<PAGE> 1
As filed with the Securities and Exchange Commission on December 30, 1996
File Nos. 33-52742; 811-7238
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933 / /
PRE-EFFECTIVE AMENDMENT NO. / /
POST-EFFECTIVE AMENDMENT NO. 9 / /
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY
ACT OF 1940 / /
AMENDMENT NO. 11 / /
(CHECK APPROPRIATE BOX OR BOXES)
SUNAMERICA SERIES TRUST
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
1 SunAmerica Center, Century City
Los Angeles, CA 90067-6022
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE)(ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (800) 858-8850
Robert M. Zakem, Esq.
Senior Vice President and General Counsel
SunAmerica Asset Management Corp.
The SunAmerica Center
733 Third Avenue
New York, NY 10017-3204
(NAME AND ADDRESS OF AGENT FOR SERVICE)
Copies to:
Susan L. Harris, Esq. Margery K. Neale, Esq.
SunAmerica Inc. Shereff, Friedman, Hoffman & Goodman LLP
1 SunAmerica Center, Century City 919 Third Avenue
Los Angeles, CA 90067-6022 New York, NY 10022
IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE (CHECK APPROPRIATE BOX)
/X/ immediately upon filing pursuant to paragraph (b)
/ / on (date) pursuant to paragraph (b)
/ / 75 days after filing pursuant to paragraph (a)
/ / on (date) pursuant to paragraph (a) of Rule 485
--------------------
The Registrant has elected to register an indefinite number of shares
of beneficial interest, without par value, under the Securities Act of 1933
pursuant to Rule 24f-2 under the Investment Company Act of 1940, as amended. The
Rule 24f-2 Notice for the Registrant's fiscal year ended November 30, 1995 was
filed on January 23, 1996.
===============================================================================
<PAGE> 2
SUNAMERICA SERIES TRUST
Supplement to the Prospectus dated June 3, 1996
The date of the Prospectus is hereby changed to December 30, 1996.
The following financial information replaces the financial information
under the heading entitled "Financial Highlights" on pages 4 and 5 of the
Prospectus.
December 30, 1996
<PAGE> 3
FINANCIAL HIGHLIGHTS
The following Financial Highlights for the Portfolios and
periods set forth below have been audited (except where noted) by Price
Waterhouse LLP, the Trust's independent accountants, whose report on the
financial statements containing such information is included in the Trust's
Annual Report to Shareholders. These Financial Highlights* should be read in
conjunction with the financial statements and notes thereto, which are included
in the Statement of Additional Information.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Net Total Dividends Dividends Net Net
Asset Net Net realized from declared from net Asset Assets
Value invest- & urealized invest- from net realized Value end of
Period beginning ment gain (loss) on ment investment gain on end of Total period
ended of period income** investments operations income investments period Return*** (000's)
- --------------------------------------------------------------------------------------------------------------------------------
Cash Management Portfolio
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2/9/93-
11/30/93 $10.00 $0.19 $ 0.01 $ 0.20 $ -- $ -- $10.20 2.00% $ 24,603
11/30/94 10.20 0.38 (0.02) 0.36 (0.09) -- 10.47 3.51 89,098
11/30/95 10.47 0.56 0.01 0.57 (0.34) -- 10.70 5.59 90,731
11/30/96# 10.70 0.53 (0.02) 0.51 (0.45) -- 10.76 4.92 91,247
<CAPTION>
Global Bond Portfolio
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/1/93-
11/30/93 10.00 0.13 0.17 0.30 -- -- 10.30 3.00 25,010
11/30/94 10.30 0.53 (0.86) (0.33) (0.09) (0.05) 9.83 (3.18) 44,543
11/30/95 9.83 0.60 0.97 1.57 (0.38) -- 11.02 16.40 59,759
11/30/96# 11.02 0.59 0.54 1.13 (0.75) -- 11.40 10.94 68,221
<CAPTION>
Corporate Bond Portfolio
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/1/93-
11/30/93 10.00 0.14 0.05 0.19 -- -- 10.19 1.90 11,667
11/30/94 10.19 0.52 (0.87) (0.35) (0.05) (0.04) 9.75 (3.41) 15,869
11/30/95 9.75 0.60 1.00 1.60 (0.53) -- 10.82 17.01 29,475
11/30/96# 10.82 0.65 0.03 0.68 (0.41) -- 11.09 6.51 37,207
<CAPTION>
High-Yield Bond Portfolio
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2/9/93-
11/30/93 10.00 0.76 0.36 1.12 -- -- 11.12 11.20 41,851
11/30/94 11.12 1.20 (1.65) (0.45) (0.29) (0.06) 10.32 (4.26) 55,803
11/30/95 10.32 1.11 0.12 1.23 (1.02) -- 10.53 12.64 82,174
11/30/96# 10.53 0.98 0.48 1.46 (0.95) -- 11.04 14.86 113,229
<CAPTION>
Worldwide High Income Portfolio
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/28/94-
11/30/94 10.00 0.04 (0.09) (0.05) -- -- 9.95 (0.50) 10,478
11/30/95 9.95 1.10 0.47 1.57 (0.10) -- 11.42 16.02 21,515
11/30/96# 11.42 1.25 1.60 2.85 (0.87) (0.05) 13.35 26.87 49,204
<CAPTION>
SunAmerica Balanced Portfolio
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/3/96-
11/30/96# 10.00 0.09 1.04 1.13 -- -- 11.13 11.30 10,224
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Ratio of net
Ratio of investment
expenses to income to Average
Period average net average net Portfolio commission
ended assets assets turnover per share@
- --------------------------------------------------------------------------------
Cash Management Portfolio
<S> <C> <C> <C> <C>
2/9/93-
11/30/93 0.71%+ ++ 2.53%+ ++ --% NA
11/30/94 0.70++ 3.73++ -- NA
11/30/95 0.67 5.32 -- NA
11/30/96# 0.62 4.90 -- NA
<CAPTION>
Global Bond Portfolio
<S> <C> <C> <C> <C>
7/1/93-
11/30/93 1.35+++ 3.56+ ++ 84 NA
11/30/94 1.06 5.29 347 NA
11/30/95 0.95 5.89 339 NA
11/30/96# 0.89 5.44 223 NA
<CAPTION>
Corporate Bond Portfolio
<S> <C> <C> <C> <C>
7/1/93-
11/30/93 0.94+ ++ 3.92+ ++ 208 NA
11/30/94 0.94++ 5.21++ 419 NA
11/30/95 0.96++ 5.93++ 412 NA
11/30/96# 0.97 6.11 338 NA
<CAPTION>
High-Yield Bond Portfolio
<S> <C> <C> <C> <C>
2/9/93-
11/30/93 0.94+ ++ 9.43+ ++ 229 NA
11/30/94 0.92++ 11.07++ 225 NA
11/30/95 0.80 10.80 174 NA
11/30/96# 0.77 9.41 107 NA
<CAPTION>
Worldwide High Income Portfolio
<S> <C> <C> <C> <C>
10/28/94-
11/30/94 1.60+ ++ 4.48+ ++ 2 NA
11/30/95 1.30 10.46 176 NA
11/30/96# 1.16 10.50 177 NA
<CAPTION>
SunAmerica Balanced Portfolio
<S> <C> <C> <C> <C>
6/3/96-
11/30/96# 1.00+ ++ 1.92+ ++ 35 .0600
</TABLE>
- ----------
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of
Anchor National Life Insurance Company and First SunAmerica Life
Insurance Company. If such expenses had been included, total return
would have been lower for each period presented.
@ 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.
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995 and 1996,
the investment adviser waived a portion of or all fees and assumed a
portion of or all expenses for the Portfolios. If all fees and expenses
had been incurred by the Portfolios, the ratio of expenses to average
net assets and the ratio of net investment income to average net
assets would have been as follows:
<TABLE>
<CAPTION>
Expenses Net Investment Income
--------------------------------- ----------------------------------
1993 1994 1995 1996# 1993 1994 1995 1996#
--------------------------------- ----------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Cash Management Portfolio........................ 1.10% 0.78% 0.67% 0.62% 2.14% 3.65% 5.32% 4.90%
Global Bond Portfolio............................ 1.81 1.06 0.95 0.89 3.10 5.29 5.89 5.44
Corporate Bond Portfolio......................... 1.81 1.09 0.97 0.97 3.05 5.06 5.92 6.11
High-Yield Bond Portfolio........................ 1.29 0.93 0.80 0.77 9.08 11.06 10.80 9.41
Worldwide High Income Portfolio.................. -- 2.26 1.30 1.16 -- 3.82 10.46 10.50
SunAmerica Balanced Portfolio.................... -- -- -- 1.43 -- -- -- 1.49
</TABLE>
# Unaudited
<PAGE> 4
The following Financial Highlights for the Portfolios and
periods set forth below have been audited (except where noted) by Price
Waterhouse LLP, the Trust's independent accountants, whose report on the
financial statements containing such information is included in the Trust's
Annual Report to Shareholders. These Financial Highlights* should be read in
conjunction with the financial statements and notes thereto, which are included
in the Statement of Additional Information.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Net Total Dividends Dividends Net Net
Asset Net Net realized from declared from net Asset Assets
Value invest- & urealized invest- from net realized Value end of
Period beginning ment gain (loss) on ment investment gain on end of Total period
ended of period income** investments operations income investments period Return*** (000's)
- --------------------------------------------------------------------------------------------------------------------------
Balanced/Phoenix Investment Counsel Portfolio
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/28/94-
11/30/94 $10.00 $0.04 $(0.08) $(0.04) $ -- $ -- $ 9.96 (0.40)% $ 1,516
11/30/95 9.96 0.34 2.23 2.57 (0.05) -- 12.48 25.89 32,429
11/30/96# 12.48 0.34 1.31 1.65 (0.19) (0.31) 13.63 13.75 70,021
<CAPTION>
Asset Allocation Portfolio
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/1/93-
11/30/93 10.00 0.08 0.28 0.36 -- -- 10.36 3.60 35,590
11/30/94 10.36 0.29 (0.25) 0.04 (0.05) (0.03) 10.32 0.30 106,856
11/30/95 10.32 0.42 2.24 2.66 (0.20) (0.04) 12.74 26.10 199,836
11/30/96# 12.74 0.48 2.00 2.48 (0.31) (0.39) 14.52 20.27 316,388
<CAPTION>
Utility Portfolio
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/3/96-
11/30/96# 10.00 0.20 0.55 0.75 -- -- 10.75 7.50 6,299
<CAPTION>
Growth-Income Portfolio
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2/9/93-
11/30/93 10.00 0.12 0.49 0.61 -- -- 10.61 6.10 45,080
11/30/94 10.61 0.13 (0.36) (0.23) (0.04) (0.01) 10.33 (2.20) 84,899
11/30/95 10.33 0.17 3.31 3.48 (0.10) -- 13.71 33.89 171,281
11/30/96# 13.71 0.18 3.48 3.66 (0.12) (0.43) 16.82 27.41 325,463
<CAPTION>
Federated Value Portfolio
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/3/96-
11/30/96# 10.00 0.06 1.02 1.08 -- -- 11.08 10.80 12,460
<CAPTION>
Venture Value Portfolio
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/28/94-
11/30/94 10.00 0.03 (0.25) (0.22) -- -- 9.78 (2.20) 4,449
11/30/95 9.78 0.17 3.55 3.72 (0.03) -- 13.47 38.17 154,908
11/30/96# 13.47 0.18 3.46 3.64 (0.09) (0.12) 16.90 27.44 516,413
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Ratio of net
Ratio of investment
expenses to income to Average
Period average net average net Portfolio commission
ended assets assets turnover per share@
- --------------------------------------------------------------------------------
Balanced/Phoenix Investment Counsel Portfolio
<S> <C> <C> <C> <C>
10/28/94-
11/30/94 1.00%+ ++ 4.25%+ ++ 10% NA
11/30/95 0.98++ 3.08++ 153 NA
11/30/96# 0.84 2.74 194 .0589
Asset Allocation Portfolio
7/1/93-
11/30/93 0.99+ ++ 2.33+ ++ 71 NA
11/30/94 0.94++ 2.71++ 152 NA
11/30/95 0.81 3.62 207 NA
11/30/96# 0.74 3.66 200 .0587
Utility Portfolio
6/3/96-
11/30/96# 1.05+ ++ 4.41+ ++ 20 .0439
Growth-Income Portfolio
2/9/93-
11/30/93 0.82+ ++ 1.59+ ++ 27 NA
11/30/94 0.81++ 1.26++ 59 NA
11/30/95 0.77 1.42 59 NA
11/30/96# 0.72 1.21 82 .0597
Federated Value Portfolio
6/3/96-
11/30/96# 1.05+ ++ 1.26 + ++ 26 .0520
Venture Value Portfolio
10/28/94-
11/30/94 1.10+ ++ 3.93+ ++ -- NA
11/30/95 1.00++ 1.43++ 18 NA
11/30/96# 0.85 1.21 22 .0598
</TABLE>
- ----------
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of
Anchor National Life Insurance Company and First SunAmerica Life
Insurance Company. If such expenses had been included, total return
would have been lower for each period presented.
@ 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.
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995 and 1996, the
investment adviser waived a portion of or all fees and assumed a portion
of or all expenses for the Portfolios. If all fees and expenses had been
incurred by the Portfolios, the ratio of expenses to average net assets
and the ratio of net investment income to average net assets would have
been as follows:
<TABLE>
<CAPTION>
Expenses Net Investment Income (Loss)
-------------------------------- ----------------------------------
1993 1994 1995 1996# 1993 1994 1995 1996#
-------------------------------- ----------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balanced/Phoenix Investment Counsel Portfolio......... --% 6.82% 1.11% 0.84% --% (1.57)% 2.95% 2.74%
Asset Allocation Portfolio............................ 1.67 0.94 0.81 0.74 1.65 2.71 3.62 3.66
Utility Portfolio..................................... -- -- -- 1.93 -- -- -- 3.53
Growth-Income Portfolio............................... 1.40 0.89 0.77 0.72 1.01 1.18 1.42 1.21
Federated Value Portfolio............................. -- -- -- 1.57 -- -- -- 0.74
Venture Value Portfolio............................... -- 3.89 1.02 0.85 -- 1.14 1.41 1.21
</TABLE>
# Unaudited
<PAGE> 5
The following Financial Highlights for the Portfolios and periods set
forth below have been audited (except where noted) by Price Waterhouse LLP, the
Trust's independent accountants, whose report on the financial statements
containing such information is included in the Trust's Annual Report to
Shareholders. These Financial Highlights* should be read in conjunction with
the financial statements and notes thereto, which are included in the Statement
of Additional Information.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Net Total Dividends Dividends Net Net
Asset Net Net realized from declared from net Asset Assets
Value invest- & urealized invest- from net realized Value end of
Period beginning ment gain (loss) on ment investment gain on end of Total period
ended of period income** investments operations income investments period Return*** (000's)
- --------------------------------------------------------------------------------------------------------------------------
Alliance Growth Portfolio
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2/9/93-
11/30/93 $10.00 $ 0.05 $ 0.87 $ 0.92 $ -- $ -- $10.92 9.20% $ 23,256
11/30/94 10.92 0.04 (0.14) (0.10) (0.01) (0.17) 10.64 (0.93) 53,213
11/30/95 10.64 0.07 5.08 5.15 (0.03) (0.13) 15.63 48.91 167,870
11/30/96# 15.63 0.08 4.07 4.15 (0.04) (1.01) 18.73 28.05 381,367
<CAPTION>
Growth/Phoenix Investment Counsel Portfolio
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2/9/93-
11/30/93 10.00 0.17 0.61 0.78 -- -- 10.78 7.80 65,032
11/30/94 10.78 0.16 (0.87) (0.71) (0.06) -- 10.01 (6.64) 104,194
11/30/95 10.01 0.12 3.14 3.26 (0.13) -- 13.14 32.92 149,910
11/30/96# 13.14 0.11 2.16 2.27 (0.11) (0.91) 14.39 18.40 186,368
<CAPTION>
Provident Growth Portfolio
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2/9/93-
11/30/93 10.00 0.02 0.02 0.04 -- -- 10.04 0.40 42,911
11/30/94 10.04 0.03 (0.01) 0.02 (0.01) -- 10.05 0.19 75,342
11/30/95 10.05 (0.01) 3.09 3.08 (0.03) -- 13.10 30.66 115,276
11/30/96# 13.10 -- 2.61 2.61 -- -- 15.71 19.92 160,073
<CAPTION>
Global Equities Portfolio
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2/9/93-
11/30/93 10.00 0.03 0.96 0.99 -- -- 10.99 9.90 43,737
11/30/94 10.99 0.05 0.71 0.76 (0.01) (0.07) 11.67 6.78 136,758
11/30/95 11.67 0.12 1.64 1.76 (0.08) (0.29) 13.06 15.58 165,752
11/30/96# 13.06 0.14 2.19 2.33 (0.14) (0.33) 14.92 18.21 246,482
<CAPTION>
International Diversified Equities Portfolio
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/28/94-
11/30/94 10.99 0.01 (0.23) (0.22) -- -- 9.78 (2.20) 12,438
11/30/95 9.78 0.07 0.38 0.45 (0.08) -- 10.15 4.63 48,961
11/30/96# 10.15 0.05 1.43 1.48 (0.26) -- 11.37 14.85 157,008
<CAPTION>
Aggressive Growth Portfolio
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/3/96-
11/30/96# 10.00 0.02 0.34 0.36 -- -- 10.36 3.60 35,124
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Ratio of net
Ratio of investment
expenses to income to Average
Period average net average net Portfolio commission
ended assets assets turnover per share@
- --------------------------------------------------------------------------------
Alliance Growth Portfolio
<S> <C> <C> <C> <C>
2/9/93-
11/30/93 0.82%+ ++ 0.61% + ++ 73% NA
11/30/94 0.82+ ++ 0.37++ 146 NA
11/30/95 0.79 0.51 138 NA
11/30/96# 0.71 0.51 121 .0649
<CAPTION>
Growth/Phoenix Investment Counsel Portfolio
<S> <C> <C> <C> <C>
2/9/93-
11/30/93 0.82+ ++ 2.20+ ++ 165 NA
11/30/94 0.81++ 1.52++ 211 NA
11/30/95 0.76 1.01 229 NA
11/30/96# 0.74 0.82 164 .0534
<CAPTION>
Provident Growth Portfolio
<S> <C> <C> <C> <C>
2/9/93-
11/30/93 0.97+ ++ 0.32+ ++ 40 NA
11/30/94 0.96++ 0.31++ 54 NA
11/30/95 0.93 (0.05) 52 NA
11/30/96# 0.90 (0.02) 63 .0443
<CAPTION>
Global Equities Portfolio
<S> <C> <C> <C> <C>
2/9/93-
11/30/93 1.50+ ++ 0.38+ ++ 58 NA
11/30/94 1.28 0.42 67 NA
11/30/95 1.14 1.02 106 NA
11/30/96# 1.03 1.04 70 .0256
<CAPTION>
International Diversified Equities Portfolio
<S> <C> <C> <C> <C>
10/28/94-
11/30/94 1.70+ ++ 1.60+ ++ -- NA
11/30/95 1.70++ 0.76++ 52 NA
11/30/96# 1.59 0.47 53 .0023
<CAPTION>
Aggressive Growth Portfolio
<S> <C> <C> <C> <C>
6/3/96-
11/30/96# 1.05+ ++ 0.46+ ++ 40 .0600
</TABLE>
- ----------
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of
Anchor National Life Insurance Company and First SunAmerica Life
Insurance Company. If such expenses had been included, total return
would have been lower for each period presented.
@ 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.
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995 and 1996, the
investment adviser waived a portion of or all fees and assumed a portion
of or all expenses for the Portfolios. If all fees and expenses had been
incurred by the Portfolios, the ratio of expenses to average net assets
and the ratio of net investment income to average net assets would have
been as follows:
<TABLE>
<CAPTION>
Expenses Net Investment Income (Loss)
-------------------------------- ----------------------------------
1993 1994 1995 1996# 1993 1994 1995 1996#
-------------------------------- ----------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Alliance Growth Portfolio............................. 1.56% 0.96% 0.79% 0.71% (0.13)% 0.23% 0.51% 0.51%
Growth/Phoenix Investment Counsel Portfolio........... 1.28 0.87 0.76 0.74 1.74 1.46 1.01 0.82
Provident Growth Portfolio............................ 1.46 1.05 0.93 0.90 (0.17) 0.22 (0.05) (0.02)
Global Equities Portfolio............................. 2.52 1.28 1.14 1.03 (0.64) 0.42 1.02 1.04
International Diversified Equities Portfolio.......... -- 3.50 2.09 1.59 -- (0.20) 0.37 0.47
Aggressive Growth Portfolio........................... -- -- -- 1.09 -- -- -- 0.42
</TABLE>
# Unaudited
<PAGE> 6
Statement of Additional Information
SUNAMERICA SERIES TRUST
This Statement of Additional Information is not a prospectus, but should be
read in conjunction with the current Prospectus of SunAmerica Series Trust
("Trust"). Capitalized terms used herein but not defined have the meanings
assigned to them in the Prospectus. The Prospectus may be obtained by
writing to the Trust at the following address:
P.O. Box 54299
Los Angeles, California 90054-0299
December 30, 1996
<PAGE> 7
TABLE OF CONTENTS
<TABLE>
<CAPTION>
TOPIC PAGE
- ----- ----
<S> <C>
The Trust ................................................ B-2
Investment Objectives and Policies ....................... B-3
Description of Commercial Paper and Bond Ratings ......... B-26
Investment Restrictions .................................. B-30
Trust Officers and Trustees .............................. B-35
Investment Advisory and Management Agreement ............. B-37
Subadvisory Agreements ................................... B-40
Dividends, Distributions and Federal Taxes ............... B-43
Price of Shares .......................................... B-43
Execution of Portfolio Transactions ...................... B-44
General Information ...................................... B-49
Financial Statements ..................................... B-51
</TABLE>
THE TRUST
The Trust, organized as a Massachusetts business trust on September 11,
1992, is an open-end management investment company. Shares of the Trust are
issued and redeemed only in connection with investments in and payments under
variable annuity contracts, and may be sold to fund variable life contracts in
the future.
On August 30, 1994, the Board of Trustees of the Trust (the "Trustees")
approved the creation of the Balanced/Phoenix Investment Counsel Portfolio,
International Diversified Equities Portfolio, Worldwide High Income Portfolio
and Venture Value Portfolio. On March 1, 1996, the Trustees approved the
creation of the SunAmerica Balanced Portfolio, Aggressive Growth Portfolio,
Federated Value Portfolio and Utility Portfolio. In addition, on March 1, 1996,
the Trustees approved changing the name of the Fixed Income Portfolio to the
Corporate Bond Portfolio, and such name change became effective on June 3, 1996.
Prior to June 3, 1996, Goldman Sachs Asset Management, a separate operating
division of Goldman, Sachs & Co., served as subadviser for the Corporate Bond
Portfolio (formerly, the Fixed Income Portfolio).
Shares of the Trust are held by Variable Separate Account and FS Variable
Separate Account, separate accounts of, respectively, Anchor National Life
Insurance Company, an Arizona corporation, and First SunAmerica Life Insurance
Company, a New York corporation. Anchor National Life Insurance Company and
First SunAmerica Life Insurance Company are wholly owned subsidiaries of
SunAmerica Life Insurance Company, an Arizona corporation wholly owned by
SunAmerica Inc., a Maryland corporation.
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<PAGE> 8
INVESTMENT OBJECTIVES AND POLICIES
The discussion below is intended to supplement the information contained
in the Prospectus.
CASH MANAGEMENT PORTFOLIO. The Cash Management Portfolio seeks to achieve
its investment objective by investing in a diversified selection of money market
instruments. The money market instruments that the Portfolio may invest in are
as follows:
Commercial Bank Obligations. Certificates of deposit (interest-bearing
time deposits), bankers' acceptances (time drafts drawn on a commercial
bank where the bank accepts an irrevocable obligation to pay at maturity)
and documented discount notes (corporate promissory discount notes
accompanied by a commercial bank guarantee to pay at maturity)
representing direct or contingent obligations of commercial banks with
total assets in excess of $1 billion, based on the latest published
reports. The Cash Management Portfolio may also invest in obligations
issued by commercial banks with total assets of less than $1 billion if
the principal amount of these obligations owned by the Cash Management
Portfolio is fully insured by the Federal Deposit Insurance Corporation
("FDIC").
Savings Association Obligations. Certificates of deposit (interest-bearing
time deposits) issued by mutual savings banks or savings and loan
associations with assets in excess of $1 billion and whose deposits are
insured by the FDIC. The Cash Management Portfolio may also invest in
obligations issued by mutual savings banks or savings and loan
associations with total assets of less than $1 billion if the principal
amount of these obligations owned by the Cash Management Portfolio is
fully insured by the FDIC.
Commercial Paper. Short-term notes (up to 9 months) issued by corporations
or governmental bodies. The Cash Management Portfolio may only purchase
commercial paper judged by SunAmerica Asset Management Corp. ("SAAMCo" or
the "Adviser") to be of suitable investment quality. This includes
commercial paper that is (a) rated in the two highest categories by
Standard & Poor's Ratings Services, a Division of The McGraw-Hill
Companies, Inc. ("Standard & Poor's") and by Moody's Investors Service,
Inc. ("Moody's"), or (b) other commercial paper deemed on the basis of the
issuer's creditworthiness to be of a quality appropriate for the Cash
Management Portfolio. (No more than 5% of the Cash Management Portfolio's
assets may be invested in commercial paper in the second
B-3
<PAGE> 9
highest rating category; no more than the greater of 1% or $1 million may
be invested in such securities of any one issuer.) See "Description of
Commercial Paper and Bond Ratings" for a description of the ratings. The
Cash Management Portfolio will not purchase commercial paper described in
(b) above if such paper would in the aggregate exceed 15% of its total
assets after such purchase. The commercial paper in which the Cash
Management Portfolio may invest includes variable amount master demand
notes. Variable amount master demand notes permit the Cash Management
Portfolio to invest varying amounts at fluctuating rates of interest
pursuant to the agreement in the master note. These are direct lending
obligations between the lender and borrower, they are generally not
traded, and there is no secondary market. Such instruments are payable
with accrued interest in whole or in part on demand. The amounts of the
instruments are subject to daily fluctuations as the participants increase
or decrease the extent of their participation. Investments in these
instruments are limited to those that have a demand feature enabling the
Cash Management Portfolio unconditionally to receive the amount invested
from the issuer upon seven or fewer days' notice. Generally, the Cash
Management Portfolio attempts to invest in instruments having a one-day
notice provision. In connection with master demand note arrangements, the
Adviser, subject to the direction of the trustees, monitors on an ongoing
basis, the earning power, cash flow and other liquidity ratios of the
borrower, and its ability to pay principal and interest on demand. The
Adviser also considers the extent to which the variable amount master
demand notes are backed by bank letters of credit. These notes generally
are not rated by Moody's or Standard & Poor's and the Cash Management
Portfolio may invest in them only if it is determined that at the time of
investment the notes are of comparable quality to the other commercial
paper in which the Portfolio may invest. Master demand notes are
considered to have a maturity equal to the repayment notice period unless
the Adviser has reason to believe that the borrower could not make timely
repayment upon demand.
Corporate Bonds and Notes. The Cash Management Portfolio may purchase
corporate obligations that mature or that may be redeemed in one year or
less. These obligations originally may have been issued with maturities in
excess of one year. The Cash Management Portfolio may invest only in
corporate bonds or notes of issuers having outstanding short-term
securities rated in the top two rating categories by Standard & Poor's and
Moody's. See "Description of Commercial Paper and Bond Ratings" for
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<PAGE> 10
description of investment-grade ratings by Standard & Poor's and Moody's.
WORLDWIDE HIGH INCOME PORTFOLIO. The following is additional
disclosure relating to the Portfolio's investments:
Loan Participations and Assignments. The Worldwide High Income Portfolio
may invest in fixed and floating rate loans ("Loans") arranged through
private negotiations between an issuer of sovereign or corporate debt
obligations and one or more financial institutions ("Lenders"). The
Portfolio's investments in Loans are expected in most instances to be in
the form of participations in Loans ("Participations") and assignments of
all or a portion of Loans ("Assignments") from third parties. In the case
of Participations, the Portfolio will have the right to receive payments
of principal, interest and any fees to which it is entitled only from the
Lender selling the Participation and only upon receipt by the Lender of
the payments from the borrower. In the event of the insolvency of the
Lender selling a Participation, the Portfolio may be treated as a general
creditor of the Lender and may not benefit from any set-off between the
Lender and the borrower. The Portfolio will acquire Participations only if
the Lender interpositioned between the Portfolio and the borrower is
determined by the Subadviser to be creditworthy. When the Portfolio
purchases Assignments from Lenders it will acquire direct rights against
the borrower on the Loan. Because Assignments are arranged through private
negotiations between potential assignees and potential assignors, however,
the rights and obligations acquired by the Portfolio as the purchaser of
an Assignment may differ from, and be more limited than, those held by the
assigning Lender. Because there is no liquid market for such securities,
the Portfolio anticipates that such securities could be sold only to a
limited number of institutional investors. The lack of a liquid secondary
market may have an adverse impact on the value of such securities and the
Portfolio's ability to dispose of particular Assignments or Participations
when necessary to meet the Portfolio's liquidity needs or in response to a
specific economic event such as a deterioration in the creditworthiness of
the borrower. The lack of a liquid secondary market for Assignments and
Participations also may make it more difficult for the Portfolio to assign
a value to these securities for purposes of valuing the Portfolio and
calculating its net asset value.
Structured Investments. The Worldwide High Income Portfolio may invest a
portion of its assets in entities organized and operated solely for the
purpose of
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<PAGE> 11
restructuring the investment characteristics of sovereign debt
obligations. This type of restructuring involves the deposit with or
purchase by an entity, such as a corporation or trust, of specified
instruments (such as commercial bank loans) and the issuance by that
entity of one or more classes of securities ("Structured Securities")
backed by, or representing interests in, the underlying instruments. The
cash flow on the underlying instruments may be apportioned among the newly
issued Structured Securities to create securities with different
investment characteristics, such as varying maturities, payment priorities
and interest rate provisions, and the extent of the payments made with
respect to Structured Securities is dependent on the extent of the cash
flow on the underlying instruments. Because Structured Securities of the
type in which the Portfolio anticipates it will invest typically involve
no credit enhancement, their credit risk generally will be equivalent to
that of the underlying instruments. The Portfolio is permitted to invest
in a class of Structured Securities that is either subordinated or
unsubordinated to the right of payment of another class. Subordinated
Structured Securities typically have higher yields and present greater
risks than unsubordinated Structured Securities. Structured Securities are
typically sold in private placement transactions, and there currently is
no active trading market for Structured Securities.
The Portfolio's investments in government and government-related and
restructured debt instruments are subject to special risks, including the
inability or unwillingness to repay principal and interest, requests to
reschedule or restructure outstanding debt and requests to extend
additional loan amounts.
U.S. Corporate High-Yield Fixed-Income Securities. A portion of the
Worldwide High Income Portfolio's assets will be invested in U.S.
corporate high-yield fixed-income securities, which offer a yield above
that generally available on U.S. corporate debt securities in the four
highest rating categories of the recognized rating services. The Portfolio
may acquire fixed-income securities of U.S. issuers, including debt
obligations (e.g., bonds, debentures, notes, equipment lease certificates,
equipment trust certificates, conditional sales contracts, commercial
paper and obligations issued or guaranteed by the U.S. government or any
of its political subdivisions, agencies or instrumentalities) and
preferred stock. These fixed-income securities may have equity features,
such as conversion
B-6
<PAGE> 12
rights or warrants, and the Portfolio may invest up to 10% of its total
assets in equity features, such as conversion rights or warrants, and the
Portfolio may invest up to 10% of its total assets in equity securities
other than preferred stock (e.g., common stock, warrants and rights and
limited partnership interests). The Portfolio may not invest more than 5%
of its total assets at the time of acquisition in either of (1) equipment
lease certificates, equipment trust certificates, equipment trust
certificates and conditional sales contracts or (2) limited partnership
interests.
Emerging Country Fixed-Income Securities. A portion of the Worldwide High
Income Portfolio's assets will be invested in emerging country
fixed-income securities, which are debt securities of government and
government-related issuers located in emerging countries (including
participations in loans between governments and financial institutions),
and of entities organized to restructure outstanding debt of such issuers
and debt securities of corporate issuers located in or organized under the
laws of emerging countries. As used with respect to this Portfolio, an
emerging country is any country that the International Bank for
Reconstruction and Development (more commonly known as the World Bank) has
determined to have a low or middle income economy. There are currently
over 130 countries which are considered to be emerging countries,
approximately 40 of which currently have established securities markets.
The countries generally include every nation in the world except the
United States, Canada, Japan, Australia, New Zealand and most nations
located in Western Europe.
In selecting emerging country debt securities for investment by the
Portfolio, the Subadviser will apply a market risk analysis contemplating
assessment of factors such as liquidity, volatility, tax implications,
interest rate sensitivity, counterparty risks and technical market
considerations. Currently, investing in many emerging country securities
is not feasible or may involve unacceptable political risks. The Portfolio
expects that its investments in emerging country debt securities will be
made primarily in some or all of the following emerging countries:
<TABLE>
<S> <C> <C> <C>
Argentina Indonesia Poland
Brazil Malaysia Portugal
Chile Mexico South Africa
Czech Republic Morocco Thailand
Egypt Pakistan Turkey
Greece Peru Uruguay
Hungary Philippines Venezuela
</TABLE>
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<PAGE> 13
As opportunities to invest in debt securities in other emerging countries
develop, the Portfolio expects to expand and further diversify the
emerging countries in which it invests. While the Portfolio generally is
not restricted in the portion of its assets which may be invested in a
single country or region, it is anticipated that, under normal
circumstances, the Portfolio's assets will be invested in at least three
countries.
The Portfolio's investments in government and government-related and
restructured debt securities will consist of (i) debt securities or
obligations issued or guaranteed by governments, governmental agencies or
instrumentalities and political subdivisions located in emerging countries
(including participation in loans between governments and financial
institutions), (ii) debt securities or obligations issued by government
owned, controlled or sponsored entities located in emerging countries, and
(iii) interests in issuers organized and operated for the purpose of
restructuring the investment characteristics of instruments issued by any
of the entities described above. Such type of restructuring involves the
deposit with or purchase by an entity of specific instruments and the
issuance by that entity of one or more classes of securities backed by, or
representing an interest in, the underlying instruments. Certain issuers
of such structured securities may be deemed to be "investment companies"
as defined in the Investment Company Act of 1940, as amended, (the "1940
Act"). As a result, the Portfolio's investment in such securities may be
limited by certain investment restrictions contained in the 1940 Act.
The Portfolio's investments in debt securities of corporate issuers
in emerging countries may include debt securities or obligations issued
(i) by banks located in emerging countries or by branches of emerging
country banks located outside the country or (ii) by companies organized
under the laws of an emerging country. Determinations as to eligibility
will be made by the Subadviser based on publicly available information and
inquiries made to the issuer. The Portfolio may also invest in certain
debt obligations customarily referred to as "Brady Bonds," which are
created through the exchange of existing commercial bank loans to foreign
entities for new obligations in connection with debt restructuring under a
plan introduced by former U.S. Secretary of the Treasury Nicholas F.
Brady.
Emerging country debt securities held by the Portfolio will take the
form of bonds, notes, bills, debentures, convertible securities, warrants,
bank debt
B-8
<PAGE> 14
obligations, short-term paper, mortgage-backed and other asset-backed
securities, loan participations, loan assignments and interests issued by
entities organized and operated for the purpose of restructuring the
investment characteristics of instruments issued by emerging country
issuers. U.S. dollar-denominated emerging country debt securities held by
the Portfolio will generally be listed but not traded on a securities
exchange, and non-U.S. dollar-denominated securities held by the Portfolio
may or may not be listed or traded on a securities exchange. The Portfolio
may invest in mortgage-backed securities and in other asset-backed
securities issued by non-governmental entities such as banks and other
financial institutions. Mortgage-backed securities include mortgage
pass-through securities and collateralized mortgage obligations.
Asset-backed securities are collateralized by such assets as automobile or
credit card receivables and are securitized either in a pass-through
structure or in a pay-through structure similar to a collaterized mortgage
obligation.
Investments in emerging country debt securities entail special
investment risks. Many of the emerging countries listed above may have
less stable political environments than more developed countries. Also, it
may be more difficult to obtain a judgement in a court outside the United
States.
Global Fixed-Income Securities. The global fixed-income securities in
which a portion of the Worldwide High Income Portfolio's assets may be
invested are debt securities denominated in currencies of countries
displaying high real yields. Such securities include government
obligations issued or guaranteed by U.S. or foreign governments and their
political subdivisions, authorities, agencies or instrumentalities, and by
supranational entities (such as the World Bank, The European Economic
Community, The Asian Development Bank and the European Coal and Steel
Community), Eurobonds, and corporate bonds with varying maturities
denominated in various currencies. In this portion of the Portfolio, the
Subadviser seeks to minimize investment risk by investing in a high
quality portfolio of debt securities, the majority of which will be rated
in one of the two highest rating categories by a nationally recognized
statistical rating organization. U.S. government securities in which the
Portfolio may invest include obligations issued or guaranteed by the U.S.
government, such as U.S. Treasury securities, as well as those backed by
the full faith and credit of the United States, such as obligations of the
Government National Mortgage Association and The Export-Import Bank. The
Portfolio
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<PAGE> 15
may also invest in obligations issued or guaranteed by U.S. government
agencies or instrumentalities where the Portfolio must look principally to
the issuing or guaranteeing agency for ultimate repayment. The Portfolio
may invest in obligations issued or guaranteed by foreign governments and
their political subdivisions, authorities, agencies or instrumentalities,
and by supranational entities (such as the World Bank, The European
Economic Community, The Asian Development Bank and the European Coal and
Steel Community). Investment in foreign government securities for this
portion of the Portfolio will be limited to those of developed nations
which the Subadviser believes to pose limited credit risk. These countries
currently include Australia, Austria, Belgium, Canada, Denmark, Finland,
France, Germany, Ireland, Italy, Japan, Luxembourg, the Netherlands, New
Zealand, Norway, Portugal, Spain, Sweden, Switzerland and the United
Kingdom. Corporate and supranational obligations selected for this portion
of the portfolio will be limited to those rated A or better by Moody's,
Standard and Poor's or IBCA Ltd.
In selecting securities for this portion of the Portfolio, the
Subadviser evaluates the currency, market and individual features of the
securities being considered for investment. The Subadviser believes that
countries displaying the highest real yields will over time generate a
high total return, and accordingly, the Subadviser's focus for this
portion of the Portfolio will be to analyze the relative rates of real
yield of twenty global fixed-income markets. In selecting securities, the
Subadviser will first identify the global markets in which the Portfolio's
assets will be invested by ranking such countries in order of highest real
yield. In this portion of its portfolio, the Portfolio will invest its
assets primarily in fixed-income securities denominated in the currencies
of countries within the top quartile of the Subadviser's ranking.
The Subadviser's assessment of the global fixed-income markets is
based on an analysis of real interest rates. The Subadviser calculates
real yield for each global market by adjusting current nominal yields of
securities in each such market for inflation prevailing in each country
using an analysis of past and projected (one-year) inflation rates for
that country. The Subadviser expects to review and update on a regular
basis its real yield ranking of countries and market sectors and to alter
the allocation of this portion of the Portfolio's investments among
markets as necessary when changes to real yields and inflation estimates
B-10
<PAGE> 16
significantly alter the relative rankings of the countries and market
sectors.
SHORT SALES. Each Portfolio may make "short sales against the box." A short sale
is effected by selling a security which the Portfolio does not own. A short sale
is against the box to the extent that the Portfolio contemporaneously owns, or
has the right to obtain without payment, securities identical to those sold
short. A Portfolio may not enter into a short sale against the box, if, as a
result, more than 25% of its total assets would be subject to such short sales.
The Worldwide High Income and Aggressive Growth Portfolios may also from
time to time sell securities short that it does not contemporaneously own, or
have the right to acquire without additional cost. When the Portfolio makes a
short sale, the proceeds it receives from the sale will be held on behalf of a
broker until the Portfolio replaces the borrowed securities. To deliver the
securities to the buyer, the Portfolio will need to arrange through a broker to
borrow the securities and, in so doing, the Portfolio will become obligated to
replace the securities borrowed at their market price at the time of
replacement, whatever that price may be. The Portfolio may have to pay a premium
to borrow the securities and must pay any dividends or interest payable on the
securities until they are replaced.
The Portfolio's obligation to replace the securities borrowed in
connection with a short sale will be secured by collateral deposited with the
Trust's Custodian in the name of the broker that consists of cash, U.S.
government securities or other liquid, high grade debt obligations. In addition,
the Portfolio will place in a segregated account with its Custodian an amount of
cash, U.S. government securities or other liquid, high grade debt obligations
equal to the difference, if any, between (1) the market value of the securities
sold at the time they were sold short and (2) any cash, U.S. government
securities or other liquid, high grade debt obligations deposited as collateral
with the broker in connection with the short sale (not including the proceeds of
the short sale). In the event that the value of the collateral deposited with
the broker, plus the value of the assets in the segregated account should fall
below the value of the securities sold short, additional amounts to cover the
difference will be placed in the segregated accounts. Short sales by the
Portfolio involve certain risks and special considerations. Possible losses from
short sales differ from losses that could be incurred from a purchase of a
security, because losses from short sales may be unlimited, whereas losses from
purchases can equal only the total amount invested.
ILLIQUID SECURITIES. Each of the Portfolios may invest no more than 15%
(10% in the case of the Cash Management Portfolio) of its net assets, determined
as of the date of purchase, in illiquid securities including repurchase
agreements which have a maturity of longer than seven days or in other
securities that are illiquid by virtue of the absence of a readily available
market or legal or contractual restrictions on resale. Historically, illiquid
securities have included securities subject to contractual or legal restrictions
on resale because they have not been registered under the Securities Act of
1933, as amended (the "Securities Act"), securities which are otherwise not
readily marketable and repurchase agreements having a maturity of
B-11
<PAGE> 17
longer than seven days. Repurchase agreements subject to demand are deemed to
have a maturity equal to the notice period. Securities which have not been
registered under the Securities Act are referred to as private placements or
restricted securities and are purchased directly from the issuer or in the
secondary market. Mutual funds do not typically hold a significant amount of
these restricted or other illiquid securities because of the potential for
delays on resale and uncertainty in valuation. Limitations on resale may have an
adverse effect on the marketability of portfolio securities and a mutual fund
might be unable to dispose of restricted or other illiquid securities promptly
or at reasonable prices and might thereby experience difficulty satisfying
redemptions within seven days. A mutual fund might also have to register such
restricted securities in order to dispose of them, resulting in additional
expense and delay. There generally will be a lapse of time between a mutual
fund's decision to sell an unregistered security and the registration of such
security promoting sale. Adverse market conditions could impede a public
offering of such securities. When purchasing unregistered securities, the
Portfolios will seek to obtain the right of registration at the expense of the
issuer.
In recent years, a large institutional market has developed for certain
securities that are not registered under the Securities Act, including
repurchase agreements, commercial paper, foreign securities, municipal
securities and corporate bonds and notes. Institutional investors depend on an
efficient institutional market in which the unregistered security can be readily
resold or on an issuer's ability to honor a demand for repayment. The fact that
there are contractual or legal restrictions on resale to the general public or
to certain institutions may not be indicative of the liquidity of such
investments.
Restricted securities eligible for resale pursuant to Rule 144A under the
Securities Act for which there is a readily available market will not be deemed
to be illiquid. The Adviser or subadviser, as the case may be, will monitor the
liquidity of such restricted securities subject to the supervision of the Board
of Trustees of the Trust. In reaching liquidity decisions, the Adviser, or
subadviser, as the case may be, will consider, inter alia, pursuant to
guidelines and procedures established by the Trustees, the following factors:
(1) the frequency of trades and quotes for the security; (2) the number of
dealers wishing to purchase or sell the security and the number of other
potential purchasers; (3) dealer undertakings to make a market in the
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<PAGE> 18
security; and (4) the nature of the security and the nature of the marketplace
trades (e.g., the time needed to dispose of the security, the method of
soliciting offers and the mechanics of the transfer).
The Cash Management Portfolio may invest in commercial paper issues which
include securities issued by major corporations without registration under the
Securities Act in reliance on the exemption from such registration afforded by
Section 3(a)(3) thereof, and commercial paper issued in reliance on the
so-called private placement exemption from registration which is afforded by
Section 4(2) of the Securities Act ("Section 4(2) paper"). Section 4(2) paper is
restricted as to disposition under the federal securities laws in that any
resale must similarly be made in an exempt transaction. Section 4(2) paper is
normally resold to other institutional investors through or with the assistance
of investment dealers who make a market in Section 4(2) paper, thus providing
liquidity. Section 4(2) paper that is issued by a company that files reports
under the Securities Exchange Act of 1934 is generally eligible to be sold in
reliance on the safe harbor of Rule 144A described above. The Cash Management
Portfolio's 10% limitation on investments in illiquid securities includes
Section 4(2) paper other than Section 4(2) paper that the Adviser has determined
to be liquid pursuant to guidelines established by the Trustees. The Portfolio's
Board of Trustees delegated to the Adviser the function of making day-to-day
determinations of liquidity with respect to Section 4(2) paper, pursuant to
guidelines approved by the Trustees that require the Adviser to take into
account the same factors described above for other restricted securities and
require the Adviser to perform the same monitoring and reporting functions.
REVERSE REPURCHASE AGREEMENTS. The Cash Management, Corporate Bond,
High-Yield Bond, Worldwide High Income, SunAmerica Balanced, Aggressive Growth,
Federated Value and Utility Portfolios may enter into reverse repurchase
agreements with brokers, dealers, domestic and foreign banks or other financial
institutions that have been determined by the Adviser or Subadviser to be
creditworthy. In a reverse repurchase agreement, the Portfolio sells a security
and agrees to repurchase it at a mutually agreed upon date and price, reflecting
the interest rate effective for the term of the agreement. It may also be viewed
as the borrowing of money by the Portfolio. The Portfolio's investment of the
proceeds of a reverse repurchase agreement is the speculative factor known as
leverage. The Portfolios will enter into a reverse repurchase agreement only if
the interest income from investment of the proceeds is expected to be greater
than the interest expense of the transaction and the proceeds are invested for a
period no longer than the term of the agreement. The Portfolio will maintain
with the Custodian a separate account with a segregated portfolio of cash, U.S.
government securities or other liquid high grade debt obligations in an amount
at least equal to its purchase obligations under these
B-13
<PAGE> 19
agreements (including accrued interest). In the event that the buyer of
securities under a reverse repurchase agreement files for bankruptcy or becomes
insolvent, the buyer or its trustee or receiver may receive an extension of time
to determine whether to enforce the Portfolio's repurchase obligation, and the
Portfolio's use of proceeds of the agreement may effectively be restricted
pending such decision. Reverse repurchase agreements are considered to be
borrowings and are subject to the percentage limitations on borrowings. See
"Investment Restrictions."
FLOATING RATE OBLIGATIONS. These securities have a coupon rate that
changes at least annually and generally more frequently. The coupon rate is set
in relation to money market rates. The obligations, issued primarily by banks,
other corporations, governments and semi-governmental bodies, may have a
maturity in excess of one year. In some cases, the coupon rate may vary with
changes in the yield on Treasury bills or notes or with changes in LIBOR (London
Interbank Offering Rate). The Adviser considers floating rate obligations to be
liquid investments because a number of United States and foreign securities
dealers make active markets in these securities.
COVERED OPTIONS. Each Portfolio may write (sell) covered call and put
options on any securities in which it may invest. A Portfolio may purchase and
write such options on securities that are listed on national domestic securities
exchanges (and, for certain Portfolios, foreign securities exchanges) or traded
in the over-the-counter market. A call option written by a Portfolio obligates a
Portfolio to sell specified securities to the holder of the option at a
specified price if the option is exercised at any time before the expiration
date. All call options written by a Portfolio are covered, which means that a
Portfolio will own the securities subject to the option so long as the option is
outstanding. The purpose of writing covered call options is to realize greater
income than would be realized on portfolio securities transactions alone.
However, in writing covered call options for additional income, a Portfolio may
forego the opportunity to profit from an increase in the market price of the
underlying security.
A put option written by a Portfolio would obligate a Portfolio to purchase
specified securities from the option holder at a specified price if the option
is exercised at any time before the expiration date. All put options written by
a Portfolio would be covered, which means that the Portfolio would have
deposited with its custodian cash, U.S. government securities or other
high-grade debt securities (i.e., securities rated in one of the top three
categories by Moody's or Standard & Poor's, or, if unrated, deemed by the
Adviser or subadviser to be of comparable credit quality) with a value at least
equal to the exercise price of the put option. The purpose of writing such
options is to generate additional income for a Portfolio. However, in return for
the
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<PAGE> 20
option premium, a Portfolio accepts the risk that it may be required to purchase
the underlying securities at a price in excess of the securities' market value
at the time of purchase.
PORTFOLIO STRATEGIES RELATED TO FOREIGN SECURITIES. Each Portfolio may
engage in various portfolio strategies to reduce certain risks of their
respective investments and/or to attempt to enhance return. Each Portfolio may
engage in strategies including the purchase and sale of forward foreign currency
exchange contracts, currency and financial index futures contracts (including,
in the case of the Global Equities Portfolio, stock index futures) and options
thereon, put and call options on currencies and financial indices, and
combinations thereof. The Adviser or Subadviser will use such techniques as
market conditions warrant. Each Portfolio's ability to use these strategies may
be limited by market conditions, regulatory limits and tax considerations and
there can be no assurance that any of these strategies will succeed. New
financial products and risk management techniques continue to be developed and
these Portfolios may use these new investments and techniques to the extent
consistent with their investment objective and policies.
In addition to direct investment, the Portfolios which may invest in
foreign securities may also invest in American Depositary Receipts ("ADRs") and
in other Depositary Receipts, including Global Depositary Receipts ("GDRs"),
European Depositary Receipts ("EDRs") and others (which, together with ADRs,
GDRs and EDRs, are hereinafter collectively referred to as "Depositary
Receipts"), to the extent that such Depositary Receipts become available. ADRs
are securities, typically issued by a U.S. financial institution (a
"depositary"), that evidence ownership interests in a security or a pool of
securities issued by a foreign issuer (the "underlying issuer") and deposited
with the depositary. ADRs include American Depositary Shares and New York Shares
and may be "sponsored" or "unsponsored." Sponsored ADRs are established jointly
by a depositary and the underlying issuer, whereas unsponsored ADRs may be
established by a depositary without participation by the underlying issuer.
GDRs, EDRs and other types of Depositary Receipts are typically issued by
foreign depositaries, although they may also be issued by U.S. depositaries, and
evidence ownership interests in a security or pool of securities issued by
either a foreign or a U.S. corporation. Holders of unsponsored Depositary
Receipts generally bear all the costs associated with establishing the
unsponsored Depositary Receipt. The depositary of unsponsored Depositary
Receipts is under no obligation to distribute shareholder communications
received from the underlying issuer or to pass through to the holders of the
unsponsored Depositary Receipt voting rights with respect to the deposited
securities or pool of securities. Depositary Receipts are not necessarily
denominated in the same currency as the underlying securities to which they may
be connected. Generally, Depositary Receipts in registered form are designed for
use in the U.S.
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securities market and Depositary Receipts in bearer form are designed for use in
securities markets outside the United States. A Portfolio may invest in
sponsored and unsponsored Depositary Receipts. For purposes of a Portfolio's
investment policies, the Portfolio's investments in Depositary Receipts will be
deemed to be investments in the underlying securities. The Portfolios also may
invest in securities denominated in European Currency Units ("ECUs"). Generally
ADRs, in registered form, are dollar denominated securities designed for use in
the U.S. securities markets, which represent and may be converted into the
underlying foreign security. EDRs, in bearer form, are designed for use in the
European securities markets. An "ECU" is a "basket" consisting of specified
amounts of currencies of certain of the twelve member states of the European
Community. The specific amount of currencies comprising the ECU may be adjusted
by the Council of Ministers of the European Community from time to time to
reflect changes in relative values of the underlying currencies. In addition,
the Portfolios may invest in securities denominated in other currency "baskets."
See "Description of Securities and Investment Techniques - Risks and
Considerations Applicable to Investment in Securities of Foreign Issuers" in the
Prospectus.
The International Diversified Equities Portfolio will also invest in
emerging country equity securities. As used with respect to this Portfolio, the
term "emerging country" applies to any country which, in the opinion of the
Subadviser, is generally considered to be an emerging or developing country by
the international financial community, including the International Bank for
Reconstruction and Development (more commonly known as the World Bank) and the
International Finance Corporation. There are currently over 130 countries which,
in the opinion of the Subadviser, are generally considered to be emerging or
developing countries by the international financial community, approximately 40
of which currently have stock markets. These countries generally include every
nation in the world except the United States, Canada, Japan, Australia, New
Zealand and most nations located in Western Europe. Currently, investing in many
emerging countries is not feasible or may invoke unacceptable political risks.
The Portfolio will focus its investments on those emerging market countries in
which it believes the economies are developing strongly and in which the markets
are becoming more sophisticated. With respect to the portions of the Portfolio
that is invest in emerging country equity securities, the Portfolio initially
intends to invest primarily in some or all of the following countries:
<TABLE>
<S> <C> <C> <C>
Argentina Indonesia Portugal Thailand
Brazil Mexico South Africa Turkey
India Philippines South Korea
</TABLE>
As markets in other countries develop, the Portfolio expects to expand and
further diversify the emerging countries in which it invests. The Portfolio does
not intend to invest in any security
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in a country where the currency is not freely convertible to U.S. dollars,
unless the Portfolio has obtained the necessary governmental licensing to
convert such currency or other appropriately licensed or sanctioned contractual
guarantee to protect such investment against loss of that currency's external
value, or the Portfolio has a reasonable expectation at the time the investment
is made that such governmental licensing or other appropriately licensed or
sanctioned guarantee would be obtained or that the currency in which the
security is quoted would be freely convertible at the time of any proposed sale
of the security by the Portfolio.
An emerging country security is one issued by a company that, in the
opinion of the Subadviser, has one or more of the following characteristics: (i)
its principal securities trading market is in an emerging country; (ii) alone or
on a consolidated basis it derives 50% or more of its annual revenue from either
goods produced, sales made or services performed in emerging countries; or (iii)
it is organized under the laws of, and has a principal office in, an emerging
country. The Subadviser will base determinations as to eligibility on publicly
available information and inquiries made to the companies.
FOREIGN CURRENCY AND FINANCIAL INDEX TRANSACTIONS - FORWARD EXCHANGE AND
FUTURES CONTRACTS, OPTIONS AND OPTIONS ON FUTURES CONTRACTS. Each Portfolio may
enter into contracts for the purchase or sale for future delivery of foreign
currencies ("forward currency exchange contracts"), financial and foreign
currency futures contracts or contracts based on financial indices ("futures
contracts") and may purchase and write put and call options to buy or sell
currencies and to buy or sell futures contracts ("options on futures
contracts").
A forward foreign currency contract is an obligation to purchase or sell a
currency against another currency at a future date and price as agreed upon by
the parties. A "sale" of a foreign currency futures contract means entering into
a contract to deliver the foreign currencies called for by the contract at a
specified price on a specified date. A "purchase" of a foreign currency futures
contract means entering into a contract to acquire the foreign currencies called
for by the contract at a specified price on a specified date.
An exchange-traded futures contract relating to foreign currency, or a
financial index, is similar to a forward foreign currency exchange contract but
has a standardized size and exchange date. A Portfolio may either accept or make
delivery of the currency at the maturity of such a contract or, prior to
maturity, enter into a closing transaction involving the purchase or sale of an
offsetting contract. The purchaser of a futures contract on an index agrees to
take or make delivery of an amount of cash equal to the difference between a
specified dollar multiple of the value of
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the index on the expiration date of the contract and the price at which the
contract was originally struck. No physical delivery of the securities
underlying the index is made.
Over-the-counter currency instruments are subject to the risk that the
counterparty to such instruments will default on its obligations. Since
over-the-counter currency instruments are not guaranteed by an exchange or
clearinghouse, a default on the instrument would deprive the Portfolio of
unrealized profits, transaction costs or the benefits of a currency hedge or
force the Portfolio to cover its purchase or sale commitments, if any, at the
current market price. A Portfolio will not enter into such transactions unless
the credit quality of the unsecured senior debt or the claims-paying ability of
the counterparty is considered to be investment grade by the Adviser or
Subadviser.
Each Portfolio may enter into futures contracts in anticipation of, or to
protect against, fluctuations in currency exchange rates. A Portfolio might, for
example, enter into a futures contract when it wanted to hold securities
denominated in a particular currency but anticipated, and wished to be protected
against, a decline in that currency against the U.S. dollar. Similarly, it might
enter into futures contracts to "lock in" the U.S. dollar price of non-U.S.
dollar denominated securities that it anticipated purchasing. Although futures
contracts typically will involve the purchase and sale of a foreign currency
against the U.S. dollar, a Portfolio also may enter into currency contracts not
involving the U.S. dollar.
In connection with these futures transactions, the Trust has filed a
notice of eligibility with the Commodity Futures Trading Commission ("CFTC")
that exempts the Trust from CFTC registration as a "commodity pool operator" as
defined under the Commodity Exchange Act. Pursuant to this notice, each
Portfolio will observe certain CFTC guidelines with respect to its futures
transactions that, among other things, require the Portfolio to use futures for
bona fide "hedging" purposes only (as defined by CFTC rules), and, in the case
of futures transactions for non-bona fide hedging purposes, to limit initial
margin deposits to no more than 5% of its net assets after taking into account
unrealized profits and unrealized losses on any such contracts entered into. As
evidence of this hedging intent, each of the Global Bond, High-Yield Bond,
Worldwide High Income, Asset Allocation, Venture Value, Global Equities and
International Diversified Equities Portfolios expect that on 75% or more of the
occasions on which it takes a long futures or option position (involving the
purchase of futures contracts), the Portfolio will have purchased, or will be in
the process of purchasing, equivalent amounts of related securities in the cash
market at the time when the futures or option position is closed out. However,
in particular cases, when it is economically advantageous for a Portfolio to do
so, a long futures position may be terminated or an option may expire without
the corresponding
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<PAGE> 24
purchase of securities or other assets. In addition, subject to the limitation
on margin deposits described above, a Portfolio may engage in futures
transactions for non-bona fide hedging purposes, provided that the total value
of such long futures positions will not exceed the sum of (a) cash or cash
equivalents set aside in an identifiable manner for this purpose, (b) cash
proceeds on existing investments due within 30 days, and (c) accrued profits on
such futures or options positions.
Parties to futures contracts and holders and writers of options on futures
can enter into offsetting closing transactions, similar to closing transactions
on options, by selling or purchasing, respectively, an instrument identical to
the instrument held or written. Positions in futures and options on futures may
be closed only on an exchange or board of trade where there appears to be a
liquid secondary market. However, there can be no assurance that such a market
will exist for a particular contract at a particular time. Secondary markets for
options on futures are currently in the development stage, and no Portfolio will
trade options on futures on any exchange or board of trade unless, in the
judgment of the Adviser or applicable Subadviser, the markets for such options
have developed sufficiently that the liquidity risks for such options are not
greater than the corresponding risks for futures.
Under certain circumstances, futures exchanges may establish daily limits
on the amount that the price of a future or related option can vary from the
previous day's settlement price; once that limit is reached, no trades may be
made that day at a price beyond the limit. Daily price limits do not limit
potential losses because prices could move to the daily limit for several
consecutive days with little or no trading, thereby preventing liquidation of
unfavorable positions.
If a Portfolio were unable to liquidate a futures or related options
position due to the absence of a liquid secondary market or the imposition of
price limits, it could incur substantial losses. The Portfolio would continue to
be subject to market risk with respect to its position. In addition, except in
the case of purchased options, the Portfolio would continue to be required to
make daily variation margin payments and might be required to maintain the
position being hedged by the future or option or to maintain cash or securities
in a segregated account.
Certain characteristics of the futures market might increase the risk that
movements in the prices of futures contracts or related options might not
correlate perfectly with movements in the prices of the investments being
hedged. For example, all participants in the futures and related options markets
are subject to daily variation margin calls and might be compelled to liquidate
futures or related option positions whose prices are moving unfavorably to avoid
being subject to further calls. These
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<PAGE> 25
liquidations could increase price volatility of the instruments and distort the
normal price relationship between the futures or options and the investments
being hedged. Also, because initial margin deposit requirements in the futures
markets are less onerous than margin requirements in the securities markets,
there might be increased participation by speculators in the futures markets.
This participation also might cause temporary price distortions. In addition,
activities of large traders in both the futures and securities markets involving
arbitrage, "program trading" and other investment strategies might result in
temporary price distortions.
In connection with the purchase of futures contracts, a Portfolio will
deposit and maintain in a segregated account with the Trust's custodian an
amount of cash, U.S. government securities or other liquid high grade debt
securities equal to its obligations under the futures contracts less any amounts
maintained in a margin account with the Trust's futures broker.
OPTIONS - Each Portfolio may attempt to accomplish objectives similar to
those involved in their use of futures contracts by purchasing or selling put or
call options on currencies, currency futures contracts, and financial index
futures (including, in the case of the Global Equities Portfolio, stock index
futures). A foreign currency put option gives the Portfolio as purchaser the
right (but not the obligation) to sell a specified amount of currency at the
exercise price until the expiration of the option. A call option gives the
Portfolio as purchaser the right (but not the obligation) to purchase a
specified amount of currency at the exercise price until its expiration. A
Portfolio might purchase a currency put option, for example, to protect itself
during the contract period against a decline in the U.S. dollar value of a
currency in which it holds or anticipates holding securities. If the currency's
value should decline against the U.S. dollar, the loss in currency value should
be offset, in whole or in part, by an increase in the value of the put. If the
value of the currency instead should rise against the U.S. dollar, any gain to
the Portfolio would be reduced by the premium it had paid for the put option. A
currency call option might be purchased, for example, in anticipation of, or to
protect against, a rise in the value against the U.S. dollar of a currency in
which a Portfolio anticipates purchasing securities.
Currency options may be either listed on an exchange or traded
over-the-counter ("OTC options"). Listed options are third-party contracts
(i.e., performance of the obligations of the purchaser and seller is guaranteed
by the exchange or clearing corporation), and have standardized strike prices
and expiration dates. OTC options are two-party contracts with negotiated strike
prices and expiration dates. OTC options differ from exchange-traded options in
that OTC options are transacted with dealers directly and not through a clearing
corporation (which guarantees performance). Consequently, there is a risk of
non-performance by the dealer.
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Since no exchange is involved, OTC options are valued on the basis of a quote
provided by the dealer. A Portfolio will not purchase an OTC option unless it is
believed that daily valuations for such options are readily obtainable. In the
case of OTC options, there can be no assurance that a liquid secondary market
will exist for any particular option at any specific time.
An option on a securities index is similar to an option on a security
except that, rather than the right to take or make delivery of a security at a
specified price, an option on an index gives the holder the right to receive,
upon exercise of the option, an amount of cash if the closing level of the
chosen index is greater than (in the case of a call) or less than (in the case
of a put) the exercise price of the option.
Options on futures contracts to be written or purchased by a Portfolio
will be traded on U.S. or foreign exchanges or over-the-counter. These
investment techniques will be used only to hedge against anticipated future
changes in market conditions or exchange rates which otherwise might either
adversely affect the value of a Portfolio's securities or adversely affect the
prices of securities which a Portfolio intends to purchase at a later date.
CERTAIN RISK FACTORS RELATING TO HIGH-YIELD BONDS. The Corporate Bond,
High-Yield Bond, Worldwide High Income, Balanced/Phoenix Investment Counsel and
Asset Allocation Portfolios may invest in high-yield bonds. These bonds present
certain risks which are discussed below:
Sensitivity to Interest Rate and Economic Changes - High-yield bonds are
very sensitive to adverse economic changes and corporate developments.
During an economic downturn or substantial period of rising interest
rates, highly leveraged issuers may experience financial stress that would
adversely affect their ability to service their principal and interest
payment obligations, to meet projected business goals, and to obtain
additional financing. If the issuer of a bond defaulted on its obligations
to pay interest or principal or entered into bankruptcy proceedings, a
Portfolio may incur losses or expenses in seeking recovery of amounts owed
to it. In addition, periods of economic uncertainty and changes can be
expected to result in increased volatility of market prices of high-yield
bonds and the Portfolio's net asset value.
Payment Expectations - High-yield bonds may contain redemption or call
provisions. If an issuer exercised these provisions in a declining
interest rate market, a Portfolio would have to replace the security with
a lower yielding security, resulting in a decreased return for investors.
Conversely, a high-yield bond's value will
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<PAGE> 27
decrease in a rising interest rate market, as will the value of the
Portfolio's assets. If the Portfolio experiences unexpected net
redemptions, this may force it to sell high-yield bonds without regard to
their investment merits, thereby decreasing the asset base upon which
expenses can be spread and possibly reducing the Portfolio's rate of
return.
Liquidity and Valuation - There may be little trading in the secondary
market for particular bonds, which may affect adversely a Portfolio's
ability to value accurately or dispose of such bonds. Adverse publicity
and investor perceptions, whether or not based on fundamental analysis,
may decrease the values and liquidity of high-yield bonds, especially in a
thin market.
CERTAIN RISK FACTORS AFFECTING UTILITY COMPANIES. The Utility Portfolio
may invest in equity and debt securities of utility companies. There are certain
risks and considerations affecting utility companies, and the holders of utility
company securities, which an investor should take into account when investing in
those securities. Factors which may adversely affect utility companies include:
difficulty in financing large construction programs during inflationary periods;
technological innovations which may cause existing plants, equipment, or
products to become less competitive or obsolete; the impact of natural or
man-made disaster (especially on regional utilities); increased costs or
reductions in production due to the unavailability of appropriate types of
fuels; seasonally or occasionally reduced availability or higher cost of natural
gas; and reduced demand due to energy conservation among consumers. These
revenues of domestic and foreign utility companies generally reflect the
economic growth and developments in the geographic areas in which they do
business. Furthermore, utility securities tend to be interest rate sensitive.
In addition, most utility companies in the United States and in foreign
countries are subject to government regulation. Generally, the purpose of such
regulation is to ensure desirable levels of service and adequate capacity to
meet public demand. To this end, prices are often regulated to enable consumers
to obtain service at what is perceived to be a fair price, while attempting to
provide utility companies with a rate of return sufficient to attract capital
investment necessary for continued operation and necessary growth. Recently,
utility regulators have permitted utilities to diversify outside of their
original geographic regions and their traditional lines of business. While the
Subadviser believes that these opportunities will permit certain utility
companies to earn more than their traditional regulated rates of return, other
companies may be forced to defend their core business and may be less
profitable. Of course, there can be no assurance
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<PAGE> 28
that all of the regulatory policies described in this paragraph will continue in
the future.
In addition to the effects of regulation described in the previous
paragraph, utility companies may also be adversely affected by the following
regulatory considerations: (i) the development and implementation of a national
energy policy; (ii) the differences between regulatory policies of different
jurisdictions (or different regulators which have concurrent jurisdiction);
(iii) shifts in regulatory policies; (iv) adequacy of rate increases; and (v)
future regulatory legislation.
Foreign utility companies may encounter different risks and opportunities
than those located in the United States. Foreign utility companies may be more
heavily regulated than their United States counterparts. Many foreign utility
companies currently use fuels which cause more pollution than fuels used by
United States utilities. In the future, it may be necessary for such foreign
utility companies to invest heavily in pollution control equipment or otherwise
meet pollution restrictions. Rapid growth in certain foreign economies may
encourage the growth of utility industries in those countries.
In addition to the foregoing considerations which affect most utility
companies, there are specific considerations which affect specific utility
industries:
Electric. The electric utility industry is composed of companies that are
engaged in the generation, transmission, and sale of electric energy. Electric
utility companies may be affected either favorably or unfavorably, depending
upon the circumstances, by the following: fuel costs; financing costs; size of
the region in which sales are made; operating costs; environmental and safety
regulations; changes in the regulatory environment; and the length of time
needed to complete major construction projects.
In the United States, the construction and operation of nuclear power
facilities is subject to a high degree of regulatory oversight by the Nuclear
Regulatory Commission and state agencies with concurrent jurisdiction. In
addition, the design, construction, licensing, and operation of nuclear power
facilities are often subject to lengthy delays and unanticipated costs due to
changes in regulatory policy, regional political actions, and lawsuits.
Furthermore, during rate authorizations, utility regulators may disallow the
inclusion in electric rates of the higher operating costs and expenditures
resulting from these delays and unanticipated costs, including the costs of a
nuclear facility which a utility company may never be able to use.
Telecommunications. The telephone industry is large and highly
concentrated. The greatest portion of this segment is
B-23
<PAGE> 29
comprised of companies which distribute telephone services and provide access to
the telephone networks. While many telephone companies have diversified into
other businesses in recent years, the profitability of telephone utility
companies could be adversely affected by increasing competition, technological
innovations, and other structural changes in the industry.
Cable television companies are typically local monopolies, subject to
scrutiny by both utility regulators and municipal governments. Emerging
technologies and legislation encouraging local competition are combining to
threaten these monopolies and may slow future growth rates of these companies.
The radio telecommunications segment of this industry, including cellular
telephone, is in its early developmental phase and is characterized by emerging,
rapidly growing companies.
Gas. Gas transmission and distribution companies are undergoing
significant changes. In the United States, the Federal Energy Regulatory
Commission is reducing its regulation of interstate transmission of gas. While
gas utility companies have in the recent past been adversely affected by
disruptions in the oil industry, increased concentration, and increased
competition, the Subadviser believes that environmental considerations should
benefit the gas industry in the future.
Water. Water utility companies purify, distribute, and sell water. This
industry is highly fragmented because most of the water supplies are owned by
local authorities. Water utility companies are generally mature and are
experiencing little or no per capita volume growth. The Subadviser believes that
favorable investment opportunities may result if anticipated consolidation and
foreign participation in this industry occurs.
CONVENTIONAL MORTGAGE PASS-THROUGH SECURITIES. Conventional mortgage
pass-through securities ("Conventional Mortgage Pass-Throughs") represent
participation interests in pools of mortgage loans that are issued by trusts
formed by originators of the institutional investors in mortgage loans (or
represent custodial arrangements administered by such institutions). These
originators and institutions include commercial banks, savings and loans
associations, credit unions, savings banks, insurance companies, investment
banks or special purpose subsidiaries of the foregoing. For federal income tax
purposes, such trusts are generally treated as grantor trusts or real estate
mortgage conduits ("REMIC") and, in either case, are generally not subject to
any significant amount of federal income tax at the entity level.
The mortgage pools underlying Conventional Mortgage Pass-Throughs consist
of conventional mortgage loans evidenced by promissory notes secured by first
mortgages or first deeds of trust or other similar security instruments creating
a first lien on residential or mixed residential and commercial properties.
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Conventional Mortgage Pass-Throughs (whether fixed or adjustable rate) provide
for monthly payments that are a "pass-through" of the monthly interest and
principal payments (including any prepayments) made by the individual borrowers
on the pooled mortgage loans, net of any fees or other amount paid to any
guarantor, administrator and/or servicer of the underlying mortgage loans. A
trust fund with respect to which a REMIC election has been made may include
regular interests in other REMICs which in turn will ultimately evidence
interests in mortgage loans.
Conventional mortgage pools generally offer a higher rate of interest than
government and government-related pools because of the absence of any direct or
indirect government or agency payment guarantees. However, timely payment of
interest and principal of mortgage loans in these pools may be supported by
various forms of insurance or guarantees, including individual loans, title,
pool and hazard insurance and letters of credit. The insurance and guarantees
may be issued by private insurers and mortgage poolers. Although the market for
such securities is becoming increasingly liquid, mortgage-related securities
issued by private organizations may not be readily marketable.
CERTAIN COLLATERALIZED MORTGAGE OBLIGATIONS. Principal and interest on the
underlying mortgage assets may be allocated among the several classes of
Collateralized Mortgage Obligations ("CMOs") in various ways. In certain
structures (known as "sequential pay" CMOs), payments of principal, including
any principal prepayments, on the mortgage assets generally are applied to the
classes of CMOs in the order of their respective final distribution dates. Thus,
no payment of principal will be made on any class of sequential pay CMOs until
all other classes having an earlier final distribution date have been paid in
full.
Additional structures of CMOs include, among others, "parallel pay" CMOs.
Parallel pay CMOs are those which are structured to apply principal payments and
prepayments of the mortgage assets to two or more classes concurrently on a
proportionate or disproportionate basis. These simultaneous payments are taken
into account in calculating the final distribution date of each class.
A wide variety of CMOs may be issued in the parallel pay or sequential pay
structures. These securities include accrual certificates (also known as
"Z-Bonds"), which only accrue interest at a specified rate until all other
certificates having an earlier final distribution date have been retired and are
converted thereafter to an interest-paying security, and planned amortization
class ("PAC") certificates, which are parallel pay CMOs which generally require
that specified amounts of principal be applied on each payment date to one or
more classes of CMOs (the "PAC Certificates"), even though all other principal
payments and prepayments of the mortgage assets are then required to be applied
to one or more other classes of the certificates. The scheduled
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<PAGE> 31
principal payments for the PAC Certificates generally have the highest priority
on each payment date after interest due has been paid to all classes entitled to
receive interest currently. Shortfalls, if any, are added to the amount payable
on the next payment date. The PAC Certificate payment schedule is taken into
account in calculating the final distribution date of each class of PAC. In
order to create PAC tranches, one or more tranches generally must be created
that absorb most of the volatility in the underlying mortgage assets. These
tranches tend to have market prices and yields that are much more volatile than
the PAC classes.
WARRANTS. The Corporate Bond, SunAmerica Balanced, Aggressive Growth,
Federated Value and Utility Portfolios may invest in warrants which give the
holder of the warrant a right to purchase a given number of shares of a
particular issue at a specified price until expiration. Such investments can
generally provide a greater potential for profit or loss than investments of
equivalent amounts in the underlying common stock. The prices of warrants do not
necessarily move with the prices of the underlying securities. If the holder
does not sell the warrant, it risks the loss of its entire investment if the
market price of the underlying stock does not, before the expiration date,
exceed the exercise price of the warrant plus the cost thereof. Investment in
warrants is a speculative activity. Warrants pay no dividends and confer no
rights (other than the right to purchase the underlying stock) with respect to
the assets of the issuer. Although certain of the Portfolios may not invest
directly in warrants, such Portfolios may invest in securities that are acquired
as part of a unit consisting of a combination of fixed-income and equity
securities or securities to which warrants are attached.
DESCRIPTION OF COMMERCIAL PAPER AND BOND RATINGS
COMMERCIAL PAPER RATINGS. Moody's employs the designations "P-1," "P-2"
and "P-3" to indicate commercial paper having the highest capacity for timely
repayment. Issuers rated P-1 have a superior capacity for repayment of
short-term promissory obligations. P-1 repayment capacity will normally be
evidenced by the following characteristics: leading market positions in
well-established industries; high rates of return on funds employed;
conservative capitalization structures with moderate reliance on debt and ample
asset protection; broad margins in earnings coverage of fixed financial charges
and high internal cash generation; and well-established access to a range of
financial markets and assured sources of alternate liquidity. Issues rated P-2
have a strong capacity for repayment of short-term promissory obligations. This
will normally be evidenced by many of the characteristics cited above, but to a
lesser degree. Earnings trends and coverage ratios, while sound, will be more
subject to variation. Capitalization characteristics, while still appropriate,
may be
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more affected by external conditions. Ample alternative liquidity is maintained.
Standard & Poor's ratings of commercial paper are graded into four
categories ranging from A for the highest quality obligations to D for the
lowest. A - Issues assigned its highest rating are regarded as having the
greatest capacity for timely payment. Issues in this category are delineated
with numbers 1, 2, and 3 to indicate the relative degree of safety. A-1 This
designation indicates that the degree of safety regarding timely payment is
either overwhelming or very strong. Those issues determined to possess
overwhelming safety characteristics will be denoted with a plus (+) sign
designation. A-2 - Capacity for timely payments on issues with this designation
is strong. However, the relative degree of safety is not as high as for issues
designated A-1.
Duff & Phelps Rating Co. ("Duff & Phelps") commercial paper ratings are
consistent with the short-term rating criteria utilized by money market
participants. Duff & Phelps commercial paper ratings refine the traditional 1
category. The majority of commercial issuers carry the higher short-term rating
yet significant quality differences within that tier do exist. As a consequence,
Duff & Phelps has incorporated gradations of 1+ and 1- to assist investors in
recognizing those differences.
Duff 1+ - Highest certainty of time repayment. Short-term liquidity,
including internal operating factors and/or access to alternative sources of
funds, is outstanding, and safety is just below risk-free U.S. Treasury
short-term obligations. Duff 1 - Very high certainty of timely payment.
Liquidity factors are excellent and supported by good fundamental protection
factors. Risk factors are minor. Duff 1- - High certainty of timely payment.
Liquidity factors are strong and supported by good fundamental protection
factors. Risk factors are very small. Duff 2 - Good certainty of timely payment.
Liquidity factors and company fundamentals are sound. Although ongoing funding
needs may enlarge total financing requirements, access to capital markets is
good. Risk factors are small. Duff 3 Satisfactory liquidity and other protection
factors, qualify issue as investment grade. Risk factors are larger and subject
to more variation. Nevertheless, timely payment is expected. Duff 4 -
Speculative investment characteristics. Liquidity is not sufficient to insure
against disruption in debt service. Operating factors and market access may be
subject to a high degree of variation. Duff 5 - Default.
The short-term ratings of Fitch Investor Services, Inc. ("Fitch") apply to
debt obligations that are payable on demand or have original maturities of
generally up to three years, including commercial paper, certificates of
deposit, medium-term notes, and municipal and investment notes. The short-term
rating places greater emphasis than a long-term rating on the existence of
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<PAGE> 33
liquidity necessary to meet the issuer's obligations in a timely manner. Fitch
short-term ratings are as follows: F-1+ Exceptionally Strong Credit Quality -
Issues assigned this rating are regarded as having the strongest degree of
assurance for timely payment. F-1 Very Strong Credit Quality -Issues assigned
this rating reflect an assurance of timely payment only slightly less in degree
than issues rated F-1+. F-2 Good Credit Quality - Issues assigned this rating
have a satisfactory degree of assurance for timely payment, but the margin of
safety is not as great as for issues assigned F-1+ and F-1 ratings. F-3 Fair
Credit Quality -Issues assigned this rating have characteristics suggesting that
the degree of assurance for timely payment is adequate, however, near-term
adverse changes could cause these securities to be rated below investment grade.
F-5 Weak Credit Quality -Issues assigned this rating have characteristics
suggesting a minimal degree of assurance for timely payment and are vulnerable
to near-term adverse changes in financial and economic conditions. D Default
- -Issues assigned this rating are in actual or imminent payment default. LOC -
The symbol LOC indicates that the rating is based on a letter of credit issued
by a commercial bank.
Thomson BankWatch, Inc. ("BankWatch") short-term ratings apply only to
unsecured instruments that have a maturity of one year or less. These short-term
ratings specifically assess the likelihood of an untimely payment of principal
and interest. TBW-1 is the highest category, which indicates a very high degree
of likelihood that principal and interest will be paid on a timely basis. TBW-2
is the second highest category and, while the degree of safety regarding timely
repayment of principal and interest is strong, the relative degree of safety is
not as high as for issues rated TBW-1.
CORPORATE DEBT SECURITIES. Moody's rates the long-term debt securities
issued by various entities from "Aaa" to "C." Aaa - Best quality. These
securities carry the smallest degree of investment risk and are generally
referred to as "gilt edge." Interest payments are protected by a larger, or by
an exceptionally stable margin and principal is secure. While the various
protective elements are likely to change, such changes as can be visualized are
more unlikely to impair the fundamentally strong position of these issues. Aa -
High quality by all standards. They are rated lower than the best bond because
margins of protection may not be as large as in Aaa securities, fluctuation of
protective elements may be of greater amplitude, or there may be other elements
present that make the long-term risks appear somewhat greater. A - Upper medium
grade obligations. These bonds possess many favorable investment attributes.
Factors giving security to principal and interest are considered adequate, but
elements may be present that suggest a susceptibility to impairment sometime in
the future. Baa - Medium grade obligations. Interest payments and principal
security appear adequate for the present but certain protective elements may be
lacking or may be characteristically unreliable over any great length of time.
Such
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<PAGE> 34
bonds lack outstanding investment characteristics and, in fact, have speculative
characteristics as well. Ba - Have speculative elements; future cannot be
considered as well assured. The protection of interest and principal payments
may be very moderate and thereby not well safeguarded during both good and bad
times over the future. Bonds in this class are characterized by uncertainty of
position. B - Generally lack characteristics of the desirable investment
assurance of interest and principal payments or of maintenance of other terms of
the contract over any long period of time may be small. Caa - Of poor standing.
Issues may be in default or there may be present elements of danger with respect
to principal or interest. Ca - Speculative in a high degree; often in default or
have other marked shortcomings. C - Lowest rated class of bonds; can be regarded
as having extremely poor prospects of ever attaining any real investment
standings.
Standard & Poor's rates the long-term securities debt of various entities
in categories ranging from "AAA" to "D" according to quality. AAA - Highest
rating. Capacity to pay interest and repay principal is extremely strong. AA -
High grade. Very strong capacity to pay interest and repay principal. Generally,
these bonds differ from AAA issues only in a small degree. A - Have a strong
capacity to pay interest and repay principal, although they are somewhat more
susceptible to the adverse effects of change in circumstances and economic
conditions than debt in higher rated categories. BBB - Regarded as having
adequate capacity to pay interest and repay principal. These bonds normally
exhibit adequate protection parameters, but adverse economic conditions or
changing circumstances are more likely to lead to a weakened capacity to pay
interest and repay principal than for debt in higher rated categories. BB, B,
CCC, CC, C - Regarded, on balance, as predominately speculative with respect to
capacity to pay interest and repay principal in accordance with the terms of the
obligation. BB indicated the lowest degree of speculation and C the highest
degree of speculative. While this debt will likely have some quality and
protective characteristics, these are outweighed by large uncertainties or major
risk exposures to adverse conditions. C1 - Reserved for income bonds on which no
interest is being paid. D - In default and payment of interest and/or repayment
of principal is in arrears.
Fitch rates the long-term debt securities issued by various entities in
categories "AAA" to "D" according to quality. AAA is considered to be investment
grade and of the highest credit quality. The ability to pay interest and repay
principal is exceptionally strong. AA is considered to be investment grade and
of very high credit quality. The ability to pay interest and repay principal is
very strong, although not quite as strong as AAA issues. A is considered to be
investment grade and of high credit quality. The ability to pay interest and
repay principal is strong, but these issues may be more vulnerable to adverse
changes in economic conditions and circumstances than higher rated issues. BBB
is considered to be investment grade and of satisfactory credit quality. The
ability to pay interest and repay principal is adequate. These issues are more
likely to be affected by adverse changes
B-29
<PAGE> 35
in economic conditions and circumstances and, therefore, impair timely payment.
The likelihood that the ratings of these issues will fall below investment grade
is higher than for issues with higher ratings. BB is considered speculative. The
ability to pay interest and repay principal may be affected over time by adverse
economic changes. B is considered highly speculative. The probability of
continued timely payment of principal and interest reflects the obligor's
limited margin of safety and the need for reasonable business and economic
activity throughout the life of the issue. CCC issues are considered to have
certain identifiable characteristics which may lead to default. The ability to
meet obligations requires an advantageous business and economic environment. CC
issues are minimally protected and default in payment of interest and/or
principal seems probable over time. Issues rated C are in imminent default in
payment of interest or principal. DDD, DD, and D issues are in default on
interest and/or principal payments and are extremely speculative. Plus(+) and
minus(-) signs are used with a rating symbol to indicate the relative position
within the rating category.
Duff & Phelps rates long-term debt specifically to credit quality, i.e.,
the likelihood of timely payment for principal and interest. AAA is considered
the highest quality. AA is considered high quality. A is regarded as good
quality. BBB is considered to be investment grade and of satisfactory credit
quality. BB and B are considered to be non-investment grade and CCC is regarded
as speculative. Ratings in the long-term debt categories may include a plus(+)
or minus(-) designation which indicates where within the respective category the
issue is placed.
BankWatch rates the long-term debt securities issued by various entities
either AAA or AA. AAA is the highest category, which indicates the ability to
repay principal and interest on a timely basis is very high. AA is the second
highest category, which indicates a superior ability to repay principal and
interest on a timely basis with limited incremental risk versus issues rated in
the highest category. Ratings in the long-term debt categories may include a
plus (+) or minus (-) designation which indicates where within the respective
category the issue is placed.
INVESTMENT RESTRICTIONS
The Trust has adopted certain investment restrictions for each Portfolio
that cannot be changed without approval by a majority of its outstanding voting
securities. Such majority is defined as the vote of the lesser of (i) 67% or
more of the outstanding shares of the Portfolios present at a meeting, if the
holders of more than
B-30
<PAGE> 36
50% of the outstanding shares are present in person or by proxy or (ii) more
than 50% of the outstanding shares of the Portfolios.
INVESTMENT RESTRICTIONS OF THE CASH MANAGEMENT PORTFOLIO
The Cash Management Portfolio has adopted the following restrictions that
are fundamental policies. These fundamental policies, as well as the Cash
Management Portfolio's investment objective, cannot be changed without approval
by a majority of its outstanding voting securities. All percentage limitations
expressed in the following investment restrictions are measured immediately
after the relevant transaction is made. The Cash Management Portfolio may not:
1. Invest more than 5% of the value of its total assets in the securities
of any one issuer, provided that this limitation shall apply only to 75% of the
value of the Portfolio's total assets, and, provided further, that the
limitation shall not apply to obligations of the government of the U.S. or of
any corporation organized as an instrumentality of the U.S. under a general act
of Congress.
2. As to 75% of its total assets, purchase more than 10% of the
outstanding voting class of securities of an issuer.
3. Invest more than 25% of the Portfolio's total assets in the securities
of issuers in the same industry. Obligations of the U.S. Government, its
agencies and instrumentalities, are not subject to this 25% limitation on
industry concentration. In addition, the Portfolio may, if deemed advisable,
invest more than 25% of its assets in the obligations of domestic commercial
banks.
4. Enter into any repurchase agreement maturing in more than seven days or
invest in any other illiquid security if, as a result, more than 10% of the
Portfolio's total assets would be so invested.
5. Make loans to others except for the purchase of the debt
securities listed above under its Investment Policies. The Portfolio may,
however, enter into repurchase agreements.
6. Borrow money, except from banks for temporary purposes, and then in an
amount not in excess of 5% of the value of the Portfolio's total assets.
Moreover, in the event that the asset coverage for such borrowings falls below
300%, the Portfolio will reduce within three days the amount of its borrowings
in order to provide for 300% asset coverage.
7. Pledge or hypothecate its assets.
B-31
<PAGE> 37
8. Sell securities short except to the extent that the Portfolio
contemporaneously owns or has the right to acquire at no additional cost
securities identical to those sold short.
9. Invest in puts, calls, straddles, spreads or any combination
thereof.
10. Purchase or sell securities of other investment companies (except in
connection with a merger, consolidation, acquisition or reorganization), real
estate or commodities.
11. Act as underwriter of securities issued by others, engage in
distribution of securities for others, or make investments in other companies
for the purpose of exercising control or management.
Notwithstanding investment restriction Number 1 above, in order to comply
with Rule 2a-7 under the 1940 Act, the Cash Management Portfolio has adopted a
more restrictive policy (which may be changed by the trustees without
shareholder approval) of investing no more than 5% of its assets (measured at
the time of purchase) in the securities of any one issuer (other than the U.S.
Government); provided however, that the Cash Management Portfolio may invest, as
to 25% of its assets, more than 5% of its assets in certain high quality
securities (as defined in the Rule) of a single issuer for a period of up to
three business days. The purchase by the Cash Management Portfolio of securities
that have "put" or "stand-by" commitment features are not considered "puts" for
purposes of investment restriction Number 9 above.
INVESTMENT RESTRICTIONS OF THE CORPORATE BOND PORTFOLIO,
GLOBAL BOND PORTFOLIO, HIGH-YIELD BOND PORTFOLIO, WORLDWIDE HIGH INCOME
PORTFOLIO, BALANCED/PHOENIX INVESTMENT COUNSEL PORTFOLIO, SUNAMERICA BALANCED
PORTFOLIO, ASSET ALLOCATION PORTFOLIO, GROWTH-INCOME PORTFOLIO, AGGRESSIVE
GROWTH PORTFOLIO, ALLIANCE GROWTH PORTFOLIO, GROWTH/PHOENIX INVESTMENT
COUNSEL PORTFOLIO, PROVIDENT GROWTH PORTFOLIO, FEDERATED VALUE PORTFOLIO,
VENTURE VALUE PORTFOLIO, UTILITY PORTFOLIO, GLOBAL EQUITIES PORTFOLIO AND
INTERNATIONAL DIVERSIFIED EQUITIES PORTFOLIO
The Corporate Bond Portfolio, Global Bond Portfolio, High-Yield Bond
Portfolio, Worldwide High Income Portfolio, Balanced/Phoenix Investment Counsel
Portfolio, SunAmerica Balanced Portfolio, Asset Allocation Portfolio,
Growth-Income Portfolio, Aggressive Growth Portfolio, Alliance Growth Portfolio,
Growth/Phoenix Investment Counsel Portfolio, Provident Growth Portfolio,
Federated Value Portfolio, Venture Value Portfolio, Utility Portfolio, Global
Equities Portfolio and International Diversified Equities Portfolio have each
adopted the following investment restrictions that are fundamental policies.
These fundamental policies cannot be changed without the approval of the holders
of a majority of the outstanding voting securities of the
B-32
<PAGE> 38
respective Portfolio. All percentage limitations expressed in the following
investment restrictions are measured immediately after the relevant transaction
is made. These Portfolios may not:
1. Other than the Global Bond, Worldwide High Income and International
Diversified Equities Portfolios, invest more than 5% of the value of the total
assets of a Portfolio in the securities of any one issuer, provided that this
limitation shall apply only to 75% of the value of the Portfolio's total assets
and, provided further, that the limitation shall not apply to obligations issued
or guaranteed by the government of the United States or of any of its agencies
or instrumentalities.
2. As to 75% of its total assets, purchase more than 10% of any class of
the outstanding voting securities of an issuer. This restriction does not apply
to the Global Bond, International Diversified Equities and Worldwide High Income
Portfolios.
3. Invest more than 25% of the Portfolio's total assets in the securities
of issuers in the same industry, except that the Utility Portfolio will invest
at least 25% of its total assets in the securities of utility companies.
Obligations of the U.S. Government, its agencies and instrumentalities are not
subject to this 25% limitation on industry concentration. The Portfolio may, if
deemed advisable, invest more than 25% of its assets in the obligations of
domestic commercial banks.
4. Invest in real estate (including limited partnership interests but
excluding securities of companies, such as real estate investment trusts, which
deal in real estate or interests therein); provided that a Portfolio may hold or
sell real estate acquired as a result of the ownership of securities.
5. Purchase commodities or commodity contracts; except that any Portfolio
may engage in transactions in put and call options on securities, indices and
currencies, forward and futures contracts on securities, indices and currencies,
put and call options on such futures contracts, forward commitment transactions,
forward foreign currency exchange contracts, interest-rate, mortgage and
currency swaps and interest-rate floors and caps.
6. Invest in companies for the purpose of exercising control or
management.
7. Make loans to others except for (a) the purchase of debt securities;
(b) entering into repurchase agreements; and (c) with respect to the Corporate
Bond, Global Bond, High-Yield Bond, Worldwide High Income, Balanced/Phoenix
Investment Counsel, SunAmerica Balanced, Asset Allocation, Growth-Income,
Aggressive Growth, Federated Value, Venture Value, Utility, Global Equities and
International Diversified Equities Portfolios, the lending of its portfolio
securities.
B-33
<PAGE> 39
8. Borrow money, except from banks for temporary purposes, and then in an
amount not in excess of one-third of the value of a Portfolio's total assets.
Moreover, in the event that the asset coverage for such borrowings falls below
300%, the Portfolio will reduce, within three days, the amount of its borrowings
in order to provide for 300% asset coverage. A Portfolio, other than the
Worldwide High Income and Aggressive Growth Portfolios, will not purchase
additional securities while the value of their borrowings exceeds 5% of its
total assets. Notwithstanding the foregoing, the Worldwide High Income and
Aggressive Growth Portfolios may borrow for investment purposes.
9. Purchase securities on margin.
10. Pledge, mortgage or hypothecate its assets, except to the extent
necessary to secure permitted borrowings and, to the extent related to the
segregation of assets in connection with the writing of covered put and call
options and the purchase of securities or currencies on a forward commitment or
delayed-delivery basis and collateral and initial or variation margin
arrangements with respect to forward contracts, options, futures contracts and
options on futures contracts. In addition, the Corporate Bond, High-Yield Bond,
Worldwide High Income, SunAmerica Balanced, Aggressive Growth, Federated Value
and Utility Portfolios may pledge units in reverse repurchase agreements.
11. Sell securities short except to the extent that a Portfolio
contemporaneously owns, or has the right to acquire at no additional cost,
securities identical to those sold short. This restriction does not preclude the
segregation of assets by the Worldwide High Income and Aggressive Growth
Portfolios in connection with short sales of securities that it does not
contemporaneously own or have the right to acquire without additional cost.
12. Purchase or sell securities of other investment companies (except in
connection with a merger, consolidation, acquisition or reorganization);
provided, however, that (a) the Global Equities Portfolio may purchase
securities of a closed-end investment company, (b) to the extent permitted by
applicable law and approved by the Trustees, the Asset Allocation and Global
Bond Portfolios may invest uninvested cash balances in any money market fund for
which their respective Subadvisers or any affiliate thereof acts as investment
adviser, and (c) the Worldwide High Income, Balanced/Phoenix Investment Counsel,
SunAmerica Balanced, Federated Value, Venture Value, Utility, International
Diversified Equities and Aggressive Growth Portfolios may purchase securities of
other investment companies; provided, however, that in each case (i) a Portfolio
owns no more than 3% of the total outstanding voting stock of any investment
company, (ii) no more than 5% of the value of a Portfolio's total assets are
invested in securities of any
B-34
<PAGE> 40
investment company, and (iii) no more than 10% of such value is invested in
investment companies in the aggregate.
13. Engage in underwriting of securities issued by others, except to the
extent it may be deemed to be acting as an underwriter in the purchase and
resale of portfolio securities.
In addition to the foregoing, the Corporate Bond, Global Bond, High-Yield
Bond, Worldwide High Income, Balanced/Phoenix Investment Counsel, SunAmerica
Balanced, Asset Allocation, Growth-Income, Aggressive Growth, Alliance Growth,
Growth/Phoenix Investment Counsel, Provident Growth, Federated Value, Venture
Value, Utility, Global Equities and International Diversified Equities
Portfolios have each adopted a non-fundamental policy (which may be changed by
the Trustees without shareholder approval) of not entering into any repurchase
agreement maturing in more than seven days or investing in any other illiquid
security if, as a result, more than 15% of a Portfolio's total assets would be
so invested.
TRUST OFFICERS AND TRUSTEES
The Trustees and executive officers of the Trust, their ages and
principal occupations for the past five years are set forth below. Each Trustee
also serves as a trustee of the Anchor Pathway Fund. Unless otherwise noted, the
address of each executive officer and trustee is 1 SunAmerica Center, Century
City, Los Angeles, California 90067-6022.
<TABLE>
<CAPTION>
Name, Age and Position(s) Principal Occupation(s) During Past
Held with the Trust Five Years
- ------------------------------- -------------------------------------
<S> <C>
RICHARDS D. BARGER, 67, Trustee Senior Partner, Law Firm of Barger &
Wolen; former Director, Anchor
National Life Insurance Company
("Anchor National")(from 1980 to 1986).
FRANK L. ELLSWORTH, 52, Trustee President, the Independent Colleges of
Southern California (1991-present);
President and Professor of Political
Studies, Pitzer College (1979-1991).
NORMAN J. METCALFE, 53, Trustee* Vice Chairman and Chief Financial
Officer, The Irvine Company (March
1993 to Present); Executive Vice
President (1986-1992) and Director
(1984-1993), SunAmerica Inc.;
formerly, President, SunAmerica
Investments, Inc.(1988-1992); and
Executive Vice President and Director,
Anchor National (1986-1992).
</TABLE>
B-35
<PAGE> 41
<TABLE>
<S> <C>
JAMES K. HUNT, 44, Trustee, Executive Vice President, SunAmerica
Chairman and President(*) Investments, Inc. (1993 to present);
President, SunAmerica Corporate
Finance (since January 1994); Senior
Vice President, SunAmerica
Investments, Inc. (1990-1993).
SCOTT L. ROBINSON, 49, Senior Vice Senior Vice President and Controller,
President, Treasurer and Controller SunAmerica Inc. (since 1991); Senior
Vice President of Anchor National
(since 1988); Vice President and
Controller, SunAmerica Inc.
(1986-1991), (joined SunAmerica Inc.
in 1978).
SUSAN L. HARRIS, 38, Senior Vice President (since November
Vice President, Counsel and 1995), Secretary (since 1989) and
Secretary General Counsel - Corporate Affairs
(since December 1994), SunAmerica
Inc.; Senior Vice President and
Secretary, Anchor National (since
1990); Joined SunAmerica Inc. in 1985.
PETER C. SUTTON, 31 Vice President, SunAmerica Asset
Vice President Management Corp.(since September 1994;
Treasurer, SunAmerica Funds (since
February, 1996); Controller, SunAmerica
Mutual Funds (1993-1996); Assistant
Controller, SunAmerica Mutual Funds
(1990-1993).
</TABLE>
- -----------------
* A trustee who may be deemed to be an "interested person" of the Trust as
that term is defined in the 1940 Act.
The Trust pays no salaries or compensation to any of its officers, all of
whom are officers or employees of Anchor National Life Insurance Company or its
affiliates. An annual fee of $7,000, plus $500 for each meeting attended, and
expenses are paid to each Trustee who is not an officer or employee of Anchor
National Life Insurance Company or its affiliates for attendance at meetings of
the Board of Trustees. All other Trustees receive no remuneration from the
Trust.
The following table sets forth information summarizing the compensation of
each of the Trustees for his services as Trustee for the fiscal year ended
November 30, 1995.
B-36
<PAGE> 42
COMPENSATION TABLE
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
Pension or Total Compensation
Retirement from Registrant
Aggregate Benefits Accrued and Fund Complex
Compensation as Part of Fund Paid to Trustees(*)
Trustee from Registrant Expenses
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
Richards D. Barger $7,000 - $20,000
- ----------------------------------------------------------------------------------
Frank L. Ellsworth $7,000 - $20,000
- ----------------------------------------------------------------------------------
Norman J. Metcalfe $7,000 - $20,000
- ----------------------------------------------------------------------------------
</TABLE>
* Information is as of November 30, 1995 for the two Funds in the complex which
pay fees to these directors/trustees (the Trust and Anchor Pathway Fund).
INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT
The Trust, on behalf of each Portfolio, entered into an Investment
Advisory and Management Agreement with SunAmerica Asset Management Corp. to
handle the management of the Trust and its day to day affairs.
The Investment Advisory and Management Agreement (except with respect to
the SunAmerica Balanced, Aggressive Growth, Federated Value and Utility
Portfolios) continues in effect from year to year, in accordance with its terms,
unless terminated, and may be renewed from year to year as to each Portfolio for
so long as such renewal is specifically approved at least annually by (i) the
Board of Trustees, or by the vote of a majority (as defined in the 1940 Act) of
the outstanding voting securities of each relevant Portfolio, and (ii) the vote
of a majority of Trustees who are not parties to the Agreement or interested
persons (as defined in the 1940 Act) of any such party, cast in person, at a
meeting called for the purpose of voting on such approval. With respect to the
SunAmerica Balanced, Aggressive Growth, Federated Value and Utility Portfolios,
the Agreement will continue in effect until September 16, 1997, unless
terminated, and may be renewed from year to year thereafter in the manner set
forth above. The Agreement also provides that it may be terminated by either
party without penalty upon 60 days' written notice to the other party. The
Agreement provides for automatic termination upon assignment.
The Investment Advisory and Management Agreement provides that the Adviser
shall act as investment adviser to the Trust, manage the Trust's investments,
administer its business affairs, furnish
B-37
<PAGE> 43
offices, necessary facilities and equipment, provide clerical, bookkeeping and
administrative services, and permit any of the Adviser's officers or employees
to serve without compensation as Trustees or officers of the Trust if duly
elected to such positions. Under the Agreement, the Trust agrees to assume and
pay certain charges and expenses of its operations, including: direct charges
relating to the purchase and sale of portfolio securities, interest charges,
fees and expenses of independent legal counsel and independent accountants, cost
of stock certificates and any other expenses (including clerical expenses) of
issue, sale, repurchase or redemption of shares, expenses of registering and
qualifying shares for sale, expenses of printing and distributing reports,
notices and proxy materials to shareholders, expenses of data processing and
related services, shareholder recordkeeping and shareholder account service,
expenses of printing and distributing prospectuses and statements of additional
information, expenses of annual and special shareholders' meetings, fees and
disbursements of transfer agents and custodians, expenses of disbursing
dividends and distributions, fees and expenses of Trustees who are not employees
of the Adviser or its affiliates, membership dues in the Investment Company
Institute or any similar organization, all taxes and fees to Federal, state or
other governmental agencies, insurance premiums and extraordinary expenses such
as litigation expenses.
Under the terms of the Advisory Agreement, the Adviser is not liable to
the Trust, or to any other person, for any act or ommission by it or for any
losses sustained by the Trust or its shareholders, except in the case of willful
misfeasance, bad faith, gross negligence or reckless disregard of duty.
Each Portfolio pays its actual expenses for custodian services and a
portion of the Custodian's costs determined by the ratio of portfolio assets to
the total assets of the Trust, brokerage commissions or transaction costs, and
registration fees. Subject to supervision of the Board of Trustees, fees for
independent accountants, legal counsel, costs of reports of notices to
shareholders will be allocated based on the relative net assets of each
Portfolio. With respect to audit or legal fees clearly attributable to one
Portfolio, they will be assessed, subject to review by the Board of Trustees,
against that Portfolio.
As compensation for its services, the Adviser receives from the Trust a
fee, accrued daily and payable monthly, based on the net assets of each
Portfolio. The following table sets forth the total advisory fees received by
the Adviser from each Portfolio pursuant to the Investment Advisory and
Management Agreement for the fiscal years ended November 30, 1995, 1994 and
1993.
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<PAGE> 44
ADVISORY FEES
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Portfolio 1995 1994 1993*
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash Management $ 438,400 $324,890 $ 63,788
- --------------------------------------------------------------------------------
Corporate Bond
(formerly, Fixed Income) $ 144,546 $117,895 $ 17,489
- --------------------------------------------------------------------------------
Global Bond $ 365,313 $291,574 $ 41,215
- --------------------------------------------------------------------------------
High-Yield Bond $ 478,203 $390,246 $111,701
- --------------------------------------------------------------------------------
Worldwide High Income $ 143,765 $ 9,545** n/a
- --------------------------------------------------------------------------------
Balanced/Phoenix
Investment Counsel $ 92,499 $ 745** n/a
- --------------------------------------------------------------------------------
Asset Allocation $1,000,248 $547,474 $ 53,709
- --------------------------------------------------------------------------------
Growth-Income $ 794,078 $475,666 $108,293
- --------------------------------------------------------------------------------
Alliance Growth $ 635,979 $287,322 $ 53,308
- --------------------------------------------------------------------------------
Growth/Phoenix Investment
Counsel $ 835,634 $642,732 $164,746
- --------------------------------------------------------------------------------
Provident Growth $ 785,809 $532,538 $142,566
- --------------------------------------------------------------------------------
Venture Value $ 504,014 $ 1,592** n/a
- --------------------------------------------------------------------------------
Global Equities $1,185,831 $884,882 $102,011
- --------------------------------------------------------------------------------
International Diversified
Equities $ 283,908 $ 10,202** n/a
- --------------------------------------------------------------------------------
</TABLE>
* For the period 2/9/93 (commencement of operations) through 11/30/93
** For the period 10/28/94 (commencement of operations) through 11/30/94
PERSONAL TRADING. The Trust and the Adviser have adopted a written Code of
Ethics (the "Code") which prescribes general rules of conduct and sets forth
guidelines with respect to personal securities trading by "Access Persons"
thereof. An Access Person as defined in the Code is an individual who is a
trustee, director, officer, general partner or advisory person of the Trust or
the Adviser. The guidelines on personal securities trading include: (i)
securities being considered for purchase or sale, or purchased or sold, by any
Investment Company advised by the Adviser, (ii) Initial Public Offerings, (iii)
private placements, (iv) blackout periods, (v) short-term trading profits, (vi)
gifts, and (vii) services as a director. These guidelines are substantially
similar to those contained in the Report of the Advisory Group on Personal
Investing issued by the Investment Company Institute's Advisory Panel. The
Adviser reports to the Board of Trustees on a quarterly
B-39
<PAGE> 45
basis, as to whether there were any violations of the Code by Access Persons of
the Trust or any Subadviser during the quarter.
The Subadvisers have adopted a written Code of Ethics, the provisions of
which are materially similar to those in the Code, and have undertaken to comply
with the provisions of the Code to the extent such provisions are more
restrictive. Further, the Subadvisers report to the Adviser on a quarterly
basis, as to whether there were any Code of Ethics violations by employees
thereof who may be deemed Access Persons of the Trust. In turn, the Adviser
reports to the Board of Trustees as to whether there were any violations of the
Code by Access Persons of the Trust or any Subadviser.
SUBADVISORY AGREEMENTS
Alliance Capital Management L.P. ("Alliance"), Goldman Sachs Asset
Management ("GSAM"), a separate division of Goldman, Sachs & Co., Goldman Sachs
Asset Management International, ("GSAM-International"), an affiliate of Goldman,
Sachs & Co., Morgan Stanley Asset Management Inc., Phoenix Investment Counsel,
Inc., Provident Investment Counsel, Inc., Davis Selected Advisers, L.P. and
Federated Investment Counseling act as Subadvisers to certain of the Trust's
Portfolios pursuant to various Subadvisory Agreements with SAAMCo. Under the
Subadvisory Agreements, the Subadvisers manage the investment and reinvestment
of the assets of the respective Portfolios for which they are responsible. Each
of the Subadvisers is independent of SAAMCo and discharges its responsibilities
subject to the policies of the Trustees and the oversight and supervision of
SAAMCo, which pays the Subadvisers' fees.
The Adviser pays each Subadviser a monthly fee with respect to each
Portfolio for which the Subadviser performs services, computed on average daily
net assets, at the following annual rates:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Subadviser Portfolio Fee
- -----------------------------------------------------------------------------------
<S> <C> <C>
Alliance Alliance Growth and .35% on the first $50 million
Growth-Income Portfolios .30% on the next $100 million
.25% on the next $150 million
.20% on the next $200 million
.15% thereafter
----------------------------------------------------------------
Global Equities .50% on the first $50 million
Portfolio .40% on the next $100 million
.30% on the next $150 million
.25% thereafter
- -----------------------------------------------------------------------------------
</TABLE>
B-40
<PAGE> 46
<TABLE>
- -----------------------------------------------------------------------------------
<S> <C> <C>
Davis Selected Venture Value Portfolio .45% on the first $100 million
Advisers, L.P. .40% on the next $400 million
.35% thereafter
- -----------------------------------------------------------------------------------
Federated Corporate Bond .30% on the first $25 million
Investment Portfolio .25% on the next $25 million
Counseling .20% on the next $100 million
.15% thereafter
----------------------------------------------------------------
Federated Value and .55% on the first $20 million
Utility Portfolios .35% on the next $30 million
.25% on the next $100 million
.20% on the next $350 million
.15% thereafter
- -----------------------------------------------------------------------------------
GSAM Asset Allocation .40% on the first $50 million
Portfolio .30% on the next $100 million
.25% on the next $100 million
.20% thereafter
- -----------------------------------------------------------------------------------
GSAM-International Global Bond Portfolio .40% on the first $50 million
.30% on the next $100 million
.25% on the next $100 million
.20% thereafter
- -----------------------------------------------------------------------------------
Morgan Stanley International .65% on the first $350 million
Asset Management Diversified Equities and .60% thereafter
Inc. Worldwide High Income
Portfolios
- -----------------------------------------------------------------------------------
Phoenix Growth/Phoenix .35% on the first $50 million
Investment Investment Counsel and .30% on the next $100 million
Counsel, Inc. Balanced/Phoenix .25% on the next $150 million
Investment Counsel .20% on the next $200 million
Portfolios .15% thereafter
- -----------------------------------------------------------------------------------
Provident Provident Growth .50% on the first $50 million
Investment Portfolio .45% on the next $100 million
Counsel, Inc. .35% on the next $100 million
.30% on the next $100 million
.25% thereafter
- -----------------------------------------------------------------------------------
</TABLE>
The following table sets forth the fees paid to the Subadvisers for the
fiscal years ended November 30, 1995, 1994 and 1993.
B-41
<PAGE> 47
SUBADVISORY FEES
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Subadviser Portfolio 1995 1994 1993
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alliance Growth $306,832 $143,523 $26,654***
Alliance
------------------------------------------------------------
Growth-Income $379,671 $232,937 $52,638**
------------------------------------------------------------
Global Equities $616,892 $467,441 $56,673**
- -------------------------------------------------------------------------------
Davis Selected
Advisers, L.P. Venture Value $281,866 $ 895* n/a
- -------------------------------------------------------------------------------
Asset Allocation
GSAM $485,722 $275,339 $28,273***
------------------------------------------------------------
Corporate Bond $ 72,273 $ 58,947 $ 8,745***
- -------------------------------------------------------------------------------
GSAM International
Global Bond $194,306 $155,506 $21,981***
- -------------------------------------------------------------------------------
Growth/Phoenix
Phoenix Investment Counsel
Investment $399,134 $310,107 $82,113**
Counsel, Inc.
------------------------------------------------------------
Balanced/
Phoenix Invest-ment
Counsel $ 46,249 $ 372* n/a
- -------------------------------------------------------------------------------
Provident
Investment Provident Growth
Counsel, Inc. $452,955 $310,398 $83,862**
- -------------------------------------------------------------------------------
Worldwide High
Morgan Stanley Income $ 93,447 $ 6,204* n/a
Asset Management
Inc.
------------------------------------------------------------
International
Diversified Equities
$184,540 $ 6,631* n/a
- -------------------------------------------------------------------------------
</TABLE>
* For the period 10/28/94 (commencement of operations) through 11/30/94
** For the period 2/9/93 (commencement of operations) through 11/30/93
*** For the period 7/1/93 (commencement of operations) through 11/30/93
The Subadvisory Agreements (with the exception of the SunAmerica Balanced,
Aggressive Growth, Federated Value, and Utility Portfolios) continue in effect
from year to year, so long as such continuance is specifically approved at least
annually in accordance with the requirements of the 1940 Act. The Subadvisory
Agreements with respect to Corporate Bond, Federated Value and Utility
Portfolios will expire on April 18, 1998. They may be renewed from year to year
thereafter, so long as such continuance is approved at least annually in
accordance with the requirements of the 1940 Act. The Subadvisory Agreements
provide that they will
B-42
<PAGE> 48
terminate in the event of an assignment (as defined in the 1940 Act) or upon
termination of the Advisory Agreement. The Subadvisory Agreements may be
terminated by the Trust, the Adviser or the respective Subadviser upon 60 days'
prior notice.
DIVIDENDS, DISTRIBUTIONS AND FEDERAL TAXES
The following table sets forth the Portfolios' capital loss carryover for the
fiscal year ended November 30, 1995.
CAPITAL LOSS CARRYOVER*
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------
Portfolio 1995
- ----------------------------------------------------------------------
<S> <C>
Corporate Bond $ 291,703
- ----------------------------------------------------------------------
Global Bond $ 889,577
- ----------------------------------------------------------------------
High-Yield Bond $9,010,069
- ----------------------------------------------------------------------
Provident Growth $3,161,237
- ----------------------------------------------------------------------
International Diversified Equities $ 211,683
- ----------------------------------------------------------------------
</TABLE>
* To the extent not yet utilized, such losses will be available to each of
the Portfolios to offset future gains through 2003
PRICE OF SHARES
Shares of the Trust are currently offered only to the Variable Separate
Account. The price paid for shares, the offering price, is the net asset value
per share calculated once daily at the close of regular trading (currently 4:00
p.m., New York time) each day the New York Stock Exchange is open. The New York
Stock Exchange is currently closed on weekends and on the following holidays:
New Year's Day, Presidents' Day, Good Friday, Memorial Day, Independence Day,
Labor Day, Thanksgiving and Christmas Day.
Stocks and convertible bonds and debentures traded on the New York Stock
Exchange are valued at the last sale price on such exchange on the day of
valuation, or if there is no sale on the day of valuation, at the last-reported
bid price. Non-convertible bonds and debentures and other long-term debt
securities normally are valued at prices obtained for the day of valuation from
a bond pricing service, when such prices are available. In circumstances where
the Adviser or subadviser deems it appropriate to do so, an over-the-counter or
exchange quotation (at the mean of
B-43
<PAGE> 49
representative quoted bid or asked prices for such securities or, if such prices
are not available, at prices for securities of comparable maturity, quality and
type) may be used. Securities traded primarily on securities exchanges outside
the United States are valued at the last sale price on such exchanges on the day
of valuation, or if there is no sale on the day of valuation, at the
last-reported bid price. U.S. Treasury bills, and other obligations issued by
the U.S. Government, its agencies or instrumentalities, certificates of deposit
issued by banks, corporate short-term notes and other short-term investments
with original or remaining maturities in excess of 60 days are valued at the
mean of representative quoted bid and asked prices for such securities or, if
such prices are not available, for securities of comparable maturity, quality
and type. Short-term securities with 60 days or less to maturity are amortized
to maturity based on their cost to the Trust if acquired within 60 days of
maturity or, if already held by the Trust on the 60th day, are amortized to
maturity based on the value determined on the 61st day. Options on currencies
purchased by a Portfolio are valued at their last bid price in the case of
listed options or at the average of the last bid prices obtained from dealers in
the case of OTC options. Futures contracts involving foreign currencies traded
on exchanges are valued at their last sale or settlement price as of the close
of such exchanges or if no sales are reported, at the mean between the last
reported bid and asked prices. Other securities are valued on the basis of last
sale or bid price (if a last sale price is not available) in what is, in the
opinion of the Adviser or subadviser, the broadest and most representative
market, that may be either a securities exchange or the over-the-counter market.
Where quotations are not readily available, securities are valued at fair value
as determined in good faith by the Board of Trustees. The fair value of all
other assets is added to the value of securities to arrive at the respective
Portfolio's total assets.
A Portfolio's liabilities, including proper accruals of expense items, are
deducted from total assets. The net asset value of the respective Portfolio is
divided by the total number of shares outstanding to arrive at the net asset
value per share.
EXECUTION OF PORTFOLIO TRANSACTIONS
It is the policy of the Trust, in effecting transactions in portfolio
securities, to seek the best execution at the most favorable prices. The
determination of what may constitute best execution involves a number of
considerations, including the economic result to the Trust (involving both price
paid or received and any commissions and other costs), the efficiency with which
the transaction is effected where a large block is involved, the availability of
the broker to stand ready to execute potentially difficult transactions and the
financial strength and stability of the broker. Such considerations are
judgmental and are considered
B-44
<PAGE> 50
in determining the overall reasonableness of brokerage commissions paid.
A factor in the selection of brokers is the receipt of research services --
analyses and reports concerning issuers, industries, securities, economic
factors and trends -- and other statistical and factual information. Research
and other statistical and factual information provided by brokers is considered
to be in addition to and not in lieu of services required to be performed by the
Adviser or subadviser.
The extent to which commissions may reflect the value of research services
cannot be presently determined. To the extent that research services of value
are provided by broker-dealers with or through whom the Adviser or Subadviser
places the Trust's portfolio transactions, the Adviser or Subadviser may be
relieved of expenses it might otherwise bear. Research services furnished by
broker-dealers could be useful and of value to the Adviser or Subadviser in
serving other clients as well as the Trust and research services obtained by the
Adviser or Subadviser as a result of the placement of portfolio brokerage of
other clients could be useful and of value in serving the Trust.
In the over-the-counter market, securities are generally traded on a "net"
basis with dealers acting as principal for their own accounts without a stated
commission, although the price of a security usually includes a profit to the
dealer. In underwritten offerings, securities are purchased at a fixed price
which includes an amount of compensation to the underwriter, generally referred
to as the underwriter's concession or discount. On occasion, certain money
market instruments may be purchased directly from an issuer, in which case no
commissions or discounts are paid. The Trust has obtained exemptive orders from
the Securities and Exchange Commission (the "SEC"), permitting the Trust in
certain circumstances to deal with securities dealers (that may be deemed to be
affiliated persons of affiliated persons of the Trust solely because of a
subadvisory relationship with one or more Portfolios) as a principal in
purchases and sales of certain securities, and to pay commissions, fees or other
remuneration to such securities dealers in connection with the sale of
securities to or by any of the Portfolios on a securities exchange without
complying with certain of the requirements of Rule 17e-1 under the 1940 Act.
Subject to the above considerations, the Adviser or a Subadviser may use
broker-dealer affiliates of the Adviser or a Subadviser, as a broker for any
Portfolio. In order for such broker-dealer to effect any portfolio transactions
for a Portfolio, the commissions, fees or other remuneration received by the
broker-dealer must be reasonable and fair compared to the commissions, fees or
other remuneration paid to other brokers in connection with comparable
transactions involving similar securities being purchased or sold on a
securities exchange during a comparable period of time. This
B-45
<PAGE> 51
standard would allow such broker-dealer to receive no more than the remuneration
which would be expected to be received by an unaffiliated broker in a
commensurate arm's-length transaction. Furthermore, the Trustees of the Trust,
including a majority of the non-interested Trustees, have adopted procedures
which are reasonably designed to provide that any commissions, fees or other
remuneration paid to such broker-dealers are consistent with the foregoing
standard. These types of brokerage transactions are also subject to such
fiduciary standards as may be imposed upon the broker-dealers by applicable law.
The following tables set forth the brokerage commissions paid by the
Portfolios and the amounts of the brokerage commissions which were paid to
affiliated broker-dealers of such Portfolios for the fiscal years ended November
30, 1995, 1994 and 1993.
1995 BROKERAGE COMMISSIONS
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Percentage paid
Aggregate Amount paid to to Affiliated
Portfolio Brokerage Affiliated Broker-Dealers
Commissions Broker-Dealers
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash Management $ 0 $ 0 0%
- -------------------------------------------------------------------------------
Corporate Bond* $ 562 $ 562 100%
- -------------------------------------------------------------------------------
Global Bond $ 0 $ 0 0%
- -------------------------------------------------------------------------------
High-Yield Bond $ 9,100 $ 0 0%
- -------------------------------------------------------------------------------
Worldwide High Income $ 0 $ 0 0%
- -------------------------------------------------------------------------------
Balanced/Phoenix
Investment Counsel $ 49,029 $ 0 0%
- -------------------------------------------------------------------------------
Asset Allocation* $331,914 $35,946 10.83%
- -------------------------------------------------------------------------------
Growth-Income $262,353 $ 0 0%
- -------------------------------------------------------------------------------
Alliance Growth $353,849 $ 0 0%
- -------------------------------------------------------------------------------
Growth/Phoenix
Investment Counsel $548,063 $ 0 0%
- -------------------------------------------------------------------------------
Provident Growth $118,520 $ 0 0%
- -------------------------------------------------------------------------------
Venture Value $184,729 $ 0 0%
- -------------------------------------------------------------------------------
Global Equities $630,010 $ 0 0%
- -------------------------------------------------------------------------------
</TABLE>
B-46
<PAGE> 52
<TABLE>
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
International
Diversified Equities $117,482 $ 0 0%
- -------------------------------------------------------------------------------
</TABLE>
* For the fiscal year ended November 30, 1995, the percentage of the
aggregate dollar amount of the transactions involving the payment of
commissions effected through affiliated brokers with respect to the
Corporate Bond Portfolio and Asset Allocation Portfolio were 10.34% and
100%, respectively.
1994 BROKERAGE COMMISSIONS
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Percentage Paid
Aggregate Amount paid to to Affiliated
Portfolio Brokerage Affiliated Broker-Dealer
Commissions Broker-Dealer
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash Management $ 0 $ 0 0%
- -------------------------------------------------------------------------------
Corporate Bond $ 0 $ 0 0%
- -------------------------------------------------------------------------------
Global Bond $ 0 $ 0 0%
- -------------------------------------------------------------------------------
High-Yield Bond $ 4,927 $ 0 0%
- -------------------------------------------------------------------------------
Worldwide High Income $ 0* $ 0* 0%*
- -------------------------------------------------------------------------------
Balanced/Phoenix
Investment Counsel $ 1,586* $ 0* 0%*
- -------------------------------------------------------------------------------
Asset Allocation $130,727 $10,637 8.1%
- -------------------------------------------------------------------------------
Growth-Income $187,474 $15,012** 8.0%
- -------------------------------------------------------------------------------
Alliance Growth $195,332 $ 4,162** 2.1%
- -------------------------------------------------------------------------------
Growth/Phoenix
Investment Counsel $484,811 $ 8,300 1.7%
- -------------------------------------------------------------------------------
Provident Growth $118,276 $ 3,963** 3.4%
- -------------------------------------------------------------------------------
Venture Value $ 4,404* $ 0* 0%*
- -------------------------------------------------------------------------------
Global Equities $350,958 $17,858** 5.1%
- -------------------------------------------------------------------------------
International
Diversified Equities $ 24,476* $ 6,194* 25.3%*
- -------------------------------------------------------------------------------
</TABLE>
* For the period 10/28/94 (commencement of operations) through 11/30/94
** All brokerage commissions paid were directed to broker-dealers for
research services provided.
B-47
<PAGE> 53
1993 BROKERAGE COMMISSIONS
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Percentage paid
Aggregate Amount paid to to Affiliated
Portfolio Brokerage Affiliated Broker-Dealer
Commissions Broker-Dealers
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash Management* $ 0 $ 0 0%
- --------------------------------------------------------------------------------
Corporate Bond** $ 0 $ 0 0%
- --------------------------------------------------------------------------------
Global Bond** $ 0 $ 0 0%
- --------------------------------------------------------------------------------
High-Yield Bond* $ 0 $ 0 0%
- --------------------------------------------------------------------------------
Asset Allocation** $ 38,831 $10,932 28.2%
- --------------------------------------------------------------------------------
Growth-Income* $ 72,840 $ 1,197*** 1.6%
- --------------------------------------------------------------------------------
Alliance Growth* $ 37,660 $ 1,208*** 3.2%
- --------------------------------------------------------------------------------
Growth/Phoenix
Investment Counsel* $187,966 $18,973 10.1%
- --------------------------------------------------------------------------------
Provident Growth* $ 55,938 $ 870*** 1.6%
- --------------------------------------------------------------------------------
Global Equities* $ 46,237 $ 553*** 1.2%
- --------------------------------------------------------------------------------
</TABLE>
* For the period 2/9/93 (commencement of operations) through 11/30/93
** For the period 7/1/93 (commencement of operations) through 11/30/93
*** All brokerage commissions paid were directed to broker-dealers for
research services provided.
The policy of the Trust with respect to brokerage is reviewed by the Board of
Trustees from time to time. Because of the possibility of further regulatory
developments affecting the securities exchanges and brokerage practices
generally, the foregoing practices may be modified.
The Adviser and the Subadvisers and their respective affiliates may manage,
or have proprietary interests in, accounts with similar or dissimilar or the
same investment objectives as one or more Portfolios of the Trust. Such account
may or may not be in competition with a Portfolio for investments. Investment
decisions for such accounts are based on criteria relevant to such accounts;
portfolio decisions and results of the Portfolio's investments may differ from
those of such other accounts. There is no obligation to make available for use
in managing the Portfolio any information or strategies used or developed in
managing such accounts. In addition, when two or more accounts seek to purchase
or sell the same assets, the assets actually purchased or sold may be allocated
among accounts on a good faith equitable basis at the discretion of the
account's adviser. In some cases, this system may adversely
B-48
<PAGE> 54
affect the price or size of the position obtainable for a Portfolio.
If determined by the Adviser or Subadviser to be beneficial to the interests
of the Trust, partners and/or employees of the Adviser or subadvisers may serve
on investment advisory committees, which will consult with the subadviser
regarding investment objectives and strategies for the Trust. In connection with
serving on such a committee, such persons may receive information regarding a
Portfolio's proposed investment activities which is not generally available to
unaffiliated market participants, and there will be no obligation on the part of
such persons to make available for use in managing the Portfolio any information
or strategies known to them or developed in connection with their other
activities.
It is possible that a Portfolio's holdings may include securities of entities
for which a subadviser or its affiliate performs investment banking services as
well as securities of entities in which a subadviser or its affiliate makes a
market. From time to time, such activities may limit a Portfolio's flexibility
in purchases and sales of securities. When a subadviser or its affiliate is
engaged in an underwriting or other distribution of securities of an entity, the
subadviser may be prohibited from purchasing or recommending the purchase of
certain securities of that entity for the Portfolio.
GENERAL INFORMATION
CUSTODIAN - State Street Bank and Trust Company ("State Street"), 225
Franklin Street, Boston, Massachusetts 02110, serves as the Trust's custodian.
In this capacity, State Street maintains the portfolio securities held by the
Trust, administers the purchase and sale of portfolio securities and performs
certain other duties. State Street also serves as transfer agent and dividend
disbursing agent for the Trust.
INDEPENDENT ACCOUNTANTS - Price Waterhouse LLP, 1177 Avenue of the Americas,
New York, New York 10036, is the Trust's independent accountants. Price
Waterhouse LLP performs an annual audit of the Trust's financial statements and
provides tax consulting, tax return preparation and accounting services relating
to filings with the SEC.
REPORTS TO SHAREHOLDERS - Persons having a beneficial interest in the Trust
are provided at least semi-annually with reports showing the investments of the
Portfolios, financial statements and other information.
SHAREHOLDER AND TRUSTEE RESPONSIBILITY - Shareholders of a Massachusetts
business trust may, under certain circumstances, be
B-49
<PAGE> 55
held personally liable as partners for the obligations of the Trust. The risk of
a shareholder incurring any financial loss on account of shareholder liability
is limited to circumstances in which the Trust itself would be unable to meet
its obligations. The Declaration of Trust contains an express disclaimer of
shareholder liability for acts or obligations of the Trust and provides that
notice of the disclaimer must be given in each agreement, obligation or
instrument entered into or executed by the Trust or Trustees. The Declaration of
Trust provides for indemnification of any shareholder held personally liable for
the obligations of the Trust and also provides for the Trust to reimburse the
shareholder for all legal and other expenses reasonably incurred in connection
with any such claim or liability.
Under the Declaration of Trust, the trustees or officers are not liable for
actions or failure to act; however, they are not protected from liability by
reason of their willful misfeasance, bad faith, gross negligence or reckless
disregard of the duties involved in the conduct of their office. The Trust
provides indemnification to its trustees and officers as authorized by its
By-Laws and by the 1940 Act and the rules and regulations thereunder.
REGISTRATION STATEMENT - A registration statement has been filed with the
Securities and Exchange Commission under the Securities Act of 1933, as amended
and the 1940 Act. The Prospectus and this Statement of Additional Information do
not contain all information set forth in the registration statement, its
amendments and exhibits thereto, that the Trust has filed with the Securities
and Exchange Commission, Washington, D.C., to all of which reference is hereby
made.
B-50
<PAGE> 56
FINANCIAL STATEMENTS
Set forth following this Statement of Additional Information are the audited
financial statements of the Trust with respect to the fiscal year ended November
30, 1995 and the unaudited financial statements for the period ended November
30, 1996.
B-51
<PAGE> 57
- ---------------------
SUNAMERICA SERIES TRUST
CASH MANAGEMENT PORTFOLIO INVESTMENT PORTFOLIO--NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES--102.2% AMOUNT VALUE
<S> <C> <C>
--------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CERTIFICATE OF DEPOSIT--1.1%
Fuji Bank Ltd. 6.00% due 12/28/95.................................... $1,000,000 $1,000,091
-----------
TOTAL CERTIFICATE OF DEPOSIT (cost $1,000,022)....................... 1,000,091
-----------
CORPORATE SHORT-TERM NOTES--91.2%
Abbey National North America 5.71% due 1/05/96....................... 2,000,000 1,988,858
AT&T Corp. 5.70% due 1/10/96......................................... 2,000,000 1,986,986
Bass Finance (C.I.) Ltd. 5.70% due 12/12/95.......................... 1,000,000 998,249
Bear Stearns & Co., Inc. 5.93% due 12/28/95(1)....................... 2,500,000 2,500,000
Bear Stearns & Co., Inc. 6.14% due 11/30/96.......................... 1,000,000 1,001,140
BHF Finance (DE), Inc. 5.68% due 12/05/95............................ 3,000,000 2,998,047
BIL North America, Inc. 5.70% due 1/09/96............................ 3,000,000 2,980,935
Cemex S.A. 5.69% due 2/22/96......................................... 1,000,000 986,747
Chemical Banking Corp. 5.72% due 1/31/96............................. 2,000,000 1,980,229
Corporacion Andina de Formento 5.74% due 1/31/96..................... 4,000,000 3,961,009
Cosco Co., Ltd. 5.72% due 2/13/96.................................... 2,000,000 1,976,500
Countrywide Funding Corp. 5.80% due 12/07/95......................... 1,000,000 999,033
CPC International, Inc. 5.71% due 1/12/96............................ 2,500,000 2,483,170
Duracell, Inc. 5.84% due 12/13/95.................................... 1,000,000 998,053
Equitable Life Assured Society of the U.S. 5.85% due 12/04/95........ 2,592,000 2,590,736
Fayette Funding L.P. 5.73% due 2/14/96............................... 3,000,000 2,964,343
Ford Motor Credit Co. 9.85% due 5/03/96.............................. 1,500,000 1,524,510
Golden Peanut Co. 5.65% due 2/21/96.................................. 2,000,000 1,973,809
Goldman Sachs & Co. 5.98% due 2/15/96*............................... 1,000,000 987,851
Goldman Sachs Group L.P. 5.60% due 4/09/96........................... 1,000,000 978,687
Goldman Sachs Group L.P. 5.60% due 4/17/96........................... 1,000,000 979,913
Indosuez North American, Inc. 5.71% due 1/04/96...................... 3,000,000 2,983,952
Iowa Student Loan Liquidity Corp. 5.77% due 12/07/95................. 3,084,000 3,081,034
JMG Funding L.P. 5.73% due 1/17/96................................... 2,000,000 1,984,762
Kaiser Foundation Hospitals 5.70% due 1/04/96........................ 1,000,000 994,678
Liberty Mutual Capital 8.50% due 7/08/96............................. 2,000,000 2,033,625
Mayne Nickless Ltd. 5.75% due 2/07/96................................ 2,000,000 1,978,073
Merrill Lynch & Co., Inc. 5.68% due 2/20/96.......................... 1,000,000 984,803
Merrill Lynch & Co., Inc. 5.70% due 1/16/96.......................... 2,000,000 1,985,113
Merrill Lynch & Co., Inc. 5.70% due 3/06/96.......................... 1,000,000 987,062
Morgan J P & Co., Inc. 5.58% due 1/03/96............................. 3,000,000 2,984,505
Morgan Stanley Group, Inc. 5.75% due 1/30/96......................... 2,000,000 1,980,867
NBD Bank N.A., Indianapolis 6.40% due 4/25/96........................ 2,000,000 2,004,240
October Corp. 5.85% due 12/21/95..................................... 2,000,000 1,993,500
PNC Bank N.A., Pittsburgh 5.75% due 12/14/95(1)...................... 3,000,000 3,003,330
Quebec (Province of) 5.70% due 1/30/96............................... 3,000,000 2,970,974
Sanwa Business Credit Corp. 5.80% due 12/11/95....................... 3,000,000 2,995,167
Southland Corp. 5.70% due 3/05/96.................................... 3,000,000 2,954,880
SRD Finance, Inc. 6.05% due 1/18/96.................................. 2,000,000 1,984,374
TMI-1 Fuel Corp. 5.78% due 1/11/96................................... 2,000,000 1,986,834
World Savings & Loan Association 4.88% due 3/01/96................... 1,000,000 997,644
-----------
TOTAL CORPORATE SHORT-TERM NOTES (cost $82,705,217).................. 82,708,222
-----------
</TABLE>
---------------------
5
<PAGE> 58
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES (continued) AMOUNT VALUE
--------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS--4.4%
Illinois Student Assistance Commission 5.97% due 12/05/95(1)......... $2,000,000 $ 2,000,000
New Hampshire State Industrial Development Authority, Revenue 5.85%
due 2/13/96........................................................ 2,000,000 2,000,000
-----------
TOTAL MUNICIPAL BONDS (cost $4,000,000).............................. 4,000,000
-----------
TIME DEPOSIT--5.5%
Cayman Island Time Deposit with Mitsubishi Bank
5.88% due 12/01/95 (cost $5,000,000)............................... 5,000,000 5,000,000
-----------
TOTAL SHORT-TERM SECURITIES (cost $92,705,239)....................... 92,708,313
-----------
REPURCHASE AGREEMENT--1.1%
--------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--1.1%
Joint Repurchase Agreement Account (Note 3)
(cost $973,000).................................................... 973,000 973,000
-----------
TOTAL INVESTMENTS--
(cost $93,678,239) 103.3% 93,681,313
Liabilities in excess of other assets-- (3.3) (2,950,120)
----- -----------
NET ASSETS-- 100.0% $90,731,193
===== ===========
</TABLE>
-----------------------------
* Resale restricted to qualified institutional buyers
(1) Variable rate security; maturity date reflects next reset date
See Notes to Financial Statements
- ---------------------
6
<PAGE> 59
- ---------------------
SUNAMERICA SERIES TRUST
FIXED INCOME PORTFOLIO INVESTMENT PORTFOLIO--NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES--97.4% AMOUNT VALUE
<S> <C> <C>
------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY--1.2%
Housing--1.2%
News America Holdings, Inc. 7.50% 2000............................... $ 150,000 $ 156,927
News America Holdings, Inc. 9.13% 1999............................... 175,000 192,806
-----------
349,733
-----------
CONSUMER STAPLES--0.9%
Food, Beverage & Tobacco--0.9%
RJR Nabisco, Inc. 8.00% 2001......................................... 75,000 76,202
RJR Nabisco, Inc. 8.63% 2002......................................... 185,000 190,866
-----------
267,068
-----------
ENERGY--3.3%
Energy Services--3.3%
Arkla, Inc. 9.20% 1997............................................... 65,000 68,089
Arkla, Inc. 9.88% 1997............................................... 315,000 328,725
National Power Corp. 7.63% 2000...................................... 60,000 59,250
Oryx Energy Co. 9.30% 1996........................................... 200,000 201,782
Oryx Energy Co. 9.50% 1999........................................... 140,000 149,926
Tosco Corp. 7.00% 2000............................................... 175,000 173,250
-----------
981,022
-----------
FINANCE--27.7%
Banks--10.3%
Auburn Hills Trust 12.00% 2020(2).................................... 140,000 213,802
Banco Nacional de Comercio Exterior SNC 11.25% 1996(1)(2)............ 390,000 390,000
BankAmerica Corp. 7.75% 2002......................................... 100,000 107,761
BanPonce Financial Corp. 5.17% 1996.................................. 175,000 173,966
Capital One Bank 7.48% 1996.......................................... 575,000 575,857
Continental Bank NA 12.50% 2001...................................... 300,000 384,204
Corporacion Andina de Fomento 7.25% 1998............................. 210,000 208,950
Corporacion Andina de Fomento 7.38% 2000............................. 70,000 71,059
First USA Bank 8.10% 1997............................................ 250,000 255,800
Security Pacific Corp. 11.50% 2000................................... 275,000 336,889
Signet Banking Corp. 9.63% 1999...................................... 300,000 330,054
Financial Services--17.4%
App International Finance Co. BV 10.25% 2000......................... 20,000 19,700
Case Equipment Loan Trust 7.30% 2002................................. 261,543 267,014
Chrysler Financial Corp. 5.98% 1997(1)............................... 100,000 100,111
Chrysler Financial Corp. 10.34% 2008(2).............................. 200,000 203,636
Countrywide Funding Corp. 7.73% 2001................................. 50,000 53,332
Countrywide Funding Corp. 8.43% 1999................................. 175,000 189,010
Discover Card Trust 7.20% 1998....................................... 208,333 208,398
Financiera Energet 6.63% 1996........................................ 410,000 408,462
First USA, Inc. 5.05% 1995........................................... 200,000 199,854
Ford Capital BV 9.50% 2001........................................... 400,000 460,212
Ford Credit Auto Loan Master Trust 6.50% 2002........................ 200,000 204,312
Ford Credit Grantor Trust 7.30% 1999................................. 73,206 74,418
General Motors Acceptance Corp. 6.30% 2099........................... 412,358 413,904
General Motors Acceptance Corp. 7.13% 2000........................... 90,000 93,565
General Motors Acceptance Corp. 7.50% 1997........................... 75,000 77,263
General Motors Acceptance Corp. 7.63% 1998........................... 175,000 181,484
Premier Auto Trust 4.75% 2000........................................ 189,015 187,125
</TABLE>
---------------------
7
<PAGE> 60
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Premier Auto Trust 4.90% 1998........................................ $ 105,880 $ 105,019
Premier Auto Trust 7.90% 1999........................................ 120,000 124,161
Resolution Funding Corp. zero coupon 2020............................ 680,000 134,273
Resolution Funding Corp. zero coupon 2021............................ 640,000 124,928
Sears Credit Account Master Trust 7.00% 2004......................... 80,000 83,225
Sears Credit Account Master Trust 8.10% 2004......................... 270,000 290,755
Standard Credit Card Master Trust 6.25% 1998......................... 260,000 261,056
Standard Credit Card Master Trust 7.85% 2002......................... 300,000 320,154
Standard Credit Card Master Trust 8.25% 2003......................... 310,000 342,451
-----------
8,176,164
-----------
INDUSTRIAL & COMMERCIAL--1.7%
Aerospace & Military Technology--0.4%
British Aerospace PLC 7.55% 1997*.................................... 100,000 101,711
Multi-Industry--1.3%
Tenneco, Inc. 10.00% 1998............................................ 350,000 383,982
-----------
485,693
-----------
INFORMATION & ENTERTAINMENT--3.8%
Broadcasting & Media--3.3%
Lenfest Communications, Inc. 8.38% 2005.............................. 105,000 104,737
Tele-Communications, Inc. 7.00% 1997................................. 200,000 202,704
Tele-Communications, Inc. 9.65% 2003................................. 150,000 169,005
Time Warner, Inc. 7.45% 1998......................................... 290,000 297,233
Time Warner, Inc. 7.98% 2004......................................... 200,000 209,960
Leisure & Tourism--0.5%
Blockbuster Entertainment Corp. 6.63% 1998........................... 130,000 130,917
-----------
1,114,556
-----------
INFORMATION TECHNOLOGY--3.2%
Communication Equipment--1.5%
Cablevision Industries Corp. 10.75% 2002............................. 420,000 454,650
Computers & Business Equipment--1.7%
Comdisco, Inc. 7.33% 1997............................................ 200,000 203,028
Comdisco, Inc. 9.75% 1997............................................ 275,000 286,148
-----------
943,826
-----------
MATERIALS--0.2%
Forest Products--0.2%
PT Indah Kiat Pulp & Paper Corp. 8.88% 2000.......................... 70,000 66,150
-----------
NON-U.S. GOVERNMENT OBLIGATIONS--3.7%
Foreign Government--3.7%
Petroleo Brasileiro SA 8.75% 1996(1)................................. 250,000 249,830
Quebec Province Canada 13.25% 2014................................... 290,000 367,865
Republic of Argentina Bote II 5.90% 1997(2).......................... 540,000 209,520
Republic of Columbia 9.25% 2000(1)................................... 250,000 252,060
-----------
1,079,275
-----------
U.S. GOVERNMENT & AGENCIES--51.2%
U.S. Government & Agencies--51.2%
Federal Home Loan Bank 8.59% 2000.................................... 70,000 70,218
Federal Home Loan Mortgage Corp. 6.83% 2002.......................... 150,000 152,554
Federal Home Loan Mortgage Corp. 7.00% TBA........................... 2,250,000 2,250,697
Federal Home Loan Mortgage Corp. 7.50% TBA........................... 1,000,000 1,017,810
Federal Home Loan Mortgage Corp. 8.20% 1998.......................... 110,000 113,180
</TABLE>
- ---------------------
8
<PAGE> 61
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT & AGENCIES (continued)
Federal National Mortgage Association 7.00% TBA...................... $1,000,000 $1,011,560
Federal National Mortgage Association 8.79% 2002..................... 60,000 60,300
Government National Mortgage Association 7.50% TBA................... 1,000,000 1,020,620
Government National Mortgage Association 8.00% TBA................... 2,000,000 2,069,360
Government National Mortgage Association 9.50% TBA................... 1,000,000 1,070,000
United States Treasury Bonds 8.00% 2021.............................. 165,000 201,429
United States Treasury Bonds 8.75% 2020.............................. 440,000 576,057
United States Treasury Bonds 11.13% 2003@............................ 60,000 79,828
United States Treasury Bonds 13.75% 2004............................. 720,000 1,107,000
United States Treasury Bonds Strip zero coupon 2020@................. 1,220,000 251,198
United States Treasury Bonds Strip zero coupon 2004@................. 3,310,000 1,966,372
United States Treasury Notes 7.25% 2004.............................. 150,000 164,859
United States Treasury Notes 7.38% 1997.............................. 800,000 828,752
United States Treasury Notes 7.50% 1999.............................. 820,000 876,244
United States Treasury Notes 7.75% 2000.............................. 190,000 205,379
-----------
15,093,417
-----------
UTILITIES--0.5%
Electric Utilities--0.5%
Central Maine Power Co. 7.45% 1999................................... 155,000 161,423
-----------
TOTAL INVESTMENT SECURITIES (cost $28,206,756)....................... 28,718,327
-----------
SHORT-TERM SECURITIES--0.6%
------------------------------------------------------------------------------------------------
FOREIGN SHORT-TERM NOTES--0.6%
Petroleo Brasileiro 8.38% due 12/15/95............................... 120,000 119,622
Republic of Argentina 9.50% due 12/04/95............................. 70,000 70,000
-----------
TOTAL SHORT-TERM SECURITIES (cost $189,622).......................... 189,622
-----------
REPURCHASE AGREEMENTS--27.9%
------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--27.9%
Agreement with Morgan Stanley Group, Inc., bearing interest of 5.87%
dated 11/30/95, to be repurchased 12/01/95 in the amount of
$5,000,815 and collateralized by $3,610,000 U.S. Treasury Bonds
13.375% due 8/15/01................................................ 5,000,000 5,000,000
Agreement with State Street Bank & Trust Co., bearing interest of
5.75% dated 11/30/95, to be repurchased 12/01/95 in the amount of
$3,212,513 and collateralized by $2,950,000 U.S. Treasury Notes
7.75% due 12/31/99@................................................ 3,212,000 3,212,000
-----------
TOTAL REPURCHASE AGREEMENTS (cost $8,212,000)........................ 8,212,000
-----------
TOTAL INVESTMENTS--
(cost $36,608,378) 125.9% 37,119,949
Liabilities in excess of other assets-- (25.9) (7,645,429)
------ -----------
NET ASSETS-- 100.0% $29,474,520
====== ============
</TABLE>
-----------------------------
* Resale restricted to qualified institutional buyers
(1) Fair valued security; see Note 2
(2) Variable rate security; rate as of November 30, 1995
TBA-- Securities purchased on a forward commitment basis with an
approximate principal amount and no definitive maturity date.
The actual principal amount and maturity date will be
determined upon settlement.
---------------------
9
<PAGE> 62
@ The security or a portion thereof represents collateral for the
following open futures contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
<C> <S> <C> <C> <C>
----------------------------------------------------------------------------------------------------------
<CAPTION>
UNREALIZED
NUMBER OF EXPIRATION VALUE AS OF APPRECIATION/
CONTRACTS DESCRIPTION DATE NOVEMBER 30, 1995 (DEPRECIATION)
----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
2 Long 90 Day Euro Dollar................... December 1995 $ 471,300 $ 584
1 Long 90 Day Euro Dollar................... March 1996 236,700 1,417
1 Long 90 Day Euro Dollar................... June 1996 236,975 2,093
1 Long 90 Day Euro Dollar................... September 1996 236,950 2,417
1 Long 90 Day Euro Dollar................... December 1996 236,700 2,618
1 Long 90 Day Euro Dollar................... March 1997 236,650 2,643
17 Long U.S. Long Bond....................... December 1995 2,029,906 31,739
8 Long U.S. 5 Year Note..................... March 1996 877,000 3,189
8 Short U.S. 10 Year Note.................... March 1996 907,000 (6,811)
--------------
Net Unrealized Appreciation................................................ $ 39,889
==============
</TABLE>
See Notes to Financial Statements
- ---------------------
10
<PAGE> 63
- ---------------------
SUNAMERICA SERIES TRUST
GLOBAL BOND PORTFOLIO INVESTMENT PORTFOLIO--NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(DENOMINATED IN
FOREIGN BONDS & NOTES--61.9% LOCAL CURRENCY) VALUE
<S> <C> <C>
------------------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
BELGIUM--2.8%
Kingdom of Belgium 6.50% 2005........................................ 50,000,000 $ 1,650,690
---------------
CANADA--7.0%
Government of Canada 7.50% 2000...................................... 5,500,000 4,178,138
---------------
DENMARK--7.6%
Kingdom of Denmark 8.00% 2006........................................ 16,000,000 2,968,654
Kingdom of Denmark 9.00% 2000........................................ 8,000,000 1,576,865
---------------
4,545,519
---------------
FRANCE--12.5%
Government of France 7.00% 1999...................................... 15,000,000 3,104,298
Government of France 8.25% 2004...................................... 10,000,000 2,184,150
Government of France 8.50% 2000...................................... 10,000,000 2,179,541
---------------
7,467,989
---------------
GERMANY--9.9%
Republic of Germany 7.13% 2002....................................... 5,500,000 4,072,807
Republic of Germany 7.38% 2005....................................... 2,500,000 1,862,338
---------------
5,935,145
---------------
JAPAN--4.1%
International Bank for Reconstruction & Development 6.75% 2001....... 150,000,000 1,839,066
Japan Development Bank 6.50% 2001.................................... 50,000,000 609,644
---------------
2,448,710
---------------
NEW ZEALAND--5.3%
Government of New Zealand 6.50% 2000................................. 5,000,000 3,185,676
---------------
SPAIN--4.7%
Government of Spain 10.00% 2005...................................... 350,000,000 2,807,269
---------------
SWEDEN--4.4%
Kingdom of Sweden 10.25% 2003........................................ 16,000,000 2,653,943
---------------
UNITED KINGDOM--3.6%
United Kingdom Treasury 8.50% 2005................................... 500,000 815,456
United Kingdom Treasury 9.00% 2000................................... 800,000 1,318,126
---------------
2,133,582
---------------
TOTAL FOREIGN BONDS & NOTES (cost $36,895,021)....................... 37,006,661
---------------
</TABLE>
---------------------
11
<PAGE> 64
<TABLE>
<CAPTION>
PRINCIPAL
U.S. GOVERNMENT AND AGENCIES--25.4% AMOUNT VALUE
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT--25.4%
United States Treasury Notes 6.13% 2000.............................. $ 4,000,000 $ 4,093,760
United States Treasury Notes 6.25% 2000.............................. 2,000,000 2,055,940
United States Treasury Notes 6.25% 2003.............................. 1,250,000 1,291,213
United States Treasury Notes 6.50% 2005.............................. 1,000,000 1,052,340
United States Treasury Notes 6.88% 1999.............................. 1,500,000 1,566,795
United States Treasury Notes 7.88% 2004.............................. 4,500,000 5,146,875
---------------
TOTAL U.S. GOVERNMENT AND AGENCIES (cost $14,402,477)................ 15,206,923
---------------
TOTAL INVESTMENT SECURITIES (cost $51,297,498)....................... 52,213,584
---------------
<CAPTION>
SHORT-TERM SECURITIES--13.9%
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT--13.9%
Cayman Island Time Deposit with State Street Bank & Trust Co.
5.69% due 12/01/95 (cost $8,281,000)............................... 8,281,000 8,281,000
---------------
TOTAL INVESTMENTS--
(cost $59,578,498) 101.2% 60,494,584
Liabilities in excess of other assets-- (1.2) (735,540)
------ ---------------
NET ASSETS-- 100.0% $59,759,044
====== =============
</TABLE>
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
GROSS
CONTRACT IN DELIVERY UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
<CAPTION>
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
BEF 47,612,500 USD 1,670,614 02/29/96 $ 61,513
CAD 5,648,199 USD 4,196,877 02/05/96 39,409
*CAD 3,622,085 USD 2,690,000 07/18/96 23,762
*DEM 410,000 USD 286,393 12/18/95 2,653
DEM 235,192 USD 164,286 12/18/95 1,522
DEM 3,524,199 USD 2,509,720 01/24/96 66,132
DEM 2,813,944 USD 1,994,588 01/24/96 43,472
DEM 2,181,899 USD 1,544,161 01/24/96 31,288
DEM 439,532 USD 314,603 01/24/96 9,843
DEM 4,166,640 USD 2,910,000 03/04/96 15,362
*DEM 4,570,000 FRF 16,111,992 01/31/96 68,746
*DEM 3,520,764 USD 2,459,321 12/18/95 24,996
DKK 5,417,250 USD 982,989 02/06/96 14,677
DKK 3,290,700 USD 606,357 02/06/96 18,158
DKK 17,230,222 USD 3,151,678 02/06/96 71,846
ESP 359,461,083 USD 2,943,447 02/27/96 52,638
FRF 38,645,000 USD 7,843,993 02/29/96 107,256
GBP 1,418,656 USD 2,193,951 12/11/95 22,581
*GBP 6,651 USD 10,288 12/11/95 104
*GBP 1,245,941 USD 1,926,848 12/11/95 19,406
*GBP 1,575,151 USD 2,435,971 12/11/95 24,533
JPY 6,728,231 USD 66,562 12/18/95 253
JPY 253,179,241 USD 2,519,196 12/18/95 24,035
JPY 238,248,062 USD 2,401,186 01/17/96 42,356
*JPY 271,285,433 USD 2,683,802 12/18/95 17,606
*JPY 171,663,221 USD 1,730,110 01/17/96 43,002
*JPY 168,692,852 USD 1,700,173 01/17/96 42,258
*USD 2,620,332 CAD 3,622,085 07/18/96 45,906
----------
935,313
----------
</TABLE>
- ---------------------
12
<PAGE> 65
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS (continued)
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
GROSS
CONTRACT IN DELIVERY UNREALIZED
TO DELIVER EXCHANGE FOR DATE DEPRECIATION
<CAPTION>
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
BEF 79,681,869 DEM 3,862,801 09/09/96 $ (6,713)
*FRF 16,111,992 DEM 4,610,144 01/31/96 (40,989)
*JPY 29,663,500 DEM 410,000 12/18/95 (8,603)
*NZD 3,643,014 USD 2,351,930 12/12/95 (26,483)
SEK 17,893,529 USD 2,706,138 02/07/96 (7,983)
*USD 10,489 GBP 6,651 12/11/95 (306)
*USD 1,961,112 GBP 1,245,941 12/11/95 (53,669)
*USD 2,434,868 GBP 1,575,151 12/11/95 (23,431)
*USD 2,387,048 NZD 3,643,014 12/12/95 (8,636)
*USD 2,698,552 JPY 271,285,433 12/18/95 (32,356)
*USD 2,493,000 DEM 3,520,764 12/18/95 (58,675)
*USD 1,723,128 JPY 171,663,221 01/17/96 (36,021)
*USD 1,683,477 JPY 168,692,852 01/17/96 (25,562)
----------
(329,427)
----------
Net Unrealized Appreciation.................. $ 605,886
===========
</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.
<TABLE>
<S> <C> <C>
BEF--Belgian Franc ESP--Spanish Peseta NZD--New Zealand Dollar
CAD--Canadian Dollar FRF--French Franc SEK--Swedish Krona
DEM--Deutsche Mark GBP--Pound Sterling USD--United States Dollar
</TABLE>
See Notes to Financial Statements
---------------------
13
<PAGE> 66
- ---------------------
SUNAMERICA SERIES TRUST
HIGH-YIELD BOND PORTFOLIO INVESTMENT PORTFOLIO--NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES--93.1% AMOUNT VALUE
<S> <C> <C>
------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY--4.9%
Retail--4.9%
County Seat Stores, Inc. 12.00% 2002................................. $1,000,000 $ 900,000
Hills Stores Co. 10.25% 2003......................................... 1,000,000 910,000
Thrifty PayLess Holdings, Inc. 12.25% 2004........................... 1,000,000 1,067,500
Thrifty PayLess Holdings, Inc. 12.25% 2004(1)........................ 1,000,000 1,135,000
-----------
4,012,500
-----------
CONSUMER STAPLES--8.6%
Food Retail--3.8%
Kash 'N Karry Food Stores, Inc. 11.50% 2003(2)....................... 2,135,400 2,167,431
Ralph's Supermarkets, Inc. 11.00% 2005............................... 1,000,000 960,000
Food, Beverage & Tobacco--1.1%
Specialty Foods Corp. 11.13% 2002.................................... 1,000,000 945,000
Household Products--3.7%
Herff Jones, Inc. 11.00% 2005*....................................... 2,000,000 2,100,000
Samsonite Corp. 11.13% 2005.......................................... 1,000,000 940,000
-----------
7,112,431
-----------
ENERGY--0.5%
Energy Services--0.5%
DeepTech International, Inc. 12.00% 2000............................. 500,000 437,500
-----------
FINANCE--2.0%
Financial Services--0.7%
Olympic Financial Ltd. 13.00% 2000................................... 500,000 540,000
Insurance--1.3%
Terra Nova Insurance United Kingdom Holdings PLC 10.75% 2005......... 1,000,000 1,080,000
-----------
1,620,000
-----------
HEALTHCARE--17.4%
Health Services--12.9%
Abbey Healthcare Group, Inc. 9.50% 2002.............................. 2,000,000 2,120,000
OrNda Healthcorp 12.25% 2002......................................... 2,000,000 2,190,000
Quorum Health Group, Inc. 8.75% 2005................................. 2,000,000 2,015,000
Tenet Healthcare Corp. 8.63% 2003.................................... 2,000,000 2,065,000
Tenet Healthcare Corp. 10.13% 2005................................... 2,000,000 2,170,000
Medical Products--4.5%
Amerisource Distribution Corp. 11.25% 2005........................... 1,028,125 1,115,516
Dade International, Inc. 13.00% 2005................................. 500,000 553,750
Ivac Corp. 9.25% 2002................................................ 2,000,000 2,035,000
-----------
14,264,266
-----------
INDUSTRIAL & COMMERCIAL--6.0%
Business Services--2.7%
Katz Corp. 12.75% 2002............................................... 1,000,000 1,107,500
United Stationers Supply Co. 12.75% 2005............................. 1,000,000 1,080,000
Multi-Industry--2.3%
International Semi-Tech Microelectronic, Inc. zero coupon 2003(3).... 2,000,000 1,030,000
J.B. Poindexter & Co. 12.50% 2004(4)................................. 1,000,000 850,000
</TABLE>
- ---------------------
14
<PAGE> 67
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Transportation--1.0%
USAir, Inc. 10.00% 2003.............................................. $1,000,000 $ 846,250
-----------
4,913,750
-----------
INFORMATION & ENTERTAINMENT--28.6%
Broadcasting & Media--18.5%
Argyle Television, Inc. 9.75% 2005................................... 1,000,000 986,250
Bell Cablemedia PLC zero coupon 2005*(3)............................. 2,000,000 1,210,000
Century Communications Corp. 11.88% 2003............................. 2,000,000 2,140,000
Comcast UK Cable Partners Ltd. zero coupon 2007(3)................... 1,000,000 570,000
International CableTel, Inc. zero coupon 2005(3)..................... 1,000,000 610,000
Lenfest Communications, Inc. 8.38% 2005.............................. 1,500,000 1,496,250
NWCG Holding Corp. zero coupon 1999.................................. 3,000,000 2,006,250
Simmons Cable Co. 15.75% 1996(4)..................................... 2,000,000 1,047,500
Sinclair Broadcast Group, Inc. 10.00% 2005........................... 2,000,000 2,045,000
Telewest PLC zero coupon 2007(3)..................................... 1,875,000 1,087,500
United International Holdings, Inc. zero coupon 1999................. 1,750,000 1,025,937
Videotron Holdings PLC zero coupon 2005(3)........................... 1,700,000 1,003,000
Leisure & Tourism--10.1%
Bally's Park Place Funding, Inc. 9.25% 2004.......................... 1,000,000 997,500
Grand Casino, Inc. 10.13% 2003....................................... 1,500,000 1,533,750
Hammons John Q Hotels LP 9.75% 2005*................................. 1,000,000 1,003,750
HMH Properties, Inc. 9.50% 2005...................................... 2,000,000 2,015,000
Players International, Inc. 10.88% 2005.............................. 1,000,000 950,000
Santa Fe Hotel, Inc. 11.00% 2000..................................... 907,000 634,900
Showboat, Inc. 13.00% 2009........................................... 1,000,000 1,110,000
-----------
23,472,587
-----------
INFORMATION TECHNOLOGY--11.8%
Telecommunications--11.8%
Cellular Communications International, Inc. zero coupon 2000(1)...... 2,000,000 1,165,000
Comcast Cellular Corp. zero coupon 2000.............................. 1,500,000 1,147,500
Echostar Communications Corp. zero coupon 2004(1)(3)................. 1,000,000 690,000
In Flight Phone Corp. zero coupon 2002*(3)........................... 1,000,000 350,000
Mobile Telecommunication Technologies Corp. 13.50% 2002.............. 1,000,000 1,137,500
Mobilemedia Corp. 9.38% 2007......................................... 1,000,000 1,007,500
Paging Network, Inc. 11.75% 2002..................................... 1,000,000 1,102,500
PanAmSat, L.P. zero coupon 2003(3)................................... 2,500,000 2,012,500
Pricecellular Wireless Corp. zero coupon 2003(3)..................... 1,500,000 1,117,500
-----------
9,730,000
-----------
MATERIALS--13.3%
Chemicals--10.7%
Acetex Corp. 9.75% 2003*............................................. 1,000,000 1,023,750
Agriculture Minerals & Chemicals 10.75% 2003......................... 1,000,000 1,090,000
Arcadian Partners L.P. 10.75% 2005................................... 1,000,000 1,095,000
G I Holdings, Inc. zero coupon 1998.................................. 2,000,000 1,520,000
LaRoche Industries, Inc. 13.00% 2004................................. 2,000,000 2,120,000
OSI Specialties Holdings Co. zero coupon 2004(3)..................... 1,000,000 875,260
Terra Industries 10.50% 2005......................................... 1,000,000 1,090,000
Forest Products--1.3%
Stone Container Corp. 11.88% 1998.................................... 1,000,000 1,055,000
</TABLE>
---------------------
15
<PAGE> 68
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Metals & Minerals--1.3%
Renco Metals, Inc. 12.00% 2000....................................... $1,000,000 $ 1,080,000
-----------
10,949,010
-----------
TOTAL BONDS & NOTES (cost $75,802,446)............................... 76,512,044
-----------
COMMON STOCK--0.0% SHARES
------------------------------------------------------------------------------------------------
CONSUMER STAPLES--0.0%
Food Retail--0.0%
Smitty's Supermarkets, Inc. ......................................... 500 3,250
-----------
INFORMATION & ENTERTAINMENT--0.0%
Leisure & Tourism--0.0%
Capital Gaming International, Inc. .................................. 40,000 2,500
-----------
TOTAL COMMON STOCK (cost $156,260)................................... 5,750
-----------
PREFERRED STOCK--1.3%
------------------------------------------------------------------------------------------------
MATERIALS--1.3%
Forest Products--1.3%
SDW Holdings Corp.(1)(4) (cost $1,000,554)........................... 3,700 1,073,000
-----------
<CAPTION>
WARRANTS--0.1%+
------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY--0.0%
Housing--0.0%
NVR, Inc. ........................................................... 6,857 14,571
-----------
CONSUMER STAPLES--0.0%
Household Products--0.0%
Chattem, Inc.*....................................................... 1,000 2,875
-----------
INFORMATION & ENTERTAINMENT--0.1%
Broadcasting & Media--0.0%
United International Holdings, Inc. ................................. 1,750 4,200
Leisure & Tourism--0.1%
Casino Magic Finance Corp. .......................................... 6,000 2,775
Fitzgerald Gaming Corp.(4)........................................... 2,000 20,000
-----------
26,975
-----------
</TABLE>
- ---------------------
16
<PAGE> 69
<TABLE>
<CAPTION>
WARRANTS (continued) SHARES VALUE
------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY--0.0%
Telecommunications--0.0%
In Flight Phone Corp................................................. 1,000 $ 0
-----------
TOTAL WARRANTS (cost $10,558)........................................ 44,421
-----------
TOTAL INVESTMENT SECURITIES (cost $76,969,818)....................... 77,635,215
-----------
TOTAL INVESTMENTS--
(cost $76,969,818) 94.5% 77,635,215
Other assets less liabilities-- 5.5 4,538,452
------ -----------
NET ASSETS-- 100.0% $82,173,667
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
(1) Consists of more than one class of securities traded together
as a unit; generally bonds with attached stocks or warrants
(2) PIK ("Payment-in-Kind") payment made with additional
securities in lieu of cash
(3) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date
(4) Fair valued security; see Note 2
See Notes to Financial Statements
---------------------
17
<PAGE> 70
- ---------------------
SUNAMERICA SERIES TRUST
WORLDWIDE HIGH INCOME
PORTFOLIO INVESTMENT PORTFOLIO--NOVEMBER 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES--96.1% AMOUNT VALUE
<S> <C> <C>
------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY--8.4%
Apparel & Textiles--2.3%
Westpoint Stevens, Inc. 9.38% 2005................................... $ 500,000 $ 502,500
Housing--6.1%
Companhia Brasileira de Petroleo Ipiranga 12.50% 1997*(5)............ 500,000 492,500
Minas Gerais 8.25% 2000.............................................. 1,000,000 817,500
-----------
1,812,500
-----------
CONSUMER STAPLES--13.5%
Food, Beverage & Tobacco--13.5%
Empresas La Moderna 10.25% 1997...................................... 1,000,000 961,875
Fomento Economico Mexicano 9.50% 1997................................ 1,000,000 972,500
Grupo Embatellador de Mexico 10.75% 1997............................. 1,000,000 977,500
-----------
2,911,875
-----------
FINANCE--9.4%
Banks--9.4%
Banamex Pagare 14.52% 1997........................................MXN 6,446,250 433,828
Banco De Galicia Y Buenos Aires 9.00% 2003........................... 1,500,000 1,239,375
Central Bank of Nigeria 6.25% 2020................................... 750,000 352,500
-----------
2,025,703
-----------
INDUSTRIAL & COMMERCIAL--9.2%
Business Services--2.3%
Norcal Waste Systems, Inc. 12.50% 2005*(2)........................... 500,000 500,000
Multi-Industry--4.0%
Iochpe Maxion SA 12.38% 2002......................................... 500,000 430,000
Iochpe Maxion SA 12.38% 2002*(5)..................................... 500,000 430,000
Transportation--2.9%
Southland Corp. 5.00% 2003........................................... 750,000 624,375
-----------
1,984,375
-----------
INFORMATION & ENTERTAINMENT--5.8%
Broadcasting & Media--3.4%
Continental Cablevision, Inc. 9.50% 2013............................. 200,000 210,500
Marvel Parent Holdings, Inc. zero coupon 1998........................ 300,000 210,000
Viacom, Inc. 8.00% 2006.............................................. 300,000 301,500
Leisure & Tourism--2.4%
Six Flags Theme Parks, Inc. zero coupon 2005*(1)..................... 675,000 524,813
-----------
1,246,813
-----------
INFORMATION TECHNOLOGY--7.4%
Telecommunications--7.4%
Telecom Argentina 12.00% 2002*(5).................................... 800,000 825,000
Tolmex SA de CV 8.38% 2003........................................... 1,000,000 758,750
-----------
1,583,750
-----------
</TABLE>
- ---------------------
18
<PAGE> 71
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS--17.5%
Chemicals--5.4%
Petroleos Mexicanos 8.63% 2023*...................................... $1,000,000 $ 703,750
Plastic Specialty & Technology, Inc. 11.25% 2003..................... 500,000 452,500
Forest Products--3.4%
Owens Illinois, Inc. 9.75% 2004...................................... 500,000 520,000
Stone Container Corp. 10.75% 2002.................................... 200,000 205,250
Metals & Minerals--8.7%
Algoma Steel, Inc. 12.38% 2005....................................... 500,000 438,750
Hylsa SA de Cv 11.00% 1998........................................... 1,000,000 965,000
Sheffield Steel Corp. 12.00% 2001(3)................................. 500,000 470,000
-----------
3,755,250
-----------
NON-U.S. GOVERNMENT OBLIGATIONS--11.9%
Foreign Government--11.9%
Federal Republic of Brazil 8.00% 2014(4)............................. 265,302 140,278
Federal Republic of Brazil 6.81% 2006(2)............................. 250,000 164,843
Republic of Bulgaria 6.75% 2024(2)................................... 750,000 379,688
Republic of Ecuador 6.81% 2015(4).................................... 1,021,486 334,537
Republic of Ecuador 6.81% 2025(2).................................... 1,400,000 682,500
Republic of Poland 3.75% 2014........................................ 1,350,000 867,375
-----------
2,569,221
-----------
UTILITIES--13.0%
Electric Utilities--0.7%
Columbia Gas Systems, Inc. 6.39% 2000................................ 23,000 23,151
Columbia Gas Systems, Inc. 6.61% 2002................................ 20,000 20,181
Columbia Gas Systems, Inc. 6.80% 2005................................ 20,000 20,214
Columbia Gas Systems, Inc. 7.05% 2007................................ 20,000 19,935
Columbia Gas Systems, Inc. 7.32% 2010................................ 20,000 20,053
Columbia Gas Systems, Inc. 7.42% 2015................................ 20,000 19,875
Columbia Gas Systems, Inc. 7.62% 2025................................ 20,000 19,850
Gas & Pipeline Utilities--12.3%
Bridas Corp. 12.50% 1999............................................. 1,500,000 1,452,187
Metrogas SA 12.00% 2002*............................................. 300,000 294,000
Transportadora de Gas Del Sur 7.75% 1998............................. 1,000,000 912,500
-----------
2,801,946
-----------
TOTAL BONDS & NOTES (cost $20,307,397)............................... 20,691,433
-----------
<CAPTION>
COMMON STOCK--0.1% SHARES
------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES--0.1%
Electric Utilities--0.1%
Columbia Gas Systems, Inc. (cost $8,775)............................. 351 14,215
-----------
<CAPTION>
PREFERRED STOCK--0.1%
------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES--0.1%
Electric Utilities--0.1%
Columbia Gas Systems, Inc. (cost $14,325)............................ 573 14,039
-----------
</TABLE>
---------------------
19
<PAGE> 72
<TABLE>
<CAPTION>
WARRANTS--0.0%+ SHARES VALUE
<S> <C> <C>
------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
FINANCE--0.0%
Banks--0.0%
Central Bank of Nigeria (cost $0).................................... 750 $ 0
-----------
TOTAL INVESTMENT SECURITIES (cost $20,330,497)....................... 20,719,687
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT--6.7% AMOUNT
<S> <C> <C>
------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
REPURCHASE AGREEMENT--6.7%
Agreement with State Street Bank & Trust Co., bearing interest of
4.50% dated 11/30/95, to be repurchased 12/01/95 in the amount of
$1,434,179 and collateralized by $1,013,000 U.S. Treasury Bonds
12.00% due 5/15/05 (cost $1,434,000)............................... $1,434,000 1,434,000
-----------
TOTAL INVESTMENTS--
(cost $21,764,497) 103.0% 22,153,687
Liabilities in excess of other assets-- (3.0) (638,607)
------ -----------
NET ASSETS-- 100.0% $21,515,080
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
(1) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date
(2) Variable rate security; rate as of November 30, 1995
(3) Consists of more than one class of securities traded together
as a unit; generally bonds with attached stocks or warrants
(4) A portion of the coupon interest is received in cash and a
portion is capitalized in the principal of the security
(5) Fair valued security; see Note 2
MXN Mexican Peso
Allocation of net assets by country as of November 30, 1995:
<TABLE>
<S> <C>
Mexico 31.0%
United States 30.7
Argentina 17.7
Brazil 11.5
Ecuador 4.7
Poland 4.0
Bulgaria 1.8
Nigeria 1.6
</TABLE>
See Notes to Financial Statements
- ---------------------
20
<PAGE> 73
- ---------------------
SUNAMERICA SERIES TRUST
BALANCED/PHOENIX INVESTMENT
COUNSEL PORTFOLIO INVESTMENT PORTFOLIO--NOVEMBER 30, 1995
<TABLE>
<CAPTION>
COMMON STOCK--50.2% SHARES VALUE
<S> <C> <C>
------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY--2.2%
Retail--2.2%
General Nutrition Cos., Inc.+........................................ 10,000 $ 221,250
Nine West Group, Inc. ............................................... 3,000 133,125
Office Depot, Inc.+.................................................. 7,500 183,750
Staples, Inc.+....................................................... 7,000 178,500
-----------
716,625
-----------
CONSUMER STAPLES--3.4%
Food, Beverage & Tobacco--2.2%
Nabisco Holdings Corp. .............................................. 7,000 197,750
Northland Cranberries, Inc. ......................................... 12,500 237,500
Philip Morris Cos., Inc. ............................................ 3,300 289,575
Household Products--1.2%
Estee Lauder Cos., Inc. ............................................. 1,000 36,375
Gillette Co. ........................................................ 2,000 103,750
Newell Co. .......................................................... 2,500 65,938
Procter & Gamble Co. ................................................ 2,000 172,750
-----------
1,103,638
-----------
ENERGY--3.9%
Energy Services--3.2%
British Petroleum PLC ADR............................................ 1,500 143,438
ENSCO International, Inc. ........................................... 10,000 168,750
Halliburton Co. ..................................................... 3,500 151,813
Mobil Corp. ......................................................... 1,500 156,562
Sonat Offshore Drilling, Inc. ....................................... 5,000 172,500
Western Atlas, Inc.+................................................. 5,000 239,375
Energy Sources--0.7%
Fluor Corp. ......................................................... 3,500 227,500
-----------
1,259,938
-----------
FINANCE--7.2%
Banks--1.0%
Amsouth Bancorp. .................................................... 2,200 87,175
Chase Manhattan Corp. ............................................... 4,000 243,500
Financial Services--2.9%
American Express Co. ................................................ 4,000 170,000
Donaldson Lufkin & Jenrette, Inc. ................................... 2,000 66,500
Equifax, Inc. ....................................................... 2,800 117,250
Federal National Mortgage Association................................ 500 54,750
First Data Corp. .................................................... 2,500 177,500
Great Western Financial Corp. ....................................... 6,500 165,750
Travelers Group, Inc. ............................................... 3,000 178,500
Insurance--3.3%
Allstate Corp. ...................................................... 3,500 143,500
Cigna Corp. ......................................................... 2,500 275,000
ITT Corp. ........................................................... 2,000 245,250
</TABLE>
---------------------
21
<PAGE> 74
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance (continued)
MGIC Investment Corp. ............................................... 3,500 $ 194,687
Prudential Reinsurance Holdings, Inc. ............................... 10,000 208,750
-----------
2,328,112
-----------
HEALTHCARE--5.6%
Drugs--2.9%
American Home Products Corp. ........................................ 1,500 136,875
Amgen, Inc.+......................................................... 2,500 124,063
Biogen, Inc.+........................................................ 2,500 136,250
Manor Care, Inc. .................................................... 6,000 195,750
Nationwide Health Properties, Inc. .................................. 4,500 178,875
Watson Pharmaceuticals, Inc.+........................................ 3,500 164,937
Health Services--1.2%
Pharmacia & Upjohn, Inc.+............................................ 6,525 234,084
United Healthcare Corp. ............................................. 2,500 157,188
Medical Products--1.5%
Baxter International, Inc. .......................................... 6,500 273,000
Johnson & Johnson Co. ............................................... 2,000 173,250
Medtronic, Inc. ..................................................... 1,000 54,875
-----------
1,829,147
-----------
INDUSTRIAL & COMMERCIAL--3.8%
Aerospace & Military Technology--0.6%
Boeing Co. .......................................................... 2,500 182,188
Business Services--0.4%
Manpower, Inc. ...................................................... 5,000 133,750
Electrical Equipment--1.6%
Adtran, Inc.+........................................................ 2,600 127,400
General Electric Co. ................................................ 4,000 269,000
United Technologies Corp. ........................................... 1,500 140,625
Machinery--1.2%
BJ Services Co.+..................................................... 7,500 184,687
Case Corp. .......................................................... 5,000 208,750
-----------
1,246,400
-----------
INFORMATION & ENTERTAINMENT--2.2%
Broadcasting & Media--1.0%
Tele-Communications TCI Group+....................................... 6,500 120,250
Viacom, Inc.+........................................................ 4,500 217,125
Leisure & Tourism--1.2%
Disney (Walt) Co. ................................................... 3,500 210,438
Red Lion Hotels, Inc. ............................................... 9,000 159,750
-----------
707,563
-----------
INFORMATION TECHNOLOGY--11.2%
Communication Equipment--1.3%
Ericsson (L.M.) Telephone Co. ADR.................................... 6,000 142,500
SBC Communications, Inc. ............................................ 5,000 270,000
Computers & Business Equipment--4.0%
Bay Networks, Inc.+.................................................. 16,000 720,000
Digital Equipment Corp. ............................................. 3,000 176,625
StrataCom, Inc.+..................................................... 2,000 150,000
Sun Microsystems, Inc.+.............................................. 3,000 252,375
</TABLE>
- ---------------------
22
<PAGE> 75
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Electronics--0.7%
Maxim Integrated Products, Inc.+..................................... 3,000 $ 225,000
Software--3.5%
BBN Corp. ........................................................... 6,000 225,000
Cisco Systems, Inc.+................................................. 2,500 210,312
Oracle Systems Corp.+................................................ 6,000 272,250
Visio Corp. ......................................................... 16,000 428,000
Telecommunications--1.7%
Ameritech Corp. ..................................................... 5,000 275,000
AT&T Corp. .......................................................... 4,500 297,000
-----------
3,644,062
-----------
MATERIALS--4.4%
Chemicals--3.9%
Arcadian Corp. ...................................................... 17,000 352,750
Grace (W.R.) & Co. .................................................. 2,000 121,500
IMC Global, Inc. .................................................... 2,000 154,750
Monsanto Co. ........................................................ 2,500 286,250
Potash Corp. Saskatchewan, Inc. ..................................... 2,000 138,250
United Waste Systems, Inc.+.......................................... 5,000 199,375
Forest Products--0.5%
Kimberly-Clark Corp. ................................................ 2,100 161,437
-----------
1,414,312
-----------
REAL ESTATE--1.2%
Real Estate Investment Trusts--1.2%
Equity Residential Properties Trust.................................. 5,500 170,500
Patriot American Hospitality, Inc.+.................................. 8,500 201,875
-----------
372,375
-----------
UTILITIES--5.1%
Electric Utilities--3.4%
Allegheny Power Systems, Inc. ....................................... 5,000 138,750
FPL Group, Inc.+..................................................... 5,000 216,875
Pinnacle West Capital Corp. ......................................... 4,500 122,625
Texas Utilities Co. ................................................. 7,000 269,500
Unicom Corp. ........................................................ 11,000 352,000
Telephone--1.7%
MCI Communications Corp. ............................................ 10,000 267,500
US West, Inc. ....................................................... 9,000 281,250
-----------
1,648,500
-----------
TOTAL COMMON STOCK (cost $14,758,167)................................ 16,270,672
-----------
<CAPTION>
PREFERRED STOCK--0.4%
------------------------------------------------------------------------------------------------
<S> <C> <C>
Forest Products--0.4%
Alco Standard Corp. (cost $116,063).................................. 1,500 124,875
-----------
<CAPTION>
PRINCIPAL
BONDS & NOTES--37.0% AMOUNT
------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY--3.0%
Apparel & Textiles--2.2%
Westpoint Stevens, Inc. 9.38% 2005................................... $ 700,000 703,500
</TABLE>
---------------------
23
<PAGE> 76
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
<S> <C> <C>
------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY (continued)
Retail--0.8%
Federated Department Stores, Inc. 5.00% 2003......................... $ 250,000 $ 261,250
-----------
964,750
-----------
CONSUMER STAPLES--0.8%
Food, Beverage & Tobacco--0.8%
Boston Chicken, Inc. 4.50% 2004...................................... 200,000 255,000
-----------
FINANCE--3.6%
Financial Services--3.6%
CS First Boston Mortgage Securities Corp. CMO 7.18% 2027(1).......... 300,000 301,781
Resolution Trust Corp. CMO 6.02% 2027................................ 236,702 235,000
Sandoz Capital BVI Ltd. 2.00% 2002*.................................. 350,000 323,969
Structured Asset Securities Corp. 7.00% 2026(1)...................... 300,000 301,313
-----------
1,162,063
-----------
INDUSTRIAL & COMMERCIAL--1.5%
Business Services--0.6%
ADT Operations, Inc. zero coupon 2010................................ 400,000 188,000
Transportation--0.9%
Delta Air Lines, Inc. 3.23% 2003..................................... 300,000 303,750
-----------
491,750
-----------
MUNICIPAL BONDS--1.4%
Municipal Bonds--1.4%
Florida State Board of Education Capital Outlay 5.25% 2023........... 50,000 48,376
Intermountain Power Agency Utah 5.00% 2023........................... 50,000 45,742
Kern County California Pension Obligation 7.26% 2014................. 50,000 50,555
Long Beach California Pension Obligation 6.87% 2006.................. 30,000 30,659
Miami Beach Florida Special Obligation 8.60% 2021.................... 100,000 112,633
New York State Power Authority Revenue 5.25% 2018.................... 25,000 24,267
Northern California Power Agency Public Power Revenue 5.50% 2024..... 50,000 49,219
San Bernardino County California Financing Authority 6.87% 2008...... 15,000 15,278
San Bernardino County California Financing Authority 6.94% 2009...... 35,000 35,583
South Carolina State Public Service Authority 5.00% 2025............. 40,000 37,167
South Carolina State Public Service Authority 5.13% 2021............. 20,000 18,625
-----------
468,104
-----------
NON-U.S. GOVERNMENT OBLIGATIONS--1.3%
Foreign Government--1.3%
Government of Poland 2.75% 2024...................................... 500,000 219,375
Republic of the Philippines 5.75% 2017............................... 280,000 207,900
-----------
427,275
-----------
U.S. GOVERNMENT & AGENCIES--25.4%
U.S. Government & Agencies--25.4%
Government National Mortgage Association 6.50% 2023.................. 293,609 288,286
United States Treasury Bonds 7.63% 2025.............................. 150,000 178,430
United States Treasury Notes 5.13% 1998.............................. 600,000 596,436
United States Treasury Notes 5.75% 2000.............................. 350,000 352,954
United States Treasury Notes 6.25% 2000.............................. 350,000 359,790
United States Treasury Notes 6.50% 2005.............................. 1,730,000 1,820,012
United States Treasury Notes 6.75% 1997.............................. 650,000 660,458
United States Treasury Notes 6.75% 2000.............................. 1,200,000 1,256,064
United States Treasury Notes 6.88% 2000.............................. 450,000 473,134
United States Treasury Notes 7.13% 2000.............................. 150,000 158,859
United States Treasury Notes 7.25% 1996.............................. 250,000 254,297
United States Treasury Notes 7.50% 1996.............................. 200,000 204,344
</TABLE>
- ---------------------
24
<PAGE> 77
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
<S> <C> <C>
------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
U.S. GOVERNMENT & AGENCIES (continued)
United States Treasury Notes 7.50% 2005.............................. $ 850,000 $ 952,000
United States Treasury Notes 7.88% 2004.............................. 600,000 686,250
-----------
8,241,314
-----------
TOTAL BONDS & NOTES (cost $11,568,301)............................... 12,010,256
-----------
TOTAL INVESTMENT SECURITIES (cost $26,442,531)....................... 28,405,803
-----------
SHORT-TERM SECURITIES--19.2%
------------------------------------------------------------------------------------------------
CORPORATE SHORT-TERM NOTES--16.9%
Albertson's, Inc. 5.70% due 12/14/95................................. 500,000 498,971
Campbell Soup Co. 5.69% due 12/29/95................................. 590,000 587,389
du Pont (E.I.) de Nemours & Co. 5.71% due 12/05/95................... 490,000 489,689
Goldman Sachs Group L.P. 5.73% due 12/14/95.......................... 500,000 498,965
Heinz (H.J.) Co. 5.72% due 12/01/95.................................. 110,000 110,000
Merrill Lynch & Co. 5.78% due 12/11/95............................... 455,000 454,270
Minnesota Mining & Manufacturing Co. 5.72% due 12/06/95.............. 600,000 599,523
Philip Morris Cos., Inc. 5.73% due 12/04/95.......................... 170,000 169,919
Shell Oil Co. 5.66% due 12/15/95..................................... 510,000 508,877
TDK USA Corp. 5.72% due 12/18/95..................................... 625,000 623,312
TDK USA Corp. 5.74% due 1/17/96...................................... 375,000 372,190
Wal-Mart Stores, Inc. 5.70% due 12/01/95............................. 570,000 570,000
-----------
5,483,105
-----------
FEDERAL AGENCY OBLIGATIONS--2.3%
Federal Home Loan Mortgage Discount Notes 5.70% due 12/19/95......... 760,000 757,834
-----------
TOTAL SHORT-TERM SECURITIES (cost $6,240,939)........................ 6,240,939
-----------
TOTAL INVESTMENTS--
(cost $32,683,470) 106.8% 34,646,742
Liabilities in excess of other assets-- (6.8) (2,218,207)
------ -----------
NET ASSETS-- 100.0% $32,428,535
====== ===========
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
(1) Fair valued security; see Note 2
ADR--American Depositary Receipt
CMO--Collateralized Mortgage Obligation
See Notes to Financial Statements
---------------------
25
<PAGE> 78
- ---------------------
SUNAMERICA SERIES TRUST
ASSET ALLOCATION PORTFOLIO INVESTMENT PORTFOLIO--NOVEMBER 30, 1995
<TABLE>
<CAPTION>
COMMON STOCK--61.0% SHARES VALUE
<S> <C> <C>
---------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY--8.5%
Apparel & Textiles--0.6%
Melville Corp. ...................................................... 38,700 $ 1,204,538
Automotive--3.5%
Ford Motor Co. ...................................................... 121,400 3,429,550
General Motors Corp. ................................................ 19,800 960,300
Goodyear Tire & Rubber Co. .......................................... 60,400 2,559,450
Housing--1.1%
Centex Corp. ........................................................ 30,600 1,005,975
Lennar Corp. ........................................................ 58,100 1,285,462
Retail--3.3%
Fleming Cos., Inc. .................................................. 95,800 2,215,375
Penney (J.C.), Inc. ................................................. 48,900 2,292,187
Sears, Roebuck & Co. ................................................ 52,100 2,051,438
------------
17,004,275
------------
CONSUMER STAPLES--8.3%
Food, Beverage & Tobacco--7.7%
Anheuser-Busch Cos., Inc. ........................................... 43,600 2,888,500
Chiquita Brands International, Inc. ................................. 204,800 2,739,200
Philip Morris Cos., Inc. ............................................ 44,900 3,939,975
RJR Nabisco Holdings Corp. .......................................... 112,240 3,268,990
Supervalu, Inc. ..................................................... 78,200 2,521,950
Household Products--0.6%
Sunbeam Corp., Inc. ................................................. 80,800 1,313,000
------------
16,671,615
------------
ENERGY--7.2%
Energy Services--5.3%
Ashland, Inc. ....................................................... 85,500 2,981,812
CMS Energy Corp. .................................................... 43,500 1,185,375
Mobil Corp. ......................................................... 11,800 1,231,625
Texaco, Inc. ........................................................ 35,100 2,597,400
Tosco Corp. ......................................................... 70,800 2,699,250
Energy Sources--1.9%
Atlantic Richfield Co. .............................................. 12,600 1,365,525
Royal Dutch Petroleum Co. ADR........................................ 19,000 2,439,125
------------
14,500,112
------------
FINANCE--10.8%
Banks--4.2%
BankAmerica Corp. ................................................... 32,100 2,042,362
NationsBank Corp. ................................................... 56,000 3,997,000
Shawmut National Corp. .............................................. 35,400 1,327,500
Standard Federal Bancorp. ........................................... 25,500 978,563
Financial Services--1.8%
Greenpoint Financial Corp. .......................................... 55,900 1,467,375
Lehman Brothers Holdings, Inc. ...................................... 36,800 832,600
Travelers Group, Inc. ............................................... 23,300 1,386,350
</TABLE>
- ---------------------
26
<PAGE> 79
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance--4.8%
Allstate Corp. ...................................................... 32,300 $ 1,324,300
Cigna Corp. ......................................................... 10,700 1,177,000
Integon Corp. ....................................................... 15,100 256,700
Lincoln National Corp. .............................................. 54,100 2,529,175
Partner Residential Holding Corp. ................................... 81,000 2,146,500
Reliastar Financial Corp. ........................................... 44,200 1,911,650
USLIFE Corp. ........................................................ 6,750 194,906
------------
21,571,981
------------
HEALTHCARE--2.3%
Health Services--2.3%
Columbia/HCA Healthcare Corp. ....................................... 28,900 1,491,963
Tenet Healthcare Corp. .............................................. 169,500 3,029,812
------------
4,521,775
------------
INDUSTRIAL & COMMERCIAL--9.9%
Aerospace & Military Technology--6.3%
AMR Corp.+........................................................... 8,000 613,000
Lear Seating Corp. .................................................. 60,000 1,680,000
Lockheed Martin Corp. ............................................... 31,800 2,333,325
Loral Corp. ......................................................... 52,200 1,768,275
McDonnell Douglas Corp. ............................................. 44,800 3,992,800
Northrop Grumman Corp. .............................................. 35,800 2,201,700
Machinery--0.8%
Outboard Marine Corp. ............................................... 77,800 1,594,900
Manufacturing--1.3%
Owens Illinois, Inc. ................................................ 195,200 2,537,600
Transportation--1.5%
Consolidated Freightways, Inc.+...................................... 113,900 2,989,875
------------
19,711,475
------------
INFORMATION & ENTERTAINMENT--2.6%
Broadcasting & Media--1.1%
Tele-Communications TCI Group+....................................... 114,300 2,114,550
Leisure & Tourism--1.5%
Brunswick Corp. ..................................................... 140,200 2,996,775
------------
5,111,325
------------
INFORMATION TECHNOLOGY--2.8%
Computers & Business Equipment--2.0%
Apple Computer, Inc. ................................................ 23,600 899,750
COMPAQ Computer Corp.+............................................... 37,000 1,831,500
Storage Technology Corp. ............................................ 49,800 1,232,550
Telecommunications--0.8%
Valassis Communications, Inc. ....................................... 106,900 1,643,588
------------
5,607,388
------------
MATERIALS--6.5%
Chemicals--0.9%
Geon Co. ............................................................ 72,200 1,786,950
Forest Products--5.3%
Champion International Corp. ........................................ 36,900 1,738,913
Georgia-Pacific Corp. ............................................... 54,200 4,214,050
Stone Container Corp.+............................................... 229,500 3,585,937
Universal Corp. ..................................................... 46,800 1,111,500
</TABLE>
---------------------
27
<PAGE> 80
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Metals & Minerals--0.3%
Quanex Corp. ........................................................ 28,300 $ 555,387
------------
12,992,737
------------
UTILITIES--2.1%
Electric Utilities--2.1%
Entergy Corp. ....................................................... 63,800 1,778,425
Long Island Lighting Co. ............................................ 145,100 2,484,838
------------
4,263,263
------------
TOTAL COMMON STOCK (cost $106,062,453)............................... 121,955,946
------------
<CAPTION>
PRINCIPAL
BONDS & NOTES--32.8% AMOUNT
---------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY--0.4%
Housing--0.4%
News America Holdings, Inc. 7.50% 2000............................... $ 600,000 627,708
News America Holdings, Inc. 9.13% 1999............................... 250,000 275,437
------------
903,145
------------
CONSUMER STAPLES--0.3%
Food, Beverage & Tobacco--0.3%
RJR Nabisco, Inc. 8.00% 2001......................................... 280,000 284,486
RJR Nabisco, Inc. 8.63% 2002......................................... 300,000 309,513
------------
593,999
------------
ENERGY--1.1%
Energy Services--1.1%
Arkla, Inc. 9.20% 1997............................................... 250,000 261,883
Arkla, Inc. 9.88% 1997............................................... 550,000 573,963
National Power Corp. 7.63% 2000...................................... 180,000 177,750
Oryx Energy Co. 9.30% 1996........................................... 400,000 403,564
Oryx Energy Co. 9.50% 1999........................................... 350,000 374,815
Tosco Corp. 7.00% 2000............................................... 400,000 396,000
------------
2,187,975
------------
FINANCE--9.6%
Banks--3.5%
Auburn Hills Trust 12.00% 2020(1).................................... 325,000 496,327
Banco de Comercio Exterior 8.63% 2000*............................... 50,000 50,731
Banco Nacional de Comercio Exterior SNC 11.25% 1996(1)(2)............ 360,000 360,000
BankAmerica Corp. 9.75% 2000......................................... 400,000 453,312
BanPonce Corp. 5.17% 1996............................................ 400,000 397,636
Capital One Bank 7.48% 1996.......................................... 1,350,000 1,352,011
Continental Bank NA Chicago 11.25% 2001.............................. 300,000 336,393
Continental Bank NA Chicago 12.50% 2001.............................. 450,000 576,306
Corporacion Andina de Fomento 7.25% 1998............................. 510,000 507,450
Corporacion Andina de Fomento 7.38% 2000............................. 140,000 142,118
First USA Bank 6.88% 1996............................................ 350,000 352,611
First USA Bank 5.05% 1995............................................ 400,000 409,280
Security Pacific Corp. 11.50% 2000................................... 600,000 735,030
Signet Banking Corp. 9.63% 1999...................................... 775,000 852,640
Financial Services--6.1%
App International Finance Co. BV 10.25% 2000......................... 60,000 59,100
Case Equipment Loan Trust 7.30% 2002................................. 751,935 767,664
Chrysler Financial Corp. 5.98% 1997(2)............................... 300,000 300,332
Chrysler Financial Corp. 10.34% 1996(1).............................. 400,000 407,272
</TABLE>
- ---------------------
28
<PAGE> 81
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
<S> <C> <C>
---------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Countrywide Funding Corp. 8.43% 1999................................. $ 450,000 $ 486,027
Financiera Energet 6.63% 1996........................................ 1,110,000 1,105,838
First USA, Inc. 5.05% 1995........................................... 400,000 399,708
Ford Capital BV 9.38% 1998........................................... 225,000 240,667
Ford Capital BV 9.50% 2001........................................... 800,000 920,424
Ford Credit Auto Loan Master Trust 6.50% 2002........................ 550,000 561,858
Ford Credit Grantor Trust 7.30% 1999................................. 179,686 182,662
General Motors Acceptance Corp. 6.30% 1999........................... 319,693 320,892
General Motors Acceptance Corp. 7.15% 2000........................... 615,604 625,799
General Motors Acceptance Corp. 7.50% 1997........................... 200,000 206,034
General Motors Acceptance Corp. 7.63% 1998........................... 585,000 606,674
Honda Auto Receivables Grantor Trust 6.20% 2000...................... 332,512 334,175
Household Finance Corp. 7.25% 1994................................... 94,044 94,984
MBNA Corp. 8.25% 1998................................................ 95,833 95,623
Premier Auto Trust 4.90% 1998........................................ 317,641 315,059
Premier Auto Trust 7.85% 1998........................................ 1,040,000 1,066,000
Resolution Funding Corp. zero coupon 2020............................ 1,600,000 315,936
Resolution Funding Corp. zero coupon 2021............................ 1,580,000 308,416
Sears Credit Account Master Trust 8.10% 2004......................... 700,000 753,809
Standard Credit Card Master Trust 6.25% 1998......................... 260,000 261,056
Standard Credit Card Master Trust 7.85% 2002......................... 600,000 640,308
Standard Credit Card Master Trust 8.25% 2003......................... 710,000 784,323
------------
19,182,485
------------
INDUSTRIAL & COMMERCIAL--0.5%
Aerospace & Military Technology--0.1%
British Aerospace PLC 7.55% 1997*.................................... 150,000 152,566
Multi-Industry--0.4%
Tenneco, Inc. 10.00% 1998............................................ 800,000 877,672
------------
1,030,238
------------
INFORMATION & ENTERTAINMENT--1.3%
Broadcasting & Media--1.1%
Lenfest Communications, Inc. 8.38% 2005.............................. 255,000 254,363
Tele-Communications, Inc. 7.00% 1997................................. 300,000 304,056
Tele-Communications, Inc. 9.65% 2003................................. 375,000 422,513
Time Warner, Inc. 7.45% 1998......................................... 1,145,000 1,173,556
Leisure & Tourism--0.2%
Blockbuster Entertainment Corp. 6.63% 1998........................... 365,000 367,573
------------
2,522,061
------------
INFORMATION TECHNOLOGY--1.1%
Communication Equipment--0.5%
Cablevision Industries Corp. 10.75% 2002............................. 980,000 1,060,850
Computers & Business Equipment--0.6%
Comdisco, Inc. 6.08% 1995............................................ 350,000 350,000
Comdisco, Inc. 9.75% 1997............................................ 700,000 728,378
------------
2,139,228
------------
MATERIALS--0.1%
Forest Products--0.1%
PT Indah Kiat Pulp & Paper 8.88% 2000................................ 170,000 160,650
------------
</TABLE>
---------------------
29
<PAGE> 82
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
<S> <C> <C>
---------------------------------------------------------------------------------------------------
<CAPTION>
NON-U.S. GOVERNMENT OBLIGATIONS--1.3%
Foreign Government--1.3%
Government Backed Trusts 9.40% 1996.................................. $ 119,595 $ 122,125
Petroleo Brasileiro SA 8.75% 1996(2)................................. 800,000 799,456
Quebec Province Canada 13.25% 2014................................... 625,000 792,812
Republic of Argentina Bote II 5.90% 1997(1).......................... 1,430,000 554,840
Republic of Columbia 9.25% 2000(2)................................... 370,000 373,049
------------
2,642,282
------------
U.S. GOVERNMENT & AGENCIES--16.9%
U.S. Government & Agencies--16.9%
Federal Home Loan Mortgage Corp. 6.50% 2018.......................... 600,000 598,872
Federal Home Loan Mortgage Corp. 7.00% TBA........................... 3,500,000 3,501,085
Federal Home Loan Mortgage Corp. 7.50% TBA........................... 3,000,000 3,053,430
Federal Home Loan Mortgage Corp. 8.20% 1998.......................... 310,000 318,962
Federal National Mortgage Association 7.00% TBA...................... 2,000,000 2,023,120
Federal National Mortgage Association 7.50% TBA...................... 1,000,000 1,023,120
Federal National Mortgage Association 7.70% 2004..................... 440,000 465,023
Federal National Mortgage Association 8.79% 2002..................... 180,000 180,900
Government National Mortgage Association 7.50% TBA................... 2,000,000 2,041,240
Government National Mortgage Association 8.00% TBA................... 5,000,000 5,173,400
Government National Mortgage Association 9.00% 2016.................. 516,184 548,363
Government National Mortgage Association 9.00% 2016.................. 583,076 619,425
Government National Mortgage Association 9.00% 2016.................. 481,882 511,923
Government National Mortgage Association 9.00% 2017.................. 342,014 360,504
Government National Mortgage Association 9.50% TBA................... 1,000,000 1,070,000
United States Treasury Bonds 7.88% 2021@............................. 280,000 336,437
United States Treasury Bonds 8.75% 2020.............................. 520,000 680,794
United States Treasury Bonds 11.13% 2003............................. 510,000 678,540
United States Treasury Bonds 13.75% 2004............................. 200,000 307,500
United States Treasury Bonds Strip zero coupon 2020.................. 3,310,000 681,529
United States Treasury Bonds Strip zero coupon 2004.................. 9,580,000 5,691,191
United States Treasury Bonds Strip zero coupon 2018.................. 50,000 11,837
United States Treasury Bonds Strip zero coupon 2021.................. 40,000 7,687
United States Treasury Notes 7.25% 2004.............................. 870,000 956,182
United States Treasury Notes 7.38% 1997.............................. 850,000 880,549
United States Treasury Notes 7.50% 1999.............................. 1,960,000 2,094,436
------------
33,816,049
------------
UTILITIES--0.2%
Electric Utilities--0.2%
Central Maine Power Co. 7.45% 1999................................... 365,000 380,126
------------
TOTAL BONDS & NOTES (cost $64,132,258)............................... 65,558,238
------------
TOTAL INVESTMENT SECURITIES (cost $170,194,711)...................... 187,514,184
------------
</TABLE>
- ---------------------
30
<PAGE> 83
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES--0.8% AMOUNT VALUE
<S> <C> <C>
---------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
FOREIGN SHORT-TERM NOTES--0.8%
Banco Nacional de Comercio Exterior SNC 9.94% due 5/13/96............ $ 200,000 $ 191,736
Mexican Tesobonos 7.70% due 12/21/95................................. 100,000 99,575
Mexican Tesobonos 7.75% due 12/21/95................................. 400,000 398,300
Mexican Tesobonos 7.75% due 1/18/96.................................. 100,000 98,986
Mexican Tesobonos 7.75% due 2/08/96.................................. 140,000 139,580
Mexican Tesobonos 8.00% due 1/18/96.................................. 100,000 98,950
Petroleo Brasileiro 8.38% due 12/15/95............................... 180,000 179,432
Republic of Argentina 9.50% due 12/04/95............................. 210,000 210,000
Republic of Brazil 10.25% due 12/29/95............................... 140,000 138,906
------------
TOTAL SHORT-TERM SECURITIES (cost $1,552,233)........................ 1,555,465
------------
<CAPTION>
REPURCHASE AGREEMENT--12.3%
---------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT--12.3%
Agreement with State Street Bank & Trust Co., bearing interest of
5.75% dated 11/30/95, to be repurchased 12/01/95 in the amount of
$24,554,921 and collateralized by $22,520,000 U.S. Treasury Notes
7.75% due 12/31/99@ (cost $24,551,000)............................. 24,551,000 24,551,000
------------
TOTAL INVESTMENTS--
(cost $196,297,944) 106.9% 213,620,649
Liabilities in excess of other assets-- (6.9) (13,784,259)
------ ------------
NET ASSETS-- 100.0% $199,836,390
====== ==============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
(1) Variable rate security; rate as of November 30, 1995
(2) Fair valued security; see Note 2
ADR--American Depositary Receipt
TBA-- Securities purchased on a forward commitment basis with an
approximate principal amount and no definitive maturity date.
The actual principal amount and maturity date will be
determined upon settlement date.
@ The security or a portion thereof represents collateral for the
following open futures contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
<C> <S> <C> <C> <C>
----------------------------------------------------------------------------------------------------------
<CAPTION>
UNREALIZED
NUMBER OF EXPIRATION VALUE AS OF APPRECIATION/
CONTRACTS DESCRIPTION DATE NOVEMBER 30, 1995 (DEPRECIATION)
-----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
4 Long 90 Day Euro Dollar.................... September 1997 $ 944,700 $ 7,670
4 Long 90 Day Euro Dollar.................... December 1997 943,200 7,170
43 Long U.S. Long Bond........................ December 1995 5,134,469 80,274
2 Long U.S. Long Bond........................ March 1996 238,313 (328)
10 Long U.S. 2 Year Note...................... March 1996 2,090,938 5,393
8 Long U.S. 5 Year Note...................... March 1996 877,000 6,689
14 Short U.S. 10 Year Note..................... March 1996 1,587,250 (11,918)
--------------
Net Unrealized Appreciation................................................. $ 94,950
=============
</TABLE>
See Notes to Financial Statements
---------------------
31
<PAGE> 84
- ---------------------
SUNAMERICA SERIES TRUST
GROWTH-INCOME PORTFOLIO INVESTMENT PORTFOLIO--NOVEMBER 30, 1995
<TABLE>
<CAPTION>
COMMON STOCK--99.3% SHARES VALUE
<S> <C> <C>
---------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY--6.0%
Automotive--3.2%
Goodyear Tire & Rubber Co. .......................................... 82,000 $ 3,474,750
Magna International, Inc. ADR........................................ 45,000 1,957,500
Retail--2.8%
Federated Department Stores, Inc.+................................... 79,700 2,321,263
Lowe's Cos., Inc. ................................................... 74,700 2,353,050
Pep Boys-Manny, Moe & Jack........................................... 3,300 87,450
------------
10,194,013
------------
CONSUMER STAPLES--13.8%
Food, Beverage & Tobacco--10.9%
Campbell Soup Co. ................................................... 54,000 3,017,250
McDonald's Corp. .................................................... 60,000 2,677,500
PepsiCo, Inc. ....................................................... 94,000 5,193,500
Philip Morris Cos., Inc. ............................................ 70,000 6,142,500
Wendy's International, Inc. ......................................... 83,000 1,711,875
Household Products--2.9%
Colgate-Palmolive Co. ............................................... 24,000 1,758,000
Gillette Co. ........................................................ 61,700 3,200,687
------------
23,701,312
------------
ENERGY--5.9%
Energy Services--1.2%
Western Atlas, Inc.+................................................. 42,000 2,010,750
Energy Sources--4.7%
Atlantic Richfield Co. .............................................. 40,200 4,356,675
Enron Corp. ......................................................... 98,000 3,675,000
------------
10,042,425
------------
FINANCE--17.2%
Banks--6.7%
BankAmerica Corp. ................................................... 38,000 2,417,750
Fifth Third Bancorp.................................................. 22,000 1,608,750
First Chicago Corp. ................................................. 49,200 3,419,400
NationsBank Corp. ................................................... 37,500 2,676,563
Republic New York Corp. ............................................. 22,000 1,386,000
Financial Services--7.0%
Dean Witter, Discover & Co. ......................................... 54,000 2,754,000
First USA, Inc. ..................................................... 18,000 825,750
MBNA Corp. .......................................................... 35,000 1,413,125
Merrill Lynch & Co., Inc. ........................................... 48,000 2,670,000
Travelers Group, Inc. ............................................... 73,066 4,347,427
Insurance--3.5%
American International Group, Inc. .................................. 28,575 2,564,606
ITT Corp. ........................................................... 15,600 1,912,950
PMI Group, Inc. ..................................................... 30,000 1,425,000
------------
29,421,321
------------
</TABLE>
- ---------------------
32
<PAGE> 85
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE--11.5%
Drugs--4.2%
Lilly (Eli) & Co. ................................................... 44,500 $ 4,427,750
Schering-Plough Corp. ............................................... 48,000 2,754,000
Health Services--7.3%
Columbia/HCA Healthcare Corp. ....................................... 76,700 3,959,637
Healthsource, Inc.+.................................................. 21,500 1,343,750
U.S. HealthCare, Inc. ............................................... 80,000 3,640,000
United Healthcare Corp. ............................................. 40,000 2,515,000
Value Health, Inc.+.................................................. 39,000 979,875
------------
19,620,012
------------
INDUSTRIAL & COMMERCIAL--8.7%
Aerospace & Military Technology--2.9%
AlliedSignal, Inc. .................................................. 51,000 2,409,750
Boeing Co. .......................................................... 30,300 2,208,113
Coltec Industries, Inc.+............................................. 30,000 330,000
Business Services--1.5%
WMX Technologies, Inc. .............................................. 87,000 2,566,500
Electrical Equipment--2.4%
General Electric Co. ................................................ 61,200 4,115,700
Machinery--0.5%
Applied Materials, Inc.+............................................. 11,800 573,775
Centocor, Inc.+...................................................... 25,200 352,800
Transportation--1.4%
Conrail, Inc. ....................................................... 17,000 1,187,875
Illinois Central Corp. .............................................. 30,000 1,215,000
------------
14,959,513
------------
INFORMATION & ENTERTAINMENT--3.3%
Broadcasting & Media--1.2%
Tele-Communications Liberty Media Group+............................. 21,250 595,000
Tele-Communications TCI Group+....................................... 85,000 1,572,500
Leisure & Tourism--2.1%
Carnival Corp. ...................................................... 75,000 1,950,000
Disney (Walt) Co. ................................................... 26,600 1,599,325
------------
5,716,825
------------
INFORMATION TECHNOLOGY--13.4%
Communication Equipment--2.8%
AirTouch Communications, Inc.+....................................... 130,000 3,786,250
Motorola, Inc. ...................................................... 17,000 1,041,250
Computers & Business Equipment--3.5%
COMPAQ Computer Corp.+............................................... 73,400 3,633,300
International Business Machines Corp. ............................... 23,600 2,280,350
Electronics--7.1%
General Instrument Corp.+............................................ 67,500 1,729,687
General Motors Corp., Class E........................................ 50,000 2,525,000
Intel Corp. ......................................................... 78,000 4,748,250
National Semiconductor Corp.+........................................ 150,000 3,206,250
------------
22,950,337
------------
</TABLE>
---------------------
33
<PAGE> 86
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS--8.4%
Chemicals--7.0%
Eastman Kodak Co. ................................................... 30,000 $ 2,040,000
Monsanto Co. ........................................................ 32,000 3,664,000
Morton International, Inc. .......................................... 36,000 1,246,500
Rohm & Haas Co. ..................................................... 32,000 1,928,000
Union Carbide Corp. ................................................. 79,000 3,130,375
Forest Products--1.2%
Alco Standard Corp. ................................................. 46,000 2,001,000
Metals & Minerals--0.2%
Alumax, Inc.+........................................................ 11,500 382,375
------------
14,392,250
------------
UTILITIES--11.1%
Electric Utilities--5.1%
FPL Group, Inc.+..................................................... 100,000 4,337,500
Houston Industries, Inc. ............................................ 94,500 4,323,375
Telephone--6.0%
AT&T Corp. .......................................................... 125,000 8,250,000
Century Telephone Enterprises, Inc. ................................. 67,600 2,112,500
------------
19,023,375
------------
TOTAL INVESTMENT SECURITIES (cost $145,643,214)...................... 170,021,383
------------
PRINCIPAL
SHORT-TERM SECURITIES--4.4% AMOUNT
--------------------------------------------------------------------------------------------------
TIME DEPOSIT--4.4%
Cayman Island Time Deposit with State Street Bank & Trust Co.
5.50% due 12/01/95 (cost $7,513,000)............................... $7,513,000 7,513,000
------------
TOTAL INVESTMENTS--
(cost $153,156,214) 103.7% 177,534,383
Liabilities in excess of other assets-- (3.7) (6,253,310)
----- ------------
NET ASSETS-- 100.0% $171,281,073
===== ============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR--American Depositary Receipt
See Notes to Financial Statements
- ---------------------
34
<PAGE> 87
- ---------------------
SUNAMERICA SERIES TRUST
ALLIANCE GROWTH PORTFOLIO INVESTMENT PORTFOLIO--NOVEMBER 30, 1995
<TABLE>
<CAPTION>
COMMON STOCK--90.8% SHARES VALUE
<S> <C> <C>
---------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY--1.0%
Retail--1.0%
Home Depot, Inc...................................................... 39,000 $ 1,730,625
------------
CONSUMER STAPLES--11.6%
Food, Beverage & Tobacco--9.4%
Coca-Cola Co. ....................................................... 25,100 1,901,325
McDonald's Corp. .................................................... 107,900 4,815,038
PepsiCo, Inc. ....................................................... 34,000 1,878,500
Philip Morris Cos., Inc. ............................................ 81,300 7,134,075
Household Products--2.2%
Gillette Co. ........................................................ 72,800 3,776,500
------------
19,505,438
------------
FINANCE--22.2%
Banks--11.2%
Citicorp............................................................. 52,400 3,707,300
First Bank Systems, Inc. ............................................ 37,800 1,951,425
First Chicago Corp. ................................................. 61,100 4,246,450
First Interstate Bancorp............................................. 11,500 1,541,000
NationsBank Corp. ................................................... 44,500 3,176,188
Norwest Corp. ....................................................... 124,620 4,112,460
Financial Services--9.2%
Beneficial Corp. .................................................... 27,900 1,415,925
Dean Witter, Discover & Co. ......................................... 27,800 1,417,800
Federal National Mortgage Association................................ 50,100 5,485,950
Household International, Inc. ....................................... 32,900 2,056,250
MBNA Corp. .......................................................... 12,600 508,725
Merrill Lynch & Co., Inc. ........................................... 81,600 4,539,000
Insurance--1.8%
ITT Corp. ........................................................... 24,900 3,053,363
------------
37,211,836
------------
HEALTHCARE--5.9%
Drugs--3.8%
Amgen, Inc.+......................................................... 55,200 2,739,300
Merck & Co., Inc. ................................................... 33,200 2,054,250
Schering-Plough Corp. ............................................... 26,500 1,520,437
Health Services--0.9%
United Healthcare Corp. ............................................. 23,800 1,496,425
Medical Products--1.2%
Abbott Laboratories.................................................. 19,700 800,313
Guidant Corp. ....................................................... 34,600 1,293,175
------------
9,903,900
------------
INDUSTRIAL & COMMERCIAL--6.7%
Business Services--1.2%
XTRA Corp. .......................................................... 48,750 2,084,063
Machinery--3.6%
Applied Materials, Inc.+............................................. 122,300 5,946,837
</TABLE>
---------------------
35
<PAGE> 88
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Transportation--1.9%
UAL Corp. ........................................................... 15,300 $ 3,201,525
------------
11,232,425
------------
INFORMATION & ENTERTAINMENT--11.1%
Broadcasting & Media--4.0%
Capital Cities/ABC, Inc. ............................................ 10,400 1,285,700
Tele-Communications Liberty Media Group+............................. 49,725 1,392,300
Tele-Communications TCI Group+....................................... 217,100 4,016,350
Leisure & Tourism--7.1%
Disney (Walt) Co. ................................................... 98,600 5,928,325
KLM Royal Dutch Airlines ADR......................................... 49,500 1,707,750
Northwest Airlines Corp.+............................................ 86,500 4,357,438
------------
18,687,863
------------
INFORMATION TECHNOLOGY--28.5%
Communication Equipment--13.4%
AirTouch Communications, Inc.+....................................... 195,500 5,693,937
Cox Communications, Inc.+............................................ 136,300 2,726,000
DSC Communications Corp.+............................................ 47,600 1,886,150
Ericsson (L.M.) Telephone Co. ADR.................................... 83,000 1,971,250
Motorola, Inc. ...................................................... 53,100 3,252,375
Nokia Corp. ADR...................................................... 127,900 6,938,575
Computers & Business Equipment--4.5%
COMPAQ Computer Corp.+............................................... 37,500 1,856,250
Hewlett-Packard Co. ................................................. 68,000 5,635,500
Electronics--2.1%
Intel Corp. ......................................................... 59,200 3,603,800
Software--8.5%
Cisco Systems, Inc.+................................................. 57,100 4,803,537
Microsoft Corp.+..................................................... 64,500 5,619,562
Oracle Systems Corp.+................................................ 84,400 3,829,650
------------
47,816,586
------------
REAL ESTATE--1.4%
Real Estate Companies--1.4%
Green Tree Financial Corp. .......................................... 82,800 2,339,100
------------
UTILITIES--2.4%
Telephone--2.4%
AT&T Corp. .......................................................... 60,500 3,993,000
------------
TOTAL COMMON STOCK (cost $135,818,446)............................... 152,420,773
------------
</TABLE>
- ---------------------
36
<PAGE> 89
<TABLE>
<CAPTION>
WARRANTS--4.3%+ SHARES VALUE
<S> <C> <C>
---------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
INFORMATION TECHNOLOGY--4.3%
Electronics--4.3%
Intel Corp. (cost $3,451,125)........................................ 231,000 $ 7,189,875
------------
TOTAL INVESTMENT SECURITIES (cost $139,269,571)...................... 159,610,648
------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES--4.8% AMOUNT
--------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT--4.7%
Cayman Island Time Deposit with State Street Bank & Trust Co.
5.50% due 12/01/95@................................................ $7,916,000 7,916,000
------------
U.S. GOVERNMENT--0.1%
United States Treasury Bills 5.18% due 12/21/95@..................... 100,000 99,716
------------
TOTAL SHORT-TERM SECURITIES (cost $8,015,713)........................ 8,015,716
------------
TOTAL INVESTMENTS--
(cost $147,285,284) 99.9% 167,626,364
Other assets less liabilities-- 0.1 243,363
----- ------------
NET ASSETS-- 100.0% $167,869,727
===== ============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR--American Depositary Receipt
@ The security or a portion thereof represents collateral for the
following open futures contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
<C> <S> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------
<CAPTION>
NUMBER OF EXPIRATION VALUE AS OF UNREALIZED
CONTRACTS DESCRIPTION DATE NOVEMBER 30, 1995 APPRECIATION
-------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
9 Long Standard & Poor's 500 Index............. December 1995 $2,732,625 $ 96,750
=========
</TABLE>
See Notes to Financial Statements
---------------------
37
<PAGE> 90
- ---------------------
SUNAMERICA SERIES TRUST
GROWTH/PHOENIX INVESTMENT
COUNSEL PORTFOLIO INVESTMENT PORTFOLIO--NOVEMBER 30, 1995
<TABLE>
<CAPTION>
COMMON STOCK--91.6% SHARES VALUE
<S> <C> <C>
---------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY--4.7%
Apparel & Textiles--1.8%
Tommy Hilfiger Corp.+................................................ 60,000 $ 2,647,500
Retail--2.9%
Federated Department Stores, Inc.+................................... 92,000 2,679,500
Office Depot, Inc.+.................................................. 27,200 666,400
Sunglass Hut International, Inc.+.................................... 50,700 1,064,700
------------
7,058,100
------------
CONSUMER STAPLES--2.7%
Food, Beverage & Tobacco--2.7%
Boston Chicken, Inc.+................................................ 49,000 1,696,625
Nabisco Holdings Corp. .............................................. 80,000 2,260,000
------------
3,956,625
------------
ENERGY--4.5%
Energy Services--2.4%
Schlumberger Ltd. ................................................... 30,000 1,905,000
Tidewater, Inc. ..................................................... 50,000 1,431,250
Western Atlas, Inc.+................................................. 4,000 191,500
Energy Sources--2.1%
Apache Corp. ........................................................ 88,000 2,343,000
Burlington Northern Santa Fe......................................... 10,600 854,625
------------
6,725,375
------------
FINANCE--12.4%
Banks--1.4%
Chase Manhattan Corp. ............................................... 34,000 2,069,750
Financial Services--5.0%
Dean Witter, Discover & Co. ......................................... 46,000 2,346,000
Morgan Stanley Group, Inc. .......................................... 22,000 1,897,500
Travelers Group, Inc. ............................................... 55,000 3,272,500
Insurance--6.0%
Aetna Life & Casualty Co. ........................................... 62,500 4,585,938
Cigna Corp. ......................................................... 25,000 2,750,000
Prudential Reinsurance Holdings, Inc. ............................... 82,000 1,711,750
------------
18,633,438
------------
HEALTHCARE--17.0%
Drugs--4.8%
Amgen, Inc.+......................................................... 40,000 1,985,000
Boston Scientific Corp.+............................................. 37,000 1,498,500
Merck & Co., Inc. ................................................... 26,500 1,639,688
SmithKline Beecham PLC ADR........................................... 40,000 2,130,000
Health Services--3.1%
Pharmacia & Upjohn, Inc.+............................................ 65,000 2,331,875
U.S. HealthCare, Inc. ............................................... 50,000 2,275,000
</TABLE>
- ---------------------
38
<PAGE> 91
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE (continued)
Medical Products--9.1%
Baxter International, Inc. .......................................... 60,000 $ 2,520,000
Genzyme Corp.+....................................................... 40,000 2,610,000
Guidant Corp. ....................................................... 64,500 2,410,687
IDEXX Laboratories, Inc.+............................................ 51,000 2,269,500
Medtronic, Inc. ..................................................... 28,000 1,536,500
Possis Medical, Inc. ................................................ 125,000 2,234,375
------------
25,441,125
------------
INDUSTRIAL & COMMERCIAL--11.2%
Aerospace & Military Technology--2.2%
Boeing Co. .......................................................... 46,000 3,352,250
Business Services--2.4%
CUC International, Inc.+............................................. 60,000 2,280,000
DST Systems, Inc. ................................................... 48,000 1,386,000
Electrical Equipment--2.1%
Austria Mikro Systeme International AG............................... 7,200 1,265,864
AVX Corp. ........................................................... 65,000 1,868,750
Machinery--4.5%
BJ Services Co.+..................................................... 107,000 2,634,875
Case Corp. .......................................................... 40,000 1,670,000
Harnischfeger Industries, Inc. ...................................... 70,000 2,371,250
------------
16,828,989
------------
INFORMATION & ENTERTAINMENT--9.7%
Broadcasting & Media--8.3%
Evergreen Media Corp.+............................................... 50,000 1,212,500
MobileMedia Corp.+................................................... 120,000 3,105,000
News Corp., Ltd. ADR................................................. 100,000 1,887,500
Tele-Communications Liberty Media Group+............................. 18,750 525,000
Tele-Communications TCI Group+....................................... 75,000 1,387,500
Viacom, Inc.+........................................................ 90,500 4,366,625
Leisure & Tourism--1.4%
Disney (Walt) Co. ................................................... 35,000 2,104,375
------------
14,588,500
------------
INFORMATION TECHNOLOGY--24.0%
Communication Equipment--4.9%
Ericsson (L.M.) Telephone Co. ADR.................................... 96,000 2,280,000
Glenayre Technologies, Inc.+......................................... 25,000 1,431,250
Paging Network, Inc.+................................................ 160,000 3,560,000
Computers & Business Equipment--10.7%
3Com Corp.+.......................................................... 78,000 3,568,500
Ascend Communications, Inc.+......................................... 22,000 1,573,000
Bay Networks, Inc.+.................................................. 81,500 3,667,500
NETCOM On-Line Communications Services+.............................. 21,000 1,533,000
Newbridge Networks Corp.+............................................ 54,000 2,301,750
StrataCom, Inc.+..................................................... 26,000 1,950,000
Sun Microsystems, Inc.+.............................................. 18,000 1,514,250
Electronics--1.3%
Intel Corp. ......................................................... 31,000 1,887,125
Software--4.9%
America Online, Inc.+................................................ 50,000 2,043,750
Cheyenne Software, Inc.+............................................. 60,600 1,408,950
</TABLE>
---------------------
39
<PAGE> 92
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Software (continued)
Premenos Technology Corp.+........................................... 50,000 $ 2,125,000
Sybase, Inc.+........................................................ 50,000 1,756,250
Telecommunications--2.2%
MFS Communications, Inc.+............................................ 45,000 2,047,500
Mobile Telecommunication Technologies Corp.+......................... 55,000 1,265,000
------------
35,912,825
------------
MATERIALS--5.4%
Chemicals--5.4%
Arcadian Corp. ...................................................... 155,000 3,216,250
Monsanto Co. ........................................................ 20,000 2,290,000
USA Waste Services, Inc.+............................................ 125,000 2,625,000
------------
8,131,250
------------
TOTAL INVESTMENT SECURITIES (cost $120,802,728)...................... 137,276,227
------------
PRINCIPAL
SHORT-TERM SECURITIES--9.5% AMOUNT
---------------------------------------------------------------------------------------------------
CORPORATE SHORT-TERM NOTES--7.5%
Albertson's, Inc. 5.70% due 12/14/95................................. $3,110,000 3,103,599
Bellsouth Capital Funding Corp. 5.71% due 12/12/95................... 2,280,000 2,276,022
du Pont (E.I.) de Nemours & Co. 5.71% due 12/05/95................... 2,430,000 2,428,458
Heinz (H.J.) Co. 5.72% due 12/01/95.................................. 700,000 700,000
Wal-Mart Stores, Inc. 5.70% due 12/04/95............................. 2,775,000 2,773,682
------------
11,281,761
------------
FEDERAL AGENCY OBLIGATIONS--2.0%
Federal Home Loan Bank Discount Notes 5.80% due 12/01/95............. 2,930,000 2,930,000
------------
TOTAL SHORT-TERM SECURITIES (cost $14,211,761)....................... 14,211,761
------------
TOTAL INVESTMENTS--
(cost $135,014,489) 101.1% 151,487,988
Liabilities in excess of other assets -- (1.1) (1,577,505)
----- ------------
NET ASSETS -- 100.0% $149,910,483
===== ============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR--American Depositary Receipt
See Notes to Financial Statements
- ---------------------
40
<PAGE> 93
- ---------------------
SUNAMERICA SERIES TRUST
PROVIDENT GROWTH
PORTFOLIO INVESTMENT PORTFOLIO--NOVEMBER 30, 1995
<TABLE>
<CAPTION>
COMMON STOCK--96.7% SHARES VALUE
<S> <C> <C>
---------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY--2.9%
Retail--2.9%
AutoZone, Inc.+...................................................... 49,500 $ 1,441,688
Office Depot, Inc.+.................................................. 76,000 1,862,000
-----------
3,303,688
-----------
CONSUMER STAPLES--0.9%
Household Products--0.9%
Gillette Co.......................................................... 20,600 1,068,625
-----------
ENERGY--2.0%
Energy Sources--2.0%
Enron Corp........................................................... 60,800 2,280,000
-----------
FINANCE--15.9%
Financial Services--12.5%
Federal Home Loan Mortgage Corp...................................... 5,300 408,100
Federal National Mortgage Association................................ 20,600 2,255,700
Finova Group, Inc.................................................... 31,000 1,503,500
First Data Corp...................................................... 83,625 5,937,375
First USA, Inc....................................................... 28,200 1,293,675
MBNA Corp............................................................ 75,300 3,040,237
Insurance--3.4%
American International Group, Inc.................................... 15,300 1,373,175
MGIC Investment Corp................................................. 36,400 2,024,750
PMI Group, Inc....................................................... 11,500 546,250
-----------
18,382,762
-----------
HEALTHCARE--11.4%
Drugs--5.4%
Amgen, Inc.+......................................................... 17,000 843,625
Cardinal Health, Inc................................................. 26,800 1,447,200
Merck & Co., Inc..................................................... 14,200 878,625
Pfizer, Inc.......................................................... 26,800 1,554,400
Quorum Health Group, Inc.+........................................... 41,600 899,600
Scherer (R.P.) Corp.+................................................ 13,200 585,750
Health Services--2.5%
HEALTHSOUTH Corp.+................................................... 48,200 1,458,050
United Healthcare Corp............................................... 22,500 1,414,687
Medical Products--3.5%
Medtronic, Inc....................................................... 53,400 2,930,325
St. Jude Medical, Inc................................................ 28,200 1,113,900
-----------
13,126,162
-----------
INDUSTRIAL & COMMERCIAL--10.9%
Aerospace & Military Technology--1.8%
Boeing Co............................................................ 28,300 2,062,363
</TABLE>
---------------------
41
<PAGE> 94
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Business Services--2.3%
ASM Lithography Holdings NV+......................................... 20,000 $ 842,500
CUC International, Inc.+............................................. 17,000 646,000
Loewen Group, Inc.................................................... 45,400 1,203,100
Electrical Equipment--1.4%
AVX Corp............................................................. 24,000 690,000
SGS-Thomson Microelectronics NV+..................................... 25,000 931,250
Machinery--4.8%
American Standard Companies, Inc.+................................... 37,800 1,134,000
Applied Materials, Inc.+............................................. 55,400 2,693,825
Tyco International Ltd............................................... 53,400 1,675,425
Transportation--0.6%
Fritz Cos., Inc.+.................................................... 17,400 674,250
-----------
12,552,713
-----------
INFORMATION & ENTERTAINMENT--6.9%
Broadcasting & Media--5.0%
British Sky Broadcast Group PLC ADR.................................. 49,900 1,989,762
Cabletron Systems, Inc.+............................................. 23,500 1,950,500
Capital Cities/ABC, Inc.............................................. 14,900 1,842,013
Leisure & Tourism--1.9%
HFS, Inc............................................................. 31,200 2,160,600
-----------
7,942,875
------------
INFORMATION TECHNOLOGY--44.1%
Communication Equipment--9.7%
Ericsson (L.M.) Telephone Co. ADR.................................... 206,400 4,902,000
Glenayre Technologies, Inc.+......................................... 16,800 961,800
Motorola, Inc........................................................ 18,800 1,151,500
Nokia Corp. ADR...................................................... 76,400 4,144,700
Computers & Business Equipment--8.4%
3Com Corp.+.......................................................... 47,800 2,186,850
Automatic Data Processing, Inc....................................... 7,800 621,075
Ceridian Corp.+...................................................... 13,000 546,000
Computer Sciences Corp.+............................................. 23,600 1,716,900
Hewlett-Packard Co................................................... 24,500 2,030,437
United States Robotics Corp.......................................... 23,800 2,612,050
Electronics--10.6%
Analog Devices, Inc.+................................................ 50,950 1,885,150
Intel Corp........................................................... 65,700 3,999,487
LSI Logic Corp.+..................................................... 32,000 1,340,000
Molex, Inc........................................................... 26,875 839,844
Texas Instruments, Inc............................................... 49,100 2,841,663
Xilinx, Inc.+........................................................ 39,800 1,278,575
Software--13.6%
Cisco Systems, Inc.+................................................. 33,800 2,843,425
Computer Associates International, Inc............................... 49,200 3,222,600
Informix Corp.+...................................................... 56,600 1,567,113
Microsoft Corp.+..................................................... 38,700 3,371,737
Oracle Systems Corp.+................................................ 88,550 4,017,956
Paychex, Inc......................................................... 15,000 676,875
</TABLE>
- ---------------------
42
<PAGE> 95
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Telecommunications--1.8%
Andrew Corp.+........................................................ 27,850 $ 1,204,513
Frontier Corp........................................................ 35,400 915,975
------------
50,878,225
------------
MATERIALS--1.7%
Chemicals--0.9%
Air Products & Chemicals, Inc........................................ 17,500 971,250
Forest Products--0.8%
Alco Standard Corp................................................... 21,400 930,900
------------
1,902,150
------------
TOTAL INVESTMENT SECURITIES (cost $83,389,759)....................... 111,437,200
------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT--2.3% AMOUNT
---------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT--2.3%
Agreement with State Street Bank & Trust Co., bearing interest of
4.50% dated 11/30/95, to be repurchased 12/01/95 in the amount of
$2,633,329 and collateralized by $2,345,000 U.S. Treasury Bonds
7.50% due 11/15/16 (cost $2,633,000).............................. $2,633,000 2,633,000
------------
TOTAL INVESTMENTS--
(cost $86,022,759) 99.0% 114,070,200
Other assets less liabilities-- 1.0 1,205,839
----- -------------
NET ASSETS-- 100.0% $115,276,039
===== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR--American Depositary Receipt
See Notes to Financial Statements
---------------------
43
<PAGE> 96
- ---------------------
SUNAMERICA SERIES TRUST
VENTURE VALUE PORTFOLIO INVESTMENT PORTFOLIO--NOVEMBER 30, 1995
<TABLE>
<CAPTION>
COMMON STOCK--87.9% SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY--4.7%
Automotive--2.3%
General Motors Corp. ................................................ 72,000 $ 3,492,000
Retail--2.4%
Federated Department Stores, Inc.+................................... 68,800 2,003,800
Harcourt General, Inc. .............................................. 36,600 1,473,150
Office Max, Inc. .................................................... 100 2,275
Sears, Roebuck & Co. ................................................ 8,100 318,937
------------
7,290,162
------------
CONSUMER STAPLES--8.5%
Food, Beverage & Tobacco--7.5%
American Brands, Inc. ............................................... 2,400 100,200
Archer-Daniels-Midland Co. .......................................... 3,200 55,200
Coca-Cola Co. ....................................................... 53,000 4,014,750
McDonald's Corp. .................................................... 69,600 3,105,900
Nestle SA ADR........................................................ 32,900 1,756,113
Philip Morris Cos., Inc. ............................................ 2,600 228,150
Seagram Co., Ltd. ................................................... 36,600 1,335,900
Tyson Foods, Inc. ................................................... 43,400 1,030,750
Household Products--1.0%
American Home Products Corp. ........................................ 600 54,750
Gillette Co. ........................................................ 27,800 1,442,125
Maytag Corp. ........................................................ 2,200 44,825
------------
13,168,663
------------
ENERGY--4.3%
Energy Services--4.2%
Amerada Hess Corp. .................................................. 45,200 2,147,000
Amoco Corp. ......................................................... 700 47,425
Burlington Resources, Inc. .......................................... 55,100 2,121,350
Chevron Corp. ....................................................... 4,100 202,438
Energy Ventures, Inc.+............................................... 28,400 596,400
Exxon Corp. ......................................................... 6,500 502,937
Mobil Corp. ......................................................... 600 62,625
Schlumberger Ltd. ................................................... 11,600 736,600
Sonat, Inc. ......................................................... 1,200 38,700
Energy Sources--0.1%
Atlantic Richfield Co. .............................................. 1,300 140,888
------------
6,596,363
------------
FINANCE--41.7%
Banks--10.3%
Banc One Corp. ...................................................... 80,900 3,084,312
First Bank Systems, Inc. ............................................ 68,900 3,556,962
First Union Corp. ................................................... 1,100 60,088
Golden West Financial Corp. ......................................... 38,300 1,958,088
Republic New York Corp. ............................................. 13,100 825,300
State Street Boston Corp. ........................................... 56,200 2,529,000
Wells Fargo & Co. ................................................... 18,400 3,868,600
</TABLE>
- ---------------------
44
<PAGE> 97
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services--13.4%
American Express Co. ................................................ 121,300 $ 5,155,250
Barnett Banks, Inc. ................................................. 24,500 1,473,063
Dean Witter, Discover & Co. ......................................... 12,800 652,800
Donaldson Lufkin & Jenrette, Inc. ................................... 26,100 867,825
Federal Home Loan Mortgage Corp. .................................... 10,800 831,600
Morgan (J.P.) & Co., Inc. ........................................... 38,000 2,983,000
Morgan Stanley Group, Inc. .......................................... 44,100 3,803,625
Travelers Group, Inc. ............................................... 85,200 5,069,400
Insurance--18.0%
20th Century Industries+ ............................................ 76,400 1,394,300
Allstate Corp. ...................................................... 97,795 4,009,595
American International Group, Inc. .................................. 21,700 1,947,575
Berkley (W.R.) Corp. ................................................ 45,200 2,045,300
Chubb Corp. ......................................................... 45,800 4,454,050
Equitable Cos., Inc. ................................................ 176,700 4,395,412
General Reinsurance Group............................................ 28,900 4,324,162
NAC Reinsurance Corp. ............................................... 48,900 1,613,700
National Reinsurance Corp. .......................................... 21,700 713,388
Progressive Corp., Ohio.............................................. 36,100 1,606,450
Transatlantic Holdings, Inc. ........................................ 19,400 1,333,750
------------
64,556,595
------------
HEALTHCARE--3.1%
Drugs--3.1%
Bristol-Myers Squibb Co. ............................................ 500 40,125
Johnson & Johnson Co. ............................................... 14,700 1,273,388
Merck & Co., Inc. ................................................... 10,400 643,500
Pfizer, Inc. ........................................................ 48,500 2,813,000
Health Services--0.0%
Transport Holdings, Inc.+ ........................................... 316 12,403
------------
4,782,416
------------
INDUSTRIAL & COMMERCIAL--1.4%
Business Services--0.0%
Dun & Bradstreet Corp. .............................................. 300 18,713
WMX Technologies, Inc. .............................................. 1,000 29,500
Electrical Equipment--0.2%
General Electric Co. ................................................ 3,200 215,200
Transportation--1.2%
Illinois Central Corp. .............................................. 21,000 850,500
Union Pacific Corp. ................................................. 15,500 1,050,125
------------
2,164,038
------------
INFORMATION & ENTERTAINMENT--6.5%
Broadcasting & Media--4.6%
Gannett Co., Inc. ................................................... 49,400 3,013,400
News Corp., Ltd. ADR................................................. 142,000 2,680,250
Tribune Co. ......................................................... 23,500 1,515,750
Leisure & Tourism--1.9%
Disney (Walt) Co. ................................................... 14,300 859,788
Host Marriott Corp.+ ................................................ 158,900 2,045,837
------------
10,115,025
------------
</TABLE>
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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY--8.9%
Communication Equipment--1.5%
AirTouch Communications, Inc.+....................................... 57,000 $ 1,660,125
Cellular Communications, Inc.+ ...................................... 11,900 569,713
SBC Communications, Inc. ............................................ 700 37,800
Computers & Business Equipment--2.4%
Hewlett-Packard Co. ................................................. 44,500 3,687,937
Electronics--5.0%
Cirrus Logic, Inc.+.................................................. 32,400 939,600
Intel Corp. ......................................................... 68,600 4,176,025
Texas Instruments, Inc. ............................................. 46,100 2,668,037
Telecommunications--0.0%
Royal PTT Nederland NV ADR+ ......................................... 100 3,538
------------
13,742,775
------------
MATERIALS--5.7%
Chemicals--0.9%
Dow Chemical Co. .................................................... 400 28,350
Eastman Kodak Co. ................................................... 21,800 1,482,400
Forest Products--4.5%
Fort Howard Corp.+................................................... 86,200 1,713,225
International Paper Co. ............................................. 600 22,875
Jefferson Smurfit Corp. ............................................. 57,700 649,125
Mead Corp. .......................................................... 20,100 1,148,212
Union Camp Corp. .................................................... 47,400 2,328,525
Weyerhaeuser Co. .................................................... 24,200 1,095,050
Metals & Minerals--0.3%
Alumax, Inc.+........................................................ 3,900 129,675
Reynolds Metals Co. ................................................. 5,500 317,625
------------
8,915,062
------------
REAL ESTATE--2.0%
Real Estate Investment Trusts--2.0%
Federal Realty Investment Trust...................................... 25,000 550,000
Kimco Realty Corp. .................................................. 3,700 148,000
Mid-Atlantic Realty Trust............................................ 14,800 125,800
Saul Centers, Inc. .................................................. 15,900 220,613
Simon Property Group, Inc. .......................................... 400 9,300
United Dominion Realty Trust, Inc. .................................. 27,300 385,612
Vornado Realty Trust................................................. 39,200 1,391,600
Weingarten Realty Investors.......................................... 8,000 274,000
------------
3,104,925
------------
UTILITIES--1.1%
Electric Utilities--0.1%
Carolina Power & Light Co. .......................................... 600 19,725
Duke Power Co. ...................................................... 900 40,387
New England Electric Systems......................................... 300 11,700
San Diego Gas & Electric Co. ........................................ 500 11,375
SCEcorp. ............................................................ 700 10,938
Southern Co. ........................................................ 1,200 27,450
Wisconsin Energy Corp. .............................................. 500 14,750
</TABLE>
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COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Telephone--1.0%
AT&T Corp. .......................................................... 7,700 $ 508,200
MCI Communications Corp. ............................................ 39,700 1,061,975
------------
1,706,500
------------
TOTAL COMMON STOCK (cost $121,711,418)............................... 136,142,524
------------
PREFERRED STOCK--2.4%
----------------------------------------------------------------------------------------------------
FINANCE--2.4%
Banks--2.4%
Banc One Corp., Series C............................................. 3,700 250,213
Citicorp............................................................. 18,510 3,549,292
------------
TOTAL PREFERRED STOCK (cost $3,029,488).............................. 3,799,505
------------
TOTAL INVESTMENT SECURITIES (cost $124,740,906)...................... 139,942,029
------------
PRINCIPAL
SHORT-TERM SECURITIES--11.0% AMOUNT
----------------------------------------------------------------------------------------------------
FEDERAL AGENCY OBLIGATIONS--11.0%
Federal Farm Credit Bank Discount Notes 5.68% due 12/04/95........... $5,410,000 5,407,439
Federal Home Loan Mortgage Discount Notes 5.80% due 12/01/95......... 11,590,000 11,590,000
------------
TOTAL SHORT-TERM SECURITIES (cost $16,997,439) 16,997,439
------------
TOTAL INVESTMENTS--
(cost $141,738,345) 101.3% 156,939,468
Liabilities in excess of other assets-- (1.3) (2,031,471)
----- ------------
NET ASSETS-- 100.0% $154,907,997
===== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR--American Depositary Receipt
See Notes to Financial Statements
---------------------
47
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- ---------------------
SUNAMERICA SERIES TRUST
GLOBAL EQUITIES PORTFOLIO INVESTMENT PORTFOLIO--NOVEMBER 30, 1995
<TABLE>
<CAPTION>
COMMON STOCK--94.7% SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
AUSTRALIA--1.0%
Coca-Cola Amatil Ltd. (Consumer Staples)............................. 67,219 $ 543,778
Mayne Nickless Ltd. (Industrial & Commercial)........................ 27,313 125,680
National Australia Bank Ltd. (Finance)............................... 41,000 357,236
Qantas Airways Ltd. (Industrial & Commercial)........................ 41,731 70,925
Woolworths Ltd. (Consumer Discretionary)............................. 275,404 643,849
------------
1,741,468
------------
BELGIUM--0.3%
Kredietbank NV (Finance)............................................. 2,271 580,545
------------
CANADA--1.4%
Alcan Aluminium Ltd. (Materials)..................................... 52 1,763
Magna International, Inc. (Consumer Discretionary)................... 15,000 651,454
Renaissance Energy Ltd. (Energy)..................................... 71,900 1,653,938
------------
2,307,155
------------
DENMARK--0.7%
Den Danske Bank (Finance)............................................ 15,300 1,035,112
Tele Danmark A/S (Utilities)......................................... 3,300 179,668
------------
1,214,780
------------
FINLAND--1.0%
Metsa-Serla Oy (Materials)........................................... 14,400 485,446
Nokia Corp. (Information Technology)................................. 12,800 702,315
Unitas Ltd. (Finance)................................................ 175,035 435,431
------------
1,623,192
------------
FRANCE--5.6%
Assurance General de France (Finance)................................ 22,600 726,841
Banque National Paris (Finance)...................................... 16,200 717,403
Bouygues SA (Consumer Discretionary)................................. 3,100 340,407
Casino Guichard Perrachon et Cie S.C.A. (Consumer Discretionary)..... 6,849 193,509
Cie Financiere de Paribas (Finance).................................. 8,415 467,247
Credit Foncier de France (Finance)................................... 7,300 142,328
Eaux (cie Generale) (Industrial & Commercial)........................ 7,370 717,137
Groupe Danone (Consumer Staples)..................................... 4,490 702,673
Legris Industries SA (Industrial & Commercial)....................... 5,700 191,885
Peugeot SA (Consumer Discretionary).................................. 5,550 717,313
Salomon SA (Consumer Staples)........................................ 920 512,125
Sanofi SA (Healthcare)............................................... 7,600 439,964
Sefimeg (Real Estate)................................................ 3,700 255,786
Seita (Healthcare)................................................... 16,000 525,799
Simco (Real Estate).................................................. 2,600 237,050
Societe de Immeubles (Real Estate)................................... 2,671 147,720
Total SA (Energy).................................................... 12,405 763,117
TV Francaise (Information & Entertainment)........................... 3,430 338,842
Unibail SA (Finance)................................................. 4,630 459,243
Union Immeubles de France (Real Estate).............................. 3,300 295,582
USINOR SACILOR (Materials)........................................... 23,900 344,336
------------
9,236,307
------------
GERMANY--2.7%
Bayer AG (Materials)................................................. 3,810 991,290
Deutsche Bank AG (Finance)........................................... 22,000 1,032,082
</TABLE>
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<S> <C> <C>
GERMANY (continued)
KSB Kl Schanz Beck (Finance)......................................... 950 $ 154,360
Lufthansa AG (Industrial & Commercial)............................... 3,780 501,805
Schmalbach-Lubeca AG (Materials)..................................... 2,400 350,135
Sudzucker AG (Consumer Staples)...................................... 953 484,308
Veba AG (Utilities).................................................. 22,180 904,805
------------
4,418,785
------------
HONG KONG--1.7%
CITIC Pacific Ltd. (Information & Entertainment)..................... 97,000 305,363
Consolidated Electric Power (Utilities).............................. 257,000 420,309
Dao Heng Bank Group (Finance)........................................ 101,000 372,144
Hong Kong & China Gas Co., Ltd. (Utilities).......................... 79,400 129,854
Hopewell Holdings Ltd. (Real Estate)................................. 647,000 365,955
Hysan Development Co., Ltd. (Real Estate)............................ 50,000 130,254
Johnson Electric Holdings Ltd. (Industrial & Commercial)............. 109,000 225,471
New World Development Co., Ltd. (Real Estate)........................ 32,783 136,898
New World Infrastructure Ltd. (Consumer Discretionary)............... 227 395
Sun Hung Kai Properties Ltd. (Real Estate)........................... 24,000 193,150
Television Broadcasting Ltd. (Information & Entertainment)........... 68,000 256,707
Yizheng Chemical Fibre (Materials)................................... 947,000 231,397
------------
2,767,897
------------
INDIA--0.2%
Bajaj Auto GDR (Consumer Discretionary).............................. 13,400 301,500
------------
INDONESIA--0.7%
Hanjaya Mandala Sampoerna (Healthcare)............................... 60,000 601,708
Indosat (Information Technology)..................................... 123,500 417,796
Perusahaan Persero Part Telekom ADR (Utilities)...................... 6,000 126,000
------------
1,145,504
------------
IRELAND--0.3%
Irish Life PLC (Finance)............................................. 120,066 462,012
------------
ITALY--0.9%
ENI SPA (Energy)..................................................... 106,000 347,993
Rinascente (Consumer Discretionary).................................. 102,000 571,497
SIP (Finance)........................................................ 284,050 386,331
Telecom Italia Mobile SPA nonconvertible (Utilities)................. 92,500 90,234
Telecom Italia Mobile SPA (Utilities)................................ 24,450 39,446
------------
1,435,501
------------
JAPAN--23.2%
Amano Corp. (Industrial & Commercial)................................ 39,000 490,614
Aoki International Co., Ltd. (Consumer Discretionary)................ 3,000 71,057
Asahi Bank (Finance)................................................. 113,000 1,310,467
Asahi Glass Co., Ltd. (Materials).................................... 72,000 792,531
Bank of Tokyo Ltd. (Finance)......................................... 37,000 603,636
Canon, Inc. (Information Technology)................................. 10,000 175,921
Chiba Bank Ltd. (Finance)............................................ 23,000 202,310
Dai Nippon Printing Co., Ltd. (Industrial & Commercial).............. 25,000 437,346
Daifuku Co., Ltd. (Industrial & Commercial).......................... 25,000 304,668
Daito Trust Construction Co. (Industrial & Commercial)............... 4,000 38,880
Daiwa House Industry Co. Ltd. (Industrial & Commercial).............. 14,000 209,140
Daiwa Securities Co., Ltd. (Finance)................................. 14,000 194,005
DDI Corp. (Healthcare)............................................... 208 1,672,177
East Japan Railway (Industrial & Commercial)......................... 135 662,064
Fuji Bank Ltd. (Finance)............................................. 59,000 1,229,287
Fuji Photo Film Co., Ltd. (Materials)................................ 11,000 272,432
</TABLE>
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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (continued)
Furukawa Co., Ltd. (Materials)....................................... 40,000 $ 199,312
Heiwa Corp. (Industrial & Commercial)................................ 23,000 596,757
Hirose Electric Co., Ltd. (Information Technology)................... 3,000 182,506
Hokkaido Takushoku Bank Ltd. (Finance)............................... 75,000 198,280
Honda Motor Co., Ltd. (Consumer Discretionary)....................... 11,000 198,919
House Food Corp. (Consumer Staples).................................. 18,000 318,428
Ito-Yokado Co. (Consumer Discretionary).............................. 7,000 386,634
Japan Securities Finance Co., Ltd. (Finance)......................... 30,000 430,467
Kamigumi Co., Ltd. (Industrial & Commercial)......................... 28,000 255,096
Kandenko Co. (Consumer Discretionary)................................ 24,000 292,482
Kao Corp. (Consumer Staples)......................................... 62,000 761,671
Kirin Brewery Co., Ltd. (Consumer Staples)........................... 35,000 371,499
Kokuyo Co., Ltd. (Industrial & Commercial)........................... 9,000 193,710
Kuraray Co., Ltd. (Materials)........................................ 57,000 582,604
Kyocera Corp. (Information Technology)............................... 4,000 316,462
Long-Term Credit Bank of Japan Ltd. (Finance)........................ 22,000 181,405
Mabuchi Motor Co., Ltd. (Consumer Discretionary)..................... 6,000 371,499
Maeda Corp. (Industrial & Commercial)................................ 9,000 153,907
Marui Co., Ltd. (Consumer Discretionary)............................. 3,000 56,020
Matsushita Electric Industrial Co., Ltd. (Industrial & Commercial)... 58,000 860,737
Matsushita Electric Works Ltd. (Industrial & Commercial)............. 37,000 381,818
Mitsubishi Bank Ltd. (Finance)....................................... 56,000 1,221,818
Mitsubishi Heavy Industrial Ltd. (Industrial & Commercial)........... 47,000 374,614
Mitsubishi Materials Corp. (Materials)............................... 39,000 196,246
Mitsubishi Oil Co., Ltd. (Utilities)................................. 47,000 403,715
Mitsui Marine & Fire Co., Ltd. (Finance)............................. 60,000 403,931
Mitsui Trust & Banking Co. (Finance)................................. 123,000 1,153,238
Mori Seiki Co., Ltd. (Industrial & Commercial)....................... 9,000 178,673
National House Industrial Co., Ltd. (Industrial & Commercial)........ 14,000 227,027
NGK Insulators Ltd. (Industrial & Commercial)........................ 25,000 248,157
NGK Spark Plug Co., Ltd. (Industrial & Commercial)................... 7,000 90,123
Nikko Securities Co., Ltd. (Finance)................................. 39,000 429,287
Nintendo Co., Ltd. (Consumer Discretionary).......................... 5,100 402,988
Nippon Express Co., Ltd. (Industrial & Commercial)................... 35,000 303,735
Nippon Light Metal Co., Ltd. (Materials)............................. 40,000 231,941
Nippon Steel Corp. (Materials)....................................... 112,000 385,258
Nisshin Steel Co., Ltd. (Materials).................................. 94,000 386,162
NKK Corp. (Materials)................................................ 140,000 385,258
Nomura Securities International, Inc. (Finance)...................... 61,000 1,199,017
Ono Pharmaceutical Co., Ltd. (Healthcare)............................ 1,000 35,774
Osaka Gas Co. (Utilities)............................................ 89,000 302,644
Rohm Co. (Information Technology).................................... 15,000 915,479
Sakura Bank Ltd. (Finance)........................................... 113,000 1,221,622
Sankyo Co., Ltd. (Healthcare)........................................ 8,000 178,477
Santen Pharmaceutical Co. (Healthcare)............................... 2,000 44,226
Seven-Eleven Japan Co., Ltd. (Consumer Discretionary)................ 23,000 1,591,351
Shimano, Inc. (Industrial & Commercial).............................. 7,000 122,457
Shimizu Construction Co. (Consumer Discretionary).................... 37,000 378,182
Shiseido Co., Ltd. (Healthcare)...................................... 24,000 254,742
Sony Corp. ADR (Consumer Discretionary).............................. 2,020 108,827
Sumitomo Electric Industries Ltd. (Industrial & Commercial).......... 27,000 315,774
Sumitomo Marine & Fire Insurance Co., Ltd. (Finance)................. 46,000 355,794
Sumitomo Realty & Development Co., Ltd. (Real Estate)................ 52,000 349,052
Sumitomo Rubber Industries Ltd. (Industrial & Commercial)............ 14,000 111,450
Sumitomo Bank (Finance).............................................. 81,000 1,560,295
Taisho Pharmaceutical Co., Ltd. (Healthcare)......................... 19,000 358,526
Takeda Chemical Industries Ltd. (Healthcare)......................... 24,000 358,526
Toagosei Co., Ltd. (Materials)....................................... 21,000 114,752
Tokai Bank Ltd. (Finance)............................................ 47,000 572,776
</TABLE>
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----------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (continued)
Tokyo Electric Power Co., Inc. (Utilities)........................... 19,190 $ 497,903
Tokyo Gas Co., Ltd. (Utilities)...................................... 181,000 638,614
Tokyo Steel Manufacturing Co., Ltd. (Materials)...................... 38,000 702,113
Tostem Corp. (Industrial & Commercial)............................... 17,000 517,936
Toyo Kanetsu K.K. (Energy)........................................... 39,000 165,199
Toyota Motor Corp. (Consumer Discretionary).......................... 65,000 1,284,029
Ube Industries Ltd. (Materials)...................................... 29,000 110,015
Yakult Honsha Co. (Consumer Staples)................................. 26,000 344,963
Yamanouchi Pharmaceutical Co., Ltd. (Healthcare)..................... 22,000 473,513
Yamazaki Baking Co. (Consumer Staples)............................... 16,000 284,619
------------
38,447,566
------------
KOREA--0.5%
Hyundai Motor Co. GDR (Consumer Discretionary)....................... 1,000 16,250
Korea Electric Power Corp. (Utilities)............................... 7,000 277,947
Korea Electric Power Corp. ADR (Utilities)........................... 4,400 106,700
Korea Mobile Telecommunications Corp. GDR (Information
Technology)........................................................ 5,100 189,975
Pohang Iron & Steel Co., Ltd. ADR (Materials)........................ 10,000 245,000
Pohang Iron & Steel Co., Ltd. (Materials)............................ 590 44,787
------------
880,659
------------
MALAYSIA--1.1%
AMMB Holdings Bhd (Finance).......................................... 32,000 331,100
Malakoff Bhd (Industrial & Commercial)............................... 80,000 245,960
Petronas Gas Bhd (Energy)............................................ 74,000 249,389
Rashid Hussain Bhd (Finance)......................................... 33,000 81,947
Resorts World Bhd (Information & Entertainment)...................... 67,000 327,473
Telekom Malaysia Bhd (Utilities)..................................... 73,000 543,831
------------
1,779,700
------------
MEXICO--0.2%
Panamerican Beverages, Inc. ADR (Consumer Staples)................... 8,200 264,450
Telefonos de Mexico SA ADR (Utilities)............................... 3,300 108,900
------------
373,350
------------
NETHERLANDS--1.8%
Fortis NV (Finance).................................................. 20,900 1,396,517
Heineken NV (Consumer Staples)....................................... 4,021 704,724
Internationale Nederlanden Groep NV CVA (Finance).................... 12,357 808,894
------------
2,910,135
------------
NEW ZEALAND--0.5%
Air New Zealand Ltd. (Industrial & Commercial)....................... 4,000 13,971
Fletcher Challenge Ltd. (Industrial & Commercial).................... 91,000 128,328
Lion Nathan Ltd. (Consumer Staples).................................. 116,000 266,580
Telecommunications Corp. of New Zealand (Utilities).................. 108,100 452,387
------------
861,266
------------
NORWAY--0.6%
Bergesen D.Y. AS (Industrial & Commercial)........................... 21,300 438,106
Christiania Bank Og Kreditkasse (Finance)............................ 230,000 516,408
------------
954,514
------------
PHILIPPINES--0.2%
Manila Electric Co. (Utilities)...................................... 42,750 329,788
Philippine Commerce International Bank (Finance)..................... 4,470 37,556
------------
367,344
------------
</TABLE>
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
SINGAPORE--1.0%
Oversea Chinese Banking Corp. Ltd. (Finance)......................... 39,000 $ 467,281
Overseas Union Bank Ltd. (Finance)................................... 103,000 653,563
Singapore Airlines Ltd. (Industrial & Commercial).................... 13,000 121,659
Singapore Press Holdings Ltd. (Information & Entertainment).......... 26,400 417,384
------------
1,659,887
------------
SPAIN--1.2%
Banco Intercontinental Espanol (Finance)............................. 7,000 663,908
Repsol SA (Energy)................................................... 20,400 643,008
Tabacalera SA (Consumer Staples)..................................... 15,800 593,518
Uralita SA (Materials)............................................... 12,300 124,741
------------
2,025,175
------------
SWEDEN--1.4%
Astra AB (Healthcare)................................................ 32,600 1,215,880
Stora Kopparbergs (Materials)........................................ 43,200 550,255
Tidnings AB Marieberg (Information & Entertainment).................. 21,700 516,391
------------
2,282,526
------------
SWITZERLAND--2.1%
Baloise Holdings (Finance)........................................... 100 202,042
Ciba-Geigy AG (Materials)............................................ 1,200 1,069,842
Forbo Holding SA (Finance)........................................... 1,400 544,279
Nestle SA (Consumer Staples)......................................... 1,030 1,097,907
Winterthur Swiss Insurance Co. (Finance)............................. 812 540,873
------------
3,454,943
------------
TAIWAN--0.2%
Advanced Semiconductor Materials International NV GDR (Information
Technology)+....................................................... 21,100 238,430
China Steel Corp. GDS (Materials).................................... 6,000 95,220
------------
333,650
------------
THAILAND--0.2%
Bangkok Bank (Finance)............................................... 19,000 202,385
Thai Farmers Bank (Finance).......................................... 23,000 204,769
------------
407,154
------------
UNITED KINGDOM--7.9%
Anglian Water PLC (Industrial & Commercial).......................... 13,300 120,335
B.A.T. Industries PLC (Consumer Staples)............................. 131,000 1,117,070
British Airways PLC (Industrial & Commercial)........................ 88,000 619,718
British Land Co. PLC (Real Estate)................................... 76,000 436,895
British Telecommunications PLC (Information Technology).............. 120,000 691,672
BTR PLC (Industrial & Commercial).................................... 135,800 695,424
Enterprise Oil PLC (Energy).......................................... 39,600 215,824
Forte PLC (Information & Entertainment).............................. 84,500 442,422
General Electric Co. (Industrial & Commercial)....................... 136,291 663,511
Grand Metropolitan PLC (Industrial & Commercial)..................... 120,200 813,356
Hepworth PLC (Industrial & Commercial)............................... 117,000 557,953
House Of Fraser PLC (Consumer Discretionary)......................... 62,200 157,119
Marley PLC (Industrial & Commercial)................................. 214,800 369,948
Meyer International PLC (Materials).................................. 13,300 79,409
Mowlem (John) & Co. PLC (Materials).................................. 360,000 319,657
P & O PLC (Industrial & Commercial).................................. 71,354 530,622
Royal Bank of Scotland Group PLC (Finance)........................... 77,800 664,611
Rugby Group PLC (Industrial & Commercial)............................ 309,600 507,153
Sainsbury (J.) PLC (Consumer Discretionary).......................... 69,700 410,282
Smith (W.H.) Group PLC (Consumer Discretionary)...................... 75,000 497,168
Smithkline Beecham PLC (Healthcare).................................. 31,593 335,905
Tate & Lyle, PLC (Consumer Staples).................................. 119,000 828,919
</TABLE>
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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (continued)
Thorn EMI PLC (Consumer Discretionary)............................... 11,500 $ 274,208
Vodafone Group PLC (Information Technology).......................... 228,500 815,072
Wimpey (George) PLC (Consumer Discretionary)......................... 499,400 1,001,552
------------
13,165,805
------------
UNITED STATES--36.1%
AirTouch Communications, Inc. (Information Technology)+.............. 46,900 1,365,962
Alco Standard Corp. (Materials)...................................... 12,800 556,800
AlliedSignal, Inc. (Industrial & Commercial)......................... 20,000 945,000
Alumax, Inc. (Materials)+............................................ 4,500 149,625
American International Group, Inc. (Finance)......................... 15,900 1,427,025
Applied Materials, Inc. (Industrial & Commercial)+................... 2,200 106,975
AT&T Corp. (Utilities)............................................... 37,400 2,468,400
Atlantic Richfield Co. (Energy)...................................... 13,000 1,408,875
BankAmerica Corp. (Finance).......................................... 13,500 858,938
Boeing Co. (Industrial & Commercial)................................. 12,200 889,075
Campbell Soup Co. (Consumer Staples)................................. 14,400 804,600
Carnival Corp. (Information & Entertainment)......................... 25,500 663,000
Centocor, Inc. (Industrial & Commercial)+............................ 10,000 140,000
Century Telephone Enterprises, Inc. (Utilities)...................... 27,100 846,875
Colgate-Palmolive Co. (Consumer Staples)............................. 13,600 996,200
Columbia/HCA Healthcare Corp. (Healthcare)........................... 29,000 1,497,125
COMPAQ Computer Corp. (Information Technology)+...................... 27,800 1,376,100
Conrail, Inc. (Industrial & Commercial).............................. 2,700 188,663
Cox Communications, Inc. (Information Technology)+................... 23,500 470,000
Dean Witter, Discover & Co. (Finance)................................ 21,200 1,081,200
Disney (Walt) Co. (Information & Entertainment)...................... 10,700 643,338
Eastman Kodak Co. (Materials)........................................ 14,200 965,600
Enron Corp. (Energy)................................................. 15,000 562,500
Federal National Mortgage Association (Finance)...................... 6,200 678,900
Federated Department Stores, Inc. (Consumer Discretionary)+.......... 31,500 917,437
Fifth Third Bancorp (Finance)........................................ 10,000 731,250
First Chicago Corp. (Finance)........................................ 18,200 1,264,900
FPL Group, Inc. (Utilities)+......................................... 37,000 1,604,875
General Electric Co. (Industrial & Commercial)....................... 22,300 1,499,675
General Instrument Corp. (Information Technology)+................... 27,100 694,438
General Motors Corp., Class E (Information Technology)............... 17,600 888,800
Gillette Co. (Consumer Staples)...................................... 17,400 902,625
Goodyear Tire & Rubber Co. (Consumer Discretionary).................. 31,100 1,317,862
Houston Industries, Inc. (Utilities)................................. 34,000 1,555,500
Illinois Central Corp. (Industrial & Commercial)..................... 5,400 218,700
Intel Corp. (Information Technology)................................. 28,200 1,716,675
International Business Machines Corp. (Information Technology)....... 10,800 1,043,550
ITT Corp. (Finance).................................................. 4,000 490,500
Lilly (Eli) & Co. (Healthcare)....................................... 16,900 1,681,550
Lowe's Cos., Inc. (Consumer Discretionary)........................... 30,100 948,150
May Department Stores Co. (Consumer Discretionary)................... 16,340 712,833
MBNA Corp. (Finance)................................................. 15,200 613,700
McDonald's Corp. (Consumer Staples).................................. 19,400 865,725
Merrill Lynch & Co., Inc. (Finance).................................. 16,160 898,900
Morton International, Inc. (Materials)............................... 19,000 657,875
Motorola, Inc. (Information Technology).............................. 6,900 422,625
National Semiconductor Corp. (Information Technology)+............... 41,100 878,512
NationsBank Corp. (Finance).......................................... 16,340 1,166,267
Pep Boys-Manny, Moe & Jack (Consumer Discretionary).................. 1,300 34,450
PepsiCo, Inc. (Consumer Staples)..................................... 33,000 1,823,250
Philip Morris Cos., Inc. (Consumer Staples).......................... 21,700 1,904,175
PMI Group, Inc. (Finance)............................................ 11,000 522,500
Republic New York Corp. (Finance).................................... 8,500 535,500
</TABLE>
---------------------
53
<PAGE> 106
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (continued)
Rohm & Haas Co. (Materials).......................................... 18,530 $ 1,116,432
Schering-Plough Corp. (Healthcare)................................... 26,200 1,503,225
Transport Holdings, Inc. (Finance)................................... 100 3,925
Travelers, Inc. (Finance)............................................ 31,500 1,874,250
U.S. HealthCare, Inc. (Healthcare)................................... 30,000 1,365,000
Union Carbide Corp. (Materials)...................................... 29,900 1,184,787
United Healthcare Corp. (Healthcare)................................. 7,900 496,713
Value Health, Inc. (Healthcare)+..................................... 14,700 369,338
Wendy's International, Inc. (Consumer Staples)....................... 44,400 915,750
Western Atlas, Inc. (Energy)+........................................ 11,300 540,988
WMX Technologies, Inc. (Industrial & Commercial)..................... 31,400 926,300
------------
59,900,283
------------
TOTAL COMMON STOCK (cost $145,786,621)............................... 157,038,603
------------
PREFERRED STOCK--0.9%
----------------------------------------------------------------------------------------------------
BRAZIL--0.3%
Dixie Toga SA (Industrial & Commercial).............................. 139,000 109,347
Klabin Fabricadora (Materials)....................................... 265,625 255,699
Sider Riograndense (Materials)....................................... 7,000,000 115,930
------------
480,976
------------
GERMANY--0.6%
Henkel KGAA (Consumer Staples)....................................... 1,860 697,034
KSB Kl Schanz Beck (Finance)......................................... 2,270 233,074
------------
930,108
------------
TOTAL PREFERRED STOCK (cost $1,672,720).............................. 1,411,084
------------
RIGHTS--0.0%+
----------------------------------------------------------------------------------------------------
BRAZIL--0.0%
Dixie Toga SA (Industrial & Commercial) (1) (cost $0)................ 16,623 0
------------
WARRANTS--0.0%+
----------------------------------------------------------------------------------------------------
MALAYSIA--0.0%
Development & Commercial Bank Bhd (Finance).......................... 32,000 29,263
Ta Enterprises Bhd (Utilities)....................................... 50,000 34,292
------------
TOTAL WARRANTS (cost $5,070)......................................... 63,555
------------
TOTAL INVESTMENT SECURITIES (cost $147,464,411)...................... 158,513,242
------------
PRINCIPAL
SHORT-TERM SECURITIES--6.2% AMOUNT
----------------------------------------------------------------------------------------------------
TIME DEPOSIT--6.2%
Cayman Island Time Deposit with State Street Bank & Trust Co.
5.50% due 12/01/95 (cost $10,230,000).............................. $10,230,000 10,230,000
------------
TOTAL INVESTMENTS--
(cost $157,694,411) 101.8% 168,743,242
Liabilities in excess of other assets-- (1.8) (2,991,545)
------ ------------
NET ASSETS-- 100.0% $165,751,697
====== ==============
</TABLE>
-----------------------------
+ Non-income producing securities
(1) Fair valued security; see Note 2
ADR--American Depositary Receipt
GDR--Global Depositary Receipt
GDS--Global Depositary Shares
- ---------------------
54
<PAGE> 107
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
------------------------------------------------------------------------
<S> <C> <C> <C>
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
<CAPTION>
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DEM 3,000,000 USD 2,126,604 01/31/96 $ 45,720
*GBP 900,000 USD 1,415,700 12/29/95 37,868
JPY 250,000,000 USD 2,520,415 01/31/96 39,937
----------------
123,525
----------------
<CAPTION>
GROSS UNREALIZED
DEPRECIATION
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
JPY 125,000,000 USD 1,229,770 01/31/96 $ (10,469)
JPY 160,000,000 USD 1,565,926 01/31/96 (21,581)
JPY 125,000,000 USD 1,219,631 01/31/96 (20,608)
*USD 1,427,670 GBP 900,000 12/29/95 (49,838)
----------------
(102,496)
----------------
Net Unrealized Appreciation................ $ 21,029
==============
</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.
DEM--Deutsche Mark
GBP--Pound Sterling
JPY--Japanese Yen
USD--United States Dollar
See Notes to Financial Statements
---------------------
55
<PAGE> 108
- ---------------------
SUNAMERICA SERIES TRUST
INTERNATIONAL DIVERSIFIED
EQUITIES PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1995
<TABLE>
<CAPTION>
COMMON STOCK--90.3% SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
AUSTRALIA--1.9%
Amcor Ltd. (Materials)............................................... 6,000 $ 43,640
Boral Ltd. (Industrial & Commercial)................................. 11,000 26,043
Brambles Industries. Ltd. (Industrial & Commercial).................. 1,700 18,547
Broken Hill Proprietary Co. (Energy)................................. 13,937 189,495
Coca-Cola Amatil Ltd. (Consumer Staples)............................. 3,529 28,548
Cochlear Ltd. (Information Technology)(1)............................ 7,800 14,472
Coles Myer Ltd. (Consumer Discretionary)............................. 10,544 33,962
CRA Ltd. (Materials)................................................. 4,400 69,687
CSR Ltd. (Industrial & Commercial)................................... 7,800 24,950
Fosters Brewing Group (Consumer Staples)............................. 13,800 22,635
General Property Trust (Real Estate)................................. 6,220 10,710
Goodman Fielder Ltd. (Consumer Staples).............................. 14,000 14,027
ICI Australia Ltd. (Materials)....................................... 2,500 18,461
Lend Lease Corp. Ltd. (Real Estate).................................. 1,814 25,095
M.I.M. Holdings Ltd. (Materials)..................................... 11,067 15,031
National Australia Bank Ltd. (Finance)............................... 10,369 90,346
Newcrest Mining Ltd. (Materials)..................................... 2,380 10,722
News Corp. Ltd. (Information & Entertainment)........................ 15,697 82,248
North Ltd. (Materials)............................................... 5,827 16,347
Pacific Dunlop Ltd. (Industrial & Commercial)........................ 7,800 18,640
Renison Goldfields Consolidated Ltd. (Materials)..................... 473 1,176
Renison Goldfields Consolidated Ltd. nonconvertible (Materials)...... 2,060 9,479
Santos Ltd. (Energy)................................................. 5,200 13,739
Southcorp Holdings Ltd. (Industrial & Commercial).................... 4,600 10,208
TNT Ltd. (Industrial & Commercial)................................... 4,600 6,418
Western Mining Corp. Holdings Ltd. (Materials)....................... 7,600 50,934
Westfield Trust (Finance)............................................ 320 556
Westfield Trust (Real Estate)........................................ 7,300 12,732
Westpac Banking Corp. (Finance)...................................... 13,500 55,908
-----------
934,756
-----------
BELGIUM--1.9%
Bekaert SA (Industrial & Commercial)................................. 30 23,058
Cimenteries CBR Cementbedrijven (Industrial & Commercial)............ 75 29,389
Delhaize Freres & Cie Le Lion (Consumer Discretionary)............... 1,000 41,776
Electrabel (Utilities)............................................... 850 193,559
Fortis AG (Finance).................................................. 600 69,626
Fortis AG (Finance).................................................. 19 2,205
Generale de Banque Belge Pour l'Etranger SA (Finance)................ 265 89,136
Groupe Bruxelles Lambert SA (Industrial & Commercial)................ 400 52,069
Kredietbank SA (Finance)............................................. 250 63,908
Petrofina SA (Energy)................................................ 400 118,533
Royale Belge SA (Finance)............................................ 250 45,913
Solvay SA (Materials)................................................ 175 90,208
Tractebel Investor International (Industrial & Commercial)........... 225 84,763
Union Miniere SA (Energy)............................................ 450 27,851
-----------
931,994
-----------
FRANCE--4.8%
Accor SA (Information & Entertainment)............................... 400 48,572
Air Liquide (L') (Materials)......................................... 550 88,498
Alcatel Alsthom (Information Technology)............................. 1,550 129,143
</TABLE>
- ---------------------
56
<PAGE> 109
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
--------------------------------------------------------------------------------------------------
<S> <C> <C>
FRANCE (continued)
AXA SA (Finance)..................................................... 1,350 $ 80,776
Banque Nationale de Paris (Finance).................................. 1,700 75,283
Carrefour (Consumer Discretionary)................................... 230 126,925
Cie de St. Gobain (Materials)........................................ 950 109,648
Cie de Suez (Finance)................................................ 1,400 52,488
Cie Financiere de Paribas (Finance).................................. 1,050 58,302
Cie Generale des Eaux (Industrial & Commercial)...................... 1,000 97,305
Compagnie Bancaire SA (Finance)...................................... 400 43,523
Compagnie UAP SA (Finance)........................................... 2,500 64,723
Groupe Danone (Consumer Staples)..................................... 850 133,023
Havas SA (Industrial & Commercial)................................... 600 44,124
L' Oreal (Consumer Staples).......................................... 700 173,369
Lafarge SA (Materials)............................................... 1,050 66,697
LVMH Moet Hennessy Louis Vuitton (Consumer Staples).................. 850 161,807
Lyonnaise des Eaux SA (Multi-industry)............................... 700 67,047
Michelin SA, Class B (Consumer Discretionary)........................ 1,350 54,860
Peugeot SA (Consumer Discretionary).................................. 450 58,161
Pinault Printemps Redoute (Consumer Discretionary)................... 250 47,089
Promodes (Consumer Discretionary).................................... 200 44,204
Rhone Poulenc SA (Materials)......................................... 2,900 62,062
Sagem (Industrial & Commercial)...................................... 40 21,361
Schneider SA (Industrial & Commercial)............................... 1,250 45,987
Sefimeg (Real Estate)................................................ 350 24,196
Societe Generale (Finance)........................................... 750 87,617
Societe Nationale Elf Aquitaine (Energy)............................. 2,200 154,117
Thomson CSF (Industrial & Commercial)................................ 1,200 26,330
Total SA (Energy).................................................... 1,950 119,958
-----------
2,367,195
-----------
GERMANY--5.1%
Allianz AG Holding (Finance)......................................... 204 393,951
AMB Aachener Und Muenchner (Finance)................................. 50 32,670
Asko Deutsche Kaushaus AG (Consumer Discretionary)................... 50 23,335
BASF AG (Materials).................................................. 500 109,590
Bayer AG (Materials)................................................. 550 143,100
Bayerische Hypotheken Und Bank AG (Finance).......................... 2,050 50,743
Bayerische Vereinsbank AG (Finance).................................. 2,000 57,734
Bilfinger & Berger Bau AG (Consumer Discretionary)................... 50 19,429
Daimler-Benz AG (Consumer Discretionary)............................. 350 172,181
Deutsche Bank AG (Finance)........................................... 3,500 164,195
Dresdner Bank AG (Finance)........................................... 3,300 88,415
Hochtief AG (Consumer Discretionary)................................. 100 44,942
Karstadt AG (Consumer Discretionary)................................. 100 39,480
Kaufhof Holding AG (Consumer Discretionary).......................... 50 15,142
Linde AG (Industrial & Commercial)................................... 50 29,316
Lufthansa AG (Industrial & Commercial)............................... 300 39,826
Man AG (Industrial & Commercial)..................................... 100 28,245
Mannesmann AG (Industrial & Commercial).............................. 300 96,598
Merck Kgaa (Healthcare).............................................. 1,200 49,177
Munchener Ruckversicherungs (Finance)................................ 50 92,063
Preussag AG (Multi-industry)......................................... 150 43,165
RWE AG (Utilities)................................................... 250 90,835
SAP AG (Materials)................................................... 475 75,866
Schering AG (Consumer Staples)....................................... 550 37,363
Siemens AG (Industrial & Commercial)................................. 400 208,947
Thyssen AG (Materials)............................................... 250 46,221
Veba AG (Utilities).................................................. 3,700 150,937
</TABLE>
---------------------
57
<PAGE> 110
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
--------------------------------------------------------------------------------------------------
<S> <C> <C>
GERMANY (continued)
Viag AG (Multi-industry)............................................. 150 $ 59,816
Volkswagen AG (Consumer Discretionary)............................... 250 81,069
-----------
2,484,351
-----------
HONG KONG--8.2%
Applied International Holdings Ltd. (Information & Entertainment).... 42,000 4,561
Bank of East Asia Ltd. (Finance)..................................... 21,390 77,431
Cathay Pacific Airways Ltd. (Industrial & Commercial)................ 82,000 122,445
Cheung Kong Holdings Ltd. (Real Estate).............................. 58,000 329,933
China Light & Power Co., Ltd. (Utilities)............................ 49,500 232,944
Chinese Estates Ltd. (Real Estate)................................... 52,000 34,959
Hang Seng Bank Ltd. (Finance)........................................ 51,800 452,042
Hong Kong & China Gas Co., Ltd. (Utilities).......................... 46,600 76,212
Hong Kong Telecommunications, Ltd. (Information Technology).......... 304,000 516,826
Hongkong & Shanghai Hotels Ltd. (Information & Entertainment)........ 49,000 61,766
Hopewell Holdings Ltd. (Real Estate)................................. 120,000 67,874
Hutchison Whampoa Ltd. (Multi-industry).............................. 96,000 542,373
Hysan Development Co., Ltd. (Real Estate)............................ 25,000 65,127
Johnson Electric Holdings Ltd. (Industrial & Commercial)............. 12,000 24,823
Miramar Hotel & Investment Co., Ltd. (Information & Entertainment)... 19,000 37,460
New World Development Co., Ltd. (Real Estate)........................ 45,106 188,357
Shun Tak Holdings Ltd. (Industrial & Commercial)..................... 50,000 33,937
South China Morning Post (Holdings) Ltd. (Information &
Entertainment)..................................................... 92,000 55,010
Sun Hung Kai Properties Ltd. (Real Estate)........................... 60,000 482,876
Swire Pacific Ltd. (Multi-industry).................................. 48,000 363,030
Wharf Holdings Ltd. (Real Estate).................................... 59,000 197,178
Wing Lung Bank Ltd. (Finance)........................................ 4,240 24,119
-----------
3,991,283
-----------
INDONESIA--2.7%
Bank Dagang Nasional (Finance)....................................... 77,875 64,796
Barito Pacific Timber (Materials).................................... 251,000 184,114
Gadjah Tunggal (Consumer Discretionary).............................. 143,000 81,410
Hanjaya Mandala Sampoerna (Consumer Staples)......................... 80,500 807,291
Jakarta International Hotel & Development (Industrial &
Commercial)........................................................ 69,500 82,177
Matahari Putra Prima (Consumer Discretionary)........................ 30,750 56,895
Pan Brothers Textiles (Consumer Discretionary)....................... 5,000 1,588
Sinar Mas Agro Resources Corp. (Multi-industry)...................... 37,500 22,170
United Tractors (Industrial & Commercial)............................ 25,500 46,343
-----------
1,346,784
-----------
ITALY--2.3%
Acciaierie & Ferriere Lombarde (Materials)........................... 1,000 1,963
Assicurazione Generali SpA (Finance)................................. 9,000 205,138
Banca Commerciale Italiana SpA (Finance)............................. 19,000 36,119
Banco Ambrosiano Veneto SpA (Finance)................................ 7,000 17,290
Benetton Group SpA (Consumer Discretionary).......................... 2,000 23,043
Credito Italiano SpA (Finance)....................................... 25,000 25,748
Edison SpA (Utilities)............................................... 7,000 27,971
Fiat SpA (Consumer Discretionary).................................... 35,000 105,711
Fiat SpA nonconvertible (Consumer Discretionary)..................... 9,000 14,942
Finanziaria di Sviluppo SpA (Multi-industry)......................... 5,000 8,270
Gilardini SpA (Industrial & Commercial).............................. 5,000 6,175
Istituto Bancario San Paolotorno (Finance)........................... 9,000 48,963
Istituto Mobiliare Italiano (Finance)................................ 6,700 38,021
Istituto Nazionale Delle Asazioni SpA (Finance)...................... 44,500 53,428
Italcementi Fabbriche SpA (Materials)................................ 3,500 18,844
Italgas-Societa Itailiana per il Gas SpA (Utilities)................. 8,000 20,511
</TABLE>
- ---------------------
58
<PAGE> 111
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
--------------------------------------------------------------------------------------------------
<S> <C> <C>
ITALY (continued)
La Rinascente Per L'Eserciz Grandi Magazzini SpA (Consumer
Discretionary)..................................................... 3,000 $ 16,809
Mediobanca Banca di Creditonziar (Finance)........................... 6,000 38,082
Montedison SpA (Multi-industry)...................................... 60,000 37,219
Montedison SpA nonconvertible (Multi-industry)....................... 10,000 5,403
Olivetti ING C, & Co. (Information Technology)....................... 20,000 13,257
Pirelli SpA (Consumer Discretionary)................................. 20,000 24,325
R.A.S (Finance)...................................................... 50 262
Riunione Adriatica de Sicur (Finance)................................ 3,250 33,279
S.A.I Societa Assicuratrice Industriale SpA (Finance)................ 2,000 19,072
Sirti SpA (Consumer Discretionary)................................... 2,500 14,476
SME STA Meridionale Finanzi SpA (Consumer Discretionary)............. 4,457 9,783
SNIA BPD SpA (Multi-industry)........................................ 10,000 7,817
Telecom Italia Mobile SPA (Information Technology)................... 75,200 121,323
Telecom Italia SpA nonconvertible (Information Technology)........... 15,000 16,555
Telecom Italia SpA (Information Technology).......................... 75,000 102,006
-----------
1,111,805
-----------
JAPAN--33.3%
Ajinomoto Co., Inc. (Consumer Staples)............................... 17,000 183,784
Aoyama Trading Co. Ltd. (Consumer Discretionary)..................... 1,000 28,796
Asahi Bank Ltd. (Finance)............................................ 15,000 173,956
Asahi Chemical Industry Co., Inc. (Materials)........................ 42,000 313,710
Asahi Glass Co. Ltd. (Materials)..................................... 17,000 187,125
Bank of Tokyo Ltd. (Finance)......................................... 17,000 277,346
Bank of Yokohama Ltd. (Finance)...................................... 12,000 89,042
Bridgestone Corp. (Industrial & Commercial).......................... 11,000 162,162
Dai Nippon Printing Co. Ltd. (Industrial & Commercial)............... 17,000 297,396
Dai-Ichi Kangyo Bank Ltd. (Finance).................................. 28,000 522,850
Daiei, Inc. (Consumer Discretionary)................................. 7,000 80,491
Daishowa Paper Manufacturing Co. Ltd. (Materials).................... 3,000 24,472
Daiwa House Industry Co. Ltd. (Consumer Discretionary)............... 9,000 134,447
Daiwa Securities Co. Ltd. (Finance).................................. 13,000 180,147
Ebara Corp. (Industrial & Commercial)................................ 4,000 56,609
Fanuc Ltd. (Information Technology).................................. 3,900 165,966
Fuji Bank Ltd. (Finance)............................................. 26,000 541,720
Fuji Photo Film Co. Ltd. (Consumer Staples).......................... 10,000 247,666
Fujitsu Ltd. (Information Technology)................................ 19,000 224,079
Hitachi Ltd. (Information Technology)................................ 17,000 172,089
Honda Motor Co. Ltd. (Consumer Discretionary)........................ 12,000 217,003
Industrial Bank of Japan Ltd. (Finance).............................. 22,000 631,351
Japan Airlines Co. Ltd. (Information & Entertainment)................ 17,000 108,767
Japan Energy Corp. (Energy).......................................... 13,000 40,246
Jusco Co. Ltd. (Consumer Discretionary).............................. 5,000 119,902
Kajima Corp. (Consumer Discretionary)................................ 12,000 117,464
Kansai Electric Power Co., Inc. (Utilities).......................... 12,635 299,266
KAO Corp. (Consumer Staples)......................................... 17,000 208,845
Kawasaki Steel Corp. (Materials)..................................... 38,000 134,821
Kirin Brewery Co. Ltd. (Consumer Staples)............................ 17,000 180,442
Kobe Steel Ltd. (Materials).......................................... 47,000 134,418
Kubota Ltd. (Industrial & Commercial)................................ 34,000 223,548
Kumagai Gumi Co. Ltd. (Consumer Discretionary)....................... 8,000 31,607
Kyocera Corp. (Information Technology)............................... 3,000 237,346
Marubeni Corp. (Consumer Discretionary).............................. 43,000 228,206
Marui Co. Ltd. (Consumer Discretionary).............................. 6,000 112,039
Matsushita Electric Industrial Co. Ltd. (Consumer Discretionary)..... 18,000 267,125
Mitsubishi Corp. (Consumer Discretionary)............................ 21,000 251,794
Mitsubishi Electric Corp. (Information Technology)................... 23,000 170,889
Mitsubishi Estate Co. Ltd. (Real Estate)............................. 16,000 180,835
</TABLE>
---------------------
59
<PAGE> 112
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
--------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (continued)
Mitsubishi Heavy Industrial Ltd. (Industrial & Commercial)........... 52,000 $ 414,467
Mitsubishi Trust & Banking Corp (Finance)............................ 12,000 183,980
Mitsui Fudosan Co. Ltd. (Real Estate)................................ 11,000 136,216
Mitsui Trust & Banking Co. Ltd. (Finance)............................ 14,000 131,263
Mitsukoshi Ltd. (Consumer Discretionary)............................. 7,000 61,779
Mochida Pharmaceutical Co. Ltd. (Healthcare)......................... 1,000 13,268
NEC Corp. (Information Technology)................................... 14,000 178,870
Nippon Express Co. Ltd. (Industrial & Commercial).................... 17,000 147,528
Nippon Oil Co. Ltd. (Energy)......................................... 26,000 143,096
Nippon Steel Corp. (Materials)....................................... 51,000 175,430
Nippondenso Co. Ltd. (Industrial & Commercial)....................... 12,000 221,720
Nissan Motor Co. Ltd. (Consumer Discretionary)....................... 24,000 176,668
NKK Corp. (Materials)................................................ 54,000 148,600
Nomura Securities International, Inc. (Finance)...................... 17,000 334,152
Odakyu Electric Railway Co. Ltd. (Industrial & Commercial)........... 31,000 219,361
Pioneer Electronic Corp. (Consumer Staples).......................... 3,000 52,187
Sakura Bank Ltd. (Finance)........................................... 29,000 313,514
Sankyo Co. Ltd. (Healthcare)......................................... 5,000 111,548
Sanyo Electric Co. Ltd. (Consumer Staples)........................... 25,000 130,221
Sega Enterprises Ltd. (Consumer Discretionary)....................... 1,300 70,270
Sekisui Chemical Co. Ltd. (Materials)................................ 7,000 90,123
Sekisui House Ltd. (Consumer Discretionary).......................... 9,000 105,258
Seven-Eleven Japan Co. Ltd. (Consumer Discretionary)................. 4,000 276,757
Sharp Corp. (Consumer Staples)....................................... 7,000 99,066
Shimizu Construction Co. (Consumer Discretionary).................... 9,000 91,990
Shiseido Co. Ltd. (Healthcare)....................................... 5,000 53,071
Sony Corp. (Consumer Discretionary).................................. 4,000 212,285
Sumitomo Chemical Co. Ltd. (Materials)............................... 26,000 129,297
Sumitomo Corp. (Consumer Discretionary).............................. 13,000 129,042
Sumitomo Metal Industrial (Materials)................................ 40,000 121,474
Sumitomo Metal Mining Co. Ltd. (Materials)........................... 7,000 61,160
Sumitomo Trust & Banking Co. Ltd. (Finance).......................... 29,000 558,624
Taisei Corp. (Consumer Discretionary)................................ 29,000 189,248
Taisho Pharmaceutical Co. Ltd. (Healthcare).......................... 5,000 94,349
Takeda Chemical Industries Ltd. (Healthcare)......................... 17,000 253,956
Tobu Railway Co. Ltd. (Industrial & Commercial)...................... 10,000 59,263
Tokai Bank Ltd. (Finance)............................................ 23,000 280,295
Tokio Marine & Fire Insurance Co. Ltd. (Finance)..................... 17,000 193,808
Tokyo Electric Power Co., Inc. (Utilities)........................... 15,173 393,678
Tokyo Gas Co. Ltd. (Utilities)....................................... 34,000 119,961
Tokyu Corp. (Industrial & Commercial)................................ 14,000 97,278
Toray Industries, Inc. (Materials)................................... 20,000 130,123
Tostem Corp. (Materials)............................................. 4,000 121,867
Toto Ltd. (Materials)................................................ 5,000 67,813
Toyo Seikan Kaisha Ltd. (Materials).................................. 3,000 91,106
Toyota Motor Corp. (Consumer Discretionary).......................... 35,000 691,401
Yamaichi Securities Co. (Finance).................................... 14,000 88,609
Yamanouchi Pharmaceutical Co. Ltd. (Healthcare)...................... 5,000 107,617
Yasuda Trust & Banking Co. Ltd. (Finance)............................ 14,000 67,420
-----------
16,299,844
-----------
MALAYSIA--1.7%
AMMB Holdings Bhd (Finance).......................................... 2,000 20,694
Amsteel Corp. (Materials)............................................ 11,000 7,458
Amsteel Corp. Bhd (Materials)........................................ 5,000 3,390
Aokam Perdana Bhd (Materials)........................................ 2,000 2,933
Berjaya Group Bhd (Multi-industry)................................... 7,000 4,249
Development & Commercial Bank Holdings Bhd (Finance)................. 9,000 23,768
Edaran Otomobil Nasional Bhd (Consumer Discretionary)................ 2,000 14,348
</TABLE>
- ---------------------
60
<PAGE> 113
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
--------------------------------------------------------------------------------------------------
<S> <C> <C>
MALAYSIA (continued)
Golden Hope Plantations Bhd (Materials).............................. 12,000 $ 19,204
Guinness Anchor Bhd (Consumer Staples)............................... 4,000 6,937
Highlands & Lowlands Bhd (Materials)................................. 5,000 7,174
Hong Leong Properties Bhd (Real Estate).............................. 10,000 10,367
Hume Industries (Materials).......................................... 3,000 13,480
Idris Hydraulic (Finance)............................................ 6,000 7,142
Kuala Lumpur Kepong (Materials)...................................... 4,000 11,510
Land & General Bhd (Materials)....................................... 4,000 7,962
Landmarks Bhd (Information & Entertainment).......................... 4,000 4,982
Leader Universal Holdings Bhd (Industrial & Commercial).............. 4,000 10,642
Magnum Corp. Bhd (Information & Entertainment)....................... 8,000 15,388
Malayan Banking Bhd (Finance)........................................ 10,000 79,227
Malayan Cement Bhd (Materials)....................................... 3,000 5,298
Malayan United Industries Bhd (Multi-industry)....................... 6,000 4,564
Malaysia Mining Corp. Bhd (Materials)................................ 6,000 7,899
Malaysian Airlines System (Industrial & Commercial).................. 6,000 17,619
Malaysian International Shipping Corp. (Industrial & Commercial)..... 9,000 21,994
Malaysian Resources Corp. Bhd (Real Estate).......................... 6,000 7,615
Metroplex Bhd (Real Estate).......................................... 9,000 6,918
Mulpha International Bhd (Multi-industry)............................ 7,000 7,312
Multi Purpose Holding (Multi-industry)............................... 7,000 10,099
Nestle Bhd (Consumer Staples)........................................ 1,000 7,016
Oriental Holdings Bhd (Consumer Discretionary)....................... 2,000 9,381
Perlis Plantations Bhd (Materials)................................... 3,000 9,223
Perusahaan Otomobil Nasiona (Consumer Discretionary)................. 5,000 16,851
Public Bank Bhd (Finance)............................................ 10,000 18,605
Rashid Hussain Bhd (Finance)......................................... 4,000 9,933
Resorts World Bhd (Information & Entertainment)...................... 10,000 48,877
Rothmans of Pall Mall (Consumer Staples)............................. 2,000 15,294
Shell Refining Co. of Malaysia (Energy).............................. 3,000 9,105
Sime Darby Bhd (Multi-industry)...................................... 18,000 46,472
Tan Chong Motor Holdings Bhd (Consumer Discretionary)................ 8,000 8,041
Technology Resources Industries Bhd (Information Technology)......... 6,000 16,791
Telekom Malaysia Bhd (Information Technology)........................ 16,000 119,196
Tenaga Nasional Bhd (Utilities)...................................... 26,100 97,734
UMW Holdings Bhd (Industrial & Commercial)........................... 3,000 7,036
United Engineers Bhd (Industrial & Commercial)....................... 5,000 31,139
YTL Corp. Bhd (Consumer Discretionary)............................... 3,000 16,555
-----------
847,422
-----------
NETHERLANDS--4.2%
ABN AMRO Holdings NV (Finance)....................................... 3,300 146,934
Akzo NV (Materials).................................................. 875 98,885
Elsevier NV (Consumer Discretionary)................................. 11,600 158,315
Heineken NV (Consumer Staples)....................................... 400 70,104
Internationale Nederlanden Groep NV CVA (Finance).................... 2,900 189,835
KLM Royal Dutch Air (Industrial & Commercial)........................ 950 32,619
Koninklijke Ahold NV (Consumer Discretionary)........................ 1,200 31,643
Koninklijke KNP BT (Materials)....................................... 1,244 49,244
Koninlijke PTT Nederland NV (Information Technology)................. 5,328 189,851
Philips Electronics NV (Consumer Staples)............................ 3,700 145,551
Royal Dutch Petroleum Co. (Energy)................................... 5,600 720,361
Unilever NV CVA (Consumer Staples)................................... 1,650 218,057
-----------
2,051,399
-----------
NORWAY--1.8%
Aker AS (Multi-industry)............................................. 1,700 21,220
Bergesen D Y AS (Industrial & Commercial)............................ 2,200 45,250
Dyno Industrier AS (Materials)....................................... 1,000 22,138
Elkem AS (Materials)................................................. 2,100 23,905
</TABLE>
---------------------
61
<PAGE> 114
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
--------------------------------------------------------------------------------------------------
<S> <C> <C>
NORWAY (continued)
Hafslund Nycomed AS (Healthcare)..................................... 3,750 $ 98,917
Helikopter Service AS (Industrial & Commercial)...................... 750 8,537
Kvaerner Industrier AS (Industrial & Commercial)..................... 1,600 52,755
Leif Hoegh & Co. AS (Industrial & Commercial)........................ 1,300 18,983
Norsk Hydro AS (Energy).............................................. 9,000 366,698
Norske Skogindystrier AS (Materials)................................. 1,100 32,470
Orkla-Borregaard AS (Multi-industry)................................. 1,750 89,300
Petroleum Geo Services AS (Energy)................................... 1,000 19,548
Transocean AS (Energy)............................................... 1,450 25,043
Unistorabrand AS (Consumer Discretionary)............................ 10,800 58,672
Unitor AS (Industrial & Commercial).................................. 800 10,425
Vard AS (Information & Entertainment)................................ 3,000 2,591
-----------
896,452
-----------
PORTUGAL--0.3%
Banco Portugues do Atlantico SA (Finance)............................ 8,700 131,131
Companhia de Seguros Imperio (Finance)............................... 2,050 12,441
-----------
143,572
-----------
SINGAPORE--3.5%
Amcol Holdings Ltd. (Consumer Staples)............................... 9,000 21,822
City Developments Ltd. (Real Estate)................................. 24,000 165,048
Cycle & Carriage Ltd. (Consumer Discretionary)....................... 7,000 61,538
DBS Land Ltd. (Real Estate).......................................... 29,000 90,053
Development Bank of Singapore (Finance).............................. 12,000 140,376
First Capital Corp. Ltd. (Real Estate)............................... 8,000 21,553
Fraser & Neave Ltd. (Consumer Staples)............................... 8,000 95,285
Inchcape Bhd (Multi-industry)........................................ 6,000 18,291
Keppel Corp. Ltd. (Industrial & Commercial).......................... 19,000 156,257
NatSteel Ltd. (Materials)............................................ 9,000 18,504
Neptune Orient Lines Ltd. (Industrial & Commercial).................. 27,000 28,330
Overseas Chinese Banking Corp. Ltd. (Finance)........................ 17,000 203,687
Overseas Union Enterprise Ltd. (Information & Entertainment)......... 6,000 28,713
Robinson & Co., Ltd. (Consumer Discretionary)........................ 2,000 8,295
Shangri-La Hotel Ltd. (Information & Entertainment).................. 5,000 16,944
Singapore Airlines Ltd. (Information & Entertainment)................ 25,000 233,960
Singapore Press Holdings Ltd. (Information & Entertainment).......... 5,800 91,698
Straits Steamship Land Ltd. (Multi-industry)......................... 19,000 60,078
Straits Trading Co., Ltd. (Materials)................................ 13,000 29,309
United Industrial Corp. (Multi-industry)............................. 59,000 51,032
United Overseas Bank Ltd. (Finance).................................. 18,000 162,070
-----------
1,702,843
-----------
SPAIN--3.4%
Acerinox SA (Materials).............................................. 250 25,050
Acerinox SA (Materials).............................................. 12 1,202
Autopistas Concesionaria Espana SA (Industrial & Commercial)......... 4,200 46,343
Banco Bilbao Vizcaya SA (Finance).................................... 4,700 155,008
Banco Central Hispanoamericano SA (Finance).......................... 3,300 67,604
Banco de Santander SA (Finance)...................................... 1,100 51,316
Corporacion Bancaria de Espana (Argentaria) (Finance)................ 2,500 97,866
Corporacion Financiera Alba (Multi-industry)......................... 500 28,193
Corporacion Mapfre SA (Finance)...................................... 600 33,784
Empresa Nacional Celulos SA (Materials).............................. 450 7,685
Empresa Nacional de Electricidad SA (Utilities)...................... 5,000 268,549
Fomento Construcciones Y Contratas SA (Consumer Discretionary)....... 400 30,376
Gas Natural SDG SA (Utilities)....................................... 750 106,486
Iberdrola SA (Utilities)............................................. 17,800 150,193
Inmobiliaria Metropolitana Vasco Central SA (Real Estate)............ 550 18,028
Mapfre Vida SA (Finance)............................................. 13 733
</TABLE>
- ---------------------
62
<PAGE> 115
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
--------------------------------------------------------------------------------------------------
<S> <C> <C>
SPAIN (continued)
Portland Valderrivas SA (Materials).................................. 225 $ 14,093
Repsol SA (Energy)................................................... 6,100 192,272
Tabacalera SA (Consumer Staples)..................................... 850 31,930
Telefonica de Espana SA (Information Technology)..................... 18,800 259,300
Union Electrica-Fenosa SA (Utilities)................................ 6,400 34,686
Viscofan Industria Navarra (Materials)............................... 700 7,298
Zardoya Otis SA (Industrial & Commercial)............................ 200 20,770
-----------
1,648,765
-----------
SWITZERLAND--3.2%
Alusuisse-Lonza Holdings (Materials)................................. 25 20,268
BBC Brown Boveri Ltd. (Information Technology)....................... 50 57,422
Ciba-Geigy AG BR (Materials)......................................... 20 17,746
Ciba-Geigy AG (Materials)............................................ 130 115,900
CS Holding (Finance)................................................. 1,000 94,853
Fischer (Georg) AG (Consumer Staples)................................ 10 13,356
Gebrueder Sulzer AG (Industrial & Commercial)........................ 24 13,271
Holderbank Financiere Glarus (Finance)............................... 42 31,299
Nestle SA (Consumer Staples)......................................... 220 234,504
Roche Holding (Mortgage-related Securities).......................... 38 287,061
Roche Holding AG (Mortgage-related Securities)....................... 10 130,157
Sandoz Ltd. (Mortgage-related Securities)............................ 200 170,821
SGS Societe Generale de Surance Holding SA (Materials)............... 12 22,561
SMH Schweizerische Ges Fueroelektronik & Uhrenindustri (Information &
Entertainment)..................................................... 24 14,067
Swiss Bank Corp. BR (Finance)........................................ 150 59,719
Swiss Bank Corp. (Finance)........................................... 150 29,796
Swiss Reinsurance Co. (Finance)...................................... 50 55,934
Union Bank of Switzerland (Finance).................................. 120 125,359
Zuerich Versicherungs (Finance)...................................... 250 76,776
-----------
1,570,870
-----------
THAILAND--1.5%
Advanced Information Services (Information Technology)............... 4,300 68,363
Bangchak Petroleum PCL (Energy)...................................... 9,600 11,828
Bangkok Metropolitan Bank PCL (Finance).............................. 14,100 12,749
CMIC Finance & Security PCL (Finance)................................ 3,500 10,016
Dhana Siam Finance & Securities PCL (Finance)........................ 4,600 21,025
General Finance & Securities (Finance)............................... 2,450 9,835
Italian-Thai Development PCL (Energy)................................ 4,600 42,782
Jasmine International PCL (Information Technology)................... 6,200 34,006
Krung Thai Bank PCL (Finance)........................................ 25,800 95,366
National Finance & Securities PCL (Finance).......................... 3,200 13,609
National Petrochemical PCL (Materials)............................... 5,700 9,628
One Holding PCL (Multi-industry)..................................... 2,900 6,224
Phatra Thanakit Co. (Finance)........................................ 2,700 21,892
Phatra Thanakit PCL local (Finance).................................. 2,300 16,180
PTT Exploration & Production (Energy)................................ 5,700 53,013
Sahavirya Steel Industries (Materials)............................... 9,400 11,489
Shinawatra Computer & Communication PCL (Information Technology)..... 2,500 58,029
Shinawatra Satelite PCL (Industrial & Commercial).................... 6,400 10,111
Siam City Bank PCL local (Finance)................................... 10,000 9,837
Siam City Bank PCL (Finance)......................................... 12,100 13,105
Telecomasia Corp. PCL (Utilities).................................... 40,900 126,797
Thai Military Bank PCL local (Finance)............................... 4,300 13,843
Thai Military Bank PCL (Finance)..................................... 4,300 15,040
United Communication Industries (Information Technology)............. 4,300 51,272
-----------
736,039
-----------
</TABLE>
---------------------
63
<PAGE> 116
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
--------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM--10.5%
Abbey National PLC (Finance)......................................... 12,800 $ 125,903
Argyll Group PLC (Consumer Discretionary)............................ 9,900 47,136
Arjo Wiggins Appleton PLC (Materials)................................ 12,300 32,294
Barclays PLC (Finance)............................................... 10,401 125,315
Bass PLC (Consumer Staples).......................................... 6,900 72,835
BAT Industries PLC (Multi-industry).................................. 23,301 198,693
BOC Group PLC (Materials)............................................ 5,700 76,748
Boots Co. PLC (Consumer Discretionary)............................... 7,600 65,854
British Aerospace PLC (Industrial & Commercial)...................... 3,899 49,006
British Airways PLC (Industrial & Commercial)........................ 5,700 40,141
British Gas PLC (Utilities).......................................... 35,500 132,609
British Petroleum Co. PLC (Energy)................................... 45,600 359,173
British Telecommunications PLC (Information Technology).............. 45,000 259,377
BTR PLC (Multi-industry)............................................. 26,700 136,729
Cable & Wireless PLC (Information Technology)........................ 7,996 55,514
Commercial Union PLC (Finance)....................................... 4,700 46,374
General Accident PLC (Finance)....................................... 4,500 45,779
General Electric PLC (Industrial & Commercial)....................... 23,400 113,919
Glaxo Wellcome PLC (Consumer Staples)................................ 21,307 284,278
Grand Metropolitan PLC (Multi-industry).............................. 14,300 96,764
Great Universal Stores PLC (Consumer Discretionary).................. 2,300 21,690
Guinness PLC (Consumer Staples)...................................... 15,000 106,093
Hanson PLC (Multi-industry).......................................... 36,600 109,542
HSBC Holdings PLC (Finance).......................................... 12,700 188,692
Imperial Chemical Industries PLC (Materials)......................... 6,400 74,464
Kingfisher PLC (Consumer Staples).................................... 7,271 57,605
Ladbroke Group PLC (Information & Entertainment)..................... 17,900 39,187
Land Securities PLC (Real Estate).................................... 10,300 94,059
Lloyds Bank PLC (Finance)............................................ 10,932 145,269
Marks & Spencer PLC (Consumer Discretionary)......................... 21,100 142,616
MEPC PLC (Real Estate)............................................... 4,600 27,430
National Power PLC (Utilities)....................................... 8,100 57,166
Peninsular & Oriental Steam PLC (Industrial & Commercial)............ 6,596 49,051
Prudential Corp. PLC (Finance)....................................... 18,700 123,245
Rank Organisation PLC (Information & Entertainment).................. 6,600 41,629
Redland PLC (Materials).............................................. 15,600 91,231
Reed International PLC (Information & Entertainment)................. 7,600 121,586
Reuters Holdings PLC (Industrial & Commercial)....................... 12,300 116,089
RMC Group PLC (Materials)............................................ 7,275 115,551
Royal Bank of Scotland Group (Finance)............................... 10,200 87,134
Royal Insurance Holdings PLC (Finance)............................... 6,700 39,901
RTZ Corp. PLC (Materials)............................................ 8,900 127,737
Sainsbury (J.) PLC (Consumer Discretionary).......................... 13,000 76,523
Scottish Power PLC (Utilities)....................................... 7,600 43,864
SmithKline Beecham PLC (Healthcare).................................. 8,000 85,058
SmithKline Beecham PLC (Healthcare)(2)............................... 7,950 83,492
Tesco PLC (Consumer Discretionary)................................... 13,952 61,302
Thames Water PLC (Industrial & Commercial)........................... 4,100 34,679
Thorn EMI PLC (Consumer Discretionary)............................... 3,900 92,992
Trafalgar House PLC (Multi-industry)................................. 8,900 3,270
Unilever PLC (Consumer Staples)...................................... 7,900 153,174
Vodafone Group PLC (Information Technology).......................... 7,400 26,396
Zeneca Group PLC ADR (Healthcare).................................... 5,900 119,093
-----------
5,121,251
-----------
</TABLE>
- ---------------------
64
<PAGE> 117
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
--------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES--0.0%
United States Industries, Inc. (Multi-industry)...................... 169 $ 2,746
-----------
TOTAL COMMON STOCK (cost $43,375,684)................................ 44,189,371
-----------
PREFERRED STOCK--0.2%
--------------------------------------------------------------------------------------------------
GERMANY--0.2%
RWE AG (Utilities)................................................... 150 42,885
SAP AG (Materials)................................................... 300 47,335
-----------
90,220
-----------
ITALY--0.0%
Fiat SpA (Consumer Discretionary).................................... 11,000 19,122
-----------
TOTAL PREFERRED STOCK (cost $113,626)................................ 109,342
-----------
RIGHTS--0.0%+
--------------------------------------------------------------------------------------------------
GERMANY--0.0%
Munchener Ruckversicherungs (Finance)................................ 50 5,601
-----------
ITALY--0.0%
Olivetti ING C, & Co. (Information Technology)....................... 20,000 1,144
Riunione Adriatica di Sicur (Finance)................................ 250 907
-----------
2,051
-----------
TOTAL RIGHTS (cost $0)............................................... 7,652
-----------
WARRANTS--0.0%+
--------------------------------------------------------------------------------------------------
ITALY--0.0%
Riunione Adriatica di Sicur (Finance)................................ 150 264
-----------
MALAYSIA--0.0%
Hong Leong Properties (Real Estate)(1)............................... 500 0
-----------
TOTAL WARRANTS (cost $95)............................................ 264
-----------
TOTAL INVESTMENT SECURITIES (cost $43,489,405)....................... 44,306,629
-----------
PRINCIPAL
REPURCHASE AGREEMENT--6.0% AMOUNT
--------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--6.0%
Agreement with State Street Bank & Trust Co., bearing interest of
4.50% dated 11/30/95, to be repurchased 12/01/95 in the amount of
$2,940,368 and collateralized by $2,080,000 U.S. Treasury Bonds
12.00% due 5/15/05 (cost $2,940,000)............................... $2,940,000 2,940,000
-----------
TOTAL INVESTMENTS--
(cost $46,429,405) 96.5% 47,246,629
Other assets less liabilities-- 3.5 1,714,030
------ -----------
NET ASSETS-- 100.0% $48,960,659
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
(1) Fair valued security; see Note 2
(2) Consists of more than one class of securities traded together
as a unit; generally bonds with attached stocks or warrants
---------------------
65
<PAGE> 118
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
-----------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*BEF 20,412,000 USD 723,573 04/30/96 $ 36,994
BEF 13,440,000 USD 476,427 04/30/96 21,043
*CHF 867,740 USD 759,044 01/04/96 20,857
CHF 584,126 USD 510,956 01/04/96 12,325
DEM 2,397,696 USD 1,680,000 01/04/96 19,239
FRF 7,355,600 USD 1,480,000 01/04/96 6,544
JPY 248,004,000 USD 2,490,000 01/04/96 39,438
JPY 179,454,990 USD 2,127,000 04/30/96 324,044
JPY 251,101,200 USD 2,685,000 04/30/96 162,226
JPY 344,664,320 USD 4,326,149 04/30/96 863,362
JPY 170,938,250 USD 1,855,000 08/14/96 113,181
JPY 122,773,950 USD 1,253,672 08/30/96 141,328
*JPY 53,685,680 USD 673,851 04/30/96 146,227
NLG 1,602,870 USD 1,001,836 07/31/96 48,469
*NLG 686,280 USD 449,695 07/31/96 25,882
*USD 675,000 BEF 20,412,000 04/30/96 11,579
*USD 420,000 NLG 686,280 07/31/96 3,813
----------------
1,996,551
----------------
<CAPTION>
GROSS UNREALIZED
DEPRECIATION
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CHF 899,396 USD 740,000 02/28/96 $ (32,037)
*USD 765,000 CHF 867,740 01/04/96 (26,812)
*USD 652,000 JPY 53,685,680 04/30/96 (124,377)
USD 414,979 ESP 50,536,112 12/04/96 (4,966)
----------------
(188,192)
----------------
Net Unrealized Appreciation................. $1,808,359
==============
</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.
<TABLE>
<S> <C> <C>
BEF--Belgian Franc ESP--Spanish Peseta NLG--Netherlands Guilder
CHF--Swiss Franc FRF--French Franc USD--United States Dollar
DEM--Deutsche Mark JPY--Japanese Yen
</TABLE>
See Notes to Financial Statements
- ---------------------
66
<PAGE> 119
(This page intentionally left blank)
---------------------
67
<PAGE> 120
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1995
<TABLE>
<CAPTION>
CASH FIXED HIGH-YIELD WORLDWIDE
MANAGEMENT INCOME GLOBAL BOND BOND HIGH INCOME
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*.................. $ -- $28,718,327 $52,213,584 $77,635,215 $20,719,687
Short-term securities*............................ 92,708,313 189,622 8,281,000 -- --
Repurchase agreements (cost equals market)........ 973,000 8,212,000 -- -- 1,434,000
Cash.............................................. 799 153,943 395 20,910 60,425
Foreign currency.................................. -- -- 40 -- --
Receivables for--
Fund shares sold................................ 357,393 275,532 196,409 223,930 61,493
Dividends and accrued interest.................. 247,585 367,930 1,804,209 1,150,512 442,426
Sales of investments............................ -- 2,423,446 -- 4,251,771 252,146
Variation margin on futures contracts........... -- 10,158 -- -- --
Foreign currency contracts...................... -- -- -- -- --
Deferred organizational expenses.................. 15,584 8,602 8,603 8,325 1,798
Prepaid expenses.................................. 1,777 475 985 1,399 318
Unrealized appreciation on forward foreign
currency contracts.............................. -- -- 935,313 -- --
Due from adviser.................................. -- -- -- -- --
------------------------------------------------------------------------
94,304,451 40,360,035 63,440,538 83,292,062 22,972,293
------------------------------------------------------------------------
LIABILITIES:
Payables for--
Fund shares redeemed............................ 2,471,690 43,601 27,382 767,083 1,634
Purchases of investments........................ 1,006,937 10,803,012 3,253,872 -- 1,420,812
Management fees................................. 45,675 16,246 34,838 48,297 17,066
Variation margin on futures contracts........... -- -- -- -- --
Foreign currency contracts...................... -- -- -- -- --
Other accrued expenses............................ 48,956 22,656 35,975 303,015 17,701
Unrealized depreciation on forward foreign
currency contracts.............................. -- -- 329,427 -- --
Due to custodian bank............................. -- -- -- -- --
------------------------------------------------------------------------
3,573,258 10,885,515 3,681,494 1,118,395 1,457,213
------------------------------------------------------------------------
NET ASSETS........................................ $90,731,193 $29,474,520 $59,759,044 $82,173,667 $21,515,080
=======================================================================
Shares of beneficial interest outstanding
(unlimited shares authorized)................... 8,483,049 2,724,189 5,424,420 7,806,335 1,884,528
Net asset value per share......................... $10.70 $10.82 $11.02 $10.53 $11.42
=======================================================================
COMPOSITION OF NET ASSETS:
Capital paid in................................... $86,488,589 $28,058,530 $55,577,869 $83,135,134 $19,619,819
Accumulated undistributed net investment income
(loss).......................................... 4,234,947 1,219,884 3,620,109 7,410,940 1,431,913
Accumulated undistributed net realized gain (loss)
on investments, futures contracts and options
contracts....................................... 4,583 (355,354) (932,642) (9,037,804) 74,158
Unrealized appreciation on investments............ 3,074 511,571 916,086 665,397 389,190
Unrealized foreign exchange gain(loss) on other
assets
and liabilities................................. -- -- 577,622 -- --
Unrealized appreciation on futures contracts...... -- 39,889 -- -- --
------------------------------------------------------------------------
$90,731,193 $29,474,520 $59,759,044 $82,173,667 $21,515,080
========================================================================
---------------
* Cost
Investment securities............................ $ -- $28,206,756 $51,297,498 $76,969,818 $20,330,497
========================================================================
Short-term securities............................ $92,705,239 $ 189,622 $ 8,281,000 $ -- $ --
========================================================================
</TABLE>
See Notes to Financial Statements
- ---------------------
68
<PAGE> 121
SUNAMERICA SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1995
<TABLE>
<CAPTION>
BALANCED/
PHOENIX
INVESTMENT ASSET GROWTH- ALLIANCE
COUNSEL ALLOCATION INCOME GROWTH
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*............... $28,405,803 $187,514,184 $170,021,383 $159,610,648
Short-term securities*......................... 6,240,939 1,555,465 7,513,000 8,015,716
Repurchase agreements (cost equals market)..... --- 24,551,000 --- ---
Cash........................................... --- 508,600 985 72,387
Foreign currency............................... --- --- --- ---
Receivables for--
Fund shares sold............................. 100,774 1,282,427 359,840 1,945,004
Dividends and accrued interest............... 148,159 1,311,720 394,878 115,715
Sales of investments......................... 153,850 6,253,168 --- 655,070
Variation margin on futures contracts........ --- 33,671 --- ---
Foreign currency contracts................... --- --- --- ---
Deferred organizational expenses............... --- 8,603 8,325 8,325
Prepaid expenses............................... 365 3,235 2,651 2,337
Unrealized appreciation on forward foreign
currency contracts........................... --- --- --- ---
Due from advisor............................... --- --- --- ---
---------------------------------------------------------
35,049,890 223,022,073 178,301,062 170,425,202
---------------------------------------------------------
LIABILITIES:
Payables for--
Fund shares redeemed......................... 2,085 71,256 122,346 264,506
Purchases of investments..................... 1,879,526 22,926,295 6,748,269 2,140,913
Management fees.............................. 16,631 105,262 87,816 85,492
Variation margin on futures contracts........ --- --- --- 3,600
Foreign currency contracts................... --- --- --- ---
Other accrued expenses......................... 21,883 82,870 61,558 60,964
Unrealized depreciation on forward foreign
currency contracts........................... --- --- --- ---
Due to custodian bank.......................... 701,230 --- --- ---
---------------------------------------------------------
2,621,355 23,185,683 7,019,989 2,555,475
---------------------------------------------------------
NET ASSETS..................................... $32,428,535 $199,836,390 $171,281,073 $167,869,727
=========================================================
Shares of beneficial interest outstanding
(unlimited shares authorized)................ 2,598,706 15,689,067 12,490,023 10,739,380
Net asset value per share...................... $12.48 $12.74 $13.71 $15.63
=========================================================
COMPOSITION OF NET ASSETS:
Capital paid in................................ $29,191,071 $171,257,566 $139,333,338 $134,009,237
Accumulated undistributed net investment
income (loss)................................ 399,630 5,029,483 1,673,393 477,396
Accumulated undistributed net realized gain
(loss) on investments, futures contracts
and options contracts........................ 874,562 6,131,686 5,896,173 12,945,264
Unrealized appreciation on investments......... 1,963,272 17,322,705 24,378,169 20,341,080
Unrealized foreign exchange gain (loss) on
other assets and liabilities................. --- --- --- ---
Unrealized appreciation on futures contracts... --- 94,950 --- 96,750
---------------------------------------------------------
$32,428,535 $199,836,390 $171,281,073 $167,869,727
- ------------ =========================================================
* Cost
Investment securities.......................... $26,442,531 $170,194,711 $145,643,214 $139,269,571
=========================================================
Short-term securities.......................... $ 6,240,939 $ 1,552,233 $ 7,513,000 $ 8,015,713
=========================================================
</TABLE>
<TABLE>
<CAPTION>
GROWTH/
PHOENIX INTERNATIONAL
INVESTMENT PROVIDENT VENTURE GLOBAL DIVERSIFIED
COUNSEL GROWTH VALUE EQUITIES EQUITIES
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*............... $137,276,227 $111,437,200 $139,942,029 $158,513,242 $44,306,629
Short-term securities*......................... 14,211,761 --- 16,997,439 10,230,000 ---
Repurchase agreements (cost equals market)..... --- 2,633,000 --- --- 2,940,000
Cash........................................... --- 916 --- 2,965 12,807
Foreign currency............................... --- --- --- 351,092 27,361
Receivables for--
Fund shares sold............................. 906,183 328,870 1,182,040 226,762 275,200
Dividends and accrued interest............... 54,298 44,282 200,648 484,192 137,650
Sales of investments......................... 5,264,814 991,163 519,577 681,222 ---
Variation margin on futures contracts........ --- --- --- --- ---
Foreign currency contracts................... --- --- --- 2,032,562 ---
Deferred organizational expenses............... 8,901 8,325 --- 8,325 1,797
Prepaid expenses............................... 2,619 2,055 1,914 2,875 708
Unrealized appreciation on forward foreign
currency contracts........................... --- --- --- 123,525 1,996,551
Due from advisor............................... --- --- --- --- 23,550
-----------------------------------------------------------------------
157,724,803 115,445,811 158,843,647 172,656,762 49,722,253
-----------------------------------------------------------------------
LIABILITIES:
Payables for--
Fund shares redeemed......................... 39,618 40,945 18,383 41,395 25,020
Purchases of investments..................... 3,253,574 --- 2,658,822 4,475,831 424,485
Management fees.............................. 81,295 77,941 93,167 108,987 37,911
Variation margin on futures contracts........ --- --- --- --- ---
Foreign currency contracts................... --- --- --- 2,033,679 ---
Other accrued expenses......................... 62,530 50,886 61,907 142,677 85,986
Unrealized depreciation on forward foreign
currency contracts........................... --- --- --- 102,496 188,192
Due to custodian bank.......................... 4,377,303 --- 1,103,371 --- ---
-----------------------------------------------------------------------
7,814,320 169,772 3,935,650 6,905,065 761,594
------------------------------------------------------------------------
NET ASSETS..................................... $149,910,483 $115,276,039 $154,907,997 $165,751,697 $48,960,659
=======================================================================
Shares of beneficial interest outstanding
(unlimited shares authorized)................ 11,411,801 8,800,227 11,503,467 12,693,039 4,824,929
Net asset value per share...................... $13.14 $13.10 $13.47 $13.06 $10.15
=======================================================================
COMPOSITION OF NET ASSETS:
Capital paid in................................ $121,638,746 $ 90,389,835 $137,197,421 $149,050,688 $47,266,486
Accumulated undistributed net investment
income (loss)................................ 1,261,039 --- 889,057 1,468,646 (346,916)
Accumulated undistributed net realized gain
(loss) on investments, futures contracts
and options contracts........................ 10,537,220 (3,161,237) 1,620,396 4,154,885 (586,233)
Unrealized appreciation on investments......... 16,473,499 28,047,441 15,201,123 11,048,831 817,224
Unrealized foreign exchange gain (loss) on
other assets and liabilities................. (21) --- --- 28,647 1,810,098
Unrealized appreciation on futures contracts... --- --- --- --- ---
-----------------------------------------------------------------------
$149,910,483 $115,276,039 $154,907,997 $165,751,697 $48,960,659
- ------------ =======================================================================
* Cost
Investment securities.......................... $120,802,728 $ 83,389,759 $124,740,906 $147,464,411 $43,489,405
=======================================================================
Short-term securities.......................... $ 14,211,761 $ --- $ 16,997,439 $ 10,230,000 $ ---
=======================================================================
</TABLE>
------------------------------
69
<PAGE> 122
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1995
<TABLE>
<CAPTION>
WORLDWIDE
CASH FIXED GLOBAL HIGH-YIELD HIGH
MANAGEMENT INCOME BOND BOND INCOME
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
Income:
Dividends.............................................. $ -- $ -- $ -- $ -- $ --
Interest............................................... 4,772,033 1,423,770 3,341,934 8,087,552 1,691,603
----------------------------------------------------------
Total income *..................................... 4,772,033 1,423,770 3,341,934 8,087,552 1,691,603
----------------------------------------------------------
Expenses:
Management fees........................................ 438,400 144,546 365,313 478,203 143,765
Custodian fees......................................... 39,740 38,690 69,310 39,905 22,720
Auditing fees.......................................... 22,575 6,245 10,865 13,965 10,800
Reports to investors................................... 9,420 3,505 7,370 10,995 2,170
Amortization of organizational expenses................ 7,172 3,953 3,953 3,822 1,887
Legal fees............................................. 5,400 1,190 3,640 4,525 1,030
Trustees' fees......................................... 2,645 60 1,435 1,835 480
Interest expense....................................... -- -- -- 2,898 --
Other expenses......................................... 5,176 2,683 3,805 4,509 5,287
----------------------------------------------------------
Total expenses before reimbursement.................. 530,528 200,872 465,691 560,657 188,139
Expenses reimbursed by the investment adviser........ -- (1,770) -- -- (649)
----------------------------------------------------------
Net investment income (loss)............................. 4,241,505 1,224,668 2,876,243 7,526,895 1,504,113
----------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCIES:
Net realized gain (loss) on investments@............... 5,110 581,976 1,618,834 (3,711,235) 76,600
Net realized gain (loss) on futures and options
contracts............................................ -- 13,918 -- -- --
Net realized foreign exchange gain (loss) on other
assets and liabilities............................... -- -- 1,319,839 -- --
Change in unrealized appreciation/depreciation on
investments.......................................... 44,053 1,262,150 1,593,149 4,427,627 484,883
Change in unrealized foreign exchange gain (loss) on
other assets and liabilities......................... -- -- 1,814 -- --
Change in unrealized appreciation/depreciation on
futures contracts.................................... -- 39,889 -- -- --
----------------------------------------------------------
Net realized and unrealized gain on investments and
foreign currencies................................... 49,163 1,897,933 4,533,636 716,392 561,483
----------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..... $4,290,668 $3,122,601 $7,409,879 $8,243,287 $2,065,596
=============================================================
</TABLE>
70
<PAGE> 123
<TABLE>
<CAPTION>
BALANCED/ GROWTH/
PHOENIX PHOENIX
INVESTMENT ASSET GROWTH- ALLIANCE INVESTMENT
COUNSEL ALLOCATION INCOME GROWTH COUNSEL
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Income:
Dividends.............................................. $ 94,209 $2,163,433 $2,168,076 $1,029,948 $1,295,073
Interest............................................... 441,028 4,342,880 414,143 198,205 920,009
-------------------------------------------------------------
Total income *..................................... 535,237 6,506,313 2,582,219 1,228,153 2,215,082
-------------------------------------------------------------
Expenses:
Management fees........................................ 92,499 1,000,248 794,078 635,979 835,634
Custodian fees......................................... 34,395 94,115 41,745 44,345 49,400
Auditing fees.......................................... 11,565 34,670 28,795 29,030 23,975
Reports to investors................................... 3,690 32,210 21,810 20,110 20,325
Amortization of organizational expenses................ 360 3,953 3,822 3,822 3,822
Legal fees............................................. 765 9,435 7,210 6,185 7,990
Trustees' fees......................................... 405 4,680 3,640 2,915 3,710
Interest expense....................................... -- -- -- -- --
Other expenses......................................... 2,248 6,280 5,559 4,235 6,589
-------------------------------------------------------------
Total expenses before reimbursement.................. 145,927 1,185,591 906,659 746,621 951,445
Expenses reimbursed by the investment adviser........ (17,031) -- -- -- --
-------------------------------------------------------------
Net investment income (loss)............................. 406,341 5,320,722 1,675,560 481,532 1,263,637
-------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCIES:
Net realized gain (loss) on investments@............... 875,469 6,792,943 6,546,892 13,305,824 19,383,952
Net realized gain (loss) on futures and options
contracts............................................ -- 37,040 -- 47,744 --
Net realized foreign exchange gain (loss) on other
assets and liabilities............................... -- -- 76 -- 701
Change in unrealized appreciation/depreciation on
investments.......................................... 1,971,928 20,689,780 26,098,737 21,063,685 14,865,880
Change in unrealized foreign exchange gain (loss) on
other assets and liabilities......................... -- -- -- -- (21)
Change in unrealized appreciation/depreciation on
futures contracts.................................... -- 94,950 -- 96,750 --
-------------------------------------------------------------
Net realized and unrealized gain on investments and
foreign currencies................................... 2,847,397 27,614,713 32,645,705 34,514,003 34,250,512
-------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..... $3,253,738 $32,935,435 $34,321,265 $34,995,535 $35,514,149
==============================================================
</TABLE>
<PAGE> 124
<TABLE>
<CAPTION>
INTERNATIONAL
PROVIDENT VENTURE GLOBAL DIVERSIFIED
GROWTH VALUE EQUITIES EQUITIES
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Income:
Dividends.............................................. $ 583,781 $1,048,621 $2,679,270 $ 561,748
Interest............................................... 252,521 489,585 397,172 135,681
-----------------------------------------------------------------------------------------------------------------
Total income *..................................... 836,302 1,538,206 3,076,442 697,429
-----------------------------------------------------------------------------------------------------------------
Expenses:
Management fees........................................ 785,809 504,014 1,185,831 283,908
Custodian fees......................................... 40,845 79,040 362,550 279,268
Auditing fees.......................................... 21,070 31,700 26,775 15,720
Reports to investors................................... 16,235 19,075 25,305 6,025
Amortization of organizational expenses................ 3,822 360 3,822 1,887
Legal fees............................................. 6,000 4,185 9,505 1,455
Trustees' fees......................................... 2,685 1,975 4,575 920
Interest expense....................................... -- -- -- --
Other expenses......................................... 5,094 3,098 7,879 5,487
-----------------------------------------------------------------------------------------------------------------
Total expenses before reimbursement.................. 881,560 643,447 1,626,242 594,670
Expenses reimbursed by the investment adviser........ -- (9,792) -- (112,030)
-----------------------------------------------------------------------------------------------------------------
Net investment income (loss)............................. (45,258) 904,551 1,450,200 214,789
-----------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCIES:
Net realized gain (loss) on investments@............... 240,218 1,620,396 5,003,696 (585,776)
Net realized gain (loss) on futures and options
contracts............................................ -- -- (524,955) --
Net realized foreign exchange gain (loss) on other
assets and liabilities............................... -- -- 720,956 (506,494)
Change in unrealized appreciation/depreciation on
investments.......................................... 25,016,207 15,272,123 13,392,395 1,120,932
Change in unrealized foreign exchange gain (loss) on
other assets and liabilities......................... -- -- 15,377 1,810,094
Change in unrealized appreciation/depreciation on
futures contracts.................................... -- -- 182,708 --
-----------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments and
foreign currencies................................... 25,256,425 16,892,519 18,790,177 1,838,756
-----------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..... $25,211,167 $17,797,070 $20,240,377 $2,053,545
================================================================================================================
</TABLE>
-------------------
* Net of foreign withholding taxes on interest and dividends of $66,
$1,816, $3,636, $2,245 $20,557, $6,965, $5,619, $269,136 and $85,357 on
the Balanced/Phoenix Investment Counsel, Asset Allocation, Growth-Income,
Alliance Growth, Growth/Phoenix Investment Counsel, Provident Growth,
Venture Value, Global Equities and International Diversified Equities
Portfolios, respectively.
@ Net of foreign withholding taxes on capital gains of $18,009 on the Global
Equities Portfolio.
See Notes to Financial Statements
71
<PAGE> 125
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED NOVEMBER 30, 1995
<TABLE>
<CAPTION>
CASH FIXED HIGH-YIELD WORLDWIDE
MANAGEMENT INCOME GLOBAL BOND BOND HIGH INCOME
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)................... $ 4,241,505 $ 1,224,668 $ 2,876,243 $ 7,526,895 $1,504,113
Net realized gain (loss) on investments........ 5,110 581,976 1,618,834 (3,711,235) 76,600
Net realized gain (loss) on futures and options
contracts.................................... -- 13,918 -- -- --
Net realized foreign exchange gain (loss) on
other assets and liabilities................. -- -- 1,319,839 -- --
Change in unrealized appreciation/depreciation
on investments............................... 44,053 1,262,150 1,593,149 4,427,627 484,883
Change in unrealized foreign exchange gain
(loss) on other assets and liabilities....... -- -- 1,814 -- --
Change in unrealized appreciation/depreciation
on futures contracts......................... -- 39,889 -- -- --
--------------------------------------------------------------------
Net increase in net assets resulting from
operations................................... 4,290,668 3,122,601 7,409,879 8,243,287 2,065,596
--------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income......... (2,210,000) (885,000) (1,700,000) (6,340,000) (114,929)
Distributions from net realized gain on
investments................................ -- -- -- -- --
--------------------------------------------------------------------
Total dividends and distributions to
shareholders................................. (2,210,000) (885,000) (1,700,000) (6,340,000) (114,929)
--------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold...................... 415,378,253 22,925,314 22,230,068 70,702,486 13,740,334
Proceeds from shares issued for reinvestment of
dividends and distributions.................. 2,210,000 885,000 1,700,000 6,340,000 114,929
Cost of shares repurchased..................... (418,035,564) (12,442,153) (14,423,490) (52,574,843) (4,768,369)
--------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from capital share transactions.............. (447,311) 11,368,161 9,506,578 24,467,643 9,086,894
--------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS................... 1,633,357 13,605,762 15,216,457 26,370,930 11,037,561
NET ASSETS:
Beginning of year.............................. 89,097,836 15,868,758 44,542,587 55,802,737 10,477,519
--------------------------------------------------------------------
End of year.................................... $ 90,731,193 $29,474,520 $59,759,044 $82,173,667 $21,515,080
========================================================================
---------------
Undistributed net investment income (loss)..... $ 4,234,947 $ 1,219,884 $ 3,620,109 $ 7,410,940 $1,431,913
========================================================================
Shares issued and repurchased:
Sold........................................... 39,465,595 2,218,395 2,131,775 6,846,915 1,299,782
Issued in reinvestment of dividends and
distributions................................ 214,355 90,306 170,000 648,925 11,873
Repurchased.................................... (39,709,537) (1,212,881) (1,407,509) (5,097,408) (480,433)
--------------------------------------------------------------------
Net increase (decrease)........................ (29,587) 1,095,820 894,266 2,398,432 831,222
========================================================================
</TABLE>
See Notes to Financial Statements
- ---------------------
72
<PAGE> 126
<TABLE>
<CAPTION>
Balanced/ Growth/
Phoenix Phoenix
Investment Asset Growth Alliance Investment Provident
Counsel Allocation Income Growth Counsel Growth
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 406,341 $ 5,320,722 $ 1,675,560 $ 481,532 $ 1,263,637 $ (45,258)
Net realized gain (loss) on investments 875,469 6,792,943 6,546,892 13,305,824 19,383,952 240,218
Net realized gain (loss) on futures and
options contracts..................... -- 37,040 -- 47,744 -- --
Net realized foreign exchange gain
(loss) on other assets and
liabilities........................... -- -- 76 -- 701 --
Change in unrealized appreciation/
depreciation on investments........... 1,971,928 20,689,780 26,098,737 21,063,685 14,865,880 25,016,207
Change in unrealized foreign exchange
gain (loss) on other assets and
liabilities........................... -- -- -- -- (21) --
Change in unrealized appreciation/
depreciation on futures contracts..... -- 94,950 -- 96,750 -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations....................... 3,253,738 32,935,435 34,321,265 34,995,535 35,514,149 25,211,167
- ---------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment income.. (11,237) (2,240,000) (875,000) (155,000) (1,450,000) (200,000)
Distributions from net realized
gain on investments................. -- (425,000) -- (725,000) -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders.......................... (11,237) (2,665,000) (875,000) (880,000) (1,450,000) (200,000)
- --------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold............... 30,928,111 91,078,058 79,200,929 168,074,086 45,890,799 46,200,686
Proceeds from shares issued for
reinvestment of dividends and
distributions......................... 11,237 2,665,000 875,000 880,000 1,450,000 200,000
Cost of shares repurchased.............. (3,269,069) (31,032,947) (27,140,302) (88,413,178) (35,688,009) (31,477,920)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from capital share
transactions.......................... 27,670,279 62,710,111 52,935,627 80,540,908 11,652,790 14,922,766
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS............ 30,912,780 92,980,546 86,381,892 114,656,443 45,716,939 39,933,933
NET ASSETS:
Beginning of year....................... 1,515,755 106,855,844 84,899,181 53,213,284 104,193,544 75,342,106
- --------------------------------------------------------------------------------------------------------------------------------
End of year.............................$32,428,535 $199,836,390 $171,281,073 $167,869,727 $149,910,483 $115,276,039
================================================================================================================================
Undistributed net investment
income (loss).........................$ 399,630 $ 5,029,483 $ 1,673,393 $ 477,396 $ 1,261,039 $ --
================================================================================================================================
Shares issued and repurchased:
Sold.................................... 2,742,183 7,788,903 6,452,877 12,084,699 4,046,435 3,971,874
Issued in reinvestment of dividends
and distributions..................... 1,132 243,157 77,502 76,126 135,387 18,536
Repurchased............................. (296,843) (2,699,219) (2,260,341) (6,421,749) (3,175,785) (2,684,472)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)................. 2,446,472 5,332,841 4,270,038 5,739,076 1,006,037 1,305,938
================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
International
Venture Global Diversified
Value Equities Equities
- ------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 904,551 $ 1,450,200 $ 214,789
Net realized gain (loss) on investments 1,620,396 5,003,696 (585,776)
Net realized gain (loss) on futures and
options contracts..................... -- (524,955) --
Net realized foreign exchange gain
(loss) on other assets and
liabilities........................... -- 720,956 (506,494)
Change in unrealized appreciation/
depreciation on investments........... 15,272,123 13,392,395 1,120,932
Change in unrealized foreign exchange
gain (loss) on other assets and
liabilities........................... -- 15,377 1,810,094
Change in unrealized appreciation/
depreciation on futures contracts..... -- 182,708 --
- ------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations....................... 17,797,070 20,240,377 2,053,545
- ------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.. (23,311) (855,000) (121,869)
Distributions from net realized
gain on investments................. -- (3,190,000) --
- ------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders.......................... (23,311) (4,045,000) (121,869)
- ------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold............... 164,118,300 79,044,610 58,139,793
Proceeds from shares issued for
reinvestment of dividends and
distributions......................... 23,311 4,045,000 121,869
Cost of shares repurchased.............. (31,455,895) (70,291,038) (23,670,269)
- ------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from capital share
transactions.......................... 132,685,716 12,798,572 34,591,393
- ------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS............ 150,459,475 28,993,949 36,523,069
NET ASSETS:
Beginning of year....................... 4,488,522 136,757,748 12,437,590
- ------------------------------------------------------------------------------------
End of year............................. $154,907,997 $165,751,697 $ 48,960,659
====================================================================================
Undistributed net investment
income (loss)......................... $ 889,057 $ 1,468,646 $ (346,916)
====================================================================================
Shares issued and repurchased:
Sold.................................... 13,646,177 6,436,345 6,011,154
Issued in reinvestment of dividends
and distributions..................... 2,359 357,648 12,721
Repurchased............................. (2,599,805) (5,815,859) (2,470,598)
- ------------------------------------------------------------------------------------
Net increase (decrease)................. 11,048,731 978,134 3,553,277
====================================================================================
</TABLE>
---------------------
73
<PAGE> 127
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED NOVEMBER 30, 1994
<TABLE>
<CAPTION>
WORLDWIDE
CASH FIXED GLOBAL HIGH-YIELD HIGH
MANAGEMENT INCOME BOND BOND INCOME*
<S> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income.......................... $ 2,204,504 $ 877,613 $ 2,056,427 $ 6,224,934 $ 42,729
Net realized gain (loss) on investments........ (527) (897,488) (2,571,262) (5,326,569) (2,442)
Net realized gain (loss) on futures and options
contracts.................................... -- -- (28,936) -- --
Net realized foreign exchange gain (loss) on
other assets and liabilities................. -- -- (887,865) -- --
Change in unrealized appreciation/depreciation
on investments............................... (40,979) (658,964) (296,847) (3,751,081) (95,693)
Change in unrealized foreign exchange gain
(loss) on other assets and liabilities....... -- -- 412,079 -- --
Change in unrealized appreciation/depreciation
on futures contracts......................... -- -- -- -- --
------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations.............................. 2,162,998 (678,839) (1,316,404) (2,852,716) (55,406)
------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income......... (294,500) (98,500) (342,000) (1,505,500) --
Distributions from net realized gain on
investments................................ -- (71,794) (187,458) (294,750) --
------------------------------------------------------------------------
Total dividends and distributions to
shareholders................................. (294,500) (170,294) (529,458) (1,800,250) --
------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold...................... 269,001,242 22,698,651 36,121,308 57,807,375 10,551,001
Proceeds from shares issued for reinvestment of
dividends and distributions.................. 294,500 170,294 529,458 1,800,250 --
Cost of shares repurchased..................... (206,669,280) (17,818,535) (15,272,111) (41,002,709) (18,076)
------------------------------------------------------------------------
Net increase in net assets resulting from
capital share transactions................... 62,626,462 5,050,410 21,378,655 18,604,916 10,532,925
------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS................... 64,494,960 4,201,277 19,532,793 13,951,950 10,477,519
NET ASSETS:
Beginning of period............................ 24,602,876 11,667,481 25,009,794 41,850,787 0
------------------------------------------------------------------------
End of period.................................. $ 89,097,836 $ 15,868,758 $ 44,542,587 $ 55,802,737 $10,477,519
========================================================================
---------------
Undistributed net investment income............ $ 2,203,442 $ 882,067 $ 1,143,813 $ 6,224,045 $ 42,729
========================================================================
Shares issued and repurchased:
Sold........................................... 26,101,794 2,269,964 3,580,326 5,298,745 1,055,117
Issued in reinvestment of dividends and
distributions................................ 28,873 17,149 53,427 163,362 --
Repurchased.................................... (20,030,209) (1,803,912) (1,531,719) (3,819,032) (1,811)
------------------------------------------------------------------------
Net increase................................... 6,100,458 483,201 2,102,034 1,643,075 1,053,306
========================================================================
</TABLE>
* Commenced operations October 28, 1994
See Notes to Financial Statements
- ---------------------
74
<PAGE> 128
<TABLE>
<CAPTION>
Balanced/ Growth/
Phoenix Phoenix
Investment Asset Growth Alliance Investment Provident
Counsel* Allocation Income Growth Counsel Growth
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income.......................... $ 4,526 $ 2,079,263 $ 873,663 $ 151,776 $ 1,447,313 $ 194,453
Net realized gain (loss) on investments........ (907) (219,928) (636,783) 333,777 (8,005,593) (3,106,757)
Net realized gain (loss) on futures and options
contracts.................................... -- 1,189 -- -- -- --
Net realized foreign exchange gain (loss) on
other assets and liabilities................. -- -- -- -- -- --
Change in unrealized appreciation/depreciation
on investments............................... (8,656) (3,516,746) (2,491,416) (1,181,114) (973,025) 2,410,066
Change in unrealized foreign exchange gain
(loss) on other assets and liabilities....... -- -- -- -- -- --
Change in unrealized appreciation/depreciation
on futures contracts......................... -- 18,875 -- -- -- --
------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations.............................. (5,037) (1,637,347) (2,254,536) (695,561) (7,531,305) (502,238)
------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income......... -- (297,500) (246,500) (47,000) (519,500) (55,000)
Distributions from net realized gain on
investments................................ -- (156,839) (43,923) (604,808) -- --
------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders................................ -- (454,339) (290,423) (651,808) (519,500) (55,000)
------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS;
Proceeds from shares sold..................... 1,521,140 87,819,488 59,410,366 49,449,776 68,645,462 46,577,399
Proceeds from shares issued for reinvestment of
dividends and distributions................. -- 454,339 290,423 651,808 519,500 55,000
Cost of shares repurchased.................... (348) (14,916,201) (17,336,891) (18,796,458) 21,953,015) (13,643,955)
------------------------------------------------------------------------------------
Net increase in net assets resulting from
capital share transactions 1,520,792 73,357,626 42,363,898 31,305,126 47,211,947 32,988,444
------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS................. 1,515,755 71,265,940 39,818,939 29,957,757 39,161,142 32,431,206
NET ASSETS:
Beginning of period.......................... 0 35,589,904 45,080,242 23,255,527 65,032,402 42,910,900
------------------------------------------------------------------------------------
End of period................................ $1,515,755 $106,855,844 $84,899,181 $53,213,284 $104,193,544 $75,342,106
====================================================================================
- -------------------
Undistributed net investment income.......... $ 4,526 $ 1,948,761 $ 872,833 $ 150,864 $ 1,446,701 $ 193,602
====================================================================================
Shares issued and repurchased:
Sold......................................... 152,269 8,292,654 5,595,922 4,589,555 6,425,534 4,560,014
Issued in reinvestment of dividends and
distributions.............................. -- 42,422 27,322 58,987 47,098 5,268
Repurchased.................................. (35) (1,415,441) (1,653,770) (1,778,224) (2,099,136) (1,344,321)
------------------------------------------------------------------------------------
Net increase................................. 152,234 6,919,635 3,969,474 2,870,318 4,373,496 3,220,961
====================================================================================
</TABLE>
<PAGE> 129
<TABLE>
<CAPTION>
International
Venture Global Diversified
Value Equities Equities
--------------------------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income.......................... $ 7,817 $ 439,686 $ 16,284
Net realized gain (loss) on investments........ -- 1,537,529 --
Net realized gain (loss) on futures and options
contracts.................................... -- (370,832) --
Net realized foreign exchange gain (loss) on
other assets and liabilities................. -- 1,428,760 49,917
Change in unrealized appreciation/depreciation
on investments............................... (71,000) (1,615,837) (303,708)
Change in unrealized foreign exchange gain
(loss) on other assets and liabilities....... -- 28,609 4
Change in unrealized appreciation/depreciation
of futures contracts......................... -- (182,708) --
--------------------------------------
Net increase (decrease) in net assets resulting
from operations.............................. (63,183) 1,265,207 (237,503)
--------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income......... -- (41,500) --
Distributions from net realized gain on
investments................................. -- (522,781) --
--------------------------------------
Total dividends and distributions to
shareholders................................. -- (564,281) --
--------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold...................... 4,785,696 153,578,193 12,781,226
Proceeds from shares issued for investment of
dividends and distributions.................. -- 564,281 --
Cost of shares repurchased..................... (246,991) (61,822,290) (106,133)
--------------------------------------
Net increase in net assets resulting from
capital share transactions................... 4,511,705 92,320,184 12,675,093
--------------------------------------
TOTAL INCREASE IN NET ASSETS................... 4,448,522 93,021,110 12,437,590
NET ASSETS:
Beginning of period............................ 0 43,736,638 0
--------------------------------------
End of period.................................. $4,448,522 $136,757,748 $12,437,590
======================================
- ---------------
Undistributed net investment income............ $ 7,817 $ 196,485 $ 66,201
======================================
Shares issued and repurchased:
Sold........................................... 480,157 12,891,831 1,282,522
Issued in reinvestment of dividends and
distributions................................ -- 47,983 --
Repurchased.................................... (25,421) (5,205,577) (10,870)
--------------------------------------
Net increase................................... 454,736 7,734,237 1,271,652
======================================
</TABLE>
---------------
75
<PAGE> 130
- ---------------------
SUNAMERICA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION: SunAmerica Series Trust
(the "Trust"), organized as a Massachusetts business trust on September 11,
1992, is an open-end management investment company. It was established to
provide a funding medium for certain annuity contracts issued by Variable
Separate Account (the "Account"), a separate account of Anchor National Life
Insurance Company ("Life Company"), organized under the laws of the state of
Arizona.
The Trust issues 14 separate series of shares ("Portfolios"), each of which
represents a separate managed portfolio of securities with its own investment
objectives. The Board of Trustees may establish additional series in the future.
The current Portfolios are the Cash Management Portfolio, Fixed Income
Portfolio, Global Bond Portfolio, High-Yield Bond Portfolio, Worldwide High
Income Portfolio, Balanced/Phoenix Investment Counsel Portfolio, Asset
Allocation Portfolio, Growth-Income Portfolio, Alliance Growth Portfolio,
Growth/Phoenix Investment Counsel Portfolio, Provident Growth Portfolio, Venture
Value Portfolio, Global Equities Portfolio and International Diversified
Equities Portfolio. All shares may be purchased or redeemed by the Account at
net asset value without any sales or redemption charge.
In the opinion of management of the Trust, the accompanying financial
statements contain all normal and recurring adjustments necessary for the fair
presentation of the financial position of the Trust at November 30, 1995, and
the results of its operations, the changes in its net assets and its financial
highlights for the period then ended.
2. SIGNIFICANT ACCOUNTING POLICIES: Following is a summary of significant
accounting policies consistently followed by the Trust in the preparation of its
financial statements.
SECURITY VALUATIONS: Stocks are stated at value based upon closing sales
prices reported on recognized securities exchanges or, for listed securities
having no sales reported and for unlisted securities, upon last-reported bid
prices. Nonconvertible bonds, debentures, and other long-term debt securities
are valued at prices obtained for the day of valuation from a bond pricing
service of a major dealer in bonds when such prices are available; however, in
circumstances where the investment adviser deems it appropriate to do so, an
over-the-counter or exchange quotation at the mean of representative bid or
asked prices may be used. Securities traded primarily on securities exchanges
outside the United States are valued at the last sale price on such exchanges on
the day of valuation, or if there is no sale on the day of valuation, at the
last reported bid price. Short-term securities with original or remaining
maturities in excess of 60 days are valued at the mean of their quoted bid and
ask prices. Short-term securities with 60 days or less to maturity are amortized
to maturity based on their cost to the Trust if acquired within 60 days of
maturity or, if already held by the Trust on the 60th day, are amortized to
maturity based on the value determined on the 61st day. Securities for which
quotations are not readily available are valued at fair value as determined in
good faith under the direction of the Trust's Trustees.
REPURCHASE AGREEMENTS: The Trust's 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 assure that the value,
including accrued interest, is at least equal to the repurchase price. In the
event of default of the obligation to repurchase, the Trust 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 Trust may be delayed or limited.
FOREIGN CURRENCY TRANSLATION: The books and records of the Trust are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars at published rates on the following basis:
(i) market value of investment securities, other assets and liabilities at the
prevailing rate of exchange at the valuation date.
(ii) purchases and sales of investment securities, income and expenses at the
rate of exchange prevailing on the respective dates of such transactions.
Assets and liabilities denominated in foreign currencies and commitments under
forward foreign currency contracts are translated into U.S. dollars at the mean
of the quoted bid and asked prices of such currencies against the U.S. dollar.
Purchases and sales of portfolio securities are translated at the rate of
exchange prevailing when such securities were acquired or sold. Income and
expenses are translated at rates of exchange prevailing when earned or incurred.
The Trust 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. The Trust 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.
- ---------------------
76
<PAGE> 131
Realized foreign exchange gain (loss) on other assets and liabilities and
change in unrealized foreign exchange gain (loss) on other assets and
liabilities include realized foreign exchange gains and losses from currency
gains or losses realized between the trade and settlement dates of securities
transactions, dividends received, the difference between the amounts of
interest, discount and foreign withholding taxes recorded on the Trust'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 the other assets
and liabilities arising as a result of changes in the exchange rate.
FUTURES CONTRACTS: A futures contract is an agreement between two parties to
buy and sell a security at a set price on a future date. Upon entering into such
a contract the Trust is required to pledge to the broker an amount of cash or
U.S. government securities equal to the minimum "initial margin" requirements of
the exchange on which the futures contract is traded. The contract amount
reflects the extent of a portfolio's exposure in these financial instruments. A
portfolio's participation in the futures markets involves certain risks,
including imperfect correlation between movements in the price of futures
contracts and movements in the price of the securities hedged or used for cover.
The Trust's activities in the futures contracts are conducted through regulated
exchanges which do not result in counterparty credit risks. Pursuant to a
contract, the portfolios agree to receive from or pay to the broker an amount of
cash equal to the daily fluctuation in value of the contract. Such receipts or
payments are known as "variation margin" and are recorded by the portfolios as
unrealized appreciation or depreciation. When a contract is closed, the
portfolios record a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed.
SECURITIES TRANSACTIONS, DIVIDENDS, INVESTMENT INCOME AND EXPENSES: As is
customary in the mutual fund industry, securities transactions are accounted for
on the date the securities are purchased or sold. Interest income is accrued
daily except when collection is not expected. Dividend income and distributions
to shareholders are recorded on the ex-dividend date except for certain
dividends from foreign securities, which are recorded as soon as the Trust is
informed after the ex-dividend date. The Trust amortizes premiums and accretes
discounts on fixed income securities, as well as those original issue discounts
for which amortization is required for federal income tax purposes; gains and
losses realized upon the sale of such securities are based on their identified
cost. Portfolios which earn foreign income and capital gains may be subject to
foreign withholding taxes at various rates.
The Fund records 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. Dividends and distributions which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains. To the extent
distributions exceed current and accumulated earnings and profits for federal
income tax purposes, they are reported as distributions of paid-in capital.
Common expenses incurred by the Trust are allocated among the portfolios based
upon relative net assets. In all other respects, expenses are charged to each
series as incurred on a specific identification basis.
STATEMENT OF POSITION 93-2: In accordance with the requirements of Statement
of Position 93-2 Determination, Disclosure, and Financial Statement Presentation
of Income, Capital Gain, and Return of Capital Distributions by Investment
Companies permanent book-tax differences relating to shareholder distributions
have been reclassified to paid-in-capital. Net investment income/loss, net
realized gain/loss, and net assets were not affected by this change.
For the year ended November 30, 1995, the reclassification arising from
book/tax differences resulted in increases (decreases) to the components of net
assets as follows:
<TABLE>
<CAPTION>
ACCUMULATED ACCUMULATED
UNDISTRIBUTED NET UNDISTRIBUTED NET
INVESTMENT INCOME/(LOSS) REALIZED GAIN/(LOSS) PAID-IN CAPITAL
<S> <C> <C> <C>
---------------------------------------------------------
<CAPTION>
<S> <C> <C> <C>
Fixed Income....................................... $ (1,851) $ 1,851 $ --
Global Bond........................................ 1,300,053 (1,271,117) (28,936)
Growth/Phoenix Investment Counsel.................. 701 (701) --
Provident Growth................................... 51,656 -- (51,656)
Global Equities.................................... 676,961 (676,961) --
International Diversified Equities................. (506,037) 506,037 --
</TABLE>
3. JOINT REPURCHASE AGREEMENT ACCOUNT: The Cash Management Portfolio along with
other affiliated registered investment companies, transfers 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. As of November 30, 1995, the Cash Management
Portfolio had a 0.9% undivided interest, which represented $973,000 in principal
amount in a repurchase agreement in the joint account. As of such date, the
repurchase agreement in the joint account and the collateral therefor was as
follows:
---------------------
77
<PAGE> 132
Yamaichi International (America), Inc. Repurchase Agreement, 5.91% dated
11/30/95, in the principal amount of $109,857,000 repurchase price $109,875,035
due 12/1/95 collateralized by $50,000,000 U.S. Treasury Bonds 7.25% due 8/15/22;
$39,550,000 U.S. Treasury Bonds 7.25% due 8/15/22 and $8,095,000 U.S. Treasury
Bonds 8.125% due 8/15/19, approximate aggregate value $114,116,023.
4. FEDERAL INCOME TAXES: The Trust intends 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>
AGGREGATE AGGREGATE UNREALIZED CAPITAL
UNREALIZED UNREALIZED GAIN/(LOSS) COST OF CAPITAL LOSS LOSS
GAIN (LOSS) NET INVESTMENTS CARRYOVER* UTILIZED
<S> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Cash Management......................... $ 22,796 $ (19,722) $ 3,074 $93,678,239 $ -- $ 527
Fixed Income............................ 523,918 (49,521) 474,397 36,645,552 291,703 503,104
Global Bond............................. 1,062,262 (189,241) 873,021 59,621,563 889,577 1,582,879
High-Yield Bond......................... 2,970,068 (2,332,406) 637,662 76,997,553 9,010,069 --
Worldwide High Income................... 688,226 (314,837) 373,389 21,780,298 -- --
Balanced/Phoenix Investment Counsel..... 2,077,243 (116,901) 1,960,342 32,686,400 -- --
Asset Allocation........................ 18,243,650 (920,945) 17,322,705 196,297,944 -- --
Growth-Income........................... 26,484,213 (2,175,094) 24,309,119 153,225,264 -- 198,016
Alliance Growth......................... 21,936,834 (1,733,725) 20,203,109 147,423,255 -- --
Growth/Phoenix Investment Counsel**..... 18,342,283 (1,868,784) 16,473,499 135,014,489 -- 7,941,298
Provident Growth........................ 30,335,810 (2,288,369) 28,047,441 86,022,759 3,161,237 23,425
Venture Value........................... 16,036,378 (835,255) 15,201,123 141,738,345 -- --
Global Equities***...................... 15,559,437 (4,898,890) 10,660,547 158,082,695 -- --
International Diversified Equities...... 2,250,789 (1,433,565) 817,224 46,809,792 211,683 --
</TABLE>
* Expire 2002 - 2003
** Post 10/31 Capital Loss Deferrals: Alliance Growth $12,517; Growth/Phoenix
Investment Counsel $96,044
*** Post 10/31 Currency Loss Deferrals: Global Equities $313,344
5. MANAGEMENT OF THE TRUST: SunAmerica Asset Management Corp. ("SAAMCo" or the
"Adviser"), an indirect wholly owned subsidiary of the Life Company, serves as
investment adviser for all the portfolios of the Trust. The Trust, on behalf of
each Portfolio, entered into an Investment Advisory and Management Agreement
(the "Agreement") with SAAMCo to handle the Trust's day-to-day affairs. It is
the responsibility of the Adviser and for certain Portfolios pursuant to
Subadvisory Agreements described below, the subadvisers, to make investment
decisions for the Portfolios and to place the purchase and sale orders for the
Portfolio transactions. Such orders may be directed to any broker including, in
the manner and to the extent permitted by applicable law, affiliates of the
Adviser or a subadviser. The Agreement provides that SAAMCo shall administer the
Trust's business affairs; furnish offices, necessary facilities and equipment;
provide clerical, bookkeeping and administrative services; and permit any of its
officers or employees to serve, without compensation, as trustees or officers of
the Trust, if duly elected to such positions. There is no subadviser for the
High-Yield Bond Portfolio or the Cash Management Portfolio, and SAAMCo,
therefore, performs all investment advisory services for these Portfolios. The
term "Assets" means the average daily net assets of the portfolios.
- ---------------------
78
<PAGE> 133
The Trust pays SAAMCo a monthly fee calculated daily at the following annual
percentages of each Portfolio's Assets:
<TABLE>
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
<S> <C> <C>
- ---------------------------------------------------------
<CAPTION>
<S> <C> <C>
Cash Management $0--$100 million 0.55%
> $100 million 0.50%
> $300 million 0.45%
Fixed Income $0--$ 50 million 0.70%
> $ 50 million 0.60%
> $150 million 0.55%
> $250 million 0.50%
Global Bond- $0--$ 50 million 0.75%
Asset Allocation > $ 50 million 0.65%
> $150 million 0.60%
> $250 million 0.55%
High-Yield Bond $0--$ 50 million 0.70%
> $ 50 million 0.65%
> $150 million 0.60%
> $250 million 0.55%
Worldwide High > $ 0 1.00%
Income- International
Diversified Equities
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ---------------------------------------------------------
<S> <C> <C>
Balanced/Phoenix $0--$ 50 million 0.70%
Investment Counsel- > $ 50 million 0.65%
Growth-Income- > $150 million 0.60%
Alliance Growth- > $300 million 0.55%
Growth/Phoenix > $500 million 0.50%
Investment Counsel
Provident Growth $0--$ 50 million 0.85%
> $ 50 million 0.80%
> $150 million 0.70%
> $250 million 0.65%
> $350 million 0.60%
Venture Value $0--$100 million 0.80%
> $100 million 0.75%
> $500 million 0.70%
Global Equities $0--$ 50 million 0.90%
> $ 50 million 0.80%
> $150 million 0.70%
> $300 million 0.65%
</TABLE>
The organizations described below act as subadvisers to the Trust and certain
of its Portfolios pursuant to Subadvisory Agreements with SAAMCo. Under the
Subadvisory Agreements, the subadvisers manage the investment and reinvestment
of the assets of the respective Portfolios for which they are responsible. Each
of the subadvisers is independent of SAAMCo and discharges it responsibilities
subject to the policies of the Trustees and the oversight and supervision of
SAAMCo, which pays the subadvisers' fees.
Alliance Capital Management L.P. serves as subadviser for the Global Equities,
Alliance Growth and Growth-Income Portfolios; Phoenix Investment Counsel, Inc.
serves as subadviser for the Growth/Phoenix Investment Counsel and Balanced/
Phoenix Investment Counsel Portfolios; Provident Investment Counsel serves as
subadviser for the Provident Growth Portfolio; Goldman Sachs Asset Management, a
separate operating division of Goldman Sachs & Co., serves as subadviser for the
Asset Allocation and Fixed Income Portfolios; Goldman Sachs Asset Management
International, an affiliate of Goldman, Sachs & Co., serves as subadviser for
the Global Bond Portfolio; Davis Selected Advisers L.P. serves as subadviser for
the Venture Value Portfolio and Morgan Stanley Asset Management, Inc., a wholly
owned subsidiary of Morgan Stanley Group, Inc., serves as subadviser for the
International Diversified Equities and Worldwide High Income Portfolios.
The portion of the investment advisory fees received by SAAMCo which are paid
to subadvisers are as follows:
<TABLE>
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
<S> <C> <C>
- ---------------------------------------------------------
<CAPTION>
<S> <C> <C>
Fixed Income $0--$ 50 million 0.35%
> $ 50 million 0.25%
> $150 million 0.20%
> $250 million 0.15%
Global Bond- $0--$ 50 million 0.40%
Asset Allocation > $ 50 million 0.30%
> $150 million 0.25%
> $250 million 0.20%
Worldwide High Income- $0--$350 million 0.65%
International Diversified > $350 million 0.60%
Equities
Balanced/Phoenix $0--$ 50 million 0.35%
Investment Counsel- > $ 50 million 0.30%
Growth-Income- > $150 million 0.25%
Alliance Growth- > $300 million 0.20%
Growth/Phoenix > $500 million 0.15%
Investment Counsel
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ---------------------------------------------------------
<S> <C> <C>
Provident Growth $0--$ 50 million 0.50%
> $ 50 million 0.45%
> $150 million 0.35%
> $250 million 0.30%
> $350 million 0.25%
Venture Value $0--$100 million 0.45%
> $100 million 0.40%
> $500 million 0.35%
Global Equities $0--$ 50 million 0.50%
> $ 50 million 0.40%
> $150 million 0.30%
> $300 million 0.25%
</TABLE>
---------------------
79
<PAGE> 134
Effective November 1, 1994, SAAMCo has voluntarily agreed to reimburse
expenses in excess of the following percentages of average daily net assets (the
voluntary reimbursement can be retracted by SAAMCo at any time): Cash Management
Portfolio -- 0.85%, Fixed Income Portfolio -- 1.00%, Global Bond
Portfolio -- 1.35%, High-Yield Bond Portfolio -- 0.95%, Worldwide High Income
Portfolio -- 1.60%, Balanced/Phoenix Investment Counsel Portfolio -- 1.00%,
Asset Allocation Portfolio -- 0.99%, Growth-Income Portfolio -- 0.95%, Alliance
Growth Portfolio -- 0.95%, Growth/Phoenix Investment Counsel Portfolio -- 0.95%,
Provident Growth Portfolio -- 1.10%, Venture Value Portfolio -- 1.10%, Global
Equities Portfolio -- 1.50%, and International Diversified Equities
Portfolio -- 1.70%.
The impact of such expense reimbursements is reflected in the Statement of
Operations under the caption "expenses reimbursed by the investment adviser."
6. ORGANIZATIONAL EXPENSES: Costs incurred by the Adviser in connection with
the organization and registration of the Trust amounted to $204,704.
Organizational expenses are amortized on a straight line basis by each portfolio
of the Trust over the period of benefit not to exceed 60 months from the date
the respective portfolio commenced operations.
7. PURCHASES AND SALES OF SECURITIES: Information with respect to purchases and
sales of long-term securities for the year ended November 30, 1995, was as
follows:
<TABLE>
<CAPTION>
BALANCED/
PHOENIX
CASH FIXED GLOBAL HIGH-YIELD WORLDWIDE INVESTMENT ASSET
MANAGEMENT INCOME BOND BOND HIGH INCOME COUNSEL ALLOCATION
<S> <C> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Purchases of portfolio
securities............... $ -- $95,415,175 $147,006,289 $138,372,345 $34,007,548 $42,473,080 $352,141,835
Sales of portfolio
securities.............. -- 83,064,458 139,091,866 112,918,160 22,644,456 17,985,029 289,092,283
U.S. government securities
included above were as
follows:
Purchases of U.S.
government securities... -- 84,337,477 35,433,750 2,066,875 -- 10,425,314 212,592,167
Sales of U.S. government
securities.............. -- 77,785,099 32,063,008 2,073,125 -- 2,906,986 208,376,436
</TABLE>
<TABLE>
<CAPTION>
GROWTH/PHOENIX INTERNATIONAL
GROWTH- ALLIANCE INVESTMENT PROVIDENT VENTURE GLOBAL DIVERSIFIED
INCOME GROWTH COUNSEL GROWTH VALUE EQUITIES EQUITIES
<S> <C> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Purchases of portfolio
securities............... $124,599,274 $200,738,953 $274,196,262 $63,822,191 $130,191,861 $150,853,413 $46,462,123
Sales of portfolio
securities.............. 67,344,207 127,900,774 252,237,605 46,951,215 10,487,423 144,012,195 13,564,536
U.S. government securities
included above were as
follows:
Purchases of U.S.
government securities... -- -- -- -- -- -- --
Sales of U.S. government
securities.............. -- -- -- -- -- -- --
</TABLE>
- ---------------------
80
<PAGE> 135
8. TRANSACTIONS WITH AFFILIATES: The following portfolio incurred brokerage
commissions with an affiliated broker:
<TABLE>
<CAPTION>
GOLDMAN
SACHS & CO.
-----------
<S> <C>
Fixed Income............................................................... $ 562
Asset Allocation........................................................... 35,946
</TABLE>
9. FINANCIAL INVESTMENTS WITH OFF-BALANCE SHEET RISK: At November 30, 1995,
Global Bond, Global Equities and International Diversified Equities Portfolios
had outstanding forward foreign currency exchange contracts ("forward
contracts") in order to hedge against changes in future foreign exchange rates
and enhance return. Forward contracts involve elements of market risk in excess
of the amount reflected in the Statement of Assets and Liabilities. The Trust
bears the risk of an unfavorable change in the foreign exchange rate underlying
the forward contract.
10. COMMITMENTS AND CONTINGENCIES: The High-Yield Bond Portfolio has
established an uncommitted line of credit with State Street Bank and Trust
Company with interest payable at Federal Funds rate plus 125 basis points.
Borrowings under the line of credit will commence when the Fund's cash shortfall
exceeds $100,000. The High-Yield Bond Portfolio periodically utilized the
uncommitted line of credit and incurred an interest expense of $2,898 for the
year ended November 30, 1995.
---------------------
81
<PAGE> 136
- ---------------------
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS*
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET
NET REALIZED DIVIDENDS DIVIDENDS
ASSET & TOTAL DECLARED FROM NET
VALUE NET UNREALIZED FROM FROM NET REALIZED NET ASSET
BEGINNING INVEST- GAIN (LOSS) INVEST- INVEST- GAIN ON VALUE
PERIOD OF MENT ON MENT MENT INVEST- END OF TOTAL
ENDED PERIOD INCOME** INVESTMENTS OPERATIONS INCOME MENTS PERIOD RETURN
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Cash Management Portfolio
2/9/93-
11/30/93 $ 10.00 $ 0.19 $ 0.01 $ 0.20 $ -- $ -- $ 10.20 2.00%
11/30/94 10.20 0.38 (0.02) 0.36 (0.09) -- 10.47 3.51
11/30/95 10.47 0.56 0.01 0.57 (0.34) -- 10.70 5.59
Fixed Income Portfolio
7/1/93-
11/30/93 10.00 0.14 0.05 0.19 -- -- 10.19 1.90
11/30/94 10.19 0.52 (0.87) (0.35) (0.05) (0.04) 9.75 (3.41)
11/30/95 9.75 0.60 1.00 1.60 (0.53) -- 10.82 17.01
Global Bond Portfolio
7/1/93-
11/30/93 10.00 0.13 0.17 0.30 -- -- 10.30 3.00
11/30/94 10.30 0.53 (0.86) (0.33) (0.09) (0.05) 9.83 (3.18)
11/30/95 9.83 0.60 0.97 1.57 (0.38) -- 11.02 16.40
High-Yield Bond Portfolio
2/9/93-
11/30/93 10.00 0.76 0.36 1.12 -- -- 11.12 11.20
11/30/94 11.12 1.20 (1.65) (0.45) (0.29) (0.06) 10.32 (4.26)
11/30/95 10.32 1.11 0.12 1.23 (1.02) -- 10.53 12.64
Worldwide High Income Portfolio
10/28/94-
11/30/94 10.00 0.04 (0.09) (0.05) -- -- 9.95 (0.50)
11/30/95 9.95 1.10 0.47 1.57 (0.10) -- 11.42 16.02
Balanced/Phoenix Investment Counsel Portfolio
10/28/94-
11/30/94 10.00 0.04 (0.08) (0.04) -- -- 9.96 (0.40)
11/30/95 9.96 0.34 2.23 2.57 (0.05) -- 12.48 25.89
Asset Allocation Portfolio
7/1/93-
11/30/93 10.00 0.08 0.28 0.36 -- -- 10.36 3.60
11/30/94 10.36 0.29 (0.25) 0.04 (0.05) (0.03) 10.32 0.30
11/30/95 10.32 0.42 2.24 2.66 (0.20) (0.04) 12.74 26.10
<CAPTION>
RATIO OF
NET NET
ASSETS RATIO OF INVESTMENT
END OF EXPENSES INCOME
PERIOD PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED (000'S) NET ASSETS NET ASSETS TURNOVER
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cash Management Portfolio
2/9/93-
11/30/93 $ 24,603 0.71%+++ 2.53%+++ --%
11/30/94 89,098 0.70++ 3.73++ --
11/30/95 90,731 0.67 5.32 --
Fixed Income Portfolio
7/1/93-
11/30/93 11,667 0.94+++ 3.92+++ 208
11/30/94 15,869 0.94++ 5.21++ 419
11/30/95 29,475 0.96++ 5.93++ 412
Global Bond Portfolio
7/1/93-
11/30/93 25,010 1.35+++ 3.56+++ 84
11/30/94 44,543 1.06 5.29 347
11/30/95 59,759 0.95 5.89 339
High-Yield Bond Portfolio
2/9/93-
11/30/93 41,851 0.94+++ 9.43+++ 229
11/30/94 55,803 0.92++ 11.07++ 225
11/30/95 82,174 0.80 10.80 174
Worldwide High Income Portfolio
10/28/94-
11/30/94 10,478 1.60+++ 4.48+++ 2
11/30/95 21,515 1.30 10.46 176
Balanced/Phoenix Investment Counsel Portfolio
10/28/94-
11/30/94 1,516 1.00+++ 4.25+++ 10
11/30/95 32,429 0.98++ 3.08++ 153
Asset Allocation Portfolio
7/1/93-
11/30/93 35,590 0.99+++ 2.33+++ 71
11/30/94 106,856 0.94++ 2.71++ 152
11/30/95 199,836 0.81 3.62 207
</TABLE>
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
+ Annualized
++ During the periods ended November 30, 1993, November 30, 1994 and
November 30, 1995, the investment adviser waived a portion of or all
fees and assumed a portion of or all expenses for the portfolios. If all
fees and expenses had been incurred by the portfolios, the ratio of
expenses to average net assets and the ratio of net investment income to
average net assets would have been as follows:
<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME (LOSS)
---------------------------------- ----------------------------------
11/30/93 11/30/94 11/30/95 11/30/93 11/30/94 11/30/95
<S> <C> <C> <C> <C> <C> <C>
---------------------------------- ----------------------------------
Cash Management Portfolio........................... 1.10% 0.78% 0.67% 2.14% 3.65% 5.32%
Fixed Income Portfolio.............................. 1.81 1.09 0.97 3.05 5.06 5.92
Global Bond Portfolio............................... 1.81 1.06 0.95 3.10 5.29 5.89
High-Yield Bond Portfolio........................... 1.29 0.93 0.80 9.08 11.06 10.80
Worldwide High Income Portfolio..................... -- 2.26 1.30 -- 3.82 10.46
Balanced/Phoenix Investment Counsel Portfolio....... -- 6.82 1.11 -- (1.57) 2.95
Asset Allocation Portfolio.......................... 1.67 0.94 0.81 1.65 2.71 3.62
</TABLE>
See Notes to Financial Statements
- ---------------------
82
<PAGE> 137
- ---------------------
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS* -- (CONTINUED)
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET
NET REALIZED DIVIDENDS DIVIDENDS
ASSET NET & TOTAL DECLARED FROM NET
VALUE INVEST- UNREALIZED FROM FROM NET REALIZED NET ASSET
BEGINNING MENT GAIN (LOSS) INVEST- INVEST- GAIN ON VALUE
PERIOD OF INCOME ON MENT MENT INVEST- END OF TOTAL
ENDED PERIOD (LOSS)** INVESTMENTS OPERATIONS INCOME MENTS PERIOD RETURN
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Growth-Income Portfolio
2/9/93-
11/30/93 $ 10.00 $ 0.12 $ 0.49 $ 0.61 $ -- $ -- $ 10.61 6.10%
11/30/94 10.61 0.13 (0.36) (0.23) (0.04) (0.01) 10.33 (2.20)
11/30/95 10.33 0.17 3.31 3.48 (0.10) -- 13.71 33.89
Alliance Growth Portfolio
2/9/93-
11/30/93 10.00 0.05 0.87 0.92 -- -- 10.92 9.20
11/30/94 10.92 0.04 (0.14) (0.10) (0.01) (0.17) 10.64 (0.93)
11/30/95 10.64 0.07 5.08 5.15 (0.03) (0.13) 15.63 48.91
Growth/Phoenix Investment Counsel Portfolio
2/9/93-
11/30/93 10.00 0.17 0.61 0.78 -- -- 10.78 7.80
11/30/94 10.78 0.16 (0.87) (0.71) (0.06) -- 10.01 (6.64)
11/30/95 10.01 0.12 3.14 3.26 (0.13) -- 13.14 32.92
Provident Growth Portfolio
2/9/93-
11/30/93 10.00 0.02 0.02 0.04 -- -- 10.04 0.40
11/30/94 10.04 0.03 (0.01) 0.02 (0.01) -- 10.05 0.19
11/30/95 10.05 (0.01) 3.09 3.08 (0.03) -- 13.10 30.66
Venture Value Portfolio
10/28/94-
11/30/94 10.00 0.03 (0.25) (0.22) -- -- 9.78 (2.20)
11/30/95 9.78 0.17 3.55 3.72 (0.03) -- 13.47 38.17
Global Equities Portfolio
2/9/93-
11/30/93 10.00 0.03 0.96 0.99 -- -- 10.99 9.90
11/30/94 10.99 0.05 0.71 0.76 (0.01) (0.07) 11.67 6.87
11/30/95 11.67 0.12 1.64 1.76 (0.08) (0.29) 13.06 15.58
International Diversified Equities Portfolio
10/28/94-
11/30/94 10.00 0.01 (0.23) (0.22) -- -- 9.78 (2.20)
11/30/95 9.78 0.07 0.38 0.45 (0.08) -- 10.15 4.63
RATIO OF
NET NET
ASSETS RATIO OF INVESTMENT
END OF EXPENSES INCOME
PERIOD PERIOD TO AVERAGE TO AVERAGE PORTFOLIO
ENDED (000'S) NET ASSETS NET ASSETS TURNOVER
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Growth-Income Portfolio
2/9/93-
11/30/93 $ 45,080 0.82%+++ 1.59%+++ 27%
11/30/94 84,899 0.81++ 1.26++ 59
11/30/95 171,281 0.77 1.42 59
Alliance Growth Portfolio
2/9/93-
11/30/93 23,256 0.82+++ 0.61+++ 73
11/30/94 53,213 0.82++ 0.37++ 146
11/30/95 167,870 0.79 0.51 138
Growth/Phoenix Investment Counsel Portfolio
2/9/93-
11/30/93 65,032 0.82+++ 2.20+++ 165
11/30/94 104,194 0.81++ 1.52++ 211
11/30/95 149,910 0.76 1.01 229
Provident Growth Portfolio
2/9/93-
11/30/93 42,911 0.97+++ 0.32+++ 40
11/30/94 75,342 0.96++ 0.31++ 54
11/30/95 115,276 0.93 (0.05) 52
Venture Value Portfolio
10/28/94-
11/30/94 4,449 1.10+++ 3.93+++ --
11/30/95 154,908 1.00++ 1.43++ 18
Global Equities Portfolio
2/9/93-
11/30/93 43,737 1.50+++ 0.38+++ 58
11/30/94 136,758 1.28 0.42 67
11/30/95 165,752 1.14 1.02 106
International diversified Equities Portfolio
10/28/94-
11/30/94 12,438 1.70+++ 1.60+++ --
11/30/95 48,961 1.70++ 0.76++ 52
</TABLE>
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
+ Annualized
++ During the periods ended November 30, 1993, November 30, 1994 and
November 30, 1995, the investment adviser waived a portion of or all
fees and assumed a portion of or all expenses for the portfolios. If all
fees and expenses had been incurred by the portfolios, the ratio of
expenses to average net assets and the ratio of net investment income to
average net assets would have been as follows:
<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME (LOSS)
---------------------------------- ----------------------------------
11/30/93 11/30/94 11/30/95 11/30/93 11/30/94 11/30/95
<S> <C> <C> <C> <C> <C> <C>
---------------------------------- ----------------------------------
Growth-Income Portfolio............................. 1.40% 0.89% 0.77% 1.01% 1.18% 1.42%
Alliance Growth Portfolio........................... 1.56 0.96 0.79 (0.13) 0.23 0.51
Growth/Phoenix Investment Counsel Portfolio......... 1.28 0.87 0.76 1.74 1.46 1.01
Provident Growth Portfolio.......................... 1.46 1.05 0.93 (0.17) 0.22 (0.05)
Venture Value Portfolio............................. -- 3.89 1.02 -- 1.14 1.41
Global Equities Portfolio........................... 2.52 1.28 1.14 (0.64) 0.42 1.02
International Diversified Equities Portfolio........ -- 3.50 2.09 -- (0.20) 0.37
</TABLE>
See Notes to Financial Statements
---------------------
83
<PAGE> 138
- ---------------------
SUNAMERICA SERIES TRUST
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of SunAmerica Series Trust
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolios, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Cash Management Portfolio,
Fixed Income Portfolio, Global Bond Portfolio, High-Yield Bond Portfolio,
Worldwide High Income Portfolio, Balanced/Phoenix Investment Counsel Portfolio,
Asset Allocation Portfolio, Growth-Income Portfolio, Alliance Growth Portfolio,
Growth/Phoenix Investment Counsel Portfolio, Provident Growth Portfolio, Venture
Value Portfolio, Global Equities Portfolio and International Diversified
Equities Portfolio (constituting SunAmerica Series Trust, hereafter referred to
as the "Fund") at November 30, 1995, the results of each of their operations for
the year then ended, the changes in each of their net assets for each of the two
years in the period then ended and the financial highlights for each of the
periods indicated, in conformity with generally accepted accounting principles.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
November 30, 1995 by correspondence with the custodian and brokers and the
application of alternative auditing procedures where confirmations from brokers
were not received, provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York
January 16, 1996
- ---------------------
84
<PAGE> 139
- ---------------------
SUNAMERICA SERIES TRUST
GLOBAL BOND PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(DENOMINATED IN
FOREIGN BONDS & NOTES -- 46.2% LOCAL CURRENCY) VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
DENMARK -- 2.1%
Kingdom of Denmark 9.00% 2000...................................... 7,500,000 $ 1,444,946
-----------
GERMANY -- 14.9%
Republic of Germany 6.50% 2005..................................... 9,000,000 6,176,127
Republic of Germany 6.75% 2004..................................... 4,200,000 2,937,624
Treuhandanstalt 6.50% 2003......................................... 1,500,000 1,041,057
-----------
10,154,808
-----------
IRELAND -- 2.7%
Republic of Ireland 8.00% 2000..................................... 1,000,000 1,808,171
-----------
ITALY -- 6.0%
Republic of Italy 10.50% 2000...................................... 5,500,000,000 4,085,590
-----------
JAPAN -- 8.7%
International Bank for Reconstruction & Development 6.75% 2001..... 150,000,000 1,616,550
Japan Development Bank 6.50% 2001.................................. 400,000,000 4,299,824
-----------
5,916,374
-----------
NETHERLANDS -- 2.5%
Netherlands Government 7.00% 2005.................................. 2,700,000 1,717,740
-----------
SPAIN -- 2.3%
Government of Spain 10.30% 2002.................................... 170,000,000 1,539,108
-----------
SWEDEN -- 1.3%
Kingdom of Sweden 6.00% 2005....................................... 6,500,000 916,781
-----------
UNITED KINGDOM -- 5.7%
United Kingdom Treasury 7.50% 2006................................. 500,000 839,568
United Kingdom Treasury 8.50% 2005................................. 1,700,000 3,076,925
-----------
3,916,493
-----------
TOTAL FOREIGN BONDS & NOTES (cost $30,414,688)..................... 31,500,011
-----------
</TABLE>
- ---------------------
6
<PAGE> 140
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
U.S. GOVERNMENT & AGENCIES -- 34.5% AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT -- 34.5%
United States Treasury Notes 5.25% 2001............................ $ 3,000,000 $ 2,947,020
United States Treasury Notes 6.38% 2001............................ 3,500,000 3,574,375
United States Treasury Notes 6.50% 2005............................ 3,500,000 3,606,645
United States Treasury Notes 6.88% 1999............................ 3,000,000 3,087,180
United States Treasury Notes 7.00% 2006............................ 5,000,000 5,329,700
United States Treasury Notes 7.88% 2004............................ 4,500,000 5,023,125
-----------
TOTAL U.S. GOVERNMENT AND AGENCIES (cost $22,612,683).............. 23,568,045
-----------
TOTAL INVESTMENT SECURITIES (cost $53,027,371)..................... 55,068,056
-----------
<CAPTION>
SHORT-TERM SECURITIES -- 19.1%
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 19.1%
Cayman Island Time Deposit with State Street Bank & Trust Co.
5.81% due 12/02/96 (cost $13,051,000)............................ 13,051,000 13,051,000
-----------
TOTAL INVESTMENTS --
(cost $66,078,371) 99.8% 68,119,056
Other assets less liabilities -- 0.2 102,361
------- -----------
NET ASSETS -- 100.0% $68,221,417
======= ===========
</TABLE>
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
------------------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*BEF 53,390,063 USD 1,757,987 12/09/96 $ 72,020
CHF 4,117,000 ITL 5,258,634,150 11/29/97 235,429
CHF 758,342 USD 601,000 11/29/97 15,837
CHF 4,008,000 USD 3,197,090 01/29/97 104,378
*DEM 4,973,354 USD 3,285,000 02/27/97 33,631
DEM 10,907,691 USD 7,223,636 02/27/97 93,080
DEM 4,600,995 USD 3,017,095 02/27/97 9,341
DKK 8,433,000 USD 1,435,918 01/22/97 963
ESP 569,782,000 USD 4,408,320 01/16/97 16,560
JPY 248,498,000 USD 2,245,518 01/24/97 46,056
JPY 421,136,000 USD 3,792,395 01/24/97 64,909
NLJ 2,967,685 USD 1,739,558 01/09/97 13,456
SEK 6,301,000 USD 956,073 01/28/97 15,991
*USD 91,858 IEP 57,000 01/08/97 3,957
*USD 2,829,830 ESP 367,960,000 01/16/97 6,328
*USD 165,492 ITL 252,656,252 01/29/97 678
*USD 1,241,339 ITL 1,921,978,000 01/29/97 22,725
---------
755,339
---------
</TABLE>
---------------------
7
<PAGE> 141
(UNAUDITED)
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS (continued)
------------------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE DEPRECIATION
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*GBP 1,427,847 USD 2,338,813 02/14/97 (57,635)
GBP 2,468,000 USD 4,067,264 02/14/97 (74,940)
IEP 1,125,000 USD 1,797,778 01/08/97 (93,318)
ITL 8,415,795,250 USD 5,484,568 01/29/97 (50,410)
*USD 1,702,544 BEF 53,390,063 12/09/96 (16,577)
*USD 2,521,182 GBP 1,501,580 02/14/97 (984)
*USD 3,318,881 DEM 5,014,000 02/27/97 (41,138)
*USD 3,380,323 DEM 5,014,000 02/27/97 (102,580)
---------
(437,582)
---------
Net Unrealized Appreciation.................... $ 317,757
=========
</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.
BEF -- Belgian Franc
CHF -- Swiss Franc
DEM -- Deutsche Mark
DKK -- Danish Kroner
ESP -- Spanish Peseta
GBP -- Pound Sterling
IEP -- Irish Pound
ITL -- Italian Lira
JPY -- Japanese Yen
NLJ -- Netherlands Guilder
SEK -- Swedish Kroner
See Notes to Financial Statements
- ---------------------
8
<PAGE> 142
- ---------------------
SUNAMERICA SERIES TRUST
CORPORATE BOND PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 93.0% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 2.7%
Apparel & Textiles -- 0.6%
Collins & Aikman Corp. 11.50% 2006..................................... $ 100,000 $ 106,750
Westpoint Stevens, Inc. 9.38% 2005..................................... 100,000 102,750
Automotive -- 0.7%
Aftermarket Technology Corp. 12.00% 2004............................... 100,000 111,000
Exide Corp. 10.00% 2005................................................ 100,000 104,250
Lear Corp. 9.50% 2006.................................................. 50,000 53,750
Retail -- 1.4%
Penney (J.C.) Co., Inc. 7.65% 2016..................................... 500,000 519,075
-------------
997,575
-------------
CONSUMER STAPLES -- 4.0%
Food, Beverage & Tobacco -- 3.2%
Carr Gottstein Foods Co. 12.00% 2005................................... 100,000 106,000
Ralphs Grocery Co. 10.45% 2004......................................... 100,000 103,000
RJR Nabisco, Inc. 8.63% 2002........................................... 235,000 243,051
RJR Nabisco, Inc. 9.25% 2013........................................... 75,000 77,276
Smith's Food & Drug Centers, Inc. 11.25% 2007.......................... 100,000 109,000
Super Rite Foods, Inc. 10.63% 2002..................................... 500,000 532,500
Household Products -- 0.8%
Playtex Family Products Corp. 9.00% 2003............................... 100,000 98,000
Revlon Consumer Products Corp. 10.50% 2003............................. 100,000 104,500
Simmons Co. 10.75% 2006................................................ 100,000 104,000
-------------
1,477,327
-------------
ENERGY -- 2.9%
Energy Services -- 2.6%
Arkla, Inc. 9.20% 1997................................................. 65,000 66,904
Coastal Corp. 9.75% 2003............................................... 250,000 289,988
Tosco Corp. 7.00% 2000................................................. 250,000 255,050
Tosco Corp. 7.63% 2006................................................. 350,000 370,716
Energy Sources -- 0.3%
Mesa Operating Co. 10.63% 2006......................................... 100,000 108,000
-------------
1,090,658
-------------
FINANCE -- 28.2%
Banks -- 8.3%
Abn Amro Holdings NV 7.30% 2026........................................ 250,000 246,700
African Development Bank 6.88% 2015.................................... 500,000 497,545
Bank Montreal-Chicago 7.80% 2007....................................... 750,000 802,245
Continental Bank NA 12.50% 2001(1)..................................... 300,000 369,327
Security Pacific Corp. 11.50% 2000..................................... 275,000 324,822
Signet Banking Corp. 9.63% 1999........................................ 300,000 322,989
Union Bank Switzerland-New York 7.25% 2006............................. 500,000 522,965
Financial Services -- 16.0%
American General Corp. 9.63% 2018...................................... 500,000 534,355
Case Equipment Loan Trust 7.30% 2002................................... 155,029 157,639
Chevy Chase Auto Receivables 5.80% 2002................................ 121,279 121,051
</TABLE>
---------------------
9
<PAGE> 143
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
CNA Financial Corp. 7.25% 2023......................................... $ 500,000 $ 488,710
Continental Corp. 8.25% 1999........................................... 100,000 104,727
First Nationwide Escrow Corp. 10.63% 2003*............................. 100,000 107,000
Ford Capital BV 9.38% 2001............................................. 600,000 670,164
Ford Capital BV 9.50% 2001............................................. 400,000 449,216
General Motors Acceptance Corp. 5.63% 2001............................. 300,000 292,632
Lehman Brothers Holdings, Inc. 6.13% 2001.............................. 575,000 568,180
Navistar Financial 6.55% 2001.......................................... 155,421 156,489
Pacific Mutual Life 7.90% 2023......................................... 500,000 527,745
Premier Auto Trust 4.90% 1998.......................................... 47,118 46,882
Premier Auto Trust 7.90% 1999.......................................... 120,000 121,612
Resolution Funding Corp. zero coupon 2021.............................. 640,000 126,822
Salomon, Inc. 9.00% 1999............................................... 525,000 555,030
Standard Credit Card Master Trust 6.25% 1998........................... 260,000 260,650
Swedish Export Credit Corp. 9.88% 2038................................. 500,000 545,295
Trizec Finance Corp., Ltd. 10.88% 2005................................. 100,000 110,250
Insurance -- 3.9%
Conseco, Inc. 10.50% 2004.............................................. 600,000 721,338
GE Global Insurance Holdings Corp. 7.00% 2026.......................... 750,000 746,640
-------------
10,499,020
-------------
HEALTHCARE -- 0.7%
Health Services -- 0.4%
Genesis Health 9.75% 2005.............................................. 50,000 52,375
Tenet Healthcare Corp. 10.13% 2005..................................... 100,000 110,500
Medical Products -- 0.3%
Dade International, Inc. 11.13% 2006*.................................. 100,000 108,000
-------------
270,875
-------------
INDUSTRIAL & COMMERCIAL -- 10.5%
Business Services -- 4.1%
Allied Waste North America, Inc. 10.25% 2006*.......................... 50,000 51,250
Joy Technologies, Inc. 10.25% 2003..................................... 600,000 657,000
Knoll, Inc. 10.88% 2006................................................ 100,000 109,000
Prime Succession Acquisition 10.75% 2004*(2)........................... 50,000 53,750
Statia Terminals International 11.75% 2003*............................ 50,000 50,500
United Stationers Supply Co. 12.75% 2005............................... 50,000 55,188
Waste Management, Inc. 8.75% 2018...................................... 500,000 563,460
Machinery -- 0.3%
Alvey Systems, Inc. 11.38% 2003........................................ 100,000 104,000
Multi-Industry -- 3.5%
EnviroSource, Inc. 9.75% 2003.......................................... 50,000 47,000
Four M Corp. 12.00% 2006............................................... 50,000 52,375
News America Holdings, Inc. 10.13% 2012................................ 500,000 592,190
Tenneco, Inc. 10.00% 1998.............................................. 555,000 590,115
Transportation -- 2.6%
Ameritruck Distribution Corp. 12.25% 2005.............................. 50,000 48,750
Gearbulk Holdings Ltd. 11.25% 2004..................................... 100,000 109,000
Stena Lines AB 10.50% 2005............................................. 100,000 107,000
Transport Ocean Container Corp. 12.25% 2004............................ 600,000 716,250
-------------
3,906,828
-------------
</TABLE>
- ---------------------
10
<PAGE> 144
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 9.1%
Broadcasting & Media -- 5.7%
Bell Cablemedia PLC zero coupon 2004(3)................................ $ 150,000 $ 128,250
Chancellor Broadcasting Co. 9.38% 2004................................. 100,000 99,750
Comcast UK Cable Partners Ltd. zero coupon 2007(3)..................... 175,000 119,437
Heritage Media Corp. 8.75% 2006........................................ 100,000 97,000
Nextel Communications, Inc. zero coupon 2003(3)........................ 100,000 75,250
Paramount Communications, Inc. 8.25% 2022.............................. 500,000 478,385
Peoples Choice TV Corp. zero coupon 2004(1)(3)......................... 50,000 21,500
SFX Broadcasting, Inc. 10.75% 2006..................................... 100,000 105,000
Sinclair Broadcast Group, Inc. 10.00% 2005............................. 100,000 101,000
Sullivan Broadcasting 10.25% 2005...................................... 100,000 100,500
Time Warner, Inc. 7.45% 1998........................................... 290,000 294,443
Valassis Inserts, Inc. 9.38% 1999...................................... 500,000 513,865
Cable -- 2.5%
Cablevision Systems Corp. 9.25% 2005................................... 100,000 97,750
Continental Cablevision, Inc. 9.50% 2013............................... 500,000 580,730
Echostar Satellite Broadcasting Corp. zero coupon 2004(3).............. 100,000 76,000
Rogers Cablesystems Ltd. 10.00% 2007................................... 100,000 104,750
UIH Australia Pacific, Inc. zero coupon 2006(3)........................ 100,000 52,500
Entertainment Products -- 0.1%
Cobblestone Golf Group, Inc. 11.50% 2003............................... 50,000 51,500
Leisure & Tourism -- 0.8%
AMF Group, Inc. zero coupon 2006(3).................................... 200,000 127,500
Courtyard Marriott Ltd. 10.75% 2008(2)................................. 50,000 52,750
Six Flags Theme Parks, Inc. zero coupon 2005(3)........................ 125,000 115,000
------------
3,392,860
------------
INFORMATION TECHNOLOGY -- 6.7%
Communication Equipment -- 2.3%
Australis Holdings Ltd. zero coupon 2002*(3)........................... 50,000 28,375
Cablevision Industries Corp. 10.75% 2002............................... 670,000 733,590
Lenfest Communications, Inc. 10.50% 2006............................... 100,000 104,000
Computers & Business Equipment -- 1.5%
Harris Corp. 10.38% 2018............................................... 500,000 557,855
Electronics -- 0.1%
Advanced Micro Devices, Inc. 11.00% 2003............................... 50,000 54,125
Paging -- 0.3%
Paging Network, Inc. 10.13% 2007....................................... 100,000 100,250
Telecommunications -- 2.5%
360 Communications Co. 7.13% 2003...................................... 160,000 160,758
Anixter, Inc. 8.00% 2003............................................... 500,000 519,925
Brooks Fiber Properties, Inc. zero coupon 2006(3)...................... 100,000 65,500
Teleport Communications Group zero coupon 2007(3)...................... 100,000 67,750
Vanguard Cellular Systems, Inc. 9.38% 2006............................. 100,000 100,375
------------
2,492,503
------------
MATERIALS -- 3.2%
Chemicals -- 1.4%
Arcadian Partners L.P. 10.75% 2005..................................... 100,000 111,375
Crain Industry, Inc. 13.50% 2005(2).................................... 50,000 55,625
Harris Chemical North America, Inc. 10.25% 2001........................ 100,000 103,250
HS Resources, Inc. 9.25% 2006*......................................... 50,000 50,781
</TABLE>
---------------------
11
<PAGE> 145
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Chemicals (continued)
Royal Oak Mines 11.00% 2006............................................ $ 50,000 $ 51,500
Sterling Chemicals, Inc. 11.75% 2006................................... 50,000 51,000
Viridian, Inc. 9.75% 2003.............................................. 100,000 109,000
Forest Products -- 1.1%
Buckeye Cellulose Corp. 9.25% 2008..................................... 100,000 103,000
Owens-Illinois, Inc. 10.50% 2002....................................... 100,000 105,250
Packaging Resources, Inc. 11.63% 2003(2)............................... 50,000 52,750
Riverwood International Corp. 10.88% 2008.............................. 100,000 90,000
Stone Container Corp. 11.50% 2004...................................... 50,000 52,000
Metals & Minerals -- 0.7%
GS Technologies, Inc. 12.25% 2005...................................... 100,000 107,000
Republic Engineered Steels, Inc. 9.88% 2001............................ 50,000 46,000
Ryderson Tull, Inc. 9.13% 2006......................................... 100,000 104,500
------------
1,193,031
------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 3.1%
Foreign Government -- 3.1%
Province of Quebec 13.25% 2014......................................... 290,000 352,159
Republic Of Columbia 7.25% 2003........................................ 250,000 247,200
Republic of South Africa 9.63% 1999.................................... 500,000 534,375
------------
1,133,734
------------
REAL ESTATE -- 2.0%
Real Estate Investment Trusts -- 2.0%
Chelsea GCA Realty, Inc. 7.75% 2001.................................... 150,000 152,407
Price REIT, Inc. 7.50% 2006............................................ 500,000 513,355
Tanger Properties Ltd. 8.75% 2001...................................... 85,000 86,091
------------
751,853
------------
U.S. GOVERNMENT & AGENCIES -- 18.0%
U.S. Government & Agencies -- 18.0%
Federal Home Loan Mortgage Corp. 7.50% 2026............................ 1,000,580 1,013,708
Federal Home Loan Mortgage Corp. 8.20% 1998............................ 110,000 110,378
Federal National Mortgage Association 6.50% 2011....................... 1,480,314 1,467,820
Federal National Mortgage Association 8.50% 2005....................... 750,000 799,920
Government National Mortgage Association 8.00% 2026.................... 1,498,914 1,544,811
United States Treasury Bonds 8.50% 2020................................ 120,000 148,687
United States Treasury Bonds 8.75% 2017................................ 90,000 113,203
United States Treasury Bonds Strip zero coupon 2020.................... 430,000 89,857
United States Treasury Bonds Strip zero coupon 2020.................... 6,640,000 1,413,922
------------
6,702,306
------------
UTILITIES -- 1.8%
Electric Utilities -- 1.6%
California Energy, Inc. zero coupon 2004(3)............................ 100,000 103,500
Tenaga Nasional 7.50% 2025*............................................ 500,000 506,425
Telephone -- 0.2%
Millicom International Cellular zero coupon 2006(3).................... 100,000 59,500
------------
669,425
------------
TOTAL BONDS & NOTES (cost $33,442,054)................................. 34,577,995
------------
</TABLE>
- ---------------------
12
<PAGE> 146
(UNAUDITED)
<TABLE>
<CAPTION>
PREFERRED STOCK -- 0.6% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 0.3%
Broadcasting & Media -- 0.3%
K-III Communications Corp.............................................. 1,059 $ 104,837
------------
INFORMATION TECHNOLOGY -- 0.4%
Telecommunications -- 0.4%
PanAmSat, L.P.......................................................... 106 130,701
------------
TOTAL PREFERRED STOCK (cost $214,250).................................. 235,538
------------
TOTAL INVESTMENT SECURITIES (cost $33,656,304)......................... 34,813,533
------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 5.4% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 4.3%
British Aerospace PLC 7.55% due 5/15/97*............................... $ 100,000 100,598
Capital One Bank 8.33% due 2/10/97..................................... 575,000 577,380
Comdisco, Inc. 7.33% due 3/6/97........................................ 200,000 200,860
Comdisco, Inc. 9.75% due 1/15/97....................................... 275,000 276,172
First USA Bank 8.10% due 2/21/97....................................... 250,000 251,175
Tele-Communications, Inc. 7.00% due 8/4/97............................. 200,000 201,232
TIME DEPOSIT -- 1.1%
Cayman Island Time Deposit with State Street Bank & Trust Co.
2.75% due 12/02/96................................................... 417,000 417,000
------------
TOTAL SHORT-TERM SECURITIES (cost $2,022,527).......................... 2,024,417
------------
TOTAL INVESTMENTS --
(cost $35,678,831) 99.0% 36,837,950
Other assets less liabilities -- 1.0 369,457
------ ------------
NET ASSETS -- 100.0% $37,207,407
====== ============
</TABLE>
-----------------------------
* Resale restricted to qualified institutional buyers
(1) Consists of more than one class of securities traded together
as a unit; generally bonds with attached stocks or warrants
(2) Fair valued security; see Note 2
(3) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date
See Notes to Financial Statements
---------------------
13
<PAGE> 147
- ---------------------
SUNAMERICA SERIES TRUST
HIGH-YIELD BOND PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 96.3% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 5.8%
Automotive -- 0.8%
Am General Corp. 12.88% 2002.......................................... $1,000,000 $ 945,000
Retail -- 5.0%
E&S Holdings Corp. 10.38% 2006*....................................... 1,000,000 1,036,250
Finlay Fine Jewelry Corp. 10.63% 2003................................. 1,000,000 1,035,000
Specialty Retailers, Inc. 10.00% 2000................................. 2,000,000 2,050,000
Thrifty PayLess Holdings, Inc. 12.25% 2004............................ 1,300,000 1,521,000
------------
6,587,250
------------
CONSUMER STAPLES -- 3.7%
Food Retail -- 1.8%
Kash 'N Karry Food Stores, Inc. 11.50% 2003........................... 2,000,000 2,000,000
Food, Beverage & Tobacco -- 1.9%
Smith's Food & Drug Centers, Inc. 11.25% 2007......................... 2,000,000 2,180,000
------------
4,180,000
------------
ENERGY -- 3.2%
Energy Services -- 2.3%
DeepTech International, Inc. 12.00% 2000.............................. 500,000 527,500
Mesa Operating Co. zero coupon 2006(1)................................ 3,000,000 2,025,000
Energy Sources -- 0.9%
Flores & Rucks, Inc. 9.75% 2006....................................... 1,000,000 1,052,500
------------
3,605,000
------------
FINANCE -- 3.8%
Financial Services -- 3.8%
Dollar Financial Group, Inc. 10.88% 2006*............................. 2,000,000 2,027,500
Homeside, Inc. 11.25% 2003*........................................... 2,000,000 2,230,000
------------
4,257,500
------------
HEALTHCARE -- 9.9%
Health Services -- 8.5%
Abbey Healthcare Group, Inc. 9.50% 2002............................... 2,000,000 2,090,000
OrNda Healthcorp. 12.25% 2002......................................... 1,000,000 1,071,250
Quorum Health Group, Inc. 8.75% 2005.................................. 2,000,000 2,055,000
Tenet Healthcare Corp. 8.63% 2003..................................... 2,000,000 2,130,000
Tenet Healthcare Corp. 10.13% 2005.................................... 2,000,000 2,210,000
Medical Products -- 1.4%
Dade International, Inc. 11.13% 2006*................................. 1,500,000 1,620,000
------------
11,176,250
------------
INDUSTRIAL & COMMERCIAL -- 17.4%
Business Services -- 15.5%
Allied Waste North America, Inc. 10.25% 2006*......................... 2,000,000 2,042,500
Core Mark International, Inc. 11.38% 2003*............................ 1,000,000 1,016,250
Imed Corp. 9.75% 2006*................................................ 2,000,000 2,025,000
Iron Mountain, Inc. 10.13% 2006....................................... 1,000,000 1,055,000
Katz Corp. 12.75% 2002................................................ 1,000,000 1,116,250
Lifestyle Furnishings International Ltd. 10.88% 2006*................. 2,000,000 2,120,000
</TABLE>
- ---------------------
14
<PAGE> 148
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Business Services (continued)
Muzak L.P. 10.00% 2003................................................ $1,000,000 $ 1,011,250
Pillowtex Corp. 10.00% 2006*.......................................... 2,000,000 2,037,500
Printpack, Inc. 10.63% 2006*.......................................... 1,000,000 1,040,000
Rayovac Corp. 10.25% 2006*............................................ 2,000,000 2,045,000
Ryder TRS, Inc. 10.00% 2006*.......................................... 2,000,000 2,037,500
Multi-Industry -- 1.9%
International Semi-Tech Microelectronic, Inc. zero coupon 2003(1)..... 2,000,000 1,240,000
J.B. Poindexter & Co. 12.50% 2004..................................... 1,000,000 967,500
------------
19,753,750
------------
INFORMATION & ENTERTAINMENT -- 27.4%
Broadcasting & Media -- 11.1%
Jcac, Inc. 10.13% 2006................................................ 1,000,000 1,025,000
Kabelmedia Holding zero coupon 2006................................... 2,000,000 1,090,000
NWCG Holding Corp. zero coupon 1999................................... 3,000,000 2,490,000
Park Broadcasting, Inc. 11.75% 2004*.................................. 1,500,000 1,751,250
SFX Broadcasting, Inc. 10.75% 2006.................................... 2,000,000 2,100,000
Sinclair Broadcast Group, Inc. 10.00% 2005............................ 2,000,000 2,020,000
Universal Outdoor Holdings, Inc. 9.75% 2006........................... 2,000,000 2,040,000
Cable -- 11.9%
Bell Cablemedia PLC zero coupon 2005(1)............................... 1,750,000 1,373,750
Century Communications Corp. 11.88% 2003.............................. 2,000,000 2,135,000
Comcast UK Cable Partners Ltd. zero coupon 2007....................... 1,000,000 682,500
Diamond Cable Communications PLC zero coupon 2005(1).................. 1,000,000 697,500
Echostar Communications Corp. zero coupon 2004(1)..................... 1,000,000 810,000
Echostar Satellite Broadcasting Corp. zero coupon 2004(1)............. 1,250,000 950,000
International CableTel, Inc. zero coupon 2005(1)...................... 1,000,000 712,500
International CableTel, Inc. zero coupon 2006(1)...................... 1,000,000 640,000
Mettler Toledo, Inc. 9.75% 2006....................................... 1,000,000 1,045,000
Telewest PLC zero coupon 2007(1)...................................... 1,875,000 1,270,313
UIH Australia Pacific, Inc. zero coupon 2006(1)....................... 1,500,000 787,500
United International Holdings, Inc. zero coupon 1999(2)............... 2,250,000 1,586,250
Videotron Holdings PLC zero coupon 2005(1)............................ 1,000,000 787,500
Gaming -- 2.6%
Casino America, Inc. 12.50% 2003...................................... 1,000,000 970,000
Showboat, Inc. 13.00% 2009............................................ 1,000,000 1,095,000
Trump Atlantic City Associates 11.25% 2006............................ 1,000,000 945,000
Leisure & Tourism -- 1.8%
HMH Properties, Inc. 9.50% 2005....................................... 2,000,000 2,065,000
------------
31,069,063
------------
INFORMATION TECHNOLOGY -- 18.3%
Cellular -- 6.7%
Cellular Communications International, Inc. zero coupon 2000.......... 1,000,000 660,000
Cellular Communications International, Inc. zero coupon 2000(2)....... 2,000,000 1,375,000
Comcast Cellular Corp. zero coupon 2000............................... 1,500,000 1,080,000
Intercel, Inc. zero coupon 2006(1).................................... 1,000,000 607,500
Pricecellular Wireless Corp. zero coupon 2003(1)...................... 1,000,000 842,500
Pricecellular Wireless Corp. 14.00% 2001.............................. 1,000,000 985,000
Western Wireless Corp. 10.50% 2006.................................... 2,000,000 2,060,000
Computers & Business Equipment -- 1.9%
Twin Laboratories, Inc. 10.25% 2006................................... 1,000,000 1,041,875
Unisys Corp. 11.75% 2004.............................................. 1,000,000 1,045,000
</TABLE>
---------------------
15
<PAGE> 149
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Electronics -- 1.9%
Advanced Micro Devices, Inc. 11.00% 2003.............................. $2,000,000 $ 2,165,000
Paging -- 2.7%
Paging Network, Inc. 10.00% 2008*..................................... 2,000,000 1,997,500
Paging Network, Inc. 11.75% 2002...................................... 1,000,000 1,080,000
Telecommunications -- 5.1%
Hyperion Telecommunications, Inc. zero coupon 2003*................... 2,500,000 1,393,750
MFS Communications, Inc. zero coupon 2006............................. 1,000,000 725,000
PanAmSat, L.P. zero coupon 2003(1).................................... 2,500,000 2,300,000
Teleport Communications Group zero coupon 2007(1)..................... 2,000,000 1,355,000
------------
20,713,125
------------
MATERIALS -- 5.7%
Chemicals -- 0.9%
LaRoche Industries, Inc. 13.00% 2004.................................. 1,000,000 1,065,000
Forest Products -- 1.6%
American Pad & Paper Co. 13.00% 2005.................................. 650,000 757,250
Stone Container Corp. 11.88% 1998..................................... 1,000,000 1,065,000
Metals & Minerals -- 3.2%
Renco Metals, Inc. 11.50% 2003........................................ 2,000,000 2,100,000
WCI Steel, Inc. 10.00% 2004*.......................................... 1,500,000 1,511,250
------------
6,498,500
------------
UTILITIES -- 1.1%
Telephone -- 1.1%
Millicom International Cellular SA zero coupon 2006(1)................ 2,000,000 1,190,000
------------
TOTAL BONDS & NOTES (cost $104,171,085)............................... 109,030,438
------------
<CAPTION>
COMMON STOCK -- 0.0% SHARES
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER STAPLES -- 0.0%
Food, Beverage & Tobacco -- 0.0%
Smith's Food & Drug Centers, Inc. .................................... 1,505 45,526
------------
INFORMATION & ENTERTAINMENT -- 0.0%
Gaming -- 0.0%
Capital Gaming International, Inc.+ .................................. 40,000 1,875
------------
TOTAL COMMON STOCK (cost $156,260).................................... 47,401
------------
<CAPTION>
PREFERRED STOCK -- 1.0%
----------------------------------------------------------------------------------------------------
MATERIALS -- 1.0%
<S> <C> <C>
Forest Products -- 1.0%
SDW Holdings Corp. (cost $950,530)*(3)................................ 37,000 1,091,500
------------
</TABLE>
- ---------------------
16
<PAGE> 150
(UNAUDITED)
<TABLE>
<CAPTION>
WARRANTS -- 0.1%+
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER STAPLES -- 0.0%
Household Products -- 0.0%
Chattem, Inc.......................................................... 1,000 $ 3,375
-------------
INFORMATION & ENTERTAINMENT -- 0.0%
Cable -- 0.0%
United International Holdings, Inc.................................... 1,750 4,375
Gaming -- 0.0%
Fitzgerald Gaming Corp.*(3)........................................... 2,000 20,000
-------------
24,375
-------------
INFORMATION TECHNOLOGY -- 0.1%
Telecommunications -- 0.1%
Hyperion Telecommunications, Inc.*.................................... 2,500 68,750
-------------
MATERIALS -- 0.0%
Forest Products -- 0.0%
SDW Holdings Corp.*(3)................................................ 3,700 48,100
-------------
TOTAL WARRANTS (cost $142,784)........................................ 144,600
-------------
TOTAL INVESTMENT SECURITIES (cost $105,420,658)....................... 110,313,939
-------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 3.2% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 3.2%
Joint Repurchase Agreement Account (Note 3)
(cost $3,610,000)................................................... $3,610,000 3,610,000
-------------
TOTAL INVESTMENTS --
(cost $109,030,658) 100.6% 113,923,939
Liabilities in excess of other assets -- (0.6) (694,846)
------ -------------
NET ASSETS -- 100.0% $113,229,093
====== ==============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
(1) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date
(2) Consists of more than one class of securities traded together
as a unit; generally bonds with attached stocks or warrants
(3) Fair valued security; see Note 2
See Notes to Financial Statements
---------------------
17
<PAGE> 151
- ---------------------
SUNAMERICA SERIES TRUST
WORLDWIDE HIGH INCOME
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 85.0% AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 3.3%
Housing -- 2.7%
Companhia Brasileira de Petroleo Ipiranga 12.50% 1997............ $ 800,000 $ 816,000
Companhia Brasileira de Petroleo Ipiranga 12.50% 1997*........... 500,000 510,000
Retail -- 0.6%
Cole National Group, Inc. 9.88% 2006*............................ 170,000 172,550
K-Mart Corp. 8.38% 2022.......................................... 135,000 109,350
------------
1,607,900
------------
CONSUMER STAPLES 0.9%
Food, Beverage & Tobacco -- 0.1%
International Home Foods, Inc. 10.38% 2006*...................... 50,000 51,375
Household Products -- 0.8%
Revlon Worldwide Corp. zero coupon 1998.......................... 445,000 384,369
------------
435,744
------------
ENERGY -- 0.8%
Energy Services -- 0.2%
Parker Drilling Corp. 9.75% 2006*................................ 80,000 82,900
Energy Sources -- 0.6%
Flores & Rucks, Inc. 9.75% 2006.................................. 115,000 121,038
Nuevo Energy Co. 9.50% 2006...................................... 175,000 182,000
------------
385,938
------------
FINANCE -- 7.6%
Financial Services -- 7.5%
Alps Series 96-1 12.75% 2006*.................................... 150,000 155,437
Dillon Read Structured Finance Corp. 6.66% 2010.................. 95,164 77,294
Dillon Read Structured Finance Corp. 7.60% 2007.................. 291,263 262,218
First Nationwide Escrow Corp. 10.63% 2003*....................... 65,000 69,550
First Nationwide Holdings, Inc. 9.13% 2003*...................... 90,000 90,900
Homeside, Inc. 11.25% 2003*...................................... 40,000 44,600
Russia Federation Ministry Finance 3.00% 2003*................... 4,800,000 2,916,000
Stone Container Finance Co. 11.50% 2006*......................... 80,000 81,600
Insurance -- 0.1%
Home Holdings, Inc. 8.63% 2003................................... 95,000 26,600
------------
3,724,199
------------
INDUSTRIAL & COMMERCIAL -- 5.9%
Aerospace & Military Technology -- 0.3%
Jet Equipment Trust 11.79% 2013*................................. 100,000 123,060
Business Services -- 2.9%
ISP Holdings, Inc. 9.00% 2003*................................... 165,000 168,506
Norcal Waste Systems, Inc. zero coupon 2005(2)................... 215,000 236,500
Tevecap SA 12.63% 2004........................................... 1,000,000 1,026,250
Electrical Equipment -- 0.2%
Digital Equipment Corp. 8.63% 2012............................... 85,000 84,945
</TABLE>
- ---------------------
18
<PAGE> 152
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Multi-Industry -- 2.0%
Iochpe Maxion SA 12.38% 2002..................................... $ 500,000 $ 487,500
Iochpe Maxion SA 12.38% 2002*.................................... 500,000 487,500
Transportation -- 0.5%
Southland Corp. 5.00% 2003....................................... 295,000 242,638
------------
2,856,899
------------
INFORMATION & ENTERTAINMENT -- 7.3%
Broadcasting & Media -- 2.6%
Comcast Corp. 9.38% 2005......................................... 255,000 263,925
Grupo Televisa SA de CV zero coupon 2008(2)...................... 950,000 621,062
Marvel Parent Holdings, Inc. zero coupon 1998.................... 150,000 22,500
Viacom, Inc. 8.00% 2006.......................................... 385,000 373,423
Cable -- 2.8%
Cablevision Systems Corp. 9.25% 2005............................. 150,000 146,625
Cablevision Systems Corp. 9.88% 2006............................. 205,000 206,025
Echostar Satellite Broadcasting Corp. zero coupon 2004*(2)....... 355,000 269,800
Marcus Cable Co. L.P. zero coupon 2005(2)........................ 285,000 195,225
Rogers Cablesystems Ltd. 10.00% 2005(2).......................... 295,000 314,913
Telewest PLC zero coupon 2007(2)................................. 385,000 260,838
Gaming -- 0.5%
Grand Casino, Inc. 10.13% 2003................................... 180,000 181,350
Station Casinos, Inc. 9.63% 2003................................. 70,000 68,250
Leisure & Tourism -- 1.4%
Boyd Gaming Corp. 9.25% 2003..................................... 140,000 136,675
Courtyard Marriott Ltd. 10.75% 2008.............................. 175,000 184,844
Host Marriott Corp. Acquisition Properties, Inc. 9.00% 2007...... 180,000 180,000
Host Marriott Travel Plazas 9.50% 2005........................... 180,000 185,400
------------
3,610,855
------------
INFORMATION TECHNOLOGY -- 7.3%
Cellular -- 0.8%
Comcast Cellular Corp. zero coupon 2000.......................... 390,000 281,775
Rogers Communications, Inc. 9.125% 2006.......................... 90,000 89,100
Electronics -- 0.4%
Advanced Micro Devices, Inc. 11.00% 2003......................... 200,000 217,000
Paging -- 0.4%
Paging Network, Inc. 10.00% 2008*................................ 100,000 100,000
Paging Network, Inc. 10.13% 2007................................. 80,000 80,200
Telecommunications -- 5.7%
Brooks Fiber Properties, Inc. zero coupon 2006(2)................ 325,000 212,875
Brooks Fiber Properties, Inc. zero coupon 2006*(2)............... 110,000 69,437
Comtel Brasileira Ltd. 10.75% 2004*.............................. 1,050,000 1,085,700
Dial Callable Communications, Inc. zero coupon 2004(2)........... 600,000 417,000
IXC Communications, Inc. 12.50% 2005............................. 170,000 183,600
Lenfest Communications, Inc. 8.38% 2005.......................... 310,000 299,925
MFS Communications, Inc. zero coupon 2006(2)..................... 505,000 366,125
TCI Communications, Inc. 7.88% 2026.............................. 205,000 182,803
------------
3,585,540
------------
MATERIALS -- 6.4%
Forest Products -- 2.7%
Gaylord Container Corp. 11.50% 2001.............................. 250,000 266,250
</TABLE>
---------------------
19
<PAGE> 153
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Forest Products (continued)
Gaylord Container Corp. 12.75% 2005.............................. $ 40,000 $ 43,800
Grupo International Durango SA de CV 12.63% 2003................. 500,000 541,250
Owens Illinois, Inc. 11.00% 2003................................. 190,000 210,188
S.D. Warren Co. 12.00% 2004...................................... 135,000 141,750
TLC Beatrice International Holdings, Inc. 11.50% 2005............ 130,000 136,662
Metals & Minerals -- 3.7%
Tolmex SA de CV 8.38% 2003....................................... 2,000,000 1,810,000
United States Can Corp. 10.13% 2006.............................. 25,000 26,125
------------
3,176,025
------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 38.0%
Foreign Government -- 38.0%
Federative Republic of Brazil 4.50% 2014(3)(4)................... 2,478,082 1,809,000
Jamaica Government Bonds 12.00% 1999............................. 2,000,000 2,000,000
Republic of Argentina 8.38% 2003................................. 1,500,000 1,400,625
Republic of Argentina 11.00% 2006................................ 1,000,000 1,043,750
Republic of Bulgaria 2.25% 2028(3)............................... 2,500,000 917,175
Republic of Bulgaria. 6.69% 2028(3).............................. 1,000,000 544,370
Republic of Ecuador 3.00 2015(3)................................. 2,273,389 1,369,716
Republic of Panama 3.50% 2014(3)................................. 1,250,000 854,688
Republic of Philippines 6.44% 2009(3)............................ 1,600,000 1,552,000
Republic of Venezuela 6.44% 2020(3).............................. 500,000 403,125
Republic of Venezuela 6.63% 2007(3).............................. 4,250,000 3,708,125
United Mexican States 11.38% 2016................................ 3,000,000 3,108,750
------------
18,711,324
------------
UTILITIES -- 7.5%
Electric Utilities -- 3.6%
Cleveland Electric Illuminating Co. 8.38% 2011................... 25,000 24,136
Cleveland Electric Illuminating Co. 9.50% 2005................... 250,000 270,363
Hidroelectrica Piedra Aguila 10.63% 2001*........................ 1,300,000 1,345,500
Midland Cogeneration 10.33% 2002................................. 104,735 111,281
Midland Cogeneration, Series C-91 10.33% 2002.................... 18,012 19,138
Midland Funding Corp. 11.75% 2005................................ 40,000 44,453
Gas & Pipeline Utilities -- 3.3%
Bridas Corp. 12.50% 1999......................................... 1,500,000 1,599,375
Telephone -- 0.6%
Occidente Y Caribe Celular SA zero coupon 2004*(2)(5)............ 400,000 203,000
Philippine Long Distance Telephone 9.25% 2006.................... 100,000 108,937
------------
3,726,183
------------
TOTAL BONDS & NOTES (cost $38,907,783)........................... 41,820,607
------------
<CAPTION>
PREFERRED STOCK -- 1.5% SHARES
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 0.2%
Medical Products -- 0.2%
Fresenius Medical Care........................................... 90 91,602
------------
</TABLE>
- ---------------------
20
<PAGE> 154
(UNAUDITED)
<TABLE>
<CAPTION>
PREFERRED STOCK (continued) SHARES VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 1.3%
Broadcasting & Media -- 1.3%
TCI Pacific Communications, Inc.................................. 1,830 $ 160,811
Time Warner, Inc. Series M....................................... 423 461,070
------------
621,881
------------
TOTAL PREFERRED STOCK (cost $675,514)............................ 713,483
------------
<CAPTION>
WARRANTS -- 0.0%+ SHARES VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
NON-U.S. GOVERNMENT OBLIGATIONS -- 0.0%
Foreign Government -- 0.0%
Republic of Venezuela (cost $0).................................. 3,570 0
------------
<CAPTION>
LOAN AGREEMENT -- 1.0%
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
LOAN AGREEMENT -- 1.0%
Russia BFEA Loan Agreement++ (cost $485,250)..................... 600,000 470,250
------------
TOTAL INVESTMENT SECURITIES (cost $40,068,547)................... 43,004,340
------------
<CAPTION>
PRINCIPAL
AMOUNT
(DENOMINATED IN
SHORT-TERM SECURITIES--3.4% LOCAL CURRENCY
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 3.4%
Banamex Pagare 14.52% due 10/23/97............................... MXN 6,446,250 648,875
Empresas La Moderna 10.25% due 11/12/97.......................... 1,000,000 1,023,750
------------
TOTAL SHORT-TERM SECURITIES (cost $1,707,090).................... 1,672,625
------------
</TABLE>
---------------------
21
<PAGE> 155
(UNAUDITED)
<TABLE>
<CAPTION>
REPURCHASE AGREEMENT -- 8.5%
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 8.5%
Agreement with State Street Bank & Trust Co., bearing interest of
4.00% dated 11/29/96 to be repurchased 12/02/96 in the amount
of $4,208,402 and collateralized by $4,225,000 U.S. Treasury
Notes 6.00% due 9/30/98 (cost $4,207,000)...................... $ 4,207,000 $ 4,207,000
------------
TOTAL INVESTMENTS --
(cost $45,982,637) 99.3% 48,883,965
Other assets less liabilities -- 0.7 320,532
------ ------------
NET ASSETS -- 100.0% $ 49,204,497
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
++ Security in default
* Resale restricted to qualified institutional buyers
(1) Fair valued security; see Note 2
(2) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date
(3) Variable rate security; rate as of November 30, 1996
(4) A portion of the coupon interest is received in cash and a
portion is capitalized in the principal of the security
(5) Consists of more than one class of securities traded together
as a unit; generally bonds with attached stocks or warrants
MXN Mexican Peso
Allocation of net assets by country as of November 30, 1996:
<TABLE>
<S> <C>
United States 27.8%
Mexico 15.8
Brazil 12.6
Argentina 11.0
Venezuela 8.4
Russia 6.8
Jamaica 4.1
Philippines 3.4
Bulgaria 3.0
Ecuador 2.8
Panama 1.7
Canada 1.0
United Kingdom 0.5
Colombia 0.4
</TABLE>
See Notes to Financial Statements
- ---------------------
22
<PAGE> 156
- ---------------------
SUNAMERICA SERIES TRUST
SUNAMERICA BALANCED
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 71.1% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 5.2%
Apparel & Textiles -- 1.1%
NIKE, Inc. ............................................................ 2,000 $ 113,750
Automotive -- 2.0%
General Motors Corp. .................................................. 2,000 115,250
Harley-Davidson, Inc. ................................................. 2,000 88,750
Retail -- 2.1%
Federated Department Stores, Inc.+..................................... 1,600 54,600
Payless Shoesource, Inc.+.............................................. 2,000 78,250
Saks Holdings, Inc. ................................................... 300 9,750
Wal-Mart Stores, Inc. ................................................. 3,000 76,500
-------------
536,850
-------------
CONSUMER STAPLES -- 4.9%
Food, Beverage & Tobacco -- 2.9%
Consolidated Cigar Holdings, Inc.+..................................... 7,000 170,625
Seagram Co., Ltd. ..................................................... 3,000 122,625
Household Products -- 2.0%
Nu Skin Asia Pacific, Inc.+............................................ 500 14,812
Samsonite Corp. ....................................................... 5,000 189,375
-------------
497,437
-------------
ENERGY -- 3.9%
Energy Services -- 2.1%
Benton Oil & Gas Co.+.................................................. 2,000 51,000
Burlington Resources, Inc. ............................................ 1,100 58,300
Mobil Corp. ........................................................... 450 54,450
Royal Dutch Petroleum Co. ADR.......................................... 300 50,963
Energy Sources -- 1.8%
Enron Corp. ........................................................... 2,000 91,500
McDermott International, Inc. ......................................... 5,000 88,750
-------------
394,963
-------------
FINANCE -- 9.5%
Banks -- 2.6%
Chase Manhattan Corp. ................................................. 400 37,800
Fifth Third Bancorp.................................................... 2,000 140,000
Summit Bancorp......................................................... 2,000 89,750
Financial Services -- 4.0%
Alex Brown, Inc. ...................................................... 750 45,094
Capital One Financial Corp. ........................................... 3,000 108,375
Dean Witter, Discover & Co. ........................................... 570 38,974
Federal National Mortgage Association.................................. 3,000 123,750
Morgan Stanley Group, Inc. ............................................ 1,500 90,187
</TABLE>
---------------------
23
<PAGE> 157
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- (continued)
Insurance -- 2.9%
Aetna, Inc. ........................................................... 529 $ 38,154
Allstate Corp. ........................................................ 3,000 180,750
Equitable Cos., Inc. .................................................. 3,000 74,250
-------------
967,084
-------------
HEALTHCARE -- 13.4%
Drugs -- 8.2%
American Home Products Corp. .......................................... 1,500 96,375
Biogen, Inc.+.......................................................... 2,000 76,500
Bristol-Myers Squibb Co. .............................................. 1,000 113,750
Glaxo Wellcome PLC ADR................................................. 3,000 98,625
Ligand Pharmaceuticals, Inc.+.......................................... 10,000 120,625
Lilly (Eli) & Co. ..................................................... 1,000 76,500
Merck & Co., Inc. ..................................................... 1,000 83,000
Schering-Plough Corp. ................................................. 750 53,437
Teva Pharmaceutical Industries Ltd. ADR................................ 950 43,938
Warner-Lambert Co. .................................................... 1,000 71,500
Health Services -- 1.0%
Advanced Health Corp.+................................................. 5,000 71,250
Chiron Corp.+.......................................................... 1,400 27,125
Medical Products -- 4.2%
Allegiance Corp. ...................................................... 600 13,575
Allergan, Inc. ........................................................ 2,000 64,250
Baxter International, Inc. ............................................ 3,000 127,500
Johnson & Johnson Co. ................................................. 1,000 53,125
Medtronic, Inc. ....................................................... 1,000 66,125
Nitinol Medical Technologies, Inc.+.................................... 5,000 54,375
Pfizer, Inc. .......................................................... 600 53,775
-------------
1,365,350
-------------
INDUSTRIAL & COMMERCIAL -- 6.6%
Aerospace & Military Technology -- 3.3%
Boeing Co. ............................................................ 1,000 99,375
United Technologies Corp. ............................................. 1,700 238,425
Business Services -- 0.4%
Forrester Research, Inc.+.............................................. 500 10,687
NCO Group, Inc+........................................................ 2,000 34,250
Electrical Equipment -- 0.4%
General Electric Co. .................................................. 400 41,600
Machinery -- 1.2%
Caterpillar, Inc. ..................................................... 1,000 79,125
Deere & Co. ........................................................... 1,000 44,625
Multi-Industry -- 1.3%
Rockwell International Corp. .......................................... 2,000 128,500
-------------
676,587
-------------
INFORMATION & ENTERTAINMENT -- 3.5%
Broadcasting & Media -- 1.2%
Cox Radio, Inc.+....................................................... 1,000 17,500
Mecklermedia Corp.+.................................................... 5,000 101,250
</TABLE>
- ---------------------
24
<PAGE> 158
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- (continued)
Leisure & Tourism -- 2.3%
Callaway Golf Co. ..................................................... 2,000 $ 60,750
Carnival Corp. ........................................................ 3,000 94,875
MGM Grand, Inc.+....................................................... 1,000 38,625
Sun International Hotels Ltd.+......................................... 875 43,422
-------------
356,422
-------------
INFORMATION TECHNOLOGY -- 14.0%
Communication Equipment -- 0.9%
Ericsson (L.M.) Telephone Co. ADR...................................... 1,870 57,736
Lason Holdings, Inc. .................................................. 2,000 39,000
Computers & Business Equipment -- 2.3%
Hewlett-Packard Co. ................................................... 800 43,100
International Business Machines Corp. ................................. 1,000 159,375
International Network Services+........................................ 1,000 32,000
Electronics -- 3.9%
Cymer, Inc.+........................................................... 5,000 166,250
Intel Corp. ........................................................... 1,000 126,875
Nokia Corp. ADR........................................................ 1,000 56,125
Perkin-Elmer Corp. .................................................... 800 49,300
Software -- 3.4%
Cisco Systems, Inc.+................................................... 820 55,658
Computer Associates International, Inc. ............................... 2,000 131,500
Microsoft Corp.+....................................................... 1,000 156,875
Telecommunications -- 3.5%
Deutsche Telekom AG ADR................................................ 2,000 42,750
LCC International, Inc.+............................................... 1,000 16,000
Lucent Technologies, Inc. ............................................. 3,324 170,355
Orckit Communications, Ltd.+........................................... 1,000 11,250
WorldCom, Inc.+........................................................ 5,000 115,625
-------------
1,429,774
-------------
MATERIALS -- 8.6%
Chemicals -- 0.8%
Olin Corp. ............................................................ 2,000 79,750
Metals & Minerals -- 1.4%
Dal-Tile International, Inc.+.......................................... 7,000 148,750
Paper Products -- 6.4%
Champion International Corp. .......................................... 2,500 107,500
Georgia-Pacific Corp. ................................................. 2,000 145,500
International Paper Co. ............................................... 2,000 85,000
Union Camp Corp. ...................................................... 3,000 147,375
Willamette Industries, Inc. ........................................... 2,500 170,000
-------------
883,875
-------------
REAL ESTATE -- 0.6%
Real Estate Investment Trusts -- 0.6%
Innkeepers USA Trust................................................... 5,000 62,500
-------------
UTILITIES -- 0.9%
Telephone -- 0.9%
AT&T Corp. ............................................................ 1,000 39,250
</TABLE>
---------------------
25
<PAGE> 159
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Telephone -- (continued)
GTE Corp. ............................................................. 1,200 $ 53,850
-------------
93,100
-------------
TOTAL COMMON STOCK (cost $6,463,041)................................... 7,263,942
-------------
PREFERRED STOCK -- 0.7% SHARES VALUE
----------------------------------------------------------------------------------------------------
FINANCE -- 0.0%
Insurance -- 0.0%
Aetna, Inc............................................................. 59 4,381
INFORMATION & ENTERTAINMENT -- 0.7%
Broadcasting & Media -- 0.7%
Multicanal Participacoes SA ADR........................................ 5,000 70,625
-------------
TOTAL PREFERRED STOCK (cost $81,978)................................... 75,006
-------------
PRINCIPAL
BONDS & NOTES -- 10.2% AMOUNT
----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT -- 10.2%
U.S. Treasury Notes -- 10.2%
6.50% United States Treasury Notes 2001................................ $ 250,000 256,603
6.50% United States Treasury Notes 2006................................ 250,000 258,202
6.88% United States Treasury Notes 2006................................ 500,000 528,435
-------------
TOTAL BONDS & NOTES (cost $1,014,361).................................. 1,043,240
-------------
TOTAL INVESTMENT SECURITIES (cost $7,559,380).......................... 8,382,188
-------------
REPURCHASE AGREEMENT -- 15.7%
----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 15.7%
Joint Repurchase Agreement Account (Note 3)
(cost $1,605,000).................................................... 1,605,000 1,605,000
-------------
TOTAL INVESTMENTS --
(cost $9,164,380) 97.7% 9,987,188
Other assets less liabilities -- 2.3 236,606
------ -------------
NET ASSETS -- 100.0% $10,223,794
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depositary Receipt
See Notes to Financial Statements
- ---------------------
26
<PAGE> 160
- ---------------------
SUNAMERICA SERIES TRUST
BALANCED/PHOENIX INVESTMENT
COUNSEL PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 57.3% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 5.9%
Apparel & Textiles -- 1.0%
NIKE, Inc. ............................................................ 12,000 $ 682,500
Automotive -- 0.4%
Lear Corp.+............................................................ 8,100 290,588
Retail -- 4.5%
CVS Corp. ............................................................. 12,800 526,400
Home Depot, Inc. ...................................................... 10,000 521,250
Office Depot, Inc.+.................................................... 2,000 39,000
PetSmart, Inc.+........................................................ 15,400 392,700
Safeway, Inc.+......................................................... 16,500 670,312
Staples, Inc. +........................................................ 20,000 395,000
TJX Cos., Inc. ........................................................ 13,300 600,163
------------
4,117,913
------------
CONSUMER STAPLES -- 4.8%
Food, Beverage & Tobacco -- 2.3%
Campbell Soup Co. ..................................................... 4,000 330,500
Coca-Cola Co. ......................................................... 12,000 613,500
PepsiCo, Inc. ......................................................... 22,000 657,250
Household Products -- 2.5%
Colgate-Palmolive Co. ................................................. 4,000 370,500
Gillette Co. .......................................................... 8,700 641,625
Procter & Gamble Co. .................................................. 7,000 761,250
------------
3,374,625
------------
ENERGY -- 6.8%
Energy Services -- 4.1%
Baker Hughes, Inc. .................................................... 16,600 607,975
British Petroleum Co. PLC ADR.......................................... 2,000 277,500
Chevron Corp. ......................................................... 10,000 670,000
Halliburton Co. ....................................................... 5,000 301,250
Royal Dutch Petroleum Co. ADR.......................................... 4,000 679,500
Schlumberger Ltd. ..................................................... 3,000 312,000
Energy Sources -- 2.7%
Anadarko Petroleum Corp. .............................................. 3,000 200,625
Apache Corp. .......................................................... 9,000 327,375
Enron Oil & Gas Co. ................................................... 10,000 266,250
ENSCO International, Inc.+............................................. 12,500 548,437
Noble Affiliates, Inc. ................................................ 12,000 565,500
------------
4,756,412
------------
FINANCE -- 9.0%
Banks -- 1.9%
BankAmerica Corp. ..................................................... 4,400 453,200
Chase Manhattan Corp. ................................................. 4,000 378,000
Citicorp............................................................... 3,500 382,375
Mellon Bank Corp. ..................................................... 1,850 133,663
</TABLE>
---------------------
27
<PAGE> 161
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services -- 3.9%
Donaldson Lufkin & Jenrette, Inc. ..................................... 2,500 $ 89,063
First Data Corp. ...................................................... 14,000 558,250
First USA, Inc. ....................................................... 21,400 703,525
MBNA Corp. ............................................................ 5,000 201,875
Price (T. Rowe) Associates, Inc. ...................................... 9,450 341,381
Travelers Group, Inc. ................................................. 17,867 804,000
Insurance -- 3.2%
Allstate Corp. ........................................................ 13,500 813,375
American International Group, Inc. .................................... 4,000 460,000
Conseco, Inc. ......................................................... 7,000 391,125
Marsh & McLennan Cos. ................................................. 3,000 340,125
MGIC Investment Corp. ................................................. 3,500 262,062
------------
6,312,019
------------
HEALTHCARE -- 7.3%
Drugs -- 4.1%
American Home Products Corp. .......................................... 7,000 449,750
Amgen, Inc.+........................................................... 5,000 304,375
Bristol-Myers Squibb Co. .............................................. 3,000 341,250
Merck & Co., Inc. ..................................................... 10,000 830,000
Pfizer, Inc. .......................................................... 10,000 896,250
Health Services -- 1.0%
Columbia/HCA Healthcare Corp. ......................................... 18,000 720,000
Medical Products -- 2.2%
Abbott Laboratories, Inc. ............................................. 2,500 139,375
Boston Scientific Corp.+............................................... 6,000 350,250
Johnson & Johnson Co. ................................................. 6,000 318,750
Medtronic, Inc. ....................................................... 11,200 740,600
------------
5,090,600
------------
INDUSTRIAL & COMMERCIAL -- 8.7%
Aerospace & Military Technology -- 2.5%
AlliedSignal, Inc. .................................................... 5,000 366,250
Boeing Co. ............................................................ 7,000 695,625
United Technologies Corp. ............................................. 5,000 701,250
Business Services -- 2.1%
Cognizant Corp.+....................................................... 12,000 414,000
Corrections Corporation America+....................................... 10,000 248,750
Philip Environmental, Inc.+............................................ 10,000 130,000
Republic Industries, Inc.+............................................. 5,500 183,563
USA Waste Services, Inc.+.............................................. 14,690 473,752
Electrical Equipment -- 2.3%
General Electric Co. .................................................. 14,000 1,456,000
Westinghouse Electric Corp. ........................................... 10,000 187,500
Machinery -- 1.2%
Deere & Co. ........................................................... 9,000 401,625
Dover Corp. ........................................................... 8,100 432,337
Transportation -- 0.6%
Tidewater, Inc. ....................................................... 9,000 393,750
------------
6,084,402
------------
</TABLE>
- ---------------------
28
<PAGE> 162
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 1.8%
Broadcasting & Media -- 0.2%
New York Times Co. .................................................... 4,000 $ 149,500
Leisure & Tourism -- 1.6%
Disney (Walt) Co. ..................................................... 5,300 390,875
HFS, Inc.+............................................................. 1,300 84,175
Hilton Hotels Corp. ................................................... 10,000 292,500
Marriott International, Inc. .......................................... 7,000 390,250
------------
1,307,300
------------
INFORMATION TECHNOLOGY -- 10.6%
Computers & Business Equipment -- 4.3%
3Com Corp.+............................................................ 10,000 751,250
Honeywell, Inc. ....................................................... 6,000 411,750
International Business Machines Corp. ................................. 7,500 1,195,312
Sun Microsystems, Inc.+................................................ 11,000 640,750
Electronics -- 2.0%
Intel Corp. ........................................................... 8,500 1,078,438
Micron Technology, Inc. ............................................... 4,000 132,500
Newbridge Networks Corp.+.............................................. 7,400 220,150
Software -- 4.1%
Cisco Systems, Inc. ................................................... 20,000 1,357,500
Computer Associates International, Inc. ............................... 10,500 690,375
GT Interactive Software Corp.+......................................... 7,000 82,250
Oracle Systems Corp.+.................................................. 15,000 735,000
Telecommunications -- 0.2%
Deutsche Telekom ADR+.................................................. 5,800 123,975
------------
7,419,250
------------
MATERIALS -- 1.4%
Chemicals -- 1.4%
duPont (EI) de Nemours & Co. .......................................... 2,000 188,500
Monsanto Co. .......................................................... 20,000 795,000
------------
983,500
------------
UTILITIES -- 1.0%
Gas & Pipeline Utilities -- 1.0%
Consolidated Natural Gas Co. .......................................... 5,300 302,763
Transocean Offshore, Inc. ............................................. 6,250 376,562
------------
679,325
------------
TOTAL COMMON STOCK (cost $34,817,817).................................. 40,125,346
------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 35.6% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 4.9%
Financial Services -- 4.9%
Airplane Pass Through Trust 10.88% 2019................................ $ 100,000 111,500
Astra Over Seas Finance BV 8.75% 2003*................................. 115,000 116,725
CS First Boston Mortgage Securities Corp. CMO 7.18% 2027............... 300,000 302,250
DLJ Mortgage Acceptance Corp. 7.58% 2028*.............................. 100,000 105,078
Fleetwood Credit Grantor Trust 6.90% 2012.............................. 96,278 98,016
GE Capital Mortgage Services, Inc. 7.25% 2026(1)....................... 298,675 295,259
Merrill Lynch Mortgage Investors, Inc. zero coupon 2025................ 250,000 252,695
Merrill Lynch Mortgage Investors, Inc. 7.42% 2026...................... 100,000 103,086
</TABLE>
---------------------
29
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(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Nationslink Funding Corp. CMO 7.69% 2005............................... $ 250,000 $ 262,148
Residential Asset Securitization Trust 8.00% 2026(1)................... 293,755 302,146
Residential Funding Mortgage Securities 6.75% 2011(1).................. 292,370 284,695
Residential Funding Mortgage Securities 7.10% 2026..................... 200,000 195,625
Residential Funding Mortgage Securities 7.25% 2026..................... 298,105 295,310
Resolution Trust Corp. 6.80% 2027...................................... 192,469 189,852
Structured Asset Securities Corp. 6.53% 2028........................... 100,000 99,016
Structured Asset Securities Corp. 7.00% 2026(1)........................ 300,000 299,438
Structured Asset Securities Corp. 7.38% 2024........................... 140,000 141,028
------------
3,453,867
------------
INFORMATION TECHNOLOGY -- 0.3%
Electronics -- 0.3%
ADT Operations, Inc. zero coupon 2010.................................. 400,000 236,500
------------
MATERIALS -- 0.1%
Forest Products -- 0.1%
Buckeye Cellulose Corp. 9.25% 2008..................................... 100,000 103,000
------------
MUNICIPAL BONDS -- 1.3%
Municipal Bonds -- 1.3%
Dade County Florida Educational Facilities Authority Revenue 5.75%
2020................................................................. 40,000 40,884
Kern County California Pension Obligation 7.26% 2014................... 50,000 51,506
Long Beach California Pension Obligation 6.87% 2006.................... 30,000 30,378
Miami Beach Florida Special Obligation 8.60% 2021...................... 100,000 110,035
Newport News 7.05% 2025................................................ 250,000 244,298
Orange County California Pension Obligation 7.62% 2008................. 160,000 169,811
San Bernardino County California Financing Authority 6.87% 2008........ 15,000 15,251
San Bernardino County California Financing Authority 6.94% 2009........ 35,000 35,616
University Miami Florida Exchange Revenue 7.65% 2020................... 145,000 146,950
Ventura County California Pension 6.54% 2005........................... 30,000 29,601
------------
874,330
------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 1.3%
Foreign Government -- 1.3%
Federative Republic of Brazil 5.00% 2024(2)............................ 150,000 95,437
Federative Republic of Brazil 6.50% 2024(2)............................ 150,000 114,000
Republic of Argentina 5.25% 2023(2).................................... 250,000 157,500
Republic of Argentina 6.44% 2023(2).................................... 200,000 151,750
Republic of Colombia 9.00% 1997........................................ 300,000 303,000
United Mexican States 7.56% 2001*...................................... 100,000 100,163
------------
921,850
------------
REAL ESTATE -- 0.4%
Real Estate Companies -- 0.4%
Green Tree Financial Corp. 7.40% 2026.................................. 125,000 128,398
Green Tree Financial Corp. 7.60% 2027.................................. 125,000 127,217
------------
255,615
------------
U.S. GOVERNMENT & AGENCIES -- 27.3%
U.S. Government & Agencies -- 27.3%
Government National Mortgage Association 6.50% 2023.................... 271,860 265,914
Government National Mortgage Association 6.50% 2026.................... 336,804 327,434
United States Treasury Bonds 6.00% 2026................................ 335,000 315,895
United States Treasury Bonds 7.63% 2025................................ 150,000 172,429
</TABLE>
- ---------------------
30
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(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT & AGENCIES (continued)
U.S. Government & Agencies (continued)
United States Treasury Notes 5.75% 2000................................ $ 350,000 $ 349,563
United States Treasury Notes 5.88% 2001................................ 5,800,000 5,809,976
United States Treasury Notes 6.50% 2005................................ 1,450,000 1,493,949
United States Treasury Notes 6.50% 2006................................ 6,695,000 6,914,663
United States Treasury Notes 6.75% 2000................................ 1,200,000 1,236,564
United States Treasury Notes 6.88% 2000................................ 450,000 465,327
United States Treasury Notes 7.13% 2000................................ 150,000 156,093
United States Treasury Notes 7.50% 2005................................ 850,000 930,087
United States Treasury Notes 7.88% 2004................................ 600,000 669,750
------------
19,107,644
------------
TOTAL BONDS & NOTES (cost $24,394,080)................................. 24,952,806
------------
TOTAL INVESTMENT SECURITIES (cost $59,211,897)......................... 65,078,152
------------
SHORT-TERM SECURITIES -- 15.0%
----------------------------------------------------------------------------------------------------
CORPORATE SHORT-TERM NOTES -- 13.2%
Abbott Labatories 5.25% due 12/4/96.................................... 1,975,000 1,974,136
AlliedSignal, Inc. 5.25% due 12/2/96................................... 1,500,000 1,499,781
Assets Securitization Cooperative 5.27% due 12/5/96.................... 550,000 549,678
Ciesco L.P. 5.25% due 12/2/96.......................................... 220,000 219,968
Donnelley(R.R.) & Sons Co. 5.27% due 12/9/96........................... 1,000,000 998,829
General Electric Capital Corp. 5.28% due 1/8/97........................ 1,045,000 1,039,176
General Reinsurance Corp. 5.27% due 12/24/96........................... 1,000,000 996,633
Kimberly-Clark Corp. 5.24% due 12/17/96................................ 300,000 299,301
McKenna Triangle National Corp. 5.26% due 12/19/96..................... 645,000 643,304
Receivables Capital Corp. 5.29% due 12/2/96............................ 1,000,000 999,853
------------
9,220,659
------------
FEDERAL AGENCY OBLIGATIONS -- 1.5%
Federal Home Loan Mortgage Discount Notes 5.70% due 12/2/96............ 135,000 134,979
Federal National Mortgage Association 5.23% due 12/20/96............... 920,000 917,460
------------
1,052,439
------------
U.S. GOVERNMENT -- 0.3%
United States Treasury Bills 4.86% due 2/6/97.......................... 210,000 207,975
------------
TOTAL SHORT-TERM SECURITIES (cost $10,481,199)......................... 10,481,073
------------
TOTAL INVESTMENTS --
(cost $69,693,096) 107.9% 75,559,225
Liabilities in excess of other assets -- (7.9) (5,538,667)
------- ------------
NET ASSETS -- 100.0% $70,020,558
======= ============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
(1) Fair valued security; see Note 2
(2) Variable rate securities; rate as of November 30, 1996
CMO -- Collateralized Mortgage Obligation
See Notes to Financial Statements
---------------------
31
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- ---------------------
SUNAMERICA SERIES TRUST
ASSET ALLOCATION PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 58.3% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 10.6%
Apparel & Textiles -- 1.5%
Fruit Of The Loom, Inc.+............................................. 132,600 $ 4,723,875
Automotive -- 3.7%
Auto Desk, Inc. ..................................................... 63,700 1,783,600
Ford Motor Co. ...................................................... 135,200 4,427,800
Goodyear Tire & Rubber Co. .......................................... 114,300 5,543,550
Housing -- 1.9%
Centex Corp. ........................................................ 67,600 2,433,600
Lennar Corp. ........................................................ 132,200 3,437,200
Retail -- 3.5%
Fleming Cos., Inc. .................................................. 238,000 3,897,250
Penney (J.C.) Co, Inc. .............................................. 71,600 3,848,500
Sears, Roebuck & Co. ................................................ 69,100 3,437,725
------------
33,533,100
------------
CONSUMER STAPLES -- 6.3%
Food, Beverage & Tobacco -- 4.0%
Chiquita Brands International, Inc. ................................. 196,900 2,608,925
Philip Morris Cos., Inc. ............................................ 53,900 5,558,437
RJR Nabisco Holdings Corp. .......................................... 64,240 2,055,680
Supervalu, Inc. ..................................................... 78,200 2,316,675
Household Products -- 2.3%
Sunbeam Corp. ....................................................... 134,200 3,707,275
Unilever NV.......................................................... 20,300 3,514,438
------------
19,761,430
------------
ENERGY -- 6.2%
Energy Services -- 4.5%
Ashland, Inc. ....................................................... 62,100 2,980,800
CMS Energy Corp. .................................................... 43,500 1,413,750
Texaco, Inc. ........................................................ 47,600 4,718,350
Tosco Corp. ......................................................... 67,800 5,161,275
Energy Sources -- 1.7%
Atlantic Richfield Co. .............................................. 39,000 5,425,875
------------
19,700,050
------------
FINANCE -- 12.6%
Banks -- 4.4%
BankAmerica Corp. ................................................... 48,500 4,995,500
Chase Manhattan Corp. ............................................... 22,200 2,097,900
NationsBank Corp. ................................................... 42,900 4,445,512
Republic New York Corp. ............................................. 27,000 2,382,750
Financial Services -- 2.3%
Dean Witter, Discover & Co. ......................................... 80,500 5,504,188
Lehman Brothers Holdings, Inc. ...................................... 65,000 1,893,125
</TABLE>
- ---------------------
32
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(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance -- 5.9%
Aetna, Inc. ......................................................... 82,100 $ 5,921,462
CIGNA Corp. ......................................................... 33,800 4,778,475
Integon Corp. ....................................................... 15,100 290,675
Lincoln National Corp. .............................................. 54,100 2,914,638
Loews Corp. ......................................................... 21,800 2,021,950
Partner Residential Holding Corp. ................................... 81,000 2,632,500
------------
39,878,675
------------
HEALTHCARE -- 2.6%
Health Services -- 1.2%
Tenet Healthcare Corp.+.............................................. 166,300 3,720,963
Medical Products -- 1.4%
Baxter International, Inc. .......................................... 109,000 4,632,500
------------
8,353,463
------------
INDUSTRIAL & COMMERCIAL -- 6.5%
Aerospace & Military Technology -- 3.5%
Lear Corp.+.......................................................... 73,600 2,640,400
McDonnell Douglas Corp. ............................................. 122,600 6,482,475
Northrop Grumman Corp. .............................................. 23,400 1,945,125
Transportation -- 3.0%
AMR Corp.+........................................................... 32,900 3,002,125
Canadian Pacific Ltd. ............................................... 139,500 3,836,250
Consolidated Freightways, Inc. ...................................... 116,100 2,800,912
------------
20,707,287
------------
INFORMATION & ENTERTAINMENT -- 3.1%
Leisure & Tourism -- 3.1%
Brunswick Corp. ..................................................... 166,200 4,238,100
Continental Airlines, Inc. .......................................... 194,400 5,516,100
------------
9,754,200
------------
INFORMATION TECHNOLOGY -- 2.3%
Electronics -- 2.3%
Avnet, Inc. ......................................................... 91,600 5,358,600
Teradyne, Inc.+...................................................... 80,600 1,904,175
------------
7,262,775
------------
MATERIALS -- 6.4%
Chemicals -- 0.9%
Geon Co. ............................................................ 142,100 2,682,137
Forest Products -- 4.4%
Georgia-Pacific Corp. ............................................... 59,200 4,306,800
Owens Illinois, Inc.+................................................ 271,300 5,019,050
Stone Container Corp. ............................................... 198,400 3,050,400
Universal Corp. ..................................................... 52,400 1,506,500
Metals & Minerals -- 1.1%
AK Steel Holding Corp. .............................................. 92,600 3,530,375
------------
20,095,262
------------
</TABLE>
---------------------
33
<PAGE> 167
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 1.7%
Electric Utilities -- 1.7%
Long Island Lighting Co. ............................................ 212,700 $ 4,227,413
Unicom Corp. ........................................................ 43,600 1,160,850
------------
5,388,263
------------
TOTAL COMMON STOCK (cost $150,722,326)............................... 184,434,505
------------
PREFERRED STOCK -- 0.1%
----------------------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 0.1%
Broadcasting & Media -- 0.1%
Time Warner, Inc. Series K (cost $252,516)........................... 251 272,492
------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 34.9% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 0.2%
Housing -- 0.2%
Empresas Ica Sociedad ADS 9.75% 1998................................. $ 310,000 314,030
United States Home Corp. 7.95% 2001.................................. 405,000 409,050
------------
723,080
------------
CONSUMER STAPLES -- 0.7%
Food, Beverage & Tobacco -- 0.5%
Ceval Alimentos 11.13% 2004*......................................... 300,000 303,188
Instituto Fomento Industrial 8.38% 2001*............................. 400,000 414,750
RJR Nabisco, Inc. 8.00% 2001......................................... 280,000 284,418
RJR Nabisco, Inc. 8.63% 2002......................................... 750,000 775,695
Household Products -- 0.1%
American Standard, Inc. 11.38% 2004.................................. 390,000 422,175
------------
2,200,226
------------
ENERGY -- 0.9%
Energy Services -- 0.8%
Arkla, Inc. 8.88% 1999............................................... 675,000 715,595
Arkla, Inc. 9.20% 1997............................................... 250,000 257,322
Oryx Energy Co. 9.50% 1999........................................... 800,000 851,936
Tosco Corp. 7.00% 2000............................................... 550,000 561,110
YPF Sociedad Anonima 7.50% 2002(1)................................... 96,511 98,287
Energy Sources -- 0.1%
Empresa Col de Petroleos 7.25% 1998.................................. 240,000 242,400
------------
2,726,650
------------
FINANCE -- 9.5%
Banks -- 1.2%
Auburn Hills Trust 12.00% 2020....................................... 325,000 502,781
Banco Nacional de Comercio Exterior SNC 8.63% 2000*.................. 210,000 218,137
BankAmerica Corp. 9.75% 2000......................................... 400,000 445,404
Continental Bank NA 11.25% 2001...................................... 300,000 323,142
Continental Bank NA 12.50% 2001...................................... 450,000 553,990
Corporacion Andina de Fomento 7.25% 1998............................. 20,000 20,258
Security Pacific Corp. 11.50% 2000................................... 600,000 708,702
Signet Banking Corp. 9.63% 1999...................................... 775,000 834,388
</TABLE>
- ---------------------
34
<PAGE> 168
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services -- 8.3%
Airplanes Pass Through Trust 8.15% 2019(1)........................... $ 195,000 $ 206,944
APP International Finance Co BV 10.25% 2000.......................... 400,000 412,250
APP International Finance Co. BV 10.25% 2000......................... 120,000 122,400
Autoflow 1996 A Grantor Trust 7.48% 2002*(1)......................... 2,263,987 2,300,069
Bear Stearns Mortgage Securities, Inc. 6.75% 2008.................... 1,000,959 985,163
Case Equipment Loan Trust 7.30% 2002................................. 445,709 453,210
Chevy Chase Auto Receivables 5.80% 2002.............................. 276,286 275,766
Countrywide Funding Corp. 8.43% 1999................................. 450,000 476,861
Discover Card Master Trust I 5.60% 2005(2)........................... 510,000 512,387
Discover Card Master Trust I 5.73% 2004(2)........................... 300,000 302,529
Discover Card Master Trust I 5.76% 2013(2)........................... 2,790,000 2,823,982
Discover Card Master Trust I 5.93% 2013(2)........................... 2,000,000 2,015,620
Fasco Grantor Trust 6.65% 2001(1).................................... 1,623,765 1,634,675
Financiera Energetica Nacional SA 9.38% 2006*........................ 310,000 332,866
Fingerhut Financial Services 6.45% 2002.............................. 920,000 931,785
Ford Capital BV 9.38% 1998........................................... 225,000 233,273
Ford Capital BV 9.50% 2001........................................... 800,000 898,432
Ford Credit Auto Loan Master Trust 6.50% 2002........................ 550,000 554,637
General Motors Acceptance Corp. 5.63% 2001........................... 750,000 731,580
General Motors Acceptance Corp. 7.63% 1998........................... 585,000 598,010
Imexsa Export Trust 10.13% 2003*..................................... 300,000 315,225
Nacional Financiera 5.88% 1998....................................... 860,000 843,875
Nacional Financiera 8.13% 1998....................................... 210,000 210,788
Nacional Financiera 8.46% 1998....................................... 600,000 609,285
Nacional Financiera 9.00% 1999....................................... 80,000 81,350
Nacional Financiera SNC 8.13% 1998*.................................. 250,000 250,938
Navistar Financial 6.55% 2001........................................ 304,626 306,719
NWA Trust 8.26% 2006................................................. 258,495 280,777
Olympic Financial Ltd. 13.00% 2000................................... 510,000 561,000
Premier Auto Trust 4.90% 1998........................................ 141,353 140,646
Premier Auto Trust 7.85% 1998........................................ 1,040,000 1,045,200
Resolution Funding Corp. zero coupon 2021............................ 1,580,000 313,093
Sears Credit Account Master Trust 6.20% 2006......................... 700,000 701,967
Sears Credit Account Master Trust 8.10% 2004......................... 700,000 741,776
Standard Credit Card Master Trust 6.25% 1998......................... 260,000 260,650
Standard Credit Card Master Trust 8.25% 2003......................... 1,010,000 1,094,588
Standard Credit Card Master Trust 8.25% 2007......................... 1,610,000 1,789,113
------------
29,956,231
------------
HEALTHCARE -- 0.1%
Health Services -- 0.1%
Tenet Healthcare Corp.+ 9.63% 2002................................... 240,000 264,900
------------
INDUSTRIAL & COMMERCIAL -- 0.8%
Aerospace & Military Technology -- 0.1%
Newport News Shipbuilding, Inc. 8.63% 2006*.......................... 210,000 214,662
Tevecap SA 12.63% 2004*.............................................. 200,000 204,060
Business Services -- 0.3%
Loewen Group International, Inc. 7.75% 2001*......................... 650,000 664,332
Multicanal Participacoes SA 12.63% 2004*............................. 200,000 215,000
</TABLE>
---------------------
35
<PAGE> 169
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Multi-Industry -- 0.4%
Tenneco, Inc. 10.00% 1998............................................ $ 1,280,000 $ 1,360,986
------------
2,659,040
------------
INFORMATION & ENTERTAINMENT -- 3.1%
Broadcasting & Media -- 1.3%
CBS 7.75% 1999....................................................... 740,000 748,902
Tele-Communications, Inc. 9.65% 2003................................. 375,000 409,500
Time Warner, Inc. 7.95% 2000......................................... 2,145,000 2,234,339
Time Warner, Inc. 9.63% 2002......................................... 200,000 226,870
Viacom International, Inc. 9.13% 1999................................ 175,000 179,156
Viacom International, Inc. 10.25% 2001............................... 175,000 191,625
Cable -- 0.1%
Rogers Cablesystems 9.63% 2002....................................... 440,000 460,900
Leisure & Tourism -- 1.7%
America West Airlines 8.16% 2002..................................... 2,000,000 2,010,000
Blockbuster Entertainment Corp. 6.63% 1998........................... 580,000 581,149
Continental Airlines Pass Through Trust. 10.22% 2014................. 1,599,671 1,901,821
Norwest Airlines Corp. 8.97% 2015.................................... 880,000 944,918
------------
9,889,180
------------
INFORMATION TECHNOLOGY -- 1.5%
Communication Equipment -- 1.0%
Cablevision Industries Corp. 10.75% 2002............................. 1,760,000 1,927,042
TCI Communications, Inc. 6.28% 2003(1)(2)............................ 1,205,000 1,197,469
TCI Communications, Inc. 6.46% 2000.................................. 95,000 94,645
Computers & Business Equipment -- 0.3%
Comdisco, Inc. 5.75% 2001............................................ 500,000 490,395
Net Sat Services Ltd. 12.75% 2004*................................... 250,000 261,562
Telecommunications -- 0.2%
360 Communications Co. 7.13% 2003.................................... 725,000 728,436
------------
4,699,549
------------
MATERIALS -- 0.2%
Forest Products -- 0.2%
Grupo Industrial Durango SA de CV 12.00% 2001........................ 270,000 286,875
PT Indah Kiat Pulp & Paper Corp. 8.88% 2000.......................... 210,000 208,163
------------
495,038
------------
MUNICIPAL BONDS -- 0.4%
Municipal Bonds -- 0.4%
Connecticut State Health And Educational Facilities Authority 5.70%
2025............................................................... 450,000 456,457
Massachusetts Bay Transportation Authority Massachusetts 5.25%
2020............................................................... 305,000 297,378
Metropolitan Pier And Exposition Authority Illinois 5.25% 2027....... 450,000 431,510
------------
1,185,345
------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 1.3%
Foreign Government -- 1.3%
Province of Quebec 13.25% 2014....................................... 625,000 758,963
Republic of Argentina 4.98% 1998(1)(2)............................... 52,930 53,080
Republic of Argentina 8.63% 1998(1)(2)............................... 308,200 309,072
Republic of Argentina zero coupon 2000............................... 2,460,000 1,315,608
Rio De Janeiro 10.38% 1999........................................... 240,000 246,900
</TABLE>
- ---------------------
36
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(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
NON-U.S. GOVERNMENT OBLIGATIONS (continued)
Foreign Government (continued)
Russian Federation 9.25% 2001*....................................... $ 400,000 $ 398,200
State of Israel 6.38% 2005........................................... 635,000 620,395
United Mexican States 7.56% 1997(2).................................. 370,000 370,610
United Mexican States 9.75% 2001..................................... 110,000 113,781
------------
4,186,609
------------
REAL ESTATE -- 0.3%
Real Estate Investment Trusts -- 0.3%
Chelsea GCA Realty, Inc. 7.75% 2001.................................. 350,000 355,617
Tanger Properties Ltd. 8.75% 2001.................................... 560,000 567,185
------------
922,802
------------
U.S. GOVERNMENT & AGENCIES -- 15.4%
U.S. Government & Agencies -- 15.4%
Federal Home Loan Mortgage Corp. 6.00% 2008.......................... 1,000,000 952,191
Federal Home Loan Mortgage Corp. 6.00% 2016.......................... 1,518,401 1,497,523
Federal Home Loan Mortgage Corp. 7.50% 2099.......................... 5,000,000 5,065,600
Federal Home Loan Mortgage Corp. 8.20% 1998.......................... 310,000 311,066
Federal National Mortgage Association 3.50% 2019..................... 3,000,000 2,645,610
Federal National Mortgage Association 7.00% 2026..................... 6,392,932 6,346,966
Federal National Mortgage Association 7.50% TBA...................... 2,000,000 2,041,860
Federal National Mortgage Association 8.00% TBA...................... 1,000,000 1,027,810
Federal National Mortgage Association 8.50% 2005..................... 1,640,000 1,749,158
Federal National Mortgage Association 8.50% 2006..................... 78,043 81,530
Federal National Mortgage Association 8.50% 2008..................... 868,330 904,957
Federal National Mortgage Association 8.50% 2026..................... 991,978 1,033,819
Federal National Mortgage Association 8.50% TBA...................... 1,000,000 1,042,180
Federal National Mortgage Association 8.50% TBA...................... 3,000,000 3,126,540
Government National Mortgage Association 7.00% TBA................... 1,000,000 994,060
Government National Mortgage Association 7.50% 2023.................. 965,558 983,662
Government National Mortgage Association 7.50% TBA................... 4,000,000 4,057,480
Government National Mortgage Association 8.00% TBA................... 6,000,000 6,183,720
United States Treasury Bonds 7.88% 2021@............................. 280,000 326,724
United States Treasury Bonds 8.75% 2017@............................. 4,740,000 5,962,019
United States Treasury Bonds 13.75% 2004............................. 200,000 294,156
United States Treasury Bonds Strip zero coupon 2017.................. 50,000 12,867
United States Treasury Bonds Strip zero coupon 2019.................. 40,000 8,803
United States Treasury Bonds Strip zero coupon 2020@................. 5,410,000 1,152,005
United States Treasury Notes 7.88% 2004@............................. 920,000 1,026,950
------------
48,829,256
------------
UTILITIES -- 0.5%
Electric Utilities -- 0.3%
Central Maine Power Co. 7.45% 1999................................... 885,000 887,850
Gas & Pipeline Utilities -- 0.2%
Bridas Corp. 12.50% 1999............................................. 660,000 697,950
------------
1,585,800
------------
TOTAL BONDS & NOTES (cost $108,020,780).............................. 110,323,706
------------
TOTAL INVESTMENT SECURITIES (cost $258,995,622)...................... 295,030,703
------------
</TABLE>
---------------------
37
<PAGE> 171
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 3.4% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 2.2%
Capital One Bank 6.48% due 8/15/97................................... $ 1,120,000 $ 1,122,912
Capital One Bank 8.33% due 2/10/97................................... 1,350,000 1,355,589
Capital One Bank 8.63% due 1/15/97................................... 1,000,000 1,002,860
Comdisco, Inc. 9.75% due 1/15/97..................................... 1,700,000 1,707,242
First USA Bank 8.10% due 2/21/97..................................... 400,000 401,880
G.E. Capital Mortgage Services, Inc. 6.50% due 10/1/96............... 637,890 559,946
K Mart Corp. 8.70% due 8/1/97........................................ 700,000 698,222
------------
6,848,651
------------
FOREIGN SHORT-TERM NOTES -- 1.2%
APP International Finance Co. BV zero coupon due 4/3/97.............. 700,000 680,099
Banco de Brazil 9.50% due 8/28/97.................................... 80,000 81,300
British Aerospace PLC 7.55% due 5/15/97*............................. 150,000 150,897
Financiera Energetica Nacional SA 6.63% due 12/13/96................. 600,000 597,300
Petroleo Brasileiros SA 8.75% due 12/9/96............................ 50,000 50,008
Republic of Argentina zero coupon due 2/14/97........................ 1,180,000 1,162,300
Telebras 10.38% due 9/9/97........................................... 250,000 255,950
Telecom Brasil 10.00% due 6/16/97.................................... 250,000 254,075
Telecomunicacoes Brasileiras SA 10.00% due 3/31/97................... 260,000 264,713
Telecomunicacoes Brasileiras SA 10.00% due 10/22/97.................. 380,000 386,887
------------
3,883,529
------------
TOTAL SHORT-TERM SECURITIES (cost $10,763,117)....................... 10,732,180
------------
<CAPTION>
REPURCHASE AGREEMENT -- 9.9%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 9.9%
Agreement with State Street Bank & Trust Co., bearing interest of
5.45% dated 11/29/96, to be repurchased 12/02/96 in the amount of
$31,386,000 and collateralized by $28,750,000 U.S. Treasury Bonds
7.50% due 11/15/96 @ (cost $31,386,000)............................ 31,386,000 31,386,000
------------
TOTAL INVESTMENTS --
(cost $301,144,740) 106.6% 337,148,883
Liabilities in excess of other assets -- (6.6) (20,760,457)
------ ------------
NET ASSETS -- 100.0% $316,388,426
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
(1) Fair valued security; see Note 2
(2) Variable rate security; rate as of November 30, 1996
ADS -- American Depositary Shares
TBA -- Securities purchased on a forward commitment basis with an
approximate principal amount and no definitive maturity
date. The actual principal amount and maturity date will be
determined upon settlement date.
- ---------------------
38
<PAGE> 172
(UNAUDITED)
@ The security or a portion thereof represents collateral for the
following open futures contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
----------------------------------------------------------------------------------------------------------
NUMBER OF EXPIRATION VALUE AS OF UNREALIZED
CONTRACTS DESCRIPTION DATE NOVEMBER 30, 1996 APPRECIATION
----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
5 Long 90 Day Euro Dollar................... December 1996 $ 1,181,375 $ 5,593
5 Long 90 Day Euro Dollar................... March 1997 1,181,875 8,218
5 Long 90 Day Euro Dollar................... June 1997 1,180,875 9,218
4 Long 90 Day Euro Dollar................... September 1997 943,900 6,870
4 Long 90 Day Euro Dollar................... December 1997 942,500 6,470
4 Long 90 Day Euro Dollar................... June 1998 941,100 5,375
16 Long Standard & Poor's 500 Index.......... December 1997 6,066,000 712,655
10 Long U.S. 2 Year Note..................... March 1997 2,079,532 3,843
10 Long U.S. 5 Year Note..................... December 1996 1,082,188 249
107 Long U.S. 10 Year Note.................... March 1997 11,933,849 69,043
50 Long U.S. Treasury Bond................... December 1996 5,810,940 433,997
-------------
Net Unrealized Appreciation................................................ $1,261,531
=============
</TABLE>
See Notes to Financial Statements
---------------------
39
<PAGE> 173
- ---------------------
SUNAMERICA SERIES TRUST
UTILITY PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 83.2% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 1.1%
Automotive -- 1.1%
Ford Motor Co. ......................................................... 2,100 $ 68,775
------------
-
CONSUMER STAPLES -- 2.3%
Food, Beverage & Tobacco -- 2.3%
Philip Morris Cos., Inc. ............................................... 1,400 144,375
------------
-
ENERGY -- 0.6%
Energy Services -- 0.6%
Exxon Corp. ............................................................ 400 37,850
------------
-
FINANCE -- 1.9%
Banks -- 1.3%
Mellon Bank Corp. ...................................................... 1,100 79,475
Financial Services -- 0.6%
Merrill Lynch & Co., Inc. .............................................. 1,900 39,663
------------
-
119,138
------------
-
INDUSTRIAL & COMMERCIAL -- 1.0%
Business Services -- 1.0%
Browning-Ferris Industries, Inc. ....................................... 2,200 65,725
------------
-
INFORMATION TECHNOLOGY -- 2.0%
Telecommunications -- 2.0%
Sociedade Tecnica de Equipamentos SA.................................... 30,400 93,449
Telefonica Delaware Peru SA ADR......................................... 1,700 32,937
------------
-
126,386
------------
-
REAL ESTATE -- 2.9%
Real Estate Investment Trusts -- 2.9%
Meditrust Corp. ........................................................ 4,900 183,138
------------
-
UTILITIES -- 71.4%
Electric Utilities -- 38.8%
CINergy Corp. .......................................................... 2,200 73,700
DPL, Inc. .............................................................. 7,300 177,938
DQE, Inc. .............................................................. 5,400 159,300
Duke Power Co. ......................................................... 5,300 245,787
FPL Group, Inc.+........................................................ 5,700 262,912
GPU, Inc. .............................................................. 2,800 94,150
Iberdrola SA ........................................................... 6,500 75,015
Illinova Corp. ......................................................... 6,000 159,000
Korea Electric Power Corp. ADR.......................................... 1,700 29,963
National Power PLC Corp. ............................................... 4,400 140,250
NIPSCO Industries, Inc. ................................................ 3,600 139,500
Pacificorp.............................................................. 4,600 96,600
Pinnacle West Capital Corp. ............................................ 6,200 192,975
Portland General Corp. ................................................. 3,200 137,600
Southern Co. ........................................................... 6,000 133,500
</TABLE>
---------------------
40
<PAGE> 174
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Electric Utilities (continued)
Teco Energy, Inc. ...................................................... 5,300 $ 129,188
Telecomunicacoes Brasileras SA ADR...................................... 1,000 75,750
Texas Utilities Co. .................................................... 3,100 122,450
Gas & Pipeline Utilities -- 12.2%
American Water Works, Inc. ............................................. 600 11,850
CMS Energy Corp. ....................................................... 5,900 191,750
MCN Corp. .............................................................. 5,700 163,875
New Jersey Resources Corp. ............................................. 200 5,925
Pacific Enterprises..................................................... 4,900 150,062
PanEnergy Corp. ........................................................ 1,500 66,000
PECO Energy Co. ........................................................ 4,300 109,650
Williams Cos., Inc. .................................................... 1,200 67,350
Telephone -- 20.4%
Ameritech Corp. ........................................................ 3,300 194,287
AT&T Corp. ............................................................. 3,400 133,450
BellSouth Corp. ........................................................ 5,000 201,875
Compania de Telefonos Chile SA ADR...................................... 400 38,050
GTE Corp. .............................................................. 5,000 224,375
MCI Communications Corp. ............................................... 6,700 204,350
Pacific Telesis Group................................................... 4,100 151,700
SBC Communications, Inc. ............................................... 1,200 63,150
Sprint Corp. ........................................................... 1,700 71,188
-----------
4,494,465
-----------
TOTAL COMMON STOCK (cost $4,998,417).................................... 5,239,852
-----------
<CAPTION>
PREFERRED STOCK -- 10.6%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY -- 0.8%
Energy Sources -- 0.8%
Sun Co., Inc............................................................ 2,000 51,250
-----------
FINANCE -- 5.2%
Financial Services -- 4.1%
International Paper Capital Trust....................................... 500 24,063
Merrill Lynch & Co., Inc................................................ 2,200 143,825
Salomon, Inc............................................................ 1,100 32,862
Salomon, Inc............................................................ 1,000 60,250
Insurance -- 1.1%
Aetna, Inc.............................................................. 900 66,825
-----------
327,825
-----------
INDUSTRIAL & COMMERCIAL -- 0.5%
Business Services -- 0.5%
Amcor Ltd............................................................... 600 30,225
-----------
INFORMATION & ENTERTAINMENT -- 0.5%
Broadcasting & Media -- 0.5%
Hollinger International, Inc............................................ 3,000 32,625
-----------
</TABLE>
---------------------
41
<PAGE> 175
(UNAUDITED)
<TABLE>
<CAPTION>
PREFERRED STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY -- 1.4%
Communication Equipment -- 1.0%
AirTouch Communications, Inc.+.......................................... 2,100 $ 60,112
-----------
Computers & Business Equipment -- 0.4%
Alco Standard Corp...................................................... 300 28,088
-----------
88,200
-----------
MATERIALS -- 0.8%
Metals & Minerals -- 0.8%
Coeur D' Alene Mines Corp............................................... 2,800 47,950
-----------
UTILITIES -- 1.4%
Gas & Pipeline Utilities -- 1.4%
Williams Cos., Inc...................................................... 1,000 88,000
-----------
TOTAL PREFERRED STOCK (cost $635,592)................................... 666,075
-----------
<CAPTION>
PRINCIPAL
CONVERTIBLE BONDS -- 2.9% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 0.3%
Retail -- 0.3%
Saks Holdings, Inc. 5.50% 2006.......................................... $ 20,000 20,250
-----------
HEALTHCARE -- 0.7%
Drugs -- 0.7%
Alza Corp. 5.00% 2006................................................... 20,000 19,900
Tenet Healthcare Corp. 6.00% 2005....................................... 20,000 20,900
-----------
40,800
-----------
INFORMATION TECHNOLOGY -- 0.7%
Electronics -- 0.7%
Solectron Corp. 6.00% 2006.............................................. 40,000 45,300
-----------
UTILITIES -- 1.2%
Electric Utilities -- 1.2%
Korea Electric Power Corp. 5.00% 2001................................... 30,000 29,400
New World Infrastructure Ltd. 5.00% 2001................................ 40,000 47,450
-----------
76,850
-----------
TOTAL CONVERTIBLE BONDS (cost $167,427)................................. 183,200
-----------
TOTAL INVESTMENT SECURITIES (cost $5,801,436)........................... 6,089,127
-----------
<CAPTION>
SHORT-TERM SECURITIES -- 5.3%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 5.3%
Cayman Island Time Deposit with State Street Bank & Trust Co.
2.75% due 12/02/96 (cost $335,000).................................... 335,000 335,000
-----------
TOTAL INVESTMENTS --
(cost $6,136,436) 102.0% 6,424,127
Liabilities in excess of other assets -- (2.0) (125,480)
------ -----------
NET ASSETS -- 100.0% $6,298,647
====== ===========
</TABLE>
-----------------------------
* Resale restricted to qualified institutional buyers
ADR -- American Depository Receipt
See Notes to Financial Statements
- ---------------------
42
<PAGE> 176
- ---------------------
SUNAMERICA SERIES TRUST
GROWTH-INCOME PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 93.9% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 4.7%
Automotive -- 1.0%
Goodyear Tire & Rubber Co. .......................................... 67,400 $ 3,268,900
Retail -- 3.7%
CompUSA, Inc. ....................................................... 30,000 1,350,000
Federated Department Stores, Inc.+................................... 79,700 2,719,763
Kohl's Corp.+........................................................ 40,000 1,595,000
Kroger Co.+.......................................................... 40,000 1,845,000
Price/Costco, Inc.+.................................................. 94,700 2,201,775
Sears, Roebuck & Co. ................................................ 45,000 2,238,750
------------
15,219,188
------------
CONSUMER STAPLES -- 9.8%
Food, Beverage & Tobacco -- 4.2%
Campbell Soup Co. ................................................... 38,000 3,139,750
Philip Morris Cos., Inc. ............................................ 66,000 6,806,250
RJR Nabisco Holdings Corp. .......................................... 45,000 1,743,750
Wrigley, (Wm) Jr. Co. ............................................... 35,000 2,043,125
Household Products -- 5.6%
Colgate-Palmolive Co. ............................................... 35,000 3,241,875
Gillette Co. ........................................................ 72,700 5,361,625
Procter & Gamble Co. ................................................ 55,000 5,981,250
Sunbeam Corp. ....................................................... 65,000 1,795,625
United States Industries, Inc. ...................................... 55,200 1,628,400
------------
31,741,650
------------
ENERGY -- 9.2%
Energy Services -- 6.0%
Baker Hughes, Inc. .................................................. 44,000 1,611,500
Exxon Corp. ......................................................... 149,700 14,165,363
Schlumberger Ltd. ................................................... 36,000 3,744,000
Energy Sources -- 3.2%
Apache Corp. ........................................................ 55,000 2,000,625
BJ Services Co.+..................................................... 38,000 1,814,500
Enron Corp. ......................................................... 108,000 4,941,000
Transocean Offshore, Inc. ........................................... 28,000 1,687,000
------------
29,963,988
------------
FINANCE -- 17.5%
Banks -- 5.2%
Chase Manhattan Corp. ............................................... 39,000 3,685,500
First Chicago Corp. ................................................. 68,052 3,998,055
First Union Corp. ................................................... 66,900 5,109,487
NationsBank Corp. ................................................... 40,500 4,196,813
Financial Services -- 7.4%
American Express Co. ................................................ 70,000 3,657,500
Dean Witter, Discover & Co. ......................................... 50,000 3,418,750
First Data Corp. .................................................... 58,000 2,312,750
Household International, Inc. ....................................... 22,000 2,084,500
MBNA Corp. .......................................................... 80,000 3,230,000
</TABLE>
---------------------
43
<PAGE> 177
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Merrill Lynch & Co., Inc. ........................................... 53,000 $ 4,253,250
Morgan Stanley Group, Inc. .......................................... 34,100 2,050,262
Travelers Group, Inc. ............................................... 69,400 3,123,000
Insurance -- 4.9%
American International Group, Inc. .................................. 42,000 4,830,000
General Reinsurance Group............................................ 17,900 3,020,625
ITT Hartford Group................................................... 28,000 1,914,500
NAC Reinsurance Corp. ............................................... 40,000 1,460,000
PMI Group, Inc. ..................................................... 48,300 2,801,400
Travelers Aetna Property Casualty Corp. ............................. 55,000 1,897,500
-------------
57,043,892
-------------
HEALTHCARE -- 13.4%
Drugs -- 6.9%
Amgen, Inc.+......................................................... 45,000 2,739,375
Biogen, Inc.+........................................................ 40,000 1,530,000
Merck & Co., Inc. ................................................... 100,900 8,374,700
Pfizer, Inc. ........................................................ 53,000 4,750,125
Schering-Plough Corp. ............................................... 72,500 5,165,625
Health Services -- 2.6%
Columbia/HCA Healthcare Corp. ....................................... 127,050 5,082,000
Oxford Health Plans, Inc.+........................................... 33,000 1,914,000
Pacificare Health Systems, Inc.+..................................... 19,000 1,501,000
Medical Products -- 3.9%
Abbott Laboratories.................................................. 88,000 4,906,000
Johnson & Johnson Co. ............................................... 94,000 4,993,750
Medtronic, Inc. ..................................................... 41,000 2,711,125
-------------
43,667,700
-------------
INDUSTRIAL & COMMERCIAL -- 12.4%
Aerospace & Military Technology -- 3.6%
AlliedSignal, Inc. .................................................. 90,000 6,592,500
General Dynamics Corp. .............................................. 33,000 2,433,750
United Technologies Corp. ........................................... 19,000 2,664,750
Business Services -- 0.9%
USA Waste Services, Inc.+............................................ 50,000 1,612,500
Whitman Corp. ....................................................... 60,200 1,384,600
Electrical Equipment -- 4.3%
General Electric Co. ................................................ 135,000 14,040,000
Machinery -- 1.5%
Applied Materials, Inc.+............................................. 45,000 1,715,625
Case Corp. .......................................................... 33,000 1,732,500
Centocor, Inc.+...................................................... 53,200 1,469,650
Multi-Industry -- 0.4%
Tyco International Ltd. ............................................. 22,900 1,253,775
Transportation -- 1.7%
Burlington Northern Santa Fe......................................... 20,000 1,797,500
Canadian Pacific Ltd. ............................................... 60,000 1,650,000
Union Pacific Corp. ................................................. 33,000 1,922,250
-------------
40,269,400
-------------
</TABLE>
- ---------------------
44
<PAGE> 178
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 4.5%
Broadcasting & Media -- 2.5%
Gannett Co., Inc. ................................................... 20,000 $ 1,570,000
Lin Television Corp.+................................................ 34,000 1,364,250
New York Times Co., Class A.......................................... 40,000 1,495,000
Tele-Communications Liberty Media Group+............................. 64,650 1,616,250
Time Warner, Inc. ................................................... 55,000 2,241,250
Leisure & Tourism -- 2.0%
Brinker International, Inc.+......................................... 80,500 1,489,250
Carnival Corp. ...................................................... 62,200 1,967,075
Disney (Walt) Co. ................................................... 40,000 2,950,000
-------------
14,693,075
-------------
INFORMATION TECHNOLOGY -- 14.5%
Communication Equipment -- 0.8%
AirTouch Communications, Inc.+....................................... 103,000 2,639,375
Computers & Business Equipment -- 2.3%
3Com Corp.+.......................................................... 30,000 2,253,750
COMPAQ Computer Corp.+............................................... 35,400 2,805,450
Dell Computer Corp.+................................................. 25,000 2,540,625
Electronics -- 6.7%
ADT Ltd. ............................................................ 70,000 1,435,000
Altera Corp.+........................................................ 33,000 2,491,500
Intel Corp. ......................................................... 114,000 14,463,750
National Semiconductor Corp.+........................................ 75,000 1,837,500
Solectron Corp.+..................................................... 28,000 1,638,000
Software -- 4.7%
Cisco Systems, Inc.+................................................. 60,000 4,072,500
Microsoft Corp.+..................................................... 43,000 6,745,625
Netscape Communications Corp.+....................................... 30,000 1,676,250
Oracle Systems Corp.+................................................ 55,000 2,695,000
-------------
47,294,325
-------------
MATERIALS -- 3.7%
Chemicals -- 2.1%
Monsanto Co. ........................................................ 120,000 4,770,000
Morton International, Inc. .......................................... 54,000 2,180,250
Forest Products -- 1.0%
Crown, Cork & Seal, Inc. ............................................ 32,800 1,738,400
Louisiana Pacific Corp. ............................................. 60,000 1,357,500
Metals & Minerals -- 0.6%
Reynolds Metals Co. ................................................. 33,000 1,963,500
-------------
12,009,650
-------------
REAL ESTATE -- 0.6%
Real Estate Investment Trusts -- 0.6%
Starwood Lodging Trust............................................... 38,000 1,814,500
-------------
UTILITIES -- 3.6%
Electric Utilities -- 2.1%
FPL Group, Inc. ..................................................... 145,000 6,688,125
</TABLE>
---------------------
45
<PAGE> 179
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Gas & Pipeline Utilities -- 1.5%
CINergy Corp. ....................................................... 150,000 $ 5,025,000
-------------
11,713,125
-------------
TOTAL INVESTMENT SECURITIES (cost $238,355,190)...................... 305,430,493
-------------
PRINCIPAL
SHORT-TERM SECURITIES -- 5.9% AMOUNT
----------------------------------------------------------------------------------------------------
TIME DEPOSIT -- 5.6%
Cayman Island Time Deposit with State Street Bank & Trust Co.
4.88% due 12/02/96@................................................ $18,251,000 18,251,000
-------------
U.S. GOVERNMENT -- 0.3%
United States Treasury Bills 4.88% due 12/12/96@..................... 265,000 262,899
United States Treasury Bills 5.01% due 12/12/96@..................... 240,000 238,098
United States Treasury Bills 5.05% due 12/12/96@..................... 550,000 549,190
-------------
TOTAL SHORT-TERM SECURITIES (cost $19,304,389)....................... 19,301,187
-------------
TOTAL INVESTMENTS --
(cost $257,659,579) 99.8% 324,731,680
Other assets less liabilities -- 0.2 731,645
------ -------------
NET ASSETS -- 100.0% $325,463,325
====== ==============
</TABLE>
-----------------------------
+ Non-income producing securities
@ The security or a portion thereof represents collateral for the
following open futures contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
-----------------------------------------------------------------------------------------------------------
NUMBER OF EXPIRATION VALUE AS OF UNREALIZED
CONTRACTS DESCRIPTION DATE NOVEMBER 30, 1996 APPRECIATION
-----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
45 Long Standard & Poor's 500 Index............. December 1996 $17,060,625 $962,381
===========
</TABLE>
See Notes to Financial Statements
- ---------------------
46
<PAGE> 180
- ---------------------
SUNAMERICA SERIES TRUST
FEDERATED VALUE PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 91.1% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 7.3%
Automotive -- 2.7%
Chrysler Corp. .......................................................... 1,100 $ 39,050
General Motors Corp. .................................................... 2,000 115,250
General Motors Corp., Class H............................................ 3,400 185,300
Retail -- 4.6%
Dayton Hudson Corp. ..................................................... 4,500 174,937
Dillard Department Stores, Inc. ......................................... 3,700 113,313
Sears, Roebuck & Co. .................................................... 2,400 119,400
Wal-Mart Stores, Inc. ................................................... 6,300 160,650
-------------
907,900
-------------
CONSUMER STAPLES -- 11.5%
Food, Beverage & Tobacco -- 5.3%
CPC International, Inc. ................................................. 2,400 199,800
Heinz (H.J.) Co. ........................................................ 3,900 147,713
IBP, Inc. ............................................................... 5,500 136,125
Philip Morris Cos., Inc. ................................................ 1,700 175,312
Household Products -- 6.2%
Avon Products, Inc. ..................................................... 2,000 111,500
Kimberly-Clark Corp. .................................................... 2,000 195,500
Rubbermaid, Inc. ........................................................ 7,500 180,000
Unilever NV.............................................................. 1,700 294,312
-------------
1,440,262
-------------
ENERGY -- 10.0%
Energy Services -- 7.4%
Chevron Corp. ........................................................... 1,400 93,800
Exxon Corp. ............................................................. 1,200 113,550
Mobil Corp. ............................................................. 2,000 242,000
Royal Dutch Petroleum Co. ADR............................................ 600 101,925
Texaco, Inc. ............................................................ 1,100 109,037
Union Pacific Resources Group, Inc. ..................................... 5,200 155,350
Occidental Petroleum Corp. .............................................. 4,500 108,000
Energy Sources -- 2.6%
Columbia Gas Systems, Inc. .............................................. 2,500 161,563
Enron Corp. ............................................................. 3,500 160,125
-------------
1,245,350
-------------
FINANCE -- 14.4%
Banks -- 3.5%
Chase Manhattan Corp. ................................................... 1,300 122,850
Citicorp................................................................. 1,000 109,250
National City Corp. ..................................................... 2,000 92,750
Republic New York Corp. ................................................. 1,300 114,725
</TABLE>
---------------------
47
<PAGE> 181
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services -- 5.4%
Dean Witter, Discover & Co. ............................................. 1,300 $ 88,888
Federal Home Loan Mortgage Corp. ........................................ 900 102,825
Federal National Mortgage Association.................................... 5,200 214,500
H & R Block, Inc. ....................................................... 5,500 160,875
Travelers Group, Inc. ................................................... 2,267 102,000
Insurance -- 5.5%
Aflac, Inc. ............................................................. 4,000 167,000
Allstate Corp. .......................................................... 2,200 132,550
CIGNA Corp. ............................................................. 800 113,100
Loews Corp. ............................................................. 900 83,475
Marsh & McLennan Cos. ................................................... 1,700 192,737
-------------
1,797,525
-------------
HEALTHCARE -- 11.3%
Drugs -- 3.9%
American Home Products Corp. ............................................ 2,400 154,200
Bristol-Myers Squibb Co. ................................................ 2,000 227,500
Merck & Co., Inc. ....................................................... 1,200 99,600
Health Services -- 2.3%
Columbia/HCA Healthcare Corp. ........................................... 3,600 144,000
Healthsource, Inc.+...................................................... 5,200 58,500
United Healthcare Corp. ................................................. 2,000 86,250
Medical Products -- 5.1%
Abbott Laboratories...................................................... 3,500 195,125
Bausch & Lomb, Inc. ..................................................... 2,600 96,525
Becton Dickinson & Co. .................................................. 2,600 109,200
Biomet, Inc.+............................................................ 6,500 107,250
Tambrands, Inc. ......................................................... 3,000 128,250
-------------
1,406,400
-------------
INDUSTRIAL & COMMERCIAL -- 8.9%
Aerospace & Military Technology -- 2.3%
Lockheed Martin Corp. ................................................... 739 66,972
Textron, Inc. ........................................................... 2,100 200,287
Martin Marietta Materials, Inc. ......................................... 759 17,837
Business Services -- 1.7%
Browning-Ferris Industries, Inc. ........................................ 7,900 212,312
Electrical Equipment -- 1.0%
General Electric Co. .................................................... 1,200 124,800
Machinery -- 1.2%
Ingersoll-Rand Co. ...................................................... 3,200 148,800
Multi-Industry -- 1.0%
Rockwell International Corp. ............................................ 2,000 128,500
Transportation -- 1.7%
AMR Corp.+............................................................... 1,300 118,625
Union Pacific Corp. ..................................................... 1,500 87,375
-------------
1,105,508
-------------
INFORMATION & ENTERTAINMENT -- 1.2%
Broadcasting & Media -- 0.7%
Gannett Co., Inc. ....................................................... 1,100 86,350
</TABLE>
- ---------------------
48
<PAGE> 182
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT (continued)
Entertainment Products -- 0.2%
Mattel, Inc. ............................................................ 700 $ 21,613
Leisure & Tourism -- 0.3%
Disney (Walt) Co. ....................................................... 600 44,250
-------------
152,213
-------------
INFORMATION TECHNOLOGY -- 8.7%
Computers & Business Equipment -- 3.6%
Automatic Data Processing, Inc. ......................................... 1,400 60,025
Electronic Data Systems Corp. ........................................... 3,800 183,825
Hewlett-Packard Co. ..................................................... 1,900 102,363
International Business Machines Corp. ................................... 600 95,625
Electronics -- 2.5%
Intel Corp. ............................................................. 1,400 177,625
Solectron Corp. ......................................................... 2,300 134,550
Software -- 1.7%
Computer Associates International, Inc. ................................. 1,700 111,775
Oracle Systems Corp.+.................................................... 2,000 98,000
Telecommunications -- 0.9%
Lucent Technologies, Inc. ............................................... 2,300 117,875
-------------
1,081,663
-------------
MATERIALS -- 6.7%
Chemicals -- 5.2%
Betz Laboratories, Inc. ................................................. 1,600 92,600
Eastman Kodak Co. ....................................................... 900 72,900
Monsanto Co. ............................................................ 3,200 127,200
Morton International, Inc. .............................................. 4,800 193,800
Sigma-Aldrich Corp. ..................................................... 500 31,250
Great Lakes Chemical Corp. .............................................. 2,300 123,337
Forest Products -- 1.5%
Consolidated Papers, Inc. ............................................... 2,100 104,213
International Paper Co. ................................................. 2,000 85,000
-------------
830,300
-------------
UTILITIES -- 11.1%
Electric Utilities -- 1.6%
FPL Group, Inc. ......................................................... 2,100 96,863
Southern Co. ............................................................ 4,500 100,125
Gas & Pipeline Utilities -- 3.3%
Pacific Gas & Electric Co. .............................................. 7,900 190,587
Unocal Corp. ............................................................ 2,400 97,800
USX Marathon Group....................................................... 5,500 125,813
Telephone -- 6.2%
AT&T Corp. .............................................................. 2,500 98,125
GTE Corp. ............................................................... 3,500 157,062
MCI Communications Corp. ................................................ 9,100 277,550
Pacific Telesis Group.................................................... 6,500 240,500
-------------
1,384,425
-------------
TOTAL INVESTMENT SECURITIES (cost $10,155,437)........................... 11,351,546
-------------
</TABLE>
---------------------
49
<PAGE> 183
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 7.7% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 7.7%
Cayman Island Time Deposit with State Street Bank & Trust Co.
2.75% due 12/02/96 (cost $964,000)..................................... $964,000 $ 964,000
-------------
TOTAL INVESTMENTS --
(cost $11,119,437) 98.8% 12,315,546
Other assets less liabilities -- 1.2 143,982
------ -------------
NET ASSETS -- 100.0% $12,459,528
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depositary Receipt
See Notes to Financial Statements
- ---------------------
50
<PAGE> 184
- ---------------------
SUNAMERICA SERIES TRUST
VENTURE VALUE PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 90.8% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 3.3%
Automotive -- 1.6%
General Motors Corp. ................................................ 149,200 $ 8,597,650
Housing -- 0.2%
Masco Corp. ......................................................... 25,100 916,150
Retail -- 1.5%
Federated Department Stores, Inc.+................................... 126,800 4,327,050
Harcourt General, Inc. .............................................. 61,500 3,359,437
------------
17,200,287
------------
CONSUMER STAPLES -- 8.1%
Food, Beverage & Tobacco -- 7.7%
American Brands, Inc. ............................................... 4,200 200,550
Archer-Daniels-Midland Co. .......................................... 240,905 5,299,910
Coca-Cola Co. ....................................................... 105,600 5,398,800
Guinness PLC......................................................... 313,000 2,341,712
McDonald's Corp. .................................................... 196,200 9,172,350
Nestle SA ADR........................................................ 60,300 3,275,846
Philip Morris Cos., Inc. ............................................ 110,700 11,415,937
Tyson Foods, Inc. ................................................... 74,400 2,436,600
Household Products -- 0.4%
Kimberly-Clark Corp. ................................................ 20,900 2,042,975
Maytag Corp. ........................................................ 4,200 80,325
------------
41,665,005
------------
ENERGY -- 8.5%
Energy Services -- 6.8%
Amerada Hess Corp. .................................................. 1,800 105,975
Amoco Corp. ......................................................... 1,400 108,675
Burlington Resources, Inc. .......................................... 228,400 12,105,200
Chevron Corp. ....................................................... 7,600 509,200
Cooper Cameron, Corp.+............................................... 11,000 723,250
Energy Ventures, Inc.+............................................... 76,800 3,772,800
Exxon Corp. ......................................................... 11,800 1,116,575
Halliburton Co. ..................................................... 157,200 9,471,300
Mobil Corp. ......................................................... 1,100 133,100
Schlumberger Ltd. ................................................... 64,400 6,697,600
Sonat, Inc. ......................................................... 2,200 113,850
Energy Sources -- 1.7%
Atlantic Richfield Co. .............................................. 2,400 333,900
Edison International................................................. 700 13,913
Noble Affiliates, Inc. .............................................. 135,057 6,364,562
Union Pacific Resources Group, Inc. ................................. 75,721 2,262,165
------------
43,832,065
------------
FINANCE -- 40.7%
Banks -- 9.4%
Banc One Corp. ...................................................... 118,980 5,666,422
BankAmerica Corp. ................................................... 86,300 8,888,900
First Bank Systems, Inc. ............................................ 127,100 9,262,412
</TABLE>
---------------------
51
<PAGE> 185
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Banks (continued)
First Union Corp. ................................................... 2,000 $ 152,750
Golden West Financial Corp. ......................................... 70,600 4,765,500
State Street Boston Corp. ........................................... 114,000 7,709,250
Wells Fargo & Co. ................................................... 41,800 11,897,325
Financial Services -- 17.5%
American Express Co. ................................................ 308,900 16,140,025
Barnett Banks, Inc. ................................................. 89,500 3,938,000
Citicorp. ........................................................... 113,075 12,353,444
Dean Witter, Discover & Co. ......................................... 121,000 8,273,375
Donaldson Lufkin & Jenrette, Inc. ................................... 116,500 4,150,313
Federal Home Loan Mortgage Corp. .................................... 82,100 9,379,925
Morgan (J.P.) & Co., Inc. ........................................... 79,100 7,465,063
Morgan Stanley Asia-Pacific Fund..................................... 375,367 3,988,274
Morgan Stanley Group, Inc. .......................................... 176,300 10,600,037
Travelers Group, Inc. ............................................... 313,533 14,109,000
Insurance -- 13.8%
20th Century Industries+............................................. 141,700 2,125,500
Allstate Corp. ...................................................... 198,395 11,953,299
American International Group, Inc. .................................. 40,200 4,623,000
Berkley (W.R.) Corp. ................................................ 129,300 6,788,250
Chubb Corp. ......................................................... 175,300 9,510,025
Equitable Cos., Inc. ................................................ 331,700 8,209,575
General Reinsurance Group............................................ 71,600 12,082,500
NAC Reinsurance Corp. ............................................... 34,400 1,255,600
Progressive Corp., Ohio.............................................. 74,600 5,203,350
Transatlantic Holdings, Inc. ........................................ 86,100 6,855,712
UNUM Corp. .......................................................... 39,200 2,788,100
------------
210,134,926
------------
HEALTHCARE -- 3.1%
Drugs -- 2.5%
Bristol-Myers Squibb Co. ............................................ 900 102,375
Lilly (Eli) & Co. ................................................... 43,900 3,358,350
Merck & Co., Inc. ................................................... 15,300 1,269,900
Pfizer, Inc. ........................................................ 89,500 8,021,437
Medical Products -- 0.6%
American Home Products Corp. ........................................ 2,200 141,350
Johnson & Johnson Co. ............................................... 54,100 2,874,063
------------
15,767,475
------------
INDUSTRIAL & COMMERCIAL -- 7.2%
Aerospace & Military Technology -- 2.5%
Boeing Co. .......................................................... 83,600 8,307,750
General Motors Corp., Class H........................................ 84,900 4,627,050
Business Services -- 0.0%
ACNielsen Corp.+..................................................... 133 2,311
Cognizant Corp.+..................................................... 400 13,800
Dun & Bradstreet Corp. .............................................. 400 9,050
WMX Technologies, Inc. .............................................. 1,400 50,400
Electrical Equipment -- 0.1%
General Electric Co. ................................................ 5,800 603,200
</TABLE>
- ---------------------
52
<PAGE> 186
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Machinery -- 1.0%
Applied Materials, Inc.+............................................. 92,200 $ 3,515,125
Smith International, Inc.+........................................... 41,200 1,684,050
Transportation -- 3.6%
Burlington Northern Santa Fe......................................... 108,300 9,733,462
Illinois Central Corp. .............................................. 58,450 1,979,994
Union Pacific Corp. ................................................. 117,600 6,850,200
------------
37,376,392
------------
INFORMATION & ENTERTAINMENT -- 3.7%
Broadcasting & Media -- 3.0%
Gannett Co., Inc. ................................................... 90,900 7,135,650
News Corp., Ltd. ADR................................................. 261,200 4,505,700
Tribune Co. ......................................................... 43,100 3,728,150
Washington Post Co., Class B......................................... 100 34,800
Leisure & Tourism -- 0.7%
Disney (Walt) Co. ................................................... 52,200 3,849,750
------------
19,254,050
------------
INFORMATION TECHNOLOGY -- 10.3%
Communication Equipment -- 0.7%
AirTouch Communications, Inc.+....................................... 141,900 3,636,188
SBC Communications, Inc. ............................................ 1,200 63,150
Computers & Business Equipment -- 5.8%
Hewlett-Packard Co. ................................................. 185,000 9,966,875
International Business Machines Corp. ............................... 91,000 14,503,125
Komag, Inc.+......................................................... 170,700 5,505,075
Electronics -- 3.6%
Intel Corp. ......................................................... 116,400 14,768,250
Novellus Systems, Inc.+.............................................. 63,900 3,674,250
Telecommunications -- 0.2%
Globalstar Telecommunications Ltd.+.................................. 9,500 655,500
Lucent Technologies, Inc. ........................................... 4,245 217,556
------------
52,989,969
------------
MATERIALS -- 3.7%
Chemicals -- 1.6%
Dow Chemical Co. .................................................... 600 50,250
Eastman Kodak Co. ................................................... 104,400 8,456,400
Forest Products -- 1.0%
Fort Howard Corp.+................................................... 123,900 3,500,175
International Paper Co. ............................................. 1,300 55,250
Jefferson Smurfit Corp.+............................................. 104,900 1,416,150
Union Camp Corp. .................................................... 2,000 98,250
Metals & Minerals -- 1.1%
Martin Marietta Materials, Inc. ..................................... 235,000 5,522,500
------------
19,098,975
------------
REAL ESTATE -- 2.1%
Real Estate Investment Trusts -- 2.1%
Crescent Real Estate Equities........................................ 96,100 4,216,387
Federal Realty Investment Trust...................................... 45,600 1,185,600
Kimco Realty Corp. .................................................. 9,650 281,056
</TABLE>
---------------------
53
<PAGE> 187
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE (continued)
Real Estate Investment Trusts (continued)
Mid-Atlantic Realty Trust............................................ 27,800 $ 291,900
Saul Centers, Inc. .................................................. 28,900 440,725
Simon DeBartolo Group, Inc. ......................................... 400 10,950
United Dominion Realty Trust, Inc. .................................. 50,300 741,925
Vornado Realty Trust................................................. 71,800 3,239,975
Weingarten Realty Investors.......................................... 14,500 567,313
------------
10,975,831
------------
UTILITIES -- 0.1%
Electric Utilities -- 0.0%
Carolina Power & Light Co. .......................................... 900 32,962
Duke Power Co. ...................................................... 1,400 64,925
Enova Corp. ......................................................... 500 11,188
New England Electric Systems......................................... 500 17,125
Southern Co. ........................................................ 1,600 35,600
Wisconsin Energy Corp. .............................................. 800 21,400
Telephone -- 0.1%
AT&T Corp. .......................................................... 13,900 545,575
------------
728,775
------------
TOTAL COMMON STOCK (cost $378,127,522)............................... 469,023,750
------------
PREFERRED STOCK -- 0.4%
----------------------------------------------------------------------------------------------------
FINANCE -- 0.2%
Banks -- 0.2%
Banc One Corp., Series C............................................. 7,200 654,300
------------
INFORMATION TECHNOLOGY -- 0.2%
Communication Equipment -- 0.2%
AirTouch Communications, Inc. Class B convertible 6.00%.............. 19,580 560,478
AirTouch Communications, Inc. Class C convertible 4.25%.............. 12,597 579,462
------------
1,139,940
------------
TOTAL PREFERRED STOCK (cost $1,570,968).............................. 1,794,240
------------
TOTAL INVESTMENT SECURITIES (cost $379,698,490)...................... 470,817,990
------------
</TABLE>
- ---------------------
54
<PAGE> 188
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
PRINCIPAL
SHORT-TERM SECURITIES -- 8.8% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FEDERAL AGENCY OBLIGATIONS -- 8.8%
Federal Home Loan Bank Consolidated 5.20% due 12/05/96............... $13,040,000 13,032,466
Federal Home Loan Mortgage Discount Notes 5.22% due 12/09/96......... 11,200,000 11,187,008
Federal Home Loan Mortgage Discount Notes 5.33% due 12/02/96......... 6,565,000 6,564,028
Federal National Mortgage Association Discount Notes 5.30% due
12/06/96........................................................... 14,890,000 14,879,039
------------
TOTAL SHORT-TERM SECURITIES (cost $45,662,541)....................... 45,662,541
------------
TOTAL INVESTMENTS --
(cost $425,361,031) 100.0% 516,480,532
Liabilities in excess of other assets -- 0.0 (67,160)
------ -------------
NET ASSETS -- 100.0% $516,413,371
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depositary Receipt
See Notes to Financial Statements
---------------------
55
<PAGE> 189
- ---------------------
SUNAMERICA SERIES TRUST
ALLIANCE GROWTH PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 94.6% SHARES VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 6.4%
Apparel & Textiles -- 1.4%
NIKE, Inc. ............................................................. 93,100 $ 5,295,063
Retail -- 5.0%
Dayton Hudson Corp. .................................................... 96,700 3,759,212
Home Depot, Inc. ....................................................... 235,400 12,270,225
Wal-Mart Stores, Inc. .................................................. 118,700 3,026,850
-------------
24,351,350
-------------
CONSUMER STAPLES -- 14.5%
Food, Beverage & Tobacco -- 13.6%
Campbell Soup Co. ...................................................... 102,300 8,452,538
McDonald's Corp. ....................................................... 151,500 7,082,625
PepsiCo, Inc. .......................................................... 353,100 10,548,862
Philip Morris Cos., Inc. ............................................... 215,800 22,254,375
Wrigley, (Wm) Jr. Co. .................................................. 61,400 3,584,225
Household Products -- 0.9%
Colgate-Palmolive Co. .................................................. 35,400 3,278,925
-------------
55,201,550
-------------
FINANCE -- 18.3%
Banks -- 4.8%
Chase Manhattan Corp. .................................................. 41,194 3,892,833
First Chicago Corp. .................................................... 61,600 3,619,000
First Union Corp. ...................................................... 52,800 4,032,600
Norwest Corp. .......................................................... 144,120 6,737,610
Wells Fargo & Co. ...................................................... 1 285
Financial Services -- 12.4%
Federal National Mortgage Association................................... 400,300 16,512,375
First Data Corp. ....................................................... 58,800 2,344,650
Household International, Inc. .......................................... 66,200 6,272,450
MBNA Corp. ............................................................. 297,700 12,019,637
Merrill Lynch & Co., Inc. .............................................. 84,300 6,765,075
Travelers Group, Inc. .................................................. 69,200 3,114,000
Insurance -- 1.1%
Allstate Corp. ......................................................... 63,400 3,819,850
MGIC Investment Corp. .................................................. 6,100 456,738
-------------
69,587,103
-------------
HEALTHCARE -- 13.8%
Drugs -- 7.9%
Amgen, Inc.+............................................................ 113,500 6,909,312
Merck & Co., Inc. ...................................................... 204,900 17,006,700
Pfizer, Inc. ........................................................... 68,500 6,139,313
Health Services -- 2.1%
Columbia/HCA Healthcare Corp. .......................................... 126,250 5,050,000
Pacificare Health Systems, Inc.+........................................ 19,700 1,556,300
Pacificare Health Systems, Inc., Class B+............................... 14,400 1,195,200
</TABLE>
- ---------------------
56
<PAGE> 190
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE (continued)
Medical Products -- 3.8%
Abbott Laboratories..................................................... 100,200 $ 5,586,150
Johnson & Johnson Co. .................................................. 64,800 3,442,500
Medtronic, Inc. ........................................................ 84,300 5,574,337
-------------
52,459,812
-------------
INDUSTRIAL & COMMERCIAL -- 6.4%
Aerospace & Military Technology -- 2.2%
AlliedSignal, Inc. ..................................................... 55,100 4,036,075
Boeing Co. ............................................................. 33,300 3,309,188
United Technologies Corp. .............................................. 6,900 967,725
Electrical Equipment -- 0.9%
Honeywell, Inc. ........................................................ 50,200 3,444,975
Machinery -- 2.2%
Applied Materials, Inc.+................................................ 227,900 8,688,687
Transportation -- 1.1%
Burlington Northern Santa Fe............................................ 45,900 4,125,263
-------------
24,571,913
-------------
INFORMATION & ENTERTAINMENT -- 7.3%
Leisure & Tourism -- 7.3%
Disney (Walt) Co. ...................................................... 201,512 14,861,510
Northwest Airlines Corp.+............................................... 186,200 7,517,825
UAL Corp. .............................................................. 97,700 5,617,750
-------------
27,997,085
-------------
INFORMATION TECHNOLOGY -- 26.3%
Communication Equipment -- 0.7%
Ascend Communications, Inc.+............................................ 38,700 2,752,538
Computers & Business Equipment -- 8.4%
3Com Corp.+............................................................. 47,400 3,560,925
Cascade Communications Co.+............................................. 40,000 2,765,000
COMPAQ Computer Corp.+.................................................. 119,300 9,454,525
Dell Computer Corp.+.................................................... 29,500 2,997,937
Electronic Data Systems Corp. .......................................... 77,600 3,753,900
Hewlett-Packard Co. .................................................... 176,200 9,492,775
Electronics -- 4.7%
Altera Corp.+........................................................... 27,000 2,038,500
Intel Corp. ............................................................ 92,500 11,735,937
Motorola, Inc. ......................................................... 74,000 4,097,750
Software -- 10.6%
Cisco Systems, Inc.+.................................................... 252,200 17,118,075
Microsoft Corp.+........................................................ 73,700 11,561,687
Netscape Communications Corp.+.......................................... 62,700 3,503,363
Oracle Systems Corp.+................................................... 169,700 8,315,300
Telecommunications -- 1.9%
Lucent Technologies, Inc. .............................................. 87,200 4,469,000
MFS Communications, Inc.+............................................... 56,000 2,702,000
-------------
100,319,212
-------------
</TABLE>
---------------------
57
<PAGE> 191
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS -- 0.7%
Chemicals -- 0.7%
Monsanto Co. ........................................................... 66,400 $ 2,639,400
-------------
REAL ESTATE -- 0.9%
Real Estate Companies -- 0.9%
Green Tree Financial Corp. ............................................. 86,000 3,601,250
-------------
TOTAL COMMON STOCK (cost $309,095,983).................................. 360,728,675
-------------
WARRANTS -- 4.8%+
-----------------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 4.8%
Electronics -- 4.8%
Intel Corp. (cost $3,321,125)........................................... 211,000 18,515,250
-------------
TOTAL INVESTMENT SECURITIES (cost $312,417,108)......................... 379,243,925
-------------
PRINCIPAL
SHORT-TERM SECURITIES -- 0.3% AMOUNT
-----------------------------------------------------------------------------------------------------
TIME DEPOSIT -- 0.3%
Cayman Island Time Deposit with State Street Bank & Trust Co.
2.75% due 12/02/96@................................................... $ 971,000 971,000
-------------
U.S. GOVERNMENT -- 0.0%
United States Treasury Bills 5.14% due 12/19/96@........................ 160,000 159,589
-------------
TOTAL SHORT-TERM SECURITIES (cost $1,130,589)........................... 1,130,589
-------------
TOTAL INVESTMENTS --
(cost $313,547,697) 99.7% 380,374,514
Other assets less liabilities -- 0.3 992,159
------ -------------
NET ASSETS -- 100.0% $381,366,673
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
@ The security or a portion thereof represents collateral for the
following open futures contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
----------------------------------------------------------------------------------------------------------
NUMBER OF EXPIRATION VALUE AS OF UNREALIZED
CONTRACTS DESCRIPTION DATE NOVEMBER 30, 1996 APPRECIATION
----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
12 Long Standard & Poor's 500 Index............. December 1996 $ 4,549,500 $397,500
===========
</TABLE>
See Notes to Financial Statements
- ---------------------
58
<PAGE> 192
- ---------------------
SUNAMERICA SERIES TRUST
GROWTH/PHOENIX INVESTMENT
COUNSEL PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 87.7% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 5.9%
Apparel & Textiles -- 0.2%
Footstar, Inc.+....................................................... 12,955 $ 265,578
Automotive -- 0.7%
General Motors Corp. ................................................. 25,000 1,362,500
Retail -- 5.0%
American Stores Co. .................................................. 75,000 2,990,625
CVS Corp. ............................................................ 45,000 1,850,625
Home Depot, Inc. ..................................................... 50,000 2,606,250
Price/Costco, Inc.+................................................... 80,000 1,860,000
------------
10,935,578
------------
CONSUMER STAPLES -- 7.4%
Food, Beverage & Tobacco -- 3.2%
PepsiCo, Inc. ........................................................ 43,900 1,311,512
Ralston Purina Co. ................................................... 25,000 1,912,500
Seagram Co., Ltd. .................................................... 70,000 2,861,250
Household Products -- 4.2%
Colgate-Palmolive Co. ................................................ 15,000 1,389,375
Kimberly-Clark Corp. ................................................. 30,000 2,932,500
Unilever NV........................................................... 20,000 3,462,500
------------
13,869,637
------------
ENERGY -- 13.1%
Energy Services -- 8.5%
BJ Services Co.+...................................................... 60,000 2,865,000
Burlington Resources, Inc. ........................................... 30,000 1,590,000
Diamond Offshore Drilling, Inc.+...................................... 45,000 2,868,750
Halliburton Co. ...................................................... 25,000 1,506,250
Nabors Industries, Inc. .............................................. 225,000 4,359,375
Schlumberger Ltd. .................................................... 25,000 2,600,000
Energy Sources -- 4.6%
Burlington Northern Santa Fe.......................................... 24,500 2,201,937
Elf Aquitaine ADR..................................................... 50,000 2,193,750
ENSCO International, Inc.+............................................ 30,000 1,316,250
Louisiana Land & Exploration Co. ..................................... 50,000 2,987,500
------------
24,488,812
------------
FINANCE -- 14.3%
Banks -- 1.5%
Citicorp.............................................................. 25,000 2,731,250
Financial Services -- 6.5%
American Express Co. ................................................. 40,000 2,090,000
Bankers Trust New York Corp. ......................................... 22,000 1,914,000
Equifax, Inc. ........................................................ 105,000 3,438,750
Federal National Mortgage Association................................. 50,000 2,062,500
Travelers Group, Inc. ................................................ 60,000 2,700,000
</TABLE>
---------------------
59
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(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance -- 6.3%
ACE Ltd. ............................................................. 35,000 $ 2,025,625
Allstate Corp. ....................................................... 30,000 1,807,500
Everest Reinsurance Holdings, Inc. ................................... 70,000 1,968,750
General Reinsurance Group............................................. 12,000 2,025,000
Marsh & McLennan Cos. ................................................ 15,000 1,700,625
TIG Holdings, Inc. ................................................... 70,000 2,135,000
------------
26,599,000
------------
HEALTHCARE -- 13.3%
Drugs -- 6.3%
American Home Products Corp. ......................................... 30,000 1,927,500
Amgen, Inc.+.......................................................... 30,000 1,826,250
Bristol-Myers Squibb Co. ............................................. 25,000 2,843,750
Lilly (Eli) & Co. .................................................... 40,000 3,060,000
Warner-Lambert Co. ................................................... 30,000 2,145,000
Health Services -- 1.0%
Columbia/HCA Healthcare Corp. ........................................ 45,000 1,800,000
Medical Products -- 6.0%
Allegiance Corp. ..................................................... 12,000 271,500
Baxter International, Inc. ........................................... 60,000 2,550,000
Johnson & Johnson Co. ................................................ 65,000 3,453,125
Mallinckrodt, Inc. ................................................... 40,000 1,760,000
Medtronic, Inc. ...................................................... 25,000 1,653,125
Pharmacia & Upjohn, Inc. ............................................. 40,000 1,545,000
------------
24,835,250
------------
INDUSTRIAL & COMMERCIAL -- 13.6%
Aerospace & Military Technology -- 5.5%
Boeing Co. ........................................................... 20,400 2,027,250
Litton Industries, Inc.+.............................................. 45,000 2,103,750
Lockheed Martin Corp. ................................................ 40,000 3,625,000
Raytheon Co. ......................................................... 50,000 2,556,250
Business Services -- 5.5%
Cognizant Corp.+...................................................... 75,000 2,587,500
CUC International, Inc.+.............................................. 75,000 1,978,125
Pittston Brink's Group................................................ 15,000 382,500
Primark Corp.+........................................................ 50,000 1,312,500
WMX Technologies, Inc. ............................................... 110,000 3,960,000
Machinery -- 1.0%
Deere & Co. .......................................................... 40,000 1,785,000
Transportation -- 1.6%
Tidewater, Inc. ...................................................... 68,000 2,975,000
------------
25,292,875
------------
INFORMATION & ENTERTAINMENT -- 2.8%
Broadcasting & Media -- 1.4%
Grupo Televisa SA ADR................................................. 35,000 953,750
Time Warner, Inc. .................................................... 42,000 1,711,500
Leisure & Tourism -- 1.4%
Carnival Corp. ....................................................... 80,000 2,530,000
------------
5,195,250
------------
</TABLE>
- ---------------------
60
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(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY -- 10.3%
Computers & Business Equipment -- 0.9%
Xerox Corp. .......................................................... 32,000 $ 1,572,000
Electronics -- 3.0%
ADT Ltd.+............................................................. 90,000 1,845,000
Intel Corp. .......................................................... 15,000 1,903,125
Perkin-Elmer Corp. ................................................... 30,000 1,848,750
Software -- 5.6%
Cisco Systems, Inc.+.................................................. 50,000 3,393,750
Informix Corp.+....................................................... 50,000 1,187,500
Microsoft Corp.+...................................................... 12,000 1,882,500
Oracle Systems Corp.+................................................. 40,000 1,960,000
Sterling Software, Inc.+.............................................. 25,000 828,125
VeriFone, Inc.+....................................................... 37,000 1,248,750
Telecommunications -- 0.8%
Lucent Technologies, Inc. ............................................ 30,000 1,537,500
------------
19,207,000
------------
MATERIALS -- 6.4%
Chemicals -- 4.9%
IMC Global, Inc. ..................................................... 80,000 2,890,000
Monsanto Co. ......................................................... 70,000 2,782,500
Raychem Corp. ........................................................ 40,000 3,410,000
Metals & Minerals -- 1.5%
Potash Corp. of Saskatchewan, Inc. ................................... 36,500 2,751,188
------------
11,833,688
------------
UTILITIES -- 0.6%
Gas & Pipeline Utilities -- 0.6%
Transocean Offshore, Inc. ............................................ 20,000 1,205,000
------------
TOTAL INVESTMENT SECURITIES (cost $136,132,691)....................... 163,462,090
------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 12.3% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 10.6%
Abbott Laboratories, Inc. 5.25% due 12/4/96........................... $2,390,000 2,388,954
Ameritech Capital Funding Corp. 5.25% due 12/23/96.................... 1,500,000 1,495,187
Assets Securitization Cooperative 5.27% due 12/5/96................... 4,190,000 4,187,547
Ciesco L.P. 5.25% due 12/2/96......................................... 795,000 794,884
Ciesco L.P. 5.35% due 12/2/96......................................... 885,000 884,869
Donnelley(R.R.) & Sons Co. 5.27% due 12/9/96.......................... 1,830,000 1,827,857
General Electric Capital Corp. 5.23% due 12/13/96..................... 2,905,000 2,899,936
Kimberly-Clark Corp. 5.23% due 12/11/96............................... 600,000 599,128
Receivables Capital Corp. 5.29% due 12/2/96........................... 1,147,000 1,146,831
Vermont American Corp. 5.25% due 12/20/96............................. 3,590,000 3,580,053
------------
19,805,246
------------
FEDERAL AGENCY OBLIGATIONS -- 1.3%
Federal Home Loan Bank Consolidated Discount Notes 5.85% due
12/2/96............................................................. 445,000 444,928
Federal Home Loan Mortgage Discount Notes 5.70% due 12/2/96........... 205,000 204,967
Federal National Mortgage Association 5.23% due 12/19/96.............. 1,690,000 1,685,585
------------
2,335,480
------------
</TABLE>
---------------------
61
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<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT -- 0.4%
United States Treasury Bills 4.86% due 2/6/97 (cost $708,533)......... $ 715,000 $ 708,107
------------
TOTAL SHORT-TERM SECURITIES (cost $22,849,259)........................ 22,848,833
------------
TOTAL INVESTMENTS --
(cost $158,981,950) 100.0% 186,310,923
Other assets less liabilities -- 0.0 56,655
------ ------------
NET ASSETS -- 100.0% $186,367,578
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depositary Receipt
See Notes to Financial Statements
- ---------------------
62
<PAGE> 196
- ---------------------
SUNAMERICA SERIES TRUST
PROVIDENT GROWTH
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 96.5% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 8.2%
Apparel & Textile -- 2.6%
Gucci Group NV ADR.................................................... 7,200 $ 528,300
NIKE, Inc. ........................................................... 35,800 2,036,125
Tommy Hilfiger Corp.+................................................. 29,200 1,576,800
Housing -- 0.3%
American Standard Cos., Inc.+......................................... 14,600 556,625
Retail -- 5.3%
CVS Corp. ............................................................ 22,700 933,538
Home Depot, Inc. ..................................................... 25,900 1,350,037
Kohl's Corp.+......................................................... 34,600 1,379,675
Price/Costco, Inc.+................................................... 60,300 1,401,975
Safeway, Inc.+........................................................ 45,600 1,852,500
Staples, Inc.+........................................................ 47,000 928,250
Walgreen Co. ......................................................... 17,200 718,100
-------------
13,261,925
-------------
CONSUMER STAPLES -- 2.3%
Household Products -- 2.3%
Estee Lauder Cos., Inc., Class A...................................... 7,400 370,000
Gillette Co. ......................................................... 44,600 3,289,250
-------------
3,659,250
-------------
ENERGY -- 2.5%
Energy Services -- 1.8%
Schlumberger Ltd. .................................................... 16,200 1,684,800
Tosco Corp. .......................................................... 15,700 1,195,163
Energy Sources -- 0.7%
Enron Corp. .......................................................... 24,800 1,134,600
-------------
4,014,563
-------------
FINANCE -- 17.9%
Financial Services -- 15.1%
Associates First Capital Corp. Class A................................ 41,100 1,988,213
Federal Home Loan Mortgage Corp. ..................................... 17,900 2,045,075
Federal National Mortgage Association................................. 164,500 6,785,625
First Data Corp. ..................................................... 153,650 6,126,794
First USA, Inc. ...................................................... 72,000 2,367,000
MBNA Corp. ........................................................... 116,100 4,687,537
Synovus Financial Corp. .............................................. 6,400 209,600
Insurance -- 2.8%
American International Group, Inc. ................................... 23,300 2,679,500
MGIC Investment Corp. ................................................ 23,500 1,759,562
-------------
28,648,906
-------------
</TABLE>
---------------------
63
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 20.3%
Drugs -- 12.0%
Amgen, Inc.+.......................................................... 40,500 $ 2,465,437
Cardinal Health, Inc. ................................................ 26,800 2,241,150
Elan Corp. PLC ADR+................................................... 40,200 1,195,950
Lilly (Eli) & Co. .................................................... 34,200 2,616,300
Merck & Co., Inc. .................................................... 38,800 3,220,400
Pfizer, Inc. ......................................................... 83,000 7,438,875
Health Services -- 4.3%
Columbia/HCA Healthcare Corp. ........................................ 24,900 996,000
HEALTHSOUTH Corp.+.................................................... 61,200 2,302,650
Oxford Health Plans, Inc.+............................................ 62,900 3,648,200
Medical Products -- 4.0%
Boston Scientific Corp.+.............................................. 31,200 1,821,300
Medtronic, Inc. ...................................................... 68,500 4,529,563
-------------
32,475,825
-------------
INDUSTRIAL & COMMERCIAL -- 6.0%
Business Services -- 6.0%
AccuStaff, Inc.+...................................................... 33,100 670,275
CUC International, Inc.+.............................................. 76,350 2,013,731
Fluor Corp. .......................................................... 13,700 931,600
Republic Industries, Inc.+............................................ 65,100 2,172,713
Service Corp. International........................................... 48,800 1,470,100
Tyco International Ltd. .............................................. 42,900 2,348,775
-------------
9,607,194
-------------
INFORMATION & ENTERTAINMENT -- 8.4%
Broadcasting & Media -- 1.7%
British Sky Broadcast Group PLC ADR................................... 51,500 2,690,875
Leisure & Tourism -- 6.7%
Circus Circus Enterprises, Inc.+...................................... 30,000 1,095,000
Disney (Walt) Co. .................................................... 35,834 2,642,757
HFS, Inc.+............................................................ 73,500 4,759,125
Mirage Resorts, Inc.+................................................. 92,900 2,241,213
-------------
13,428,970
-------------
INFORMATION TECHNOLOGY -- 29.2%
Communication Equipment -- 5.4%
ADC Telecommunications, Inc.+......................................... 36,600 1,326,750
Ascend Communications, Inc.+.......................................... 25,800 1,835,025
Ericsson (L.M.) Telephone Co. ADR..................................... 177,100 5,467,963
Computers & Business Equipment -- 4.4%
Automatic Data Processing, Inc. ...................................... 16,900 724,588
Ceridian Corp.+....................................................... 27,100 1,304,187
Computer Sciences Corp.+.............................................. 30,700 2,413,787
Danka Business Systems PLC ADR........................................ 44,600 1,873,200
Electronic Data Systems Corp. ........................................ 16,300 788,513
Electronics -- 1.3%
Analog Devices, Inc.+................................................. 18,725 601,541
Thermo Electron Corp. ................................................ 41,150 1,491,687
Software -- 14.0%
Cisco Systems, Inc.+.................................................. 60,600 4,113,225
Computer Associates International, Inc. .............................. 70,550 4,638,662
</TABLE>
- ---------------------
64
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(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Software (continued)
Microsoft Corp.+...................................................... 53,000 $ 8,314,375
Oracle Systems Corp.+................................................. 76,075 3,727,675
Paychex, Inc. ........................................................ 29,550 1,580,925
Telecommunications -- 4.1%
Andrew Corp.+......................................................... 15,775 912,978
Asia Satellite Telecom Holdings ADR+.................................. 7,600 192,850
Lucent Technologies, Inc. ............................................ 56,400 2,890,500
SunGard Data Systems, Inc.+........................................... 25,400 1,066,800
WorldCom, Inc.+....................................................... 63,400 1,466,125
-------------
46,731,356
-------------
MATERIALS -- 1.4%
Chemicals -- 1.0%
Monsanto Co. ......................................................... 40,000 1,590,000
Forest Products -- 0.4%
Alco Standard Corp. .................................................. 12,400 641,700
-------------
2,231,700
-------------
UTILITIES -- 0.3%
Electric Utilities -- 0.3%
AES Corp. ............................................................ 9,800 478,975
-------------
TOTAL INVESTMENT SECURITIES (cost $109,203,171)....................... 154,538,664
-------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 4.4% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 4.4%
Agreement with State Street Bank & Trust Co., bearing interest of
4.75% dated 11/29/96, to be repurchased 12/02/96 in the amount of
$7,000,770 and collateralized by $7,005,000 U.S. Treasury Bonds
6.50% due 11/15/26 (cost $6,998,000)................................ $6,998,000 6,998,000
-------------
TOTAL INVESTMENTS --
(cost $116,201,171) 100.9% 161,536,664
Liabilities in excess of other assets -- (0.9) (1,463,619)
------ -------------
NET ASSETS -- 100.0% $160,073,045
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depositary Receipt
See Notes to Financial Statements
---------------------
65
<PAGE> 199
- ---------------------
SUNAMERICA SERIES TRUST
GLOBAL EQUITIES PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 95.8% Shares Value
----------------------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRALIA -- 0.9%
Coca-Cola Amatil Ltd. (Consumer Staples)............................. 39,863 $ 450,349
Mayne Nickless Ltd. (Industrial & Commercial)........................ 37,000 240,925
Qantas Airways Ltd. (Industrial & Commercial)........................ 47,680 74,124
Western Mining Corp. Holdings Ltd. ADR (Materials)................... 72,754 461,892
Woolworths Ltd. (Consumer Discretionary)............................. 355,218 884,720
------------
2,112,010
------------
BELGIUM -- 0.3%
Delhaize Le-Lion SA (Consumer Discretionary)......................... 5,700 334,554
Kredietbank NV (Finance)............................................. 1,480 485,705
------------
820,259
------------
BERMUDA -- 0.1%
First Pacific Co., Ltd. (Finance).................................... 242,347 336,941
------------
CANADA -- 0.4%
Renaissance Energy Ltd. (Energy)..................................... 29,400 1,044,238
------------
DENMARK -- 0.8%
BG Bank (Finance).................................................... 5,700 252,439
Den Danske Bank (Finance)............................................ 13,300 1,004,276
ISS International Service Systems A/S (Industrial & Commercial)...... 22,000 608,488
------------
1,865,203
------------
FINLAND -- 0.8%
Kesko (Consumer Discretionary)....................................... 12,070 160,760
Nokia Corp. (Information Technology)................................. 10,900 604,706
Orion-yhtyma OY (Healthcare)......................................... 21,000 704,911
UPM-Kymmene OY (Materials)........................................... 21,900 436,345
------------
1,906,722
------------
FRANCE -- 3.8%
Alcatel Alsthom Compagnie General d'Electricite (Information
Technology)........................................................ 1,930 175,421
Assurance General de France (Finance)................................ 27,210 890,714
Bouygues SA (Consumer Discretionary)................................. 7,905 879,208
Eaux (cie Generale) (Industrial & Commercial)........................ 5,220 643,531
Elf Aquitaine SA (Energy)............................................ 15,070 1,315,791
GTM-Entrepose (Industrial & Commercial).............................. 6,625 329,107
Legris Industries SA (Industrial & Commercial)....................... 13,150 568,915
Pechiney SA (Materials).............................................. 10,058 404,530
Salomon SA (Consumer Discretionary).................................. 5,000 440,292
Sefimeg (Real Estate)................................................ 4,630 342,123
Simco (Real Estate).................................................. 113 9,518
Simco registered (Real Estate)....................................... 3,550 316,889
Societe de Immeubles (Real Estate)................................... 5,195 318,236
Total SA, Series B (Energy).......................................... 18,030 1,441,696
Unibail SA (Finance)................................................. 5,730 546,806
Union Immeubles de France (Real Estate).............................. 3,300 263,997
USINOR SACILOR (Materials)........................................... 33,200 496,684
------------
9,383,458
------------
</TABLE>
- ---------------------
66
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(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
GERMANY -- 2.3%
Bayer AG (Materials)................................................. 36,750 $ 1,478,745
Deutsche Telekom (Information Technology)............................ 14,100 306,641
Lufthansa AG (Industrial & Commercial)............................... 48,000 617,905
Preussag AG (Materials).............................................. 1,300 305,117
Schmalbach-Lubeca AG (Materials)..................................... 3,700 814,284
Sudzucker AG (Consumer Staples)...................................... 1,403 647,637
Veba AG (Utilities).................................................. 23,470 1,372,555
Volkswagen AG (Consumer Discretionary)............................... 550 220,450
------------
5,763,334
------------
HONG KONG -- 1.1%
Asia Satellite Telecom Holdings Ltd. (Information Technology)........ 15,000 38,509
CITIC Pacific Ltd. (Information & Entertainment)..................... 74,000 385,696
Dao Heng Bank Group (Finance)........................................ 87,000 412,946
Guangshen Railway Co., Ltd. ADR (Industrial & Commercial)+........... 11,000 217,250
Hong Kong & China Gas Co., Ltd. (Utilities).......................... 85,680 170,097
Hysan Development Co., Ltd. (Real Estate)............................ 46,000 175,802
New World Development Co., Ltd. (Real Estate)........................ 28,089 189,815
Sun Hung Kai Properties Ltd. (Real Estate)........................... 17,000 211,071
Swire Pacific Ltd., Class A (Industrial & Commercial)................ 35,000 331,576
Television Broadcasting Ltd. (Information & Entertainment)........... 100,000 384,118
Wharf Holdings Ltd. (Real Estate).................................... 48,000 248,319
------------
2,765,199
------------
INDIA -- 0.4%
Bajaj Auto GDR (Consumer Discretionary).............................. 15,400 431,200
Bank of India GDR (Finance)+......................................... 22,000 358,050
Industrial Credit & Investment Corp. of India Ltd. GDR (Finance)..... 24,000 207,000
Industrial Credit & Investment Corp. of India Ltd. GDR (Finance)..... 2,000 17,250
------------
1,013,500
------------
INDONESIA -- 0.6%
Hanjaya Mandala Sampoerna (Consumer Staples)......................... 144,000 733,817
Perusahaan Persero Part Telekom ADR (Utilities)...................... 6,000 197,250
PT Indosat (Information Technology).................................. 188,000 519,104
PT Telekomunikasi Indonesia (Information Technology)................. 59,000 97,495
------------
1,547,666
------------
ITALY -- 1.2%
ENI SpA (Energy)..................................................... 164,900 868,038
Gilardini SpA (Industrial & Commercial).............................. 203,300 235,358
Istituto Nazionale Delle Asazioni SpA (Finance)...................... 471,000 655,569
Saipem SpA (Energy).................................................. 72,000 332,940
SIP (Finance)........................................................ 372,400 876,987
------------
2,968,892
------------
JAPAN -- 19.5%
Amano Corp. (Industrial & Commercial)................................ 48,000 543,635
Asahi Glass Co., Ltd. (Materials).................................... 93,000 947,147
Bank Of Tokyo-Mitsubishi (Finance)................................... 55,300 1,131,247
Canon, Inc. (Information Technology)................................. 52,000 1,095,698
Chiba Bank Ltd. (Finance)............................................ 30,000 227,305
Dai Nippon Printing Co., Ltd. (Industrial & Commercial).............. 35,000 639,157
Daifuku Co., Ltd. (Industrial & Commercial).......................... 38,000 443,723
Daito Trust Construction Co. (Industrial & Commercial)............... 57,000 745,654
Daiwa Securities Co., Ltd. (Finance)................................. 23,000 248,376
DDI Corp. (Healthcare)............................................... 423 3,026,734
East Japan Railway (Industrial & Commercial)......................... 133 609,535
Eisai Co. Ltd. (Healthcare).......................................... 33,250 653,907
</TABLE>
---------------------
67
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(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (continued)
Fuji Photo Film Co., Ltd. (Materials)................................ 11,000 $ 344,776
Furukawa Co., Ltd. (Materials)....................................... 74,000 288,464
Hirose Electric Co., Ltd. (Information Technology)................... 18,000 1,090,430
Honda Motor Co., Ltd. (Consumer Discretionary)....................... 19,000 560,492
House Food Corp. (Consumer Staples).................................. 17,000 289,552
Hoya Corp. (Healthcare).............................................. 32,000 1,199,649
Ishikawajima-Harima Heavy Industries Co. (Industrial & Commercial)... 64,000 297,805
Ito-Yokado Co. (Consumer Discretionary).............................. 10,000 504,829
Japan Securities Finance Co., Ltd. (Finance)......................... 53,000 758,472
Japan Tobacco, Inc. (Consumer Staples)............................... 69 491,299
Kamigumi Co., Ltd. (Industrial & Commercial)......................... 37,000 280,992
Kandenko Co. (Consumer Discretionary)................................ 38,400 367,480
Kao Corp. (Consumer Staples)......................................... 67,000 776,471
Kirin Brewery Co., Ltd. (Consumer Staples)........................... 32,000 323,090
Kokuyo Co., Ltd. (Industrial & Commercial)........................... 19,000 495,435
Kuraray Co., Ltd. (Materials)........................................ 67,000 647,059
Kyocera Corp. (Information Technology)............................... 8,000 514,135
Long-Term Credit Bank of Japan Ltd. (Finance)........................ 1,000 6,321
Mabuchi Motor Co., Ltd. (Consumer Discretionary)..................... 3,000 150,658
Maeda Corp. (Industrial & Commercial)................................ 11,000 134,241
Matsushita Electric Industrial Co., Ltd. (Information Technology).... 72,000 1,245,303
Matsushita Electric Works Ltd. (Industrial & Commercial)............. 48,000 446,708
Mitsubishi Heavy Industrial Ltd. (Industrial & Commercial)........... 70,000 571,554
Mitsubishi Materials Corp. (Materials)............................... 40,000 179,104
Mitsubishi Oil Co., Ltd. (Utilities)................................. 59,000 391,089
Mitsui Marine & Fire Co., Ltd. (Finance)............................. 75,000 482,660
Mitsui Trust & Banking Co. (Finance)................................. 136,000 1,301,492
National House Industrial Co., Ltd. (Industrial & Commercial)........ 36,000 515,189
NGK Insulators Ltd. (Industrial & Commercial)........................ 26,000 264,794
Nikko Securities Co., Ltd. (Finance)................................. 49,000 456,014
Nippon Express Co., Ltd. (Industrial & Commercial)................... 59,000 449,622
Nippon Light Metal Co., Ltd. (Materials)............................. 62,000 284,688
Nippon Steel Corp. (Materials)....................................... 146,000 440,948
Nisshin Steel Co., Ltd. (Materials).................................. 269,000 824,241
NKK Corp. (Materials)................................................ 166,000 408,077
Nomura Securities International, Inc. (Finance)...................... 53,000 893,415
Osaka Gas Co., Ltd. (Utilities)...................................... 120,000 369,798
Rohm Co. (Information Technology).................................... 38,000 2,335,382
Sankyo Co., Ltd. (Healthcare)........................................ 5,000 133,889
Santen Pharmaceutical Co. (Healthcare)............................... 10,200 205,970
Seven-Eleven Japan Co., Ltd. (Consumer Discretionary)................ 33,400 1,991,097
Shimano, Inc. (Industrial & Commercial).............................. 27,000 457,507
Shimizu Construction Co. (Consumer Discretionary).................... 48,000 400,351
Shiseido Co., Ltd. (Healthcare)...................................... 41,000 493,152
Sony Music Entertainment, Inc. (Information & Entertainment)......... 6,000 246,532
Sumitomo Electric Industries Ltd. (Industrial & Commercial).......... 36,000 505,707
Sumitomo Marine & Fire Insurance Co., Ltd. (Finance)................. 61,000 433,802
Sumitomo Realty & Development Co., Ltd. (Real Estate)................ 76,000 527,129
Sumitomo Rubber Industries Ltd. (Industrial & Commercial)............ 38,000 270,904
Taisho Pharmaceutical Co., Ltd. (Healthcare)......................... 24,000 535,206
Takeda Chemical Industries Ltd. (Healthcare)......................... 20,000 391,572
TDK Corp. (Information Technology)................................... 26,000 1,675,505
Toagosei Co., Ltd. (Materials)....................................... 29,000 124,249
Tokai Bank Ltd. (Finance)............................................ 57,000 655,575
Tokyo Electric Power Co., Inc. (Utilities)........................... 25,100 566,348
Tokyo Gas Co., Ltd. (Utilities)...................................... 258,000 761,089
</TABLE>
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (continued)
Tokyo Steel Manufacturing Co., Ltd. (Materials)...................... 66,000 $ 973,485
Toyo Kanetsu K.K. (Energy)........................................... 46,000 185,777
Toyota Motor Corp. (Consumer Discretionary).......................... 81,000 2,211,677
Ube Industries Ltd. (Materials)...................................... 36,000 112,520
Ushio, Inc. (Consumer Staples)....................................... 43,000 468,130
Yakult Honsha Co. (Consumer Staples)................................. 30,000 329,236
Yamanouchi Pharmaceutical Co., Ltd. (Healthcare)..................... 43,000 875,856
Yamatake-Honeywell (Information Technology).......................... 26,000 422,300
Yamazaki Baking Co. (Consumer Staples)............................... 19,000 303,600
------------
47,952,011
------------
KOREA -- 0.5%
Hyundai Motor Co. GDR (Consumer Discretionary)....................... 1,000 10,375
Korea Electric Power Corp. (Utilities)............................... 7,000 223,777
Korea Electric Power Corp. ADR (Utilities)........................... 3,400 59,925
Korea Mobile Telecommunications ADR (Information Technology)......... 58,300 757,900
Pohang Iron & Steel Co., Ltd. ADR (Materials)........................ 11,000 221,375
------------
1,273,352
------------
MALAYSIA -- 0.8%
AMMB Holdings Bhd (Finance).......................................... 54,000 429,521
Malakoff Bhd (Industrial & Commercial)............................... 61,000 277,602
Malayan Banking Bhd (Finance)(1)..................................... 30,000 296,795
Petronas Gas Bhd (Energy)............................................ 70,000 285,318
Resorts World Bhd (Information & Entertainment)...................... 116,000 582,984
------------
1,872,220
------------
NETHERLANDS -- 2.2%
Akzo Nobel NV (Materials)............................................ 9,910 1,315,548
Apothekers Cooperative Opg (Healthcare).............................. 7,150 189,915
CSM NV (Industrial & Commercial)..................................... 3,000 161,805
Fortis NV (Finance).................................................. 41,900 1,397,234
ING Groep NV (Finance)............................................... 39,000 1,366,119
SGS Thomson Microelectronics NV (Information Technology)............. 4,700 310,856
Vendex International NV (Consumer Discretionary)..................... 17,200 747,132
------------
5,488,609
------------
NEW ZEALAND -- 0.3%
Fletcher Challenge Ltd. (Industrial & Commercial).................... 82,319 135,832
Lion Nathan Ltd. (Consumer Staples).................................. 105,000 269,595
Telecommunications Corp. of New Zealand (Utilities).................. 86,000 453,243
------------
858,670
------------
NORWAY -- 0.6%
Bergesen D.Y. AS (Industrial & Commercial)........................... 30,300 694,001
Orkla AS (Industrial & Commercial)................................... 5,600 373,450
Schibsted AS (Information & Entertainment)........................... 11,600 211,468
Unitor AS (Industrial & Commercial).................................. 6,580 83,044
------------
1,361,963
------------
PHILIPPINES -- 0.2%
Manila Electric Co. (Utilities)...................................... 42,575 315,838
Philippine Commerce International Bank (Finance)..................... 4,470 59,519
------------
375,357
------------
SINGAPORE -- 0.7%
Overseas Chinese Banking Corp., Ltd. (Finance)....................... 50,600 613,333
Overseas Union Bank Ltd. (Finance)................................... 58,000 425,954
Singapore Airlines Ltd. (Information & Entertainment)................ 8,000 75,294
</TABLE>
---------------------
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
Singapore Press Holdings Ltd. (Information & Entertainment).......... 33,400 $ 631,087
------------
1,745,668
------------
SPAIN -- 0.8%
Autopistas Concesionaria Espana SA (Industrial & Commercial)......... 26,300 318,751
Banco de Santander SA (Finance)...................................... 6,100 330,570
Repsol SA (Energy)................................................... 15,500 573,742
Tabacalera SA (Consumer Staples)..................................... 13,300 521,568
Viscofan Envoltura (Consumer Staples)................................ 11,800 182,183
------------
1,926,814
------------
SWEDEN -- 1.0%
Astra AB (Healthcare)................................................ 18,600 891,834
Electrolux AB (Consumer Staples)..................................... 5,700 333,991
Incentive AB (Consumer Discretionary)................................ 2,800 185,538
Sparbanken Sverige (Finance)......................................... 15,500 256,195
Stora Kopparbergs (Materials)........................................ 51,700 700,563
------------
2,368,121
------------
SWITZERLAND -- 2.3%
Adia SA (Industrial & Commercial).................................... 1,120 288,700
Baloise Holdings (Finance)........................................... 354 790,288
Ciba-Geigy AG (Materials)............................................ 1,510 1,868,531
Nestle SA (Consumer Staples)......................................... 1,090 1,183,237
Sandoz AG (Healthcare)............................................... 590 686,183
Schindler Holding AG (Industrial & Commercial)....................... 326 342,381
Swissair AG (Industrial & Commercial)................................ 376 285,570
Zurich Versicherun (Finance)......................................... 1,190 337,783
------------
5,782,673
------------
TAIWAN, PROVINCE OF CHINA -- 0.1%
Advanced Semiconductor Materials International NV GDR (Information
Technology)+....................................................... 35,080 298,180
------------
THAILAND -- 0.2%
Bangkok Bank PLC (Finance)........................................... 12,000 137,194
Thai Farmers Bank (Finance).......................................... 42,000 358,489
------------
495,683
------------
UNITED KINGDOM -- 11.6%
Anglian Water PLC (Industrial & Commercial).......................... 79,800 781,498
B.A.T. Industries PLC (Industrial & Commercial)...................... 91,700 732,305
BAA PLC (Industrial & Commercial).................................... 115,000 947,377
Barclays PLC (Finance)............................................... 87,000 1,496,318
Bass PLC (Consumer Staples).......................................... 53,300 702,094
British Aerospace PLC (Industrial & Commercial)...................... 37,500 729,447
British Petroleum Co. PLC (Energy)................................... 116,200 1,343,587
British Sky Broadcasting Group PLC (Information & Entertainment)..... 80,300 700,667
British Telecommunications PLC (Information Technology).............. 147,700 934,920
BTR PLC (Industrial & Commercial).................................... 270,600 1,087,313
Cadbury Schweppes PLC (Consumer Staples)............................. 86,400 742,999
Compass Group (Information & Entertainment).......................... 51,900 529,209
General Electric Co. (Industrial & Commercial)....................... 122,000 764,038
Glaxo Wellcome PLC (Healthcare)...................................... 57,600 947,330
Grand Metropolitan PLC (Information & Entertainment)................. 95,700 747,355
Hanson PLC (Industrial & Commercial)................................. 338,000 451,765
Hepworth PLC (Industrial & Commercial)............................... 74,000 342,132
Holliday Chemical Holdings PLC (Finance)............................. 167,860 352,766
Ladbroke Group PLC (Information & Entertainment)..................... 200,000 689,307
</TABLE>
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (continued)
National Grid Group PLC (Utilities).................................. 286,000 $ 937,626
National Westminster Bank PLC (Finance).............................. 60,700 706,194
Pearson PLC (Information & Entertainment)............................ 47,900 591,905
Rank Group PLC (Industrial & Commercial)............................. 144,700 1,058,247
Reed International PLC (Information & Entertainment)................. 51,856 1,004,775
Refuge Group PLC (Finance)........................................... 73,000 586,037
Reuters Holdings PLC (Industrial & Commercial)....................... 82,000 998,117
Rugby Group PLC (Industrial & Commercial)............................ 273,200 440,942
Sainsbury (J.) PLC (Consumer Discretionary).......................... 147,600 931,806
Sears PLC (Consumer Discretionary)................................... 458,100 716,263
Shell Transport & Trading (Energy)................................... 29,220 485,362
Siebe PLC (Industrial & Commercial).................................. 42,900 684,828
Smithkline Beecham (Healthcare)...................................... 57,700 795,461
Tesco PLC (Consumer Discretionary)................................... 123,000 702,886
TI Group PLC (Industrial & Commercial)............................... 101,300 944,365
Tomkins PLC (Industrial & Commercial)................................ 134,599 562,338
Vodafone Group PLC (Information Technology).......................... 147,900 640,287
Wimpey (George) PLC (Consumer Discretionary)......................... 330,000 696,284
------------
28,506,150
------------
UNITED STATES -- 42.3%
3Com Corp. (Information Technology)+................................. 19,300 1,449,912
Abbott Laboratories (Healthcare)..................................... 39,300 2,190,975
AirTouch Communications, Inc. (Information Technology)+.............. 37,000 948,125
AlliedSignal, Inc. (Industrial & Commercial)......................... 26,200 1,919,150
Altera Corp. (Information Technology)+............................... 13,700 1,034,350
American Express Co. (Finance)....................................... 15,100 788,975
American International Group, Inc. (Finance)......................... 19,400 2,231,000
Amgen, Inc. (Healthcare)+............................................ 32,300 1,966,262
Atmel Corp. (Information Technology)+................................ 21,300 700,238
Boston Scientific Corp. (Healthcare)+................................ 18,000 1,050,750
Bristol-Myers Squibb Co. (Healthcare)................................ 16,600 1,888,250
Campbell Soup Co. (Consumer Staples)................................. 21,000 1,735,125
Carnival Corp. (Information & Entertainment)......................... 30,300 958,238
Centocor, Inc. (Industrial & Commercial)+............................ 14,100 389,513
Chase Manhattan Corp. (Finance)...................................... 19,600 1,852,200
Cisco Systems, Inc. (Information Technology)+........................ 29,000 1,968,375
Colgate-Palmolive Co. (Consumer Staples)............................. 28,600 2,649,075
Columbia/HCA Healthcare Corp. (Healthcare)........................... 42,000 1,680,000
COMPAQ Computer Corp. (Information Technology)+...................... 24,300 1,925,775
Cox Communications, Inc., Class A (Information & Entertainment)+..... 28,200 578,100
Crown, Cork & Seal, Inc. (Materials)................................. 18,900 1,001,700
Dean Witter, Discover & Co. (Finance)................................ 15,000 1,025,625
Dell Computer Corp. (Information Technology)+........................ 14,000 1,422,750
Disney (Walt) Co. (Information & Entertainment)...................... 25,000 1,843,750
Electronic Data Systems Corp. (Information Technology)............... 16,500 798,188
Enron Corp. (Energy)................................................. 7,500 343,125
Exxon Corp. (Energy)................................................. 18,000 1,703,250
Federated Department Stores, Inc. (Consumer Discretionary)+.......... 33,400 1,139,775
First Chicago Corp. (Finance)........................................ 31,142 1,829,592
First Data Corp. (Finance)........................................... 22,000 877,250
First Union Corp. (Finance).......................................... 11,800 901,225
FPL Group, Inc. (Utilities)+......................................... 27,000 1,245,375
General Electric Co. (Industrial & Commercial)....................... 33,700 3,504,800
General Reinsurance Group (Finance).................................. 3,300 556,875
Gillette Co. (Consumer Staples)...................................... 40,300 2,972,125
Hewlett-Packard Co. (Information Technology)......................... 11,900 641,113
</TABLE>
---------------------
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (continued)
Intel Corp. (Information Technology)................................. 34,400 $ 4,364,500
International Business Machines Corp. (Information Technology)....... 8,100 1,290,937
Kohl's Corp. (Consumer Discretionary)+............................... 21,600 861,300
Kroger Co. (Consumer Discretionary)+................................. 30,300 1,397,587
La Quinta Inns, Inc. (Information & Entertainment)................... 30,600 589,050
Lowe's Cos., Inc. (Consumer Discretionary)........................... 11,400 463,125
Lucent Technologies, Inc. (Information Technology)................... 10,176 521,520
MBNA Corp. (Finance)................................................. 25,700 1,037,638
McDonald's Corp. (Consumer Staples).................................. 17,100 799,425
Medtronic, Inc. (Healthcare)......................................... 13,800 912,525
Merck & Co., Inc. (Healthcare)....................................... 57,300 4,755,900
Merrill Lynch & Co., Inc. (Finance).................................. 18,560 1,489,440
Microsoft Corp. (Information Technology)+............................ 12,200 1,913,875
Monsanto Co. (Materials)............................................. 56,600 2,249,850
Morgan Stanley Group, Inc. (Finance)................................. 12,600 757,575
Morton International, Inc. (Materials)............................... 24,800 1,001,300
NationsBank Corp. (Finance).......................................... 5,440 563,720
Netscape Communications Corp. (Information Technology)+.............. 9,900 553,163
Oracle Systems Corp. (Information Technology)+....................... 44,200 2,165,800
Oxford Health Plans, Inc. (Healthcare)+.............................. 10,900 632,200
Pacificare Health Systems, Inc. (Healthcare)......................... 3,500 276,500
Pacificare Health Systems, Inc., Class B (Healthcare)+............... 4,600 381,800
PepsiCo, Inc. (Consumer Staples)..................................... 42,900 1,281,637
Pfizer, Inc. (Healthcare)............................................ 28,000 2,509,500
Philip Morris Cos., Inc. (Consumer Staples).......................... 26,400 2,722,500
PMI Group, Inc. (Finance)............................................ 18,400 1,067,200
Price/Costco, Inc. (Consumer Discretionary).......................... 34,200 795,150
Procter & Gamble Co. (Consumer Staples).............................. 21,300 2,316,375
RJR Nabisco Holdings Corp. (Consumer Staples)........................ 17,400 556,800
Schering-Plough Corp. (Healthcare)................................... 26,200 1,866,750
Sears, Roebuck & Co. (Consumer Discretionary)........................ 25,600 1,273,600
Solectron Corp. (Information Technology)............................. 5,700 333,450
Sunbeam Corp. (Consumer Staples)..................................... 47,700 1,317,712
Tele-Communications Liberty Media Group (Information &
Entertainment)+.................................................... 33,700 842,500
Tele-Communications TCI Group, Series A (Information &
Entertainment)+.................................................... 29,000 391,500
Transocean Offshore, Inc. (Energy)................................... 5,000 301,250
Travelers Group, Inc. (Finance)...................................... 61,067 2,748,000
Tyco International Ltd. (Industrial & Commercial).................... 22,500 1,231,875
United States Industries, Inc. (Consumer Staples).................... 21,200 625,400
Wendy's International, Inc. (Consumer Staples)....................... 44,400 949,050
Whitman Corp. (Industrial & Commercial).............................. 21,000 483,000
------------
104,302,885
------------
TOTAL COMMON STOCK (cost $206,010,049)............................... 236,135,778
------------
PREFERRED STOCK -- 0.9%
----------------------------------------------------------------------------------------------------
BRAZIL -- 0.1%
Dixie Toga SA (Industrial & Commercial).............................. 156,323 127,116
Klabin Fabricadora (Materials)....................................... 127,525 122,217
------------
249,333
------------
GERMANY -- 0.8%
Henkel KGAA (Consumer Staples)+...................................... 20,760 1,033,884
Hornbach Holding AG (Consumer Discretionary)......................... 8,710 574,777
</TABLE>
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<TABLE>
<CAPTION>
PREFERRED STOCK (continued)
----------------------------------------------------------------------------------------------------
<S> <C> <C>
KSB Kl Schanz Beck (Finance)......................................... 3,210 $ 417,398
------------
2,026,059
------------
TOTAL PREFERRED STOCK (cost $2,130,851).............................. 2,275,392
------------
<CAPTION>
PRINCIPAL
AMOUNT
(DENOMINATED
IN LOCAL
BONDS & NOTES -- 0.3% CURRENCY)
----------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN -- 0.3%
Sumitomo Bank Ltd. zero coupon 2001 (Finance)........................ 68,000,000 648,507
------------
<CAPTION>
WARRANTS -- 0.0%+ SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HONG KONG -- 0.0%
Hong Kong & China Gas Co., Ltd. (Utilities).......................... 8,640 $ 5,448
Hysan Development Co., Ltd. (Real Estate)............................ 2,750 2,098
------------
7,546
------------
MALAYSIA -- 0.0%
Development & Commercial Bank Holdings Bhd (Finance)(1).............. 32,000 50,400
TA Enterprise Bhd (Finance).......................................... 50,000 40,364
------------
90,764
------------
THAILAND -- 0.0%
Thai Farmers Bank (Finance).......................................... 2,375 2,720
------------
TOTAL WARRANTS (cost $7,413)......................................... 101,030
------------
TOTAL INVESTMENT SECURITIES (cost $208,770,710)...................... 239,160,707
------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 4.4% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 4.4%
Cayman Island Time Deposit with State Street Bank & Trust Co.
4.88% due 12/02/96 (cost $10,826,000).............................. $10,826,000 10,826,000
------------
TOTAL INVESTMENTS --
(cost $219,596,710) 101.4% 249,986,707
Liabilities in excess of other assets -- (1.4) (3,504,701)
------ ------------
NET ASSETS -- 100.0% $246,482,006
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
(1) Fair valued security; see Note 2
ADR -- American Depositary Receipt
GDR -- Global Depositary Receipt
See Notes to Financial Statements
---------------------
73
<PAGE> 207
- ---------------------
SUNAMERICA SERIES TRUST
INTERNATIONAL DIVERSIFIED
EQUITIES PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 92.2% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRALIA -- 2.3%
Amcor Holdings Ltd. (Materials)...................................... 15,900 $ 97,968
Australian National Industries Ltd. (Materials)...................... 20,100 20,777
Boral Ltd. (Industrial & Commercial)................................. 26,067 68,106
Brambles Industries Ltd. (Industrial & Commercial)................... 6,300 110,247
Broken Hill Proprietary Co. (Materials).............................. 44,700 655,619
Burns Philp & Co., Ltd. (Consumer Staples)........................... 13,900 24,324
Coca-Cola Amatil Ltd. (Consumer Staples)............................. 12,000 135,569
Coles Myer Ltd. (Consumer Discretionary)............................. 32,100 119,924
CRA Ltd. (Materials)................................................. 7,500 125,204
CSR Ltd. (Industrial & Commercial)................................... 25,700 84,091
Fosters Brewing Group Ltd. (Consumer Staples)........................ 57,600 107,361
General Property Trust (Real Estate)................................. 20,300 40,977
Gio Australia Holdings Ltd. (Finance)................................ 11,600 31,724
Goodman Fielder Wattie Ltd. (Consumer Staples)....................... 32,614 41,411
Highlands Gold Ltd. (Materials)...................................... 5,459 3,288
ICI Australia Ltd. (Materials)....................................... 8,200 84,096
Lend Lease Corp., Ltd. (Real Estate)................................. 6,822 126,601
M.I.M. Holdings Ltd. (Materials)..................................... 40,030 57,018
National Australia Bank Ltd. (Finance)............................... 34,149 425,264
Newcrest Mining Ltd. (Materials)..................................... 7,931 29,049
News Corp., Ltd. (Information & Entertainment)....................... 45,814 243,874
Normandy Mining Ltd. (Materials)..................................... 39,222 52,675
North Ltd. (Materials)............................................... 18,450 55,263
Pacific Dunlop Ltd. (Industrial & Commercial)........................ 26,100 59,907
Pioneer International Ltd. (Consumer Staples)........................ 24,700 68,354
Renison Goldfields Consolidated Ltd. (Materials)..................... 5,722 24,777
Santos Ltd. (Energy)................................................. 15,700 63,894
Sons Of Gwalia Ltd. (Materials)...................................... 3,400 18,541
Southcorp Holdings Ltd. (Industrial & Commercial).................... 19,243 63,277
TABCORP. Holdings Ltd. (Information & Entertainment)................. 10,300 47,451
TNT Ltd. (Industrial & Commercial)................................... 8,400 16,546
Western Mining Corp. Holdings Ltd. (Materials)....................... 25,365 161,035
Westfield Trust (Real Estate)(1)..................................... 24,086 48,619
Westfield Trust new (Real Estate)(1)................................. 1,047 2,028
Westpac Banking Corp. (Finance)...................................... 44,900 268,611
-------------
3,583,470
-------------
BRAZIL -- 0.2%
Centrais Electricas Brasileiras SA (Utilities)....................... 695,000 222,023
Companhia Paulista de Forca e Luz (Utilities)........................ 194,000 19,438
Companhia Siderurgica Nacional (Materials)........................... 633,000 17,280
Light Particapacoes (Utilities)...................................... 308,000 57,873
Light-Servicos de Eletricidade SA (Utilities)........................ 138,000 43,618
Telec de Sao Paulo SA (Utilities).................................... 11,142 1,968
-------------
362,200
-------------
FRANCE -- 6.6%
Accor SA (Information & Entertainment)............................... 923 118,383
Alcatel Alsthom (Information Technology)............................. 3,818 347,024
AXA SA (Finance)..................................................... 5,310 319,080
</TABLE>
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FRANCE (continued)
Banque National Paris (Finance)...................................... 5,370 $ 213,821
BIC (Industrial & Commercial)........................................ 1,025 153,442
Bouygues SA (Consumer Discretionary)................................. 956 106,328
Canal Plus SA (Information & Entertainment).......................... 715 163,974
Carrefour SA (Consumer Discretionary)................................ 1,075 663,875
Cie de St. Gobain (Materials)........................................ 2,703 388,597
Cie Financiere de Paribas (Finance).................................. 2,714 186,465
Cie Generale des Eaux (Industrial & Commercial)...................... 2,979 367,257
Compagnie Bancaire SA (Finance)...................................... 730 83,009
Compaignie UAP SA (Finance).......................................... 9,204 245,085
Compaynie de Suez SA (Finance)....................................... 4,752 203,314
Ecco SA (Industrial & Commercial)(2)................................. 25 5,872
Elf Aquitaine SA (Energy)............................................ 8,150 711,592
Eridania Beghin-Say SA (Consumer Staples)............................ 1,050 163,013
Essilor International (Healthcare)................................... 270 77,736
Etablissements Economiques du Casino Guichard-Perrachon
(Consumer Discretionary)........................................... 2,400 108,656
Groupe Danone (Consumer Staples)..................................... 2,227 327,839
Groupe Saint Louis (Materials)....................................... 270 68,485
Havas SA (Industrial & Commercial)................................... 1,852 131,177
L' Oreal (Consumer Staples).......................................... 1,903 696,166
L'Air Liquide SA (Materials)......................................... 2,055 327,695
Lafarge SA (Materials)............................................... 3,204 202,404
Legrand SA (Consumer Staples)........................................ 865 149,857
Lyonnaise des Eaux SA (Multi-industry)............................... 1,770 168,468
Michelin SA (Consumer Discretionary)................................. 4,671 239,550
Moet Hennessy Louis Vuitton (Consumer Staples)....................... 2,675 677,993
Pernod-Ricard (Consumer Staples)..................................... 1,825 100,966
Peugeot SA (Consumer Discretionary).................................. 1,650 202,783
Pinault Printemps Redoute (Consumer Discretionary)................... 585 232,822
Promodes (Consumer Discretionary).................................... 535 148,708
Rhone Poulenc SA (Healthcare)........................................ 9,526 308,549
Sagem SA (Industrial & Commercial)................................... 90 55,132
Sanofi SA (Consumer Staples)......................................... 2,942 263,574
Schneider SA (Industrial & Commercial)............................... 4,172 198,465
Simco (Real Estate).................................................. 46 3,875
Simco registered (Real Estate)....................................... 975 87,033
Societe Eurafrance SA (Finance)...................................... 90 40,660
Societe Generale (Finance)........................................... 2,240 244,849
Sodexho SA (Industrial & Commercial)................................. 185 92,504
Thomson CSF (Industrial & Commercial)................................ 3,800 122,865
Total SA, Series B (Energy).......................................... 6,642 531,101
USINOR SACILOR (Materials)........................................... 7,910 118,337
-------------
10,368,380
-------------
GERMANY -- 10.2%
Adidas AG (Consumer Discretionary)................................... 1,750 151,892
Agiv AG (Multi-industry)............................................. 1,900 24,521
Allianz AG Holding (Finance)......................................... 850 1,550,127
AMB Aachener Und Muenchner (Finance)................................. 150 107,275
BASF AG (Materials).................................................. 23,150 856,254
Bayer AG (Materials)................................................. 28,050 1,128,675
Bayerische Hypotheken Und Bank AG (Finance).......................... 10,150 318,404
Bayerische Vereinsbank AG (Finance).................................. 10,300 431,594
Beiersdorf AG (Consumer Staples)..................................... 3,050 152,292
Bilfinger & Berger (Industrial & Commercial)......................... 1,800 67,525
Brau Und Brunnen AG (Consumer Staples)............................... 300 20,480
</TABLE>
---------------------
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(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
GERMANY (continued)
CKAG Colonia Konzern AG (Finance).................................... 1,250 $ 96,060
Continental AG (Consumer Discretionary).............................. 4,300 74,365
Daimler-Benz AG (Consumer Discretionary)............................. 20,700 1,351,872
Degussa AG (Materials)............................................... 450 186,659
Deutsche Bank AG (Finance)........................................... 19,750 941,210
Deutsche Telekom (Information Technology)............................ 24,272 527,858
Dresdner Bank AG (Finance)........................................... 18,150 538,682
Heidelberg Zement (Materials)........................................ 1,650 120,256
Hochtief AG (Industrial & Commercial)................................ 3,200 128,990
Karstadt AG (Consumer Discretionary)................................. 350 121,627
Klockner Humboldt Deutz AG (Industrial & Commercial)................. 2,200 10,084
Linde AG (Industrial & Commercial)................................... 400 242,897
Lufthansa AG (Information & Entertainment)........................... 15,000 193,095
Manitoba AG (Industrial & Commercial)................................ 500 117,840
Mannesmann AG (Industrial & Commercial).............................. 1,250 521,341
Merck KGAA (Healthcare).............................................. 6,696 247,492
Metro AG (Consumer Discretionary).................................... 2,360 197,932
Metro AG (Consumer Discretionary).................................... 1,200 100,644
Munchener Ruckversicherungs (Finance)................................ 304 730,304
Preussag AG (Materials).............................................. 650 152,558
RWE AG (Utilities)................................................... 13,650 603,472
SAP AG (Materials)................................................... 2,441 334,068
Schering AG (Consumer Staples)....................................... 2,850 234,026
Siemens AG (Industrial & Commercial)................................. 22,900 1,103,238
Strabag AG (Consumer Staples)........................................ 150 11,708
Thyssen AG (Materials)............................................... 1,400 251,037
Veba AG (Utilities).................................................. 19,500 1,140,384
Viag AG (Materials).................................................. 1,100 416,585
Viag AG (Materials).................................................. 171 63,704
Volkswagen AG (Consumer Discretionary)............................... 1,150 460,942
-------------
16,029,969
-------------
HONG KONG -- 6.9%
Applied International Holdings Ltd. (Information & Entertainment).... 32,000 1,862
Bank of East Asia Ltd. (Finance)..................................... 42,283 181,010
Cathay Pacific Airways Ltd. (Industrial & Commercial)................ 157,000 258,892
Cheung Kong Holdings Ltd. (Real Estate).............................. 118,000 1,037,765
China Light & Power Co., Ltd. (Utilities)............................ 106,000 455,147
Chinese Estates Ltd. (Real Estate)................................... 88,722 102,698
Dickson Concept Industries Ltd. (Consumer Discretionary)............. 16,800 61,707
Evergo China Holdings Ltd. (Real Estate)............................. 13,818 2,609
Giordano International Ltd. (Consumer Discretionary)................. 34,000 29,902
Hang Lung Development Co. (Real Estate).............................. 67,000 149,476
Hang Seng Bank Ltd. (Finance)........................................ 102,800 1,239,796
Hong Kong & China Gas Co., Ltd. (Utilities).......................... 104,320 207,102
Hong Kong Aircraft Engineering Co., Ltd. (Industrial & Commercial)... 10,000 28,906
Hong Kong Telecommunications Ltd. (Information Technology)........... 591,489 1,025,084
Hongkong & Shanghai Hotels Ltd. (Information & Entertainment)........ 68,000 135,437
Hopewell Holdings Ltd. (Real Estate)................................. 228,000 150,388
Hutchison Whampoa Ltd. (Multi-industry).............................. 189,000 1,460,521
Hysan Development Co., Ltd. (Real Estate)............................ 56,000 214,020
Johnson Electric Holdings Ltd. (Industrial & Commercial)............. 22,000 55,626
Melco International Development Ltd. (Consumer Staples).............. 2,500 824
Miramar Hotel & Investment Co., Ltd. (Information & Entertainment)... 31,000 60,741
New World Development Co., Ltd. (Real Estate)........................ 81,712 552,180
Oriental Press Group (Information & Entertainment)................... 76,000 42,757
Peregrine Investment Holdings Ltd. (Finance)......................... 21,000 38,839
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HONG KONG (continued)
Shangri-La Asia Ltd. (Information & Entertainment)................... 58,000 $ 91,516
Shun Tak Holdings Ltd. (Industrial & Commercial)..................... 88,000 61,459
South China Morning Post Ltd. (Information & Entertainment).......... 100,000 91,180
Stelux Holdings International Ltd. (Consumer Discretionary).......... 56,000 13,326
Sun Hung Kai Properties Ltd. (Real Estate)........................... 123,000 1,527,160
Swire Pacific Ltd., Class A (Multi-industry)......................... 84,000 795,784
Television Broadcasting Ltd. (Information & Entertainment)........... 23,000 88,347
Wharf Holdings Ltd. (Real Estate).................................... 116,000 600,103
Wing Lung Bank Ltd. (Finance)........................................ 8,168 54,140
Winsor Industrial Corp., Ltd. (Consumer Discretionary)............... 18,500 4,379
Winsor Properties Holdings Ltd. (Real Estate)........................ 9,250 13,937
-------------
10,834,620
-------------
INDONESIA -- 0.0%
PT Lippo Bank (Finance).............................................. 2,000 3,241
PT Polysindo Eka Perkasa (Consumer Discretionary).................... 14,000 7,463
-------------
10,704
-------------
ITALY -- 3.8%
Acciaierie & Ferriere Lombarde (Materials)........................... 7,000 25,004
Assicurazione Generali SpA (Finance)................................. 31,010 623,903
Banca Commerciale Italiana SpA (Finance)............................. 45,200 82,889
Banco Ambrosiano Veneto SpA (Finance)................................ 17,900 39,792
Benetton Group SpA (Consumer Discretionary).......................... 7,825 99,571
Burgo (Cartiere) SpA (Materials)..................................... 5,700 27,260
Cogefar-Impresit SpA (Industrial & Commercial)....................... 10,000 7,988
Credito Italiano SpA (Finance)....................................... 88,500 96,910
Edison SpA (Utilities)............................................... 24,000 153,092
ENI SpA (Energy)..................................................... 283,000 1,489,719
Fiat SpA (Consumer Discretionary).................................... 113,200 330,800
Fiat SpA nonconvertible (Consumer Discretionary)..................... 27,700 45,224
Gilardini SpA (Industrial & Commercial).............................. 15,000 17,365
Istituto Bancario San Paolotorno (Finance)........................... 30,800 193,014
Istituto Mobiliare Italiano (Finance)................................ 22,200 186,495
Istituto Nazionale Delle Asazioni SpA (Finance)...................... 139,700 194,444
Italcementi Fabbriche SpA (Materials)................................ 9,550 55,784
Italcementi Fabbriche SpA nonconvertible (Materials)................. 5,150 12,808
Italgas-Societa Itailiana per il Gas SpA (Utilities)................. 22,900 95,168
La Rinascente Per L'Eserciz Grandi Magazzini SpA
(Consumer Discretionary)........................................... 9,000 52,245
Mediaset SpA (Information & Entertainment)........................... 43,000 205,930
Mediobanca SpA (Finance)............................................. 16,200 93,292
Montedison SpA (Multi-industry)...................................... 149,650 106,022
Montedison SpA nonconvertible (Multi-industry)....................... 37,100 22,515
Olivetti Group (Information Technology).............................. 125,500 44,125
Parmalat Finanziar (Finance)......................................... 52,920 82,909
Pirelli SpA (Consumer Discretionary)................................. 64,000 116,943
Riunione Adriatica de Sicur (Finance)................................ 11,725 116,016
Saffa SpA (Materials)................................................ 1,300 2,277
Sasib SpA (Industrial & Commercial).................................. 5,400 17,098
Sirti SpA (Consumer Discretionary)................................... 9,600 58,071
SNIA BPD SpA (Multi-industry)........................................ 23,000 22,606
Societa Assicuratrice Industriale SpA (Finance)...................... 4,950 43,118
Telecome Italia Mobile SpA (Information Technology).................. 237,900 559,460
Telecome Italia SpA (Information Technology)......................... 232,500 547,528
Telecome Italia SpA nonconvertible (Information Technology).......... 56,000 102,879
-------------
5,970,264
-------------
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JAPAN -- 32.9%
Advantest Corp. (Information Technology)............................. 3,200 $ 136,541
Ajinomoto Co., Inc. (Consumer Staples)............................... 52,000 588,938
Aoki Corp. (Industrial & Commercial)................................. 26,000 67,111
Aoyama Trading Co., Ltd. (Consumer Discretionary).................... 2,600 73,960
Asahi Breweries Ltd. (Consumer Staples).............................. 26,000 278,490
Asahi Chemical Industry Co., Inc. (Materials)........................ 78,000 512,239
Asahi Glass Co., Ltd. (Materials).................................... 74,000 753,644
Bridgestone Corp. (Industrial & Commercial).......................... 26,000 479,368
Canon, Inc. (Information Technology)................................. 39,000 821,773
Casio Computer Co. (Information Technology).......................... 16,000 129,798
Chiyoda Corp. (Consumer Staples)..................................... 10,000 85,162
Chugai Pharmaceutical Co., Ltd. (Healthcare)......................... 26,000 227,357
Dai Nippon Printing Co., Ltd. (Industrial & Commercial).............. 52,000 949,605
Daiei, Inc. (Consumer Discretionary)................................. 36,000 297,735
Daikin Industries Ltd. (Consumer Staples)............................ 26,000 241,967
Daiwa House Industry Co., Ltd. (Consumer Discretionary).............. 26,000 360,667
Daiwa Securities Co., Ltd. (Finance)................................. 52,000 561,545
Ebara Corp. (Industrial & Commercial)................................ 18,000 252,853
Fanuc Ltd. (Information Technology).................................. 11,100 361,554
Fuji Photo Film Co., Ltd. (Materials)................................ 20,000 626,866
Fujitsu Ltd. (Information Technology)................................ 84,000 803,863
Furukawa Electric Co., Ltd. (Industrial & Commercial)................ 43,000 225,382
Hankyu Corp. (Industrial & Commercial)............................... 52,000 262,968
Hazama Corp. (Consumer Staples)...................................... 26,000 86,286
Hitachi Ltd. (Information Technology)................................ 130,000 1,209,833
Honda Motor Co., Ltd. (Consumer Discretionary)....................... 41,000 1,209,482
Industrial Bank of Japan Ltd. (Finance).............................. 240 4,741
Ito-Yokado Co. (Consumer Discretionary).............................. 17,000 858,209
Japan Airlines Co., Ltd. (Information & Entertainment)............... 105,000 613,038
Japan Energy Corp. (Energy).......................................... 66,000 214,399
Jusco Co., Ltd. (Consumer Discretionary)............................. 21,000 682,177
Kajima Corp. (Industrial & Commercial)............................... 52,000 415,452
Kansai Electric Power Co., Inc. (Utilities).......................... 27,800 580,895
KAO Corp. (Consumer Staples)......................................... 48,000 556,277
Kawasaki Steel Corp. (Materials)..................................... 134,000 420,000
Kinki Nippon Railway Co., Ltd. (Industrial & Commercial)............. 78,900 516,764
Kirin Brewery Co., Ltd. (Consumer Staples)........................... 52,000 525,022
Komatsu Ltd. (Industrial & Commercial)............................... 52,000 437,823
Kubota Ltd. (Industrial & Commercial)................................ 78,000 443,073
Kumagai Gumi Co., Ltd. (Consumer Discretionary)...................... 52,000 147,006
Kyocera Corp. (Information Technology)............................... 8,000 514,135
Kyowa Hakko Kogyo Co., Ltd. (Materials).............................. 26,000 219,140
Marubeni Corp. (Consumer Discretionary).............................. 78,000 352,678
Marui Co., Ltd. (Consumer Discretionary)............................. 16,000 303,424
Matsushita Electric Industrial Co., Ltd. (Information Technology).... 78,000 1,349,078
Mitsubishi Chemical Corp. (Materials)................................ 78,000 295,154
Mitsubishi Corp. (Consumer Discretionary)............................ 73,000 846,005
Mitsubishi Electric Corp. (Information Technology)................... 92,000 529,061
Mitsubishi Estate Co., Ltd. (Real Estate)............................ 56,000 707,989
Mitsubishi Heavy Industrial Ltd. (Industrial & Commercial)........... 143,000 1,167,603
Mitsubishi Materials Corp. (Materials)............................... 53,000 237,313
Mitsui & Co. (Materials)............................................. 78,000 662,897
Mitsui Engineering & Shipbuilding Co., Ltd. (Industrial &
Commercial)........................................................ 52,000 128,288
Mitsui Fudosan Co., Ltd. (Real Estate)............................... 42,000 497,805
Mitsukoshi Ltd. (Consumer Discretionary)............................. 29,000 253,336
Murata Manufacturing Co. (Industrial & Commercial)................... 10,000 341,528
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JAPAN (continued)
NEC Corp. (Information Technology)................................... 62,000 $ 751,185
New Oji Paper Co., Ltd. (Information & Entertainment)................ 49,000 350,615
NGK Insulators Ltd. (Industrial & Commercial)........................ 26,000 264,794
Nippon Express Co., Ltd. (Industrial & Commercial)................... 51,000 388,657
Nippon Fire & Marine Insurance Co., Ltd. (Finance)................... 26,000 140,843
Nippon Light Metal Co., Ltd. (Materials)............................. 25,000 114,794
Nippon Meat Packers, Inc. (Consumer Staples)......................... 26,000 340,123
Nippon Oil Co., Ltd. (Energy)........................................ 78,000 440,334
Nippon Steel Corp. (Materials)....................................... 290,000 875,856
Nippon Yusen Kabushiki Kaish (Industrial & Commercial)............... 78,000 373,222
Nippondenso Co., Ltd. (Industrial & Commercial)...................... 26,000 604,917
Nissan Motor Co., Ltd. (Consumer Discretionary)...................... 99,000 703,169
NKK Corp. (Materials)................................................ 153,000 376,119
Nomura Securities International, Inc. (Finance)...................... 78,000 1,314,838
Odakyu Electric Railway Co., Ltd. (Industrial & Commercial).......... 52,600 324,190
Oji Paper Co. (Materials)............................................ 3,000 21,466
Osaka Gas Co., Ltd. (Utilities)...................................... 116,000 357,471
Penta Ocean Construction Co., Ltd. (Industrial & Commercial)......... 26,000 132,853
Pioneer Electronic NV (Information Technology)....................... 8,000 172,081
Rohm Co. (Information Technology).................................... 2,000 122,915
Sankyo Co., Ltd. (Healthcare)........................................ 26,000 696,225
Sanyo Electric Co., Ltd. (Information Technology).................... 78,000 365,004
Secom Co. (Information Technology)................................... 6,000 361,896
Sega Enterprises Ltd. (Consumer Discretionary)....................... 5,100 199,701
Sekisui House Ltd. (Consumer Discretionary).......................... 26,000 278,490
Sharp Corp. (Information Technology)................................. 52,000 812,643
Shimano, Inc. (Industrial & Commercial).............................. 7,000 118,613
Shimizu Corp. (Consumer Discretionary)............................... 37,000 308,604
Shin Etsu Chemical Co., Ltd. (Materials)............................. 11,200 204,530
Shiseido Co., Ltd. (Healthcare)...................................... 11,000 132,309
Showa Denko KK (Materials)........................................... 52,000 130,114
Sony Corp. (Information Technology).................................. 12,400 793,644
Sumitomo Chemical Co., Ltd. (Materials).............................. 105,000 457,243
Sumitomo Corp. (Consumer Discretionary).............................. 52,000 440,562
Sumitomo Electric Industries Ltd. (Industrial & Commercial).......... 35,000 491,659
Sumitomo Forestry Co., Ltd. (Materials).............................. 11,000 149,693
Sumitomo Metal Industries Ltd. (Materials)........................... 183,000 486,822
Sumitomo Metal Mining Co., Ltd. (Materials).......................... 25,000 183,275
Sumitomo Osaka Cement Co., Ltd. (Materials).......................... 26,000 98,156
Taisei Corp. (Consumer Discretionary)................................ 52,000 288,990
Takeda Chemical Industries Ltd. (Healthcare)......................... 40,000 783,143
Teijin Ltd. (Consumer Discretionary)................................. 52,000 247,902
Tobu Railway Co., Ltd. (Industrial & Commercial)..................... 52,000 288,990
Tohoku Electric Power Co., Inc. (Utilities).......................... 18,700 382,537
Tokio Marine & Fire Insurance Co., Ltd. (Finance).................... 78,000 862,862
Tokyo Dome Corp. (Industrial & Commercial)........................... 12,000 249,693
Tokyo Electric Power Co., Inc. (Utilities)........................... 48,500 1,094,337
Tokyo Electron Ltd. (Information Technology)......................... 6,000 171,203
Tokyo Gas Co. Ltd. (Utilities)....................................... 76,000 224,197
Tokyu Corp. (Industrial & Commercial)................................ 52,000 346,971
Toppan Printing Co., Ltd. (Information & Entertainment).............. 36,000 474,100
Toray Industries, Inc. (Materials)................................... 78,000 502,651
Toto Ltd. (Materials)................................................ 26,000 340,123
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JAPAN (continued)
Toyobo Co., Ltd. (Consumer Discretionary)............................ 52,000 $ 163,898
Toyota Motor Corp. (Consumer Discretionary).......................... 121,000 3,303,863
Ube Industries Ltd. (Materials)...................................... 52,000 162,529
Yamaichi Securities Co., Ltd. (Finance).............................. 52,000 274,381
-------------
51,467,292
-------------
KOREA -- 0.7%
Cho Hung Bank (Finance).............................................. 3,880 30,518
Commerce Bank Korea (Finance)........................................ 3,480 24,013
Daewoo Corp. (Industrial & Commercial)............................... 2,690 22,326
Daewoo Heavy Industries (Industrial & Commercial).................... 8,430 58,068
Daewoo Securities Co., Ltd. (Finance)................................ 1,170 19,054
Dong Construction (Industrial & Commercial).......................... 860 21,994
Hanil Bank (Finance)................................................. 3,960 26,179
Hyundai Motor Co. (Consumer Discretionary)........................... 950 31,818
Hyundai, Engineering & Construction Co. (Industrial & Commercial).... 1,170 32,880
Korea Electric Power Corp. (Utilities)............................... 11,920 381,060
Korea First Bank (Finance)........................................... 3,580 20,730
Korea Mobile Telecommunications Corp. (Information Technology)....... 90 89,296
LG Chemicals (Materials)............................................. 1,840 20,643
Pohang Iron & Steel Co., Ltd. (Materials)............................ 2,230 146,250
Samsung Co. (Information Technology)................................. 1,400 18,747
Samsung Disposal Devices (Information Technology).................... 590 37,606
Samsung Electronic (Information Technology).......................... 1,660 125,824
Tongyang Cement (Materials).......................................... 230 4,772
Yukong Ltd. (Energy)................................................. 1,756 47,338
-------------
1,159,116
-------------
MALAYSIA -- 0.0%
Malaysian Oxygen Bhd (Materials)..................................... 2,000 10,210
Metroplex Bhd (Real Estate).......................................... 20,000 25,643
Public Bank Bhd (Finance)............................................ 2,333 4,985
-------------
40,838
-------------
NETHERLANDS -- 2.4%
ABN AMRO Holdings NV (Finance)....................................... 4,810 311,591
Akzo Nobel NV (Materials)............................................ 1,175 155,981
Elsevier NV (Consumer Discretionary)................................. 11,600 197,785
Getronics NV (Information Technology)................................ 1,800 48,228
Heineken NV (Consumer Staples)....................................... 600 107,696
ING Groep NV (Finance)............................................... 10,791 377,995
KLM Royal Dutch Air Lines NV (Information & Entertainment)........... 1,294 33,395
Koninlijke Ahold NV (Consumer Discretionary)......................... 1,575 35,897
Koninlijke KNP BT (Materials)........................................ 1,925 120,459
Koninlijke PTT Nederland NV (Information Technology)................. 7,588 284,280
Nedlloyd Groep NV (Industrial & Commercial).......................... 350 8,891
Philips Electronics NV (Information Technology)...................... 5,050 204,132
Royal Dutch Petroleum Co. (Energy)................................... 7,900 1,332,320
Stork NV (Industrial & Commercial)................................... 425 14,123
Unilever NV CVA (Consumer Staples)................................... 2,400 415,334
Wolters Kluwer NV (Information & Entertainment)...................... 1,050 137,317
-------------
3,785,424
-------------
PORTUGAL -- 0.1%
Banco Portugues do Atlantico SA (Finance)............................ 8,700 137,307
-------------
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SINGAPORE -- 4.7%
Amcol Holdings Ltd. (Consumer Staples)(2)............................ 17,000 $ 31,758
City Developments Ltd. (Real Estate)................................. 62,000 548,164
Cycle & Carriage Ltd. (Consumer Discretionary)....................... 15,000 170,053
DBS Land Ltd. (Real Estate).......................................... 75,000 267,380
Development Bank of Singapore (Finance).............................. 52,000 671,087
First Capital Corp., Ltd. (Real Estate).............................. 19,000 54,189
Fraser & Neave Ltd. (Consumer Staples)............................... 24,800 258,168
Hai Sun Hup Group Ltd. (Finance)..................................... 31,000 22,324
Hotel Properties Ltd. (Real Estate).................................. 36,000 59,551
Inchcape Bhd (Multi-industry)........................................ 15,000 50,053
Jurong Shipyard Ltd. (Industrial & Commercial)....................... 11,000 53,725
Keppel Corp. Ltd. (Industrial & Commercial).......................... 42,000 326,417
NatSteel Ltd. (Materials)............................................ 32,000 66,624
Neptune Orient Lines Ltd. (Industrial & Commercial).................. 64,000 55,216
Overseas Chinese Banking Corp., Ltd. (Finance)....................... 76,779 930,655
Overseas Union Enterprise Ltd. (Information & Entertainment)......... 10,000 49,198
Parkway Holdings Ltd. (Real Estate).................................. 25,000 94,474
Robinson & Co., Ltd. (Consumer Discretionary)........................ 7,000 30,196
Shangri-La Hotel Ltd. (Information & Entertainment).................. 14,000 49,911
Singapore Airlines Ltd. (Information & Entertainment)................ 99,000 931,765
Singapore Press Holdings Ltd. (Information & Entertainment).......... 26,800 506,381
Singapore Tech Industrial Corp. (Industrial & Commercial)............ 58,000 140,606
Singapore Telecommunications Ltd. (Information Technology)........... 481,000 1,118,046
Straits Trading Co., Ltd. (Materials)................................ 31,000 76,036
United Industrial Corp., Ltd. (Multi-industry)....................... 114,000 97,540
United Overseas Bank Ltd. (Finance).................................. 70,000 743,672
-------------
7,403,189
-------------
SPAIN -- 3.8%
Acerinox SA (Materials).............................................. 587 74,768
Autopistas Concesionaria Espana SA (Industrial & Commercial)......... 10,920 132,348
Banco Bilbao Vizcaya SA (Finance).................................... 11,550 584,009
Banco Central Hispanoamericano SA (Finance).......................... 8,400 209,125
Banco de Santander SA (Finance)...................................... 8,150 441,663
Corporacion Bancaria de Espana SA (Finance).......................... 6,450 251,447
Corporacion Financiera Alba (Multi-industry)......................... 825 77,634
Corporacion Mapfre SA (Finance)...................................... 68 3,501
Corporacion Mapfre SA registered (Finance)........................... 1,400 74,031
Dragados & Construcciones SA (Consumer Discretionary)................ 2,950 40,991
Ebro Agricolas, Compania de Alimentacion SA (Industrial &
Commercial)........................................................ 2,450 34,044
Empresa Nacional Celulos SA (Materials).............................. 1,075 13,319
Empresa Nacional de Electricidad SA (Utilities)...................... 13,100 884,862
Ercros SA (Materials)................................................ 8,700 5,239
Fomento Construcciones Y Contratas SA (Consumer Discretionary)....... 775 65,511
Gas Natural SDG SA (Utilities)....................................... 1,900 394,110
General de Aguas de Barcelona SA (Utilities)......................... 2,234 87,953
Iberdrola SA (Utilities)............................................. 47,600 549,344
Inmobiliaria Metropolitana Vasco Central SA (Real Estate)............ 1,150 41,370
Mapfre Vida SA (Finance)............................................. 13 871
Portland Valderrivas SA (Materials).................................. 375 22,869
Repsol SA (Energy)................................................... 15,400 570,040
Tabacalera SA (Consumer Staples)..................................... 1,900 74,510
Telefonica de Espana SA (Information Technology)..................... 48,100 1,054,531
Union Electrica-Fenosa SA (Utilities)................................ 14,900 112,262
Uralita SA (Materials)............................................... 2,700 20,009
Vallehermoso SA (Real Estate)........................................ 2,200 45,770
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<S> <C> <C>
SPAIN (continued)
Viscofan Industria Navarra (Materials)............................... 1,200 $ 18,527
Zardoya Otis SA (Industrial & Commercial)............................ 485 51,667
-------------
5,936,325
-------------
SWEDEN -- 2.7%
AGA, Series A (Materials)............................................ 1,500 23,229
AGA, Series B (Materials)............................................ 4,150 63,341
Asea AB (Industrial & Commercial).................................... 2,500 289,252
Astra AB (Healthcare)................................................ 17,800 853,475
Atlas Copco AB (Materials)........................................... 5,850 134,150
Autoliv AB (Consumer Discretionary).................................. 1,700 74,677
Diligentia AB (Real Estate).......................................... 1,670 26,733
Electrolux AB (Consumer Staples)..................................... 2,300 134,768
Ericsson (L.M) Telephone Co., Class B (Information Technology)....... 29,000 893,888
Esselte AB (Materials)............................................... 1,100 24,979
Hennes & Mauritz AB, Series B (Consumer Discretionary)............... 1,300 187,385
Scanem AB (Industrial & Commercial).................................. 250 9,605
Securitas AB, Series B (Industrial & Commercial)..................... 2,800 80,469
Skand Enskilda Bank (Finance)........................................ 16,700 155,422
Skandia Foersaekrings AB (Finance)................................... 3,600 102,656
Skanska AB (Industrial & Commercial)................................. 3,900 172,479
SKF AB Series B (Materials).......................................... 3,800 80,633
Stadshyotek AB (Finance)............................................. 4,000 119,126
Stora Kopparbergs (Materials)........................................ 9,650 132,200
Svenska Cellulosa AB (Materials)..................................... 6,000 128,656
Svenska Handelsbank, Series A (Finance).............................. 6,400 175,353
Swedish Match Co. (Consumer Staples)................................. 14,800 48,484
Trelleborg AB (Materials)............................................ 4,200 55,036
Volvo AB (Consumer Discretionary).................................... 12,300 270,155
-------------
4,236,151
-------------
THAILAND -- 2.3%
Advance Agro PCL (Materials)......................................... 6,000 15,975
Advanced Information Services PCL (Information Technology)........... 15,400 178,477
Bangchak Petroleum PCL (Energy)...................................... 18,400 18,551
Bangkok Bank PCL (Finance)........................................... 25,600 292,680
Bangkok Land Co. Ltd. (Real Estate).................................. 11,000 12,813
Bangkok Metropolitan Bank PCL (Finance).............................. 51,937 26,944
Bank of Ayudhya PCL (Finance)........................................ 43,550 137,263
Banpu Coal PCL (Materials)........................................... 2,900 57,681
Charoen Pokphand Feedmill Co. PCL (Consumer Staples)................. 3,700 14,197
CMIC Finance & Security PCL (Finance)................................ 6,700 13,116
Dhana Siam Finance & Securities PCL (Finance)........................ 23,000 69,791
Finance One PCL (Finance)............................................ 16,700 47,732
General Finance & Securities PCL (Finance)........................... 7,650 17,971
Italian-Thai Development PCL (Industrial & Commercial)............... 16,500 108,534
Jasmine International PCL (Information Technology)................... 11,800 26,335
Krung Thai Bank PCL (Finance)........................................ 96,500 275,817
Land & Houses PCL (Consumer Discretionary)........................... 8,500 67,227
MDX PCL (Real Estate)................................................ 4,800 4,088
National Finance & Securities PCL (Finance).......................... 14,100 32,296
National Petrochemical PCL (Materials)............................... 10,900 10,563
One Holding PCL (Finance)............................................ 5,600 3,727
Phatra Thanakit PCL (Finance)........................................ 13,300 49,470
Phatra Thanakit PCL local (Finance).................................. 2,300 8,555
PTT Exploration & Production PCL (Energy)............................ 34,200 503,483
Quality House PCL (Consumer Staples)................................. 6,600 6,202
</TABLE>
- ---------------------
82
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(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
THAILAND (continued)
Sahavirya Steel Industries PCL (Materials)........................... 33,900 $ 11,946
Shinawatra Computer & Communication PCL (Information Technology)..... 9,100 120,428
Shinawatra Computer & Communication PCL local
(Information Technology)........................................... 4,500 58,495
Shinawatra Satelite PCL (Information Technology)..................... 12,300 17,096
Siam Cement Co. (Materials).......................................... 8,900 309,438
Siam City Bank PCL (Finance)......................................... 6,050 7,106
Siam City Bank PCL local (Finance)................................... 5,000 5,824
Siam City Cement PCL (Materials)..................................... 5,600 37,274
Siam City Cement PCL local (Materials)............................... 5,700 37,940
Siam Commercial Bank Co., Ltd. (Finance)............................. 11,300 98,220
Siam Makro PCL (Consumer Discretionary).............................. 3,700 16,080
Telecomasia Corp. PCL (Utilities).................................... 147,300 305,667
Telecomasia Corp. PCL local (Utilities).............................. 57,100 118,490
Thai Airways International PCL (Information & Entertainment)......... 67,000 118,048
Thai Military Bank PCL (Finance)..................................... 9,100 24,050
Thai Military Bank PCL local (Finance)............................... 4,300 11,028
Thai Telephone & Telecommunications PCL (Information Technology)..... 23,600 37,423
TPI Polene PCL (Materials)........................................... 4,300 8,671
TPI Polene PCL local (Materials)..................................... 12,600 25,407
United Communication Industries PCL (Information Technology)......... 15,400 130,240
United Communication Industries PCL local (Information Technology)... 8,100 65,332
Univest Land PCL (Real Estate)....................................... 9,300 3,059
-------------
3,566,750
-------------
UNITED KINGDOM -- 12.6%
Abbey National PLC (Finance)......................................... 28,000 327,169
Argyll Group PLC (Consumer Discretionary)............................ 17,672 115,872
Arjo Wiggins Appleton PLC (Materials)................................ 14,800 39,812
Associated British Foods PLC (Consumer Staples)...................... 11,000 81,649
B.A.T. Industries PLC (Multi-industry)............................... 63,699 508,692
Barclays PLC (Finance)............................................... 35,167 604,839
Bass PLC (Consumer Staples).......................................... 23,300 306,919
BICC Group PLC (Industrial & Commercial)............................. 14,818 71,001
Blue Circle Industries PLC (Materials)............................... 27,100 169,489
BOC Group PLC (Materials)............................................ 13,288 197,935
Boots Co. PLC (Consumer Discretionary)............................... 22,100 235,565
BPB Industries PLC (Materials)....................................... 13,700 80,961
British Aerospace PLC (Industrial & Commercial)...................... 10,237 199,129
British Airways PLC (Information & Entertainment).................... 23,512 232,432
British Gas PLC (Utilities).......................................... 89,500 328,026
British Petroleum Co. PLC (Energy)................................... 115,188 1,331,886
British Sky Broadcasting Group PLC (Information & Entertainment)..... 33,700 294,054
British Steel PLC (Materials)........................................ 41,700 116,379
British Telecommunications PLC (Information Technology).............. 119,800 758,317
BTR PLC (Industrial & Commercial).................................... 85,927 345,268
Burmah Castrol PLC (Energy).......................................... 6,200 109,761
Cable & Wireless PLC (Information Technology)........................ 51,409 411,410
Cadbury Schweppes PLC (Consumer Staples)............................. 23,000 197,789
Caradon PLC (Industrial & Commercial)................................ 17,200 68,968
Coats Viyella PLC (Consumer Discretionary)........................... 18,795 42,343
Commercial Union PLC (Finance)....................................... 13,600 150,908
Courtaulds PLC (Materials)........................................... 10,000 66,913
De La Rue PLC (Information & Entertainment).......................... 2,961 28,998
General Electric PLC (Multi-industry)................................ 59,000 369,494
GKN PLC (Industrial & Commercial).................................... 11,750 221,053
Glaxo Wellcome PLC (Healthcare)...................................... 66,100 1,087,127
</TABLE>
---------------------
83
<PAGE> 217
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (continued)
Granada Group PLC (Information & Entertainment)...................... 15,034 $ 218,888
Grand Metropolitan PLC (Information & Entertainment)................. 43,845 342,401
Great Universal Stores PLC (Consumer Discretionary).................. 24,700 284,872
Guardian Royal Exchange PLC (Finance)................................ 17,141 77,233
Guinness PLC (Consumer Staples)...................................... 45,400 339,660
Hanson PLC (Multi-industry).......................................... 106,182 141,921
Harrisons & Crossfield PLC (Multi-industry).......................... 26,600 58,137
HSBC Holdings PLC (Finance).......................................... 45,868 964,323
Imperial Chemical Industries PLC (Materials)......................... 17,600 228,285
Kingfisher PLC (Consumer Staples).................................... 1 11
Ladbroke Group PLC (Information & Entertainment)..................... 24,473 84,347
Land Securities PLC (Real Estate).................................... 16,400 203,208
LASMO PLC (Energy)................................................... 17,000 63,164
Legal & General PLC (Finance)........................................ 25,600 150,639
Lloyds TSB Group Ltd. (Finance)...................................... 112,138 776,746
Lonrho PLC (Multi-industry).......................................... 17,253 39,014
Marks & Spencer PLC (Consumer Discretionary)......................... 71,000 604,001
MEPC PLC (Real Estate)............................................... 12,500 93,414
National Power PLC (Utilities)....................................... 29,500 228,640
Peninsular & Oriental Steam PLC (Industrial & Commercial)............ 16,100 160,107
Pilkington PLC (Materials)........................................... 31,243 78,528
Prudential Corp. PLC (Finance)....................................... 40,697 333,554
Rank Group PLC (Information & Entertainment)......................... 17,500 127,984
Redland PLC (Materials).............................................. 12,217 75,997
Reed International PLC (Information & Entertainment)................. 14,700 284,831
Reuters Holdings PLC (Industrial & Commercial)....................... 34,900 424,808
Rexam PLC (Materials)................................................ 11,700 66,486
RMC Group PLC (Materials)............................................ 7,000 116,333
Royal Bank of Scotland Group PLC (Finance)........................... 10,952 96,484
Royal Sun Alliance (Finance)......................................... 28,270 213,166
RTZ Corp. PLC (Materials)............................................ 24,400 410,222
Sainsbury (J.) PLC (Consumer Discretionary).......................... 31,829 200,938
Schroders PLC (Finance).............................................. 4,500 115,753
Scottish Power PLC (Utilities)....................................... 19,628 111,208
Sears PLC (Consumer Discretionary)................................... 40,700 63,637
Sedgwick Group PLC (Finance)......................................... 11,600 24,475
Slough Estates PLC (Real Estate)..................................... 9,400 41,089
Smithkline Beecham PLC (Healthcare).................................. 50,598 697,552
Southern Electric PLC (Utilities).................................... 5,900 69,435
Tarmac PLC (Industrial & Commercial)................................. 28,226 41,997
Taylor Woodrow PLC (Industrial & Commercial)......................... 15,679 39,540
Tesco PLC (Consumer Discretionary)................................... 39,077 223,306
Thames Water PLC (Industrial & Commercial)........................... 14,833 144,016
Thorn EMI PLC (Consumer Discretionary)............................... 10,310 238,163
Thorn PLC (Consumer Discretionary)................................... 10,700 49,650
TI Group PLC (Industrial & Commercial)............................... 10,946 102,044
Unilever PLC (Consumer Staples)...................................... 13,900 327,636
United Utilities PLC (Utilities)..................................... 14,032 138,716
Vodafone Group PLC (Information Technology).......................... 66,506 287,917
Zeneca Group PLC (Real Estate)....................................... 18,500 510,087
-------------
19,814,721
-------------
UNITED STATES -- 0.0%
Millenium Chemical, Inc. (Materials)................................. 1,251 25,802
-------------
TOTAL COMMON STOCK (cost $139,710,238)............................... 144,732,522
-------------
</TABLE>
- ---------------------
84
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(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
PREFERRED STOCK -- 1.0%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRALIA -- 0.1%
News Corp., Ltd. (Information & Entertainment)....................... 22,668 $ 99,631
-------------
BRAZIL -- 0.5%
Aracruz Celulose SA (Materials)...................................... 9,400 15,106
Banco Bradesco SA (Finance).......................................... 7,215,000 52,733
Banco do Brasil SA (Finance)......................................... 749,000 6,453
Banco Estado de Sao Paulo SA (Finance)............................... 436,000 2,528
Banco Itau SA (Finance).............................................. 86,000 33,717
Cemig Cia Energy MG (Utilities)...................................... 1,115,000 35,943
Centrais Electricas Brasileiras SA (Utilities)....................... 252,000 82,699
Ceval Alimentos SA (Consumer Staples)................................ 330,000 3,239
Companhia Brasileiro de Petroleo Ipiranga (Energy)................... 415,000 5,424
Companhia Cervejaraia Brahma (Consumer Staples)...................... 65,000 38,446
Companhia Energetica de Sao Paulo (Utilities)........................ 28,000 907
Companhia Siderurgica de Tubarao (Materials)......................... 709,000 10,638
Companhia Vale do Rio Doce (Materials)............................... 3,192 67,054
Itausa Investimentos Itau SA (Finance)............................... 31,000 23,107
Klabin Fabricadora (Materials)....................................... 8,000 7,667
Petroleo Brasileiros SA (Energy)..................................... 797,000 109,559
Sadia-Concordia SA (Consumer Staples)................................ 8,000 6,041
Telecomunicacoes Brasileirassa SA (Information Technology)........... 2,969,000 224,759
Telecomunicacoes de Sao Paulo SA (Information Technology)............ 260,000 46,060
Usinas Siderurgicas de Minas Gerais SA (Materials)................... 16,473,000 16,425
-------------
788,505
-------------
GERMANY -- 0.4%
RWE AG (Utilities)................................................... 8,500 312,236
SAP AG (Materials)................................................... 1,640 225,405
-------------
537,641
-------------
ITALY -- 0.0%
Fiat SpA (Consumer Discretionary).................................... 35,500 55,032
-------------
TOTAL PREFERRED STOCK (cost $1,299,685).............................. 1,480,809
-------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 0.0% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FRANCE -- 0.0%
Casino Guichard Perrachon et Cie S.C.A. 4.50% 2001
(Consumer Discretionary)........................................... $ 43,400 17,702
Sodexho SA 6.00% 2004 (Industrial & Commercial)...................... 30,000 5,800
-------------
23,502
-------------
TOTAL BONDS & NOTES (cost $15,026)................................... 23,502
-------------
<CAPTION>
RIGHTS -- 0.0%+ SHARES
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HONG KONG -- 0.0%
Hongkong & Shanghai Hotels Ltd. (Information & Entertainment)........ 5,667 3,371
-------------
SPAIN -- 0.0%
Aguas de Barcelona (Consumer Staples)................................ 2,234 1,104
-------------
</TABLE>
---------------------
85
<PAGE> 219
(UNAUDITED)
<TABLE>
<CAPTION>
RIGHTS (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
THAILAND -- 0.0%
One Holding PCL (Finance)............................................ 5,600 $ 1,535
-------------
TOTAL RIGHTS (cost $0)............................................... 6,010
-------------
WARRANTS -- 0.7%+
----------------------------------------------------------------------------------------------------
HONG KONG -- 0.0%
Peregrine Investment Holdings Ltd. (Finance)......................... 1,200 396
-------------
BRAZIL -- 0.7%
Banco do Brasil SA, Series A (Finance)............................... 149,800 246,525
Banco do Brasil SA, Series B (Finance)............................... 224,700 337,159
Banco do Brasil SA, Series C (Finance)............................... 374,500 561,931
-------------
1,145,615
-------------
FRANCE -- 0.0%
Casino Guichard Perrachon et Cie S.C.A. (Consumer Discretionary)..... 434 4,943
Sodexho SA (Industrial & Commercial)................................. 6 1,011
-------------
5,954
-------------
HONG KONG -- 0.0%
Hong Kong & China Gas Co., Ltd. (Utilities).......................... 8,360 5,271
Hysan Development Co., Ltd. (Real Estate)............................ 1,300 992
Oriental Press Group (Information & Entertainment)................... 7,600 708
-------------
6,971
-------------
INDONESIA -- 0.0%
PT Indah Kiat Pulp & Paper Corp. (Materials)......................... 1,653 472
-------------
ITALY -- 0.0%
Mediobanca SpA (Finance)............................................. 650 304
Riunione Adriatica de Sicur (Finance)................................ 150 220
Riunione Adriatica de Sicur (Finance)................................ 250 810
-------------
1,334
-------------
MALAYSIA -- 0.0%
Metroplex Bhd (Real Estate).......................................... 1,833 958
-------------
SINGAPORE -- 0.0%
Straits Steamship Land Ltd. (Multi-industry)......................... 4,750 5,317
-------------
THAILAND -- 0.0%
One Holding PCL (Finance)............................................ 1,120 0
-------------
TOTAL WARRANTS (cost $12,230)........................................ 1,167,017
-------------
TOTAL INVESTMENT SECURITIES (cost $141,037,179)...................... 147,409,860
-------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 6.9% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 6.9%
Agreement with State Street Bank & Trust Co., bearing interest of
4.75% dated 11/29/96, to be repurchased 12/02/96 in the amount of
$10,821,282 and collateralized by $10,845,000 U.S. Treasury Notes
8.50% due 5/15/97 (cost $10,817,000)............................... $10,817,000 10,817,000
-------------
</TABLE>
- ---------------------
86
<PAGE> 220
(UNAUDITED)
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS --
(cost $151,854,179) 100.8% $158,226,860
Liabilities in excess of other assets -- (0.8) (1,218,467)
------- -------------
NET ASSETS -- 100.0% $157,008,393
======= ==============
</TABLE>
-----------------------------
+ Non-income producing securities
(1) Consists of more than one class of securities traded together
as a unit; generally bonds with attached stocks or warrants
(2) Fair valued security; see Note 2
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
-----------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DEM 3,444,825 USD 2,300,000 12/27/96 $ 56,327
DEM 213,440 USD 142,000 12/27/96 2,983
DEM 1,825,260 USD 1,200,000 12/27/96 11,178
DEM 12,254,119 USD 8,052,914 01/24/97 57,779
FRF 29,878,780 USD 5,900,000 02/24/97 152,592
FRF 5,948,675 USD 1,180,000 02/24/97 35,728
FRF 3,720,555 USD 725,000 02/24/97 9,323
JPY 242,425,842 USD 2,139,492 12/16/96 5,205
*JPY 122,773,950 USD 1,149,138 12/16/96 71,228
*JPY 294,992,500 USD 2,762,102 12/16/96 172,177
*JPY 47,341,550 USD 417,806 12/16/96 2,164
JPY 484,560,000 USD 4,500,000 12/27/96 226,359
JPY 53,965,000 USD 500,000 12/27/96 24,048
JPY 187,289,000 USD 1,700,000 12/27/96 48,180
JPY 186,889,700 USD 1,670,000 12/27/96 21,701
JPY 289,767,392 USD 2,573,766 01/30/97 7,100
JPY 837,976,008 USD 7,600,000 02/21/97 156,325
NLG 5,371,407 USD 3,190,524 02/10/97 59,960
-----------
1,120,357
-----------
<CAPTION>
GROSS UNREALIZED
DEPRECIATION
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*USD 4,200,000 JPY 465,108,000 12/16/96 $ (116,523)
-----------
Net Unrealized Appreciation.................. $ 1,003,834
===========
</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.
<TABLE>
<S> <C>
DEM -- Deutsche Mark NLG -- Netherlands Guilder
FRF -- French Franc USD -- United States Dollar
JPY -- Japanese Yen
</TABLE>
See Notes to Financial Statements
---------------------
87
<PAGE> 221
- ---------------------
SUNAMERICA SERIES TRUST
AGGRESSIVE GROWTH PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 90.4% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 5.2%
Apparel & Textiles -- 1.9%
Gucci Group NV ADR..................................................... 2,000 $ 146,750
NIKE, Inc. ............................................................ 2,000 113,750
North Face, Inc.+...................................................... 2,000 44,250
Reebok International Ltd. ............................................. 7,000 266,000
Tommy Hilfiger Corp.+.................................................. 2,000 108,000
Retail -- 3.3%
Kenneth Cole Productions, Inc.+........................................ 10,000 158,750
Neiman Marcus Group, Inc.+............................................. 7,000 243,250
Nu Skin Asia Pacific, Inc. ............................................ 10,700 316,988
Tiffany & Co. ......................................................... 5,000 184,375
Woolworth Corp.+....................................................... 10,000 240,000
-------------
1,822,113
-------------
CONSUMER STAPLES -- 1.6%
Food, Beverage & Tobacco -- 0.3%
Northland Cranberries, Inc. ........................................... 5,000 111,250
Household Products -- 1.3%
Samsonite Corp.+....................................................... 11,600 439,350
-------------
550,600
-------------
ENERGY -- 20.1%
Energy Services -- 17.8%
Cooper Cameron, Corp.+................................................. 5,000 328,750
Diamond Offshore Drilling, Inc.+....................................... 2,000 127,500
Falcon Drilling, Inc.+................................................. 10,000 400,000
Flores & Rucks, Inc.+.................................................. 5,000 245,625
Global Marine, Inc.+................................................... 15,200 296,400
Marine Drilling Co., Inc.+............................................. 10,000 158,750
McDermott International, Inc. ......................................... 15,000 266,250
Nabors Industries, Inc.+............................................... 10,000 193,750
Noble Drilling Corp.+.................................................. 18,000 346,500
Patterson Energy, Inc.+................................................ 12,000 333,000
Reading & Bates Corp.+................................................. 15,000 435,000
Seacor Holdings, Inc.+................................................. 9,000 569,250
Transocean Offshore, Inc. ............................................. 4,820 290,405
Trico Marine Services, Inc.+........................................... 25,000 1,062,500
United Meridian Corp.+................................................. 10,000 510,000
UTI Energy Corp.+...................................................... 11,000 342,375
Varco International, Inc.+............................................. 6,400 146,400
Weatherford Enterra, Inc.+............................................. 7,000 213,500
Energy Sources -- 2.3%
American Exploration Co.+.............................................. 15,000 245,625
Arakis Energy Corp.+................................................... 20,000 118,750
KN Energy, Inc. ....................................................... 5,000 203,125
Pogo Producing Co. .................................................... 5,000 220,000
-------------
7,053,455
-------------
</TABLE>
- ---------------------
88
<PAGE> 222
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 7.8%
Banks -- 0.8%
Long Island Bancorp, Inc. ............................................. 5,867 $ 187,377
PNC Bank Corp. ........................................................ 2,400 94,800
Financial Services -- 5.9%
Aames Financial Corp. ................................................. 2,000 85,750
Alex Brown, Inc. ...................................................... 2,000 120,250
Allmerica Financial Corp. ............................................. 5,000 165,625
Associates First Capital Corp. ........................................ 5,000 241,875
Bay View Capital Corp. ................................................ 10,000 412,500
Capital One Financial Corp. ........................................... 6,000 216,750
Emergent Group, Inc.+.................................................. 10,000 118,750
Household International, Inc. ......................................... 2,000 189,500
Intermediate Regional Financial Group, Inc. ........................... 9,000 316,125
Metris Cos., Inc.+..................................................... 9,500 223,250
Insurance -- 1.1%
Lawyers Title, Corp. .................................................. 7,000 133,000
Penn Treaty American Corp.+............................................ 10,000 242,500
-------------
2,748,052
-------------
HEALTHCARE -- 7.1%
Drugs -- 4.0%
Agouron Pharmaceuticals, Inc.+......................................... 5,000 274,375
Biogen, Inc.+.......................................................... 10,000 382,500
Guilford Pharmaceuticals, Inc. ........................................ 9,600 169,200
Ligand Pharmaceuticals, Inc.+.......................................... 10,000 120,625
Teva Pharmaceutical Industries Ltd. ADR................................ 10,100 467,125
Health Services -- 2.4%
Genset ADR.+........................................................... 5,000 85,625
HBO & Co. ............................................................. 5,000 284,375
Maxicare Health Plans, Inc.+........................................... 15,000 309,375
NovaCare, Inc.+........................................................ 20,000 170,000
Medical Products -- 0.7%
Boston Scientific Corp.+............................................... 3,000 175,125
Nitinol Medical Technologies, Inc.+.................................... 5,000 54,375
-------------
2,492,700
-------------
INDUSTRIAL & COMMERCIAL -- 7.4%
Aerospace & Military Technology -- 0.8%
Hexcel Corp.+.......................................................... 10,000 181,250
REMEC, Inc.+........................................................... 5,100 97,537
Business Services -- 4.5%
Culligan Water Technologies, Inc.+..................................... 10,000 372,500
Global DirectMail Corp.+............................................... 3,000 135,000
Lason Holdings, Inc.+.................................................. 2,000 39,000
National Data Corp. ................................................... 6,000 239,250
Philip Environmental, Inc. ............................................ 10,000 130,000
Registry, Inc.+........................................................ 5,000 244,375
TeleSpectrum Worldwide, Inc.+.......................................... 15,000 266,250
United States Filter Corp. ............................................ 5,000 171,250
Electrical Equipment -- 0.1%
Thermo Optek Corp.+.................................................... 2,000 24,250
</TABLE>
---------------------
89
<PAGE> 223
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Multi-Industry -- 2.0%
Rockwell International Corp. .......................................... 5,000 $ 321,250
Tyco International Ltd. ............................................... 7,000 383,250
-------------
2,605,162
-------------
INFORMATION & ENTERTAINMENT -- 5.6%
Broadcasting & Media -- 2.6%
BTG, Inc.+............................................................. 12,200 245,525
Cox Radio, Inc.+....................................................... 4,000 70,000
Mecklermedia Corp.+.................................................... 20,400 413,100
Univision Communications, Inc.+........................................ 5,000 198,750
Communication Equipment -- 0.1%
ANADIGICS, Inc.+....................................................... 700 26,250
Entertainment Products -- 0.6%
Panavision, Inc. ...................................................... 10,000 223,750
Leisure & Tourism -- 2.3%
Extended Stay America, Inc.+........................................... 4,000 83,000
HFS, Inc.+............................................................. 2,000 129,500
Mirage Resorts, Inc.+.................................................. 6,000 144,750
Promus Hotel Corp.+.................................................... 5,000 161,250
Sabre Group Holdings, Inc.+............................................ 6,300 184,275
Suburban Lodges America, Inc.+......................................... 5,000 86,250
-------------
1,966,400
-------------
INFORMATION TECHNOLOGY -- 31.5%
Communication Equipment -- 2.2%
ADC Telecommunications, Inc.+.......................................... 10,000 362,500
Tellabs, Inc.+......................................................... 10,000 397,500
Computers & Business Equipment -- 8.1%
3Com Corp.+............................................................ 3,000 225,375
Adaptec, Inc.+......................................................... 10,000 372,500
BDM International, Inc.+............................................... 2,000 94,000
Cabletron Systems, Inc.+............................................... 10,000 403,750
Cascade Communications Co.+............................................ 2,000 138,250
Cognos, Inc.+.......................................................... 10,000 380,000
COMPAQ Computer, Corp.+................................................ 3,000 237,750
Lexmark International Group, Inc.+..................................... 15,000 388,125
Quantum Corp.+......................................................... 10,000 267,500
Security Dynamics Technologies, Inc.+.................................. 2,000 82,250
Sun Microsystems, Inc.+................................................ 3,000 174,750
United States Office Products Co.+..................................... 3,100 96,100
Electronics -- 8.8%
Analog Devices, Inc.+.................................................. 5,000 160,625
Chips & Technologies, Inc.+............................................ 20,000 421,250
Concord EFS, Inc. ..................................................... 10,000 291,250
Cymer, Inc.+........................................................... 10,000 332,500
Diebold, Inc. ......................................................... 4,105 244,761
ESS Technology, Inc.+.................................................. 10,000 197,500
Integrated Device Technology, Inc.+.................................... 20,000 248,750
KLA Instruments, Corp.+................................................ 10,000 355,000
Linear Technology Corp. ............................................... 2,000 94,250
LSI Logic Corp.+....................................................... 5,000 150,625
Maxim Integrated Products, Inc.+....................................... 2,000 92,750
</TABLE>
- ---------------------
90
<PAGE> 224
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Electronics (continued)
Micrel, Inc.+.......................................................... 3,000 $ 75,375
Novellus Systems, Inc.+................................................ 5,000 287,500
Vitesse Semiconductor Corp.+........................................... 3,000 143,250
Software -- 7.1%
BMC Software, Inc.+.................................................... 2,000 87,000
Cadence Design Systems, Inc.+.......................................... 5,000 199,375
Cisco Systems, Inc.+................................................... 3,000 203,625
Geoworks+.............................................................. 1,000 22,000
Ingram Micro, Inc.+.................................................... 10,000 246,250
Microsoft Corp.+....................................................... 2,000 313,750
Parametric Technology Corp.+........................................... 5,000 271,875
Rational Software Corp.+............................................... 5,000 176,250
Segue Software, Inc.+.................................................. 20,000 255,000
Trusted Information Systems, Inc.+..................................... 3,000 36,000
Veritas DGC, Inc.+..................................................... 10,000 213,750
Veritas Software Co. .................................................. 3,000 139,125
VIASOFT, Inc.+......................................................... 6,000 271,500
Videoserver, Inc.+..................................................... 1,050 51,450
Telecommunications -- 5.3%
Lucent Technologies, Inc. ............................................. 10,000 512,500
Pacific Gateway Exchange, Inc.+........................................ 10,000 281,250
PairGain Technologies, Inc.+........................................... 4,300 274,662
Telco Systems, Inc.+................................................... 10,000 178,750
Teleport Communications Group+......................................... 10,000 331,250
Verilink Corp.+........................................................ 10,000 300,000
-------------
11,081,098
-------------
MATERIALS -- 0.9%
Chemicals -- 0.9%
Nalco Chemical Co. .................................................... 3,000 114,375
Praxair, Inc. ......................................................... 4,000 194,500
-------------
308,875
-------------
REAL ESTATE -- 2.5%
Real Estate Companies -- 0.6%
Green Tree Financial Corp. ............................................ 5,000 209,375
Real Estate Investment Trusts -- 1.9%
Bay Apartment Communities, Inc. ....................................... 5,000 162,500
Innkeepers USA Trust................................................... 20,000 250,000
Starwood Lodging Trust+................................................ 5,000 238,750
-------------
860,625
-------------
UTILITIES -- 0.7%
Gas & Pipeline Utilities -- 0.7%
El Paso Natural Gas Co. ............................................... 5,000 250,000
-------------
TOTAL COMMON STOCK (cost $28,763,635).................................. 31,739,080
-------------
</TABLE>
---------------------
91
<PAGE> 225
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
WARRANTS -- 1.0%+
----------------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 1.0%
Electronics -- 1.0%
Intel Corp. (cost $235,232)............................................ 4,000 $ 351,000
-------------
TOTAL INVESTMENT SECURITIES (cost $28,998,867)......................... 32,090,080
-------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 8.0% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 8.0%
Joint Repurchase Agreement Account (Note 3)
(cost $2,812,000).................................................... $2,812,000 $ 2,812,000
-------------
TOTAL INVESTMENTS --
(cost $31,810,867) 99.4% 34,902,080
Other assets less liabilities -- 0.6 222,222
------ -------------
NET ASSETS -- 100.0% $35,124,302
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depositary Receipt
See Notes to Financial Statements
- ---------------------
92
<PAGE> 226
(This page intentionally left blank)
---------------------
93
<PAGE> 227
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
CASH CORPORATE HIGH-YIELD
MANAGEMENT GLOBAL BOND BOND BOND
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*........................... $ -- $55,068,056 $34,813,533 $110,313,939
Short-term securities*..................................... 85,399,799 13,051,000 2,024,417 --
Repurchase agreements (cost equals market)................. 5,615,000 -- -- 3,610,000
Cash....................................................... 626 486 182 --
Foreign currency........................................... -- 179 -- --
Receivables for --
Dividends and accrued interest............................ 682,900 1,077,171 688,681 1,348,838
Fund shares sold.......................................... 206,746 36,029 34,595 171,705
Foreign currency contracts................................ -- 5,516,556 -- --
Sales of investments...................................... -- 2,524,512 742,225 --
Variation margin on futures contract...................... -- -- -- --
Deferred organizational expenses........................... 8,392 4,639 4,639 --
Prepaid expenses........................................... 5,647 2,155 1,081 7,899
Unrealized appreciation on forward foreign currency
contracts................................................. -- 755,339 -- --
Due from adviser........................................... -- -- -- --
------------------------------------------------------
91,919,110 78,036,122 38,309,353 115,452,381
------------------------------------------------------
LIABILITIES:
Payables for --
Fund shares redeemed...................................... 583,518 26,851 18,021 31,652
Management fees........................................... 50,500 39,696 20,956 61,082
Foreign currency contracts................................ -- 5,525,813 -- --
Purchases of investments.................................. -- 3,752,561 1,042,639 2,000,000
Other accrued expenses..................................... 38,296 32,202 20,330 30,723
Unrealized depreciation on forward foreign currency
contracts................................................. -- 437,582 -- --
Due to custodian bank...................................... -- -- -- 99,831
------------------------------------------------------
672,314 9,814,705 1,101,946 2,223,288
------------------------------------------------------
NET ASSETS................................................. $91,246,796 $68,221,417 $37,207,407 $113,229,093
======================================================
Shares of beneficial interest outstanding
(unlimited shares authorized)............................. 8,479,746 5,984,546 3,354,369 10,252,646
Net asset value per share.................................. $10.76 $11.40 $11.09 $11.04
======================================================
COMPOSITION OF NET ASSETS:
Capital paid in............................................ $84,932,639 $61,358,932 $34,823,040 $107,922,671
Accumulated undistributed net investment income (loss)..... 6,322,350 2,980,794 2,004,279 8,882,962
Accumulated undistributed net realized gain (loss) on
investments, future contracts and options contracts....... (1,776) 1,516,702 (779,031) (8,469,821)
Unrealized appreciation (depreciation) on investments...... (6,417) 2,040,685 1,159,119 4,893,281
Unrealized foreign exchange gain (loss) on other assets and
liabilities............................................... -- 324,304 -- --
Unrealized appreciation on futures contracts............... -- -- -- --
------------------------------------------------------
$91,246,796 $68,221,417 $37,207,407 $113,229,093
======================================================
---------------
* Cost
Investment securities..................................... $ -- $53,027,371 $33,656,304 $105,420,658
======================================================
Short-term securities..................................... $85,402,216 $13,051,000 $ 2,022,527 $ --
======================================================
<CAPTION>
BALANCED/
HIGH INCOME BALANCED COUNSEL
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value*........................... $43,004,340 $ 8,382,188 $65,078,152
Short-term securities*..................................... 1,672,625 -- 10,481,073
Repurchase agreements (cost equals market)................. 4,207,000 1,605,000 --
Cash....................................................... 36 2,409 1,084
Foreign currency........................................... 47,598 -- --
Receivables for --
Dividends and accrued interest............................ 826,307 20,558 238,833
Fund shares sold.......................................... 197,951 23,328 139,720
Foreign currency contracts................................ -- -- --
Sales of investments...................................... 1,833,978 215,415 209,468
Variation margin on futures contract...................... -- -- --
Deferred organizational expenses........................... -- -- --
Prepaid expenses........................................... 1,489 214 1,881
Unrealized appreciation on forward foreign currency
contracts................................................. -- -- --
Due from adviser........................................... -- -- --
---------------------------------------
51,791,324 10,249,112 76,150,211
---------------------------------------
LIABILITIES:
Payables for --
Fund shares redeemed...................................... 10,417 965 (6,633)
Management fees........................................... 37,932 5,263 38,201
Foreign currency contracts................................ -- -- --
Purchases of investments.................................. 2,516,164 8,000 6,073,213
Other accrued expenses..................................... 22,314 11,090 24,872
Unrealized depreciation on forward foreign currency
contracts................................................. -- -- --
Due to custodian bank...................................... -- -- --
---------------------------------------
2,586,827 25,318 6,129,653
---------------------------------------
NET ASSETS................................................. $49,204,497 $10,223,794 $70,020,558
=======================================
Shares of beneficial interest outstanding
(unlimited shares authorized)............................. 3,686,196 918,897 5,136,034
Net asset value per share.................................. $13.35 $11.13 $13.63
=======================================
COMPOSITION OF NET ASSETS:
Capital paid in............................................ $40,168,259 $ 9,316,155 $60,805,241
Accumulated undistributed net investment income (loss)..... 3,585,842 56,068 1,257,250
Accumulated undistributed net realized gain (loss) on
investments, future contracts and options contracts....... 2,553,545 28,763 2,091,938
Unrealized appreciation (depreciation) on investments...... 2,901,328 822,808 5,866,129
Unrealized foreign exchange gain (loss) on other assets and
liabilities............................................... (4,477) -- --
Unrealized appreciation on futures contracts............... -- -- --
---------------------------------------
$49,204,497 $10,223,794 $70,020,558
=======================================
---------------
* Cost
Investment securities..................................... $40,068,547 $ 7,559,380 $59,211,897
=======================================
Short-term securities..................................... $ 1,707,090 $ -- $10,481,199
=======================================
</TABLE>
See Notes to Financial Statements
- ---------------------
94
<PAGE> 228
(UNAUDITED)
<TABLE>
<CAPTION>
GROWTH/
PHOENIX
ASSET GROWTH- FEDERATED VENTURE ALLIANCE INVESTMENT
ALLOCATION UTILITY INCOME VALUE VALUE GROWTH COUNSEL
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$295,030,703 $6,089,127 $305,430,493 $11,351,546 $470,817,990 $379,243,925 $163,462,090
10,732,180 335,000 19,301,187 964,000 45,662,541 1,130,589 22,848,833
31,386,000 -- -- -- -- -- --
604 481 3,993,576 941 42,167 893 1,900
-- 156 -- -- -- -- --
1,976,320 24,086 454,314 25,821 580,531 184,116 189,834
403,055 31,422 510,742 191,156 1,291,724 807,750 104,831
-- -- -- -- -- -- --
19,577,992 -- -- -- -- 3,127,265 --
125,892 -- 51,750 -- -- 13,800 --
4,639 -- -- -- -- -- 5,069
-- 124 12,555 208 11,793 12,937 5,299
8,641 -- -- -- -- -- --
-- 2,048 -- -- -- -- --
---------------------------------------------------------------------------------------------------------------
359,246,026 6,482,444 329,754,617 12,533,672 518,406,746 384,521,275 186,617,856
---------------------------------------------------------------------------------------------------------------
160,177 544 73,430 1,496 265,917 172,208 102,648
157,566 3,589 159,693 6,830 298,344 179,786 97,211
-- -- -- -- -- -- --
42,456,796 168,966 3,992,876 52,272 1,325,443 2,728,676 --
83,061 10,698 65,293 13,546 103,671 73,932 50,419
-- -- -- -- -- -- --
-- -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------
42,857,600 183,797 4,291,292 74,144 1,993,375 3,154,602 250,278
---------------------------------------------------------------------------------------------------------------
$316,388,426 $6,298,647 $325,463,325 $12,459,528 $516,413,371 $381,366,673 $186,367,578
===============================================================================================================
21,790,902 585,876 19,355,026 1,124,250 30,564,207 20,365,649 12,955,501
$14.52 $10.75 $16.82 $11.08 $16.90 $18.73 $14.39
===============================================================================================================
$251,012,742 $5,916,489 $239,798,335 $11,245,757 $412,229,764 $290,961,176 $141,611,796
8,661,444 81,705 2,766,714 40,137 3,379,995 1,193,834 1,323,305
19,448,565 12,623 14,863,794 (22,475) 9,683,771 21,987,346 16,103,504
36,004,144 287,691 67,072,101 1,196,109 91,119,500 66,826,817 27,328,973
-- -- -- -- 341 -- --
1,261,531 139 962,381 -- -- 397,500 --
---------------------------------------------------------------------------------------------------------------
$316,388,426 $6,298,647 $325,463,325 $12,459,528 $516,413,371 $381,366,673 $186,367,578
===============================================================================================================
$258,995,622 $5,801,436 $238,355,190 $10,155,437 $379,698,490 $312,417,108 $136,132,691
===============================================================================================================
$ 10,763,117 $ 335,000 $ 19,304,389 $ 964,000 $ 45,662,541 $ 1,130,589 $ 22,849,259
===============================================================================================================
<CAPTION>
INTERNATIONAL
PROVIDENT GLOBAL DIVERSIFIED AGGRESSIVE
GROWTH EQUITIES EQUITIES GROWTH
-----------------------------------------------------------------
<S> <C> <C> <C>
$154,538,664 $239,160,707 $147,409,860 $ 32,090,080
-- 10,826,000 -- --
6,998,000 -- 10,817,000 2,812,000
79 931 543 1,311
-- 183,362 209,589 --
67,208 521,766 387,331 7,634
223,222 241,255 525,802 178,373
-- -- 3,438,774 --
400,831 520,538 323,521 104,615
-- -- -- --
-- -- -- --
8,873 11,461 3,989 597
-- -- 1,120,357 --
-- -- -- --
-----------------------------------------------------------------
162,236,877 251,466,020 164,236,766 35,194,610
-----------------------------------------------------------------
56,930 67,053 29,170 3,918
103,593 153,805 122,121 19,189
-- 3,428,378 --
1,964,853 4,617,059 3,367,273 30,543
38,456 146,097 164,908 16,658
-- -- 116,523 --
-- -- -- --
-----------------------------------------------------------------
2,163,832 4,984,014 7,228,373 70,308
-----------------------------------------------------------------
$160,073,045 $246,482,006 $157,008,393 $ 35,124,302
=================================================================
10,189,121 16,515,390 13,810,494 3,389,423
$15.71 $14.92 $11.37 $10.36
=================================================================
$109,309,413 $201,906,166 $144,459,565 $ 32,699,261
(23,455) 1,730,415 (1,215,541) 39,730
5,451,594 12,453,792 6,394,840 (705,902)
45,335,493 30,389,997 6,372,681 3,091,213
-- 1,636 996,848 --
-- -- -- --
-----------------------------------------------------------------
$160,073,045 $246,482,006 $157,008,393 $ 35,124,302
=================================================================
$109,203,171 $208,770,710 $141,037,179 $ 28,998,867
=================================================================
$ -- $ 10,826,000 $ -- $ --
=================================================================
</TABLE>
---------------------
95
<PAGE> 229
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
BALANCED/
WORLDWIDE PHOENIX
CASH GLOBAL CORPORATE HIGH-YIELD HIGH SUNAMERICA INVESTMENT
MANAGEMENT BOND BOND BOND INCOME BALANCED# COUNSEL
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Income:
Interest......................... $7,122,754 $3,981,095 $2,328,256 $ 9,574,555 $4,267,728 $ 62,733 $1,466,951
Dividends........................ -- -- -- 46,590 15,366 22,547 358,182
----------------------------------------------------------------------------------------
Total income*................ 7,122,754 3,981,095 2,328,256 9,621,145 4,283,094 85,280 1,825,133
----------------------------------------------------------------------------------------
Expenses:
Management fees.................. 694,655 458,390 230,031 638,948 368,821 20,449 354,683
Custodian fees................... 57,365 74,265 53,480 46,245 42,745 14,675 50,550
Reports to investors............. 17,845 9,715 16,635 14,330 5,900 735 8,300
Auditing fees.................... 10,990 10,400 7,245 13,005 8,515 5,350 11,445
Amortization of organizational
expenses....................... 7,192 3,964 3,964 3,832 1,798 -- --
Trustees' fees................... 2,285 1,207 507 1,705 628 74 913
Legal fees....................... 905 145 5,775 700 155 124 940
Interest expense................. -- -- -- 7,414 -- -- --
Other expenses................... 4,114 2,324 1,224 2,944 603 297 682
----------------------------------------------------------------------------------------
Total expenses before
reimbursement................ 795,351 560,410 318,861 729,123 429,165 41,704 427,513
Expenses reimbursed by the
investment adviser........... -- -- -- -- -- (12,492) --
----------------------------------------------------------------------------------------
Net investment income (loss)....... 6,327,403 3,420,685 2,009,395 8,892,022 3,853,929 56,068 1,397,620
----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gain (loss) on
investments.................... (1,609) 845,133 (242,797) 567,983 2,824,669 28,763 2,107,376
Net realized gain (loss) on
futures and options
contracts...................... -- 59,164 (180,880) -- -- -- --
Net realized foreign exchange
gain (loss) on other assets and
liabilities.................... -- 1,545,047 -- -- (245,282) -- --
Change in unrealized
appreciation/depreciation on
investments.................... (9,491) 1,124,599 647,548 4,227,884 2,512,138 822,808 3,902,857
Change in unrealized foreign
exchange gain/loss on other
assets and liabilities......... -- (253,318) -- -- (4,477) -- --
Change in unrealized
appreciation/depreciation on
futures contracts.............. -- -- (39,889) -- -- -- --
----------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments and
foreign currencies............. (11,100) 3,320,625 183,982 4,795,867 5,087,048 851,571 6,010,233
----------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS........ $6,316,303 $6,741,310 $2,193,377 $13,687,889 $8,940,977 $907,639 $7,407,853
========================================================================================
---------------
* Net of foreign withholding taxes
on interest and dividends of:..... $ -- $ 44,228 $ 500 $ -- $ 994 $ 216 $ 1,389
========================================================================================
</TABLE>
# Commenced operations June 3, 1996
See Notes to Financial Statements
- ---------------------
96
<PAGE> 230
(UNAUDITED)
<TABLE>
<CAPTION>
GROWTH/
PHOENIX
ASSET GROWTH- FEDERATED VENTURE ALLIANCE INVESTMENT PROVIDENT
ALLOCATION UTILITY# INCOME VALUE# VALUE GROWTH COUNSEL GROWTH
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 7,138,642 $ 6,557 $ 624,063 $ 9,153 $ 1,803,954 $ 273,003 $ 1,005,335 $ 432,804
3,835,134 94,594 3,790,860 64,547 4,411,641 2,624,079 1,524,769 723,018
-----------------------------------------------------------------------------------------------------------------------
10,973,776 101,151 4,414,923 73,700 6,215,595 2,897,082 2,530,104 1,155,822
-----------------------------------------------------------------------------------------------------------------------
1,616,647 13,890 1,476,902 23,973 2,305,064 1,522,222 1,072,976 1,073,769
128,585 15,695 77,065 19,060 152,435 81,580 72,015 57,725
39,430 560 36,565 1,120 51,375 38,740 23,460 18,935
32,815 5,030 33,600 5,440 48,620 37,230 20,405 17,390
3,964 -- 3,832 -- -- 3,832 3,832 3,832
4,510 74 4,207 74 5,902 4,522 2,882 2,174
3,065 124 3,304 277 5,930 3,850 1,290 1,090
-- -- -- -- -- -- -- --
7,799 289 6,127 296 5,331 5,668 5,978 4,362
-----------------------------------------------------------------------------------------------------------------------
1,836,815 35,662 1,641,602 50,240 2,574,657 1,697,644 1,202,838 1,179,277
-- (16,216) -- (16,677) -- -- -- --
-----------------------------------------------------------------------------------------------------------------------
9,136,961 81,705 2,773,321 40,137 3,640,938 1,199,438 1,327,266 (23,455)
-----------------------------------------------------------------------------------------------------------------------
19,730,122 12,853 13,516,427 (22,475) 9,692,354 21,793,902 16,211,794 8,612,831
391,668 -- 1,426,165 -- -- 433,180 -- --
89 (230) 29 -- 2,021 -- (510) --
18,681,439 287,691 42,693,932 1,196,109 75,918,377 46,485,737 10,855,474 17,288,052
-- 139 -- -- 341 -- 21 --
1,166,581 -- 962,381 -- -- 300,750 -- --
-----------------------------------------------------------------------------------------------------------------------
39,969,899 300,453 58,598,934 1,173,634 85,613,093 69,013,569 27,066,779 25,900,883
-----------------------------------------------------------------------------------------------------------------------
$49,106,860 $382,158 $61,372,255 $1,213,771 $89,254,031 $70,213,007 $28,394,045 $25,877,428
=======================================================================================================================
$ 11,115 $ -- $ 4,119 $ 564 $ 30,896 $ 3,179 $ 13,195 $ 10,805
=======================================================================================================================
<CAPTION>
INTERNATIONAL
GLOBAL DIVERSIFIED AGGRESSIVE
EQUITIES EQUITIES GROWTH#
--------------------------------------------
<S> <C> <C> <C>
$ 575,056 $ 283,647 $ 104,281
3,650,127 1,830,322 26,838
--------------------------------------------
4,225,183 2,113,969 131,119
--------------------------------------------
1,627,510 1,025,593 65,277
394,465 563,555 19,145
32,000 17,420 2,075
26,665 18,000 7,190
3,832 1,798 --
3,547 2,122 224
1,880 1,925 333
-- -- --
6,523 2,181 330
--------------------------------------------
2,096,422 1,632,594 94,574
-- -- (3,185)
--------------------------------------------
2,128,761 481,375 39,730
--------------------------------------------
12,300,321 1,688,079 (705,902)
-- -- --
496,594 5,292,994 --
19,341,166 5,555,457 3,091,213
(27,011) (813,250) --
-- -- --
--------------------------------------------
32,111,070 11,723,280 2,385,311
--------------------------------------------
$34,239,831 $12,204,655 $2,425,041
============================================
$ 181,016 $ 247,089 $ 250
============================================
</TABLE>
---------------------
97
<PAGE> 231
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED NOVEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
CASH GLOBAL CORPORATE HIGH-YIELD
MANAGEMENT BOND BOND BOND
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......................... $ 6,327,403 $ 3,420,685 $ 2,009,395 $ 8,892,022
Net realized gain (loss) on investments............... (1,609) 845,133 (242,797) 567,983
Net realized gain (loss) on futures and options
contracts............................................ -- 59,164 (180,880) --
Net realized foreign exchange gain (loss) on other
assets and liabilities............................... -- 1,545,047 -- --
Change in unrealized appreciation/depreciation on
investments.......................................... (9,491) 1,124,599 647,548 4,227,884
Change in unrealized foreign exchange gain/loss on
other assets and liabilities......................... -- (253,318) -- --
Change in unrealized appreciation/depreciation on
futures contracts.................................... -- -- (39,889) --
---------------------------------------------------------
Net increase in net assets resulting from
operations........................................... 6,316,303 6,741,310 2,193,377 13,687,889
---------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income................. (4,240,000) (4,060,000) (1,225,000) (7,420,000)
Distribution from net realized gain on investments... (4,750) -- -- --
---------------------------------------------------------
Total dividends and distributions to shareholders..... (4,244,750) (4,060,000) (1,225,000) (7,420,000)
---------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold............................. 615,571,205 26,461,284 20,121,281 89,355,894
Proceeds from shares issued for reinvestment of
dividends and distributions.......................... 4,244,750 4,060,000 1,225,000 7,420,000
Cost of shares repurchased............................ (621,371,905) (24,740,221) (14,581,771) (71,988,357)
---------------------------------------------------------
Net increase (decrease) in net assets resulting from
capital share transactions........................... (1,555,950) 5,781,063 6,764,510 24,787,537
---------------------------------------------------------
TOTAL INCREASE IN NET ASSETS.......................... 515,603 8,462,373 7,732,887 31,055,426
NET ASSETS:
Beginning of period................................... 90,731,193 59,759,044 29,474,520 82,173,667
---------------------------------------------------------
End of period......................................... $ 91,246,796 $ 68,221,417 $ 37,207,407 $113,229,093
=========================================================
---------------
Undistributed net investment income (loss)............ $ 6,322,350 $ 2,980,794 $ 2,004,279 $ 8,882,962
=========================================================
Shares issued and repurchased:
Sold.................................................. 57,928,895 2,437,840 1,891,179 8,529,658
Issued in reinvestment of dividends and
distributions........................................ 408,149 391,137 118,015 744,233
Repurchased........................................... (58,340,347) (2,268,851) (1,379,014) (6,827,580)
---------------------------------------------------------
Net increase (decrease)............................... (3,303) 560,126 630,180 2,446,311
=========================================================
<CAPTION>
BALANCED/
INCOME BALANCED# COUNSEL
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......................... $ 3,853,929 $ 56,068 $ 1,397,620
Net realized gain (loss) on investments............... 2,824,669 28,763 2,107,376
Net realized gain (loss) on futures and options
contracts............................................ -- -- --
Net realized foreign exchange gain (loss) on other
assets and liabilities............................... (245,282) -- --
Change in unrealized appreciation/depreciation on
investments.......................................... 2,512,138 822,808 3,902,857
Change in unrealized foreign exchange gain/loss on
other assets and liabilities......................... (4,477) -- --
Change in unrealized appreciation/depreciation on
futures contracts.................................... -- -- --
-----------------------------------------
Net increase in net assets resulting from
operations........................................... 8,940,977 907,639 7,407,853
-----------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income................. (1,700,000) -- (540,000)
Distribution from net realized gain on investments... (100,000) -- (890,000)
-----------------------------------------
Total dividends and distributions to shareholders..... (1,800,000) -- (1,430,000)
-----------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold............................. 48,071,872 11,344,623 44,916,086
Proceeds from shares issued for reinvestment of
dividends and distributions.......................... 1,800,000 -- 1,430,000
Cost of shares repurchased............................ (29,323,432) (2,028,468) (14,731,916)
-----------------------------------------
Net increase (decrease) in net assets resulting from
capital share transactions........................... 20,548,440 9,316,155 31,614,170
-----------------------------------------
TOTAL INCREASE IN NET ASSETS.......................... 27,689,417 10,223,794 37,592,023
NET ASSETS:
Beginning of period................................... 21,515,080 -- 32,428,535
-----------------------------------------
End of period......................................... $ 49,204,497 $10,223,794 $ 70,020,558
=========================================
---------------
Undistributed net investment income (loss)............ $ 3,585,842 $ 56,068 $ 1,257,250
=========================================
Shares issued and repurchased:
Sold.................................................. 4,060,525 1,113,491 3,604,718
Issued in reinvestment of dividends and
distributions........................................ 166,821 -- 117,502
Repurchased........................................... (2,425,678) (194,594) (1,184,892)
-----------------------------------------
Net increase (decrease)............................... 1,801,668 918,897 2,537,328
=========================================
</TABLE>
# Commenced operations June 3, 1996
See Notes to Financial Statements
- ---------------------
98
<PAGE> 232
(UNAUDITED)
<TABLE>
<CAPTION>
GROWTH/
PHOENIX
ASSET GROWTH- FEDERATED VENTURE ALLIANCE INVESTMENT
ALLOCATION UTILITY# INCOME VALUE# VALUE GROWTH COUNSEL
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 9,136,961 $ 81,705 $ 2,773,321 $ 40,137 $ 3,640,938 $ 1,199,438 $ 1,327,266
19,730,122 12,853 13,516,427 (22,475) 9,692,354 21,793,902 16,211,794
391,668 -- 1,426,165 -- -- 433,180 --
89 (230) 29 -- 2,021 -- (510)
18,681,439 287,691 42,693,932 1,196,109 75,918,377 46,485,737 10,855,474
-- 139 -- -- 341 -- 21
1,166,581 -- 962,381 -- -- 300,750 --
----------------------------------------------------------------------------------------------------------------
49,106,860 382,158 61,372,255 1,213,771 89,254,031 70,213,007 28,394,045
----------------------------------------------------------------------------------------------------------------
(5,505,000) -- (1,680,000) -- (1,150,000) (483,000) (1,265,000)
(6,805,000) -- (5,975,000) -- (1,631,000) (13,185,000) (10,645,000)
----------------------------------------------------------------------------------------------------------------
(12,310,000) -- (7,655,000) -- (2,781,000) (13,668,000) (11,910,000)
----------------------------------------------------------------------------------------------------------------
108,836,939 6,090,461 145,602,473 11,583,467 358,199,882 247,316,545 46,376,696
12,310,000 -- 7,655,000 -- 2,781,000 13,668,000 11,910,000
(41,391,763) (173,972) (52,792,476) (337,710) (85,948,539) (104,032,606) (38,313,646)
----------------------------------------------------------------------------------------------------------------
79,755,176 5,916,489 100,464,997 11,245,757 275,032,343 156,951,939 19,973,050
----------------------------------------------------------------------------------------------------------------
116,552,036 6,298,647 154,182,252 12,459,528 361,505,374 213,496,946 36,457,095
199,836,390 -- 171,281,073 -- 154,907,997 167,869,727 149,910,483
----------------------------------------------------------------------------------------------------------------
$316,388,426 $6,298,647 $325,463,325 $12,459,528 $516,413,371 $ 381,366,673 $186,367,578
================================================================================================================
$ 8,661,444 $ 81,705 $ 2,766,714 $ 40,137 $ 3,379,995 $ 1,193,834 $ 1,323,305
================================================================================================================
8,296,399 602,909 9,953,598 1,158,140 24,918,067 15,394,232 3,516,917
970,055 -- 541,755 -- 208,003 893,333 949,004
(3,164,619) (17,033) (3,630,349) (33,890) (6,065,330) (6,661,296) (2,922,221)
----------------------------------------------------------------------------------------------------------------
6,101,835 585,876 6,865,004 1,124,250 19,060,740 9,626,269 1,543,700
================================================================================================================
<CAPTION>
INTERNATIONAL
PROVIDENT GLOBAL DIVERSIFIED AGGRESSIVE
GROWTH EQUITIES EQUITIES GROWTH#
------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ (23,455) $ 2,128,761 $ 481,375 $ 39,730
8,612,831 12,300,321 1,688,079 (705,902)
-- -- -- --
-- 496,594 5,292,994 --
17,288,052 19,341,166 5,555,457 3,091,213
-- (27,011) (813,250) --
-- -- -- --
------------------------------------------------------------------
25,877,428 34,239,831 12,204,655 2,425,041
------------------------------------------------------------------
-- (1,885,000) (1,350,000) --
-- (4,480,000) -- --
------------------------------------------------------------------
-- (6,365,000) (1,350,000) --
------------------------------------------------------------------
55,935,417 99,072,900 133,585,152 39,091,029
-- 6,365,000 1,350,000 --
(37,015,839) (52,582,422) (37,742,073) (6,391,768)
------------------------------------------------------------------
18,919,578 52,855,478 97,193,079 32,699,261
------------------------------------------------------------------
44,797,006 80,730,309 108,047,734 35,124,302
115,276,039 165,751,697 48,960,659 --
------------------------------------------------------------------
$160,073,045 $246,482,006 $157,008,393 $35,124,302
==================================================================
$ (23,455) $ 1,730,415 $ (1,215,541) $ 39,730
==================================================================
4,113,284 7,165,202 12,354,619 4,051,127
-- 472,181 130,941 --
(2,724,390) (3,815,033) (3,499,995) (661,704)
------------------------------------------------------------------
1,388,894 3,822,350 8,985,565 3,389,423
==================================================================
</TABLE>
---------------------
99
<PAGE> 233
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED NOVEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
WORLDWIDE
CASH GLOBAL CORPORATE HIGH-YIELD HIGH
MANAGEMENT BOND BOND BOND INCOME
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)................... $ 4,241,505 $ 2,876,243 $ 1,224,668 $ 7,526,895 $1,504,113
Net realized gain (loss) on investments........ 5,110 1,618,834 581,976 (3,711,235) 76,600
Net realized gain (loss) on futures and options
contracts.................................... -- -- 13,918 -- --
Net realized foreign exchange gain (loss) on
other assets and liabilities................. -- 1,319,839 -- -- --
Change in unrealized appreciation/depreciation
on investments............................... 44,053 1,593,149 1,262,150 4,427,627 484,883
Change in unrealized foreign exchange gain/loss
on other assets and liabilities.............. -- 1,814 -- -- --
Change in unrealized appreciation/depreciation
on futures contracts......................... -- -- 39,889 -- --
--------------------------------------------------------------------
Net increase in net assets resulting from
operations................................... 4,290,668 7,409,879 3,122,601 8,243,287 2,065,596
--------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income......... (2,210,000) (1,700,000) (885,000) (6,340,000) (114,929)
Distributions from net realized gain on
investments................................ -- -- -- -- --
--------------------------------------------------------------------
Total dividends and distributions to
shareholders................................. (2,210,000) (1,700,000) (885,000) (6,340,000) (114,929)
--------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold...................... 415,378,253 22,230,068 22,925,314 70,702,486 13,740,334
Proceeds from shares issued for reinvestment of
dividends and distributions.................. 2,210,000 1,700,000 885,000 6,340,000 114,929
Cost of shares repurchased..................... (418,035,564) (14,423,490) (12,442,153) (52,574,843) (4,768,369)
--------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from capital share transactions.............. (447,311) 9,506,578 11,368,161 24,467,643 9,086,894
--------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS................... 1,633,357 15,216,457 13,605,762 26,370,930 11,037,561
NET ASSETS:
Beginning of year.............................. 89,097,836 44,542,587 15,868,758 55,802,737 10,477,519
--------------------------------------------------------------------
End of year.................................... $ 90,731,193 $59,759,044 $29,474,520 $82,173,667 $21,515,080
====================================================================
---------------
Undistributed net investment income (loss)..... $ 4,234,947 $ 3,620,109 $ 1,219,884 $ 7,410,940 $1,431,913
====================================================================
Shares issued and repurchased:
Sold........................................... 39,465,595 2,131,775 2,218,395 6,846,915 1,299,782
Issued in reinvestment of dividends and
distributions................................ 214,355 170,000 90,306 648,925 11,873
Repurchased.................................... (39,709,537) (1,407,509) (1,212,881) (5,097,408) (480,433)
--------------------------------------------------------------------
Net increase (decrease)........................ (29,587) 894,266 1,095,820 2,398,432 831,222
====================================================================
</TABLE>
See Notes to Financial Statements
- ---------------------
100
<PAGE> 234
(UNAUDITED)
<TABLE>
<CAPTION>
BALANCED/ GROWTH/
PHOENIX PHOENIX INTERNATIONAL
INVESTMENT ASSET GROWTH- VENTURE ALLIANCE INVESTMENT PROVIDENT GLOBAL DIVERSIFIED
COUNSEL ALLOCATION INCOME VALUE GROWTH COUNSEL GROWTH EQUITIES EQUITIES
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 406,341 $ 5,320,722 $ 1,675,560 $ 904,551 $ 481,532 $ 1,263,637 $ (45,258) $ 1,450,200 $ 214,789
875,469 6,792,943 6,546,892 1,620,396 13,305,824 19,383,952 240,218 5,003,696 (585,776)
-- 37,040 -- -- 47,744 -- -- (524,955) --
-- -- 76 -- -- 701 -- 720,956 (506,494)
1,971,928 20,689,780 26,098,737 15,272,123 21,063,685 14,865,880 25,016,207 13,392,395 1,120,932
-- -- -- -- -- (21) -- 15,377 1,810,094
-- 94,950 -- -- 96,750 -- -- 182,708 --
---------------------------------------------------------------------------------------------------------------------------
3,253,738 32,935,435 34,321,265 17,797,070 34,995,535 35,514,149 25,211,167 20,240,377 2,053,545
---------------------------------------------------------------------------------------------------------------------------
(11,237) (2,240,000) (875,000) (23,311) (155,000) (1,450,000) (200,000) (855,000) (121,869)
-- (425,000) -- -- (725,000) -- -- (3,190,000) --
---------------------------------------------------------------------------------------------------------------------------
(11,237) (2,665,000) (875,000) (23,311) (880,000) (1,450,000) (200,000) (4,045,000) (121,869)
---------------------------------------------------------------------------------------------------------------------------
30,928,111 91,078,058 79,200,929 164,118,300 168,074,086 45,890,799 46,200,686 79,044,610 58,139,793
11,237 2,665,000 875,000 23,311 880,000 1,450,000 200,000 4,045,000 121,869
(3,269,069) (31,032,947) (27,140,302) (31,455,895) (88,413,178) (35,688,009) (31,477,920) (70,291,038) (23,670,269)
---------------------------------------------------------------------------------------------------------------------------
27,670,279 62,710,111 52,935,627 132,685,716 80,540,908 11,652,790 14,922,766 12,798,572 34,591,393
---------------------------------------------------------------------------------------------------------------------------
30,912,780 92,980,546 86,381,892 150,459,475 114,656,443 45,716,939 39,933,933 28,993,949 36,523,069
1,515,755 106,855,844 84,899,181 4,448,522 53,213,284 104,193,544 75,342,106 136,757,748 12,437,590
---------------------------------------------------------------------------------------------------------------------------
$32,428,535 $199,836,390 $171,281,073 $154,907,997 $167,869,727 $149,910,483 $115,276,039 $165,751,697 $48,960,659
============================================================================================================================
$ 399,630 $ 5,029,483 $ 1,673,393 $ 889,057 $ 477,396 $ 1,261,039 $ -- $ 1,468,646 $ (346,916)
============================================================================================================================
2,742,183 7,788,903 6,452,877 13,646,177 12,084,699 4,046,435 3,971,874 6,436,345 6,011,154
1,132 243,157 77,502 2,359 76,126 135,387 18,536 357,648 12,721
(296,843) (2,699,219) (2,260,341) (2,599,805) (6,421,749) (3,175,785) (2,684,472) (5,815,859) (2,470,598)
---------------------------------------------------------------------------------------------------------------------------
2,446,472 5,332,841 4,270,038 11,048,731 5,739,076 1,006,037 1,305,938 978,134 3,553,277
============================================================================================================================
</TABLE>
---------------------
101
<PAGE> 235
- ---------------------
SUNAMERICA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION: SunAmerica Series Trust
("the Trust"), organized as a Massachusetts business trust on September 11,
1992, is an open-end management investment company. It was established to
provide a funding medium for certain annuity contracts issued by Variable
Separate Account (the "Account"), a separate account of Anchor National Life
Insurance Company ("Life Company"), organized under the laws of the state of
Arizona.
The Trust issues 18 separate series of shares ("Portfolios"), each of which
represents a separate managed portfolio of securities with its own investment
objectives. The Board of Trustees may establish additional series in the future.
The current Portfolios are the Cash Management Portfolio, Global Bond Portfolio,
Corporate Bond Portfolio (formerly, the Fixed Income Portfolio), High-Yield Bond
Portfolio, Worldwide High Income Portfolio, SunAmerica Balanced Portfolio,
Balanced/Phoenix Investment Counsel Portfolio, Asset Allocation Portfolio,
Utility Portfolio, Growth-Income Portfolio, Federated Value Portfolio, Venture
Value Portfolio, Alliance Growth Portfolio, Growth/Phoenix Investment Counsel
Portfolio, Provident Growth Portfolio, Global Equities Portfolio, International
Diversified Equities Portfolio and Aggressive Growth Portfolio. Effective June
3, 1996 the Fixed Income Portfolio changed its name to the Corporate Bond
Portfolio. All shares may be purchased or redeemed by the Account at net asset
value without any sales or redemption charge.
The investment objectives for each portfolio are as follows:
The Cash Management Portfolio seeks high current yield while preserving capital
by investing in a diversified selection of money market instruments.
The Global Bond Portfolio seeks a high total return, emphasizing current income
and, to a lesser extent, providing opportunities for capital appreciation,
through investment in high quality fixed-income securities of U.S. and foreign
issuers and through transactions in foreign currencies.
The Corporate Bond Portfolio seeks a high total return with only moderate price
risk by investing primarily in investment grade fixed-income securities.
The High-Yield Bond Portfolio seeks a high level of current income and
secondarily seeks capital appreciation by investing primarily in intermediate
and long-term corporate obligations, with emphasis on higher-yielding,
higher-risk, lower-rated or unrated securities.
The Worldwide High Income Portfolio seeks high current income and, secondarily,
capital appreciation, by investing primarily in a portfolio of high-yielding
fixed-income securities of issuers located throughout the world.
The SunAmerica Balanced Portfolio seeks to conserve principal by maintaining at
all times a balanced portfolio of stocks and bonds.
The Balanced/Phoenix Investment Counsel Portfolio seeks reasonable income,
long-term capital growth and conservation of capital by investing primarily in
common stocks and fixed-income securities, with an emphasis on income-producing
securities which appear to have some potential for capital enhancement.
The Asset Allocation Portfolio seeks high total return (including income and
capital gains) consistent with preservation of capital over the long-term
through a diversified portfolio that can include common stocks and other
securities having common stock characteristics, bonds and other intermediate and
long-term fixed-income securities and money market instruments (debt securities
maturing in one year or less) in any combination.
The Utility Portfolio seeks high current income and moderate capital
appreciation by investing primarily in the equity and debt securities of utility
companies.
The Growth-Income Portfolio seeks growth of capital and income by investing
primarily in common stocks or securities which demonstrate the potential for
appreciation and/or dividends.
The Federated Value Portfolio seeks growth of capital and income by investing
primarily in the securities of high quality companies.
The Venture Value Portfolio seeks to achieve growth of capital by investing
primarily in common stocks.
The Alliance Growth, Growth/Phoenix Investment Counsel and Provident Growth
Portfolios each seeks long-term growth of capital by investing primarily in
common stocks or securities with common stock characteristics which demonstrate
the potential for appreciation.
The Global Equities Portfolio seeks long-term growth of capital through
investment primarily in common stocks or securities of U.S. and foreign issuers
with common stock characteristics which demonstrate the potential for
appreciation and through transactions in foreign currencies.
- ---------------------
102
<PAGE> 236
(UNAUDITED)
The International Diversified Equities Portfolio seeks long-term capital
appreciation by investing in accordance with country weightings determined by
the Subadviser in common stocks of foreign issuers which, in the aggregate,
replicate broad country indices.
The Aggressive Growth Portfolio seeks long-term growth of capital through
investment primarily in equity securities of small capitalization growth
companies.
In the opinion of management of the Trust, the accompanying financial
statements contain all normal and recurring adjustments necessary for the fair
presentation of the financial position of the Trust at November 30, 1996, and
the results of its operations, the changes in its net assets and its financial
highlights for the period then ended.
2. SIGNIFICANT ACCOUNTING POLICIES: Following is a summary of significant
accounting policies consistently followed by the Trust in the preparation of its
financial statements.
SECURITY VALUATIONS: Stocks are stated at value based upon closing sales
prices reported on recognized securities exchanges or, for listed securities
having no sales reported and for unlisted securities, upon last-reported bid
prices. Nonconvertible bonds, debentures, and other long-term debt securities
are valued at prices obtained for the day of valuation from a bond pricing
service of a major dealer in bonds when such prices are available; however, in
circumstances where the investment adviser deems it appropriate to do so, an
over-the-counter or exchange quotation at the mean of representative bid or
asked prices may be used. Securities traded primarily on securities exchanges
outside the United States are valued at the last sale price on such exchanges on
the day of valuation, or if there is no sale on the day of valuation, at the
last reported bid price. If a security's price is available from more than one
foreign exchange, a portfolio uses the exchange that is the primary market for
the security. Short-term securities with original or remaining maturities in
excess of 60 days are valued at the mean of their quoted bid and ask prices.
Short-term securities with 60 days or less to maturity are amortized to maturity
based on their cost to the Trust if acquired within 60 days of maturity or, if
already held by the Trust on the 60th day, are amortized to maturity based on
the value determined on the 61st day. Securities for which quotations are not
readily available are valued at fair value as determined in good faith under the
direction of the Trust's Trustees.
REPURCHASE AGREEMENTS: The Trust's 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 assure that the value,
including accrued interest, is at least equal to the repurchase price. In the
event of default of the obligation to repurchase, the Trust 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 Trust may be delayed or limited.
FOREIGN CURRENCY TRANSLATION: The books and records of the Trust are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars at published rates on the following basis:
(i) market value of investment securities, other assets and liabilities at
the prevailing rate of exchange at the valuation date.
(ii) purchases and sales of investment securities, income and expenses at the
rate of exchange prevailing on the respective dates of such transactions.
Assets and liabilities denominated in foreign currencies and commitments under
forward foreign currency contracts are translated into U.S. dollars at the mean
of the quoted bid and asked prices of such currencies against the U.S. dollar.
Purchases and sales of portfolio securities are translated at the rate of
exchange prevailing when such securities were acquired or sold. Income and
expenses are translated at rates of exchange prevailing when earned or incurred.
The Trust 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. The Trust 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 gain (loss) on other assets and liabilities and
change in unrealized foreign exchange gain (loss) on other assets and
liabilities include realized foreign exchange gains and losses from currency
gains or losses realized between the trade and settlement dates of securities
transactions, dividends received, the difference between the amounts of
interest, discount and foreign withholding taxes recorded on the Trust'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 the other assets
and liabilities arising as a result of changes in the exchange rate.
FUTURES CONTRACTS: A futures contract is an agreement between two parties to
buy and sell a security at a set price on a future date. Upon entering into such
a contract the Trust is required to pledge to the broker an amount of cash or
U.S. government securities equal to the minimum "initial margin" requirements of
the exchange on which the futures contract is traded. The contract amount
reflects the extent of a portfolio's exposure in these financial instruments. A
portfolio's participation in the futures markets involves certain risks,
including imperfect correlation between movements in the price of futures
contracts and movements in the price of the securities hedged or used for cover.
The Trust's activities in the futures contracts are conducted through regulated
exchanges which do not result in counterparty credit risks. Pursuant to a
contract, the portfolios agree to receive from or pay to the broker an amount of
cash equal to the daily fluctuation in value of the contract. Such receipts or
payments are known as "variation margin" and are recorded by the portfolios as
unrealized
---------------------
103
<PAGE> 237
(UNAUDITED)
appreciation or depreciation. When a contract is closed, the portfolios record a
realized gain or loss equal to the difference between the value of the contract
at the time it was opened and the value at the time it was closed.
SECURITIES TRANSACTIONS, DIVIDENDS, INVESTMENT INCOME AND EXPENSES: As is
customary in the mutual fund industry, securities transactions are accounted for
on the first business day following the trade date. Interest income is accrued
daily except when collection is not expected. Dividend income and distributions
to shareholders are recorded on the ex-dividend date except for certain
dividends from foreign securities, which are recorded as soon as the Trust is
informed after the ex-dividend date. The Trust amortizes premiums and accretes
discounts on fixed income securities, as well as those original issue discounts
for which amortization is required for federal income tax purposes; gains and
losses realized upon the sale of such securities are based on their identified
cost. Portfolios which earn foreign income and capital gains may be subject to
foreign withholding taxes at various rates.
The Fund records 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. Dividends and distributions which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains. To the extent
distributions exceed current and accumulated earnings and profits for federal
income tax purposes, they are reported as distributions of paid-in capital.
Common expenses incurred by the Trust are allocated among the series based
upon relative net assets. In all other respects, expenses are charged to each
series as incurred on a specific identification basis.
USES OF ESTIMATES IN FINANCIAL STATEMENT PREPARATION: 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.
STATEMENT OF POSITION 93-2: In accordance with the requirements of Statement
of Position 93-2 Determination, Disclosure, and Financial Statement Presentation
of Income, Capital Gain, and Return of Capital Distributions by Investment
Companies permanent book-tax differences relating to shareholder distributions
have been reclassified to paid-in capital. Net investment income/loss, net
realized gain/loss, and net assets were not affected by this change.
3. JOINT REPURCHASE AGREEMENT ACCOUNT: The Cash Management, High-Yield Bond,
SunAmerica Balanced and Aggressive Growth Portfolios, 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. As of November 30, 1996, the Cash Management, High-Yield
Bond, SunAmerica Balanced and Aggressive Growth Portfolios had a 6.5%, 4.2%,
1.9% and 3.3%, undivided interest, respectively, which represented $5,615,000,
$3,610,000, $1,605,000 and $2,812,000, respectively, in principal amount in a
repurchase agreement in the joint account. As of such date, each repurchase
agreement in the joint account and the collateral therefore was as follows:
Yamaichi International (America), Inc. Repurchase Agreement, 5.60% dated
11/30/96, in the principal amount of $86,443,000 repurchase price $86,483,340
due 12/02/96 collateralized by $50,000,000 U.S. Treasury Bills due 1/9/97;
$25,910,000 U.S. Treasury Notes 7.50% due 12/31/96 and $11,443,000 U.S. Treasury
Bonds 9.875% due 11/15/15, approximate aggregate value $88,173,038.
4. FEDERAL INCOME TAXES: The Trust intends 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.
- ---------------------
104
<PAGE> 238
(UNAUDITED)
The amounts of aggregate unrealized gain (loss) and the cost of investment
securities, including short-term securities, were as follows:
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE UNREALIZED
UNREALIZED UNREALIZED GAIN/(LOSS) COST OF
GAIN (LOSS) NET INVESTMENTS
----------------------------------------------------
<S> <C> <C> <C> <C>
Cash Management................................................. $ 2,919 $ (9,336) $ (6,417) $ 91,021,216
Global Bond..................................................... 2,306,376 (265,691) 2,040,685 66,078,371
Corporate Bond.................................................. 1,240,281 (81,162) 1,159,119 35,678,831
High-Yield Bond................................................. 5,419,124 (525,843) 4,893,281 109,030,658
Worldwide High Income........................................... 3,175,928 (274,600) 2,901,328 45,982,637
SunAmerica Balanced............................................. 934,732 (111,924) 822,808 9,164,380
Balanced/Phoenix Investment Counsel............................. 6,114,677 (248,548) 5,866,129 69,693,096
Asset Allocation................................................ 38,206,055 (2,201,911) 36,004,144 301,144,739
Utility......................................................... 326,357 (38,666) 287,691 6,136,436
Growth-Income................................................... 67,923,299 (851,198) 67,072,101 257,659,579
Federated Value................................................. 1,267,063 (70,954) 1,196,109 11,119,437
Venture Value................................................... 92,780,447 (1,660,947) 91,119,500 425,361,031
Alliance Growth................................................. 67,978,757 (1,151,940) 66,826,817 313,547,697
Growth/Phoenix Investment Counsel............................... 29,005,372 (1,676,399) 27,328,973 158,981,950
Provident Growth................................................ 46,078,501 (743,008) 45,335,493 116,201,171
Global Equities................................................. 36,608,891 (6,218,894) 30,389,997 219,596,710
International Diversified Equities.............................. 13,171,521 (6,798,840) 6,372,681 151,854,179
Aggressive Growth............................................... 3,632,439 (541,226) 3,091,213 31,810,867
</TABLE>
5. MANAGEMENT OF THE TRUST: SunAmerica Asset Management Corp. ("SAAMCo" or the
"Adviser"), an indirect wholly owned subsidiary of the Life Company, serves as
investment adviser for all the portfolios of the Trust. The Trust, on behalf of
each Portfolio, entered into an Investment Advisory and Management Agreement
(the "Agreement") with SAAMCo to handle the Trust's day-to-day affairs. It is
the responsibility of the Adviser and, for certain Portfolios pursuant to
Subadvisory Agreements described below, the subadvisers, to make investment
decisions for the Portfolios and to place the purchase and sale orders for the
Portfolio transactions. Such orders may be directed to any broker including, in
the manner and to the extent permitted by applicable law, affiliates of the
Adviser or a subadviser. The Agreement provides that SAAMCo shall administer the
Trust's business affairs; furnish offices, necessary facilities and equipment;
provide clerical, bookkeeping and administrative services; and permit any of its
officers or employees to serve, without compensation, as trustees or officers of
the Trust, if duly elected to such positions. There is no subadviser for the
Cash Management, High-Yield Bond, SunAmerica Balanced and Aggressive Growth
Portfolios, and SAAMCo, therefore performs all investment advisory services for
these Portfolios. The term "Assets" means the average daily net assets of the
portfolios.
---------------------
105
<PAGE> 239
(UNAUDITED)
The Trust pays SAAMCo a monthly fee calculated at the following annual
percentages of each Portfolio's assets:
<TABLE>
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ---------------------------- ---------------------------------------
<S> <C> <C>
Cash Management $0--$100 million 0.55%
greater than $100 million 0.50%
greater than $300 million 0.45%
Global Bond- $0--$ 50 million 0.75%
Asset Allocation greater than $ 50 million 0.65%
greater than $150 million 0.60%
greater than $250 million 0.55%
Corporate Bond $0--$ 50 million 0.70%
greater than $ 50 million 0.60%
greater than $150 million 0.55%
greater than $250 million 0.50%
High-Yield Bond $0--$ 50 million 0.70%
greater than $ 50 million 0.65%
greater than $150 million 0.60%
greater than $250 million 0.55%
Worldwide High greater than $ 0 1.00%
Income-International
Diversified Equities
SunAmerica Balanced- $0--$ 50 million 0.70%
Balanced/Phoenix greater than $ 50 million 0.65%
Investment Counsel- greater than $150 million 0.60%
Growth-Income- greater than $300 million 0.55%
Alliance Growth- greater than $500 million 0.50%
Growth/Phoenix
Investment Counsel
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ---------------------------- ---------------------------------------
<S> <C> <C>
Utility-Federated Value $0--$150 million 0.70%
greater than $150 million 0.60%
greater than $500 million 0.50%
Venture Value $0--$100 million 0.80%
greater than $100 million 0.75%
greater than $500 million 0.70%
Provident Growth $0--$ 50 million 0.85%
greater than $ 50 million 0.80%
greater than $150 million 0.70%
greater than $250 million 0.65%
greater than $350 million 0.60%
Global Equities $0--$ 50 million 0.90%
greater than $ 50 million 0.80%
greater than $150 million 0.70%
greater than $300 million 0.65%
Aggressive Growth $0--$100 million 0.75%
greater than $100 million 0.675%
greater than $250 million 0.625%
greater than $500 million 0.60%
</TABLE>
The organizations described below act as subadvisers to the Trust and certain
of its Portfolios pursuant to Subadvisory Agreements with SAAMCo. Under the
Subadvisory Agreements, the subadvisers manage the investment and reinvestment
of the assets of the respective Portfolios for which they are responsible. Each
of the subadvisers is independent of SAAMCo and discharges its responsibilities
subject to the policies of the Trustees and the oversight and supervision of
SAAMCo, which pays the subadvisers' fees.
Goldman Sachs Asset Management International, an affiliate of Goldman Sachs &
Co., serves as subadviser for the Global Bond Portfolio; Goldman Sachs Asset
Management, a separate operating division of Goldman Sachs & Co., serves as
subadviser for the Asset Allocation Portfolio; Federated Investment Counseling
serves as a subadviser for the Corporate Bond, Federated Value and Utility
Portfolios; Morgan Stanley Asset Management, Inc., a wholly owned subsidiary of
Morgan Stanley Group, Inc., serves as subadviser for the International
Diversified Equities and Worldwide High Income Portfolios; Phoenix Investment
Counsel, Inc. serves as subadviser for the Growth/Phoenix Investment Counsel and
Balanced/Phoenix Investment Counsel Portfolios; Alliance Capital Management L.P.
serves as a subadviser for the Global Equities, Alliance Growth and
Growth-Income Portfolios; Davis Selected Advisers L.P. serves as subadviser for
the Venture Value Portfolio; and Provident Investment Counsel serves as
subadviser for the Provident Growth Portfolio. Effective June 3, 1996 Goldman
Sachs Asset Management resigned their role as subadviser and Federated
Investment Counseling assumed the role as subadviser for the Corporate Bond
Portfolio.
- ---------------------
106
<PAGE> 240
(UNAUDITED)
The portion of the investment advisory fees received by SAAMCo which are paid
to subadvisers are as follows:
<TABLE>
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ---------------------------- ---------------------------------------
<S> <C> <C>
Global Bond $0--$ 50 million 0.40%
Asset Allocation greater than $ 50 million 0.30%
greater than $150 million 0.25%
greater than $250 million 0.20%
Corporate Bond $0--$ 25 million 0.30%
greater than $ 25 million 0.25%
greater than $100 million 0.20%
greater than $150 million 0.15%
Worldwide High Income- $0--$350 million 0.65%
International Diversified greater than $350 million 0.60%
Equities
Balanced/Phoenix $0--$ 50 million 0.35%
Investment Counsel- greater than $ 50 million 0.30%
Growth-Income- greater than $150 million 0.25%
Alliance Growth- greater than $300 million 0.20%
Growth/Phoenix greater than $500 million 0.15%
Investment Counsel
Utility-Federated Value $0--$ 20 million 0.55%
greater than $ 20 million 0.35%
greater than $ 50 million 0.25%
greater than $150 million 0.20%
greater than $500 million 0.15%
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ---------------------------- ---------------------------------------
<S> <C> <C>
Venture Value $0--$100 million 0.45%
greater than $100 million 0.40%
greater than $500 million 0.35%
Provident Growth $0--$ 50 million 0.50%
greater than $ 50 million 0.45%
greater than $150 million 0.35%
greater than $250 million 0.30%
greater than $350 million 0.25%
Global Equities $0--$ 50 million 0.50%
greater than $ 50 million 0.40%
greater than $150 million 0.30%
greater than $300 million 0.25%
</TABLE>
For certain Portfolios, the Adviser has voluntarily agreed to waive fees or
reimburse expenses, if necessary, to keep annual operating expenses at or below
the lesser of the maximum allowable by applicable state expense limitations or
the following percentages of each of the following Portfolio's average net
assets: Utility Portfolio -- 1.05%, SunAmerica Balanced Portfolio -- 1.00%,
Federated Value Portfolio -- 1.05% and Aggressive Growth Portfolio -- 1.05%. The
Adviser also may voluntarily waive or reimburse additional amounts to increase
the investment return to a Portfolio's investors. The Adviser may terminate all
such waivers and/or reimbursements at any time. Further, effective June 3, 1996,
any waivers or reimbursements made by the Adviser with respect to a Portfolio
are subject to recoupment from that Portfolio within the following two years,
provided that the Portfolio is able to effect such payment to the Adviser and
remain in compliance with the foregoing expense limitations.
The impact of such expense reimbursements is reflected in the Statement of
Operations under the caption "expenses reimbursed by the investment adviser."
6. ORGANIZATIONAL EXPENSES: Costs incurred by the Adviser in connection with
the organization and registration of the Trust amounted to $204,704.
Organizational expenses will be amortized on a straight line basis by each
portfolio of the Trust over the period of benefit not to exceed 60 months from
the date the respective portfolio commenced operations.
7. PURCHASES AND SALES OF SECURITIES: Information with respect to purchases and
sales of long-term securities for the year ended November 30, 1996, was as
follows:
<TABLE>
<CAPTION>
CASH GLOBAL CORPORATE HIGH-YIELD WORLDWIDE SUNAMERICA
MANAGEMENT BOND BOND BOND HIGH INCOME BALANCED
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Purchases of portfolio
securities............... $ -- $119,936,743 $116,246,365 $127,757,620 $77,341,010 $9,249,594
Sales of portfolio
securities............... -- 118,839,853 107,922,252 96,920,503 58,496,629 1,691,653
U.S. government securities
included above were as
follows:
Purchases of U.S.
government securities.... -- 31,143,070 83,683,505 -- -- 1,014,326
Sales of U.S. government
securities............... -- 22,828,289 90,634,049 -- -- --
</TABLE>
---------------------
107
<PAGE> 241
(UNAUDITED)
<TABLE>
<CAPTION>
BALANCED/PHOENIX
INVESTMENT ASSET GROWTH- FEDERATED VENTURE
COUNSEL ALLOCATION UTILITY INCOME VALUE VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Purchases of portfolio
securities............... $115,506,321 $560,709,314 $6,568,389 $259,614,657 $11,939,399 $307,784,901
Sales of portfolio
securities............... 84,745,767 473,924,819 799,824 180,419,109 1,748,311 61,080,932
U.S. government securities
included above were as
follows:
Purchases of U.S.
government securities.... 42,005,493 362,083,040 -- -- -- --
Sales of U.S. government
securities............... 31,216,216 352,430,512 -- -- -- --
</TABLE>
<TABLE>
<CAPTION>
GROWTH/PHOENIX INTERNATIONAL
ALLIANCE INVESTMENT PROVIDENT GLOBAL DIVERSIFIED AGGRESSIVE
GROWTH COUNSEL GROWTH EQUITIES EQUITIES GROWTH
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Purchases of portfolio
securities............... $438,376,297 $234,109,325 $96,172,952 $184,810,018 $146,866,299 $36,231,547
Sales of portfolio
securities............... 286,378,463 883,193,972 78,049,379 136,312,942 50,986,307 6,526,778
U.S. government securities
included above were as
follows:
Purchases of U.S.
government securities.... -- -- -- -- -- --
Sales of U.S. government
securities............... -- -- -- -- -- --
</TABLE>
8. TRANSACTIONS WITH AFFILIATES: The following portfolios incurred brokerage
commissions with an affiliated broker:
<TABLE>
<CAPTION>
GOLDMAN
SACHS & CO.
-----------
<S> <C>
Asset Allocation Portfolio................................................. $16,363
</TABLE>
9. FINANCIAL INVESTMENTS WITH OFF-BALANCE SHEET RISK: At November 30, 1996, the
Global Bond, Global Equities and International Diversified Equities Portfolios
had outstanding forward foreign currency exchange contracts ("forward
contracts") in order to hedge against changes in future foreign exchange rates
and enhance return. Forward contracts involve elements of market risk in excess
of the amount reflected in the Statement of Assets and Liabilities. The Trust
bears the risk of an unfavorable change in the foreign exchange rate underlying
the forward contract.
10. COMMITMENTS AND CONTINGENCIES: The High-Yield Bond Portfolio has
established an uncommitted line of credit with State Street Bank and Trust
Company with interest payable at Federal Funds rate plus 125 basis points.
Borrowings under the line of credit will commence when the Fund's cash shortfall
exceeds $100,000. The High-Yield Bond Portfolio periodically utilized the
uncommitted line of credit and incurred an interest expense of $7,414 for the
year ended November 30, 1996.
- ---------------------
108
<PAGE> 242
- ---------------------
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS*
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET
REALIZED
NET & TOTAL DIVIDENDS DIVIDENDS NET
ASSET NET UNREALIZED FROM DECLARED FROM NET ASSET
VALUE INVEST- GAIN INVEST- FROM NET REALIZED VALUE
PERIOD BEGINNING MENT (LOSS) ON MENT INVESTMENT GAIN ON END OF
ENDED OF PERIOD INCOME** INVESTMENTS OPERATIONS INCOME INVESTMENTS PERIOD
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Cash Management Portfolio
2/9/93-
11/30/93 $ 10.00 $ 0.19 $ 0.01 $ 0.20 $ -- $ -- $ 10.20
11/30/94 10.20 0.38 (0.02) 0.36 (0.09) -- 10.47
11/30/95 10.47 0.56 0.01 0.57 (0.34) -- 10.70
11/30/96# 10.70 0.53 (0.02) 0.51 (0.45) -- 10.76
Global Bond Portfolio
7/1/93-
11/30/93 10.00 0.13 0.17 0.30 -- -- 10.30
11/30/94 10.30 0.53 (0.86) (0.33) (0.09) (0.05) 9.83
11/30/95 9.83 0.60 0.97 1.57 (0.38) -- 11.02
11/30/96# 11.02 0.59 0.54 1.13 (0.75) -- 11.40
Corporate Bond Portfolio
7/1/93-
11/30/93 10.00 0.14 0.05 0.19 -- -- 10.19
11/30/94 10.19 0.52 (0.87) (0.35) (0.05) (0.04) 9.75
11/30/95 9.75 0.60 1.00 1.60 (0.53) -- 10.82
11/30/96# 10.82 0.65 0.03 0.68 (0.41) -- 11.09
High-Yield Bond Portfolio
2/9/93-
11/30/93 10.00 0.76 0.36 1.12 -- -- 11.12
11/30/94 11.12 1.20 (1.65) (0.45) (0.29) (0.06) 10.32
11/30/95 10.32 1.11 0.12 1.23 (1.02) -- 10.53
11/30/96# 10.53 0.98 0.48 1.46 (0.95) -- 11.04
Worldwide High Income Portfolio
10/28/94-
11/30/94 10.00 0.04 (0.09) (0.05) -- -- 9.95
11/30/95 9.95 1.10 0.47 1.57 (0.10) -- 11.42
11/30/96# 11.42 1.25 1.60 2.85 (0.87) (0.05) 13.35
SunAmerica Balanced Portfolio
6/3/96-
11/30/96# 10.00 0.09 1.04 1.13 -- -- 11.13
<CAPTION>
RATIO OF
RATIO OF INVESTMENT
NET EXPENSES INCOME
ASSETS TO TO AVERAGE
END OF AVERAGE AVERAGE COMMISSION
PERIOD TOTAL PERIOD NET NET PORTFOLIO PER
ENDED RETURN*** (000'S) ASSETS ASSETS TURNOVER SHARE@
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Cash Management Portfolio
2/9/93-
11/30/93 2.00% $ 24,603 0.71%+++ 2.53%+++ --% NA
11/30/94 3.51 89,098 0.70++ 3.73++ -- NA
11/30/95 5.59 90,731 0.67 5.32 -- NA
11/30/96# 4.92 91,247 0.62 4.90 -- NA
Global Bond Portfolio
7/1/93-
11/30/93 3.00 25,010 1.35+++ 3.56+++ 84 NA
11/30/94 (3.18) 44,543 1.06 5.29 347 NA
11/30/95 16.40 59,759 0.95 5.89 339 NA
11/30/96# 10.94 68,221 0.89 5.44 223 NA
Corporate Bond Portfolio
7/1/93-
11/30/93 1.90 11,667 0.94+++ 3.92+++ 208 NA
11/30/94 (3.41) 15,869 0.94++ 5.21++ 419 NA
11/30/95 17.01 29,475 0.96++ 5.93++ 412 NA
11/30/96# 6.51 37,207 0.97 6.11 338 NA
High-Yield Bond Portfolio
2/9/93-
11/30/93 11.20 41,851 0.94+++ 9.43+++ 229 NA
11/30/94 (4.26) 55,803 0.92++ 11.07++ 225 NA
11/30/95 12.64 82,174 0.80 10.80 174 NA
11/30/96# 14.86 113,229 0.77 9.41 107 NA
Worldwide High Income Portfolio
10/28/94-
11/30/94 (0.50) 10,478 1.60+++ 4.48+++ 2 NA
11/30/95 16.02 21,515 1.30 10.46 176 NA
11/30/96# 26.87 49,204 1.16 10.50 177 NA
SunAmerica Balanced Portfolio
6/3/96-
11/30/96# 11.30 10,224 1.00+++ 1.92+++ 35 .0600
</TABLE>
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of Anchor
National Life Insurance Company and First SunAmerica Life Insurance
Company. If such expenses had been included, total return would have
been lower for each period presented.
@ 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.
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995 and 1996, the
investment adviser waived a portion of or all fees and assumed a portion
of or all expenses for the portfolios. If all fees and expenses had been
incurred by the portfolios, the ratio of expenses to average net assets
and the ratio of net investment income to average net assets would have
been as follows:
<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME
------------------------------- ----------------------------------
1993 1994 1995 1996 1993 1994 1995 1996
------------------------------- ----------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Cash Management Portfolio.............................. 1.10% 0.78% 0.67% 0.62% 2.14% 3.65% 5.32% 4.90%
Global Bond Portfolio.................................. 1.81 1.06 0.95 0.89 3.10 5.29 5.89 5.44
Corporate Bond Portfolio............................... 1.81 1.09 0.97 0.97 3.05 5.06 5.92 6.11
High-Yield Bond Portfolio.............................. 1.29 0.93 0.80 0.77 9.08 11.06 10.80 9.41
Worldwide High Income Portfolio........................ -- 2.26 1.30 1.16 -- 3.82 10.46 10.50
SunAmerica Balanced Portfolio.......................... -- -- -- 1.43 -- -- -- 1.49
</TABLE>
# Unaudited
See Notes to Financial Statements
---------------------
109
<PAGE> 243
- ---------------------
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS* -- (CONTINUED)
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET
REALIZED
NET NET & TOTAL DIVIDENDS DIVIDENDS NET
ASSET INVEST- UNREALIZED FROM DECLARED FROM NET ASSET
VALUE MENT GAIN INVEST- FROM NET REALIZED VALUE
PERIOD BEGINNING INCOME (LOSS) ON MENT INVESTMENT GAIN ON END OF
ENDED OF PERIOD (LOSS)** INVESTMENTS OPERATIONS INCOME INVESTMENTS PERIOD
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balanced/Phoenix Investment Counsel Portfolio
10/28/94-
11/30/94 $ 10.00 $ 0.04 $ (0.08) $ (0.04) $ -- $ -- $ 9.96
11/30/95 9.96 0.34 2.23 2.57 (0.05) -- 12.48
11/30/96# 12.48 0.34 1.31 1.65 (0.19) (0.31) 13.63
Asset Allocation Portfolio
7/1/93-
11/30/93 10.00 0.08 0.28 0.36 -- -- 10.36
11/30/94 10.36 0.29 (0.25) 0.04 (0.05) (0.03) 10.32
11/30/95 10.32 0.42 2.24 2.66 (0.20) (0.04) 12.74
11/30/96# 12.74 0.48 2.00 2.48 (0.31) (0.39) 14.52
Utility Portfolio
6/3/96-
11/30/96# 10.00 0.20 0.55 0.75 -- -- 10.75
Growth-Income Portfolio
2/9/93-
11/30/93 10.00 0.12 0.49 0.61 -- -- 10.61
11/30/94 10.61 0.13 (0.36) (0.23) (0.04) (0.01) 10.33
11/30/95 10.33 0.17 3.31 3.48 (0.10) -- 13.71
11/30/96# 13.71 0.18 3.48 3.66 (0.12) (0.43) 16.82
Federated Value Portfolio
6/3/96-
11/30/96# 10.00 0.06 1.02 1.08 -- -- 11.08
Venture Value Portfolio
10/28/94-
11/30/94 10.00 0.03 (0.25) (0.22) -- -- 9.78
11/30/95 9.78 0.17 3.55 3.72 (0.03) -- 13.47
11/30/96# 13.47 0.18 3.46 3.64 (0.09) (0.12) 16.90
<CAPTION>
RATIO OF
RATIO OF INVESTMENT
NET EXPENSES INCOME
ASSETS TO TO AVERAGE
END OF AVERAGE AVERAGE COMMISSION
PERIOD TOTAL PERIOD NET NET PORTFOLIO PER
ENDED RETURN*** (000'S) ASSETS ASSETS TURNOVER SHARE@
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balanced/Phoenix Investment Counsel Portfolio
10/28/94-
11/30/94 (0.40)% $ 1,516 1.00%+++ 4.25%+++ 10% NA
11/30/95 25.89 32,429 0.98++ 3.08++ 153 NA
11/30/96# 13.75 70,021 0.84 2.74 194 .0589
Asset Allocation Portfolio
7/1/93-
11/30/93 3.60 35,590 0.99+++ 2.33+++ 71 NA
11/30/94 0.30 106,856 0.94++ 2.71++ 152 NA
11/30/95 26.10 199,836 0.81 3.62 207 NA
11/30/96# 20.27 316,388 0.74 3.66 200 .0587
Utility Portfolio
6/3/96-
11/30/96# 7.50 6,299 1.05+++ 4.41+++ 20 .0439
Growth-Income Portfolio
2/9/93-
11/30/93 6.10 45,080 0.82+++ 1.59+++ 27 NA
11/30/94 (2.20) 84,899 0.81++ 1.26++ 59 NA
11/30/95 33.89 171,281 0.77 1.42 59 NA
11/30/96# 27.41 325,463 0.72 1.21 82 .0597
Federated Value Portfolio
6/3/96-
11/30/96# 10.80 12,460 1.05+++ 1.26+++ 26 .0520
Venture Value Portfolio
10/28/94-
11/30/94 (2.20) 4,449 1.10+++ 3.93+++ -- NA
11/30/95 38.17 154,908 1.00++ 1.43++ 18 NA
11/30/96# 27.44 516,413 0.85 1.21 22 .0598
</TABLE>
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of Anchor
National Life Insurance Company and First SunAmerica Life Insurance
Company. If such expenses had been included, total return would have
been lower for each period presented.
@ 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.
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995 and 1996, the
investment adviser waived a portion of or all fees and assumed a portion
of or all expenses for the portfolios. If all fees and expenses had been
incurred by the portfolios, the ratio of expenses to average net assets
and the ratio of net investment income to average net assets would have
been as follows:
<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME (LOSS)
------------------------------- -----------------------------------
1993 1994 1995 1996 1993 1994 1995 1996
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------------------- -----------------------------------
Balanced/Phoenix Investment Counsel Portfolio......... --% 6.82% 1.11% 0.84% --% (1.57)% 2.95% 2.74%
Asset Allocation Portfolio............................ 1.67 0.94 0.81 0.74 1.65 2.71 3.62 3.66
Utility Portfolio..................................... -- -- -- 1.93 -- -- -- 3.53
Growth-Income Portfolio............................... 1.40 0.89 0.77 0.72 1.01 1.18 1.42 1.21
Federated Value Portfolio............................. -- -- -- 1.57 -- -- -- 0.74
Venture Value Portfolio............................... -- 3.89 1.02 0.85 -- 1.14 1.41 1.21
</TABLE>
# Unaudited
See Notes to Financial Statements
- ---------------------
110
<PAGE> 244
- ---------------------
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS* -- (CONTINUED)
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET
REALIZED
NET NET & TOTAL DIVIDENDS DIVIDENDS NET
ASSET INVEST- UNREALIZED FROM DECLARED FROM NET ASSET
VALUE MENT GAIN INVEST- FROM NET REALIZED VALUE
PERIOD BEGINNING INCOME (LOSS) ON MENT INVESTMENT GAIN ON END OF
ENDED OF PERIOD (LOSS)** INVESTMENTS OPERATIONS INCOME INVESTMENTS PERIOD
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Alliance Growth Portfolio
2/9/93-
11/30/93 $ 10.00 $ 0.05 $ 0.87 $ 0.92 $ -- $ -- $ 10.92
11/30/94 10.92 0.04 (0.14) (0.10) (0.01) (0.17) 10.64
11/30/95 10.64 0.07 5.08 5.15 (0.03) (0.13) 15.63
11/30/96# 15.63 0.08 4.07 4.15 (0.04) (1.01) 18.73
Growth/Phoenix Investment Counsel Portfolio
2/9/93-
11/30/93 10.00 0.17 0.61 0.78 -- -- 10.78
11/30/94 10.78 0.16 (0.87) (0.71) (0.06) -- 10.01
11/30/95 10.01 0.12 3.14 3.26 (0.13) -- 13.14
11/30/96# 13.14 0.11 2.16 2.27 (0.11) (0.91) 14.39
Provident Growth Portfolio
2/9/93-
11/30/93 10.00 0.02 0.02 0.04 -- -- 10.04
11/30/94 10.04 0.03 (0.01) 0.02 (0.01) -- 10.05
11/30/95 10.05 (0.01) 3.09 3.08 (0.03) -- 13.10
11/30/96# 13.10 -- 2.61 2.61 -- -- 15.71
Global Equities Portfolio
2/9/93-
11/30/93 10.00 0.03 0.96 0.99 -- -- 10.99
11/30/94 10.99 0.05 0.71 0.76 (0.01) (0.07) 11.67
11/30/95 11.67 0.12 1.64 1.76 (0.08) (0.29) 13.06
11/30/96# 13.06 0.14 2.19 2.33 (0.14) (0.33) 14.92
International Diversified Equities Portfolio
10/28/94-
11/30/94 10.00 0.01 (0.23) (0.22) -- -- 9.78
11/30/95 9.78 0.07 0.38 0.45 (0.08) -- 10.15
11/30/96# 10.15 0.05 1.43 1.48 (0.26) -- 11.37
Aggressive Growth Portfolio
6/3/96-
11/30/96# 10.00 0.02 0.34 0.36 -- -- 10.36
<CAPTION>
RATIO OF
RATIO OF INVESTMENT
NET EXPENSES INCOME
ASSETS TO TO AVERAGE
END OF AVERAGE AVERAGE COMMISSION
PERIOD TOTAL PERIOD NET NET PORTFOLIO PER
ENDED RETURN*** (000'S) ASSETS ASSETS TURNOVER SHARE@
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Alliance Growth Portfolio
2/9/93-
11/30/93 9.20% $ 23,256 0.82%+++ 0.61%+++ 73% NA
11/30/94 (0.93) 53,213 0.82++ 0.37++ 146 NA
11/30/95 48.91 167,870 0.79 0.51 138 NA
11/30/96# 28.05 381,367 0.71 0.51 121 .0649
Growth/Phoenix Investment Counsel Portfolio
2/9/93-
11/30/93 7.80 65,032 0.82+++ 2.20+++ 165 NA
11/30/94 (6.64) 104,194 0.81++ 1.52++ 211 NA
11/30/95 32.92 149,910 0.76 1.01 229 NA
11/30/96# 18.40 186,368 0.74 0.82 164 .0534
Provident Growth Portfolio
2/9/93-
11/30/93 0.40 42,911 0.97+++ 0.32+++ 40 NA
11/30/94 0.19 75,342 0.96++ 0.31++ 54 NA
11/30/95 30.66 115,276 0.93 (0.05 52 NA
11/30/96# 19.92 160,073 0.90 (0.02 63 .0443
Global Equities Portfolio
2/9/93-
11/30/93 9.90 43,737 1.50+++ 0.38+++ 58 NA
11/30/94 6.87 136,758 1.28 0.42 67 NA
11/30/95 15.58 165,752 1.14 1.02 106 NA
11/30/96# 18.21 246,482 1.03 1.04 70 .0256
International Diversified Equities Portfolio
10/28/94-
11/30/94 (2.20) 12,438 1.70+++ 1.60+++ -- NA
11/30/95 4.63 48,961 1.70++ 0.76++ 52 NA
11/30/96# 14.85 157,008 1.59 0.47 53 .0023
Aggressive Growth Portfolio
6/3/96-
11/30/96# 3.60 35,124 1.05 0.46 40 .0600
</TABLE>
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of Anchor
National Life Insurance Company and First SunAmerica Life Insurance
Company. If such expenses had been included, total return would have
been lower for each period presented.
@ 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.
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995 and 1996, the
investment adviser waived a portion of or all fees and assumed a portion
of or all expenses for the portfolios. If all fees and expenses had been
incurred by the portfolios, the ratio of expenses to average net assets
and the ratio of net investment income to average net assets would have
been as follows:
<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME (LOSS)
------------------------------- -----------------------------------
1993 1994 1995 1996 1993 1994 1995 1996
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------------------- -----------------------------------
Alliance Growth Portfolio............................. 1.56% 0.96% 0.79% 0.71% (0.13)% 0.23% 0.51% 0.51%
Growth/Phoenix Investment Counsel Portfolio........... 1.28 0.87 0.76 0.74 1.74 1.46 1.01 0.82
Provident Growth Portfolio............................ 1.46 1.05 0.93 0.90 (0.17) 0.22 (0.05) (0.02)
Global Equities Portfolio............................. 2.52 1.28 1.14 1.03 (0.64) 0.42 1.02 1.04
International Diversified Equities Portfolio.......... -- 3.50 2.09 1.59 -- (0.20) 0.37 0.47
Aggressive Growth Portfolio........................... -- -- -- 1.09 -- -- -- 0.42
</TABLE>
# Unaudited
See Notes to Financial Statements
---------------------
111
<PAGE> 245
- ---------------------
SUNAMERICA SERIES TRUST
SHAREHOLDER INFORMATION (UNAUDITED)
Supplemental Proxy Information: A Special Meeting of the Shareholders of the
Sunamerica Series Trust Fixed Income Portfolio was held on June 3, 1996. The
following is a summary of each proposal presented and the total number of shares
voted:
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
PROPOSAL FAVOR OF AGAINST ABSTAINED
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Proposal to approve, with respect to the Portfolio,
the continuation of the Investment Advisory and
Management Agreement between SunAmerica Asset
Management Corp.
("SunAmerica") and the Trust on behalf of the
Portfolio. .. 2,855,767 47,706 155,340
2. Proposal to approve new Subadvisory Agreement between
SunAmerica and Federated Investment Counseling ("Fed-
erated") pursuant to which Federated will serve as
subadviser with respect to the assets of the
Portfolio. .......................................... 2,807,264 82,719 168,849
</TABLE>
- ---------------------
112
<PAGE> 246
PART C
OTHER INFORMATION
Item 24. Financial Statements and Exhibits.
(a) Financial Statements.
Set forth in Part B of Registrant's Statement of Additional
Information are the audited financial statements of SunAmerica
Series Trust with respect to Registrant's fiscal year ended November
30, 1995 and unaudited financial statements of SunAmerica Series
Trust with respect to Registrant's fiscal year ended November 30,
1996. The Financial Highlights are set forth in Part A of the
Prospectus under the caption "Financial Highlights." No financial
statements are included in Part C.
All other financial statements, schedules and historical
financial information are omitted because the conditions requiring
their filing do not exist.
(b) Exhibits.
(1) Declaration of Trust, as amended. Incorporated herein by
reference to Post- Effective Amendment No. 6 to the
Registrant's Registration Statement on Form N-1A (File No.
2-85370) filed on February 29, 1996.
(2) By-Laws. Incorporated herein by reference to Post-Effective
Amendment No. 6 to the Registrant's Registration Statement on
Form N-1A (File No. 2-85370) filed on February 29, 1996.
(3) Voting Trust Agreement. Inapplicable.
(4) Share of Beneficial Interest. Inapplicable.
(5)(a) Investment Advisory and Management Agreement between
Registrant and SunAmerica Asset Management Corp. Incorporated
herein by reference to Post-Effective Amendment No. 6 to the
Registrant's Registration Statement on Form N-1A (File No.
2-85370) filed on February 29, 1996.
(5)(b) Subadvisory Agreements. Incorporated herein by reference to
Post-Effective Amendment No. 6 to the Registrant's
Registration Statement on Form N-1A (File No. 2-85370) filed
on February 29, 1996.
(6) Distribution Agreement. Inapplicable.
(7) Bonus, Profit Sharing, Pension or Similar Contracts.
Inapplicable.
(8) Custodian Contract. Incorporated herein by reference to
Pre-Effective Amendment No. 1 to the Registrant's Registration
Statement on Form N-1A (File No. 2-85370) filed on December 4,
1992.
<PAGE> 247
(9) Fund Participation Agreement between Registrant and Anchor
National Life Insurance Company, on behalf of itself and
Variable Separate Account. Incorporated herein by reference to
Post-Effective Amendment No. 6 to the Registrant's
Registration Statement on Form N-1A (File No. 2-85370) filed
on February 29, 1996.
(10) Opinion and Consent of Counsel. Incorporated herein by
reference to Pre-Effective Amendment No. 1 to the Registrant's
Registration Statement on Form N-1A (File No. 2-85370) filed
on December 4, 1992.
(11) Consent of Independent Accountants.
(12) Financial Statements Omitted from Item 23. Inapplicable.
(13) Initial Capitalization Agreement. Inapplicable.
(14) Model Plan. Inapplicable.
(15) Rule 12b-1 Plan. Inapplicable.
(16) Performance Computations. Inapplicable.
(17) Powers of Attorney. Incorporated herein by reference to
Post-Effective Amendment No. 6 to the Registrant's
Registration Statement on Form N-1A (File No. 2-85370) filed
on February 29, 1996.
Item 25. Persons Controlled by or Under Common Control with Registrant.
Incorporated herein by reference to Registrant's Registration Statement on
Form N-1A (File No. 2-85370) filed on November 3, 1992.
Item 26. Number of Holders of Securities.
As of December 13, 1996, the number of record holders of SunAmerica Series
Trust was as follows:
<TABLE>
<CAPTION>
Title of Class Number of Record Holders
-------------- ------------------------
<S> <C>
Shares of Beneficial Interest 3*
</TABLE>
* Held by Variable Separate Account of Anchor National Life
Insurance Company, FS Variable Separate Account of First
SunAmerica Life Insurance Company and SunAmerica Inc.
C-2
<PAGE> 248
Item 27. Indemnification.
Article VI of the Registrant's By-Laws relating to the indemnification of
officers and trustees is quoted below:
ARTICLE VI
INDEMNIFICATION
The Trust shall provide any indemnification required by applicable
law and shall indemnify trustees, officers, agents and employees as
follows:
(a) the Trust shall indemnify any director or officer of the Trust who was
or is a party or is threatened to be made a party of any threatened,
pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (other than action by or in the right of
the Trust) by reason of the fact that such Person is or was such Trustee
or officer or an employee or agent of the Trust, or is or was serving at
the request of the Trust as a director, officer, employee or agent of
another corporation, partnership, joint venture, Trust or other
enterprise, against expenses (including attorneys' fees), judgments, fines
and amounts paid in settlement actually and reasonably incurred by such
Person in connection with such action, suit or proceeding, provided such
Person acted in good faith an in a manner such Person reasonably believed
to be in or not opposed to the best interests of the Trust, and, with
respect to any criminal action or proceeding, had no reasonable cause to
believe such Person's conduct was unlawful. The termination of any action,
suit or proceeding by judgment, order, settlement, conviction or upon a
plea of nolo contendere or its equivalent, shall not, of itself, create a
presumption that the Person did not reasonably believe his or her actions
to be in or not opposed to the best interests of the Trust, and, with
respect to any criminal action or proceeding, had reasonable cause to
believe that such Person's conduct was unlawful.
(b) The Trust shall indemnify any Trustee or officer of the Trust who was
or is a part or is threatened to be made a party to any threatened,
pending or completed action or suit by or in the right of the Trust to
procure a judgment in its favor by reason of the fact that such Person is
or was such Trustee or officer or an employee or agent of the Trust, or is
or was serving at the request of the Trust as a director, officer,
employee or agent of another corporation, partnership, joint venture,
Trust or other enterprise, against expenses (including attorneys' fees),
actually and reasonably incurred by such Person in connection with the
defense or settlement of such action or suit if such Person acted in good
faith and in a manner such Person reasonably believed to be in or not
opposed to the best interests of the Trust, except that no indemnification
shall be made in respect of any claim, issue or matter as to which such
Person shall have been adjudged to be liable for negligence or misconduct
in the performance of such Person's duty to the Trust unless and only to
the extent that the court in which such action or suit was brought, or any
other court having jurisdiction in the premises, shall determine upon
application that, despite the adjudication of liability but in view of all
circumstances of the case, such Person is fairly and reasonably entitled
to indemnity for such expenses which such court shall deem proper.
(c) To the extent that a Trustee or officer of the Trust has been
successful on the merits or otherwise in defense of any action, suit or
proceeding referred to in subparagraphs (a) or (b) above or in defense of
any claim, issue or matter therein, such Person shall be indemnified
against expenses (including attorneys' fees) actually and reasonably
incurred by such Person in connection
C-3
<PAGE> 249
therewith, without the necessity for the determination as to the standard
of conduct as provided in subparagraph (d).
(d) Any indemnification under subparagraph (a) or (b) (unless ordered by a
court) shall be made by the Trust only as authorized in the specific case
upon a determination that indemnification of the Trustee or officer is
proper in view of the standard of conduct set forth in subparagraph (a) or
(b). Such determination shall be made (i) by the Board by a majority vote
of a quorum consisting of Trustees who were disinterested and not parties
to such action, suit or proceedings, or (ii) if such a quorum of
disinterested Trustees so directs, by independent legal counsel in a
written opinion, and any determination so made shall be conclusive and
binding upon all parties.
(e) Expenses incurred in defending a civil or criminal action, writ or
proceeding may be paid by the Trust in advance of the final disposition of
such action, suit or proceeding, as authorized in the particular case,
upon receipt of an undertaking by or on behalf of the Trustee or officer
to repay such amount unless it shall ultimately be determined that such
Person is entitled to be indemnified by the Trust as authorized herein.
Such determination must be made by disinterested Trustees or independent
legal counsel.
Prior to any payment being made pursuant to this paragraph, a majority of
quorum of disinterested, non-party Trustees of the Trust, or an
independent legal counsel in a written opinion, shall determine, based on
a review of readily available facts that there is reason to believe that
the indemnitee ultimately will be found entitled to indemnification.
(f) Agents and employees of the Trust who are not Trustees or officers of
the Trust may be indemnified under the same standards and procedures set
forth above, in the discretion of the Board.
(g) Any indemnification pursuant to this Article shall not be deemed
exclusive of any other rights to which those indemnified may be entitled
and shall continue as to a Person who has ceased to be a Trustee or
officer and shall inure to the benefit of the heirs, executors and
administrators of such a Person.
(h) Nothing in the Declaration or in these By-Laws shall be deemed to
protect any Trustee or officer of the Trust against any liability to the
Trust or to its Shareholders to which such Person would otherwise be
subject by reason of willful malfeasance, bad faith, gross negligence or
reckless disregard of the duties involved in the conduct of such Person's
office.
(i) The Trust shall have power to purchase and maintain insurance on
behalf of any Person against any liability asserted against or incurred by
such Person, whether or not the Trust would have the power to indemnify
such Person against such liability under the provisions of this Article.
Nevertheless, insurance will not be purchased or maintained by the Trust
if the purchase or maintenance of such insurance would result in the
indemnification of any Person in contravention of any rule or regulation
and/or interpretation of the Securities and Exchange Commission.
* * * * * * * * * * * * * *
C-4
<PAGE> 250
The Investment Advisory and Management Agreement provides that in
absence of willful misfeasance, bad faith, gross negligence or reckless
disregard of the duties involved in the conduct of office on the part of
the Investment Adviser (and its officers, directors, agents, employees,
controlling persons, shareholders and any other person or entity
affiliated with the Investment Adviser to perform or assist in the
performance of its obligations under each Agreement) the Investment
Adviser shall not be subject to liability to the Trust or to any
shareholder of the Trust for any act or omission in the course of, or
connected with, rendering services, including without limitation, any
error of judgment or mistake or law or for any loss suffered by any of
them in connection with the matters to which each Agreement relates,
except to the extent specified in Section 36(b) of the Investment Company
Act of 1940 concerning loss resulting from a breach of fiduciary duty with
respect to the receipt of compensation for services. Certain of the
Subadvisory Agreements provide for similar indemnification of the
Subadviser by the Investment Adviser.
SunAmerica Inc., the parent of Anchor National Life Insurance
Company, provides, without cost to the Fund, indemnification of individual
trustees. By individual letter agreement, SunAmerica Inc. indemnifies each
trustee to the fullest extent permitted by law against expenses and
liabilities (including damages, judgments, settlements, costs, attorney's
fees, charges and expenses) actually and reasonably incurred in connection
with any action which is the subject of any threatened, asserted, pending
or completed action, suit or proceeding, whether civil, criminal,
administrative, investigative or otherwise and whether formal or informal
to which any trustee was, is or is threatened to be made a party by reason
of facts which include his being or having been a trustee, but only to the
extent such expenses and liabilities are not covered by insurance.
Insofar as indemnification for liabilities arising under the
Securities Act of 1933, as amended, may be permitted to trustees, officers
and controlling persons of the Registrant pursuant to the foregoing
provisions, or otherwise, the Registrant has been advised that in the
opinion of the Securities and Exchange Commission such indemnification is
against public policy as expressed in the Act and is therefore
unenforceable. In the event that a claim for indemnification against such
liabilities (other than the payment by the Registrant of expenses incurred
or paid by a trustee, officer or controlling person of the Registrant in
the successful defense of any action, suit or proceeding) is asserted by
such trustee, officer or controlling person in connection with the
securities being registered, the Registrant will, unless in the opinion of
its counsel the matter has been settled by controlling precedent, submit
to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
Item 28. Business and other Connections of Investment Adviser.
SunAmerica Asset Management Corp. ("SAAMCo"), the Investment Adviser of
the Trust, is primarily in the business of providing investment
management, advisory and administrative services. Reference is made to the
most recent Form ADV and schedules thereto of SAAMCo on file with the
Commission (File No. 801-19813) for a description of the names and
employment of the directors and officers of SAAMCo and other required
information.
Alliance Capital Management L.P., Goldman Sachs Asset Management, Goldman
Sachs Asset Management International, Phoenix Investment Counsel, Inc.,
Provident Investment Counsel, Inc.,
C-5
<PAGE> 251
Davis Selected Advisers, L.P., Morgan Stanley Asset Management Inc. and
Federated Investment Counseling, the Subadvisers of certain of the
Portfolios of the Trust, are primarily engaged in the business of
rendering investment advisory services. Reference is made to the most
recent Form ADV and schedules thereto on file with the Commission for a
description of the names and employment of the directors and officers of
Alliance Capital Management L.P., Goldman Sachs Asset Management, Goldman
Sachs Asset Management International, Phoenix Investment Counsel, Inc.,
Provident Investment Counsel, Inc., Davis Selected Advisers, L.P. Morgan
Stanley Asset Management Inc. and Federated Investment Counseling, and
other required information:
<TABLE>
<CAPTION>
File No.
--------
<S> <C>
Alliance Capital Management L.P. 801-32361
Goldman Sachs Asset Management 801-16048
Goldman Sachs Asset Management Int'l. 801-38157
Phoenix Investment Counsel, Inc. 801-5995
Provident Investment Counsel, Inc. 801-11303
Davis Selected Advisers, L.P. 801-31648
Morgan Stanley Asset Management Inc. 801-15757
Federated Investment Counseling 801-34611
</TABLE>
Item 29. Principal Underwriters.
There is no Principal Underwriter for the Registrant.
Item 30. Location of Accounts and Records.
State Street Bank and Trust Company, 225 Franklin Street, Boston,
Massachusetts 02110, acts as custodian, transfer agent and dividend paying
agent. It maintains books, records and accounts pursuant to the
instructions of the Trust.
SunAmerica Asset Management Corp., is located at The SunAmerica Center,
733 Third Avenue, New York, New York 10017-3204. Alliance Capital
Management L.P. is located at 1345 Avenue of the Americas, New York, New
York 10105. Goldman Sachs Asset Management and Goldman Sachs Asset
Management International are located at 85 Broad Street, 12th Floor, New
York, New York 10005. Morgan Stanley Asset Management Inc., is located at
1221 Avenue of the Americas, 22nd Floor, New York, New York 10020. Phoenix
Investment Counsel, Inc. is located at One American Row, Hartford,
Connecticut 06115. Provident Investment Counsel, Inc. is located at 300
No. Lake Avenue, Penthouse Suite, Pasadena, California 91101-4922. Davis
Selected Advisers, L.P. is located at 124 East Marcy Street, Sante Fe, New
Mexico 87501. Federated Investment Counseling is located at Federated
Investors Tower, 1001 Liberty Avenue, Pittsburgh, Pennsylvania 15222-3779.
Each of the Investment Adviser and Subadvisers maintain the books,
accounts and records required to be maintained pursuant to Section 31(a)
of the Investment Company Act of 1940 and the rules promulgated
thereunder.
Item 31. Management Services.
None.
C-6
<PAGE> 252
Item 32. Undertakings.
Registrant hereby undertakes to:
(a) Inapplicable;
(b) Inapplicable; and
(c) furnish an investor to whom a prospectus is delivered with a copy of
Registrant's latest annual report to shareholders, upon request and
without charge.
C-7
<PAGE> 253
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended,
and the Investment Company Act of 1940, as amended, Registrant certifies that it
meets all of the requirements for effectiveness of the Post-Effective Amendment
No. 9 to the Registration Statement pursuant to Rule 485(b) under the Securities
Act of 1933, as amended, and has duly caused the Post-Effective Amendment No. 9
to the Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of New York, and State of New York, on
the 27th day of December, 1996.
SUNAMERICA SERIES TRUST
By: /s/ PETER C. SUTTON
---------------------------
Peter C. Sutton
Vice President
Pursuant to the requirements of the Securities Act of 1933, as amended,
the Post-Effective Amendment No. 9 to Registrant's Registration Statement has
been signed below by the following persons in the capacities and on the dates
indicated:
<TABLE>
<S> <C> <C>
JAMES K. HUNT * Trustee, Chairman and President December 27, 1996
- ------------------------------ (Principal Executive Officer)
James K. Hunt
SCOTT L. ROBINSON * Senior Vice President, Treasurer December 27, 1996
- --------------------------- and Controller (Principal Financial
Scott L. Robinson and Accounting Officer)
RICHARDS D. BARGER * Trustee December 27, 1996
- -------------------------
Richards D. Barger
FRANK L. ELLSWORTH * Trustee December 27, 1996
- ------------------------
Frank L. Ellsworth
NORMAN J. METCALFE * Trustee December 27, 1996
- ------------------------
Norman J. Metcalfe
</TABLE>
*By: /s/ ROBERT M. ZAKEM
-----------------------
Robert M. Zakem
Attorney-in-Fact
<PAGE> 254
SUNAMERICA SERIES TRUST
EXHIBIT INDEX
<TABLE>
EXHIBIT NO. NAME PAGE NO.
- ----------- ---- --------
<S> <C> <C>
11 Consent of Price Waterhouse LLP ______
</TABLE>
<PAGE> 1
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Statement of Additional Information
constituting part of this Post-Effective Amendment No. 9 to the registration
statement on Form N-1A (the "Registration Statement") of our report dated
January 16, 1996, relating to the financial statements and financial highlights
of SunAmerica Series Trust, which appears in such Statement of Additional
Information. We also consent to the reference to us under the heading "General
Information -- Independent Accountants" in such Statement of Additional
Information and to the references to us under the headings "Financial
Highlights" and "Reports and Independent Accountants" in the Prospectus which
constitutes part of this Registration Statement.
/s/ Price Waterhouse LLP
PRICE WATERHOUSE LLP
New York, New York
December 23, 1996
