<PAGE> 1
[POLARIS LOGO]
SUNAMERICA
SERIES TRUST
SEMIANNUAL REPORT
MAY 31, 1997
<PAGE> 2
- ---------------------
DEAR INVESTOR:
We are pleased to present our semiannual report for the
SunAmerica Series Trust, one of the underlying trusts for the
Polaris Variable Annuity from Anchor National Life Insurance
Company and First SunAmerica Life Insurance Company, and for the
Polaris(II) Variable Annuity from Anchor National Life Insurance
Company.
You may already be aware that the SunAmerica Series Trust has
welcomed some exciting new investment opportunities into its ranks
of investment options. Besides the existing Venture Value
Portfolio, Davis Selected Advisers, L.P. manages the new Real
Estate Portfolio, which became available June 2, 1997. You may
already be familiar with the name Putnam Investments, which
assumed management of the Putnam Growth Portfolio (formerly named
the Provident Growth Portfolio) April 16, 1997. Putnam also
manages the new International Growth and Income and Emerging
Markets Portfolios in the SunAmerica Series Trust, which became
available June 2, 1997. As these portfolios are new to the Trust
and have not yet accumulated performance history, you can look
forward to receiving more information on them in your 1997
SunAmerica Series Trust annual report at the end of January 1998.
The following is a combined perspective on the U.S. and global
economies over the past six-month reporting period from eight of
the money managers that manage portfolios in the Polaris and
Polaris(II) variable annuities (excluding Wellington Management
Company LLP, which manages the portfolios in the Anchor Series
Trust, for which you will receive a complete report in about one
month).
ECONOMIC OVERVIEW -- UNITED STATES
The economic environment over the past six months has been one
of strong market returns, low unemployment and low inflation,
reports Davis Selected Advisers, L.P. ("Davis") and Phoenix
Investment Counsel ("Phoenix"). Federated Investors ("Federated")
adds that the soaring stock market is making Americans feel
wealthy, further encouraging spending. Such momentum raises some
concerns, warns Federated, noting that an extensive period of
above-normal growth in an economy operating near its potential is
a recipe for inflation. Therefore, Federated believes the U.S.
Federal Reserve Board's early spring move to raise short-term
interest rates may be followed by additional rate hikes later in
the year, as it attempts to prevent inflation from building over
the next year or two.
BOND MARKET
According to Federated, the high-quality bond market experienced
a negative turn in the early part of this year due in large part
to stronger-than-expected economic activity in late 1996 and early
1997, eventually culminating in the Federal Reserve raising
interest rates in February. However, April brought a strong bond
market rally as inflation remained very low. Obviously, additional
rate hikes later this year would adversely impact the bond market.
---------------------------------------------------------------------------
1
<PAGE> 3
- ---------------------
STOCK MARKET
According to Federated, the U.S. stock market has shown
surprising strength in the first five months of the year,
especially given the strength of 1995 and 1996. Consumer spending
is strong as a tight labor market fosters rising wages, increased
job security, and higher consumer confidence. The resulting
increased consumption has fueled accelerated production, and an
underlying growth in capital spending. Only a rising dollar casts
a shadow on this positive economic backdrop. However, currency
movements affect trade flows with a lag, so Federated believes
that any dampening effect of a rising dollar should not be a
concern until later this year.
Phoenix also notes the continuing strength in the equity
markets, believing it is driven predominantly by the very large
market capitalization companies that dominate the S&P 500 Index.
The emphasis on these stocks has been fueled by a more pronounced
move into index funds, says Phoenix, as well as investors' quest
for perceived safety afforded by higher quality companies during a
period of mounting uncertainty. Phoenix believes the stock market
will continue to make progress, but at more moderate rates of
return than in the past two years.
WHERE IS THE U.S. ECONOMY HEADED?
SunAmerica Asset Management Corp. ("SAAMCO") believes that the
first quarter of 1997 will prove to be the strongest of the year,
and that GDP growth will continue to slow to a more sustainable
2.5% - 3.0% for the remainder of the year. Some factors triggering
this are a higher savings and investment rate and a slower
spending rate by consumers, and some evidence of saturation in key
consumer buying areas such as retail apparel and personal
computers.
Going beyond 1997, Davis expects the Dow to approach 10,000
around the turn of the century, punctuated by volatility and
corrections of up to 1,000 points along the way. Even so, the Dow
has increased from 1,000 to 7,000 very rapidly, and Davis cautions
that percentage gains may not be as spectacular as they have been
in the past recent years.
ECONOMIC OVERVIEW -- GLOBAL MARKETS
In the face of a painful yet inevitable move toward Europe's
implementation of the European Monetary Unit (EMU), Alliance
Capital Management, L.P. ("Alliance") believes the current
environment remains very supportive of global economic growth.
Policy constraints have kept European short-term interest rates at
record lows, while Japanese rates, if eventually raised, would
lift from emergency lows of .5% to normal cyclical lows. In fact,
the weakening Japanese yen has offered support to Japanese
economic activity, and has started to make a contribution to
corporate profits. Capital spending in Japan is on a solid
upswing.
Goldman Sachs Asset Management ("GSAM") finds that the
restlessness surrounding the EMU and its direction have helped to
keep bond prices under pressure in continental Europe as investors
question Germany's leadership role in the EMU process. This,
coupled with the Socialist victory in France, has raised questions
about the future of EMU and of interest rates in general.
- ---------------------
2
<PAGE> 4
- ---------------------
WHERE ARE THE GLOBAL MARKETS HEADED?
Morgan Stanley Asset Management Inc. ("MSAM") forecasts moderate
world economic growth for the remainder of 1997, with little
inflationary pressure. The manager expects the U.S. economy to
slow from its scorching pace of the last six months, while growth
in both Japan and Europe should post at approximately 2.5% for
this calendar year. Non-U.S. growth is supported by continued
monetary accommodation and currency devaluation in the yen and
deutsche mark blocs. These positive growth forces are only partly
offset by the global trend toward fiscal restraint. Recent signs
of an economic pickup in Hong Kong, Singapore and Australia fit
into MSAM's thesis of a cyclical recovery in Asia.
The following is an analysis of each portfolio in the SunAmerica
Series Trust, as reported by its respective money manager. The
reporting period is from November 30, 1996 to May 31, 1997.
CASH MANAGEMENT -- SUNAMERICA ASSET MANAGEMENT CORP.
This portfolio performed quite well over the six-month reporting
period, returning 2.48%. This positive performance can be
attributed to the portfolio's slightly longer average days to
maturity (about 60 days) as compared to the Donaghue average of
about 55 days at the end of May. Because the Federal Reserve will
most likely remain on hold for at least the next few months,
SAAMCO expects to begin reducing the average maturity closer to
the current Donaghue average of about 52 days. SAAMCO will
continue to search for securities with the best relative value
characteristics and will structure the portfolio to provide
flexibility in a very dynamic market.
CORPORATE BOND -- FEDERATED INVESTORS
This portfolio returned 1.49% for the six-month reporting
period. The high-quality bond market experienced a negative turn
in the early part of 1997 due in large part to stronger than
expected economic activity late in 1996 and early in 1997,
eventually culminating in the Federal Reserve raising interest
rates in February of this year. However, April saw a strong rally
in the bond market as inflation remained very low. With the recent
economic strength and volatility in the bond market, Federated
believes it is likely that the portfolio's high yield allocation
will be maintained to enable a larger income flow with reduced
sensitivity to interest rates.
GLOBAL BOND -- GOLDMAN SACHS ASSET MANAGEMENT
For the six-month period ended May 31, 1997, the Global Bond
Portfolio returned 1.55%. According to Goldman Sachs, the
socio-politically driven weakness in the European market was
somewhat offset by strength in the U.K. and Australia, where the
fiscal policies of the new Labour government and an interest rate
cut by the Royal Bank of Australia in May, respectively, have
helped bond prices.
HIGH-YIELD BOND -- SUNAMERICA ASSET MANAGEMENT CORP.
For the six-month period ending May 31, 1997, this portfolio
returned 4.45%, in reaction to a strong first three months
followed by a weak second fiscal quarter. The weak showing
---------------------
3
<PAGE> 5
- ---------------------
in the latter quarter can be attributed to the portfolio's
overweighted position in telecommunications, as that sector was
hit particularly hard during the market selloff in March and
April. Most of the telecommunications holdings began to rally in
May, and the manager remains constructive about the sector.
Besides telecommunications, the portfolio is currently
overweighted in the manufacturing and financial services sectors,
and is underweighted in gaming, retail and restaurants. All other
sectors are close to market weightings.
WORLDWIDE HIGH INCOME -- MORGAN STANLEY ASSET MANAGEMENT INC.
During the six months ended May 31, 1997, the portfolio returned
9.42%. According to MSAM, improving fundamentals in many emerging
countries and a series of upgrades by the major rating agencies
helped to immunize developing country debt from the negative U.S.
environment and contribute to the portfolio's return. The
portfolio's performance can be attributed to increased allocations
to the debt of eastern European economies, as well as the debt of
some African countries. MSAM continues to maintain a highly
diversified portfolio, with the largest foreign concentrations in
Argentina, Brazil and Mexico.
SUNAMERICA BALANCED -- SUNAMERICA ASSET MANAGEMENT CORP.
The SunAmerica Balanced Portfolio posted a 7.85% return for the
six months ended May 31, 1997. SAAMCO feels that the current
period of U.S. domestic prosperity should last for at least
several more years, and expects that the U.S. stock markets will
continue to move higher to reflect this positive economic
backdrop; both fixed income and equity products are expected to
continue to provide very competitive returns.
To fully participate in this economic renaissance, SAAMCO
strives to position the portfolio in those sectors and in those
companies which have the best global outlook and are leaders in
their particular product areas. The portfolio is currently
structured 67% in equities and 33% in cash and fixed income, with
the equity portion concentrated in financial and
interest-sensitive stocks, health care and technology. The
portfolio's largest equity holdings include Motorola, Delta
Airlines, Alluminum Co. of America, IBM, Dell Computers, Warner
Lambert and Chase Manhattan Corp.
BALANCED/PHOENIX INVESTMENT COUNSEL
For the six-month period ended May 31, 1997, the
Balanced/Phoenix Investment Counsel Portfolio posted a 4.29%
return. For the period, sector selection within the fixed income
market was key for the fixed income portion of the portfolio. The
portfolio benefited further from strong stock selection in the
financial services and consumer staples sectors, as well as
Phoenix's decision to increase the portfolio's equity exposure
after the stock market correction in mid-April. Allocations to
emerging markets and mortgage-backed securities also delivered
strong relative performance.
ASSET ALLOCATION -- GOLDMAN SACHS ASSET MANAGEMENT
For the six-month period ended May 31, 1997, the Asset
Allocation Portfolio returned 11.51%. The portfolio's holdings
were split 61% in equities, 37% in fixed income and 2% in cash for
the reporting period.
- ---------------------
4
<PAGE> 6
- ---------------------
As the strength in first-quarter 1997 GDP growth indicates,
corporate earnings continued to remain strong, fueled by
heightened consumer spending. Within the equity portion of the
portfolio, the consumer durables, financial, and transportation
sectors performed well, bearing out the expectation that continued
benign inflation will restrain the Federal Reserve from tightening
monetary policy in the near future. Top equity holdings included
SunBeam, Lear, Unicom, Cigna and Avnet.
In the fixed income portion of the portfolio, the increase in
holdings of U.S. Treasuries has offset decreases in the
pass-through and corporate sectors, in which GSAM holds cautious
and neutral views, respectively.
UTILITY -- FEDERATED INVESTORS
This portfolio's performance of 7.36% for the six-month
reporting period was bolstered in particular by its international
holdings as well as its telephone stocks and certain natural gas
stocks. Looking ahead, Federated expects to see more merger
activity positively affecting the natural gas sector, while
electric stocks should benefit from the lifting of regulatory
uncertainty.
The telecommunications sector remains the clear winner among the
portfolio's subsectors thus far this year, as many phone companies
continue to exhibit double-digit earnings growth. As investors
become increasingly uncomfortable about the sustainability of
overall stock market gains, the manager expects this portfolio
will be used for its defensive qualities.
GROWTH-INCOME -- ALLIANCE CAPITAL MANAGEMENT L.P.
This portfolio posted a 14.36% return for the six-month period
ending May 31, 1997. The portfolio benefited from both
overweighted positions and strong issue selection within the
technology, consumer non-durables, and financial sectors. Leading
contributors to performance within technology included Microsoft,
Dell, Intel, Applied Materials, and Compaq. Outperformers in the
consumer non-durables sector included Philip Morris, Coca Cola,
Procter & Gamble and Colgate Palmolive. The financial industry
sector was led by holdings in Merrill Lynch, American Express and
MBNA. Also aiding the portfolio's performance were underweighted
positions in the consumer durables, raw materials and utility
sectors.
FEDERATED VALUE -- FEDERATED INVESTORS
For the six months ended May 31, 1997, the Federated Value
Portfolio returned 11.63%. Federated attributes the portfolio's
overall strong performance to being fully invested, as well as to
an orientation toward quality selections, which often occurs when
the direction of the stock market is in question. For the
remainder of the year, the manager's investment position will be
one of stock selection vs. market participation.
VENTURE VALUE -- DAVIS SELECTED ADVISERS, L.P.
For the six-month period ended May 31, 1997, the portfolio
posted a 12.47% return. Davis indicates that financial brand names
are emerging as Baby Boomers enter their peak earning, saving and
investing years. To capitalize on this, Davis has purchased large
holdings in Wells Fargo and Travelers, both of which were
purchased at less than 10 times
---------------------
5
<PAGE> 7
- ---------------------
earnings -- well in keeping with Davis' profile of overlooked,
undervalued growth companies selling at value prices. American
Express, which Davis believes is one of the great brands
worldwide, remains a top holding in the portfolio. A core
investment in Citicorp also has performed well. First-rate
pharmaceutical companies should benefit the portfolio as the Baby
Boomers age, so this sector is invested in Bristol-Meyers Squibb,
Merck, Pfizer and Eli Lilly, among others.
Significant holdings in the energy services sector include
Halliburton, Schlumberger, Burlington Resources and Smith
International. Intel, Hewlett Packard and IBM represent the
largest technology holdings. Davis never loses sight of the fact
that its 28-year performance has been built as much by avoiding
the big losers as by picking winners.
ALLIANCE GROWTH -- ALLIANCE CAPITAL MANAGEMENT L.P.
The Alliance Growth Portfolio achieved a 13.58% return during
the reporting period. The portfolio's strong performance was
attributable to significant overweights in both the Technology and
Financial sectors as well as superior stock selection within those
sectors and throughout the portfolio in general. Particular
contributors to performance included Dell Computers, Compaq,
Microsoft, Applied Materials, Merrill Lynch, MBNA and Dean Witter
Discover. The portfolio in the aggregate continues to offer
superior relative earnings momentum.
GROWTH/PHOENIX INVESTMENT COUNSEL
For the six-month period ended May 31, 1997, the Growth/Phoenix
Investment Counsel Portfolio posted a 6.90% return. In retrospect,
portfolio performance was dampened by lower-than-market weighting
to large-cap issues. While many large-cap stocks are held in this
portfolio, it also contains many mid-cap issues with rapid growth
prospects, which the market did not reward as highly. Sectors in
which the portfolio performed well during the reporting period
included consumer staples, financials and health care. Areas of
underperformance included technology -- which, outside the largest
companies, continues to be challenging despite excellent growth
prospects -- basic materials and energy stocks.
PUTNAM GROWTH -- PUTNAM INVESTMENT MANAGEMENT, INC. ("PUTNAM")
This portfolio returned 7.39% for the six months ended May 31,
1997. Putnam made some strategic shifts in portfolio weightings
during the reporting period. Chief among these shifts was the
significant addition to financial services stocks. Fueling the
move was Putnam's expectation that interest rates would remain
low, as well as the many growth opportunities evolving in the
financial sector because of deregulation. Health care was another
sector favored by Putnam, primarily on the basis of a strong flow
of new products to market following a period of intensive spending
on research and development.
AGGRESSIVE GROWTH -- SUNAMERICA ASSET MANAGEMENT CORP.
The Aggressive Growth Portfolio posted a -2.52% return for the
six months ended May 31, 1997. The portfolio's performance
compares favorably with that of portfolios
- ---------------------
6
<PAGE> 8
- ---------------------
managed by other small cap growth managers, and compares
unfavorably with value or larger cap managers. However, SAAMCO
expects smaller growth to start outperforming the value or larger
cap areas as the economy slows and more investors begin to search
for growth names.
The portfolio's investments span many sectors, including
financial services which is benefiting from improved savings and
investments rates, as well as low inflation and sector
consolidation. Technology, including semiconductors and equipment
hardware, software datacom and telecom equipment, represents about
30% of the portfolio's holdings, reflecting SAAMCO's prediction
that business in various sectors would improve and that the
Russell 2000 rebalancing would increase the index weighting of
technology. Larger holdings in the sector include Corning, Lucent
Technologies and Remec.
GLOBAL EQUITIES -- ALLIANCE CAPITAL MANAGEMENT L.P.
The Global Equities Portfolio achieved performance of 9.75% for
the six-month period ended May 31, 1997. At the country level, the
portfolio benefited from overweighted positions in the U.S.,
Switzerland and the Netherlands relative to the benchmark, as well
as superior relative stock selection in the U.S., Japan and
Europe. Overweighted stocks appreciating in excess of 20% for the
six-month period included Novartis, ING Group, Fortis Amev,
Smithkline Beecham, Rohm, Woolworths, and Berjaya Group.
No dramatic shifts occurred during the reporting period in
either industry or sector allocation. The portfolio continued to
emphasize companies offering strong earnings and fundamental
momentum and value, with many of those residing in the financial,
technology, consumer services, and consumer staples sectors.
INTERNATIONAL DIVERSIFIED EQUITIES -- MORGAN STANLEY ASSET
MANAGEMENT INC.
For the six-month period ended May 31, 1997, the International
Diversified Equities Portfolio posted a return of 5.02%. According
to MSAM, Japan's market rebounded from an early year slump,
leading to relatively good overall performance. MSAM's decision to
tilt out of the banking sector was positive for the portfolio's
relative results due to the bank sector's significant
underperformance. Country allocations to Spain and Germany were
likewise positive for performance, as was the decision to
eliminate positions in Malaysia, which is facing a large current
account deficit and the potential for real estate problems. An
underweight in Switzerland detracted from returns.
MSAM expects to see an upswing in Asia as global economic growth
picks up. Although Singapore was basically flat for the period,
the country should benefit from recent strength in the yen and
global electronics demand, while Hong Kong seeks to benefit from
investor interest in China and a fairly smooth handover. In
Thailand, continuing pressure regarding financial institutions and
currency will keep the manager on a cautious watch, despite
compelling valuations there. Going forward, the manager believes
EMU tensions and uncertainty continue to favor the strengthening
of the U.S. dollar vs. the deutsche mark bloc, and has hedged the
deutsche mark accordingly.
As we enter the second half of 1997 with the money managers in
varying degrees of conservative optimism, it's important to keep
in mind that investing over the long term is as critical to
building your Personal Retirement Portfolio(TM) as are your
investment selections and how market fluctuations change the value
of those selections. Our money
---------------------
7
<PAGE> 9
- ---------------------
managers remain committed to helping you achieve your long-term
goals by striving to uncover promising investment opportunities as
they arise. If you have any questions about your investment, we
urge you to consult your investment representative for advice. In
the meantime, thank you for choosing the Polaris Variable Annuity
or the Polaris(II) Variable Annuity as your retirement savings
investment. We look forward to serving you for years to come.
Sincerely,
/s/ Eli Broad
Eli Broad
Chairman and Chief Executive Officer
Anchor National Life Insurance Company and
First SunAmerica Life Insurance Company
July 16, 1997
-----------------------------------------------
All portfolio performance is reported at the underlying trust
level, which includes investment management annual expenses but
does not include charges or fees at the variable annuity level.
Past performance is no guarantee of future results.
Investments in stocks and bonds are subject to risk, including
stock market and interest rate fluctuations. Investments in
non-U.S. stocks and bonds are subject to additional risks,
including currency fluctuations, political and social instability,
differing securities regulations and accounting standards, and
limited public information. High-yield bonds tend to be subject to
greater price swings than higher-rated bonds and, of course,
payment of interest and principal is not assured. Mortgage-backed
securities are subject to prepayment, which can result in
reinvestment of principal at lower yields. Investment in
securities related to gold or other precious metals and minerals
are considered speculative and are impacted by a host of worldwide
economic, financial and political factors. Money market
instruments generally offer stability and income, but an
investment in these securities is not guaranteed by the U.S.
government or any other entity.
- ---------------------
8
<PAGE> 10
- ---------------------
SUNAMERICA SERIES TRUST
CASH MANAGEMENT PORTFOLIO INVESTMENT PORTFOLIO -- MAY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 90.2% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
BANKERS' ACCEPTANCES -- 5.4%
Bank of Tokyo Mitsubishi Ltd 5.45% due 6/23/97......................... $ 3,000,000 $ 2,990,008
Industrial Bank of Japan Ltd. 5.70% due 7/01/97........................ 3,000,000 2,985,750
Sanwa Bank Ltd. 5.64% due 7/14/97...................................... 4,000,000 3,973,054
-------------
TOTAL BANKERS' ACCEPTANCES (cost $9,948,812)........................... 9,948,812
-------------
CERTIFICATES OF DEPOSIT -- 8.8%
Abbey National Treasury Services PLC 5.50% due 11/26/97................ 5,000,000 4,993,750
Dai Ichi Kangyo Bank 5.86% due 8/05/97................................. 2,000,000 2,000,355
Industrial Bank of Japan Ltd. 5.85% due 7/18/97........................ 4,000,000 4,000,103
Rabobank Nederland NV 6.07% due 3/26/98................................ 4,000,000 4,003,668
Rabobank Nederland NV 6.20% due 4/09/98................................ 1,000,000 1,000,042
-------------
TOTAL CERTIFICATES OF DEPOSIT (cost $15,985,577)....................... 15,997,918
-------------
COMMERCIAL PAPER -- 42.5%
Accor SA 5.65% due 7/16/97............................................. 5,000,000 4,964,688
Australian Wheat Board 5.63% due 8/07/97............................... 2,000,000 1,978,533
Avnet, Inc. 5.63% due 7/02/97.......................................... 5,000,000 4,975,760
BIL North America, Inc. 5.65% due 7/17/97.............................. 5,000,000 4,963,903
Certain Funding Corp. 5.63% due 7/11/97................................ 3,000,000 2,981,233
Eksportfinans A/S 5.60% due 8/29/97.................................... 3,000,000 2,957,457
FP Funding Corp. 5.70% due 6/20/97..................................... 3,000,000 2,990,975
Galicia Funding Corp. 5.38% due 6/03/97................................ 5,000,000 4,998,507
Guinness PLC 5.62% due 7/21/97......................................... 5,000,000 4,960,972
International Lease Finance Corp. 5.66% due 8/13/97.................... 5,000,000 4,941,354
Island Finance Puerto Rico Inc. 5.64% due 7/10/97...................... 5,000,000 4,969,450
Merrill Lynch & Co., Inc. 5.63% due 8/20/97............................ 2,000,000 1,974,443
Mitsui & Co. USA, Inc. 5.63% due 7/16/97............................... 5,000,000 4,964,812
Monsanto Co. 5.60% due 7/10/97......................................... 5,000,000 4,969,667
Orix America, Inc. 5.50% due 6/02/97................................... 2,000,000 1,999,694
Shimizu International Finance 5.70% due 6/12/97........................ 5,000,000 4,991,292
Sumitomo Corp. of America 5.78% due 8/22/97............................ 3,000,000 2,960,520
Transport Adora De Gas Delaware 5.65% due 7/24/97...................... 5,000,000 4,958,410
USAA Capital Corp. 5.60% due 7/07/97................................... 5,000,000 4,972,000
-------------
TOTAL COMMERCIAL PAPER (cost $77,476,968).............................. 77,473,670
-------------
CORPORATE SHORT-TERM NOTES -- 22.2%
Bear Stearns Co., Inc. 5.69% due 11/03/97(1)........................... 3,000,000 2,999,580
Bear Stearns Co., Inc. 5.72% due 4/06/98(1)............................ 2,500,000 2,500,000
Boatmens Credit Card Bank New Mexico 5.67% due 8/08/97(1).............. 3,000,000 2,999,340
Boatmens First National Bank Kansas 5.66% due 6/17/97(1)............... 2,000,000 2,000,000
Demir Funding Corp. 5.65% due 7/16/97.................................. 5,000,000 4,964,687
Iowa Illinois Gas & Electric Co. 5.88% due 7/15/97..................... 3,000,000 3,000,078
Lehman Brothers Holdings Inc. 5.81% due 6/02/97(1)..................... 2,000,000 2,002,380
Manufacturer's Hanover Corp. 6.13% due 7/15/97(1)...................... 3,000,000 3,000,750
Petroleo Brasileiro SA 5.62% due 7/02/97............................... 5,000,000 4,975,803
Sigma Finance Corp. 6.28% due 4/24/98.................................. 4,000,000 4,003,344
Toshiba International Finance 5.35% due 6/13/97........................ 2,000,000 1,996,433
</TABLE>
---------------------
9
<PAGE> 11
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES (continued)
Tribune Co. 5.65% due 6/24/97.......................................... $ 4,000,000 $ 3,985,561
Usl Capital Corp. 5.91% due 7/07/97(1)................................. 2,000,000 2,002,059
-------------
TOTAL CORPORATE SHORT-TERM NOTES (cost $40,428,240).................... 40,430,015
-------------
FEDERAL AGENCY OBLIGATIONS -- 4.3%
Federal National Mortgage Association Discount Notes 5.57% due 10/09/97
(cost $7,839,089).................................................... 8,000,000 7,839,253
-------------
MUNICIPAL BONDS -- 7.0%
Illinois Student Assistance Commission 5.69% 6/04/97(1)................ 4,000,000 4,000,000
Illinois Student Assistance Corp. 5.69% 6/04/97(1)..................... 3,000,000 3,000,000
New Hampshire State Industrial Development Authority, Revenue
5.79% due 7/23/97.................................................... 4,000,000 3,999,995
Texas General Obligation 5.62% 6/04/97(1).............................. 1,875,000 1,875,000
-------------
TOTAL MUNICIPAL BONDS (cost $12,874,995)............................... 12,874,995
-------------
TOTAL SHORT-TERM SECURITIES (cost $164,553,681)........................ 164,564,663
-------------
REPURCHASE AGREEMENT -- 7.6%
----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 7.6%
Joint Repurchase Agreement Account (Note 3) (cost $13,851,000)......... 13,851,000 13,851,000
-------------
TOTAL INVESTMENTS -- (cost $178,404,681) 97.8% 178,415,663
Other assets less liabilities -- 2.2 3,956,735
------ -------------
NET ASSETS -- 100.0% $182,372,398
====== =============
</TABLE>
-----------------------------
(1) Variable rate security; maturity date reflects next reset
date; rate as of May 31, 1997.
See Notes to Financial Statements
- ---------------------
10
<PAGE> 12
- ---------------------
SUNAMERICA SERIES TRUST
CORPORATE BOND PORTFOLIO INVESTMENT PORTFOLIO -- MAY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 91.2% AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 3.4%
Apparel & Textiles -- 1.7%
Collins & Aikman Corp. 11.50% 2006...................................... $ 100,000 $ 112,250
GFSI, Inc. 9.63% 2007*.................................................. 50,000 50,000
Reliance Industries Ltd. 8.25% 2027*.................................... 500,000 493,145
Westpoint Stevens, Inc. 9.38% 2005...................................... 100,000 104,250
Automotive -- 0.4%
Aftermarket Technology Corp. 12.00% 2004................................ 75,000 82,688
Exide Corp. 10.00% 2005................................................. 50,000 52,125
Lear Corp. 9.50% 2006................................................... 50,000 53,000
Housing -- 0.2%
Foamex L.P. 9.88% 2007*................................................. 50,000 50,750
Syratech Corp. 11.00% 2007.............................................. 50,000 53,125
Retail -- 1.1%
Penney (J.C.) Co., Inc. 7.65% 2016...................................... 500,000 495,850
-------------
1,547,183
-------------
CONSUMER STAPLES -- 3.7%
Food, Beverage & Tobacco -- 2.9%
Carr Gottstein Foods Co. 12.00% 2005.................................... 100,000 110,000
International Home Foods, Inc. 10.38% 2006.............................. 100,000 102,000
MBW Foods, Inc. 9.88% 2007*............................................. 50,000 50,375
Philip Morris Cos, Inc. 7.75% 2027...................................... 750,000 723,668
Ralphs Grocery Co. 10.45% 2004.......................................... 100,000 109,750
RJR Nabisco, Inc. 8.63% 2002............................................ 235,000 239,698
Household Products -- 0.8%
Playtex Family Products Corp. 9.00% 2003................................ 100,000 100,000
Renaissance Cosmetics, Inc. 11.75% 2004*................................ 50,000 50,750
Revlon Consumer Products Corp. 10.50% 2003.............................. 100,000 105,750
Simmons Co. 10.75% 2006................................................. 100,000 105,500
-------------
1,697,491
-------------
ENERGY -- 5.3%
Energy Services -- 2.4%
Coastal Corp. 9.75% 2003................................................ 250,000 283,510
Enersis SA 7.40% 2016................................................... 600,000 566,322
Tosco Corp. 7.00% 2000.................................................. 250,000 250,933
Energy Sources -- 2.9%
Abraxas Petroleum Corp. 11.50% 2004..................................... 75,000 81,750
Forcenergy, Inc. 9.50% 2006............................................. 50,000 51,500
Husky Oil Ltd. 7.13% 2006............................................... 500,000 488,470
Sun Co., Inc. 9.00% 2024................................................ 500,000 548,480
United Meridian Corp. 10.38% 2005....................................... 75,000 81,000
XCL Ltd. 11.00% 2004(1)(2).............................................. 50,000 50,000
-------------
2,401,965
-------------
</TABLE>
---------------------
11
<PAGE> 13
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 24.1%
Banks -- 6.0%
ABN Amro Holdings NV 7.30% 2026......................................... $ 500,000 $ 462,050
African Development Bank 6.88% 2015..................................... 500,000 470,250
Bank Montreal-Chicago 7.80% 2007........................................ 225,000 231,507
Continental Bank NA 12.50% 2001(1)...................................... 300,000 354,738
First Nationwide Holdings, Inc. 10.63% 2003............................. 100,000 109,000
Firstbank Puerto Rico 7.63% 2005........................................ 500,000 488,795
Security Pacific Corp. 11.50% 2000...................................... 275,000 313,390
Signet Banking Corp. 9.63% 1999......................................... 300,000 315,804
Financial Services -- 13.5%
Allmerica Financial Corp. 7.63% 2025.................................... 500,000 481,475
American General Corp. 9.63% 2018....................................... 500,000 530,205
Case Equipment Loan Trust 7.30% 2002.................................... 102,391 103,358
Chevy Chase Auto Receivables 5.80% 2002................................. 92,099 91,724
CNA Financial Corp. 7.25% 2023.......................................... 500,000 459,390
ContiFinancial Corp. 8.38% 2003......................................... 100,000 110,000
Continental Corp. 8.25% 1999............................................ 100,000 102,684
Delphi Funding LLC 9.31% 2027........................................... 700,000 708,022
Ford Capital BV 9.38% 2001.............................................. 600,000 650,604
Ford Capital BV 9.50% 2001.............................................. 200,000 217,622
General Motors Acceptance Corp. 5.63% 2001.............................. 300,000 288,213
Lehman Brothers, Inc. 7.38% 2007........................................ 575,000 566,266
Navistar Financial 6.55% 2001........................................... 112,923 113,346
Outsourcing Solutions, Inc. 11.00% 2006*................................ 50,000 53,375
Premier Auto Trust 4.90% 1998........................................... 26,457 26,358
Premier Auto Trust 7.90% 1999........................................... 113,466 114,210
Resolution Funding Corp. zero coupon 2021............................... 640,000 117,421
Salomon, Inc. 7.20% 2004................................................ 525,000 518,280
Standard Credit Card Master Trust 6.25% 1998............................ 260,000 260,325
Swedish Export Credit Corp. 9.88% 2038.................................. 500,000 536,150
Trizec Finance Corp., Ltd. 10.88% 2005.................................. 100,000 111,000
Insurance -- 4.6%
Conseco, Inc. 10.50% 2004............................................... 750,000 874,298
GE Global Insurance Holdings Corp. 7.00% 2026........................... 750,000 700,770
USF & G Capital II 8.47% 2027........................................... 500,000 494,475
-------------
10,975,105
-------------
HEALTHCARE -- 1.1%
Health Services -- 0.8%
Genesis Health Ventures, Inc. 9.75% 2005................................ 50,000 52,125
Tenet Healthcare Corp. 8.00% 2005....................................... 200,000 200,250
Tenet Healthcare Corp. 10.13% 2005...................................... 100,000 109,000
Medical Products & Services -- 0.3%
Dade International, Inc. 11.13% 2006*................................... 100,000 111,750
-------------
473,125
-------------
INDUSTRIAL & COMMERCIAL -- 9.2%
Business Services -- 5.3%
Allied Waste Industries, Inc. zero coupon 2007*......................... 50,000 30,250
Allied Waste North America, Inc. 10.25% 2006*........................... 100,000 106,750
Joy Technologies, Inc. 10.25% 2003...................................... 1,250,000 1,358,363
Kinder Care Learning Centers, Inc. 9.50% 2009*.......................... 100,000 96,125
Knoll, Inc. 10.88% 2006................................................. 65,000 71,500
Neenah Corp. 11.13% 2007*............................................... 50,000 53,000
Statia Terminals International NV 11.75% 2003*.......................... 50,000 53,375
</TABLE>
- ---------------------
12
<PAGE> 14
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Business Services (continued)
Tokheim Corp. 11.50% 2006............................................... $ 50,000 $ 53,750
United Stationers Supply Co. 12.75% 2005................................ 50,000 55,875
Waste Management, Inc. 8.75% 2018....................................... 500,000 524,495
Machinery -- 0.3%
Alvey Systems, Inc. 11.38% 2003......................................... 100,000 103,500
CLARK Material Handling Co. 10.75% 2006................................. 50,000 52,875
Multi-Industry -- 1.5%
EnviroSource, Inc. 9.75% 2003........................................... 50,000 48,250
Four M Corp. 12.00% 2006................................................ 50,000 50,250
News America Holdings, Inc. 10.13% 2012................................. 500,000 566,034
Transportation -- 2.1%
Ameritruck Distribution Corp. 12.25% 2005............................... 50,000 52,500
Gearbulk Holdings Ltd. 11.25% 2004...................................... 100,000 110,000
Stena Lines AB 10.50% 2005.............................................. 100,000 108,250
Transport Ocean Container Corp. 12.25% 2004............................. 600,000 702,000
-------------
4,197,142
-------------
INFORMATION & ENTERTAINMENT -- 11.7%
Broadcasting & Media -- 9.7%
Affiliated Newspapers Investments, Inc. zero coupon 2006(1)(3).......... 100,000 87,750
Australis Holdings Property Ltd. zero coupon 2002(3).................... 50,000 31,500
Bell Cablemedia PLC zero coupon 2004(3)................................. 75,000 66,938
Cablevision Systems Corp. 9.25% 2005.................................... 100,000 100,500
Chancellor Radio Broadcasting Co. 9.38% 2004............................ 100,000 101,500
Comcast Cable Communications 8.50% 2027*................................ 500,000 503,450
Comcast Corp. 9.38% 2005................................................ 100,000 103,500
Comcast UK Cable Partners Ltd. zero coupon 2007(3)...................... 175,000 129,938
Continental Cablevision, Inc. 9.50% 2013................................ 500,000 560,520
Echostar Satellite Broadcasting Corp. zero coupon 2004(3)............... 100,000 68,000
Heritage Media Corp. 8.75% 2006......................................... 100,000 104,375
Hollinger International Publishing, Inc. 9.25% 2007..................... 75,000 75,375
Lenfest Communications, Inc. 8.38% 2005................................. 100,000 97,500
Millicom International Cellular zero coupon 2006(3)..................... 100,000 73,250
Nextel Communications, Inc. zero coupon 2003(3)......................... 100,000 86,000
Paging Network, Inc. 10.13% 2007........................................ 100,000 96,250
Paramount Communications, Inc. 8.25% 2022............................... 500,000 466,125
Rogers Cablesystems Ltd. 10.00% 2007.................................... 100,000 105,500
Sci Television, Inc. 11.00% 2005........................................ 250,000 265,937
Sinclair Broadcast Group, Inc. 10.00% 2005.............................. 50,000 52,125
Sullivan Broadcasting 10.25% 2005....................................... 100,000 101,750
TCI Satellite Entertainment, Inc. zero coupon 2007*(3).................. 50,000 28,500
Telewest Communications PLC zero coupon 2007(3)......................... 75,000 52,125
TKR Cable, Inc. 10.50% 2007............................................. 250,000 272,498
UIH Australia Pacific, Inc. 14.00% 2006(3).............................. 100,000 56,750
Valassis Inserts, Inc. 9.38% 1999....................................... 500,000 514,804
Viacom, Inc. 8.00% 2006................................................. 150,000 145,875
Young Broadcasting, Inc. 10.13% 2005.................................... 75,000 79,500
Cable -- 0.1%
Diamond Cable Communications PLC zero coupon 2007*(3)................... 100,000 58,625
Entertainment Products -- 0.1%
Cobblestone Golf Group, Inc. 11.50% 2003................................ 50,000 52,500
</TABLE>
---------------------
13
<PAGE> 15
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT (continued)
Leisure & Tourism -- 1.8%
AMF Group, Inc. 12.25% 2006*............................................ $ 200,000 $ 139,750
Courtyard Marriott Ltd. 10.75% 2008..................................... 50,000 53,750
Six Flags Theme Parks, Inc. 12.25% 2005(3).............................. 125,000 127,500
Southwest Airlines Co. 7.38% 2027....................................... 500,000 482,615
-------------
5,342,575
-------------
INFORMATION TECHNOLOGY -- 5.7%
Computers & Business Equipment -- 1.2%
Harris Corp. 10.38% 2018................................................ 500,000 546,135
Electronics -- 1.9%
Advanced Micro Devices, Inc. 11.00% 2003................................ 50,000 55,875
Fairchild Semiconductor Corp. 10.13% 2007*.............................. 50,000 53,250
Figgie International, Inc. 9.88% 1999................................... 750,000 783,750
Telecommunications -- 2.6%
Anixter, Inc. 8.00% 2003................................................ 500,000 507,240
Brooks Fiber Properties, Inc. 10.88% 2006............................... 100,000 68,000
Charter Communications South East L.P. 11.25% 2006...................... 50,000 53,250
Intermedia Communications zero coupon 2006.............................. 100,000 69,000
International CableTel, Inc. zero coupon 2006(3)........................ 100,000 68,000
Mcleod, Inc. zero coupon 2007*(3)....................................... 150,000 89,250
Qwest Communications International, Inc. 10.88% 2007*................... 100,000 107,250
Teleport Communications Group zero coupon 2007(3)....................... 150,000 105,375
Vanguard Cellular Systems, Inc. 9.38% 2006.............................. 100,000 101,000
-------------
2,607,375
-------------
MATERIALS -- 6.0%
Chemicals -- 0.4%
Harris Chemical North America, Inc. 10.25% 2001......................... 100,000 105,250
ISP Holdings, Inc. 9.75% 2002........................................... 50,000 52,500
Royal Oak Mines 11.00% 2006............................................. 50,000 49,875
Forest Products -- 1.3%
Buckeye Cellulose Corp. 9.25% 2008...................................... 100,000 102,500
Owens-Illinois, Inc. 10.50% 2002........................................ 100,000 105,250
Packaging Resources, Inc. 11.63% 2003................................... 50,000 51,875
Pope & Talbot, Inc. 8.38% 2013.......................................... 250,000 227,427
Stone Container Corp. 11.50% 2004....................................... 50,000 52,375
Uniforet, Inc. 11.13% 2006.............................................. 50,000 45,500
Metals & Minerals -- 4.3%
Acme Metals, Inc. zero coupon 2004(3)................................... 50,000 54,500
Echo Bay Mines Ltd. 11.00% 2027......................................... 50,000 50,500
Euramax International PLC 11.25% 2006................................... 50,000 52,500
GS Technologies, Inc. 12.25% 2005....................................... 100,000 109,000
Inco Ltd. 9.60% 2022.................................................... 750,000 816,375
MMI Products, Inc. 11.25% 2007*......................................... 50,000 52,875
Placer Dome, Inc. 8.50% 2045............................................ 750,000 713,355
Ryderson Tull, Inc. 9.13% 2006.......................................... 100,000 103,000
-------------
2,744,657
-------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 2.4%
Foreign Government -- 2.4%
Province of Quebec 13.25% 2014.......................................... 290,000 340,535
Republic of Colombia 7.25% 2003......................................... 250,000 241,033
Republic of South Africa 9.63% 1999..................................... 500,000 528,160
-------------
1,109,728
-------------
</TABLE>
- ---------------------
14
<PAGE> 16
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE -- 3.3%
Real Estate Companies -- 1.1%
Green Tree Financial Corp. 10.25% 2002.................................. $ 450,000 $ 507,488
Real Estate Investment Trusts -- 2.2%
Chelsea GCA Realty, Inc. 7.75% 2001..................................... 150,000 151,460
Price REIT, Inc. 7.50% 2006............................................. 500,000 498,335
Susa Partnership L.P. 8.20% 2017........................................ 250,000 248,902
Tanger Properties Ltd. 8.75% 2001....................................... 85,000 86,168
------------
1,492,353
------------
U.S. GOVERNMENT & AGENCIES -- 12.1%
U.S. Government & Agencies -- 12.1%
Federal Home Loan Mortgage Corp. 6.50% 2012............................. 500,000 487,965
Federal National Mortgage Association 6.50% 2011........................ 1,432,815 1,396,995
Federal National Mortgage Association 8.50% 2005........................ 750,000 780,120
Government National Mortgage Association 8.00% 2026..................... 1,478,802 1,504,681
United States Treasury Bonds Strip zero coupon 2020..................... 6,640,000 1,319,766
------------
5,489,527
------------
UTILITIES -- 3.2%
Electric Utilities -- 2.1%
California Energy, Inc. 10.25% 2004..................................... 150,000 161,250
Israel Electric Corp., Ltd. 7.88% 2026*................................. 350,000 343,658
Tenaga Nasional Bhd 7.50% 2096*......................................... 500,000 465,520
Telephone -- 1.1%
US West Capital Funding, Inc. 7.90% 2027................................ 500,000 495,835
------------
1,466,263
------------
TOTAL BONDS & NOTES (cost $41,301,167).................................. 41,544,489
------------
PREFERRED STOCK -- 2.1% SHARES
---------------------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 0.7%
Broadcasting & Media -- 0.7%
American Radio Systems Corp. 11.38% *................................... 1,024 108,640
K-III Communications Corp. 11.63%....................................... 1,090 117,720
Pegasus Communications Corp. 12.75%..................................... 50 48,750
Sinclair Capital 11.63%*................................................ 500 52,875
------------
327,985
------------
INFORMATION TECHNOLOGY -- 0.3%
Telecommunications -- 0.3%
PanAmSat, L.P. 12.75%................................................... 114 139,612
------------
REAL ESTATE -- 1.1%
Real Estate Investment Trusts -- 1.1%
Highwood Properties, Inc. 8.63%......................................... 500 488,344
------------
TOTAL PREFERRED STOCK (cost $916,870)................................... 955,941
------------
</TABLE>
---------------------
15
<PAGE> 17
<TABLE>
<CAPTION>
WARRANTS -- 0.0%+ SHARES VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 0.0%
Broadcasting & Media -- 0.0%
Australis Holdings Property Ltd.* (cost $0)............................. 50 $ 2
------------
TOTAL INVESTMENT SECURITIES (cost $42,218,037).......................... 42,500,432
------------
PRINCIPAL
SHORT-TERM SECURITIES -- 5.8% AMOUNT
---------------------------------------------------------------------------------------------------
CORPORATE SHORT-TERM NOTES -- 1.2%
Arkla, Inc. 9.20% due 12/18/97.......................................... $ 65,000 65,807
Tele-Communications, Inc. 7.00% due 8/4/97.............................. 200,000 200,202
Time Warner, Inc. 7.45% due 2/1/98...................................... 290,000 291,708
------------
557,717
------------
TIME DEPOSIT -- 4.6%
Cayman Island Time Deposit with State Street Bank & Trust Co.
4.50% due 6/2/97...................................................... 2,075,000 2,075,000
------------
TOTAL SHORT-TERM SECURITIES (cost $2,628,671)........................... 2,632,717
------------
TOTAL INVESTMENTS -- (cost $44,846,708) 99.1% 45,133,149
Other assets less liabilities -- 0.9 408,535
------ ------------
NET ASSETS -- 100.0% $45,541,684
====== ============
</TABLE>
-----------------------------
* Resale restricted to qualified institutional buyers
+ 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
(3) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date
See Notes to Financial Statements
- ---------------------
16
<PAGE> 18
- ---------------------
SUNAMERICA SERIES TRUST
GLOBAL BOND PORTFOLIO INVESTMENT PORTFOLIO -- MAY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(DENOMINATED IN
FOREIGN BONDS & NOTES -- 54.8% LOCAL CURRENCY) VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRALIAN DOLLAR -- 1.2%
Commonwealth of Australia 10.00% 2006................................ 1,000,000 $ 885,429
-----------
DEUTSCHE MARK -- 10.6%
Republic of Germany 6.25% 2006....................................... 2,500,000 1,502,838
Republic of Germany 6.50% 2005....................................... 1,200,000 734,492
Republic of Germany 7.50% 2004....................................... 9,000,000 5,863,612
-----------
8,100,942
-----------
FRENCH FRANC -- 3.6%
Government of France 4.75% 2002...................................... 16,000,000 2,761,888
-----------
ITALIAN LIRA -- 5.9%
Republic of Italy 9.50% 2001......................................... 7,000,000,000 4,487,651
-----------
JAPANESE YEN -- 14.1%
Asian Development Bank 5.00% 2003.................................... 221,000,000 2,172,993
International Bank of Reconstruction & Development 4.50% 2000........ 400,000,000 3,733,362
International Bank of Reconstruction & Development 4.50% 2003........ 350,000,000 3,375,644
International Bank of Reconstruction & Development 6.75% 2001........ 150,000,000 1,531,236
-----------
10,813,235
-----------
POUND STERLING -- 12.9%
United Kingdom Gilt-Edged Bonds 8.00% 2003........................... 5,800,000 9,879,555
-----------
SPANISH PESETA -- 2.2%
Government of Spain 10.15% 2006...................................... 200,000,000 1,702,407
-----------
SWEDISH KRONA -- 4.3%
Kingdom of Sweden 5.50% 2002......................................... 20,000,000 2,508,100
Kingdom of Sweden 6.00% 2005......................................... 6,500,000 796,232
-----------
3,304,332
-----------
TOTAL FOREIGN BONDS & NOTES (cost $42,285,748)....................... 41,935,439
-----------
</TABLE>
---------------------
17
<PAGE> 19
<TABLE>
<CAPTION>
PRINCIPAL
U.S. GOVERNMENT -- 25.0% AMOUNT VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT -- 25.0%
United States Treasury Notes 6.50% 2005.............................. $ 1,500,000 $ 1,485,465
United States Treasury Notes 6.50% 2006.............................. 6,500,000 6,420,765
United States Treasury Notes 7.00% 2006.............................. 7,000,000 7,150,920
United States Treasury Notes 7.88% 2004.............................. 3,800,000 4,074,892
------------
TOTAL U.S. GOVERNMENT (cost $18,843,436)............................. 19,132,042
------------
OPTIONS -- 0.0%
-----------------------------------------------------------------------------------------------------
FRANCE -- 0.0%
Government of France 4.75% Call, exp 7/97, Strike yield 4.85%(1)..... 23,000,000 22,305
Government of France 4.75% Put, exp 7/97, Strike yield 4.85%(1)...... 15,000,000 13,507
------------
TOTAL OPTIONS (cost $47,265)......................................... 35,812
------------
TOTAL INVESTMENT SECURITIES (cost $61,176,449)....................... 61,103,293
------------
SHORT-TERM SECURITIES -- 11.8%
-----------------------------------------------------------------------------------------------------
TIME DEPOSIT -- 11.8%
Euroclear Time Deposit with State Street Bank & Trust Co. 5.56% due
6/2/97 (cost $9,039,000)........................................... 9,039,000 9,039,000
------------
TOTAL INVESTMENTS --
(cost $70,215,449) 91.6% $70,142,293
Other assets less liabilities -- 8.4 6,393,054
------ -----------
NET ASSETS -- 100.0% $76,535,347
====== ===========
</TABLE>
-----------------------------
(1) 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>
*AUD 7,896,000 USD 6,267,450 06/16/97 $ 252,738
AUD 1,487,040 USD 1,171,788 06/16/97 39,047
DEM 12,609,201 USD 7,517,559 08/21/97 96,081
FRF 1,482,000 DEM 439,747 07/22/97 798
FRF 20,331,261 USD 3,555,473 07/22/97 23,300
FRF 16,031,280 USD 2,785,699 07/22/97 566
ITL 7,636,248,252 USD 4,581,108 08/13/97 85,305
JPY 448,156,342 USD 3,907,000 07/24/97 27,728
JPY 389,410,000 USD 3,394,350 07/24/97 23,591
SEK 6,272,000 USD 827,659 06/12/97 18,124
SEK 19,395,689 USD 2,530,728 06/12/97 31,948
*USD 3,635,000 JPY 440,623,432 07/24/97 179,066
*USD 3,907,000 JPY 457,089,698 07/24/97 49,599
---------
827,891
---------
</TABLE>
- ---------------------
18
<PAGE> 20
<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>
DEM 3,199,500 FIM 9,593,829 07/10/97 $ (8,684)
ESP 242,882,705 USD 1,672,976 06/11/97 (7,321)
GBP 9,617,000 USD 15,665,035 08/15/97 (40,651)
*JPY 452,573,530 USD 3,635,000 07/24/97 (282,507)
JPY 1,339,979,560 USD 10,764,358 07/24/97 (834,596)
*USD 1,168,059 AUD 1,486,080 06/16/97 (36,050)
*USD 5,319,589 AUD 6,965,913 06/16/97 (13,363)
*USD 153,000 DEM 257,217 08/21/97 (1,608)
*USD 976,750 JPY 112,838,067 07/24/97 (16)
*USD 2,930,250 JPY 336,492,329 07/24/97 (17,550)
USD 2,207,524 NOK 15,554,438 07/18/97 (17,289)
---------
(1,259,635)
---------
Net Unrealized Depreciation................... $ (431,744)
=========
</TABLE>
-----------------------------
* Represents open forward foreign currency and offsetting open
forward foreign currency contracts that do not have additional
market risk but have continued counterparty settlement risk
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
AUD -- Australian Dollar FRF -- French Franc NOK -- Norwegian Krone
DEM -- Deutsche Mark GBP -- Pound Sterling SEK -- Swedish Krona
ESP -- Spanish Peseta ITL -- Italian Lira USD -- United States Dollar
FIM -- Finnish Markka JPY -- Japanese Yen
</TABLE>
See Notes to Financial Statements
---------------------
19
<PAGE> 21
- ---------------------
SUNAMERICA SERIES TRUST
HIGH-YIELD BOND PORTFOLIO INVESTMENT PORTFOLIO -- MAY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 92.9% AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 13.3%
Automotive -- 3.0%
Collins & Aikman Corp. 11.50% 2006..................................... $1,000,000 $ 1,122,500
Foamex L.P. 11.88% 2004................................................ 2,000,000 2,157,500
Neenah Corp. 11.13% 2007*.............................................. 1,000,000 1,060,000
Housing -- 3.7%
Lifestyle Furnishings International Ltd. 10.88% 2006................... 2,000,000 2,165,000
Nortek, Inc. 9.25% 2007................................................ 2,000,000 2,030,000
Reliant Building Products, Inc. 10.88% 2004*........................... 1,000,000 1,022,500
Retail -- 6.6%
Central Tractor Farm Country, Inc. 10.63% 2007......................... 1,500,000 1,560,000
Commemorative Brands, Inc. 11.00% 2007................................. 1,500,000 1,586,250
Electronic Retailing Systems International zero coupon 2004(1)(2)...... 1,500,000 1,023,750
Eye Care Centers of America, Inc. 12.00% 2003.......................... 2,000,000 2,180,000
Finlay Fine Jewelry Corp. 10.63% 2003.................................. 1,000,000 1,050,000
Specialty Retailers, Inc. 10.00% 2000.................................. 2,000,000 2,090,000
------------
19,047,500
------------
CONSUMER STAPLES -- 4.0%
Food, Beverage & Tobacco -- 2.4%
Grand Union Co. 12.00% 2004............................................ 500,000 395,000
Printpack, Inc. 10.63% 2006............................................ 1,000,000 1,053,750
Specialty Foods Corp. 11.13% 2002...................................... 2,000,000 1,950,000
Household Products -- 1.6%
French Fragrances, Inc. 10.38% 2007*................................... 2,250,000 2,317,500
------------
5,716,250
------------
ENERGY -- 5.1%
Energy Services -- 1.4%
Bellwether Exploration Co. 10.88% 2007................................. 1,500,000 1,560,000
DeepTech International, Inc. 12.00% 2000............................... 500,000 531,875
Energy Sources -- 3.7%
Clark (R&M) Holdings, Inc. zero coupon 2000............................ 3,800,000 2,878,500
Statia Terms International 11.75% 2003*................................ 2,250,000 2,401,875
------------
7,372,250
------------
FINANCE -- 6.0%
Financial Services -- 6.0%
Bankunited Capital Trust 10.25% 2026*.................................. 2,000,000 1,985,000
Cityscape Financial Corp. 12.75% 2004*................................. 1,500,000 1,518,750
Dollar Financial Group, Inc. 10.88% 2006............................... 2,000,000 2,100,000
Eagle Financial Capital Trust 10.00% 2027*............................. 500,000 496,255
Homeside, Inc. 11.25% 2003............................................. 1,299,000 1,493,850
Mego Mortgage Corp. 12.50% 2001........................................ 1,000,000 1,000,000
------------
8,593,855
------------
HEALTHCARE -- 8.0%
Health Services -- 8.0%
Abbey Healthcare Group, Inc. 9.50% 2002................................ 2,000,000 2,070,000
Fresenius Medical Care Capital Trust 9.00% 2006........................ 2,000,000 2,045,000
</TABLE>
- ---------------------
20
<PAGE> 22
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE (continued)
Health Services (continued)
Health O Meter 13.00% 2002(2).......................................... $1,995,000 $ 2,184,525
Integrated Health Services, Inc. 9.50% 2007*........................... 1,000,000 1,027,500
Quorum Health Group, Inc. 8.75% 2005................................... 2,000,000 2,050,000
Tenet Healthcare Corp. 10.13% 2005..................................... 2,000,000 2,180,000
------------
11,557,025
------------
INDUSTRIAL & COMMERCIAL -- 2.5%
Aerospace & Military Technology -- 0.7%
L-3 Communications Corp. 10.38% 2007*.................................. 1,000,000 1,050,000
Machinery -- 0.7%
International Knife and Saw, Inc. 11.38% 2006.......................... 1,000,000 1,057,500
Transportation -- 1.1%
Travelcenters America, Inc. 10.25% 2007*............................... 1,500,000 1,533,750
------------
3,641,250
------------
INFORMATION & ENTERTAINMENT -- 18.6%
Broadcasting & Media -- 5.3%
Benedek Communications Corp. zero coupon 2006(1)....................... 2,000,000 1,150,000
Busse Broadcasting Corp. 11.63% 2000................................... 1,000,000 1,047,500
Grupo Televisa SA 11.88% 2006.......................................... 1,000,000 1,122,500
Jcac, Inc. 10.13% 2006................................................. 1,000,000 1,060,000
Radio One, Inc. 7.00% 2000(1)*......................................... 1,000,000 882,500
Spanish Broadcasting Systems, Inc. 7.50% 1997(1)....................... 2,250,000 2,446,875
Cable -- 7.6%
Bell Cablemedia PLC zero coupon 2005(1)................................ 1,750,000 1,448,125
Comcast UK Cable Partners Ltd. zero coupon 2007(1)..................... 1,000,000 742,500
Echostar Communications Corp. zero coupon 2004(1)...................... 1,375,000 1,134,375
Echostar Satellite Broadcasting Corp. zero coupon 2004(1).............. 1,375,000 935,000
International CableTel, Inc. zero coupon 2005(1)....................... 1,000,000 755,000
Tci Satellite Entertainment, Inc. 10.88% 2007*......................... 1,750,000 1,767,500
Telewest Communications PLC zero coupon 2007........................... 1,500,000 1,042,500
UIH Australia Pacific, Inc. zero coupon 2006(1)........................ 1,000,000 567,500
United International Holdings, Inc. zero coupon 1999................... 2,250,000 1,710,000
Videotron Holdings PLC zero coupon 2005................................ 1,000,000 820,000
Gaming -- 3.6%
California Hotel Finance Corp. 11.00% 2002............................. 1,500,000 1,563,750
Showboat, Inc. 13.00% 2009............................................. 1,000,000 1,160,000
Trump Atlantic City Associates 11.25% 2006............................. 2,500,000 2,450,000
Leisure & Tourism -- 2.1%
Coleman Escrow Corp. zero coupon 2001*................................. 1,500,000 911,250
HMH Properties, Inc. 9.50% 2005........................................ 2,000,000 2,080,000
------------
26,796,875
------------
INFORMATION TECHNOLOGY -- 27.5%
Cellular -- 11.1%
CCPR Services, Inc. 10.00% 2007*....................................... 1,000,000 982,500
Cellular Communications International, Inc. zero coupon 2000(2)........ 3,000,000 2,215,000
Clearnet Communications, Inc. zero coupon 2005(1)...................... 1,000,000 662,500
Comcast Cellular Holdings, Inc. 9.50% 2007*............................ 4,250,000 4,250,000
Dobson Communications Corp. 11.75% 2007*............................... 1,000,000 972,500
Globalstar L.P. 11.38% 2004(2)*........................................ 2,000,000 2,020,000
Intercel, Inc. zero coupon 2006(1)..................................... 1,000,000 590,000
International Wireless Communication zero coupon 2001.................. 1,250,000 701,563
Microcell Telecommunications zero coupon 2006(1)....................... 2,000,000 1,047,500
Occidente Y Caribe Celular SA Class B zero coupon 2004(1).............. 2,000,000 1,460,000
</TABLE>
---------------------
21
<PAGE> 23
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Cellular (continued)
Orbcomm, Global L.P. 14.00% 2004....................................... $1,000,000 $ 1,047,500
Computers & Business Equipment -- 3.1%
Advanced Micro Devices, Inc. 11.00% 2003............................... 3,000,000 3,352,500
Unisys Corp. 11.75% 2004............................................... 1,000,000 1,076,250
Electronics -- 0.4%
Amphenol Corp. 9.88% 2007.............................................. 500,000 512,500
Telecommunications -- 12.9%
Advanced Radio Telecom Corp. 14.00% 2007(2)............................ 1,000,000 1,050,000
American Communications Services zero coupon 2005(1)................... 3,000,000 1,582,500
Colt Telecommunications zero coupon 2006(1)(2)......................... 2,000,000 1,280,000
GST USA, Inc. zero coupon 2005(1)...................................... 1,500,000 877,500
Hyperion Telecommunications, Inc. zero coupon 2003(1).................. 2,500,000 1,334,375
ICG Holdings, Inc. zero coupon 2007(1)................................. 1,000,000 576,250
Ionica PLC zero coupon 2007(1)(2)...................................... 1,750,000 894,687
Ionica PLC 13.50% 2006................................................. 2,500,000 2,618,750
IXC Communications, Inc. 12.50% 2005................................... 1,750,000 1,973,125
Mcleod, Inc. zero coupon 2007(1)*...................................... 1,500,000 898,125
Nextlink Communications 12.50% 2006.................................... 500,000 528,125
RSL Commerce, Ltd. PLC 12.25% 2006..................................... 1,000,000 1,032,500
Teleport Communications Group zero coupon 2007(1)...................... 1,500,000 1,053,750
Teleport Communications Group 9.88% 2006............................... 1,000,000 1,060,000
Viatel, Inc. zero coupon 2005(1)....................................... 2,000,000 1,280,000
Winstar Communications, Inc. zero coupon 2005(1)*...................... 1,000,000 558,750
------------
39,488,750
------------
MATERIALS -- 7.9%
Chemicals -- 0.8%
LaRoche Industries, Inc. 13.00% 2004................................... 1,000,000 1,100,000
Forest Products -- 2.3%
American Pad & Paper Co. 13.00% 2005................................... 650,000 739,375
Stone Container Corp. 11.88% 1998...................................... 1,500,000 1,575,000
Stone Container Corp. 12.25% 2002...................................... 1,000,000 1,022,500
Metals & Minerals -- 4.8%
Algoma Steel, Inc. 12.38% 2005......................................... 1,500,000 1,695,000
Altos Hornos de Mexicos SA 11.88% 2004*................................ 1,000,000 1,062,500
Renco Metals, Inc. 11.50% 2003......................................... 1,500,000 1,590,000
WCI Steel, Inc. 10.00% 2004............................................ 1,500,000 1,545,000
Wells Aluminum Corp. 10.13% 2005*...................................... 1,000,000 1,015,000
------------
11,344,375
------------
TOTAL BONDS & NOTES (cost $131,520,434)................................ 133,558,130
------------
<CAPTION>
COMMON STOCK -- 0.0% SHARES
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 0.0%
Gaming -- 0.0%
Capital Gaming International, Inc.+ (cost $156,260).................... 40,000 1,250
------------
</TABLE>
- ---------------------
22
<PAGE> 24
<TABLE>
<CAPTION>
<S> <C> <C>
PREFERRED STOCK -- 2.0% SHARES VALUE
<CAPTION>
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY -- 1.1%
Telecommunications -- 1.1%
Intermedia Communications, Inc. 13.50%*................................ 150 $ 1,563,750
------------
MATERIALS -- 0.9%
Forest Products -- 0.9%
SDW Holdings Corp. 15.00%(3)*.......................................... 37,000 1,295,000
------------
TOTAL PREFERRED STOCK (cost $2,450,530)................................ 2,858,750
------------
<CAPTION>
WARRANTS -- 0.5%+
---------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER STAPLES -- 0.0%
Household Products -- 0.0%
Chattem, Inc. 6/17/99.................................................. 1,000 3,188
------------
INFORMATION & ENTERTAINMENT -- 0.1%
Cable -- 0.0%
United International Holdings, Inc. 11/15/99........................... 1,750 8,750
Gaming -- 0.1%
Fitzgerald South, Inc. 3/15/99(3)*..................................... 2,000 20,000
------------
28,750
------------
INFORMATION TECHNOLOGY -- 0.4%
Cellular -- 0.1%
Clearnet Communications, Inc. 9/15/05.................................. 3,300 14,025
International Wireless Communication 8/15/01(3)*....................... 1,250 0
Microcell Telecommunications 12/31/97*................................. 8,000 100,000
Microcell Telecommunications 12/31/97*................................. 8,000 5,000
Occidente Y Caribe Celular SA 3/15/04(3)............................... 8,000 0
Telecommunications -- 0.3%
Hyperion Telecommunications, Inc. 4/15/01.............................. 2,500 75,622
Ionica PLC 8/15/2006................................................... 2,500 387,500
------------
582,147
------------
MATERIALS -- 0.0%
Forest Products -- 0.0%
SDW Holdings Corp. 12/15/06(3)*........................................ 3,700 18,500
------------
TOTAL WARRANTS (cost $667,484)......................................... 632,585
------------
TOTAL INVESTMENT SECURITIES (cost $134,794,708)........................ 137,050,715
------------
</TABLE>
---------------------
23
<PAGE> 25
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 1.9% AMOUNT VALUE
<S> <C> <C>
---------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
REPURCHASE AGREEMENT -- 1.9%
Joint Repurchase Agreement Account (Note 3)
(cost $2,798,000).................................................... $2,798,000 $ 2,798,000
-------------
TOTAL INVESTMENTS --
(cost $137,592,708) 97 .3% 139,848,715
Other assets less liabilities -- 2 .7 3,868,842
--
------- ------------
NET ASSETS -- 100 .0% $143,717,557
======= ============
</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
- ---------------------
24
<PAGE> 26
- ---------------------
SUNAMERICA SERIES TRUST
WORLDWIDE HIGH INCOME
PORTFOLIO INVESTMENT PORTFOLIO -- MAY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 80.5% AMOUNT VALUE
<S> <C> <C>
---------------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY -- 1.0%
Retail -- 1.0%
K-Mart Corp. 7.75% 2012........................................... $ 150,000 $ 135,716
K-Mart Corp. 8.38% 2022........................................... 135,000 120,150
Southland Corp. 5.00% 2003........................................ 745,000 626,731
------------
882,597
------------
CONSUMER STAPLES -- 0.3%
Food, Beverage & Tobacco -- 0.3%
RJR Nabisco, Inc. 8.75% 2004...................................... 300,000 303,228
------------
ENERGY -- 2.7%
Energy Services -- 0.3%
Pride Petroleum Services, Inc. 9.38% 2007......................... 240,000 249,300
Energy Sources -- 2.4%
Bridas Corp. 12.50% 1999.......................................... 1,500,000 1,641,000
Nuevo Energy Co. 9.50% 2006....................................... 175,000 182,438
Vintage Petroleum, Inc. 8.63% 2009................................ 445,000 442,218
------------
2,514,956
------------
FINANCE -- 3.6%
Banks -- 0.6%
First Nationwide Holdings, Inc. 9.13% 2003........................ 145,000 149,350
First Nationwide Holdings, Inc. 10.63% 2003....................... 340,000 370,600
Financial Services -- 2.4%
Alps Series 96-1, Class D* 12.75% 2006............................ 149,886 161,128
Amresco, Inc. Series 97-A 10.00% 2004............................. 300,000 301,500
California Lease Trust 8.50% 2017*................................ 250,000 254,688
Dillon Read Structured Finance Corp. Class A 6.66% 2010........... 93,068 82,793
Dillon Read Structured Finance Corp. Class A 7.60% 2007........... 282,539 267,669
Dillon Read Structured Finance Corp. Class A 8.38% 2015........... 625,000 575,606
FMAC Loan Receivables Trust Series 1996-B Class C 7.93% 2018*..... 150,000 127,004
Navistar Financial Corp. 9.00% 2002............................... 105,000 106,181
Riggs Capital Trust 8.88% 2027*................................... 350,000 349,125
Insurance -- 0.6%
Anthem Insurance Cos., Inc. 9.00% 2027*........................... 575,000 582,061
------------
3,327,705
------------
HEALTHCARE -- 0.5%
Health Services -- 0.5%
Tenet Healthcare Corp. 8.63% 2007................................. 450,000 454,500
------------
</TABLE>
---------------------
25
<PAGE> 27
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL -- 1.9%
Aerospace & Military Technology -- 0.4%
Jet Equipment Trust 11.79% 2013*.................................. $ 300,000 $ 374,472
Business Services -- 1.1%
Borg Warner Security Corp. 9.63% 2007*............................ 375,000 378,750
Norcal Waste Systems, Inc. Series B 13.25% 1997(1)................ 615,000 679,575
Electrical Equipment -- 0.4%
Digital Equipment Corp. 8.63% 2012................................ 335,000 326,709
------------
1,759,506
------------
INFORMATION & ENTERTAINMENT -- 9.0%
Broadcasting & Media -- 5.5%
Grupo Televisa SA de CV zero coupon 2008(2)....................... 950,000 672,125
Nextel Communications, Inc. zero coupon 2004(2)................... 955,000 725,800
Paramount Communications, Inc. 8.25% 2022......................... 250,000 236,327
Qwest Communications International, Inc. 10.88% 2007*............. 300,000 321,375
TCI Satellite Entertainment, Inc. zero coupon 2007*(2)............ 1,050,000 605,063
Tele-Communications, Inc. 8.75% 2023.............................. 125,000 121,254
Tele-Communications, Inc. 9.25% 2023.............................. 605,000 609,519
Tevecap SA 12.63% 2004............................................ 1,000,000 1,066,250
Viacom, Inc. 8.00% 2006........................................... 800,000 782,000
Cable -- 1.4%
Cablevision Systems Corp. 9.88% 2006.............................. 655,000 677,925
Echostar Satellite Broadcasting Corp. zero coupon 2004*(2)........ 460,000 312,800
Rogers Cablesystems Ltd. Series B 10.00% 2005..................... 295,000 316,388
Gaming -- 1.2%
Grand Casino, Inc. 10.13% 2003.................................... 680,000 705,500
Station Casinos, Inc. 9.75% 2007*................................. 400,000 388,000
Leisure & Tourism -- 0.9%
Courtyard Marriott Ltd. 10.75% 2008............................... 175,000 187,687
Host Marriot Corp. Acquisition Properties, Inc. Class B 9.00%
2007............................................................ 180,000 181,800
Host Marriott Travel Plazas Class B 9.50% 2005.................... 430,000 449,350
------------
8,359,163
------------
INFORMATION TECHNOLOGY -- 6.5%
Broadcasting & Media -- 0.7%
Globalstar L.P./Capital 11.38% 2004*(3)........................... 660,000 661,649
Cellular -- 1.1%
Comcast Cellular Holdings, Inc. 9.50% 2007*....................... 525,000 526,969
Occidente Y Caribe Celular SA Class B zero coupon 2004(2)......... 600,000 444,000
Rogers Communications, Inc. 9.13% 2006............................ 90,000 88,650
Electronics -- 0.4%
Advanced Micro Devices, Inc. 11.00% 2003.......................... 325,000 361,969
Telecommunications -- 4.3%
Brooks Fiber Properties, Inc. zero coupon 2006(2)................. 475,000 323,000
Brooks Fiber Properties, Inc. zero coupon 2006*(2)................ 650,000 419,250
Brooks Fiber Properties, Inc. 10.00% 2007*........................ 75,000 75,563
Consorcio Ecuatoriano de Telecomunicaciones 14.00% 2002*.......... 1,600,000 1,676,000
Dial Callable Communications, Inc. zero coupon 2004(2)............ 600,000 486,000
IXC Communications, Inc. 12.50% 2005.............................. 280,000 315,700
Teleport Communications Group zero coupon 2007(2)................. 970,000 681,425
------------
6,060,175
------------
</TABLE>
- ---------------------
26
<PAGE> 28
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS -- 5.8%
Chemicals -- 0.7%
ISP Holdings, Inc. Class B 9.00% 2003............................. $ 615,000 $ 628,069
Forest Products -- 1.7%
Gaylord Container Corp. 11.50% 2001............................... 350,000 368,375
Grupo International Durango SA de CV 12.63% 2003.................. 500,000 560,000
S.D. Warren Co. 12.00% 2004....................................... 215,000 239,725
TLC Beatrice International Holdings, Inc. 11.50% 2005............. 381,000 423,862
Metals & Minerals -- 3.4%
Acindar Industria Argentina de Aceros SA 11.25% 2004.............. 1,500,000 1,561,875
Acindar Industria Argentina de Aceros SA 11.75% 1997(1)........... 1,500,000 1,558,125
------------
5,340,031
------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 48.7%
Foreign Government -- 48.7%
Brazil Credit Linked Note zero coupon 1999(2)..................... 4,000,000 3,370,400
Buenos Aires Province Euro Medium Term Note 11.25% 2007........... 1,900,000 2,033,000
Federal Republic of Brazil 6.94% 1997(1).......................... 1,000,000 825,000
Federative Republic of Brazil 4.50% 1998(4)....................... 4,482,600 3,552,461
Ivory Coast FLIRB*................................................ 3,600,000 1,111,500
Jamaica Government Bonds 12.00% 1999.............................. 2,000,000 2,000,000
Jordan Discount Bonds Loan 6.50% 1999*............................ 1,412,500 1,165,313
Republic of Argentina 11.75% 2007*................................ 3,500,000 3,815,000
Republic of Brazil 6.94% 1997(1).................................. 2,000,000 1,747,500
Republic of Bulgaria 2.25% 1998(1)................................ 1,000,000 521,250
Republic of Bulgaria 6.56% 1997(1)................................ 5,750,000 3,052,273
Republic of Bulgaria. 6.56% 1997(1)............................... 1,000,000 690,000
Republic of Ecuador 3.25% 1998(4)................................. 1,614,465 1,039,312
Republic of Ecuador 3.50% 1999.................................... 250,000 113,438
Republic of Ecuador 6.44% 1997(1)................................. 3,000,000 2,092,500
Republic of Peru 3.25% 1999*...................................... 7,300,000 4,215,750
Republic of Venezuela 6.38% 2020.................................. 500,000 432,500
Republic of Venezuela 6.75% 1997(1)............................... 1,428,570 1,302,676
Republic of Venezuela 6.81% 1997(1)............................... 500,000 431,875
Republic of Venezuela 6.75% 1997(1)............................... 3,000,000 2,731,874
Russia Federation Ministry Finance 3.00% 2003 GDR*................ 1,200,000 759,000
Russia Principal Note(4).......................................... 5,000,000 3,118,750
United Mexican States 11.38% 2016................................. 3,000,000 3,276,000
United Mexican States 11.50% 2026................................. 1,500,000 1,665,000
------------
45,062,372
------------
UTILITIES -- 0.5%
Electric Utilities -- 0.5%
Cleveland Electric Illuminating Co. 8.38% 2011.................... 95,000 93,763
Midland Cogeneration 10.33% 2002.................................. 283,386 303,224
Midland Cogeneration, Series C-91 10.33% 2002..................... 17,090 18,286
Midland Funding Corp. 11.75% 2005................................. 40,000 45,718
------------
460,991
------------
TOTAL BONDS & NOTES (cost $71,271,908)............................ 74,525,224
------------
</TABLE>
---------------------
27
<PAGE> 29
<TABLE>
<CAPTION>
PREFERRED STOCK -- 2.3% SHARES VALUE
<S> <C> <C>
---------------------------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 2.3%
Broadcasting & Media -- 2.3%
Sinclair Capital 11.63%*.......................................... 4,740 $ 502,440
TCI Pacific Communications, Inc. 5.00%............................ 3,855 390,801
Time Warner, Inc. Series M 10.25%................................. 1,096 1,211,080
------------
TOTAL PREFERRED STOCK (cost $1,982,651)........................... 2,104,321
------------
<CAPTION>
WARRANTS -- 0.0%+
---------------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY -- 0.0%
Cellular -- 0.0%
Occidente Y Caribe Celular SA 3/15/04............................. 2,400 0
------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 0.0%
Foreign Government -- 0.0%
Republic of Venezuela 4/15/20..................................... 7,140 0
------------
TOTAL WARRANTS (cost $15)......................................... 0
------------
<CAPTION>
PRINCIPAL
LOAN AGREEMENTS -- 7.9% AMOUNT
---------------------------------------------------------------------------------------------------------
<S> <C> <C>
LOAN AGREEMENTS -- 7.9%
Algeria Loan Agreement Trust...................................... $ 3,750,000 3,079,688
Gabon Loans....................................................... 3,000,000 2,310,000
Ivory Coast Caisse Autonome+......................................(DEM) 1,445,000 317,052
Ivory Coast Caisse Autonome+......................................(FRF) 16,000,000 1,129,083
Russia BFEA+...................................................... $ 600,000 516,750
------------
TOTAL LOAN AGREEMENTS (cost $7,274,982)........................... 7,352,573
------------
TOTAL INVESTMENT SECURITIES (cost $80,529,556).................... 83,982,118
------------
<CAPTION>
SHORT TERM SECURITIES -- 4.0%
---------------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 2.5%
Companhia Brasileira de Projertos 12.50% 1997..................... 800,000 818,000
Companhia Brasileira de Projertos 12.50% 1997*.................... 500,000 511,250
Empresas La Moderna SA 10.25% 1997................................ 1,000,000 1,011,250
------------
2,340,500
------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 1.5%
Ecuador Stripped Discount Note 6.44% 1997......................... 2,500,000 1,343,225
------------
TOTAL SHORT-TERM SECURITIES (cost $3,578,229)..................... 3,683,725
------------
<CAPTION>
REPURCHASE AGREEMENT -- 7.7%
---------------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 7.7%
Agreement with State Street Bank & Trust Co., bearing interest of
5.00% dated 5/30/97, to be repurchased 6/2/97 in the amount of
$7,139,974 and collateralized by $4,990,000 U.S. Treasury Notes
11.25% due 2/15/15 (cost $7,137,000)............................ 7,137,000 7,137,000
------------
TOTAL INVESTMENTS --
(cost $91,244,785) 102.4% 94,802,843
Liabilities in excess of other assets -- (2.4) (2,243,967)
------- ------------
NET ASSETS -- 100.0% $ 92,558,876
======= ============
</TABLE>
- ---------------------
28
<PAGE> 30
-----------------------------
+ Non-income producing security
* Resale restricted to qualified institutional buyers
(1) Variable rate security; rate as of May 31, 1997
(2) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date
(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
DEM -- Deutsche Mark
FRF -- French Franc
GDR -- Global Depository Receipt
Allocation of investments as a percentage of net assets by country
as of May 31, 1997:
<TABLE>
<S> <C>
United States 68.8%
Brazil 9.2
Mexico 7.8
Argentina 5.2
Ecuador 3.5
Venezuela 2.3
Jamaica 2.2
Russia 1.4
Bulgaria 1.3
Canada 0.4
Germany 0.3
-----
102.4%
=====
</TABLE>
See Notes to Financial Statements
---------------------
29
<PAGE> 31
- ---------------------
SUNAMERICA SERIES TRUST
SUNAMERICA BALANCED
PORTFOLIO INVESTMENT PORTFOLIO -- MAY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 67.4% SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY -- 2.0%
Automotive -- 0.5%
General Motors Corp. .................................................. 2,000 $ 114,500
Housing -- 0.4%
Dal-Tile International, Inc.+.......................................... 7,000 112,000
Retail -- 1.1%
CVS Corp. ............................................................. 4,000 191,500
Wal-Mart Stores, Inc. ................................................. 3,000 89,250
-------------
507,250
-------------
CONSUMER STAPLES -- 1.8%
Food, Beverage & Tobacco -- 1.4%
Coca-Cola Co. ......................................................... 2,000 136,500
Philip Morris Cos., Inc. .............................................. 5,000 220,000
Household Products -- 0.4%
Scotts Co., Class A+................................................... 3,000 87,750
-------------
444,250
-------------
ENERGY -- 3.0%
Energy Services -- 3.0%
Mobil Corp. ........................................................... 2,000 279,750
Royal Dutch Petroleum Co. ADR.......................................... 1,000 195,250
Texaco, Inc. .......................................................... 2,500 272,813
-------------
747,813
-------------
FINANCE -- 13.9%
Banks -- 5.9%
Banc One Corp. ........................................................ 5,000 216,250
Barnett Banks, Inc. ................................................... 2,000 105,250
Chase Manhattan Corp. ................................................. 3,000 283,500
Fleet Financial Group, Inc. ........................................... 3,000 183,375
Hibernia Corp., Class A................................................ 20,000 265,000
NationsBank Corp. ..................................................... 4,000 235,500
Summit Bancorp......................................................... 4,000 197,500
Financial Services -- 4.4%
American Express Co. .................................................. 4,000 278,000
Capital One Financial Corp. ........................................... 3,000 96,375
ContiFinancial Corp.+.................................................. 5,000 168,750
Dean Witter, Discover & Co. ........................................... 2,540 104,775
Federal National Mortgage Association.................................. 2,000 87,250
Morgan Stanley Group, Inc. ............................................ 3,000 202,500
Travelers Group, Inc. ................................................. 3,000 164,625
</TABLE>
- ---------------------
30
<PAGE> 32
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance -- 3.6%
Aetna, Inc. ........................................................... 2,000 $ 202,000
Allstate Corp. ........................................................ 3,000 220,875
Hartford Life, Inc. ................................................... 5,000 167,500
ReliaStar Financial Corp. ............................................. 5,000 320,625
-------------
3,499,650
-------------
HEALTHCARE -- 13.0%
Drugs -- 8.1%
Amgen, Inc.+........................................................... 4,000 267,500
Biogen, Inc.+.......................................................... 3,000 99,563
Bristol-Myers Squibb Co. .............................................. 3,000 220,125
IDEC Pharmaceuticals Corp.+............................................ 5,000 112,500
Ligand Pharmaceuticals, Inc.+.......................................... 10,000 118,750
Lilly (Eli) & Co. ..................................................... 2,000 186,000
Merck & Co., Inc. ..................................................... 2,500 224,687
Pfizer, Inc. .......................................................... 2,000 205,750
Schering-Plough Corp. ................................................. 2,000 181,500
Teva Pharmaceutical Industries Ltd. ADR................................ 2,100 126,000
Warner-Lambert Co. .................................................... 3,000 302,250
Health Services -- 2.3%
Apria Healthcare Group, Inc.+.......................................... 10,000 180,000
Chiron Corp.+.......................................................... 6,000 113,250
Columbia/HCA Healthcare Corp. ......................................... 3,000 109,875
United Healthcare Corp. ............................................... 3,000 169,500
Medical Products -- 2.6%
Allergan, Inc. ........................................................ 2,000 59,250
Cephalon, Inc.+........................................................ 5,000 62,500
Johnson & Johnson Co. ................................................. 3,000 179,625
Neurex Corp.+.......................................................... 10,000 146,250
Novartis AG ADR........................................................ 3,000 205,312
-------------
3,270,187
-------------
INDUSTRIAL & COMMERCIAL -- 6.5%
Aerospace & Military Technology -- 2.9%
AlliedSignal, Inc. .................................................... 3,000 230,250
Boeing Co. ............................................................ 2,084 219,341
United Technologies Corp. ............................................. 3,400 273,275
Business Services -- 1.6%
American Disposal Services, Inc.+...................................... 5,000 100,000
Republic Industries, Inc.+............................................. 5,000 120,312
USA Waste Services, Inc.+.............................................. 5,000 181,250
Electrical Equipment -- 0.7%
General Electric Co.................................................... 3,000 181,125
Machinery -- 0.8%
Deere & Co. ........................................................... 4,000 204,500
Multi-Industry -- 0.5%
Rockwell International Corp. .......................................... 2,000 129,000
-------------
1,639,053
-------------
INFORMATION & ENTERTAINMENT -- 5.5%
Broadcasting & Media -- 1.5%
AirTouch Communications, Inc.+......................................... 5,000 139,375
Time Warner, Inc. ..................................................... 5,000 232,500
</TABLE>
---------------------
31
<PAGE> 33
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- (continued)
Leisure & Tourism -- 4.0%
Carnival Corp. Class A................................................. 3,000 $ 114,000
Delta Air Lines, Inc. ................................................. 4,000 375,000
HFS, Inc.+............................................................. 5,000 269,375
McDonald's Corp. ...................................................... 5,000 251,250
-------------
1,381,500
-------------
INFORMATION TECHNOLOGY -- 13.9%
Communication Equipment -- 2.4%
Ericsson (L.M.) Telecommunications Co., Class B ADR+................... 6,000 213,750
Nokia Corp., Class A ADR............................................... 3,000 198,000
Tellabs, Inc.+......................................................... 4,000 201,000
Computers & Business Equipment -- 5.4%
Compaq Computer Corp.+................................................. 2,000 216,500
Dell Computer Corp. ................................................... 3,000 337,500
Gateway 2000, Inc.+.................................................... 2,000 132,750
Hewlett-Packard Co. ................................................... 2,000 103,000
Honeywell, Inc. ....................................................... 3,000 218,250
International Business Machines Corp. ................................. 4,000 346,000
Electronics -- 4.3%
Intel Corp. ........................................................... 1,500 227,250
Motorola, Inc. ........................................................ 10,000 663,750
Texas Instruments, Inc. ............................................... 2,000 179,750
Software -- 1.0%
Microsoft Corp.+ ...................................................... 2,000 248,000
Telecommunications -- 0.8%
Lucent Technologies, Inc. ............................................. 3,324 211,489
-------------
3,496,989
-------------
MATERIALS -- 6.2%
Chemicals -- 2.1%
du Pont (E.I.) de Nemours & Co. ....................................... 1,500 163,313
Monsanto Co. .......................................................... 6,000 264,000
Morton International, Inc. ............................................ 3,000 96,750
Forest Products -- 1.5%
International Paper Co. ............................................... 5,000 240,000
Owens-Illinois, Inc.+.................................................. 5,000 154,375
Metals & Minerals -- 2.6%
Crown, Cork & Seal Co., Inc. .......................................... 3,000 174,750
Martin Marietta Materials, Inc. ....................................... 4,000 115,000
Aluminum Co. of America................................................ 5,000 368,125
-------------
1,576,313
-------------
REAL ESTATE -- 0.3%
Real Estate Investment Trusts -- 0.3%
Westfield America, Inc................................................. 5,000 76,250
-------------
UTILITIES -- 1.3%
Gas & Pipeline Utilities -- 0.6%
U.S. Filter Corp.+..................................................... 5,000 157,500
</TABLE>
- ---------------------
32
<PAGE> 34
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Telephone -- 0.7%
GTE Corp. ............................................................. 4,200 $ 185,325
-------------
342,825
-------------
TOTAL COMMON STOCK (cost $15,610,046).................................. 16,982,080
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 19.1% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 2.9%
Automotive -- 2.9%
Chrysler Corp. 7.45% 2027.............................................. $ 750,000 724,545
------------
U.S. GOVERNMENT -- 16.2%
U.S. Treasury Bonds & Notes -- 16.2%
United States Treasury Notes 6.25% 2002................................ 500,000 494,845
United States Treasury Notes 6.25% 2007................................ 750,000 729,375
United States Treasury Notes 6.50% 2006................................ 1,000,000 987,810
United States Treasury Notes 6.63% 2002................................ 250,000 251,093
United States Treasury Notes 6.63% 2002................................ 500,000 502,185
United States Treasury Notes 6.63% 2007................................ 500,000 498,515
United States Treasury Bonds 6.63% 2027................................ 650,000 626,236
------------
4,090,059
------------
TOTAL BONDS & NOTES (cost $4,850,894).................................. 4,814,604
------------
TOTAL INVESTMENT SECURITIES (cost $20,460,940)......................... 21,796,684
------------
<CAPTION>
REPURCHASE AGREEMENT -- 15.5%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 15.5%
Joint Repurchase Agreement Account (Note 3)
(cost $3,891,000).................................................... 3,891,000 3,891,000
------------
TOTAL INVESTMENTS --
(cost $24,351,940) 102.0% 25,687,684
Liabilities in excess of other assets -- (2.0) (504,900)
------ ------------
NET ASSETS -- 100.0% $25,182,784
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
33
<PAGE> 35
- ---------------------
SUNAMERICA SERIES TRUST
BALANCED/PHOENIX INVESTMENT
COUNSEL PORTFOLIO INVESTMENT PORTFOLIO -- MAY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 54.7% SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY -- 4.4%
Apparel & Textiles -- 1.0%
NIKE, Inc. Class B ................................................... 13,350 $ 760,950
Retail -- 3.4%
CVS Corp. ............................................................ 8,000 383,000
Home Depot, Inc. ..................................................... 6,500 409,500
Lowe's Cos., Inc. .................................................... 9,300 366,188
Safeway, Inc.+ ....................................................... 15,000 675,000
Staples, Inc.+ ....................................................... 43,550 958,100
-----------
3,552,738
-----------
CONSUMER STAPLES -- 6.7%
Food, Beverage & Tobacco -- 2.3%
PepsiCo, Inc. ........................................................ 30,000 1,102,500
Philip Morris Cos., Inc. ............................................. 18,500 814,000
Household Products -- 4.4%
Colgate-Palmolive Co. ................................................ 19,000 1,178,000
Gillette Co. ......................................................... 13,600 1,208,700
Kimberly-Clark Corp. ................................................. 10,400 521,300
Procter & Gamble Co. ................................................. 4,800 661,800
-----------
5,486,300
-----------
ENERGY -- 6.7%
Energy Services -- 5.5%
Baker Hughes, Inc. ................................................... 10,800 405,000
Exxon Corp. .......................................................... 30,100 1,783,425
Halliburton Co. ...................................................... 10,000 773,750
Noble Drilling Corp.+ ................................................ 15,200 330,600
Royal Dutch Petroleum Co. ADR ........................................ 2,100 410,025
Schlumberger Ltd. .................................................... 4,000 476,500
Transocean Offshore, Inc. ............................................ 4,250 293,250
Energy Sources -- 1.2%
Anadarko Petroleum Corp. ............................................. 6,300 396,900
Columbia Gas Systems, Inc. ........................................... 3,200 206,000
ENSCO International, Inc.+ ........................................... 7,600 379,050
-----------
5,454,500
-----------
FINANCE -- 6.1%
Banks -- 2.7%
Citicorp.............................................................. 6,600 754,875
Mellon Bank Corp. .................................................... 8,000 700,000
NationsBank Corp. .................................................... 13,000 765,375
Financial Services -- 1.6%
American Express Co. ................................................. 2,200 152,900
Franklin Resources, Inc. ............................................. 6,900 446,775
MBNA Corp. ........................................................... 7,350 248,981
Price (T. Rowe) Associates, Inc. ..................................... 8,850 435,863
</TABLE>
- ---------------------
34
<PAGE> 36
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance -- 1.8%
Allstate Corp. ....................................................... 11,300 $ 831,962
Hartford Financial Services Group, Inc. .............................. 8,400 655,200
-----------
4,991,931
-----------
HEALTHCARE -- 10.1%
Drugs -- 4.6%
Amgen, Inc.+.......................................................... 13,900 929,562
Bristol-Myers Squibb Co. ............................................. 13,000 953,875
Lilly (Eli) & Co. .................................................... 2,900 269,700
Merck & Co., Inc. .................................................... 8,700 781,913
Pfizer, Inc. ......................................................... 8,000 823,000
Health Services -- 1.1%
Columbia/HCA Healthcare Corp. ........................................ 24,300 889,987
Medical Products -- 4.4%
Abbott Laboratories, Inc. ............................................ 8,800 554,400
Baxter International, Inc. ........................................... 16,300 859,825
Boston Scientific Corp.+.............................................. 15,697 837,827
HBO & Co. ............................................................ 9,000 577,125
Johnson & Johnson Co. ................................................ 13,300 796,338
-----------
8,273,552
-----------
INDUSTRIAL & COMMERCIAL -- 5.9%
Aerospace & Military Technology -- 0.5%
United Technologies Corp. ............................................ 5,000 401,875
Business Services -- 0.8%
Cardinal Health, Inc. ................................................ 7,700 448,525
Philip Services Corp.+................................................ 15,200 222,300
Electrical Equipment -- 1.5%
General Electric Co. ................................................. 20,000 1,207,500
Machinery -- 2.0%
Deere & Co. .......................................................... 7,100 362,987
Perkin-Elmer Corp. ................................................... 17,300 1,314,800
Multi-Industry -- 0.8%
Tyco International Ltd. .............................................. 10,300 654,050
Transportation -- 0.3%
Tidewater, Inc. ...................................................... 5,800 244,325
-----------
4,856,362
-----------
INFORMATION & ENTERTAINMENT -- 2.5%
Broadcasting & Media -- 1.2%
Gannett Co., Inc. .................................................... 4,300 397,750
New York Times Co. Class A ........................................... 7,500 345,469
Time Warner, Inc. .................................................... 4,900 227,850
Leisure & Tourism -- 1.3%
Disney (Walt) Co. .................................................... 4,600 376,625
HFS, Inc.+............................................................ 13,450 724,619
-----------
2,072,313
-----------
INFORMATION TECHNOLOGY -- 9.2%
Communication Equipment -- 1.9%
Ascend Communications, Inc.+.......................................... 17,250 961,687
Lucent Technologies, Inc. ............................................ 8,900 566,263
</TABLE>
---------------------
35
<PAGE> 37
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Computers & Business Equipment -- 1.2%
Honeywell, Inc. ...................................................... 5,200 $ 378,300
International Business Machines Corp. ................................ 6,800 588,200
Electronics -- 3.0%
Altera Corp. ......................................................... 3,000 159,000
Intel Corp. .......................................................... 9,430 1,428,645
Micron Technology, Inc................................................ 7,200 306,000
Philips Electronics NV ADR ........................................... 2,700 151,200
Sundstrand Corp. ..................................................... 3,900 194,025
Texas Instruments, Inc. .............................................. 2,600 233,675
Software -- 3.1%
Cisco Systems, Inc.+ ................................................. 9,700 657,175
Microsoft Corp. ...................................................... 15,000 1,860,000
-----------
7,484,170
-----------
MATERIALS -- 0.5%
Chemicals -- 0.5%
Monsanto Co. ......................................................... 3,800 167,200
Praxair, Inc. ........................................................ 5,100 268,388
-----------
435,588
-----------
REAL ESTATE -- 0.6%
Real Estate Investment Trusts -- 0.6%
Crescent Real Estate Equities......................................... 5,900 160,775
Redwood Trust Inc. ................................................... 6,000 342,750
-----------
503,525
-----------
UTILITIES -- 2.0%
Gas & Pipeline Utilities -- 0.6%
U.S. Filter Corp.+.................................................... 14,200 447,300
Telephone -- 1.4%
Ameritech Corp. ...................................................... 2,500 163,750
Bell Atlantic Corp. .................................................. 9,700 679,000
SBC Communications, Inc. ............................................. 5,500 321,750
-----------
1,611,800
-----------
TOTAL COMMON STOCK (cost $40,816,332)................................. 44,722,779
-----------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 33.9% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 3.8%
Financial Services -- 3.8%
Airplane Pass Through Trust 10.88% 2019............................... $ 100,000 111,421
APP International Finance Co. 11.75% 2005............................. 185,000 199,338
Astra Over Seas Finance BV 8.75% 2003*................................ 115,000 116,026
CS First Boston Mortgage Securities Corp. 7.18% 2027(1)............... 300,000 296,625
DLJ Mortgage Acceptance Corp. 7.58% 2028*............................. 100,000 102,344
First Union-Lehman Brothers Commercial Mortgage Trust 7.43% 2007...... 140,000 141,181
Fleetwood Credit Grantor Trust 6.90% 2012............................. 85,821 85,987
GE Capital Mortgage Services, Inc. 7.25% 2026......................... 297,510 288,561
Nationslink Funding Corp. 7.69% 2005.................................. 250,000 255,820
Residential Asset Securitization Trust 8.00% 2026..................... 255,832 258,190
</TABLE>
- ---------------------
36
<PAGE> 38
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Residential Funding Mortgage Securities 6.75% 2011.................... $ 286,296 $ 278,244
Residential Funding Mortgage Securities 7.10% 2026.................... 200,000 192,578
Residential Funding Mortgage Securities 7.25% 2026.................... 296,984 287,796
Resolution Trust Corp. 6.80% 2027..................................... 188,590 180,546
Structured Asset Securities Corp. 8.00% 2026.......................... 300,000 298,734
-----------
3,093,391
-----------
INFORMATION TECHNOLOGY -- 0.4%
Electronics -- 0.4%
ADT Operations, Inc. zero coupon 2010................................. 400,000 329,000
-----------
MATERIALS -- 0.5%
Forest Products -- 0.5%
Buckeye Cellulose Corp. 8.50% 2005.................................... 300,000 297,000
Buckeye Cellulose Corp. 9.25% 2008.................................... 100,000 102,500
-----------
399,500
-----------
MUNICIPAL BONDS -- 1.5%
Municipal Bonds -- 1.5%
Kern County California Pension Obligation 7.26% 2014.................. 220,000 213,052
Long Beach California Pension Obligation 6.87% 2006................... 30,000 29,178
Miami Beach Florida Special Obligation 8.60% 2021..................... 430,000 449,875
Newport News 7.05% 2025............................................... 250,000 228,047
Orange County California Pension Obligation 7.62% 2008................ 160,000 162,264
San Bernardino County California Financing Authority 6.87% 2008....... 15,000 14,556
San Bernardino County California Financing Authority 6.94% 2009....... 35,000 33,908
University Miami Florida Exchange Revenue 7.65% 2020.................. 80,000 79,987
Ventura County California Pension 6.54% 2005.......................... 30,000 28,528
-----------
1,239,395
-----------
NON-U.S. GOVERNMENT OBLIGATIONS -- 2.8%
Foreign Government -- 2.8%
Columbia Republic 7.63% 2007.......................................... 300,000 288,420
Compania Sud Americana 7.38% 2003..................................... 50,000 49,071
Federative Republic of Brazil 5.25% 2024(2)........................... 300,000 198,000
Federative Republic of Brazil 6.88% 2024(2)........................... 270,000 223,762
Republic of Argentina 5.25% 2023(2)................................... 475,000 320,625
Republic of Argentina 6.38% 2023(2)................................... 295,000 252,225
Republic of Venezuela 6.44% 2020...................................... 250,000 215,937
Republic of Venezuela (Oil Warrants Attached) 6.75% 2020.............. 250,000 189,063
United Mexican States zero coupon 2019................................ 250,000 230,469
United Mexican States 6.25% 2019...................................... 300,000 222,750
United Mexican States 7.88% 2001*..................................... 100,000 100,745
-----------
2,291,067
-----------
REAL ESTATE -- 0.3%
Real Estate Companies -- 0.3%
Green Tree Financial Corp. 7.40% 2027................................. 125,000 125,566
Green Tree Financial Corp. 7.60% 2027................................. 125,000 124,766
-----------
250,332
-----------
U.S. GOVERNMENT & AGENCIES -- 24.6%
U.S. Government & Agencies -- 24.6%
Government National Mortgage Association 6.50% 2023................... 259,456 247,700
Government National Mortgage Association 6.50% 2026................... 332,726 314,736
United States Treasury Bonds Strip zero coupon 2022................... 13,800,000 2,322,954
United States Treasury Bonds 6.00% 2026............................... 335,000 294,854
United States Treasury Bonds 7.63% 2025............................... 150,000 161,695
</TABLE>
---------------------
37
<PAGE> 39
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT & AGENCIES (continued)
United States Treasury Notes 5.75% 2000............................... $ 350,000 $ 343,109
United States Treasury Notes 6.38% 2000............................... 3,500,000 3,501,645
United States Treasury Notes 6.50% 2002............................... 5,800,000 5,797,274
United States Treasury Notes 6.50% 2005............................... 1,450,000 1,437,312
United States Treasury Notes 6.50% 2006............................... 3,895,000 3,847,520
United States Treasury Notes 6.75% 2000............................... 1,200,000 1,212,192
United States Treasury Notes 6.88% 2000............................... 450,000 455,976
United States Treasury Notes 7.50% 2005............................... 200,000 210,282
-----------
20,147,249
-----------
TOTAL BONDS & NOTES (cost $27,627,074)................................ 27,749,934
-----------
TOTAL INVESTMENT SECURITIES (cost $68,443,406)........................ 72,472,713
-----------
SHORT-TERM SECURITIES -- 18.2%
----------------------------------------------------------------------------------------------------
CORPORATE SHORT-TERM NOTES -- 15.5%
AT&T Co. 5.40% due 6/2/97............................................. 3,740,000 3,739,439
Ciesco L.P. 5.60% due 6/16/97......................................... 1,060,000 1,057,527
CXC, Inc. 5.65% due 6/2/97............................................ 1,450,000 1,449,772
Enterprise Capital Funding Corp. 5.54% due 7/7/97..................... 2,815,000 2,799,405
Pfizer, Inc. 5.50% due 6/2/97......................................... 880,000 879,865
Preferred Receivables Funding 5.58% due 6/12/97....................... 1,000,000 998,295
Private Export Funding Corp. 5.50% due 6/18/97........................ 600,000 598,442
Private Export Funding Corp. 5.60% due 7/28/97........................ 1,000,000 991,133
Shell Oil Co. 5.48% due 6/26/97....................................... 200,000 199,239
-----------
12,713,117
-----------
FEDERAL AGENCY OBLIGATIONS -- 1.2%
Federal Home Loan Mortgage Discount Notes 5.49% due 6/13/97........... 620,000 618,866
Federal National Mortgage Association Discount Notes 5.46% due
6/16/97............................................................. 370,000 369,158
-----------
988,024
-----------
U.S. GOVERNMENT -- 1.5%
United States Treasury Bills 4.90% due 7/17/97........................ 1,185,000 1,177,580
-----------
TOTAL SHORT-TERM SECURITIES (cost $14,878,721)........................ 14,878,721
-----------
TOTAL INVESTMENTS --
(cost $83,322,127) 106.8% 87,351,434
Total written call options -- 0.0 (13,406)
Liabilities in excess of other assets -- (6.8) (5,522,559)
------- -----------
NET ASSETS -- 100.0% $81,815,469
======= ===========
</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 May 31, 1997
ADR -- American Depository Receipt
<TABLE>
<CAPTION>
OPEN COVERED WRITTEN CALL OPTIONS
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------
<CAPTION>
SHARES SUBJECT EXPIRATION EXERCISE
CALL OPTIONS TO CALL DATE PRICE VALUE
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
International Business Machines Corp. ........ 3,600 July 1997 $ 90.00 $(11,250)
Intel Corp. .................................. 1,500 July 1997 180.00 (2,156)
----------
$(13,406)
==========
</TABLE>
See Notes to Financial Statements
- ---------------------
38
<PAGE> 40
- ---------------------
SUNAMERICA SERIES TRUST
ASSET ALLOCATION PORTFOLIO INVESTMENT PORTFOLIO -- MAY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 60.7% SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY -- 6.7%
Apparel & Textiles -- 0.5%
Fruit of The Loom, Inc.+............................................. 58,700 $ 2,047,163
Automotive -- 3.2%
Auto Desk, Inc. ..................................................... 32,700 1,271,212
Ford Motor Co. ...................................................... 124,000 4,650,000
Goodyear Tire & Rubber Co. .......................................... 127,400 7,452,900
Housing -- 1.8%
Centex Corp. ........................................................ 80,700 3,217,913
Lennar Corp. ........................................................ 161,800 4,247,250
Retail -- 1.2%
Fleming Cos., Inc. .................................................. 254,200 4,829,800
------------
27,716,238
------------
CONSUMER STAPLES -- 5.3%
Food, Beverage & Tobacco -- 2.7%
Philip Morris Cos., Inc. ............................................ 135,200 5,948,800
Supervalu, Inc. ..................................................... 147,200 4,912,800
Household Products -- 2.6%
Sunbeam Corp. ....................................................... 318,200 10,739,250
------------
21,600,850
------------
ENERGY -- 3.9%
Energy Services -- 2.7%
Texaco, Inc. ........................................................ 37,600 4,103,100
Tosco Corp. ......................................................... 222,400 7,255,800
Energy Sources -- 1.2%
Atlantic Richfield Co. .............................................. 33,400 4,859,700
------------
16,218,600
------------
FINANCE -- 12.5%
Banks -- 5.4%
BankAmerica Corp. ................................................... 42,600 4,978,875
Chase Manhattan Corp. ............................................... 71,200 6,728,400
Fleet Financial Group, Inc. ......................................... 39,500 2,414,437
NationsBank Corp. ................................................... 38,500 2,266,688
Republic New York Corp. ............................................. 59,200 5,905,200
Financial Services -- 1.8%
Dean Witter, Discover & Co. ......................................... 182,500 7,528,125
Insurance -- 5.3%
Aetna, Inc. ......................................................... 74,500 7,524,500
CIGNA Corp. ......................................................... 51,500 8,948,125
Lincoln National Corp. .............................................. 49,600 3,019,400
Loews Corp. ......................................................... 21,800 2,120,050
------------
51,433,800
------------
</TABLE>
---------------------
39
<PAGE> 41
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 4.7%
Health Services -- 3.7%
Columbia/HCA Healthcare Corp. ....................................... 101,700 $ 3,724,763
Foundation Health Systems, Inc. ..................................... 130,500 3,898,687
Tenet Healthcare Corp.+.............................................. 279,300 7,680,750
Medical Products -- 1.0%
Baxter International, Inc. .......................................... 75,000 3,956,250
-------------
19,260,450
-------------
INDUSTRIAL & COMMERCIAL -- 9.6%
Aerospace & Military Technology -- 6.3%
Lear Corp.+.......................................................... 268,900 10,285,425
Lockheed Martin Corp. ............................................... 91,800 8,594,775
McDonnell Douglas Corp. ............................................. 73,500 4,731,562
Northrop Grumman Corp. .............................................. 29,400 2,491,650
Business Services -- 0.3%
Hertz Corp. ......................................................... 31,700 1,085,725
Transportation -- 3.0%
AMR Corp.+........................................................... 50,400 5,008,500
Canadian Pacific Ltd. ............................................... 127,900 3,389,350
CNF Transportation, Inc. ............................................ 117,600 3,792,600
-------------
39,379,587
-------------
INFORMATION & ENTERTAINMENT -- 3.1%
Broadcasting & Media -- 0.4%
Time Warner, Inc. ................................................... 31,300 1,455,450
Leisure & Tourism -- 2.7%
Brunswick Corp. ..................................................... 27,900 850,950
Continental Airlines, Inc. .......................................... 176,400 6,174,000
Royal Caribbean Cruises Ltd. ........................................ 119,100 4,153,613
-------------
12,634,013
-------------
INFORMATION TECHNOLOGY -- 4.7%
Communication Equipment -- 1.2%
Bay Networks, Inc.+.................................................. 203,800 4,993,100
Computers & Business Equipment -- 1.3%
Quantum Corp.+....................................................... 141,900 5,516,363
Electronics -- 2.2%
Avnet, Inc. ......................................................... 142,000 8,946,000
-------------
19,455,463
-------------
MATERIALS -- 6.8%
Chemicals -- 2.2%
Geon Co. ............................................................ 154,700 3,364,725
Union Carbide Corp. ................................................. 123,400 5,768,950
Forest Products -- 3.8%
Georgia-Pacific Corp. ............................................... 61,400 5,418,550
Owens-Illinois, Inc.+................................................ 137,000 4,229,875
Stone Container Corp. ............................................... 423,300 5,820,375
Metals & Minerals -- 0.8%
AK Steel Holding Corp. .............................................. 84,900 3,300,487
-------------
27,902,962
-------------
</TABLE>
- ---------------------
40
<PAGE> 42
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 3.4%
Electric Utilities -- 3.4%
Long Island Lighting Co. ............................................ 188,600 $ 4,361,375
Unicom Corp. ........................................................ 424,800 9,664,200
-------------
14,025,575
-------------
TOTAL COMMON STOCK (cost $205,359,357)............................... 249,627,538
-------------
PREFERRED STOCK -- 0.3%
----------------------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 0.3%
Broadcasting & Media -- 0.1%
Time Warner, Inc. Series M 10.25%.................................... 265 292,064
Leisure & Tourism -- 0.2%
Royal Caribbean Cruises Ltd. Series A 7.25%.......................... 16,000 980,000
-------------
TOTAL PREFERRED STOCK (cost $1,066,351).............................. 1,272,064
-------------
PRINCIPAL
BONDS & NOTES -- 35.3% AMOUNT
----------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 0.7%
Apparel & Textiles -- 0.4%
Polysindo Eka Perkasa zero coupon 1998(1)............................ $ 1,000,000 857,000
Polysindo Eka Perkasa zero coupon 1998............................... 1,000,000 896,250
Automotive -- 0.1%
Chrysler Corp. 7.45% 2097............................................ 190,000 180,620
Housing -- 0.2%
United States Home Corp. 7.95% 2001.................................. 605,000 589,875
USI American Holdings, Inc. 7.25% 2006............................... 240,000 238,256
-------------
2,762,001
-------------
CONSUMER STAPLES -- 0.5%
Food, Beverage & Tobacco -- 0.5%
Ceval Alimentos 11.13% 2004*......................................... 300,000 311,625
Instituto Fomento Industrial 8.38% 2001*............................. 190,000 193,206
RJR Nabisco, Inc. 8.00% 2001......................................... 280,000 281,305
RJR Nabisco, Inc. 8.63% 2002......................................... 1,200,000 1,223,988
-------------
2,010,124
-------------
ENERGY -- 0.8%
Energy Services -- 0.6%
Arkla, Inc. 8.88% 1999............................................... 675,000 705,017
Edison Mission Energy Funding Corp. 6.77% 2003*...................... 255,846 253,795
Oryx Energy Co. 9.50% 1999........................................... 910,000 954,208
Tosco Corp. 7.00% 2000............................................... 550,000 552,051
YPF Sociedad Anonima 7.50% 2002...................................... 89,905 91,138
Energy Sources -- 0.2%
Empresa Col de Petroleos 7.25% 1998.................................. 240,000 239,052
Triton Energy Ltd. 8.75% 2002........................................ 700,000 705,250
-------------
3,500,511
-------------
FINANCE -- 8.5%
Banks -- 1.7%
Auburn Hills Trust 12.00% 2020....................................... 170,000 248,865
Banco Nacional de Comercio Exterior SNC 8.63% 2000*.................. 160,000 164,900
BankAmerica Corp. 9.75% 2000......................................... 400,000 432,532
</TABLE>
---------------------
41
<PAGE> 43
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
FINANCE (continued)
Banks (continued)
Capital One Bank 6.60% 2001.......................................... $ 1,870,000 $ 1,825,457
Capital One Bank 6.66% 2000.......................................... 150,000 148,105
Capital One Bank 6.75% 2000.......................................... 1,000,000 994,270
Capital One Bank 6.88% 2000.......................................... 850,000 851,096
Continental Bank NA 11.25% 2001...................................... 300,000 314,676
Continental Bank NA 12.50% 2001...................................... 450,000 532,107
Security Pacific Corp. 11.50% 2000................................... 600,000 683,760
Signet Banking Corp. 9.63% 1999...................................... 775,000 815,827
Financial Services -- 6.7%
Airplanes Pass Through Trust, Class C 8.15% 2019*.................... 195,000 200,554
APP International Finance Co. 8.30% 1999............................. 450,000 445,500
APP International Finance Co. 10.25% 2000............................ 600,000 613,781
Asset Securitization Corp. 6.88% 2026(1)............................. 900,000 892,547
Asset Securitization Corp. 7.49% 2027(1)............................. 1,450,000 1,475,601
Autoflow 1996 A Grantor Trust 7.48% 2002*(1)......................... 1,697,900 1,715,410
Bear Stearns Mortgage Securities, Inc. 6.75% 2008.................... 1,000,959 953,175
Case Equipment Loan Trust 7.30% 2002................................. 294,372 297,154
Chevy Chase Auto Receivables 5.80% 2002.............................. 209,782 208,928
Conseco Financing Trust I 8.70% 2026................................. 690,000 693,457
Countrywide Capital I 8.00% 2026..................................... 600,000 569,430
Countrywide Funding Corp. 8.43% 1999................................. 450,000 467,770
Countrywide Funding Corp. 7.73% 2001................................. 300,000 308,673
DGS International Finance Co. BV 10.00% 2007*........................ 200,000 202,000
Discover Card Master Trust I 5.73% 2004(2)........................... 300,000 302,343
Discover Card Master Trust I 5.93% 2013(2)........................... 2,000,000 2,009,360
Fasco Grantor Trust 6.65% 2001....................................... 1,349,785 1,360,246
Fingerhut Financial Services 6.45% 2002.............................. 920,000 920,285
First Union-Lehman Brothers Commercial Mortgage Trust 7.30%
2029(1)............................................................ 1,050,000 1,060,828
Ford Capital BV 9.50% 2001........................................... 800,000 870,488
Ford Credit Auto Loan Master Trust 6.50% 2002........................ 550,000 546,563
G.E. Capital Mortgage Services, Inc. 6.50% 2024...................... 637,890 527,650
General Motors Acceptance Corp. 5.63% 2001........................... 750,000 720,532
Guangdong Enterprises Ltd. 8.88% 2007*............................... 330,000 332,063
H&T Master Trust 8.00% 2002*(1)...................................... 900,000 899,156
Imexsa Export Trust 10.13% 2003*..................................... 300,000 313,500
JP Morgan Commercial Mortgage Finance Corp. 7.32% 2028(1)............ 1,400,000 1,408,750
Morgan Stanley Capital I 7.46% 2006(1)............................... 1,400,000 1,428,000
National Financiera, Inc. 8.44% 1998(2).............................. 600,000 607,875
Nacional Financiera, Inc. 9.00% 1999................................. 50,000 51,070
Navistar Financial Corp. 6.55% 2001.................................. 221,329 222,159
NWA Trust 8.26% 2006................................................. 251,940 262,915
Premier Auto Trust 4.90% 1998........................................ 79,371 79,074
PXRE Capital Trust I 8.85% 2027*..................................... 265,000 267,006
Sears Credit Account Master Trust 6.20% 2006......................... 700,000 688,625
Sears Credit Account Master Trust 8.10% 2004......................... 700,000 721,000
Standard Credit Card Master Trust 6.25% 1998......................... 260,000 260,325
Standard Credit Card Master Trust 8.25% 2003......................... 1,010,000 1,062,702
Standard Credit Card Master Trust 8.25% 2007......................... 1,610,000 1,710,625
Insurance -- 0.1%
Conseco, Inc. 10.50% 2004............................................ 500,000 582,865
-------------
35,271,580
-------------
HEALTHCARE -- 0.1%
Health Services -- 0.1%
Tenet Healthcare Corp. 9.63% 2002.................................... 240,000 258,000
-------------
</TABLE>
- ---------------------
42
<PAGE> 44
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
INDUSTRIAL & COMMERCIAL -- 0.5%
Aerospace & Military Technology -- 0.0%
Tevecap SA 12.63% 2004*.............................................. $ 200,000 $ 213,500
Business Services -- 0.4%
Hertz Corp. 7.00% 2003............................................... 750,000 736,185
Loewen Group International, Inc. 7.75% 2001*......................... 650,000 654,712
Multicanal Participacoes SA 12.63% 2004*............................. 200,000 226,500
Transportation -- 0.1%
Newport News Shipbuilding, Inc. 8.63% 2006........................... 210,000 214,200
-------------
2,045,097
-------------
INFORMATION & ENTERTAINMENT -- 3.2%
Broadcasting & Media -- 2.5%
Bonos Del Tesoro 8.75% 2002(1)....................................... 150,000 148,350
CBS 7.75% 1999....................................................... 740,000 748,636
Grupo Televisa SA 11.38% 2003........................................ 160,000 174,700
Innova S de R.L. 12.88% 2007*........................................ 270,000 280,125
NWCG Holding Corp. zero coupon 1999.................................. 1,200,000 1,042,500
Poland Communications, Inc. 9.88% 2003............................... 410,000 403,768
Rogers Cablesystems Ltd. 9.63% 2002.................................. 440,000 456,500
Rogers Cantel Mobile Communications, Inc. 11.13% 2002................ 250,000 260,625
Tele-Communications, Inc. 9.65% 2003................................. 375,000 396,990
Time Warner, Inc. 7.95% 2000......................................... 4,345,000 4,455,580
Time Warner, Inc. 9.63% 2002......................................... 850,000 935,442
United International Holdings, Inc. zero coupon 1999................. 210,000 159,600
Viacom, Inc. 9.13% 1999.............................................. 325,000 333,125
Viacom, Inc. 10.25% 2001............................................. 175,000 187,250
Leisure & Tourism -- 0.7%
America West Airlines 8.16% 2002..................................... 1,669,676 1,626,932
Blockbuster Entertainment Corp. 6.63% 1998........................... 580,000 580,209
Norwest Airlines Corp. 8.97% 2015.................................... 868,304 899,484
-------------
13,089,816
-------------
INFORMATION TECHNOLOGY -- 0.7%
Communication Equipment -- 0.4%
TCI Communications, Inc. 6.82% 2010.................................. 95,000 94,840
TCI Communications, Inc. 6.28% 2003(2)............................... 1,650,000 1,650,708
Computers & Business Equipment -- 0.1%
Comdisco, Inc. 5.75% 2001............................................ 500,000 480,980
Telecommunications -- 0.2%
360 Communications Co. 7.13% 2003.................................... 850,000 839,341
-------------
3,065,869
-------------
MATERIALS -- 0.3%
Forest Products -- 0.2%
Grupo Industrial Durango SA de CV 12.00% 2001........................ 320,000 348,000
Grupo Industrial Durango SA de CV 12.63% 2003........................ 120,000 133,800
Owens-Illinois, Inc. 10.00% 2002..................................... 150,000 158,250
PT Indah Kiat Pulp & Paper Corp. 8.88% 2000.......................... 20,000 19,863
Metals & Minerals -- 0.1%
Acindar Industria Argentina de Aceros SA 11.75% 1998................. 190,000 193,800
Altos Hornos de Mexico SA 11.38% 2002*............................... 170,000 179,456
Cemex S.A. de CV 10.00% 1999......................................... 60,000 62,163
Industrias Metalurgicas Pescarmona SA 9.50% 2002*.................... 410,000 209,475
-------------
1,304,807
-------------
</TABLE>
---------------------
43
<PAGE> 45
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
NON-U.S. GOVERNMENT OBLIGATIONS -- 2.5%
Foreign Government -- 2.5%
City of Moscow 9.50% 2000*........................................... $ 270,000 $ 269,460
Province of Quebec 13.25% 2014....................................... 625,000 733,912
Republic of Argentina 3.36% 2001(2).................................. 780,000 962,520
Republic of Argentina 5.63% 2000..................................... 1,720,000 730,484
Republic of Argentina 8.85% 1998(1)(2)............................... 215,550 217,637
Republic of Argentina 5.70% 2002(2).................................. 110,000 127,902
Republic of Argentina 8.85% 1998(1)(2)............................... 207,000 209,004
Republic of Argentina 5.50% 2000................................(YEN) 60,000,000 540,232
Republic of Brazil 6.50% 2001(2)..................................... 487,200 490,489
Republic of Panama 7.03% 2002........................................ 1,869,229 1,845,303
Rio de Janeiro 10.38% 1999........................................... 240,000 247,050
State of Israel 6.38% 2005........................................... 635,000 596,919
United Kingdom Gilt-Edged Bonds 8.00% 2003......................(GBP) 1,700,000 2,895,673
United Mexican States 7.63% 2001*(2)................................. 370,000 372,312
-------------
10,238,897
-------------
REAL ESTATE -- 0.3%
Real Estate Investment Trusts -- 0.3%
Chelsea GCA Realty, Inc. 7.75% 2001.................................. 570,000 575,546
Tanger Properties Ltd. 8.75% 2001.................................... 560,000 567,700
-------------
1,143,246
-------------
U.S. GOVERNMENT & AGENCIES -- 16.8%
U.S. Government & Agencies -- 16.8%
Federal Home Loan Mortgage Corp. 5.40% 2018.......................... 2,000,000 1,929,360
Federal Home Loan Mortgage Corp. 5.50% 2008.......................... 1,971,071 1,798,977
Federal Home Loan Mortgage Corp. 6.00% 2008.......................... 1,000,000 935,282
Federal Home Loan Mortgage Corp. 6.00% 2016@......................... 1,564,526 1,537,147
Federal Home Loan Mortgage Corp. 6.35% 2018.......................... 3,000,000 2,940,930
Federal Home Loan Mortgage Corp. 7.50% TBA........................... 2,000,000 2,010,620
Federal National Mortgage Association zero coupon 2023............... 1,500,000 1,263,270
Federal National Mortgage Association 6.50% 2025..................... 2,009,084 1,904,230
Federal National Mortgage Association 6.50% TBA...................... 5,000,000 4,920,300
Federal National Mortgage Association 7.00% 2024..................... 1,190,641 1,082,435
Federal National Mortgage Association 7.00% TBA...................... 3,000,000 2,919,360
Federal National Mortgage Association 7.50% TBA...................... 5,000,000 4,979,650
Federal National Mortgage Association 8.50% TBA...................... 2,000,000 2,067,500
Government National Mortgage Association 7.00% 2023.................. 3,932,722 3,852,807
Government National Mortgage Association 7.50% 2023.................. 893,570 894,964
Government National Mortgage Association 7.50% TBA................... 3,000,000 2,987,790
Government National Mortgage Association 8.00% 2026.................. 921,224 937,344
Government National Mortgage Association 8.00% TBA................... 6,000,000 6,105,000
United States Treasury Bonds 7.63% 2025.............................. 1,520,000 1,638,514
United States Treasury Bonds 7.88% 2021@............................. 280,000 307,782
United States Treasury Bonds 8.75% 2017.............................. 600,000 712,596
United States Treasury Bonds 8.75% 2020.............................. 9,890,000 11,844,857
United States Treasury Bonds Strip zero coupon 2019.................. 40,000 8,235
United States Treasury Bonds Strip zero coupon 2020.................. 7,920,000 1,574,179
United States Treasury Bonds Strip zero coupon 2017.................. 50,000 12,058
United States Treasury Bonds Strip zero coupon 2005.................. 1,000,000 589,650
United States Treasury Notes 5.63% 2000.............................. 1,000,000 975,620
United States Treasury Notes 6.88% 1999.............................. 1,700,000 1,721,522
United States Treasury Notes 7.88% 2004.............................. 4,300,000 4,611,062
-------------
69,063,041
-------------
</TABLE>
- ---------------------
44
<PAGE> 46
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
UTILITIES -- 0.4%
Electric Utilities -- 0.4%
Central Maine Power Co. 7.45% 1999................................... $ 885,000 $ 876,707
Cleveland Electric Illuminating Co. 9.38% 2017....................... 190,000 195,611
Korea Electric Power Corp. 7.40% 2016................................ 615,510 619,819
Gas & Pipeline Utilities -- 0.0%
Bridas Corp. 9.50% 1999*............................................. 130,000 133,088
Bridas Corp. 12.50% 1999............................................. 60,000 65,705
-------------
1,890,930
-------------
TOTAL BONDS & NOTES (cost $145,606,912).............................. 145,643,919
-------------
TOTAL INVESTMENT SECURITIES (cost $352,032,620)...................... 396,543,521
-------------
<CAPTION>
SHORT-TERM SECURITIES -- 1.8%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 0.7%
Arkla, Inc. 9.20% due 12/18/97....................................... 250,000 253,102
First USA Bank 6.13% due 10/30/97.................................... 270,000 269,887
General Motors Acceptance Corp. 7.63% due 3/9/98..................... 585,000 591,090
Kmart Corp. 8.70% due 8/1/97......................................... 700,000 700,847
Tele-Communications, Inc. 7.13% due 2/2/98........................... 1,000,000 1,003,400
-------------
2,818,326
-------------
FOREIGN SHORT-TERM NOTES -- 1.1%
Argentina Treasury Bill zero coupon due 10/17/97..................... 1,060,000 1,032,943
Banco de Brasil 9.50% due 8/28/97.................................... 80,000 80,100
Banco Nacional De Comercio 10.63% due 6/23/97*....................... 50,000 50,163
Banco Nacional de Desernvolvimento Economico e Social 10.38% due
4/27/98............................................................ 220,000 224,174
Comision Federal de Electric 8.00% due 8/4/97(1)..................... 550,000 550,687
Empresas Ica Sociedad ADS 9.75% due 2/11/98.......................... 460,000 464,895
Nacional Financiera 5.88% due 2/17/98................................ 310,000 306,900
Nacional Financiera 8.13% due 4/9/98*................................ 160,000 160,900
Petroleo Brasileiros SA 7.25% due 2/6/98............................. 250,000 249,625
Telecom Brasil 10.00% due 6/16/97.................................... 250,000 250,273
Telecomunicacoes Brasileiras SA 10.38% due 9/9/97.................... 350,000 352,014
Telecomunicacoes Brasileiras SA 10.00% due 10/22/97.................. 380,000 380,018
Transportacion Maritima Mexican SA 9.75% due 10/28/97................ 260,000 263,088
-------------
4,365,780
-------------
TOTAL SHORT-TERM SECURITIES (cost $7,177,736)........................ 7,184,106
-------------
</TABLE>
---------------------
45
<PAGE> 47
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 8.4% AMOUNT VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
REPURCHASE AGREEMENT -- 8.4%
Agreement with State Street Bank and Trust, Co., bearing interest of
5.45% dated 5/30/97, to be repurchased 6/2/97 in the amount of
$34,616,499 and collateralized by $24,780,000 U.S. Treasury Bonds
12.00% due 8/15/13 @ (cost $34,601,000)............................ $34,601,000 $ 34,601,000
-------------
TOTAL INVESTMENTS --
(cost $393,811,356) 106.5% 438,328,627
Total currency swap agreement, at value(3) -- (0.1) (55,157)
Liabilities in excess of other assets -- (6.4) (26,568,148)
------ -------------
NET ASSETS -- 100.0% $411,705,322
====== ==============
</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 May 31, 1997
(3) The Portfolio entered into a currency swap agreement with
Swiss Bank Corporation ("Swiss Bank"). Under the agreement the
Portfolio will pay Swiss Bank 3,300,000 Yen each year
commencing September 6, 1997 until September 6, 2000, with an
additional payment of 60,000,000 Yen due September 6, 2000. In
return, Swiss Bank will pay the Portfolio $21,570 on March 6
and September 6 each year commencing March 6, 1997 until
September 6, 2000 with an additional payment of $488,003 due
September 6, 2000.
ADS -- American Depository 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.
GBP -- Pound Sterling
JPY -- Japanese Yen
@ The security or a portion thereof represents collateral for the
currency swap agreement and the following open futures
contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
<C> <S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------
<CAPTION>
UNREALIZED
NUMBER OF EXPIRATION VALUE AT VALUE AS OF APPRECIATION/
CONTRACTS DESCRIPTION DATE TRADE DATE MAY 31, 1997 DEPRECIATION
-----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
4 Long 90 Day Euro Dollar........... December 1997 $ 936,030 $ 937,700 $ 1,670
5 Long 90 Day Euro Dollar........... June 1997 1,171,470 1,177,313 5,843
5 Long 90 Day Euro Dollar........... June 1998 1,209,907 1,206,250 (3,657)
14 Long 90 Day Euro Dollar........... September 1997 3,286,243 3,290,175 3,932
5 Long 90 Day Euro Dollar........... September 1998 1,172,657 1,167,875 (4,782)
4 Long 90 Day Euro Dollar........... September 1998 935,725 935,300 (425)
10 Long U.S. 2 Year Note............. June 1997 2,062,408 2,059,532 (2,876)
50 Long U.S. 10 Year Note............ June 1997 5,380,690 5,376,565 (4,125)
11 Long U.S. Treasury Bond........... June 1997 1,192,444 1,210,344 17,900
--------------
Net Unrealized Appreciation................................................... $ 13,480
=============
</TABLE>
- ---------------------
46
<PAGE> 48
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
<CAPTION>
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*AUD 3,786,000 USD 3,005,138 06/16/97 $ 121,183
GBP 1,841,591 USD 3,031,370 08/15/97 23,836
---------
145,019
---------
<CAPTION>
------------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE DEPRECIATION
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*USD 2,891,368 AUD 3,786,000 06/16/97 (7,414)
---------
Net Unrealized Appreciation.............. $ 137,605
=========
</TABLE>
-----------------------------
Represents open forward foreign currency and offsetting open
forward foreign currency contracts that do not have additional
market risk but have continued counterparty settlement risk.
AUD -- Australian Dollar
GBP -- Pound Sterling
USD -- United States Dollar
See Notes to Financial Statements
---------------------
47
<PAGE> 49
- ---------------------
SUNAMERICA SERIES TRUST
UTILITY PORTFOLIO INVESTMENT PORTFOLIO -- MAY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 77.0% SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY -- 0.6%
Automotive -- 0.6%
Ford Motor Co. ........................................................ 2,000 $ 75,000
-------------
CONSUMER STAPLES -- 2.0%
Food, Beverage & Tobacco -- 2.0%
Philip Morris Cos., Inc. .............................................. 6,400 281,600
-------------
ENERGY -- 0.6%
Energy Services -- 0.6%
Exxon Corp. ........................................................... 1,500 88,875
-------------
FINANCE -- 1.7%
Banks -- 1.7%
Mellon Bank Corp. ..................................................... 1,400 122,500
National Australia Bank Ltd. .......................................... 4,400 118,800
-------------
241,300
-------------
INDUSTRIAL & COMMERCIAL -- 1.2%
Business Services -- 1.2%
Browning-Ferris Industries, Inc. ...................................... 4,800 161,400
-------------
INFORMATION TECHNOLOGY -- 1.5%
Telecommunications -- 1.5%
Societa Finanziaria Telefonica......................................... 53,600 210,357
-------------
REAL ESTATE -- 2.8%
Real Estate Investment Trusts -- 2.8%
Meditrust Corp. ....................................................... 10,700 394,562
-------------
UTILITIES -- 66.6%
Electric Utilities -- 40.1%
China Light & Power Co., Ltd. ......................................... 25,000 125,186
CINergy Corp. ......................................................... 5,600 196,000
CMS Energy Corp. ...................................................... 12,300 413,587
DPL, Inc. ............................................................. 15,100 360,512
DQE, Inc. ............................................................. 12,300 345,937
Duke Power Co. ........................................................ 9,200 414,000
Empresa Nacional De Electricidad ADR+.................................. 9,800 220,500
FPL Group, Inc.+ ...................................................... 9,200 427,800
GPU, Inc. ............................................................. 6,300 220,500
Illinova Corp. ........................................................ 11,800 258,125
Korea Electric Power Corp. ADR......................................... 4,800 87,000
National Power PLC Corp................................................ 8,100 291,600
NIPSCO Industries, Inc. ............................................... 8,500 344,250
Pacificorp............................................................. 11,100 220,613
Pinnacle West Capital Corp. ........................................... 12,800 376,000
Portland General Corp. ................................................ 4,300 172,000
Southern Co. .......................................................... 13,700 291,125
</TABLE>
- ---------------------
48
<PAGE> 50
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Electric Utilities (continued)
Teco Energy, Inc. ..................................................... 13,100 $ 325,863
Telecomunicacoes Brasileras SA ADR..................................... 2,000 274,750
Texas Utilities Co. ................................................... 7,900 271,563
Gas & Pipeline Utilities -- 7.6%
American Water Works, Inc. ............................................ 1,900 40,850
MCN Corp. ............................................................. 10,600 314,025
New Jersey Resources Corp. ............................................ 1,100 34,237
Pacific Enterprises.................................................... 8,900 291,475
PanEnergy Corp. ....................................................... 3,800 177,650
Williams Cos., Inc. ................................................... 4,750 209,594
Telephone -- 18.9%
Ameritech Corp. ....................................................... 6,600 432,300
BellSouth Corp. ....................................................... 9,300 421,987
GTE Corp. ............................................................. 9,300 410,363
MCI Communications Corp. .............................................. 9,900 379,913
Nippon Telegraph & Telephone Corp.+.................................... 14 133,448
SBC Communications, Inc. .............................................. 7,630 446,355
Sprint Corp. .......................................................... 8,700 425,212
-------------
9,354,320
-------------
TOTAL COMMON STOCK (cost $10,172,513).................................. 10,807,414
-------------
<CAPTION>
PREFERRED STOCK -- 16.1%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 7.2%
Financial Services -- 6.1%
Merrill Lynch & Co., Inc. 6.25%........................................ 3,600 145,350
Merrill Lynch & Co., Inc. 6.50%........................................ 3,900 302,250
Salomon, Inc. 6.25%.................................................... 2,700 164,025
Salomon, Inc. 7.63%.................................................... 2,800 82,250
Tosco Financing Trust 5.75%............................................ 2,900 169,106
Insurance -- 1.1%
Aetna, Inc. 6.25%...................................................... 1,600 148,000
-------------
1,010,981
-------------
INDUSTRIAL & COMMERCIAL -- 1.0%
Business Services -- 1.0%
Amcor Ltd. 7.25% ...................................................... 1,400 72,800
Ikon Office Solutions, Inc. 5.04%...................................... 800 61,000
-------------
133,800
-------------
INFORMATION & ENTERTAINMENT -- 0.6%
Broadcasting & Media -- 0.6%
Hollinger International, Inc. 9.75%.................................... 7,800 85,800
-------------
INFORMATION TECHNOLOGY -- 2.9%
Communication Equipment -- 0.9%
TCI Pacific Communications, Inc. 5.00%................................. 1,300 131,788
Computers & Business Equipment -- 2.0%
Microsoft Corp. 2.20%.................................................. 3,200 275,600
-------------
407,388
-------------
</TABLE>
---------------------
49
<PAGE> 51
<TABLE>
<CAPTION>
PREFERRED STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS -- 0.8%
Metals & Minerals -- 0.8%
Coeur D' Alene Mines Corp. 7.00%....................................... 6,800 $ 113,050
------------
UTILITIES -- 2.5%
Energy Services -- 0.5%
Calenergy Capital Trust I 6.25%........................................ 1,200 69,600
Gas & Pipeline Utilities -- 2.0%
MCN Financing III 8.00%................................................ 700 36,925
Williams Cos., Inc. 3.50%.............................................. 2,400 248,400
------------
354,925
------------
INFORMATION & ENTERTAINMENT -- 1.1%
Broadcasting & Media -- 1.1%
AirTouch Communications, Inc. 4.25%.................................... 3,200 155,200
------------
TOTAL PREFERRED STOCK (cost $2,126,850)................................ 2,261,144
------------
<CAPTION>
PRINCIPAL
CONVERTIBLE BONDS -- 3.5% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 2.5%
Drugs -- 2.1%
Alza Corp. 5.00% 2006.................................................. $ 165,000 165,000
Roche Holdings, Inc. zero coupon 2012*................................. 300,000 122,812
Health Services -- 0.4%
Tenet Healthcare Corp. 6.00% 2005...................................... 50,000 61,000
------------
348,812
------------
INFORMATION TECHNOLOGY -- 0.8%
Electronics -- 0.8%
Solectron Corp. 6.00% 2006............................................. 100,000 117,250
------------
UTILITIES -- 0.2%
Electric Utilities -- 0.2%
Korea Electric Power Corp. ADR 5.00% 2001.............................. 30,000 29,100
------------
TOTAL CONVERTIBLE BONDS (cost $474,933)................................ 495,162
------------
TOTAL INVESTMENT SECURITIES (cost $12,774,296)......................... 13,563,720
------------
<CAPTION>
SHORT-TERM SECURITIES -- 10.4%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 10.4%
Cayman Island Time Deposit with State Street Bank & Trust Co.
4.50% due 6/2/97 (cost $1,453,000)................................... 1,453,000 1,453,000
------------
TOTAL INVESTMENTS --
(cost $14,227,296) 107.0% 15,016,720
Liabilities in excess of other assets -- (7.0) (975,990)
------ ------------
NET ASSETS -- 100.0% $14,040,730
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
* Resale restricted to qualified institutional buyers
See Notes to Financial Statements
- ---------------------
50
<PAGE> 52
- ---------------------
SUNAMERICA SERIES TRUST
GROWTH-INCOME PORTFOLIO INVESTMENT PORTFOLIO -- MAY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 89.9% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 5.0%
Apparel & Textiles -- 0.4%
Reebok International Ltd. ........................................... 40,000 $ 1,640,000
Automotive -- 1.3%
Federal-Mogul Corp. ................................................. 75,000 2,184,375
Harley-Davidson, Inc................................................. 50,000 2,237,500
Magna International, Inc. Class A ADR................................ 30,000 1,612,500
Retail -- 3.3%
Dayton Hudson Corp. ................................................. 70,000 3,368,750
Federated Department Stores, Inc.+................................... 79,700 2,948,900
Kohl's Corp.+........................................................ 40,000 2,155,000
Kroger Co.+.......................................................... 80,000 2,050,000
Sears, Roebuck & Co. ................................................ 55,000 2,701,875
Shaw Industries, Inc. ............................................... 145,000 1,812,500
----------
22,711,400
----------
CONSUMER STAPLES -- 12.8%
Food, Beverage & Tobacco -- 7.3%
Campbell Soup Co. ................................................... 76,000 3,496,000
Coca-Cola Co. ....................................................... 170,000 11,602,500
Nabisco Holdings Corp. Class A....................................... 45,000 1,783,125
Philip Morris Cos., Inc. ............................................ 360,000 15,840,000
Household Products -- 5.5%
Colgate-Palmolive Co. ............................................... 75,000 4,650,000
Gillette Co. ........................................................ 72,700 6,461,212
Procter & Gamble Co. ................................................ 66,000 9,099,750
Sunbeam Corp. ....................................................... 75,000 2,531,250
United States Industries, Inc.+...................................... 55,200 1,966,500
----------
57,430,337
----------
ENERGY -- 6.7%
Energy Services -- 5.8%
BJ Services Co.+..................................................... 38,000 2,099,500
Exxon Corp. ......................................................... 149,400 8,851,950
Schlumberger Ltd. ................................................... 36,000 4,288,500
Texaco, Inc. ........................................................ 100,000 10,912,500
Energy Sources -- 0.9%
Apache Corp. ........................................................ 55,000 1,883,750
Transocean Offshore, Inc. ........................................... 33,000 2,277,000
----------
30,313,200
----------
FINANCE -- 15.9%
Banks -- 4.0%
Chase Manhattan Corp. ............................................... 56,000 5,292,000
First Bank Systems, Inc. ............................................ 37,000 3,034,000
First Chicago Corp. ................................................. 68,052 4,032,081
First Union Corp. ................................................... 66,900 5,745,037
</TABLE>
---------------------
51
<PAGE> 53
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services -- 8.7%
American Express Co. ................................................ 70,000 $ 4,865,000
Dean Witter, Discover & Co. ......................................... 100,000 4,125,000
Federal Home Loan Mortgage Corp. .................................... 70,000 2,310,000
Federal National Mortgage Association................................ 120,000 5,235,000
First Data Corp. .................................................... 58,000 2,320,000
Household International, Inc. ....................................... 26,500 2,603,625
MBNA Corp. .......................................................... 120,000 4,065,000
Merrill Lynch & Co., Inc. ........................................... 53,000 5,618,000
Morgan Stanley Group, Inc. .......................................... 34,100 2,301,750
Penncorp Financial Group, Inc. ...................................... 60,000 2,047,500
Travelers Group, Inc. ............................................... 69,400 3,808,325
Insurance -- 3.2%
American International Group, Inc. .................................. 42,000 5,685,750
Hartford Financial Services Group, Inc. ............................. 28,000 2,184,000
NAC Reinsurance Corp. ............................................... 40,000 1,595,000
PMI Group, Inc. ..................................................... 48,300 2,650,463
Travelers Property Casualty Corp. Class A............................ 55,000 2,117,500
----------
71,635,031
----------
HEALTHCARE -- 12.0%
Drugs -- 7.0%
Biogen, Inc.+........................................................ 40,000 1,327,500
GelTex Pharmaceuticals, Inc.+........................................ 100,000 1,900,000
Merck & Co., Inc. ................................................... 110,900 9,967,138
Pfizer, Inc. ........................................................ 70,000 7,201,250
Schering-Plough Corp. ............................................... 72,500 6,579,375
Smithkline Beecham PLC ADR........................................... 50,000 4,375,000
Health Services -- 1.4%
Columbia/HCA Healthcare Corp. ....................................... 105,000 3,845,625
Oxford Health Plans, Inc.+........................................... 33,000 2,326,500
Medical Products -- 3.6%
Abbott Laboratories, Inc. ........................................... 88,000 5,544,000
Boston Scientific Corp.+............................................. 39,000 2,081,625
Johnson & Johnson Co. ............................................... 94,000 5,628,250
Medtronic, Inc. ..................................................... 41,000 3,034,000
----------
53,810,263
----------
INDUSTRIAL & COMMERCIAL -- 10.4%
Aerospace & Military Technology -- 2.8%
AlliedSignal, Inc. .................................................. 90,000 6,907,500
General Dynamics Corp. .............................................. 35,000 2,620,625
United Technologies Corp. ........................................... 38,000 3,054,250
Business Services -- 0.7%
Republic Industries, Inc.+........................................... 50,000 1,203,125
USA Waste Services, Inc.+............................................ 50,000 1,812,500
Electrical Equipment -- 3.6%
General Electric Co. ................................................ 270,000 16,301,250
Machinery -- 1.6%
Applied Materials, Inc.+............................................. 45,000 2,936,250
Case Corp. .......................................................... 33,000 1,947,000
Centocor, Inc.+...................................................... 70,200 2,474,550
Multi-Industry -- 0.6%
Tyco International Ltd. ............................................. 45,900 2,914,650
</TABLE>
- ---------------------
52
<PAGE> 54
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Transportation -- 1.1%
CNF Transportation, Inc. ............................................ 80,000 $ 2,580,000
Union Pacific Corp. ................................................. 33,000 2,235,750
----------
46,987,450
----------
INFORMATION & ENTERTAINMENT -- 5.4%
Broadcasting & Media -- 2.1%
Gannett Co., Inc. ................................................... 30,000 2,775,000
New York Times Co. Class A........................................... 40,000 1,842,500
Reuters Holdings PLC ADR............................................. 40,000 2,738,125
Tele-Communications, Inc. Class A+................................... 96,975 2,115,267
Leisure & Tourism -- 3.3%
Carnival Corp. Class A............................................... 62,200 2,363,600
Disney (Walt) Co. ................................................... 76,000 6,222,500
La Quinta Inns, Inc. ................................................ 60,000 1,380,000
McDonald's Corp. .................................................... 95,000 4,773,750
----------
24,210,742
----------
INFORMATION TECHNOLOGY -- 15.7%
Communication Equipment -- 2.1%
ADC Telecommunications, Inc.+........................................ 65,000 2,226,250
Cox Communications, Inc. Class A+.................................... 100,000 2,187,500
Northern Telecom Ltd. ............................................... 23,400 1,965,600
Tellabs, Inc.+....................................................... 57,000 2,864,250
Computers & Business Equipment -- 2.7%
Compaq Computer Corp.+............................................... 42,400 4,589,800
Dell Computer Corp.+ ................................................ 50,000 5,625,000
Seagate Technology, Inc.+............................................ 50,000 2,031,250
Electronics -- 4.8%
Altera Corp.+........................................................ 66,000 3,498,000
Intel Corp. ......................................................... 90,000 13,635,000
National Semiconductor Corp.+........................................ 85,000 2,390,625
Solectron Corp.+..................................................... 35,000 2,187,500
Software -- 4.6%
Cisco Systems, Inc.+................................................. 60,000 4,065,000
Microsoft Corp.+..................................................... 97,000 12,028,000
Netscape Communications Corp.+....................................... 30,000 886,875
Oracle Systems Corp.+................................................ 85,000 3,963,125
Telecommunications -- 1.5%
Lucent Technologies, Inc. ........................................... 70,000 4,453,750
Teleport Communications Group Class A+............................... 70,000 2,117,500
----------
70,715,025
----------
MATERIALS -- 2.6%
Chemicals -- 2.0%
Eastman Kodak Co..................................................... 42,000 3,480,750
Monsanto Co.......................................................... 120,000 5,280,000
Metals & Minerals -- 0.6%
Crown, Cork & Seal Co., Inc. ........................................ 32,800 1,910,600
Kaiser Aluminum Corp. ............................................... 70,000 805,000
----------
11,476,350
----------
REAL ESTATE -- 0.5%
Real Estate Investment Trusts -- 0.5%
Starwood Lodging Trust............................................... 57,000 2,123,250
----------
</TABLE>
---------------------
53
<PAGE> 55
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 2.9%
Electric Utilities -- 1.5%
FPL Group, Inc. ..................................................... 145,000 $ 6,742,500
Gas & Pipeline Utilities -- 0.7%
CMS Energy Corp...................................................... 100,000 3,362,500
Telephone -- 0.7%
WorldCom, Inc.+...................................................... 105,000 3,110,625
----------
13,215,625
----------
TOTAL INVESTMENT SECURITIES (cost $299,068,333)...................... 404,628,673
----------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 10.7% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 10.4%
Cayman Island Time Deposit with State Street Bank & Trust Co.
5.25% due 6/2/97 @................................................. $46,665,000 46,665,000
----------
U.S. GOVERNMENT -- 0.3%
United States Treasury Bills 4.68% due 6/19/97 @..................... 390,000 389,087
United States Treasury Bills 5.02% due 6/19/97 @..................... 45,000 44,887
United States Treasury Bills 5.05% due 6/19/97 @..................... 455,000 453,851
United States Treasury Bills 5.07% due 6/19/97 @..................... 215,000 214,455
United States Treasury Bills 5.24% due 6/19/97 @..................... 320,000 319,162
----------
1,421,442
----------
TOTAL SHORT-TERM SECURITIES (cost $48,086,442)....................... 48,086,442
----------
TOTAL INVESTMENTS --
(cost $347,154,775) 100.6% 452,715,115
Liabilities in excess of other assets -- (0.6) (2,596,717)
------ ----------
NET ASSETS -- 100.0% $450,118,398
====== ==========
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository 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> <C>
---------
<CAPTION>
NUMBER OF EXPIRATION VALUE AT VALUE AS OF UNREALIZED
CONTRACTS DESCRIPTION DATE TRADE DATE MAY 31, 1997 APPRECIATION
---------
<C> <S> <C> <C> <C> <C>
90 Long Standard & Poor's 500 Index............. June 1997 $36,835,450 $ 38,277,000 $1,441,550
===========
</TABLE>
See Notes to Financial Statements
- ---------------------
54
<PAGE> 56
- ---------------------
SUNAMERICA SERIES TRUST
FEDERATED VALUE PORTFOLIO INVESTMENT PORTFOLIO -- MAY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 92.9% SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY -- 11.1%
Apparel & Textiles -- 1.7%
Russell Corp. ......................................................... 17,900 $ 548,188
Automotive -- 3.6%
Borg-Warner Automotive, Inc. .......................................... 11,400 555,750
General Motors Corp. .................................................. 4,400 251,900
General Motors Corp., Class H.......................................... 6,100 336,262
Retail -- 5.8%
Dayton Hudson Corp. ................................................... 14,000 673,750
Kmart Corp. ........................................................... 38,100 533,400
Wal-Mart Stores, Inc. ................................................. 20,700 615,825
-------------
3,515,075
-------------
CONSUMER STAPLES -- 9.5%
Food, Beverage & Tobacco -- 4.6%
CPC International, Inc. ............................................... 5,200 447,200
PepsiCo, Inc. ......................................................... 16,400 602,700
Philip Morris Cos., Inc. .............................................. 4,600 202,400
RJR Nabisco Holdings Corp. ............................................ 6,200 200,725
Household Products -- 4.9%
Kimberly-Clark Corp. .................................................. 6,100 305,763
Rubbermaid, Inc. ...................................................... 23,100 643,912
Unilever NV ADR........................................................ 3,100 600,625
-------------
3,003,325
-------------
ENERGY -- 13.3%
Energy Services -- 5.5%
Chevron Corp. ......................................................... 3,500 245,000
Exxon Corp. ........................................................... 5,800 343,650
Mobil Corp. ........................................................... 2,700 377,662
Occidental Petroleum Corp. ............................................ 8,100 188,325
Royal Dutch Petroleum Co. ADR.......................................... 1,800 351,450
Texaco, Inc. .......................................................... 2,100 229,163
Energy Sources -- 7.8%
Amerada Hess Corp. .................................................... 4,800 256,800
Coastal Corp. ......................................................... 5,000 250,625
Columbia Gas Systems, Inc. ............................................ 4,700 302,562
Houston Industries, Inc. .............................................. 11,800 244,850
Sun Co., Inc. ......................................................... 14,600 436,175
Unocal Corp. .......................................................... 8,000 341,000
USX Marathon Group..................................................... 21,100 627,725
-------------
4,194,987
-------------
FINANCE -- 14.0%
Banks -- 2.1%
National City Corp. ................................................... 5,300 272,950
Republic New York Corp. ............................................... 4,100 408,975
</TABLE>
---------------------
55
<PAGE> 57
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services -- 5.7%
Bear Stearns Cos., Inc. ............................................... 8,500 $ 276,250
Dean Witter, Discover & Co. ........................................... 9,100 375,375
Federal National Mortgage Association.................................. 6,500 283,562
H&R Block, Inc. ....................................................... 11,300 372,900
Nationwide Financial Services, Inc.+................................... 8,700 244,688
Travelers Group, Inc. ................................................. 4,500 246,938
Insurance -- 6.2%
Allstate Corp. ........................................................ 4,500 331,312
CIGNA Corp. ........................................................... 4,000 695,000
Loews Corp. ........................................................... 2,600 252,850
Marsh & McLennan Cos. ................................................. 5,100 671,925
-------------
4,432,725
-------------
HEALTHCARE -- 10.5%
Drugs -- 3.8%
American Home Products Corp. .......................................... 4,500 343,125
Bristol-Myers Squibb Co. .............................................. 7,600 557,650
Merck & Co., Inc. ..................................................... 3,200 287,600
Health Services -- 3.6%
Columbia/HCA Healthcare Corp. ......................................... 8,700 318,637
Healthsource, Inc.+.................................................... 10,400 223,600
United Healthcare Corp. ............................................... 5,300 299,450
Vencor, Inc.+.......................................................... 7,400 301,550
Medical Products -- 3.1%
Abbott Laboratories, Inc. ............................................. 6,700 422,100
Biomet, Inc.+.......................................................... 15,400 287,788
Tambrands, Inc. ....................................................... 5,600 270,200
-------------
3,311,700
-------------
INDUSTRIAL & COMMERCIAL -- 10.9%
Business Services -- 2.8%
Browning-Ferris Industries, Inc. ...................................... 17,000 556,750
Centex Corp. .......................................................... 8,000 319,000
Electrical Equipment -- 1.4%
AMP, Inc. ............................................................. 10,700 440,038
Machinery -- 2.2%
Ingersoll-Rand Co. .................................................... 12,600 686,700
Multi-Industry -- 1.9%
ITT Industries, Inc. .................................................. 24,400 603,900
Transportation -- 2.6%
AMR Corp.+............................................................. 4,900 486,937
CNF Transportation, Inc. .............................................. 10,900 351,525
-------------
3,444,850
-------------
INFORMATION & ENTERTAINMENT -- 2.0%
Broadcasting & Media -- 2.0%
Readers Digest Association, Inc. ...................................... 13,600 336,600
Viacom, Inc., Class A+................................................. 6,300 189,788
Viacom, Inc., Class B+................................................. 4,000 118,750
-------------
645,138
-------------
</TABLE>
- ---------------------
56
<PAGE> 58
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY -- 10.1%
Computers & Business Equipment -- 5.6%
Cabletron Systems, Inc.+............................................... 8,800 $ 387,200
Hewlett-Packard Co. ................................................... 4,100 211,150
International Business Machines Corp. ................................. 3,600 311,400
Lexmark International Group, Inc.+..................................... 12,800 337,600
Storage Technology Corp.+.............................................. 13,000 529,750
Electronics -- 0.9%
Intel Corp. ........................................................... 1,800 272,700
Telecommunications -- 3.6%
Lucent Technologies, Inc. ............................................. 7,400 470,825
Tele-Communications TCI Group Class A+................................. 44,500 673,062
-------------
3,193,687
-------------
MATERIALS -- 5.0%
Chemicals -- 2.4%
BetzDearbern, Inc. .................................................... 4,700 299,625
duPont (EI) de Nemours & Co. .......................................... 1,900 206,863
Morton International, Inc. ............................................ 8,600 277,350
Forest Products -- 0.8%
Consolidated Papers, Inc. ............................................. 4,600 250,700
Metals & Minerals -- 1.8%
USX-US Steel Group, Inc. .............................................. 17,600 567,600
-------------
1,602,138
-------------
UTILITIES -- 6.5%
Gas & Pipeline Utilities -- 1.5%
Pacific Gas & Electric Co. ............................................ 20,200 467,125
Telephone -- 5.0%
GTE Corp. ............................................................. 8,500 375,063
MCI Communications Corp. .............................................. 16,000 614,000
SBC Communications, Inc. .............................................. 10,101 590,892
-------------
2,047,080
-------------
TOTAL COMMON STOCK (cost $26,274,179).................................. 29,390,705
-------------
<CAPTION>
PREFERRED STOCK -- 1.4%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY -- 1.4%
Software -- 1.4%
Microsoft Corp. 2.20% (cost $414,669).................................. 5,100 $ 439,237
-------------
TOTAL INVESTMENT SECURITIES (cost $26,688,848)......................... 29,829,942
-------------
</TABLE>
---------------------
57
<PAGE> 59
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 10.3% AMOUNT VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
TIME DEPOSIT -- 10.3%
Cayman Island Time Deposit with State Street Bank & Trust Co.
4.50% due 6/2/97 (cost $3,252,000)................................... $3,252,000 $ 3,252,000
-------------
TOTAL INVESTMENTS --
(cost $29,940,848) 104.6% 33,081,942
Liabilities in excess of other assets -- (4.6) (1,464,423)
------ -------------
NET ASSETS -- 100.0% $31,617,519
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
- ---------------------
58
<PAGE> 60
- ---------------------
SUNAMERICA SERIES TRUST
VENTURE VALUE PORTFOLIO INVESTMENT PORTFOLIO -- MAY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 92.5% SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY -- 3.0%
Automotive -- 0.5%
General Motors Corp. ................................................ 61,100 $ 3,497,975
Housing -- 2.0%
Masco Corp. ......................................................... 401,900 15,623,863
Retail -- 0.5%
Harcourt General, Inc. .............................................. 79,800 3,780,525
------------
22,902,363
------------
CONSUMER STAPLES -- 6.6%
Food, Beverage & Tobacco -- 6.3%
American Brands, Inc. ............................................... 4,200 205,800
Archer-Daniels-Midland Co. .......................................... 536,405 10,728,100
Coca-Cola Co. ....................................................... 110,700 7,555,275
Nestle SA ADR ....................................................... 106,400 6,618,644
Philip Morris Cos., Inc. ............................................ 474,300 20,869,200
Tyson Foods, Inc., Class A .......................................... 129,900 2,662,950
Household Products -- 0.3%
Kimberly-Clark Corp. ................................................ 43,200 2,165,400
Maytag Corp. ........................................................ 4,200 112,350
------------
50,917,719
------------
ENERGY -- 8.9%
Energy Services -- 7.7%
Amoco Corp. ......................................................... 1,400 125,125
Burlington Resources, Inc. .......................................... 241,800 11,243,700
Chevron Corp. ....................................................... 8,100 567,000
Cooper Cameron Corp.+ ............................................... 93,100 7,622,562
EVI, Inc. ........................................................... 160,000 6,020,000
Exxon Corp. ......................................................... 24,800 1,469,400
Falcon Drilling Co., Inc.+ .......................................... 19,800 908,325
Halliburton Co. ..................................................... 255,600 19,777,050
Mobil Corp. ......................................................... 1,100 153,863
Schlumberger Ltd. ................................................... 75,300 8,970,112
Sonat, Inc. ......................................................... 2,200 126,500
Tosco Corp. ......................................................... 60,600 1,977,075
Energy Sources -- 1.2%
Amerada Hess Corp. .................................................. 1,800 96,300
Atlantic Richfield Co. .............................................. 2,400 349,200
Edison International ................................................ 700 16,363
Noble Affiliates, Inc. .............................................. 214,857 9,050,851
------------
68,473,426
------------
FINANCE -- 37.6%
Banks -- 11.3%
Banc One Corp. ...................................................... 271,180 11,728,535
BankAmerica Corp. ................................................... 152,200 17,788,375
Barnett Banks, Inc. ................................................. 93,600 4,925,700
Citicorp. ........................................................... 131,375 15,026,016
First Bank Systems, Inc. ............................................ 133,200 10,922,400
</TABLE>
---------------------
59
<PAGE> 61
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Banks (continued)
First Union Corp. ................................................... 2,000 $ 171,750
Golden West Financial Corp. ......................................... 73,900 5,006,725
Wells Fargo & Co. ................................................... 82,200 21,659,700
Financial Services -- 13.8%
American Express Co. ................................................ 388,000 26,966,000
Dean Witter, Discover & Co. ......................................... 231,100 9,532,875
Donaldson Lufkin & Jenrette, Inc. ................................... 137,500 7,235,937
Federal Home Loan Mortgage Corp. .................................... 343,000 11,319,000
Morgan (J.P.) & Co., Inc. ........................................... 82,600 8,879,500
Morgan Stanley Group, Inc. .......................................... 170,500 11,508,750
State Street Corp. .................................................. 239,000 10,665,375
TCF Financial Corp. ................................................. 45,000 1,912,500
Travelers Group, Inc. ............................................... 331,233 18,176,411
Insurance -- 11.9%
20th Century Industries ............................................. 149,100 2,870,175
Allstate Corp. ...................................................... 209,595 15,431,432
American International Group, Inc. .................................. 42,600 5,766,975
Berkley (W.R.) Corp. ................................................ 137,100 7,112,062
Chubb Corp. ......................................................... 185,200 11,297,200
General Re Corp. .................................................... 164,000 28,741,000
NAC Reinsurance Corp. ............................................... 34,700 1,383,663
Progressive Corp., Ohio ............................................. 103,100 8,157,787
Transatlantic Holdings, Inc. ........................................ 91,300 8,182,762
UNUM Corp. .......................................................... 41,700 3,299,513
Investment Companies -- 0.6%
Morgan Stanley Asia-Pacific Fund .................................... 417,967 4,388,654
------------
290,056,772
------------
HEALTHCARE -- 3.9%
Drugs -- 2.8%
American Home Products Corp. ........................................ 2,200 167,750
Bristol-Myers Squibb Co. ............................................ 67,900 4,982,163
Lilly (Eli) & Co. ................................................... 45,800 4,259,400
Merck & Co., Inc. ................................................... 25,600 2,300,800
Pfizer, Inc. ........................................................ 93,700 9,639,387
Medical Products -- 1.1%
Johnson & Johnson Co. ............................................... 56,400 3,376,950
Novartis AG ADR ..................................................... 75,900 5,150,597
------------
29,877,047
------------
INDUSTRIAL & COMMERCIAL -- 7.0%
Aerospace & Military Technology -- 1.3%
Boeing Co. .......................................................... 99,900 10,514,475
Business Services -- 0.6%
ACNielsen Corp.+ .................................................... 133 2,244
Cognizant Corp.+ .................................................... 400 14,800
Dun & Bradstreet Corp. .............................................. 400 10,450
Fluor Corp. ......................................................... 87,600 4,631,850
NCR Corp.+ .......................................................... 912 29,640
Waste Management Inc. ............................................... 1,400 44,450
Electrical Equipment -- 0.1%
General Electric Co. ................................................ 12,200 736,575
Machinery -- 1.3%
Smith International, Inc.+ .......................................... 186,800 9,783,650
</TABLE>
- ---------------------
60
<PAGE> 62
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Transportation -- 3.7%
Burlington Northern Santa Fe ........................................ 204,200 $ 16,948,600
Illinois Central Corp. .............................................. 85,350 3,083,269
Union Pacific Corp. ................................................. 123,500 8,367,125
------------
54,167,128
------------
INFORMATION & ENTERTAINMENT -- 6.4%
Broadcasting & Media -- 3.6%
AirTouch Communications, Inc.+ ...................................... 408,800 11,395,300
Gannett Co., Inc. ................................................... 95,200 8,806,000
News Corp., Ltd. ADR ................................................ 273,700 4,037,075
Tribune Co. ......................................................... 90,700 3,922,775
Washington Post Co., Class B ........................................ 100 38,562
Leisure & Tourism -- 2.8%
Disney (Walt) Co. ................................................... 54,600 4,470,375
McDonald's Corp. .................................................... 337,800 16,974,450
------------
49,644,537
------------
INFORMATION TECHNOLOGY -- 14.7%
Communication Equipment -- 0.1%
Molex, Inc. ......................................................... 24,625 960,375
Computers & Business Equipment -- 8.2%
Hewlett-Packard Co. ................................................. 499,500 25,724,250
International Business Machines Corp. ............................... 364,000 31,486,000
Komag, Inc.+ ........................................................ 210,800 6,086,850
Electronics -- 5.0%
Intel Corp. ......................................................... 150,900 22,861,350
Motorola, Inc. ...................................................... 148,000 9,823,500
Novellus Systems, Inc.+ ............................................. 67,000 5,485,625
Software -- 0.4%
Sun Microsystems, Inc.+ ............................................. 91,800 2,960,550
Telecommunications -- 1.0%
360 Communications Co.+ ............................................. 302,100 5,702,137
Globalstar Telecommunications Ltd.+ ................................. 21,148 597,431
Loral Space & Communications Corp.+ ................................. 83,200 1,393,600
Lucent Technologies, Inc. ........................................... 4,745 301,901
------------
113,383,569
------------
MATERIALS -- 2.0%
Chemicals -- 0.0%
Dow Chemical Co. .................................................... 600 50,025
Forest Products -- 0.8%
Fort Howard Corp.+ .................................................. 130,800 6,008,625
International Paper Co. ............................................. 1,300 62,400
Union Camp Corp. .................................................... 2,000 105,000
Metals & Minerals -- 1.2%
Martin Marietta Materials, Inc. ..................................... 315,500 9,070,625
------------
15,296,675
------------
</TABLE>
---------------------
61
<PAGE> 63
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE -- 2.3%
Real Estate Investment Trusts -- 2.3%
Crescent Real Estate Equities Co. ................................... 339,900 $ 9,262,275
Federal Realty Investment Trust ..................................... 47,800 1,248,775
Kimco Realty Corp. .................................................. 10,550 332,325
Mid-Atlantic Realty Trust ........................................... 27,800 321,438
Saul Centers, Inc. .................................................. 30,500 499,437
Simon DeBartolo Group, Inc. ......................................... 400 12,100
United Dominion Realty Trust, Inc. .................................. 52,200 769,950
Vornado Realty Trust ................................................ 75,500 5,171,750
Weingarten Realty Investors ......................................... 15,200 651,700
------------
18,269,750
------------
UTILITIES -- 0.1%
Electric Utilities -- 0.0%
Carolina Power & Light Co. .......................................... 900 31,275
Duke Power Co. ...................................................... 1,400 63,000
Enova Corp. ......................................................... 500 11,813
New England Electric Systems ........................................ 500 17,312
Southern Co. ........................................................ 1,600 34,000
Wisconsin Energy Corp. .............................................. 800 19,300
Telephone -- 0.1%
AT&T Corp. .......................................................... 14,600 538,375
SBC Communications, Inc. ............................................ 1,200 70,200
------------
785,275
------------
TOTAL COMMON STOCK (cost $557,640,848) .............................. 713,774,261
------------
PREFERRED STOCK -- 0.6%
----------------------------------------------------------------------------------------------------
FINANCE -- 0.3%
Banks -- 0.1%
Banc One Corp., Series C convertible 3.50% .......................... 7,500 606,562
Financial Services -- 0.2%
Devon Financing Trust convertible 6.50% ............................. 19,000 1,330,000
------------
1,936,562
------------
INFORMATION & ENTERTAINMENT -- 0.2%
Broadcasting & Media -- 0.2%
AirTouch Communications, Inc. Class B convertible 6.00% ............. 20,880 615,960
AirTouch Communications, Inc. Class C convertible 4.25% ............. 13,297 644,905
------------
1,260,865
------------
REAL ESTATE -- 0.1%
Real Estate Investment Trusts -- 0.1%
Vornado Realty Trust convertible Series A 6.50% ..................... 9,100 464,100
------------
TOTAL PREFERRED STOCK (cost $3,462,721).............................. 3,661,527
------------
TOTAL INVESTMENT SECURITIES (cost $561,103,569)...................... 717,435,788
------------
</TABLE>
- ---------------------
62
<PAGE> 64
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 7.5% AMOUNT VALUE
<S> <C> <C>
<CAPTION>
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FEDERAL AGENCY OBLIGATIONS -- 7.5%
Federal Home Loan Bank Consolidated Discount Notes 5.35% due
6/03/97............................................................ $ 2,105,000 $ 2,104,374
Federal Home Loan Mortgage Discount Notes 5.36% due 6/02/97.......... 28,200,000 28,195,802
Federal Home Loan Mortgage Discount Notes 5.53% due 6/02/97.......... 15,350,000 15,347,642
Federal National Mortgage Association Discount Notes 5.40% due
6/06/97............................................................ 12,325,000 12,315,756
-------------
TOTAL SHORT-TERM SECURITIES (cost $57,963,574)....................... 57,963,574
-------------
TOTAL INVESTMENTS --
(cost $619,067,143) 100.6% 775,399,362
Liabilities in excess of other assets -- (0.6) (4,293,367)
------ -------------
NET ASSETS -- 100.0% $771,105,995
------ =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
63
<PAGE> 65
- ---------------------
SUNAMERICA SERIES TRUST
ALLIANCE GROWTH PORTFOLIO INVESTMENT PORTFOLIO -- MAY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 95.9% SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY -- 6.4%
Apparel & Textiles -- 1.7%
Nike, Inc. Class B.................................................... 154,700 $ 8,817,900
Retail -- 4.7%
Home Depot, Inc. ..................................................... 153,600 9,676,800
Kohl's Corp.+ ........................................................ 106,900 5,759,238
Sears, Roebuck & Co. ................................................. 168,700 8,287,387
-------------
32,541,325
-------------
CONSUMER STAPLES -- 10.9%
Food, Beverage & Tobacco -- 8.7%
Campbell Soup Co. .................................................... 52,700 2,424,200
Coca-Cola Co. ........................................................ 97,400 6,647,550
Philip Morris Cos., Inc. ............................................. 738,400 32,489,600
Wrigley, (Wm) Jr. Co. ................................................ 40,600 2,405,550
Household Products -- 2.2%
Gilette Co. .......................................................... 125,700 11,171,588
-------------
55,138,488
-------------
FINANCE -- 22.8%
Banks -- 5.0%
Chase Manhattan Corp. ................................................ 52,094 4,922,883
Citicorp ............................................................. 46,400 5,307,000
First Bank Systems, Inc. ............................................. 61,300 5,026,600
Norwest Corp. ........................................................ 131,020 7,009,570
U.S. Bancorp ......................................................... 49,800 3,056,475
Financial Services -- 16.2%
Dean Witter, Discover & Co. .......................................... 36,300 1,497,375
Federal National Mortgage Association ................................ 374,000 16,315,750
First Data Corp. ..................................................... 232,500 9,300,000
Household International, Inc. ........................................ 156,900 15,415,425
MBNA Corp. ........................................................... 598,200 20,264,025
Merrill Lynch & Co., Inc. ............................................ 84,300 8,935,800
Morgan Stanley Group, Inc. ........................................... 92,700 6,257,250
Washington Mutual, Inc. .............................................. 72,700 4,043,937
Insurance -- 1.6%
Allstate Corp. ....................................................... 104,700 7,708,538
-------------
115,060,628
-------------
HEALTHCARE -- 13.0%
Drugs -- 7.4%
Amgen, Inc.+ ......................................................... 49,400 3,303,625
Merck & Co., Inc. .................................................... 193,400 17,381,825
Pfizer, Inc. ......................................................... 68,500 7,046,938
Schering-Plough Corp. ................................................ 108,900 9,882,675
Health Services -- 1.8%
United Healthcare Corp. .............................................. 155,600 8,791,400
</TABLE>
- ---------------------
64
<PAGE> 66
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE(continued)
Medical Products -- 3.8%
Abbott Laboratories, Inc. @ .......................................... 45,000 $ 2,835,000
Johnson & Johnson Co. ................................................ 150,600 9,017,175
Medtronic, Inc. ...................................................... 99,700 7,377,800
-------------
65,636,438
-------------
INDUSTRIAL & COMMERCIAL -- 5.5%
Aerospace & Military Technology -- 1.3%
AlliedSignal, Inc. ................................................... 63,500 4,873,625
McDonnell Douglas Corp. .............................................. 29,000 1,866,875
Electrical Equipment -- 1.3%
General Electric Co. ................................................. 107,600 6,496,350
Machinery -- 1.0%
Applied Materials, Inc.+.............................................. 77,400 5,050,350
Multi-Industry -- 1.9%
Tyco International Ltd. .............................................. 151,600 9,626,600
-------------
27,913,800
-------------
INFORMATION & ENTERTAINMENT -- 13.3%
Broadcasting & Media -- 2.3%
AirTouch Communications, Inc.+........................................ 199,200 5,552,700
Time Warner, Inc. .................................................... 127,100 5,910,150
Leisure & Tourism -- 11.0%
Disney (Walt) Co. .................................................... 135,900 11,126,812
McDonald's Corp. ..................................................... 132,200 6,643,050
Northwest Airlines Corp. Class A+..................................... 218,200 9,028,025
UAL Corp.+............................................................ 372,400 29,047,200
-------------
67,307,937
-------------
INFORMATION TECHNOLOGY -- 22.4%
Communication Equipment -- 3.6%
Ascend Communications, Inc.+.......................................... 55,100 3,071,825
Nokia Corp., Class A ADR ............................................. 228,200 15,061,200
Computers & Business Equipment -- 7.5%
Compaq Computer Corp.+................................................ 121,100 13,109,075
Dell Computer Corp.+.................................................. 107,800 12,127,500
Seagate Technology, Inc.+............................................. 309,300 12,565,312
Electronics -- 2.8%
Intel Corp. .......................................................... 83,900 12,710,850
Novellus Systems, Inc.+............................................... 16,700 1,367,313
Software -- 8.5%
Cisco Systems, Inc.+.................................................. 275,900 18,692,225
Microsoft Corp. ...................................................... 155,700 19,306,800
Oracle Systems Corp.+................................................. 111,500 5,198,687
-------------
113,210,787
-------------
REAL ESTATE -- 1.2%
Real Estate Companies -- 1.2%
Green Tree Financial Corp. ........................................... 172,400 6,034,000
-------------
</TABLE>
---------------------
65
<PAGE> 67
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 0.4%
Telephone -- 0.4%
WorldCom, Inc.+....................................................... 74,300 $ 2,201,138
-------------
TOTAL COMMON STOCK (cost $409,785,134)................................ 485,044,541
-------------
WARRANTS -- 4.6%+
----------------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 4.6%
Electronics -- 4.6%
Intel Corp. 3/14/98 (cost $3,321,125)................................. 211,000 23,368,250
-------------
TOTAL INVESTMENT SECURITIES (cost $413,106,259)....................... 508,412,791
-------------
PRINCIPAL
SHORT-TERM SECURITIES -- 0.6% AMOUNT
----------------------------------------------------------------------------------------------------
TIME DEPOSIT -- 0.6%
Cayman Island Time Deposit with State Street Bank & Trust Co.
4.50% due 6/2/97 @.................................................. $2,750,000 2,750,000
-------------
U.S. GOVERNMENT -- 0.0%
United States Treasury Bills 5.26% due 6/19/97 @...................... 200,000 199,488
-------------
TOTAL SHORT-TERM SECURITIES (cost $2,949,488)......................... 2,949,488
-------------
TOTAL INVESTMENTS --
(cost $416,055,747) 101.1% 511,362,279
Liabilities in excess of other assets -- (1.1) (5,533,716)
------ -------------
NET ASSETS -- 100.0% $505,828,563
------ =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository 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> <C>
-----------------------------------------------------------------------------------------------------------
<CAPTION>
VALUE AT
NUMBER OF EXPIRATION TRADE VALUE AS OF UNREALIZED
CONTRACTS DESCRIPTION DATE DATE MAY 31, 1997 APPRECIATION
-----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
12 Long Standard & Poor's 500 Index.... June 1997 $4,826,700 $ 5,103,600 $276,900
===========
</TABLE>
See Notes to Financial Statements
- ---------------------
66
<PAGE> 68
- ---------------------
SUNAMERICA SERIES TRUST
GROWTH/PHOENIX INVESTMENT
COUNSEL PORTFOLIO INVESTMENT PORTFOLIO -- MAY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 92.9% SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY -- 10.5%
Housing -- 0.7%
Masco Corp. .......................................................... 35,000 $ 1,360,625
Retail -- 9.8%
American Stores Co. .................................................. 100,000 4,550,000
Costco Companies, Inc. ............................................... 125,000 4,218,750
CVS Corp. ............................................................ 50,000 2,393,750
Lowe's Cos., Inc. .................................................... 40,000 1,575,000
Safeway, Inc.+........................................................ 60,000 2,700,000
Toys R Us, Inc.+...................................................... 46,000 1,431,750
Wal-Mart Stores, Inc. ................................................ 75,000 2,231,250
------------
20,461,125
------------
CONSUMER STAPLES -- 6.8%
Food, Beverage & Tobacco -- 4.3%
ConAgra, Inc. ........................................................ 50,000 3,006,250
PepsiCo, Inc. ........................................................ 70,000 2,572,500
Seagram Co., Ltd. .................................................... 70,000 2,817,500
Household Products -- 2.5%
Unilever NV ADR....................................................... 25,000 4,843,750
------------
13,240,000
------------
ENERGY -- 11.9%
Energy Services -- 6.2%
Baker Hughes, Inc. ................................................... 70,000 2,625,000
Burlington Resources, Inc. ........................................... 40,000 1,860,000
Diamond Offshore Drilling, Inc.+...................................... 30,000 2,133,750
Halliburton Co. ...................................................... 25,000 1,934,375
Schlumberger Ltd. .................................................... 30,000 3,573,750
Energy Sources -- 5.7%
Apache Corp. ......................................................... 85,000 2,911,250
Elf Aquitaine ADR..................................................... 90,000 4,691,250
ENSCO International, Inc.+............................................ 50,000 2,493,750
Louisiana Land & Exploration Co. ..................................... 20,000 1,030,000
------------
23,253,125
------------
FINANCE -- 12.7%
Banks -- 0.7%
KeyCorp. ............................................................. 25,000 1,359,375
Financial Services -- 7.1%
American Express Co. ................................................. 45,000 3,127,500
Equifax, Inc. ........................................................ 90,000 2,812,500
Federal Home Loan Mortgage Corp. ..................................... 85,000 2,805,000
Federal National Mortgage Association................................. 55,000 2,399,375
Travelers Group, Inc. ................................................ 50,000 2,743,750
</TABLE>
---------------------
67
<PAGE> 69
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance -- 4.9%
Aetna, Inc. .......................................................... 35,000 $ 3,535,000
Allstate Corp. ....................................................... 45,000 3,313,125
American International Group, Inc. ................................... 20,000 2,707,500
------------
24,803,125
------------
HEALTHCARE -- 14.6%
Drugs -- 10.2%
American Home Products Corp. ......................................... 50,000 3,812,500
Amgen, Inc.+.......................................................... 60,000 4,012,500
Bristol-Myers Squibb Co. ............................................. 35,000 2,568,125
Elan Corp. PLC ADR+................................................... 35,000 1,426,250
Lilly (Eli) & Co. .................................................... 20,000 1,860,000
Merck & Co., Inc. .................................................... 20,000 1,797,500
SmithKline Beecham PLC ADR ........................................... 50,000 4,375,000
Health Services -- 2.6%
Tenet Healthcare Corp.+............................................... 100,000 2,750,000
United Healthcare Corp. .............................................. 40,000 2,260,000
Medical Products -- 1.8%
Johnson & Johnson Co. ................................................ 60,000 3,592,500
------------
28,454,375
------------
INDUSTRIAL & COMMERCIAL -- 6.9%
Aerospace & Military Technology -- 0.7%
Lockheed Martin Corp. ................................................ 15,000 1,404,375
Business Services -- 1.6%
Automatic Data Processing, Inc. ...................................... 20,000 982,500
USA Waste Services, Inc.+............................................. 60,000 2,175,000
Multi-Industry -- 3.5%
Rockwell International Corp. ......................................... 50,000 3,225,000
Sara Lee Corp. ....................................................... 40,000 1,635,000
Tyco International Ltd. .............................................. 30,000 1,905,000
Transportation -- 1.1%
Federal Express Corp.+................................................ 40,000 2,095,000
------------
13,421,875
------------
INFORMATION & ENTERTAINMENT -- 4.6%
Broadcasting & Media -- 4.6%
Knight Ridder, Inc. .................................................. 30,000 1,293,750
Tele-Communications, Inc., Class A+................................... 125,000 2,726,563
Time Warner, Inc. .................................................... 45,000 2,092,500
Westinghouse Electric Corp. .......................................... 145,000 2,936,250
------------
9,049,063
------------
INFORMATION TECHNOLOGY -- 14.8%
Communication Equipment -- 1.7%
Ascend Communications, Inc.+.......................................... 60,000 3,345,000
Computers & Business Equipment -- 1.5%
Storage Technology Corp.+............................................. 70,000 2,852,500
</TABLE>
- ---------------------
68
<PAGE> 70
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Electronics -- 9.0%
Adaptec, Inc.+........................................................ 25,000 $ 918,750
Analog Devices, Inc.+................................................. 35,000 936,250
Linear Technology Corp. .............................................. 40,000 2,005,000
LSI Logic Corp.+...................................................... 50,000 2,087,500
Motorola, Inc. ....................................................... 70,000 4,646,250
Philips Electronics NV ADR............................................ 125,000 7,000,000
Software -- 2.6%
Adobe Systems, Inc. .................................................. 55,000 2,454,375
Cisco Systems, Inc.+ ................................................. 40,000 2,710,000
------------
28,955,625
------------
MATERIALS -- 6.1%
Chemicals -- 2.7%
IMC Global, Inc. ..................................................... 50,000 1,956,250
Monsanto Co. ......................................................... 75,000 3,300,000
Metals & Minerals -- 3.4%
Aluminum Co. of America............................................... 20,000 1,472,500
W.R. Grace & Co....................................................... 50,000 2,612,500
Potash Corp. of Saskatchewan, Inc..................................... 30,000 2,463,750
------------
11,805,000
------------
UTILITIES -- 4.0%
Gas & Pipeline Utilities -- 1.4%
Transocean Offshore, Inc. ............................................ 40,000 2,760,000
Telephone -- 2.6%
Sprint Corp. ......................................................... 55,000 2,688,125
Telefonos de Mexico SA ADR............................................ 55,000 2,440,625
------------
7,888,750
------------
TOTAL INVESTMENT SECURITIES (cost $159,816,674)....................... 181,332,063
------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 7.0% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 5.1%
General Electric Capital Corp. 5.53% due 6/17/97...................... $3,515,000 3,506,361
Pfizer, Inc. 5.50% due 6/10/97........................................ 235,000 234,677
Preferred Receivables Funding 5.57% due 6/16/97....................... 295,000 294,315
Preferred Receivables Funding 5.58% due 6/12/97....................... 800,000 798,636
Private Export Funding Corp. 5.50% due 6/18/97........................ 600,000 598,441
Shell Oil Co. 5.48% due 6/26/97....................................... 1,850,000 1,842,960
Warner-Lambert Co. 5.51% due 6/24/97.................................. 2,695,000 2,685,513
------------
9,960,903
------------
FEDERAL AGENCY OBLIGATIONS -- 1.4%
Federal Home Loan Mortgage Discount Notes 5.49% due 6/13/97........... 1,665,000 1,661,953
Federal National Mortgage Association Discount Notes 5.46% due
6/16/97............................................................. 975,000 972,782
------------
2,634,735
------------
</TABLE>
---------------------
69
<PAGE> 71
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES (continued) AMOUNT VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
U.S. GOVERNMENT -- 0.5%
United States Treasury Bills 4.83% due 6/26/97........................ $ 925,000 $ 921,898
------------
TOTAL SHORT-TERM SECURITIES (cost $13,517,536)........................ 13,517,536
------------
TOTAL INVESTMENTS --
(cost $173,334,210) 99.9% 194,849,599
Other assets less liabilities -- 0.1 289,941
------ ------------
NET ASSETS -- 100.0% $195,139,540
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
- ---------------------
70
<PAGE> 72
- ---------------------
SUNAMERICA SERIES TRUST
PUTNAM GROWTH PORTFOLIO INVESTMENT PORTFOLIO -- MAY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 95.9% SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY -- 11.7%
Apparel & Textiles -- 0.8%
Liz Claiborne, Inc. .................................................. 32,600 $ 1,487,375
Housing -- 0.6%
American Standard Cos., Inc.+......................................... 23,100 1,157,888
Retail -- 10.3%
Avon Products, Inc. .................................................. 22,700 1,447,125
Consolidated Stores Corp.+............................................ 34,200 1,308,150
Costco Cos., Inc.+.................................................... 64,200 2,166,750
CVS Corp. ............................................................ 41,100 1,967,662
Dayton Hudson Corp. .................................................. 41,900 2,016,437
Revco D.S., Inc.+..................................................... 24,700 1,034,313
Safeway, Inc.+........................................................ 38,400 1,728,000
Sears, Roebuck & Co. ................................................. 52,200 2,564,325
Sherwin Williams Co. ................................................. 31,700 951,000
TJX Cos., Inc. ....................................................... 32,100 1,540,800
Walgreen Co. ......................................................... 36,000 1,683,000
-------------
21,052,825
-------------
CONSUMER STAPLES -- 9.3%
Food, Beverage & Tobacco -- 5.0%
Campbell Soup Co. .................................................... 29,400 1,352,400
Coca-Cola Co. ........................................................ 55,000 3,753,750
ConAgra, Inc. ........................................................ 22,800 1,370,850
Philip Morris Cos., Inc. ............................................. 19,700 866,800
Sara Lee Corp. ....................................................... 39,100 1,598,212
Household Products -- 4.3%
Clorox Co. ........................................................... 11,800 1,489,750
Gillette Co. ......................................................... 40,100 3,563,887
Procter & Gamble Co. ................................................. 19,900 2,743,713
-------------
16,739,362
-------------
ENERGY -- 6.3%
Energy Services -- 4.9%
Baker Hughes, Inc. ................................................... 22,300 836,250
Exxon Corp. .......................................................... 31,300 1,854,525
Halliburton Co. ...................................................... 25,900 2,004,012
Mobil Corp. .......................................................... 12,700 1,776,413
Schlumberger Ltd. .................................................... 18,600 2,215,725
Energy Sources -- 1.4%
British Petroleum Co. PLC ADR......................................... 17,700 2,564,287
-------------
11,251,212
-------------
</TABLE>
---------------------
71
<PAGE> 73
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 17.2%
Banks -- 7.7%
Banc One Corp. ....................................................... 40,100 $ 1,734,325
BankAmerica Corp. .................................................... 33,400 3,903,625
BankBoston Corp. ..................................................... 15,000 1,095,000
Barnett Banks, Inc. .................................................. 52,000 2,736,500
Citicorp.............................................................. 31,100 3,557,062
Comerica, Inc. ....................................................... 10,800 675,000
Financial Services -- 6.4%
American Express Co. ................................................. 39,800 2,766,100
Franklin Resources, Inc. ............................................. 22,500 1,456,875
MBNA Corp. ........................................................... 66,850 2,264,544
Travelers Group, Inc. ................................................ 61,000 3,347,375
Washington Mutual, Inc. .............................................. 30,600 1,702,125
Insurance -- 3.1%
American International Group, Inc. ................................... 20,700 2,802,263
Conseco, Inc. ........................................................ 44,700 1,788,000
MGIC Investment Corp. ................................................ 10,900 970,100
-------------
30,798,894
-------------
HEALTHCARE -- 14.3%
Drugs -- 8.6%
Bristol-Myers Squibb Co. ............................................. 40,400 2,964,350
Cardinal Health, Inc. ................................................ 34,500 2,009,625
Lilly (Eli) & Co. .................................................... 22,200 2,064,600
Merck & Co., Inc. .................................................... 41,300 3,711,837
Pfizer, Inc. ......................................................... 28,000 2,880,500
Warner-Lambert Co. ................................................... 18,000 1,813,500
Health Services -- 2.8%
HEALTHSOUTH Corp.+.................................................... 84,200 1,926,075
Oxford Health Plans, Inc.+............................................ 20,800 1,466,400
HBO & Co. ............................................................ 26,400 1,692,900
Medical Products -- 2.9%
Abbott Laboratories, Inc. ............................................ 55,900 3,521,700
United States Surgical Corp. ......................................... 47,600 1,606,500
-------------
25,657,987
-------------
INDUSTRIAL & COMMERCIAL -- 10.4%
Aerospace & Military Technology -- 3.4%
Boeing Co. ........................................................... 37,100 3,904,775
United Technologies Corp. ............................................ 27,800 2,234,425
Business Services -- 0.5%
Service Corp. International........................................... 25,800 909,450
Electrical Equipment -- 2.9%
General Electric Co. ................................................. 87,200 5,264,700
Machinery -- 1.0%
Applied Materials, Inc.+.............................................. 26,200 1,709,550
Multi-Industry -- 2.6%
Textron, Inc. ........................................................ 23,500 2,784,750
Tyco International Ltd. .............................................. 28,800 1,828,800
-------------
18,636,450
-------------
INFORMATION & ENTERTAINMENT -- 4.8%
Broadcasting & Media -- 2.0%
Gannett Co., Inc. .................................................... 38,300 3,542,750
</TABLE>
- ---------------------
72
<PAGE> 74
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT (continued)
Leisure & Tourism -- 2.8%
Disney (Walt) Co. .................................................... 30,000 $ 2,456,250
HFS, Inc.+............................................................ 12,100 651,888
Marriott International, Inc. ......................................... 33,700 1,946,175
-------------
8,597,063
-------------
INFORMATION TECHNOLOGY -- 15.8%
Communication Equipment -- 1.3%
Ascend Communications, Inc.+.......................................... 21,400 1,193,050
Tellabs, Inc.+........................................................ 22,400 1,125,600
Computers & Business Equipment -- 3.6%
Compaq Computer Corp.+................................................ 18,500 2,002,625
EMC Corp.+............................................................ 40,700 1,622,912
Honeywell, Inc. ...................................................... 40,400 2,939,100
Electronics -- 3.5%
Intel Corp. .......................................................... 22,400 3,393,600
Motorola, Inc. ....................................................... 40,900 2,714,738
Westinghouse Electric Corp. .......................................... 9,700 196,425
Software -- 7.4%
BMC Software, Inc.+................................................... 29,600 1,602,100
Computer Associates International, Inc. .............................. 52,400 2,868,900
Microsoft Corp.+...................................................... 43,000 5,332,000
Parametric Technology Corp.+.......................................... 30,400 1,364,200
Peoplesoft, Inc.+..................................................... 40,400 2,090,700
-------------
28,445,950
-------------
MATERIALS -- 3.6%
Chemicals -- 3.6%
du Pont (E.I.) de Nemours & Co. ...................................... 19,900 2,166,613
Monsanto Co. ......................................................... 41,900 1,843,600
Praxair, Inc. ........................................................ 45,400 2,389,175
-------------
6,399,388
-------------
UTILITIES -- 2.5%
Gas & Pipeline Utilities -- 1.0%
Sonat, Inc. .......................................................... 32,800 1,886,000
Telephone -- 1.5%
Sprint Corp. ......................................................... 54,700 2,673,463
-------------
4,559,463
-------------
TOTAL INVESTMENT SECURITIES (cost $148,319,663)....................... 172,138,594
-------------
</TABLE>
---------------------
73
<PAGE> 75
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 4.0% AMOUNT VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
REPURCHASE AGREEMENT -- 4.0%
Agreement with Union Bank of Switzerland, bearing interest of 5.52%
dated 5/30/97, to be repurchased 6/2/97 in the amount of $7,236,327
and collateralized by $6,110,000 U.S. Treasury Notes 10.375% due
11/15/09 (cost $7,233,000).......................................... $7,233,000 $ 7,233,000
-------------
TOTAL INVESTMENTS --
(cost $155,552,663) 99.9% 179,371,594
Other assets less liabilities -- 0.1 100,019
------ -------------
NET ASSETS -- 100.0% $179,471,613
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
- ---------------------
74
<PAGE> 76
- ---------------------
SUNAMERICA SERIES TRUST
AGGRESSIVE GROWTH PORTFOLIO INVESTMENT PORTFOLIO -- MAY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 93.5% SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY -- 7.5%
Apparel & Textiles -- 3.3%
Footstar, Inc.+........................................................ 31,800 $ 707,550
Goody's Family Clothing, Inc.+......................................... 5,000 115,313
Liz Claiborne, Inc..................................................... 5,000 228,125
Stride Rite Corp....................................................... 19,000 289,750
Tommy Hilfiger Corp.+.................................................. 5,000 222,500
Warnaco Group, Inc., Class A........................................... 10,000 327,500
Wolverine World Wide, Inc.............................................. 9,000 232,875
Household Products -- 0.6%
Silgan Holdings, Inc.+................................................. 12,000 360,000
Retail -- 3.6%
Amway Asia Pacific Ltd................................................. 21,800 1,008,250
CVS Corp............................................................... 10,000 478,750
Genesco, Inc........................................................... 10,000 137,500
Guitar Center, Inc.+................................................... 10,000 191,250
Kenneth Cole Productions, Inc.+........................................ 10,000 158,750
Michaels Stores, Inc.+................................................. 15,000 296,250
------------
4,754,363
------------
CONSUMER STAPLES -- 3.5%
Food, Beverage & Tobacco -- 0.4%
Flowers Industries, Inc................................................ 15,000 264,375
Household Products -- 3.1%
Samsonite Corp.+....................................................... 37,000 1,660,375
Scotts Co., Class A+................................................... 10,000 292,500
------------
2,217,250
------------
ENERGY -- 9.3%
Energy Services -- 7.9%
Cooper Cameron Corp.+.................................................. 10,000 818,750
Diamond Offshore Drilling, Inc.+....................................... 7,000 497,875
Falcon Drilling Co., Inc.+............................................. 20,000 917,500
Global Marine, Inc.+................................................... 20,000 450,000
Marine Drilling Co., Inc.+............................................. 10,000 201,250
Nabors Industries, Inc.+............................................... 10,000 224,375
Noble Drilling Corp.+.................................................. 28,000 609,000
Patterson Energy, Inc.+................................................ 10,100 364,231
Tidewater, Inc......................................................... 3,000 126,375
Trico Marine Services, Inc.+........................................... 18,200 682,500
Varco International, Inc.+............................................. 6,400 176,000
Energy Sources -- 1.4%
KN Energy, Inc......................................................... 10,000 421,250
Noble Affiliates, Inc.................................................. 5,000 210,625
Smith International, Inc.+............................................. 5,000 261,875
------------
5,961,606
------------
</TABLE>
---------------------
75
<PAGE> 77
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 10.8%
Banks -- 4.0%
First American Corp.................................................... 33,800 $ 1,233,700
Hamilton Bancorp, Inc.+................................................ 20,000 430,000
Long Island Bancorp, Inc............................................... 10,367 361,549
PNC Bank Corp.......................................................... 6,400 268,000
Summit Bancorp......................................................... 5,000 246,875
Financial Services -- 5.0%
Alex Brown, Inc........................................................ 3,000 201,000
Allmerica Financial Corp............................................... 5,000 181,875
Associates First Capital Corp., Class A................................ 5,000 236,250
Equitable of Iowa Cos.................................................. 10,000 553,750
Interra Financial, Inc................................................. 9,000 391,500
Lehman Brothers Holdings, Inc.......................................... 5,000 201,875
Metris Cos., Inc.+..................................................... 9,500 268,375
Nationwide Financial Services, Inc. Class A+........................... 15,000 421,875
Ocwen Asset Investment Corp............................................ 40,000 725,000
Insurance -- 1.8%
Conseco, Inc........................................................... 10,000 400,000
Hartford Life, Inc..................................................... 15,000 502,500
Penn Treaty American Corp.+............................................ 10,000 273,750
------------
6,897,874
------------
HEALTHCARE -- 5.8%
Drugs -- 2.2%
IDEC Pharmaceuticals Corp.+............................................ 15,000 337,500
Mylan Laboratories, Inc................................................ 10,000 151,250
Teva Pharmaceutical Industries Ltd. ADR................................ 15,100 906,000
Health Services -- 3.0%
HBO & Co............................................................... 5,000 320,625
Maxicare Health Plans, Inc.+........................................... 25,000 600,000
NovaCare, Inc.+........................................................ 50,000 631,250
Oxford Health Plans, Inc.+............................................. 3,000 211,500
Sola International, Inc.+.............................................. 5,000 143,125
Medical Products -- 0.6%
Guidant Corp........................................................... 5,000 388,125
------------
3,689,375
------------
INDUSTRIAL & COMMERCIAL -- 12.0%
Aerospace & Military Technology -- 1.1%
Boeing Co.............................................................. 210 22,103
REMEC, Inc.+........................................................... 21,900 659,737
Business Services -- 3.3%
American Disposal Services, Inc.+...................................... 10,000 200,000
Applied Graphics Technologies, Inc.+................................... 15,500 511,500
Budget Group, Inc.+.................................................... 10,000 278,750
Hvide Marine, Inc. Class A+............................................ 3,000 72,000
Norrell Corp........................................................... 7,300 235,425
Personal Group of America, Inc.+....................................... 15,000 455,625
Philip Services Corp.+................................................. 10,000 146,250
USA Waste Services, Inc.+.............................................. 5,000 181,250
Electrical Equipment -- 1.9%
ASM Lithography Holdings NV+........................................... 14,000 731,500
Kulicke & Soffa Industries, Inc.+...................................... 15,000 506,250
Machinery -- 0.6%
Perkin-Elmer Corp...................................................... 5,000 380,000
</TABLE>
- ---------------------
76
<PAGE> 78
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Multi-Industry -- 2.4%
Corning, Inc........................................................... 15,000 $ 755,625
Rockwell International Corp............................................ 5,000 322,500
Tyco International Ltd................................................. 7,000 444,500
Transportation -- 2.7%
Caliber System, Inc.................................................... 25,000 800,000
CNF Transportation, Inc................................................ 5,000 161,250
Consolidated Freightways Corp.+........................................ 4,000 49,500
Ryanair Holdings PLC ADR+.............................................. 30,000 742,500
------------
7,656,265
------------
INFORMATION & ENTERTAINMENT -- 7.2%
Broadcasting & Media -- 1.1%
Mecklermedia Corp.+.................................................... 10,400 200,200
Tele-Communications, Inc., Class A+.................................... 15,000 327,188
Univision Communications, Inc., Class A+............................... 5,000 180,000
Communication Equipment -- 1.1%
ANADIGICS, Inc.+....................................................... 21,050 697,281
Leisure & Tourism -- 5.0%
Capstar Hotel Co.+..................................................... 20,000 600,000
Delta Air Lines, Inc................................................... 5,000 468,750
Four Seasons Hotels, Inc............................................... 7,000 182,000
Interstate Hotels Co.+................................................. 15,000 393,750
Ryan's Family Steak Houses, Inc.+...................................... 45,000 410,625
Southwest Airlines Co.................................................. 15,000 386,250
UAL Corp.+............................................................. 5,000 390,000
USAirways Group, Inc.+................................................. 10,000 347,500
------------
4,583,544
------------
INFORMATION TECHNOLOGY -- 30.3%
Communication Equipment -- 5.1%
3D Labs, Inc., Ltd.+................................................... 15,000 480,000
Ascend Communications, Inc.+........................................... 7,000 390,250
Bay Networks, Inc.+.................................................... 10,000 245,000
Digital Microwave Corp.+............................................... 2,300 71,300
DSC Communications Corp.+.............................................. 5,000 127,813
Newbridge Networks Corp.+.............................................. 10,000 401,250
QUALCOMM, Inc.+........................................................ 5,000 241,250
Tekelec, Inc.+......................................................... 10,000 350,000
Tellabs, Inc.+......................................................... 12,000 603,000
World Access Inc.+..................................................... 20,000 332,500
Computers & Business Equipment -- 4.9%
Cabletron Systems, Inc.+............................................... 5,000 220,000
CHS Electronics, Inc.+................................................. 25,000 621,875
Compaq Computer Corp.+................................................. 3,000 324,750
Computer Task Group Inc.+.............................................. 10,000 611,250
Dell Computer Corp..................................................... 6,000 675,000
International Business Machines Corp................................... 2,000 173,000
Micron Technology, Inc.+............................................... 5,000 212,500
Storage Technology Corp.+.............................................. 7,500 305,625
Electronics -- 13.7%
ACE*COMM Corp.+........................................................ 10,000 162,500
Advanced Micro Devices, Inc.+.......................................... 8,000 320,000
Altera Corp............................................................ 5,000 265,000
Analog Devices, Inc.+.................................................. 10,000 267,500
Credence Systems Corp.+................................................ 10,000 295,000
</TABLE>
---------------------
77
<PAGE> 79
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Electronics (continued)
Cypress Semiconductor Corp.+........................................... 20,000 $ 285,000
Diebold, Inc........................................................... 6,157 230,887
Flanders Corp.+........................................................ 14,200 101,175
Hadco Corp.+........................................................... 5,000 300,312
Jabil Circuit, Inc..................................................... 10,000 585,625
Linear Technology Corp................................................. 12,000 601,500
LSI Logic Corp.+....................................................... 10,000 417,500
Maxim Integrated Products, Inc.+....................................... 6,000 322,500
Micrel, Inc.+.......................................................... 3,000 159,000
Motorola, Inc.......................................................... 5,000 331,875
National Semiconductor Corp.+.......................................... 10,000 281,250
SGS Thomson Microelectronics NV+....................................... 5,000 417,500
Sierra Semi-Conductor Corp.+........................................... 20,000 482,500
Texas Instruments, Inc................................................. 10,000 898,750
Uniphase Corp.+........................................................ 5,000 262,500
Veeco Instruments, Inc.+............................................... 36,000 1,494,000
Vitesse Semiconductor Corp.+........................................... 4,500 161,438
Zitel Corp.+........................................................... 5,000 116,250
Software -- 4.8%
Applied Voice Technology, Inc.+........................................ 10,000 147,500
Baan Co. NV+........................................................... 25,000 1,506,250
Cisco Systems, Inc..................................................... 3,000 203,250
Compuware Corp.+....................................................... 5,000 231,875
Keane, Inc.+........................................................... 13,000 732,875
Microsoft Corp......................................................... 2,000 248,000
Telecommunications -- 1.8%
COLT Telecommunications Group PLC ADR+................................. 5,000 89,375
Lucent Technologies, Inc............................................... 10,000 636,250
Pacific Gateway Exchange, Inc.+........................................ 10,000 265,000
Vimpel-Communication SP ADR+........................................... 5,000 149,375
------------
19,355,675
------------
MATERIALS -- 4.6%
Chemicals -- 2.8%
Air Products & Chemicals, Inc.......................................... 10,000 777,500
Fuller (H.B.) Co....................................................... 15,000 828,750
Praxair, Inc........................................................... 4,000 210,500
Forest Products -- 0.9%
Consolidated Papers, Inc............................................... 2,000 109,000
Fort Howard Corp.+..................................................... 10,000 459,375
Metals & Minerals -- 0.9%
Precision Castparts Corp............................................... 5,000 312,500
Special Metals Corp.+.................................................. 13,000 245,375
------------
2,943,000
------------
REAL ESTATE -- 1.6%
Real Estate Investment Trusts -- 1.6%
Innkeepers USA Trust................................................... 20,000 280,000
Starwood Lodging Trust................................................. 15,000 558,750
Westfield America, Inc.+............................................... 10,000 152,500
------------
991,250
------------
</TABLE>
- ---------------------
78
<PAGE> 80
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 0.9%
Gas & Pipeline Utilities -- 0.9%
El Paso Natural Gas Co................................................. 10,000 $ 592,500
------------
TOTAL COMMON STOCK (cost $53,264,187).................................. 59,642,702
------------
WARRANTS -- 0.1%+
----------------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 0.1%
Electronics -- 0.1%
Intel Corp. 3/14/98 (cost $54,375)..................................... 500 55,375
------------
TOTAL INVESTMENT SECURITIES (cost $53,318,562)......................... 59,698,077
------------
PRINCIPAL
REPURCHASE AGREEMENT -- 10.7% AMOUNT
----------------------------------------------------------------------------------------------------
Joint Repurchase Agreement Account (Note 3) (cost $6,860,000).......... $6,860,000 6,860,000
------------
TOTAL INVESTMENTS -- (cost $60,178,562) 104.3% 66,558,077
Liabilities in excess of other assets -- (4.3) (2,743,683)
------ ------------
NET ASSETS -- 100.0% $63,814,394
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
79
<PAGE> 81
- ---------------------
SUNAMERICA SERIES TRUST
GLOBAL EQUITIES PORTFOLIO INVESTMENT PORTFOLIO -- MAY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 91.2% SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
ARGENTINA -- 0.3%
Telecommunications Argentina ADR (Information Technology)............ 15,000 $ 800,625
------------
AUSTRALIA -- 1.4%
Coca-Cola Amatil Ltd. (Consumer Staples)............................. 96,331 1,115,265
Mayne Nickless Ltd. (Industrial & Commercial)........................ 37,000 220,382
Normandy Mining Ltd. (Materials)..................................... 658,000 806,901
Qantas Airways Ltd. (Industrial & Commercial)........................ 50,866 107,706
Western Mining Corp. Holdings Ltd. (Materials)+...................... 119,342 771,737
Woolworths Ltd. (Consumer Discretionary)+............................ 413,652 1,285,475
------------
4,307,466
------------
BELGIUM -- 0.5%
Barco NV (Industrial & Commercial)................................... 3,189 569,303
Delhaize Le-Lion SA (Consumer Discretionary)+........................ 6,400 318,277
Kredietbank NV (Finance)............................................. 1,740 716,166
------------
1,603,746
------------
BRAZIL -- 0.3%
Telecomunicacoes Brasileras SA ADR (Information Technology).......... 6,000 834,436
------------
DENMARK -- 0.2%
Den Danske Bank (Finance)............................................ 7,300 693,765
------------
FINLAND -- 0.9%
Huhtamaki OY (Industrial & Commercial)............................... 9,100 399,394
Orion-yhtyma OY (Healthcare)......................................... 21,000 815,645
Rauma OY (Materials)................................................. 943 21,976
Rautaruukki OY (Materials)........................................... 70,482 670,697
UPM-Kymmene OY (Materials)........................................... 18,500 424,660
Valmet Corp. (Industrial & Commercial)............................... 23,300 420,814
------------
2,753,186
------------
FRANCE -- 4.1%
Assurance General de France (Finance)+............................... 27,210 826,959
Banque Nationale de Paris (Finance).................................. 20,800 853,309
Bouygues SA (Consumer Discretionary)................................. 7,905 684,189
Compagnie Bancaire SA (Finance)...................................... 81 8,963
Compagnie Generale des Eaux (Multi-industry)......................... 6,520 801,649
Elf Aquitaine SA (Energy)............................................ 15,070 1,505,800
Groupe Saint Louis (Materials)....................................... 1,594 367,404
Legrand SA (Information Technology).................................. 4,800 772,209
Legris Industries SA (Industrial & Commercial)....................... 15,250 660,219
Promodes (Consumer Discretionary).................................... 2,490 842,993
Seita (Consumer Staples)............................................. 23,000 782,253
Societe de Immeubles (Real Estate)................................... 5,195 325,666
Societe Generale (Finance)........................................... 6,440 714,862
Technip (Industrial & Commercial).................................... 7,550 775,318
Total SA, Series B (Energy).......................................... 20,030 1,831,441
Unibail SA (Finance)................................................. 5,730 556,667
Usinor Sacilor (Materials)........................................... 33,200 497,891
------------
12,807,792
------------
</TABLE>
- ---------------------
80
<PAGE> 82
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
GERMANY -- 2.2%
Adidas AG (Consumer Discretionary)................................... 6,400 $ 672,167
Bayer AG (Multi-industry)............................................ 24,500 949,696
Continental AG (Consumer Discretionary).............................. 46,900 1,065,547
Merck KGAA (Healthcare).............................................. 15,200 624,773
Schmalbach-Lubeca AG (Materials)..................................... 5,800 1,316,717
VEBA AG (Utilities).................................................. 28,970 1,637,413
Volkswagen AG (Consumer Discretionary)............................... 970 626,575
------------
6,892,888
------------
HONG KONG -- 2.1%
Asia Satellite Telecom Holdings Ltd. (Information Technology)+....... 15,000 42,008
Cheung Kong Holdings Ltd. (Real Estate).............................. 124,000 1,268,245
CITIC Pacific Ltd. (Information & Entertainment)..................... 148,000 846,151
Dao Heng Bank Group Ltd. (Finance)................................... 50,000 256,179
Dickson Concept Industries Ltd. (Industrial & Commercial)............ 84,500 316,255
First Pacific Co., Ltd. (Finance).................................... 488,137 623,676
Guangshen Railway Co., Ltd. ADR (Industrial & Commercial)+........... 15,600 374,400
Hang Seng Bank Ltd. (Finance)........................................ 47,000 564,109
Hong Kong & China Gas Co., Ltd. (Utilities).......................... 102,816 179,134
HSBC Holdings PLC (Finance).......................................... 20,000 606,569
Swire Pacific Ltd. Class A (Multi-industry).......................... 70,000 587,210
Television Broadcasting Ltd. (Information & Entertainment)........... 200,000 872,427
------------
6,536,363
------------
INDIA -- 0.4%
Bajaj Auto GDR (Consumer Discretionary).............................. 16,500 569,250
Bank of India GDR (Finance)+*........................................ 5,900 151,188
Industrial Credit & Investment Corp. of India Ltd. GDR (Finance)+.... 2,000 24,250
Industrial Credit & Investment Corp. of India Ltd. GDR (Finance)+*... 24,300 294,637
Videsh Sanchar Nigam Ltd. (Information Technology)................... 5,800 119,480
------------
1,158,805
------------
INDONESIA -- 0.3%
Perusahaan Persero Part Telekom ADR (Utilities)...................... 6,000 199,500
PT Indonesian Satellite Corp. alien shares (Information
Technology)........................................................ 195,000 581,192
PT Telekomunikasi Indonesia alien shares (Information Technology)+... 59,000 99,445
------------
880,137
------------
IRELAND -- 0.5%
Allied Irish Banks PLC (Finance)..................................... 170,000 1,295,927
Jefferson Smurfit Group (Materials)+................................. 145,000 391,379
------------
1,687,306
------------
ITALY -- 1.3%
Credito Italiano SpA (Finance)....................................... 470,000 698,988
ENI SpA (Energy)..................................................... 81,900 408,424
Istituto Mobiliare Italiano (Finance)................................ 63,900 558,882
Italgas-Societa Italiana per il Gas SpA (Utilities).................. 439,400 1,209,715
Montedison SpA (Multi-industry)...................................... 832,000 508,200
Parmalat Finanziar (Finance)......................................... 463,040 659,944
------------
4,044,153
------------
JAPAN -- 15.4%
Advantest Corp. (Industrial & Commercial)............................ 14,900 1,013,379
Amano Corp. (Industrial & Commercial)................................ 47,000 500,472
Asahi Glass Co., Ltd. (Materials).................................... 96,000 931,559
Bank of Tokyo-Mitsubishi Ltd. (Finance)+............................. 140,300 2,433,714
Bridgestone Corp. (Consumer Discretionary)........................... 18,000 406,526
Canon, Inc. (Information Technology)................................. 40,000 1,013,310
Dai Nippon Printing Co., Ltd. (Industrial & Commercial).............. 25,000 500,215
Daifuku Co., Ltd. (Industrial & Commercial).......................... 41,000 514,040
</TABLE>
---------------------
81
<PAGE> 83
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (continued)
Daito Trust Construction Co. (Industrial & Commercial)............... 95,130 $ 1,053,823
Daiwa Securities Co., Ltd. (Finance)................................. 142,000 1,045,032
DDI Corp. (Healthcare)............................................... 323 2,410,365
East Japan Railway Co. (Industrial & Commercial)..................... 102 503,650
Fuji Bank Ltd. (Finance)............................................. 113,000 1,455,560
Fuji Heavy Industries Ltd. (Consumer Discretionary).................. 189,000 988,416
Fuji Photo Film Co., Ltd. (Materials)................................ 12,000 464,749
Hirose Electric Co., Ltd. (Industrial & Commercial).................. 8,000 537,226
Honda Motor Co., Ltd. (Consumer Discretionary)....................... 59,000 1,732,761
Japan Securities Finance Co., Ltd. (Finance)......................... 57,000 538,428
Japan Tobacco, Inc. (Consumer Staples)............................... 213 1,629,738
Kokuyo Co., Ltd. (Industrial & Commercial)........................... 20,000 491,198
Mitsubishi Heavy Industries Ltd. (Industrial & Commercial)........... 76,000 546,913
Mitsui Marine & Fire Co., Ltd. (Finance)............................. 158,000 1,058,308
Mitsui Trust & Banking Co. (Finance)................................. 254,000 1,910,726
National House Industrial Co., Ltd. (Industrial & Commercial)........ 39,000 535,852
Nintendo Co., Ltd. (Information & Entertainment)..................... 7,900 617,346
Nippon Express Co., Ltd. (Industrial & Commercial)................... 64,000 497,381
Nippon Steel Corp. (Materials)....................................... 158,000 462,671
Nisshin Steel Co., Ltd. (Materials).................................. 209,000 520,481
Nomura Securities Co., Ltd. (Finance)................................ 129,000 1,528,725
Rohm Co. (Information Technology).................................... 24,000 2,493,774
Santen Pharmaceutical Co. (Healthcare)+.............................. 42,320 850,398
Sanwa Bank Ltd. (Finance)............................................ 83,000 1,062,001
Schlumberger Ltd. (Energy)........................................... 7,200 857,700
Seven-Eleven Japan Co., Ltd. (Consumer Discretionary)................ 11,400 825,264
Shimano, Inc. (Industrial & Commercial).............................. 29,000 555,346
Shiseido Co., Ltd. (Consumer Staples)................................ 34,000 496,350
Sony Corp. (Information Technology).................................. 19,000 1,600,601
Sumitomo Electric Industries Ltd. (Industrial & Commercial).......... 66,000 1,037,183
Sumitomo Marine & Fire Insurance Co., Ltd. (Finance)................. 66,000 498,755
Sumitomo Realty & Development Co., Ltd. (Real Estate)................ 136,000 1,068,613
Sumitomo Trust & Banking Co., Ltd. (Finance)......................... 191,000 2,640,704
Taisho Pharmaceutical Co., Ltd. (Healthcare)......................... 20,000 501,503
Takeda Chemical Industries Ltd. (Healthcare)......................... 10,000 253,328
TDK Corp. (Information Technology)................................... 32,000 2,456,677
Tokai Bank Ltd. (Finance)............................................ 62,000 510,056
Ube Industries Ltd. (Materials)...................................... 39,000 110,520
Yakult Honsha Co. (Consumer Staples)................................. 33,000 357,063
Yamanouchi Pharmaceutical Co., Ltd. (Healthcare)..................... 47,000 1,158,351
Yamatake-Honeywell (Information Technology).......................... 28,000 526,578
Yamazaki Baking Co. (Consumer Staples)............................... 21,000 357,063
------------
48,060,392
------------
KOREA -- 0.2%
Korea Electric Power Corp. (Utilities)............................... 7,000 224,565
Korea Electric Power Corp. ADR (Utilities)........................... 3,400 61,625
Pohang Iron & Steel Co., Ltd. ADR (Materials)........................ 11,000 319,000
------------
605,190
------------
MALAYSIA -- 1.4%
AMMB Holdings Bhd (Finance).......................................... 134,000 847,932
Berjaya Group Bhd (Industrial & Commercial).......................... 642,000 848,267
Malakoff Bhd (Industrial & Commercial)............................... 146,000 668,206
Malayan Banking Bhd (Finance)........................................ 30,000 316,393
Resorts World Bhd (Information & Entertainment)...................... 116,000 387,790
Telekom Malaysia Bhd (Information Technology)........................ 165,000 1,221,395
------------
4,289,983
------------
</TABLE>
- ---------------------
82
<PAGE> 84
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
MEXICO -- 0.5%
Fomento Economico Mexicano SA de CV (Consumer Staples)............... 155,000 $ 823,113
Panamerican Beverages, Inc. Class A ADR (Consumer Staples)........... 26,000 754,000
------------
1,577,113
------------
NETHERLANDS -- 3.0%
Akzo Nobel NV (Materials)............................................ 9,910 1,318,069
Fortis Amev NV (Finance)............................................. 41,900 1,719,589
Hunter Douglas NV (Industrial & Commercial).......................... 9,900 872,848
ING Groep NV (Finance)............................................... 39,000 1,722,289
Koninklijke Hoogovens NV (Materials)................................. 16,300 812,245
Koninklijke KNP BT (Materials)....................................... 40,400 832,166
SGS Thomson Microelectronics NV (Information Technology)............. 5,580 453,388
Stork NV (Industrial & Commercial)................................... 20,600 910,793
Vendex International NV (Consumer Discretionary)..................... 12,070 676,799
------------
9,318,186
------------
NEW ZEALAND -- 0.3%
Fletcher Challenge Ltd. forest shares (Industrial & Commercial)+..... 83,990 110,635
Lion Nathan Ltd. (Consumer Staples).................................. 105,000 275,173
Telecommunications Corp. of New Zealand Ltd. (Utilities)............. 86,000 413,393
------------
799,201
------------
NORWAY -- 0.6%
Bergesen D.Y. ASA (Industrial & Commercial).......................... 37,000 854,365
Den Norske Bank ASA (Finance)........................................ 152,000 595,284
Orkla ASA (Industrial & Commercial).................................. 6,100 531,738
------------
1,981,387
------------
PHILIPPINES -- 0.2%
Manila Electric Co. (Utilities)...................................... 110,348 619,201
Philippine Commerce International Bank (Finance)..................... 4,470 43,641
------------
662,842
------------
SINGAPORE -- 0.8%
Development Bank of Singapore Ltd. alien shares (Finance)............ 12,000 150,178
Overseas Chinese Banking Corp., Ltd. alien shares (Finance).......... 50,600 629,714
Overseas Union Bank Ltd. alien shares (Finance)...................... 58,000 397,399
Singapore Airlines Ltd. alien shares (Information & Entertainment)... 8,000 68,238
Singapore Press Holdings Ltd. alien shares (Information &
Entertainment)..................................................... 59,400 1,183,598
------------
2,429,127
------------
SOUTH KOREA -- 0.2%
SK Telecom Co., Ltd ADR (Information Technology)..................... 78,949 730,278
------------
SPAIN -- 1.1%
Banco Bilbao Vizcaya SA (Finance).................................... 13,500 956,281
Banco de Santander SA (Finance)...................................... 7,000 597,053
Tabacalera SA Series A (Consumer Staples)............................ 13,300 675,304
Telefonica de Espana SA (Utilities).................................. 42,500 1,225,962
------------
3,454,600
------------
SWEDEN -- 0.5%
Astra AB Class A (Healthcare)........................................ 30,133 485,941
Sparbanken Sverige AB (Finance)...................................... 34,900 684,384
Trygghansa AB (Finance).............................................. 27,000 494,633
------------
1,664,958
------------
SWITZERLAND -- 2.7%
Baloise Holdings (Finance)........................................... 439 963,915
Ciba Specialty Chemicals AG (Materials)+............................. 13,400 1,267,721
Holderbank Financiere Glarus (Materials)............................. 1,040 911,946
Nestle SA (Consumer Staples)......................................... 840 1,043,773
</TABLE>
---------------------
83
<PAGE> 85
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
SWITZERLAND (continued)
Novartis AG (Healthcare)............................................. 1,302 $ 1,762,214
Schindler Holding AG registered (Industrial & Commercial)............ 400 513,979
Schindler Holding AG (Industrial & Commercial)....................... 560 721,547
SMH AG (Consumer Discretionary)...................................... 3,840 542,220
Zurich Verischerungsgesellschaft (Finance)........................... 1,780 653,488
------------
8,380,803
------------
THAILAND -- 0.1%
Thai Farmers Bank alien shares (Finance)............................. 40,000 198,778
------------
UNITED KINGDOM -- 9.0%
Anglian Water PLC (Industrial & Commercial).......................... 94,900 1,061,085
BAA PLC (Industrial & Commercial).................................... 119,000 1,031,736
Bass PLC (Consumer Staples).......................................... 60,800 792,200
Beazer Group PLC (Consumer Discretionary)............................ 285,000 801,898
BG PLC (Utilities)................................................... 137,000 457,190
Boots Co. PLC (Consumer Discretionary)............................... 54,800 634,687
BPB Industries PLC (Materials)....................................... 74,700 422,196
British Aerospace PLC (Industrial & Commercial)...................... 36,100 734,047
British Petroleum Co. PLC (Energy)................................... 72,200 862,195
British Telecommunications PLC (Information Technology).............. 142,300 1,031,227
BTR PLC (Industrial & Commercial).................................... 152,000 494,814
Cable & Wireless PLC (Information Technology)........................ 80,000 653,034
Carlton Communications PLC (Information & Entertainment)............. 98,000 844,855
Compass Group PLC (Information & Entertainment)...................... 104,400 1,164,744
Energy Group PLC (Energy)............................................ 43,140 386,023
General Accident PLC (Finance)....................................... 30,100 443,646
Granada Group PLC (Information & Entertainment)...................... 65,300 927,211
Guinness PLC (Consumer Staples)...................................... 86,000 800,491
Holliday Chemical Holdings PLC (Materials)........................... 167,860 389,925
IMI PLC (Industrial & Commercial).................................... 94,000 547,424
Kingfisher PLC (Consumer Discretionary).............................. 54,700 638,450
Ladbroke Group PLC (Information & Entertainment)..................... 197,800 744,217
PowerGen PLC (Utilities)............................................. 81,000 923,556
Refuge Group PLC (Finance)+.......................................... 52,400 416,594
Royal & Sun Alliance Insurance Group PLC (Finance)................... 66,800 503,759
Rugby Group PLC (Industrial & Commercial)............................ 393,060 758,729
Scottish & Newcastle PLC (Consumer Staples).......................... 74,000 848,585
Scottish Power PLC (Utilities)....................................... 160,000 1,002,454
Shell Transport & Trading Co. (Energy)............................... 47,000 926,468
Siebe PLC (Industrial & Commercial).................................. 50,000 786,848
Smithkline Beecham PLC ADR (Healthcare).............................. 15,400 1,347,500
TI Group PLC (Industrial & Commercial)............................... 89,000 831,327
Tomkins PLC (Industrial & Commercial)................................ 304,100 1,320,768
United News & Media PLC (Information & Entertainment)................ 69,900 885,042
Vodafone Group PLC (Information Technology).......................... 142,900 635,838
Whitbread PLC (Consumer Staples)..................................... 70,000 910,355
------------
27,961,118
------------
UNITED STATES -- 40.4%
Abbott Laboratories, Inc. (Healthcare)............................... 35,100 2,211,300
AlliedSignal, Inc. (Industrial & Commercial)......................... 24,900 1,911,075
Altera Corp. (Information Technology)+............................... 29,600 1,568,800
American Express Co. (Finance)....................................... 27,800 1,932,100
American International Group, Inc. (Finance)......................... 18,400 2,490,900
Amgen, Inc. (Healthcare)+............................................ 12,300 822,563
Apache Corp. (Energy)................................................ 33,400 1,143,950
Applebees International, Inc. (Information & Entertainment).......... 22,100 549,738
Applied Materials, Inc. (Industrial & Commercial)+................... 14,100 920,025
</TABLE>
- ---------------------
84
<PAGE> 86
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (continued)
Atmel Corp. (Information Technology)+................................ 23,500 $ 675,625
Becton Dickinson & Co. (Healthcare).................................. 20,200 994,850
Boston Scientific Corp. (Healthcare)+................................ 24,000 1,281,000
Bristol-Myers Squibb Co. (Healthcare)................................ 31,500 2,311,312
Campbell Soup Co. (Consumer Staples)................................. 36,100 1,660,600
Carnival Corp. Class A (Information & Entertainment)................. 28,800 1,094,400
Case Corp. (Industrial & Commercial)................................. 23,300 1,374,700
Centocor, Inc. (Industrial & Commercial)+............................ 12,100 426,525
Chase Manhattan Corp. (Finance)...................................... 18,600 1,757,700
Cisco Systems, Inc. (Information Technology)+........................ 31,000 2,100,250
Coca-Cola Co. (Consumer Staples)..................................... 52,500 3,583,125
Colgate-Palmolive Co. (Consumer Staples)............................. 38,400 2,380,800
Columbia/HCA Healthcare Corp. (Healthcare)........................... 20,400 747,150
COMPAQ Computer, Corp. (Information Technology)+..................... 23,100 2,500,575
Cox Communications, Inc., Class A (Information & Entertainment)+..... 26,800 586,250
Crown, Cork & Seal Co., Inc. (Materials)............................. 12,500 728,125
Dayton Hudson Corp. (Consumer Discretionary)......................... 34,200 1,645,875
Dean Witter, Discover & Co. (Finance)................................ 28,500 1,175,625
Dell Computer Corp. (Information Technology)+........................ 17,600 1,980,000
Disney (Walt) Co. (Information & Entertainment)...................... 29,600 2,423,500
Eastman Kodak Co. (Materials)........................................ 12,800 1,060,800
Emerson Electric Co. (Industrial & Commercial)....................... 15,700 847,800
Exxon Corp. (Energy)................................................. 62,900 3,726,825
Federal National Mortgage Association (Finance)...................... 20,700 903,037
Federated Department Stores, Inc. (Consumer Discretionary)+.......... 19,400 717,800
First Data Corp. (Finance)........................................... 20,900 836,000
First Union Corp. (Finance).......................................... 11,200 961,800
FPL Group, Inc. (Utilities)+......................................... 25,600 1,190,400
General Electric Co. (Industrial & Commercial)....................... 64,000 3,864,000
General Reinsurance Group (Finance)+................................. 3,100 543,275
Gillette Co. (Consumer Staples)...................................... 31,200 2,772,900
Halliburton Co. (Energy)............................................. 6,700 518,413
Hartford Financial Services Group, Inc. (Finance).................... 10,900 850,200
Heinz (H.J.) Co. (Consumer Staples).................................. 23,700 1,019,100
Household International, Inc. (Finance).............................. 13,800 1,355,850
Intel Corp. (Information Technology)................................. 25,000 3,787,500
International Business Machines Corp. (Information Technology)....... 15,400 1,332,100
Johnson & Johnson Co. (Healthcare)................................... 25,600 1,532,800
Kohl's Corp. (Consumer Discretionary)+............................... 31,200 1,680,900
La Quinta Inns, Inc. (Information & Entertainment)................... 29,100 669,300
Lucent Technologies, Inc. (Information Technology)................... 10,176 647,448
MBNA Corp. (Finance)................................................. 45,750 1,549,781
McDonald's Corp. (Information & Entertainment)....................... 16,200 814,050
Medtronic, Inc. (Healthcare)......................................... 21,100 1,561,400
Merck & Co., Inc. (Healthcare)....................................... 38,600 3,469,175
Merrill Lynch & Co., Inc. (Finance).................................. 17,660 1,871,960
Microsoft Corp. (Information Technology)+............................ 23,200 2,876,800
Monsanto Co. (Materials)............................................. 11,400 501,600
Morgan Stanley Group, Inc. (Finance)................................. 12,000 810,000
Netscape Communications Corp. (Information Technology)+.............. 9,400 277,888
New York Times Co. Class A (Information & Entertainment)............. 25,900 1,193,019
Newell Co. (Consumer Staples)........................................ 19,000 726,750
Oracle Systems Corp. (Information Technology)+....................... 38,700 1,804,387
Oxford Health Plans, Inc. (Healthcare)+.............................. 10,400 733,200
PepsiCo, Inc. (Consumer Staples)..................................... 31,000 1,139,250
Pfizer, Inc. (Healthcare)............................................ 26,600 2,736,475
Philip Morris Cos., Inc. (Consumer Staples).......................... 65,200 2,868,800
Procter & Gamble Co. (Consumer Staples).............................. 20,200 2,785,075
Schering-Plough Corp. (Healthcare)................................... 24,900 2,259,675
</TABLE>
---------------------
85
<PAGE> 87
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (continued)
Sears, Roebuck & Co. (Consumer Discretionary)........................ 24,300 $ 1,193,737
Solectron Corp. (Information Technology)+............................ 21,500 1,343,750
Sunbeam Corp. (Consumer Staples)..................................... 48,100 1,623,375
Tele-Communications Liberty Media Group (Information &
Entertainment)+.................................................... 48,050 1,048,091
Texaco, Inc. (Energy)................................................ 18,300 1,996,987
Transocean Offshore, Inc. (Energy)................................... 4,700 324,300
Travelers Group, Inc. (Finance)...................................... 35,066 1,924,247
Tyco International Ltd. (Industrial & Commercial).................... 29,200 1,854,200
Union Pacific Corp. (Industrial & Commercial)........................ 20,700 1,402,425
United States Industries, Inc. (Consumer Staples)+................... 26,800 954,750
United Technologies Corp. (Industrial & Commercial).................. 24,400 1,961,150
USA Waste Services, Inc. (Industrial & Commercial)+.................. 31,200 1,131,000
USX Marathon Group (Energy).......................................... 28,700 853,825
Wal-Mart Stores, Inc. (Consumer Discretionary)....................... 44,900 1,335,775
Wrigley, (Wm) Jr. Co. (Consumer Staples)............................. 21,800 1,291,650
------------
126,015,233
------------
VENEZUELA -- 0.3%
Compania Anon Nacional Tele de Venezuela ADR (Information
Technology)........................................................ 24,000 891,000
------------
TOTAL COMMON STOCK (cost $237,260,593)............................... 284,020,857
------------
PREFERRED STOCK -- 0.7%
----------------------------------------------------------------------------------------------------
BRAZIL -- 0.0%
Dixie Toga SA (Industrial & Commercial).............................. 99,123 64,816
Klabin Fabricadora (Materials)....................................... 2,000 1,906
------------
66,722
------------
FINLAND -- 0.2%
Nokia Corp. ADR (Information Technology)............................. 10,900 711,666
------------
GERMANY -- 0.5%
Henkel KGAA (Consumer Staples)....................................... 11,160 629,468
Hornbach Holding AG (Consumer Discretionary)......................... 5,790 399,754
KSB Kl Schanz Beck (Finance)......................................... 2,110 485,185
------------
1,514,407
------------
TOTAL PREFERRED STOCK (cost $1,753,090).............................. 2,292,795
------------
PRINCIPAL
BONDS & NOTES -- 0.3% AMOUNT
----------------------------------------------------------------------------------------------------
JAPAN -- 0.3%
Sumitomo Bank Ltd. 0.75% 2001 (Finance).............................. $74,000,000 725,623
------------
MALAYSIA -- 0.0%
AMMB Holdings Bhd 5.00% 2002 (Finance)(1)............................ 49,000 19,501
AMMB Holdings Bhd 7.50% 2002 (Finance)(1)............................ 49,000 19,501
------------
39,002
------------
TOTAL BONDS & NOTES (cost $708,912).................................. 764,624
------------
</TABLE>
- ---------------------
86
<PAGE> 88
<TABLE>
<CAPTION>
WARRANTS -- 0.0%+ SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
FRANCE -- 0.0%
Compagnie Generale des Eaux (Multi-industry) 5/2/01.................. 6,520 $ 4,460
------------
HONG KONG -- 0.0%
Hong Kong & China Gas Co., Ltd. (Utilities) 9/30/97.................. 8,640 6,077
Hysan Development Co., Ltd. (Real Estate) 4/30/98.................... 2,250 1,256
------------
7,333
------------
MALAYSIA -- 0.0%
AMMB Holdings Bhd 5/2/13 (Finance)(1)................................ 4,900 0
Development & Commercial Bank Holdings Bhd (Finance)+ 12/27/99....... 32,000 44,319
TA Enterprise Bhd (Finance) 11/22/98................................. 50,000 32,236
------------
76,555
------------
THAILAND -- 0.0%
Thai Farmers Bank alien shares (Finance) 9/15/02..................... 2,375 1,645
------------
TOTAL WARRANTS (cost $7,413)......................................... 89,993
------------
TOTAL INVESTMENT SECURITIES (cost $239,730,008)...................... 287,168,269
------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 8.5% AMOUNT
<S> <C> <C>
<CAPTION>
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 8.5%
Cayman Island Time Deposit with State Street Bank & Trust Co.
5.25% due 6/02/97 (cost $26,626,000)............................... $26,626,000 26,626,000
------------
TOTAL INVESTMENTS --
(cost $266,356,008) 100.7% 313,794,269
Liabilities in excess of other assets -- (0.7) (2,148,489)
------ -------------
NET ASSETS -- 100.0% $311,645,780
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
(1) Fair valued security; see Note 2
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
See Notes to Financial Statements
---------------------
87
<PAGE> 89
- ---------------------
SUNAMERICA SERIES TRUST
INTERNATIONAL DIVERSIFIED
EQUITIES PORTFOLIO INVESTMENT PORTFOLIO -- MAY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 94.7% SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
AUSTRALIA -- 2.3%
Amcor Holdings Ltd. (Materials)...................................... 21,900 $ 145,122
Australian Gas Light Co., Ltd. (Utilities)........................... 11,700 69,778
Australian National Industries Ltd. (Materials)...................... 32,200 38,015
Boral Ltd. (Industrial & Commercial)................................. 41,841 133,532
Brambles Industries Ltd. (Industrial & Commercial)................... 8,000 144,108
Broken Hill Proprietary Co. Ltd. (Materials)......................... 62,806 902,122
Burns Philp & Co., Ltd. (Consumer Staples)........................... 18,679 27,459
Coca-Cola Amatil Ltd. (Consumer Staples)............................. 16,945 196,179
Coles Myer Ltd. (Consumer Discretionary)............................. 36,047 168,196
CRA Ltd. (Materials)................................................. 10,800 177,115
Crown Ltd. (Information & Entertainment)+............................ 21,234 33,964
CSR Ltd. (Industrial & Commercial)................................... 37,000 135,837
Fosters Brewing Group Ltd. (Consumer Staples)........................ 63,000 123,802
General Property Trust (Real Estate)................................. 40,700 76,880
Gio Australia Holdings Ltd. (Finance)................................ 20,793 61,133
Goodman Fielder Wattie Ltd. (Consumer Staples)....................... 41,574 53,832
ICI Australia Ltd. (Materials)....................................... 11,200 103,648
Leighton Holdings Ltd. (Industrial & Commercial)..................... 8,100 37,634
Lend Lease Corp., Ltd. (Finance)..................................... 9,002 178,408
M.I.M. Holdings Ltd. (Materials)..................................... 55,757 83,238
National Australia Bank Ltd. (Finance)............................... 45,577 651,943
Newcrest Mining Ltd. (Materials)..................................... 9,731 24,237
News Corp., Ltd. (Information & Entertainment)....................... 62,794 278,840
Normandy Mining Ltd. (Materials)..................................... 52,980 64,969
North Ltd. (Materials)............................................... 26,208 100,209
Pacific Dunlop Ltd. (Industrial & Commercial)........................ 29,900 83,581
Pioneer International Ltd. (Industrial & Commercial)................. 31,700 107,928
Plutonic Resources Ltd. (Materials).................................. 7,500 27,477
Renison Goldfields Consolidated Ltd. (Materials)..................... 6,586 26,085
Santos Ltd. new shares (Energy)+..................................... 2,513 10,374
Santos Ltd. (Energy)................................................. 20,100 82,366
Smith (Howard) Ltd. (Industrial & Commercial)........................ 6,800 61,117
Sons of Gwalia Ltd. (Materials)...................................... 4,100 17,148
Southcorp Holdings Ltd. (Industrial & Commercial).................... 21,275 79,402
TABCORP Holdings Ltd. (Information & Entertainment).................. 10,900 53,882
Western Mining Corp. Holdings Ltd. (Materials)+...................... 33,029 213,585
Westfield Trust (Real Estate)........................................ 41,133 78,011
Westfield Trust new shares (Real Estate)............................. 1,421 2,695
Westpac Banking Corp. Ltd. (Finance)................................. 56,900 309,008
------------
5,162,859
------------
FRANCE -- 9.1%
Accor SA (Information Technology).................................... 2,398 332,213
Alcatel Alsthom Compagnie General D'Electricite (Information
Technology)........................................................ 8,093 875,926
AXA SA (Finance)+.................................................... 16,810 1,005,759
Banque Nationale de Paris (Finance).................................. 11,820 484,909
BIC (Industrial & Commercial)........................................ 1,950 287,033
Bouygues SA (Consumer Discretionary)................................. 1,831 158,476
Canal Plus (Information & Entertainment)............................. 1,340 226,946
Carrefour SA (Consumer Discretionary)................................ 2,100 1,378,277
</TABLE>
- ---------------------
88
<PAGE> 90
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FRANCE (continued)
Compagnie Bancaire SA (Finance)...................................... 1,545 $ 170,965
Compagnie de St. Gobain (Materials).................................. 4,803 662,902
Compagnie de Suez SA (Finance)....................................... 7,802 397,761
Compagnie Financiere de Paribas (Finance)............................ 4,739 305,040
Compagnie Generale des Eaux (Multi-industry)......................... 6,004 738,205
Elf Aquitaine SA (Energy)............................................ 14,900 1,488,813
Eridania Beghin-Say SA (Consumer Staples)............................ 1,600 223,877
Essilor International (Healthcare)................................... 595 150,847
Etablissements Economiques du Casino Guichard-Perrachon (Consumer
Discretionary)..................................................... 4,775 215,076
Groupe Danone (Consumer Staples)..................................... 4,152 624,820
Groupe Saint Louis (Materials)....................................... 595 137,143
Havas SA (Industrial & Commercial)................................... 3,577 240,961
L'Air Liquide SA (Materials)......................................... 3,930 602,301
L' Oreal (Consumer Staples).......................................... 3,703 1,343,432
Lafarge SA (Materials)............................................... 5,379 343,721
Legrand SA (Information Technology).................................. 1,640 263,838
Lyonnaise des Eaux SA (Multi-industry)............................... 3,370 330,896
Michelin SA Class B (Consumer Discretionary)......................... 8,146 444,781
Moet Hennessy Louis Vuitton (Consumer Staples)....................... 4,750 1,149,950
Pernod-Ricard (Consumer Staples)..................................... 3,675 175,330
Peugeot SA (Consumer Discretionary).................................. 3,125 309,004
Pinault Printemps Redoute (Consumer Discretionary)................... 1,160 486,129
Promodes (Consumer Discretionary).................................... 1,135 384,256
Rhone-Poulenc Rorer, SA Class A (Healthcare)......................... 18,726 606,408
Sagem SA (Industrial & Commercial)................................... 190 95,418
Sanofi SA (Healthcare)............................................... 5,717 496,003
Schneider SA (Industrial & Commercial)+.............................. 8,172 392,425
Simco (Real Estate)+................................................. 46 3,721
Simco registered (Real Estate)....................................... 1,875 162,349
Societe Eurafrance SA (Finance)...................................... 215 88,352
Societe Generale (Finance)........................................... 5,065 562,232
Sodexho SA (Information & Entertainment)............................. 360 167,077
Thomson CSF (Industrial & Commercial)................................ 6,375 181,603
Total SA, Series B (Energy).......................................... 12,992 1,187,922
Usinor Sacilor (Materials)........................................... 14,260 213,853
------------
20,096,950
------------
GERMANY -- 9.1%
Adidas AG (Consumer Discretionary)................................... 2,000 210,052
Agiv AG (Multi-industry)+............................................ 1,900 34,907
Allianz Holdings AG (Finance)........................................ 9,500 2,009,391
AMB Aachener und Muenchner (Finance)................................. 150 138,845
BASF AG (Materials).................................................. 23,450 864,402
Bayer AG (Multi-industry)............................................ 29,900 1,159,017
Bayerische Hypotheken und Bank AG (Finance).......................... 10,000 317,419
Bayerische Vereinsbank AG (Finance).................................. 10,500 431,894
Beiersdorf AG (Consumer Staples)..................................... 3,450 183,693
Bilfinger & Berger Bau AG (Consumer Discretionary)................... 2,050 79,764
Brau Und Brunnen AG (Consumer Staples)+.............................. 300 22,293
CKAG Colonia Konzern AG (Finance).................................... 1,150 111,023
Continental AG (Consumer Discretionary).............................. 3,950 89,742
Daimler-Benz AG (Consumer Discretionary)+............................ 20,300 1,561,904
Degussa AG (Materials)............................................... 3,500 170,075
Deutsche Bank AG (Finance)+.......................................... 20,250 1,122,038
Deutsche Telekom AG (Information Technology)......................... 85,279 1,891,097
Deutz AG (Industrial & Commercial)................................... 2,550 25,066
Dresdner Bank AG (Finance)........................................... 17,700 619,308
Heidelberger Zement AG (Materials)................................... 1,900 177,871
</TABLE>
---------------------
89
<PAGE> 91
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
GERMANY (continued)
Hochtief AG (Industrial & Commercial)................................ 3,650 $ 153,765
Karstadt AG (Consumer Discretionary)................................. 400 141,127
Linde AG (Industrial & Commercial)................................... 400 274,999
Lufthansa AG (Information & Entertainment)........................... 15,350 244,382
Manitoba AG (Industrial & Commercial)................................ 550 157,364
Mannesmann AG (Industrial & Commercial).............................. 1,450 588,789
Merck KGAA (Healthcare).............................................. 6,446 264,953
Metro AG (Consumer Discretionary).................................... 4,060 444,103
Munchener Ruckversicherungs (Finance)................................ 304 773,741
Preussag AG (Materials).............................................. 750 197,472
RWE AG (Utilities)................................................... 13,450 572,910
SAP AG (Information Technology)...................................... 2,441 435,327
Schering AG (Healthcare)............................................. 2,900 291,171
Siemens AG (Industrial & Commercial)................................. 22,700 1,279,440
STRABAG AG (Industrial & Commercial)+................................ 150 12,726
Thyssen AG (Materials)............................................... 1,550 351,881
VEBA AG (Utilities).................................................. 19,900 1,124,767
Viag AG (Materials).................................................. 1,150 523,492
Viag AG New (Materials)+............................................. 171 77,041
Volkswagen AG (Consumer Discretionary)............................... 1,200 775,145
------------
19,904,396
------------
HONG KONG -- 3.2%
Applied International Holdings Ltd. (Information & Entertainment)+... 12,000 960
Bank of East Asia Ltd. (Finance)..................................... 44,099 160,494
Cathay Pacific Airways Ltd. (Industrial & Commercial)................ 102,000 153,359
Cheung Kong Holdings Ltd. (Real Estate).............................. 71,000 726,173
China Light & Power Co., Ltd. (Utilities)............................ 77,500 388,075
Chinese Estates Ltd. (Real Estate)................................... 56,722 57,465
Giordano International Ltd. (Consumer Discretionary)................. 22,000 13,203
Hang Lung Development Co. (Real Estate).............................. 43,000 82,409
Hang Seng Bank Ltd. (Finance)........................................ 61,000 732,142
Hong Kong & China Gas Co., Ltd. (Utilities).......................... 115,422 201,097
Hong Kong Aircraft Engineering Co., Ltd. (Industrial & Commercial)... 6,400 19,534
Hong Kong Telecommunications Ltd. (Information Technology)........... 366,676 811,576
Hongkong & Shanghai Hotels Ltd. (Information & Entertainment)........ 44,166 68,399
Hopewell Holdings Ltd. (Real Estate)................................. 136,000 75,911
Hutchison Whampoa Ltd. (Finance)..................................... 119,000 990,579
Hysan Development Co., Ltd. (Real Estate)............................ 34,000 113,428
Johnson Electric Holdings Ltd. (Industrial & Commercial)............. 13,500 39,811
Miramar Hotel & Investment Co., Ltd. (Information & Entertainment)... 11,000 20,940
New World Development Co., Ltd. (Real Estate)........................ 59,061 375,015
Oriental Press Group (Information & Entertainment)................... 48,000 16,416
Peregrine Investments Holdings Ltd. (Finance)........................ 13,700 24,400
Shangri-La Asia Ltd. (Information & Entertainment)................... 54,900 69,435
Shun Tak Holdings Ltd. (Industrial & Commercial)..................... 42,000 27,644
South China Morning Post Ltd. (Information & Entertainment).......... 58,000 55,766
Stelux Holdings International Ltd. (Consumer Discretionary).......... 18,800 3,542
Sun Hung Kai Properties Ltd. (Real Estate)........................... 75,000 921,953
Swire Pacific Ltd. Class A (Multi-industry).......................... 50,500 423,630
Television Broadcasting Ltd. (Information & Entertainment)........... 15,000 65,432
Wharf Holdings Ltd. (Real Estate).................................... 73,000 326,915
Wing Lung Bank Ltd. (Finance)........................................ 8,321 47,788
Winsor Industrial Corp., Ltd. (Consumer Discretionary)............... 12,000 2,617
------------
7,016,108
------------
INDONESIA -- 0.0%
Unilever Indonesia alien shares (Information Technology)............. 2,000 36,999
------------
</TABLE>
- ---------------------
90
<PAGE> 92
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ITALY -- 3.6%
Acciaierie & Ferriere Lombarde (Materials)........................... 7,000 $ 26,956
Assicurazione Generali SpA (Finance)................................. 41,760 714,710
Banca Commerciale Italiana SpA (Finance)............................. 66,200 130,294
Banco Ambrosiano Veneto SpA (Finance)................................ 25,900 63,816
Benetton Group SpA (Consumer Discretionary).......................... 8,825 123,434
Burgo (Cartiere) SpA (Materials)..................................... 7,700 44,897
Cogefar-Impresit SpA (Industrial & Commercial)+...................... 15,000 10,924
Credito Italiano SpA (Finance)....................................... 113,500 168,798
Edison SpA (Utilities)............................................... 30,000 142,170
ENI SpA (Energy)..................................................... 360,000 1,795,273
Fiat SpA (Consumer Discretionary).................................... 152,200 498,965
Fiat SpA nonconvertible (Consumer Discretionary)..................... 33,700 59,069
Gilardini SpA (Industrial & Commercial).............................. 22,500 35,852
Istituto Bancario San Paolotorno (Finance)........................... 39,800 250,269
Istituto Mobiliare Italiano (Finance)................................ 28,950 253,202
Istituto Nazionale Delle Asazioni SpA (Finance)...................... 191,700 264,734
Italcementi Fabbriche SpA (Materials)................................ 10,550 61,359
Italcementi Fabbriche SpA nonconvertible (Materials)................. 7,650 18,849
Italgas-Societa Itailiana per il Gas SpA (Utilities)................. 30,900 95,101
La Rinascente Per L'Eserciz Grandi Magazzini SpA (Consumer
Discretionary)..................................................... 10,000 48,393
Mediaset SpA (Information & Entertainment)........................... 54,500 234,474
Mediobanca SpA (Finance)............................................. 22,700 129,077
Montedison SpA (Multi-industry)...................................... 129,650 79,193
Montedison SpA nonconvertible (Multi-industry)....................... 42,100 26,833
Olivetti Group SpA (Information Technology)+......................... 163,000 47,425
Parmalat Finanziar (Finance)......................................... 72,920 103,929
Pirelli SpA (Consumer Discretionary)................................. 74,000 161,150
Riunione Adriatica de Sicur (Finance)................................ 13,475 102,586
Saffa SpA (Materials)+............................................... 1,300 2,355
Sasib SpA (Industrial & Commercial).................................. 7,400 24,980
Sirti SpA (Consumer Discretionary)................................... 14,100 81,174
SNIA BPD SpA (Multi-industry)........................................ 33,000 27,071
Societa Assicuratrice Industriale SpA (Finance)...................... 6,450 45,298
Telecome Italia Mobile SpA-RNC (Information Technology).............. 70,000 122,282
Telecome Italia Mobile SpA (Information Technology).................. 297,900 873,772
Telecome Italia SpA (Information Technology)......................... 292,500 805,283
Telecome Italia SpA nonconvertible (Information Technology).......... 71,000 155,874
------------
7,829,821
------------
JAPAN -- 29.6%
Advantest Corp. (Industrial & Commercial)............................ 3,760 255,725
Ajinomoto Co., Inc. (Consumer Staples)............................... 55,000 552,598
Aoki Corp. (Industrial & Commercial)+................................ 29,000 34,865
Aoyama Trading Co., Ltd. (Consumer Discretionary).................... 3,900 121,237
Asahi Bank Ltd. (Finance)............................................ 54,000 352,890
Asahi Breweries Ltd. (Consumer Staples).............................. 29,000 395,964
Asahi Chemical Industry Co., Inc. (Materials)........................ 89,000 495,251
Asahi Glass Co., Ltd. (Materials).................................... 84,000 815,114
Bank of Tokyo-Mitsubishi Ltd. (Finance)+............................. 98,000 1,699,957
Bridgestone Corp. (Consumer Discretionary)........................... 29,000 654,959
Canon, Inc. (Information Technology)................................. 36,000 911,979
Casio Computer Co. (Information Technology).......................... 18,000 141,589
Chiba Bank Ltd. (Finance)............................................ 26,000 135,079
Chiyoda Corp. (Consumer Staples)..................................... 6,000 28,235
Chugai Pharmaceutical Co., Ltd. (Healthcare)......................... 29,000 246,046
Dai Nippon Printing Co., Ltd. (Industrial & Commercial).............. 40,000 800,343
Daiei, Inc. (Consumer Discretionary)................................. 36,000 234,951
Daikin Industries Ltd. (Consumer Staples)............................ 29,000 281,408
</TABLE>
---------------------
91
<PAGE> 93
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (continued)
Daiwa House Industry Co., Ltd. (Consumer Discretionary).............. 29,000 $ 341,176
Daiwa Securities Co., Ltd. (Finance)................................. 59,000 434,204
East Japan Railway Co. (Industrial & Commercial)..................... 173 854,229
Ebara Corp. (Industrial & Commercial)................................ 20,000 290,253
Fanuc Ltd. (Information Technology).................................. 12,500 445,470
Fuji Bank Ltd. (Finance)............................................. 61,000 785,745
Fuji Photo Film Co., Ltd. (Materials)................................ 20,000 774,581
Fujitsu Ltd. (Information Technology)................................ 77,000 938,944
Furukawa Electric Co., Ltd. (Industrial & Commercial)................ 36,000 213,310
Hankyu Corp. (Industrial & Commercial)............................... 39,000 202,619
Hazama Corp. (Consumer Staples)...................................... 29,000 54,787
Hitachi Ltd. (Information Technology)+............................... 146,000 1,554,659
Honda Motor Co., Ltd. (Consumer Discretionary)....................... 39,000 1,145,384
Industrial Bank of Japan Ltd. (Finance).............................. 53,000 637,183
Ito-Yokado Co., Ltd. (Consumer Discretionary)........................ 19,000 1,083,383
Japan Airlines Co., Ltd. (Information & Entertainment)+.............. 105,000 445,427
Japan Energy Corp. (Energy).......................................... 74,000 185,556
Joyo Bank Ltd. (Finance)............................................. 18,000 88,106
Jusco Co., Ltd. (Consumer Discretionary)............................. 14,000 472,477
Kajima Corp. (Industrial & Commercial)............................... 59,000 329,833
Kansai Electric Power Co., Inc. (Utilities).......................... 39,200 737,209
KAO Corp. (Consumer Staples)......................................... 54,000 732,675
Kawasaki Steel Corp. (Materials)..................................... 101,000 296,625
Kinki Nippon Railway Co., Ltd. (Industrial & Commercial)............. 70,900 425,583
Kirin Brewery Co., Ltd. (Consumer Staples)........................... 59,000 582,653
Komatsu Ltd. (Industrial & Commercial)............................... 59,000 445,857
Kubota Ltd. (Industrial & Commercial)................................ 89,000 408,888
Kumagai Gumi Co., Ltd. (Industrial & Commercial)..................... 59,000 96,264
Kyocera Corp. (Information Technology)............................... 8,800 634,023
Kyowa Hakko Kogyo Co., Ltd. (Materials).............................. 29,000 206,200
Marubeni Corp. (Consumer Discretionary).............................. 89,000 378,317
Marui Co., Ltd. (Consumer Discretionary)............................. 13,000 242,250
Matsushita Electric Industrial Co., Ltd. (Information Technology)+... 89,000 1,673,766
Mitsubishi Chemical Corp. (Materials)................................ 89,000 270,554
Mitsubishi Corp. (Consumer Discretionary)............................ 82,000 964,706
Mitsubishi Electric Corp. (Information Technology)................... 104,000 589,438
Mitsubishi Estate Co., Ltd. (Real Estate)............................ 63,000 860,197
Mitsubishi Heavy Industries Ltd. (Industrial & Commercial)........... 160,000 1,151,395
Mitsubishi Materials Corp. (Materials)............................... 59,000 228,501
Mitsubishi Trust & Banking Corp. (Finance)........................... 30,000 430,228
Mitsui & Co. (Materials)............................................. 89,000 787,205
Mitsui Engineering & Shipbuilding Co., Ltd. (Industrial &
Commercial)+....................................................... 59,000 108,931
Mitsui Fudosan Co., Ltd. (Real Estate)............................... 47,000 593,302
Mitsui Trust & Banking Co., Ltd. (Finance)........................... 2,000 15,045
Mitsukoshi Ltd. (Consumer Discretionary)............................. 32,000 225,058
Murata Manufacturing Co., Ltd. (Information Technology).............. 10,000 395,878
Mycal Corp. (Consumer Discretionary)................................. 19,000 274,109
NEC Corp. (Information Technology)................................... 60,000 834,693
New Oji Paper Co., Ltd. (Materials)+................................. 59,000 340,979
NGK Insulators Ltd. (Industrial & Commercial)........................ 29,000 283,899
Nippon Denko Co., Ltd. (Industrial & Commercial)..................... 36,000 899,614
Nippon Express Co., Ltd. (Industrial & Commercial)................... 38,000 295,320
Nippon Fire & Marine Insurance Co., Ltd. (Finance)................... 29,000 137,716
Nippon Light Metal Co., Ltd. (Materials)............................. 28,000 109,403
Nippon Meat Packers, Inc. (Consumer Staples)......................... 29,000 353,628
Nippon Oil Co., Ltd. (Energy)........................................ 86,000 435,723
Nippon Steel Corp. (Materials)....................................... 326,000 954,624
Nippon Telegraph & Telephone Corp. (Utilities)+...................... 298 2,840,532
Nippon Yusen Kabushiki Kaish (Industrial & Commercial)............... 89,000 366,853
</TABLE>
- ---------------------
92
<PAGE> 94
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (continued)
Nissan Motor Co., Ltd. (Consumer Discretionary)...................... 112,000 $ 742,499
NKK Corp. (Materials)................................................ 172,000 338,240
Nomura Securities Co., Ltd. (Finance)................................ 76,000 900,644
Odakyu Electric Railway Co., Ltd. (Industrial & Commercial).......... 33,600 186,106
Osaka Gas Co., Ltd. (Utilities)...................................... 130,000 341,606
Penta Ocean Construction Co., Ltd. (Consumer Staples)................ 29,000 94,882
Pioneer Electronic Corp. (Information & Entertainment)............... 9,000 222,585
Rohm Co. (Information Technology).................................... 3,000 311,722
Sakura Bank Ltd. (Finance)........................................... 81,000 484,818
Sankyo Co., Ltd. (Healthcare)........................................ 22,000 697,123
Sanyo Electric Co., Ltd. (Information Technology).................... 89,000 375,260
Secom Co. (Information Technology)................................... 7,000 503,736
Sega Enterprises Ltd. (Consumer Discretionary)....................... 5,800 194,246
Sekisui House Ltd. (Consumer Discretionary).......................... 29,000 283,899
Sharp Corp. (Information Technology)................................. 58,000 747,102
Shimano, Inc. (Industrial & Commercial).............................. 8,000 153,199
Shimizu Corp. (Consumer Discretionary)............................... 42,000 249,944
Shin-Etsu Chemical Co., Ltd. (Materials)............................. 13,200 330,992
Shiseido Co., Ltd. (Consumer Staples)................................ 13,000 189,781
Shizuoka Bank Ltd. (Finance)......................................... 22,000 211,593
Showa Denko K.K. (Materials)......................................... 59,000 149,463
Sony Corp. (Information Technology).................................. 13,700 1,154,118
Sumitomo Chemical Co., Ltd. (Materials).............................. 117,000 484,277
Sumitomo Corp. (Industrial & Commercial)............................. 59,000 521,855
Sumitomo Electric Industries Ltd. (Industrial & Commercial).......... 39,000 612,881
Sumitomo Forestry Co., Ltd. (Materials).............................. 12,000 130,872
Sumitomo Metal Industries Ltd. (Materials)........................... 158,000 402,971
Sumitomo Metal Mining Co., Ltd. (Materials).......................... 28,000 195,002
Sumitomo Osaka Cement Co., Ltd. (Materials).......................... 30,000 90,425
Sumitomo Trust & Banking Co., Ltd. (Finance)......................... 64,000 884,843
Taisei Corp. (Consumer Discretionary)................................ 59,000 252,821
Taisho Pharmaceutical Co., Ltd. (Healthcare)......................... 18,000 451,353
Takeda Chemical Industries Ltd. (Healthcare)......................... 36,000 911,979
Teijin Ltd. (Consumer Discretionary)................................. 59,000 248,768
Tobu Railway Co., Ltd. (Industrial & Commercial)..................... 40,000 179,304
Tohoku Electric Power Co., Inc. (Utilities).......................... 21,000 358,866
Tokai Bank Ltd. (Finance)............................................ 52,000 427,789
Tokyo Marine & Fire Insurance Co., Ltd. (Finance).................... 89,000 1,047,059
Tokyo Dome Corp. (Information & Entertainment)....................... 6,000 90,167
Tokyo Electric Power Co., Inc. (Utilities)........................... 54,600 1,040,893
Tokyo Electron Ltd. (Information Technology)......................... 4,400 221,795
Tokyo Gas Co. Ltd. (Utilities)....................................... 118,000 300,953
Tokyo Corp. (Industrial & Commercial)................................ 51,000 291,679
Toppan Printing Co., Ltd. (Information & Entertainment).............. 40,000 549,592
Toray Industries, Inc. (Materials)................................... 89,000 605,307
Toto Ltd. (Materials)................................................ 28,800 323,985
Toyobo Co., Ltd. (Consumer Discretionary)............................ 59,000 149,970
Toyota Motor Corp. (Consumer Discretionary).......................... 136,000 3,900,730
Ube Industries Ltd. (Materials)...................................... 59,000 167,196
Yamaichi Securities Co., Ltd. (Finance).............................. 59,000 167,196
Yasuda Trust & Banking Co., Ltd. (Finance)........................... 34,000 102,190
------------
65,019,633
------------
KOREA -- 1.1%
Cho Hung Bank Co. Ltd. (Finance)..................................... 3,880 22,463
Commerce Bank Korea (Finance)+....................................... 3,480 18,229
Daewoo Corp. (Industrial & Commercial)............................... 2,690 20,729
Daewoo Heavy Industries (Industrial & Commercial).................... 8,430 71,676
Daewoo Securities Co., Ltd. (Finance)+............................... 1,170 15,093
</TABLE>
---------------------
93
<PAGE> 95
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
KOREA (continued)
Dong-Ah Construction Industrial Co. (Industrial & Commercial)........ 860 $ 18,481
Hanil Bank (Finance)................................................. 3,960 24,431
Hyundai Engineering & Construction Co. (Industrial & Commercial)+.... 1,193 27,701
Hyundai Motor Co. Ltd. (Consumer Discretionary)...................... 950 31,273
Korea Electric Power Corp. (Utilities)............................... 11,920 382,403
Korea First Bank (Finance)........................................... 3,580 15,581
Korea Fund, Inc. (Finance)........................................... 83,700 1,150,875
Korea Mobile Telecommunications Corp. ADR (Information Technology)+.. 92 57,028
LG Chemical Ltd.(Materials).......................................... 1,840 25,180
Pohang Iron & Steel Co., Ltd. (Materials)............................ 2,230 194,954
Samsung Corp. (Information Technology)............................... 1,400 18,216
Samsung Display Devices Co. (Information Technology)+................ 590 29,847
Samsung Electronics Co. (Information Technology)..................... 1,660 162,183
Tongyang Cement (Materials)+......................................... 230 4,541
Yukong Ltd. (Energy)................................................. 1,756 44,122
------------
2,335,006
------------
NETHERLANDS -- 3.7%
ABN AMRO Holdings NV (Finance)....................................... 37,640 695,043
Akzo Nobel NV (Materials)............................................ 2,175 289,283
Elsevier NV (Consumer Discretionary)................................. 19,600 331,339
Getronics NV (Information Technology)................................ 2,400 81,769
Heineken NV (Consumer Staples)....................................... 1,400 236,744
ING Groep NV (Finance)............................................... 21,591 953,485
KLM Royal Dutch Air Lines NV (Information & Entertainment)........... 2,494 71,998
Koninlijke Ahold NV (Consumer Discretionary)......................... 2,975 61,280
Koninlijke KNP BT (Materials)........................................ 4,725 358,584
Koninlijke PTT Nederland NV (Utilities).............................. 12,588 440,007
Nedlloyd Groep NV (Industrial & Commercial).......................... 750 18,375
Oce-Van Der Grinten NV (Information Technology)+..................... 600 78,179
Philips Electronics NV (Information Technology)...................... 9,450 516,616
Royal Dutch Petroleum Co. (Energy)................................... 14,600 2,818,237
Stork NV (Industrial & Commercial)................................... 1,125 49,740
Unilever NV and PLC (Consumer Staples)............................... 4,300 826,450
Wolters Kluwer NV (Information & Entertainment)+..................... 1,850 222,385
------------
8,049,514
------------
SINGAPORE -- 3.8%
Amcol Holdings Ltd. (Consumer Staples) (1)........................... 17,000 31,140
City Developments Ltd. (Real Estate)................................. 83,000 771,796
Creative Technolog Ltd. (Information Technology)+.................... 9,000 166,748
Cycle & Carriage Ltd. (Consumer Discretionary)....................... 25,000 253,443
DBS Land Ltd. (Real Estate).......................................... 97,000 339,090
Development Bank of Singapore Ltd. alien shares (Finance)............ 50,000 625,743
First Capital Corp., Ltd. alien shares (Real Estate)................. 30,000 82,640
Fraser & Neave Ltd. alien shares (Consumer Staples).................. 31,800 253,457
Hai Sun Hup Group Ltd. alien shares (Finance)........................ 59,000 41,663
Hotel Properties Ltd. alien shares (Real Estate)..................... 49,000 83,933
Inchcape Bhd alien shares (Multi-industry)........................... 21,000 77,816
Jurong Shipyard Ltd. alien shares (Industrial & Commercial).......... 12,000 54,115
Keppel Corp., Ltd. (Industrial & Commercial)......................... 75,000 346,081
Keppel Corp., Ltd. Class A (Industrial & Commercial)................. 6,000 26,848
Metro Holdings Ltd. (Consumer Discretionary)......................... 11,000 35,377
NatSteel Ltd. (Materials)............................................ 35,000 92,009
Neptune Orient Lines Ltd. (Industrial & Commercial).................. 90,000 81,172
Overseas Chinese Banking Corp., Ltd. alien shares (Finance).......... 73,779 918,175
Overseas Union Enterprise Ltd. (Information & Entertainment)......... 15,000 71,838
Parkway Holdings Ltd. alien shares (Real Estate)..................... 34,000 168,776
Robinson & Co., Ltd. alien shares (Consumer Discretionary)........... 6,000 30,204
Shangri-La Hotel Ltd. alien shares (Information & Entertainment)..... 16,400 49,304
</TABLE>
- ---------------------
94
<PAGE> 96
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
SINGAPORE (continued)
Singapore Airlines Ltd. alien shares (Information & Entertainment)... 93,000 $ 793,260
Singapore Press Holdings Ltd. alien shares (Information &
Entertainment)..................................................... 21,800 434,384
Singapore Tech Industrial Corp. (Industrial & Commercial)............ 76,000 211,480
Singapore Telecommunications Ltd. (Information Technology)........... 640,000 1,154,443
Straits Trading Co., Ltd. (Materials)................................ 36,000 84,066
United Industrial Corp., Ltd. (Multi-industry)....................... 148,000 120,031
United Overseas Bank Ltd. alien shares (Finance)..................... 85,000 873,593
United Overseas Land Ltd. (Real Estate).............................. 57,000 89,268
------------
8,361,893
------------
SPAIN -- 3.6%
Acerinox SA (Materials).............................................. 687 116,433
Autopistas Concesionaria Espana SA (Industrial & Commercial)......... 11,320 139,386
Banco Bilbao Vizcaya SA (Finance).................................... 12,450 881,904
Banco Central Hispanoamericano SA (Finance).......................... 9,100 293,660
Banco de Santander SA (Finance)...................................... 8,850 754,846
Corporacion Bancaria de Espana SA (Finance).......................... 6,950 346,154
Corporacion Financiera Alba (Finance)................................ 925 101,740
Corporacion Mapfre SA (Finance)...................................... 68 3,594
Corporacion Mapfre SA registered (Finance)........................... 1,500 80,313
Dragados & Construcciones SA (Consumer Discretionary)................ 3,150 61,013
Ebro Agricolas, Compania de Alimentacion SA (Industrial &
Commercial)........................................................ 2,650 50,778
Empresa Nacional Celulos SA (Materials).............................. 1,175 17,353
Empresa Nacional de Electricidad SA (Utilities)...................... 14,200 1,084,449
Ercros SA (Materials)+............................................... 9,400 7,218
Fomento de Construcciones y Contratas SA (Consumer Discretionary).... 775 86,260
Gas Natural SDG SA (Utilities)....................................... 2,100 400,360
Iberdrola SA (Utilities)............................................. 51,700 634,806
Inmobiliaria Metropolitana Vasco Central SA (Real Estate)............ 1,250 48,596
Mapfre Vida SA (Finance)............................................. 13 878
Portland Valderrivas SA (Materials).................................. 375 25,993
Repsol SA (Energy)................................................... 16,700 698,914
Sociedad General de Aguas de Barcelona SA new shares (Utilities)..... 48 1,896
Sociedad General de Aguas de Barcelona SA (Utilities)................ 2,395 96,754
Tabacalera SA Series A (Consumer Staples)............................ 2,000 101,549
Telefonica de Espana SA (Utilities).................................. 52,200 1,505,769
Union Electrica Fenosa SA (Utilities)................................ 16,200 143,442
Uralita SA (Materials)............................................... 2,900 28,085
Vallehermoso SA (Real Estate)........................................ 2,383 60,168
Viscofan Industria Navarra (Materials)............................... 1,300 26,259
Zardoya Otis SA (Industrial & Commercial)............................ 525 65,734
------------
7,864,304
------------
SWEDEN -- 2.8%
ABB AB Class A (Utilities)........................................... 36,000 485,344
AGA, Series A (Materials)............................................ 3,000 40,252
AGA, Series B (Materials)............................................ 5,250 69,086
Astra AB Class A (Healthcare)........................................ 67,467 1,088,009
Atlas Copco AB Series A (Industrial & Commercial).................... 8,350 224,069
Electrolux AB Series B (Consumer Discretionary)...................... 3,300 196,692
Ericsson LM Telecommunications Co., Class B (Information
Technology)........................................................ 41,400 1,452,782
Esselte AB Series A (Information & Technology)....................... 1,600 36,536
Granges AB (Materials)............................................... 1,650 20,542
Hennes & Mauritz AB Class B (Consumer Discretionary)................. 9,000 293,761
Scancem AB Series A (Materials)...................................... 250 9,998
Securitas AB, Series B (Industrial & Commercial)..................... 4,000 99,598
Skandia Forsakrings AB (Finance)..................................... 5,100 179,953
Skandinaviska Enskilda Banken Series A (Finance)..................... 23,700 244,607
Skanska AB Series B (Industrial & Commercial)........................ 5,500 221,385
SKF AB Series B (Materials).......................................... 5,400 124,703
</TABLE>
---------------------
95
<PAGE> 97
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
SWEDEN (continued)
Stora Kopparbergs Bergslags Aktiebolag Series A (Materials).......... 13,750 $ 203,114
Svenska Cellulosa AB Series B (Materials)............................ 8,500 178,198
Svenska Handelsbanken, Series A (Finance)............................ 9,200 249,252
Swedish Match AB (Consumer Staples).................................. 21,100 68,598
Trelleborg AB Series B (Materials)................................... 6,000 104,113
Volvo AB Series B (Consumer Discretionary)........................... 17,500 484,280
------------
6,074,872
------------
SWITZERLAND -- 4.4%
Adia SA (Industrial & Commercial).................................... 485 182,166
Alusuisse-Lonza Holdings AG (Multi-industry)......................... 150 141,379
BBC Brown Boveri AG (Industrial & Commercial)........................ 240 329,060
CS Holding AG (Finance)+............................................. 4,850 608,647
Fischer (Georg) AG Series B (Consumer Staples)....................... 15 21,392
Gebrueder Sulzer AG (Consumer Staples)+.............................. 100 78,650
Holderbank Financiere Glarus AG (Materials).......................... 185 162,221
Merkur Holding AG (Consumer Discretionary)........................... 165 36,753
Nestle SA (Consumer Staples)......................................... 1,015 1,261,226
Novartis AG (Healthcare)............................................. 1,655 2,243,434
Roche Holdings AG (Healthcare)....................................... 42 551,539
Roche Holdings AG Genusscheine NPV (Healthcare)...................... 179 1,589,819
Schweiz Bankgesellschaft (Finance)+.................................. 600 131,319
Schweiz Bankgesellschaft Series B (Finance)+......................... 540 591,697
Schweiz Ruckversicher (Consumer Discretionary)....................... 365 489,622
SGS Societe Generale de Surveillance Holding SA Series B
(Industrial & Commercial).......................................... 50 110,668
SMH AG (Consumer Discretionary)...................................... 135 79,586
Swiss Bank Corp. NY (Finance)+....................................... 1,960 470,488
Swissair AG Series B (Information & Entertainment)+.................. 90 91,627
Zurich Versicherungsgesellschaft (Finance)........................... 1,225 449,732
------------
9,621,025
------------
THAILAND -- 2.2%
Advance Agro PCL alien shares (Materials)+........................... 6,000 13,075
Advanced Information Services PCL alien shares (Information &
Technology)........................................................ 15,400 106,640
Bangchak Petroleum PCL alien shares (Energy)......................... 18,400 9,931
Bangkok Bank PCL alien shares (Finance).............................. 96,700 866,558
Bangkok Land Co. Ltd. alien shares (Real Estate)+.................... 26,600 22,754
Bangkok Metropolitan Bank PCL alien shares (Finance)................. 51,937 16,924
Bank of Ayudhya PCL alien shares (Finance)........................... 91,050 192,855
Banpu Coal PCL alien shares (Materials).............................. 8,200 114,900
Castle Peak Holdings PCL alien shares (Consumer Discretionary)+...... 2,800 13,572
Charoen Pokphand Feedmill PCL (Consumer Staples)+.................... 3,700 10,550
CMIC Finance & Security PCL alien shares (Finance)................... 6,700 2,702
Dhana Siam Finance & Securities PCL alien shares (Finance)........... 53,700 45,388
Finance One PCL alien shares (Finance)............................... 37,700 10,289
General Finance & Securities PCL alien shares (Finance).............. 7,650 3,350
Industrial Finance Corp of Thailand (The) (Finance).................. 23,000 41,690
Industrial Finance Corp. of Thailand (The) alien shares (Finance).... 30,800 57,711
International Broadcasting Corp. PCL alien shares (Information &
Entertainment)+.................................................... 3,200 1,857
International Engineering PCL (Information Technology)............... 3,500 3,030
Italian-Thai Development PCL alien shares (Industrial &
Commercial)........................................................ 16,500 30,244
Jasmine International PCL alien shares (Information Technology)...... 11,800 11,175
Krung Thai Bank PCL alien shares (Finance)........................... 96,500 115,957
Land & Houses PCL alien shares (Real Estate)......................... 24,600 31,564
MDX PCL alien shares (Real Estate)+.................................. 11,700 3,193
National Finance & Securities PCL alien shares (Finance)............. 43,900 38,446
National Petrochemical PCL alien shares (Materials)+................. 29,000 26,283
</TABLE>
- ---------------------
96
<PAGE> 98
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
THAILAND (continued)
NTS Steel Groups PCL alien shares (Materials)+....................... 15,000 $ 1,589
One Holding PCL alien shares (Multi-industry)........................ 11,200 502
Padaeng Industry PCL alien shares (Materials)+....................... 12,100 4,633
Phatra Thanakit PCL alien shares (Finance)........................... 50,500 83,824
Phoenix Pulp & Paper PCL alien shares (Materials)+................... 8,700 8,062
PTT Exploration & Production PCL (Energy)............................ 62,600 877,165
Quality House PCL alien shares (Consumer Staples).................... 6,600 2,446
Saha-Union PCL (Consumer Discretionary).............................. 1,700 1,212
Sahavirya Steel Industries PCL alien shares (Materials)+............. 33,900 7,595
Shinawatra Computer & Communication PCL alien shares
(Information Technology)........................................... 28,600 133,972
Shinawatra Satellite PCL alien shares (Information Technology)....... 12,300 13,527
Siam Cement PCL alien shares (Materials)............................. 20,100 438,843
Siam City Bank PCL alien shares (Finance)+........................... 11,050 7,539
Siam City Cement PCL alien shares (Materials)........................ 23,400 90,550
Siam Commercial Bank PCL alien shares (Finance)+..................... 45,000 241,955
Siam Makro PCL alien shares (Consumer Discretionary)+................ 3,700 9,420
Tanayong PCL alien shares (Real Estate).............................. 12,800 4,745
TelecomAsia Corp. PCL (Utilities)+................................... 235,600 268,709
Thai Airways International PCL (Information & Entertainment)......... 109,300 160,277
Thai Farmers Bank alien shares (Finance)+............................ 56,200 279,283
Thai Military Bank PCL alien shares (Finance)+....................... 13,400 16,511
Thai Plastic & Chemical PCL (Materials).............................. 4,500 15,580
Thai Telephone & Telecommunications Co., PCL alien shares
(Utilities)+....................................................... 141,600 67,772
Tipco Asphalt PCL alien shares (Materials)........................... 7,900 37,971
TPI Polene PCL (Materials)........................................... 51,400 76,943
United Communication Industries PCL (Information Technology)......... 49,100 226,000
Univest Land PCL alien shares (Real Estate)+......................... 22,500 1,375
Wattachak PCL alien shares (Information & Entertainment)............. 15,200 4,706
------------
4,873,344
------------
UNITED KINGDOM -- 16.2%
Abbey National PLC (Finance)......................................... 46,900 677,453
Argyll Group PLC (Consumer Discretionary)............................ 30,077 177,618
Arjo Wiggins Appleton PLC (Materials)................................ 23,400 63,543
Associated British Foods PLC (Consumer Staples)...................... 16,800 155,551
B.A.T. Industries PLC (Multi-industry)............................... 103,786 929,541
Barclays PLC (Finance)............................................... 57,945 1,127,051
Bass PLC (Consumer Staples).......................................... 36,800 479,490
BG PLC (Utilities)................................................... 147,300 491,562
BICC Group PLC (Industrial & Commercial)............................. 23,418 65,125
Blue Circle Industries PLC (Materials)............................... 43,550 299,778
BOC Group PLC (Materials)............................................ 22,770 382,542
Boots Co. PLC (Consumer Discretionary)............................... 36,800 426,213
BPB Industries PLC (Materials)....................................... 23,400 132,254
British Aerospace PLC (Industrial & Commercial)...................... 16,788 341,362
British Airways PLC (Information & Entertainment).................... 40,154 466,372
British Petroleum PLC (Energy)....................................... 190,724 2,277,581
British Sky Broadcasting Group PLC (Information & Entertainment)..... 53,600 504,171
British Steel PLC (Materials)........................................ 67,000 166,048
British Telecommunications PLC (Information Technology).............. 194,200 1,407,338
BTR PLC (Industrial & Commercial).................................... 140,627 457,791
Burmah Castrol PLC (Energy).......................................... 10,054 174,337
Cable & Wireless PLC (Information Technology)........................ 83,690 683,156
Cadbury Schweppes PLC (Consumer Discretionary)....................... 36,796 329,858
Caradon PLC (Materials).............................................. 24,120 82,860
Centrica PLC (Utilities)+............................................ 147,300 153,011
Coats Viyella PLC (Consumer Discretionary)........................... 30,095 59,570
Commercial Union PLC (Finance)....................................... 23,423 263,236
</TABLE>
---------------------
97
<PAGE> 99
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (continued)
Courtaulds PLC (Materials)........................................... 16,700 $ 91,791
De La Rue PLC (Information & Entertainment).......................... 3,394 27,205
General Electric PLC (Multi-industry)................................ 97,100 554,358
GKN PLC (Industrial & Commercial).................................... 20,050 347,013
Glaxo Wellcome PLC (Healthcare)...................................... 107,100 2,140,949
Granada Group PLC (Information & Entertainment)...................... 23,406 332,348
Grand Metropolitan PLC (Information & Entertainment)................. 73,642 684,257
Great Universal Stores PLC (Consumer Discretionary).................. 40,200 424,162
Guardian Royal Exchange PLC (Finance)................................ 26,811 122,805
Guinness PLC (Consumer Staples)...................................... 73,600 685,071
Hanson PLC (Industrial & Commercial)................................. 20,122 104,017
Harrisons & Crossfield PLC (Multi-industry).......................... 43,500 86,815
HSBC Holdings PLC (Finance).......................................... 73,668 2,198,110
Imperial Chemical Industries PLC (Materials)......................... 30,100 401,301
Kingfisher PLC (Consumer Staples).................................... 2 23
Ladbroke Group PLC (Information & Entertainment)..................... 40,171 151,142
Land Securities PLC (Real Estate).................................... 26,800 402,460
LASMO PLC (Energy)+.................................................. 26,800 107,410
Legal & General PLC (Finance)+....................................... 40,200 290,666
Lloyds TSB Group Ltd. (Finance)...................................... 187,524 1,885,823
Lonrho PLC (Multi-industry).......................................... 26,804 59,413
Marks & Spencer PLC (Consumer Discretionary)......................... 117,100 973,598
MEPC PLC (Real Estate)............................................... 20,100 169,665
National Power PLC (Utilities)....................................... 46,900 424,271
Peninsular & Oriental Steam PLC (Industrial & Commercial)+........... 26,800 279,158
Pilkington PLC (Materials)........................................... 50,189 102,628
Prudential Corp. PLC (Finance)....................................... 66,935 674,496
Rank Group PLC (Information & Entertainment)+........................ 30,000 211,026
Redland PLC (Materials).............................................. 20,074 107,053
Reed International PLC (Information & Entertainment)................. 46,800 460,115
Reuters Holdings PLC (Industrial & Commercial)....................... 56,900 638,531
Rexam PLC (Materials)................................................ 20,000 93,898
RMC Group PLC (Materials)............................................ 10,100 150,847
Royal & Sun Alliance Insurance Group PLC (Finance)................... 46,881 353,544
Royal Bank of Scotland Group PLC (Finance)........................... 16,726 164,715
RTZ Corp. PLC (Materials)............................................ 40,548 696,473
Sainsbury (J.) PLC (Consumer Staples)................................ 53,547 307,459
Schroders PLC (Finance).............................................. 6,700 187,420
Scottish Power PLC (Utilities)....................................... 33,428 209,438
Sears PLC (Consumer Discretionary)................................... 66,900 84,542
Sedgwick Group PLC (Finance)......................................... 20,546 42,013
Slough Estates PLC (Real Estate)..................................... 16,000 82,971
SmithKline Beecham PLC (Healthcare).................................. 83,629 1,437,822
Southern Electric PLC (Utilities).................................... 16,746 110,946
Tarmac PLC (Consumer Discretionary).................................. 46,887 97,026
Taylor Woodrow PLC (Industrial & Commercial)......................... 26,779 90,846
Tesco PLC (Consumer Discretionary)................................... 63,630 390,336
Thames Water PLC (Industrial & Commercial)........................... 23,436 263,286
Thorn EMI PLC (Consumer Discretionary)............................... 16,777 321,653
Thorn PLC (Consumer Discretionary)+.................................. 16,700 41,798
TI Group PLC (Industrial & Commercial)............................... 16,746 156,420
Unilever PLC (Consumer Staples)...................................... 23,400 625,863
United Utilities PLC (Utilities)..................................... 23,422 267,822
Vodafone Group PLC (Information Technology).......................... 110,432 491,371
Zeneca Group PLC (Real Estate)....................................... 30,100 914,374
------------
35,494,975
------------
TOTAL COMMON STOCK (cost $197,830,288)............................... 207,741,699
------------
</TABLE>
- ---------------------
98
<PAGE> 100
<TABLE>
<CAPTION>
PREFERRED STOCK -- 0.4% SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
AUSTRALIA -- 0.1%
News Corp., Ltd. (Information & Entertainment)....................... 48,289 $ 181,695
------------
GERMANY -- 0.3%
RWE AG (Industrial & Commercial)..................................... 9,100 316,272
SAP AG non voting (Information Technology)........................... 1,640 298,426
------------
614,698
------------
ITALY -- 0.0%
Fiat SpA (Consumer Discretionary).................................... 51,500 87,077
------------
TOTAL PREFERRED STOCK (cost $843,787)................................ 883,470
------------
PRINCIPAL
BONDS & NOTES -- 0.0% AMOUNT
----------------------------------------------------------------------------------------------------
FRANCE -- 0.0%
Establissements Economiques du Casino Guichard--Perrachon 4.50% 2001
(Consumer Discretionary)........................................... $ 43,400 16,204
Sodexho SA 6.00% 2004 (Industrial & Commercial)...................... 30,000 5,221
------------
TOTAL BONDS & NOTES (cost $14,951)................................... 21,425
------------
RIGHTS -- 0.1%+
----------------------------------------------------------------------------------------------------
KOREA -- 0.1%
Samsung Electronics Co zero coupon 7/01/97 (Information
Technology)........................................................ 1,660 78,391
------------
THAILAND -- 0.0%
Bangkok Metro Bank PCL alien shares zero coupon 6/06/97 (1)
(Finance).......................................................... 11,542 0
Land & House PCL alien shares zero coupon 6/27/97 (Real Estate)...... 24,600 21,544
------------
21,544
------------
TOTAL RIGHTS (cost $0)............................................... 99,935
------------
WARRANTS -- 0.0%+ SHARES
----------------------------------------------------------------------------------------------------
FRANCE -- 0.0%
Campagnie Generale des Eaux 5/02/01 (Multi-industry)................. 4,504 3,081
Establissements Economiques du Casino Guichard--Perrachon 7/12/01
(Consumer Discretionary)........................................... 434 4,960
Sodexho SA 6/07/04 (Industrial & Commercial)......................... 6 1,221
------------
9,262
------------
HONG KONG -- 0.0%
Hongkong & Shanghai Hotels Ltd. 12/10/98 (Information &
Entertainment)..................................................... 5,666 1,111
Hysan Development Co., Ltd. 4/30/98 (Real Estate).................... 1,300 725
Oriental Press Group 10/02/98 (Information & Entertainment).......... 7,600 275
Peregrine Investment Holdings Ltd. 5/15/98 (Finance)................. 1,200 333
Stelux Holdings 2/28/98 (Consumer Discretionary)..................... 7,800 282
------------
2,726
------------
INDONESIA -- 0.0%
PT Indah Kiat Pulp & Paper Corp. alien shares 4/13/01 (Materials).... 1,653 527
------------
</TABLE>
---------------------
99
<PAGE> 101
<TABLE>
<CAPTION>
WARRANTS (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ITALY -- 0.0%
Mediobanca SpA 12/31/99 (Finance).................................... 650 $ 246
Riunione Adriatica de Sicur 11/30/97 (Finance)....................... 150 221
Riunione Adriatica de Sicur 11/30/97 (Finance)....................... 250 501
------------
968
------------
SINGAPORE -- 0.0%
Straits Steamship Land Ltd. 12/12/01 (Multi-industry)................ 4,750 4,450
------------
THAILAND -- 0.0%
One Holding PCL 10/11/01 (Multi-industry)(1)......................... 1,120 0
------------
TOTAL WARRANTS (cost $11,963)........................................ 17,933
------------
TOTAL INVESTMENT SECURITIES (cost $198,700,989)...................... 208,764,462
------------
PRINCIPAL
REPURCHASE AGREEMENT -- 3.6% AMOUNT
----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 3.6%
Agreement with State Street Bank & Trust Co., bearing interest of
5.00% dated 5/30/97, to be repurchased 6/2/97 in the amount of
$7,959,315 and collateralized by $7,600,000 U.S. Treasury Notes
7.50% due 2/15/05
(cost $7,956,000).................................................. $ 7,956,000 7,956,000
------------
TOTAL INVESTMENTS --
(cost $206,656,989) 98.8% 216,720,462
Other assets less liabilities -- 1.2 2,638,515
------- -------------
NET ASSETS -- 100.0% $219,358,977
======= ==============
</TABLE>
-----------------------------
+ Non-income producing securities
(1) Fair valued security; see Note 2
- ---------------------
100
<PAGE> 102
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
<S> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------
<CAPTION>
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ESP 355,175,000 USD 2,500,000 06/13/97 $ 42,812
*USD 2,034,676 JPY 254,680,384 06/13/97 156,738
*USD 3,060,000 JPY 383,530,608 06/13/97 240,114
*USD 4,600,000 JPY 576,058,000 06/13/97 356,729
*USD 2,347,349 JPY 293,230,863 06/27/97 180,509
*USD 3,060,000 JPY 382,704,408 06/27/97 239,610
*DEM 3,776,625 USD 2,250,000 07/30/97 35,640
*DEM 3,777,300 USD 2,250,000 07/30/97 35,244
*USD 4,386,461 DEM 7,553,925 07/30/97 42,655
NLG 6,773,547 USD 3,569,345 08/18/97 26,757
JPY 939,623,400 USD 8,425,000 08/25/97 254,253
*USD 431,747 DEM 742,000 08/29/97 5,223
FRF 52,415,117 USD 9,249,509 09/15/97 113,217
JPY 874,750,500 USD 7,870,000 09/16/97 239,086
-----------
1,968,587
-----------
<CAPTION>
GROSS UNREALIZED
DEPRECIATION
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ESP 133,761,838 USD 918,820 06/13/97 $ (6,577)
*JPY 254,680,384 USD 2,092,776 06/13/97 (98,638)
*JPY 345,085,500 USD 2,900,000 06/13/97 (69,311)
*JPY 38,445,108 USD 321,582 06/13/97 (9,222)
*JPY 154,803,113 USD 1,294,882 06/13/97 (37,132)
*JPY 421,254,887 USD 3,461,563 06/13/97 (163,153)
THB 18,501,000 USD 700,000 06/16/97 (34,731)
THB 23,906,769 USD 900,000 06/16/97 (49,411)
THB 18,742,500 USD 700,000 06/16/97 (44,322)
*JPY 293,230,863 USD 2,414,218 06/27/97 (113,640)
*JPY 382,704,408 USD 3,150,868 06/27/97 (148,742)
CHF 8,737,690 USD 6,158,073 08/18/97 (74,533)
THB 5,364,000 USD 200,000 08/18/97 (3,929)
THB 25,390,840 USD 950,000 08/18/97 (15,313)
THB 3,645,000 USD 135,000 08/19/97 (3,534)
THB 23,813,306 USD 885,000 08/19/97 (20,060)
DEM 9,038,603 USD 5,277,708 08/29/97 (45,195)
FRF 5,950,000 USD 1,034,423 09/15/97 (2,700)
-----------
(940,143)
-----------
Net Unrealized Appreciation.................... $ 1,028,444
===========
</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> <C> <C> <C>
CHF -- Swiss Franc JPY -- Japanese Yen
DEM -- Deutsche Mark NLG -- Netherlands Guilder
ESP -- Spanish Peseta THB -- Thailand Baht
FRF -- French Franc USD -- United States Dollar
</TABLE>
See Notes to Financial Statements
---------------------
101
<PAGE> 103
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
CASH CORPORATE HIGH-YIELD
MANAGEMENT BOND GLOBAL BOND BOND
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*.......................... $ -- $42,500,432 $61,103,293 $137,050,715
Short-term securities*.................................... 164,564,663 2,632,717 9,039,000 --
Repurchase agreements (cost equals market)................ 13,851,000 -- -- 2,798,000
Cash...................................................... 90 521 780 15
Foreign currency.......................................... -- -- 195 --
Receivables for --
Fund shares sold......................................... 3,831,866 28,076 136,858 169,088
Dividends and accrued interest........................... 538,030 911,402 1,251,228 2,255,641
Sales of investments..................................... -- 85,789 15,140,920 2,582,069
Variation margin on futures contract..................... -- -- -- --
Foreign currency contracts............................... -- -- -- --
Prepaid expenses.......................................... 5,950 1,170 235,124 3,651
Deferred organizational expenses.......................... 4,816 2,668 2,668 2,588
Unrealized appreciation on forward foreign currency
contracts................................................ -- -- 827,891 --
Due from adviser.......................................... -- -- -- --
------------
182,796,415 46,162,775 87,737,957 144,861,767
------------
LIABILITIES:
Payables for --
Fund shares redeemed..................................... 308,984 4,345 6,664 38,954
Management fees.......................................... 85,842 26,384 46,253 80,806
Purchases of investments................................. -- 570,869 9,863,913 1,000,000
Foreign currency contracts............................... -- -- -- --
Other accrued expenses.................................... 29,191 19,493 26,145 24,450
Unrealized depreciation on forward foreign currency
contracts................................................ -- -- 1,259,635 --
Written call options, at value (proceeds $12,351 on
Balanced/ Phoenix Investment Counsel Portfolio).......... -- -- -- --
Currency swap agreement, at value......................... -- -- -- --
------------
424,017 621,091 11,202,610 1,144,210
------------
NET ASSETS................................................ $182,372,398 $45,541,684 $76,535,347 $143,717,557
============
Shares of beneficial interest outstanding (unlimited
shares authorized)....................................... 17,430,454 4,247,739 7,100,155 13,332,708
Net asset value per share................................. $10.46 $10.72 $10.78 $10.78
============
COMPOSITION OF NET ASSETS:
Capital paid in........................................... $179,212,827 $44,488,388 $73,573,511 $141,614,295
Accumulated undistributed net investment income (loss).... 3,149,105 1,418,109 1,376,673 5,917,382
Accumulated undistributed net realized gain (loss) on
investments, futures contracts and options contracts..... (516) (651,254) 2,087,346 (6,070,127)
Unrealized appreciation (depreciation) on investments..... 10,982 286,441 (73,156) 2,256,007
Unrealized foreign exchange gain (loss) on other assets
and liabilities.......................................... -- -- (429,027) --
Unrealized appreciation (depreciation) on futures
contracts, written options contracts and currency swap
agreements............................................... -- -- -- --
------------
$182,372,398 $45,541,684 $76,535,347 $143,717,557
============
---------------
* Cost
Investment securities.................................... $ -- $42,218,037 $61,176,449 $134,794,708
============
Short-term securities.................................... $164,553,681 $ 2,628,671 $ 9,039,000 $ --
============
<CAPTION>
BALANCED/
PHOENIX
WORLDWIDE SUNAMERICA INVESTMENT
HIGH INCOME BALANCED COUNSEL
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value*.......................... $83,982,118 $21,796,684 $72,472,713
Short-term securities*.................................... 3,683,725 -- 14,878,721
Repurchase agreements (cost equals market)................ 7,137,000 3,891,000 --
Cash...................................................... 208,365 933 3,984
Foreign currency.......................................... 49,426 -- --
Receivables for --
Fund shares sold......................................... 272,714 76,636 188,466
Dividends and accrued interest........................... 1,416,046 88,987 244,587
Sales of investments..................................... 2,363,899 164,722 1,190,462
Variation margin on futures contract..................... -- -- --
Foreign currency contracts............................... -- -- --
Prepaid expenses.......................................... 1,560 240 2,064
Deferred organizational expenses.......................... -- -- --
Unrealized appreciation on forward foreign currency
contracts................................................ -- -- --
Due from adviser.......................................... -- -- --
99,114,853 26,019,202 88,980,997
LIABILITIES:
Payables for --
Fund shares redeemed..................................... 19,149 3,436 13,486
Management fees.......................................... 74,506 16,000 45,361
Purchases of investments................................. 6,441,272 805,831 7,075,299
Foreign currency contracts............................... -- -- --
Other accrued expenses.................................... 21,050 11,151 17,976
Unrealized depreciation on forward foreign currency
contracts................................................ -- -- --
Written call options, at value (proceeds $12,351 on
Balanced/ Phoenix Investment Counsel Portfolio).......... -- -- 13,406
Currency swap agreement, at value......................... -- -- --
6,555,977 836,418 7,165,528
NET ASSETS................................................ $92,558,876 $25,182,784 $81,815,469
Shares of beneficial interest outstanding (unlimited
shares authorized)....................................... 7,319,629 2,108,933 6,037,814
Net asset value per share................................. $12.65 $11.94 $13.55
COMPOSITION OF NET ASSETS:
Capital paid in........................................... $84,156,759 $23,065,053 $72,880,817
Accumulated undistributed net investment income (loss).... 2,389,132 156,265 1,015,292
Accumulated undistributed net realized gain (loss) on
investments, futures contracts and options contracts..... 2,457,965 625,722 3,891,108
Unrealized appreciation (depreciation) on investments..... 3,558,058 1,335,744 4,029,307
Unrealized foreign exchange gain (loss) on other assets
and liabilities.......................................... (3,038) -- --
Unrealized appreciation (depreciation) on futures
contracts, written options contracts and currency swap
agreements............................................... -- -- (1,055)
$92,558,876 $25,182,784 $81,815,469
---------------
* Cost
Investment securities.................................... $80,529,556 $20,460,940 $68,443,406
Short-term securities.................................... $ 3,578,229 $ -- $14,878,721
</TABLE>
See Notes to Financial Statements
- ---------------------
102
<PAGE> 104
<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>
$396,543,521 $13,563,720 $404,628,673 $29,829,942 $717,435,788 $508,412,791 $181,332,063
7,184,106 1,453,000 48,086,442 3,252,000 57,963,574 2,949,488 13,517,536
34,601,000 -- -- -- -- -- --
611 172 551 598 10,530 490,824 5,549
-- 19 -- -- 61,652 -- --
690,897 4,010 550,421 76,715 1,222,343 875,469 58,355
2,227,932 40,696 510,771 70,252 750,005 247,274 268,620
12,579,613 118,565 458,435 141,569 84,115 5,621,182 7,564,568
43,275 -- 229,500 -- -- 30,600 --
-- -- -- -- -- -- --
9,392 102 8,891 1,260 21,069 9,406 5,711
2,668 46 2,588 88 -- 2,588 3,164
145,019 -- -- -- -- -- --
-- 4,447 -- -- -- -- --
----------------------------------------------------------------------------------------------------------------
454,028,034 15,184,777 454,476,272 33,372,424 777,549,076 518,639,622 202,755,566
----------------------------------------------------------------------------------------------------------------
152,813 24,957 136,039 48,807 558,211 3,225,488 116,797
206,317 8,002 221,702 21,067 462,650 246,542 106,509
41,862,758 1,099,296 3,975,480 1,671,192 5,370,523 9,316,576 7,357,855
-- -- -- -- -- -- --
38,253 11,792 24,653 13,839 51,697 22,453 34,865
7,414 -- -- -- -- -- --
-- -- -- -- -- -- --
55,157 -- -- -- -- -- --
----------------------------------------------------------------------------------------------------------------
42,322,712 1,144,047 4,357,874 1,754,905 6,443,081 12,811,059 7,616,026
----------------------------------------------------------------------------------------------------------------
$411,705,322 $14,040,730 $450,118,398 $31,617,519 $771,105,995 $505,828,563 $195,139,540
================================================================================================================
27,775,194 1,228,293 24,595,603 2,562,999 41,380,417 25,226,905 13,997,663
$14.82 $11.43 $18.30 $12.34 $18.63 $20.05 $13.94
================================================================================================================
$337,813,834 $13,037,135 $330,675,664 $28,012,657 $603,738,082 $384,654,599 $155,210,131
4,438,642 150,240 1,817,328 109,209 3,309,049 1,037,697 1,087,673
24,808,477 63,916 10,623,516 354,559 7,726,746 24,552,835 17,326,347
44,517,271 789,424 105,560,340 3,141,094 156,332,219 95,306,532 21,515,389
137,152 15 -- -- (101) -- --
(10,054) -- 1,441,550 -- -- 276,900 --
----------------------------------------------------------------------------------------------------------------
$411,705,322 $14,040,730 $450,118,398 $31,617,519 $771,105,995 $505,828,563 $195,139,540
================================================================================================================
$352,032,620 $12,774,296 $299,068,333 $26,688,848 $561,103,569 $413,106,259 $159,816,674
================================================================================================================
$ 7,177,736 $ 1,453,000 $ 48,086,442 $ 3,252,000 $ 57,963,574 $ 2,949,488 $ 13,517,536
================================================================================================================
<CAPTION>
INTERNATIONAL
PUTNAM AGGRESSIVE GLOBAL DIVERSIFIED
GROWTH GROWTH EQUITIES EQUITIES
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$172,138,594 $59,698,077 $287,168,269 $208,764,462
-- -- 26,626,000 --
7,233,000 6,860,000 -- 7,956,000
269 640 500 296,377
-- -- 2,524,627 694,811
171,843 90,293 296,053 378,597
240,992 16,504 991,632 868,235
1,981,336 1,651,271 1,526,786 2,395,908
-- -- -- --
-- -- 2,879,263 78,865
7,363 718 7,522 5,058
-- -- 2,588 --
-- -- -- 1,968,587
-- -- -- --
--------------------------------------------------------------
181,773,397 68,317,503 322,023,240 223,406,900
--------------------------------------------------------------
245,592 30,951 122,126 156,962
124,432 38,699 195,230 181,865
1,910,263 4,422,260 7,017,494 2,488,653
-- -- 2,884,764 78,430
21,497 11,199 157,846 201,870
-- -- -- 940,143
-- -- -- --
-- -- -- --
--------------------------------------------------------------
2,301,784 4,503,109 10,377,460 4,047,923
--------------------------------------------------------------
$179,471,613 $63,814,394 $311,645,780 $219,358,977
==============================================================
10,997,230 6,323,065 20,138,070 19,072,182
$16.32 $10.09 $15.48 $11.50
==============================================================
$122,101,722 $62,216,616 $255,457,433 $202,502,366
114,303 897 1,021,450 (257,991)
33,436,657 (4,782,634) 7,738,955 6,012,771
23,818,931 6,379,515 47,438,261 10,063,473
-- -- (10,319) 1,038,358
-- -- -- --
--------------------------------------------------------------
$179,471,613 $63,814,394 $311,645,780 $219,358,977
==============================================================
$148,319,663 $53,318,562 $239,730,008 $198,700,989
==============================================================
$ -- $ -- $ 26,626,000 $ --
==============================================================
</TABLE>
---------------------
103
<PAGE> 105
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
BALANCED/
WORLDWIDE PHOENIX
CASH CORPORATE GLOBAL HIGH-YIELD HIGH SUNAMERICA INVESTMENT
MANAGEMENT BOND BOND BOND INCOME BALANCED COUNSEL
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Income:
Interest...................... $3,541,492 $1,580,788 $ 2,012,948 $ 6,406,139 $3,162,310 $ 169,542 $ 1,100,920
Dividends..................... -- 18,657 -- -- 41,460 71,663 214,659
-------------------------------------------------------------------------------------------
Total income*............. 3,541,492 1,599,445 2,012,948 6,406,139 3,203,770 241,205 1,315,579
-------------------------------------------------------------------------------------------
Expenses:
Management fees............... 338,018 141,490 258,103 434,380 345,363 57,748 251,801
Custodian fees................ 27,170 22,845 34,905 27,000 24,475 15,670 28,870
Auditing fees................. 6,900 5,560 6,455 7,885 6,460 5,050 6,515
Reports to investors.......... 4,070 2,470 4,280 6,635 3,855 1,200 3,680
Amortization of organizational
expenses.................... 3,576 1,971 1,971 1,906 -- -- --
Legal fees.................... 1,120 479 711 1,105 711 428 668
Trustees' fees................ 658 334 403 566 437 214 557
Interest expense.............. -- -- -- 114 -- -- --
Other expenses................ 3,058 1,086 1,536 2,128 1,233 698 1,475
-------------------------------------------------------------------------------------------
Total expenses before
reimbursement............. 384,570 176,235 308,364 481,719 382,534 81,008 293,566
Expenses reimbursed by the
investment adviser........ -- -- -- -- -- -- --
-------------------------------------------------------------------------------------------
Net investment income........... 3,156,922 1,423,210 1,704,584 5,924,420 2,821,236 160,197 1,022,013
-------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCIES:
Net realized gain (loss) on
investments................. 1,093 128,397 (960,898) 2,399,694 3,059,478 636,959 4,042,989
Net realized gain on futures
contracts and options
contracts................... -- -- -- -- -- -- 2,210
Net realized foreign exchange
gain (loss) on other assets
and liabilities............. -- -- 3,231,773 -- (73,004) -- --
Change in unrealized
appreciation/depreciation on
investments................. 17,399 (872,678) (2,113,841) (2,637,274) 656,730 512,936 (1,836,822)
Change in unrealized foreign
exchange gain/loss on other
assets and liabilities...... -- -- (753,331) -- 1,439 -- --
Change in unrealized
appreciation/depreciation on
futures contracts, written
options contracts, and
currency swap agreements.... -- -- -- -- -- -- (1,055)
-------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments
and foreign currencies...... 18,492 (744,281) (596,297) (237,580) 3,644,643 1,149,895 2,207,322
-------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................... $3,175,414 $ 678,929 $ 1,108,287 $ 5,686,840 $6,465,879 $1,310,092 $ 3,229,335
===========================================================================================
---------------
* Net of foreign withholding
taxes on interest and dividends
of:............................ $ -- $ 2,309 $ 26,865 $ 7,013 $ -- $ 1,254 $ 1,733
===========================================================================================
</TABLE>
See Notes to Financial Statements
- ---------------------
104
<PAGE> 106
<TABLE>
<CAPTION>
GROWTH/
PHOENIX
ASSET GROWTH- FEDERATED VENTURE ALLIANCE INVESTMENT PUTNAM
ALLOCATION UTILITY INCOME VALUE VALUE GROWTH COUNSEL GROWTH
<S> <C> <C> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 4,488,956 $ 16,746 $ 601,179 $ 22,809 $ 1,346,104 $ 90,725 $ 656,442 $ 203,478
2,046,332 187,762 2,451,595 184,440 4,441,450 2,348,492 1,105,706 644,283
-----------------------------------------------------------------------------------------------------------------------
6,535,288 204,508 3,052,774 207,249 5,787,554 2,439,217 1,762,148 847,761
-----------------------------------------------------------------------------------------------------------------------
1,098,284 36,245 1,141,654 66,565 2,325,974 1,295,066 610,165 679,684
69,680 18,110 49,870 15,760 85,005 54,285 36,565 30,190
13,795 4,900 14,140 5,010 21,290 16,115 9,420 8,920
14,500 771 15,675 1,370 24,260 18,350 8,875 8,085
1,971 -- 1,906 -- -- 1,906 1,906 1,906
2,176 394 2,210 394 3,900 2,417 1,131 1,165
2,185 154 2,195 214 3,562 2,482 1,191 866
-- -- -- -- -- -- -- --
4,699 654 4,539 3,864 6,530 4,733 3,017 2,642
-----------------------------------------------------------------------------------------------------------------------
1,207,290 61,228 1,232,189 93,177 2,470,521 1,395,354 672,270 733,458
-- (10,485) -- -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------
5,327,998 153,765 1,820,585 114,072 3,317,033 1,043,863 1,089,878 114,303
-----------------------------------------------------------------------------------------------------------------------
26,455,241 72,051 10,370,300 377,034 7,790,180 25,688,269 17,282,556 33,450,063
775,213 -- 1,224,416 -- -- 587,220 194,755 --
(131,342) 12 35 -- (184) -- 22 --
8,513,127 501,733 38,488,239 1,944,985 65,212,719 28,479,715 (5,813,584) (21,516,562)
137,152 (124) -- -- (442) -- -- --
(1,271,585) -- 479,169 -- -- (120,600) -- --
-----------------------------------------------------------------------------------------------------------------------
34,477,806 573,672 50,562,159 2,322,019 73,002,273 54,634,604 11,663,749 11,933,501
-----------------------------------------------------------------------------------------------------------------------
$39,805,804 $727,437 $52,382,744 $2,436,091 $76,319,306 $55,678,467 $12,753,627 $12,047,804
===============================================================================================================================
$ 446 $ 1,598 $ 14,194 $ 1,635 $ 40,872 $ 24,621 $ 32,075 $ 6,691
===============================================================================================================================
<CAPTION>
INTERNATIONAL
AGGRESSIVE GLOBAL DIVERSIFIED
GROWTH EQUITIES EQUITIES
<S> <C> <C> <C> <C>
------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 113,853 $ 331,140 $ 257,954
99,599 2,054,834 1,813,536
------------------------------------------------------------
213,452 2,385,974 2,071,490
------------------------------------------------------------
175,674 1,034,610 896,493
22,680 200,515 312,615
5,860 11,435 9,290
3,265 13,070 9,595
218 1,906 --
540 1,619 1,225
334 1,586 900
-- -- --
714 3,784 1,816
------------------------------------------------------------
209,285 1,268,525 1,231,934
-- -- --
------------------------------------------------------------
4,167 1,117,449 839,556
------------------------------------------------------------
(4,076,732) 8,330,242 1,370,769
-- -- --
-- (16,493) 5,140,156
3,288,302 17,048,264 3,690,792
-- (11,955) 41,510
-- -- --
------------------------------------------------------------
(788,430) 25,350,058 10,243,227
------------------------------------------------------------
$ (784,263) $26,467,507 $11,082,783
============================================================
$ 589 $ 217,876 $ 269,031
============================================================
</TABLE>
---------------------
105
<PAGE> 107
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED MAY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
CASH CORPORATE HIGH-YIELD
MANAGEMENT BOND GLOBAL BOND BOND
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.................................. $ 3,156,922 $ 1,423,210 $ 1,704,584 $ 5,924,420
Net realized gain (loss) on investments................ 1,093 128,397 (960,898) 2,399,694
Net realized gain on futures contracts and options
contracts............................................. -- -- -- --
Net realized foreign exchange gain (loss) on other
assets and liabilities................................ -- -- 3,231,773 --
Change in unrealized appreciation/depreciation on
investments........................................... 17,399 (872,678) (2,113,841) (2,637,274)
Change in unrealized foreign exchange gain/loss on
other assets and liabilities.......................... -- -- (753,331) --
Change in unrealized appreciation/depreciation on
futures contracts, written options contracts, and
currency swap agreements.............................. -- -- -- --
--------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations............................................ 3,175,414 678,929 1,108,287 5,686,840
--------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.................. (6,330,000) (2,010,000) (4,705,000) (8,890,000)
Distribution from net realized gain on investments.... -- -- (275,000) --
--------------------------------------------------------
Total dividends and distributions to shareholders...... (6,330,000) (2,010,000) (4,980,000) (8,890,000)
--------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 419,499,763 14,680,120 16,656,884 79,972,005
Proceeds from shares issued for reinvestment of
dividends and distributions........................... 6,330,000 2,010,000 4,980,000 8,890,000
Cost of shares repurchased............................. (331,549,575) (7,024,772) (9,451,241) (55,170,381)
--------------------------------------------------------
Net increase in net assets resulting from capital share
transactions.......................................... 94,280,188 9,665,348 12,185,643 33,691,624
--------------------------------------------------------
TOTAL INCREASE IN NET ASSETS........................... 91,125,602 8,334,277 8,313,930 30,488,464
NET ASSETS:
Beginning of period.................................... 91,246,796 37,207,407 68,221,417 113,229,093
--------------------------------------------------------
End of period.......................................... $ 182,372,398 $45,541,684 $76,535,347 $143,717,557
========================================================
---------------
Accumulated undistributed net investment income
(loss)................................................ $ 3,149,105 $ 1,418,109 $ 1,376,673 $ 5,917,382
========================================================
Shares issued and repurchased:
Sold................................................... 39,585,370 1,349,335 1,495,993 7,317,204
Issued in reinvestment of dividends and
distributions......................................... 611,004 190,883 466,728 837,889
Repurchased............................................ (31,245,666) (646,848) (847,112) (5,075,031
--------------------------------------------------------
Net increase........................................... 8,950,708 893,370 1,115,609 3,080,062
========================================================
<CAPTION>
BALANCED/
WORLDWIDE PHOENIX
HIGH SUNAMERICA INVESTMENT
INCOME BALANCED COUNSEL
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income.................................. $ 2,821,236 $ 160,197 $ 1,022,013
Net realized gain (loss) on investments................ 3,059,478 636,959 4,042,989
Net realized gain on futures contracts and options
contracts............................................. -- -- 2,210
Net realized foreign exchange gain (loss) on other
assets and liabilities................................ (73,004) -- --
Change in unrealized appreciation/depreciation on
investments........................................... 656,730 512,936 (1,836,822)
Change in unrealized foreign exchange gain/loss on
other assets and liabilities.......................... 1,439 -- --
Change in unrealized appreciation/depreciation on
futures contracts, written options contracts, and
currency swap agreements.............................. -- -- (1,055)
-----------------------------------------
Net increase (decrease) in net assets resulting from
operations............................................ 6,465,879 1,310,092 3,229,335
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.................. (3,530,000) (60,000) (1,265,000)
Distribution from net realized gain on investments.... (3,570,000) (40,000) (2,245,000)
------------------------------------------
Total dividends and distributions to shareholders...... (7,100,000) (100,000) (3,510,000)
------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 60,307,264 16,007,568 18,944,664
Proceeds from shares issued for reinvestment of
dividends and distributions........................... 7,100,000 100,000 3,510,000
Cost of shares repurchased............................. (23,418,764) (2,358,670) (10,379,088)
------------------------------------------
Net increase in net assets resulting from capital share
transactions.......................................... 43,988,500 13,748,898 12,075,576
------------------------------------------
TOTAL INCREASE IN NET ASSETS........................... 43,354,379 14,958,990 11,794,911
NET ASSETS:
Beginning of period.................................... 49,204,497 10,223,794 70,020,558
------------------------------------------
End of period.......................................... $ 92,558,876 $25,182,784 $ 81,815,469
==========================================
Accumulated undistributed net investment income
(loss)................................................ $ 2,389,132 $ 156,265 $ 1,015,292
==========================================
Shares issued and repurchased:
Sold................................................... 4,965,205 1,389,381 1,409,452
Issued in reinvestment of dividends and
distributions......................................... 606,320 8,651 269,378
Repurchased............................................ (1,938,092) (207,996) (777,050)
------------------------------------------
Net increase........................................... 3,633,433 1,190,036 901,780
==========================================
</TABLE>
See Notes to Financial Statements
- ---------------------
106
<PAGE> 108
<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>
----------------------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
$ 5,327,998 $ 153,765 $ 1,820,585 $ 114,072 $ 3,317,033 $ 1,043,863 $ 1,089,878
26,455,241 72,051 10,370,300 377,034 7,790,180 25,688,269 17,282,556
775,213 -- 1,224,416 -- -- 587,220 194,755
(131,342) 12 35 -- (184) -- 22
8,513,127 501,733 38,488,239 1,944,985 65,212,719 28,479,715 (5,813,584)
137,152 (124) -- -- (442) -- --
(1,271,585) -- 479,169 -- -- (120,600) --
----------------------------------------------------------------------------------------------------------------
39,805,804 727,437 52,382,744 2,436,091 76,319,306 55,678,467 12,753,627
----------------------------------------------------------------------------------------------------------------
(9,550,000) (85,000) (2,770,000) (45,000) (3,390,000) (1,200,000) (1,325,000)
(21,740,000) (21,000) (15,835,000) -- (9,745,000) (23,710,000) (16,255,000)
----------------------------------------------------------------------------------------------------------------
(31,290,000) (106,000) (18,605,000) (45,000) (13,135,000) (24,910,000) (17,580,000)
----------------------------------------------------------------------------------------------------------------
86,282,360 7,973,808 116,760,446 21,694,676 267,406,474 163,514,035 17,039,353
31,290,000 106,000 18,605,000 45,000 13,135,000 24,910,000 17,580,000
(30,771,268) (959,162) (44,488,117) (4,972,776) (89,033,156) (94,730,612) (21,021,018)
----------------------------------------------------------------------------------------------------------------
86,801,092 7,120,646 90,877,329 16,766,900 191,508,318 93,693,423 13,598,335
----------------------------------------------------------------------------------------------------------------
95,316,896 7,742,083 124,655,073 19,157,991 254,692,624 124,461,890 8,771,962
316,388,426 6,298,647 325,463,325 12,459,528 516,413,371 381,366,673 186,367,578
----------------------------------------------------------------------------------------------------------------
$411,705,322 $14,040,730 $450,118,398 $31,617,519 $771,105,995 $505,828,563 $195,139,540
================================================================================================================
$ 4,438,642 $ 150,240 $ 1,817,328 $ 109,209 $ 3,309,049 $ 1,037,697 $ 1,087,673
================================================================================================================
5,884,342 719,820 6,749,892 1,879,931 15,263,068 8,633,426 1,212,046
2,220,724 9,628 1,105,466 3,896 755,319 1,397,083 1,337,899
(2,120,774) (87,031) (2,614,781) (445,078) (5,202,177) (5,169,253) (1,507,783
----------------------------------------------------------------------------------------------------------------
5,984,292 642,417 5,240,577 1,438,749 10,816,210 4,861,256 1,042,162
================================================================================================================
<CAPTION>
INTERNATIONAL
PUTNAM AGGRESSIVE GLOBAL DIVERSIFIED
GROWTH GROWTH EQUITIES EQUITIES
<S> <C> <C> <C> <C>
--------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 114,303 $ 4,167 $ 1,117,449 $ 839,556
33,450,063 (4,076,732) 8,330,242 1,370,769
-- -- -- --
-- -- (16,493) 5,140,156
(21,516,562) 3,288,302 17,048,264 3,690,792
-- -- (11,955) 41,510
-- -- -- --
--------------------------------------------------------------
12,047,804 (784,263) 26,467,507 11,082,783
--------------------------------------------------------------
-- (43,000) (2,305,000) (5,175,000)
(5,465,000) -- (12,550,000) (1,600,000)
--------------------------------------------------------------
(5,465,000) (43,000) (14,855,000) (6,775,000)
--------------------------------------------------------------
37,765,769 37,336,981 73,241,937 74,790,298
5,465,000 43,000 14,855,000 6,775,000
(30,415,005) (7,862,626) (34,545,670) (23,522,497)
--------------------------------------------------------------
12,815,764 29,517,355 53,551,267 58,042,801
--------------------------------------------------------------
19,398,568 28,690,092 65,163,774 62,350,584
160,073,045 35,124,302 246,482,006 157,008,393
--------------------------------------------------------------
$179,471,613 $63,814,394 $311,645,780 $219,358,977
==============================================================
$ 114,303 $ 897 $ 1,021,450 $ (257,991)
==============================================================
2,410,189 3,697,970 4,936,707 6,749,967
357,190 4,470 1,045,391 636,748
(1,959,270) (768,798) (2,359,418) (2,125,027)
--------------------------------------------------------------
808,109 2,933,642 3,622,680 5,261,688
==============================================================
</TABLE>
---------------------
107
<PAGE> 109
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED NOVEMBER 30, 1996
<TABLE>
<CAPTION>
CASH CORPORATE GLOBAL HIGH-YIELD
MANAGEMENT BOND BOND BOND
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)......................... $ 6,327,403 $ 2,009,395 $ 3,420,685 $ 8,892,022
Net realized gain (loss) on investments.............. (1,609) (242,797) 845,133 567,983
Net realized gain (loss) on futures and options
contracts........................................... -- (180,880) 59,164 --
Net realized foreign exchange gain (loss) on other
assets and liabilities.............................. -- -- 1,545,047 --
Change in unrealized appreciation/depreciation on
investments......................................... (9,491) 647,548 1,124,599 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 2,193,377 6,741,310 13,687,889
----------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income................ (4,240,000) (1,225,000) (4,060,000) (7,420,000)
Distribution from net realized gain on
investments....................................... (4,750) -- -- --
----------------------------------------------------------
Total dividends and distributions to shareholders.... (4,244,750) (1,225,000) (4,060,000) (7,420,000)
----------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold............................ 615,571,205 20,121,281 26,461,284 89,355,894
Proceeds from shares issued for reinvestment of
dividends and distributions......................... 4,244,750 1,225,000 4,060,000 7,420,000
Cost of shares repurchased........................... (621,371,905) (14,581,771) (24,740,221) (71,988,357)
----------------------------------------------------------
Net increase (decrease) in net assets resulting from
capital share transactions.......................... (1,555,950) 6,764,510 5,781,063 24,787,537
----------------------------------------------------------
TOTAL INCREASE IN NET ASSETS......................... 515,603 7,732,887 8,462,373 31,055,426
NET ASSETS:
Beginning of period.................................. 90,731,193 29,474,520 59,759,044 82,173,667
----------------------------------------------------------
End of period........................................ $ 91,246,796 $ 37,207,407 $ 68,221,417 $113,229,093
==========================================================
---------------
Accumulated undistributed net investment income...... $ 6,322,183 $ 2,004,899 $ 4,377,089 $ 8,882,962
==========================================================
Shares issued and repurchased:
Sold................................................. 57,928,895 1,891,179 2,437,840 8,529,658
Issued in reinvestment of dividends and
distributions....................................... 408,149 118,015 391,137 744,233
Repurchased.......................................... (58,340,347) (1,379,014) (2,268,851) (6,827,580
----------------------------------------------------------
Net increase (decrease).............................. (3,303) 630,180 560,126 2,446,311
==========================================================
<CAPTION>
BALANCED/
WORLDWIDE PHOENIX
HIGH SUNAMERICA INVESTMENT
INCOME BALANCED# COUNSEL
<S> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------
<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
=========================================
Accumulated undistributed net investment income...... $ 3,097,896 $ 56,068 $ 1,258,279
=========================================
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
- ---------------------
108
<PAGE> 110
<TABLE>
<CAPTION>
GROWTH/
PHOENIX
ASSET GROWTH- FEDERATED VENTURE ALLIANCE INVESTMENT
ALLOCATION UTILITY# INCOME VALUE# VALUE GROWTH COUNSEL
----------------------------------------------------------------------------------------------------------------
<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
================================================================================================================
$ 8,660,644 $ 81,475 $ 2,766,743 $ 40,137 $ 3,382,016 $ 1,193,834 $ 1,322,795
================================================================================================================
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
PUTNAM AGGRESSIVE GLOBAL DIVERSIFIED
GROWTH GROWTH# EQUITIES EQUITIES
------------------------------------------------------------------------------
<C> <C> <C> <C>
$ (23,455) $ 39,730 $ 2,128,761 $ 481,375
8,612,831 (705,902) 12,300,321 1,688,079
-- -- -- --
-- -- 496,594 5,292,994
17,288,052 3,091,213 19,341,166 5,555,457
-- -- (27,011) (813,250)
-- -- -- --
--------------------------------------------------------------
25,877,428 2,425,041 34,239,831 12,204,655
--------------------------------------------------------------
-- -- (1,885,000) (1,350,000)
-- -- (4,480,000) --
--------------------------------------------------------------
-- -- (6,365,000) (1,350,000)
--------------------------------------------------------------
55,935,417 39,091,029 99,072,900 133,585,152
-- -- 6,365,000 1,350,000
(37,015,839) (6,391,768) (52,582,422) (37,742,073)
--------------------------------------------------------------
18,919,578 32,699,261 52,855,478 97,193,079
--------------------------------------------------------------
44,797,006 35,124,302 80,730,309 108,047,734
115,276,039 -- 165,751,697 48,960,659
--------------------------------------------------------------
$160,073,045 $35,124,302 $246,482,006 $157,008,393
==============================================================
$ -- $ 39,730 $ 2,209,001 $ 4,077,453
==============================================================
4,113,284 4,051,127 7,165,202 12,354,619
-- -- 472,181 130,941
(2,724,390) (661,704) (3,815,033) (3,499,995)
--------------------------------------------------------------
1,388,894 3,389,423 3,822,350 8,985,565
==============================================================
</TABLE>
---------------------
109
<PAGE> 111
- ---------------------
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 Trustees may establish additional series in the future. 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 Corporate Bond Portfolio seeks a high total return with only moderate price
risk by investing primarily in investment grade fixed-income securities.
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 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 Putnam Growth
Portfolios (formerly, the Provident Growth Portfolio) 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 Aggressive Growth Portfolio seeks long-term growth of capital through
investment primarily in equity securities of small capitalization growth
companies.
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.
- ---------------------
110
<PAGE> 112
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.
2. SIGNIFICANT ACCOUNTING POLICIES: The preparation of financial statements in
accordance with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from these estimates.
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 May 31, 1997, and the results of its
operations, the changes in its net assets and its financial highlights for the
periods then ended. The 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, other long-term debt securities, and
short-term securities with original or remaining maturities in excess of 60 days
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. Futures contracts are valued at the last sale price established
each day by the board of trade or exchange on which they are traded. 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. Assets and liabilities denominated in foreign
currencies and commitments under forward foreign currency contracts are
translated into U.S. dollars at the mean of the quoted bid and asked prices of
such currencies against the U.S. dollar.
The 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. Similarly, 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 and losses on other assets and liabilities and
change in unrealized foreign exchange gain and losses on other assets and
liabilities include realized foreign exchange gains and losses from currency
gains or losses between the trade and settlement dates of securities
transactions, the difference between the amounts of interest, dividends and
foreign withholding taxes recorded on the 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.
FORWARD FOREIGN CURRENCY CONTRACTS: Certain portfolios may enter into forward
foreign currency contracts ("forward contracts") to attempt to protect
securities and related receivables and payables against changes in future
foreign exchange rates or to enhance return. A forward contract is an agreement
between two parties to buy or sell currency at a set price on a future date. The
market value of the contract will fluctuate with changes in currency exchange
rates. The contract is marked-to-market daily using the forward rate and the
change in market value is recorded by the Portfolio as unrealized gain or loss.
Upon settlement date, the Portfolio records either realized gains or losses when
the contract is closed 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. Risks may
arise upon entering into these contracts from the potential inability of
counterparties to meet the terms of their contracts and from unanticipated
movements in the value of a foreign currency relative to the U.S. dollar.
Forward contracts involve elements of 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.
---------------------
111
<PAGE> 113
FUTURES CONTRACTS: A futures contract is an agreement between two parties to
buy and sell a financial instrument 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.
OPTIONS: An option is a contract conveying a right to buy or sell a financial
instrument at a specified price during a stipulated period. The premium paid by
a Portfolio for the purchase of a call or a put option is included in the
Portfolio's Statement of Assets and Liabilities as an investment and
subsequently marked to market to reflect the current market value of the option.
When a Portfolio writes a call or a put option, an amount equal to the premium
received by the Portfolio is included in the Portfolio's Statement of Assets and
Liabilities as a liability and is subsequently marked to market to reflect the
current market value of the option written. If an option which the Portfolio has
written either expires on its stipulated expiration date, or if the Portfolio
enters into a closing purchase transaction, the Portfolio realizes a gain (or
loss if the cost of a closing purchase transaction exceeds the premium received
when the option was written) without regard to any unrealized gain or loss on
the underlying security, and the liability related to such options is
extinguished. If a call option which the Portfolio has written is exercised, the
Portfolio realizes a capital gain or loss from the sale of the underlying
security and the proceeds from such sale are increased by the premium originally
received. If a put option which the Portfolio has written is exercised, the
amount of the premium originally received reduces the cost of the security which
the Portfolio purchased upon exercise of the option.
CURRENCY SWAPS: Currency swaps involve the exchange by a Portfolio with
another party of its respective rights to make or receive payments in specified
currencies. Currency swaps usually involve the delivery of the principal value
of one designated currency in exchange for the other designated currency.
Therefore, the entire principal value of a currency swap is subject to the risk
that the other party will default on its contractual delivery obligations.
Currency swaps involve elements of risk in excess of the amount reflected in the
Statement of Assets and Liabilities. Changes in the value of the swap are
reported as unrealized appreciation or depreciation in the Statement of Assets
and Liabilities. A realized gain or loss is recorded upon early termination of
such agreement.
SECURITIES TRANSACTIONS, INVESTMENT INCOME, EXPENSES, DIVIDENDS AND
DISTRIBUTIONS: As is customary in the mutual fund industry, securities
transactions are recorded on a trade date basis. 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.
Common expenses incurred by the Trust are allocated among the Portfolios based
upon relative net assets or other appropriate allocation methods. In all other
respects, expenses are charged to each Portfolio as incurred on a specific
identification basis.
The Portfolios record dividends and distributions to its shareholders on the
ex-dividend date. The amount of dividends and distributions from net investment
income and net realized capital gains are determined and presented in accordance
with federal income tax regulations, which may differ from generally accepted
accounting principles. These "book/tax" differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature, such amounts are reclassified within the capital accounts based on
their federal tax-basis treatment; temporary differences do not require
reclassification. 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. Net
investment income/loss, net realized gain/loss, and net assets were not
affected.
- ---------------------
112
<PAGE> 114
For the year ended November 30, 1996, 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 PAID-IN
INVESTMENT INCOME/(LOSS) REALIZED GAIN/(LOSS) CAPITAL
----------------------------------------------------
<S> <C> <C> <C>
Cash Management......................................... $ (167) $ 167 $ --
Corporate Bond.......................................... 620 (620) --
Global Bond*............................................ 1,396,295 (1,425,231) (28,936)
Worldwide High Income*.................................. (487,946) 487,946 --
Balanced/Phoenix Investment Counsel..................... 1,029 (1,029) --
Asset Allocation........................................ (800) 800 --
Utility................................................. (230) 230 --
Growth-Income........................................... 29 (29) --
Venture Value........................................... 2,021 (2,021) --
Growth/Phoenix Investment Counsel....................... (510) 510 --
Putnam Growth........................................... 23,455 -- (23,455)
Global Equities*........................................ 496,594 (496,594) --
International Diversified Equities*..................... 5,292,994 (5,292,994) --
</TABLE>
* Reclassification is primarily due to differing book/tax treatments for
foreign currency transactions.
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 May 30, 1997, the Cash Management, High-Yield Bond,
SunAmerica Balanced, and Aggressive Growth Portfolios had a 20.4%, 4.1%, 5.7%
and 10.1%, undivided interest, respectively, which represented $13,851,000,
$2,798,000, $3,891,000 and $6,860,000, respectively, 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 therefore was as follows:
Paine Webber Securities, Inc. Repurchase Agreement, 5.45% dated 5/30/97, in
the principal amount of $67,813,000 repurchase price $67,843,798 due 6/2/97
collateralized by $73,520,000 U.S. Treasury Notes 6.50% due 11/15/26,
approximate aggregate value $69,247,018.
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 for book purposes, (which approximates tax basis), including
short-term securities at May 31, 1997, were as follows:
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE UNREALIZED CAPITAL
UNREALIZED UNREALIZED GAIN/(LOSS) COST OF LOSS
GAIN (LOSS) NET INVESTMENTS CARRYOVER*+
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Cash Management**.................................. $ 15,868 $ 4,886 $ 10,982 $178,404,681 $ 68
Corporate Bond..................................... 637,871 351,430 286,441 44,846,708 769,710
Global Bond........................................ 576,639 649,795 (73,156) 70,215,449 --
High-Yield Bond.................................... 4,143,917 1,887,910 2,256,007 137,592,708 8,449,586
Worldwide High Income.............................. 3,718,376 160,318 3,558,058 91,244,785 --
SunAmerica Balanced................................ 1,685,644 349,900 1,335,744 24,351,940 --
Balanced/Phoenix Investment Counsel................ 4,604,562 575,255 4,029,307 83,322,127 --
Asset Allocation................................... 46,528,117 2,010,846 44,517,271 393,811,356 --
Utility............................................ 951,522 162,098 789,424 14,227,296 --
Growth-Income...................................... 108,338,664 2,778,324 105,560,340 347,154,775 --
Federated Value.................................... 3,259,175 118,081 3,141,094 29,940,848 16,874
Venture Value...................................... 160,048,771 3,716,552 156,332,219 619,067,143 --
Alliance Growth.................................... 99,460,348 4,153,816 95,306,532 416,055,747 --
Growth/Phoenix Investment Counsel.................. 22,128,715 613,326 21,515,389 173,334,210 --
Putnam Growth Portfolio............................ 24,340,653 521,722 23,818,931 155,552,663 --
Aggressive Growth**................................ 6,947,457 567,942 6,379,515 60,178,562 248,317
Global Equities.................................... 51,786,035 4,347,774 47,438,261 266,356,008 --
International Diversified Equities................. 21,729,009 11,665,536 10,063,473 206,656,989 --
</TABLE>
* Expire 2002-2004
** Post 10/31/96 Capital Loss Deferrals: Cash Management $1,541; Aggressive
Growth $453,463
+ Net capital loss carryovers reported as of November 30, 1996, which are
available to the extent provided in regulations to offset future capital
gains. To the extent that these carryovers are used to offset future capital
gains, it is probable that these gains so offset will not be distributed.
---------------------
113
<PAGE> 115
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", as used in the following table, means the
average daily net assets of the Portfolios.
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%
> $100 million 0.50%
> $300 million 0.45%
Corporate Bond $0--$ 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
SunAmerica Balanced- $0--$ 50 million 0.70%
Balanced/Phoenix > $ 50 million 0.65%
Investment Counsel- > $150 million 0.60%
Growth-Income- > $300 million 0.55%
Alliance Growth- > $500 million 0.50%
Growth/Phoenix
Investment Counsel
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ---------------------------------------------------------
<S> <C> <C>
Utility-Federated Value $0--$150 million 0.75%
> $150 million 0.60%
> $500 million 0.50%
Venture Value $0--$100 million 0.80%
> $100 million 0.75%
> $500 million 0.70%
Putnam Growth $0--$150 million 0.85%
> $150 million 0.80%
> $300 million 0.70%
Aggressive Growth $0--$100 million 0.75%
> $100 million 0.675%
> $250 million 0.625%
> $500 million 0.60%
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 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, Utility and Federated Value
Portfolios; Morgan Stanley Asset Management Inc., a wholly owned subsidiary of
Morgan Stanley Group, Inc., serves as subadviser for the Worldwide High Income
and International Diversified Equities Portfolios; Phoenix Investment Counsel,
Inc. serves as subadviser for the Balanced/Phoenix Investment Counsel and
Growth/Phoenix Investment Counsel Portfolios; Alliance Capital Management L.P.
serves as a subadviser for the Growth-Income, Alliance Growth and Global
Equities Portfolios; Davis Selected Advisers, L.P. serves as subadviser for the
Venture Value Portfolio; and Putnam Investment Management, Inc. serves as
subadviser for the Putnam Growth Portfolio. Effective April 16, 1997 Putnam
Investment Management, Inc. assumed the role as subadviser from Provident
Investment Counsel, Inc. for the Putnam Growth Portfolio (formerly the Provident
Growth Portfolio).
- ---------------------
114
<PAGE> 116
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>
Corporate Bond $0--$ 25 million 0.30%
> $ 25 million 0.25%
> $100 million 0.20%
> $150 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-
Utility-Federated Value $0--$ 20 million 0.55%
> $ 20 million 0.35%
> $ 50 million 0.25%
> $150 million 0.20%
> $500 million 0.15%
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ---------------------------------------------------------
<S> <C> <C>
Venture Value $0--$100 million 0.45%
> $100 million 0.40%
> $500 million 0.35%
Putnam Growth $0--$150 million 0.50%
> $150 million 0.45%
> $300 million 0.35%
Global Equities $0--$ 50 million 0.50%
> $ 50 million 0.40%
> $150 million 0.30%
> $300 million 0.25%
</TABLE>
For certain Portfolios, the Adviser has voluntarily agreed to reimburse
expenses, if necessary, to keep annual operating expenses at or below the
following percentages of each of the following Portfolio's average net assets:
SunAmerica Balanced Portfolio -- 1.00%, Utility Portfolio -- 1.05%, Federated
Value Portfolio -- 1.05% and Aggressive Growth Portfolio -- 1.05%. The Adviser
also may voluntarily 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 are amortized on a straight line basis by each
applicable 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 six months ended May 31, 1997, was as
follows:
<TABLE>
<CAPTION>
CASH CORPORATE GLOBAL HIGH-YIELD WORLDWIDE SUNAMERICA
MANAGEMENT BOND BOND BOND HIGH INCOME BALANCED
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Purchases of portfolio
securities............... $ -- $20,895,399 $116,904,571 $145,777,223 $90,331,068 $22,669,478
Sales of portfolio
securities............... -- 13,383,056 107,563,660 120,077,381 50,533,026 10,405,100
U.S. government securities
included above were as
follows:
Purchases of U.S.
government securities.... -- 645,984 6,421,484 -- -- 4,185,100
Sales of U.S. government
securities............... -- 2,292,494 19,077,656 -- -- 1,123,175
</TABLE>
---------------------
115
<PAGE> 117
<TABLE>
<CAPTION>
BALANCED/PHOENIX
INVESTMENT ASSET FEDERATED
COUNSEL ALLOCATION UTILITY GROWTH- INCOME VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Purchases of portfolio
securities............... $102,097,674 $ 382,889,359 $ 8,850,453 $ 133,781,842 $ 21,689,255
Sales of portfolio
securities............... 96,947,860 311,576,450 1,874,786 83,438,999 5,532,878
U.S. government securities
included above were as
follows:
Purchases of U.S.
government securities.... 40,416,119 196,024,600 -- -- --
Sales of U.S. government
securities............... 38,691,305 196,922,491 -- -- --
<CAPTION>
VENTURE
VALUE
--------------
<S> <C>
Purchases of portfolio
securities............... $ 224,975,193
Sales of portfolio
securities............... 51,388,739
U.S. government securities
included above were as
follows:
Purchases of U.S.
government securities.... 425,238
Sales of U.S. government
securities............... --
<CAPTION>
GROWTH/PHOENIX
ALLIANCE INVESTMENT PUTNAM AGGRESSIVE GLOBAL
GROWTH COUNSEL GROWTH GROWTH EQUITIES
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Purchases of portfolio
securities............... $317,337,904 $199,976,938 $ 153,967,335 $ 77,461,879 $ 141,842,989
Sales of portfolio
securities............... 242,337,022 193,772,817 148,300,906 49,065,452 119,235,104
U.S. government securities
included above were as
follows:
Purchases of U.S.
government securities.... -- 5,211,413 868,261 -- --
Sales of U.S. government
securities............... -- 2,228,018 9,311,632 -- --
<CAPTION>
INTERNATIONAL
DIVERSIFIED
EQUITIES
-------------
<S> <C>
Purchases of portfolio
securities............... $ 91,410,564
Sales of portfolio
securities............... 35,317,974
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 SHELBY
SACHS & CO. CULLOM DAVIS
----------- ------------
<S> <C> <C>
Asset Allocation Portfolio..................................... $32,020 $ --
Venture Value Portfolio........................................ -- 49,392
</TABLE>
9. 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 the Federal Funds rate plus 125 basis points. Borrowings
under the line of credit will commence when the Fund's cash shortfall exceeds
$100,000. During the six months ended May 31, 1997, the High-Yield Bond
Portfolio had borrowings outstanding for 1 day under the line of credit and
incurred $114 in interest charges related to these borrowings. The High-Yield
Bond Portfolio did not have any outstanding borrowing at May 31, 1997.
10. SUBSEQUENT EVENT: Effective June 2, 1997, the SunAmerican Series Trust
issued three new portfolios, the Real Estate Portfolio, International Growth and
Income Portfolio and Emerging Markets Portfolio, each of which represents a
separate managed portfolio of securities with its own investment objective.
- ---------------------
116
<PAGE> 118
- ---------------------
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS*
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIO OF
NET NET
REALIZED RATIO OF INVESTMENT
NET & TOTAL DIVIDENDS DIVIDENDS NET NET EXPENSES INCOME
ASSET NET UNREALIZED FROM DECLARED FROM NET ASSET ASSETS TO TO
VALUE INVEST- GAIN INVEST- FROM NET REALIZED VALUE END OF AVERAGE AVERAGE
PERIOD BEGINNING MENT (LOSS) ON MENT INVESTMENT GAIN ON END OF TOTAL PERIOD NET NET
ENDED OF PERIOD INCOME** INVESTMENTS OPERATIONS INCOME INVESTMENTS PERIOD RETURN*** (000'S) ASSETS ASSETS
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <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% $ 24,603 0.71%+++ 2.53%+++
11/30/94 10.20 0.38 (0.02) 0.36 (0.09) -- 10.47 3.51 89,098 0.70++ 3.73++
11/30/95 10.47 0.56 0.01 0.57 (0.34) -- 10.70 5.59 90,731 0.67 5.32
11/30/96 10.70 0.53 (0.02) 0.51 (0.45) -- 10.76 4.92 91,247 0.62 4.90
5/31/97# 10.76 0.26 -- 0.26 (0.56) -- 10.46 2.48 182,372 0.61+ 5.02+
Corporate Bond Portfolio
7/1/93-
11/30/93 10.00 0.14 0.05 0.19 -- -- 10.19 1.90 11,667 0.94+++ 3.92+++
11/30/94 10.19 0.52 (0.87) (0.35) (0.05) (0.04) 9.75 (3.41) 15,869 0.94++ 5.21++
11/30/95 9.75 0.60 1.00 1.60 (0.53) -- 10.82 17.01 29,475 0.96++ 5.93++
11/30/96 10.82 0.65 0.03 0.68 (0.41) -- 11.09 6.51 37,207 0.97 6.11
5/31/97# 11.09 0.38 (0.22) 0.16 (0.53) -- 10.72 1.49 45,542 0.87+ 7.04+
Global Bond Portfolio
7/1/93-
11/30/93 10.00 0.13 0.17 0.30 -- -- 10.30 3.00 25,010 1.35+++ 3.56+++
11/30/94 10.30 0.53 (0.86) (0.33) (0.09) (0.05) 9.83 (3.18) 44,543 1.06 5.29
11/30/95 9.83 0.60 0.97 1.57 (0.38) -- 11.02 16.40 59,759 0.95 5.89
11/30/96 11.02 0.59 0.54 1.13 (0.75) -- 11.40 10.94 68,221 0.89 5.44
5/31/97# 11.40 0.26 (0.09) 0.17 (0.75) (0.04) 10.78 1.55 76,535 0.86+ 4.75+
High-Yield Bond Portfolio
2/9/93-
11/30/93 10.00 0.76 0.36 1.12 -- -- 11.12 11.20 41,851 0.94+++ 9.43+++
11/30/94 11.12 1.20 (1.65) (0.45) (0.29) (0.06) 10.32 (4.26) 55,803 0.92++ 11.07++
11/30/95 10.32 1.11 0.12 1.23 (1.02) -- 10.53 12.64 82,174 0.80 10.80
11/30/96 10.53 0.98 0.48 1.46 (0.95) -- 11.04 14.86 113,229 0.77 9.41
5/31/97# 11.04 0.50 (0.02) 0.48 (0.74) -- 10.78 4.45 143,718 0.74+ 9.13+
Worldwide High Income Portfolio
10/28/94-
11/30/94 10.00 0.04 (0.09) (0.05) -- -- 9.95 (0.50) 10,478 1.60+++ 4.48+++
11/30/95 9.95 1.10 0.47 1.57 (0.10) -- 11.42 16.02 21,515 1.30 10.46
11/30/96 11.42 1.25 1.60 2.85 (0.87) (0.05) 13.35 26.87 49,204 1.18 10.45
5/31/97# 13.35 0.49 0.62 1.11 (0.90) (0.91) 12.65 9.42 92,559 1.14+ 8.15+
SunAmerica Balanced Portfolio
6/3/96-
11/30/96 10.00 0.10 1.03 1.13 -- -- 11.13 11.30 10,224 1.00+++ 1.92+++
5/31/97# 11.13 0.11 0.76 0.87 (0.04) (0.02) 11.94 7.85 25,183 1.00+ 1.98+
<CAPTION>
AVERAGE
COMMISSION
PERIOD PORTFOLIO PER
ENDED TURNOVER SHARE@
- ------------------------------------
<S> <C> <C>
Cash Management Portfolio
2/9/93-
11/30/93 --% $ NA
11/30/94 -- NA
11/30/95 -- NA
11/30/96 -- NA
5/31/97# -- NA
Corporate Bond Portfolio
7/1/93-
11/30/93 208 NA
11/30/94 419 NA
11/30/95 412 NA
11/30/96 338 NA
5/31/97# 34 NA
Global Bond Portfolio
7/1/93-
11/30/93 84 NA
11/30/94 347 NA
11/30/95 339 NA
11/30/96 223 NA
5/31/97# 181 NA
High-Yield Bond Portfolio
2/9/93-
11/30/93 229 NA
11/30/94 225 NA
11/30/95 174 NA
11/30/96 107 NA
5/31/97# 100 NA
Worldwide High Income Portfolio
10/28/94-
11/30/94 2 NA
11/30/95 176 NA
11/30/96 177 NA
5/31/97# 82 NA
SunAmerica Balanced Portfolio
6/3/96-
11/30/96 40 .0600
5/31/97# 76 .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 dividing the agency
commissions paid on equity securities trades by the number of shares
purchased or sold.
# Unaudited
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995, 1996 and May 31,
1997, 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 1997+ 1993 1994 1995 1996 1997+
----------------------------------------- --------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Cash Management Portfolio.......... 1.10% 0.78% 0.67% 0.62% 0.61% 2.14% 3.65% 5.32% 4.90% 5.02%
Corporate Bond Portfolio........... 1.81 1.09 0.97 0.97 0.87 3.05 5.06 5.92 6.11 7.04
Global Bond Portfolio.............. 1.81 1.06 0.95 0.89 0.86 3.10 5.29 5.89 5.44 4.75
High-Yield Bond Portfolio.......... 1.29 0.93 0.80 0.77 0.74 9.08 11.06 10.80 9.41 9.13
Worldwide High Income Portfolio.... -- 2.26 1.30 1.18 1.14 -- 3.82 10.46 10.45 8.15
SunAmerica Balanced Portfolio...... -- -- -- 1.43 1.00 -- -- -- 1.49 1.98
</TABLE>
See Notes to Financial Statements
---------------------
117
<PAGE> 119
- ---------------------
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS* -- (CONTINUED)
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIO OF
NET
NET INVEST-
REALIZED RATIO OF MENT
NET & TOTAL DIVIDENDS DIVIDENDS NET NET EXPENSES INCOME
ASSET NET UNREALIZED FROM DECLARED FROM NET ASSET ASSETS TO TO
VALUE INVEST- GAIN INVEST- FROM NET REALIZED VALUE END OF AVERAGE AVERAGE
PERIOD BEGINNING MENT (LOSS) ON MENT INVESTMENT GAIN ON END OF TOTAL PERIOD NET NET
ENDED OF PERIOD INCOME** INVESTMENTS OPERATIONS INCOME INVESTMENTS PERIOD RETURN*** (000'S) ASSETS ASSETS
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <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 (0.40)% $ 1,516 1.00%+++ 4.25%+++
11/30/95 9.96 0.34 2.23 2.57 (0.05) -- 12.48 25.89 32,429 0.98++ 3.08++
11/30/96 12.48 0.34 1.31 1.65 (0.19) (0.31) 13.63 13.75 70,021 0.84 2.74
5/31/97# 13.63 0.18 0.38 0.56 (0.23) (0.41) 13.55 4.29 81,815 0.80+ 2.78+
Asset Allocation Portfolio
7/1/93-
11/30/93 10.00 0.08 0.28 0.36 -- -- 10.36 3.60 35,590 0.99+++ 2.33+++
11/30/94 10.36 0.29 (0.25) 0.04 (0.05) (0.03) 10.32 0.30 106,856 0.94++ 2.71++
11/30/95 10.32 0.42 2.24 2.66 (0.20) (0.04) 12.74 26.10 199,836 0.81 3.62
11/30/96 12.74 0.48 2.00 2.48 (0.31) (0.39) 14.52 20.27 316,388 0.74 3.66
5/31/97# 14.52 0.22 1.39 1.61 (0.40) (0.91) 14.82 11.51 411,705 0.68+ 3.02+
Utility Portfolio
6/3/96-
11/30/96 10.00 0.24 0.51 0.75 -- -- 10.75 7.50 6,299 1.05+++ 4.41+++
5/31/97# 10.75 0.17 0.62 0.79 (0.09) (0.02) 11.43 7.36 14,041 1.05+++ 3.19+++
Growth-Income Portfolio
2/9/93-
11/30/93 10.00 0.12 0.49 0.61 -- -- 10.61 6.10 45,080 0.82+++ 1.59+++
11/30/94 10.61 0.13 (0.36) (0.23) (0.04) (0.01) 10.33 (2.20) 84,899 0.81++ 1.26++
11/30/95 10.33 0.17 3.31 3.48 (0.10) -- 13.71 33.89 171,281 0.77 1.42
11/30/96 13.71 0.18 3.48 3.66 (0.12) (0.43) 16.82 27.41 325,463 0.72 1.21
5/31/97# 16.82 0.08 2.26 2.34 (0.13) (0.73) 18.30 14.36 450,118 0.67+ 0.98+
Federated Value Portfolio
6/3/96-
11/30/96 10.00 0.07 1.01 1.08 -- -- 11.08 10.80 12,460 1.05+++ 1.26+++
5/31/97# 11.08 0.07 1.22 1.29 (0.03) -- 12.34 11.63 31,618 1.05+ 1.29+
Venture Value Portfolio
10/28/94-
11/30/94 10.00 0.03 (0.25) (0.22) -- -- 9.78 (2.20) 4,449 1.10+++ 3.93+++
11/30/95 9.78 0.17 3.55 3.72 (0.03) -- 13.47 38.17 154,908 1.00++ 1.43++
11/30/96 13.47 0.18 3.46 3.64 (0.09) (0.12) 16.90 27.44 516,413 0.85 1.21
5/31/97# 16.90 0.09 1.99 2.08 (0.09) (0.26) 18.63 12.47 771,106 0.79+ 1.07+
<CAPTION>
AVERAGE
COMMISSION
PERIOD PORTFOLIO PER
ENDED TURNOVER SHARE@
- ----------------------------------
<S> <C> <C>
Balanced/Phoenix Investment Counsel Portfolio
10/28/94-
11/30/94 10% $ NA
11/30/95 153 NA
11/30/96 194 .0589
5/31/97# 149 .0544
Asset Allocation Portfolio
7/1/93-
11/30/93 71 NA
11/30/94 152 NA
11/30/95 207 NA
11/30/96 200 .0587
5/31/97# 90 .0589
Utility Portfolio
6/3/96-
11/30/96 24 .0439
5/31/97# 20 .0371
Growth-Income Portfolio
2/9/93-
11/30/93 27 NA
11/30/94 59 NA
11/30/95 59 NA
11/30/96 82 .0597
5/31/97# 24 .0554
Federated Value Portfolio
6/3/96-
11/30/96 30 .0520
5/31/97# 32 .0477
Venture Value Portfolio
10/28/94-
11/30/94 -- NA
11/30/95 18 NA
11/30/96 22 .0598
5/31/97# 9 .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 dividing the agency
commissions paid on equity securities trades by the number of shares
purchased or sold.
# Unaudited
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995, 1996 and May 31,
1997, 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 (loss) to average net
assets would have been as follows:
<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME (LOSS)
----------------------------------------- --------------------------------------------
1993 1994 1995 1996 1997+ 1993 1994 1995 1996 1997+
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
----------------------------------------- --------------------------------------------
Balanced/Phoenix Investment Counsel
Portfolio........................ --% 6.82% 1.11% 0.84% 0.80% --% (1.57)% 2.95% 2.74% 2.78%
Asset Allocation Portfolio......... 1.67 0.94 0.81 0.74 0.68 1.65 2.71 3.62 3.66 3.02
Utility Portfolio.................. -- -- -- 1.93 1.27 -- -- -- 3.53 2.97
Growth-Income Portfolio............ 1.40 0.89 0.77 0.72 0.67 1.01 1.18 1.42 1.21 0.98
Federated Value Portfolio.......... -- -- -- 1.57 1.05 -- -- -- 0.74 1.29
Venture Value Portfolio............ -- 3.89 1.02 0.85 0.79 -- 1.14 1.41 1.21 1.07
</TABLE>
See Notes to Financial Statements
- ---------------------
118
<PAGE> 120
- ---------------------
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS* -- (CONTINUED)
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIO OF
NET NET
REALIZED RATIO OF INVESTMENT
NET NET & TOTAL DIVIDENDS DIVIDENDS NET NET EXPENSES INCOME
ASSET INVEST- UNREALIZED FROM DECLARED FROM NET ASSET ASSETS TO TO
VALUE MENT GAIN INVEST- FROM NET REALIZED VALUE END OF AVERAGE AVERAGE
PERIOD BEGINNING INCOME (LOSS) ON MENT INVESTMENT GAIN ON END OF TOTAL PERIOD NET NET
ENDED OF PERIOD (LOSS)** INVESTMENTS OPERATIONS INCOME INVESTMENTS PERIOD RETURN*** (000'S) ASSETS ASSETS
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <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 9.20% $ 23,256 0.82%+++ 0.61%+++
11/30/94 10.92 0.04 (0.14) (0.10) (0.01) (0.17) 10.64 (0.93) 53,213 0.82++ 0.37++
11/30/95 10.64 0.07 5.08 5.15 (0.03) (0.13) 15.63 48.91 167,870 0.79 0.51
11/30/96 15.63 0.08 4.07 4.15 (0.04) (1.01) 18.73 28.05 381,367 0.71 0.51
5/31/97# 18.73 0.05 2.36 2.41 (0.05) (1.04) 20.05 13.58 505,829 0.66+ 0.49+
Growth/Phoenix Investment Counsel Portfolio
2/9/93-
11/30/93 10.00 0.17 0.61 0.78 -- -- 10.78 7.80 65,032 0.82+++ 2.20+++
11/30/94 10.78 0.16 (0.87) (0.71) (0.06) -- 10.01 (6.64) 104,194 0.81++ 1.52++
11/30/95 10.01 0.12 3.14 3.26 (0.13) -- 13.14 32.92 149,910 0.76 1.01
11/30/96 13.14 0.11 2.16 2.27 (0.11) (0.91) 14.39 18.40 186,368 0.74 0.82
5/31/97# 14.39 0.08 0.83 0.91 (0.10) (1.26) 13.94 6.90 195,140 0.72+ 1.17+
Putnam Growth Portfolio
2/9/93-
11/30/93 10.00 0.02 0.02 0.04 -- -- 10.04 0.40 42,911 0.97+++ 0.32+++
11/30/94 10.04 0.03 (0.01) 0.02 (0.01) -- 10.05 0.19 75,342 0.96++ 0.31++
11/30/95 10.05 (0.01) 3.09 3.08 (0.03) -- 13.10 30.66 115,276 0.93 (0.05)
11/30/96 13.10 -- 2.61 2.61 -- -- 15.71 19.92 160,073 0.90 (0.02)
5/31/97# 15.71 0.01 1.12 1.13 -- (0.52) 16.32 7.39 179,472 0.88+ 0.14+
Aggressive Growth Portfolio
6/3/96-
11/30/96 10.00 0.02 0.34 0.36 -- -- 10.36 3.60 35,124 1.05+++ 0.46+++
5/31/97# 10.36 -- (0.26) (0.26) (0.01) -- 10.09 (2.52) 63,814 0.91+ 0.02+
Global Equities Portfolio
2/9/93-
11/30/93 10.00 0.03 0.96 0.99 -- -- 10.99 9.90 43,737 1.50+++ 0.38+++
11/30/94 10.99 0.05 0.71 0.76 (0.01) (0.07) 11.67 6.87 136,758 1.28 0.42
11/30/95 11.67 0.12 1.64 1.76 (0.08) (0.29) 13.06 15.58 165,752 1.14 1.02
11/30/96 13.06 0.14 2.19 2.33 (0.14) (0.33) 14.92 18.21 246,482 1.03 1.04
5/31/97# 14.92 0.06 1.32 1.38 (0.13) (0.69) 15.48 9.75 311,646 0.95+ 0.84+
International Diversified Equities Portfolio
10/28/94-
11/30/94 10.00 0.01 (0.23) (0.22) -- -- 9.78 (2.20) 12,438 1.70+++ 1.60+++
11/30/95 9.78 0.07 0.38 0.45 (0.08) -- 10.15 4.63 48,961 1.70++ 0.76++
11/30/96 10.15 0.05 1.43 1.48 (0.26) -- 11.37 14.85 157,008 1.59 0.47
5/31/97# 11.37 0.05 0.49 0.54 (0.31) (0.10) 11.50 5.02 219,359 1.37+ 0.94+
<CAPTION>
AVERAGE
COMMISSION
PERIOD PORTFOLIO PER
ENDED TURNOVER SHARE@
<S> <C> <C>
---------
<S> <C> <C>
Alliance Growth Portfolio
2/9/93-
11/30/93 73% $ NA
11/30/94 146 NA
11/30/95 138 NA
11/30/96 121 .0649
5/31/97# 57 .0613
Growth/Phoenix Investment Counsel Portfolio
2/9/93-
11/30/93 165 NA
11/30/94 211 NA
11/30/95 229 NA
11/30/96 164 .0534
5/31/97# 115 .0550
Putnam Growth Portfolio
2/9/93-
11/30/93 40 NA
11/30/94 54 NA
11/30/95 52 NA
11/30/96 63 .0443
5/31/97# 92 .0234
Aggressive Growth Portfolio
6/3/96-
11/30/96 47 .0600
5/31/97# 114 .0600
Global Equities Portfolio
2/9/93-
11/30/93 58 NA
11/30/94 67 NA
11/30/95 106 NA
11/30/96 70 .0256
5/31/97# 47 .0245
International Diversified Equities Portfolio
10/28/94-
11/30/94 -- NA
11/30/95 52 NA
11/30/96 53 .0023
5/31/97# 21 .0004
</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 dividing the agency
commissions paid on equity securities trades by the number of shares
purchased or sold.
# Unaudited
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995, 1996 and May 31,
1997, 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 (loss) to average net
assets would have been as follows:
<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME (LOSS)
----------------------------------------- ---------------------------------------------
1993 1994 1995 1996 1997+ 1993 1994 1995 1996 1997+
----------------------------------------- ---------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Alliance Growth Portfolio......... 1.56% 0.96% 0.79% 0.71% 0.66% (0.13)% 0.23% 0.51% 0.51% 0.49%
Growth/Phoenix Investment Counsel
Portfolio....................... 1.28 0.87 0.76 0.74 0.72 1.74 1.46 1.01 0.82 1.17
Putnam Growth Portfolio........... 1.46 1.05 0.93 0.90 0.88 (0.17) 0.22 (0.05) (0.02) 0.14
Aggressive Growth Portfolio....... -- -- -- 1.09 0.91 -- -- -- 0.42 0.02
Global Equities Portfolio......... 2.52 1.28 1.14 1.03 0.95 (0.64) 0.42 1.02 1.04 0.84
International Diversified Equities
Portfolio....................... -- 3.50 2.09 1.59 1.37 -- (0.20) 0.37 0.47 0.94
</TABLE>
See Notes to Financial Statements
---------------------
119
<PAGE> 121
- ---------------------
SUNAMERICA SERIES TRUST
SHAREHOLDER INFORMATION (UNAUDITED)
SUPPLEMENTAL PROXY INFORMATION: A Special Meeting of the Shareholders of the
SunAmerica Series Trust was held on March 21, 1997. Each of the Portfolios voted
in favor of adopting the following proposals, therefore, the results are
aggregated for the Trust unless otherwise specified.
1. To elect a slate of five members to the Board of Trustees to hold office
until their successors are duly elected and qualified.
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
----------- ----------- -----------
<S> <C> <C> <C>
Richards D. Barger............................. 199,847,768 -- 3,702,539
James K. Hunt.................................. 199,932,366 -- 3,617,931
Norman J. Metcalfe............................. 199,955,445 -- 3,594,872
Allan L. Sher.................................. 199,933,178 -- 3,617,129
William M. Wardlaw............................. 199,955,291 -- 3,595,016
</TABLE>
2. To approve certain changes to its fundamental investment restrictions:
(a.) Eliminating the Trusts' Fundamental Investment Restriction relating to
Investments in Illiquid Securities. (Applicable to the Cash Management
Portfolio only)
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
- ----------- ----------- -----------
<S> <C> <C>
6,711,233 565,403 1,110,766
</TABLE>
(b.) Eliminating the Trusts' Fundamental Investment Restrictions relating to
Pledging their Assets.
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
- ----------- ----------- -----------
<S> <C> <C>
173,288,805 15,375,969 14,885,533
</TABLE>
(c.) Eliminating the Trusts' Fundamental Investment Restrictions relating to
Options Transactions. (Applicable to the Cash Management Portfolio only)
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
- ----------- ----------- -----------
<S> <C> <C>
6,787,061 471,609 1,128,732
</TABLE>
(d.) Eliminating the Trusts' Fundamental Investment Restrictions relating to
Investments in Securities of other Investment Companies.
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
- ----------- ----------- -----------
<S> <C> <C>
178,303,472 11,062,477 14,174,358
</TABLE>
(e.) Eliminating the Trusts' Fundamental Investment Restrictions relating to
Investments in Companies for the purpose of Exercising Control. (Not
applicable to the Cash Management Portfolio)
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
- ----------- ----------- -----------
<S> <C> <C>
168,772,036 12,713,074 13,677,795
</TABLE>
- ---------------------
120
<PAGE> 122
- ---------------------
(f.) Eliminating the Trusts' Fundamental Investment Restrictions relating to
Underwriting of Securities Issued by Others. (Not applicable to the Cash
Management Portfolio)
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
- ----------- ----------- -----------
<S> <C> <C>
167,615,591 13,544,337 14,002,977
</TABLE>
(g.) Eliminating the Trusts' Fundamental Investment Restrictions relating to
Short Sales. (Not applicable to the Cash Management Portfolio)
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
- ----------- ----------- -----------
<S> <C> <C>
165,924,126 15,197,388 14,041,391
</TABLE>
(h.) Amending the Trusts' Fundamental Investment Restrictions relating to
Making Loans. (Not applicable to the Cash Management Portfolio)
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
- ----------- ----------- -----------
<S> <C> <C>
167,047,458 14,360,526 13,754,921
</TABLE>
(i.) Amending the Trusts' Fundamental Investment Restrictions relating to
Borrowing Money. (Not applicable to the Cash Management Portfolio)
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
- ----------- ----------- -----------
<S> <C> <C>
164,578,822 16,833,862 13,750,221
</TABLE>
3. To approve or disapprove (a) a new subadvisory agreement between
SunAmerica Asset Management Corp. ("SAAMCo") and Putnam Investment
Management Inc. ("Putnam"), the proposed new subadviser for the Provident
Growth Portfolio, and (b) an amendment to the advisory agreement (the
"Advisory Agreement") between the Trust and SAAMCo in order to revise the
breakpoints in the fees the Portfolio pays to SAAMCo pursuant to the
Advisory Agreement. (Applicable to the Provident Growth Portfolio)
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
- ----------- ----------- -----------
<S> <C> <C>
9,355,724 492,397 791,082
</TABLE>
4. To approve or disapprove an amendment to the subadvisory agreement between
SAAMCo and Davis Selected Advisers, L.P. ("Davis"), the Portfolio's
subadviser, pursuant to which Davis may delegate any of its
responsibilities under the Davis Subadvisory Agreement to one of its
affiliates, including Davis Selected Advisers-NY, Inc. (Applicable to the
Venture Value Portfolio)
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
- ----------- ----------- -----------
<S> <C> <C>
30,120,771 1,426,102 2,612,842
</TABLE>
---------------------
121
<PAGE> 123
- ---------------------
5. To approve or disapprove a proposal to permit SAAMCo to enter into new or
amended contracts with subadvisers without obtaining shareholder approval.
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
- ----------- ----------- -----------
<S> <C> <C>
173,009,025 16,368,609 14,172,673
</TABLE>
6. To ratify the selection of independent accountants for its current fiscal
year.
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
- ----------- ----------- -----------
<S> <C> <C>
187,859,770 3,088,213 12,598,745
</TABLE>
- ---------------------
122
<PAGE> 124
THIS REPORT IS FOR THE GENERAL INFORMATION OF CONTRACT OWNERS OF THE POLARIS OR
POLARIS(II) VARIABLE ANNUITY. IT IS NOT AUTHORIZED FOR DISTRIBUTION TO
PROSPECTIVE PURCHASERS UNLESS ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
R-1342 (7/97)
