<PAGE> 1
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DEAR INVESTOR:
We are pleased to present our annual report for the SunAmerica
Series Trust, one of the underlying trusts for the Polaris
Variable Annuity from Anchor National Life Insurance Company and
First SunAmerica Life Insurance Company.
The past year has been excellent for Polaris, with assets rising
to $3.9 billion at November 30, 1996, from $2.3 billion at
November 30, 1995, placing Polaris #6 in sales among variable
annuities, according to VARDS 3rd quarter 1996 industry report.
The following is a combined perspective on the U.S. and global
economies over the one-year reporting period ended November 30,
1996, from eight of the nine investment managers who manage
Polaris (excluding Wellington Management Company, LLP, which
manages the portfolios in the Anchor Series Trust, for which you
will receive a complete report in about one month).
ECONOMIC OVERVIEW -- UNITED STATES
The U.S. economy provided an almost ideal backdrop for the stock
market in 1996, as evidenced in the performance section of this
report. The U.S. economy continued to grow in 1996, but the modest
growth rate of about 2.5% was low enough to keep inflation well
under control, according to Alliance Capital Management L.P. Davis
Selected Advisers, L.P. echoes this sentiment by stating "we have
been experiencing one of the greatest financial stories ever told.
This has certainly been one of the least volatile, solid bull
markets in history." While interest rates, inflation, and earnings
have each been fluctuating recently, they are still within
favorable ranges. SunAmerica Asset Management Corp. asserts that
the economy's unexpected strength in the second quarter surprised
many investors and brought on inflationary fears. However, as the
year progressed, the economy returned to its moderate growth pace
of 2% -- 2.5%.
STOCK MARKET
The past year has been one of tremendous rotation among various
sectors of the stock market. Despite higher interest rates and
waning corporate earnings momentum, stock prices forged
higher -- fueled by unprecedented cash inflows into equity mutual
funds and portfolios, as well as continued corporate share
buybacks. According to Phoenix Investment Counsel, Inc., liquidity
into stocks continues to be the major factor fueling equity prices
higher, despite the backdrop of a generally fully valued equity
environment.
Provident Investment Counsel, Inc. points out that this 12-month
period began with a sharp market correction in technology stocks
last Christmas season, as several telecommunication and
semiconductor powerhouses experienced problems. However, the start
of the new year saw U.S. equity markets rebound strongly as
technology reported excellent earnings and a recovery from
December lows.
Phoenix Investment Counsel, Inc. reports that since July, the
market's focus has shifted to larger companies. Investors have
poured money into the larger companies believed to provide steady
growth characteristics and ample liquidity. While this more recent
tactic drove market indices such as the S&P 500 and the Dow Jones
Industrials higher, broader measures of stock performance have
lagged.
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1
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Federated Investors believes market strength in 1996 was fueled
by strong corporate profits, corporate restructuring, and
declining interest rates -- three factors which bode well for
equity investors.
Effective investment themes adopted by many of our money
managers include stock selection in the finance, technology, and
energy production and services sectors.
BOND MARKET
Goldman Sachs Asset Management reports that the U.S. fixed
income market began the 12-month period with a robust rally,
fueled by weak economic data and low inflation. However, in
February 1996, the bond market began to come under pressure when
stronger-than-expected economic and job growth aroused fears of
higher inflation. Bond market conditions worsened during March and
April when a sharp rise in interest rates triggered a sell-off and
increased volatility. Morgan Stanley Asset Management Inc. reports
that interest rates in the U.S. peaked as economic activity
increased during the second quarter of the reporting period.
However, since then both managers conclude that economic
activity has slowed significantly and the bond market has rallied
into the fourth quarter. Goldman Sachs asserts that a central
reason for the rebound is the strong demand for Treasury bonds
from the central banks of China, Japan, and Germany, which saw
dramatically accelerated purchases towards the end of the period.
Federated Investors adds that consumer debt creation and
incremental consumer spending, which historically have been
closely correlated, declined in October 1996 as interest rates
fell significantly.
WHERE IS THE U.S. ECONOMY HEADED?
In general, all of the Polaris portfolio managers maintain a
cautiously optimistic outlook for slower, but steady growth and
low inflationary concerns in 1997. Phoenix Investment Counsel
states that they believe the economy is in the mature stage of the
growth cycle. The challenge ahead will be to identify companies
that can continue to grow earnings despite a slower growth
economic scenario, and sell at relatively attractive prices to
their growth rates. Given current conditions, Phoenix cautions,
the quest to make money in the stock market should be carefully
balanced with the instinct to protect capital -- especially in
this environment where the level of investor complacency is high.
Going forward, Provident Investment Counsel is bullish on high
quality healthcare, technology, and finance stocks. They believe
that for the past several years corporate America has fueled stock
price appreciation via improving profit margins. But gains from
productivity, layoffs, and technology are now becoming more
apparent, and Provident predicts growth will come not from tapped
out profit margins, but rather from strong revenue growth.
SunAmerica Asset Management contends that the benignly positive
gross domestic product and interest rate environment is
advantageous for growth stocks, whose price/earnings multiple
tends to expand against this backdrop as investors seek
predictable growth. They agree with Provident that the
incorporation of technology will continue to enhance productivity
in U.S. companies for some time to come. Another area
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SunAmerica Asset Management asserts will enjoy stable growth is
the energy production and services sector, driven by disinflation,
productivity improvements, enhanced technology, and the demand of
worldwide industrialization.
With 1997 come predictions of a slowing economy with moderate
GDP growth, averaging perhaps 1% -- 2%, and flattish interest
rates. Growth companies should be in great demand, according to
SunAmerica Asset Management, and trade to higher premiums if they
show consistent growth higher than the overall market.
While still positive about the U.S. equity market, Federated
Investors cautions investors not to assume the strong trend of
1996 will continue. While corporate restructuring and productivity
improvements have positioned U.S. companies well against foreign
competitors, the majority of what can be done has been done, and
Federated expects the pace to decline.
Davis Selected Advisers best sums up their views on the markets
in 1997 with what they call a potentially "euphoric bubble." In
other words, they see a scenario in which investors feel
increasingly optimistic about the market, economy, and America as
we approach the end of the millennium. That said, as seasoned
investors who have managed through bull and bear market cycles,
Davis projects that a 10% to 20% correction can occur at anytime.
As an investor, you should focus not on an occasional decline in a
single year, but rather on how much your investment will be worth
by the time you need the money. Davis also hastens to point out
that when corrections inevitably occur, it should be viewed as a
potential buying opportunity.
ECONOMIC OVERVIEW -- GLOBAL MARKETS
During the past 12 months, global bonds generally performed
well. Diversification has been exceptionally important, according
to Goldman Sachs Asset Management-International, as most
international bond markets outperformed the U.S. The European
higher-yielding bonds (Italy, Spain, and Sweden) were the best
performers of all the major bond markets during this period, while
most of the other European bond markets achieved more modest
returns but also performed well. In general, European bond markets
benefited from an accommodative environment of sluggish economic
growth and low inflation.
Within the dollar bloc, Canadian bonds did particularly well
during this period, reflecting a continuing easing of monetary
policy by the Bank of Canada, a strong currency, and a relatively
weak economy.
Alliance Capital Management reports that many of the developed
countries experienced negligible to moderate economic growth,
subdued inflation, and stable interest rates as well. In the
"core" economies of Europe, economic growth has been sluggish as
the race toward European Monetary Union (EMU) has intensified.
Manufacturing output has declined while unemployment has risen,
and interest rates have generally held steady. The U.K. has been
the exception, where unemployment has continued to decline, retail
sales are strong, and industrial production is up. However,
inflationary concerns are beginning to mount.
Morgan Stanley has been bullish on emerging market debt, which
turned in positive results during the third and fourth quarters of
the year. This performance has been a result
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3
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of a substantial tightening of credit spreads, driven mainly by
increasing signs of economic growth in the main Latin economies,
further stabilization in countries such as Venezuela and Russia,
and the potential for credit rating upgrades for countries like
the Philippines and Panama.
In Japan, economic performance has been highly volatile: An
early 1996 "mini-boom" was followed by a mid-year lull, followed
by the current gradual improvement. Alliance Capital Management
reports that October and November data revealed climbing
industrial production, increasing new car sales, and improving
housing starts. Consumer spending is still quiet, but the
jobs/applicants ratios are beginning to strengthen.
WHERE ARE THE GLOBAL MARKETS HEADED?
Morgan Stanley believes that moderate global growth has
encouraged central banks to continue their accommodative stance,
with easing monetary policies and declines in global interest
rates. As a result, excess liquidity and support for financial
assets, as well as contained inflation, should keep the present
"sweet spot" on track for a continuing global bull market.
Alliance Capital Management continues to observe a trend toward
"U.S. style" restructuring and an emphasis on higher returns on
invested capital among many corporations in Europe.
Within Europe, investors appear focused on who will join the EMU
and how stable the Euro will be. However, Morgan Stanley reports
they do not predict any delays for the EMU in 1999. They believe
the EMU will be positive for Europe's long-term competitiveness
and growth prospects.
Goldman Sachs believes that European bonds will continue to
outperform U.S. Treasuries in capital gains and yields. They also
have a positive long-term outlook on the higher-yielding markets
of Italy and Spain, although they have not offered investors a
sufficient risk premium in recent months. They are also focusing
on Latin American countries because they believe this region has
strong risk/reward characteristics.
Looking ahead, Morgan Stanley is somewhat bearish on Japan,
where they feel the market has become too pessimistic about
economic growth and the need for structural reform to see the
signs of a cyclical recovery. They believe the yen will continue
to depreciate and that earnings, while not explosive, will be
supportive of the market. Most importantly, however, sentiment is
at rock bottom levels and Japan has underperformed international
markets.
IN CONCLUSION
As we begin the new year, economic prospects continue to be
stable. While years like the one just past are always welcome,
investors would do well to remember that financial markets
can -- and do -- move in both directions. Regardless of market
conditions, our money managers remain committed to helping you
achieve your long-term goals by striving to uncover promising
investment opportunities as they arise.
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Thank you for choosing Polaris as your retirement savings
investment -- we look forward to reporting to you again at
mid-year 1997.
Sincerely,
Eli Broad
Chairman and Chief Executive Officer
Anchor National Life Insurance Company
January 16, 1997
-----------------------------------------------
Investments in stocks and bonds are subject to risk, including
stock market and interest rate fluctuations. Investments in
non-U.S. stocks and bonds are subject to additional risks,
including currency fluctuations, political and social instability,
differing securities regulations and accounting standards, and
limited public information. High-yield bonds tend to be subject to
greater price swings than higher-rated bonds and, of course,
payment of interest and principal is not assured. Investments in
securities related to gold and other precious metals and minerals
are considered speculative and are impacted by a host of worldwide
economic, financial, and political factors. Mortgage-backed
securities are subject to prepayment, which can result in
reinvestment of principal at lower yields. Money market
instruments generally offer stability and income, but an
investment in these securities is not guaranteed by the U.S.
government or any other entity.
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SUNAMERICA SERIES TRUST
CASH MANAGEMENT PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 93.6% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CERTIFICATE OF DEPOSIT --3.3%
Commerzbank AG, New York Branch 5.40% due 1/08/97 (cost $3,000,131)... $ 3,000,000 $ 3,000,131
-------------
COMMERCIAL PAPER --31.7%
Banca CRT Financial Corp. 5.35% due 1/06/97........................... 4,000,000 3,978,600
Dean Witter, Discover & Co. 5.31% due 1/09/97......................... 4,000,000 3,976,990
Four Embarcadero 5.30% due 12/13/96................................... 3,000,000 2,994,700
Midamerican Energy Co. 5.28% due 12/17/96............................. 2,000,000 1,995,307
Premium Funding Series A 5.35% due 1/15/97............................ 2,137,000 2,122,709
The Walt Disney Co. 5.39% due 3/19/97................................. 5,000,000 4,917,500
United States Prime Property, Inc. 5.33% due 1/22/97.................. 5,000,000 4,961,506
Working Capital Management Co. L.P. 5.33% due 12/05/96................ 4,000,000 3,997,631
-------------
TOTAL COMMERCIAL PAPER (cost $28,946,593)............................. 28,944,943
-------------
CORPORATE SHORT-TERM NOTES -- 42.2%
Bear Stearns Co., Inc. 5.38% due 12/03/96(1).......................... 3,000,000 2,999,625
Bear Stearns Co., Inc. 5.43% due 12/02/96(1).......................... 2,500,000 2,498,714
Boatmens Credit Card Bank, New Mexico 5.36% due 12/09/96(1)........... 3,000,000 2,999,400
Boatmens First National Bank, Kansas 5.58% due 12/03/96(1)............ 2,000,000 1,999,980
Campbell Soup Co. 7.75% due 2/24/97................................... 1,000,000 1,003,750
Credit National 5.50% due 2/24/97(1).................................. 6,165,000 6,165,000
First Chicago Corp. 5.88% due 12/10/96(1)............................. 3,000,000 3,000,165
First Union Corp. 8.13% due 12/15/96.................................. 2,300,000 2,301,632
Ford Motor Credit Co. 5.20% 1/01/97................................... 1,000,000 999,705
General Motors Acceptance Corp. 5.00% due 1/27/97..................... 3,000,000 2,996,439
Iowa Illinois Gas & Electric Co. 5.88% due 7/15/97.................... 3,000,000 3,000,000
Key Bank of Wyoming 5.33% due 12/16/96(1)............................. 1,000,000 999,061
Manufacturer's Hanover Corp. 5.81% due 7/15/97(1)..................... 3,000,000 3,003,750
Nationsbank Corp. 7.50% due 2/15/97................................... 2,000,000 2,008,180
Philip Morris Cos., Inc. 8.75% due 12/01/96........................... 1,500,000 1,500,000
PNC Bank N.A., Pittsburgh 5.47% due 12/03/96(1)....................... 1,000,000 999,240
-------------
TOTAL CORPORATE SHORT-TERM NOTES (cost $38,479,408)................... 38,474,641
-------------
FEDERAL AGENCY OBLIGATION --4.5%
Federal Home Loan Bank 5.78% due 12/02/96(1) (cost $4,105,084)........ 4,100,000 4,105,084
-------------
MUNICIPAL BONDS -- 11.9%
Illinois Student Assistance Commission 5.45% 12/04/96(1).............. 4,000,000 4,000,000
Illinois Student Assistance Commission 5.45% 12/04/96(1).............. 3,000,000 3,000,000
New Hampshire State Industrial Development Authority, Revenue
5.48% due 1/22/97................................................... 2,000,000 2,000,000
Texas General Obligation 5.42% 12/04/96(1)............................ 1,875,000 1,875,000
-------------
TOTAL MUNICIPAL BONDS (cost $10,875,000).............................. 10,875,000
-------------
TOTAL SHORT-TERM SECURITIES (cost $85,406,216)........................ 85,399,799
-------------
</TABLE>
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<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 6.1% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 6.1%
Joint Repurchase Agreement Account (Note 3)
(cost $5,615,000)................................................... $ 5,615,000 $ 5,615,000
-------------
TOTAL INVESTMENTS --
(cost $91,021,216) 99.7% 91,014,799
Other assets less liabilities -- 0.3 231,997
------- -------------
NET ASSETS -- 100.0% $91,246,796
======= =============
</TABLE>
-----------------------------
(1) Variable rate security; maturity date reflects next reset
date; rate as of November 30, 1996
See Notes to Financial Statements
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SUNAMERICA SERIES TRUST
GLOBAL BOND PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(DENOMINATED IN
FOREIGN BONDS & NOTES -- 46.2% LOCAL CURRENCY) VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
DANISH KRONER -- 2.1%
Kingdom of Denmark 9.00% 2000...................................... 7,500,000 $ 1,444,946
-----------
DEUTSCHE MARK -- 14.9%
Republic of Germany 6.50% 2005..................................... 9,000,000 6,176,127
Republic of Germany 6.75% 2004..................................... 4,200,000 2,937,624
Treuhandanstalt 6.50% 2003......................................... 1,500,000 1,041,057
-----------
10,154,808
-----------
IRISH PUNT -- 2.7%
Republic of Ireland 8.00% 2000..................................... 1,000,000 1,808,171
-----------
ITALIAN LIRA -- 6.0%
Republic of Italy 10.50% 2000...................................... 5,500,000,000 4,085,590
-----------
JAPANESE YEN -- 8.7%
International Bank for Reconstruction & Development 6.75% 2001..... 150,000,000 1,616,550
Japan Development Bank 6.50% 2001.................................. 400,000,000 4,299,824
-----------
5,916,374
-----------
NETHERLANDS GUILDER -- 2.5%
Netherlands Government 7.00% 2005.................................. 2,700,000 1,717,740
-----------
POUND STERLING -- 5.7%
United Kingdom Treasury 7.50% 2006................................. 500,000 839,568
United Kingdom Treasury 8.50% 2005................................. 1,700,000 3,076,925
-----------
3,916,493
-----------
SPANISH PESETA -- 2.3%
Government of Spain 10.30% 2002.................................... 170,000,000 1,539,108
-----------
SWEDISH KRONA -- 1.3%
Kingdom of Sweden 6.00% 2005....................................... 6,500,000 916,781
-----------
TOTAL FOREIGN BONDS & NOTES (cost $30,414,688)..................... 31,500,011
-----------
</TABLE>
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<TABLE>
<CAPTION>
PRINCIPAL
U.S. GOVERNMENT -- 34.5% AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT -- 34.5%
United States Treasury Notes 5.25% 2001............................ $ 3,000,000 $ 2,947,020
United States Treasury Notes 6.38% 2001............................ 3,500,000 3,574,375
United States Treasury Notes 6.50% 2005............................ 3,500,000 3,606,645
United States Treasury Notes 6.88% 1999............................ 3,000,000 3,087,180
United States Treasury Notes 7.00% 2006............................ 5,000,000 5,329,700
United States Treasury Notes 7.88% 2004............................ 4,500,000 5,023,125
-----------
TOTAL U.S. GOVERNMENT (cost $22,612,683)........................... 23,568,045
-----------
TOTAL INVESTMENT SECURITIES (cost $53,027,371)..................... 55,068,056
-----------
<CAPTION>
SHORT-TERM SECURITIES -- 19.1%
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 19.1%
Euroclear Time Deposit with State Street Bank & Trust Co.
5.81% due 12/02/96 (cost $13,051,000)............................ 13,051,000 13,051,000
-----------
TOTAL INVESTMENTS --
(cost $66,078,371) 99.8% 68,119,056
Other assets less liabilities -- 0.2 102,361
----- -----------
NET ASSETS -- 100.0% $68,221,417
===== ===========
</TABLE>
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
------------------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*BEF 53,390,063 USD 1,757,987 12/09/96 $ 72,020
CHF 4,117,000 ITL 5,258,634,150 01/29/97 235,429
CHF 758,342 USD 601,000 01/29/97 15,837
CHF 4,008,000 USD 3,197,090 01/29/97 104,378
*DEM 4,973,654 USD 3,285,000 02/27/97 33,631
DEM 10,907,691 USD 7,223,636 02/27/97 93,080
DEM 4,600,995 USD 3,017,095 02/27/97 9,341
DKK 8,433,000 USD 1,435,918 01/22/97 963
ESP 569,782,000 USD 4,408,320 01/16/97 16,560
JPY 248,498,000 USD 2,245,518 01/24/97 46,056
JPY 421,136,000 USD 3,792,395 01/24/97 64,909
NLG 2,967,685 USD 1,739,558 01/09/97 13,456
SEK 6,301,000 USD 956,073 01/28/97 15,991
*USD 91,858 IEP 57,000 01/08/97 3,957
*USD 2,829,830 ESP 367,960,000 01/16/97 6,328
*USD 165,492 ITL 252,656,252 01/29/97 678
*USD 1,241,339 ITL 1,921,978,000 01/29/97 22,725
---------
755,339
---------
</TABLE>
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9
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<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS (continued)
------------------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE DEPRECIATION
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*GBP 1,427,847 USD 2,338,813 02/14/97 $ (57,635)
GBP 2,468,000 USD 4,067,264 02/14/97 (74,940)
IEP 1,125,000 USD 1,797,778 01/08/97 (93,318)
ITL 8,415,795,250 USD 5,484,568 01/29/97 (50,410)
*USD 1,702,544 BEF 53,390,063 12/09/96 (16,577)
*USD 2,521,182 GBP 1,501,580 02/14/97 (984)
*USD 3,318,881 DEM 5,014,000 02/27/97 (41,138)
*USD 3,380,323 DEM 5,014,000 02/27/97 (102,580)
---------
(437,582)
---------
Net Unrealized Appreciation.................... $ 317,757
=========
</TABLE>
-----------------------------
* Represents open forward foreign currency contracts and
offsetting open forward foreign currency contracts that do not
have additional market risk but have continued counterparty
settlement risk
<TABLE>
<S> <C> <C>
JPY -- Japanese Yen
BEF -- Belgian Franc ESP -- Spanish Peseta NLG -- Netherlands Guilder
CHF -- Swiss Franc GBP -- Pound Sterling SEK -- Swedish Krona
DEM -- Deutsche Mark IEP -- Irish Punt USD -- United States
DKK -- Danish Kroner ITL -- Italian Lira Dollar
</TABLE>
See Notes to Financial Statements
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SUNAMERICA SERIES TRUST
CORPORATE BOND PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 93.0% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 2.7%
Apparel & Textiles -- 0.6%
Collins & Aikman Corp. 11.50% 2006..................................... $ 100,000 $ 106,750
Westpoint Stevens, Inc. 9.38% 2005..................................... 100,000 102,750
Automotive -- 0.7%
Aftermarket Technology Corp. 12.00% 2004............................... 100,000 111,000
Exide Corp. 10.00% 2005................................................ 100,000 104,250
Lear Corp. 9.50% 2006.................................................. 50,000 53,750
Retail -- 1.4%
Penney (J.C.) Co., Inc. 7.65% 2016..................................... 500,000 519,075
-------------
997,575
-------------
CONSUMER STAPLES -- 4.0%
Food, Beverage & Tobacco -- 3.2%
Carr Gottstein Foods Co. 12.00% 2005................................... 100,000 106,000
Ralphs Grocery Co. 10.45% 2004......................................... 100,000 103,000
RJR Nabisco, Inc. 8.63% 2002........................................... 235,000 243,051
RJR Nabisco, Inc. 9.25% 2013........................................... 75,000 77,276
Smith's Food & Drug Centers, Inc. 11.25% 2007.......................... 100,000 109,000
Super Rite Foods, Inc. 10.63% 2002..................................... 500,000 532,500
Household Products -- 0.8%
Playtex Family Products Corp. 9.00% 2003............................... 100,000 98,000
Revlon Consumer Products Corp. 10.50% 2003............................. 100,000 104,500
Simmons Co. 10.75% 2006................................................ 100,000 104,000
-------------
1,477,327
-------------
ENERGY -- 2.9%
Energy Services -- 2.6%
Arkla, Inc. 9.20% 1997................................................. 65,000 66,904
Coastal Corp. 9.75% 2003............................................... 250,000 289,988
Tosco Corp. 7.00% 2000................................................. 250,000 255,050
Tosco Corp. 7.63% 2006................................................. 350,000 370,716
Energy Sources -- 0.3%
Mesa Operating Co. 10.63% 2006......................................... 100,000 108,000
-------------
1,090,658
-------------
FINANCE -- 28.2%
Banks -- 8.3%
ABN Amro Holdings NV 7.30% 2026........................................ 250,000 246,700
African Development Bank 6.88% 2015.................................... 500,000 497,545
Bank Montreal-Chicago 7.80% 2007....................................... 750,000 802,245
Continental Bank NA 12.50% 2001(1)..................................... 300,000 369,327
Security Pacific Corp. 11.50% 2000..................................... 275,000 324,822
Signet Banking Corp. 9.63% 1999........................................ 300,000 322,989
Union Bank Switzerland-New York 7.25% 2006............................. 500,000 522,965
Financial Services -- 16.0%
American General Corp. 9.63% 2018...................................... 500,000 534,355
Case Equipment Loan Trust 7.30% 2002................................... 155,029 157,639
Chevy Chase Auto Receivables 5.80% 2002................................ 121,279 121,051
</TABLE>
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11
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<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
CNA Financial Corp. 7.25% 2023......................................... $ 500,000 $ 488,710
Continental Corp. 8.25% 1999........................................... 100,000 104,727
First Nationwide Escrow Corp. 10.63% 2003*............................. 100,000 107,000
Ford Capital BV 9.38% 2001............................................. 600,000 670,164
Ford Capital BV 9.50% 2001............................................. 400,000 449,216
General Motors Acceptance Corp. 5.63% 2001............................. 300,000 292,632
Lehman Brothers Holdings, Inc. 6.13% 2001.............................. 575,000 568,180
Navistar Financial 6.55% 2001.......................................... 155,421 156,489
Pacific Mutual Life 7.90% 2023*........................................ 500,000 527,745
Premier Auto Trust 4.90% 1998.......................................... 47,118 46,882
Premier Auto Trust 7.90% 1999.......................................... 120,000 121,612
Resolution Funding Corp. zero coupon 2021.............................. 640,000 126,822
Salomon, Inc. 9.00% 1999............................................... 525,000 555,030
Standard Credit Card Master Trust 6.25% 1998........................... 260,000 260,650
Swedish Export Credit Corp. 9.88% 2038................................. 500,000 545,295
Trizec Finance Corp., Ltd. 10.88% 2005................................. 100,000 110,250
Insurance -- 3.9%
Conseco, Inc. 10.50% 2004.............................................. 600,000 721,338
GE Global Insurance Holdings Corp. 7.00% 2026.......................... 750,000 746,640
-------------
10,499,020
-------------
HEALTHCARE -- 0.7%
Health Services -- 0.4%
Genesis Health 9.75% 2005.............................................. 50,000 52,375
Tenet Healthcare Corp. 10.13% 2005..................................... 100,000 110,500
Medical Products -- 0.3%
Dade International, Inc. 11.13% 2006*.................................. 100,000 108,000
-------------
270,875
-------------
INDUSTRIAL & COMMERCIAL -- 10.5%
Business Services -- 4.1%
Allied Waste North America, Inc. 10.25% 2006*.......................... 50,000 51,250
Joy Technologies, Inc. 10.25% 2003..................................... 600,000 657,000
Knoll, Inc. 10.88% 2006................................................ 100,000 109,000
Prime Succession Acquisition 10.75% 2004*(2)........................... 50,000 53,750
Statia Terminals International 11.75% 2003*............................ 50,000 50,500
United Stationers Supply Co. 12.75% 2005............................... 50,000 55,188
Waste Management, Inc. 8.75% 2018...................................... 500,000 563,460
Machinery -- 0.3%
Alvey Systems, Inc. 11.38% 2003........................................ 100,000 104,000
Multi-Industry -- 3.5%
EnviroSource, Inc. 9.75% 2003.......................................... 50,000 47,000
Four M Corp. 12.00% 2006............................................... 50,000 52,375
News America Holdings, Inc. 10.13% 2012................................ 500,000 592,190
Tenneco, Inc. 10.00% 1998.............................................. 555,000 590,115
Transportation -- 2.6%
Ameritruck Distribution Corp. 12.25% 2005.............................. 50,000 48,750
Gearbulk Holdings Ltd. 11.25% 2004..................................... 100,000 109,000
Stena Lines AB 10.50% 2005............................................. 100,000 107,000
Transport Ocean Container Corp. 12.25% 2004............................ 600,000 716,250
-------------
3,906,828
-------------
INFORMATION & ENTERTAINMENT -- 9.1%
Broadcasting & Media -- 5.7%
Bell Cablemedia PLC zero coupon 2004(3)................................ 150,000 128,250
</TABLE>
- ---------------------
12
<PAGE> 13
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT (continued)
Broadcasting & Media (continued)
Chancellor Broadcasting Co. 9.38% 2004................................. $ 100,000 $ 99,750
Comcast UK Cable Partners Ltd. zero coupon 2007(3)..................... 175,000 119,437
Heritage Media Corp. 8.75% 2006........................................ 100,000 97,000
Nextel Communications, Inc. zero coupon 2003(3)........................ 100,000 75,250
Paramount Communications, Inc. 8.25% 2022.............................. 500,000 478,385
Peoples Choice TV Corp. zero coupon 2004(1)(3)......................... 50,000 21,500
SFX Broadcasting, Inc. 10.75% 2006..................................... 100,000 105,000
Sinclair Broadcast Group, Inc. 10.00% 2005............................. 100,000 101,000
Sullivan Broadcasting 10.25% 2005...................................... 100,000 100,500
Time Warner, Inc. 7.45% 1998........................................... 290,000 294,443
Valassis Inserts, Inc. 9.38% 1999...................................... 500,000 513,865
Cable -- 2.5%
Cablevision Systems Corp. 9.25% 2005................................... 100,000 97,750
Continental Cablevision, Inc. 9.50% 2013............................... 500,000 580,730
Echostar Satellite Broadcasting Corp. zero coupon 2004(3).............. 100,000 76,000
Rogers Cablesystems Ltd. 10.00% 2007................................... 100,000 104,750
UIH Australia Pacific, Inc. zero coupon 2006(3)........................ 100,000 52,500
Entertainment Products -- 0.1%
Cobblestone Golf Group, Inc. 11.50% 2003............................... 50,000 51,500
Leisure & Tourism -- 0.8%
AMF Group, Inc. zero coupon 2006(3).................................... 200,000 127,500
Courtyard Marriott Ltd. 10.75% 2008(2)................................. 50,000 52,750
Six Flags Theme Parks, Inc. zero coupon 2005(3)........................ 125,000 115,000
-------------
3,392,860
-------------
INFORMATION TECHNOLOGY -- 6.8%
Communication Equipment -- 2.3%
Australis Holdings Ltd. zero coupon 2002*(3)........................... 50,000 28,375
Cablevision Industries Corp. 10.75% 2002............................... 670,000 733,590
Lenfest Communications, Inc. 10.50% 2006............................... 100,000 104,000
Computers & Business Equipment -- 1.5%
Harris Corp. 10.38% 2018............................................... 500,000 557,855
Electronics -- 0.2%
Advanced Micro Devices, Inc. 11.00% 2003............................... 50,000 54,125
Paging -- 0.3%
Paging Network, Inc. 10.13% 2007....................................... 100,000 100,250
Telecommunications -- 2.5%
360 Communications Co. 7.13% 2003...................................... 160,000 160,758
Anixter, Inc. 8.00% 2003............................................... 500,000 519,925
Brooks Fiber Properties, Inc. zero coupon 2006(3)...................... 100,000 65,500
Teleport Communications Group zero coupon 2007(3)...................... 100,000 67,750
Vanguard Cellular Systems, Inc. 9.38% 2006............................. 100,000 100,375
-------------
2,492,503
-------------
MATERIALS -- 3.2%
Chemicals -- 1.4%
Arcadian Partners L.P. 10.75% 2005..................................... 100,000 111,375
Crain Industry, Inc. 13.50% 2005(2).................................... 50,000 55,625
Harris Chemical North America, Inc. 10.25% 2001........................ 100,000 103,250
HS Resources, Inc. 9.25% 2006*......................................... 50,000 50,781
Royal Oak Mines 11.00% 2006............................................ 50,000 51,500
Sterling Chemicals, Inc. 11.75% 2006................................... 50,000 51,000
Viridian, Inc. 9.75% 2003.............................................. 100,000 109,000
</TABLE>
---------------------
13
<PAGE> 14
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Forest Products -- 1.1%
Buckeye Cellulose Corp. 9.25% 2008..................................... $ 100,000 $ 103,000
Owens-Illinois, Inc. 10.50% 2002....................................... 100,000 105,250
Packaging Resources, Inc. 11.63% 2003(2)............................... 50,000 52,750
Riverwood International Corp. 10.88% 2008.............................. 100,000 90,000
Stone Container Corp. 11.50% 2004...................................... 50,000 52,000
Metals & Minerals -- 0.7%
GS Technologies, Inc. 12.25% 2005...................................... 100,000 107,000
Republic Engineered Steels, Inc. 9.88% 2001............................ 50,000 46,000
Ryderson Tull, Inc. 9.13% 2006......................................... 100,000 104,500
-------------
1,193,031
-------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 3.1%
Foreign Government -- 3.1%
Province of Quebec 13.25% 2014......................................... 290,000 352,159
Republic Of Columbia 7.25% 2003........................................ 250,000 247,200
Republic of South Africa 9.63% 1999.................................... 500,000 534,375
-------------
1,133,734
-------------
REAL ESTATE -- 2.0%
Real Estate Investment Trusts -- 2.0%
Chelsea GCA Realty, Inc. 7.75% 2001.................................... 150,000 152,407
Price REIT, Inc. 7.50% 2006............................................ 500,000 513,355
Tanger Properties Ltd. 8.75% 2001...................................... 85,000 86,091
-------------
751,853
-------------
U.S. GOVERNMENT & AGENCIES -- 18.0%
U.S. Government & Agencies -- 18.0%
Federal Home Loan Mortgage Corp. 7.50% 2026............................ 1,000,580 1,013,708
Federal Home Loan Mortgage Corp. 8.20% 1998............................ 110,000 110,378
Federal National Mortgage Association 6.50% 2011....................... 1,480,314 1,467,820
Federal National Mortgage Association 8.50% 2005....................... 750,000 799,920
Government National Mortgage Association 8.00% 2026.................... 1,498,914 1,544,811
United States Treasury Bonds 8.50% 2020................................ 120,000 148,687
United States Treasury Bonds 8.75% 2017................................ 90,000 113,203
United States Treasury Bonds Strip zero coupon 2020.................... 430,000 89,857
United States Treasury Bonds Strip zero coupon 2020.................... 6,640,000 1,413,922
-------------
6,702,306
-------------
UTILITIES -- 1.8%
Electric Utilities -- 1.6%
California Energy, Inc. 10.25% 2004.................................... 100,000 103,500
Tenaga Nasional 7.50% 2025*............................................ 500,000 506,425
Telephone -- 0.2%
Millicom International Cellular zero coupon 2006(3).................... 100,000 59,500
-------------
669,425
-------------
TOTAL BONDS & NOTES (cost $33,442,054)................................. 34,577,995
-------------
</TABLE>
- ---------------------
14
<PAGE> 15
<TABLE>
<CAPTION>
PREFERRED STOCK -- 0.6% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 0.2%
Broadcasting & Media -- 0.2%
K-III Communications Corp. 11.63%...................................... 1,059 $ 104,837
-------------
INFORMATION TECHNOLOGY -- 0.4%
Telecommunications -- 0.4%
PanAmSat, L.P. 12.75%.................................................. 106 130,701
-------------
TOTAL PREFERRED STOCK (cost $214,250).................................. 235,538
-------------
TOTAL INVESTMENT SECURITIES (cost $33,656,304)......................... 34,813,533
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 5.4% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 4.3%
British Aerospace PLC 7.55% due 5/15/97*............................... $ 100,000 100,598
Capital One Bank 8.33% due 2/10/97..................................... 575,000 577,380
Comdisco, Inc. 7.33% due 3/6/97........................................ 200,000 200,860
Comdisco, Inc. 9.75% due 1/15/97....................................... 275,000 276,172
First USA Bank 8.10% due 2/21/97....................................... 250,000 251,175
Tele-Communications, Inc. 7.00% due 8/4/97............................. 200,000 201,232
TIME DEPOSIT -- 1.1%
Cayman Island Time Deposit with State Street Bank & Trust Co.
2.75% due 12/02/96................................................... 417,000 417,000
-------------
TOTAL SHORT-TERM SECURITIES (cost $2,022,527).......................... 2,024,417
-------------
TOTAL INVESTMENTS --
(cost $35,678,831) 99.0% 36,837,950
Other assets less liabilities -- 1.0 369,457
----- -------------
NET ASSETS -- 100.0% $37,207,407
===== =============
</TABLE>
-----------------------------
* Resale restricted to qualified institutional buyers
(1) Consists of more than one class of securities traded together
as a unit; generally bonds with attached stocks or warrants
(2) Fair valued security; see Note 2
(3) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date
See Notes to Financial Statements
---------------------
15
<PAGE> 16
- ---------------------
SUNAMERICA SERIES TRUST
HIGH-YIELD BOND PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 96.3% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 5.8%
Automotive -- 0.8%
Am General Corp. 12.88% 2002.......................................... $1,000,000 $ 945,000
Retail -- 5.0%
E&S Holdings Corp. 10.38% 2006*....................................... 1,000,000 1,036,250
Finlay Fine Jewelry Corp. 10.63% 2003................................. 1,000,000 1,035,000
Specialty Retailers, Inc. 10.00% 2000................................. 2,000,000 2,050,000
Thrifty PayLess Holdings, Inc. 12.25% 2004............................ 1,300,000 1,521,000
------------
6,587,250
------------
CONSUMER STAPLES -- 3.7%
Food Retail -- 1.8%
Kash 'N Karry Food Stores, Inc. 11.50% 2003........................... 2,000,000 2,000,000
Food, Beverage & Tobacco -- 1.9%
Smith's Food & Drug Centers, Inc. 11.25% 2007......................... 2,000,000 2,180,000
------------
4,180,000
------------
ENERGY -- 3.2%
Energy Services -- 2.3%
DeepTech International, Inc. 12.00% 2000.............................. 500,000 527,500
Mesa Operating Co. zero coupon 2006(1)................................ 3,000,000 2,025,000
Energy Sources -- 0.9%
Flores & Rucks, Inc. 9.75% 2006....................................... 1,000,000 1,052,500
------------
3,605,000
------------
FINANCE -- 3.8%
Financial Services -- 3.8%
Dollar Financial Group, Inc. 10.88% 2006*............................. 2,000,000 2,027,500
Homeside, Inc. 11.25% 2003*........................................... 2,000,000 2,230,000
------------
4,257,500
------------
HEALTHCARE -- 9.9%
Health Services -- 8.5%
Abbey Healthcare Group, Inc. 9.50% 2002............................... 2,000,000 2,090,000
OrNda Healthcorp. 12.25% 2002......................................... 1,000,000 1,071,250
Quorum Health Group, Inc. 8.75% 2005.................................. 2,000,000 2,055,000
Tenet Healthcare Corp. 8.63% 2003..................................... 2,000,000 2,130,000
Tenet Healthcare Corp. 10.13% 2005.................................... 2,000,000 2,210,000
Medical Products -- 1.4%
Dade International, Inc. 11.13% 2006*................................. 1,500,000 1,620,000
------------
11,176,250
------------
INDUSTRIAL & COMMERCIAL -- 17.4%
Business Services -- 15.5%
Allied Waste North America, Inc. 10.25% 2006*......................... 2,000,000 2,042,500
Core Mark International, Inc. 11.38% 2003*............................ 1,000,000 1,016,250
Imed Corp. 9.75% 2006*................................................ 2,000,000 2,025,000
Iron Mountain, Inc. 10.13% 2006....................................... 1,000,000 1,055,000
Katz Corp. 12.75% 2002................................................ 1,000,000 1,116,250
Lifestyle Furnishings International Ltd. 10.88% 2006*................. 2,000,000 2,120,000
</TABLE>
- ---------------------
16
<PAGE> 17
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Business Services (continued)
Muzak L.P. 10.00% 2003................................................ $1,000,000 $ 1,011,250
Pillowtex Corp. 10.00% 2006*.......................................... 2,000,000 2,037,500
Printpack, Inc. 10.63% 2006*.......................................... 1,000,000 1,040,000
Rayovac Corp. 10.25% 2006*............................................ 2,000,000 2,045,000
Ryder TRS, Inc. 10.00% 2006*.......................................... 2,000,000 2,037,500
Multi-Industry -- 1.9%
International Semi-Tech Microelectronic, Inc. zero coupon 2003(1)..... 2,000,000 1,240,000
J.B. Poindexter & Co. 12.50% 2004..................................... 1,000,000 967,500
------------
19,753,750
------------
INFORMATION & ENTERTAINMENT -- 27.4%
Broadcasting & Media -- 11.1%
Jcac, Inc. 10.13% 2006................................................ 1,000,000 1,025,000
Kabelmedia Holding zero coupon 2006................................... 2,000,000 1,090,000
NWCG Holding Corp. zero coupon 1999................................... 3,000,000 2,490,000
Park Broadcasting, Inc. 11.75% 2004*.................................. 1,500,000 1,751,250
SFX Broadcasting, Inc. 10.75% 2006.................................... 2,000,000 2,100,000
Sinclair Broadcast Group, Inc. 10.00% 2005............................ 2,000,000 2,020,000
Universal Outdoor Holdings, Inc. 9.75% 2006........................... 2,000,000 2,040,000
Cable -- 11.9%
Bell Cablemedia PLC zero coupon 2005(1)............................... 1,750,000 1,373,750
Century Communications Corp. 11.88% 2003.............................. 2,000,000 2,135,000
Comcast UK Cable Partners Ltd. zero coupon 2007....................... 1,000,000 682,500
Diamond Cable Communications PLC zero coupon 2005(1).................. 1,000,000 697,500
Echostar Communications Corp. zero coupon 2004(1)..................... 1,000,000 810,000
Echostar Satellite Broadcasting Corp. zero coupon 2004(1)............. 1,250,000 950,000
International CableTel, Inc. zero coupon 2005(1)...................... 1,000,000 712,500
International CableTel, Inc. zero coupon 2006(1)...................... 1,000,000 640,000
Mettler Toledo, Inc. 9.75% 2006....................................... 1,000,000 1,045,000
Telewest PLC zero coupon 2007(1)...................................... 1,875,000 1,270,313
UIH Australia Pacific, Inc. zero coupon 2006(1)....................... 1,500,000 787,500
United International Holdings, Inc. zero coupon 1999(2)............... 2,250,000 1,586,250
Videotron Holdings PLC zero coupon 2005(1)............................ 1,000,000 787,500
Gaming -- 2.6%
Casino America, Inc. 12.50% 2003...................................... 1,000,000 970,000
Showboat, Inc. 13.00% 2009............................................ 1,000,000 1,095,000
Trump Atlantic City Associates 11.25% 2006............................ 1,000,000 945,000
Leisure & Tourism -- 1.8%
HMH Properties, Inc. 9.50% 2005....................................... 2,000,000 2,065,000
------------
31,069,063
------------
INFORMATION TECHNOLOGY -- 18.3%
Cellular -- 6.7%
Cellular Communications International, Inc. zero coupon 2000.......... 1,000,000 660,000
Cellular Communications International, Inc. zero coupon 2000(2)....... 2,000,000 1,375,000
Comcast Cellular Corp. zero coupon 2000............................... 1,500,000 1,080,000
Intercel, Inc. zero coupon 2006(1).................................... 1,000,000 607,500
Pricecellular Wireless Corp. zero coupon 2003(1)...................... 1,000,000 842,500
Pricecellular Wireless Corp. zero coupon 2001(1)...................... 1,000,000 985,000
Western Wireless Corp. 10.50% 2006.................................... 2,000,000 2,060,000
Computers & Business Equipment -- 1.9%
Twin Laboratories, Inc. 10.25% 2006................................... 1,000,000 1,041,875
Unisys Corp. 11.75% 2004.............................................. 1,000,000 1,045,000
</TABLE>
---------------------
17
<PAGE> 18
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Electronics -- 1.9%
Advanced Micro Devices, Inc. 11.00% 2003.............................. $2,000,000 $ 2,165,000
Paging -- 2.7%
Paging Network, Inc. 10.00% 2008*..................................... 2,000,000 1,997,500
Paging Network, Inc. 11.75% 2002...................................... 1,000,000 1,080,000
Telecommunications -- 5.1%
Hyperion Telecommunications, Inc. zero coupon 2003(1)*................ 2,500,000 1,393,750
MFS Communications, Inc. zero coupon 2006(1).......................... 1,000,000 725,000
PanAmSat, L.P. zero coupon 2003(1).................................... 2,500,000 2,300,000
Teleport Communications Group zero coupon 2007(1)..................... 2,000,000 1,355,000
------------
20,713,125
------------
MATERIALS -- 5.7%
Chemicals -- 0.9%
LaRoche Industries, Inc. 13.00% 2004.................................. 1,000,000 1,065,000
Forest Products -- 1.6%
American Pad & Paper Co. 13.00% 2005.................................. 650,000 757,250
Stone Container Corp. 11.88% 1998..................................... 1,000,000 1,065,000
Metals & Minerals -- 3.2%
Renco Metals, Inc. 11.50% 2003........................................ 2,000,000 2,100,000
WCI Steel, Inc. 10.00% 2004*.......................................... 1,500,000 1,511,250
------------
6,498,500
------------
UTILITIES -- 1.1%
Telephone -- 1.1%
Millicom International Cellular SA zero coupon 2006(1)................ 2,000,000 1,190,000
------------
TOTAL BONDS & NOTES (cost $104,171,085)............................... 109,030,438
------------
<CAPTION>
COMMON STOCK -- 0.0% SHARES
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER STAPLES -- 0.0%
Food, Beverage & Tobacco -- 0.0%
Smith's Food & Drug Centers, Inc. .................................... 1,505 45,526
------------
INFORMATION & ENTERTAINMENT -- 0.0%
Gaming -- 0.0%
Capital Gaming International, Inc.+ .................................. 40,000 1,875
------------
TOTAL COMMON STOCK (cost $156,260).................................... 47,401
------------
<CAPTION>
PREFERRED STOCK -- 1.0%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS -- 1.0%
Forest Products -- 1.0%
SDW Holdings Corp. 14.00% (cost $950,530)*(3)......................... 37,000 1,091,500
------------
<CAPTION>
WARRANTS -- 0.1%+
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER STAPLES -- 0.0%
Household Products -- 0.0%
Chattem, Inc. 6/17/99................................................. 1,000 3,375
------------
</TABLE>
- ---------------------
18
<PAGE> 19
<TABLE>
WARRANTS (continued) SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 0.0%
Cable -- 0.0%
United International Holdings, Inc. 11/15/99.......................... 1,750 $ 4,375
Gaming -- 0.0%
Fitzgerald Gaming Corp.*(3) 3/15/99................................... 2,000 20,000
------------
24,375
------------
INFORMATION TECHNOLOGY -- 0.1%
Telecommunications -- 0.1%
Hyperion Telecommunications, Inc.* 4/15/01............................ 2,500 68,750
------------
MATERIALS -- 0.0%
Forest Products -- 0.0%
SDW Holdings Corp.*(3) 12/15/06....................................... 3,700 48,100
------------
TOTAL WARRANTS (cost $142,784)........................................ 144,600
------------
TOTAL INVESTMENT SECURITIES (cost $105,420,658)....................... 110,313,939
------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 3.2% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 3.2%
Joint Repurchase Agreement Account (Note 3)
(cost $3,610,000)................................................... $3,610,000 3,610,000
------------
TOTAL INVESTMENTS --
(cost $109,030,658) 100.6% 113,923,939
Liabilities in excess of other assets -- (0.6) (694,846)
------ ------------
NET ASSETS -- 100.0% $113,229,093
============
------
------
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
(1) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date
(2) Consists of more than one class of securities traded together
as a unit; generally bonds with attached stocks or warrants
(3) Fair valued security; see Note 2
See Notes to Financial Statements
---------------------
19
<PAGE> 20
- ---------------------
SUNAMERICA SERIES TRUST
WORLDWIDE HIGH INCOME
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 85.0% AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 3.3%
Housing -- 2.7%
Companhia Brasileira de Petroleo Ipiranga 12.50% 1997............ $ 800,000 $ 816,000
Companhia Brasileira de Petroleo Ipiranga 12.50% 1997*........... 500,000 510,000
Retail -- 0.6%
Cole National Group, Inc. 9.88% 2006*............................ 170,000 172,550
K-Mart Corp. 8.38% 2022.......................................... 135,000 109,350
------------
1,607,900
------------
CONSUMER STAPLES 0.9%
Food, Beverage & Tobacco -- 0.1%
International Home Foods, Inc. 10.38% 2006*...................... 50,000 51,375
Household Products -- 0.8%
Revlon Worldwide Corp. zero coupon 1998.......................... 445,000 384,369
------------
435,744
------------
ENERGY -- 0.8%
Energy Services -- 0.2%
Parker Drilling Corp. 9.75% 2006*................................ 80,000 82,900
Energy Sources -- 0.6%
Flores & Rucks, Inc. 9.75% 2006.................................. 115,000 121,038
Nuevo Energy Co. 9.50% 2006...................................... 175,000 182,000
------------
385,938
------------
FINANCE -- 7.6%
Financial Services -- 7.5%
Alps Series 96-1 12.75% 2006*.................................... 150,000 155,437
Dillon Read Structured Finance Corp. 6.66% 2010.................. 95,164 77,294
Dillon Read Structured Finance Corp. 7.60% 2007.................. 291,263 262,218
First Nationwide Escrow Corp. 10.63% 2003*....................... 65,000 69,550
First Nationwide Holdings, Inc. 9.13% 2003*...................... 90,000 90,900
Homeside, Inc. 11.25% 2003*...................................... 40,000 44,600
Russia Federation Ministry Finance GDR 3.00% 2003*............... 4,800,000 2,916,000
Stone Container Finance Co. 11.50% 2006*......................... 80,000 81,600
Insurance -- 0.1%
Home Holdings, Inc. 8.63% 2003(1)................................ 95,000 26,600
------------
3,724,199
------------
INDUSTRIAL & COMMERCIAL -- 5.9%
Aerospace & Military Technology -- 0.3%
Jet Equipment Trust 11.79% 2013*................................. 100,000 123,060
Business Services -- 2.9%
ISP Holdings, Inc. 9.00% 2003*................................... 165,000 168,506
Norcal Waste Systems, Inc. 12.75% 2005........................... 215,000 236,500
Tevecap SA 12.63% 2004........................................... 1,000,000 1,026,250
Electrical Equipment -- 0.2%
Digital Equipment Corp. 8.63% 2012............................... 85,000 84,945
</TABLE>
- ---------------------
20
<PAGE> 21
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Multi-Industry -- 2.0%
Iochpe Maxion SA 12.38% 2002..................................... $ 500,000 $ 487,500
Iochpe Maxion SA 12.38% 2002*.................................... 500,000 487,500
Transportation -- 0.5%
Southland Corp. 5.00% 2003....................................... 295,000 242,638
------------
2,856,899
------------
INFORMATION & ENTERTAINMENT -- 7.3%
Broadcasting & Media -- 2.6%
Comcast Corp. 9.38% 2005......................................... 255,000 263,925
Grupo Televisa SA de CV zero coupon 2008(2)...................... 950,000 621,062
Marvel Parent Holdings, Inc. zero coupon 1998.................... 150,000 22,500
Viacom, Inc. 8.00% 2006.......................................... 385,000 373,423
Cable -- 2.8%
Cablevision Systems Corp. 9.25% 2005............................. 150,000 146,625
Cablevision Systems Corp. 9.88% 2006............................. 205,000 206,025
Echostar Satellite Broadcasting Corp. zero coupon 2004*(2)....... 355,000 269,800
Marcus Cable Co. L.P. zero coupon 2005(2)........................ 285,000 195,225
Rogers Cablesystems Ltd. 10.00% 2005(2).......................... 295,000 314,913
Telewest PLC zero coupon 2007(2)................................. 385,000 260,838
Gaming -- 0.5%
Grand Casino, Inc. 10.13% 2003................................... 180,000 181,350
Station Casinos, Inc. 9.63% 2003................................. 70,000 68,250
Leisure & Tourism -- 1.4%
Boyd Gaming Corp. 9.25% 2003..................................... 140,000 136,675
Courtyard Marriott Ltd. 10.75% 2008.............................. 175,000 184,844
Host Marriott Corp. Acquisition Properties, Inc. 9.00% 2007...... 180,000 180,000
Host Marriott Travel Plazas 9.50% 2005........................... 180,000 185,400
------------
3,610,855
------------
INFORMATION TECHNOLOGY -- 7.3%
Cellular -- 0.8%
Comcast Cellular Corp. zero coupon 2000.......................... 390,000 281,775
Rogers Communications, Inc. 9.13% 2006........................... 90,000 89,100
Electronics -- 0.4%
Advanced Micro Devices, Inc. 11.00% 2003......................... 200,000 217,000
Paging -- 0.4%
Paging Network, Inc. 10.00% 2008*................................ 100,000 100,000
Paging Network, Inc. 10.13% 2007................................. 80,000 80,200
Telecommunications -- 5.7%
Brooks Fiber Properties, Inc. zero coupon 2006(2)................ 325,000 212,875
Brooks Fiber Properties, Inc. zero coupon 2006*(2)............... 110,000 69,437
Comtel Brasileira Ltd. 10.75% 2004*.............................. 1,050,000 1,085,700
Dial Callable Communications, Inc. zero coupon 2004(2)........... 600,000 417,000
IXC Communications, Inc. 12.50% 2005............................. 170,000 183,600
Lenfest Communications, Inc. 8.38% 2005.......................... 310,000 299,925
MFS Communications, Inc. zero coupon 2006(2)..................... 505,000 366,125
TCI Communications, Inc. 7.88% 2026.............................. 205,000 182,803
------------
3,585,540
------------
MATERIALS -- 6.4%
Forest Products -- 2.7%
Gaylord Container Corp. 11.50% 2001.............................. 250,000 266,250
Gaylord Container Corp. 12.75% 2005.............................. 40,000 43,800
Grupo International Durango SA de CV 12.63% 2003................. 500,000 541,250
</TABLE>
---------------------
21
<PAGE> 22
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Forest Products (continued)
Owens Illinois, Inc. 11.00% 2003................................. $ 190,000 $ 210,188
S.D. Warren Co. 12.00% 2004...................................... 135,000 141,750
TLC Beatrice International Holdings, Inc. 11.50% 2005............ 130,000 136,662
Metals & Minerals -- 3.7%
Tolmex SA de CV 8.38% 2003....................................... 2,000,000 1,810,000
United States Can Corp. 10.13% 2006.............................. 25,000 26,125
---------------
3,176,025
---------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 38.0%
Foreign Government -- 38.0%
Federative Republic of Brazil 4.76% 2014(3)(4)................... 2,478,082 1,809,000
Jamaica Government Bonds 12.00% 1999............................. 2,000,000 2,000,000
Republic of Argentina 8.38% 2003................................. 1,500,000 1,400,625
Republic of Argentina 11.00% 2006................................ 1,000,000 1,043,750
Republic of Bulgaria 2.25% 2012(3)............................... 2,500,000 917,175
Republic of Bulgaria. 6.69% 2024(3).............................. 1,000,000 544,370
Republic of Ecuador 6.50% 2015(3)(4)............................. 2,273,389 1,369,716
Republic of Panama 3.50% 2014(3)................................. 1,250,000 854,688
Republic of Philippines 6.44% 2009(3)............................ 1,600,000 1,552,000
Republic of Venezuela (Oil Warrants Attached) 6.44% 2020(3)...... 500,000 403,125
Republic of Venezuela 6.63% 2007(3).............................. 4,250,000 3,708,125
United Mexican States 11.38% 2016................................ 3,000,000 3,108,750
---------------
18,711,324
---------------
UTILITIES -- 7.5%
Electric Utilities -- 3.6%
Cleveland Electric Illuminating Co. 8.38% 2011................... 25,000 24,136
Cleveland Electric Illuminating Co. 9.50% 2005................... 250,000 270,363
Hidroelectrica Piedra Aguila 10.63% 2001*........................ 1,300,000 1,345,500
Midland Cogeneration 10.33% 2002................................. 104,735 111,281
Midland Cogeneration, Series C-91 10.33% 2002.................... 18,012 19,138
Midland Funding Corp. 11.75% 2005................................ 40,000 44,453
Gas & Pipeline Utilities -- 3.3%
Bridas Corp. 12.50% 1999......................................... 1,500,000 1,599,375
Telephone -- 0.6%
Occidente Y Caribe Celular SA zero coupon 2004*(2)(5)............ 400,000 203,000
Philippine Long Distance Telephone 9.25% 2006.................... 100,000 108,937
---------------
3,726,183
---------------
TOTAL BONDS & NOTES (cost $38,907,783)........................... 41,820,607
---------------
<CAPTION>
PREFERRED STOCK -- 1.4% SHARES
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 0.2%
Medical Products -- 0.2%
Fresenius Medical Care........................................... 90 91,602
---------------
INFORMATION & ENTERTAINMENT -- 1.2%
Broadcasting & Media -- 1.2%
TCI Pacific Communications, Inc. 5.00%........................... 1,830 160,811
Time Warner, Inc. Series M 10.25%................................ 423 461,070
---------------
621,881
---------------
TOTAL PREFERRED STOCK (cost $675,514)............................ 713,483
---------------
</TABLE>
- ---------------------
22
<PAGE> 23
<TABLE>
<CAPTION>
PRINCIPAL
LOAN PARTICIPATION AGREEMENT -- 1.0% AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
LOAN PARTICIPATION AGREEMENT -- 1.0%
Russia BFEA Loan Agreement+ (cost $485,250)...................... $ 600,000 $ 470,250
---------------
TOTAL INVESTMENT SECURITIES (cost $40,068,547)................... 43,004,340
---------------
<CAPTION>
SHORT-TERM SECURITIES--3.4%
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 3.4%
Banamex Pagare 14.52% due 10/23/97............................... MXN 6,446,250 648,875
Empresas La Moderna 10.25% due 11/12/97.......................... 1,000,000 1,023,750
---------------
TOTAL SHORT-TERM SECURITIES (cost $1,707,090).................... 1,672,625
---------------
<CAPTION>
REPURCHASE AGREEMENT -- 8.5%
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 8.5%
Agreement with State Street Bank & Trust Co., bearing interest of
4.00% dated 11/29/96 to be repurchased 12/02/96 in the amount
of $4,208,402 and collateralized by $4,225,000 U.S. Treasury
Notes 6.00% due 9/30/98 (cost $4,207,000)...................... $ 4,207,000 4,207,000
---------------
TOTAL INVESTMENTS --
(cost $45,982,637) 99.3% 48,883,965
Other assets less liabilities -- 0.7 320,532
------ ---------------
NET ASSETS -- 100.0% $ 49,204,497
====== =============
</TABLE>
-----------------------------
+ Non-income producing security; security in default
* Resale restricted to qualified institutional buyers
(1) Fair valued security; see Note 2
(2) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date
(3) Variable rate security; rate as of November 30, 1996
(4) A portion of the coupon interest is received in cash and a
portion is capitalized in the principal of the security
(5) Consists of more than one class of securities traded together
as a unit; generally bonds with attached stocks or warrants
GDR -- Global Depository Receipt
MXN Mexican Peso
Allocation of investments as a percentage of net assets by country
as of November 30, 1996:
<TABLE>
<S> <C>
United States 27.8%
Mexico 15.8
Brazil 12.6
Argentina 11.0
Venezuela 8.4
Russia 6.8
Jamaica 4.1
Philippines 3.4
Bulgaria 3.0
Ecuador 2.8
Panama 1.7
Canada 1.0
United Kingdom 0.5
Colombia 0.4
----
99.3%
====
</TABLE>
See Notes to Financial Statements
---------------------
23
<PAGE> 24
- ---------------------
SUNAMERICA SERIES TRUST
SUNAMERICA BALANCED
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 71.1% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 5.2%
Apparel & Textiles -- 1.1%
NIKE, Inc. Class B .................................................... 2,000 $ 113,750
Automotive -- 2.0%
General Motors Corp. .................................................. 2,000 115,250
Harley-Davidson, Inc. ................................................. 2,000 88,750
Retail -- 2.1%
Federated Department Stores, Inc.+..................................... 1,600 54,600
Payless Shoesource, Inc.+.............................................. 2,000 78,250
Saks Holdings, Inc. ................................................... 300 9,750
Wal-Mart Stores, Inc. ................................................. 3,000 76,500
-------------
536,850
-------------
CONSUMER STAPLES -- 4.9%
Food, Beverage & Tobacco -- 2.9%
Consolidated Cigar Holdings, Inc.+..................................... 7,000 170,625
Seagram Co., Ltd. ..................................................... 3,000 122,625
Household Products -- 2.0%
Nu Skin Asia Pacific, Inc.+............................................ 500 14,812
Samsonite Corp. ....................................................... 5,000 189,375
-------------
497,437
-------------
ENERGY -- 3.9%
Energy Services -- 2.1%
Benton Oil & Gas Co.+.................................................. 2,000 51,000
Burlington Resources, Inc. ............................................ 1,100 58,300
Mobil Corp. ........................................................... 450 54,450
Royal Dutch Petroleum Co. ADR.......................................... 300 50,963
Energy Sources -- 1.8%
Enron Corp. ........................................................... 2,000 91,500
McDermott International, Inc. ......................................... 5,000 88,750
-------------
394,963
-------------
FINANCE -- 9.5%
Banks -- 2.6%
Chase Manhattan Corp. ................................................. 400 37,800
Fifth Third Bancorp.................................................... 2,000 140,000
Summit Bancorp......................................................... 2,000 89,750
Financial Services -- 4.0%
Alex Brown, Inc. ...................................................... 750 45,094
Capital One Financial Corp. ........................................... 3,000 108,375
Dean Witter, Discover & Co. ........................................... 570 38,974
Federal National Mortgage Association.................................. 3,000 123,750
Morgan Stanley Group, Inc. ............................................ 1,500 90,187
</TABLE>
- ---------------------
24
<PAGE> 25
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- (continued)
Insurance -- 2.9%
Aetna, Inc. ........................................................... 529 $ 38,154
Allstate Corp. ........................................................ 3,000 180,750
Equitable Cos., Inc. .................................................. 3,000 74,250
-------------
967,084
-------------
HEALTHCARE -- 13.4%
Drugs -- 8.2%
American Home Products Corp. .......................................... 1,500 96,375
Biogen, Inc.+.......................................................... 2,000 76,500
Bristol-Myers Squibb Co. .............................................. 1,000 113,750
Glaxo Wellcome PLC ADR................................................. 3,000 98,625
Ligand Pharmaceuticals, Inc.+.......................................... 10,000 120,625
Lilly (Eli) & Co. ..................................................... 1,000 76,500
Merck & Co., Inc. ..................................................... 1,000 83,000
Schering-Plough Corp. ................................................. 750 53,437
Teva Pharmaceutical Industries Ltd. ADR................................ 950 43,938
Warner-Lambert Co. .................................................... 1,000 71,500
Health Services -- 1.0%
Advanced Health Corp.+................................................. 5,000 71,250
Chiron Corp.+.......................................................... 1,400 27,125
Medical Products -- 4.2%
Allegiance Corp. ...................................................... 600 13,575
Allergan, Inc. ........................................................ 2,000 64,250
Baxter International, Inc. ............................................ 3,000 127,500
Johnson & Johnson Co. ................................................. 1,000 53,125
Medtronic, Inc. ....................................................... 1,000 66,125
Nitinol Medical Technologies, Inc.+.................................... 5,000 54,375
Pfizer, Inc. .......................................................... 600 53,775
-------------
1,365,350
-------------
INDUSTRIAL & COMMERCIAL -- 6.6%
Aerospace & Military Technology -- 3.3%
Boeing Co. ............................................................ 1,000 99,375
United Technologies Corp. ............................................. 1,700 238,425
Business Services -- 0.4%
Forrester Research, Inc.+.............................................. 500 10,687
NCO Group, Inc+........................................................ 2,000 34,250
Electrical Equipment -- 0.4%
General Electric Co. .................................................. 400 41,600
Machinery -- 1.2%
Caterpillar, Inc. ..................................................... 1,000 79,125
Deere & Co. ........................................................... 1,000 44,625
Multi-Industry -- 1.3%
Rockwell International Corp. .......................................... 2,000 128,500
-------------
676,587
-------------
INFORMATION & ENTERTAINMENT -- 3.5%
Broadcasting & Media -- 1.2%
Cox Radio, Inc.+....................................................... 1,000 17,500
Mecklermedia Corp.+.................................................... 5,000 101,250
</TABLE>
---------------------
25
<PAGE> 26
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- (continued)
Leisure & Tourism -- 2.3%
Callaway Golf Co. ..................................................... 2,000 $ 60,750
Carnival Corp. ........................................................ 3,000 94,875
MGM Grand, Inc.+....................................................... 1,000 38,625
Sun International Hotels Ltd.+......................................... 875 43,422
-------------
356,422
-------------
INFORMATION TECHNOLOGY -- 14.0%
Communication Equipment -- 0.9%
Ericsson (L.M.) Telephone Co. ADR...................................... 1,870 57,736
Lason Holdings, Inc. .................................................. 2,000 39,000
Computers & Business Equipment -- 2.3%
Hewlett-Packard Co. ................................................... 800 43,100
International Business Machines Corp. ................................. 1,000 159,375
International Network Services+........................................ 1,000 32,000
Electronics -- 3.9%
Cymer, Inc.+........................................................... 5,000 166,250
Intel Corp. ........................................................... 1,000 126,875
Nokia Corp. ADR........................................................ 1,000 56,125
Perkin-Elmer Corp. .................................................... 800 49,300
Software -- 3.4%
Cisco Systems, Inc.+................................................... 820 55,658
Computer Associates International, Inc. ............................... 2,000 131,500
Microsoft Corp.+....................................................... 1,000 156,875
Telecommunications -- 3.5%
Deutsche Telekom AG ADR................................................ 2,000 42,750
LCC International, Inc.+............................................... 1,000 16,000
Lucent Technologies, Inc. ............................................. 3,324 170,355
Orckit Communications, Ltd.+........................................... 1,000 11,250
WorldCom, Inc.+........................................................ 5,000 115,625
-------------
1,429,774
-------------
MATERIALS -- 8.6%
Chemicals -- 0.8%
Olin Corp. ............................................................ 2,000 79,750
Metals & Minerals -- 1.4%
Dal-Tile International, Inc.+.......................................... 7,000 148,750
Paper Products -- 6.4%
Champion International Corp. .......................................... 2,500 107,500
Georgia-Pacific Corp. ................................................. 2,000 145,500
International Paper Co. ............................................... 2,000 85,000
Union Camp Corp. ...................................................... 3,000 147,375
Willamette Industries, Inc. ........................................... 2,500 170,000
-------------
883,875
-------------
REAL ESTATE -- 0.6%
Real Estate Investment Trusts -- 0.6%
Innkeepers USA Trust................................................... 5,000 62,500
-------------
UTILITIES -- 0.9%
Telephone -- 0.9%
AT&T Corp. ............................................................ 1,000 39,250
</TABLE>
- ---------------------
26
<PAGE> 27
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Telephone -- (continued)
GTE Corp. ............................................................. 1,200 $ 53,850
-------------
93,100
-------------
TOTAL COMMON STOCK (cost $6,463,041)................................... 7,263,942
-------------
PREFERRED STOCK -- 0.7%
----------------------------------------------------------------------------------------------------
FINANCE -- 0.0%
Insurance -- 0.0%
Aetna, Inc. 6.25%...................................................... 59 4,381
INFORMATION & ENTERTAINMENT -- 0.7%
Broadcasting & Media -- 0.7%
Multicanal Participacoes SA ADR........................................ 5,000 70,625
-------------
TOTAL PREFERRED STOCK (cost $81,978)................................... 75,006
-------------
PRINCIPAL
BONDS & NOTES -- 10.2% AMOUNT
----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT -- 10.2%
U.S. Treasury Notes -- 10.2%
United States Treasury Notes 6.50% 2001................................ $ 250,000 256,603
United States Treasury Notes 6.50% 2006................................ 250,000 258,202
United States Treasury Notes 6.88% 2006................................ 500,000 528,435
-------------
TOTAL BONDS & NOTES (cost $1,014,361).................................. 1,043,240
-------------
TOTAL INVESTMENT SECURITIES (cost $7,559,380).......................... 8,382,188
-------------
REPURCHASE AGREEMENT -- 15.7%
----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 15.7%
Joint Repurchase Agreement Account (Note 3)
(cost $1,605,000).................................................... 1,605,000 1,605,000
-------------
TOTAL INVESTMENTS --
(cost $9,164,380) 97.7% 9,987,188
Other assets less liabilities -- 2.3 236,606
------- -------------
NET ASSETS -- 100.0% $10,223,794
===== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
27
<PAGE> 28
- ---------------------
SUNAMERICA SERIES TRUST
BALANCED/PHOENIX INVESTMENT
COUNSEL PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 57.3% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 5.9%
Apparel & Textiles -- 1.0%
NIKE, Inc. Class B .................................................... 12,000 $ 682,500
Automotive -- 0.4%
Lear Corp.+............................................................ 8,100 290,588
Retail -- 4.5%
CVS Corp. ............................................................. 12,800 526,400
Home Depot, Inc. ...................................................... 10,000 521,250
Office Depot, Inc.+.................................................... 2,000 39,000
PetSmart, Inc.+........................................................ 15,400 392,700
Safeway, Inc.+......................................................... 16,500 670,312
Staples, Inc. +........................................................ 20,000 395,000
TJX Cos., Inc. ........................................................ 13,300 600,163
------------
4,117,913
------------
CONSUMER STAPLES -- 4.8%
Food, Beverage & Tobacco -- 2.3%
Campbell Soup Co. ..................................................... 4,000 330,500
Coca-Cola Co. ......................................................... 12,000 613,500
PepsiCo, Inc. ......................................................... 22,000 657,250
Household Products -- 2.5%
Colgate-Palmolive Co. ................................................. 4,000 370,500
Gillette Co. .......................................................... 8,700 641,625
Procter & Gamble Co. .................................................. 7,000 761,250
------------
3,374,625
------------
ENERGY -- 6.8%
Energy Services -- 4.1%
Baker Hughes, Inc. .................................................... 16,600 607,975
British Petroleum Co. PLC ADR.......................................... 2,000 277,500
Chevron Corp. ......................................................... 10,000 670,000
Halliburton Co. ....................................................... 5,000 301,250
Royal Dutch Petroleum Co. ADR.......................................... 4,000 679,500
Schlumberger Ltd. ..................................................... 3,000 312,000
Energy Sources -- 2.7%
Anadarko Petroleum Corp. .............................................. 3,000 200,625
Apache Corp. .......................................................... 9,000 327,375
Enron Oil & Gas Co. ................................................... 10,000 266,250
ENSCO International, Inc.+............................................. 12,500 548,437
Noble Affiliates, Inc. ................................................ 12,000 565,500
------------
4,756,412
------------
FINANCE -- 9.0%
Banks -- 1.9%
BankAmerica Corp. ..................................................... 4,400 453,200
Chase Manhattan Corp. ................................................. 4,000 378,000
Citicorp............................................................... 3,500 382,375
Mellon Bank Corp. ..................................................... 1,850 133,663
</TABLE>
- ---------------------
28
<PAGE> 29
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services -- 3.9%
Donaldson Lufkin & Jenrette, Inc. ..................................... 2,500 $ 89,063
First Data Corp. ...................................................... 14,000 558,250
First USA, Inc. ....................................................... 21,400 703,525
MBNA Corp. ............................................................ 5,000 201,875
Price (T. Rowe) Associates, Inc. ...................................... 9,450 341,381
Travelers Group, Inc. ................................................. 17,867 804,000
Insurance -- 3.2%
Allstate Corp. ........................................................ 13,500 813,375
American International Group, Inc. .................................... 4,000 460,000
Conseco, Inc. ......................................................... 7,000 391,125
Marsh & McLennan Cos. ................................................. 3,000 340,125
MGIC Investment Corp. ................................................. 3,500 262,062
------------
6,312,019
------------
HEALTHCARE -- 7.3%
Drugs -- 4.1%
American Home Products Corp. .......................................... 7,000 449,750
Amgen, Inc.+........................................................... 5,000 304,375
Bristol-Myers Squibb Co. .............................................. 3,000 341,250
Merck & Co., Inc. ..................................................... 10,000 830,000
Pfizer, Inc. .......................................................... 10,000 896,250
Health Services -- 1.0%
Columbia/HCA Healthcare Corp. ......................................... 18,000 720,000
Medical Products -- 2.2%
Abbott Laboratories, Inc. ............................................. 2,500 139,375
Boston Scientific Corp.+............................................... 6,000 350,250
Johnson & Johnson Co. ................................................. 6,000 318,750
Medtronic, Inc. ....................................................... 11,200 740,600
------------
5,090,600
------------
INDUSTRIAL & COMMERCIAL -- 8.7%
Aerospace & Military Technology -- 2.5%
AlliedSignal, Inc. .................................................... 5,000 366,250
Boeing Co. ............................................................ 7,000 695,625
United Technologies Corp. ............................................. 5,000 701,250
Business Services -- 2.1%
Cognizant Corp.+....................................................... 12,000 414,000
Corrections Corporation America+....................................... 10,000 248,750
Philip Environmental, Inc.+............................................ 10,000 130,000
Republic Industries, Inc.+............................................. 5,500 183,563
USA Waste Services, Inc.+.............................................. 14,690 473,752
Electrical Equipment -- 2.3%
General Electric Co. .................................................. 14,000 1,456,000
Westinghouse Electric Corp. ........................................... 10,000 187,500
Machinery -- 1.2%
Deere & Co. ........................................................... 9,000 401,625
Dover Corp. ........................................................... 8,100 432,337
Transportation -- 0.6%
Tidewater, Inc. ....................................................... 9,000 393,750
------------
6,084,402
------------
INFORMATION & ENTERTAINMENT -- 1.8%
Broadcasting & Media -- 0.2%
New York Times Co. Class A ............................................ 4,000 149,500
</TABLE>
---------------------
29
<PAGE> 30
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT (continued)
Leisure & Tourism -- 1.6%
Disney (Walt) Co. ..................................................... 5,300 $ 390,875
HFS, Inc.+............................................................. 1,300 84,175
Hilton Hotels Corp. ................................................... 10,000 292,500
Marriott International, Inc. .......................................... 7,000 390,250
------------
1,307,300
------------
INFORMATION TECHNOLOGY -- 10.6%
Computers & Business Equipment -- 4.3%
3Com Corp.+............................................................ 10,000 751,250
Honeywell, Inc. ....................................................... 6,000 411,750
International Business Machines Corp. ................................. 7,500 1,195,312
Sun Microsystems, Inc.+................................................ 11,000 640,750
Electronics -- 2.0%
Intel Corp. ........................................................... 8,500 1,078,438
Micron Technology, Inc. ............................................... 4,000 132,500
Newbridge Networks Corp.+.............................................. 7,400 220,150
Software -- 4.1%
Cisco Systems, Inc.+ .................................................. 20,000 1,357,500
Computer Associates International, Inc. ............................... 10,500 690,375
GT Interactive Software Corp.+......................................... 7,000 82,250
Oracle Systems Corp.+.................................................. 15,000 735,000
Telecommunications -- 0.2%
Deutsche Telekom ADR+.................................................. 5,800 123,975
------------
7,419,250
------------
MATERIALS -- 1.4%
Chemicals -- 1.4%
duPont (E.I.) de Nemours & Co. ........................................ 2,000 188,500
Monsanto Co. .......................................................... 20,000 795,000
------------
983,500
------------
UTILITIES -- 1.0%
Gas & Pipeline Utilities -- 1.0%
Consolidated Natural Gas Co. .......................................... 5,300 302,763
Transocean Offshore, Inc. ............................................. 6,250 376,562
------------
679,325
------------
TOTAL COMMON STOCK (cost $34,817,817).................................. 40,125,346
------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 35.6% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 4.9%
Financial Services -- 4.9%
Airplane Pass Through Trust 10.88% 2019................................ $ 100,000 111,500
Astra Overseas Finance BV 8.75% 2003*.................................. 115,000 116,725
CS First Boston Mortgage Securities Corp., 7.18% 2027.................. 300,000 302,250
DLJ Mortgage Acceptance Corp. 7.58% 2028*.............................. 100,000 105,078
Fleetwood Credit Grantor Trust 6.90% 2012.............................. 96,278 98,016
GE Capital Mortgage Services, Inc. 7.25% 2026(1)....................... 298,675 295,259
Merrill Lynch Mortgage Investors, Inc. 7.15% 2025...................... 250,000 252,695
Merrill Lynch Mortgage Investors, Inc. 7.42% 2026...................... 100,000 103,086
Nationslink Funding Corp., 7.69% 2005.................................. 250,000 262,148
Residential Asset Securitization Trust 8.00% 2026(1)................... 293,755 302,146
Residential Funding Mortgage Securities 6.75% 2011(1).................. 292,370 284,695
Residential Funding Mortgage Securities 7.10% 2026..................... 200,000 195,625
</TABLE>
- ---------------------
30
<PAGE> 31
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Residential Funding Mortgage Securities 7.25% 2026..................... $ 298,105 $ 295,310
Resolution Trust Corp. 6.80% 2027...................................... 192,469 189,852
Structured Asset Securities Corp. 6.53% 2028........................... 100,000 99,016
Structured Asset Securities Corp. 7.00% 2026(1)........................ 300,000 299,438
Structured Asset Securities Corp. 7.38% 2024........................... 140,000 141,028
------------
3,453,867
------------
INFORMATION TECHNOLOGY -- 0.3%
Electronics -- 0.3%
ADT Operations, Inc. zero coupon 2010.................................. 400,000 236,500
------------
MATERIALS -- 0.1%
Forest Products -- 0.1%
Buckeye Cellulose Corp. 9.25% 2008..................................... 100,000 103,000
------------
MUNICIPAL BONDS -- 1.3%
Municipal Bonds -- 1.3%
Dade County Florida Educational Facilities Authority Revenue 5.75%
2020................................................................. 40,000 40,884
Kern County California Pension Obligation 7.26% 2014................... 50,000 51,506
Long Beach California Pension Obligation 6.87% 2006.................... 30,000 30,378
Miami Beach Florida Special Obligation 8.60% 2021...................... 100,000 110,035
Newport News 7.05% 2025................................................ 250,000 244,298
Orange County California Pension Obligation 7.62% 2008................. 160,000 169,811
San Bernardino County California Financing Authority 6.87% 2008........ 15,000 15,251
San Bernardino County California Financing Authority 6.94% 2009........ 35,000 35,616
University Miami Florida Exchange Revenue 7.65% 2020................... 145,000 146,950
Ventura County California Pension Obligation 6.54% 2005................ 30,000 29,601
------------
874,330
------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 1.3%
Foreign Government -- 1.3%
Federative Republic of Brazil 5.00% 2024(2)............................ 150,000 95,437
Federative Republic of Brazil 6.50% 2024(2)............................ 150,000 114,000
Republic of Argentina 5.25% 2023(2).................................... 250,000 157,500
Republic of Argentina 6.38% 2023(2).................................... 200,000 151,750
Republic of Colombia 9.00% 1997........................................ 300,000 303,000
United Mexican States 7.56% 2001*...................................... 100,000 100,163
------------
921,850
------------
REAL ESTATE -- 0.4%
Real Estate Companies -- 0.4%
Green Tree Financial Corp. 7.40% 2026.................................. 125,000 128,398
Green Tree Financial Corp. 7.60% 2027.................................. 125,000 127,217
------------
255,615
------------
U.S. GOVERNMENT & AGENCIES -- 27.3%
U.S. Government & Agencies -- 27.3%
Government National Mortgage Association 6.50% 2023.................... 271,860 265,914
Government National Mortgage Association 6.50% 2026.................... 336,804 327,434
United States Treasury Bonds 6.00% 2026................................ 335,000 315,895
United States Treasury Bonds 7.63% 2025................................ 150,000 172,429
United States Treasury Notes 5.75% 2000................................ 350,000 349,563
United States Treasury Notes 5.88% 2001................................ 5,800,000 5,809,976
United States Treasury Notes 6.50% 2005................................ 1,450,000 1,493,949
United States Treasury Notes 6.50% 2006................................ 6,695,000 6,914,663
United States Treasury Notes 6.75% 2000................................ 1,200,000 1,236,564
United States Treasury Notes 6.88% 2000................................ 450,000 465,327
</TABLE>
---------------------
31
<PAGE> 32
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT & AGENCIES (continued)
United States Treasury Notes 7.13% 2000................................ $ 150,000 $ 156,093
United States Treasury Notes 7.50% 2005................................ 850,000 930,087
United States Treasury Notes 7.88% 2004................................ 600,000 669,750
------------
19,107,644
------------
TOTAL BONDS & NOTES (cost $24,394,080)................................. 24,952,806
------------
TOTAL INVESTMENT SECURITIES (cost $59,211,897)......................... 65,078,152
------------
SHORT-TERM SECURITIES -- 15.0%
----------------------------------------------------------------------------------------------------
CORPORATE SHORT-TERM NOTES -- 13.2%
Abbott Labatories 5.25% due 12/04/96................................... 1,975,000 1,974,136
AlliedSignal, Inc. 5.25% due 12/02/96.................................. 1,500,000 1,499,781
Assets Securitization Cooperative 5.27% due 12/05/96................... 550,000 549,678
Ciesco L.P. 5.25% due 12/02/96......................................... 220,000 219,968
Donnelley (R.R.) & Sons Co. 5.27% due 12/09/96......................... 1,000,000 998,829
General Electric Co. 5.28% due 1/08/97................................. 1,045,000 1,039,176
General Reinsurance Corp. 5.27% due 12/24/96........................... 1,000,000 996,633
Kimberly-Clark Corp. 5.24% due 12/17/96................................ 300,000 299,301
McKenna Triangle National Corp. 5.26% due 12/19/96..................... 645,000 643,304
Receivables Capital Corp. 5.29% due 12/02/96........................... 1,000,000 999,853
------------
9,220,659
------------
FEDERAL AGENCY OBLIGATIONS -- 1.5%
Federal Home Loan Mortgage Discount Notes 5.70% due 12/02/96........... 135,000 134,979
Federal National Mortgage Association 5.23% due 12/20/96............... 920,000 917,460
------------
1,052,439
------------
U.S. GOVERNMENT -- 0.3%
United States Treasury Bills 4.86% due 2/06/97......................... 210,000 207,975
------------
TOTAL SHORT-TERM SECURITIES (cost $10,481,199)......................... 10,481,073
------------
TOTAL INVESTMENTS --
(cost $69,693,096) 107.9% 75,559,225
Liabilities in excess of other assets -- (7.9) (5,538,667)
------- ------------
NET ASSETS -- 100.0% $70,020,558
============
-------
-------
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
(1) Fair valued security; see Note 2
(2) Variable rate securities; rate as of November 30, 1996
ADR -- American Depository Receipt
See Notes to Financial Statements
- ---------------------
32
<PAGE> 33
- ---------------------
SUNAMERICA SERIES TRUST
ASSET ALLOCATION PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 58.3% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 10.6%
Apparel & Textiles -- 1.5%
Fruit Of The Loom, Inc.+............................................. 132,600 $ 4,723,875
Automotive -- 3.7%
Auto Desk, Inc. ..................................................... 63,700 1,783,600
Ford Motor Co. ...................................................... 135,200 4,427,800
Goodyear Tire & Rubber Co. .......................................... 114,300 5,543,550
Housing -- 1.9%
Centex Corp. ........................................................ 67,600 2,433,600
Lennar Corp. ........................................................ 132,200 3,437,200
Retail -- 3.5%
Fleming Cos., Inc. .................................................. 238,000 3,897,250
Penney (J.C.) Co., Inc. ............................................. 71,600 3,848,500
Sears, Roebuck & Co. ................................................ 69,100 3,437,725
------------
33,533,100
------------
CONSUMER STAPLES -- 6.3%
Food, Beverage & Tobacco -- 4.0%
Chiquita Brands International, Inc. ................................. 196,900 2,608,925
Philip Morris Cos., Inc. ............................................ 53,900 5,558,437
RJR Nabisco Holdings Corp. .......................................... 64,240 2,055,680
Supervalu, Inc. ..................................................... 78,200 2,316,675
Household Products -- 2.3%
Sunbeam Corp. ....................................................... 134,200 3,707,275
Unilever NV.......................................................... 20,300 3,514,438
------------
19,761,430
------------
ENERGY -- 6.2%
Energy Services -- 4.5%
Ashland, Inc. ....................................................... 62,100 2,980,800
CMS Energy Corp. .................................................... 43,500 1,413,750
Texaco, Inc. ........................................................ 47,600 4,718,350
Tosco Corp. ......................................................... 67,800 5,161,275
Energy Sources -- 1.7%
Atlantic Richfield Co. .............................................. 39,000 5,425,875
------------
19,700,050
------------
FINANCE -- 12.6%
Banks -- 4.4%
BankAmerica Corp. ................................................... 48,500 4,995,500
Chase Manhattan Corp. ............................................... 22,200 2,097,900
NationsBank Corp. ................................................... 42,900 4,445,512
Republic New York Corp. ............................................. 27,000 2,382,750
Financial Services -- 2.3%
Dean Witter, Discover & Co. ......................................... 80,500 5,504,188
Lehman Brothers Holdings, Inc. ...................................... 65,000 1,893,125
</TABLE>
---------------------
33
<PAGE> 34
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance -- 5.9%
Aetna, Inc. ......................................................... 82,100 $ 5,921,462
CIGNA Corp. ......................................................... 33,800 4,778,475
Integon Corp. ....................................................... 15,100 290,675
Lincoln National Corp. .............................................. 54,100 2,914,638
Loews Corp. ......................................................... 21,800 2,021,950
Partner Residential Holding Corp. ................................... 81,000 2,632,500
------------
39,878,675
------------
HEALTHCARE -- 2.6%
Health Services -- 1.2%
Tenet Healthcare Corp.+.............................................. 166,300 3,720,963
Medical Products -- 1.4%
Baxter International, Inc. .......................................... 109,000 4,632,500
------------
8,353,463
------------
INDUSTRIAL & COMMERCIAL -- 6.5%
Aerospace & Military Technology -- 3.5%
Lear Corp.+.......................................................... 73,600 2,640,400
McDonnell Douglas Corp. ............................................. 122,600 6,482,475
Northrop Grumman Corp. .............................................. 23,400 1,945,125
Transportation -- 3.0%
AMR Corp.+........................................................... 32,900 3,002,125
Canadian Pacific Ltd. ............................................... 139,500 3,836,250
Consolidated Freightways, Inc. ...................................... 116,100 2,800,912
------------
20,707,287
------------
INFORMATION & ENTERTAINMENT -- 3.1%
Leisure & Tourism -- 3.1%
Brunswick Corp. ..................................................... 166,200 4,238,100
Continental Airlines, Inc. .......................................... 194,400 5,516,100
------------
9,754,200
------------
INFORMATION TECHNOLOGY -- 2.3%
Electronics -- 2.3%
Avnet, Inc. ......................................................... 91,600 5,358,600
Teradyne, Inc.+...................................................... 80,600 1,904,175
------------
7,262,775
------------
MATERIALS -- 6.4%
Chemicals -- 0.9%
Geon Co. ............................................................ 142,100 2,682,137
Forest Products -- 4.4%
Georgia-Pacific Corp. ............................................... 59,200 4,306,800
Owens Illinois, Inc.+................................................ 271,300 5,019,050
Stone Container Corp. ............................................... 198,400 3,050,400
Universal Corp. ..................................................... 52,400 1,506,500
Metals & Minerals -- 1.1%
AK Steel Holding Corp. .............................................. 92,600 3,530,375
------------
20,095,262
------------
</TABLE>
- ---------------------
34
<PAGE> 35
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 1.7%
Electric Utilities -- 1.7%
Long Island Lighting Co. ............................................ 212,700 $ 4,227,413
Unicom Corp. ........................................................ 43,600 1,160,850
------------
5,388,263
------------
TOTAL COMMON STOCK (cost $150,722,326)............................... 184,434,505
------------
<CAPTION>
PREFERRED STOCK -- 0.1%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 0.1%
Broadcasting & Media -- 0.1%
Time Warner, Inc. Series M 10.25% (cost $252,516).................... 251 272,492
------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 35.1% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 0.2%
Housing -- 0.2%
Empresas Ica Sociedad 9.75% 1998..................................... $ 310,000 314,030
United States Home Corp. 7.95% 2001.................................. 405,000 409,050
------------
723,080
------------
CONSUMER STAPLES -- 0.7%
Food, Beverage & Tobacco -- 0.6%
Ceval Alimentos 11.13% 2004*......................................... 300,000 303,188
Instituto Fomento Industrial 8.38% 2001*............................. 400,000 414,750
RJR Nabisco, Inc. 8.00% 2001......................................... 280,000 284,418
RJR Nabisco, Inc. 8.63% 2002......................................... 750,000 775,695
Household Products -- 0.1%
American Standard, Inc. 11.38% 2004.................................. 390,000 422,175
------------
2,200,226
------------
ENERGY -- 0.9%
Energy Services -- 0.8%
Arkla, Inc. 8.88% 1999............................................... 675,000 715,595
Arkla, Inc. 9.20% 1997............................................... 250,000 257,322
Oryx Energy Co. 9.50% 1999........................................... 800,000 851,936
Tosco Corp. 7.00% 2000............................................... 550,000 561,110
YPF Sociedad Anonima 7.50% 2002(1)................................... 96,511 98,287
Energy Sources -- 0.1%
Empresa Col de Petroleos 7.25% 1998.................................. 240,000 242,400
------------
2,726,650
------------
FINANCE -- 9.7%
Banks -- 1.2%
Auburn Hills Trust 12.00% 2020....................................... 325,000 502,781
Banco Nacional de Comercio Exterior SNC 8.63% 2000*.................. 210,000 218,137
BankAmerica Corp. 9.75% 2000......................................... 400,000 445,404
Continental Bank NA 11.25% 2001...................................... 300,000 323,142
Continental Bank NA 12.50% 2001...................................... 450,000 553,990
Corporacion Andina de Fomento 7.25% 1998............................. 20,000 20,258
Security Pacific Corp. 11.50% 2000................................... 600,000 708,702
Signet Banking Corp. 9.63% 1999...................................... 775,000 834,388
Financial Services -- 8.5%
Airplanes Pass Through Trust 8.15% 2019(1)........................... 195,000 206,944
APP International Finance Co BV 10.25% 2000.......................... 520,000 534,650
</TABLE>
---------------------
35
<PAGE> 36
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Autoflow 1996 A Grantor Trust 7.48% 2002*(1)......................... $ 2,263,987 $ 2,300,069
Bear Stearns Mortgage Securities, Inc. 6.75% 2008.................... 1,000,959 985,163
Case Equipment Loan Trust 7.30% 2002................................. 445,709 453,210
Chevy Chase Auto Receivables 5.80% 2002.............................. 276,286 275,766
Countrywide Funding Corp. 8.43% 1999................................. 450,000 476,861
Discover Card Master Trust I 5.60% 2005(2)........................... 510,000 512,387
Discover Card Master Trust I 5.73% 2004(2)........................... 300,000 302,529
Discover Card Master Trust I 5.76% 2013(2)........................... 2,790,000 2,823,982
Discover Card Master Trust I 5.93% 2013(2)........................... 2,000,000 2,015,620
Fasco Grantor Trust 6.65% 2001(1).................................... 1,623,765 1,634,675
Financiera Energetica Nacional SA 9.38% 2006*........................ 310,000 332,866
Fingerhut Financial Services 6.45% 2002.............................. 920,000 931,785
Ford Capital BV 9.38% 1998........................................... 225,000 233,273
Ford Capital BV 9.50% 2001........................................... 800,000 898,432
Ford Credit Auto Loan Master Trust 6.50% 2002........................ 550,000 554,637
G.E. Captial Mortgage Services, Inc. 6.50% due 3/25/24............... 637,890 559,946
General Motors Acceptance Corp. 5.63% 2001........................... 750,000 731,580
General Motors Acceptance Corp. 7.63% 1998........................... 585,000 598,010
Imexsa Export Trust 10.13% 2003*..................................... 300,000 315,225
Nacional Financiera 5.88% 1998....................................... 860,000 843,875
Nacional Financiera 8.13% 1998....................................... 210,000 210,788
Nacional Financiera 8.46% 1998....................................... 600,000 609,285
Nacional Financiera 9.00% 1999....................................... 80,000 81,350
Nacional Financiera SNC 8.13% 1998*.................................. 250,000 250,938
Navistar Financial 6.55% 2001........................................ 304,626 306,719
NWA Trust 8.26% 2006................................................. 258,495 280,777
Olympic Financial Ltd. 13.00% 2000................................... 510,000 561,000
Premier Auto Trust 4.90% 1998........................................ 141,353 140,646
Premier Auto Trust 7.85% 1998........................................ 1,040,000 1,045,200
Resolution Funding Corp. zero coupon 2021............................ 1,580,000 313,093
Sears Credit Account Master Trust 6.20% 2006......................... 700,000 701,967
Sears Credit Account Master Trust 8.10% 2004......................... 700,000 741,776
Standard Credit Card Master Trust 6.25% 1998......................... 260,000 260,650
Standard Credit Card Master Trust 8.25% 2003......................... 1,010,000 1,094,588
Standard Credit Card Master Trust 8.25% 2007......................... 1,610,000 1,789,113
------------
30,516,177
------------
HEALTHCARE -- 0.1%
Health Services -- 0.1%
Tenet Healthcare Corp.+ 9.63% 2002................................... 240,000 264,900
------------
INDUSTRIAL & COMMERCIAL -- 0.8%
Aerospace & Military Technology -- 0.1%
Newport News Shipbuilding, Inc. 8.63% 2006*.......................... 210,000 214,662
Tevecap SA 12.63% 2004*.............................................. 200,000 204,060
Business Services -- 0.3%
Loewen Group International, Inc. 7.75% 2001*......................... 650,000 664,332
Multicanal Participacoes SA 12.63% 2004*............................. 200,000 215,000
</TABLE>
- ---------------------
36
<PAGE> 37
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Multi-Industry -- 0.4%
Tenneco, Inc. 10.00% 1998............................................ $ 1,280,000 $ 1,360,986
------------
2,659,040
------------
INFORMATION & ENTERTAINMENT -- 3.1%
Broadcasting & Media -- 1.3%
CBS 7.75% 1999....................................................... 740,000 748,902
Tele-Communications, Inc. 9.65% 2003................................. 375,000 409,500
Time Warner, Inc. 7.95% 2000......................................... 2,145,000 2,234,339
Time Warner, Inc. 9.63% 2002......................................... 200,000 226,870
Viacom International, Inc. 9.13% 1999................................ 175,000 179,156
Viacom International, Inc. 10.25% 2001............................... 175,000 191,625
Cable -- 0.1%
Rogers Cablesystems 9.63% 2002....................................... 440,000 460,900
Leisure & Tourism -- 1.7%
America West Airlines 8.16% 2002..................................... 2,000,000 2,010,000
Blockbuster Entertainment Corp. 6.63% 1998........................... 580,000 581,149
Continental Airlines Pass Through Trust. 10.22% 2014................. 1,599,671 1,901,821
Norwest Airlines Corp. 8.97% 2015.................................... 880,000 944,918
------------
9,889,180
------------
INFORMATION TECHNOLOGY -- 1.5%
Communication Equipment -- 1.0%
Cablevision Industries Corp. 10.75% 2002............................. 1,760,000 1,927,042
TCI Communications, Inc. 6.28% 2003(1)(2)............................ 1,205,000 1,197,469
TCI Communications, Inc. 6.46% 2000.................................. 95,000 94,645
Computers & Business Equipment -- 0.3%
Comdisco, Inc. 5.75% 2001............................................ 500,000 490,395
Net Sat Services Ltd. 12.75% 2004*................................... 250,000 261,562
Telecommunications -- 0.2%
360 Communications Co. 7.13% 2003.................................... 725,000 728,436
------------
4,699,549
------------
MATERIALS -- 0.2%
Forest Products -- 0.2%
Grupo Industrial Durango SA de CV 12.00% 2001........................ 270,000 286,875
PT Indah Kiat Pulp & Paper Corp. 8.88% 2000.......................... 210,000 208,163
------------
495,038
------------
MUNICIPAL BONDS -- 0.4%
Municipal Bonds -- 0.4%
Connecticut State Health And Educational Facilities Authority 5.70%
2025............................................................... 450,000 456,457
Massachusetts Bay Transportation Authority Massachusetts 5.25%
2020............................................................... 305,000 297,378
Metropolitan Pier And Exposition Authority Illinois 5.25% 2027....... 450,000 431,510
------------
1,185,345
------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 1.3%
Foreign Government -- 1.3%
Province of Quebec 13.25% 2014....................................... 625,000 758,963
Republic of Argentina 8.54% 1998(1)(2)............................... 52,930 53,080
Republic of Argentina 8.54% 1998(1)(2)............................... 308,200 309,072
Republic of Argentina zero coupon 2000............................... 2,460,000 1,315,608
Rio de Janeiro 10.38% 1999........................................... 240,000 246,900
</TABLE>
---------------------
37
<PAGE> 38
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
NON-U.S. GOVERNMENT OBLIGATIONS (continued)
Foreign Government (continued)
Russian Federation 9.25% 2001*....................................... $ 400,000 $ 398,200
State of Israel 6.38% 2005........................................... 635,000 620,395
United Mexican States 7.56% 1997(2).................................. 370,000 370,610
United Mexican States 9.75% 2001..................................... 110,000 113,781
------------
4,186,609
------------
REAL ESTATE -- 0.3%
Real Estate Investment Trusts -- 0.3%
Chelsea GCA Realty, Inc. 7.75% 2001.................................. 350,000 355,617
Tanger Properties Ltd. 8.75% 2001.................................... 560,000 567,185
------------
922,802
------------
U.S. GOVERNMENT & AGENCIES -- 15.4%
U.S. Government & Agencies -- 15.4%
Federal Home Loan Mortgage Corp. 6.00% 2008.......................... 1,000,000 952,191
Federal Home Loan Mortgage Corp. 6.00% 2016.......................... 1,518,401 1,497,523
Federal Home Loan Mortgage Corp. 7.50% 2099.......................... 5,000,000 5,065,600
Federal Home Loan Mortgage Corp. 8.20% 1998.......................... 310,000 311,066
Federal National Mortgage Association 3.50% 2019..................... 3,000,000 2,645,610
Federal National Mortgage Association 7.00% 2026..................... 6,392,932 6,346,966
Federal National Mortgage Association 7.50% TBA...................... 2,000,000 2,041,860
Federal National Mortgage Association 8.00% TBA...................... 1,000,000 1,027,810
Federal National Mortgage Association 8.50% 2005..................... 1,640,000 1,749,158
Federal National Mortgage Association 8.50% 2006..................... 78,043 81,530
Federal National Mortgage Association 8.50% 2008..................... 868,330 904,957
Federal National Mortgage Association 8.50% 2026..................... 991,978 1,033,819
Federal National Mortgage Association 8.50% TBA...................... 1,000,000 1,042,180
Federal National Mortgage Association 8.50% TBA...................... 3,000,000 3,126,540
Government National Mortgage Association 7.00% TBA................... 1,000,000 994,060
Government National Mortgage Association 7.50% 2023.................. 965,558 983,662
Government National Mortgage Association 7.50% TBA................... 4,000,000 4,057,480
Government National Mortgage Association 8.00% TBA................... 6,000,000 6,183,720
United States Treasury Bonds 7.88% 2021@............................. 280,000 326,724
United States Treasury Bonds 8.75% 2017@............................. 4,740,000 5,962,019
United States Treasury Bonds 13.75% 2004............................. 200,000 294,156
United States Treasury Bonds Strip zero coupon 2017.................. 50,000 12,867
United States Treasury Bonds Strip zero coupon 2019.................. 40,000 8,803
United States Treasury Bonds Strip zero coupon 2020@................. 5,410,000 1,152,005
United States Treasury Notes 7.88% 2004@............................. 920,000 1,026,950
------------
48,829,256
------------
UTILITIES -- 0.5%
Electric Utilities -- 0.3%
Central Maine Power Co. 7.45% 1999................................... 885,000 887,850
Gas & Pipeline Utilities -- 0.2%
Bridas Corp. 12.50% 1999............................................. 660,000 697,950
------------
1,585,800
------------
TOTAL BONDS & NOTES (cost $108,605,845).............................. 110,883,652
------------
TOTAL INVESTMENT SECURITIES (cost $259,580,687)...................... 295,590,649
------------
</TABLE>
- ---------------------
38
<PAGE> 39
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 3.2% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 2.0%
Capital One Bank 6.48% due 8/15/97................................... $ 1,120,000 $ 1,122,912
Capital One Bank 8.33% due 2/10/97................................... 1,350,000 1,355,589
Capital One Bank 8.63% due 1/15/97................................... 1,000,000 1,002,860
Comdisco, Inc. 9.75% due 1/15/97..................................... 1,700,000 1,707,242
First USA Bank 8.10% due 2/21/97..................................... 400,000 401,880
K Mart Corp. 8.70% due 8/01/97....................................... 700,000 698,222
------------
6,288,705
------------
FOREIGN SHORT-TERM NOTES -- 1.2%
APP International Finance Co. BV zero coupon due 4/03/97............. 700,000 680,099
Banco de Brazil 9.50% due 8/28/97.................................... 80,000 81,300
British Aerospace PLC 7.55% due 5/15/97*............................. 150,000 150,897
Financiera Energetica Nacional SA 6.63% due 12/13/96................. 600,000 597,300
Petroleo Brasileiros SA 8.75% due 12/09/96........................... 50,000 50,008
Republic of Argentina zero coupon due 2/14/97........................ 1,180,000 1,162,300
Telebras 10.38% due 9/09/97.......................................... 250,000 255,950
Telecom Brasil 10.00% due 6/16/97.................................... 250,000 254,075
Telecomunicacoes Brasileiras SA 10.00% due 3/31/97................... 260,000 264,713
Telecomunicacoes Brasileiras SA 10.00% due 10/22/97.................. 380,000 386,887
------------
3,883,529
------------
TOTAL SHORT-TERM SECURITIES (cost $10,178,052)....................... 10,172,234
------------
<CAPTION>
REPURCHASE AGREEMENT -- 9.9%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 9.9%
Agreement with State Street Bank & Trust Co., bearing interest of
5.45% dated 11/29/96, to be repurchased 12/02/96 in the amount of
$31,400,059 and collateralized by $28,750,000 U.S. Treasury Bonds
7.88% due 11/25/04 @ (cost $31,386,000)............................ 31,386,000 31,386,000
------------
TOTAL INVESTMENTS --
(cost $301,144,739) 106.6% 337,148,883
Liabilities in excess of other assets -- (6.6) (20,760,457)
------ ------------
NET ASSETS -- 100.0% $316,388,426
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
(1) Fair valued security; see Note 2
(2) Variable rate security; rate as of November 30, 1996
ADS -- American Depository Shares
TBA -- Securities purchased on a forward commitment basis with an
approximate principal amount and no definitive maturity
date. The actual principal amount and maturity date will be
determined upon settlement date.
---------------------
39
<PAGE> 40
@ The security or a portion thereof represents collateral for the
following open futures contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
-----------------------------------------------------------------------------------------------------------
NUMBER OF EXPIRATION VALUE AT VALUE AS OF UNREALIZED
CONTRACTS DESCRIPTION DATE TRADE DATE NOVEMBER 30, 1996 APPRECIATION
-----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
5 Long 90 Day Euro Dollar........... December 1996 $1,175,782 $ 1,181,375 $ 5,593
5 Long 90 Day Euro Dollar........... March 1997 1,173,657 1,181,875 8,218
5 Long 90 Day Euro Dollar........... June 1997 1,171,657 1,180,875 9,218
4 Long 90 Day Euro Dollar........... September 1997 937,030 943,900 6,870
4 Long 90 Day Euro Dollar........... December 1997 936,030 942,500 6,470
4 Long 90 Day Euro Dollar........... June 1998 935,725 941,100 5,375
Standard & Poor's 500
16 Long Index........................ December 1996 5,353,345 6,066,000 712,655
10 Long U.S. 2 Year Note............. March 1997 2,075,689 2,079,532 3,843
10 Long U.S. 5 Year Note............. March 1997 1,081,939 1,082,188 249
107 Long U.S. 10 Year Note............ March 1997 11,864,806 11,933,849 69,043
50 Long U.S. Treasury Bond........... December 1996 5,376,943 5,810,940 433,997
--------------
Net Unrealized Appreciation................................................... $1,261,531
=============
</TABLE>
See Notes to Financial Statements
- ---------------------
40
<PAGE> 41
- ---------------------
SUNAMERICA SERIES TRUST
UTILITY PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 83.2% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 1.1%
Automotive -- 1.1%
Ford Motor Co. ......................................................... 2,100 $ 68,775
------------
CONSUMER STAPLES -- 2.3%
Food, Beverage & Tobacco -- 2.3%
Philip Morris Cos., Inc. ............................................... 1,400 144,375
------------
ENERGY -- 0.6%
Energy Services -- 0.6%
Exxon Corp. ............................................................ 400 37,850
------------
FINANCE -- 1.9%
Banks -- 1.3%
Mellon Bank Corp. ...................................................... 1,100 79,475
Financial Services -- 0.6%
Merrill Lynch & Co., Inc. .............................................. 1,900 39,663
------------
119,138
------------
INDUSTRIAL & COMMERCIAL -- 1.0%
Business Services -- 1.0%
Browning-Ferris Industries, Inc. ....................................... 2,200 65,725
------------
INFORMATION TECHNOLOGY -- 2.0%
Telecommunications -- 2.0%
Sociedade Tecnica de Equipamentos SA.................................... 30,400 93,449
Telefonica Delaware Peru SA ADR......................................... 1,700 32,937
------------
126,386
------------
REAL ESTATE -- 2.9%
Real Estate Investment Trusts -- 2.9%
Meditrust Corp. ........................................................ 4,900 183,138
------------
UTILITIES -- 71.4%
Electric Utilities -- 38.8%
CINergy Corp. .......................................................... 2,200 73,700
DPL, Inc. .............................................................. 7,300 177,938
DQE, Inc. .............................................................. 5,400 159,300
Duke Power Co. ......................................................... 5,300 245,787
FPL Group, Inc.+........................................................ 5,700 262,912
GPU, Inc. .............................................................. 2,800 94,150
Iberdrola SA ........................................................... 6,500 75,015
Illinova Corp. ......................................................... 6,000 159,000
Korea Electric Power Corp. ADR.......................................... 1,700 29,963
National Power PLC Corp. ............................................... 4,400 140,250
NIPSCO Industries, Inc. ................................................ 3,600 139,500
Pacificorp.............................................................. 4,600 96,600
Pinnacle West Capital Group............................................. 6,200 192,975
Portland General Corp. ................................................. 3,200 137,600
</TABLE>
---------------------
41
<PAGE> 42
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Electric Utilities (continued)
Southern Co. ........................................................... 6,000 $ 133,500
Teco Energy, Inc. ...................................................... 5,300 129,188
Telecomunicacoes Brasileras SA ADR...................................... 1,000 75,750
Texas Utilities Co. .................................................... 3,100 122,450
Gas & Pipeline Utilities -- 12.2%
American Water Works, Inc. ............................................. 600 11,850
CMS Energy Corp. ....................................................... 5,900 191,750
MCN Corp. .............................................................. 5,700 163,875
New Jersey Resources Corp. ............................................. 200 5,925
Pacific Enterprises..................................................... 4,900 150,062
PanEnergy Corp. ........................................................ 1,500 66,000
PECO Energy Co. ........................................................ 4,300 109,650
Williams Cos., Inc. .................................................... 1,200 67,350
Telephone -- 20.4%
Ameritech Corp. ........................................................ 3,300 194,287
AT&T Corp. ............................................................. 3,400 133,450
BellSouth Corp. ........................................................ 5,000 201,875
Compania de Telefonos Chile SA ADR...................................... 400 38,050
GTE Corp. .............................................................. 5,000 224,375
MCI Communications Corp. ............................................... 6,700 204,350
Pacific Telesis Group................................................... 4,100 151,700
SBC Communications, Inc. ............................................... 1,200 63,150
Sprint Corp. ........................................................... 1,700 71,188
-----------
4,494,465
-----------
TOTAL COMMON STOCK (cost $4,998,417).................................... 5,239,852
-----------
<CAPTION>
PREFERRED STOCK -- 10.6%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY -- 0.8%
Energy Sources -- 0.8%
Sun Co., Inc. $1.80..................................................... 2,000 51,250
-----------
FINANCE -- 5.2%
Financial Services -- 4.1%
International Paper Capital Trust 5.25%................................. 500 24,063
Merrill Lynch & Co., Inc. 6.00%......................................... 2,200 143,825
Salomon, Inc. 7.63%..................................................... 1,100 32,862
Salomon, Inc. 6.25%..................................................... 1,000 60,250
Insurance -- 1.1%
Aetna, Inc. 6.25%....................................................... 900 66,825
-----------
327,825
-----------
INDUSTRIAL & COMMERCIAL -- 0.5%
Business Services -- 0.5%
Amcor Ltd. 7.25%........................................................ 600 30,225
-----------
INFORMATION & ENTERTAINMENT -- 0.5%
Broadcasting & Media -- 0.5%
Hollinger International, Inc. 9.75%..................................... 3,000 32,625
-----------
INFORMATION TECHNOLOGY -- 1.4%
Communication Equipment -- 1.0%
AirTouch Communications, Inc. 6.00%..................................... 2,100 60,112
</TABLE>
- ---------------------
42
<PAGE> 43
<TABLE>
<CAPTION>
PREFERRED STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Computers & Business Equipment -- 0.4%
Alco Standard Corp. $5.04............................................... 300 $ 28,088
-----------
88,200
-----------
MATERIALS -- 0.8%
Metals & Minerals -- 0.8%
Coeur D' Alene Mines Corp. 7.00%........................................ 2,800 47,950
-----------
UTILITIES -- 1.4%
Gas & Pipeline Utilities -- 1.4%
Williams Cos., Inc. $3.50............................................... 1,000 88,000
-----------
TOTAL PREFERRED STOCK (cost $635,592)................................... 666,075
-----------
<CAPTION>
PRINCIPAL
CONVERTIBLE BONDS -- 2.9% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 0.3%
Retail -- 0.3%
Saks Holdings, Inc. 5.50% 2006.......................................... $ 20,000 20,250
-----------
HEALTHCARE -- 0.7%
Drugs -- 0.7%
Alza Corp. 5.00% 2006................................................... 20,000 19,900
Tenet Healthcare Corp. 6.00% 2005....................................... 20,000 20,900
-----------
40,800
-----------
INFORMATION TECHNOLOGY -- 0.7%
Electronics -- 0.7%
Solectron Corp. 6.00% 2006.............................................. 40,000 45,300
-----------
UTILITIES -- 1.2%
Electric Utilities -- 1.2%
Korea Electric Power Corp. 5.00% 2001................................... 30,000 29,400
New World Infrastructure Ltd. 5.00% 2001................................ 40,000 47,450
-----------
76,850
-----------
TOTAL CONVERTIBLE BONDS (cost $167,427)................................. 183,200
-----------
TOTAL INVESTMENT SECURITIES (cost $5,801,436)........................... 6,089,127
-----------
<CAPTION>
SHORT-TERM SECURITIES -- 5.3%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 5.3%
Cayman Island Time Deposit with State Street Bank & Trust Co.
2.75% due 12/02/96 (cost $335,000).................................... 335,000 335,000
-----------
TOTAL INVESTMENTS --
(cost $6,136,436) 102.0% 6,424,127
Liabilities in excess of other assets -- (2.0) (125,480)
------ -----------
NET ASSETS -- 100.0% $6,298,647
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
43
<PAGE> 44
- ---------------------
SUNAMERICA SERIES TRUST
GROWTH-INCOME PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 93.9% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 4.7%
Automotive -- 1.0%
Goodyear Tire & Rubber Co. .......................................... 67,400 $ 3,268,900
Retail -- 3.7%
CompUSA, Inc. ....................................................... 30,000 1,350,000
Federated Department Stores, Inc.+................................... 79,700 2,719,763
Kohl's Corp.+........................................................ 40,000 1,595,000
Kroger Co.+.......................................................... 40,000 1,845,000
Price/Costco, Inc.+.................................................. 94,700 2,201,775
Sears, Roebuck & Co. ................................................ 45,000 2,238,750
------------
15,219,188
------------
CONSUMER STAPLES -- 9.8%
Food, Beverage & Tobacco -- 4.2%
Campbell Soup Co. ................................................... 38,000 3,139,750
Philip Morris Cos., Inc. ............................................ 66,000 6,806,250
RJR Nabisco Holdings Corp. .......................................... 45,000 1,743,750
Wrigley, (Wm) Jr. Co. ............................................... 35,000 2,043,125
Household Products -- 5.6%
Colgate-Palmolive Co. ............................................... 35,000 3,241,875
Gillette Co. ........................................................ 72,700 5,361,625
Procter & Gamble Co. ................................................ 55,000 5,981,250
Sunbeam Corp. ....................................................... 65,000 1,795,625
United States Industries, Inc. ...................................... 55,200 1,628,400
------------
31,741,650
------------
ENERGY -- 9.2%
Energy Services -- 6.0%
Baker Hughes, Inc. .................................................. 44,000 1,611,500
Exxon Corp. ......................................................... 149,700 14,165,363
Schlumberger Ltd. ................................................... 36,000 3,744,000
Energy Sources -- 3.2%
Apache Corp. ........................................................ 55,000 2,000,625
BJ Services Co.+..................................................... 38,000 1,814,500
Enron Corp. ......................................................... 108,000 4,941,000
Transocean Offshore, Inc. ........................................... 28,000 1,687,000
------------
29,963,988
------------
FINANCE -- 17.5%
Banks -- 5.2%
Chase Manhattan Corp. ............................................... 39,000 3,685,500
First Chicago Corp. ................................................. 68,052 3,998,055
First Union Corp. ................................................... 66,900 5,109,487
NationsBank Corp. ................................................... 40,500 4,196,813
Financial Services -- 7.4%
American Express Co. ................................................ 70,000 3,657,500
Dean Witter, Discover & Co. ......................................... 50,000 3,418,750
First Data Corp. .................................................... 58,000 2,312,750
Household International, Inc. ....................................... 22,000 2,084,500
MBNA Corp. .......................................................... 80,000 3,230,000
</TABLE>
- ---------------------
44
<PAGE> 45
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Merrill Lynch & Co., Inc. ........................................... 53,000 $ 4,253,250
Morgan Stanley Group, Inc. .......................................... 34,100 2,050,262
Travelers Group, Inc. ............................................... 69,400 3,123,000
Insurance -- 4.9%
American International Group, Inc. .................................. 42,000 4,830,000
General Reinsurance Group............................................ 17,900 3,020,625
ITT Hartford Group................................................... 28,000 1,914,500
NAC Reinsurance Corp. ............................................... 40,000 1,460,000
PMI Group, Inc. ..................................................... 48,300 2,801,400
Travelers Aetna Property Casualty Corp. ............................. 55,000 1,897,500
-------------
57,043,892
-------------
HEALTHCARE -- 13.4%
Drugs -- 6.9%
Amgen, Inc.+......................................................... 45,000 2,739,375
Biogen, Inc.+........................................................ 40,000 1,530,000
Merck & Co., Inc. ................................................... 100,900 8,374,700
Pfizer, Inc. ........................................................ 53,000 4,750,125
Schering-Plough Corp. ............................................... 72,500 5,165,625
Health Services -- 2.6%
Columbia/HCA Healthcare Corp. ....................................... 127,050 5,082,000
Oxford Health Plans, Inc.+........................................... 33,000 1,914,000
Pacificare Health Systems, Inc., Class A+............................ 19,000 1,501,000
Medical Products -- 3.9%
Abbott Laboratories.................................................. 88,000 4,906,000
Johnson & Johnson Co. ............................................... 94,000 4,993,750
Medtronic, Inc. ..................................................... 41,000 2,711,125
-------------
43,667,700
-------------
INDUSTRIAL & COMMERCIAL -- 12.4%
Aerospace & Military Technology -- 3.6%
AlliedSignal, Inc. .................................................. 90,000 6,592,500
General Dynamics Corp. .............................................. 33,000 2,433,750
United Technologies Corp. ........................................... 19,000 2,664,750
Business Services -- 0.9%
USA Waste Services, Inc.+............................................ 50,000 1,612,500
Whitman Corp. ....................................................... 60,200 1,384,600
Electrical Equipment -- 4.3%
General Electric Co. ................................................ 135,000 14,040,000
Machinery -- 1.5%
Applied Materials, Inc.+............................................. 45,000 1,715,625
Case Corp. .......................................................... 33,000 1,732,500
Centocor, Inc.+...................................................... 53,200 1,469,650
Multi-Industry -- 0.4%
Tyco International Ltd. ............................................. 22,900 1,253,775
Transportation -- 1.7%
Burlington Northern Santa Fe......................................... 20,000 1,797,500
Canadian Pacific Ltd. ............................................... 60,000 1,650,000
Union Pacific Corp. ................................................. 33,000 1,922,250
-------------
40,269,400
-------------
</TABLE>
---------------------
45
<PAGE> 46
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 4.5%
Broadcasting & Media -- 2.5%
Gannett Co., Inc. ................................................... 20,000 $ 1,570,000
Lin Television Corp.+................................................ 34,000 1,364,250
New York Times Co., Class A.......................................... 40,000 1,495,000
Tele-Communications Liberty Media Group+............................. 64,650 1,616,250
Time Warner, Inc. ................................................... 55,000 2,241,250
Leisure & Tourism -- 2.0%
Brinker International, Inc.+......................................... 80,500 1,489,250
Carnival Corp. ...................................................... 62,200 1,967,075
Disney (Walt) Co. ................................................... 40,000 2,950,000
-------------
14,693,075
-------------
INFORMATION TECHNOLOGY -- 14.5%
Communication Equipment -- 0.8%
AirTouch Communications, Inc.+....................................... 103,000 2,639,375
Computers & Business Equipment -- 2.3%
3Com Corp.+.......................................................... 30,000 2,253,750
Compaq Computer Corp.+............................................... 35,400 2,805,450
Dell Computer Corp.+................................................. 25,000 2,540,625
Electronics -- 6.7%
ADT Ltd. ............................................................ 70,000 1,435,000
Altera Corp.+........................................................ 33,000 2,491,500
Intel Corp. ......................................................... 114,000 14,463,750
National Semiconductor Corp.+........................................ 75,000 1,837,500
Solectron Corp.+..................................................... 28,000 1,638,000
Software -- 4.7%
Cisco Systems, Inc.+................................................. 60,000 4,072,500
Microsoft Corp.+..................................................... 43,000 6,745,625
Netscape Communications Corp.+....................................... 30,000 1,676,250
Oracle Systems Corp.+................................................ 55,000 2,695,000
-------------
47,294,325
-------------
MATERIALS -- 3.7%
Chemicals -- 2.1%
Monsanto Co. ........................................................ 120,000 4,770,000
Morton International, Inc. .......................................... 54,000 2,180,250
Forest Products -- 1.0%
Crown, Cork & Seal, Inc. ............................................ 32,800 1,738,400
Louisiana Pacific Corp. ............................................. 60,000 1,357,500
Metals & Minerals -- 0.6%
Reynolds Metals Co. ................................................. 33,000 1,963,500
-------------
12,009,650
-------------
REAL ESTATE -- 0.6%
Real Estate Investment Trusts -- 0.6%
Starwood Lodging Trust............................................... 38,000 1,814,500
-------------
UTILITIES -- 3.6%
Electric Utilities -- 2.1%
FPL Group, Inc. ..................................................... 145,000 6,688,125
</TABLE>
- ---------------------
46
<PAGE> 47
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Gas & Pipeline Utilities -- 1.5%
CINergy Corp. ....................................................... 150,000 $ 5,025,000
-------------
11,713,125
-------------
TOTAL INVESTMENT SECURITIES (cost $238,355,190)...................... 305,430,493
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 5.9% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 5.6%
Cayman Island Time Deposit with State Street Bank & Trust Co.
4.88% due 12/02/96@................................................ $18,251,000 18,251,000
-------------
U.S. GOVERNMENT -- 0.3%
United States Treasury Bills 4.88% due 12/12/96@..................... 265,000 262,899
United States Treasury Bills 5.01% due 12/12/96@..................... 240,000 238,098
United States Treasury Bills 5.05% due 12/12/96@..................... 550,000 549,190
-------------
TOTAL SHORT-TERM SECURITIES (cost $19,304,389)....................... 19,301,187
-------------
TOTAL INVESTMENTS --
(cost $257,659,579) 99.8% 324,731,680
Other assets less liabilities -- 0.2 731,645
------ -------------
NET ASSETS -- 100.0% $325,463,325
====== ==============
</TABLE>
-----------------------------
+ Non-income producing securities
@ The security or a portion thereof represents collateral for the
following open futures contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
- -------------------------------------------------------------------------------------------------------------------------------
NUMBER OF EXPIRATION VALUE AT VALUE AS OF UNREALIZED
CONTRACTS DESCRIPTION DATE TRADE DATE NOVEMBER 30, 1996 APPRECIATION
- -------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
45 Long Standard & Poor's 500 Index..... December 1996 $16,098,244 $17,060,625 $962,381
===========
</TABLE>
See Notes to Financial Statements
---------------------
47
<PAGE> 48
- ---------------------
SUNAMERICA SERIES TRUST
FEDERATED VALUE PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 91.1% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 7.3%
Automotive -- 2.7%
Chrysler Corp. .......................................................... 1,100 $ 39,050
General Motors Corp. .................................................... 2,000 115,250
General Motors Corp., Class H............................................ 3,400 185,300
Retail -- 4.6%
Dayton Hudson Corp. ..................................................... 4,500 174,937
Dillard Department Stores, Inc., Class A ................................ 3,700 113,313
Sears, Roebuck & Co. .................................................... 2,400 119,400
Wal-Mart Stores, Inc. ................................................... 6,300 160,650
-------------
907,900
-------------
CONSUMER STAPLES -- 11.5%
Food, Beverage & Tobacco -- 5.3%
CPC International, Inc. ................................................. 2,400 199,800
Heinz (H.J.) Co. ........................................................ 3,900 147,713
IBP, Inc. ............................................................... 5,500 136,125
Philip Morris Cos., Inc. ................................................ 1,700 175,312
Household Products -- 6.2%
Avon Products, Inc. ..................................................... 2,000 111,500
Kimberly-Clark Corp. .................................................... 2,000 195,500
Rubbermaid, Inc. ........................................................ 7,500 180,000
Unilever NV ADR.......................................................... 1,700 294,312
-------------
1,440,262
-------------
ENERGY -- 10.0%
Energy Services -- 7.4%
Chevron Corp. ........................................................... 1,400 93,800
Exxon Corp. ............................................................. 1,200 113,550
Mobil Corp. ............................................................. 2,000 242,000
Royal Dutch Petroleum Co. ADR............................................ 600 101,925
Texaco, Inc. ............................................................ 1,100 109,037
Union Pacific Resources Group, Inc. ..................................... 5,200 155,350
Occidental Petroleum Corp. .............................................. 4,500 108,000
Energy Sources -- 2.6%
Columbia Gas Systems, Inc. .............................................. 2,500 161,563
Enron Corp. ............................................................. 3,500 160,125
-------------
1,245,350
-------------
FINANCE -- 14.4%
Banks -- 3.5%
Chase Manhattan Corp. ................................................... 1,300 122,850
Citicorp................................................................. 1,000 109,250
National City Corp. ..................................................... 2,000 92,750
Republic New York Corp. ................................................. 1,300 114,725
</TABLE>
- ---------------------
48
<PAGE> 49
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services -- 5.4%
Dean Witter, Discover & Co. ............................................. 1,300 $ 88,888
Federal Home Loan Mortgage Corp. ........................................ 900 102,825
Federal National Mortgage Association.................................... 5,200 214,500
H&R Block, Inc. ......................................................... 5,500 160,875
Travelers Group, Inc. ................................................... 2,267 102,000
Insurance -- 5.5%
Aflac, Inc. ............................................................. 4,000 167,000
Allstate Corp. .......................................................... 2,200 132,550
CIGNA Corp. ............................................................. 800 113,100
Loews Corp. ............................................................. 900 83,475
Marsh & McLennan Cos. ................................................... 1,700 192,737
------------
1,797,525
------------
HEALTHCARE -- 11.3%
Drugs -- 3.9%
American Home Products Corp. ............................................ 2,400 154,200
Bristol-Myers Squibb Co. ................................................ 2,000 227,500
Merck & Co., Inc. ....................................................... 1,200 99,600
Health Services -- 2.3%
Columbia/HCA Healthcare Corp. ........................................... 3,600 144,000
Healthsource, Inc.+...................................................... 5,200 58,500
United Healthcare Corp. ................................................. 2,000 86,250
Medical Products -- 5.1%
Abbott Laboratories...................................................... 3,500 195,125
Bausch & Lomb, Inc. ..................................................... 2,600 96,525
Becton Dickinson & Co. .................................................. 2,600 109,200
Biomet, Inc.+............................................................ 6,500 107,250
Tambrands, Inc. ......................................................... 3,000 128,250
------------
1,406,400
------------
INDUSTRIAL & COMMERCIAL -- 8.9%
Aerospace & Military Technology -- 2.3%
Lockheed Martin Corp. ................................................... 739 66,972
Textron, Inc. ........................................................... 2,100 200,287
Martin Marietta Materials, Inc. ......................................... 759 17,837
Business Services -- 1.7%
Browning-Ferris Industries, Inc. ........................................ 7,900 212,312
Electrical Equipment -- 1.0%
General Electric Co. .................................................... 1,200 124,800
Machinery -- 1.2%
Ingersoll-Rand Co. ...................................................... 3,200 148,800
Multi-Industry -- 1.0%
Rockwell International Corp. ............................................ 2,000 128,500
Transportation -- 1.7%
AMR Corp.+............................................................... 1,300 118,625
Union Pacific Corp. ..................................................... 1,500 87,375
------------
1,105,508
------------
INFORMATION & ENTERTAINMENT -- 1.2%
Broadcasting & Media -- 0.7%
Gannett Co., Inc. ....................................................... 1,100 86,350
Entertainment Products -- 0.2%
Mattel, Inc. ............................................................ 700 21,613
</TABLE>
---------------------
49
<PAGE> 50
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT (continued)
Leisure & Tourism -- 0.3%
Disney (Walt) Co. ....................................................... 600 $ 44,250
------------
152,213
------------
INFORMATION TECHNOLOGY -- 8.7%
Computers & Business Equipment -- 3.6%
Automatic Data Processing, Inc. ......................................... 1,400 60,025
Electronic Data Systems Corp. ........................................... 3,800 183,825
Hewlett-Packard Co. ..................................................... 1,900 102,363
International Business Machines Corp. ................................... 600 95,625
Electronics -- 2.5%
Intel Corp. ............................................................. 1,400 177,625
Solectron Corp. ......................................................... 2,300 134,550
Software -- 1.7%
Computer Associates International, Inc. ................................. 1,700 111,775
Oracle Systems Corp.+.................................................... 2,000 98,000
Telecommunications -- 0.9%
Lucent Technologies, Inc. ............................................... 2,300 117,875
------------
1,081,663
------------
MATERIALS -- 6.7%
Chemicals -- 5.2%
Betzdearborn, Inc. ...................................................... 1,600 92,600
Eastman Kodak Co. ....................................................... 900 72,900
Monsanto Co. ............................................................ 3,200 127,200
Morton International, Inc. .............................................. 4,800 193,800
Sigma-Aldrich Corp. ..................................................... 500 31,250
Great Lakes Chemical Corp. .............................................. 2,300 123,337
Forest Products -- 1.5%
Consolidated Papers, Inc. ............................................... 2,100 104,213
International Paper Co. ................................................. 2,000 85,000
------------
830,300
------------
UTILITIES -- 11.1%
Electric Utilities -- 1.6%
FPL Group, Inc. ......................................................... 2,100 96,863
Southern Co. ............................................................ 4,500 100,125
Gas & Pipeline Utilities -- 3.3%
Pacific Gas & Electric Co. .............................................. 7,900 190,587
Unocal Corp. ............................................................ 2,400 97,800
USX Marathon Group....................................................... 5,500 125,813
Telephone -- 6.2%
AT&T Corp. .............................................................. 2,500 98,125
GTE Corp. ............................................................... 3,500 157,062
MCI Communications Corp. ................................................ 9,100 277,550
Pacific Telesis Group.................................................... 6,500 240,500
------------
1,384,425
------------
TOTAL INVESTMENT SECURITIES (cost $10,155,437)........................... 11,351,546
------------
</TABLE>
- ---------------------
50
<PAGE> 51
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 7.7% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 7.7%
Cayman Island Time Deposit with State Street Bank & Trust Co.
2.75% due 12/02/96 (cost $964,000)..................................... $964,000 $ 964,000
------------
TOTAL INVESTMENTS --
(cost $11,119,437) 98.8% 12,315,546
Other assets less liabilities -- 1.2 143,982
------ ------------
NET ASSETS -- 100.0% $12,459,528
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
51
<PAGE> 52
- ---------------------
SUNAMERICA SERIES TRUST
VENTURE VALUE PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 90.9% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 3.4%
Automotive -- 1.7%
General Motors Corp. ................................................ 149,200 $ 8,597,650
Housing -- 0.2%
Masco Corp. ......................................................... 25,100 916,150
Retail -- 1.5%
Federated Department Stores, Inc.+................................... 126,800 4,327,050
Harcourt General, Inc. .............................................. 61,500 3,359,437
------------
17,200,287
------------
CONSUMER STAPLES -- 8.1%
Food, Beverage & Tobacco -- 7.7%
American Brands, Inc. ............................................... 4,200 200,550
Archer-Daniels-Midland Co. .......................................... 240,905 5,299,910
Coca-Cola Co. ....................................................... 105,600 5,398,800
Guinness PLC......................................................... 313,000 2,341,712
McDonald's Corp. .................................................... 196,200 9,172,350
Nestle SA ADR........................................................ 60,300 3,275,846
Philip Morris Cos., Inc. ............................................ 110,700 11,415,937
Tyson Foods, Inc., Class A .......................................... 74,400 2,436,600
Household Products -- 0.4%
Kimberly-Clark Corp. ................................................ 20,900 2,042,975
Maytag Corp. ........................................................ 4,200 80,325
------------
41,665,005
------------
ENERGY -- 8.5%
Energy Services -- 6.8%
Amerada Hess Corp. .................................................. 1,800 105,975
Amoco Corp. ......................................................... 1,400 108,675
Burlington Resources, Inc. .......................................... 228,400 12,105,200
Chevron Corp. ....................................................... 7,600 509,200
Cooper Cameron, Corp.+............................................... 11,000 723,250
Energy Ventures, Inc.+............................................... 76,800 3,772,800
Exxon Corp. ......................................................... 11,800 1,116,575
Halliburton Co. ..................................................... 157,200 9,471,300
Mobil Corp. ......................................................... 1,100 133,100
Schlumberger Ltd. ................................................... 64,400 6,697,600
Sonat, Inc. ......................................................... 2,200 113,850
Energy Sources -- 1.7%
Atlantic Richfield Co. .............................................. 2,400 333,900
Edison International................................................. 700 13,913
Noble Affiliates, Inc. .............................................. 135,057 6,364,562
Union Pacific Resources Group, Inc. ................................. 75,721 2,262,165
------------
43,832,065
------------
FINANCE -- 40.7%
Banks -- 9.4%
Banc One Corp. ...................................................... 118,980 5,666,422
BankAmerica Corp. ................................................... 86,300 8,888,900
First Bank Systems, Inc. ............................................ 127,100 9,262,412
</TABLE>
- ---------------------
52
<PAGE> 53
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Banks (continued)
First Union Corp. ................................................... 2,000 $ 152,750
Golden West Financial Corp. ......................................... 70,600 4,765,500
State Street Boston Corp. ........................................... 114,000 7,709,250
Wells Fargo & Co. ................................................... 41,800 11,897,325
Financial Services -- 16.7%
American Express Co. ................................................ 308,900 16,140,025
Barnett Banks, Inc. ................................................. 89,500 3,938,000
Citicorp. ........................................................... 113,075 12,353,444
Dean Witter, Discover & Co. ......................................... 121,000 8,273,375
Donaldson Lufkin & Jenrette, Inc. ................................... 116,500 4,150,313
Federal Home Loan Mortgage Corp. .................................... 82,100 9,379,925
Morgan (J.P.) & Co., Inc. ........................................... 79,100 7,465,063
Morgan Stanley Group, Inc. .......................................... 176,300 10,600,037
Travelers Group, Inc. ............................................... 313,533 14,109,000
Insurance -- 13.8%
20th Century Industries+............................................. 141,700 2,125,500
Allstate Corp. ...................................................... 198,395 11,953,299
American International Group, Inc. .................................. 40,200 4,623,000
Berkley (W.R.) Corp. ................................................ 129,300 6,788,250
Chubb Corp. ......................................................... 175,300 9,510,025
Equitable Cos., Inc. ................................................ 331,700 8,209,575
General Reinsurance Corp............................................. 71,600 12,082,500
NAC Reinsurance Corp. ............................................... 34,400 1,255,600
Progressive Corp., Ohio.............................................. 74,600 5,203,350
Transatlantic Holdings, Inc. ........................................ 86,100 6,855,712
UNUM Corp. .......................................................... 39,200 2,788,100
Investment Companies -- 0.8%
Morgan Stanley Asia-Pacific Fund..................................... 375,367 3,988,274
-------------
210,134,926
-------------
HEALTHCARE -- 3.1%
Drugs -- 2.5%
Bristol-Myers Squibb Co. ............................................ 900 102,375
Lilly (Eli) & Co. ................................................... 43,900 3,358,350
Merck & Co., Inc. ................................................... 15,300 1,269,900
Pfizer, Inc. ........................................................ 89,500 8,021,437
Medical Products -- 0.6%
American Home Products Corp. ........................................ 2,200 141,350
Johnson & Johnson Co. ............................................... 54,100 2,874,063
-------------
15,767,475
-------------
INDUSTRIAL & COMMERCIAL -- 7.2%
Aerospace & Military Technology -- 2.5%
Boeing Co. .......................................................... 83,600 8,307,750
General Motors Corp., Class H........................................ 84,900 4,627,050
Business Services -- 0.0%
ACNielsen Corp.+..................................................... 133 2,311
Cognizant Corp.+..................................................... 400 13,800
Dun & Bradstreet Corp. .............................................. 400 9,050
WMX Technologies, Inc. .............................................. 1,400 50,400
Electrical Equipment -- 0.1%
General Electric Co. ................................................ 5,800 603,200
</TABLE>
---------------------
53
<PAGE> 54
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Machinery -- 1.0%
Applied Materials, Inc.+............................................. 92,200 $ 3,515,125
Smith International, Inc.+........................................... 41,200 1,684,050
Transportation -- 3.6%
Burlington Northern Santa Fe......................................... 108,300 9,733,462
Illinois Central Corp. .............................................. 58,450 1,979,994
Union Pacific Corp. ................................................. 117,600 6,850,200
-------------
37,376,392
-------------
INFORMATION & ENTERTAINMENT -- 3.7%
Broadcasting & Media -- 3.0%
Gannett Co., Inc. ................................................... 90,900 7,135,650
News Corp., Ltd. ADR................................................. 261,200 4,505,700
Tribune Co. ......................................................... 43,100 3,728,150
Washington Post Co., Class B......................................... 100 34,800
Leisure & Tourism -- 0.7%
Disney (Walt) Co. ................................................... 52,200 3,849,750
-------------
19,254,050
-------------
INFORMATION TECHNOLOGY -- 10.3%
Communication Equipment -- 0.7%
AirTouch Communications, Inc.+....................................... 141,900 3,636,188
SBC Communications, Inc. ............................................ 1,200 63,150
Computers & Business Equipment -- 5.8%
Hewlett-Packard Co. ................................................. 185,000 9,966,875
International Business Machines Corp. ............................... 91,000 14,503,125
Komag, Inc.+......................................................... 170,700 5,505,075
Electronics -- 3.6%
Intel Corp. ......................................................... 116,400 14,768,250
Novellus Systems, Inc.+.............................................. 63,900 3,674,250
Telecommunications -- 0.2%
Globalstar Telecommunications Ltd.+.................................. 9,500 655,500
Lucent Technologies, Inc. ........................................... 4,245 217,556
-------------
52,989,969
-------------
MATERIALS -- 3.7%
Chemicals -- 1.6%
Dow Chemical Co. .................................................... 600 50,250
Eastman Kodak Co. ................................................... 104,400 8,456,400
Forest Products -- 1.0%
Fort Howard Corp.+................................................... 123,900 3,500,175
International Paper Co. ............................................. 1,300 55,250
Jefferson Smurfit Corp.+............................................. 104,900 1,416,150
Union Camp Corp. .................................................... 2,000 98,250
Metals & Minerals -- 1.1%
Martin Marietta Materials, Inc. ..................................... 235,000 5,522,500
-------------
19,098,975
-------------
REAL ESTATE -- 2.1%
Real Estate Investment Trusts -- 2.1%
Crescent Real Estate Equities........................................ 96,100 4,216,387
Federal Realty Investment Trust...................................... 45,600 1,185,600
Kimco Realty Corp. .................................................. 9,650 281,056
Mid-Atlantic Realty Trust............................................ 27,800 291,900
Saul Centers, Inc. .................................................. 28,900 440,725
</TABLE>
- ---------------------
54
<PAGE> 55
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE (continued)
Real Estate Investment Trusts (continued)
Simon DeBartolo Group, Inc. ......................................... 400 $ 10,950
United Dominion Realty Trust, Inc. .................................. 50,300 741,925
Vornado Realty Trust................................................. 71,800 3,239,975
Weingarten Realty Investors.......................................... 14,500 567,313
-------------
10,975,831
-------------
UTILITIES -- 0.1%
Electric Utilities -- 0.0%
Carolina Power & Light Co. .......................................... 900 32,962
Duke Power Co. ...................................................... 1,400 64,925
Enova Corp. ......................................................... 500 11,188
New England Electric Systems......................................... 500 17,125
Southern Co. ........................................................ 1,600 35,600
Wisconsin Energy Corp. .............................................. 800 21,400
Telephone -- 0.1%
AT&T Corp. .......................................................... 13,900 545,575
-------------
728,775
-------------
TOTAL COMMON STOCK (cost $378,127,522)............................... 469,023,750
-------------
<CAPTION>
PREFERRED STOCK -- 0.3%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 0.1%
Banks -- 0.1%
Banc One Corp., Series C............................................. 7,200 654,300
-------------
INFORMATION TECHNOLOGY -- 0.2%
Communication Equipment -- 0.2%
AirTouch Communications, Inc. Class B convertible 6.00%.............. 19,580 560,478
AirTouch Communications, Inc. Class C convertible 4.25%.............. 12,597 579,462
-------------
1,139,940
-------------
TOTAL PREFERRED STOCK (cost $1,570,968).............................. 1,794,240
-------------
TOTAL INVESTMENT SECURITIES (cost $379,698,490)...................... 470,817,990
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 8.8% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FEDERAL AGENCY OBLIGATIONS -- 8.8%
Federal Home Loan Bank Notes 5.20% due 12/05/96...................... $13,040,000 13,032,466
Federal Home Loan Mortgage Discount Notes 5.22% due 12/09/96......... 11,200,000 11,187,008
Federal Home Loan Mortgage Discount Notes 5.33% due 12/02/96......... 6,565,000 6,564,028
Federal National Mortgage Association Discount Notes 5.30% due
12/06/96........................................................... 14,890,000 14,879,039
-------------
TOTAL SHORT-TERM SECURITIES (cost $45,662,541)....................... 45,662,541
-------------
TOTAL INVESTMENTS --
(cost $425,361,031) 100.0% 516,480,531
Liabilities in excess of other assets -- (0.0) (67,160)
------ -------------
NET ASSETS -- 100.0% $516,413,371
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
55
<PAGE> 56
- ---------------------
SUNAMERICA SERIES TRUST
ALLIANCE GROWTH PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 94.6% SHARES VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 6.4%
Apparel & Textiles -- 1.4%
NIKE, Inc., Class B..................................................... 93,100 $ 5,295,063
Retail -- 5.0%
Dayton Hudson Corp. .................................................... 96,700 3,759,212
Home Depot, Inc. ....................................................... 235,400 12,270,225
Wal-Mart Stores, Inc. .................................................. 118,700 3,026,850
-------------
24,351,350
-------------
CONSUMER STAPLES -- 14.5%
Food, Beverage & Tobacco -- 13.6%
Campbell Soup Co. ...................................................... 102,300 8,452,538
McDonald's Corp. ....................................................... 151,500 7,082,625
PepsiCo, Inc. .......................................................... 353,100 10,548,862
Philip Morris Cos., Inc. ............................................... 215,800 22,254,375
Wrigley, (Wm) Jr. Co. .................................................. 61,400 3,584,225
Household Products -- 0.9%
Colgate-Palmolive Co. .................................................. 35,400 3,278,925
-------------
55,201,550
-------------
FINANCE -- 18.3%
Banks -- 4.8%
Chase Manhattan Corp. .................................................. 41,194 3,892,833
First Chicago Corp. .................................................... 61,600 3,619,000
First Union Corp. ...................................................... 52,800 4,032,600
Norwest Corp. .......................................................... 144,120 6,737,610
Wells Fargo & Co. ...................................................... 1 285
Financial Services -- 12.4%
Federal National Mortgage Association................................... 400,300 16,512,375
First Data Corp. ....................................................... 58,800 2,344,650
Household International, Inc. .......................................... 66,200 6,272,450
MBNA Corp. ............................................................. 297,700 12,019,637
Merrill Lynch & Co., Inc. .............................................. 84,300 6,765,075
Travelers Group, Inc. .................................................. 69,200 3,114,000
Insurance -- 1.1%
Allstate Corp. ......................................................... 63,400 3,819,850
MGIC Investment Corp. .................................................. 6,100 456,738
-------------
69,587,103
-------------
HEALTHCARE -- 13.8%
Drugs -- 7.9%
Amgen, Inc.+............................................................ 113,500 6,909,312
Merck & Co., Inc. ...................................................... 204,900 17,006,700
Pfizer, Inc. ........................................................... 68,500 6,139,313
Health Services -- 2.1%
Columbia/HCA Healthcare Corp. .......................................... 126,250 5,050,000
Pacificare Health Systems, Inc., Class A+............................... 19,700 1,556,300
Pacificare Health Systems, Inc., Class B+............................... 14,400 1,195,200
</TABLE>
- ---------------------
56
<PAGE> 57
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE (continued)
Medical Products -- 3.8%
Abbott Laboratories..................................................... 100,200 $ 5,586,150
Johnson & Johnson Co. .................................................. 64,800 3,442,500
Medtronic, Inc. ........................................................ 84,300 5,574,337
-------------
52,459,812
-------------
INDUSTRIAL & COMMERCIAL -- 6.4%
Aerospace & Military Technology -- 2.2%
AlliedSignal, Inc. ..................................................... 55,100 4,036,075
Boeing Co. ............................................................. 33,300 3,309,188
United Technologies Corp. .............................................. 6,900 967,725
Electrical Equipment -- 0.9%
Honeywell, Inc. ........................................................ 50,200 3,444,975
Machinery -- 2.2%
Applied Materials, Inc.+................................................ 227,900 8,688,687
Transportation -- 1.1%
Burlington Northern Santa Fe............................................ 45,900 4,125,263
-------------
24,571,913
-------------
INFORMATION & ENTERTAINMENT -- 7.3%
Leisure & Tourism -- 7.3%
Disney (Walt) Co. ...................................................... 201,512 14,861,510
Northwest Airlines Corp., Class A+...................................... 186,200 7,517,825
UAL Corp. .............................................................. 97,700 5,617,750
-------------
27,997,085
-------------
INFORMATION TECHNOLOGY -- 26.3%
Communication Equipment -- 0.7%
Ascend Communications, Inc.+............................................ 38,700 2,752,538
Computers & Business Equipment -- 8.4%
3Com Corp.+............................................................. 47,400 3,560,925
Cascade Communications Co.+............................................. 40,000 2,765,000
Compaq Computer Corp.+.................................................. 119,300 9,454,525
Dell Computer Corp.+.................................................... 29,500 2,997,937
Electronic Data Systems Corp. .......................................... 77,600 3,753,900
Hewlett-Packard Co. .................................................... 176,200 9,492,775
Electronics -- 4.7%
Altera Corp.+........................................................... 27,000 2,038,500
Intel Corp. ............................................................ 92,500 11,735,937
Motorola, Inc. ......................................................... 74,000 4,097,750
Software -- 10.6%
Cisco Systems, Inc.+.................................................... 252,200 17,118,075
Microsoft Corp.+........................................................ 73,700 11,561,687
Netscape Communications Corp.+.......................................... 62,700 3,503,363
Oracle Systems Corp.+................................................... 169,700 8,315,300
Telecommunications -- 1.9%
Lucent Technologies, Inc. .............................................. 87,200 4,469,000
MFS Communications, Inc.+............................................... 56,000 2,702,000
-------------
100,319,212
-------------
MATERIALS -- 0.7%
Chemicals -- 0.7%
Monsanto Co. ........................................................... 66,400 2,639,400
-------------
</TABLE>
---------------------
57
<PAGE> 58
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE -- 0.9%
Real Estate Companies -- 0.9%
Green Tree Financial Corp. ............................................. 86,000 $ 3,601,250
-------------
TOTAL COMMON STOCK (cost $309,095,983).................................. 360,728,675
-------------
<CAPTION>
WARRANTS -- 4.8%+
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY -- 4.8%
Electronics -- 4.8%
Intel Corp. 3/14/98 (cost $3,321,125)................................... 211,000 18,515,250
-------------
TOTAL INVESTMENT SECURITIES (cost $312,417,108)......................... 379,243,925
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 0.3% AMOUNT
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 0.3%
Cayman Island Time Deposit with State Street Bank & Trust Co.
2.75% due 12/02/96@................................................... $ 971,000 971,000
-------------
U.S. GOVERNMENT -- 0.0%
United States Treasury Bills 5.14% due 12/19/96@........................ 160,000 159,589
-------------
TOTAL SHORT-TERM SECURITIES (cost $1,130,589)........................... 1,130,589
-------------
TOTAL INVESTMENTS --
(cost $313,547,697) 99.7% 380,374,514
Other assets less liabilities -- 0.3 992,159
------ -------------
NET ASSETS -- 100.0% $381,366,673
====== ==============
</TABLE>
-----------------------------
+ Non-income producing securities
@ The security or a portion thereof represents collateral for the
following open futures contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
-----------------------------------------------------------------------------------------------------------
VALUE AT
NUMBER OF EXPIRATION TRADE VALUE AS OF UNREALIZED
CONTRACTS DESCRIPTION DATE DATE NOVEMBER 30, 1996 APPRECIATION
-----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
12 Long Standard & Poor's 500 Index.... December 1996 $4,152,000 $ 4,549,500 $397,500
===========
</TABLE>
See Notes to Financial Statements
- ---------------------
58
<PAGE> 59
- ---------------------
SUNAMERICA SERIES TRUST
GROWTH/PHOENIX INVESTMENT
COUNSEL PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 87.7% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 5.9%
Apparel & Textiles -- 0.2%
Footstar, Inc.+....................................................... 12,955 $ 265,578
Automotive -- 0.7%
General Motors Corp. ................................................. 25,000 1,362,500
Retail -- 5.0%
American Stores Co. .................................................. 75,000 2,990,625
CVS Corp. ............................................................ 45,000 1,850,625
Home Depot, Inc. ..................................................... 50,000 2,606,250
Price/Costco, Inc.+................................................... 80,000 1,860,000
------------
10,935,578
------------
CONSUMER STAPLES -- 7.4%
Food, Beverage & Tobacco -- 3.2%
PepsiCo, Inc. ........................................................ 43,900 1,311,512
Ralston Purina Co. ................................................... 25,000 1,912,500
Seagram Co., Ltd. .................................................... 70,000 2,861,250
Household Products -- 4.2%
Colgate-Palmolive Co. ................................................ 15,000 1,389,375
Kimberly-Clark Corp. ................................................. 30,000 2,932,500
Unilever NV........................................................... 20,000 3,462,500
------------
13,869,637
------------
ENERGY -- 13.1%
Energy Services -- 8.5%
BJ Services Co.+...................................................... 60,000 2,865,000
Burlington Resources, Inc. ........................................... 30,000 1,590,000
Diamond Offshore Drilling, Inc.+...................................... 45,000 2,868,750
Halliburton Co. ...................................................... 25,000 1,506,250
Nabors Industries, Inc. .............................................. 225,000 4,359,375
Schlumberger Ltd. .................................................... 25,000 2,600,000
Energy Sources -- 4.6%
Burlington Northern Santa Fe.......................................... 24,500 2,201,937
Elf Aquitaine ADR..................................................... 50,000 2,193,750
ENSCO International, Inc.+............................................ 30,000 1,316,250
Louisiana Land & Exploration Co. ..................................... 50,000 2,987,500
------------
24,488,812
------------
FINANCE -- 14.3%
Banks -- 1.5%
Citicorp.............................................................. 25,000 2,731,250
Financial Services -- 6.5%
American Express Co. ................................................. 40,000 2,090,000
Bankers Trust New York Corp. ......................................... 22,000 1,914,000
Equifax, Inc. ........................................................ 105,000 3,438,750
Federal National Mortgage Association................................. 50,000 2,062,500
Travelers Group, Inc. ................................................ 60,000 2,700,000
</TABLE>
---------------------
59
<PAGE> 60
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance -- 6.3%
ACE Ltd. ............................................................. 35,000 $ 2,025,625
Allstate Corp. ....................................................... 30,000 1,807,500
Everest Reinsurance Holdings, Inc. ................................... 70,000 1,968,750
General Reinsurance Group............................................. 12,000 2,025,000
Marsh & McLennan Cos. ................................................ 15,000 1,700,625
TIG Holdings, Inc. ................................................... 70,000 2,135,000
-------------
26,599,000
-------------
HEALTHCARE -- 13.3%
Drugs -- 6.3%
American Home Products Corp. ......................................... 30,000 1,927,500
Amgen, Inc.+.......................................................... 30,000 1,826,250
Bristol-Myers Squibb Co. ............................................. 25,000 2,843,750
Lilly (Eli) & Co. .................................................... 40,000 3,060,000
Warner-Lambert Co. ................................................... 30,000 2,145,000
Health Services -- 1.0%
Columbia/HCA Healthcare Corp. ........................................ 45,000 1,800,000
Medical Products -- 6.0%
Allegiance Corp. ..................................................... 12,000 271,500
Baxter International, Inc. ........................................... 60,000 2,550,000
Johnson & Johnson Co. ................................................ 65,000 3,453,125
Mallinckrodt, Inc. ................................................... 40,000 1,760,000
Medtronic, Inc. ...................................................... 25,000 1,653,125
Pharmacia & Upjohn, Inc. ............................................. 40,000 1,545,000
-------------
24,835,250
-------------
INDUSTRIAL & COMMERCIAL -- 13.6%
Aerospace & Military Technology -- 5.5%
Boeing Co. ........................................................... 20,400 2,027,250
Litton Industries, Inc.+.............................................. 45,000 2,103,750
Lockheed Martin Corp. ................................................ 40,000 3,625,000
Raytheon Co. ......................................................... 50,000 2,556,250
Business Services -- 5.5%
Cognizant Corp.+...................................................... 75,000 2,587,500
CUC International, Inc.+.............................................. 75,000 1,978,125
Pittston Brink's Group................................................ 15,000 382,500
Primark Corp.+........................................................ 50,000 1,312,500
WMX Technologies, Inc. ............................................... 110,000 3,960,000
Machinery -- 1.0%
Deere & Co. .......................................................... 40,000 1,785,000
Transportation -- 1.6%
Tidewater, Inc. ...................................................... 68,000 2,975,000
-------------
25,292,875
-------------
INFORMATION & ENTERTAINMENT -- 2.8%
Broadcasting & Media -- 1.4%
Grupo Televisa SA ADR................................................. 35,000 953,750
Time Warner, Inc. .................................................... 42,000 1,711,500
Leisure & Tourism -- 1.4%
Carnival Corp. ....................................................... 80,000 2,530,000
-------------
5,195,250
-------------
INFORMATION TECHNOLOGY -- 10.3%
Computers & Business Equipment -- 0.9%
Xerox Corp. .......................................................... 32,000 1,572,000
</TABLE>
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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Electronics -- 3.0%
ADT Ltd.+............................................................. 90,000 $ 1,845,000
Intel Corp. .......................................................... 15,000 1,903,125
Perkin-Elmer Corp. ................................................... 30,000 1,848,750
Software -- 5.6%
Cisco Systems, Inc.+.................................................. 50,000 3,393,750
Informix Corp.+....................................................... 50,000 1,187,500
Microsoft Corp.+...................................................... 12,000 1,882,500
Oracle Systems Corp.+................................................. 40,000 1,960,000
Sterling Software, Inc.+.............................................. 25,000 828,125
VeriFone, Inc.+....................................................... 37,000 1,248,750
Telecommunications -- 0.8%
Lucent Technologies, Inc. ............................................ 30,000 1,537,500
-------------
19,207,000
-------------
MATERIALS -- 6.4%
Chemicals -- 4.9%
IMC Global, Inc. ..................................................... 80,000 2,890,000
Monsanto Co. ......................................................... 70,000 2,782,500
Raychem Corp. ........................................................ 40,000 3,410,000
Metals & Minerals -- 1.5%
Potash Corp. of Saskatchewan, Inc. ................................... 36,500 2,751,188
-------------
11,833,688
-------------
UTILITIES -- 0.6%
Gas & Pipeline Utilities -- 0.6%
Transocean Offshore, Inc. ............................................ 20,000 1,205,000
-------------
TOTAL INVESTMENT SECURITIES (cost $136,132,691)....................... 163,462,090
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 12.3% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 10.6%
Abbott Laboratories, Inc. 5.25% due 12/04/96.......................... $2,390,000 2,388,954
Ameritech Capital Funding Corp. 5.25% due 12/23/96.................... 1,500,000 1,495,187
Assets Securitization Cooperative 5.27% due 12/05/96.................. 4,190,000 4,187,547
Ciesco L.P. 5.25% due 12/02/96........................................ 795,000 794,884
Ciesco L.P. 5.35% due 12/02/96........................................ 885,000 884,869
Donnelley(R.R.) & Sons Co. 5.27% due 12/09/96......................... 1,830,000 1,827,857
General Electric Capital Corp. 5.23% due 12/13/96..................... 2,905,000 2,899,936
Kimberly-Clark Corp. 5.23% due 12/11/96............................... 600,000 599,128
Receivables Capital Corp. 5.29% due 12/02/96.......................... 1,147,000 1,146,831
Vermont American Corp. 5.25% due 12/20/96............................. 3,590,000 3,580,053
-------------
19,805,246
-------------
FEDERAL AGENCY OBLIGATIONS -- 1.3%
Federal Home Loan Bank Discount Notes 5.85% due 12/02/96.............. 445,000 444,928
Federal Home Loan Mortgage Discount Notes 5.70% due 12/02/96.......... 205,000 204,967
Federal National Mortgage Association 5.23% due 12/19/96.............. 1,690,000 1,685,585
-------------
2,335,480
-------------
</TABLE>
---------------------
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<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT -- 0.4%
United States Treasury Bills 4.86% due 2/06/97........................ $ 715,000 $ 708,107
-------------
TOTAL SHORT-TERM SECURITIES (cost $22,849,259)........................ 22,848,833
-------------
TOTAL INVESTMENTS --
(cost $158,981,950) 100.0% 186,310,923
Other assets less liabilities -- 0.0 56,655
------ -------------
NET ASSETS -- 100.0% $186,367,578
====== ==============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
- ---------------------
62
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- ---------------------
SUNAMERICA SERIES TRUST
PROVIDENT GROWTH
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 96.5% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 8.2%
Apparel & Textile -- 2.6%
Gucci Group NV ADR.................................................... 7,200 $ 528,300
NIKE, Inc., Class B .................................................. 35,800 2,036,125
Tommy Hilfiger Corp.+................................................. 29,200 1,576,800
Housing -- 0.3%
American Standard Cos., Inc.+......................................... 14,600 556,625
Retail -- 5.3%
CVS Corp. ............................................................ 22,700 933,538
Home Depot, Inc. ..................................................... 25,900 1,350,037
Kohl's Corp.+......................................................... 34,600 1,379,675
Price/Costco, Inc.+................................................... 60,300 1,401,975
Safeway, Inc.+........................................................ 45,600 1,852,500
Staples, Inc.+........................................................ 47,000 928,250
Walgreen Co. ......................................................... 17,200 718,100
-------------
13,261,925
-------------
CONSUMER STAPLES -- 2.3%
Household Products -- 2.3%
Estee Lauder Cos., Inc., Class A...................................... 7,400 370,000
Gillette Co. ......................................................... 44,600 3,289,250
-------------
3,659,250
-------------
ENERGY -- 2.5%
Energy Services -- 1.8%
Schlumberger Ltd. .................................................... 16,200 1,684,800
Tosco Corp. .......................................................... 15,700 1,195,163
Energy Sources -- 0.7%
Enron Corp. .......................................................... 24,800 1,134,600
-------------
4,014,563
-------------
FINANCE -- 17.9%
Financial Services -- 15.1%
Associates First Capital Corp. Class A................................ 41,100 1,988,213
Federal Home Loan Mortgage Corp. ..................................... 17,900 2,045,075
Federal National Mortgage Association................................. 164,500 6,785,625
First Data Corp. ..................................................... 153,650 6,126,794
First USA, Inc. ...................................................... 72,000 2,367,000
MBNA Corp. ........................................................... 116,100 4,687,537
Synovus Financial Corp. .............................................. 6,400 209,600
Insurance -- 2.8%
American International Group, Inc. ................................... 23,300 2,679,500
MGIC Investment Corp. ................................................ 23,500 1,759,562
-------------
28,648,906
-------------
</TABLE>
---------------------
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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 20.3%
Drugs -- 12.0%
Amgen, Inc.+.......................................................... 40,500 $ 2,465,437
Cardinal Health, Inc. ................................................ 26,800 2,241,150
Elan Corp. PLC ADR+................................................... 40,200 1,195,950
Lilly (Eli) & Co. .................................................... 34,200 2,616,300
Merck & Co., Inc. .................................................... 38,800 3,220,400
Pfizer, Inc. ......................................................... 83,000 7,438,875
Health Services -- 4.3%
Columbia/HCA Healthcare Corp. ........................................ 24,900 996,000
HEALTHSOUTH Corp.+.................................................... 61,200 2,302,650
Oxford Health Plans, Inc.+............................................ 62,900 3,648,200
Medical Products -- 4.0%
Boston Scientific Corp.+.............................................. 31,200 1,821,300
Medtronic, Inc. ...................................................... 68,500 4,529,563
-------------
32,475,825
-------------
INDUSTRIAL & COMMERCIAL -- 6.0%
Business Services -- 6.0%
AccuStaff, Inc.+...................................................... 33,100 670,275
CUC International, Inc.+.............................................. 76,350 2,013,731
Fluor Corp. .......................................................... 13,700 931,600
Republic Industries, Inc.+............................................ 65,100 2,172,713
Service Corp. International........................................... 48,800 1,470,100
Tyco International Ltd. .............................................. 42,900 2,348,775
-------------
9,607,194
-------------
INFORMATION & ENTERTAINMENT -- 8.4%
Broadcasting & Media -- 1.7%
British Sky Broadcast Group PLC ADR................................... 51,500 2,690,875
Leisure & Tourism -- 6.7%
Circus Circus Enterprises, Inc.+...................................... 30,000 1,095,000
Disney (Walt) Co. .................................................... 35,834 2,642,757
HFS, Inc.+............................................................ 73,500 4,759,125
Mirage Resorts, Inc.+................................................. 92,900 2,241,213
-------------
13,428,970
-------------
INFORMATION TECHNOLOGY -- 29.2%
Communication Equipment -- 5.4%
ADC Telecommunications, Inc.+......................................... 36,600 1,326,750
Ascend Communications, Inc.+.......................................... 25,800 1,835,025
Ericsson (L.M.) Telephone Co., Class B ADR............................ 177,100 5,467,963
Computers & Business Equipment -- 4.4%
Automatic Data Processing, Inc. ...................................... 16,900 724,588
Ceridian Corp.+....................................................... 27,100 1,304,187
Computer Sciences Corp.+.............................................. 30,700 2,413,787
Danka Business Systems PLC ADR........................................ 44,600 1,873,200
Electronic Data Systems Corp. ........................................ 16,300 788,513
Electronics -- 1.3%
Analog Devices, Inc.+................................................. 18,725 601,541
Thermo Electron Corp. ................................................ 41,150 1,491,687
Software -- 14.0%
Cisco Systems, Inc.+.................................................. 60,600 4,113,225
Computer Associates International, Inc. .............................. 70,550 4,638,662
Microsoft Corp.+...................................................... 53,000 8,314,375
Oracle Systems Corp.+................................................. 76,075 3,727,675
</TABLE>
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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Software (continued)
Paychex, Inc. ........................................................ 29,550 $ 1,580,925
Telecommunications -- 4.1%
Andrew Corp.+......................................................... 15,775 912,978
Asia Satellite Telecom Holdings ADR+.................................. 7,600 192,850
Lucent Technologies, Inc. ............................................ 56,400 2,890,500
SunGard Data Systems, Inc.+........................................... 25,400 1,066,800
WorldCom, Inc.+....................................................... 63,400 1,466,125
-------------
46,731,356
-------------
MATERIALS -- 1.4%
Chemicals -- 1.0%
Monsanto Co. ......................................................... 40,000 1,590,000
Forest Products -- 0.4%
Alco Standard Corp. .................................................. 12,400 641,700
-------------
2,231,700
-------------
UTILITIES -- 0.3%
Electric Utilities -- 0.3%
AES Corp. ............................................................ 9,800 478,975
-------------
TOTAL INVESTMENT SECURITIES (cost $109,203,171)....................... 154,538,664
-------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 4.4% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 4.4%
Agreement with State Street Bank & Trust Co., bearing interest of
4.75% dated 11/29/96, to be repurchased 12/02/96 in the amount of
$7,000,770 and collateralized by $7,005,000 U.S. Treasury Bonds
6.50% due 11/15/26 (cost $6,998,000)................................ $6,998,000 6,998,000
-------------
TOTAL INVESTMENTS --
(cost $116,201,171) 100.9% 161,536,664
Liabilities in excess of other assets -- (0.9) (1,463,619)
------ -------------
NET ASSETS -- 100.0% $160,073,045
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
65
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- ---------------------
SUNAMERICA SERIES TRUST
GLOBAL EQUITIES PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 95.5% Shares Value
----------------------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRALIA -- 0.9%
Coca-Cola Amatil Ltd. (Consumer Staples)............................. 39,863 $ 450,349
Mayne Nickless Ltd. (Industrial & Commercial)........................ 37,000 240,925
Qantas Airways Ltd. (Industrial & Commercial)........................ 47,680 74,124
Western Mining Corp. Holdings Ltd. ADR (Materials)+.................. 72,754 461,892
Woolworths Ltd. (Consumer Discretionary)+............................ 355,218 884,720
------------
2,112,010
------------
BELGIUM -- 0.3%
Delhaize Le-Lion SA (Consumer Discretionary)+........................ 5,700 334,554
Kredietbank NV (Finance)............................................. 1,480 485,705
------------
820,259
------------
BERMUDA -- 0.1%
First Pacific Co., Ltd. (Finance).................................... 242,347 336,941
------------
CANADA -- 0.4%
Renaissance Energy Ltd. (Energy)+.................................... 29,400 1,044,238
------------
DENMARK -- 0.8%
BG Bank (Finance)+................................................... 5,700 252,439
Den Danske Bank (Finance)............................................ 13,300 1,004,276
ISS International Service Systems A/S (Industrial & Commercial)+..... 22,000 608,488
------------
1,865,203
------------
FINLAND -- 0.5%
Kesko (Consumer Discretionary)+...................................... 12,070 160,760
Orion-yhtyma OY (Healthcare)+........................................ 21,000 704,911
UPM-Kymmene OY (Materials)+.......................................... 21,900 436,345
------------
1,302,016
------------
FRANCE -- 3.8%
Alcatel Alsthom Compagnie General d'Electricite (Information
Technology)........................................................ 1,930 175,421
Assurance General de France (Finance)................................ 27,210 890,714
Bouygues SA (Consumer Discretionary)................................. 7,905 879,208
Eaux (cie Generale) (Industrial & Commercial)........................ 5,220 643,531
Elf Aquitaine SA (Energy)............................................ 15,070 1,315,791
GTM-Entrepose (Industrial & Commercial).............................. 6,625 329,107
Legris Industries SA (Industrial & Commercial)+...................... 13,150 568,915
Pechiney SA (Materials).............................................. 10,058 404,530
Salomon SA (Consumer Discretionary).................................. 5,000 440,292
Sefimeg (Real Estate)................................................ 4,630 342,123
Simco (Real Estate)+................................................. 113 9,518
Simco registered (Real Estate)....................................... 3,550 316,889
Societe de Immeubles (Real Estate)................................... 5,195 318,236
Total SA, Series B (Energy).......................................... 18,030 1,441,696
Unibail SA (Finance)................................................. 5,730 546,806
Union Immeubles de France (Real Estate).............................. 3,300 263,997
USINOR SACILOR (Materials)........................................... 33,200 496,684
------------
9,383,458
------------
</TABLE>
- ---------------------
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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
GERMANY -- 2.3%
Bayer AG (Materials)................................................. 36,750 $ 1,478,745
Deutsche Telekom (Information Technology)............................ 14,100 306,641
Lufthansa AG (Industrial & Commercial)............................... 48,000 617,905
Preussag AG (Materials)+............................................. 1,300 305,117
Schmalbach-Lubeca AG (Materials)+.................................... 3,700 814,284
Sudzucker AG (Consumer Staples)...................................... 1,403 647,637
Veba AG (Utilities).................................................. 23,470 1,372,555
Volkswagen AG (Consumer Discretionary)+.............................. 550 220,450
------------
5,763,334
------------
HONG KONG -- 1.1%
Asia Satellite Telecom Holdings Ltd. (Information Technology)+....... 15,000 38,509
CITIC Pacific Ltd. (Information & Entertainment)..................... 74,000 385,696
Dao Heng Bank Group (Finance)........................................ 87,000 412,946
Guangshen Railway Co., Ltd. ADR (Industrial & Commercial)+........... 11,000 217,250
Hong Kong & China Gas Co., Ltd. (Utilities)+......................... 85,680 170,097
Hysan Development Co., Ltd. (Real Estate)............................ 46,000 175,802
New World Development Co., Ltd. (Real Estate)........................ 28,089 189,815
Sun Hung Kai Properties Ltd. (Real Estate)........................... 17,000 211,071
Swire Pacific Ltd., Class A (Industrial & Commercial)................ 35,000 331,576
Television Broadcasting Ltd. (Information & Entertainment)........... 100,000 384,118
Wharf Holdings Ltd. (Real Estate).................................... 48,000 248,319
------------
2,765,199
------------
INDIA -- 0.4%
Bajaj Auto GDR (Consumer Discretionary).............................. 15,400 431,200
Bank of India GDR (Finance)+*........................................ 22,000 358,050
Industrial Credit & Investment Corp. of India Ltd. GDR (Finance)+*... 24,000 207,000
Industrial Credit & Investment Corp. of India Ltd. GDR (Finance)+.... 2,000 17,250
------------
1,013,500
------------
INDONESIA -- 0.6%
Hanjaya Mandala Sampoerna alien (Consumer Staples)................... 144,000 733,817
Perusahaan Persero Part Telekom ADR alien (Utilities)................ 6,000 197,250
PT Indosat alien (Information Technology)+........................... 188,000 519,104
PT Telekomunikasi Indonesia alien (Information Technology)+.......... 59,000 97,495
------------
1,547,666
------------
ITALY -- 1.2%
ENI SpA (Energy)..................................................... 164,900 868,038
Istituto Nazionale Delle Asazioni SpA (Finance)+..................... 471,000 655,569
Magneti Marelli SpA (Industrial & Commercial)+....................... 203,300 235,358
Saipem SpA (Energy)+................................................. 72,000 332,940
Telecom Italia SpA (Finance)+........................................ 372,400 876,987
------------
2,968,892
------------
JAPAN -- 19.5%
Amano Corp. (Industrial & Commercial)................................ 48,000 543,635
Asahi Glass Co., Ltd. (Materials).................................... 93,000 947,147
Bank Of Tokyo-Mitsubishi (Finance)................................... 55,300 1,131,247
Canon, Inc. (Information Technology)................................. 52,000 1,095,698
Chiba Bank Ltd. (Finance)............................................ 30,000 227,305
Dai Nippon Printing Co., Ltd. (Industrial & Commercial).............. 35,000 639,157
Daifuku Co., Ltd. (Industrial & Commercial).......................... 38,000 443,723
Daito Trust Construction Co. (Industrial & Commercial)............... 57,000 745,654
Daiwa Securities Co., Ltd. (Finance)................................. 23,000 248,376
DDI Corp. (Healthcare)............................................... 423 3,026,734
East Japan Railway (Industrial & Commercial)......................... 133 609,535
Eisai Co. Ltd. (Healthcare).......................................... 33,250 653,907
Fuji Photo Film Co., Ltd. (Materials)................................ 11,000 344,776
</TABLE>
---------------------
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (continued)
Furukawa Co., Ltd. (Materials)....................................... 74,000 $ 288,464
Hirose Electric Co., Ltd. (Information Technology)................... 18,000 1,090,430
Honda Motor Co., Ltd. (Consumer Discretionary)....................... 19,000 560,492
House Food Corp. (Consumer Staples).................................. 17,000 289,552
Hoya Corp. (Healthcare).............................................. 32,000 1,199,649
Ishikawajima-Harima Heavy Industries Co. (Industrial & Commercial)... 64,000 297,805
Ito-Yokado Co. (Consumer Discretionary).............................. 10,000 504,829
Japan Securities Finance Co., Ltd. (Finance)......................... 53,000 758,472
Japan Tobacco, Inc. (Consumer Staples)............................... 69 491,299
Kamigumi Co., Ltd. (Industrial & Commercial)......................... 37,000 280,992
Kandenko Co. (Consumer Discretionary)................................ 38,400 367,480
Kao Corp. (Consumer Staples)......................................... 67,000 776,471
Kirin Brewery Co., Ltd. (Consumer Staples)........................... 32,000 323,090
Kokuyo Co., Ltd. (Industrial & Commercial)........................... 19,000 495,435
Kuraray Co., Ltd. (Materials)........................................ 67,000 647,059
Kyocera Corp. (Information Technology)............................... 8,000 514,135
Long-Term Credit Bank of Japan Ltd. (Finance)........................ 1,000 6,321
Mabuchi Motor Co., Ltd. (Consumer Discretionary)..................... 3,000 150,658
Maeda Corp. (Industrial & Commercial)................................ 11,000 134,241
Matsushita Electric Industrial Co., Ltd. (Information Technology).... 72,000 1,245,303
Matsushita Electric Works Ltd. (Industrial & Commercial)............. 48,000 446,708
Mitsubishi Heavy Industrial Ltd. (Industrial & Commercial)........... 70,000 571,554
Mitsubishi Materials Corp. (Materials)............................... 40,000 179,104
Mitsubishi Oil Co., Ltd. (Utilities)................................. 59,000 391,089
Mitsui Marine & Fire Co., Ltd. (Finance)............................. 75,000 482,660
Mitsui Trust & Banking Co. (Finance)................................. 136,000 1,301,492
National House Industrial Co., Ltd. (Industrial & Commercial)........ 36,000 515,189
NGK Insulators Ltd. (Industrial & Commercial)........................ 26,000 264,794
Nikko Securities Co., Ltd. (Finance)................................. 49,000 456,014
Nippon Express Co., Ltd. (Industrial & Commercial)................... 59,000 449,622
Nippon Light Metal Co., Ltd. (Materials)............................. 62,000 284,688
Nippon Steel Corp. (Materials)....................................... 146,000 440,948
Nisshin Steel Co., Ltd. (Materials).................................. 269,000 824,241
NKK Corp. (Materials)+............................................... 166,000 408,077
Nomura Securities International, Inc. (Finance)...................... 53,000 893,415
Osaka Gas Co., Ltd. (Utilities)...................................... 120,000 369,798
Rohm Co. (Information Technology).................................... 38,000 2,335,382
Sankyo Co., Ltd. (Healthcare)........................................ 5,000 133,889
Santen Pharmaceutical Co. (Healthcare)+.............................. 10,200 205,970
Seven-Eleven Japan Co., Ltd. (Consumer Discretionary)................ 33,400 1,991,097
Shimano, Inc. (Industrial & Commercial).............................. 27,000 457,507
Shimizu Construction Co. (Consumer Discretionary).................... 48,000 400,351
Shiseido Co., Ltd. (Healthcare)...................................... 41,000 493,152
Sony Music Entertainment, Inc. (Information & Entertainment)......... 6,000 246,532
Sumitomo Electric Industries Ltd. (Industrial & Commercial).......... 36,000 505,707
Sumitomo Marine & Fire Insurance Co., Ltd. (Finance)................. 61,000 433,802
Sumitomo Realty & Development Co., Ltd. (Real Estate)................ 76,000 527,129
Sumitomo Rubber Industries Ltd. (Industrial & Commercial)............ 38,000 270,904
Taisho Pharmaceutical Co., Ltd. (Healthcare)......................... 24,000 535,206
Takeda Chemical Industries Ltd. (Healthcare)......................... 20,000 391,572
TDK Corp. (Information Technology)................................... 26,000 1,675,505
Toagosei Co., Ltd. (Materials)....................................... 29,000 124,249
Tokai Bank Ltd. (Finance)............................................ 57,000 655,575
Tokyo Electric Power Co., Inc. (Utilities)........................... 25,100 566,348
Tokyo Gas Co., Ltd. (Utilities)...................................... 258,000 761,089
Tokyo Steel Manufacturing Co., Ltd. (Materials)...................... 66,000 973,485
Toyo Kanetsu K.K. (Energy)........................................... 46,000 185,777
Toyota Motor Corp. (Consumer Discretionary).......................... 81,000 2,211,677
Ube Industries Ltd. (Materials)...................................... 36,000 112,520
</TABLE>
- ---------------------
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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN (continued)
Ushio, Inc. (Consumer Staples)+...................................... 43,000 $ 468,130
Yakult Honsha Co. (Consumer Staples)................................. 30,000 329,236
Yamanouchi Pharmaceutical Co., Ltd. (Healthcare)..................... 43,000 875,856
Yamatake-Honeywell (Information Technology).......................... 26,000 422,300
Yamazaki Baking Co. (Consumer Staples)............................... 19,000 303,600
------------
47,952,011
------------
KOREA -- 0.5%
Hyundai Motor Co. GDR (Consumer Discretionary)....................... 1,000 10,375
Korea Electric Power Corp. (Utilities)............................... 7,000 223,777
Korea Electric Power Corp. ADR (Utilities)........................... 3,400 59,925
Korea Mobile Telecommunications ADR (Information Technology)......... 58,300 757,900
Pohang Iron & Steel Co., Ltd. ADR (Materials)........................ 11,000 221,375
------------
1,273,352
------------
MALAYSIA -- 0.8%
AMMB Holdings Bhd (Finance).......................................... 54,000 429,521
Malakoff Bhd (Industrial & Commercial)............................... 61,000 277,602
Malayan Banking Bhd (Finance)(1)..................................... 30,000 296,795
Petronas Gas Bhd (Energy)............................................ 70,000 285,318
Resorts World Bhd (Information & Entertainment)...................... 116,000 582,984
------------
1,872,220
------------
NETHERLANDS -- 2.2%
Akzo Nobel NV (Materials)............................................ 9,910 1,315,548
Apothekers Cooperative Opg (Healthcare)+............................. 7,150 189,915
CSM NV (Industrial & Commercial)+.................................... 3,000 161,805
Fortis NV (Finance).................................................. 41,900 1,397,234
ING Groep NV (Finance)............................................... 39,000 1,366,119
SGS Thomson Microelectronics NV (Information Technology)+............ 4,700 310,856
Vendex International NV (Consumer Discretionary)..................... 17,200 747,132
------------
5,488,609
------------
NEW ZEALAND -- 0.3%
Fletcher Challenge Ltd. (Industrial & Commercial).................... 82,319 135,832
Lion Nathan Ltd. (Consumer Staples).................................. 105,000 269,595
Telecommunications Corp. of New Zealand (Utilities).................. 86,000 453,243
------------
858,670
------------
NORWAY -- 0.6%
Bergesen D.Y. AS (Industrial & Commercial)........................... 30,300 694,001
Orkla AS (Industrial & Commercial)+.................................. 5,600 373,450
Schibsted AS (Information & Entertainment)+.......................... 11,600 211,468
Unitor AS (Industrial & Commercial)+................................. 6,580 83,044
------------
1,361,963
------------
PHILIPPINES -- 0.2%
Manila Electric Co. (Utilities)...................................... 42,575 315,838
Philippine Commerce International Bank (Finance)+.................... 4,470 59,519
------------
375,357
------------
SINGAPORE -- 0.7%
Overseas Chinese Banking Corp., Ltd. alien (Finance)+................ 50,600 613,333
Overseas Union Bank Ltd. alien (Finance)+............................ 58,000 425,954
Singapore Airlines Ltd. alien (Information & Entertainment).......... 8,000 75,294
Singapore Press Holdings Ltd. alien (Information & Entertainment).... 33,400 631,087
------------
1,745,668
------------
SPAIN -- 0.8%
Autopistas Concesionaria Espana SA (Industrial & Commercial)......... 26,300 318,751
Banco de Santander SA (Finance)+..................................... 6,100 330,570
</TABLE>
---------------------
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
SPAIN (continued)
Repsol SA (Energy)................................................... 15,500 $ 573,742
Tabacalera SA (Consumer Staples)..................................... 13,300 521,568
Viscofan Envoltura (Consumer Staples)+............................... 11,800 182,183
------------
1,926,814
------------
SWEDEN -- 1.0%
Astra AB (Healthcare)................................................ 18,600 891,834
Electrolux AB (Consumer Staples)..................................... 5,700 333,991
Incentive AB (Consumer Discretionary)+............................... 2,800 185,538
Sparbanken Sverige (Finance)+........................................ 15,500 256,195
Stora Kopparbergs (Materials)........................................ 51,700 700,563
------------
2,368,121
------------
SWITZERLAND -- 2.3%
Adecco SA (Industrial & Commercial)+................................. 1,120 288,700
Baloise Holdings (Finance)........................................... 354 790,288
Ciba-Geigy AG (Materials)............................................ 1,510 1,868,531
Nestle SA (Consumer Staples)......................................... 1,090 1,183,237
Sandoz AG (Healthcare)............................................... 590 686,183
Schindler Holding AG (Industrial & Commercial)+...................... 326 342,381
Swissair AG (Industrial & Commercial)+............................... 376 285,570
Zurich Versicherun (Finance)+........................................ 1,190 337,783
------------
5,782,673
------------
TAIWAN, PROVINCE OF CHINA -- 0.1%
Advanced Semiconductor Materials International NV GDR (Information
Technology)+....................................................... 35,080 298,180
------------
THAILAND -- 0.2%
Bangkok Bank PLC alien (Finance)..................................... 12,000 137,194
Thai Farmers Bank alien (Finance).................................... 42,000 358,489
------------
495,683
------------
UNITED KINGDOM -- 11.6%
Anglian Water PLC (Industrial & Commercial).......................... 79,800 781,498
B.A.T. Industries PLC (Industrial & Commercial)+..................... 91,700 732,305
BAA PLC (Industrial & Commercial).................................... 115,000 947,377
Barclays PLC (Finance)+.............................................. 87,000 1,496,318
Bass PLC (Consumer Staples)+......................................... 53,300 702,094
British Aerospace PLC (Industrial & Commercial)...................... 37,500 729,447
British Petroleum Co. PLC (Energy)................................... 116,200 1,343,587
British Sky Broadcasting Group PLC (Information & Entertainment)..... 80,300 700,667
British Telecommunications PLC (Information Technology).............. 147,700 934,920
BTR PLC (Industrial & Commercial).................................... 270,600 1,087,313
Cadbury Schweppes PLC (Consumer Staples)............................. 86,400 742,999
Compass Group (Information & Entertainment)+......................... 51,900 529,209
General Electric Co. (Industrial & Commercial)....................... 122,000 764,038
Glaxo Wellcome PLC (Healthcare)...................................... 57,600 947,330
Grand Metropolitan PLC (Information & Entertainment)................. 95,700 747,355
Hanson PLC (Industrial & Commercial)................................. 338,000 451,765
Hepworth PLC (Industrial & Commercial)............................... 74,000 342,132
Holliday Chemical Holdings PLC (Finance)............................. 167,860 352,766
Ladbroke Group PLC (Information & Entertainment)..................... 200,000 689,307
National Grid Group PLC (Utilities)+................................. 286,000 937,626
National Westminster Bank PLC (Finance)+............................. 60,700 706,194
Pearson PLC (Information & Entertainment)............................ 47,900 591,905
Rank Group PLC (Industrial & Commercial)+............................ 144,700 1,058,247
Reed International PLC (Information & Entertainment)................. 51,856 1,004,775
Reuters Holdings PLC (Industrial & Commercial)+...................... 82,000 998,117
Rugby Group PLC (Industrial & Commercial)............................ 273,200 440,942
</TABLE>
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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (continued)
Sainsbury (J.) PLC (Consumer Discretionary).......................... 147,600 $ 931,806
Sears PLC (Consumer Discretionary)................................... 458,100 716,263
Shell Transport & Trading (Energy)+.................................. 29,220 485,362
Siebe PLC (Industrial & Commercial)+................................. 42,900 684,828
Smithkline Beecham (Healthcare)...................................... 57,700 795,461
Tesco PLC (Consumer Discretionary)................................... 123,000 702,886
TI Group PLC (Industrial & Commercial)+.............................. 101,300 944,365
Tomkins PLC (Industrial & Commercial)+............................... 134,599 562,338
United Assurance Group PLC (Finance)+................................ 73,000 586,037
Vodafone Group PLC (Information Technology).......................... 147,900 640,287
Wimpey (George) PLC (Consumer Discretionary)......................... 330,000 696,284
-------------
28,506,150
-------------
UNITED STATES -- 42.3%
3Com Corp. (Information Technology)+................................. 19,300 1,449,912
Abbott Laboratories (Healthcare)..................................... 39,300 2,190,975
AirTouch Communications, Inc. (Information Technology)+.............. 37,000 948,125
AlliedSignal, Inc. (Industrial & Commercial)......................... 26,200 1,919,150
Altera Corp. (Information Technology)+............................... 13,700 1,034,350
American Express Co. (Finance)+...................................... 15,100 788,975
American International Group, Inc. (Finance)......................... 19,400 2,231,000
Amgen, Inc. (Healthcare)+............................................ 32,300 1,966,262
Atmel Corp. (Information Technology)+................................ 21,300 700,238
Boston Scientific Corp. (Healthcare)+................................ 18,000 1,050,750
Bristol-Myers Squibb Co. (Healthcare)................................ 16,600 1,888,250
Campbell Soup Co. (Consumer Staples)................................. 21,000 1,735,125
Carnival Corp. (Information & Entertainment)......................... 30,300 958,238
Centocor, Inc. (Industrial & Commercial)+............................ 14,100 389,513
Chase Manhattan Corp. (Finance)...................................... 19,600 1,852,200
Cisco Systems, Inc. (Information Technology)+........................ 29,000 1,968,375
Colgate-Palmolive Co. (Consumer Staples)............................. 28,600 2,649,075
Columbia/HCA Healthcare Corp. (Healthcare)........................... 42,000 1,680,000
Compaq Computer Corp. (Information Technology)+...................... 24,300 1,925,775
Cox Communications, Inc., Class A (Information & Entertainment)+..... 28,200 578,100
Crown, Cork & Seal, Inc. (Materials)................................. 18,900 1,001,700
Dean Witter, Discover & Co. (Finance)................................ 15,000 1,025,625
Dell Computer Corp. (Information Technology)+........................ 14,000 1,422,750
Disney (Walt) Co. (Information & Entertainment)...................... 25,000 1,843,750
Electronic Data Systems Corp. (Information Technology)............... 16,500 798,188
Enron Corp. (Energy)................................................. 7,500 343,125
Exxon Corp. (Energy)................................................. 18,000 1,703,250
Federated Department Stores, Inc. (Consumer Discretionary)+.......... 33,400 1,139,775
First Chicago Corp. (Finance)........................................ 31,142 1,829,592
First Data Corp. (Finance)........................................... 22,000 877,250
First Union Corp. (Finance).......................................... 11,800 901,225
FPL Group, Inc. (Utilities)+......................................... 27,000 1,245,375
General Electric Co. (Industrial & Commercial)....................... 33,700 3,504,800
General Reinsurance Group (Finance)+................................. 3,300 556,875
Gillette Co. (Consumer Staples)...................................... 40,300 2,972,125
Hewlett-Packard Co. (Information Technology)......................... 11,900 641,113
Intel Corp. (Information Technology)................................. 34,400 4,364,500
International Business Machines Corp. (Information Technology)....... 8,100 1,290,937
Kohl's Corp. (Consumer Discretionary)+............................... 21,600 861,300
Kroger Co. (Consumer Discretionary)+................................. 30,300 1,397,587
La Quinta Inns, Inc. (Information & Entertainment)................... 30,600 589,050
Lowe's Cos., Inc. (Consumer Discretionary)........................... 11,400 463,125
Lucent Technologies, Inc. (Information Technology)+.................. 10,176 521,520
MBNA Corp. (Finance)................................................. 25,700 1,037,638
McDonald's Corp. (Consumer Staples).................................. 17,100 799,425
</TABLE>
---------------------
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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (continued)
Medtronic, Inc. (Healthcare)+........................................ 13,800 $ 912,525
Merck & Co., Inc. (Healthcare)....................................... 57,300 4,755,900
Merrill Lynch & Co., Inc. (Finance).................................. 18,560 1,489,440
Microsoft Corp. (Information Technology)+............................ 12,200 1,913,875
Monsanto Co. (Materials)............................................. 56,600 2,249,850
Morgan Stanley Group, Inc. (Finance)................................. 12,600 757,575
Morton International, Inc. (Materials)............................... 24,800 1,001,300
NationsBank Corp. (Finance).......................................... 5,440 563,720
Netscape Communications Corp. (Information Technology)+.............. 9,900 553,163
Oracle Systems Corp. (Information Technology)+....................... 44,200 2,165,800
Oxford Health Plans, Inc. (Healthcare)+.............................. 10,900 632,200
Pacificare Health Systems, Inc., Class A (Healthcare)+............... 3,500 276,500
Pacificare Health Systems, Inc., Class B (Healthcare)+............... 4,600 381,800
PepsiCo, Inc. (Consumer Staples)..................................... 42,900 1,281,637
Pfizer, Inc. (Healthcare)............................................ 28,000 2,509,500
Philip Morris Cos., Inc. (Consumer Staples).......................... 26,400 2,722,500
PMI Group, Inc. (Finance)............................................ 18,400 1,067,200
Price/Costco, Inc. (Consumer Discretionary)+......................... 34,200 795,150
Procter & Gamble Co. (Consumer Staples).............................. 21,300 2,316,375
RJR Nabisco Holdings Corp. (Consumer Staples)........................ 17,400 556,800
Schering-Plough Corp. (Healthcare)................................... 26,200 1,866,750
Sears, Roebuck & Co. (Consumer Discretionary)........................ 25,600 1,273,600
Solectron Corp. (Information Technology)+............................ 5,700 333,450
Sunbeam Corp. (Consumer Staples)..................................... 47,700 1,317,712
Tele-Communications Liberty Media Group (Information &
Entertainment)+.................................................... 33,700 842,500
Tele-Communications TCI Group, Series A (Information &
Entertainment)+.................................................... 29,000 391,500
Transocean Offshore, Inc. (Energy)+.................................. 5,000 301,250
Travelers Group, Inc. (Finance)...................................... 61,067 2,748,000
Tyco International Ltd. (Industrial & Commercial).................... 22,500 1,231,875
United States Industries, Inc. (Consumer Staples)+................... 21,200 625,400
Wendy's International, Inc. (Consumer Staples)....................... 44,400 949,050
Whitman Corp. (Industrial & Commercial).............................. 21,000 483,000
-------------
104,302,885
-------------
TOTAL COMMON STOCK (cost $205,444,177)............................... 235,531,072
-------------
<CAPTION>
PREFERRED STOCK -- 1.2%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
BRAZIL -- 0.1%
Dixie Toga SA (Industrial & Commercial).............................. 156,323 127,116
Klabin Fabricadora (Materials)....................................... 127,525 122,217
-------------
249,333
-------------
FINLAND -- 0.3%
Nokia Corp. (Information Technology)................................. 10,900 604,706
-------------
GERMANY -- 0.8%
Henkel KGAA (Consumer Staples)....................................... 20,760 1,033,884
Hornbach Holding AG (Consumer Discretionary)......................... 8,710 574,777
KSB Kl Schanz Beck (Finance)......................................... 3,210 417,398
-------------
2,026,059
-------------
TOTAL PREFERRED STOCK (cost $2,696,723).............................. 2,880,098
-------------
</TABLE>
- ---------------------
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<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(DENOMINATED
IN LOCAL
BONDS & NOTES -- 0.3% CURRENCY) VALUE
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
JAPAN -- 0.3%
Sumitomo Bank Ltd. 0.75% 2001 (Finance) (cost $622,397).............. 68,000,000 $ 648,507
-------------
<CAPTION>
WARRANTS -- 0.0%+ SHARES
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HONG KONG -- 0.0%
Hong Kong & China Gas Co., Ltd. (Utilities) 9/30/97.................. 8,640 5,448
Hysan Development Co., Ltd. (Real Estate) 4/30/98.................... 2,750 2,098
-------------
7,546
-------------
MALAYSIA -- 0.0%
Development & Commercial Bank Holdings Bhd (Finance)(1) 12/27/99..... 32,000 50,400
TA Enterprise Bhd (Finance) 11/22/98................................. 50,000 40,364
-------------
90,764
-------------
THAILAND -- 0.0%
Thai Farmers Bank alien (Finance) 9/15/02............................ 2,375 2,720
-------------
TOTAL WARRANTS (cost $7,413)......................................... 101,030
-------------
TOTAL INVESTMENT SECURITIES (cost $208,770,710)...................... 239,160,707
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 4.4% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 4.4%
Cayman Island Time Deposit with State Street Bank & Trust Co.
4.88% due 12/02/96 (cost $10,826,000).............................. $10,826,000 10,826,000
-------------
TOTAL INVESTMENTS --
(cost $219,596,710) 101.4% 249,986,707
Liabilities in excess of other assets -- (1.4) (3,504,701)
------ -------------
NET ASSETS -- 100.0% $246,482,006
====== ==============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
(1) Fair valued security; see Note 2
ADR -- American Depositary Receipt
GDR -- Global Depositary Receipt
See Notes to Financial Statements
---------------------
73
<PAGE> 74
- ---------------------
SUNAMERICA SERIES TRUST
INTERNATIONAL DIVERSIFIED
EQUITIES PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 92.2% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRALIA -- 2.3%
Amcor Holdings Ltd. (Materials)...................................... 15,900 $ 97,968
Australian National Industries Ltd. (Materials)...................... 20,100 20,777
Boral Ltd. (Industrial & Commercial)................................. 26,067 68,106
Brambles Industries Ltd. (Industrial & Commercial)................... 6,300 110,247
Broken Hill Proprietary Co. (Materials).............................. 44,700 655,619
Burns Philp & Co., Ltd. (Consumer Staples)........................... 13,900 24,324
Coca-Cola Amatil Ltd. (Consumer Staples)............................. 12,000 135,569
Coles Myer Ltd. (Consumer Discretionary)............................. 32,100 119,924
CRA Ltd. (Materials)................................................. 7,500 125,204
CSR Ltd. (Industrial & Commercial)................................... 25,700 84,091
Fosters Brewing Group Ltd. (Consumer Staples)........................ 57,600 107,361
General Property Trust (Real Estate)................................. 20,300 40,977
Gio Australia Holdings Ltd. (Finance)................................ 11,600 31,724
Goodman Fielder Wattie Ltd. (Consumer Staples)....................... 32,614 41,411
Highlands Gold Ltd. (Materials)+..................................... 5,459 3,288
ICI Australia Ltd. (Materials)....................................... 8,200 84,096
Lend Lease Corp., Ltd. (Real Estate)................................. 6,822 126,601
M.I.M. Holdings Ltd. (Materials)..................................... 40,030 57,018
National Australia Bank Ltd. (Finance)............................... 34,149 425,264
Newcrest Mining Ltd. (Materials)..................................... 7,931 29,049
News Corp., Ltd. (Information & Entertainment)....................... 45,814 243,874
Normandy Mining Ltd. (Materials)..................................... 39,222 52,675
North Ltd. (Materials)............................................... 18,450 55,263
Pacific Dunlop Ltd. (Industrial & Commercial)........................ 26,100 59,907
Pioneer International Ltd. (Consumer Staples)........................ 24,700 68,354
Renison Goldfields Consolidated Ltd. (Materials)..................... 5,722 24,777
Santos Ltd. (Energy)................................................. 15,700 63,894
Sons Of Gwalia Ltd. (Materials)...................................... 3,400 18,541
Southcorp Holdings Ltd. (Industrial & Commercial).................... 19,243 63,277
TABCORP. Holdings Ltd. (Information & Entertainment)................. 10,300 47,451
TNT Ltd. (Industrial & Commercial)+.................................. 8,400 16,546
Western Mining Corp. Holdings Ltd. (Materials)....................... 25,365 161,035
Westfield Trust (Real Estate)........................................ 24,086 48,619
Westfield Trust new (Real Estate).................................... 1,047 2,028
Westpac Banking Corp. (Finance)...................................... 44,900 268,611
-------------
3,583,470
-------------
BRAZIL -- 0.2%
Centrais Electricas Brasileiras SA (Utilities)+...................... 695,000 222,023
Companhia Paulista de Forca e Luz (Utilities)+....................... 194,000 19,438
Companhia Siderurgica Nacional (Materials)........................... 633,000 17,280
Light Particapacoes (Utilities)+..................................... 308,000 57,873
Light-Servicos de Eletricidade SA (Utilities)........................ 138,000 43,618
Telec de Sao Paulo SA (Utilities)+................................... 11,142 1,968
-------------
362,200
-------------
FRANCE -- 6.6%
Accor SA (Information & Entertainment)............................... 923 118,383
Alcatel Alsthom (Information Technology)............................. 3,818 347,024
AXA SA (Finance)..................................................... 5,310 319,080
</TABLE>
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FRANCE (continued)
Banque National Paris (Finance)...................................... 5,370 $ 213,821
BIC (Industrial & Commercial)........................................ 1,025 153,442
Bouygues SA (Consumer Discretionary)................................. 956 106,328
Canal Plus SA (Information & Entertainment).......................... 715 163,974
Carrefour SA (Consumer Discretionary)................................ 1,075 663,875
Cie de St. Gobain (Materials)........................................ 2,703 388,597
Cie Financiere de Paribas (Finance).................................. 2,714 186,465
Cie Generale des Eaux (Industrial & Commercial)...................... 2,979 367,257
Compagnie Bancaire SA (Finance)...................................... 730 83,009
Compaignie UAP SA (Finance).......................................... 9,204 245,085
Compaynie de Suez SA (Finance)....................................... 4,752 203,314
Ecco SA (Industrial & Commercial)(1)+................................ 25 5,872
Elf Aquitaine SA (Energy)............................................ 8,150 711,592
Eridania Beghin-Say SA (Consumer Staples)............................ 1,050 163,013
Essilor International (Healthcare)+.................................. 270 77,736
Etablissements Economiques du Casino Guichard-Perrachon
(Consumer Discretionary)........................................... 2,400 108,656
Groupe Danone (Consumer Staples)..................................... 2,227 327,839
Groupe Saint Louis (Materials)....................................... 270 68,485
Havas SA (Industrial & Commercial)................................... 1,852 131,177
L' Oreal (Consumer Staples).......................................... 1,903 696,166
L'Air Liquide SA (Materials)......................................... 2,055 327,695
Lafarge SA (Materials)............................................... 3,204 202,404
Legrand SA (Consumer Staples)........................................ 865 149,857
Lyonnaise des Eaux SA (Multi-industry)............................... 1,770 168,468
Michelin SA (Consumer Discretionary)................................. 4,671 239,550
Moet Hennessy Louis Vuitton (Consumer Staples)....................... 2,675 677,993
Pernod-Ricard (Consumer Staples)..................................... 1,825 100,966
Peugeot SA (Consumer Discretionary).................................. 1,650 202,783
Pinault Printemps Redoute (Consumer Discretionary)................... 585 232,822
Promodes (Consumer Discretionary).................................... 535 148,708
Rhone Poulenc SA (Healthcare)........................................ 9,526 308,549
Sagem SA (Industrial & Commercial)................................... 90 55,132
Sanofi SA (Consumer Staples)......................................... 2,942 263,574
Schneider SA (Industrial & Commercial)............................... 4,172 198,465
Simco (Real Estate)+................................................. 46 3,875
Simco registered (Real Estate)....................................... 975 87,033
Societe Eurafrance SA (Finance)...................................... 90 40,660
Societe Generale (Finance)+.......................................... 2,240 244,849
Sodexho SA (Industrial & Commercial)................................. 185 92,504
Thomson CSF (Industrial & Commercial)................................ 3,800 122,865
Total SA, Series B (Energy).......................................... 6,642 531,101
Usinor Sacilor (Materials)........................................... 7,910 118,337
-------------
10,368,380
-------------
GERMANY -- 10.2%
Adidas AG (Consumer Discretionary)+.................................. 1,750 151,892
Agiv AG (Multi-industry)+............................................ 1,900 24,521
Allianz AG Holding (Finance)......................................... 850 1,550,127
AMB Aachener Und Muenchner (Finance)................................. 150 107,275
BASF AG (Materials)+................................................. 23,150 856,254
Bayer AG (Materials)+................................................ 28,050 1,128,675
Bayerische Hypotheken Und Bank AG (Finance).......................... 10,150 318,404
Bayerische Vereinsbank AG (Finance).................................. 10,300 431,594
Beiersdorf AG (Consumer Staples)+.................................... 3,050 152,292
Bilfinger & Berger (Industrial & Commercial)+........................ 1,800 67,525
Brau Und Brunnen AG (Consumer Staples)+.............................. 300 20,480
CKAG Colonia Konzern AG (Finance)+................................... 1,250 96,060
Continental AG (Consumer Discretionary).............................. 4,300 74,365
</TABLE>
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
GERMANY (continued)
Daimler-Benz AG (Consumer Discretionary)+............................ 20,700 $ 1,351,872
Degussa AG (Materials)............................................... 450 186,659
Deutsche Bank AG (Finance)........................................... 19,750 941,210
Deutsche Telekom (Information Technology)+........................... 24,272 527,858
Dresdner Bank AG (Finance)........................................... 18,150 538,682
Heidelberg Zement (Materials)+....................................... 1,650 120,256
Hochtief AG (Industrial & Commercial)+............................... 3,200 128,990
Karstadt AG (Consumer Discretionary)................................. 350 121,627
Klockner Humboldt Deutz AG (Industrial & Commercial)+................ 2,200 10,084
Linde AG (Industrial & Commercial)................................... 400 242,897
Lufthansa AG (Information & Entertainment)+.......................... 15,000 193,095
Manitoba AG (Industrial & Commercial)................................ 500 117,840
Mannesmann AG (Industrial & Commercial).............................. 1,250 521,341
Merck KGAA (Healthcare).............................................. 6,696 247,492
Metro AG (Consumer Discretionary)+................................... 2,360 197,932
Metro AG (Consumer Discretionary)+................................... 1,200 100,644
Munchener Ruckversicherungs (Finance)................................ 304 730,304
Preussag AG (Materials).............................................. 650 152,558
RWE AG (Utilities)+.................................................. 13,650 603,472
SAP AG (Materials)................................................... 2,441 334,068
Schering AG (Consumer Staples)....................................... 2,850 234,026
Siemens AG (Industrial & Commercial)+................................ 22,900 1,103,238
Strabag AG (Consumer Staples)+....................................... 150 11,708
Thyssen AG (Materials)............................................... 1,400 251,037
Veba AG (Utilities).................................................. 19,500 1,140,384
Viag AG (Materials).................................................. 1,100 416,585
Viag AG (Materials)+................................................. 171 63,704
Volkswagen AG (Consumer Discretionary)............................... 1,150 460,942
-------------
16,029,969
-------------
HONG KONG -- 6.9%
Applied International Holdings Ltd. (Information & Entertainment)+... 32,000 1,862
Bank of East Asia Ltd. (Finance)..................................... 42,283 181,010
Cathay Pacific Airways Ltd. (Industrial & Commercial)................ 157,000 258,892
Cheung Kong Holdings Ltd. (Real Estate).............................. 118,000 1,037,765
China Light & Power Co., Ltd. (Utilities)............................ 106,000 455,147
Chinese Estates Ltd. (Real Estate)................................... 88,722 102,698
Dickson Concept Industries Ltd. (Consumer Discretionary)+............ 16,800 61,707
Evergo China Holdings Ltd. (Real Estate)+............................ 13,818 2,609
Giordano International Ltd. (Consumer Discretionary)................. 34,000 29,902
Hang Lung Development Co. (Real Estate).............................. 67,000 149,476
Hang Seng Bank Ltd. (Finance)........................................ 102,800 1,239,796
Hong Kong & China Gas Co., Ltd. (Utilities).......................... 104,320 207,102
Hong Kong Aircraft Engineering Co., Ltd. (Industrial & Commercial)... 10,000 28,906
Hong Kong Telecommunications Ltd. (Information Technology)........... 591,489 1,025,084
Hongkong & Shanghai Hotels Ltd. (Information & Entertainment)........ 68,000 135,437
Hopewell Holdings Ltd. (Real Estate)................................. 228,000 150,388
Hutchison Whampoa Ltd. (Multi-industry).............................. 189,000 1,460,521
Hysan Development Co., Ltd. (Real Estate)............................ 56,000 214,020
Johnson Electric Holdings Ltd. (Industrial & Commercial)............. 22,000 55,626
Melco International Development Ltd. (Consumer Staples).............. 2,500 824
Miramar Hotel & Investment Co., Ltd. (Information & Entertainment)... 31,000 60,741
New World Development Co., Ltd. (Real Estate)........................ 81,712 552,180
Oriental Press Group (Information & Entertainment)................... 76,000 42,757
Peregrine Investment Holdings Ltd. (Finance)......................... 21,000 38,839
Shangri-La Asia Ltd. (Information & Entertainment)................... 58,000 91,516
Shun Tak Holdings Ltd. (Industrial & Commercial)..................... 88,000 61,459
South China Morning Post Ltd. (Information & Entertainment).......... 100,000 91,180
Stelux Holdings International Ltd. (Consumer Discretionary).......... 56,000 13,326
</TABLE>
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<S> <C> <C>
HONG KONG (continued)
Sun Hung Kai Properties Ltd. (Real Estate)........................... 123,000 $ 1,527,160
Swire Pacific Ltd., Class A (Multi-industry)......................... 84,000 795,784
Television Broadcasting Ltd. (Information & Entertainment)........... 23,000 88,347
Wharf Holdings Ltd. (Real Estate).................................... 116,000 600,103
Wing Lung Bank Ltd. (Finance)........................................ 8,168 54,140
Winsor Industrial Corp., Ltd. (Consumer Discretionary)............... 18,500 4,379
Winsor Properties Holdings Ltd. (Real Estate)+....................... 9,250 13,937
-------------
10,834,620
-------------
INDONESIA -- 0.0%
PT Lippo Bank alien (Finance)........................................ 2,000 3,241
PT Polysindo Eka Perkasa alien (Consumer Discretionary)+............. 14,000 7,463
-------------
10,704
-------------
ITALY -- 3.8%
Acciaierie & Ferriere Lombarde (Materials)........................... 7,000 25,004
Assicurazione Generali SpA (Finance)................................. 31,010 623,903
Banca Commerciale Italiana SpA (Finance)............................. 45,200 82,889
Banco Ambrosiano Veneto SpA (Finance)................................ 17,900 39,792
Benetton Group SpA (Consumer Discretionary).......................... 7,825 99,571
Burgo (Cartiere) SpA (Materials)..................................... 5,700 27,260
Cogefar-Impresit SpA (Industrial & Commercial)+...................... 10,000 7,988
Credito Italiano SpA (Finance)....................................... 88,500 96,910
Edison SpA (Utilities)............................................... 24,000 153,092
ENI SpA (Energy)..................................................... 283,000 1,489,719
Fiat SpA (Consumer Discretionary).................................... 113,200 330,800
Fiat SpA nonconvertible (Consumer Discretionary)..................... 27,700 45,224
Gilardini SpA (Industrial & Commercial).............................. 15,000 17,365
Istituto Bancario San Paolotorno (Finance)........................... 30,800 193,014
Istituto Mobiliare Italiano (Finance)................................ 22,200 186,495
Istituto Nazionale Delle Asazioni SpA (Finance)...................... 139,700 194,444
Italcementi Fabbriche SpA (Materials)................................ 9,550 55,784
Italcementi Fabbriche SpA nonconvertible (Materials)................. 5,150 12,808
Italgas-Societa Itailiana per il Gas SpA (Utilities)................. 22,900 95,168
La Rinascente Per L'Eserciz Grandi Magazzini SpA
(Consumer Discretionary)........................................... 9,000 52,245
Mediaset SpA (Information & Entertainment)+.......................... 43,000 205,930
Mediobanca SpA (Finance)............................................. 16,200 93,292
Montedison SpA (Multi-industry)+..................................... 149,650 106,022
Montedison SpA nonconvertible (Multi-industry)+...................... 37,100 22,515
Olivetti Group (Information Technology)+............................. 125,500 44,125
Parmalat Finanziar (Finance)......................................... 52,920 82,909
Pirelli SpA (Consumer Discretionary)................................. 64,000 116,943
Riunione Adriatica de Sicur (Finance)................................ 11,725 116,016
Saffa SpA (Materials)+............................................... 1,300 2,277
Sasib SpA (Industrial & Commercial).................................. 5,400 17,098
Sirti SpA (Consumer Discretionary)................................... 9,600 58,071
SNIA BPD SpA (Multi-industry)........................................ 23,000 22,606
Societa Assicuratrice Industriale SpA (Finance)...................... 4,950 43,118
Telecome Italia Mobile SpA (Information Technology).................. 237,900 559,460
Telecome Italia SpA (Information Technology)......................... 232,500 547,528
Telecome Italia SpA nonconvertible (Information Technology).......... 56,000 102,879
-------------
5,970,264
-------------
JAPAN -- 32.9%
Advantest Corp. (Information Technology)............................. 3,200 136,541
Ajinomoto Co., Inc. (Consumer Staples)............................... 52,000 588,938
Aoki Corp. (Industrial & Commercial)+................................ 26,000 67,111
Aoyama Trading Co., Ltd. (Consumer Discretionary).................... 2,600 73,960
Asahi Breweries Ltd. (Consumer Staples).............................. 26,000 278,490
</TABLE>
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JAPAN (continued)
Asahi Chemical Industry Co., Inc. (Materials)........................ 78,000 $ 512,239
Asahi Glass Co., Ltd. (Materials).................................... 74,000 753,644
Bridgestone Corp. (Industrial & Commercial).......................... 26,000 479,368
Canon, Inc. (Information Technology)................................. 39,000 821,773
Casio Computer Co. (Information Technology).......................... 16,000 129,798
Chiyoda Corp. (Consumer Staples)..................................... 10,000 85,162
Chugai Pharmaceutical Co., Ltd. (Healthcare)......................... 26,000 227,357
Dai Nippon Printing Co., Ltd. (Industrial & Commercial).............. 52,000 949,605
Daiei, Inc. (Consumer Discretionary)................................. 36,000 297,735
Daikin Industries Ltd. (Consumer Staples)............................ 26,000 241,967
Daiwa House Industry Co., Ltd. (Consumer Discretionary).............. 26,000 360,667
Daiwa Securities Co., Ltd. (Finance)................................. 52,000 561,545
Ebara Corp. (Industrial & Commercial)................................ 18,000 252,853
Fanuc Ltd. (Information Technology).................................. 11,100 361,554
Fuji Photo Film Co., Ltd. (Materials)................................ 20,000 626,866
Fujitsu Ltd. (Information Technology)................................ 84,000 803,863
Furukawa Electric Co., Ltd. (Industrial & Commercial)................ 43,000 225,382
Hankyu Corp. (Industrial & Commercial)............................... 52,000 262,968
Hazama Corp. (Consumer Staples)...................................... 26,000 86,286
Hitachi Ltd. (Information Technology)................................ 130,000 1,209,833
Honda Motor Co., Ltd. (Consumer Discretionary)....................... 41,000 1,209,482
Industrial Bank of Japan Ltd. (Finance).............................. 240 4,741
Ito-Yokado Co. (Consumer Discretionary).............................. 17,000 858,209
Japan Airlines Co., Ltd. (Information & Entertainment)+.............. 105,000 613,038
Japan Energy Corp. (Energy).......................................... 66,000 214,399
Jusco Co., Ltd. (Consumer Discretionary)............................. 21,000 682,177
Kajima Corp. (Industrial & Commercial)............................... 52,000 415,452
Kansai Electric Power Co., Inc. (Utilities).......................... 27,800 580,895
KAO Corp. (Consumer Staples)......................................... 48,000 556,277
Kawasaki Steel Corp. (Materials)..................................... 134,000 420,000
Kinki Nippon Railway Co., Ltd. (Industrial & Commercial)............. 78,900 516,764
Kirin Brewery Co., Ltd. (Consumer Staples)........................... 52,000 525,022
Komatsu Ltd. (Industrial & Commercial)............................... 52,000 437,823
Kubota Ltd. (Industrial & Commercial)................................ 78,000 443,073
Kumagai Gumi Co., Ltd. (Consumer Discretionary)...................... 52,000 147,006
Kyocera Corp. (Information Technology)............................... 8,000 514,135
Kyowa Hakko Kogyo Co., Ltd. (Materials).............................. 26,000 219,140
Marubeni Corp. (Consumer Discretionary).............................. 78,000 352,678
Marui Co., Ltd. (Consumer Discretionary)............................. 16,000 303,424
Matsushita Electric Industrial Co., Ltd. (Information Technology).... 78,000 1,349,078
Mitsubishi Chemical Corp. (Materials)................................ 78,000 295,154
Mitsubishi Corp. (Consumer Discretionary)............................ 73,000 846,005
Mitsubishi Electric Corp. (Information Technology)................... 92,000 529,061
Mitsubishi Estate Co., Ltd. (Real Estate)............................ 56,000 707,989
Mitsubishi Heavy Industrial Ltd. (Industrial & Commercial)........... 143,000 1,167,603
Mitsubishi Materials Corp. (Materials)............................... 53,000 237,313
Mitsui & Co. (Materials)............................................. 78,000 662,897
Mitsui Engineering & Shipbuilding Co., Ltd. (Industrial &
Commercial)+....................................................... 52,000 128,288
Mitsui Fudosan Co., Ltd. (Real Estate)............................... 42,000 497,805
Mitsukoshi Ltd. (Consumer Discretionary)............................. 29,000 253,336
Murata Manufacturing Co. (Industrial & Commercial)................... 10,000 341,528
NEC Corp. (Information Technology)................................... 62,000 751,185
New Oji Paper Co., Ltd. (Information & Entertainment)................ 49,000 350,615
NGK Insulators Ltd. (Industrial & Commercial)........................ 26,000 264,794
Nippon Express Co., Ltd. (Industrial & Commercial)................... 51,000 388,657
Nippon Fire & Marine Insurance Co., Ltd. (Finance)................... 26,000 140,843
Nippon Light Metal Co., Ltd. (Materials)............................. 25,000 114,794
Nippon Meat Packers, Inc. (Consumer Staples)......................... 26,000 340,123
Nippon Oil Co., Ltd. (Energy)........................................ 78,000 440,334
</TABLE>
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JAPAN (continued)
Nippon Steel Corp. (Materials)....................................... 290,000 $ 875,856
Nippon Yusen Kabushiki Kaish (Industrial & Commercial)............... 78,000 373,222
Nippondenso Co., Ltd. (Industrial & Commercial)...................... 26,000 604,917
Nissan Motor Co., Ltd. (Consumer Discretionary)...................... 99,000 703,169
NKK Corp. (Materials)+............................................... 153,000 376,119
Nomura Securities International, Inc. (Finance)...................... 78,000 1,314,838
Odakyu Electric Railway Co., Ltd. (Industrial & Commercial).......... 52,600 324,190
Oji Paper Co. (Materials)+........................................... 3,000 21,466
Osaka Gas Co., Ltd. (Utilities)...................................... 116,000 357,471
Penta Ocean Construction Co., Ltd. (Industrial & Commercial)......... 26,000 132,853
Pioneer Electronic NV (Information Technology)....................... 8,000 172,081
Rohm Co. (Information Technology).................................... 2,000 122,915
Sankyo Co., Ltd. (Healthcare)........................................ 26,000 696,225
Sanyo Electric Co., Ltd. (Information Technology).................... 78,000 365,004
Secom Co. (Information Technology)................................... 6,000 361,896
Sega Enterprises Ltd. (Consumer Discretionary)....................... 5,100 199,701
Sekisui House Ltd. (Consumer Discretionary).......................... 26,000 278,490
Sharp Corp. (Information Technology)................................. 52,000 812,643
Shimano, Inc. (Industrial & Commercial).............................. 7,000 118,613
Shimizu Corp. (Consumer Discretionary)............................... 37,000 308,604
Shin Etsu Chemical Co., Ltd. (Materials)............................. 11,200 204,530
Shiseido Co., Ltd. (Healthcare)...................................... 11,000 132,309
Showa Denko KK (Materials)+.......................................... 52,000 130,114
Sony Corp. (Information Technology).................................. 12,400 793,644
Sumitomo Chemical Co., Ltd. (Materials).............................. 105,000 457,243
Sumitomo Corp. (Consumer Discretionary).............................. 52,000 440,562
Sumitomo Electric Industries Ltd. (Industrial & Commercial).......... 35,000 491,659
Sumitomo Forestry Co., Ltd. (Materials).............................. 11,000 149,693
Sumitomo Metal Industries Ltd. (Materials)........................... 183,000 486,822
Sumitomo Metal Mining Co., Ltd. (Materials).......................... 25,000 183,275
Sumitomo Osaka Cement Co., Ltd. (Materials).......................... 26,000 98,156
Taisei Corp. (Consumer Discretionary)................................ 52,000 288,990
Takeda Chemical Industries Ltd. (Healthcare)......................... 40,000 783,143
Teijin Ltd. (Consumer Discretionary)................................. 52,000 247,902
Tobu Railway Co., Ltd. (Industrial & Commercial)..................... 52,000 288,990
Tohoku Electric Power Co., Inc. (Utilities).......................... 18,700 382,537
Tokio Marine & Fire Insurance Co., Ltd. (Finance).................... 78,000 862,862
Tokyo Dome Corp. (Industrial & Commercial)........................... 12,000 249,693
Tokyo Electric Power Co., Inc. (Utilities)........................... 48,500 1,094,337
Tokyo Ltd. (Information Technology).................................. 6,000 171,203
Tokyo Gas Co. Ltd. (Utilities)....................................... 76,000 224,197
Tokyu Corp. (Industrial & Commercial)................................ 52,000 346,971
Toppan Printing Co., Ltd. (Information & Entertainment).............. 36,000 474,100
Toray Industries, Inc. (Materials)................................... 78,000 502,651
Toto Ltd. (Materials)................................................ 26,000 340,123
Toyobo Co., Ltd. (Consumer Discretionary)............................ 52,000 163,898
Toyota Motor Corp. (Consumer Discretionary).......................... 121,000 3,303,863
Ube Industries Ltd. (Materials)...................................... 52,000 162,529
Yamaichi Securities Co., Ltd. (Finance).............................. 52,000 274,381
-------------
51,467,292
-------------
KOREA -- 0.7%
Cho Hung Bank (Finance)+............................................. 3,880 30,518
Commerce Bank Korea (Finance)+....................................... 3,480 24,013
Daewoo Corp. (Industrial & Commercial)+.............................. 2,690 22,326
Daewoo Heavy Industries (Industrial & Commercial)+................... 8,430 58,068
Daewoo Securities Co., Ltd. (Finance)+............................... 1,170 19,054
Dong Construction (Industrial & Commercial)+......................... 860 21,994
Hanil Bank (Finance)+................................................ 3,960 26,179
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KOREA (continued)
Hyundai Motor Co. (Consumer Discretionary)+.......................... 950 $ 31,818
Hyundai, Engineering & Construction Co. (Industrial & Commercial)+... 1,170 32,880
Korea Electric Power Corp. (Utilities)+.............................. 11,920 381,060
Korea First Bank (Finance)+.......................................... 3,580 20,730
Korea Mobile Telecommunications Corp. (Information Technology)+...... 90 89,296
LG Chemicals (Materials)+............................................ 1,840 20,643
Pohang Iron & Steel Co., Ltd. (Materials)+........................... 2,230 146,250
Samsung Co. (Information Technology)+................................ 1,400 18,747
Samsung Disposal Devices (Information Technology)+................... 590 37,606
Samsung Electronic (Information Technology)+......................... 1,660 125,824
Tongyang Cement (Materials)+......................................... 230 4,772
Yukong Ltd. (Energy)+................................................ 1,756 47,338
-------------
1,159,116
-------------
MALAYSIA -- 0.0%
Malaysian Oxygen Bhd (Materials)..................................... 2,000 10,210
Metroplex Bhd (Real Estate).......................................... 20,000 25,643
Public Bank Bhd (Finance)............................................ 2,333 4,985
-------------
40,838
-------------
NETHERLANDS -- 2.4%
ABN AMRO Holdings NV (Finance)....................................... 4,810 311,591
Akzo Nobel NV (Materials)............................................ 1,175 155,981
Elsevier NV (Consumer Discretionary)................................. 11,600 197,785
Getronics NV (Information Technology)+............................... 1,800 48,228
Heineken NV (Consumer Staples)....................................... 600 107,696
ING Groep NV (Finance)............................................... 10,791 377,995
KLM Royal Dutch Air Lines NV (Information & Entertainment)........... 1,294 33,395
Koninlijke Ahold NV (Consumer Discretionary)......................... 1,575 35,897
Koninlijke KNP BT (Materials)........................................ 1,925 120,459
Koninlijke PTT Nederland NV (Information Technology)................. 7,588 284,280
Nedlloyd Groep NV (Industrial & Commercial).......................... 350 8,891
Philips Electronics NV (Information Technology)...................... 5,050 204,132
Royal Dutch Petroleum Co. (Energy)................................... 7,900 1,332,320
Stork NV (Industrial & Commercial)+.................................. 425 14,123
Unilever NV CVA (Consumer Staples)................................... 2,400 415,334
Wolters Kluwer NV (Information & Entertainment)+..................... 1,050 137,317
-------------
3,785,424
-------------
PORTUGAL -- 0.1%
Banco Portugues do Atlantico SA (Finance)+........................... 8,700 137,307
-------------
SINGAPORE -- 4.7%
Amcol Holdings Ltd. (Consumer Staples)(1)............................ 17,000 31,758
City Developments Ltd. (Real Estate)................................. 62,000 548,164
Cycle & Carriage Ltd. (Consumer Discretionary)....................... 15,000 170,053
DBS Land Ltd. (Real Estate).......................................... 75,000 267,380
Development Bank of Singapore alien (Finance)........................ 52,000 671,087
First Capital Corp., Ltd. alien (Real Estate)........................ 19,000 54,189
Fraser & Neave Ltd. alien (Consumer Staples)......................... 24,800 258,168
Hai Sun Hup Group Ltd. alien (Finance)............................... 31,000 22,324
Hotel Properties Ltd. alien (Real Estate)............................ 36,000 59,551
Inchcape Bhd alien (Multi-industry).................................. 15,000 50,053
Jurong Shipyard Ltd. alien (Industrial & Commercial)................. 11,000 53,725
Keppel Corp. Ltd. (Industrial & Commercial).......................... 42,000 326,417
NatSteel Ltd. (Materials)............................................ 32,000 66,624
Neptune Orient Lines Ltd. (Industrial & Commercial).................. 64,000 55,216
Overseas Chinese Banking Corp., Ltd. alien (Finance)................. 76,779 930,655
Overseas Union Enterprise Ltd. (Information & Entertainment)......... 10,000 49,198
Parkway Holdings Ltd. alien (Real Estate)............................ 25,000 94,474
</TABLE>
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<S> <C> <C>
SINGAPORE (continued)
Robinson & Co., Ltd. alien (Consumer Discretionary).................. 7,000 $ 30,196
Shangri-La Hotel Ltd. alien (Information & Entertainment)............ 14,000 49,911
Singapore Airlines Ltd. alien (Information & Entertainment).......... 99,000 931,765
Singapore Press Holdings Ltd. alien (Information & Entertainment).... 26,800 506,381
Singapore Tech Industrial Corp. (Industrial & Commercial)............ 58,000 140,606
Singapore Telecommunications Ltd. alien (Information Technology)..... 481,000 1,118,046
Straits Trading Co., Ltd. (Materials)................................ 31,000 76,036
United Industrial Corp., Ltd. (Multi-industry)....................... 114,000 97,540
United Overseas Bank Ltd. alien (Finance)............................ 70,000 743,672
-------------
7,403,189
-------------
SPAIN -- 3.8%
Acerinox SA (Materials).............................................. 587 74,768
Autopistas Concesionaria Espana SA (Industrial & Commercial)......... 10,920 132,348
Banco Bilbao Vizcaya SA (Finance).................................... 11,550 584,009
Banco Central Hispanoamericano SA (Finance).......................... 8,400 209,125
Banco de Santander SA (Finance)...................................... 8,150 441,663
Corporacion Bancaria de Espana SA (Finance).......................... 6,450 251,447
Corporacion Financiera Alba (Multi-industry)......................... 825 77,634
Corporacion Mapfre SA (Finance)+..................................... 68 3,501
Corporacion Mapfre SA registered (Finance)........................... 1,400 74,031
Dragados & Construcciones SA (Consumer Discretionary)................ 2,950 40,991
Ebro Agricolas, Compania de Alimentacion SA (Industrial &
Commercial)........................................................ 2,450 34,044
Empresa Nacional Celulos SA (Materials).............................. 1,075 13,319
Empresa Nacional de Electricidad SA (Utilities)...................... 13,100 884,862
Ercros SA (Materials)+............................................... 8,700 5,239
Fomento Construcciones Y Contratas SA (Consumer Discretionary)....... 775 65,511
Gas Natural SDG SA (Utilities)....................................... 1,900 394,110
General de Aguas de Barcelona SA (Utilities)......................... 2,234 87,953
Iberdrola SA (Utilities)............................................. 47,600 549,344
Inmobiliaria Metropolitana Vasco Central SA (Real Estate)............ 1,150 41,370
Mapfre Vida SA (Finance)............................................. 13 871
Portland Valderrivas SA (Materials).................................. 375 22,869
Repsol SA (Energy)................................................... 15,400 570,040
Tabacalera SA (Consumer Staples)..................................... 1,900 74,510
Telefonica de Espana SA (Information Technology)..................... 48,100 1,054,531
Union Electrica-Fenosa SA (Utilities)................................ 14,900 112,262
Uralita SA (Materials)............................................... 2,700 20,009
Vallehermoso SA (Real Estate)........................................ 2,200 45,770
Viscofan Industria Navarra (Materials)............................... 1,200 18,527
Zardoya Otis SA (Industrial & Commercial)............................ 485 51,667
-------------
5,936,325
-------------
SWEDEN -- 2.7%
AGA, Series A (Materials)+........................................... 1,500 23,229
AGA, Series B (Materials)+........................................... 4,150 63,341
Asea AB (Industrial & Commercial)+................................... 2,500 289,252
Astra AB (Healthcare)+............................................... 17,800 853,475
Atlas Copco AB (Materials)+.......................................... 5,850 134,150
Autoliv AB (Consumer Discretionary)+................................. 1,700 74,677
Diligentia AB (Real Estate)+......................................... 1,670 26,733
Electrolux AB (Consumer Staples)+.................................... 2,300 134,768
Ericsson (L.M) Telephone Co., Class B (Information Technology)+...... 29,000 893,888
Esselte AB (Materials)+.............................................. 1,100 24,979
Hennes & Mauritz AB, Series B (Consumer Discretionary)+.............. 1,300 187,385
Scanem AB (Industrial & Commercial)+................................. 250 9,605
Securitas AB, Series B (Industrial & Commercial)+.................... 2,800 80,469
Skand Enskilda Bank (Finance)+....................................... 16,700 155,422
Skandia Foersaekrings AB (Finance)+.................................. 3,600 102,656
Skanska AB (Industrial & Commercial)+................................ 3,900 172,479
</TABLE>
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<S> <C> <C>
SWEDEN (continued)
SKF AB Series B (Materials)+......................................... 3,800 $ 80,633
Stadshyotek AB (Finance)+............................................ 4,000 119,126
Stora Kopparbergs (Materials)+....................................... 9,650 132,200
Svenska Cellulosa AB (Materials)+.................................... 6,000 128,656
Svenska Handelsbank, Series A (Finance)+............................. 6,400 175,353
Swedish Match Co. (Consumer Staples)+................................ 14,800 48,484
Trelleborg AB (Materials)+........................................... 4,200 55,036
Volvo AB (Consumer Discretionary)+................................... 12,300 270,155
-------------
4,236,151
-------------
THAILAND -- 2.3%
Advance Agro PCL alien (Materials)+.................................. 6,000 15,975
Advanced Information Services PCL (Information Technology)........... 15,400 178,477
Bangchak Petroleum PCL alien (Energy)................................ 18,400 18,551
Bangkok Bank PCL alien (Finance)+.................................... 25,600 292,680
Bangkok Land Co. Ltd. (Real Estate)+................................. 11,000 12,813
Bangkok Metropolitan Bank PCL alien (Finance)........................ 51,937 26,944
Bank of Ayudhya PCL alien (Finance).................................. 43,550 137,263
Banpu Coal PCL alien (Materials)..................................... 2,900 57,681
Charoen Pokphand Feedmill Co. PCL alien (Consumer Staples)........... 3,700 14,197
CMIC Finance & Security PCL alien (Finance).......................... 6,700 13,116
Dhana Siam Finance & Securities PCL alien (Finance).................. 23,000 69,791
Finance One PCL alien (Finance)...................................... 16,700 47,732
General Finance & Securities PCL alien (Finance)..................... 7,650 17,971
Italian-Thai Development PCL alien (Industrial & Commercial)......... 16,500 108,534
Jasmine International PCL alien (Information Technology)............. 11,800 26,335
Krung Thai Bank PCL alien (Finance).................................. 96,500 275,817
Land & Houses PCL alien (Consumer Discretionary)..................... 8,500 67,227
MDX PCL alien (Real Estate)+......................................... 4,800 4,088
National Finance & Securities PCL alien (Finance).................... 14,100 32,296
National Petrochemical PCL alien (Materials)......................... 10,900 10,563
One Holding PCL alien (Finance)...................................... 5,600 3,727
Phatra Thanakit PCL alien (Finance).................................. 13,300 49,470
Phatra Thanakit PCL (Finance)+....................................... 2,300 8,555
PTT Exploration & Production PCL alien (Energy)...................... 34,200 503,483
Quality House PCL alien (Consumer Staples)........................... 6,600 6,202
Sahavirya Steel Industries PCL alien (Materials)+.................... 33,900 11,946
Shinawatra Computer & Communication PCL alien (Information
Technology)........................................................ 9,100 120,428
Shinawatra Computer & Communication PCL
(Information Technology)........................................... 4,500 58,495
Shinawatra Satelite PCL alien (Information Technology)+.............. 12,300 17,096
Siam Cement Co. alien (Materials).................................... 8,900 309,438
Siam City Bank PCL alien (Finance)+.................................. 6,050 7,106
Siam City Bank PCL (Finance)+........................................ 5,000 5,824
Siam City Cement PCL alien (Materials)............................... 5,600 37,274
Siam City Cement PCL (Materials)+.................................... 5,700 37,940
Siam Commercial Bank Co., Ltd. alien (Finance)+...................... 11,300 98,220
Siam Makro PCL alien (Consumer Discretionary)+....................... 3,700 16,080
Telecomasia Corp. PCL alien (Utilities)+............................. 147,300 305,667
Telecomasia Corp. PCL (Utilities)+................................... 57,100 118,490
Thai Airways International PCL alien (Information & Entertainment)... 67,000 118,048
Thai Military Bank PCL alien (Finance)............................... 9,100 24,050
Thai Military Bank PCL alien (Finance)+.............................. 4,300 11,028
Thai Telephone & Telecommunications PCL (Information Technology)+.... 23,600 37,423
TPI Polene PCL alien (Materials)+.................................... 4,300 8,671
TPI Polene PCL (Materials)+.......................................... 12,600 25,407
</TABLE>
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<S> <C> <C>
THAILAND (continued)
United Communication Industries PCL alien (Information Technology)... 15,400 $ 130,240
United Communication Industries PCL (Information Technology)+........ 8,100 65,332
Univest Land PCL (Real Estate)+...................................... 9,300 3,059
-------------
3,566,750
-------------
UNITED KINGDOM -- 12.6%
Abbey National PLC (Finance)......................................... 28,000 327,169
Argyll Group PLC (Consumer Discretionary)............................ 17,672 115,872
Arjo Wiggins Appleton PLC (Materials)................................ 14,800 39,812
Associated British Foods PLC (Consumer Staples)...................... 11,000 81,649
B.A.T. Industries PLC (Multi-industry)............................... 63,699 508,692
Barclays PLC (Finance)............................................... 35,167 604,839
Bass PLC (Consumer Staples).......................................... 23,300 306,919
BICC Group PLC (Industrial & Commercial)............................. 14,818 71,001
Blue Circle Industries PLC (Materials)............................... 27,100 169,489
BOC Group PLC (Materials)............................................ 13,288 197,935
Boots Co. PLC (Consumer Discretionary)............................... 22,100 235,565
BPB Industries PLC (Materials)....................................... 13,700 80,961
British Aerospace PLC (Industrial & Commercial)...................... 10,237 199,129
British Airways PLC (Information & Entertainment).................... 23,512 232,432
British Gas PLC (Utilities).......................................... 89,500 328,026
British Petroleum Co. PLC (Energy)................................... 115,188 1,331,886
British Sky Broadcasting Group PLC (Information & Entertainment)..... 33,700 294,054
British Steel PLC (Materials)........................................ 41,700 116,379
British Telecommunications PLC (Information Technology).............. 119,800 758,317
BTR PLC (Industrial & Commercial).................................... 85,927 345,268
Burmah Castrol PLC (Energy).......................................... 6,200 109,761
Cable & Wireless PLC (Information Technology)........................ 51,409 411,410
Cadbury Schweppes PLC (Consumer Staples)............................. 23,000 197,789
Caradon PLC (Industrial & Commercial)................................ 17,200 68,968
Coats Viyella PLC (Consumer Discretionary)........................... 18,795 42,343
Commercial Union PLC (Finance)....................................... 13,600 150,908
Courtaulds PLC (Materials)........................................... 10,000 66,913
De La Rue PLC (Information & Entertainment).......................... 2,961 28,998
General Electric PLC (Multi-industry)................................ 59,000 369,494
GKN PLC (Industrial & Commercial).................................... 11,750 221,053
Glaxo Wellcome PLC (Healthcare)...................................... 66,100 1,087,127
Granada Group PLC (Information & Entertainment)...................... 15,034 218,888
Grand Metropolitan PLC (Information & Entertainment)................. 43,845 342,401
Great Universal Stores PLC (Consumer Discretionary).................. 24,700 284,872
Guardian Royal Exchange PLC (Finance)................................ 17,141 77,233
Guinness PLC (Consumer Staples)...................................... 45,400 339,660
Hanson PLC (Multi-industry).......................................... 106,182 141,921
Harrisons & Crossfield PLC (Multi-industry).......................... 26,600 58,137
HSBC Holdings PLC (Finance).......................................... 45,868 964,323
Imperial Chemical Industries PLC (Materials)......................... 17,600 228,285
Kingfisher PLC (Consumer Staples).................................... 1 11
Ladbroke Group PLC (Information & Entertainment)..................... 24,473 84,347
Land Securities PLC (Real Estate).................................... 16,400 203,208
LASMO PLC (Energy)+.................................................. 17,000 63,164
Legal & General PLC (Finance)+....................................... 25,600 150,639
Lloyds TSB Group Ltd. (Finance)...................................... 112,138 776,746
Lonrho PLC (Multi-industry).......................................... 17,253 39,014
Marks & Spencer PLC (Consumer Discretionary)......................... 71,000 604,001
MEPC PLC (Real Estate)............................................... 12,500 93,414
National Power PLC (Utilities)....................................... 29,500 228,640
Peninsular & Oriental Steam PLC (Industrial & Commercial)+........... 16,100 160,107
Pilkington PLC (Materials)........................................... 31,243 78,528
Prudential Corp. PLC (Finance)....................................... 40,697 333,554
</TABLE>
---------------------
83
<PAGE> 84
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (continued)
Rank Group PLC (Information & Entertainment)+........................ 17,500 $ 127,984
Redland PLC (Materials).............................................. 12,217 75,997
Reed International PLC (Information & Entertainment)................. 14,700 284,831
Reuters Holdings PLC (Industrial & Commercial)....................... 34,900 424,808
Rexam PLC (Materials)................................................ 11,700 66,486
RMC Group PLC (Materials)............................................ 7,000 116,333
Royal Bank of Scotland Group PLC (Finance)........................... 10,952 96,484
Royal Sun Alliance (Finance)......................................... 28,270 213,166
RTZ Corp. PLC (Materials)............................................ 24,400 410,222
Sainsbury (J.) PLC (Consumer Discretionary).......................... 31,829 200,938
Schroders PLC (Finance).............................................. 4,500 115,753
Scottish Power PLC (Utilities)....................................... 19,628 111,208
Sears PLC (Consumer Discretionary)................................... 40,700 63,637
Sedgwick Group PLC (Finance)......................................... 11,600 24,475
Slough Estates PLC (Real Estate)..................................... 9,400 41,089
Smithkline Beecham PLC (Healthcare).................................. 50,598 697,552
Southern Electric PLC (Utilities).................................... 5,900 69,435
Tarmac PLC (Industrial & Commercial)................................. 28,226 41,997
Taylor Woodrow PLC (Industrial & Commercial)......................... 15,679 39,540
Tesco PLC (Consumer Discretionary)................................... 39,077 223,306
Thames Water PLC (Industrial & Commercial)........................... 14,833 144,016
Thorn EMI PLC (Consumer Discretionary)............................... 10,310 238,163
Thorn PLC (Consumer Discretionary)+.................................. 10,700 49,650
TI Group PLC (Industrial & Commercial)............................... 10,946 102,044
Unilever PLC (Consumer Staples)...................................... 13,900 327,636
United Utilities PLC (Utilities)..................................... 14,032 138,716
Vodafone Group PLC (Information Technology).......................... 66,506 287,917
Zeneca Group PLC (Real Estate)....................................... 18,500 510,087
-------------
19,814,721
-------------
UNITED STATES -- 0.0%
Millenium Chemicals, Inc. (Materials)+............................... 1,251 25,802
-------------
TOTAL COMMON STOCK (cost $139,710,238)............................... 144,732,522
<CAPTION>
-------------
PREFERRED STOCK -- 1.0%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRALIA -- 0.1%
News Corp., Ltd. (Information & Entertainment)....................... 22,668 99,631
-------------
BRAZIL -- 0.5%
Aracruz Celulose SA (Materials)...................................... 9,400 15,106
Banco Bradesco SA (Finance).......................................... 7,215,000 52,733
Banco do Brasil SA (Finance)......................................... 749,000 6,453
Banco Estado de Sao Paulo SA (Finance)............................... 436,000 2,528
Banco Itau SA (Finance).............................................. 86,000 33,717
Cemig Cia Energy MG (Utilities)...................................... 1,115,000 35,943
Centrais Electricas Brasileiras SA (Utilities)....................... 252,000 82,699
Ceval Alimentos SA (Consumer Staples)................................ 330,000 3,239
Companhia Brasileiro de Petroleo Ipiranga (Energy)................... 415,000 5,424
Companhia Cervejaraia Brahma (Consumer Staples)...................... 65,000 38,446
Companhia Energetica de Sao Paulo (Utilities)........................ 28,000 907
Companhia Siderurgica de Tubarao (Materials)......................... 709,000 10,638
Companhia Vale do Rio Doce (Materials)............................... 3,192 67,054
Itausa Investimentos Itau SA (Finance)............................... 31,000 23,107
Klabin Fabricadora (Materials)....................................... 8,000 7,667
Petroleo Brasileiros SA (Energy)..................................... 797,000 109,559
Sadia-Concordia SA (Consumer Staples)................................ 8,000 6,041
</TABLE>
- ---------------------
84
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<TABLE>
<CAPTION>
PREFERRED STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
BRAZIL (continued)
Telecomunicacoes Brasileirassa SA (Information Technology)........... 2,969,000 $ 224,759
Telecomunicacoes de Sao Paulo SA (Information Technology)............ 260,000 46,060
Usinas Siderurgicas de Minas Gerais SA (Materials)................... 16,473,000 16,425
-------------
788,505
-------------
GERMANY -- 0.4%
RWE AG (Utilities)................................................... 8,500 312,236
SAP AG (Materials)................................................... 1,640 225,405
-------------
537,641
-------------
ITALY -- 0.0%
Fiat SpA (Consumer Discretionary).................................... 35,500 55,032
-------------
TOTAL PREFERRED STOCK (cost $1,299,685).............................. 1,480,809
-------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 0.0% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FRANCE -- 0.0%
Casino Guichard Perrachon et Cie S.C.A. 4.50% 2001
(Consumer Discretionary)........................................... $ 43,400 17,702
Sodexho SA 6.00% 2004 (Industrial & Commercial)...................... 30,000 5,800
-------------
23,502
-------------
TOTAL BONDS & NOTES (cost $15,026)................................... 23,502
<CAPTION>
RIGHTS -- 0.0%+ SHARES
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HONG KONG -- 0.0%
Hongkong & Shanghai Hotels Ltd. 12/02/96 (Information &
Entertainment)..................................................... 5,667 3,371
-------------
SPAIN -- 0.0%
Aguas de Barcelona 12/18/96 (Consumer Staples)....................... 2,234 1,104
-------------
THAILAND -- 0.0%
One Holding PCL alien 12/02/96 (Finance)............................. 5,600 1,535
-------------
TOTAL RIGHTS (cost $0)............................................... 6,010
-------------
<CAPTION>
WARRANTS -- 0.7%+
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HONG KONG -- 0.0%
Peregrine Investment Holdings Ltd. 5/15/98 (Finance)................. 1,200 396
-------------
BRAZIL -- 0.7%
Banco do Brasil SA, Series A 6/30/01 (Finance)....................... 149,800 246,525
Banco do Brasil SA, Series B 6/30/06 (Finance)....................... 224,700 337,159
Banco do Brasil SA, Series C 6/30/11 (Finance)....................... 374,500 561,931
-------------
1,145,615
-------------
FRANCE -- 0.0%
Casino Guichard Perrachon et Cie S.C.A. 12/31/99 (Consumer
Discretionary)..................................................... 434 4,943
Sodexho SA 6/07/04 (Industrial & Commercial)......................... 6 1,011
-------------
5,954
-------------
</TABLE>
---------------------
85
<PAGE> 86
<TABLE>
<CAPTION>
WARRANTS (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HONG KONG -- 0.0%
Hong Kong & China Gas Co., Ltd. 9/30/97 (Utilities).................. 8,360 $ 5,271
Hysan Development Co., Ltd. 4/30/98 (Real Estate).................... 1,300 992
Oriental Press Group 10/02/98 (Information & Entertainment).......... 7,600 708
-------------
6,971
-------------
INDONESIA -- 0.0%
PT Indah Kiat Pulp & Paper Corp. alien 4/13/01 (Materials)........... 1,653 472
-------------
ITALY -- 0.0%
Mediobanca SpA 11/30/99 (Finance).................................... 650 304
Riunione Adriatica de Sicur 12/31/97 (Finance)....................... 150 220
Riunione Adriatica de Sicur 11/30/97 (Finance)....................... 250 810
-------------
1,334
-------------
MALAYSIA -- 0.0%
Metroplex Bhd 6/20/00 (Real Estate).................................. 1,833 958
-------------
SINGAPORE -- 0.0%
Straits Steamship Land Ltd. 12/12/00 (Multi-industry)................ 4,750 5,317
-------------
THAILAND -- 0.0%
One Holding PCL alien (Finance)...................................... 1,120 0
-------------
TOTAL WARRANTS (cost $12,230)........................................ 1,167,017
-------------
TOTAL INVESTMENT SECURITIES (cost $141,037,179)...................... 147,409,860
-------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 6.9% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 6.9%
Agreement with State Street Bank & Trust Co., bearing interest of
4.75% dated 11/29/96, to be repurchased 12/02/96 in the amount of
$10,821,282 and collateralized by $10,845,000 U.S. Treasury Notes
8.50% due 5/15/97 (cost $10,817,000)............................... $10,817,000 10,817,000
-------------
TOTAL INVESTMENTS --
(cost $151,854,179) 100.8% $158,226,860
Liabilities in excess of other assets -- (0.8) (1,218,467)
------- -------------
NET ASSETS -- 100.0% $157,008,393
======= ==============
</TABLE>
-----------------------------
+ Non-income producing securities
(1) Fair valued security; see Note 2
- ---------------------
86
<PAGE> 87
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
-----------------------------------------------------------------------
<CAPTION>
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DEM 3,444,825 USD 2,300,000 12/27/96 $ 56,327
DEM 213,440 USD 142,000 12/27/96 2,983
DEM 1,825,260 USD 1,200,000 12/27/96 11,178
DEM 12,254,119 USD 8,052,914 01/24/97 57,779
FRF 29,878,780 USD 5,900,000 02/24/97 152,592
FRF 5,948,675 USD 1,180,000 02/24/97 35,728
FRF 3,720,555 USD 725,000 02/24/97 9,323
JPY 242,425,842 USD 2,139,492 12/16/96 5,205
*JPY 122,773,950 USD 1,149,138 12/16/96 71,228
*JPY 294,992,500 USD 2,762,102 12/16/96 172,177
*JPY 47,341,550 USD 417,806 12/16/96 2,164
JPY 484,560,000 USD 4,500,000 12/27/96 226,359
JPY 53,965,000 USD 500,000 12/27/96 24,048
JPY 187,289,000 USD 1,700,000 12/27/96 48,180
JPY 186,889,700 USD 1,670,000 12/27/96 21,701
JPY 289,767,392 USD 2,573,766 01/30/97 7,100
JPY 837,976,008 USD 7,600,000 02/21/97 156,325
NLG 5,371,407 USD 3,190,524 02/10/97 59,960
-----------
1,120,357
-----------
<CAPTION>
GROSS UNREALIZED
DEPRECIATION
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*USD 4,200,000 JPY 465,108,000 12/16/96 $ (116,523)
-----------
Net Unrealized Appreciation.................. $ 1,003,834
===========
</TABLE>
-----------------------------
* Represents open forward foreign currency contracts and
offsetting open forward foreign currency contracts that do not
have additional market risk but have continued counterparty
settlement risk
<TABLE>
<S> <C>
DEM -- Deutsche Mark NLG -- Netherlands Guilder
FRF -- French Franc USD -- United States Dollar
JPY -- Japanese Yen
</TABLE>
See Notes to Financial Statements
---------------------
87
<PAGE> 88
- ---------------------
SUNAMERICA SERIES TRUST
AGGRESSIVE GROWTH PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1996
<TABLE>
<CAPTION>
COMMON STOCK -- 90.4% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 5.2%
Apparel & Textiles -- 1.9%
Gucci Group NV ADR..................................................... 2,000 $ 146,750
NIKE, Inc., Class B.................................................... 2,000 113,750
North Face, Inc.+...................................................... 2,000 44,250
Reebok International Ltd. ............................................. 7,000 266,000
Tommy Hilfiger Corp.+.................................................. 2,000 108,000
Retail -- 3.3%
Kenneth Cole Productions, Inc., Class A+............................... 10,000 158,750
Neiman Marcus Group, Inc.+............................................. 7,000 243,250
Nu Skin Asia Pacific, Inc., Class A.................................... 10,700 316,988
Tiffany & Co. ......................................................... 5,000 184,375
Woolworth Corp.+....................................................... 10,000 240,000
-------------
1,822,113
-------------
CONSUMER STAPLES -- 1.6%
Food, Beverage & Tobacco -- 0.3%
Northland Cranberries, Inc. ........................................... 5,000 111,250
Household Products -- 1.3%
Samsonite Corp.+....................................................... 11,600 439,350
-------------
550,600
-------------
ENERGY -- 20.1%
Energy Services -- 17.8%
Cooper Cameron, Corp.+................................................. 5,000 328,750
Diamond Offshore Drilling, Inc.+....................................... 2,000 127,500
Falcon Drilling, Inc.+................................................. 10,000 400,000
Flores & Rucks, Inc.+.................................................. 5,000 245,625
Global Marine, Inc.+................................................... 15,200 296,400
Marine Drilling Co., Inc.+............................................. 10,000 158,750
McDermott International, Inc. ......................................... 15,000 266,250
Nabors Industries, Inc.+............................................... 10,000 193,750
Noble Drilling Corp.+.................................................. 18,000 346,500
Patterson Energy, Inc.+................................................ 12,000 333,000
Reading & Bates Corp.+................................................. 15,000 435,000
Seacor Holdings, Inc.+................................................. 9,000 569,250
Transocean Offshore, Inc. ............................................. 4,820 290,405
Trico Marine Services, Inc.+........................................... 25,000 1,062,500
United Meridian Corp.+................................................. 10,000 510,000
UTI Energy Corp.+...................................................... 11,000 342,375
Varco International, Inc.+............................................. 6,400 146,400
Weatherford Enterra, Inc.+............................................. 7,000 213,500
Energy Sources -- 2.3%
American Exploration Co.+.............................................. 15,000 245,625
Arakis Energy Corp.+................................................... 20,000 118,750
KN Energy, Inc. ....................................................... 5,000 203,125
Pogo Producing Co. .................................................... 5,000 220,000
-------------
7,053,455
-------------
</TABLE>
- ---------------------
88
<PAGE> 89
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 7.8%
Banks -- 0.8%
Long Island Bancorp, Inc. ............................................. 5,867 $ 187,377
PNC Bank Corp. ........................................................ 2,400 94,800
Financial Services -- 5.9%
Aames Financial Corp. ................................................. 2,000 85,750
Alex Brown, Inc. ...................................................... 2,000 120,250
Allmerica Financial Corp. ............................................. 5,000 165,625
Associates First Capital Corp., Class A................................ 5,000 241,875
Bay View Capital Corp. ................................................ 10,000 412,500
Capital One Financial Corp. ........................................... 6,000 216,750
Emergent Group, Inc.+.................................................. 10,000 118,750
Household International, Inc. ......................................... 2,000 189,500
Intermediate Regional Financial Group, Inc. ........................... 9,000 316,125
Metris Cos., Inc.+..................................................... 9,500 223,250
Insurance -- 1.1%
Lawyers Title Corp. ................................................... 7,000 133,000
Penn Treaty American Corp.+............................................ 10,000 242,500
-------------
2,748,052
-------------
HEALTHCARE -- 7.1%
Drugs -- 4.0%
Agouron Pharmaceuticals, Inc.+......................................... 5,000 274,375
Biogen, Inc.+.......................................................... 10,000 382,500
Guilford Pharmaceuticals, Inc. ........................................ 9,600 169,200
Ligand Pharmaceuticals, Inc., Class B+................................. 10,000 120,625
Teva Pharmaceutical Industries Ltd. ADR................................ 10,100 467,125
Health Services -- 2.4%
Genset ADR.+........................................................... 5,000 85,625
HBO & Co. ............................................................. 5,000 284,375
Maxicare Health Plans, Inc.+........................................... 15,000 309,375
NovaCare, Inc.+........................................................ 20,000 170,000
Medical Products -- 0.7%
Boston Scientific Corp.+............................................... 3,000 175,125
Nitinol Medical Technologies, Inc.+.................................... 5,000 54,375
-------------
2,492,700
-------------
INDUSTRIAL & COMMERCIAL -- 7.4%
Aerospace & Military Technology -- 0.8%
Hexcel Corp.+.......................................................... 10,000 181,250
REMEC, Inc.+........................................................... 5,100 97,537
Business Services -- 4.5%
Culligan Water Technologies, Inc.+..................................... 10,000 372,500
Global DirectMail Corp.+............................................... 3,000 135,000
Lason Holdings, Inc.+.................................................. 2,000 39,000
National Data Corp. ................................................... 6,000 239,250
Philip Environmental, Inc. ............................................ 10,000 130,000
Registry, Inc.+........................................................ 5,000 244,375
TeleSpectrum Worldwide, Inc.+.......................................... 15,000 266,250
United States Filter Corp. ............................................ 5,000 171,250
Electrical Equipment -- 0.1%
Thermo Optek Corp.+.................................................... 2,000 24,250
</TABLE>
---------------------
89
<PAGE> 90
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Multi-Industry -- 2.0%
Rockwell International Corp. .......................................... 5,000 $ 321,250
Tyco International Ltd. ............................................... 7,000 383,250
-------------
2,605,162
-------------
INFORMATION & ENTERTAINMENT -- 5.6%
Broadcasting & Media -- 2.6%
BTG, Inc.+............................................................. 12,200 245,525
Cox Radio, Inc., Class A+.............................................. 4,000 70,000
Mecklermedia Corp.+.................................................... 20,400 413,100
Univision Communications, Inc., Class A+............................... 5,000 198,750
Communication Equipment -- 0.1%
ANADIGICS, Inc.+....................................................... 700 26,250
Entertainment Products -- 0.6%
Panavision, Inc. ...................................................... 10,000 223,750
Leisure & Tourism -- 2.3%
Extended Stay America, Inc.+........................................... 4,000 83,000
HFS, Inc.+............................................................. 2,000 129,500
Mirage Resorts, Inc.+.................................................. 6,000 144,750
Promus Hotel Corp.+.................................................... 5,000 161,250
Sabre Group Holdings, Inc., Class A+................................... 6,300 184,275
Suburban Lodges America, Inc.+......................................... 5,000 86,250
-------------
1,966,400
-------------
INFORMATION TECHNOLOGY -- 31.5%
Communication Equipment -- 2.2%
ADC Telecommunications, Inc.+.......................................... 10,000 362,500
Tellabs, Inc.+......................................................... 10,000 397,500
Computers & Business Equipment -- 8.1%
3Com Corp.+............................................................ 3,000 225,375
Adaptec, Inc.+......................................................... 10,000 372,500
BDM International, Inc.+............................................... 2,000 94,000
Cabletron Systems, Inc.+............................................... 10,000 403,750
Cascade Communications Co.+............................................ 2,000 138,250
Cognos, Inc.+.......................................................... 10,000 380,000
Compaq Computer, Corp.+................................................ 3,000 237,750
Lexmark International Group, Inc., Class A+............................ 15,000 388,125
Quantum Corp.+......................................................... 10,000 267,500
Security Dynamics Technologies, Inc.+.................................. 2,000 82,250
Sun Microsystems, Inc.+................................................ 3,000 174,750
United States Office Products Co.+..................................... 3,100 96,100
Electronics -- 8.8%
Analog Devices, Inc.+.................................................. 5,000 160,625
Chips & Technologies, Inc.+............................................ 20,000 421,250
Concord EFS, Inc. ..................................................... 10,000 291,250
Cymer, Inc.+........................................................... 10,000 332,500
Diebold, Inc. ......................................................... 4,105 244,761
ESS Technology, Inc.+.................................................. 10,000 197,500
Integrated Device Technology, Inc.+.................................... 20,000 248,750
KLA Instruments, Corp.+................................................ 10,000 355,000
Linear Technology Corp. ............................................... 2,000 94,250
LSI Logic Corp.+....................................................... 5,000 150,625
Maxim Integrated Products, Inc.+....................................... 2,000 92,750
Micrel, Inc.+.......................................................... 3,000 75,375
Novellus Systems, Inc.+................................................ 5,000 287,500
Vitesse Semiconductor Corp.+........................................... 3,000 143,250
</TABLE>
- ---------------------
90
<PAGE> 91
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Software -- 7.1%
BMC Software, Inc.+.................................................... 2,000 $ 87,000
Cadence Design Systems, Inc.+.......................................... 5,000 199,375
Cisco Systems, Inc.+................................................... 3,000 203,625
Geoworks+.............................................................. 1,000 22,000
Ingram Micro, Inc., Class A+........................................... 10,000 246,250
Microsoft Corp.+....................................................... 2,000 313,750
Parametric Technology Corp.+........................................... 5,000 271,875
Rational Software Corp.+............................................... 5,000 176,250
Segue Software, Inc.+.................................................. 20,000 255,000
Trusted Information Systems, Inc.+..................................... 3,000 36,000
Veritas DGC, Inc.+..................................................... 10,000 213,750
Veritas Software Co. .................................................. 3,000 139,125
Viasoft, Inc.+......................................................... 6,000 271,500
Videoserver, Inc.+..................................................... 1,050 51,450
Telecommunications -- 5.3%
Lucent Technologies, Inc. ............................................. 10,000 512,500
Pacific Gateway Exchange, Inc.+........................................ 10,000 281,250
PairGain Technologies, Inc.+........................................... 4,300 274,662
Telco Systems, Inc.+................................................... 10,000 178,750
Teleport Communications Group, Class A+................................ 10,000 331,250
Verilink Corp.+........................................................ 10,000 300,000
-------------
11,081,098
-------------
MATERIALS -- 0.9%
Chemicals -- 0.9%
Nalco Chemical Co. .................................................... 3,000 114,375
Praxair, Inc. ......................................................... 4,000 194,500
-------------
308,875
-------------
REAL ESTATE -- 2.5%
Real Estate Companies -- 0.6%
Green Tree Financial Corp. ............................................ 5,000 209,375
Real Estate Investment Trusts -- 1.9%
Bay Apartment Communities, Inc. ....................................... 5,000 162,500
Innkeepers USA Trust................................................... 20,000 250,000
Starwood Lodging Trust+................................................ 5,000 238,750
-------------
860,625
-------------
UTILITIES -- 0.7%
Gas & Pipeline Utilities -- 0.7%
El Paso Natural Gas Co. ............................................... 5,000 250,000
-------------
TOTAL COMMON STOCK (cost $28,763,635).................................. 31,739,080
-------------
<CAPTION>
WARRANTS -- 1.0%+
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY -- 1.0%
Electronics -- 1.0%
Intel Corp. 3/14/98 (cost $235,232).................................... 4,000 351,000
-------------
TOTAL INVESTMENT SECURITIES (cost $28,998,867)......................... 32,090,080
-------------
</TABLE>
---------------------
91
<PAGE> 92
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 8.0% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 8.0%
Joint Repurchase Agreement Account (Note 3)
(cost $2,812,000).................................................... $2,812,000 $ 2,812,000
-------------
TOTAL INVESTMENTS --
(cost $31,810,867) 99.4% 34,902,080
Other assets less liabilities -- 0.6 222,222
----- -------------
NET ASSETS -- 100.0% $35,124,302
===== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
- ---------------------
92
<PAGE> 93
(This page intentionally left blank)
---------------------
93
<PAGE> 94
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1996
<TABLE>
<CAPTION>
CASH GLOBAL CORPORATE HIGH-YIELD
MANAGEMENT BOND BOND BOND
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*........................... $ -- $55,068,056 $34,813,533 $110,313,939
Short-term securities*..................................... 85,399,799 13,051,000 2,024,417 --
Repurchase agreements (cost equals market)................. 5,615,000 -- -- 3,610,000
Cash....................................................... 626 486 182 --
Foreign currency........................................... -- 179 -- --
Receivables for --
Dividends and accrued interest............................ 682,900 1,077,171 688,681 1,348,838
Fund shares sold.......................................... 206,746 36,029 34,595 171,705
Foreign currency contracts................................ -- 5,516,556 -- --
Sales of investments...................................... -- 2,524,512 742,225 --
Variation margin on futures contracts..................... -- -- -- --
Deferred organizational expenses........................... 8,392 4,639 4,639 4,493
Prepaid expenses........................................... 5,647 2,155 1,081 3,406
Unrealized appreciation on forward foreign currency
contracts................................................. -- 755,339 -- --
Due from adviser........................................... -- -- -- --
------------------------------------------------------
91,919,110 78,036,122 38,309,353 115,452,381
------------------------------------------------------
LIABILITIES:
Payables for --
Fund shares redeemed...................................... 583,518 26,851 18,021 31,652
Management fees........................................... 50,500 39,696 20,956 61,082
Foreign currency contracts................................ -- 5,525,813 -- --
Purchases of investments.................................. -- 3,752,561 1,042,639 2,000,000
Other accrued expenses..................................... 38,296 32,202 20,330 30,723
Unrealized depreciation on forward foreign currency
contracts................................................. -- 437,582 -- --
Due to custodian bank...................................... -- -- -- 99,831
------------------------------------------------------
672,314 9,814,705 1,101,946 2,223,288
------------------------------------------------------
NET ASSETS................................................. $91,246,796 $68,221,417 $37,207,407 $113,229,093
======================================================
Shares of beneficial interest outstanding
(unlimited shares authorized)............................. 8,479,746 5,984,546 3,354,369 10,252,646
Net asset value per share.................................. $10.76 $11.40 $11.09 $11.04
======================================================
COMPOSITION OF NET ASSETS:
Capital paid in............................................ $84,932,639 $61,387,868 $34,823,040 $107,922,671
Accumulated undistributed net investment income............ 6,322,183 4,377,089 2,004,899 8,882,962
Accumulated undistributed net realized gain (loss) on
investments, future contracts and options contracts....... (1,609) 91,471 (779,651) (8,469,821)
Unrealized appreciation (depreciation) on investments...... (6,417) 2,040,685 1,159,119 4,893,281
Unrealized foreign exchange gain (loss) on other assets and
liabilities............................................... -- 324,304 -- --
Unrealized appreciation on futures contracts............... -- -- -- --
------------------------------------------------------
$91,246,796 $68,221,417 $37,207,407 $113,229,093
======================================================
---------------
* Cost
Investment securities..................................... $ -- $53,027,371 $33,656,304 $105,420,658
======================================================
Short-term securities..................................... $85,406,216 $13,051,000 $ 2,022,527 $ --
======================================================
<CAPTION>
BALANCED/
WORLDWIDE PHOENIX
HIGH SUNAMERICA INVESTMENT
INCOME BALANCED COUNSEL
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value*........................... $43,004,340 $ 8,382,188 $65,078,152
Short-term securities*..................................... 1,672,625 -- 10,481,073
Repurchase agreements (cost equals market)................. 4,207,000 1,605,000 --
Cash....................................................... 12,411 2,409 1,084
Foreign currency........................................... 47,598 -- --
Receivables for --
Dividends and accrued interest............................ 826,307 20,558 238,833
Fund shares sold.......................................... 197,951 23,328 139,720
Foreign currency contracts................................ -- -- --
Sales of investments...................................... 1,833,978 215,415 209,468
Variation margin on futures contracts..................... -- -- --
Deferred organizational expenses........................... -- -- --
Prepaid expenses........................................... 1,489 214 1,881
Unrealized appreciation on forward foreign currency
contracts................................................. -- -- --
Due from adviser........................................... -- -- --
--------------------------------------
51,803,699 10,249,112 76,150,211
--------------------------------------
LIABILITIES:
Payables for --
Fund shares redeemed...................................... 10,417 965 (6,633)
Management fees........................................... 37,932 5,263 38,201
Foreign currency contracts................................ -- -- --
Purchases of investments.................................. 2,528,539 8,000 6,073,213
Other accrued expenses..................................... 22,314 11,090 24,872
Unrealized depreciation on forward foreign currency
contracts................................................. -- -- --
Due to custodian bank...................................... -- -- --
--------------------------------------
2,599,202 25,318 6,129,653
--------------------------------------
NET ASSETS................................................. $49,204,497 $10,223,794 $70,020,558
======================================
Shares of beneficial interest outstanding
(unlimited shares authorized)............................. 3,686,196 918,897 5,136,034
Net asset value per share.................................. $13.35 $11.13 $13.63
======================================
COMPOSITION OF NET ASSETS:
Capital paid in............................................ $40,168,259 $ 9,316,155 $60,805,241
Accumulated undistributed net investment income............ 3,097,896 56,068 1,258,279
Accumulated undistributed net realized gain (loss) on
investments, future contracts and options contracts....... 3,041,491 28,763 2,090,909
Unrealized appreciation (depreciation) on investments...... 2,901,328 822,808 5,866,129
Unrealized foreign exchange gain (loss) on other assets and
liabilities............................................... (4,477) -- --
Unrealized appreciation on futures contracts............... -- -- --
--------------------------------------
$49,204,497 $10,223,794 $70,020,558
======================================
---------------
* Cost
Investment securities..................................... $40,068,547 $ 7,559,380 $59,211,897
======================================
Short-term securities..................................... $ 1,707,090 $ -- $10,481,199
======================================
</TABLE>
See Notes to Financial Statements
- ---------------------
94
<PAGE> 95
<TABLE>
<CAPTION>
ASSET GROWTH- FEDERATED VENTURE
ALLOCATION UTILITY INCOME VALUE VALUE
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*............... $295,590,649 $6,089,127 $305,430,493 $11,351,546 $470,817,990
Short-term securities*........................ 10,172,234 335,000 19,301,187 964,000 45,662,541
Repurchase agreements (cost equals market)..... 31,386,000 -- -- -- --
Cash........................................... 604 481 3,993,576 941 42,167
Foreign currency............................... -- 156 -- -- --
Receivables for--
Dividends and accrued interest................ 1,976,320 24,086 454,314 25,821 580,531
Fund shares sold............................... 403,055 31,422 510,742 191,156 1,291,724
Foreign currency contracts..................... -- 27,262 -- -- --
Sales of investments........................... 19,577,992 -- -- -- --
Variation margin on futures contracts.......... 125,892 -- 51,750 -- --
Deferred organizational expenses............... 4,639 -- 4,493 -- --
Prepaid expenses............................... 8,641 124 8,062 208 11,793
Unrealized appreciation on forward foreign
currency contracts............................ -- -- -- -- --
Due from adviser............................... -- 2,048 -- -- --
---------------------------------------------------------------------
359,246,026 6,509,706 329,754,617 12,533,672 518,406,746
---------------------------------------------------------------------
LIABILITIES
Payables for --
Fund shares redeemed.......................... 160,177 544 73,430 1,496 265,917
Management fees............................... 157,566 3,589 159,693 6,830 298,344
Foreign currency contracts.................... -- 27,262 -- -- --
Purchases of investments...................... 42,456,796 168,966 3,992,876 52,272 1,325,443
Other accrued expenses......................... 83,061 10,698 65,293 13,546 103,671
Unrealized depreciation on forward foreign
currency contracts............................ -- -- -- -- --
Due to custodian bank.......................... -- -- -- -- --
---------------------------------------------------------------------
42,857,600 211,059 4,291,292 74,144 1,993,375
---------------------------------------------------------------------
NET ASSETS..................................... $316,388,426 $6,298,647 $325,463,325 $12,459,528 $516,413,371
---------------------------------------------------------------------
---------------------------------------------------------------------
Shares of beneficial interest outstanding
(unlimited shares authorized).................. 21,790,902 585,876 19,355,026 1,124,250 30,564,207
Net asset value per share...................... $14.52 $10.75 $16.82 $11.08 $16.90
---------------------------------------------------------------------
---------------------------------------------------------------------
COMPOSITION OF NET ASSETS:
Capital paid in................................ $251,012,742 $5,916,489 $239,798,335 $11,245,757 $412,229,764
Accumulated undistributed net investment
income........................................ 8,660,644 81,475 2,766,743 40,137 3,382,016
Accumulated undistributed net realized gain
(loss on investments, future contracts
and options contracts......................... 19,449,365 12,853 14,863,765 (22,475) 9,681,750
Unrealized appreciation (depreciation) on
investments................................... 36,004,144 287,691 67,072,101 1,196,109 91,119,500
Unrealized foreign exchange gain (loss) on
other assets and liabilities.................. -- 139 -- -- 341
Unrealized appreciation on future contracts.... 1,261,531 -- 962,381 -- --
---------------------------------------------------------------------
---------------------------------------------------------------------
$316,388,426 $6,298,647 $325,463,325 $12,459,528 $516,413,371
---------------------------------------------------------------------
---------------------------------------------------------------------
* Cost
Investment securities.......................... $259,580,687 $5,801,436 $238,355,190 $10,155,437 $379,698,490
---------------------------------------------------------------------
---------------------------------------------------------------------
Short-term securities.......................... $ 10,178,052 $ 335,000 $ 19,304,389 $ 964,000 $ 45,662,541
---------------------------------------------------------------------
---------------------------------------------------------------------
<CAPTION>
GROWTH/
PHOENIX INTERNATIONAL
ALLIANCE INVESTMENT PROVIDENT GLOBAL DIVERSIFIED
GROWTH COUNSEL GROWTH EQUITIES EQUITIES
---------------------------------------------------------------------
<S> <C>
ASSETS:
Investment securities, at value*............... $379,243,925 $163,462,090 $154,538,664 $239,160,707 $147,409,860
Short-term securities*........................ 1,130,589 22,848,833 -- 10,826,000 --
Repurchase agreements (cost equals market)..... -- -- 6,998,000 -- 10,817,000
Cash........................................... 893 1,900 79 931 543
Foreign currency............................... -- -- -- 183,362 209,589
Receivables for--
Dividends and accrued interest................ 184,116 189,834 67,208 521,766 387,331
Fund shares sold............................... 807,750 104,831 223,222 241,255 525,802
Foreign currency contracts..................... -- -- -- -- 3,441,779
Sales of investments........................... 3,127,265 -- 400,831 520,538 323,521
Variation margin on futures contracts.......... 13,800 -- -- -- --
Deferred organizational expenses............... 4,493 5,069 4,493 4,493 --
Prepaid expenses............................... 8,444 5,299 4,380 6,968 3,989
Unrealized appreciation on forward foreign
currency contracts............................ -- -- -- -- 1,120,357
Due from adviser............................... -- -- -- -- --
---------------------------------------------------------------------
384,521,275 186,617,856 162,236,877 251,466,020 164,239,771
---------------------------------------------------------------------
LIABILITIES
Payables for --
Fund shares redeemed.......................... 172,208 102,648 56,930 67,053 29,170
Management fees............................... 179,786 97,211 103,593 153,805 122,121
Foreign currency contracts.................... -- -- -- 3,431,383
Purchases of investments...................... 2,728,676 -- 1,964,853 4,617,059 3,367,273
Other accrued expenses......................... 73,932 50,419 38,456 146,097 164,908
Unrealized depreciation on forward foreign
currency contracts............................ -- -- -- -- 116,523
Due to custodian bank.......................... -- -- -- -- --
---------------------------------------------------------------------
3,154,602 250,278 2,163,832 4,984,014 7,231,378
---------------------------------------------------------------------
NET ASSETS..................................... $381,366,673 $186,367,578 $160,073,045 $246,482,006 $157,008,393
---------------------------------------------------------------------
---------------------------------------------------------------------
Shares of beneficial interest outstanding
(unlimited shares authorized).................. 20,365,649 12,955,501 10,189,121 16,515,390 13,810,494
Net asset value per share...................... $18.73 $14.39 $15.71 $14.92 $11.37
---------------------------------------------------------------------
---------------------------------------------------------------------
COMPOSITION OF NET ASSETS:
Capital paid in................................ $290,961,176 $141,611,796 $109,285,958 $201,906,166 $144,459,565
Accumulated undistributed net investment
income........................................ 1,193,834 1,322,795 -- 2,209,001 4,077,453
Accumulated undistributed net realized gain
(loss on investments, future contracts
and options contracts......................... 21,987,346 16,104,014 5,451,594 11,975,206 1,101,846
Unrealized appreciation (depreciation) on
investments................................... 66,826,817 27,328,973 45,335,493 30,389,997 6,372,681
Unrealized foreign exchange gain (loss) on
other assets and liabilities.................. -- -- -- 1,636 996,848
Unrealized appreciation on future contracts.... 397,500 -- -- -- --
---------------------------------------------------------------------
---------------------------------------------------------------------
$381,366,673 $186,367,578 $160,073,045 $246,482,006 $157,008,393
---------------------------------------------------------------------
---------------------------------------------------------------------
* Cost
Investment securities.......................... $312,417,108 $136,132,691 $109,203,171 $208,770,710 $141,037,179
---------------------------------------------------------------------
---------------------------------------------------------------------
Short-term securities.......................... $ 1,130,589 $ 22,849,259 $ -- $ 10,826,000 $ --
---------------------------------------------------------------------
---------------------------------------------------------------------
<CAPTION>
AGGRESSIVE
GROWTH
---------------------------------------------------------------------
ASSETS:
Investment securities, at value*............... $32,090,080
Short-term securities*........................ --
Repurchase agreements (cost equals market)..... 2,812,000
Cash........................................... --
Foreign currency............................... --
Receivables for--
Dividends and accrued interest................ 7,634
Fund shares sold............................... 178,373
Foreign currency contracts..................... --
Sales of investments........................... 148,677
Variation margin on futures contracts.......... --
Deferred organizational expenses............... --
Prepaid expenses............................... 597
Unrealized appreciation on forward foreign
currency contracts............................ --
Due from adviser............................... --
---------------------------------------------------------------------
35,237,361
---------------------------------------------------------------------
LIABILITIES
Payables for --
Fund shares redeemed.......................... 3,918
Management fees............................... 19,189
Foreign currency contracts.................... --
Purchases of investments...................... 30,543
Other accrued expenses......................... 16,658
Unrealized depreciation on forward foreign
currency contracts............................ --
Due to custodian bank.......................... 42,751
---------------------------------------------------------------------
113,059
---------------------------------------------------------------------
NET ASSETS..................................... $35,124,302
---------------------------------------------------------------------
---------------------------------------------------------------------
Shares of beneficial interest outstanding
(unlimited shares authorized).................. 3,389,423
Net asset value per share...................... $10.36
---------------------------------------------------------------------
---------------------------------------------------------------------
COMPOSITION OF NET ASSETS:
Capital paid in................................ $32,699,261
Accumulated undistributed net investment
income........................................ 39,730
Accumulated undistributed net realized gain
(loss on investments, future contracts
and options contracts......................... (705,902)
Unrealized appreciation (depreciation) on
investments................................... 3,091,213
Unrealized foreign exchange gain (loss) on
other assets and liabilities.................. --
Unrealized appreciation on future contracts.... --
---------------------------------------------------------------------
---------------------------------------------------------------------
$35,124,302
---------------------------------------------------------------------
---------------------------------------------------------------------
* Cost
Investment securities.......................... $28,998,867
---------------------------------------------------------------------
---------------------------------------------------------------------
Short-term securities.......................... $ --
---------------------------------------------------------------------
---------------------------------------------------------------------
</TABLE>
95
<PAGE> 96
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1996
<TABLE>
<CAPTION>
BALANCED/
WORLDWIDE PHOENIX
CASH GLOBAL CORPORATE HIGH-YIELD HIGH SUNAMERICA INVESTMENT
MANAGEMENT BOND BOND BOND INCOME BALANCED# COUNSEL
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Income:
Interest......................... $7,122,754 $3,981,095 $2,327,756 $ 9,574,555 $4,274,935 $ 62,733 $1,466,951
Dividends........................ -- -- -- 46,590 15,366 22,547 358,182
----------------------------------------------------------------------------------------
Total income*................ 7,122,754 3,981,095 2,327,756 9,621,145 4,290,301 85,280 1,825,133
----------------------------------------------------------------------------------------
Expenses:
Management fees.................. 694,655 458,390 230,031 638,948 368,821 20,449 354,683
Custodian fees................... 57,365 74,265 53,480 46,245 42,745 14,675 50,550
Reports to investors............. 17,845 9,715 16,635 14,330 5,900 735 8,300
Auditing fees.................... 10,990 10,400 7,245 13,005 8,515 5,350 11,445
Amortization of organizational
expenses....................... 7,192 3,964 3,964 3,832 1,798 -- --
Trustees' fees................... 2,285 1,207 507 1,705 628 74 913
Legal fees....................... 905 145 5,775 700 155 124 940
Interest expense................. -- -- -- 7,414 7,207 -- --
Other expenses................... 4,114 2,324 724 2,944 603 297 682
----------------------------------------------------------------------------------------
Total expenses before
reimbursement................ 795,351 560,410 318,361 729,123 436,372 41,704 427,513
Expenses reimbursed by the
investment adviser........... -- -- -- -- -- (12,492) --
----------------------------------------------------------------------------------------
Net investment income (loss)....... 6,327,403 3,420,685 2,009,395 8,892,022 3,853,929 56,068 1,397,620
----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gain (loss) on
investments.................... (1,609) 845,133 (242,797) 567,983 2,578,602 28,763 2,107,376
Net realized gain (loss) on
futures and options
contracts...................... -- 59,164 (180,880) -- -- -- --
Net realized foreign exchange
gain (loss) on other assets and
liabilities.................... -- 1,545,047 -- -- 785 -- --
Change in unrealized
appreciation/depreciation on
investments.................... (9,491) 1,124,599 647,548 4,227,884 2,512,138 822,808 3,902,857
Change in unrealized foreign
exchange gain/loss on other
assets and liabilities......... -- (253,318) -- -- (4,477) -- --
Change in unrealized
appreciation/depreciation on
futures contracts.............. -- -- (39,889) -- -- -- --
----------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments and
foreign currencies............. (11,100) 3,320,625 183,982 4,795,867 5,087,048 851,571 6,010,233
----------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS........ $6,316,303 $6,741,310 $2,193,377 $13,687,889 $8,940,977 $907,639 $7,407,853
========================================================================================
---------------
* Net of foreign withholding taxes
on interest and dividends of:..... $ -- $ 44,228 $ 500 $ -- $ 994 $ 216 $ 1,389
========================================================================================
</TABLE>
# Commenced operations June 3, 1996
See Notes to Financial Statements
- ---------------------
96
<PAGE> 97
<TABLE>
<CAPTION>
ASSET GROWTH- FEDERATED VENTURE ALLIANCE
ALLOCATION UTILITY# INCOME VALUE# VALUE GROWTH
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Income:
Interest...................................... $ 7,138,642 $ 6,557 $ 624,063 $ 9,153 $ 1,803,954 $ 273,003
Dividends..................................... 3,835,134 94,594 3,790,860 64,547 4,411,641 2,624,079
---------------------------------------------------------------------------------
Total income*............................ 10,973,776 101,151 4,414,923 73,700 6,215,595 2,897,082
---------------------------------------------------------------------------------
Expenses:
Management fees............................... 1,616,647 13,890 1,476,902 23,973 2,305,064 1,522,222
Custodian fees................................ 128,585 15,695 77,065 19,060 152,435 81,580
Reports to investors.......................... 39,430 560 36,565 1,120 51,375 38,740
Auditing fees................................. 32,815 5,030 33,600 5,440 48,620 37,230
Amortization or organizational expenses....... 3,964 -- 3,832 -- -- 3,832
Trustees' fees................................ 4,510 74 4,207 74 5,902 4,522
Legal fees.................................... 3,065 124 3,304 277 5,930 3,850
Interest expense.............................. -- -- -- -- -- --
Other expenses................................ 7,799 289 6,127 296 5,331 5,668
---------------------------------------------------------------------------------
Total expenses before reimbursement...... 1,836,815 35,662 1,641,602 50,240 2,574,657 1,697,644
Expenses reimbursed by the investment
adviser................................. -- (16,216) -- (16,677) -- --
---------------------------------------------------------------------------------
Net investment income (loss)................... 9,136,961 81,705 2,773,321 40,137 3,640,938 1,199,438
=================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments........ 19,730,122 12,853 13,516,427 (22,475) 9,692,354 21,793,902
Net realized gain (loss) on futures and options
contracts..................................... 391,668 -- 1,426,165 -- -- 433,180
Net realized foreign exchange gain (loss) on
other assets and liabilities.................. 89 (230) 29 -- 2,021 --
Change in unrealized appreciation/depreciation
on investment................................. 18,681,439 287,691 42,693,932 1,196,109 75,918,377 46,485,737
Change in unrealized foreign exchange gain/loss
on other assets and liabilities............... -- 139 -- -- 341 --
Change in unrealized appreciation/depreciation
on futures contracts.......................... 1,166,581 -- 962,381 -- -- 300,750
---------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on
investments and foreign currencies............ 39,969,899 300,453 58,598,934 1,173,634 85,613,093 69,013,569
---------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................... $49,106,860 $382,158 $61,372,255 $ 1,213,771 $89,254,031 $70,213,007
=================================================================================
* Net of foreign withholding taxes on interest
and dividends of: ............................ $ 11,115 $ 3,735 $ 4,119 $ 564 $ 30,896 $ 3,179
=================================================================================
<CAPTION>
GROWTH/
PHOENIX INTERNATIONAL
INVESTMENT PROVIDENT GLOBAL DIVERSIFIED AGGRESSIVE
COUNSEL GROWTH EQUITIES EQUITIES GROWTH#
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Income:
Interest...................................... $ 1,005,335 $ 432,804 $ 575,056 $ 283,647 $ 104,281
Dividends..................................... 1,524,769 723,018 3,650,127 1,830,322 26,838
-------------------------------------------------------------------
Total income*............................ 2,530,104 1,155,822 4,225,183 2,113,969 131,119
-------------------------------------------------------------------
Expenses:
Management fees............................... 1,072,976 1,073,769 1,627,510 1,025,593 65,277
Custodian fees................................ 72,015 57,725 394,465 563,555 19,145
Reports to investors.......................... 23,460 18,935 32,000 17,420 2,075
Auditing fees................................. 20,405 17,390 26,665 18,000 7,190
Amortization or organizational expenses....... 3,832 3,832 3,832 1,798 --
Trustees' fees................................ 2,882 2,174 3,547 2,122 224
Legal fees.................................... 1,290 1,090 1,880 1,925 333
Interest expense.............................. -- -- -- -- --
Other expenses................................ 5,978 4,362 6,523 2,181 330
-------------------------------------------------------------------
Total expenses before reimbursement...... 1,202,838 1,179,277 2,096,422 1,632,594 94,574
Expenses reimbursed by the investment
adviser................................. -- -- -- -- (3,185)
-------------------------------------------------------------------
Net investment income (loss)................... 1,327,266 (23,455) 2,128,761 481,375 39,730
===================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments........ 16,211,794 8,612,831 12,300,321 1,688,079 (705,902)
Net realized gain (loss) on futures and options
contracts..................................... -- -- -- -- --
Net realized foreign exchange gain (loss) on
other assets and liabilities.................. (510) -- 496,594 5,292,994 --
Change in unrealized appreciation/depreciation
on investment................................. 10,855,474 17,288,052 19,341,166 5,555,457 3,091,213
Change in unrealized foreign exchange gain/loss
on other assets and liabilities............... 21 -- (27,011) (813,250) --
Change in unrealized appreciation/depreciation
on futures contracts.......................... -- -- -- -- --
-------------------------------------------------------------------
Net realized and unrealized gain (loss) on
investments and foreign currencies............ 27,066,779 25,900,883 32,111,070 11,723,280 2,385,311
-------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................... $28,394,045 $25,877,428 $34,239,831 $12,204,655 $2,425,041
===================================================================
* Net of foreign withholding taxes on interest
and dividends of: ............................ $ 13,195 $ 10,805 $ 360,697 $ 247,089 $ 250
===================================================================
</TABLE>
97
<PAGE> 98
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED NOVEMBER 30, 1996
<TABLE>
<CAPTION>
CASH GLOBAL CORPORATE HIGH-YIELD
MANAGEMENT BOND BOND BOND
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......................... $ 6,327,403 $ 3,420,685 $ 2,009,395 $ 8,892,022
Net realized gain (loss) on investments............... (1,609) 845,133 (242,797) 567,983
Net realized gain (loss) on futures and options
contracts............................................ -- 59,164 (180,880) --
Net realized foreign exchange gain (loss) on other
assets and liabilities............................... -- 1,545,047 -- --
Change in unrealized appreciation/depreciation on
investments.......................................... (9,491) 1,124,599 647,548 4,227,884
Change in unrealized foreign exchange gain/loss on
other assets and liabilities......................... -- (253,318) -- --
Change in unrealized appreciation/depreciation on
futures contracts.................................... -- -- (39,889) --
---------------------------------------------------------
Net increase in net assets resulting from
operations........................................... 6,316,303 6,741,310 2,193,377 13,687,889
---------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income................. (4,240,000) (4,060,000) (1,225,000) (7,420,000)
Distribution from net realized gain on investments... (4,750) -- -- --
---------------------------------------------------------
Total dividends and distributions to shareholders..... (4,244,750) (4,060,000) (1,225,000) (7,420,000)
---------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold............................. 615,571,205 26,461,284 20,121,281 89,355,894
Proceeds from shares issued for reinvestment of
dividends and distributions.......................... 4,244,750 4,060,000 1,225,000 7,420,000
Cost of shares repurchased............................ (621,371,905) (24,740,221) (14,581,771) (71,988,357)
---------------------------------------------------------
Net increase (decrease) in net assets resulting from
capital share transactions........................... (1,555,950) 5,781,063 6,764,510 24,787,537
---------------------------------------------------------
TOTAL INCREASE IN NET ASSETS.......................... 515,603 8,462,373 7,732,887 31,055,426
NET ASSETS:
Beginning of period................................... 90,731,193 59,759,044 29,474,520 82,173,667
---------------------------------------------------------
End of period......................................... $ 91,246,796 $ 68,221,417 $ 37,207,407 $113,229,093
=========================================================
---------------
Accumulated undistributed net investment income....... $ 6,322,183 $ 4,377,089 $ 2,004,899 $ 8,882,962
=========================================================
Shares issued and repurchased:
Sold.................................................. 57,928,895 2,437,840 1,891,179 8,529,658
Issued in reinvestment of dividends and
distributions........................................ 408,149 391,137 118,015 744,233
Repurchased........................................... (58,340,347) (2,268,851) (1,379,014) (6,827,580)
---------------------------------------------------------
Net increase (decrease)............................... (3,303) 560,126 630,180 2,446,311
=========================================================
<CAPTION>
BALANCED/
WORLDWIDE PHOENIX
HIGH SUNAMERICA INVESTMENT
INCOME BALANCED# COUNSEL
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......................... $ 3,853,929 $ 56,068 $ 1,397,620
Net realized gain (loss) on investments............... 2,824,669 28,763 2,107,376
Net realized gain (loss) on futures and options
contracts............................................ -- -- --
Net realized foreign exchange gain (loss) on other
assets and liabilities............................... (245,282) -- --
Change in unrealized appreciation/depreciation on
investments.......................................... 2,512,138 822,808 3,902,857
Change in unrealized foreign exchange gain/loss on
other assets and liabilities......................... (4,477) -- --
Change in unrealized appreciation/depreciation on
futures contracts.................................... -- -- --
-----------------------------------------
Net increase in net assets resulting from
operations........................................... 8,940,977 907,639 7,407,853
-----------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income................. (1,700,000) -- (540,000)
Distribution from net realized gain on investments... (100,000) -- (890,000)
-----------------------------------------
Total dividends and distributions to shareholders..... (1,800,000) -- (1,430,000)
-----------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold............................. 48,071,872 11,344,623 44,916,086
Proceeds from shares issued for reinvestment of
dividends and distributions.......................... 1,800,000 -- 1,430,000
Cost of shares repurchased............................ (29,323,432) (2,028,468) (14,731,916)
-----------------------------------------
Net increase (decrease) in net assets resulting from
capital share transactions........................... 20,548,440 9,316,155 31,614,170
-----------------------------------------
TOTAL INCREASE IN NET ASSETS.......................... 27,689,417 10,223,794 37,592,023
NET ASSETS:
Beginning of period................................... 21,515,080 -- 32,428,535
-----------------------------------------
End of period......................................... $ 49,204,497 $10,223,794 $ 70,020,558
=========================================
Accumulated undistributed net investment income....... $ 3,097,896 $ 56,068 $ 1,258,279
=========================================
Shares issued and repurchased:
Sold.................................................. 4,060,525 1,113,491 3,604,718
Issued in reinvestment of dividends and
distributions........................................ 166,821 -- 117,502
Repurchased........................................... (2,425,678) (194,594) (1,184,892)
------------------------------------------
Net increase (decrease)............................... 1,801,668 918,897 2,537,328
==========================================
</TABLE>
# Commenced operations June 3, 1996
See Notes to Financial Statements
- ---------------------
98
<PAGE> 99
<TABLE>
<CAPTION>
ASSET GROWTH- FEDERATED
ALLOCATION UTILITY# INCOME VALUE
----------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)................................. $ 9,136,961 $ 81,705 $ 2,773,321 $ 40,137
Net realized gain (loss) on investments...................... 19,730,122 12,853 13,516,427 (22,475)
Net realized gain (loss) on futures and options contracts.... 391,668 -- 1,426,165 --
Net realized foreign exchange gain (loss) on other
assets and liabilities...................................... 89 (230) 29 --
Change in unrealized appreciation/depreciation on
investments................................................. 18,681,439 287,691 42,693,932 1,196,109
Change in unrealized foreign exchange gain/loss on
other assets and liabilities................................ -- 139 -- --
Change in unrealized appreciation/depreciation on futures
contracts................................................... 1,166,581 -- 962,381 --
----------------------------------------------------------
Net increase in net assets resulting from operations......... 49,106,860 382,158 61,372,255 1,213,771
----------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income........................ (5,505,000) -- (1,680,000) --
Distribution from net realized gain on investments.......... (6,805,000) -- (5,975,000) --
----------------------------------------------------------
Total dividends and distributions to shareholders............ (12,310,000) -- (7,655,000) --
----------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.................................... 108,836,939 6,090,461 145,602,473 11,583,467
Proceeds from shares issued for reinvestment of dividends
and distributions........................................... 12,310,000 -- 7,655,000 --
Cost of shares repurchased................................... (41,391,763) (173,972) (52,792,476) (337,710)
----------------------------------------------------------
Net increase (decrease) in net assets resulting from capital
share transactions.......................................... 79,755,176 5,916,489 100,464,997 11,245,757
----------------------------------------------------------
TOTAL INCREASE IN NET ASSETS................................. 116,552,036 6,298,647 154,182,252 12,459,528
NET ASSETS:
Beginning of period.......................................... 199,836,390 -- 171,281,073 --
----------------------------------------------------------
End of period................................................ $316,388,426 $6,298,647 $325,463,325 $ 12,459,528
==========================================================
Accumulated undistributed net investment income.............. $ 8,660,644 $ 81,475 $ 2,766,743 $ 40,137
==========================================================
Shares issued and repurchased:
Sold......................................................... 8,296,399 602,909 9,953,598 1,158,140
Issued in reinvestment of dividends and distributions........ 970,055 -- 541,755 --
Repurchased.................................................. (3,164,619) (17,033) (3,630,349) (33,890)
----------------------------------------------------------
Net increase (decrease)...................................... 6,101,835 585,876 6,865,004 1,124,250
==========================================================
<CAPTION>
GROWTH/
PHOENIX
VENTURE ALLIANCE INTERNATIONAL PROVIDENT
VALUE GROWTH COUNSEL GROWTH
----------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)................................. $ 3,640,938 $ 1,199,438 $ 1,327,266 $ (23,455)
Net realized gain (loss) on investments...................... 9,692,354 21,793,902 16,211,794 8,612,831
Net realized gain (loss) on futures and options contracts.... -- 433,180 -- --
Net realized foreign exchange gain (loss) on other
assets and liabilities...................................... 2,021 -- (510) --
Change in unrealized appreciation/depreciation on
investments................................................. 75,918,377 46,485,737 10,855,474 17,288,052
Change in unrealized foreign exchange gain/loss on
other assets and liabilities................................ 341 -- 21 --
Change in unrealized appreciation/depreciation on futures
contracts................................................... -- 300,750 -- --
---------------------------------------------------------
Net increase in net assets resulting from operations......... 89,254,031 70,213,007 28,394,045 25,877,428
---------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income........................ (1,150,000) (483,000) (1,265,000) --
Distribution from net realized gain on investments.......... (1,631,000) (13,185,000) (10,645,000) --
---------------------------------------------------------
Total dividends and distributions to shareholders............ (2,781,000) (13,668,000) (11,910,000) --
---------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.................................... 358,199,882 247,316,545 46,376,696 55,935,417
Proceeds from shares issued for reinvestment of dividends
and distributions........................................... 2,781,000 13,668,000 11,910,000 --
Cost of shares repurchased................................... (85,948,539) (104,032,606) (38,313,646) (37,015,839)
---------------------------------------------------------
Net increase (decrease) in net assets resulting from capital
share transactions.......................................... 275,032,343 156,951,939 19,973,050 18,919,578
---------------------------------------------------------
TOTAL INCREASE IN NET ASSETS................................. 361,505,374 213,496,946 36,457,095 44,797,006
NET ASSETS:
Beginning of period.......................................... 154,907,997 167,869,727 149,910,483 115,276,039
---------------------------------------------------------
End of period................................................ $516,413,371 $381,366,673 $186,367,578 $160,073,045
=========================================================
Accumulated undistributed net investment income.............. $ 3,382,016 $ 1,193,834 $ 1,322,795 $ --
=========================================================
Shares issued and repurchased:
Sold......................................................... 24,918,067 15,394,232 3,516,917 4,113,284
Issued in reinvestment of dividends and distributions........ 208,003 893,333 949,004 --
Repurchased.................................................. (6,065,330) (6,661,296) (2,922,221) (2,724,390)
---------------------------------------------------------
Net increase (decrease)...................................... 19,060,740 9,626,269 1,543,700 1,388,894
=========================================================
<CAPTION>
INTERNATIONAL
GLOBAL DIVERSIFIED AGGRESSIVE
EQUITIES EQUITIES GROWTH#
-----------------------------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss)................................. $ 2,128,761 $ 481,375 $ 39,730
Net realized gain (loss) on investments...................... 12,300,321 1,688,079 (705,902)
Net realized gain (loss) on futures and options contracts.... -- -- --
Net realized foreign exchange gain (loss) on other
assets and liabilities...................................... 496,594 5,292,994 --
Change in unrealized appreciation/depreciation on
investments................................................. 19,341,166 5,555,457 3,091,213
Change in unrealized foreign exchange gain/loss on
other assets and liabilities................................ (27,011) (813,250) --
Change in unrealized appreciation/depreciation on futures
contracts................................................... -- -- --
-----------------------------------------
Net increase in net assets resulting from operations......... 34,239,831 12,204,655 2,425,041
-----------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income........................ (1,885,000) (1,350,000) --
Distribution from net realized gain on investments.......... (4,480,000) -- --
-----------------------------------------
Total dividends and distributions to shareholders............ (6,365,000) (1,350,000) --
-----------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.................................... 99,072,900 133,585,152 39,091,029
Proceeds from shares issued for reinvestment of dividends
and distributions........................................... 6,365,000 1,350,000 --
Cost of shares repurchased................................... (52,582,422) (37,742,073) (6,391,768)
-----------------------------------------
Net increase (decrease) in net assets resulting from capital
share transactions.......................................... 52,855,478 97,193,079 32,699,261
-----------------------------------------
TOTAL INCREASE IN NET ASSETS................................. 80,730,309 108,047,734 35,124,302
NET ASSETS:
Beginning of period.......................................... 165,751,697 48,960,659 --
-----------------------------------------
End of period................................................ $246,482,006 $157,008,393 $35,124,302
=========================================
Accumulated undistributed net investment income.............. $ 2,209,001 $ 4,077,453 $ 39,730
=========================================
Shares issued and repurchased:
Sold......................................................... 7,165,202 12,354,619 4,051,127
Issued in reinvestment of dividends and distributions........ 472,181 130,941 --
Repurchased.................................................. (3,815,033) (3,499,995) (661,704)
-----------------------------------------
Net increase (decrease)...................................... 3,822,350 8,985,565 3,389,423
=========================================
</TABLE>
99
<PAGE> 100
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED NOVEMBER 30, 1995
<TABLE>
<CAPTION>
WORLDWIDE
CASH GLOBAL CORPORATE HIGH-YIELD HIGH
MANAGEMENT BOND BOND BOND INCOME
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)................... $ 4,241,505 $ 2,876,243 $ 1,224,668 $ 7,526,895 $1,504,113
Net realized gain (loss) on investments........ 5,110 1,618,834 581,976 (3,711,235) 76,600
Net realized gain (loss) on futures and options
contracts.................................... -- -- 13,918 -- --
Net realized foreign exchange gain (loss) on
other assets and liabilities................. -- 1,319,839 -- -- --
Change in unrealized appreciation/depreciation
on investments............................... 44,053 1,593,149 1,262,150 4,427,627 484,883
Change in unrealized foreign exchange gain/loss
on other assets and liabilities.............. -- 1,814 -- -- --
Change in unrealized appreciation/depreciation
on futures contracts......................... -- -- 39,889 -- --
--------------------------------------------------------------------
Net increase in net assets resulting from
operations................................... 4,290,668 7,409,879 3,122,601 8,243,287 2,065,596
--------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income......... (2,210,000) (1,700,000) (885,000) (6,340,000) (114,929)
Distributions from net realized gain on
investments................................ -- -- -- -- --
--------------------------------------------------------------------
Total dividends and distributions to
shareholders................................. (2,210,000) (1,700,000) (885,000) (6,340,000) (114,929)
--------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold...................... 415,378,253 22,230,068 22,925,314 70,702,486 13,740,334
Proceeds from shares issued for reinvestment of
dividends and distributions.................. 2,210,000 1,700,000 885,000 6,340,000 114,929
Cost of shares repurchased..................... (418,035,564) (14,423,490) (12,442,153) (52,574,843) (4,768,369)
--------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from capital share transactions.............. (447,311) 9,506,578 11,368,161 24,467,643 9,086,894
--------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS................... 1,633,357 15,216,457 13,605,762 26,370,930 11,037,561
NET ASSETS:
Beginning of year.............................. 89,097,836 44,542,587 15,868,758 55,802,737 10,477,519
--------------------------------------------------------------------
End of year.................................... $ 90,731,193 $59,759,044 $29,474,520 $82,173,667 $21,515,080
========================================================================
---------------
Accumulated undistributed net investment income
(loss)....................................... $ 4,234,947 $ 3,620,109 $ 1,219,884 $ 7,410,940 $1,431,913
========================================================================
Shares issued and repurchased:
Sold........................................... 39,465,595 2,131,775 2,218,395 6,846,915 1,299,782
Issued in reinvestment of dividends and
distributions................................ 214,355 170,000 90,306 648,925 11,873
Repurchased.................................... (39,709,537) (1,407,509) (1,212,881) (5,097,408) (480,433)
--------------------------------------------------------------------
Net increase (decrease)........................ (29,587) 894,266 1,095,820 2,398,432 831,222
========================================================================
</TABLE>
See Notes to Financial Statements
- ---------------------
100
<PAGE> 101
<TABLE>
<CAPTION>
BALANCED/
PHOENIX
INVESTMENT ASSET GROWTH- VENTURE
COUNSEL ALLOCATION INCOME VALUE
--------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income (loss)..................................... $ 406,341 $ 5,320,722 $ 1,675,560 $ 904,551
Net realized gain (loss) on investments.......................... 875,469 6,792,943 6,546,892 1,620,396
Net realized gain (loss) on futures and options contracts........ -- 37,040 -- --
Net realized foreign exchange gain (loss) on other assets and
liabilities..................................................... -- -- 76 --
Change in unrealized appreciation/depreciation on investments.... 1,971,928 20,689,780 26,098,737 15,272,123
Change in unrealized foreign exchange gain/loss on other assets
and liabilities................................................. -- -- -- --
Change in unrealized appreciation/depreciation on future
contracts....................................................... -- 94,950 -- --
--------------------------------------------------------------
Net increase in net assets resulting from operations............. 3,253,738 32,935,435 34,321,265 17,797,070
--------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income............................ (11,237) (2,240,000) (875,000) (23,311)
Distributions from net realized gain on investments............. -- (425,000) -- --
--------------------------------------------------------------
Total dividends and distributions to shareholders................ (11,237) (2,665,000) (875,000) (23,311)
--------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold........................................ 30,928,111 91,078,058 79,200,929 164,118,300
Proceeds from shares issued for reinvestment of dividends and
distributions................................................... 11,237 2,665,000 875,000 23,311
Cost of shares repurchased....................................... (3,269,069) (31,032,947) (27,140,302) (31,455,895)
--------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS..................................... 27,670,279 62,710,111 52,935,627 132,685,716
--------------------------------------------------------------
30,912,780 92,980,546 86,381,892 150,459,475
NET ASSETS:
Beginning of year................................................ 1,515,755 106,855,844 84,899,181 4,448,522
--------------------------------------------------------------
End of year...................................................... $32,428,535 $199,836,390 $171,281,073 $154,907,997
==============================================================
Accumulated undistributed net investment income (loss)........... $ 399,630 $ 5,029,483 $ 1,673,393 $ 889,057
==============================================================
Shares issued and repurchased:
Sold............................................................. 2,742,183 7,788,903 6,452,877 13,646,177
Issued in reinvestment of dividends and distributions............ 1,132 243,157 77,502 2,359
Repurchased...................................................... (296,843) (2,699,219) (2,260,341) (2,599,805)
--------------------------------------------------------------
Net increase (decrease).......................................... 2,446,472 5,332,841 4,270,038 11,048,731
==============================================================
<CAPTION>
GROWTH/
PHOENIX
ALLIANCE INVESTMENT PROVIDENT GLOBAL
GROWTH COUNSEL GROWTH EQUITIES
---------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income (loss)..................................... $ 481,532 $ 1,263,637 $ (45,258) $ 1,450,200
Net realized gain (loss) on investments.......................... 13,305,824 19,383,952 240,218 5,003,696
Net realized gain (loss) on futures and options contracts........ 47,744 -- -- (524,955)
Net realized foreign exchange gain (loss) on other assets and
liabilities..................................................... -- 701 -- 720,956
Change in unrealized appreciation/depreciation on investments.... 21,063,685 14,865,880 25,016,207 13,392,395
Change in unrealized foreign exchange gain/loss on other assets
and liabilities................................................. -- (21) -- 15,377
Change in unrealized appreciation/depreciation on future
contracts....................................................... 96,750 -- -- 182,708
---------------------------------------------------------------
Net increase in net assets resulting from operations............. 34,995,535 35,514,149 25,211,167 20,240,377
---------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income............................ (155,000) (1,450,000) (200,000) (855,000)
Distributions from net realized gain on investments............. (725,000) -- -- (3,190,000)
---------------------------------------------------------------
Total dividends and distributions to shareholders................ (880,000) (1,450,000) (200,000) (4,045,000)
---------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold........................................ 168,074,086 45,890,799 46,200,686 79,044,610
Proceeds from shares issued for reinvestment of dividends and
distributions................................................... 880,000 1,450,000 200,000 4,045,000
Cost of shares repurchased....................................... (88,413,178) (35,688,009) (31,477,920) (70,291,038)
---------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS..................................... 80,540,908 11,652,790 14,922,766 12,798,572
---------------------------------------------------------------
114,656,443 45,716,939 39,933,933 28,993,949
NET ASSETS:
Beginning of year................................................ 53,213,284 104,193,544 75,342,106 136,757,748
---------------------------------------------------------------
End of year...................................................... $167,869,727 $149,910,483 $115,276,039 $165,751,697
===============================================================
Accumulated undistributed net investment income (loss)........... $ 477,396 $ 1,261,039 $ -- $ 1,468,646
===============================================================
Shares issued and repurchased:
Sold............................................................. 12,084,699 4,046,435 3,971,874 6,436,345
Issued in reinvestment of dividends and distributions............ 76,126 135,387 18,536 357,648
Repurchased...................................................... (6,421,749) (3,175,785) (2,684,472) (5,815,859)
---------------------------------------------------------------
Net increase (decrease).......................................... 5,739,076 1,006,037 1,305,938 978,134
===============================================================
<CAPTION>
INTERNATIONAL
DIVERSIFIED
EQUITIES
------------
<S> <C>
OPERATIONS
Net investment income (loss)..................................... $ 214,789
Net realized gain (loss) on investments.......................... (585,776)
Net realized gain (loss) on futures and options contracts........ --
Net realized foreign exchange gain (loss) on other assets and
liabilities..................................................... (506,494)
Change in unrealized appreciation/depreciation on investments.... 1,120,932
Change in unrealized foreign exchange gain/loss on other assets
and liabilities................................................. 1,810,094
Change in unrealized appreciation/depreciation on future
contracts....................................................... --
------------
Net increase in net assets resulting from operations............. 2,053,545
------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income............................ (121,869)
Distributions from net realized gain on investments............. --
------------
Total dividends and distributions to shareholders................ (121,869)
------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold........................................ 58,139,793
Proceeds from shares issued for reinvestment of dividends and
distributions................................................... 121,869
Cost of shares repurchased....................................... (23,670,269)
------------
TOTAL INCREASE IN NET ASSETS..................................... 34,591,393
------------
36,523,069
NET ASSETS:
Beginning of year................................................ 12,437,590
------------
End of year...................................................... $ 48,960,659
============
Accumulated undistributed net investment income (loss)........... $ (346,916)
============
Shares issued and repurchased:
Sold............................................................. 6,011,154
Issued in reinvestment of dividends and distributions............ 12,721
Repurchased...................................................... (2,470,598)
------------
Net increase (decrease).......................................... 3,553,277
============
</TABLE>
101
<PAGE> 102
- ---------------------
SUNAMERICA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION: SunAmerica Series Trust
("the Trust"), organized as a Massachusetts business trust on September 11,
1992, is an open-end management investment company. It was established to
provide a funding medium for certain annuity contracts issued by Variable
Separate Account (the "Account"), a separate account of Anchor National Life
Insurance Company ("Life Company"), organized under the laws of the state of
Arizona.
The Trust issues 18 separate series of shares ("Portfolios"), each of which
represents a separate managed portfolio of securities with its own investment
objectives. The Trustees may establish additional series in the future. The
current Portfolios are the Cash Management Portfolio, Global Bond Portfolio,
Corporate Bond Portfolio (formerly, the Fixed Income Portfolio), High-Yield Bond
Portfolio, Worldwide High Income Portfolio, SunAmerica Balanced Portfolio,
Balanced/Phoenix Investment Counsel Portfolio, Asset Allocation Portfolio,
Utility Portfolio, Growth-Income Portfolio, Federated Value Portfolio, Venture
Value Portfolio, Alliance Growth Portfolio, Growth/Phoenix Investment Counsel
Portfolio, Provident Growth Portfolio, Global Equities Portfolio, International
Diversified Equities Portfolio and Aggressive Growth Portfolio. All shares may
be purchased or redeemed by the Account at net asset value without any sales or
redemption charge.
The investment objectives for each portfolio are as follows:
The Cash Management Portfolio seeks high current yield while preserving capital
by investing in a diversified selection of money market instruments.
The Global Bond Portfolio seeks a high total return, emphasizing current income
and, to a lesser extent, providing opportunities for capital appreciation,
through investment in high quality fixed-income securities of U.S. and foreign
issuers and through transactions in foreign currencies.
The Corporate Bond Portfolio seeks a high total return with only moderate price
risk by investing primarily in investment grade fixed-income securities.
The High-Yield Bond Portfolio seeks a high level of current income and
secondarily seeks capital appreciation by investing primarily in intermediate
and long-term corporate obligations, with emphasis on higher-yielding,
higher-risk, lower-rated or unrated securities.
The Worldwide High Income Portfolio seeks high current income and, secondarily,
capital appreciation, by investing primarily in a portfolio of high-yielding
fixed-income securities of issuers located throughout the world.
The SunAmerica Balanced Portfolio seeks to conserve principal by maintaining at
all times a balanced portfolio of stocks and bonds.
The Balanced/Phoenix Investment Counsel Portfolio seeks reasonable income,
long-term capital growth and conservation of capital by investing primarily in
common stocks and fixed-income securities, with an emphasis on income-producing
securities which appear to have some potential for capital enhancement.
The Asset Allocation Portfolio seeks high total return (including income and
capital gains) consistent with preservation of capital over the long-term
through a diversified portfolio that can include common stocks and other
securities having common stock characteristics, bonds and other intermediate and
long-term fixed-income securities and money market instruments (debt securities
maturing in one year or less) in any combination.
The Utility Portfolio seeks high current income and moderate capital
appreciation by investing primarily in the equity and debt securities of utility
companies.
The Growth-Income Portfolio seeks growth of capital and income by investing
primarily in common stocks or securities which demonstrate the potential for
appreciation and/or dividends.
The Federated Value Portfolio seeks growth of capital and income by investing
primarily in the securities of high quality companies.
The Venture Value Portfolio seeks to achieve growth of capital by investing
primarily in common stocks.
The Alliance Growth, Growth/Phoenix Investment Counsel and Provident Growth
Portfolios each seeks long-term growth of capital by investing primarily in
common stocks or securities with common stock characteristics which demonstrate
the potential for appreciation.
The Global Equities Portfolio seeks long-term growth of capital through
investment primarily in common stocks or securities of U.S. and foreign issuers
with common stock characteristics which demonstrate the potential for
appreciation and through transactions in foreign currencies.
- ---------------------
102
<PAGE> 103
The International Diversified Equities Portfolio seeks long-term capital
appreciation by investing in accordance with country weightings determined by
the Subadviser in common stocks of foreign issuers which, in the aggregate,
replicate broad country indices.
The Aggressive Growth Portfolio seeks long-term growth of capital through
investment primarily in equity securities of small capitalization growth
companies.
2. SIGNIFICANT ACCOUNTING POLICIES: The preparation of financial statements in
accordance with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from these estimates.
In the opinion of management of the Trust, the accompanying financial statements
contain all normal and recurring adjustments necessary for the fair presentation
of the financial position of the Trust at November 30, 1996, and the results of
its operations, the changes in its net assets and its financial highlights for
the periods then ended. The following is a summary of significant accounting
policies consistently followed by the Trust in the preparation of its financial
statements.
SECURITY VALUATIONS: Stocks are stated at value based upon closing sales
prices reported on recognized securities exchanges or, for listed securities
having no sales reported and for unlisted securities, upon last-reported bid
prices. Nonconvertible bonds, debentures, and other long-term debt securities
are valued at prices obtained for the day of valuation from a bond pricing
service of a major dealer in bonds when such prices are available; however, in
circumstances where the investment adviser deems it appropriate to do so, an
over-the-counter or exchange quotation at the mean of representative bid or
asked prices may be used. Securities traded primarily on securities exchanges
outside the United States are valued at the last sale price on such exchanges on
the day of valuation, or if there is no sale on the day of valuation, at the
last reported bid price. If a security's price is available from more than one
foreign exchange, a portfolio uses the exchange that is the primary market for
the security. Futures contracts are valued at the last sale price established
each day by the board of trade or exchange on which they are traded. Short-term
securities with original or remaining maturities in excess of 60 days are valued
at the mean of their quoted bid and ask prices. Short-term securities with 60
days or less to maturity are amortized to maturity based on their cost to the
Trust if acquired within 60 days of maturity or, if already held by the Trust on
the 60th day, are amortized to maturity based on the value determined on the
61st day. Securities for which quotations are not readily available are valued
at fair value as determined in good faith under the direction of the Trust's
Trustees.
REPURCHASE AGREEMENTS: The Trust's custodian takes possession of the
collateral pledged for investments in repurchase agreements. The underlying
collateral is valued daily on a mark-to-market basis to assure that the value,
including accrued interest, is at least equal to the repurchase price. In the
event of default of the obligation to repurchase, the Trust has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. If the seller defaults and the value of the collateral declines or
if bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by the Trust may be delayed or limited.
REVERSE REPURCHASE AGREEMENTS: Certain Portfolios may enter into reverse
repurchase agreements with institutions that the Portfolio's investment adviser
or subadviser has determined are creditworthy. Under a reverse repurchase
agreement, the Portfolio sells securities and agrees to repurchase them at a
mutually agreed upon date and price. Reverse repurchase agreements involve the
risk that the market value of the securities purchased with the proceeds from
the agreement may decline below the price of the securities the Portfolio is
obligated to repurchase. During the year ended November 30, 1996, the Worldwide
High Income Portfolio entered into one reverse repurchase agreement. There were
no reverse repurchase agreements outstanding at November 30, 1996.
FOREIGN CURRENCY TRANSLATION: The books and records of the Trust are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars at published rates on the following basis:
(i) market value of investment securities, other assets and liabilities at
the prevailing rate of exchange at the valuation date.
(ii) purchases and sales of investment securities, income and expenses at the
rate of exchange prevailing on the respective dates of such transactions.
Assets and liabilities denominated in foreign currencies and commitments under
forward foreign currency contracts are translated into U.S. dollars at the mean
of the quoted bid and asked prices of such currencies against the U.S. dollar.
Purchases and sales of portfolio securities are translated at the rate of
exchange prevailing when such securities were acquired or sold. Income and
expenses are translated at rates of exchange prevailing when earned or incurred.
The Trust does not isolate that portion of the results of operations arising
as a result of changes in the foreign exchange rates from the changes in the
market prices of securities held at fiscal year-end. The Trust does not isolate
the effect of changes in foreign exchange rates from the changes in the market
prices of portfolio securities sold during the year.
Realized foreign exchange gain (loss) on other assets and liabilities and
change in unrealized foreign exchange gain (loss) on other assets and
liabilities include realized foreign exchange gains and losses from currency
gains or losses realized between the trade and settlement dates of securities
transactions, forward foreign currency contracts, dividends received, the
difference between the amounts of interest, discount and foreign withholding
taxes recorded on the Trust's books and the U.S. dollar equivalent amounts
actually received or paid and changes in the unrealized foreign exchange gains
and losses relating to the other assets and liabilities arising as a result of
changes in the exchange rate.
---------------------
103
<PAGE> 104
FORWARD FOREIGN CURRENCY CONTRACTS: Certain portfolios may enter into forward
foreign currency contracts ("forward contracts") to attempt to protect
securities and related receivables and payables against changes in future
foreign exchange rates or to enhance return. A forward contract is an agreement
between two parties to buy or sell currency at a set price on a future date. The
market value of the contract will fluctuate with changes in currency exchange
rates. The contract is marked-to-market daily using the forward rate and the
change in market value is recorded by the Portfolio as unrealized gain or loss.
Upon settlement date, the Portfolio records either realized gains or losses when
the contract is closed equal to the difference between the value of the contract
at the time it was opened and the value at the time it was closed. Risks may
arise upon entering into these contracts from the potential inability of
counterparties to meet the terms of their contracts and from unanticipated
movements in the value of a foreign currency relative to the U.S. dollar.
Forward contracts involve elements of risk in excess of the amount reflected in
the Statement of Assets and Liabilities. The Trust bears the risk of an
unfavorable change in the foreign exchange rate underlying the forward contract.
FUTURES CONTRACTS: A futures contract is an agreement between two parties to
buy and sell a financial instrument at a set price on a future date. Upon
entering into such a contract the Trust is required to pledge to the broker an
amount of cash or U.S. government securities equal to the minimum "initial
margin" requirements of the exchange on which the futures contract is traded.
The contract amount reflects the extent of a portfolio's exposure in these
financial instruments. A portfolio's participation in the futures markets
involves certain risks, including imperfect correlation between movements in the
price of futures contracts and movements in the price of the securities hedged
or used for cover. The Trust's activities in the futures contracts are conducted
through regulated exchanges which do not result in counterparty credit risks.
Pursuant to a contract, the portfolios agree to receive from or pay to the
broker an amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as "variation margin" and are
recorded by the portfolios as unrealized appreciation or depreciation. When a
contract is closed, the Portfolios record a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and the
value at the time it was closed.
SECURITIES TRANSACTIONS, INVESTMENT INCOME, EXPENSES, DIVIDENDS AND
DISTRIBUTIONS: As is customary in the mutual fund industry, securities
transactions are accounted for on the first business day following the trade
date. Interest income is accrued daily except when collection is not expected.
Dividend income and distributions to shareholders are recorded on the ex-
dividend date except for certain dividends from foreign securities, which are
recorded as soon as the Trust is informed after the ex-dividend date. The Trust
amortizes premiums and accretes discounts on fixed income securities, as well as
those original issue discounts for which amortization is required for federal
income tax purposes; gains and losses realized upon the sale of such securities
are based on their identified cost. Portfolios which earn foreign income and
capital gains may be subject to foreign withholding taxes at various rates.
Common expenses incurred by the Trust are allocated among the Portfolios based
upon relative net assets. In all other respects, expenses are charged to each
Portfolio as incurred on a specific identification basis.
The Portfolios record dividends and distributions to its shareholders on the
ex-dividend date. The amount of dividends and distributions from net investment
income and net realized capital gains are determined and presented in accordance
with federal income tax regulations, which may differ from generally accepted
accounting principles. These "book/tax" differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature, such amounts are reclassified within the capital accounts based on
their federal tax-basis treatment; temporary differences do not require
reclassification. Dividends and distributions which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains. To the extent
distributions exceed current and accumulated earnings and profits for federal
income tax purposes, they are reported as distributions of paid-in capital. Net
investment income/loss, net realized gain/loss, and net assets were not
affected.
For the year ended November 30, 1996, the reclassification arising from
book/tax differences resulted in increases (decreases) to the components of net
assets as follows:
<TABLE>
<CAPTION>
ACCUMULATED ACCUMULATED
UNDISTRIBUTED NET UNDISTRIBUTED NET PAID-IN
INVESTMENT INCOME/(LOSS) REALIZED GAIN/(LOSS) CAPITAL
----------------------------------------------------
<S> <C> <C> <C>
Cash Management......................................... $ (167) $ 167 $ --
Global Bond*............................................ 1,396,295 (1,425,231) (28,936)
Corporate Bond.......................................... 620 (620) --
Worldwide High Income*.................................. (487,946) 487,946 --
Balanced/Phoenix Investment Counsel..................... 1,029 (1,029) --
Asset Allocation........................................ (800) 800 --
Utility................................................. (230) 230 --
Growth-Income........................................... 29 (29) --
Venture Value........................................... 2,021 (2,021) --
Growth/Phoenix Investment Counsel....................... (510) 510 --
Provident Growth........................................ 23,455 -- (23,455)
Global Equities*........................................ 496,594 (496,594) --
International Diversified Equities*..................... 5,292,994 (5,292,994) --
</TABLE>
* Reclassification is primarily due to differing book/tax treatments for
foreign currency transactions.
- ---------------------
104
<PAGE> 105
3. JOINT REPURCHASE AGREEMENT ACCOUNT: The Cash Management, High-Yield Bond,
SunAmerica Balanced and Aggressive Growth Portfolios, along with other
affiliated registered investment companies, transfer uninvested cash balances
into a single joint account, the daily aggregate balance of which is invested in
one or more repurchase agreements collateralized by U.S. Treasury or federal
agency obligations. As of November 30, 1996, the Cash Management, High-Yield
Bond, SunAmerica Balanced and Aggressive Growth Portfolios had a 6.5%, 4.2%,
1.9% and 3.3%, undivided interest, respectively, which represented $5,615,000,
$3,610,000, $1,605,000 and $2,812,000, respectively, in principal amount in a
repurchase agreement in the joint account. As of such date, the repurchase
agreement in the joint account and the collateral therefore was as follows:
Yamaichi International (America), Inc. Repurchase Agreement, 5.60% dated
11/29/96, in the principal amount of $86,443,000 repurchase price $86,483,340
due 12/02/96 collateralized by $50,000,000 U.S. Treasury Bills due 1/9/97;
$25,910,000 U.S. Treasury Notes 7.50% due 12/31/96 and $11,443,000 U.S. Treasury
Bonds 9.875% due 11/15/15, approximate aggregate value $88,224,302.
4. FEDERAL INCOME TAXES: The Trust intends to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and
distribute all of its taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal tax provision is
required.
The amounts of aggregate unrealized gain (loss) and the cost of investment
securities, including short-term securities, were as follows:
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE UNREALIZED CAPITAL CAPITAL
UNREALIZED UNREALIZED GAIN/(LOSS) COST OF LOSS LOSS
GAIN (LOSS) NET INVESTMENTS CARRYOVER* UTILIZED
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Cash Management**......................... $ 2,919 $ (9,336) $ (6,417) $ 91,021,216 $ 68 $ --
Global Bond............................... 2,130,390 (265,691) 1,864,699 66,254,357 -- 918,531
Corporate Bond............................ 1,230,340 (81,162) 1,149,178 35,688,772 769,710 503,104
High-Yield Bond........................... 5,398,889 (525,843) 4,873,046 109,050,893 8,449,586 560,483
Worldwide High Income..................... 3,169,230 (274,600) 2,894,630 45,989,335 -- --
SunAmerica Balanced....................... 926,973 (111,924) 815,049 9,172,139 -- --
Balanced/Phoenix Investment Counsel....... 5,965,976 (248,548) 5,717,428 69,841,797 -- --
Asset Allocation.......................... 38,016,522 (2,201,911) 35,814,611 301,334,272 -- --
Utility................................... 320,270 (38,666) 281,604 6,142,523 -- --
Growth-Income............................. 67,923,299 (851,198) 67,072,101 257,659,579 -- --
Federated Value........................... 1,261,462 (70,954) 1,190,508 11,125,038 16,874 --
Venture Value............................. 92,728,234 (1,660,947) 91,067,287 425,413,244 -- --
Alliance Growth........................... 66,664,231 (1,151,940) 65,512,291 314,862,223 -- --
Growth/Phoenix Investment Counsel......... 28,862,690 (1,676,399) 27,186,291 159,124,632 -- --
Provident Growth.......................... 46,070,305 (743,008) 45,327,297 116,209,367 -- 3,161,237
Global Equities........................... 35,965,974 (6,218,894) 29,747,080 220,239,627 -- --
International Diversified Equities........ 12,591,474 (6,798,840) 5,792,634 152,434,226 -- 211,683
Aggressive Growth**....................... 3,628,317 (541,226) 3,087,091 31,814,989 248,317 --
</TABLE>
* Expire 2002-2004
** Post 10/31/96 Capital Loss Deferrals: Cash Management $1,541; Aggressive
Growth $453,463
5. MANAGEMENT OF THE TRUST: SunAmerica Asset Management Corp. ("SAAMCo" or the
"Adviser"), an indirect wholly owned subsidiary of the Life Company, serves as
investment adviser for all the portfolios of the Trust. The Trust, on behalf of
each Portfolio, entered into an Investment Advisory and Management Agreement
(the "Agreement") with SAAMCo to handle the Trust's day-to-day affairs. It is
the responsibility of the Adviser and, for certain Portfolios pursuant to
Subadvisory Agreements described below, the subadvisers, to make investment
decisions for the Portfolios and to place the purchase and sale orders for the
Portfolio transactions. Such orders may be directed to any broker including, in
the manner and to the extent permitted by applicable law, affiliates of the
Adviser or a subadviser. The Agreement provides that SAAMCo shall administer the
Trust's business affairs; furnish offices, necessary facilities and equipment;
provide clerical, bookkeeping and administrative services; and permit any of its
officers or employees to serve, without compensation, as trustees or officers of
the Trust, if duly elected to such positions. There is no subadviser for the
Cash Management, High-Yield Bond, SunAmerica Balanced and Aggressive Growth
Portfolios, and SAAMCo, therefore performs all investment advisory services for
these Portfolios. The term "Assets", as used in the following table, means the
average daily net assets of the Portfolios.
---------------------
105
<PAGE> 106
The Trust pays SAAMCo a monthly fee calculated at the following annual
percentages of each Portfolio's assets:
<TABLE>
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ---------------------------------------------------------
<S> <C> <C>
Cash Management $0--$100 million 0.55%
> $100 million 0.50%
> $300 million 0.45%
Global Bond- $0--$ 50 million 0.75%
Asset Allocation > $ 50 million 0.65%
> $150 million 0.60%
> $250 million 0.55%
Corporate Bond $0--$ 50 million 0.70%
> $ 50 million 0.60%
> $150 million 0.55%
> $250 million 0.50%
High-Yield Bond $0--$ 50 million 0.70%
> $ 50 million 0.65%
> $150 million 0.60%
> $250 million 0.55%
Worldwide High > $ 0 1.00%
Income-International
Diversified Equities
SunAmerica Balanced- $0--$ 50 million 0.70%
Balanced/Phoenix > $ 50 million 0.65%
Investment Counsel- > $150 million 0.60%
Growth-Income- > $300 million 0.55%
Alliance Growth- > $500 million 0.50%
Growth/Phoenix
Investment Counsel
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ---------------------------------------------------------
<S> <C> <C>
Utility-Federated Value $0--$150 million 0.70%
> $150 million 0.60%
> $500 million 0.50%
Venture Value $0--$100 million 0.80%
> $100 million 0.75%
> $500 million 0.70%
Provident Growth $0--$ 50 million 0.85%
> $ 50 million 0.80%
> $150 million 0.70%
> $250 million 0.65%
> $350 million 0.60%
Global Equities $0--$ 50 million 0.90%
> $ 50 million 0.80%
> $150 million 0.70%
> $300 million 0.65%
Aggressive Growth $0--$100 million 0.75%
> $100 million 0.675%
> $250 million 0.625%
> $500 million 0.60%
</TABLE>
The organizations described below act as subadvisers to the Trust and certain
of its Portfolios pursuant to Subadvisory Agreements with SAAMCo. Under the
Subadvisory Agreements, the subadvisers manage the investment and reinvestment
of the assets of the respective Portfolios for which they are responsible. Each
of the subadvisers is independent of SAAMCo and discharges its responsibilities
subject to the policies of the Trustees and the oversight and supervision of
SAAMCo, which pays the subadvisers' fees.
Goldman Sachs Asset Management International, an affiliate of Goldman Sachs &
Co., serves as subadviser for the Global Bond Portfolio; Goldman Sachs Asset
Management, a separate operating division of Goldman Sachs & Co., serves as
subadviser for the Asset Allocation Portfolio; Federated Investment Counseling
serves as a subadviser for the Corporate Bond, Federated Value and Utility
Portfolios; Morgan Stanley Asset Management Inc., a wholly owned subsidiary of
Morgan Stanley Group, Inc., serves as subadviser for the International
Diversified Equities and Worldwide High Income Portfolios; Phoenix Investment
Counsel, Inc. serves as subadviser for the Growth/Phoenix Investment Counsel and
Balanced/Phoenix Investment Counsel Portfolios; Alliance Capital Management L.P.
serves as a subadviser for the Global Equities, Alliance Growth and
Growth-Income Portfolios; Davis Selected Advisers, L.P. serves as subadviser for
the Venture Value Portfolio; and Provident Investment Counsel, Inc. serves as
subadviser for the Provident Growth Portfolio. Effective June 3, 1996 Goldman
Sachs Asset Management resigned their role as subadviser and Federated
Investment Counseling assumed the role as subadviser for the Corporate Bond
Portfolio.
- ---------------------
106
<PAGE> 107
The portion of the investment advisory fees received by SAAMCo which are paid
to subadvisers are as follows:
<TABLE>
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ---------------------------------------------------------
<S> <C> <C>
Global Bond- $0--$ 50 million 0.40%
Asset Allocation > $ 50 million 0.30%
> $150 million 0.25%
> $250 million 0.20%
Corporate Bond $0--$ 25 million 0.30%
> $ 25 million 0.25%
> $100 million 0.20%
> $150 million 0.15%
Worldwide High Income- $0--$350 million 0.65%
International Diversified > $350 million 0.60%
Equities-
Balanced/Phoenix $0--$ 50 million 0.35%
Investment Counsel- > $ 50 million 0.30%
Growth-Income- > $150 million 0.25%
Alliance Growth- > $300 million 0.20%
Growth/Phoenix > $500 million 0.15%
Investment Counsel-
Utility-Federated Value $0--$ 20 million 0.55%
> $ 20 million 0.35%
> $ 50 million 0.25%
> $150 million 0.20%
> $500 million 0.15%
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ---------------------------------------------------------
<S> <C> <C>
Venture Value $0--$100 million 0.45%
> $100 million 0.40%
> $500 million 0.35%
Provident Growth $0--$ 50 million 0.50%
> $ 50 million 0.45%
> $150 million 0.35%
> $250 million 0.30%
> $350 million 0.25%
Global Equities $0--$ 50 million 0.50%
> $ 50 million 0.40%
> $150 million 0.30%
> $300 million 0.25%
</TABLE>
For certain Portfolios, the Adviser has voluntarily agreed to waive fees or
reimburse expenses, if necessary, to keep annual operating expenses at or below
the following percentages of each of the following Portfolio's average net
assets: SunAmerica Balanced Portfolio -- 1.00%, Utility Portfolio -- 1.05%,
Federated Value Portfolio -- 1.05% and Aggressive Growth Portfolio -- 1.05%. The
Adviser also may voluntarily waive or reimburse additional amounts to increase
the investment return to a Portfolio's investors. The Adviser may terminate all
such waivers and/or reimbursements at any time. Further, effective June 3, 1996,
any waivers or reimbursements made by the Adviser with respect to a Portfolio
are subject to recoupment from that Portfolio within the following two years,
provided that the Portfolio is able to effect such payment to the Adviser and
remain in compliance with the foregoing expense limitations.
The impact of such expense reimbursements is reflected in the Statement of
Operations under the caption "expenses reimbursed by the investment adviser."
6. ORGANIZATIONAL EXPENSES: Costs incurred by the Adviser in connection with
the organization and registration of the Trust amounted to $204,704.
Organizational expenses are amortized on a straight line basis by each
applicable Portfolio of the Trust over the period of benefit not to exceed 60
months from the date the respective Portfolio commenced operations.
7. PURCHASES AND SALES OF SECURITIES: Information with respect to purchases and
sales of long-term securities for the year ended November 30, 1996, was as
follows:
<TABLE>
<CAPTION>
CASH GLOBAL CORPORATE HIGH-YIELD WORLDWIDE SUNAMERICA
MANAGEMENT BOND BOND BOND HIGH INCOME BALANCED
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Purchases of portfolio
securities............... $ -- $119,936,743 $116,246,365 $127,757,620 $77,341,010 $9,249,594
Sales of portfolio
securities............... -- 118,839,853 107,922,252 96,920,503 58,496,629 1,691,653
U.S. government securities
included above were as
follows:
Purchases of U.S.
government securities.... -- 31,143,070 83,683,505 -- -- 1,014,326
Sales of U.S. government
securities............... -- 22,828,289 90,634,049 -- -- --
</TABLE>
---------------------
107
<PAGE> 108
<TABLE>
<CAPTION>
BALANCED/PHOENIX
INVESTMENT ASSET GROWTH- FEDERATED VENTURE
COUNSEL ALLOCATION UTILITY INCOME VALUE VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Purchases of portfolio
securities............... $115,506,321 $560,709,314 $6,568,389 $259,614,657 $11,939,399 $307,784,901
Sales of portfolio
securities............... 84,745,767 473,924,819 799,824 180,419,109 1,748,311 61,080,932
U.S. government securities
included above were as
follows:
Purchases of U.S.
government securities.... 42,005,493 362,083,040 -- -- -- --
Sales of U.S. government
securities............... 31,216,216 352,430,512 -- -- -- --
</TABLE>
<TABLE>
<CAPTION>
GROWTH/PHOENIX INTERNATIONAL
ALLIANCE INVESTMENT PROVIDENT GLOBAL DIVERSIFIED AGGRESSIVE
GROWTH COUNSEL GROWTH EQUITIES EQUITIES GROWTH
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Purchases of portfolio
securities............... $438,376,297 $234,109,325 $96,172,952 $184,810,018 $146,866,299 $36,231,547
Sales of portfolio
securities............... 286,378,463 883,193,972 78,049,379 136,312,942 50,986,307 6,526,778
U.S. government securities
included above were as
follows:
Purchases of U.S.
government securities.... -- -- -- -- -- --
Sales of U.S. government
securities............... -- -- -- -- -- --
</TABLE>
8. TRANSACTIONS WITH AFFILIATES: The following Portfolios incurred brokerage
commissions with an affiliated broker:
<TABLE>
<CAPTION>
GOLDMAN
SACHS & CO.
-----------
<S> <C>
Asset Allocation Portfolio................................................. $23,078
</TABLE>
9. COMMITMENTS AND CONTINGENCIES: The High-Yield Bond Portfolio has established
an uncommitted line of credit with State Street Bank and Trust Company with
interest payable at the Federal Funds rate plus 125 basis points. Borrowings
under the line of credit will commence when the Fund's cash shortfall exceeds
$100,000. During the year ended November 30, 1996, the High-Yield Bond Portfolio
had borrowings outstanding for 13 days under the line of credit and incurred
$7,414 in interest charges related to these borrowings. The High-Yield Bond
Portfolio's average amount of debt under the line of credit for the year ended
November 30, 1996 was $102,242 at a weighted average interest of 6.96%. The
High-Yield Bond Portfolio did not have any outstanding borrowing at November 30,
1996.
- ---------------------
108
<PAGE> 109
- ---------------------
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS*
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIO OF
NET NET
REALIZED RATIO OF INVESTMENT
NET & TOTAL DIVIDENDS DIVIDENDS NET NET EXPENSES INCOME
ASSET NET UNREALIZED FROM DECLARED FROM NET ASSET ASSETS TO TO
VALUE INVEST- GAIN INVEST- FROM NET REALIZED VALUE END OF AVERAGE AVERAGE
PERIOD BEGINNING MENT (LOSS) ON MENT INVESTMENT GAIN ON END OF TOTAL PERIOD NET NET
ENDED OF PERIOD INCOME** INVESTMENTS OPERATIONS INCOME INVESTMENTS PERIOD RETURN*** (000'S) ASSETS ASSETS
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Cash Management Portfolio
2/9/93-
11/30/93 $ 10.00 $ 0.19 $ 0.01 $ 0.20 $ -- $ -- $ 10.20 2.00% $ 24,603 0.71%+++ 2.53%+++
11/30/94 10.20 0.38 (0.02) 0.36 (0.09) -- 10.47 3.51 89,098 0.70++ 3.73++
11/30/95 10.47 0.56 0.01 0.57 (0.34) -- 10.70 5.59 90,731 0.67 5.32
11/30/96 10.70 0.53 (0.02) 0.51 (0.45) -- 10.76 4.92 91,247 0.62 4.90
Global Bond Portfolio
7/1/93-
11/30/93 10.00 0.13 0.17 0.30 -- -- 10.30 3.00 25,010 1.35+++ 3.56+++
11/30/94 10.30 0.53 (0.86) (0.33) (0.09) (0.05) 9.83 (3.18) 44,543 1.06 5.29
11/30/95 9.83 0.60 0.97 1.57 (0.38) -- 11.02 16.40 59,759 0.95 5.89
11/30/96 11.02 0.59 0.54 1.13 (0.75) -- 11.40 10.94 68,221 0.89 5.44
Corporate Bond Portfolio
7/1/93-
11/30/93 10.00 0.14 0.05 0.19 -- -- 10.19 1.90 11,667 0.94+++ 3.92+++
11/30/94 10.19 0.52 (0.87) (0.35) (0.05) (0.04) 9.75 (3.41) 15,869 0.94++ 5.21++
11/30/95 9.75 0.60 1.00 1.60 (0.53) -- 10.82 17.01 29,475 0.96++ 5.93++
11/30/96 10.82 0.65 0.03 0.68 (0.41) -- 11.09 6.51 37,207 0.97 6.11
High-Yield Bond Portfolio
2/9/93-
11/30/93 10.00 0.76 0.36 1.12 -- -- 11.12 11.20 41,851 0.94+++ 9.43+++
11/30/94 11.12 1.20 (1.65) (0.45) (0.29) (0.06) 10.32 (4.26) 55,803 0.92++ 11.07++
11/30/95 10.32 1.11 0.12 1.23 (1.02) -- 10.53 12.64 82,174 0.80 10.80
11/30/96 10.53 0.98 0.48 1.46 (0.95) -- 11.04 14.86 113,229 0.77 9.41
Worldwide High Income Portfolio
10/28/94-
11/30/94 10.00 0.04 (0.09) (0.05) -- -- 9.95 (0.50) 10,478 1.60+++ 4.48+++
11/30/95 9.95 1.10 0.47 1.57 (0.10) -- 11.42 16.02 21,515 1.30 10.46
11/30/96# 11.42 1.25 1.60 2.85 (0.87) (0.05) 13.35 26.87 49,204 1.18 10.45
SunAmerica Balanced Portfolio
6/3/96-
11/30/96 10.00 0.10 1.03 1.13 -- -- 11.13 11.30 10,224 1.00+++ 1.92+++
<CAPTION>
AVERAGE
COMMISSION
PERIOD PORTFOLIO PER
ENDED TURNOVER SHARE@
- ----------------------------------
<S> <C> <C>
Cash Management Portfolio
2/9/93-
11/30/93 --% $ NA
11/30/94 -- NA
11/30/95 -- NA
11/30/96 -- NA
Global Bond Portfolio
7/1/93-
11/30/93 84 NA
11/30/94 347 NA
11/30/95 339 NA
11/30/96 223 NA
Corporate Bond Portfolio
7/1/93-
11/30/93 208 NA
11/30/94 419 NA
11/30/95 412 NA
11/30/96 338 NA
High-Yield Bond Portfolio
2/9/93-
11/30/93 229 NA
11/30/94 225 NA
11/30/95 174 NA
11/30/96 107 NA
Worldwide High Income Portfolio
10/28/94-
11/30/94 2 NA
11/30/95 176 NA
11/30/96# 177 NA
SunAmerica Balanced Portfolio
6/3/96-
11/30/96 40 .0600
</TABLE>
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of Anchor
National Life Insurance Company and First SunAmerica Life Insurance
Company. If such expenses had been included, total return would have
been lower for each period presented.
@ The average commission per share is derived by taking the agency
commissions paid on equity securities trades and dividing by the number of
shares purchased or sold.
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995 and 1996, the
investment adviser waived a portion of or all fees and assumed a portion
of or all expenses for the portfolios. If all fees and expenses had been
incurred by the portfolios, the ratio of expenses to average net assets
and the ratio of net investment income to average net assets would have
been as follows:
<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME
------------------------------- ----------------------------------
1993 1994 1995 1996 1993 1994 1995 1996
------------------------------- ----------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Cash Management Portfolio.............................. 1.10% 0.78% 0.67% 0.62% 2.14% 3.65% 5.32% 4.90%
Global Bond Portfolio.................................. 1.81 1.06 0.95 0.89 3.10 5.29 5.89 5.44
Corporate Bond Portfolio............................... 1.81 1.09 0.97 0.97 3.05 5.06 5.92 6.11
High-Yield Bond Portfolio.............................. 1.29 0.93 0.80 0.77 9.08 11.06 10.80 9.41
Worldwide High Income Portfolio........................ -- 2.26 1.30 1.18 -- 3.82 10.46 10.45
SunAmerica Balanced Portfolio.......................... -- -- -- 1.43 -- -- -- 1.49
</TABLE>
<TABLE>
<CAPTION>
DEBT AVERAGE AVERAGE AVERAGE
YEAR OUTSTANDING DEBT SHARES DEBT
ENDED AT YEAR END OUTSTANDING OUTSTANDING PER SHARE
--------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Worldwide High Income Portfolio........................ 11/30/96 -- $ 120,656 3,085,308 $0.0391
</TABLE>
See Notes to Financial Statements
---------------------
109
<PAGE> 110
- ---------------------
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS* -- (CONTINUED)
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIO OF
NET NET
REALIZED RATIO OF INVESTMENT
NET & TOTAL DIVIDENDS DIVIDENDS NET NET EXPENSES INCOME
ASSET NET UNREALIZED FROM DECLARED FROM NET ASSET ASSETS TO TO
VALUE INVEST- GAIN INVEST- FROM NET REALIZED VALUE END OF AVERAGE AVERAGE
PERIOD BEGINNING MENT (LOSS) ON MENT INVESTMENT GAIN ON END OF TOTAL PERIOD NET NET
ENDED OF PERIOD INCOME** INVESTMENTS OPERATIONS INCOME INVESTMENTS PERIOD RETURN*** (000'S) ASSETS ASSETS
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Balanced/Phoenix Investment Counsel Portfolio
10/28/94-
11/30/94 $ 10.00 $ 0.04 $ (0.08) $ (0.04) $ -- $ -- $ 9.96 (0.40)% $ 1,516 1.00%+++ 4.25%+++
11/30/95 9.96 0.34 2.23 2.57 (0.05) -- 12.48 25.89 32,429 0.98++ 3.08++
11/30/96 12.48 0.34 1.31 1.65 (0.19) (0.31) 13.63 13.75 70,021 0.84 2.74
Asset Allocation Portfolio
7/1/93-
11/30/93 10.00 0.08 0.28 0.36 -- -- 10.36 3.60 35,590 0.99+++ 2.33+++
11/30/94 10.36 0.29 (0.25) 0.04 (0.05) (0.03) 10.32 0.30 106,856 0.94++ 2.71++
11/30/95 10.32 0.42 2.24 2.66 (0.20) (0.04) 12.74 26.10 199,836 0.81 3.62
11/30/96 12.74 0.48 2.00 2.48 (0.31) (0.39) 14.52 20.27 316,388 0.74 3.66
Utility Portfolio
6/3/96-
11/30/96 10.00 0.24 0.51 0.75 -- -- 10.75 7.50 6,299 1.05+++ 4.41+++
Growth-Income Portfolio
2/9/93-
11/30/93 10.00 0.12 0.49 0.61 -- -- 10.61 6.10 45,080 0.82+++ 1.59+++
11/30/94 10.61 0.13 (0.36) (0.23) (0.04) (0.01) 10.33 (2.20) 84,899 0.81++ 1.26++
11/30/95 10.33 0.17 3.31 3.48 (0.10) -- 13.71 33.89 171,281 0.77 1.42
11/30/96 13.71 0.18 3.48 3.66 (0.12) (0.43) 16.82 27.41 325,463 0.72 1.21
Federated Value Portfolio
6/3/96-
11/30/96 10.00 0.07 1.01 1.08 -- -- 11.08 10.80 12,460 1.05+++ 1.26+++
Venture Value Portfolio
10/28/94-
11/30/94 10.00 0.03 (0.25) (0.22) -- -- 9.78 (2.20) 4,449 1.10+++ 3.93+++
11/30/95 9.78 0.17 3.55 3.72 (0.03) -- 13.47 38.17 154,908 1.00++ 1.43++
11/30/96 13.47 0.18 3.46 3.64 (0.09) (0.12) 16.90 27.44 516,413 0.85 1.21
<CAPTION>
AVERAGE
COMMISSION
PERIOD PORTFOLIO PER
ENDED TURNOVER SHARE@
- -------------------------------
<S> <C> <C>
Balanced/Phoenix Investment Counsel Portfolio
10/28/94-
11/30/94 10% $ NA
11/30/95 153 NA
11/30/96 194 .0589
Asset Allocation Portfolio
7/1/93-
11/30/93 71 NA
11/30/94 152 NA
11/30/95 207 NA
11/30/96 200 .0587
Utility Portfolio
6/3/96-
11/30/96 24 .0439
Growth-Income Portfolio
2/9/93-
11/30/93 27 NA
11/30/94 59 NA
11/30/95 59 NA
11/30/96 82 .0597
Federated Value Portfolio
6/3/96-
11/30/96 30 .0520
Venture Value Portfolio
10/28/94-
11/30/94 -- NA
11/30/95 18 NA
11/30/96 22 .0598
</TABLE>
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of Anchor
National Life Insurance Company and First SunAmerica Life Insurance
Company. If such expenses had been included, total return would have
been lower for each period presented.
@ The average commission per share is derived by taking the agency
commissions paid on equity securities trades and dividing by the number of
shares purchased or sold.
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995 and 1996, the
investment adviser waived a portion of or all fees and assumed a portion
of or all expenses for the portfolios. If all fees and expenses had been
incurred by the portfolios, the ratio of expenses to average net assets
and the ratio of net investment income to average net assets would have
been as follows:
<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME (LOSS)
------------------------------- -----------------------------------
1993 1994 1995 1996 1993 1994 1995 1996
------------------------------- -----------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balanced/Phoenix Investment Counsel Portfolio......... --% 6.82% 1.11% 0.84% --% (1.57)% 2.95% 2.74%
Asset Allocation Portfolio............................ 1.67 0.94 0.81 0.74 1.65 2.71 3.62 3.66
Utility Portfolio..................................... -- -- -- 1.93 -- -- -- 3.53
Growth-Income Portfolio............................... 1.40 0.89 0.77 0.72 1.01 1.18 1.42 1.21
Federated Value Portfolio............................. -- -- -- 1.57 -- -- -- 0.74
Venture Value Portfolio............................... -- 3.89 1.02 0.85 -- 1.14 1.41 1.21
</TABLE>
See Notes to Financial Statements
- ---------------------
110
<PAGE> 111
- ---------------------
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS* -- (CONTINUED)
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIO OF
NET NET
REALIZED RATIO OF INVESTMENT
NET NET & TOTAL DIVIDENDS DIVIDENDS NET NET EXPENSES INCOME
ASSET INVEST- UNREALIZED FROM DECLARED FROM NET ASSET ASSETS TO TO
VALUE MENT GAIN INVEST- FROM NET REALIZED VALUE END OF AVERAGE AVERAGE
PERIOD BEGINNING INCOME (LOSS) ON MENT INVESTMENT GAIN ON END OF TOTAL PERIOD NET NET
ENDED OF PERIOD (LOSS)** INVESTMENTS OPERATIONS INCOME INVESTMENTS PERIOD RETURN*** (000'S) ASSETS ASSETS
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Alliance Growth Portfolio
2/9/93-
11/30/93 $ 10.00 $ 0.05 $ 0.87 $ 0.92 $ -- $ -- $ 10.92 9.20% $ 23,256 0.82%+++ 0.61%+++
11/30/94 10.92 0.04 (0.14) (0.10) (0.01) (0.17) 10.64 (0.93) 53,213 0.82++ 0.37++
11/30/95 10.64 0.07 5.08 5.15 (0.03) (0.13) 15.63 48.91 167,870 0.79 0.51
11/30/96 15.63 0.08 4.07 4.15 (0.04) (1.01) 18.73 28.05 381,367 0.71 0.51
Growth/Phoenix Investment Counsel Portfolio
2/9/93-
11/30/93 10.00 0.17 0.61 0.78 -- -- 10.78 7.80 65,032 0.82+++ 2.20+++
11/30/94 10.78 0.16 (0.87) (0.71) (0.06) -- 10.01 (6.64) 104,194 0.81++ 1.52++
11/30/95 10.01 0.12 3.14 3.26 (0.13) -- 13.14 32.92 149,910 0.76 1.01
11/30/96 13.14 0.11 2.16 2.27 (0.11) (0.91) 14.39 18.40 186,368 0.74 0.82
Provident Growth Portfolio
2/9/93-
11/30/93 10.00 0.02 0.02 0.04 -- -- 10.04 0.40 42,911 0.97+++ 0.32+++
11/30/94 10.04 0.03 (0.01) 0.02 (0.01) -- 10.05 0.19 75,342 0.96++ 0.31++
11/30/95 10.05 (0.01) 3.09 3.08 (0.03) -- 13.10 30.66 115,276 0.93 (0.05)
11/30/96 13.10 -- 2.61 2.61 -- -- 15.71 19.92 160,073 0.90 (0.02)
Global Equities Portfolio
2/9/93-
11/30/93 10.00 0.03 0.96 0.99 -- -- 10.99 9.90 43,737 1.50+++ 0.38+++
11/30/94 10.99 0.05 0.71 0.76 (0.01) (0.07) 11.67 6.87 136,758 1.28 0.42
11/30/95 11.67 0.12 1.64 1.76 (0.08) (0.29) 13.06 15.58 165,752 1.14 1.02
11/30/96 13.06 0.14 2.19 2.33 (0.14) (0.33) 14.92 18.21 246,482 1.03 1.04
International Diversified Equities Portfolio
10/28/94-
11/30/94 10.00 0.01 (0.23) (0.22) -- -- 9.78 (2.20) 12,438 1.70+++ 1.60+++
11/30/95 9.78 0.07 0.38 0.45 (0.08) -- 10.15 4.63 48,961 1.70++ 0.76++
11/30/96 10.15 0.05 1.43 1.48 (0.26) -- 11.37 14.85 157,008 1.59 0.47
Aggressive Growth Portfolio
6/3/96-
11/30/96 10.00 0.02 0.34 0.36 -- -- 10.36 3.60 35,124 1.05+++ 0.46+++
<CAPTION>
AVERAGE
COMMISSION
PERIOD PORTFOLIO PER
ENDED TURNOVER SHARE@
- ----------------------------------
<S> <C> <C>
Alliance Growth Portfolio
2/9/93-
11/30/93 73% $ NA
11/30/94 146 NA
11/30/95 138 NA
11/30/96 121 .0649
Growth/Phoenix Investment Counsel Portfolio
2/9/93-
11/30/93 165 NA
11/30/94 211 NA
11/30/95 229 NA
11/30/96 164 .0534
Provident Growth Portfolio
2/9/93-
11/30/93 40 NA
11/30/94 54 NA
11/30/95 52 NA
11/30/96 63 .0443
Global Equities Portfolio
2/9/93-
11/30/93 58 NA
11/30/94 67 NA
11/30/95 106 NA
11/30/96 70 .0256
International Diversified Equities Portfolio
10/28/94-
11/30/94 -- NA
11/30/95 52 NA
11/30/96 53 .0023
Aggressive Growth Portfolio
6/3/96-
11/30/96 47 .0600
</TABLE>
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of Anchor
National Life Insurance Company and First SunAmerica Life Insurance
Company. If such expenses had been included, total return would have
been lower for each period presented.
@ The average commission per share is derived by taking the agency
commissions paid on equity securities trades and dividing by the number of
shares purchased or sold.
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995 and 1996, the
investment adviser waived a portion of or all fees and assumed a portion
of or all expenses for the portfolios. If all fees and expenses had been
incurred by the portfolios, the ratio of expenses to average net assets
and the ratio of net investment income to average net assets would have
been as follows:
<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME (LOSS)
------------------------------- -----------------------------------
1993 1994 1995 1996 1993 1994 1995 1996
------------------------------- -----------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Alliance Growth Portfolio............................. 1.56% 0.96% 0.79% 0.71% (0.13)% 0.23% 0.51% 0.51%
Growth/Phoenix Investment Counsel Portfolio........... 1.28 0.87 0.76 0.74 1.74 1.46 1.01 0.82
Provident Growth Portfolio............................ 1.46 1.05 0.93 0.90 (0.17) 0.22 (0.05) (0.02)
Global Equities Portfolio............................. 2.52 1.28 1.14 1.03 (0.64) 0.42 1.02 1.04
International Diversified Equities Portfolio.......... -- 3.50 2.09 1.59 -- (0.20) 0.37 0.47
Aggressive Growth Portfolio........................... -- -- -- 1.09 -- -- -- 0.42
</TABLE>
See Notes to Financial Statements
---------------------
111
<PAGE> 112
- ---------------------
SUNAMERICA SERIES TRUST
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of SunAmerica Series Trust
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolios, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Cash Management Portfolio, Global
Bond Portfolio, Corporate Bond Portfolio (formerly Fixed Income Portfolio),
High-Yield Bond Portfolio, Worldwide High Income Portfolio, SunAmerica Balanced
Portfolio, Balanced/Phoenix Investment Counsel Portfolio, Asset Allocation
Portfolio, Utility Portfolio, Growth-Income Portfolio, Federated Value
Portfolio, Venture Value Portfolio, Alliance Growth Portfolio, Growth/Phoenix
Investment Counsel Portfolio, Provident Growth Portfolio, Global Equities
Portfolio, International Diversified Equities Portfolio and Aggressive Growth
Portfolio (constituting SunAmerica Series Trust, hereafter referred to as the
"Fund") at November 30, 1996, and the results of each of their operations, the
changes in each of their net assets and the financial highlights, for each of
the periods indicated, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at November 30, 1996 by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmations from brokers were not received, provide a reasonable basis
for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York
January 10, 1997
- ---------------------
112
<PAGE> 113
- ---------------------
SUNAMERICA SERIES TRUST
SHAREHOLDER INFORMATION (UNAUDITED)
SUPPLEMENTAL PROXY INFORMATION: A Special Meeting of the Shareholders of the
SunAmerica Series Trust Fixed Income Portfolio was held on June 3, 1996. The
following is a summary of each proposal presented and the total number of shares
voted:
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
PROPOSAL FAVOR OF AGAINST ABSTAINED
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Proposal to approve, with respect to the Portfolio,
the continuation of the Investment Advisory and
Management Agreement between SunAmerica Asset
Management Corp. ("SunAmerica") and the Trust on
behalf of the Portfolio.............................. 2,855,767 47,706 155,340
2. Proposal to approve new Subadvisory Agreement between
SunAmerica and Federated Investment Counseling
("Federated") pursuant to which Federated will serve as
subadviser with respect to the assets of the
Portfolio. .......................................... 2,807,264 82,719 168,849
</TABLE>
---------------------
113
<PAGE> 114
- ---------------------
COMPARISONS: PORTFOLIOS VS. INDEXES
The following graphs compare the performance of a $10,000
investment in the SunAmerica Series Trust Portfolios (with the
exception of Cash Management) to a $10,000 investment in a
securities index. Following each graph is a discussion of
portfolio performance and factors affecting it over the last
year.
THESE GRAPHS AND TABLES SHOW THE PERFORMANCE OF THE PORTFOLIOS AT
THE SUNAMERICA SERIES TRUST LEVEL AND INCLUDE ALL TRUST EXPENSES
BUT NO INSURANCE COMPANY EXPENSES ASSOCIATED WITH THE VARIABLE
ANNUITY AND NO CONTINGENT DEFERRED SALES CHARGE. ALL DIVIDENDS
ARE ASSUMED TO BE REINVESTED. NO EXPENSES ARE DEDUCTED FROM THE
PERFORMANCE OF THE INDEXES.
CASH MANAGEMENT
SunAmerica Asset Management Corp.
The Cash Management Portfolio performed well during 1996. The
money manager's strategy was to keep the average maturity fairly
close to the Donaghue average, which moved between approximately
45 and 56 days. For the 12-month period ended November 30, 1996,
the Cash Management Portfolio returned 4.92%, versus the Lipper
Analytical composite return of 4.99%.
SunAmerica Asset Management believes that the economy is poised
to achieve growth of approximately 2.5% in early 1997, and will
continue to search for the best relative value securities and
structure the portfolio to be flexible for the potentially
volatile markets in 1997.
- ---------------------
114
<PAGE> 115
GOLDMAN SACHS ASSET MANAGEMENT INTERNATIONAL
Global Bond Portfolio
<TABLE>
<CAPTION>
Global Bond JP Morgan Global
Portfolio Gov't Bond(1)
----------- ----------------
<S> <C> <C>
7/1/93....... 10,000 10,000
8/31/93....... 10,200 10,296
11/30/93....... 10,300 10,324
2/28/94....... 10,190 10,413
5/31/94....... 9,942 10,270
8/31/94....... 9,930 10,463
11/30/94....... 9,973 10,746
2/28/95....... 10,297 11,086
5/31/95....... 10,965 11,802
8/31/95....... 11,102 12,007
11/30/95....... 11,608 12,548
2/28/96....... 11,734 12,630
5/31/96....... 11,896 12,772
8/31/96....... 12,156 13,069
11/30/96....... 12,879 13,809
</TABLE>
(1)The JP Morgan Global Government Bond Portfolio Index tracks the
performance of bonds throughout the world, including issues from
Europe, Australia, the Far East and the United States.
-----------------------------------------------
GLOBAL BOND PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/96
-----------------------------------------------
1-year 10.94%
Since Inception (7/1/93) 7.68%
-----------------------------------------------
For the 12-month period ended November 30, 1996, the Global Bond
Portfolio returned 10.94%, versus 10.05% for the J.P. Morgan
Global Government Bond Index. This favorable performance, relative
to its benchmark, was due primarily to the portfolio's
overweighting in European bonds and moderate underweighting in
U.S. Treasuries.
Though the portfolio was typically fully hedged in U.S. dollars,
the manager occasionally employed currency strategies during the
period. These included the initiation of a long position in the
U.S. dollar against the yen and European currencies, which helped
the portfolio's performance when the dollar strengthened during
the period.
As of November 30, 1996, U.S. Treasuries were the portfolio's sole
allocation to the dollar bloc countries. However, during the
period, the manager intermittently held positions in Canadian and
Australian bonds. The portfolio's duration of 4.3 years was
approximately a half year lower than that of the benchmark. The
duration difference was primarily due to the portfolio's cash
equivalent position and its underweighting in Japan. During most
of the period, the portfolio was underweighted in U.S. Treasuries
relative to the benchmark, which worked to its advantage when the
U.S. market was impacted by rising interest rates. The manager
increased the portfolio's allocation in the higher yielding
European markets (Italy, Spain, and Sweden), then trimmed its
exposure after these markets became less favorably valued.
Past performance is no guarantee of future results.
---------------------
115
<PAGE> 116
FEDERATED INVESTORS
Corporate Bond Portfolio
<TABLE>
<CAPTION>
Lehman Brothers Lipper
Corporate Lehman Brothers Corporate Corporate
Bond Portfolio Aggregate(1) Bond(2) BBB Rated(3)
-------------- --------------- --------------- ------------
<S> <C> <C> <C> <C>
7/1/93........ 10,000 10,000 10,000 10,000
8/31/93........ 10,200 10,231 10,323 10,341
11/30/93........ 10,190 10,209 10,271 10,351
2/28/94........ 10,180 10,222 10,284 10,368
5/31/94........ 9,843 9,888 9,836 9,906
8/31/94........ 10,014 10,075 10,070 10,070
11/30/94........ 9,843 9,896 9,845 9,868
2/28/95........ 10,337 10,404 10,429 10,324
5/31/95........ 10,942 11,024 11,196 11,064
8/31/95........ 11,112 11,215 11,428 11,261
11/30/95........ 11,517 11,643 11,937 11,740
2/28/96........ 11,570 11,677 11,922 11,729
5/31/96........ 11,404 11,509 11,701 11,526
8/31/96........ 11,559 11,673 11,859 11,669
11/30/96....... 12,266 12,347 12,707 12,445
</TABLE>
(1)The Lehman Brothers Aggregate Index combines several Lehman
Brothers fixed-income indexes to give a broad view of the bond
market -- 70% reflects the Government/Corporate Bond Index, 29%
reflects the Mortgage-Backed Securities Index and 1% reflects the
Asset-Backed Securities Index. The Index includes fixed rate debt
issues rated investment grade or higher by Moody's Investors
Service, Standard & Poor's Corporation, or Fitch Investors Service,
in that order. All issues have at least one year to maturity and an
outstanding par value of at least $100 million.
(2)The Lehman Brothers Corporate Bond Index includes all publicly
issued, fixed rate, nonconvertible investment grade,
dollar-denominated, SEC-registered corporate debt.
(3)The Lipper Corporate BBB Rated Index is an average of variable
annuity accounts that include at least 65% of assets in corporate
and government debt issues in the top four grades.
-----------------------------------------------
CORPORATE BOND PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/96
-----------------------------------------------
1-year 6.51%
Since Inception (7/1/93) 6.16%
-----------------------------------------------
Consistent with bond market returns and volatility, the Corporate
Bond Portfolio produced a return of 6.51% for the 12-month period
ended November 30, 1996. This compares favorably to the return of
6.45% for the Lehman Brothers Corporate Bond Index, 6.05% for the
Lehman Brothers Aggregate Index, and 6.01% for the Lipper Corporate
Debt Funds BBB Rated Index.
This portfolio was previously named the Fixed Income Portfolio from
its inception date July 1, 1993 to June 2, 1996, and was managed by
Goldman Sachs Asset Management. On June 3, 1996, Federated
Investors assumed responsibility for managing the portfolio in
conjunction with a name change to the Corporate Bond Portfolio. The
investment strategies were modified to reflect a corporate bond,
total return approach. From a quality perspective, the portfolio
maintains its structure as a core investment grade portfolio, but
also provides for purchase of below investment-grade securities for
up to 35% of total portfolio assets. The portfolio is now in a
position to access relative value securities across various fixed
income asset classes. Due to the portfolio's name and policy
change, the manager has selected two additional performance
benchmarks for comparison purposes: the Lehman Brothers Corporate
Bond and the Lipper Corporate Debt Funds BBB Rated Index.
Since the investment strategy change last June, two distinct
strategies have been employed by the manager. The first relates to
the portfolio's overall quality position, and the second relates to
its interest rate exposure or duration decision. Throughout the
most recent period, the portfolio maintained approximately 20% of
total assets in high-yield corporate securities. This minority, but
still significant position, generated not only an above-average
income distribution for its shareholders, but also served to
cushion the falling price effect of rising rates during summer
months.
Since August, the manager increased the portfolio's duration
position, in light of higher interest rates yet no visible signs of
inflation hikes. As a result, the portfolio participated in
significant price appreciation, as interest rates then fell hard
and fast during September, October, and November of 1996.
Past performance is no guarantee of future results.
- ---------------------
116
<PAGE> 117
SUNAMERICA ASSET MANAGEMENT CORP.
High-Yield Bond Portfolio
<TABLE>
<CAPTION>
High-Yield Merrill Lynch
Bond Portfolio High-Yield Master(1)
-------------- --------------------
<S> <C> <C>
2/9/93..... 10,000 10,000
2/28/93.... 10,140 10,189
5/31/93.... 10,490 10,581
8/31/93.... 10,810 10,999
11/30/93... 11,120 11,318
2/28/94.... 11,540 11,626
5/31/94.... 10,884 11,250
8/31/94.... 10,760 11,449
11/30/94... 10,647 11,376
2/28/95.... 11,070 12,028
5/31/95.... 11,651 12,870
8/31/95.... 11,583 13,196
11/30/95... 11,993 13,573
2/28/96.... 12,517 14,030
5/31/96.... 12,652 14,098
8/31/96.... 12,952 14,427
11/30/96... 13,775 15,200
</TABLE>
(1)The Merrill Lynch High-Yield Master Index includes publicly
placed, nonconvertible, coupon-bearing U.S. domestic debt with a
maturity of at least one year. Par amounts of all issues at the
beginning and ending of each reporting period must be at least
$10,000. Issues included in the index must have a rating that is
less than investment grade but not in default.
-----------------------------------------------
HIGH-YIELD BOND PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/96
-----------------------------------------------
1-year 14.86%
Since Inception (2/9/93) 8.77%
-----------------------------------------------
For the 12-month period ended November 30, 1996, the High-Yield
Bond Portfolio returned 14.86%, versus 11.99% for the benchmark,
the Merrill Lynch High-Yield Master Index. The overall conditions
for the high yield market were excellent in 1996, as the economy
expanded at a moderate pace of 2.5%. Merger and acquisition
activity was especially strong in two of the portfolio's larger
sector weightings, media and communications. In addition, although
all credit classifications of the high-yield bond market
participated in the strong market, the middle-tier-rated credits
performed quite well on a relative basis: credits rated "B" by
Standard and Poor's Corporation or "B2" by Moody's Investors
Service, Inc.
The manager's objective was to continue to focus on the
portfolio's risk profile by reducing its exposure to more
speculative situations and increasing weightings of better quality
securities. The portfolio's performance reflects that this
strategy was successful. Moving into 1997, the manager is becoming
more cautious of the high-yield market, as it does not know how
factors such as new investors, large coupon income, and an
increase in refinancings will persist into the new year. In
addition, the manager believes more modest economic growth could
put pressure on certain credits, and plans to focus on credit and
structure when evaluating holdings going forward.
Past performance is no guarantee of future results.
---------------------
117
<PAGE> 118
MORGAN STANLEY ASSET MANAGEMENT INC.
Worldwide High Income Portfolio
<TABLE>
<CAPTION>
Worldwide Lehman Brothers Blended First Boston JP Morgan
High Income Aggregate(1) Index(2) High Yield EMBI Plus
----------- --------------- -------- ------------ ---------
<S> <C> <C> <C> <C> <C>
10/28/94.. 10,000 10,000 10,000 10,000 10,000
2/28/94... 9,856 10,513 9,441 10,463 8,488
5/31/95... 10,775 11,140 10,583 11,122 10,008
8/31/95... 11,190 11,332 10,960 11,400 10,467
11/30/95.. 11,544 11,765 11,429 11,714 11,072
2/28/96... 12,265 11,799 12,161 12,152 12,054
5/31/96... 12,802 11,627 12,812 12,284 13,226
8/31/96... 13,417 11,795 13,560 12,554 14,490
11/30/96.. 14,645 12,477 14,695 13,078 16,321
</TABLE>
(1)The Lehman Brothers Aggregate Index combines several Lehman
Brothers fixed-income indexes to give a broad view of the bond
market--70% reflects the Government/Corporate Bond Index, 29%
reflects the Mortgage-Backed Securities Index and 1% reflects the
Asset-Backed Securities Index.
(2)The Blended Index combines 50% of the First Boston High-Yield
Index and 50% of the J.P. Morgan Emerging Markets Bond Index Plus.
The First Boston High-Yield Bond Index is a trader-priced
portfolio constructed to mirror the public high-yield debt market.
Securities in the index are rated B or lower. The J.P. Morgan
Emerging Markets Bond Index Plus is a market-weighted index
composed of all Brady Bonds outstanding; includes Argentina,
Brazil, Mexico, Nigeria, the Philippines, and Venezuela.
-------------------------------------------------
WORLDWIDE HIGH INCOME PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/96
-------------------------------------------------
1-year 26.87%
Since Inception (10/28/94) 19.99%
-------------------------------------------------
During the 12-month period ended November 30, 1996, the portfolio
returned 26.87%, compared with the 6.05% return of the Lehman
Brothers Aggregate Index, the 11.64% return of the First-Boston
High-Yield Index, the 47.41% return of the J.P. Morgan Emerging
Markets Bond Index Plus, and the 28.58% return of the Blended
Index. After this reporting period, the portfolio will no longer
be measured against the Lehman Brothers Aggregate Index. The
manager believes that a more accurate reflection of the holdings
in the portfolio would include a blend of 50% of the J.P. Morgan
Emerging Markets Bond Index Plus and 50% of the First Boston High
Yield Index.
The portfolio's performance has been a result of a substantial
tightening of credit spreads driven mainly by increasing signs of
economic growth in the main Latin economies, further stabilization
in countries such as Venezuela and Russia, and the potential for
credit rating upgrades for countries like the Philippines and
Panama. During the period, the portfolio concentrations were
reduced by increasing allocations to the Philippines, Panama,
Bulgaria, Jamaica, and Mexico. Positions in Brazil, South Africa,
Ecuador, and Turkey were reduced in turn.
Emerging market debt, which accounts for approximately 75% of the
portfolio, survived the increase in rates in the U.S. and turned
in a positive performance during the third and fourth quarters of
the year. Allocations to the Philippines were increased to capture
the upside potential on the back of a credit rating upgrade.
Mexican assets were increased to capitalize on improving
perceptions of a recovery in economic activity. The reductions in
South African bond positions were instigated by tepid policy
responses to the weakness in the currency. Ecuadorian Brady bonds
were trimmed as valuations approached fair levels.
The U.S. high-yield portion of the portfolio accounted for about
25% of assets over the period covered. The high-yield market
performed well during the period, and was supported by strong
equity and bond markets. The manager increased the portfolio's
weighting in larger, better quality credits, as well as in the
cable television industry and in the paper and packaging industry.
A few of the portfolio's larger holdings in its U.S. high-yield
segment include Viacom, Inc., Time Warner, Inc., and Revlon
Worldwide Corp.
As a result of changes in country and individual bond positions,
both interest rate and credit spread durations were increased
during the period under review. Declining interest rates and
credit spread tightening contributed to the outperformance of the
portfolio.
Past performance is no guarantee of future results.
- ---------------------
118
<PAGE> 119
SUNAMERICA ASSET MANAGEMENT CORP.
SunAmerica Balanced Portfolio
<TABLE>
<CAPTION>
Blended Index
(Lehman Brothers
SunAmerica Aggregate, S&P 500, Lehman Brothers
Balanced Portfolio Treasury Bills)(1) Aggregate(2) S&P 500(3)
------------------ ------------------- --------------- -------
<S> <C> <C> <C> <C>
6/03/96 ......... 10,000 10,000 10,000 10,000
6/30/96 ......... 10,030 10,072 10,134 10,038
7/31/96.......... 9,720 9,841 10,161 9,594
8/30/96.......... 9,880 9,954 10,144 9,797
9/30/96.......... 10,390 10,327 10,321 10,348
10/31/96.......... 10,560 10,568 10,550 10,634
11/30/96.......... 11,130 11,076 10,730 11,438
</TABLE>
(1)This Blended Index consists of 35% Lehman Brothers Aggregate Index, 55% S&P
500 Index, and 10% Treasury Bills.
(2)The Lehman Brothers Aggregate Index combines several Lehman Brothers
fixed-income indexes to give a broad view of the bond market -- 69% reflects the
Government/Corporate Bond Index, 29% reflects the Mortgage-Backed Securities
Index and 1.7% reflects the Asset-Backed Securities Index.
(3)The S&P 500 Index tracks the performance of 500 stocks representing a
sampling of the largest foreign and domestic stocks traded publicly in the
United States. Because it is market-weighted, the index will reflect changes in
larger companies more heavily than those in smaller companies. Treasury Bills
are short-term securities with maturities of one-year or less issued by the U.S.
Government.
- --------------------------------------------------------
SUNAMERICA BALANCED PORTFOLIO
TOTAL RETURN AS OF 11/30/96*
- --------------------------------------------------------
Since Inception (6/3/96) 11.30%
- --------------------------------------------------------
*Not annualized
This portfolio was first offered in the Trust on June 3, 1996.
While this time period is not sufficient enough to create a
meaningful track record, the portfolio did perform quite well
relative to the Blended Index benchmark and the Lehman Brothers
Aggregate Index. The portfolio returned 11.30% for the fiscal
year, the S&P 500 Index returned 14.38%, the Lehman Brothers
Aggregate Index returned 7.30%, and the Blended Index selected to
compare this portfolio returned 10.76% during the same period.
The manager will continue to focus the portfolio on quality names
with high earnings visibility and double digit growth. It
emphasizes strong secular trends expected to produce favorable
earnings in almost any economic environment, which include
interest sensitive sectors, as well as overweightings in
healthcare and technology. It is the manager's belief that these
sectors of the market will offer the best top and bottom line
growth, with solid margin expansion.
Past performance is no guarantee of future results.
---------------------
119
<PAGE> 120
PHOENIX INVESTMENT COUNSEL, INC.
Balanced/Phoenix Investment Counsel Portfolio
<TABLE>
<CAPTION>
Blended Index
Balanced/Phoenix (Lehman Brothers
Investment Counsel Aggregate, S&P 500, Lehman Brothers
Portfolio Treasury Bills)(1) Aggregate(2) S&P 500(3)
------------------ ------------------- --------------- ----------
<S> <C> <C> <C> <C>
10/28/94............ 10,000 10,000 10,000 10,000
2/28/95............ 10,509 10,639 10,513 10,817
5/31/95............ 11,112 11,473 11,140 11,923
8/31/95............ 11,755 11,935 11,332 12,636
11/30/95............ 12,539 12,661 11,765 13,698
2/28/96............ 12,965 13,131 11,799 14,571
5/31/96............ 13,059 13,445 11,627 15,313
8/31/96............ 12,776 13,383 11,795 15,002
11/30/96............ 14,262 14,892 12,477 17,514
</TABLE>
(1) This Blended Index consists of 35% Lehman Brothers Aggregate Index, 55% S&P
500 Index, and 10% Treasury Bills.
(2) The Lehman Brothers Aggregate Index combines several Lehman Brothers
fixed-income indexes to give a broad view of the bond market--69% reflects
the Government/Corporate Bond Index, 29% reflects the Mortgage-Backed
Securities Index and 1.7% reflects the Asset-Backed Securities Index.
(3) The S&P 500 Index tracks the performance of 500 stocks representing a
sampling of the largest foreign and domestic stocks traded publicly in the
United States. Because it is market-weighted, the index will reflect changes
in larger companies more heavily than those in smaller companies. Treasury
Bills are short-term securities with maturities of one-year or less issued
by the U.S. Government.
- ---------------------------------------------------
BALANCED/PHOENIX INVESTMENT COUNSEL PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/96
- ---------------------------------------------------
1-year 13.75%
Since Inception (10/28/94) 18.49%
- ---------------------------------------------------
The Balanced/Phoenix Investment Counsel Portfolio returned 13.75%
for the fiscal year ended November 30, 1996, compared with the S&P
500 Index return of 27.86%, the Lehman Brothers Aggregate Index
return of 6.05%, and the Blended Index, selected to compare this
portfolio most accurately, return of 17.62% for the same period.
Performance shortfall versus the Blended Index was predominantly
experienced in the second and third fiscal quarters while the
fourth quarter delivered a positive net gain versus the Blended
Index. Main contributors during the year were allocations to
companies represented by the manager's long term Energy Technology
and Capital Goods themes.
For the fiscal year, the fixed income portion of the portfolio
exceeded its comparable market measure, the Lehman Brothers
Aggregate Index. Sector selection was key within the fixed income
market with portfolio allocations to emerging markets, high yield,
and municipals delivering strong relative performance.
Past performance is no guarantee of future results.
- ---------------------
120
<PAGE> 121
GOLDMAN SACHS ASSET MANAGEMENT
Asset Allocation Portfolio
<TABLE>
<CAPTION>
Blended Index
(Lehman Brothers
Asset Allocation Aggregate, S&P 500, Lehman Brothers
Portfolio Treasury Bills)(1) Aggregate(2) S&P 500(3)
---------------- ------------------- --------------- ---------
<S> <C> <C> <C> <C>
7/1/93................... 10,000 10,000 10,000 10,000
8/31/93.................. 10,250 10,071 10,231 9,959
11/30/93.................. 10,360 10,082 10,209 9,991
2/28/94.................. 10,800 10,197 10,222 10,173
5/31/94.................. 10,522 9,971 9,888 10,015
8/31/94.................. 10,955 10,340 10,075 10,504
11/30/94.................. 10,391 10,027 9,896 10,097
2/28/95.................. 11,177 10,724 10,404 10,922
5/31/95.................. 11,961 11,637 11,024 12,039
8/31/95.................. 12,620 12,134 11,215 12,759
11/30/95.................. 13,103 12,932 11,643 13,831
2/28/96.................. 13,700 13,439 11,677 14,713
5/31/96.................. 14,055 13,766 11,507 15,461
8/31/96.................. 14,033 13,680 11,673 15,147
11/30/96.................. 15,759 15,362 12,347 17,684
</TABLE>
(1) This Blended Index consists of 40% Lehman Brothers Aggregate Index and 60%
S&P 500 Index.
(2) The Lehman Brothers Aggregate Index combines several Lehman Brothers
fixed-income indexes to give a broad view of the bond market--70% reflects
the Government/Corporate Bond Index, 29% reflects the Mortgage-Backed
Securities Index and 1% reflects the Asset-Backed Securities Index.
(3) The S&P 500 Index tracks the performance of 500 stocks representing a
sampling of the largest foreign and domestic stocks traded publicly in the
United States. Because it is market-weighted, the index will reflect changes
in larger companies more heavily than those in smaller companies.
ASSET ALLOCATION PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/96
- -------------------------------------------------------------
1-year 20.27%
Since Inception (7/1/93) 14.23%
- -------------------------------------------------------------
For the 12-month period ended November 30, 1996, the Asset
Allocation Portfolio returned 20.27%, compared with the 27.86%
return of the S&P 500 Index, the 6.05% return of the Lehman
Brothers Aggregate Index, and the 18.79% return of the Blended
Index selected for a more accurate comparison with this portfolio
during the same period.
The equity portion of the portfolio (including cash) returned
30.49% compared to the S&P 500 Index return of 27.86% during the
reporting period. The best performing stock in the portfolio was
petroleum products refiner Tosco Corp. (a 1.6% position), which
returned 102.5% over the same period. Other outperformers included
Sunbeam Corp. (a 1.2% position) and BankAmerica Corp. (a 1.6%
position). Weaker performers included Fleming Companies Inc. (a
1.2% position), and Geon Co. (a 0.8% position).
The fixed income portion of the portfolio returned 7.50% during
the reporting period, versus 6.05% for the Lehman Brothers
Aggregate Index. The fixed income portion of the portfolio is
currently at a 4.6 year maturity versus the index of 4.7 years,
and the portfolio has a yield to maturity of 7.31%. Strong
performance on the fixed income side was primarily due to the
portfolio's investments in corporate bonds and emerging market
debt. In addition, the portfolio also benefited from its
mortgage-backed and asset-backed holdings when both sectors
strengthened during the period. As of November 30, 1996, the
portfolio's largest allocation was in corporate bonds,
overweighted relative to the index, which significantly benefited
performance. Within the sector, the manager stressed industrial
and financial issues.
Past performance is no guarantee of future results.
---------------------
121
<PAGE> 122
FEDERATED INVESTORS
Utility Portfolio
<TABLE>
<CAPTION>
Utility
Portfolio S&P 500(1) Blended Index(2)
--------- ---------- ----------------
<S> <C> <C> <C>
6/3/96........ 10,000 10,000 10,000
6/30/96....... 10,280 10,038 10,521
7/31/96....... 9,820 9,594 10,218
8/30/96....... 9,850 9,797 10,138
9/30/96....... 9,970 10,348 10,240
10/31/96...... 10,330 10,634 10,542
11/30/96...... 10,750 11,438 11,067
</TABLE>
--------------------------------------------
UTILITY PORTFOLIO
TOTAL RETURN AS OF 11/30/96*
--------------------------------------------
Since Inception (6/3/96) 7.50%
--------------------------------------------
*Not annualized
---------------
(1) The S&P 500 Index tracks the performance of 500 stocks
representing a sampling of the largest foreign and domestic stocks
traded publicly in the United States. Because it is
market-weighted, the index will reflect changes in larger
companies more heavily than those in smaller companies.
(2) The Blended Index is comprised of 35% S&P Utility Index and
65% for the S&P Communications Service Index, on a market
capitalization weighted basis. The S&P Utility Index is presently
comprised of 40 stocks from the electric and natural gas
industries. The S&P Communications Service Index is comprised of
the companies listed in the telecommunications' sectors of the S&P
400, 500, and 600. Created in July of 1996, the index includes
cellular and wireless service providers including pagers, long
distance providers and the telephone group companies (local
service providers).
This portfolio was first offered in the Trust on June 3, 1996. Its
return through November 30, 1996 was 7.50%, as compared with the
S&P 500 Index of 14.38% for the same period. It should be noted
that as of July 10, 1996, Standard & Poors removed telephone
utilities from its utility index and placed them in a separate S&P
Communications Index. For a more closely matched comparison, the
manager has created a market-weighted blended index of the S&P
Utility and the S&P Communications indices, which returned 10.67%
during the reporting period ended November 30, 1996.
The portfolio's performance was bolstered by a 12% allocation to
natural gas stocks, a sector which enjoyed excellent price
appreciation throughout 1995 and 1996, aided by strong natural gas
prices and merger speculation. A 9% allocation to international
utilities also contributed to the portfolio's return, as
international utilities significantly outperformed domestic
utilities in 1996.
Relative laggards were the electric and telephone sectors, which
represent 40% and 20% of the portfolio, respectively. The
portfolio holds 23% in non-utility common stocks and convertible
securities, which help diversify and possibly offset some of the
interest rate risk inherent in utilities, and which have
contributed significantly to the defensive characteristics of the
portfolio.
Past performance is no guarantee of future results.
- ---------------------
122
<PAGE> 123
ALLIANCE CAPITAL MANAGEMENT L.P.
Growth-Income Portfolio
<TABLE>
<CAPTION>
Growth-Income
Portfolio S&P 500(1)
----------------- -------------
<S> <C> <C>
2/9/93................. 10,000 10,000
2/28/93................ 9,970 9,915
5/31/93................ 10,190 10,144
8/31/93................ 10,630 10,517
11/30/93................ 10,610 10,551
2/28/94................ 10,730 10,743
5/31/94................ 10,618 10,576
8/31/94................ 10,959 11,092
11/30/94................ 10,377 10,663
2/28/95................ 11,230 11,533
5/31/95................ 12,141 12,713
8/31/95................ 12,921 13,473
11/30/95................ 13,894 14,606
2/28/96................ 14,775 15,537
5/31/96................ 15,356 16,327
8/31/96................ 14,966 15,995
11/30/96................ 17,703 18,675
</TABLE>
(1) The S&P 500 Index tracks the performance of 500 stocks representing a
sampling of the largest foreign and domestic stocks traded publicly in the
United States. Because it is market-weighted, the index will reflect changes
in larger companies more heavily than those in smaller companies.
- ------------------------------------------------
GROWTH-INCOME PORTFOLIOS
Average Annual Total Returns as of 11/30/96
- ------------------------------------------------
1-year 27.41%
Since Inception (2/9/93 16.18%
- ------------------------------------------------
*Not annualized.
The Growth-Income Portfolio returned 27.41% over the 12-month
period ended November 30, 1996, compared with 27.86% for the S&P
500 Index.
The portfolio's technology holdings made the most notable positive
contribution to performance over the last 12 months. The
portfolio's single largest position is Intel, which has had a very
positive impact on the portfolio. The portfolio also benefited
from strong performance by Monsanto, which is engaged in a
significant restructuring effort.
The industry that had the biggest negative impact on the portfolio
performance was healthcare services. HMO companies are facing
fierce competition, and have not been able to increase prices very
much in 1996. Their stocks have suffered as a result. The manager
has made some changes in this sector of the portfolio, but
continues to believe that the healthcare services industry offers
good long-term growth opportunities for the best-positioned
companies.
The Growth-Income Portfolio continues to be a well-diversified
portfolio of companies operating in a wide variety of industries.
The portfolio focuses on stocks that offer an attractive
combination of growth and value. The portfolio dividend yield is
1.5%.
Past performance is no guarantee of future results.
---------------------
123
<PAGE> 124
FEDERATED INVESTORS
Federated Value Portfolio
<TABLE>
<CAPTION>
Federated Value
Portfolio S&P 500(1)
--------------- ----------
<S> <C> <C>
6/3/96 ................... 10,000 10,000
6/30/96................... 9,900 10,036
7/31/96................... 9,340 9,594
8/30/96................... 9,620 9,797
9/30/96................... 10,120 10,348
10/31/96................... 10,360 10,634
11/30/96................... 11,080 11,438
</TABLE>
(1)The S&P 500 Index tracks the performance of 500 stocks representing a
sampling of the largest foreign and domestic stocks traded publicly in the
United States. Because it is market-weighted, the index will reflect changes in
larger companies more heavily than those in smaller companies.
- ----------------------------------------------------------
FEDERATED VALUE PORTFOLIO
TOTAL RETURN AS OF 11/30/96*
- ----------------------------------------------------------
Since Inception (6/3/96) 10.80%
- ----------------------------------------------------------
*Not annualized.
During the fiscal year ended November 30, 1996, the U.S. stock
market advanced strongly for the second consecutive year. The
Federated Value Portfolio was first offered in the Trust on June
3, 1996, returning 10.80% from its inception through November 30,
1996. The performance lagged that of the S&P 500 Index at 14.38%
for the same time period.
The portfolio incorporates the following themes: beneficiaries of
corporate restructuring, such as AT&T, Rubbermaid, Unilever NV and
CIGNA; companies which generate significant excess cash flow such
as Philip Morris, and Lockheed Martin; and dominant companies with
superior management, such as General Electric, Wal-Mart Stores,
Citicorp, and Philip Morris.
The best performing sectors this year included technology and
finance. The manager has reduced the portfolio's exposure in
technology from one of overweight to underweight, as compared to
the market. The manager's valuation methods indicate that this
sector is approaching the upper-end of historic measures and that
taking profits to reduce overall exposure is prudent at this time.
Finance valuations, while not as attractive as they were last
year, are not excessive, so the portfolio's exposure has been
reduced to a market weight. However, the manager has shifted the
sector's emphasis from institutions that are simply benefiting
from the current favorable credit cycle, to financial institutions
that have unique factors working for them. Exposure to industries
which have historically been more defensive, such as utilities,
consumer non-durables, and energy, has also been increased.
Past performance is no guarantee of future results.
- ---------------------
124
<PAGE> 125
DAVIS SELECTED ADVISERS, L.P.
Venture Value Portfolio
<TABLE>
<CAPTION>
Venture Value
Portfolio S&P 500(1)
------------- ----------
<S> <C> <C>
10/28/94.................. 10,000 10,000
2/28/95.................. 10,684 10,817
5/31/95.................. 11,678 11,923
8/31/95.................. 12,952 12,636
11/30/95.................. 13,514 13,698
2/28/96.................. 14,113 14,571
5/31/96.................. 14,623 15,313
8/31/96.................. 14,572 15,002
11/30/96.................. 17,221 17,514
</TABLE>
(1)The S&P 500 Index tracks the performance of 500 stocks representing a
sampling of the largest foreign and domestic stocks traded publicly in the
United States. Because it is market-weighted, the index will reflect changes in
larger companies more heavily than those in smaller companies.
- ------------------------------------------------
VENTURE VALUE PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/96
- ------------------------------------------------
1-year 27.44%
Since Inception (10/28/94) 29.65%
- ------------------------------------------------
The Venture Value Portfolio closely tracked the S&P 500 Index over
the reporting year ended November 30, 1996, posting a 27.44%
return, versus 27.86% by its benchmark. Over the past six months,
the portfolio's holdings in the financial sector have performed
well, and the manager believes financial companies are growth
stocks in disguise. This is a sector favored to outperform the
rest of the market due to the long-term need for baby boomers to
save for retirement. Top-performing holdings within the sector
include American Express Co., Citicorp, Wells Fargo & Co., General
Reinsurance Corp., and Morgan Stanley.
A sector where the manager increased weightings is energy, which
has been recovering from a 10-year slump in commodities prices. In
particular, the manager believes in companies such as Noble
Affiliates, Inc., Schlumberger Ltd.,and Burlington Resources, Inc.
Davis Selected Advisers will continue to seek out financial stocks
that fit its profile of being overlooked, undervalued growth
companies selling at value prices. The manager has been successful
at finding top-quality management teams that are innovatively
responsive to change, have proven records, and can build a
business through their long-term vision.
Past performance is no guarantee of future results.
---------------------
125
<PAGE> 126
ALLIANCE CAPITAL MANAGEMENT L.P.
Alliance Growth Portfolio
<TABLE>
<CAPTION>
Alliance Growth Russell 1000
Portfolio Growth(1)
--------------- ------------
<S> <C> <C>
2/9/93...................... 10,000 10,000
2/28/93..................... 9,870 9,830
5/31/93..................... 10,160 9,956
8/31/93..................... 10,640 10,085
11/30/93..................... 10,920 10,220
2/28/94..................... 11,160 10,443
5/31/94..................... 10,726 10,137
8/31/94..................... 11,276 10,742
11/30/94..................... 10,818 10,497
2/28/95..................... 11,540 11,358
5/31/95..................... 13,130 12,363
8/31/95..................... 15,068 13,389
11/30/95..................... 16,109 14,561
2/28/96..................... 16,841 15,410
5/31/96..................... 17,742 16,388
8/31/96..................... 16,696 15,848
11/30/96..................... 20,628 18,388
</TABLE>
(1)The Russell 1000 Growth Index consists of stocks with a greater-than-average
growth orientation. Companies in this index tend to exhibit higher price-to-book
and price-earnings ratios, lower dividend yields and higher forecasted growth
values.
- ------------------------------------------------
ALLIANCE GROWTH PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/96
- ------------------------------------------------
1-year 28.05%
Since Inception (2/9/93) 20.94%
- ------------------------------------------------
The Alliance Growth Portfolio achieved returns of 28.05% for the
one-year period ended November 30, 1996, outperforming both its
benchmark, the Russell 1000 Growth Index at 26.28%, as well as the
S&P 500 Index at 27.86%.
The manager maintains a positive outlook for large cap growth
issues, and continues to be overweighted significantly in the
technology and financial sectors with modest overweights in
consumer and healthcare sectors. The portfolio's two largest
holdings are Intel and Philip Morris. The current portfolio
dividend yield is 1.2%, and the portfolio seeks a P/E comparable
to the S&P 500 for earnings per share growth rates anticipated to
be twice those of the S&P 500.
The portfolio's performance benefited from holdings in Intel,
Cisco, and Microsoft in technology. Its overweight in the
financial sector, which includes Fannie Mae, MBNA Corp., Merrill
Lynch & Co., Inc., and Household International, helped
performance. Pharmaceutical (Merck, Pfizer) and medical equipment
(Medtronic) holdings have helped considerably in the fourth
quarter. Philip Morris and Disney have also contributed during the
recent months.
Past performance is no guarantee of future results.
- ---------------------
126
<PAGE> 127
PHOENIX INVESTMENT COUNSEL, INC.
Growth/Phoenix Investment Counsel Portfolio
<TABLE>
<CAPTION>
Growth/Phoenix Inv.
Cnsl. Portfolio S&P 500(1)
------------------- ----------
<S> <C> <C>
2/9/93.................. 10,000 10,000
2/28/93................. 9,970 9,915
5/31/93................. 10,420 10,144
8/31/93................. 10,550 10,517
11/30/93................. 10,780 10,551
2/28/94................. 11,210 10,743
5/31/94................. 10,437 10,576
8/31/94................. 10,477 11,092
11/30/94................. 10,065 10,663
2/28/95................. 10,537 11,533
5/31/95................. 11,433 12,713
8/30/95................. 12,594 13,473
11/30/95................. 13,378 14,606
2/28/96................. 13,846 15,537
5/31/96................. 14,496 16,327
8/31/96................. 14,177 15,995
11/30/96................. 15,839 18,675
</TABLE>
(1) The S&P 500 Index tracks the performance of 500 stocks representing a
sampling of the largest foreign and domestic stocks traded publicly in the
United States. Because it is market-weighted, the index will reflect changes
in larger companies more heavily than those in smaller companies.
- ------------------------------------------------
GROWTH/PHOENIX INV. COUNSEL PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/96
- ------------------------------------------------
1-year 18.40%
Since Inception (2/9/93) 12.84%
- ------------------------------------------------
For the 12-month period ended November 30, 1996, the
Growth/Phoenix Investment Counsel Portfolio lagged the S&P 500
Index, returning 18.40%, versus 27.86% for the benchmark.
In retrospect, portfolio performance was dampened throughout the
year by the manager's more guarded stance toward the stock market.
While this approach met with good results through August
1996 -- and especially in the difficult market environment during
July -- the portfolio's conservative posture did not benefit from
the dramatic rebound in equity prices during the last quarter of
the fiscal year. Areas of portfolio outperformance during the
fiscal year included energy companies, basic materials, and
capital goods companies. Areas of relative portfolio
underperformance include allocations to technology, financials,
and healthcare.
Past performance is no guarantee of future results.
---------------------
127
<PAGE> 128
PROVIDENT INVESTMENT COUNSEL, INC.
Provident Growth Portfolio
<TABLE>
<CAPTION>
Provident Growth Russell 1000
Portfolio Growth(1)
---------------- ------------
<S> <C> <C>
2/ 9/93................. 10,000 10,000
2/28/93................. 9,910 9,830
5/31/93................. 9,810 9,956
8/31/93................. 10,190 10,085
11/30/93................. 10,040 10,220
2/28/94................. 10,480 10,443
5/31/94................. 10,039 10,137
8/31/94................. 10,499 10,742
11/30/94................. 10,059 10,497
2/28/95................. 10,399 11,358
5/31/95................. 11,227 12,363
8/31/95................. 12,721 13,389
11/30/95................. 13,143 14,561
2/28/96................. 13,323 15,410
5/31/96................. 14,236 16,388
8/31/96................. 13,614 15,848
11/30/96................. 15,761 18,388
</TABLE>
(1)The Russell 1000 Growth Index consists of stocks with a greater-than-average
growth orientation. Companies in this index tend to exhibit higher price-to-book
and price-earnings ratios, lower dividend yields and higher forecasted growth
values.
- ------------------------------------------------
PROVIDENT GROWTH PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/96
- ------------------------------------------------
1-year 19.92%
Since Inception (2/9/93) 12.69%
- ------------------------------------------------
During the 12-month period ended November 30, 1996, the Provident
Growth Portfolio posted a gain of 19.92%, versus the Lipper Growth
Funds Index return of 19.74%, the S&P 500 Index return of 27.86%,
and its benchmark, the Russell 1000 Growth Index, which returned
26.28%. The portfolio held significant weightings in the
financial, technology, and healthcare sectors during this time
period. Finance stocks like MBNA Corp., and Federal National
Mortgage Association benefited from a positive interest rate
environment. Technology services companies like Oracle Systems
Corp. and Microsoft Corp. also provided outperformance due to
continuing positive fundamental trends. And healthcare positions
such as Columbia Healthcare/HEA, Amgen Inc., and Pfizer also
contributed to sector gains.
Underperformance relative to the Russell 1000 Growth Index
partially resulted from the manager's significant technology
weighting in December of 1995. In the second fiscal quarter some
early period overweightings in electronic technology names like
Hewlett Packard, Glenayre Technologies, and U.S. Robotics hurt
performance as the stocks came under pressure. Additionally, the
portfolio's significant underweighting in consumer non-durable
names like Coca Cola, Colgate, and Kellogg delivered negative
index comparisons throughout this period.
The capitalization "size" trend, which has recently detracted from
portfolio performance, should not continue as investors refocus on
solid earnings growth. It has been the manager's experience that
size and style factors often times cause a dichotomy in
performance that is not fully explained by fundamentals. As such,
the manager will remain focused on the visibility and quality of
the earnings for the portfolio, and has little reason to doubt
that the strength of these fundamentals will drive price
appreciation in the portfolio into 1997.
Past performance is no guarantee of future results.
- ---------------------
128
<PAGE> 129
ALLIANCE CAPITAL MANAGEMENT L.P.
Global Equities Portfolio
<TABLE>
<CAPTION>
Global Equities MCSI World
Portfolio Index(1)
--------------- ----------
<S> <C> <C>
2/ 9/93................. 10,000 10,000
2/28/93................. 9,970 10,110
5/31/93................. 10,670 11,446
8/31/93................. 11,260 12,102
11/30/93................. 10,990 11,497
2/28/94................. 12,090 12,694
5/31/94................. 11,976 12,561
8/31/94................. 12,409 13,156
11/30/94................. 11,755 12,610
2/28/95................. 11,614 12,732
5/31/95................. 12,649 13,935
8/30/95................. 13,054 14,310
11/30/95................. 13,574 15,006
2/28/96................. 14,374 15,829
5/31/96................. 15,078 16,492
8/31/96................. 14,648 16,182
11/30/96................. 16,046 17,891
</TABLE>
(1)The MSCI World Index is one of the Morgan Stanley Capital International
indexes and measures stock market performance in the U.S., Europe, Canada,
Australia, New Zealand, the Far East and emerging markets.
- ------------------------------------------------
GLOBAL EQUITIES PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/96
- ------------------------------------------------
1-year 18.21%
Since Inception (2/9/93) 13.22%
- ------------------------------------------------
The Global Equities Portfolio achieved performance of 18.21% for
the 12-month period ended November 30, 1996, versus a return of
19.23% for the MSCI World Index for the same period. The
portfolio's gross yield was 2.1% as of November 30, 1996, with a
diversified mix of 318 stocks across 27 countries.
At the country level, the portfolio benefited from overweighted
positions in the United Kingdom, France, and Italy. The positive
impact was more than offset by an overweighted position in the
Japanese market, which declined in excess of 5% (in U.S. dollar
terms) for the 12-month reporting period. The portfolio also
lagged due to an underweighted position in the United States.
Stock selection was generally positive in Europe, particularly in
Switzerland, the Netherlands, and Italy. Stock selection was
neutral in the U.K. and incrementally positive (relative to the
benchmark) in Japan. Stock selection within the United States was
slightly negative relative to the benchmark.
Top performing stocks for the period included Salomon, Bayer, and
Italian issues ENI and Telecom Italia. Ciba-Geigy and Sandoz,
which announced merger plans, were each up in excess of 35% during
the period. In Japan, consumer manufacturing companies --
particularly Honda and Toyota -- were positive relative
performers. Hong Kong performers included New World Development,
Sun Hung Kai Properties, and Wharf Holdings, all up in excess of
50% for the period.
Past performance is no guarantee of future results.
---------------------
129
<PAGE> 130
MORGAN STANLEY ASSET MANAGEMENT INC.
International Diversified Equities Portfolio
<TABLE>
<CAPTION>
International Diversified
Equities Portfolio MSCI EAFE(1)
------------------------- ------------
<S> <C> <C>
10/28/94................. 10,000 10,000
2/28/95................. 9,073 9,655
5/31/95................. 9,759 10,525
8/31/95................. 10,021 10,573
11/30/95................. 10,233 10,790
2/28/96................. 10,925 11,316
5/31/96................. 11,411 11,682
8/31/96................. 10,905 11,437
11/30/96................. 11,752 12,091
</TABLE>
(1)The Morgan Stanley Capital International Europe, Australia, and Far East
Index (EAFE) represents the foreign stocks of 19 countries in Europe, Australia
and the Far East.
- -------------------------------------------------------------
INTERNATIONAL DIVERSIFIED EQUITIES PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/96
- -------------------------------------------------------------
1-year 14.85%
Since Inception (10/28/94) 8.02%
- -------------------------------------------------------------
For the 12-month period ended November 30, 1996, the International
Diversified Equities Portfolio's return of 14.85% outperformed
that of the MSCI EAFE Index, at 12.06%.
The largest contributor to performance was the manager's decision
to hedge exposure to the Japanese yen and Deutsche Mark. Country
allocations to Japan, Germany, Spain, and Hong Kong were positive
for performance. An underweight in the U.K. detracted from
returns, as did overweight positions in Italy, Singapore, and
Thailand.
Singapore is still reeling from the government's anti-speculation
real estate measures, but the market is attractively priced and
the fundamentals are sound. Thailand has been a big disappointment
as political, economic, and profit concerns have rocked the market
all year. The manager believes the bad news has been well
discounted however, and that the market has bottomed. Favorable
performance in Brazil also enhanced portfolio returns.
Going forward, the portfolio is fully invested with a very slight
underweight in Japan (approximately 35% versus the 37% EAFE
benchmark weighting), an overweight in Asia, and an underweight in
Europe.
Past performance is no guarantee of future results.
- ---------------------
130
<PAGE> 131
SUN AMERICA ASSET MANAGEMENT CORP.
Aggressive Growth Portfolio
<TABLE>
<CAPTION>
Aggressive Growth
Portfolio Russell 2000(1)
----------------- ---------------
<S> <C> <C>
6/3/96.................. 10,000 10,000
6/30/96................. 9,900 9,589
7/31/96................. 8,870 8,752
8/30/96................. 9,270 9,260
9/30/96................. 9,980 9,622
10/31/96................ 9,900 9,474
11/30/96................ 10,360 9,864
</TABLE>
(1)The Russell 2000 Index is comprised of the smallest 2000 companies in the
Russell 3000 Index, representing approximately 11% of the Russell 3000 total
market capitalization. The Index was developed with a base value of $135.00 as
of December 31, 1986.
- -------------------------------------------------------------
AGGRESSIVE GROWTH PORTFOLIO
TOTAL RETURN AS OF 11/30/96*
- -------------------------------------------------------------
Since Inception (6/3/96) 3.60%
- -------------------------------------------------------------
*Not annualized.
The Aggressive Growth Portfolio became available in the Trust on
June 3, 1996. The portfolio outpaced the Russell 2000 Index with a
return of 3.60%, versus the benchmark's -1.36%.
The portfolio's investments span many sectors with technology,
including hardware, software components, and equipment--all
providing the building blocks to other industries. Another theme
providing some evidence of disinflation and productivity
improvement represented in the portfolio is energy production and
services. Investments in this sector continue to benefit as demand
continues to grow at a rapid pace, driven by worldwide
industrialization, while exploration costs are dropping due to
technology advancements.
Other sectors contributing to performance include the service
industry and specialty retailing, with an emphasis on well-managed
branded retailers or manufacturers.
Past performance is no guarantee of future results.
---------------------
131
<PAGE> 132
-----------------
BULK RATE
U.S. POSTAGE
PAID
HDM
-----------------
This report is for the general information of contract owners of the
Polaris Variable Annuity. It is not authorized
for distribution to prospective purchasers unless accompanied or preceded
by a current prospectus.
R-1411-AR
