SUNAMERICA SERIES TRUST, 485BPOS, 1997-05-07

SUNAMERICA SERIES TRUST
485BPOS, 1997-05-07

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<PAGE> 1

As filed with the Securities and Exchange Commission on May 7, 1997

File Nos. 33-52742; 811-7238
================================================================================

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933 _

Pre-Effective Amendment No. _
Post-Effective Amendment No. 12 X

and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY
ACT OF 1940 _

Amendment No. 14 X

(Check appropriate box or boxes)

SUNAMERICA SERIES TRUST
(Exact Name of Registrant as Specified in Charter)

1 SunAmerica Center
Los Angeles, CA 90067-6022

(Address of Principal Executive Office)(Zip Code)

Registrant's telephone number, including area code: (800) 858-8850

Robert M. Zakem
Senior Vice President and General Counsel
SunAmerica Asset Management Corp.
The SunAmerica Center
733 Third Avenue - 3rd Floor
New York, NY 10017-3204
(Name and Address of Agent for Service)

Copy to:

Susan L. Harris, Esq.
SunAmerica Inc.

1 SunAmerica Center

Los Angeles, CA 90067-6022

It is proposed that this filing will become effective (check appropriate box)
immediately upon filing pursuant to paragraph (b)
- ---
X on May 14, 1997 pursuant to paragraph (b)
- ---

___ 60 days after filing pursuant to paragraph (a)
___ on (date) pursuant to paragraph (a) of Rule 485

--------------------

The Registrant has elected to register an indefinite number of shares
of beneficial interest, par value $.01 per share, under the Securities Act of
1933 pursuant to Rule 24f-2 under the Investment Company Act of 1940, as
amended. The Rule 24f-2 Notice for the Registrant's fiscal year ended November
30, 1996 was filed on January 24, 1997.

================================================================================
<PAGE> 2

SUNAMERICA SERIES TRUST

CROSS REFERENCE SHEET
Pursuant to Rule 481(b)
Under the Securities Act of 1933

<TABLE>
<CAPTION>
PART A
Item No. Registration Statement Caption Caption in Prospectus
<S> <C> <C>
1. Cover Page Cover Page

2. Synopsis - Fee Table *

3. Financial Highlights Financial Highlights

4. General Description of Registrant The Trust, Its Investment
Objectives and Policies;
Description of Securities
and Investment Techniques

5. Management of the Fund Management

6. Capital Stock and Other Securities Dividends, Distributions and
Federal Taxes; Shareholder
Voting Rights; Shareholder
Inquiries

7. Purchase of Securities Being Offered Purchases and Redemptions

8. Redemption or Repurchase Purchases and Redemptions

9. Pending Legal Proceedings *

PART B Caption in Statement
Item No. Registration Statement Caption of Additional Information

10. Cover Page Cover Page

11. Table of Contents Table of Contents

12. General Information and History The Trust

13. Investment Objectives and Policies Investment Objectives and
Policies; Investment
Restrictions

14. Management of the Fund Trust Officers and Trustees

15. Contact Persons and Principal Holders The Trust
of Securities

16. Investment Advisory and Other Services Investment Advisory and
Management Agreement;
Subadvisory Agreements;
General Information

17. Brokerage Allocation and Other Practices Execution of Portfolio
Transactions

18. Capital Stock and Other Securities *

19. Purchase, Redemption and Pricing of Price of Shares
Securities Being Offered
</TABLE>
<PAGE> 3
<TABLE>
<S> <C> <C>
20. Tax Status Dividends, Distributions and Federal Taxes

21. Underwriters *

22. Calculation of Performance Data *

23. Financial Statements Financial Statements
</TABLE>

* Omitted from the Prospectus or Statement of Additional Information because
the item is not applicable.

PART C

The information required to be included in Part C is set forth under
the appropriate item, so numbered in Part C of this Registration Statement.
<PAGE> 4

PROSPECTUS -- MAY 14, 1997

================================================================================

SUNAMERICA SERIES TRUST

================================================================================

P.O. BOX 54299
LOS ANGELES, CALIFORNIA 90054-0299

SunAmerica Series Trust ("Trust") is an open-end management investment company.
The Trust consists of 21 Portfolios, each of which has its own investment
objectives and policies.

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 HIGH-YIELD BOND AND WORLDWIDE HIGH INCOME PORTFOLIOS INVEST PREDOMINANTLY
IN, AND THE CORPORATE BOND, BALANCED/PHOENIX INVESTMENT COUNSEL, ASSET
ALLOCATION, REAL ESTATE, INTERNATIONAL GROWTH AND INCOME AND EMERGING MARKETS
PORTFOLIOS MAY INVEST IN, LOWER-RATED AND UNRATED BONDS (ALSO KNOWN AS "JUNK
BONDS"). BONDS OF THIS TYPE ARE TYPICALLY SUBJECT TO GREATER MARKET FLUCTUATIONS
AND RISK OF LOSS OF INCOME AND PRINCIPAL DUE TO DEFAULT BY THE ISSUER THAN ARE
INVESTMENTS IN LOWER-YIELDING, HIGHER-RATED BONDS. SEE "DESCRIPTION OF
SECURITIES AND INVESTMENT TECHNIQUES -- RISK FACTORS RELATING TO HIGH-YIELD
BONDS" FOR A DISCUSSION OF THE RISKS ASSOCIATED WITH HIGH-YIELD, HIGH-RISK
SECURITIES.

(Cover continued on next page)

------------------------

INVESTMENTS IN A PORTFOLIO ARE NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT OR ANY OTHER ENTITY OR PERSON.

This Prospectus sets forth concisely the information a prospective investor
should know before investing in
the Trust. Please read it carefully and retain it for future reference. A
Statement of Additional Information has been filed with the Securities and
Exchange Commission and is incorporated herein by reference. Further information
about the performance of the Portfolios is contained in the Trust's Annual
Report to Shareholders. The Annual Report to Shareholders and the Statement of
Additional Information may be obtained upon request and without charge by
writing to the Trust at the above address or by calling 1-800-445-SUN2.

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.

<PAGE> 5

(Cover continued from previous page)

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 each seeks long-term growth of capital by investing primarily in
common stocks or securities with common stock characteristics which the Adviser
believes have the potential for appreciation.

The REAL ESTATE PORTFOLIO seeks to achieve total return through a combination of
growth and income by investing primarily in securities of companies principally
engaged in or related to the real estate industry or which own significant real
estate assets or which primarily invest in real estate financial instruments.

The AGGRESSIVE GROWTH PORTFOLIO seeks capital appreciation by investing
primarily in equity securities of small capitalization growth companies.

The INTERNATIONAL GROWTH AND INCOME PORTFOLIO seeks growth of capital with
current income as a secondary objective by investing primarily in common stocks
traded on markets outside the United States.

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.

The INTERNATIONAL DIVERSIFIED EQUITIES PORTFOLIO seeks long-term capital
appreciation by investing in accordance with country weightings determined by
its subadviser in common stocks of foreign issuers which, in the aggregate,
replicate broad country indices.

The EMERGING MARKETS PORTFOLIO seeks long-term capital appreciation by investing
mainly in the common stocks and other equity securities of companies that its
subadviser believes have above-average growth prospects primarily in emerging
markets outside the United States.

Shares of the Trust are issued and redeemed only in connection with investments
in and payments under variable annuity contracts and may be sold to fund
variable life contracts issued in the future. The contracts involve fees and
expenses not described in this Prospectus. Certain Portfolios may not be
available in connection with a particular contract. See the applicable contract
prospectus for information regarding contract fees and expenses and any
restrictions or limitations.
<PAGE> 6

=========================================================
TABLE OF CONTENTS
=========================================================

<TABLE>
<CAPTION>
TOPIC PAGE
----- ----
<S> <C> <C>
FINANCIAL HIGHLIGHTS..................... 4
THE TRUST, ITS INVESTMENT OBJECTIVES AND
POLICIES............................... 7
Cash Management Portfolio.......... 8
Corporate Bond Portfolio........... 8
Global Bond Portfolio.............. 9
High-Yield Bond Portfolio.......... 10
Worldwide High Income Portfolio.... 11
SunAmerica Balanced Portfolio...... 12
Balanced/Phoenix Investment Counsel
Portfolio.......................... 13
Asset Allocation Portfolio......... 14
Utility Portfolio.................. 14
Growth-Income Portfolio............ 15
Federated Value Portfolio.......... 15
Venture Value Portfolio............ 16
Alliance Growth, Growth/Phoenix
Investment Counsel and Putnam
Growth Portfolios.................. 17
Real Estate Portfolio.............. 17
Aggressive Growth Portfolio........ 18
International Growth and Income
Portfolio.......................... 18
Global Equities Portfolio.......... 19
International Diversified Equities
Portfolio.......................... 19
Emerging Markets Portfolio......... 20
DESCRIPTION OF SECURITIES AND INVESTMENT
TECHNIQUES............................. 21
MANAGEMENT............................... 31
PORTFOLIO TURNOVER AND BROKERAGE.........
37
DIVIDENDS, DISTRIBUTIONS AND FEDERAL
TAXES.................................. 37
PRICE OF SHARES.......................... 39
PURCHASES AND REDEMPTIONS................ 39
SHAREHOLDER VOTING RIGHTS................ 39
INDEPENDENT ACCOUNTANTS.................. 40
SHAREHOLDER INQUIRIES.................... 40
FINANCIAL INFORMATION.................... 40
</TABLE>

3
<PAGE> 7

================================================================================
FINANCIAL HIGHLIGHTS
================================================================================

The following Financial Highlights for the Portfolios and periods set forth
below have been audited by Price Waterhouse LLP, the Trust's independent
accountants, whose report on the financial statements containing such
information is included in the Trust's Annual Report to Shareholders. These
Financial Highlights* should be read in conjunction with the financial
statements and notes thereto, which are included in the Statement of Additional
Information.

<TABLE>
<CAPTION>
DIVIDENDS DIVIDENDS
NET TOTAL DECLARED FROM NET NET
NET ASSET NET REALIZED FROM FROM NET REALIZED ASSET
VALUE INVEST- & UNREALIZED INVEST- INVEST- GAIN ON VALUE
BEGINNING MENT GAIN (LOSS) ON MENT MENT INVEST- END OF
PERIOD ENDED OF PERIOD INCOME** INVESTMENTS OPERATIONS INCOME MENTS PERIOD
<S> <C> <C> <C> <C> <C> <C> <C>
========================================================================================================================
Cash Management Portfolio
2/9/93-11/30/93 $ 10.00 $ 0.19 $ 0.01 $ 0.20 $ -- $ -- $ 10.20
11/30/94 10.20 0.38 (0.02) 0.36 (0.09) -- 10.47
11/30/95 10.47 0.56 0.01 0.57 (0.34) -- 10.70
11/30/96 10.70 0.53 (0.02) 0.51 (0.45) -- 10.76
- ------------------------------------------------------------------------------------------------------------------------
Corporate Bond Portfolio
7/1/93-11/30/93 10.00 0.14 0.05 0.19 -- -- 10.19
11/30/94 10.19 0.52 (0.87) (0.35) (0.05) (0.04) 9.75
11/30/95 9.75 0.60 1.00 1.60 (0.53) -- 10.82
11/30/96 10.82 0.65 0.03 0.68 (0.41) -- 11.09
- ------------------------------------------------------------------------------------------------------------------------
Global Bond Portfolio
7/1/93-11/30/93 10.00 0.13 0.17 0.30 -- -- 10.30
11/30/94 10.30 0.53 (0.86) (0.33) (0.09) (0.05) 9.83
11/30/95 9.83 0.60 0.97 1.57 (0.38) -- 11.02
11/30/96 11.02 0.59 0.54 1.13 (0.75) -- 11.40
- ------------------------------------------------------------------------------------------------------------------------
High-Yield Bond Portfolio
2/9/93-11/30/93 10.00 0.76 0.36 1.12 -- -- 11.12
11/30/94 11.12 1.20 (1.65) (0.45) (0.29) (0.06) 10.32
11/30/95 10.32 1.11 0.12 1.23 (1.02) -- 10.53
11/30/96 10.53 0.98 0.48 1.46 (0.95) -- 11.04
- ------------------------------------------------------------------------------------------------------------------------
Worldwide High Income Portfolio
10/28/94-11/30/94 10.00 0.04 (0.09) (0.05) -- -- 9.95
11/30/95 9.95 1.10 0.47 1.57 (0.10) -- 11.42
11/30/96 11.42 1.25 1.60 2.85 (0.87) (0.05) 13.35
- ------------------------------------------------------------------------------------------------------------------------
SunAmerica Balanced Portfolio
6/3/96-11/30/96 10.00 0.10 1.03 1.13 -- -- 11.13
========================================================================================================================

NET RATIO OF NET
ASSETS RATIO OF INVESTMENT
END OF EXPENSES INCOME AVERAGE
TOTAL PERIOD TO AVERAGE TO AVERAGE PORTFOLIO COMMISSION
PERIOD ENDED RETURN*** (000'S) NET ASSETS NET ASSETS TURNOVER PER SHARE@
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------

2/9/93-11/30/93 2.00% $ 24,603 0.71%+++ 2.53%+++ --% N/A
11/30/94 3.51 89,098 0.70++ 3.73++ -- N/A
11/30/95 5.59 90,731 0.67 5.32 -- N/A
11/30/96 4.92 91,247 0.62 4.90 -- N/A
- ------------------------------------------------------------------------------------------------------------------------

7/1/93-11/30/93 1.90 11,667 0.94+++ 3.92+++ 208 N/A
11/30/94 (3.41) 15,869 0.94++ 5.21++ 419 N/A
11/30/95 17.01 29,475 0.96++ 5.93++ 412 N/A
11/30/96 6.51 37,207 0.97 6.11 338 N/A
- ------------------------------------------------------------------------------------------------------------------------

7/1/93-11/30/93 3.00 25,010 1.35+++ 3.56+++ 84 N/A
11/30/94 (3.18) 44,543 1.06 5.29 347 N/A
11/30/95 16.40 59,759 0.95 5.89 339 N/A
11/30/96 10.94 68,221 0.89 5.44 223 N/A
- ------------------------------------------------------------------------------------------------------------------------

2/9/93-11/30/93 11.20 41,851 0.94+++ 9.43+++ 229 N/A
11/30/94 (4.26) 55,803 0.92++ 11.07++ 225 N/A
11/30/95 12.64 82,174 0.80 10.80 174 N/A
11/30/96 14.86 113,229 0.77 9.41 107 N/A
- ------------------------------------------------------------------------------------------------------------------------

10/28/94-11/30/94 (0.50) 10,478 1.60+++ 4.48+++ 2 N/A
11/30/95 16.02 21,515 1.30 10.46 176 N/A
11/30/96 26.87 49,204 1.18 10.45 177 N/A
- ------------------------------------------------------------------------------------------------------------------------

6/3/96-11/30/96 11.30 10,224 1.00+++ 1.92+++ 40 0.0600
========================================================================================================================
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of Anchor National Life Insurance Company and First
SunAmerica Life Insurance Company. If such expenses had been included, total return would have been lower for each period
presented.
@ The average commission per share is derived by taking the agency commissions paid on equity securities trades and dividing
by the number of shares purchased or sold.
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995 and 1996, the investment adviser waived a portion of or all fees
and assumed a portion of or all expenses for the Portfolios. If all fees and expenses had been incurred by the Portfolios,
the ratio of expenses to average net assets and the ratio of net investment income (loss) to average net assets would have
been as follows:
</TABLE>

<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME
------------------------------- ----------------------------------
---------------------- ------------------------
1993 1994 1995 1996 1993 1994 1995 1996
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------
Cash Management Portfolio........................ 1.10% 0.78% 0.67% 0.62% 2.14% 3.65% 5.32% 4.90%
Corporate Bond Portfolio......................... 1.81 1.09 0.97 0.97 3.05 5.06 5.92 6.11
Global Bond Portfolio............................ 1.81 1.06 0.95 0.89 3.10 5.29 5.89 5.44
High-Yield Bond Portfolio........................ 1.29 0.93 0.80 0.77 9.08 11.06 10.80 9.41
Worldwide High Income Portfolio.................. -- 2.26 1.30 1.18 -- 3.82 10.46 10.45
SunAmerica Balanced Portfolio.................... -- -- -- 1.43 -- -- -- 1.49
------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
DEBT AVERAGE AVERAGE AVERAGE
YEAR OUTSTANDING DEBT SHARES DEBT
ENDED AT YEAR END OUTSTANDING OUTSTANDING PER SHARE
<S> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------------
Worldwide High Income Portfolio.............. 11/30/96 -- $ 120,656 3,085,308 $ 0.0391
==========================================================================================================================
</TABLE>

4
<PAGE> 8

<TABLE>
<CAPTION>
DIVIDENDS DIVIDENDS
NET NET TOTAL DECLARED FROM NET NET
NET ASSET INVEST- REALIZED FROM FROM NET REALIZED ASSET
VALUE MENT & UNREALIZED INVEST- INVEST- GAIN ON VALUE
BEGINNING INCOME GAIN (LOSS) ON MENT MENT INVEST- END OF
PERIOD ENDED OF PERIOD (LOSS)** INVESTMENTS OPERATIONS INCOME MENTS PERIOD
<S> <C> <C> <C> <C> <C> <C> <C>
========================================================================================================================

Balanced/Phoenix Investment Counsel Portfolio
10/28/94-11/30/94 $ 10.00 $ 0.04 $(0.08) $(0.04) $ -- $ -- $ 9.96
11/30/95 9.96 0.34 2.23 2.57 (0.05) -- 12.48
11/30/96 12.48 0.34 1.31 1.65 (0.19) (0.31) 13.63
- ------------------------------------------------------------------------------------------------------------------------

Asset Allocation Portfolio
7/1/93-11/30/93 10.00 0.08 0.28 0.36 -- -- 10.36
11/30/94 10.36 0.29 (0.25) 0.04 (0.05) (0.03) 10.32
11/30/95 10.32 0.42 2.24 2.66 (0.20) (0.04) 12.74
11/30/96 12.74 0.48 2.00 2.48 (0.31) (0.39) 14.52
- ------------------------------------------------------------------------------------------------------------------------

Utility Portfolio
6/3/96-11/30/96 10.00 0.24 0.51 0.75 -- -- 10.75
- ------------------------------------------------------------------------------------------------------------------------

Growth-Income Portfolio
2/9/93-11/30/93 10.00 0.12 0.49 0.61 -- -- 10.61
11/30/94 10.61 0.13 (0.36) (0.23) (0.04) (0.01) 10.33
11/30/95 10.33 0.17 3.31 3.48 (0.10) -- 13.71
11/30/96 13.71 0.18 3.48 3.66 (0.12) (0.43) 16.82
- ------------------------------------------------------------------------------------------------------------------------

Federated Value Portfolio
6/3/96-11/30/96 10.00 0.07 1.01 1.08 -- -- 11.08
- ------------------------------------------------------------------------------------------------------------------------

Venture Value Portfolio
10/28/94-11/30/94 10.00 0.03 (0.25) (0.22) -- -- 9.78
11/30/95 9.78 0.17 3.55 3.72 (0.03) -- 13.47
11/30/96 13.47 0.18 3.46 3.64 (0.09) (0.12) 16.90
========================================================================================================================

NET RATIO OF NET
ASSETS RATIO OF INVESTMENT
END OF EXPENSES INCOME AVERAGE
TOTAL PERIOD TO AVERAGE TO AVERAGE PORTFOLIO COMMISSION
PERIOD ENDED RETURN*** (000'S) NET ASSETS NET ASSETS TURNOVER PER SHARE@
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------

10/28/94-11/30/94 (0.40)% $ 1,516 1.00%+++ 4.25%+++ 10% N/A
11/30/95 25.89 32,429 0.98++ 3.08++ 153 N/A
11/30/96 13.75 70,021 0.84 2.74 194 0.0589
- ------------------------------------------------------------------------------------------------------------------------

7/1/93-11/30/93 3.60 35,590 0.99+++ 2.33+++ 71 N/A
11/30/94 0.30 106,856 0.94++ 2.71++ 152 N/A
11/30/95 26.10 199,836 0.81 3.62 207 N/A
11/30/96 20.27 316,388 0.74 3.66 200 0.0587
- ------------------------------------------------------------------------------------------------------------------------

6/3/96-11/30/96 7.50 6,299 1.05+++ 4.41+++ 24 0.0439
- ------------------------------------------------------------------------------------------------------------------------

2/9/93-11/30/93 6.10 45,080 0.82+++ 1.59+++ 27 N/A
11/30/94 (2.20) 84,899 0.81++ 1.26++ 59 N/A
11/30/95 33.89 171,281 0.77 1.42 59 N/A
11/30/96 27.41 325,463 0.72 1.21 82 0.0597
- ------------------------------------------------------------------------------------------------------------------------

6/3/96-11/30/96 10.80 12,460 1.05+++ 1.26+++ 30 0.0520
- ------------------------------------------------------------------------------------------------------------------------

10/28/94-11/30/94 (2.20) 4,449 1.10+++ 3.93+++ -- N/A
11/30/95 38.17 154,908 1.00++ 1.43++ 18 N/A
11/30/96 27.44 516,413 0.85 1.21 22 0.0598
========================================================================================================================
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of Anchor National Life Insurance Company and First
SunAmerica Life Insurance Company. If such expenses had been included, total return would have been lower for each period
presented.
@ The average commission per share is derived by taking the agency commissions paid on equity securities trades and dividing
by the number of shares purchased or sold.
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995 and 1996, the investment adviser waived a portion of or all fees
and assumed a portion of or all expenses for the Portfolios. If all fees and expenses had been incurred by the Portfolios,
the ratio of expenses to average net assets and the ratio of net investment income (loss) to average net assets would have
been as follows:
</TABLE>

<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME (LOSS)
------------------------------- ----------------------------------
1993 1994 1995 1996 1993 1994 1995 1996
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------
Balanced/Phoenix Investment Counsel Portfolio..... --% 6.82% 1.11% 0.84% --% (1.57)% 2.95% 2.74%
Asset Allocation Portfolio........................ 1.67 0.94 0.81 0.74 1.65 2.71 3.62 3.66
Utility Portfolio................................. -- -- -- 1.93 -- -- -- 3.53
Growth-Income Portfolio........................... 1.40 0.89 0.77 0.72 1.01 1.18 1.42 1.21
Federated Value Portfolio......................... -- -- -- 1.57 -- -- -- 0.74
Venture Value Portfolio........................... -- 3.89 1.02 0.85 -- 1.14 1.41 1.21
==============================================================================================================================
</TABLE>

5
<PAGE> 9

<TABLE>
<CAPTION>
DIVIDENDS DIVIDENDS
NET NET TOTAL DECLARED FROM NET
NET ASSET INVEST- REALIZED FROM FROM NET REALIZED NET ASSET
VALUE MENT & UNREALIZED INVEST- INVEST- GAIN ON VALUE
BEGINNING INCOME GAIN (LOSS) ON MENT MENT INVEST- END OF
PERIOD ENDED OF PERIOD (LOSS)** INVESTMENTS OPERATIONS INCOME MENTS PERIOD
<S> <C> <C> <C> <C> <C> <C> <C>
========================================================================================================================

Alliance Growth Portfolio
2/9/93-11/30/93 $ 10.00 $ 0.05 $ 0.87 $ 0.92 $ -- $ -- $ 10.92
11/30/94 10.92 0.04 (0.14) (0.10) (0.01) (0.17) 10.64
11/30/95 10.64 0.07 5.08 5.15 (0.03) (0.13) 15.63
11/30/96 15.63 0.08 4.07 4.15 (0.04) (1.01) 18.73
- ------------------------------------------------------------------------------------------------------------------------

Growth/Phoenix Investment Counsel Portfolio
2/9/93-11/30/93 10.00 0.17 0.61 0.78 -- -- 10.78
11/30/94 10.78 0.16 (0.87) (0.71) (0.06) -- 10.01
11/30/95 10.01 0.12 3.14 3.26 (0.13) -- 13.14
11/30/96 13.14 0.11 2.16 2.27 (0.11) (0.91) 14.39
- ------------------------------------------------------------------------------------------------------------------------

Provident Growth Portfolio****
2/9/93-11/30/93 10.00 0.02 0.02 0.04 -- -- 10.04
11/30/94 10.04 0.03 (0.01) 0.02 (0.01) -- 10.05
11/30/95 10.05 (0.01) 3.09 3.08 (0.03) -- 13.10
11/30/96 13.10 -- 2.61 2.61 -- -- 15.71
- ------------------------------------------------------------------------------------------------------------------------

Aggressive Growth Portfolio
6/3/96-11/30/96 10.00 0.02 0.34 0.36 -- -- 10.36
- ------------------------------------------------------------------------------------------------------------------------

Global Equities Portfolio
2/9/93-11/30/93 10.00 0.03 0.96 0.99 -- -- 10.99
11/30/94 10.99 0.05 0.71 0.76 (0.01) (0.07) 11.67
11/30/95 11.67 0.12 1.64 1.76 (0.08) (0.29) 13.06
11/30/96 13.06 0.14 2.19 2.33 (0.14) (0.33) 14.92
- ------------------------------------------------------------------------------------------------------------------------

International Diversified Equities Portfolio

10/28/94-11/30/94 10.00 0.01 (0.23) (0.22) -- -- 9.78
11/30/95 9.78 0.07 0.38 0.45 (0.08) -- 10.15
11/30/96 10.15 0.05 1.43 1.48 (0.26) -- 11.37
========================================================================================================================

NET RATIO OF NET
ASSETS RATIO OF INVESTMENT
END OF EXPENSES INCOME AVERAGE
TOTAL PERIOD TO AVERAGE TO AVERAGE PORTFOLIO COMMISSION
PERIOD ENDED RETURN*** (000'S) NET ASSETS NET ASSETS TURNOVER PER SHARE @
<S> <C> <C> <C> <C> <C> <C>
========================================================================================================================

2/9/93-11/30/93 9.20% $ 23,256 0.82%+++ 0.61%+++ 73% N/A
11/30/94 (0.93) 52,213 0.82++ 0.37++ 146 N/A
11/30/95 48.91 167,870 0.79 0.51 138 N/A
11/30/96 28.05 381,367 0.71 0.51 121 0.0649
- ------------------------------------------------------------------------------------------------------------------------

2/9/93-11/30/93 7.80 65,032 0.82+++ 2.20+++ 165 N/A
11/30/94 (6.64) 104,194 0.81++ 1.52++ 211 N/A
11/30/95 32.92 149,910 0.76 1.01 229 N/A
11/30/96 18.40 186,368 0.74 0.82 164 0.0534
- ------------------------------------------------------------------------------------------------------------------------

2/9/93-11/30/93 0.40 42,911 0.97+++ 0.32+++ 40 N/A
11/30/94 0.19 75,342 0.96+++ 0.31+++ 54 N/A
11/30/95 30.66 115,276 0.93 (0.05) 52 N/A
11/30/96 19.92 160,073 0.90 (0.02) 63 0.0443
- ------------------------------------------------------------------------------------------------------------------------

6/3/96-11/30/96 3.60 35,124 1.05+++ 0.46+++ 47 0.0600
- ------------------------------------------------------------------------------------------------------------------------

2/9/93-11/30/93 9.90 43,737 1.50+++ 0.38+++ 58 N/A
11/30/94 6.87 136,758 1.28 0.42 67 N/A
11/30/95 15.58 165,752 1.14 1.02 106 N/A
11/30/96 18.21 246,482 1.03 1.04 70 0.0256
- ------------------------------------------------------------------------------------------------------------------------

10/28/94-11/30/94 (2.20) 12,438 1.70+++ 1.60+++ -- N/A
11/30/95 4.63 48,961 1.70++ 0.76++ 52 N/A
11/30/96 14.85 157,008 1.59 0.47 53 0.0023
========================================================================================================================
</TABLE>

* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of Anchor
National Life Insurance Company and First SunAmerica Life Insurance
Company. If such expenses had been included, total return would have been
lower for each period presented.
@ The average commission per share is derived by taking the agency commissions
paid on equity securities trades and dividing by the number of shares
purchased or sold.
**** Currently, the Putnam Growth Portfolio.
+ Annualized

++ During the periods ended November 30, 1993, 1994, 1995 and 1996, the
investment adviser waived a portion of or all fees and assumed a portion
of or all expenses for the Portfolios. If all fees and expenses had been
incurred by the Portfolios, the ratio of expenses to average net assets
and the ratio of net investment income (loss) to average net assets would
have been as follows:

<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME (LOSS)
---------------------------------- --------------------------------------
1993 1994 1995 1996 1993 1994 1995 1996
<S> <C> <C> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------
Alliance Growth Portfolio.................. 1.56% 0.96% 0.79% 0.71% (0.13)% 0.23% 0.51% 0.51%
Growth/Phoenix Investment Counsel
Portfolio................................. 1.28 0.87 0.76 0.74 1.74 1.46 1.01 0.82
Provident Growth Portfolio****............. 1.46 1.05 0.93 0.90 (0.17) 0.22 (0.05) (0.02)
Aggressive Growth Portfolio................ -- -- -- 1.09 -- -- -- 0.42
Global Equities Portfolio.................. 2.52 1.28 1.14 1.03 (0.64) 0.42 1.02 1.04
International Diversified Equities
Portfolio................................. -- 3.50 2.09 1.59 -- (0.20) 0.37 0.47
===========================================================================================================================
</TABLE>

**** Currently, the Putnam Growth Portfolio.

6
<PAGE> 10

=========================================================
THE TRUST, ITS INVESTMENT OBJECTIVES AND POLICIES
=========================================================

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 the Anchor National Life
Insurance Company and First SunAmerica Life Insurance Company (collectively
referred to as the "Life Companies").

The Trust issues 21 separate series of shares ("Portfolios"), each of which
represents a separate managed portfolio of securities with its own investment
objectives. The Board of Trustees may establish additional series in the future.
The current Portfolios are the Cash Management Portfolio, Corporate Bond
Portfolio, Global Bond Portfolio, High-Yield Bond Portfolio, Worldwide High
Income Portfolio, SunAmerica Balanced Portfolio, Balanced/Phoenix Investment
Counsel Portfolio, Asset Allocation Portfolio, Utility Portfolio, Growth-Income
Portfolio, Federated Value Portfolio, Venture Value Portfolio, Alliance Growth
Portfolio, Growth/Phoenix Investment Counsel Portfolio, Putnam Growth Portfolio,
Aggressive Growth Portfolio, International Growth and Income Portfolio, Real
Estate Portfolio, Global Equities Portfolio, International Diversified Equities
Portfolio, and Emerging Markets Portfolio. All shares may be purchased or
redeemed by the Accounts at net asset value without any sales or redemption
charge.

SunAmerica Asset Management Corp. ("SAAMCo" or the "Adviser"), an indirect,
wholly owned subsidiary of Anchor National Life Insurance Company, serves as
investment adviser for all the Portfolios of the Trust. (See "Management.") Some
Portfolios benefit from discretionary advisory services provided by separate
registered investment advisers (each a "Subadviser"). Alliance Capital
Management L.P. ("Alliance") serves as subadviser for the Global Equities,
Alliance Growth and Growth-Income Portfolios; Davis Selected Advisers, L.P.
("Davis Selected") serves as subadviser for the Venture Value and Real Estate
Portfolios; Federated Investment Counseling ("Federated") serves as subadviser
for the Corporate Bond, Federated Value and Utility Portfolios; Goldman Sachs
Asset Management ("GSAM") serves as subadviser for the Asset Allocation
Portfolio; Goldman Sachs Asset Management International ("GSAM-International")
serves as subadviser for the Global Bond Portfolio; Morgan Stanley Asset
Management Inc. ("MSAM") serves as subadviser for the International Diversified
Equities and Worldwide High Income Portfolios; Phoenix Investment Counsel, Inc.
("Phoenix") serves as subadviser for the Growth/Phoenix Investment Counsel and
Balanced/Phoenix Investment Counsel Portfolios; and Putnam Investment
Management, Inc. ("Putnam") serves as subadviser for the Putnam Growth,
International Growth and Income and Emerging Markets Portfolios. There is no
subadviser for the Cash Management, High-Yield Bond, SunAmerica Balanced, or
Aggressive Growth Portfolios. SAAMCo performs all investment advisory services
for these Portfolios.

Each Portfolio has investment objectives and certain policies as described in
this Prospectus. There can be no guarantee that any Portfolio's investment
objectives will be met or that the net return on an investment in a Portfolio
will exceed that which could have been obtained through other investment or
savings vehicles. Investors should carefully review the investment objectives
and policies of a Portfolio and consider their ability to assume the risks
involved before making an investment in a Portfolio. Each Portfolio also has
certain fundamental investment restrictions, which are described in the
Statement of Additional Information. A Portfolio's fundamental investment
restrictions may not be changed without a majority of the outstanding voting
securities of that Portfolio. See "Shareholder Voting Rights." All other
investment practices may be changed without a vote of the shareholders.

The Global Bond, Worldwide High Income and International Diversified Equities
Portfolios are organized as separate "non-diversified" portfolios of the Trust
(as such term is defined under the Investment Company Act of 1940, as amended,
(the "1940 Act")); subject, however, to certain tax diversification
requirements. See "Dividends, Distributions and Federal Taxes." Each of the
Utility and Real Estate Portfolios intend to concentrate its investments in the
industry stated in its name, which means that each Portfolio intends to invest
at least 25% of its total assets in the securities of such industry.

The Portfolios' investment objectives are discussed below. Please also refer,
however, to the section captioned "Description of Securities and Investment
Techniques" for a more detailed description of the characteristics and risks
associated with the types of securities in which the various Portfolios may
invest. Reference is also made in the following sections to ratings assigned to
certain types of securities by Standard & Poor's Rating Services, a Division of
the McGraw Hill Companies, Inc. ("S&P"), Moody's Investors Service, Inc.
("Moody's"), Fitch Investors

7
<PAGE> 11

Service, Inc. ("Fitch"), Duff & Phelps Credit Rating Co. ("Duff & Phelps") and
Thomson BankWatch, Inc., recognized independent securities ratings institutions.
References to the particular ratings categories of the securities in which a
Portfolio may invest should be read to include unrated securities deemed by the
Adviser or Subadviser to be of comparable quality to the rated securities in
such categories. A description of the ratings categories assigned by S&P,
Moody's, Fitch, Thompson BankWatch and Duff & Phelps is contained in the
Statement of Additional Information.

CASH MANAGEMENT PORTFOLIO

The Cash Management Portfolio seeks high current yield while preserving capital
by investing in a diversified selection of money market instruments including
corporate bonds and notes; commercial bank obligations; securities of the U.S.
government, its agencies and instrumentalities; commercial paper and savings
association obligations. These securities mature in one year or less. The Cash
Management Portfolio also may enter into repurchase agreements and firm
commitment agreements and purchase when-issued securities. See "Description of
Securities and Investment Techniques."

The Cash Management Portfolio invests only in securities determined, in
accordance with procedures established by the Trust's Board of Trustees, to
present minimal credit risks. It is the current policy to invest only in
instruments rated in the highest rating category by Moody's and S&P (for
example, commercial paper rated P-1 and A-1 by Moody's and S&P, respectively) or
in instruments that are issued, guaranteed or insured by the U.S. government,
its agencies or instrumentalities as to the payment of principal and interest,
or in other instruments rated in the highest two categories by either Moody's or
S&P, provided the issuer has commercial paper rated in the highest rating
category by Moody's and S&P.

Although investments in the Cash Management Portfolio should present minimal
market risk because the investments of the Portfolio consists of only short-term
debt obligations, an investment in this Portfolio is subject to the risks of
declining interest rates and the economy as a whole. Also, the return on an
investment in the Cash Management Portfolio would not be the same as the return
on an investment in a money market fund available directly to the public even
where yields are equivalent, due to fees imposed at the variable annuity
contract level.

CORPORATE BOND PORTFOLIO

The Corporate Bond Portfolio seeks a high total return with only moderate price
risk by investing primarily in investment grade fixed-income securities. Under
normal market conditions, at least 65% of the Portfolio's total assets will be
invested in investment grade debt securities (i.e., those rated at the time of
purchase within the four highest grades assigned by Moody's (Aaa, Aa, A or Baa)
or by S&P (AAA, AA, A or BBB)), securities issued or guaranteed by the U.S.
government or its agencies or instrumentalities (including mortgage-backed
securities) or repurchase agreements collateralized by such investment grade or
U.S. government securities. In addition, under normal circumstances, the
Portfolio will invest at least 65% of the value of its total assets, taken at
market value at the time of investment, in corporate debt securities, including
asset-backed securities and privately placed debt securities, of domestic and
foreign issuers. Certain fixed rate obligations in which the Portfolio invests
may involve equity characteristics. The Portfolio may, for example, invest in
unit offerings that combine fixed rate securities and common stock or common
stock equivalents such as warrants, rights and options. These may be purchased
by the Portfolio only when the debt security meets the Portfolio's investment
criteria and the value of the equity security or equity equivalent is relatively
small. If the equity security or equity equivalent becomes valuable it will
ordinarily be sold rather than exercised in the case of warrants, rights or
options. It is anticipated that no more than 10% of the assets of the Portfolio
will constitute equity securities or equity equivalents regardless of how such
securities were acquired. To the extent that such securities are acquired, there
may be some additional investment risk and countervailing opportunity, depending
upon the extent to which the common stock price fluctuates.

Up to 35% of the Portfolio's total assets may be invested in the following:
other types of debt securities, including those rated below investment grade,
zero-coupon bonds, pay-in-kind securities, and units consisting of bonds and
equity equivalents; commercial paper rated at the time of purchase P-1 by
Moody's or A-1 by S&P; obligations of banks having total assets in excess of $1
billion; and preferred stocks (including those rated below investment grade,
convertible into, or carrying warrants to purchase, common stocks or other
equity interests).

The Portfolio will generally invest in debt securities and preferred stocks
rated below investment grade

8
<PAGE> 12

only to the extent that the Subadviser believes that lower credit quality of
such securities is offset by more attractive yields. There is no limit with
respect to the rating categories for securities in which the Portfolio may
invest. The weighted average ratings by S&P as a percentage of all bonds held by
the Portfolio during the fiscal year ended November 30, 1996 were: "AAA" 21.2%;
"AA" 10.0%; "A" 20.0%; "BBB" 26.6%; "BB" 9.9%; and "B" 12.3%. See "Description
of Securities and Investment Techniques -- Corporate Debt Instruments -- Lower
Grade" for a description of lower-rated securities.

The Portfolio may invest in high quality short-term money market instruments
denominated in U.S. dollars, including repurchase agreements, which are also
authorized for purchase by the Cash Management Portfolio. The Portfolio may
enter into "dollar rolls" in which the Portfolio sells mortgage or other
asset-backed securities for delivery in the current month and simultaneously
contracts to repurchase substantially similar (same types, coupons and maturity)
securities on a specified future date. The Portfolio may also invest in
synthetic or derivative instruments based on permitted investments, including
futures contracts, options, interest-rate swaps, mortgage swaps and interest-
rate caps, floors and collars.

GLOBAL BOND PORTFOLIO

The investment objective of the Global Bond Portfolio is to provide investors
with a high total return, emphasizing current income and, to a lesser extent,
providing opportunities for capital appreciation. Under normal circumstances,
the Portfolio will seek to meet its investment objective by pursuing investment
opportunities in foreign and domestic high quality fixed-income securities
markets and by engaging in currency transactions to enhance returns and for the
purpose of hedging its investments. High quality securities are defined as
securities which have ratings of at least AA by S&P or Aa by Moody's ("High
Quality Ratings").

The fixed-income securities in which the Portfolio may invest include: (i)
securities issued or guaranteed by the U.S. government, its agencies or
instrumentalities and custodial receipts thereof; (ii) securities issued or
guaranteed by a foreign government or any of its political subdivisions,
authorities, agencies or instrumentalities or by multiple governmental entities
(i.e., international organizations designated or supported by governmental
entities to promote economic reconstruction or development, such as the World
Bank) rated A or better by S&P or Moody's, provided that the obligations are
denominated in the issuer's own currency; (iii) corporate debt securities having
at least one High Quality Rating or, if unrated, determined by the Subadviser to
be of comparable credit quality; (iv) certificates of deposit and bankers'
acceptances issued or guaranteed by, or time deposits maintained at, banks
(including U.S. or foreign branches of U.S. banks or U.S. or foreign branches of
foreign banks) having total assets of more than $1 billion and determined by the
Subadviser to be of comparable credit quality to securities with a High Quality
Rating; (v) commercial paper rated A-1 or better by S&P, P-1 or better by
Moody's, Fitch-1 or better by Fitch, or Duff 1 or better by Duff & Phelps or, if
not rated, issued by U.S. or foreign companies having outstanding debt
securities with a high quality rating and determined by the Subadviser to be of
comparable credit quality to securities with a high quality rating; and (vi)
mortgage-related and asset-backed securities having at least one High Quality
Rating.

Although the Portfolio may invest in securities satisfying the minimum credit
quality criteria prescribed above, the Portfolio generally intends to invest at
least 50% of its total assets in securities having the highest applicable credit
quality rating. Currently, most of the foreign securities that meet the
Portfolio's credit quality standards are likely to be securities issued by
foreign governments. The debt securities in which the Portfolio will invest may
have fixed, variable or floating interest rates.

In selecting securities for the Portfolio, the Subadviser will consider such
factors as the security's duration, sector and credit quality rating as well as
the security's yield and prospects for capital appreciation. It is expected that
the Portfolio will use currency transactions both to enhance returns for a given
level of risk and to hedge its exposure to foreign currencies. While the
Portfolio will have both long and short currency positions, neither its net long
foreign currency exposure nor its net short foreign currency exposure will
exceed the value of the Portfolio's total assets.

Under normal circumstances, the Portfolio will maintain a dollar-weighted
average duration of not more than 7.5 years. However, the Portfolio is not
subject to any limitation with respect to the average maturity of its Portfolio
or the individual securities in which the Portfolio may invest. Duration
represents the weighted average maturity of expected cash flows on a debt
obligation, discounted to present value. Maturity measures only the time until
final payment is due on a bond or other debt security; it

9
<PAGE> 13

takes no account of the pattern of a security's cash flows over time. In
computing the duration of its portfolio, the Subadviser will have to estimate
the duration of debt obligations that are subject to prepayment or redemption by
the issuer. The Portfolio may use various techniques to shorten or lengthen its
dollar-weighted average duration, including the acquisition of debt obligations
at a premium or discount, transactions in options, futures contracts, options on
futures and interest-rate swaps, caps and floors. The Portfolio may also invest
in mortgage-related securities and enter into dollar rolls.

It is expected that the Portfolio will employ certain active currency and
interest-rate management techniques involving risks different from those
associated with investing solely in dollar-denominated fixed-income securities
of U.S. issuers. Such active management techniques include transactions in
options (including yield curve options), futures and options on futures, forward
foreign currency exchange contracts, currency options and futures, currency and
interest-rate swaps and floors, caps and collars. The aggregate amount of the
Portfolio's net currency exposure will not exceed its total asset value.
However, to the extent that the Portfolio is fully invested in fixed-income
securities while also maintaining currency positions, it may be exposed to
greater combined risk. The Portfolio's net currency positions may expose it to
risks independent of its securities positions.

The Portfolio will, under normal market conditions, have at least 30% of its
total assets, adjusted to reflect the Portfolio's net exposure after giving
effect to currency transactions and positions, denominated in U.S. dollars. The
Portfolio may, for temporary defensive purposes (such as when instability or
unfavorable conditions exist in foreign countries), invest 100% of its total
assets in U.S. dollar-denominated securities or securities of U.S. issuers.

Because the securities markets in each of Canada, Germany, Japan and the United
Kingdom are highly developed, liquid and subject to extensive regulation, the
Global Bond Portfolio may invest up to 35% of its total assets in the securities
of corporate and government issuers located in any one of such countries.
Concentration of the Portfolio's investments in such issuers will subject the
Portfolio to the risks of adverse social, political or economic events which may
occur in those countries.

Investment in foreign securities involves special risks. See "Description of
Securities and Investment Techniques -- Risks and Considerations Applicable to
Investment in Securities of Foreign Issuers."

HIGH-YIELD BOND PORTFOLIO

The primary investment objective of the High-Yield Bond Portfolio is a high
level of current income; its secondary investment objective is capital
appreciation. Under normal market conditions, the Portfolio will invest at least
65% of its total assets in high-yield bonds. Subject to this requirement the
Portfolio may maintain assets in cash or cash equivalents, including commercial
bank obligations (certificates of deposit; bankers' acceptances, which are time
drafts on a commercial bank for which the bank accepts an irrevocable obligation
to pay at maturity; and demand or time deposits), commercial paper (short-term
notes issued by corporations or governmental bodies) and obligations issued or
guaranteed by the U.S. government. These "high-yield" bonds, commonly referred
to as "junk bonds," typically are subject to greater market fluctuations and
risk of loss of income and principal due to default by the issuer than are
investments in lower-yielding, higher-rated bonds. Further, a substantial
portion of the Portfolio's assets will generally be invested in long-term (over
10 years to maturity) and intermediate-term (3 to 10 years to maturity)
fixed-income securities, with emphasis on higher-yielding, higher-risk,
lower-rated or unrated corporate bonds.

High-yield, high-risk bonds generally include any bonds that are rated Ba or
below by Moody's or BB or below by S&P. Bonds rated Ba or BB or below are
considered speculative. The Portfolio may invest without limitation in bonds
rated as low as Ca by Moody's or C by S&P (or unrated but considered by the
Adviser of equivalent quality). In addition, the Portfolio may invest up to 10%
of its total assets in bonds rated C by Moody's or D by S&P. The weighted
average ratings by Moody's as a percentage of all bonds held by the Portfolio
during the fiscal year ended November 30, 1996 were: "Ba" 8.0%; "B" 86.3%; and
"Caa" 4.4%; and the balance 1.3% in unrated bonds which the adviser deemed
comparable to "Caa" rating. See "Description of Securities and Investment
Techniques -- Corporate Debt Instruments -- Lower Grade" and "Description of
Securities and Investment Techniques -- Risk Factors Relating to High-Yield
Bonds" for a more detailed description of these securities.

In pursuing its secondary investment objective of capital appreciation, the
Portfolio may purchase high-yield bonds that are expected by the Adviser to
increase in value due to improvements in their credit quality or ratings or
anticipated declines in interest rates. In addition, the Portfolio may invest
for this purpose up to 25% of its assets in equity securities, such as common
stocks, or other securities having

10
<PAGE> 14

common stock characteristics. Securities designated as having "common stock"
characteristics include, but are not limited to, securities convertible into or
exchangeable for common stock. Such securities normally will be purchased as
part of a unit with fixed-income securities or when an unusual opportunity for
capital appreciation is perceived due to anticipated improvement in the issuer's
credit quality or ratings. The Portfolio also may purchase or hold warrants or
rights.

Up to 25% of the Portfolio's assets may be invested in securities of foreign
issuers, which are generally denominated in currencies other than the U.S.
dollar. The Portfolio also has the ability to hold a portion of its assets in
foreign currencies and to enter into forward foreign currency exchange
contracts, currency options, currency and financial futures contracts, and
options on such futures contracts. The Portfolio may enter into repurchase
agreements and firm commitment agreements and may purchase securities on a
when-issued basis. Investment in foreign securities also involves special risks.
See "Description of Securities and Investment Techniques -- Risks and
Considerations Applicable to Investment in Securities of Foreign Issuers."

WORLDWIDE HIGH INCOME PORTFOLIO

The investment objective of the Worldwide High Income Portfolio is 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 Portfolio seeks to achieve its investment objective by allocating
its assets among any or all of three investment sectors: U.S. corporate
lower-rated and unrated debt securities, emerging country debt securities and
global fixed-income securities offering high real yields. The types of
securities in each of these investment sectors are described in detail in the
Statement of Additional Information. In selecting U.S. corporate lower-rated and
unrated debt securities for the Portfolio, the Subadviser will consider, among
other things, the price of the security, and the financial history, condition,
prospects and management of the issuer. The Subadviser intends to invest a
portion of the Portfolio's assets in emerging country debt securities that
provide a high level of current income, while at the same time holding the
potential for capital appreciation if the perceived creditworthiness of the
issuers improves due to improving economic, financial, political, social or
other conditions in the country in which the issuer is located. In addition, the
Subadviser will attempt to invest a portion of the Portfolio's assets in
fixed-income securities of issuers in global fixed-income markets displaying
high real (inflation adjusted) yields. Under normal conditions, the Portfolio
intends to invest between 80% and 100% of its total assets in some or all of
three categories of higher-yielding securities, some of which may entail
increased credit and market risk.

The Subadviser's approach to multi-currency fixed-income management is strategic
and value-based and designed to produce an attractive real rate of return. The
Subadviser's assessment of the bond markets and currencies is based on an
analysis of real interest rates. Current nominal yields of securities are
adjusted for inflation prevailing in each currency sector using an analysis of
past and projected inflation rates. The Portfolio's aim is to invest in bond
markets which offer the most attractive real returns relative to inflation.

From time to time, a portion of the Portfolio's investments, which may be up to
100% of its investments, may be considered to have credit quality below
investment grade as determined by internationally recognized credit rating
agency organizations, such as Moody's and S&P. Such lower-rated bonds are
commonly referred to as "junk bonds." Securities in such lower rating categories
may have predominantly speculative characteristics or may be in default. See
"Description of Securities and Investment Techniques -- Corporate Debt
Instruments -- Lower Grade" for a description of Moody's and S&P's corporate
bond ratings. Ratings represent the opinion of rating agencies as to the quality
of bonds and other debt securities they undertake to rate at the time of
issuance. However, ratings are not absolute standards of quality and may not
reflect changes in an issuer's creditworthiness. Accordingly, while the
Subadviser will consider ratings, it will perform its own analysis and will not
rely principally on ratings. Emerging country debt securities in which the
Portfolio may invest will be subject to high risk and will not be required to
meet a minimum rating standard and may not be rated for creditworthiness by any
internationally recognized credit rating organization. The Portfolio's
investments in U.S. corporate lower-rated and unrated debt securities and
emerging country debt securities are expected to be rated in the lower and
lowest rating categories of internationally recognized credit rating
organizations. Ratings of a foreign debt instrument, to the extent that those
ratings are undertaken, are related to evaluations of the country in which the
issuer of the instrument is located. Ratings generally take into account the
currency in which a foreign debt instrument is denominated; instruments issued
by a foreign government in other than the local

11
<PAGE> 15

currency, for example, typically have a lower rating than local currency
instruments due to the existence of an additional risk that the government will
be unable to obtain the required foreign currency to service its foreign
currency-denominated debt. In general, the ratings of debt securities or
obligations issued by a foreign public or private entity will not be higher than
the rating of the currency or the foreign currency debt of the central
government of the country in which the issuer is located, regardless of the
intrinsic creditworthiness of the issuer. To mitigate the risks associated with
investment in such lower-rated securities, the Portfolio will diversify its
holdings by market, issuer, industry and credit quality. The weighted average
ratings by Moody's as a percentage of all bonds held by the Portfolio during the
fiscal year ended November 30, 1996 were: "Ba" 21.34%; "B" 35.80%; and "Caa"
1.14%; "C" 0.05%; and the balance 41.67% in unrated bonds. See "Risk Factors
Relating to High-Yield Bonds" and "Risks and Considerations Applicable to
Investment in Securities of Foreign Issuers" under "Description of Securities
and Investment Techniques."

The Portfolio may invest in or own securities of companies in various stages of
financial restructuring, bankruptcy or reorganization which are not currently
paying interest or dividends, provided that the total value at the time of
purchase of all such securities will not exceed 10% of the value of the
Portfolio's total assets. The Portfolio may have limited recourse in the event
of default on such debt instruments. The Portfolio may invest in loans,
assignments of loans and participation in loans. See the Statement of Additional
Information for a description of these investments. The Portfolio may also
invest in depository receipts issued by U.S. or foreign financial institutions.
See the Statement of Additional Information for further information.

The Portfolio is not restricted in the portion of its assets which may be
invested in securities denominated in a particular currency and a substantial
portion of its assets may be invested in non-U.S. dollar-denominated securities.
The portion of the Portfolio's assets invested in securities denominated in
currencies other than the U.S. dollar will vary depending on market conditions.
The analysis of currencies is made independent of the analysis of markets. Value
in foreign exchange is determined by relative purchasing power parity of a given
currency. The Portfolio seeks to invest in currencies currently undervalued
based on purchasing power parity. The Subadviser analyzes current account and
capital account performance and real interest rates to adjust for short-term
currency flows. Although the Portfolio is permitted to engage in a wide variety
of investment practices designed to hedge against currency exchange rate risks
with respect to its holdings of non-U.S. dollar-denominated debt securities, the
Portfolio may be limited in its ability to hedge against these risks. See
"Foreign Currency Transactions" and "Short Sales" under "Description of
Securities and Investment Techniques." The Portfolio may also write (i.e., sell)
covered call options and may enter into futures contracts and options on futures
and sell indexed financial futures contracts. See "Futures Contracts and Options
Thereon" and "Options on Securities and Securities Indices" under "Description
of Securities and Investment Techniques."

The average time to maturity of the Portfolio's securities will vary depending
upon the Subadviser's perception of market conditions. The Subadviser invests in
medium-term securities (i.e., those with a remaining maturity of approximately
five years) in a market neutral environment. When the Subadviser believes that
real yields are high, the Subadviser lengthens the remaining maturities of
securities held by the Portfolio and, conversely, when the Subadviser believes
real yields are low, it shortens the remaining maturities. Thus, the Portfolio
is not subject to any restrictions on the maturities of the debt securities it
holds, and the Subadviser may vary the average maturity of the securities held
in the Portfolio without limit.

The Portfolio may also invest in other types of securities and/or engage in a
variety of investment strategies including: zero-coupon, pay-in-kind, illiquid
and restricted securities; repurchase agreements; and borrowing for investment
and temporary purposes. See "Description of Securities and Investment
Techniques." For temporary defensive purposes, the Portfolio may invest part or
all of its total assets in cash or in short-term securities, including
certificates of deposit, commercial paper, notes, obligations issued or
guaranteed by the U.S. government or any of its agencies or instrumentalities.

SUNAMERICA BALANCED PORTFOLIO

The investment objective of the SunAmerica Balanced Portfolio is to conserve
principal by maintaining at all times a balanced portfolio of stocks and bonds.
In seeking to achieve the investment objective of the Portfolio, the Adviser has
the flexibility to select among different types of investments for capital
growth and income and may alter the composition of the Portfolio as economic and
market trends change. The Adviser considers both the opportunity for gain and
the risk of loss in making investments. The

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<PAGE> 16

Adviser anticipates that, over the long term, the Portfolio will consist of
equity investments, in the form of common and preferred stocks, warrants and
other rights, as well as long-term bonds and other debt securities such as
convertible securities, short-term investments and U.S. government securities.
The Portfolio will, under normal circumstances, invest at least 25% of its
assets in fixed-income senior securities; however, the fixed-income component
will exceed 25% when the Adviser believes such an adjustment in portfolio mix to
be necessary in order to conserve principal, such as in anticipation of decline
in the equities market. The Adviser shifts its emphasis among these different
types of investments, as well as among various industry sectors, as financial
trends and economic conditions change.

In selecting equity investments, the Adviser typically seeks companies of medium
to large capitalizations (generally $1 billion or more) that, based on their
future prospects or opportunities, it believes are undervalued in the
marketplace. Investments in companies with market capitalizations of less than
$1 billion may be more volatile than investments in companies with larger market
capitalizations, and thus the Portfolio intends to limit its investments in such
companies to no more than 20% of its total assets. See "Description of
Securities and Investment Techniques -- Risks Associated with Investing in Small
Companies."

In selecting debt investments, the Adviser seeks debt securities with longer
maturities during periods of anticipated lower interest rates and shorter-term
debt securities when interest rates are expected to rise. The Adviser generally
selects long-term debt securities from high quality bonds (rated AA or higher by
S&P, Aa or higher by Moody's) to achieve income and capital gains. The Adviser
may also invest the Portfolio's assets in high quality, short-term debt
securities (such as commercial paper rated A-1 by S&P or P-1 by Moody's, or
determined by the Adviser to be of equivalent quality if unrated). However, the
Adviser may invest up to 10% of the value of the Portfolio's total assets
(measured at the time of investment) in securities rated as low as BBB by S&P or
Baa by Moody's. See "Fixed-Income Securities" in "Description of Securities and
Investment Techniques" below for a discussion of the risks associated with
investing in such securities. See also the Statement of Additional Information
for a description of securities ratings.

The Adviser may select equity and debt securities for the Portfolio issued by
either domestic or foreign issuers. See "Description of Securities and
Investment Techniques" for a description of the risks associated with foreign
securities.

BALANCED/PHOENIX INVESTMENT COUNSEL PORTFOLIO

The Balanced/Phoenix Investment Counsel Portfolio seeks as its investment
objectives reasonable income, long-term capital growth and conservation of
capital. The Portfolio intends to invest based on combined considerations of
risk, income, capital enhancement and protection of capital value.

The Portfolio may invest in any type or class of security. Under normal
circumstances, the Portfolio will invest in common stocks and fixed-income
securities; however, it may also invest in securities convertible into common
stocks. At least 25% of the value of the Portfolio's assets will normally be
invested in fixed-income senior securities. The Portfolio may also engage in
certain options transactions and enter into financial futures contracts and
related options for hedging purposes, and may invest in zero coupon debt
obligations. Notwithstanding the foregoing, for temporary defensive purposes,
the Portfolio may actively pursue a policy of retaining cash or investing part
or all of its assets in cash equivalents, such as government securities and high
quality commercial paper. See "Description of Securities and Investment
Techniques" for a full discussion of the types of securities in which the
Portfolio may invest.

The Portfolio may invest up to 25% of the value of the Portfolio's total assets
in securities of foreign issuers, including emerging market securities and those
issued by foreign branches of U.S. banks. Such foreign investments may involve a
higher degree of risk than investments in domestic issuers. Foreign securities
are often denominated in foreign currencies, which means that their value will
be affected by changes in exchange rates, as well as other factors that affect
securities prices. Investment in foreign securities involves special risks. See
"Description of Securities and Investment Techniques -- Risks and Considerations
Applicable to Investment in Securities of Foreign Issuers."

With respect to investment in fixed-income securities, the Portfolio intends to
emphasize investments in investment grade fixed-income securities which are
rated within the four highest categories by recognized rating agencies such as
Moody's, S&P, Duff & Phelps or Fitch. However, the Portfolio may invest in
lower- or non-rated fixed-income securities, but will not invest more than 35%
of its net assets, determined at the time of investment, in high-yield,

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<PAGE> 17

high-risk fixed-income securities. A fixed-income securities issue may have its
ratings reduced below the minimum permitted for purchase by the Portfolio. In
that event, the Subadviser will determine whether the Portfolio should continue
to hold such security. If, in the Subadviser's opinion, market conditions
warrant, the Portfolio may, from time to time, increase its position in lower-
and non-rated securities. Investment in lower-rated and unrated fixed-income
securities involves certain risks not attendant to higher rated securities. For
the fiscal year ended November 30, 1996, less than 5% of the Portfolio's bond
holdings were below investment grade. See "Description of Securities and
Investment Techniques -- Corporate Debt Instruments and Risk Factors Relating to
High-Yield Bonds" for a full discussion of below investment grade fixed-income
securities and the risks associated therewith.

ASSET ALLOCATION PORTFOLIO

The investment objective of the Asset Allocation Portfolio is high total return
(including income and capital gains) consistent with preservation of capital
over the long-term. The Portfolio seeks to achieve its objectives by investing
in 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, including mortgage-related and asset-backed securities,
and money market instruments (debt securities maturing in one year or less).
Securities designated as having "common stock" characteristics include, but are
not limited to, securities convertible into or exchangeable for common stock.

The Subadviser will determine the relative mix of equities, fixed-income
securities and money market instruments for the Portfolio based on its view of
long-term economic and market trends under the relative risks and opportunities
for long-term total return of the different classes of assets. Under normal
conditions, the Subadviser expects (but is not required) to maintain an
investment mix falling within the following ranges: 40% to 80% in equities; 20%
to 50% in fixed-income securities; and 0% to 40% in money market instruments.
The Subadviser may make frequent shifts within these broad ranges whenever, in
the Subadviser's judgment, market or economic changes warrant a reallocation.
The Subadviser intends in normal situations to make any shifts in the
Portfolio's asset allocation gradually over time based on its views of long-term
trends and conditions.

The Portfolio may invest in securities of foreign issuers (which are generally
denominated in currencies other than the U.S. dollar), although there is no
requirement that the Portfolio maintain investments in foreign issuers. See
"Description of Securities and Investment Techniques -- Risks and Considerations
Applicable to Investment in Securities of Foreign Issuers." The Portfolio also
has the ability to hold a portion of its assets in foreign currencies and to
enter into forward foreign currency exchange contracts, currency options,
currency swaps, currency and financial futures contracts, and options on such
futures contracts.

The Portfolio's fixed-income investments will consist primarily of "investment
grade" bonds; that is, bonds that are rated BBB or better by S&P or Baa or
better by Moody's. Up to 25% of the Portfolio's fixed-income assets may be
invested in securities that are below investment grade as defined above,
including securities rated as low as CC by S&P or Ca by Moody's. Securities
rated BBB or below by S&P or Baa or below by Moody's are considered to have
speculative characteristics. The weighted average ratings by S&P as a percentage
of all bonds held by the Portfolio during the fiscal year ended November 30,
1996 were: "AAA" 55.6%; "A" 8.1%; "BBB" 20.2%; "BB" 14.1%; and "B" 2.0%. For a
more detailed description of the risks involved with these securities, see
"Description of Securities and Investment Techniques -- Corporate Debt
Instruments -- Lower Grade" and "Risk Factors relating to High-Yield, High-Risk
Bonds." The Portfolio's investments in foreign fixed-income securities will be
concentrated in securities issued or guaranteed as to principal and interest by
foreign governments or their agencies and instrumentalities or by multinational
agencies.

The Portfolio may enter into repurchase agreements and firm commitment
agreements, and may purchase when-issued securities. The Portfolio may also
engage in interest-rate swaps, mortgage swaps, transactions involving
interest-rate caps, floors and collars, dollar rolls and securities lending.

UTILITY PORTFOLIO

The Utility Portfolio seeks high current income and moderate capital
appreciation. The Portfolio's investment approach is based on the Subadviser's
conviction that over the long-term, the economy will continue to expand and
develop and that this economic growth will be reflected in the growth of the
revenues and earnings of utility companies. The Portfolio intends to achieve its
investment objective by investing in equity and debt securities of utility
companies that produce, transmit, or distribute gas and electric energy as well
as those companies that

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<PAGE> 18

provide communications facilities, such as telephone and telegraph companies.

The Portfolio will, under normal circumstances, invest at least 65% of its total
assets in securities of utility companies. Such investments will be primarily in
common stocks selected by the Subadviser on the basis of traditional research
techniques, including assessment of earnings and dividend growth prospects and
of the risk and volatility of an issuer's industry. However, other factors, such
as product position, market share, or profitability will also be considered by
the Subadviser. The Portfolio may also invest in preferred stocks, corporate
bonds, notes, and warrants of utility companies. Fixed-income securities
purchased by the Portfolio will be rated at least BBB by S&P or Baa by Moody's.

The Portfolio may also invest in other types of securities and/or engage in a
variety of investment strategies, including: U.S. government securities; money
market instruments; foreign securities; illiquid securities; repurchase and
reverse repurchase agreements; securities lending; when-issued and
delayed-delivery transactions; and options, financial futures and options on
such futures. See "Description of Securities and Investment Techniques" for more
information on these securities and strategies. For temporary defensive
purposes, the Portfolio may invest up to 100% of its assets in cash, cash
equivalents and short-term debt instruments.

Risk Factors Applicable to Utility Securities -- There exist certain risks
associated with the utility industry of which investors in the Portfolio should
be aware. These include (i) utility companies' difficulty in earning adequate
returns on investment despite frequent rate increases; (ii) restrictions on
operations and increased costs and delays due to governmental regulations; (iii)
building or construction delays; (iv) environmental regulations; (v) difficulty
of the capital markets in absorbing utility debt and equity securities; and (vi)
difficulties in obtaining fuel at reasonable prices. Further information
concerning the risks associated with the utility industry generally, and
particular segments within the utility industry is contained in the Statement of
Additional Information.

Reducing Risks of Utility Securities -- The Subadviser believes that the risks
of investing in utility securities can be reduced. The professional portfolio
management techniques used by the Subadviser to attempt to reduce these risks
include credit research and diversification techniques. The Subadviser will
perform its own credit analysis in addition to using recognized rating agencies,
and will obtain information from other sources, including the issuer's
management and other investment analysts. The Subadviser's credit analysis will
consider the issuer's financial soundness, its responsiveness to changes in
interest rates and business conditions, and its anticipated cash flow, interest
or dividend coverage, and earnings. In evaluating an issuer, the Subadviser
places special emphasis on the estimated current value of the issuer's assets
rather than historical cost.

GROWTH-INCOME PORTFOLIO

The Growth-Income Portfolio seeks growth of capital and income. In the selection
of securities for investment, the possibilities of appreciation and potential
dividends are given more weight than current yield. Ordinarily, the assets of
the Portfolio consist principally of a diversified group of common stocks, but
other types of securities, including preferred stocks, corporate bonds and
convertible bonds, may be held when deemed advisable. The Subadviser determines
the relative amounts to be invested in common stocks, preferred stocks, bonds
(including corporate and convertible), securities of the U.S. government, its
agencies and instrumentalities, cash and cash equivalents (such as commercial
bank and savings association obligations, commercial paper and short-term
corporate bonds and notes) and repurchase agreements. See "Description of
Securities and Investment Techniques."

FEDERATED VALUE PORTFOLIO

The Federated Value Portfolio seeks growth of capital and income. The Portfolio
pursues its investment objective by investing, under normal circumstances, at
least 65% of its assets in a portfolio of securities issued by the one hundred
companies contained in "The Leaders List" described below. The Portfolio's
investment approach is based upon the Subadviser's conviction that over the
longer term, the economy will continue to expand and develop and that this
economic growth will be reflected importantly in the growth of major
corporations. Generally, the Subadviser makes portfolio selections utilizing
fundamental analysis, with emphasis on the issuer's earning power, financial
condition and valuation.

The securities in which the Portfolio invests include, but are not limited to:
common stocks; preferred stocks; domestic issues of corporate debt obligations;
and warrants. The fixed-income securities in which the Portfolio may invest must
be rated, at the time of purchase, BBB or better by S&P, Baa by Moody's, or BBB
by Fitch. If a security loses its rating or has its rating reduced after the
Portfolio has purchased it,

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<PAGE> 19

the Portfolio is not required to sell the security, but will consider doing so.

The Portfolio may also invest in other securities and/or engage in various
investment strategies, including: foreign securities; repurchase agreements;
illiquid securities; and securities lending. See "Description of Securities and
Investment Techniques" for more information on these securities and strategies.
For temporary or defensive purposes, the Portfolio may also hold cash and invest
in U.S. government securities in such proportions as the Subadviser may deem
necessary for such purposes.

"The Leaders List" is a trade name which represents a list of 100 blue chip
companies selected by the Subadviser. In the opinion of the Subadviser,
securities of these companies represent diversified and highly marketable
investments. The Subadviser uses its proprietary securities selection process to
evaluate the relative value of securities suitable for "The Leaders List". The
Subadviser also uses a number of standards and fundamental research factors in
selecting "The Leaders List." "The Leaders List" generally includes leading
companies in their industries determined in terms of sales, earnings, and/or
market capitalization. Companies on "The Leaders List" typically have a market
capitalization in excess of $1 billion. The list is subject to continuous review
and modification.

VENTURE VALUE PORTFOLIO

The Venture Value Portfolio seeks growth of capital. Under normal circumstances,
the assets of the Portfolio will be invested in securities which the Subadviser
believes have above-average appreciation potential. Usually these securities are
common stocks. Income is not a significant factor in selecting investments for
the Portfolio.

Generally, the Portfolio will invest predominantly in equity securities of
companies with market capitalizations of at least $250 million. Investments will
consist of issues which the Subadviser believes have capital growth potential
due to factors such as undervalued assets or earnings potential, product
development and demand, favorable operating ratios, resources for expansion,
management abilities, reasonableness of market price, and favorable overall
business prospects. These companies may offer greater potential for capital
appreciation but may also involve certain risks. See "Description of Securities
and Investment Techniques -- Risks Associated With Investing in Small
Companies."

The Portfolio may invest in securities of foreign issuers. Such foreign
investments may involve a higher degree of risk than investments in domestic
issuers. Foreign securities are often denominated in foreign currencies, which
means that their value will be affected by changes in exchange rates, as well as
other factors that affect securities prices. To help reduce exposure to currency
fluctuations, the Portfolio may trade in forward foreign currency exchange
contracts (forward contracts), currency futures contracts and options thereon
and securities indexed to foreign securities. The Subadviser will use these
techniques to lock in an exchange rate in connection with transactions in
securities denominated or traded in foreign currencies, to hedge the currency
risk in foreign securities held by the Portfolio and to hedge a currency risk
involved in an anticipated purchase of foreign securities.

The Portfolio will generally invest in securities of foreign companies through
trades of individual securities on recognized exchanges and developed
over-the-counter markets, through American Depositary Receipts (ADRs) covering
such securities, and through U.S. registered investment companies primarily
investing in foreign securities. With respect to other registered investment
companies, no such investment may cause more than 10% of the Portfolio's total
assets to be invested in such companies. Such other investment companies usually
have their own management costs or fees and the Portfolio's Subadviser earns its
regular fee on such assets.

Investment in foreign securities and engaging in foreign currency transactions
involves special risks. See "Description of Securities and Investment
Techniques -- Risks and Considerations Applicable to Investment in Securities of
Foreign Issuers and Foreign Currency Transactions."

Sometimes a more defensive position may be desirable under certain economic or
financial circumstances. At these times, the Portfolio may without limitation
hold assets in cash and cash equivalents, including repurchase agreements, or in
fixed-income or other defensive securities rather than in securities selected
for appreciation potential. The
Portfolio may also have such holdings temporarily for the purpose of managing
exceptional in-flows and out-flows of cash.

The Portfolio may also engage in other types of investment practices, including,
but not limited to, investment in illiquid securities and lending of portfolio
securities. See "Description of Securities and Investment Techniques" for a
description of these investment techniques and a discussion of the other
techniques in which the Portfolio may engage.

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ALLIANCE GROWTH PORTFOLIO

GROWTH/PHOENIX INVESTMENT COUNSEL PORTFOLIO

PUTNAM GROWTH PORTFOLIO

The three Growth Portfolios have the same investment objectives, policies and
restrictions, but have different Subadvisers. The investment objective of each
Portfolio is to seek long-term growth of capital. Whatever current income is
generated by the Portfolio is incidental to the objective of capital growth.
Each Portfolio's objective of capital growth is sought by investing primarily in
common stocks or securities with common stock characteristics. Securities
designated as having "common stock" characteristics include, but are not limited
to, securities convertible into or exchangeable for common stock. Such
convertible securities may be rated below BBB by S&P or Baa by Moody's or be
determined by the subadviser to be of comparable quality (i.e., junk bonds). See
"Description of Securities and Investment Techniques -- Risk Factors Relating to
High-Yield, High-Risk Securities"). In addition, each Portfolio may purchase
preferred stocks and debt securities if its Subadviser believes they would help
achieve the Portfolio's objective. The potential for appreciation of capital is
the basis for investment decisions. Each Portfolio's Subadviser considers the
factors that it believes affect potential for capital appreciation, including an
issuer's current and projected revenue, earnings, cash flow and assets, as well
as general market conditions. When the outlook for common stocks is not
considered promising, for temporary defensive purposes, a substantial portion of
the assets may be invested in securities of the U.S. government, its agencies
and instrumentalities, cash and cash equivalents (such as commercial bank and
savings association obligations, commercial paper and short-term corporate bonds
and notes) and repurchase agreements. Because the securities purchased by these
Portfolios in pursuing their investment objective are selected for growth
potential rather than production of income, the market values of such securities
(and therefore, to a large extent, the net asset values per share of the
Portfolios) will tend to be more volatile in response to market changes than
they would be if income-producing securities were sought for investment by the
Portfolios. Up to 25% of each Portfolio's total assets may be invested in
foreign securities. See "Description of Securities and Investment
Techniques -- Risks and Considerations Applicable to Investment in Securities of
Foreign Issuers" and the Statement of Additional Information.

REAL ESTATE PORTFOLIO

The investment objective of the Real Estate Portfolio is total return through a
combination of growth and income. It invests primarily in securities of
companies principally engaged in or related to the real estate industry or which
own significant real estate assets or which primarily invest in real estate
financial instruments. Normally, at least 65% of its total assets will be
invested in securities of companies which have at least 50% of the value of
their assets, gross income or net profits attributable to ownership, financing,
construction, management or sale of real estate, or to products or services that
are related to real estate or the real estate industry. The Portfolio does not
invest directly in real estate. Real estate companies include real estate
investment trusts ("REITs"), or other securitized real estate investments,
brokers, developers, lenders and companies with substantial real estate holdings
such as paper, lumber, hotel and entertainment companies. The Portfolio invests
in common stocks and other equity securities and debt securities. In keeping
with its primary growth objective, it will normally invest primarily in equity
securities (including securities convertible into equity securities). It may
also invest in fixed income securities for income or as a defensive strategy
when the Subadviser believes that adverse economic or market conditions require
such strategy.

The remaining 35% of the Portfolio's assets may be invested in securities of
companies in any other industries. These may include companies which are not
primarily involved in real estate operations or ownership but which have
products or services relating to the real estate industry, such as manufacturers
and distributors of building supplies, financial institutions which make or
service real estate loans or companies which have substantial real estate assets
such as some companies in the energy, retailing or railroad industries. There is
no limitation on such investments except that the Portfolio intends to invest
less than 25% of its total assets in the securities of any industry other than
the real estate industry.

The Portfolio will invest in shares of REITs. REITs pool investors' funds for
investment primarily in income producing real estate or real estate related
loans or interests. A REIT is not taxed on income distributed to shareholders if
it complies with various requirements relating to its organization, ownership,
assets and income and with the requirement that it distribute to its
shareholders at least 95% of its taxable income (other than net capital gains)
for each taxable year. REITs can generally be classified

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<PAGE> 21

as Equity REITs, Mortgage REITs and Hybrid REITs. Equity REITs invest the
majority of their assets directly in real property and derive their income
primarily from rents. Equity REITs can also realize capital gains by selling
property that has appreciated in value. Mortgage REITs invest the majority of
their assets in real estate mortgages and derive their income primarily from
interest payments. Hybrid REITs combine the characteristics of both Equity REITs
and Mortgage REITs.

Risk Factors Applicable to The Real Estate Portfolio -- The Real Estate
Portfolio will generally not purchase securities rated BB or Ba or lower if such
purchase would then cause more than 30% of the Portfolio's net assets to be
invested in such securities. The Real Estate Portfolio does not presently intend
to have more than 5% of its assets invested in fixed income securities rated
below BBB by S&P or Baa by Moody's in the near future.

Because the Portfolio invests primarily in the real estate industry, it is
subject to risks associated with the direct ownership of real estate. The
Portfolio could also be subject to such risks by reason of direct ownership as a
result of a default on a debt security it may own. These risks include declines
in the value of real estate, risks related to general and local economic
conditions, overbuilding and increased competition, increases in property taxes
and operating expenses, changes in zoning laws, casualty or condemnation losses,
fluctuations in rental income, changes in neighborhood values, the appeal of
properties to tenants and increases in interest rates. If the Portfolio has
rental income or income from the disposition of real property, the receipt of
such income may adversely affect its ability to retain its tax status as a
regulated investment company.

Equity REITs may be affected by changes in the value of the underlying property
owned by the trusts, while Mortgage REITs may be affected by the quality of
credit extended. Equity and Mortgage REITs are dependent upon management skill,
may not be diversified and are subject to project financing risks. Such trusts
are also subject to heavy cash flow dependency, defaults by borrowers,
self-liquidation and the possibility of failing to qualify for tax-free
pass-through of income under the Internal Revenue Code of 1986, as amended (the
"Code") and to maintain exemption from registration under the 1940 Act. Changes
in interest rates may also affect the value of the debt securities in the
Portfolio's portfolio. By investing in REITs indirectly through the Portfolio, a
shareholder will bear not only his proportionate share of the expense of the
Portfolio, but also, indirectly, similar expenses of the REITs, including
compensation of management.

AGGRESSIVE GROWTH PORTFOLIO

The Aggressive Growth Portfolio seeks capital appreciation as its objective. The
Portfolio pursues this investment objective by investing, under normal
circumstances, at least 65% of its total assets in the equity securities of
small, lesser known or new growth companies or industries, such as
telecommunications, media and biotechnology. Such "Small Cap" companies will
typically have, at the time of purchase, market capitalizations of under $1
billion and have achieved, or are expected to achieve, growth or earnings over
various major business cycles. These companies may offer greater potential for
capital appreciation but may also involve certain risks. See "Description of
Securities and Investment Techniques -- Risks Associated With Investing in Small
Companies." The Portfolio may invest in securities issued by well known and
established domestic or foreign companies, as well as in newer and less-seasoned
companies. Such securities may be listed on an exchange or traded
over-the-counter. In addition, the Portfolio may invest up to 35% of its total
assets in debt securities that have the potential for capital appreciation due
to anticipated market conditions. The Portfolio may invest in securities rated
as low as BBB by S&P or Baa by Moody's.

The Portfolio is authorized to borrow for investment purposes to increase the
opportunity for greater return and for payment of dividends. Such borrowings
would constitute leverage, which is a speculative characteristic. Leveraging
will magnify declines as well as increases in the net asset value of the
Portfolio's shares and in the yield on the Portfolio's investments. See
"Description of Securities and Investment Techniques -- Borrowing and Other
Forms of Leverage."

INTERNATIONAL GROWTH AND INCOME PORTFOLIO

The investment objective of the International Growth and Income Portfolio is
growth of capital with current income as a secondary objective. The Portfolio
will seek its objectives by investing primarily in common stocks that offer
potential for capital growth. The Portfolio may also invest, consistent with its
objectives, in stocks that offer potential for current income. Under normal
market conditions, the Portfolio expects to invest substantially all of its
assets in securities principally traded on markets outside the United States.

Moreover, the Portfolio will normally diversify its investments among a number
of different countries and, except when investing for defensive purposes,

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<PAGE> 22

will invest at least 65% of its total assets in at least three countries other
than the United States.

The Portfolio may also purchase corporate bonds, notes and debentures (including
those rated below BBB by S&P or Baa by Moody's, i.e., junk bonds), preferred
stocks, securities convertible into common stocks or other equity securities, or
U.S. or foreign government securities if the Subadviser determines that their
purchase would help further the Portfolio's investment objectives or for
temporary defensive purposes. In addition, when circumstances warrant, the
Portfolio may hold some or all of its assets in cash or high-quality money
market instruments. See "Description of Securities and Investment
Techniques -- Corporate Debt Instruments" and "-- Risk Factors Relating to
High-Yield, High-Risk Bonds."

The types of securities selected for the Portfolio may vary from time to time in
light of the Portfolio's investment objectives, changes in interest rates, and
economic and other factors. The Subadviser will seek to identify securities that
offer the potential for capital growth, and that are undervalued in relation to
underlying asset values or earnings potential. In selecting securities for the
Portfolio, the Subadviser may invest in the securities of issuers in developed
countries, as well as emerging markets. Investing in emerging markets, however,
may involve risks not generally associated with more developed markets. See
"Description of Securities and Investment Techniques -- Risks and Considerations
Applicable to Investment in Securities of Foreign Issuers" for more details. In
addition, the Subadviser may invest in the securities of companies with equity
market capitalizations of less than $1 billion. These companies may offer
greater potential for capital appreciation, but may also involve certain risks.
See "Description of Securities and Investment Techniques -- Risks Associated
with Investing in Small Companies."

GLOBAL EQUITIES PORTFOLIO

The investment objective of the Global Equities Portfolio is to achieve
long-term growth of capital through investment primarily in common stocks or
securities of U.S. and foreign issuers with common stock characteristics and
through transactions in foreign currencies. Securities designated as having
"common stock" characteristics include, but are not limited to, securities
convertible into or exchangeable for common stock. A major premise of the
Portfolio's investment approach is the Subadviser's belief that economic and
political developments have helped to create new opportunities worldwide.

The assets of the Portfolio will be invested with geographic flexibility. Under
normal market conditions, the Portfolio will invest at least 50% of its assets
in equity securities of issuers domiciled outside the U.S. or dollar-denominated
securities or securities of U.S. issuers. The Subadviser seeks to identify those
companies, both domestic and foreign, likely to benefit from long-term trends
and shifting trade patterns as they develop in the global economy. The
Subadviser currently does not intend to invest more than 20% of the Portfolio's
total assets in issuers domiciled in, or governments of, developing countries
(i.e., those identified as such by the international financial community).

When prevailing market, economic, political or currency conditions warrant, the
Portfolio may purchase fixed-income securities (including securities of
governments other than the U.S., which may be securities of either national,
regional or local governments). For temporary defensive purposes, the Portfolio
may at times maintain all or any part of its assets in U.S. or
dollar-denominated or foreign currency-denominated cash or cash equivalents
(including U.S. government securities, foreign government securities,
certificates of deposit, time deposits, commercial paper, bankers' acceptances
and other high quality short-term debt securities).

It is expected that the Portfolio will use currency transactions and financial
index futures both to enhance returns for a given level of risk and to hedge its
exposure to foreign currencies and local market conditions. While the Portfolio
will have both long and short currency positions, neither its net long foreign
currency exposure nor its net short foreign currency exposure will exceed the
value of the Portfolio's total assets. See "Description of Securities and
Investment Techniques -- Risks and Considerations Applicable to Investment in
Securities of Foreign Issuers" and the Statement of Additional Information.

INTERNATIONAL DIVERSIFIED EQUITIES PORTFOLIO

The investment objective of the International Diversified Equities Portfolio is
to provide long-term capital appreciation by investing in accordance with
country weightings determined by the Subadviser in common stocks of foreign
issuers which, in the aggregate, replicate broad country indices. The Subadviser
utilizes a top-down approach in selecting investments for the Portfolio that
emphasizes country selection and weighting rather than individual stock
selection. This approach reflects the Subadviser's philosophy that a diversified
selection of securities representing exposure to world markets, based upon

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the economic outlook and current valuation levels for each country, is an
effective way to maximize the return and minimize the risk associated with
international investment.

The Subadviser determines country allocations for the Portfolio on an ongoing
basis within policy ranges dictated by each country's market capitalization and
liquidity. The Portfolio will invest in the industrialized countries throughout
the world that comprise the Morgan Stanley Capital International EAFE (Europe,
Australia and the Far East) Index. The Portfolio will also invest in emerging
country equity securities. Further information concerning emerging country
equity securities is contained in the Statement of Additional Information. See
"Description of Securities and Investment Techniques -- Risks and Considerations
Applicable to Investment in Securities of Foreign Issuers."

By analyzing a variety of macroeconomic and political factors, the Subadviser
develops fundamental projections on interest rates, currencies, corporate
profits and economic growth for each country. These country projections are used
then to determine what the Subadviser believes to be a fair value for the stock
market of each country. Discrepancies between actual value and fair value as
determined by the Subadviser provide an expected return for each stock market.
The expected return is adjusted by currency return expectations derived from the
Subadviser's purchasing-power parity exchange rate model to arrive at an
expected total return in U.S. dollars. The final country allocation decision is
then arrived at by considering the expected total return in light of various
country specific considerations such as market size, volatility, liquidity and
country risk.

Within a particular country, investments are made through the purchase of common
stocks which, in aggregate, replicate a broad market index, which in most cases
will be the Morgan Stanley Capital International EAFE Index for the given
country. The Subadviser may overweight or underweight an industry segment of a
particular index if it concludes this would be advantageous to the Portfolio.
Common stocks purchased for the Portfolio include common stocks and equivalents,
such as securities convertible into common stocks and securities having common
stock characteristics, such as rights and warrants to purchase common stocks.
Indexation of the Portfolio's stock selection reduces stock-specific risk
through diversification and minimizes transaction costs, which can be
substantial in foreign markets.

Common stocks purchased for the Portfolio normally will be listed on a major
stock exchange in the subject country. The Portfolio will not invest in the
stocks of U.S. issuers. For a description of special considerations and certain
risks associated with investments in foreign issuers, see "Description of
Securities and Investment Techniques -- Risks and Considerations Applicable to
Investment in Securities of Foreign Issuers." The Portfolio may temporarily
reduce its equity holdings in response to adverse market conditions and invest
in domestic, Eurodollar and foreign short-term money market instruments for
defensive purposes. Notwithstanding the foregoing, the Portfolios may seek to
gain exposure to certain foreign markets where direct investment may be
difficult or impracticable through investment in domestic closed-end mutual
funds which invest predominately in such markets.

The Portfolio may also engage in certain options transactions and enter into
financial futures contracts and related options for hedging purposes.

EMERGING MARKETS PORTFOLIO

The investment objective of the Emerging Markets Portfolio is long-term capital
appreciation. The Portfolio will invest in companies that the Subadviser
believes have above-average growth prospects primarily in emerging markets
outside the United States. The Subadviser currently expects that, under normal
market conditions, the Portfolio will invest substantially all of its assets,
other than short-term investments held pending investment, and, except when
investing for defensive purposes as described below, at least 65% of its total
assets, in common stocks and other equity securities of "emerging market"
companies. The Portfolio will consider an issuer of securities to be an
"emerging market" company if it is organized under the laws of an emerging
market country and has a principal office in such country, or if it derives 50%
or more of its revenues from business in emerging market countries. For these
purposes, a country is considered to be an "emerging market country" based on
the Subadviser's evaluation of its level of economic development or the size and
experience of its securities markets. While emerging market countries may change
over time depending on market and economic conditions, at present the Subadviser
believes that these countries include every country in the world except
Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland,
Italy, Japan, the Netherlands, New Zealand, Norway, Singapore, Spain, Sweden,
Switzerland, the United Kingdom and the United States. Investing in emerging
market countries generally involves special risks. See "Description of
Securities and Investment Techniques -- Risks and Considerations Applicable to

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<PAGE> 24

Investment in Securities of Foreign Issuers." The Portfolio will normally
diversify its investments among a number of different countries.

Common stocks and other equity securities are normally the Portfolio's main
investments. However, the Portfolio may purchase preferred stock, debt
securities and securities convertible into common stock or other equity
securities if the Subadviser believes they would help achieve the Portfolio's
objective. The Portfolio may also hold a portion of its assets in cash or
high-quality money market instruments.

Because the Subadviser evaluates securities for the Portfolio based on their
long-term potential for capital appreciation, the Portfolio's investments may
not appreciate or yield significant income over the shorter term, and, as a
result, the Portfolio's total return over certain periods may be less than that
of other equity mutual funds.

=========================================================

DESCRIPTION OF SECURITIES AND INVESTMENT TECHNIQUES

=========================================================

FIXED-INCOME SECURITIES -- Fixed-income securities are broadly characterized as
those that provide for periodic payments to the holder of the security at a
stated rate. Most fixed-income securities, such as bonds, represent indebtedness
of the issuer and provide for repayment of principal at a stated time in the
future. Others do not provide for repayment of a principal amount, although they
may represent a priority over common stockholders in the event of the issuer's
liquidation. Many fixed-income securities are subject to scheduled retirement,
or may be retired or "called" by the issuer prior to their maturity dates.

The market values of fixed-income securities tend to vary inversely with the
level of interest rates -- when interest rates rise, their values will tend to
decline; when interest rates decline, their values generally will tend to rise.
Long-term instruments are generally more sensitive to these changes than are
short-term instruments. The market value of fixed-income securities and
therefore their yield is also affected by the perceived ability of the issuer to
make timely payments of principal and interest.

CORPORATE DEBT INSTRUMENTS -- These instruments, such as bonds, represent the
obligation of the issuer to repay a principal amount of indebtedness at a stated
time in the future and, in the usual case, to make periodic interim payments of
interest at a stated rate.

Investment Grade -- A designation applied to intermediate and long-term
corporate debt securities rated within the highest four rating categories
assigned by S&P (AAA, AA, A or BBB) or by Moody's (Aaa, Aa, A or Baa). The
ability of the issuer of an investment grade debt security to pay interest
and to repay principal is considered to vary from extremely strong (for the
highest ratings) through adequate (for the lowest ratings given above),
although the lower-rated investment grade securities may be viewed as having
speculative elements as well.

Lower Grade -- A designation applied to intermediate and long-term corporate
debt securities that are not investment grade; commonly referred to as "junk
bonds". These include bonds rated BB or below by S&P, or Ba or below by
Moody's. These securities are considered speculative.

The Corporate Bond and Worldwide High Income Portfolios may invest in bonds
rated as low as C by Moody's or D by S&P without limitation. The High-Yield Bond
Portfolio may invest in bonds rated as low as Ca by Moody's (or CC by S&P) and
may invest in bonds rated as low as C by Moody's or D by S&P. The Asset
Allocation and Balanced/Phoenix Investment Counsel Portfolios may invest in
bonds rated as low as Ca by Moody's or CC by S&P. The International Growth and
Income Portfolio may invest up to 20% of its assets in bonds rated as low as C
by Moody's or S&P. The Emerging Markets Portfolio may invest in both
higher-rated and lower-rated fixed-income securities and is not subject to any
restrictions based on credit rating. Bonds rated Ca by Moody's are described as
"speculative in a high degree; often in default or having other marked
shortcomings." Bonds rated D by Moody's -- the lowest rated class -- can be
"regarded as having extremely poor prospects of ever attaining any real
investment standing." Not all fixed income securities are rated, and each of the
foregoing Portfolios may invest in securities that are not rated but that are
determined by the Adviser or Subadviser to be of comparable quality to the rated
securities in which the Portfolio may invest. Bonds rated C by S&P are of the
"highest degree of speculation"; those rated D by that organization are in
default and in arrears.

RISK FACTORS RELATING TO HIGH-YIELD, HIGH-RISK BONDS -- High-yield, high-risk
bonds are subject to greater fluctuations in value than are higher-rated bonds
because the values of high-yield bonds tend to reflect short-term corporate,
economic and market developments and investor perceptions of the issuer's credit
quality to a greater extent. Although under normal market conditions longer-term
securities yield more than shorter-term securities, they are subject to

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greater price fluctuations. Fluctuations in the value of a Portfolio's
investments will be reflected in its net asset value per share. The growth of
the high-yield bond market paralleled a long economic expansion, followed by an
economic downturn which severely disrupted the market for high-yield bonds and
adversely affected the value of outstanding bonds and the ability of the issuers
to repay principal and interest. The economy may affect the market for
high-yield bonds in a similar fashion in the future including an increased
incidence of defaults on such bonds. From time to time, legislation may be
enacted which could have a negative effect on the market for high-yield bonds.

High-yield bonds present the following risks:

Sensitivity to Interest Rate and Economic Changes -- High-yield, high-risk
bonds are very sensitive to adverse economic changes and corporate
developments. During an economic downturn or substantial period of rising
interest rates, highly leveraged issuers may experience financial stress
that would adversely affect their ability to service their principal and
interest payment obligations, to meet projected business goals and to obtain
additional financing. If the issuer of a bond defaulted on its obligations
to pay interest or principal or entered into bankruptcy proceedings, a
Portfolio may incur losses or expenses in seeking recovery of amounts owed
to it. In addition, periods of economic uncertainty and changes can be
expected to result in increased volatility of market prices (and therefore
yields) of high-yield bonds and the Portfolio's net asset value.

Payment Expectations -- High-yield, high-risk bonds may contain redemption
or call provisions. If an issuer exercised these provisions in a declining
interest-rate market, a Portfolio would have to replace the security with a
lower-yielding security, resulting in a decreased return for investors.
Conversely, a high-yield bond's value will decrease in a rising interest
rate market, as will the value of the Portfolio's assets. If the Portfolio
experiences unexpected net redemptions, this may force it to sell high-yield
bonds without regard to their investment merits, thereby decreasing the
asset base upon which expenses can be spread and possibly reducing the
Portfolio's rate of return.

Liquidity and Valuation -- There may be little trading in the secondary
market for particular bonds, which may affect adversely a Portfolio's
ability to value accurately or dispose of such bonds. Under such
circumstances, the task of accurate valuation becomes more difficult and
judgment would play a greater role due to the relative lack of reliable and
objective data. Adverse publicity and investor perceptions, whether or not
based on fundamental analysis, may decrease the values and liquidity of
high-yield bonds, especially in a thin market.

The Adviser or Subadviser attempts to reduce these risks through diversification
of the applicable Portfolio and by credit analysis of each issuer, as well as by
monitoring broad economic trends and corporate and legislative developments. If
a high-yield bond previously acquired by a Portfolio is downgraded, the Adviser
or Subadviser, as appropriate, will evaluate the security and determine whether
to retain or dispose of it.

U.S. GOVERNMENT SECURITIES -- Securities guaranteed by the U.S. government
include: (1) direct obligations of the U.S. Treasury (such as Treasury bills,
notes and bonds) and (2) federal agency obligations guaranteed as to principal
and interest by the U.S. Treasury (such as Government National Mortgage
Association ("GNMA") certificates and Federal Housing Administration
debentures). For these securities, the payment of principal and interest is
unconditionally guaranteed by the U.S. government. They are of the highest
possible credit quality. These securities are subject to variations in market
value due to fluctuations in interest rates, but if held to maturity, are
guaranteed by the U.S. government to be paid in full.

Securities issued by the U.S. government instrumentalities and certain federal
agencies are neither direct obligations of, nor are they guaranteed by, the U.S.
Treasury. However, they involve federal sponsorship in one way or another. For
example, some are backed by specific types of collateral; some are supported by
the issuer's right to borrow from the Treasury; some are supported by the
discretionary authority of the Treasury to purchase certain obligations of the
issuer; and others are supported only by the credit of the issuing government
agency or instrumentality. These agencies and instrumentalities include, but are
not limited to, Federal Land Banks, Farmers Home Administration, Central Bank
for Cooperatives, Federal Intermediate Credit Banks and Federal Home Loan Banks.

GNMA CERTIFICATES -- GNMA certificates are mortgage-backed securities
representing part ownership of a pool of mortgage loans on which timely payment
of interest and principal is guaranteed by the full faith and credit of the U.S.
government. GNMA certificates differ from typical

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bonds because principal is repaid monthly over the term of the loan rather than
returned in a lump sum at maturity. Because both interest and principal payments
(including prepayments) on the underlying mortgage loans are passed through to
the holder of the certificate, GNMA certificates are called "pass-through"
securities.

Although the mortgage loans in the pool have maturities of up to 30 years, the
actual average life of the GNMA certificates typically will be substantially
less because the mortgages are subject to normal principal amortization and may
be prepaid prior to maturity. Prepayment rates vary widely and may be affected
by changes in market interest rates. In periods of falling interest rates, the
rate of prepayment tends to increase, thereby shortening the actual average life
of the GNMA certificates. Conversely, when interest rates are rising, the rate
of prepayment tends to decrease, thereby lengthening the actual average life of
the GNMA certificates. Accordingly, it is not possible to predict accurately the
average life of a particular pool. Reinvestment of prepayments may occur at
higher or lower rates than the original yield on the certificates. Due to the
prepayment feature and the need to reinvest prepayments of principal at current
rates, GNMA certificates can be less effective than typical bonds of similar
maturities at "locking-in" yields during periods of declining interest rates,
although they may have comparable risks of decline in value during periods of
rising interest rates.

FNMA AND FHLMC MORTGAGE-BACKED OBLIGATIONS -- The Federal National Mortgage
Association ("FNMA"), a federally chartered and privately owned corporation,
issues pass-through securities representing an interest in a pool of
conventional mortgage loans. FNMA guarantees the timely payment of principal and
interest but this guarantee is not backed by the full faith and credit of the
U.S. government. The Federal Home Loan Mortgage Corporation ("FHLMC"), a
corporate instrumentality of the United States, issues participation
certificates that represent an interest in a pool of conventional mortgage
loans. FHLMC guarantees the timely payment of interest and the ultimate
collection of principal and maintains reserves to protect holders against losses
due to default, but the certificates are not backed by the full faith and credit
of the U.S. government. As is the case with GNMA certificates, the actual
maturity of and realized yield on particular FNMA and FHLMC pass-through
securities will vary based on the prepayment experience of the underlying pool
of mortgages.
OTHER MORTGAGE-RELATED SECURITIES -- The Global Bond, Corporate Bond, High-Yield
Bond, SunAmerica Balanced, Balanced/Phoenix Investment Counsel and Asset
Allocation Portfolios may invest in collateralized mortgage obligations ("CMOs")
or mortgage-backed bonds issued by financial institutions such as commercial
banks, savings and loan associations, mortgage banks and securities
broker-dealers (or affiliates of such institutions established to issue these
securities). CMOs are obligations fully collateralized directly or indirectly by
a pool of mortgages on which payments of principal and interest are dedicated to
payment of principal and interest on the CMOs. Payments on the underlying
mortgages (both interest and principal) are passed through to the holders,
although not necessarily on a pro rata basis, on the same schedule as they are
received. Mortgage-backed bonds are general obligations of the issuer fully
collateralized directly or indirectly by a pool of mortgages. The mortgages
serve as collateral for the issuer's payment obligations on the bonds, but
interest and principal payments on the mortgages are not passed through either
directly (as with GNMA certificates and FNMA and FHLMC pass-through securities)
or on a modified basis (as with CMOs). Accordingly, a change in the rate of
prepayments on the pool of mortgages could change the effective maturity of a
CMO but not that of a mortgage-backed bond (although, like many bonds,
mortgage-backed bonds may be callable by the issuer prior to maturity).

The Global Bond, Corporate Bond, High-Yield Bond, Asset Allocation and Emerging
Markets Portfolios may also invest in stripped mortgage-backed securities
("SMBS"), which are derivative multiclass mortgage securities, provided they are
issued or guaranteed by the U.S. government, its agencies or instrumentalities.
SMBS are usually structured with two classes that receive different proportions
of the interest and principal distributions from a pool of mortgage assets. A
common type of SMBS will have one class receiving all of the interest from the
mortgage assets, while the other class will receive all of the principal.
However, in some instances, one class will receive some of the interest and most
of the principal while the other class will receive most of the interest and the
remainder of the principal. If the underlying mortgage assets experience
greater-than-anticipated prepayments of principal, the Portfolio may fail to
fully recoup its initial investment in these securities. Although the market for
such securities is increasingly liquid, certain SMBS may not be readily
marketable and will be considered illiquid for purposes of the Portfolios'
limitation on investments in illiquid securities. The market value of

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the class consisting entirely of principal payments generally is unusually
volatile in response to changes in interest rates. The yields on a class of SMBS
that receives all or most of the interest from mortgage assets are generally
higher than prevailing market yields on other mortgage-backed securities because
their cash flow patterns are more volatile and there is a greater risk that the
initial investment will not be fully recouped.

ASSET-BACKED SECURITIES -- These securities represent an interest in a pool of
consumer or other types of loans ("asset-backed securities"). Payments of
principal and interest on the underlying loans are passed through to the holders
of asset-backed securities over the life of the securities. Some asset-backed
securities may be subject to early prepayment of principal, which can be
expected to accelerate during periods of declining interest rates. Such
prepayments can usually be reinvested only at the lower yields then prevailing
in the market. Therefore, during periods of declining interest rates, asset-
backed securities are less likely than other fixed-income obligations to
appreciate in value and less effective at locking in a particular yield. On the
other hand, asset-backed securities are subject to substantially the same risk
of depreciation during periods of rising interest rates as other fixed-income
securities.

DOLLAR ROLLS -- The Global Bond, Corporate Bond, High-Yield Bond, SunAmerica
Balanced, Balanced/Phoenix Investment Counsel, Asset Allocation and Emerging
Markets Portfolios may enter into "dollar rolls" in which the Portfolio sells
mortgage or other asset-backed securities ("Roll Securities") for delivery in
the current month and simultaneously contracts to repurchase substantially
similar (same type, coupon and maturity) securities on a specified future date.
During the roll period, the Portfolio foregoes principal and interest paid on
the Roll Securities. A Portfolio is compensated by the difference between the
current sales price and the lower forward price for the future purchase (often
referred to as the "drop") as well as by the interest earned on the cash
proceeds of the initial sale. A Portfolio also could be compensated through the
receipt of fee income equivalent to a lower forward price. A "covered roll" is a
specific type of dollar roll for which there is an offsetting cash position or a
cash equivalent security position which matures on or before the forward
settlement date of the dollar roll transaction. The Portfolio will hold and
maintain in a segregated account until the settlement date cash or liquid
securities in an amount equal to the forward purchase price. The Portfolios will
only enter into covered rolls. Covered rolls are not treated as a borrowing or
other senior security and will be excluded from the calculation of each
Portfolio's borrowings and other senior securities. Because "roll" transactions
involve both the sale and purchase of a security, they may cause the reported
portfolio turnover rate to be higher than that reflecting typical portfolio
management activities.

Dollar rolls involve certain risks including that if the broker-dealer to whom
the Portfolio sells the security becomes insolvent, the Portfolio's right to
purchase or repurchase the security subject to the dollar roll may be restricted
and the instrument which the Portfolio is required to repurchase may be worth
less than an instrument which the Portfolio originally held. Successful use of
dollar rolls will depend upon the Adviser's or Subadviser's ability to predict
correctly interest rates and in the case of mortgage dollar rolls, mortgage
prepayments. For these reasons, there is no assurance that dollar rolls can be
successfully employed.

SHORT-TERM DEBT SECURITIES -- Debt securities maturing within one year of date
of the purchase include (1) commercial bank obligations (certificates of
deposit, bankers' acceptances (time drafts on a commercial bank where the bank
accepts an irrevocable obligation to pay at maturity) and documented discount
notes (corporate promissory discount notes accompanied by a commercial bank
guarantee to pay at maturity)), (2) savings association obligations
(certificates of deposit issued by mutual savings banks or savings and loan
associations), (3) commercial paper (short-term notes with maturities of up to 9
months issued by corporations or governmental bodies), (4) corporate bonds and
notes (corporate obligations that mature, or that may be redeemed, in one year
or less), and (5) adjustable-rate mortgage securities backed by GNMA, FNMA,
FHLMC and other non-agency issuers. Although certain floating or variable rate
obligations (securities whose coupon rate changes at least annually and
generally more frequently) have maturities in excess of one year, they are also
considered short-term debt securities.

ZERO-COUPON, PAY-IN-KIND AND DEFERRED INTEREST BONDS -- The Global Bond,
Corporate Bond, High-Yield Bond, Worldwide High Income, SunAmerica Balanced,
Balanced/Phoenix Investment Counsel, Asset Allocation and Venture Value
Portfolios may invest in zero-coupon bonds and deferred interest bonds, or other
obligations that contain "original issue discount" for federal income tax
purposes. In addition, the Corporate Bond, High-Yield Bond and Worldwide High
Income Portfolios may invest in pay-in-kind securities. Zero-coupon, deferred
interest

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and capital appreciation bonds are debt obligations which are issued or
purchased at a significant discount from face value. Pay-in-kind bonds are debt
obligations which provide that the issuer thereof may, at its option, pay
interest on such bonds in cash or in the form of additional debt obligations.
Such investments may experience greater volatility in market value due to
changes in interest rates than do debt obligations, which make regular payments
of interest. A Portfolio will accrue income on such investments for tax and
accounting purposes, as required, which is distributable to shareholders and
which, because no cash is received at the time of accrual, may require the
liquidation of other portfolio securities under disadvantageous circumstances to
satisfy the Portfolio's distribution obligations.

REPURCHASE AGREEMENTS -- Each Portfolio may enter into repurchase agreements,
under which the Portfolio buys a security and obtains a simultaneous commitment
from the seller to repurchase the security at a specified time and price. The
seller must maintain appropriate collateral with the Trust's custodian or
subcustodian. A Portfolio will only enter into repurchase agreements involving
securities in which it could otherwise invest and with selected banks and
securities dealers whose financial condition is monitored by the Adviser or
applicable Subadviser, subject to the oversight of the Board of Trustees. If the
seller under the repurchase agreement defaults, the Portfolio may incur a loss
if the value of the collateral securing the repurchase agreement has declined,
and may incur disposition costs in connection with liquidating the collateral.
If bankruptcy proceedings are commenced with respect to the seller, realization
of the collateral by the Portfolio may be delayed or limited.

REVERSE REPURCHASE AGREEMENTS -- The Cash Management, Corporate Bond, High-Yield
Bond, Worldwide High Income, SunAmerica Balanced, Utility, Federated Value and
Aggressive Growth Portfolios may enter into reverse repurchase agreements. In a
reverse repurchase agreement, the Portfolio sells a security subject to the
right and obligation to repurchase such security. The Portfolio then invests the
proceeds from the transaction in another obligation in which the Portfolio is
authorized to invest. In order to minimize any risk involved, the Portfolio
maintains in a segregated account with the custodian cash or liquid securities
equal in value to the repurchase price.

ILLIQUID SECURITIES -- Each of the Portfolios may invest no more than 15% (10%
in the case of the Cash Management Portfolio) of the value of its net assets in
securities which are illiquid, including repurchase agreements providing for
settlement in more than seven days after notice, interest-rate and currency
swaps, caps, floors and collars. For this purpose, not all securities which are
restricted are deemed to be illiquid. For example, restricted securities which
the Board of Trustees, or the Adviser (or Subadviser, as the case may be)
pursuant to guidelines established by the Board of Trustees, has determined to
be marketable, such as securities eligible for sale under Rule 144A promulgated
under the Securities Act of 1933, as amended, or certain private placements of
commercial paper issued in reliance on an exemption from such Act pursuant to
Section 4(2) thereof, may be deemed to be liquid for purposes of this
restriction. This investment practice could have the effect of increasing the
level of illiquidity in the Portfolio to the extent that qualified institutional
buyers (as defined in Rule 144A) become for a time uninterested in purchasing
these restricted securities. In addition, a repurchase agreement which by its
terms can be liquidated before its nominal fixed-term on seven days or less
notice is regarded as a liquid instrument. Subject to the applicable limitation
on illiquid securities investments, a Portfolio may acquire securities issued by
the U.S. government, its agencies or instrumentalities in a private placement.
See "Illiquid Securities" in the Statement of Additional Information for a
further discussion of investments in such securities.

FIRM COMMITMENT AGREEMENTS AND WHEN-ISSUED AND DELAYED-DELIVERY
TRANSACTIONS -- Each Portfolio may purchase securities on a firm commitment,
when-issued or delayed-delivery basis. Firm commitment agreements and
when-issued or delayed-delivery transactions call for the purchase or sale of
securities at an agreed-upon price on a specified future date. While a Portfolio
will only purchase securities on a when-issued or delayed-delivery basis with
the intention of acquiring the securities, the Portfolio may sell the securities
before the settlement date, if it is deemed advisable to do so. At the time a
Portfolio makes the commitment to purchase securities on a when-issued or
delayed-delivery basis, the Portfolio will record the transaction and thereafter
reflect the value, each day, of such security in determining the net asset value
of the Portfolio. At the time of delivery of the securities, the value may be
more or less than the purchase price. A Portfolio will maintain in a segregated
account liquid assets having a value equal to or greater than the Portfolio's
purchase commitments. The Portfolio will likewise segregate liquid assets with
respect to securities sold on a delayed-delivery basis.

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INTEREST-RATE SWAPS, MORTGAGE SWAPS, CAPS, FLOORS AND COLLARS -- In order to
protect the value of the Global Bond, Corporate Bond, Asset Allocation and
Emerging Markets Portfolios from interest rate fluctuations and to hedge against
fluctuations in the fixed-income market in which the Portfolio's investments are
traded, the Portfolios may enter into interest-rate swaps and mortgage swaps or
purchase or sell interest-rate caps, floors or collars. A Portfolio will enter
into these hedging transactions primarily to preserve a return or spread on a
particular investment or portion of the portfolio and to protect against any
increase in the price of securities the Portfolio anticipates purchasing at a
later date. The Global Bond Portfolio may also enter into interest-rate swaps
for non-hedging purposes. Interest-rate swaps involve the exchange by the
Portfolio with another party of their respective commitments to pay or receive
interest, e.g., an exchange of floating-rate payments for fixed-rate payments.
Since interest-rate swaps are individually negotiated, the Portfolios expect to
achieve an acceptable degree of correlation between their respective portfolio
investments and their interest-rate positions. The Portfolios will only enter
into interest-rate swaps on a net basis, which means that the two payment
streams are netted out, with the Portfolios receiving or paying, as the case may
be, only the net amount of the two payments. Interest-rate swaps do not involve
the delivery of securities, other underlying assets or principal. Accordingly,
the risk of loss with respect to interest-rate swaps is limited to the net
amount of interest payments that the Portfolio is contractually obligated to
make. If the other party to an interest-rate swap defaults, the Portfolio's risk
of loss consists of the net amount of interest payments that the Portfolio is
contractually entitled to receive, if any. The use of interest-rate swaps is a
highly specialized activity which involves investment techniques and risks
different from those associated with ordinary portfolio securities transactions.

Mortgage swaps are similar to interest-rate swaps in that they represent
commitments to pay and receive interest. The notional principal amount, upon
which the value of the interest payments is based, is tied to a reference pool
or pools of mortgages.

The purchase of an interest-rate cap entitles the purchaser, to the extent that
a specified index exceeds a predetermined interest rate, to receive payments of
interest on a notional principal amount from the party selling such
interest-rate cap. The purchase of an interest-rate floor entitles the
purchaser, to the extent that a specified index falls below a predetermined
interest rate, to receive payments of interest on a notional principal amount
from the party selling such interest rate floor. An interest-rate collar is the
combination of a cap and a floor that preserves a certain return within a
predetermined range of interest rates.

The Portfolios will not enter into any mortgage swap, interest-rate swap, cap or
floor transaction unless the unsecured commercial paper, senior debt, or the
claims paying ability of the other party thereto is rated either AA or A-1 or
better by S&P or Aa or P-1 or better by Moody's, or is determined to be of
equivalent quality by the applicable Subadviser.

STRUCTURED SECURITIES -- The Global Bond, International Growth and Income,
Worldwide High Income and Emerging Markets Portfolios may invest in structured
notes, bonds or debentures, the value of the principal of and/or interest on
which is determined by reference to changes in the value of specific currencies,
interest rates, commodities, indices or other financial indicators (the
"Reference") or the relative change in two or more References. The interest rate
or the principal amount payable upon maturity or redemption may be increased or
decreased depending upon changes in the applicable Reference. The terms of the
structured securities may provide that in certain circumstances no principal is
due at maturity and, therefore, may result in the loss of the Portfolio's
investment. Structured securities may be positively or negatively indexed, so
that appreciation of the Reference may produce an increase or decrease in the
interest rate or value of the security at maturity. In addition, the change in
interest rate or the value of the security at maturity may be a multiple of the
change in the value of the Reference. Consequently, structured securities entail
a greater degree of market risk than other types of debt obligations. Structured
securities may also be more volatile, less liquid and more difficult to price
accurately than less complex securities.

SECURITIES LENDING -- Each Portfolio (except the Cash Management Portfolio) may
lend portfolio securities in amounts up to 33 1/3% of its respective total
assets to brokers, dealers and other financial institutions, provided such loans
are callable at any time by the Portfolio and are at all times secured by cash
or equivalent collateral. By lending its portfolio securities, a Portfolio will
receive income while retaining the securities' potential for capital
appreciation. As with any extensions of credit, there are risks of delay in
recovery and, in some cases, even loss of rights in the collateral should the
borrower of the securities fail financially. However, these loans of portfolio
securities will be made only to firms deemed by the Adviser or Subadviser to be

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creditworthy. The proceeds of such loans will be invested in high-quality
short-term debt securities, including repurchase agreements.

BORROWING AND OTHER FORMS OF LEVERAGE -- All of the Portfolios (except the Cash
Management Portfolio) are authorized to borrow money to the extent permitted by
applicable law. The 1940 Act permits each Portfolio to borrow up to 33 1/3% of
its total assets from banks for temporary or emergency purposes. In seeking to
enhance performance, a Portfolio may borrow for investment purposes and may
pledge assets to secure such borrowings. The Cash Management Portfolio may not
borrow, except from banks for temporary emergency purposes, and then in an
amount not in excess of 5% of the value of the Portfolio's total assets. In the
event that asset coverage for a Portfolio's borrowings falls below 300%, the
Portfolio will reduce within three days the amount of its borrowings in order to
provide for 300% asset coverage.

To the extent a Portfolio borrows for investment purposes, borrowing creates
leverage which is a speculative characteristic. Although a Portfolio is
authorized to borrow, it will do so only when the Adviser or Subadviser believes
that borrowing will benefit the Portfolio after taking into account
considerations such as the costs of borrowing and the likely investment returns
on securities purchased with borrowed monies. Borrowing by a Portfolio will
create the opportunity for increased net income but, at the same time, will
involve special risk considerations. Leveraging results from borrowing and will
magnify declines as well as increases in a Portfolio's net asset value per share
and net yield. The Portfolios expect that all of their borrowing will be made on
a secured basis. The Portfolios' custodian will either segregate the assets
securing the borrowing for the benefit of the lenders or arrangements will be
made with a suitable subcustodian. If assets used to secure a borrowing decrease
in value, a Portfolio may be required to pledge additional collateral to the
lender in the form of cash or securities to avoid liquidation of those assets.

RISKS ASSOCIATED WITH INVESTING IN SMALL COMPANIES -- Investing in smaller,
lesser known companies may involve certain risks not generally associated with
investments in larger, more well-established companies. For example, it may be
difficult to obtain reliable information and financial data on such companies
and the securities of these small companies may not be readily marketable,
making it difficult to dispose of shares when desirable. Also, securities of
small or emerging growth companies may be subject to more abrupt or erratic
market movements than larger, more established companies or the market average
in general. A risk of investing in smaller, emerging companies is that they
often are at an earlier stage of development and therefore have limited product
lines, market access for such products, financial resources and depth in
management than larger, more established companies, and their securities may be
subject to more abrupt or erratic market movements than securities of larger,
more established companies or the market averages in general. Finally, certain
smaller issuers may face difficulties in obtaining the capital necessary to
continue in operation and may go into bankruptcy, which could result in a
complete loss of an investment. Smaller companies also may be less significant
factors within their industries and may have difficulty withstanding competition
from larger companies. While smaller companies may be subject to these
additional risks, they may also realize more substantial growth than larger,
more established companies.

RISKS AND CONSIDERATIONS APPLICABLE TO INVESTMENT IN SECURITIES OF FOREIGN
ISSUERS -- Elements of risk and opportunity when investments in foreign issuers
are made include trade imbalances and related economic policies; currency
fluctuations; foreign exchange control policies; taxation on income from sources
in such countries; expropriation or confiscatory taxation; limitation on the
removal of funds or other assets; political or social instability; the diverse
structure and liquidity of securities markets in various countries and regions;
policies of governments with respect to possible nationalization of their
industries; and other specific local political and economic considerations.
There may be less information publicly available about foreign companies, and
foreign companies may not be subject to uniform accounting, auditing and
financial reporting standards and requirements comparable to those of U.S.
companies. Investment decisions made in the context of the Portfolios'
objectives and policies involve the evaluation of opportunities and risks
presented by probable future currency relationships, especially during periods
of broad adjustments in such relationships.

The Emerging Markets Portfolio will invest, and the other Portfolios may invest,
in issuers domiciled in, or governments of, developing countries or emerging
markets as well as developed countries. Although there is no universally
accepted definition, a developing or emerging market country is generally
considered to be a country which is in the initial stages of its
industrialization cycle with a low per capita gross national product. Historical
experience

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indicates that the markets of developing countries have been more volatile than
the markets of developed countries; however, such markets can provide higher
rates of return to investors. The risks described above with respect to
investment in foreign securities generally may be exacerbated with respect to
investments in developing or emerging countries; however, such markets can
provide higher rates of return to investors. Investment in an emerging market
country may involve certain risks, including a less diverse and mature economic
structure, a less stable political system, an economy based on only a few
industries or dependent on international aid or development assistance, the
vulnerability to local or global trade conditions, extreme debt burdens, or
volatile inflation rates.

The performance of investments in securities denominated in a foreign currency
("non-dollar securities") will depend on, among other things, the strength of
the foreign currency against the dollar and the interest rate environment in the
country issuing the foreign currency. Absent other events which could otherwise
affect the value of non-dollar securities (such as a change in the political
climate or an issuer's credit quality), appreciation in the value of the foreign
currency generally can be expected to increase the value of a Portfolio's non-
dollar securities in terms of U.S. dollars. A rise in foreign interest rates or
decline in the value of foreign currencies relative to the U.S. dollar generally
can be expected to depress the value of the Portfolio's non-dollar securities.
Currencies are evaluated on the basis of fundamental economic criteria (e.g.,
relative inflation levels and trends, growth rate forecasts, balance of payments
status and economic policies) as well as technical and political data.

Additional costs could be incurred in connection with a Portfolio's foreign
investment activities. Foreign brokerage commissions are generally higher than
in the U.S. and a Portfolio will bear certain expenses in connection with its
foreign currency transactions. Increased custodian costs as well as
administrative difficulties (such as the applicability of foreign laws to
foreign custodians in various circumstances including bankruptcy, ability to
recover lost assets, expropriation, nationalization, record access, etc.) may be
associated with the maintenance of assets in foreign jurisdictions.

FOREIGN CURRENCY TRANSACTIONS -- Currency exchange rate fluctuations are a major
area of risk and opportunity for the Global Bond, Worldwide High Income, Global
Equities, International Diversified Equities, International Growth and Income
and Emerging Markets Portfolios, and is of some risk to the other Portfolios.
Each Portfolio (other than the Cash Management Portfolio) has the ability to
hold a portion of its assets in foreign currencies and to enter into forward
foreign currency exchange contracts. Each may also purchase and sell
exchange-traded futures contracts relating to foreign currency and purchase and
sell put and call options on currencies and futures contracts. A significant
portion of the Portfolios' currency transactions will be over-the-counter
transactions.

Each Portfolio may enter into forward foreign currency exchange contracts to
reduce the risks of fluctuations in exchange rates; however, these contracts
cannot eliminate all such risks and do not eliminate fluctuations in the prices
of the Portfolio's portfolio securities.

Each Portfolio may purchase and write put and call options on currencies for the
purpose of protecting against declines in the U.S. dollar value of foreign
portfolio securities and against increases in the U.S. dollar cost of foreign
securities to be acquired. The purchase of an option on currency may constitute
an effective hedge against exchange rate fluctuations; however, in the event of
exchange rate movements adverse to the Portfolio's position, the Portfolio may
forfeit the entire amount of the premium plus related transaction costs. As with
other kinds of option transactions, the writing of an option on currency will
constitute only a partial hedge, up to an amount of the premium received, and a
Portfolio could be required to purchase or sell currencies at disadvantageous
exchange rates, thereby incurring losses.

Each Portfolio that invests in foreign securities may utilize certain techniques
to attempt to enhance return, including forward foreign currency exchange
contracts, currency options and currency swaps. These techniques may be used
when the Subadviser anticipates that a foreign currency will appreciate or
depreciate in value, but securities denominated in that currency do not present
attractive investment opportunities or are not included in the Portfolio. Each
Portfolio may also use currency contracts and options to cross-hedge, which
involves selling or purchasing instruments on one currency to hedge against
changes in exchange rates for a different currency with a pattern of
correlation. To limit any leverage in connection with currency contract
transactions for hedging or non-hedging purposes, each Portfolio will segregate
cash or liquid securities in an amount sufficient to meet its payment
obligations in these transactions or otherwise "cover" the obligation. See the
Statement of Additional

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Information for more information regarding foreign currency transactions.

The Global Bond, Worldwide High Income, Asset Allocation, Global Equities,
International Diversified Equities, International Growth and Income, Real Estate
and Emerging Markets Portfolios may enter into currency swaps. Currency swaps
involve the exchange by the Portfolio with another party of their respective
rights to make or receive payments in specified currencies. Currency swaps
usually involve the delivery of the entire 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
to the swap will default on its contractual delivery obligations. The use of
currency swaps is a highly specialized activity which involves investment
techniques and risks different from those associated with ordinary portfolio
securities transactions. If the Adviser or a Subadviser is incorrect in its
forecasts of market values and currency exchange rates, the investment
performance of the respective Portfolio would be less favorable than it would
have been if this investment technique were not used.

OPTIONS ON SECURITIES AND SECURITIES INDICES -- Each Portfolio (other than the
Cash Management Portfolio) may write (sell) covered call and put options on any
securities in which it may invest. All call options written by each Portfolio
are covered, which means that the Portfolio will own the securities subject to
the option so long as the option is outstanding. All put options written by each
Portfolio are covered, which means that the Portfolio would have deposited with
its custodian cash or liquid securities with a value at least equal to the
exercise price of the put option. A Portfolio may also write call and put
options on any securities index composed of securities in which it may invest. A
Portfolio may purchase put and call options on any securities in which it may
invest or options on any securities index composed of securities in which it may
invest.

Each Portfolio (other than the Cash Management Portfolio) may purchase and write
options on the yield "spread," or yield differential between two securities.
Such transactions are referred to as "yield curve" options. In contrast to other
types of options, a yield curve option is based on the difference between the
yields of designated securities, rather than the prices of the individual
securities, and is settled through cash payments. Accordingly, a yield curve
option is profitable to the holder if this differential widens (in the case of a
call) or narrows (in the case of a put), regardless of whether the yields of the
underlying securities increase or decrease. All yield curve options written by a
Portfolio will be covered in the manner described above.

There is no assurance that a liquid secondary market on a domestic or foreign
options exchange will exist for any particular exchange-traded option or at any
particular time. If a Portfolio is unable to effect a closing purchase
transaction with respect to covered options it has written, the Portfolio will
not be able to sell the underlying securities or dispose of assets held in a
segregated account until the options expire or are exercised. Similarly, if a
Portfolio is unable to effect a closing sale transaction with respect to options
it has purchased, it would have to exercise the options in order to realize any
profit and will incur transaction costs upon the purchase or sale of the
underlying securities. In a closing purchase or sale transaction, a Portfolio
acquires a position that offsets and cancels an option position then held by the
Portfolio.

A Portfolio may purchase and sell both options that are traded (i) on U.S.
exchanges, (ii) on foreign exchanges and (iii) over-the-counter with broker-
dealers who make markets in these options. The ability to terminate
over-the-counter options is more limited than with exchange-traded options and
may involve the risk that broker-dealers participating in such transactions will
not fulfill their obligations. Until such time as the staff of the U.S.
Securities and Exchange Commission ("SEC") changes its position, each Portfolio
will treat purchased over-the-counter options and all assets used to cover
written over-the-counter options as illiquid securities. However, for options
written with primary dealers in U.S. government securities pursuant to an
agreement requiring a closing purchase transaction at a formula price, the
amount of illiquid securities may be calculated with reference to a formula
approved by the SEC staff.

The writing and purchase of options is a highly specialized activity which
involves investment techniques and risks different from those associated with
ordinary portfolio securities transactions. The use of options to increase total
return involves the risk of loss if the Adviser or Subadviser is incorrect in
its expectations of fluctuations in securities prices or interest rates. The
successful use of puts for hedging purposes depends in part on the ability of
the Adviser or Subadviser to predict future price fluctuations and the degree of
correlation between the options and securities markets. A Portfolio pays
brokerage commissions or spreads in connection with its options transactions.
The writing of options could

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significantly increase portfolio turnover rate of a Portfolio and, therefore,
associated brokerage commissions or spreads.

FUTURES CONTRACTS AND OPTIONS THEREON -- Futures contracts may be based on
various securities (including U.S. government securities), securities indices,
foreign currencies and other financial instruments and indices. The purchases of
futures contracts or call options thereon can serve as a long hedge, and the
sale of futures or the purchase of put options thereon can serve as a short
hedge. Writing covered call options on futures contracts can serve as a limited
short hedge, using a strategy similar to that used for writing covered call
options on securities and indices.

In addition, subject to regulations promulgated by the Commodity Futures Trading
Commission, a Portfolio may engage in futures transactions for non-hedging
purposes. For example, futures strategies can be used to manage the average
duration of a Portfolio. To shorten the average duration of a Portfolio, the
Portfolio may sell a futures contract or a call option thereon, or purchase a
put option on that futures contract; to lengthen the average duration of a
Portfolio, the Portfolio may buy a futures contract or a call option thereon.

No price is paid upon entering into a futures contract. Instead, at the
inception of a futures contract a Portfolio is required to deposit in a
segregated account with the Trust's custodian, in the name of the futures broker
through whom the transaction was effected, "initial margin" consisting of cash
or liquid securities, in an amount generally equal to 10% or less of the
contract value. Margin must also be deposited when writing a call option on a
futures contract, in accordance with applicable exchange rules. Unlike margin in
securities transactions, initial margin on futures contracts does not represent
a borrowing, but rather is in the nature of a performance bond or good-faith
deposit that is returned to the Portfolio at the termination of the transaction
if all contractual obligations have been satisfied. Under certain circumstances,
such as periods of high volatility, the Portfolio may be required by an exchange
to increase the level of its initial margin payment, and initial margin
requirements might be increased generally in the future by regulatory action.

Subsequent "variation margin" payments are made to and from the futures broker
daily as the value of the futures position varies, a process known as "marking
to market." Variation margin does not involve borrowing, but rather represents a
daily settlement of the Portfolio's obligations to or from a futures broker.
When a Portfolio purchases an option on a future, the premium paid plus
transaction costs is all that is at risk. In contrast, when a Portfolio
purchases or sells a futures contract or writes a call option thereon, it is
subject to daily variation margin calls that could be substantial in the event
of adverse price movements. If the Portfolio has insufficient cash to meet daily
variation margin requirements, it might need to sell securities at a time when
such sales are disadvantageous.

While transactions in futures contracts and options on futures may reduce
certain risks, such transactions themselves entail certain other risks. Thus,
while a Portfolio may benefit from the use of futures and options on futures,
unanticipated changes in interest rates, securities prices or currency exchange
rates may result in a poorer overall performance for the Portfolio than if it
had not entered into any futures contracts or options transactions. The loss
incurred by a Portfolio in writing options on futures is potentially unlimited
and may exceed the amount of the premium received.

In the event of an imperfect correlation between a futures position and a
portfolio position which is intended to be protected, the desired protection may
not be obtained and a Portfolio may be exposed to risk of loss. In addition, it
is not possible to hedge fully or perfectly against currency fluctuations
affecting the value of securities denominated in foreign currencies because the
value of such securities is also likely to fluctuate as a result of independent
factors not related to currency fluctuations. Therefore, perfect correlation
between a Portfolio's futures positions and portfolio positions will be
impossible to achieve.

Investment in futures contracts or options thereon may also involve liquidity
risks due, for example, to exchange-imposed daily trading limits that would
prevent the Portfolio from liquidating an unfavorable position. See the
Statement of Additional Information concerning futures and options contracts.

WARRANTS -- Certain Portfolios may invest in warrants which give the holder of
the warrant a right to purchase a given number of shares of a particular issue
at a specified price until expiration.

INVERSE FLOATERS -- The Corporate Bond, Asset Allocation and Emerging Markets
Portfolios may invest in leveraged inverse floating rate debt instruments
("inverse floaters"). The interest rate on an inverse floater resets in the
opposite direction from the market rate of interest to which the inverse floater
is indexed. An inverse floater may be considered to be leveraged to the extent
that its

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interest rate varies by a magnitude that exceeds the magnitude of the change in
the index rate of interest. The higher degree of leverage inherent in inverse
floaters is associated with greater volatility in their market values.
Accordingly, the duration of an inverse floater may exceed its stated final
maturity. Certain inverse floaters may be deemed to be illiquid securities for
purposes of a Portfolio's 15% limitation on investments in such securities.

=========================================================

MANAGEMENT

=========================================================

The Trust's Board of Trustees is responsible for the overall supervision of the
operations of the Trust and performs various duties imposed on trustees of
investment companies by the 1940 Act. The Board has retained others to provide
certain services to the Trust.

INVESTMENT ADVISER -- SAAMCo, located at The SunAmerica Center, 733 Third
Avenue, New York, New York 10017-3204, is a corporation organized in 1982 under
the laws of the State of Delaware. SAAMCo is an indirect, wholly-owned
subsidiary of Anchor National Life Insurance Company, which is an indirect
subsidiary of SunAmerica Inc., an investment grade financial services company
which has over $45 billion in assets. SAAMCo is engaged in providing investment
advice and management services to the Trust, other mutual funds and private
accounts. As of March 31, 1997, SAAMCo and its affiliates managed, advised
and/or administered assets of approximately $9.6 billion.

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, to provide investment advisory services, office space, and
other facilities for the management of the affairs of the Trust, and to pay the
compensation of certain officers of the Trust who are affiliated persons of
SAAMCo. The Agreement authorizes SAAMCo to retain one or more Subadvisers to
make the investment decisions for the Portfolios, and to place the purchase and
sale orders for the Portfolio transactions. SAAMCo has hired Subadvisers for
certain Portfolios, and manages the investments of other Portfolios itself
without the assistance of a Subadviser. SAAMCo, in consultation with one or more
SunAmerica affiliates, monitors the activities of the Subadvisers, and from time
to time will recommend the replacement of a Subadviser on the basis of
investment performance or other considerations.

SAAMCo may terminate any Subadvisory Agreement without shareholder approval.
Moreover, SAAMCo has obtained an exemptive order from the Securities and
Exchange Commission which would permit SAAMCo, subject to certain conditions, to
enter into Subadvisory Agreements relating to the Trust with Subadvisers
approved by the Board without obtaining shareholder approval. The exemptive
order would also permit SAAMCo, subject to the approval of the Board but without
shareholder approval, to employ new Subadvisers for new or existing Portfolios,
change the terms of particular Subadvisory Agreements or continue the employment
of existing Subadvisers after events that would otherwise cause an automatic
termination of a Subadvisory Agreement. Shareholders of a Portfolio have the
right to terminate such agreements for such Portfolio at any time by a vote of
the majority of the outstanding voting securities of such Portfolio.
Shareholders will be notified when SAAMCo intends to commence relying on the
exemptive order, and would be notified of any Subadviser changes effected
thereafter.

Purchase and sale 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 individual Portfolio Managers for both the Adviser and
Subadvisers are identified in the "Portfolio Management" subsection of this
section.

The annual rates of the investment advisory fees which apply to the Cash
Management Portfolio are .55% on the first $100 million of Assets, .50% on the
next $200 million and .45% on Assets over $300 million. The annual rates of the
investment advisory fees which apply to the Corporate Bond Portfolio are .70% on
the first $50 million of Assets, .60% on the next $100 million, .55% on the next
$100 million and .50% on Assets over $250 million. The annual rates of the
investment advisory fees which apply to both the Global Bond and Asset
Allocation Portfolios are .75% on the first $50 million of Assets, .65% on the
next $100 million, .60% on the next $100 million and .55% on Assets over $250
million. The annual rates of the investment advisory fees which apply to the
High-Yield Bond Portfolio are .70% on the first $50 million of Assets, .65% on
the next $100 million, .60% on the next $100 million, .55% on Assets over $250
million. The annual rate of the investment advisory fees which apply to each of
the Worldwide High Income and International Diversified Equities Portfolios are
1.00%. The annual rates of the investment advisory fees which apply to each of
the SunAmerica Balanced, Balanced/Phoenix Investment Counsel,

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Growth-Income, Alliance Growth, and Growth/Phoenix Investment Counsel Portfolios
are .70% on the first $50 million of Assets, .65% on the next $100 million, .60%
on the next $150 million, .55% on the next $200 million, and .50% on Assets over
$500 million. The annual rates of the investment advisory fees which apply to
the Utility and Federated Value Portfolios are .75% on the first $150 million of
Assets, .60% on the next $350 million and .50% on Assets over $500 million. The
annual rates of the investment advisory fees which apply to the Venture Value
and Real Estate Portfolios are .80% on the first $100 million of Assets, .75% on
the next $400 million and .70% on Assets over $500 million. Effective April 16,
1997, the annual rates of the investment advisory fees which apply to the Putnam
Growth Portfolio are .85% on the first $150 million of Assets, .80% on the next
$150 million and .70% on Assets over $300 million. The annual rates of the
investment advisory fees which apply to the International Growth and Income
Portfolio are 1.00% on the first $150 million of Assets, .90% on the next $150
million of Assets and .80% on Assets over $300 million. The annual rate of the
advisory fee which applies to the Emerging Markets Portfolio is 1.25% of Assets.
The annual rates of the investment advisory fees which apply to the Global
Equities Portfolio are .90% on the first $50 million of Assets, .80% on the next
$100 million, .70% on the next $150 million and .65% of Assets over $300
million. The annual rates of the investment advisory fees which apply to the
Aggressive Growth Portfolio are .75% on the first $100 million of Assets, .675%
on the next $150 million, .625% on the next $250 million and .60% on Assets over
$500 million. For the fiscal year ended November 30, 1996, the following
Portfolios paid to SAAMCo a fee equal to the following percentage of average
daily net assets: Cash Management Portfolio -- .54%, Global Bond
Portfolio -- .73%, Corporate Bond Portfolio -- .70%, High-Yield Bond
Portfolio -- .68%, Worldwide High Income Portfolio -- 1.00%, Balanced/Phoenix
Investment Counsel Portfolio -- .70%, Asset Allocation Portfolio -- .65%,
Growth-Income Portfolio -- .64%, Venture Value Portfolio -- .76%, Alliance
Growth Portfolio -- .64%, Growth/Phoenix Investment Counsel Portfolio -- .66%,
Putnam Growth Portfolio -- .82%, Global Equities Portfolio -- .80%, and
International Diversified Equities Portfolio -- 1.00%. The advisory fees for the
Putnam Growth Portfolio for the fiscal year ended November 30, 1996 were
calculated at the annual rates set forth in the Statement of Additional
Information under "Investment Advisory and Management Agreement -- Advisory
Fees." For the period June 3, 1996 through November 30, 1996, the following
Portfolios paid to SAAMCo a fee equal to the following percentage of average
daily net assets: SunAmerica Balanced Portfolio -- .70%, Utility
Portfolio -- .75%, Federated Value Portfolio -- .75% and Aggressive Growth
Portfolio -- .75%.

For certain Portfolios, the Adviser has voluntarily agreed to waive fees or
reimburse expenses, if necessary, to keep annual operating expenses at or below
the lesser of the 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%, Aggressive Growth
Portfolio -- 1.05%, Real Estate Portfolio -- 1.30%, International Growth and
Income Portfolio -- 1.75% and Emerging Markets Portfolio -- 2.00%. The Adviser
also may voluntarily waive or reimburse additional amounts to increase the
investment return to a Portfolio's investors. The Adviser may terminate all such
waivers and/or reimbursements at any time. Further, any waivers or
reimbursements made by the Adviser (after June 3, 1996) 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 term "Assets" means the average daily net assets of the Portfolio. The
investment advisory fees are accrued daily and paid monthly.

SUBADVISERS -- 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.

The Subadviser for the Growth-Income, Alliance Growth and Global Equities
Portfolios is Alliance Capital Management L.P. Alliance is a Delaware limited
partnership with principal offices at 1345 Avenue of the Americas, New York, New
York 10105. Alliance is a major international investment manager, supervising
client accounts with assets totalling over $183 billion as of March 31, 1997.
Alliance serves its clients, who primarily are major corporate employee benefit
funds, investment companies, foundations, endowment funds and public employee
retirement systems. As of March 31, 1997, Alliance was retained as an investment
manager of

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<PAGE> 36

employee benefit fund assets for 33 of the Fortune 100 companies.

The portion of the annual investment advisory fees received by SAAMCo which is
paid to Alliance with respect to the Growth-Income Portfolio and the Alliance
Growth Portfolio is .35% on the first $50 million of Assets, .30% on the next
$100 million, .25% on the next $150 million, .20% on the next $200 million and
.15% on Assets over $500 million; and, with respect to the Global Equities
Portfolio, .50% on the first $50 million of Assets, .40% on the next $100
million, .30% on the next $150 million and .25% on Assets over $300 million. For
the fiscal year ended November 30, 1996, SAAMCo paid to Alliance, with respect
to each Portfolio subadvised by Alliance, a fee equal to the following
percentage of average daily net assets: Growth-Income Portfolio -- .29%,
Alliance Growth Portfolio -- .29%, and Global Equities Portfolio -- .40%.

The Subadviser of the Venture Value and Real Estate Portfolios is Davis Selected
Advisers, L.P., ("Davis Selected") 124 East Marcy Street, Sante Fe, New Mexico
87501. Venture Advisers, Inc. is the sole General Partner of the limited
partnership, which, in turn, is controlled by Shelby M.C. Davis. Davis Selected
provides advisory services to other investment companies. As of March 31, 1997,
Davis Selected had over $7.9 billion of assets under management. The Subadvisory
Agreement with Davis Selected provides that Davis Selected may delegate any of
its responsibilities under the agreement to one of its affiliates, including
Davis Selected Advisers - NY, Inc., a wholly-owned subsidiary; however Davis
Selected remains ultimately responsible (subject to supervision by SAAMCo) for
the assets of the Portfolios allocated to it.

The portion of the annual investment advisory fee received by SAAMCo which is
paid to Davis Selected with respect to the Venture Value and Real Estate
Portfolios is .45% on the first $100 million of Assets, .40% on the next $400
million and .35% on Assets over $500 million. For the fiscal year ended November
30, 1996, SAAMCo paid to Davis Selected, with respect to the Venture Value
Portfolio, a fee equal to .42% of the Portfolio's average daily net assets.

The Subadviser for the Corporate Bond, Utility and Federated Value Portfolios is
Federated Investment Counseling, Federated Investors Tower, 1001 Liberty Avenue,
Pittsburgh, Pennsylvania 15222-3779. Federated is a wholly owned subsidiary of
Federated Investors, and together with other subsidiaries of Federated Investors
serves as investment adviser to a number of investment companies and private
accounts. With over $115 billion invested across more than 260 funds under
management and/or administration as of March 31, 1997, Federated Investors is
one of the largest mutual fund investment managers in the United States.

The portion of the annual investment advisory fees received by SAAMCo which is
paid to Federated with respect to the Corporate Bond Portfolio is .30% on the
first $25 million of Assets, .25% on the next $25 million, .20% on the next $100
million and .15% on Assets over $150 million; and with respect to each of the
Utility and Federated Value Portfolios is .55% on the first $20 million of
Assets, .35% on the next $30 million, .25% on the next $100 million, .20% on the
next $350 million and .15% on Assets over $500 million. For the fiscal year
ended November 30, 1996, SAAMCo paid to Federated, with respect to each
Portfolio subadvised by Federated, a fee equal to the following percentage of
average daily net assets: Utility -- .55%, and Federated Value -- .55%. For the
period June 3, 1996 through November 30, 1996, SAAMCo paid to Federated, with
respect to the Corporate Bond Portfolio, a fee equal to .30% of average daily
net assets.

The Subadviser for the Asset Allocation Portfolio is GSAM, a separate operating
division of Goldman, Sachs & Co. The Subadviser for the Global Bond Portfolio is
GSAM-International, an affiliate of Goldman, Sachs & Co. Goldman, Sachs & Co. is
a New York limited partnership with its principal offices at 85 Broad Street,
New York, New York 10004. GSAM serves a wide range of clients including private
and public pension funds, endowments, foundations, banks, thrifts, insurance
companies, corporations, and private investors and family groups. The asset
management services are divided into the following areas: institutional fixed-
income investment management; global currency management; institutional equity
investment management; fund management; money market mutual fund management and
administration; and private asset management. As of March 24, 1997, GSAM,
together with its affiliates, acted as investment adviser, administrator or
distributor for approximately $104.9 billion in assets. GSAM-International was
organized in 1990 as a company with limited liability under the laws of England.
It is authorized to conduct investment advisory business in the United Kingdom
as a member of the Investment Management Regulatory Organisation Limited, a
United Kingdom self-regulatory organization. GSAM and GSAM-International are
able to draw on the research and market expertise of Goldman, Sachs & Co. in
making investment decisions for the Portfolios for which they act as Subadviser.
In performing their

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<PAGE> 37

subadvisory services, GSAM and GSAM-International, while remaining ultimately
responsible for the management of the Portfolio, are able to draw upon the
research and expertise of their affiliate offices, for portfolio decisions and
management with respect to certain portfolio securities.

The portion of the annual investment advisory fees received by SAAMCo which is
paid to GSAM with respect to the Asset Allocation Portfolio is .40% on the first
$50 million of Assets, .30% on the next $100 million, .25% on the next $100
million and .20% on Assets over $250 million. For the fiscal year ended November
30, 1996, SAAMCo paid to GSAM, with respect to each Portfolio subadvised by
GSAM, a fee equal to the following percentage of average daily net assets:
Corporate Bond -- .34%, and Asset Allocation -- .30%. The portion of the annual
investment advisory fees received by SAAMCo which is paid to GSAM-International
with respect to the Global Bond Portfolio is .40% on the first $50 million of
Assets, .30% on the next $100 million, .25% on the next $100 million and .20% on
Assets over $250 million. For the fiscal year ended November 30, 1996, SAAMCo
paid to GSAM-International, with respect to the Global Bond Portfolio, a fee
equal to .38% of the Portfolio's average daily net assets.

The Subadviser of the Worldwide High Income and International Diversified
Equities Portfolios is Morgan Stanley Asset Management Inc., 1221 Avenue of the
Americas, New York, New York 10020. MSAM is a wholly owned subsidiary of Morgan
Stanley Group Inc., and provides a broad range of portfolio management services
to customers in the United States and abroad. As of March 31, 1997, MSAM,
together with its affiliated investment management companies, had approximately
$170 billion of assets under management (inclusive of assets under fiduciary
advisory control).

On February 5, 1997, Morgan Stanley Group, Inc. and Dean Witter, Discover & Co.
announced that they had entered into an Agreement and Plan of Merger to form
Morgan Stanley, Dean Witter, Discover & Co. Morgan Stanley Group, Inc. is the
direct parent of MSAM, subadviser to the Worldwide High Income and International
Diversified Equities Portfolios. It is currently anticipated that the
transaction will close in mid-1997. Thereafter, MSAM will be a subsidiary of
Morgan Stanley, Dean Witter, Discover & Co. Dean Witter, Discover & Co. is a
financial services company with three major businesses: full service brokerage,
credit services and asset management.

The portion of the annual investment advisory fee received by SAAMCo which is
paid to MSAM with respect to each of the Worldwide High Income and International
Diversified Equities Portfolios is .65% on Assets up to $350 million and .60% on
Assets thereafter. For the fiscal year ended November 30, 1996, SAAMCo paid to
MSAM, with respect to the International Diversified Equities Portfolio and
Worldwide High Income Portfolio, a fee equal to .65% of each Portfolio's average
daily net assets.

The Subadviser of the Growth/Phoenix Investment Counsel and Balanced/Phoenix
Investment Counsel Portfolios is Phoenix Investment Counsel, Inc. ("Phoenix"),
an indirect wholly-owned subsidiary of Phoenix Duff & Phelps Corporation.
Phoenix is located at 56 Prospect Street, Hartford, CT 06115. Phoenix was
originally organized in 1932 as John P. Chase, Inc. and has been engaged in the
management of mutual funds since 1958. As of March 31, 1997, Phoenix Duff &
Phelps through its affiliated companies, had over $32 billion in total assets
under management for all its clients. Phoenix, the subadviser, had in excess of
$19 billion under management as of March 31, 1997.

The portion of the annual investment advisory fees received by SAAMCo which is
paid to Phoenix with respect to each of the Balanced/Phoenix Investment Counsel
and Growth/Phoenix Investment Counsel Portfolios is .35% on the first $50
million of Assets, .30% on the next $100 million; .25% on the next $150 million;
.20% on the next $200 million and .15% on Assets over $500 million. For the
fiscal year ended November 30, 1996, SAAMCo paid to Phoenix, with respect to the
Balanced/Phoenix Investment Counsel and Growth/Phoenix Investment Counsel
Portfolios, a fee equal to .35% and .31%, respectively, of each Portfolio's
average daily net assets.

The Subadviser of the Putnam Growth, International Growth and Income and
Emerging Markets Portfolios is Putnam Investment Management, Inc., a
Massachusetts corporation with principal offices at One Post Office Square,
Boston, Massachusetts. Putnam has been managing mutual funds since 1937 and
serves as investment adviser to the funds in the Putnam Family. Putnam and its
affiliates managed approximately $187 billion as of April 15, 1997. Putnam is a
subsidiary of Putnam Investments, Inc., which is wholly owned by Marsh &
McLennan Companies, Inc., a publicly owned holding company whose principal
businesses are international insurance and reinsurance brokerage, employee
benefit consulting and investment management.

The portion of the annual investment advisory fees received by SAAMCo which is
paid to Putnam with respect to the Putnam Growth Portfolio is .50% on

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<PAGE> 38

the first $150 million of Assets, .45% on the next $150 million of Assets and
.35% on Assets over $300 million. Putnam became the Subadviser to the Putnam
Growth Portfolio on April 15, 1997. For the fiscal year ended November 30, 1996,
SAAMCo paid to the Portfolio's predecessor subadviser a fee equal to .48% of the
Portfolio's average daily net assets. See "Investment Advisory and Management
Agreement -- Advisory Fees" in the Statement of Additional Information for the
annual rates applicable with respect to the predecessor subadvisers. The portion
of the annual investment advisory fees received by SAAMCo which is paid to
Putnam with respect to the International Growth and Income Portfolio is .65% on
the first $150 million of Assets, .55% on the next $150 million of Assets and
.45% on Assets over $300 million. The portion of the annual investment advisory
fees received by SAAMCo which is paid to Putnam with respect to the Emerging
Markets Portfolio is 1.00% on the first $150 million of Assets, .95% on the next
$150 million of Assets and .85% on Assets over $300 million.

PORTFOLIO MANAGEMENT -- The following individuals are primarily responsible for
the day-to-day management of the particular Portfolios as indicated below.

SAAMCo's Fixed Income Investment Team headed by P. Christopher Leary has been
responsible for managing the CASH MANAGEMENT PORTFOLIO, HIGH-YIELD BOND
PORTFOLIO and the fixed-income component of the SUNAMERICA BALANCED PORTFOLIO
since October 1996. Mr. Leary is a Senior Vice President of SAAMCo and has been
a portfolio manager with the firm since 1990. John W. Risner has supervisory
responsibility for the High-Yield Bond Portfolio. He is a Vice President of
SAAMCo and joined the firm in February 1997. Prior to joining SAAMCo, Mr. Risner
served as Senior Portfolio Manager of the Value Line Aggressive Income Trust and
the Value Line Convertible Fund. Audrey L. Snell has served as the portfolio
manager for the AGGRESSIVE GROWTH PORTFOLIO since the inception date of June 3,
1996. Ms. Snell is a Senior Vice President of SAAMCo and has been a portfolio
manager with the firm since 1991.

Joseph M. Balestrino and Mark E. Durbiano serve as co-portfolio managers of the
CORPORATE BOND PORTFOLIO. Mr. Balestrino joined Federated Investors in 1986 and
has been a Vice President of Federated Advisers since 1995. Mr. Balestrino
served as an Assistant Vice President of Federated Advisers from 1991 to 1995.
Mr. Balestrino is a Chartered Financial Analyst. Mr. Durbiano joined Federated
Investors in 1982 and has been a Senior Vice President of Federated Advisers
since January 1996. From 1988 through 1995, Mr. Durbiano was a Vice President of
Federated Advisers. Mr. Durbiano is a Chartered Financial Analyst.

Stephen C. Fitzgerald and Andrew F. Wilson serve as co-portfolio managers of the
GLOBAL BOND PORTFOLIO. Mr. Fitzgerald has served as co-portfolio manager since
the inception date of July 1, 1993 and Mr. Wilson has served as co-portfolio
manager since December 1, 1995. Mr. Fitzgerald, a Vice President in the London
office, joined GSAM-International in 1992. Prior to 1992, he spent two years
managing multi-currency, fixed-income and balanced portfolios at Invesco MIM
Limited, where he was a senior member of the derivative products group. Mr.
Wilson, a Vice President in the London office, joined GSAM-International in
December 1995. Prior to joining GSAM-International, Mr. Wilson spent three years
as an Assistant Director of Rothschild Asset Management, where he was
responsible for managing global and international bond portfolios, with specific
focus on the U.S., Canadian, Australian and Japanese economies. Prior to his
employment at Rothschild, Mr. Wilson spent seven years at the Reserve Bank of
New Zealand, his most recent position a Trading Manager of Foreign Reserves
Management. Mr. Wilson's employment at Reserve Bank of New Zealand also included
a two year assignment to the foreign investment unit at the Bank of England in
London.

Robert Angevine and Paul Ghaffari have served as co-portfolio managers of the
WORLDWIDE HIGH INCOME PORTFOLIO since the inception date of October 28, 1994.
Mr. Angevine is a principal of Morgan Stanley & Co. Incorporated ("Morgan
Stanley") and a portfolio manager of MSAM's high yield investments. He has been
with the firm since 1988. Mr. Ghaffari is a managing director of Morgan Stanley
and a portfolio manager of MSAM's emerging market debt instruments. He has been
with the firm since 1983.

Stanton J. Feeley has served as the portfolio manager for the SUNAMERICA
BALANCED PORTFOLIO since the inception date of June 3, 1996. Mr. Feeley has
served as Executive Vice President and Chief Investment Officer of SAAMCo since
February 1992. Prior to joining SAAMCo, Mr. Feeley was a Senior Portfolio
Manager for Delaware Management Company, Inc.

C. Edwin Riley, Jr. has served as the portfolio manager of the BALANCED/PHOENIX
INVESTMENT COUNSEL PORTFOLIO since November 17, 1995. Prior to joining Phoenix
Investment Counsel in August 1995, Mr. Riley held the position of Senior Vice
President

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and Director of Equity Management at Nationsbank Investment Management.

Ronald E. Gutfleish, G. Lee Anderson and Eileen A. Aptman serve as co-portfolio
managers of the equity portion of the ASSET ALLOCATION PORTFOLIO. Mr. Gutfleish
has served in this capacity since February 1, 1995. Mr. Anderson and Ms. Aptman
have served as co-portfolio managers since December 1, 1996. Mr. Gutfleish is a
Vice President of GSAM, which he joined in 1993. Prior to 1993, he was a
principal of Sanford C. Bernstein & Co., Inc., in its Investment Management
Research Department. Mr. Anderson, is a Vice President of GSAM, which he joined
in 1992. Ms. Aptman is a Vice President of GSAM, which she joined in 1993. Prior
to 1993, she was an equity analyst at Delphi Management. Jonathan A. Beinner and
Richard C. Lucy have served as co-portfolio managers for the fixed-income
portion of the ASSET ALLOCATION PORTFOLIO since its inception date of July 1,
1993. Mr. Beinner is a Vice President of GSAM, where he joined the Funds Group
in 1990. Mr. Lucy is a Vice President of GSAM, where he joined the Funds Group
in 1992 after spending nine years managing fixed-income assets at Brown Brothers
Harriman & Co.

Linda A. Duessel has served as portfolio manager of the UTILITY PORTFOLIO since
June 1996. Ms. Duessel joined Federated Investors in 1991, and has been a Vice
President of Federated Advisers since 1995. She was an Assistant Vice President
of Federated Advisers from 1991 until 1995. Ms. Duessel is a Certified Public
Accountants and a Chartered Financial Analyst.

Michael R. Baldwin and Bruce W. Calvert have served as co-portfolio managers for
the GROWTH-INCOME PORTFOLIO since the inception date of February 9, 1993 and
Stephen W. Pelensky has served as a co-portfolio manager for the Portfolio since
June 30, 1995. Mr. Baldwin is a Vice President of Alliance Capital Management
and joined the company in 1989. Mr. Calvert is Vice Chairman and Chief
Investment Officer, and joined Alliance Capital Management in 1973. Mr. Pelensky
is a Vice President of Alliance Capital Management and joined the company in
1994. Prior to joining Alliance Capital Management, Mr. Pelensky was a portfolio
manager and analyst with Affinity Investment Advisors and BEA Associates.

Peter R. Anderson and Scott B. Schermerhorn serve as co-portfolio managers of
the FEDERATED VALUE PORTFOLIO. Mr. Anderson joined Federated Investors in 1972
as, and is presently, a Senior Vice President of Federated Advisers. Mr.
Anderson is a Chartered Financial Analyst. Mr. Schermerhorn joined Federated
Investors in 1996 as a Vice President of Federated Advisers. From 1990 through
1996, Mr. Schermerhorn was a Senior Vice President and Senior Investment Officer
at J. W. Seligman & Co., Inc.

Christopher C. Davis serves as portfolio manager of the VENTURE VALUE PORTFOLIO.
He has been employed by Davis Selected since September, 1989 as a research
analyst, assistant portfolio manager, co-portfolio manager, and portfolio
manager, working side by side with Shelby M.C. Davis. Andrew A. Davis is the
primary portfolio manager of the REAL ESTATE PORTFOLIO. He is a Vice President
of Davis Series, Inc. and a Co-President of Davis Selected's General Partner.
Until February 1993, he was the Vice President and head of convertible research
at PaineWebber, Incorporated. Shelby M.C. Davis previously served as
co-portfolio manager of the Venture Value Portfolio. He will continue to consult
with Christopher and Andrew Davis in his capacity as Chief Investment Officer of
Davis Selected.

James G. Reilly has served as the portfolio manager for the ALLIANCE GROWTH
PORTFOLIO since the inception date of February 9, 1993. Mr. Reilly is a Senior
Vice President of Alliance Capital Management and joined the company in 1984.

Van Harissis has served as the portfolio manager of the GROWTH/PHOENIX
INVESTMENT COUNSEL PORTFOLIO since May 1996. Mr. Harissis is a Vice President of
Phoenix Investment Counsel, Inc. and has been with the company since August
1995. Prior to joining Phoenix Investment Counsel, Inc., Mr. Harissis held the
position of Senior Portfolio Manager at Howe and Rusling, Incorporated and had
been with that firm since 1990.

C. Beth Cotner, Richard England, Manuel H. Weiss and David Santos serve as
co-portfolio managers of the PUTNAM GROWTH PORTFOLIO. Ms. Cotner, a Senior Vice
President, has been an investment professional with Putnam since 1995. Prior to
that time, she was an Executive Vice President of Kemper Financial Services. Mr.
England, a Senior Vice President, has been an investment professional with
Putnam since 1992. Prior to that time, he was an investment officer with Aetna
Equity Investors. Mr. Weiss, a Senior Vice President, has been an investment
professional with Putnam since 1987. Mr. Santos, a Vice President, has been an
investment professional with Putnam since 1986. Omil Kamshad serves as portfolio
manager of the INTERNATIONAL GROWTH AND INCOME PORTFOLIO. Mr. Kamshad, Senior
Vice President, was Director of Investments at Lombard Odier International prior
to January 1996 and Director at Baring Asset Management Company prior

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to April 15, 1995. Thomas R. Haslett, Managing Director, and J. Peter Grant,
Senior Vice President, serve as co-portfolio managers of the EMERGING MARKETS
PORTFOLIO. Mr. Haslett has been an investment professional with Putnam since
1996. Prior to December 1996, he was a Managing Director of Montgomery Asset
Management, Ltd. Mr. Grant has been an investment professional with Putnam since
1973.

Barton Biggs has served as a co-portfolio manager for the INTERNATIONAL
DIVERSIFIED EQUITIES PORTFOLIO since the inception date of October 28, 1994 and
Francine Bovich and Ann Thivierge have served as co-portfolio managers of the
Portfolio since July 1, 1995. Mr. Biggs is Chairman and Chief Investment Officer
of MSAM and a Director of Morgan Stanley Group, Inc. He joined Morgan Stanley in
1973 as a General Partner and Managing Director and is a member of Morgan
Stanley Group, Inc.'s Board of Directors and of the Management Committee. Ms.
Bovich is responsible for product development, portfolio management and
communication of asset allocation strategy. She joined MSAM, as a Principal in
1993. Prior to joining MSAM, Ms. Bovich was a Principal and Executive Vice
President of Westwood Management Corp. and was with the firm from 1986 to 1993.
Ms. Thivierge is a Principal of MSAM and joined the company in 1986 as an
Analyst. From 1992 through 1996 she served as a Vice President of Morgan Stanley
Asset Management Inc.

CUSTODIAN, TRANSFER AGENT AND DIVIDEND PAYING AGENT -- State Street Bank and
Trust Company ("State Street"), 225 Franklin Street, Boston, Massachusetts
02110, is the Trust's custodian, transfer agent and dividend paying agent. State
Street maintains custody of the Trust's securities and cash and the records of
each shareholder's account. State Street also performs other related shareholder
service functions.

=========================================================
PORTFOLIO TURNOVER AND BROKERAGE
=========================================================

All Portfolios effect portfolio transactions without regard to the length of
time particular investments have been held. Under certain market conditions, the
investment policies of the Portfolios may result in high portfolio turnover. The
portfolio turnover rates for the Portfolios (other than the Real Estate
International Growth and Income and Emerging Markets Portfolios) are contained
in the section entitled "Financial Highlights." The portfolio turnover rates for
the International Growth and Income, Real Estate and Emerging Markets Portfolios
are not expected to exceed 150%, 50%, and 150%, respectively. High portfolio
turnover involves correspondingly greater brokerage commissions, to the extent
such commissions are payable, and other transaction costs that are borne
directly by the Portfolio involved. Higher turnover rates reflect an increased
rate of realization of gains and losses by the Portfolio, which would normally
affect the taxable income of the Portfolio's shareholders. Where the shareholder
is an insurance company separate account funding variable annuity contracts,
qualified as such under the Code; however, the contractowners are not currently
charged with such income or losses except to the extent provided under the Code
(normally when distributions under the contracts are made). Corporate bonds and
U.S. government securities are generally traded on a net basis and usually
neither brokerage commissions nor transfer taxes are involved.

Broker-dealers involved in the execution of portfolio transactions on behalf of
the Trust are selected on the basis of their professional capability and the
value and quality of their services. In selecting such broker-dealers, the
Adviser and Subadvisers will consider various relevant factors, including, but
not limited to, the size and type of the transaction; the nature and character
of the markets in which the security can be purchased or sold; the execution
efficiency, settlement capability, and financial condition of the broker-dealer;
the broker-dealer's execution services rendered on a continuing basis; and the
reasonableness of any commissions. The Adviser or a Subadviser also may select
broker-dealers which provide it with research services and may cause a Portfolio
to pay such broker-dealers commissions which exceed those which other broker-
dealers may have charged, if in the Adviser's or Subadviser's view the
commissions are reasonable in relation to the value of the brokerage and/or
research services provided by the broker-dealer. Further, the Adviser or a
Subadviser may effect portfolio transactions through broker-dealer affiliates of
the Trust, Adviser or Subadvisers.

=========================================================
DIVIDENDS, DISTRIBUTIONS AND
FEDERAL TAXES
=========================================================

Under the Code each Portfolio is treated as a separate regulated investment
company providing qualification requirements are met. To qualify as a regulated
investment company, a Portfolio must, among other things, (a) derive at least
90% of its gross income from dividends, interest, payments with respect to
securities loans, gains from the sale or other disposition

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<PAGE> 41

of stocks, securities or foreign currencies, or other income (including but not
limited to gains from options, futures or forward contracts) derived with
respect to its business of investing in such stocks, securities or currencies;
(b) derive less than 30% of its gross income from the sale or other disposition
of stocks or securities or certain foreign currencies (or options, futures or
forward contracts thereon) held less than three months ("short-short gains");
provided, however, that foreign currency gains, including those derived from
options, futures and forward contracts, will not, in any event, be characterized
as short-short gains if they are directly related to the registered investment
company's investments in stocks, options or futures thereon; and (c) diversify
its holdings so that, at the end of each fiscal quarter, (i) at least 50% of the
market value of the Portfolio's assets is represented by cash, U.S. government
securities and other securities limited in respect of any one issuer to 5% of
the Portfolio's assets and to not more than 10% of the voting securities of such
issuer, and (ii) not more than 25% of the value of its assets is invested in the
securities of any one issuer (other than U.S. government securities). Each
Portfolio is intended to meet these qualification requirements.

The restriction on short-short gains may require a Portfolio's Subadviser to
defer closing out a position in a security or financial contract at the most
opportunistic time.

So long as a Portfolio qualifies as a regulated investment company, such
Portfolio will not be subject to federal income tax on the net investment
company taxable income or net capital gains distributed to shareholders as
ordinary income dividend or capital gains dividends. It is the policy of each
Portfolio to distribute to its shareholders substantially all of its ordinary
income and net long-term capital gains realized during each fiscal year. All
distributions are reinvested in shares of the Portfolio at net asset value
unless the transfer agent is instructed otherwise.

Each Portfolio of the Trust is also subject to variable contract asset
diversification regulations prescribed by the U.S. Treasury Department under the
Code. These regulations generally provide that, as of the end of each calendar
quarter or within 30 days thereafter, no more than 55% of the total assets of
the Portfolio may be represented by any one investment, no more than 70% by any
two investments, no more than 80% by any three investments, and no more than 90%
by any four investments. For this purpose, all securities of the same issuer are
considered a single investment, but each U.S. agency or instrumentality is
treated as a separate issuer. If a Portfolio fails to comply with these
regulations, the contracts invested in that Portfolio will not be treated as
annuity, endowment or life insurance contracts for tax purposes. The Real Estate
Portfolio may invest in REITs that hold residual interests in real estate
mortgage investment conduits ("REMICs"). Under Treasury regulations that have
not yet been issued, but may apply retroactively, a portion of the Portfolio's
income from a REIT that is attributable to the REIT's residual interest in a
REMIC (referred to in the Code as an "excess inclusion") will be subject to
federal income tax. These regulations are also expected to provide that excess
inclusion income of a regulated investment company, such as the Portfolio, will
be allocated to shareholders of the regulated investment company in proportion
to the dividends received by such shareholders, with the same consequences as if
the shareholders held the related REMIC residual interest directly.

A "passive foreign investment company" (PFIC) is a foreign corporation that, in
general, meets either of the following tests: (a) at least 75% of its gross
income is passive or (b) an average of at least 50% of its assets produce, or
are held for the production of, passive income. If a Portfolio acquires and
holds stock in a PFIC beyond the end of the year of its acquisition, the
Portfolio will be subject to federal income tax on a portion of any "excess
distribution" received on the stock or of any gain from disposition of the stock
(collectively PFIC income), plus interest thereon, even if the Portfolio
distributes the PFIC income as a taxable dividend to its shareholders. The
balance of the PFIC income will be included in the Portfolio's investment
company taxable income and, accordingly, will not be taxable to it to the extent
that income is distributed to its shareholders. Proposed Treasury regulations
provide that the Portfolio may make a "mark-to-market" election with respect to
any stock it holds of a PFIC. If the election is in effect, at the end of the
Portfolio's taxable year, the Portfolio will recognize the amount of gains, if
any, with respect to PFIC stock. No loss will be recognized on PFIC stock.
Alternatively, the Portfolio may elect to treat any PFIC in which it invests as
a "qualified electing fund," in which case, in lieu of the foregoing tax and
interest obligation, the Portfolio will be required to include in income each
year its pro rata share of the qualified electing fund's annual ordinary
earnings and net capital gain, even if they are not distributed to the
Portfolio; those amounts would be subject to the distribution requirements
applicable to the Portfolio described above. It may be very difficult, if not
impossible, to make this election because of certain requirements thereof.

38
<PAGE> 42

See the applicable contract prospectus for information regarding the federal
income tax treatment of the contracts and distributions to the separate
accounts.

=========================================================
PRICE OF SHARES
=========================================================

The Portfolios are open for business on any day the New York Stock Exchange
("NYSE") is open for regular trading. Shares of each Portfolio of the Trust are
sold at the net asset value per share calculated daily at the close of regular
trading on the NYSE (generally, 4:00 p.m., Eastern time). Each Portfolio
calculates its net asset value per share by dividing the total value of its net
assets by the number of shares outstanding. Assets are generally valued at their
market value, where available, except that short-term securities with 60 days or
less to maturity are valued on an amortized cost basis. For a complete
description of the procedures involved in valuing various Trust assets, see the
Statement of Additional Information.

=========================================================
PURCHASES AND REDEMPTIONS
=========================================================

Shares of the Trust currently are offered only to separate accounts of Anchor
National Life Insurance Company and First SunAmerica Life Insurance Company. At
present, Trust shares are used as the investment vehicle for annuity contracts
only. The Life Companies may issue variable life contracts that also will use
the Trust as the underlying investment. The offering of Trust shares to variable
annuity and variable life separate accounts is referred to as "mixed funding."
It may be disadvantageous for variable annuity separate accounts and variable
life separate accounts to invest in the Trust simultaneously. Although neither
the Life Companies nor the Trust currently foresees such disadvantages either to
variable annuity or variable life contract owners, the Board of Trustees of the
Trust, based upon information provided by the Life Companies, would monitor
events in order to determine, should a material conflict arise, what action, if
any, need be taken in response thereto. Shares of the Trust may be offered to
separate accounts of other life insurance companies which are affiliates of the
Life Companies.

All shares may be purchased or redeemed by the separate accounts without any
sales or redemption charge at the next computed net asset value. Purchases and
redemptions are made subsequent to corresponding purchases and redemptions of
units of the separate accounts without delay.

Except in extraordinary circumstances and as permissible under the 1940 Act, the
redemption proceeds are paid on or before the seventh day following the request
for redemption.

=========================================================
SHAREHOLDER VOTING RIGHTS
=========================================================

All shares of the Trust have equal voting rights and may be voted in the
election of trustees and on other matters submitted to the vote of the
shareholders. Shareholders' meetings ordinarily will not be held unless required
by the 1940 Act. As permitted by Massachusetts law, there normally will be no
shareholders' meetings for the purpose of electing trustees unless and until
such time as fewer than a majority of the trustees holding office have been
elected by shareholders. At that time, the trustees then in office will call a
shareholders' meeting for the election of trustees. The trustees must call a
meeting of shareholders for the purpose of voting upon the removal of any
trustee when requested to do so by the record holders of 10% or more of the
outstanding shares of the Trust. A trustee may be removed after the holders of
record of not less than two-thirds of the outstanding shares have declared that
the trustee be removed either by declaration in writing or by votes cast in
person or by proxy. Except as set forth above, the trustees shall continue to
hold office and may appoint successor trustees, provided that immediately after
the appointment of any successor trustee, at least two-thirds of the trustees
have been elected by the shareholders. Shares do not have cumulative voting
rights. Thus, holders of a majority of the shares voting for the election of
trustees can elect all the trustees. No amendment may be made to the Declaration
of Trust without the affirmative vote of a majority of the outstanding shares of
the Trust, except that amendments to conform the Declaration to the requirements
of applicable federal laws or regulations or the regulated investment company
provisions of the Code may be made by the trustees without the vote or consent
of shareholders. If not terminated by the vote or written consent of a majority
of its outstanding shares, the Trust will continue indefinitely.

A change in the fundamental investment restrictions of a Portfolio requires the
vote of a "majority of the outstanding voting securities" of that Portfolio.
This term is defined in the 1940 Act and explained in the Statement of
Additional Information.

In matters affecting only a particular Portfolio, the matter shall have been
effectively acted upon by a vote of that Portfolio even though: (1) the matter
has not been approved by a vote of any other

39
<PAGE> 43

Portfolio; or (2) the matter has not been approved by a vote of the Trust as a
whole.

The Life Companies' separate accounts, as shareholders of the Portfolios, have
the right to vote each Portfolio's shares at any meeting of shareholders.
However, the separate account will vote each Portfolio's shares in accordance
with instructions received from contract owners. See the applicable contract
prospectus for information regarding contract owners' voting rights.

=========================================================

INDEPENDENT ACCOUNTANTS

=========================================================

Price Waterhouse LLP has been selected as independent accountants for the Trust.

=========================================================
SHAREHOLDER INQUIRIES
=========================================================

Shareholder inquiries should be directed to Anchor National Life Insurance
Company or First SunAmerica Life Insurance Company, Service Center, P.O. Box
54299, Los Angeles, California 90054-0299, telephone number (800) 445-SUN2. In
New York, shareholders should call (800) 99-NYSUN.

=========================================================
FINANCIAL INFORMATION
=========================================================

Further financial information can be found in the Statement of Additional
Information, which is available upon written request to the Trust.

40
<PAGE> 44

Statement of Additional Information

SUNAMERICA SERIES TRUST

This Statement of Additional Information is not a prospectus, but should be
read in conjunction with the current Prospectus of SunAmerica
Series Trust ("Trust"). Capitalized terms used herein but not defined have the
meanings assigned to them in the Prospectus. The Prospectus
may be obtained by writing to the Trust at the following address:

P.O. Box 54299
Los Angeles, California 90054-0299

May 14, 1997

<PAGE> 45

TABLE OF CONTENTS

<TABLE>
<CAPTION>
TOPIC PAGE
- ----- ----

<S> <C>
The Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-2
Investment Objectives and Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-3
Description of Commercial Paper and Bond Ratings . . . . . . . . . . . . . . . . . . . . . . B-27
Investment Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-32
Trust Officers and Trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-37
Investment Advisory and Management Agreement . . . . . . . . . . . . . . . . . . . . . . . . B-39
Subadvisory Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-42
Dividends, Distributions and Federal Taxes . . . . . . . . . . . . . . . . . . . . . . . . . B-45
Price of Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-45
Execution of Portfolio Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-46
General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-52
Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-54

</TABLE>

THE TRUST

The Trust, organized as a Massachusetts business trust on September
11, 1992, is an open-end management investment company. Shares of the Trust
are issued and redeemed only in connection with investments in and payments
under variable annuity contracts, and may be sold to fund variable life
contracts in the future.

On August 30, 1994, the Board of Trustees of the Trust (the
"Trustees") approved the creation of the Balanced/Phoenix Investment Counsel
Portfolio, International Diversified Equities Portfolio, Worldwide High Income
Portfolio and Venture Value Portfolio. On March 1, 1996, the Trustees approved
the creation of the SunAmerica Balanced Portfolio, Aggressive Growth Portfolio,
Federated Value Portfolio and Utility Portfolio. In addition, on March 1,
1996, the Trustees approved changing the name of the Fixed Income Portfolio to
the Corporate Bond Portfolio, and such name change became effective on June 3,
1996. On April 15, 1997, the Trustees approved the creation of the
International Growth and Income Portfolio, the Real Estate Portfolio and the
Emerging Markets Portfolio. In addition, on April 15, 1997 the Trustees
approved changing the name of the Provident Growth Portfolio to the Putnam
Growth Portfolio, and such name change became effective on April 16, 1997.

Shares of the Trust are held by separate accounts of Variable Annuity
Account Four, Anchor National Life Insurance Company, an Arizona corporation,
and First SunAmerica Life Insurance Company, a New York corporation. Anchor
National Life Insurance Company and

B-2
<PAGE> 46
First SunAmerica Life Insurance Company are wholly owned subsidiaries of
SunAmerica Life Insurance Company, an Arizona corporation wholly owned by
SunAmerica Inc., a Maryland corporation.

INVESTMENT OBJECTIVES AND POLICIES

The discussion below is intended to supplement the information
contained in the Prospectus.

CASH MANAGEMENT PORTFOLIO. The Cash Management Portfolio seeks to
achieve its investment objective by investing in a diversified selection of
money market instruments. The money market instruments that the Portfolio may
invest in are as follows:

Commercial Bank Obligations. Certificates of deposit (interest-bearing
time deposits), bankers' acceptances (time drafts drawn on a
commercial bank where the bank accepts an irrevocable obligation to
pay at maturity) and documented discount notes (corporate promissory
discount notes accompanied by a commercial bank guarantee to pay at
maturity) representing direct or contingent obligations of commercial
banks with total assets in excess of $1 billion, based on the latest
published reports. The Cash Management Portfolio may also invest in
obligations issued by commercial banks with total assets of less than
$1 billion if the principal amount of these obligations owned by the
Cash Management Portfolio is fully insured by the Federal Deposit
Insurance Corporation ("FDIC").

Savings Association Obligations. Certificates of deposit
(interest-bearing time deposits) issued by mutual savings banks or
savings and loan associations with assets in excess of $1 billion and
whose deposits are insured by the FDIC. The Cash Management Portfolio
may also invest in obligations issued by mutual savings banks or
savings and loan associations with total assets of less than $1
billion if the principal amount of these obligations owned by the Cash
Management Portfolio is fully insured by the FDIC.

Commercial Paper. Short-term notes (up to 9 months) issued by
corporations or governmental bodies. The Cash Management Portfolio
may only purchase commercial paper judged by SunAmerica Asset
Management Corp. ("SAAMCo" or the "Adviser") to be of suitable
investment quality. This includes commercial paper that is (a) rated
in the

B-3
<PAGE> 47
two highest categories by Standard & Poor's Ratings Services, a
Division of The McGraw-Hill Companies, Inc. ("Standard & Poor's") and
by Moody's Investors Service, Inc. ("Moody's"), or (b) other
commercial paper deemed on the basis of the issuer's creditworthiness
to be of a quality appropriate for the Cash Management Portfolio. (No
more than 5% of the Cash Management Portfolio's assets may be invested
in commercial paper in the second highest rating category; no more
than the greater of 1% or $1 million may be invested in such
securities of any one issuer.) See "Description of Commercial Paper
and Bond Ratings" for a description of the ratings. The Cash
Management Portfolio will not purchase commercial paper described in
(b) above if such paper would in the aggregate exceed 15% of its total
assets after such purchase. The commercial paper in which the Cash
Management Portfolio may invest includes variable amount master demand
notes. Variable amount master demand notes permit the Cash Management
Portfolio to invest varying amounts at fluctuating rates of interest
pursuant to the agreement in the master note. These are direct
lending obligations between the lender and borrower, they are
generally not traded, and there is no secondary market. Such
instruments are payable with accrued interest in whole or in part on
demand. The amounts of the instruments are subject to daily
fluctuations as the participants increase or decrease the extent of
their participation. Investments in these instruments are limited to
those that have a demand feature enabling the Cash Management
Portfolio unconditionally to receive the amount invested from the
issuer upon seven or fewer days' notice. Generally, the Cash
Management Portfolio attempts to invest in instruments having a
one-day notice provision. In connection with master demand note
arrangements, the Adviser, subject to the direction of the trustees,
monitors on an ongoing basis, the earning power, cash flow and other
liquidity ratios of the borrower, and its ability to pay principal and
interest on demand. The Adviser also considers the extent to which
the variable amount master demand notes are backed by bank letters of
credit. These notes generally are not rated by Moody's or Standard &
Poor's and the Cash Management Portfolio may invest in them only if it
is determined that at the time of investment the notes are of
comparable quality to the other commercial paper in which the
Portfolio may invest. Master demand notes are considered to have a
maturity equal to the repayment notice period unless the Adviser has
reason to believe

B-4
<PAGE> 48
that the borrower could not make timely repayment upon demand.

Corporate Bonds and Notes. The Cash Management Portfolio may purchase
corporate obligations that mature or that may be redeemed in one year
or less. These obligations originally may have been issued with
maturities in excess of one year. The Cash Management Portfolio may
invest only in corporate bonds or notes of issuers having outstanding
short-term securities rated in the top two rating categories by
Standard & Poor's and Moody's. See "Description of Commercial Paper
and Bond Ratings" for description of investment-grade ratings by
Standard & Poor's and Moody's.

LOAN PARTICIPATIONS AND ASSIGNMENTS. The Worldwide High Income
Portfolio may invest in fixed and floating rate loans ("Loans") arranged
through private negotiations between an issuer of sovereign or corporate debt
obligations and one or more financial institutions ("Lenders"). The
Portfolio's investments in Loans are expected in most instances to be in the
form of participations in Loans ("Participations") and assignments of all or a
portion of Loans ("Assignments") from third parties. In the case of
Participations, the Portfolio will have the right to receive payments of
principal, interest and any fees to which it is entitled only from the Lender
selling the Participation and only upon receipt by the Lender of the payments
from the borrower. In the event of the insolvency of the Lender selling a
Participation, the Portfolio may be treated as a general creditor of the Lender
and may not benefit from any set-off between the Lender and the borrower. The
Portfolio will acquire Participations only if the Lender interpositioned
between the Portfolio and the borrower is determined by the Subadviser to be
creditworthy. When the Portfolio purchases Assignments from Lenders it will
acquire direct rights against the borrower on the Loan. Because Assignments
are arranged through private negotiations between potential assignees and
potential assignors, however, the rights and obligations acquired by the
Portfolio as the purchaser of an Assignment may differ from, and be more
limited than, those held by the assigning Lender. Because there is no liquid
market for such securities, the Portfolio anticipates that such securities
could be sold only to a limited number of institutional investors. The lack of
a liquid secondary market may have an adverse impact on the value of such
securities and the Portfolio's ability to dispose of particular Assignments or
Participations when necessary to meet the Portfolio's liquidity needs or in
response to a specific economic event such as a deterioration in the
creditworthiness of the borrower. The lack of a liquid secondary market for
Assignments

B-5
<PAGE> 49
and Participations also may make it more difficult for the Portfolio to assign
a value to these securities for purposes of valuing the Portfolio and
calculating its net asset value.

STRUCTURED INVESTMENTS. The Worldwide High Income Portfolio and the
International Growth and Income Portfolio may invest a portion of its assets
in entities organized and operated solely for the purpose of restructuring the
investment characteristics of sovereign debt obligations. This type of
restructuring involves the deposit with or purchase by an entity, such as a
corporation or trust, of specified instruments (such as commercial bank loans)
and the issuance by that entity of one or more classes of securities
("Structured Securities") backed by, or representing interests in, the
underlying instruments. The cash flow on the underlying instruments may be
apportioned among the newly issued Structured Securities to create securities
with different investment characteristics, such as varying maturities, payment
priorities and interest rate provisions, and the extent of the payments made
with respect to Structured Securities is dependent on the extent of the cash
flow on the underlying instruments. Because Structured Securities of the type
in which the Portfolio anticipates it will invest typically involve no credit
enhancement, their credit risk generally will be equivalent to that of the
underlying instruments. The Portfolio is permitted to invest in a class of
Structured Securities that is either subordinated or unsubordinated to the
right of payment of another class. Subordinated Structured Securities
typically have higher yields and present greater risks than unsubordinated
Structured Securities. Structured Securities are typically sold in private
placement transactions, and there currently is no active trading market for
Structured Securities.

The Portfolio's investments in government and government-related and
restructured debt instruments are subject to special risks, including the
inability or unwillingness to repay principal and interest, requests to
reschedule or restructure outstanding debt and requests to extend additional
loan amounts.

U.S. CORPORATE HIGH-YIELD FIXED-INCOME SECURITIES. A portion of each
of the Worldwide High Income and High-Yield Bond Portfolios' assets will be
invested in U.S. corporate high-yield fixed-income securities, which offer a
yield above that generally available on U.S. corporate debt securities in the
four highest rating categories of the recognized rating services. The
Portfolio may acquire fixed-income securities of U.S. issuers, including debt
obligations (e.g., bonds, debentures, notes, equipment lease certificates,
equipment trust certificates, conditional sales contracts, commercial paper and
obligations issued or guaranteed by the U.S. government or any of its political
subdivisions, agencies

B-6
<PAGE> 50
or instrumentalities) and preferred stock. These fixed-income securities may
have equity features, such as conversion rights or warrants, and the Portfolio
may invest up to 10% of its total assets in equity features, such as conversion
rights or warrants, and the Portfolio may invest up to 10% of its total assets
in equity securities other than preferred stock (e.g., common stock, warrants
and rights and limited partnership interests). The Portfolio may not invest
more than 5% of its total assets at the time of acquisition in either of (1)
equipment lease certificates, equipment trust certificates, equipment trust
certificates and conditional sales contracts or (2) limited partnership
interests.

EMERGING COUNTRY FIXED-INCOME SECURITIES. Certain of the Portfolios
may invest their assets, to varying degrees, in emerging country fixed-income
securities, which are debt securities of government and government-related
issuers located in emerging countries (including participations in loans
between governments and financial institutions), and of entities organized to
restructure outstanding debt of such issuers and debt securities of corporate
issuers located in or organized under the laws of emerging countries. As used
with respect to these Portfolios, an emerging country is any country that the
International Bank for Reconstruction and Development (more commonly known as
the World Bank) has determined to have a low or middle income economy. There
are currently over 130 countries which are considered to be emerging countries,
approximately 40 of which currently have established securities markets. The
countries generally include every nation in the world except the United States,
Canada, Japan, Australia, Singapore, New Zealand and most nations located in
Western Europe. Not withstanding the foregoing with respect to Putnam, in
addition to the exclusions listed above, the following countries should also be
excluded from the countries considered emerging markets: Austria, Belgium,
Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway,
Spain, Sweden, Switzerland and the United Kingdom.

In selecting emerging country debt securities for investment by the
Portfolio, the Subadviser will apply a market risk analysis contemplating
assessment of factors such as liquidity, volatility, tax implications, interest
rate sensitivity, counterparty risks and technical market considerations.
Currently, investing in many emerging country securities is not feasible or may
involve unacceptable political risks. The Portfolio expects that its
investments in emerging country debt securities will be made primarily in some
or all of the following emerging countries:

Argentina Indonesia Poland
Brazil Malaysia Portugal

B-7
<PAGE> 51
Chile Mexico South Africa
Czech Republic Morocco Thailand
Egypt Pakistan Turkey
Greece Peru Uruguay
Hungary Philippines Venezuela

As opportunities to invest in debt securities in other emerging
countries develop, the Portfolio expects to expand and further diversify the
emerging countries in which it invests. While the Portfolio generally is not
restricted in the portion of its assets which may be invested in a single
country or region, it is anticipated that, under normal circumstances, the
Portfolio's assets will be invested in at least three countries.

The Portfolio's investments in government and government-related and
restructured debt securities will consist of (i) debt securities or obligations
issued or guaranteed by governments, governmental agencies or instrumentalities
and political subdivisions located in emerging countries (including
participation in loans between governments and financial institutions), (ii)
debt securities or obligations issued by government owned, controlled or
sponsored entities located in emerging countries, and (iii) interests in
issuers organized and operated for the purpose of restructuring the investment
characteristics of instruments issued by any of the entities described above.
Such type of restructuring involves the deposit with or purchase by an entity
of specific instruments and the issuance by that entity of one or more classes
of securities backed by, or representing an interest in, the underlying
instruments. Certain issuers of such structured securities may be deemed to be
"investment companies" as defined in the Investment Company Act of 1940, as
amended, (the "1940 Act"). As a result, the Portfolio's investment in such
securities may be limited by certain investment restrictions contained in the
1940 Act.

The Portfolio's investments in debt securities of corporate issuers in
emerging countries may include debt securities or obligations issued (i) by
banks located in emerging countries or by branches of emerging country banks
located outside the country or (ii) by companies organized under the laws of an
emerging country. Determinations as to eligibility will be made by the
Subadviser based on publicly available information and inquiries made to the
issuer. The Portfolio may also invest in certain debt obligations customarily
referred to as "Brady Bonds," which are created through the exchange of
existing commercial bank loans to foreign entities for new obligations in
connection with debt restructuring under a plan introduced by former U.S.
Secretary of the Treasury Nicholas F. Brady.

B-8
<PAGE> 52
Emerging country debt securities held by the Portfolio will take the
form of bonds, notes, bills, debentures, convertible securities, warrants, bank
debt obligations, short-term paper, mortgage-backed and other asset-backed
securities, loan participations, loan assignments and interests issued by
entities organized and operated for the purpose of restructuring the investment
characteristics of instruments issued by emerging country issuers. U.S.
dollar-denominated emerging country debt securities held by the Portfolio will
generally be listed but not traded on a securities exchange, and non-U.S.
dollar-denominated securities held by the Portfolio may or may not be listed or
traded on a securities exchange. The Portfolio may invest in mortgage-backed
securities and in other asset-backed securities issued by non-governmental
entities such as banks and other financial institutions. Mortgage-backed
securities include mortgage pass-through securities and collateralized mortgage
obligations. Asset-backed securities are collateralized by such assets as
automobile or credit card receivables and are securitized either in a
pass-through structure or in a pay-through structure similar to a collaterized
mortgage obligation.

Investments in emerging country debt securities entail special
investment risks. Many of the emerging countries listed above may have less
stable political environments than more developed countries. Also, it may be
more difficult to obtain a judgement in a court outside the United States.

GLOBAL FIXED-INCOME SECURITIES. Certain of the Portfolios may invest
their assets, to varying degrees, in global fixed-income securities. These are
debt securities denominated in currencies of countries displaying high real
yields. Such securities include government obligations issued or guaranteed by
U.S. or foreign governments and their political subdivisions, authorities,
agencies or instrumentalities, and by supranational entities (such as the World
Bank, The European Economic Community, The Asian Development Bank and the
European Coal and Steel Community), Eurobonds, and corporate bonds with varying
maturities denominated in various currencies. In this portion of the
Portfolio, the Subadviser seeks to minimize investment risk by investing in a
high quality portfolio of debt securities, the majority of which will be rated
in one of the two highest rating categories by a nationally recognized
statistical rating organization. U.S. government securities in which the
Portfolio may invest include obligations issued or guaranteed by the U.S.
government, such as U.S. Treasury securities, as well as those backed by the
full faith and credit of the United States, such as obligations of the
Government National Mortgage Association and The Export-Import Bank. The
Portfolio may also invest in obligations issued or guaranteed by U.S.
government

B-9
<PAGE> 53

agencies or instrumentalities where the Portfolio must look principally to the
issuing or guaranteeing agency for ultimate repayment. The Portfolio may
invest in obligations issued or guaranteed by foreign governments and their
political subdivisions, authorities, agencies or instrumentalities, and by
supranational entities (such as the World Bank, The European Economic
Community, The Asian Development Bank and the European Coal and Steel
Community). Investment in foreign government securities for this portion of
the Portfolio will be limited to those of developed nations which the
Subadviser believes to pose limited credit risk. These countries currently
include Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany,
Ireland, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway,
Portugal, Spain, Sweden, Switzerland and the United Kingdom. Corporate and
supranational obligations selected for this portion of the portfolio will be
limited to those rated A or better by Moody's, Standard & Poor's or IBCA Ltd.

In selecting securities for this portion of the Portfolio, the
Subadviser evaluates the currency, market and individual features of the
securities being considered for investment. The Subadviser believes that
countries displaying the highest real yields will over time generate a high
total return, and accordingly, the Subadviser's focus for this portion of the
Portfolio will be to analyze the relative rates of real yield of twenty global
fixed-income markets. In selecting securities, the Subadviser will first
identify the global markets in which the Portfolio's assets will be invested by
ranking such countries in order of highest real yield. In this portion of its
portfolio, the Portfolio will invest its assets primarily in fixed-income
securities denominated in the currencies of countries within the top quartile
of the Subadviser's ranking.

The Subadviser's assessment of the global fixed-income markets is
based on an analysis of real interest rates. The Subadviser calculates real
yield for each global market by adjusting current nominal yields of securities
in each such market for inflation prevailing in each country using an analysis
of past and projected (one-year) inflation rates for that country. The
Subadviser expects to review and update on a regular basis its real yield
ranking of countries and market sectors and to alter the allocation of this
portion of the Portfolio's investments among markets as necessary when changes
to real yields and inflation estimates significantly alter the relative
rankings of the countries and market sectors.

SHORT SALES. Each Portfolio (other than the Cash Management
Portfolio) may make short sales, including "short sales against the box." A
short sale is effected by selling a security which the

B-10
<PAGE> 54
Portfolio does not own. A short sale is against the box to the extent that the
Portfolio contemporaneously owns, or has the right to obtain without payment,
securities identical to those sold short. A Portfolio may not enter into a
short sale against the box, if, as a result, more than 25% of its total assets
would be subject to such short sales.

When a Portfolio makes a short sale, the proceeds it receives from the
sale will be held on behalf of a broker until the Portfolio replaces the
borrowed securities. To deliver the securities to the buyer, the Portfolio
will need to arrange through a broker to borrow the securities and, in so
doing, the Portfolio will become obligated to replace the securities borrowed
at their market price at the time of replacement, whatever that price may be.
The Portfolio may have to pay a premium to borrow the securities and must pay
any dividends or interest payable on the securities until they are replaced.

The Portfolio's obligation to replace the securities borrowed in
connection with a short sale will be secured by collateral deposited with the
Trust's Custodian in the name of the broker that consists of cash or liquid
securities. In addition, the Portfolio will place in a segregated account with
its Custodian an amount of cash or liquid securities equal to the difference,
if any, between (1) the market value of the securities sold at the time they
were sold short and (2) any cash or liquid securities deposited as collateral
with the broker in connection with the short sale (not including the proceeds
of the short sale). In the event that the value of the collateral deposited
with the broker, plus the value of the assets in the segregated account should
fall below the value of the securities sold short, additional amounts to cover
the difference will be placed in the segregated accounts. Short sales by the
Portfolio involve certain risks and special considerations. Possible losses
from short sales differ from losses that could be incurred from a purchase of a
security, because losses from short sales may be unlimited, whereas losses from
purchases can equal only the total amount invested.

ILLIQUID SECURITIES. Each of the Portfolios may invest no more than
15% (10% in the case of the Cash Management Portfolio) of its net assets,
determined as of the date of purchase, in illiquid securities including
repurchase agreements which have a maturity of longer than seven days or in
other securities that are illiquid by virtue of the absence of a readily
available market or legal or contractual restrictions on resale. Historically,
illiquid securities have included securities subject to contractual or legal
restrictions on resale because they have not been registered under the
Securities Act of 1933, as amended (the "Securities Act"), securities which are
otherwise not readily marketable and

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repurchase agreements having a maturity of longer than seven days. Repurchase
agreements subject to demand are deemed to have a maturity equal to the notice
period. Securities which have not been registered under the Securities Act are
referred to as private placements or restricted securities and are purchased
directly from the issuer or in the secondary market. Mutual funds do not
typically hold a significant amount of these restricted or other illiquid
securities because of the potential for delays on resale and uncertainty in
valuation. Limitations on resale may have an adverse effect on the
marketability of portfolio securities and a mutual fund might be unable to
dispose of restricted or other illiquid securities promptly or at reasonable
prices and might thereby experience difficulty satisfying redemptions within
seven days. A mutual fund might also have to register such restricted
securities in order to dispose of them, resulting in additional expense and
delay. There generally will be a lapse of time between a mutual fund's
decision to sell an unregistered security and the registration of such security
promoting sale. Adverse market conditions could impede a public offering of
such securities. When purchasing unregistered securities, the Portfolios will
seek to obtain the right of registration at the expense of the issuer.

In recent years, a large institutional market has developed for
certain securities that are not registered under the Securities Act, including
repurchase agreements, commercial paper, foreign securities, municipal
securities and corporate bonds and notes. Institutional investors depend on an
efficient institutional market in which the unregistered security can be
readily resold or on an issuer's ability to honor a demand for repayment. The
fact that there are contractual or legal restrictions on resale to the general
public or to certain institutions may not be indicative of the liquidity of
such investments.

Restricted securities eligible for resale pursuant to Rule 144A under
the Securities Act for which there is a readily available market will not be
deemed to be illiquid. The Adviser or subadviser, as the case may be, will
monitor the liquidity of such restricted securities subject to the supervision
of the Board of Trustees of the Trust. In reaching liquidity decisions, the
Adviser, or subadviser, as the case may be, will consider, inter alia, pursuant
to guidelines and procedures established by the Trustees, the following
factors: (1) the frequency of trades and quotes for the security; (2) the
number of dealers wishing to purchase or sell the security and the number of
other potential purchasers; (3) dealer undertakings to make a market in the
security; and (4) the nature of the security and the nature of the marketplace
trades (e.g., the time needed to dispose of the

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security, the method of soliciting offers and the mechanics of the transfer).

The Cash Management Portfolio may invest in commercial paper issues
which include securities issued by major corporations without registration
under the Securities Act in reliance on the exemption from such registration
afforded by Section 3(a)(3) thereof, and commercial paper issued in reliance on
the so-called private placement exemption from registration which is afforded
by Section 4(2) of the Securities Act ("Section 4(2) paper"). Section 4(2)
paper is restricted as to disposition under the federal securities laws in that
any resale must similarly be made in an exempt transaction. Section 4(2) paper
is normally resold to other institutional investors through or with the
assistance of investment dealers who make a market in Section 4(2) paper, thus
providing liquidity. Section 4(2) paper that is issued by a company that files
reports under the Securities Exchange Act of 1934 is generally eligible to be
sold in reliance on the safe harbor of Rule 144A described above. The Cash
Management Portfolio's 10% limitation on investments in illiquid securities
includes Section 4(2) paper other than Section 4(2) paper that the Adviser has
determined to be liquid pursuant to guidelines established by the Trustees.
The Portfolio's Board of Trustees delegated to the Adviser the function of
making day-to-day determinations of liquidity with respect to Section 4(2)
paper, pursuant to guidelines approved by the Trustees that require the Adviser
to take into account the same factors described above for other restricted
securities and require the Adviser to perform the same monitoring and reporting
functions.

REVERSE REPURCHASE AGREEMENTS. The Cash Management, Corporate Bond,
High-Yield Bond, Worldwide High Income, SunAmerica Balanced, Utility, Federated
Value and Aggressive Growth Portfolios may enter into reverse repurchase
agreements with brokers, dealers, domestic and foreign banks or other financial
institutions that have been determined by the Adviser or Subadviser to be
creditworthy. In a reverse repurchase agreement, the Portfolio sells a
security and agrees to repurchase it at a mutually agreed upon date and price,
reflecting the interest rate effective for the term of the agreement. It may
also be viewed as the borrowing of money by the Portfolio. The Portfolio's
investment of the proceeds of a reverse repurchase agreement is the speculative
factor known as leverage. The Portfolios will enter into a reverse repurchase
agreement only if the interest income from investment of the proceeds is
expected to be greater than the interest expense of the transaction and the
proceeds are invested for a period no longer than the term of the agreement.
The Portfolio will maintain with the Custodian a separate account with a
segregated portfolio of cash or liquid securities in an amount at least equal
to its purchase obligations

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under these agreements (including accrued interest). In the event that the
buyer of securities under a reverse repurchase agreement files for bankruptcy
or becomes insolvent, the buyer or its trustee or receiver may receive an
extension of time to determine whether to enforce the Portfolio's repurchase
obligation, and the Portfolio's use of proceeds of the agreement may
effectively be restricted pending such decision. Reverse repurchase agreements
are considered to be borrowings and are subject to the percentage limitations
on borrowings. See "Investment Restrictions."

FLOATING RATE OBLIGATIONS. These securities have a coupon rate that
changes at least annually and generally more frequently. The coupon rate is
set in relation to money market rates. The obligations, issued primarily by
banks, other corporations, governments and semi-governmental bodies, may have a
maturity in excess of one year. In some cases, the coupon rate may vary with
changes in the yield on Treasury bills or notes or with changes in LIBOR
(London Interbank Offering Rate). The Adviser considers floating rate
obligations to be liquid investments because a number of United States and
foreign securities dealers make active markets in these securities.

COVERED OPTIONS. Each Portfolio may write (sell) covered call and
put options on any securities in which it may invest. A Portfolio may purchase
and write such options on securities that are listed on national domestic
securities exchanges (and, for certain Portfolios, foreign securities
exchanges) or traded in the over-the-counter market. A call option written by
a Portfolio obligates a Portfolio to sell specified securities to the holder of
the option at a specified price if the option is exercised at any time before
the expiration date. All call options written by a Portfolio are covered,
which means that a Portfolio will own the securities subject to the option so
long as the option is outstanding. The purpose of writing covered call options
is to realize greater income than would be realized on portfolio securities
transactions alone. However, in writing covered call options for additional
income, a Portfolio may forego the opportunity to profit from an increase in
the market price of the underlying security.

A put option written by a Portfolio would obligate a Portfolio to
purchase specified securities from the option holder at a specified price if
the option is exercised at any time before the expiration date. All put
options written by a Portfolio would be covered, which means that the Portfolio
would have deposited with its custodian cash, U.S. government securities or
other high-grade debt securities (i.e., securities rated in one of the top
three categories by Moody's or Standard & Poor's, or, if unrated, deemed

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by the Adviser or subadviser to be of comparable credit quality) with a value
at least equal to the exercise price of the put option. The purpose of writing
such options is to generate additional income for a Portfolio. However, in
return for the option premium, a Portfolio accepts the risk that it may be
required to purchase the underlying securities at a price in excess of the
securities' market value at the time of purchase.

PORTFOLIO STRATEGIES RELATED TO FOREIGN SECURITIES. Each Portfolio may
engage in various portfolio strategies to reduce certain risks of their
respective investments and/or to attempt to enhance return. Each Portfolio may
engage in strategies including the purchase and sale of forward foreign
currency exchange contracts, currency and financial index futures contracts
(including, in the case of the Global Equities Portfolio, stock index futures)
and options thereon, put and call options on currencies and financial indices,
and combinations thereof. The Adviser or Subadviser will use such techniques
as market conditions warrant. Each Portfolio's ability to use these strategies
may be limited by market conditions, regulatory limits and tax considerations
and there can be no assurance that any of these strategies will succeed. New
financial products and risk management techniques continue to be developed and
these Portfolios may use these new investments and techniques to the extent
consistent with their investment objective and policies.

In addition to direct investment, the Portfolios which may invest in
foreign securities may also invest in American Depositary Receipts ("ADRs") and
in other Depositary Receipts, including Global Depositary Receipts ("GDRs"),
European Depositary Receipts ("EDRs") and others (which, together with ADRs,
GDRs and EDRs, are hereinafter collectively referred to as "Depositary
Receipts"), to the extent that such Depositary Receipts become available. ADRs
are securities, typically issued by a U.S. financial institution (a
"depositary"), that evidence ownership interests in a security or a pool of
securities issued by a foreign issuer (the "underlying issuer") and deposited
with the depositary. ADRs include American Depositary Shares and New York
Shares and may be "sponsored" or "unsponsored." Sponsored ADRs are established
jointly by a depositary and the underlying issuer, whereas unsponsored ADRs may
be established by a depositary without participation by the underlying issuer.
GDRs, EDRs and other types of Depositary Receipts are typically issued by
foreign depositaries, although they may also be issued by U.S. depositaries,
and evidence ownership interests in a security or pool of securities issued by
either a foreign or a U.S. corporation. Holders of unsponsored Depositary
Receipts generally bear all the costs associated with establishing the
unsponsored Depositary Receipt. The depositary of unsponsored Depositary
Receipts is under no obligation to

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distribute shareholder communications received from the underlying issuer or to
pass through to the holders of the unsponsored Depositary Receipt voting rights
with respect to the deposited securities or pool of securities. Depositary
Receipts are not necessarily denominated in the same currency as the underlying
securities to which they may be connected. Generally, Depositary Receipts in
registered form are designed for use in the U.S. securities market and
Depositary Receipts in bearer form are designed for use in securities markets
outside the United States. A Portfolio may invest in sponsored and unsponsored
Depositary Receipts. For purposes of a Portfolio's investment policies, the
Portfolio's investments in Depositary Receipts will be deemed to be investments
in the underlying securities. The Portfolios also may invest in securities
denominated in European Currency Units ("ECUs"). Generally ADRs, in registered
form, are dollar denominated securities designed for use in the U.S. securities
markets, which represent and may be converted into the underlying foreign
security. EDRs, in bearer form, are designed for use in the European
securities markets. An "ECU" is a "basket" consisting of specified amounts of
currencies of certain of the twelve member states of the European Community.
The specific amount of currencies comprising the ECU may be adjusted by the
Council of Ministers of the European Community from time to time to reflect
changes in relative values of the underlying currencies. In addition, the
Portfolios may invest in securities denominated in other currency "baskets."
See "Description of Securities and Investment Techniques - Risks and
Considerations Applicable to Investment in Securities of Foreign Issuers" in
the Prospectus.

The Portfolios may also invest in emerging country securities. As
used with respect to this Portfolio, the term "emerging country" applies to any
country which, in the opinion of the Subadviser, is generally considered to be
an emerging or developing country by the international financial community,
including the International Bank for Reconstruction and Development (more
commonly known as the World Bank) and the International Finance Corporation.
There are currently over 130 countries which, in the opinion of the Subadviser,
are generally considered to be emerging or developing countries by the
international financial community, approximately 40 of which currently have
stock markets. These countries generally include every nation in the world
except the United States, Canada, Japan, Australia, New Zealand, Singapore and
most nations located in Western Europe. Not withstanding the foregoing with
respect to the Emerging Markets Portfolio, the Subadviser believes that in
addition to the exclusions listed above, the following countries should also be
excluded from the countries considered emerging markets: Austria, Belgium,
Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway,
Spain, Sweden, Switzerland and the United Kingdom. Currently, investing

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in many emerging countries is not feasible or may invoke unacceptable political
risks.

The International Diversified Equities Portfolio will focus its
investments on those emerging market countries in which it believes the
economies are developing strongly and in which the markets are becoming more
sophisticated. With respect to the portions of such Portfolio that is invested
in emerging country equity securities, the Portfolio initially intends to
invest primarily in some or all of the following countries:

Argentina Indonesia Portugal Thailand
Brazil Mexico South Africa Turkey
India Philippines South Korea

As markets in other countries develop, the International Diversified
Equities Portfolio expects to expand and further diversify the emerging
countries in which it invests. The Portfolio does not intend to invest in any
security in a country where the currency is not freely convertible to U.S.
dollars, unless the Portfolio has obtained the necessary governmental licensing
to convert such currency or other appropriately licensed or sanctioned
contractual guarantee to protect such investment against loss of that
currency's external value, or the Portfolio has a reasonable expectation at the
time the investment is made that such governmental licensing or other
appropriately licensed or sanctioned guarantee would be obtained or that the
currency in which the security is quoted would be freely convertible at the
time of any proposed sale of the security by the Portfolio.

An emerging country security is one issued by a company that, in the
opinion of the Subadviser, has one or more of the following characteristics:(i)
it is organized under the laws of, and has a principal office in, an emerging
country, or (ii) alone or on a consolidated basis it derives 50% or more of its
annual revenue from business in emerging countries. An emerging market
security may also include a company which has its principal securities trading
market in an emerging country. The Subadviser will base determinations as to
eligibility on publicly available information and inquiries made to the
companies.

FOREIGN CURRENCY AND FINANCIAL INDEX TRANSACTIONS - FORWARD EXCHANGE
AND FUTURES CONTRACTS, OPTIONS AND OPTIONS ON FUTURES CONTRACTS. Each
Portfolio may enter into contracts for the purchase or sale for future delivery
of foreign currencies ("forward currency exchange contracts"), financial and
foreign currency futures contracts or contracts based on financial indices
("futures contracts") and may purchase and write put and call

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options to buy or sell currencies and to buy or sell futures contracts
("options on futures contracts").

A forward foreign currency contract is an obligation to purchase or
sell a currency against another currency at a future date and price as agreed
upon by the parties. A "sale" of a foreign currency futures contract means
entering into a contract to deliver the foreign currencies called for by the
contract at a specified price on a specified date. A "purchase" of a foreign
currency futures contract means entering into a contract to acquire the foreign
currencies called for by the contract at a specified price on a specified date.

An exchange-traded futures contract relating to foreign currency, or a
financial index, is similar to a forward foreign currency exchange contract but
has a standardized size and exchange date. A Portfolio may either accept or
make delivery of the currency at the maturity of such a contract or, prior to
maturity, enter into a closing transaction involving the purchase or sale of an
offsetting contract. The purchaser of a futures contract on an index agrees to
take or make delivery of an amount of cash equal to the difference between a
specified dollar multiple of the value of the index on the expiration date of
the contract and the price at which the contract was originally struck. No
physical delivery of the securities underlying the index is made.

Over-the-counter currency instruments are subject to the risk that the
counterparty to such instruments will default on its obligations. Since
over-the-counter currency instruments are not guaranteed by an exchange or
clearinghouse, a default on the instrument would deprive the Portfolio of
unrealized profits, transaction costs or the benefits of a currency hedge or
force the Portfolio to cover its purchase or sale commitments, if any, at the
current market price. A Portfolio will not enter into such transactions unless
the credit quality of the unsecured senior debt or the claims-paying ability of
the counterparty is considered to be investment grade by the Adviser or
Subadviser.

Each Portfolio may enter into futures contracts in anticipation of, or
to protect against, fluctuations in currency exchange rates. A Portfolio
might, for example, enter into a futures contract when it wanted to hold
securities denominated in a particular currency but anticipated, and wished to
be protected against, a decline in that currency against the U.S. dollar.
Similarly, it might enter into futures contracts to "lock in" the U.S. dollar
price of non-U.S. dollar denominated securities that it anticipated purchasing.
Although futures contracts typically will involve the purchase and sale of a
foreign currency against the

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U.S. dollar, a Portfolio also may enter into currency contracts not involving
the U.S. dollar.

In connection with these futures transactions, the Trust has filed a
notice of eligibility with the Commodity Futures Trading Commission ("CFTC")
that exempts the Trust from CFTC registration as a "commodity pool operator" as
defined under the Commodity Exchange Act. Pursuant to this notice, each
Portfolio will observe certain CFTC guidelines with respect to its futures
transactions that, among other things, require the Portfolio to use futures for
bona fide "hedging" purposes only (as defined by CFTC rules), and, in the case
of futures transactions for non-bona fide hedging purposes, to limit initial
margin deposits to no more than 5% of its net assets after taking into account
unrealized profits and unrealized losses on any such contracts entered into.
In addition, subject to the limitation on margin deposits described above, a
Portfolio may engage in futures transactions for non-bona fide hedging
purposes, provided that the total value of such long futures positions will not
exceed the sum of (a) cash or cash equivalents set aside in an identifiable
manner for this purpose, (b) cash proceeds on existing investments due within
30 days, and (c) accrued profits on such futures or options positions.

Parties to futures contracts and holders and writers of options on
futures can enter into offsetting closing transactions, similar to closing
transactions on options, by selling or purchasing, respectively, an instrument
identical to the instrument held or written. Positions in futures and options
on futures may be closed only on an exchange or board of trade where there
appears to be a liquid secondary market. However, there can be no assurance
that such a market will exist for a particular contract at a particular time.
Secondary markets for options on futures are currently in the development
stage, and no Portfolio will trade options on futures on any exchange or board
of trade unless, in the judgment of the Adviser or applicable Subadviser, the
markets for such options have developed sufficiently that the liquidity risks
for such options are not greater than the corresponding risks for futures.

Under certain circumstances, futures exchanges may establish daily
limits on the amount that the price of a future or related option can vary from
the previous day's settlement price; once that limit is reached, no trades may
be made that day at a price beyond the limit. Daily price limits do not limit
potential losses because prices could move to the daily limit for several
consecutive days with little or no trading, thereby preventing liquidation of
unfavorable positions.

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If a Portfolio were unable to liquidate a futures or related options
position due to the absence of a liquid secondary market or the imposition of
price limits, it could incur substantial losses. The Portfolio would continue
to be subject to market risk with respect to its position. In addition, except
in the case of purchased options, the Portfolio would continue to be required
to make daily variation margin payments and might be required to maintain the
position being hedged by the future or option or to maintain cash or securities
in a segregated account.

Certain characteristics of the futures market might increase the risk
that movements in the prices of futures contracts or related options might not
correlate perfectly with movements in the prices of the investments being
hedged. For example, all participants in the futures and related options
markets are subject to daily variation margin calls and might be compelled to
liquidate futures or related option positions whose prices are moving
unfavorably to avoid being subject to further calls. These liquidations could
increase price volatility of the instruments and distort the normal price
relationship between the futures or options and the investments being hedged.
Also, because initial margin deposit requirements in the futures markets are
less onerous than margin requirements in the securities markets, there might be
increased participation by speculators in the futures markets. This
participation also might cause temporary price distortions. In addition,
activities of large traders in both the futures and securities markets
involving arbitrage, "program trading" and other investment strategies might
result in temporary price distortions.

In connection with the purchase of futures contracts, a Portfolio will
deposit and maintain in a segregated account with the Trust's custodian an
amount of cash or liquid securities equal to its obligations under the futures
contracts less any amounts maintained in a margin account with the Trust's
futures broker.

OPTIONS - Each Portfolio may attempt to accomplish objectives similar
to those involved in their use of futures contracts by purchasing or selling
put or call options on currencies, currency futures contracts, and financial
index futures (including, in the case of the Global Equities Portfolio, stock
index futures). A foreign currency put option gives the Portfolio as purchaser
the right (but not the obligation) to sell a specified amount of currency at
the exercise price until the expiration of the option. A call option gives the
Portfolio as purchaser the right (but not the obligation) to purchase a
specified amount of currency at the exercise price until its expiration. A
Portfolio might purchase a currency put option, for example, to protect itself
during the contract period against a decline in the U.S. dollar value of a
currency in which it holds or anticipates holding securities. If

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the currency's value should decline against the U.S. dollar, the loss in
currency value should be offset, in whole or in part, by an increase in the
value of the put. If the value of the currency instead should rise against the
U.S. dollar, any gain to the Portfolio would be reduced by the premium it had
paid for the put option. A currency call option might be purchased, for
example, in anticipation of, or to protect against, a rise in the value against
the U.S. dollar of a currency in which a Portfolio anticipates purchasing
securities.

Currency options may be either listed on an exchange or traded
over-the-counter ("OTC options"). Listed options are third-party contracts
(i.e., performance of the obligations of the purchaser and seller is guaranteed
by the exchange or clearing corporation), and have standardized strike prices
and expiration dates. OTC options are two-party contracts with negotiated
strike prices and expiration dates. OTC options differ from exchange-traded
options in that OTC options are transacted with dealers directly and not
through a clearing corporation (which guarantees performance). Consequently,
there is a risk of non-performance by the dealer. Since no exchange is
involved, OTC options are valued on the basis of a quote provided by the
dealer. A Portfolio will not purchase an OTC option unless it is believed that
daily valuations for such options are readily obtainable. In the case of OTC
options, there can be no assurance that a liquid secondary market will exist
for any particular option at any specific time.

An option on a securities index is similar to an option on a security
except that, rather than the right to take or make delivery of a security at a
specified price, an option on an index gives the holder the right to receive,
upon exercise of the option, an amount of cash if the closing level of the
chosen index is greater than (in the case of a call) or less than (in the case
of a put) the exercise price of the option.

Options on futures contracts to be written or purchased by a Portfolio
will be traded on U.S. or foreign exchanges or over-the-counter. These
investment techniques will be used only to hedge against anticipated future
changes in market conditions or exchange rates which otherwise might either
adversely affect the value of a Portfolio's securities or adversely affect the
prices of securities which a Portfolio intends to purchase at a later date.

CERTAIN RISK FACTORS RELATING TO HIGH-YIELD BONDS. The Corporate
Bond, High-Yield Bond, Worldwide High Income, Balanced/Phoenix Investment
Counsel, Asset Allocation, Real Estate and Emerging Markets Portfolios may
invest in high-yield bonds. These bonds present certain risks which are
discussed below:

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Sensitivity to Interest Rate and Economic Changes - High-yield bonds
are very sensitive to adverse economic changes and corporate
developments. During an economic downturn or substantial period of
rising interest rates, highly leveraged issuers may experience
financial stress that would adversely affect their ability to service
their principal and interest payment obligations, to meet projected
business goals, and to obtain additional financing. If the issuer of
a bond defaulted on its obligations to pay interest or principal or
entered into bankruptcy proceedings, a Portfolio may incur losses or
expenses in seeking recovery of amounts owed to it. In addition,
periods of economic uncertainty and changes can be expected to result
in increased volatility of market prices of high-yield bonds and the
Portfolio's net asset value.

Payment Expectations - High-yield bonds may contain redemption or call
provisions. If an issuer exercised these provisions in a declining
interest rate market, a Portfolio would have to replace the security
with a lower yielding security, resulting in a decreased return for
investors. Conversely, a high-yield bond's value will decrease in a
rising interest rate market, as will the value of the Portfolio's
assets. If the Portfolio experiences unexpected net redemptions, this
may force it to sell high-yield bonds without regard to their
investment merits, thereby decreasing the asset base upon which
expenses can be spread and possibly reducing the Portfolio's rate of
return.

Liquidity and Valuation - There may be little trading in the secondary
market for particular bonds, which may affect adversely a Portfolio's
ability to value accurately or dispose of such bonds. Adverse
publicity and investor perceptions, whether or not based on
fundamental analysis, may decrease the values and liquidity of
high-yield bonds, especially in a thin market.

CERTAIN RISK FACTORS AFFECTING UTILITY COMPANIES. The Utility and
Real Estate Portfolios may invest in equity and debt securities of utility
companies. There are certain risks and considerations affecting utility
companies, and the holders of utility company securities, which an investor
should take into account when investing in those securities. Factors which may
adversely affect utility companies include: difficulty in financing large

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construction programs during inflationary periods; technological innovations
which may cause existing plants, equipment, or products to become less
competitive or obsolete; the impact of natural or man-made disaster (especially
on regional utilities); increased costs or reductions in production due to the
unavailability of appropriate types of fuels; seasonally or occasionally
reduced availability or higher cost of natural gas; and reduced demand due to
energy conservation among consumers. These revenues of domestic and foreign
utility companies generally reflect the economic growth and developments in the
geographic areas in which they do business. Furthermore, utility securities
tend to be interest rate sensitive.

In addition, most utility companies in the United States and in
foreign countries are subject to government regulation. Generally, the purpose
of such regulation is to ensure desirable levels of service and adequate
capacity to meet public demand. To this end, prices are often regulated to
enable consumers to obtain service at what is perceived to be a fair price,
while attempting to provide utility companies with a rate of return sufficient
to attract capital investment necessary for continued operation and necessary
growth. Recently, utility regulators have permitted utilities to diversify
outside of their original geographic regions and their traditional lines of
business. While the Subadvisers believe that these opportunities will permit
certain utility companies to earn more than their traditional regulated rates
of return, other companies may be forced to defend their core business and may
be less profitable. Of course, there can be no assurance that all of the
regulatory policies described in this paragraph will continue in the future.

In addition to the effects of regulation described in the previous
paragraph, utility companies may also be adversely affected by the following
regulatory considerations: (i) the development and implementation of a national
energy policy; (ii) the differences between regulatory policies of different
jurisdictions (or different regulators which have concurrent jurisdiction);
(iii) shifts in regulatory policies; (iv) adequacy of rate increases; and (v)
future regulatory legislation.

Foreign utility companies may encounter different risks and
opportunities than those located in the United States. Foreign utility
companies may be more heavily regulated than their United States counterparts.
Many foreign utility companies currently use fuels which cause more pollution
than fuels used by United States utilities. In the future, it may be necessary
for such foreign utility companies to invest heavily in pollution control
equipment or otherwise meet pollution restrictions. Rapid growth in certain
foreign economies may encourage the growth of utility industries in those
countries.

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In addition to the foregoing considerations which affect most utility
companies, there are specific considerations which affect specific utility
industries:

Electric. The electric utility industry is composed of companies that
are engaged in the generation, transmission, and sale of electric energy.
Electric utility companies may be affected either favorably or unfavorably,
depending upon the circumstances, by the following: fuel costs; financing
costs; size of the region in which sales are made; operating costs;
environmental and safety regulations; changes in the regulatory environment;
and the length of time needed to complete major construction projects.

In the United States, the construction and operation of nuclear power
facilities is subject to a high degree of regulatory oversight by the Nuclear
Regulatory Commission and state agencies with concurrent jurisdiction. In
addition, the design, construction, licensing, and operation of nuclear power
facilities are often subject to lengthy delays and unanticipated costs due to
changes in regulatory policy, regional political actions, and lawsuits.
Furthermore, during rate authorizations, utility regulators may disallow the
inclusion in electric rates of the higher operating costs and expenditures
resulting from these delays and unanticipated costs, including the costs of a
nuclear facility which a utility company may never be able to use.

Telecommunications. The telephone industry is large and highly
concentrated. The greatest portion of this segment is comprised of companies
which distribute telephone services and provide access to the telephone
networks. While many telephone companies have diversified into other
businesses in recent years, the profitability of telephone utility companies
could be adversely affected by increasing competition, technological
innovations, and other structural changes in the industry.

Cable television companies are typically local monopolies, subject to
scrutiny by both utility regulators and municipal governments. Emerging
technologies and legislation encouraging local competition are combining to
threaten these monopolies and may slow future growth rates of these companies.
The radio telecommunications segment of this industry, including cellular
telephone, is in its early developmental phase and is characterized by
emerging, rapidly growing companies.

Gas. Gas transmission and distribution companies are undergoing
significant changes. In the United States, the Federal Energy Regulatory
Commission is reducing its regulation of

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interstate transmission of gas. While gas utility companies have in the recent
past been adversely affected by disruptions in the oil industry, increased
concentration, and increased competition, the Subadviser believes that
environmental considerations should benefit the gas industry in the future.

Water. Water utility companies purify, distribute, and sell water.
This industry is highly fragmented because most of the water supplies are owned
by local authorities. Water utility companies are generally mature and are
experiencing little or no per capita volume growth. The Subadviser believes
that favorable investment opportunities may result if anticipated consolidation
and foreign participation in this industry occurs.

CONVENTIONAL MORTGAGE PASS-THROUGH SECURITIES. Conventional mortgage
pass-through securities ("Conventional Mortgage Pass-Throughs") represent
participation interests in pools of mortgage loans that are issued by trusts
formed by originators of the institutional investors in mortgage loans (or
represent custodial arrangements administered by such institutions). These
originators and institutions include commercial banks, savings and loan
associations, credit unions, savings banks, insurance companies, investment
banks or special purpose subsidiaries of the foregoing. For federal income tax
purposes, such trusts are generally treated as grantor trusts or real estate
mortgage conduits ("REMIC") and, in either case, are generally not subject to
any significant amount of federal income tax at the entity level.

The mortgage pools underlying Conventional Mortgage Pass-Throughs
consist of conventional mortgage loans evidenced by promissory notes secured by
first mortgages or first deeds of trust or other similar security instruments
creating a first lien on residential or mixed residential and commercial
properties. Conventional Mortgage Pass-Throughs (whether fixed or adjustable
rate) provide for monthly payments that are a "pass-through" of the monthly
interest and principal payments (including any prepayments) made by the
individual borrowers on the pooled mortgage loans, net of any fees or other
amount paid to any guarantor, administrator and/or servicer of the underlying
mortgage loans. A trust fund with respect to which a REMIC election has been
made may include regular interests in other REMICs which in turn will
ultimately evidence interests in mortgage loans.

Conventional mortgage pools generally offer a higher rate of interest
than government and government-related pools because of the absence of any
direct or indirect government or agency payment guarantees. However, timely
payment of interest and principal of mortgage loans in these pools may be
supported by various forms of

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<PAGE> 69
insurance or guarantees, including individual loans, title, pool and hazard
insurance and letters of credit. The insurance and guarantees may be issued by
private insurers and mortgage poolers. Although the market for such securities
is becoming increasingly liquid, mortgage-related securities issued by private
organizations may not be readily marketable.

CERTAIN COLLATERALIZED MORTGAGE OBLIGATIONS. Principal and interest
on the underlying mortgage assets may be allocated among the several classes of
Collateralized Mortgage Obligations ("CMOs") in various ways. In certain
structures (known as "sequential pay" CMOs), payments of principal, including
any principal prepayments, on the mortgage assets generally are applied to the
classes of CMOs in the order of their respective final distribution dates.
Thus, no payment of principal will be made on any class of sequential pay CMOs
until all other classes having an earlier final distribution date have been
paid in full.

Additional structures of CMOs include, among others, "parallel pay"
CMOs. Parallel pay CMOs are those which are structured to apply principal
payments and prepayments of the mortgage assets to two or more classes
concurrently on a proportionate or disproportionate basis. These simultaneous
payments are taken into account in calculating the final distribution date of
each class.

A wide variety of CMOs may be issued in the parallel pay or sequential
pay structures. These securities include accrual certificates (also known as
"Z-Bonds"), which only accrue interest at a specified rate until all other
certificates having an earlier final distribution date have been retired and
are converted thereafter to an interest-paying security, and planned
amortization class ("PAC") certificates, which are parallel pay CMOs which
generally require that specified amounts of principal be applied on each
payment date to one or more classes of CMOs (the "PAC Certificates"), even
though all other principal payments and prepayments of the mortgage assets are
then required to be applied to one or more other classes of the certificates.
The scheduled principal payments for the PAC Certificates generally have the
highest priority on each payment date after interest due has been paid to all
classes entitled to receive interest currently. Shortfalls, if any, are added
to the amount payable on the next payment date. The PAC Certificate payment
schedule is taken into account in calculating the final distribution date of
each class of PAC. In order to create PAC tranches, one or more tranches
generally must be created that absorb most of the volatility in the underlying
mortgage assets. These tranches tend to have market prices and yields that are
much more volatile than the PAC classes.

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WARRANTS. The Corporate Bond, High-Yield, SunAmerica Balanced,
Utility, Federated Value, Aggressive Growth, Real Estate International Growth
and Income and Emerging Markets Portfolios may invest in warrants which give
the holder of the warrant a right to purchase a given number of shares of a
particular issue at a specified price until expiration. Such investments can
generally provide a greater potential for profit or loss than investments of
equivalent amounts in the underlying common stock. The prices of warrants do
not necessarily move with the prices of the underlying securities. If the
holder does not sell the warrant, it risks the loss of its entire investment
if the market price of the underlying stock does not, before the expiration
date, exceed the exercise price of the warrant plus the cost thereof.
Investment in warrants is a speculative activity. Warrants pay no dividends
and confer no rights (other than the right to purchase the underlying stock)
with respect to the assets of the issuer. Although certain of the Portfolios
may not invest directly in warrants, such Portfolios may invest in securities
that are acquired as part of a unit consisting of a combination of fixed-income
and equity securities or securities to which warrants are attached.

DESCRIPTION OF COMMERCIAL PAPER AND BOND RATINGS

COMMERCIAL PAPER RATINGS. Moody's employs the designations "P-1,"
"P-2" and "P-3" to indicate commercial paper having the highest capacity for
timely repayment. Issuers rated P-1 have a superior capacity for repayment of
short-term promissory obligations. P-1 repayment capacity will normally be
evidenced by the following characteristics: leading market positions in
well-established industries; high rates of return on funds employed;
conservative capitalization structures with moderate reliance on debt and ample
asset protection; broad margins in earnings coverage of fixed financial charges
and high internal cash generation; and well-established access to a range of
financial markets and assured sources of alternate liquidity. Issues rated P-2
have a strong capacity for repayment of short-term promissory obligations.
This will normally be evidenced by many of the characteristics cited above, but
to a lesser degree. Earnings trends and coverage ratios, while sound, will be
more subject to variation. Capitalization characteristics, while still
appropriate, may be more affected by external conditions. Ample alternative
liquidity is maintained.

Standard & Poor's ratings of commercial paper are graded into four
categories ranging from A for the highest quality obligations to D for the
lowest. A - Issues assigned its highest rating are regarded as having the
greatest capacity for timely payment. Issues in this category are delineated
with numbers 1, 2, and 3 to

B-27
<PAGE> 71
indicate the relative degree of safety. A-1 - This designation indicates
that the degree of safety regarding timely payment is either overwhelming or
very strong. Those issues determined to possess overwhelming safety
characteristics will be denoted with a plus (+) sign designation. A-2 -
Capacity for timely payments on issues with this designation is strong.
However, the relative degree of safety is not as high as for issues designated
A-1.

Duff & Phelps Rating Co. ("Duff & Phelps") commercial paper ratings
are consistent with the short-term rating criteria utilized by money market
participants. Duff & Phelps commercial paper ratings refine the traditional 1
category. The majority of commercial issuers carry the higher short-term
rating yet significant quality differences within that tier do exist. As a
consequence, Duff & Phelps has incorporated gradations of 1+ and 1-to assist
investors in recognizing those differences.

Duff 1+ - Highest certainty of time repayment. Short-term liquidity,
including internal operating factors and/or access to alternative sources of
funds, is outstanding, and safety is just below risk-free U.S. Treasury
short-term obligations. Duff 1 - Very high certainty of timely payment.
Liquidity factors are excellent and supported by good fundamental protection
factors. Risk factors are minor. Duff 1- - High certainty of timely payment.
Liquidity factors are strong and supported by good fundamental protection
factors. Risk factors are very small. Duff 2 - Good certainty of timely payment.
Liquidity factors and company fundamentals are sound. Although ongoing funding
needs may enlarge total financing requirements, access to capital markets is
good. Risk factors are small. Duff 3 - Satisfactory liquidity and other
protection factors, qualify issue as investment grade. Risk factors are larger
and subject to more variation. Nevertheless, timely payment is expected. Duff 4
- - Speculative investment characteristics. Liquidity is not sufficient to insure
against disruption in debt service. Operating factors and market access may be
subject to a high degree of variation. Duff 5 - Default.

The short-term ratings of Fitch Investor Services, Inc. ("Fitch")
apply to debt obligations that are payable on demand or have original
maturities of generally up to three years, including commercial paper,
certificates of deposit, medium-term notes, and municipal and investment notes.
The short-term rating places greater emphasis than a long-term rating on the
existence of liquidity necessary to meet the issuer's obligations in a timely
manner. Fitch short-term ratings are as follows: F-1+ Exceptionally Strong
Credit Quality - Issues assigned this rating are regarded as having the
strongest degree of assurance for timely payment. F-1 Very Strong Credit
Quality -Issues assigned this rating reflect an assurance of timely payment
only slightly less in degree than issues rated F-1+. F-2 Good Credit Quality -
Issues assigned this

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<PAGE> 72
rating have a satisfactory degree of assurance for timely payment, but the
margin of safety is not as great as for issues assigned F-1+ and F-1 ratings.
F-3 Fair Credit Quality -Issues assigned this rating have characteristics
suggesting that the degree of assurance for timely payment is adequate,
however, near-term adverse changes could cause these securities to be rated
below investment grade. F-5 Weak Credit Quality - Issues assigned this rating
have characteristics suggesting a minimal degree of assurance for timely
payment and are vulnerable to near-term adverse changes in financial and
economic conditions. D Default -Issues assigned this rating are in actual or
imminent payment default. LOC - The symbol LOC indicates that the rating is
based on a letter of credit issued by a commercial bank.

Thomson BankWatch, Inc. ("BankWatch") short-term ratings apply only to
unsecured instruments that have a maturity of one year or less. These
short-term ratings specifically assess the likelihood of an untimely payment of
principal and interest. TBW-1 is the highest category, which indicates a very
high degree of likelihood that principal and interest will be paid on a timely
basis. TBW-2 is the second highest category and, while the degree of safety
regarding timely repayment of principal and interest is strong, the relative
degree of safety is not as high as for issues rated TBW-1.

CORPORATE DEBT SECURITIES. Moody's rates the long-term debt
securities issued by various entities from "Aaa" to "C." Aaa - Best quality.
These securities carry the smallest degree of investment risk and are generally
referred to as "gilt edge." Interest payments are protected by a larger, or by
an exceptionally stable margin and principal is secure. While the various
protective elements are likely to change, such changes as can be visualized are
more unlikely to impair the fundamentally strong position of these issues. Aa
- - High quality by all standards. They are rated lower than the best bond
because margins of protection may not be as large as in Aaa securities,
fluctuation of protective elements may be of greater amplitude, or there may be
other elements present that make the long-term risks appear somewhat greater.
A - Upper medium grade obligations. These bonds possess many favorable
investment attributes. Factors giving security to principal and interest are
considered adequate, but elements may be present that suggest a susceptibility
to impairment sometime in the future. Baa - Medium grade obligations.
Interest payments and principal security appear adequate for the present but
certain protective elements may be lacking or may be characteristically
unreliable over any great length of time. Such bonds lack outstanding
investment characteristics and, in fact, have speculative characteristics as
well. Ba - Have speculative

B-29
<PAGE> 73
elements; future cannot be considered as well assured. The protection of
interest and principal payments may be very moderate and thereby not well
safeguarded during both good and bad times over the future. Bonds in this class
are characterized by uncertainty of position. B - Generally lack characteristics
of the desirable investment assurance of interest and principal payments or of
maintenance of other terms of the contract over any long period of time may be
small. Caa - Of poor standing. Issues may be in default or there may be present
elements of danger with respect to principal or interest. Ca - Speculative in a
high degree; often in default or have other marked shortcomings. C - Lowest
rated class of bonds; can be regarded as having extremely poor prospects of ever
attaining any real investment standings.

Standard & Poor's rates the long-term securities debt of various
entities in categories ranging from "AAA" to "D" according to quality. AAA -
Highest rating. Capacity to pay interest and repay principal is extremely
strong. AA - High grade. Very strong capacity to pay interest and repay
principal. Generally, these bonds differ from AAA issues only in a small degree.
A - Have a strong capacity to pay interest and repay principal, although they
are somewhat more susceptible to the adverse effects of change in circumstances
and economic conditions than debt in higher rated categories. BBB - Regarded as
having adequate capacity to pay interest and repay principal. These bonds
normally exhibit adequate protection parameters, but adverse economic conditions
or changing circumstances are more likely to lead to a weakened capacity to pay
interest and repay principal than for debt in higher rated categories. BB, B,
CCC, CC, C - Regarded, on balance, as predominately speculative with respect to
capacity to pay interest and repay principal in accordance with the terms of the
obligation. BB indicated the lowest degree of speculation and C the highest
degree of speculative. While this debt will likely have some quality and
protective characteristics, these are outweighed by large uncertainties or major
risk exposures to adverse conditions. C1 - Reserved for income bonds on which no
interest is being paid. D - In default and payment of interest and/or repayment
of principal is in arrears.

Fitch rates the long-term debt securities issued by various entities in
categories "AAA" to "D" according to quality. AAA is considered to be investment
grade and of the highest credit quality. The ability to pay interest and repay
principal is exceptionally strong. AA is considered to be investment grade and
of very high credit quality. The ability to pay interest and repay principal is
very strong, although not quite as strong as AAA issues. A is considered to be
investment grade and of high credit

B-30
<PAGE> 74
quality. The ability to pay interest and repay principal is strong, but these
issues may be more vulnerable to adverse changes in economic conditions and
circumstances than higher rated issues. BBB is considered to be investment
grade and of satisfactory credit quality. The ability to pay interest and
repay principal is adequate. These issues are more likely to be affected by
adverse changes in economic conditions and circumstances and, therefore, impair
timely payment. The likelihood that the ratings of these issues will fall
below investment grade is higher than for issues with higher ratings. BB is
considered speculative. The ability to pay interest and repay principal may be
affected over time by adverse economic changes. B is considered highly
speculative. The probability of continued timely payment of principal and
interest reflects the obligor's limited margin of safety and the need for
reasonable business and economic activity throughout the life of the issue.
CCC issues are considered to have certain identifiable characteristics which
may lead to default. The ability to meet obligations requires an advantageous
business and economic environment. CC issues are minimally protected and
default in payment of interest and/or principal seems probable over time.
Issues rated C are in imminent default in payment of interest or principal.
DDD, DD, and D issues are in default on interest and/or principal payments and
are extremely speculative. Plus(+) and minus(-) signs are used with a rating
symbol to indicate the relative position within the rating category.

Duff & Phelps rates long-term debt specifically to credit quality,
i.e., the likelihood of timely payment for principal and interest. AAA is
considered the highest quality. AA is considered high quality. A is regarded
as good quality. BBB is considered to be investment grade and of satisfactory
credit quality. BB and B are considered to be non-investment grade and CCC is
regarded as speculative. Ratings in the long-term debt categories may include
a plus(+) or minus(-) designation which indicates where within the respective
category the issue is placed.

BankWatch rates the long-term debt securities issued by various
entities either AAA or AA. AAA is the highest category, which indicates the
ability to repay principal and interest on a timely basis is very high. AA is
the second highest category, which indicates a superior ability to repay
principal and interest on a timely basis with limited incremental risk versus
issues rated in the highest category. Ratings in the long-term debt categories
may include a plus (+) or minus (-) designation which indicates where within
the respective category the issue is placed.

INVESTMENT RESTRICTIONS

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The Trust has adopted certain investment restrictions for each
Portfolio that cannot be changed without approval by a majority of its
outstanding voting securities. Such majority is defined as the vote of the
lesser of (i) 67% or more of the outstanding shares of the Portfolios present
at a meeting, if the holders of more than 50% of the outstanding shares are
present in person or by proxy or (ii) more than 50% of the outstanding shares
of the Portfolios.

INVESTMENT RESTRICTIONS OF THE CASH MANAGEMENT PORTFOLIO

The Cash Management Portfolio has adopted the following restrictions
that are fundamental policies. These fundamental policies, as well as the Cash
Management Portfolio's investment objective, cannot be changed without approval
by a majority of its outstanding voting securities. All percentage limitations
expressed in the following investment restrictions are measured immediately
after the relevant transaction is made. The Cash Management Portfolio may not:

1. Invest more than 5% of the value of its total assets in the
securities of any one issuer, provided that this limitation shall apply only to
75% of the value of the Portfolio's total assets, and, provided further, that
the limitation shall not apply to obligations of the government of the U.S. or
of any corporation organized as an instrumentality of the U.S. under a general
act of Congress.

2. As to 75% of its total assets, purchase more than 10% of the
outstanding voting class of securities of an issuer.

3. Invest more than 25% of the Portfolio's total assets in the
securities of issuers in the same industry. Obligations of the U.S.
Government, its agencies and instrumentalities, are not subject to this 25%
limitation on industry concentration. In addition, the Portfolio may, if
deemed advisable, invest more than 25% of its assets in the obligations of
domestic commercial banks.

4. Make loans to others except for the purchase of the debt
securities listed above under its Investment Policies. The Portfolio may,
however, enter into repurchase agreements.

5. Borrow money, except from banks for temporary purposes, and
then in an amount not in excess of 5% of the value of the Portfolio's total
assets. Moreover, in the event that the asset coverage for such borrowings
falls below 300%, the Portfolio will reduce within three days the amount of its
borrowings in order to provide for 300% asset coverage.

B-32
<PAGE> 76
6. Sell securities short except to the extent that the Portfolio
contemporaneously owns or has the right to acquire at no additional cost
securities identical to those sold short.

7. Act as underwriter of securities issued by others, engage in
distribution of securities for others, or make investments in other companies
for the purpose of exercising control or management.

In addition to the foregoing, the Cash Management Portfolio has
adopted the following non-fundamental policies (which may be changed by the
Trustees without shareholder approval). Under these restrictions, the Cash
Management Portfolio may not:

a. Enter into any repurchase agreement maturing in more than
seven days or invest in any other illiquid security if, as a result, more than
10% of the Portfolio's total assets would be so invested.

b. Pledge or hypothecate its assets.

c. Invest in puts, calls, straddles, spreads or any combination
thereof, except as permitted by the Prospectus and Statement of Additional
Information, as amended from time to time.

d. Invest in securities of other investment companies except to
the extent permitted by applicable law and the Prospectus and Statement of
Additional Information, as amended from time to time.

e. Invest more than 5% of its assets (measured at the time of
purchase) in the securities of any one issuer (other than the U.S.
Government); provided however, that the Cash Management Portfolio may invest,
as to 25% of its assets, more than 5% of its assets in certain high quality
securities (as defined in the Rule) of a single issuer for a period of up to
three business days. Notwithstanding fundamental investment restriction Number
1 above, in order to comply with Rule 2a-7 under the 1940 Act, the Cash
Management Portfolio has adopted this more restrictive policy The purchase by
the Cash Management Portfolio of securities that have "put" or "stand-by"
commitment features are not considered "puts" for purposes of non-fundamental
investment restriction C above.

INVESTMENT RESTRICTIONS OF THE CORPORATE BOND PORTFOLIO, GLOBAL BOND PORTFOLIO,
HIGH-YIELD BOND PORTFOLIO, WORLDWIDE HIGH INCOME PORTFOLIO,
SUNAMERICA BALANCED PORTFOLIO, BALANCED/PHOENIX INVESTMENT COUNSEL PORTFOLIO,
ASSET ALLOCATION PORTFOLIO, UTILITY
PORTFOLIO, GROWTH-INCOME PORTFOLIO, FEDERATED VALUE PORTFOLIO, VENTURE VALUE
PORTFOLIO, ALLIANCE GROWTH PORTFOLIO,

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<PAGE> 77

GROWTH/PHOENIX INVESTMENT COUNSEL PORTFOLIO, PUTNAM GROWTH PORTFOLIO, REAL
ESTATE PORTFOLIO, AGGRESSIVE GROWTH PORTFOLIO, INTERNATIONAL GROWTH
AND INCOME PORTFOLIO, GLOBAL EQUITIES PORTFOLIO, INTERNATIONAL DIVERSIFIED
EQUITIES PORTFOLIO AND EMERGING MARKETS PORTFOLIO

The Corporate Bond Portfolio, Global Bond Portfolio, High-Yield Bond
Portfolio, Worldwide High Income Portfolio, SunAmerica Balanced Portfolio,
Balanced/Phoenix Investment Counsel Portfolio, Asset Allocation Portfolio,
Utility Portfolio, Growth-Income Portfolio, Federated Value Portfolio, Venture
Value Portfolio, Alliance Growth Portfolio, Growth/Phoenix Investment Counsel
Portfolio, Putnam Growth Portfolio, Real Estate Portfolio, Aggressive Growth
Portfolio, International Growth and Income Portfolio, Global Equities
Portfolio, International Diversified Equities Portfolio and Emerging Markets
Portfolio have each adopted the following investment restrictions that are
fundamental policies. These fundamental policies cannot be changed without the
approval of the holders of a majority of the outstanding voting securities of
the respective Portfolio. All percentage limitations expressed in the
following investment restrictions are measured immediately after the relevant
transaction is made. These Portfolios may not:

1. Other than the Global Bond, Worldwide High Income and
International Diversified Equities Portfolios, invest more than 5% of the value
of the total assets of a Portfolio in the securities of any one issuer,
provided that this limitation shall apply only to 75% of the value of the
Portfolio's total assets and, provided further, that the limitation shall not
apply to obligations issued or guaranteed by the government of the United
States or of any of its agencies or instrumentalities.

2. As to 75% of its total assets, purchase more than 10% of any
class of the outstanding voting securities of an issuer. This restriction does
not apply to the Global Bond, International Diversified Equities and Worldwide
High Income Portfolios.

3. Invest more than 25% of the Portfolio's total assets in the
securities of issuers in the same industry, except that the Utility Portfolio
will invest at least 25% of its total assets in the securities of utility
companies and the Real Estate Portfolio will invest at least 25% of its total
assets in the securities of real estate companies. Obligations of the U.S.
Government, its agencies and instrumentalities are not subject to this 25%
limitation on industry concentration. The Portfolio may, if deemed advisable,
invest more than 25% of its assets in the obligations of domestic commercial
banks. With respect to the Real Estate

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<PAGE> 78
Portfolio, as to utility companies, the gas, electric, water and telephone
businesses will be considered separate industries.

4. Invest in real estate (including in the case of all Portfolios
except the Real Estate Portfolio limited partnership interests, but excluding
in the case of all Portfolios securities of companies, such as real estate
investment trusts, which deal in real estate or interests therein); provided
that a Portfolio may hold or sell real estate acquired as a result of the
ownership of securities. This limitation shall not prevent a Portfolio from
investing in securities secured by real estate or interests therein.

5. Purchase commodities or commodity contracts; except that any
Portfolio may engage in transactions in put and call options on securities,
indices and currencies, forward and futures contracts on securities, indices
and currencies, put and call options on such futures contracts, forward
commitment transactions, forward foreign currency exchange contracts,
interest-rate, mortgage and currency swaps and interest-rate floors and caps.

6. Borrow money, except to the extent permitted by applicable
law.

7. Purchase securities on margin.

8. Make loans to others except for (a) the purchase of debt
securities; (b) entering into repurchase agreements; and (c) the lending of its
portfolio securities.

In addition to the foregoing, the Global Bond, Corporate Bond,
High-Yield Bond, Worldwide High Income, SunAmerica Balanced, Balanced/Phoenix
Investment Counsel, Asset Allocation, Utility, Growth-Income, Federated Value,
Venture Value, Alliance Growth, Growth/Phoenix Investment Counsel, Provident
Growth, Global Equities, International Diversified Equities, Aggressive Growth,
International Growth and Income, Real Estate and Emerging Markets Portfolios
have each adopted the following non-fundamental policies (which may be changed
by the Trustees without shareholder approval). Under these restrictions, such
Portfolios may not:

a. Enter into any repurchase agreement maturing in more than
seven days or investing in any other illiquid security if, as a result, more
than 15% of a Portfolio's total assets would be so invested.

b. Invest in securities of other investment companies, except to
the extent permitted by applicable law and the Prospectus and Statement of
Additional Information, as amended from time to time.

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<PAGE> 79

c. Other than the Emerging Markets Portfolio, pledge, mortgage or
hypothecate its assets, except to the extent necessary to secure permitted
borrowings and, to the extent related to the segregation of assets in
connection with the writing of covered put and call options and the purchase of
securities or currencies on a forward commitment or delayed-delivery basis and
collateral and initial or variation margin arrangements with respect to forward
contracts, options, futures contracts and options on futures contracts. In
addition, the Corporate Bond, High-Yield Bond, Worldwide High Income,
SunAmerica Balanced, Aggressive Growth, Federated Value and Utility Portfolios
may pledge assets in reverse repurchase agreements.

d. Invest in companies for the purpose of exercising control or
management.

e. Engage in underwriting of securities issued by others, except
to the extent it may be deemed to be acting as an underwriter in the purchase
and resale of portfolio securities.

f. Sell securities short except to the extent permitted by
applicable law.

g. Invest in puts, calls, straddles, spreads or any combination
thereof, except as permitted by the Prospectus and Statement of Additional
Information, as amended from time to time.

TRUST OFFICERS AND TRUSTEES

The Trustees and executive officers of the Trust, their ages and
principal occupations for the past five years are set forth below. Each
Trustee also serves as a trustee of the Anchor Pathway Fund. Unless otherwise
noted, the address of each executive officer and trustee is 1 SunAmerica
Center, Los Angeles, California 90067-6022.

<TABLE>
<CAPTION>
Name, Age and Position(s) Principal Occupation(s) During Past Five Years
------------------------- -----------------------------------------------
Held with the Trust
-------------------
<S> <C>
RICHARDS D. BARGER, 68, Trustee Senior Partner, Law Firm of Barger & Wolen; former
Director, Anchor National Life Insurance Company
("Anchor National")(from 1980 to 1986).

JAMES K. HUNT, * 45, Trustee, Chairman and Executive Vice President, SunAmerica Investments, Inc.
President (1993 to present); President, SunAmerica Corporate
Finance (since January 1994); Senior Vice President,
SunAmerica Investments, Inc. (1990-1993).
</TABLE>

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<PAGE> 80

<TABLE>
<CAPTION>
Name, Age and Position(s) Principal Occupation(s) During Past Five Years
------------------------- -----------------------------------------------
Held with the Trust
-------------------
<S> <C>
NORMAN J. METCALFE, * 54, Trustee Vice Chairman and Chief Financial Officer, The Irvine
Company (March 1993 to Present); Executive Vice
President (1986-1992) and Director (1984-1993),
SunAmerica Inc.; formerly, President, SunAmerica
Investments, Inc.(1988-1992); and Executive Vice
President and Director, Anchor National (1986-1992).

ALLAN L. SHER, 65, Director, Board of Governors, American Stock Exchange
Trustee (1991 to present); Former Chairman and Chief Executive
Officer, Bateman Eichler, Hill Richards (securities
firm) (1990-1992); Vice Chairman (1989-1990), Senior
Executive Vice President (1985-1989) and Executive Vice
President (1983-1985), Drexel Burnham Lambert
Incorporated.

WILLIAM M. WARDLAW, 50, Partner, Freeman Spogli & Co., Incorporated (privately
Trustee owned merchant banking firm) (1988-Present); Managing
Partner, Riordan & McKinzie (law firm specializing in
corporate and securities law) (1984-1988); Partner
(1980-1984) and Associate (1972-1980), O'Melveny &
Meyers (law firm).

SCOTT L. ROBINSON, 51, Senior Vice President, Senior Vice President and Controller, SunAmerica Inc.
Treasurer and Controller (since 1991); Senior Vice President of Anchor National
(since 1988); Vice President and Controller, SunAmerica
Inc. (1986-1991), (joined SunAmerica Inc. in 1978).

SUSAN L. HARRIS, 39, Senior Vice President (since November 1995), Secretary
Vice President, Counsel (since 1989) and General Counsel - Corporate Affairs (since
and Secretary December 1994), SunAmerica Inc.; Senior Vice President and
Secretary, Anchor National (since 1990); Joined SunAmerica
Inc. in 1985.

PETER C. SUTTON, 32 Senior Vice President, SunAmerica since April 1997;
Vice President Treasurer, SunAmerica Mutual Funds, since February 1996;
Vice President, SunAmerica Series Trust, Anchor Pathway
Fund, since October 1994; Controller, SunAmerica Mutual
Funds (March 1993 to February 1996); Assistant Controller,
SunAmerica Mutual Funds (1990-1993).

</TABLE>

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<PAGE> 81
* A trustee who may be deemed to be an "interested person" of the Trust as
that term is defined in the 1940 Act.

The Trust pays no salaries or compensation to any of its officers, all
of whom are officers or employees of Anchor National Life Insurance Company or
its affiliates. An annual fee of $7,000, plus $500 for each meeting attended,
and expenses are paid to each Trustee who is not an officer or employee of
Anchor National Life Insurance Company or its affiliates for attendance at
meetings of the Board of Trustees. All other Trustees receive no remuneration
from the Trust.

The following table sets forth information summarizing the
compensation of each of the Trustees for his services as Trustee for the fiscal
year ended November 30, 1996.

COMPENSATION TABLE

<TABLE>
<CAPTION>
Pension or Total Compensation from
Retirement Registrant and Fund
Aggregate Benefits Accrued Complex Paid to
Compensation from as Part of Fund Trustees*
Registrant Expenses
Trustee
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Richards D. Barger $9,000 - $22,000
- -------------------------------------------------------------------------------------------------------------------
Frank L. Ellsworth** $9,000 - $22,000
- -------------------------------------------------------------------------------------------------------------------
Gordon F. Hampton** $8,500 - $20,250
- -------------------------------------------------------------------------------------------------------------------
Norman J. Metcalfe $8,500 - $20,250
</TABLE>

* Information is as of November 30, 1996 for the two Funds in the
complex which pay fees to these directors/trustees (the Trust and
Anchor Pathway Fund).
** These individuals are no longer Trustees of the Trust.

INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT

The Trust, on behalf of each Portfolio, entered into an Investment
Advisory and Management Agreement with SunAmerica Asset Management Corp. to
handle the management of the Trust and its day to day affairs.

The Investment Advisory and Management Agreement (except with respect
to the SunAmerica Balanced, Utility, Federated Value,

B-38
<PAGE> 82

Aggressive Growth, International Growth and Income, Real Estate and Emerging
Markets Portfolios) continues in effect from year to year, in accordance with
its terms, unless terminated, and may be renewed from year to year as to each
Portfolio for so long as such renewal is specifically approved at least
annually by (i) the Board of Trustees, or by the vote of a majority (as defined
in the 1940 Act) of the outstanding voting securities of each relevant
Portfolio, and (ii) the vote of a majority of Trustees who are not parties to
the Agreement or interested persons (as defined in the 1940 Act) of any such
party, cast in person, at a meeting called for the purpose of voting on such
approval. The Investment Advisory and Management Agreement was last so
approved by the Board of Trustees at a meeting held on July 18, 1996. With
respect to the SunAmerica Balanced, Utility, Federated Value and Aggressive
Growth Portfolios, the Agreement will continue in effect until September 16,
1997, unless terminated, and may be renewed from year to year thereafter in the
manner set forth above. With respect to the International Growth and Income,
Real Estate and Emerging Markets Portfolios, the Agreement will continue in
effect until April 15, 1999, unless terminated, and may be renewed from year to
year thereafter in the manner set forth above. The Agreement also provides
that it may be terminated by either party without penalty upon 60 days' written
notice to the other party. The Agreement provides for automatic termination
upon assignment.

The Investment Advisory and Management Agreement provides that the
Adviser shall act as investment adviser to the Trust, manage the Trust's
investments, administer its business affairs, furnish offices, necessary
facilities and equipment, provide clerical, bookkeeping and administrative
services, and permit any of the Adviser's officers or employees to serve
without compensation as Trustees or officers of the Trust if duly elected to
such positions. Under the Agreement, the Trust agrees to assume and pay
certain charges and expenses of its operations, including: direct charges
relating to the purchase and sale of portfolio securities, interest charges,
fees and expenses of independent legal counsel and independent accountants,
cost of stock certificates and any other expenses (including clerical expenses)
of issue, sale, repurchase or redemption of shares, expenses of registering
and qualifying shares for sale, expenses of printing and distributing reports,
notices and proxy materials to shareholders, expenses of data processing and
related services, shareholder recordkeeping and shareholder account service,
expenses of printing and distributing prospectuses and statements of additional
information, expenses of annual and special shareholders' meetings, fees and
disbursements of transfer agents and custodians, expenses of disbursing
dividends and distributions, fees and expenses of Trustees who are not
employees of the Adviser or its affiliates, membership dues in the Investment
Company Institute or any similar organization, all taxes

B-39
<PAGE> 83
and fees to Federal, state or other governmental agencies, insurance premiums
and extraordinary expenses such as litigation expenses.

Under the terms of the Advisory Agreement, the Adviser is not liable
to the Trust, or to any other person, for any act or omission by it or for any
losses sustained by the Trust or its shareholders, except in the case of
willful misfeasance, bad faith, gross negligence or reckless disregard of duty.

Each Portfolio pays its actual expenses for custodian services and a
portion of the Custodian's costs determined by the ratio of portfolio assets to
the total assets of the Trust, brokerage commissions or transaction costs, and
registration fees. Subject to supervision of the Board of Trustees, fees for
independent accountants, legal counsel, costs of reports of notices to
shareholders will be allocated based on the relative net assets of each
Portfolio. With respect to audit or legal fees clearly attributable to one
Portfolio, they will be assessed, subject to review by the Board of Trustees,
against that Portfolio.

As compensation for its services, the Adviser receives from the Trust
a fee, accrued daily and payable monthly, based on the net assets of each
Portfolio. The following table sets forth the total advisory fees received by
the Adviser from each Portfolio pursuant to the Investment Advisory and
Management Agreement for the fiscal years ended November 30, 1996, 1995 and
1994.

ADVISORY FEES

<TABLE>
<CAPTION>
Portfolio 1996 1995 1994
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash Management $ 694,655 $ 438,400 $ 324,890
- -------------------------------------------------------------------------------
Corporate Bond (formerly, Fixed Income)
$ 230,031 $ 144,546 $ 117,895
- -------------------------------------------------------------------------------
Global Bond $ 458,390 $ 365,313 $ 291,574
- -------------------------------------------------------------------------------
High-Yield Bond $ 638,948 $ 478,203 $ 390,246
- -------------------------------------------------------------------------------
Worldwide High Income $ 368,821 $ 143,765 $ 9,545**
- -------------------------------------------------------------------------------
SunAmerica Balanced $ 20,449* -- --
- -------------------------------------------------------------------------------
Balanced/Phoenix Investment Counsel
$ 354,683 $ 92,499 $ 745**
- -------------------------------------------------------------------------------
Asset Allocation $1,616,647 $1,000,248 $ 547,474
- -------------------------------------------------------------------------------
Utility $ 13,890* -- --
- -------------------------------------------------------------------------------
Growth-Income $1,476,902 $ 794,078 $ 475,666
- -------------------------------------------------------------------------------
Federated Value $ 23,973* -- --
- -------------------------------------------------------------------------------
Venture Value $2,305,064 $ 504,014 $ 1,592**
- -------------------------------------------------------------------------------
Alliance Growth $1,522,222 $ 635,979 $ 287,322
- -------------------------------------------------------------------------------
</TABLE>

B-40
<PAGE> 84
<TABLE>
<S> <C> <C> <C>
- -------------------------------------------------------------------------------
Growth/Phoenix Investment Counsel $1,072,976 $ 835,634 $ 642,732
- -------------------------------------------------------------------------------
Putnam Growth (Formerly Provident $1,073,769 $ 785,809 $ 532,538
Growth)***
- -------------------------------------------------------------------------------
Aggressive Growth $ 65,277* -- --
- -------------------------------------------------------------------------------
Global Equities $1,627,510 $1,185,831 $ 884,882
- -------------------------------------------------------------------------------
International Diversified Equities
$1,025,593 $ 283,908 $ 10,202**
- -------------------------------------------------------------------------------
</TABLE>

* For the period 6/3/96 (commencement of operations) through 11/30/96
** For the period 10/28/94 (commencement of operations) through 11/30/94
*** Until April 15, 1997, the Advisory Agreement with respect to the
Putnam Growth Portfolio provided for an advisory fee payable to the
Adviser at the following annual rates: .85% on the first $50 million
of average daily net assets; .80% on the next $100 million; .70% on
the next $100 million; .65% on the next $100 million; and .60% over
$350 million. The Advisory Agreement relating to the Putnam Growth
Portfolio was amended as of April 15, 1997 to provide for the
following annual fee rates: .85% on the first $150 million of average
daily net assets; .80% on the next $150 million; and .70% over $300
million.

PERSONAL TRADING. The Trust and the Adviser have adopted a written
Code of Ethics (the "Code") which prescribes general rules of conduct and sets
forth guidelines with respect to personal securities trading by "Access
Persons" thereof. An Access Person as defined in the Code is an individual who
is a trustee, director, officer, general partner or advisory person of the
Trust or the Adviser. The guidelines on personal securities trading include:
(i) securities being considered for purchase or sale, or purchased or sold, by
any Investment Company advised by the Adviser, (ii) Initial Public Offerings,
(iii) private placements, (iv) blackout periods, (v) short-term trading
profits, (vi) gifts, and (vii) services as a director. These guidelines are
substantially similar to those contained in the Report of the Advisory Group on
Personal Investing issued by the Investment Company Institute's Advisory Panel.
The Adviser reports to the Board of Trustees on a quarterly basis, as to
whether there were any violations of the Code by Access Persons of the Trust or
any Subadviser during the quarter.

The Subadvisers have adopted a written Code of Ethics, the provisions
of which are materially similar to those in the Code, and have, with exception
to Putnam, undertaken to comply with the provisions of the Code to the extent
such provisions are more restrictive. Further, the Subadvisers report to the
Adviser on a quarterly basis, as to whether there were any Code of Ethics
violations by employees thereof who may be deemed Access Persons of the Trust.
In turn, the Adviser reports to the Board of Trustees as to whether there were
any violations of the Code by Access Persons of the Trust or any Subadviser.

B-41
<PAGE> 85

SUBADVISORY AGREEMENTS

Alliance Capital Management L.P. ("Alliance"), Goldman Sachs Asset
Management ("GSAM"), a separate division of Goldman, Sachs & Co., Goldman
Sachs Asset Management International, ("GSAM-International"), an affiliate of
Goldman, Sachs & Co., Morgan Stanley Asset Management Inc., Phoenix Investment
Counsel, Inc., Provident Investment Counsel, Inc., Davis Selected Advisers,
L.P., Putnam Investment Management, Inc. and Federated Investment Counseling
act as Subadvisers to certain of the Trust's Portfolios pursuant to various
Subadvisory Agreements with SAAMCo. Under the Subadvisory Agreements, the
Subadvisers manage the investment and reinvestment of the assets of the
respective Portfolios for which they are responsible. Each of the Subadvisers
is independent of SAAMCo and discharges its responsibilities subject to the
policies of the Trustees and the oversight and supervision of SAAMCo, which
pays the Subadvisers' fees.

The Adviser pays each Subadviser a monthly fee with respect to each
Portfolio for which the Subadviser performs services, computed on average daily
net assets, at the following annual rates:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
Subadviser Portfolio Fee
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
Alliance Alliance Growth and .35% on the first $50 million
Growth-Income Portfolios .30% on the next $100 million
.25% on the next $150 million
.20% on the next $200 million
.15% thereafter
------------------------------------------------------------------
Global Equities Portfolio .50% on the first $50 million
.40% on the next $100 million
.30% on the next $150 million
.25% thereafter
- ------------------------------------------------------------------------------------------------
Davis Selected Advisers, Venture Value and Real Estate .45% on the first $100 million
L.P. Portfolios .40% on the next $400 million
.35% thereafter
- ------------------------------------------------------------------------------------------------
Federated Investment Corporate Bond .30% on the first $25 million
Counseling Portfolio .25% on the next $25 million
.20% on the next $100 million
.15% thereafter
------------------------------------------------------------------
Federated Value and Utility .55% on the first $20 million
Portfolios .35% on the next $30 million
.25% on the next $100 million
.20% on the next $350 million
.15% thereafter
- ------------------------------------------------------------------------------------------------
GSAM Asset Allocation Portfolio .40% on the first $50 million
.30% on the next $100 million
.25% on the next $100 million
.20% thereafter
- ------------------------------------------------------------------------------------------------
</TABLE>

B-42
<PAGE> 86

<TABLE>
<S> <C> <C>
- ------------------------------------------------------------------------------------------------
GSAM-International Global Bond Portfolio .40% on the first $50 million
.30% on the next $100 million
.25% on the next $100 million
.20% thereafter
- ------------------------------------------------------------------------------------------------
Morgan Stanley Asset International Diversified Equities .65% on the first $350 million
Management Inc. and Worldwide High Income .60% thereafter
Portfolios
- ------------------------------------------------------------------------------------------------
Phoenix Investment Growth/Phoenix Investment Counsel .35% on the first $50 million
Counsel, Inc. and Balanced/Phoenix Investment .30% on the next $100 million
Counsel Portfolios .25% on the next $150 million
.20% on the next $200 million
.15% thereafter
- ------------------------------------------------------------------------------------------------

Putnam Investment Putnam Growth Portfolio .50% on the first $150 million
Management, Inc. .45% on the next $150 million
.35% thereafter
- ------------------------------------------------------------------------------------------------
Emerging Markets Portfolio 1.00% on the first $150 million
.95% on the next $150 million
.85% thereafter
- ------------------------------------------------------------------------------------------------
International Growth and Income .65% on the first $150 million
Portfolio .55% on the next $150 million
.45% thereafter

- ------------------------------------------------------------------------------------------------
</TABLE>

The following table sets forth the fees paid to the Subadvisers for
the fiscal years ended November 30, 1996, 1995 and 1994.

SUBADVISORY FEES

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
Subadviser Portfolio 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alliance Growth $691,140 $306,832 $143,523
Alliance Growth-Income $673,445 $379,671 $232,937
--------------------------------------------------------------------------------
Global Equities $811,790 $616,892 $467,441
- -------------------------------------------------------------------------------------------------------------
Davis Selected Advisers,
L.P. Venture Value $1,252,661 $281,866 $895*
- -------------------------------------------------------------------------------------------------------------
Asset Allocation $743,084 $485,722 $275,339
--------------------------------------------------------------------------------
GSAM Corporate Bond***
$55,524 $72,273 $58,947
- -------------------------------------------------------------------------------------------------------------
GSAM International
Global Bond $238,488 $194,306 $155,506
- -------------------------------------------------------------------------------------------------------------
Growth/Phoenix
Phoenix Investment Investment Counsel
Counsel, Inc. $505,458 $399,134 $310,107

</TABLE>

B-43
<PAGE> 87
<TABLE>
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
Balanced/
Phoenix Invest-ment
Counsel $176,158 $46,249 $372*
- -------------------------------------------------------------------------------------------------------------
Provident Investment
Counsel, Inc.+ Provident
Growth $614,720 $452,955 $310,398
- -------------------------------------------------------------------------------------------------------------
Worldwide High
Income $239,733 $93,447 $6,204*
Morgan Stanley Asset --------------------------------------------------------------------------------
Management International
Inc. Diversified
Equities $666,635 $184,540 $6,631*
- -------------------------------------------------------------------------------------------------------------
Federated Investment Corporate Bond $48,744**** -- --
--------------------------------------------------------------------------------
Counseling Federated
Value $17,580** -- --
--------------------------------------------------------------------------------
Utility $10,186** -- --
- -------------------------------------------------------------------------------------------------------------
</TABLE>

* For the period 10/28/94 (commencement of operations) through 11/30/94
** For the period 6/3/96 (commencement of operations) through 11/30/96
*** GSAM served as Subadviser for the Corporate Bond Portfolio from
7/1/93(commencement of operations) through 6/3/96
**** For the period 6/3/96 through 11/30/96
+ Until April 15, 1997, Provident Investment Counsel, Inc. served as
Subadviser to the Putnam Growth Portfolio (formerly named the
Provident Growth Portfolio). The Subadvisory fee was calculated at
the following annual rates: .50% on the first $50 million of average
daily net assets; .45% on the next $100 million; .35% on the next $100
million; .30% on the next $100 million; .25% over $350 million.

The Subadvisory Agreements (with the exception of the SunAmerica
Balanced, Putnam Growth, Aggressive Growth, Federated Value, Utility,
International Growth and Income, Real Estate and Emerging Markets Portfolios)
continue in effect from year to year, so long as such continuance is
specifically approved at least annually in accordance with the requirements of
the 1940 Act. They were last so approved on July 18, 1996. The Subadvisory
Agreements with respect to the Corporate Bond, Federated Value and Utility
Portfolios will expire on April 18, 1998. The Subadvisory Agreements with
respect to the Putnam Growth, International Growth and Income, Real Estate and
Emerging Markets Portfolios will expire on April 15, 1999. Such agreements may
be renewed from year to year thereafter, so long as such continuance is
approved at least annually in accordance with the requirements of the 1940 Act.
The Subadvisory Agreements provide that they will terminate in the event of an
assignment (as defined in the 1940 Act) or upon termination of the Advisory
Agreement. The Subadvisory Agreements may be terminated by the Trust, the
Adviser or the respective Subadviser upon 60 days' prior notice.

B-44
<PAGE> 88

DIVIDENDS, DISTRIBUTIONS AND FEDERAL TAXES

The Cash Management, Corporate Bond, High-Yield Bond, Federated Value
and Aggressive Growth Portfolios had capital loss carry-forwards of $68,
$769,710, $8,449,586, $16,874 and $248,317, respectively, at November 30, 1996.
To the extent not yet utilized, such losses will be available to each of the
Portfolios to offset future gains through 2002 and 2004. The utilization of
such losses will be subject to annual limitations under the Internal Revenue
Code.

PRICE OF SHARES

Shares of the Trust are currently offered only to the Variable
Separate Account. The Trust is open for business on any day the New York Stock
Exchange ("NYSE") is open for business. Shares are valued each day as of the
close of regular trading on the NYSE (generally, 4:00 p.m., Eastern time).
Each portfolio calculates the net asset value of each class of its shares
separately by dividing the total value of each class's net assets by the shares
of such class outstanding. The net asset value of a portfolio's shares will
also be computed on each other day in which there is a sufficient degree of
trading in such portfolio's securities that the net asset value of its shares
might be materially affected by changes in the values of the portfolio
securities; provided, however, that on such day the Trust receives a request to
purchase or redeem such portfolio's shares. The days and times of such
computation may, in the future, be changed by the Trustees in the event that
the portfolio securities are traded in significant amounts in markets other
than the NYSE, or on days or at times other than those during which the NYSE is
open for trading.

Stocks and convertible bonds and debentures traded on the NYSE are
valued at the last sale price on such exchange on the day of valuation, or if
there is no sale on the day of valuation, at the last-reported bid price.
Non-convertible bonds and debentures and other long-term debt securities
normally are valued at prices obtained for the day of valuation from a bond
pricing service, when such prices are available. In circumstances where the
Adviser or Subadviser deems it appropriate to do so, an over-the-counter or
exchange quotation (at the mean of representative quoted bid or asked prices
for such securities or, if such prices are not available, at prices for
securities of comparable maturity, quality and type) may be used. Securities
traded primarily on securities exchanges outside the United States are valued
at the last sale price on such exchanges on the day of valuation, or if there
is no sale on the day of valuation, at the last-reported bid price. U.S.
Treasury bills, and other obligations issued by the U.S. Government, its
agencies or instrumentalities, certificates of deposit issued

B-45
<PAGE> 89
by banks, corporate short-term notes and other short-term investments with
original or remaining maturities in excess of 60 days are valued at the mean of
representative quoted bid and asked prices for such securities or, if such
prices are not available, for securities of comparable maturity, quality and
type. Short-term securities with 60 days or less to maturity are amortized to
maturity based on their cost to the Trust if acquired within 60 days of
maturity or, if already held by the Trust on the 60th day, are amortized to
maturity based on the value determined on the 61st day. Options on currencies
purchased by a Portfolio are valued at their last bid price in the case of
listed options or at the average of the last bid prices obtained from dealers
in the case of OTC options. Futures contracts involving foreign currencies
traded on exchanges are valued at their last sale or settlement price as of the
close of such exchanges or if no sales are reported, at the mean between the
last reported bid and asked prices. Other securities are valued on the basis
of last sale or bid price (if a last sale price is not available) in what is,
in the opinion of the Adviser or Subadviser, the broadest and most
representative market, that may be either a securities exchange or the
over-the-counter market. Where quotations are not readily available,
securities are valued at fair value as determined in good faith by the Board of
Trustees. The fair value of all other assets is added to the value of
securities to arrive at the respective Portfolio's total assets.

A Portfolio's liabilities, including proper accruals of expense items,
are deducted from total assets. The net asset value of the respective
Portfolio is divided by the total number of shares outstanding to arrive at the
net asset value per share.

EXECUTION OF PORTFOLIO TRANSACTIONS

It is the policy of the Trust, in effecting transactions in portfolio
securities, to seek the best execution at the most favorable prices. The
determination of what may constitute best execution involves a number of
considerations, including the economic result to the Trust (involving both
price paid or received and any commissions and other costs), the efficiency
with which the transaction is effected where a large block is involved, the
availability of the broker to stand ready to execute potentially difficult
transactions and the financial strength and stability of the broker. Such
considerations are judgmental and are considered in determining the overall
reasonableness of brokerage commissions paid.

A factor in the selection of brokers is the receipt of research
services -- analyses and reports concerning issuers, industries, securities,
economic factors and trends -- and other statistical and factual information.
Research and other statistical and factual information provided by brokers is
considered to be in addition to

B-46
<PAGE> 90
and not in lieu of services required to be performed by the Adviser or
Subadviser.

The extent to which commissions may reflect the value of research
services cannot be presently determined. To the extent that research services
of value are provided by broker-dealers with or through whom the Adviser or
Subadviser places the Trust's portfolio transactions, the Adviser or Subadviser
may be relieved of expenses it might otherwise bear. Research services
furnished by broker-dealers could be useful and of value to the Adviser or
Subadviser in serving other clients as well as the Trust and research services
obtained by the Adviser or Subadviser as a result of the placement of portfolio
brokerage of other clients could be useful and of value in serving the Trust.

In the over-the-counter market, securities are generally traded on a
"net" basis with dealers acting as principal for their own accounts without a
stated commission, although the price of a security usually includes a profit
to the dealer. In underwritten offerings, securities are purchased at a fixed
price which includes an amount of compensation to the underwriter, generally
referred to as the underwriter's concession or discount. On occasion, certain
money market instruments may be purchased directly from an issuer, in which
case no commissions or discounts are paid. The Trust has obtained exemptive
orders from the Securities and Exchange Commission (the "SEC"), permitting the
Trust in certain circumstances to deal with securities dealers (that may be
deemed to be affiliated persons of affiliated persons of the Trust solely
because of a subadvisory relationship with one or more Portfolios) as a
principal in purchases and sales of certain securities, and to pay commissions,
fees or other remuneration to such securities dealers in connection with the
sale of securities to or by any of the Portfolios on a securities exchange
without complying with certain of the requirements of Rule 17e-1 under the 1940
Act.

Subject to the above considerations, the Adviser or a Subadviser may
use broker-dealer affiliates of the Adviser or a Subadviser, as a broker for
any Portfolio. In order for such broker-dealer to effect any portfolio
transactions for a Portfolio, the commissions, fees or other remuneration
received by the broker-dealer must be reasonable and fair compared to the
commissions, fees or other remuneration paid to other brokers in connection
with comparable transactions involving similar securities being purchased or
sold on a securities exchange during a comparable period of time. This
standard would allow such broker-dealer to receive no more than the
remuneration which would be expected to be received by an unaffiliated broker
in a commensurate arm's-length transaction. Furthermore, the Trustees of the
Trust, including a majority of the non-interested Trustees, have adopted
procedures which are reasonably designed to provide that any commissions, fees
or other

B-47
<PAGE> 91
remuneration paid to such broker-dealers are consistent with the foregoing
standard. These types of brokerage transactions are also subject to such
fiduciary standards as may be imposed upon the broker-dealers by applicable
law.

The following tables set forth the brokerage commissions paid by the
Portfolios and the amounts of the brokerage commissions which were paid to
affiliated broker-dealers of such Portfolios for the fiscal years ended
November 30, 1996, 1995 and 1994.

1996 BROKERAGE COMMISSIONS

<TABLE>
<CAPTION>
PERCENTAGE PAID TO
AGGREGATE BROKERAGE AMOUNT PAID TO AFFILIATED BROKER-
PORTFOLIO COMMISSIONS AFFILIATED BROKER- DEALERS
DEALERS
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash Management -- -- --
- -------------------------------------------------------------------------------------------------------------
Corporate Bond -- -- --
- -------------------------------------------------------------------------------------------------------------
Global Bond -- -- --
- -------------------------------------------------------------------------------------------------------------
High-Yield Bond $753 -- --
- -------------------------------------------------------------------------------------------------------------
Worldwide High Income -- -- --
- -------------------------------------------------------------------------------------------------------------
SunAmerica Balanced* $10,184 -- --
- -------------------------------------------------------------------------------------------------------------
Balanced/Phoenix Investment
Counsel $99,713 -- --
- -------------------------------------------------------------------------------------------------------------
Asset Allocation $256,864 $23,078 8.98%
- -------------------------------------------------------------------------------------------------------------
Utility* $9,359 -- --
- -------------------------------------------------------------------------------------------------------------
Growth-Income $469,309 -- --
- -------------------------------------------------------------------------------------------------------------
Federated Value* $14,785 -- --
- -------------------------------------------------------------------------------------------------------------
Venture Value $413,771 $3,792 0.92%
- -------------------------------------------------------------------------------------------------------------
Alliance Growth $672,137 -- --
Growth/Phoenix Investment Counsel $483,274 -- --
- -------------------------------------------------------------------------------------------------------------
Putnam Growth (Formerly Provident $144,932 -- --
Growth
- -------------------------------------------------------------------------------------------------------------
Aggressive Growth* $34,130 -- --
- -------------------------------------------------------------------------------------------------------------
Global Equities $1,022,821 -- --
- -------------------------------------------------------------------------------------------------------------
International Diversified
Equities $256,477 -- --
- -------------------------------------------------------------------------------------------------------------
</TABLE>

* For the period 6/3/96 (commencement of operation) through November 30,
1996.

B-48
<PAGE> 92
1995 BROKERAGE COMMISSIONS

<TABLE>
<CAPTION>
AMOUNT PAID TO PERCENTAGE PAID TO
AFFILIATED BROKER- AFFILIATED BROKER-
AGGREGATE DEALERS DEALERS
BROKERAGE
PORTFOLIO COMMISSIONS
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash Management -- -- --
- -------------------------------------------------------------------------------------------------------------
Corporate Bond* $562 $562 100%
- -------------------------------------------------------------------------------------------------------------
Global Bond -- -- --
- -------------------------------------------------------------------------------------------------------------
High-Yield Bond $9,100 -- --
- -------------------------------------------------------------------------------------------------------------
Worldwide High Income -- -- --
- -------------------------------------------------------------------------------------------------------------
Balanced/Phoenix Investment
Counsel $49,029 -- --
- -------------------------------------------------------------------------------------------------------------
Asset Allocation* $331,914 $35,946 10.83%
- -------------------------------------------------------------------------------------------------------------
Growth-Income $262,353 -- --
- -------------------------------------------------------------------------------------------------------------
Alliance Growth $353,849 -- --
Growth/Phoenix Investment Counsel $548,063 -- --
- -------------------------------------------------------------------------------------------------------------
Provident Growth (Formerly Provident $118,520 -- --
Growth
- -------------------------------------------------------------------------------------------------------------
Venture Value $184,729 -- --
- -------------------------------------------------------------------------------------------------------------
Global Equities $630,010 -- --
- -------------------------------------------------------------------------------------------------------------
International Diversified
Equities $117,482 -- --
- -------------------------------------------------------------------------------------------------------------
</TABLE>

* For the fiscal year ended November 30, 1995, the percentage of the
aggregate dollar amount of the transactions involving the payment of
commissions effected through affiliated brokers with respect to the
Corporate Bond Portfolio and Asset Allocation Portfolio were 10.34%
and 100%, respectively.

B-49
<PAGE> 93
1994 BROKERAGE COMMISSIONS

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
AGGREGATE AMOUNT PAID TO PERCENTAGE PAID TO
BROKERAGE AFFILIATED BROKER- AFFILIATED BROKER-
PORTFOLIO COMMISSIONS DEALER DEALER
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash Management -- -- --
- -------------------------------------------------------------------------------------------------------------
Corporate Bond -- -- --
- -------------------------------------------------------------------------------------------------------------
Global Bond -- -- --
- -------------------------------------------------------------------------------------------------------------
High-Yield Bond $4,927 -- --
- -------------------------------------------------------------------------------------------------------------
Worldwide High
Income* -- -- --
- -------------------------------------------------------------------------------------------------------------
Balanced/Phoenix
Investment
Counsel* $1,586 -- --
- -------------------------------------------------------------------------------------------------------------
Asset Allocation $130,727 $10,637 8.1%
- -------------------------------------------------------------------------------------------------------------
Growth-Income $187,474 $15,012** 8.0%
- -------------------------------------------------------------------------------------------------------------
Alliance Growth $195,332 $4,162** 2.1%
- -------------------------------------------------------------------------------------------------------------
Growth/Phoenix
Investment
Counsel $484,811 $8,300 1.7%
- -------------------------------------------------------------------------------------------------------------
Putnam Growth (Formerly
Provident Growth) $118,276 $3,963** 3.4%
- -------------------------------------------------------------------------------------------------------------
Venture Value* $4,404 -- --
- -------------------------------------------------------------------------------------------------------------
Global Equities $350,958 $17,858** 5.1%
- -------------------------------------------------------------------------------------------------------------
International
Diversified
Equities* $24,476 $6,194 25.3%
- -------------------------------------------------------------------------------------------------------------
</TABLE>

* For the period 10/28/94 (commencement of operations) through 11/30/94
** All brokerage commissions paid were directed to broker-dealers for
research services provided.

The policy of the Trust with respect to brokerage is reviewed by the
Board of Trustees from time to time. Because of the possibility of further
regulatory developments affecting the securities exchanges and brokerage
practices generally, the foregoing practices may be modified.

The Adviser and the Subadvisers and their respective affiliates may
manage, or have proprietary interests in, accounts with similar or dissimilar
or the same investment objectives as one or more Portfolios of the Trust. Such
account may or may not be in

B-50
<PAGE> 94
competition with a Portfolio for investments. Investment decisions for such
accounts are based on criteria relevant to such accounts; portfolio decisions
and results of the Portfolio's investments may differ from those of such other
accounts. There is no obligation to make available for use in managing the
Portfolio any information or strategies used or developed in managing such
accounts. In addition, when two or more accounts seek to purchase or sell the
same assets, the assets actually purchased or sold may be allocated among
accounts on a good faith equitable basis at the discretion of the account's
adviser. In some cases, this system may adversely affect the price or size of
the position obtainable for a Portfolio.

If determined by the Adviser or Subadviser to be beneficial to the
interests of the Trust, partners and/or employees of the Adviser or Subadvisers
may serve on investment advisory committees, which will consult with the
Adviser regarding investment objectives and strategies for the Trust. In
connection with serving on such a committee, such persons may receive
information regarding a Portfolio's proposed investment activities which is not
generally available to unaffiliated market participants, and there will be no
obligation on the part of such persons to make available for use in managing
the Portfolio any information or strategies known to them or developed in
connection with their other activities.

It is possible that a Portfolio's holdings may include securities of
entities for which a subadviser or its affiliate performs investment banking
services as well as securities of entities in which a subadviser or its
affiliate makes a market. From time to time, such activities may limit a
Portfolio's flexibility in purchases and sales of securities. When a
subadviser or its affiliate is engaged in an underwriting or other distribution
of securities of an entity, the subadviser may be prohibited from purchasing or
recommending the purchase of certain securities of that entity for the
Portfolio.

GENERAL INFORMATION

CUSTODIAN - State Street Bank and Trust Company ("State Street"), 225
Franklin Street, Boston, Massachusetts 02110, serves as the Trust's custodian.
In this capacity, State Street maintains the portfolio securities held by the
Trust, administers the purchase and sale of portfolio securities and performs
certain other duties. State Street also serves as transfer agent and dividend
disbursing agent for the Trust.

INDEPENDENT ACCOUNTANTS AND LEGAL COUNSEL - Price Waterhouse LLP,
1177 Avenue of the Americas, New York, New York 10036, is the Trust's
independent accountants. Price Waterhouse LLP performs an

B-51
<PAGE> 95

annual audit of the Trust's financial statements and provides tax consulting,
tax return preparation and accounting services relating to filings with the
SEC. The firm of Shereff, Friedman, Hoffman & Goodman, LLP, 919 Third Avenue,
New York, NY 10022, has been selected as legal counsel to the Corporation.

REPORTS TO SHAREHOLDERS - Persons having a beneficial interest in the
Trust are provided at least semi-annually with reports showing the investments
of the Portfolios, financial statements and other information.

SHAREHOLDER AND TRUSTEE RESPONSIBILITY - Shareholders of a
Massachusetts business trust may, under certain circumstances, be held
personally liable as partners for the obligations of the Trust. The risk of a
shareholder incurring any financial loss on account of shareholder liability is
limited to circumstances in which the Trust itself would be unable to meet its
obligations. The Declaration of Trust contains an express disclaimer of
shareholder liability for acts or obligations of the Trust and provides that
notice of the disclaimer must be given in each agreement, obligation or
instrument entered into or executed by the Trust or Trustees. The Declaration
of Trust provides for indemnification of any shareholder held personally liable
for the obligations of the Trust and also provides for the Trust to reimburse
the shareholder for all legal and other expenses reasonably incurred in
connection with any such claim or liability.

Under the Declaration of Trust, the trustees or officers are not
liable for actions or failure to act; however, they are not protected from
liability by reason of their willful misfeasance, bad faith, gross negligence
or reckless disregard of the duties involved in the conduct of their office.
The Trust provides indemnification to its trustees and officers as authorized
by its By-Laws and by the 1940 Act and the rules and regulations thereunder.

REGISTRATION STATEMENT - A registration statement has been filed with
the SEC under the Securities Act of 1933, as amended and the 1940 Act. The
Prospectus and this Statement of Additional Information do not contain all
information set forth in the registration statement, its amendments and
exhibits thereto, that the Trust has filed with the Securities and Exchange
Commission, Washington, D.C., to all of which reference is hereby made.

FINANCIAL STATEMENTS

Set forth following this Statement of Additional Information are the
audited financial statements of the Trust with respect to the fiscal year ended
November 30, 1996.

B-52
<PAGE> 96

<PAGE> 1

- ---------------------

SUNAMERICA SERIES TRUST
CASH MANAGEMENT PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 93.6% AMOUNT VALUE
----------------------------------------------------------------------------------------------------

<S> <C> <C>
CERTIFICATE OF DEPOSIT --3.3%
Commerzbank AG, New York Branch 5.40% due 1/08/97 (cost $3,000,131)... $ 3,000,000 $ 3,000,131
-------------
COMMERCIAL PAPER --31.7%
Banca CRT Financial Corp. 5.35% due 1/06/97........................... 4,000,000 3,978,600
Dean Witter, Discover & Co. 5.31% due 1/09/97......................... 4,000,000 3,976,990
Four Embarcadero 5.30% due 12/13/96................................... 3,000,000 2,994,700
Midamerican Energy Co. 5.28% due 12/17/96............................. 2,000,000 1,995,307
Premium Funding Series A 5.35% due 1/15/97............................ 2,137,000 2,122,709
The Walt Disney Co. 5.39% due 3/19/97................................. 5,000,000 4,917,500
United States Prime Property, Inc. 5.33% due 1/22/97.................. 5,000,000 4,961,506
Working Capital Management Co. L.P. 5.33% due 12/05/96................ 4,000,000 3,997,631
-------------
TOTAL COMMERCIAL PAPER (cost $28,946,593)............................. 28,944,943
-------------
CORPORATE SHORT-TERM NOTES -- 42.2%
Bear Stearns Co., Inc. 5.38% due 12/03/96(1).......................... 3,000,000 2,999,625
Bear Stearns Co., Inc. 5.43% due 12/02/96(1).......................... 2,500,000 2,498,714
Boatmens Credit Card Bank, New Mexico 5.36% due 12/09/96(1)........... 3,000,000 2,999,400
Boatmens First National Bank, Kansas 5.58% due 12/03/96(1)............ 2,000,000 1,999,980
Campbell Soup Co. 7.75% due 2/24/97................................... 1,000,000 1,003,750
Credit National 5.50% due 2/24/97(1).................................. 6,165,000 6,165,000
First Chicago Corp. 5.88% due 12/10/96(1)............................. 3,000,000 3,000,165
First Union Corp. 8.13% due 12/15/96.................................. 2,300,000 2,301,632
Ford Motor Credit Co. 5.20% 1/01/97................................... 1,000,000 999,705
General Motors Acceptance Corp. 5.00% due 1/27/97..................... 3,000,000 2,996,439
Iowa Illinois Gas & Electric Co. 5.88% due 7/15/97.................... 3,000,000 3,000,000
Key Bank of Wyoming 5.33% due 12/16/96(1)............................. 1,000,000 999,061
Manufacturer's Hanover Corp. 5.81% due 7/15/97(1)..................... 3,000,000 3,003,750
Nationsbank Corp. 7.50% due 2/15/97................................... 2,000,000 2,008,180
Philip Morris Cos., Inc. 8.75% due 12/01/96........................... 1,500,000 1,500,000
PNC Bank N.A., Pittsburgh 5.47% due 12/03/96(1)....................... 1,000,000 999,240
-------------
TOTAL CORPORATE SHORT-TERM NOTES (cost $38,479,408)................... 38,474,641
-------------
FEDERAL AGENCY OBLIGATION --4.5%
Federal Home Loan Bank 5.78% due 12/02/96(1) (cost $4,105,084)........ 4,100,000 4,105,084
-------------
MUNICIPAL BONDS -- 11.9%
Illinois Student Assistance Commission 5.45% 12/04/96(1).............. 4,000,000 4,000,000
Illinois Student Assistance Commission 5.45% 12/04/96(1).............. 3,000,000 3,000,000
New Hampshire State Industrial Development Authority, Revenue
5.48% due 1/22/97................................................... 2,000,000 2,000,000
Texas General Obligation 5.42% 12/04/96(1)............................ 1,875,000 1,875,000
-------------
TOTAL MUNICIPAL BONDS (cost $10,875,000).............................. 10,875,000
-------------
TOTAL SHORT-TERM SECURITIES (cost $85,406,216)........................ 85,399,799
-------------
</TABLE>

- ---------------------

6
<PAGE> 2
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 6.1% AMOUNT VALUE
----------------------------------------------------------------------------------------------------

<S> <C> <C>
REPURCHASE AGREEMENT -- 6.1%
Joint Repurchase Agreement Account (Note 3)
(cost $5,615,000)................................................... $ 5,615,000 $ 5,615,000
-------------
TOTAL INVESTMENTS --
(cost $91,021,216) 99.7% 91,014,799
Other assets less liabilities -- 0.3 231,997
------- -------------
NET ASSETS -- 100.0% $91,246,796
======= =============
</TABLE>

-----------------------------

(1) Variable rate security; maturity date reflects next reset
date; rate as of November 30, 1996

See Notes to Financial Statements

---------------------

7
<PAGE> 3

- ---------------------

SUNAMERICA SERIES TRUST
GLOBAL BOND PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(DENOMINATED IN
FOREIGN BONDS & NOTES -- 46.2% LOCAL CURRENCY) VALUE
--------------------------------------------------------------------------------------------------------

<S> <C> <C>
DANISH KRONER -- 2.1%
Kingdom of Denmark 9.00% 2000...................................... 7,500,000 $ 1,444,946
-----------
DEUTSCHE MARK -- 14.9%
Republic of Germany 6.50% 2005..................................... 9,000,000 6,176,127
Republic of Germany 6.75% 2004..................................... 4,200,000 2,937,624
Treuhandanstalt 6.50% 2003......................................... 1,500,000 1,041,057
-----------
10,154,808
-----------
IRISH PUNT -- 2.7%
Republic of Ireland 8.00% 2000..................................... 1,000,000 1,808,171
-----------
ITALIAN LIRA -- 6.0%
Republic of Italy 10.50% 2000...................................... 5,500,000,000 4,085,590
-----------
JAPANESE YEN -- 8.7%
International Bank for Reconstruction & Development 6.75% 2001..... 150,000,000 1,616,550
Japan Development Bank 6.50% 2001.................................. 400,000,000 4,299,824
-----------
5,916,374
-----------
NETHERLANDS GUILDER -- 2.5%
Netherlands Government 7.00% 2005.................................. 2,700,000 1,717,740
-----------
POUND STERLING -- 5.7%
United Kingdom Treasury 7.50% 2006................................. 500,000 839,568
United Kingdom Treasury 8.50% 2005................................. 1,700,000 3,076,925
-----------
3,916,493
-----------
SPANISH PESETA -- 2.3%
Government of Spain 10.30% 2002.................................... 170,000,000 1,539,108
-----------
SWEDISH KRONA -- 1.3%
Kingdom of Sweden 6.00% 2005....................................... 6,500,000 916,781
-----------
TOTAL FOREIGN BONDS & NOTES (cost $30,414,688)..................... 31,500,011
-----------
</TABLE>

- ---------------------

8
<PAGE> 4
<TABLE>
<CAPTION>
PRINCIPAL
U.S. GOVERNMENT -- 34.5% AMOUNT VALUE
--------------------------------------------------------------------------------------------------------

<S> <C> <C>
U.S. GOVERNMENT -- 34.5%
United States Treasury Notes 5.25% 2001............................ $ 3,000,000 $ 2,947,020
United States Treasury Notes 6.38% 2001............................ 3,500,000 3,574,375
United States Treasury Notes 6.50% 2005............................ 3,500,000 3,606,645
United States Treasury Notes 6.88% 1999............................ 3,000,000 3,087,180
United States Treasury Notes 7.00% 2006............................ 5,000,000 5,329,700
United States Treasury Notes 7.88% 2004............................ 4,500,000 5,023,125
-----------
TOTAL U.S. GOVERNMENT (cost $22,612,683)........................... 23,568,045
-----------
TOTAL INVESTMENT SECURITIES (cost $53,027,371)..................... 55,068,056
-----------
<CAPTION>
SHORT-TERM SECURITIES -- 19.1%
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 19.1%
Euroclear Time Deposit with State Street Bank & Trust Co.
5.81% due 12/02/96 (cost $13,051,000)............................ 13,051,000 13,051,000
-----------
TOTAL INVESTMENTS --
(cost $66,078,371) 99.8% 68,119,056
Other assets less liabilities -- 0.2 102,361
----- -----------
NET ASSETS -- 100.0% $68,221,417
===== ===========
</TABLE>
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
------------------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*BEF 53,390,063 USD 1,757,987 12/09/96 $ 72,020
CHF 4,117,000 ITL 5,258,634,150 01/29/97 235,429
CHF 758,342 USD 601,000 01/29/97 15,837
CHF 4,008,000 USD 3,197,090 01/29/97 104,378
*DEM 4,973,654 USD 3,285,000 02/27/97 33,631
DEM 10,907,691 USD 7,223,636 02/27/97 93,080
DEM 4,600,995 USD 3,017,095 02/27/97 9,341
DKK 8,433,000 USD 1,435,918 01/22/97 963
ESP 569,782,000 USD 4,408,320 01/16/97 16,560
JPY 248,498,000 USD 2,245,518 01/24/97 46,056
JPY 421,136,000 USD 3,792,395 01/24/97 64,909
NLG 2,967,685 USD 1,739,558 01/09/97 13,456
SEK 6,301,000 USD 956,073 01/28/97 15,991
*USD 91,858 IEP 57,000 01/08/97 3,957
*USD 2,829,830 ESP 367,960,000 01/16/97 6,328
*USD 165,492 ITL 252,656,252 01/29/97 678
*USD 1,241,339 ITL 1,921,978,000 01/29/97 22,725
---------
755,339
---------
</TABLE>

---------------------

9
<PAGE> 5
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS (continued)
------------------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE DEPRECIATION
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*GBP 1,427,847 USD 2,338,813 02/14/97 $ (57,635)
GBP 2,468,000 USD 4,067,264 02/14/97 (74,940)
IEP 1,125,000 USD 1,797,778 01/08/97 (93,318)
ITL 8,415,795,250 USD 5,484,568 01/29/97 (50,410)
*USD 1,702,544 BEF 53,390,063 12/09/96 (16,577)
*USD 2,521,182 GBP 1,501,580 02/14/97 (984)
*USD 3,318,881 DEM 5,014,000 02/27/97 (41,138)
*USD 3,380,323 DEM 5,014,000 02/27/97 (102,580)
---------
(437,582)
---------
Net Unrealized Appreciation.................... $ 317,757
=========
</TABLE>

-----------------------------

* Represents open forward foreign currency contracts and
offsetting open forward foreign currency contracts that do not
have additional market risk but have continued counterparty
settlement risk

<TABLE>
<S> <C> <C>
JPY -- Japanese Yen
BEF -- Belgian Franc ESP -- Spanish Peseta NLG -- Netherlands Guilder
CHF -- Swiss Franc GBP -- Pound Sterling SEK -- Swedish Krona
DEM -- Deutsche Mark IEP -- Irish Punt USD -- United States
DKK -- Danish Kroner ITL -- Italian Lira Dollar
</TABLE>

See Notes to Financial Statements

- ---------------------

10
<PAGE> 6

- ---------------------

SUNAMERICA SERIES TRUST
CORPORATE BOND PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 93.0% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 2.7%
Apparel & Textiles -- 0.6%
Collins & Aikman Corp. 11.50% 2006..................................... $ 100,000 $ 106,750
Westpoint Stevens, Inc. 9.38% 2005..................................... 100,000 102,750

Automotive -- 0.7%
Aftermarket Technology Corp. 12.00% 2004............................... 100,000 111,000
Exide Corp. 10.00% 2005................................................ 100,000 104,250
Lear Corp. 9.50% 2006.................................................. 50,000 53,750

Retail -- 1.4%
Penney (J.C.) Co., Inc. 7.65% 2016..................................... 500,000 519,075
-------------
997,575
-------------
CONSUMER STAPLES -- 4.0%
Food, Beverage & Tobacco -- 3.2%
Carr Gottstein Foods Co. 12.00% 2005................................... 100,000 106,000
Ralphs Grocery Co. 10.45% 2004......................................... 100,000 103,000
RJR Nabisco, Inc. 8.63% 2002........................................... 235,000 243,051
RJR Nabisco, Inc. 9.25% 2013........................................... 75,000 77,276
Smith's Food & Drug Centers, Inc. 11.25% 2007.......................... 100,000 109,000
Super Rite Foods, Inc. 10.63% 2002..................................... 500,000 532,500

Household Products -- 0.8%
Playtex Family Products Corp. 9.00% 2003............................... 100,000 98,000
Revlon Consumer Products Corp. 10.50% 2003............................. 100,000 104,500
Simmons Co. 10.75% 2006................................................ 100,000 104,000
-------------
1,477,327
-------------
ENERGY -- 2.9%
Energy Services -- 2.6%
Arkla, Inc. 9.20% 1997................................................. 65,000 66,904
Coastal Corp. 9.75% 2003............................................... 250,000 289,988
Tosco Corp. 7.00% 2000................................................. 250,000 255,050
Tosco Corp. 7.63% 2006................................................. 350,000 370,716

Energy Sources -- 0.3%
Mesa Operating Co. 10.63% 2006......................................... 100,000 108,000
-------------
1,090,658
-------------
FINANCE -- 28.2%
Banks -- 8.3%
ABN Amro Holdings NV 7.30% 2026........................................ 250,000 246,700
African Development Bank 6.88% 2015.................................... 500,000 497,545
Bank Montreal-Chicago 7.80% 2007....................................... 750,000 802,245
Continental Bank NA 12.50% 2001(1)..................................... 300,000 369,327
Security Pacific Corp. 11.50% 2000..................................... 275,000 324,822
Signet Banking Corp. 9.63% 1999........................................ 300,000 322,989
Union Bank Switzerland-New York 7.25% 2006............................. 500,000 522,965

Financial Services -- 16.0%
American General Corp. 9.63% 2018...................................... 500,000 534,355
Case Equipment Loan Trust 7.30% 2002................................... 155,029 157,639
Chevy Chase Auto Receivables 5.80% 2002................................ 121,279 121,051
</TABLE>

---------------------

11
<PAGE> 7

<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
CNA Financial Corp. 7.25% 2023......................................... $ 500,000 $ 488,710
Continental Corp. 8.25% 1999........................................... 100,000 104,727
First Nationwide Escrow Corp. 10.63% 2003*............................. 100,000 107,000
Ford Capital BV 9.38% 2001............................................. 600,000 670,164
Ford Capital BV 9.50% 2001............................................. 400,000 449,216
General Motors Acceptance Corp. 5.63% 2001............................. 300,000 292,632
Lehman Brothers Holdings, Inc. 6.13% 2001.............................. 575,000 568,180
Navistar Financial 6.55% 2001.......................................... 155,421 156,489
Pacific Mutual Life 7.90% 2023*........................................ 500,000 527,745
Premier Auto Trust 4.90% 1998.......................................... 47,118 46,882
Premier Auto Trust 7.90% 1999.......................................... 120,000 121,612
Resolution Funding Corp. zero coupon 2021.............................. 640,000 126,822
Salomon, Inc. 9.00% 1999............................................... 525,000 555,030
Standard Credit Card Master Trust 6.25% 1998........................... 260,000 260,650
Swedish Export Credit Corp. 9.88% 2038................................. 500,000 545,295
Trizec Finance Corp., Ltd. 10.88% 2005................................. 100,000 110,250

Insurance -- 3.9%
Conseco, Inc. 10.50% 2004.............................................. 600,000 721,338
GE Global Insurance Holdings Corp. 7.00% 2026.......................... 750,000 746,640
-------------
10,499,020
-------------
HEALTHCARE -- 0.7%
Health Services -- 0.4%
Genesis Health 9.75% 2005.............................................. 50,000 52,375
Tenet Healthcare Corp. 10.13% 2005..................................... 100,000 110,500

Medical Products -- 0.3%
Dade International, Inc. 11.13% 2006*.................................. 100,000 108,000
-------------
270,875
-------------
INDUSTRIAL & COMMERCIAL -- 10.5%
Business Services -- 4.1%
Allied Waste North America, Inc. 10.25% 2006*.......................... 50,000 51,250
Joy Technologies, Inc. 10.25% 2003..................................... 600,000 657,000
Knoll, Inc. 10.88% 2006................................................ 100,000 109,000
Prime Succession Acquisition 10.75% 2004*(2)........................... 50,000 53,750
Statia Terminals International 11.75% 2003*............................ 50,000 50,500
United Stationers Supply Co. 12.75% 2005............................... 50,000 55,188
Waste Management, Inc. 8.75% 2018...................................... 500,000 563,460

Machinery -- 0.3%
Alvey Systems, Inc. 11.38% 2003........................................ 100,000 104,000

Multi-Industry -- 3.5%
EnviroSource, Inc. 9.75% 2003.......................................... 50,000 47,000
Four M Corp. 12.00% 2006............................................... 50,000 52,375
News America Holdings, Inc. 10.13% 2012................................ 500,000 592,190
Tenneco, Inc. 10.00% 1998.............................................. 555,000 590,115

Transportation -- 2.6%
Ameritruck Distribution Corp. 12.25% 2005.............................. 50,000 48,750
Gearbulk Holdings Ltd. 11.25% 2004..................................... 100,000 109,000
Stena Lines AB 10.50% 2005............................................. 100,000 107,000
Transport Ocean Container Corp. 12.25% 2004............................ 600,000 716,250
-------------
3,906,828
-------------
INFORMATION & ENTERTAINMENT -- 9.1%
Broadcasting & Media -- 5.7%
Bell Cablemedia PLC zero coupon 2004(3)................................ 150,000 128,250
</TABLE>

- ---------------------

12
<PAGE> 8

<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT (continued)
Broadcasting & Media (continued)
Chancellor Broadcasting Co. 9.38% 2004................................. $ 100,000 $ 99,750
Comcast UK Cable Partners Ltd. zero coupon 2007(3)..................... 175,000 119,437
Heritage Media Corp. 8.75% 2006........................................ 100,000 97,000
Nextel Communications, Inc. zero coupon 2003(3)........................ 100,000 75,250
Paramount Communications, Inc. 8.25% 2022.............................. 500,000 478,385
Peoples Choice TV Corp. zero coupon 2004(1)(3)......................... 50,000 21,500
SFX Broadcasting, Inc. 10.75% 2006..................................... 100,000 105,000
Sinclair Broadcast Group, Inc. 10.00% 2005............................. 100,000 101,000
Sullivan Broadcasting 10.25% 2005...................................... 100,000 100,500
Time Warner, Inc. 7.45% 1998........................................... 290,000 294,443
Valassis Inserts, Inc. 9.38% 1999...................................... 500,000 513,865

Cable -- 2.5%
Cablevision Systems Corp. 9.25% 2005................................... 100,000 97,750
Continental Cablevision, Inc. 9.50% 2013............................... 500,000 580,730
Echostar Satellite Broadcasting Corp. zero coupon 2004(3).............. 100,000 76,000
Rogers Cablesystems Ltd. 10.00% 2007................................... 100,000 104,750
UIH Australia Pacific, Inc. zero coupon 2006(3)........................ 100,000 52,500

Entertainment Products -- 0.1%
Cobblestone Golf Group, Inc. 11.50% 2003............................... 50,000 51,500

Leisure & Tourism -- 0.8%
AMF Group, Inc. zero coupon 2006(3).................................... 200,000 127,500
Courtyard Marriott Ltd. 10.75% 2008(2)................................. 50,000 52,750
Six Flags Theme Parks, Inc. zero coupon 2005(3)........................ 125,000 115,000
-------------
3,392,860
-------------
INFORMATION TECHNOLOGY -- 6.8%
Communication Equipment -- 2.3%
Australis Holdings Ltd. zero coupon 2002*(3)........................... 50,000 28,375
Cablevision Industries Corp. 10.75% 2002............................... 670,000 733,590
Lenfest Communications, Inc. 10.50% 2006............................... 100,000 104,000

Computers & Business Equipment -- 1.5%
Harris Corp. 10.38% 2018............................................... 500,000 557,855

Electronics -- 0.2%
Advanced Micro Devices, Inc. 11.00% 2003............................... 50,000 54,125

Paging -- 0.3%
Paging Network, Inc. 10.13% 2007....................................... 100,000 100,250

Telecommunications -- 2.5%
360 Communications Co. 7.13% 2003...................................... 160,000 160,758
Anixter, Inc. 8.00% 2003............................................... 500,000 519,925
Brooks Fiber Properties, Inc. zero coupon 2006(3)...................... 100,000 65,500
Teleport Communications Group zero coupon 2007(3)...................... 100,000 67,750
Vanguard Cellular Systems, Inc. 9.38% 2006............................. 100,000 100,375
-------------
2,492,503
-------------
MATERIALS -- 3.2%
Chemicals -- 1.4%
Arcadian Partners L.P. 10.75% 2005..................................... 100,000 111,375
Crain Industry, Inc. 13.50% 2005(2).................................... 50,000 55,625
Harris Chemical North America, Inc. 10.25% 2001........................ 100,000 103,250
HS Resources, Inc. 9.25% 2006*......................................... 50,000 50,781
Royal Oak Mines 11.00% 2006............................................ 50,000 51,500
Sterling Chemicals, Inc. 11.75% 2006................................... 50,000 51,000
Viridian, Inc. 9.75% 2003.............................................. 100,000 109,000
</TABLE>

---------------------

13
<PAGE> 9

Metals & Minerals -- 0.7%
GS Technologies, Inc. 12.25% 2005...................................... 100,000 107,000
Republic Engineered Steels, Inc. 9.88% 2001............................ 50,000 46,000
Ryderson Tull, Inc. 9.13% 2006......................................... 100,000 104,500
-------------
1,193,031
-------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 3.1%
Foreign Government -- 3.1%
Province of Quebec 13.25% 2014......................................... 290,000 352,159
Republic Of Columbia 7.25% 2003........................................ 250,000 247,200
Republic of South Africa 9.63% 1999.................................... 500,000 534,375
-------------
1,133,734
-------------
REAL ESTATE -- 2.0%
Real Estate Investment Trusts -- 2.0%
Chelsea GCA Realty, Inc. 7.75% 2001.................................... 150,000 152,407
Price REIT, Inc. 7.50% 2006............................................ 500,000 513,355
Tanger Properties Ltd. 8.75% 2001...................................... 85,000 86,091
-------------
751,853
-------------
U.S. GOVERNMENT & AGENCIES -- 18.0%
U.S. Government & Agencies -- 18.0%
Federal Home Loan Mortgage Corp. 7.50% 2026............................ 1,000,580 1,013,708
Federal Home Loan Mortgage Corp. 8.20% 1998............................ 110,000 110,378
Federal National Mortgage Association 6.50% 2011....................... 1,480,314 1,467,820
Federal National Mortgage Association 8.50% 2005....................... 750,000 799,920
Government National Mortgage Association 8.00% 2026.................... 1,498,914 1,544,811
United States Treasury Bonds 8.50% 2020................................ 120,000 148,687
United States Treasury Bonds 8.75% 2017................................ 90,000 113,203
United States Treasury Bonds Strip zero coupon 2020.................... 430,000 89,857
United States Treasury Bonds Strip zero coupon 2020.................... 6,640,000 1,413,922
-------------
6,702,306
-------------
UTILITIES -- 1.8%
Electric Utilities -- 1.6%
California Energy, Inc. 10.25% 2004.................................... 100,000 103,500
Tenaga Nasional 7.50% 2025*............................................ 500,000 506,425

Telephone -- 0.2%
Millicom International Cellular zero coupon 2006(3).................... 100,000 59,500
-------------
669,425
-------------
TOTAL BONDS & NOTES (cost $33,442,054)................................. 34,577,995
-------------
</TABLE>

- ---------------------

14
<PAGE> 10
<TABLE>
<CAPTION>
PREFERRED STOCK -- 0.6% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 0.2%
Broadcasting & Media -- 0.2%
K-III Communications Corp. 11.63%...................................... 1,059 $ 104,837
-------------
INFORMATION TECHNOLOGY -- 0.4%
Telecommunications -- 0.4%
PanAmSat, L.P. 12.75%.................................................. 106 130,701
-------------
TOTAL PREFERRED STOCK (cost $214,250).................................. 235,538
-------------
TOTAL INVESTMENT SECURITIES (cost $33,656,304)......................... 34,813,533
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 5.4% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 4.3%
British Aerospace PLC 7.55% due 5/15/97*............................... $ 100,000 100,598
Capital One Bank 8.33% due 2/10/97..................................... 575,000 577,380
Comdisco, Inc. 7.33% due 3/6/97........................................ 200,000 200,860
Comdisco, Inc. 9.75% due 1/15/97....................................... 275,000 276,172
First USA Bank 8.10% due 2/21/97....................................... 250,000 251,175
Tele-Communications, Inc. 7.00% due 8/4/97............................. 200,000 201,232
TIME DEPOSIT -- 1.1%
Cayman Island Time Deposit with State Street Bank & Trust Co.
2.75% due 12/02/96................................................... 417,000 417,000
-------------
TOTAL SHORT-TERM SECURITIES (cost $2,022,527).......................... 2,024,417
-------------
TOTAL INVESTMENTS --
(cost $35,678,831) 99.0% 36,837,950
Other assets less liabilities -- 1.0 369,457
----- -------------
NET ASSETS -- 100.0% $37,207,407
===== =============
</TABLE>

-----------------------------

* Resale restricted to qualified institutional buyers

(1) Consists of more than one class of securities traded together
as a unit; generally bonds with attached stocks or warrants

(2) Fair valued security; see Note 2

(3) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date

See Notes to Financial Statements

---------------------

15
<PAGE> 11

- ---------------------

SUNAMERICA SERIES TRUST
HIGH-YIELD BOND PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 96.3% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 5.8%
Automotive -- 0.8%
Am General Corp. 12.88% 2002.......................................... $1,000,000 $ 945,000

Retail -- 5.0%
E&S Holdings Corp. 10.38% 2006*....................................... 1,000,000 1,036,250
Finlay Fine Jewelry Corp. 10.63% 2003................................. 1,000,000 1,035,000
Specialty Retailers, Inc. 10.00% 2000................................. 2,000,000 2,050,000
Thrifty PayLess Holdings, Inc. 12.25% 2004............................ 1,300,000 1,521,000
------------
6,587,250
------------
CONSUMER STAPLES -- 3.7%
Food Retail -- 1.8%
Kash 'N Karry Food Stores, Inc. 11.50% 2003........................... 2,000,000 2,000,000

Food, Beverage & Tobacco -- 1.9%
Smith's Food & Drug Centers, Inc. 11.25% 2007......................... 2,000,000 2,180,000
------------
4,180,000
------------
ENERGY -- 3.2%
Energy Services -- 2.3%
DeepTech International, Inc. 12.00% 2000.............................. 500,000 527,500
Mesa Operating Co. zero coupon 2006(1)................................ 3,000,000 2,025,000

Energy Sources -- 0.9%
Flores & Rucks, Inc. 9.75% 2006....................................... 1,000,000 1,052,500
------------
3,605,000
------------
FINANCE -- 3.8%
Financial Services -- 3.8%
Dollar Financial Group, Inc. 10.88% 2006*............................. 2,000,000 2,027,500
Homeside, Inc. 11.25% 2003*........................................... 2,000,000 2,230,000
------------
4,257,500
------------
HEALTHCARE -- 9.9%
Health Services -- 8.5%
Abbey Healthcare Group, Inc. 9.50% 2002............................... 2,000,000 2,090,000
OrNda Healthcorp. 12.25% 2002......................................... 1,000,000 1,071,250
Quorum Health Group, Inc. 8.75% 2005.................................. 2,000,000 2,055,000
Tenet Healthcare Corp. 8.63% 2003..................................... 2,000,000 2,130,000
Tenet Healthcare Corp. 10.13% 2005.................................... 2,000,000 2,210,000

Medical Products -- 1.4%
Dade International, Inc. 11.13% 2006*................................. 1,500,000 1,620,000
------------
11,176,250
------------
INDUSTRIAL & COMMERCIAL -- 17.4%
Business Services -- 15.5%
Allied Waste North America, Inc. 10.25% 2006*......................... 2,000,000 2,042,500
Core Mark International, Inc. 11.38% 2003*............................ 1,000,000 1,016,250
Imed Corp. 9.75% 2006*................................................ 2,000,000 2,025,000
Iron Mountain, Inc. 10.13% 2006....................................... 1,000,000 1,055,000
Katz Corp. 12.75% 2002................................................ 1,000,000 1,116,250
Lifestyle Furnishings International Ltd. 10.88% 2006*................. 2,000,000 2,120,000
</TABLE>

- ---------------------

16
<PAGE> 12

Multi-Industry -- 1.9%
International Semi-Tech Microelectronic, Inc. zero coupon 2003(1)..... 2,000,000 1,240,000
J.B. Poindexter & Co. 12.50% 2004..................................... 1,000,000 967,500
------------
19,753,750
------------
INFORMATION & ENTERTAINMENT -- 27.4%
Broadcasting & Media -- 11.1%
Jcac, Inc. 10.13% 2006................................................ 1,000,000 1,025,000
Kabelmedia Holding zero coupon 2006................................... 2,000,000 1,090,000
NWCG Holding Corp. zero coupon 1999................................... 3,000,000 2,490,000
Park Broadcasting, Inc. 11.75% 2004*.................................. 1,500,000 1,751,250
SFX Broadcasting, Inc. 10.75% 2006.................................... 2,000,000 2,100,000
Sinclair Broadcast Group, Inc. 10.00% 2005............................ 2,000,000 2,020,000
Universal Outdoor Holdings, Inc. 9.75% 2006........................... 2,000,000 2,040,000

Cable -- 11.9%
Bell Cablemedia PLC zero coupon 2005(1)............................... 1,750,000 1,373,750
Century Communications Corp. 11.88% 2003.............................. 2,000,000 2,135,000
Comcast UK Cable Partners Ltd. zero coupon 2007....................... 1,000,000 682,500
Diamond Cable Communications PLC zero coupon 2005(1).................. 1,000,000 697,500
Echostar Communications Corp. zero coupon 2004(1)..................... 1,000,000 810,000
Echostar Satellite Broadcasting Corp. zero coupon 2004(1)............. 1,250,000 950,000
International CableTel, Inc. zero coupon 2005(1)...................... 1,000,000 712,500
International CableTel, Inc. zero coupon 2006(1)...................... 1,000,000 640,000
Mettler Toledo, Inc. 9.75% 2006....................................... 1,000,000 1,045,000
Telewest PLC zero coupon 2007(1)...................................... 1,875,000 1,270,313
UIH Australia Pacific, Inc. zero coupon 2006(1)....................... 1,500,000 787,500
United International Holdings, Inc. zero coupon 1999(2)............... 2,250,000 1,586,250
Videotron Holdings PLC zero coupon 2005(1)............................ 1,000,000 787,500

Gaming -- 2.6%
Casino America, Inc. 12.50% 2003...................................... 1,000,000 970,000
Showboat, Inc. 13.00% 2009............................................ 1,000,000 1,095,000
Trump Atlantic City Associates 11.25% 2006............................ 1,000,000 945,000

Leisure & Tourism -- 1.8%
HMH Properties, Inc. 9.50% 2005....................................... 2,000,000 2,065,000
------------
31,069,063
------------
INFORMATION TECHNOLOGY -- 18.3%
Cellular -- 6.7%
Cellular Communications International, Inc. zero coupon 2000.......... 1,000,000 660,000
Cellular Communications International, Inc. zero coupon 2000(2)....... 2,000,000 1,375,000
Comcast Cellular Corp. zero coupon 2000............................... 1,500,000 1,080,000
Intercel, Inc. zero coupon 2006(1).................................... 1,000,000 607,500
Pricecellular Wireless Corp. zero coupon 2003(1)...................... 1,000,000 842,500
Pricecellular Wireless Corp. zero coupon 2001(1)...................... 1,000,000 985,000
Western Wireless Corp. 10.50% 2006.................................... 2,000,000 2,060,000

Computers & Business Equipment -- 1.9%
Twin Laboratories, Inc. 10.25% 2006................................... 1,000,000 1,041,875
Unisys Corp. 11.75% 2004.............................................. 1,000,000 1,045,000
</TABLE>

---------------------

17
<PAGE> 13
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Electronics -- 1.9%
Advanced Micro Devices, Inc. 11.00% 2003.............................. $2,000,000 $ 2,165,000

Paging -- 2.7%
Paging Network, Inc. 10.00% 2008*..................................... 2,000,000 1,997,500
Paging Network, Inc. 11.75% 2002...................................... 1,000,000 1,080,000

Telecommunications -- 5.1%
Hyperion Telecommunications, Inc. zero coupon 2003(1)*................ 2,500,000 1,393,750
MFS Communications, Inc. zero coupon 2006(1).......................... 1,000,000 725,000
PanAmSat, L.P. zero coupon 2003(1).................................... 2,500,000 2,300,000
Teleport Communications Group zero coupon 2007(1)..................... 2,000,000 1,355,000
------------
20,713,125
------------
MATERIALS -- 5.7%
Chemicals -- 0.9%
LaRoche Industries, Inc. 13.00% 2004.................................. 1,000,000 1,065,000

Forest Products -- 1.6%
American Pad & Paper Co. 13.00% 2005.................................. 650,000 757,250
Stone Container Corp. 11.88% 1998..................................... 1,000,000 1,065,000

Metals & Minerals -- 3.2%
Renco Metals, Inc. 11.50% 2003........................................ 2,000,000 2,100,000
WCI Steel, Inc. 10.00% 2004*.......................................... 1,500,000 1,511,250
------------
6,498,500
------------
UTILITIES -- 1.1%
Telephone -- 1.1%
Millicom International Cellular SA zero coupon 2006(1)................ 2,000,000 1,190,000
------------
TOTAL BONDS & NOTES (cost $104,171,085)............................... 109,030,438
------------

<CAPTION>
COMMON STOCK -- 0.0% SHARES
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER STAPLES -- 0.0%
Food, Beverage & Tobacco -- 0.0%
Smith's Food & Drug Centers, Inc. .................................... 1,505 45,526
------------
INFORMATION & ENTERTAINMENT -- 0.0%
Gaming -- 0.0%
Capital Gaming International, Inc.+ .................................. 40,000 1,875
------------
TOTAL COMMON STOCK (cost $156,260).................................... 47,401
------------
<CAPTION>
PREFERRED STOCK -- 1.0%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS -- 1.0%
Forest Products -- 1.0%
SDW Holdings Corp. 14.00% (cost $950,530)*(3)......................... 37,000 1,091,500
------------
<CAPTION>
WARRANTS -- 0.1%+
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER STAPLES -- 0.0%
Household Products -- 0.0%
Chattem, Inc. 6/17/99................................................. 1,000 3,375
------------
</TABLE>

- ---------------------

18
<PAGE> 14
<TABLE>
WARRANTS (continued) SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 0.0%
Cable -- 0.0%
United International Holdings, Inc. 11/15/99.......................... 1,750 $ 4,375

Gaming -- 0.0%
Fitzgerald Gaming Corp.*(3) 3/15/99................................... 2,000 20,000
------------
24,375
------------
INFORMATION TECHNOLOGY -- 0.1%
Telecommunications -- 0.1%
Hyperion Telecommunications, Inc.* 4/15/01............................ 2,500 68,750
------------
MATERIALS -- 0.0%
Forest Products -- 0.0%
SDW Holdings Corp.*(3) 12/15/06....................................... 3,700 48,100
------------
TOTAL WARRANTS (cost $142,784)........................................ 144,600
------------
TOTAL INVESTMENT SECURITIES (cost $105,420,658)....................... 110,313,939
------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 3.2% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 3.2%
Joint Repurchase Agreement Account (Note 3)
(cost $3,610,000)................................................... $3,610,000 3,610,000
------------
TOTAL INVESTMENTS --
(cost $109,030,658) 100.6% 113,923,939
Liabilities in excess of other assets -- (0.6) (694,846)
------ ------------
NET ASSETS -- 100.0% $113,229,093
============
------
------
</TABLE>

-----------------------------

+ Non-income producing securities

* Resale restricted to qualified institutional buyers

(1) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date

(2) Consists of more than one class of securities traded together
as a unit; generally bonds with attached stocks or warrants

(3) Fair valued security; see Note 2

See Notes to Financial Statements

---------------------

19
<PAGE> 15

- ---------------------

SUNAMERICA SERIES TRUST
WORLDWIDE HIGH INCOME
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 85.0% AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 3.3%
Housing -- 2.7%
Companhia Brasileira de Petroleo Ipiranga 12.50% 1997............ $ 800,000 $ 816,000
Companhia Brasileira de Petroleo Ipiranga 12.50% 1997*........... 500,000 510,000

Retail -- 0.6%
Cole National Group, Inc. 9.88% 2006*............................ 170,000 172,550
K-Mart Corp. 8.38% 2022.......................................... 135,000 109,350
------------
1,607,900
------------
CONSUMER STAPLES 0.9%
Food, Beverage & Tobacco -- 0.1%
International Home Foods, Inc. 10.38% 2006*...................... 50,000 51,375

Household Products -- 0.8%
Revlon Worldwide Corp. zero coupon 1998.......................... 445,000 384,369
------------
435,744
------------
ENERGY -- 0.8%
Energy Services -- 0.2%
Parker Drilling Corp. 9.75% 2006*................................ 80,000 82,900

Energy Sources -- 0.6%
Flores & Rucks, Inc. 9.75% 2006.................................. 115,000 121,038
Nuevo Energy Co. 9.50% 2006...................................... 175,000 182,000
------------
385,938
------------
FINANCE -- 7.6%
Financial Services -- 7.5%
Alps Series 96-1 12.75% 2006*.................................... 150,000 155,437
Dillon Read Structured Finance Corp. 6.66% 2010.................. 95,164 77,294
Dillon Read Structured Finance Corp. 7.60% 2007.................. 291,263 262,218
First Nationwide Escrow Corp. 10.63% 2003*....................... 65,000 69,550
First Nationwide Holdings, Inc. 9.13% 2003*...................... 90,000 90,900
Homeside, Inc. 11.25% 2003*...................................... 40,000 44,600
Russia Federation Ministry Finance GDR 3.00% 2003*............... 4,800,000 2,916,000
Stone Container Finance Co. 11.50% 2006*......................... 80,000 81,600

Insurance -- 0.1%
Home Holdings, Inc. 8.63% 2003(1)................................ 95,000 26,600
------------
3,724,199
------------
INDUSTRIAL & COMMERCIAL -- 5.9%
Aerospace & Military Technology -- 0.3%
Jet Equipment Trust 11.79% 2013*................................. 100,000 123,060

Business Services -- 2.9%
ISP Holdings, Inc. 9.00% 2003*................................... 165,000 168,506
Norcal Waste Systems, Inc. 12.75% 2005........................... 215,000 236,500
Tevecap SA 12.63% 2004........................................... 1,000,000 1,026,250

Electrical Equipment -- 0.2%
Digital Equipment Corp. 8.63% 2012............................... 85,000 84,945
</TABLE>

- ---------------------

20
<PAGE> 16

<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Multi-Industry -- 2.0%
Iochpe Maxion SA 12.38% 2002..................................... $ 500,000 $ 487,500
Iochpe Maxion SA 12.38% 2002*.................................... 500,000 487,500

Transportation -- 0.5%
Southland Corp. 5.00% 2003....................................... 295,000 242,638
------------
2,856,899
------------
INFORMATION & ENTERTAINMENT -- 7.3%
Broadcasting & Media -- 2.6%
Comcast Corp. 9.38% 2005......................................... 255,000 263,925
Grupo Televisa SA de CV zero coupon 2008(2)...................... 950,000 621,062
Marvel Parent Holdings, Inc. zero coupon 1998.................... 150,000 22,500
Viacom, Inc. 8.00% 2006.......................................... 385,000 373,423

Cable -- 2.8%
Cablevision Systems Corp. 9.25% 2005............................. 150,000 146,625
Cablevision Systems Corp. 9.88% 2006............................. 205,000 206,025
Echostar Satellite Broadcasting Corp. zero coupon 2004*(2)....... 355,000 269,800
Marcus Cable Co. L.P. zero coupon 2005(2)........................ 285,000 195,225
Rogers Cablesystems Ltd. 10.00% 2005(2).......................... 295,000 314,913
Telewest PLC zero coupon 2007(2)................................. 385,000 260,838

Gaming -- 0.5%
Grand Casino, Inc. 10.13% 2003................................... 180,000 181,350
Station Casinos, Inc. 9.63% 2003................................. 70,000 68,250

Leisure & Tourism -- 1.4%
Boyd Gaming Corp. 9.25% 2003..................................... 140,000 136,675
Courtyard Marriott Ltd. 10.75% 2008.............................. 175,000 184,844
Host Marriott Corp. Acquisition Properties, Inc. 9.00% 2007...... 180,000 180,000
Host Marriott Travel Plazas 9.50% 2005........................... 180,000 185,400
------------
3,610,855
------------
INFORMATION TECHNOLOGY -- 7.3%
Cellular -- 0.8%
Comcast Cellular Corp. zero coupon 2000.......................... 390,000 281,775
Rogers Communications, Inc. 9.13% 2006........................... 90,000 89,100

Electronics -- 0.4%
Advanced Micro Devices, Inc. 11.00% 2003......................... 200,000 217,000

Paging -- 0.4%
Paging Network, Inc. 10.00% 2008*................................ 100,000 100,000
Paging Network, Inc. 10.13% 2007................................. 80,000 80,200

Telecommunications -- 5.7%
Brooks Fiber Properties, Inc. zero coupon 2006(2)................ 325,000 212,875
Brooks Fiber Properties, Inc. zero coupon 2006*(2)............... 110,000 69,437
Comtel Brasileira Ltd. 10.75% 2004*.............................. 1,050,000 1,085,700
Dial Callable Communications, Inc. zero coupon 2004(2)........... 600,000 417,000
IXC Communications, Inc. 12.50% 2005............................. 170,000 183,600
Lenfest Communications, Inc. 8.38% 2005.......................... 310,000 299,925
MFS Communications, Inc. zero coupon 2006(2)..................... 505,000 366,125
TCI Communications, Inc. 7.88% 2026.............................. 205,000 182,803
------------
3,585,540
------------
MATERIALS -- 6.4%
Forest Products -- 2.7%
Gaylord Container Corp. 11.50% 2001.............................. 250,000 266,250
Gaylord Container Corp. 12.75% 2005.............................. 40,000 43,800
Grupo International Durango SA de CV 12.63% 2003................. 500,000 541,250
</TABLE>

---------------------

21
<PAGE> 17
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Forest Products (continued)
Owens Illinois, Inc. 11.00% 2003................................. $ 190,000 $ 210,188
S.D. Warren Co. 12.00% 2004...................................... 135,000 141,750
TLC Beatrice International Holdings, Inc. 11.50% 2005............ 130,000 136,662

Metals & Minerals -- 3.7%
Tolmex SA de CV 8.38% 2003....................................... 2,000,000 1,810,000
United States Can Corp. 10.13% 2006.............................. 25,000 26,125
---------------
3,176,025
---------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 38.0%
Foreign Government -- 38.0%
Federative Republic of Brazil 4.76% 2014(3)(4)................... 2,478,082 1,809,000
Jamaica Government Bonds 12.00% 1999............................. 2,000,000 2,000,000
Republic of Argentina 8.38% 2003................................. 1,500,000 1,400,625
Republic of Argentina 11.00% 2006................................ 1,000,000 1,043,750
Republic of Bulgaria 2.25% 2012(3)............................... 2,500,000 917,175
Republic of Bulgaria. 6.69% 2024(3).............................. 1,000,000 544,370
Republic of Ecuador 6.50% 2015(3)(4)............................. 2,273,389 1,369,716
Republic of Panama 3.50% 2014(3)................................. 1,250,000 854,688
Republic of Philippines 6.44% 2009(3)............................ 1,600,000 1,552,000
Republic of Venezuela (Oil Warrants Attached) 6.44% 2020(3)...... 500,000 403,125
Republic of Venezuela 6.63% 2007(3).............................. 4,250,000 3,708,125
United Mexican States 11.38% 2016................................ 3,000,000 3,108,750
---------------
18,711,324
---------------
UTILITIES -- 7.5%
Electric Utilities -- 3.6%
Cleveland Electric Illuminating Co. 8.38% 2011................... 25,000 24,136
Cleveland Electric Illuminating Co. 9.50% 2005................... 250,000 270,363
Hidroelectrica Piedra Aguila 10.63% 2001*........................ 1,300,000 1,345,500
Midland Cogeneration 10.33% 2002................................. 104,735 111,281
Midland Cogeneration, Series C-91 10.33% 2002.................... 18,012 19,138
Midland Funding Corp. 11.75% 2005................................ 40,000 44,453

Gas & Pipeline Utilities -- 3.3%
Bridas Corp. 12.50% 1999......................................... 1,500,000 1,599,375

Telephone -- 0.6%
Occidente Y Caribe Celular SA zero coupon 2004*(2)(5)............ 400,000 203,000
Philippine Long Distance Telephone 9.25% 2006.................... 100,000 108,937
---------------
3,726,183
---------------
TOTAL BONDS & NOTES (cost $38,907,783)........................... 41,820,607
---------------

<CAPTION>
PREFERRED STOCK -- 1.4% SHARES
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 0.2%
Medical Products -- 0.2%
Fresenius Medical Care........................................... 90 91,602
---------------

INFORMATION & ENTERTAINMENT -- 1.2%
Broadcasting & Media -- 1.2%
TCI Pacific Communications, Inc. 5.00%........................... 1,830 160,811
Time Warner, Inc. Series M 10.25%................................ 423 461,070
---------------
621,881
---------------
TOTAL PREFERRED STOCK (cost $675,514)............................ 713,483
---------------
</TABLE>

- ---------------------

22
<PAGE> 18
<TABLE>
<CAPTION>
PRINCIPAL
LOAN PARTICIPATION AGREEMENT -- 1.0% AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
LOAN PARTICIPATION AGREEMENT -- 1.0%
Russia BFEA Loan Agreement+ (cost $485,250)...................... $ 600,000 $ 470,250
---------------
TOTAL INVESTMENT SECURITIES (cost $40,068,547)................... 43,004,340
---------------
<CAPTION>
SHORT-TERM SECURITIES--3.4%
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 3.4%
Banamex Pagare 14.52% due 10/23/97............................... MXN 6,446,250 648,875
Empresas La Moderna 10.25% due 11/12/97.......................... 1,000,000 1,023,750
---------------
TOTAL SHORT-TERM SECURITIES (cost $1,707,090).................... 1,672,625
---------------
<CAPTION>
REPURCHASE AGREEMENT -- 8.5%
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 8.5%
Agreement with State Street Bank & Trust Co., bearing interest of
4.00% dated 11/29/96 to be repurchased 12/02/96 in the amount
of $4,208,402 and collateralized by $4,225,000 U.S. Treasury
Notes 6.00% due 9/30/98 (cost $4,207,000)...................... $ 4,207,000 4,207,000
---------------
TOTAL INVESTMENTS --
(cost $45,982,637) 99.3% 48,883,965
Other assets less liabilities -- 0.7 320,532
------ ---------------
NET ASSETS -- 100.0% $ 49,204,497
====== =============
</TABLE>

-----------------------------

+ Non-income producing security; security in default

* Resale restricted to qualified institutional buyers

(1) Fair valued security; see Note 2

(2) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date

(3) Variable rate security; rate as of November 30, 1996

(4) A portion of the coupon interest is received in cash and a
portion is capitalized in the principal of the security

(5) Consists of more than one class of securities traded together
as a unit; generally bonds with attached stocks or warrants

GDR -- Global Depository Receipt

MXN Mexican Peso

Allocation of investments as a percentage of net assets by country
as of November 30, 1996:

<TABLE>
<S> <C>
United States 27.8%
Mexico 15.8
Brazil 12.6
Argentina 11.0
Venezuela 8.4
Russia 6.8
Jamaica 4.1
Philippines 3.4
Bulgaria 3.0
Ecuador 2.8
Panama 1.7
Canada 1.0
United Kingdom 0.5
Colombia 0.4
----
99.3%
====
</TABLE>

See Notes to Financial Statements

---------------------

23
<PAGE> 19

- ---------------------

SUNAMERICA SERIES TRUST
SUNAMERICA BALANCED
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 71.1% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 5.2%
Apparel & Textiles -- 1.1%
NIKE, Inc. Class B .................................................... 2,000 $ 113,750

Automotive -- 2.0%
General Motors Corp. .................................................. 2,000 115,250
Harley-Davidson, Inc. ................................................. 2,000 88,750

Retail -- 2.1%
Federated Department Stores, Inc.+..................................... 1,600 54,600
Payless Shoesource, Inc.+.............................................. 2,000 78,250
Saks Holdings, Inc. ................................................... 300 9,750
Wal-Mart Stores, Inc. ................................................. 3,000 76,500
-------------
536,850
-------------
CONSUMER STAPLES -- 4.9%
Food, Beverage & Tobacco -- 2.9%
Consolidated Cigar Holdings, Inc.+..................................... 7,000 170,625
Seagram Co., Ltd. ..................................................... 3,000 122,625

Household Products -- 2.0%
Nu Skin Asia Pacific, Inc.+............................................ 500 14,812
Samsonite Corp. ....................................................... 5,000 189,375
-------------
497,437
-------------
ENERGY -- 3.9%
Energy Services -- 2.1%
Benton Oil & Gas Co.+.................................................. 2,000 51,000
Burlington Resources, Inc. ............................................ 1,100 58,300
Mobil Corp. ........................................................... 450 54,450
Royal Dutch Petroleum Co. ADR.......................................... 300 50,963

Energy Sources -- 1.8%
Enron Corp. ........................................................... 2,000 91,500
McDermott International, Inc. ......................................... 5,000 88,750
-------------
394,963
-------------
FINANCE -- 9.5%
Banks -- 2.6%
Chase Manhattan Corp. ................................................. 400 37,800
Fifth Third Bancorp.................................................... 2,000 140,000
Summit Bancorp......................................................... 2,000 89,750

Financial Services -- 4.0%
Alex Brown, Inc. ...................................................... 750 45,094
Capital One Financial Corp. ........................................... 3,000 108,375
Dean Witter, Discover & Co. ........................................... 570 38,974
Federal National Mortgage Association.................................. 3,000 123,750
Morgan Stanley Group, Inc. ............................................ 1,500 90,187
</TABLE>

- ---------------------

24
<PAGE> 20

<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- (continued)
Insurance -- 2.9%
Aetna, Inc. ........................................................... 529 $ 38,154
Allstate Corp. ........................................................ 3,000 180,750
Equitable Cos., Inc. .................................................. 3,000 74,250
-------------
967,084
-------------
HEALTHCARE -- 13.4%
Drugs -- 8.2%
American Home Products Corp. .......................................... 1,500 96,375
Biogen, Inc.+.......................................................... 2,000 76,500
Bristol-Myers Squibb Co. .............................................. 1,000 113,750
Glaxo Wellcome PLC ADR................................................. 3,000 98,625
Ligand Pharmaceuticals, Inc.+.......................................... 10,000 120,625
Lilly (Eli) & Co. ..................................................... 1,000 76,500
Merck & Co., Inc. ..................................................... 1,000 83,000
Schering-Plough Corp. ................................................. 750 53,437
Teva Pharmaceutical Industries Ltd. ADR................................ 950 43,938
Warner-Lambert Co. .................................................... 1,000 71,500

Health Services -- 1.0%
Advanced Health Corp.+................................................. 5,000 71,250
Chiron Corp.+.......................................................... 1,400 27,125

Medical Products -- 4.2%
Allegiance Corp. ...................................................... 600 13,575
Allergan, Inc. ........................................................ 2,000 64,250
Baxter International, Inc. ............................................ 3,000 127,500
Johnson & Johnson Co. ................................................. 1,000 53,125
Medtronic, Inc. ....................................................... 1,000 66,125
Nitinol Medical Technologies, Inc.+.................................... 5,000 54,375
Pfizer, Inc. .......................................................... 600 53,775
-------------
1,365,350
-------------
INDUSTRIAL & COMMERCIAL -- 6.6%
Aerospace & Military Technology -- 3.3%
Boeing Co. ............................................................ 1,000 99,375
United Technologies Corp. ............................................. 1,700 238,425

Business Services -- 0.4%
Forrester Research, Inc.+.............................................. 500 10,687
NCO Group, Inc+........................................................ 2,000 34,250

Electrical Equipment -- 0.4%
General Electric Co. .................................................. 400 41,600

Machinery -- 1.2%
Caterpillar, Inc. ..................................................... 1,000 79,125
Deere & Co. ........................................................... 1,000 44,625

Multi-Industry -- 1.3%
Rockwell International Corp. .......................................... 2,000 128,500
-------------
676,587
-------------
INFORMATION & ENTERTAINMENT -- 3.5%
Broadcasting & Media -- 1.2%
Cox Radio, Inc.+....................................................... 1,000 17,500
Mecklermedia Corp.+.................................................... 5,000 101,250
</TABLE>

---------------------

25
<PAGE> 21

<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- (continued)
Leisure & Tourism -- 2.3%
Callaway Golf Co. ..................................................... 2,000 $ 60,750
Carnival Corp. ........................................................ 3,000 94,875
MGM Grand, Inc.+....................................................... 1,000 38,625
Sun International Hotels Ltd.+......................................... 875 43,422
-------------
356,422
-------------
INFORMATION TECHNOLOGY -- 14.0%
Communication Equipment -- 0.9%
Ericsson (L.M.) Telephone Co. ADR...................................... 1,870 57,736
Lason Holdings, Inc. .................................................. 2,000 39,000

Computers & Business Equipment -- 2.3%
Hewlett-Packard Co. ................................................... 800 43,100
International Business Machines Corp. ................................. 1,000 159,375
International Network Services+........................................ 1,000 32,000

Electronics -- 3.9%
Cymer, Inc.+........................................................... 5,000 166,250
Intel Corp. ........................................................... 1,000 126,875
Nokia Corp. ADR........................................................ 1,000 56,125
Perkin-Elmer Corp. .................................................... 800 49,300

Software -- 3.4%
Cisco Systems, Inc.+................................................... 820 55,658
Computer Associates International, Inc. ............................... 2,000 131,500
Microsoft Corp.+....................................................... 1,000 156,875

Telecommunications -- 3.5%
Deutsche Telekom AG ADR................................................ 2,000 42,750
LCC International, Inc.+............................................... 1,000 16,000
Lucent Technologies, Inc. ............................................. 3,324 170,355
Orckit Communications, Ltd.+........................................... 1,000 11,250
WorldCom, Inc.+........................................................ 5,000 115,625
-------------
1,429,774
-------------
MATERIALS -- 8.6%
Chemicals -- 0.8%
Olin Corp. ............................................................ 2,000 79,750

Metals & Minerals -- 1.4%
Dal-Tile International, Inc.+.......................................... 7,000 148,750

Paper Products -- 6.4%
Champion International Corp. .......................................... 2,500 107,500
Georgia-Pacific Corp. ................................................. 2,000 145,500
International Paper Co. ............................................... 2,000 85,000
Union Camp Corp. ...................................................... 3,000 147,375
Willamette Industries, Inc. ........................................... 2,500 170,000
-------------
883,875
-------------
REAL ESTATE -- 0.6%
Real Estate Investment Trusts -- 0.6%
Innkeepers USA Trust................................................... 5,000 62,500
-------------
UTILITIES -- 0.9%
Telephone -- 0.9%
AT&T Corp. ............................................................ 1,000 39,250
</TABLE>

- ---------------------

26
<PAGE> 22

<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Telephone -- (continued)
GTE Corp. ............................................................. 1,200 $ 53,850
-------------
93,100
-------------
TOTAL COMMON STOCK (cost $6,463,041)................................... 7,263,942
-------------
PREFERRED STOCK -- 0.7%
----------------------------------------------------------------------------------------------------
FINANCE -- 0.0%
Insurance -- 0.0%
Aetna, Inc. 6.25%...................................................... 59 4,381
INFORMATION & ENTERTAINMENT -- 0.7%
Broadcasting & Media -- 0.7%
Multicanal Participacoes SA ADR........................................ 5,000 70,625
-------------
TOTAL PREFERRED STOCK (cost $81,978)................................... 75,006
-------------
PRINCIPAL
BONDS & NOTES -- 10.2% AMOUNT
----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT -- 10.2%
U.S. Treasury Notes -- 10.2%
United States Treasury Notes 6.50% 2001................................ $ 250,000 256,603
United States Treasury Notes 6.50% 2006................................ 250,000 258,202
United States Treasury Notes 6.88% 2006................................ 500,000 528,435
-------------
TOTAL BONDS & NOTES (cost $1,014,361).................................. 1,043,240
-------------
TOTAL INVESTMENT SECURITIES (cost $7,559,380).......................... 8,382,188
-------------
REPURCHASE AGREEMENT -- 15.7%
----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 15.7%
Joint Repurchase Agreement Account (Note 3)
(cost $1,605,000).................................................... 1,605,000 1,605,000
-------------
TOTAL INVESTMENTS --
(cost $9,164,380) 97.7% 9,987,188
Other assets less liabilities -- 2.3 236,606
------- -------------
NET ASSETS -- 100.0% $10,223,794
===== =============
</TABLE>

-----------------------------

+ Non-income producing securities

ADR -- American Depository Receipt

See Notes to Financial Statements

---------------------

27
<PAGE> 23

- ---------------------

SUNAMERICA SERIES TRUST
BALANCED/PHOENIX INVESTMENT
COUNSEL PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 57.3% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 5.9%
Apparel & Textiles -- 1.0%
NIKE, Inc. Class B .................................................... 12,000 $ 682,500

Automotive -- 0.4%
Lear Corp.+............................................................ 8,100 290,588

Retail -- 4.5%
CVS Corp. ............................................................. 12,800 526,400
Home Depot, Inc. ...................................................... 10,000 521,250
Office Depot, Inc.+.................................................... 2,000 39,000
PetSmart, Inc.+........................................................ 15,400 392,700
Safeway, Inc.+......................................................... 16,500 670,312
Staples, Inc. +........................................................ 20,000 395,000
TJX Cos., Inc. ........................................................ 13,300 600,163
------------
4,117,913
------------
CONSUMER STAPLES -- 4.8%
Food, Beverage & Tobacco -- 2.3%
Campbell Soup Co. ..................................................... 4,000 330,500
Coca-Cola Co. ......................................................... 12,000 613,500
PepsiCo, Inc. ......................................................... 22,000 657,250

Household Products -- 2.5%
Colgate-Palmolive Co. ................................................. 4,000 370,500
Gillette Co. .......................................................... 8,700 641,625
Procter & Gamble Co. .................................................. 7,000 761,250
------------
3,374,625
------------
ENERGY -- 6.8%
Energy Services -- 4.1%
Baker Hughes, Inc. .................................................... 16,600 607,975
British Petroleum Co. PLC ADR.......................................... 2,000 277,500
Chevron Corp. ......................................................... 10,000 670,000
Halliburton Co. ....................................................... 5,000 301,250
Royal Dutch Petroleum Co. ADR.......................................... 4,000 679,500
Schlumberger Ltd. ..................................................... 3,000 312,000

Energy Sources -- 2.7%
Anadarko Petroleum Corp. .............................................. 3,000 200,625
Apache Corp. .......................................................... 9,000 327,375
Enron Oil & Gas Co. ................................................... 10,000 266,250
ENSCO International, Inc.+............................................. 12,500 548,437
Noble Affiliates, Inc. ................................................ 12,000 565,500
------------
4,756,412
------------
FINANCE -- 9.0%
Banks -- 1.9%
BankAmerica Corp. ..................................................... 4,400 453,200
Chase Manhattan Corp. ................................................. 4,000 378,000
Citicorp............................................................... 3,500 382,375
Mellon Bank Corp. ..................................................... 1,850 133,663
</TABLE>

- ---------------------

28
<PAGE> 24

<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services -- 3.9%
Donaldson Lufkin & Jenrette, Inc. ..................................... 2,500 $ 89,063
First Data Corp. ...................................................... 14,000 558,250
First USA, Inc. ....................................................... 21,400 703,525
MBNA Corp. ............................................................ 5,000 201,875
Price (T. Rowe) Associates, Inc. ...................................... 9,450 341,381
Travelers Group, Inc. ................................................. 17,867 804,000

Insurance -- 3.2%
Allstate Corp. ........................................................ 13,500 813,375
American International Group, Inc. .................................... 4,000 460,000
Conseco, Inc. ......................................................... 7,000 391,125
Marsh & McLennan Cos. ................................................. 3,000 340,125
MGIC Investment Corp. ................................................. 3,500 262,062
------------
6,312,019
------------
HEALTHCARE -- 7.3%
Drugs -- 4.1%
American Home Products Corp. .......................................... 7,000 449,750
Amgen, Inc.+........................................................... 5,000 304,375
Bristol-Myers Squibb Co. .............................................. 3,000 341,250
Merck & Co., Inc. ..................................................... 10,000 830,000
Pfizer, Inc. .......................................................... 10,000 896,250

Health Services -- 1.0%
Columbia/HCA Healthcare Corp. ......................................... 18,000 720,000

Medical Products -- 2.2%
Abbott Laboratories, Inc. ............................................. 2,500 139,375
Boston Scientific Corp.+............................................... 6,000 350,250
Johnson & Johnson Co. ................................................. 6,000 318,750
Medtronic, Inc. ....................................................... 11,200 740,600
------------
5,090,600
------------
INDUSTRIAL & COMMERCIAL -- 8.7%
Aerospace & Military Technology -- 2.5%
AlliedSignal, Inc. .................................................... 5,000 366,250
Boeing Co. ............................................................ 7,000 695,625
United Technologies Corp. ............................................. 5,000 701,250

Business Services -- 2.1%
Cognizant Corp.+....................................................... 12,000 414,000
Corrections Corporation America+....................................... 10,000 248,750
Philip Environmental, Inc.+............................................ 10,000 130,000
Republic Industries, Inc.+............................................. 5,500 183,563
USA Waste Services, Inc.+.............................................. 14,690 473,752

Electrical Equipment -- 2.3%
General Electric Co. .................................................. 14,000 1,456,000
Westinghouse Electric Corp. ........................................... 10,000 187,500

Machinery -- 1.2%
Deere & Co. ........................................................... 9,000 401,625
Dover Corp. ........................................................... 8,100 432,337

Transportation -- 0.6%
Tidewater, Inc. ....................................................... 9,000 393,750
------------
6,084,402
------------
INFORMATION & ENTERTAINMENT -- 1.8%
Broadcasting & Media -- 0.2%
New York Times Co. Class A ............................................ 4,000 149,500
</TABLE>

---------------------

29
<PAGE> 25
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT (continued)
Leisure & Tourism -- 1.6%
Disney (Walt) Co. ..................................................... 5,300 $ 390,875
HFS, Inc.+............................................................. 1,300 84,175
Hilton Hotels Corp. ................................................... 10,000 292,500
Marriott International, Inc. .......................................... 7,000 390,250
------------
1,307,300
------------
INFORMATION TECHNOLOGY -- 10.6%
Computers & Business Equipment -- 4.3%
3Com Corp.+............................................................ 10,000 751,250
Honeywell, Inc. ....................................................... 6,000 411,750
International Business Machines Corp. ................................. 7,500 1,195,312
Sun Microsystems, Inc.+................................................ 11,000 640,750

Electronics -- 2.0%
Intel Corp. ........................................................... 8,500 1,078,438
Micron Technology, Inc. ............................................... 4,000 132,500
Newbridge Networks Corp.+.............................................. 7,400 220,150

Software -- 4.1%
Cisco Systems, Inc.+ .................................................. 20,000 1,357,500
Computer Associates International, Inc. ............................... 10,500 690,375
GT Interactive Software Corp.+......................................... 7,000 82,250
Oracle Systems Corp.+.................................................. 15,000 735,000

Telecommunications -- 0.2%
Deutsche Telekom ADR+.................................................. 5,800 123,975
------------
7,419,250
------------
MATERIALS -- 1.4%
Chemicals -- 1.4%
duPont (E.I.) de Nemours & Co. ........................................ 2,000 188,500
Monsanto Co. .......................................................... 20,000 795,000
------------
983,500
------------
UTILITIES -- 1.0%
Gas & Pipeline Utilities -- 1.0%
Consolidated Natural Gas Co. .......................................... 5,300 302,763
Transocean Offshore, Inc. ............................................. 6,250 376,562
------------
679,325
------------
TOTAL COMMON STOCK (cost $34,817,817).................................. 40,125,346
------------

<CAPTION>
PRINCIPAL
BONDS & NOTES -- 35.6% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 4.9%
Financial Services -- 4.9%
Airplane Pass Through Trust 10.88% 2019................................ $ 100,000 111,500
Astra Overseas Finance BV 8.75% 2003*.................................. 115,000 116,725
CS First Boston Mortgage Securities Corp., 7.18% 2027.................. 300,000 302,250
DLJ Mortgage Acceptance Corp. 7.58% 2028*.............................. 100,000 105,078
Fleetwood Credit Grantor Trust 6.90% 2012.............................. 96,278 98,016
GE Capital Mortgage Services, Inc. 7.25% 2026(1)....................... 298,675 295,259
Merrill Lynch Mortgage Investors, Inc. 7.15% 2025...................... 250,000 252,695
Merrill Lynch Mortgage Investors, Inc. 7.42% 2026...................... 100,000 103,086
Nationslink Funding Corp., 7.69% 2005.................................. 250,000 262,148
Residential Asset Securitization Trust 8.00% 2026(1)................... 293,755 302,146
Residential Funding Mortgage Securities 6.75% 2011(1).................. 292,370 284,695
Residential Funding Mortgage Securities 7.10% 2026..................... 200,000 195,625
</TABLE>

- ---------------------

30
<PAGE> 26
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Residential Funding Mortgage Securities 7.25% 2026..................... $ 298,105 $ 295,310
Resolution Trust Corp. 6.80% 2027...................................... 192,469 189,852
Structured Asset Securities Corp. 6.53% 2028........................... 100,000 99,016
Structured Asset Securities Corp. 7.00% 2026(1)........................ 300,000 299,438
Structured Asset Securities Corp. 7.38% 2024........................... 140,000 141,028
------------
3,453,867
------------
INFORMATION TECHNOLOGY -- 0.3%
Electronics -- 0.3%
ADT Operations, Inc. zero coupon 2010.................................. 400,000 236,500
------------
MATERIALS -- 0.1%
Forest Products -- 0.1%
Buckeye Cellulose Corp. 9.25% 2008..................................... 100,000 103,000
------------
MUNICIPAL BONDS -- 1.3%
Municipal Bonds -- 1.3%
Dade County Florida Educational Facilities Authority Revenue 5.75%
2020................................................................. 40,000 40,884
Kern County California Pension Obligation 7.26% 2014................... 50,000 51,506
Long Beach California Pension Obligation 6.87% 2006.................... 30,000 30,378
Miami Beach Florida Special Obligation 8.60% 2021...................... 100,000 110,035
Newport News 7.05% 2025................................................ 250,000 244,298
Orange County California Pension Obligation 7.62% 2008................. 160,000 169,811
San Bernardino County California Financing Authority 6.87% 2008........ 15,000 15,251
San Bernardino County California Financing Authority 6.94% 2009........ 35,000 35,616
University Miami Florida Exchange Revenue 7.65% 2020................... 145,000 146,950
Ventura County California Pension Obligation 6.54% 2005................ 30,000 29,601
------------
874,330
------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 1.3%
Foreign Government -- 1.3%
Federative Republic of Brazil 5.00% 2024(2)............................ 150,000 95,437
Federative Republic of Brazil 6.50% 2024(2)............................ 150,000 114,000
Republic of Argentina 5.25% 2023(2).................................... 250,000 157,500
Republic of Argentina 6.38% 2023(2).................................... 200,000 151,750
Republic of Colombia 9.00% 1997........................................ 300,000 303,000
United Mexican States 7.56% 2001*...................................... 100,000 100,163
------------
921,850
------------
REAL ESTATE -- 0.4%
Real Estate Companies -- 0.4%
Green Tree Financial Corp. 7.40% 2026.................................. 125,000 128,398
Green Tree Financial Corp. 7.60% 2027.................................. 125,000 127,217
------------
255,615
------------
U.S. GOVERNMENT & AGENCIES -- 27.3%
U.S. Government & Agencies -- 27.3%
Government National Mortgage Association 6.50% 2023.................... 271,860 265,914
Government National Mortgage Association 6.50% 2026.................... 336,804 327,434
United States Treasury Bonds 6.00% 2026................................ 335,000 315,895
United States Treasury Bonds 7.63% 2025................................ 150,000 172,429
United States Treasury Notes 5.75% 2000................................ 350,000 349,563
United States Treasury Notes 5.88% 2001................................ 5,800,000 5,809,976
United States Treasury Notes 6.50% 2005................................ 1,450,000 1,493,949
United States Treasury Notes 6.50% 2006................................ 6,695,000 6,914,663
United States Treasury Notes 6.75% 2000................................ 1,200,000 1,236,564
United States Treasury Notes 6.88% 2000................................ 450,000 465,327
</TABLE>

---------------------

31
<PAGE> 27
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT & AGENCIES (continued)
United States Treasury Notes 7.13% 2000................................ $ 150,000 $ 156,093
United States Treasury Notes 7.50% 2005................................ 850,000 930,087
United States Treasury Notes 7.88% 2004................................ 600,000 669,750
------------
19,107,644
------------
TOTAL BONDS & NOTES (cost $24,394,080)................................. 24,952,806
------------
TOTAL INVESTMENT SECURITIES (cost $59,211,897)......................... 65,078,152
------------
SHORT-TERM SECURITIES -- 15.0%
----------------------------------------------------------------------------------------------------
CORPORATE SHORT-TERM NOTES -- 13.2%
Abbott Labatories 5.25% due 12/04/96................................... 1,975,000 1,974,136
AlliedSignal, Inc. 5.25% due 12/02/96.................................. 1,500,000 1,499,781
Assets Securitization Cooperative 5.27% due 12/05/96................... 550,000 549,678
Ciesco L.P. 5.25% due 12/02/96......................................... 220,000 219,968
Donnelley (R.R.) & Sons Co. 5.27% due 12/09/96......................... 1,000,000 998,829
General Electric Co. 5.28% due 1/08/97................................. 1,045,000 1,039,176
General Reinsurance Corp. 5.27% due 12/24/96........................... 1,000,000 996,633
Kimberly-Clark Corp. 5.24% due 12/17/96................................ 300,000 299,301
McKenna Triangle National Corp. 5.26% due 12/19/96..................... 645,000 643,304
Receivables Capital Corp. 5.29% due 12/02/96........................... 1,000,000 999,853
------------
9,220,659
------------
FEDERAL AGENCY OBLIGATIONS -- 1.5%
Federal Home Loan Mortgage Discount Notes 5.70% due 12/02/96........... 135,000 134,979
Federal National Mortgage Association 5.23% due 12/20/96............... 920,000 917,460
------------
1,052,439
------------
U.S. GOVERNMENT -- 0.3%
United States Treasury Bills 4.86% due 2/06/97......................... 210,000 207,975
------------
TOTAL SHORT-TERM SECURITIES (cost $10,481,199)......................... 10,481,073
------------
TOTAL INVESTMENTS --
(cost $69,693,096) 107.9% 75,559,225
Liabilities in excess of other assets -- (7.9) (5,538,667)
------- ------------
NET ASSETS -- 100.0% $70,020,558
============
-------
-------
</TABLE>

-----------------------------

+ Non-income producing securities

* Resale restricted to qualified institutional buyers

(1) Fair valued security; see Note 2

(2) Variable rate securities; rate as of November 30, 1996

ADR -- American Depository Receipt

See Notes to Financial Statements

- ---------------------

32
<PAGE> 28

- ---------------------

SUNAMERICA SERIES TRUST
ASSET ALLOCATION PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 58.3% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 10.6%
Apparel & Textiles -- 1.5%
Fruit Of The Loom, Inc.+............................................. 132,600 $ 4,723,875

Automotive -- 3.7%
Auto Desk, Inc. ..................................................... 63,700 1,783,600
Ford Motor Co. ...................................................... 135,200 4,427,800
Goodyear Tire & Rubber Co. .......................................... 114,300 5,543,550

Housing -- 1.9%
Centex Corp. ........................................................ 67,600 2,433,600
Lennar Corp. ........................................................ 132,200 3,437,200

Retail -- 3.5%
Fleming Cos., Inc. .................................................. 238,000 3,897,250
Penney (J.C.) Co., Inc. ............................................. 71,600 3,848,500
Sears, Roebuck & Co. ................................................ 69,100 3,437,725
------------
33,533,100
------------
CONSUMER STAPLES -- 6.3%
Food, Beverage & Tobacco -- 4.0%
Chiquita Brands International, Inc. ................................. 196,900 2,608,925
Philip Morris Cos., Inc. ............................................ 53,900 5,558,437
RJR Nabisco Holdings Corp. .......................................... 64,240 2,055,680
Supervalu, Inc. ..................................................... 78,200 2,316,675

Household Products -- 2.3%
Sunbeam Corp. ....................................................... 134,200 3,707,275
Unilever NV.......................................................... 20,300 3,514,438
------------
19,761,430
------------
ENERGY -- 6.2%
Energy Services -- 4.5%
Ashland, Inc. ....................................................... 62,100 2,980,800
CMS Energy Corp. .................................................... 43,500 1,413,750
Texaco, Inc. ........................................................ 47,600 4,718,350
Tosco Corp. ......................................................... 67,800 5,161,275

Energy Sources -- 1.7%
Atlantic Richfield Co. .............................................. 39,000 5,425,875
------------
19,700,050
------------
FINANCE -- 12.6%
Banks -- 4.4%
BankAmerica Corp. ................................................... 48,500 4,995,500
Chase Manhattan Corp. ............................................... 22,200 2,097,900
NationsBank Corp. ................................................... 42,900 4,445,512
Republic New York Corp. ............................................. 27,000 2,382,750

Financial Services -- 2.3%
Dean Witter, Discover & Co. ......................................... 80,500 5,504,188
Lehman Brothers Holdings, Inc. ...................................... 65,000 1,893,125
</TABLE>

---------------------

33
<PAGE> 29

<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance -- 5.9%
Aetna, Inc. ......................................................... 82,100 $ 5,921,462
CIGNA Corp. ......................................................... 33,800 4,778,475
Integon Corp. ....................................................... 15,100 290,675
Lincoln National Corp. .............................................. 54,100 2,914,638
Loews Corp. ......................................................... 21,800 2,021,950
Partner Residential Holding Corp. ................................... 81,000 2,632,500
------------
39,878,675
------------
HEALTHCARE -- 2.6%
Health Services -- 1.2%
Tenet Healthcare Corp.+.............................................. 166,300 3,720,963

Medical Products -- 1.4%
Baxter International, Inc. .......................................... 109,000 4,632,500
------------
8,353,463
------------
INDUSTRIAL & COMMERCIAL -- 6.5%
Aerospace & Military Technology -- 3.5%
Lear Corp.+.......................................................... 73,600 2,640,400
McDonnell Douglas Corp. ............................................. 122,600 6,482,475
Northrop Grumman Corp. .............................................. 23,400 1,945,125

Transportation -- 3.0%
AMR Corp.+........................................................... 32,900 3,002,125
Canadian Pacific Ltd. ............................................... 139,500 3,836,250
Consolidated Freightways, Inc. ...................................... 116,100 2,800,912
------------
20,707,287
------------
INFORMATION & ENTERTAINMENT -- 3.1%
Leisure & Tourism -- 3.1%
Brunswick Corp. ..................................................... 166,200 4,238,100
Continental Airlines, Inc. .......................................... 194,400 5,516,100
------------
9,754,200
------------
INFORMATION TECHNOLOGY -- 2.3%
Electronics -- 2.3%
Avnet, Inc. ......................................................... 91,600 5,358,600
Teradyne, Inc.+...................................................... 80,600 1,904,175
------------
7,262,775
------------
MATERIALS -- 6.4%
Chemicals -- 0.9%
Geon Co. ............................................................ 142,100 2,682,137

Forest Products -- 4.4%
Georgia-Pacific Corp. ............................................... 59,200 4,306,800
Owens Illinois, Inc.+................................................ 271,300 5,019,050
Stone Container Corp. ............................................... 198,400 3,050,400
Universal Corp. ..................................................... 52,400 1,506,500

Metals & Minerals -- 1.1%
AK Steel Holding Corp. .............................................. 92,600 3,530,375
------------
20,095,262
------------
</TABLE>

- ---------------------

34
<PAGE> 30

<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 1.7%
Electric Utilities -- 1.7%
Long Island Lighting Co. ............................................ 212,700 $ 4,227,413
Unicom Corp. ........................................................ 43,600 1,160,850
------------
5,388,263
------------
TOTAL COMMON STOCK (cost $150,722,326)............................... 184,434,505
------------
<CAPTION>

PREFERRED STOCK -- 0.1%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 0.1%
Broadcasting & Media -- 0.1%
Time Warner, Inc. Series M 10.25% (cost $252,516).................... 251 272,492
------------
<CAPTION>

PRINCIPAL
BONDS & NOTES -- 35.1% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 0.2%
Housing -- 0.2%
Empresas Ica Sociedad 9.75% 1998..................................... $ 310,000 314,030
United States Home Corp. 7.95% 2001.................................. 405,000 409,050
------------
723,080
------------
CONSUMER STAPLES -- 0.7%
Food, Beverage & Tobacco -- 0.6%
Ceval Alimentos 11.13% 2004*......................................... 300,000 303,188
Instituto Fomento Industrial 8.38% 2001*............................. 400,000 414,750
RJR Nabisco, Inc. 8.00% 2001......................................... 280,000 284,418
RJR Nabisco, Inc. 8.63% 2002......................................... 750,000 775,695

Household Products -- 0.1%
American Standard, Inc. 11.38% 2004.................................. 390,000 422,175
------------
2,200,226
------------
ENERGY -- 0.9%
Energy Services -- 0.8%
Arkla, Inc. 8.88% 1999............................................... 675,000 715,595
Arkla, Inc. 9.20% 1997............................................... 250,000 257,322
Oryx Energy Co. 9.50% 1999........................................... 800,000 851,936
Tosco Corp. 7.00% 2000............................................... 550,000 561,110
YPF Sociedad Anonima 7.50% 2002(1)................................... 96,511 98,287

Energy Sources -- 0.1%
Empresa Col de Petroleos 7.25% 1998.................................. 240,000 242,400
------------
2,726,650
------------
FINANCE -- 9.7%
Banks -- 1.2%
Auburn Hills Trust 12.00% 2020....................................... 325,000 502,781
Banco Nacional de Comercio Exterior SNC 8.63% 2000*.................. 210,000 218,137
BankAmerica Corp. 9.75% 2000......................................... 400,000 445,404
Continental Bank NA 11.25% 2001...................................... 300,000 323,142
Continental Bank NA 12.50% 2001...................................... 450,000 553,990
Corporacion Andina de Fomento 7.25% 1998............................. 20,000 20,258
Security Pacific Corp. 11.50% 2000................................... 600,000 708,702
Signet Banking Corp. 9.63% 1999...................................... 775,000 834,388

Financial Services -- 8.5%
Airplanes Pass Through Trust 8.15% 2019(1)........................... 195,000 206,944
APP International Finance Co BV 10.25% 2000.......................... 520,000 534,650
</TABLE>

---------------------

35
<PAGE> 31
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Autoflow 1996 A Grantor Trust 7.48% 2002*(1)......................... $ 2,263,987 $ 2,300,069
Bear Stearns Mortgage Securities, Inc. 6.75% 2008.................... 1,000,959 985,163
Case Equipment Loan Trust 7.30% 2002................................. 445,709 453,210
Chevy Chase Auto Receivables 5.80% 2002.............................. 276,286 275,766
Countrywide Funding Corp. 8.43% 1999................................. 450,000 476,861
Discover Card Master Trust I 5.60% 2005(2)........................... 510,000 512,387
Discover Card Master Trust I 5.73% 2004(2)........................... 300,000 302,529
Discover Card Master Trust I 5.76% 2013(2)........................... 2,790,000 2,823,982
Discover Card Master Trust I 5.93% 2013(2)........................... 2,000,000 2,015,620
Fasco Grantor Trust 6.65% 2001(1).................................... 1,623,765 1,634,675
Financiera Energetica Nacional SA 9.38% 2006*........................ 310,000 332,866
Fingerhut Financial Services 6.45% 2002.............................. 920,000 931,785
Ford Capital BV 9.38% 1998........................................... 225,000 233,273
Ford Capital BV 9.50% 2001........................................... 800,000 898,432
Ford Credit Auto Loan Master Trust 6.50% 2002........................ 550,000 554,637
G.E. Captial Mortgage Services, Inc. 6.50% due 3/25/24............... 637,890 559,946
General Motors Acceptance Corp. 5.63% 2001........................... 750,000 731,580
General Motors Acceptance Corp. 7.63% 1998........................... 585,000 598,010
Imexsa Export Trust 10.13% 2003*..................................... 300,000 315,225
Nacional Financiera 5.88% 1998....................................... 860,000 843,875
Nacional Financiera 8.13% 1998....................................... 210,000 210,788
Nacional Financiera 8.46% 1998....................................... 600,000 609,285
Nacional Financiera 9.00% 1999....................................... 80,000 81,350
Nacional Financiera SNC 8.13% 1998*.................................. 250,000 250,938
Navistar Financial 6.55% 2001........................................ 304,626 306,719
NWA Trust 8.26% 2006................................................. 258,495 280,777
Olympic Financial Ltd. 13.00% 2000................................... 510,000 561,000
Premier Auto Trust 4.90% 1998........................................ 141,353 140,646
Premier Auto Trust 7.85% 1998........................................ 1,040,000 1,045,200
Resolution Funding Corp. zero coupon 2021............................ 1,580,000 313,093
Sears Credit Account Master Trust 6.20% 2006......................... 700,000 701,967
Sears Credit Account Master Trust 8.10% 2004......................... 700,000 741,776
Standard Credit Card Master Trust 6.25% 1998......................... 260,000 260,650
Standard Credit Card Master Trust 8.25% 2003......................... 1,010,000 1,094,588
Standard Credit Card Master Trust 8.25% 2007......................... 1,610,000 1,789,113
------------
30,516,177
------------
HEALTHCARE -- 0.1%
Health Services -- 0.1%
Tenet Healthcare Corp.+ 9.63% 2002................................... 240,000 264,900
------------
INDUSTRIAL & COMMERCIAL -- 0.8%
Aerospace & Military Technology -- 0.1%
Newport News Shipbuilding, Inc. 8.63% 2006*.......................... 210,000 214,662
Tevecap SA 12.63% 2004*.............................................. 200,000 204,060

Business Services -- 0.3%
Loewen Group International, Inc. 7.75% 2001*......................... 650,000 664,332
Multicanal Participacoes SA 12.63% 2004*............................. 200,000 215,000
</TABLE>

- ---------------------

36
<PAGE> 32
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Multi-Industry -- 0.4%
Tenneco, Inc. 10.00% 1998............................................ $ 1,280,000 $ 1,360,986
------------
2,659,040
------------
INFORMATION & ENTERTAINMENT -- 3.1%
Broadcasting & Media -- 1.3%
CBS 7.75% 1999....................................................... 740,000 748,902
Tele-Communications, Inc. 9.65% 2003................................. 375,000 409,500
Time Warner, Inc. 7.95% 2000......................................... 2,145,000 2,234,339
Time Warner, Inc. 9.63% 2002......................................... 200,000 226,870
Viacom International, Inc. 9.13% 1999................................ 175,000 179,156
Viacom International, Inc. 10.25% 2001............................... 175,000 191,625

Cable -- 0.1%
Rogers Cablesystems 9.63% 2002....................................... 440,000 460,900

Leisure & Tourism -- 1.7%
America West Airlines 8.16% 2002..................................... 2,000,000 2,010,000
Blockbuster Entertainment Corp. 6.63% 1998........................... 580,000 581,149
Continental Airlines Pass Through Trust. 10.22% 2014................. 1,599,671 1,901,821
Norwest Airlines Corp. 8.97% 2015.................................... 880,000 944,918
------------
9,889,180
------------
INFORMATION TECHNOLOGY -- 1.5%
Communication Equipment -- 1.0%
Cablevision Industries Corp. 10.75% 2002............................. 1,760,000 1,927,042
TCI Communications, Inc. 6.28% 2003(1)(2)............................ 1,205,000 1,197,469
TCI Communications, Inc. 6.46% 2000.................................. 95,000 94,645

Computers & Business Equipment -- 0.3%
Comdisco, Inc. 5.75% 2001............................................ 500,000 490,395
Net Sat Services Ltd. 12.75% 2004*................................... 250,000 261,562

Telecommunications -- 0.2%
360 Communications Co. 7.13% 2003.................................... 725,000 728,436
------------
4,699,549
------------
MATERIALS -- 0.2%
Forest Products -- 0.2%
Grupo Industrial Durango SA de CV 12.00% 2001........................ 270,000 286,875
PT Indah Kiat Pulp & Paper Corp. 8.88% 2000.......................... 210,000 208,163
------------
495,038
------------
MUNICIPAL BONDS -- 0.4%
Municipal Bonds -- 0.4%
Connecticut State Health And Educational Facilities Authority 5.70%
2025............................................................... 450,000 456,457
Massachusetts Bay Transportation Authority Massachusetts 5.25%
2020............................................................... 305,000 297,378
Metropolitan Pier And Exposition Authority Illinois 5.25% 2027....... 450,000 431,510
------------
1,185,345
------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 1.3%
Foreign Government -- 1.3%
Province of Quebec 13.25% 2014....................................... 625,000 758,963
Republic of Argentina 8.54% 1998(1)(2)............................... 52,930 53,080
Republic of Argentina 8.54% 1998(1)(2)............................... 308,200 309,072
Republic of Argentina zero coupon 2000............................... 2,460,000 1,315,608
Rio de Janeiro 10.38% 1999........................................... 240,000 246,900
</TABLE>

---------------------

37
<PAGE> 33
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
NON-U.S. GOVERNMENT OBLIGATIONS (continued)
Foreign Government (continued)
Russian Federation 9.25% 2001*....................................... $ 400,000 $ 398,200
State of Israel 6.38% 2005........................................... 635,000 620,395
United Mexican States 7.56% 1997(2).................................. 370,000 370,610
United Mexican States 9.75% 2001..................................... 110,000 113,781
------------
4,186,609
------------
REAL ESTATE -- 0.3%
Real Estate Investment Trusts -- 0.3%
Chelsea GCA Realty, Inc. 7.75% 2001.................................. 350,000 355,617
Tanger Properties Ltd. 8.75% 2001.................................... 560,000 567,185
------------
922,802
------------
U.S. GOVERNMENT & AGENCIES -- 15.4%
U.S. Government & Agencies -- 15.4%
Federal Home Loan Mortgage Corp. 6.00% 2008.......................... 1,000,000 952,191
Federal Home Loan Mortgage Corp. 6.00% 2016.......................... 1,518,401 1,497,523
Federal Home Loan Mortgage Corp. 7.50% 2099.......................... 5,000,000 5,065,600
Federal Home Loan Mortgage Corp. 8.20% 1998.......................... 310,000 311,066
Federal National Mortgage Association 3.50% 2019..................... 3,000,000 2,645,610
Federal National Mortgage Association 7.00% 2026..................... 6,392,932 6,346,966
Federal National Mortgage Association 7.50% TBA...................... 2,000,000 2,041,860
Federal National Mortgage Association 8.00% TBA...................... 1,000,000 1,027,810
Federal National Mortgage Association 8.50% 2005..................... 1,640,000 1,749,158
Federal National Mortgage Association 8.50% 2006..................... 78,043 81,530
Federal National Mortgage Association 8.50% 2008..................... 868,330 904,957
Federal National Mortgage Association 8.50% 2026..................... 991,978 1,033,819
Federal National Mortgage Association 8.50% TBA...................... 1,000,000 1,042,180
Federal National Mortgage Association 8.50% TBA...................... 3,000,000 3,126,540
Government National Mortgage Association 7.00% TBA................... 1,000,000 994,060
Government National Mortgage Association 7.50% 2023.................. 965,558 983,662
Government National Mortgage Association 7.50% TBA................... 4,000,000 4,057,480
Government National Mortgage Association 8.00% TBA................... 6,000,000 6,183,720
United States Treasury Bonds 7.88% 2021@............................. 280,000 326,724
United States Treasury Bonds 8.75% 2017@............................. 4,740,000 5,962,019
United States Treasury Bonds 13.75% 2004............................. 200,000 294,156
United States Treasury Bonds Strip zero coupon 2017.................. 50,000 12,867
United States Treasury Bonds Strip zero coupon 2019.................. 40,000 8,803
United States Treasury Bonds Strip zero coupon 2020@................. 5,410,000 1,152,005
United States Treasury Notes 7.88% 2004@............................. 920,000 1,026,950
------------
48,829,256
------------
UTILITIES -- 0.5%
Electric Utilities -- 0.3%
Central Maine Power Co. 7.45% 1999................................... 885,000 887,850

Gas & Pipeline Utilities -- 0.2%
Bridas Corp. 12.50% 1999............................................. 660,000 697,950
------------
1,585,800
------------
TOTAL BONDS & NOTES (cost $108,605,845).............................. 110,883,652
------------
TOTAL INVESTMENT SECURITIES (cost $259,580,687)...................... 295,590,649
------------
</TABLE>

- ---------------------

38
<PAGE> 34
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 3.2% AMOUNT VALUE
----------------------------------------------------------------------------------------------------

<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 2.0%
Capital One Bank 6.48% due 8/15/97................................... $ 1,120,000 $ 1,122,912
Capital One Bank 8.33% due 2/10/97................................... 1,350,000 1,355,589
Capital One Bank 8.63% due 1/15/97................................... 1,000,000 1,002,860
Comdisco, Inc. 9.75% due 1/15/97..................................... 1,700,000 1,707,242
First USA Bank 8.10% due 2/21/97..................................... 400,000 401,880
K Mart Corp. 8.70% due 8/01/97....................................... 700,000 698,222
------------
6,288,705
------------
FOREIGN SHORT-TERM NOTES -- 1.2%
APP International Finance Co. BV zero coupon due 4/03/97............. 700,000 680,099
Banco de Brazil 9.50% due 8/28/97.................................... 80,000 81,300
British Aerospace PLC 7.55% due 5/15/97*............................. 150,000 150,897
Financiera Energetica Nacional SA 6.63% due 12/13/96................. 600,000 597,300
Petroleo Brasileiros SA 8.75% due 12/09/96........................... 50,000 50,008
Republic of Argentina zero coupon due 2/14/97........................ 1,180,000 1,162,300
Telebras 10.38% due 9/09/97.......................................... 250,000 255,950
Telecom Brasil 10.00% due 6/16/97.................................... 250,000 254,075
Telecomunicacoes Brasileiras SA 10.00% due 3/31/97................... 260,000 264,713
Telecomunicacoes Brasileiras SA 10.00% due 10/22/97.................. 380,000 386,887
------------
3,883,529
------------
TOTAL SHORT-TERM SECURITIES (cost $10,178,052)....................... 10,172,234
------------
<CAPTION>
REPURCHASE AGREEMENT -- 9.9%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 9.9%
Agreement with State Street Bank & Trust Co., bearing interest of
5.45% dated 11/29/96, to be repurchased 12/02/96 in the amount of
$31,400,059 and collateralized by $28,750,000 U.S. Treasury Bonds
7.88% due 11/25/04 @ (cost $31,386,000)............................ 31,386,000 31,386,000
------------
TOTAL INVESTMENTS --
(cost $301,144,739) 106.6% 337,148,883
Liabilities in excess of other assets -- (6.6) (20,760,457)
------ ------------
NET ASSETS -- 100.0% $316,388,426
====== ============
</TABLE>

-----------------------------

+ Non-income producing securities

* Resale restricted to qualified institutional buyers

(1) Fair valued security; see Note 2

(2) Variable rate security; rate as of November 30, 1996

ADS -- American 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.

---------------------

39
<PAGE> 35

NUMBER OF EXPIRATION VALUE AT VALUE AS OF UNREALIZED
CONTRACTS DESCRIPTION DATE TRADE DATE NOVEMBER 30, 1996 APPRECIATION
-----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
5 Long 90 Day Euro Dollar........... December 1996 $1,175,782 $ 1,181,375 $ 5,593
5 Long 90 Day Euro Dollar........... March 1997 1,173,657 1,181,875 8,218
5 Long 90 Day Euro Dollar........... June 1997 1,171,657 1,180,875 9,218
4 Long 90 Day Euro Dollar........... September 1997 937,030 943,900 6,870
4 Long 90 Day Euro Dollar........... December 1997 936,030 942,500 6,470
4 Long 90 Day Euro Dollar........... June 1998 935,725 941,100 5,375
Standard & Poor's 500
16 Long Index........................ December 1996 5,353,345 6,066,000 712,655
10 Long U.S. 2 Year Note............. March 1997 2,075,689 2,079,532 3,843
10 Long U.S. 5 Year Note............. March 1997 1,081,939 1,082,188 249
107 Long U.S. 10 Year Note............ March 1997 11,864,806 11,933,849 69,043
50 Long U.S. Treasury Bond........... December 1996 5,376,943 5,810,940 433,997
--------------
Net Unrealized Appreciation................................................... $1,261,531
=============
</TABLE>

See Notes to Financial Statements

- ---------------------

40
<PAGE> 36

- ---------------------

SUNAMERICA SERIES TRUST
UTILITY PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 83.2% SHARES VALUE
----------------------------------------------------------------------------------------------------

<S> <C> <C>
CONSUMER DISCRETIONARY -- 1.1%
Automotive -- 1.1%
Ford Motor Co. ......................................................... 2,100 $ 68,775
------------

CONSUMER STAPLES -- 2.3%
Food, Beverage & Tobacco -- 2.3%
Philip Morris Cos., Inc. ............................................... 1,400 144,375
------------

ENERGY -- 0.6%
Energy Services -- 0.6%
Exxon Corp. ............................................................ 400 37,850
------------

FINANCE -- 1.9%
Banks -- 1.3%
Mellon Bank Corp. ...................................................... 1,100 79,475

Financial Services -- 0.6%
Merrill Lynch & Co., Inc. .............................................. 1,900 39,663
------------

119,138
------------

INDUSTRIAL & COMMERCIAL -- 1.0%
Business Services -- 1.0%
Browning-Ferris Industries, Inc. ....................................... 2,200 65,725
------------

INFORMATION TECHNOLOGY -- 2.0%
Telecommunications -- 2.0%
Sociedade Tecnica de Equipamentos SA.................................... 30,400 93,449
Telefonica Delaware Peru SA ADR......................................... 1,700 32,937
------------

126,386
------------

REAL ESTATE -- 2.9%
Real Estate Investment Trusts -- 2.9%
Meditrust Corp. ........................................................ 4,900 183,138
------------

UTILITIES -- 71.4%
Electric Utilities -- 38.8%
CINergy Corp. .......................................................... 2,200 73,700
DPL, Inc. .............................................................. 7,300 177,938
DQE, Inc. .............................................................. 5,400 159,300
Duke Power Co. ......................................................... 5,300 245,787
FPL Group, Inc.+........................................................ 5,700 262,912
GPU, Inc. .............................................................. 2,800 94,150
Iberdrola SA ........................................................... 6,500 75,015
Illinova Corp. ......................................................... 6,000 159,000
Korea Electric Power Corp. ADR.......................................... 1,700 29,963
National Power PLC Corp. ............................................... 4,400 140,250
NIPSCO Industries, Inc. ................................................ 3,600 139,500
Pacificorp.............................................................. 4,600 96,600
Pinnacle West Capital Group............................................. 6,200 192,975
Portland General Corp. ................................................. 3,200 137,600

</TABLE>

---------------------

41
<PAGE> 37
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Electric Utilities (continued)
Southern Co. ........................................................... 6,000 $ 133,500
Teco Energy, Inc. ...................................................... 5,300 129,188
Telecomunicacoes Brasileras SA ADR...................................... 1,000 75,750
Texas Utilities Co. .................................................... 3,100 122,450
Gas & Pipeline Utilities -- 12.2%
American Water Works, Inc. ............................................. 600 11,850
CMS Energy Corp. ....................................................... 5,900 191,750
MCN Corp. .............................................................. 5,700 163,875
New Jersey Resources Corp. ............................................. 200 5,925
Pacific Enterprises..................................................... 4,900 150,062
PanEnergy Corp. ........................................................ 1,500 66,000
PECO Energy Co. ........................................................ 4,300 109,650
Williams Cos., Inc. .................................................... 1,200 67,350

Telephone -- 20.4%
Ameritech Corp. ........................................................ 3,300 194,287
AT&T Corp. ............................................................. 3,400 133,450
BellSouth Corp. ........................................................ 5,000 201,875
Compania de Telefonos Chile SA ADR...................................... 400 38,050
GTE Corp. .............................................................. 5,000 224,375
MCI Communications Corp. ............................................... 6,700 204,350
Pacific Telesis Group................................................... 4,100 151,700
SBC Communications, Inc. ............................................... 1,200 63,150
Sprint Corp. ........................................................... 1,700 71,188
-----------
4,494,465
-----------
TOTAL COMMON STOCK (cost $4,998,417).................................... 5,239,852
-----------

<CAPTION>
PREFERRED STOCK -- 10.6%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY -- 0.8%
Energy Sources -- 0.8%
Sun Co., Inc. $1.80..................................................... 2,000 51,250
-----------
FINANCE -- 5.2%
Financial Services -- 4.1%
International Paper Capital Trust 5.25%................................. 500 24,063
Merrill Lynch & Co., Inc. 6.00%......................................... 2,200 143,825
Salomon, Inc. 7.63%..................................................... 1,100 32,862
Salomon, Inc. 6.25%..................................................... 1,000 60,250
Insurance -- 1.1%
Aetna, Inc. 6.25%....................................................... 900 66,825
-----------
327,825
-----------
INDUSTRIAL & COMMERCIAL -- 0.5%
Business Services -- 0.5%
Amcor Ltd. 7.25%........................................................ 600 30,225
-----------
INFORMATION & ENTERTAINMENT -- 0.5%
Broadcasting & Media -- 0.5%
Hollinger International, Inc. 9.75%..................................... 3,000 32,625
-----------
INFORMATION TECHNOLOGY -- 1.4%
Communication Equipment -- 1.0%
AirTouch Communications, Inc. 6.00%..................................... 2,100 60,112
</TABLE>

- ---------------------

42
<PAGE> 38
<TABLE>
<CAPTION>
PREFERRED STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Computers & Business Equipment -- 0.4%
Alco Standard Corp. $5.04............................................... 300 $ 28,088
-----------
88,200
-----------
MATERIALS -- 0.8%
Metals & Minerals -- 0.8%
Coeur D' Alene Mines Corp. 7.00%........................................ 2,800 47,950
-----------
UTILITIES -- 1.4%
Gas & Pipeline Utilities -- 1.4%
Williams Cos., Inc. $3.50............................................... 1,000 88,000
-----------
TOTAL PREFERRED STOCK (cost $635,592)................................... 666,075
-----------

<CAPTION>
PRINCIPAL
CONVERTIBLE BONDS -- 2.9% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 0.3%
Retail -- 0.3%
Saks Holdings, Inc. 5.50% 2006.......................................... $ 20,000 20,250
-----------
HEALTHCARE -- 0.7%
Drugs -- 0.7%
Alza Corp. 5.00% 2006................................................... 20,000 19,900
Tenet Healthcare Corp. 6.00% 2005....................................... 20,000 20,900
-----------
40,800
-----------
INFORMATION TECHNOLOGY -- 0.7%
Electronics -- 0.7%
Solectron Corp. 6.00% 2006.............................................. 40,000 45,300
-----------
UTILITIES -- 1.2%
Electric Utilities -- 1.2%
Korea Electric Power Corp. 5.00% 2001................................... 30,000 29,400
New World Infrastructure Ltd. 5.00% 2001................................ 40,000 47,450
-----------
76,850
-----------
TOTAL CONVERTIBLE BONDS (cost $167,427)................................. 183,200
-----------
TOTAL INVESTMENT SECURITIES (cost $5,801,436)........................... 6,089,127
-----------
<CAPTION>
SHORT-TERM SECURITIES -- 5.3%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 5.3%
Cayman Island Time Deposit with State Street Bank & Trust Co.
2.75% due 12/02/96 (cost $335,000).................................... 335,000 335,000
-----------
TOTAL INVESTMENTS --
(cost $6,136,436) 102.0% 6,424,127
Liabilities in excess of other assets -- (2.0) (125,480)
------ -----------
NET ASSETS -- 100.0% $6,298,647
====== ============
</TABLE>

-----------------------------

+ Non-income producing securities

ADR -- American Depository Receipt

See Notes to Financial Statements

---------------------

43
<PAGE> 39

- ---------------------

SUNAMERICA SERIES TRUST
GROWTH-INCOME PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 93.9% SHARES VALUE
----------------------------------------------------------------------------------------------------

<S> <C> <C>
CONSUMER DISCRETIONARY -- 4.7%
Automotive -- 1.0%
Goodyear Tire & Rubber Co. .......................................... 67,400 $ 3,268,900

Retail -- 3.7%
CompUSA, Inc. ....................................................... 30,000 1,350,000
Federated Department Stores, Inc.+................................... 79,700 2,719,763
Kohl's Corp.+........................................................ 40,000 1,595,000
Kroger Co.+.......................................................... 40,000 1,845,000
Price/Costco, Inc.+.................................................. 94,700 2,201,775
Sears, Roebuck & Co. ................................................ 45,000 2,238,750
------------
15,219,188
------------
CONSUMER STAPLES -- 9.8%
Food, Beverage & Tobacco -- 4.2%
Campbell Soup Co. ................................................... 38,000 3,139,750
Philip Morris Cos., Inc. ............................................ 66,000 6,806,250
RJR Nabisco Holdings Corp. .......................................... 45,000 1,743,750
Wrigley, (Wm) Jr. Co. ............................................... 35,000 2,043,125

Household Products -- 5.6%
Colgate-Palmolive Co. ............................................... 35,000 3,241,875
Gillette Co. ........................................................ 72,700 5,361,625
Procter & Gamble Co. ................................................ 55,000 5,981,250
Sunbeam Corp. ....................................................... 65,000 1,795,625
United States Industries, Inc. ...................................... 55,200 1,628,400
------------
31,741,650
------------
ENERGY -- 9.2%
Energy Services -- 6.0%
Baker Hughes, Inc. .................................................. 44,000 1,611,500
Exxon Corp. ......................................................... 149,700 14,165,363
Schlumberger Ltd. ................................................... 36,000 3,744,000

Energy Sources -- 3.2%
Apache Corp. ........................................................ 55,000 2,000,625
BJ Services Co.+..................................................... 38,000 1,814,500
Enron Corp. ......................................................... 108,000 4,941,000
Transocean Offshore, Inc. ........................................... 28,000 1,687,000
------------
29,963,988
------------
FINANCE -- 17.5%
Banks -- 5.2%
Chase Manhattan Corp. ............................................... 39,000 3,685,500
First Chicago Corp. ................................................. 68,052 3,998,055
First Union Corp. ................................................... 66,900 5,109,487
NationsBank Corp. ................................................... 40,500 4,196,813

Financial Services -- 7.4%
American Express Co. ................................................ 70,000 3,657,500
Dean Witter, Discover & Co. ......................................... 50,000 3,418,750
First Data Corp. .................................................... 58,000 2,312,750
Household International, Inc. ....................................... 22,000 2,084,500
MBNA Corp. .......................................................... 80,000 3,230,000
</TABLE>

- ---------------------

44
<PAGE> 40

<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Merrill Lynch & Co., Inc. ........................................... 53,000 $ 4,253,250
Morgan Stanley Group, Inc. .......................................... 34,100 2,050,262
Travelers Group, Inc. ............................................... 69,400 3,123,000

Insurance -- 4.9%
American International Group, Inc. .................................. 42,000 4,830,000
General Reinsurance Group............................................ 17,900 3,020,625
ITT Hartford Group................................................... 28,000 1,914,500
NAC Reinsurance Corp. ............................................... 40,000 1,460,000
PMI Group, Inc. ..................................................... 48,300 2,801,400
Travelers Aetna Property Casualty Corp. ............................. 55,000 1,897,500
-------------
57,043,892
-------------
HEALTHCARE -- 13.4%
Drugs -- 6.9%
Amgen, Inc.+......................................................... 45,000 2,739,375
Biogen, Inc.+........................................................ 40,000 1,530,000
Merck & Co., Inc. ................................................... 100,900 8,374,700
Pfizer, Inc. ........................................................ 53,000 4,750,125
Schering-Plough Corp. ............................................... 72,500 5,165,625

Health Services -- 2.6%
Columbia/HCA Healthcare Corp. ....................................... 127,050 5,082,000
Oxford Health Plans, Inc.+........................................... 33,000 1,914,000
Pacificare Health Systems, Inc., Class A+............................ 19,000 1,501,000

Medical Products -- 3.9%
Abbott Laboratories.................................................. 88,000 4,906,000
Johnson & Johnson Co. ............................................... 94,000 4,993,750
Medtronic, Inc. ..................................................... 41,000 2,711,125
-------------
43,667,700
-------------
INDUSTRIAL & COMMERCIAL -- 12.4%
Aerospace & Military Technology -- 3.6%
AlliedSignal, Inc. .................................................. 90,000 6,592,500
General Dynamics Corp. .............................................. 33,000 2,433,750
United Technologies Corp. ........................................... 19,000 2,664,750

Business Services -- 0.9%
USA Waste Services, Inc.+............................................ 50,000 1,612,500
Whitman Corp. ....................................................... 60,200 1,384,600

Electrical Equipment -- 4.3%
General Electric Co. ................................................ 135,000 14,040,000

Machinery -- 1.5%
Applied Materials, Inc.+............................................. 45,000 1,715,625
Case Corp. .......................................................... 33,000 1,732,500
Centocor, Inc.+...................................................... 53,200 1,469,650

Multi-Industry -- 0.4%
Tyco International Ltd. ............................................. 22,900 1,253,775

Transportation -- 1.7%
Burlington Northern Santa Fe......................................... 20,000 1,797,500
Canadian Pacific Ltd. ............................................... 60,000 1,650,000
Union Pacific Corp. ................................................. 33,000 1,922,250
-------------
40,269,400
-------------
</TABLE>

---------------------

45
<PAGE> 41

<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 4.5%
Broadcasting & Media -- 2.5%
Gannett Co., Inc. ................................................... 20,000 $ 1,570,000
Lin Television Corp.+................................................ 34,000 1,364,250
New York Times Co., Class A.......................................... 40,000 1,495,000
Tele-Communications Liberty Media Group+............................. 64,650 1,616,250
Time Warner, Inc. ................................................... 55,000 2,241,250

Leisure & Tourism -- 2.0%
Brinker International, Inc.+......................................... 80,500 1,489,250
Carnival Corp. ...................................................... 62,200 1,967,075
Disney (Walt) Co. ................................................... 40,000 2,950,000
-------------
14,693,075
-------------
INFORMATION TECHNOLOGY -- 14.5%
Communication Equipment -- 0.8%
AirTouch Communications, Inc.+....................................... 103,000 2,639,375

Computers & Business Equipment -- 2.3%
3Com Corp.+.......................................................... 30,000 2,253,750
Compaq Computer Corp.+............................................... 35,400 2,805,450
Dell Computer Corp.+................................................. 25,000 2,540,625

Electronics -- 6.7%
ADT Ltd. ............................................................ 70,000 1,435,000
Altera Corp.+........................................................ 33,000 2,491,500
Intel Corp. ......................................................... 114,000 14,463,750
National Semiconductor Corp.+........................................ 75,000 1,837,500
Solectron Corp.+..................................................... 28,000 1,638,000

Software -- 4.7%
Cisco Systems, Inc.+................................................. 60,000 4,072,500
Microsoft Corp.+..................................................... 43,000 6,745,625
Netscape Communications Corp.+....................................... 30,000 1,676,250
Oracle Systems Corp.+................................................ 55,000 2,695,000
-------------
47,294,325
-------------
MATERIALS -- 3.7%
Chemicals -- 2.1%
Monsanto Co. ........................................................ 120,000 4,770,000
Morton International, Inc. .......................................... 54,000 2,180,250

Forest Products -- 1.0%
Crown, Cork & Seal, Inc. ............................................ 32,800 1,738,400
Louisiana Pacific Corp. ............................................. 60,000 1,357,500

Metals & Minerals -- 0.6%
Reynolds Metals Co. ................................................. 33,000 1,963,500
-------------
12,009,650
-------------
REAL ESTATE -- 0.6%
Real Estate Investment Trusts -- 0.6%
Starwood Lodging Trust............................................... 38,000 1,814,500
-------------
UTILITIES -- 3.6%
Electric Utilities -- 2.1%
FPL Group, Inc. ..................................................... 145,000 6,688,125
</TABLE>

- ---------------------

46
<PAGE> 42

<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Gas & Pipeline Utilities -- 1.5%
CINergy Corp. ....................................................... 150,000 $ 5,025,000
-------------
11,713,125
-------------
TOTAL INVESTMENT SECURITIES (cost $238,355,190)...................... 305,430,493
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 5.9% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 5.6%
Cayman Island Time Deposit with State Street Bank & Trust Co.
4.88% due 12/02/96@................................................ $18,251,000 18,251,000
-------------
U.S. GOVERNMENT -- 0.3%
United States Treasury Bills 4.88% due 12/12/96@..................... 265,000 262,899
United States Treasury Bills 5.01% due 12/12/96@..................... 240,000 238,098
United States Treasury Bills 5.05% due 12/12/96@..................... 550,000 549,190
-------------
TOTAL SHORT-TERM SECURITIES (cost $19,304,389)....................... 19,301,187
-------------
TOTAL INVESTMENTS --
(cost $257,659,579) 99.8% 324,731,680
Other assets less liabilities -- 0.2 731,645
------ -------------
NET ASSETS -- 100.0% $325,463,325
====== ==============
</TABLE>

-----------------------------

+ Non-income producing securities

@ The security or a portion thereof represents collateral for the
following open futures contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
- -------------------------------------------------------------------------------------------------------------------------------
NUMBER OF EXPIRATION VALUE AT VALUE AS OF UNREALIZED
CONTRACTS DESCRIPTION DATE TRADE DATE NOVEMBER 30, 1996 APPRECIATION
- -------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
45 Long Standard & Poor's 500 Index..... December 1996 $16,098,244 $17,060,625 $962,381
===========
</TABLE>

See Notes to Financial Statements

---------------------

47
<PAGE> 43

- ---------------------

SUNAMERICA SERIES TRUST
FEDERATED VALUE PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 91.1% SHARES VALUE
----------------------------------------------------------------------------------------------------

<S> <C> <C>
CONSUMER DISCRETIONARY -- 7.3%
Automotive -- 2.7%
Chrysler Corp. .......................................................... 1,100 $ 39,050
General Motors Corp. .................................................... 2,000 115,250
General Motors Corp., Class H............................................ 3,400 185,300

Retail -- 4.6%
Dayton Hudson Corp. ..................................................... 4,500 174,937
Dillard Department Stores, Inc., Class A ................................ 3,700 113,313
Sears, Roebuck & Co. .................................................... 2,400 119,400
Wal-Mart Stores, Inc. ................................................... 6,300 160,650
-------------
907,900
-------------
CONSUMER STAPLES -- 11.5%
Food, Beverage & Tobacco -- 5.3%
CPC International, Inc. ................................................. 2,400 199,800
Heinz (H.J.) Co. ........................................................ 3,900 147,713
IBP, Inc. ............................................................... 5,500 136,125
Philip Morris Cos., Inc. ................................................ 1,700 175,312

Household Products -- 6.2%
Avon Products, Inc. ..................................................... 2,000 111,500
Kimberly-Clark Corp. .................................................... 2,000 195,500
Rubbermaid, Inc. ........................................................ 7,500 180,000
Unilever NV ADR.......................................................... 1,700 294,312
-------------
1,440,262
-------------
ENERGY -- 10.0%
Energy Services -- 7.4%
Chevron Corp. ........................................................... 1,400 93,800
Exxon Corp. ............................................................. 1,200 113,550
Mobil Corp. ............................................................. 2,000 242,000
Royal Dutch Petroleum Co. ADR............................................ 600 101,925
Texaco, Inc. ............................................................ 1,100 109,037
Union Pacific Resources Group, Inc. ..................................... 5,200 155,350
Occidental Petroleum Corp. .............................................. 4,500 108,000

Energy Sources -- 2.6%
Columbia Gas Systems, Inc. .............................................. 2,500 161,563
Enron Corp. ............................................................. 3,500 160,125
-------------
1,245,350
-------------
FINANCE -- 14.4%
Banks -- 3.5%
Chase Manhattan Corp. ................................................... 1,300 122,850
Citicorp................................................................. 1,000 109,250
National City Corp. ..................................................... 2,000 92,750
Republic New York Corp. ................................................. 1,300 114,725
</TABLE>

- ---------------------

48
<PAGE> 44

<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services -- 5.4%
Dean Witter, Discover & Co. ............................................. 1,300 $ 88,888
Federal Home Loan Mortgage Corp. ........................................ 900 102,825
Federal National Mortgage Association.................................... 5,200 214,500
H&R Block, Inc. ......................................................... 5,500 160,875
Travelers Group, Inc. ................................................... 2,267 102,000

Insurance -- 5.5%
Aflac, Inc. ............................................................. 4,000 167,000
Allstate Corp. .......................................................... 2,200 132,550
CIGNA Corp. ............................................................. 800 113,100
Loews Corp. ............................................................. 900 83,475
Marsh & McLennan Cos. ................................................... 1,700 192,737
------------
1,797,525
------------
HEALTHCARE -- 11.3%
Drugs -- 3.9%
American Home Products Corp. ............................................ 2,400 154,200
Bristol-Myers Squibb Co. ................................................ 2,000 227,500
Merck & Co., Inc. ....................................................... 1,200 99,600

Health Services -- 2.3%
Columbia/HCA Healthcare Corp. ........................................... 3,600 144,000
Healthsource, Inc.+...................................................... 5,200 58,500
United Healthcare Corp. ................................................. 2,000 86,250

Medical Products -- 5.1%
Abbott Laboratories...................................................... 3,500 195,125
Bausch & Lomb, Inc. ..................................................... 2,600 96,525
Becton Dickinson & Co. .................................................. 2,600 109,200
Biomet, Inc.+............................................................ 6,500 107,250
Tambrands, Inc. ......................................................... 3,000 128,250
------------
1,406,400
------------
INDUSTRIAL & COMMERCIAL -- 8.9%
Aerospace & Military Technology -- 2.3%
Lockheed Martin Corp. ................................................... 739 66,972
Textron, Inc. ........................................................... 2,100 200,287
Martin Marietta Materials, Inc. ......................................... 759 17,837

Business Services -- 1.7%
Browning-Ferris Industries, Inc. ........................................ 7,900 212,312

Electrical Equipment -- 1.0%
General Electric Co. .................................................... 1,200 124,800

Machinery -- 1.2%
Ingersoll-Rand Co. ...................................................... 3,200 148,800

Multi-Industry -- 1.0%
Rockwell International Corp. ............................................ 2,000 128,500

Transportation -- 1.7%
AMR Corp.+............................................................... 1,300 118,625
Union Pacific Corp. ..................................................... 1,500 87,375
------------
1,105,508
------------
INFORMATION & ENTERTAINMENT -- 1.2%
Broadcasting & Media -- 0.7%
Gannett Co., Inc. ....................................................... 1,100 86,350

Entertainment Products -- 0.2%
Mattel, Inc. ............................................................ 700 21,613
</TABLE>

---------------------

49
<PAGE> 45

<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT (continued)
Leisure & Tourism -- 0.3%
Disney (Walt) Co. ....................................................... 600 $ 44,250
------------
152,213
------------
INFORMATION TECHNOLOGY -- 8.7%
Computers & Business Equipment -- 3.6%
Automatic Data Processing, Inc. ......................................... 1,400 60,025
Electronic Data Systems Corp. ........................................... 3,800 183,825
Hewlett-Packard Co. ..................................................... 1,900 102,363
International Business Machines Corp. ................................... 600 95,625

Electronics -- 2.5%
Intel Corp. ............................................................. 1,400 177,625
Solectron Corp. ......................................................... 2,300 134,550

Software -- 1.7%
Computer Associates International, Inc. ................................. 1,700 111,775
Oracle Systems Corp.+.................................................... 2,000 98,000

Telecommunications -- 0.9%
Lucent Technologies, Inc. ............................................... 2,300 117,875
------------
1,081,663
------------
MATERIALS -- 6.7%
Chemicals -- 5.2%
Betzdearborn, Inc. ...................................................... 1,600 92,600
Eastman Kodak Co. ....................................................... 900 72,900
Monsanto Co. ............................................................ 3,200 127,200
Morton International, Inc. .............................................. 4,800 193,800
Sigma-Aldrich Corp. ..................................................... 500 31,250
Great Lakes Chemical Corp. .............................................. 2,300 123,337

Forest Products -- 1.5%
Consolidated Papers, Inc. ............................................... 2,100 104,213
International Paper Co. ................................................. 2,000 85,000
------------
830,300
------------
UTILITIES -- 11.1%
Electric Utilities -- 1.6%
FPL Group, Inc. ......................................................... 2,100 96,863
Southern Co. ............................................................ 4,500 100,125

Gas & Pipeline Utilities -- 3.3%
Pacific Gas & Electric Co. .............................................. 7,900 190,587
Unocal Corp. ............................................................ 2,400 97,800
USX Marathon Group....................................................... 5,500 125,813

Telephone -- 6.2%
AT&T Corp. .............................................................. 2,500 98,125
GTE Corp. ............................................................... 3,500 157,062
MCI Communications Corp. ................................................ 9,100 277,550
Pacific Telesis Group.................................................... 6,500 240,500
------------
1,384,425
------------
TOTAL INVESTMENT SECURITIES (cost $10,155,437)........................... 11,351,546
------------
</TABLE>

- ---------------------

50
<PAGE> 46
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 7.7% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>

TIME DEPOSIT -- 7.7%
Cayman Island Time Deposit with State Street Bank & Trust Co.
2.75% due 12/02/96 (cost $964,000)..................................... $964,000 $ 964,000
------------
TOTAL INVESTMENTS --
(cost $11,119,437) 98.8% 12,315,546
Other assets less liabilities -- 1.2 143,982
------ ------------
NET ASSETS -- 100.0% $12,459,528
====== =============
</TABLE>

-----------------------------

+ Non-income producing securities

ADR -- American Depository Receipt

See Notes to Financial Statements

---------------------

51
<PAGE> 47

- ---------------------

SUNAMERICA SERIES TRUST
VENTURE VALUE PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 90.9% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>

CONSUMER DISCRETIONARY -- 3.4%
Automotive -- 1.7%
General Motors Corp. ................................................ 149,200 $ 8,597,650

Housing -- 0.2%
Masco Corp. ......................................................... 25,100 916,150

Retail -- 1.5%
Federated Department Stores, Inc.+................................... 126,800 4,327,050
Harcourt General, Inc. .............................................. 61,500 3,359,437
------------
17,200,287
------------
CONSUMER STAPLES -- 8.1%
Food, Beverage & Tobacco -- 7.7%
American Brands, Inc. ............................................... 4,200 200,550
Archer-Daniels-Midland Co. .......................................... 240,905 5,299,910
Coca-Cola Co. ....................................................... 105,600 5,398,800
Guinness PLC......................................................... 313,000 2,341,712
McDonald's Corp. .................................................... 196,200 9,172,350
Nestle SA ADR........................................................ 60,300 3,275,846
Philip Morris Cos., Inc. ............................................ 110,700 11,415,937
Tyson Foods, Inc., Class A .......................................... 74,400 2,436,600

Household Products -- 0.4%
Kimberly-Clark Corp. ................................................ 20,900 2,042,975
Maytag Corp. ........................................................ 4,200 80,325
------------
41,665,005
------------
ENERGY -- 8.5%
Energy Services -- 6.8%
Amerada Hess Corp. .................................................. 1,800 105,975
Amoco Corp. ......................................................... 1,400 108,675
Burlington Resources, Inc. .......................................... 228,400 12,105,200
Chevron Corp. ....................................................... 7,600 509,200
Cooper Cameron, Corp.+............................................... 11,000 723,250
Energy Ventures, Inc.+............................................... 76,800 3,772,800
Exxon Corp. ......................................................... 11,800 1,116,575
Halliburton Co. ..................................................... 157,200 9,471,300
Mobil Corp. ......................................................... 1,100 133,100
Schlumberger Ltd. ................................................... 64,400 6,697,600
Sonat, Inc. ......................................................... 2,200 113,850

Energy Sources -- 1.7%
Atlantic Richfield Co. .............................................. 2,400 333,900
Edison International................................................. 700 13,913
Noble Affiliates, Inc. .............................................. 135,057 6,364,562
Union Pacific Resources Group, Inc. ................................. 75,721 2,262,165
------------
43,832,065
------------
FINANCE -- 40.7%
Banks -- 9.4%
Banc One Corp. ...................................................... 118,980 5,666,422
BankAmerica Corp. ................................................... 86,300 8,888,900
First Bank Systems, Inc. ............................................ 127,100 9,262,412
</TABLE>

- ---------------------

52
<PAGE> 48

<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Banks (continued)
First Union Corp. ................................................... 2,000 $ 152,750
Golden West Financial Corp. ......................................... 70,600 4,765,500
State Street Boston Corp. ........................................... 114,000 7,709,250
Wells Fargo & Co. ................................................... 41,800 11,897,325

Financial Services -- 16.7%
American Express Co. ................................................ 308,900 16,140,025
Barnett Banks, Inc. ................................................. 89,500 3,938,000
Citicorp. ........................................................... 113,075 12,353,444
Dean Witter, Discover & Co. ......................................... 121,000 8,273,375
Donaldson Lufkin & Jenrette, Inc. ................................... 116,500 4,150,313
Federal Home Loan Mortgage Corp. .................................... 82,100 9,379,925
Morgan (J.P.) & Co., Inc. ........................................... 79,100 7,465,063
Morgan Stanley Group, Inc. .......................................... 176,300 10,600,037
Travelers Group, Inc. ............................................... 313,533 14,109,000

Insurance -- 13.8%
20th Century Industries+............................................. 141,700 2,125,500
Allstate Corp. ...................................................... 198,395 11,953,299
American International Group, Inc. .................................. 40,200 4,623,000
Berkley (W.R.) Corp. ................................................ 129,300 6,788,250
Chubb Corp. ......................................................... 175,300 9,510,025
Equitable Cos., Inc. ................................................ 331,700 8,209,575
General Reinsurance Corp............................................. 71,600 12,082,500
NAC Reinsurance Corp. ............................................... 34,400 1,255,600
Progressive Corp., Ohio.............................................. 74,600 5,203,350
Transatlantic Holdings, Inc. ........................................ 86,100 6,855,712
UNUM Corp. .......................................................... 39,200 2,788,100

Investment Companies -- 0.8%
Morgan Stanley Asia-Pacific Fund..................................... 375,367 3,988,274
-------------
210,134,926
-------------
HEALTHCARE -- 3.1%
Drugs -- 2.5%
Bristol-Myers Squibb Co. ............................................ 900 102,375
Lilly (Eli) & Co. ................................................... 43,900 3,358,350
Merck & Co., Inc. ................................................... 15,300 1,269,900
Pfizer, Inc. ........................................................ 89,500 8,021,437

Medical Products -- 0.6%
American Home Products Corp. ........................................ 2,200 141,350
Johnson & Johnson Co. ............................................... 54,100 2,874,063
-------------
15,767,475
-------------
INDUSTRIAL & COMMERCIAL -- 7.2%
Aerospace & Military Technology -- 2.5%
Boeing Co. .......................................................... 83,600 8,307,750
General Motors Corp., Class H........................................ 84,900 4,627,050

Business Services -- 0.0%
ACNielsen Corp.+..................................................... 133 2,311
Cognizant Corp.+..................................................... 400 13,800
Dun & Bradstreet Corp. .............................................. 400 9,050
WMX Technologies, Inc. .............................................. 1,400 50,400

Electrical Equipment -- 0.1%
General Electric Co. ................................................ 5,800 603,200
</TABLE>

---------------------

53
<PAGE> 49

<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Machinery -- 1.0%
Applied Materials, Inc.+............................................. 92,200 $ 3,515,125
Smith International, Inc.+........................................... 41,200 1,684,050
Transportation -- 3.6%
Burlington Northern Santa Fe......................................... 108,300 9,733,462
Illinois Central Corp. .............................................. 58,450 1,979,994
Union Pacific Corp. ................................................. 117,600 6,850,200
-------------
37,376,392
-------------
INFORMATION & ENTERTAINMENT -- 3.7%
Broadcasting & Media -- 3.0%
Gannett Co., Inc. ................................................... 90,900 7,135,650
News Corp., Ltd. ADR................................................. 261,200 4,505,700
Tribune Co. ......................................................... 43,100 3,728,150
Washington Post Co., Class B......................................... 100 34,800

Leisure & Tourism -- 0.7%
Disney (Walt) Co. ................................................... 52,200 3,849,750
-------------
19,254,050
-------------
INFORMATION TECHNOLOGY -- 10.3%
Communication Equipment -- 0.7%
AirTouch Communications, Inc.+....................................... 141,900 3,636,188
SBC Communications, Inc. ............................................ 1,200 63,150

Computers & Business Equipment -- 5.8%
Hewlett-Packard Co. ................................................. 185,000 9,966,875
International Business Machines Corp. ............................... 91,000 14,503,125
Komag, Inc.+......................................................... 170,700 5,505,075

Electronics -- 3.6%
Intel Corp. ......................................................... 116,400 14,768,250
Novellus Systems, Inc.+.............................................. 63,900 3,674,250

Telecommunications -- 0.2%
Globalstar Telecommunications Ltd.+.................................. 9,500 655,500
Lucent Technologies, Inc. ........................................... 4,245 217,556
-------------
52,989,969
-------------
MATERIALS -- 3.7%
Chemicals -- 1.6%
Dow Chemical Co. .................................................... 600 50,250
Eastman Kodak Co. ................................................... 104,400 8,456,400

Forest Products -- 1.0%
Fort Howard Corp.+................................................... 123,900 3,500,175
International Paper Co. ............................................. 1,300 55,250
Jefferson Smurfit Corp.+............................................. 104,900 1,416,150
Union Camp Corp. .................................................... 2,000 98,250

Metals & Minerals -- 1.1%
Martin Marietta Materials, Inc. ..................................... 235,000 5,522,500
-------------
19,098,975
-------------
REAL ESTATE -- 2.1%
Real Estate Investment Trusts -- 2.1%
Crescent Real Estate Equities........................................ 96,100 4,216,387
Federal Realty Investment Trust...................................... 45,600 1,185,600
Kimco Realty Corp. .................................................. 9,650 281,056
Mid-Atlantic Realty Trust............................................ 27,800 291,900
Saul Centers, Inc. .................................................. 28,900 440,725
</TABLE>

- ---------------------

54
<PAGE> 50

<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE (continued)
Real Estate Investment Trusts (continued)
Simon DeBartolo Group, Inc. ......................................... 400 $ 10,950
United Dominion Realty Trust, Inc. .................................. 50,300 741,925
Vornado Realty Trust................................................. 71,800 3,239,975
Weingarten Realty Investors.......................................... 14,500 567,313
-------------
10,975,831
-------------
UTILITIES -- 0.1%
Electric Utilities -- 0.0%
Carolina Power & Light Co. .......................................... 900 32,962
Duke Power Co. ...................................................... 1,400 64,925
Enova Corp. ......................................................... 500 11,188
New England Electric Systems......................................... 500 17,125
Southern Co. ........................................................ 1,600 35,600
Wisconsin Energy Corp. .............................................. 800 21,400

Telephone -- 0.1%
AT&T Corp. .......................................................... 13,900 545,575
-------------
728,775
-------------
TOTAL COMMON STOCK (cost $378,127,522)............................... 469,023,750
-------------
<CAPTION>
PREFERRED STOCK -- 0.3%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 0.1%
Banks -- 0.1%
Banc One Corp., Series C............................................. 7,200 654,300
-------------
INFORMATION TECHNOLOGY -- 0.2%
Communication Equipment -- 0.2%
AirTouch Communications, Inc. Class B convertible 6.00%.............. 19,580 560,478
AirTouch Communications, Inc. Class C convertible 4.25%.............. 12,597 579,462
-------------
1,139,940
-------------
TOTAL PREFERRED STOCK (cost $1,570,968).............................. 1,794,240
-------------
TOTAL INVESTMENT SECURITIES (cost $379,698,490)...................... 470,817,990
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 8.8% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FEDERAL AGENCY OBLIGATIONS -- 8.8%
Federal Home Loan Bank Notes 5.20% due 12/05/96...................... $13,040,000 13,032,466
Federal Home Loan Mortgage Discount Notes 5.22% due 12/09/96......... 11,200,000 11,187,008
Federal Home Loan Mortgage Discount Notes 5.33% due 12/02/96......... 6,565,000 6,564,028
Federal National Mortgage Association Discount Notes 5.30% due
12/06/96........................................................... 14,890,000 14,879,039
-------------
TOTAL SHORT-TERM SECURITIES (cost $45,662,541)....................... 45,662,541
-------------
TOTAL INVESTMENTS --
(cost $425,361,031) 100.0% 516,480,531
Liabilities in excess of other assets -- (0.0) (67,160)
------ -------------
NET ASSETS -- 100.0% $516,413,371
====== =============
</TABLE>

-----------------------------

+ Non-income producing securities

ADR -- American Depository Receipt

See Notes to Financial Statements

---------------------

55
<PAGE> 51

- ---------------------

SUNAMERICA SERIES TRUST
ALLIANCE GROWTH PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 94.6% SHARES VALUE
-----------------------------------------------------------------------------------------------------

<S> <C> <C>
CONSUMER DISCRETIONARY -- 6.4%
Apparel & Textiles -- 1.4%
NIKE, Inc., Class B..................................................... 93,100 $ 5,295,063

Retail -- 5.0%
Dayton Hudson Corp. .................................................... 96,700 3,759,212
Home Depot, Inc. ....................................................... 235,400 12,270,225
Wal-Mart Stores, Inc. .................................................. 118,700 3,026,850
-------------
24,351,350
-------------
CONSUMER STAPLES -- 14.5%
Food, Beverage & Tobacco -- 13.6%
Campbell Soup Co. ...................................................... 102,300 8,452,538
McDonald's Corp. ....................................................... 151,500 7,082,625
PepsiCo, Inc. .......................................................... 353,100 10,548,862
Philip Morris Cos., Inc. ............................................... 215,800 22,254,375
Wrigley, (Wm) Jr. Co. .................................................. 61,400 3,584,225

Household Products -- 0.9%
Colgate-Palmolive Co. .................................................. 35,400 3,278,925
-------------
55,201,550
-------------
FINANCE -- 18.3%
Banks -- 4.8%
Chase Manhattan Corp. .................................................. 41,194 3,892,833
First Chicago Corp. .................................................... 61,600 3,619,000
First Union Corp. ...................................................... 52,800 4,032,600
Norwest Corp. .......................................................... 144,120 6,737,610
Wells Fargo & Co. ...................................................... 1 285

Financial Services -- 12.4%
Federal National Mortgage Association................................... 400,300 16,512,375
First Data Corp. ....................................................... 58,800 2,344,650
Household International, Inc. .......................................... 66,200 6,272,450
MBNA Corp. ............................................................. 297,700 12,019,637
Merrill Lynch & Co., Inc. .............................................. 84,300 6,765,075
Travelers Group, Inc. .................................................. 69,200 3,114,000

Insurance -- 1.1%
Allstate Corp. ......................................................... 63,400 3,819,850
MGIC Investment Corp. .................................................. 6,100 456,738
-------------
69,587,103
-------------
HEALTHCARE -- 13.8%
Drugs -- 7.9%
Amgen, Inc.+............................................................ 113,500 6,909,312
Merck & Co., Inc. ...................................................... 204,900 17,006,700
Pfizer, Inc. ........................................................... 68,500 6,139,313

Health Services -- 2.1%
Columbia/HCA Healthcare Corp. .......................................... 126,250 5,050,000
Pacificare Health Systems, Inc., Class A+............................... 19,700 1,556,300
Pacificare Health Systems, Inc., Class B+............................... 14,400 1,195,200
</TABLE>

- ---------------------

56
<PAGE> 52

<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE (continued)
Medical Products -- 3.8%
Abbott Laboratories..................................................... 100,200 $ 5,586,150
Johnson & Johnson Co. .................................................. 64,800 3,442,500
Medtronic, Inc. ........................................................ 84,300 5,574,337
-------------
52,459,812
-------------
INDUSTRIAL & COMMERCIAL -- 6.4%
Aerospace & Military Technology -- 2.2%
AlliedSignal, Inc. ..................................................... 55,100 4,036,075
Boeing Co. ............................................................. 33,300 3,309,188
United Technologies Corp. .............................................. 6,900 967,725

Electrical Equipment -- 0.9%
Honeywell, Inc. ........................................................ 50,200 3,444,975

Machinery -- 2.2%
Applied Materials, Inc.+................................................ 227,900 8,688,687

Transportation -- 1.1%
Burlington Northern Santa Fe............................................ 45,900 4,125,263
-------------
24,571,913
-------------
INFORMATION & ENTERTAINMENT -- 7.3%
Leisure & Tourism -- 7.3%
Disney (Walt) Co. ...................................................... 201,512 14,861,510
Northwest Airlines Corp., Class A+...................................... 186,200 7,517,825
UAL Corp. .............................................................. 97,700 5,617,750
-------------
27,997,085
-------------
INFORMATION TECHNOLOGY -- 26.3%
Communication Equipment -- 0.7%
Ascend Communications, Inc.+............................................ 38,700 2,752,538

Computers & Business Equipment -- 8.4%
3Com Corp.+............................................................. 47,400 3,560,925
Cascade Communications Co.+............................................. 40,000 2,765,000
Compaq Computer Corp.+.................................................. 119,300 9,454,525
Dell Computer Corp.+.................................................... 29,500 2,997,937
Electronic Data Systems Corp. .......................................... 77,600 3,753,900
Hewlett-Packard Co. .................................................... 176,200 9,492,775

Electronics -- 4.7%
Altera Corp.+........................................................... 27,000 2,038,500
Intel Corp. ............................................................ 92,500 11,735,937
Motorola, Inc. ......................................................... 74,000 4,097,750

Software -- 10.6%
Cisco Systems, Inc.+.................................................... 252,200 17,118,075
Microsoft Corp.+........................................................ 73,700 11,561,687
Netscape Communications Corp.+.......................................... 62,700 3,503,363
Oracle Systems Corp.+................................................... 169,700 8,315,300

Telecommunications -- 1.9%
Lucent Technologies, Inc. .............................................. 87,200 4,469,000
MFS Communications, Inc.+............................................... 56,000 2,702,000
-------------
100,319,212
-------------
MATERIALS -- 0.7%
Chemicals -- 0.7%
Monsanto Co. ........................................................... 66,400 2,639,400
-------------
</TABLE>

---------------------

57
<PAGE> 53

<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE -- 0.9%
Real Estate Companies -- 0.9%
Green Tree Financial Corp. ............................................. 86,000 $ 3,601,250
-------------
TOTAL COMMON STOCK (cost $309,095,983).................................. 360,728,675
-------------
<CAPTION>
WARRANTS -- 4.8%+
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY -- 4.8%
Electronics -- 4.8%
Intel Corp. 3/14/98 (cost $3,321,125)................................... 211,000 18,515,250
-------------
TOTAL INVESTMENT SECURITIES (cost $312,417,108)......................... 379,243,925
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 0.3% AMOUNT
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 0.3%
Cayman Island Time Deposit with State Street Bank & Trust Co.
2.75% due 12/02/96@................................................... $ 971,000 971,000
-------------
U.S. GOVERNMENT -- 0.0%
United States Treasury Bills 5.14% due 12/19/96@........................ 160,000 159,589
-------------
TOTAL SHORT-TERM SECURITIES (cost $1,130,589)........................... 1,130,589
-------------
TOTAL INVESTMENTS --
(cost $313,547,697) 99.7% 380,374,514
Other assets less liabilities -- 0.3 992,159
------ -------------
NET ASSETS -- 100.0% $381,366,673
====== ==============
</TABLE>

-----------------------------

+ Non-income producing securities

@ The security or a portion thereof represents collateral for the
following open futures contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
-----------------------------------------------------------------------------------------------------------
VALUE AT
NUMBER OF EXPIRATION TRADE VALUE AS OF UNREALIZED
CONTRACTS DESCRIPTION DATE DATE NOVEMBER 30, 1996 APPRECIATION
-----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
12 Long Standard & Poor's 500 Index.... December 1996 $4,152,000 $ 4,549,500 $397,500
===========
</TABLE>

See Notes to Financial Statements

- ---------------------

58
<PAGE> 54

- ---------------------

SUNAMERICA SERIES TRUST
GROWTH/PHOENIX INVESTMENT
COUNSEL PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 87.7% SHARES VALUE
----------------------------------------------------------------------------------------------------

<S> <C> <C>
CONSUMER DISCRETIONARY -- 5.9%
Apparel & Textiles -- 0.2%
Footstar, Inc.+....................................................... 12,955 $ 265,578

Automotive -- 0.7%
General Motors Corp. ................................................. 25,000 1,362,500

Retail -- 5.0%
American Stores Co. .................................................. 75,000 2,990,625
CVS Corp. ............................................................ 45,000 1,850,625
Home Depot, Inc. ..................................................... 50,000 2,606,250
Price/Costco, Inc.+................................................... 80,000 1,860,000
------------
10,935,578
------------
CONSUMER STAPLES -- 7.4%
Food, Beverage & Tobacco -- 3.2%
PepsiCo, Inc. ........................................................ 43,900 1,311,512
Ralston Purina Co. ................................................... 25,000 1,912,500
Seagram Co., Ltd. .................................................... 70,000 2,861,250

Household Products -- 4.2%
Colgate-Palmolive Co. ................................................ 15,000 1,389,375
Kimberly-Clark Corp. ................................................. 30,000 2,932,500
Unilever NV........................................................... 20,000 3,462,500
------------
13,869,637
------------
ENERGY -- 13.1%
Energy Services -- 8.5%
BJ Services Co.+...................................................... 60,000 2,865,000
Burlington Resources, Inc. ........................................... 30,000 1,590,000
Diamond Offshore Drilling, Inc.+...................................... 45,000 2,868,750
Halliburton Co. ...................................................... 25,000 1,506,250
Nabors Industries, Inc. .............................................. 225,000 4,359,375
Schlumberger Ltd. .................................................... 25,000 2,600,000

Energy Sources -- 4.6%
Burlington Northern Santa Fe.......................................... 24,500 2,201,937
Elf Aquitaine ADR..................................................... 50,000 2,193,750
ENSCO International, Inc.+............................................ 30,000 1,316,250
Louisiana Land & Exploration Co. ..................................... 50,000 2,987,500
------------
24,488,812
------------
FINANCE -- 14.3%
Banks -- 1.5%
Citicorp.............................................................. 25,000 2,731,250

Financial Services -- 6.5%
American Express Co. ................................................. 40,000 2,090,000
Bankers Trust New York Corp. ......................................... 22,000 1,914,000
Equifax, Inc. ........................................................ 105,000 3,438,750
Federal National Mortgage Association................................. 50,000 2,062,500
Travelers Group, Inc. ................................................ 60,000 2,700,000
</TABLE>

---------------------

59
<PAGE> 55

<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance -- 6.3%
ACE Ltd. ............................................................. 35,000 $ 2,025,625
Allstate Corp. ....................................................... 30,000 1,807,500
Everest Reinsurance Holdings, Inc. ................................... 70,000 1,968,750
General Reinsurance Group............................................. 12,000 2,025,000
Marsh & McLennan Cos. ................................................ 15,000 1,700,625
TIG Holdings, Inc. ................................................... 70,000 2,135,000
-------------
26,599,000
-------------
HEALTHCARE -- 13.3%
Drugs -- 6.3%
American Home Products Corp. ......................................... 30,000 1,927,500
Amgen, Inc.+.......................................................... 30,000 1,826,250
Bristol-Myers Squibb Co. ............................................. 25,000 2,843,750
Lilly (Eli) & Co. .................................................... 40,000 3,060,000
Warner-Lambert Co. ................................................... 30,000 2,145,000

Health Services -- 1.0%
Columbia/HCA Healthcare Corp. ........................................ 45,000 1,800,000

Medical Products -- 6.0%
Allegiance Corp. ..................................................... 12,000 271,500
Baxter International, Inc. ........................................... 60,000 2,550,000
Johnson & Johnson Co. ................................................ 65,000 3,453,125
Mallinckrodt, Inc. ................................................... 40,000 1,760,000
Medtronic, Inc. ...................................................... 25,000 1,653,125
Pharmacia & Upjohn, Inc. ............................................. 40,000 1,545,000
-------------
24,835,250
-------------
INDUSTRIAL & COMMERCIAL -- 13.6%
Aerospace & Military Technology -- 5.5%
Boeing Co. ........................................................... 20,400 2,027,250
Litton Industries, Inc.+.............................................. 45,000 2,103,750
Lockheed Martin Corp. ................................................ 40,000 3,625,000
Raytheon Co. ......................................................... 50,000 2,556,250

Business Services -- 5.5%
Cognizant Corp.+...................................................... 75,000 2,587,500
CUC International, Inc.+.............................................. 75,000 1,978,125
Pittston Brink's Group................................................ 15,000 382,500
Primark Corp.+........................................................ 50,000 1,312,500
WMX Technologies, Inc. ............................................... 110,000 3,960,000

Machinery -- 1.0%
Deere & Co. .......................................................... 40,000 1,785,000

Transportation -- 1.6%
Tidewater, Inc. ...................................................... 68,000 2,975,000
-------------
25,292,875
-------------
INFORMATION & ENTERTAINMENT -- 2.8%
Broadcasting & Media -- 1.4%
Grupo Televisa SA ADR................................................. 35,000 953,750
Time Warner, Inc. .................................................... 42,000 1,711,500

Leisure & Tourism -- 1.4%
Carnival Corp. ....................................................... 80,000 2,530,000
-------------
5,195,250
-------------
INFORMATION TECHNOLOGY -- 10.3%
Computers & Business Equipment -- 0.9%
Xerox Corp. .......................................................... 32,000 1,572,000
</TABLE>

- ---------------------

60
<PAGE> 56
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Electronics -- 3.0%
ADT Ltd.+............................................................. 90,000 $ 1,845,000
Intel Corp. .......................................................... 15,000 1,903,125
Perkin-Elmer Corp. ................................................... 30,000 1,848,750

Software -- 5.6%
Cisco Systems, Inc.+.................................................. 50,000 3,393,750
Informix Corp.+....................................................... 50,000 1,187,500
Microsoft Corp.+...................................................... 12,000 1,882,500
Oracle Systems Corp.+................................................. 40,000 1,960,000
Sterling Software, Inc.+.............................................. 25,000 828,125
VeriFone, Inc.+....................................................... 37,000 1,248,750

Telecommunications -- 0.8%
Lucent Technologies, Inc. ............................................ 30,000 1,537,500
-------------
19,207,000
-------------
MATERIALS -- 6.4%
Chemicals -- 4.9%
IMC Global, Inc. ..................................................... 80,000 2,890,000
Monsanto Co. ......................................................... 70,000 2,782,500
Raychem Corp. ........................................................ 40,000 3,410,000

Metals & Minerals -- 1.5%
Potash Corp. of Saskatchewan, Inc. ................................... 36,500 2,751,188
-------------
11,833,688
-------------
UTILITIES -- 0.6%
Gas & Pipeline Utilities -- 0.6%
Transocean Offshore, Inc. ............................................ 20,000 1,205,000
-------------
TOTAL INVESTMENT SECURITIES (cost $136,132,691)....................... 163,462,090
-------------

<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 12.3% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 10.6%
Abbott Laboratories, Inc. 5.25% due 12/04/96.......................... $2,390,000 2,388,954
Ameritech Capital Funding Corp. 5.25% due 12/23/96.................... 1,500,000 1,495,187
Assets Securitization Cooperative 5.27% due 12/05/96.................. 4,190,000 4,187,547
Ciesco L.P. 5.25% due 12/02/96........................................ 795,000 794,884
Ciesco L.P. 5.35% due 12/02/96........................................ 885,000 884,869
Donnelley(R.R.) & Sons Co. 5.27% due 12/09/96......................... 1,830,000 1,827,857
General Electric Capital Corp. 5.23% due 12/13/96..................... 2,905,000 2,899,936
Kimberly-Clark Corp. 5.23% due 12/11/96............................... 600,000 599,128
Receivables Capital Corp. 5.29% due 12/02/96.......................... 1,147,000 1,146,831
Vermont American Corp. 5.25% due 12/20/96............................. 3,590,000 3,580,053
-------------
19,805,246
-------------
FEDERAL AGENCY OBLIGATIONS -- 1.3%
Federal Home Loan Bank Discount Notes 5.85% due 12/02/96.............. 445,000 444,928
Federal Home Loan Mortgage Discount Notes 5.70% due 12/02/96.......... 205,000 204,967
Federal National Mortgage Association 5.23% due 12/19/96.............. 1,690,000 1,685,585
-------------
2,335,480
-------------
</TABLE>

---------------------

61
<PAGE> 57
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT -- 0.4%
United States Treasury Bills 4.86% due 2/06/97........................ $ 715,000 $ 708,107
-------------
TOTAL SHORT-TERM SECURITIES (cost $22,849,259)........................ 22,848,833
-------------
TOTAL INVESTMENTS --
(cost $158,981,950) 100.0% 186,310,923
Other assets less liabilities -- 0.0 56,655
------ -------------
NET ASSETS -- 100.0% $186,367,578
====== ==============
</TABLE>

-----------------------------

+ Non-income producing securities

ADR -- American Depository Receipt

See Notes to Financial Statements

- ---------------------

62
<PAGE> 58

- ---------------------

SUNAMERICA SERIES TRUST
PROVIDENT GROWTH
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 96.5% SHARES VALUE
----------------------------------------------------------------------------------------------------

<S> <C> <C>
CONSUMER DISCRETIONARY -- 8.2%
Apparel & Textile -- 2.6%
Gucci Group NV ADR.................................................... 7,200 $ 528,300
NIKE, Inc., Class B .................................................. 35,800 2,036,125
Tommy Hilfiger Corp.+................................................. 29,200 1,576,800

Housing -- 0.3%
American Standard Cos., Inc.+......................................... 14,600 556,625

Retail -- 5.3%
CVS Corp. ............................................................ 22,700 933,538
Home Depot, Inc. ..................................................... 25,900 1,350,037
Kohl's Corp.+......................................................... 34,600 1,379,675
Price/Costco, Inc.+................................................... 60,300 1,401,975
Safeway, Inc.+........................................................ 45,600 1,852,500
Staples, Inc.+........................................................ 47,000 928,250
Walgreen Co. ......................................................... 17,200 718,100
-------------
13,261,925
-------------
CONSUMER STAPLES -- 2.3%
Household Products -- 2.3%
Estee Lauder Cos., Inc., Class A...................................... 7,400 370,000
Gillette Co. ......................................................... 44,600 3,289,250
-------------
3,659,250
-------------
ENERGY -- 2.5%
Energy Services -- 1.8%
Schlumberger Ltd. .................................................... 16,200 1,684,800
Tosco Corp. .......................................................... 15,700 1,195,163

Energy Sources -- 0.7%
Enron Corp. .......................................................... 24,800 1,134,600
-------------
4,014,563
-------------
FINANCE -- 17.9%
Financial Services -- 15.1%
Associates First Capital Corp. Class A................................ 41,100 1,988,213
Federal Home Loan Mortgage Corp. ..................................... 17,900 2,045,075
Federal National Mortgage Association................................. 164,500 6,785,625
First Data Corp. ..................................................... 153,650 6,126,794
First USA, Inc. ...................................................... 72,000 2,367,000
MBNA Corp. ........................................................... 116,100 4,687,537
Synovus Financial Corp. .............................................. 6,400 209,600

Insurance -- 2.8%
American International Group, Inc. ................................... 23,300 2,679,500
MGIC Investment Corp. ................................................ 23,500 1,759,562
-------------
28,648,906
-------------
</TABLE>

---------------------

63
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 20.3%
Drugs -- 12.0%
Amgen, Inc.+.......................................................... 40,500 $ 2,465,437
Cardinal Health, Inc. ................................................ 26,800 2,241,150
Elan Corp. PLC ADR+................................................... 40,200 1,195,950
Lilly (Eli) & Co. .................................................... 34,200 2,616,300
Merck & Co., Inc. .................................................... 38,800 3,220,400
Pfizer, Inc. ......................................................... 83,000 7,438,875

Health Services -- 4.3%
Columbia/HCA Healthcare Corp. ........................................ 24,900 996,000
HEALTHSOUTH Corp.+.................................................... 61,200 2,302,650
Oxford Health Plans, Inc.+............................................ 62,900 3,648,200

Medical Products -- 4.0%
Boston Scientific Corp.+.............................................. 31,200 1,821,300
Medtronic, Inc. ...................................................... 68,500 4,529,563
-------------
32,475,825
-------------
INDUSTRIAL & COMMERCIAL -- 6.0%
Business Services -- 6.0%
AccuStaff, Inc.+...................................................... 33,100 670,275
CUC International, Inc.+.............................................. 76,350 2,013,731
Fluor Corp. .......................................................... 13,700 931,600
Republic Industries, Inc.+............................................ 65,100 2,172,713
Service Corp. International........................................... 48,800 1,470,100
Tyco International Ltd. .............................................. 42,900 2,348,775
-------------
9,607,194
-------------
INFORMATION & ENTERTAINMENT -- 8.4%
Broadcasting & Media -- 1.7%
British Sky Broadcast Group PLC ADR................................... 51,500 2,690,875

Leisure & Tourism -- 6.7%
Circus Circus Enterprises, Inc.+...................................... 30,000 1,095,000
Disney (Walt) Co. .................................................... 35,834 2,642,757
HFS, Inc.+............................................................ 73,500 4,759,125
Mirage Resorts, Inc.+................................................. 92,900 2,241,213
-------------
13,428,970
-------------
INFORMATION TECHNOLOGY -- 29.2%
Communication Equipment -- 5.4%
ADC Telecommunications, Inc.+......................................... 36,600 1,326,750
Ascend Communications, Inc.+.......................................... 25,800 1,835,025
Ericsson (L.M.) Telephone Co., Class B ADR............................ 177,100 5,467,963

Computers & Business Equipment -- 4.4%
Automatic Data Processing, Inc. ...................................... 16,900 724,588
Ceridian Corp.+....................................................... 27,100 1,304,187
Computer Sciences Corp.+.............................................. 30,700 2,413,787
Danka Business Systems PLC ADR........................................ 44,600 1,873,200
Electronic Data Systems Corp. ........................................ 16,300 788,513

Electronics -- 1.3%
Analog Devices, Inc.+................................................. 18,725 601,541
Thermo Electron Corp. ................................................ 41,150 1,491,687

Software -- 14.0%
Cisco Systems, Inc.+.................................................. 60,600 4,113,225
Computer Associates International, Inc. .............................. 70,550 4,638,662
Microsoft Corp.+...................................................... 53,000 8,314,375
Oracle Systems Corp.+................................................. 76,075 3,727,675
</TABLE>

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64
<PAGE> 60
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Software (continued)
Paychex, Inc. ........................................................ 29,550 $ 1,580,925
Telecommunications -- 4.1%
Andrew Corp.+......................................................... 15,775 912,978
Asia Satellite Telecom Holdings ADR+.................................. 7,600 192,850
Lucent Technologies, Inc. ............................................ 56,400 2,890,500
SunGard Data Systems, Inc.+........................................... 25,400 1,066,800
WorldCom, Inc.+....................................................... 63,400 1,466,125
-------------
46,731,356
-------------
MATERIALS -- 1.4%
Chemicals -- 1.0%
Monsanto Co. ......................................................... 40,000 1,590,000

Forest Products -- 0.4%
Alco Standard Corp. .................................................. 12,400 641,700
-------------
2,231,700
-------------
UTILITIES -- 0.3%
Electric Utilities -- 0.3%
AES Corp. ............................................................ 9,800 478,975
-------------
TOTAL INVESTMENT SECURITIES (cost $109,203,171)....................... 154,538,664
-------------

<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 4.4% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 4.4%
Agreement with State Street Bank & Trust Co., bearing interest of
4.75% dated 11/29/96, to be repurchased 12/02/96 in the amount of
$7,000,770 and collateralized by $7,005,000 U.S. Treasury Bonds
6.50% due 11/15/26 (cost $6,998,000)................................ $6,998,000 6,998,000
-------------
TOTAL INVESTMENTS --
(cost $116,201,171) 100.9% 161,536,664
Liabilities in excess of other assets -- (0.9) (1,463,619)
------ -------------
NET ASSETS -- 100.0% $160,073,045
====== =============
</TABLE>

-----------------------------

+ Non-income producing securities

ADR -- American Depository Receipt

See Notes to Financial Statements

---------------------

65
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- ---------------------

SUNAMERICA SERIES TRUST
GLOBAL EQUITIES PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 95.5% Shares Value
----------------------------------------------------------------------------------------------------

<S> <C> <C>
AUSTRALIA -- 0.9%
Coca-Cola Amatil Ltd. (Consumer Staples)............................. 39,863 $ 450,349
Mayne Nickless Ltd. (Industrial & Commercial)........................ 37,000 240,925
Qantas Airways Ltd. (Industrial & Commercial)........................ 47,680 74,124
Western Mining Corp. Holdings Ltd. ADR (Materials)+.................. 72,754 461,892
Woolworths Ltd. (Consumer Discretionary)+............................ 355,218 884,720
------------
2,112,010
------------
BELGIUM -- 0.3%
Delhaize Le-Lion SA (Consumer Discretionary)+........................ 5,700 334,554
Kredietbank NV (Finance)............................................. 1,480 485,705
------------
820,259
------------
BERMUDA -- 0.1%
First Pacific Co., Ltd. (Finance).................................... 242,347 336,941
------------
CANADA -- 0.4%
Renaissance Energy Ltd. (Energy)+.................................... 29,400 1,044,238
------------
DENMARK -- 0.8%
BG Bank (Finance)+................................................... 5,700 252,439
Den Danske Bank (Finance)............................................ 13,300 1,004,276
ISS International Service Systems A/S (Industrial & Commercial)+..... 22,000 608,488
------------
1,865,203
------------
FINLAND -- 0.5%
Kesko (Consumer Discretionary)+...................................... 12,070 160,760
Orion-yhtyma OY (Healthcare)+........................................ 21,000 704,911
UPM-Kymmene OY (Materials)+.......................................... 21,900 436,345
------------
1,302,016
------------

FRANCE -- 3.8%
Alcatel Alsthom Compagnie General d'Electricite (Information
Technology)........................................................ 1,930 175,421
Assurance General de France (Finance)................................ 27,210 890,714
Bouygues SA (Consumer Discretionary)................................. 7,905 879,208
Eaux (cie Generale) (Industrial & Commercial)........................ 5,220 643,531
Elf Aquitaine SA (Energy)............................................ 15,070 1,315,791
GTM-Entrepose (Industrial & Commercial).............................. 6,625 329,107
Legris Industries SA (Industrial & Commercial)+...................... 13,150 568,915
Pechiney SA (Materials).............................................. 10,058 404,530
Salomon SA (Consumer Discretionary).................................. 5,000 440,292
Sefimeg (Real Estate)................................................ 4,630 342,123
Simco (Real Estate)+................................................. 113 9,518
Simco registered (Real Estate)....................................... 3,550 316,889
Societe de Immeubles (Real Estate)................................... 5,195 318,236
Total SA, Series B (Energy).......................................... 18,030 1,441,696
Unibail SA (Finance)................................................. 5,730 546,806
Union Immeubles de France (Real Estate).............................. 3,300 263,997
USINOR SACILOR (Materials)........................................... 33,200 496,684
------------
9,383,458
------------
</TABLE>

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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
GERMANY -- 2.3%
Bayer AG (Materials)................................................. 36,750 $ 1,478,745
Deutsche Telekom (Information Technology)............................ 14,100 306,641
Lufthansa AG (Industrial & Commercial)............................... 48,000 617,905
Preussag AG (Materials)+............................................. 1,300 305,117
Schmalbach-Lubeca AG (Materials)+.................................... 3,700 814,284
Sudzucker AG (Consumer Staples)...................................... 1,403 647,637
Veba AG (Utilities).................................................. 23,470 1,372,555
Volkswagen AG (Consumer Discretionary)+.............................. 550 220,450
------------
5,763,334
------------
HONG KONG -- 1.1%
Asia Satellite Telecom Holdings Ltd. (Information Technology)+....... 15,000 38,509
CITIC Pacific Ltd. (Information & Entertainment)..................... 74,000 385,696
Dao Heng Bank Group (Finance)........................................ 87,000 412,946
Guangshen Railway Co., Ltd. ADR (Industrial & Commercial)+........... 11,000 217,250
Hong Kong & China Gas Co., Ltd. (Utilities)+......................... 85,680 170,097
Hysan Development Co., Ltd. (Real Estate)............................ 46,000 175,802
New World Development Co., Ltd. (Real Estate)........................ 28,089 189,815
Sun Hung Kai Properties Ltd. (Real Estate)........................... 17,000 211,071
Swire Pacific Ltd., Class A (Industrial & Commercial)................ 35,000 331,576
Television Broadcasting Ltd. (Information & Entertainment)........... 100,000 384,118
Wharf Holdings Ltd. (Real Estate).................................... 48,000 248,319
------------
2,765,199
------------
INDIA -- 0.4%
Bajaj Auto GDR (Consumer Discretionary).............................. 15,400 431,200
Bank of India GDR (Finance)+*........................................ 22,000 358,050
Industrial Credit & Investment Corp. of India Ltd. GDR (Finance)+*... 24,000 207,000
Industrial Credit & Investment Corp. of India Ltd. GDR (Finance)+.... 2,000 17,250
------------
1,013,500
------------
INDONESIA -- 0.6%
Hanjaya Mandala Sampoerna alien (Consumer Staples)................... 144,000 733,817
Perusahaan Persero Part Telekom ADR alien (Utilities)................ 6,000 197,250
PT Indosat alien (Information Technology)+........................... 188,000 519,104
PT Telekomunikasi Indonesia alien (Information Technology)+.......... 59,000 97,495
------------
1,547,666
------------
ITALY -- 1.2%
ENI SpA (Energy)..................................................... 164,900 868,038
Istituto Nazionale Delle Asazioni SpA (Finance)+..................... 471,000 655,569
Magneti Marelli SpA (Industrial & Commercial)+....................... 203,300 235,358
Saipem SpA (Energy)+................................................. 72,000 332,940
Telecom Italia SpA (Finance)+........................................ 372,400 876,987
------------
2,968,892
------------
JAPAN -- 19.5%
Amano Corp. (Industrial & Commercial)................................ 48,000 543,635
Asahi Glass Co., Ltd. (Materials).................................... 93,000 947,147
Bank Of Tokyo-Mitsubishi (Finance)................................... 55,300 1,131,247
Canon, Inc. (Information Technology)................................. 52,000 1,095,698
Chiba Bank Ltd. (Finance)............................................ 30,000 227,305
Dai Nippon Printing Co., Ltd. (Industrial & Commercial).............. 35,000 639,157
Daifuku Co., Ltd. (Industrial & Commercial).......................... 38,000 443,723
Daito Trust Construction Co. (Industrial & Commercial)............... 57,000 745,654
Daiwa Securities Co., Ltd. (Finance)................................. 23,000 248,376
DDI Corp. (Healthcare)............................................... 423 3,026,734
East Japan Railway (Industrial & Commercial)......................... 133 609,535
Eisai Co. Ltd. (Healthcare).......................................... 33,250 653,907
Fuji Photo Film Co., Ltd. (Materials)................................ 11,000 344,776
</TABLE>

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67
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (continued)
Furukawa Co., Ltd. (Materials)....................................... 74,000 $ 288,464
Hirose Electric Co., Ltd. (Information Technology)................... 18,000 1,090,430
Honda Motor Co., Ltd. (Consumer Discretionary)....................... 19,000 560,492
House Food Corp. (Consumer Staples).................................. 17,000 289,552
Hoya Corp. (Healthcare).............................................. 32,000 1,199,649
Ishikawajima-Harima Heavy Industries Co. (Industrial & Commercial)... 64,000 297,805
Ito-Yokado Co. (Consumer Discretionary).............................. 10,000 504,829
Japan Securities Finance Co., Ltd. (Finance)......................... 53,000 758,472
Japan Tobacco, Inc. (Consumer Staples)............................... 69 491,299
Kamigumi Co., Ltd. (Industrial & Commercial)......................... 37,000 280,992
Kandenko Co. (Consumer Discretionary)................................ 38,400 367,480
Kao Corp. (Consumer Staples)......................................... 67,000 776,471
Kirin Brewery Co., Ltd. (Consumer Staples)........................... 32,000 323,090
Kokuyo Co., Ltd. (Industrial & Commercial)........................... 19,000 495,435
Kuraray Co., Ltd. (Materials)........................................ 67,000 647,059
Kyocera Corp. (Information Technology)............................... 8,000 514,135
Long-Term Credit Bank of Japan Ltd. (Finance)........................ 1,000 6,321
Mabuchi Motor Co., Ltd. (Consumer Discretionary)..................... 3,000 150,658
Maeda Corp. (Industrial & Commercial)................................ 11,000 134,241
Matsushita Electric Industrial Co., Ltd. (Information Technology).... 72,000 1,245,303
Matsushita Electric Works Ltd. (Industrial & Commercial)............. 48,000 446,708
Mitsubishi Heavy Industrial Ltd. (Industrial & Commercial)........... 70,000 571,554
Mitsubishi Materials Corp. (Materials)............................... 40,000 179,104
Mitsubishi Oil Co., Ltd. (Utilities)................................. 59,000 391,089
Mitsui Marine & Fire Co., Ltd. (Finance)............................. 75,000 482,660
Mitsui Trust & Banking Co. (Finance)................................. 136,000 1,301,492
National House Industrial Co., Ltd. (Industrial & Commercial)........ 36,000 515,189
NGK Insulators Ltd. (Industrial & Commercial)........................ 26,000 264,794
Nikko Securities Co., Ltd. (Finance)................................. 49,000 456,014
Nippon Express Co., Ltd. (Industrial & Commercial)................... 59,000 449,622
Nippon Light Metal Co., Ltd. (Materials)............................. 62,000 284,688
Nippon Steel Corp. (Materials)....................................... 146,000 440,948
Nisshin Steel Co., Ltd. (Materials).................................. 269,000 824,241
NKK Corp. (Materials)+............................................... 166,000 408,077
Nomura Securities International, Inc. (Finance)...................... 53,000 893,415
Osaka Gas Co., Ltd. (Utilities)...................................... 120,000 369,798
Rohm Co. (Information Technology).................................... 38,000 2,335,382
Sankyo Co., Ltd. (Healthcare)........................................ 5,000 133,889
Santen Pharmaceutical Co. (Healthcare)+.............................. 10,200 205,970
Seven-Eleven Japan Co., Ltd. (Consumer Discretionary)................ 33,400 1,991,097
Shimano, Inc. (Industrial & Commercial).............................. 27,000 457,507
Shimizu Construction Co. (Consumer Discretionary).................... 48,000 400,351
Shiseido Co., Ltd. (Healthcare)...................................... 41,000 493,152
Sony Music Entertainment, Inc. (Information & Entertainment)......... 6,000 246,532
Sumitomo Electric Industries Ltd. (Industrial & Commercial).......... 36,000 505,707
Sumitomo Marine & Fire Insurance Co., Ltd. (Finance)................. 61,000 433,802
Sumitomo Realty & Development Co., Ltd. (Real Estate)................ 76,000 527,129
Sumitomo Rubber Industries Ltd. (Industrial & Commercial)............ 38,000 270,904
Taisho Pharmaceutical Co., Ltd. (Healthcare)......................... 24,000 535,206
Takeda Chemical Industries Ltd. (Healthcare)......................... 20,000 391,572
TDK Corp. (Information Technology)................................... 26,000 1,675,505
Toagosei Co., Ltd. (Materials)....................................... 29,000 124,249
Tokai Bank Ltd. (Finance)............................................ 57,000 655,575
Tokyo Electric Power Co., Inc. (Utilities)........................... 25,100 566,348
Tokyo Gas Co., Ltd. (Utilities)...................................... 258,000 761,089
Tokyo Steel Manufacturing Co., Ltd. (Materials)...................... 66,000 973,485
Toyo Kanetsu K.K. (Energy)........................................... 46,000 185,777
Toyota Motor Corp. (Consumer Discretionary).......................... 81,000 2,211,677
Ube Industries Ltd. (Materials)...................................... 36,000 112,520
</TABLE>

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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (continued)
Ushio, Inc. (Consumer Staples)+...................................... 43,000 $ 468,130
Yakult Honsha Co. (Consumer Staples)................................. 30,000 329,236
Yamanouchi Pharmaceutical Co., Ltd. (Healthcare)..................... 43,000 875,856
Yamatake-Honeywell (Information Technology).......................... 26,000 422,300
Yamazaki Baking Co. (Consumer Staples)............................... 19,000 303,600
------------
47,952,011
------------
KOREA -- 0.5%
Hyundai Motor Co. GDR (Consumer Discretionary)....................... 1,000 10,375
Korea Electric Power Corp. (Utilities)............................... 7,000 223,777
Korea Electric Power Corp. ADR (Utilities)........................... 3,400 59,925
Korea Mobile Telecommunications ADR (Information Technology)......... 58,300 757,900
Pohang Iron & Steel Co., Ltd. ADR (Materials)........................ 11,000 221,375
------------
1,273,352
------------
MALAYSIA -- 0.8%
AMMB Holdings Bhd (Finance).......................................... 54,000 429,521
Malakoff Bhd (Industrial & Commercial)............................... 61,000 277,602
Malayan Banking Bhd (Finance)(1)..................................... 30,000 296,795
Petronas Gas Bhd (Energy)............................................ 70,000 285,318
Resorts World Bhd (Information & Entertainment)...................... 116,000 582,984
------------
1,872,220
------------
NETHERLANDS -- 2.2%
Akzo Nobel NV (Materials)............................................ 9,910 1,315,548
Apothekers Cooperative Opg (Healthcare)+............................. 7,150 189,915
CSM NV (Industrial & Commercial)+.................................... 3,000 161,805
Fortis NV (Finance).................................................. 41,900 1,397,234
ING Groep NV (Finance)............................................... 39,000 1,366,119
SGS Thomson Microelectronics NV (Information Technology)+............ 4,700 310,856
Vendex International NV (Consumer Discretionary)..................... 17,200 747,132
------------
5,488,609
------------
NEW ZEALAND -- 0.3%
Fletcher Challenge Ltd. (Industrial & Commercial).................... 82,319 135,832
Lion Nathan Ltd. (Consumer Staples).................................. 105,000 269,595
Telecommunications Corp. of New Zealand (Utilities).................. 86,000 453,243
------------
858,670
------------
NORWAY -- 0.6%
Bergesen D.Y. AS (Industrial & Commercial)........................... 30,300 694,001
Orkla AS (Industrial & Commercial)+.................................. 5,600 373,450
Schibsted AS (Information & Entertainment)+.......................... 11,600 211,468
Unitor AS (Industrial & Commercial)+................................. 6,580 83,044
------------
1,361,963
------------
PHILIPPINES -- 0.2%
Manila Electric Co. (Utilities)...................................... 42,575 315,838
Philippine Commerce International Bank (Finance)+.................... 4,470 59,519
------------
375,357
------------
SINGAPORE -- 0.7%
Overseas Chinese Banking Corp., Ltd. alien (Finance)+................ 50,600 613,333
Overseas Union Bank Ltd. alien (Finance)+............................ 58,000 425,954
Singapore Airlines Ltd. alien (Information & Entertainment).......... 8,000 75,294
Singapore Press Holdings Ltd. alien (Information & Entertainment).... 33,400 631,087
------------
1,745,668
------------
SPAIN -- 0.8%
Autopistas Concesionaria Espana SA (Industrial & Commercial)......... 26,300 318,751
Banco de Santander SA (Finance)+..................................... 6,100 330,570
</TABLE>

---------------------

69
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
SPAIN (continued)
Repsol SA (Energy)................................................... 15,500 $ 573,742
Tabacalera SA (Consumer Staples)..................................... 13,300 521,568
Viscofan Envoltura (Consumer Staples)+............................... 11,800 182,183
------------
1,926,814
------------
SWEDEN -- 1.0%
Astra AB (Healthcare)................................................ 18,600 891,834
Electrolux AB (Consumer Staples)..................................... 5,700 333,991
Incentive AB (Consumer Discretionary)+............................... 2,800 185,538
Sparbanken Sverige (Finance)+........................................ 15,500 256,195
Stora Kopparbergs (Materials)........................................ 51,700 700,563
------------
2,368,121
------------
SWITZERLAND -- 2.3%
Adecco SA (Industrial & Commercial)+................................. 1,120 288,700
Baloise Holdings (Finance)........................................... 354 790,288
Ciba-Geigy AG (Materials)............................................ 1,510 1,868,531
Nestle SA (Consumer Staples)......................................... 1,090 1,183,237
Sandoz AG (Healthcare)............................................... 590 686,183
Schindler Holding AG (Industrial & Commercial)+...................... 326 342,381
Swissair AG (Industrial & Commercial)+............................... 376 285,570
Zurich Versicherun (Finance)+........................................ 1,190 337,783
------------
5,782,673
------------
TAIWAN, PROVINCE OF CHINA -- 0.1%
Advanced Semiconductor Materials International NV GDR (Information
Technology)+....................................................... 35,080 298,180
------------
THAILAND -- 0.2%
Bangkok Bank PLC alien (Finance)..................................... 12,000 137,194
Thai Farmers Bank alien (Finance).................................... 42,000 358,489
------------
495,683
------------
UNITED KINGDOM -- 11.6%
Anglian Water PLC (Industrial & Commercial).......................... 79,800 781,498
B.A.T. Industries PLC (Industrial & Commercial)+..................... 91,700 732,305
BAA PLC (Industrial & Commercial).................................... 115,000 947,377
Barclays PLC (Finance)+.............................................. 87,000 1,496,318
Bass PLC (Consumer Staples)+......................................... 53,300 702,094
British Aerospace PLC (Industrial & Commercial)...................... 37,500 729,447
British Petroleum Co. PLC (Energy)................................... 116,200 1,343,587
British Sky Broadcasting Group PLC (Information & Entertainment)..... 80,300 700,667
British Telecommunications PLC (Information Technology).............. 147,700 934,920
BTR PLC (Industrial & Commercial).................................... 270,600 1,087,313
Cadbury Schweppes PLC (Consumer Staples)............................. 86,400 742,999
Compass Group (Information & Entertainment)+......................... 51,900 529,209
General Electric Co. (Industrial & Commercial)....................... 122,000 764,038
Glaxo Wellcome PLC (Healthcare)...................................... 57,600 947,330
Grand Metropolitan PLC (Information & Entertainment)................. 95,700 747,355
Hanson PLC (Industrial & Commercial)................................. 338,000 451,765
Hepworth PLC (Industrial & Commercial)............................... 74,000 342,132
Holliday Chemical Holdings PLC (Finance)............................. 167,860 352,766
Ladbroke Group PLC (Information & Entertainment)..................... 200,000 689,307
National Grid Group PLC (Utilities)+................................. 286,000 937,626
National Westminster Bank PLC (Finance)+............................. 60,700 706,194
Pearson PLC (Information & Entertainment)............................ 47,900 591,905
Rank Group PLC (Industrial & Commercial)+............................ 144,700 1,058,247
Reed International PLC (Information & Entertainment)................. 51,856 1,004,775
Reuters Holdings PLC (Industrial & Commercial)+...................... 82,000 998,117
Rugby Group PLC (Industrial & Commercial)............................ 273,200 440,942
</TABLE>

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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (continued)
Sainsbury (J.) PLC (Consumer Discretionary).......................... 147,600 $ 931,806
Sears PLC (Consumer Discretionary)................................... 458,100 716,263
Shell Transport & Trading (Energy)+.................................. 29,220 485,362
Siebe PLC (Industrial & Commercial)+................................. 42,900 684,828
Smithkline Beecham (Healthcare)...................................... 57,700 795,461
Tesco PLC (Consumer Discretionary)................................... 123,000 702,886
TI Group PLC (Industrial & Commercial)+.............................. 101,300 944,365
Tomkins PLC (Industrial & Commercial)+............................... 134,599 562,338
United Assurance Group PLC (Finance)+................................ 73,000 586,037
Vodafone Group PLC (Information Technology).......................... 147,900 640,287
Wimpey (George) PLC (Consumer Discretionary)......................... 330,000 696,284
-------------
28,506,150
-------------
UNITED STATES -- 42.3%
3Com Corp. (Information Technology)+................................. 19,300 1,449,912
Abbott Laboratories (Healthcare)..................................... 39,300 2,190,975
AirTouch Communications, Inc. (Information Technology)+.............. 37,000 948,125
AlliedSignal, Inc. (Industrial & Commercial)......................... 26,200 1,919,150
Altera Corp. (Information Technology)+............................... 13,700 1,034,350
American Express Co. (Finance)+...................................... 15,100 788,975
American International Group, Inc. (Finance)......................... 19,400 2,231,000
Amgen, Inc. (Healthcare)+............................................ 32,300 1,966,262
Atmel Corp. (Information Technology)+................................ 21,300 700,238
Boston Scientific Corp. (Healthcare)+................................ 18,000 1,050,750
Bristol-Myers Squibb Co. (Healthcare)................................ 16,600 1,888,250
Campbell Soup Co. (Consumer Staples)................................. 21,000 1,735,125
Carnival Corp. (Information & Entertainment)......................... 30,300 958,238
Centocor, Inc. (Industrial & Commercial)+............................ 14,100 389,513
Chase Manhattan Corp. (Finance)...................................... 19,600 1,852,200
Cisco Systems, Inc. (Information Technology)+........................ 29,000 1,968,375
Colgate-Palmolive Co. (Consumer Staples)............................. 28,600 2,649,075
Columbia/HCA Healthcare Corp. (Healthcare)........................... 42,000 1,680,000
Compaq Computer Corp. (Information Technology)+...................... 24,300 1,925,775
Cox Communications, Inc., Class A (Information & Entertainment)+..... 28,200 578,100
Crown, Cork & Seal, Inc. (Materials)................................. 18,900 1,001,700
Dean Witter, Discover & Co. (Finance)................................ 15,000 1,025,625
Dell Computer Corp. (Information Technology)+........................ 14,000 1,422,750
Disney (Walt) Co. (Information & Entertainment)...................... 25,000 1,843,750
Electronic Data Systems Corp. (Information Technology)............... 16,500 798,188
Enron Corp. (Energy)................................................. 7,500 343,125
Exxon Corp. (Energy)................................................. 18,000 1,703,250
Federated Department Stores, Inc. (Consumer Discretionary)+.......... 33,400 1,139,775
First Chicago Corp. (Finance)........................................ 31,142 1,829,592
First Data Corp. (Finance)........................................... 22,000 877,250
First Union Corp. (Finance).......................................... 11,800 901,225
FPL Group, Inc. (Utilities)+......................................... 27,000 1,245,375
General Electric Co. (Industrial & Commercial)....................... 33,700 3,504,800
General Reinsurance Group (Finance)+................................. 3,300 556,875
Gillette Co. (Consumer Staples)...................................... 40,300 2,972,125
Hewlett-Packard Co. (Information Technology)......................... 11,900 641,113
Intel Corp. (Information Technology)................................. 34,400 4,364,500
International Business Machines Corp. (Information Technology)....... 8,100 1,290,937
Kohl's Corp. (Consumer Discretionary)+............................... 21,600 861,300
Kroger Co. (Consumer Discretionary)+................................. 30,300 1,397,587
La Quinta Inns, Inc. (Information & Entertainment)................... 30,600 589,050
Lowe's Cos., Inc. (Consumer Discretionary)........................... 11,400 463,125
Lucent Technologies, Inc. (Information Technology)+.................. 10,176 521,520
MBNA Corp. (Finance)................................................. 25,700 1,037,638
McDonald's Corp. (Consumer Staples).................................. 17,100 799,425
</TABLE>

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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (continued)
Medtronic, Inc. (Healthcare)+........................................ 13,800 $ 912,525
Merck & Co., Inc. (Healthcare)....................................... 57,300 4,755,900
Merrill Lynch & Co., Inc. (Finance).................................. 18,560 1,489,440
Microsoft Corp. (Information Technology)+............................ 12,200 1,913,875
Monsanto Co. (Materials)............................................. 56,600 2,249,850
Morgan Stanley Group, Inc. (Finance)................................. 12,600 757,575
Morton International, Inc. (Materials)............................... 24,800 1,001,300
NationsBank Corp. (Finance).......................................... 5,440 563,720
Netscape Communications Corp. (Information Technology)+.............. 9,900 553,163
Oracle Systems Corp. (Information Technology)+....................... 44,200 2,165,800
Oxford Health Plans, Inc. (Healthcare)+.............................. 10,900 632,200
Pacificare Health Systems, Inc., Class A (Healthcare)+............... 3,500 276,500
Pacificare Health Systems, Inc., Class B (Healthcare)+............... 4,600 381,800
PepsiCo, Inc. (Consumer Staples)..................................... 42,900 1,281,637
Pfizer, Inc. (Healthcare)............................................ 28,000 2,509,500
Philip Morris Cos., Inc. (Consumer Staples).......................... 26,400 2,722,500
PMI Group, Inc. (Finance)............................................ 18,400 1,067,200
Price/Costco, Inc. (Consumer Discretionary)+......................... 34,200 795,150
Procter & Gamble Co. (Consumer Staples).............................. 21,300 2,316,375
RJR Nabisco Holdings Corp. (Consumer Staples)........................ 17,400 556,800
Schering-Plough Corp. (Healthcare)................................... 26,200 1,866,750
Sears, Roebuck & Co. (Consumer Discretionary)........................ 25,600 1,273,600
Solectron Corp. (Information Technology)+............................ 5,700 333,450
Sunbeam Corp. (Consumer Staples)..................................... 47,700 1,317,712
Tele-Communications Liberty Media Group (Information &
Entertainment)+.................................................... 33,700 842,500
Tele-Communications TCI Group, Series A (Information &
Entertainment)+.................................................... 29,000 391,500
Transocean Offshore, Inc. (Energy)+.................................. 5,000 301,250
Travelers Group, Inc. (Finance)...................................... 61,067 2,748,000
Tyco International Ltd. (Industrial & Commercial).................... 22,500 1,231,875
United States Industries, Inc. (Consumer Staples)+................... 21,200 625,400
Wendy's International, Inc. (Consumer Staples)....................... 44,400 949,050
Whitman Corp. (Industrial & Commercial).............................. 21,000 483,000
-------------
104,302,885
-------------
TOTAL COMMON STOCK (cost $205,444,177)............................... 235,531,072
-------------
<CAPTION>
PREFERRED STOCK -- 1.2%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
BRAZIL -- 0.1%
Dixie Toga SA (Industrial & Commercial).............................. 156,323 127,116
Klabin Fabricadora (Materials)....................................... 127,525 122,217
-------------
249,333
-------------
FINLAND -- 0.3%
Nokia Corp. (Information Technology)................................. 10,900 604,706
-------------
GERMANY -- 0.8%
Henkel KGAA (Consumer Staples)....................................... 20,760 1,033,884
Hornbach Holding AG (Consumer Discretionary)......................... 8,710 574,777
KSB Kl Schanz Beck (Finance)......................................... 3,210 417,398
-------------
2,026,059
-------------
TOTAL PREFERRED STOCK (cost $2,696,723).............................. 2,880,098
-------------
</TABLE>

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72
<PAGE> 68
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(DENOMINATED
IN LOCAL
BONDS & NOTES -- 0.3% CURRENCY) VALUE
----------------------------------------------------------------------------------------------------

<CAPTION>
<S> <C> <C>
JAPAN -- 0.3%
Sumitomo Bank Ltd. 0.75% 2001 (Finance) (cost $622,397).............. 68,000,000 $ 648,507
-------------
<CAPTION>
WARRANTS -- 0.0%+ SHARES
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HONG KONG -- 0.0%
Hong Kong & China Gas Co., Ltd. (Utilities) 9/30/97.................. 8,640 5,448
Hysan Development Co., Ltd. (Real Estate) 4/30/98.................... 2,750 2,098
-------------
7,546
-------------
MALAYSIA -- 0.0%
Development & Commercial Bank Holdings Bhd (Finance)(1) 12/27/99..... 32,000 50,400
TA Enterprise Bhd (Finance) 11/22/98................................. 50,000 40,364
-------------
90,764
-------------
THAILAND -- 0.0%
Thai Farmers Bank alien (Finance) 9/15/02............................ 2,375 2,720
-------------
TOTAL WARRANTS (cost $7,413)......................................... 101,030
-------------
TOTAL INVESTMENT SECURITIES (cost $208,770,710)...................... 239,160,707
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 4.4% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 4.4%
Cayman Island Time Deposit with State Street Bank & Trust Co.
4.88% due 12/02/96 (cost $10,826,000).............................. $10,826,000 10,826,000
-------------
TOTAL INVESTMENTS --
(cost $219,596,710) 101.4% 249,986,707
Liabilities in excess of other assets -- (1.4) (3,504,701)
------ -------------
NET ASSETS -- 100.0% $246,482,006
====== ==============
</TABLE>

-----------------------------

+ Non-income producing securities

* Resale restricted to qualified institutional buyers

(1) Fair valued security; see Note 2

ADR -- American Depositary Receipt

GDR -- Global Depositary Receipt

See Notes to Financial Statements

---------------------

73
<PAGE> 69

- ---------------------

SUNAMERICA SERIES TRUST
INTERNATIONAL DIVERSIFIED
EQUITIES PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 92.2% SHARES VALUE
----------------------------------------------------------------------------------------------------

<S> <C> <C>
AUSTRALIA -- 2.3%
Amcor Holdings Ltd. (Materials)...................................... 15,900 $ 97,968
Australian National Industries Ltd. (Materials)...................... 20,100 20,777
Boral Ltd. (Industrial & Commercial)................................. 26,067 68,106
Brambles Industries Ltd. (Industrial & Commercial)................... 6,300 110,247
Broken Hill Proprietary Co. (Materials).............................. 44,700 655,619
Burns Philp & Co., Ltd. (Consumer Staples)........................... 13,900 24,324
Coca-Cola Amatil Ltd. (Consumer Staples)............................. 12,000 135,569
Coles Myer Ltd. (Consumer Discretionary)............................. 32,100 119,924
CRA Ltd. (Materials)................................................. 7,500 125,204
CSR Ltd. (Industrial & Commercial)................................... 25,700 84,091
Fosters Brewing Group Ltd. (Consumer Staples)........................ 57,600 107,361
General Property Trust (Real Estate)................................. 20,300 40,977
Gio Australia Holdings Ltd. (Finance)................................ 11,600 31,724
Goodman Fielder Wattie Ltd. (Consumer Staples)....................... 32,614 41,411
Highlands Gold Ltd. (Materials)+..................................... 5,459 3,288
ICI Australia Ltd. (Materials)....................................... 8,200 84,096
Lend Lease Corp., Ltd. (Real Estate)................................. 6,822 126,601
M.I.M. Holdings Ltd. (Materials)..................................... 40,030 57,018
National Australia Bank Ltd. (Finance)............................... 34,149 425,264
Newcrest Mining Ltd. (Materials)..................................... 7,931 29,049
News Corp., Ltd. (Information & Entertainment)....................... 45,814 243,874
Normandy Mining Ltd. (Materials)..................................... 39,222 52,675
North Ltd. (Materials)............................................... 18,450 55,263
Pacific Dunlop Ltd. (Industrial & Commercial)........................ 26,100 59,907
Pioneer International Ltd. (Consumer Staples)........................ 24,700 68,354
Renison Goldfields Consolidated Ltd. (Materials)..................... 5,722 24,777
Santos Ltd. (Energy)................................................. 15,700 63,894
Sons Of Gwalia Ltd. (Materials)...................................... 3,400 18,541
Southcorp Holdings Ltd. (Industrial & Commercial).................... 19,243 63,277
TABCORP. Holdings Ltd. (Information & Entertainment)................. 10,300 47,451
TNT Ltd. (Industrial & Commercial)+.................................. 8,400 16,546
Western Mining Corp. Holdings Ltd. (Materials)....................... 25,365 161,035
Westfield Trust (Real Estate)........................................ 24,086 48,619
Westfield Trust new (Real Estate).................................... 1,047 2,028
Westpac Banking Corp. (Finance)...................................... 44,900 268,611
-------------
3,583,470
-------------
BRAZIL -- 0.2%
Centrais Electricas Brasileiras SA (Utilities)+...................... 695,000 222,023
Companhia Paulista de Forca e Luz (Utilities)+....................... 194,000 19,438
Companhia Siderurgica Nacional (Materials)........................... 633,000 17,280
Light Particapacoes (Utilities)+..................................... 308,000 57,873
Light-Servicos de Eletricidade SA (Utilities)........................ 138,000 43,618
Telec de Sao Paulo SA (Utilities)+................................... 11,142 1,968
-------------
362,200
-------------
FRANCE -- 6.6%
Accor SA (Information & Entertainment)............................... 923 118,383
Alcatel Alsthom (Information Technology)............................. 3,818 347,024
AXA SA (Finance)..................................................... 5,310 319,080
</TABLE>

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74
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FRANCE (continued)
Banque National Paris (Finance)...................................... 5,370 $ 213,821
BIC (Industrial & Commercial)........................................ 1,025 153,442
Bouygues SA (Consumer Discretionary)................................. 956 106,328
Canal Plus SA (Information & Entertainment).......................... 715 163,974
Carrefour SA (Consumer Discretionary)................................ 1,075 663,875
Cie de St. Gobain (Materials)........................................ 2,703 388,597
Cie Financiere de Paribas (Finance).................................. 2,714 186,465
Cie Generale des Eaux (Industrial & Commercial)...................... 2,979 367,257
Compagnie Bancaire SA (Finance)...................................... 730 83,009
Compaignie UAP SA (Finance).......................................... 9,204 245,085
Compaynie de Suez SA (Finance)....................................... 4,752 203,314
Ecco SA (Industrial & Commercial)(1)+................................ 25 5,872
Elf Aquitaine SA (Energy)............................................ 8,150 711,592
Eridania Beghin-Say SA (Consumer Staples)............................ 1,050 163,013
Essilor International (Healthcare)+.................................. 270 77,736
Etablissements Economiques du Casino Guichard-Perrachon
(Consumer Discretionary)........................................... 2,400 108,656
Groupe Danone (Consumer Staples)..................................... 2,227 327,839
Groupe Saint Louis (Materials)....................................... 270 68,485
Havas SA (Industrial & Commercial)................................... 1,852 131,177
L' Oreal (Consumer Staples).......................................... 1,903 696,166
L'Air Liquide SA (Materials)......................................... 2,055 327,695
Lafarge SA (Materials)............................................... 3,204 202,404
Legrand SA (Consumer Staples)........................................ 865 149,857
Lyonnaise des Eaux SA (Multi-industry)............................... 1,770 168,468
Michelin SA (Consumer Discretionary)................................. 4,671 239,550
Moet Hennessy Louis Vuitton (Consumer Staples)....................... 2,675 677,993
Pernod-Ricard (Consumer Staples)..................................... 1,825 100,966
Peugeot SA (Consumer Discretionary).................................. 1,650 202,783
Pinault Printemps Redoute (Consumer Discretionary)................... 585 232,822
Promodes (Consumer Discretionary).................................... 535 148,708
Rhone Poulenc SA (Healthcare)........................................ 9,526 308,549
Sagem SA (Industrial & Commercial)................................... 90 55,132
Sanofi SA (Consumer Staples)......................................... 2,942 263,574
Schneider SA (Industrial & Commercial)............................... 4,172 198,465
Simco (Real Estate)+................................................. 46 3,875
Simco registered (Real Estate)....................................... 975 87,033
Societe Eurafrance SA (Finance)...................................... 90 40,660
Societe Generale (Finance)+.......................................... 2,240 244,849
Sodexho SA (Industrial & Commercial)................................. 185 92,504
Thomson CSF (Industrial & Commercial)................................ 3,800 122,865
Total SA, Series B (Energy).......................................... 6,642 531,101
Usinor Sacilor (Materials)........................................... 7,910 118,337
-------------
10,368,380
-------------
GERMANY -- 10.2%
Adidas AG (Consumer Discretionary)+.................................. 1,750 151,892
Agiv AG (Multi-industry)+............................................ 1,900 24,521
Allianz AG Holding (Finance)......................................... 850 1,550,127
AMB Aachener Und Muenchner (Finance)................................. 150 107,275
BASF AG (Materials)+................................................. 23,150 856,254
Bayer AG (Materials)+................................................ 28,050 1,128,675
Bayerische Hypotheken Und Bank AG (Finance).......................... 10,150 318,404
Bayerische Vereinsbank AG (Finance).................................. 10,300 431,594
Beiersdorf AG (Consumer Staples)+.................................... 3,050 152,292
Bilfinger & Berger (Industrial & Commercial)+........................ 1,800 67,525
Brau Und Brunnen AG (Consumer Staples)+.............................. 300 20,480
CKAG Colonia Konzern AG (Finance)+................................... 1,250 96,060
Continental AG (Consumer Discretionary).............................. 4,300 74,365
</TABLE>

---------------------

75
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
GERMANY (continued)
Daimler-Benz AG (Consumer Discretionary)+............................ 20,700 $ 1,351,872
Degussa AG (Materials)............................................... 450 186,659
Deutsche Bank AG (Finance)........................................... 19,750 941,210
Deutsche Telekom (Information Technology)+........................... 24,272 527,858
Dresdner Bank AG (Finance)........................................... 18,150 538,682
Heidelberg Zement (Materials)+....................................... 1,650 120,256
Hochtief AG (Industrial & Commercial)+............................... 3,200 128,990
Karstadt AG (Consumer Discretionary)................................. 350 121,627
Klockner Humboldt Deutz AG (Industrial & Commercial)+................ 2,200 10,084
Linde AG (Industrial & Commercial)................................... 400 242,897
Lufthansa AG (Information & Entertainment)+.......................... 15,000 193,095
Manitoba AG (Industrial & Commercial)................................ 500 117,840
Mannesmann AG (Industrial & Commercial).............................. 1,250 521,341
Merck KGAA (Healthcare).............................................. 6,696 247,492
Metro AG (Consumer Discretionary)+................................... 2,360 197,932
Metro AG (Consumer Discretionary)+................................... 1,200 100,644
Munchener Ruckversicherungs (Finance)................................ 304 730,304
Preussag AG (Materials).............................................. 650 152,558
RWE AG (Utilities)+.................................................. 13,650 603,472
SAP AG (Materials)................................................... 2,441 334,068
Schering AG (Consumer Staples)....................................... 2,850 234,026
Siemens AG (Industrial & Commercial)+................................ 22,900 1,103,238
Strabag AG (Consumer Staples)+....................................... 150 11,708
Thyssen AG (Materials)............................................... 1,400 251,037
Veba AG (Utilities).................................................. 19,500 1,140,384
Viag AG (Materials).................................................. 1,100 416,585
Viag AG (Materials)+................................................. 171 63,704
Volkswagen AG (Consumer Discretionary)............................... 1,150 460,942
-------------
16,029,969
-------------
HONG KONG -- 6.9%
Applied International Holdings Ltd. (Information & Entertainment)+... 32,000 1,862
Bank of East Asia Ltd. (Finance)..................................... 42,283 181,010
Cathay Pacific Airways Ltd. (Industrial & Commercial)................ 157,000 258,892
Cheung Kong Holdings Ltd. (Real Estate).............................. 118,000 1,037,765
China Light & Power Co., Ltd. (Utilities)............................ 106,000 455,147
Chinese Estates Ltd. (Real Estate)................................... 88,722 102,698
Dickson Concept Industries Ltd. (Consumer Discretionary)+............ 16,800 61,707
Evergo China Holdings Ltd. (Real Estate)+............................ 13,818 2,609
Giordano International Ltd. (Consumer Discretionary)................. 34,000 29,902
Hang Lung Development Co. (Real Estate).............................. 67,000 149,476
Hang Seng Bank Ltd. (Finance)........................................ 102,800 1,239,796
Hong Kong & China Gas Co., Ltd. (Utilities).......................... 104,320 207,102
Hong Kong Aircraft Engineering Co., Ltd. (Industrial & Commercial)... 10,000 28,906
Hong Kong Telecommunications Ltd. (Information Technology)........... 591,489 1,025,084
Hongkong & Shanghai Hotels Ltd. (Information & Entertainment)........ 68,000 135,437
Hopewell Holdings Ltd. (Real Estate)................................. 228,000 150,388
Hutchison Whampoa Ltd. (Multi-industry).............................. 189,000 1,460,521
Hysan Development Co., Ltd. (Real Estate)............................ 56,000 214,020
Johnson Electric Holdings Ltd. (Industrial & Commercial)............. 22,000 55,626
Melco International Development Ltd. (Consumer Staples).............. 2,500 824
Miramar Hotel & Investment Co., Ltd. (Information & Entertainment)... 31,000 60,741
New World Development Co., Ltd. (Real Estate)........................ 81,712 552,180
Oriental Press Group (Information & Entertainment)................... 76,000 42,757
Peregrine Investment Holdings Ltd. (Finance)......................... 21,000 38,839
Shangri-La Asia Ltd. (Information & Entertainment)................... 58,000 91,516
Shun Tak Holdings Ltd. (Industrial & Commercial)..................... 88,000 61,459
South China Morning Post Ltd. (Information & Entertainment).......... 100,000 91,180
Stelux Holdings International Ltd. (Consumer Discretionary).......... 56,000 13,326
</TABLE>

- ---------------------

76
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HONG KONG (continued)
Sun Hung Kai Properties Ltd. (Real Estate)........................... 123,000 $ 1,527,160
Swire Pacific Ltd., Class A (Multi-industry)......................... 84,000 795,784
Television Broadcasting Ltd. (Information & Entertainment)........... 23,000 88,347
Wharf Holdings Ltd. (Real Estate).................................... 116,000 600,103
Wing Lung Bank Ltd. (Finance)........................................ 8,168 54,140
Winsor Industrial Corp., Ltd. (Consumer Discretionary)............... 18,500 4,379
Winsor Properties Holdings Ltd. (Real Estate)+....................... 9,250 13,937
-------------
10,834,620
-------------
INDONESIA -- 0.0%
PT Lippo Bank alien (Finance)........................................ 2,000 3,241
PT Polysindo Eka Perkasa alien (Consumer Discretionary)+............. 14,000 7,463
-------------
10,704
-------------
ITALY -- 3.8%
Acciaierie & Ferriere Lombarde (Materials)........................... 7,000 25,004
Assicurazione Generali SpA (Finance)................................. 31,010 623,903
Banca Commerciale Italiana SpA (Finance)............................. 45,200 82,889
Banco Ambrosiano Veneto SpA (Finance)................................ 17,900 39,792
Benetton Group SpA (Consumer Discretionary).......................... 7,825 99,571
Burgo (Cartiere) SpA (Materials)..................................... 5,700 27,260
Cogefar-Impresit SpA (Industrial & Commercial)+...................... 10,000 7,988
Credito Italiano SpA (Finance)....................................... 88,500 96,910
Edison SpA (Utilities)............................................... 24,000 153,092
ENI SpA (Energy)..................................................... 283,000 1,489,719
Fiat SpA (Consumer Discretionary).................................... 113,200 330,800
Fiat SpA nonconvertible (Consumer Discretionary)..................... 27,700 45,224
Gilardini SpA (Industrial & Commercial).............................. 15,000 17,365
Istituto Bancario San Paolotorno (Finance)........................... 30,800 193,014
Istituto Mobiliare Italiano (Finance)................................ 22,200 186,495
Istituto Nazionale Delle Asazioni SpA (Finance)...................... 139,700 194,444
Italcementi Fabbriche SpA (Materials)................................ 9,550 55,784
Italcementi Fabbriche SpA nonconvertible (Materials)................. 5,150 12,808
Italgas-Societa Itailiana per il Gas SpA (Utilities)................. 22,900 95,168
La Rinascente Per L'Eserciz Grandi Magazzini SpA
(Consumer Discretionary)........................................... 9,000 52,245
Mediaset SpA (Information & Entertainment)+.......................... 43,000 205,930
Mediobanca SpA (Finance)............................................. 16,200 93,292
Montedison SpA (Multi-industry)+..................................... 149,650 106,022
Montedison SpA nonconvertible (Multi-industry)+...................... 37,100 22,515
Olivetti Group (Information Technology)+............................. 125,500 44,125
Parmalat Finanziar (Finance)......................................... 52,920 82,909
Pirelli SpA (Consumer Discretionary)................................. 64,000 116,943
Riunione Adriatica de Sicur (Finance)................................ 11,725 116,016
Saffa SpA (Materials)+............................................... 1,300 2,277
Sasib SpA (Industrial & Commercial).................................. 5,400 17,098
Sirti SpA (Consumer Discretionary)................................... 9,600 58,071
SNIA BPD SpA (Multi-industry)........................................ 23,000 22,606
Societa Assicuratrice Industriale SpA (Finance)...................... 4,950 43,118
Telecome Italia Mobile SpA (Information Technology).................. 237,900 559,460
Telecome Italia SpA (Information Technology)......................... 232,500 547,528
Telecome Italia SpA nonconvertible (Information Technology).......... 56,000 102,879
-------------
5,970,264
-------------
JAPAN -- 32.9%
Advantest Corp. (Information Technology)............................. 3,200 136,541
Ajinomoto Co., Inc. (Consumer Staples)............................... 52,000 588,938
Aoki Corp. (Industrial & Commercial)+................................ 26,000 67,111
Aoyama Trading Co., Ltd. (Consumer Discretionary).................... 2,600 73,960
Asahi Breweries Ltd. (Consumer Staples).............................. 26,000 278,490
</TABLE>

---------------------

77
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (continued)
Asahi Chemical Industry Co., Inc. (Materials)........................ 78,000 $ 512,239
Asahi Glass Co., Ltd. (Materials).................................... 74,000 753,644
Bridgestone Corp. (Industrial & Commercial).......................... 26,000 479,368
Canon, Inc. (Information Technology)................................. 39,000 821,773
Casio Computer Co. (Information Technology).......................... 16,000 129,798
Chiyoda Corp. (Consumer Staples)..................................... 10,000 85,162
Chugai Pharmaceutical Co., Ltd. (Healthcare)......................... 26,000 227,357
Dai Nippon Printing Co., Ltd. (Industrial & Commercial).............. 52,000 949,605
Daiei, Inc. (Consumer Discretionary)................................. 36,000 297,735
Daikin Industries Ltd. (Consumer Staples)............................ 26,000 241,967
Daiwa House Industry Co., Ltd. (Consumer Discretionary).............. 26,000 360,667
Daiwa Securities Co., Ltd. (Finance)................................. 52,000 561,545
Ebara Corp. (Industrial & Commercial)................................ 18,000 252,853
Fanuc Ltd. (Information Technology).................................. 11,100 361,554
Fuji Photo Film Co., Ltd. (Materials)................................ 20,000 626,866
Fujitsu Ltd. (Information Technology)................................ 84,000 803,863
Furukawa Electric Co., Ltd. (Industrial & Commercial)................ 43,000 225,382
Hankyu Corp. (Industrial & Commercial)............................... 52,000 262,968
Hazama Corp. (Consumer Staples)...................................... 26,000 86,286
Hitachi Ltd. (Information Technology)................................ 130,000 1,209,833
Honda Motor Co., Ltd. (Consumer Discretionary)....................... 41,000 1,209,482
Industrial Bank of Japan Ltd. (Finance).............................. 240 4,741
Ito-Yokado Co. (Consumer Discretionary).............................. 17,000 858,209
Japan Airlines Co., Ltd. (Information & Entertainment)+.............. 105,000 613,038
Japan Energy Corp. (Energy).......................................... 66,000 214,399
Jusco Co., Ltd. (Consumer Discretionary)............................. 21,000 682,177
Kajima Corp. (Industrial & Commercial)............................... 52,000 415,452
Kansai Electric Power Co., Inc. (Utilities).......................... 27,800 580,895
KAO Corp. (Consumer Staples)......................................... 48,000 556,277
Kawasaki Steel Corp. (Materials)..................................... 134,000 420,000
Kinki Nippon Railway Co., Ltd. (Industrial & Commercial)............. 78,900 516,764
Kirin Brewery Co., Ltd. (Consumer Staples)........................... 52,000 525,022
Komatsu Ltd. (Industrial & Commercial)............................... 52,000 437,823
Kubota Ltd. (Industrial & Commercial)................................ 78,000 443,073
Kumagai Gumi Co., Ltd. (Consumer Discretionary)...................... 52,000 147,006
Kyocera Corp. (Information Technology)............................... 8,000 514,135
Kyowa Hakko Kogyo Co., Ltd. (Materials).............................. 26,000 219,140
Marubeni Corp. (Consumer Discretionary).............................. 78,000 352,678
Marui Co., Ltd. (Consumer Discretionary)............................. 16,000 303,424
Matsushita Electric Industrial Co., Ltd. (Information Technology).... 78,000 1,349,078
Mitsubishi Chemical Corp. (Materials)................................ 78,000 295,154
Mitsubishi Corp. (Consumer Discretionary)............................ 73,000 846,005
Mitsubishi Electric Corp. (Information Technology)................... 92,000 529,061
Mitsubishi Estate Co., Ltd. (Real Estate)............................ 56,000 707,989
Mitsubishi Heavy Industrial Ltd. (Industrial & Commercial)........... 143,000 1,167,603
Mitsubishi Materials Corp. (Materials)............................... 53,000 237,313
Mitsui & Co. (Materials)............................................. 78,000 662,897
Mitsui Engineering & Shipbuilding Co., Ltd. (Industrial &
Commercial)+....................................................... 52,000 128,288
Mitsui Fudosan Co., Ltd. (Real Estate)............................... 42,000 497,805
Mitsukoshi Ltd. (Consumer Discretionary)............................. 29,000 253,336
Murata Manufacturing Co. (Industrial & Commercial)................... 10,000 341,528
NEC Corp. (Information Technology)................................... 62,000 751,185
New Oji Paper Co., Ltd. (Information & Entertainment)................ 49,000 350,615
NGK Insulators Ltd. (Industrial & Commercial)........................ 26,000 264,794
Nippon Express Co., Ltd. (Industrial & Commercial)................... 51,000 388,657
Nippon Fire & Marine Insurance Co., Ltd. (Finance)................... 26,000 140,843
Nippon Light Metal Co., Ltd. (Materials)............................. 25,000 114,794
Nippon Meat Packers, Inc. (Consumer Staples)......................... 26,000 340,123
Nippon Oil Co., Ltd. (Energy)........................................ 78,000 440,334
</TABLE>

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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (continued)
Nippon Steel Corp. (Materials)....................................... 290,000 $ 875,856
Nippon Yusen Kabushiki Kaish (Industrial & Commercial)............... 78,000 373,222
Nippondenso Co., Ltd. (Industrial & Commercial)...................... 26,000 604,917
Nissan Motor Co., Ltd. (Consumer Discretionary)...................... 99,000 703,169
NKK Corp. (Materials)+............................................... 153,000 376,119
Nomura Securities International, Inc. (Finance)...................... 78,000 1,314,838
Odakyu Electric Railway Co., Ltd. (Industrial & Commercial).......... 52,600 324,190
Oji Paper Co. (Materials)+........................................... 3,000 21,466
Osaka Gas Co., Ltd. (Utilities)...................................... 116,000 357,471
Penta Ocean Construction Co., Ltd. (Industrial & Commercial)......... 26,000 132,853
Pioneer Electronic NV (Information Technology)....................... 8,000 172,081
Rohm Co. (Information Technology).................................... 2,000 122,915
Sankyo Co., Ltd. (Healthcare)........................................ 26,000 696,225
Sanyo Electric Co., Ltd. (Information Technology).................... 78,000 365,004
Secom Co. (Information Technology)................................... 6,000 361,896
Sega Enterprises Ltd. (Consumer Discretionary)....................... 5,100 199,701
Sekisui House Ltd. (Consumer Discretionary).......................... 26,000 278,490
Sharp Corp. (Information Technology)................................. 52,000 812,643
Shimano, Inc. (Industrial & Commercial).............................. 7,000 118,613
Shimizu Corp. (Consumer Discretionary)............................... 37,000 308,604
Shin Etsu Chemical Co., Ltd. (Materials)............................. 11,200 204,530
Shiseido Co., Ltd. (Healthcare)...................................... 11,000 132,309
Showa Denko KK (Materials)+.......................................... 52,000 130,114
Sony Corp. (Information Technology).................................. 12,400 793,644
Sumitomo Chemical Co., Ltd. (Materials).............................. 105,000 457,243
Sumitomo Corp. (Consumer Discretionary).............................. 52,000 440,562
Sumitomo Electric Industries Ltd. (Industrial & Commercial).......... 35,000 491,659
Sumitomo Forestry Co., Ltd. (Materials).............................. 11,000 149,693
Sumitomo Metal Industries Ltd. (Materials)........................... 183,000 486,822
Sumitomo Metal Mining Co., Ltd. (Materials).......................... 25,000 183,275
Sumitomo Osaka Cement Co., Ltd. (Materials).......................... 26,000 98,156
Taisei Corp. (Consumer Discretionary)................................ 52,000 288,990
Takeda Chemical Industries Ltd. (Healthcare)......................... 40,000 783,143
Teijin Ltd. (Consumer Discretionary)................................. 52,000 247,902
Tobu Railway Co., Ltd. (Industrial & Commercial)..................... 52,000 288,990
Tohoku Electric Power Co., Inc. (Utilities).......................... 18,700 382,537
Tokio Marine & Fire Insurance Co., Ltd. (Finance).................... 78,000 862,862
Tokyo Dome Corp. (Industrial & Commercial)........................... 12,000 249,693
Tokyo Electric Power Co., Inc. (Utilities)........................... 48,500 1,094,337
Tokyo Ltd. (Information Technology).................................. 6,000 171,203
Tokyo Gas Co. Ltd. (Utilities)....................................... 76,000 224,197
Tokyu Corp. (Industrial & Commercial)................................ 52,000 346,971
Toppan Printing Co., Ltd. (Information & Entertainment).............. 36,000 474,100
Toray Industries, Inc. (Materials)................................... 78,000 502,651
Toto Ltd. (Materials)................................................ 26,000 340,123
Toyobo Co., Ltd. (Consumer Discretionary)............................ 52,000 163,898
Toyota Motor Corp. (Consumer Discretionary).......................... 121,000 3,303,863
Ube Industries Ltd. (Materials)...................................... 52,000 162,529
Yamaichi Securities Co., Ltd. (Finance).............................. 52,000 274,381
-------------
51,467,292
-------------
KOREA -- 0.7%
Cho Hung Bank (Finance)+............................................. 3,880 30,518
Commerce Bank Korea (Finance)+....................................... 3,480 24,013
Daewoo Corp. (Industrial & Commercial)+.............................. 2,690 22,326
Daewoo Heavy Industries (Industrial & Commercial)+................... 8,430 58,068
Daewoo Securities Co., Ltd. (Finance)+............................... 1,170 19,054
Dong Construction (Industrial & Commercial)+......................... 860 21,994
Hanil Bank (Finance)+................................................ 3,960 26,179
</TABLE>

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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
KOREA (continued)
Hyundai Motor Co. (Consumer Discretionary)+.......................... 950 $ 31,818
Hyundai, Engineering & Construction Co. (Industrial & Commercial)+... 1,170 32,880
Korea Electric Power Corp. (Utilities)+.............................. 11,920 381,060
Korea First Bank (Finance)+.......................................... 3,580 20,730
Korea Mobile Telecommunications Corp. (Information Technology)+...... 90 89,296
LG Chemicals (Materials)+............................................ 1,840 20,643
Pohang Iron & Steel Co., Ltd. (Materials)+........................... 2,230 146,250
Samsung Co. (Information Technology)+................................ 1,400 18,747
Samsung Disposal Devices (Information Technology)+................... 590 37,606
Samsung Electronic (Information Technology)+......................... 1,660 125,824
Tongyang Cement (Materials)+......................................... 230 4,772
Yukong Ltd. (Energy)+................................................ 1,756 47,338
-------------
1,159,116
-------------
MALAYSIA -- 0.0%
Malaysian Oxygen Bhd (Materials)..................................... 2,000 10,210
Metroplex Bhd (Real Estate).......................................... 20,000 25,643
Public Bank Bhd (Finance)............................................ 2,333 4,985
-------------
40,838
-------------
NETHERLANDS -- 2.4%
ABN AMRO Holdings NV (Finance)....................................... 4,810 311,591
Akzo Nobel NV (Materials)............................................ 1,175 155,981
Elsevier NV (Consumer Discretionary)................................. 11,600 197,785
Getronics NV (Information Technology)+............................... 1,800 48,228
Heineken NV (Consumer Staples)....................................... 600 107,696
ING Groep NV (Finance)............................................... 10,791 377,995
KLM Royal Dutch Air Lines NV (Information & Entertainment)........... 1,294 33,395
Koninlijke Ahold NV (Consumer Discretionary)......................... 1,575 35,897
Koninlijke KNP BT (Materials)........................................ 1,925 120,459
Koninlijke PTT Nederland NV (Information Technology)................. 7,588 284,280
Nedlloyd Groep NV (Industrial & Commercial).......................... 350 8,891
Philips Electronics NV (Information Technology)...................... 5,050 204,132
Royal Dutch Petroleum Co. (Energy)................................... 7,900 1,332,320
Stork NV (Industrial & Commercial)+.................................. 425 14,123
Unilever NV CVA (Consumer Staples)................................... 2,400 415,334
Wolters Kluwer NV (Information & Entertainment)+..................... 1,050 137,317
-------------
3,785,424
-------------
PORTUGAL -- 0.1%
Banco Portugues do Atlantico SA (Finance)+........................... 8,700 137,307
-------------
SINGAPORE -- 4.7%
Amcol Holdings Ltd. (Consumer Staples)(1)............................ 17,000 31,758
City Developments Ltd. (Real Estate)................................. 62,000 548,164
Cycle & Carriage Ltd. (Consumer Discretionary)....................... 15,000 170,053
DBS Land Ltd. (Real Estate).......................................... 75,000 267,380
Development Bank of Singapore alien (Finance)........................ 52,000 671,087
First Capital Corp., Ltd. alien (Real Estate)........................ 19,000 54,189
Fraser & Neave Ltd. alien (Consumer Staples)......................... 24,800 258,168
Hai Sun Hup Group Ltd. alien (Finance)............................... 31,000 22,324
Hotel Properties Ltd. alien (Real Estate)............................ 36,000 59,551
Inchcape Bhd alien (Multi-industry).................................. 15,000 50,053
Jurong Shipyard Ltd. alien (Industrial & Commercial)................. 11,000 53,725
Keppel Corp. Ltd. (Industrial & Commercial).......................... 42,000 326,417
NatSteel Ltd. (Materials)............................................ 32,000 66,624
Neptune Orient Lines Ltd. (Industrial & Commercial).................. 64,000 55,216
Overseas Chinese Banking Corp., Ltd. alien (Finance)................. 76,779 930,655
Overseas Union Enterprise Ltd. (Information & Entertainment)......... 10,000 49,198
Parkway Holdings Ltd. alien (Real Estate)............................ 25,000 94,474
</TABLE>

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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
SINGAPORE (continued)
Robinson & Co., Ltd. alien (Consumer Discretionary).................. 7,000 $ 30,196
Shangri-La Hotel Ltd. alien (Information & Entertainment)............ 14,000 49,911
Singapore Airlines Ltd. alien (Information & Entertainment).......... 99,000 931,765
Singapore Press Holdings Ltd. alien (Information & Entertainment).... 26,800 506,381
Singapore Tech Industrial Corp. (Industrial & Commercial)............ 58,000 140,606
Singapore Telecommunications Ltd. alien (Information Technology)..... 481,000 1,118,046
Straits Trading Co., Ltd. (Materials)................................ 31,000 76,036
United Industrial Corp., Ltd. (Multi-industry)....................... 114,000 97,540
United Overseas Bank Ltd. alien (Finance)............................ 70,000 743,672
-------------
7,403,189
-------------
SPAIN -- 3.8%
Acerinox SA (Materials).............................................. 587 74,768
Autopistas Concesionaria Espana SA (Industrial & Commercial)......... 10,920 132,348
Banco Bilbao Vizcaya SA (Finance).................................... 11,550 584,009
Banco Central Hispanoamericano SA (Finance).......................... 8,400 209,125
Banco de Santander SA (Finance)...................................... 8,150 441,663
Corporacion Bancaria de Espana SA (Finance).......................... 6,450 251,447
Corporacion Financiera Alba (Multi-industry)......................... 825 77,634
Corporacion Mapfre SA (Finance)+..................................... 68 3,501
Corporacion Mapfre SA registered (Finance)........................... 1,400 74,031
Dragados & Construcciones SA (Consumer Discretionary)................ 2,950 40,991
Ebro Agricolas, Compania de Alimentacion SA (Industrial &
Commercial)........................................................ 2,450 34,044
Empresa Nacional Celulos SA (Materials).............................. 1,075 13,319
Empresa Nacional de Electricidad SA (Utilities)...................... 13,100 884,862
Ercros SA (Materials)+............................................... 8,700 5,239
Fomento Construcciones Y Contratas SA (Consumer Discretionary)....... 775 65,511
Gas Natural SDG SA (Utilities)....................................... 1,900 394,110
General de Aguas de Barcelona SA (Utilities)......................... 2,234 87,953
Iberdrola SA (Utilities)............................................. 47,600 549,344
Inmobiliaria Metropolitana Vasco Central SA (Real Estate)............ 1,150 41,370
Mapfre Vida SA (Finance)............................................. 13 871
Portland Valderrivas SA (Materials).................................. 375 22,869
Repsol SA (Energy)................................................... 15,400 570,040
Tabacalera SA (Consumer Staples)..................................... 1,900 74,510
Telefonica de Espana SA (Information Technology)..................... 48,100 1,054,531
Union Electrica-Fenosa SA (Utilities)................................ 14,900 112,262
Uralita SA (Materials)............................................... 2,700 20,009
Vallehermoso SA (Real Estate)........................................ 2,200 45,770
Viscofan Industria Navarra (Materials)............................... 1,200 18,527
Zardoya Otis SA (Industrial & Commercial)............................ 485 51,667
-------------
5,936,325
-------------
SWEDEN -- 2.7%
AGA, Series A (Materials)+........................................... 1,500 23,229
AGA, Series B (Materials)+........................................... 4,150 63,341
Asea AB (Industrial & Commercial)+................................... 2,500 289,252
Astra AB (Healthcare)+............................................... 17,800 853,475
Atlas Copco AB (Materials)+.......................................... 5,850 134,150
Autoliv AB (Consumer Discretionary)+................................. 1,700 74,677
Diligentia AB (Real Estate)+......................................... 1,670 26,733
Electrolux AB (Consumer Staples)+.................................... 2,300 134,768
Ericsson (L.M) Telephone Co., Class B (Information Technology)+...... 29,000 893,888
Esselte AB (Materials)+.............................................. 1,100 24,979
Hennes & Mauritz AB, Series B (Consumer Discretionary)+.............. 1,300 187,385
Scanem AB (Industrial & Commercial)+................................. 250 9,605
Securitas AB, Series B (Industrial & Commercial)+.................... 2,800 80,469
Skand Enskilda Bank (Finance)+....................................... 16,700 155,422
Skandia Foersaekrings AB (Finance)+.................................. 3,600 102,656
Skanska AB (Industrial & Commercial)+................................ 3,900 172,479
</TABLE>

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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
SWEDEN (continued)
SKF AB Series B (Materials)+......................................... 3,800 $ 80,633
Stadshyotek AB (Finance)+............................................ 4,000 119,126
Stora Kopparbergs (Materials)+....................................... 9,650 132,200
Svenska Cellulosa AB (Materials)+.................................... 6,000 128,656
Svenska Handelsbank, Series A (Finance)+............................. 6,400 175,353
Swedish Match Co. (Consumer Staples)+................................ 14,800 48,484
Trelleborg AB (Materials)+........................................... 4,200 55,036
Volvo AB (Consumer Discretionary)+................................... 12,300 270,155
-------------
4,236,151
-------------
THAILAND -- 2.3%
Advance Agro PCL alien (Materials)+.................................. 6,000 15,975
Advanced Information Services PCL (Information Technology)........... 15,400 178,477
Bangchak Petroleum PCL alien (Energy)................................ 18,400 18,551
Bangkok Bank PCL alien (Finance)+.................................... 25,600 292,680
Bangkok Land Co. Ltd. (Real Estate)+................................. 11,000 12,813
Bangkok Metropolitan Bank PCL alien (Finance)........................ 51,937 26,944
Bank of Ayudhya PCL alien (Finance).................................. 43,550 137,263
Banpu Coal PCL alien (Materials)..................................... 2,900 57,681
Charoen Pokphand Feedmill Co. PCL alien (Consumer Staples)........... 3,700 14,197
CMIC Finance & Security PCL alien (Finance).......................... 6,700 13,116
Dhana Siam Finance & Securities PCL alien (Finance).................. 23,000 69,791
Finance One PCL alien (Finance)...................................... 16,700 47,732
General Finance & Securities PCL alien (Finance)..................... 7,650 17,971
Italian-Thai Development PCL alien (Industrial & Commercial)......... 16,500 108,534
Jasmine International PCL alien (Information Technology)............. 11,800 26,335
Krung Thai Bank PCL alien (Finance).................................. 96,500 275,817
Land & Houses PCL alien (Consumer Discretionary)..................... 8,500 67,227
MDX PCL alien (Real Estate)+......................................... 4,800 4,088
National Finance & Securities PCL alien (Finance).................... 14,100 32,296
National Petrochemical PCL alien (Materials)......................... 10,900 10,563
One Holding PCL alien (Finance)...................................... 5,600 3,727
Phatra Thanakit PCL alien (Finance).................................. 13,300 49,470
Phatra Thanakit PCL (Finance)+....................................... 2,300 8,555
PTT Exploration & Production PCL alien (Energy)...................... 34,200 503,483
Quality House PCL alien (Consumer Staples)........................... 6,600 6,202
Sahavirya Steel Industries PCL alien (Materials)+.................... 33,900 11,946
Shinawatra Computer & Communication PCL alien (Information
Technology)........................................................ 9,100 120,428
Shinawatra Computer & Communication PCL
(Information Technology)........................................... 4,500 58,495
Shinawatra Satelite PCL alien (Information Technology)+.............. 12,300 17,096
Siam Cement Co. alien (Materials).................................... 8,900 309,438
Siam City Bank PCL alien (Finance)+.................................. 6,050 7,106
Siam City Bank PCL (Finance)+........................................ 5,000 5,824
Siam City Cement PCL alien (Materials)............................... 5,600 37,274
Siam City Cement PCL (Materials)+.................................... 5,700 37,940
Siam Commercial Bank Co., Ltd. alien (Finance)+...................... 11,300 98,220
Siam Makro PCL alien (Consumer Discretionary)+....................... 3,700 16,080
Telecomasia Corp. PCL alien (Utilities)+............................. 147,300 305,667
Telecomasia Corp. PCL (Utilities)+................................... 57,100 118,490
Thai Airways International PCL alien (Information & Entertainment)... 67,000 118,048
Thai Military Bank PCL alien (Finance)............................... 9,100 24,050
Thai Military Bank PCL alien (Finance)+.............................. 4,300 11,028
Thai Telephone & Telecommunications PCL (Information Technology)+.... 23,600 37,423
TPI Polene PCL alien (Materials)+.................................... 4,300 8,671
TPI Polene PCL (Materials)+.......................................... 12,600 25,407
</TABLE>

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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
THAILAND (continued)
United Communication Industries PCL alien (Information Technology)... 15,400 $ 130,240
United Communication Industries PCL (Information Technology)+........ 8,100 65,332
Univest Land PCL (Real Estate)+...................................... 9,300 3,059
-------------
3,566,750
-------------
UNITED KINGDOM -- 12.6%
Abbey National PLC (Finance)......................................... 28,000 327,169
Argyll Group PLC (Consumer Discretionary)............................ 17,672 115,872
Arjo Wiggins Appleton PLC (Materials)................................ 14,800 39,812
Associated British Foods PLC (Consumer Staples)...................... 11,000 81,649
B.A.T. Industries PLC (Multi-industry)............................... 63,699 508,692
Barclays PLC (Finance)............................................... 35,167 604,839
Bass PLC (Consumer Staples).......................................... 23,300 306,919
BICC Group PLC (Industrial & Commercial)............................. 14,818 71,001
Blue Circle Industries PLC (Materials)............................... 27,100 169,489
BOC Group PLC (Materials)............................................ 13,288 197,935
Boots Co. PLC (Consumer Discretionary)............................... 22,100 235,565
BPB Industries PLC (Materials)....................................... 13,700 80,961
British Aerospace PLC (Industrial & Commercial)...................... 10,237 199,129
British Airways PLC (Information & Entertainment).................... 23,512 232,432
British Gas PLC (Utilities).......................................... 89,500 328,026
British Petroleum Co. PLC (Energy)................................... 115,188 1,331,886
British Sky Broadcasting Group PLC (Information & Entertainment)..... 33,700 294,054
British Steel PLC (Materials)........................................ 41,700 116,379
British Telecommunications PLC (Information Technology).............. 119,800 758,317
BTR PLC (Industrial & Commercial).................................... 85,927 345,268
Burmah Castrol PLC (Energy).......................................... 6,200 109,761
Cable & Wireless PLC (Information Technology)........................ 51,409 411,410
Cadbury Schweppes PLC (Consumer Staples)............................. 23,000 197,789
Caradon PLC (Industrial & Commercial)................................ 17,200 68,968
Coats Viyella PLC (Consumer Discretionary)........................... 18,795 42,343
Commercial Union PLC (Finance)....................................... 13,600 150,908
Courtaulds PLC (Materials)........................................... 10,000 66,913
De La Rue PLC (Information & Entertainment).......................... 2,961 28,998
General Electric PLC (Multi-industry)................................ 59,000 369,494
GKN PLC (Industrial & Commercial).................................... 11,750 221,053
Glaxo Wellcome PLC (Healthcare)...................................... 66,100 1,087,127
Granada Group PLC (Information & Entertainment)...................... 15,034 218,888
Grand Metropolitan PLC (Information & Entertainment)................. 43,845 342,401
Great Universal Stores PLC (Consumer Discretionary).................. 24,700 284,872
Guardian Royal Exchange PLC (Finance)................................ 17,141 77,233
Guinness PLC (Consumer Staples)...................................... 45,400 339,660
Hanson PLC (Multi-industry).......................................... 106,182 141,921
Harrisons & Crossfield PLC (Multi-industry).......................... 26,600 58,137
HSBC Holdings PLC (Finance).......................................... 45,868 964,323
Imperial Chemical Industries PLC (Materials)......................... 17,600 228,285
Kingfisher PLC (Consumer Staples).................................... 1 11
Ladbroke Group PLC (Information & Entertainment)..................... 24,473 84,347
Land Securities PLC (Real Estate).................................... 16,400 203,208
LASMO PLC (Energy)+.................................................. 17,000 63,164
Legal & General PLC (Finance)+....................................... 25,600 150,639
Lloyds TSB Group Ltd. (Finance)...................................... 112,138 776,746
Lonrho PLC (Multi-industry).......................................... 17,253 39,014
Marks & Spencer PLC (Consumer Discretionary)......................... 71,000 604,001
MEPC PLC (Real Estate)............................................... 12,500 93,414
National Power PLC (Utilities)....................................... 29,500 228,640
Peninsular & Oriental Steam PLC (Industrial & Commercial)+........... 16,100 160,107
Pilkington PLC (Materials)........................................... 31,243 78,528
Prudential Corp. PLC (Finance)....................................... 40,697 333,554
</TABLE>

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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (continued)
Rank Group PLC (Information & Entertainment)+........................ 17,500 $ 127,984
Redland PLC (Materials).............................................. 12,217 75,997
Reed International PLC (Information & Entertainment)................. 14,700 284,831
Reuters Holdings PLC (Industrial & Commercial)....................... 34,900 424,808
Rexam PLC (Materials)................................................ 11,700 66,486
RMC Group PLC (Materials)............................................ 7,000 116,333
Royal Bank of Scotland Group PLC (Finance)........................... 10,952 96,484
Royal Sun Alliance (Finance)......................................... 28,270 213,166
RTZ Corp. PLC (Materials)............................................ 24,400 410,222
Sainsbury (J.) PLC (Consumer Discretionary).......................... 31,829 200,938
Schroders PLC (Finance).............................................. 4,500 115,753
Scottish Power PLC (Utilities)....................................... 19,628 111,208
Sears PLC (Consumer Discretionary)................................... 40,700 63,637
Sedgwick Group PLC (Finance)......................................... 11,600 24,475
Slough Estates PLC (Real Estate)..................................... 9,400 41,089
Smithkline Beecham PLC (Healthcare).................................. 50,598 697,552
Southern Electric PLC (Utilities).................................... 5,900 69,435
Tarmac PLC (Industrial & Commercial)................................. 28,226 41,997
Taylor Woodrow PLC (Industrial & Commercial)......................... 15,679 39,540
Tesco PLC (Consumer Discretionary)................................... 39,077 223,306
Thames Water PLC (Industrial & Commercial)........................... 14,833 144,016
Thorn EMI PLC (Consumer Discretionary)............................... 10,310 238,163
Thorn PLC (Consumer Discretionary)+.................................. 10,700 49,650
TI Group PLC (Industrial & Commercial)............................... 10,946 102,044
Unilever PLC (Consumer Staples)...................................... 13,900 327,636
United Utilities PLC (Utilities)..................................... 14,032 138,716
Vodafone Group PLC (Information Technology).......................... 66,506 287,917
Zeneca Group PLC (Real Estate)....................................... 18,500 510,087
-------------
19,814,721
-------------
UNITED STATES -- 0.0%
Millenium Chemicals, Inc. (Materials)+............................... 1,251 25,802
-------------
TOTAL COMMON STOCK (cost $139,710,238)............................... 144,732,522
<CAPTION>
-------------
PREFERRED STOCK -- 1.0%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRALIA -- 0.1%
News Corp., Ltd. (Information & Entertainment)....................... 22,668 99,631
-------------
BRAZIL -- 0.5%
Aracruz Celulose SA (Materials)...................................... 9,400 15,106
Banco Bradesco SA (Finance).......................................... 7,215,000 52,733
Banco do Brasil SA (Finance)......................................... 749,000 6,453
Banco Estado de Sao Paulo SA (Finance)............................... 436,000 2,528
Banco Itau SA (Finance).............................................. 86,000 33,717
Cemig Cia Energy MG (Utilities)...................................... 1,115,000 35,943
Centrais Electricas Brasileiras SA (Utilities)....................... 252,000 82,699
Ceval Alimentos SA (Consumer Staples)................................ 330,000 3,239
Companhia Brasileiro de Petroleo Ipiranga (Energy)................... 415,000 5,424
Companhia Cervejaraia Brahma (Consumer Staples)...................... 65,000 38,446
Companhia Energetica de Sao Paulo (Utilities)........................ 28,000 907
Companhia Siderurgica de Tubarao (Materials)......................... 709,000 10,638
Companhia Vale do Rio Doce (Materials)............................... 3,192 67,054
Itausa Investimentos Itau SA (Finance)............................... 31,000 23,107
Klabin Fabricadora (Materials)....................................... 8,000 7,667
Petroleo Brasileiros SA (Energy)..................................... 797,000 109,559
Sadia-Concordia SA (Consumer Staples)................................ 8,000 6,041
</TABLE>

- ---------------------

84
<PAGE> 80
<TABLE>
<CAPTION>
PREFERRED STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
BRAZIL (continued)
Telecomunicacoes Brasileirassa SA (Information Technology)........... 2,969,000 $ 224,759
Telecomunicacoes de Sao Paulo SA (Information Technology)............ 260,000 46,060
Usinas Siderurgicas de Minas Gerais SA (Materials)................... 16,473,000 16,425
-------------
788,505
-------------
GERMANY -- 0.4%
RWE AG (Utilities)................................................... 8,500 312,236
SAP AG (Materials)................................................... 1,640 225,405
-------------
537,641
-------------
ITALY -- 0.0%
Fiat SpA (Consumer Discretionary).................................... 35,500 55,032
-------------
TOTAL PREFERRED STOCK (cost $1,299,685).............................. 1,480,809
-------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 0.0% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FRANCE -- 0.0%
Casino Guichard Perrachon et Cie S.C.A. 4.50% 2001
(Consumer Discretionary)........................................... $ 43,400 17,702
Sodexho SA 6.00% 2004 (Industrial & Commercial)...................... 30,000 5,800
-------------
23,502
-------------
TOTAL BONDS & NOTES (cost $15,026)................................... 23,502

<CAPTION>
RIGHTS -- 0.0%+ SHARES
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HONG KONG -- 0.0%
Hongkong & Shanghai Hotels Ltd. 12/02/96 (Information &
Entertainment)..................................................... 5,667 3,371
-------------
SPAIN -- 0.0%
Aguas de Barcelona 12/18/96 (Consumer Staples)....................... 2,234 1,104
-------------
THAILAND -- 0.0%
One Holding PCL alien 12/02/96 (Finance)............................. 5,600 1,535
-------------
TOTAL RIGHTS (cost $0)............................................... 6,010
-------------

<CAPTION>
WARRANTS -- 0.7%+
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HONG KONG -- 0.0%
Peregrine Investment Holdings Ltd. 5/15/98 (Finance)................. 1,200 396
-------------
BRAZIL -- 0.7%
Banco do Brasil SA, Series A 6/30/01 (Finance)....................... 149,800 246,525
Banco do Brasil SA, Series B 6/30/06 (Finance)....................... 224,700 337,159
Banco do Brasil SA, Series C 6/30/11 (Finance)....................... 374,500 561,931
-------------
1,145,615
-------------
FRANCE -- 0.0%
Casino Guichard Perrachon et Cie S.C.A. 12/31/99 (Consumer
Discretionary)..................................................... 434 4,943
Sodexho SA 6/07/04 (Industrial & Commercial)......................... 6 1,011
-------------
5,954
-------------
</TABLE>

---------------------

85
<PAGE> 81

<TABLE>
<CAPTION>
WARRANTS (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HONG KONG -- 0.0%
Hong Kong & China Gas Co., Ltd. 9/30/97 (Utilities).................. 8,360 $ 5,271
Hysan Development Co., Ltd. 4/30/98 (Real Estate).................... 1,300 992
Oriental Press Group 10/02/98 (Information & Entertainment).......... 7,600 708
-------------
6,971
-------------
INDONESIA -- 0.0%
PT Indah Kiat Pulp & Paper Corp. alien 4/13/01 (Materials)........... 1,653 472
-------------
ITALY -- 0.0%
Mediobanca SpA 11/30/99 (Finance).................................... 650 304
Riunione Adriatica de Sicur 12/31/97 (Finance)....................... 150 220
Riunione Adriatica de Sicur 11/30/97 (Finance)....................... 250 810
-------------
1,334
-------------
MALAYSIA -- 0.0%
Metroplex Bhd 6/20/00 (Real Estate).................................. 1,833 958
-------------
SINGAPORE -- 0.0%
Straits Steamship Land Ltd. 12/12/00 (Multi-industry)................ 4,750 5,317
-------------
THAILAND -- 0.0%
One Holding PCL alien (Finance)...................................... 1,120 0
-------------
TOTAL WARRANTS (cost $12,230)........................................ 1,167,017
-------------
TOTAL INVESTMENT SECURITIES (cost $141,037,179)...................... 147,409,860
-------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 6.9% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 6.9%
Agreement with State Street Bank & Trust Co., bearing interest of
4.75% dated 11/29/96, to be repurchased 12/02/96 in the amount of
$10,821,282 and collateralized by $10,845,000 U.S. Treasury Notes
8.50% due 5/15/97 (cost $10,817,000)............................... $10,817,000 10,817,000
-------------
TOTAL INVESTMENTS --
(cost $151,854,179) 100.8% $158,226,860
Liabilities in excess of other assets -- (0.8) (1,218,467)
------- -------------
NET ASSETS -- 100.0% $157,008,393
======= ==============
</TABLE>

-----------------------------

+ Non-income producing securities

(1) Fair valued security; see Note 2

- ---------------------

86
<PAGE> 82
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
-----------------------------------------------------------------------

<CAPTION>
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DEM 3,444,825 USD 2,300,000 12/27/96 $ 56,327
DEM 213,440 USD 142,000 12/27/96 2,983
DEM 1,825,260 USD 1,200,000 12/27/96 11,178
DEM 12,254,119 USD 8,052,914 01/24/97 57,779
FRF 29,878,780 USD 5,900,000 02/24/97 152,592
FRF 5,948,675 USD 1,180,000 02/24/97 35,728
FRF 3,720,555 USD 725,000 02/24/97 9,323
JPY 242,425,842 USD 2,139,492 12/16/96 5,205
*JPY 122,773,950 USD 1,149,138 12/16/96 71,228
*JPY 294,992,500 USD 2,762,102 12/16/96 172,177
*JPY 47,341,550 USD 417,806 12/16/96 2,164
JPY 484,560,000 USD 4,500,000 12/27/96 226,359
JPY 53,965,000 USD 500,000 12/27/96 24,048
JPY 187,289,000 USD 1,700,000 12/27/96 48,180
JPY 186,889,700 USD 1,670,000 12/27/96 21,701
JPY 289,767,392 USD 2,573,766 01/30/97 7,100
JPY 837,976,008 USD 7,600,000 02/21/97 156,325
NLG 5,371,407 USD 3,190,524 02/10/97 59,960
-----------
1,120,357
-----------
<CAPTION>
GROSS UNREALIZED
DEPRECIATION
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*USD 4,200,000 JPY 465,108,000 12/16/96 $ (116,523)
-----------
Net Unrealized Appreciation.................. $ 1,003,834
===========
</TABLE>

-----------------------------

* Represents open forward foreign currency contracts and
offsetting open forward foreign currency contracts that do not
have additional market risk but have continued counterparty
settlement risk

<TABLE>
<S> <C>
DEM -- Deutsche Mark NLG -- Netherlands Guilder
FRF -- French Franc USD -- United States Dollar
JPY -- Japanese Yen
</TABLE>

See Notes to Financial Statements

---------------------

87
<PAGE> 83

- ---------------------

SUNAMERICA SERIES TRUST
AGGRESSIVE GROWTH PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 90.4% SHARES VALUE
----------------------------------------------------------------------------------------------------

<S> <C> <C>
CONSUMER DISCRETIONARY -- 5.2%
Apparel & Textiles -- 1.9%
Gucci Group NV ADR..................................................... 2,000 $ 146,750
NIKE, Inc., Class B.................................................... 2,000 113,750
North Face, Inc.+...................................................... 2,000 44,250
Reebok International Ltd. ............................................. 7,000 266,000
Tommy Hilfiger Corp.+.................................................. 2,000 108,000

Retail -- 3.3%
Kenneth Cole Productions, Inc., Class A+............................... 10,000 158,750
Neiman Marcus Group, Inc.+............................................. 7,000 243,250
Nu Skin Asia Pacific, Inc., Class A.................................... 10,700 316,988
Tiffany & Co. ......................................................... 5,000 184,375
Woolworth Corp.+....................................................... 10,000 240,000
-------------
1,822,113
-------------
CONSUMER STAPLES -- 1.6%
Food, Beverage & Tobacco -- 0.3%
Northland Cranberries, Inc. ........................................... 5,000 111,250

Household Products -- 1.3%
Samsonite Corp.+....................................................... 11,600 439,350
-------------
550,600
-------------
ENERGY -- 20.1%
Energy Services -- 17.8%
Cooper Cameron, Corp.+................................................. 5,000 328,750
Diamond Offshore Drilling, Inc.+....................................... 2,000 127,500
Falcon Drilling, Inc.+................................................. 10,000 400,000
Flores & Rucks, Inc.+.................................................. 5,000 245,625
Global Marine, Inc.+................................................... 15,200 296,400
Marine Drilling Co., Inc.+............................................. 10,000 158,750
McDermott International, Inc. ......................................... 15,000 266,250
Nabors Industries, Inc.+............................................... 10,000 193,750
Noble Drilling Corp.+.................................................. 18,000 346,500
Patterson Energy, Inc.+................................................ 12,000 333,000
Reading & Bates Corp.+................................................. 15,000 435,000
Seacor Holdings, Inc.+................................................. 9,000 569,250
Transocean Offshore, Inc. ............................................. 4,820 290,405
Trico Marine Services, Inc.+........................................... 25,000 1,062,500
United Meridian Corp.+................................................. 10,000 510,000
UTI Energy Corp.+...................................................... 11,000 342,375
Varco International, Inc.+............................................. 6,400 146,400
Weatherford Enterra, Inc.+............................................. 7,000 213,500

Energy Sources -- 2.3%
American Exploration Co.+.............................................. 15,000 245,625
Arakis Energy Corp.+................................................... 20,000 118,750
KN Energy, Inc. ....................................................... 5,000 203,125
Pogo Producing Co. .................................................... 5,000 220,000
-------------
7,053,455
-------------
</TABLE>

- ---------------------

88
<PAGE> 84

<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 7.8%
Banks -- 0.8%
Long Island Bancorp, Inc. ............................................. 5,867 $ 187,377
PNC Bank Corp. ........................................................ 2,400 94,800

Financial Services -- 5.9%
Aames Financial Corp. ................................................. 2,000 85,750
Alex Brown, Inc. ...................................................... 2,000 120,250
Allmerica Financial Corp. ............................................. 5,000 165,625
Associates First Capital Corp., Class A................................ 5,000 241,875
Bay View Capital Corp. ................................................ 10,000 412,500
Capital One Financial Corp. ........................................... 6,000 216,750
Emergent Group, Inc.+.................................................. 10,000 118,750
Household International, Inc. ......................................... 2,000 189,500
Intermediate Regional Financial Group, Inc. ........................... 9,000 316,125
Metris Cos., Inc.+..................................................... 9,500 223,250

Insurance -- 1.1%
Lawyers Title Corp. ................................................... 7,000 133,000
Penn Treaty American Corp.+............................................ 10,000 242,500
-------------
2,748,052
-------------
HEALTHCARE -- 7.1%
Drugs -- 4.0%
Agouron Pharmaceuticals, Inc.+......................................... 5,000 274,375
Biogen, Inc.+.......................................................... 10,000 382,500
Guilford Pharmaceuticals, Inc. ........................................ 9,600 169,200
Ligand Pharmaceuticals, Inc., Class B+................................. 10,000 120,625
Teva Pharmaceutical Industries Ltd. ADR................................ 10,100 467,125

Health Services -- 2.4%
Genset ADR.+........................................................... 5,000 85,625
HBO & Co. ............................................................. 5,000 284,375
Maxicare Health Plans, Inc.+........................................... 15,000 309,375
NovaCare, Inc.+........................................................ 20,000 170,000

Medical Products -- 0.7%
Boston Scientific Corp.+............................................... 3,000 175,125
Nitinol Medical Technologies, Inc.+.................................... 5,000 54,375
-------------
2,492,700
-------------
INDUSTRIAL & COMMERCIAL -- 7.4%
Aerospace & Military Technology -- 0.8%
Hexcel Corp.+.......................................................... 10,000 181,250
REMEC, Inc.+........................................................... 5,100 97,537

Business Services -- 4.5%
Culligan Water Technologies, Inc.+..................................... 10,000 372,500
Global DirectMail Corp.+............................................... 3,000 135,000
Lason Holdings, Inc.+.................................................. 2,000 39,000
National Data Corp. ................................................... 6,000 239,250
Philip Environmental, Inc. ............................................ 10,000 130,000
Registry, Inc.+........................................................ 5,000 244,375
TeleSpectrum Worldwide, Inc.+.......................................... 15,000 266,250
United States Filter Corp. ............................................ 5,000 171,250

Electrical Equipment -- 0.1%
Thermo Optek Corp.+.................................................... 2,000 24,250
</TABLE>

---------------------

89
<PAGE> 85

<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Multi-Industry -- 2.0%
Rockwell International Corp. .......................................... 5,000 $ 321,250
Tyco International Ltd. ............................................... 7,000 383,250
-------------
2,605,162
-------------
INFORMATION & ENTERTAINMENT -- 5.6%
Broadcasting & Media -- 2.6%
BTG, Inc.+............................................................. 12,200 245,525
Cox Radio, Inc., Class A+.............................................. 4,000 70,000
Mecklermedia Corp.+.................................................... 20,400 413,100
Univision Communications, Inc., Class A+............................... 5,000 198,750

Communication Equipment -- 0.1%
ANADIGICS, Inc.+....................................................... 700 26,250

Entertainment Products -- 0.6%
Panavision, Inc. ...................................................... 10,000 223,750

Leisure & Tourism -- 2.3%
Extended Stay America, Inc.+........................................... 4,000 83,000
HFS, Inc.+............................................................. 2,000 129,500
Mirage Resorts, Inc.+.................................................. 6,000 144,750
Promus Hotel Corp.+.................................................... 5,000 161,250
Sabre Group Holdings, Inc., Class A+................................... 6,300 184,275
Suburban Lodges America, Inc.+......................................... 5,000 86,250
-------------
1,966,400
-------------
INFORMATION TECHNOLOGY -- 31.5%
Communication Equipment -- 2.2%
ADC Telecommunications, Inc.+.......................................... 10,000 362,500
Tellabs, Inc.+......................................................... 10,000 397,500

Computers & Business Equipment -- 8.1%
3Com Corp.+............................................................ 3,000 225,375
Adaptec, Inc.+......................................................... 10,000 372,500
BDM International, Inc.+............................................... 2,000 94,000
Cabletron Systems, Inc.+............................................... 10,000 403,750
Cascade Communications Co.+............................................ 2,000 138,250
Cognos, Inc.+.......................................................... 10,000 380,000
Compaq Computer, Corp.+................................................ 3,000 237,750
Lexmark International Group, Inc., Class A+............................ 15,000 388,125
Quantum Corp.+......................................................... 10,000 267,500
Security Dynamics Technologies, Inc.+.................................. 2,000 82,250
Sun Microsystems, Inc.+................................................ 3,000 174,750
United States Office Products Co.+..................................... 3,100 96,100

Electronics -- 8.8%
Analog Devices, Inc.+.................................................. 5,000 160,625
Chips & Technologies, Inc.+............................................ 20,000 421,250
Concord EFS, Inc. ..................................................... 10,000 291,250
Cymer, Inc.+........................................................... 10,000 332,500
Diebold, Inc. ......................................................... 4,105 244,761
ESS Technology, Inc.+.................................................. 10,000 197,500
Integrated Device Technology, Inc.+.................................... 20,000 248,750
KLA Instruments, Corp.+................................................ 10,000 355,000
Linear Technology Corp. ............................................... 2,000 94,250
LSI Logic Corp.+....................................................... 5,000 150,625
Maxim Integrated Products, Inc.+....................................... 2,000 92,750
Micrel, Inc.+.......................................................... 3,000 75,375
Novellus Systems, Inc.+................................................ 5,000 287,500
Vitesse Semiconductor Corp.+........................................... 3,000 143,250
</TABLE>

- ---------------------

90
<PAGE> 86
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Software -- 7.1%
BMC Software, Inc.+.................................................... 2,000 $ 87,000
Cadence Design Systems, Inc.+.......................................... 5,000 199,375
Cisco Systems, Inc.+................................................... 3,000 203,625
Geoworks+.............................................................. 1,000 22,000
Ingram Micro, Inc., Class A+........................................... 10,000 246,250
Microsoft Corp.+....................................................... 2,000 313,750
Parametric Technology Corp.+........................................... 5,000 271,875
Rational Software Corp.+............................................... 5,000 176,250
Segue Software, Inc.+.................................................. 20,000 255,000
Trusted Information Systems, Inc.+..................................... 3,000 36,000
Veritas DGC, Inc.+..................................................... 10,000 213,750
Veritas Software Co. .................................................. 3,000 139,125
Viasoft, Inc.+......................................................... 6,000 271,500
Videoserver, Inc.+..................................................... 1,050 51,450

Telecommunications -- 5.3%
Lucent Technologies, Inc. ............................................. 10,000 512,500
Pacific Gateway Exchange, Inc.+........................................ 10,000 281,250
PairGain Technologies, Inc.+........................................... 4,300 274,662
Telco Systems, Inc.+................................................... 10,000 178,750
Teleport Communications Group, Class A+................................ 10,000 331,250
Verilink Corp.+........................................................ 10,000 300,000
-------------
11,081,098
-------------
MATERIALS -- 0.9%
Chemicals -- 0.9%
Nalco Chemical Co. .................................................... 3,000 114,375
Praxair, Inc. ......................................................... 4,000 194,500
-------------
308,875
-------------
REAL ESTATE -- 2.5%
Real Estate Companies -- 0.6%
Green Tree Financial Corp. ............................................ 5,000 209,375

Real Estate Investment Trusts -- 1.9%
Bay Apartment Communities, Inc. ....................................... 5,000 162,500
Innkeepers USA Trust................................................... 20,000 250,000
Starwood Lodging Trust+................................................ 5,000 238,750
-------------
860,625
-------------
UTILITIES -- 0.7%
Gas & Pipeline Utilities -- 0.7%
El Paso Natural Gas Co. ............................................... 5,000 250,000
-------------
TOTAL COMMON STOCK (cost $28,763,635).................................. 31,739,080
-------------

<CAPTION>
WARRANTS -- 1.0%+
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY -- 1.0%
Electronics -- 1.0%
Intel Corp. 3/14/98 (cost $235,232).................................... 4,000 351,000
-------------
TOTAL INVESTMENT SECURITIES (cost $28,998,867)......................... 32,090,080
-------------
</TABLE>

---------------------

91
<PAGE> 87

<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 8.0% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 8.0%
Joint Repurchase Agreement Account (Note 3)
(cost $2,812,000).................................................... $2,812,000 $ 2,812,000
-------------
TOTAL INVESTMENTS --
(cost $31,810,867) 99.4% 34,902,080
Other assets less liabilities -- 0.6 222,222
----- -------------
NET ASSETS -- 100.0% $35,124,302
===== =============
</TABLE>

-----------------------------

+ Non-income producing securities

ADR -- American Depository Receipt

See Notes to Financial Statements

- ---------------------

92
<PAGE> 88

(This page intentionally left blank)

---------------------

93
<PAGE> 89

- ---------------------

SUNAMERICA SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1996
<TABLE>
<CAPTION>
CASH GLOBAL CORPORATE HIGH-YIELD
MANAGEMENT BOND BOND BOND
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*........................... $ -- $55,068,056 $34,813,533 $110,313,939
Short-term securities*..................................... 85,399,799 13,051,000 2,024,417 --
Repurchase agreements (cost equals market)................. 5,615,000 -- -- 3,610,000
Cash....................................................... 626 486 182 --
Foreign currency........................................... -- 179 -- --
Receivables for --
Dividends and accrued interest............................ 682,900 1,077,171 688,681 1,348,838
Fund shares sold.......................................... 206,746 36,029 34,595 171,705
Foreign currency contracts................................ -- 5,516,556 -- --
Sales of investments...................................... -- 2,524,512 742,225 --
Variation margin on futures contracts..................... -- -- -- --
Deferred organizational expenses........................... 8,392 4,639 4,639 4,493
Prepaid expenses........................................... 5,647 2,155 1,081 3,406
Unrealized appreciation on forward foreign currency
contracts................................................. -- 755,339 -- --
Due from adviser........................................... -- -- -- --
------------------------------------------------------
91,919,110 78,036,122 38,309,353 115,452,381
------------------------------------------------------
LIABILITIES:
Payables for --
Fund shares redeemed...................................... 583,518 26,851 18,021 31,652
Management fees........................................... 50,500 39,696 20,956 61,082
Foreign currency contracts................................ -- 5,525,813 -- --
Purchases of investments.................................. -- 3,752,561 1,042,639 2,000,000
Other accrued expenses..................................... 38,296 32,202 20,330 30,723
Unrealized depreciation on forward foreign currency
contracts................................................. -- 437,582 -- --
Due to custodian bank...................................... -- -- -- 99,831
------------------------------------------------------
672,314 9,814,705 1,101,946 2,223,288
------------------------------------------------------
NET ASSETS................................................. $91,246,796 $68,221,417 $37,207,407 $113,229,093
======================================================
Shares of beneficial interest outstanding
(unlimited shares authorized)............................. 8,479,746 5,984,546 3,354,369 10,252,646
Net asset value per share.................................. $10.76 $11.40 $11.09 $11.04
======================================================
COMPOSITION OF NET ASSETS:
Capital paid in............................................ $84,932,639 $61,387,868 $34,823,040 $107,922,671
Accumulated undistributed net investment income............ 6,322,183 4,377,089 2,004,899 8,882,962
Accumulated undistributed net realized gain (loss) on
investments, future contracts and options contracts....... (1,609) 91,471 (779,651) (8,469,821)
Unrealized appreciation (depreciation) on investments...... (6,417) 2,040,685 1,159,119 4,893,281
Unrealized foreign exchange gain (loss) on other assets and
liabilities............................................... -- 324,304 -- --
Unrealized appreciation on futures contracts............... -- -- -- --
------------------------------------------------------
$91,246,796 $68,221,417 $37,207,407 $113,229,093
======================================================
---------------
* Cost
Investment securities..................................... $ -- $53,027,371 $33,656,304 $105,420,658
======================================================
Short-term securities..................................... $85,406,216 $13,051,000 $ 2,022,527 $ --
======================================================

<CAPTION>
BALANCED/
WORLDWIDE PHOENIX
HIGH SUNAMERICA INVESTMENT
INCOME BALANCED COUNSEL
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value*........................... $43,004,340 $ 8,382,188 $65,078,152
Short-term securities*..................................... 1,672,625 -- 10,481,073
Repurchase agreements (cost equals market)................. 4,207,000 1,605,000 --
Cash....................................................... 12,411 2,409 1,084
Foreign currency........................................... 47,598 -- --
Receivables for --
Dividends and accrued interest............................ 826,307 20,558 238,833
Fund shares sold.......................................... 197,951 23,328 139,720
Foreign currency contracts................................ -- -- --
Sales of investments...................................... 1,833,978 215,415 209,468
Variation margin on futures contracts..................... -- -- --
Deferred organizational expenses........................... -- -- --
Prepaid expenses........................................... 1,489 214 1,881
Unrealized appreciation on forward foreign currency
contracts................................................. -- -- --
Due from adviser........................................... -- -- --
--------------------------------------
51,803,699 10,249,112 76,150,211
--------------------------------------
LIABILITIES:
Payables for --
Fund shares redeemed...................................... 10,417 965 (6,633)
Management fees........................................... 37,932 5,263 38,201
Foreign currency contracts................................ -- -- --
Purchases of investments.................................. 2,528,539 8,000 6,073,213
Other accrued expenses..................................... 22,314 11,090 24,872
Unrealized depreciation on forward foreign currency
contracts................................................. -- -- --
Due to custodian bank...................................... -- -- --
--------------------------------------
2,599,202 25,318 6,129,653
--------------------------------------
NET ASSETS................................................. $49,204,497 $10,223,794 $70,020,558
======================================
Shares of beneficial interest outstanding
(unlimited shares authorized)............................. 3,686,196 918,897 5,136,034
Net asset value per share.................................. $13.35 $11.13 $13.63
======================================
COMPOSITION OF NET ASSETS:
Capital paid in............................................ $40,168,259 $ 9,316,155 $60,805,241
Accumulated undistributed net investment income............ 3,097,896 56,068 1,258,279
Accumulated undistributed net realized gain (loss) on
investments, future contracts and options contracts....... 3,041,491 28,763 2,090,909
Unrealized appreciation (depreciation) on investments...... 2,901,328 822,808 5,866,129
Unrealized foreign exchange gain (loss) on other assets and
liabilities............................................... (4,477) -- --
Unrealized appreciation on futures contracts............... -- -- --
--------------------------------------
$49,204,497 $10,223,794 $70,020,558
======================================
---------------
* Cost
Investment securities..................................... $40,068,547 $ 7,559,380 $59,211,897
======================================
Short-term securities..................................... $ 1,707,090 $ -- $10,481,199
======================================
</TABLE>

See Notes to Financial Statements

- ---------------------

94
<PAGE> 90
<TABLE>
<CAPTION>
ASSET GROWTH- FEDERATED VENTURE
ALLOCATION UTILITY INCOME VALUE VALUE
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*............... $295,590,649 $6,089,127 $305,430,493 $11,351,546 $470,817,990
Short-term securities*........................ 10,172,234 335,000 19,301,187 964,000 45,662,541
Repurchase agreements (cost equals market)..... 31,386,000 -- -- -- --
Cash........................................... 604 481 3,993,576 941 42,167
Foreign currency............................... -- 156 -- -- --
Receivables for--
Dividends and accrued interest................ 1,976,320 24,086 454,314 25,821 580,531
Fund shares sold............................... 403,055 31,422 510,742 191,156 1,291,724
Foreign currency contracts..................... -- 27,262 -- -- --
Sales of investments........................... 19,577,992 -- -- -- --
Variation margin on futures contracts.......... 125,892 -- 51,750 -- --
Deferred organizational expenses............... 4,639 -- 4,493 -- --
Prepaid expenses............................... 8,641 124 8,062 208 11,793
Unrealized appreciation on forward foreign
currency contracts............................ -- -- -- -- --
Due from adviser............................... -- 2,048 -- -- --
---------------------------------------------------------------------
359,246,026 6,509,706 329,754,617 12,533,672 518,406,746
---------------------------------------------------------------------
LIABILITIES
Payables for --
Fund shares redeemed.......................... 160,177 544 73,430 1,496 265,917
Management fees............................... 157,566 3,589 159,693 6,830 298,344
Foreign currency contracts.................... -- 27,262 -- -- --
Purchases of investments...................... 42,456,796 168,966 3,992,876 52,272 1,325,443
Other accrued expenses......................... 83,061 10,698 65,293 13,546 103,671
Unrealized depreciation on forward foreign
currency contracts............................ -- -- -- -- --
Due to custodian bank.......................... -- -- -- -- --
---------------------------------------------------------------------
42,857,600 211,059 4,291,292 74,144 1,993,375
---------------------------------------------------------------------
NET ASSETS..................................... $316,388,426 $6,298,647 $325,463,325 $12,459,528 $516,413,371
---------------------------------------------------------------------
---------------------------------------------------------------------
Shares of beneficial interest outstanding
(unlimited shares authorized).................. 21,790,902 585,876 19,355,026 1,124,250 30,564,207
Net asset value per share...................... $14.52 $10.75 $16.82 $11.08 $16.90
---------------------------------------------------------------------
---------------------------------------------------------------------
COMPOSITION OF NET ASSETS:
Capital paid in................................ $251,012,742 $5,916,489 $239,798,335 $11,245,757 $412,229,764
Accumulated undistributed net investment
income........................................ 8,660,644 81,475 2,766,743 40,137 3,382,016
Accumulated undistributed net realized gain
(loss on investments, future contracts
and options contracts......................... 19,449,365 12,853 14,863,765 (22,475) 9,681,750
Unrealized appreciation (depreciation) on
investments................................... 36,004,144 287,691 67,072,101 1,196,109 91,119,500
Unrealized foreign exchange gain (loss) on
other assets and liabilities.................. -- 139 -- -- 341
Unrealized appreciation on future contracts.... 1,261,531 -- 962,381 -- --
---------------------------------------------------------------------
---------------------------------------------------------------------
$316,388,426 $6,298,647 $325,463,325 $12,459,528 $516,413,371
---------------------------------------------------------------------
---------------------------------------------------------------------
* Cost
Investment securities.......................... $259,580,687 $5,801,436 $238,355,190 $10,155,437 $379,698,490
---------------------------------------------------------------------
---------------------------------------------------------------------
Short-term securities.......................... $ 10,178,052 $ 335,000 $ 19,304,389 $ 964,000 $ 45,662,541
---------------------------------------------------------------------
---------------------------------------------------------------------

GROWTH/
PHOENIX INTERNATIONAL
ALLIANCE INVESTMENT PROVIDENT GLOBAL DIVERSIFIED
GROWTH COUNSEL GROWTH EQUITIES EQUITIES
---------------------------------------------------------------------
<S> <C>
ASSETS:
Investment securities, at value*............... $379,243,925 $163,462,090 $154,538,664 $239,160,707 $147,409,860
Short-term securities*........................ 1,130,589 22,848,833 -- 10,826,000 --
Repurchase agreements (cost equals market)..... -- -- 6,998,000 -- 10,817,000
Cash........................................... 893 1,900 79 931 543
Foreign currency............................... -- -- -- 183,362 209,589
Receivables for--
Dividends and accrued interest................ 184,116 189,834 67,208 521,766 387,331
Fund shares sold............................... 807,750 104,831 223,222 241,255 525,802
Foreign currency contracts..................... -- -- -- -- 3,441,779
Sales of investments........................... 3,127,265 -- 400,831 520,538 323,521
Variation margin on futures contracts.......... 13,800 -- -- -- --
Deferred organizational expenses............... 4,493 5,069 4,493 4,493 --
Prepaid expenses............................... 8,444 5,299 4,380 6,968 3,989
Unrealized appreciation on forward foreign
currency contracts............................ -- -- -- -- 1,120,357
Due from adviser............................... -- -- -- -- --
---------------------------------------------------------------------
384,521,275 186,617,856 162,236,877 251,466,020 164,239,771
---------------------------------------------------------------------
LIABILITIES
Payables for --
Fund shares redeemed.......................... 172,208 102,648 56,930 67,053 29,170
Management fees............................... 179,786 97,211 103,593 153,805 122,121
Foreign currency contracts.................... -- -- -- 3,431,383
Purchases of investments...................... 2,728,676 -- 1,964,853 4,617,059 3,367,273
Other accrued expenses......................... 73,932 50,419 38,456 146,097 164,908
Unrealized depreciation on forward foreign
currency contracts............................ -- -- -- -- 116,523
Due to custodian bank.......................... -- -- -- -- --
---------------------------------------------------------------------
3,154,602 250,278 2,163,832 4,984,014 7,231,378
---------------------------------------------------------------------
NET ASSETS..................................... $381,366,673 $186,367,578 $160,073,045 $246,482,006 $157,008,393
---------------------------------------------------------------------
---------------------------------------------------------------------
Shares of beneficial interest outstanding
(unlimited shares authorized).................. 20,365,649 12,955,501 10,189,121 16,515,390 13,810,494
Net asset value per share...................... $18.73 $14.39 $15.71 $14.92 $11.37
---------------------------------------------------------------------
---------------------------------------------------------------------
COMPOSITION OF NET ASSETS:
Capital paid in................................ $290,961,176 $141,611,796 $109,285,958 $201,906,166 $144,459,565
Accumulated undistributed net investment
income........................................ 1,193,834 1,322,795 -- 2,209,001 4,077,453
Accumulated undistributed net realized gain
(loss on investments, future contracts
and options contracts......................... 21,987,346 16,104,014 5,451,594 11,975,206 1,101,846
Unrealized appreciation (depreciation) on
investments................................... 66,826,817 27,328,973 45,335,493 30,389,997 6,372,681
Unrealized foreign exchange gain (loss) on
other assets and liabilities.................. -- -- -- 1,636 996,848
Unrealized appreciation on future contracts.... 397,500 -- -- -- --
---------------------------------------------------------------------
---------------------------------------------------------------------
$381,366,673 $186,367,578 $160,073,045 $246,482,006 $157,008,393
---------------------------------------------------------------------
---------------------------------------------------------------------
* Cost
Investment securities.......................... $312,417,108 $136,132,691 $109,203,171 $208,770,710 $141,037,179
---------------------------------------------------------------------
---------------------------------------------------------------------
Short-term securities.......................... $ 1,130,589 $ 22,849,259 $ -- $ 10,826,000 $ --
---------------------------------------------------------------------
---------------------------------------------------------------------

AGGRESSIVE
GROWTH
---------------------------------------------------------------------
ASSETS:
Investment securities, at value*............... $32,090,080
Short-term securities*........................ --
Repurchase agreements (cost equals market)..... 2,812,000
Cash........................................... --
Foreign currency............................... --
Receivables for--
Dividends and accrued interest................ 7,634
Fund shares sold............................... 178,373
Foreign currency contracts..................... --
Sales of investments........................... 148,677
Variation margin on futures contracts.......... --
Deferred organizational expenses............... --
Prepaid expenses............................... 597
Unrealized appreciation on forward foreign
currency contracts............................ --
Due from adviser............................... --
---------------------------------------------------------------------
35,237,361
---------------------------------------------------------------------
LIABILITIES
Payables for --
Fund shares redeemed.......................... 3,918
Management fees............................... 19,189
Foreign currency contracts.................... --
Purchases of investments...................... 30,543
Other accrued expenses......................... 16,658
Unrealized depreciation on forward foreign
currency contracts............................ --
Due to custodian bank.......................... 42,751
---------------------------------------------------------------------
113,059
---------------------------------------------------------------------
NET ASSETS..................................... $35,124,302
---------------------------------------------------------------------
---------------------------------------------------------------------
Shares of beneficial interest outstanding
(unlimited shares authorized).................. 3,389,423
Net asset value per share...................... $10.36
---------------------------------------------------------------------
---------------------------------------------------------------------
COMPOSITION OF NET ASSETS:
Capital paid in................................ $32,699,261
Accumulated undistributed net investment
income........................................ 39,730
Accumulated undistributed net realized gain
(loss on investments, future contracts
and options contracts......................... (705,902)
Unrealized appreciation (depreciation) on
investments................................... 3,091,213
Unrealized foreign exchange gain (loss) on
other assets and liabilities.................. --
Unrealized appreciation on future contracts.... --
---------------------------------------------------------------------
---------------------------------------------------------------------
$35,124,302
---------------------------------------------------------------------
---------------------------------------------------------------------
* Cost
Investment securities.......................... $28,998,867
---------------------------------------------------------------------
---------------------------------------------------------------------
Short-term securities.......................... $ --
---------------------------------------------------------------------
---------------------------------------------------------------------
</TABLE>

95
<PAGE> 91

- ---------------------

SUNAMERICA SERIES TRUST
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1996
<TABLE>
<CAPTION>
BALANCED/
WORLDWIDE PHOENIX
CASH GLOBAL CORPORATE HIGH-YIELD HIGH SUNAMERICA INVESTMENT
MANAGEMENT BOND BOND BOND INCOME BALANCED# COUNSEL
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Income:
Interest......................... $7,122,754 $3,981,095 $2,327,756 $ 9,574,555 $4,274,935 $ 62,733 $1,466,951
Dividends........................ -- -- -- 46,590 15,366 22,547 358,182
----------------------------------------------------------------------------------------
Total income*................ 7,122,754 3,981,095 2,327,756 9,621,145 4,290,301 85,280 1,825,133
----------------------------------------------------------------------------------------
Expenses:
Management fees.................. 694,655 458,390 230,031 638,948 368,821 20,449 354,683
Custodian fees................... 57,365 74,265 53,480 46,245 42,745 14,675 50,550
Reports to investors............. 17,845 9,715 16,635 14,330 5,900 735 8,300
Auditing fees.................... 10,990 10,400 7,245 13,005 8,515 5,350 11,445
Amortization of organizational
expenses....................... 7,192 3,964 3,964 3,832 1,798 -- --
Trustees' fees................... 2,285 1,207 507 1,705 628 74 913
Legal fees....................... 905 145 5,775 700 155 124 940
Interest expense................. -- -- -- 7,414 7,207 -- --
Other expenses................... 4,114 2,324 724 2,944 603 297 682
----------------------------------------------------------------------------------------
Total expenses before
reimbursement................ 795,351 560,410 318,361 729,123 436,372 41,704 427,513
Expenses reimbursed by the
investment adviser........... -- -- -- -- -- (12,492) --
----------------------------------------------------------------------------------------
Net investment income (loss)....... 6,327,403 3,420,685 2,009,395 8,892,022 3,853,929 56,068 1,397,620
----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gain (loss) on
investments.................... (1,609) 845,133 (242,797) 567,983 2,578,602 28,763 2,107,376
Net realized gain (loss) on
futures and options
contracts...................... -- 59,164 (180,880) -- -- -- --
Net realized foreign exchange
gain (loss) on other assets and
liabilities.................... -- 1,545,047 -- -- 785 -- --
Change in unrealized
appreciation/depreciation on
investments.................... (9,491) 1,124,599 647,548 4,227,884 2,512,138 822,808 3,902,857
Change in unrealized foreign
exchange gain/loss on other
assets and liabilities......... -- (253,318) -- -- (4,477) -- --
Change in unrealized
appreciation/depreciation on
futures contracts.............. -- -- (39,889) -- -- -- --
----------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments and
foreign currencies............. (11,100) 3,320,625 183,982 4,795,867 5,087,048 851,571 6,010,233
----------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS........ $6,316,303 $6,741,310 $2,193,377 $13,687,889 $8,940,977 $907,639 $7,407,853
========================================================================================
---------------
* Net of foreign withholding taxes
on interest and dividends of:..... $ -- $ 44,228 $ 500 $ -- $ 994 $ 216 $ 1,389
========================================================================================
</TABLE>

# Commenced operations June 3, 1996
See Notes to Financial Statements

- ---------------------

96
<PAGE> 92
<TABLE>
<CAPTION>
ASSET GROWTH- FEDERATED VENTURE ALLIANCE
ALLOCATION UTILITY# INCOME VALUE# VALUE GROWTH
---------------------------------------------------------------------------------

<S> <C> <C> <C> <C> <C> <C>
Income:
Interest...................................... $ 7,138,642 $ 6,557 $ 624,063 $ 9,153 $ 1,803,954 $ 273,003
Dividends..................................... 3,835,134 94,594 3,790,860 64,547 4,411,641 2,624,079
---------------------------------------------------------------------------------
Total income*............................ 10,973,776 101,151 4,414,923 73,700 6,215,595 2,897,082
---------------------------------------------------------------------------------
Expenses:
Management fees............................... 1,616,647 13,890 1,476,902 23,973 2,305,064 1,522,222
Custodian fees................................ 128,585 15,695 77,065 19,060 152,435 81,580
Reports to investors.......................... 39,430 560 36,565 1,120 51,375 38,740
Auditing fees................................. 32,815 5,030 33,600 5,440 48,620 37,230
Amortization or organizational expenses....... 3,964 -- 3,832 -- -- 3,832
Trustees' fees................................ 4,510 74 4,207 74 5,902 4,522
Legal fees.................................... 3,065 124 3,304 277 5,930 3,850
Interest expense.............................. -- -- -- -- -- --
Other expenses................................ 7,799 289 6,127 296 5,331 5,668
---------------------------------------------------------------------------------
Total expenses before reimbursement...... 1,836,815 35,662 1,641,602 50,240 2,574,657 1,697,644
Expenses reimbursed by the investment
adviser................................. -- (16,216) -- (16,677) -- --
---------------------------------------------------------------------------------
Net investment income (loss)................... 9,136,961 81,705 2,773,321 40,137 3,640,938 1,199,438
=================================================================================

REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments........ 19,730,122 12,853 13,516,427 (22,475) 9,692,354 21,793,902
Net realized gain (loss) on futures and options
contracts..................................... 391,668 -- 1,426,165 -- -- 433,180
Net realized foreign exchange gain (loss) on
other assets and liabilities.................. 89 (230) 29 -- 2,021 --
Change in unrealized appreciation/depreciation
on investment................................. 18,681,439 287,691 42,693,932 1,196,109 75,918,377 46,485,737
Change in unrealized foreign exchange gain/loss
on other assets and liabilities............... -- 139 -- -- 341 --
Change in unrealized appreciation/depreciation
on futures contracts.......................... 1,166,581 -- 962,381 -- -- 300,750
---------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on
investments and foreign currencies............ 39,969,899 300,453 58,598,934 1,173,634 85,613,093 69,013,569
---------------------------------------------------------------------------------

NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................... $49,106,860 $382,158 $61,372,255 $ 1,213,771 $89,254,031 $70,213,007
=================================================================================

* Net of foreign withholding taxes on interest
and dividends of: ............................ $ 11,115 $ 3,735 $ 4,119 $ 564 $ 30,896 $ 3,179
=================================================================================

<CAPTION>
GROWTH/
PHOENIX INTERNATIONAL
INVESTMENT PROVIDENT GLOBAL DIVERSIFIED AGGRESSIVE
COUNSEL GROWTH EQUITIES EQUITIES GROWTH#
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Income:
Interest...................................... $ 1,005,335 $ 432,804 $ 575,056 $ 283,647 $ 104,281
Dividends..................................... 1,524,769 723,018 3,650,127 1,830,322 26,838
-------------------------------------------------------------------
Total income*............................ 2,530,104 1,155,822 4,225,183 2,113,969 131,119
-------------------------------------------------------------------
Expenses:
Management fees............................... 1,072,976 1,073,769 1,627,510 1,025,593 65,277
Custodian fees................................ 72,015 57,725 394,465 563,555 19,145
Reports to investors.......................... 23,460 18,935 32,000 17,420 2,075
Auditing fees................................. 20,405 17,390 26,665 18,000 7,190
Amortization or organizational expenses....... 3,832 3,832 3,832 1,798 --
Trustees' fees................................ 2,882 2,174 3,547 2,122 224
Legal fees.................................... 1,290 1,090 1,880 1,925 333
Interest expense.............................. -- -- -- -- --
Other expenses................................ 5,978 4,362 6,523 2,181 330
-------------------------------------------------------------------
Total expenses before reimbursement...... 1,202,838 1,179,277 2,096,422 1,632,594 94,574
Expenses reimbursed by the investment
adviser................................. -- -- -- -- (3,185)
-------------------------------------------------------------------
Net investment income (loss)................... 1,327,266 (23,455) 2,128,761 481,375 39,730
===================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments........ 16,211,794 8,612,831 12,300,321 1,688,079 (705,902)
Net realized gain (loss) on futures and options
contracts..................................... -- -- -- -- --
Net realized foreign exchange gain (loss) on
other assets and liabilities.................. (510) -- 496,594 5,292,994 --
Change in unrealized appreciation/depreciation
on investment................................. 10,855,474 17,288,052 19,341,166 5,555,457 3,091,213
Change in unrealized foreign exchange gain/loss
on other assets and liabilities............... 21 -- (27,011) (813,250) --
Change in unrealized appreciation/depreciation
on futures contracts.......................... -- -- -- -- --
-------------------------------------------------------------------
Net realized and unrealized gain (loss) on
investments and foreign currencies............ 27,066,779 25,900,883 32,111,070 11,723,280 2,385,311
-------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................... $28,394,045 $25,877,428 $34,239,831 $12,204,655 $2,425,041
===================================================================
* Net of foreign withholding taxes on interest
and dividends of: ............................ $ 13,195 $ 10,805 $ 360,697 $ 247,089 $ 250
===================================================================
</TABLE>

97
<PAGE> 93

- ---------------------

SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED NOVEMBER 30, 1996
<TABLE>
<CAPTION>
CASH GLOBAL CORPORATE HIGH-YIELD
MANAGEMENT BOND BOND BOND
-----------------------------------------------------------------------------------------------------------------

<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......................... $ 6,327,403 $ 3,420,685 $ 2,009,395 $ 8,892,022
Net realized gain (loss) on investments............... (1,609) 845,133 (242,797) 567,983
Net realized gain (loss) on futures and options
contracts............................................ -- 59,164 (180,880) --
Net realized foreign exchange gain (loss) on other
assets and liabilities............................... -- 1,545,047 -- --
Change in unrealized appreciation/depreciation on
investments.......................................... (9,491) 1,124,599 647,548 4,227,884
Change in unrealized foreign exchange gain/loss on
other assets and liabilities......................... -- (253,318) -- --
Change in unrealized appreciation/depreciation on
futures contracts.................................... -- -- (39,889) --
---------------------------------------------------------
Net increase in net assets resulting from
operations........................................... 6,316,303 6,741,310 2,193,377 13,687,889
---------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income................. (4,240,000) (4,060,000) (1,225,000) (7,420,000)
Distribution from net realized gain on investments... (4,750) -- -- --
---------------------------------------------------------
Total dividends and distributions to shareholders..... (4,244,750) (4,060,000) (1,225,000) (7,420,000)
---------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold............................. 615,571,205 26,461,284 20,121,281 89,355,894
Proceeds from shares issued for reinvestment of
dividends and distributions.......................... 4,244,750 4,060,000 1,225,000 7,420,000
Cost of shares repurchased............................ (621,371,905) (24,740,221) (14,581,771) (71,988,357)
---------------------------------------------------------
Net increase (decrease) in net assets resulting from
capital share transactions........................... (1,555,950) 5,781,063 6,764,510 24,787,537
---------------------------------------------------------
TOTAL INCREASE IN NET ASSETS.......................... 515,603 8,462,373 7,732,887 31,055,426

NET ASSETS:
Beginning of period................................... 90,731,193 59,759,044 29,474,520 82,173,667
---------------------------------------------------------
End of period......................................... $ 91,246,796 $ 68,221,417 $ 37,207,407 $113,229,093
=========================================================
---------------
Accumulated undistributed net investment income....... $ 6,322,183 $ 4,377,089 $ 2,004,899 $ 8,882,962
=========================================================
Shares issued and repurchased:
Sold.................................................. 57,928,895 2,437,840 1,891,179 8,529,658
Issued in reinvestment of dividends and
distributions........................................ 408,149 391,137 118,015 744,233
Repurchased........................................... (58,340,347) (2,268,851) (1,379,014) (6,827,580)
---------------------------------------------------------
Net increase (decrease)............................... (3,303) 560,126 630,180 2,446,311
=========================================================

<CAPTION>
BALANCED/
WORLDWIDE PHOENIX
HIGH SUNAMERICA INVESTMENT
INCOME BALANCED# COUNSEL
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......................... $ 3,853,929 $ 56,068 $ 1,397,620
Net realized gain (loss) on investments............... 2,824,669 28,763 2,107,376
Net realized gain (loss) on futures and options
contracts............................................ -- -- --
Net realized foreign exchange gain (loss) on other
assets and liabilities............................... (245,282) -- --
Change in unrealized appreciation/depreciation on
investments.......................................... 2,512,138 822,808 3,902,857
Change in unrealized foreign exchange gain/loss on
other assets and liabilities......................... (4,477) -- --
Change in unrealized appreciation/depreciation on
futures contracts.................................... -- -- --
-----------------------------------------
Net increase in net assets resulting from
operations........................................... 8,940,977 907,639 7,407,853
-----------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income................. (1,700,000) -- (540,000)
Distribution from net realized gain on investments... (100,000) -- (890,000)
-----------------------------------------
Total dividends and distributions to shareholders..... (1,800,000) -- (1,430,000)
-----------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold............................. 48,071,872 11,344,623 44,916,086
Proceeds from shares issued for reinvestment of
dividends and distributions.......................... 1,800,000 -- 1,430,000
Cost of shares repurchased............................ (29,323,432) (2,028,468) (14,731,916)
-----------------------------------------
Net increase (decrease) in net assets resulting from
capital share transactions........................... 20,548,440 9,316,155 31,614,170
-----------------------------------------
TOTAL INCREASE IN NET ASSETS.......................... 27,689,417 10,223,794 37,592,023
NET ASSETS:
Beginning of period................................... 21,515,080 -- 32,428,535
-----------------------------------------
End of period......................................... $ 49,204,497 $10,223,794 $ 70,020,558
=========================================
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

- ---------------------

98
<PAGE> 94
<TABLE>
<CAPTION>
ASSET GROWTH- FEDERATED
ALLOCATION UTILITY# INCOME VALUE

----------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)................................. $ 9,136,961 $ 81,705 $ 2,773,321 $ 40,137
Net realized gain (loss) on investments...................... 19,730,122 12,853 13,516,427 (22,475)
Net realized gain (loss) on futures and options contracts.... 391,668 -- 1,426,165 --
Net realized foreign exchange gain (loss) on other
assets and liabilities...................................... 89 (230) 29 --
Change in unrealized appreciation/depreciation on
investments................................................. 18,681,439 287,691 42,693,932 1,196,109
Change in unrealized foreign exchange gain/loss on
other assets and liabilities................................ -- 139 -- --
Change in unrealized appreciation/depreciation on futures
contracts................................................... 1,166,581 -- 962,381 --
----------------------------------------------------------
Net increase in net assets resulting from operations......... 49,106,860 382,158 61,372,255 1,213,771
----------------------------------------------------------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income........................ (5,505,000) -- (1,680,000) --
Distribution from net realized gain on investments.......... (6,805,000) -- (5,975,000) --
----------------------------------------------------------
Total dividends and distributions to shareholders............ (12,310,000) -- (7,655,000) --
----------------------------------------------------------

CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.................................... 108,836,939 6,090,461 145,602,473 11,583,467
Proceeds from shares issued for reinvestment of dividends
and distributions........................................... 12,310,000 -- 7,655,000 --
Cost of shares repurchased................................... (41,391,763) (173,972) (52,792,476) (337,710)
----------------------------------------------------------
Net increase (decrease) in net assets resulting from capital
share transactions.......................................... 79,755,176 5,916,489 100,464,997 11,245,757
----------------------------------------------------------
TOTAL INCREASE IN NET ASSETS................................. 116,552,036 6,298,647 154,182,252 12,459,528

NET ASSETS:
Beginning of period.......................................... 199,836,390 -- 171,281,073 --
----------------------------------------------------------
End of period................................................ $316,388,426 $6,298,647 $325,463,325 $ 12,459,528
==========================================================

Accumulated undistributed net investment income.............. $ 8,660,644 $ 81,475 $ 2,766,743 $ 40,137
==========================================================
Shares issued and repurchased:
Sold......................................................... 8,296,399 602,909 9,953,598 1,158,140
Issued in reinvestment of dividends and distributions........ 970,055 -- 541,755 --
Repurchased.................................................. (3,164,619) (17,033) (3,630,349) (33,890)
----------------------------------------------------------
Net increase (decrease)...................................... 6,101,835 585,876 6,865,004 1,124,250
==========================================================

<CAPTION>
GROWTH/
PHOENIX
VENTURE ALLIANCE INTERNATIONAL PROVIDENT
VALUE GROWTH COUNSEL GROWTH
----------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)................................. $ 3,640,938 $ 1,199,438 $ 1,327,266 $ (23,455)
Net realized gain (loss) on investments...................... 9,692,354 21,793,902 16,211,794 8,612,831
Net realized gain (loss) on futures and options contracts.... -- 433,180 -- --
Net realized foreign exchange gain (loss) on other
assets and liabilities...................................... 2,021 -- (510) --
Change in unrealized appreciation/depreciation on
investments................................................. 75,918,377 46,485,737 10,855,474 17,288,052
Change in unrealized foreign exchange gain/loss on
other assets and liabilities................................ 341 -- 21 --
Change in unrealized appreciation/depreciation on futures
contracts................................................... -- 300,750 -- --
---------------------------------------------------------
Net increase in net assets resulting from operations......... 89,254,031 70,213,007 28,394,045 25,877,428
---------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income........................ (1,150,000) (483,000) (1,265,000) --
Distribution from net realized gain on investments.......... (1,631,000) (13,185,000) (10,645,000) --
---------------------------------------------------------
Total dividends and distributions to shareholders............ (2,781,000) (13,668,000) (11,910,000) --
---------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.................................... 358,199,882 247,316,545 46,376,696 55,935,417
Proceeds from shares issued for reinvestment of dividends
and distributions........................................... 2,781,000 13,668,000 11,910,000 --
Cost of shares repurchased................................... (85,948,539) (104,032,606) (38,313,646) (37,015,839)
---------------------------------------------------------
Net increase (decrease) in net assets resulting from capital
share transactions.......................................... 275,032,343 156,951,939 19,973,050 18,919,578
---------------------------------------------------------
TOTAL INCREASE IN NET ASSETS................................. 361,505,374 213,496,946 36,457,095 44,797,006
NET ASSETS:
Beginning of period.......................................... 154,907,997 167,869,727 149,910,483 115,276,039
---------------------------------------------------------
End of period................................................ $516,413,371 $381,366,673 $186,367,578 $160,073,045
=========================================================
Accumulated undistributed net investment income.............. $ 3,382,016 $ 1,193,834 $ 1,322,795 $ --
=========================================================
Shares issued and repurchased:
Sold......................................................... 24,918,067 15,394,232 3,516,917 4,113,284
Issued in reinvestment of dividends and distributions........ 208,003 893,333 949,004 --
Repurchased.................................................. (6,065,330) (6,661,296) (2,922,221) (2,724,390)
---------------------------------------------------------
Net increase (decrease)...................................... 19,060,740 9,626,269 1,543,700 1,388,894
=========================================================

<CAPTION>
INTERNATIONAL
GLOBAL DIVERSIFIED AGGRESSIVE
EQUITIES EQUITIES GROWTH#
-----------------------------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss)................................. $ 2,128,761 $ 481,375 $ 39,730
Net realized gain (loss) on investments...................... 12,300,321 1,688,079 (705,902)
Net realized gain (loss) on futures and options contracts.... -- -- --
Net realized foreign exchange gain (loss) on other
assets and liabilities...................................... 496,594 5,292,994 --
Change in unrealized appreciation/depreciation on
investments................................................. 19,341,166 5,555,457 3,091,213
Change in unrealized foreign exchange gain/loss on
other assets and liabilities................................ (27,011) (813,250) --
Change in unrealized appreciation/depreciation on futures
contracts................................................... -- -- --
-----------------------------------------
Net increase in net assets resulting from operations......... 34,239,831 12,204,655 2,425,041
-----------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income........................ (1,885,000) (1,350,000) --
Distribution from net realized gain on investments.......... (4,480,000) -- --
-----------------------------------------
Total dividends and distributions to shareholders............ (6,365,000) (1,350,000) --
-----------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.................................... 99,072,900 133,585,152 39,091,029
Proceeds from shares issued for reinvestment of dividends
and distributions........................................... 6,365,000 1,350,000 --
Cost of shares repurchased................................... (52,582,422) (37,742,073) (6,391,768)
-----------------------------------------
Net increase (decrease) in net assets resulting from capital
share transactions.......................................... 52,855,478 97,193,079 32,699,261
-----------------------------------------
TOTAL INCREASE IN NET ASSETS................................. 80,730,309 108,047,734 35,124,302

NET ASSETS:
Beginning of period.......................................... 165,751,697 48,960,659 --
-----------------------------------------
End of period................................................ $246,482,006 $157,008,393 $35,124,302
=========================================
Accumulated undistributed net investment income.............. $ 2,209,001 $ 4,077,453 $ 39,730
=========================================
Shares issued and repurchased:
Sold......................................................... 7,165,202 12,354,619 4,051,127
Issued in reinvestment of dividends and distributions........ 472,181 130,941 --
Repurchased.................................................. (3,815,033) (3,499,995) (661,704)
-----------------------------------------
Net increase (decrease)...................................... 3,822,350 8,985,565 3,389,423
=========================================

</TABLE>

99
<PAGE> 95

- ---------------------

SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED NOVEMBER 30, 1995
<TABLE>
<CAPTION>
WORLDWIDE
CASH GLOBAL CORPORATE HIGH-YIELD HIGH
MANAGEMENT BOND BOND BOND INCOME
---------------------------------------------------------------------------------------------------------------------

<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)................... $ 4,241,505 $ 2,876,243 $ 1,224,668 $ 7,526,895 $1,504,113
Net realized gain (loss) on investments........ 5,110 1,618,834 581,976 (3,711,235) 76,600
Net realized gain (loss) on futures and options
contracts.................................... -- -- 13,918 -- --
Net realized foreign exchange gain (loss) on
other assets and liabilities................. -- 1,319,839 -- -- --
Change in unrealized appreciation/depreciation
on investments............................... 44,053 1,593,149 1,262,150 4,427,627 484,883
Change in unrealized foreign exchange gain/loss
on other assets and liabilities.............. -- 1,814 -- -- --
Change in unrealized appreciation/depreciation
on futures contracts......................... -- -- 39,889 -- --
--------------------------------------------------------------------
Net increase in net assets resulting from
operations................................... 4,290,668 7,409,879 3,122,601 8,243,287 2,065,596
--------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income......... (2,210,000) (1,700,000) (885,000) (6,340,000) (114,929)
Distributions from net realized gain on
investments................................ -- -- -- -- --
--------------------------------------------------------------------
Total dividends and distributions to
shareholders................................. (2,210,000) (1,700,000) (885,000) (6,340,000) (114,929)
--------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold...................... 415,378,253 22,230,068 22,925,314 70,702,486 13,740,334
Proceeds from shares issued for reinvestment of
dividends and distributions.................. 2,210,000 1,700,000 885,000 6,340,000 114,929
Cost of shares repurchased..................... (418,035,564) (14,423,490) (12,442,153) (52,574,843) (4,768,369)
--------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from capital share transactions.............. (447,311) 9,506,578 11,368,161 24,467,643 9,086,894
--------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS................... 1,633,357 15,216,457 13,605,762 26,370,930 11,037,561
NET ASSETS:
Beginning of year.............................. 89,097,836 44,542,587 15,868,758 55,802,737 10,477,519
--------------------------------------------------------------------
End of year.................................... $ 90,731,193 $59,759,044 $29,474,520 $82,173,667 $21,515,080
========================================================================
---------------
Accumulated undistributed net investment income
(loss)....................................... $ 4,234,947 $ 3,620,109 $ 1,219,884 $ 7,410,940 $1,431,913
========================================================================
Shares issued and repurchased:
Sold........................................... 39,465,595 2,131,775 2,218,395 6,846,915 1,299,782
Issued in reinvestment of dividends and
distributions................................ 214,355 170,000 90,306 648,925 11,873
Repurchased.................................... (39,709,537) (1,407,509) (1,212,881) (5,097,408) (480,433)
--------------------------------------------------------------------
Net increase (decrease)........................ (29,587) 894,266 1,095,820 2,398,432 831,222
========================================================================
</TABLE>

See Notes to Financial Statements

- ---------------------

100
<PAGE> 96
<TABLE>
<CAPTION>
BALANCED/
PHOENIX
INVESTMENT ASSET GROWTH- VENTURE
COUNSEL ALLOCATION INCOME VALUE
--------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income (loss)..................................... $ 406,341 $ 5,320,722 $ 1,675,560 $ 904,551
Net realized gain (loss) on investments.......................... 875,469 6,792,943 6,546,892 1,620,396
Net realized gain (loss) on futures and options contracts........ -- 37,040 -- --
Net realized foreign exchange gain (loss) on other assets and
liabilities..................................................... -- -- 76 --
Change in unrealized appreciation/depreciation on investments.... 1,971,928 20,689,780 26,098,737 15,272,123
Change in unrealized foreign exchange gain/loss on other assets
and liabilities................................................. -- -- -- --
Change in unrealized appreciation/depreciation on future
contracts....................................................... -- 94,950 -- --
--------------------------------------------------------------
Net increase in net assets resulting from operations............. 3,253,738 32,935,435 34,321,265 17,797,070
--------------------------------------------------------------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income............................ (11,237) (2,240,000) (875,000) (23,311)
Distributions from net realized gain on investments............. -- (425,000) -- --
--------------------------------------------------------------
Total dividends and distributions to shareholders................ (11,237) (2,665,000) (875,000) (23,311)
--------------------------------------------------------------

CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold........................................ 30,928,111 91,078,058 79,200,929 164,118,300
Proceeds from shares issued for reinvestment of dividends and
distributions................................................... 11,237 2,665,000 875,000 23,311
Cost of shares repurchased....................................... (3,269,069) (31,032,947) (27,140,302) (31,455,895)
--------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS..................................... 27,670,279 62,710,111 52,935,627 132,685,716
--------------------------------------------------------------
30,912,780 92,980,546 86,381,892 150,459,475

NET ASSETS:
Beginning of year................................................ 1,515,755 106,855,844 84,899,181 4,448,522
--------------------------------------------------------------
End of year...................................................... $32,428,535 $199,836,390 $171,281,073 $154,907,997
==============================================================

Accumulated undistributed net investment income (loss)........... $ 399,630 $ 5,029,483 $ 1,673,393 $ 889,057
==============================================================
Shares issued and repurchased:
Sold............................................................. 2,742,183 7,788,903 6,452,877 13,646,177
Issued in reinvestment of dividends and distributions............ 1,132 243,157 77,502 2,359
Repurchased...................................................... (296,843) (2,699,219) (2,260,341) (2,599,805)
--------------------------------------------------------------
Net increase (decrease).......................................... 2,446,472 5,332,841 4,270,038 11,048,731
==============================================================

<CAPTION>
GROWTH/
PHOENIX
ALLIANCE INVESTMENT PROVIDENT GLOBAL
GROWTH COUNSEL GROWTH EQUITIES
---------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income (loss)..................................... $ 481,532 $ 1,263,637 $ (45,258) $ 1,450,200
Net realized gain (loss) on investments.......................... 13,305,824 19,383,952 240,218 5,003,696
Net realized gain (loss) on futures and options contracts........ 47,744 -- -- (524,955)
Net realized foreign exchange gain (loss) on other assets and
liabilities..................................................... -- 701 -- 720,956
Change in unrealized appreciation/depreciation on investments.... 21,063,685 14,865,880 25,016,207 13,392,395
Change in unrealized foreign exchange gain/loss on other assets
and liabilities................................................. -- (21) -- 15,377
Change in unrealized appreciation/depreciation on future
contracts....................................................... 96,750 -- -- 182,708
---------------------------------------------------------------
Net increase in net assets resulting from operations............. 34,995,535 35,514,149 25,211,167 20,240,377
---------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income............................ (155,000) (1,450,000) (200,000) (855,000)
Distributions from net realized gain on investments............. (725,000) -- -- (3,190,000)
---------------------------------------------------------------
Total dividends and distributions to shareholders................ (880,000) (1,450,000) (200,000) (4,045,000)
---------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold........................................ 168,074,086 45,890,799 46,200,686 79,044,610
Proceeds from shares issued for reinvestment of dividends and
distributions................................................... 880,000 1,450,000 200,000 4,045,000
Cost of shares repurchased....................................... (88,413,178) (35,688,009) (31,477,920) (70,291,038)
---------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS..................................... 80,540,908 11,652,790 14,922,766 12,798,572
---------------------------------------------------------------
114,656,443 45,716,939 39,933,933 28,993,949
NET ASSETS:
Beginning of year................................................ 53,213,284 104,193,544 75,342,106 136,757,748
---------------------------------------------------------------
End of year...................................................... $167,869,727 $149,910,483 $115,276,039 $165,751,697
===============================================================
Accumulated undistributed net investment income (loss)........... $ 477,396 $ 1,261,039 $ -- $ 1,468,646
===============================================================
Shares issued and repurchased:
Sold............................................................. 12,084,699 4,046,435 3,971,874 6,436,345
Issued in reinvestment of dividends and distributions............ 76,126 135,387 18,536 357,648
Repurchased...................................................... (6,421,749) (3,175,785) (2,684,472) (5,815,859)
---------------------------------------------------------------
Net increase (decrease).......................................... 5,739,076 1,006,037 1,305,938 978,134
===============================================================
<CAPTION>
INTERNATIONAL
DIVERSIFIED
EQUITIES
------------
<S> <C>
OPERATIONS
Net investment income (loss)..................................... $ 214,789
Net realized gain (loss) on investments.......................... (585,776)
Net realized gain (loss) on futures and options contracts........ --
Net realized foreign exchange gain (loss) on other assets and
liabilities..................................................... (506,494)
Change in unrealized appreciation/depreciation on investments.... 1,120,932
Change in unrealized foreign exchange gain/loss on other assets
and liabilities................................................. 1,810,094
Change in unrealized appreciation/depreciation on future
contracts....................................................... --
------------
Net increase in net assets resulting from operations............. 2,053,545
------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income............................ (121,869)
Distributions from net realized gain on investments............. --
------------
Total dividends and distributions to shareholders................ (121,869)
------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold........................................ 58,139,793
Proceeds from shares issued for reinvestment of dividends and
distributions................................................... 121,869
Cost of shares repurchased....................................... (23,670,269)
------------
TOTAL INCREASE IN NET ASSETS..................................... 34,591,393
------------
36,523,069
NET ASSETS:
Beginning of year................................................ 12,437,590
------------
End of year...................................................... $ 48,960,659
============
Accumulated undistributed net investment income (loss)........... $ (346,916)
============
Shares issued and repurchased:
Sold............................................................. 6,011,154
Issued in reinvestment of dividends and distributions............ 12,721
Repurchased...................................................... (2,470,598)
------------
Net increase (decrease).......................................... 3,553,277
============
</TABLE>

101
<PAGE> 97

- ---------------------

SUNAMERICA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS

1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION: SunAmerica Series Trust
("the Trust"), organized as a Massachusetts business trust on September 11,
1992, is an open-end management investment company. It was established to
provide a funding medium for certain annuity contracts issued by Variable
Separate Account (the "Account"), a separate account of Anchor National Life
Insurance Company ("Life Company"), organized under the laws of the state of
Arizona.

The Trust issues 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. The
current Portfolios are the Cash Management Portfolio, Global Bond Portfolio,
Corporate Bond Portfolio (formerly, the Fixed Income Portfolio), High-Yield Bond
Portfolio, Worldwide High Income Portfolio, SunAmerica Balanced Portfolio,
Balanced/Phoenix Investment Counsel Portfolio, Asset Allocation Portfolio,
Utility Portfolio, Growth-Income Portfolio, Federated Value Portfolio, Venture
Value Portfolio, Alliance Growth Portfolio, Growth/Phoenix Investment Counsel
Portfolio, Provident Growth Portfolio, Global Equities Portfolio, International
Diversified Equities Portfolio and Aggressive Growth Portfolio. All shares may
be purchased or redeemed by the Account at net asset value without any sales or
redemption charge.

The investment objectives for each portfolio are as follows:

The Cash Management Portfolio seeks high current yield while preserving capital
by investing in a diversified selection of money market instruments.

The Global Bond Portfolio seeks a high total return, emphasizing current income
and, to a lesser extent, providing opportunities for capital appreciation,
through investment in high quality fixed-income securities of U.S. and foreign
issuers and through transactions in foreign currencies.

The Corporate Bond Portfolio seeks a high total return with only moderate price
risk by investing primarily in investment grade fixed-income securities.

The High-Yield Bond Portfolio seeks a high level of current income and
secondarily seeks capital appreciation by investing primarily in intermediate
and long-term corporate obligations, with emphasis on higher-yielding,
higher-risk, lower-rated or unrated securities.

The Worldwide High Income Portfolio seeks high current income and, secondarily,
capital appreciation, by investing primarily in a portfolio of high-yielding
fixed-income securities of issuers located throughout the world.

The SunAmerica Balanced Portfolio seeks to conserve principal by maintaining at
all times a balanced portfolio of stocks and bonds.

The Balanced/Phoenix Investment Counsel Portfolio seeks reasonable income,
long-term capital growth and conservation of capital by investing primarily in
common stocks and fixed-income securities, with an emphasis on income-producing
securities which appear to have some potential for capital enhancement.

The Asset Allocation Portfolio seeks high total return (including income and
capital gains) consistent with preservation of capital over the long-term
through a diversified portfolio that can include common stocks and other
securities having common stock characteristics, bonds and other intermediate and
long-term fixed-income securities and money market instruments (debt securities
maturing in one year or less) in any combination.

The Utility Portfolio seeks high current income and moderate capital
appreciation by investing primarily in the equity and debt securities of utility
companies.

The Growth-Income Portfolio seeks growth of capital and income by investing
primarily in common stocks or securities which demonstrate the potential for
appreciation and/or dividends.

The Federated Value Portfolio seeks growth of capital and income by investing
primarily in the securities of high quality companies.

The Venture Value Portfolio seeks to achieve growth of capital by investing
primarily in common stocks.

The Alliance Growth, Growth/Phoenix Investment Counsel and Provident Growth
Portfolios each seeks long-term growth of capital by investing primarily in
common stocks or securities with common stock characteristics which demonstrate
the potential for appreciation.

The Global Equities Portfolio seeks long-term growth of capital through
investment primarily in common stocks or securities of U.S. and foreign issuers
with common stock characteristics which demonstrate the potential for
appreciation and through transactions in foreign currencies.

- ---------------------

102
<PAGE> 98

The International Diversified Equities Portfolio seeks long-term capital
appreciation by investing in accordance with country weightings determined by
the Subadviser in common stocks of foreign issuers which, in the aggregate,
replicate broad country indices.

The Aggressive Growth Portfolio seeks long-term growth of capital through
investment primarily in equity securities of small capitalization growth
companies.

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 November 30, 1996, 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, and other long-term debt securities
are valued at prices obtained for the day of valuation from a bond pricing
service of a major dealer in bonds when such prices are available; however, in
circumstances where the investment adviser deems it appropriate to do so, an
over-the-counter or exchange quotation at the mean of representative bid or
asked prices may be used. Securities traded primarily on securities exchanges
outside the United States are valued at the last sale price on such exchanges on
the day of valuation, or if there is no sale on the day of valuation, at the
last reported bid price. If a security's price is available from more than one
foreign exchange, a portfolio uses the exchange that is the primary market for
the security. 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 original or remaining maturities in excess of 60 days are valued
at the mean of their quoted bid and ask prices. Short-term securities with 60
days or less to maturity are amortized to maturity based on their cost to the
Trust if acquired within 60 days of maturity or, if already held by the Trust on
the 60th day, are amortized to maturity based on the value determined on the
61st day. Securities for which quotations are not readily available are valued
at fair value as determined in good faith under the direction of the Trust's
Trustees.

REPURCHASE AGREEMENTS: The Trust's custodian takes possession of the
collateral pledged for investments in repurchase agreements. The underlying
collateral is valued daily on a mark-to-market basis to assure that the value,
including accrued interest, is at least equal to the repurchase price. In the
event of default of the obligation to repurchase, the Trust has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. If the seller defaults and the value of the collateral declines or
if bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by the Trust may be delayed or limited.

REVERSE REPURCHASE AGREEMENTS: Certain Portfolios may enter into reverse
repurchase agreements with institutions that the Portfolio's investment adviser
or subadviser has determined are creditworthy. Under a reverse repurchase
agreement, the Portfolio sells securities and agrees to repurchase them at a
mutually agreed upon date and price. Reverse repurchase agreements involve the
risk that the market value of the securities purchased with the proceeds from
the agreement may decline below the price of the securities the Portfolio is
obligated to repurchase. During the year ended November 30, 1996, the Worldwide
High Income Portfolio entered into one reverse repurchase agreement. There were
no reverse repurchase agreements outstanding at November 30, 1996.

FOREIGN CURRENCY TRANSLATION: The books and records of the Trust are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars at published rates on the following basis:

(i) market value of investment securities, other assets and liabilities at
the prevailing rate of exchange at the valuation date.

(ii) purchases and sales of investment securities, income and expenses at the
rate of exchange prevailing on the respective dates of such transactions.

Assets and liabilities denominated in foreign currencies and commitments under
forward foreign currency contracts are translated into U.S. dollars at the mean
of the quoted bid and asked prices of such currencies against the U.S. dollar.
Purchases and sales of portfolio securities are translated at the rate of
exchange prevailing when such securities were acquired or sold. Income and
expenses are translated at rates of exchange prevailing when earned or incurred.

The Trust does not isolate that portion of the results of operations arising
as a result of changes in the foreign exchange rates from the changes in the
market prices of securities held at fiscal year-end. The Trust does not isolate
the effect of changes in foreign exchange rates from the changes in the market
prices of portfolio securities sold during the year.

Realized foreign exchange gain (loss) on other assets and liabilities and
change in unrealized foreign exchange gain (loss) on other assets and
liabilities include realized foreign exchange gains and losses from currency
gains or losses realized between the trade and settlement dates of securities
transactions, forward foreign currency contracts, dividends received, the
difference between the amounts of interest, discount and foreign withholding
taxes recorded on the Trust's books and the U.S. dollar equivalent amounts
actually received or paid and changes in the unrealized foreign exchange gains
and losses relating to the other assets and liabilities arising as a result of
changes in the exchange rate.

---------------------

103
<PAGE> 99

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.

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.

SECURITIES TRANSACTIONS, INVESTMENT INCOME, EXPENSES, DIVIDENDS AND
DISTRIBUTIONS: As is customary in the mutual fund industry, securities
transactions are accounted for on the first business day following the trade
date. Interest income is accrued daily except when collection is not expected.
Dividend income and distributions to shareholders are recorded on the ex-
dividend date except for certain dividends from foreign securities, which are
recorded as soon as the Trust is informed after the ex-dividend date. The Trust
amortizes premiums and accretes discounts on fixed income securities, as well as
those original issue discounts for which amortization is required for federal
income tax purposes; gains and losses realized upon the sale of such securities
are based on their identified cost. Portfolios which earn foreign income and
capital gains may be subject to foreign withholding taxes at various rates.

Common expenses incurred by the Trust are allocated among the Portfolios based
upon relative net assets. In all other respects, expenses are charged to each
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.

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 $ --
Global Bond*............................................ 1,396,295 (1,425,231) (28,936)
Corporate Bond.......................................... 620 (620) --
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 --
Provident 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.

- ---------------------

104
<PAGE> 100

3. JOINT REPURCHASE AGREEMENT ACCOUNT: The Cash Management, High-Yield Bond,
SunAmerica Balanced and Aggressive Growth Portfolios, along with other
affiliated registered investment companies, transfer uninvested cash balances
into a single joint account, the daily aggregate balance of which is invested in
one or more repurchase agreements collateralized by U.S. Treasury or federal
agency obligations. As of November 30, 1996, the Cash Management, High-Yield
Bond, SunAmerica Balanced and Aggressive Growth Portfolios had a 6.5%, 4.2%,
1.9% and 3.3%, undivided interest, respectively, which represented $5,615,000,
$3,610,000, $1,605,000 and $2,812,000, respectively, in principal amount in a
repurchase agreement in the joint account. As of such date, the repurchase
agreement in the joint account and the collateral therefore was as follows:

Yamaichi International (America), Inc. Repurchase Agreement, 5.60% dated
11/29/96, in the principal amount of $86,443,000 repurchase price $86,483,340
due 12/02/96 collateralized by $50,000,000 U.S. Treasury Bills due 1/9/97;
$25,910,000 U.S. Treasury Notes 7.50% due 12/31/96 and $11,443,000 U.S. Treasury
Bonds 9.875% due 11/15/15, approximate aggregate value $88,224,302.

4. FEDERAL INCOME TAXES: The Trust intends to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and
distribute all of its taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal tax provision is
required.

The amounts of aggregate unrealized gain (loss) and the cost of investment
securities, including short-term securities, were as follows:
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE UNREALIZED CAPITAL CAPITAL
UNREALIZED UNREALIZED GAIN/(LOSS) COST OF LOSS LOSS
GAIN (LOSS) NET INVESTMENTS CARRYOVER* UTILIZED
-----------------------------------------------------------------------------

<S> <C> <C> <C> <C> <C> <C>
Cash Management**......................... $ 2,919 $ (9,336) $ (6,417) $ 91,021,216 $ 68 $ --
Global Bond............................... 2,130,390 (265,691) 1,864,699 66,254,357 -- 918,531
Corporate Bond............................ 1,230,340 (81,162) 1,149,178 35,688,772 769,710 503,104
High-Yield Bond........................... 5,398,889 (525,843) 4,873,046 109,050,893 8,449,586 560,483
Worldwide High Income..................... 3,169,230 (274,600) 2,894,630 45,989,335 -- --
SunAmerica Balanced....................... 926,973 (111,924) 815,049 9,172,139 -- --
Balanced/Phoenix Investment Counsel....... 5,965,976 (248,548) 5,717,428 69,841,797 -- --
Asset Allocation.......................... 38,016,522 (2,201,911) 35,814,611 301,334,272 -- --
Utility................................... 320,270 (38,666) 281,604 6,142,523 -- --
Growth-Income............................. 67,923,299 (851,198) 67,072,101 257,659,579 -- --
Federated Value........................... 1,261,462 (70,954) 1,190,508 11,125,038 16,874 --
Venture Value............................. 92,728,234 (1,660,947) 91,067,287 425,413,244 -- --
Alliance Growth........................... 66,664,231 (1,151,940) 65,512,291 314,862,223 -- --
Growth/Phoenix Investment Counsel......... 28,862,690 (1,676,399) 27,186,291 159,124,632 -- --
Provident Growth.......................... 46,070,305 (743,008) 45,327,297 116,209,367 -- 3,161,237
Global Equities........................... 35,965,974 (6,218,894) 29,747,080 220,239,627 -- --
International Diversified Equities........ 12,591,474 (6,798,840) 5,792,634 152,434,226 -- 211,683
Aggressive Growth**....................... 3,628,317 (541,226) 3,087,091 31,814,989 248,317 --
</TABLE>

* Expire 2002-2004

** Post 10/31/96 Capital Loss Deferrals: Cash Management $1,541; Aggressive
Growth $453,463

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.

---------------------

105
<PAGE> 101

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%
Global Bond- $0--$ 50 million 0.75%
Asset Allocation > $ 50 million 0.65%
> $150 million 0.60%
> $250 million 0.55%
Corporate Bond $0--$ 50 million 0.70%
> $ 50 million 0.60%
> $150 million 0.55%
> $250 million 0.50%
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 0.70%
> $150 million 0.60%
> $500 million 0.50%
Venture Value $0--$100 million 0.80%
> $100 million 0.75%
> $500 million 0.70%
Provident Growth $0--$ 50 million 0.85%
> $ 50 million 0.80%
> $150 million 0.70%
> $250 million 0.65%
> $350 million 0.60%
Global Equities $0--$ 50 million 0.90%
> $ 50 million 0.80%
> $150 million 0.70%
> $300 million 0.65%
Aggressive Growth $0--$100 million 0.75%
> $100 million 0.675%
> $250 million 0.625%
> $500 million 0.60%
</TABLE>

The organizations described below act as subadvisers to the Trust and certain
of its Portfolios pursuant to Subadvisory Agreements with SAAMCo. Under the
Subadvisory Agreements, the subadvisers manage the investment and reinvestment
of the assets of the respective Portfolios for which they are responsible. Each
of the subadvisers is independent of SAAMCo and discharges its responsibilities
subject to the policies of the Trustees and the oversight and supervision of
SAAMCo, which pays the subadvisers' fees.

Goldman Sachs Asset Management International, an affiliate of Goldman Sachs &
Co., serves as subadviser for the Global Bond Portfolio; Goldman Sachs Asset
Management, a separate operating division of Goldman Sachs & Co., serves as
subadviser for the Asset Allocation Portfolio; Federated Investment Counseling
serves as a subadviser for the Corporate Bond, Federated Value and Utility
Portfolios; Morgan Stanley Asset Management Inc., a wholly owned subsidiary of
Morgan Stanley Group, Inc., serves as subadviser for the International
Diversified Equities and Worldwide High Income Portfolios; Phoenix Investment
Counsel, Inc. serves as subadviser for the Growth/Phoenix Investment Counsel and
Balanced/Phoenix Investment Counsel Portfolios; Alliance Capital Management L.P.
serves as a subadviser for the Global Equities, Alliance Growth and
Growth-Income Portfolios; Davis Selected Advisers, L.P. serves as subadviser for
the Venture Value Portfolio; and Provident Investment Counsel, Inc. serves as
subadviser for the Provident Growth Portfolio. Effective June 3, 1996 Goldman
Sachs Asset Management resigned their role as subadviser and Federated
Investment Counseling assumed the role as subadviser for the Corporate Bond
Portfolio.

- ---------------------

106
<PAGE> 102

The portion of the investment advisory fees received by SAAMCo which are paid
to subadvisers are as follows:
<TABLE>
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ---------------------------------------------------------

<S> <C> <C>
Global Bond- $0--$ 50 million 0.40%
Asset Allocation > $ 50 million 0.30%
> $150 million 0.25%
> $250 million 0.20%
Corporate Bond $0--$ 25 million 0.30%
> $ 25 million 0.25%
> $100 million 0.20%
> $150 million 0.15%
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%
Provident Growth $0--$ 50 million 0.50%
> $ 50 million 0.45%
> $150 million 0.35%
> $250 million 0.30%
> $350 million 0.25%
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 waive fees or
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 waive or reimburse additional amounts to increase
the investment return to a Portfolio's investors. The Adviser may terminate all
such waivers and/or reimbursements at any time. Further, effective June 3, 1996,
any waivers or reimbursements made by the Adviser with respect to a Portfolio
are subject to recoupment from that Portfolio within the following two years,
provided that the Portfolio is able to effect such payment to the Adviser and
remain in compliance with the foregoing expense limitations.

The impact of such expense reimbursements is reflected in the Statement of
Operations under the caption "expenses reimbursed by the investment adviser."

6. ORGANIZATIONAL EXPENSES: Costs incurred by the Adviser in connection with
the organization and registration of the Trust amounted to $204,704.
Organizational expenses 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 year ended November 30, 1996, was as
follows:
<TABLE>
<CAPTION>
CASH GLOBAL CORPORATE HIGH-YIELD WORLDWIDE SUNAMERICA
MANAGEMENT BOND BOND BOND HIGH INCOME BALANCED
---------------------------------------------------------------------------------------------

<S> <C> <C> <C> <C> <C> <C>
Purchases of portfolio
securities............... $ -- $119,936,743 $116,246,365 $127,757,620 $77,341,010 $9,249,594
Sales of portfolio
securities............... -- 118,839,853 107,922,252 96,920,503 58,496,629 1,691,653
U.S. government securities
included above were as
follows:
Purchases of U.S.
government securities.... -- 31,143,070 83,683,505 -- -- 1,014,326
Sales of U.S. government
securities............... -- 22,828,289 90,634,049 -- -- --
</TABLE>

---------------------

107
<PAGE> 103
<TABLE>
<CAPTION>
BALANCED/PHOENIX
INVESTMENT ASSET GROWTH- FEDERATED VENTURE
COUNSEL ALLOCATION UTILITY INCOME VALUE VALUE
---------------------------------------------------------------------------------------------

<S> <C> <C> <C> <C> <C> <C>
Purchases of portfolio
securities............... $115,506,321 $560,709,314 $6,568,389 $259,614,657 $11,939,399 $307,784,901
Sales of portfolio
securities............... 84,745,767 473,924,819 799,824 180,419,109 1,748,311 61,080,932
U.S. government securities
included above were as
follows:
Purchases of U.S.
government securities.... 42,005,493 362,083,040 -- -- -- --
Sales of U.S. government
securities............... 31,216,216 352,430,512 -- -- -- --
</TABLE>
<TABLE>
<CAPTION>
GROWTH/PHOENIX INTERNATIONAL
ALLIANCE INVESTMENT PROVIDENT GLOBAL DIVERSIFIED AGGRESSIVE
GROWTH COUNSEL GROWTH EQUITIES EQUITIES GROWTH
---------------------------------------------------------------------------------------------

<S> <C> <C> <C> <C> <C> <C>
Purchases of portfolio
securities............... $438,376,297 $234,109,325 $96,172,952 $184,810,018 $146,866,299 $36,231,547
Sales of portfolio
securities............... 286,378,463 883,193,972 78,049,379 136,312,942 50,986,307 6,526,778
U.S. government securities
included above were as
follows:
Purchases of U.S.
government securities.... -- -- -- -- -- --
Sales of U.S. government
securities............... -- -- -- -- -- --
</TABLE>

8. TRANSACTIONS WITH AFFILIATES: The following Portfolios incurred brokerage
commissions with an affiliated broker:

<TABLE>
<CAPTION>
GOLDMAN
SACHS & CO.
-----------
<S> <C>
Asset Allocation Portfolio................................................. $23,078
</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 year ended November 30, 1996, the High-Yield Bond Portfolio
had borrowings outstanding for 13 days under the line of credit and incurred
$7,414 in interest charges related to these borrowings. The High-Yield Bond
Portfolio's average amount of debt under the line of credit for the year ended
November 30, 1996 was $102,242 at a weighted average interest of 6.96%. The
High-Yield Bond Portfolio did not have any outstanding borrowing at November 30,
1996.

- ---------------------

108
<PAGE> 104

- ---------------------

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
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
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
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
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
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+++

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
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
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
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
Worldwide High Income Portfolio
10/28/94-
11/30/94 2 NA
11/30/95 176 NA
11/30/96# 177 NA
SunAmerica Balanced Portfolio
6/3/96-
11/30/96 40 .0600
</TABLE>

* Calculated based upon average shares outstanding

** After fee waivers and expense reimbursements by the investment adviser

*** Does not reflect expenses that apply to the separate accounts of Anchor
National Life Insurance Company and First SunAmerica Life Insurance
Company. If such expenses had been included, total return would have
been lower for each period presented.

@ The average commission per share is derived by taking the agency
commissions paid on equity securities trades and dividing by the number of
shares purchased or sold.

+ Annualized

++ During the periods ended November 30, 1993, 1994, 1995 and 1996, the
investment adviser waived a portion of or all fees and assumed a portion
of or all expenses for the portfolios. If all fees and expenses had been
incurred by the portfolios, the ratio of expenses to average net assets
and the ratio of net investment income to average net assets would have
been as follows:

<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME
------------------------------- ----------------------------------
1993 1994 1995 1996 1993 1994 1995 1996
------------------------------- ----------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Cash Management Portfolio.............................. 1.10% 0.78% 0.67% 0.62% 2.14% 3.65% 5.32% 4.90%
Global Bond Portfolio.................................. 1.81 1.06 0.95 0.89 3.10 5.29 5.89 5.44
Corporate Bond Portfolio............................... 1.81 1.09 0.97 0.97 3.05 5.06 5.92 6.11
High-Yield Bond Portfolio.............................. 1.29 0.93 0.80 0.77 9.08 11.06 10.80 9.41
Worldwide High Income Portfolio........................ -- 2.26 1.30 1.18 -- 3.82 10.46 10.45
SunAmerica Balanced Portfolio.......................... -- -- -- 1.43 -- -- -- 1.49
</TABLE>

<TABLE>
<CAPTION>
DEBT AVERAGE AVERAGE AVERAGE
YEAR OUTSTANDING DEBT SHARES DEBT
ENDED AT YEAR END OUTSTANDING OUTSTANDING PER SHARE
--------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Worldwide High Income Portfolio........................ 11/30/96 -- $ 120,656 3,085,308 $0.0391
</TABLE>

See Notes to Financial Statements

---------------------

109
<PAGE> 105

- ---------------------

SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS* -- (CONTINUED)

<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
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
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+++
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
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+++
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

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
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
Utility Portfolio
6/3/96-
11/30/96 24 .0439
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
Federated Value Portfolio
6/3/96-
11/30/96 30 .0520
Venture Value Portfolio
10/28/94-
11/30/94 -- NA
11/30/95 18 NA
11/30/96 22 .0598
</TABLE>

* Calculated based upon average shares outstanding

** After fee waivers and expense reimbursements by the investment adviser

@ The average commission per share is derived by taking the agency
commissions paid on equity securities trades and dividing by the number of
shares purchased or sold.

+ Annualized

<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME (LOSS)
------------------------------- -----------------------------------
1993 1994 1995 1996 1993 1994 1995 1996
------------------------------- -----------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balanced/Phoenix Investment Counsel Portfolio......... --% 6.82% 1.11% 0.84% --% (1.57)% 2.95% 2.74%
Asset Allocation Portfolio............................ 1.67 0.94 0.81 0.74 1.65 2.71 3.62 3.66
Utility Portfolio..................................... -- -- -- 1.93 -- -- -- 3.53
Growth-Income Portfolio............................... 1.40 0.89 0.77 0.72 1.01 1.18 1.42 1.21
Federated Value Portfolio............................. -- -- -- 1.57 -- -- -- 0.74
Venture Value Portfolio............................... -- 3.89 1.02 0.85 -- 1.14 1.41 1.21
</TABLE>

See Notes to Financial Statements

- ---------------------

110
<PAGE> 106

- ---------------------

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
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
Provident 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)
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
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
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+++

AVERAGE
COMMISSION
PERIOD PORTFOLIO PER
ENDED TURNOVER SHARE@
- ----------------------------------
<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
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
Provident 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
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
International Diversified Equities Portfolio
10/28/94-
11/30/94 -- NA
11/30/95 52 NA
11/30/96 53 .0023
Aggressive Growth Portfolio
6/3/96-
11/30/96 47 .0600
</TABLE>

* Calculated based upon average shares outstanding

** After fee waivers and expense reimbursements by the investment adviser

@ The average commission per share is derived by taking the agency
commissions paid on equity securities trades and dividing by the number of
shares purchased or sold.

+ Annualized

<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME (LOSS)
------------------------------- -----------------------------------
1993 1994 1995 1996 1993 1994 1995 1996
------------------------------- -----------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Alliance Growth Portfolio............................. 1.56% 0.96% 0.79% 0.71% (0.13)% 0.23% 0.51% 0.51%
Growth/Phoenix Investment Counsel Portfolio........... 1.28 0.87 0.76 0.74 1.74 1.46 1.01 0.82
Provident Growth Portfolio............................ 1.46 1.05 0.93 0.90 (0.17) 0.22 (0.05) (0.02)
Global Equities Portfolio............................. 2.52 1.28 1.14 1.03 (0.64) 0.42 1.02 1.04
International Diversified Equities Portfolio.......... -- 3.50 2.09 1.59 -- (0.20) 0.37 0.47
Aggressive Growth Portfolio........................... -- -- -- 1.09 -- -- -- 0.42
</TABLE>

See Notes to Financial Statements

---------------------

111
<PAGE> 107

- ---------------------

SUNAMERICA SERIES TRUST
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees and Shareholders of SunAmerica Series Trust

In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolios, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Cash Management Portfolio, Global
Bond Portfolio, Corporate Bond Portfolio (formerly Fixed Income Portfolio),
High-Yield Bond Portfolio, Worldwide High Income Portfolio, SunAmerica Balanced
Portfolio, Balanced/Phoenix Investment Counsel Portfolio, Asset Allocation
Portfolio, Utility Portfolio, Growth-Income Portfolio, Federated Value
Portfolio, Venture Value Portfolio, Alliance Growth Portfolio, Growth/Phoenix
Investment Counsel Portfolio, Provident Growth Portfolio, Global Equities
Portfolio, International Diversified Equities Portfolio and Aggressive Growth
Portfolio (constituting SunAmerica Series Trust, hereafter referred to as the
"Fund") at November 30, 1996, and the results of each of their operations, the
changes in each of their net assets and the financial highlights, for each of
the periods indicated, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at November 30, 1996 by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmations from brokers were not received, provide a reasonable basis
for the opinion expressed above.

PRICE WATERHOUSE LLP

1177 Avenue of the Americas
New York, New York
January 10, 1997

- ---------------------

112
<PAGE> 108

- ---------------------

SUNAMERICA SERIES TRUST
SHAREHOLDER INFORMATION (UNAUDITED)

SUPPLEMENTAL PROXY INFORMATION: A Special Meeting of the Shareholders of the
SunAmerica Series Trust Fixed Income Portfolio was held on June 3, 1996. The
following is a summary of each proposal presented and the total number of shares
voted:

<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
PROPOSAL FAVOR OF AGAINST ABSTAINED
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Proposal to approve, with respect to the Portfolio,
the continuation of the Investment Advisory and
Management Agreement between SunAmerica Asset
Management Corp. ("SunAmerica") and the Trust on
behalf of the Portfolio.............................. 2,855,767 47,706 155,340
2. Proposal to approve new Subadvisory Agreement between
SunAmerica and Federated Investment Counseling
("Federated") pursuant to which Federated will serve as
subadviser with respect to the assets of the
Portfolio. .......................................... 2,807,264 82,719 168,849
</TABLE>

---------------------

113

<PAGE> 97

PART C

OTHER INFORMATION

Item 24. Financial Statements and Exhibits.

(a) Financial Statements.

Set forth in Part B of Registrant's Statement of Additional
Information are the audited financial statements of SunAmerica
Series Trust with respect to Registrant's fiscal year ended
November 30, 1996. The Financial Highlights are set forth in
Part A of the Prospectus under the caption "Financial
Highlights." No financial statements are included in Part C.

All other financial statements, schedules and historical
financial information are omitted because the conditions
requiring their filing do not exist.

(b) Exhibits.

(1) Declaration of Trust, as amended. Incorporated herein by
reference to Post-Effective Amendment No. 6 to the Registrant's
Registration Statement on Form N-1A (File No. 2-85370) filed on
February 29, 1996.

(2) By-Laws. Incorporated herein by reference to Post-Effective
Amendment No. 6 to the Registrant's Registration Statement on
Form N-1A (File No. 2-85370) filed on February 29, 1996.

(3) Voting Trust Agreement. Inapplicable.

(4) Share of Beneficial Interest. Inapplicable.

(5)(a) Investment Advisory and Management Agreement between
Registrant and SunAmerica Asset Management Corporation.

(5)(b) Subadvisory Agreements. Transmitted herewith are the
subadvisory agreements filed between Davis Selected Advisers,
L.P. and SunAmerica Asset Management Corp., and Putnam
Investment Management, Inc. and SunAmerica Asset Management
Corp. All other agreements are incorporated herein by
reference to Post-Effective Amendment No. 6 to the
Registrant's Registration Statement on Form N-1A (File No.
2-85370) filed on February 29, 1996.

(6) Distribution Agreement. Inapplicable.

<PAGE> 98
(7) Bonus, Profit Sharing, Pension or Similar Contracts.
Inapplicable.

(8) Custodian Contract. Incorporated herein by reference to
Post-Effective Amendment No. 10 to the Registrant's
Registration Statement on Form N-1A (File No. 2-85370) filed on
February 28, 1997.

(9) Fund Participation Agreement between Registrant and Anchor
National Life Insurance Company, on behalf of itself and
Variable Separate Account. Incorporated herein by reference to
Post-Effective Amendment No. 6 to the Registrant's Registration
Statement on Form N-1A (File No. 2-85370) filed on February
29, 1996.

(9)(a) Transfer Agency and Service Agreement filed between the
Registrant and State Street Bank and Trust Company.

(10) Opinion and Consent of Counsel. Inapplicable

(11) Consent of Independent Accountants.

(12) Financial Statements Omitted from Item 23. Inapplicable.

(13) Initial Capitalization Agreement. Inapplicable.

(14) Model Plan. Inapplicable.

(15) Rule 12b-1 Plan. Inapplicable.

(16) Performance Computations. Inapplicable.

(17) Financial Data Schedules.

(1) Power of Attorney Incorporated herein by reference to
Post-Effective Amendment No. 6 to the Registrant's
Registration Statement on Form N-1A (File No. 2-85370) filed on
February 29, 1996.

Item 25. Persons Controlled by or Under Common Control with Registrant.

Incorporated herein by reference to Registrant's Registration Statement
on Form N-1A (File No. 2-85370) filed on November 3, 1992.
<PAGE> 99
Item 26. Number of Holders of Securities.

As of March 31, 1997, the number of record holders of SunAmerica
Series Trust was as follows:

Title of Class Number of Record Holders

Shares of Beneficial Interest 3*

* Held by Variable Separate Account of Anchor National Life Insurance
Company, FS Variable Separate Account of First SunAmerica Life
Insurance Company and SunAmerica Inc.

Item 27. Indemnification.

Article VI of the Registrant's By-Laws relating to the indemnification
of officers and trustees is quoted below:

ARTICLE VI
INDEMNIFICATION

The Trust shall provide any indemnification required by
applicable law and shall indemnify trustees, officers, agents and
employees as follows:

(a) the Trust shall indemnify any director or officer of the Trust who
was or is a party or is threatened to be made a party of any
threatened, pending or completed action, suit or proceeding, whether
civil, criminal, administrative or investigative (other than action by
or in the right of the Trust) by reason of the fact that such Person
is or was such Trustee or officer or an employee or agent of the
Trust, or is or was serving at the request of the Trust as a director,
officer, employee or agent of another corporation, partnership, joint
venture, Trust or other enterprise, against expenses (including
attorneys' fees), judgments, fines and amounts paid in settlement
actually and reasonably incurred by such Person in connection with
such action, suit or proceeding, provided such Person acted in good
faith an in a manner such Person reasonably believed to be in or not
opposed to the best interests of the Trust, and, with respect to any
criminal action or proceeding, had no reasonable cause to believe such
Person's conduct was unlawful. The termination of any action, suit or
proceeding by judgment, order, settlement, conviction or upon a plea
of nolo contendere or its equivalent, shall not, of itself, create a
presumption that the Person did not reasonably believe his or her
actions to be in or not opposed to the best interests of the Trust,
and, with respect to any criminal action or proceeding, had reasonable
cause to believe that such Person's conduct was unlawful.

C-3
<PAGE> 100
(b) The Trust shall indemnify any Trustee or officer of the Trust who
was or is a part or is threatened to be made a party to any threatened,
pending or completed action or suit by or in the right of the Trust to
procure a judgment in its favor by reason of the fact that such Person
is or was such Trustee or officer or an employee or agent of the Trust,
or is or was serving at the request of the Trust as a director,
officer, employee or agent of another corporation, partnership, joint
venture, Trust or other enterprise, against expenses (including
attorneys' fees), actually and reasonably incurred by such Person in
connection with the defense or settlement of such action or suit if
such Person acted in good faith and in a manner such Person reasonably
believed to be in or not opposed to the best interests of the Trust,
except that no indemnification shall be made in respect of any claim,
issue or matter as to which such Person shall have been adjudged to be
liable for negligence or misconduct in the performance of such Person's
duty to the Trust unless and only to the extent that the court in which
such action or suit was brought, or any other court having jurisdiction
in the premises, shall determine upon application that, despite the
adjudication of liability but in view of all circumstances of the case,
such Person is fairly and reasonably entitled to indemnity for such
expenses which such court shall deem proper.

(c) To the extent that a Trustee or officer of the Trust has been
successful on the merits or otherwise in defense of any action, suit
or proceeding referred to in subparagraphs (a) or (b) above or in
defense of any claim, issue or matter therein, such Person shall be
indemnified against expenses (including attorneys' fees) actually and
reasonably incurred by such Person in connection therewith, without
the necessity for the determination as to the standard of conduct as
provided in subparagraph (d).

(d) Any indemnification under subparagraph (a) or (b) (unless ordered
by a court) shall be made by the Trust only as authorized in the
specific case upon a determination that indemnification of the Trustee
or officer is proper in view of the standard of conduct set forth in
subparagraph (a) or (b). Such determination shall be made (i) by the
Board by a majority vote of a quorum consisting of Trustees who were
disinterested and not parties to such action, suit or proceedings, or
(ii) if such a quorum of disinterested Trustees so directs, by
independent legal counsel in a written opinion, and any determination
so made shall be conclusive and binding upon all parties.

(e) Expenses incurred in defending a civil or criminal action, writ
or proceeding may be paid by the Trust in advance

C-4
<PAGE> 101
of the final disposition of such action, suit or proceeding, as
authorized in the particular case, upon receipt of an undertaking by
or on behalf of the Trustee or officer to repay such amount unless it
shall ultimately be determined that such Person is entitled to be
indemnified by the Trust as authorized herein. Such determination
must be made by disinterested Trustees or independent legal counsel.

Prior to any payment being made pursuant to this paragraph, a majority
of quorum of disinterested, non-party Trustees of the Trust, or an
independent legal counsel in a written opinion, shall determine, based
on a review of readily available facts that there is reason to believe
that the indemnitee ultimately will be found entitled to
indemnification.

(f) Agents and employees of the Trust who are not Trustees or
officers of the Trust may be indemnified under the same standards and
procedures set forth above, in the discretion of the Board.

(g) Any indemnification pursuant to this Article shall not be deemed
exclusive of any other rights to which those indemnified may be
entitled and shall continue as to a Person who has ceased to be a
Trustee or officer and shall inure to the benefit of the heirs,
executors and administrators of such a Person.

(h) Nothing in the Declaration or in these By-Laws shall be deemed to
protect any Trustee or officer of the Trust against any liability to
the Trust or to its Shareholders to which such Person would otherwise
be subject by reason of willful malfeasance, bad faith, gross
negligence or reckless disregard of the duties involved in the conduct
of such Person's office.

(i) The Trust shall have power to purchase and maintain insurance on
behalf of any Person against any liability asserted against or
incurred by such Person, whether or not the Trust would have the power
to indemnify such Person against such liability under the provisions
of this Article. Nevertheless, insurance will not be purchased or
maintained by the Trust if the purchase or maintenance of such
insurance would result in the indemnification of any Person in
contravention of any rule or regulation and/or interpretation of the
Securities and Exchange Commission.

* * * * * * * * * * * * * *

The Investment Advisory and Management Agreement provides that
in absence of willful misfeasance, bad faith, gross negligence or
reckless disregard of the duties involved in the conduct of office on
the part of the Investment Adviser (and

C-5
<PAGE> 102
its officers, directors, agents, employees, controlling persons,
shareholders and any other person or entity affiliated with the
Investment Adviser to perform or assist in the performance of its
obligations under each Agreement) the Investment Adviser shall not be
subject to liability to the Trust or to any shareholder of the Trust
for any act or omission in the course of, or connected with, rendering
services, including without limitation, any error of judgment or
mistake or law or for any loss suffered by any of them in connection
with the matters to which each Agreement relates, except to the extent
specified in Section 36(b) of the Investment Company Act of 1940
concerning loss resulting from a breach of fiduciary duty with respect
to the receipt of compensation for services. Certain of the
Subadvisory Agreements provide for similar indemnification of the
Subadviser by the Investment Adviser.

SunAmerica Inc., the parent of Anchor National Life Insurance
Company, provides, without cost to the Fund, indemnification of
individual trustees. By individual letter agreement, SunAmerica Inc.
indemnifies each trustee to the fullest extent permitted by law
against expenses and liabilities (including damages, judgments,
settlements, costs, attorney's fees, charges and expenses) actually
and reasonably incurred in connection with any action which is the
subject of any threatened, asserted, pending or completed action, suit
or proceeding, whether civil, criminal, administrative, investigative
or otherwise and whether formal or informal to which any trustee was,
is or is threatened to be made a party by reason of facts which
include his being or having been a trustee, but only to the extent
such expenses and liabilities are not covered by insurance.

Insofar as indemnification for liabilities arising under the
Securities Act of 1933, as amended, may be permitted to trustees,
officers and controlling persons of the Registrant pursuant to the
foregoing provisions, or otherwise, the Registrant has been advised
that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and
is therefore unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by
the Registrant of expenses incurred or paid by a trustee, officer or
controlling person of the Registrant in the successful defense of any
action, suit or proceeding) is asserted by such trustee, officer or
controlling person in connection with the securities being registered,
the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by
it

C-6
<PAGE> 103
is against public policy as expressed in the Act and will be governed
by the final adjudication of such issue.

Item 28. Business and other Connections of Investment Adviser.

SunAmerica Asset Management Corp. ("SAAMCo"), the Investment Adviser
of the Trust, is primarily in the business of providing investment
management, advisory and administrative services. Reference is made
to the most recent Form ADV and schedules thereto of SAAMCo on file
with the Commission (File No. 801-19813) for a description of the
names and employment of the directors and officers of SAAMCo and other
required information.

Alliance Capital Management L.P., Federated Investment Counseling,
Goldman Sachs Asset Management, Goldman Sachs Asset Management
International, Phoenix Investment Counsel, Inc., Provident Investment
Counsel, Inc., Davis Selected Advisers, L.P., Morgan Stanley Asset
Management Inc. and Federated Investment Counseling, the Subadvisers
of certain of the Portfolios of the Trust, are primarily engaged in
the business of rendering investment advisory services. Reference is
made to the most recent Form ADV and schedules thereto on file with
the Commission for a description of the names and employment of the
directors and officers of Alliance Capital Management L.P., Goldman
Sachs Asset Management, Goldman Sachs Asset Management International,
Phoenix Investment Counsel, Inc., Putnam Investment Management, Inc.,
Davis Selected Advisers, L.P. Morgan Stanley Asset Management Inc. and
Federated Investment Counseling, and other required information:

File No.
Alliance Capital Management L.P. 801-32361
Federated Investment Counseling 801-34611
Goldman Sachs Asset Management 801-16048
Goldman Sachs Asset Management Int'l. 801-38157
Phoenix Investment Counsel, Inc. 801-5995

Putnam Investment Management, Inc. 801-7974

Davis Selected Advisers, L.P. 801-31648
Morgan Stanley Asset Management Inc. 801-15757
Federated Investment Counseling 801-34611

Item 29. Principal Underwriters.

There is no Principal Underwriter for the Registrant.

Item 30. Location of Accounts and Records.

C-7
<PAGE> 104
State Street Bank and Trust Company, 225 Franklin Street, Boston,
Massachusetts 02110, acts as custodian, transfer agent and dividend
paying agent. It maintains books, records and accounts pursuant to
the instructions of the Trust.

SunAmerica Asset Management Corp., is located at The SunAmerica
Center, 733 Third Avenue, New York, New York 10017-3204. Alliance
Capital Management L.P. is located at 1345 Avenue of the Americas, New
York, New York 10105. Goldman Sachs Asset Management and Goldman
Sachs Asset Management International are located at 85 Broad Street,
12th Floor, New York, New York 10005. Morgan Stanley Asset Management
Inc., is located at 1221 Avenue of the Americas, 22nd Floor, New York,
New York 10020. Phoenix Investment Counsel, Inc. is located at One
American Row, Hartford, Connecticut 06115. Putnam Investment
Management, Inc., is located at One Post Office Square, Boston,
Massachusetts 02109. Davis Selected Advisers, L.P. is located at 124
East Marcy Street, Sante Fe, New Mexico 87501. Federated Investment
Counseling is located at Federated Investors Tower, 1001 Liberty
Avenue, Pittsburgh, Pennsylvania 15222-3779. Each of the Investment
Adviser and Subadvisers maintain the books, accounts and records
required to be maintained pursuant to Section 31(a) of the Investment
Company Act of 1940 and the rules promulgated thereunder.

Item 31. Management Services.

None.

Item 32. Undertakings.

Registrant hereby undertakes to:
(c) furnish an investor to whom a prospectus is delivered with a copy
of Registrant's latest annual report to shareholders, upon request and
without charge.

C-8
<PAGE> 105

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, as
amended, and the Investment Company Act of 1940, as amended, Registrant
certifies that it meets all of the requirements for effectiveness of the
Post-Effective Amendment No. 12 to the Registration Statement pursuant to Rule
485(b) under the Securities Act of 1933, as amended, and has duly caused the
Post-Effective Amendment No. 12 to the Registration Statement to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of New
York, and State of New York, on the 7th day of May, 1997.

SUNAMERICA SERIES TRUST

By: /s/ Peter C. Sutton
------------------------
Peter C. Sutton
Vice President

Pursuant to the requirements of the Securities Act of 1933, as
amended, the Post-Effective Amendment No. 12 to Registrant's Registration
Statement has been signed below by the following persons in the capacities and
on the dates indicated:

<TABLE>
<S> <C>
* Trustee, Chairman and May 7, 1997
- ------------------------------ President
James K. Hunt (Principal Executive Officer)

* Senior Vice President, May 7, 1997
- ------------------------------ Treasurer and Controller
Scott L. Robinson (Principal Financial
and Accounting Officer)

* Trustee May 7, 1997
- ------------------------------
Richards D. Barger

* Trustee May 7, 1997
- ------------------------------
Norman J. Metcalfe

*By: /s/ Robert M. Zakem
-------------------------
Robert M. Zakem
Attorney-in-Fact
</TABLE>

<PAGE> 106

SUNAMERICA SERIES TRUST

EXHIBIT INDEX

<TABLE>
<CAPTION>
Exhibit No. Name
----------- ----
<S> <C>
5(a) Investment Advisory and Management Agreement

5(b) Subadvisory Agreements

9(a) Transfer Agency and Service Agreement

11 Consent of Accountants

27(a) Financial Data Schedule

27(b) Financial Data Schedule

27(c) Financial Data Schedule

27(d) Financial Data Schedule

27(e) Financial Data Schedule

27(f) Financial Data Schedule

27(g) Financial Data Schedule

27(h) Financial Data Schedule

27(i) Financial Data Schedule

27(j) Financial Data Schedule

27(k) Financial Data Schedule

27(l) Financial Data Schedule

27(m) Financial Data Schedule

27(n) Financial Data Schedule

27(o) Financial Data Schedule

27(p) Financial Data Schedule

27(q) Financial Data Schedule

27(r) Financial Data Schedule

</TABLE>

<PAGE> 1

EXHIBIT 5(a)

INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT

This INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT is dated as of
September 16, 1992, as amended on August 30, 1994, April 18, 1996 and April 15,
1997, between SUNAMERICA SERIES TRUST, a Massachusetts business trust (the
"Trust") and SUNAMERICA ASSET MANAGEMENT CORP., a Delaware corporation (the
"Adviser" or "SAAMCo").

In consideration of the mutual agreements herein made, the parties
hereto agree as follows:

THE TRUST'S PORTFOLIOS. The Trust is authorized to issue shares in separate
series, with each series representing interests in a separate portfolio of
securities and other assets, and currently offers shares of the series set
forth in Schedule A attached hereto (the "Portfolios"). It is recognized that
additional Portfolios may be added and certain current Portfolios may be
deleted in the future.

DUTIES OF THE ADVISER. The Adviser shall manage the affairs of the Trust as
set forth herein, either by taking such actions itself or by delegating its
duties to a subadviser pursuant to a written subadvisory agreement. Such
duties shall include, but not limited to, continuously providing the Trust with
investment management, including investment research, advice and supervision,
determining which securities shall be purchased or sold by each Portfolio of
the Trust and making purchases and sales of securities on behalf of each
Portfolio. The Adviser's management shall be subject to the control of the
Trustees of the Trust (the "Trustees") and in accordance with the objectives,
policies and restrictions for each such Portfolio set forth in the Trust's
Registration Statement and its current Prospectus and Statement of Additional
Information, as amended from time to time, the requirements of the Investment
Company Act of 1940, as amended (the "Act") and other applicable law, as well
as to the factors affecting the Trust's status as a regulated investment
company under the Internal Revenue Code of 1986, as amended, (the "Code") and
the regulations thereunder and the status of variable contracts under the
diversification requirements set forth in Section 817(h) of the Code and the
regulations thereunder. In performing such duties, the Adviser shall (i)
provide such office space, bookkeeping, accounting, clerical, secretarial and
administrative services (exclusive of, and in addition to, any such service
provided by any others retained by the Trust or any of its Portfolios) and such
executive and other personnel as shall be necessary for the operations of each
Portfolio, (ii) be responsible for the financial and accounting records
required to be maintained by each Portfolio (including those maintained by the
Trust's custodian), and (iii) oversee the performance of services provided to
each Portfolio by others, including the custodian, transfer agent, shareholder
servicing agent and subadviser, if any. The Trust acknowledges that the
Adviser also acts as the manager of other investment companies.

With respect to the Cash Management Portfolio, the Adviser hereby
accepts the responsibilities for making the determinations required by Rule
2a-7 under the Act to be made by the Trustees of the Trust and which are
delegable by the Trustees pursuant to paragraph (e) of such Rule, to the extent
that the Trustees may hereinafter delegate such responsibilities to the
Adviser.
<PAGE> 2
The Adviser may delegate certain of its duties under this Agreement
with respect to a Portfolio to a subadviser pursuant to a written agreement,
subject to the approval of the Trustees and a Portfolio's shareholders, as
required by the Act. The Adviser is solely responsible for payment of any fees
or other charges to a subadviser arising from such delegation and the Trust
shall have no liability therefor.

EXPENSES. The Adviser shall pay all of its expenses arising from the
performance of its obligations under this Agreement and shall pay any salaries,
fees and expenses of the Trustees and any officers of the Trust who are
employees of the Adviser. The Adviser shall not be required to pay any other
expenses of the Trust, including, but not limited to, direct charges relating
to the purchase and sale of portfolio securities, interest charges, fees and
expenses of independent attorneys and auditors, taxes and governmental fees,
cost of stock certificates and any other expenses (including clerical expenses)
of issue, sale, repurchase or redemption of shares, expenses of registering and
qualifying shares for sale, expenses of printing and distributing reports,
notices and proxy materials to shareholders, expenses of data processing and
related services, shareholder recordkeeping and shareholder account service,
expenses of printing and filing reports and other documents filed with
governmental agencies, expenses of printing and distributing prospectuses,
expenses of annual and special shareholders' meetings, fees and disbursements
of transfer agents and custodians, expenses of disbursing dividends and
distributions, fees and expenses of Trustees who are not employees of the
Adviser or its affiliates, membership dues in the Investment Company Institute,
insurance premium dues in the Investment Company Institute, insurance premiums
and extraordinary expenses such as litigation expenses.

COMPENSATION. (a) As compensation for services performed and the facilities
and personnel provided by the Adviser under this Agreement, the Trust will pay
to the Adviser, promptly after the end of each month for the services rendered
by the Adviser during the preceding month, the sum of the amounts set forth in
Schedule A attached hereto calculated in accordance with the average daily net
assets of the indicated Portfolio.

To the extent required by the laws of any state in which the Trust is
subject to an expense guarantee limitation, if the aggregate expenses of any
Portfolio in any fiscal year exceed the specified expense limitation ratios for
that year (calculated on a daily basis), the Adviser agrees to waive such
portion of its advisory fee in excess of the limitation, but such waiver shall
not exceed the full amount of the advisory fee for such year except as may be
elected by Adviser in its discretion. For this purpose, aggregate expenses of
a Portfolio shall include the compensation of the Adviser and all normal
expenses, fees and charges, but shall exclude interest, taxes, brokerage fees
on portfolio transactions, fees and expenses incurred in connection with the
distribution of Trust shares, and extraordinary expenses including litigation
expenses. In the event any amounts are so contributed by the Adviser to the
Trust, the Trust agrees to reimburse the Adviser for any expenses waived,
provided that such reimbursement does not result in increasing the Trust's
aggregate expenses above the aforementioned expense limitation ratios.

The Adviser's fee shall be accrued daily at 1/365th of the applicable
annual rate set forth above. For the purpose of accruing compensation, the net
assets of the Portfolio shall be that determined in the manner and on the dates
set forth in the current prospectus of the Trust and, on days on which the net
assets are not

-2-
<PAGE> 3
so determined, the net asset computation to be used shall be as determined on
the next day on which the net assets shall have been determined.

(b) Upon any termination of this Agreement on a day other than the
last day of the month, the fee for the period from the beginning of the month
in which termination occurs to the date of termination shall be prorated
according to the proportion which such period bears to the full month.

PURCHASE AND SALE OF SECURITIES. The Adviser shall purchase securities from or
though and sell securities to or through such persons, brokers or dealers as
the Adviser shall deem appropriate in order to carry out the policies with
respect to portfolio transactions as set forth in the Trust's Registration
Statement and its current Prospectus or Statement of Additional Information, as
amended from time to time, or as the Trustees may direct from time to time.

Nothing herein shall prohibit the Trustees from approving the payment
by the Trust of additional compensation to others for consulting services,
supplemental research and security and economic analysis.

TERM OF AGREEMENT. This Agreement shall continue in full force and effect with
respect to each Portfolio until two years from the date approved by the
Trustees of the Trust in respect of such Portfolio, and from year to year
thereafter so long as such continuance is approved at least annually (i) by the
Trustees by vote cast in person at a meeting called for the purpose of voting
on such renewal, or by the vote of a majority of the outstanding voting
securities (as defined by the Act) of such Portfolio with respect to which
renewal is to be effected, and (ii) by a majority of the non-interested
Trustees by vote cast in person at a meeting called for the purpose of voting
on such renewal. Any approval of this Agreement or the renewal thereof with
respect to a Portfolio by the vote of a majority of the outstanding voting
securities of that Portfolio, or by the Trustees of the Trust which shall
include a majority of the non-interested Trustees, shall be effective to
continue this Agreement with respect to that Portfolio notwithstanding (a) that
this Agreement or the renewal thereof has not been so approved as to any other
Portfolio, or (b) that this Agreement or the renewal thereof has not been so
approved by the vote of a majority of the outstanding voting securities of the
Trust as a whole.

TERMINATION. This Agreement may be terminated at any time as to a Portfolio,
without payment of any penalty, by the Trustees or by the vote of a majority of
the outstanding voting securities (as defined in the Act) of such Portfolio on
sixty (60) days' written notice to the Adviser. Similarly, the Adviser may
terminate this Agreement without penalty on like notice to the Trust provided,
however, that this Agreement may not be terminated by the Adviser unless
another investment advisory agreement has been approved by the Trust in
accordance with the Act, or after six months' written notice, whichever is
earlier. This Agreement shall automatically terminate in the event of its
assignment (as defined in the Act).

-3-
<PAGE> 4
8.

REPORTS. The Adviser shall report to the Trustees, or to any committee or
officers of the Trust acting pursuant to the authority of the Trustees, at such
times and in such detail as shall be reasonable and as the Board may deem
appropriate in order to enable the Trust to determine that the investment
policies of each Portfolio are being observed and implemented and that the
obligations of the Adviser under this Agreement are being fulfilled. Any
investment program undertaken by the Adviser pursuant to this Agreement and any
other activities undertaken by the Adviser on behalf of the Trust shall at all
times be subject to any directives of the Trustees or any duly constituted
committee or officer of the Trust acting pursuant to the authority of the
Trustees.

RECORDS. The Trust is responsible for maintaining and preserving for such
period or periods as the Securities and Exchange Commission may prescribe by
rules and regulations, such accounts, books and other documents as constitute
the records forming the basis for all reports, including financial statements
required to be filed pursuant to the Act and for the Trust's auditor's
certification relating thereto. The Adviser hereby undertakes and agrees to
maintain in the form and for the periods required by Rule 31a-2 under the Act,
all records relating to the Portfolio's investments that are required to be
maintained pursuant to the requirements of Rule 31a-1 of the Act.

The Adviser and the Trust agree that all accounts, books and other
records maintained and preserved by each as required hereby shall be subject at
any time, and from time to time, to such reasonable periodic, special and other
examinations by the Securities and Exchange Commission, the Trust's auditors,
the Trust or any representative of the Trust, or any governmental agency or
other instrumentality having regulatory authority over the Trust. It is
expressly understood and agreed that the books and records maintained by the
Adviser on behalf of each Portfolio shall, at all times, remain the property of
the Trust.

10.

LIABILITY OF ADVISER. In the absence of willful misfeasance, bad faith, gross
negligence or reckless disregard of obligations or duties ("disabling conduct")
hereunder on the part of the Adviser (and its officers, directors, agents,
employees, controlling persons, shareholders and any other person or entity
affiliated with the Adviser), the Adviser shall not be subject to liability to
the Trust or to any other person for any act or omission in the course of, or
connected with, rendering services hereunder including, without limitation, any
error of judgment or mistake of law or for any loss suffered by any of them in
connection with the matters to which this Agreement relates, except to the
extent specified in Section 36(b) of the Act concerning loss resulting from a
breach of fiduciary duty with respect to the receipt of compensation for
services. Except for such disabling conduct or liability under Section 36(b)
of the Act, the Trust shall indemnify the Adviser (and its officers, directors,
agents, employees, controlling persons, shareholders and any other person or
entity affiliated with the Adviser) from any liability arising from the
Adviser's conduct under this Agreement.

Indemnification to the Adviser or any of its personnel or
affiliates shall be made when (A) a final decision on the merits rendered, by a
court or other body before whom the proceeding was brought, that the person to
be indemnified was not liable by reason of disabling conduct or, (B) in the
absence of such a

-4-
<PAGE> 5
decision, a reasonable determination, based upon a review of the facts, that
the person to be indemnified was not liable by reason of disabling conduct, by
(a) the vote of a majority of a quorum of Trustees who are neither "interested
persons" of the Trust as defined in Section 2(a)(19) of the Act nor parties to
the proceeding ("disinterested, non-party Trustees"), or (b) an independent
legal counsel in a written opinion. The Trust may, by vote of a majority of
the disinterested, non-party Trustees, advance attorneys' fees or other
expenses incurred by officers, Trustees, investment advisers, subadvisers or
principal underwriters, in defending a proceeding upon the undertaking by or on
behalf of the person to be indemnified to repay the advance unless it is
ultimately determined that such person is entitled to indemnification. Such
advance shall be subject to at least one of the following: (i) the person to
be indemnified shall provide adequate security for his undertaking, (ii) the
Trust shall be insured against losses arising by reason of any lawful advances,
or (iii) a majority of a quorum of the disinterested, non- party Trustees, or
an independent legal counsel in a written opinion, shall determine, based on a
review of readily available facts, that there is reason to believe that the
person to be indemnified ultimately will be found entitled to indemnification.

11.

MISCELLANEOUS. Anything herein to the contrary notwithstanding, this Agreement
shall not be construed to require, or to impose any duty upon either of the
parties, to do anything in violation of any applicable laws or regulations.

The Declaration of Trust establishing the Trust, a copy of which is on
file in the office of the Secretary of the Commonwealth of Massachusetts,
provides that the name of the Trust refers to the Trustees collectively as
Trustees, not as individuals or personally; and that no Trustee, shareholder,
officer, employee or agent of the Trust shall be held to any personal
liability, nor shall resort be had to their private property for the
satisfaction of any obligation or claim or otherwise in connection with the
affairs of the Trust or any Portfolio; but that the Trust Estate shall be
liable. Notice is hereby given that nothing contained herein shall be
construed to be binding upon any of the Trustees, officers, or shareholders of
the Trust individually.

IN WITNESS WHEREOF, the Trust and the Adviser have caused this
Agreement to be executed by their duly authorized officers as of the date first
above written.

SUNAMERICA SERIES TRUST

By: /s/ JAMES K. HUNT
--------------------------------------
James K. Hunt
Chairman and President

SUNAMERICA ASSET MANAGEMENT CORP.

By: /s/ PETER A. HARBECK
--------------------------------------
Peter A. Harbeck
President

-5-
<PAGE> 6
SCHEDULE A

<TABLE>
<CAPTION>
FEE RATE
(as a % of average
FUND daily net asset value)
---- ----------------------
<S> <C>
Alliance Growth Portfolio .70% to $ 50MM
.65% next $100MM
.60% next $150MM
.55% next $200MM
.50% over $500MM

Growth/Phoenix Investment .70% to $ 50MM
Counsel Portfolio .65% next $100MM
.60% next $150MM
.55% next $200MM
.50% over $500MM

Balanced/Phoenix Investment .70% to $ 50MM
Counsel Portfolio .65% next $100MM
.60% next $150MM
.55% next $200MM
.50% over $500MM

Growth-Income Portfolio .70% to $ 50MM
.65% next $100MM
.60% next $150MM
.55% next $200MM
.50% over $500MM

Putnam Growth Portfolio .85% to $150MM
.80% next $150MM
.70% over $300MM

Global Equities Portfolio .90% to $ 50MM
.80% next $100MM
.70% next $150MM
.65% over $300MM

Venture Value Portfolio .80% to $100MM
.75% next $400MM
.70% over $500MM

Asset Allocation Portfolio .75% to $ 50MM
.65% next $100MM
.60% next $100MM
.55% over $250MM

Global Bond Portfolio .75% to $ 50MM
.65% next $100MM
.60% next $100MM
.55% over $250MM
</TABLE>

-1-
<PAGE> 7
<TABLE>
<CAPTION>
FEE RATE
(as a % of average
FUND daily net asset value)
---- ----------------------
<S> <C>
High-Yield Bond Portfolio .70% to $ 50MM
.65% next $100MM
.60% next $100MM
.55% over $250MM

Corporate Bond Portfolio .70% to $ 50MM
.60% next $100MM
.55% next $100MM
.50% over $250MM

International Diversified Equities Portfolio 1.00% of Net Assets

Worldwide High Income Portfolio 1.00% of Net Assets

Cash Management Portfolio .55% to $100MM
.50% next $200MM
.45% over $300MM

Federated Value Portfolio .75% to $150MM
.60% next $350MM
.50% over $500MM

Utility Portfolio .75% to $150MM
.60% next $350MM
.50% over $500MM

Aggressive Growth Portfolio .75% to $100MM
.675% next $150MM
.625% next $250MM
.600% over $500MM

SunAmerica Balanced Portfolio .70% to $ 50MM
.65% next $100MM
.60% next $150MM
.55% next $200MM
.50% over $500MM

International Growth and Income Portfolio 1.00% to $150MM
.90% next $150MM
.80% over $300MM

Emerging Markets Portfolio 1.25% of Net Assets

Real Estate Portfolio .80% to $100MM
.75% next $400MM
.70% over $500MM
</TABLE>

April 15, 1997

-2-

<PAGE> 1

EXHIBIT 5(b)

SUBADVISORY AGREEMENT

This SUBADVISORY AGREEMENT is dated as of October 15, 1996, as
amended April 15, 1997, by and between SUNAMERICA ASSET MANAGEMENT CORP., a
Delaware corporation (the "Adviser"), and DAVIS SELECTED ADVISERS, L.P., a
Colorado limited partnership (the "Subadviser").

WITNESSETH:

WHEREAS, the Adviser and SunAmerica Series Trust, a Massachusetts
business trust (the "Trust"), have entered into an Investment Advisory and
Management Agreement dated as of September 16, 1992, (the "Advisory Agreement")
pursuant to which the Adviser has agreed to provide investment management,
advisory and administrative services to the Trust; and

WHEREAS, the Trust is registered under the Investment Company Act of
1940, as amended (the "Act"), as an open-end management investment company and
may issue shares of beneficial interest in separately designated portfolios
representing separate funds with their own investment objectives, policies and
purposes; and

WHEREAS, the Subadviser is engaged in the business of rendering
investment advisory services and is registered as an investment adviser under
the Investment Advisers Act of 1940, as amended; and

WHEREAS, the Adviser desires to retain the Subadviser to furnish
investment advisory services to the investment portfolio or portfolios of the
Trust listed in Schedule A hereto (the "Portfolio(s)"), and the Subadviser is
willing to furnish such services;

NOW, THEREFORE, it is hereby agreed between the parties hereto as
follows:

1. DUTIES OF THE SUBADVISER. (a) The Adviser hereby engages the
services of the Subadviser in furtherance of its Investment Advisory and
Management Agreement. Pursuant to this Subadvisory Agreement and subject to
the oversight and review of the Adviser, the Subadviser will manage the
investment and reinvestment of the assets of each Portfolio listed. The
Subadviser will determine in its discretion and subject to the oversight and
review of the Adviser, the securities to be purchased or sold, will provide the
Adviser with records concerning its activities which the Adviser or the Trust
is required to maintain, and will render regular reports to the Adviser and to
officers and Trustees of the Trust concerning its discharge of the foregoing
responsibilities. The Subadviser shall discharge the foregoing
responsibilities subject to the control of the officers and the Trustees of the
Trust and in compliance with such policies as the Trustees of the Trust may
from time to time establish, and in compliance with the objectives, policies,
and limitations for the Portfolio(s) set forth in the Trust's current
prospectus and statement of additional information, and applicable laws and
regulations. The Adviser shall inform the Subadviser of any requirements of
the California Insurance Code (or other applicable insurance Code, if any) and
any regulations thereunder that operate to limit or restrict the investments
the Portfolio(s) may otherwise make, and to inform the Subadviser promptly of
any changes in such requirements.
<PAGE> 2
The Subadviser represents and warrants to the Adviser that
each of the Portfolios set forth in Schedule A will at all times be operated
and managed (1) in compliance with all applicable federal and state laws
governing its operations and investments; (2) so as not to jeopardize either
the treatment of the Polaris variable annuity contracts issued by Variable
Separate Account (File No. 33-47473; hereinafter "Contracts") as annuity
contracts for purposes of the Internal Revenue Code of 1986, as amended (the
"Code"), or the eligibility of the Contracts to qualify for sale to the public
in any state where they may otherwise be sold; and (3) to minimize any taxes
and/or penalties payable by the Trust or such Portfolio. Without limiting the
foregoing, the Subadviser represents and warrants (1) qualification, election
and maintenance of such election by each Portfolio to be treated as a
"regulated investment company" under subchapter M, chapter 1 of the Code, and
(2) compliance with (a) the provisions of the Act and rules adopted thereunder;
(b) the diversification requirements specified in the Internal Revenue
Service's regulations under Section 817(h) of the Code; (c) applicable state
insurance laws; (d) applicable federal and state securities, commodities and
banking laws; and (e) the distribution requirements necessary to avoid payment
of any excise tax pursuant to Section 4982 of the Code. The Subadviser further
represents and warrants that to the extent that any statements or omissions
made in any Registration Statement for the Contracts or shares of the Trust, or
any amendment or supplement thereto, are made in reliance upon and in
conformity with information furnished by the Subadviser expressly for use
therein, such Registration Statement and any amendments or supplements thereto
will, when they become effective, conform in all material respects to the
requirements of the Securities Act of 1933 and the rules and regulations of the
Commission thereunder (the "1933 Act") and the Act and will not contain any
untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein not
misleading.

(b) In performing its investment advisory services,
Subadviser, while remaining ultimately responsible for management of the
portion of the assets of the Portfolio allocated to it, may delegate any of its
responsibilities to one of its affiliates, including Davis Selected Advisers -
NY, Inc., its New York affiliate.

2. PORTFOLIO TRANSACTIONS. The Subadviser is authorized to
select the brokers or dealers that will execute the purchases and sales of
portfolio securities and is directed to use its best efforts to obtain the best
price and execution. In selecting such broker or dealers, the Subadviser shall
consider all relevant factors, including price (including the applicable
brokerage commission or dealer spread), the size of the order, the nature of
the market for the security or other investment, the timing of the transaction,
the reputation, experience and financial stability of the broker or dealer
involved, the quality of the service, the difficulty of execution, the
execution capabilities and operations facilities of the firm involved, and the
firm's risk in positioning a block of securities. Subject to such policies as
the Trustees may determine and consistent with Section 28(e) of the Securities
Exchange Act of 1934, as amended, the Subadviser shall not be deemed to have
acted unlawfully or to have breached

-2-
<PAGE> 3
any duty created by this Agreement or otherwise solely by reason of the
Subadviser's having caused a Portfolio to pay a member of an exchange, broker
or dealer an amount of commission for effecting a securities transaction in
excess of the amount of commission another member of an exchange, broker or
dealer would have charged for effecting that transaction, if the Subadviser
determines in good faith that such amount of commission was reasonable in
relation to the value of the brokerage and research services provided by such
member of an exchange, broker or dealer viewed in terms of either that
particular transaction or the Subadviser's overall responsibilities with
respect to such Portfolio and to other clients as to which the Subadviser
exercises investment discretion. The Subadviser will promptly communicate to
the Adviser and to the officers and the Trustees of the Trust such information
relating to portfolio transactions as they may reasonably request.

3. COMPENSATION OF THE SUBADVISER. The Subadviser shall not be
entitled to receive any payment from the Trust and shall look solely and
exclusively to the Adviser for payment of all fees for the services rendered,
facilities furnished and expenses paid by it hereunder. As full compensation
for the Subadviser under this Agreement, the Adviser agrees to pay the
Subadviser a fee at the annual rates set forth in Schedule A hereto with
respect to each Portfolio listed thereon. Such fee shall be accrued daily and
paid monthly as soon as practicable after the end of each month (i.e., the
applicable annual fee rate divided by 365 applied to each prior days' net
assets in order to calculate the daily accrual). For purposes of calculating
the Subadviser's fee, the average daily net asset value of a Portfolio shall be
determined by taking an average of all determinations of such net asset value
during the month. If the Subadviser shall provide its services under this
Agreement for less than the whole of any month, the foregoing compensation
shall be prorated.

The Subadviser, not the Adviser or the Trust, will pay Davis
Selected Advisers - NY, Inc., or any other affiliate the services of which are
utilized hereunder, all of such affiliate's reasonable direct and indirect
costs associated with maintenance of an office and performance of such
services.

To the extent required by the laws of any state in which the
Trust is subject to an expense guarantee limitation, if the aggregate expenses
of any Portfolio in any fiscal year exceed the specified expense limitation
ratios for that year (calculated on a daily basis), as a result of which the
Adviser is required to reduce or refund its advisory and management fee payable
by the Portfolio, the Subadviser agrees to waive such portion of its
subadvisory fee in the same proportion as the fees waived by the Adviser bear
to the total advisory and management fee paid by the Portfolio. Such waiver,
however, shall not exceed the full amount of the subadvisory fee for such year
except as may be elected by the Subadviser in its discretion. For this
purpose, aggregate expenses of a Portfolio shall include the compensation of
the Adviser and all normal expenses, fees and charges, but shall exclude
interest, taxes, brokerage fees on portfolio transactions, fees and expenses
incurred in connection with the distribution of Trust shares, and extraordinary
expenses including litigation expenses. In the event any amounts are so
contributed by the Subadviser to the Adviser, the Adviser agrees to reimburse
the Subadviser for any expenses waived, provided that the Adviser has been
reimbursed by the Trust.

- 3 -
<PAGE> 4
4. REPORTS. The Adviser and the Subadviser agree to furnish to
each other, if applicable, current prospectuses, statements of additional
information, proxy statements, reports of shareholders, certified copies of
their financial statements, and such other information with regard to their
affairs and that of the Trust as each may reasonably request.

5. STATUS OF THE SUBADVISER. The services of the Subadviser to
the Adviser and the Trust are not to be deemed exclusive, and the Subadviser
shall be free to render similar services to others so long as its services to
the Trust are not impaired thereby. The Subadviser shall be deemed to be an
independent contractor and shall, unless otherwise expressly provided or
authorized, have no authority to act for or represent the Trust in any way or
otherwise be deemed an agent of the Trust.

6. CERTAIN RECORDS. The Subadviser hereby undertakes and agrees
to maintain, in the form and for the period required by Rule 31a-2 under the
Act, all records relating to the investments of the Portfolio(s) that are
required to be maintained by the Trust pursuant to the requirements of Rule
31a-1 of that Act. Any records required to be maintained and preserved
pursuant to the provisions of Rule 31a-1 and Rule 31a-2 promulgated under the
Act which are prepared or maintained by the Subadviser on behalf of the Trust
are the property of the Trust and will be surrendered promptly to the Trust or
the Adviser on request.

The Subadviser agrees that all accounts, books and other
records maintained and preserved by it as required hereby shall be subject at
any time, and from time to time, to such reasonable periodic, special and other
examinations by the Securities and Exchange Commission, the Trust's auditors,
the Trust or any representative of the Trust, the Adviser, or any governmental
agency or other instrumentality having regulatory authority over the Trust.

7. REFERENCE TO THE SUBADVISER. Neither the Trust nor the
Adviser or any affiliate or agent thereof shall make reference to or use the
name of the Subadviser or any of its affiliates in any advertising or
promotional materials without the prior approval of the Subadviser, which
approval shall not be unreasonably withheld.

8. INDEMNIFICATION. The Adviser agrees to indemnify and hold
harmless the Subadviser and its affiliates and each of its directors and
officers and each person, if any, who controls the Subadviser within the
meaning of Section 15 of the 1933 Act against any and all losses, claims,
damages, liabilities or litigation (including legal and other expenses), to
which the Subadviser or its affiliates or such directors, officers or
controlling person may become subject under the 1933 Act, under any other
statute, at common law or otherwise, which may be based upon any wrongful act
or breach of this Agreement by the Adviser; provided, however, that in no case
is the Adviser's indemnity in favor of any person deemed to protect such person
against any liability to which such person would otherwise be subject by reason
of willful misfeasance, bad faith, or gross negligence in the performance of
his, her or its duties or by reasons of his, her or its reckless disregard of
obligations and duties under this Agreement.

The Subadviser agrees to indemnify and hold harmless the
Adviser and its affiliates and each of its directors and officers and each
person, if any, who controls the

- 4 -
<PAGE> 5
Adviser within the meaning of Section 15 of the 1933 Act against any and all
losses, claims, damages, liabilities or litigation (including legal and other
expenses), to which the Adviser or its affiliates or such directors, officers
or controlling person may become subject under the 1933 Act, under other
statutes, at common law or otherwise, which may be based upon (i) any wrongful
act or breach of this Agreement by the Subadviser, or (ii) any failure by the
Subadviser to comply with the representations and warranties set forth in
Section 1 of this Agreement; provided, however, that in no case is the
Subadviser's indemnity in favor of any person deemed to protect such other
persons against any liability to which such person would otherwise be subject
by reasons of willful misfeasance, bad faith, or gross negligence in the
performance of his, her or its duties or by reason of his, her or its reckless
disregard of obligation and duties under this Agreement.

9. TERM OF THE AGREEMENT. This Agreement shall continue in full
force and effect with respect to each Portfolio until the earlier of (a) two
years from the date this Agreement is approved by the Trustees, or (b) the
first meeting of the shareholders of the Portfolio of the Trust after the date
hereof. If approved at such meeting by the affirmative vote of a majority of
the outstanding voting securities (as defined in the Act), of the Portfolio
with respect to such Portfolio, voting separately from any other series of the
Trust, this Agreement shall continue in full force and effect with respect to
such Portfolio from year to year thereafter so long as such continuance is
specifically approved at least annually (i) by the vote of a majority of those
Trustees of the Trust who are not parties to this Agreement or interested
persons of any such party, cast in person at a meeting called for the purpose
of voting on such approval, and (ii) by the Trustees of the Trust or by vote of
a majority of the outstanding voting securities of the Portfolio voting
separately from any other series of the Trust, provided, however, that if the
shareholders fail to approve the Agreement as provided herein, the Subadviser
may continue to serve hereunder in the manner and to the extent permitted by
the Act and rules thereunder. The foregoing requirement that continuance of
this Agreement be "specifically approved at least annually" shall be construed
in a manner consistent with the Act and the rules and regulations thereunder.

With respect to each Portfolio, this Agreement may be
terminated at any time, without payment of penalty by the Portfolio or the
Trust, by vote of a majority of the Trustees, or by vote of a majority of the
outstanding voting securities (as defined in the Act) of the Portfolio, voting
separately from any other series of the Trust, or by the Adviser, on not less
than 30 nor more than 60 days' written notice to the Subadviser. With respect
to each Portfolio, this Agreement may be terminated by the Subadviser at any
time, without the payment of any penalty, on 90 days' written notice to the
Adviser and the Trust; provided, however, that this Agreement may not be
terminated by the Subadviser unless another subadvisory agreement has been
approved by the Trust in accordance with the Act, or after six months' written
notice, whichever is earlier. The termination of this Agreement with respect
to any Portfolio or the addition of any Portfolio to Schedule A hereto (in the
manner required by the Act) shall not affect the continued effectiveness of
this Agreement with respect to each other Portfolio subject hereto. This
Agreement shall automatically terminate in the event of its assignment (as
defined by the Act).

This Agreement will also terminate in the event that the
Advisory Agreement by and between the Trust and the Adviser is terminated.

- 5 -
<PAGE> 6
10. SEVERABILITY. If any provision of this Agreement shall be
held or made invalid by a court decision, statute, rule or otherwise, the
remainder of this Agreement shall not be affected thereby.

11. AMENDMENTS. This Agreement may be amended by mutual consent
in writing, but the consent of the Trust must be obtained in conformity the
requirements of the Act.

12. GOVERNING LAW. This Agreement shall be construed in
accordance with the laws of the State of New York and the applicable provisions
of the Act. To the extent the applicable laws of the State of New York, or any
of the provisions herein, conflict with the applicable provisions of the Act,
the latter shall control.

13. PERSONAL LIABILITY. The Declaration of the Trust establishing
the Trust (the "Declaration"), is on file in the office of the Secretary of the
Commonwealth of Massachusetts, and, in accordance with that Declaration, no
Trustee, shareholder, officer, employee or agent of the Trust shall be held to
any personal liability, nor shall resort be had to their private property for
satisfaction of any obligation or claim or otherwise in connection with the
affairs of the Trust, but the "Trust Property" only shall be liable.

14. SEPARATE SERIES. Pursuant to the provisions of the
Declaration, each portfolio is a separate series of the Trust, and all debts,
liabilities, obligations and expenses of a particular portfolio shall be
enforceable only against the assets of that portfolio and not against the
assets of any other portfolio or of the Trust as a whole.

15. NOTICES. All notices shall be in writing and deemed properly
given when delivered or mailed by United States certified or registered mail,
return receipt requested, postage prepaid, addressed as follows:

Subadviser: Davis Selected Advisers, L.P.
124 E. Marcy Street
P.O. Box 1688
Santa Fe, NM 87504-1688
Attention: Edward A. Leskowicz, Jr.
Executive Vice President

Adviser: SunAmerica Asset Management Corp.
733 Third Avenue
New York, New York 10017
Attention: Robert M. Zakem
Senior Vice President
and General Counsel

with a copy to: SunAmerica Inc.
1 SunAmerica Center
Century City
Los Angeles, California 90067-6022
Attention: Susan L. Harris
Vice President, Associate
General Counsel and
Secretary

- 6 -
<PAGE> 7
IN WITNESS WHEREOF, the parties have caused their respective duly
authorized officers to execute this Agreement as of the date first above
written.

SUNAMERICA ASSET MANAGEMENT CORP.

By: /s/ PETER A. HARBECK
---------------------------------
Name: Peter A. Harbeck
Title: President

DAVIS SELECTED ADVISERS, L.P.

By: /s/ CARL L. LUFF
---------------------------------
Name: Carl L. Luff
Title: President

- 7 -
<PAGE> 8
SCHEDULE A

<TABLE>
<CAPTION>
FEE
(AS PERCENTAGE OF
AVERAGE DAILY NET ASSETS OF
PORTFOLIO THE PORTFOLIO)
- --------- --------------
<S> <C> <C>
Venture Value .45% - first $100MM
.40% - next $400MM
.35% - over $500MM

Real Estate .45% - first $100MM
.40% - next $400MM
.35% - over $500MM
</TABLE>

April 17, 1997
<PAGE> 9

Exhibit 5(b)

SUBADVISORY AGREEMENT

This SUBADVISORY AGREEMENT is dated as of April 15, 1997 by
and between SUNAMERICA ASSET MANAGEMENT CORP., a Delaware corporation (the
"Adviser"), and PUTNAM INVESTMENT MANAGEMENT, INC., a Massachusetts corporation
(the "Subadviser").

WITNESSETH:

WHEREAS, the Adviser and SunAmerica Series Trust, a Massachusetts
business trust (the "Trust"), have entered into an Investment Advisory and
Management Agreement dated as of September 16, 1992, as amended (the "Advisory
Agreement"), pursuant to which the Adviser has agreed to provide investment
management, advisory and administrative services to the Trust; and

WHEREAS, the Trust is registered under the Investment Company Act of
1940, as amended (the "Act"), as an open-end management investment company and
may issue shares of beneficial interest, no par value per share, in separately
designated portfolios representing separate funds with their own investment
objectives, policies and purposes; and

WHEREAS, the Subadviser is engaged in the business of rendering
investment advisory services and is registered as an investment adviser under
the Investment Advisers Act of 1940, as amended; and

WHEREAS, the Adviser desires to retain the Subadviser to furnish
investment advisory services to the investment portfolio or portfolios of the
Trust listed on Schedule A attached hereto (the "Portfolio(s)"), and the
Subadviser is willing to furnish such services;

NOW, THEREFORE, it is hereby agreed between the parties hereto as
follows:

1. DUTIES OF THE SUBADVISER. The Adviser hereby engages the
services of the Subadviser in furtherance of its Investment Advisory and
Management Agreement with the Trust. Pursuant to this Subadvisory Agreement
and subject to the oversight and review of the Adviser, the Subadviser will
manage the investment and reinvestment of the assets of each Portfolio listed
on Schedule A attached hereto. The Subadviser will determine in its discretion
and subject to the oversight and review of the Adviser, the securities to be
purchased or sold, will provide the Adviser with records concerning its
activities which the Adviser or the Trust is required to maintain, and will
render regular reports to the Adviser and to officers and Trustees of the Trust
concerning its discharge of the foregoing responsibilities. The Subadviser
shall discharge the foregoing responsibilities subject to the control of the
officers and the Trustees of the Trust and in compliance with such policies as
the Trustees of the Trust may from time to time establish as delivered in
writing to the Subadviser, and in compliance with (a) the objectives, policies,
and limitations for the Portfolio(s) set forth in the Trust's current
prospectus and statement of additional information as delivered to the
Subadviser, and (b) applicable laws and regulations.

The Subadviser agrees that it will operate and manage the
Portfolio set forth in Schedule A (1) in compliance with all applicable federal
and state laws governing the Subadviser's
<PAGE> 10
management of the Portfolio and investments; and (2) so as not to jeopardize
either the treatment of the SunAmerica Series Trust variable annuity contracts
issued by Variable Separate Account and FS Variable Separate Account (File
Nos. 33-47473 and 33-85014, respectively; hereinafter "Contracts") as annuity
contracts for purposes of the Internal Revenue Code of 1986, as amended (the
"Code"). Without limiting the foregoing, the Subadviser agrees to manage the
Portfolio in compliance with (a) the provisions of the Act and rules adopted
thereunder; (b) the diversification requirements specified in the Internal
Revenue Service's regulations under Section 817(h) of the Code; (c) applicable
state insurance laws; and (d) applicable federal and state securities,
commodities and banking laws; provided that Adviser shall provide Subadviser
with written direction as to the requirements of applicable state insurance
laws and applicable federal and state banking laws. For purposes of the
preceding sentence, disclosure in the Trust's prospectus and/or statement of
additional information of applicable state insurance laws and regulations and
applicable federal and state banking laws and regulations shall constitute
"written direction" thereof. The Adviser acknowledges and agrees that the
Subadviser's compliance with its obligations under this Agreement will be
based, in part, on information supplied by the Adviser, or an agent thereof, as
to each Portfolio, including but not limited to, portfolio security lot level
realized and unrealized gain/loss allocation. The Adviser agrees that all such
information will be supplied on a timely basis. The Subadviser further
represents and warrants that to the extent that any statements or omissions
made in any Registration Statement for the Contracts or shares of the Trust, or
any amendment or supplement thereto, are made in reliance upon and in
conformity with information furnished by the Subadviser expressly for use
therein, such Registration Statement and any amendments or supplements thereto
will, when they become effective, conform in all material respects to the
requirements of the Securities Act of 1933 and the rules and regulations of the
Commission thereunder (the "1933 Act") and the Act and will not contain any
untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein not
misleading.

The Subadviser accepts such employment and agrees, at its own
expense, to render the services set forth herein and to provide the office
space, furnishings, equipment and personnel required by it to perform such
services on the terms and for the compensation provided in this Agreement. The
Subadviser shall not have any responsibility for the administrative affairs of
the Portfolio, including any responsibility for the calculation of the net
asset value of the Portfolio's shares or shareholder accounting services;
provided, however, that the Subadviser shall, as requested from time to time by
the Adviser, assist the Adviser in obtaining pricing information relating to
the Portfolio's investment securities.

2. PORTFOLIO TRANSACTIONS. The Subadviser is responsible for
decisions to buy or sell securities and other investments of the assets of each
Portfolio, broker-dealers and futures commission merchants' selection, and
negotiation of brokerage commission and futures commission merchants' rates.
As a general matter, in executing portfolio transactions, the Subadviser may
employ or deal with such broker- dealers or futures commission merchants as
may, in the Subadviser's best judgement, provide prompt and reliable execution
of the transactions at favorable prices and reasonable commission rates. In
selecting such broker-dealers or futures commission merchants, the Subadviser
shall consider all relevant factors including price (including the applicable
brokerage commission, dealer spread or futures commission merchant rate), the
size of the order, the nature of the market for the security or other
investment, the timing of the transaction, the reputation, experience and
financial stability of the broker-dealer or futures commission merchant
involved, the quality of the service, the difficulty of

-2-
<PAGE> 11
execution, the execution capabilities and operational facilities of the firm
involved, and, in the case of securities, the firm's risk in positioning a
block of securities. Subject to such policies as the Trustees may determine
and consistent with Section 28(e) of the Securities Exchange Act of 1934, as
amended (the "1934 Act"), the Subadviser shall not be deemed to have acted
unlawfully or to have breached any duty created by this Agreement or otherwise
solely by reason of the Subadviser's having caused a Portfolio to pay a member
of an exchange, broker or dealer an amount of commission for effecting a
securities transaction in excess of the amount of commission another member of
an exchange, broker or dealer would have charged for effecting that
transaction, if the Subadviser determines in good faith that such amount of
commission was reasonable in relation to the value of the brokerage and
research services provided by such member of an exchange, broker or dealer
viewed in terms of either that particular transaction or the Subadviser's
overall responsibilities with respect to such Portfolio and to other clients as
to which the Subadviser exercises investment discretion. In accordance with
Section 11(a) of the 1934 Act and Rule 11a2-2(T) thereunder, and subject to any
other applicable laws and regulations including Section 17(e) of the Act and
Rule 17e-1 thereunder, the Subadviser may engage its affiliates, the Adviser
and its affiliates or any other subadviser to the Trust and its respective
affiliates, as broker-dealers or futures commission merchants to effect
portfolio transactions in securities and other investments for a Portfolio.
The Subadviser will promptly communicate to the Adviser and to the officers and
the Trustees of the Trust such information relating to portfolio transactions
as they may reasonably request. To the extent consistent with applicable law,
the Subadviser may aggregate purchase or sell orders for the Portfolio with
contemporaneous purchase or sell orders of other clients of the Subadviser or
its affiliated persons. In such event, allocation of the securities so
purchased or sold, as well as the expenses incurred in the transaction, will
be made by the Subadviser in the manner the Subadviser determines to be
equitable and consistent with its and its affiliates' fiduciary obligations to
the Portfolio and to such other clients. The Adviser hereby acknowledges that
such aggregation of orders may not result in more favorable pricing or lower
brokerage commissions in all instances.

4. OTHER SERVICES. At the request of the Trust or the Adviser,
the Subadviser in its discretion may make available to the Trust, office
facilities, equipment, personnel and other services. Such office facilities,
equipment, personnel and services shall be provided for or rendered by the
Subadviser and billed to the Trust or the Adviser at the Subadviser's cost.

- 3 -
<PAGE> 12
5. REPORTS. The Trust, the Adviser and the Subadviser agree to
furnish to each other, if applicable, current prospectuses, statements of
additional information, proxy statements, reports of shareholders, certified
copies of their financial statements, and such other information with regard to
their affairs and that of the Trust as each may reasonably request.

6. STATUS OF THE SUBADVISER. The services of the Subadviser to
the Adviser and the Trust are not to be deemed exclusive, and the Subadviser
shall be free to render similar services to others so long as its services to
the Trust are not impaired thereby. The Subadviser shall be deemed to be an
independent contractor and shall, unless otherwise expressly provided or
authorized, have no authority to act for or represent the Trust in any way or
otherwise be deemed an agent of the Trust.

7. CERTAIN RECORDS. While the Subadviser is not being engaged to
serve as the Trust's official record keeper, the Subadviser nevertheless hereby
undertakes and agrees to maintain, in the form and for the period required by
Section 204 of the Advisers Act and Rule 204- 2 thereunder, all records
relating to the investments of the Portfolio(s) that are required to be
maintained by the Subadviser pursuant to the requirements of Rule 204-2 under
the Advisers Act. The Subadviser will also, in connection with the purchase
and sale of securities for each Portfolio, arrange for the transmission to the
custodian for the Trust on a daily basis, such confirmation, trade tickets, and
other documents and information, that identify securities to be purchased or
sold on behalf of the Portfolio, as may be reasonably necessary to enable the
custodian to perform its administrative and recordkeeping responsibilities with
respect to the Portfolio.

8. REFERENCE TO THE SUBADVISER. The Adviser covenants as
follows:

(a) The Adviser will (and will cause its affiliates
(including the Trust) (each an "Affiliate") to) use the name "Putnam Investment
Management", "Putnam Investments", "Putnam" or any derivation thereof only for
so long as this Agreement remains in effect. At such times as this Agreement
is no longer in effect, the Adviser will, and will cause each Affiliate to,
cease using any such name or any other name indicating that any Portfolio is
advised by or otherwise connected to the Subadviser.

(b) It will not, and will cause its Affiliates to not,
refer to the Subadviser or any Affiliate in any sales literature or promotional
material except with the prior approval of the Subadviser. In the case of
materials, such as the portfolio's prospectus, required by law to be prepared,
such approval shall not be unreasonably withheld.

(c) It will permit the Portfolios to be used as a funding
vehicle only for insurance contracts issued by SunAmerica Inc. or any of its
affiliates.

- 4 -
<PAGE> 13
(d) It will not (and will cause it Affiliates to not)
engage in marketing programs (written or otherwise) directed toward Putnam
Capital Manager Annuity Contract ("PCM") which directly solicit transfers from
PCM to the Adviser's products or those of its Affiliates. For purposes of the
foregoing, general marketing efforts by SunAmerica Inc. and its affiliates
shall not constitute a direct solicitation of PCM contract holders. The
Adviser will not (and will cause its Affiliates to not) create or use marketing
materials which provide direct comparisons between PCM and the Adviser's
products or those of any of its Affiliates. The Adviser, in connection with
any exchange program, will not (and will cause its Affiliates to not) reimburse
voluntarily, or enter into any contract or policy after the date hereof
providing for the reimbursement of, any deferred sales charges to encourage
the transfer of assets from PCM to the Adviser's products or those of any
Affiliate. For purposes hereof, the term "Affiliate" shall not be construed to
include agents of SunAmerica Inc. or affiliates thereof, who are not employees
of such entities.

9. LIABILITY OF THE SUBADVISER. (a) In the absence of willful
misfeasance, bad faith, gross negligence or reckless disregard of obligations
or duties ("disabling conduct") hereunder on the part of the Subadviser (and
its officers, directors, agents, employees, controlling persons, shareholders
and any other person or entity affiliated with the Subadviser) the Subadviser
shall not be subject to liability to the Trust, any shareholder of the Trust or
the Adviser for any act or omission in the course of, or connected with,
rendering services hereunder, including without limitation, any error of
judgment or mistake of law or for any loss suffered by any of them in
connection with the matters to which this Agreement relates. Except for such
disabling conduct, the Adviser shall indemnify the Subadviser (and its
officers, directors, partners, agents, employees, controlling persons,
shareholders and any other person or entity affiliated with the Subadviser)
(collectively, the "Indemnified Parties") from any liability arising from the
Subadviser's conduct under this Agreement.

(b) The Subadviser agrees to indemnify and hold harmless
the Adviser and its affiliates and each of its directors and officers and each
person, if any, who controls the Adviser within the meaning of Section 15 of
the 1933 Act against any and all losses, claims, damages, liabilities or
litigation (including reasonable legal and other expenses), to which the
Adviser or its affiliates or such directors, officers or controlling persons
may become subject under the 1933 Act, under other statutes, at common law or
otherwise, which may be based upon (i) any wrongful act or material breach of
this Agreement by the Subadviser resulting from Subadviser's disabling conduct,
or (ii) any untrue statement of a material fact in the Trust's registration
statement or omission to state a material fact required to be stated therein or
necessary to make the statement therein not misleading, if such statement or
omission was made in reliance on information furnished by the Subadviser to use
in such registration statement, provided, however, that in no case is the
Subadviser's indemnity in favor of any person deemed to protect such other
persons against any liability to which such person would otherwise be subject
by reasons of willful misfeasance, bad faith, or gross negligence in the
performance of his, her or its duties or by reason of his, her or its reckless
disregard of obligation and duties under this Agreement.

10. PERMISSIBLE INTERESTS. Trustees and agents of the Trust are
or may be interested in the Subadviser (or any successor thereof) as directors,
partners, officers, or shareholders, or otherwise; directors, partners,
officers, agents, and shareholders of the Subadviser are or may be interested
in the Trust as trustees, or otherwise; and the Subadviser (or any successor)
is or may be interested in the Trust in some manner.

- 5 -
<PAGE> 14
11. TERM OF THE AGREEMENT. This Agreement shall continue in full
force and effect with respect to each Portfolio until the earlier of (a) two
years from the date this Agreement is approved by the Trustees, or (b) the
first meeting of the shareholders of the Portfolio of the Trust after the date
hereof. If approved at such meeting by the affirmative vote of a majority of
the outstanding voting securities (as defined in the Act), of the Portfolio
with respect to such Portfolio, voting separately from any other series of the
Trust, this Agreement shall continue in full force and effect with respect to
such Portfolio from year to year thereafter so long as such continuance is
specifically approved at least annually (i) by the vote of a majority of those
Trustees of the Trust who are not parties to this Agreement or interested
persons of any such party, cast in person at a meeting called for the purpose
of voting on such approval, and (ii) by the Trustees of the Trust or by vote of
a majority of the outstanding voting securities of the Portfolio voting
separately from any other series of the Trust, provided, however, that if the
shareholders fail to approve the Agreement as provided herein, the Subadviser
may continue to serve hereunder in the manner and to the extent permitted by
the Act and rules thereunder. The foregoing requirement that continuance of
this Agreement be "specifically approved at least annually" shall be construed
in a manner consistent with the Act and the rules and regulations thereunder.

With respect to each Portfolio, this Agreement may be
terminated at any time, without payment of a penalty by the Portfolio or the
Trust, by vote of a majority of the Trustees, or by vote of a majority of the
outstanding voting securities (as defined in the Act) of the Portfolio, voting
separately from any other series of the Trust, or by the Adviser, on not less
than 30 nor more than 60 days' written notice to the Subadviser. With respect
to each Portfolio, this Agreement may be terminated by the Subadviser at any
time, without the payment of any penalty, on 60 days' written notice to the
Adviser and the Trust. The termination of this Agreement with respect to any
Portfolio or the addition of any Portfolio to Schedule A hereto (in the manner
required by the Act) shall not affect the continued effectiveness of this
Agreement with respect to each other Portfolio subject hereto. This Agreement
shall automatically terminate in the event of its assignment (as defined by the
Act).

This Agreement will also terminate in the event that the
Advisory Agreement by and between the Trust and the Adviser is terminated.

12. SEVERABILITY. If any provision of this Agreement shall be
held or made invalid by a court decision, statute, rule or otherwise, the
remainder of this Agreement shall not be affected thereby.

13. AMENDMENTS. This Agreement may be amended by mutual consent
in writing, but the consent of the Trust must be obtained in conformity with
the requirements of the Act.

14. GOVERNING LAW. This Agreement shall be construed in
accordance with the laws of the State of New York and the applicable provisions
of the Act. To the extent the applicable laws of the State of New York, or any
of the provisions herein, conflict with the applicable provisions of the Act,
the latter shall control.

15. PERSONAL LIABILITY. The Declaration of the Trust establishing
the Trust (the "Declaration"), is on file in the office of the Secretary of the
Commonwealth of Massachusetts, and, in accordance with that Declaration, no
Trustee, shareholder, officer, employee or agent of

- 6 -
<PAGE> 15
the Trust shall be held to any personal liability, nor shall resort be had to
their private property for satisfaction of any obligation or claim or otherwise
in connection with the affairs of the Trust, but the "Trust Property" only
shall be liable.

16. SEPARATE SERIES. Pursuant to the provisions of the
Declaration, each Portfolio is a separate series of the Trust, and all debts,
liabilities, obligations and expenses of a particular Portfolio shall be
enforceable only against the assets of that Portfolio and not against the
assets of any other Portfolio or of the Trust as a whole.

17. NOTICES. All notices shall be in writing and deemed properly
given when delivered or mailed by United States certified or registered mail,
return receipt requested, postage prepaid, addressed as follows:

Subadviser: Putnam Investment Management, Inc.
One Post Office Square
Boston, MA 02109
Attn: General Counsel

Adviser: SunAmerica Asset Management Corp.
The SunAmerica Center
733 Third Avenue, Third Floor
New York, NY 10017
Attention: Robert M. Zakem
Senior Vice President and
General Counsel

with a copy to: SunAmerica Inc.
1 SunAmerica Center
Century City
Los Angeles, CA 90067-6022
Attention: Susan L. Harris
Senior Vice President,
General Counsel - Corporate
Affairs and Secretary

- 7 -
<PAGE> 16
IN WITNESS WHEREOF, the parties have caused their respective duly
authorized officers to execute this Agreement as of the date first above
written.

SUNAMERICA ASSET MANAGEMENT CORP.

By: /s/ Peter A. Harbeck
------------------------------------
Name: Peter A. Harbeck
Title: President

PUTNAM INVESTMENT MANAGEMENT, INC.

By: /s/ GORDON H. SILVER
------------------------------------
Name: Gordon H. Silver
Title: Senior Managing Director

- 8 -
<PAGE> 17
SCHEDULE A

<TABLE>
<CAPTION>
FEE
(AS PERCENTAGE OF
AVERAGE DAILY NET ASSETS OF
PORTFOLIO(S) THE PORTFOLIO)
- ------------ ---------------------------
<S> <C> <C>
Putnam Growth .50% on the first $150MM
.45% on the next $150MM
.35% over $300MM

International Growth and Income .65% on the first $150MM
.55% on the next $150MM
.45% over $300MM

Emerging Markets 1.00% on the first $150MM
.95% on the next $150MM
.85% over $300MM
</TABLE>

April 17, 1997

- 9 -

<PAGE> 1

EXHIBIT 9(a)

TRANSFER AGENCY AND SERVICE AGREEMENT

between

SUNAMERICA SERIES TRUST

and

STATE STREET BANK AND TRUST COMPANY

<PAGE> 2
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
----
<S> <C> <C>
Article 1 Terms of Appointment; Duties of the Bank............... 1

Article 2 Fees and Expenses...................................... 4

Article 3 Representations and Warranties of the Bank............. 4

Article 4 Representations and Warranties of the Fund............. 5

Article 5 Data Access and Proprietary Information................ 5

Article 6 Indemnification........................................ 7

Article 7 Standard of Care....................................... 9

Article 8 Covenants of the Fund and the Bank..................... 9

Article 9 Termination of Agreement............................... 10

Article 10 Additional Funds....................................... 10

Article 11 Assignment............................................. 10

Article 12 Amendment.............................................. 11

Article 13 Massachusetts Law to Apply............................. 11

Article 14 Force Majeure.......................................... 11

Article 15 Consequential Damages.................................. 11

Article 16 Merger of Agreement.................................... 11

Article 17 Limitations of Liability of the Trustees
and the Shareholders................................... 11

Article 18 Counterparts........................................... 12
</TABLE>

<PAGE> 3
TRANSFER AGENCY AND SERVICE AGREEMENT

AGREEMENT made as of the 11th day of January, 1993, by and between
SUNAMERICA SERIES TRUST , a business trust, having its principal office and
place of business at (the "Fund"), and STATE STREET BANK AND TRUST COMPANY, a
Massachusetts trust company having its principal office and place of business
at 225 Franklin Street, Boston, Massachusetts 02110 (the "Bank").

WHEREAS, the Fund is authorized to issue shares in separate series,
with each such series representing interests in a separate portfolio of
securities and other assets; and

WHEREAS, the Fund intends to initially offer shares in ten series,
The Cash Management Portfolio, The Fixed Income Portfolio, The Global Bond
Portfolio, The High Yield Bond Portfolio, The Asset Allocation Portfolio, The
Growth Income Portfolio, The Global Equities Portfolio, The Alliance Growth
Portfolio, The Growth/Phoenix Investment Counsel Portfolio and The Provident
Growth Portfolio (each such series, together with all other series subsequently
established by the Fund and made subject to this Agreement in accordance with
Article 8 being herein referred to as a "Portfolio", and collectively as the
"Portfolios");

WHEREAS, the Fund on behalf of the Portfolios desires to appoint the
Bank as its transfer agent, dividend disbursing agent, custodian of certain
retirement plans and agent in connection with certain other activities, and the
Bank desires to accept such appointment;

<PAGE> 4
NOW, THEREFORE, in consideration of the mutual covenants herein
contained, the parties hereto agree as follows:

Article l Terms of Appointment; Duties of the Bank

1.01 Subject to the terms and conditions set forth in this
Agreement, the Fund, on behalf of the Portfolios, hereby employs and appoints
the Bank to act as, and the Bank agrees to act as its transfer agent for the
authorized and issued shares of beneficial interest of the Fund representing
interests in each of the respective Portfolios ("Shares"), dividend disbursing
agent, custodian of certain retirement plans and agent in connection with any
accumulation, open-account or similar plans provided to the shareholders of
each of the respective Portfolios of the Fund ("Shareholders") and set out in
the currently effective prospectus and statement of additional information
("prospectus") of the Fund on behalf of the applicable Portfolio, including
without limitation any periodic investment plan or periodic withdrawal program.

1.02 The Bank agrees that it will perform the following
services:

(a) In accordance with procedures established from time to
time by agreement between the Fund on behalf of each of the Portfolios, as
applicable and the Bank, the Bank shall:

(i) Receive for acceptance, orders for the purchase of
Shares, and promptly deliver payment and appropriate documentation thereof to
the Custodian of the Fund authorized pursuant to the Declaration of Trust of
the Fund (the "Custodian");

-2-
<PAGE> 5

(ii) Pursuant to purchase orders, issue the appropriate
number of Shares and hold such Shares in the appropriate Shareholder account;

(iii) Receive for acceptance redemption requests and
redemption directions and deliver the appropriate documentation thereof to the
Custodian;

(iv) In respect to the transactions in items (i), (ii) and
(iii) above, the Bank shall execute transactions directly with broker-dealers
authorized by the Fund who shall thereby be deemed to be acting on behalf of
the Fund;

(v) At the appropriate time as and when it receives
monies paid to it by the Custodian with respect to any redemption, pay over or
cause to be paid over in the appropriate manner such monies as instructed by
the redeeming Shareholders;

(vi) Effect transfers of Shares by the registered owners
thereof upon receipt of appropriate instructions;

(vii) Prepare and transmit payments for dividends and
distributions declared by the Fund on behalf of the applicable Portfolio;

(viii) Issue replacement certificates for those certificates
alleged to have been lost, stolen or destroyed upon receipt by the Bank of
indemnification satisfactory to the Bank and protecting the Bank and the Fund,
and the Bank at

-3-
<PAGE> 6

its option, may issue replacement certificates in place of mutilated stock
certificates upon presentation thereof and without such indemnity;

(ix) Maintain records of account for and advise the Fund
and its Shareholders as to the foregoing; and

(x) Record the issuance of Shares of the Fund and
maintain pursuant to SEC Rule 17Ad-10(e) a record of the total number of Shares
which are authorized, based upon data provided to it by the Fund, and issued
and outstanding. The Bank shall also provide the Fund on a regular basis with
the total number of Shares which are authorized and issued and outstanding and
shall have no obligation, when recording the issuance of Shares, to monitor the
issuance of such Shares or to take cognizance of any laws relating to the issue
or sale of such Shares, which functions shall be the sole responsibility of the
Fund.

(b) In addition to and neither in lieu nor in contravention
of the services set forth in the above paragraph (a), the Bank shall: (i)
perform the customary services of a transfer agent, dividend disbursing agent,
custodian of certain retirement plans and, as relevant, agent in connection
with accumulation, open-account or similar plans (including without limitation
any periodic investment plan or periodic withdrawal program), including but not
limited to: maintaining all Shareholder accounts, preparing Shareholder
meeting lists,

-4-

<PAGE> 7

mailing proxies, mailing Shareholder reports and prospectuses to current
Shareholders, withholding taxes on U.S. resident and non-resident alien
accounts, preparing and filing U.S. Treasury Department Forms 1099 and other
appropriate forms required with respect to dividends and distributions by
federal authorities for all Shareholders, preparing and mailing confirmation
forms and statements of account to Shareholders for all purchases and
redemptions of Shares and other confirmable transactions in Shareholder
accounts, preparing and mailing activity statements for Shareholders, and
providing Shareholder account information and (ii) provide a system which will
enable the Fund to monitor the total number of Shares sold in each State.

(c) In addition, the Fund shall (i) identify to the Bank
in writing those transactions and assets to be treated as exempt from blue sky
reporting for each State and (ii) verify the establishment of transactions for
each State on the system prior to activation and thereafter monitor the daily
activity for each State. The responsibility of the Bank for the Fund's blue
sky State registration status is solely limited to the initial establishment of
transactions subject to blue sky compliance by the Fund and the reporting of
such transactions to the Fund as provided above.

(d) Procedures as to who shall provide certain of these
services in Article 1 may be established from time to time by agreement between
the Fund on behalf of each Portfolio and the Bank per the attached service
responsibility schedule. The Bank may at times perform only a portion of these
services and the Fund or its agent may perform these services on the Fund's
behalf.

-5-
<PAGE> 8

(e) The Bank shall provide additional services on behalf
of the Fund (i.e., escheatment services) which may be agreed upon in writing
between the Fund and the Bank.

Article 2 Fees and Expenses

2.01 For performance by the Bank pursuant to this
Agreement, the Fund agrees on behalf of each of the Portfolios to pay the Bank
an annual maintenance fee for each Shareholder account as set out in the
initial fee schedule attached hereto. Such fees and out-of- pocket expenses
and advances identified under Section 2.02 below may be changed from time to
time subject to mutual written agreement between the Fund and the Bank.

2.02 In addition to the fee paid under Section 2.01 above,
the Fund agrees on behalf of each of the Portfolios to reimburse the Bank for
out-of-pocket expenses, including but not limited to confirmation production,
postage, forms, telephone, microfilm, microfiche, tabulating proxies, records
storage or advances incurred by the Bank for the items set out in the fee
schedule attached hereto. In addition, any other expenses incurred by the Bank
at the request or with the consent of the Fund, will be reimbursed by the Fund
on behalf of the applicable Portfolio.

2.03 The Fund agrees on behalf of each of the Portfolios to
pay all fees and reimbursable expenses within five days following the mailing
of the respective billing notice. Postage for mailing of dividends, proxies,
Fund reports and other mailings to all Shareholder accounts shall be advanced
to the Bank by the Fund at least seven (7) days prior to the mailing date of
such materials.

-6-

<PAGE> 9

Article 3 Representations and Warranties of the Bank

The Bank represents and warrants to the Fund that:

3.01 It is a trust company duly organized and existing and
in good standing under the laws of the Commonwealth of Massachusetts.

3.02 It is duly qualified to carry on its business in the
Commonwealth of Massachusetts.

3.03 It is empowered under applicable laws and by its
Charter and By-Laws to enter into and perform this Agreement.

3.04 All requisite corporate proceedings have been taken to
authorize it to enter into and perform this Agreement.

3.05 It has and will continue to have access to the
necessary facilities, equipment and personnel to perform its duties and
obligations under this Agreement.

Article 4 Representations and Warranties of the Fund

The Fund represents and warrants to the Bank that:

4.01 It is a business trust duly organized and existing and
in good standing under the laws of the Commonwealth of Massachusetts.

4.02 It is empowered under applicable laws and by its
Declaration of Trust and By-Laws to enter into and perform this Agreement.

4.03 All corporate proceedings required by said Declaration
of Trust and By-Laws have been taken to authorize it to enter into and perform
this Agreement.

4.04 It is an open-end and diversified management
investment company registered under the Investment Company Act of 1940, as
amended.

-7-
<PAGE> 10

4.05 A registration statement under the Securities Act of
1933, as amended on behalf of each of the Portfolios is currently effective and
will remain effective, and appropriate state securities law filings have been
made and will continue to be made, with respect to all Shares of the Fund being
offered for sale.

Article 5 Data Access and Proprietary Information

5.01 The Fund acknowledges that the data bases, computer
programs, screen format, report formats, interactive design techniques, and
documentation manuals furnished to the Fund by the Bank as part of the Fund's
ability to access certain Fund-related data ("Customer Data") maintained by the
Bank on data bases under the control and ownership of the Bank or other third
party ("Data Access Services") constitute copyrighted, trade secret, or other
proprietary information (collectively, "Proprietary Information") of
substantial value to the Bank or other third party. In no event shall
Proprietary Information be deemed Customer Data. The Fund agrees to treat all
Proprietary Information as proprietary to the Bank and further agrees that it
shall not divulge any Proprietary Information to any person or organization
except as may be provided hereunder. Without limiting the foregoing, the Fund
agrees for itself and its employees and agents:

(a) to access Customer Data solely from locations as may
be designated in writing by the Bank and solely in accordance with the Bank's
applicable user documentation;

-8-

<PAGE> 11

(b) to refrain from copying or duplicating in any way the
Proprietary Information;

(c) to refrain from obtaining unauthorized access to any
portion of the Proprietary Information, and if such access is inadvertently
obtained, to inform in a timely manner of such fact and dispose of such
information in accordance with the Bank's instructions;

(d) to refrain from causing or allowing third-party data
required hereunder from being retransmitted to any other computer facility or
other location, except with the prior written consent of the Bank;

(e) that the Fund shall have access only to those
authorized transactions agreed upon by the parties;

(f) to honor all reasonable written requests made by the
Bank to protect at the Bank's expense the rights of the Bank in Proprietary
Information at common law, under federal copyright law and under other federal
or state law.

Each party shall take reasonable efforts to advise its employees of
their obligations pursuant to this Article 5. The obligations of this Article
shall survive any earlier termination of this Agreement.

5.02 If the Fund notifies the Bank that any of the Data
Access Services do not operate in material compliance with the most recently
issued user documentation for such services,

-9-
<PAGE> 12

the Bank shall endeavor in a timely manner to correct such failure.
Organizations from which the Bank may obtain certain data included in the Data
Access Services are solely responsible for the contents of such data and the
Fund agrees to make no claim against the Bank arising out of the contents of
such third-party data, including, but not limited to, the accuracy thereof.
DATA ACCESS SERVICES AND ALL COMPUTER PROGRAMS AND SOFTWARE SPECIFICATIONS USED
IN CONNECTION THEREWITH ARE PROVIDED ON AN AS IS, AS AVAILABLE BASIS. THE BANK
EXPRESSLY DISCLAIMS ALL WARRANTIES EXCEPT THOSE EXPRESSLY STATED HEREIN
INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE.

5.03 If the transactions available to the Fund include the
ability to originate electronic instructions to the Bank in order to (i) effect
the transfer or movement of cash of Shares or (ii) transmit Shareholder
information or other information (such transactions constituting a "COEFI"),
then in such event the Bank shall be entitled to rely on the validity and
authenticity of such instruction without undertaking any further inquiry as
long as such instruction is undertaken in conformity with security procedures
established by the Bank from time to time.

Article 6 Indemnification

6.01 The Bank shall not be responsible for, and the Fund
shall on behalf of the applicable Portfolio indemnify and hold the Bank
harmless from and against, any and all losses, damages, costs, charges, counsel
fees, payments, expenses and liability arising out of or attributable to:

-10-

<PAGE> 13

(a) All actions of the Bank or its agent or subcontractors
required to be taken pursuant to this Agreement, provided that such actions are
taken in good faith and without negligence or willful misconduct.

(b) The Fund's lack of good faith, negligence or willful
misconduct which arise out of the breach of any representation or warranty of
the Fund hereunder.

(c) The reliance on or use by the Bank or its agents or
subcontractors of information, records, documents or services which (i) are
received by the Bank or its agents or subcontractors, and (ii) have been
prepared, maintained or performed by the Fund or any other person or firm on
behalf of the Fund including but not limited to any previous transfer agent or
registrar.

(d) The reliance on, or the carrying out by the Bank or its
agents or subcontractors of any instructions or requests of the Fund on behalf
of the applicable Portfolio.

(e) The offer or sale of Shares in violation of any
requirement under the federal securities laws or regulations or the securities
laws or regulations of any state that such Shares be registered in such state
or in violation of any stop order or other determination or ruling by any
federal agency or any state with respect to the offer or sale of such Shares in
such state.

6.02 At any time the Bank may apply to any officer of the
Fund for instructions, and may consult with legal counsel with respect to any
matter arising in connection with the services to be performed by the Bank
under this Agreement, and

-11-
<PAGE> 14

the Bank and its agents or subcontractors shall not be liable and shall be
indemnified by the Fund on behalf of the applicable Portfolio for any action
taken or omitted by it in reliance upon such instructions or upon the opinion
of such counsel. The Bank, its agents and subcontractors shall be protected
and indemnified in acting upon any paper or document furnished by or on behalf
of the Fund, reasonably believed to be genuine and to have been signed by the
proper person or persons, or upon any instruction, information, data, records
or documents provided the Bank or its agents or subcontractors by machine
readable input, telex, CRT data entry or other similar means authorized by the
Fund, and shall not be held to have notice of any change of authority of any
person, until receipt of written notice thereof from the Fund. The Bank, its
agents and subcontractors shall also be protected and indemnified in
recognizing stock certificates which are reasonably believed to bear the proper
manual or facsimile signatures of the officers of the Fund, and the proper
countersignature of any former transfer agent or former registrar, or of a
co-transfer agent or co-registrar.

6.03 In order that the indemnification provisions contained
in this Article 6 shall apply, upon the assertion of a claim for which the Fund
may be required to indemnify the Bank, the Bank shall promptly notify the Fund
of such assertion, and shall keep the Fund advised with respect to all
developments concerning such claim. The Fund shall have the option to
participate with the Bank in the defense of such claim or to defend against
said claim in its own name or in the name of the

-12-

<PAGE> 15

Bank. The Bank shall in no case confess any claim or make any compromise in
any case in which the Fund may be required to indemnify the Bank except with
the Fund's prior written consent.

Article 7 Standard of Care

7.01 The Bank shall at all times act in good faith and
agrees to use its best efforts within reasonable limits to insure the accuracy
of all services performed under this Agreement, but assumes no responsibility
and shall not be liable for loss or damage due to errors unless said errors are
caused by its negligence, bad faith, or willful misconduct of that of its
employees.

Article 8 Covenants of the Fund and the Bank

8.01 The Fund shall on behalf of each of the Portfolios
promptly furnish to the Bank the following:

(a) A certified copy of the resolution of the Trustees of
the Fund authorizing the appointment of the Bank and the execution and delivery
of this Agreement.

(b) A copy of the Declaration of Trust and By-Laws of the
Fund and all amendments thereto.

8.02 The Bank hereby agrees to establish and maintain
facilities and procedures reasonably acceptable to the Fund for safekeeping of
stock certificates, check forms and facsimile signature imprinting devices, if
any; and for the preparation or use, and for keeping account of, such
certificates, forms and devices.

8.03 The Bank shall keep records relating to the services
to be performed hereunder, in the form and manner as it

-13-
<PAGE> 16

may deem advisable. To the extent required by Section 31 of the Investment
Company Act of 1940, as amended, and the Rules thereunder, the Bank agrees that
all such records prepared or maintained by the Bank relating to the services to
be performed by the Bank hereunder are the property of the Fund and will be
preserved, maintained and made available in accordance with such Section and
Rules, and will be surrendered promptly to the Fund on and in accordance with
its request.

8.04 The Bank and the Fund agree that all books, records,
information and data pertaining to the business of the other party which are
exchanged or received pursuant to the negotiation or the carrying out of this
Agreement shall remain confidential, and shall not be voluntarily disclosed to
any other person, except as may be required by law.

8.05 In case of any requests or demands for the inspection
of the Shareholder records of the Fund, the Bank will endeavor to notify the
Fund and to secure instructions from an authorized officer of the Fund as to
such inspection. The Bank reserves the right, however, to exhibit the
Shareholder records to any person whenever it is advised by its counsel that it
may be held liable for the failure to exhibit the Shareholder records to such
person.

Article 9 Termination of Agreement

9.01 This Agreement may be terminated by either party upon
one hundred twenty (120) days written notice to the other.

9.02 Should the Fund exercise its right to terminate, all
out-of-pocket expenses associated with the movement of

-14-

<PAGE> 17

records and material will be borne by the Fund on behalf of the applicable
Portfolio(s). Additionally, the Bank reserves the right to charge for any
other reasonable expenses associated with such termination and/or a charge
equivalent to the average of three (3) months' fees.

Article 10 Additional Funds

10.01 In the event that the Fund establishes one or more
series of Shares in addition to The Cash Management Portfolio, The Fixed Income
Portfolio, The Global Bond Portfolio, The High Yield Bond Portfolio, The Asset
Allocation Portfolio, The Growth Income Portfolio, The Global Equities
Portfolio, The Alliance Growth Portfolio, The Growth/Phoenix Investment Counsel
Portfolio and The Provident Growth Portfolio with respect to which it desires
to have the Bank render services as transfer agent under the terms hereof, it
shall so notify the Bank in writing, and if the Bank agrees in writing to
provide such services, such series of Shares shall become a Portfolio
hereunder.

Article 11 Assignment

11.01 Except as provided in Section 11.03 below, neither
this Agreement nor any rights or obligations hereunder may be assigned by
either party without the written consent of the other party.

11.02 This Agreement shall inure to the benefit of and be
binding upon the parties and their respective permitted successors and assigns.

11.03 The Bank may, without further consent on the part of
the Fund, subcontract for the performance hereof with (i)

-15-
<PAGE> 18

Boston Financial Data Services, Inc., a Massachusetts corporation ("BFDS")
which is duly registered as a transfer agent pursuant to Section 17A(c)(1) of
the Securities Exchange Act of 1934, as amended ("Section 17A(c)(1)"), (ii) a
BFDS subsidiary duly registered as a transfer agent pursuant to Section
17A(c)(1) or (iii) a BFDS affiliate; provided, however, that the Bank shall be
as fully responsible to the Fund for the acts and omissions of any
subcontractor as it is for its own acts and omissions.

Article 12 Amendment

12.01 This Agreement may be amended or modified by a
written agreement executed by both parties and authorized or approved by a
resolution of the Trustees of the Fund.

Article 13 Massachusetts Law to Apply

13.01 This Agreement shall be construed and the provisions
thereof interpreted under and in accordance with the laws of the Commonwealth
of Massachusetts.

Article 14 Force Majeure

14.01 In the event either party is unable to perform its
obligations under the terms of this Agreement because of acts of God, strikes,
equipment or transmission failure or damage reasonably beyond its control, or
other causes reasonably beyond its control, such party shall not be liable for
damages to the other for any damages resulting from such failure to perform or
otherwise from such causes.

Article 15 Consequential Damages

15.01 Neither party to this Agreement shall be liable to
the other party for consequential damages under any provision

-16-

<PAGE> 19

of this Agreement or for any consequential damages arising out of any act or
failure to act hereunder.

Article 16 Merger of Agreement

16.01 This Agreement constitutes the entire agreement
between the parties hereto and supersedes any prior agreement with respect to
the subject matter hereof whether oral or written.

Article 17 Limitations of Liability of the Trustees and

Shareholders

17.01 A copy of the Declaration of Trust of the Trust is on
file with the Secretary of the Commonwealth of Massachusetts, and notice is
hereby given that this instrument is executed on behalf of the Trustees of the
Trust as Trustees and not individually and that the obligations of this
instrument are not binding upon any of the Trustees or Shareholders
individually but are binding only upon the assets and property of the Fund.

Article 18 Counterparts

18.01 This Agreement may be executed by the parties hereto
on any number of counterparts, and all of said counterparts taken together
shall be deemed to constitute one and the same instrument.

-17-
<PAGE> 20
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed in their names and on their behalf by and through their duly
authorized officers, as of the day and year first above written.

SUNAMERICA SERIES TRUST

BY: [SIG]
----------------------------------

ATTEST:

[SIG]
- -------------------------------

STATE STREET BANK AND TRUST COMPANY

BY: [SIG]
----------------------------------
Executive Vice President

ATTEST:

[SIG]
- -------------------------------
Assistant Secretary

-18-

<PAGE> 1
CONSENT OF INDEPENDENT ACCOUNTANTS

We hereby consent to the use in the Statement of Additional Information
constituting part of this Post-Effective Amendment No. 12 to the registration
statement on Form N-1A (the "Registration Statement") of our report dated
January 10, 1997, relating to the financial statements and financial highlights
of SunAmerica Series Trust, which appears in such Statement of Additional
Information. We also consent to the references to us under the heading "General
Information -- Independent Accountants" in such Statement of Additional
Information and to the references to us under the headings "Financial
Highlights" and "Independent Accountants" in such Prospectus.

/s/ Price Waterhouse
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York
February 21, 1997

<ARTICLE> 6
<CIK> 0000892538
<NAME> SUNAMERICA SERIES TRUST
<SERIES>
<NUMBER> 01
<NAME> SUNAMERICA SERIES TRUST GLOBAL EQUITIES

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 219,596,710
<INVESTMENTS-AT-VALUE> 249,986,707
<RECEIVABLES> 1,283,559
<ASSETS-OTHER> 11,461
<OTHER-ITEMS-ASSETS> 184,293
<TOTAL-ASSETS> 251,466,020
<PAYABLE-FOR-SECURITIES> 4,617,059
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 366,955
<TOTAL-LIABILITIES> 4,984,014
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 201,906,166
<SHARES-COMMON-STOCK> 16,515,390
<SHARES-COMMON-PRIOR> 12,693,039
<ACCUMULATED-NII-CURRENT> 2,209,001
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 11,975,206
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 30,391,633
<NET-ASSETS> 246,482,006
<DIVIDEND-INCOME> 3,650,127
<INTEREST-INCOME> 575,056
<OTHER-INCOME> 0
<EXPENSES-NET> (2,096,422)
<NET-INVESTMENT-INCOME> 2,128,761
<REALIZED-GAINS-CURRENT> 12,796,915
<APPREC-INCREASE-CURRENT> 19,314,155
<NET-CHANGE-FROM-OPS> 34,239,831
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,885,000)
<DISTRIBUTIONS-OF-GAINS> (4,480,000)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7,165,202
<NUMBER-OF-SHARES-REDEEMED> (3,815,033)
<SHARES-REINVESTED> 472,181
<NET-CHANGE-IN-ASSETS> 80,730,309
<ACCUMULATED-NII-PRIOR> 1,468,646
<ACCUMULATED-GAINS-PRIOR> 4,154,885
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,627,510
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,096,422
<AVERAGE-NET-ASSETS> 203,930,028
<PER-SHARE-NAV-BEGIN> 13.06
<PER-SHARE-NII> 0.14
<PER-SHARE-GAIN-APPREC> 2.19
<PER-SHARE-DIVIDEND> (0.14)
<PER-SHARE-DISTRIBUTIONS> (0.33)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.92
<EXPENSE-RATIO> 1.03
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0

</TABLE>

<ARTICLE> 6
<CIK> 0000892538
<NAME> SUNAMERICA SERIES TRUST
<SERIES>
<NUMBER> 002
<NAME> SUNAMERICA SERIES TRUST ALLIANCE GROWTH

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 313,547,697
<INVESTMENTS-AT-VALUE> 380,374,514
<RECEIVABLES> 4,132,931
<ASSETS-OTHER> 12,937
<OTHER-ITEMS-ASSETS> 893
<TOTAL-ASSETS> 384,521,275
<PAYABLE-FOR-SECURITIES> 2,728,676
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 425,926
<TOTAL-LIABILITIES> 3,154,602
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 290,961,176
<SHARES-COMMON-STOCK> 20,365,649
<SHARES-COMMON-PRIOR> 10,739,380
<ACCUMULATED-NII-CURRENT> 1,193,834
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 21,987,346
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 67,224,317
<NET-ASSETS> 381,366,673
<DIVIDEND-INCOME> 2,624,079
<INTEREST-INCOME> 273,003
<OTHER-INCOME> 0
<EXPENSES-NET> (1,697,644)
<NET-INVESTMENT-INCOME> 1,199,438
<REALIZED-GAINS-CURRENT> 22,227,082
<APPREC-INCREASE-CURRENT> 46,786,487
<NET-CHANGE-FROM-OPS> 70,213,007
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (483,000)
<DISTRIBUTIONS-OF-GAINS> (13,185,000)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 15,394,232
<NUMBER-OF-SHARES-REDEEMED> (6,661,296)
<SHARES-REINVESTED> 893,333
<NET-CHANGE-IN-ASSETS> 381,366,673
<ACCUMULATED-NII-PRIOR> 477,396
<ACCUMULATED-GAINS-PRIOR> 12,945,264
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,522,222
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,697,644
<AVERAGE-NET-ASSETS> 237,452,095
<PER-SHARE-NAV-BEGIN> 15.63
<PER-SHARE-NII> 0.08
<PER-SHARE-GAIN-APPREC> 4.07
<PER-SHARE-DIVIDEND> (0.04)
<PER-SHARE-DISTRIBUTIONS> (1.01)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 18.73
<EXPENSE-RATIO> 0.71
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0

</TABLE>

<ARTICLE> 6
<CIK> 0000892538
<NAME> SUNAMERICA SERIES TRUST
<SERIES>
<NUMBER> 03
<NAME> SUNAMERICA SERIES TRUST GROWTH PHOENIX

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 158,981,950
<INVESTMENTS-AT-VALUE> 186,310,923
<RECEIVABLES> 294,665
<ASSETS-OTHER> 10,368
<OTHER-ITEMS-ASSETS> 1,900
<TOTAL-ASSETS> 186,617,856
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 250,278
<TOTAL-LIABILITIES> 250,278
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 141,611,796
<SHARES-COMMON-STOCK> 12,955,501
<SHARES-COMMON-PRIOR> 11,411,801
<ACCUMULATED-NII-CURRENT> 1,322,795
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 16,104,014
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 27,328,973
<NET-ASSETS> 186,367,578
<DIVIDEND-INCOME> 1,524,769
<INTEREST-INCOME> 1,005,335
<OTHER-INCOME> 0
<EXPENSES-NET> (1,202,838)
<NET-INVESTMENT-INCOME> 1,327,266
<REALIZED-GAINS-CURRENT> 16,211,284
<APPREC-INCREASE-CURRENT> 10,855,495
<NET-CHANGE-FROM-OPS> 27,066,779
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,265,000)
<DISTRIBUTIONS-OF-GAINS> (10,645,000)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,516,917
<NUMBER-OF-SHARES-REDEEMED> (2,922,221)
<SHARES-REINVESTED> 949,004
<NET-CHANGE-IN-ASSETS> 36,457,095
<ACCUMULATED-NII-PRIOR> 1,261,039
<ACCUMULATED-GAINS-PRIOR> 10,537,220
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,072,976
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,202,838
<AVERAGE-NET-ASSETS> 162,203,619
<PER-SHARE-NAV-BEGIN> 13.14
<PER-SHARE-NII> 0.11
<PER-SHARE-GAIN-APPREC> 2.16
<PER-SHARE-DIVIDEND> (0.11)
<PER-SHARE-DISTRIBUTIONS> (0.91)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.39
<EXPENSE-RATIO> 0.74
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0

</TABLE>

<ARTICLE> 6
<CIK> 0000892538
<NAME> SUNAMERICA SERIES TRUST
<SERIES>
<NUMBER> 004
<NAME> SUNAMERICA SERIES TRUST PROVIDENT GROWTH

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 116,201,171
<INVESTMENTS-AT-VALUE> 161,536,664
<RECEIVABLES> 691,261
<ASSETS-OTHER> 8,873
<OTHER-ITEMS-ASSETS> 79
<TOTAL-ASSETS> 162,236,877
<PAYABLE-FOR-SECURITIES> 1,964,853
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 198,979
<TOTAL-LIABILITIES> 2,163,832
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 109,285,958
<SHARES-COMMON-STOCK> 10,189,121
<SHARES-COMMON-PRIOR> 8,800,227
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 5,451,594
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 45,335,493
<NET-ASSETS> 160,073,045
<DIVIDEND-INCOME> 723,018
<INTEREST-INCOME> 432,804
<OTHER-INCOME> 0
<EXPENSES-NET> (1,179,277)
<NET-INVESTMENT-INCOME> (23,455)
<REALIZED-GAINS-CURRENT> 8,612,831
<APPREC-INCREASE-CURRENT> 17,288,052
<NET-CHANGE-FROM-OPS> 25,877,428
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,113,284
<NUMBER-OF-SHARES-REDEEMED> (2,724,390)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 44,797,006
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (3,161,237)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,073,769
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,179,277
<AVERAGE-NET-ASSETS> 131,167
<PER-SHARE-NAV-BEGIN> 13.10
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 2.61
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.71
<EXPENSE-RATIO> 0.09
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0

</TABLE>

<ARTICLE> 6
<CIK> 0000892538
<NAME> SUNAMERICA SERIES TRUST
<SERIES>
<NUMBER> 005
<NAME> SUNAMERICA SERIES TRUST GROWTH & INCOME

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 257,659,579
<INVESTMENTS-AT-VALUE> 324,731,680
<RECEIVABLES> 1,016,806
<ASSETS-OTHER> 12,555
<OTHER-ITEMS-ASSETS> 3,993,576
<TOTAL-ASSETS> 329,754,617
<PAYABLE-FOR-SECURITIES> 3,992,876
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 298,416
<TOTAL-LIABILITIES> 4,291,292
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 239,798,335
<SHARES-COMMON-STOCK> 19,355,026
<SHARES-COMMON-PRIOR> 12,490,023
<ACCUMULATED-NII-CURRENT> 2,766,743
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 14,863,765
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 68,034,482
<NET-ASSETS> 325,463,325
<DIVIDEND-INCOME> 3,790,860
<INTEREST-INCOME> 624,063
<OTHER-INCOME> 0
<EXPENSES-NET> (1,641,602)
<NET-INVESTMENT-INCOME> 2,773,321
<REALIZED-GAINS-CURRENT> 14,942,621
<APPREC-INCREASE-CURRENT> 43,656,313
<NET-CHANGE-FROM-OPS> 61,372,255
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,680,000)
<DISTRIBUTIONS-OF-GAINS> (5,975,000)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 9,953,598
<NUMBER-OF-SHARES-REDEEMED> (3,630,349)
<SHARES-REINVESTED> 541,755
<NET-CHANGE-IN-ASSETS> 154,182,252
<ACCUMULATED-NII-PRIOR> 1,673,393
<ACCUMULATED-GAINS-PRIOR> 5,896,173
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,476,902
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,641,602
<AVERAGE-NET-ASSETS> 229,559,175
<PER-SHARE-NAV-BEGIN> 13.71
<PER-SHARE-NII> 0.18
<PER-SHARE-GAIN-APPREC> 3.48
<PER-SHARE-DIVIDEND> (0.12)
<PER-SHARE-DISTRIBUTIONS> (0.43)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.82
<EXPENSE-RATIO> 0.72
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0

</TABLE>

<ARTICLE> 6
<CIK> 0000892538
<NAME> SUNAMERICA SERIES TRUST
<SERIES>
<NUMBER> 006
<NAME> SUNAMERICA SERIES TRUST HIGH YIELD BOND

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 109,030,658
<INVESTMENTS-AT-VALUE> 113,923,939
<RECEIVABLES> 1,520,543
<ASSETS-OTHER> 7,899
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 115,452,381
<PAYABLE-FOR-SECURITIES> 2,000,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 223,288
<TOTAL-LIABILITIES> 2,223,288
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 107,922,671
<SHARES-COMMON-STOCK> 10,252,646
<SHARES-COMMON-PRIOR> 7,806,335
<ACCUMULATED-NII-CURRENT> 8,882,962
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (8,469,821)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,893,281
<NET-ASSETS> 113,229,093
<DIVIDEND-INCOME> 46,590
<INTEREST-INCOME> 9,574,555
<OTHER-INCOME> 0
<EXPENSES-NET> (729,123)
<NET-INVESTMENT-INCOME> 8,892,022
<REALIZED-GAINS-CURRENT> 567,983
<APPREC-INCREASE-CURRENT> 4,227,884
<NET-CHANGE-FROM-OPS> 13,687,889
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (7,420,000)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8,529,658
<NUMBER-OF-SHARES-REDEEMED> (6,827,580)
<SHARES-REINVESTED> 744,233
<NET-CHANGE-IN-ASSETS> 31,055,426
<ACCUMULATED-NII-PRIOR> 7,410,940
<ACCUMULATED-GAINS-PRIOR> (9,037,804)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 638,948
<INTEREST-EXPENSE> 7,414
<GROSS-EXPENSE> 729,123
<AVERAGE-NET-ASSETS> 94,453,482
<PER-SHARE-NAV-BEGIN> 10.53
<PER-SHARE-NII> 0.98
<PER-SHARE-GAIN-APPREC> 0.48
<PER-SHARE-DIVIDEND> (0.95)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.04
<EXPENSE-RATIO> 0.77
<AVG-DEBT-OUTSTANDING> 102,242
<AVG-DEBT-PER-SHARE> 0.01

</TABLE>

<ARTICLE> 6
<CIK> 0000892538
<NAME> SUNAMERICA SERIES TRUST
<SERIES>
<NUMBER> 007
<NAME> SUNAMERICA SERIES TRUST CASH MANAGEMENT

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 91,021,216
<INVESTMENTS-AT-VALUE> 91,014,799
<RECEIVABLES> 889,646
<ASSETS-OTHER> 14,039
<OTHER-ITEMS-ASSETS> 626
<TOTAL-ASSETS> 91,919,110
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 672,314
<TOTAL-LIABILITIES> 672,314
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 84,932,639
<SHARES-COMMON-STOCK> 8,479,746
<SHARES-COMMON-PRIOR> 8,483,049
<ACCUMULATED-NII-CURRENT> 6,322,183
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,609)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (6,417)
<NET-ASSETS> 91,246,796
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 7,122,754
<OTHER-INCOME> 0
<EXPENSES-NET> (795,351)
<NET-INVESTMENT-INCOME> 6,327,403
<REALIZED-GAINS-CURRENT> (1,609)
<APPREC-INCREASE-CURRENT> (9,491)
<NET-CHANGE-FROM-OPS> 6,316,303
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (4,240,000)
<DISTRIBUTIONS-OF-GAINS> (4,750)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 57,928,895
<NUMBER-OF-SHARES-REDEEMED> (58,340,347)
<SHARES-REINVESTED> 408,149
<NET-CHANGE-IN-ASSETS> 515,603
<ACCUMULATED-NII-PRIOR> 4,234,947
<ACCUMULATED-GAINS-PRIOR> 4,583
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 694,655
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 795,351
<AVERAGE-NET-ASSETS> 129,238,036
<PER-SHARE-NAV-BEGIN> 10.70
<PER-SHARE-NII> 0.53
<PER-SHARE-GAIN-APPREC> (0.02)
<PER-SHARE-DIVIDEND> (0.45)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.76
<EXPENSE-RATIO> 0.62
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0

</TABLE>

<ARTICLE> 6
<CIK> 0000892538
<NAME> SUNAMERICA SERIES TRUST
<SERIES>
<NUMBER> 008
<NAME> SUNAMERICA SERIES TRUST ASSET ALLOCATION

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 301,144,739
<INVESTMENTS-AT-VALUE> 337,148,883
<RECEIVABLES> 22,083,259
<ASSETS-OTHER> 13,280
<OTHER-ITEMS-ASSETS> 604
<TOTAL-ASSETS> 359,246,026
<PAYABLE-FOR-SECURITIES> 42,456,796
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 400,804
<TOTAL-LIABILITIES> 42,857,600
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 251,012,742
<SHARES-COMMON-STOCK> 21,790,902
<SHARES-COMMON-PRIOR> 15,689,067
<ACCUMULATED-NII-CURRENT> 8,660,644
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 19,449,365
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 37,265,675
<NET-ASSETS> 316,388,426
<DIVIDEND-INCOME> 3,835,134
<INTEREST-INCOME> 7,138,642
<OTHER-INCOME> 0
<EXPENSES-NET> (1,836,815)
<NET-INVESTMENT-INCOME> 9,136,961
<REALIZED-GAINS-CURRENT> 20,121,879
<APPREC-INCREASE-CURRENT> 19,848,020
<NET-CHANGE-FROM-OPS> 49,106,860
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (5,505,000)
<DISTRIBUTIONS-OF-GAINS> (6,805,000)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8,296,399
<NUMBER-OF-SHARES-REDEEMED> (3,164,619)
<SHARES-REINVESTED> 970,055
<NET-CHANGE-IN-ASSETS> 116,552,036
<ACCUMULATED-NII-PRIOR> 5,029,483
<ACCUMULATED-GAINS-PRIOR> 6,131,686
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,616,647
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,836,815
<AVERAGE-NET-ASSETS> 249,589,588
<PER-SHARE-NAV-BEGIN> 12.74
<PER-SHARE-NII> 0.48
<PER-SHARE-GAIN-APPREC> 2.00
<PER-SHARE-DIVIDEND> (0.31)
<PER-SHARE-DISTRIBUTIONS> (0.39)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.52
<EXPENSE-RATIO> 0.74
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0

</TABLE>

<ARTICLE> 6
<CIK> 0000892538
<NAME> SUNAMERICA SERIES TRUST
<SERIES>
<NUMBER> 009
<NAME> SUNAMERICA SERIES TRUST GLOBAL BOND

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 66,078,371
<INVESTMENTS-AT-VALUE> 68,119,056
<RECEIVABLES> 9,154,268
<ASSETS-OTHER> 762,133
<OTHER-ITEMS-ASSETS> 665
<TOTAL-ASSETS> 78,036,122
<PAYABLE-FOR-SECURITIES> 3,752,561
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,062,144
<TOTAL-LIABILITIES> 9,814,705
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 61,387,868
<SHARES-COMMON-STOCK> 5,984,546
<SHARES-COMMON-PRIOR> 5,424,420
<ACCUMULATED-NII-CURRENT> 4,377,089
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 91,471
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,364,989
<NET-ASSETS> 68,221,417
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,981,095
<OTHER-INCOME> 0
<EXPENSES-NET> (560,410)
<NET-INVESTMENT-INCOME> 3,420,985
<REALIZED-GAINS-CURRENT> 2,449,344
<APPREC-INCREASE-CURRENT> 871,281
<NET-CHANGE-FROM-OPS> 6,741,310
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (4,060,000)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,437,840
<NUMBER-OF-SHARES-REDEEMED> 2,268,851
<SHARES-REINVESTED> 391,137
<NET-CHANGE-IN-ASSETS> 8,462,373
<ACCUMULATED-NII-PRIOR> 3,620,109
<ACCUMULATED-GAINS-PRIOR> (932,642)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 458,390
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 560,410
<AVERAGE-NET-ASSETS> 62,829,249
<PER-SHARE-NAV-BEGIN> 11.02
<PER-SHARE-NII> 0.59
<PER-SHARE-GAIN-APPREC> 0.54
<PER-SHARE-DIVIDEND> (0.75)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.4
<EXPENSE-RATIO> 0.89
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0

</TABLE>

<ARTICLE> 6
<CIK> 0000892538
<NAME> SUNAMERICA SERIES TRUST
<SERIES>
<NUMBER> 010
<NAME> SUNAMERICA SERIES TRUST CORPORATE BOND

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 35,678,831
<INVESTMENTS-AT-VALUE> 36,837,950
<RECEIVABLES> 1,465,501
<ASSETS-OTHER> 5,720
<OTHER-ITEMS-ASSETS> 182
<TOTAL-ASSETS> 38,309,353
<PAYABLE-FOR-SECURITIES> 1,042,639
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 59,307
<TOTAL-LIABILITIES> 1,101,946
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 34,823,040
<SHARES-COMMON-STOCK> 3,354,369
<SHARES-COMMON-PRIOR> 2,724,189
<ACCUMULATED-NII-CURRENT> 2,004,899
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (779,651)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,159,119
<NET-ASSETS> 37,207,407
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,327,756
<OTHER-INCOME> 0
<EXPENSES-NET> (318,361)
<NET-INVESTMENT-INCOME> 2,009,395
<REALIZED-GAINS-CURRENT> (423,677)
<APPREC-INCREASE-CURRENT> 607,659
<NET-CHANGE-FROM-OPS> 2,193,377
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,225,00)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,891,179
<NUMBER-OF-SHARES-REDEEMED> (1,379,014)
<SHARES-REINVESTED> 118,015
<NET-CHANGE-IN-ASSETS> 7,732,887
<ACCUMULATED-NII-PRIOR> 1,219,884
<ACCUMULATED-GAINS-PRIOR> (355,354)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 230,031
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 318,361
<AVERAGE-NET-ASSETS> 32,861,514
<PER-SHARE-NAV-BEGIN> 10.82
<PER-SHARE-NII> .65
<PER-SHARE-GAIN-APPREC> .03
<PER-SHARE-DIVIDEND> (.41)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.09
<EXPENSE-RATIO> .97
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0

</TABLE>

<ARTICLE> 6
<CIK> 0000892538
<NAME> SUNAMERICA SERIES TRUST
<SERIES>
<NUMBER> 011
<NAME> SUNAMERICA SERIES TRUST BALANCED PHOENIX

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 69,693,096
<INVESTMENTS-AT-VALUE> 75,559,225
<RECEIVABLES> 588,021
<ASSETS-OTHER> 1,881
<OTHER-ITEMS-ASSETS> 1,084
<TOTAL-ASSETS> 76,150,211
<PAYABLE-FOR-SECURITIES> 6,073,213
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 56,440
<TOTAL-LIABILITIES> 6,129,653
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 60,805,241
<SHARES-COMMON-STOCK> 5,136,034
<SHARES-COMMON-PRIOR> 2,598,706
<ACCUMULATED-NII-CURRENT> 1,258,279
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,090,909
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,866,129
<NET-ASSETS> 70,020,558
<DIVIDEND-INCOME> 358,182
<INTEREST-INCOME> 1,466,951
<OTHER-INCOME> 0
<EXPENSES-NET> (427,513)
<NET-INVESTMENT-INCOME> 1,397,620
<REALIZED-GAINS-CURRENT> 2,107,376
<APPREC-INCREASE-CURRENT> 3,902,857
<NET-CHANGE-FROM-OPS> 7,407,853
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (540,000)
<DISTRIBUTIONS-OF-GAINS> (890,000)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,604,718
<NUMBER-OF-SHARES-REDEEMED> (1,184,892)
<SHARES-REINVESTED> 117,502
<NET-CHANGE-IN-ASSETS> 37,592,023
<ACCUMULATED-NII-PRIOR> 399,630
<ACCUMULATED-GAINS-PRIOR> 874,562
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 354,683
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 427,513
<AVERAGE-NET-ASSETS> 51,007,237
<PER-SHARE-NAV-BEGIN> 12.48
<PER-SHARE-NII> .34
<PER-SHARE-GAIN-APPREC> 1.31
<PER-SHARE-DIVIDEND> (.19)
<PER-SHARE-DISTRIBUTIONS> (.31)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.63
<EXPENSE-RATIO> .84
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0

</TABLE>

<ARTICLE> 6
<CIK> 0000892538
<NAME> SUNAMERICA SERIES TRUST
<SERIES>
<NUMBER> 012
<NAME> SUNAMERICA SERIES TRUST VENTURE VALUE

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 425,361,031
<INVESTMENTS-AT-VALUE> 516,480,531
<RECEIVABLES> 1,872,255
<ASSETS-OTHER> 11,793
<OTHER-ITEMS-ASSETS> 42,167
<TOTAL-ASSETS> 518,406,746
<PAYABLE-FOR-SECURITIES> 1,325,443
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 667,932
<TOTAL-LIABILITIES> 1,993,375
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 412,229,764
<SHARES-COMMON-STOCK> 30,564,207
<SHARES-COMMON-PRIOR> 11,503,467
<ACCUMULATED-NII-CURRENT> 3,382,016
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 9,681,750
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 91,119,841
<NET-ASSETS> 516,413,371
<DIVIDEND-INCOME> 1,803,954
<INTEREST-INCOME> 4,411,641
<OTHER-INCOME> 0
<EXPENSES-NET> (2,574,657)
<NET-INVESTMENT-INCOME> 3,640,938
<REALIZED-GAINS-CURRENT> 9,694,375
<APPREC-INCREASE-CURRENT> 75,918,718
<NET-CHANGE-FROM-OPS> 89,254,031
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,150,000)
<DISTRIBUTIONS-OF-GAINS> (1,631,000)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 24,918,067
<NUMBER-OF-SHARES-REDEEMED> (6,065,330)
<SHARES-REINVESTED> 208,003
<NET-CHANGE-IN-ASSETS> 361,505,374
<ACCUMULATED-NII-PRIOR> 889,057
<ACCUMULATED-GAINS-PRIOR> 1,620,396
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,305,064
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,574,657
<AVERAGE-NET-ASSETS> 302,096
<PER-SHARE-NAV-BEGIN> 13.47
<PER-SHARE-NII> 0.18
<PER-SHARE-GAIN-APPREC> 3.46
<PER-SHARE-DIVIDEND> (0.09)
<PER-SHARE-DISTRIBUTIONS> (0.12)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.90
<EXPENSE-RATIO> 0.85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0

</TABLE>

<ARTICLE> 6
<CIK> 0000892538
<NAME> SUNAMERICA SERIES TRUST
<SERIES>
<NUMBER> 013
<NAME> SUNAMERICA SERIES TRUST WORLDWIDE HIGH INCOME

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 45,982,637
<INVESTMENTS-AT-VALUE> 48,883,965
<RECEIVABLES> 2,858,236
<ASSETS-OTHER> 1,489
<OTHER-ITEMS-ASSETS> 60,009
<TOTAL-ASSETS> 51,803,699
<PAYABLE-FOR-SECURITIES> 2,528,539
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 70,663
<TOTAL-LIABILITIES> 2,599,202
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 40,168,259
<SHARES-COMMON-STOCK> 3,686,196
<SHARES-COMMON-PRIOR> 1,884,528
<ACCUMULATED-NII-CURRENT> 3,097,896
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 3,041,491
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,896,851
<NET-ASSETS> 49,204,497
<DIVIDEND-INCOME> 15,366
<INTEREST-INCOME> 4,274,935
<OTHER-INCOME> 0
<EXPENSES-NET> (436,372)
<NET-INVESTMENT-INCOME> 3,853,929
<REALIZED-GAINS-CURRENT> 2,579,387
<APPREC-INCREASE-CURRENT> 2,507,661
<NET-CHANGE-FROM-OPS> 8,940,977
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,700,000)
<DISTRIBUTIONS-OF-GAINS> (100,000)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,060,525
<NUMBER-OF-SHARES-REDEEMED> (2,425,678)
<SHARES-REINVESTED> 166,821
<NET-CHANGE-IN-ASSETS> 27,689,417
<ACCUMULATED-NII-PRIOR> 1,431,913
<ACCUMULATED-GAINS-PRIOR> 74,158
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 368,821
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 436,372
<AVERAGE-NET-ASSETS> 36,882
<PER-SHARE-NAV-BEGIN> 11.42
<PER-SHARE-NII> 1.25
<PER-SHARE-GAIN-APPREC> 1.60
<PER-SHARE-DIVIDEND> (0.87)
<PER-SHARE-DISTRIBUTIONS> (0.05)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.35
<EXPENSE-RATIO> 1.18
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0

</TABLE>

<ARTICLE> 6
<CIK> 0000892538
<NAME> SUNAMERICA SERIES TRUST
<SERIES>
<NUMBER> 014
<NAME> SUNAMERICA SERIES TRUST INTERNATIONAL DIVERSIFIED EQUITIES

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 151,854,179
<INVESTMENTS-AT-VALUE> 158,226,860
<RECEIVABLES> 4,678,433
<ASSETS-OTHER> 1,124,346
<OTHER-ITEMS-ASSETS> 210,132
<TOTAL-ASSETS> 164,239,771
<PAYABLE-FOR-SECURITIES> 3,367,273
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,864,105
<TOTAL-LIABILITIES> 7,231,378
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 144,459,565
<SHARES-COMMON-STOCK> 13,810,494
<SHARES-COMMON-PRIOR> 4,824,929
<ACCUMULATED-NII-CURRENT> 4,077,453
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,101,846
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7,369,529
<NET-ASSETS> 157,008,393
<DIVIDEND-INCOME> 1,830,322
<INTEREST-INCOME> 283,647
<OTHER-INCOME> 0
<EXPENSES-NET> (1,632,594)
<NET-INVESTMENT-INCOME> 481,375
<REALIZED-GAINS-CURRENT> 6,981,073
<APPREC-INCREASE-CURRENT> 4,742,207
<NET-CHANGE-FROM-OPS> 12,204,655
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,350,000)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 12,354,619
<NUMBER-OF-SHARES-REDEEMED> (3,499,995)
<SHARES-REINVESTED> 130,941
<NET-CHANGE-IN-ASSETS> 108,047,734
<ACCUMULATED-NII-PRIOR> (346,916)
<ACCUMULATED-GAINS-PRIOR> (586,233)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,025,593
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,632,594
<AVERAGE-NET-ASSETS> 102,559
<PER-SHARE-NAV-BEGIN> 10.15
<PER-SHARE-NII> 0.05
<PER-SHARE-GAIN-APPREC> 1.43
<PER-SHARE-DIVIDEND> (0.26)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.37
<EXPENSE-RATIO> 1.59
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0

</TABLE>

<ARTICLE> 6
<CIK> 0000892538
<NAME> SUNAMERICA SERIES TRUST
<SERIES>
<NUMBER> 015
<NAME> SUNAMERICA SERIES TRUST UTILITY

<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> JUN-03-1996
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 6,136,436
<INVESTMENTS-AT-VALUE> 6,424,127
<RECEIVABLES> 82,770
<ASSETS-OTHER> 2,172
<OTHER-ITEMS-ASSETS> 637
<TOTAL-ASSETS> 6,509,706
<PAYABLE-FOR-SECURITIES> 168,966
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 42,093
<TOTAL-LIABILITIES> 211,059
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 5,916,489
<SHARES-COMMON-STOCK> 585,876
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 81,475
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 12,853
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 287,830
<NET-ASSETS> 6,298,647
<DIVIDEND-INCOME> 94,594
<INTEREST-INCOME> 6,557
<OTHER-INCOME> 0
<EXPENSES-NET> (19,446)
<NET-INVESTMENT-INCOME> 81,705
<REALIZED-GAINS-CURRENT> 12,623
<APPREC-INCREASE-CURRENT> 287,830
<NET-CHANGE-FROM-OPS> 382,158
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 602,909
<NUMBER-OF-SHARES-REDEEMED> (17,033)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 6,298,647
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 13,890
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 35,662
<AVERAGE-NET-ASSETS> 3,744,971
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .24
<PER-SHARE-GAIN-APPREC> .51
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.75
<EXPENSE-RATIO> 1.05
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0

</TABLE>

<ARTICLE> 6
<CIK> 0000892538
<NAME> SUNAMERICA SERIES TRUST
<SERIES>
<NUMBER> 016
<NAME> SUNAMERICA SERIES TRUST SUNAMERICA BALANCED

<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> JUN-03-1996
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 9,164,380
<INVESTMENTS-AT-VALUE> 9,987,188
<RECEIVABLES> 259,301
<ASSETS-OTHER> 214
<OTHER-ITEMS-ASSETS> 2,409
<TOTAL-ASSETS> 10,249,112
<PAYABLE-FOR-SECURITIES> 8,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 17,318
<TOTAL-LIABILITIES> 25,318
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 9,316,155
<SHARES-COMMON-STOCK> 918,897
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 56,068
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 28,763
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 822,808
<NET-ASSETS> 10,223,794
<DIVIDEND-INCOME> 22,547
<INTEREST-INCOME> 62,733
<OTHER-INCOME> 0
<EXPENSES-NET> (29,212)
<NET-INVESTMENT-INCOME> 56,068
<REALIZED-GAINS-CURRENT> 28,763
<APPREC-INCREASE-CURRENT> 822,808
<NET-CHANGE-FROM-OPS> 907,639
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,113,491
<NUMBER-OF-SHARES-REDEEMED> (194,594)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 10,223,794
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 20,449
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 41,704
<AVERAGE-NET-ASSETS> 5,907,132
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.10
<PER-SHARE-GAIN-APPREC> 1.03
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.13
<EXPENSE-RATIO> 1.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0

</TABLE>

<ARTICLE> 6
<CIK> 0000892538
<NAME> SUNAMERICA SERIES TRUST
<SERIES>
<NUMBER> 017
<NAME> SUNAMERICA SERIES TRUST FEDERATED VALUE

<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> JUN-03-1996
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 11,119,437
<INVESTMENTS-AT-VALUE> 12,315,546
<RECEIVABLES> 216,977
<ASSETS-OTHER> 208
<OTHER-ITEMS-ASSETS> 941
<TOTAL-ASSETS> 12,533,672
<PAYABLE-FOR-SECURITIES> 52,272
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 21,872
<TOTAL-LIABILITIES> 74,144
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 11,245,757
<SHARES-COMMON-STOCK> 1,124,250
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 40,137
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (22,475)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,196,109
<NET-ASSETS> 12,459,528
<DIVIDEND-INCOME> 64,547
<INTEREST-INCOME> 9,153
<OTHER-INCOME> 0
<EXPENSES-NET> (33,563)
<NET-INVESTMENT-INCOME> 40,137
<REALIZED-GAINS-CURRENT> (22,475)
<APPREC-INCREASE-CURRENT> 1,196,109
<NET-CHANGE-FROM-OPS> 1,213,771
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,158,140
<NUMBER-OF-SHARES-REDEEMED> (33,890)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 12,459,528
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 23,973
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 50,240
<AVERAGE-NET-ASSETS> 6,463,400
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.07
<PER-SHARE-GAIN-APPREC> 1.01
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.08
<EXPENSE-RATIO> 1.05
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0

</TABLE>

<ARTICLE> 6
<CIK> 0000892538
<NAME> SUNAMERICA SERIES TRUST
<SERIES>
<NUMBER> 018
<NAME> SUNAMERICA SERIES TRUST AGGRESSIVE GROWTH

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> NOV-03-1996
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 31,810,867
<INVESTMENTS-AT-VALUE> 34,902,080
<RECEIVABLES> 334,684
<ASSETS-OTHER> 597
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 35,237,361
<PAYABLE-FOR-SECURITIES> 30,543
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 82,516
<TOTAL-LIABILITIES> 113,059
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 32,699,261
<SHARES-COMMON-STOCK> 3,389,423
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 39,730
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (705,902)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,091,213
<NET-ASSETS> 35,124,302
<DIVIDEND-INCOME> 26,838
<INTEREST-INCOME> 104,281
<OTHER-INCOME> 0
<EXPENSES-NET> (91,389)
<NET-INVESTMENT-INCOME> 39,730
<REALIZED-GAINS-CURRENT> (705,902)
<APPREC-INCREASE-CURRENT> 3,091,213
<NET-CHANGE-FROM-OPS> 2,425,041
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,051,127
<NUMBER-OF-SHARES-REDEEMED> (661,704)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 35,124,302
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 65,277
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 94,574
<AVERAGE-NET-ASSETS> 17,599,608
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.02
<PER-SHARE-GAIN-APPREC> 0.34
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.36
<EXPENSE-RATIO> 1.05
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0

</TABLE>