<PAGE>
March 31, 1997
SunAmerica
Equity Funds
[LOGO]
Semiannual Report
Balanced Assets (Yen) Blue Chip Growth (Yen) Mid-cap growth
Small company growth (Yen) Global balanced (Yen) Growth and income
[LOGO] SunAmerica
Asset Management
<PAGE>
SUNAMERICA EQUITY FUNDS
SHAREHOLDER LETTER
DEAR SHAREHOLDER:
Our dominant thesis with respect to the economy for the past several years
has been one of slow growth and moderate inflation. The overall impression
among most money managers was that the economy would continue to grow
modestly, in the 2%-2.5% range, and that inflation was non-existent. Our
thesis was challenged as the economy surprised many investors by showing
surprising strength at the end of the first quarter, which brought about
inflationary fears. This stronger-than anticipated economic strength, forced
the Federal Reserve to raise interest rates and appear pro-active on the
inflationary outlook. Typically, stocks do not perform well in a rising
interest rate environment and this is likely the cause of the equity market's
difficulties through the first quarter of 1997. Despite these challenges, it
is our belief that the economy will continue to moderate throughout the year
and inflation will remain close to its current level. However, until a series
of more conservative economic numbers are revealed, uncertainty may continue
over the short-term.
BALANCED ASSETS FUND
We continue to focus the Fund on sectors we believe will produce favorable
earnings in most economic environments and on companies with high visibility,
consistent double-digit earnings and strong underlying fundamentals. Earnings
growth will be of paramount importance to continued performance in 1997. To
that end, we continue to emphasize and overweight the healthcare and financial
service sectors of the market. It is our belief that both of these sectors
will show solid growth with significant cash flow, increasing the potential of
share repurchases, dividend increases, and further industry consolidation. Our
underweighting of the energy sector early in the year has proved to be very
beneficial to performance. We will, however, increase our exposure to this
sector as we anticipate an earnings recovery in the energy sector. Finally, we
remain market weighted in the technology sector and will look to increase our
positions as the market outlook for this industry improves. Our top five
equity holdings as of the end of March 1997 included, Summit Bancorp, Allstate
Corp., American Express Co., Lucent Technologies, Inc. and Mobil Corp.
BLUE CHIP GROWTH FUND
The Fund continues to perform well in this difficult market. Our strategy
has been to overweight those companies and industries with leading global
franchises and improving fundamentals. We continue to concentrate the Fund's
investments on quality names, with high earnings visibility and double digit
growth. Our focus will continue to be on strong secular trends that may
produce favorable earnings in almost any economic environment. To that end, we
are emphasizing the interest rate sensitive sectors of the market. It is our
contention that as we begin to see the first signs of a slowdown in the
economy, these stocks will greatly outperform the market. We are also
overweighting the healthcare sector, as we believe firmly, the graying of
America and the demographic changes that are accompanying this trend are
accelerating healthcare nationwide. We are continuing to look for
opportunities in large, mainstream technology companies. Finally, our exposure
to the cyclical sectors of the market have been kept to a minimum. We remain
underweighted to the paper and metals sectors of the market. Our top five
holdings at the end of the first quarter 1997 were American Express Co., Home
Depot, Lucent Technologies, Inc., Aetna, Inc. and Allstate Corp.
1
<PAGE>
SUNAMERICA EQUITY FUNDS
SHAREHOLDER LETTER
MID-CAP GROWTH FUND
The need for liquidity and the popularity of index funds has attracted
investors to large-cap stocks, away from small and mid-cap companies. As a
result, small to medium-sized companies have continued to underperformed their
large-cap counterparts. Although, the mid-cap sector has experienced
volatility as a result of disappointing earnings and rising interest rates, we
are confident the potential for significant price recovery and the favorable
fundamentals of this sector should attract investors to return to the mid-cap
universe. We have identified mid-cap leadership stocks in sectors benefiting
from secular trends. These industries include, computer software systems,
hardware and semiconductors such as, BMC Software and National Semiconductor.
Other areas that we continue to emphasize are family-oriented, or cost
conscious retailing, such as Goody's Family Stores and Michael's Stores. These
companies continue to expand their retail operations to meet the increasing
demands of the value-oriented shopper.
SMALL COMPANY GROWTH FUND
The flow of investment assets from small-cap to large-cap companies is the
primary reason for this sector's underperformance. Trying the patience of
investors, small-cap stocks have responded more to emotions than investment
fundamentals. However, we expect this deviation from the long-term growth of
this sector to be short-term in nature. Eventually, the underlying
fundamentals of many smaller companies will, once again, be reflected by the
market. The Fund employs a top-down, secular approach to investing, focusing
on high growth sectors of the economy such as, technology, specialty
retailing, oil service and selective healthcare. We then analyze the
fundamentals of a company's business and seek out opportunities benefiting
from secular trends. As always, we have diversified the Fund among various
leadership companies within promising sectors. In the technology area, one of
our favorites is Internet Publisher and trade show organizer, Mecklermedia.
This company has three growing franchises, recurring revenue streams and
little technology risk. In the retail sector, we have invested in a number of
high growth manufacturers which benefit from increasing levels of disposable
income or recognized brand names such as, Gucci, Pacific Sunwear and Jones
Apparel Group. We continue to participate in the oil and gas service sector,
which we believe is benefiting from the multi-year expansion of energy
exploration worldwide. Small-cap companies, with their faster rates of
earnings growth, currently offer investors more relative value and opportunity
than large-cap alternatives.
GLOBAL BALANCED FUND
International equity markets continued to underperform the domestic stock
markets in the first quarter of 1997. The Global Balanced Fund's portfolio as
of March 31, 1997 was allocated: 49.5% in foreign equities, 20.8% in domestic
and foreign bonds, and 17.1% in U.S. equities. The international portion of
the Fund continues to emphasize Japanese stocks, which we believe will benefit
from the existing low interest rate environment and an improving Japanese
economy. Over the course of the first quarter we increased our holdings of
U.S. Treasury securities as interest rates rose to levels we believe offer
attractive relative value. The foreign bond portion of the Fund is positioned
to offer participation similar to the J.P. Morgan International Government
Bond Index. The U.S. equity portion of the Fund continues to focus on
companies with consistent double-digit earnings and solid fundamentals that
should outperform in any economic
2
<PAGE>
SUNAMERICA EQUITY FUNDS
SHAREHOLDER LETTER
environment. We are still convinced that international investments are
particularly attractive at this point in the global economic recovery and they
should represent a significant portion of a well diversified portfolio.
GROWTH AND INCOME FUND
The Growth and Income Fund remains broadly diversified as of March 31, 1997.
Small overweighted positions existed in the healthcare and basic industries
sectors. Utilities remain underweight, as the lack of earnings growth gives us
cause for concern. Our focus will continue to be on attractively priced sectors
and stocks with better than average earnings potential. We have been growing
positions in financial service and selective healthcare companies, particularly
managed care providers. The top five holdings were Crown Cork & Seal Co., Inc.,
Philip Morris, Cos., Inc., Merck & Co., Intel Corp. and IMC Global, Inc.
OUTLOOK
By all historic measures the stock market is overvalued on a short-term
basis, especially given what the Federal Reserve must do to slow the rise of
wage inflation. We anticipate a further rise in interest rates will contain
economic growth at an acceptable 2% level during the second half of this year.
Although a correction seems likely, a correction is not a bear market. The
correction may be sharp and severe. We are confident, however, it will be brief
and should represent a buying opportunity. We still expect to see the Dow at
8000 during 1997 and believe this bull market is not over. It is just maturing.
It is important to note that the secular trend of money flowing into mutual
funds continued in the first quarter, and the effect of retirement savings
leads us to believe this will continue for many years. As of the end of 1996,
the $3.7 trillion in mutual fund assets were distributed as follows: 50% in
equities, 25% in bonds and 25% in money market funds. There is plenty of
liquidity and the demographic trend favors equities.
/s/ Stanton J. Feeley /s/ Audrey Snell /s/ Gerard P.
Stanton J. Feeley Audrey Snell Gerard P.
Chief Investment Officer Portfolio Manager Sullivan
Portfolio Manager
3
<PAGE>
SUNAMERICA EQUITY FUNDS
STATEMENT OF ASSETS AND LIABILITIES -- March 31, 1997 (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*.............. $298,474,863 $80,626,280 $47,730,229 $205,279,466 $21,270,526 $62,152,835
Short-term securities
(cost equals market)... -- -- -- -- 1,287,000 --
Repurchase agreements
(cost equals market)... 11,942,000 7,498,000 -- 23,656,000 1,300,000 5,044,000
Cash.................... 995 298 3,124,937 -- 300,806 155
Foreign cash............ -- -- -- -- 362,313 --
Receivable for
investments sold....... 12,869,232 1,587,997 3,326,148 11,575,277 -- 2,925,182
Interest and dividends
receivable............. 1,456,535 82,614 47,511 83,549 207,246 89,856
Receivable for shares of
beneficial
interest sold.......... 60,171 47,299 25,761 366,211 2,427 278,032
Prepaid expenses........ 16,401 33,570 6,928 13,333 1,246 1,286
Receivable from
investment adviser..... 1,734 -- -- 1,633 6,779 13,575
Unrealized appreciation
of foreign currency
contracts.............. -- -- -- -- 15,896 --
Deferred organizational
expenses............... -- -- -- -- 1,897 620
------------ ----------- ----------- ------------ ----------- -----------
Total assets.......... 324,821,931 89,876,058 54,261,514 240,975,469 24,756,136 70,505,541
------------ ----------- ----------- ------------ ----------- -----------
LIABILITIES:
Payable for investments
purchased.............. 18,153,833 3,216,029 -- 15,356,390 298,041 3,158,271
Payable for shares of
beneficial interest
redeemed............... 1,264,906 651,377 51,125 1,462,797 255,479 162,429
Investment advisory and
management
fees payable........... 203,785 60,192 35,373 158,021 20,967 43,716
Accrued expenses........ 196,845 77,384 73,923 137,239 64,305 52,473
Distribution and service
maintenance
fees payable........... 185,631 48,892 23,709 127,962 15,965 37,575
Due to custodian........ 3,188,854 963,753
Unrealized depreciation
of foreign
currency contracts..... -- -- -- -- 95,712 --
------------ ----------- ----------- ------------ ----------- -----------
Total liabilities..... 20,005,000 4,053,874 3,372,984 18,206,162 750,469 3,454,464
------------ ----------- ----------- ------------ ----------- -----------
Net assets.......... $304,816,931 $85,822,184 $50,888,530 $222,769,307 $24,005,667 $67,051,077
============ =========== =========== ============ =========== ===========
*Identified cost........ $285,479,790 $77,558,861 $43,071,462 $187,343,789 $20,178,458 $60,161,205
============ =========== =========== ============ =========== ===========
</TABLE>
See Notes to Financial Statements
4
<PAGE>
SUNAMERICA EQUITY FUNDS
STATEMENT OF ASSETS AND LIABILITIES -- March 31, 1997 (unaudited)--(continued)
<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>
NET ASSETS WERE COMPOSED
OF:
Shares of beneficial
interest, $.01 par
value.................. $ 196,014 $ 54,854 $ 30,944 $ 110,337 $ 31,324 $ 61,673
Paid-in capital......... 280,950,072 77,601,264 43,056,348 209,051,079 21,759,929 62,098,165
------------ ----------- ----------- ------------ ----------- -----------
281,146,086 77,656,118 43,087,292 209,161,416 21,791,253 62,159,838
Accumulated
undistributed net
investment income
(loss)................. 71,361 (102,511) (301,999) (1,729,473) (144,548) 24,357
Accumulated
undistributed net
realized gain (loss) on
investments, foreign
currency and other
assets and liabilities. 10,604,411 5,201,158 3,444,470 (2,598,313) 1,355,990 2,875,252
Net unrealized
appreciation of
investments............ 12,995,073 3,067,419 4,658,767 17,935,677 1,092,068 1,991,630
Net unrealized
depreciation of foreign
currency, other assets
and liabilities........ -- -- -- -- (89,096) --
------------ ----------- ----------- ------------ ----------- -----------
Net assets.......... $304,816,931 $85,822,184 $50,888,530 $222,769,307 $24,005,667 $67,051,077
============ =========== =========== ============ =========== ===========
CLASS A (UNLIMITED
SHARES AUTHORIZED):
Net assets.............. $148,941,794 $53,730,593 $39,051,514 $134,029,073 $ 8,738,315 $36,390,513
Shares of beneficial
interest issued and
outstanding............ 9,575,883 3,399,472 2,360,347 6,566,617 1,135,893 3,341,626
Net asset value and
redemption price per
share.................. $ 15.55 $ 15.81 $ 16.54 $ 20.41 $ 7.69 $ 10.89
Maximum sales charge
(5.75% of offering
price)................. 0.95 0.96 1.01 1.25 0.47 0.66
------------ ----------- ----------- ------------ ----------- -----------
Maximum offering price
to public.............. $ 16.50 $ 16.77 $ 17.55 $ 21.66 $ 8.16 $ 11.55
============ =========== =========== ============ =========== ===========
CLASS B (UNLIMITED
SHARES AUTHORIZED):
Net assets.............. $155,856,834 $32,091,591 $11,837,016 $ 88,317,328 $15,267,352 $30,660,564
Shares of beneficial
interest issued and
outstanding............ 10,024,312 2,085,934 734,088 4,446,456 1,996,540 2,825,701
Net asset value,
offering and redemption
price per share
(excluding any
applicable contingent
deferred sales charge). $ 15.55 $ 15.38 $ 16.12 $ 19.86 $ 7.65 $ 10.85
============ =========== =========== ============ =========== ===========
CLASS Z (UNLIMITED
SHARES AUTHORIZED):
Net assets.............. $ 18,303 $ 422,906
Shares of beneficial
interest issued and
outstanding............ 1,177 20,668
Net asset value,
offering and redemption
price per share........ $ 15.55 $ 20.46
============ ============
</TABLE>
See Notes to Financial Statements
5
<PAGE>
SUNAMERICA EQUITY FUNDS
STATEMENT OF OPERATIONS -- For the six months ended March 31, 1997 (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 (net of
withholding taxes of
$1,960 on Global
Balanced Fund).......... $ 4,215,047 $ 176,598 $ 45,047 $ 221,313 $ 240,377 $ 127,477
Dividends (net of
withholding taxes of
$4,462, $2,749, $1,913,
$2,161, $12,564 and
$1,878, respectively)... 1,418,447 534,456 168,111 424,444 113,869 439,850
----------- ----------- ----------- ------------ --------- ----------
Total investment income.. 5,633,494 711,054 213,158 645,757 354,246 567,327
----------- ----------- ----------- ------------ --------- ----------
Expenses:
Investment advisory and
management fees......... 1,203,037 339,234 213,175 1,006,084 129,099 208,479
Distribution and service
maintenance fees-Class
A....................... 264,165 94,328 75,051 278,654 17,026 54,478
Distribution and service
maintenance fees-Class
B....................... 849,241 182,803 69,802 544,099 80,453 122,320
Transfer agent fees and
expenses-Class A........ 209,799 72,363 59,800 213,843 14,409 40,526
Transfer agent fees and
expenses-Class B........ 216,086 49,173 20,514 145,019 22,362 33,290
Transfer agent fees and
expenses-Class Z........ 2,200 -- -- 2,200 -- --
Custodian fees and
expenses................ 70,675 36,625 35,050 66,700 87,715 40,795
Registration fees-Class
A....................... 19,319 3,762 8,230 23,720 2,269 5,397
Registration fees-Class
B....................... 21,971 4,618 5,302 16,815 2,281 4,283
Registration fees-Class
Z....................... 46 -- -- 202 -- --
Audit and tax consulting
fees.................... 25,710 11,325 10,140 21,855 6,940 11,295
Trustees' fees and
expenses................ 19,909 5,574 3,467 16,147 1,980 2,745
Printing expense......... 12,670 7,705 2,855 11,250 1,740 2,665
Legal fees and expenses.. 3,045 1,110 185 1,760 -- --
Insurance expense........ 2,024 548 335 1,584 164 184
Interest expense......... 207 2,298 9,418 25,242 -- 291
Amortization of
organizational expenses. -- -- -- -- 437 138
Miscellaneous expenses... 3,790 2,099 1,833 2,201 1,115 1,054
----------- ----------- ----------- ------------ --------- ----------
Total expenses........... 2,923,894 813,565 515,157 2,377,375 367,990 527,940
Less: expenses
reimbursed by
investment adviser...... (2,237) -- -- (2,145) (39,251) (90,493)
----------- ----------- ----------- ------------ --------- ----------
Net expenses............. 2,921,657 813,565 515,157 2,375,230 328,739 437,447
----------- ----------- ----------- ------------ --------- ----------
Net investment income
(loss)................... 2,711,837 (102,511) (301,999) (1,729,473) 25,507 129,880
----------- ----------- ----------- ------------ --------- ----------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS:
Net realized gain on
investments.............. 14,064,496 6,152,510 4,919,364 7,728,349 778,118 3,195,475
Net realized gain (loss)
on foreign currency and
other assets and
liabilities.............. -- -- -- -- 807,245 (7)
Net change in unrealized
appreciation/depreciation
of investments........... (3,820,486) (2,832,595) (5,949,732) (39,630,581) (674,943) 192,792
Net change in unrealized
appreciation/depreciation
of foreign currency and
other assets and
liabilities.............. -- -- -- -- (218,383) --
----------- ----------- ----------- ------------ --------- ----------
Net realized and
unrealized gain (loss) on
investments, foreign
currency and other assets
and liabilities.......... 10,244,010 3,319,915 (1,030,368) (31,902,232) 692,037 3,388,260
----------- ----------- ----------- ------------ --------- ----------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS:.............. $12,955,847 $ 3,217,404 $(1,332,367) $(33,631,705) $ 717,544 $3,518,140
=========== =========== =========== ============ ========= ==========
</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, 1997 SEPTEMBER 30, MARCH 31, 1997 SEPTEMBER 30, MARCH 31, 1997 SEPTEMBER 30,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
OPERATIONS:
Net investment income
(loss)............... $ 2,711,837 $ 3,950,337 $ (102,511) $ (408,630) $ (301,999) $ (425,977)
Net realized gain on
investments.......... 14,064,496 33,912,222 6,152,510 13,200,391 4,919,364 1,634,384
Net change in
unrealized
appreciation/depreciation
of investments....... (3,820,486) (8,691,595) (2,832,595) (2,296,867) (5,949,732) 4,688,230
------------ ------------ ------------ ----------- ----------- -----------
Net increase (decrease)
in net assets
resulting from
operations............ 12,955,847 29,170,964 3,217,404 10,494,894 (1,332,367) 5,896,637
------------ ------------ ------------ ----------- ----------- -----------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income (Class A)..... (1,475,445) (2,345,435) -- -- -- --
From net investment
income (Class B)..... (1,146,279) (1,868,201) -- -- -- --
From net investment
income (Class Z)..... (175) -- -- -- -- --
From net realized
gains on investments
(Class A)............ (14,835,171) (7,282,221) (7,108,685) (4,646,750) (1,856,886) (4,337,142)
From net realized
gains on investments
(Class B)............ (17,300,021) (9,730,482) (5,010,638) (4,492,488) (619,105) (1,083,506)
From net realized
gains on investments
(Class Z)............ (994) -- -- -- -- --
------------ ------------ ------------ ----------- ----------- -----------
Total dividends and
distributions to
shareholders.......... (34,758,085) (21,226,339) (12,119,323) (9,139,238) (2,475,991) (5,420,648)
------------ ------------ ------------ ----------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS
RESULTING FROM CAPITAL
SHARE TRANSACTIONS
(NOTE 7).............. 8,387,207 28,256,172 6,531,197 4,897,454 (991,298) 7,954,560
------------ ------------ ------------ ----------- ----------- -----------
TOTAL INCREASE
(DECREASE) IN NET
ASSETS................ (13,415,031) 36,200,797 (2,370,722) 6,253,110 (4,799,656) 8,430,549
NET ASSETS:
Beginning of period.... 318,231,962 282,031,165 88,192,906 81,939,796 55,688,186 47,257,637
------------ ------------ ------------ ----------- ----------- -----------
End of period
[including
undistributed net
investment income
(loss) for March 31,
1997 and September 30,
1996 of $71,361,
$(18,577); $(102,511),
$0; $(301,999), and
$0, respectively]..... $304,816,931 $318,231,962 $ 85,822,184 $88,192,906 $50,888,530 $55,688,186
============ ============ ============ =========== =========== ===========
</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 YEAR FOR THE SIX MONTHS FOR THE YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
MARCH 31, 1997 SEPTEMBER 30, MARCH 31, 1997 SEPTEMBER 30, MARCH 31, 1997 SEPTEMBER 30,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
OPERATIONS:
Net investment income
(loss)............... $ (1,729,473) $ (1,857,708) $ 25,507 $ 108,377 $ 129,880 $ 154,585
Net realized gain on
investments.......... 7,728,349 14,472 778,118 1,153,686 3,195,475 1,853,730
Net realized gain
(loss) on foreign
currency, other
assets and
liabilities.......... -- 36 807,245 797,602 (7) 2
Net change in
unrealized
appreciation/depreciation
of investments....... (39,630,581) 33,583,299 (674,943) 218,368 192,792 1,445,861
Net change in
unrealized
appreciation/depreciation
of foreign currency,
other assets and
liabilities.......... -- -- (218,383) 83,360 -- --
------------ ------------ ----------- ----------- ----------- -----------
Net increase (decrease)
in net assets
resulting from
operations............ (33,631,705) 31,740,099 717,544 2,361,393 3,518,140 3,454,178
------------ ------------ ----------- ----------- ----------- -----------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income (Class A)..... -- -- (292,534) (478,740) (72,849) (123,623)
From net investment
income (Class B)..... -- -- (390,427) (693,095) (30,158) (58,296)
From net investment
income (Class Z)..... -- -- -- -- -- --
From net realized
gains on investments
(Class A)............ (5,628,252) (16,561,192) -- -- (1,193,264) (175,889)
From net realized
gains on investments
(Class B)............ (3,985,470) (12,782,675) -- -- (917,178) (127,334)
From net realized
gains on investments
(Class Z)............ (7,070) -- -- -- -- --
------------ ------------ ----------- ----------- ----------- -----------
Total dividends and
distributions to
shareholders.......... (9,620,792) (29,343,867) (682,961) (1,171,835) (2,213,449) (485,142)
------------ ------------ ----------- ----------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS
RESULTING FROM CAPITAL
SHARE TRANSACTIONS
(NOTE 7).............. (384,664) 106,187,132 (2,175,908) 1,366,433 30,744,365 25,962,674
------------ ------------ ----------- ----------- ----------- -----------
TOTAL INCREASE
(DECREASE) IN NET
ASSETS................ (43,637,161) 108,583,364 (2,141,325) 2,555,991 32,049,056 28,931,710
NET ASSETS:
Beginning of period.... 266,406,468 157,823,104 26,146,992 23,591,001 35,002,021 6,070,311
------------ ------------ ----------- ----------- ----------- -----------
End of period
[including
undistributed net
investment income for
March 31, 1997 and
September 30, 1996
$(1,729,473), $0;
$(144,548), $512,906;
$24,357, and $(2,516),
respectively]......... $222,769,307 $266,406,468 $24,005,667 $26,146,992 $67,051,077 $35,002,021
============ ============ =========== =========== =========== ===========
</TABLE>
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)
- ---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ----------
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME AVERAGE
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO COMMISSION
ENDED NET ASSETS NET ASSETS TURNOVER PER SHARE@
- ---------------- -------------- --------------- --------- ----------
CLASS A
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/24/93-
9/30/93(3)..... $15.07 $ -- $ 0.06 $ 0.06 $ -- $ -- $ -- $15.13 0.40% $ 33,381
9/30/94......... 15.13 0.30 (0.23) 0.07 (0.28) (0.30) (0.58) 14.62 0.50 52,098
9/30/95......... 14.62 0.32 2.51 2.83 (0.45) (0.58) (1.03) 16.42 20.68 119,916
9/30/96......... 16.42 0.27 1.39 1.66 (0.28) (0.99) (1.27) 16.81 10.65 147,035
3/31/97(7)...... 16.81 0.17 0.48 0.65 (0.16) (1.75) (1.91) 15.55 4.10 148,942
<S> <C> <C> <C> <C>
9/24/93-
9/30/93(3)..... 1.54%(4) 0.46%(4) 25% $ NA
9/30/94......... 1.58 2.00 141 NA
9/30/95......... 1.50 2.13 130 NA
9/30/96......... 1.52 1.63 187 0.0611
3/31/97(7)...... 1.49(4) 2.02(4) 95 0.0600
CLASS B
6/30/93(5)...... $15.63 $ 0.30 $ 2.63 $ 2.93 $(0.30) $(2.40) $(2.70) $15.86 20.29% $113,871
7/01/93-
9/30/93(5)..... 15.86 0.05 0.49 0.54 (0.06) (1.21) (1.27) 15.13 3.44 137,456
9/30/94......... 15.13 0.20 (0.23) (0.03) (0.18) (0.30) (0.48) 14.62 (0.14) 180,655
9/30/95......... 14.62 0.23 2.51 2.74 (0.36) (0.58) (0.94) 16.42 19.96 162,115
9/30/96......... 16.42 0.17 1.38 1.55 (0.18) (0.99) (1.17) 16.80 9.93 171,197
3/31/97(7)...... 16.80 0.12 0.50 0.62 (0.12) (1.75) (1.87) 15.55 3.86 155,857
6/30/93(5)...... 1.91%(6) 1.94%(6) 251% $ NA
7/01/93-
9/30/93(5)..... 2.10(4)(6) 1.36(4)(6) 25 NA
9/30/94......... 2.21 1.36 141 NA
9/30/95......... 2.12 1.59 130 NA
9/30/96......... 2.12 1.03 187 0.0611
3/31/97(7)...... 2.12(4) 1.40(4) 95 0.0600
CLASS Z
10/07/96-
3/31/97(3)(7).. $17.07 $ 0.21 $ 0.23 $ 0.44 $(0.21) $(1.75) $(1.96) $15.55 2.78% $ 18
10/07/96-
3/31/97(3)(7).. 0.99%(4)(6) 2.67%(4)(6) 95% $ NA
- --------------------------------------------------------------------------------
BLUE CHIP GROWTH FUND
<CAPTION>
NET
GAIN(LOSS)
ON INVEST- TOTAL DIVIDENDS DISTRI-
NET ASSET NET MENTS (BOTH FROM FROM NET BUTIONS NET ASSET NET ASSETS
VALUE, INVEST- REALIZED INVEST- INVEST- FROM TOTAL VALUE, END OF
PERIOD BEGINNING MENT AND MENT MENT CAPITAL DISTRI- END OF TOTAL PERIOD
ENDED OF PERIOD INCOME UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) (000'S)
- ---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ----------
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME AVERAGE
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO COMMISSION
ENDED NET ASSETS NET ASSETS TURNOVER PER SHARE@
- ---------------- -------------- --------------- --------- ----------
CLASS A
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/08/93-
9/30/94(3)..... $16.24 $ 0.09 (1) $(0.26) $(0.17) $ -- $(0.65) $(0.65) $15.42 (1.05)% $ 3,207
9/30/95......... 15.42 0.02 (1) 2.99 3.01 -- (1.09) (1.09) 17.34 21.29 42,407
9/30/96......... 17.34 (0.03)(1) 2.22 2.19 -- (1.91) (1.91) 17.62 13.88 51,993
3/31/97(7)...... 17.62 -- (1) 0.62 0.62 -- (2.43) (2.43) 15.81 3.96 53,731
<S> <C> <C> <C> <C>
10/08/93-
9/30/94(3)..... 1.64%(4)(6) 0.65%(4)(6) 170% $ NA
9/30/95......... 1.58(6) 0.11(6) 251 NA
9/30/96......... 1.57 (0.18) 269 0.0600
3/31/97(7)...... 1.53(4) 0.03(4) 125 0.0600
CLASS B
12/31/92(5)..... $12.53 $(0.13) $ 1.19 $ 1.06 $ -- $ -- $ -- $13.59 8.46% $ 83,237
1/01/93-
9/30/93(5)..... 13.59 (0.02)(1) 2.71 2.69 -- -- -- 16.28 19.79 79,774
9/30/94......... 16.28 (0.01)(1) (0.28) (0.29) -- (0.65) (0.65) 15.34 (1.81) 71,749
9/30/95......... 15.34 (0.01)(1) 2.89 2.88 -- (1.09) (1.09) 17.13 20.51 39,533
9/30/96......... 17.13 (0.14)(1) 2.19 2.05 -- (1.91) (1.91) 17.27 13.17 36,199
3/31/97(7)...... 17.27 (0.05)(1) 0.59 0.54 -- (2.43) (2.43) 15.38 3.55 32,092
12/31/92(5)..... 2.53% (0.75)% 192% $ NA
1/01/93-
9/30/93(5)..... 2.46(4) (0.14)(4) 171 NA
9/30/94......... 2.28 (0.05) 170 NA
9/30/95......... 2.22 (0.09) 251 NA
9/30/96......... 2.23 (0.83) 269 0.0600
3/31/97(7)...... 2.19(4) (0.61)(4) 125 0.0600
</TABLE>
- ------------
@ The average commission per share is derived by taking the agency commissions
paid on equity securities trades and dividing by the number of shares
purchased or sold.
(1) Calculated based upon average shares outstanding
(2) Total return is not annualized and does not reflect sales load
(3) Commencement of sale of respective class of shares
(4) Annualized
(5) Pursuant to a reorganization of the SunAmerica Mutual Funds, the Equity
Funds fiscal year ends were changed to September 30
(6) Net of the following expense reimbursements (based on average net assets):
<TABLE>
<CAPTION>
6/30/93 9/30/93 9/30/94 9/30/95 3/31/97
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Balanced Assets Class B.............. .05% .04% -- -- --
Balanced Assets Class Z.............. -- -- -- -- 43.04%
Blue Chip Growth Class A............. -- -- 1.66% .11% --
</TABLE>
(7) Unaudited
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)
- ---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ----------
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME AVERAGE
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO COMMISSION
ENDED NET ASSETS NET ASSETS TURNOVER PER SHARE@
- ---------------- -------------- -------------- --------- ----------
CLASS A
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/92(4)..... $13.30 $(0.07) $ 2.87 $ 2.80 $(0.02) $(0.44) $(0.46) $15.64 21.42% $30,024
12/01/92-
9/30/93(4)..... 15.64 (0.09)(2) 3.17 3.08 -- (0.69) (0.69) 18.03 20.42 34,918
9/30/94......... 18.03 0.04 (2) (1.64) (1.60) -- (2.65) (2.65) 13.78 (9.60) 32,906
9/30/95......... 13.78 (0.08)(2) 4.14 4.06 (0.04) -- (0.04) 17.80 29.51 37,714
9/30/96......... 17.80 (0.12)(2) 2.21 2.09 -- (2.11) (2.11) 17.78 12.92 41,904
3/31/97(9)...... 17.78 (0.08)(2) (0.36) (0.44) -- (0.80) (0.80) 16.54 (2.70) 39,052
<S> <C> <C> <C> <C>
11/30/92(4)..... 1.76% (0.46)% 98% $ NA
12/01/92-
9/30/93(4)..... 1.81(3) 1.18(3) 231 NA
9/30/94......... 1.76 0.28 555 NA
9/30/95......... 1.66 (0.51) 392 NA
9/30/96......... 1.62 (0.69) 307 0.0603
3/31/97(9)...... 1.64(3) (0.89)(3) 161 0.0600
CLASS B
10/04/93-
9/30/94(5)..... $18.12 $ 0.03 (2) $(1.80) $(1.77) $ -- $(2.65) $(2.65) $13.70 (10.56)% $ 4,039
9/30/95......... 13.70 (0.18)(2) 4.08 3.90 (0.02) -- (0.02) 17.58 28.55 9,544
9/30/96......... 17.58 (0.24)(2) 2.18 1.94 -- (2.11) (2.11) 17.41 12.16 13,784
3/31/97(9)...... 17.41 (0.14)(2) (0.35) (0.49) -- (0.80) (0.80) 16.12 (3.05) 11,837
10/04/93-
9/30/94(5)..... 2.43%(3)(6) 0.20%(3)(6) 555% $ NA
9/30/95......... 2.31(7) (0.17)(7) 392 NA
9/30/96......... 2.32 (1.43) 307 0.0603
3/31/97(9)...... 2.34(3) (1.60)(3) 161 0.0600
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
<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(2) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(1) (000'S)
- ---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ----------
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME AVERAGE
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO COMMISSION
ENDED NET ASSETS NET ASSETS TURNOVER PER SHARE@
- ---------------- -------------- -------------- --------- ----------
CLASS A
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/30/92(4)(8).. $13.88 $(0.12) $ 3.39 $ 3.27 $ -- $(0.69) $(0.69) $16.46 24.31% $32,056
12/01/92-
9/30/93(4)(8).. 16.46 (0.02) 4.07 4.05 -- (0.73) (0.73) 19.78 25.68 39,238
9/30/94......... 19.78 (0.10) (1.40) (1.50) -- (1.46) (1.46) 16.82 (7.74) 38,570
9/30/95......... 16.82 (0.04) 8.28 8.24 -- (0.41) (0.41) 24.65 50.00 89,510
9/30/96......... 24.65 (0.16) 4.29 4.13 -- (4.53) (4.53) 24.25 19.35 158,567
3/31/97(9)...... 24.25 (0.12) (2.86) (2.98) -- (0.86) (0.86) 20.41 (12.76) 134,029
<S> <C> <C> <C> <C>
11/30/92(4)(8).. 1.90% (0.88)% 209% $ NA
12/01/92-
9/30/93(4)(8).. 1.83(3) (0.15)(3) 216 NA
9/30/94......... 1.67 (0.60) 411 NA
9/30/95......... 1.57 (0.22) 351 NA
9/30/96......... 1.53 (0.68) 240 0.0607
3/31/97(9)...... 1.51(3) (1.03)(3) 153 0.0600
CLASS B
9/24/93-
9/30/93(5)..... $19.66 $ -- $ 0.12 $ 0.12 $ -- $ -- $ -- $19.78 0.61% $ 38,898
9/30/94......... 19.78 (0.20) (1.42) (1.62) -- (1.46) (1.46) 16.70 (8.40) 52,208
9/30/95......... 16.70 (0.16) 8.19 8.03 -- (0.41) (0.41) 24.32 49.08 68,313
9/30/96......... 24.32 (0.29) 4.20 3.91 -- (4.53) (4.53) 23.70 18.60 107,839
3/31/97(9)...... 23.70 (0.20) (2.78) (2.98) -- (0.86) (0.86) 19.86 (13.06) 88,317
9/24/93-
9/30/93(5)..... 2.34%(3) (1.70)%(3) 216% $ NA
9/30/94......... 2.31 (1.23) 411 NA
9/30/95......... 2.22 (0.84) 351 NA
9/30/96......... 2.16 (1.30) 240 0.0607
3/31/97(9)...... 2.15(3) (1.67)(3) 153 0.0600
CLASS Z
10/07/96-
3/31/97(5)(9).. $24.61 $(0.06) $(3.23) $(3.29) $ -- $(0.86) $(0.86) $20.46 13.83% $423
10/07/96-
3/31/97(5)(9).. 1.10%(3) (0.61)%(3)(10) 153% $0.0600
</TABLE>
- ------------
@ The average commission per share is derived by taking the agency
commissions paid on equity securities trades and dividing by the number of
shares purchased or sold.
(1) Total return is not annualized and does not reflect sales load
(2) Calculated based upon average shares outstanding
(3) Annualized
(4) Pursuant to a reorganization of the SunAmerica Mutual Funds, the Equity
Funds fiscal year ends were changed to September 30
(5) Commencement of sale of respective class of shares
(6) Net of expense reimbursement equivalent to .48% of average net assets for
the period ended 9/30/94
(7) Net of expense reimbursement equivalent to .17% of average net assets for
the year ended 9/30/95
(8) Restated to reflect a 0.984460367 for 1.00 stock split effective September
24, 1993
(9) Unaudited
(10) Net of expense reimbursement equivalent to 1.80% of average net assets for
the period ended 3/31/97
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)
- ---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ----------
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME AVERAGE
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO COMMISSION
ENDED NET ASSETS(5) NET ASSETS(5) TURNOVER PER SHARE@
- ---------------- ------------- ------------- --------- ----------
CLASS A
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/15/94-
9/30/94(3)..... $6.94 $0.02 $(0.05) $(0.03) $ -- $ -- $ -- $6.91 (0.43)% $13,100
9/30/95......... 6.91 0.10 0.36 0.46 (0.01) -- (0.01) 7.36 6.72 9,615
9/30/96......... 7.36 0.06 0.71 0.77 (0.42) -- (0.42) 7.71 11.00 10,035
3/31/97(6)...... 7.71 0.02 0.19 0.21 (0.23) -- (0.23) 7.69 2.79 8,738
<S> <C> <C> <C> <C>
6/15/94-
9/30/94(3)..... 2.15%(4) 0.93%(4) 18% $ NA
9/30/95......... 2.15 1.36 169 NA
9/30/96......... 2.15 0.84 103 0.0074
3/31/97(6)...... 2.14(4) 0.60(4) 30 0.0152
CLASS B
6/16/94-
9/30/94(3)..... $6.94 $0.01 $(0.05) $(0.04) $ -- $ -- $ -- $6.90 (0.58)% $13,532
9/30/95......... 6.90 0.05 0.36 0.41 (0.01) -- (0.01) 7.30 5.91 13,976
9/30/96......... 7.30 0.02 0.70 0.72 (0.38) -- (0.38) 7.64 10.21 16,112
3/31/97(6)...... 7.64 -- 0.20 0.20 (0.19) -- (0.19) 7.65 2.60 15,267
6/16/94-
9/30/94(3)..... 2.80%(4) 0.33%(4) 18% $ NA
9/30/95......... 2.80 0.75 169 NA
9/30/96......... 2.80 0.21 103 0.0074
3/31/97(6)...... 2.79(4) (0.04)(4) 30 0.0152
- --------------------------------------------------------------------------------
GROWTH AND INCOME FUND
<CAPTION>
NET
GAIN(LOSS)
ON INVEST- TOTAL DIVIDENDS DISTRI-
NET ASSET NET MENTS (BOTH FROM FROM NET BUTIONS NET ASSET NET ASSETS
VALUE, INVEST- REALIZED INVEST- INVEST- FROM TOTAL VALUE, END OF
PERIOD BEGINNING MENT AND MENT MENT CAPITAL DISTRI- END OF TOTAL PERIOD
ENDED OF PERIOD INCOME(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2) (000'S)
- ---------------- --------- --------- ----------- ---------- --------- ------- ------- --------- --------- ----------
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME AVERAGE
PERIOD TO AVERAGE TO AVERAGE PORTFOLIO COMMISSION
ENDED NET ASSETS(5) NET ASSETS(5) TURNOVER PER SHARE@
- ---------------- ------------- ------------- --------- ----------
CLASS A
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/01/94-
9/30/94(3)..... $7.33 $0.07 $ 0.10 $ 0.17 $(0.06) $ -- $(0.06) $7.44 2.34% $ 3,098
9/30/95......... 7.44 0.32 1.08 1.40 (0.30) (0.15) (0.45) 8.39 19.53 3,532
9/30/96......... 8.39 0.14 2.50 2.64 (0.17) (0.39) (0.56) 10.47 32.59 21,099
3/31/97(6)...... 10.47 0.04 0.85 0.89 (0.03) (0.44) (0.47) 10.89 8.64 36,391
<S> <C> <C> <C> <C>
7/01/94-
9/30/94(3)..... 1.50%(4) 3.48%(4) 8% $ NA
9/30/95......... 0.46 4.16 230 NA
9/30/96......... 0.96 1.52 161 0.0600
3/31/97(6)...... 1.29(4) 0.77(4) 94 0.0600
CLASS B
7/06/94-
9/30/94(3)..... $7.33 $0.05 $ 0.11 $ 0.16 $(0.05) $ -- $(0.05) $7.44 2.19% $ 229
9/30/95......... 7.44 0.35 1.03 1.38 (0.28) (0.15) (0.43) 8.39 19.19 2,538
9/30/96......... 8.39 0.08 2.50 2.58 (0.13) (0.39) (0.52) 10.45 31.75 13,903
3/31/97(6)...... 10.45 -- 0.85 0.85 (0.01) (0.44) (0.45) 10.85 8.34 30,661
7/06/94-
9/30/94(3)..... 2.15%(4) 2.86%(4) 8% $ NA
9/30/95......... 0.30 4.48 230 NA
9/30/96......... 1.58 0.73 161 0.0600
3/31/97(6)...... 1.94(4) 0.08(4) 94 0.0600
</TABLE>
- ------------
@ The average commission per share is derived by taking the agency commissions
paid on equity securities trades and dividing by the number of shares
purchased or sold.
(1) Calculated based upon average shares outstanding
(2) Total return is not annualized and does not reflect sales load
(3) Commencement of sale of respective class of shares
(4) Annualized
(5) Net of the following expense reimbursements (based on average net assets):
<TABLE>
<CAPTION>
9/30/94 9/30/95 9/30/96 3/31/97
------- ------- ------- -------
<S> <C> <C> <C> <C>
Global Balanced Class A...................... 1.14% .40% .44% 0.32%
Global Balanced Class B...................... .93 .45 .41 0.29
Growth and Income Class A.................... 4.48 2.96 1.01 0.32
Growth and Income Class B.................... 20.35 5.07 1.14 0.33
</TABLE>
(6) Unaudited
See Notes to Financial Statements
11
<PAGE>
SUNAMERICA BALANCED ASSETS FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1997 (unaudited)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- -----------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK--63.3%
AEROSPACE & MILITARY TECHNOLOGY--1.0%
Boeing Co. ............................................ 31,890 $ 3,145,151
------------
APPAREL & TEXTILES--0.7%
NIKE, Inc., Class B.................................... 20,000 1,240,000
Tommy Hilfiger Corp.+.................................. 20,000 1,045,000
------------
2,285,000
------------
AUTOMOTIVE--1.6%
Chrysler Corp. ........................................ 30,000 900,000
Ford Motor Co. ........................................ 40,000 1,255,000
General Motors Corp. .................................. 25,000 1,384,375
Goodyear Tire & Rubber Co. ............................ 25,000 1,306,250
------------
4,845,625
------------
BANKS--5.9%
Bank Of Boston Corp. .................................. 20,000 1,340,000
BankAmerica Corp. ..................................... 15,000 1,511,250
Chase Manhattan Corp. ................................. 20,000 1,872,500
Citicorp. ............................................. 15,000 1,623,750
Fleet Financial Group, Inc. ........................... 40,000 2,290,000
Hibernia Corp. ........................................ 100,000 1,312,500
NationsBank Corp. ..................................... 40,000 2,215,000
Summit Bancorp. ....................................... 130,000 5,687,500
------------
17,852,500
------------
BUSINESS SERVICES--1.4%
American Express Co. .................................. 70,000 4,191,250
------------
CHEMICALS--2.2%
du Pont (E.I.) de Nemours & Co. ....................... 30,000 3,180,000
Monsanto Co. .......................................... 55,000 2,103,750
Morton International, Inc. ............................ 35,000 1,478,750
------------
6,762,500
------------
COMMUNICATION EQUIPMENT--2.3%
Ericsson (L.M.) Telephone Co., Class B ADR(1).......... 50,000 1,690,625
Nokia Corp., Class A ADR(1)............................ 30,000 1,747,500
Octel Communications Corp.+............................ 70,000 1,111,250
Tellabs, Inc.+......................................... 70,000 2,528,750
------------
7,078,125
------------
COMPUTERS & BUSINESS EQUIPMENT--1.5%
Compaq Computer, Corp.+................................ 25,000 1,915,625
International Business Machines Corp. ................. 20,000 2,747,500
------------
4,663,125
------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
CONGLOMERATE--2.7%
General Electric Co. ..................................... 25,000 $ 2,481,250
Republic Industries, Inc.+................................ 30,000 1,040,625
Schlumberger Ltd. ........................................ 15,000 1,608,750
United Technologies Corp.................................. 40,000 3,010,000
------------
8,140,625
------------
DEPARTMENT STORES--1.8%
Wal-Mart Stores, Inc. .................................... 100,000 2,787,500
Woolworth Corp.+.......................................... 110,000 2,571,250
------------
5,358,750
------------
ELECTRONICS--4.1%
Diebold, Inc. ............................................ 37,500 1,410,937
Intel Corp. .............................................. 20,000 2,782,500
Micron Technology, Inc. .................................. 30,000 1,214,175
Motorola, Inc. ........................................... 30,000 1,825,125
Rockwell International Corp. ............................. 45,000 2,919,375
Texas Instruments, Inc. .................................. 30,000 2,246,250
------------
12,398,362
------------
ENERGY SERVICES--2.7%
Exxon Corp. .............................................. 15,000 1,616,250
Mobil Corp. .............................................. 30,000 3,918,750
Royal Dutch Petroleum Co. ................................ 15,000 2,625,000
------------
8,160,000
------------
ENERGY SOURCES--1.7%
Halliburton Co. .......................................... 30,000 2,032,500
Texaco, Inc. ............................................. 30,000 3,285,000
------------
5,317,500
------------
FINANCIAL SERVICES--6.1%
Alex Brown, Inc. ......................................... 30,000 1,275,000
Capital One Financial Corp. .............................. 80,000 2,980,000
Dean Witter, Discover & Co. .............................. 70,000 2,441,250
Morgan Stanley Group, Inc. ............................... 40,000 2,350,000
Nationwide Financial Services, Inc. ...................... 45,000 1,158,750
Paine Webber Group, Inc. ................................. 45,000 1,271,250
ReliaStar Financial Corp. ................................ 60,000 3,547,500
Travelers Group, Inc. .................................... 45,000 2,154,375
Wells Fargo & Co. ........................................ 5,000 1,420,625
------------
18,598,750
------------
FOOD, BEVERAGE & TOBACCO--2.2%
McDonald's Corp. ......................................... 67,000 3,165,750
Philip Morris Cos., Inc. ................................. 30,000 3,423,750
------------
6,589,500
------------
</TABLE>
12
<PAGE>
SUNAMERICA BALANCED ASSETS FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
FOREST PRODUCTS--0.5%
Kimberly-Clark Corp. ..................................... 15,000 $ 1,490,625
------------
HEALTH SERVICES--2.1%
Apria Healthcare Group, Inc.+............................. 60,000 1,087,500
Columbia/HCA Healthcare Corp. ............................ 70,000 2,353,750
United Healthcare Corp. .................................. 60,000 2,857,500
------------
6,298,750
------------
HOUSEHOLD PRODUCTS--1.8%
Fort Howard Corp.+........................................ 45,000 1,400,625
Procter & Gamble Co. ..................................... 20,000 2,300,000
Warner-Lambert Co. ....................................... 20,000 1,730,000
------------
5,430,625
------------
INSURANCE--3.2%
Aetna, Inc. .............................................. 31,738 2,725,501
Allstate Corp. ........................................... 83,000 4,928,125
Equitable Cos., Inc. ..................................... 75,000 2,043,750
------------
9,697,376
------------
LEISURE & TOURISM--1.7%
Carnival Corp. Class A.................................... 40,000 1,480,000
Disney (Walt) Co. ........................................ 25,000 1,825,000
MGM Grand, Inc.+.......................................... 54,400 1,972,000
------------
5,277,000
------------
MEDICAL PRODUCTS--2.0%
Amgen, Inc.+.............................................. 25,000 1,396,875
Biogen, Inc.+............................................. 25,000 934,375
Cephalon, Inc.+........................................... 75,000 1,575,000
Johnson & Johnson Co. .................................... 30,000 1,586,250
United States Surgical Corp. ............................. 20,000 610,000
------------
6,102,500
------------
METALS & MINING--1.6%
Aluminum Co. of America................................... 40,000 2,720,000
Crown, Cork & Seal, Inc. ................................. 33,000 1,703,625
Martin Marietta Materials, Inc. .......................... 22,000 566,500
------------
4,990,125
------------
PHARMACEUTICALS--5.1%
Bristol-Myers Squibb Co. ................................. 40,000 2,360,000
Chiron Corp.+............................................. 60,000 1,117,500
Lilly (Eli) & Co. ........................................ 20,000 1,645,000
Merck & Co., Inc. ........................................ 25,000 2,106,250
Neurex Corp.+............................................. 115,000 1,365,625
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
<S> <C> <C>
PHARMACEUTICALS (CONTINUED)
Novartis AG..................................... 35,000 $ 2,169,548
Pfizer, Inc. ................................... 10,000 841,250
Schering-Plough Corp. .......................... 25,000 1,818,750
Teva Pharmaceutical Industries Ltd. ADR(1)...... 40,000 2,220,000
------------
15,643,923
------------
POLLUTION CONTROL--1.4%
Browning-Ferris Industries, Inc. ............... 50,000 1,443,750
United States Filter Corp.+..................... 55,000 1,698,125
USA Waste Services, Inc.+....................... 35,000 1,242,500
------------
4,384,375
------------
REAL ESTATE INVESTMENT TRUSTS--0.2%
Liberty Property Trust.......................... 20,000 490,000
------------
SOFTWARE--0.9%
Microsoft Corp.+................................ 30,000 2,750,625
------------
SPECIALTY RETAIL--2.3%
CVS Corp. ...................................... 50,000 2,306,250
Harcourt General, Inc. ......................... 35,000 1,627,500
Home Depot, Inc. ............................... 60,000 3,210,000
------------
7,143,750
------------
TELECOMMUNICATIONS--2.1%
AT&T Corp. ..................................... 70,000 2,432,500
Lucent Technologies, Inc. ...................... 78,102 4,119,881
------------
6,552,381
------------
TRANSPORTATION--0.5%
Continental Airlines, Inc.,
Class B+....................................... 45,000 1,411,875
------------
TOTAL COMMON STOCK
(COST $178,005,547)............................. 193,050,693
------------
BONDS & NOTES--8.9%
AEROSPACE & MILITARY TECHNOLOGY--1.3%
Lockheed Martin Corp.
7.25% due 5/15/06............................... $ 4,000 3,939,160
------------
AUTOMOTIVE--3.2%
Chrysler Corp.
7.45% due 3/01/27............................... 5,000 4,735,500
Ford Motor Credit Co.
8.00% due 6/15/02............................... 5,000 5,163,700
------------
9,899,200
------------
</TABLE>
13
<PAGE>
SUNAMERICA BALANCED ASSETS FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
BONDS & NOTES (CONTINUED)
BANKS--0.7%
Chase Manhattan Corp.
Subordinated Note...............................
7.88% due 8/01/04............................... $ 2,000 $ 1,991,060
------------
FINANCIAL SERVICES--3.7%
Bear Stearns Cos., Inc.
6.63% due 1/15/04............................... 5,000 4,791,100
DLJ Mortgage Acceptance Corp.
7.35% due 9/18/03............................... 4,628 4,606,170
Donaldson Lufkin & Jenrette, Inc.
6.88% due 11/01/05.............................. 2,000 1,892,680
------------
11,289,950
------------
TOTAL BONDS & NOTES
(COST $27,360,600).............................. 27,119,370
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--1.1%
6.50% due 9/01/10
(cost $3,375,491)............................... 3,453 3,335,005
------------
U.S. TREASURY NOTES--17.0%
5.75% due 10/31/97.............................. 5,000 4,996,850
6.25% due 3/31/99............................... 15,000 14,948,400
6.50% due 10/15/06.............................. 10,000 9,689,100
6.88% due 7/31/99-3/31/00....................... 10,000 10,071,850
7.25% due 8/15/04............................... 12,000 12,253,125
------------
TOTAL U.S. TREASURY NOTES
(COST $52,674,322).............................. 51,959,325
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
<S> <C> <C>
U.S. TREASURY BONDS--7.6%
6.63% due 2/15/27.............................. $12,500 $ 11,761,750
11.25% due 2/15/15............................. 8,000 11,248,720
-------------
TOTAL U.S. TREASURY BONDS
(COST $24,063,830)............................. 23,010,470
-------------
TOTAL INVESTMENT SECURITIES--97.9%
(COST $285,479,790)............................ 298,474,863
-------------
REPURCHASE AGREEMENT--3.9%
Joint Repurchase Agreement Account (Note 2)
(cost $11,942,000)............................ 11,942 11,942,000
-------------
TOTAL INVESTMENTS--
(COST $297,421,790)............................ 101.8% 310,416,863
Liabilities in excess of other assets........... (1.8) (5,599,932)
------- -------------
NET ASSETS-- 100.0% $ 304,816,931
====== =============
</TABLE>
- --------
+Non-income producing security
(1)ADR ("American Depositary Receipt")
See Notes to Financial Statements
14
<PAGE>
SUNAMERICA BLUE CHIP GROWTH FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1997 (unaudited)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- -----------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK--94.0%
AEROSPACE & MILITARY TECHNOLOGY--1.2%
Boeing Co. .............................................. 10,630 $ 1,048,384
-----------
APPAREL & TEXTILES--2.0%
NIKE, Inc., Class B...................................... 10,000 620,000
Stride Rite Corp. ....................................... 40,000 600,000
Tommy Hilfiger Corp.+.................................... 10,000 522,500
-----------
1,742,500
-----------
AUTOMOTIVE--2.2%
Chrysler Corp. .......................................... 20,000 600,000
Ford Motor Co. .......................................... 15,000 470,625
General Motors Corp. .................................... 15,000 830,625
-----------
1,901,250
-----------
BANKS--7.7%
BankAmerica Corp. ....................................... 5,000 503,750
Chase Manhattan Corp. ................................... 5,000 468,125
Citicorp. ............................................... 10,000 1,082,500
Fleet Financial Group, Inc. ............................. 15,000 858,750
Hibernia Corp. .......................................... 70,000 918,750
NationsBank Corp. ....................................... 26,000 1,439,750
Summit Bancorp. ......................................... 30,000 1,312,500
-----------
6,584,125
-----------
BUSINESS SERVICES--2.1%
American Express Co. .................................... 30,000 1,796,250
-----------
CHEMICALS--2.6%
du Pont (E.I.) de Nemours & Co. ......................... 10,000 1,060,000
Monsanto Co. ............................................ 15,000 573,750
Morton International, Inc. .............................. 15,000 633,750
-----------
2,267,500
-----------
COMMUNICATION EQUIPMENT--4.0%
Ericsson (L.M.) Telephone Co., Class B ADR(1)............ 20,000 676,250
Nokia Corp., Class A ADR(1).............................. 20,000 1,165,000
Octel Communications Corp.+.............................. 30,000 476,250
Tellabs, Inc.+........................................... 30,000 1,083,750
-----------
3,401,250
-----------
COMPUTERS & BUSINESS EQUIPMENT--4.2%
Compaq Computer, Corp.+.................................. 15,000 1,149,375
Hewlett-Packard Co. ..................................... 20,000 1,065,000
International Business Machines Corp. ................... 10,000 1,373,750
-----------
3,588,125
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
CONGLOMERATE--4.1%
General Electric Co. ....................................... 10,000 $ 992,500
Republic Industries, Inc.+.................................. 10,000 346,875
Schlumberger Ltd. .......................................... 10,000 1,072,500
United Technologies Corp. .................................. 15,000 1,128,750
-----------
3,540,625
-----------
DEPARTMENT STORES--1.8%
Wal-Mart Stores, Inc. ...................................... 30,000 836,250
Woolworth Corp.+............................................ 30,000 701,250
-----------
1,537,500
-----------
ELECTRONICS--6.1%
Diebold, Inc. .............................................. 15,000 564,375
Intel Corp. ................................................ 10,000 1,391,250
Micron Technology, Inc. .................................... 15,000 607,088
Motorola, Inc. ............................................. 15,000 912,562
Rockwell International Corp. ............................... 10,000 648,750
Texas Instruments, Inc. .................................... 15,000 1,123,125
-----------
5,247,150
-----------
ENERGY SERVICES--3.2%
Exxon Corp. ................................................ 5,000 538,750
Mobil Corp. ................................................ 10,000 1,306,250
Royal Dutch Petroleum Co. .................................. 5,000 875,000
-----------
2,720,000
-----------
ENERGY SOURCES--3.5%
Halliburton Co. ............................................ 20,000 1,355,000
Pogo Producing Co. ......................................... 15,000 540,000
Texaco, Inc. ............................................... 10,000 1,095,000
-----------
2,990,000
-----------
ENTERTAINMENT PRODUCTS--0.8%
Mattel, Inc. ............................................... 30,000 720,000
-----------
FINANCIAL SERVICES--7.9%
Alex Brown, Inc. ........................................... 10,000 425,000
Capital One Financial Corp. ................................ 30,000 1,117,500
Dean Witter, Discover & Co. ................................ 25,000 871,875
Morgan Stanley Group, Inc. ................................. 10,000 587,500
Nationwide Financial Services, Inc. ........................ 30,000 772,500
Paine Webber Group, Inc. ................................... 30,000 847,500
ReliaStar Financial Corp. .................................. 20,000 1,182,500
Travelers Group, Inc. ...................................... 20,000 957,500
-----------
6,761,875
-----------
FOOD, BEVERAGE & TOBACCO--2.4%
McDonald's Corp. ........................................... 20,000 945,000
Philip Morris Cos., Inc. ................................... 10,000 1,141,250
-----------
2,086,250
-----------
</TABLE>
15
<PAGE>
SUNAMERICA BLUE CHIP GROWTH FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
FOREST PRODUCTS--1.2%
Kimberly-Clark Corp. ....................................... 10,000 $ 993,750
-----------
HEALTH SERVICES--3.0%
Apria Healthcare Group, Inc.+............................... 30,000 543,750
Columbia/HCA Healthcare Corp. .............................. 22,000 739,750
Health Management Associates+............................... 15,000 356,250
United Healthcare Corp. .................................... 20,000 952,500
-----------
2,592,250
-----------
HOUSEHOLD PRODUCTS--1.7%
Procter & Gamble Co. ....................................... 5,000 575,000
Warner-Lambert Co. ......................................... 10,000 865,000
-----------
1,440,000
-----------
INSURANCE--5.6%
Aetna, Inc. ................................................ 18,369 1,577,438
Allstate Corp. ............................................. 25,000 1,484,375
Equitable Cos., Inc. ....................................... 30,000 817,500
TIG Holdings, Inc.+......................................... 30,000 952,500
-----------
4,831,813
-----------
LEISURE & TOURISM--2.3%
Carnival Corp., Class A..................................... 20,000 740,000
Family Golf Ctrs Inc. ...................................... 28,000 547,750
MGM Grand, Inc.+............................................ 20,000 725,000
-----------
2,012,750
-----------
MEDICAL PRODUCTS--3.0%
Amgen, Inc.+................................................ 13,000 726,375
Biogen, Inc.+............................................... 15,000 560,625
Cephalon, Inc.+............................................. 20,000 420,000
Johnson & Johnson Co. ...................................... 10,000 528,750
United States Surgical Corp. ............................... 10,000 305,000
-----------
2,540,750
-----------
METALS & MINING--2.5%
Aluminum Co. of America..................................... 15,000 1,020,000
Crown, Cork & Seal, Inc. ................................... 14,000 722,750
Martin Marietta Materials, Inc. ............................ 14,000 360,500
-----------
2,103,250
-----------
PHARMACEUTICALS--9.1%
Bristol-Myers Squibb Co. ................................... 20,000 1,180,000
Chiron Corp.+............................................... 30,000 558,750
IDEC Pharmaceuticals Corp.+................................. 35,000 833,437
Lilly (Eli) & Co. .......................................... 10,000 822,500
Merck & Co., Inc. .......................................... 10,000 842,500
Neurex Corp.+............................................... 80,000 950,000
Novartis AG................................................. 10,000 619,871
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
<S> <C> <C>
PHARMACEUTICALS (CONTINUED)
Pfizer, Inc. .................................... 5,000 $ 420,625
Schering-Plough Corp. ........................... 10,000 727,500
Teva Pharmaceutical Industries
Ltd. ADR(1)..................................... 15,000 832,500
-----------
7,787,683
-----------
POLLUTION CONTROL--1.5%
United States Filter Corp. ...................... 20,000 617,500
USA Waste Services, Inc.+........................ 20,000 710,000
-----------
1,327,500
-----------
SOFTWARE--1.1%
Microsoft Corp.+................................. 10,000 916,875
-----------
SPECIALTY RETAIL--3.8%
CVS Corp. ....................................... 20,000 922,500
Harcourt General, Inc. .......................... 15,000 697,500
Home Depot, Inc. ................................ 30,000 1,605,000
-----------
3,225,000
-----------
TELECOMMUNICATIONS--2.9%
AT&T Corp. ...................................... 25,000 868,750
Lucent Technologies, Inc. ....................... 30,000 1,582,500
-----------
2,451,250
-----------
TRANSPORTATION--0.5%
Continental Airlines, Inc., Class B+............. 15,000 470,625
-----------
TOTAL COMMON STOCK
(COST $77,558,861)............................... 80,626,280
-----------
TOTAL INVESTMENT SECURITIES--94.0%
(COST $77,558,861)............................... 80,626,280
-----------
REPURCHASE AGREEMENT--8.7%
Joint Repurchase Agreement Account (Note 2)
(cost $7,498,000)............................... $ 7,498 7,498,000
-----------
TOTAL INVESTMENTS--
(cost $85,056,861)............................... 102.7% 88,124,280
Liabilities in excess of other assets............. (2.7) (2,302,096)
------- -----------
NET ASSETS-- 100.0% $85,822,184
======= ===========
</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, 1997 (unaudited)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- ------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK--93.1%
AEROSPACE & MILITARY TECHNOLOGY--3.6%
BE Aerospace, Inc.+....................................... 20,000 $ 490,000
Boeing Co. ............................................... 5,252 517,978
REMEC, Inc.+.............................................. 37,500 806,250
-----------
1,814,228
-----------
APPAREL & TEXTILES--5.3%
Authentic Fitness Corp. .................................. 30,000 442,500
Gucci Group NV ADR(1)..................................... 9,000 649,125
Jones Apparel Group, Inc.+................................ 10,000 371,250
Pacific Sunwear of California+............................ 13,500 442,125
Stride Rite Corp. ........................................ 20,000 300,000
TJX Cos., Inc. ........................................... 11,600 495,900
-----------
2,700,900
-----------
AUTOMOTIVE--1.6%
Brunswick Corp. .......................................... 30,000 806,250
-----------
BANKS--4.4%
First Commerce Corp. ..................................... 10,000 405,000
FirstFed Financial Corp. Delaware......................... 20,000 470,000
Hibernia Corp. ........................................... 30,000 393,750
PNC Bank Corp. ........................................... 15,000 600,000
Summit Bancorp. .......................................... 8,000 350,000
-----------
2,218,750
-----------
BROADCASTING & MEDIA--1.8%
Mecklermedia Corp.+....................................... 10,900 261,600
New York Times Co., Class A............................... 15,000 661,875
-----------
923,475
-----------
BUSINESS SERVICES--3.2%
American Express Co. ..................................... 10,000 598,750
Applied Graphics Technologies+............................ 15,100 534,163
Federal Express Corp.+.................................... 10,000 521,250
-----------
1,654,163
-----------
CHEMICALS--4.3%
Air Products & Chemicals, Inc. ........................... 5,000 339,375
Betz Laboratories, Inc. .................................. 10,000 631,250
Monsanto Co. ............................................. 10,000 382,500
Nalco Chemical Co. ....................................... 10,000 373,750
Praxair, Inc. ............................................ 10,000 448,750
-----------
2,175,625
-----------
COMMUNICATION EQUIPMENT--0.6%
Tellabs, Inc.+............................................ 8,000 289,000
-----------
COMPUTERS & BUSINESS EQUIPMENT--0.2%
Micron Electronics, Inc.+................................. 5,000 95,625
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
CONGLOMERATE--1.9%
Tyco International Ltd. .................................... 18,000 $ 990,000
-----------
DEPARTMENT STORES--0.9%
Penney (J.C.) Co, Inc. ..................................... 10,000 476,250
-----------
ELECTRONICS--3.6%
Exabyte Corp.+.............................................. 20,000 242,500
Jabil Circuit, Inc.+........................................ 10,000 450,625
National Semiconductor Corp.+............................... 15,000 412,500
Rockwell International Corp. ............................... 8,000 519,000
Veeco Instruments, Inc.+.................................... 7,000 205,625
-----------
1,830,250
-----------
ENERGY SERVICES--1.1%
Global Marine, Inc.+........................................ 15,000 322,500
Rowan Cos., Inc.+........................................... 10,000 226,250
-----------
548,750
-----------
FINANCIAL SERVICES--5.5%
Associates First Capital Corp. ............................. 10,000 430,000
Bay View Capital Corp. ..................................... 10,000 510,000
Commercial Federal Corp. ................................... 20,000 675,000
Merrill Lynch & Co., Inc. .................................. 3,000 257,625
Nationwide Financial Services, Inc. ........................ 10,000 257,500
Raymond James Financial, Inc. .............................. 10,000 316,250
Salomon, Inc. .............................................. 7,000 349,125
-----------
2,795,500
-----------
FOOD, BEVERAGE & TOBACCO--3.4%
Coca Cola Enterprises, Inc. ................................ 20,000 1,147,500
Flowers Industries, Inc. ................................... 25,000 571,875
-----------
1,719,375
-----------
FOREST PRODUCTS--1.2%
Sealed Air Corp.+........................................... 8,500 349,563
Silgan Holdings, Inc.+...................................... 10,000 250,000
-----------
599,563
-----------
HEALTH SERVICES--0.7%
HEALTHSOUTH Corp.+.......................................... 20,000 382,500
-----------
HOUSEHOLD PRODUCTS--4.8%
Amway Asia Pacific Ltd. .................................... 20,000 752,500
Corning, Inc. .............................................. 10,000 443,750
Fort Howard Corp.+.......................................... 15,300 476,212
Scotts Co.+................................................. 15,000 345,000
Warner-Lambert Co. ......................................... 5,000 432,500
-----------
2,449,962
-----------
</TABLE>
17
<PAGE>
SUNAMERICA MID-CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
INSURANCE--8.0%
Aetna, Inc. ............................................... 12,000 $ 1,030,500
Allmerica Financial Corp. ................................. 10,000 351,250
Allstate Corp. ............................................ 10,000 593,750
Chubb Corp. ............................................... 10,000 538,750
Conseco, Inc. ............................................. 10,000 356,250
Protective Life Corp. ..................................... 5,000 210,000
Provident Co., Inc. ....................................... 5,000 273,750
UNUM Corp. ................................................ 10,000 730,000
-----------
4,084,250
-----------
LEISURE & TOURISM--0.7%
Disney (Walt) Co. ......................................... 5,000 365,000
-----------
MACHINERY--2.7%
Flanders Corp.+(2)(3)...................................... 100,000 843,750
Precision Castparts Corp. ................................. 10,000 510,000
-----------
1,353,750
-----------
METALS & MINING--2.2%
Crown, Cork & Seal, Inc. .................................. 9,000 464,625
EASCO, Inc. ............................................... 80,000 640,000
-----------
1,104,625
-----------
PHARMACEUTICALS--6.2%
Bristol-Myers Squibb Co. .................................. 6,000 354,000
Glaxo Wellcome PLC ADR(1).................................. 10,000 353,750
Lilly (Eli) & Co. ......................................... 5,000 411,250
Merck & Co., Inc. ......................................... 7,000 589,750
Teva Pharmaceutical Industries Ltd. ADR(1)................. 26,500 1,470,750
-----------
3,179,500
-----------
POLLUTION CONTROL--3.9%
Philip Environmental, Inc.+................................ 30,000 453,750
United Waste Systems, Inc.+................................ 30,000 1,117,500
USA Waste Services, Inc.+.................................. 12,000 426,000
-----------
1,997,250
-----------
REAL ESTATE INVESTMENT TRUSTS--6.0%
Bay Apartment Communities, Inc. ........................... 15,000 538,125
Crescent Real Estate Equities.............................. 20,000 535,000
Innkeepers USA Trust....................................... 45,000 658,125
Starwood Lodging Trust..................................... 22,500 877,500
Weingarten Realty Investors................................ 10,000 423,750
-----------
3,032,500
-----------
RESTAURANTS--0.6%
Starbucks Corp.+........................................... 10,000 296,250
-----------
SOFTWARE--2.9%
Adobe Systems, Inc. ....................................... 10,000 401,250
Baan Co. NV+............................................... 10,000 446,250
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
SOFTWARE (CONTINUED)
BMC Software, Inc.+....................................... 10,000 $ 461,250
Novell, Inc.+............................................. 20,000 190,000
-----------
1,498,750
-----------
SPECIALTY RETAIL--7.2%
CVS Corp. ................................................ 18,000 830,250
Footstar, Inc.+........................................... 18,000 533,250
MacFrugals Bargains Close-Outs, Inc.+..................... 25,000 662,500
Michaels Stores, Inc.+.................................... 25,000 459,375
Samsonite Corp.+.......................................... 27,000 1,167,750
-----------
3,653,125
-----------
TELECOMMUNICATIONS--1.3%
Lucent Technologies, Inc. ................................ 7,000 369,250
Teleport Communications Group,
Class A+................................................. 14,000 322,000
-----------
691,250
-----------
TRANSPORTATION--1.6%
Caliber System, Inc. ..................................... 10,000 265,000
Consolidated Freightways, Inc. ........................... 20,000 542,500
-----------
807,500
-----------
UTILITIES--1.7%
El Paso Natural Gas Co. .................................. 15,000 849,375
-----------
TOTAL COMMON STOCK
(COST $42,815,524)........................................ 47,383,291
-----------
WARRANTS--0.7%
ELECTRONICS--0.7%
Intel Corp.
(cost $255,938).......................................... 3,500 346,938
-----------
TOTAL INVESTMENT SECURITIES--93.8%
(cost $43,071,462)........................................ 47,730,229
-----------
TOTAL INVESTMENTS--
(COST $43,071,462)........................................ 93.8% 47,730,229
Other assets less liabilities.............................. 6.2 3,158,301
------ -----------
NET ASSETS-- 100.0% $50,888,530
====== ===========
</TABLE>
- --------
+ Non-income producing security
(1) ADR ("American Depositary Receipts")
(2) Fair valued security, see Note 2
(3) At March 31, 1997 the Fund held a restricted security amounting to 1.7% of
net assets. The Fund will not bear any costs, including those involved in
registration under the Securities Act of 1933, in the connection with the
disposition of the securities.
<TABLE>
<CAPTION>
DATE OF UNIT VALUATION AS OF
DESCRIPTION ACQUISITION COST MARCH 31, 1997
-------------- ----------- ----- ---------------
<S> <C> <C> <C>
Flanders Corp. 5/09/96 $5.00 $8.44
</TABLE>
See Notes to Financial Statements
18
<PAGE>
SUNAMERICA SMALL COMPANY GROWTH FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1997 (unaudited)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- -----------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK--91.0%
AEROSPACE & MILITARY TECHNOLOGY--2.1%
BE Aerospace, Inc.+.................................... 55,000 $ 1,347,500
REMEC, Inc.+........................................... 158,500 3,407,750
------------
4,755,250
------------
APPAREL & TEXTILES--5.3%
Authentic Fitness Corp. ............................... 60,000 885,000
Gucci Group NV ADR(1).................................. 15,000 1,081,875
Jones Apparel Group, Inc.+............................. 20,000 742,500
North Face, Inc.+...................................... 46,500 773,063
Pacific Sunwear of California+......................... 41,250 1,350,937
Quiksilver, Inc.+...................................... 50,000 1,187,500
Stage Stores, Inc.+.................................... 21,200 466,400
Stride Rite Corp. ..................................... 135,000 2,025,000
TJX Cos., Inc. ........................................ 38,400 1,641,600
Warnaco Group, Inc. Class A............................ 55,000 1,636,250
------------
11,790,125
------------
BANKS--7.8%
First American Corp. (Tennessee)....................... 72,500 4,612,812
First Commerce Corp. .................................. 42,000 1,701,000
First Tennessee National Corp. ........................ 30,000 1,267,500
FirstFed Financial Corp. Delaware...................... 30,000 705,000
Hamilton Bancorp, Inc. ................................ 65,000 1,121,250
Hibernia Corp., Class A................................ 55,000 721,875
Long Island Bancorp, Inc. ............................. 55,000 1,818,438
PNC Bank Corp. ........................................ 39,500 1,580,000
Summit Bancorp. ....................................... 46,500 2,034,375
U.S. Bancorp .......................................... 35,000 1,872,500
------------
17,434,750
------------
BROADCASTING & MEDIA--2.1%
Mecklermedia Corp.+.................................... 148,600 3,566,400
Yahoo, Inc.+........................................... 35,000 984,375
------------
4,550,775
------------
BUSINESS SERVICES--6.1%
Administaff, Inc.+..................................... 87,500 1,454,688
America Online, Inc.+.................................. 20,000 847,500
Applied Graphics Technologies+......................... 45,500 1,609,562
Datamark Holdings, Inc.+............................... 290,323 2,177,422
NCO Group, Inc.+....................................... 78,200 1,710,625
ProSoft Development, Inc.+............................. 260,000 3,900,000
ProSoft Development, Inc.+(2)(3)....................... 100,000 1,050,000
Vincam Group, Inc.+.................................... 30,000 821,250
------------
13,571,047
------------
CHEMICALS--2.2%
Betz Laboratories, Inc. ............................... 28,100 1,773,813
Fuller (H. B.) Co. .................................... 25,000 1,218,750
Nalco Chemical Co. .................................... 52,000 1,943,500
------------
4,936,063
------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
COMMUNICATION EQUIPMENT--3.1%
ANADIGICS, Inc.+.......................................... 77,500 $ 2,092,500
Digital Microwave Corp.+.................................. 18,700 359,975
DSP Communications, Inc.+................................. 67,500 649,688
QUALCOMM, Inc.+........................................... 30,000 1,691,250
Tele-Communications Liberty Media Group, Series A+........ 50,000 996,875
Tellabs, Inc.+............................................ 33,500 1,210,187
------------
7,000,475
------------
COMPUTERS & BUSINESS EQUIPMENT--3.3%
Accent Color Sciences, Inc.+.............................. 20,000 102,500
CHS Electronics, Inc.+.................................... 65,000 1,324,375
Data General Corp.+....................................... 30,000 510,000
Hutchinson Technology, Inc.+.............................. 34,000 969,000
Linear Technology Corp.................................... 55,000 2,433,750
Micron Electronics, Inc.+................................. 35,000 669,375
Micron Technology, Inc.................................... 20,000 810,000
Splash Technology Holdings, Inc.+......................... 20,000 500,000
------------
7,319,000
------------
CONSTRUCTION & HOUSING--0.6%
Chicago Bridge And Iron Co. NV ........................... 70,000 1,242,500
------------
DEPARTMENT STORES--0.9%
Penney (J.C.) Co, Inc. ................................... 40,000 1,905,000
------------
ELECTRONICS--5.5%
Advanced Micro Devices, Inc.+............................. 50,000 2,075,000
California Micro Devices Corp.+........................... 207,500 1,530,312
Diebold, Inc.............................................. 18,750 705,469
Exabyte Corp.+............................................ 55,000 666,875
Jabil Circuit, Inc.+...................................... 20,000 901,250
LSI Logic Corp.+.......................................... 30,000 1,042,500
Micrel, Inc.+............................................. 10,000 290,000
Motorola, Inc. ........................................... 10,500 633,938
Perkin-Elmer Corp. ....................................... 20,000 1,287,500
Photronics, Inc.+......................................... 5,000 146,875
Supertex, Inc.+........................................... 40,000 470,000
Veeco Instruments, Inc.+.................................. 46,000 1,351,250
Vitesse Semiconductor Corp.+.............................. 45,000 1,243,125
------------
12,344,094
------------
ENERGY SERVICES--5.7%
Diamond Offshore Drilling, Inc.+.......................... 17,600 1,205,600
ENSCO International, Inc.+................................ 42,500 2,093,125
Falcon Drilling Co., Inc.+................................ 60,000 2,220,000
Marine Drilling Co., Inc.+................................ 35,000 621,250
Noble Drilling Corp.+..................................... 137,500 2,371,875
Petroleum Geo-Services ASA ADR(1)+........................ 65,000 2,795,000
Reading & Bates Corp.+.................................... 65,000 1,470,625
------------
12,777,475
------------
</TABLE>
19
<PAGE>
SUNAMERICA SMALL COMPANY GROWTH FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
ENERGY SOURCES--1.2%
Edge Petroleum Corp. Delaware+............................ 74,000 $ 1,184,000
Pride Petroleum Services, Inc.+........................... 70,000 1,452,500
------------
2,636,500
------------
FINANCIAL SERVICES--5.9%
Alex Brown, Inc. ......................................... 30,000 1,275,000
Ameritrade Holding Corp., Class A+........................ 13,400 209,375
Bay View Capital Corp..................................... 50,000 2,550,000
Capital One Financial Corp. .............................. 12,100 450,725
Commercial Federal Corp. ................................. 30,000 1,012,500
E*TRADE Group, Inc.+...................................... 50,000 900,000
Edwards (A.G.), Inc. ..................................... 30,000 922,500
Legg Mason, Inc. ......................................... 23,200 980,200
Metris Cos, Inc.+......................................... 36,500 912,500
Nationwide Financial Services, Inc. Class A............... 85,300 2,196,475
Raymond James Financial, Inc. ............................ 55,000 1,739,375
------------
13,148,650
------------
FOOD, BEVERAGE & TOBACCO--0.8%
Flowers Industries, Inc. ................................. 80,000 1,830,000
------------
FOREST PRODUCTS--0.7%
Sealed Air Corp.+......................................... 17,000 699,125
Silgan Holdings, Inc.+.................................... 35,000 875,000
------------
1,574,125
------------
HEALTH SERVICES--1.1%
HEALTHSOUTH Corp.+........................................ 25,000 478,125
NovaCare, Inc.+........................................... 160,000 1,940,000
------------
2,418,125
------------
HOUSEHOLD PRODUCTS--1.7%
Fort Howard Corp.+........................................ 16,700 519,788
Scotts Co.+............................................... 85,600 1,968,800
Warner-Lambert Co. ....................................... 15,000 1,297,500
------------
3,786,088
------------
INSURANCE--3.4%
Conseco, Inc. ............................................ 10,000 356,250
Equitable of Iowa Cos. ................................... 60,000 3,000,000
Maxicare Health Plans, Inc.+.............................. 40,000 1,005,000
Penn Treaty American Corp.+............................... 70,000 1,820,000
Penn-America Group, Inc. ................................. 10,000 125,000
ReliaStar Financial Corp. ................................ 20,000 1,182,500
------------
7,488,750
------------
LEISURE & TOURISM--1.2%
CapStar Hotel Co.+........................................ 85,000 2,380,000
Interstate Hotels Co.+.................................... 10,000 282,500
------------
2,662,500
------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
MACHINERY--3.1%
Flanders Corp.+........................................... 151,700 $ 1,441,150
Flanders Corp.+(2)(3)..................................... 400,000 3,375,000
Precision Castparts Corp. ................................ 40,000 2,040,000
------------
6,856,150
------------
MANUFACTURING--0.2%
Zitel Corp.+.............................................. 15,000 451,875
------------
MEDICAL PRODUCTS--3.4%
Biora AB ADR(1)+.......................................... 51,000 1,020,000
Coherent, Inc.+........................................... 50,000 2,390,625
Cytyc Corp.+.............................................. 25,000 468,750
Guidant Corp. ............................................ 10,000 615,000
Myriad Genetics, Inc.+.................................... 45,000 1,552,500
Neurex Corp.+............................................. 20,000 237,500
Ventana Medical Systems, Inc.+............................ 90,000 1,260,000
------------
7,544,375
------------
PHARMACEUTICALS--6.1%
Allergan Ligand Retinoid Theraputics, Inc.+(4)............ 75,000 2,118,750
Bristol-Myers Squibb Co. ................................. 20,000 1,180,000
Guilford Pharmaceuticals, Inc.+........................... 82,500 1,711,875
IDEC Pharmaceuticals Corp.+............................... 95,000 2,262,187
Kos Pharmaceuticals, Inc.+................................ 25,000 500,000
Ligand Pharmaceuticals, Inc.,
Class B+................................................. 65,000 731,250
Millenium Pharmaceuticals, Inc.+.......................... 4,000 54,500
PAREXAL International Corp.+.............................. 15,000 345,000
PathoGenesis Corp.+....................................... 25,000 625,000
Teva Pharmaceutical Industries Ltd. ADR(1)................ 72,500 4,023,750
------------
13,552,312
------------
POLLUTION CONTROL--2.6%
Culligan Water Technologies, Inc.+........................ 30,000 1,173,750
Philip Environmental, Inc.+............................... 110,000 1,663,750
United Waste Systems, Inc.+............................... 35,000 1,303,750
USA Waste Services, Inc.+................................. 49,000 1,739,500
------------
5,880,750
------------
REAL ESTATE INVESTMENT TRUSTS--2.7%
Bay Apartment Communities, Inc. .......................... 15,000 538,125
FelCor Suite Hotels, Inc. ................................ 30,000 1,102,500
Golf Trust of America, Inc.+.............................. 33,000 804,375
Innkeepers USA Trust...................................... 105,000 1,535,625
Starwood Lodging Trust+................................... 52,500 2,047,500
------------
6,028,125
------------
SOFTWARE--2.6%
3DLabs, Inc Ltd +......................................... 67,500 1,586,250
Arbor Software Corp.+..................................... 10,000 250,000
</TABLE>
20
<PAGE>
SUNAMERICA SMALL COMPANY GROWTH FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
SOFTWARE (CONTINUED)
Dassault Systems S A ADR(1)+............................... 30,000 $ 1,738,125
Innovus Corp.+............................................. 55,200 186,300
Innovus Corp.+(2)(3)....................................... 54,000 143,100
IONA Technologies PLC ADR(1)+.............................. 26,000 468,000
Rational Software Corp.+................................... 70,000 1,443,750
------------
5,815,525
------------
SPECIALTY RETAIL--5.4%
Coldwater Creek, Inc.+..................................... 92,500 1,283,437
Footstar, Inc.+............................................ 83,000 2,458,875
Guitar Center, Inc.+....................................... 49,500 792,000
Intimate Brands, Inc. ..................................... 50,000 943,750
MacFrugals Bargains Closeouts, Inc.+....................... 20,000 530,000
Payless Shoesource, Inc.+.................................. 30,000 1,256,250
RDO Equipment Co., Class A+................................ 90,000 1,575,000
Samsonite Corp.+........................................... 75,000 3,243,750
------------
12,083,062
------------
TELECOMMUNICATIONS--1.9%
Advanced Fibre Communications+............................. 35,000 1,128,750
COLT Telecom Group PLC ADR(1)+............................. 10,000 188,750
Lucent Technologies, Inc. ................................. 10,000 527,500
MDSI Mobile Data Solutions, Inc.+.......................... 60,000 1,020,000
Pacific Gateway Exchange, Inc.+............................ 45,600 1,140,000
Teleport Communications Group,
Class A+.................................................. 5,000 115,000
------------
4,120,000
------------
TRANSPORTATION--2.3%
Caliber System, Inc. ...................................... 60,000 1,590,000
Consolidated Freightways Corp.+............................ 50,000 593,750
Consolidated Freightways, Inc. ............................ 20,000 542,500
Trico Marine Services, Inc.+............................... 51,000 2,422,500
------------
5,148,750
------------
TOTAL COMMON STOCK
(COST $184,984,763)........................................ 202,652,216
------------
WARRANTS--1.2%
ELECTRONICS--1.2%
Intel Corp. ............................................... 26,000 2,577,250
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
<S> <C> <C>
TELECOMMUNICATIONS--0.0%
Nexus Telecommunication
Systems Ltd., Class D+. 100,000 $ 50,000
------------
TOTAL WARRANTS
(COST $2,359,026)....... 2,627,250
------------
TOTAL INVESTMENT
SECURITIES--92.2%
(cost $187,343,789)..... 205,279,466
------------
REPURCHASE AGREEMENT--10.6%
Joint Repurchase
Agreement Account (Note
2)
(cost $23,656,000)..... $23,656 23,656,000
------------
TOTAL INVESTMENTS--
(COST $210,999,789)..... 102.8% 228,935,466
Liabilities in excess of
other assets............ (2.8) (6,166,159)
------- ------------
NET ASSETS-- 100.0% $222,769,307
======= ============
</TABLE>
- -------
+ Non-income producing security
(1) ADR ("American Depositary Receipt")
(2) At March 31, 1997 the Fund held restricted securities amounting to 2.1% of
net assets. The Fund will not bear any costs, including those involved in
registration under the Securities Act of 1933, in the connection with the
disposition of the securities.
<TABLE>
<CAPTION>
VALUATION
DATE OF UNIT AS OF
DESCRIPTION ACQUISITION COST MARCH 31, 1997
----------- ----------- ------ --------------
<S> <C> <C> <C>
ProSoft Development, Inc. 7/02/96 $10.00 $10.50
Flanders Corp. 5/09/96 5.00 8.44
Innovus Corp. 3/21/95 3.50 2.65
</TABLE>
(3) Fair valued security, see Note 2
(4) Consists of stocks and warrants traded together as a unit
See Notes to Financial Statements
21
<PAGE>
SUNAMERICA GLOBAL BALANCED FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1997 (unaudited)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCK--66.6%
DOMESTIC EQUITY--17.1%
AEROSPACE & MILITARY TECHNOLOGY--0.4%
Boeing Co. ................................................ 1,000 $ 98,625
-----------
AUTOMOTIVE--1.3%
Ford Motor Co. ............................................ 2,500 78,437
General Motors Corp. ...................................... 4,000 221,500
-----------
299,937
-----------
BANKS--1.1%
Chase Manhattan Corp. ..................................... 1,000 93,625
Citicorp. ................................................. 1,000 108,250
Hibernia Corp., Class A.................................... 5,000 65,625
-----------
267,500
-----------
CHEMICALS--0.7%
du Pont (E.I.) de Nemours & Co. ........................... 1,000 106,000
Waters Corp.+.............................................. 2,500 66,875
-----------
172,875
-----------
COMMUNICATION EQUIPMENT--0.6%
Tellabs, Inc.+............................................. 4,000 144,500
-----------
COMPUTERS & BUSINESS EQUIPMENT--0.3%
American Pad & Paper Co.+.................................. 5,000 75,000
-----------
CONGLOMERATE--0.9%
AlliedSignal, Inc. ........................................ 2,000 142,500
General Electric Co. ...................................... 800 79,400
-----------
221,900
-----------
CONSTRUCTION MATERIALS--0.3%
Dal-Tile International, Inc.+.............................. 5,000 78,125
-----------
FINANCIAL SERVICES--1.8%
Associates First Capital Corp. Class A..................... 2,000 86,000
Morgan Stanley Group, Inc. ................................ 2,000 117,500
Nationwide Financial Services, Inc.
Class A................................................... 5,000 128,750
Travelers Group, Inc. ..................................... 2,000 95,750
-----------
428,000
-----------
FOOD, BEVERAGE & TOBACCO--1.1%
McDonald's Corp. .......................................... 3,000 141,750
Philip Morris Cos., Inc. .................................. 1,000 114,125
-----------
255,875
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
HOUSEHOLD PRODUCTS--1.4%
Scotts Co. Class A+........................................ 3,000 $ 69,000
Warner-Lambert Co. ........................................ 3,000 259,500
-----------
328,500
-----------
MEDICAL PRODUCTS--0.9%
Johnson & Johnson Co. ..................................... 4,000 211,500
-----------
PHARMACEUTICALS--4.5%
Allergan, Inc. ............................................ 3,000 87,375
Bristol-Myers Squibb Co. .................................. 3,000 177,000
Lilly (Eli) & Co. ......................................... 2,000 164,500
Merck & Co., Inc. ......................................... 3,000 252,750
Neurex Corp.+.............................................. 5,000 59,375
Pfizer, Inc. .............................................. 1,200 100,950
Schering-Plough Corp. ..................................... 3,200 232,800
-----------
1,074,750
-----------
TELECOMMUNICATIONS--1.8%
AT&T Corp. ................................................ 3,000 104,250
GTE Corp. ................................................. 5,000 233,125
Lucent Technologies, Inc. ................................. 2,000 105,500
-----------
442,875
-----------
TOTAL DOMESTIC EQUITY
(COST $3,245,800).......................................... 4,099,962
-----------
FOREIGN EQUITY--49.5%
APPAREL & TEXTILES--1.1%
Adidas AG (Germany)........................................ 1,100 124,970
Gamma Holding NV (Netherlands)............................. 2,600 147,641
-----------
272,611
-----------
AUTOMOTIVE--4.3%
Calsonic Corp. (Japan)..................................... 6,000 30,711
Honda Motor Co., Ltd. (Japan).............................. 2,000 59,675
Mitsubishi Heavy Industrial Ltd. (Japan)................... 20,000 130,185
Mitsubishi Motors Corp. (Japan)............................ 9,000 66,734
Nokian Tyres (Finland)..................................... 5,000 124,109
Oriental Holdings Berhad (Malaysia)........................ 16,000 144,615
PT Selamat Sempurna alien+ (Indonesia)..................... 50,000 38,526
Scania AB, Series A (Sweden)............................... 3,200 80,255
Suzuki Motor Corp. (Japan)................................. 10,000 97,032
Toyota Motor Corp. (Japan)................................. 2,000 50,619
Volkswagen AG (Germany).................................... 210 116,079
Volvo AB (Sweden).......................................... 3,500 93,816
-----------
1,032,356
-----------
BANKS--5.8%
Banca Populare Di Milano (Italy)........................... 15,000 84,121
Banco Credito del Peru (Peru).............................. 18,386 31,562
</TABLE>
22
<PAGE>
SUNAMERICA GLOBAL BALANCED FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
- --------------------------------------------------------------------------------
COMMON STOCK (CONTINUED)
FOREIGN EQUITY (CONTINUED)
BANKS (CONTINUED)
Banco Santander-Chile Series A ADR(1) (Chile).............. 800 $ 13,400
Banco Totta & Acores (Portugal)............................ 2,500 37,741
Bangkok Bank PLC alien (Thailand).......................... 1,900 18,447
Bank Of Tokyo-Mitsubishi Ltd.+ (Japan)..................... 10,600 165,424
Chiba Bank Ltd. (Japan).................................... 20,000 114,822
CS Holding+ (Switzerland).................................. 1,020 122,450
HSBC Holdings PLC (Hong Kong).............................. 6,000 139,378
Industrial Bank of Japan Ltd. (Japan)...................... 8,640 88,028
National Westminster Bank PLC
(United Kingdom).......................................... 10,000 114,100
Overseas Union Bank Ltd. (Singapore)....................... 6,000 41,329
PT Bank Negara Indonesia alien (Indonesia)................. 165,000 94,492
Sakura Bank Ltd. (Japan)................................... 28,000 156,901
Siam Commercial Bank Co., Ltd alien (Thailand)............. 3,700 21,668
Societe Generale (France).................................. 1,000 117,197
Toronto Dominion Bank Ontario (Canada)..................... 850 21,611
-----------
1,382,671
-----------
BROADCASTING & MEDIA--0.3%
Abitibi Price, Inc. (Canada)............................... 1,790 25,793
News Corp., Ltd. (Australia)............................... 8,000 37,316
Singapore Press Holdings Ltd. alien (Singapore)............ 1,000 18,207
-----------
81,316
-----------
CHEMICALS--1.2%
Laporte PLC (United Kingdom)............................... 13,000 149,720
Nippon Shokubai K.K. Co. (Japan)........................... 8,000 47,740
Sekisui Chemical Co., Ltd. (Japan)......................... 4,000 39,460
Toagosei Co., Ltd. (Japan)................................. 20,000 63,556
-----------
300,476
-----------
COMMUNICATION EQUIPMENT--1.1%
Ericsson (L.M.) Telephone Co., Class B ADR(1) (Sweden)..... 4,000 135,250
Nokia Corp., Class A ADR(1) (Finland)...................... 2,000 116,500
-----------
251,750
-----------
COMPUTERS & BUSINESS EQUIPMENT--1.3%
Logitech International SA+ (Switzerland)................... 400 76,164
Ricoh Co. Ltd. (Japan)..................................... 4,000 45,605
Tokyo Electron Ltd. (Japan)................................ 3,300 109,404
Videologic Group PLC+
(United Kingdom).......................................... 100,000 88,845
-----------
320,018
-----------
CONGLOMERATE--1.8%
Alusuisse-Lonza Holdings AG (Switzerland).................. 100 84,503
Amano Corp. (Japan)........................................ 4,000 37,519
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
CONGLOMERATE (CONTINUED)
Eaux (cie Generale) (France)............................... 1,000 $ 136,254
Fitters Holdings Berhad (Malaysia)......................... 20,000 70,210
Nissho Iwai Corp. (Japan).................................. 30,000 99,216
-----------
427,702
-----------
CONSTRUCTION & HOUSING--4.7%
Bilfinger & Berger Bau AG (Germany)........................ 2,800 109,616
Cheung Kong Infrastructure
(Hong Kong)............................................... 40,000 113,051
Finning Ltd. (Canada)...................................... 400 8,855
Glynwed International PLC
(United Kingdom).......................................... 30,000 138,697
Hilti AG (Switzerland)..................................... 125 81,220
Konecranes International Corp.+
(Finland)................................................. 4,500 175,655
Mori Seiki Co., Ltd. (Japan)............................... 3,000 41,239
Nishimatsu Construction (Japan)............................ 12,000 75,976
Tarmac PLC (United Kingdom)................................ 85,000 135,653
Volker Stevin (Koninklijke) NV+ (Netherlands).............. 1,000 108,238
Walter AG+ (Germany)....................................... 400 136,211
-----------
1,124,411
-----------
CONSTRUCTION MATERIALS--2.2%
Cemex SA, Class B (Mexico)................................. 6,000 24,176
Grafton Group PLC (Ireland)................................ 10,000 141,133
Nippon Electric Glass Co., Ltd. (Japan).................... 10,000 135,037
PT Semen Gresik alien (Indonesia).......................... 4,000 9,954
Schneider SA (France)...................................... 4,000 229,406
-----------
539,706
-----------
DEPARTMENT STORES--0.0%
Hudsons Bay Co. (Canada)................................... 470 9,115
-----------
ELECTRICAL EQUIPMENT--0.3%
Matsushita Electric Works Ltd. (Japan)..................... 8,000 73,098
-----------
ELECTRONICS--3.5%
Advantest Corp. (Japan).................................... 1,980 99,905
Best Denki Co. Ltd. (Japan)................................ 10,000 100,267
Canon, Inc. (Japan)........................................ 3,000 64,284
Fanuc Ltd. (Japan)......................................... 3,000 92,181
Hoganas AG (Sweden)........................................ 2,500 79,286
Kyocera Corp. (Japan)...................................... 1,000 56,764
NEC Corp. (Japan).......................................... 12,000 135,845
Pressac Holdings PLC
(United Kingdom).......................................... 30,000 112,043
Toshiba Corp. (Japan)...................................... 10,000 55,308
Ushio, Inc. (Japan)........................................ 4,000 43,665
-----------
839,548
-----------
</TABLE>
23
<PAGE>
SUNAMERICA GLOBAL BALANCED FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCK (CONTINUED)
FOREIGN EQUITY (CONTINUED)
ENERGY SERVICES--0.5%
Total SA, Series B (France)............................... 1,500 $ 130,083
-----------
ENERGY SOURCES--0.5%
Chauvco Resources Ltd.+ (Canada).......................... 800 9,679
Crestar Energy, Inc.+ (Canada)............................ 968 18,528
Renaissance Energy Ltd.+ (Canada)......................... 968 27,512
Suncor, Inc. (Canada)..................................... 240 10,574
TransCanada Pipelines Ltd. (Canada)....................... 2,325 42,235
-----------
108,528
-----------
ENTERTAINMENT PRODUCTS--0.9%
Bluebird Toys PLC (United Kingdom)........................ 30,000 95,755
RBI Holdings Ltd. (Bermuda)............................... 800,000 111,503
-----------
207,258
-----------
FINANCIAL SERVICES--1.6%
Asia Securities International
(Hong Kong).............................................. 225,000 76,222
Dhana Siam Finance & Securities PLC (Thailand)............ 7,500 10,041
Hutchison Whampoa Ltd. alien
(Hong Kong).............................................. 9,000 67,657
Nomura Securities International, Inc. (Japan)............. 10,000 110,779
Parmalat Finanziar Spa (Italy)............................ 60,000 83,311
Want Want Holdings+ (Singapore)........................... 12,000 34,440
-----------
382,450
-----------
FOOD, BEVERAGE & TOBACCO--1.7%
HM Sampoerna alien (Indonesia)............................ 3,500 16,400
Katokichi Co. (Japan)..................................... 7,000 104,148
Sainsbury (J.) PLC (United Kingdom)....................... 25,000 139,437
Seagram Co. Ltd. (Canada)................................. 383 14,662
Vaux Group PLC (United Kingdom)........................... 30,000 128,825
-----------
403,472
-----------
FOREST PRODUCTS--1.1%
Fletcher Challenge Ltd., Class A (Canada)................. 1,647 25,576
Macmillan Bloedel Ltd. (Canada)........................... 600 8,386
Maderas Y Sinteticos SA ADR(1) (Chile).................... 1,900 29,925
New Oji Paper Co., Ltd.+ (Japan).......................... 11,000 55,414
Waddington (John) PLC
(United Kingdom)......................................... 25,000 133,267
-----------
252,568
-----------
HOUSING--0.5%
Kon Ahrend NV (Netherlands)............................... 1,700 108,680
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
INSURANCE--1.5%
AXA SA+ (France).......................................... 2,000 $ 132,621
Legal & General Group PLC
(United Kingdom)......................................... 10,000 64,330
Tokio Marine & Fire Insurance Co., Ltd. (Japan)........... 15,000 152,826
-----------
349,777
-----------
LEISURE & TOURISM--1.4%
Air Canada, Inc.+ (Canada)................................ 3,004 14,537
Airtours PLC (United Kingdom)............................. 8,000 130,306
Manchester United PLC
(United Kingdom)......................................... 10,000 106,614
Stanley Leisure PLC
(United Kingdom)......................................... 20,000 97,072
-----------
348,529
-----------
MACHINERY--0.8%
Seino Transportation (Japan).............................. 6,000 58,705
Tomra Systems ASA (Norway)................................ 6,500 131,191
-----------
189,896
-----------
MANUFACTURING--0.3%
Bombardier, Inc. Class B (Canada)......................... 426 7,692
Graystone PLC (United Kingdom)............................ 50,000 69,102
-----------
76,794
-----------
METALS & MINING--1.6%
Barrick Gold Corp. (Canada)............................... 1,126 26,595
Cominco Ltd. (Canada)..................................... 387 10,552
Davao Union Cement Class B (Philippines).................. 140,000 29,205
Diamond Fields International Ltd.(2)+ (Canada)............ 400 274
Inco Ltd. (Canada)........................................ 422 13,655
Inco Ltd., Class V (Canada)............................... 1,000 22,933
Nippon Steel Corp. (Japan)................................ 40,000 109,970
PT Telekomunikasi (Indonesia)............................. 30,000 45,918
Stelco, Inc. Class A+ (Canada)............................ 3,330 17,799
Sumitomo Metal Mining Co., Ltd. (Japan)................... 20,000 120,805
-----------
397,706
-----------
PHARMACEUTICALS--2.7%
Astra AB, Series A (Sweden)............................... 1,600 77,389
Glaxo Wellcome PLC ADR(1)
(United Kingdom)......................................... 10,000 183,613
Kissei Pharmaceutical Co. (Japan)......................... 4,400 77,917
Ono Pharmaceutical Co., Ltd. (Japan)...................... 2,000 61,939
Rhone-Poulenc Rorer, Inc. (France)........................ 3,500 118,630
Roche Holdings AG (Switzerland)........................... 14 121,077
-----------
640,565
-----------
</TABLE>
24
<PAGE>
SUNAMERICA GLOBAL BALANCED FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
- --------------------------------------------------------------------------------
COMMON STOCK (CONTINUED)
FOREIGN EQUITY (CONTINUED)
REAL ESTATE COMPANIES--1.1%
Ayala Land, Inc. Class B (Philippines)................... 44,000 $ 50,066
Cheung Kong Holdings Ltd.
(Hong Kong)............................................. 8,000 70,464
City Developments Ltd. (Singapore)....................... 4,000 35,445
Sun Hung Kai Properties Ltd.
(Hong Kong)............................................. 8,000 84,659
Trizec Hahn Corp. (Canada)............................... 610 13,636
-----------
254,270
-----------
SOFTWARE--0.4%
Getronics NV (Netherlands)............................... 3,000 97,574
-----------
SPECIALTY RETAIL--1.7%
Aoki International Co., Ltd. (Japan)..................... 5,000 76,009
Great Universal Stores PLC
(United Kingdom)........................................ 15,000 164,363
Inchcape PLC (United Kingdom)............................ 14,000 59,888
Koninklijke Ahold NV (Netherlands)....................... 1,500 104,532
-----------
404,792
-----------
TELECOMMUNICATIONS--2.0%
BCE, Inc. (Canada)....................................... 417 19,156
Cable & Wireless PLC
(United Kingdom)........................................ 15,000 121,421
Korea Mobile Telecommunications ADR(1) (Korea)........... 5,160 52,893
Nippon Telegraph & Telecommunications Corp. (Japan)...... 12 84,515
Northern Telecom Ltd (Canada)............................ 89 5,805
Sociedade Tecnica de Equipamentos SA ADS (Italy)......... 30,000 106,523
Telecomunic Brasileiras SA (Brazil)...................... 1,000,000 100,812
-----------
491,125
-----------
TELEPHONE--0.1%
Telefonos de Mexico SA ADR(1) (Mexico)................... 750 28,875
-----------
TRANSPORTATION--0.4%
Kamigumi Co., Ltd. (Japan)............................... 7,000 33,452
Mitsubishi Logistc Corp. (Japan)......................... 3,000 32,749
Nippon Express Co., Ltd. (Japan)......................... 6,000 39,977
-----------
106,178
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL AMOUNT
(DENOMINATED IN
LOCAL CURRENCY) VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
<S> <C> <C>
UTILITIES--1.1%
Cogeneration PLC alien+ (Thailand)............... 15,000 $ 52,302
CPT Telefonica de Peru (Peru).................... 9,000 19,966
Electricity Generating PLC alien (Thailand)...... 10,000 24,466
Tokyo Electric Power Co., Inc. (Japan)........... 4,000 72,774
Veba AG (Germany)................................ 1,500 84,937
-----------
254,445
-----------
TOTAL FOREIGN EQUITY
(COST $11,579,834)............................... 11,888,343
-----------
TOTAL COMMON STOCK
(COST $14,825,634)............................... 15,988,305
-----------
PREFERRED STOCK--1.2%
ENERGY SOURCES--0.3%
Cemig Cia Energy MG (Brazil)..................... 1,650,000 67,913
-----------
HOUSEHOLD PRODUCTS--0.5%
Friedrich Grohe AG non-voting (Germany).......... 400 123,981
-----------
METALS & MINING--0.0%
Inco Ltd., Series E (Canada)..................... 36 2,641
-----------
SPECIALTY RETAIL--0.4%
Hornbach Holding AG non-voting (Germany)......... 1,450 95,189
-----------
TOTAL PREFERRED STOCK
(COST $263,883).................................. 289,724
-----------
WARRANTS--0.0%
FINANCIAL SERVICES--0.0%
Industrial Finance Corp.
(cost $17,074).................................. 12 3,652
-----------
FOREIGN BONDS--13.9%
Commonwealth of Australia
7.50% due 7/15/05................................ 100 76,381
</TABLE>
25
<PAGE>
SUNAMERICA GLOBAL BALANCED FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(DENOMINATED IN
LOCAL CURRENCY) VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
<S> <C> <C>
- --------------------------------------------------------------------------------
FOREIGN BONDS (CONTINUED)
Federal Republic of Germany
5.88% due 5/15/00................................ 300 $ 188,525
6.75% due 7/15/04................................ 300 193,148
7.13% due 12/20/02............................... 300 197,374
7.38% due 1/03/05................................ 500 332,194
Government of Canada.............................
7.50% due 9/01/00................................ 200 152,751
Government of France.............................
7.00% due 11/12/99............................... 700 133,754
Government of Spain
10.00% due 2/28/05............................... 10,000 82,930
Kingdom of Belgium
6.50% due 3/31/05................................ 4,000 122,442
Kingdom of Denmark
9.00% due 11/15/00............................... 1,000 177,001
Kingdom of Sweden
10.25% due 5/05/03............................... 1,500 234,827
13.00% due 6/15/01............................... 1,500 249,813
Republic of Ireland
8.00% due 10/18/00 .............................. 100 167,900
Republic of Italy
10.50% due 11/01/00.............................. 400,000 259,709
Treuhandanstalt (Germany)
6.13% due 6/25/98................................ 100 61,841
United Kingdom Treasury
8.50% due 12/07/05............................... 300 520,576
9.00% due 3/03/00................................ 100 172,137
-----------
TOTAL FOREIGN BONDS
(COST $3,408,514)................................ 3,323,303
-----------
U.S. TREASURY NOTES--6.9%
5.25% due 1/31/01................................ 100 95,187
6.13% due 9/30/00................................ 150 147,422
6.38% due 3/31/01................................ 200 197,500
6.50% due 8/15/05................................ 500 486,170
7.88% due 11/15/04............................... 700 739,263
-----------
TOTAL U.S. TREASURY NOTES
(COST $1,663,354)................................ 1,665,542
-----------
TOTAL INVESTMENT SECURITIES--88.6%
(COST $20,178,458)............................... 21,270,526
-----------
SHORT-TERM SECURITIES--5.4%
Cayman Island Time Deposit 4.50% due 4/01/97
(cost $1,287,000)............................... $ 1,287 1,287,000
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
<S> <C> <C>
REPURCHASE AGREEMENT--5.4%
Joint Repurchase Agreement Account (Note 2)
(cost $1,300,000)................................ $1,300 $ 1,300,000
-----------
TOTAL INVESTMENTS--
(COST $22,765,458)................................ 99.4% 23,857,526
Other assets less liabilities...................... 0.6 148,141
------ -----------
NET ASSETS-- 100.0% $24,005,667
====== ===========
</TABLE>
- -------
+Non-income producing security
(1)ADR ("American Depositary Receipt")
(2)Fair valued security, see Note 2
Allocation of net assets by
currency as of March 31, 1997:
U.S. Dollar 36.5%
Japanese Yen 14.9
British
Pound 12.2
Deutsche Mark 7.4
French Franc 4.2
Swedish Krona 3.4
Hong Kong
Dollar 2.8
Netherland
Guilder 2.4
Canadian
Dollar 2.2
Italian Lira 2.2
Swiss Franc 2.0
Finnish
Markka 1.2
Irish Punt 1.3
Indonesian
Rupiah 0.9
Malaysian
Ringgit 0.9
Brazilian
Real 0.7
Danish Kroner 0.7
Australian
Dollar 0.5
Belgian Franc 0.5
Norwegian
Krone 0.5
Singapore
Dollar 0.4
Thailand Baht 0.5
Philippines
Peso 0.3
Spanish
Peseta 0.3
Mexican Peso 0.1
Peruvian Nouveau
Sol 0.2
Portuguese
Escudo 0.2
---
99.4%
---
---
See Notes to Financial Statements
26
<PAGE>
SUNAMERICA GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1997 (unaudited)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCK--92.6%
AEROSPACE & MILITARY TECHNOLOGY--0.7%
Boeing Co. ................................................ 4,462 $ 440,065
-----------
APPAREL & TEXTILES--0.5%
NIKE, Inc., Class B........................................ 5,000 310,000
-----------
AUTOMOTIVE--1.2%
Ford Motor Co. ............................................ 10,000 313,750
Goodyear Tire & Rubber Co. ................................ 10,000 522,500
-----------
836,250
-----------
BANKS--6.4%
BankAmerica Corp. ......................................... 6,000 604,500
Chase Manhattan Corp. ..................................... 9,000 842,625
First Union Corp. ......................................... 6,000 486,750
Fleet Financial Group, Inc. ............................... 10,000 572,500
Mellon Bank Corp. ......................................... 7,000 509,250
NationsBank Corp. ......................................... 10,000 553,750
Summit Bancorp. ........................................... 16,000 700,000
-----------
4,269,375
-----------
BUSINESS SERVICES--2.2%
American Express Co. ...................................... 4,000 239,500
Omnicom Group.............................................. 10,000 498,750
Service Corp. International................................ 25,000 743,750
-----------
1,482,000
-----------
CHEMICALS--6.5%
du Pont (E.I.) de Nemours & Co. ........................... 5,000 530,000
Fuller H B Co. ............................................ 20,000 975,000
Hanna (M.A), Co. .......................................... 25,000 531,250
IMC Global, Inc. .......................................... 30,000 1,083,750
Monsanto Co. .............................................. 10,000 382,500
RPM, Inc. Ohio............................................. 20,000 332,500
Waters Corp.+.............................................. 20,000 535,000
-----------
4,370,000
-----------
COMMUNICATION EQUIPMENT--0.9%
Nokia Corp., Class A ADR(1)................................ 10,000 582,500
-----------
COMPUTERS & BUSINESS EQUIPMENT--4.6%
American Pad & Paper Co.+.................................. 20,000 300,000
Cisco Systems, Inc.+....................................... 5,000 240,625
Compaq Computer, Corp.+.................................... 2,000 153,250
Computer Associates International, Inc. ................... 15,000 583,125
Hewlett-Packard Co. ....................................... 11,000 585,750
Honeywell, Inc. ........................................... 12,000 814,500
International Business Machines Corp. ..................... 3,000 412,125
-----------
3,089,375
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
CONGLOMERATE--2.5%
AlliedSignal, Inc. ........................................ 7,000 $ 498,750
General Electric Co. ...................................... 7,000 694,750
ITT Industries, Inc. ...................................... 14,000 313,250
Republic Industries, Inc.+................................. 5,000 173,438
-----------
1,680,188
-----------
CONSTRUCTION & HOUSING--1.1%
Chicago Bridge & Iron Co. N.V. ............................ 10,000 177,500
Dal-Tile International, Inc.+.............................. 35,000 546,875
-----------
724,375
-----------
DEPARTMENT STORES--1.4%
Federated Department Stores, Inc.+......................... 20,000 657,500
Wal-Mart Stores, Inc....................................... 10,000 278,750
-----------
936,250
-----------
ELECTRONICS--5.9%
Advanced Micro Devices, Inc.+.............................. 7,000 290,500
Emerson Electric Co. ...................................... 14,000 630,000
Intel Corp................................................. 8,000 1,113,000
Motorola, Inc. ............................................ 5,000 301,875
Newbridge Networks Corp. ADR(1)+........................... 15,000 429,375
Rockwell International Corp................................ 13,000 843,375
Texas Instruments, Inc. ................................... 4,500 336,937
-----------
3,945,062
-----------
ENERGY SERVICES--6.5%
Amoco Corp................................................. 5,000 433,125
Baker Hughes, Inc.......................................... 20,000 767,500
Central & South West Corp. ................................ 20,000 427,500
Chevron Corp. ............................................. 7,000 487,375
Exxon Corp................................................. 9,000 969,750
Mobil Corp................................................. 4,500 587,812
Royal Dutch Petroleum Co................................... 4,000 700,000
-----------
4,373,062
-----------
ENERGY SOURCES--3.4%
Nuevo Energy Co. .......................................... 15,000 575,625
Panhandle Eastern Corp..................................... 15,000 646,875
Parker & Parsley Petroleum Co. ............................ 10,000 295,000
Pogo Producing Co. ........................................ 10,000 360,000
Texaco, Inc. .............................................. 4,000 438,000
-----------
2,315,500
-----------
ENTERTAINMENT PRODUCTS--0.9%
Mattel, Inc. .............................................. 26,000 624,000
-----------
FINANCIAL SERVICES--3.9%
Associates First Capital Corp. ............................ 10,000 430,000
Charles Schwab Corp. ...................................... 10,000 318,750
</TABLE>
27
<PAGE>
SUNAMERICA GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCK (CONTINUED)
FINANCIAL SERVICES (CONTINUED)
Federal National Mortgage Association...................... 19,300 $ 697,212
HomeSide Inc. ............................................. 11,000 162,250
Nationwide Financial Services, Inc. ....................... 15,000 386,250
Transamerica Corp. ........................................ 7,000 626,500
-----------
2,620,962
-----------
FOOD, BEVERAGE & TOBACCO--6.3%
Coca-Cola Co. ............................................. 6,000 335,250
Dole Food, Inc. ........................................... 20,000 755,000
Flowers Industries, Inc. .................................. 22,000 503,250
Heinz (H.J.) Co. .......................................... 8,000 316,000
McDonald's Corp. .......................................... 11,000 519,750
PepsiCo, Inc. ............................................. 8,000 261,000
Philip Morris Cos., Inc. .................................. 12,000 1,369,500
UST, Inc. ................................................. 6,000 167,250
-----------
4,227,000
-----------
FOREST PRODUCTS--1.7%
Kimberly-Clark Corp. ...................................... 8,000 795,000
Willamette Industries, Inc. ............................... 6,000 375,000
-----------
1,170,000
-----------
HEALTH SERVICES--3.6%
Columbia/HCA Healthcare Corp. ............................. 25,000 840,625
Tenet Healthcare Corp.+.................................... 24,650 607,006
United Healthcare Corp. ................................... 20,000 952,500
-----------
2,400,131
-----------
HOUSEHOLD PRODUCTS--2.0%
Corning, Inc. ............................................. 20,000 887,500
Procter & Gamble Co. ...................................... 4,000 460,000
-----------
1,347,500
-----------
INSURANCE--2.9%
Aetna, Inc. ............................................... 7,500 644,063
Allstate Corp. ............................................ 9,000 534,375
Chubb Corp. ............................................... 10,000 538,750
Equitable Cos., Inc. ...................................... 8,000 218,000
-----------
1,935,188
-----------
LEISURE & TOURISM--1.2%
Carnival Corp., Class A.................................... 14,000 518,000
Family Golf Centers Inc. .................................. 14,000 273,875
-----------
791,875
-----------
MEDICAL PRODUCTS--2.5%
Amgen, Inc.+............................................... 12,000 670,500
Baxter International, Inc. ................................ 15,000 646,875
Sola International, Inc.+.................................. 15,000 346,875
-----------
1,664,250
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
METALS & MINING--3.7%
Crown, Cork & Seal, Inc. .................................. 30,000 $ 1,548,750
EASCO, Inc. ............................................... 30,000 240,000
Martin Marietta Materials, Inc. ........................... 13,000 334,750
Nucor Corp. ............................................... 5,000 228,750
Santa Fe Pacific Gold Corp. ............................... 10,000 165,000
-----------
2,517,250
-----------
PHARMACEUTICALS--4.0%
Bristol-Myers Squibb Co. .................................. 16,000 944,000
Lilly (Eli) & Co. ......................................... 6,000 493,500
Merck & Co., Inc. ......................................... 15,000 1,263,750
-----------
2,701,250
-----------
POLLUTION CONTROL--2.4%
Browning-Ferris Industries, Inc. .......................... 12,000 346,500
United States Filter Corp.+................................ 25,000 771,875
USA Waste Services, Inc.+.................................. 13,000 461,500
-----------
1,579,875
-----------
REAL ESTATE INVESTMENT TRUSTS--2.0%
Crescent Real Estate Equities.............................. 16,000 428,000
Evans Withycombe Residential, Inc. ........................ 15,000 309,375
Healthcare Realty Trust.................................... 10,000 273,750
Reckson Associates Realty Corp. ........................... 7,000 322,875
-----------
1,334,000
-----------
RESTAURANTS--0.2%
Ryans Family Steak Houses Inc. ............................ 15,000 117,188
-----------
SOFTWARE--2.3%
Microsoft Corp.+........................................... 10,000 916,875
Reynolds & Reynolds Co. ................................... 27,000 644,625
-----------
1,561,500
-----------
SPECIALTY RETAIL--2.2%
Gillette Co. .............................................. 5,000 363,125
Home Depot, Inc. .......................................... 16,000 856,000
Loehmanns, Inc.+........................................... 15,000 262,500
-----------
1,481,625
-----------
TELECOMMUNICATIONS--3.0%
Ameritech Corp. ........................................... 5,000 307,500
GTE Corp. ................................................. 11,000 512,875
Lucent Technologies, Inc. ................................. 11,296 595,864
MCI Communications Corp. .................................. 10,000 356,250
NYNEX Corp. ............................................... 5,000 228,125
-----------
2,000,614
-----------
</TABLE>
28
<PAGE>
SUNAMERICA GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS -- March 31, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
<S> <C> <C>
- --------------------------------------------------------------------------------
COMMON STOCK (CONTINUED)
TRANSPORTATION--1.6%
AMR Corp.+....................................... 4,000 $ 330,000
Burlington Northern Santa Fe..................... 10,000 740,000
-----------
1,070,000
-----------
UTILITIES--2.4%
Baltimore Gas & Electric Co. .................... 7,000 187,250
Consolidated Natural Gas Co. .................... 10,000 503,750
GPU, Inc. ....................................... 7,000 224,875
Peoples Energy Corp. ............................ 10,000 331,250
Utilicorp United, Inc. .......................... 14,000 357,000
-----------
1,604,125
-----------
TOTAL COMMON STOCK
(COST $60,110,491)............................... 62,102,335
-----------
NOTE--0.1%
FOREST PRODUCTS--0.1%
Stone Container Corp.
11.88% due 12/01/98
(cost $50,714).................................. $ 50 50,500
-----------
TOTAL INVESTMENT SECURITIES--92.7%
(COST $60,161,205)............................... 62,152,835
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 2)
<S> <C> <C>
REPURCHASE AGREEMENT--7.5%
Joint Repurchase Agreement Account (Note 2)
(cost $5,044,000)............................... $5,044 $ 5,044,000
-----------
TOTAL INVESTMENTS--
(COST $65,205,205)............................... 100.2% 67,196,835
Liabilities in excess of other assets............. (0.2) (145,758)
------ -----------
NET ASSETS-- 100.0% $67,051,077
====== ===========
</TABLE>
- --------
+ Non-income producing security
(1) ADR ("American Depositary Receipt")
See Notes to Financial Statements
29
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1997 (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. It currently consists of six different investment
funds (each, a "Fund" and collectively, the "Funds"). Each Fund is a
separate series of the Trust with a distinct investment objective and/or
strategy. Each Fund is advised and/or managed by SunAmerica Asset
Management Corp. (the "Adviser" or "SAAMCo"), an indirect wholly-owned
subsidiary of SunAmerica Inc. An investor may invest in one or more of the
following Funds: SunAmerica Balanced Assets Fund ("Balanced Assets Fund"),
SunAmerica Blue Chip Growth Fund ("Blue Chip Growth Fund"), SunAmerica Mid-
Cap Growth Fund ("Mid-Cap Growth Fund"), SunAmerica Small Company Growth
Fund ("Small Company Growth Fund"), SunAmerica Global Balanced Fund
("Global Balanced Fund") and SunAmerica Growth and Income Fund ("Growth and
Income Fund"). The Funds are considered to be separate entities for
financial and tax reporting purposes. The investment objective for each of
the Funds is as follows:
Balanced Assets seeks to conserve principal by maintaining at all times a
balanced portfolio of stocks and bonds.
Blue Chip Growth seeks capital appreciation by investing primarily in
equity securities of companies with large market capitalizations.
Mid-Cap Growth seeks capital appreciation by investing primarily in equity
securities of medium-sized companies.
Small Company Growth seeks capital appreciation by investing primarily in
equity securities of small capitalization growth companies.
Global Balanced seeks capital appreciation while conserving principal by
maintaining at all times a balanced portfolio of domestic and foreign
stocks and bonds.
Growth and Income seeks capital appreciation and current income by
investing primarily in common stocks.
Each Fund currently offers two classes of shares. Balanced Assets Fund and
Small Company Growth Fund offer Class Z shares, exclusively for sale to
employees participating in the SunAmerica profit sharing and retirement
plan. 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. Class Z shares are offered
at net asset value. 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. Class A shares and Class B shares each
make distribution and account maintenance and service fee payments under
the distribution plans pursuant to Rule 12b-1 under the Investment Company
Act of 1940 (the "1940 Act"), except that Class B shares are subject to
higher distribution fee rates. There are no distribution or service fee
payments applicable to Class Z.
30
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1997 (unaudited) -- (continued)
Note 2. Significant Accounting Policies
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from these estimates. The
following is a summary of the significant accounting policies followed by
the 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. If there is no sale on that day, then securities are
valued at the closing bid price on the NYSE or other primary exchange for
that day. However, if the last sale price on the NYSE is different than the
last sale price on any other exchange, the NYSE price is used. Securities
that are traded on foreign exchanges are ordinarily valued at the last
quoted sales price available before the time when the assets are valued. If
a security's price is available from more than one foreign exchange, a Fund
uses the exchange that is the primary market for the security. Values of
portfolio securities primarily traded on foreign exchanges are already
translated into U.S. dollars when received from a quotation service.
Options traded on national securities exchanges are valued as of the close
of the exchange on which they are traded. Futures and options traded on
commodities exchanges are valued at their last sale price as of the close
of such exchange. The 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 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.
As of March 31, 1997, Balanced Assets Fund, Blue Chip Growth Fund, Small
Company Growth Fund, Global Balanced Fund and Growth and Income Fund had a
15.8%, 9.9%, 31.3%, 1.7%, and 6.7% undivided interest, respectively, which
represented $11,942,000, $7,498,000, $23,656,000, $1,300,000, and
$5,044,000, respectively, in principal amount in a joint repurchase
agreement with
31
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1997 (unaudited) -- (continued)
Yamaichi International Inc. As of such date, the repurchase agreement in
the joint account and the collateral therefore were as follows:
Yamaichi International, Inc. Repurchase Agreement 6.1% dated 3/31/97, in
the principal amount of $75,499,000 repurchase price $75,511,793 due
04/01/97 collateralized by $19,000,000 U.S. Treasury Bond 7.625% due
2/15/07, $19,400,000 U.S. Treasury Note 7.875% due 11/15/04, $20,675,000
U.S. Treasury Note 6.375% due 3/31/01, $16,230,000 U.S. T-bill 5.42% due
9/18/97, approximate aggregate value $77,014,143.
SECURITIES TRANSACTIONS, INVESTMENT INCOME, DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS: Securities transactions are recorded on the first business
day following 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. Funds investing in foreign securities may be subject to
taxes imposed by countries in which it invests. Such taxes are generally
based on either income or gains earned or repatriated. The Fund accrues
such taxes when the related income is earned. The Equity Funds, except for
the Global Balanced Fund and the Growth and Income Fund, do not amortize
premiums or accrue discounts except for 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 (or 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).
Expenses common to all Funds, not directly related to individual Funds, are
allocated among the Equity Funds based upon their relative net asset value
or other appropriate methods.
Dividends from net investment income, if any, are paid semiannually, except
for Balanced Assets Fund and Growth and Income Fund, which pay quarterly,
and Global Balanced Fund, which pays annually. Capital gain distributions,
if any, are paid annually.
The Funds record dividends and distributions to its shareholders on the ex-
dividend date. The amount of dividends and distributions from net
investment income and net realized capital gains are determined and
presented in accordance with federal income tax regulations, which may
differ from generally accepted accounting principles. These "book/tax"
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are
reclassified within the capital accounts based on their federal tax-basis
treatment; temporary differences do not require reclassification. The
following table discloses the year ended September 30, 1996
reclassifications between paid in capital, accumulated undistributed net
investment income/loss and accumulated undistributed net realized gain/loss
on investments.
32
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
ACCUMULATED ACCUMULATED
UNDISTRIBUTED UNDISTRIBUTED PAID
NET REALIZED NET INVESTMENT IN
GAIN/LOSS INCOME/LOSS CAPITAL
------------- -------------- -----------
<S> <C> <C> <C>
Balanced Assets Fund............... $ (1,024) $ 1,024 $ --
Blue Chip Growth Fund.............. (408,630) 408,630 --
Mid-Cap Growth Fund................ (399,630) 425,977 (26,347)
Small Company Growth Fund.......... -- 1,857,708 (1,857,708)
Global Balanced Fund............... (704,902) 704,902 --
Growth and Income Fund............. (21,903) 21,903 --
</TABLE>
FOREIGN CURRENCY TRANSACTION: The books and records of the Fund are
maintained in U.S. dollars.
Assets and liabilities denominated in foreign currencies and commitments
under forward foreign currency contracts are translated into U.S. dollars
at the mean of the quoted bid and asked prices of such currencies against
the U.S. dollar.
The Fund does not isolate that portion of the results of operations arising
as a result of changes in the foreign exchange rates from the changes in
the market prices of securities held at fiscal year-end. Similarly, the
Fund does not isolate the effect of changes in foreign exchange rates from
the changes in the market prices of portfolio securities sold during the
year.
Realized foreign exchange gains and losses on other assets and liabilities
and change in unrealized foreign exchange gains and losses on other assets
and liabilities include foreign exchange gains and losses from currency
gains or losses between the trade and settlement dates of securities
transactions, the difference between the amounts of interest, dividends and
foreign withholding taxes recorded on the 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.
ORGANIZATIONAL EXPENSES: Costs incurred by SAAMCo in connection with the
organization of Global Balanced Fund and Growth and Income Fund amounted to
$4,347 and $1,383, respectively. These costs are being amortized on a
straight line basis by the Funds over a period not to exceed 60 months from
the date the Funds commenced operations.
Note 3. 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 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
33
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1997 (unaudited) -- (continued)
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, 1997, SAAMCo earned fees in the amounts stated on
the Statement of Operations, of which SAAMCo agreed to voluntarily
reimburse $37,787 and $89,267 on the Global Balanced Fund and Growth and
Income Fund, respectively. In addition to the aforementioned, SAAMCo, on
behalf of SunAmerica Global Balanced Fund, entered into Sub-Advisory
Agreements with AIG Global Investment Corp. ("AIG Global") under which AIG
Global acts as sub-adviser.
SAAMCo pays AIG Global a monthly fee with respect to those net assets of
the Global Balanced Fund actually managed by AIG Global computed based on
average daily net assets at the following annual rates: .50% on the first
$50 million of such assets, .40% of the next $100 million of such assets,
.30% on the next $150 million of such assets, and .25% of such assets in
excess of $300 million. For the six months ended March 31, 1997, SAAMCo
paid AIG Global fees of $35,150.
For the six months ended March 31, 1997, SAAMCo has agreed to voluntarily
reimburse expenses, excluding management fee reimbursements which are
stated separately in the Notes, as follows:
<TABLE>
<S> <C>
Balanced Assets Class Z.......................................... $2,237
Small Company Class Z............................................ $2,145
Global Balanced Class A.......................................... $1,464
Growth and Income Class B........................................ $1,226
</TABLE>
The Trust, on behalf of each Fund, has a Distribution Agreement with
SunAmerica Capital Services, Inc. ("SACS"), an indirect wholly owned
subsidiary of SunAmerica Inc. Each Fund has adopted a Distribution Plan
(the "Plan") in accordance with the provisions of Rule 12b-1 under the 1940
Act. Rule 12b-1 under the Act permits an investment company directly or
indirectly to pay expenses associated with the distribution of its shares
("distribution expenses") in accordance with a plan adopted by the
investment company's board of trustees 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 and Class B Plan, the Distributor receives payments
from a Fund at an annual rate of up to 0.10% and 0.75%, respectively, of
average daily net assets of such Fund's Class A and Class B shares to
compensate the Distributor and certain securities firms for providing sales
and promotional activities for distributing that class of shares. The
distribution costs for which the Distributor may be reimbursed out of such
distribution fees include fees paid to broker-dealers that have sold Fund
shares, commissions and other expenses such as those incurred for sales
literature,
34
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1997 (unaudited) -- (continued)
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 up to an annual rate of 0.25% of the aggregate average daily
net assets of such class of shares for payments to broker-dealers for
providing continuing account maintenance. Accordingly, for the six months
ended March 31, 1997, SACS received fees (see Statement of Operations)
based upon the aforementioned rates.
SACS receives sales charges on each Fund's Class A shares, portions of
which are reallowed to affiliated broker-dealers and non-affiliated broker-
dealers. SACS also receives the proceeds of contingent deferred sales
charges paid by investors in connection with certain redemptions of each
Fund's Class B shares. SACS has advised the Funds that for the six months
ended March 31, 1997 the proceeds received from Class A sales (and paid out
to affiliated and non-affiliated broker-dealers) and Class B redemptions
are as follows:
<TABLE>
<CAPTION>
CLASS A CLASS B
-------------------------------------- -------------------
SALES AFFILIATED NON-AFFILIATED CONTINGENT DEFERRED
CHARGES BROKER-DEALERS BROKER-DEALERS SALES CHARGES
-------- -------------- -------------- -------------------
<S> <C> <C> <C> <C>
Balanced Assets Fund.... $ 79,335 $ 25,282 $ 6,761 $192,818
Blue Chip Growth Fund... 39,242 23,093 11,266 36,249
Mid-Cap Growth Fund..... 48,233 25,929 15,751 26,010
Small Company Growth
Fund................... 668,701 348,673 229,610 139,274
Global Balanced Fund.... 20,402 14,287 3,283 19,928
Growth and Income Fund.. 311,774 172,092 96,300 27,098
</TABLE>
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, which permits the Funds to compensate SAFS for services rendered
based upon an annual rate of 0.22% of average daily net assets, is approved
annually by the Trustees. For the six months ended March 31, 1997, the
Funds incurred the following expenses which are included in transfer agent
fees in the Statement of Operations to compensate SAFS pursuant to the
terms of the Service Agreement.
<TABLE>
<CAPTION>
PAYABLE AT
EXPENSE MARCH 31, 1997
----------------- ---------------
CLASS A CLASS B CLASS A CLASS B
-------- -------- ------- -------
<S> <C> <C> <C> <C>
Balanced Assets Fund...................... $166,038 $186,811 $29,122 $30,621
Blue Chip Growth Fund..................... 59,292 40,217 10,615 7,041
Mid-Cap Growth Fund....................... 47,175 15,356 7,940 2,436
Small Company Growth Fund................. 175,154 119,702 27,871 18,397
Global Balanced Fund...................... 10,702 17,700 1,692 2,920
Growth and Income Fund.................... 34,239 26,907 7,006 5,809
</TABLE>
35
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1997 (unaudited) -- (continued)
Note 4. Purchases and Sales of Investment Securities
The aggregate cost of purchases and proceeds from sales and maturities of
investments (excluding U.S. Government securities and short-term
investments) during the six months ended March 31, 1997 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..... $213,554,504 $102,124,218 $85,912,523 $383,958,137 $6,829,270 $75,011,378
============ ============ =========== ============ ========== ===========
Aggregate sales......... $209,548,839 $105,266,174 $89,273,302 $395,862,552 $8,668,703 $46,782,956
============ ============ =========== ============ ========== ===========
</TABLE>
Note 5. Portfolio Securities
The Funds intend to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and distribute all of its
taxable income, including any net realized gain on investments, to its
shareholders. Therefore, no federal tax provision is required.
The amounts of aggregate unrealized gain (loss) and the cost of investment
securities, including short-term securities, were as follows:
<TABLE>
<CAPTION>
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.................... $297,421,790 $85,056,861 $43,071,462 $210,999,789 $22,765,458 $65,205,205
============ =========== =========== ============ =========== ===========
Appreciation............ $ 21,533,522 $ 6,593,958 $ 5,763,251 $ 25,661,037 $ 2,893,104 $ 3,808,761
Depreciation............ (8,538,449) (3,526,539) (1,104,484) (7,725,360) (1,801,036) (1,817,131)
------------ ----------- ----------- ------------ ----------- -----------
Net unrealized
appreciation........... $ 12,995,073 $ 3,067,419 $ 4,658,767 $ 17,935,677 $ 1,092,068 $ 1,991,630
============ =========== =========== ============ =========== ===========
</TABLE>
At September 30, 1996, Global Balanced Fund had net capital loss
carryforwards of $217,014 which are available to the extent provided in
regulations to offset future capital gains of which $17,364 will expire in
2003 and $199,650 will expire in 2004. To the extent that these
carryforwards are used to offset future capital gains, it is probable that
the gains so offset will not be distributed.
36
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1997 (unaudited) -- (continued)
Note 6. Open Forward Currency Contracts
At March 31, 1997, the Global Balanced Fund engaged in the trading of
forward foreign currency contracts ("forward contracts") in order to hedge
against changes in future foreign exchange rates and enhance return.
Forward contracts involve elements of market risk in excess of the amount
reflected in the Statement of Assets and Liabilities. The Fund bears the
risk of an unfavorable change in the foreign exchange rate underlying the
forward contract. Global Balanced Fund held the following forward currency
contracts at March 31, 1997:
<TABLE>
<CAPTION>
GROSS
CONTRACT IN DELIVERY UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
---------------------- ------------------------- -------- ------------
<S> <C> <C> <C> <C> <C>
*USD 247,595 DEM 420,664 4/14/97 $ 4,846
CAD 216,167 USD 158,040 4/16/97 1,736
JPY 300,000,000 USD 2,461,034 6/12/97 9,314
--------
15,896
--------
<CAPTION>
GROSS
UNREALIZED
DEPRECIATION
------------
<S> <C> <C> <C> <C> <C>
IEP 107,348 USD 169,460 4/3/97 $ (961)
DEM 2,044,653 USD 1,212,149 4/4/97 (14,001)
BEF 3,467,742 USD 99,464 4/7/97 (1,389)
*DEM 420,664 USD 247,960 4/14/97 (4,481)
GBP 420,664 USD 671,170 4/14/97 (20,834)
ESP 10,484,525 USD 73,083 4/21/97 (1,122)
ITL 421,970,840 USD 248,730 4/21/97 (4,114)
SEK 3,074,685 USD 397,169 4/21/97 (11,208)
DKK 1,109,003 USD 173,460 4/24/97 (1,258)
FRF 782,303 USD 138,230 4/24/97 (1,332)
AUD 94,642 USD 74,067 4/28/97 (99)
DEM 2,000,000 USD 1,170,275 6/12/97 (34,913)
--------
(95,712)
--------
Net Depreciation....................................... $(79,816)
========
</TABLE>
*Represents open forward foreign currency contracts and offsetting open
forward foreign currency contracts that do not have additional market risk
but have continued counterparty settlement risk.
AUD--Australian Dollar ESP--Spanish Peseta ITL--Italian Lira
BEF--Belgian Franc FRF--French Franc JPY--Japanese Yen
CAD--Canadian Dollar GBP--Great Britain Pound SEK--Swedish Krona
DEM--Deutsche Mark IEP--Irish Punt USD--United States
DKK--Danish Kroner Dollar
37
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1997 (unaudited) -- (continued)
Note 7. Capital Share Transactions
At March 31, 1997, the Adviser and SACS in the aggregate, owned 878,013
Class A shares of the Growth and Income Fund representing 14.26% of the
Fund's net assets.
Transactions in capital shares of each class of each series were as
follows:
<TABLE>
<CAPTION>
BALANCED ASSETS FUND
--------------------------------------------------------------------------------------------------------
CLASS A CLASS B
---------------------------------------------------- --------------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE
MARCH 31, 1997 YEAR ENDED MARCH 31, 1997 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1996 (UNAUDITED) SEPTEMBER 30, 1996
-------------------------- ------------------------ ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------ ------------- ---------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 1,300,894 $ 20,607,206 3,119,474 $ 50,864,950 890,637 $ 14,253,340 3,055,442 $ 49,865,609
Reinvested
dividends...... 980,977 15,775,166 583,832 9,290,744 1,111,715 17,563,059 690,103 10,949,550
Shares redeemed. (1,454,453) (24,143,227) (2,257,335) (36,956,739) (2,165,648) (35,687,999) (3,430,716) (55,757,942)
----------- ------------- ---------- ------------ ---------- ------------ ---------- ------------
Net increase
(decrease)..... 827,418 $ 12,239,145 1,445,971 $ 23,198,955 (163,296) $ (3,871,600) 314,829 $ 5,057,217
=========== ============= ========== ============ ========== ============ ========== ============
<CAPTION>
BALANCED ASSETS FUND
--------------------------
CLASS Z
--------------------------
FOR THE PERIOD
OCTOBER 7, 1996* THROUGH
MARCH 31, 1997
(UNAUDITED)
--------------------------
SHARES AMOUNT
------------ -------------
<S> <C> <C>
Shares sold..... 1,129 $ 18,945
Reinvested
dividends...... 76 1,169
Shares redeemed. (28) (452)
----------- -------------
Net increase.... 1,177 $ 19,662
=========== =============
<CAPTION>
BLUE CHIP GROWTH FUND
--------------------------------------------------------------------------------------------------------
CLASS A CLASS B
---------------------------------------------------- --------------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE
MARCH 31, 1997 YEAR ENDED MARCH 31, 1997 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1996 (UNAUDITED) SEPTEMBER 30, 1996
-------------------------- ------------------------ ------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------ ------------- ---------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 357,060 $ 6,044,189 753,893 $ 12,709,149 908,161 $ 15,199,458 3,214,655 $ 53,717,531
Reinvested
dividends...... 455,715 6,972,433 285,095 4,507,347 319,328 4,764,383 277,108 4,315,647
Shares redeemed. (364,060) (6,158,172) (533,503) (8,978,653) (1,238,212) (20,291,094) (3,702,537) (61,373,567)
----------- ------------- ---------- ------------ ---------- ------------ ---------- ------------
Net increase
(decrease)..... 448,715 $ 6,858,450 505,485 $ 8,237,843 (10,723) $ (327,253) (210,774) $ (3,340,389)
=========== ============= ========== ============ ========== ============ ========== ============
</TABLE>
* Inception of the class
38
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
MID-CAP GROWTH FUND
----------------------------------------------------------------------------------------------------------
CLASS A CLASS B
----------------------------------------------------- ---------------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE
MARCH 31, 1997 YEAR ENDED MARCH 31, 1997 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1996 (UNAUDITED) SEPTEMBER 30, 1996
-------------------------- ------------------------- ------------------------ -------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------ ------------- ---------- ------------- ---------- ------------ ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 657,487 $ 11,790,903 585,749 $ 10,047,757 203,348 $ 3,581,412 1,569,285 $ 26,612,848
Reinvested
dividends...... 105,243 1,820,690 262,450 4,236,039 35,395 598,248 66,071 1,049,943
Shares redeemed. (758,893) (13,628,298) (609,879) (10,404,579) (296,425) (5,154,253) (1,386,338) (23,587,448)
----------- ------------- ---------- ------------- ---------- ------------ ---------- -------------
Net increase
(decrease)..... 3,837 $ (16,705) 238,320 $ 3,879,217 (57,682) $ (974,593) 249,018 $ 4,075,343
=========== ============= ========== ============= ========== ============ ========== =============
<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, 1997 YEAR ENDED MARCH 31, 1997 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1996 (UNAUDITED) SEPTEMBER 30, 1996
-------------------------- ------------------------- ------------------------ -------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------ ------------- ---------- ------------- ---------- ------------ ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 2,030,100 $ 48,763,091 6,607,402 $ 153,907,782 1,108,316 $ 26,188,678 6,285,098 $ 144,713,218
Reinvested
dividends...... 231,823 5,468,761 725,288 15,398,224 165,485 3,806,222 543,295 11,327,669
Shares redeemed. (2,233,363) (53,069,598) (4,425,505) (102,867,176) (1,378,297) (32,047,346) (5,086,621) (116,292,585)
----------- ------------- ---------- ------------- ---------- ------------ ---------- -------------
Net increase
(decrease)..... 28,560 $ 1,162,254 2,907,185 $ 66,438,830 (104,496) $ (2,052,446) 1,741,772 $ 39,748,302
=========== ============= ========== ============= ========== ============ ========== =============
<CAPTION>
SMALL COMPANY
GROWTH FUND
--------------------------
CLASS Z
--------------------------
FOR THE PERIOD
OCTOBER 7, 1996* THROUGH
MARCH 31, 1997
(UNAUDITED)
--------------------------
SHARES AMOUNT
------------ -------------
<S> <C> <C>
Shares sold..... 21,284 $ 519,531
Reinvested
dividends...... 300 7,070
Shares redeemed. (916) (21,073)
----------- -------------
Net increase.... 20,668 $ 505,528
=========== =============
</TABLE>
* Inception of the class
39
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1997 (unaudited) -- (continued)
<TABLE>
<CAPTION>
GLOBAL BALANCED FUND
----------------------------------------------------------------------------------------------
CLASS A CLASS B
---------------------------------------------- ----------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE
MARCH 31, 1997 YEAR ENDED MARCH 31, 1997 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1996 (UNAUDITED) SEPTEMBER 30, 1996
---------------------- ---------------------- ---------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------- ----------- --------- ----------- --------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold............. 115,600 $ 899,899 419,512 $ 3,129,820 271,276 $ 2,096,591 771,725 $ 5,700,564
Reinvested dividends.... 36,605 277,832 63,292 449,372 48,520 366,812 93,522 662,149
Shares redeemed......... (318,105) (2,483,724) (488,115) (3,602,549) (431,205) (3,333,318) (672,645) (4,972,923)
--------- ----------- --------- ----------- --------- ----------- --------- -----------
Net increase (decrease). (165,900) $(1,305,993) (5,311) $ (23,357) (111,409) $ (869,915) 192,602 $ 1,389,790
========= =========== ========= =========== ========= =========== ========= ===========
<CAPTION>
GROWTH AND INCOME FUND
----------------------------------------------------------------------------------------------
CLASS A CLASS B
---------------------------------------------- ----------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE
MARCH 31, 1997 YEAR ENDED MARCH 31, 1997 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1996 (UNAUDITED) SEPTEMBER 30, 1996
---------------------- ---------------------- ---------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------- ----------- --------- ----------- --------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold............. 1,366,758 $14,979,321 1,608,366 $15,926,962 1,956,963 $21,300,472 1,180,720 $11,686,226
Reinvested dividends.... 118,133 1,248,669 32,680 297,897 86,070 908,039 19,593 176,116
Shares redeemed......... (159,246) (1,782,616) (46,202) (441,023) (547,446) (5,909,520) (172,820) (1,683,504)
--------- ----------- --------- ----------- --------- ----------- --------- -----------
Net increase............ 1,325,645 $14,445,374 1,594,844 $15,783,836 1,495,587 $16,298,991 1,027,493 $10,178,838
========= =========== ========= =========== ========= =========== ========= ===========
</TABLE>
Note 8. 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, the
Funds' custodian, with interest payable at the Federal Funds rate plus 100
basis points. Borrowings under the line of credit will commence when the
respective Fund's cash shortfall exceeds $100,000.
Note 9. 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, but in no event
for a period greater than 10 years, each Eligible Trustee will be credited
with an amount equal to 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. In addition, an
amount equal to 8.5% of any amounts credited under the preceding clause
during prior years, is added to each Eligible Trustee's account until such
Eligible Trustee reaches his or her 70th birthday. An Eligible Trustee may
receive any benefits payable under
40
<PAGE>
SUNAMERICA EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS -- March 31, 1997 (unaudited) -- (continued)
the Retirement Plan, at his or her election, either in one lump sum or in
up to fifteen annual installments. As of March 31, 1997, Balanced Assets
Fund, Blue Chip Growth Fund, Mid-Cap Growth Fund, Small Company Growth
Fund, Global Balanced Fund and Growth and Income Fund had accrued $21,229,
$6,660, $3,657, $12,531, $1,753 and $947, respectively, for the Retirement
Plan, which is included in accrued expenses on the Statement of Assets and
Liabilities, and for the six months ended March 31, 1997 expensed $6,198,
$1,788, $1,119, $4,557, $495 and $651, respectively, for the Retirement
Plan, which is included in Trustees' fees and expenses on the Statement of
Operations.
41
<PAGE>
TRUSTEES INVESTMENT ADVISER
S. James Coppersmith SunAmerica Asset Management Corp.
Samuel M. Eisenstat The SunAmerica Center
Stephen J. Gutman 733 Third Avenue
Peter A. Harbeck New York, NY 10017-3204
Peter McMillan III
Sebastiano Sterpa SUB-ADVISER
AIG Global Investment Corp. 70 Pine
OFFICERS Street New York, NY 10270
Peter A. Harbeck, President
Stanton J. Feeley, Executive Vice President DISTRIBUTOR
Nancy Kelly, Vice President SunAmerica Capital Services, Inc.
Audrey L. Snell, Vice President The SunAmerica Center
Gerard P. Sullivan, Vice President 733 Third Avenue
Robert M. Zakem, Secretary New York, NY 10017-3204
Peter C. Sutton, Treasurer
Donna M. Handel, Assistant Treasurer SHAREHOLDER SERVICING AGENT
John T. Genoy, Assistant Treasurer SunAmerica Fund Services, Inc.
Abbe P. Stein, Assistant Secretary The SunAmerica Center
733 Third Avenue
CUSTODIAN AND TRANSFER AGENT New York, NY 10017-3204
State Street Bank & Trust Company
P.O. Box 419572
Kansas City, MO 64141-6572
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
BULK RATE
SUNAMERICA EQUITY FUNDS U.S. POSTAGE
THE SUNAMERICA CENTER PAID
733 THIRD AVENUE Kansas City,
NEW YORK, NY 10017-3204 MO
1-800-858-8850 PERMIT NO.
3657
This report is submitted solely for
the general information of
shareholders of the Fund.
Distribution of this report to
persons other than shareholders of
the Fund is authorized only in
connection with a currently effective
prospectus, setting forth details of
the Fund, which must precede or
accompany this report.
The accompanying report has not been
examined by independent accountants
and accordingly no opinion has been
expressed thereon.
SPONSORED BY:
[LOGO] SUN AMERICA
ASSET MANAGEMENT
EFANN
