each respective Fund's prior year end
were as follows:
<TABLE>
<CAPTION>
BALANCED ASSETS FUND
-----------------------------------------------------------------------------------------------------
CLASS A CLASS B
----------------------------------------------- ----------------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE
MARCH 31, 1995 YEAR ENDED MARCH 31, 1995 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1994 (UNAUDITED) SEPTEMBER 30, 1994
--------------------- ------------------------ ------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- ----------- ---------- ------------ ---------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 521,969 $ 7,449,303 2,698,104 $ 40,272,932 1,443,372 $ 20,652,452 7,440,392 $ 110,364,992
Reinvested
dividends...... 216,126 2,964,975 102,965 1,508,917 696,320 9,533,196 332,957 4,879,992
Shares redeemed. (580,628) (8,308,135) (1,444,087) (21,386,612) (1,757,412) (25,073,410) (4,503,874) (66,040,730)
-------- ----------- ---------- ------------ ---------- ------------ ----------- -------------
Net increase.... 157,467 $ 2,106,143 1,356,982 $ 20,395,237 382,280 $ 5,112,238 3,269,475 $ 49,204,254
======== =========== ========== ============ ========== ============ =========== =============
<CAPTION>
BLUE CHIP GROWTH FUND
-----------------------------------------------------------------------------------------------------
CLASS A CLASS B
----------------------------------------------- ----------------------------------------------------
FOR THE INCEPTION FOR THE
SIX MONTHS ENDED (OCTOBER 8, 1993)(A) SIX MONTHS ENDED FOR THE
MARCH 31, 1995 TO MARCH 31, 1995 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1994 (UNAUDITED) SEPTEMBER 30, 1994
--------------------- ------------------------ ------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- ----------- ---------- ------------ ---------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 48,143 $ 718,505 303,594 $ 4,654,762 4,939,370 $ 71,809,094 10,324,732 $ 160,567,760
Reinvested
dividends...... 14,940 206,819 943 14,611 369,371 5,075,517 204,303 3,166,759
Shares redeemed. (52,851) (782,604) (96,580) (1,455,849) (4,985,194) (72,269,065) (10,751,734) (166,819,355)
-------- ----------- ---------- ------------ ---------- ------------ ----------- -------------
Net increase
(decrease)..... 10,232 $ 142,720 207,957 $ 3,213,524 323,547 $ 4,615,546 (222,699) $ (3,084,836)
======== =========== ========== ============ ========== ============ =========== =============
<CAPTION>
MID-CAP GROWTH FUND
-----------------------------------------------------------------------------------------------------
CLASS A CLASS B
----------------------------------------------- ----------------------------------------------------
FOR THE FOR THE INCEPTION
SIX MONTHS ENDED FOR THE SIX MONTHS ENDED (OCTOBER 4, 1993)(A)
MARCH 31, 1995 YEAR ENDED MARCH 31, 1995 TO
(UNAUDITED) SEPTEMBER 30, 1994 (UNAUDITED) SEPTEMBER 30, 1994
--------------------- ------------------------ ------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- ----------- ---------- ------------ ---------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 82,869 $ 1,142,684 2,337,824 $ 35,777,463 2,231,321 $ 30,424,138 4,151,875 $ 60,390,157
Reinvested
dividends...... 5,781 79,596 352,721 5,115,552 1,561 9,766 41,302 598,471
Shares redeemed. (286,139) (3,946,515) (2,239,597) (33,937,663) (2,108,694) (28,750,970) (3,898,362) (56,242,056)
-------- ----------- ---------- ------------ ---------- ------------ ----------- -------------
Net increase
(decrease)..... (197,489) $(2,724,235) 450,948 $ 6,955,352 124,188 $ 1,682,934 294,815 $ 4,746,572
======== =========== ========== ============ ========== ============ =========== =============
</TABLE>
(a) Commencement of sale of respective class of shares
38
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1995 (unaudited) -- (continued)
<TABLE>
<CAPTION>
SMALL COMPANY GROWTH FUND
------------------------------------------------------------------------------------------------------
CLASS A CLASS B
-------------------------------------------------- --------------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE
MARCH 31, 1995 YEAR ENDED MARCH 31, 1995 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1994 (UNAUDITED) SEPTEMBER 30, 1994
------------------------ ------------------------ ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 3,013,393 $ 52,890,294 9,770,630 $171,305,427 4,691,096 $ 81,778,641 9,949,146 $170,413,433
Reinvested
dividends...... 54,746 964,626 177,646 3,055,538 61,417 1,072,379 222,219 3,817,482
Shares redeemed. (2,998,247) (52,785,778) (9,637,891) (168,923,280) (4,967,360) (86,513,801) (9,011,396) (153,722,671)
---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------
Net increase
(decrease)..... 69,892 $ 1,069,142 310,385 $ 5,437,685 (214,847) $ (3,662,781) 1,159,969 $ 20,508,244
========== ============ ========== ============ ========== ============ ========== ============
<CAPTION>
GLOBAL BALANCED FUND
------------------------------------------------------------------------------------------------------
CLASS A CLASS B
-------------------------------------------------- --------------------------------------------------
FOR THE INCEPTION FOR THE INCEPTION
SIX MONTHS ENDED (JUNE 15, 1994)(A) SIX MONTHS ENDED (JUNE 16, 1994)(A)
MARCH 31, 1995 TO MARCH 31, 1995 TO
(UNAUDITED) SEPTEMBER 30, 1994 (UNAUDITED) SEPTEMBER 30, 1994
------------------------ ------------------------ ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 381,283 $ 2,593,227 1,933,627 $ 13,483,754 843,289 $ 5,779,122 2,132,333 $ 14,947,304
Reinvested
dividends...... 4,067 27,250 -- -- 2,161 14,461 -- --
Shares redeemed. (319,016) (2,127,172) (38,577) (268,643) (701,088) (4,752,127) (170,068) (1,177,938)
---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------
Net increase.... 66,334 $ 493,305 1,895,050 $ 13,215,111 144,362 $ 1,041,456 1,962,265 $ 13,769,366
========== ============ ========== ============ ========== ============ ========== ============
<CAPTION>
GROWTH AND INCOME FUND
------------------------------------------------------------------------------------------------------
CLASS A CLASS B
-------------------------------------------------- --------------------------------------------------
FOR THE INCEPTION FOR THE INCEPTION
SIX MONTHS ENDED (JULY 1, 1994)(A) SIX MONTHS ENDED (JULY 6, 1994)(A)
MARCH 31, 1995 TO MARCH 31, 1995 TO
(UNAUDITED) SEPTEMBER 30, 1994 (UNAUDITED) SEPTEMBER 30, 1994
------------------------ ------------------------ ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 480,158 $ 3,609,023 414,349 $ 3,037,584 115,545 $ 858,050 68,811 $ 510,253
Reinvested
dividends...... 16,024 117,507 3,411 25,414 2,814 20,645 154 1,146
Shares redeemed. (428,226) (3,219,130) (1,377) (10,263) (9,328) (69,219) (38,138) (285,414)
---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------
Net increase.... 67,956 $ 507,400 416,383 $ 3,052,735 109,031 $ 809,476 30,827 $ 225,985
========== ============ ========== ============ ========== ============ ========== ============
</TABLE>
(a) Commencement of sale of respective class of shares
39
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1995 (unaudited) -- (continued)
Note 11. 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 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 12. 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. For the six months ended March 31,
1995, the Funds had accrued and expensed $2,768, $1,044, $481, $1,201, $139
and $18 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 accrued
expenses on the Statement of Assets and Liabilities.
Note 13. Options
At March 31, 1995 Small Company Growth Fund and Global Balanced Fund held
the following open option contracts:
<TABLE>
<CAPTION>
PURCHASED CALL OPTIONS WRITTEN CALL OPTIONS
----------------------------------- -----------------------------------
SHARES SHARES
SUBJECT EXPIRATION EXERCISE SUBJECT EXPIRATION EXERCISE
CALL OPTIONS TO CALL DATE PRICE VALUE TO CALL DATE PRICE VALUE
------------ ------- ---------- -------- ------- ------- ---------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Small Company Growth
Fund
Woolworth Corp. ....... 16,600 5/20/95 20.000 $ 5,187 -- -- -- --
$
Global Balanced Fund
Government of Japan.... 500,000 5/15/95 97.077 24,640 500,000 5/15/95 99.000 23,028
</TABLE>
40
<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
Charles J. Dudley, Vice President Goldman Sachs Asset Management
Nancy Kelly, Vice President International 95 Broad Street New
Audrey L. Snell, Vice President York, NY 10004
Robert M. Zakem, Secretary
Peter C. Sutton, Controller DISTRIBUTOR
Donna M. Handel, 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, MO
NEW YORK, NY 10017-3204 PERMIT NO. 3657
1-800-858-8850
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.
The accompanying report has not been
examined by independent accountants
and accordingly no opinion has been
expressed thereon.
SPONSORED BY:
LOGO SunAmerica
Asset Management
EFANN
