<PAGE> 1
As filed with the Securities and Exchange Commission on December 30, 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. 13 X
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY
ACT OF 1940 _
Amendment No. 15 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)
X immediately upon filing pursuant to paragraph (b)
- ---
on (date) pursuant to paragraph (b)
- ---
___ 60 days after filing pursuant to paragraph (a)
___ on (date) pursuant to paragraph (a) of Rule 485
--------------------
================================================================================
<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
SUNAMERICA SERIES TRUST
Supplement to the Prospectus dated May 14, 1997
The date of the Prospectus is hereby changed to December 31, 1997.
The following supplements the information contained in the Prospectus.
THE FINANCIAL HIGHLIGHTS
The following financial information replaces the financial information under
the heading entitled "Financial Highlights" on pages 4, 5 and 6 of the
Prospectus. These Financial Highlights should be read in conjunction with the
financial statements and notes thereto, which are included in the Statement of
Additional Information and are incorporated by reference herein.
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
The following Financial Highlights for the Portfolios and periods set forth
below have been audited (except where noted) by Price Waterhouse LLP, the
Trust's independent accountants, whose report on the financial statements
containing such information is included in the Trust's Annual Report to
Shareholders. These Financial Highlights* should be read in conjunction with
the financial statements and notes thereto, which are included in the Statement
of Additional Information.
<TABLE>
<CAPTION>
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
========================================================================================================================
Cash Management Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
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
11/30/97# 10.76 0.53 0.01 0.54 (0.56) -- 10.74
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Corporate Bond Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
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
11/30/97# 11.09 0.77 0.21 0.98 (0.53) -- 11.54
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Global Bond Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
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
11/30/97# 11.40 0.52 0.38 0.90 (0.75) (0.04) 11.51
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
High-Yield Bond Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
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
11/30/97# 11.04 1.04 0.48 1.52 (0.74) -- 11.82
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Worldwide High Income Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
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
11/30/97# 13.35 0.98 0.68 1.66 (0.90) (0.91) 13.20
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SunAmerica Balanced Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
6/3/96-11/30/96 10.00 0.10 1.03 1.13 -- -- 11.13
11/30/97# 11.13 0.23 2.15 2.38 (0.04) (0.02) 13.45
========================================================================================================================
<CAPTION>
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@
========================================================================================================================
Cash Management Portfolio
<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
11/30/97# 5.22 156,119 0.6 5.06 -- N/A
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Corporate Bond Portfolio
<S> <C> <C> <C> <C> <C> <C>
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
11/30/97# 9.26 62,272 0.91 6.99 49 N/A
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Global Bond Portfolio
<S> <C> <C> <C> <C> <C> <C>
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
11/30/97# 8.43 89,043 0.90 4.70 360 N/A
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
High-Yield Bond Portfolio
<S> <C> <C> <C> <C> <C> <C>
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
11/30/97# 14.53 195,639 0.75 9.26 243 N/A
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Worldwide High Income Portfolio
<S> <C> <C> <C> <C> <C> <C>
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
11/30/97# 14.17 125,224 1.10 7.58 146 N/A
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SunAmerica Balanced Portfolio
<S> <C> <C> <C> <C> <C> <C>
6/3/96-11/30/96 11.30 10,224 1.00+++ 1.92+++ 40 0.0600
11/30/97# 21.48 44,621 1.00 1.82 143 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.
# Unaudited
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995, 1996 and 1997, the investment adviser waived a portion of or all fees
and assumed a portion of or all expenses for the Portfolios. If all fees and expenses had been incurred by the Portfolios,
the ratio of expenses to average net assets and the ratio of net investment income (loss) to average net assets would have
been as follows:
</TABLE>
<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME
------------------------------------ ----------------------------------------
---------------------- ----------------------
1993 1994 1995 1996 1997 1993 1994 1995 1996 1997
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Cash Management Portfolio.............. 1.10% 0.78% 0.67% 0.62% 0.63% 2.14% 3.65% 5.32% 4.90% 5.06%
Corporate Bond Portfolio............... 1.81 1.09 0.97 0.97 0.91 3.05 5.06 5.92 6.11 6.99
Global Bond Portfolio.................. 1.81 1.06 0.95 0.89 0.90 3.10 5.29 5.89 5.44 4.70
High-Yield Bond Portfolio.............. 1.29 0.93 0.80 0.77 0.75 9.08 11.06 10.80 9.41 9.26
Worldwide High Income Portfolio........ -- 2.26 1.30 1.18 1.10 -- 3.82 10.46 10.45 7.58
SunAmerica Balanced Portfolio.......... -- -- -- 1.43 1.00 -- -- -- 1.49 1.82
--------------------------------------- -------------------------------------- -------------------------------------
</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
11/30/97#
==========================================================================================================================
</TABLE>
2
<PAGE> 5
The following Financial Highlights for the Portfolios and periods set forth
below have been audited (except where noted) by Price Waterhouse LLP, the
Trust's independent accountants, whose report on the financial statements
containing such information is included in the Trust's Annual Report to
Shareholders. These Financial Highlights* should be read in conjunction with
the financial statements and notes thereto, which are included in the Statement
of Additional Information.
<TABLE>
<CAPTION>
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
========================================================================================================================
Balanced/Phoenix Investment Counsel Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
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
11/30/97# 13.63 0.37 1.39 1.76 (0.23) (0.41) 14.75
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Asset Allocation Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
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
11/30/97# 14.52 0.44 2.56 3.00 (0.40) (0.91) 16.21
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Utility Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
6/3/96-11/30/96 10.00 0.24 0.51 0.75 -- -- 10.75
11/30/97# 10.75 0.36 1.91 2.27 (0.09) (0.02) 12.91
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Growth-Income Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
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
11/30/97# 16.82 0.17 4.69 4.86 (0.13) (0.73) 20.82
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Federated Value Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
6/3/96-11/30/96 10.00 0.07 1.01 1.08 -- -- 11.08
11/30/97# 11.08 0.13 2.72 2.85 (0.03) -- 13.90
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Venture Value Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
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
11/30/97# 16.90 0.19 4.73 4.92 (0.09) (0.26) 21.47
========================================================================================================================
<CAPTION>
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@
========================================================================================================================
Balanced/Phoenix Investment Counsel Portfolio
<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
11/30/97# 13.52 95,721 0.82 2.63 271 0.0526
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Asset Allocation Portfolio
<S> <C> <C> <C> <C> <C> <C>
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
11/30/97# 21.97 526,585 0.68 2.88 176 0.0591
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Utility Portfolio
<S> <C> <C> <C> <C> <C> <C>
6/3/96-11/30/96 7.50 6,299 1.05+++ 4.41+++ 24 0.0439
11/30/97# 21.26 24,366 1.05++ 3.15++ 77 0.0365
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Growth-Income Portfolio
<S> <C> <C> <C> <C> <C> <C>
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
11/30/97# 30.11 622,062 0.65 0.89 44 0.0555
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Federated Value Portfolio
<S> <C> <C> <C> <C> <C> <C>
6/3/96-11/30/96 10.80 12,460 1.05+++ 1.26+++ 30 0.0520
11/30/97# 25.75 59,024 1.03 1.03 46 0.0494
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Venture Value Portfolio
<S> <C> <C> <C> <C> <C> <C>
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
11/30/97# 29.62 1,140,053 0.79 0.98 22 0.0599
========================================================================================================================
* 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.
# Unaudited
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995, 1996 and 1997, the investment adviser waived a portion of or all fees
and assumed a portion of or all expenses for the Portfolios. If all fees and expenses had been incurred by the Portfolios,
the ratio of expenses to average net assets and the ratio of net investment income (loss) to average net assets would have
been as follows:
</TABLE>
<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME (LOSS)
----------------------------------------- -------------------------------------------
1993 1994 1995 1996 1997 1993 1994 1995 1996 1997
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Balanced/Phoenix Investment
Counsel Portfolio................ --% 6.82% 1.11% 0.84% 0.82% --% (1.57)% 2.95% 2.74% 2.63%
Asset Allocation Portfolio......... 1.67 0.94 0.81 0.74 0.68 1.65 2.71 3.62 3.66 2.88
Utility Portfolio.................. -- -- -- 1.93 1.24 -- -- -- 3.53 2.96
Growth-Income Portfolio............ 1.40 0.89 0.77 0.72 0.65 1.01 1.18 1.42 1.21 0.89
Federated Value Portfolio.......... -- -- -- 1.57 1.03 -- -- -- 0.74 1.03
Venture Value Portfolio............ -- 3.89 1.02 0.85 0.79 -- 1.14 1.41 1.21 0.98
==============================================================================================================================
</TABLE>
3
<PAGE> 6
The following Financial Highlights for the Portfolios and periods set forth
below have been audited (except where noted) by Price Waterhouse LLP, the
Trust's independent accountants, whose report on the financial statements
containing such information is included in the Trust's Annual Report to
Shareholders. These Financial Highlights* should be read in conjunction with
the financial statements and notes thereto, which are included in the Statement
of Additional Information.
<TABLE>
<CAPTION>
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
========================================================================================================================
Alliance Growth Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
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
11/30/97# 18.73 0.08 4.84 4.92 (0.05) (1.04) 22.56
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Growth/Phoenix Investment Counsel Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
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
11/30/97# 14.39 0.11 2.48 2.59 (0.10) (1.26) 15.62
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Putnam Growth Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
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
11/30/97# 15.71 0.03 3.93 3.96 -- (0.52) 19.15
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Real Estate Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
6/2/97-11/30/97# 10.00 0.16 1.37 1.53 -- -- 11.53
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Aggressive Growth Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
6/3/96-11/30/96 10.00 0.02 0.34 0.36 -- -- 10.36
11/30/97# 10.36 0.01 1.40 1.41 (0.01) -- 11.76
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
International Growth and Income Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
6/2/97-11/30/97# 10.00 0.03 0.38 0.41 -- -- 10.41
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Global Equities Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
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
11/30/97# 14.92 0.09 1.79 1.88 (0.13) (0.69) 15.98
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
International Diversified Equities Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
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
11/30/97# 11.37 0.09 0.28 0.37 (0.31) (0.10) 11.33
=======================================================================================================================
<CAPTION>
Emerging Markets Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
6/2/97-11/30/97# 10.00 0.06 (2.03) (1.97) -- -- 8.03
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
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 @
=======================================================================================================================
Alliance Growth Portfolio
<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
11/30/97# 27.80 704,533 0.65 0.37 110 0.0617
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Growth/Phoenix Investment Counsel Portfolio
<S> <C> <C> <C> <C> <C> <C>
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
11/30/97# 19.78 218,496 0.73 0.77 217 0.0530
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Putnam Growth Portfolio****
<S> <C> <C> <C> <C> <C> <C>
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
11/30/97# 26.01 234,726 0.91 0.18 125 0.0322
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Real Estate Portfolio
<S> <C> <C> <C> <C> <C> <C>
6/2/97-11/30/97# 15.30 29,565 1.25+++ 3.25+++ 7 0.0600
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Aggressive Growth Portfolio
<S> <C> <C> <C> <C> <C> <C>
6/3/96-11/30/96 3.60 35,124 1.05+++ 0.46+++ 47 0.0600
11/30/97# 13.62 103,603 0.90 (0.13) 221 0.0600
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
International Growth and Income Portfolio
<S> <C> <C> <C> <C> <C> <C>
6/2/97-11/30/97# 4.10 42,845 1.60+++ 0.61+++ 19 0.0030
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Global Equities Portfolio
<S> <C> <C> <C> <C> <C> <C>
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
11/30/97# 13.30 341,639 0.95 0.58 115 0.0284
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
International Diversified Equities Portfolio
<S> <C> <C> <C> <C> <C> <C>
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
11/30/97# 3.52 248,927 1.35 0.82 56 0.0008
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Emerging Markets Portfolio
<S> <C> <C> <C> <C> <C> <C>
6/2/97-11/30/97# (19.70) 19,979 1.90+++ 1.33+++ 49 0.0011
=======================================================================================================================
</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.
# Unaudited
+Annualized
# During the periods ended November 30, 1993, 1994, 1995, 1996 and 1997, the
investment adviser waived a portion of or all fees and assumed a portion
of or all expenses for the Portfolios. If all fees and expenses had been
incurred by the Portfolios, the ratio of expenses to average net assets
and the ratio of net investment income (loss) to average net assets would
have been as follows:
<TABLE>
<CAPTION>
EXPENSES
--------------------------------------------
1993 1994 1995 1996 1997
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Alliance Growth Portfolio.................. 1.56% 0.96% 0.79% 0.71% 0.65%
Growth/Phoenix Investment Counsel
Portfolio................................. 1.28 0.87 0.76 0.74 0.73
Putnam Growth Portfolio.................... 1.46 1.05 0.93 0.90 0.91
Real Estate Portfolio ..................... -- -- -- -- 1.36
Aggressive Growth Portfolio................ -- -- -- 1.09 0.90
International Growth and Income Portfolio.. -- -- -- -- 2.02
Global Equities Portfolio.................. 2.52 1.28 1.14 1.03 0.95
International Diversified Equities
Portfolio................................. -- 3.50 2.09 1.59 1.35
Emerging Markets Portfolio................. -- -- -- -- 2.60
===========================================================================================
<CAPTION>
NET INVESTMENT INCOME (LOSS)
-------------------------------------------------
1993 1994 1995 1996 1997
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Alliance Growth Portfolio................ (0.13)% 0.23% 0.51% 0.51% 0.37%
Growth/Phoenix Investment Counsel
Portfolio............................... 1.74 1.46 1.01 0.82 0.77
Putnam Growth Portfolio.................. (0.17) 0.22 (0.05) (0.02) 0.18
Real Estate Portfolio ................... -- -- -- -- 3.14
Aggressive Growth Portfolio.............. -- -- -- 0.42 (0.13)
International Growth and Income Portfolio -- -- -- -- 0.19
Global Equities Portfolio................ (0.64) 0.42 1.02 1.04 0.58
International Diversified Equities
Portfolio............................... -- (0.20) 0.37 0.47 0.82
Emerging Markets Portfolio............... -- -- -- -- 0.63
===========================================================================================
</TABLE>
4
<PAGE> 7
Statement of Additional Information
SUNAMERICA SERIES TRUST
This Statement of Additional Information is not a prospectus, but should be
read in conjunction with the current Prospectus of SunAmerica
Series Trust ("Trust"). Capitalized terms used herein but not defined have the
meanings assigned to them in the Prospectus. The Prospectus
may be obtained by writing to the Trust at the following address:
P.O. Box 54299
Los Angeles, California 90054-0299
December 30, 1997
<PAGE> 8
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-31
Trust Officers and Trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-36
Investment Advisory and Management Agreement . . . . . . . . . . . . . . . . . . . . . . . . B-38
Subadvisory Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-41
Dividends, Distributions and Federal Taxes . . . . . . . . . . . . . . . . . . . . . . . . . B-44
Price of Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-44
Execution of Portfolio Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-46
General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-51
Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-53
</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 Anchor National
Life Insurance Company, an Arizona corporation, and First SunAmerica Life
Insurance Company, a New York corporation. Anchor National Life Insurance
Company and First SunAmerica Life Insurance Company are wholly owned
B-2
<PAGE> 9
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 two highest categories by Standard & Poor's Ratings Services, a
Division of The McGraw-Hill Companies, Inc.
B-3
<PAGE> 10
("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 that the
borrower could not make timely repayment upon demand.
B-4
<PAGE> 11
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 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.
B-5
<PAGE> 12
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 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
B-6
<PAGE> 13
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
Chile Mexico South Africa
Czech Republic Morocco Thailand
Egypt Pakistan Turkey
Greece Peru Uruguay
Hungary Philippines Venezuela
B-7
<PAGE> 14
As opportunities to invest in debt securities in other emerging
countries develop, the Portfolio expects to expand and further diversify the
emerging countries in which it invests. While the Portfolio generally is not
restricted in the portion of its assets which may be invested in a single
country or region, it is anticipated that, under normal circumstances, the
Portfolio's assets will be invested in at least three countries.
The Portfolio's investments in government and government-related and
restructured debt securities will consist of (i) debt securities or obligations
issued or guaranteed by governments, governmental agencies or instrumentalities
and political subdivisions located in emerging countries (including
participation in loans between governments and financial institutions), (ii)
debt securities or obligations issued by government owned, controlled or
sponsored entities located in emerging countries, and (iii) interests in
issuers organized and operated for the purpose of restructuring the investment
characteristics of instruments issued by any of the entities described above.
Such type of restructuring involves the deposit with or purchase by an entity
of specific instruments and the issuance by that entity of one or more classes
of securities backed by, or representing an interest in, the underlying
instruments. Certain issuers of such structured securities may be deemed to be
"investment companies" as defined in the Investment Company Act of 1940, as
amended, (the "1940 Act"). As a result, the Portfolio's investment in such
securities may be limited by certain investment restrictions contained in the
1940 Act.
The Portfolio's investments in debt securities of corporate issuers in
emerging countries may include debt securities or obligations issued (i) by
banks located in emerging countries or by branches of emerging country banks
located outside the country or (ii) by companies organized under the laws of an
emerging country. Determinations as to eligibility will be made by the
Subadviser based on publicly available information and inquiries made to the
issuer. The Portfolio may also invest in certain debt obligations customarily
referred to as "Brady Bonds," which are created through the exchange of
existing commercial bank loans to foreign entities for new obligations in
connection with debt restructuring under a plan introduced by former U.S.
Secretary of the Treasury Nicholas F. Brady.
Emerging country debt securities held by the Portfolio will take the
form of bonds, notes, bills, debentures, convertible securities, warrants, bank
debt 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
B-8
<PAGE> 15
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 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
B-9
<PAGE> 16
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 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.
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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 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
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<PAGE> 18
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 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
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<PAGE> 19
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 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."
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<PAGE> 20
FLOATING RATE OBLIGATIONS. These securities have a coupon rate that
changes at least annually and generally more frequently. The coupon rate is
set in relation to money market rates. The obligations, issued primarily by
banks, other corporations, governments and semi-governmental bodies, may have a
maturity in excess of one year. In some cases, the coupon rate may vary with
changes in the yield on Treasury bills or notes or with changes in LIBOR
(London Interbank Offering Rate). The Adviser considers floating rate
obligations to be liquid investments because a number of United States and
foreign securities dealers make active markets in these securities.
COVERED OPTIONS. Each Portfolio may write (sell) covered call and
put options on any securities in which it may invest. A Portfolio may purchase
and write such options on securities that are listed on national domestic
securities exchanges (and, for certain Portfolios, foreign securities
exchanges) or traded in the over-the-counter market. A call option written by
a Portfolio obligates a Portfolio to sell specified securities to the holder of
the option at a specified price if the option is exercised at any time before
the expiration date. All call options written by a Portfolio are covered,
which means that a Portfolio will own the securities subject to the option so
long as the option is outstanding. The purpose of writing covered call options
is to realize greater income than would be realized on portfolio securities
transactions alone. However, in writing covered call options for additional
income, a Portfolio may forego the opportunity to profit from an increase in
the market price of the underlying security.
A put option written by a Portfolio would obligate a Portfolio to
purchase specified securities from the option holder at a specified price if
the option is exercised at any time before the expiration date. All put
options written by a Portfolio would be covered, which means that the Portfolio
would have deposited with its custodian cash, U.S. government securities or
other high-grade debt securities (i.e., securities rated in one of the top
three categories by Moody's or Standard & Poor's, or, if unrated, deemed
by the Adviser or subadviser to be of comparable credit quality) with a value
at least equal to the exercise price of the put option. The purpose of writing
such options is to generate additional income for a Portfolio. However, in
return for the 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
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<PAGE> 21
enhance return. Each Portfolio may engage in strategies including the purchase
and sale of forward foreign currency exchange contracts, currency and financial
index futures contracts (including, in the case of the Global Equities
Portfolio, stock index futures) and options thereon, put and call options on
currencies and financial indices, and combinations thereof. The Adviser or
Subadviser will use such techniques as market conditions warrant. Each
Portfolio's ability to use these strategies may be limited by market conditions,
regulatory limits and tax considerations and there can be no assurance that any
of these strategies will succeed. New financial products and risk management
techniques continue to be developed and these Portfolios may use these new
investments and techniques to the extent consistent with their investment
objective and policies.
In addition to direct investment, the Portfolios which may invest in
foreign securities may also invest in American Depositary Receipts ("ADRs") and
in other Depositary Receipts, including Global Depositary Receipts ("GDRs"),
European Depositary Receipts ("EDRs") and others (which, together with ADRs,
GDRs and EDRs, are hereinafter collectively referred to as "Depositary
Receipts"), to the extent that such Depositary Receipts become available. ADRs
are securities, typically issued by a U.S. financial institution (a
"depositary"), that evidence ownership interests in a security or a pool of
securities issued by a foreign issuer (the "underlying issuer") and deposited
with the depositary. ADRs include American Depositary Shares and New York
Shares and may be "sponsored" or "unsponsored." Sponsored ADRs are established
jointly by a depositary and the underlying issuer, whereas unsponsored ADRs may
be established by a depositary without participation by the underlying issuer.
GDRs, EDRs and other types of Depositary Receipts are typically issued by
foreign depositaries, although they may also be issued by U.S. depositaries,
and evidence ownership interests in a security or pool of securities issued by
either a foreign or a U.S. corporation. Holders of unsponsored Depositary
Receipts generally bear all the costs associated with establishing the
unsponsored Depositary Receipt. The depositary of unsponsored Depositary
Receipts is under no obligation to distribute shareholder communications
received from the underlying issuer or to pass through to the holders of the
unsponsored Depositary Receipt voting rights with respect to the deposited
securities or pool of securities. Depositary Receipts are not necessarily
denominated in the same currency as the underlying securities to which they may
be connected. Generally, Depositary Receipts in registered form are designed
for use in the U.S. 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
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<PAGE> 22
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
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:
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<PAGE> 23
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 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.
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<PAGE> 24
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 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
B-18
<PAGE> 25
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.
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
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<PAGE> 26
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 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
B-20
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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:
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
B-21
<PAGE> 28
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
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
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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.
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.
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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 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.
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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 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
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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.
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
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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 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.
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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 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.
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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 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.
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Standard & Poor's rates the long-term securities debt of various
entities in categories ranging from "AAA" to "D" according to quality. AAA -
Highest rating. Capacity to pay interest and repay principal is extremely
strong. AA - High grade. Very strong capacity to pay interest and repay
principal. Generally, these bonds differ from AAA issues only in a small degree.
A - Have a strong capacity to pay interest and repay principal, although they
are somewhat more susceptible to the adverse effects of change in circumstances
and economic conditions than debt in higher rated categories. BBB - Regarded as
having adequate capacity to pay interest and repay principal. These bonds
normally exhibit adequate protection parameters, but adverse economic conditions
or changing circumstances are more likely to lead to a weakened capacity to pay
interest and repay principal than for debt in higher rated categories. BB, B,
CCC, CC, C - Regarded, on balance, as predominately speculative with respect to
capacity to pay interest and repay principal in accordance with the terms of the
obligation. BB indicated the lowest degree of speculation and C the highest
degree of speculative. While this debt will likely have some quality and
protective characteristics, these are outweighed by large uncertainties or major
risk exposures to adverse conditions. C1 - Reserved for income bonds on which no
interest is being paid. D - In default and payment of interest and/or repayment
of principal is in arrears.
Fitch rates the long-term debt securities issued by various entities in
categories "AAA" to "D" according to quality. AAA is considered to be investment
grade and of the highest credit quality. The ability to pay interest and repay
principal is exceptionally strong. AA is considered to be investment grade and
of very high credit quality. The ability to pay interest and repay principal is
very strong, although not quite as strong as AAA issues. A is considered to be
investment grade and of high credit quality. The ability to pay interest and
repay principal is strong, but these issues may be more vulnerable to adverse
changes in economic conditions and circumstances than higher rated issues. BBB
is considered to be investment grade and of satisfactory credit quality. The
ability to pay interest and repay principal is adequate. These issues are more
likely to be affected by adverse changes 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
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characteristics which may lead to default. The ability to meet obligations
requires an advantageous business and economic environment. CC issues are
minimally protected and default in payment of interest and/or principal seems
probable over time. Issues rated C are in imminent default in payment of
interest or principal. DDD, DD, and D issues are in default on interest and/or
principal payments and are extremely speculative. Plus(+) and minus(-) signs are
used with a rating symbol to indicate the relative position within the rating
category.
Duff & Phelps rates long-term debt specifically to credit quality,
i.e., the likelihood of timely payment for principal and interest. AAA is
considered the highest quality. AA is considered high quality. A is regarded
as good quality. BBB is considered to be investment grade and of satisfactory
credit quality. BB and B are considered to be non-investment grade and CCC is
regarded as speculative. Ratings in the long-term debt categories may include
a plus(+) or minus(-) designation which indicates where within the respective
category the issue is placed.
BankWatch rates the long-term debt securities issued by various
entities either AAA or AA. AAA is the highest category, which indicates the
ability to repay principal and interest on a timely basis is very high. AA is
the second highest category, which indicates a superior ability to repay
principal and interest on a timely basis with limited incremental risk versus
issues rated in the highest category. Ratings in the long-term debt categories
may include a plus (+) or minus (-) designation which indicates where within
the respective category the issue is placed.
INVESTMENT RESTRICTIONS
The Trust has adopted certain investment restrictions for each
Portfolio that cannot be changed without approval by a majority of its
outstanding voting securities. Such majority is defined as the vote of the
lesser of (i) 67% or more of the outstanding shares of the Portfolios present
at a meeting, if the holders of more than 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
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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.
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
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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,
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
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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 Utility 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
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<PAGE> 41
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.
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.
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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 and Seasons Series
Trust. 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).
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.
</TABLE>
B-36
<PAGE> 43
<TABLE>
<CAPTION>
Name, Age and Position(s) Principal Occupation(s) During Past Five Years
------------------------- -----------------------------------------------
Held with the Trust
-------------------
<S> <C>
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, 40, 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>
* 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.
B-37
<PAGE> 44
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, 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
B-38
<PAGE> 45
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 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
B-39
<PAGE> 46
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>
<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.
B-40
<PAGE> 47
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.
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.
B-41
<PAGE> 48
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
- ------------------------------------------------------------------------------------------------
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>
B-42
<PAGE> 49
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
- -------------------------------------------------------------------------------------------------------------
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.
B-43
<PAGE> 50
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.
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.
B-44
<PAGE> 51
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 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.
B-45
<PAGE> 52
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 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
B-46
<PAGE> 53
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 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.
B-47
<PAGE> 54
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> 55
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> 56
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.
B-50
<PAGE> 57
The Adviser and the Subadvisers and their respective affiliates may
manage, or have proprietary interests in, accounts with similar or dissimilar or
the same investment objectives as one or more Portfolios of the Trust. Such
account may or may not be in competition with a Portfolio for investments.
Investment decisions for such accounts are based on criteria relevant to such
accounts; portfolio decisions and results of the Portfolio's investments may
differ from those of such other accounts. There is no obligation to make
available for use in managing the Portfolio any information or strategies used
or developed in managing such accounts. In addition, when two or more accounts
seek to purchase or sell the same assets, the assets actually purchased or sold
may be allocated among accounts on a good faith equitable basis at the
discretion of the account's adviser. In some cases, this system may adversely
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.
B-51
<PAGE> 58
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 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.
B-52
<PAGE> 59
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 and the unaudited financial statements for the period ended
November 30, 1997. The audited financial statements with respect to the fiscal
year ended November 30, 1996 are incorporated herein by reference from
Post-Effective Amendment No. 12 to the Registrant's Registration Statement on
Form N-1A filed with the Securities and Exchange Commission on May 7, 1997.
B-53
<PAGE> 60
<PAGE> 1
- ---------------------
SUNAMERICA SERIES TRUST
CASH MANAGEMENT PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 91.0% AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
CERTIFICATES OF DEPOSIT -- 5.8%
Rabobank Nederland N. V. 6.07% due 3/26/98............................ $ 4,000,000 $ 4,000,098
Rabobank Nederland N. V. 6.20% due 4/09/98............................ 1,000,000 1,000,522
Sanwa Bank Ltd. 5.72% due 1/20/98..................................... 4,000,000 4,000,149
-------------
TOTAL CERTIFICATES OF DEPOSIT (cost $9,000,112)....................... 9,000,769
-------------
COMMERCIAL PAPER -- 58.4%
Accor SA 5.61% due 1/21/98............................................ 5,000,000 4,960,263
Avnet, Inc. 5.70% due 2/13/98......................................... 3,000,000 2,964,911
Banco Credito Nacional 5.55% due 2/03/98.............................. 2,000,000 1,979,804
Bavaria Global Corp. 5.60% due 1/15/98................................ 3,000,000 2,979,000
BTM Capital Corp. 5.65% due 1/26/98................................... 5,000,000 4,956,056
Certain Funding Corp. 5.66% due 2/12/98............................... 5,000,000 4,941,295
Commed Fuel, Inc. 5.55% due 1/29/98................................... 5,000,000 4,953,538
Cooperative Association of Tractor Dealers 5.57% due 2/24/98.......... 5,000,000 4,932,944
Cregem North America Inc. 5.55% due 1/06/98........................... 4,000,000 3,977,800
Demir Funding Corp. 5.57% due 1/12/98................................. 3,000,000 2,980,505
First Data Corp. 5.55% due 2/18/98.................................... 5,000,000 4,937,678
Greenwich Asset Funding, Inc. 5.55% due 1/22/98....................... 4,000,000 3,967,933
Guinness PLC 5.58% due 1/21/98........................................ 4,000,000 3,968,380
Merrill Lynch & Co., Inc. 5.58% due 1/08/98........................... 4,000,000 3,976,440
Minmetals Capital & Securities, Inc. 5.59% due 12/08/97............... 3,000,000 2,996,739
Morgan J P & Co., Inc. 5.57% due 1/30/98.............................. 5,000,000 4,952,750
Morgan Stanley Group, Inc. 5.58% due 1/08/98.......................... 4,000,000 3,976,440
National City Corp. 5.58% due 1/26/98................................. 3,000,000 2,973,960
Repeat Offering Securitization Entity (ROSE), Inc. 5.65% due
2/06/98............................................................. 5,000,000 4,947,051
Safeco Corp. 5.62% due 1/15/98........................................ 4,000,000 3,971,900
Transport Adora De Gas 5.62% due 1/22/98.............................. 4,000,000 3,967,529
Tribune Co. 5.60% due 2/13/98......................................... 3,000,000 2,964,665
Working Capital Management Co., L.P. 5.70% due 1/23/98................ 4,000,000 3,966,433
-------------
TOTAL COMMERCIAL PAPER (cost $91,201,451)............................. 91,194,014
-------------
CORPORATE SHORT-TERM NOTES -- 19.2%
American General Finance Corp. 7.25% due 3/01/98...................... 2,000,000 2,006,960
Barnett Banks, Inc. 5.84% due 12/28/97(1)............................. 3,000,000 3,006,270
Bear Stearns Co., Inc. 5.72% due 1/06/98(1)........................... 2,500,000 2,500,000
Bear Stearns Co., Inc. 5.73% due 2/10/98(1)........................... 3,000,000 3,000,000
First Interstate Bancorp 11.00% due 3/05/98........................... 2,630,000 2,663,243
General Motors Acceptance Corp. 5.88% due 2/06/98(1).................. 4,000,000 4,004,800
Lehman Brothers Holdings, Inc. 5.99% due 12/02/97(1).................. 2,000,000 2,002,400
Nationsbank Corp. 6.63% due 1/15/98................................... 2,705,000 2,707,259
Norwest Corp. 5.75% due 3/15/98....................................... 2,000,000 1,999,700
Sigma Finance Corp. 6.28% due 4/24/98................................. 4,000,000 4,003,693
USL Capital Corp. 5.86% due 1/06/98(1)................................ 2,000,000 2,002,080
-------------
TOTAL CORPORATE SHORT-TERM NOTES (cost $29,893,381)................... 29,896,405
-------------
MUNICIPAL BONDS -- 7.6%
Illinois Student Assistance Commission 5.63% 12/03/97(1).............. 4,000,000 4,000,000
Illinois Student Assistance Corp. 5.63% 12/03/97(1)................... 3,000,000 3,000,000
</TABLE>
---------------------
1
<PAGE> 2
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS (continued)
New Hampshire State Industrial Development Authority, Revenue 5.83%
due 3/11/98......................................................... $ 3,000,000 $ 3,000,000
Texas State General Obligation 5.63% 12/03/97(1)...................... 1,875,000 1,875,000
-------------
TOTAL MUNICIPAL BONDS (cost $11,875,000).............................. 11,875,000
-------------
TOTAL SHORT-TERM SECURITIES (cost $141,969,944)....................... 141,966,188
-------------
REPURCHASE AGREEMENT -- 8.5%
---------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 8.5%
Joint Repurchase Agreement Account (Note 3) (cost $13,341,000)........ 13,341,000 13,341,000
-------------
TOTAL INVESTMENTS --
(cost $155,310,944) 99.5% 155,307,188
Other assets less liabilities -- 0.5 812,266
------ -------------
NET ASSETS -- 100.0% $156,119,454
====== =============
</TABLE>
-----------------------------
(1) Variable rate security; maturity date reflects next reset
date; rate as of November 30, 1997.
See Notes to Financial Statements
- ---------------------
2
<PAGE> 3
- ---------------------
SUNAMERICA SERIES TRUST
GLOBAL BOND PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(DENOMINATED IN
FOREIGN BONDS & NOTES -- 65.3% LOCAL CURRENCY) VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRALIAN DOLLAR -- 0.8%
Commonwealth of Australia 10.00% 2006................................ 800,000 $ 680,638
------------
FRENCH FRANC -- 3.0%
Government of France 4.75% 2002...................................... 16,000,000 2,695,712
------------
GERMAN MARK -- 13.9%
Republic of Germany 6.00% 2007....................................... 12,700,000 7,473,808
Republic of Germany 6.25% 2024....................................... 5,500,000 3,208,307
Republic of Germany 6.50% 2005....................................... 1,200,000 727,417
Republic of Germany 8.00% 2002....................................... 1,500,000 953,757
------------
12,363,289
------------
ITALIAN LIRA -- 10.6%
Republic of Italy 6.75% 2007......................................... 4,700,000,000 2,894,991
Republic of Italy 9.50% 2001......................................... 10,000,000,000 6,520,757
------------
9,415,748
------------
JAPANESE YEN -- 7.9%
Asian Development Bank 5.00% 2003.................................... 221,000,000 2,041,165
Asian Development Bank 5.63% 2002.................................... 320,000,000 2,971,205
European Investment Bank 2.13% 2007.................................. 60,000,000 472,568
Republic of Italy 5.13% 2003......................................... 170,000,000 1,590,108
------------
7,075,046
------------
NETHERLANDS GUILDER -- 3.4%
Dutch Government 8.25% 2007.......................................... 5,000,000 3,019,172
------------
NEW ZEALAND DOLLAR -- 4.7%
Federal National Mortgage Association 7.00% 2000..................... 2,200,000 1,352,138
International Bank of Reconstruction & Development 7.00% 2000........ 2,500,000 1,526,951
New Zealand Government 8.00% 2001.................................... 2,000,000 1,273,192
------------
4,152,281
------------
POUND STERLING -- 6.5%
Treasury 8.50% 2007.................................................. 3,000,000 5,749,122
------------
SPANISH PESETA -- 3.2%
Government of Spain 10.30% 2002...................................... 360,000,000 2,894,172
------------
SWEDISH KRONA -- 4.4%
Kingdom of Sweden 6.00% 2005......................................... 10,000,000 1,280,800
Kingdom of Sweden 6.50% 2006......................................... 20,000,000 2,643,373
------------
3,924,173
------------
</TABLE>
---------------------
3
<PAGE> 4
<TABLE>
<CAPTION>
PRINCIPAL
U.S. GOVERNMENT -- 24.7% AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES DOLLAR -- 6.9%
Bayerische Landesbank Girozentrale 6.63% 2007........................ $ 3,000,000 $ 3,062,568
International Bank of Reconstruction & Development 6.63% 2006........ 3,000,000 3,103,236
------------
6,165,804
------------
TOTAL FOREIGN BONDS & NOTES (cost $58,272,077)....................... 58,135,157
------------
U.S. GOVERNMENT -- 24.7%
United States Treasury Notes 6.50% 2005.............................. 1,500,000 1,554,135
United States Treasury Notes 6.50% 2006.............................. 6,400,000 6,654,976
United States Treasury Notes 7.00% 2006.............................. 11,300,000 12,119,250
United States Treasury Notes 7.88% 2004.............................. 1,500,000 1,668,045
------------
21,996,406
------------
TOTAL U.S. GOVERNMENT (cost $21,435,889)............................. 21,996,406
------------
TOTAL INVESTMENT SECURITIES (cost $79,707,965)....................... 80,131,563
------------
SHORT-TERM SECURITIES -- 3.4%
--------------------------------------------------------------------------------------------------------
TIME DEPOSIT -- 3.4%
Cayman Island Time Deposit with State Street Bank & Trust Co.
5.63% due 12/01/97................................................. 3,047,000 3,047,000
------------
TOTAL SHORT-TERM SECURITIES (cost $3,047,000)........................ 3,047,000
------------
TOTAL INVESTMENTS --
(cost $82,754,965) 93.4% 83,178,563
Other assets less liabilities -- 6.6 5,863,960
------ ------------
NET ASSETS -- 100.0% $89,042,523
====== ============
</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>
*AUD 9,434,250 USD 7,000,591 12/18/97 $ 554,480
*AUD 1,374,648 USD 953,428 12/18/97 14,177
*DEM 4,306,461 USD 2,487,947 01/08/98 49,758
*FIM 9,593,829 DEM 3,196,345 01/09/98 12,456
*JPY 299,313,340 DEM 4,414,000 01/22/98 144,745
DEM 8,328,011 USD 4,858,816 02/23/98 112,802
DEM 189,071 USD 110,065 02/23/98 1,974
FRF 40,466,000 USD 7,027,787 02/24/98 136,913
GBP 7,310,932 USD 12,417,618 01/26/98 104,428
*USD 1,145,937 GBP 687,000 01/26/98 11,120
*USD 6,406,177 GBP 3,840,461 01/26/98 61,990
ITL 1,696,135,000 USD 994,567 02/13/98 13,127
ITL 14,759,821,130 USD 8,765,989 02/13/98 225,464
JPY 1,039,421,163 USD 8,677,136 01/22/98 458,682
JPY 124,698,113 USD 990,985 01/22/98 5,027
NLG 6,174,021 USD 3,148,605 01/14/98 32,306
NZD 9,670,059 USD 6,014,777 12/19/97 52,862
*SEK 20,327,889 USD 2,689,408 12/12/97 55,189
*SEK 2,761,000 USD 364,214 12/12/97 6,426
------------
2,053,926
------------
See Notes to Financial Statements
</TABLE>
- ---------------------
4
<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>
*USD 3,391,756 AUD 4,664,516 12/18/97 $ (204,645)
*USD 3,594,157 AUD 5,115,000 12/18/97 (99,247)
*CHF 6,128,000 DEM 7,483,209 02/27/98 (75,559)
*DEM 7,631,620 CHF 6,128,000 02/27/98 (9,035)
DEM 7,387,924 SEK 31,641,000 12/12/97 (92,827)
IEP 1,452,000 DEM 3,701,584 01/08/98 (50,266)
IEP 1,252,520 DEM 3,182,278 01/08/98 (49,484)
IEP 195,480 DEM 496,891 01/08/98 (7,590)
*DEM 3,874,023 JPY 277,996,000 01/22/98 (6,076)
DEM 5,951,784 USD 3,387,273 02/23/98 (4,569)
ESP 430,336,620 USD 2,820,215 12/11/97 (66,764)
*USD 1,826,005 FIM 9,593,829 01/08/98 (21,260)
*GBP 1,534,000 USD 2,547,844 01/26/98 (35,943)
*USD 164,768 JPY 20,150,825 01/22/98 (5,438)
*USD 2,000,687 JPY 249,435,611 01/22/98 (28,459)
*SEK 6,518,665 USD 840,034 12/12/97 (4,697)
-----------
(761,859)
-----------
Net Unrealized Appreciation.................... $ 1,292,067
===========
</TABLE>
-----------------------------
* Represents open foreign forward 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>
AUD -- Australian Dollar
DEM -- Deutsche Mark
ESP -- Spanish Peseta
FIM -- Finnish Marke
FRF -- French Franc
GBP -- Pound Sterling
ITL -- Italian Lira
IEP -- Irish Pound
JPY -- Japanese Yen
SEK -- Swedish Krona
NLG -- Netherlands Guilder
NZD -- New Zealand Dollar
USD -- United States Dollar
</TABLE>
See Notes to Financial Statements
---------------------
5
<PAGE> 6
- ---------------------
SUNAMERICA SERIES TRUST
CORPORATE BOND PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 95.0% AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 6.5%
Apparel & Textiles -- 1.8%
Collins & Aikman Corp. 11.50% 2006...................................... $ 100,000 $ 113,000
Dyersburg Corp. 9.75% 2007*............................................. 100,000 103,500
GFSI Inc. 9.63% 2007*................................................... 100,000 102,250
Pillowtex Corp. 10.00% 2006............................................. 125,000 131,875
Reliance Industries Ltd. 8.25% 2027*.................................... 500,000 517,450
Westpoint Stevens, Inc. 9.38% 2005...................................... 150,000 156,750
Automotive -- 0.3%
Aftermarket Technology Corp. 12.00% 2004................................ 75,000 82,313
Exide Corp. 10.00% 2005................................................. 50,000 52,250
Lear Corp. 9.50% 2006................................................... 50,000 54,500
Housing -- 0.2%
Falcon Building Products, Inc. zero coupon 2007(1)...................... 100,000 65,500
Syratech Corp. 11.00% 2007.............................................. 50,000 46,750
Retail -- 4.2%
Brylane Capital Corp. 10.00% 2003....................................... 250,000 265,000
Harcourt General, Inc. 7.20% 2027....................................... 750,000 749,865
Jitney Jungle Stores of America, Inc. 10.38% 2007*...................... 50,000 51,750
Leslie's Poolmart, Inc. 10.38% 2004*.................................... 50,000 51,625
Penney (J.C.) Co., Inc. 7.65% 2016...................................... 500,000 537,315
ShopKo Stores, Inc. 9.25% 2022.......................................... 750,000 887,962
Stater Brothers Holdings, Inc. 9.00% 2004*.............................. 100,000 104,000
------------
4,073,655
------------
CONSUMER STAPLES -- 2.9%
Food, Beverage & Tobacco -- 1.9%
Ameriserve Food Distribution, Inc. 10.13% 2007*......................... 100,000 104,000
Aurora Foods Inc. 9.88% 2007............................................ 50,000 52,125
Carr Gottstein Foods Co. 12.00% 2005.................................... 100,000 110,500
Di Giorgio Corp. 10.00% 2007............................................ 100,000 99,000
International Home Foods, Inc. 10.38% 2006.............................. 100,000 106,000
Philip Morris Cos, Inc. 7.75% 2027...................................... 500,000 531,325
Ralphs Grocery Co. 10.45% 2004.......................................... 150,000 168,938
Household Products -- 1.0%
NBTY, Inc. 8.63% 2007*.................................................. 100,000 97,250
Playtex Family Products Corp. 9.00% 2003................................ 100,000 101,000
Polymer Group, Inc. 9.00% 2007.......................................... 150,000 148,125
Renaissance Cosmetics 11.75% 2004*...................................... 50,000 45,500
Revlon Consumer Products Corp. 10.50% 2003.............................. 100,000 105,500
Simmons Co. 10.75% 2006................................................. 100,000 105,250
------------
1,774,513
------------
ENERGY -- 6.4%
Energy Services -- 2.2%
Coastal Corp. 9.75% 2003................................................ 250,000 286,893
Dailey International, Inc. 9.75% 2007*.................................. 100,000 104,500
Enersis SA 7.40% 2016................................................... 600,000 596,058
Pride Petroleum Services, Inc. 9.38% 2007............................... 100,000 107,000
Tosco Corp. 7.00% 2000.................................................. 250,000 253,835
</TABLE>
- ---------------------
6
<PAGE> 7
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY (continued)
Energy Sources -- 4.2%
Abraxas Petroleum Corp. 11.50% 2004..................................... $ 75,000 $ 81,000
Anker Coal Group, Inc. 9.75% 2007*...................................... 100,000 100,750
Clark Oil & Refining Corp. 10.50% 2001.................................. 750,000 781,875
Di Industries, Inc. 8.88% 2007.......................................... 50,000 51,500
Forcenergy, Inc. 9.50% 2006............................................. 50,000 52,625
Husky Oil Ltd. 7.13% 2006............................................... 500,000 502,135
Petsec Energy, Inc. 9.50% 2007*......................................... 50,000 51,688
Sun Co., Inc. 9.00% 2024................................................ 750,000 889,147
United Meridian Corp. 10.38% 2005....................................... 75,000 81,937
XCL Ltd. 13.50% 2004(1)(2).............................................. 50,000 60,000
------------
4,000,943
------------
FINANCE -- 23.9%
Banks -- 6.1%
ABN Amro Holdings NV 7.30% 2026......................................... 500,000 503,580
African Development Bank 6.88% 2015..................................... 500,000 511,980
Continental Bank NA 12.50% 2001(1)...................................... 300,000 353,535
First Nationwide Holdings, Inc. 10.63% 2003............................. 200,000 224,500
Firstbank Puerto Rico 7.63% 2005........................................ 750,000 769,575
National Bank of Canada 8.13% 2004...................................... 750,000 807,653
Security Pacific Corp. 11.50% 2000...................................... 275,000 312,451
Signet Banking Corp. 9.63% 1999......................................... 300,000 313,800
Financial Services -- 14.2%
Allmerica Financial Corp. 7.63% 2025.................................... 500,000 523,590
American General Corp. 9.63% 2018....................................... 500,000 525,180
Arvin Capital I 9.50% 2027.............................................. 500,000 548,780
Case Equipment Loan Trust 7.30% 2002.................................... 82,742 83,263
Chevy Chase Auto Receivables 5.80% 2002................................. 66,858 66,649
CNA Financial Corp. 7.25% 2023.......................................... 500,000 493,620
ContiFinancial Corp. 8.38% 2003......................................... 100,000 103,750
Continental Corp. 8.25% 1999............................................ 100,000 102,465
Continental Global Group, Inc. 11.00% 2007.............................. 150,000 161,250
Delphi Funding L L C 9.31% 2027......................................... 800,000 888,104
Ford Capital BV 9.38% 2001.............................................. 600,000 654,864
Ford Capital BV 9.50% 2001.............................................. 200,000 219,674
General Motors Acceptance Corp. 5.63% 2001.............................. 300,000 293,751
Green Tree Financial Corp. 10.25% 2002.................................. 450,000 510,741
Green Tree Financial Corp. 6.50% 2002................................... 300,000 300,315
Hutchinson Whampoa Finance Ltd. 7.50% 2027*............................. 500,000 472,355
Lehman Brothers, Inc. 7.38% 2007........................................ 575,000 591,664
Navistar Financial 6.55% 2001........................................... 77,353 77,643
Outsourcing Solutions, Inc. 11.00% 2006*................................ 50,000 55,500
Premier Auto Trust 4.90% 1998........................................... 12,301 12,266
Premier Auto Trust 7.90% 1999........................................... 5,933 5,933
Reinsurance Group America, Inc. 7.25% 2006*............................. 500,000 517,955
Resolution Funding Corp. zero coupon 2021............................... 640,000 150,982
Salomon, Inc. 7.20% 2004................................................ 525,000 540,435
Susa Partnership LP 8.20% 2017.......................................... 250,000 271,478
Swedish Export Credit Corp. 9.88% 2038.................................. 500,000 524,760
Tanger Properties Ltd. 8.75% 2001....................................... 85,000 87,444
Trizec Finance Corp., Ltd. 10.88% 2005.................................. 67,000 75,207
Insurance -- 3.6%
Conseco Inc. 10.50% 2004................................................ 750,000 894,135
Life Re Capital Trust I 8.72% 2027*..................................... 500,000 536,290
</TABLE>
---------------------
7
<PAGE> 8
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance (continued)
USF & G Capital II 8.47% 2027........................................... $ 500,000 $ 526,875
USF & G Capital III 8.31% 2046*......................................... 250,000 266,750
------------
14,880,742
------------
HEALTHCARE -- 0.9%
Health Services -- 0.7%
Genesis Health Ventures, Inc. 9.25% 2006................................ 50,000.... 50,625
Genesis Health Ventures, Inc. 9.75% 2005................................ 50,000 51,625
Tenet Healthcare Corp. 8.00% 2005....................................... 250,000 252,500
Tenet Healthcare Corp. 10.13% 2005...................................... 100,000 108,500
Medical Products & Services -- 0.2%
Dade International, Inc. 11.13% 2006*................................... 100,000 111,750
------------
575,000
------------
INDUSTRIAL & COMMERCIAL -- 8.8%
Business Services -- 3.9%
Allied Waste Industries, Inc. zero coupon 2007*......................... 50,000 34,375
Allied Waste North America, Inc. 10.25% 2006*........................... 100,000 109,000
Boston University 7.63% 2097............................................ 500,000 540,675
Coinmach Corp. 11.75% 2005*............................................. 50,000 55,125
Glenoit Corp. 11.00% 2007*.............................................. 50,000 53,625
Knoll, Inc. 10.88% 2006................................................. 65,000 72,150
National Equipment Services, Inc. 10.00% 2004*.......................... 50,000 49,188
Roller Bearing Co. America, Inc. 9.63% 2007*............................ 50,000 50,625
Statia Terminals International 11.75% 2003.............................. 50,000 53,250
Tokheim Corp. 11.50% 2006............................................... 50,000 57,000
United Stationers Supply Co. 12.75% 2005................................ 33,000 36,713
USA Waste Service, Inc. 7.13% 2007...................................... 750,000 767,820
Waste Management, Inc. 8.75% 2018....................................... 500,000 537,980
Electrical Equipment -- 0.1%
Amphenol Corp. 9.88% 2007............................................... 50,000 52,625
Machinery -- 0.5%
Alvey Systems, Inc. 11.38% 2003......................................... 100,000 106,000
CLARK Material Handling Co. 10.75% 2006................................. 100,000 105,500
Neenah Corp. 11.13% 2007*............................................... 50,000 54,124
Werner Holdings Co., Inc. 10.00% 2007*.................................. 50,000 50,875
Multi-Industry -- 1.1%
EnviroSource, Inc. 9.75% 2003........................................... 50,000 50,500
Four M Corp. 12.00% 2006................................................ 50,000 53,250
News America Holdings, Inc. 10.13% 2012................................. 500,000 579,010
Transportation -- 3.2%
Allied Holdings, Inc. 8.63% 2007*....................................... 50,000 51,125
Ameritruck Distribution Corp. 12.25% 2005............................... 100,000 104,000
Chemical Leaman Corp. 10.38% 2005....................................... 50,000 51,875
Continental Airlines, Inc. 6.90% 2018(3)................................ 500,000 503,750
Gearbulk Holdings Ltd. 11.25% 2004...................................... 100,000 111,000
Johnstown America Industries, Inc. 11.75% 2005*......................... 50,000 54,125
Stena AB 8.75% 2007..................................................... 50,000 49,875
Stena AB 10.50% 2005.................................................... 100,000 108,125
Transport Ocean Container Corp. 12.25% 2004............................. 850,000 993,437
------------
5,496,722
------------
</TABLE>
- ---------------------
8
<PAGE> 9
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 13.1%
Broadcasting & Media -- 11.4%
Acme Television LLC zero coupon 2004*(4)................................ $75,000 $ 55,125
Affiliated Newspapers Investments, Inc. zero coupon 2006(1)(4).......... 100,000 91,500
Bell Cablemedia PLC zero coupon 2004(4)................................. 75,000 69,675
Cablevision Systems Corp. 9.25% 2005.................................... 150,000 157,500
Chancellor Media Corp. 8.75% 2007*...................................... 50,000 51,000
Chancellor Media Corp. 9.38% 2004....................................... 100,000 104,250
Comcast Cable Communications 8.50% 2027*................................ 500,000 569,370
Comcast Cellular Holdings, Inc. 9.50% 2007.............................. 50,000 51,750
Comcast Corp. 9.38% 2005................................................ 100,000 106,967
Comcast UK Cable Partners Ltd. zero coupon 2007(4)...................... 175,000 139,563
Continental Cablevision, Inc. 9.50% 2013................................ 750,000 863,107
Dialog Corp. 11.00% 2007*............................................... 75,000 75,938
Diamond Cable PLC zero coupon 2007*(4).................................. 100,000 65,500
Echostar Satellite Broadcasting Corp. zero coupon 2004(4)............... 150,000 123,750
Fox/Liberty Networks LLC zero coupon 2007*(4)........................... 200,000 125,500
Garden State Newspapers, Inc. 8.75% 2009*............................... 50,000 49,875
Heritage Media Corp. 8.75% 2006*........................................ 100,000 106,375
Hollinger International Publishing, Inc. 9.25% 2007..................... 75,000 77,250
Katz Media Corp. 10.50% 2007............................................ 100,000 110,250
Lenfest Communications, Inc. 8.38% 2005................................. 100,000 100,500
Millicom International Cellular zero coupon 2006(4)..................... 100,000 73,000
Nextel Communications, Inc. zero coupon 2004(4)......................... 125,000 107,812
Outdoor Systems, Inc. 8.88% 2007........................................ 100,000 103,250
Paging Network, Inc. 10.00% 2008........................................ 100,000 102,750
Paramount Communications, Inc. 8.25% 2022............................... 500,000 497,915
Rogers Cablesystems Ltd. 10.00% 2007.................................... 100,000 109,000
Rogers Cablesystems Ltd.Class B 10.00% 2005............................. 50,000 54,750
Sci Television, Inc. 11.00% 2005........................................ 475,000 492,960
SFX Broadcasting, Inc. 10.75% 2006...................................... 50,000 54,500
Sinclair Broadcast Group, Inc. 9.00% 2007*.............................. 50,000 50,187
Sinclair Broadcast Group, Inc. 10.00% 2005.............................. 50,000 52,750
Sullivan Braodcasting 10.25% 2005....................................... 100,000 106,750
Telesystem International Wireless, Inc. zero coupon 2007*(4)............ 100,000 59,875
Telewest Communications PLC zero coupon 2007(4)......................... 300,000 228,750
Teligent, Inc. 11.50% 2007.............................................. 50,000 50,375
TKR Cable, Inc. 10.50% 2007............................................. 750,000 840,068
UIH Australia Pacific, Inc. zero coupon 2006(4)......................... 100,000 65,000
Valassis Inserts, Inc. 9.38% 1999....................................... 750,000 769,912
Viacom, Inc. 8.00% 2006................................................. 200,000 198,548
Entertainment Products -- 0.1%
Cobblestone Golf Group, Inc. 11.50% 2003................................ 50,000 53,750
Leisure & Tourism -- 1.6%
AMF Group, Inc., zero coupon 2006(4).................................... 122,000 92,720
Courtyard Marriott Ltd. 10.75% 2008..................................... 50,000 54,438
Livent, Inc. 9.38% 2004*................................................ 50,000 49,625
Premier Parks, Inc. 12.00% 2003......................................... 100,000 110,875
Six Flags Theme Parks, Inc. zero coupon 2005(4)......................... 125,000 132,812
Southwest Airlines Co. 7.38% 2027....................................... 500,000 522,460
------------
8,129,577
------------
INFORMATION TECHNOLOGY -- 5.8%
Communication Equipment -- 0.1%
Elgin National Industries, Inc. 11.00% 2007*............................ 75,000 76,500
Computers & Business Equipment -- 0.9%
Harris Corp. 10.38% 2018................................................ 500,000 541,205
</TABLE>
---------------------
9
<PAGE> 10
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Electronics -- 1.7%
Advanced Micro Devices, Inc. 11.00% 2003................................ $ 50,000 $ 53,000
Decisionone Corp. 9.75% 2007*........................................... 50,000 52,250
Fairchild Semiconductor Corp. 10.13% 2007............................... 100,000 104,500
Figgie International, Inc. Delaware 9.88% 1999.......................... 750,000 781,875
Viasystems Group, Inc. 9.75% 2007*...................................... 50,000 51,625
Telecommunications -- 3.1%
American Communications Services, Inc. 13.75% 2007*..................... 50,000 57,375
Anixter, Inc. 8.00% 2003................................................ 500,000 523,725
Brooks Fiber Properties, Inc. zero coupon 2006(4)....................... 100,000 82,125
Brooks Fiber Properties, Inc. zero coupon 2006(4)....................... 100,000 79,250
Call-Net Enterprises, Inc. zero coupon 2007(4).......................... 100,000 67,125
Charter Communications South East LP 11.25% 2006........................ 50,000 55,500
Frontiervision Holdings LP zero coupon 2007*(4)......................... 100,000 69,750
Hermes Europe Railtel BV 11.50% 2007*................................... 50,000 54,375
Highwaymaster Communciations 13.75% 2005*(1)............................ 50,000 50,250
Intermedia Communications, Inc. zero coupon 2006(4)..................... 100,000 77,500
Intermedia Communications, Inc. zero coupon 2007(4)..................... 50,000 34,250
International CableTel, Inc. zero coupon 2006(4)........................ 150,000 113,250
Mcleodusa, Inc. zero coupon 2007(4)..................................... 150,000 102,750
Metronet Communications Corp. 12.00% 2007(1)............................ 50,000 56,875
PanAmSat Corp. 12.75% 2005.............................................. 119,000 144,213
Qwest Communications International, Inc. 10.88% 2007*................... 100,000 112,500
RCN Corp. 11.13% 2007*(4)............................................... 50,000 28,938
Teleport Communications Group zero coupon 2007(4)....................... 150,000 118,875
Vanguard Cellular Systems, Inc. 9.38% 2006.............................. 100,000 103,000
------------
3,592,581
------------
MATERIALS -- 9.8%
Chemicals -- 0.2%
Climachem, Inc. 10.75% 2007............................................. 50,000 50,250
ISP Holdings, Inc. 9.75% 2002........................................... 50,000 52,625
Forest Products -- 4.2%
Buckeye Cellulose Corp. 9.25% 2008...................................... 125,000 131,875
Donohue Forest Products, Inc. 7.63% 2007................................ 750,000 787,500
Pope & Talbot, Inc. 8.38% 2013.......................................... 250,000 252,295
Repap Wisconsin, Inc. 9.25% 2002........................................ 500,000 535,570
Repap Wisconsin, Inc. 9.88% 2006........................................ 750,000 824,737
Stone Container Corp. 11.50% 2004....................................... 50,000 54,000
Metals & Minerals -- 5.4%
Acme Metals, Inc. 13.50% 2004(2)........................................ 50,000 58,000
Barrick Gold Finance, Inc. 7.50% 2007................................... 750,000 785,513
Echo Bay Mines Ltd. 11.00% 2027......................................... 50,000 38,625
Euramax International PLC 11.25% 2006................................... 50,000 53,875
GS Technologies, Inc. 12.25% 2005....................................... 100,000 111,000
Inco Ltd. 9.60% 2022.................................................... 750,000 858,593
MMI Products, Inc. 11.25% 2007*......................................... 50,000 53,875
Placer Dome, Inc. 8.50% 2045............................................ 750,000 762,187
Ryderson Tull, Inc. 9.13% 2006.......................................... 100,000 107,000
Southdown, Inc. 10.00% 2006............................................. 500,000 555,000
------------
6,072,520
------------
</TABLE>
- ---------------------
10
<PAGE> 11
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS -- 1.2%
Municipal Bonds -- 1.2%
Atlanta & Fulton County Georgia Recreation 7.00% 2028................... $ 500,000 $ 495,615
Mc Keesport Pennsylvania 7.30% 2020..................................... 250,000 254,253
------------
749,868
------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 2.9%
Foreign Government -- 2.9%
Province of Quebec 13.25% 2014.......................................... 890,000 1,030,326
Republic of Columbia 7.25% 2003......................................... 250,000 243,445
Republic of South Africa 9.63% 1999..................................... 500,000 522,825
------------
1,796,596
------------
REAL ESTATE -- 1.6%
Real Estate Companies -- 0.1%
AEI Holdings, Inc. 10.00% 2007*......................................... 50,000 50,750
Real Estate Investment Trusts -- 1.5%
Chelsea GCA Realty, Inc. 7.75% 2001..................................... 150,000 154,556
Price REIT, Inc. 7.50% 2006............................................. 750,000 784,170
------------
989,476
------------
U.S. GOVERNMENT & AGENCIES -- 8.5%
U.S. Government & Agencies -- 8.5%
Federal National Mortgage Association 6.50% 2011........................ 1,365,477 1,362,910
Federal National Mortgage Association 8.50% 2005........................ 750,000 785,153
Government National Mortgage Association 8.00% 2026..................... 1,392,271 1,439,691
United States Treasury Bonds 6.00% 2026................................. 1,750,000 1,722,385
------------
5,310,139
------------
UTILITIES -- 2.7%
Electric Utilities -- 2.7%
California Energy, Inc. 10.25% 2004(2).................................. 750,000 819,450
Israel Electric Corp. Ltd. 7.88% 2026*.................................. 350,000 368,939
Tenaga Nasional Berhad 7.50% 2096*...................................... 500,000 519,195
------------
1,707,584
------------
TOTAL BONDS & NOTES (cost $57,362,410).................................. 59,149,916
------------
<CAPTION>
COMMON STOCK -- 0.0% SHARES
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 0.0%
Broadcasting & Media -- 0.0%
Nextel Communications, Inc., Class A+ (cost $2,485)..................... 154 3,889
------------
PREFERRED STOCK -- 1.9%
---------------------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 0.9%
Broadcasting & Media -- 0.9%
American Radio Systems Corp. Series B 11.38%............................ 1,053 124,219
Capstar Broadcasting Partners 12.00%.................................... 500 56,875
Pegasus Communications Corp. 12.75%..................................... 105 117,094
Primedia, Inc. 9.25%*................................................... 1,250 125,937
SFX Broadcasting, Inc. 12.63%........................................... 500 59,250
Sinclair Capital 11.63%*................................................ 500 55,375
------------
538,750
------------
</TABLE>
---------------------
11
<PAGE> 12
<TABLE>
<CAPTION>
PREFERRED STOCK (continued) SHARES VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY -- 0.1%
Computers & Business Equipment -- 0.1%
Microsoft Corp. 2.20%................................................... 1,000 $ 88,562
REAL ESTATE -- 0.9%
Real Estate Investment Trusts -- 0.9%
Crown American Realty Trust 11.00%...................................... 1,000 52,875
Highwood Properties Inc. 8.63%.......................................... 500 532,875
------------
585,750
------------
TOTAL PREFERRED STOCK (cost $1,125,654)................................. 1,213,062
------------
WARRANTS -- 0.0%+
---------------------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 0.0%
Broadcasting & Media -- 0.0%
Australis Holdings Property Ltd......................................... 50 0
Pegasus Communications Corp............................................. 100 1,700
------------
1,700
------------
INFORMATION TECHNOLOGY -- 0.0%
Telecommunications -- 0.0%
Highwaymaster Communications, Inc....................................... 50 88
------------
TOTAL WARRANTS (cost $1,416)............................................ 1,788
------------
TOTAL INVESTMENT SECURITIES (cost 58,491,965)........................... 60,368,655
------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 2.1% AMOUNT
---------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 0.6%
Arkla, Inc. 9.20% due 12/18/97.......................................... $ 65,000 65,075
Time Warner, Inc. 7.45% due 2/1/98...................................... 290,000 290,499
------------
355,574
------------
TIME DEPOSIT -- 1.5%
Cayman Island Time Deposit with State Street Bank & Trust Co.
3.00% due 12/1/97..................................................... 932,000 932,000
------------
TOTAL SHORT-TERM SECURITIES (cost $1,286,580)........................... 1,287,574
------------
TOTAL INVESTMENTS --
(cost $59,778,545) 99.0% 61,656,229
Other assets less liabilities -- 1.0 615,389
------ ------------
NET ASSETS -- 100.0% $62,271,618
====== ============
</TABLE>
-----------------------------
* Resale restricted to qualified institutional buyers
+ Non-income producing securities
(1) Consists of more than one class of securities traded together
as a unit; generally bonds with attached stocks or warrants
(2) Variable rate security; rate as of November 30, 1997
(3) Fair valued security; see Note 2
(4) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date
See Notes to Financial Statements
- ---------------------
12
<PAGE> 13
- ---------------------
SUNAMERICA SERIES TRUST
HIGH-YIELD BOND PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 86.6% AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 7.8%
Apparel & Textiles -- 3.0%
Dominion Textile USA, Inc. 8.88% 2003................................. $ 2,900,000 $ 2,929,000
Dominion Textile USA, Inc. 9.25% 2006................................. 1,000,000 1,010,000
J Crew Operating Corp. 10.38% 2007*................................... 2,000,000 1,990,000
Housing -- 1.2%
Lifestyle Furnishings International Ltd. 10.88% 2006.................. 2,000,000 2,230,000
Retail -- 3.6%
Commemorative Brands, Inc. 11.00% 2007................................ 1,500,000 1,511,250
Electronic Retailing Systems International, Inc. zero coupon
2004(1)............................................................. 1,500,000 1,035,000
Eye Care Centers of America, Inc. 12.00% 2003......................... 2,000,000 2,155,000
Jitney Jungle Stores of America, Inc. 12.00% 2006..................... 1,500,000 1,695,000
Jumbo Sports, Inc. 4.25% 2000......................................... 1,000,000 641,250
-------------
15,196,500
-------------
CONSUMER STAPLES -- 4.5%
Food, Beverage & Tobacco -- 1.8%
Specialty Foods Acquisition Corp. Series B zero coupon 2005(1)........ 1,500,000 628,125
Specialty Foods Corp. Series B 11.13% 2002............................ 2,850,000 2,864,250
Household Products -- 2.7%
Drypers Corp. Series B 10.25% 2007.................................... 1,000,000 1,010,000
French Fragrances, Inc. Series B 10.38% 2007.......................... 2,250,000 2,362,500
Polymer Group Inc. Series B 9.00% 2007................................ 2,000,000 1,975,000
-------------
8,839,875
-------------
ENERGY -- 4.8%
Energy Services -- 0.3%
DeepTech International, Inc. 12.00% 2000.............................. 500,000 531,250
Energy Sources -- 4.5%
Clark (R&M) Holdings, Inc. 8.38% 2007*................................ 2,250,000 2,250,000
ICO, Inc. Series B 10.38% 2007........................................ 1,250,000 1,340,625
Southwest Royal Ties, Inc. 10.50% 2004*............................... 2,250,000 2,244,375
Statia Terms International Series B 11.75% 2003*...................... 2,000,000 2,130,000
Transamerican Energy Corp. zero coupon 2002*(1)....................... 1,000,000 815,000
-------------
9,311,250
-------------
FINANCE -- 3.8%
Banks -- 0.7%
Western Financial Savings Bank 8.88% 2007............................. 1,500,000 1,436,250
Financial Services -- 3.1%
Bankunited Capital Trust Preferred, Series A 10.25% 2026*............. 2,000,000 2,065,000
Crown Castle International Corp. 10.63% 2007*......................... 500,000 301,875
Dollar Financial Group, Inc. Series A 10.88% 2006..................... 2,000,000 2,140,000
Homeside, Inc. Series B 11.25% 2003................................... 1,299,000 1,545,810
-------------
7,488,935
-------------
</TABLE>
---------------------
13
<PAGE> 14
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 4.9%
Health Services -- 4.9%
Abbey Healthcare Group, Inc. 9.50% 2002............................... $ 2,000,000 $ 2,070,000
Integrated Health Services, Inc. 9.25% 2008*.......................... 1,000,000 997,500
Signature Brands USA, Inc. 13.00% 2002................................ 1,995,000 2,204,475
Tenet Healthcare Corp. 10.13% 2005.................................... 4,000,000 4,340,000
-------------
9,611,975
-------------
INDUSTRIAL & COMMERCIAL -- 8.5%
Aerospace & Military Technology -- 2.1%
Interlake Corp. 12.13% 2002........................................... 2,000,000 2,090,000
L 3 Communications Corp. 10.38% 2007.................................. 2,000,000 2,160,000
Business Services -- 1.6%
Huntsman Corp. 9.09% 2007*(5)......................................... 1,500,000 1,571,250
W. R. Carpenter North America, Inc. 10.63% 2007*...................... 1,500,000 1,563,750
Multi-Industry -- 1.1%
Golden Ocean Group Ltd. 10.00% 2001(2)................................ 2,500,000 2,150,000
Transportation -- 3.7%
Pegasus Shipping Hellas Ltd. 11.88% 2004*............................. 1,500,000 1,466,250
Stena AB 8.75% 2007................................................... 2,000,000 1,995,000
Stena AB 10.50% 2005.................................................. 2,000,000 2,150,000
Travelcenters America, Inc. 10.25% 2007............................... 1,500,000 1,575,000
-------------
16,721,250
-------------
INFORMATION & ENTERTAINMENT -- 17.2%
Broadcasting & Media -- 8.2%
Benedek Communications Corp. zero coupon 2006(1)...................... 1,000,000 735,000
Busse Broadcasting Corp. 11.63% 2000.................................. 1,000,000 1,068,750
Falcon Holding Group, L.P. Series B 11.00% 2003(4).................... 1,000,000 1,050,000
Fox Kids Worldwide, Inc. 9.25% 2007*.................................. 2,000,000 1,905,000
Midcom Communications, Inc. 8.25% 2003................................ 1,000,000 160,000
Nextel Communications, Inc. zero coupon 2004(1)....................... 2,500,000 2,156,250
Nextel Communications, Inc. 10.65% 2007*.............................. 1,000,000 607,500
Peoples Choice TV Corp. zero coupon 2004(1)........................... 1,500,000 555,000
Peoples Choice TV Corp. zero coupon 2004(1)(2)........................ 2,000,000 780,000
Radio One, Inc. Series B 7.00% 2004................................... 1,000,000 965,000
Source Media, Inc. 12.00% 2004*....................................... 1,500,000 1,481,250
Spanish Broadcasting Systems, Inc. 12.50% 2002........................ 2,250,000 2,576,250
Young Broadcasting, Inc. Series B 8.75% 2007.......................... 2,000,000 1,950,000
Cable -- 7.1%
Australis Holdings Property Ltd. zero coupon 2002(1).................. 1,750,000 822,483
Comcast UK Cable Partners Ltd. zero coupon 2007(1).................... 1,000,000 797,500
Diamond Cable Communications PLC zero coupon 2007(1).................. 2,000,000 1,310,000
Echostar DBS Corp. 12.50% 2002*....................................... 1,000,000 1,063,750
Echostar Satellite Broadcasting Corp. zero coupon 2004(1)............. 4,250,000 3,506,250
International CableTel, Inc. 7.00% 2008............................... 500,000 490,000
UIH Australia Pacific, Inc. Series B zero coupon 2006(1).............. 1,000,000 650,000
United International Holdings, Inc. zero coupon 1999.................. 5,250,000 4,252,500
Wavetek Corp. 10.13% 2007(3).......................................... 1,000,000 1,025,000
Gaming -- 0.8%
California Hotel Finance Corp. 11.00% 2002............................ 1,500,000 1,561,875
Leisure & Tourism -- 1.1%
HMH Properties, Inc. 9.50% 2005....................................... 2,000,000 2,105,000
-------------
33,574,358
-------------
</TABLE>
- ---------------------
14
<PAGE> 15
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY -- 23.8%
Cellular -- 8.3%
Cellular Communications International, Inc. zero coupon 2000.......... $ 3,000,000 $ 2,355,000
Centennial Cellular Corp. 8.88% 2001.................................. 2,000,000 2,030,000
Comcast Cellular Holdings, Inc. Series B 9.50% 2007................... 1,500,000 1,552,500
Globalstar L.P. 10.75% 2004*.......................................... 1,500,000 1,458,750
International Wireless Communication zero coupon 2001(3).............. 1,250,000 662,500
Microcell Telecommunications, Inc. Series B zero coupon 2006(1)....... 3,000,000 1,920,000
Occidente Y Caribe Celular SA Series B zero coupon 2004(1)............ 2,000,000 1,519,980
Omnipoint Corp. Series A 11.63% 2006.................................. 2,750,000 2,915,000
Orbcomm Global L.P. 14.00% 2004....................................... 1,750,000 1,859,375
Computers & Business Equipment -- 1.4%
Verio, Inc. 13.50% 2004............................................... 2,250,000 2,700,000
Electronics -- 3.2%
Advanced Micro Devices, Inc. 11.00% 2003.............................. 3,000,000 3,180,000
Details, Inc. 10.00% 2005*............................................ 1,000,000 1,012,500
Hawk Corp. Series B 10.25% 2003....................................... 2,000,000 2,120,000
Telecommunications -- 10.9%
Colt Telecommunications Group PLC zero coupon 2006(1)(2).............. 2,000,000 1,540,000
Econophone, Inc. 13.50% 2007(2)....................................... 1,000,000 1,065,000
GST USA, Inc. zero coupon 2005(1)..................................... 2,500,000 1,815,625
Hermes Europe Railtel BV 11.50% 2007*................................. 1,500,000 1,631,250
International Logistics Ltd. 9.75% 2007*.............................. 2,000,000 1,985,000
Ionica PLC zero coupon 2007(1)(2)..................................... 5,750,000 2,350,312
IXC Communications, Inc. Series B 12.50% 2005......................... 2,000,000 2,280,000
NTL, Inc. Series B 10.00% 2007........................................ 1,500,000 1,571,250
Poland Telecom Fin BV 14.00% 2007..................................... 1,000,000 1,025,000
RCN Corp. 10.00% 2007*................................................ 1,500,000 1,500,000
Transtel Pass Through Trust 12.50% 2007*.............................. 1,500,000 1,417,500
USN Communications, Inc. 14.63% 2004(2)*.............................. 2,250,000 1,687,500
Viatel, Inc. 15.00% 2005(1)........................................... 2,000,000 1,505,000
-------------
46,659,042
-------------
MATERIALS -- 8.8%
Chemicals -- 1.5%
NL Industries, Inc. 11.75% 2003....................................... 2,595,000 2,854,500
Forest Products -- 4.8%
Ainsworth Lumber Ltd. 12.50% 2007*(4)................................. 1,750,000 1,763,125
American Pad & Paper Co. Series B 13.00% 2005......................... 650,000 763,750
Doman Industries Ltd. 8.75% 2004...................................... 3,000,000 2,962,500
Florida Coast Paper Co. LLC Series B 12.75% 2003...................... 2,250,000 2,407,500
Stone Container Corp. 11.88% 1998..................................... 1,500,000 1,567,500
Metals & Minerals -- 2.5%
Acme Metals, Inc. 12.50% 2002......................................... 1,500,000 1,650,000
GS Technologies Operating, Inc. 12.00% 2004........................... 1,500,000 1,650,000
Renco Metals, Inc. 11.50% 2003........................................ 1,500,000 1,590,000
-------------
17,208,875
-------------
UTILITIES -- 2.5%
Telephone -- 2.5%
BTI Telecom Corp. 10.50% 2007*........................................ 1,500,000 1,503,750
Iridium Capital Corp., Series A 13.00% 2005........................... 1,250,000 1,293,750
</TABLE>
---------------------
15
<PAGE> 16
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Telephone (continued)
MGC Communications, Inc. 13.00% 2004*(2).............................. $ 1,000,000 $ 997,500
Primus Telecommunications Group 11.75% 2004........................... 1,000,000 1,065,000
-------------
4,860,000
-------------
TOTAL BONDS & NOTES (cost $168,428,520)............................... 169,472,060
-------------
COMMON STOCK -- 0.0% SHARES
---------------------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 0.0%
Gaming -- 0.0%
Capital Gaming International, Inc.+ (cost $155,541)................... 103 1
-------------
PREFERRED STOCK -- 8.2%
---------------------------------------------------------------------------------------------------
HEALTHCARE -- 1.2%
Health Services -- 1.2%
Fresenius Medical Care Capital Trust 9.00%............................ 2,250 2,351,250
-------------
INFORMATION & ENTERTAINMENT -- 3.4%
Broadcasting & Media -- 2.1%
Benedek Communications Corp. Series C 15.00%(3)....................... 11,500 1,437,500
Echostar Communications Corp. Series C 6.75%.......................... 33,000 1,633,500
Echostar Communications Corp. 12.13%*................................. 1,000 1,030,000
Cable -- 1.3%
Cablevision Systems Corp. 11.125%..................................... 22,500 2,565,000
-------------
6,666,000
-------------
INFORMATION TECHNOLOGY -- 2.9%
Telecommunications -- 2.9%
ICG Holdings, Inc. 14.00%............................................. 1,529 1,758,063
Intermedia Communications, Inc. 13.50%(4)............................. 1,216 1,447,040
Intermedia Communications, Inc. 14.00%(3)............................. 40,000 990,000
IXC Communications, Inc. 12.50%*(4)................................... 250 286,250
NTL, Inc. Series B 13.00%............................................. 1,000 1,146,250
-------------
5,627,603
-------------
MATERIALS -- 0.7%
Forest Products -- 0.7%
SDW Holdings Corp. 15.00%(3)*......................................... 37,000 1,382,875
-------------
TOTAL PREFERRED STOCK (cost $15,292,106).............................. 16,027,728
-------------
WARRANTS -- 0.4%+
---------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 0.1%
Retail -- 0.1%
Electronic Retailing Systems International, Inc. 02/01/04*............ 1,500 90,000
-------------
INDUSTRIAL & COMMERCIAL -- 0.0%
Multi-Industry -- 0.0%
Golden Ocean Group Ltd. 08/31/01...................................... 2,500 25
-------------
</TABLE>
- ---------------------
16
<PAGE> 17
<TABLE>
<CAPTION>
WARRANTS (continued) SHARES VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 0.0%
Broadcasting & Media -- 0.0%
Benedek Communications Corp. 07/01/07................................. 12,500 $ 18,750
Cable -- 0.0%
Australis Holdings Property Ltd. 10/30/01*............................ 1,750 0
United International Holdings, Inc. 11/15/99(3)....................... 1,750 13,125
Gaming -- 0.0%
Fitzgerald South, Inc. 03/15/99*...................................... 2,000 20
-------------
31,895
-------------
INFORMATION TECHNOLOGY -- 0.3%
Cellular -- 0.1%
Cellular Communications International, Inc. 8/15/03................... 2,000 20
Clearnet Communications, Inc. 9/15/05................................. 3,300 19,800
International Wireless Communications Holdings, Inc. 8/15/01(3)*...... 1,250 0
Microcell Telecommunications 06/15/06(3).............................. 8,000 108,000
Microcell Telecommunications 06/15/06*................................ 8,000 0
Occidente Y Caribe Celular SA 03/15/04*............................... 8,000 0
Telecommunications -- 0.2%
Colt Telecommunications Group PLC..................................... 2,000 20
Hyperion Telecommunications, Inc. 04/01/01*........................... 3,000 179,997
Intermedia Communications, Inc. 06/01/00(3)*.......................... 2,500 187,500
Ionica PLC 08/15/06................................................... 1,000 100,000
-------------
595,337
-------------
UTILITIES -- 0.0%
Telephone -- 0.0%
Primus Telecommunications Group 08/01/04(3)........................... 1,000 10,000
-------------
TOTAL WARRANTS (cost $685,723)........................................ 727,257
-------------
TOTAL INVESTMENT SECURITIES (cost $184,561,890)....................... 186,227,046
-------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 5.9% AMOUNT
---------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 5.9%
Joint Repurchase Agreement Account (Note 3)
(cost $11,659,000).................................................. $11,659,000 11,659,000
-------------
TOTAL INVESTMENTS --
(cost $196,220,890) 101.1% 197,886,046
Liabilities in excess of other assets -- (1.1) (2,247,040)
------ -------------
NET ASSETS -- 100.0% $195,639,006
====== =============
</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
(4) PIK Bond -- Payment-in-Kind bond
(5) Variable rate security; rate as of November 30, 1997
See Notes to Financial Statements
---------------------
17
<PAGE> 18
- ---------------------
SUNAMERICA SERIES TRUST
WORLDWIDE HIGH INCOME
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 94.1% AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 1.2%
Retail -- 1.2%
K-Mart Corp. 7.75% 2012.......................................... $ 150,000 $ 144,737
K-Mart Corp. 8.38% 2022.......................................... 135,000 132,300
Southland Corp. 5.00% 2003....................................... 1,445,000 1,246,313
------------
1,523,350
------------
CONSUMER STAPLES -- 1.1%
Food, Beverage & Tobacco -- 0.7%
Ameriserve Food Distribution, Inc. 8.88% 2006*................... 300,000 300,000
Ameriserve Food Distribution, Inc. 10.13% 2007*.................. 135,000 140,400
Fleming Cos., Inc. 10.50% 2004*.................................. 365,000 385,075
Fleming Cos., Inc. 10.63% 2007*.................................. 120,000 126,900
Household Products -- 0.4%
Revlon Worldwide Parent Corp. zero coupon 2001+.................. 685,000 474,362
------------
1,426,737
------------
ENERGY -- 1.0%
Energy Services -- 0.2%
EES Coke Battery, Inc. 9.38% 2007*............................... 175,000 183,591
Energy Sources -- 0.8%
Nuevo Energy Co. 9.50% 2006...................................... 375,000 398,438
Synder Oil Corp. 8.75% 2007...................................... 490,000 494,900
Transamerican Energy Corp. zero coupon 2002(2)*.................. 175,000 142,188
------------
1,219,117
------------
FINANCE -- 9.3%
Banks -- 3.5%
Export Credit Bank of Turkey 9.00% 2000.......................... 1,750,000 1,666,875
SBC Agro Finance Bank 10.25% 2000................................ 2,400,000 1,968,000
Western Financial Savings Bank 8.88% 2007........................ 735,000 703,763
Financial Services -- 5.8%
Alps Series 96-1, Class D 12.72% 2006*........................... 149,588 161,313
California FM Lease Trust 8.50% 2017*............................ 244,664 258,120
Criimi Mae, Inc. 9.13% 2002...................................... 300,000 300,375
Dillon Read Structured Finance Corp. Series 1993 Class A 6.66%
2010........................................................... 90,902 82,670
Dillon Read Structured Finance Corp. Series 1994 Class A 7.60%
2007........................................................... 273,484 267,361
Dillon Read Structured Finance Corp. Series 1994 Class A 8.38%
2015........................................................... 625,000 611,913
FMAC Loan Receivables Trust Class C 7.93% 2018*.................. 147,489 130,787
Fox/Liberty Networks LLC 8.88% 2007.............................. 160,000 159,200
Fox/Liberty Networks LLC zero coupon 2007........................ 2,300,000 1,443,250
Long Beach Acceptance Auto Grantor Trust 14.22% 2003............. 500,000 499,760
Navistar Financial Corp. 9.00% 2002.............................. 105,000 108,675
OHA Auto Grantor Trust 11.00% 2004*.............................. 1,000,000 1,001,559
Securitized Multiple Asset 7.72% 2005*........................... 543,661 544,665
Unexim International Finance Bank 9.88% 2000*.................... 2,100,000 1,701,000
------------
11,609,286
------------
</TABLE>
- ---------------------
18
<PAGE> 19
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 2.8%
Health Services -- 2.6%
Integrated Health Services, Inc. 9.50% 2007*..................... $ 1,095,000 $ 1,105,950
Tenet Healthcare Corp. 8.63% 2007................................ 745,000 761,762
Vencor, Inc. 8.63% 2007*......................................... 1,395,000 1,374,075
Medical Products -- 0.2%
Kinetic Concepts, Inc. 9.63% 2007*............................... 300,000 302,250
------------
3,544,037
------------
INDUSTRIAL & COMMERCIAL -- 3.3%
Aerospace & Military Technology -- 0.3%
Jet Equipment Trust 11.79% 2013*................................. 300,000 399,117
Business Services -- 0.6%
Norcal Waste Systems, Inc. 13.50% 2005(1)........................ 615,000 707,250
Electrical Equipment -- 2.4%
CSN Iron SA 9.13% 2007........................................... 2,100,000 1,800,750
Horseshoe Gaming LLC 9.38% 2007.................................. 1,220,000 1,262,700
------------
4,169,817
------------
INFORMATION & ENTERTAINMENT -- 8.9%
Broadcasting & Media -- 5.5%
Big Flower Press Holdings, Inc. 8.88% 2007....................... 500,000 505,000
Grupo Televisa SA de CV zero coupon 2008(2)...................... 950,000 722,000
Nextel Communications, Inc. zero coupon 2004(2).................. 955,000 823,688
Outdoor Systems Inc., 8.88% 2007................................. 750,000 774,375
Paramount Communications, Inc. 8.25% 2022........................ 1,375,000 1,377,626
RCN Corp. 11.13% 2007*........................................... 900,000 520,875
Sinclair Broadcast Group, Inc. 9.00% 2007........................ 840,000 844,200
TCI Satellite Entertainment, Inc. zero coupon 2007(2)*........... 1,250,000 787,500
Telesystem International Wireless, Inc. 10.50% 2007(1)*.......... 1,000,000 542,500
Cable -- 1.1%
Cablevision Systems Corp. 9.88% 2006............................. 525,000 569,625
Rogers Cablesystems Ltd. 10.13% 2012............................. 425,000 459,000
Rogers Cablesystems Ltd. Series B 10.00% 2005.................... 295,000 323,025
Gaming -- 0.9%
Grand Casino, Inc. 10.13% 2003................................... 680,000 722,500
Station Casinos, Inc. 9.75% 2007*................................ 400,000 403,000
Leisure & Tourism -- 1.4%
Host Marriot Corp. Acquisition Properties, Inc. Class B 9.00%
2007........................................................... 555,000 571,650
Host Marriott Travel Plazas Class B 9.50% 2005................... 680,000 717,400
Huntsman Corp. 9.09% 1998(1)*.................................... 440,000 460,900
------------
11,124,864
------------
INFORMATION TECHNOLOGY -- 10.7%
Cellular -- 2.0%
Comcast Cellular Holdings, Inc. 9.50% 2007*...................... 1,035,000 1,078,988
Rogers Cantel, Inc. 8.30% 2007................................... 1,195,000 1,196,494
Rogers Communications, Inc. 8.88% 2007........................... 75,000 75,562
Rogers Communications, Inc. 9.13% 2006........................... 90,000 91,350
Electronics -- 1.0%
Advanced Micro Devices, Inc. 11.00% 2003......................... 1,140,000 1,225,500
</TABLE>
---------------------
19
<PAGE> 20
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Telecommunications -- 7.7%
Brooks Fiber Properties, Inc. zero coupon 2006(2)................ $ 475,000 $ 390,094
Brooks Fiber Properties, Inc. 11.88% 2006(1)*.................... 650,000 515,125
CIEA International de Telecommunicaciones 10.38% 2004............ 5,000,000 4,250,000
Comcast Corp. 1.13% 2007......................................... 415,000 267,675
Consorcio Ecuatoriano de Telecomunicaciones 14.00% 2002.......... 1,600,000 1,600,000
Dial Callable Communications, Inc. zero coupon 2004(2)(a)........ 600,000 570,000
Hermes Europe Railtel BV 11.50% 2007............................. 90,000 97,875
Intermedia Communications, Inc. zero coupon 2007(2).............. 400,000 274,000
IXC Communications, Inc. 12.50% 2005............................. 425,000 484,500
Lenfest Communications, Inc. 8.38% 2005.......................... 165,000 165,412
Qwest Communications International, Inc. 10.88% 2007............. 200,000 225,000
Teleport Communications Group zero coupon 2007(2)................ 1,070,000 847,975
------------
13,355,550
------------
MATERIALS -- 2.4%
Chemicals -- 0.9%
ISP Holdings, Inc.Class B 9.00% 2003............................. 1,090,000 1,130,875
Forest Products -- 0.3%
S.D. Warren Co. 12.00% 2004...................................... 265,000 296,800
Metals & Minerals -- 1.2%
Acindar Industria Argentina de Aceros SA 11.66% due 1998......... 1,500,000 1,507,500
------------
2,935,175
------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 46.0%
Foreign Government -- 46.0%
Brazil Credit Linked Note zero coupon 1999(2).................... 4,000,000 3,320,000
Federal Republic of Brazil 4.50% 2014(1)......................... 11,815,850 8,861,888
Federal Repuplic of Brazil 10.13% 2027........................... 1,460,000 1,287,720
Jamaica Government Bonds 9.63% 2002.............................. 1,000,000 945,000
Jamaica Government Bonds 12.00% 1999............................. 2,000,000 2,020,000
Republic of Argentina 6.69% 2005(1).............................. 2,112,000 1,869,120
Repuplic of Argentina 9.75% 2027................................. 1,100,000 1,013,100
Republic of Argentina 11.75% 2007*............................... 3,500,000 3,255,000
Republic of Bulgaria 2.25% 2012(1)............................... 6,000,000 3,547,500
Republic of Bulgaria 6.69% 2011(1)............................... 5,500,000 3,867,188
Republic of Ecuador 3.25% 2015(4)(1)............................. 4,374,240 2,706,561
Republic of Ecuador 3.25% 2015(1)................................ 2,460,510 1,522,440
Perublic of Panama 8.88% 2027.................................... 650,000 598,000
Republic of Peru 3.25% 2017(1)*.................................. 4,300,000 2,451,000
Republic of Venezuela 6.75% 2007(1).............................. 5,000,000 4,412,500
Republic of Venezuela 9.25% 2027(1).............................. 5,000,000 4,395,000
Russia Federation Ministry Finance 3.00% 2003 GDR*............... 1,200,000 747,000
Russia Principal Notes zero coupon 1999(4)....................... 7,600,000 4,332,000
United Mexican States 6.25% 2019................................. 3,750,000 3,039,375
United Mexican States 11.38% 2016................................ 3,000,000 3,390,000
------------
57,580,392
------------
UTILITIES -- 1.9%
Electric Utilities -- 1.7%
AES Corp. 8.50% 2007*............................................ 490,000 485,101
Midland Cogeneration 10.33% 2002................................. 260,301 284,181
Midland Funding Corp. 11.75% 2005................................ 40,000 47,821
Mosenergo Finance BV 8.38% 2002*................................. 1,550,000 1,333,000
</TABLE>
- ---------------------
20
<PAGE> 21
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Telephone -- 0.2%
Teligent, Inc. 11.50% 2007....................................... $ 250,000 $ 250,000
------------
2,400,103
------------
LOAN AGREEMENT -- 5.5%
Loan Agreement -- 5.5%
Columbia Hercules 1991 Integrated Loan 7.00% 1997................ 1,350,000 1,269,000
Gabon Loans 6.69% 2004........................................... 2,785,714 2,312,143
Ivory Coast Caisse Autonome zero coupon+......................... DEM 1,445,000 340,048
Ivory Coast FLIRB zero coupon 1999(1)............................ 2,400,000 792,000
Morocco Restructuring + Consolidating Agreement 5.84% 1998(1).... 2,000,000 1,680,000
Russia BFEA zero coupon+......................................... 600,000 512,400
------------
6,905,591
------------
TOTAL BONDS & NOTES (cost $119,967,539).......................... 117,794,019
------------
<CAPTION>
COMMON STOCK -- 0.0% SHARES
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 0.0%
Broadcasting & Media -- 0.0%
Nextel Communications, Inc., Class A+ (cost $35,613)............. 2,207 55,727
------------
PREFERRED STOCK -- 1.5%
--------------------------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 1.5%
Broadcasting & Media -- 1.5%
Time Warner, Inc. Series M 10.25% (cost $1,874,714).............. 1,670 1,907,975
------------
TOTAL INVESTMENT SECURITIES (cost $121,877,866).................. 119,757,721
------------
</TABLE>
---------------------
21
<PAGE> 22
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 6.5% AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 5.5%
Agreement with State Street Bank & Trust Co., bearing interest of
5.00% dated 11/28/97, to be repurchased 12/01/97 in the amount
of $8,100,374 and collateralized by 8,155,000 U.S. Treasury
Notes 6.35% due 4/30/99 approximate aggregate value $8,266,568
(cost $8,097,000).............................................. $ 8,097,000 8,097,000
---------------
TOTAL INVESTMENTS --
(cost $129,974,866) 102.1% 127,854,721
Liabilities in excess of other assets -- (2.1) (2,630,400)
------ ---------------
NET ASSETS -- 100.0% $ 125,224,321
====== ===============
</TABLE>
-----------------------------
+ Non-income producing security
* Resale restricted to qualified institutional buyers
(1) Variable rate security; rate as of November 30, 1997
(2) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date
(3) Consists of more than one class of securities traded together
as a unit; generally bonds with attached stocks or warrants
(4) A portion of the coupon interest is received in cash and a
portion is capitalized in the principal of the security
DEM -- Deutsche Mark GDR -- Global Depository
Receipt
Allocation of investments as a percentage of net assets by country
as of November 30, 1997:
<TABLE>
<S> <C>
United States............................................................ 36.5%
Brazil................................................................... 10.8
Argentina................................................................ 9.5
Venezuela................................................................ 7.0
Russia................................................................... 6.6
Bulgaria................................................................. 5.9
Mexico................................................................... 5.7
Ecuador.................................................................. 4.7
Jamaica.................................................................. 2.4
Peru..................................................................... 2.0
Panama................................................................... 1.9
Netherlands.............................................................. 1.9
Gabon.................................................................... 1.9
Canada................................................................... 1.8
Morocco.................................................................. 1.3
Turkey................................................................... 1.3
Ivory Coast.............................................................. 0.9
-----
102.1%
=====
</TABLE>
See Notes to Financial Statements
- ---------------------
22
<PAGE> 23
- ---------------------
SUNAMERICA SERIES TRUST
SUNAMERICA BALANCED
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 67.9% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 4.0%
Apparel & Textiles -- 0.8%
Gap, Inc............................................................... 7,000 $ 375,813
Housing -- 0.9%
Home Depot, Inc........................................................ 7,500 419,531
Retail -- 2.3%
CVS Corp............................................................... 4,000 265,500
Republic Industries, Inc.+............................................. 5,000 130,312
Wal-Mart Stores, Inc................................................... 10,000 399,375
Woolworth Corp.+....................................................... 10,000 216,250
-------------
1,806,781
-------------
CONSUMER STAPLES -- 2.1%
Food, Beverage & Tobacco -- 1.4%
PepsiCo, Inc........................................................... 5,000 184,375
Philip Morris Cos., Inc................................................ 10,000 435,000
Household Products -- 0.7%
Procter & Gamble Co.................................................... 4,000 305,250
-------------
924,625
-------------
ENERGY -- 6.3%
Energy Services -- 2.1%
ENSCO International, Inc............................................... 6,000 214,500
Halliburton Co......................................................... 6,000 323,625
Schlumberger Ltd....................................................... 5,000 411,563
Energy Sources -- 4.2%
Baker Hughes, Inc...................................................... 6,000 251,250
Chevron Corp........................................................... 5,000 400,937
Mobil Corp............................................................. 4,000 287,750
Noble Affiliates, Inc.................................................. 5,000 185,625
Royal Dutch Petroleum Co. ADR.......................................... 4,000 210,750
Seagull Energy Corp.+.................................................. 10,000 228,125
Texaco, Inc............................................................ 5,000 282,500
-------------
2,796,625
-------------
FINANCE -- 20.3%
Banks -- 10.4%
Ahmanson (H.F.) & Co................................................... 5,000 297,500
Banc One Corp.......................................................... 5,000 256,875
BankAmerica Corp....................................................... 5,000 365,000
BankBoston Corp........................................................ 5,000 445,625
Barnett Banks, Inc..................................................... 3,500 246,312
Chase Manhattan Corp................................................... 4,000 434,500
Citicorp............................................................... 2,000 239,875
First Union Corp....................................................... 6,000 292,500
Fleet Financial Group, Inc............................................. 3,000 198,187
Hibernia Corp., Class A................................................ 20,000 362,500
</TABLE>
---------------------
23
<PAGE> 24
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Mellon Bank Corp....................................................... 3,000 $ 170,063
Summit Bancorp......................................................... 15,000 699,375
Wells Fargo & Co....................................................... 2,000 614,500
Financial Services -- 7.6%
American Express Co.................................................... 7,000 552,125
Beneficial Corp........................................................ 3,000 232,875
C.I.T Group, Inc. Class A.............................................. 7,000 212,625
Donaldson, Lufkin & Jenrette, Inc...................................... 4,000 291,500
Household International, Inc........................................... 2,000 252,000
Lehman Brothers Holdings, Inc.......................................... 5,000 252,813
Morgan Stanley, Dean Witter, Discover & Co............................. 5,000 271,563
Providian Financial Corp............................................... 7,000 308,437
ReliaStar Financial Corp............................................... 9,300 344,100
Transamerica Corp...................................................... 2,000 217,125
Travelers Group, Inc................................................... 9,000 454,500
Insurance -- 2.3%
Allstate Corp.......................................................... 5,000 429,375
Conseco, Inc........................................................... 8,000 372,500
St. Paul Co., Inc...................................................... 3,000 240,000
-------------
9,054,350
-------------
HEALTHCARE -- 10.0%
Drugs -- 7.9%
Amgen, Inc.+........................................................... 4,000 204,500
Biogen, Inc.+.......................................................... 3,000 105,000
Bristol-Myers Squibb Co................................................ 5,000 468,125
IDEC Pharmaceuticals Corp.+............................................ 19,500 681,281
Lilly (Eli) & Co....................................................... 6,000 378,375
Merck & Co., Inc....................................................... 4,000 378,250
Pfizer, Inc............................................................ 7,000 509,250
Schering-Plough Corp................................................... 6,000 376,125
Warner-Lambert Co...................................................... 3,000 419,625
Health Services -- 0.2%
Chiron Corp.+.......................................................... 6,000 109,125
Medical Products -- 1.9%
Johnson & Johnson...................................................... 5,000 314,687
Neurex Corp.+.......................................................... 10,000 156,250
Novartis AG ADR........................................................ 3,000 239,674
US Surgical Corp....................................................... 5,000 131,875
-------------
4,472,142
-------------
INDUSTRIAL & COMMERCIAL -- 4.1%
Aerospace & Military Technology -- 1.5%
AlliedSignal, Inc...................................................... 3,000 111,375
Boeing Co.............................................................. 6,000 318,750
United Technologies Corp............................................... 3,400 254,787
Electrical Equipment -- 1.9%
General Electric Co.................................................... 6,000 442,500
Westinghouse Electric Corp............................................. 13,000 390,000
Machinery -- 0.3%
Deere & Co............................................................. 2,000 109,625
Transportation -- 0.4%
Burlington Northern Santa Fe........................................... 2,000 183,000
-------------
1,810,037
-------------
</TABLE>
- ---------------------
24
<PAGE> 25
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 2.4%
Broadcasting & Media -- 1.0%
AirTouch Communications, Inc.+......................................... 8,000 $ 314,000
Teligent, Inc.......................................................... 5,000 128,125
Leisure & Tourism -- 1.4%
Carnival Corp., Class A................................................ 5,000 270,313
HFS, Inc.+............................................................. 5,000 343,125
-------------
1,055,563
-------------
INFORMATION TECHNOLOGY -- 10.9%
Communication Equipment -- 2.3%
Nokia Corp., Class A ADR............................................... 3,000 249,375
Northern Telecom Ltd................................................... 5,000 449,062
Tellabs, Inc.+......................................................... 6,000 312,000
Computers & Business Equipment -- 2.5%
Compaq Computer Corp................................................... 3,000 187,313
Dell Computer Corp.+................................................... 3,000 252,562
Hewlett-Packard Co..................................................... 4,000 244,250
International Business Machines Corp................................... 4,000 438,250
Electronics -- 2.5%
Intel Corp............................................................. 5,000 388,125
Motorola, Inc.......................................................... 7,000 440,125
Texas Instruments, Inc................................................. 6,000 295,500
Software -- 1.2%
Cisco Systems, Inc.+................................................... 3,000 258,750
Microsoft Corp.+....................................................... 2,000 283,000
Telecommunications -- 2.4%
Lucent Technologies, Inc............................................... 10,000 801,250
Teleport Communications Group Inc., Class A+........................... 5,000 245,000
-------------
4,844,562
-------------
MATERIALS -- 1.9%
Chemicals -- 0.7%
du Pont (E.I.) de Nemours & Co......................................... 5,000 302,813
Forest Products -- 0.9%
Champion International Corp............................................ 8,000 428,500
Metals & Minerals -- 0.3%
Aluminum Co. of America................................................ 2,000 134,500
-------------
865,813
-------------
REAL ESTATE -- 0.7%
Real Estate Companies -- 0.3%
Security Capital Group, Inc., Class B+................................. 5,000 160,625
Real Estate Investment Trusts -- 0.4%
Equity Office Properties Trust......................................... 5,000 162,188
-------------
322,813
-------------
UTILITIES -- 5.2%
Electric Utilities -- 0.5%
CalEnergy Co., Inc.+................................................... 7,000 232,750
Gas & Pipeline Utilities -- 1.0%
Enron Corp............................................................. 10,000 387,500
TransCoastal Marine Services, Inc.+.................................... 2,000 39,000
</TABLE>
---------------------
25
<PAGE> 26
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Telephone -- 3.7%
AT&T Corp.............................................................. 22,000 $ 1,229,250
Bell Atlantic Corp..................................................... 5,000 446,250
-------------
2,334,750
-------------
TOTAL COMMON STOCK (cost $27,039,307).................................. 30,288,061
-------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 26.6% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 1.7%
Automotive -- 1.7%
Chrysler Corp. 7.45% 2027.............................................. $ 750,000 792,578
-------------
FINANCE -- 2.3%
Financial Services -- 2.3%
Morgan Stanley Group, Inc. 6.88% 2007.................................. 1,000,000 1,015,970
-------------
INFORMATION TECHNOLOGY -- 2.2%
Electronics -- 2.2%
Texas Instruments, Inc. 6.13% 2006..................................... 1,000,000 972,930
-------------
U.S. GOVERNMENT -- 20.4%
U.S. Treasury Bonds & Notes -- 20.4%
United States Treasury Bonds 6.63% 2027................................ 1,150,000 1,231,396
United States Treasury Notes 6.00% 2000................................ 1,000,000 1,004,690
United States Treasury Notes 6.13% 2007................................ 3,500,000 3,567,270
United States Treasury Notes 6.25% 2002................................ 2,250,000 2,283,750
United States Treasury Notes 6.38% 2000................................ 1,000,000 1,012,810
-------------
9,099,916
-------------
TOTAL BONDS & NOTES (cost $11,565,014)................................. 11,881,394
-------------
TOTAL INVESTMENT SECURITIES (cost $38,604,321)......................... 42,169,455
-------------
REPURCHASE AGREEMENT -- 5.3%
----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 5.3%
Joint Repurchase Agreement Account (Note 3)
(cost $2,364,000).................................................... 2,364,000 2,364,000
-------------
TOTAL INVESTMENTS --
(cost $40,968,321) 99.8% 44,533,455
Other assets less liabilities -- 0.2 87,701
------ -------------
NET ASSETS -- 100.0% $44,621,156
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
- ---------------------
26
<PAGE> 27
- ---------------------
SUNAMERICA SERIES TRUST
BALANCED/PHOENIX INVESTMENT
COUNSEL PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 56.2% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 4.6%
Housing -- 0.9%
Home Depot, Inc...................................................... 14,900 $ 833,469
Retail -- 3.7%
Borders Group, Inc.+................................................. 13,100 374,169
CVS Corp............................................................. 15,200 1,008,900
Rite Aid Corp........................................................ 15,900 1,045,425
Safeway, Inc.+....................................................... 19,300 1,172,475
-------------
4,434,438
-------------
CONSUMER STAPLES -- 3.9%
Food, Beverage & Tobacco -- 1.5%
Philip Morris Cos., Inc.............................................. 33,800 1,470,300
Household Products -- 2.4%
Colgate-Palmolive Co................................................. 8,700 581,269
Gillette Co.......................................................... 12,400 1,144,675
Sunbeam Corp......................................................... 12,200 537,562
-------------
3,733,806
-------------
ENERGY -- 7.2%
Energy Services -- 4.9%
BJ Services Co.+..................................................... 6,600 473,962
Cooper Cameron Corp.+................................................ 3,700 225,469
Diamond Offshore Drilling, Inc....................................... 8,900 443,888
Halliburton Co....................................................... 16,500 889,969
Nabors Industries, Inc.+............................................. 9,300 326,081
Noble Drilling Corp.+................................................ 7,800 234,488
Rowan Cos., Inc.+.................................................... 7,000 238,000
Santa Fe International Corp.+........................................ 7,500 314,531
Schlumberger Ltd..................................................... 12,500 1,028,906
Transocean Offshore, Inc............................................. 10,100 479,119
Energy Sources -- 2.3%
Elf Aquitaine SA ADR................................................. 13,400 767,150
Tosco Corp........................................................... 26,700 869,419
YPF Sociedad Anonima, Class D ADR.................................... 16,900 567,206
-------------
6,858,188
-------------
FINANCE -- 9.9%
Banks -- 4.8%
AmSouth Bancorp...................................................... 3,400 177,013
Banco Rio de La Plata SA, Class B ADR+............................... 18,000 226,125
BankAmerica Corp..................................................... 9,600 700,800
BankBoston Corp...................................................... 9,700 864,512
Citicorp............................................................. 3,600 431,775
Fleet Financial Group, Inc........................................... 600 39,638
Mellon Bank Corp..................................................... 20,000 1,133,750
NationsBank Corp..................................................... 17,400 1,045,087
</TABLE>
---------------------
27
<PAGE> 28
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services -- 3.7%
American Express Co.................................................. 2,500 $ 197,188
Compass Bancshares, Inc.............................................. 2,500 100,000
Franklin Resources, Inc.............................................. 1,100 98,863
Merrill Lynch & Co., Inc............................................. 13,000 912,437
Price (T. Rowe) Associates, Inc...................................... 8,150 529,750
Travelers Group, Inc................................................. 21,750 1,098,375
Washington Mutual Inc................................................ 8,400 580,650
Insurance -- 1.4%
Allstate Corp........................................................ 12,000 1,030,500
Hartford Financial Services Group, Inc............................... 3,600 301,500
-------------
9,467,963
-------------
HEALTHCARE -- 9.3%
Drugs -- 6.7%
Bristol-Myers Squibb Co.............................................. 9,400 880,075
Cardinal Health, Inc................................................. 11,300 855,975
Elan Corp. PLC ADR+.................................................. 5,700 300,675
Lilly (Eli) & Co..................................................... 12,700 800,894
Pfizer, Inc.......................................................... 27,000 1,964,250
Warner-Lambert Co.................................................... 8,100 1,132,987
Watson Pharmaceuticals, Inc.+........................................ 16,900 502,775
Health Services -- 0.6%
HEALTHSOUTH Corp.+................................................... 21,400 561,750
Medical Products -- 2.0%
Centocor, Inc.+...................................................... 9,600 417,600
Guidant Corp......................................................... 14,300 918,775
Medtronic, Inc....................................................... 12,600 601,650
-------------
8,937,406
-------------
INDUSTRIAL & COMMERCIAL -- 3.2%
Electrical Equipment -- 1.2%
General Electric Co.................................................. 16,300 1,202,125
Machinery -- 0.6%
Deere & Co........................................................... 10,400 570,050
Multi-Industry -- 1.2%
Tyco International Ltd............................................... 29,000 1,138,250
Transportation -- 0.2%
Federal Express Corp.+............................................... 2,700 181,069
-------------
3,091,494
-------------
INFORMATION & ENTERTAINMENT -- 2.6%
Broadcasting & Media -- 2.6%
AirTouch Communications, Inc.+....................................... 35,600 1,397,300
Chancellor Media Corp.+.............................................. 3,700 222,231
Liberty Media Group Corp. Class A+................................... 24,900 840,375
-------------
2,459,906
-------------
INFORMATION TECHNOLOGY -- 13.7%
Communication Equipment -- 0.8%
CIENA Corp.+......................................................... 14,900 804,600
Computers & Business Equipment -- 4.7%
EMC Corp.+........................................................... 28,800 873,000
International Business Machines Corp................................. 28,000 3,067,750
Staples, Inc.+....................................................... 21,300 600,394
</TABLE>
- ---------------------
28
<PAGE> 29
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Electronics -- 4.3%
Adaptec, Inc.+....................................................... 16,900 $ 836,550
Linear Technology Corp............................................... 4,200 270,375
National Semiconductor Corp.+........................................ 23,500 778,437
Philips Electronics NV ADR........................................... 24,200 1,621,400
Texas Instruments, Inc............................................... 12,000 591,000
Software -- 3.2%
BMC Software, Inc.+.................................................. 9,000 583,875
Cisco Systems, Inc.+................................................. 8,500 733,125
Compuware Corp.+..................................................... 17,700 618,394
HBO & Co.+........................................................... 19,100 857,112
J.D. Edwards & Co.+.................................................. 2,000 68,500
Yahoo!, Inc.+........................................................ 3,100 158,488
Telecommunications -- 0.7%
Lucent Technologies, Inc............................................. 8,100 649,012
-------------
13,112,012
-------------
MATERIALS -- 0.3%
Chemicals -- 0.3%
Solutia, Inc......................................................... 12,500 285,156
-------------
UTILITIES -- 1.5%
Telephone -- 1.5%
AT&T Corp............................................................ 25,900 1,447,163
-------------
TOTAL COMMON STOCK (cost $49,744,386)................................ 53,827,532
-------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 32.7% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 4.4%
Financial Services -- 4.4%
Aesop Funding II LLC 6.40% 2003*..................................... $ 600,000 600,096
CS First Boston Mortgage Securities Corp. 7.18% 2027(1).............. 300,000 303,000
DLJ Mortgage Acceptance Corp. 7.58% 2028*............................ 100,000 106,063
Federal National Mortgage Association Remic Trust 6.85% 2020......... 700,000 711,375
First Union-Lehman Brothers Commercial Mortgage Trust 7.43% 2029..... 140,000 146,650
Fleetwood Credit Grantor Trust 6.90% 2012............................ 74,058 74,834
GE Capital Mortgage Services, Inc. 7.25% 2026........................ 296,041 300,166
Green Tree Financial Corp. 7.40% 2027................................ 125,000 128,926
Green Tree Financial Corp. 7.60% 2027................................ 125,000 129,668
Nationslink Funding Corp. 7.69% 2005................................. 250,000 264,102
Residential Asset Securitization Trust 8.00% 2026.................... 205,594 212,179
Residential Funding Mortgage Securities 6.75% 2011................... 279,930 282,336
Residential Funding Mortgage Securities 7.10% 2026................... 200,000 202,622
Residential Funding Mortgage Securities 7.25% 2026................... 295,391 297,976
Structured Asset Securities Corp. 6.95% 2007......................... 140,000 142,625
Structured Asset Securities Corp. 7.00% 2026......................... 300,000 300,562
-------------
4,203,180
-------------
INDUSTRIAL & COMMERCIAL -- 0.4%
Electrical Equipment -- 0.4%
Capital Equipment Resolution 6.45% 2002.............................. 360,000 358,987
-------------
</TABLE>
---------------------
29
<PAGE> 30
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS -- 0.4%
Forest Products -- 0.4%
Buckeye Cellulose Corp. 8.50% 2005................................... $ 300,000 $ 304,500
Buckeye Cellulose Corp. 9.25% 2008................................... 100,000 105,500
-------------
410,000
-------------
MUNICIPAL BONDS -- 2.6%
Municipal Bonds -- 2.6%
California State Department Water Resources 5.00% 2029............... 190,000 182,390
Florida State Department of Transportation 5.00% 2027................ 230,000 219,740
Houston Texas Water & Sewer Systems Revenue 5.00% 2025............... 290,000 277,785
Kern County California Pension Obligation 7.26% 2014................. 220,000 231,563
Long Beach California Pension Obligation 6.87% 2006.................. 30,000 31,093
Massachusetts State Water Resources Authority 5.00% 2024............. 230,000 220,506
Miami Beach Florida Special Obligation 8.60% 2021.................... 430,000 473,714
Newport News 7.05% 2025.............................................. 250,000 251,407
Orange County California Pension Obligation 7.62% 2008............... 160,000 172,791
San Bernardino County California Financing Authority 6.87% 2008...... 15,000 15,491
San Bernardino County California Financing Authority 6.94% 2009...... 35,000 36,329
University Miami Florida Exchange Revenue 7.65% 2020................. 80,000 82,907
Ventura County California Pension 6.54% 2005......................... 30,000 30,127
Washington State General Obligation Series 1997E 5.00% 2022.......... 290,000 279,261
-------------
2,505,104
-------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 1.6%
Foreign Government -- 1.6%
Columbia Republic 7.63% 2007......................................... 300,000 281,042
Compania Sud Americana de Vapores SA 7.38% 2003...................... 50,000 48,300
Federative Republic of Brazil 5.25% 2024(2).......................... 300000 207,000
Federative Republic of Brazil 6.69% 2024(2).......................... 170,000 133,875
Republic of Argentina 5.50% 2023(2).................................. 475,000 337,250
Republic of Argentina 6.88% 2023(2).................................. 175000 142,187
United Mexican States 6.25% 2019..................................... 225,000 179,016
United Mexican States 6.62% 2019..................................... 250,000 226,550
-------------
1,555,220
-------------
U.S. GOVERNMENT AND AGENCIES -- 23.3%
U.S. Government & Agencies -- 23.3%
Government National Mortgage Association 6.50% 2023.................. 251,489 248,190
Government National Mortgage Association 6.50% 2026.................. 317,404 312,344
Government National Mortgage Association 6.50% 2026.................. 3,243,779 3,192,073
United States Treasury Bonds 6.00% 2026.............................. 210,000 206,686
United States Treasury Bonds 6.38% 2027.............................. 2,045,000 2,126,473
United States Treasury Notes 5.75% 2000.............................. 350,000 349,342
United States Treasury Notes 5.75% 2002.............................. 4,860,000 4,844,059
United States Treasury Notes 6.00% 2000.............................. 3,500,000 3,516,415
United States Treasury Notes 6.50% 2005.............................. 1,450,000 1,501,881
United States Treasury Notes 6.50% 2006.............................. 3,895,000 4,050,177
United States Treasury Notes 6.75% 2000.............................. 1,200,000 1,224,936
United States Treasury Notes 6.88% 2000.............................. 450,000 460,264
United States Treasury Notes 7.50% 2005.............................. 200,000 218,532
-------------
22,251,372
-------------
TOTAL BONDS & NOTES (cost $30,789,546)............................... 31,283,863
-------------
</TABLE>
- ---------------------
30
<PAGE> 31
<TABLE>
<CAPTION>
PRINCIPAL
RIGHTS -- 0.0%+ AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
NON-U.S. GOVERNMENT OBLIGATIONS -- 0.0%
Foreign Government -- 0.0%
United Mexican States zero coupon 6/30/03 (cost $0).................. $ 1,070,000 $ 0
-------------
WARRANTS -- 0.0%
----------------------------------------------------------------------------------------------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 0.0%
Foreign Government -- 0.0%
Republic of Venezuela 4/15/20........................................ 535 0
-------------
TOTAL INVESTMENT SECURITIES (cost $80,533,932)....................... 85,111,395
-------------
SHORT-TERM SECURITIES -- 16.0%
----------------------------------------------------------------------------------------------------
CORPORATE SHORT-TERM NOTES -- 13.5%
AT&T Corp., 5.47% due 12/1/97........................................ 2,805,000 2,805,000
du Pont (E.I.) de Nemours & Co. 5.54% due 12/10/97................... 660,000 659,086
Enterprise Capital Funding Corp. 5.65% due 2/17/98................... 477,000 471,161
General Reinsurance Corp. 5.57% due 12/17/97......................... 844,000 841,911
Heinz (H.J.) Co. 5.52% due 12/11/97.................................. 670,000 668,973
International Lease Finance Corp. 5.52% due 12/2/97.................. 2,145,000 2,144,671
International Lease Finance Corp. 5.74% due 12/2/97.................. 580,000 579,907
Koch Industries 5.53% due 12/1/97.................................... 755,000 755,000
Sara Lee Corp. 5.54% due 12/11/97.................................... 4,000,000 3,993,844
-------------
12,919,553
-------------
FEDERAL AGENCY OBLIGATIONS -- 2.5%
Federal Home Loan Bank Consolidated Discount Note 5.60% due
12/1/97............................................................ 2,400,000 2,400,000
-------------
TOTAL SHORT-TERM SECURITIES (cost $15,319,553)....................... 15,319,553
-------------
TOTAL INVESTMENTS --
(cost $95,853,485) 104.9% 100,430,948
Liabilities in excess of other assets -- (4.9) (4,709,912)
------ -------------
NET ASSETS -- 100.0% $ 95,721,036
====== =============
</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, 1997
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
31
<PAGE> 32
- ---------------------
SUNAMERICA SERIES TRUST
ASSET ALLOCATION PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 59.1% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 7.3%
Apparel & Textiles -- 1.4%
Fruit of The Loom, Inc.+............................................ 314,000 $ 7,320,125
Automotive -- 3.3%
Ford Motor Co. ..................................................... 207,000 8,901,000
Goodyear Tire & Rubber Co. ......................................... 137,100 8,320,256
Housing -- 1.6%
Centex Corp. ....................................................... 78,300 4,962,262
Lennar Corp. ....................................................... 161,800 3,377,575
Retail -- 1.0%
Fleming Cos., Inc. ................................................. 254,200 4,226,075
Sears, Roebuck & Co. ............................................... 28,200 1,291,913
-------------
38,399,206
-------------
CONSUMER STAPLES -- 3.4%
Food, Beverage & Tobacco -- 1.9%
SUPERVALU, Inc. .................................................... 168,800 6,635,950
UST, Inc. .......................................................... 100,200 3,093,675
Household Products -- 1.5%
Sunbeam Corp. ...................................................... 183,900 8,103,094
-------------
17,832,719
-------------
ENERGY -- 3.1%
Energy Services -- 3.1%
Texaco, Inc. ....................................................... 75,200 4,248,800
Tosco Corp. ........................................................ 370,700 12,070,919
-------------
16,319,719
-------------
FINANCE -- 15.1%
Banks -- 5.7%
Chase Manhattan Corp. .............................................. 71,200 7,734,100
Fleet Financial Group, Inc. ........................................ 128,600 8,495,638
Republic New York Corp. ............................................ 59,200 6,438,000
Wells Fargo & Co. .................................................. 23,700 7,281,825
Financial Services -- 2.9%
Capital One Financial Corp. ........................................ 81,600 3,697,500
CNA Financial Corp.+................................................ 5,700 698,250
Morgan Stanley, Dean Witter, Discover & Co. ........................ 196,300 10,661,544
Insurance -- 6.5%
Aetna, Inc. ........................................................ 144,300 10,876,612
CIGNA Corp. ........................................................ 79,600 13,313,100
Loews Corp. ........................................................ 73,800 7,832,025
USF & G Corp. ...................................................... 123,600 2,495,175
-------------
79,523,769
-------------
</TABLE>
- ---------------------
32
<PAGE> 33
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 3.5%
Health Services -- 3.5%
Foundation Health Systems, Inc.+.................................... 233,000 $ 6,538,562
Tenet Healthcare Corp.+............................................. 375,700 11,904,994
-------------
18,443,556
-------------
INDUSTRIAL & COMMERCIAL -- 7.2%
Aerospace & Military Technology -- 5.1%
Boeing Co. ......................................................... 95,550 5,076,094
Lear Corp.+......................................................... 216,700 10,144,269
Lockheed Martin Corp................................................ 118,500 11,561,156
Transportation -- 2.1%
AMR Corp.+.......................................................... 50,400 6,107,850
CNF Transportation, Inc............................................. 114,600 4,985,100
-------------
37,874,469
-------------
INFORMATION & ENTERTAINMENT -- 2.9%
Leisure & Tourism -- 2.9%
Circus Circus Enterprises, Inc.+.................................... 178,000 3,671,250
Continental Airlines, Inc., Class B+................................ 182,700 8,324,269
Royal Caribbean Cruises Ltd. ....................................... 76,000 3,648,000
-------------
15,643,519
-------------
INFORMATION TECHNOLOGY -- 6.2%
Communication Equipment -- 1.3%
Bay Networks, Inc.+................................................. 223,600 6,721,975
Computers & Business Equipment -- 2.8%
Quantum Corp.+...................................................... 563,300 14,997,862
Electronics -- 2.1%
Avnet, Inc. ........................................................ 163,100 10,805,375
-------------
32,525,212
-------------
MATERIALS -- 6.5%
Chemicals -- 1.8%
Union Carbide Corp. ................................................ 218,100 9,623,663
Forest Products -- 2.6%
Georgia-Pacific Corp. .............................................. 102,900 8,785,087
Stone Container Corp. .............................................. 371,800 4,647,500
Metals & Minerals -- 2.1%
AK Steel Holding Corp. ............................................. 317,400 6,248,812
Ispat International NV+............................................. 221,600 5,055,250
-------------
34,360,312
-------------
REAL ESTATE -- 0.7%
Real Estate Companies -- 0.7%
LNR Property Corp. ................................................. 161,800 3,761,850
-------------
UTILITIES -- 3.2%
Electric Utilities -- 3.2%
Northeast Utilities+................................................ 338,800 4,383,225
Unicom Corp. ....................................................... 423,300 12,328,613
-------------
16,711,838
-------------
TOTAL COMMON STOCK (cost $263,725,553).............................. 311,396,169
-------------
</TABLE>
---------------------
33
<PAGE> 34
<TABLE>
<CAPTION>
PREFERRED STOCK -- 0.3% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 0.3%
Broadcasting & Media -- 0.1%
Time Warner, Inc. Series M 10.25%(1)................................ 277 $ 315,780
Leisure & Tourism -- 0.2%
Royal Caribbean Cruises Ltd. Series A 7.25%......................... 16,000 1,240,000
-------------
1,555,780
-------------
TOTAL PREFERRED STOCK (cost $1,080,040)............................. 1,555,780
-------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 35.0% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 0.3%
Automotive -- 0.0%
Chrysler Corp. 7.45% 2097........................................... $ 190,000 198,822
Housing -- 0.2%
United States Home Corp. 7.95% 2001................................. 605,000 611,050
USI American Holdings, Inc. 7.25% 2006.............................. 240,000 239,868
Retail -- 0.1%
Fleming Cos., Inc. 10.63% 2001...................................... 270,000 285,525
K Mart Corp. 7.96% 1999............................................. 500,000 503,825
-------------
1,839,090
-------------
CONSUMER STAPLES -- 0.4%
Food, Beverage & Tobacco -- 0.4%
Ceval Alimentos 11.13% 2004......................................... 300,000 291,750
Instituto Fomento Industrial 8.38% 2001............................. 10,000 10,255
Instituto Fomento Industrial 8.38% 2001*............................ 80,000 82,040
RJR Nabisco, Inc. 8.00% 2001........................................ 460,000 473,552
RJR Nabisco, Inc. 8.63% 2002........................................ 1,200,000 1,272,108
-------------
2,129,705
-------------
ENERGY -- 0.8%
Energy Services -- 0.7%
CMS Energy Corp. 7.38% 2000(1)...................................... 950,000 946,437
Edison Mission Energy Funding Corp. 6.77% 2003*..................... 241,693 243,310
Global Marine, Inc. 12.75% 1999..................................... 900,000 924,750
National Power 7.63% 2000........................................... 320,000 326,449
Oryx Energy Co. 9.50% 1999.......................................... 910,000 954,490
Oryx Energy Co. 10.00% 2001......................................... 100,000 109,686
YPF Sociedad Anonima 7.50% 2002..................................... 83,046 83,118
Energy Sources -- 0.1%
Triton Energy Ltd. 8.75% 2002....................................... 880,000 917,400
-------------
4,505,640
-------------
FINANCE -- 8.5%
Banks -- 1.5%
Auburn Hills Trust 12.00% 2020...................................... 170,000 267,592
Banco Nacional de Obras y Servicios Publicos SNC 9.63% 2003......... 180,000 182,925
BankAmerica Corp. 9.75% 2000........................................ 400,000 432,032
Capital One Bank 6.60% 2001......................................... 1,870,000 1,879,556
Capital One Bank 6.66% 2000......................................... 150,000 150,191
Capital One Bank 6.75% 2000......................................... 1,000,000 1,003,070
Capital One Bank 6.88% 2000......................................... 850,000 861,075
Capital One Bank 6.90% 1999......................................... 500,000 505,535
Capital One Bank 8.13% 2000......................................... 340,000 351,849
Continental Bank NA 11.25% 2001..................................... 300,000 308,364
</TABLE>
- ---------------------
34
<PAGE> 35
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Banks (continued)
Continental Bank NA 12.50% 2001..................................... $ 450,000 $ 530,302
Security Pacific Corp. 11.50% 2000.................................. 600,000 681,714
Signet Banking Corp. 9.63% 1999..................................... 775,000 810,650
Financial Services -- 6.9%
APP International Finance Co. 10.25% 2000........................... 490,000 492,450
APP International Finance Co. 8.53% 1999(1)(2)...................... 550,000 509,982
APP International Finance Co. 8.87% 1999(2)......................... 300,000 276,000
APP International Finance Co. 10.25% 2000........................... 150,000 149,625
Asset Securitization Corp. 7.49% 2027............................... 1,450,000 1,539,379
Autoflow 1996 A Grantor Trust 7.48% 2002*(1)........................ 1,248,410 1,258,358
Bear Stearns Mortgage Securities, Inc. 6.75% 2008................... 1,000,959 999,269
Case Equipment Loan Trust 7.30% 2002................................ 237,882 239,381
Chevy Chase Auto Receivables 5.80% 2002............................. 152,288 151,811
Conseco Financing Trust I 8.70% 2026................................ 690,000 747,367
Countrywide Capital I 8.05% 2027.................................... 520,000 543,686
Countrywide Funding Corp. 7.73% 2001................................ 300,000 313,515
Countrywide Funding Corp. 8.43% 1999................................ 450,000 468,747
Discover Card Master Trust I 6.04% 2004(2).......................... 300,000 301,968
Discover Card Master Trust I 6.24% 2013(2).......................... 2,000,000 1,998,120
EQCC Home Equity Loan Trust 5.80% 2028(1)........................... 3,503,814 3,498,887
Fasco Grantor Trust 6.65% 2001...................................... 1,054,698 1,061,258
Financiera Energetica Nacional SA 9.38% 2006........................ 150,000 153,938
Fingerhut Financial Services 6.45% 2002............................. 920,000 924,600
First Union-Lehman Brothers Commercial Mortgage Trust 6.60% 2029.... 1,950,000 1,944,501
First Union-Lehman Brothers Commercial Mortgage Trust 7.30% 2029.... 1,050,000 1,092,656
Ford Capital BV 9.50% 2001.......................................... 800,000 878,696
Ford Credit Auto Loan Master Trust 6.50% 2002....................... 550,000 552,403
G.E. Capital Mortgage Services, Inc. 6.50% 2024(2).................. 637,890 600,414
General Motors Acceptance Corp. 5.63% 2001.......................... 750,000 734,377
Guangdong Enterprises Ltd. 8.88% 2007*.............................. 660,000 649,163
H&T Master Trust 8.00% 2002(1)*..................................... 900,000 898,875
Imperial Credit Capital Trust I zero coupon 2002.................... 205,000 202,438
Indah Kiat International Finance Co BV 11.38% 1999.................. 350,000 354,375
MBNA Master Credit Card Trust II 6.01% 1998(2)...................... 3,200,000 3,189,984
Morgan Stanley Capital I 7.46% 2006(1).............................. 1,400,000 1,458,660
Mortgage Capital Funding, Inc. 7.29% 2007........................... 1,500,000 1,563,516
Nacional Financiera, Inc. 8.59% 1997(2)............................. 600,000 600,750
Nacional Financiera, Inc. 9.00% 1999................................ 50,000 50,625
NWA Trust 8.26% 2006................................................ 244,815 262,329
Premier Auto Trust 4.90% 1998....................................... 537,132 535,617
PXRE Capital Trust I 8.85% 2027*.................................... 265,000 281,229
Sears Credit Account Master Trust 6.20% 2006........................ 700,000 697,809
Sears Credit Account Master Trust 8.10% 2004........................ 700,000 721,651
Standard Credit Card Master Trust 8.25% 2003........................ 1,010,000 1,073,751
Standard Credit Card Master Trust 8.25% 2007........................ 1,610,000 1,762,435
Voto Votorantim Overseas Trading Operations NV 8.50% 2005........... 350,000 311,671
Insurance -- 0.1%
Conseco, Inc. 10.50% 2004........................................... 500,000 596,090
-------------
44,607,211
-------------
HEALTHCARE -- 0.0%
Health Services -- 0.0%
Tenet Healthcare Corp. 9.63% 2002................................... 240,000 261,300
-------------
</TABLE>
---------------------
35
<PAGE> 36
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL -- 0.4%
Aerospace & Military Technology -- 0.0%
Newport News Shipbuilding, Inc. 9.25% 2006.......................... $ 250,000 $ 261,250
Business Services -- 0.3%
Hertz Corp. 7.00% 2003.............................................. 750,000 759,210
Loewen Group International, Inc. 8.25% 2003......................... 600,000 633,114
Multicanal Participacoes SA 12.63% 2004*............................ 200,000 189,500
Transportation -- 0.1%
MRS Logistica SA 9.00% 2005*(1)..................................... 100,000 94,000
MRS Logistica SA 10.63% 2005*....................................... 230,000 211,025
-------------
2,148,099
-------------
INFORMATION & ENTERTAINMENT -- 3.5%
Broadcasting & Media -- 3.0%
Bonos Del Tesoro 8.75% 2002......................................... 460,000 425,500
CBS 7.75% 1999...................................................... 740,000 750,908
CenCall Communications Corp. zero coupon 2004....................... 485,000 423,769
Globo Participacoes Limitada 11.50% 2003(2)......................... 360,000 356,400
Grupo Insacell SA de CV 10.00% 2004................................. 250,000 252,500
Grupo Televisa SA 11.38% 2003....................................... 210,000 227,086
Innova S de R. L. 12.88% 2007*...................................... 270,000 265,950
NWCG Holding Corp. zero coupon 1999................................. 1,380,000 1,252,750
Paramount Communications, Inc. 7.50% 2002........................... 200,000 203,952
Poland Communications, Inc. 9.88% 2003.............................. 160,000 160,400
Rogers Cablesystems Ltd. 9.63% 2002................................. 440,000 464,200
SCI Television, Inc. 11.00% 2005.................................... 200,000 207,562
Tele-Communications, Inc. 8.25% 2003................................ 2,500,000 2,646,800
Tele-Communications, Inc. 9.65% 2003................................ 375,000 400,804
Time Warner Pass Through Asset Trust 4.90% 1999..................... 1,600,000 1,563,232
Time Warner, Inc 7.25% 2017......................................... 850,000 849,133
Time Warner, Inc. 7.95% 2000........................................ 4,345,000 4,464,357
United International Holdings, Inc. zero coupon 1999+............... 210,000 169,050
Viacom, Inc. 9.13% 1999............................................. 325,000 329,199
Viacom, Inc. 10.25% 2001............................................ 175,000 187,778
Leisure & Tourism -- 0.5%
America West Airlines 8.16% 2002.................................... 1,498,595 1,495,238
Northwest Airlines, Inc. 12.09% 2000................................ 365,926 409,068
Norwest Airlines Corp. 8.97% 2015................................... 864,431 934,994
-------------
18,440,630
-------------
INFORMATION TECHNOLOGY -- 0.4%
Communication Equipment -- 0.0%
TCI Communications, Inc. 6.82% 2010................................. 95,000 95,289
TCI Communications, Inc. 8.75% 2015................................. 120,000 136,342
Electronics -- 0.1%
Axa SA de CV 9.00% 2004(1).......................................... 320,000 308,800
Telecommunications -- 0.3%
360 Communications Co. 7.13% 2003................................... 1,130,000 1,143,323
Adelphia Communications Corp. 10.25% 2000........................... 250,000 257,500
-------------
1,941,254
-------------
MATERIALS -- 0.6%
Forest Products -- 0.2%
Grupo Industrial Durango SA de CV 12.00% 2001....................... 140,000 151,150
Grupo Industrial Durango SA de CV 12.63% 2003....................... 560,000 621,600
PT Indah Kiat Pulp & Paper Corp. 8.88% 2000......................... 110,000 104,609
</TABLE>
- ---------------------
36
<PAGE> 37
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
-----------------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Metals & Minerals -- 0.4%
Acindar Industries 11.66% due 11/12/98.............................. $ 440,000 $ 435,147
Cemex SA de CV 10.00% 1999.......................................... 690,000 710,700
Freeport McMorgan Resource LP 8.75% 2004............................ 240,000 250,800
Industrias Metalurgicas Pescarmona SA 9.50% 2002.................... 210,000 201,075
LTV Corp. 8.20% 2007................................................ 600,000 588,000
-------------
3,063,081
-------------
MUNICIPAL BONDS -- 1.0%
Municipal Bonds -- 1.0%
Chicago Illinois Skyway Toll Bridge Revenue 5.50% 2023.............. 585,000 588,832
Indiana Health Facility Financing Authority Hospital Revenue 5.13%
2017.............................................................. 435,000 417,896
Marion County Indiana Convention and Recreational Facilities 5.00%
2027.............................................................. 570,000 538,143
Massachusetts Bay Authority 5.00% 2027.............................. 810,000 769,394
Massachusetts State Turnpike Authority Metropolitan Highway Systems
5.00% 2037........................................................ 1,110,000 1,051,747
New York New York City Municipal Water Finance Authority Water and
Sewer System Revenue 5.13% 2021................................... 450,000 435,937
New York New York City Municipal Water Finance Authority Water and
Sewer System Revenue 5.75% 2026................................... 445,000 457,745
North Central Texas Health Facility Development Corporation Revenue
5.13% 2022........................................................ 900,000 870,246
-------------
5,129,940
-------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 1.7%
Foreign Government -- 1.7%
Republic of Croatia 7.00% 2002(1)................................... 300,000 288,000
City of Moscow 9.50% 2000*.......................................... 370,000 356,665
City of Moscow 9.50% 2000........................................... 750,000 725,625
Ministry of Finance Russia 10.00% 2007.............................. 670,000 599,231
Province of Quebec 13.25% 2014...................................... 625,000 723,544
Republic of Argentina zero coupon 2001.............................. 1,600,000 1,689,000
Republic of Argentina 5.50% 2000(1)................................. JPY 60,000,000 475,771
Republic of Argentina 8.00% 1998(1)................................. 1,200,000 1,183,800
Republic of Panama 6.84% 1998(2).................................... 1,800,006 1,758,426
Russian Federation 10.00% 2007...................................... 270,000 238,950
State of Israel 6.38% 2005.......................................... 635,000 626,802
Tucuman Province Secured Medium Term 9.45% 2004..................... 163,929 160,650
-------------
8,826,464
-------------
REAL ESTATE -- 0.7%
Real Estate Investment Trusts -- 0.7%
Chelsea GCA Realty, Inc. 7.75% 2001................................. 570,000 587,317
Dynex Capital Corp. 7.88% 2002...................................... 750,000 756,795
Felcor Suites LP 7.38% 2004......................................... 705,000 705,296
Liberty Property Trust 7.10% 2004................................... 640,000 650,105
Tanger Properties Ltd. 8.75% 2001................................... 760,000 781,850
-------------
3,481,363
-------------
U.S. GOVERNMENT & AGENCIES -- 16.2%
U.S. Government & Agencies -- 16.2%
Federal Home Loan Mortgage Corp. 5.50% 2008......................... 1,971,071 1,882,037
Federal Home Loan Mortgage Corp. 6.35% 2018......................... 3,000,000 3,001,860
Federal Home Loan Mortgage Corp. 6.50% 2099 TBA..................... 5,000,000 4,985,900
Federal Home Loan Mortgage Corp. 7.00% 1999 TBA..................... 4,000,000 4,047,480
Federal Home Loan Mortgage Corp. 7.50% 2099 TBA..................... 3,000,000 3,063,750
Federal National Mortgage Association 6.50% 2025.................... 542,378 533,906
Federal National Mortgage Association 6.50% 2025.................... 637,626 627,667
</TABLE>
---------------------
37
<PAGE> 38
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT & AGENCIES (continued)
U.S. Government & Agencies (continued)
Federal National Mortgage Association 6.50% 2025.................... $ 751,154 $ 739,421
Federal National Mortgage Association 6.50% 2026.................... 993,826 976,126
Federal National Mortgage Association 6.50% 2099.................... 1,000,000 980,620
Federal National Mortgage Association 6.50% 2099.................... 4,000,000 4,000,000
Federal National Mortgage Association 7.00% 2024.................... 1,232,926 1,185,544
Federal National Mortgage Association 7.00% 2099.................... 12,000,000 12,022,440
Government National Mortgage Association 7.00% 2023................. 393,293 394,398
Government National Mortgage Association 7.00% 2023................. 222,057 222,681
Government National Mortgage Association 7.00% 2023................. 544,591 546,121
Government National Mortgage Association 7.00% 2023................. 929,925 935,439
Government National Mortgage Association 7.00% 2023................. 231,513 232,164
Government National Mortgage Association 7.00% 2023................. 458,785 461,506
Government National Mortgage Association 7.00% 2023................. 549,756 553,016
Government National Mortgage Association 7.00% 2023................. 546,439 547,975
Government National Mortgage Association 7.00% 2023................. 190,334 190,869
Government National Mortgage Association 7.00% 2023................. 259,920 261,462
Government National Mortgage Association 7.00% 2023................. 62,125 62,494
Government National Mortgage Association 7.00% 2023................. 491,746 494,971
Government National Mortgage Association 7.50% 2023................. 862,056 881,987
Government National Mortgage Association 7.50% 2099 TBA............. 8,000,000 8,160,000
Government National Mortgage Association 8.00% 2026................. 216,701 224,082
Government National Mortgage Association 8.00% 2026................. 683,849 707,140
Government National Mortgage Association 8.00% 2099 TBA............. 3,000,000 3,102,180
United States Treasury Bonds 7.63% 2025............................. 1,070,000 1,281,828
United States Treasury Bonds 7.88% 2021@............................ 2,510,000 3,045,333
United States Treasury Bonds 8.13% 2021............................. 200,000 248,968
United States Treasury Bonds 8.75% 2020............................. 6,360,000 8,369,378
United States Treasury Bonds Strip zero coupon 2004................. 15,690,000 10,452,835
United States Treasury Bonds Strip zero coupon 2017................. 50,000 14,997
United States Treasury Bonds Strip zero coupon 2019................. 40,000 10,423
United States Treasury Bonds Strip zero coupon 2020................. 7,920,000 2,003,760
United States Treasury Bonds Strip zero coupon 2021................. 1,000,000 230,270
United States Treasury Bonds Strip zero coupon 2005................. 2,800,000 1,809,752
United States Treasury Notes 5.63% 2000............................. 1,850,000 1,839,307
-------------
85,332,087
-------------
UTILITIES -- 0.5%
Electric Utilities -- 0.5%
Central Maine Power Co. 7.45% 1999.................................. 885,000 892,744
Korea Electric Power Corp. 7.40% 2016............................... 607,862 651,847
Niagara Mohawk Power Corp. 6.88% 2003............................... 870,000 868,921
Gas & Pipeline Utilities -- 0.0%
Bridas Corp. 9.50% 1999*............................................ 130,000 131,137
Bridas Corp. 12.50% 1999............................................ 60,000 63,545
-------------
2,608,194
-------------
TOTAL BONDS & NOTES (cost $181,768,321)............................. 184,314,058
-------------
TOTAL INVESTMENT SECURITIES (cost $446,573,914)..................... 497,266,007
-------------
</TABLE>
- ---------------------
38
<PAGE> 39
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 1.9% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 0.7%
Advanta Corporation Medium Term Notes 7.00% due 9/16/98............. $ 1,350,000 $ 1,351,013
Arkla, Inc. 9.20% due 12/18/97...................................... 250,000 250,290
Blockbuster Entertainment Corp. 6.63% due 2/15/98................... 580,000 579,919
General Motors Acceptance Corp. 7.63% due 3/9/98.................... 585,000 587,445
Tele-Communications, Inc. 7.13% due 2/2/98.......................... 1,000,000 1,000,770
-------------
3,769,437
-------------
FOREIGN SHORT-TERM NOTES -- 1.2%
Banco Nacional de Desenvolvimento Economico e Social 10.38% due
4/27/98........................................................... 220,000 222,200
Empresa Col de Petroleos 7.25% due 7/8/98........................... 240,000 240,600
Empresas Ica Sociedad ADS 9.75% due 2/11/98......................... 1,810,000 1,823,575
Globo Participacoes Limitada zero coupon due 4/20/98(1)............. 280,000 270,200
Nacional Financiera, Inc. 5.88% due 2/17/98......................... 310,000 309,031
Nacional Financiera, Inc. 8.13% due 4/9/98*......................... 160,000 159,800
Petroleo Brasileiro SA 7.25% due 2/6/98............................. 250,000 249,089
Polysindo Eka Perkasa zero coupon due 11/19/98(1)................... 1,000,000 849,890
Polysindo Eka Perkasa zero coupon due 7/14/98....................... 1,000,000 906,144
Republic of Argentina zero coupon due 3/20/98....................... 800,000 779,785
Republic of Argentina zero coupon due 10/16/98...................... 50,000 46,234
Republic of Argentina zero coupon due 4/4/98(1)..................... 110,170 109,895
Republic of Argentina zero coupon due 4/6/98(1)..................... 105,800 105,535
Trikem SA 10.63% due 5/8/98(1)...................................... 380,000 355,300
-------------
6,427,278
-------------
TOTAL SHORT-TERM SECURITIES (cost $10,295,146)...................... 10,196,715
-------------
REPURCHASE AGREEMENT -- 10.0%
----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 10.0%
Agreement with State Street Bank and Trust, Co., bearing interest of
5.55% dated 11/28/97, to be repurchased 12/01/97 in the amount of
$52,528,283 and collateralized by $40,990,000 U.S. Treasury Note
8.5% due 2/15/20 approximate aggregate value $53,525,366 (cost
$52,504,000)@..................................................... 52,504,000 52,504,000
-------------
TOTAL INVESTMENTS --
(cost $509,364,650) 106.3% 559,966,722
Total currency swap agreement, at value(3)-- (0.00) (8,410)
Liabilities in excess of other assets -- (6.3) (33,372,785)
------ -------------
NET ASSETS -- 100.0% $526,585,527
====== =============
</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, 1997
(3) The Portfolio entered into a currency swap agreement with
Swiss Bank Corporation ("Swiss Bank"). Under the agreement the
Portfolio will pay Swiss Bank 3,300,000 Yen each year
commencing September 6, 1997 until September 6, 2000, with an
additional payment of 60,000,000 Yen due September 6, 2000. In
return, Swiss Bank will pay the Portfolio $21,570 on March 6
and September 6 each year commencing March 6, 1997 until
September 6, 2000 with an additional payment of $488,003 due
September 6, 2000.
ADS -- American Depository Shares
JPY -- Japanese Yen
@ The security or a portion thereof represents collateral for the
currency swap agreement and the following open futures
contracts:
---------------------
39
<PAGE> 40
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
------------------------------------------------------------------------------------------------------------
UNREALIZED
NUMBER OF EXPIRATION VALUE AT VALUE AS OF APPRECIATION/
CONTRACTS DESCRIPTION DATE TRADE DATE NOVEMBER 30, 1997 DEPRECIATION
------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
18 Long 90 Day Euro Dollar......... December 1997 $ 4,228,569 $ 4,234,726 $ 6,157
45 Long 90 Day Euro Dollar......... December 1997 4,871,441 4,864,219 (7,222)
5 Long 90 Day Euro Dollar......... March 1998 1,174,532 1,176,812 2,280
4 Long 90 Day Euro Dollar......... June 1998 936,725 940,900 5,175
5 Long 90 Day Euro Dollar......... September 1998 1,172,657 1,175,375 2,718
41 Short 90 Day Euro Dollar......... December 1998 4,641,885 4,886,688 244,803
10 Short U.S. 2 Year Note........... March 1998 2,073,500 2,072,812 (688)
31 Short U.S. 10 Year Note.......... March 1998 3,458,633 3,452,625 (6,008)
-------------
Net Unrealized Appreciation..................................................... $ 247,215
=============
</TABLE>
-----------------------------
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.
See Notes to Financial Statements
- ---------------------
40
<PAGE> 41
- ---------------------
SUNAMERICA SERIES TRUST
UTILITY PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 80.0% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER STAPLES -- 0.7%
Food, Beverage & Tobacco -- 0.7%
RJR Nabisco Holdings Corp. ............................................ 4,600 $ 167,612
-------------
ENERGY -- 4.2%
Energy Sources -- 4.2%
Atlantic Richfield Co. ................................................ 1,800 146,700
Sonat, Inc. ........................................................... 9,800 426,912
Texaco, Inc. .......................................................... 2,200 124,300
Ultramar Diamond Shamrock Corp.+....................................... 10,900 331,769
-------------
1,029,681
-------------
INDUSTRIAL & COMMERCIAL -- 0.8%
Multi-Industry -- 0.8%
Viag AG................................................................ 400 203,278
-------------
INFORMATION TECHNOLOGY -- 2.7%
Telecommunications -- 2.7%
U.S. West Communications Group......................................... 14,500 655,219
-------------
REAL ESTATE -- 8.4%
Real Estate Investment Trusts -- 8.4%
Associated Estates Realty Corp. ....................................... 10,200 230,138
Avalon Properties, Inc. ............................................... 5,100 156,825
Boston Properties, Inc. ............................................... 7,100 231,637
Duke Realty Investments, Inc. ......................................... 13,300 305,900
Equity Residential Properties Trust.................................... 4,500 225,000
Liberty Property Trust................................................. 6,100 170,419
Meditrust Corp. ....................................................... 8,977 341,126
Price REIT, Inc. ...................................................... 2,600 102,700
Security Capital Industrial Trust...................................... 2,300 57,931
Security Capital Pacific Trust......................................... 8,614 209,428
-------------
2,031,104
-------------
UTILITIES -- 63.2%
Electric Utilities -- 32.2%
Central & South West Corp. ............................................ 5,100 127,500
Cinergy Corp. ......................................................... 9,400 334,875
DPL, Inc. ............................................................. 16,700 438,375
DQE, Inc. ............................................................. 13,500 448,031
Duke Energy Corp. ..................................................... 10,768 559,936
Electric de Portugal................................................... 9,680 174,960
Entergy Corp. ......................................................... 21,700 564,200
Florida Progress Corp. ................................................ 3,400 120,488
FPL Group, Inc. ....................................................... 12,500 699,219
Montana Power Co. ..................................................... 6,900 188,887
National Power PLC Corp. ADR........................................... 3,400 127,713
New Century Energies, Inc. ............................................ 5,000 221,250
NIPSCO Industries, Inc. ............................................... 12,700 594,519
PacifiCorp............................................................. 24,600 573,487
Pinnacle West Capital Corp. ........................................... 11,900 458,894
</TABLE>
---------------------
41
<PAGE> 42
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Electric Utilities (continued)
Potomac Electric Power Co. ............................................ 1,000 $ 24,750
Public Service Enterprise Group, Inc. ................................. 5,300 154,694
Puget Sound Energy, Inc. .............................................. 11,100 306,637
Southern Co. .......................................................... 19,400 465,600
TECO Energy, Inc. ..................................................... 16,600 425,375
Texas Utilities Co. ................................................... 13,000 520,000
Union Electric Co. .................................................... 5,000 199,062
UtiliCorp United, Inc. ................................................ 3,700 126,494
Gas & Pipeline Utilities -- 18.6%
AGL Resources, Inc. ................................................... 1,500 29,438
American Water Works, Inc. ............................................ 2,400 68,850
Atmos Energy Corp. .................................................... 1,400 37,188
CMS Energy Corp. ...................................................... 19,600 771,750
Columbia Gas Systems, Inc. ............................................ 1,800 130,950
Consolidated Natural Gas Co. .......................................... 8,700 525,262
El Paso Natural Gas Co. ............................................... 5,600 343,700
Enron Corp. ........................................................... 12,200 472,750
Keyspan Energy Corp. .................................................. 2,900 96,606
MAPCO, Inc. ........................................................... 3,500 150,938
MCN Corp. ............................................................. 15,500 591,906
New Jersey Resources Corp. ............................................ 1,100 38,294
Pacific Enterprises.................................................... 15,300 541,237
Pacific Gas & Electric Co. ............................................ 11,500 324,875
SCANA Corp............................................................. 9,100 251,387
Williams Cos., Inc. ................................................... 3,050 162,984
Telephone -- 12.4%
Ameritech Corp. ....................................................... 2,800 215,775
Bell Atlantic Corp. ................................................... 5,000 446,250
BellSouth Corp. ....................................................... 7,200 394,200
Cincinnati Bell, Inc. ................................................. 1,500 44,250
GTE Corp. ............................................................. 7,300 369,106
MCI Communications Corp. .............................................. 10,600 465,738
SBC Communications, Inc. .............................................. 7,600 553,375
Sprint Corp. .......................................................... 8,900 521,206
-------------
15,402,961
-------------
TOTAL COMMON STOCK (cost $17,496,482).................................. 19,489,855
-------------
PREFERRED STOCK -- 8.3%
----------------------------------------------------------------------------------------------------
ENERGY -- 1.2%
Energy Sources -- 1.2%
Unocal Capital Trust 6.25%............................................. 5,000 288,125
-------------
FINANCE -- 3.5%
Banks -- 1.0%
National Australia Bank Ltd. 7.88%..................................... 8,500 239,062
Financial Services -- 2.5%
Merrill Lynch & Co., 6.25%............................................. 6,000 210,000
Salomon, Inc. 6.25%.................................................... 6,800 387,600
-------------
836,662
-------------
</TABLE>
- ---------------------
42
<PAGE> 43
<TABLE>
<CAPTION>
PREFERRED STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS -- 0.4%
Metals & Minerals -- 0.4%
Coeur D' Alene Mines Corp. 7.00%....................................... 8,100 $ 106,819
-------------
UTILITIES -- 3.2%
Electric Utilities -- 0.8%
CalEnergy Capital Trust II 6.25%....................................... 4,000 197,500
Gas & Pipeline Utilities -- 2.4%
MCN Financing III 8.00%................................................ 3,000 179,250
Williams Cos., Inc. 3.50%.............................................. 3,300 413,738
-------------
790,488
-------------
TOTAL PREFERRED STOCK (cost $1,974,598)................................ 2,022,094
-------------
<CAPTION>
PRINCIPAL
CONVERTIBLE BONDS -- 0.5% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 0.5%
Drugs -- 0.5%
Roche Holdings, Inc. zero coupon 2012 (cost $121,296)*................. $ 300,000 133,874
-------------
TOTAL INVESTMENT SECURITIES (cost $19,592,376)......................... 21,645,823
-------------
SHORT-TERM SECURITIES -- 11.5%
----------------------------------------------------------------------------------------------------
TIME DEPOSIT -- 11.5%
Cayman Island Time Deposit with State Street Bank & Trust Co.
4.50% due 12/1/97 (cost $2,801,000).................................. 2,801,000 2,801,000
-------------
TOTAL INVESTMENTS --
(cost $22,393,376) 100.3% 24,446,823
Liabilities in excess of other assets -- (0.3) (80,696)
------ -------------
NET ASSETS -- 100.0% $24,366,127
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
* Resale restricted to qualified institutional buyers
See Notes to Financial Statements
---------------------
43
<PAGE> 44
- ---------------------
SUNAMERICA SERIES TRUST
GROWTH-INCOME PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 90.8% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 4.4%
Apparel & Textiles -- 0.5%
Nautica Enterprises, Inc.+........................................... 115,000 $ 3,227,188
Automotive -- 1.0%
Harley-Davidson, Inc................................................. 115,000 3,040,313
Magna International, Inc., Class A ADR............................... 46,000 2,903,750
Housing -- 1.0%
Home Depot, Inc...................................................... 115,000 6,432,812
Retail -- 1.9%
Dayton Hudson Corp................................................... 77,000 5,115,687
Kohl's Corp.+........................................................ 44,000 3,184,500
Kroger Co.+.......................................................... 110,000 3,788,125
----------
27,692,375
----------
CONSUMER STAPLES -- 13.1%
Food, Beverage & Tobacco -- 7.6%
Campbell Soup Co..................................................... 102,000 5,712,000
Coca-Cola Co......................................................... 250,000 15,625,000
Coca-Cola Enterprises, Inc........................................... 110,000 3,361,875
Nabisco Holdings Corp., Class A...................................... 93,000 4,336,125
Philip Morris Cos., Inc.............................................. 360,000 15,660,000
Tyson Foods, Inc., Class A........................................... 145,000 2,628,125
Household Products -- 5.5%
Colgate-Palmolive Co................................................. 93,000 6,213,562
Estee Lauder Cos., Inc., Class A..................................... 59,900 3,208,394
Gillette Co.......................................................... 79,700 7,357,306
Procter & Gamble Co.................................................. 146,000 11,141,625
Sunbeam Corp......................................................... 83,000 3,657,188
United States Industries, Inc.+...................................... 97,800 2,518,350
----------
81,419,550
----------
ENERGY -- 5.7%
Energy Services -- 1.8%
BJ Services Co.+..................................................... 38,000 2,728,875
Nabors Industries, Inc.+............................................. 90,000 3,155,625
Noble Drilling Corp.+................................................ 100,000 3,006,250
Transocean Offshore, Inc............................................. 46,100 2,186,869
Energy Sources -- 3.9%
Apache Corp.......................................................... 70,000 2,572,500
Gulf Canada Resources Ltd.+.......................................... 300,000 2,100,000
Texaco, Inc.......................................................... 290,000 16,385,000
USX-Marathon Group, Inc.............................................. 95,000 3,253,750
----------
35,388,869
----------
</TABLE>
- ---------------------
44
<PAGE> 45
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 16.3%
Banks -- 6.7%
Banc One Corp........................................................ 112,000 $ 5,754,000
Chase Manhattan Corp................................................. 60,000 6,517,500
Citicorp............................................................. 58,000 6,956,375
First Union Corp..................................................... 133,800 6,522,750
Fleet Financial Group, Inc........................................... 75,000 4,954,687
NationsBank Corp..................................................... 106,000 6,366,625
U.S. Bancorp......................................................... 41,000 4,410,063
Financial Services -- 6.9%
Federal National Mortgage Association................................ 130,000 6,865,625
First Data Corp...................................................... 58,000 1,642,125
Household International, Inc......................................... 29,500 3,717,000
MBNA Corp............................................................ 180,000 4,781,250
Merrill Lynch & Co., Inc............................................. 106,000 7,439,875
Morgan Stanley, Dean Witter, Discover & Co........................... 156,265 8,487,143
PennCorp Financial Group, Inc........................................ 75,000 2,535,937
Travelers Group, Inc................................................. 153,600 7,756,800
Insurance -- 2.7%
American International Group, Inc.................................... 82,000 8,266,625
Hartford Financial Services, Inc..................................... 31,000 2,596,250
PMI Group, Inc....................................................... 53,300 3,464,500
Travelers Property Casualty Corp., Class A........................... 65,000 2,583,750
----------
101,618,880
----------
HEALTHCARE -- 13.3%
Drugs -- 8.8%
Bristol-Myers Squibb Co.............................................. 130,000 12,171,250
GelTex Pharmaceuticals, Inc.+........................................ 135,000 3,780,000
IDEC Pharmaceuticals Corp.+.......................................... 85,000 2,969,688
Merck & Co., Inc..................................................... 154,900 14,647,731
Pfizer, Inc.......................................................... 155,000 11,276,250
Schering-Plough Corp................................................. 160,000 10,030,000
Health Services -- 0.6%
United Healthcare Corp............................................... 70,000 3,644,375
Medical Products -- 3.9%
Abbott Laboratories, Inc............................................. 97,000 6,305,000
Centocor, Inc.+...................................................... 77,200 3,358,200
Genzyme Corp......................................................... 92,000 2,466,750
Johnson & Johnson Co................................................. 104,000 6,545,500
Medtronic, Inc....................................................... 112,700 5,381,425
----------
82,576,169
----------
INDUSTRIAL & COMMERCIAL -- 9.6%
Aerospace & Military Technology -- 2.4%
AlliedSignal, Inc.................................................... 180,000 6,682,500
Boeing Co............................................................ 100,000 5,312,500
Gulfstream Aerospace Corp.+.......................................... 105,000 3,084,375
Business Services -- 0.4%
USA Waste Services, Inc.+............................................ 65,000 2,149,062
Electrical Equipment -- 3.5%
General Electric Co.................................................. 290,000 21,387,500
Machinery -- 0.9%
Applied Materials, Inc.+............................................. 174,000 5,742,000
</TABLE>
---------------------
45
<PAGE> 46
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Multi-Industry -- 1.4%
Tyco International Ltd............................................... 131,800 $ 5,173,150
United Technologies Corp............................................. 50,000 3,746,875
Transportation -- 1.0%
CNF Transportation, Inc.............................................. 80,000 3,480,000
Union Pacific Corp................................................... 1 60
Wisconsin Central Transportation Corp.+.............................. 95,000 2,861,875
----------
59,619,897
----------
INFORMATION & ENTERTAINMENT -- 6.6%
Broadcasting & Media -- 2.9%
Gannett Co., Inc..................................................... 66,000 3,832,125
Liberty Media Group, Corp., Class A+................................. 128,975 4,352,906
New York Times Co., Class A.......................................... 44,000 2,612,500
Reuters Holdings PLC, Class B ADR.................................... 66,000 4,463,250
Scripps (E.W) Co., Class A........................................... 75,000 3,154,688
Leisure & Tourism -- 3.7%
Carnival Corp., Class A.............................................. 95,200 5,146,750
Disney (Walt) Co..................................................... 110,000 10,443,125
US Airways Group, Inc.+.............................................. 75,000 4,134,375
Viad Corp............................................................ 160,000 3,050,000
----------
41,189,719
----------
INFORMATION TECHNOLOGY -- 16.0%
Communication Equipment -- 2.5%
ADC Telecommunications, Inc.+........................................ 75,000 2,789,063
Cox Communications, Inc., Class A+................................... 110,000 3,733,125
DSC Communications Corp.+............................................ 100,000 2,256,250
Northern Telecom Ltd................................................. 40,400 3,628,425
Tellabs, Inc.+....................................................... 60,000 3,120,000
Computers & Business Equipment -- 2.8%
Compaq Computer Corp................................................. 118,500 7,398,844
Dell Computer Corp.+................................................. 80,000 6,735,000
Staples, Inc.+....................................................... 110,000 3,100,625
Electronics -- 4.0%
Altera Corp.+........................................................ 66,000 3,089,625
Intel Corp........................................................... 180,000 13,972,500
National Semiconductor Corp.+........................................ 105,000 3,478,125
Solectron Corp.+..................................................... 70,000 2,550,625
Xilinx, Inc.+........................................................ 55,000 1,900,937
Software -- 5.1%
Cisco Systems, Inc.+................................................. 100,000 8,625,000
Microsoft Corp.+..................................................... 125,000 17,687,500
Oracle Systems Corp.+................................................ 165,000 5,496,562
Telecommunications -- 1.6%
Lucent Technologies, Inc............................................. 80,000 6,410,000
Teleport Communications Group Inc., Class A+......................... 75,000 3,675,000
----------
99,647,206
----------
MATERIALS -- 1.5%
Chemicals -- 0.9%
Monsanto Co.......................................................... 120,000 5,242,500
Solutia, Inc......................................................... 24,000 547,500
</TABLE>
- ---------------------
46
<PAGE> 47
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Metals & Minerals -- 0.6%
Sealed Air Corp.+.................................................... 60,000 $ 3,412,500
-------------
9,202,500
-------------
UTILITIES -- 4.3%
Electric Utilities -- 1.8%
AES Corp.+........................................................... 70,000 2,563,750
FPL Group, Inc....................................................... 160,000 8,950,000
Gas & Pipeline Utilities -- 0.7%
CMS Energy Corp...................................................... 110,000 4,331,250
Telephone -- 1.8%
MCI Communications Corp.............................................. 130,000 5,711,875
WorldCom, Inc.+...................................................... 165,000 5,280,000
-------------
26,836,875
-------------
TOTAL INVESTMENT SECURITIES (cost $417,165,603)...................... 565,192,040
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 9.9% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 9.6%
Cayman Island Time Deposit with State Street Bank & Trust Co.
5.25% due 12/01/97 @............................................... $59,665,000 59,665,000
-------------
U.S. GOVERNMENT -- 0.3%
United States Treasury Bills 4.94% due 12/18/97 @.................... 1,665,000 1,661,116
-------------
TOTAL SHORT-TERM SECURITIES (cost $61,326,116)....................... 61,326,116
-------------
TOTAL INVESTMENTS --
(cost $478,491,719) 100.7% 626,518,156
Liabilities in excess of other assets -- (0.7) (4,455,660)
------ -------------
NET ASSETS -- 100.0% $622,062,496
====== ==============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
@ The security or a portion thereof represents collateral for the
following open futures contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
-------------------------------------------------------------------------------------------------------------
VALUE AS OF
NUMBER OF EXPIRATION VALUE AT NOVEMBER 30, UNREALIZED
CONTRACTS DESCRIPTION DATE TRADE DATE 1997 APPRECIATION
-------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
128 Long Standard & Poor's 500 Index........ December 1997 $30,368,000 $30,556,800 $188,800
===========
</TABLE>
See Notes to Financial Statements
---------------------
47
<PAGE> 48
- ---------------------
SUNAMERICA SERIES TRUST
FEDERATED VALUE PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 93.3% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 8.5%
Apparel & Textiles -- 1.3%
Russell Corp........................................................... 24,500 $ 748,781
Automotive -- 1.3%
Borg-Warner Automotive, Inc............................................ 9,100 428,838
General Motors Corp.................................................... 6,000 366,000
Housing -- 1.0%
Centex Corp............................................................ 9,000 570,375
Retail -- 4.9%
Dayton Hudson Corp..................................................... 12,600 837,112
Kmart Corp.+........................................................... 83,500 1,048,969
Wal-Mart Stores, Inc................................................... 25,500 1,018,406
-------------
5,018,481
-------------
CONSUMER STAPLES -- 9.4%
Food, Beverage & Tobacco -- 6.9%
Archer-Daniels-Midland Co.............................................. 39,500 844,312
CPC International, Inc................................................. 7,500 775,313
PepsiCo, Inc........................................................... 23,500 866,562
Philip Morris Cos., Inc................................................ 8,000 348,000
RJR Nabisco Holdings Corp.............................................. 12,500 455,469
Sara Lee Corp.......................................................... 14,500 766,688
Household Products -- 2.5%
Rubbermaid, Inc........................................................ 22,900 555,325
Unilever NV ADR........................................................ 16,000 929,000
-------------
5,540,669
-------------
ENERGY -- 12.3%
Energy Services -- 1.0%
Occidental Petroleum Corp.............................................. 20,500 608,594
Energy Sources -- 11.3%
Amerada Hess Corp...................................................... 8,000 448,000
Chevron Corp........................................................... 7,500 601,406
Exxon Corp............................................................. 9,500 579,500
Houston Industries, Inc................................................ 24,000 568,500
Mobil Corp............................................................. 8,500 611,469
Royal Dutch Petroleum Co............................................... 9,500 500,531
Sun Co., Inc........................................................... 28,500 1,152,469
Texaco, Inc............................................................ 9,000 508,500
USX-Marathon Group, Inc................................................ 33,000 1,130,250
YPF Sociedad Anonima ADR............................................... 16,500 553,781
-------------
7,263,000
-------------
FINANCE -- 11.4%
Banks -- 1.1%
Republic New York Corp................................................. 6,000 652,500
</TABLE>
- ---------------------
48
<PAGE> 49
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services -- 4.1%
Bear Stearns Cos., Inc................................................. 14,000 $ 581,000
H&R Block, Inc......................................................... 12,500 512,500
Morgan Stanley, Dean Witter, Discover and Co........................... 11,500 624,594
Nationwide Financial Services, Inc., Class A........................... 7,000 239,312
Travelers Group, Inc................................................... 8,500 429,250
Insurance -- 6.2%
Allstate Corp.......................................................... 6,000 515,250
CIGNA Corp............................................................. 7,000 1,170,750
General Re Corp........................................................ 2,600 516,100
Loews Corp............................................................. 4,500 477,563
Marsh & McLennan Cos., Inc............................................. 13,500 1,004,906
-------------
6,723,725
-------------
HEALTHCARE -- 9.0%
Drugs -- 5.2%
Bristol-Myers Squibb Co................................................ 13,000 1,217,125
Merck & Co., Inc....................................................... 6,000 567,375
Perrigo Co.+........................................................... 15,500 220,875
Pharmacia & Upjohn, Inc................................................ 32,500 1,096,875
Health Services -- 1.1%
United Healthcare Corp................................................. 8,500 442,531
Vencor, Inc.+.......................................................... 9,000 218,250
Medical Products -- 2.7%
Abbott Laboratories, Inc............................................... 9,000 585,000
Biomet, Inc............................................................ 15,400 367,675
US Surgical Corp....................................................... 23,500 619,813
-------------
5,335,519
-------------
INDUSTRIAL & COMMERCIAL -- 13.6%
Aerospace & Military Technology -- 1.0%
General Motors Corp., Class H.......................................... 8,500 569,500
Business Services -- 3.9%
Browning-Ferris Industries, Inc........................................ 14,924 532,600
Johnson Controls, Inc.................................................. 15,500 710,094
Waste Management, Inc.................................................. 43,500 1,071,187
Electrical Equipment -- 1.1%
AMP, Inc............................................................... 15,500 673,281
Machinery -- 2.1%
Cincinnati Milacron, Inc............................................... 9,600 283,800
Ingersoll-Rand Co...................................................... 24,000 981,000
Multi-Industry -- 1.9%
ITT Industries, Inc.................................................... 34,500 1,095,375
Transportation -- 3.6%
Abb Ab ADR............................................................. 4,200 520,800
AMR Corp.+............................................................. 3,700 448,394
CNF Transportation, Inc................................................ 14,400 626,400
Ryder System, Inc...................................................... 14,000 508,375
-------------
8,020,806
-------------
</TABLE>
---------------------
49
<PAGE> 50
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 2.8%
Broadcasting & Media -- 2.6%
News Corp., Ltd. ADR................................................... 4,000 $ 86,750
Readers Digest Association, Inc., Class A.............................. 24,500 586,469
Viacom, Inc., Class A+................................................. 14,500 503,875
Viacom, Inc., Class B+................................................. 10,500 367,500
Leisure & Tourism -- 0.2%
Tricon Global Restaurants, Inc.+....................................... 2,350 79,459
-------------
1,624,053
-------------
INFORMATION TECHNOLOGY -- 11.7%
Computers & Business Equipment -- 5.0%
Cabletron Systems, Inc.+............................................... 12,000 276,000
International Business Machines Corp................................... 5,500 602,594
Lexmark International Group, Inc., Class A+............................ 19,500 621,562
Seagate Technology, Inc.+.............................................. 20,000 453,750
Storage Technology Corp.+.............................................. 15,500 1,000,719
Electronics -- 1.2%
Matsushita Electric Industrial Co., Ltd. ADR........................... 4,500 697,781
Software -- 2.5%
First Data Corp........................................................ 31,500 891,844
Novell, Inc.+.......................................................... 64,000 592,000
Telecommunications -- 3.0%
Tele-Communications TCI Ventures Group, Series A+...................... 11,263 254,825
Tele-Communications, Inc., Series A+................................... 37,500 858,984
U.S. West Communications Group......................................... 14,500 655,219
-------------
6,905,278
-------------
MATERIALS -- 4.5%
Chemicals -- 2.5%
Arco Chemical Co....................................................... 6,900 316,106
Dow Chemical Co........................................................ 7,500 740,625
Eastman Kodak Co....................................................... 6,300 381,938
Forest Products -- 1.2%
Consolidated Papers, Inc............................................... 5,500 296,313
Louisiana-Pacific Corp................................................. 21,500 434,031
Metals & Minerals -- 0.8%
USX-US Steel Group, Inc................................................ 15,700 491,606
-------------
2,660,619
-------------
REAL ESTATE -- 1.2%
Real Estate Companies -- 0.3%
Security Capital Group, Inc., Class B+................................. 6,500 208,813
Real Estate Investment Trusts -- 0.9%
Boston Properties, Inc................................................. 15,500 505,687
-------------
714,500
-------------
UTILITIES -- 8.9%
Electric Utilities -- 2.0%
Entergy Corp........................................................... 23,500 611,000
Public Service Enterprise Group, Inc................................... 20,000 583,750
Gas & Pipeline Utilities -- 3.0%
Coastal Corp........................................................... 8,500 497,781
Columbia Gas Systems, Inc.............................................. 6,000 436,500
Pacific Gas & Electric Co.............................................. 29,500 833,375
</TABLE>
- ---------------------
50
<PAGE> 51
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Telephone -- 3.9%
GTE Corp............................................................... 7,000 $ 353,938
MCI Communications Corp................................................ 27,900 1,225,856
SBC Communications, Inc................................................ 9,501 691,772
-------------
5,233,972
-------------
TOTAL COMMON STOCK (cost $48,922,930).................................. 55,040,622
-------------
PREFERRED STOCK -- 1.9%
----------------------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 1.9%
Broadcasting & Media -- 1.9%
News Corp. Ltd. ADR (cost $898,748).................................... 57,000 1,125,750
-------------
TOTAL INVESTMENT SECURITIES (cost $49,821,678)......................... 56,166,372
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 5.3% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 5.3%
Cayman Island Time Deposit with State Street Bank & Trust Co. 4.50% due
12/1/97 (cost $3,130,000)............................................ $3,130,000 3,130,000
-------------
TOTAL INVESTMENTS --
(cost $52,951,678) 100.5% 59,296,372
Liabilities in excess of other assets -- (0.5) (272,428)
------ -------------
NET ASSETS -- 100.0% $59,023,944
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
51
<PAGE> 52
- ---------------------
SUNAMERICA SERIES TRUST
VENTURE VALUE PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 88.3% SHARES VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 4.2%
Apparel & Textiles -- 1.3%
Nike, Inc., Class B................................................. 296,700 $ 14,445,581
Housing -- 2.2%
Masco Corp. ........................................................ 529,100 24,933,837
Maytag Corp. ....................................................... 4,200 135,713
Retail -- 0.7%
Harcourt General, Inc. ............................................. 150,600 8,245,350
------------
47,760,481
------------
CONSUMER STAPLES -- 6.0%
Food, Beverage & Tobacco -- 6.0%
Archer-Daniels-Midland Co. ......................................... 610,920 13,058,420
Coca-Cola Co. ...................................................... 12,400 775,000
Gallaher Group PLC ADR.............................................. 4,200 90,038
Nestle SA ADR....................................................... 338,600 24,913,680
Philip Morris Cos., Inc. ........................................... 557,900 24,268,650
Tyson Foods, Inc., Class A.......................................... 276,400 5,009,750
Household Products -- 0.0%
Fortune Brands, Inc. ............................................... 4,200 151,988
------------
68,267,526
------------
ENERGY -- 9.2%
Energy Services -- 7.3%
British Petroleum Co. PLC ADR....................................... 81,995 6,805,585
Burlington Resources, Inc. ......................................... 341,300 15,187,850
Cooper Cameron Corp.+............................................... 203,300 12,388,593
EVI, Inc.+.......................................................... 165,300 8,502,619
Halliburton Co. .................................................... 494,800 26,688,275
Nabors Industries, Inc.+............................................ 44,900 1,574,306
Schlumberger Ltd. .................................................. 149,100 12,272,794
Energy Sources -- 1.9%
Amerada Hess Corp. ................................................. 1,800 100,800
Amoco Corp. ........................................................ 1,400 126,000
Atlantic Richfield Co. ............................................. 4,800 391,200
Chevron Corp. ...................................................... 8,100 649,519
Exxon Corp. ........................................................ 24,800 1,512,800
Mobil Corp. ........................................................ 2,200 158,262
Noble Affiliates, Inc. ............................................. 245,557 9,116,304
Pioneer Natural Resources Co. ...................................... 167,100 5,336,756
Sonat, Inc. ........................................................ 2,200 95,838
Tosco Corp. ........................................................ 122,800 3,998,675
------------
104,906,176
------------
FINANCE -- 32.9%
Banks -- 11.2%
Banc One Corp. ..................................................... 273,980 14,075,723
BankAmerica Corp. .................................................. 388,800 28,382,400
Barnett Banks, Inc. ................................................ 2,800 197,050
Citicorp. .......................................................... 189,475 22,725,158
First Union Corp. .................................................. 35,400 1,725,750
</TABLE>
- ---------------------
52
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Banks (continued)
Golden West Financial Corp. ........................................ 73,000 $ 6,542,625
U.S. Bancorp........................................................ 131,400 14,133,712
Wells Fargo & Co. .................................................. 129,000 39,635,250
Financial Services -- 12.0%
American Express Co. ............................................... 434,100 34,239,637
Donaldson, Lufkin & Jenrette, Inc. ................................. 106,800 7,783,050
Federal Home Loan Mortgage Corp. ................................... 339,600 14,008,500
Morgan (J.P.) & Co., Inc. .......................................... 81,800 9,340,537
Morgan Stanley, Dean Witter, Discover & Co. ........................ 497,425 27,016,395
State Street Corp. ................................................. 159,600 9,496,200
TCF Financial Corp. ................................................ 44,100 2,607,413
Travelers Group, Inc. .............................................. 646,995 32,673,248
Insurance -- 9.4%
20th Century Industries............................................. 147,500 3,715,156
Allstate Corp. ..................................................... 204,495 17,561,008
American International Group, Inc. ................................. 62,700 6,320,944
Berkley (W.R.) Corp. ............................................... 201,600 8,391,600
Chubb Corp. ........................................................ 180,700 12,818,406
General Re Corp..................................................... 177,500 35,233,750
Progressive Corp., Ohio............................................. 100,900 10,291,800
Transatlantic Holdings, Inc. ....................................... 144,000 10,287,000
UNUM Corp. ......................................................... 56,000 2,656,500
Investment Companies -- 0.3%
Morgan Stanley Asia-Pacific Fund.................................... 475,467 3,536,286
------------
375,395,098
------------
HEALTHCARE -- 5.3%
Drugs -- 4.1%
American Home Products Corp. ....................................... 2,200 153,725
Bristol-Myers Squibb Co. ........................................... 51,600 4,831,050
Lilly (Eli) & Co. .................................................. 60,200 3,796,362
Merck & Co., Inc. .................................................. 25,100 2,373,519
Pfizer, Inc. ....................................................... 185,200 13,473,300
SmithKline Beecham PLC ADR.......................................... 446,600 22,162,525
Medical Products -- 1.2%
Johnson & Johnson Co. .............................................. 55,700 3,505,619
Novartis AG ADR..................................................... 125,900 10,058,302
------------
60,354,402
------------
INDUSTRIAL & COMMERCIAL -- 6.2%
Aerospace & Military Technology -- 0.8%
Boeing Co. ......................................................... 170,300 9,047,188
Business Services -- 0.0%
ACNielsen Corp.+.................................................... 133 2,984
Cognizant Corp.+.................................................... 400 17,150
Dun & Bradstreet Corp. ............................................. 400 11,200
Waste Management, Inc. ............................................. 1,400 34,475
</TABLE>
---------------------
53
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Electrical Equipment -- 0.1%
General Electric Co. ............................................... 12,200 $ 899,750
Machinery -- 1.1%
Smith International, Inc.+.......................................... 194,200 12,428,800
Transportation -- 4.2%
Burlington Northern Santa Fe........................................ 273,400 25,016,100
Illinois Central Corp. ............................................. 211,650 7,632,628
Union Pacific Corp. ................................................ 253,400 15,204,000
------------
70,294,275
------------
INFORMATION & ENTERTAINMENT -- 5.6%
Broadcasting & Media -- 2.8%
AirTouch Communications, Inc.+...................................... 413,600 16,233,800
Gannett Co., Inc. .................................................. 188,600 10,950,588
Tribune Co. ........................................................ 89,800 5,062,475
Washington Post Co., Class B........................................ 100 45,525
Leisure & Tourism -- 2.8%
McDonald's Corp. ................................................... 661,800 32,097,300
------------
64,389,688
------------
INFORMATION TECHNOLOGY -- 13.9%
Communication Equipment -- 0.2%
Molex, Inc. ........................................................ 66,225 2,520,689
Computers & Business Equipment -- 7.3%
Hewlett-Packard Co. ................................................ 630,900 38,524,332
International Business Machines Corp. .............................. 405,200 44,394,725
Electronics -- 5.0%
Intel Corp. ........................................................ 154,400 11,985,300
Motorola, Inc. ..................................................... 233,200 14,662,450
Novellus Systems, Inc.+............................................. 188,600 7,096,075
Texas Instruments, Inc. ............................................ 472,000 23,246,000
Telecommunications -- 1.4%
360 Communications Co.+............................................. 298,600 5,748,050
Globalstar Telecommunications Ltd.+................................. 21,148 1,048,148
Loral Space & Communications Corp.+................................. 83,200 1,846,000
Qwest Communications International, Inc.+........................... 129,500 7,073,937
------------
158,145,706
------------
MATERIALS -- 1.0%
Chemicals -- 0.0%
Dow Chemical Co. ................................................... 600 59,250
Forest Products -- 0.0%
International Paper Co. ............................................ 1,300 61,669
Union Camp Corp. ................................................... 2,000 120,125
Metals & Minerals -- 1.0%
Martin Marietta Materials, Inc. .................................... 312,300 10,813,387
------------
11,054,431
------------
REAL ESTATE -- 4.0%
Real Estate Companies -- 0.8%
Crescent Operating, Inc.+........................................... 45,330 759,277
The Rouse Co. ...................................................... 272,700 8,590,050
</TABLE>
- ---------------------
54
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE (continued)
Real Estate Investment Trusts -- 3.2%
Crescent Real Estate Equities Co. .................................. 449,400 $ 17,301,900
Federal Realty Investment Trust..................................... 47,800 1,203,963
General Growth Properties........................................... 224,500 8,278,437
Kimco Realty Corp. ................................................. 10,550 362,656
Saul Centers, Inc. ................................................. 30,500 537,563
Simon DeBartolo Group, Inc. ........................................ 400 13,075
United Dominion Realty Trust, Inc. ................................. 52,200 766,688
Vornado Realty Trust................................................ 159,400 7,143,112
Weingarten Realty Investors......................................... 15,200 633,650
------------
45,590,371
------------
UTILITIES -- 0.0%
Electric Utilities -- 0.0%
Carolina Power & Light Co. ......................................... 900 33,637
Duke Energy Corp. .................................................. 1,400 72,800
Edison International................................................ 700 18,769
Enova Corp. ........................................................ 500 13,000
New England Electric Systems........................................ 500 20,625
Southern Co. ....................................................... 1,600 38,400
Wisconsin Energy Corp. ............................................. 800 21,600
Telephone -- 0.0%
SBC Communications, Inc. ........................................... 1,200 87,375
------------
306,206
------------
TOTAL COMMON STOCK (cost $765,631,967).............................. 1,006,464,360
------------
PREFERRED STOCK -- 0.5%
-----------------------------------------------------------------------------------------------------
FINANCE -- 0.3%
Banks -- 0.1%
Banc One Corp., Series convertible 3.50%............................ 7,500 735,938
Financial Services -- 0.2%
Devon Financing Trust convertible 6.50%............................. 30,700 2,256,450
------------
2,992,388
------------
REAL ESTATE -- 0.1%
Real Estate Companies -- 0.0%
Rouse Co., Series B 3.00%........................................... 10,000 500,000
Real Estate Investment Trusts -- 0.1%
Vornado Realty Trust, Series A 6.50%................................ 9,100 609,131
------------
1,109,131
------------
INFORMATION & ENTERTAINMENT -- 0.1%
Broadcasting & Media -- 0.1%
AirTouch Communications, Inc., Class C convertible 4.25%............ 24,597 1,488,118
------------
TOTAL PREFERRED STOCK (cost $4,810,031)............................. 5,589,637
------------
TOTAL INVESTMENT SECURITIES (cost $770,441,998)..................... 1,012,053,998
------------
</TABLE>
---------------------
55
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<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 11.0% AMOUNT VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
FEDERAL AGENCY OBLIGATIONS -- 11.0%
Federal Home Loan Mortgage Discount Notes 5.46% 12/01/97............ $12,275,000 $ 12,275,000
Federal Home Loan Mortgage Discount Notes 5.48% 12/02/97............ 20,000,000 19,996,956
Federal Home Loan Mortgage Discount Notes 5.48% 12/03/97............ 26,080,000 26,072,060
Federal Home Loan Mortgage Discount Notes 5.48% 12/05/97............ 12,210,000 12,202,565
Federal Home Loan Mortgage Discount Notes 5.48% 12/10/97............ 18,900,000 18,874,107
Federal National Mortgage Association Discount Notes 5.50%
12/11/97.......................................................... 13,820,000 13,798,886
Federal National Mortgage Association Discount Notes 5.60%
12/11/97.......................................................... 22,920,000 22,884,347
--------------
TOTAL SHORT-TERM SECURITIES (cost $126,103,921)..................... 126,103,921
--------------
TOTAL INVESTMENTS --
(cost $896,545,919) 99.8% 1,138,157,918
Other assets less liabilities -- 0.2 1,895,369
------ --------------
NET ASSETS -- 100.0% $1,140,053,287
====== ==============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
- ---------------------
56
<PAGE> 57
- ---------------------
SUNAMERICA SERIES TRUST
PUTNAM GROWTH PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 94.8% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 13.1%
Apparel & Textiles -- 0.9%
Liz Claiborne, Inc................................................... 40,800 $ 2,050,200
Housing -- 0.9%
Masco Corp........................................................... 44,700 2,106,488
Retail -- 11.3%
Consolidated Stores Corp.+........................................... 57,750 2,808,094
Costco Cos., Inc.+................................................... 83,000 3,677,937
CVS Corp............................................................. 87,139 5,783,851
Dayton Hudson Corp................................................... 41,700 2,770,444
Safeway, Inc.+....................................................... 27,300 1,658,475
TJX Cos., Inc........................................................ 67,000 2,311,500
Wal-Mart Stores, Inc................................................. 131,700 5,259,769
Walgreen Co.......................................................... 75,100 2,417,281
-------------
30,844,039
-------------
CONSUMER STAPLES -- 8.6%
Food, Beverage & Tobacco -- 3.3%
Campbell Soup Co..................................................... 29,400 1,646,400
Coca-Cola Enterprises, Inc........................................... 79,900 2,441,944
ConAgra, Inc......................................................... 64,000 2,300,000
Sara Lee Corp........................................................ 26,300 1,390,612
Household Products -- 5.3%
Clorox Co............................................................ 35,200 2,732,400
Colgate-Palmolive Co................................................. 37,300 2,492,106
Estee Lauder Cos., Inc., Class A..................................... 22,500 1,205,156
Procter & Gamble Co.................................................. 78,600 5,998,163
-------------
20,206,781
-------------
ENERGY -- 6.2%
Energy Services -- 3.9%
Halliburton Co....................................................... 86,400 4,660,200
Schlumberger Ltd..................................................... 55,800 4,593,038
Energy Sources -- 2.3%
Exxon Corp........................................................... 56,500 3,446,500
Mobil Corp........................................................... 26,700 1,920,731
-------------
14,620,469
-------------
FINANCE -- 16.6%
Banks -- 4.6%
Banc One Corp........................................................ 12,000 616,500
BankAmerica Corp..................................................... 68,900 5,029,700
Barnett Banks, Inc................................................... 19,200 1,351,200
Comerica, Inc........................................................ 33,000 2,811,187
Fifth Third Bancorp.................................................. 9,400 662,700
SunTrust Banks, Inc.................................................. 5,800 411,800
</TABLE>
---------------------
57
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services -- 9.6%
American Express Co.................................................. 64,100 $ 5,055,888
Associates First Capital Corp........................................ 7,400 475,450
Franklin Resources, Inc.............................................. 19,600 1,761,550
MBNA Corp............................................................ 125,925 3,344,883
Morgan Stanley, Dean Witter, Discover & Co........................... 41,700 2,264,831
Travelers Group, Inc................................................. 105,000 5,302,500
Washington Mutual, Inc............................................... 62,400 4,313,400
Insurance -- 2.4%
American International Group, Inc.................................... 32,350 3,261,285
Conseco, Inc......................................................... 49,700 2,314,156
-------------
38,977,030
-------------
HEALTHCARE -- 13.1%
Drugs -- 12.0%
Bristol-Myers Squibb Co.............................................. 59,600 5,580,050
Cardinal Health, Inc................................................. 26,100 1,977,075
Lilly (Eli) & Co..................................................... 50,500 3,184,656
Merck & Co., Inc..................................................... 44,300 4,189,119
Pfizer, Inc.......................................................... 72,300 5,259,825
Schering-Plough Corp................................................. 52,100 3,266,019
Warner-Lambert Co.................................................... 33,100 4,629,862
Health Services -- 1.1%
HEALTHSOUTH Corp.+................................................... 100,100 2,627,625
Medical Products -- 0.0%
Guidant Corp......................................................... 1,700 109,225
-------------
30,823,456
-------------
INDUSTRIAL & COMMERCIAL -- 10.1%
Business Services -- 1.1%
Quintiles Transnational Corp.+....................................... 13,300 1,039,063
USA Waste Services, Inc.+............................................ 43,300 1,431,606
Electrical Equipment -- 5.0%
General Electric Co.................................................. 116,000 8,555,000
Westinghouse Electric Corp........................................... 102,900 3,087,000
Machinery -- 0.9%
Ingersoll-Rand Co.................................................... 54,400 2,223,600
Multi-Industry -- 3.1%
Textron, Inc......................................................... 49,600 2,932,600
Tyco International Ltd............................................... 110,200 4,325,350
-------------
23,594,219
-------------
INFORMATION & ENTERTAINMENT -- 5.1%
Broadcasting & Media -- 2.9%
Gannett Co., Inc..................................................... 89,600 5,202,400
Interpublic Group of Cos., Inc....................................... 35,600 1,706,575
Leisure & Tourism -- 2.2%
Carnival Corp., Class A.............................................. 36,300 1,962,469
Marriott International, Inc.......................................... 44,000 3,187,250
-------------
12,058,694
-------------
INFORMATION TECHNOLOGY -- 19.5%
Communication Equipment -- 1.7%
Ericsson (L.M.) Telephone Co. ADR Class B............................ 46,900 1,896,519
Tellabs, Inc.+....................................................... 40,900 2,126,800
</TABLE>
- ---------------------
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Computers & Business Equipment -- 3.8%
Compaq Computer Corp.+............................................... 41,100 $ 2,566,181
Dell Computer Corp.+................................................. 25,500 2,146,781
EMC Corp.+........................................................... 93,200 2,825,125
Hewlett-Packard Co................................................... 18,200 1,111,338
Pitney Bowes, Inc.................................................... 2,300 193,344
Electronics -- 2.4%
Applied Materials, Inc.+............................................. 34,600 1,141,800
Motorola, Inc........................................................ 40,300 2,533,862
Texas Instruments, Inc............................................... 39,200 1,930,600
Software -- 10.3%
BMC Software, Inc.+.................................................. 53,000 3,438,375
Computer Associates International, Inc............................... 70,650 3,678,216
Compuware Corp.+..................................................... 53,800 1,879,638
HBO & Co. ........................................................... 69,500 3,118,812
Microsoft Corp.+..................................................... 51,900 7,343,850
Parametric Technology Corp.+......................................... 37,400 1,891,038
PeopleSoft, Inc.+.................................................... 43,400 2,839,987
Telecommunications -- 1.3%
Lucent Technologies, Inc............................................. 30,200 2,419,775
Tele-Communications TCI Ventures Group, Series A+.................... 25,900 585,987
-------------
45,668,028
-------------
UTILITIES -- 2.5%
Telephone -- 2.5%
SBC Communications, Inc.............................................. 16,300 1,186,844
Sprint Corp.......................................................... 77,900 4,562,018
-------------
5,748,862
-------------
TOTAL INVESTMENT SECURITIES (cost $176,927,574)...................... 222,541,578
-------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 5.2% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 5.2%
Agreement with SBC Warburg, bearing interest of 5.67% dated 11/28/97,
to be repurchased 12/1/97 in the amount of $12,233,778 and
collateralized by 8,233,000 U.S. Treasury Notes 10.625% due
08/15/15 approximate aggregate value $12,473,023 (cost
$12,228,000)....................................................... $12,228,000 12,228,000
-------------
TOTAL INVESTMENTS --
(cost $189,155,574) 100.0% 234,769,578
Liabilities in excess of other assets -- 0.0 (43,364)
------ -------------
NET ASSETS -- 100.0% $234,726,214
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
59
<PAGE> 60
- ---------------------
SUNAMERICA SERIES TRUST
GROWTH/PHOENIX INVESTMENT
COUNSEL PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 98.6% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 8.1%
Housing -- 1.7%
Home Depot, Inc. ..................................................... 65,000 $ 3,635,937
Retail -- 6.4%
Borders Group, Inc.+.................................................. 50,000 1,428,125
CVS Corp. ............................................................ 60,000 3,982,500
Rite Aid Corp. ....................................................... 62,400 4,102,800
Safeway, Inc.+........................................................ 75,500 4,586,625
------------
17,735,987
------------
CONSUMER STAPLES -- 6.7%
Food, Beverage & Tobacco -- 2.6%
Philip Morris Cos., Inc. ............................................. 132,500 5,763,750
Household Products -- 4.1%
Colgate-Palmolive Co. ................................................ 34,000 2,271,625
Gillette Co. ......................................................... 48,600 4,486,388
Sunbeam Corp. ........................................................ 47,700 2,101,781
------------
14,623,544
------------
ENERGY -- 12.4%
Energy Services -- 8.4%
BJ Services Co.+...................................................... 26,000 1,867,125
Cooper Cameron Corp.+................................................. 14,400 877,500
Diamond Offshore Drilling, Inc. ...................................... 34,900 1,740,637
Halliburton Co. ...................................................... 64,900 3,500,544
Nabors Industries, Inc.+.............................................. 36,600 1,283,287
Noble Drilling Corp.+................................................. 30,600 919,913
Rowan Cos., Inc.+..................................................... 27,600 938,400
Santa Fe International Corp.+......................................... 30,100 1,262,319
Schlumberger Ltd. .................................................... 49,100 4,041,544
Transocean Offshore, Inc. ............................................ 39,700 1,883,269
Energy Sources -- 4.0%
Elf Aquitaine SA ADR.................................................. 52,800 3,022,800
Tosco Corp. .......................................................... 105,000 3,419,062
YPF Sociedad Anonima ADR.............................................. 66,300 2,225,194
------------
26,981,594
------------
FINANCE -- 15.8%
Banks -- 8.4%
AmSouth Bancorp. ..................................................... 10,000 520,625
Banco Rio de La Plata SA ADR+......................................... 65,000 816,563
BankAmerica Corp. .................................................... 57,200 4,175,600
BankBoston Corp. ..................................................... 36,900 3,288,712
Citicorp.............................................................. 22,000 2,638,625
Fleet Financial Group, Inc. .......................................... 1,900 125,519
Mellon Bank Corp. .................................................... 65,000 3,684,687
NationsBank Corp. .................................................... 51,500 3,093,219
Financial Services -- 4.9%
American Express Co. ................................................. 40,000 3,155,000
</TABLE>
- ---------------------
60
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Compass Bancshares, Inc. ............................................. 14,200 $ 568,000
Franklin Resources, Inc. ............................................. 4,100 368,487
Merrill Lynch & Co., Inc. ............................................ 30,000 2,105,625
Price (T. Rowe) Associates, Inc. ..................................... 10,100 656,500
Travelers Group, Inc. ................................................ 75,000 3,787,500
Insurance -- 2.5%
Allstate Corp. ....................................................... 45,000 3,864,375
Hartford Financial Services, Inc. .................................... 18,400 1,541,000
------------
34,390,037
------------
HEALTHCARE -- 18.1%
Drugs -- 13.6%
Bristol-Myers Squibb Co. ............................................. 36,700 3,436,038
Cardinal Health, Inc. ................................................ 44,500 3,370,875
Elan Corp. PLC ADR+................................................... 22,300 1,176,325
Lilly (Eli) & Co. .................................................... 49,700 3,134,206
Pfizer, Inc. ......................................................... 106,200 7,726,050
SmithKline Beecham PLC ADR............................................ 90,000 4,466,250
Warner-Lambert Co. ................................................... 31,900 4,462,012
Watson Pharmaceuticals, Inc.+......................................... 66,300 1,972,425
Health Services -- 1.0%
HEALTHSOUTH Corp.+.................................................... 83,900 2,202,375
Medical Products -- 3.5%
Centocor, Inc.+....................................................... 37,800 1,644,300
Guidant Corp. ........................................................ 56,400 3,623,700
Medtronic, Inc. ...................................................... 49,400 2,358,850
------------
39,573,406
------------
INDUSTRIAL & COMMERCIAL -- 6.1%
Electrical Equipment -- 2.1%
General Electric Co. ................................................. 62,500 4,609,375
Machinery -- 1.0%
Deere & Co. .......................................................... 41,100 2,252,794
Multi-Industry -- 2.1%
Tyco International Ltd. .............................................. 115,000 4,513,750
Transportation -- 0.9%
Federal Express Corp.+................................................ 30,000 2,011,875
------------
13,387,794
------------
INFORMATION & ENTERTAINMENT -- 4.6%
Broadcasting & Media -- 4.6%
AirTouch Communications, Inc.+........................................ 139,700 5,483,225
Chancellor Media Corp.+............................................... 20,800 1,249,300
Liberty Media Group Corp., Class A+................................... 97,700 3,297,375
------------
10,029,900
------------
INFORMATION TECHNOLOGY -- 23.8%
Communication Equipment -- 1.4%
CIENA Corp.+.......................................................... 57,000 3,078,000
Computers & Business Equipment -- 8.0%
EMC Corp.+............................................................ 113,000 3,425,313
International Business Machines Corp. ................................ 106,800 11,701,275
Staples, Inc.+........................................................ 83,500 2,353,656
</TABLE>
---------------------
61
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Electronics -- 7.9%
Adaptec, Inc.+........................................................ 66,400 $ 3,286,800
Linear Technology Corp. .............................................. 16,400 1,055,750
National Semiconductor Corp.+......................................... 92,200 3,054,125
Philips Electronics NV ADR............................................ 113,200 7,584,400
Texas Instruments, Inc. .............................................. 45,000 2,216,250
Software -- 5.4%
BMC Software, Inc.+................................................... 35,200 2,283,600
Cisco Systems, Inc.+.................................................. 33,500 2,889,375
Compuware Corp.+...................................................... 67,400 2,354,787
HBO & Co.+............................................................ 75,100 3,370,112
J.D. Edwards & Co.+................................................... 6,000 205,500
Yahoo!, Inc.+......................................................... 12,100 618,613
Telecommunications -- 1.1%
Lucent Technologies, Inc. ............................................ 31,700 2,539,963
------------
52,017,519
------------
MATERIALS -- 0.5%
Chemicals -- 0.5%
Solutia, Inc. ........................................................ 49,000 1,117,813
------------
UTILITIES -- 2.5%
Telephone -- 2.5%
AT&T Corp. ........................................................... 99,300 5,548,387
------------
TOTAL INVESTMENT SECURITIES (cost $190,643,244)....................... 215,405,981
------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 1.0% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 1.0%
International Lease Finance Corp. 5.52% due 12/2/97................... $1,615,000 1,614,752
Koch Industries 5.53% due 12/1/97..................................... 600,000 600,000
------------
TOTAL CORPORATE SHORT-TERM NOTES (cost $2,214,752).................... 2,214,752
------------
TOTAL SHORT-TERM SECURITIES (cost $2,214,752)......................... 2,214,752
------------
TOTAL INVESTMENTS --
(cost $192,857,996) 99.6% 217,620,733
Other assets less liabilities -- 0.4 875,085
------ ------------
NET ASSETS -- 100.0% $218,495,818
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
- ---------------------
62
<PAGE> 63
- ---------------------
SUNAMERICA SERIES TRUST
ALLIANCE GROWTH PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 95.7% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 6.7%
Automotive -- 0.7%
Ford Motor Co......................................................... 104,900 $ 4,510,700
Housing -- 3.8%
Home Depot, Inc....................................................... 482,600 26,995,438
Retail -- 2.2%
Dayton Hudson Corp.................................................... 138,900 9,228,169
Kohl's Corp.+......................................................... 90,300 6,535,462
------------
47,269,769
------------
CONSUMER STAPLES -- 8.1%
Food, Beverage & Tobacco -- 6.9%
Campbell Soup Co...................................................... 106,400 5,958,400
Coca-Cola Co.......................................................... 157,600 9,850,000
Philip Morris Cos., Inc............................................... 758,400 32,990,400
Household Products -- 1.2%
Colgate-Palmolive Co.................................................. 37,000 2,472,062
Gillette Co........................................................... 60,600 5,594,138
------------
56,865,000
------------
ENERGY -- 1.7%
Energy Services -- 1.5%
Halliburton Co........................................................ 193,100 10,415,331
Energy Sources -- 0.2%
Texaco, Inc........................................................... 21,700 1,226,050
------------
11,641,381
------------
FINANCE -- 24.3%
Banks -- 7.8%
Chase Manhattan Corp.................................................. 98,594 10,709,773
Citicorp.............................................................. 168,700 20,233,456
NationsBank Corp...................................................... 107,200 6,438,700
Norwest Corp.......................................................... 262,040 9,810,122
U.S. Bancorp.......................................................... 70,275 7,558,955
Financial Services -- 14.7%
Associates First Capital Corp., Class A............................... 70,300 4,516,775
Federal National Mortgage Association................................. 261,100 13,789,344
First Data Corp....................................................... 153,400 4,343,138
Household International, Inc.......................................... 48,600 6,123,600
MBNA Corp............................................................. 1,126,500 29,922,656
Merrill Lynch & Co., Inc.............................................. 238,900 16,767,794
Morgan Stanley, Dean Witter, Discover & Co............................ 403,800 21,931,387
Washington Mutual, Inc................................................ 88,000 6,083,000
Insurance -- 1.8%
American International Group, Inc..................................... 51,100 5,151,519
Progressive Corp...................................................... 76,100 7,762,200
------------
171,142,419
------------
</TABLE>
---------------------
63
<PAGE> 64
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 11.5%
Drugs -- 8.5%
Merck & Co., Inc...................................................... 259,200 $ 24,510,600
Pfizer, Inc........................................................... 193,000 14,040,750
Schering-Plough Corp.................................................. 337,100 21,131,956
Health Services -- 2.9%
United Healthcare Corp................................................ 392,800 20,450,150
Medical Products -- 0.1%
Medtronic, Inc........................................................ 25,000 1,193,750
------------
81,327,206
------------
INDUSTRIAL & COMMERCIAL -- 7.1%
Machinery -- 0.1%
Applied Materials, Inc.+.............................................. 35,800 1,181,400
Multi-Industry -- 7.0%
Tyco International Ltd................................................ 778,000 30,536,500
United Technologies Corp.............................................. 249,100 18,666,931
------------
50,384,831
------------
INFORMATION & ENTERTAINMENT -- 9.7%
Broadcasting & Media -- 3.5%
AirTouch Communications, Inc.+........................................ 497,500 19,526,875
Liberty Media Group Corp., Class A+................................... 144,600 4,880,250
Leisure & Tourism -- 6.2%
Disney (Walt) Co...................................................... 112,400 10,670,975
KLM Royal Dutch Air Lines NV ADR...................................... 53,100 1,911,600
Northwest Airlines Corp. Class A+..................................... 273,200 11,337,800
UAL Corp.+............................................................ 235,200 19,992,000
------------
68,319,500
------------
INFORMATION TECHNOLOGY -- 24.3%
Communication Equipment -- 7.6%
Ericsson (L.M.) Telecommunications Co., Class B ADR................... 387,500 15,669,531
Nokia Corp., Class A ADR.............................................. 457,400 38,021,375
Computers & Business Equipment -- 8.2%
Compaq Computer Corp.................................................. 486,800 30,394,575
Dell Computer Corp.+.................................................. 322,100 27,116,794
Electronics -- 2.0%
Intel Corp............................................................ 55,300 4,292,663
KLA-Tencor Corp.+..................................................... 100,900 3,909,875
Texas Instruments, Inc................................................ 126,600 6,235,050
Software -- 5.5%
Cisco Systems, Inc.+.................................................. 298,500 25,745,625
Microsoft Corp.+...................................................... 72,600 10,272,900
Oracle Systems Corp.+................................................. 74,600 2,485,112
Telecommunications -- 1.0%
Lucent Technologies, Inc.............................................. 86,500 6,930,813
------------
171,074,313
------------
</TABLE>
- ---------------------
64
<PAGE> 65
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 2.3%
Telephone -- 2.3%
MCI Communications Corp............................................... 355,200 $ 15,606,600
WorldCom, Inc.+....................................................... 19,900 636,800
-------------
16,243,400
-------------
TOTAL COMMON STOCK (cost $593,295,973)................................ 674,267,819
-------------
WARRANTS -- 3.4%+
----------------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 3.4%
Electronics -- 3.4%
Intel Corp. 3/14/98 (cost $3,321,125)................................. 422,000 24,027,625
-------------
TOTAL INVESTMENT SECURITIES (cost $596,617,098)....................... 698,295,444
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 1.3% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 1.2%
Cayman Island Time Deposit with State Street Bank & Trust Co. 5.25%
due 12/01/97 @...................................................... $8,674,000 8,674,000
-------------
U.S. GOVERNMENT -- 0.1%
United States Treasury Bills 4.91% due 12/18/97 @..................... 300,000 299,304
-------------
TOTAL SHORT-TERM SECURITIES (cost $8,973,304)......................... 8,973,304
-------------
TOTAL INVESTMENTS --
(cost $605,590,402) 100.4% 707,268,748
Liabilities in excess of other assets -- (0.4) (2,735,481)
------ -------------
NET ASSETS -- 100.0% $704,533,267
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
@ The security or a portion thereof represents collateral for the
following open futures contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
-------------------------------------------------------------------------------------------------------------
NUMBER OF EXPIRATION VALUE AT VALUE AS OF UNREALIZED
CONTRACTS DESCRIPTION DATE TRADE DATE NOVEMBER 30, 1997 DEPRECIATION
-------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
Standard & Poor's 500
24 Long Index........................ December 1997 $ 5,736,900 $ 5,729,400 $ (7,500)
===========
</TABLE>
See Notes to Financial Statements
---------------------
65
<PAGE> 66
- ---------------------
SUNAMERICA SERIES TRUST
GLOBAL EQUITIES PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 95.1% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ARGENTINA -- 0.3%
Telecommunications Argentina ADR, Class B (Information Technology)... 30,000 $ 920,625
------------
AUSTRALIA -- 0.6%
Goodman Fielder Wattie Ltd. (Consumer Staples)....................... 900,328 1,352,536
Normandy Mining Ltd. (Materials)..................................... 658,000 566,138
------------
1,918,674
------------
BELGIUM -- 1.0%
Barco NV (Industrial & Commercial)................................... 8,989 1,679,979
Bekaert SA (Industrial & Commercial)................................. 2,700 1,678,943
------------
3,358,922
------------
BRAZIL -- 0.2%
Telecomunicacoes Brasileirassa SA ADR (Information Technology)....... 6,000 626,250
------------
DENMARK -- 0.7%
Den Danske Bank (Finance)+........................................... 7,300 866,769
Sophus Berendsen A/S, Series AB (Industrial & Commercial)............ 9,000 1,407,842
------------
2,274,611
------------
FINLAND -- 1.8%
Enso Oy, Series R (Materials)........................................ 203,000 1,781,987
Huhtamaki Oy (Industrial & Commercial)............................... 19,100 816,829
Nokia Corp. AB, Class A ADR (Information Technology)................. 35,569 2,862,146
Orion-yhtyma OY Series B (Healthcare)................................ 21,000 807,488
------------
6,268,450
------------
FRANCE -- 5.3%
Banque Nationale de Paris (Finance).................................. 30,248 1,475,687
Compagnie de St. Gobain (Materials).................................. 16,786 2,280,483
Compagnie Francaise d'Etudes et de Construction Technip (Industrial &
Commercial)........................................................ 6,500 673,860
Elf Aquitaine SA (Energy)............................................ 15,070 1,748,675
L'Air Liquide SA (Materials)......................................... 11,600 1,825,487
Pinault Printemps Redoute (Consumer Discretionary)................... 5,400 2,762,523
Schneider SA (Industrial & Commercial)+.............................. 43,000 2,301,763
Societe Generale (Finance)+.......................................... 16,554 2,176,055
Total SA, Series B (Energy).......................................... 28,030 2,943,879
------------
18,188,412
------------
GERMANY -- 1.8%
Adidas AG (Consumer Discretionary)................................... 15,400 2,170,060
Continental AG (Consumer Discretionary).............................. 48,900 1,238,097
Merck KGAA (Healthcare).............................................. 40,200 1,463,476
Schmalbach-Lubeca AG (Materials)..................................... 7,300 1,368,103
------------
6,239,736
------------
HONG KONG -- 2.1%
Cheung Kong Holdings Ltd. (Real Estate).............................. 274,000 1,931,749
CITIC Pacific Ltd. (Information & Entertainment)..................... 368,000 1,466,230
Dickson Concept Industries Ltd. (Industrial & Commercial)............ 223,000 418,289
</TABLE>
- ---------------------
66
<PAGE> 67
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HONG KONG (continued)
HSBC Holdings PLC (Finance)+......................................... 57,473 $ 1,386,585
Sun Hung Kai Properties Ltd. (Real Estate)+.......................... 244,000 1,862,282
------------
7,065,135
------------
INDONESIA -- 0.4%
PT Indostat alien shares (Information Technology)+................... 350,000 794,037
PT Telekomunikasi Indonesia, Series B alien shares (Information
Technology)........................................................ 559,000 409,959
PT Telekomunikasi Indonesia ADR (Information Technology)............. 6,000 87,750
PT Tempo Scan Pacific (Healthcare)................................... 310,000 118,986
------------
1,410,732
------------
ITALY -- 2.0%
Credito Italiano SpA (Finance)....................................... 1,190,000 3,258,179
Istituto Mobiliare Italiano (Finance)................................ 63,900 667,644
Telecom Italia Mobile SpA (Information Technology)................... 230,000 931,284
Telecom Italia SpA (Information Technology).......................... 344,111 2,145,266
------------
7,002,373
------------
JAPAN -- 13.9%
Advantest Corp. (Information Technology)............................. 28,900 1,999,506
Bank of Tokyo-Mitsubishi Ltd. (Finance)+............................. 91,300 1,323,448
Canon, Inc. (Information Technology)................................. 60,000 1,447,992
Daito Trust Construction Co. (Industrial & Commercial)............... 95,130 614,199
Daiwa Securities Co., Ltd. (Finance)................................. 375,000 1,307,542
Fujitec Co. (Information Technology)................................. 102,000 505,105
Fujitsu Ltd. (Information Technology)................................ 220,000 2,465,034
Hirose Electric Co., Ltd. (Industrial & Commercial).................. 12,000 721,175
Honda Motor Co., Ltd. (Consumer Discretionary)....................... 69,000 2,497,787
Hoya Corp. (Healthcare).............................................. 28,000 855,632
Kokuyo Co., Ltd. (Industrial & Commercial)........................... 40,000 695,789
Kuraray Co., Ltd. (Materials)........................................ 80,000 689,520
Long-Term Credit Bank of Japan Ltd. (Finance)........................ 680,000 1,145,544
Mabuchi Motor Co., Ltd. (Consumer Discretionary)..................... 25,000 1,310,480
Makita Corp. (Industrial & Commercial)............................... 166,000 1,964,035
Nichiei Co., Ltd. (Materials)........................................ 18,100 1,985,504
Nintendo Co., Ltd. (Information & Entertainment)..................... 15,900 1,644,505
Olympus Optical Co. (Information & Entertainment).................... 130,000 951,381
Omron Corp. (Industrial & Commercial)................................ 106,000 1,810,617
Rohm Co. (Information Technology).................................... 36,000 3,554,163
Santen Pharmaceutical Co. (Healthcare)+.............................. 61,320 840,823
Shiseido Co., Ltd. (Consumer Staples)................................ 66,000 894,652
Sony Corp. (Information Technology).................................. 43,000 3,672,478
Sumitomo Electric Industries Ltd. (Industrial & Commercial).......... 132,000 1,768,619
Taisho Pharmaceutical Co., Ltd. (Healthcare)......................... 40,000 1,002,938
TDK Corp. (Information Technology)................................... 48,000 3,911,459
Terumo Corp. (Healthcare)............................................ 123,000 1,927,522
Yamaha Motor Co. (Consumer Discretionary)............................ 209,000 1,398,519
Yamanouchi Pharmaceutical Co., Ltd. (Healthcare)..................... 112,000 2,720,470
------------
47,626,438
------------
KOREA -- 0.0%
Pohang Iron & Steel Co., Ltd. ADR (Materials)........................ 11,000 183,563
------------
MEXICO -- 0.6%
Fomento Economico Mexicano SA de CV, Class B (Consumer Staples)+..... 155,000 1,256,833
Panamerican Beverages, Inc., Class A ADR (Consumer Staples).......... 26,000 890,500
------------
2,147,333
------------
</TABLE>
---------------------
67
<PAGE> 68
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
NETHERLANDS -- 4.2%
Akzo Nobel NV (Materials)+........................................... 19,810 $ 3,484,917
ASM Lithography Holdings NV (Industrial & Commercial)................ 38,000 2,395,914
ING Groep NV (Finance)............................................... 65,025 2,643,798
KLM Royal Dutch Air Lines NV (Information & Entertainment)........... 35,000 1,259,246
Philips Electronics NV (Information Technology)...................... 18,000 1,189,252
Stork NV (Industrial & Commercial)................................... 45,600 1,670,447
Wolters Kluwer NV (Information & Entertainment)+..................... 12,500 1,654,884
------------
14,298,458
------------
NORWAY -- 0.7%
Bergesen d.y. ASA, Class A (Industrial & Commercial)................. 67,000 1,718,928
Den Norske Bank ASA (Finance)........................................ 152,000 646,773
------------
2,365,701
------------
PHILIPPINES -- 0.0%
Manila Electric Co., Class B (Utilities)............................. 12,771 44,214
------------
SPAIN -- 1.5%
Banco Bilbao Vizcaya SA (Finance).................................... 40,500 1,223,610
Banco de Santander SA (Finance)...................................... 21,000 635,169
Tabacalera SA, Series A (Consumer Staples)........................... 27,878 2,131,374
Telefonica de Espana SA (Utilities).................................. 42,500 1,225,606
------------
5,215,759
------------
SWEDEN -- 1.3%
Ericsson L.M. Telecommunications Co., Classs B ADR (Information
Technology)........................................................ 46,000 1,876,578
Volvo AB, Class B (Consumer Discretionary)........................... 62,700 1,672,758
Volvo AB, Class A (Consumer Discretionary)........................... 36,000 946,448
------------
4,495,784
------------
SWITZERLAND -- 3.2%
Ciba Specialty Chemicals AG (Materials)+............................. 19,400 2,064,771
Nestle SA (Consumer Staples)+........................................ 2,540 3,737,495
Novartis AG (Healthcare)............................................. 1,300 2,077,009
Schindler Holding AG registered (Industrial & Commercial)............ 400 454,482
Schindler Holding AG (Industrial & Commercial)....................... 960 1,097,489
Zurich Versicherungsgesellschaft (Finance)........................... 3,480 1,464,441
------------
10,895,687
------------
UNITED KINGDOM -- 8.6%
Bass PLC (Consumer Staples)+......................................... 190,800 2,739,060
Beazer Group PLC (Consumer Discretionary)............................ 435,000 1,208,535
BPB Industries PLC (Materials)....................................... 74,700 426,424
British Aerospace PLC (Industrial & Commercial)...................... 79,100 2,158,848
British Airways PLC (Information & Entertainment).................... 140,000 1,269,716
British Petroleum Co. PLC (Energy)................................... 73,852 1,010,303
Compass Group PLC (Information & Entertainment)...................... 204,400 2,440,644
Holliday Chemical Holdings PLC (Materials)........................... 334,860 978,394
HSBC Holdings PLC (Finance).......................................... 25,000 637,138
Kingfisher PLC (Consumer Discretionary).............................. 65,993 909,478
Ladbroke Group PLC (Information & Entertainment)..................... 507,352 2,304,973
Lloyds TSB Group Ltd. PLC (Finance).................................. 187,000 2,131,815
Royal & Sun Alliance Insurance Group PLC (Finance)................... 187,967 1,692,049
Rugby Group PLC (Industrial & Commercial)............................ 593,060 1,252,025
SmithKline Beecham PLC ADR (Healthcare).............................. 30,800 1,528,450
TI Group PLC (Industrial & Commercial)............................... 15,016 121,350
Tomkins PLC (multi-industry)......................................... 500,700 2,545,355
</TABLE>
- ---------------------
68
<PAGE> 69
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (continued)
United News & Media PLC (Information & Entertainment)................ 83,426 $ 1,052,510
Whitbread PLC (Consumer Staples)..................................... 210,000 2,968,581
------------
29,375,648
------------
UNITED STATES -- 44.9%
Abbott Laboratories, Inc. (Healthcare)............................... 35,100 2,281,500
ADC Telecommunications, Inc. (Information Technology)+............... 74,000 2,751,875
AlliedSignal, Inc. (Industrial & Commercial)......................... 75,800 2,814,075
American Express Co. (Finance)....................................... 19,000 1,498,625
American International Group, Inc. (Finance)......................... 27,600 2,782,425
Applied Materials, Inc. (Industrial & Commercial)+................... 48,200 1,590,600
Baker Hughes, Inc. (Energy).......................................... 45,000 1,884,375
Brunswick Corp. (Information & Entertainment)........................ 45,000 1,504,688
Campbell Soup Co. (Consumer Staples)................................. 72,100 4,037,600
Carnival Corp., Class A (Information & Entertainment)................ 52,100 2,816,656
Chase Manhattan Corp. (Finance)...................................... 34,100 3,704,112
Cisco Systems, Inc. (Information Technology)+........................ 41,000 3,536,250
COMPAQ Computer, Corp. (Information Technology)+..................... 75,250 4,698,422
CUC International, Inc. (Industrial & Commercial)+................... 110,000 3,162,500
Dayton Hudson Corp. (Consumer Discretionary)......................... 51,200 3,401,600
Dell Computer Corp. (Information Technology)+........................ 35,200 2,963,400
Disney (Walt) Co. (Information & Entertainment)...................... 41,600 3,949,400
DSC Communications Corp. (Information Technology)+................... 117,000 2,639,813
Federal Express Corp. (Industrial & Commercial)+..................... 48,000 3,219,000
First Union Corp. (Finance).......................................... 70,400 3,432,000
Gannett Co., Inc. (Information & Entertainment)...................... 80,000 4,645,000
Gillette Co. (Consumer Staples)...................................... 16,200 1,495,463
Halliburton Co. (Energy)............................................. 53,400 2,880,262
Harley-Davidson, Inc. (Consumer Discretionary)....................... 80,000 2,115,000
Hartford Financial Services, Inc. (Finance).......................... 15,900 1,331,625
Household International, Inc. (Finance).............................. 21,800 2,746,800
Intel Corp. (Information Technology)................................. 35,000 2,716,875
Kroger Co. (Consumer Discretionary)+................................. 80,200 2,761,887
Liberty Media Group Corp., Class A (Information & Entertainment)..... 91,550 3,089,812
Liz Claiborne, Inc. (Consumer Discretionary)......................... 50,000 2,512,500
Lucent Technologies, Inc. (Information Technology)................... 40,176 3,219,102
MBIA, Inc. (Finance)................................................. 34,000 2,137,750
MBNA Corp. (Finance)................................................. 121,125 3,217,383
Medtronic, Inc. (Healthcare)......................................... 42,200 2,015,050
Merck & Co., Inc. (Healthcare)....................................... 38,600 3,650,112
Microsoft Corp. (Information Technology)+............................ 13,200 1,867,800
Morgan Stanley, Dean Witter, Discover & Co. (Finance)................ 62,300 3,383,669
Nautica Enterprises, Inc. (Consumer Discretionary)+.................. 79,000 2,216,938
New York Times Co., Class A (Information & Entertainment)............ 59,900 3,556,562
Oracle Systems Corp. (Information Technology)+....................... 58,050 1,933,791
PepsiCo, Inc. (Consumer Staples)..................................... 40,000 1,475,000
Philip Morris Cos., Inc. (Consumer Staples).......................... 110,200 4,793,700
Praxair, Inc. (Materials)............................................ 40,000 1,757,500
Procter & Gamble Co. (Consumer Staples).............................. 30,400 2,319,900
Schering-Plough Corp. (Healthcare)................................... 49,800 3,121,837
Schlumberger Ltd. (Energy)........................................... 14,400 1,185,300
Solectron Corp. (Information Technology)+............................ 43,000 1,566,813
Sun Microsystems, Inc. (Information Technology)+..................... 27,000 972,000
Sunbeam Corp. (Consumer Staples)..................................... 75,100 3,309,094
Texaco, Inc. (Energy)................................................ 45,000 2,542,500
TJX Cos., Inc. (Consumer Discretionary).............................. 82,000 2,829,000
Transocean Offshore, Inc. (Energy)................................... 23,300 1,105,294
Travelers Group, Inc. (Finance)...................................... 76,599 3,868,249
Tyco International Ltd. (Industrial & Commercial).................... 120,400 4,725,700
</TABLE>
---------------------
69
<PAGE> 70
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (continued)
United States Industries, Inc. (Consumer Staples)+................... 80,400 $ 2,070,300
USA Waste Services, Inc. (Industrial & Commercial)+.................. 41,200 1,362,175
WorldCom, Inc. (Utilities)+.......................................... 64,300 2,057,600
------------
153,224,259
------------
TOTAL COMMON STOCK (cost $287,982,927)............................... 325,146,764
------------
PREFERRED STOCK -- 0.8%
----------------------------------------------------------------------------------------------------
GERMANY -- 0.8%
Henkel KGAA (Consumer Staples)+...................................... 22,160 1,362,146
ProSieben Media AG (Information & Entertainment)+.................... 26,658 1,278,858
------------
2,641,004
------------
TOTAL PREFERRED STOCK (cost $2,330,689).............................. 2,641,004
------------
TOTAL INVESTMENT SECURITIES (cost $290,313,616)...................... 327,787,768
------------
PRINCIPAL
SHORT-TERM SECURITIES -- 3.4% AMOUNT
----------------------------------------------------------------------------------------------------
TIME DEPOSIT -- 3.4%
Cayman Island Time Deposit with State Street Bank & Trust Co.
5.25% due 12/01/97 (cost $11,473,000).............................. $11,473,000 11,473,000
------------
TOTAL INVESTMENTS --
(cost $301,786,616) 99.3% 339,260,768
Other assets less liabilities -- 0.7 2,378,426
------ ------------
NET ASSETS -- 100.0% $341,639,194
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
--------------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
JPY 3,060,300,000 USD 25,710,325 02/04/98 $ 1,468,715
-----------
<CAPTION>
GROSS UNREALIZED
DEPRECIATION
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FRF 70,000,000 USD 11,485,201 12/05/97 $ (378,320)
-----------
Net Unrealized Appreciation..................... $ 1,090,395
===========
</TABLE>
-----------------------------
<TABLE>
<S> <C>
FRF -- French Franc USD -- United States Dollar
JPY -- Japanese Yen
</TABLE>
- ---------------------
70
<PAGE> 71
- ---------------------
SUNAMERICA SERIES TRUST
INTERNATIONAL GROWTH
& INCOME INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 93.4% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ARGENTINA -- 0.9%
YPF Sociedad Anonima ADR (Energy)..................................... 11,058 $ 371,134
------------
AUSTRALIA -- 1.0%
Westpac Banking Corp. (Finance)....................................... 71,000 445,553
------------
BRAZIL -- 0.6%
Petroleo Brasileiro SA ADR (Energy)(1)................................ 10,798 236,206
------------
CANADA -- 2.4%
Bank of Nova Scotia (Finance)......................................... 14,251 618,807
National Bank of Canada (Finance)..................................... 28,163 413,246
------------
1,032,053
------------
FRANCE -- 10.4%
Compagnie Generale des Eaux (Multi-industry).......................... 6,895 911,033
Elf Aquitaine SA (Energy)............................................. 6,112 709,217
Lafarge SA (Materials)................................................ 6,717 443,757
Michelin SA, Class B (Consumer Discretionary)......................... 12,750 686,819
Renault SA (Consumer Discretionary)................................... 1,080 30,241
Scor (Finance)........................................................ 7,423 319,262
Societe Generale (Finance)+........................................... 3,595 472,570
Television Francais (Information & Entertainment)..................... 3,024 266,885
Total SA, Class B (Energy)............................................ 6,022 632,467
------------
4,472,251
------------
GERMANY -- 12.0%
Altana AG (Healthcare)................................................ 1,870 129,050
Bayer AG (Multi-industry)............................................. 24,006 888,501
Bayerische Motoren Werke AG (Consumer Discretionary).................. 949 708,723
Deutsche Bank AG (Finance)............................................ 7,271 466,317
Deutsche Telekom AG (Information Technology).......................... 42,324 858,000
Deutsche Telekom AG, ADR (Information Technology)..................... 2,800 57,225
Lufthansa AG (Information & Entertainment)............................ 24,051 456,880
Siemens AG (Industrial & Commercial).................................. 9,579 562,464
Thyssen AG (Materials)................................................ 1,965 467,990
VEBA AG (Utilities)................................................... 9,405 558,914
------------
5,154,064
------------
HONG KONG -- 1.8%
Dao Heng Bank Group Ltd. (Finance).................................... 119,000 281,709
Guoco Group Ltd. (Finance)............................................ 130,000 303,546
HSBC Holdings PLC (Finance)+.......................................... 8,000 193,007
------------
778,262
------------
IRELAND -- 3.4%
Allied Irish Banks (Finance).......................................... 104,336 913,955
CRH PLC (Industrial & Commercial)..................................... 45,403 532,537
------------
1,446,492
------------
ITALY -- 2.1%
ENI SpA (Energy)...................................................... 151,441 884,069
------------
</TABLE>
---------------------
71
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN -- 11.7%
Canon, Inc. (Information Technology).................................. 24,000 $ 579,197
Fuji Photo Film Co., Ltd. (Materials)................................. 13,000 467,542
Ito-Yokado Co., Ltd. (Consumer Discretionary)......................... 10,000 451,322
KAO Corp. (Consumer Staples).......................................... 45,000 599,412
Kawasaki Steel Corp. (Materials)...................................... 140,000 230,362
Matsushita Electric Works Ltd. (Information Technology)............... 6,000 48,893
NEC Corp. (Information Technology).................................... 38,000 401,959
Nikko Securities Co., Ltd. (Finance).................................. 3,000 9,168
Promise Co (Finance).................................................. 12,860 710,386
Ricoh Co. Ltd. (Industrial & Commercial).............................. 32,000 386,131
Sankyo Co., Ltd. (Healthcare)......................................... 13,000 414,574
Sony Corp. (Information Technology)................................... 8,200 700,333
------------
4,999,279
------------
MEXICO -- 1.1%
Cemex SA de CV (Materials)............................................ 80,739 345,035
Fomento Economico Mexicano SA de CV, Class B (Consumer Staples)+...... 13,300 108,330
------------
453,365
------------
NETHERLANDS -- 8.6%
ABN Amro Holdings NV (Finance)........................................ 17,944 342,212
Akzo Nobel NV (Materials)+............................................ 5,247 923,037
ING Groep NV (Finance)................................................ 14,515 590,153
KLM Royal Dutch Air Lines NV (Information & Entertainment)............ 8,326 299,557
Koninlijke PTT Nederland NV (Telecommunications)...................... 9,485 380,870
Philips Electronics NV (Information Technology)....................... 8,840 584,055
SGS Thomson Microelectronics NV (Information Technology).............. 8,266 582,917
------------
3,702,801
------------
NEW ZEALAND -- 0.1%
Telecommunications Corp. of New Zealand Ltd. (Information
Technology)......................................................... 4,000 20,532
------------
NORWAY -- 1.6%
Den Norske Bank ASA (Finance)......................................... 160,641 683,541
------------
PORTUGAL -- 1.2%
Electricidad de Portugal SA (Utilities)............................... 900 16,267
Portugal Telecom SA (Information Technology).......................... 11,001 506,705
------------
522,972
------------
SINGAPORE -- 0.9%
Development Bank of Singapore Ltd. alien shares (Finance)............. 42,000 395,170
------------
SPAIN -- 1.1%
Iberdrola SA (Utilities).............................................. 37,899 484,190
------------
SWEDEN -- 4.8%
Pharmacia & Upjohn, Inc. ADR (Healthcare)............................. 29,930 1,034,943
Sandvik AB, Class B (Industrial & Commercial)......................... 8,711 261,166
SKF AB Series B (Materials)........................................... 18,200 426,627
Svenska Cellulosa AB, Class B (Materials)............................. 15,105 331,580
------------
2,054,316
------------
SWITZERLAND -- 6.3%
Ciba Specialty Chemicals AG (Materials)+.............................. 6,924 736,932
Julius Baer Holdings AG (Finance)..................................... 54 88,056
Nestle SA (Consumer Staples)+......................................... 584 859,329
Schweizerische Bankgesellschaft (Finance)+............................ 383 487,547
Swiss Bank Corp. (Finance)+........................................... 1,770 508,357
------------
2,680,221
------------
</TABLE>
- ---------------------
72
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM -- 21.4%
B.A.T. Industries PLC (Multi-industry)................................ 120,669 $ 1,084,205
Bass PLC (Consumer Staples)+.......................................... 40,687 584,089
British Petroleum Co. PLC (Energy).................................... 38,857 531,568
BTR Ltd. PLC (Industrial & Commercial)................................ 174,400 605,289
Cookson Group PLC (Materials)......................................... 113,440 392,757
General Electric Co. PLC (Multi-industry)............................. 137,295 893,888
Glaxo Wellcome PLC (Healthcare)....................................... 30,039 659,528
National Westminster Bank PLC (Finance)............................... 42,279 641,217
Norwich Union PLC (Finance)+.......................................... 14,275 86,311
P & O PLC (Industrial & Commercial)................................... 35,094 379,923
Rio Tinto PLC (Materials)............................................. 44,209 533,852
Rolls Royce PLC (Consumer Discretionary).............................. 211,492 846,538
Scottish Power PLC (Utilities)........................................ 60,624 491,462
Shell Transport & Trading Co. PLC (Energy)............................ 61,935 421,546
Tomkins PLC (Multi-industry).......................................... 94,969 482,784
Unilever NV PLC (Consumer Staples).................................... 69,710 549,520
------------
9,184,477
------------
TOTAL COMMON STOCK (cost $40,269,929)................................. 40,000,948
------------
PREFERRED STOCK -- 0.6%
----------------------------------------------------------------------------------------------------
BRAZIL -- 0.6%
Banco Bradesco SA (Finance) (cost $260,300)........................... 36,400,000 265,790
------------
TOTAL INVESTMENT SECURITIES (cost $40,530,229)........................ 40,266,738
------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 4.7% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FEDERAL AGENCY OBLIGATIONS -- 4.7%
Federal Home Loan Mortgage Discount Notes 5.50% due 12/17/97.......... $ 1,000,000 997,556
Federal National Mortgage Association Discount Note 5.49% due
12/23/97............................................................ 1,000,000 996,645
------------
TOTAL SHORT-TERM SECURITIES (cost $1,994,201)......................... 1,994,201
------------
REPURCHASE AGREEMENT -- 2.1%
----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 2.1%
Agreement with SBC Warburg, bearing interest of 5.67% dated 11/28/97,
to be repurchased 12/1/97 in the amount of $917,433 and
collateralized by $618,000 U.S. Treasury Notes 10.625% due 8/15/15
approximate aggregate value $936,272 (cost $917,000)................ 917,000 $ 917,000
------------
TOTAL INVESTMENTS --
(cost $43,441,430) 100.8% 43,177,939
Liabilities in excess of other assets -- (0.8) (332,448)
------- ------------
NET ASSETS -- 100.0% $42,845,491
======= ============
</TABLE>
-----------------------------
+ Non-income producing securities
(1) Fair valued security; see Note 2
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
73
<PAGE> 74
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
----------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FRF 115,220 USD 19,723 12/31/97 $ 161
-----------
<CAPTION>
GROSS UNREALIZED
DEPRECIATION
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*USD 1,694,423 FRF 9,920,000 02/11/98 $ (6,245)
*USD 631,992 FRF 3,700,000 02/11/98 (2,329)
*USD 529,507 FRF 3,100,000 02/11/98 (1,952)
*FRF 9,920,000 USD 1,602,585 02/11/98 (85,593)
*FRF 3,700,000 USD 603,953 02/11/98 (25,710)
*FRF 3,100,000 USD 524,175 02/11/98 (3,380)
----------
(125,209)
----------
Net Unrealized Depreciation................ $ (125,048)
==========
</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>
FRF -- French Franc USD -- United States Dollar
</TABLE>
See Notes to Financial Statements
- ---------------------
74
<PAGE> 75
- ---------------------
SUNAMERICA SERIES TRUST
INTERNATIONAL DIVERSIFIED
EQUITIES PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 81.8% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRALIA -- 1.3%
Amcor Holdings Ltd. (Materials)...................................... 15,900 $ 71,115
Australian Gas Light Co., Ltd. (Utilities)........................... 7,400 49,773
Australian National Industries Ltd. (Materials)...................... 21,500 19,232
Boral Ltd. (Industrial & Commercial)................................. 29,125 73,586
Brambles Industries Ltd. (Industrial & Commercial)................... 5,400 103,273
Broken Hill Proprietary Co., Ltd. (Materials)........................ 45,622 418,385
Burns Philp & Co., Ltd. (Consumer Staples)........................... 11,879 2,433
Coca-Cola Amatil Ltd. (Consumer Staples)............................. 18,862 140,417
Coles Myer Ltd. (Consumer Discretionary)............................. 26,138 128,508
Crown Ltd. (Information & Entertainment)............................. 13,534 8,040
CSR Ltd. (Industrial & Commercial)................................... 26,900 88,170
Fosters Brewing Group Ltd. (Consumer Staples)........................ 45,700 84,569
General Property Trust (Real Estate)................................. 29,800 53,314
Gio Australia Holdings Ltd. (Finance)................................ 23,374 56,502
Goodman Fielder Wattie Ltd. (Consumer Staples)....................... 29,602 44,470
ICI Australia Ltd. (Materials)....................................... 7,000 47,871
Leighton Holdings Ltd. (Industrial & Commercial)..................... 6,000 23,353
Lend Lease Corp., Ltd. (Finance)..................................... 5,849 119,420
M.I.M. Holdings Ltd. (Materials)..................................... 34,347 24,861
National Australia Bank Ltd. (Finance)............................... 29,241 386,765
Newcrest Mining Ltd. (Materials)..................................... 6,331 6,312
News Corp., Ltd. (Information & Entertainment)....................... 43,658 233,129
Normandy Mining Ltd. (Materials)..................................... 38,131 32,808
North Ltd. (Materials)............................................... 16,332 41,877
Pacific Dunlop Ltd. (Industrial & Commercial)........................ 21,700 44,454
Pioneer International Ltd. (Industrial & Commercial)+................ 22,200 58,363
Plutonic Resources Ltd. (Materials).................................. 5,500 8,000
Renison Goldfields Consolidated Ltd. (Materials)..................... 4,771 7,004
Rio Tintro Ltd. (Materials).......................................... 7,800 85,752
Santos Ltd. (Energy)................................................. 14,613 60,370
Smith (Howard) Ltd. (Industrial & Commercial)........................ 4,900 38,144
Sons of Gwalia Ltd. (Materials)...................................... 3,000 7,006
Southcorp Holdings Ltd. (Industrial & Commercial).................... 15,165 46,703
TABCORP Holdings Ltd. (Information & Entertainment).................. 7,900 36,683
Telstra Corp. (Information Technology)+.............................. 60,300 113,234
Western Mining Corp. Holdings Ltd. (Materials)+...................... 23,822 76,210
Westfield Trust new shares (Real Estate)............................. 1,677 3,058
Westfield Trust (Real Estate)........................................ 30,054 59,022
Westpac Banking Corp., Ltd. (Finance)................................ 41,300 259,174
------------
3,161,360
------------
AUSTRIA -- 0.4%
Austria Mikro Systeme International AG (Industrial & Commercial)..... 200 12,087
Austrian Airlines Osterreische Luftverkehrs AG (Information &
Entertainment)+.................................................... 800 17,084
Bank Austria AG (Finance)............................................ 2,600 121,520
Bank Austria AG (Finance)............................................ 2,264 105,086
Bau Holdings AG (Consumer Discretionary)............................. 200 11,443
Boehler-Uddeholm AG (Materials)...................................... 600 40,517
BWT AG (Industrial & Commercial)..................................... 100 15,593
</TABLE>
---------------------
75
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRIA (continued)
EA-Generali AG (Finance)............................................. 300 $ 70,833
Flughafen Wien AG (Industrial & Commercial).......................... 1,500 61,127
Lenzing AG (Materials)+.............................................. 200 10,879
Mayr-Melnhof Karton AG (Materials)................................... 700 39,204
Oesterreichische Elektrizit Irtschafts AG, Class A (Utilities)....... 1,800 144,180
Oesterrichische Brau-Beteiligungs AG (Consumer Staples).............. 300 14,505
OMV AG (Energy)...................................................... 1,300 169,174
Radex Heraklith Industriebeteiligungs AG (Materials)................. 800 29,010
Steyr-Daimler-Puch AG (Industrial & Commercial)...................... 600 17,092
VA Technologie AG (Industrial & Commercial).......................... 700 105,427
Wienerberger Baust (Materials)....................................... 500 97,165
------------
1,081,926
------------
FRANCE -- 8.3%
Accor SA (Information Technology).................................... 1,898 358,811
Alcatel Alsthom Compagnie General D'Electricite (Information
Technology)........................................................ 7,193 901,669
AXA SA de CV (Finance)+.............................................. 15,110 1,096,526
Banque Nationale de Paris (Finance).................................. 10,119 493,668
Bouygues SA (Consumer Discretionary)................................. 1,351 136,627
Canal Plus (Information & Entertainment)............................. 1,619 281,658
Carrefour SA (Consumer Discretionary)................................ 1,850 989,980
Compagie Financiere de Paribas SA (Finance)+......................... 5,239 378,506
Compagnie Bancaire SA (Finance)...................................... 1,370 204,689
Compagnie de St. Gobain (Materials).................................. 4,215 572,634
Compagnie Generale des Eaux (Multi-industry)......................... 6,011 794,230
Elf Aquitaine SA (Energy)............................................ 12,300 1,427,253
Eridania Beghin-Say SA (Consumer Staples)............................ 1,450 225,484
Essilor International (Healthcare)................................... 545 151,961
Etablissements Economiques du Casino Guichard-Perrachon (Consumer
Discretionary)..................................................... 4,225 234,178
France Telecom SA (Information Technology)+.......................... 35,750 1,312,927
Groupe Danone (Consumer Staples)..................................... 3,702 590,735
Havas SA (Industrial & Commercial)................................... 3,562 232,607
Imetal SA (Materials)................................................ 775 91,898
L'Air Liquide SA (Materials)......................................... 3,580 563,383
L'Oreal (Consumer Staples)........................................... 3,203 1,226,226
Lafarge SA (Materials)............................................... 4,629 305,814
Lagardere Group S.C.A. (Industrial & Commercial)..................... 5,300 152,627
Legrand SA (Information Technology).................................. 1,490 283,951
Michelin SA, Class B (Consumer Discretionary)........................ 5,836 314,375
Moet Henessy Louis Vuitton (Consumer Staples)........................ 4,150 715,651
Pathe SA (Information & Entertainment)............................... 400 77,109
Pernod-Ricard (Consumer Staples)..................................... 3,275 166,432
Peugeot SA (Consumer Discretionary).................................. 2,475 279,644
Pinault Printemps Redoute (Consumer Discretionary)................... 1,010 516,694
Promodes (Consumer Discretionary).................................... 910 334,508
Rhone-Poulenc Rorer SA, Class A (Healthcare)......................... 16,113 724,407
Sagem SA (Industrial & Commercial)................................... 240 108,102
Sanofi SA (Healthcare)............................................... 5,167 517,286
Schneider SA (Industrial & Commercial)+.............................. 6,272 335,736
Simco SA registered (Real Estate).................................... 1,221 86,870
Societe BIC SA (Industrial & Commercial)............................. 3,200 222,086
Societe Eurafrance SA (Finance)...................................... 190 76,601
Societe Generale (Finance)+.......................................... 4,645 610,594
Sodexho SA (Information & Entertainment)............................. 335 178,586
Suez Lyonnaise des Eaux (Multi-industry)+............................ 5,875 631,956
Thomson CSF (Industrial & Commercial)................................ 5,775 167,088
Total SA, Series B (Energy).......................................... 11,392 1,196,456
</TABLE>
- ---------------------
76
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FRANCE (continued)
Usinor Sacilor (Materials)........................................... 12,060 $ 189,583
Valeo SA (Consumer Discretionary).................................... 3,150 208,317
------------
20,666,123
------------
GERMANY -- 8.9%
Adidas AG (Consumer Discretionary)................................... 2,071 291,831
Agiv AG (Multi-industry)+............................................ 1,486 30,504
Allianz Holdings AG (Finance)........................................ 9,569 2,270,840
AMB Aachener Und Muenchner (Finance)................................. 167 171,309
BASF AG (Materials).................................................. 25,017 885,206
Bayer AG (Multi-industry)............................................ 30,578 1,131,741
Bayerische Hypotheken Und Bank AG (Finance).......................... 9,947 431,497
Bayerische Vereinsbank AG (Finance).................................. 10,524 625,114
Bilfinger & Berger Bau AG (Consumer Discretionary)................... 2,455 90,348
Brau Und Brunnen AG (Consumer Staples)............................... 334 27,841
CKAG Colonia Konzern AG (Finance).................................... 1,169 98,770
Continental AG (Consumer Discretionary).............................. 3,440 87,097
Daimler-Benz AG (Consumer Discretionary)............................. 22,562 1,597,955
Degussa AG (Materials)............................................... 4,108 190,550
Deutsche Bank AG (Finance)........................................... 21,259 1,363,421
Deutsche Telekom AG (Information Technology)......................... 92,569 1,876,576
Dresdner Bank AG (Finance)........................................... 19,105 741,016
Heidelberg Zement AG (Materials)..................................... 2,278 178,261
Hochtief AG (Industrial & Commercial)................................ 4,392 181,807
Karstadt AG (Consumer Discretionary)................................. 418 145,299
Klockner Humboldt Deutz AG (Industrial & Commercial)................. 2,171 14,773
Linde AG (Industrial & Commercial)................................... 484 301,625
Lufthansa AG (Information & Entertainment)........................... 15,247 289,637
Manitoba AG (Industrial & Commercial)................................ 601 178,920
Mannesmann AG (Industrial & Commercial).............................. 1,570 730,916
Merck KGAA (Healthcare).............................................. 7,895 287,417
Metro AG (Consumer Discretionary).................................... 9,660 443,697
Munchener Ruckversicherungs (Finance)................................ 3,399 1,062,007
Preussag AG (Materials).............................................. 785 224,572
RWE AG (Utilities)................................................... 14,880 729,445
SAP AG (Information Technology)...................................... 2,713 789,208
Schering AG (Healthcare)............................................. 3,390 332,560
Siemens AG (Industrial & Commercial)................................. 23,236 1,364,382
STRABAG AG (Consumer Staples)........................................ 167 11,004
Thyssen AG (Materials)............................................... 1,503 357,959
VEBA AG (Utilities).................................................. 21,827 1,297,119
Viag AG (Materials).................................................. 1,290 655,570
Volkswagen AG (Consumer Discretionary)............................... 1,219 691,239
------------
22,179,033
------------
ITALY -- 6.0%
Acciaierie & Ferriere Lombarde (Materials)........................... 9,500 41,298
Assicurazione Generali SpA (Finance)................................. 65,510 1,469,421
Banca Commerciale Italiana SpA (Finance)+............................ 103,200 295,700
Banco Ambrosiano Veneto SpA (Finance)................................ 40,900 134,001
Benetton Group SpA (Consumer Discretionary).......................... 13,678 207,439
Burgo (Cartiere) SpA (Materials)..................................... 11,700 69,080
Credito Italiano SpA (Finance)....................................... 178,500 488,727
Edison SpA (Utilities)............................................... 48,000 260,066
ENI SpA (Energy)..................................................... 566,000 3,304,146
Fiat SpA (Consumer Discretionary).................................... 238,720 689,535
Fiat SpA nonconvertible (Consumer Discretionary)..................... 52,870 83,855
Impreglio SpA (Industrial & Commercial)+............................. 20,000 14,344
</TABLE>
---------------------
77
<PAGE> 78
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ITALY (continued)
Istituto Bancario San Paolotorno (Finance)........................... 62,300 $ 516,053
Istituto Mobiliare Italiano (Finance)................................ 45,450 474,874
Istituto Nazionale Delle Asazioni SpA (Finance)...................... 301,700 525,664
Italcementi Fabbriche SpA (Materials)................................ 17,050 108,465
Italcementi Fabbriche SpA nonconvertible (Materials)................. 11,650 29,807
Italgas-Societa Itailiana per il Gas SpA (Utilities)................. 47,900 184,800
La Rinascente Per L'Eserciz Grandi Magazzini SpA (Consumer
Discretionary)..................................................... 17,000 128,910
Magneti Marelli SpA (Industrial & Commercial)........................ 35,000 57,031
Mediaset SpA (Information & Entertainment)........................... 85,500 422,165
Mediobanca SpA (Finance)............................................. 35,700 249,426
Montedison SpA (Multi-industry)...................................... 209,650 173,297
Montedison SpA nonconvertible (Multi-industry)....................... 67,100 37,948
Olivetti Spa (Information Technology)+............................... 260,720 146,240
Parmalat Finanziar SpA (Finance)+.................................... 112,920 163,083
Pirelli SpA (Consumer Discretionary)................................. 119,000 295,509
Riunione Adriatica de Sicur (Finance)................................ 21,225 197,499
S.A.I Societa Assicuratrice Industriale SpA (Finance)................ 9,950 100,792
Saffa SpA (Materials)+............................................... 1,300 3,582
Sirti SpA (Consumer Discretionary)................................... 22,100 133,043
SNIA BPD SpA (Multi-industry)........................................ 53,000 52,768
Telecom Italia Mobile SpA (Information Technology)................... 467,900 1,894,557
Telecom Italia Mobile SpA RNC (Information Technology)............... 112,500 246,156
Telecom Italia SpA (Information Technology).......................... 253,055 1,577,602
Telecom Italia SpA nonconvertible (Information Technology)........... 64,709 255,081
------------
15,031,964
------------
JAPAN -- 15.1%
Advantest Corp. (Information Technology)............................. 60 4,151
Ajinomoto Co., Inc. (Consumer Staples)............................... 35,000 318,120
Aoki Corp. (Industrial & Commercial)................................. 36,400 8,556
Aoyama Trading Co., Ltd. (Consumer Discretionary).................... 3,100 78,942
Asahi Bank Ltd. (Finance)............................................ 100 423
Asahi Breweries Ltd. (Consumer Staples).............................. 23,400 328,196
Asahi Chemical Industry Co., Inc. (Materials)........................ 70,000 301,665
Asahi Glass Co., Ltd. (Materials).................................... 64,200 409,975
Bank of Tokyo-Mitsubishi Ltd. (Finance)+............................. 110,400 1,600,313
Bank of Yokohama Ltd. (Finance)...................................... 100 310
Bridgestone Corp. (Industrial & Commercial).......................... 23,400 507,879
Canon, Inc. (Information Technology)................................. 28,200 680,556
Casio Computer Co. (Information Technology).......................... 13,600 108,693
Chiba Bank Ltd. (Finance)............................................ 8,000 31,216
Chugai Pharmaceutical Co., Ltd. (Healthcare)......................... 23,400 145,763
Dai Nippon Printing Co., Ltd. (Industrial & Commercial).............. 27,400 543,169
Daiei, Inc. (Consumer Discretionary)................................. 24,200 104,859
Daikin Industries Ltd. (Consumer Staples)............................ 23,400 123,028
Daiwa House Industry Co., Ltd. (Consumer Discretionary).............. 23,400 188,850
Daiwa Securities Co., Ltd. (Finance)................................. 600 2,092
East Japan Railway Co. (Industrial & Commercial)..................... 137 622,605
Ebara Corp. (Industrial & Commercial)................................ 14,600 162,445
Fanuc Ltd. (Information Technology).................................. 9,900 372,341
Fuji Bank Ltd. (Finance)............................................. 800 4,294
Fuji Photo Film Co., Ltd. (Materials)................................ 13,600 489,121
Fujitsu Ltd. (Information Technology)................................ 54,400 609,536
Furukawa Electric Co., Ltd. (Industrial & Commercial)................ 15,600 76,274
Hankyu Corp. (Industrial & Commercial)............................... 28,000 133,830
Hazama Corp. (Consumer Staples)...................................... 21,300 12,684
Hitachi Ltd. (Information Technology)+............................... 116,800 828,239
</TABLE>
- ---------------------
78
<PAGE> 79
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (continued)
Honda Motor Co., Ltd. (Consumer Discretionary)....................... 27,000 $ 977,395
Ito-Yokado Co., Ltd. (Consumer Discretionary)........................ 14,600 658,931
Japan Airlines Co., Ltd. (Information & Entertainment)............... 72,100 224,280
Japan Energy Corp. (Energy).......................................... 52,400 78,420
Joyo Bank Ltd. (Finance)............................................. 200 802
Jusco Co., Ltd. (Consumer Discretionary)............................. 10,800 181,093
Kajima Corp. (Industrial & Commercial)............................... 43,800 144,141
Kansai Electric Power Co., Inc. (Utilities).......................... 31,100 528,791
KAO Corp. (Consumer Staples)......................................... 28,800 383,624
Kawasaki Steel Corp. (Materials)..................................... 36,000 59,236
Kinki Nippon Railway Co., Ltd. (Industrial & Commercial)............. 50,500 279,753
Kirin Brewery Co., Ltd. (Consumer Staples)........................... 45,800 352,763
Komatsu Ltd. (Industrial & Commercial)............................... 41,800 250,882
Kubota Ltd. (Industrial & Commercial)................................ 63,000 217,693
Kumagai Gumi Co., Ltd. (Industrial & Commercial)..................... 71,800 48,382
Kyocera Corp. (Information Technology)............................... 6,600 318,558
Kyowa Hakko Kogyo Co., Ltd. (Materials).............................. 20,400 102,300
Long-Term Credit Bank of Japan Ltd. (Finance)........................ 60,000 101,077
Marubeni Corp. (Consumer Discretionary).............................. 59,200 147,971
Marui Co., Ltd. (Consumer Discretionary)............................. 3,800 59,549
Matsushita Electric Industrial Co., Ltd. (Information Technology)+... 63,000 982,331
Mitsubishi Chemical Corp. (Materials)................................ 70,000 136,572
Mitsubishi Corp. (Consumer Discretionary)............................ 61,000 476,051
Mitsubishi Electric Corp. (Information Technology)................... 81,800 226,252
Mitsubishi Estate Co., Ltd. (Real Estate)............................ 600 6,958
Mitsubishi Heavy Industries Ltd. (Industrial & Commercial)........... 127,400 501,115
Mitsubishi Materials Corp. (Materials)............................... 41,600 93,875
Mitsubishi Trust & Banking Corp. (Finance)........................... 30,800 410,264
Mitsui & Co. (Materials)............................................. 60,600 421,173
Mitsui Engineering & Shipbuilding Co., Ltd. (Industrial &
Commercial)........................................................ 44,800 39,666
Mitsui Trust & Banking Co., Ltd. (Finance)........................... 600 1,011
Mitsukoshi Ltd. (Consumer Discretionary)............................. 22,200 62,621
Murata Manufacturing Co. Ltd. (Information Technology)............... 7,800 234,076
Mycal Corp. (Consumer Discretionary)................................. 14,600 120,118
NEC Corp. (Information Technology)................................... 39,800 420,999
New Oji Paper Co., Ltd. (Materials)+................................. 45,800 190,557
NGK Insulators Ltd. (Industrial & Commercial)........................ 23,400 218,186
Nippon Denso Co., Ltd. (Industrial & Commercial)..................... 25,200 460,067
Nippon Express Co., Ltd. (Industrial & Commercial)................... 16,400 85,839
Nippon Fire & Marine Insurance Co., Ltd. (Finance)................... 20,400 63,138
Nippon Light Metal Co., Ltd. (Materials)............................. 19,400 36,634
Nippon Meat Packers, Inc. (Consumer Staples)......................... 20,400 266,938
Nippon Oil Co., Ltd. (Energy)........................................ 66,200 230,825
Nippon Steel Corp. (Materials)....................................... 259,000 478,934
Nippon Telegraph & Telephone Corp. (Utilities)....................... 350 2,879,530
Nippon Yusen Kabushiki Kaish (Industrial & Commercial)............... 63,000 193,011
Nissan Motor Co., Ltd. (Consumer Discretionary)...................... 79,600 346,155
NKK Corp. (Materials)................................................ 136,200 137,667
Nomura Securities Co., Ltd. (Finance)................................ 400 4,952
Odakyu Electric Railway Co., Ltd. (Industrial & Commercial).......... 24,000 115,651
Osaka Gas Co., Ltd. (Utilities)...................................... 98,200 219,291
Penta Ocean Construction Co., Ltd. (Consumer Staples)................ 20,400 35,325
Pioneer Electronic Corp. (Industrial & Commercial)................... 5,600 97,410
Rohm Co. (Information Technology).................................... 1,800 177,708
Sakura Bank Ltd. (Finance)........................................... 80,400 280,967
Sankyo Co., Ltd. (Healthcare)........................................ 17,600 561,269
Sanwa Bank Ltd. (Finance)............................................ 80,000 877,571
Sanyo Electric Co., Ltd. (Information Technology).................... 63,000 177,708
</TABLE>
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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (continued)
Secom Co. (Information Technology)................................... 5,000 $ 313,418
Sega Enterprises Ltd. (Consumer Discretionary)....................... 4,600 102,362
Sekisui House Ltd. (Consumer Discretionary).......................... 23,400 168,315
Sharp Corp. (Information Technology)................................. 40,800 273,012
Shimano, Inc. (Industrial & Commercial).............................. 5,800 132,701
Shimizu Corp. (Consumer Discretionary)............................... 33,000 106,014
Shin-Etsu Chemical Co. Ltd. (Materials).............................. 9,000 213,673
Shiseido Co., Ltd. (Consumer Staples)................................ 8,600 116,576
Shizuoka Bank Ltd. (Finance)......................................... 200 1,849
Showa Denko KK (Materials)........................................... 41,800 61,902
Sony Corp. (Information Technology).................................. 10,800 922,390
Sumitomo Chemical Co., Ltd. (Materials).............................. 83,400 277,728
Sumitomo Corp. (Industrial & Commercial)............................. 44,400 280,055
Sumitomo Electric Industries Ltd. (Industrial & Commercial).......... 31,200 418,037
Sumitomo Forestry Co., Ltd. (Materials).............................. 8,800 59,299
Sumitomo Metal Industries Ltd. (Materials)........................... 83,800 170,719
Sumitomo Metal Mining Co., Ltd. (Materials).......................... 21,400 85,181
Sumitomo Osaka Cement Co., Ltd. (Materials).......................... 21,200 40,365
Sumitomo Trust & Banking Co., Ltd. (Finance)......................... 200 2,539
Taisei Corp. (Consumer Discretionary)................................ 45,800 105,865
Taisho Pharmaceutical Co., Ltd. (Healthcare)......................... 13,600 340,999
Taiyo Yuden Co., Ltd. (Information Technology)....................... 25,000 238,981
Takeda Chemical Industries Ltd. (Healthcare)......................... 28,200 824,180
Teijin Ltd. (Consumer Discretionary)................................. 45,800 120,219
Tobu Railway Co., Ltd. (Industrial & Commercial)..................... 28,200 98,327
Tohoku Electric Power Co., Inc. (Utilities).......................... 16,200 244,983
Tokyo Corp. (Industrial & Commercial)................................ 35,000 149,461
Tokyo Electric Power Co., Inc. (Utilities)........................... 39,000 699,785
Tokyo Electron Ltd. (Information Technology)......................... 3,100 118,778
Tokyo Gas Co. Ltd. (Utilities)....................................... 93,400 223,209
Tokyo Marine & Fire Insurance Co., Ltd. (Finance).................... 70,000 663,663
Toppan Printing Co., Ltd. (Information & Entertainment).............. 28,200 382,261
Toray Industries, Inc. (Materials)................................... 70,100 318,574
Toto Ltd. (Materials)................................................ 23,200 212,686
Toyobo Co., Ltd. (Consumer Discretionary)............................ 45,800 69,978
Toyota Motor Corp. (Consumer Discretionary).......................... 91,200 2,629,704
Ube Industries Ltd. (Materials)...................................... 41,800 75,330
Yamaichi Securities Co., Ltd. (Finance).............................. 900 14
Yasuda Trust & Banking Co., Ltd. (Finance)........................... 900 769
Yokogawa Electric Corp. (Information Technology)..................... 23,000 151,021
------------
37,597,103
------------
KOREA -- 0.0%
Samsung Electronic Co., Ltd. (Information Technology)................ 27 967
------------
NETHERLANDS -- 2.6%
ABN Amro Holdings NV (Finance)....................................... 28,172 537,271
Akzo Nobel NV (Materials)+........................................... 1,575 277,069
Elsevier NV (Consumer Discretionary)................................. 14,500 245,157
Getronics NV (Information Technology)+............................... 1,810 62,207
Heineken NV (Consumer Staples)....................................... 1,000 169,325
ING Groep NV (Finance)............................................... 15,958 648,823
KLM Royal Dutch Air Lines NV (Information & Entertainment)........... 1,924 69,223
Koninklijke Ahold NV (Consumer Discretionary)........................ 14,601 389,399
Koninklijke KNP BT (Materials)....................................... 2,175 46,952
Koninklijke PTT Nederland NV (Information Technology)................ 9,299 373,401
Nedlloyd Groep NV (Industrial & Commercial).......................... 550 12,648
Oce-Van Der Grinten NV (Information Technology)+..................... 405 46,159
</TABLE>
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----------------------------------------------------------------------------------------------------
<S> <C> <C>
NETHERLANDS (continued)
Philips Electronics NV (Information Technology)...................... 7,050 $ 465,790
Royal Dutch Petroleum Co. (Energy)................................... 42,300 2,203,014
Stork NV (Industrial & Commercial)................................... 744 27,255
Unilever NV PLC (Consumer Staples)................................... 12,800 744,568
Wolters Kluwer NV (Information & Entertainment)+..................... 1,368 181,111
------------
6,499,372
------------
NORWAY -- 0.5%
Aker RGI ASA, Series A (Industrial & Commercial)..................... 2,600 45,916
Bergesen d.y. ASA, Series A (Industrial & Commercial)................ 2,300 59,008
Bergesen d.y. ASA, Series B (Industrial & Commercial)................ 900 22,777
Christiania Bank Og Kreditkasse+ (Finance)........................... 22,400 80,674
Dyno Industrier ASA (Materials)...................................... 1,300 25,127
Elkem ASA (Materials)................................................ 2,100 29,786
Hafslund ASA, Series A (Utilities)................................... 4,100 24,515
Helikopter Services Group ASA (Industrial & Commercial).............. 900 10,262
Kvaerner ASA, Series A (Industrial & Commercial)..................... 1,700 83,920
Leif Hoegh & Co. ASA (Industrial & Commercial)....................... 1,300 25,489
Norsk Hydro ASA...................................................... 9,600 494,591
Norske Skogindustrier ASA, Class A (Materials)+...................... 1,100 33,651
Orkla ASA (Finance).................................................. 1,900 163,807
Petroleum Geo-Services (Energy)+..................................... 1,300 83,697
Unified Storebrand As (Finance)...................................... 11,600 78,878
Unitor ASA (Industrial & Commercial)................................. 800 10,346
Vard AS (Information & Entertainment)................................ 5,600 20,947
------------
1,293,391
------------
PORTUGAL -- 1.1%
Banco Commercial Portugues SA (Finance).............................. 13,000 274,140
Banco Espirito Santo e Comercial de Lisboa (Finance)+................ 6,900 194,096
Banco Totta & Acores SA (Finance).................................... 5,000 94,340
BPI-SGPS SA (Finance)+............................................... 6,600 146,687
Cimpor-Cimentos de Portugal SA SGPS (Consumer Staples)............... 6,900 174,759
CIN-Corparacao Industrial de Norte SA (Materials).................... 300 18,629
Corticeira Amorim SA (Materials)..................................... 1,300 14,789
Electricidad de Portugal SA (Utilities).............................. 30,500 551,268
INAPA-Investimentos Participacoes e Gestao SA (Materials)............ 400 13,319
Jeronimo Martins SGPS SA (Consumer Staples).......................... 2,000 63,208
Portucel Industrial-Empresa Produtora de Celulose SA (Materials)..... 7,400 47,554
Portugal Telecom SA (Information Technology)......................... 19,100 879,745
Soares Da Costa (Consumer Discretionary)............................. 1,000 7,769
Sonae Investimentos-Sociedade Gestora de Participacoes Sociais SA
(Industrial & Commercial).......................................... 3,400 127,075
UNICER-Uniao Cervejeira SA (Consumer Staples)........................ 900 14,084
------------
2,621,462
------------
SINGAPORE -- 0.9%
Asis Foods & Properties Ltd. (Consumer Staples)+..................... 22,666 5,440
City Developments Ltd. (Real Estate)................................. 32,000 157,566
Creative Technolog Ltd. (Information Technology)..................... 4,000 111,149
Cycle & Carriage Ltd. (Consumer Discretionary)....................... 9,000 38,106
DBS Land Ltd. (Real Estate).......................................... 38,000 64,595
Development Bank of Singapore Ltd. alien shares (Finance)............ 19,000 178,767
First Capital Corp., Ltd. alien shares (Real Estate)................. 12,000 13,549
Fraser & Neave Ltd. alien shares (Consumer Staples).................. 11,800 58,843
Hai Sun Hup Group Ltd. alien shares (Finance)........................ 23,000 10,027
Hotel Properties Ltd. alien shares (Real Estate)..................... 19,000 13,706
Inchcape Bhd alien shares (Multi-industry)........................... 8,000 21,377
</TABLE>
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COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
SINGAPORE (continued)
Keppel Corp., Ltd. (Industrial & Commercial)......................... 29,000 $ 98,228
Metro Holdings Ltd. (Consumer Discretionary)......................... 4,000 7,502
NatSteel Ltd. (Materials)............................................ 13,000 27,398
Neptune Orient Lines Ltd. (Industrial & Commercial).................. 35,000 20,856
Overseas Chinese Banking Corp., Ltd. alien shares (Finance).......... 33,534 200,878
Overseas Union Enterprise Ltd. (Information & Entertainment)......... 6,000 13,925
Parkway Holdings Ltd. alien shares (Real Estate)..................... 13,000 30,823
Robinson & Co., Ltd. alien shares (Consumer Discretionary)........... 2,400 7,437
Shangri-La Hotel Ltd. alien shares (Information & Entertainment)..... 6,400 12,284
Singapore Airlines Ltd. alien shares (Information & Entertainment)... 35,000 228,321
Singapore Press Holdings Ltd. alien shares (Information &
Entertainment)..................................................... 7,800 106,658
Singapore Tech Industrial Corp. (Industrial & Commercial)............ 29,000 29,468
Singapore Telecommunications Ltd. (Information Technology)........... 243,000 469,462
Straits Trading Co., Ltd. (Materials)................................ 14,000 20,022
United Industrial Corp., Ltd. (Multi-industry)....................... 58,000 27,286
United Overseas Bank Ltd. alien shares (Finance)..................... 33,000 196,644
United Overseas Land (Real Estate)................................... 22,000 21,389
------------
2,191,706
------------
SPAIN -- 4.4%
Acerinox SA (Materials).............................................. 787 122,977
Autopistas Concesionaria Espana SA (Industrial & Commercial)......... 15,186 202,670
Banco Bilbao Vizcaya SA (Finance).................................... 48,450 1,463,800
Banco Central Hispanoamericano SA (Finance).......................... 23,600 452,659
Banco de Santander SA (Finance)...................................... 34,350 1,038,954
Corporacion Bancaria de Espana SA (Finance).......................... 9,050 561,414
Corporacion Financiera Alba SA (Multi-industry)...................... 1,125 121,471
Corporacion Mapfre SA registered (Finance)........................... 1,968 96,084
Dragados & Construcciones SA (Consumer Discretionary)................ 4,150 88,227
Ebro Agricolas, Compania de Alimentacion SA (Industrial &
Commercial)........................................................ 3,450 59,694
Empresa Nacional Celulos SA (Materials).............................. 1,475 23,939
Endesa SA (Utilities)................................................ 73,200 1,377,010
Ercros SA (Materials)................................................ 12,200 12,436
Fomento de Construcciones y Contratas SA (Consumer Discretionary).... 4,300 170,720
Gas Natural SDG, SA (Utilities)...................................... 10,800 534,532
Iberdrola SA (Utilities)............................................. 66,700 852,146
Inmobiliaria Metropolitana Vasco Central SA (Real Estate)............ 1,712 73,826
Mapfre Vida SA (Finance)............................................. 13 802
Portland Valderrivas SA (Materials).................................. 475 38,705
Repsol SA (Energy)................................................... 21,600 934,344
Sociedad General de Aguas de Barcelona SA (Utilities)................ 3,143 129,000
Tabacalera SA, Series A (Consumer Staples)........................... 2,600 198,779
Telefonica de Espana SA (Utilities).................................. 67,400 1,943,666
Union Electrica Fenosa SA (Utilities)................................ 20,900 209,547
Uralita SA (Materials)............................................... 3,800 44,216
Vallehermoso SA (Real Estate)........................................ 3,083 90,457
Viscofan Industria Navarra De Envolturas Celulosicas SA
(Materials)........................................................ 1,700 41,956
Zardoya Otis SA (Industrial & Commercial)............................ 625 72,723
------------
10,956,754
------------
SWEDEN -- 2.7%
ABB AB, Class A (Utilities).......................................... 30,700 391,627
ABB AB, Class B (Utilities).......................................... 5,200 64,651
AGA AB, Series B (Materials)......................................... 8,750 109,920
Astra AB, Class A (Healthcare)....................................... 58,266 1,011,156
Astra AB, Class B (Healthcare)....................................... 13,600 227,210
Atlas Copco AB, Series A (Industrial & Commercial)................... 6,850 210,251
</TABLE>
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----------------------------------------------------------------------------------------------------
<S> <C> <C>
SWEDEN (continued)
Electrolux AB, Series B (Consumer Discretionary)..................... 3,700 $ 291,342
Ericsson L.M. Telecommunications Co., Class B (Information
Technology)........................................................ 40,100 1,635,887
Esselte AB, Series B (Information Technology)........................ 1,800 37,182
Granges AB (Materials)+.............................................. 1,650 26,284
Hennes & Mauritz AB Class B (Consumer Discretionary)................. 8,900 411,487
Scanem AB, Series A (Industrial & Commercial)........................ 250 9,551
Securitas AB, Series B (Industrial & Commercial)..................... 3,700 111,170
Skandinaviska Enskilda Banken., Series A (Finance)................... 24,200 285,204
Skandia Forsakrings AB (Finance)..................................... 4,700 247,737
Skanska AB, Series B (Industrial & Commercial)....................... 5,600 230,629
SKF AB, Series B (Materials)......................................... 3,600 84,388
Stora Kopparbergs Bergslags Aktiebolag, Series A (Materials)......... 14,550 193,146
Svenska Cellulosa AB, Class B (Materials)............................ 8,200 180,004
Svenska Handelsbanken, Series A (Finance)+........................... 9,800 345,218
Swedish Match AB (Consumer Staples).................................. 25,000 84,504
Trelleborg AB, Series B (Materials).................................. 6,700 93,712
Volvo AB, Series B (Consumer Discretionary).......................... 16,400 437,531
------------
6,719,791
------------
SWITZERLAND -- 5.4%
ABB AG (Utilities)+.................................................. 310 412,449
Adecco SA (Industrial & Commercial)+................................. 585 172,324
Alusuisse-Lonza Holdings AG (Multi-industry)......................... 180 165,255
CS Holding AG (Finance)+............................................. 6,750 987,077
Fischer (Georg) AG, Series B (Consumer Staples)...................... 25 34,367
Gebrueder Sulzer AG (Consumer Staples)+.............................. 130 85,889
Holderbank Financiere Glarus AG (Materials).......................... 215 187,435
Nestle SA (Consumer Staples)+........................................ 1,245 1,831,961
Novartis AG (Healthcare)............................................. 2,025 3,235,342
Roche Holdings AG (Healthcare)....................................... 51 776,196
Roche Holdings AG Genusscheine NPV (Healthcare)...................... 218 1,950,961
Schweizerische BankGesellschaft (Finance)+........................... 730 185,086
Schweizerische BankGesellschaft, Series B (Finance)+................. 660 840,160
Schweizerische Rueckversicherungs-Gesellschaft (Consumer
Discretionary)..................................................... 455 743,228
SGS Societe Generale de Surveillance Holding SA, Series B (Industrial
& Commercial)...................................................... 60 112,105
SMH AG (Consumer Discretionary)...................................... 165 90,149
Swiss Bank Corp. (Finance)+.......................................... 2,390 686,425
Swissair AG, Series B (Information & Entertainment)+................. 110 143,576
Valora Holding AG (Industrial & Commercial).......................... 205 43,134
Zurich Versicherungs-Gesellschaft (Finance).......................... 1,495 629,120
------------
13,312,239
------------
THAILAND -- 0.0%
Advance Agro PCL alien shares (Materials)+........................... 660 590
CMIC Finance & Security PCL alien shares (Finance)................... 6,700 0
Finance One PCL alien shares (Finance)............................... 37,700 0
General Finance & Securities PCL alien shares (Finance).............. 7,650 0
Land & House PCL alien shares (Real Estate)+......................... 34,119 10,384
Phoenix Pulp & Paper PLC alien shares (Materials).................... 1,600 477
TPI Polene PCL alien shares (Materials).............................. 51,400 5,108
Univest Land PCL alien shares (Real Estate).......................... 22,500 0
------------
16,559
------------
UNITED KINGDOM -- 24.2%
Abbey National PLC (Finance)......................................... 74,650 1,191,423
Arjo Wiggins Appleton PLC (Materials)................................ 37,325 106,535
Associated British Foods PLC (Consumer Staples)...................... 26,650 245,525
</TABLE>
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COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (continued)
B.A.T. Industries PLC (Multi-industry)............................... 165,361 $ 1,485,761
Barclays PLC (Finance)............................................... 90,645 2,186,131
Bass PLC (Consumer Staples).......................................... 58,700 842,677
BG PLC (Utilities)................................................... 278,735 1,336,947
BICC Group PLC (Industrial & Commercial)............................. 37,343 97,126
Blue Circle Industries PLC (Materials)............................... 69,400 398,513
BOC Group PLC (Materials)............................................ 37,395 596,828
Boots Co. PLC (Consumer Discretionary)............................... 58,700 862,505
BPB Industries PLC (Materials)....................................... 37,325 213,069
British Aerospace PLC (Industrial & Commercial)...................... 27 727,021
British Airways PLC (Information & Entertainment).................... 63,904 579,571
British Petroleum Co. PLC (Energy)................................... 301,728 4,127,669
British Sky Broadcasting Group PLC (Information & Entertainment)..... 85,425 634,807
British Steel PLC (Materials)........................................ 106,675 249,076
British Telecommunications PLC (Information Technology).............. 309,350 2,387,649
BTR Ltd. PLC (Industrial & Commercial)............................... 224,077 777,702
Burmah Castrol PLC (Energy).......................................... 16,029 269,902
Cable & Wireless PLC (Information Technology)........................ 133,315 1,211,338
Cadbury Schweppes PLC (Consumer Discretionary)....................... 58,696 609,660
Caradon PLC (Materials).............................................. 42,620 134,604
Centrica PLC (Utilities)+............................................ 234,600 340,746
Coats Viyella PLC (Consumer Discretionary)........................... 48,095 83,664
Commercial Union PLC (Finance)....................................... 37,348 514,078
Courtaulds PLC (Materials)........................................... 26,650 122,875
De La Rue PLC (Information & Entertainment).......................... 5,269 35,595
Emi Group PLC (Information & Entertainment).......................... 26,648 200,726
General Electric Co. PLC (Multi-industry)............................ 154,675 1,007,045
GKN PLC (Industrial & Commercial).................................... 31,975 695,014
Glaxo Wellcome PLC (Healthcare)...................................... 170,650 3,746,742
Granada Group PLC (Information & Entertainment)...................... 37,331 534,020
Grand Metropolitan PLC (Information & Entertainment)................. 73,942 673,107
Great Universal Stores PLC (Consumer Discretionary).................. 63,975 750,930
Guardian Royal Exchange PLC (Finance)................................ 42,611 205,102
Guinness PLC (Consumer Staples)...................................... 78,500 711,948
Hanson PLC (Industrial & Commercial)................................. 32,072 163,312
Harrisons & Crossfield PLC (Multi-industry).......................... 69,250 138,593
HSBC Holdings PLC (Finance).......................................... 117,418 2,861,576
Imperial Chemical Industries PLC (Materials)......................... 48,000 710,149
Ladbroke Group PLC (Information & Entertainment)..................... 64,046 290,970
Land Securities PLC (Real Estate).................................... 42,600 692,851
LASMO PLC (Energy)................................................... 42,600 189,221
Legal & General Group Ltd PLC (Finance)+............................. 63,975 545,640
Lloyds TSB Group Ltd. (Finance)...................................... 293,324 3,343,918
Lonrho PLC (Multi-industry).......................................... 42,604 66,198
Marks & Spencer PLC (Consumer Discretionary)......................... 186,600 1,919,257
MEPC PLC (Real Estate)............................................... 31,925 287,923
National Power PLC (Utilities)....................................... 74,650 712,962
Peninsular & Oriental Steam PLC (Industrial & Commercial)+........... 42,673 461,972
Pilkington PLC (Materials)........................................... 80,014 174,325
Prudential Corp. PLC (Finance)....................................... 106,710 1,149,820
Rank Group PLC (Information & Entertainment)......................... 48,100 280,671
Redland PLC (Materials).............................................. 31,999 184,287
Reed International PLC (Information & Entertainment)................. 74,650 794,912
Reuters Holdings PLC (Industrial & Commercial)....................... 90,700 1,023,265
Rexam PLC (Materials)................................................ 31,925 156,363
Rio Tinto PLC (Materials)............................................ 63,998 772,817
RMC Group PLC (Materials)............................................ 15,950 241,364
Royal & Sun Alliance Insurance Group PLC (Finance)................... 74,731 672,717
</TABLE>
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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (continued)
Royal Bank of Scotland Group PLC (Finance)........................... 26,651 $ 306,524
Safeway PLC (Consumer Discretionary)+................................ 47,952 262,395
Sainsbury (J.) PLC (Consumer Discretionary).......................... 85,272 701,358
Schroders PLC (Finance).............................................. 10,675 307,575
Scottish Power PLC (Utilities)....................................... 53,303 432,113
Sears PLC (Consumer Discretionary)................................... 106,675 88,280
Sedgwick Group PLC (Finance)......................................... 32,071 67,706
Slough Estates PLC (Real Estate)..................................... 26,650 155,507
Smithkline Beecham PLC (Healthcare).................................. 282,683 2,625,830
Southern Electric PLC (Utilities).................................... 26,571 201,492
Tarmac PLC (Consumer Discretionary).................................. 74,737 145,157
Taylor Woodrow PLC (Industrial & Commercial)......................... 42,679 126,141
Tesco PLC (Consumer Staples)......................................... 101,305 818,685
Thames Water PLC (Industrial & Commercial)........................... 37,261 561,337
Thorn PLC (Consumer Discretionary)+.................................. 26,650 67,289
TI Group PLC (Industrial & Commercial)............................... 26,571 214,731
Unilever NV PLC (Consumer Staples)................................... 157,225 1,239,396
United Utilities PLC (Utilities)..................................... 37,347 480,004
Vodafone Group PLC (Information Technology).......................... 176,057 1,177,478
Zeneca Group PLC (Real Estate)....................................... 48,000 1,532,171
------------
60,239,883
------------
TOTAL COMMON STOCK (cost $193,789,194)............................... 203,569,633
------------
PREFERRED STOCK -- 0.5%
----------------------------------------------------------------------------------------------------
AUSTRALIA -- 0.1%
News Corp., Ltd. (Information & Entertainment)....................... 31,965 155,454
------------
AUSTRIA -- 0.0%
Bank Austria AG (Finance)............................................ 1,200 49,317
Bank Austria AG (Finance)............................................ 900 37,351
Bau Holdings AG (Consumer Discretionary)............................. 100 4,593
------------
91,261
------------
GERMANY -- 0.4%
RWE AG (Utilities)................................................... 9,920 399,669
SAP AG non voting (Information Technology)........................... 1,894 583,182
------------
982,851
------------
ITALY -- 0.0%
Fiat SpA (Consumer Discretionary).................................... 80,850 124,020
------------
TOTAL PREFERRED STOCK (cost $1,091,560).............................. 1,353,586
------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 0.0% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FRANCE -- 0.0%
Establissements Economiques du Casino -- Perrachon 4.50% 2001
(Consumer Discretionary)........................................... $ 43,400 15,753
Simco SA 3.25% 2006 (Real Estate).................................... 479 41,463
Sodexho SA 6.00% 2004 (Industrial & Commercial)...................... 30,000 5,162
------------
62,378
------------
</TABLE>
- ---------------------
85
<PAGE> 86
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ITALY -- 0.0%
Mediobanca SpA 4.50% 2000 (Finance).................................. $16,000,000 $ 9,104
------------
TOTAL BONDS & NOTES (cost $71,642)................................... 71,482
------------
RIGHTS -- 0.1%+
----------------------------------------------------------------------------------------------------
FRANCE -- 0.0%
Sodexho SA 12/11/97 (Information & Entertainment).................... 335 4,188
------------
ITALY -- 0.1%
Banco Ambrosiano Veneto SpA 1/2/98 (Finance)......................... 36,900 133,391
------------
NORWAY -- 0.0%
NCL Holding ASA 12/23/97 (Information & Entertainment)............... 622 0
------------
PORTUGAL -- 0.0%
Jeronimo Martins 12/31/97 (Consumer Staples)......................... 2,000 94,811
------------
SPAIN -- 0.0%
Sociedad General de Aguas De Barcelona SA 12/15/97 (Utilities)....... 3,143 14
------------
TOTAL RIGHTS (cost $0)............................................... 232,404
------------
<CAPTION>
WARRANTS -- 0.0%+ SHARES
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FRANCE -- 0.0%
Establissements Economiques du Casino -- Perrachon 12/31/99 (Consumer
Discretionary)..................................................... 434 9,558
Compagnie Generale des Eaux 5/02/01 (Multi-industry)................. 4,504 2,754
Sodexho SA 6/7/04 (Information & Entertainment)...................... 6 1,320
------------
13,632
------------
HONG KONG -- 0.0%
Hongkong & Shanghai Hotels Ltd. 12/10/98 (Information &
Entertainment)..................................................... 5,666 136
Hysan Development Co., Ltd. 4/30/98 (Real Estate).................... 975 13
Oriental Press Group 10/02/98 (Information & Entertainment).......... 5,600 40
Peregrine Investment Holdings Ltd. 5/15/98 (Finance)................. 1,200 15
Stelux Holdings 2/28/98 (Consumer Discretionary)..................... 5,800 7
------------
211
------------
ITALY -- 0.0%
La Rinascente 11/30/99 (Finance)..................................... 2,650 3,259
Mediobanca SpA 12/31/99 (Finance).................................... 2,000 865
Riunione Adriatica de Sicur 12/11/97 (Finance)....................... 150 374
Riunione Adriatica de Sicur 12/11/97 (Finance)....................... 250 673
------------
5,171
------------
</TABLE>
---------------------
86
<PAGE> 87
<TABLE>
<CAPTION>
WARRANTS (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
SINGAPORE -- 0.0%
Asia Foods & Properties Ltd. 7/12/02 (Consumer Staples).............. 1,700 $ 238
Straits Steamship Land Ltd. 12/12/00 (Multi-industry)................ 4,750 1,505
------------
1,743
------------
TOTAL WARRANTS (cost $11,963)........................................ 20,757
------------
TOTAL INVESTMENT SECURITIES (cost $194,964,359)...................... 205,247,862
------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 17.9% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 17.9%
Agreement with State Street Bank & Trust Co., bearing interst of 5.0%
dated 11/28/97 to be repurchased 12/01/97 in the amount of
$44,568,563 and collateralized by $44,375,000 U.S. Treasury Notes
6.25% due 7/31/98 approximate aggregate value $45,445,788 (cost
$44,550,000)....................................................... $44,550,000 $ 44,550,000
-------------
TOTAL INVESTMENTS --
(cost $239,514,359) 100.3% 249,797,862
Liabilities in excess of other assets -- (0.3) (871,150)
----- ------------
NET ASSETS -- 100.0% $248,926,712
===== ============
</TABLE>
-----------------------------
+ Non-income producing securities
- ---------------------
87
<PAGE> 88
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
-------------------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*AUD 1,423,993 USD 1,022,000 12/18/97 $ 49,003
*DEM 269,771 USD 157,099 01/16/98 3,666
*DEM 1,309,000 USD 748,556 01/16/98 4,058
*DEM 1,050,000 USD 600,446 01/16/98 3,255
*DEM 3,471,355 USD 1,985,106 01/16/98 10,762
*DEM 6,162,229 USD 3,523,892 01/16/98 19,103
*DEM 3,229,313 USD 1,875,000 02/12/98 35,674
DEM 4,089,516 USD 2,337,000 03/16/98 3,832
*ESP 86,733,100 USD 593,770 02/12/98 10,952
*ESP 3,831,540 USD 26,230 02/12/98 484
*FRF 5,910,284 USD 1,025,966 12/15/97 23,605
*FRF 12,083,773 USD 2,078,464 01/21/98 24,326
*FRF 1,176,727 USD 202,402 01/21/98 2,369
FRF 12,223,976 USD 2,087,000 03/16/98 3,169
*ITL 2,620,000,000 USD 1,533,150 01/21/98 17,011
*ITL 1,454,574,300 USD 851,176 01/21/98 9,444
*ITL 1,859,990,000 USD 1,088,414 01/21/98 12,076
*ITL 2,654,510,860 USD 1,553,345 01/21/98 17,235
*ITL 1,433,292,000 USD 840,000 02/19/98 10,649
*ITL 428,018,000 USD 252,269 02/19/98 4,604
JPY 1,047,959,750 USD 8,725,000 01/29/98 430,867
JPY 526,968,188 USD 4,362,500 01/29/98 191,782
JPY 199,916,000 USD 1,640,000 01/29/98 57,754
JPY 1,026,888,875 USD 8,725,000 02/05/98 589,527
JPY 526,335,625 USD 4,362,500 02/05/98 192,634
*JPY 45,479,716 USD 361,754 02/26/98 362
*JPY 19,827,084 USD 157,708 02/26/98 158
*NLG 1,295,840 USD 667,890 02/19/98 12,612
*NLG 630,778 USD 325,110 02/19/98 6,139
*USD 3,726,000 FRF 22,089,098 12/15/97 16,835
*USD 627,000 ESP 93,636,180 12/18/97 1,283
*USD 1,968,000 DEM 3,471,356 01/16/98 6,345
*USD 1,510,827 ITL 2,620,000,000 01/21/98 5,313
*USD 839,000 ITL 1,454,574,300 01/21/98 2,732
----------
1,779,620
----------
</TABLE>
---------------------
88
<PAGE> 89
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE DEPRECIATION
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*ESP 93,636,180 USD 626,664 12/18/97 $ (1,619)
*ESP 86,827,505 USD 581,097 12/18/97 (1,501)
*ESP 149,395,675 USD 999,837 12/18/97 (2,583)
*FRF 6,198,357 USD 1,040,377 12/15/97 (10,841)
*FRF 22,069,098 USD 3,704,236 12/15/97 (38,599)
*FRF 1,107,975 USD 186,387 01/21/98 (1,960)
*SGD 3,132,716 USD 1,939,162 03/05/98 (15,625)
*USD 1,028,681 FRF 5,910,284 12/15/97 (26,319)
*USD 1,078,819 FRF 6,198,357 12/15/97 (27,602)
*USD 597,500 ESP 86,827,505 12/18/97 (14,902)
*USD 1,025,999 ESP 149,395,675 12/18/97 (23,579)
*USD 1,027,838 AUD 1,423,993 12/19/97 (54,841)
*USD 157,282 DEM 269,771 01/16/98 (3,849)
*USD 749,842 DEM 1,309,000 01/16/98 (5,344)
*USD 602,983 DEM 1,050,000 10/16/98 (5,772)
*USD 3,592,718 DEM 6,162,229 01/16/98 (87,930)
*USD 192,748 FRF 1,107,975 01/21/98 (4,402)
*USD 2,107,500 FRF 12,083,773 01/21/98 (53,362)
*USD 204,709 FRF 1,176,727 01/21/98 (4,675)
*USD 1,100,000 ITL 1,859,990,000 01/21/98 (23,663)
*USD 1,565,603 ITL 2,654,510,860 01/21/98 (29,493)
*USD 1,883,530 DEM 3,229,313 02/12/98 (44,204)
*USD 597,500 ESP 86,733,100 02/12/98 (14,683)
*USD 26,341 ESP 3,831,540 02/12/98 (594)
*USD 847,049 ITL 1,433,292,000 02/19/98 (17,699)
*USD 252,951 ITL 428,018,000 02/19/98 (5,285)
*USD 672,500 NLG 1,295,840 02/19/98 (17,222)
*USD 326,524 NLG 630,778 02/19/98 (7,553)
*USD 364,801 JPY 45,479,716 02/26/98 (3,409)
*USD 157,972 JPY 19,827,084 02/26/98 (422)
USD 792,028 JPY 99,407,416 02/26/98 (2,114)
*USD 1,967,168 SGD 3,132,716 03/05/98 (12,382)
USD 47,523 JPY 5,937,000 03/16/98 (213)
----------
(564,241)
----------
Net Unrealized Appreciation....................... $ 1,215,379
==========
</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>
AUD -- Australian Dollar FRF -- French Franc NGL -- Netherlands Guilder
DEM -- Deutsche Mark ITL -- Italian Lira SGD -- Singapore Dollar
ESP -- Spanish Peseta JPY -- Japanese Yen USD -- United States Dollar
</TABLE>
See Notes to Financial Statements
- ---------------------
89
<PAGE> 90
- ---------------------
SUNAMERICA SERIES TRUST
REAL ESTATE INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 84.0% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 8.6%
Leisure & Tourism -- 8.6%
Bristol Hotel Co.+..................................................... 7,300 $ 180,675
CapStar Hotel Co.+..................................................... 25,500 954,656
Host Marriott Corp.+................................................... 7,300 151,931
Premier Parks, Inc.+................................................... 12,400 483,600
Servico, Inc.+......................................................... 39,500 683,844
WHG Resorts & Casinos, Inc.+........................................... 3,800 84,550
-------------
2,539,256
-------------
REAL ESTATE -- 75.4%
Real Estate Companies -- 7.0%
Boardwalk Equities, Inc.+.............................................. 26,200 298,940
Catellus Development Corp.+............................................ 50,800 939,800
Crescent Operating, Inc.+.............................................. 1,780 29,815
Security Capital Group, Inc., Class B+................................. 7,800 250,575
The Rouse Co........................................................... 2,000 63,000
TrizecHahn Corp........................................................ 21,700 501,812
Real Estate Investment Trusts -- 68.4%
Alexandria Real Estate Equities, Inc................................... 14,100 438,862
Ambassador Apartments, Inc. Class A.................................... 18,400 366,850
Apartment Investment & Management Co................................... 4,900 173,338
Arden Reality, Inc..................................................... 3,200 97,400
Avalon Properties, Inc................................................. 5,700 175,275
Bay Apartment Communities, Inc......................................... 10,200 407,362
Beacon Properties Corp................................................. 14,100 634,500
Boston Properties, Inc................................................. 26,100 851,512
Boykin Lodging Co...................................................... 7,000 181,563
Cali Reality Corp...................................................... 21,700 861,219
Camden Property Trust.................................................. 10,000 326,875
CarrAmerica Realty Corp................................................ 2,000 60,250
CCA Prison Reality Trust............................................... 5,100 181,687
CenterPoint Properties Corp............................................ 12,100 400,812
Chelsea GCA Realty, Inc................................................ 2,500 95,000
Crescent Real Estate Equities Co....................................... 25,300 974,050
Duke Realty Investments, Inc........................................... 6,200 142,600
Equity Office Properties Trust......................................... 5,700 184,894
Equity Residential Properties Trust.................................... 1,100 55,000
Essex Property Trust, Inc.............................................. 18,200 657,475
FelCor Suite Hotels, Inc............................................... 18,100 657,256
First Industrial Reality Trust, Inc.................................... 18,000 635,625
First Union Real Estate Investments.................................... 9,900 147,263
Gables Residential Trust............................................... 7,300 198,469
Glenborough Reality Trust, Inc......................................... 21,800 588,600
Golf Trust of America, Inc............................................. 14,300 386,100
Home Properties of New York, Inc....................................... 5,600 148,750
IRT Property Co........................................................ 10,800 130,275
Irvine Apartment Communities, Inc...................................... 8,800 273,350
JDN Realty Corp........................................................ 17,000 528,062
Kilroy Reality Corp.................................................... 6,400 168,000
Kimco Realty Corp...................................................... 5,500 189,062
Liberty Property Trust................................................. 28,700 801,806
</TABLE>
---------------------
90
<PAGE> 91
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE (continued)
Real Estate Companies (continued)
National Golf Properties, Inc.......................................... 4,400 $ 139,700
Oasis Residential, Inc................................................. 1,000 21,813
Pacific Gulf Properties, Inc........................................... 3,800 85,025
Parkway Properties, Inc................................................ 21,900 721,331
Patriot American Hospitality, Inc...................................... 25,312 791,000
Post Properties, Inc................................................... 12,200 471,225
Prentiss Properties Trust.............................................. 10,300 266,512
Public Storage, Inc.................................................... 24,800 685,100
Reckson Associates Realty Corp......................................... 21,100 560,469
Security Capital Pacific Trust......................................... 8,642 210,109
Simon DeBartolo Group, Inc............................................. 18,100 591,644
Sl Green Reality Corp.................................................. 9,700 252,200
Starwood Lodging Trust................................................. 16,600 890,175
Storage USA, Inc....................................................... 6,000 234,375
Sunstone Hotel Investors, Inc.......................................... 29,900 525,119
The Macerich Co........................................................ 6,600 179,025
Tower Reality Trust Inc.+.............................................. 6,100 148,688
United States Restaurant Properties, Inc............................... 9,850 235,169
Urban Shopping Centers, Inc............................................ 3,200 106,600
Vornado Realty Trust................................................... 20,300 909,694
Weingarten Realty Investors............................................ 1,800 75,038
-------------
22,303,095
-------------
TOTAL COMMON STOCK (cost $23,518,812).................................. 24,842,351
-------------
PREFERRED STOCK -- 3.7%
----------------------------------------------------------------------------------------------------
REAL ESTATE -- 3.7%
Real Estate Companies -- 1.0%
Oasis Residential, Inc., Series A 2.25%................................ 700 17,500
The Rouse Co., Series B 3.0%........................................... 5,400 270,000
Real Estate Investment Trusts -- 2.7%
Equity Residential Properties Trust, Series E 7.0%..................... 24,200 674,575
Security Capital Pacific Trust Convertible, Series A 1.75%............. 400 13,350
Vornado Realty Trust, Series A 6.50%................................... 1,700 113,794
-------------
1,089,219
-------------
TOTAL PREFERRED STOCK (cost $1,090,413)................................ 1,089,219
-------------
TOTAL INVESTMENT SECURITIES (cost $24,609,225)......................... 25,931,570
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 12.6% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FEDERAL AGENCY OBLIGATIONS -- 12.6%
Federal Home Loan Bank Consolidated Discount Note 5.35% due 12/1/97.... $ 130,000 130,000
Federal Home Loan Mortgage Discount Notes 5.46% due 12/1/97............ 3,600,000 3,600,000
-------------
TOTAL SHORT-TERM SECURITIES (cost $3,730,000).......................... 3,730,000
-------------
TOTAL INVESTMENTS --
(cost $28,339,225) 100.3% 29,661,570
Liabilities in excess of other assets -- (0.3) (96,712)
------ -------------
NET ASSETS -- 100.0% $29,564,858
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
See Notes to Financial Statements
- ---------------------
91
<PAGE> 92
- ---------------------
SUNAMERICA SERIES TRUST
AGGRESSIVE GROWTH
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 94.8% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 6.6%
Apparel & Textiles -- 1.5%
Gap, Inc.............................................................. 10,000 $ 536,875
Liz Claiborne, Inc.................................................... 10,000 502,500
Tefron Ltd.+.......................................................... 26,200 550,200
Housing -- 0.6%
D.R.Horton, Inc....................................................... 25,000 445,313
Toll Brothers, Inc.+.................................................. 10,000 241,250
Retail -- 4.5%
The Neiman Marcus Group, Inc.+........................................ 25,000 823,437
Amazon.com., Inc.+.................................................... 7,000 346,500
Ames Department Stores, Inc.+......................................... 65,000 1,105,000
Costco Cos., Inc.+.................................................... 5,000 221,563
CVS Corp.............................................................. 13,000 862,875
Kohl's Corp.+......................................................... 5,000 361,875
Office Depot, Inc.+................................................... 15,500 366,187
Woolworth Corp.+...................................................... 25,000 540,625
------------
6,904,200
------------
CONSUMER STAPLES -- 4.7%
Food, Beverage & Tobacco -- 1.7%
800-JR Cigar, Inc.+................................................... 20,000 550,000
Beringer Wine Estates Holdings, Inc., Class B+........................ 4,900 159,250
Chiquita Brands International, Inc.................................... 25,000 423,438
Fresh Del Monte Produce, Inc.+........................................ 15,000 221,250
Ryan's Family Steak Houses, Inc.+..................................... 45,000 399,375
Household Products -- 3.0%
A.C. Moore Arts & Crafts, Inc.+....................................... 2,000 30,000
Dial Corp. New........................................................ 60,000 1,162,500
Furniture Brands International, Inc.+................................. 10,000 195,625
Scotts Co., Class A+.................................................. 7,000 204,750
Silgan Holdings, Inc.+................................................ 12,000 417,000
Steiner Leisure Ltd.+................................................. 15,000 431,250
Sunbeam Corp.......................................................... 15,000 660,937
------------
4,855,375
------------
ENERGY -- 15.8%
Energy Services -- 13.5%
Anadarko Petroleum Corp............................................... 10,000 650,000
Baker Hughes, Inc..................................................... 10,000 418,750
Cliffs Drilling Co.+.................................................. 17,600 976,800
Cooper Cameron Corp.+................................................. 20,000 1,218,750
Core Laboratories NV+................................................. 30,000 1,087,500
Diamond Offshore Drilling, Inc........................................ 15,400 768,075
Eagle Geophysical, Inc.+.............................................. 3,000 48,750
EVI, Inc.+............................................................ 10,000 514,375
Falcon Drilling Co., Inc.+............................................ 40,000 1,290,000
Friede Goldman International, Inc.+................................... 50,000 1,487,500
Global Marine, Inc.+.................................................. 10,000 263,125
</TABLE>
---------------------
92
<PAGE> 93
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY (continued)
Energy Services (continued)
Marine Drilling Co., Inc. +........................................... 20,000 $ 455,000
Nabors Industries, Inc. +............................................. 20,000 701,250
Noble Drilling Corp.+................................................. 28,000 841,750
Patterson Energy, Inc.+............................................... 20,200 742,350
Rowan Cos., Inc.+..................................................... 10,000 340,000
Seagull Energy Corp.+................................................. 10,000 228,125
Tidewater, Inc........................................................ 3,000 168,187
Trico Marine Services, Inc.+.......................................... 36,400 1,012,375
UTI Energy Corp.+..................................................... 15,000 420,000
Varco International, Inc.+............................................ 6,400 327,600
Energy Sources -- 2.3%
ENSCO International, Inc. +........................................... 26,000 929,500
Kerr-McGee Corp....................................................... 10,000 663,125
KN Energy, Inc........................................................ 10,000 467,500
Smith International, Inc.+............................................ 5,000 320,000
------------
16,340,387
------------
FINANCE -- 19.7%
Banks -- 9.4%
Bankers Trust New York Corp........................................... 17,490 2,073,658
First American Corp................................................... 33,800 1,673,100
First Chicago Corp.................................................... 10,000 782,500
First International Bancorp, Inc...................................... 14,500 197,563
Hamilton Bancorp, Inc.+............................................... 20,000 562,500
Hibernia Corp. Class A................................................ 15,000 271,875
ING Groep NV.......................................................... 15,115 615,936
Long Island Bancorp, Inc.............................................. 5,367 252,920
PNC Bank Corp......................................................... 26,400 1,420,650
Popular Inc........................................................... 16,000 852,000
Summit Bancorp........................................................ 22,500 1,049,062
Financial Services -- 9.0%
Allmerica Financial Corp.............................................. 5,000 242,500
American Capital Strategies Ltd.+..................................... 18,000 333,000
Associates First Capital Corp., Class A............................... 5,000 321,250
Countrywide Credit Industries, Inc.................................... 17,600 720,500
Crestar Financial Corp................................................ 10,000 513,750
Donaldson, Lufkin & Jenrette, Inc..................................... 10,000 728,750
Federal Agricultural Mortgage Corp.+.................................. 4,100 271,625
Hambrecht & Quist Group, Inc.+........................................ 10,000 383,750
Healthcare Financial Partners, Inc.+.................................. 25,400 838,200
Interra Financial, Inc................................................ 9,000 496,687
Jefferies Group, Inc.................................................. 400 28,350
Legg Mason, Inc....................................................... 9,900 478,913
Lehman Brothers Holdings, Inc......................................... 18,000 910,125
Merrill Lynch & Co., Inc.............................................. 5,000 350,938
Metris Cos., Inc.+.................................................... 9,500 361,000
New Century Financial Corp.+.......................................... 25,000 328,125
PaineWebber Group, Inc................................................ 15,000 504,375
Reliance Group Holdings, Inc.......................................... 50,000 637,500
Stirling Cooke Brown Holdings......................................... 24,000 582,000
T + W Financial Corp.+................................................ 15,000 241,875
</TABLE>
- ---------------------
93
<PAGE> 94
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance -- 1.3%
Conseco, Inc.......................................................... 10,000 $ 465,625
Hartford Life, Inc.................................................... 15,000 575,625
Penn Treaty American Corp.+........................................... 10,000 325,000
------------
20,391,227
------------
HEALTHCARE -- 9.8%
Drugs -- 2.3%
IDEC Pharmaceuticals Corp.+........................................... 20,000 698,750
LifeCell Corp.+....................................................... 9,000 43,875
Mylan Laboratories, Inc............................................... 49,000 1,087,188
Watson Pharmaceuticals, Inc.+......................................... 20,000 595,000
Health Services -- 4.9%
Access Health, Inc.+.................................................. 10,000 297,500
Advance Paradigm, Inc.+............................................... 10,000 296,250
Arterial Vascular Engineering, Inc.+.................................. 20,000 1,107,500
Assisted Living Concepts, Inc.+....................................... 30,000 513,750
CORR Therapeutics, Inc.+.............................................. 20,000 455,000
HEALTHSOUTH Corp.+.................................................... 20,000 525,000
Neurex Corp.+......................................................... 20,000 312,500
NovaCare, Inc.+....................................................... 50,000 618,750
PhyCor, Inc.+......................................................... 10,000 246,250
Vision Twenty One, Inc.+.............................................. 70,000 669,375
Medical Products -- 2.6%
Guidant Corp.......................................................... 12,500 803,125
Gulf South Medical Supply, Inc. +..................................... 15,000 489,375
Osteotech, Inc.+...................................................... 10,000 302,500
Protein Design Labs, Inc.+............................................ 20,000 840,000
Rexall Sundown, Inc.+................................................. 10,000 237,500
------------
10,139,188
------------
INDUSTRIAL & COMMERCIAL -- 10.2%
Aerospace & Military Technology -- 0.4%
REMEC, Inc.+.......................................................... 17,000 397,375
Business Services -- 6.2%
American Disposal Services, Inc.+..................................... 20,000 712,500
Budget Group, Inc., Class A+.......................................... 5,000 177,500
Checkfree Corp.+...................................................... 15,000 392,812
Corrections Corp. of America+......................................... 5,000 173,125
Culligan Water Technologies, Inc.+.................................... 15,000 673,125
Hvide Marine, Inc., Class A+.......................................... 3,000 84,938
Jackson Hewitt, Inc.+................................................. 25,000 1,676,562
JLK Direct Distribution, Inc.+........................................ 12,600 358,312
NCO Group, Inc.+...................................................... 5,000 189,375
Personnel Group Of America, Inc.+..................................... 10,000 365,625
Philip Services Corp.+................................................ 10,000 158,125
Pre-Paid Legal Services, Inc.+........................................ 10,000 283,125
Seitel, Inc.+......................................................... 15,000 577,500
Snyder Communications, Inc............................................ 5,000 169,688
Transcrypt Internaional, Inc.+........................................ 5,200 120,900
Vestcom International, Inc.+.......................................... 15,000 303,750
Machinery -- 1.0%
IRI International Corp.+.............................................. 2,000 32,250
Kennametal, Inc....................................................... 20,000 1,053,750
</TABLE>
---------------------
94
<PAGE> 95
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Transportation -- 2.6%
Airborne Freight Corp................................................. 10,000 $ 636,875
Caliber System, Inc................................................... 25,000 1,335,938
CNF Transportation, Inc............................................... 15,000 652,500
Consolidated Freightways Corp.+....................................... 4,000 62,500
------------
10,588,150
------------
INFORMATION & ENTERTAINMENT -- 4.9%
Broadcasting & Media -- 2.6%
Cinar Films, Inc., Class B+........................................... 22,000 907,500
Nextel Communications, Inc., Class A+................................. 20,000 505,000
Tele-Communications Liberty Media Group, Inc., Series A+.............. 15,000 506,250
TV Azteca SA de CV ADR+............................................... 6,000 124,125
Univision Communications, Inc., Class A+.............................. 10,000 665,625
Entertainment Products -- 0.4%
Mattel, Inc........................................................... 10,000 400,625
Leisure & Tourism -- 1.9%
CapStar Hotel Co.+.................................................... 20,000 748,750
Carnival Corp., Class A............................................... 10,000 540,625
Four Seasons Hotels, Inc.............................................. 7,000 224,875
Ryanair Holdings PLC ADR+............................................. 16,200 433,350
------------
5,056,725
------------
INFORMATION TECHNOLOGY -- 18.0%
Communication Equipment -- 2.1%
CIENA Corp.+.......................................................... 5,000 270,000
Digital Microwave Corp.+.............................................. 20,000 315,000
Tekelec, Inc.+........................................................ 20,000 757,500
Tellabs, Inc.+........................................................ 6,000 312,000
World Access, Inc.+................................................... 20,000 490,000
Computers & Business Equipment -- 0.2%
Ikon Office Solutions, Inc............................................ 7,500 228,281
Electronics -- 4.9%
Aehr Test Systems+.................................................... 4,000 36,500
Alpha Industries, Inc.+............................................... 10,000 186,250
DII Group, Inc.+...................................................... 20,000 447,500
Jabil Circuit, Inc.+.................................................. 15,000 721,875
Lernout & Hauspie Speech Products NV+................................. 10,000 479,375
Level One Communications, Inc.+....................................... 20,000 835,000
PMC-Sierra, Inc.+..................................................... 20,000 550,000
RF Micro Devices, Inc.+............................................... 10,000 141,250
Tandy Corp............................................................ 20,000 860,000
Uniphase Corp.+....................................................... 5,000 200,625
Vitesse Semiconductor Corp.+.......................................... 5,500 246,125
Yurie System, Inc.+................................................... 15,000 373,125
</TABLE>
- ---------------------
95
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Software -- 8.4%
Applied Voice Technology, Inc.+....................................... 10,000 $ 280,000
Baan Co. NV+.......................................................... 5,000 357,500
Cambridge Technology Partners, Inc.+.................................. 10,000 388,750
Check Point Software Technologies, Ltd.+.............................. 10,000 451,250
Computer Task Group, Inc.............................................. 19,300 607,950
Compuware Corp.+...................................................... 30,000 1,048,125
Concord Communications, Inc.+......................................... 2,000 43,750
HBO & Co.+............................................................ 20,000 897,500
Keane, Inc.+.......................................................... 15,000 475,313
Legato Systems, Inc.+................................................. 10,000 381,250
Lycos Inc.+........................................................... 20,000 611,250
New Era of Networks, Inc.+............................................ 10,000 127,500
Novell, Inc.+......................................................... 15,000 138,750
QuadraMed Corp.+...................................................... 25,000 653,125
The Learning Company Inc.+............................................ 20,000 362,500
Veritas DGC, Inc.+.................................................... 15,000 600,000
Veritas Software Co................................................... 15,000 655,781
Yahoo!, Inc.+......................................................... 12,500 639,062
Telecommunications -- 2.4%
At Home Corp., Series A+.............................................. 10,000 206,250
COLT Telecommunications Group PLC ADR+................................ 5,000 217,500
Globalstar Telecommunications Ltd.+................................... 10,000 495,625
Lucent Technologies, Inc.............................................. 5,000 400,625
Pacific Gateway Exchange, Inc.+....................................... 10,000 388,750
Teleport Communications Group+........................................ 15,000 735,000
------------
18,613,512
------------
REAL ESTATE -- 3.1%
Real Estate Companies -- 0.6%
Security Capital Group, Inc., Class B+................................ 10,000 321,250
Westfield America, Inc................................................ 20,000 333,750
Real Estate Investment Trusts -- 2.5%
CCA Prison Reality Trust.............................................. 5,000 178,125
Equity Office Properties Trust........................................ 10,000 324,375
Innkeepers USA Trust.................................................. 20,000 321,250
Ocwen Asset Investment Corp........................................... 12,500 227,344
Starwood Lodging Trust................................................ 15,000 804,375
Vornado Realty Trust.................................................. 15,000 672,187
------------
3,182,656
------------
UTILITIES -- 2.0%
Gas & Pipeline Utilities -- 1.7%
Aquila Gas Pipeline Corp.............................................. 50,000 706,250
TransCoastal Marine Services, Inc.+................................... 12,000 234,000
Western Gas Resources, Inc............................................ 35,000 800,626
Telephone -- 0.3%
McLeodUSA, Inc., Class A+............................................. 10,000 370,000
------------
2,110,876
------------
TOTAL COMMON STOCK (cost $83,284,878)................................. 98,182,296
------------
</TABLE>
---------------------
96
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<TABLE>
<CAPTION>
PRINCIPAL
U.S. GOVERNMENT AND AGENCIES -- 2.3% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT & AGENCIES -- 2.3%
United States Treasury Bonds 6.13% 2027............................... $1,200,000 $ 1,213,500
United States Treasury Notes 6.13% 2007............................... 1,200,000 1,223,064
-------------
2,436,564
-------------
TOTAL U.S. GOVERNMENT AND AGENCIES (cost $2,424,112).................. 2,436,564
-------------
TOTAL INVESTMENT SECURITIES (cost $85,708,990)........................ 100,618,860
-------------
REPURCHASE AGREEMENT -- 5.8%
----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 5.8%
Joint Repurchase Agreement Account (Note 3)
(cost $5,956,000)................................................... 5,956,000 5,956,000
-------------
TOTAL INVESTMENTS --
(cost $91,664,990) 102.9% 106,574,860
Liabilities in excess of other assets -- (2.9) (2,971,396)
------ -------------
NET ASSETS -- 100.0% $103,603,464
====== ==============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
- ---------------------
97
<PAGE> 98
- ---------------------
SUNAMERICA SERIES TRUST
EMERGING MARKETS INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK -- 82.2% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ARGENTINA -- 5.4%
Banco Frances del Rio de la Plata SA ADR (Finance).................... 17,500 $ 157,558
Irsa Inversiones y Represenaciones SAt GDR (Real Estate).............. 2,400 73,350
Perez Cos. SA (Multi-industry)........................................ 31,000 222,041
Telefonica de Argentina SA ADR (Utilities) GDR........................ 11,000 363,687
YPF Sociedad Anonima ADR (Energy)..................................... 8,000 268,500
------------
1,085,136
------------
BRAZIL -- 9.6%
Brazil Realty SA Empreendimentos & Participacoes GDR (Real
Estate)(1)*......................................................... 2,900 50,750
Centrais Electricas de Santa Brasileiras SA (Utilities)............... 1,900 198,678
Companhia Siderurgica Nacional (Materials)............................ 2,100,000 56,793
Companhia Siderurgica Nacional ADR (Materials)........................ 2,500 67,608
Companhia Vale do Rio Doce (Materials)................................ 18,000 322,897
Compania Brasileira de Distribuidora GDR (Industrial & Commercial).... 15,700 233,660
Compania Energetica de Minas ADR non voting (Materials)............... 10,400 506,251
Petroleo Brasileiro SA ADR (Energy)................................... 9,100 198,516
Telecomunicacoes Brasileirassa SA ADR (Information Technology)........ 2,750 287,031
------------
1,922,184
------------
CANADA -- 2.1%
Bell Canada International, Inc. (Utilities)+.......................... 5,000 72,734
Hurricane Hydrocarbons Ltd. (Energy).................................. 21,700 133,307
Super Sol Ltd. ADR (Materials)........................................ 15,700 219,800
------------
425,841
------------
CHILE -- 4.2%
Compania de Telecomunicaciones de Chile SA ADR (Utilities)............ 10,000 270,625
Distribucion y Servicio D&S SA ADR (Consumer Discretionary)+.......... 13,600 237,150
Linea Aerea Nacional Chile SA ADR (Information & Entertainment)....... 9,700 122,462
Madeco SA ADR (Materials)............................................. 11,800 199,125
------------
829,362
------------
CHINA -- 1.3%
Beijing Datang Pow (Utilities)........................................ 156,000 72,145
Guangdong Kelon Electric Holdings (Industrial & Commercial)........... 100,000 111,251
Qingling Motors Co., Ltd. (Consumer Discretionary).................... 139,000 74,172
------------
257,568
------------
HONG KONG -- 2.7%
Asia Satellite Telecom Holdings Ltd. (Information Technology)+........ 29,000 63,400
Cheung Kong Holdings Ltd. (Real Estate)............................... 40,000 93,140
China Foods Holdings (Consumer Staples)............................... 116,000 40,891
Guangnan Holdings (Consumer Staples).................................. 70,000 52,521
Hutchison Whampoa Ltd. (Multi-industry)............................... 18,000 119,918
New World Development Co. Ltd. (Real Estate)+......................... 53,900 106,331
Ng Fung Hong (Consumer Staples)....................................... 56,000 54,694
------------
530,895
------------
</TABLE>
---------------------
98
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDIA -- 4.2%
BSES Ltd. GDR (Industrial & Commercial)............................... 5,600 $ 75,600
Gujarat Ambuja Cements Ltd. GDR (Industrial & Commercial)............. 14,000 112,000
Hindalco Industries Ltd. GDR (Materials)*............................. 4,200 94,500
Indian Hotel Co., Ltd. (Information & Entertainment).................. 2,400 45,600
Larsen & Torbo GDR (Industrial & Commercial).......................... 3,000 29,250
Ranbaxy Laboratories Ltd. (Healthcare)................................ 4,100 95,325
Reliance Industries GDS (Materials)*.................................. 14,000 108,850
State Bank of India GDR (Finance)..................................... 8,200 108,650
Tata Engineering & Locomotive Co., Ltd. GDR (Consumer
Discretionary)...................................................... 10,000 81,378
Videsh Sanchar Nigam Ltd. GDR (Information Technology)*............... 7,000 92,750
------------
843,903
------------
INDONESIA -- 2.3%
Astra International, Inc. (Consumer Discretionary).................... 50,000 26,045
Gudang Garam Perus (Consumer Staples)................................. 30,000 63,742
PT Astra Agro Niaga Lestari Tbk (Energy)(1)........................... 77,000 32,721
PT Indah Kiat Pulp & Paper Corp. (Materials).......................... 237,500 55,346
PT Indorama Synthetics (Consumer Discretionary)....................... 70,000 35,984
PT Indostat alien (Information Technology)+........................... 31,000 70,329
PT Telekomunikasi Indonesia ADR alien (Information Technology)+....... 8,000 117,000
Ramayana Lestari Sentosa (Consumer Discretionary)..................... 45,000 52,125
------------
453,292
------------
KOREA -- 1.5%
Daewoo Heavy Industries (Industrial & Commercial)..................... 7,000 31,962
Housing & Commercial Bank, Korea GDR (Finance)*....................... 7,100 41,712
Korea Mobile Telecommunications Corp. (Information & Entertainment)... 100 32,591
LG Electronics, Inc. (Consumer Goods)................................. 3,000 33,604
Samsung Electronics Co. (Information Technology)...................... 4,500 161,223
------------
301,092
------------
MALAYSIA -- 2.6%
Berjaya Sports Toto Berhad (Information & Entertainment).............. 57,000 124,399
IJM Corp. Berhad (Industrial & Commercial)............................ 102,000 37,829
KFC Holdings (Information & Entertainment)............................ 58,000 86,042
Malakoff Berhad (Industrial & Commercial)............................. 53,000 83,161
Malaysian Assurance (Finance)+........................................ 44,000 51,466
PPB Oil Palms Berhad (Consumer Staples)............................... 65,000 56,002
Telekom Malaysia Berhad (Information Technology)...................... 36,000 80,108
------------
519,007
------------
MEXICO -- 17.8%
Alfa SA de CV, Class A (Multi-industry)+.............................. 66,000 495,793
Cemex SA de CV Class B ADR (Materials)................................ 71,100 349,722
Cifra SA de CV (Consumer Staples)..................................... 87,000 182,188
Corporacion Moctezuma SA de CV (Materials)............................ 66,700 79,259
Fomento Economico Mexicano SA de CV, Class B (Consumer Staples)+...... 61,000 496,853
G Accion SA de CV ADR (Real Estate)(1)*............................... 7,400 69,375
Grupo Financiero Banamex-Accival SA de CV., Class B (Finance)......... 100,000 219,151
Grupo Imsa SA de CV ADR (Multi-industry).............................. 12,300 319,031
Grupo Televisa SA de CV, ADR (Information & Entertainment)............ 11,000 407,000
Kimberly-Clark de Mexico SA de CV ADR (Materials)..................... 44,600 196,026
Panamerican Beverages, Inc., Class A ADR (Consumer Staples)........... 13,500 462,375
Telefonos de Mexico SA ADR (Utilities)................................ 5,800 287,100
------------
3,563,873
------------
</TABLE>
- ---------------------
99
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
PHILIPPINES -- 2.9%
Ayala Land, Inc. Class B (Real Estate)................................ 292,300 $ 114,996
Belle Corp. (Real Estate)............................................. 746,000 35,859
Benpres Holdings Corp. GDR (Industrial & Commercial)(1)............... 9,000 25,875
International Container Systems, Inc. (Materials)+.................... 413,400 67,421
Ionics Circuit, Inc. (Information Technology)......................... 60,200 34,880
Manila Electric Co. (Utilities)....................................... 14,000 48,469
Philippine Long Distance Telephone Co. (Utilities).................... 2,200 52,876
Philippine Long Distance Telephone Co. ADR (Utilities)................ 3,700 91,575
SM Prime Holdings (Real Estate)....................................... 480,000 75,537
Solid Group, Inc. (Industrial & Commercial)........................... 650,000 34,220
------------
581,708
------------
POLAND -- 1.5%
Bank Handlowy Warsza (Finance)........................................ 12,200 143,144
KGHM Polska Miedz SA (Materials)...................................... 19,000 156,750
------------
299,894
------------
PORTUGAL -- 2.7%
Colep-Companhia Portuguesa de Embalagens (Materials).................. 17,100 284,683
Electricidad de Portugal SA (Utilities)............................... 5,200 93,987
Investec Consultoria International SA (Information & Entertainment)... 5,200 158,857
------------
537,527
------------
RUSSIA -- 4.3%
Ao Mosenergo (Energy)(1)*............................................. 4,400 132,000
Ao Tatneft ADR (Utilities)*........................................... 2,200 270,990
Oil Co Lukoil ADR (Utilities)......................................... 2,300 184,288
Tatneft (Energy) ADR*................................................. 700 86,224
Unified Energy Systems Russia GDR (Utilities)(1)...................... 8,000 182,000
------------
855,502
------------
SINGAPORE -- 0.4%
Asia Pulp & Paper Ltd. ADR (Materials)+............................... 7,250 78,844
------------
SOUTH AFRICA -- 5.9%
Energy Africa Ltd GDR (Energy)*....................................... 3,600 81,000
Engen Botswana Ltd. (Energy).......................................... 39,600 222,106
First National Bank (Finance)......................................... 30,700 259,072
Gencor (Materials).................................................... 7,000 10,878
Liberty Life Association of Africa Ltd. (Finance)..................... 13,200 334,177
Sasol Ltd. (Multi-industry)........................................... 26,200 263,968
------------
1,171,201
------------
TAIWAN, PROVINCE OF CHINA -- 3.7%
Acer, Inc. GDR (Information Technology)............................... 7,950 60,420
ASE Test Ltd. (Information Technology)+............................... 2,850 159,600
Asustek Computer, Inc. GDR (Information Technology)*.................. 15,000 229,971
China Steel Corp. ADR (Materials)*.................................... 4,700 68,710
China Steel Corp. GDS (Materials)..................................... 4,800 68,520
Siliconware Precision Industries Co. GDR (Information Technology)..... 11,605 159,278
------------
746,499
------------
</TABLE>
---------------------
100
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
THAILAND -- 1.2%
Advanced Information Services PCL alien shares (Information &
Entertainment)...................................................... 9,000 $ 46,957
Electricity Generating PCL (Utilities)................................ 35,000 67,391
Industrial Finance Corp. of Thailand alien shares (Finance)........... 56,000 32,348
PTT Exploration & Production PCL alien shares (Energy)................ 8,000 88,646
------------
235,342
------------
TURKEY -- 2.3%
Dogan Sirketler Grubu Holdings SA (Multi-industry).................... 2,180,000 82,434
Haci Omer Sabanci Holdings SA ADR (Finance)........................... 12,900 183,825
Yapi Ve Kredi Bankasi SA ADR (Finance)................................ 3,700 117,938
Yapi Ve Kredi Bankasi SA GDR (Finance)................................ 2,400 76,500
------------
460,697
------------
UNITED KINGDOM -- 2.2%
Billiton (Materials).................................................. 60,000 148,194
Lonrho PLC (Multi-industry)........................................... 95,800 143,942
Ramco Energy PLC-ADR (Energy)......................................... 11,400 147,487
------------
439,623
------------
UNITED STATES -- 0.3%
At Entertainment, Inc. (Information & Entertainment).................. 6,000 65,250
------------
VENEZUELA -- 1.1%
Compania Anon Nacional Tele de Venezuela ADR (Information &
Entertainment)...................................................... 3,400 134,300
Siderurgica Venezolana "Sivensa" SA (Industrial & Commercial)......... 18,000 81,000
------------
215,300
------------
TOTAL COMMON STOCK (cost $19,682,170)................................. 16,419,540
------------
PREFERRED STOCK -- 2.4%
----------------------------------------------------------------------------------------------------
BRAZIL -- 2.4%
Banco Bradesco SA (Finance)........................................... 26,000,000 189,850
Banco Itau SA (Finance)+ 8.00%........................................ 450,000 201,208
Multicanal Participacoes SA ADR (Information Technology).............. 17,600 83,600
------------
474,658
------------
TOTAL PREFERRED STOCK (cost $683,083)................................. 474,658
------------
PRINCIPAL
BONDS & NOTES -- 2.0% AMOUNT
----------------------------------------------------------------------------------------------------
INDIA -- 0.4%
Mahindra + Mahindra Ltd. 5.00% 2001+.................................. $ 90,000 83,952
------------
TAIWAN, PROVINCE OF CHINA -- 1.6%
Delta Electronic, Inc. zero coupon 2004............................... 100,000 127,030
Formosa Chemicals & Fibre Co. 1.75% 2001.............................. 110,000 117,150
Nan Ya Plastics Corp. 1.75% 2001...................................... 60,000 67,464
------------
311,644
------------
TOTAL BONDS & NOTES (cost $492,234)................................... 395,596
------------
</TABLE>
- ---------------------
101
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<TABLE>
<CAPTION>
RIGHTS -- 0.0%+ SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
KOREA -- 0.0%
Housing & Commercial Bank, Korea GDR (Finance)*(1).................... 423 $ 0
WARRANTS -- 0.0%+
----------------------------------------------------------------------------------------------------
PHILIPPINES -- 0.0%
Belle Corp (Real Estate)(1)........................................... 129,200 0
------------
TOTAL INVESTMENT SECURITIES (cost $20,857,487)........................ 17,289,794
------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 10.0% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FEDERAL AGENCY OBLIGATIONS -- 10.0%
Federal Home Loan Mortgage Discount Notes 5.50% due 12/11/97.......... $ 1,000,000 998,472
Federal Home Loan Mortgage Discount Notes 5.47% due 12/17/97.......... 1,000,000 997,569
------------
TOTAL SHORT-TERM SECURITIES (cost $1,996,041)......................... 1,996,041
------------
REPURCHASE AGREEMENT -- 3.9%
----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 3.9%
Agreement with SBC Warburg, bearing interest of 5.67% dated 11/28/97,
to be repurchased 12/1/97 in the amount of $784,370 and
collateralized by $528,000 U.S. Treasury Notes 10.625% due 08/15/15,
approximate aggregate value $799,918 (cost $784,000)................ 784,000 784,000
TOTAL INVESTMENTS --
(cost $23,637,528) 100.5% 20,069,835
Liabilities in excess of other assets -- (0.5) (90,742)
------- ------------
NET ASSETS -- 100.0% $19,979,093
======= =============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
(1) Fair valued securities; see Note 2
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
GDS -- Global Depository Shares
See Notes to Financial Statements
---------------------
102
<PAGE> 103
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
CASH CORPORATE HIGH-YIELD
MANAGEMENT GLOBAL BOND BOND BOND
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*........................ $ -- $ 80,131,563 $60,368,655 $186,227,046
Short-term securities*.................................. 141,966,188 3,047,000 1,287,574 --
Repurchase agreements (cost equals market).............. 13,341,000 -- -- 11,659,000
Cash.................................................... 98 73 237 1,449,115
Foreign currency........................................ -- -- -- --
Receivables for--
Dividends and accrued interest......................... 765,335 2,126,992 1,280,323 3,412,574
Fund shares sold....................................... 554,205 63,875 161,673 378,474
Foreign currency contracts............................. -- 9,797,009 -- --
Sales of investments................................... -- 6,486,159 59,512 5
Variation margin on futures contract................... -- -- -- --
Prepaid expenses........................................ 6,304 32,422 1,750 5,592
Deferred organizational expenses........................ 1,220 686 686 672
Unrealized appreciation on forward foreign currency
contracts.............................................. -- 2,053,926 -- --
--------------------------------------------------------------
156,634,350 103,739,705 63,160,410 203,132,478
--------------------------------------------------------------
LIABILITIES:
Payables for--
Fund shares redeemed................................... 378,564 25,974 15,392 102,928
Management fees........................................ 74,645 50,539 33,758 102,750
Foreign currency contracts............................. -- 9,857,325 -- --
Purchases of investments............................... -- 3,923,947 785,637 7,220,901
Unrealized depreciation on forward foreign currency
contracts.............................................. -- 761,859 -- --
Other accrued expenses.................................. 61,687 77,538 54,005 66,893
--------------------------------------------------------------
514,896 14,697,182 888,792 7,493,472
--------------------------------------------------------------
NET ASSETS.............................................. $156,119,454 $ 89,042,523 $62,271,618 $195,639,006
==============================================================
Shares of beneficial interest outstanding (unlimited
shares authorized)..................................... 14,542,029 7,733,604 5,395,202 16,552,238
Net asset value per share............................... $ 10.74 $ 11.51 $ 11.54 $ 11.82
==============================================================
COMPOSITION OF NET ASSETS:
Capital paid in......................................... $149,355,823 $ 80,711,428 $57,398,970 $178,477,367
Accumulated undistributed net investment income
(loss)................................................. 6,768,071 3,290,478 3,269,106 13,972,776
Accumulated undistributed net realized gain (loss) on
investments, future contracts and options contracts.... (684) 3,335,754 (274,142) 1,523,707
Unrealized appreciation (depreciation) on investments... (3,756) 423,598 1,877,684 1,665,156
Unrealized foreign exchange gain (loss) on other assets
and liabilities........................................ -- 1,281,265 -- --
--------------------------------------------------------------
$156,119,454 $ 89,042,523 $62,271,618 $195,639,006
==============================================================
---------------
* Cost
Investment securities.................................. $ -- $ 79,707,965 $58,491,965 $184,561,890
==============================================================
Short-term securities.................................. $141,969,944 $ 3,047,000 $ 1,286,580 $ --
==============================================================
<CAPTION>
BALANCED
PHOENIX
WORLDWIDE SUNAMERICA INVESTMENT
HIGH INCOME BALANCED COUNSEL
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value*........................ $119,757,721 $42,169,455 $ 85,111,395
Short-term securities*.................................. -- -- 15,319,522
Repurchase agreements (cost equals market).............. 8,097,000 2,364,000 --
Cash.................................................... 232 1,595 3,977
Foreign currency........................................ 59 -- --
Receivables for--
Dividends and accrued interest......................... 2,303,684 246,894 321,617
Fund shares sold....................................... 176,382 270,950 140,918
Foreign currency contracts............................. -- -- --
Sales of investments................................... 851,147 -- 1,451,011
Variation margin on futures contract................... -- -- --
Prepaid expenses........................................ 3,157 871 2,928
Deferred organizational expenses........................ -- -- --
Unrealized appreciation on forward foreign currency
contracts.............................................. -- -- --
---------------------------------------------
131,189,382 45,053,765 102,351,368
---------------------------------------------
LIABILITIES:
Payables for--
Fund shares redeemed................................... 58,525 8,251 25,768
Management fees........................................ 98,981 26,829 52,534
Foreign currency contracts............................. -- -- --
Purchases of investments............................... 5,748,483 362,849 6,502,832
Unrealized depreciation on forward foreign currency
contracts.............................................. -- -- --
Other accrued expenses.................................. 59,072 34,680 49,198
---------------------------------------------
5,965,061 432,609 6,630,332
---------------------------------------------
NET ASSETS.............................................. $125,224,321 $44,621,156 $ 95,721,036
=============================================
Shares of beneficial interest outstanding (unlimited
shares authorized)..................................... 9,486,861 3,317,577 6,489,618
Net asset value per share............................... $ 13.20 $ 13.45 $ 14.75
=============================================
COMPOSITION OF NET ASSETS:
Capital paid in......................................... $113,325,866 $38,981,052 $ 79,442,975
Accumulated undistributed net investment income
(loss)................................................. 6,495,311 461,406 2,153,212
Accumulated undistributed net realized gain (loss) on
investments, future contracts and options contracts.... 7,523,289 1,613,564 9,547,417
Unrealized appreciation (depreciation) on investments... (2,120,145) 3,565,134 4,577,432
Unrealized foreign exchange gain (loss) on other assets
and liabilities........................................ -- -- --
---------------------------------------------
$125,224,321 $44,621,156 $ 95,721,036
=============================================
---------------
* Cost
Investment securities.................................. $121,877,866 $38,604,321 $ 80,533,932
=============================================
Short-term securities.................................. $ -- $ -- $ 15,319,553
=============================================
</TABLE>
See Notes to Financial Statements
- ---------------------
103
<PAGE> 104
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES (continued)
NOVEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
ASSET GROWTH- FEDERATED
ALLOCATION UTILITY INCOME VALUE
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*........................ $497,266,007 $21,645,823 $565,192,040 $56,166,372
Short-term securities*.................................. 10,196,715 2,801,000 61,326,116 3,130,000
Repurchase agreements (cost equals market).............. 52,504,000 -- -- --
Cash.................................................... 945,534 882 459 823
Foreign currency........................................ -- 877 -- --
Receivables for--
Dividends and accrued interest......................... 2,742,334 55,313 568,010 103,415
Fund shares sold....................................... 791,649 48,346 958,580 153,937
Foreign currency contracts............................. -- -- -- --
Sales of investments................................... 12,276,079 110,198 -- 273,156
Variation margin on futures contract................... -- -- -- --
Prepaid expenses........................................ 37,340 209 15,996 1,099
Deferred organizational expenses........................ 686 211 672 --
Due from Adviser........................................ -- 1,169 -- --
-------------------------------------------------------------
576,760,344 24,664,028 628,061,873 59,828,802
-------------------------------------------------------------
LIABILITIES:
Payables for--
Fund shares redeemed................................... 128,952 9,738 268,316 10,747
Management fees........................................ 255,970 13,108 288,149 34,009
Foreign currency contracts............................. -- -- -- --
Purchases of investments............................... 49,666,164 241,720 5,342,717 720,993
Variation margin on futures contract................... 2,272 -- 3,200 --
Unrealized depreciation on currency swap agreement...... 8,410 -- -- --
Other accrued expenses.................................. 113,049 33,335 96,995 39,109
-------------------------------------------------------------
50,174,817 297,901 5,999,377 804,858
-------------------------------------------------------------
NET ASSETS.............................................. $526,585,527 $24,366,127 $622,062,496 $59,023,944
=============================================================
Shares of beneficial interest outstanding (unlimited
shares authorized)..................................... 32,487,541 1,887,046 29,882,556 4,247,184
Net asset value per share............................... $ 16.21 $ 12.91 $ 20.82 $ 13.90
=============================================================
COMPOSITION OF NET ASSETS:
Capital paid in......................................... $413,144,255 $21,043,201 $438,003,681 $50,587,529
Accumulated undistributed net investment income
(loss)................................................. 11,185,024 419,322 4,138,569 322,155
Accumulated undistributed net realized gain (loss) on
investments, future contracts and options contracts.... 51,414,744 850,166 31,705,009 1,769,566
Unrealized appreciation (depreciation) on investments... 50,593,662 2,053,447 148,026,437 6,344,694
Unrealized foreign exchange gain (loss) on other assets
and liabilities........................................ 627 (9) -- --
Unrealized appreciation (depreciation) on futures
contracts and written options contracts and currency
swap agreements........................................ 247,215 -- 188,800 --
-------------------------------------------------------------
$526,585,527 $24,366,127 $622,062,496 $59,023,944
=============================================================
---------------
* Cost
Investment securities.................................. $446,573,914 $19,592,376 $417,165,603 $49,821,678
=============================================================
Short-term securities.................................. $ 10,295,146 $ 2,801,000 $ 61,326,116 $ 3,130,000
=============================================================
<CAPTION>
GROWTH/
PHOENIX
VENTURE PUTMAN INVESTMENT
VALUE GROWTH COUNSEL
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value*........................ $1,012,053,997 $222,541,578 $215,405,981
Short-term securities*.................................. 126,103,921 -- 2,214,752
Repurchase agreements (cost equals market).............. -- 12,228,000 --
Cash.................................................... 736,601 221 2,557
Foreign currency........................................ -- -- --
Receivables for--
Dividends and accrued interest......................... 804,672 164,008 127,576
Fund shares sold....................................... 1,873,756 399,157 98,218
Foreign currency contracts............................. -- -- --
Sales of investments................................... -- 5,462,669 3,842,655
Variation margin on futures contract................... -- -- --
Prepaid expenses........................................ 35,473 6,843 7,371
Deferred organizational expenses........................ -- 672 1,248
Due from Adviser........................................ -- -- --
------------------------------------------------
1,141,608,420 240,803,148 221,700,358
------------------------------------------------
LIABILITIES:
Payables for--
Fund shares redeemed................................... 249,291 194,394 49,264
Management fees........................................ 665,592 155,558 115,904
Foreign currency contracts............................. -- -- --
Purchases of investments............................... 465,655 5,665,775 2,972,257
Variation margin on futures contract................... -- -- --
Unrealized depreciation on currency swap agreement...... -- -- --
Other accrued expenses.................................. 174,595 61,207 67,115
------------------------------------------------
1,555,133 6,076,934 3,204,540
------------------------------------------------
NET ASSETS.............................................. $1,140,053,287 $234,726,214 $218,495,818
================================================
Shares of beneficial interest outstanding (unlimited
shares authorized)..................................... 53,109,248 12,258,209 13,988,236
Net asset value per share............................... $ 21.47 $ 19.15 $ 15.62
================================================
COMPOSITION OF NET ASSETS:
Capital paid in......................................... $ 849,021,743 $145,094,700 $155,204,329
Accumulated undistributed net investment income
(loss)................................................. 7,882,608 333,117 1,533,717
Accumulated undistributed net realized gain (loss) on
investments, future contracts and options contracts.... 41,536,483 43,684,393 36,995,035
Unrealized appreciation (depreciation) on investments... 241,611,999 45,614,004 24,762,737
Unrealized foreign exchange gain (loss) on other assets
and liabilities........................................ 454 -- --
Unrealized appreciation (depreciation) on futures
contracts and written options contracts and currency
swap agreements........................................ -- -- --
------------------------------------------------
$1,140,053,287 $234,726,214 $218,495,818
================================================
---------------
* Cost
Investment securities.................................. $ 770,441,998 $176,927,574 $190,643,244
================================================
Short-term securities.................................. $ 126,103,921 $ -- $ 2,214,752
================================================
</TABLE>
See Notes to Financial Statements
- ---------------------
104
<PAGE> 105
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES (continued)
NOVEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
ALLIANCE GLOBAL GROWTH & DIVERSIFIED
GROWTH EQUITIES INCOME EQUITIES
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*........................ $698,295,444 $327,787,768 $40,266,738 $205,247,862
Short-term securities*.................................. 8,973,304 11,473,000 1,994,201 --
Repurchase agreements (cost equals market).............. -- -- 917,000 44,550,000
Cash.................................................... 813 385,923 392 16,023
Foreign currency........................................ -- 345,112 -- 437,864
Receivables for--
Dividends and accrued interest......................... 325,867 557,501 58,554 671,626
Fund shares sold....................................... 1,278,511 264,049 199,328 305,909
Foreign currency contracts............................. -- -- 596,320 4,052,939
Sales of investments................................... 1,924,478 362,414 208,780 787,282
Variation margin on futures contract................... -- -- -- --
Prepaid expenses........................................ 17,936 11,563 615 8,524
Deferred organizational expenses........................ 672 -- 5,859 --
Unrealized appreciation on forward foreign currency
contracts.............................................. -- 1,468,715 161 1,779,620
Due from Adviser........................................ -- -- 14,713 --
--------------------------------------------------------------
710,817,025 342,656,045 44,262,661 257,857,649
--------------------------------------------------------------
LIABILITIES:
Payables for--
Fund shares redeemed................................... 244,428 177,177 24,750 58,637
Management fees........................................ 323,021 210,552 32,596 202,250
Foreign currency contracts............................. -- -- 594,995 4,045,331
Purchases of investments............................... 5,598,029 -- 541,187 3,724,039
Variation margin on futures contract................... 600 -- -- --
Unrealized depreciation on forward foreign currency
contracts.............................................. -- 378,320 125,209 564,241
Other accrued expenses.................................. 117,680 250,802 98,433 336,439
--------------------------------------------------------------
6,283,758 1,016,851 1,417,170 8,930,937
--------------------------------------------------------------
NET ASSETS.............................................. $704,533,267 $341,639,194 $42,845,491 $248,926,712
==============================================================
Shares of beneficial interest outstanding (unlimited
shares authorized)..................................... 31,224,923 21,381,428 4,115,661 21,967,802
Net asset value per share............................... $ 22.56 $ 15.98 $ 10.41 $ 11.33
==============================================================
COMPOSITION OF NET ASSETS:
Capital paid in......................................... $519,726,389 $275,796,919 $42,824,530 $236,984,807
Accumulated undistributed net investment income gain
(loss)................................................. 1,954,191 1,687,906 76,139 653,091
Accumulated undistributed net realized gain (loss) on
investments, future contracts and options contracts.... 81,181,841 25,596,334 331,191 (203,381)
Unrealized appreciation (depreciation) on investments... 101,678,346 37,474,152 (263,491) 10,283,503
Unrealized foreign exchange gain (loss) on other assets
and liabilities........................................ -- 1,083,883 (122,878) 1,208,692
Unrealized appreciation (depreciation) on futures
contracts and written options contracts and currency
swap agreements........................................ (7,500) -- -- --
--------------------------------------------------------------
$704,533,267 $341,639,194 $42,845,491 $248,926,712
==============================================================
---------------
* Cost
Investment securities.................................. $596,617,098 $290,313,616 $40,530,229 $194,964,359
==============================================================
Short-term securities.................................. $ 8,973,304 $ 11,473,000 $ 1,994,201 $ --
==============================================================
<CAPTION>
REAL AGGRESSIVE EMERGING
ESTATE GROWTH MARKETS
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value*........................ $25,931,570 $100,618,860 $17,289,794
Short-term securities*.................................. 3,730,000 -- 1,996,041
Repurchase agreements (cost equals market).............. -- 5,956,000 784,000
Cash.................................................... 3,137 300 5,153
Foreign currency........................................ -- -- --
Receivables for--
Dividends and accrued interest......................... 13,233 38,215 16,583
Fund shares sold....................................... 120,720 370,728 32,252
Foreign currency contracts............................. -- -- 370,739
Sales of investments................................... -- 1,548,048 267,432
Variation margin on futures contract................... -- -- --
Prepaid expenses........................................ 422 1,146 390
Deferred organizational expenses........................ 5,859 1,177 5,859
Unrealized appreciation on forward foreign currency
contracts.............................................. -- -- --
Due from Adviser........................................ -- -- 18,257
--------------------------------------------
29,804,941 108,534,474 20,786,501
--------------------------------------------
LIABILITIES:
Payables for--
Fund shares redeemed................................... 6,381 86,408 2,709
Management fees........................................ 19,802 64,448 19,791
Foreign currency contracts............................. -- -- 372,893
Purchases of investments............................... 181,402 4,735,724 331,558
Variation margin on futures contract................... -- -- --
Unrealized depreciation on forward foreign currency
contracts.............................................. -- -- --
Other accrued expenses.................................. 32,498 44,430 80,456
--------------------------------------------
240,083 4,931,010 807,407
--------------------------------------------
NET ASSETS.............................................. $29,564,858 $103,603,464 $19,979,093
============================================
Shares of beneficial interest outstanding (unlimited
shares authorized)..................................... 2,565,065 8,810,027 2,488,005
Net asset value per share............................... $ 11.53 $ 11.76 $ 8.03
============================================
COMPOSITION OF NET ASSETS:
Capital paid in......................................... $27,980,934 $ 92,323,561 $24,387,900
Accumulated undistributed net investment income gain
(loss)................................................. 239,201 (94,281) 105,714
Accumulated undistributed net realized gain (loss) on
investments, future contracts and options contracts.... 22,378 (3,535,686) (946,798)
Unrealized appreciation (depreciation) on investments... 1,322,345 14,909,870 (3,567,693)
Unrealized foreign exchange gain (loss) on other assets
and liabilities........................................ -- -- (30)
Unrealized appreciation (depreciation) on futures
contracts and written options contracts and currency
swap agreements........................................ -- -- --
$29,564,858 $103,603,464 $19,979,093
============================================
---------------
* Cost
Investment securities.................................. $24,609,225 $ 85,708,990 $20,857,487
============================================
Short-term securities.................................. $ 3,730,000 $ -- $ 1,996,041
============================================
</TABLE>
See Notes to Financial Statements
---------------------
105
<PAGE> 106
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
BALANCED/
PHOENIX
CASH GLOBAL CORPORATE HIGH-YIELD WORLDWIDE SUNAMERICA INVESTMENT
MANAGEMENT BOND BOND BOND HIGH INCOME BALANCED COUNSEL
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCOME:
Interest..................... $7,617,078 $4,309,054 $3,644,019 $15,031,427 $ 7,808,222 $ 508,106 $ 2,375,878
Dividends.................... -- -- 55,418 84,459 139,982 212,724 453,642
--------------------------------------------------------------------------------------------
Total income*............ 7,617,078 4,309,054 3,699,437 15,115,886 7,948,204 720,830 2,829,520
--------------------------------------------------------------------------------------------
EXPENSES:
Management fees.............. 718,297 550,533 325,988 1,000,566 915,682 188,724 558,675
Custodian fees............... 62,095 79,040 53,830 63,910 33,230 36,045 66,585
Reports to investors......... 22,755 22,675 13,035 35,555 23,980 6,920 19,715
Auditing fees................ 21,825 30,285 25,845 24,815 31,065 21,430 20,370
Amortization of
organizational expenses.... 7,172 3,953 3,953 3,822 -- -- --
Legal fees................... 2,026 1,003 569 1,632 1,279 827 1,026
Trustees' fees............... 1,350 586 356 928 964 331 740
Interest expense............. -- -- -- 963 -- -- --
Other expenses............... 5,670 2,590 1,654 3,881 2,025 1,215 2,476
--------------------------------------------------------------------------------------------
Total expenses............. 841,190 690,665 425,230 1,136,072 1,008,225 255,492 669,587
--------------------------------------------------------------------------------------------
Net investment income.......... 6,775,888 3,618,389 3,274,207 13,979,814 6,939,979 465,338 2,159,933
--------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCIES:
Net realized gain on
investments................ 925 2,772,480 505,509 9,993,528 8,172,292 1,624,801 9,676,697
Net realized gain (loss) on
futures contracts and
options contracts.......... -- (11,209) -- -- -- -- 24,811
Net realized foreign exchange
gain (loss) on other assets
and liabilities............ -- 758,012 -- -- (133,058) -- --
Change in unrealized
appreciation/ depreciation
on investments............. 2,661 (1,617,087) 718,565 (3,228,125) (5,021,473) 2,742,326 (1,288,697)
Change in unrealized foreign
exchange gain (loss) on
other assets and
liabilities................ -- 956,961 -- -- 4,477 -- --
--------------------------------------------------------------------------------------------
Net realized and unrealized
gain on investments and
foreign currencies........... 3,586 2,859,157 1,224,074 6,765,403 3,022,238 4,367,127 8,412,811
--------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.... $6,779,474 $6,477,546 $4,498,281 $20,745,217 $ 9,962,217 $4,832,465 $10,572,744
============================================================================================
---------------
* Net of foreign withholding
taxes on interest and
dividends of................. $ -- $ 31,949 $ 4,216 $ 5,542 $ 1,997 $ 1,879 $ 1,276
============================================================================================
</TABLE>
See Notes to Financial Statements
- ---------------------
106
<PAGE> 107
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF OPERATIONS (continued)
FOR THE YEAR ENDED NOVEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
GROWTH/
PHOENIX
ASSET GROWTH- FEDERATED VENTURE PUTNAM INVESTMENT
ALLOCATION UTILITY INCOME VALUE VALUE GROWTH COUNSEL
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCOME:
Interest.................. $10,731,204 $ 46,740 $ 2,045,423 $ 82,192 $ 4,033,128 $ 435,543 $ 1,002,237
Dividends................. 4,181,705 517,013 5,129,759 570,525 10,198,724 1,612,893 1,994,394
------------------------------------------------------------------------------------------------
Total income*......... 14,912,909 563,753 7,175,182 652,717 14,231,852 2,048,436 2,996,631
------------------------------------------------------------------------------------------------
EXPENSES:
Management fees........... 2,556,963 100,647 2,784,063 254,016 5,952,702 1,565,910 1,299,894
Custodian fees............ 169,075 38,915 124,620 38,930 196,340 72,505 83,605
Reports to investors...... 71,425 4,171 82,450 8,880 131,790 44,240 45,415
Auditing fees............. 19,265 20,820 20,180 21,500 30,240 19,305 18,545
Amortization of
organizational
expenses................ 3,953 -- 3,821 -- -- 3,822 3,821
Legal fees................ 4,222 620 4,278 725 8,410 2,637 1,761
Trustees' fees............ 3,925 164 4,460 397 7,623 1,578 1,605
Other expenses............ 9,701 1,106 9,484 1,251 14,155 5,322 6,063
------------------------------------------------------------------------------------------------
Total expenses before
reimbursement......... 2,838,529 166,443 3,033,356 325,699 6,341,260 1,715,319 1,460,709
Expenses reimbursed by
the investment
adviser............... -- (25,537) -- -- -- --
------------------------------------------------------------------------------------------------
Net investment income....... 12,074,380 422,847 4,141,826 327,018 7,890,592 333,117 1,535,922
------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCIES:
Net realized gain on
investments............. 52,482,629 861,442 26,372,396 1,792,042 41,598,668 43,697,799 36,951,244
Net realized gain on
futures contracts and
options contracts....... 1,244,062 -- 6,303,783 -- -- -- 194,755
Net realized foreign
exchange gain (loss) on
other assets and
liabilities............. (21,372) (3,129) 65 (1) 1,065 -- 22
Change in unrealized
appreciation/
depreciation on
investments............. 14,589,044 1,765,756 80,954,336 5,148,585 150,492,499 278,511 (2,566,236)
Change in unrealized
foreign exchange gain
(loss) on other assets
and liabilities......... 627 (148) -- -- 113 -- --
Change in unrealized
appreciation/
depreciation on futures
contracts, written
option contracts and
currency swap
agreements.............. (1,014,066) -- (773,581) -- -- -- --
------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments
and foreign currencies.... 67,280,924 2,623,921 112,856,999 6,940,626 192,092,345 43,976,310 34,579,785
------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS................ $79,355,304 $3,046,768 $116,998,825 $7,267,644 $199,982,937 $44,309,427 $36,115,707
================================================================================================
---------------
* Net of foreign withholding
taxes on interest and
dividends of.............. $ 5,888 $ 5,251 $ 22,784 $ 4,090 $ 76,913 $ 6,691 $ 50,798
================================================================================================
+ Commenced operations June
2, 1997
</TABLE>
See Notes to Financial Statements
---------------------
107
<PAGE> 108
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF OPERATIONS (continued)
FOR THE YEAR ENDED NOVEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
ALLIANCE GLOBAL GROWTH & DIVERSIFIED REAL AGGRESSIVE EMERGING
GROWTH EQUITIES INCOME+ EQUITIES ESTATE+ GROWTH MARKETS+
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCOME:
Interest.................. $ 268,071 $ 659,468 $ 100,461 $ 903,536 $ 59,009 $ 219,165 $ 74,404
Dividends................. 5,137,345 4,033,068 176,163 3,711,005 272,067 296,137 182,454
------------------------------------------------------------------------------------------------
Total income*......... 5,405,416 4,692,536 276,624 4,614,541 331,076 515,302 256,858
------------------------------------------------------------------------------------------------
EXPENSES:
Management fees........... 3,145,937 2,337,577 125,310 2,127,386 58,800 509,688 99,436
Custodian fees............ 154,780 452,185 94,075 640,475 18,225 51,540 74,350
Reports to investors...... 97,675 74,135 2,345 59,015 1,720 20,275 1,885
Auditing fees............. 22,605 27,750 28,785 29,575 18,795 21,285 28,815
Amortization of
organizational
expenses................ 3,821 3,822 515 -- 515 -- 515
Legal fees................ 5,368 2,830 690 2,438 690 1,110 690
Trustees' fees............ 4,807 2,700 335 1,765 82 652 144
Other expenses............ 10,066 7,632 937 3,249 922 1,763 923
------------------------------------------------------------------------------------------------
Total expenses before
reimbursement......... 3,445,059 2,908,631 252,992 2,863,903 99,749 606,313 206,758
Expenses reimbursed by
the investment
adviser............... -- -- (52,507) -- (7,874) -- (55,614)
------------------------------------------------------------------------------------------------
Net investment income....... 1,960,357 1,783,905 76,139 1,750,638 239,201 (91,011) 105,714
------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCIES:
Net realized gain (loss)
on investments#......... 81,524,855 26,101,178 219,703 (6,297,980) 22,378 (2,829,784) (913,203)
Net realized gain on
futures contracts and
options contracts....... 1,379,640 -- -- -- -- -- --
Net realized foreign
exchange gain (loss) on
other assets and
liabilities............. -- 69,950 111,488 6,707,753 -- -- (33,595)
Change in unrealized
appreciation/
depreciation on
investments............. 34,851,529 7,084,155 (263,491) 3,910,822 1,322,345 11,818,657 (3,567,693)
Change in unrealized
foreign exchange gain
(loss) on other assets
and liabilities......... -- 1,082,247 (122,878) 211,844 -- -- (30)
Change in unrealized
appreciation/
depreciation on futures
contracts, written
option contracts and
currency swap
agreements.............. (405,000) -- -- -- -- -- --
------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments and
foreign currencies...... 117,351,024 34,337,530 (55,178) 4,532,439 1,344,723 8,988,873 (4,514,521)
------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS................ $119,311,381 $36,121,435 $ 20,961 $ 6,283,077 $1,583,924 $ 8,897,862 $(4,408,807)
================================================================================================
---------------
* Net of foreign
withholding taxes on
interest and dividends
of....................... $ 24,621 $ 419,620 $ 15,908 $ 546,208 $ 261 $ 780 $ 6,795
================================================================================================
# Net of foreign capital
gains withholding taxes... $ -- $ -- $ -- $ 33,058 $ -- $ -- $ 1,462
================================================================================================
+ Commenced operations June
2, 1997
</TABLE>
See Notes to Financial Statements
- ---------------------
108
<PAGE> 109
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED NOVEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
CASH CORPORATE HIGH-YIELD
MANAGEMENT GLOBAL BOND BOND BOND
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.................................. $ 6,775,888 $ 3,618,389 $ 3,274,207 $ 13,979,814
Net realized gain on investments....................... 925 2,772,480 505,509 9,993,528
Net realized gain (loss) on futures contracts and
options contracts..................................... -- (11,209) -- --
Net realized foreign exchange gain (loss) on other
assets and liabilities................................ -- 758,012 -- --
Change in unrealized appreciation/depreciation on
investments........................................... 2,661 (1,617,087) 718,565 (3,228,125)
Change in unrealized foreign exchange gain/loss on
other assets and liabilities.......................... -- 956,961 -- --
----------------------------------------------------------------
Net increase in net assets resulting from operations... 6,779,474 6,477,546 4,498,281 20,745,217
----------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.................. (6,330,000) (4,705,000) (2,010,000) (8,890,000)
Distribution from net realized gain on investments.... -- (275,000) -- --
----------------------------------------------------------------
Total dividends and distributions to shareholders...... (6,330,000) (4,980,000) (2,010,000) (8,890,000)
----------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 811,621,512 33,606,421 33,721,704 154,271,836
Proceeds from shares issued for reinvestment of
dividends and distributions........................... 6,330,000 4,980,000 2,010,000 8,890,000
Cost of shares repurchased............................. (753,528,328) (19,262,861) (13,155,774) (92,607,140)
----------------------------------------------------------------
Net increase in net assets resulting from capital share
transactions.......................................... 64,423,184 19,323,560 22,575,930 70,554,696
----------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS........................... 64,872,658 20,821,106 25,064,211 82,409,913
NET ASSETS:
Beginning of period.................................... 91,246,796 68,221,417 37,207,407 113,229,093
----------------------------------------------------------------
End of period.......................................... $ 156,119,454 $ 89,042,523 $ 62,271,618 $195,639,006
================================================================
---------------
Accumulated undistributed net investment income........ $ 6,768,071 $ 3,290,478 $ 3,269,106 $ 13,972,776
================================================================
Shares issued and repurchased:
Sold................................................... 76,477,014 3,008,825 3,044,110 13,781,218
Issued in reinvestment of dividends and
distributions......................................... 611,004 466,729 190,883 837,889
Repurchased............................................ (71,025,735) (1,726,496) (1,194,160) (8,319,515)
----------------------------------------------------------------
Net increase........................................... 6,062,283 1,749,058 2,040,833 6,299,592
================================================================
<CAPTION>
BALANCED/
PHOENIX
WORLDWIDE SUNAMERICA INVESTMENT
HIGH INCOME BALANCED COUNSEL
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income.................................. $ 6,927,415 $ 465,338 $ 2,159,933
Net realized gain on investments....................... 8,172,292 1,624,801 9,676,697
Net realized gain (loss) on futures contracts and
options contracts..................................... -- -- 24,811
Net realized foreign exchange gain (loss) on other
assets and liabilities................................ (120,494) -- --
Change in unrealized appreciation/depreciation on
investments........................................... (5,021,473) 2,742,326 (1,288,697)
Change in unrealized foreign exchange gain/loss on
other assets and liabilities.......................... 4,477 -- --
---------------------------------------------
Net increase in net assets resulting from operations... 9,962,217 4,832,465 10,572,744
---------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.................. (3,530,000) (60,000) (1,265,000)
Distribution from net realized gain on investments.... (3,570,000) (40,000) (2,245,000)
---------------------------------------------
Total dividends and distributions to shareholders...... (7,100,000) (100,000) (3,510,000)
---------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 122,351,745 35,534,375 34,361,684
Proceeds from shares issued for reinvestment of
dividends and distributions........................... 7,100,000 100,000 3,510,000
Cost of shares repurchased............................. (56,294,138) (5,969,478) (19,233,950)
---------------------------------------------
Net increase in net assets resulting from capital share
transactions.......................................... 73,157,607 29,664,897 18,637,734
---------------------------------------------
TOTAL INCREASE IN NET ASSETS........................... 76,019,824 34,397,362 25,700,478
NET ASSETS:
Beginning of period.................................... 49,204,497 10,223,794 70,020,558
---------------------------------------------
End of period.......................................... $125,224,321 $44,621,156 $ 95,721,036
=============================================
---------------
Accumulated undistributed net investment income........ $ 6,495,311 $ 461,406 $ 2,153,212
=============================================
Shares issued and repurchased:
Sold................................................... 9,588,842 2,875,391 2,475,607
Issued in reinvestment of dividends and
distributions......................................... 606,319 8,651 269,378
Repurchased............................................ (4,394,496) (485,362) (1,391,401)
---------------------------------------------
Net increase........................................... 5,800,665 2,398,680 1,353,584
=============================================
</TABLE>
See Notes to Financial Statements
---------------------
109
<PAGE> 110
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (continued)
FOR THE YEAR ENDED NOVEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
ASSET FEDERATED GROWTH- FEDERATED
ALLOCATION UTILITY INCOME VALUE
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.................................. $ 12,074,380 $ 422,847 $ 4,141,826 $ 327,018
Net realized gain on investments....................... 52,482,629 861,442 26,372,396 1,792,042
Net realized gain on futures contracts and options
contracts............................................. 1,244,062 -- 6,303,783 --
Net realized foreign exchange gain (loss) on other
assets and liabilities................................ (21,372) (3,129) 65 (1)
Change in unrealized appreciation/depreciation on
investments........................................... 14,589,044 1,765,756 80,954,336 5,148,585
Change in unrealized foreign exchange gain/loss on
other assets and liabilities.......................... 627 (148) -- --
Change in unrealized appreciation/depreciation on
futures contracts, written options contracts and
currency swap agreements.............................. (1,014,066) -- (773,581) --
---------------------------------------------------------------
Net increase in net assets resulting from operations... 79,355,304 3,046,768 116,998,825 7,267,644
---------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.................. (9,550,000) (85,000) (2,770,000) (45,000)
Distribution from net realized gain on investments.... (21,740,000) (21,000) (15,835,000) --
---------------------------------------------------------------
Total dividends and distributions to shareholders...... (31,290,000) (106,000) (18,605,000) (45,000)
---------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 198,007,930 19,909,225 281,329,957 53,713,595
Proceeds from shares issued for reinvestment of
dividends and distributions........................... 31,290,000 106,000 18,605,000 45,000
Cost of shares repurchased............................. (67,166,417) (4,888,513) (101,729,611) (14,416,823)
---------------------------------------------------------------
Net increase in net assets resulting from capital share
transactions.......................................... 162,131,513 15,126,712 198,205,346 39,341,772
---------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS........................... 210,196,817 18,067,480 296,599,171 46,564,416
NET ASSETS:
Beginning of period.................................... 316,388,426 6,298,647 325,463,325 12,459,528
---------------------------------------------------------------
End of period.......................................... $526,585,243 $24,366,127 $ 622,062,496 $ 59,023,944
===============================================================
---------------
Accumulated undistributed net investment income........ $ 11,185,024 $ 419,322 $ 4,138,569 $ 322,155
===============================================================
Shares issued and repurchased:
Sold................................................... 12,863,082 1,709,480 14,863,689 4,266,674
Issued in reinvestment of dividends and
distributions......................................... (4,387,167) 9,628 1,105,466 3,896
Repurchased............................................ 2,220,724 (417,938) (5,441,625) (1,147,636)
---------------------------------------------------------------
Net increase........................................... 5,984,292 1,301,170 10,527,530 3,122,934
===============================================================
<CAPTION>
GROWTH/
PHOENIX
VENTURE PUTNAM INVESTMENT
VALUE GROWTH COUNSEL
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income.................................. $ 7,890,592 $ 333,117 $ 1,535,922
Net realized gain on investments....................... 41,598,668 43,697,799 36,951,244
Net realized gain on futures contracts and options
contracts............................................. -- -- 194,755
Net realized foreign exchange gain (loss) on other
assets and liabilities................................ 1,065 -- 22
Change in unrealized appreciation/depreciation on
investments........................................... 150,492,499 278,511 (2,566,236)
Change in unrealized foreign exchange gain/loss on
other assets and liabilities.......................... 113 -- --
Change in unrealized appreciation/depreciation on
futures contracts, written options contracts and
currency swap agreements.............................. -- -- --
------------------------------------------------
Net increase in net assets resulting from operations... 199,982,937 44,309,427 36,115,707
------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.................. (3,390,000) -- (1,325,000)
Distribution from net realized gain on investments.... (9,745,000) (5,465,000) (16,255,000)
------------------------------------------------
Total dividends and distributions to shareholders...... (13,135,000) (5,465,000) (17,580,000)
------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 607,026,485 84,068,227 36,491,255
Proceeds from shares issued for reinvestment of
dividends and distributions........................... 13,135,000 5,465,000 17,580,000
Cost of shares repurchased............................. (183,369,506) (53,724,485) (40,478,722)
------------------------------------------------
Net increase in net assets resulting from capital share
transactions.......................................... 436,791,979 35,808,742 13,592,533
TOTAL INCREASE IN NET ASSETS........................... 623,639,916 74,653,169 32,128,240
NET ASSETS:
Beginning of period.................................... 516,413,371 160,073,045 186,367,578
------------------------------------------------
End of period.......................................... $1,140,053,287 $234,726,214 $218,495,818
================================================
---------------
Accumulated undistributed net investment income........ $ 7,882,608 $ 333,117 $ 1,533,717
================================================
Shares issued and repurchased:
Sold................................................... 31,474,224 4,939,017 2,470,784
Issued in reinvestment of dividends and
distributions......................................... 755,319 357,190 1,337,900
Repurchased............................................ (9,684,502) (3,227,119) (2,775,949)
------------------------------------------------
Net increase........................................... 22,545,041 2,069,088 1,032,735
================================================
</TABLE>
See Notes to Financial Statements
- ---------------------
110
<PAGE> 111
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (continued)
FOR THE YEAR ENDED NOVEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
ALLIANCE GLOBAL GROWTH & DIVERSIFIED
GROWTH EQUITIES INCOME+ EQUITIES
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)............................. $ 1,960,357 $ 1,783,905 $ 76,139 $ 1,750,638
Net realized gain (loss) on investments.................. 81,524,855 26,101,178 219,703 (6,297,980)
Net realized gain on futures contracts and options
contracts............................................... 1,379,640 -- -- --
Net realized foreign exchange gain (loss) on other assets
and liabilities......................................... -- 69,950 111,488 6,707,753
Change in unrealized appreciation/depreciation on
investments............................................. 34,851,529 7,084,155 (263,491) 3,910,822
Change in unrealized foreign exchange gain/loss on other
assets and liabilities.................................. -- 1,082,247 (122,878) 211,844
Change in unrealized appreciation/depreciation on futures
contracts, options contracts and currency swap
agreements.............................................. (405,000) -- -- --
---------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations.............................................. 119,311,381 36,121,435 20,961 6,283,077
---------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment income.................... (1,200,000) (2,305,000) -- (5,175,000)
Distribution from net realized gain on investments...... (23,710,000) (12,550,000) -- (1,715,000)
---------------------------------------------------------
Total dividends and distributions to shareholders........ (24,910,000) (14,855,000) -- (6,890,000)
---------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold................................ 393,697,806 147,050,332 47,363,333 148,423,226
Proceeds from shares issued for reinvestment of dividends
and distributions....................................... 24,910,000 14,855,000 -- 6,890,000
Cost of shares repurchased............................... (189,842,593) (88,014,579) (4,538,803) (62,787,984)
---------------------------------------------------------
Net increase in net assets resulting from capital share
transactions............................................ 228,765,213 73,890,753 42,824,530 92,525,242
---------------------------------------------------------
TOTAL INCREASE IN NET ASSETS............................. 323,166,594 95,157,188 42,845,491 91,918,319
NET ASSETS:
Beginning of period...................................... 381,366,673 246,482,006 -- 157,008,393
---------------------------------------------------------
End of period............................................ $ 704,533,267 $341,639,194 $42,845,491 $248,926,712
=========================================================
---------------
Accumulated undistributed net investment income (loss)... $ 1,954,191 $ 1,687,906 $ 76,139 $ 653,091
=========================================================
Shares issued and repurchased:
Sold..................................................... 18,866,011 9,425,673 4,546,734 12,963,775
Issued in reinvestment of dividends and distributions.... 1,397,084 1,045,391 -- 646,315
Repurchased.............................................. (9,403,821) (5,605,026) (431,073) (5,452,782)
---------------------------------------------------------
Net increase............................................. 10,859,274 4,866,038 4,115,661 8,157,308
=========================================================
---------------
+ Commenced operations June 2, 1997
<CAPTION>
REAL AGGRESSIVE EMERGING
ESTATE+ GROWTH MARKETS+
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss)............................. $ 239,201 $ (91,011) $ 105,714
Net realized gain (loss) on investments.................. 22,378 (2,829,784) (913,203)
Net realized gain on futures contracts and options
contracts............................................... -- -- --
Net realized foreign exchange gain (loss) on other assets
and liabilities......................................... -- -- (33,595)
Change in unrealized appreciation/depreciation on
investments............................................. 1,322,345 11,818,657 (3,567,693)
Change in unrealized foreign exchange gain/loss on other
assets and liabilities.................................. -- -- (30)
Change in unrealized appreciation/depreciation on futures
contracts, options contracts and currency swap
agreements.............................................. -- -- --
----------------------------------------
Net increase (decrease) in net assets resulting from
operations.............................................. 1,583,924 8,897,862 (4,408,807)
----------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment income.................... -- (43,000) --
Distribution from net realized gain on investments...... -- -- --
----------------------------------------
Total dividends and distributions to shareholders........ -- (43,000) --
----------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold................................ 32,073,915 93,642,244 26,523,263
Proceeds from shares issued for reinvestment of dividends
and distributions....................................... -- 43,000 --
Cost of shares repurchased............................... (4,092,981) (34,060,944) (2,135,363)
----------------------------------------
Net increase in net assets resulting from capital share
transactions............................................ 27,980,934 59,624,300 24,387,900
----------------------------------------
TOTAL INCREASE IN NET ASSETS............................. 29,564,858 68,479,162 19,979,093
NET ASSETS:
Beginning of period...................................... -- 35,124,302 --
----------------------------------------
End of period............................................ $29,564,858 $103,603,464 $19,979,093
========================================
---------------
Accumulated undistributed net investment income (loss)... $ 239,201 $ (94,281) $ 105,715
========================================
Shares issued and repurchased:
Sold..................................................... 2,929,568 8,405,394 2,715,811
Issued in reinvestment of dividends and distributions.... -- 4,470 --
Repurchased.............................................. (364,503) (2,989,260) (227,806)
----------------------------------------
Net increase............................................. 2,565,065 5,420,604 2,488,005
========================================
---------------
+ Commenced operations June 2, 1997
</TABLE>
See Notes to Financial Statements
---------------------
111
<PAGE> 112
- ---------------------
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>
WORLDWIDE
HIGH SUNAMERICA
INCOME BALANCED#
-------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss)........................... $ 3,853,929 $ 56,068
Net realized gain (loss) on investments................ 2,824,669 28,763
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
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
----------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.................. (1,700,000) --
Distribution from net realized gain on investments.... (100,000) --
----------------------------
Total dividends and distributions to shareholders...... (1,800,000) --
----------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 48,071,872 11,344,623
Proceeds from shares issued for reinvestment of
dividends and distributions........................... 1,800,000 --
Cost of shares repurchased............................. (29,323,432) (2,028,468)
----------------------------
Net increase (decrease) in net assets resulting from
capital share transactions............................ 20,548,440 9,316,155
----------------------------
TOTAL INCREASE IN NET ASSETS........................... 27,689,417 10,223,794
NET ASSETS:
Beginning of period.................................... 21,515,080 --
----------------------------
End of period.......................................... $ 49,204,497 $10,223,794
============================
---------------
Accumulated undistributed net investment income........ $ 3,097,896 $ 56,068
============================
Shares issued and repurchased:
Sold................................................... 4,060,525 1,113,491
Issued in reinvestment of dividends and
distributions......................................... 166,821 --
Repurchased............................................ (2,425,678) (194,594)
----------------------------
Net increase (decrease)................................ 1,801,668 918,897
============================
</TABLE>
# Commenced operations June 3, 1996
See Notes to Financial Statements
- ---------------------
112
<PAGE> 113
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (continued)
FOR THE YEAR ENDED NOVEMBER 30, 1996
<TABLE>
<CAPTION>
BALANCED/
PHOENIX
INVESTMENT ASSET GROWTH-
COUNSEL ALLOCATION UTILITY# INCOME
-------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.................................. $ 1,397,620 $ 9,136,961 $ 81,705 $ 2,773,321
Net realized gain (loss) on investments................ 2,107,376 19,730,122 12,853 13,516,427
Net realized gain 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........................................... 3,902,857 18,681,439 287,691 42,693,932
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... 7,407,853 49,106,860 382,158 61,372,255
-------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.................. (540,000) (5,505,000) -- (1,680,000)
Distribution from net realized gain on investments.... (890,000) (6,805,000) -- (5,975,000)
-------------------------------------------------------------
Total dividends and distributions to shareholders...... (1,430,000) (12,310,000) -- (7,655,000)
-------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 44,916,086 108,836,939 6,090,461 145,602,473
Proceeds from shares issued for reinvestment of
dividends and distributions........................... 1,430,000 12,310,000 -- 7,655,000
Cost of shares repurchased............................. (14,731,916) (41,391,763) (173,972) (52,792,476)
-------------------------------------------------------------
Net increase in net assets resulting from capital share
transactions.......................................... 31,614,170 79,755,176 5,916,489 100,464,997
-------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS........................... 37,592,023 116,552,036 6,298,647 154,182,252
NET ASSETS:
Beginning of period.................................... 32,428,535 199,836,390 -- 171,281,073
-------------------------------------------------------------
End of period.......................................... $ 70,020,558 $316,388,426 $6,298,647 $325,463,325
=============================================================
---------------
Accumulated undistributed net investment income........ $ 1,258,279 $ 8,660,644 $ 81,475 $ 2,766,743
=============================================================
Shares issued and repurchased:
Sold................................................... 3,604,718 8,296,399 602,909 9,953,598
Issued in reinvestment of dividends and
distributions......................................... 117,502 970,055 -- 541,755
Repurchased............................................ (1,184,892) (3,164,619) (17,033) (3,630,349)
-------------------------------------------------------------
Net increase........................................... 2,537,328 6,101,835 585,876 6,865,004
=============================================================
<CAPTION>
FEDERATED VENTURE
VALUE# VALUE
----------------------------
<S> <C> <C>
OPERATIONS:
Net investment income.................................. $ 40,137 $ 3,640,938
Net realized gain (loss) on investments................ (22,475) 9,692,354
Net realized gain on futures and options contracts..... -- --
Net realized foreign exchange gain (loss) on other
assets and liabilities................................ -- 2,021
Change in unrealized appreciation/depreciation on
investments........................................... 1,196,109 75,918,377
Change in unrealized foreign exchange gain/loss on
other assets and liabilities.......................... -- 341
Change in unrealized appreciation/depreciation on
futures contracts..................................... -- --
----------------------------
Net increase in net assets resulting from operations... 1,213,771 89,254,031
----------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.................. -- (1,150,000)
Distribution from net realized gain on investments.... -- (1,631,000)
----------------------------
Total dividends and distributions to shareholders...... -- (2,781,000)
----------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 11,583,467 358,199,882
Proceeds from shares issued for reinvestment of
dividends and distributions........................... -- 2,781,000
Cost of shares repurchased............................. (337,710) (85,948,539)
----------------------------
Net increase in net assets resulting from capital share
transactions.......................................... 11,245,757 275,032,343
----------------------------
TOTAL INCREASE IN NET ASSETS........................... 12,459,528 361,505,374
NET ASSETS:
Beginning of period.................................... -- 154,907,997
----------------------------
End of period.......................................... $12,459,528 $516,413,371
============================
---------------
Accumulated undistributed net investment income........ $ 40,137 $ 3,382,016
============================
Shares issued and repurchased:
Sold................................................... 1,158,140 24,918,067
Issued in reinvestment of dividends and
distributions......................................... -- 208,003
Repurchased............................................ (33,890) (6,065,330)
----------------------------
Net increase........................................... 1,124,250 19,060,740
============================
</TABLE>
# Commenced operations June 3, 1996
See Notes to Financial Statements
---------------------
113
<PAGE> 114
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (continued)
FOR THE YEAR ENDED NOVEMBER 30, 1996
<TABLE>
<CAPTION>
GROWTH/
PHOENIX
PUTNAM INVESTMENT ALLIANCE GLOBAL
GROWTH COUNSEL GROWTH EQUITIES
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)........................... $ (23,455) $ 1,327,266 $ 1,199,438 $ 2,128,761
Net realized gain (loss) on investments................ 8,612,831 16,211,794 21,793,902 12,300,321
Net realized gain on futures and options contracts..... -- -- 433,180 --
Net realized foreign exchange gain (loss) on other
assets and liabilities................................ -- (510) -- 496,594
Change in unrealized appreciation/depreciation on
investments........................................... 17,288,052 10,855,474 46,485,737 19,341,166
Change in unrealized foreign exchange gain/loss on
other assets and liabilities.......................... -- 21 -- (27,011)
Change in unrealized appreciation/depreciation on
futures contracts..................................... -- -- 300,750 --
----------------------------------------------------------------
Net increase in net assets resulting from operations... 25,877,428 28,394,045 70,213,007 34,239,831
----------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.................. -- (1,265,000) (483,000) (1,885,000)
Distribution from net realized gain on investments.... -- (10,645,000) (13,185,000) (4,480,000)
----------------------------------------------------------------
Total dividends and distributions to shareholders...... -- (11,910,000) (13,668,000) (6,365,000)
----------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 55,935,417 46,376,696 247,316,545 99,072,900
Proceeds from shares issued for reinvestment of
dividends and distributions........................... -- 11,910,000 13,668,000 6,365,000
Cost of shares repurchased............................. (37,015,839) (38,313,646) (104,032,606) (52,582,422)
----------------------------------------------------------------
Net increase in net assets resulting from capital share
transactions.......................................... 18,919,578 19,973,050 156,951,939 52,855,478
----------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS........................... 44,797,006 36,457,095 213,496,946 80,730,309
NET ASSETS:
Beginning of period.................................... 115,276,039 149,910,483 167,869,727 165,751,697
----------------------------------------------------------------
End of period.......................................... $160,073,045 $186,367,578 $ 381,366,673 $246,482,006
================================================================
---------------
Accumulated undistributed net investment income........ $ -- $ 1,322,795 $ 1,193,834 $ 2,209,001
================================================================
Shares issued and repurchased:
Sold................................................... 4,113,284 3,516,917 15,394,232 7,165,202
Issued in reinvestment of dividends and
distributions......................................... -- 949,004 893,333 472,181
Repurchased............................................ (2,724,390) (2,922,221) (6,661,296) (3,815,033)
----------------------------------------------------------------
Net increase........................................... 1,388,894 1,543,700 9,626,269 3,822,350
================================================================
<CAPTION>
INTERNATIONAL
DIVERSIFIED AGGRESSIVE
EQUITIES GROWTH#
-------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss)........................... $ 481,375 $ 39,730
Net realized gain (loss) on investments................ 1,688,079 (705,902)
Net realized gain on futures and options contracts..... -- --
Net realized foreign exchange gain (loss) on other
assets and liabilities................................ 5,292,994 --
Change in unrealized appreciation/depreciation on
investments........................................... 5,555,457 3,091,213
Change in unrealized foreign exchange gain/loss on
other assets and liabilities.......................... (813,250) --
Change in unrealized appreciation/depreciation on
futures contracts..................................... -- --
----------------------------
Net increase in net assets resulting from operations... 12,204,655 2,425,041
----------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.................. (1,350,000) --
Distribution from net realized gain on investments.... -- --
----------------------------
Total dividends and distributions to shareholders...... (1,350,000) --
----------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 133,585,152 39,091,029
Proceeds from shares issued for reinvestment of
dividends and distributions........................... 1,350,000 --
Cost of shares repurchased............................. (37,742,073) (6,391,768)
----------------------------
Net increase in net assets resulting from capital share
transactions.......................................... 97,193,079 32,699,261
----------------------------
TOTAL INCREASE IN NET ASSETS........................... 108,047,734 35,124,302
NET ASSETS:
Beginning of period.................................... 48,960,659 --
----------------------------
End of period.......................................... $157,008,393 $35,124,302
============================
---------------
Accumulated undistributed net investment income........ $ 4,077,453 $ 39,730
============================
Shares issued and repurchased:
Sold................................................... 12,354,619 4,051,127
Issued in reinvestment of dividends and
distributions......................................... 130,941 --
Repurchased............................................ (3,499,995) (661,704)
----------------------------
Net increase........................................... 8,985,565 3,389,423
============================
</TABLE>
# Commenced operations June 3, 1996
See Notes to Financial Statements
- ---------------------
114
<PAGE> 115
- ---------------------
SUNAMERICA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION: SunAmerica Series Trust
("the Trust"), organized as a Massachusetts business trust on September 11,
1992, is an open-end management investment company. It was established to
provide a funding medium for certain annuity contracts issued by Variable
Separate Account (the "Account"), a separate account of Anchor National Life
Insurance Company ("the Life Company"), organized under the laws of the state of
Arizona.
The Trust issues 21 separate series of shares ("the Portfolios"), each of
which represents a separate managed portfolio of securities with its own
investment objectives. The Trustees may establish additional series in the
future. All shares may be purchased or redeemed by the Account at net asset
value without any sales or redemption charge.
The investment objectives for each portfolio are as follows:
The Cash Management Portfolio seeks high current yield while preserving capital
by investing in a diversified selection of money market instruments.
The 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 Putnam Growth (formerly, the Provident Growth Portfolio), Growth/Phoenix
Investment Counsel and Alliance 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.
---------------------
115
<PAGE> 116
The International Growth and Income Portfolio seeks growth of capital and
current income through investment primarily in common stocks and securities
principally traded on markets outside the United States that offer potential for
capital growth and current income.
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 Real Estate Portfolio seeks total return through a combination of growth and
income by investment 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 instruments.
The Aggressive Growth Portfolio seeks long-term growth of capital through
investment primarily in equity securities of small capitalization growth
companies.
The Emerging Markets Portfolio seeks long-term capital appreciation by investing
in common stocks that have above-average growth prospects primarily in emerging
markets outside the United States.
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, 1997, and the results of
its operations, the changes in its net assets and its financial highlights for
the periods then ended. The following is a summary of significant accounting
policies consistently followed by the Trust in the preparation of its financial
statements.
SECURITY VALUATIONS: Stocks are stated at value based upon closing sales
prices reported on recognized securities exchanges or, for listed securities
having no sales reported and for unlisted securities, upon last-reported bid
prices. Nonconvertible bonds, debentures, other long-term debt securities, and
short-term securities with original or remaining maturities in excess of 60 days
are valued at prices obtained for the day of valuation from a bond pricing
service of a major dealer in bonds when such prices are available; however, in
circumstances where the investment adviser deems it appropriate to do so, an
over-the-counter or exchange quotation at the mean of representative bid or
asked prices may be used. Securities traded primarily on securities exchanges
outside the United States are valued at the last sale price on such exchanges on
the day of valuation, or if there is no sale on the day of valuation, at the
last reported bid price. If a security's price is available from more than one
foreign exchange, a portfolio uses the exchange that is the primary market for
the security. Futures contracts are valued at the last sale price established
each day by the board of trade or exchange on which they are traded. Short-term
securities with 60 days or less to maturity are amortized to maturity based on
their cost to the Trust if acquired within 60 days of maturity or, if already
held by the Trust on the 60th day, are amortized to maturity based on the value
determined on the 61st day. Securities for which quotations are not readily
available are valued at fair value as determined in good faith under the
direction of the Trust's Trustees.
REPURCHASE AGREEMENTS: The Trust's custodian takes possession of the
collateral pledged for investments in repurchase agreements. The underlying
collateral is valued daily on a mark-to-market basis to assure that the value,
including accrued interest, is at least equal to the repurchase price. In the
event of default of the obligation to repurchase, the Trust has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. If the seller defaults and the value of the collateral declines or
if bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by the Trust may be delayed or limited.
FOREIGN CURRENCY TRANSLATION: The books and records of the Trust are
maintained in U.S. dollars. Assets and liabilities denominated in foreign
currencies and commitments under forward foreign currency contracts are
translated into U.S. dollars at the mean of the quoted bid and asked prices of
such currencies against the U.S. dollar.
The Trust does not isolate that portion of the results of operations arising
as a result of changes in the foreign exchange rates from the changes in the
market prices of securities held at fiscal year-end. Similarly, the Trust does
not isolate the effect of changes in foreign exchange rates from the changes in
the market prices of portfolio securities sold during the year.
Realized foreign exchange gain and losses on other assets and liabilities and
change in unrealized foreign exchange gain and losses on other assets and
liabilities include realized foreign exchange gains and losses from currency
gains or losses between the trade and settlement dates of securities
transactions, the difference between the amounts of interest, dividends and
foreign withholding taxes recorded on the Trust's books and the U.S. dollar
equivalent amounts actually received or paid and changes in the unrealized
foreign exchange gains and losses relating to the other assets and liabilities
arising as a result of changes in the exchange rate.
FORWARD FOREIGN CURRENCY CONTRACTS: Certain portfolios may enter into forward
foreign currency contracts ("forward contracts") to attempt to protect
securities and related receivables and payables against changes in future
foreign exchange rates or to enhance return. A forward contract is an agreement
between two parties to buy or sell currency at a set price on a future date. The
market value of the contract will fluctuate with changes in currency exchange
rates. The contract is marked-to-
- ---------------------
116
<PAGE> 117
market daily using the forward rate and the change in market value is recorded
by the Portfolio as unrealized gain or loss. On the 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.
OPTIONS: An option is a contract conveying a right to buy or sell a financial
instrument at a specified price during a stipulated period. The premium paid by
a Portfolio for the purchase of a call or a put option is included in the
Portfolio's Statement of Assets and Liabilities as an investment and
subsequently marked to market to reflect the current market value of the option.
When a Portfolio writes a call or a put option, an amount equal to the premium
received by the Portfolio is included in the Portfolio's Statement of Assets and
Liabilities as a liability and is subsequently marked to market to reflect the
current market value of the option written. If an option which the Portfolio has
written either expires on its stipulated expiration date, or if the Portfolio
enters into a closing purchase transaction, the Portfolio realizes a gain (or
loss if the cost of a closing purchase transaction exceeds the premium received
when the option was written) without regard to any unrealized gain or loss on
the underlying security, and the liability related to such options is
extinguished. If a call option which the Portfolio has written is exercised, the
Portfolio realizes a capital gain or loss from the sale of the underlying
security and the proceeds from such sale are increased by the premium originally
received. If a put option which the Portfolio has written is exercised, the
amount of the premium originally received reduces the cost of the security which
the Portfolio purchased upon exercise of the option.
CURRENCY SWAPS: Currency swaps involve the exchange by a Portfolio with
another party of its respective rights to make or receive payments in specified
currencies. Currency swaps usually involve the delivery of the principal value
of one designated currency in exchange for the other designated currency.
Therefore, the entire principal value of a currency swap is subject to the risk
that the other party will default on its contractual delivery obligations.
Currency swaps involve elements of risk in excess of the amount reflected in the
Statement of Assets and Liabilities. Changes in the value of the swap are
reported as unrealized appreciation or depreciation in the Statement of Assets
and Liabilities. A realized gain or loss is recorded upon early termination of
such agreement.
SECURITIES TRANSACTIONS, INVESTMENT INCOME, EXPENSES, DIVIDENDS AND
DISTRIBUTIONS: As is customary in the mutual fund industry, securities
transactions are recorded on a trade date basis. Interest income is accrued
daily except when collection is not expected. Dividend income and distributions
to shareholders are recorded on the ex-dividend date except for certain
dividends from foreign securities, which are recorded as soon as the Trust is
informed after the ex-dividend date. The Trust amortizes premiums and accretes
discounts on fixed income securities, as well as those original issue discounts
for which amortization is required for federal income tax purposes; gains and
losses realized upon the sale of such securities are based on their identified
cost. Portfolios which earn foreign income and capital gains may be subject to
foreign withholding taxes at various rates.
Common expenses incurred by the Trust are allocated among the Portfolios based
upon relative net assets or other appropriate allocation methods. In all other
respects, expenses are charged to each Portfolio as incurred on a specific
identification basis.
The Portfolios record dividends and distributions to its shareholders on the
ex-dividend date. The amount of dividends and distributions from net investment
income and net realized capital gains are determined and presented in accordance
with federal income tax regulations, which may differ from generally accepted
accounting principles. These "book/tax" differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature, such amounts are reclassified within the capital accounts based on
their federal tax-basis treatment; temporary differences do not require
reclassification. Dividends and distributions which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains. To the extent
distributions exceed current and accumulated earnings and profits for federal
income tax purposes, they are reported as distributions of paid-in capital. Net
investment income/loss, net realized gain/loss, and net assets were not
affected.
---------------------
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<PAGE> 118
For the year ended November 30, 1997, 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......................................... $ $ $
Corporate Bond..........................................
Global Bond*............................................
Worldwide High Income*..................................
Balanced/Phoenix Investment Counsel.....................
Asset Allocation........................................
Utility.................................................
Growth-Income...........................................
Venture Value...........................................
Growth/Phoenix Investment Counsel.......................
Putnam Growth...........................................
Global Equities*........................................
International Diversified Equities*.....................
</TABLE>
* Reclassification is primarily due to differing book/tax treatments for
foreign currency transactions.
3. JOINT REPURCHASE AGREEMENT ACCOUNT: The Cash Management, High-Yield Bond,
SunAmerica Balanced and Aggressive Growth Portfolios, along with other
affiliated registered investment companies, transfer uninvested cash balances
into a single joint account, the daily aggregate balance of which is invested in
one or more repurchase agreements collateralized by U.S. Treasury or federal
agency obligations. As of November 30, 1997, the Cash Management, High-Yield
Bond, SunAmerica Balanced, and Aggressive Growth Portfolios had a 9.1%, 8.0%,
1.6% and 4.1%, undivided interest, respectively, which represented $13,341,000,
$11,659,000, $2,364,000 and $5,956,000, respectively, in principal amount in a
repurchase agreement in the joint account. As of such date, the repurchase
agreement in the joint account and the collateral therefore was as follows:
Paine Webber Securities, Inc. Repurchase Agreement, 5.625% dated 11/28/97, in
the principal amount of $146,239,000 repurchase price $146,307,550 due 12/1/97
collateralized by $50,000,000 U.S. Treasury Note 4.75% due 10/31/98, $1,230,000
U.S. Treasury Note 6.00% due 6/30/99, $45,440,000 U.S. Treasury Note 6.125% due
3/31/98, and $50,000,000 U.S. Treasury Note 7.125% due 2/29/00; approximate
aggregate value $149,228,325.
4. FEDERAL INCOME TAXES: The Trust intends to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and
distribute all of its taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal tax provision is
required.
The amounts of aggregate unrealized gain (loss) and the cost of investment
securities for book purposes, including short-term securities at November 30,
1997, were as follows:
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE UNREALIZED CAPITAL
UNREALIZED UNREALIZED GAIN/(LOSS) COST OF LOSS
GAIN (LOSS) NET INVESTMENTS CARRYOVER*+
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cash Management.................................... 7,172 10,928 (3,756) 155,310,944
Global Bond........................................ 1,390,632 967,034 423,598 82,754,965
Corporate Bond..................................... 2,067,215 189,531 1,877,684 59,778,545
High-Yield Bond.................................... 4,877,906 3,212,750 1,665,156 196,220,890
Worldwide High Income.............................. 2,518,941 4,639,086 (2,120,145) 129,974,866
SunAmerica Balanced................................ 4,155,701 590,567 3,565,134 40,968,321
Balanced/Phoenix Investment Counsel................ 5,756,221 1,178,789 4,577,432 95,853,485
Asset Allocation................................... 59,450,298 8,856,636 50,593,662 509,373,060
Utility............................................ 2,185,214 131,767 2,053,447 22,393,376
Growth-Income...................................... 154,097,849 6,071,412 148,026,437 478,491,719
Federated Value.................................... 7,555,493 1,210,799 6,344,694 52,951,678
Venture Value...................................... 253,161,358 11,549,359 241,611,999 896,545,919
Putnam Growth...................................... 47,028,613 1,414,609 45,614,004 189,155,574
Growth/Phoenix Investment Counsel.................. 28,389,026 3,626,289 24,762,737 192,857,996
Alliance Growth.................................... 114,933,806 13,244,460 101,678,346 605,590,402
Global Equities.................................... 53,435,845 15,961,693 37,474,152 301,786,616
International Growth and Income.................... 1,436,633 1,700,124 (263,491) 43,441,430
International Diversified Equities................. 24,252,338 13,968,835 10,283,503 239,514,359
Real Estate........................................ 1,567,942 245,597 1,322,345 28,339,225
Aggressive Growth.................................. 17,285,021 2,375,151 14,909,870 91,664,990
Emerging Markets................................... 519,396 4,087,089 (3,567,693) 23,637,528
</TABLE>
* Expire 2002-2004
** Post 10/31/97 Capital Loss Deferrals: Cash Management $ ; Aggressive
Growth $
+ Net capital loss carryovers reported as of November 30, 1997, which are
available to the extent provided in regulations to offset future capital
gains. To the extent that these carryovers are used to offset future capital
gains, it is probable that these gains so offset will not be distributed.
- ---------------------
118
<PAGE> 119
5. MANAGEMENT OF THE TRUST: SunAmerica Asset Management Corp. ("SAAMCo" or the
"Adviser"), an indirect wholly owned subsidiary of the Life Company, serves as
investment adviser for all the portfolios of the Trust. The Trust, on behalf of
each Portfolio, entered into an Investment Advisory and Management Agreement
(the "Agreement") with SAAMCo to handle the Trust's day-to-day affairs. It is
the responsibility of the Adviser and, for certain Portfolios pursuant to
Subadvisory Agreements described below, the subadvisers, to make investment
decisions for the Portfolios and to place the purchase and sale orders for the
Portfolio transactions. Such orders may be directed to any broker including, in
the manner and to the extent permitted by applicable law, affiliates of the
Adviser or a subadviser. The Agreement provides that SAAMCo shall administer the
Trust's business affairs; furnish offices, necessary facilities and equipment;
provide clerical, bookkeeping and administrative services; and permit any of its
officers or employees to serve, without compensation, as trustees or officers of
the Trust, if duly elected to such positions. There is no subadviser for the
Cash Management, High-Yield Bond, SunAmerica Balanced and Aggressive Growth
Portfolios, and SAAMCo, therefore performs all investment advisory services for
these Portfolios. The term "Assets", as used in the following table, means the
average daily net assets of the Portfolios.
The Trust pays SAAMCo a monthly fee calculated at the following annual
percentages of each Portfolio's assets:
<TABLE>
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ----------------------------------------------------------------
<S> <C> <C>
Cash Management $0--$100 million 0.55%
greater than $100 million 0.50%
greater than $300 million 0.45%
Corporate Bond $0--$ 50 million 0.70%
greater than $ 50 million 0.60%
greater than $150 million 0.55%
greater than $250 million 0.50%
Global Bond- $0--$ 50 million 0.75%
Asset Allocation greater than $ 50 million 0.65%
greater than $150 million 0.60%
greater than $250 million 0.55%
High-Yield Bond $0--$ 50 million 0.70%
greater than $ 50 million 0.65%
greater than $150 million 0.60%
greater than $250 million 0.55%
Worldwide High greater than $ 0 1.00%
Income-International
Diversified Equities
SunAmerica Balanced- $0--$ 50 million 0.70%
Balanced/Phoenix greater than $ 50 million 0.65%
Investment Counsel- greater than $150 million 0.60%
Growth-Income- greater than $300 million 0.55%
Alliance Growth- greater than $500 million 0.50%
Growth/Phoenix
Investment Counsel
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ----------------------------------------------------------------
<S> <C> <C>
Utility-Federated Value $0--$150 million 0.75%
greater than $150 million 0.60%
greater than $500 million 0.50%
Venture Value-Real Estate $0--$100 million 0.80%
greater than $100 million 0.75%
greater than $500 million 0.70%
Putnam Growth $0--$150 million 0.85%
greater than $150 million 0.80%
greater than $300 million 0.70%
International Growth and $0--$150 million 1.00%
Income greater than $150 million 0.90%
greater than $300 million 0.80%
Global Equities $0--$ 50 million 0.90%
greater than $ 50 million 0.80%
greater than $150 million 0.70%
greater than $300 million 0.65%
Aggressive Growth $0--$100 million 0.75%
greater than $100 million 0.675%
greater than $250 million 0.625%
greater than $500 million 0.60%
Emerging Markets greater than $ 0 1.25%
</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 Trust's Trustees and the oversight and
supervision of SAAMCo, which pays the subadvisers' fees.
Goldman Sachs Asset Management International, an affiliate of Goldman Sachs &
Co., serves as subadviser for the Global Bond Portfolio; Goldman Sachs Asset
Management, a separate operating division of Goldman Sachs & Co., serves as
subadviser for the Asset Allocation Portfolio; Federated Investment Counseling
serves as a subadviser for the Corporate Bond, Utility and Federated Value
Portfolios; Morgan Stanley Asset Management Inc., a wholly owned subsidiary of
Morgan Stanley Group, Inc., serves as subadviser for the Worldwide High Income
and International Diversified Equities Portfolios; Phoenix Investment Counsel,
Inc. serves as subadviser for the Balanced/Phoenix Investment Counsel and
Growth/Phoenix Investment Counsel Portfolios; Alliance Capital Management L.P.
serves as a subadviser for the Growth-Income, Alliance Growth and Global
Equities Portfolios; Davis Selected Advisers, L.P. serves as subadviser for the
Venture Value and Real Estate Portfolios; and Putnam Investment Management, Inc.
serves as subadviser for the Putnam Growth, International Growth and Income and
Emerging Markets Portfolios. Effective April 16, 1997 Putnam Investment
Management, Inc. assumed the role as subadviser from Provident Investment
Counsel, Inc. for the Putnam Growth Portfolio (formerly the Provident Growth
Portfolio).
---------------------
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<PAGE> 120
The portion of the investment advisory fees received by SAAMCo which are paid
to subadvisers are as follows:
<TABLE>
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ----------------------------------------------------------------
<S> <C> <C>
Corporate Bond $0--$ 25 million 0.30%
greater than $ 25 million 0.25%
greater than $100 million 0.20%
greater than $150 million 0.15%
Global Bond- $0--$ 50 million 0.40%
Asset Allocation greater than $ 50 million 0.30%
greater than $150 million 0.25%
greater than $250 million 0.20%
Worldwide High Income- $0--$350 million 0.65%
International Diversified greater than $350 million 0.60%
Equities
Balanced/Phoenix $0--$ 50 million 0.35%
Investment Counsel- greater than $ 50 million 0.30%
Growth-Income- greater than $150 million 0.25%
Alliance Growth- greater than $300 million 0.20%
Growth/Phoenix greater than $500 million 0.15%
Investment Counsel
Utility-Federated Value $0--$ 20 million 0.55%
greater than $ 20 million 0.35%
greater than $ 50 million 0.25%
greater than $150 million 0.20%
greater than $500 million 0.15%
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ----------------------------------------------------------------
<S> <C> <C>
Venture Value-Real Estate $0--$100 million 0.45%
greater than $100 million 0.40%
greater than $500 million 0.35%
Putnam Growth $0--$150 million 0.50%
greater than $150 million 0.45%
greater than $300 million 0.35%
Global Equities $0--$ 50 million 0.50%
greater than $ 50 million 0.40%
greater than $150 million 0.30%
greater than $300 million 0.25%
International Growth $0--$150 million 0.65%
and Income greater than $150 million 0.55%
greater than $300 million 0.45%
Emerging Markets $0--$150 million 1.00%
greater than $150 million 0.95%
greater than $300 million 0.85%
</TABLE>
For certain Portfolios, the Adviser has voluntarily agreed to reimburse
expenses, if necessary, to keep annual operating expenses at or below the
following percentages of each of the following Portfolio's average net assets:
SunAmerica Balanced Portfolio -- 1.00%, Utility Portfolio -- 1.05%, Federated
Value Portfolio -- 1.05%, International Growth and Income Portfolio -- 1.60%,
Real Estate Portfolio -- 1.25%, Emerging Markets Portfolio -- 1.90% and
Aggressive Growth Portfolio -- 1.05%. The Adviser also may voluntarily reimburse
additional amounts to increase the investment return to a Portfolio's investors.
The Adviser may terminate all such waivers and/or reimbursements at any time.
Further, effective June 3, 1996, any waivers or reimbursements made by the
Adviser with respect to a Portfolio are subject to recoupment from that
Portfolio within the following two years, provided that the Portfolio is able to
effect such payment to the Adviser and remain in compliance with the foregoing
expense limitations.
The impact of such expense reimbursements is reflected in the Statement of
Operations under the caption "expenses reimbursed by the investment adviser."
6. ORGANIZATIONAL EXPENSES: Costs incurred by the Adviser in connection with
the organization and registration of the Trust amounted to $204,704.
Organizational expenses are amortized on a straight line basis by each
applicable Portfolio of the Trust over the period of benefit not to exceed 60
months from the date the respective Portfolio commenced operations.
7. PURCHASES AND SALES OF SECURITIES: Information with respect to purchases and
sales of long-term securities for the year ended November 30, 1997, 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............... $ -- $267,032,716 $45,996,402 $411,169,984 $194,084,987 $62,641,957
Sales of portfolio
securities............... -- 239,654,078 22,405,865 347,721,995 120,395,277 33,222,356
U.S. government securities
included above were as
follows:
Purchases of U.S.
government securities.... -- 41,002,858 5,180,703 2,907,188 -- 14,242,858
Sales of U.S. government
securities............... -- 46,845,461 3,319,617 2,898,750 -- 6,484,046
</TABLE>
- ---------------------
120
<PAGE> 121
<TABLE>
<CAPTION>
BALANCED/PHOENIX
INVESTMENT ASSET FEDERATED
COUNSEL ALLOCATION UTILITY GROWTH-INCOME VALUE
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Purchases of portfolio securities... $210,883,565 $ 862,519,187 $ 22,656,282 $ 340,518,522 $ 52,136,061
Sales of portfolio securities....... 198,703,125 716,316,426 9,881,504 188,082,505 13,981,863
U.S. government securities included
above were as follows:
Purchases of U.S. government
securities........................ 100,506,017 497,120,181 -- 9,846,665 218,901
Sales of U.S. government
securities........................ 97,873,551 472,455,217 -- 5,699,550 580,945
</TABLE>
<TABLE>
<CAPTION>
GROWTH/PHOENIX
VENTURE PUTNAM INVESTMENT ALLIANCE GLOBAL
VALUE GROWTH COUNSEL GROWTH EQUITIES
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Purchases of portfolio securities... $508,403,782 $ 250,872,847 $414,486,079 $ 784,255,020 $ 389,226,183
Sales of portfolio securities....... 159,292,036 226,945,713 397,137,100 581,579,885 334,058,797
U.S. government securities included
above were as follows:
Purchases of U.S. government
securities........................ 667,651 868,261 6,089,651 8,594,670 --
Sales of U.S. government
securities........................ 376,658 9,311,633 8,038,393 15,660,791 --
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
GROWTH & DIVERSIFIED AGGRESSIVE EMERGING
INCOME EQUITIES REAL ESTATE GROWTH MARKETS
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Purchases of portfolio securities... $ 45,154,469 $ 166,708,332 $ 25,575,741 $ 201,086,228 $ 28,502,038
Sales of portfolio securities....... 4,855,692 107,056,502 1,008,403 141,546,246 6,848,213
U.S. government securities included
above were as follows:
Purchases of U.S. government
securities........................ -- -- -- 2,424,188 --
Sales of U.S. government
securities........................ -- -- -- -- --
</TABLE>
8. TRANSACTIONS WITH AFFILIATES: The following Portfolios incurred brokerage
commissions with an affiliated broker:
<TABLE>
<CAPTION>
GOLDMAN SHELBY SUNAMERICA ROYAL ALLIANCE
SACHS & CO. CULLOM DAVIS SECURITIES, INC. ASSOCIATES, INC.
----------- ------------ ---------------- ----------------
<S> <C> <C> <C> <C>
Asset Allocation Portfolio........... $77,151 $ -- $ -- $ --
Venture Value Portfolio.............. 43,704 43,992 --
Putnam Growth Portfolio.............. -- -- 400 520
Growth/Phoenix Investment Counsel.... -- -- -- 1,220
</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, 1997, the High-Yield Bond Portfolio
had borrowings outstanding for day under the line of credit and incurred $
in interest charges related to these borrowings. The High-Yield Bond Portfolio
did not have any outstanding borrowing at November 30, 1997.
---------------------
121
<PAGE> 122
- ---------------------
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS*
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET TOTAL
ASSET NET NET REALIZED & FROM
VALUE INVEST- UNREALIZED INVEST-
PERIOD BEGINNING MENT GAIN (LOSS) ON MENT
ENDED OF PERIOD INCOME** INVESTMENTS OPERATIONS
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash Management Portfolio
2/9/93-
11/30/93 $ 10.00 $ 0.19 $ 0.01 $ 0.20
11/30/94 10.20 0.38 (0.02) 0.36
11/30/95 10.47 0.56 0.01 0.57
11/30/96 10.70 0.53 (0.02) 0.51
11/30/97# 10.76 0.53 0.01 0.54
Global Bond Portfolio
7/1/93-
11/30/93 10.00 0.13 0.17 0.30
11/30/94 10.30 0.53 (0.86) (0.33)
11/30/95 9.83 0.60 0.97 1.57
11/30/96 11.02 0.59 0.54 1.13
11/30/97# 11.40 0.52 0.38 0.90
Corporate Bond Portfolio
7/1/93-
11/30/93 10.00 0.14 0.05 0.19
11/30/94 10.19 0.52 (0.87) (0.35)
11/30/95 9.75 0.60 1.00 1.60
11/30/96 10.82 0.65 0.03 0.68
11/30/97# 11.09 0.77 0.21 0.98
High-Yield Bond Portfolio
2/9/93-
11/30/93 10.00 0.76 0.36 1.12
11/30/94 11.12 1.20 (1.65) (0.45)
11/30/95 10.32 1.11 0.12 1.23
11/30/96 10.53 0.98 0.48 1.46
11/30/97# 11.04 1.04 0.48 1.52
Worldwide High Income Portfolio
10/28/94-
11/30/94 10.00 0.04 (0.09) (0.05)
11/30/95 9.95 1.10 0.47 1.57
11/30/96 11.42 1.25 1.60 2.85
11/30/97# 13.35 0.98 0.68 1.66
SunAmerica Balanced Portfolio
6/3/96-
11/30/96 10.00 0.10 1.03 1.13
11/30/97# 11.13 0.23 2.15 2.38
Balanced/Phoenix Investment Counsel Portfolio
10/28/94-
11/30/94 10.00 0.04 (0.08) (0.04)
11/30/95 9.96 0.34 2.23 2.57
11/30/96 12.48 0.34 1.31 1.65
11/30/97# 13.63 0.37 1.39 1.76
<CAPTION>
DIVIDENDS NET NET
DIVIDENDS FROM NET ASSET ASSETS
DECLARED FROM REALIZED VALUE END OF
PERIOD NET INVESTMENT GAIN ON END OF TOTAL PERIOD
ENDED INCOME INVESTMENTS PERIOD RETURN*** (000'S)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash Management Portfolio
2/9/93-
11/30/93 $ -- $ -- $10.20 2.00% $ 24,603
11/30/94 (0.09) -- 10.47 3.51 89,098
11/30/95 (0.34) -- 10.70 5.59 90,731
11/30/96 (0.45) -- 10.76 4.92 91,247
11/30/97# (0.56) -- 10.74 5.22 156,119
Global Bond Portfolio
7/1/93-
11/30/93 -- -- 10.30 3.00 25,010
11/30/94 (0.09) (0.05) 9.83 (3.18) 44,543
11/30/95 (0.38) -- 11.02 16.40 59,759
11/30/96 (0.75) -- 11.40 10.94 68,221
11/30/97# (0.75) (0.04) 11.51 8.43 89,043
Corporate Bond Portfolio
7/1/93-
11/30/93 -- -- 10.19 1.90 11,667
11/30/94 (0.05) (0.04) 9.75 (3.41) 15,869
11/30/95 (0.53) -- 10.82 17.01 29,475
11/30/96 (0.41) -- 11.09 6.51 37,207
11/30/97# (0.53) -- 11.54 9.26 62,272
High-Yield Bond Portfolio
2/9/93-
11/30/93 -- -- 11.12 11.20 41,851
11/30/94 (0.29) (0.06) 10.32 (4.26) 55,803
11/30/95 (1.02) -- 10.53 12.64 82,174
11/30/96 (0.95) -- 11.04 14.86 113,229
11/30/97# (0.74) -- 11.82 14.53 195,639
Worldwide High Income Portfolio
10/28/94-
11/30/94 -- -- 9.95 (0.50) 10,478
11/30/95 (0.10) -- 11.42 16.02 21,515
11/30/96 (0.87) (0.05) 13.35 26.87 49,204
11/30/97# (0.90) (0.91) 13.20 14.17 125,224
SunAmerica Balanced Portfolio
6/3/96-
11/30/96 -- -- 11.13 11.30 10,224
11/30/97# (0.04) (0.02) 13.45 21.48 44,621
Balanced/Phoenix Investment Counsel Portfolio
10/28/94-
11/30/94 -- -- 9.96 (0.40) 1,516
11/30/95 (0.05) -- 12.48 25.89 32,429
11/30/96 (0.19) (0.31) 13.63 13.75 70,021
11/30/97# (0.23) (0.41) 14.75 13.52 95,721
<CAPTION>
RATIO OF
EXPENSES RATIO OF NET
TO INVESTMENT
AVERAGE INCOME TO AVERAGE
PERIOD NET AVERAGE NET PORTFOLIO COMMISSION
ENDED ASSETS ASSETS TURNOVER PER SHARE@
- ----------------------------------------------------------------------------------------------------------------
<S> <C>
Cash Management Portfolio
2/9/93-
11/30/93 0.71%+++ 2.53%+++ --% $ NA
11/30/94 0.70 ++ 3.73++ -- NA
11/30/95 0.67 5.32 -- NA
11/30/96 0.62 4.90 -- NA
11/30/97# 0.63 5.06 -- NA
Global Bond Portfolio
7/1/93-
11/30/93 1.35 +++ 3.56+++ 84 NA
11/30/94 1.06 5.29 347 NA
11/30/95 0.95 5.89 339 NA
11/30/96 0.89 5.44 223 NA
11/30/97# 0.90 4.70 360 NA
Corporate Bond Portfolio
7/1/93-
11/30/93 0.94 +++ 3.92+++ 208 NA
11/30/94 0.94 ++ 5.21++ 419 NA
11/30/95 0.96 ++ 5.93++ 412 NA
11/30/96 0.97 6.11 338 NA
11/30/97# 0.91 6.99 49 NA
High-Yield Bond Portfolio
2/9/93-
11/30/93 0.94 +++ 9.43+++ 229 NA
11/30/94 0.92 ++ 11.07++ 225 NA
11/30/95 0.80 10.80 174 NA
11/30/96 0.77 9.41 107 NA
11/30/97# 0.75 9.26 243 0.06
Worldwide High Income Portfolio
10/28/94-
11/30/94 1.60 +++ 4.48+++ 2 NA
11/30/95 1.30 10.46 176 NA
11/30/96 1.18 10.45 177 NA
11/30/97# 1.10 7.58 146 NA
SunAmerica Balanced Portfolio
6/3/96-
11/30/96 1.00 +++ 1.92+++ 40 .0600
11/30/97# 1.00 1.82 143 .0600
Balanced/Phoenix Investment Counsel Portfolio
10/28/94-
11/30/94 1.00 +++ 4.25+++ 10 NA
11/30/95 0.98 ++ 3.08++ 153 NA
11/30/96 0.84 2.74 194 .0589
11/30/97# 0.82 2.63 271 .0526
</TABLE>
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of Anchor
National Life Insurance Company and First SunAmerica Life Insurance
Company. If such expenses had been included, total return would have
been lower for each period presented.
@ The average commission per share is derived by dividing the agency
commissions paid on equity securities trades by the number of shares
purchased or sold.
# Unaudited
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995, 1996 and 1997,
the investment adviser waived a portion of or all fees and assumed a
portion of or all expenses for the portfolios. If all fees and expenses
had been incurred by the portfolios, the ratio of expenses to average net
assets and the ratio of net investment income to average net assets would
have been as follows:
<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME
----------------------------------------- --------------------------------------------
1993 1994 1995 1996 1997 1993 1994 1995 1996 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
----------------------------------------- --------------------------------------------
Cash Management Portfolio.......... 1.10% 0.78% 0.67% 0.62% 0.63% 2.14% 3.65% 5.32% 4.90% 5.06%
Global Bond Portfolio.............. 1.81 1.06 0.95 0.89 0.90 3.10 5.29 5.89 5.44 4.70
Corporate Bond Portfolio........... 1.81 1.09 0.97 0.97 0.91 3.05 5.06 5.92 6.11 6.99
High-Yield Bond Portfolio.......... 1.29 0.93 0.80 0.77 0.75 9.08 11.06 10.80 9.41 9.26
Worldwide High Income Portfolio.... -- 2.26 1.30 1.18 1.10 -- 3.82 10.46 10.45 7.58
SunAmerica Balanced Portfolio...... -- -- -- 1.43 1.00 -- -- -- 1.49 1.82
Balanced/Phoenix Investment Counsel
Portfolio........................ -- 6.82 1.11 0.84 0.82 -- (1.57) 2.95 2.74 2.63
</TABLE>
See Notes to Financial Statements
- ---------------------
122
<PAGE> 123
- ---------------------
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS* -- (CONTINUED)
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET TOTAL
ASSET NET NET REALIZED & FROM
VALUE INVEST- UNREALIZED INVEST-
PERIOD BEGINNING MENT GAIN (LOSS) ON MENT
ENDED OF PERIOD INCOME** INVESTMENTS OPERATIONS
- -----------------------------------------------------------------------------------------------------------
<S> <C>
Asset Allocation Portfolio
7/1/93-
11/30/93 $ 10.00 $ 0.08 $ 0.28 $ 0.36
11/30/94 10.36 0.29 (0.25) 0.04
11/30/95 10.32 0.42 2.24 2.66
11/30/96 12.74 0.48 2.00 2.48
11/30/97# 14.52 0.44 2.56 3.00
Utility Portfolio
6/3/96-
11/30/96 10.00 0.24 0.51 0.75
11/30/97# 10.75 0.36 1.91 2.27
Growth-Income Portfolio
2/9/93-
11/30/93 10.00 0.12 0.49 0.61
11/30/94 10.61 0.13 (0.36) (0.23)
11/30/95 10.33 0.17 3.31 3.48
11/30/96 13.71 0.18 3.48 3.66
11/30/97# 16.82 0.17 4.69 4.86
Federated Value Portfolio
6/3/96-
11/30/96 10.00 0.07 1.01 1.08
11/30/97# 11.08 0.13 2.72 2.85
Venture Value Portfolio
10/28/94-
11/30/94 10.00 0.03 (0.25) (0.22)
11/30/95 9.78 0.17 3.55 3.72
11/30/96 13.47 0.18 3.46 3.64
11/30/97# 16.90 0.19 4.73 4.92
Putnam Growth Portfolio
2/9/93-
11/30/93 10.00 0.02 0.02 0.04
11/30/94 10.04 0.03 (0.01) 0.02
11/30/95 10.05 (0.01) 3.09 3.08
11/30/96 13.10 -- 2.61 2.61
11/30/97# 15.71 0.03 3.93 3.96
Growth/Phoenix Investment Counsel Portfolio
2/9/93-
11/30/93 10.00 0.17 0.61 0.78
11/30/94 10.78 0.16 (0.87) (0.71)
11/30/95 10.01 0.12 3.14 3.26
11/30/96 13.14 0.11 2.16 2.27
11/30/97# 14.39 0.11 2.48 2.59
<CAPTION>
DIVIDENDS NET NET
DIVIDENDS FROM NET ASSET ASSETS
DECLARED FROM REALIZED VALUE END OF
PERIOD NET INVESTMENT GAIN ON END OF TOTAL PERIOD
ENDED INCOME INVESTMENTS PERIOD RETURN*** (000'S)
- --------------------------------------------------------------------------------------------------------------------
<S> <C>
Asset Allocation Portfolio
7/1/93-
11/30/93 $ -- $ -- $10.36 3.60% $ 35,590
11/30/94 (0.05) (0.03) 10.32 0.30 106,856
11/30/95 (0.20) (0.04) 12.74 26.10 199,836
11/30/96 (0.31) (0.39) 14.52 20.27 316,388
11/30/97# (0.40) (0.91) 16.21 21.97 526,585
Utility Portfolio
6/3/96-
11/30/96 -- -- 10.75 7.50 6,299
11/30/97# (0.09) (0.02) 12.91 21.26 24,366
Growth-Income Portfolio
2/9/93-
11/30/93 -- -- 10.61 6.10 45,080
11/30/94 (0.04) (0.01) 10.33 (2.20) 84,899
11/30/95 (0.10) -- 13.71 33.89 171,281
11/30/96 (0.12) (0.43) 16.82 27.41 325,463
11/30/97# (0.13) (0.73) 20.82 30.11 622,062
Federated Value Portfolio
6/3/96-
11/30/96 -- -- 11.08 10.80 12,460
11/30/97# (0.03) -- 13.90 25.75 59,024
Venture Value Portfolio
10/28/94-
11/30/94 -- -- 9.78 (2.20) 4,449
11/30/95 (0.03) -- 13.47 38.17 154,908
11/30/96 (0.09) (0.12) 16.90 27.44 516,413
11/30/97# (0.09) (0.26) 21.47 29.62 1,140,053
Putnam Growth Portfolio
2/9/93-
11/30/93 -- -- 10.04 0.40 42,911
11/30/94 (0.01) -- 10.05 0.19 75,342
11/30/95 (0.03) -- 13.10 30.66 115,276
11/30/96 -- -- 15.71 19.92 160,073
11/30/97# -- (0.52) 19.15 26.01 234,726
Growth/Phoenix Investment Counsel Portfolio
2/9/93-
11/30/93 -- -- 10.78 7.80 65,032
11/30/94 (0.06) -- 10.01 (6.64) 104,194
11/30/95 (0.13) -- 13.14 32.92 149,910
11/30/96 (0.11) (0.91) 14.39 18.40 186,368
11/30/97# (0.10) (1.26) 15.62 19.78 218,496
<CAPTION>
RATIO OF
EXPENSES RATIO OF NET
TO INVESTMENT
AVERAGE INCOME TO AVERAGE
PERIOD NET AVERAGE NET PORTFOLIO COMMISSION
ENDED ASSETS ASSETS TURNOVER PER SHARE@
- -----------------------------------------------------------------------------------------------------------
<S> <C>
Asset Allocation Portfolio
7/1/93-
11/30/93 0.99%+++ 2.33%+++ 71% $ NA
11/30/94 0.94++ 2.71++ 152 NA
11/30/95 0.81 3.62 207 NA
11/30/96 0.74 3.66 200 .0587
11/30/97# 0.68 2.88 176 .0591
Utility Portfolio
6/3/96-
11/30/96 1.05+++ 4.41+++ 24 .0439
11/30/97# 1.05++ 3.15++ 77 .0365
Growth-Income Portfolio
2/9/93-
11/30/93 0.82+++ 1.59+++ 27 NA
11/30/94 0.81++ 1.26++ 59 NA
11/30/95 0.77 1.42 59 NA
11/30/96 0.72 1.21 82 .0597
11/30/97# 0.65 0.89 44 .0555
Federated Value Portfolio
6/3/96-
11/30/96 1.05+++ 1.26+++ 30 .0520
11/30/97# 1.03 1.03 46 .0494
Venture Value Portfolio
10/28/94-
11/30/94 1.10+++ 3.93+++ -- NA
11/30/95 1.00++ 1.43++ 18 NA
11/30/96 0.85 1.21 22 .0598
11/30/97# 0.79 0.98 22 .0599
Putnam Growth Portfolio
2/9/93-
11/30/93 0.97+++ 0.32+++ 40 NA
11/30/94 0.96++ 0.31++ 54 NA
11/30/95 0.93 (0.05) 52 NA
11/30/96 0.90 (0.02) 63 .0443
11/30/97# 0.91 0.18 125 .0322
Growth/Phoenix Investment Counsel Portfolio
2/9/93-
11/30/93 0.82+++ 2.20+++ 165 NA
11/30/94 0.81++ 1.52++ 211 NA
11/30/95 0.76 1.01 229 NA
11/30/96 0.74 0.82 164 .0534
11/30/97# 0.73 0.77 217 .0530
</TABLE>
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of Anchor
National Life Insurance Company and First SunAmerica Life Insurance
Company. If such expenses had been included, total return would have
been lower for each period presented.
@ The average commission per share is derived by dividing the agency
commissions paid on equity securities trades by the number of shares
purchased or sold.
# Unaudited
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995, 1996 and 1997,
the investment adviser waived a portion of or all fees and assumed a
portion of or all expenses for the portfolios. If all fees and expenses
had been incurred by the portfolios, the ratio of expenses to average net
assets and the ratio of net investment income (loss) to average net
assets would have been as follows:
<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME (LOSS)
----------------------------------------- ---------------------------------------------
1993 1994 1995 1996 1997 1993 1994 1995 1996 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
----------------------------------------- ---------------------------------------------
Asset Allocation Portfolio........ 1.67% 0.94% 0.81% 0.74% 0.68% 1.65% 2.71% 3.62% 3.66% 2.88%
Utility Portfolio................. -- -- -- 1.93 1.24 -- -- -- 3.53 2.96
Growth-Income Portfolio........... 1.40 0.89 0.77 0.72 0.65 1.01 1.18 1.42 1.21 0.89
Federated Value Portfolio......... -- -- -- 1.57 1.03 -- -- -- 0.74 1.03
Venture Value Portfolio........... -- 3.89 1.02 0.85 0.79 -- 1.14 1.41 1.21 0.98
Putnam Growth Portfolio........... 1.46 1.05 0.93 0.90 0.91 (0.17) 0.22 (0.05) (0.02) 0.18
Growth/Phoenix Investment Counsel
Portfolio....................... 1.28 0.87 0.76 0.74 0.73 1.74 1.46 1.01 0.82 0.77
</TABLE>
See Notes to Financial Statements
---------------------
123
<PAGE> 124
- ---------------------
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS* -- (CONTINUED)
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET NET TOTAL DIVIDENDS
ASSET INVEST- NET REALIZED & FROM DECLARED FROM
VALUE MENT UNREALIZED INVEST- NET
PERIOD BEGINNING INCOME GAIN (LOSS) ON MENT INVESTMENT
ENDED OF PERIOD (LOSS)** INVESTMENTS OPERATIONS INCOME
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Alliance Growth Portfolio
2/9/93-
11/30/93 $ 10.00 $ 0.05 $ 0.87 $ 0.92 $ --
11/30/94 10.92 0.04 (0.14) (0.10) (0.01)
11/30/95 10.64 0.07 5.08 5.15 (0.03)
11/30/96 15.63 0.08 4.07 4.15 (0.04)
11/30/97# 18.73 0.08 4.84 4.92 (0.05)
Global Equities Portfolio
2/9/93-
11/30/93 10.00 0.03 0.96 0.99 --
11/30/94 10.99 0.05 0.71 0.76 (0.01)
11/30/95 11.67 0.12 1.64 1.76 (0.08)
11/30/96 13.06 0.14 2.19 2.33 (0.14)
11/30/97# 14.92 0.09 1.79 1.88 (0.13)
International Growth and Income Portfolio
6/2/97-
11/30/97# 10.00 0.03 0.38 0.41 --
International Diversified Equities Portfolio
10/28/94-11/30/94 10.00 0.01 (0.23) (0.22) --
11/30/95 9.78 0.07 0.38 0.45 (0.08)
11/30/96 10.15 0.05 1.43 1.48 (0.26)
11/30/97# 11.37 0.09 0.28 0.37 (0.31)
Real Estate Portfolio
6/2/97-
11/30/97# 10.00 0.16 1.37 1.53 --
Aggressive Growth Portfolio
6/3/96-
11/30/96 10.00 0.02 0.34 0.36 --
11/30/97# 10.36 0.01 1.40 1.41 (0.01)
Emerging Markets Portfolio
6/2/97-
11/30/97# 10.00 0.06 (2.03) (1.97) --
<CAPTION>
DIVIDENDS NET NET
FROM NET ASSET ASSETS
REALIZED VALUE END OF
PERIOD GAIN ON END OF TOTAL PERIOD
ENDED INVESTMENTS PERIOD RETURN*** (000'S)
- ------------------------------------------------------------------------------------------------------------
<S> <C>
Alliance Growth Portfolio
2/9/93-
11/30/93 $ -- $10.92 9.20% $ 23,256
11/30/94 (0.17) 10.64 (0.93) 53,213
11/30/95 (0.13) 15.63 48.91 167,870
11/30/96 (1.01) 18.73 28.05 381,367
11/30/97# (1.04) 22.56 27.80 704,533
Global Equities Portfolio
2/9/93-
11/30/93 -- 10.99 9.90 43,737
11/30/94 (0.07) 11.67 6.87 136,758
11/30/95 (0.29) 13.06 15.58 165,752
11/30/96 (0.33) 14.92 18.21 246,482
11/30/97# (0.69) 15.98 13.30 341,639
International Growth and Income Portfolio
6/2/97-
11/30/97# -- 10.41 4.10 42,845
International Diversified Equities Portfolio
10/28/94-11/30/94 -- 9.78 (2.20) 12,438
11/30/95 -- 10.15 4.63 48,961
11/30/96 -- 11.37 14.85 157,008
11/30/97# (0.10) 11.33 3.52 248,927
Real Estate Portfolio
6/2/97-
11/30/97# -- 11.53 15.30 29,565
Aggressive Growth Portfolio
6/3/96-
11/30/96 -- 10.36 3.60 35,124
11/30/97# -- 11.76 13.62 103,603
Emerging Markets Portfolio
6/2/97-
11/30/97# -- 8.03 (19.70) 19,979
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES TO INCOME TO AVERAGE
PERIOD AVERAGE NET AVERAGE NET PORTFOLIO COMMISSION
ENDED ASSETS ASSETS TURNOVER PER SHARE@
- -------------------------------------------------------------------------------------------------------------
<S> <C>
Alliance Growth Portfolio
2/9/93-
11/30/93 0.82%+++ 0.61%+++ 73% $ NA
11/30/94 0.82++ 0.37++ 146 NA
11/30/95 0.79 0.51 138 NA
11/30/96 0.71 0.51 121 .0649
11/30/97# 0.65 0.37 110 .0617
Global Equities Portfolio
2/9/93-
11/30/93 1.50+++ 0.38+++ 58 NA
11/30/94 1.28 0.42 67 NA
11/30/95 1.14 1.02 106 NA
11/30/96 1.03 1.04 70 .0256
11/30/97# 0.95 0.58 115 .0284
International Growth and Income Portfolio
6/2/97-
11/30/97# 1.60+++ 0.61+++ 19 .0030
International Diversified Equities Portfolio
10/28/94-11/30/94 1.70+++ 1.60+++ -- NA
11/30/95 1.70++ 0.76++ 52 NA
11/30/96 1.59 0.47 53 .0023
11/30/97# 1.35 0.82 56 .0008
Real Estate Portfolio
6/2/97-
11/30/97# 1.25+++ 3.25+++ 7 .0600
Aggressive Growth Portfolio
6/3/96-
11/30/96 1.05+++ 0.46+++ 47 .0600
11/30/97# 0.90 (0.13) 221 .0600
Emerging Markets Portfolio
6/2/97-
11/30/97# 1.90+++ 1.33+++ 49 .0011
</TABLE>
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of Anchor
National Life Insurance Company and First SunAmerica Life Insurance
Company. If such expenses had been included, total return would have
been lower for each period presented.
@ The average commission per share is derived by dividing the agency
commissions paid on equity securities trades by the number of shares
purchased or sold.
# Unaudited
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995, 1996 and 1997,
the investment adviser waived a portion of or all fees and assumed a
portion of or all expenses for the portfolios. If all fees and expenses
had been incurred by the portfolios, the ratio of expenses to average net
assets and the ratio of net investment income (loss) to average net
assets would have been as follows:
<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME (LOSS)
----------------------------------------- ---------------------------------------------
1993 1994 1995 1996 1997 1993 1994 1995 1996 1997
----------------------------------------- ---------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Alliance Growth Portfolio........ 1.56% 0.96% 0.79% 0.71% 0.65% (0.13)% 0.23% 0.51% 0.51% 0.37%
Global Equities Portfolio........ 2.52 1.28 1.14 1.03 0.95 (0.64) 0.42 1.02 1.04 0.58
+International Growth and Income
Portfolio....................... -- -- -- -- 2.02 -- -- -- -- 0.19
International Diversified
Equities Portfolio.............. -- 3.50 2.09 1.59 1.35 -- (0.20) 0.37 0.47 0.82
+Real Estate Portfolio............ -- -- -- -- 1.36 -- -- -- -- 3.14
Aggressive Growth Portfolio...... -- -- -- 1.09 0.90 -- -- -- 0.42 (0.13)
+Emerging Markets Portfolio....... -- -- -- -- 2.60 -- -- -- -- 0.63
</TABLE>
See Notes to Financial Statements
- ---------------------
124
<PAGE> 61
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 and unaudited financial statements of
SunAmerica Series Trust with respect to the Registrant's
fiscal year ended November 30, 1997. The Financial Highlights
are set forth in Part A of the Prospectus under the caption
"Financial Highlights." No financial statements are included
in Part C.
All other financial statements, schedules and historical
financial information are omitted because the conditions
requiring their filing do not exist.
(b) Exhibits.
(1) Declaration of Trust, as amended. Incorporated herein by
reference to Post-Effective Amendment No. 6 to the Registrant's
Registration Statement on Form N-1A (File No. 2-85370) filed on
February 29, 1996.
(2) By-Laws. Incorporated herein by reference to Post-Effective
Amendment No. 6 to the Registrant's Registration Statement on
Form N-1A (File No. 2-85370) filed on February 29, 1996.
(3) Voting Trust Agreement. Inapplicable.
(4) Share of Beneficial Interest. Inapplicable.
(5)(a) Investment Advisory and Management Agreement between
Registrant and SunAmerica Asset Management Corp. Incorporated
herein by reference to Post-Effective Amendment No. 12 to the
Registrant's Registration Statement on Form N-1A filed on May
7, 1997.
(5)(b) Subadvisory Agreements. Incorporated herein by
reference to Post-Effective Amendment No. 6 to the
Registrant's Registration Statement on Form N-1A (File No.
2-85370) filed on February 29, 1996 and also Incorporated
herein by reference to Post-Effective Amendment No. 12 to the
Registrant's Registration Statement on Form N-1A filed on May
7, 1997.
(6) Distribution Agreement. Inapplicable.
<PAGE> 62
(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.
Incorporated herein by reference to Post-Effective Amendment
No. 12 to the Registrant's Registration Statement on Form N-1A
filed on May 7, 1997.
(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. Inapplicable.
(18) 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.
C-2
<PAGE> 63
Item 26. Number of Holders of Securities.
As of November 30, 1997, the number of record holders of SunAmerica
Series Trust was as follows:
Title of Class Number of Record Holders
Shares of Beneficial Interest 4*
* Held by Variable Separate Account and Variable Annuity Account Four
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> 64
(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> 65
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> 66
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> 67
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., Putnam Investment
Management, 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> 68
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> 69
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. 13 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. 13 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 29th day of December, 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. 13 to Registrant's Registration
Statement has been signed below by the following persons in the capacities and
on the dates indicated:
<TABLE>
<S> <C> <C>
* Trustee, Chairman and December 29, 1997
- ------------------------------ President
James K. Hunt (Principal Executive Officer)
* Senior Vice President, December 29, 1997
- ------------------------------ Treasurer and Controller
Scott L. Robinson (Principal Financial
and Accounting Officer)
* Trustee December 29, 1997
- ------------------------------
Richards D. Barger
* Trustee December 29, 1997
- ------------------------------
Norman J. Metcalfe
* Trustee December 29, 1997
- ------------------------------
Allan L. Sher
* Trustee December 29, 1997
- ------------------------------
William M. Wardlaw
*By: /s/ Robert M. Zakem
-------------------------
Robert M. Zakem
Attorney-in-Fact
</TABLE>
<PAGE> 70
SUNAMERICA SERIES TRUST
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Name
----------- ----
<S> <C>
11 Consent of Accountants
</TABLE>
<PAGE> 1
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Statement of Additional Information
constituting part of this Post-Effective Amendment No. 13 to the registration
statement on Form N-1A (the "Registration Statement") of our report dated
May 1, 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
December 22, 1997
