Report of Independent Auditors
To the Shareholders and
Board of Trustees of
SunAmerica Equity Funds
In planning and performing our audit of the financial
statements of SunAmerica Equity Funds (comprising the
SunAmerica Balanced Assets Fund, SunAmerica Blue Chip
Growth Fund, SunAmerica Growth Opportunities Fund,
SunAmerica New Century Fund, SunAmeica Growth and
Income Fund and SunAmerica "Dogs" of Wall Street Fund)
(collectively, the "Trust") for the year ended September
30, 2000, we considered its internal control, including
control activities for safeguarding securities, to determine
our auditing procedures for the purpose of expressing our
opinion on the financial statements and to comply with the
requirements of Form N-SAR, and not to provide assurance on
internal control.
The management of the Trust is responsible for establishing and
maintaining internal control. In fulfilling this responsibility,
estimates and judgments by management are required to assess
the expected benefits and related costs of control. Generally,
internal controls that are relevant to an audit pertain to the entity's
objective of preparing financial statements for external purposes
that are fairly presented in conformity with generally accepted
accounting principles. Those internal controls include the
safeguarding of assets against unauthorized acquisition, use, or
disposition.
Because of inherent limitations in internal control, misstatements due
to errors or fraud may occur and not be detected. Also, projections of
any evaluation of internal control to future periods are subject to the
risk that internal control may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Our consideration of internal control would not necessarily disclose all
matters in internal control that might be material weaknesses under
standards established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which the design
or operation of one or more of the specific internal control components
does not reduce to a relatively low level the risk that errors or fraud
in amounts that would be material in relation to the financial statements
being audited may occur and not be detected within a timely
period by employees in the normal course of performing their
assigned functions. However, we noted no matters involving internal
control, including control activities for safeguarding securities, and its
operation that we consider to be material weaknesses as defined
above at September 30, 2000.
This report is intended solely for the information and use of the
Board of Trustees and management of the SunAmerica Equity
Funds and the Securities and Exchange Commission and is not
to be and should not be used by anyone other than these specified
parties.
ERNST & YOUNG LLP
November 15, 2000
