<PAGE> 1
P O L A R I S
S U N A M E R I C A
S E R I E S T R U S T
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ANNUAL REPORT
NOVEMBER 30, 1997
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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 and
PolarisII Variable Annuities from Anchor National Life Insurance
Company and the Polaris Variable Annuity from First SunAmerica
Life Insurance Company.
The following is a combined perspective on the U.S. and global
economies for the one-year reporting period ended November 30,
1997, from eight of the nine investment managers who manage the
Polaris portfolios (excluding Wellington Management Company, LLP,
which manages the portfolios in the Anchor Series Trust, for which
you will receive a separate and complete report in about one
month). Also included is a 1998 outlook on the U.S. and global
markets from the Polaris investment managers.
THE YEAR IN REVIEW
U.S. Economy
Despite the uncertainty that the recent crisis in Asia has
brought to the U.S. economy, the U.S. remains in a moderate
growth, low inflationary environment. The consensus view of the
Polaris investment managers is echoed by Federal Reserve Chairman
Alan Greenspan, who recently commented on the state of the U.S.
economy: "Growth appears to have remained robust and inflation
low, and even falling, despite an ever-tightening labor market."
SunAmerica Asset Management notes that real Gross Domestic
Product (GDP) growth increased to 3.5% in the third quarter of
1997, in line with expectations and up from the 3.3% GDP growth in
the second quarter. The increase in GDP growth reflects very
strong consumer demand for domestic goods and services, an
indication of continued strength in the U.S. economy despite a
widening trade deficit and less inventory building. On the
inflation front, the Consumer Price Index (CPI) has gone from 2.8%
to 2.2%, indicating very mild inflation and the smallest growth in
more than 30 years. SunAmerica Asset Management adds, "As we come
to the end of the seventh year of this economic recovery,
inflation appears under control. We are very cognizant of the fear
of wage inflation, but the latest numbers suggest that wage
inflation is still running below 3.5%, which is quite acceptable
for this stage of an economic recovery."
U.S. Stock Market
On December 5, 1996, when Alan Greenspan startled the U.S.
equity markets with his "irrational exuberance" speech, the Dow
Jones Industrial Average ("the Dow") stood at 6440. Although the
equity market had its ups and downs since then, the Dow ended
November 30, 1997 near 8000 -- up over 20%. The broader Standard &
Poor's Composite Index of 500 Stocks ("S&P 500") rose an
impressive 28.59% for the year, marking an unprecedented third
year of 20%-plus gains. Phoenix Investment Counsel attributes this
market advance in 1997 to a powerful combination of strong
corporate profit growth, falling interest rates, and a global
flight to quality in the aftermath of collapsing Asian-Pacific
markets.
Despite the U.S. stock market's solid strength, there were
periods of intense volatility. Putnam Investments notes that the
first major event of 1997 to impact U.S. financial
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1
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markets was a 25-basis-point increase in interest rates by the
Federal Reserve in March. In response, U.S. equities gave up
almost 10% of their market value in just one month.
"The dangers of market timing -- a strategy we studiously
avoid -- were apparent during this second quarter," says Federated
Investors. While conventional wisdom in early April was that the
U.S. economy was too strong and that the Fed would be forced to
raise interest rates again, what followed instead was a quick
market recovery. The U.S. equity market rebounded for a robust
spring, seemingly inspired by the notion among investors that the
U.S. economy was slowing and that the Federal Reserve was unlikely
to take further action. By the end of the second quarter, this
renewed optimism led to a market increase from the low single
digits to a 20% total year-to-date return as of June 30, 1997.
In the second half of 1997, U.S. equities saw more change. In
August, the U.S. stock market suffered its worst month in more
than seven years, as it reacted to the growing financial crisis in
Asia. The turmoil peaked in late October, when the Dow dropped
approximately 7%, one of the largest single-day drops in history.
While most U.S. stocks have since recouped their losses, the
economic and market uncertainty created by the Asian turmoil have
apparently led to several shifts in investor sentiment. According
to Federated Investors, growth stocks (stocks with higher
price-to-earnings ratios and higher growth rates) surpassed
expectations in the second quarter of 1997, while value stocks
(stocks with lower prices and good potential) regained investor
confidence during the third quarter. Phoenix Investment Counsel
echoes this sentiment, indicating that there was a resurgence in
the price of large-capitalization defensive stocks in late 1997.
U.S. Bond Market
With declining inflation, a stronger U.S. dollar, and a quickly
evaporating U.S. budget deficit, the U.S. bond market achieved
strong results for the fiscal year ended November 30, 1997. The
Lehman Brothers Aggregate Bond Index, which provides a
representative measure of the overall fixed income market, was up
a solid 7.58%. As interest rates fell, bonds with the longest
maturities posted the highest returns, with 30-year Treasuries up
13%, according to Lehman Brothers. Federated Investors indicates
that the bond market was affected by two distinct interest rate
trends during the period. In the first six months, interest rates
increased as the Federal Reserve took action to slow economic
growth and prevent rising inflation. The latter half of 1997 saw a
complete reversal, with rates falling in response to
slower-than-expected economic activity. For the 12-month period,
interest rates declined overall, pushing bond prices higher for
the fiscal year.
While the turmoil in Asia battered the U.S. equity market, the
consensus among the Polaris portfolio managers was that the Asian
crisis actually helped to strengthen sectors of the U.S. bond
market. With increasing risks overseas, many investors turned to
U.S. Treasuries in a "flight to quality." Federated Investors
says, "U.S. Treasury securities became the most attractive
investment class in the entire world as investors, at least
temporarily, shunned the domestic and foreign stock markets, along
with foreign bond markets." In addition, Goldman Sachs Asset
Management points out that the Asian turmoil should reduce U.S.
import prices, helping to tame inflationary pressures at the
consumer level -- a trend that should also support U.S. bond
prices.
According to SunAmerica Asset Management, the positive inflation
environment and the Asian market difficulties helped to push the
yield on the 30-year U.S. Treasury Bond below 6.0%, its lowest
rate in two years. While the data continues to show a rapidly
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2
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expanding U.S. economy with an ever-tightening labor market, the
Federal Reserve has been able to keep short-term rates steady at
approximately 5.0%.
Global Market
In the international markets, the biggest news was, of course,
the currency and stock market crises that began in Southeast Asia
and quickly spread to other emerging markets in Latin America and
Eastern Europe. According to Putnam Investments, the events in
Asia left financial markets worldwide in the grip of substantial
volatility. After the Thai government allowed the baht to float on
July 2, the Southeast Asian currencies began crumbling, one after
another, sending stock markets across the world reeling. In
August, the U.S. stock market suffered its worst month in more
than seven years, the German stock market endured a correction of
12%, and the sell-off began in the emerging stock markets. The
turmoil peaked in the U.S. on October 27, 1997, when the Dow
dropped more than 7% in a single day. The Japanese economy also
fell sharply, a reflection of its substantial business and trade
exposure to Asia. As Asian currencies plummeted, Japan's already
weak financial system faced rising trade deficits and loan
defaults. By year end, the only markets in the Asian-Pacific
region that were still positive in local currency terms were
India, Taiwan, and Australia. Malaysia, Thailand, Indonesia, South
Korea, and the Philippines all experienced plunges of
approximately 70% in U.S. dollars, while Japan dropped over 25%,
according to the Dow Jones World Stock indices.
OUTLOOK FOR 1998
U.S. Stock and Bond Markets
Although some managers are more optimistic than others, all of
the Polaris investment managers expect a continuation of benign
inflation, slow economic growth, and solid corporate earnings for
1998. SunAmerica Asset Management remains particularly bullish:
"Nothing so far has happened to hurt the longer-term bull case for
financial assets. In fact, the recent pullback triggered by the
Asian crisis argues for an extension of the overall economic
cycle, which is positive for both the U.S. stock and bond markets.
In the near term, we believe that inflation will continue to
remain in check (in the 2.0% range), corporate profits will stay
positive (growth of about 5 - 6% in 1998 versus 8 - 9% in 1997),
and liquidity will continue to push the market to new highs."
Phoenix Investment Counsel is also optimistic about the U.S.
stock market. "Looking ahead, our long-term outlook for the stock
market remains positive. Although valuation levels have obviously
risen for most of the market, the economy continues to grow at a
moderate yet sustainable pace, inflation remains benign, and
overall corporate earnings are still positive. Given these
factors, we continue to emphasize a number of promising growth
opportunities in the health care, energy, technology, and
financial sectors."
While still positive, Alliance Capital Management, Putnam
Investments, and Federated Investors offer a more cautious outlook
for U.S. equities. Alliance notes that the slowdown in Asia
threatens an important source of profit growth for U.S.
corporations. With valuations already near record levels, and
signs of upward wage pressures appearing, Alliance contends that
volatility may increase if investors become concerned about
slowing global growth or escalating wages. "The market probably
won't offer much more than a high single-digit return over the
next year," concludes Alliance. Likewise, Putnam sees a rise in
"event risk" due to the reverberations from the Far East
situation. In addition,
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Putnam cautions that the "aging of the strong stock market could
result in a correction." With the potential volatility, 1998 will
be viewed as a "stockpicker's year," says Federated -- a year when
research-driven active management should offer greater investor
value than market timing.
In regard to U.S. bonds, the moderate growth, low inflationary
environment should continue to support favorable returns. Both
SunAmerica Asset Management and Goldman Sachs Asset Management
believe that U.S. interest rates will be stable to falling over
the near term. With the Asian turmoil and the strong U.S. dollar
working to slow domestic economic growth, Goldman asserts, the
Federal Reserve should refrain from raising interest rates at
least until mid-1998.
Finally, Davis Selected Advisers brings an interesting long-term
perspective to its outlook. "Assuming a starting level of 8,000
for the Dow and compounding that figure at 7% annually, the Dow
would be at 64,000 in three decades. This figure is so far ahead
of where the market is today that we tend not to worry about the
next 2,000 points on the Dow. The compelling, long-term growth
potential of equities is why we intend to remain committed
stockholders in 1998, investing in shares of strong companies when
they are out of favor in the market."
Global Market
Looking ahead, Putnam Investments says, "Caution is the
watchword. We expect international stock markets to remain
extremely volatile for the next several months. We are taking
advantage of the widespread declines to selectively identify
undervalued stocks. We believe prices fell indiscriminately across
the board in many of these markets and select stocks may now
represent attractive values."
Alliance Capital Management concurs that the increase in global
equity market volatility should continue in 1998, as uncertainty
about prospects for corporate earnings growth rise. Balanced
against this uncertain earnings picture, however, is a benign
outlook for interest rates and inflation in most parts of the
world. With the exception of Asia, the supply and demand factor
for equities looks attractive. On another positive note, Alliance
believes that the Asian difficulties combined with an already
competitive pricing environment for goods and services will keep
global inflation at bay. Central banks in the U.S. and Europe
should remain on hold concerning changes in interest rate policy.
Alliance adds, "We expect little change in long-term interest
rates and little change in foreign exchange rates, the exception
being the Japanese yen, which we expect to weaken somewhat against
the U.S. dollar."
As Morgan Stanley Asset Management looks forward, it sees a
pickup in European growth in 1998 and a broadening of the economic
recovery from the export-led growth to more domestic-based demand.
In Japan, the risks persist with financial sector instability,
weak domestic demand, and the strong impact of the Asian crisis.
With investor confidence shaken by the events in Asia, Morgan
Stanley believes that the most important challenge for 1998 will
be to look beyond the uncertainties created by Asia's financial
woes and "recapture the relatively sound fundamentals that still
underpin the real side of the world growth equation." From a
longer-term perspective, all of the Polaris investment managers
still agree that international investing continues to provide
important diversification that can help enhance returns and reduce
risk in a portfolio consisting of mostly domestic issues.
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IN CONCLUSION
Although there were several bumps along the way, 1997 turned out
to be an impressive year for most investors. Indeed, it was the
unprecedented third year in a row that the S&P 500 Index posted
gains of above 20%. While these record returns have created
windfalls for many investors, the recent market volatility and the
divergence in performance among domestic and international
stocks -- or even large-cap and small-cap stocks -- reminds us
that the market can be equally unforgiving on the downside.
Fortunately, there are many strategies to help you manage
investment risk. Several of the most important are diversification
and active professional management. Regardless of market
conditions, the Polaris money managers can help you diversify your
investments among various investment categories or asset
classes -- a technique which reduces the negative impact that any
one asset class can have on your overall portfolio. Our money
managers are also committed to helping you achieve your long-term
goals by constantly monitoring the ever-changing global markets
and conducting the research necessary to uncover promising
investment opportunities all around the world.
As we enter 1998, we encourage you to meet with your investment
representative to review your portfolio and to make sure your
investment allocations in Polaris continue to meet your financial
needs and goals. In the meantime, we thank you for choosing
Polaris as your retirement savings investment, and we look forward
to reporting to you again at mid-year 1998.
Sincerely,
/s/ ELI BROAD
Eli Broad
Chairman and Chief Executive Officer
Anchor National Life Insurance Company
First SunAmerica Life Insurance Company
January 14, 1998
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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, 1997
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 91.0% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CERTIFICATES OF DEPOSIT -- 5.8%
Rabobank Nederland N. V. 6.07% due 3/26/98............................. $ 4,000,000 $ 4,000,098
Rabobank Nederland N. V. 6.20% due 4/09/98............................. 1,000,000 1,000,522
Sanwa Bank Ltd. 5.72% due 1/20/98...................................... 4,000,000 4,000,149
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TOTAL CERTIFICATES OF DEPOSIT (cost $9,000,112)........................ 9,000,769
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COMMERCIAL PAPER -- 58.4%
Accor SA 5.61% due 1/21/98............................................. 5,000,000 4,960,263
Avnet, Inc. 5.70% due 2/13/98.......................................... 3,000,000 2,964,911
Banco Credito Nacional 5.55% due 2/03/98............................... 2,000,000 1,979,804
Bavaria Global Corp. 5.60% due 1/15/98................................. 3,000,000 2,979,000
BTM Capital Corp. 5.65% due 1/26/98.................................... 5,000,000 4,956,056
Certain Funding Corp. 5.66% due 2/12/98................................ 5,000,000 4,941,295
Commed Fuel, Inc. 5.55% due 1/29/98.................................... 5,000,000 4,953,538
Cooperative Association of Tractor Dealers 5.57% due 2/24/98........... 5,000,000 4,932,944
Cregem North America Inc. 5.55% due 1/06/98............................ 4,000,000 3,977,800
Demir Funding Corp. 5.57% due 1/12/98.................................. 3,000,000 2,980,505
First Data Corp. 5.55% due 2/18/98..................................... 5,000,000 4,937,678
Greenwich Asset Funding, Inc. 5.55% due 1/22/98........................ 4,000,000 3,967,933
Guinness PLC 5.58% due 1/21/98......................................... 4,000,000 3,968,380
Merrill Lynch & Co., Inc. 5.58% due 1/08/98............................ 4,000,000 3,976,440
Minmetals Capital & Securities, Inc. 5.59% due 12/08/97................ 3,000,000 2,996,739
Morgan (J.P.) & Co., Inc. 5.57% due 1/30/98............................ 5,000,000 4,952,750
Morgan Stanley Group, Inc. 5.58% due 1/08/98........................... 4,000,000 3,976,440
National City Corp. 5.58% due 1/26/98.................................. 3,000,000 2,973,960
Prospectus Repeat Offering Securitization Entity (ROSE), Inc. 5.65% due
2/06/98.............................................................. 5,000,000 4,947,051
Safeco Corp. 5.62% due 1/15/98......................................... 4,000,000 3,971,900
Transport Adora De Gas 5.62% due 1/22/98............................... 4,000,000 3,967,529
Tribune Co. 5.60% due 2/13/98.......................................... 3,000,000 2,964,665
Working Capital Management Co., L.P. 5.70% due 1/23/98................. 4,000,000 3,966,433
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TOTAL COMMERCIAL PAPER (cost $91,201,451).............................. 91,194,014
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CORPORATE SHORT-TERM NOTES -- 19.2%
American General Finance Corp. 7.25% due 3/01/98....................... 2,000,000 2,006,960
Barnett Banks, Inc. 5.84% due 12/29/97(1).............................. 3,000,000 3,006,270
Bear Stearns Co., Inc. 5.72% due 1/06/98(1)............................ 2,500,000 2,500,000
Bear Stearns Co., Inc. 5.73% due 2/10/98(1)............................ 3,000,000 3,000,000
First Interstate Bancorp 11.00% due 3/05/98............................ 2,630,000 2,663,243
General Motors Acceptance Corp. 5.88% due 2/06/98(1)................... 4,000,000 4,004,800
Lehman Brothers Holdings, Inc. 5.99% due 12/02/97(1)................... 2,000,000 2,002,400
Nationsbank Corp. 6.63% due 1/15/98.................................... 2,705,000 2,707,259
Norwest Corp. 5.75% due 3/15/98........................................ 2,000,000 1,999,700
Sigma Finance Corp. 6.28% due 4/24/98.................................. 4,000,000 4,003,693
USL Capital Corp. 5.86% due 1/06/98(1)................................. 2,000,000 2,002,080
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TOTAL CORPORATE SHORT-TERM NOTES (cost $29,893,381).................... 29,896,405
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MUNICIPAL BONDS -- 7.6%
Illinois Student Assistance Commission 5.63% 12/03/97(1)............... 4,000,000 4,000,000
Illinois Student Assistance Corp. 5.63% 12/03/97(1).................... 3,000,000 3,000,000
</TABLE>
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<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS (continued)
New Hampshire State Industrial Development Authority, Revenue 5.83% due
3/11/98.............................................................. $ 3,000,000 $ 3,000,000
Texas State General Obligation 5.63% 12/03/97(1)....................... 1,875,000 1,875,000
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TOTAL MUNICIPAL BONDS (cost $11,875,000)............................... 11,875,000
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TOTAL SHORT-TERM SECURITIES (cost $141,969,944)........................ 141,966,188
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REPURCHASE AGREEMENT -- 8.5%
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REPURCHASE AGREEMENT -- 8.5%
Joint Repurchase Agreement Account (Note 3) (cost $13,341,000)......... 13,341,000 13,341,000
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TOTAL INVESTMENTS -- (cost $155,310,944) 99.5% 155,307,188
Other assets less liabilities -- 0.5 812,266
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NET ASSETS -- 100.0% $156,119,454
====== =============
</TABLE>
-----------------------------
(1) Variable rate security; maturity date reflects next reset
date; rate as of November 30, 1997.
See Notes to Financial Statements
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SUNAMERICA SERIES TRUST
GLOBAL BOND PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(DENOMINATED IN
FOREIGN BONDS & NOTES -- 65.3% LOCAL CURRENCY) VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRALIAN DOLLAR -- 0.8%
Commonwealth of Australia 10.00% 2006................................ 800,000 $ 680,638
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FRENCH FRANC -- 3.0%
Government of France 4.75% 2002...................................... 16,000,000 2,695,712
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GERMAN MARK -- 13.9%
Republic of Germany 6.00% 2007....................................... 12,700,000 7,473,808
Republic of Germany 6.25% 2024....................................... 5,500,000 3,208,307
Republic of Germany 6.50% 2005....................................... 1,200,000 727,417
Republic of Germany 8.00% 2002....................................... 1,500,000 953,757
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12,363,289
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ITALIAN LIRA -- 10.6%
Republic of Italy 6.75% 2007......................................... 4,700,000,000 2,894,991
Republic of Italy 9.50% 2001......................................... 10,000,000,000 6,520,757
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9,415,748
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JAPANESE YEN -- 7.9%
Asian Development Bank 5.00% 2003.................................... 221,000,000 2,041,165
Asian Development Bank 5.63% 2002.................................... 320,000,000 2,971,205
European Investment Bank 2.13% 2007.................................. 60,000,000 472,568
Republic of Italy 5.13% 2003......................................... 170,000,000 1,590,108
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7,075,046
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NETHERLANDS GUILDER -- 3.4%
Dutch Government 8.25% 2007.......................................... 5,000,000 3,019,172
-----------
NEW ZEALAND DOLLAR -- 4.7%
Federal National Mortgage Association 7.00% 2000..................... 2,200,000 1,352,138
International Bank of Reconstruction & Development 7.00% 2000........ 2,500,000 1,526,951
New Zealand Government 8.00% 2001.................................... 2,000,000 1,273,192
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4,152,281
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POUND STERLING -- 6.5%
United Kingdom Treasury 8.50% 2007................................... 3,000,000 5,749,122
-----------
SPANISH PESETA -- 3.2%
Government of Spain 10.30% 2002...................................... 360,000,000 2,894,172
-----------
SWEDISH KRONA -- 4.4%
Kingdom of Sweden 6.00% 2005......................................... 10,000,000 1,280,800
Kingdom of Sweden 6.50% 2006......................................... 20,000,000 2,643,373
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3,924,173
-----------
</TABLE>
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8
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<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(DENOMINATED IN
FOREIGN BONDS & NOTES (continued) LOCAL CURRENCY) VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES DOLLAR -- 6.9%
Bayerische Landesbank Girozentrale 6.63% 2007........................ $ 3,000,000 $ 3,062,568
International Bank of Reconstruction & Development 6.63% 2006........ 3,000,000 3,103,236
-----------
6,165,804
-----------
TOTAL FOREIGN BONDS & NOTES (cost $58,272,076)....................... 58,135,157
-----------
U.S. GOVERNMENT -- 24.7%
-----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT -- 24.7%
United States Treasury Notes 6.50% 2005.............................. 1,500,000 1,554,135
United States Treasury Notes 6.50% 2006.............................. 6,400,000 6,654,976
United States Treasury Notes 7.00% 2006.............................. 11,300,000 12,119,250
United States Treasury Notes 7.88% 2004.............................. 1,500,000 1,668,045
-----------
21,996,406
-----------
TOTAL U.S. GOVERNMENT (cost $21,435,889)............................. 21,996,406
-----------
TOTAL INVESTMENT SECURITIES (cost $79,707,965)....................... 80,131,563
-----------
SHORT-TERM SECURITIES -- 3.4%
-----------------------------------------------------------------------------------------------------
TIME DEPOSIT -- 3.4%
Cayman Island Time Deposit with State Street Bank & Trust Co. 5.63%
due 12/01/97....................................................... 3,047,000 3,047,000
-----------
TOTAL SHORT-TERM SECURITIES (cost $3,047,000)........................ 3,047,000
-----------
TOTAL INVESTMENTS --
(cost $82,754,965) 93.4% 83,178,563
Other assets less liabilities -- 6.6 5,863,960
----- -----------
NET ASSETS -- 100.0% $89,042,523
===== ===========
</TABLE>
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
<CAPTION>
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*AUD 9,434,250 USD 7,000,591 12/18/97 $ 554,480
*AUD 1,374,648 USD 953,428 12/18/97 14,177
*DEM 4,306,461 USD 2,497,947 01/08/98 49,758
*FIM 9,593,829 DEM 3,196,345 01/09/98 12,456
*JPY 299,313,340 DEM 4,414,000 01/22/98 144,745
DEM 8,328,011 USD 4,858,816 02/23/98 112,802
DEM 189,071 USD 110,065 02/23/98 1,974
FRF 40,466,000 USD 7,027,787 02/24/98 136,913
GBP 7,310,932 USD 12,417,618 01/26/98 104,428
*USD 1,145,937 GBP 687,000 01/26/98 11,120
*USD 6,406,177 GBP 3,840,461 01/26/98 61,990
ITL 1,696,135,000 USD 994,567 02/13/98 13,127
ITL 14,759,821,130 USD 8,765,989 02/13/98 225,464
JPY 1,039,421,163 USD 8,677,136 01/22/98 458,682
JPY 124,698,113 USD 990,985 01/22/98 5,027
NLG 6,174,021 USD 3,148,605 01/14/98 32,306
NZD 9,670,059 USD 6,014,777 12/19/97 52,862
*SEK 20,327,889 USD 2,689,408 12/12/97 55,189
*SEK 2,761,000 USD 364,214 12/12/97 6,426
-----------
2,053,926
-----------
See Notes to Financial Statements
</TABLE>
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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>
*USD 3,391,756 AUD 4,664,516 12/18/97 $ (204,645)
*USD 3,594,157 AUD 5,115,000 12/18/97 (99,247)
CHF 6,128,000 DEM 7,483,209 02/27/98 (75,559)
DEM 7,631,620 CHF 6,128,000 02/27/98 (9,035)
DEM 7,387,924 SEK 31,641,000 12/12/97 (92,827)
IEP 1,452,000 DEM 3,701,584 01/08/98 (50,266)
IEP 1,252,520 DEM 3,182,278 01/08/98 (49,484)
IEP 195,480 DEM 496,891 01/08/98 (7,590)
*DEM 3,874,023 JPY 277,996,000 01/22/98 (6,076)
DEM 5,951,784 USD 3,387,273 02/23/98 (4,569)
ESP 430,336,620 USD 2,820,215 12/11/97 (66,764)
*USD 1,826,005 FIM 9,593,829 01/08/98 (21,260)
*GBP 1,534,000 USD 2,547,844 01/26/98 (35,943)
*USD 164,768 JPY 20,150,825 01/22/98 (5,438)
*USD 2,000,687 JPY 249,435,611 01/22/98 (28,459)
*SEK 6,518,665 USD 840,034 12/12/97 (4,697)
----------
(761,859)
----------
Net Unrealized Appreciation.................... $ 1,292,067
==========
</TABLE>
-----------------------------
* Represents open forward foreign currency contracts and
offsetting or partially offsetting open forward foreign currency
contracts that do not have additional market risk but have
continued counterparty settlement risk.
<TABLE>
<S> <C> <C>
AUD -- Australian Dollar
CHF -- Swiss Franc
DEM -- Deutsche Mark
ESP -- Spanish Peseta
FIM -- Finnish Marke
FRF -- French Franc
GBP -- Pound Sterling
ITL -- Italian Lira
IEP -- Irish Pound
JPY -- Japanese Yen
SEK -- Swedish Krona
NLG -- Netherlands Guilder
NZD -- New Zealand Dollar
USD -- United States Dollar
</TABLE>
See Notes to Financial Statements
- ---------------------
10
<PAGE> 12
- ---------------------
SUNAMERICA SERIES TRUST
CORPORATE BOND PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 95.0% AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 6.5%
Apparel & Textiles -- 1.8%
Collins & Aikman Corp. 11.50% 2006...................................... $ 100,000 $ 113,000
Dyersburg Corp. 9.75% 2007*............................................. 100,000 103,500
GFSI Inc. 9.63% 2007*................................................... 100,000 102,250
Pillowtex Corp. 10.00% 2006............................................. 125,000 131,875
Reliance Industries Ltd. 8.25% 2027*.................................... 500,000 517,450
Westpoint Stevens, Inc. 9.38% 2005...................................... 150,000 156,750
Automotive -- 0.3%
Aftermarket Technology Corp. 12.00% 2004................................ 75,000 82,313
Exide Corp. 10.00% 2005................................................. 50,000 52,250
Lear Corp. 9.50% 2006................................................... 50,000 54,500
Housing -- 0.2%
Falcon Building Products, Inc. zero coupon 2007(1)...................... 100,000 65,500
Syratech Corp. 11.00% 2007.............................................. 50,000 46,750
Retail -- 4.2%
Brylane Capital Corp. 10.00% 2003....................................... 250,000 265,000
Harcourt General, Inc. 7.20% 2027....................................... 750,000 749,865
Jitney Jungle Stores of America, Inc. 10.38% 2007*...................... 50,000 51,750
Leslie's Poolmart, Inc. 10.38% 2004*.................................... 50,000 51,625
Penney (J.C.) Co., Inc. 7.65% 2016...................................... 500,000 537,315
ShopKo Stores, Inc. 9.25% 2022.......................................... 750,000 887,962
Stater Brothers Holdings, Inc. 9.00% 2004*.............................. 100,000 104,000
-------------
4,073,655
-------------
CONSUMER STAPLES -- 2.9%
Food, Beverage & Tobacco -- 1.9%
Ameriserve Food Distribution, Inc. 10.13% 2007*......................... 100,000 104,000
Aurora Foods Inc. 9.88% 2007............................................ 50,000 52,125
Carr Gottstein Foods Co. 12.00% 2005.................................... 100,000 110,500
Di Giorgio Corp. 10.00% 2007............................................ 100,000 99,000
International Home Foods, Inc. 10.38% 2006.............................. 100,000 106,000
Philip Morris Cos, Inc. 7.75% 2027...................................... 500,000 531,325
Ralphs Grocery Co. 10.45% 2004.......................................... 150,000 168,938
Household Products -- 1.0%
NBTY, Inc. 8.63% 2007*.................................................. 100,000 97,250
Playtex Family Products Corp. 9.00% 2003................................ 100,000 101,000
Polymer Group, Inc. 9.00% 2007.......................................... 150,000 148,125
Renaissance Cosmetics 11.75% 2004*...................................... 50,000 45,500
Revlon Consumer Products Corp. 10.50% 2003.............................. 100,000 105,500
Simmons Co. 10.75% 2006................................................. 100,000 105,250
-------------
1,774,513
-------------
EDUCATION -- 0.9%
University -- 0.9%
Boston University 7.63% 2097............................................ 500,000 540,675
-------------
</TABLE>
---------------------
11
<PAGE> 13
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY -- 6.4%
Energy Services -- 2.2%
Coastal Corp. 9.75% 2003................................................ $ 250,000 $ 286,893
Dailey International, Inc. 9.75% 2007*.................................. 100,000 104,500
Enersis SA 7.40% 2016................................................... 600,000 596,058
Pride Petroleum Services, Inc. 9.38% 2007............................... 100,000 107,000
Tosco Corp. 7.00% 2000.................................................. 250,000 253,835
Energy Sources -- 4.2%
Abraxas Petroleum Corp. 11.50% 2004..................................... 75,000 81,000
Anker Coal Group, Inc. 9.75% 2007*...................................... 100,000 100,750
Clark Oil & Refining Corp. 10.50% 2001.................................. 750,000 781,875
Di Industries, Inc. 8.88% 2007.......................................... 50,000 51,500
Forcenergy, Inc. 9.50% 2006............................................. 50,000 52,625
Husky Oil Ltd. 7.13% 2006............................................... 500,000 502,135
Petsec Energy, Inc. 9.50% 2007*......................................... 50,000 51,688
Sun Co., Inc. 9.00% 2024................................................ 750,000 889,147
United Meridian Corp. 10.38% 2005....................................... 75,000 81,937
XCL Ltd. 13.50% 2004(1)(2).............................................. 50,000 60,000
-------------
4,000,943
-------------
FINANCE -- 23.9%
Banks -- 6.1%
ABN Amro Holdings NV 7.30% 2026......................................... 500,000 503,580
African Development Bank 6.88% 2015..................................... 500,000 511,980
Continental Bank NA 12.50% 2001(1)...................................... 300,000 353,535
First Nationwide Holdings, Inc. 10.63% 2003............................. 200,000 224,500
Firstbank Puerto Rico 7.63% 2005........................................ 750,000 769,575
National Bank of Canada 8.13% 2004...................................... 750,000 807,653
Security Pacific Corp. 11.50% 2000...................................... 275,000 312,451
Signet Banking Corp. 9.63% 1999......................................... 300,000 313,800
Financial Services -- 14.2%
Allmerica Financial Corp. 7.63% 2025.................................... 500,000 523,590
American General Corp. 9.63% 2018....................................... 500,000 525,180
Arvin Capital I 9.50% 2027.............................................. 500,000 548,780
Case Equipment Loan Trust 7.30% 2002.................................... 82,742 83,263
Chevy Chase Auto Receivables 5.80% 2002................................. 66,858 66,649
CNA Financial Corp. 7.25% 2023.......................................... 500,000 493,620
ContiFinancial Corp. 8.38% 2003......................................... 100,000 103,750
Continental Corp. 8.25% 1999............................................ 100,000 102,465
Continental Global Group, Inc. 11.00% 2007.............................. 150,000 161,250
Delphi Funding L L C 9.31% 2027......................................... 800,000 888,104
Ford Capital BV 9.38% 2001.............................................. 600,000 654,864
Ford Capital BV 9.50% 2001.............................................. 200,000 219,674
General Motors Acceptance Corp. 5.63% 2001.............................. 300,000 293,751
Green Tree Financial Corp. 10.25% 2002.................................. 450,000 510,741
Green Tree Financial Corp. 6.50% 2002................................... 300,000 300,315
Hutchinson Whampoa Finance Ltd. 7.50% 2027*............................. 500,000 472,355
Lehman Brothers, Inc. 7.38% 2007........................................ 575,000 591,664
Navistar Financial 6.55% 2001........................................... 77,353 77,643
Outsourcing Solutions, Inc. 11.00% 2006*................................ 50,000 55,500
Premier Auto Trust 4.90% 1998........................................... 12,301 12,266
Premier Auto Trust 7.90% 1999........................................... 5,933 5,933
Reinsurance Group America, Inc. 7.25% 2006*............................. 500,000 517,955
Resolution Funding Corp. zero coupon 2021............................... 640,000 150,982
</TABLE>
- ---------------------
12
<PAGE> 14
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Salomon, Inc. 7.20% 2004................................................ $ 525,000 $ 540,435
Susa Partnership LP 8.20% 2017.......................................... 250,000 271,478
Swedish Export Credit Corp. 9.88% 2038.................................. 500,000 524,760
Tanger Properties Ltd. 8.75% 2001....................................... 85,000 87,444
Trizec Finance Corp., Ltd. 10.88% 2005.................................. 67,000 75,207
Insurance -- 3.6%
Conseco Inc. 10.50% 2004................................................ 750,000 894,135
Life Re Capital Trust I 8.72% 2027*..................................... 500,000 536,290
USF&G Capital II 8.47% 2027............................................. 500,000 526,875
USF&G Capital III 8.31% 2046*........................................... 250,000 266,750
-------------
14,880,742
-------------
HEALTHCARE -- 0.9%
Health Services -- 0.7%
Genesis Health Ventures, Inc. 9.25% 2006................................ 50,000.... 50,625
Genesis Health Ventures, Inc. 9.75% 2005................................ 50,000 51,625
Tenet Healthcare Corp. 8.00% 2005....................................... 250,000 252,500
Tenet Healthcare Corp. 10.13% 2005...................................... 100,000 108,500
Medical Products & Services -- 0.2%
Dade International, Inc. 11.13% 2006*................................... 100,000 111,750
-------------
575,000
-------------
INDUSTRIAL & COMMERCIAL -- 7.9%
Business Services -- 3.0%
Allied Waste Industries, Inc. zero coupon 2007*......................... 50,000 34,375
Allied Waste North America, Inc. 10.25% 2006*........................... 100,000 109,000
Coinmach Corp. 11.75% 2005*............................................. 50,000 55,125
Glenoit Corp. 11.00% 2007*.............................................. 50,000 53,625
Knoll, Inc. 10.88% 2006................................................. 65,000 72,150
National Equipment Services, Inc. 10.00% 2004*.......................... 50,000 49,188
Roller Bearing Co. America, Inc. 9.63% 2007*............................ 50,000 50,625
Statia Terminals International 11.75% 2003.............................. 50,000 53,250
Tokheim Corp. 11.50% 2006............................................... 50,000 57,000
United Stationers Supply Co. 12.75% 2005................................ 33,000 36,713
USA Waste Service, Inc. 7.13% 2007...................................... 750,000 767,820
Waste Management, Inc. 8.75% 2018....................................... 500,000 537,980
Electrical Equipment -- 0.1%
Amphenol Corp. 9.88% 2007............................................... 50,000 52,625
Machinery -- 0.5%
Alvey Systems, Inc. 11.38% 2003......................................... 100,000 106,000
CLARK Material Handling Co. 10.75% 2006................................. 100,000 105,500
Neenah Corp. 11.13% 2007*............................................... 50,000 54,124
Werner Holdings Co., Inc. 10.00% 2007*.................................. 50,000 50,875
Multi-Industry -- 1.1%
EnviroSource, Inc. 9.75% 2003........................................... 50,000 50,500
Four M Corp. 12.00% 2006................................................ 50,000 53,250
News America Holdings, Inc. 10.13% 2012................................. 500,000 579,010
Transportation -- 3.2%
Allied Holdings, Inc. 8.63% 2007*....................................... 50,000 51,125
Ameritruck Distribution Corp. 12.25% 2005............................... 100,000 104,000
Chemical Leaman Corp. 10.38% 2005....................................... 50,000 51,875
Continental Airlines, Inc. 6.90% 2018(3)................................ 500,000 503,750
</TABLE>
---------------------
13
<PAGE> 15
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Transportation (continued)
Gearbulk Holdings Ltd. 11.25% 2004...................................... $ 100,000 $ 111,000
Johnstown America Industries, Inc. 11.75% 2005*......................... 50,000 54,125
Stena AB 8.75% 2007..................................................... 50,000 49,875
Stena AB 10.50% 2005.................................................... 100,000 108,125
Transport Ocean Container Corp. 12.25% 2004............................. 850,000 993,437
-------------
4,956,047
-------------
INFORMATION & ENTERTAINMENT -- 13.1%
Broadcasting & Media -- 11.4%
Acme Television LLC zero coupon 2004*(4)................................ 75,000.... 55,125
Affiliated Newspapers Investments, Inc. zero coupon 2006(1)(4).......... 100,000 91,500
Bell Cablemedia PLC zero coupon 2004(4)................................. 75,000 69,675
Cablevision Systems Corp. 9.25% 2005.................................... 150,000 157,500
Chancellor Media Corp. 8.75% 2007*...................................... 50,000 51,000
Chancellor Media Corp. 9.38% 2004....................................... 100,000 104,250
Comcast Cable Communications 8.50% 2027*................................ 500,000 569,370
Comcast Cellular Holdings, Inc. 9.50% 2007.............................. 50,000 51,750
Comcast Corp. 9.38% 2005................................................ 100,000 106,967
Comcast UK Cable Partners Ltd. zero coupon 2007(4)...................... 175,000 139,563
Continental Cablevision, Inc. 9.50% 2013................................ 750,000 863,107
Dialog Corp. 11.00% 2007*............................................... 75,000 75,938
Diamond Cable PLC zero coupon 2007*(4).................................. 100,000 65,500
Echostar Satellite Broadcasting Corp. zero coupon 2004(4)............... 150,000 123,750
Fox/Liberty Networks LLC zero coupon 2007*(4)........................... 200,000 125,500
Garden State Newspapers, Inc. 8.75% 2009*............................... 50,000 49,875
Heritage Media Corp. 8.75% 2006*........................................ 100,000 106,375
Hollinger International Publishing, Inc. 9.25% 2007..................... 75,000 77,250
Katz Media Corp. 10.50% 2007............................................ 100,000 110,250
Lenfest Communications, Inc. 8.38% 2005................................. 100,000 100,500
Millicom International Cellular zero coupon 2006(4)..................... 100,000 73,000
Nextel Communications, Inc. zero coupon 2004(4)......................... 125,000 107,812
Outdoor Systems, Inc. 8.88% 2007........................................ 100,000 103,250
Paging Network, Inc. 10.00% 2008........................................ 100,000 102,750
Paramount Communications, Inc. 8.25% 2022............................... 500,000 497,915
Rogers Cablesystems Ltd. 10.00% 2007.................................... 100,000 109,000
Rogers Cablesystems Ltd. Class B 10.00% 2005............................ 50,000 54,750
Sci Television, Inc. 11.00% 2005........................................ 475,000 492,960
SFX Broadcasting, Inc. 10.75% 2006...................................... 50,000 54,500
Sinclair Broadcast Group, Inc. 9.00% 2007*.............................. 50,000 50,187
Sinclair Broadcast Group, Inc. 10.00% 2005.............................. 50,000 52,750
Sullivan Braodcasting 10.25% 2005....................................... 100,000 106,750
Telesystem International Wireless, Inc. zero coupon 2007*(4)............ 100,000 59,875
Telewest Communications PLC zero coupon 2007(4)......................... 300,000 228,750
Teligent, Inc. 11.50% 2007.............................................. 50,000 50,375
TKR Cable, Inc. 10.50% 2007............................................. 750,000 840,068
UIH Australia Pacific, Inc. zero coupon 2006(4)......................... 100,000 65,000
Valassis Inserts, Inc. 9.38% 1999....................................... 750,000 769,912
Viacom, Inc. 8.00% 2006................................................. 200,000 198,548
Entertainment Products -- 0.1%
Cobblestone Golf Group, Inc. 11.50% 2003................................ 50,000 53,750
Leisure & Tourism -- 1.6%
AMF Group, Inc., zero coupon 2006(4).................................... 122,000 92,720
Courtyard Marriott Ltd. 10.75% 2008..................................... 50,000 54,438
Livent, Inc. 9.38% 2004*................................................ 50,000 49,625
</TABLE>
- ---------------------
14
<PAGE> 16
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT (continued)
Leisure & Tourism (continued)
Premier Parks, Inc. 12.00% 2003......................................... $ 100,000 $ 110,875
Six Flags Theme Parks, Inc. zero coupon 2005(4)......................... 125,000 132,812
Southwest Airlines Co. 7.38% 2027....................................... 500,000 522,460
-------------
8,129,577
-------------
INFORMATION TECHNOLOGY -- 5.8%
Communication Equipment -- 0.1%
Elgin National Industries, Inc. 11.00% 2007*............................ 75,000 76,500
Computers & Business Equipment -- 0.9%
Harris Corp. 10.38% 2018................................................ 500,000 541,205
Electronics -- 1.7%
Advanced Micro Devices, Inc. 11.00% 2003................................ 50,000 53,000
Decisionone Corp. 9.75% 2007*........................................... 50,000 52,250
Fairchild Semiconductor Corp. 10.13% 2007............................... 100,000 104,500
Figgie International, Inc. Delaware 9.88% 1999.......................... 750,000 781,875
Viasystems Group, Inc. 9.75% 2007*...................................... 50,000 51,625
Telecommunications -- 3.1%
American Communications Services, Inc. 13.75% 2007*..................... 50,000 57,375
Anixter, Inc. 8.00% 2003................................................ 500,000 523,725
Brooks Fiber Properties, Inc. zero coupon 2006(4)....................... 100,000 82,125
Brooks Fiber Properties, Inc. zero coupon 2006(4)....................... 100,000 79,250
Call-Net Enterprises, Inc. zero coupon 2007(4).......................... 100,000 67,125
Charter Communications South East LP 11.25% 2006........................ 50,000 55,500
Frontiervision Holdings LP zero coupon 2007*(4)......................... 100,000 69,750
Hermes Europe Railtel BV 11.50% 2007*................................... 50,000 54,375
Highwaymaster Communciations 13.75% 2005*(1)............................ 50,000 50,250
Intermedia Communications, Inc. zero coupon 2006(4)..................... 100,000 77,500
Intermedia Communications, Inc. zero coupon 2007(4)..................... 50,000 34,250
International CableTel, Inc. zero coupon 2006(4)........................ 150,000 113,250
McLeod USA, Inc. zero coupon 2007(4).................................... 150,000 102,750
Metronet Communications Corp. 12.00% 2007(1)............................ 50,000 56,875
PanAmSat Corp. 12.75% 2005.............................................. 119,000 144,213
Qwest Communications International, Inc. 10.88% 2007*................... 100,000 112,500
RCN Corp. 11.13% 2007*(4)............................................... 50,000 28,938
Teleport Communications Group zero coupon 2007(4)....................... 150,000 118,875
Vanguard Cellular Systems, Inc. 9.38% 2006.............................. 100,000 103,000
-------------
3,592,581
-------------
MATERIALS -- 9.8%
Chemicals -- 0.2%
Climachem, Inc. 10.75% 2007............................................. 50,000 50,250
ISP Holdings, Inc. 9.75% 2002........................................... 50,000 52,625
Forest Products -- 4.2%
Buckeye Cellulose Corp. 9.25% 2008...................................... 125,000 131,875
Donohue Forest Products, Inc. 7.63% 2007................................ 750,000 787,500
Pope & Talbot, Inc. 8.38% 2013.......................................... 250,000 252,295
Repap Wisconsin, Inc. 9.25% 2002........................................ 500,000 535,570
Repap Wisconsin, Inc. 9.88% 2006........................................ 750,000 824,737
Stone Container Corp. 11.50% 2004....................................... 50,000 54,000
Metals & Minerals -- 5.4%
Acme Metals, Inc. 13.50% 2004(2)........................................ 50,000 58,000
Barrick Gold Finance, Inc. 7.50% 2007................................... 750,000 785,513
</TABLE>
---------------------
15
<PAGE> 17
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Metals & Minerals (continued)
Echo Bay Mines Ltd. 11.00% 2027......................................... $ 50,000 $ 38,625
Euramax International PLC 11.25% 2006................................... 50,000 53,875
GS Technologies, Inc. 12.25% 2005....................................... 100,000 111,000
Inco Ltd. 9.60% 2022.................................................... 750,000 858,593
MMI Products, Inc. 11.25% 2007*......................................... 50,000 53,875
Placer Dome, Inc. 8.50% 2045............................................ 750,000 762,187
Ryderson Tull, Inc. 9.13% 2006.......................................... 100,000 107,000
Southdown, Inc. 10.00% 2006............................................. 500,000 555,000
-------------
6,072,520
-------------
MUNICIPAL BONDS -- 1.2%
Municipal Bonds -- 1.2%
Atlanta & Fulton County Georgia Recreation 7.00% 2028................... 500,000 495,615
McKeesport Pennsylvania 7.30% 2020...................................... 250,000 254,253
-------------
749,868
-------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 2.9%
Foreign Government -- 2.9%
Province of Quebec 13.25% 2014.......................................... 890,000 1,030,326
Republic of Columbia 7.25% 2003......................................... 250,000 243,445
Republic of South Africa 9.63% 1999..................................... 500,000 522,825
-------------
1,796,596
-------------
REAL ESTATE -- 1.6%
Real Estate Companies -- 0.1%
AEI Holdings, Inc. 10.00% 2007*......................................... 50,000 50,750
Real Estate Investment Trusts -- 1.5%
Chelsea GCA Realty, Inc. 7.75% 2001..................................... 150,000 154,556
Price REIT, Inc. 7.50% 2006............................................. 750,000 784,170
-------------
989,476
-------------
U.S. GOVERNMENT & AGENCIES -- 8.5%
U.S. Government & Agencies -- 8.5%
Federal National Mortgage Association 6.50% 2011........................ 1,365,477 1,362,910
Federal National Mortgage Association 8.50% 2005........................ 750,000 785,153
Government National Mortgage Association 8.00% 2026..................... 1,392,271 1,439,691
United States Treasury Bonds 6.00% 2026................................. 1,750,000 1,722,385
-------------
5,310,139
-------------
UTILITIES -- 2.7%
Electric Utilities -- 2.7%
California Energy, Inc. 10.25% 2004(2).................................. 750,000 819,450
Israel Electric Corp. Ltd. 7.88% 2026*.................................. 350,000 368,939
Tenaga Nasional Berhad 7.50% 2096*...................................... 500,000 519,195
-------------
1,707,584
-------------
TOTAL BONDS & NOTES (cost $57,362,410).................................. 59,149,916
-------------
</TABLE>
- ---------------------
16
<PAGE> 18
<TABLE>
<S> <C> <C>
COMMON STOCK -- 0.0% SHARES VALUE
---------------------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 0.0%
Broadcasting & Media -- 0.0%
Nextel Communications, Inc., Class A+ (cost $2,485)..................... $ 154 $ 3,889
-------------
PREFERRED STOCK -- 1.9%
---------------------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 0.9%
Broadcasting & Media -- 0.9%
American Radio Systems Corp. Series B 11.38%............................ 1,053 124,219
Capstar Broadcasting Partners 12.00%.................................... 500 56,875
Pegasus Communications Corp. 12.75%..................................... 105 117,094
Primedia, Inc. 9.25%*................................................... 1,250 125,937
SFX Broadcasting, Inc. 12.63%........................................... 500 59,250
Sinclair Capital 11.63%*................................................ 500 55,375
-------------
538,750
-------------
INFORMATION TECHNOLOGY -- 0.1%
Computers & Business Equipment -- 0.1%
Microsoft Corp. $2.1960................................................. 1,000 88,562
REAL ESTATE -- 0.9%
Real Estate Investment Trusts -- 0.9%
Crown American Realty Trust 11.00%...................................... 1,000 52,875
Highwood Properties Inc. 8.63%.......................................... 500 532,875
-------------
585,750
-------------
TOTAL PREFERRED STOCK (cost $1,125,654)................................. 1,213,062
-------------
WARRANTS -- 0.0%+
<CAPTION>
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 0.0%
Broadcasting & Media -- 0.0%
Australis Holdings Property Ltd. 10/30/01............................... 50 0
Pegasus Communications Corp. 1/01/07.................................... 100 1,700
-------------
1,700
-------------
INFORMATION TECHNOLOGY -- 0.0%
Telecommunications -- 0.0%
Highwaymaster Communications, Inc. 1/01/49.............................. 50 88
-------------
TOTAL WARRANTS (cost $1,416)............................................ 1,788
-------------
TOTAL INVESTMENT SECURITIES (cost $58,491,965).......................... 60,368,655
-------------
</TABLE>
---------------------
17
<PAGE> 19
<TABLE>
<S> <C> <C>
PRINCIPAL
SHORT-TERM SECURITIES -- 2.1% AMOUNT VALUE
---------------------------------------------------------------------------------------------------
CORPORATE SHORT-TERM NOTES -- 0.6%
Arkla, Inc. 9.20% due 12/18/97.......................................... $ 65,000 65,075
Time Warner, Inc. 7.45% due 2/1/98...................................... 290,000 290,499
-------------
355,574
-------------
TIME DEPOSIT -- 1.5%
Cayman Island Time Deposit with State Street Bank & Trust Co.
3.00% due 12/1/97..................................................... 932,000 932,000
-------------
TOTAL SHORT-TERM SECURITIES (cost $1,286,580)........................... 1,287,574
-------------
TOTAL INVESTMENTS -- (cost $59,778,545) 99.0% 61,656,229
Other assets less liabilities -- 1.0 615,389
------ ----- ------------
NET ASSETS -- 100.0% $62,271,618
====== ===== ============
</TABLE>
-----------------------------
* Resale restricted to qualified institutional buyers
+ Non-income producing securities
(1) Consists of more than one class of securities traded together
as a unit; generally bonds with attached stocks or warrants
(2) Variable rate security; rate as of November 30, 1997
(3) Fair valued security; see Note 2
(4) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date
See Notes to Financial Statements
- ---------------------
18
<PAGE> 20
- ---------------------
SUNAMERICA SERIES TRUST
HIGH-YIELD BOND PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 85.6% AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 7.8%
Apparel & Textiles -- 3.0%
Dominion Textile USA, Inc. 8.88% 2003................................. $ 2,900,000 $ 2,929,000
Dominion Textile USA, Inc. 9.25% 2006................................. 1,000,000 1,010,000
J Crew Operating Corp. 10.38% 2007*................................... 2,000,000 1,990,000
Housing -- 1.2%
Lifestyle Furnishings International Ltd. 10.88% 2006.................. 2,000,000 2,230,000
Retail -- 3.6%
Commemorative Brands, Inc. 11.00% 2007................................ 1,500,000 1,511,250
Electronic Retailing Systems International, Inc. zero coupon
2004(1)............................................................. 1,500,000 1,035,000
Eye Care Centers of America, Inc. 12.00% 2003......................... 2,000,000 2,155,000
Jitney Jungle Stores of America, Inc. 12.00% 2006..................... 1,500,000 1,695,000
Jumbo Sports, Inc. 4.25% 2000......................................... 1,000,000 641,250
------------
15,196,500
------------
CONSUMER STAPLES -- 4.5%
Food, Beverage & Tobacco -- 1.8%
Specialty Foods Acquisition Corp. Series B zero coupon 2005(1)........ 1,500,000 628,125
Specialty Foods Corp. Series B 11.13% 2002............................ 2,850,000 2,864,250
Household Products -- 2.7%
Drypers Corp. Series B 10.25% 2007.................................... 1,000,000 1,010,000
French Fragrances, Inc. Series B 10.38% 2007.......................... 2,250,000 2,362,500
Polymer Group Inc. Series B 9.00% 2007................................ 2,000,000 1,975,000
------------
8,839,875
------------
ENERGY -- 4.8%
Energy Services -- 0.3%
DeepTech International, Inc. 12.00% 2000.............................. 500,000 531,250
Energy Sources -- 4.5%
Clark (R&M), Inc. 8.38% 2007*......................................... 2,250,000 2,250,000
ICO, Inc. Series B 10.38% 2007........................................ 1,250,000 1,340,625
Southwest Royal Ties, Inc. 10.50% 2004*............................... 2,250,000 2,244,375
Statia Terms International Series B 11.75% 2003*...................... 2,000,000 2,130,000
Transamerican Energy Corp. zero coupon 2002*(1)....................... 1,000,000 815,000
------------
9,311,250
------------
FINANCE -- 2.8%
Banks -- 0.7%
Western Financial Savings Bank 8.88% 2007............................. 1,500,000 1,436,250
Financial Services -- 2.1%
Crown Castle International Corp. 10.63% 2007*......................... 500,000 301,875
Dollar Financial Group, Inc. Series A 10.88% 2006..................... 2,000,000 2,140,000
Homeside, Inc. Series B 11.25% 2003................................... 1,299,000 1,545,810
------------
5,423,935
------------
HEALTHCARE -- 4.9%
Health Services -- 4.9%
Abbey Healthcare Group, Inc. 9.50% 2002............................... 2,000,000 2,070,000
Integrated Health Services, Inc. 9.25% 2008*.......................... 1,000,000 997,500
</TABLE>
---------------------
19
<PAGE> 21
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE (continued)
Health Services (continued)
Signature Brands USA, Inc. 13.00% 2002................................ $ 1,995,000 $ 2,204,475
Tenet Healthcare Corp. 10.13% 2005.................................... 4,000,000 4,340,000
------------
9,611,975
------------
INDUSTRIAL & COMMERCIAL -- 8.5%
Aerospace & Military Technology -- 2.1%
Interlake Corp. 12.13% 2002........................................... 2,000,000 2,090,000
L-3 Communications Corp. 10.38% 2007.................................. 2,000,000 2,160,000
Business Services -- 1.6%
Huntsman Corp. 9.09% 1998*(5)......................................... 1,500,000 1,571,250
W.R. Carpenter North America, Inc. 10.63% 2007*....................... 1,500,000 1,563,750
Multi-Industry -- 1.1%
Golden Ocean Group Ltd. 10.00% 2001(2)................................ 2,500,000 2,150,000
Transportation -- 3.7%
Pegasus Shipping Hellas Ltd. 11.88% 2004*............................. 1,500,000 1,466,250
Stena AB 8.75% 2007................................................... 2,000,000 1,995,000
Stena AB 10.50% 2005.................................................. 2,000,000 2,150,000
Travelcenters America, Inc. 10.25% 2007............................... 1,500,000 1,575,000
------------
16,721,250
------------
INFORMATION & ENTERTAINMENT -- 17.2%
Broadcasting & Media -- 8.2%
Benedek Communications Corp. zero coupon 2006(1)...................... 1,000,000 735,000
Busse Broadcasting Corp. 11.63% 2000.................................. 1,000,000 1,068,750
Falcon Holding Group, L.P. Series B 11.00% 2003(4).................... 1,000,000 1,050,000
Fox Kids Worldwide, Inc. 9.25% 2007*.................................. 2,000,000 1,905,000
Midcom Communications, Inc. 8.25% 2003(6)............................. 1,000,000 160,000
Nextel Communications, Inc. zero coupon 2004(1)....................... 2,500,000 2,156,250
Nextel Communications, Inc. 10.65% 2007*.............................. 1,000,000 607,500
Peoples Choice TV Corp. zero coupon 2004(1)........................... 1,500,000 555,000
Peoples Choice TV Corp. zero coupon 2004(1)(2)........................ 2,000,000 780,000
Radio One, Inc. Series B 7.00% 2004................................... 1,000,000 965,000
Source Media, Inc. 12.00% 2004*....................................... 1,500,000 1,481,250
Spanish Broadcasting Systems, Inc. 12.50% 2002........................ 2,250,000 2,576,250
Young Broadcasting, Inc. Series B 8.75% 2007.......................... 2,000,000 1,950,000
Cable -- 7.1%
Australis Holdings Property Ltd. zero coupon 2002(1).................. 1,750,000 822,483
Comcast UK Cable Partners Ltd. zero coupon 2007(1).................... 1,000,000 797,500
Diamond Cable Communications PLC zero coupon 2007(1).................. 2,000,000 1,310,000
Echostar DBS Corp. 12.50% 2002*....................................... 1,000,000 1,063,750
Echostar Satellite Broadcasting Corp. zero coupon 2004(1)............. 4,250,000 3,506,250
International CableTel, Inc. 7.00% 2008............................... 500,000 490,000
UIH Australia Pacific, Inc. Series B zero coupon 2006(1).............. 1,000,000 650,000
United International Holdings, Inc. zero coupon 1999.................. 5,250,000 4,252,500
Wavetek Corp. 10.13% 2007(3).......................................... 1,000,000 1,025,000
Gaming -- 0.8%
California Hotel Finance Corp. 11.00% 2002............................ 1,500,000 1,561,875
Leisure & Tourism -- 1.1%
HMH Properties, Inc. Series B 9.50% 2005.............................. 2,000,000 2,105,000
------------
33,574,358
------------
</TABLE>
- ---------------------
20
<PAGE> 22
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY -- 23.8%
Cellular -- 8.3%
Cellular Communications International, Inc. zero coupon 2000.......... $ 3,000,000 $ 2,355,000
Centennial Cellular Corp. 8.88% 2001.................................. 2,000,000 2,030,000
Comcast Cellular Holdings, Inc. Series B 9.50% 2007................... 1,500,000 1,552,500
Globalstar L.P. 10.75% 2004*.......................................... 1,500,000 1,458,750
International Wireless Communication zero coupon 2001(3).............. 1,250,000 662,500
Microcell Telecommunications, Inc. Series B zero coupon 2006(1)....... 3,000,000 1,920,000
Occidente Y Caribe Celular SA Series B zero coupon 2004(1)............ 2,000,000 1,519,980
Omnipoint Corp. Series A 11.63% 2006.................................. 2,750,000 2,915,000
Orbcomm Global L.P. 14.00% 2004....................................... 1,750,000 1,859,375
Computers & Business Equipment -- 1.4%
Verio, Inc. 13.50% 2004(2)............................................ 2,250,000 2,700,000
Electronics -- 3.2%
Advanced Micro Devices, Inc. 11.00% 2003.............................. 3,000,000 3,180,000
Details, Inc. 10.00% 2005*............................................ 1,000,000 1,012,500
Hawk Corp. Series B 10.25% 2003....................................... 2,000,000 2,120,000
Telecommunications -- 10.9%
Colt Telecommunications Group PLC zero coupon 2006(1)(2).............. 2,000,000 1,540,000
Econophone, Inc. 13.50% 2007(2)....................................... 1,000,000 1,065,000
GST USA, Inc. zero coupon 2005(1)..................................... 2,500,000 1,815,625
Hermes Europe Railtel BV 11.50% 2007*................................. 1,500,000 1,631,250
International Logistics Ltd. 9.75% 2007*.............................. 2,000,000 1,985,000
Ionica PLC zero coupon 2007(1)(2)..................................... 5,750,000 2,350,312
IXC Communications, Inc. Series B 12.50% 2005......................... 2,000,000 2,280,000
NTL, Inc. Series B 10.00% 2007........................................ 1,500,000 1,571,250
Poland Telecom Fin BV 14.00% 2007(2).................................. 1,000,000 1,025,000
RCN Corp. 10.00% 2007*................................................ 1,500,000 1,500,000
Transtel Pass Through Trust 12.50% 2007*.............................. 1,500,000 1,417,500
USN Communications, Inc. 14.63% 2004(2)*.............................. 2,250,000 1,687,500
Viatel, Inc. 15.00% 2005(1)........................................... 2,000,000 1,505,000
------------
46,659,042
------------
MATERIALS -- 8.8%
Chemicals -- 1.5%
NL Industries, Inc. 11.75% 2003....................................... 2,595,000 2,854,500
Forest Products -- 4.8%
Ainsworth Lumber Ltd. 12.50% 2007*(4)................................. 1,750,000 1,763,125
American Pad & Paper Co. Series B 13.00% 2005......................... 650,000 763,750
Doman Industries Ltd. 8.75% 2004...................................... 3,000,000 2,962,500
Florida Coast Paper Co. LLC Series B 12.75% 2003...................... 2,250,000 2,407,500
Stone Container Corp. 11.88% 1998..................................... 1,500,000 1,567,500
Metals & Minerals -- 2.5%
Acme Metals, Inc. 12.50% 2002......................................... 1,500,000 1,650,000
GS Technologies Operating, Inc. 12.00% 2004........................... 1,500,000 1,650,000
Renco Metals, Inc. 11.50% 2003........................................ 1,500,000 1,590,000
------------
17,208,875
------------
UTILITIES -- 2.5%
Telephone -- 2.5%
BTI Telecom Corp. 10.50% 2007*........................................ 1,500,000 1,503,750
Iridium Capital Corp., Series A 13.00% 2005........................... 1,250,000 1,293,750
</TABLE>
---------------------
21
<PAGE> 23
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Telephone (continued)
MGC Communications, Inc. 13.00% 2004*(2).............................. $ 1,000,000 $ 997,500
Primus Telecommunications Group 11.75% 2004........................... 1,000,000 1,065,000
------------
4,860,000
------------
TOTAL BONDS & NOTES (cost $166,458,408)............................... 167,407,060
------------
</TABLE>
<TABLE>
<CAPTION>
COMMON STOCK -- 0.0% SHARES VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 0.0%
Gaming -- 0.0%
Capital Gaming International, Inc.+ (cost $155,541)................... 103 $ 1
-------------
<CAPTION>
PREFERRED STOCK -- 9.2%
---------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 1.0%
Financial Services -- 1.0%
Bankunited Capital Trust Series A 10.25%*............................. 2,000 2,065,000
-------------
HEALTHCARE -- 1.2%
Health Services -- 1.2%
Fresenius Medical Care Capital Trust 9.00%............................ 2,250 2,351,250
-------------
INFORMATION & ENTERTAINMENT -- 3.4%
Broadcasting & Media -- 2.1%
Benedek Communications Corp. 15.00%(3)................................ 11,500 1,437,500
Echostar Communications Corp. Series C 6.75%.......................... 33,000 1,633,500
Echostar Communications Corp. 12.13%*................................. 1,000 1,030,000
Cable -- 1.3%
Cablevision Systems Corp. 11.125%..................................... 22,500 2,565,000
-------------
6,666,000
-------------
INFORMATION TECHNOLOGY -- 2.9%
Telecommunications -- 2.9%
ICG Holdings, Inc. 14.00%............................................. 1,529 1,758,063
Intermedia Communications, Inc. Series B 13.50%(4).................... 1,216 1,447,040
Intermedia Communications, Inc. 7.00%(3)*............................. 40,000 990,000
IXC Communications, Inc. 12.50%*(4)................................... 250 286,250
NTL, Inc. Series B 13.00%............................................. 1,000 1,146,250
-------------
5,627,603
-------------
MATERIALS -- 0.7%
Forest Products -- 0.7%
SDW Holdings Corp. 15.00%(3)*......................................... 37,000 1,382,875
-------------
TOTAL PREFERRED STOCK (cost $17,262,218).............................. 18,092,728
-------------
<CAPTION>
WARRANTS -- 0.4%+
---------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 0.1%
Retail -- 0.1%
Electronic Retailing Systems International, Inc. 2/01/04*............. 1,500 90,000
-------------
INDUSTRIAL & COMMERCIAL -- 0.0%
Multi-Industry -- 0.0%
Golden Ocean Group Ltd. 8/31/01....................................... 2,500 25
-------------
</TABLE>
- ---------------------
22
<PAGE> 24
<TABLE>
<CAPTION>
WARRANTS (continued) SHARES VALUE
---------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 0.0%
Broadcasting & Media -- 0.0%
Benedek Communications Corp. 7/01/07.................................. 12,500 $ 18,750
Cable -- 0.0%
Australis Holdings Property Ltd. 10/30/01*............................ 1,750 0
United International Holdings, Inc. 11/15/99(3)....................... 1,750 13,125
Gaming -- 0.0%
Fitzgerald South, Inc. 3/15/99*....................................... 2,000 20
-------------
31,895
-------------
INFORMATION TECHNOLOGY -- 0.3%
Cellular -- 0.1%
Cellular Communications International, Inc. 8/15/03................... 2,000 20
Clearnet Communications, Inc. 9/15/05................................. 3,300 19,800
International Wireless Communications Holdings, Inc. 8/15/01(3)*...... 1,250 0
Microcell Telecommunications 6/15/06*................................. 8,000 108,000
Microcell Telecommunications 6/15/06(3)............................... 8,000 0
Occidente Y Caribe Celular SA 3/15/04*................................ 8,000 0
Telecommunications -- 0.2%
Colt Telecommunications Group PLC 3/31/98............................. 2,000 20
Hyperion Telecommunications, Inc. 4/01/01*............................ 3,000 179,997
Intermedia Communications, Inc. 6/01/00(3)*........................... 2,500 187,500
Ionica PLC 8/15/06.................................................... 1,000 100,000
-------------
595,337
-------------
UTILITIES -- 0.0%
Telephone -- 0.0%
Primus Telecommunications Group 8/01/04(3)............................ 1,000 10,000
-------------
TOTAL WARRANTS (cost $685,723)........................................ 727,257
-------------
TOTAL INVESTMENT SECURITIES (cost $184,561,890)....................... 186,227,046
-------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 5.9% AMOUNT
---------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 5.9%
Joint Repurchase Agreement Account (Note 3) (cost $11,659,000)........ $11,659,000 11,659,000
-------------
TOTAL INVESTMENTS --
(cost $196,220,890) 101.1% 197,886,046
Liabilities in excess of other assets -- (1.1) (2,247,040)
------ -------------
NET ASSETS -- 100.0% $195,639,006
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
(1) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date
(2) Consists of more than one class of securities traded together
as a unit; generally bonds with attached stocks or warrants
(3) Fair valued security; see Note 2
(4) PIK ("Payment-in-Kind") payment made with additional
securities in lieu of cash
(5) Variable rate security; rate as of November 30, 1997
(6) Bond in default
See Notes to Financial Statements
---------------------
23
<PAGE> 25
- ---------------------
SUNAMERICA SERIES TRUST
WORLDWIDE HIGH INCOME
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 94.1% AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 1.2%
Retail -- 1.2%
Kmart Corp. 7.75% 2012........................................... $ 150,000 $ 144,737
Kmart Corp. 8.38% 2022........................................... 135,000 132,300
Southland Corp. 5.00% 2003....................................... 1,445,000 1,246,313
------------
1,523,350
------------
CONSUMER STAPLES -- 1.2%
Food, Beverage & Tobacco -- 0.8%
Ameriserve Food Distribution, Inc. 8.88% 2006*................... 300,000 300,000
Ameriserve Food Distribution, Inc. 10.13% 2007*.................. 135,000 140,400
Fleming Cos., Inc. 10.50% 2004*.................................. 365,000 385,075
Fleming Cos., Inc. 10.63% 2007*.................................. 120,000 126,900
Household Products -- 0.4%
Revlon Worldwide Parent Corp. zero coupon 2001................... 685,000 474,362
------------
1,426,737
------------
ENERGY -- 1.0%
Energy Services -- 0.2%
EES Coke Battery, Inc. 9.38% 2007*............................... 175,000 183,591
Energy Sources -- 0.8%
Nuevo Energy Co. 9.50% 2006...................................... 375,000 398,438
Synder Oil Corp. 8.75% 2007...................................... 490,000 494,900
Transamerican Energy Corp. zero coupon 2002(2)*.................. 175,000 142,188
------------
1,219,117
------------
FINANCE -- 9.3%
Banks -- 3.5%
Export Credit Bank of Turkey 9.00% 2000.......................... 1,750,000 1,666,875
SBC Agro Finance Bank 10.25% 2000................................ 2,400,000 1,968,000
Western Financial Savings Bank 8.88% 2007........................ 735,000 703,763
Financial Services -- 5.8%
Alps Series 96-1, Class D 12.72% 2006*........................... 149,588 161,313
California FM Lease Trust 8.50% 2017*............................ 244,664 258,120
Criimi Mae, Inc. 9.13% 2002...................................... 300,000 300,375
Dillon Read Structured Finance Corp. Series 1993 Class A 6.66%
2010........................................................... 90,902 82,670
Dillon Read Structured Finance Corp. Series 1994 Class A 7.60%
2007........................................................... 273,484 267,361
Dillon Read Structured Finance Corp. Series 1994 Class A 8.38%
2015........................................................... 625,000 611,913
FMAC Loan Receivables Trust Class C 7.93% 2018*.................. 147,489 130,787
Fox/Liberty Networks LLC 8.88% 2007.............................. 160,000 159,200
Fox/Liberty Networks LLC zero coupon 2007........................ 2,300,000 1,443,250
Long Beach Acceptance Auto Grantor Trust Series 1997-1 Class B
14.22% 2003.................................................... 500,000 499,760
Navistar Financial Corp. 9.00% 2002.............................. 105,000 108,675
OHA Auto Grantor Trust 11.00% 2004*.............................. 1,000,000 1,001,559
Securitized Multiple Asset Series 1997-5 Class A1 7.72% 2005*.... 543,661 544,665
Unexim International Finance Bank 9.88% 2000*.................... 2,100,000 1,701,000
------------
11,609,286
------------
</TABLE>
- ---------------------
24
<PAGE> 26
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 2.8%
Health Services -- 2.6%
Integrated Health Services, Inc. 9.50% 2007*..................... $ 1,095,000 $ 1,105,950
Tenet Healthcare Corp. 8.63% 2007................................ 745,000 761,762
Vencor, Inc. 8.63% 2007*......................................... 1,395,000 1,374,075
Medical Products -- 0.2%
Kinetic Concepts, Inc. 9.63% 2007*............................... 300,000 302,250
------------
3,544,037
------------
INDUSTRIAL & COMMERCIAL -- 3.3%
Aerospace & Military Technology -- 0.3%
Jet Equipment Trust 11.79% 2013*................................. 300,000 399,117
Business Services -- 0.6%
Norcal Waste Systems, Inc. 13.50% 2005(1)........................ 615,000 707,250
Electrical Equipment -- 2.4%
CSN Iron SA 9.13% 2007........................................... 2,100,000 1,800,750
Horseshoe Gaming LLC 9.38% 2007.................................. 1,220,000 1,262,700
------------
4,169,817
------------
INFORMATION & ENTERTAINMENT -- 8.9%
Broadcasting & Media -- 5.5%
Big Flower Press Holdings, Inc. 8.88% 2007....................... 500,000 505,000
Grupo Televisa SA de CV zero coupon 2008(2)...................... 950,000 722,000
Nextel Communications, Inc. zero coupon 2004(2).................. 955,000 823,688
Outdoor Systems Inc., 8.88% 2007................................. 750,000 774,375
Paramount Communications, Inc. 8.25% 2022........................ 1,375,000 1,377,626
RCN Corp. zero coupon 2007(2)*................................... 900,000 520,875
Sinclair Broadcast Group, Inc. 9.00% 2007........................ 840,000 844,200
TCI Satellite Entertainment, Inc. zero coupon 2007(2)*........... 1,250,000 787,500
Telesystem International Wireless, Inc. zero coupon 2007(2)*..... 1,000,000 542,500
Cable -- 1.1%
Cablevision Systems Corp. 9.88% 2006............................. 525,000 569,625
Rogers Cablesystems Ltd. 10.13% 2012............................. 425,000 459,000
Rogers Cablesystems Ltd. Series B 10.00% 2005.................... 295,000 323,025
Gaming -- 0.9%
Grand Casino, Inc. 10.13% 2003................................... 680,000 722,500
Station Casinos, Inc. 9.75% 2007*................................ 400,000 403,000
Leisure & Tourism -- 1.4%
Host Marriott Corp. Acquisition Properties, Inc. Class B 9.00%
2007........................................................... 555,000 571,650
Host Marriott Travel Plazas Class B 9.50% 2005................... 680,000 717,400
Huntsman Corp. 9.09% 1998(1)*.................................... 440,000 460,900
------------
11,124,864
------------
INFORMATION TECHNOLOGY -- 10.7%
Cellular -- 2.0%
Comcast Cellular Holdings, Inc. 9.50% 2007*...................... 1,035,000 1,078,988
Rogers Cantel, Inc. 8.30% 2007................................... 1,195,000 1,196,494
Rogers Communications, Inc. 8.88% 2007........................... 75,000 75,562
Rogers Communications, Inc. 9.13% 2006........................... 90,000 91,350
Electronics -- 1.0%
Advanced Micro Devices, Inc. 11.00% 2003......................... 1,140,000 1,225,500
</TABLE>
---------------------
25
<PAGE> 27
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Telecommunications -- 7.7%
Brooks Fiber Properties, Inc. zero coupon 2006(2)................ $ 475,000 $ 390,094
Brooks Fiber Properties, Inc. 11.88% 2006(1)*.................... 650,000 515,125
CIA International de Telecommunicaciones 10.38% 2004............. 5,000,000 4,250,000
Comcast Corp. 1.13% 2007......................................... 415,000 267,675
Consorcio Ecuatoriano de Telecomunicaciones 14.00% 2002.......... 1,600,000 1,600,000
Dial Callable Communications, Inc. zero coupon 2004(2)........... 600,000 570,000
Hermes Europe Railtel BV 11.50% 2007............................. 90,000 97,875
Intermedia Communications, Inc. zero coupon 2007(2).............. 400,000 274,000
IXC Communications, Inc. 12.50% 2005............................. 425,000 484,500
Lenfest Communications, Inc. 8.38% 2005.......................... 165,000 165,412
Qwest Communications International, Inc. 10.88% 2007............. 200,000 225,000
Teleport Communications Group zero coupon 2007(2)................ 1,070,000 847,975
------------
13,355,550
------------
MATERIALS -- 2.3%
Chemicals -- 0.9%
ISP Holdings, Inc. Class B 9.00% 2003............................ 1,090,000 1,130,875
Forest Products -- 0.2%
S.D. Warren Co. 12.00% 2004...................................... 265,000 296,800
Metals & Minerals -- 1.2%
Acindar Industria Argentina de Aceros SA 11.66% due 1998......... 1,500,000 1,507,500
------------
2,935,175
------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 46.6%
Foreign Government -- 46.6%
Brazil Credit Linked Note zero coupon 1999(2).................... 4,000,000 3,320,000
Federal Republic of Brazil 4.50% 2014(1)......................... 11,815,850 8,861,888
Federal Repuplic of Brazil 10.13% 2027........................... 1,460,000 1,287,720
Ivory Coast Floating Rate Interest Reduction Bond 2.00%
2049(1)*....................................................... 2,400,000 792,000
Jamaica Government Bonds 9.63% 2002.............................. 1,000,000 945,000
Jamaica Government Bonds 12.00% 1999............................. 2,000,000 2,020,000
Republic of Argentina 6.69% 2005(1).............................. 2,112,000 1,869,120
Repuplic of Argentina 9.75% 2027................................. 1,100,000 1,013,100
Republic of Argentina 11.75% 2007*............................... 3,500,000 3,255,000
Republic of Bulgaria 2.25% 2012(1)............................... 6,000,000 3,547,500
Republic of Bulgaria 6.69% 2011(1)............................... 5,500,000 3,867,188
Republic of Ecuador 6.69% 2015(3)(1)............................. 4,374,240 2,706,561
Republic of Ecuador 6.69% 2015(1)................................ 2,460,510 1,522,440
Republic of Panama 8.88% 2027.................................... 650,000 598,000
Republic of Peru 3.25% 2017(1)*.................................. 4,300,000 2,451,000
Republic of Venezuela 6.75% 2007(1).............................. 5,000,000 4,412,500
Republic of Venezuela 9.25% 2027(1).............................. 5,000,000 4,395,000
Russia Federation Ministry Finance 3.00% 2003 GDR*............... 1,200,000 747,000
Russia Principal Notes zero coupon 1999(3)....................... 7,600,000 4,332,000
United Mexican States 6.25% 2019................................. 3,750,000 3,039,375
United Mexican States 11.38% 2016................................ 3,000,000 3,390,000
------------
58,372,392
------------
UTILITIES -- 1.9%
Electric Utilities -- 1.7%
AES Corp. 8.50% 2007*............................................ 490,000 485,101
Midland Cogeneration 10.33% 2002................................. 260,301 284,181
Midland Funding Corp. 11.75% 2005................................ 40,000 47,821
Mosenergo Finance BV 8.38% 2002*................................. 1,550,000 1,333,000
</TABLE>
- ---------------------
26
<PAGE> 28
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Telephone -- 0.2%
Teligent, Inc. 11.50% 2007....................................... $ 250,000 $ 250,000
------------
2,400,103
------------
LOAN AGREEMENT -- 4.9%
Loan Agreement -- 4.9%
Columbia Hercules 1991 Integrated Loan 7.00% 1997................ 1,350,000 1,269,000
Gabon Loans 6.69% 2004........................................... 2,785,714 2,312,143
Ivory Coast Caisse Autonome zero coupon+......................... DEM 1,445,000 340,048
Morocco Restructing & Consolidating Agreement 5.84% 1998(1)...... 2,000,000 1,680,000
Russian Bank of Foreign Economic Affairs loan zero coupon+....... 600,000 512,400
------------
6,113,591
------------
TOTAL BONDS & NOTES (cost $119,967,539).......................... 117,794,019
------------
<CAPTION>
COMMON STOCK -- 0.0% SHARES
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 0.0%
Broadcasting & Media -- 0.0%
Nextel Communications, Inc., Class A+ (cost $35,613)............. 2,207 55,727
------------
<CAPTION>
PREFERRED STOCK -- 1.5%
--------------------------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 1.5%
Broadcasting & Media -- 1.5%
Time Warner, Inc. Series M 10.25% (cost $1,874,714).............. 1,670 1,907,975
------------
TOTAL INVESTMENT SECURITIES (cost $121,877,866).................. 119,757,721
------------
</TABLE>
---------------------
27
<PAGE> 29
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 6.5% AMOUNT VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 6.5%
Agreement with State Street Bank & Trust Co., bearing interest of
5.00% dated 11/28/97, to be repurchased 12/01/97 in the amount
of $8,100,374 and collateralized by $8,155,000 U.S. Treasury
Notes 6.35% due 4/30/99 approximate aggregate value $8,266,568
(cost $8,097,000).............................................. $ 8,097,000 $ 8,097,000
---------------
TOTAL INVESTMENTS --
(cost $129,974,866) 102.1% 127,854,721
Liabilities in excess of other assets -- (2.1) (2,630,400)
------ --------------
NET ASSETS -- 100.0% $ 125,224,321
====== ==============
</TABLE>
-----------------------------
+ Non-income producing security
* Resale restricted to qualified institutional buyers
(1) Variable rate security; rate as of November 30, 1997
(2) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date
(3) A portion of the coupon interest is received in cash and a
portion is capitalized in the principal of the security
DEM -- Deutsche Mark GDR -- Global Depository
Receipt
Allocation of investments as a percentage of net assets by country
as of November 30, 1997:
<TABLE>
<S> <C>
United States............................................................ 36.5%
Brazil................................................................... 10.8
Argentina................................................................ 9.5
Venezuela................................................................ 7.0
Russia................................................................... 6.6
Bulgaria................................................................. 5.9
Mexico................................................................... 5.7
Ecuador.................................................................. 4.7
Jamaica.................................................................. 2.4
Peru..................................................................... 2.0
Panama................................................................... 1.9
Netherlands.............................................................. 1.9
Gabon.................................................................... 1.9
Canada................................................................... 1.8
Morocco.................................................................. 1.3
Turkey................................................................... 1.3
Ivory Coast.............................................................. 0.9
-----
102.1%
======
</TABLE>
See Notes to Financial Statements
- ---------------------
28
<PAGE> 30
- ---------------------
SUNAMERICA SERIES TRUST
SUNAMERICA BALANCED
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
<TABLE>
<CAPTION>
COMMON STOCK -- 67.9% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 4.0%
Apparel & Textiles -- 0.8%
Gap, Inc............................................................... 7,000 $ 375,813
Housing -- 0.9%
Home Depot, Inc........................................................ 7,500 419,531
Retail -- 2.3%
CVS Corp............................................................... 4,000 265,500
Republic Industries, Inc.+............................................. 5,000 130,312
Wal-Mart Stores, Inc................................................... 10,000 399,375
Woolworth Corp.+....................................................... 10,000 216,250
-------------
1,806,781
-------------
CONSUMER STAPLES -- 2.1%
Food, Beverage & Tobacco -- 1.4%
PepsiCo, Inc........................................................... 5,000 184,375
Philip Morris Cos., Inc................................................ 10,000 435,000
Household Products -- 0.7%
Procter & Gamble Co.................................................... 4,000 305,250
-------------
924,625
-------------
ENERGY -- 6.3%
Energy Services -- 2.1%
ENSCO International, Inc............................................... 6,000 214,500
Halliburton Co......................................................... 6,000 323,625
Schlumberger Ltd....................................................... 5,000 411,563
Energy Sources -- 4.2%
Baker Hughes, Inc...................................................... 6,000 251,250
Chevron Corp........................................................... 5,000 400,937
Mobil Corp............................................................. 4,000 287,750
Noble Affiliates, Inc.................................................. 5,000 185,625
Royal Dutch Petroleum Co. ADR.......................................... 4,000 210,750
Seagull Energy Corp.+.................................................. 10,000 228,125
Texaco, Inc............................................................ 5,000 282,500
-------------
2,796,625
-------------
FINANCE -- 20.3%
Banks -- 10.4%
Ahmanson (H.F.) & Co................................................... 5,000 297,500
Banc One Corp.......................................................... 5,000 256,875
BankAmerica Corp....................................................... 5,000 365,000
BankBoston Corp........................................................ 5,000 445,625
Barnett Banks, Inc..................................................... 3,500 246,312
Chase Manhattan Corp................................................... 4,000 434,500
Citicorp............................................................... 2,000 239,875
First Union Corp....................................................... 6,000 292,500
Fleet Financial Group, Inc............................................. 3,000 198,187
Hibernia Corp., Class A................................................ 20,000 362,500
Mellon Bank Corp....................................................... 3,000 170,063
Summit Bancorp......................................................... 15,000 699,375
Wells Fargo & Co....................................................... 2,000 614,500
</TABLE>
---------------------
29
<PAGE> 31
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services -- 7.6%
American Express Co.................................................... 7,000 $ 552,125
Beneficial Corp........................................................ 3,000 232,875
C.I.T Group, Inc. Class A.............................................. 7,000 212,625
Donaldson, Lufkin & Jenrette, Inc...................................... 4,000 291,500
Household International, Inc........................................... 2,000 252,000
Lehman Brothers Holdings, Inc.......................................... 5,000 252,813
Morgan Stanley, Dean Witter, Discover & Co............................. 5,000 271,563
Providian Financial Corp............................................... 7,000 308,437
ReliaStar Financial Corp............................................... 9,300 344,100
Transamerica Corp...................................................... 2,000 217,125
Travelers Group, Inc................................................... 9,000 454,500
Insurance -- 2.3%
Allstate Corp.......................................................... 5,000 429,375
Conseco, Inc........................................................... 8,000 372,500
St. Paul Co., Inc...................................................... 3,000 240,000
-------------
9,054,350
-------------
HEALTHCARE -- 10.0%
Drugs -- 7.9%
Amgen, Inc.+........................................................... 4,000 204,500
Biogen, Inc.+.......................................................... 3,000 105,000
Bristol-Myers Squibb Co................................................ 5,000 468,125
IDEC Pharmaceuticals Corp.+............................................ 19,500 681,281
Lilly (Eli) & Co....................................................... 6,000 378,375
Merck & Co., Inc....................................................... 4,000 378,250
Pfizer, Inc............................................................ 7,000 509,250
Schering-Plough Corp................................................... 6,000 376,125
Warner-Lambert Co...................................................... 3,000 419,625
Health Services -- 0.2%
Chiron Corp.+.......................................................... 6,000 109,125
Medical Products -- 1.9%
Johnson & Johnson...................................................... 5,000 314,687
Neurex Corp.+.......................................................... 10,000 156,250
Novartis AG ADR........................................................ 3,000 239,674
US Surgical Corp....................................................... 5,000 131,875
-------------
4,472,142
-------------
INDUSTRIAL & COMMERCIAL -- 4.1%
Aerospace & Military Technology -- 1.5%
AlliedSignal, Inc...................................................... 3,000 111,375
Boeing Co.............................................................. 6,000 318,750
United Technologies Corp............................................... 3,400 254,787
Electrical Equipment -- 1.9%
General Electric Co.................................................... 6,000 442,500
Westinghouse Electric Corp............................................. 13,000 390,000
Machinery -- 0.3%
Deere & Co............................................................. 2,000 109,625
Transportation -- 0.4%
Burlington Northern Santa Fe........................................... 2,000 183,000
-------------
1,810,037
-------------
</TABLE>
- ---------------------
30
<PAGE> 32
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 2.4%
Broadcasting & Media -- 1.0%
AirTouch Communications, Inc.+......................................... 8,000 $ 314,000
Teligent, Inc.......................................................... 5,000 128,125
Leisure & Tourism -- 1.4%
Carnival Corp., Class A................................................ 5,000 270,313
HFS, Inc.+............................................................. 5,000 343,125
-------------
1,055,563
-------------
INFORMATION TECHNOLOGY -- 10.9%
Communication Equipment -- 2.3%
Nokia Corp., Class A ADR............................................... 3,000 249,375
Northern Telecom Ltd................................................... 5,000 449,062
Tellabs, Inc.+......................................................... 6,000 312,000
Computers & Business Equipment -- 2.5%
Compaq Computer Corp................................................... 3,000 187,313
Dell Computer Corp.+................................................... 3,000 252,562
Hewlett-Packard Co..................................................... 4,000 244,250
International Business Machines Corp................................... 4,000 438,250
Electronics -- 2.5%
Intel Corp............................................................. 5,000 388,125
Motorola, Inc.......................................................... 7,000 440,125
Texas Instruments, Inc................................................. 6,000 295,500
Software -- 1.2%
Cisco Systems, Inc.+................................................... 3,000 258,750
Microsoft Corp.+....................................................... 2,000 283,000
Telecommunications -- 2.4%
Lucent Technologies, Inc............................................... 10,000 801,250
Teleport Communications Group Inc., Class A+........................... 5,000 245,000
-------------
4,844,562
-------------
MATERIALS -- 1.9%
Chemicals -- 0.7%
du Pont (E.I.) de Nemours & Co......................................... 5,000 302,813
Forest Products -- 0.9%
Champion International Corp............................................ 8,000 428,500
Metals & Minerals -- 0.3%
Aluminum Co. of America................................................ 2,000 134,500
-------------
865,813
-------------
REAL ESTATE -- 0.7%
Real Estate Companies -- 0.3%
Security Capital Group, Inc., Class B+................................. 5,000 160,625
Real Estate Investment Trusts -- 0.4%
Equity Office Properties Trust......................................... 5,000 162,188
-------------
322,813
-------------
UTILITIES -- 5.2%
Electric Utilities -- 0.5%
CalEnergy Co., Inc.+................................................... 7,000 232,750
Gas & Pipeline Utilities -- 1.0%
Enron Corp............................................................. 10,000 387,500
TransCoastal Marine Services, Inc.+.................................... 2,000 39,000
</TABLE>
---------------------
31
<PAGE> 33
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Telephone -- 3.7%
AT&T Corp.............................................................. 22,000 $ 1,229,250
Bell Atlantic Corp..................................................... 5,000 446,250
-----------
2,334,750
-----------
TOTAL COMMON STOCK (cost $27,039,307).................................. 30,288,061
-----------
PRINCIPAL
BONDS & NOTES -- 26.6% AMOUNT
---------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 1.7%
Automotive -- 1.7%
Chrysler Corp. 7.45% 2027.............................................. $ 750,000 792,578
-----------
FINANCE -- 2.3%
Financial Services -- 2.3%
Morgan Stanley Group, Inc. 6.88% 2007.................................. 1,000,000 1,015,970
-----------
INFORMATION TECHNOLOGY -- 2.2%
Electronics -- 2.2%
Texas Instruments, Inc. 6.13% 2006..................................... 1,000,000 972,930
-----------
U.S. GOVERNMENT -- 20.4%
U.S. Treasury Bonds & Notes -- 20.4%
United States Treasury Bonds 6.63% 2027................................ 1,150,000 1,231,396
United States Treasury Notes 6.00% 2000................................ 1,000,000 1,004,690
United States Treasury Notes 6.13% 2007................................ 3,500,000 3,567,270
United States Treasury Notes 6.25% 2002................................ 2,250,000 2,283,750
United States Treasury Notes 6.38% 2000................................ 1,000,000 1,012,810
-----------
9,099,916
-----------
TOTAL BONDS & NOTES (cost $11,565,014)................................. 11,881,394
-----------
TOTAL INVESTMENT SECURITIES (cost $38,604,321)......................... 42,169,455
-----------
<CAPTION>
REPURCHASE AGREEMENT -- 5.3%
---------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 5.3%
Joint Repurchase Agreement Account (Note 3)
(cost $2,364,000).................................................... 2,364,000 2,364,000
-----------
TOTAL INVESTMENTS --
(cost $40,968,321) 99.8% 44,533,455
Other assets less liabilities -- 0.2 87,701
----- -----------
NET ASSETS -- 100.0% $44,621,156
===== ===========
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
- ---------------------
32
<PAGE> 34
- ---------------------
SUNAMERICA SERIES TRUST
BALANCED/PHOENIX INVESTMENT
COUNSEL PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
<TABLE>
<CAPTION>
COMMON STOCK -- 56.2% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 4.6%
Housing -- 0.9%
Home Depot, Inc...................................................... 14,900 $ 833,469
Retail -- 3.7%
Borders Group, Inc.+................................................. 13,100 374,169
CVS Corp............................................................. 15,200 1,008,900
Rite Aid Corp........................................................ 15,900 1,045,425
Safeway, Inc.+....................................................... 19,300 1,172,475
-----------
4,434,438
-----------
CONSUMER STAPLES -- 3.9%
Food, Beverage & Tobacco -- 1.5%
Philip Morris Cos., Inc.............................................. 33,800 1,470,300
Household Products -- 2.4%
Colgate-Palmolive Co................................................. 8,700 581,269
Gillette Co.......................................................... 12,400 1,144,675
Sunbeam Corp......................................................... 12,200 537,562
-----------
3,733,806
-----------
ENERGY -- 7.2%
Energy Services -- 4.9%
BJ Services Co.+..................................................... 6,600 473,962
Cooper Cameron Corp.+................................................ 3,700 225,469
Diamond Offshore Drilling, Inc....................................... 8,900 443,888
Halliburton Co....................................................... 16,500 889,969
Nabors Industries, Inc.+............................................. 9,300 326,081
Noble Drilling Corp.+................................................ 7,800 234,488
Rowan Cos., Inc.+.................................................... 7,000 238,000
Santa Fe International Corp.+........................................ 7,500 314,531
Schlumberger Ltd..................................................... 12,500 1,028,906
Transocean Offshore, Inc............................................. 10,100 479,119
Energy Sources -- 2.3%
Elf Aquitaine SA ADR................................................. 13,400 767,150
Tosco Corp........................................................... 26,700 869,419
YPF Sociedad Anonima, Class D ADR.................................... 16,900 567,206
-----------
6,858,188
-----------
FINANCE -- 9.9%
Banks -- 4.8%
AmSouth Bancorp...................................................... 3,400 177,013
Banco Rio de La Plata SA, Class B ADR+............................... 18,000 226,125
BankAmerica Corp..................................................... 9,600 700,800
BankBoston Corp...................................................... 9,700 864,512
Citicorp............................................................. 3,600 431,775
Fleet Financial Group, Inc........................................... 600 39,638
Mellon Bank Corp..................................................... 20,000 1,133,750
NationsBank Corp..................................................... 17,400 1,045,087
</TABLE>
---------------------
33
<PAGE> 35
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services -- 3.7%
American Express Co.................................................. 2,500 $ 197,188
Compass Bancshares, Inc.............................................. 2,500 100,000
Franklin Resources, Inc.............................................. 1,100 98,863
Merrill Lynch & Co., Inc............................................. 13,000 912,437
Price (T. Rowe) Associates, Inc...................................... 8,150 529,750
Travelers Group, Inc................................................. 21,750 1,098,375
Washington Mutual Inc................................................ 8,400 580,650
Insurance -- 1.4%
Allstate Corp........................................................ 12,000 1,030,500
Hartford Financial Services Group, Inc............................... 3,600 301,500
-----------
9,467,963
-----------
HEALTHCARE -- 9.3%
Drugs -- 6.7%
Bristol-Myers Squibb Co.............................................. 9,400 880,075
Cardinal Health, Inc................................................. 11,300 855,975
Elan Corp. PLC ADR+.................................................. 5,700 300,675
Lilly (Eli) & Co..................................................... 12,700 800,894
Pfizer, Inc.......................................................... 27,000 1,964,250
Warner-Lambert Co.................................................... 8,100 1,132,987
Watson Pharmaceuticals, Inc.+........................................ 16,900 502,775
Health Services -- 0.6%
HEALTHSOUTH Corp.+................................................... 21,400 561,750
Medical Products -- 2.0%
Centocor, Inc.+...................................................... 9,600 417,600
Guidant Corp......................................................... 14,300 918,775
Medtronic, Inc....................................................... 12,600 601,650
-----------
8,937,406
-----------
INDUSTRIAL & COMMERCIAL -- 3.2%
Electrical Equipment -- 1.2%
General Electric Co.................................................. 16,300 1,202,125
Machinery -- 0.6%
Deere & Co........................................................... 10,400 570,050
Multi-Industry -- 1.2%
Tyco International Ltd............................................... 29,000 1,138,250
Transportation -- 0.2%
Federal Express Corp.+............................................... 2,700 181,069
-----------
3,091,494
-----------
INFORMATION & ENTERTAINMENT -- 2.6%
Broadcasting & Media -- 2.6%
AirTouch Communications, Inc.+....................................... 35,600 1,397,300
Chancellor Media Corp.+.............................................. 3,700 222,231
Liberty Media Group Corp. Class A+................................... 24,900 840,375
-----------
2,459,906
-----------
INFORMATION TECHNOLOGY -- 13.7%
Communication Equipment -- 0.8%
CIENA Corp.+......................................................... 14,900 804,600
Computers & Business Equipment -- 4.7%
EMC Corp.+........................................................... 28,800 873,000
International Business Machines Corp................................. 28,000 3,067,750
Staples, Inc.+....................................................... 21,300 600,394
</TABLE>
- ---------------------
34
<PAGE> 36
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Electronics -- 4.3%
Adaptec, Inc.+....................................................... 16,900 $ 836,550
Linear Technology Corp............................................... 4,200 270,375
National Semiconductor Corp.+........................................ 23,500 778,437
Philips Electronics NV ADR........................................... 24,200 1,621,400
Texas Instruments, Inc............................................... 12,000 591,000
Software -- 3.2%
BMC Software, Inc.+.................................................. 9,000 583,875
Cisco Systems, Inc.+................................................. 8,500 733,125
Compuware Corp.+..................................................... 17,700 618,394
HBO & Co.+........................................................... 19,100 857,112
J.D. Edwards & Co.+.................................................. 2,000 68,500
Yahoo!, Inc.+........................................................ 3,100 158,488
Telecommunications -- 0.7%
Lucent Technologies, Inc............................................. 8,100 649,012
-----------
13,112,012
-----------
MATERIALS -- 0.3%
Chemicals -- 0.3%
Solutia, Inc......................................................... 12,500 285,156
-----------
UTILITIES -- 1.5%
Telephone -- 1.5%
AT&T Corp............................................................ 25,900 1,447,163
-----------
TOTAL COMMON STOCK (cost $49,744,386)................................ 53,827,532
-----------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 32.7% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 4.4%
Financial Services -- 4.4%
Aesop Funding II LLC 6.40% 2003*..................................... $ 600,000 600,096
CS First Boston Mortgage Securities Corp. 7.18% 2027(1).............. 300,000 303,000
DLJ Mortgage Acceptance Corp. 7.58% 2028*............................ 100,000 106,063
Federal National Mortgage Association Remic Trust 6.85% 2020......... 700,000 711,375
First Union-Lehman Brothers Commercial Mortgage Trust 7.43% 2029..... 140,000 146,650
Fleetwood Credit Grantor Trust 6.90% 2012............................ 74,058 74,834
GE Capital Mortgage Services, Inc. 7.25% 2026........................ 296,041 300,166
Green Tree Financial Corp. 7.40% 2027................................ 125,000 128,926
Green Tree Financial Corp. 7.60% 2027................................ 125,000 129,668
Nationslink Funding Corp. 7.69% 2005................................. 250,000 264,102
Residential Asset Securitization Trust 8.00% 2026.................... 205,594 212,179
Residential Funding Mortgage Securities 6.75% 2011................... 279,930 282,336
Residential Funding Mortgage Securities 7.10% 2026................... 200,000 202,622
Residential Funding Mortgage Securities 7.25% 2026................... 295,391 297,976
Structured Asset Securities Corp. 6.95% 2007......................... 140,000 142,625
Structured Asset Securities Corp. 7.00% 2026......................... 300,000 300,562
-----------
4,203,180
-----------
INDUSTRIAL & COMMERCIAL -- 0.4%
Electrical Equipment -- 0.4%
Capital Equipment Resolution 6.45% 2002.............................. 360,000 358,987
-----------
</TABLE>
---------------------
35
<PAGE> 37
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS -- 0.4%
Forest Products -- 0.4%
Buckeye Cellulose Corp. 8.50% 2005................................... $ 300,000 $ 304,500
Buckeye Cellulose Corp. 9.25% 2008................................... 100,000 105,500
-----------
410,000
-----------
MUNICIPAL BONDS -- 2.6%
Municipal Bonds -- 2.6%
California State Department Water Resources 5.00% 2029............... 190,000 182,390
Florida State Department of Transportation 5.00% 2027................ 230,000 219,740
Houston Texas Water & Sewer Systems Revenue 5.00% 2025............... 290,000 277,785
Kern County California Pension Obligation 7.26% 2014................. 220,000 231,563
Long Beach California Pension Obligation 6.87% 2006.................. 30,000 31,093
Massachusetts State Water Resources Authority 5.00% 2024............. 230,000 220,506
Miami Beach Florida Special Obligation 8.60% 2021.................... 430,000 473,714
Newport News 7.05% 2025.............................................. 250,000 251,407
Orange County California Pension Obligation 7.62% 2008............... 160,000 172,791
San Bernardino County California Financing Authority 6.87% 2008...... 15,000 15,491
San Bernardino County California Financing Authority 6.94% 2009...... 35,000 36,329
University Miami Florida Exchange Revenue 7.65% 2020................. 80,000 82,907
Ventura County California Pension 6.54% 2005......................... 30,000 30,127
Washington State General Obligation Series 1997E 5.00% 2022.......... 290,000 279,261
-----------
2,505,104
-----------
NON-U.S. GOVERNMENT OBLIGATIONS -- 1.6%
Foreign Government -- 1.6%
Columbia Republic 7.63% 2007......................................... 300,000 281,042
Compania Sud Americana de Vapores SA 7.38% 2003...................... 50,000 48,300
Federative Republic of Brazil 5.25% 2024(2).......................... 300,000 207,000
Federative Republic of Brazil 6.69% 2024(2).......................... 170,000 133,875
Republic of Argentina 5.50% 2023(2).................................. 475,000 337,250
Republic of Argentina 6.88% 2023(2).................................. 175,000 142,187
United Mexican States 6.25% 2019..................................... 225,000 179,016
United Mexican States 6.62% 2019..................................... 250,000 226,550
-----------
1,555,220
-----------
U.S. GOVERNMENT AND AGENCIES -- 23.3%
U.S. Government & Agencies -- 23.3%
Government National Mortgage Association 6.50% 2023.................. 251,489 248,190
Government National Mortgage Association 6.50% 2026.................. 317,404 312,344
Government National Mortgage Association 6.50% 2026.................. 3,243,779 3,192,073
United States Treasury Bonds 6.00% 2026.............................. 210,000 206,686
United States Treasury Bonds 6.38% 2027.............................. 2,045,000 2,126,473
United States Treasury Notes 5.75% 2000.............................. 350,000 349,342
United States Treasury Notes 5.75% 2002.............................. 4,860,000 4,844,059
United States Treasury Notes 6.00% 2000.............................. 3,500,000 3,516,415
United States Treasury Notes 6.50% 2005.............................. 1,450,000 1,501,881
United States Treasury Notes 6.50% 2006.............................. 3,895,000 4,050,177
United States Treasury Notes 6.75% 2000.............................. 1,200,000 1,224,936
United States Treasury Notes 6.88% 2000.............................. 450,000 460,264
United States Treasury Notes 7.50% 2005.............................. 200,000 218,532
-----------
22,251,372
-----------
TOTAL BONDS & NOTES (cost $30,789,546)............................... 31,283,863
-----------
</TABLE>
- ---------------------
36
<PAGE> 38
<TABLE>
<CAPTION>
PRINCIPAL
RIGHTS -- 0.0%+ AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
NON-U.S. GOVERNMENT OBLIGATIONS -- 0.0%
Foreign Government -- 0.0%
United Mexican States 6/30/03 (cost $0).............................. $ 1,070,000 $ 0
-------------
WARRANTS -- 0.0%+
----------------------------------------------------------------------------------------------------
<S> <C> <C>
NON-U.S. GOVERNMENT OBLIGATIONS -- 0.0%
Foreign Government -- 0.0%
Republic of Venezuela 4/15/20........................................ 535 0
-------------
TOTAL INVESTMENT SECURITIES (cost $80,533,932)....................... 85,111,395
-------------
SHORT-TERM SECURITIES -- 16.0%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 13.5%
AT&T Corp., 5.47% due 12/1/97........................................ 2,805,000 2,805,000
du Pont (E.I.) de Nemours & Co. 5.54% due 12/10/97................... 660,000 659,086
Enterprise Capital Funding Corp. 5.65% due 2/17/98................... 477,000 471,130
General Reinsurance Corp. 5.57% due 12/17/97......................... 844,000 841,911
Heinz (H.J.) Co. 5.52% due 12/11/97.................................. 670,000 668,973
International Lease Finance Corp. 5.52% due 12/2/97.................. 2,145,000 2,144,671
International Lease Finance Corp. 5.74% due 12/2/97.................. 580,000 579,907
Koch Industries 5.53% due 12/1/97.................................... 755,000 755,000
Sara Lee Corp. 5.54% due 12/11/97.................................... 4,000,000 3,993,844
-------------
12,919,522
-------------
FEDERAL AGENCY OBLIGATIONS -- 2.5%
Federal Home Loan Bank Consolidated Discount Note 5.60% due
12/1/97............................................................ 2,400,000 2,400,000
-------------
TOTAL SHORT-TERM SECURITIES (cost $15,319,553)....................... 15,319,522
-------------
TOTAL INVESTMENTS --
(cost $95,853,485) 104.9% 100,430,917
Liabilities in excess of other assets -- (4.9) (4,709,881)
------ -------------
NET ASSETS -- 100.0% $ 95,721,036
====== ==============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
(1) Fair valued security; see Note 2
(2) Variable rate security; rate as of November 30, 1997
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
37
<PAGE> 39
- ---------------------
SUNAMERICA SERIES TRUST
ASSET ALLOCATION PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
<TABLE>
<CAPTION>
COMMON STOCK -- 59.1% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 7.3%
Apparel & Textiles -- 1.4%
Fruit of The Loom, Inc.+............................................ 314,000 $ 7,320,125
Automotive -- 3.3%
Ford Motor Co. ..................................................... 207,000 8,901,000
Goodyear Tire & Rubber Co. ......................................... 137,100 8,320,256
Housing -- 1.6%
Centex Corp. ....................................................... 78,300 4,962,262
Lennar Corp. ....................................................... 161,800 3,377,575
Retail -- 1.0%
Fleming Cos., Inc. ................................................. 254,200 4,226,075
Sears, Roebuck & Co. ............................................... 28,200 1,291,913
------------
38,399,206
------------
CONSUMER STAPLES -- 3.4%
Food, Beverage & Tobacco -- 1.9%
SUPERVALU, Inc. .................................................... 168,800 6,635,950
UST, Inc. .......................................................... 100,200 3,093,675
Household Products -- 1.5%
Sunbeam Corp. ...................................................... 183,900 8,103,094
------------
17,832,719
------------
ENERGY -- 3.1%
Energy Services -- 3.1%
Texaco, Inc. ....................................................... 75,200 4,248,800
Tosco Corp. ........................................................ 370,700 12,070,919
------------
16,319,719
------------
FINANCE -- 15.1%
Banks -- 5.7%
Chase Manhattan Corp. .............................................. 71,200 7,734,100
Fleet Financial Group, Inc. ........................................ 128,600 8,495,638
Republic New York Corp. ............................................ 59,200 6,438,000
Wells Fargo & Co. .................................................. 23,700 7,281,825
Financial Services -- 2.9%
Capital One Financial Corp. ........................................ 81,600 3,697,500
CNA Financial Corp.+................................................ 5,700 698,250
Morgan Stanley, Dean Witter, Discover & Co. ........................ 196,300 10,661,544
Insurance -- 6.5%
Aetna, Inc. ........................................................ 144,300 10,876,612
CIGNA Corp. ........................................................ 79,600 13,313,100
Loews Corp. ........................................................ 73,800 7,832,025
USF & G Corp. ...................................................... 123,600 2,495,175
------------
79,523,769
------------
HEALTHCARE -- 3.5%
Health Services -- 3.5%
Foundation Health Systems, Inc.+.................................... 233,000 6,538,562
Tenet Healthcare Corp.+............................................. 375,700 11,904,994
------------
18,443,556
------------
</TABLE>
- ---------------------
38
<PAGE> 40
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL -- 7.2%
Aerospace & Military Technology -- 5.1%
Boeing Co. ......................................................... 95,550 $ 5,076,094
Lear Corp.+......................................................... 216,700 10,144,269
Lockheed Martin Corp................................................ 118,500 11,561,156
Transportation -- 2.1%
AMR Corp.+.......................................................... 50,400 6,107,850
CNF Transportation, Inc............................................. 114,600 4,985,100
------------
37,874,469
------------
INFORMATION & ENTERTAINMENT -- 2.9%
Leisure & Tourism -- 2.9%
Circus Circus Enterprises, Inc.+.................................... 178,000 3,671,250
Continental Airlines, Inc., Class B+................................ 182,700 8,324,269
Royal Caribbean Cruises Ltd. ....................................... 76,000 3,648,000
------------
15,643,519
------------
INFORMATION TECHNOLOGY -- 6.2%
Communication Equipment -- 1.3%
Bay Networks, Inc.+................................................. 223,600 6,721,975
Computers & Business Equipment -- 2.8%
Quantum Corp.+...................................................... 563,300 14,997,862
Electronics -- 2.1%
Avnet, Inc. ........................................................ 163,100 10,805,375
------------
32,525,212
------------
MATERIALS -- 6.5%
Chemicals -- 1.8%
Union Carbide Corp. ................................................ 218,100 9,623,663
Forest Products -- 2.6%
Georgia-Pacific Corp. .............................................. 102,900 8,785,087
Stone Container Corp. .............................................. 371,800 4,647,500
Metals & Minerals -- 2.1%
AK Steel Holding Corp. ............................................. 317,400 6,248,812
Ispat International NV+............................................. 221,600 5,055,250
------------
34,360,312
------------
REAL ESTATE -- 0.7%
Real Estate Companies -- 0.7%
LNR Property Corp. ................................................. 161,800 3,761,850
------------
UTILITIES -- 3.2%
Electric Utilities -- 3.2%
Northeast Utilities+................................................ 338,800 4,383,225
Unicom Corp. ....................................................... 423,300 12,328,613
------------
16,711,838
------------
TOTAL COMMON STOCK (cost $263,725,553).............................. 311,396,169
------------
</TABLE>
---------------------
39
<PAGE> 41
<TABLE>
<CAPTION>
PREFERRED STOCK -- 0.3% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 0.3%
Broadcasting & Media -- 0.1%
Time Warner, Inc. Series M 10.25%(1)................................ 277 $ 315,780
Leisure & Tourism -- 0.2%
Royal Caribbean Cruises Ltd. Series A 7.25%......................... 16,000 1,240,000
-------------
1,555,780
-------------
TOTAL PREFERRED STOCK (cost $1,080,040)............................. 1,555,780
-------------
PRINCIPAL
BONDS & NOTES -- 34.9% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 0.3%
Automotive -- 0.0%
Chrysler Corp. 7.45% 2097........................................... $ 190,000 198,822
Housing -- 0.2%
United States Home Corp. 7.95% 2001................................. 605,000 611,050
USI American Holdings, Inc. 7.25% 2006.............................. 240,000 239,868
Retail -- 0.1%
Fleming Cos., Inc. 10.63% 2001...................................... 270,000 285,525
Kmart Corp. 7.96% 1999.............................................. 500,000 503,825
-------------
1,839,090
-------------
CONSUMER STAPLES -- 0.4%
Food, Beverage & Tobacco -- 0.4%
Ceval Alimentos 11.13% 2004......................................... 300,000 291,750
Instituto Fomento Industrial 8.38% 2001............................. 10,000 10,255
Instituto Fomento Industrial 8.38% 2001*............................ 80,000 82,040
RJR Nabisco, Inc. 8.00% 2001........................................ 460,000 473,552
RJR Nabisco, Inc. 8.63% 2002........................................ 1,200,000 1,272,108
-------------
2,129,705
-------------
ENERGY -- 0.8%
Energy Services -- 0.7%
CMS Energy Corp. 7.38% 2000(1)...................................... 950,000 946,437
Edison Mission Energy Funding Corp. 6.77% 2003*..................... 241,693 243,310
Global Marine, Inc. 12.75% 1999..................................... 900,000 924,750
National Power 7.63% 2000........................................... 320,000 326,449
Oryx Energy Co. 9.50% 1999.......................................... 910,000 954,490
Oryx Energy Co. 10.00% 2001......................................... 100,000 109,686
YPF Sociedad Anonima 7.50% 2002..................................... 83,046 83,118
Energy Sources -- 0.1%
Triton Energy Ltd. 8.75% 2002....................................... 880,000 917,400
-------------
4,505,640
-------------
FINANCE -- 8.5%
Banks -- 1.5%
Auburn Hills Trust 12.00% 2020...................................... 170,000 267,592
Banco Nacional de Obras y Servicios Publicos SNC 9.63% 2003......... 180,000 182,925
BankAmerica Corp. 9.75% 2000........................................ 400,000 432,032
Capital One Bank 6.60% 2001......................................... 1,870,000 1,879,556
Capital One Bank 6.66% 2000......................................... 150,000 150,191
Capital One Bank 6.75% 2000......................................... 1,000,000 1,003,070
Capital One Bank 6.88% 2000......................................... 850,000 861,075
Capital One Bank 6.90% 1999......................................... 500,000 505,535
Capital One Bank 8.13% 2000......................................... 340,000 351,849
Continental Bank NA 11.25% 2001..................................... 300,000 308,364
</TABLE>
- ---------------------
40
<PAGE> 42
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Banks (continued)
Continental Bank NA 12.50% 2001..................................... $ 450,000 $ 530,302
Security Pacific Corp. 11.50% 2000.................................. 600,000 681,714
Signet Banking Corp. 9.63% 1999..................................... 775,000 810,650
Financial Services -- 6.9%
APP International Finance Co. 10.25% 2000........................... 490,000 492,450
APP International Finance Co. 8.53% 1999(1)(2)...................... 550,000 509,982
APP International Finance Co. 8.87% 1999(2)......................... 300,000 276,000
APP International Finance Co. 10.25% 2000........................... 150,000 149,625
Asset Securitization Corp. 7.49% 2027............................... 1,450,000 1,539,379
Autoflow 1996 A Grantor Trust 7.48% 2002*(1)........................ 1,248,410 1,258,358
Bear Stearns Mortgage Securities, Inc. 6.75% 2008................... 1,000,959 999,269
Case Equipment Loan Trust 7.30% 2002................................ 237,882 239,381
Chevy Chase Auto Receivables 5.80% 2002............................. 152,288 151,811
Conseco Financing Trust I 8.70% 2026................................ 690,000 747,367
Countrywide Capital I 8.05% 2027.................................... 520,000 543,686
Countrywide Funding Corp. 7.73% 2001................................ 300,000 313,515
Countrywide Funding Corp. 8.43% 1999................................ 450,000 468,747
Discover Card Master Trust I 6.04% 2004(2).......................... 300,000 301,968
Discover Card Master Trust I 6.24% 2013(2).......................... 2,000,000 1,998,120
EQCC Home Equity Loan Trust 5.80% 2028(1)........................... 3,503,814 3,498,887
Fasco Grantor Trust 6.65% 2001...................................... 1,054,698 1,061,258
Financiera Energetica Nacional SA 9.38% 2006........................ 150,000 153,938
Fingerhut Financial Services 6.45% 2002............................. 920,000 924,600
First Union-Lehman Brothers Commercial Mortgage Trust 6.60% 2029.... 1,950,000 1,944,501
First Union-Lehman Brothers Commercial Mortgage Trust 7.30% 2029.... 1,050,000 1,092,656
Ford Capital BV 9.50% 2001.......................................... 800,000 878,696
Ford Credit Auto Loan Master Trust 6.50% 2002....................... 550,000 552,403
GE Capital Mortgage Services, Inc. 6.50% 2024(2).................... 637,890 600,414
General Motors Acceptance Corp. 5.63% 2001.......................... 750,000 734,377
Guangdong Enterprises Ltd. 8.88% 2007*.............................. 660,000 649,163
H&T Master Trust 8.00% 2002(1)*..................................... 900,000 898,875
Imperial Credit Capital Trust I zero coupon 2002.................... 205,000 202,438
Indah Kiat International Finance Co BV 11.38% 1999.................. 350,000 354,375
MBNA Master Credit Card Trust II 6.01% 1998(2)...................... 3,200,000 3,189,984
Morgan Stanley Capital I 7.46% 2006(1).............................. 1,400,000 1,458,660
Mortgage Capital Funding, Inc. 7.29% 2007........................... 1,500,000 1,563,516
Nacional Financiera, Inc. 8.59% 1997(2)............................. 600,000 600,750
Nacional Financiera, Inc. 9.00% 1999................................ 50,000 50,625
NWA Trust 8.26% 2006................................................ 244,815 262,329
Premier Auto Trust 4.90% 1998....................................... 537,132 535,617
PXRE Capital Trust I 8.85% 2027*.................................... 265,000 281,229
Sears Credit Account Master Trust 6.20% 2006........................ 700,000 697,809
Sears Credit Account Master Trust 8.10% 2004........................ 700,000 721,651
Standard Credit Card Master Trust 8.25% 2003........................ 1,010,000 1,073,751
Standard Credit Card Master Trust 8.25% 2007........................ 1,610,000 1,762,435
Voto Votorantim Overseas Trading Operations NV 8.50% 2005........... 350,000 311,671
Insurance -- 0.1%
Conseco, Inc. 10.50% 2004........................................... 500,000 596,090
-------------
44,607,211
-------------
HEALTHCARE -- 0.0%
Health Services -- 0.0%
Tenet Healthcare Corp. 9.63% 2002................................... 240,000 261,300
-------------
</TABLE>
---------------------
41
<PAGE> 43
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL -- 0.4%
Aerospace & Military Technology -- 0.0%
Newport News Shipbuilding, Inc. 9.25% 2006.......................... $ 250,000 $ 261,250
Business Services -- 0.3%
Hertz Corp. 7.00% 2003.............................................. 750,000 759,210
Loewen Group International, Inc. 8.25% 2003......................... 600,000 633,114
Multicanal Participacoes SA 12.63% 2004*............................ 200,000 189,500
Transportation -- 0.1%
MRS Logistica SA 9.00% 2005*(1)..................................... 100,000 94,000
MRS Logistica SA 10.63% 2005*....................................... 230,000 211,025
-------------
2,148,099
-------------
INFORMATION & ENTERTAINMENT -- 3.5%
Broadcasting & Media -- 3.0%
Bonos Del Tesoro 8.75% 2002......................................... 460,000 425,500
CBS 7.75% 1999...................................................... 740,000 750,908
CenCall Communications Corp. zero coupon 2004....................... 485,000 423,769
Globo Participacoes Limitada 11.50% 2003(2)......................... 360,000 356,400
Grupo Insacell SA de CV 10.00% 2004................................. 250,000 252,500
Grupo Televisa SA 11.38% 2003....................................... 210,000 227,086
Innova S de R. L. 12.88% 2007*...................................... 270,000 265,950
NWCG Holding Corp. zero coupon 1999................................. 1,380,000 1,252,750
Paramount Communications, Inc. 7.50% 2002........................... 200,000 203,952
Poland Communications, Inc. 9.88% 2003.............................. 160,000 160,400
Rogers Cablesystems Ltd. 9.63% 2002................................. 440,000 464,200
SCI Television, Inc. 11.00% 2005.................................... 200,000 207,562
Tele-Communications, Inc. 8.25% 2003................................ 2,500,000 2,646,800
Tele-Communications, Inc. 9.65% 2003................................ 375,000 400,804
Time Warner Pass Through Asset Trust 4.90% 1999..................... 1,600,000 1,563,232
Time Warner, Inc 7.25% 2017......................................... 850,000 849,133
Time Warner, Inc. 7.95% 2000........................................ 4,345,000 4,464,357
United International Holdings, Inc. zero coupon 1999................ 210,000 169,050
Viacom, Inc. 9.13% 1999............................................. 325,000 329,199
Viacom, Inc. 10.25% 2001............................................ 175,000 187,778
Leisure & Tourism -- 0.5%
America West Airlines 8.16% 2002.................................... 1,498,595 1,495,238
Northwest Airlines Corp. 12.09% 2000................................ 365,926 409,068
Northwest Airlines Corp. 8.97% 2015................................. 864,431 934,994
-------------
18,440,630
-------------
INFORMATION TECHNOLOGY -- 0.4%
Communication Equipment -- 0.0%
TCI Communications, Inc. 6.82% 2010................................. 95,000 95,289
TCI Communications, Inc. 8.75% 2015................................. 120,000 136,342
Electronics -- 0.1%
Axa SA de CV 9.00% 2004(1).......................................... 320,000 308,800
Telecommunications -- 0.3%
360 Communications Co. 7.13% 2003................................... 1,130,000 1,143,323
Adelphia Communications Corp. 10.25% 2000........................... 250,000 257,500
-------------
1,941,254
-------------
MATERIALS -- 0.5%
Forest Products -- 0.2%
Grupo Industrial Durango SA de CV 12.00% 2001....................... 140,000 151,150
Grupo Industrial Durango SA de CV 12.63% 2003....................... 560,000 621,600
PT Indah Kiat Pulp & Paper Corp. 8.88% 2000......................... 110,000 104,609
</TABLE>
- ---------------------
42
<PAGE> 44
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Metals & Minerals -- 0.3%
Cemex SA de CV 10.00% 1999.......................................... $ 690,000 $ 710,700
Freeport McMorgan Resource LP 8.75% 2004............................ 240,000 250,800
Industrias Metalurgicas Pescarmona SA 9.50% 2002.................... 210,000 201,075
LTV Corp. 8.20% 2007................................................ 600,000 588,000
-------------
2,627,934
-------------
MUNICIPAL BONDS -- 1.0%
Municipal Bonds -- 1.0%
Chicago Illinois Skyway Toll Bridge Revenue 5.50% 2023.............. 585,000 588,832
Indiana Health Facility Financing Authority Hospital Revenue 5.13%
2017.............................................................. 435,000 417,896
Marion County Indiana Convention and Recreational Facilities 5.00%
2027.............................................................. 570,000 538,143
Massachusetts Bay Authority 5.00% 2027.............................. 810,000 769,394
Massachusetts State Turnpike Authority Metropolitan Highway Systems
5.00% 2037........................................................ 1,110,000 1,051,747
New York City Municipal Water Finance Authority Water and Sewer
System Revenue 5.13% 2021......................................... 450,000 435,937
New York City Municipal Water Finance Authority Water and Sewer
System Revenue 5.75% 2026......................................... 445,000 457,745
North Central Texas Health Facility Development Corporation Revenue
5.13% 2022........................................................ 900,000 870,246
-------------
5,129,940
-------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 1.7%
Foreign Government -- 1.7%
Republic of Croatia 7.00% 2002(1)................................... 300,000 288,000
City of Moscow 9.50% 2000*.......................................... 370,000 356,665
City of Moscow 9.50% 2000........................................... 750,000 725,625
Ministry of Finance Russia 10.00% 2007.............................. 670,000 599,231
Province of Quebec 13.25% 2014...................................... 625,000 723,544
Republic of Argentina zero coupon 2001.............................. 1,600,000 1,689,000
Republic of Argentina 5.50% 2000(1).................................JPY 60,000,000 475,771
Republic of Argentina 8.00% 1998(1)................................. 1,200,000 1,183,800
Republic of Panama 6.84% 1998(2).................................... 1,800,006 1,758,426
Russian Federation 10.00% 2007...................................... 270,000 238,950
State of Israel 6.38% 2005.......................................... 635,000 626,802
Tucuman Province Secured Medium Term 9.45% 2004..................... 163,929 160,650
-------------
8,826,464
-------------
REAL ESTATE -- 0.7%
Real Estate Investment Trusts -- 0.7%
Chelsea GCA Realty, Inc. 7.75% 2001................................. 570,000 587,317
Dynex Capital Corp. 7.88% 2002...................................... 750,000 756,795
Felcor Suites LP 7.38% 2004......................................... 705,000 705,296
Liberty Property Trust 7.10% 2004................................... 640,000 650,105
Tanger Properties Ltd. 8.75% 2001................................... 760,000 781,850
-------------
3,481,363
-------------
U.S. GOVERNMENT & AGENCIES -- 16.2%
U.S. Government & Agencies -- 16.2%
Federal Home Loan Mortgage Corp. 5.50% 2008......................... 1,971,071 1,882,037
Federal Home Loan Mortgage Corp. 6.35% 2018......................... 3,000,000 3,001,860
Federal Home Loan Mortgage Corp. 6.50% 2099 TBA..................... 5,000,000 4,985,900
Federal Home Loan Mortgage Corp. 7.00% 1999 TBA..................... 4,000,000 4,047,480
Federal Home Loan Mortgage Corp. 7.50% 2099 TBA..................... 3,000,000 3,063,750
Federal National Mortgage Association 6.50% 2025.................... 542,378 533,906
Federal National Mortgage Association 6.50% 2025.................... 637,626 627,667
Federal National Mortgage Association 6.50% 2025.................... 751,154 739,421
</TABLE>
---------------------
43
<PAGE> 45
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT & AGENCIES (continued)
U.S. Government & Agencies (continued)
Federal National Mortgage Association 6.50% 2026.................... $ 993,826 $ 976,126
Federal National Mortgage Association 6.50% 2099.................... 1,000,000 980,620
Federal National Mortgage Association 6.50% 2099.................... 4,000,000 4,000,000
Federal National Mortgage Association 7.00% 2024.................... 1,232,926 1,185,544
Federal National Mortgage Association 7.00% 2099.................... 12,000,000 12,022,440
Government National Mortgage Association 7.00% 2023................. 393,293 394,398
Government National Mortgage Association 7.00% 2023................. 222,057 222,681
Government National Mortgage Association 7.00% 2023................. 544,591 546,121
Government National Mortgage Association 7.00% 2023................. 929,925 935,439
Government National Mortgage Association 7.00% 2023................. 231,513 232,164
Government National Mortgage Association 7.00% 2023................. 458,785 461,506
Government National Mortgage Association 7.00% 2023................. 549,756 553,016
Government National Mortgage Association 7.00% 2023................. 546,439 547,975
Government National Mortgage Association 7.00% 2023................. 190,334 190,869
Government National Mortgage Association 7.00% 2023................. 259,920 261,462
Government National Mortgage Association 7.00% 2023................. 62,125 62,494
Government National Mortgage Association 7.00% 2023................. 491,746 494,971
Government National Mortgage Association 7.50% 2023................. 862,056 881,987
Government National Mortgage Association 7.50% 2099 TBA............. 8,000,000 8,160,000
Government National Mortgage Association 8.00% 2026................. 216,701 224,082
Government National Mortgage Association 8.00% 2026................. 683,849 707,140
Government National Mortgage Association 8.00% 2099 TBA............. 3,000,000 3,102,180
United States Treasury Bonds 7.63% 2025............................. 1,070,000 1,281,828
United States Treasury Bonds 7.88% 2021@............................ 2,510,000 3,045,333
United States Treasury Bonds 8.13% 2021............................. 200,000 248,968
United States Treasury Bonds 8.75% 2020............................. 6,360,000 8,369,378
United States Treasury Bonds Strip zero coupon 2004................. 15,690,000 10,452,835
United States Treasury Bonds Strip zero coupon 2017................. 50,000 14,997
United States Treasury Bonds Strip zero coupon 2019................. 40,000 10,423
United States Treasury Bonds Strip zero coupon 2020................. 7,920,000 2,003,760
United States Treasury Bonds Strip zero coupon 2021................. 1,000,000 230,270
United States Treasury Bonds Strip zero coupon 2005................. 2,800,000 1,809,752
United States Treasury Notes 5.63% 2000............................. 1,850,000 1,839,307
-------------
85,332,087
-------------
UTILITIES -- 0.5%
Electric Utilities -- 0.5%
Central Maine Power Co. 7.45% 1999.................................. 885,000 892,744
Korea Electric Power Corp. 7.40% 2016............................... 607,862 651,847
Niagara Mohawk Power Corp. 6.88% 2003............................... 870,000 868,921
Gas & Pipeline Utilities -- 0.0%
Bridas Corp. 9.50% 1999*............................................ 130,000 131,137
Bridas Corp. 12.50% 1999............................................ 60,000 63,545
-------------
2,608,194
-------------
TOTAL BONDS & NOTES (cost $181,316,232)............................. 183,878,911
-------------
TOTAL INVESTMENT SECURITIES (cost $446,121,825)..................... 496,830,860
-------------
</TABLE>
- ---------------------
44
<PAGE> 46
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 2.0% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 0.7%
Advanta Corporation Medium Term Notes 7.00% due 9/16/98............. $ 1,350,000 $ 1,351,013
Arkla, Inc. 9.20% due 12/18/97...................................... 250,000 250,290
Blockbuster Entertainment Corp. 6.63% due 2/15/98................... 580,000 579,919
General Motors Acceptance Corp. 7.63% due 3/9/98.................... 585,000 587,445
Tele-Communications, Inc. 7.13% due 2/2/98.......................... 1,000,000 1,000,770
-------------
3,769,437
-------------
FOREIGN SHORT-TERM NOTES -- 1.3%
Acindar Industries 11.66% due 11/12/98.............................. 440,000 435,147
Banco Nacional de Desenvolvimento Economico e Social 10.38% due
4/27/98........................................................... 220,000 222,200
Empresa Col de Petroleos 7.25% due 7/8/98........................... 240,000 240,600
Empresas Ica Sociedad ADS 9.75% due 2/11/98......................... 1,810,000 1,823,575
Globo Participacoes Limitada zero coupon due 4/20/98(1)............. 280,000 270,200
Nacional Financiera, Inc. 5.88% due 2/17/98......................... 310,000 309,031
Nacional Financiera, Inc. 8.13% due 4/9/98*......................... 160,000 159,800
Petroleo Brasileiro SA 7.25% due 2/6/98............................. 250,000 249,089
Polysindo Eka Perkasa zero coupon due 11/19/98(1)................... 1,000,000 849,890
Polysindo Eka Perkasa zero coupon due 7/14/98....................... 1,000,000 906,144
Republic of Argentina zero coupon due 3/20/98....................... 800,000 779,785
Republic of Argentina zero coupon due 10/16/98...................... 50,000 46,234
Republic of Argentina zero coupon due 4/4/98(1)..................... 110,170 109,895
Republic of Argentina zero coupon due 4/6/98(1)..................... 105,800 105,535
Trikem SA 10.63% due 5/8/98(1)...................................... 380,000 355,300
-------------
6,862,425
-------------
TOTAL SHORT-TERM SECURITIES (cost $10,747,235)...................... 10,631,862
-------------
</TABLE>
<TABLE>
<CAPTION>
REPURCHASE AGREEMENT -- 10.0%
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
REPURCHASE AGREEMENT -- 10.0%
Agreement with State Street Bank and Trust, Co., bearing interest of
5.55% dated 11/28/97, to be repurchased 12/01/97 in the amount of
$52,528,283 and collateralized by $40,990,000 U.S. Treasury Note
8.5% due 2/15/20 approximate aggregate value $53,525,366 (cost
$52,504,000)....................................................... 52,504,000 52,504,000
-------------
TOTAL INVESTMENTS --
(cost $509,364,650) 106.3% 559,966,722
Total currency swap agreement, at value(3)-- (0.0) (8,410)
Liabilities in excess of other assets -- (6.3) (33,372,917)
------ -------------
NET ASSETS -- 100.0% $526,585,395
==============
======
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
(1) Fair valued security; see Note 2
(2) Variable rate security; rate as of November 30, 1997
(3) The Portfolio entered into a currency swap agreement with
Swiss Bank Corporation ("Swiss Bank"). Under the agreement the
Portfolio will pay Swiss Bank 3,300,000 Yen each year
commencing September 6, 1997 until September 6, 2000, with an
additional payment of 60,000,000 Yen due September 6, 2000. In
return, Swiss Bank will pay the Portfolio $21,570 on March 6
and September 6 each year commencing March 6, 1997 until
September 6, 2000 with an additional payment of $488,003 due
September 6, 2000.
ADS -- American Depository Shares
JPY -- Japanese Yen
@ The security or a portion thereof represents collateral for the
currency swap agreement and the following open futures
contracts:
---------------------
45
<PAGE> 47
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
------------------------------------------------------------------------------------------------------------
UNREALIZED
NUMBER OF EXPIRATION VALUE AT VALUE AS OF APPRECIATION/
CONTRACTS DESCRIPTION DATE TRADE DATE NOVEMBER 30, 1997 DEPRECIATION
------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
18 Long 90 Day Euro Dollar......... December 1997 $ 4,228,569 $ 4,234,726 $ 6,157
45 Long 90 Day Euro Dollar......... December 1997 4,871,441 4,864,219 (7,222)
5 Long 90 Day Euro Dollar......... March 1998 1,174,532 1,176,812 2,280
4 Long 90 Day Euro Dollar......... June 1998 936,725 940,900 5,175
5 Long 90 Day Euro Dollar......... September 1998 1,172,657 1,175,375 2,718
41 Long 90 Day Euro Dollar......... December 1998 4,641,885 4,886,688 244,803
10 Long U.S. 2 Year Note........... March 1998 2,073,500 2,072,812 (688)
31 Long U.S. 10 Year Note.......... March 1998 3,458,633 3,452,625 (6,008)
16 Long U.S. 20 Year Note.......... March 1998 1,904,632 1,904,500 (132)
--------------
Net Unrealized Appreciation..................................................... $ 247,083
=============
</TABLE>
-----------------------------
TBA -- Securities purchased on a forward commitment basis with an
approximate principal amount and no definitive maturity
date. The actual principal amount and maturity date will be
determined upon settlement.
See Notes to Financial Statements
- ---------------------
46
<PAGE> 48
- ---------------------
SUNAMERICA SERIES TRUST
UTILITY PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
<TABLE>
<CAPTION>
COMMON STOCK -- 80.0% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER STAPLES -- 0.7%
Food, Beverage & Tobacco -- 0.7%
RJR Nabisco Holdings Corp. ............................................ 4,600 $ 167,612
-------------
ENERGY -- 4.2%
Energy Sources -- 4.2%
Atlantic Richfield Co. ................................................ 1,800 146,700
Sonat, Inc. ........................................................... 9,800 426,912
Texaco, Inc. .......................................................... 2,200 124,300
Ultramar Diamond Shamrock Corp.+....................................... 10,900 331,769
-------------
1,029,681
-------------
INDUSTRIAL & COMMERCIAL -- 0.8%
Multi-Industry -- 0.8%
Viag AG................................................................ 400 203,278
-------------
INFORMATION TECHNOLOGY -- 2.7%
Telecommunications -- 2.7%
U.S. West Communications Group......................................... 14,500 655,219
-------------
REAL ESTATE -- 8.4%
Real Estate Investment Trusts -- 8.4%
Associated Estates Realty Corp. ....................................... 10,200 230,138
Avalon Properties, Inc. ............................................... 5,100 156,825
Boston Properties, Inc. ............................................... 7,100 231,637
Duke Realty Investments, Inc. ......................................... 13,300 305,900
Equity Residential Properties Trust.................................... 4,500 225,000
Liberty Property Trust................................................. 6,100 170,419
Meditrust Corp. ....................................................... 8,977 341,126
Price REIT, Inc. ...................................................... 2,600 102,700
Security Capital Industrial Trust...................................... 2,300 57,931
Security Capital Pacific Trust......................................... 8,614 209,428
-------------
2,031,104
-------------
UTILITIES -- 63.2%
Electric Utilities -- 32.2%
Central & South West Corp. ............................................ 5,100 127,500
Cinergy Corp. ......................................................... 9,400 334,875
DPL, Inc. ............................................................. 16,700 438,375
DQE, Inc. ............................................................. 13,500 448,031
Duke Energy Corp. ..................................................... 10,768 559,936
Electric de Portugal................................................... 9,680 174,960
Entergy Corp. ......................................................... 21,700 564,200
Florida Progress Corp. ................................................ 3,400 120,488
FPL Group, Inc. ....................................................... 12,500 699,219
Montana Power Co. ..................................................... 6,900 188,887
National Power PLC Corp. ADR........................................... 3,400 127,713
New Century Energies, Inc. ............................................ 5,000 221,250
NIPSCO Industries, Inc. ............................................... 12,700 594,519
PacifiCorp............................................................. 24,600 573,487
Pinnacle West Capital Corp. ........................................... 11,900 458,894
Potomac Electric Power Co. ............................................ 1,000 24,750
</TABLE>
---------------------
47
<PAGE> 49
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Electric Utilities (continued)
Public Service Enterprise Group, Inc. ................................. 5,300 $ 154,694
Puget Sound Energy, Inc. .............................................. 11,100 306,637
Southern Co. .......................................................... 19,400 465,600
TECO Energy, Inc. ..................................................... 16,600 425,375
Texas Utilities Co. ................................................... 13,000 520,000
Union Electric Co. .................................................... 5,000 199,062
UtiliCorp United, Inc. ................................................ 3,700 126,494
Gas & Pipeline Utilities -- 18.6%
AGL Resources, Inc. ................................................... 1,500 29,438
American Water Works, Inc. ............................................ 2,400 68,850
Atmos Energy Corp. .................................................... 1,400 37,188
CMS Energy Corp. ...................................................... 19,600 771,750
Columbia Gas Systems, Inc. ............................................ 1,800 130,950
Consolidated Natural Gas Co. .......................................... 8,700 525,262
El Paso Natural Gas Co. ............................................... 5,600 343,700
Enron Corp. ........................................................... 12,200 472,750
Keyspan Energy Corp. .................................................. 2,900 96,606
MAPCO, Inc. ........................................................... 3,500 150,938
MCN Energy Group Inc. ................................................. 15,500 591,906
New Jersey Resources Corp. ............................................ 1,100 38,294
Pacific Enterprises.................................................... 15,300 541,237
PG&E Corp. ............................................................ 11,500 324,875
SCANA Corp............................................................. 9,100 251,387
Williams Cos., Inc. ................................................... 3,050 162,984
Telephone -- 12.4%
Ameritech Corp. ....................................................... 2,800 215,775
Bell Atlantic Corp. ................................................... 5,000 446,250
BellSouth Corp. ....................................................... 7,200 394,200
Cincinnati Bell, Inc. ................................................. 1,500 44,250
GTE Corp. ............................................................. 7,300 369,106
MCI Communications Corp. .............................................. 10,600 465,738
SBC Communications, Inc. .............................................. 7,600 553,375
Sprint Corp. .......................................................... 8,900 521,206
-------------
15,402,961
-------------
TOTAL COMMON STOCK (cost $17,496,482).................................. 19,489,855
-------------
<CAPTION>
PREFERRED STOCK -- 8.3%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY -- 1.2%
Energy Sources -- 1.2%
Unocal Capital Trust 6.25% convertible................................. 5,000 288,125
-------------
FINANCE -- 3.5%
Banks -- 1.0%
National Australia Bank Ltd. 7.88%..................................... 8,500 239,062
Financial Services -- 2.5%
Merrill Lynch & Co., 6.25% convertible................................. 6,000 210,000
Salomon, Inc. 6.25% convertible........................................ 6,800 387,600
-------------
836,662
-------------
</TABLE>
- ---------------------
48
<PAGE> 50
<TABLE>
<CAPTION>
PREFERRED STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS -- 0.4%
Metals & Minerals -- 0.4%
Coeur D' Alene Mines Corp. 7.00% convertible........................... 8,100 $ 106,819
-------------
UTILITIES -- 3.2%
Electric Utilities -- 0.8%
CalEnergy Capital Trust II 6.25%*...................................... 4,000 197,500
Gas & Pipeline Utilities -- 2.4%
MCN Financing III 8.00%................................................ 3,000 179,250
Williams Cos., Inc. 3.50%.............................................. 3,300 413,738
-------------
790,488
-------------
TOTAL PREFERRED STOCK (cost $1,974,598)................................ 2,022,094
-------------
<CAPTION>
PRINCIPAL
CONVERTIBLE BONDS -- 0.5% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 0.5%
Drugs -- 0.5%
Roche Holdings, Inc. zero coupon 2012 convertible* (cost $121,296)..... $ 300,000 133,874
-------------
TOTAL INVESTMENT SECURITIES (cost $19,592,376)......................... 21,645,823
-------------
<CAPTION>
SHORT-TERM SECURITIES -- 11.5%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 11.5%
Cayman Island Time Deposit with State Street Bank & Trust Co.
4.50% due 12/1/97 (cost $2,801,000).................................. 2,801,000 2,801,000
-------------
TOTAL INVESTMENTS --
(cost $22,393,376) 100.3% 24,446,823
Liabilities in excess of other assets -- (0.3) (80,696)
------ -------------
NET ASSETS -- 100.0% $24,366,127
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
* Resale restricted to qualified institutional buyers
See Notes to Financial Statements
---------------------
49
<PAGE> 51
- ---------------------
SUNAMERICA SERIES TRUST
GROWTH-INCOME PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
<TABLE>
<CAPTION>
COMMON STOCK -- 90.8% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 4.4%
Apparel & Textiles -- 0.5%
Nautica Enterprises, Inc.+........................................... 115,000 $ 3,227,188
Automotive -- 1.0%
Harley-Davidson, Inc................................................. 115,000 3,040,313
Magna International, Inc., Class A ADR............................... 46,000 2,903,750
Housing -- 1.0%
Home Depot, Inc...................................................... 115,000 6,432,812
Retail -- 1.9%
Dayton Hudson Corp................................................... 77,000 5,115,687
Kohl's Corp.+........................................................ 44,000 3,184,500
Kroger Co.+.......................................................... 110,000 3,788,125
----------
27,692,375
----------
CONSUMER STAPLES -- 13.1%
Food, Beverage & Tobacco -- 7.6%
Campbell Soup Co..................................................... 102,000 5,712,000
Coca-Cola Co......................................................... 250,000 15,625,000
Coca-Cola Enterprises, Inc........................................... 110,000 3,361,875
Nabisco Holdings Corp., Class A...................................... 93,000 4,336,125
Philip Morris Cos., Inc.............................................. 360,000 15,660,000
Tyson Foods, Inc., Class A........................................... 145,000 2,628,125
Household Products -- 5.5%
Colgate-Palmolive Co................................................. 93,000 6,213,562
Estee Lauder Cos., Inc., Class A..................................... 59,900 3,208,394
Gillette Co.......................................................... 79,700 7,357,306
Procter & Gamble Co.................................................. 146,000 11,141,625
Sunbeam Corp......................................................... 83,000 3,657,188
United States Industries, Inc.+...................................... 97,800 2,518,350
----------
81,419,550
----------
ENERGY -- 5.7%
Energy Services -- 1.8%
BJ Services Co.+..................................................... 38,000 2,728,875
Nabors Industries, Inc.+............................................. 90,000 3,155,625
Noble Drilling Corp.+................................................ 100,000 3,006,250
Transocean Offshore, Inc............................................. 46,100 2,186,869
Energy Sources -- 3.9%
Apache Corp.......................................................... 70,000 2,572,500
Gulf Canada Resources Ltd.+.......................................... 300,000 2,100,000
Texaco, Inc.......................................................... 290,000 16,385,000
USX-Marathon Group, Inc.............................................. 95,000 3,253,750
----------
35,388,869
----------
</TABLE>
- ---------------------
50
<PAGE> 52
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 16.3%
Banks -- 6.7%
Banc One Corp........................................................ 112,000 $ 5,754,000
Chase Manhattan Corp................................................. 60,000 6,517,500
Citicorp............................................................. 58,000 6,956,375
First Union Corp..................................................... 133,800 6,522,750
Fleet Financial Group, Inc........................................... 75,000 4,954,687
NationsBank Corp..................................................... 106,000 6,366,625
U.S. Bancorp......................................................... 41,000 4,410,063
Financial Services -- 6.9%
Federal National Mortgage Association................................ 130,000 6,865,625
First Data Corp...................................................... 58,000 1,642,125
Household International, Inc......................................... 29,500 3,717,000
MBNA Corp............................................................ 180,000 4,781,250
Merrill Lynch & Co., Inc............................................. 106,000 7,439,875
Morgan Stanley, Dean Witter, Discover & Co........................... 156,265 8,487,143
PennCorp Financial Group, Inc........................................ 75,000 2,535,937
Travelers Group, Inc................................................. 153,600 7,756,800
Insurance -- 2.7%
American International Group, Inc.................................... 82,000 8,266,625
Hartford Financial Services, Inc..................................... 31,000 2,596,250
PMI Group, Inc....................................................... 53,300 3,464,500
Travelers Property Casualty Corp., Class A........................... 65,000 2,583,750
----------
101,618,880
----------
HEALTHCARE -- 13.3%
Drugs -- 8.8%
Bristol-Myers Squibb Co.............................................. 130,000 12,171,250
GelTex Pharmaceuticals, Inc.+........................................ 135,000 3,780,000
IDEC Pharmaceuticals Corp.+.......................................... 85,000 2,969,688
Merck & Co., Inc..................................................... 154,900 14,647,731
Pfizer, Inc.......................................................... 155,000 11,276,250
Schering-Plough Corp................................................. 160,000 10,030,000
Health Services -- 0.6%
United Healthcare Corp............................................... 70,000 3,644,375
Medical Products -- 3.9%
Abbott Laboratories, Inc............................................. 97,000 6,305,000
Centocor, Inc.+...................................................... 77,200 3,358,200
Genzyme Corp......................................................... 92,000 2,466,750
Johnson & Johnson Co................................................. 104,000 6,545,500
Medtronic, Inc....................................................... 112,700 5,381,425
----------
82,576,169
----------
INDUSTRIAL & COMMERCIAL -- 9.6%
Aerospace & Military Technology -- 2.4%
AlliedSignal, Inc.................................................... 180,000 6,682,500
Boeing Co............................................................ 100,000 5,312,500
Gulfstream Aerospace Corp.+.......................................... 105,000 3,084,375
Business Services -- 0.4%
USA Waste Services, Inc.+............................................ 65,000 2,149,062
Electrical Equipment -- 3.5%
General Electric Co.................................................. 290,000 21,387,500
Machinery -- 0.9%
Applied Materials, Inc.+............................................. 174,000 5,742,000
</TABLE>
---------------------
51
<PAGE> 53
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Multi-Industry -- 1.4%
Tyco International Ltd............................................... 131,800 $ 5,173,150
United Technologies Corp............................................. 50,000 3,746,875
Transportation -- 1.0%
CNF Transportation, Inc.............................................. 80,000 3,480,000
Union Pacific Corp................................................... 1 60
Wisconsin Central Transportation Corp.+.............................. 95,000 2,861,875
----------
59,619,897
----------
INFORMATION & ENTERTAINMENT -- 6.6%
Broadcasting & Media -- 2.9%
Gannett Co., Inc..................................................... 66,000 3,832,125
Liberty Media Group, Corp., Class A+................................. 128,975 4,352,906
New York Times Co., Class A.......................................... 44,000 2,612,500
Reuters Holdings PLC, Class B ADR.................................... 66,000 4,463,250
Scripps (E.W) Co., Class A........................................... 75,000 3,154,688
Leisure & Tourism -- 3.7%
Carnival Corp., Class A.............................................. 95,200 5,146,750
Disney (Walt) Co..................................................... 110,000 10,443,125
US Airways Group, Inc.+.............................................. 75,000 4,134,375
Viad Corp............................................................ 160,000 3,050,000
----------
41,189,719
----------
INFORMATION TECHNOLOGY -- 16.0%
Communication Equipment -- 2.5%
ADC Telecommunications, Inc.+........................................ 75,000 2,789,063
Cox Communications, Inc., Class A+................................... 110,000 3,733,125
DSC Communications Corp.+............................................ 100,000 2,256,250
Northern Telecom Ltd................................................. 40,400 3,628,425
Tellabs, Inc.+....................................................... 60,000 3,120,000
Computers & Business Equipment -- 2.8%
Compaq Computer Corp................................................. 118,500 7,398,844
Dell Computer Corp.+................................................. 80,000 6,735,000
Staples, Inc.+....................................................... 110,000 3,100,625
Electronics -- 4.0%
Altera Corp.+........................................................ 66,000 3,089,625
Intel Corp........................................................... 180,000 13,972,500
National Semiconductor Corp.+........................................ 105,000 3,478,125
Solectron Corp.+..................................................... 70,000 2,550,625
Xilinx, Inc.+........................................................ 55,000 1,900,937
Software -- 5.1%
Cisco Systems, Inc.+................................................. 100,000 8,625,000
Microsoft Corp.+..................................................... 125,000 17,687,500
Oracle Systems Corp.+................................................ 165,000 5,496,562
Telecommunications -- 1.6%
Lucent Technologies, Inc............................................. 80,000 6,410,000
Teleport Communications Group Inc., Class A+......................... 75,000 3,675,000
----------
99,647,206
----------
MATERIALS -- 1.5%
Chemicals -- 0.9%
Monsanto Co.......................................................... 120,000 5,242,500
Solutia, Inc......................................................... 24,000 547,500
</TABLE>
- ---------------------
52
<PAGE> 54
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Metals & Minerals -- 0.6%
Sealed Air Corp.+.................................................... 60,000 $ 3,412,500
----------
9,202,500
----------
UTILITIES -- 4.3%
Electric Utilities -- 1.8%
AES Corp.+........................................................... 70,000 2,563,750
FPL Group, Inc....................................................... 160,000 8,950,000
Gas & Pipeline Utilities -- 0.7%
CMS Energy Corp...................................................... 110,000 4,331,250
Telephone -- 1.8%
MCI Communications Corp.............................................. 130,000 5,711,875
WorldCom, Inc.+...................................................... 165,000 5,280,000
----------
26,836,875
----------
TOTAL INVESTMENT SECURITIES (cost $417,165,603)...................... 565,192,040
----------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 9.9% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 9.6%
Cayman Island Time Deposit with State Street Bank & Trust Co.
5.25% due 12/01/97 @............................................... $59,665,000 59,665,000
----------
U.S. GOVERNMENT -- 0.3%
United States Treasury Bills 4.94% due 12/18/97 @.................... 1,665,000 1,661,116
----------
TOTAL SHORT-TERM SECURITIES (cost $61,326,116)....................... 61,326,116
----------
TOTAL INVESTMENTS --
(cost $478,491,719) 100.7% 626,518,156
Liabilities in excess of other assets -- (0.7) (4,455,660)
------ ----------
NET ASSETS -- 100.0% $622,062,496
====== ==========
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
@ The security or a portion thereof represents collateral for the
following open futures contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
<C> <S> <C> <C> <C> <C>
---------
<CAPTION>
VALUE AS OF
NUMBER OF EXPIRATION VALUE AT NOVEMBER 30, UNREALIZED
CONTRACTS DESCRIPTION DATE TRADE DATE 1997 APPRECIATION
--------- ----------- ---------- ---------- ------------ ------------
<C> <S> <C> <C> <C> <C>
128 Long Standard & Poor's 500 Index........ December 1997 $30,368,000 $30,556,800 $188,800
===========
</TABLE>
See Notes to Financial Statements
---------------------
53
<PAGE> 55
- ---------------------
SUNAMERICA SERIES TRUST
FEDERATED VALUE PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
<TABLE>
<CAPTION>
COMMON STOCK -- 93.3% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 8.5%
Apparel & Textiles -- 1.3%
Russell Corp........................................................... 24,500 $ 748,781
Automotive -- 1.3%
Borg-Warner Automotive, Inc............................................ 9,100 428,838
General Motors Corp.................................................... 6,000 366,000
Housing -- 1.0%
Centex Corp............................................................ 9,000 570,375
Retail -- 4.9%
Dayton Hudson Corp..................................................... 12,600 837,112
Kmart Corp.+........................................................... 83,500 1,048,969
Wal-Mart Stores, Inc................................................... 25,500 1,018,406
-------------
5,018,481
-------------
CONSUMER STAPLES -- 9.4%
Food, Beverage & Tobacco -- 6.9%
Archer-Daniels-Midland Co.............................................. 39,500 844,312
CPC International, Inc................................................. 7,500 775,313
PepsiCo, Inc........................................................... 23,500 866,562
Philip Morris Cos., Inc................................................ 8,000 348,000
RJR Nabisco Holdings Corp.............................................. 12,500 455,469
Sara Lee Corp.......................................................... 14,500 766,688
Household Products -- 2.5%
Rubbermaid, Inc........................................................ 22,900 555,325
Unilever NV............................................................ 16,000 929,000
-------------
5,540,669
-------------
ENERGY -- 12.3%
Energy Services -- 1.0%
Occidental Petroleum Corp.............................................. 20,500 608,594
Energy Sources -- 11.3%
Amerada Hess Corp...................................................... 8,000 448,000
Chevron Corp........................................................... 7,500 601,406
Exxon Corp............................................................. 9,500 579,500
Houston Industries, Inc................................................ 24,000 568,500
Mobil Corp............................................................. 8,500 611,469
Royal Dutch Petroleum Co............................................... 9,500 500,531
Sun Co., Inc........................................................... 28,500 1,152,469
Texaco, Inc............................................................ 9,000 508,500
USX-Marathon Group, Inc................................................ 33,000 1,130,250
YPF Sociedad Anonima ADR............................................... 16,500 553,781
-------------
7,263,000
-------------
FINANCE -- 11.4%
Banks -- 1.1%
Republic New York Corp................................................. 6,000 652,500
</TABLE>
- ---------------------
54
<PAGE> 56
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services -- 4.1%
Bear Stearns Cos., Inc................................................. 14,000 $ 581,000
H&R Block, Inc......................................................... 12,500 512,500
Morgan Stanley, Dean Witter, Discover and Co........................... 11,500 624,594
Nationwide Financial Services, Inc., Class A........................... 7,000 239,312
Travelers Group, Inc................................................... 8,500 429,250
Insurance -- 6.2%
Allstate Corp.......................................................... 6,000 515,250
CIGNA Corp............................................................. 7,000 1,170,750
General Re Corp........................................................ 2,600 516,100
Loews Corp............................................................. 4,500 477,563
Marsh & McLennan Cos., Inc............................................. 13,500 1,004,906
-------------
6,723,725
-------------
HEALTHCARE -- 9.0%
Drugs -- 5.2%
Bristol-Myers Squibb Co................................................ 13,000 1,217,125
Merck & Co., Inc....................................................... 6,000 567,375
Perrigo Co.+........................................................... 15,500 220,875
Pharmacia & Upjohn, Inc................................................ 32,500 1,096,875
Health Services -- 1.1%
United Healthcare Corp................................................. 8,500 442,531
Vencor, Inc.+.......................................................... 9,000 218,250
Medical Products -- 2.7%
Abbott Laboratories, Inc............................................... 9,000 585,000
Biomet, Inc............................................................ 15,400 367,675
US Surgical Corp....................................................... 23,500 619,813
-------------
5,335,519
-------------
INDUSTRIAL & COMMERCIAL -- 13.6%
Aerospace & Military Technology -- 1.0%
General Motors Corp., Class H.......................................... 8,500 569,500
Business Services -- 3.9%
Browning-Ferris Industries, Inc........................................ 14,924 532,600
Johnson Controls, Inc.................................................. 15,500 710,094
Waste Management, Inc.................................................. 43,500 1,071,187
Electrical Equipment -- 1.1%
AMP, Inc............................................................... 15,500 673,281
Machinery -- 2.1%
Cincinnati Milacron, Inc............................................... 9,600 283,800
Ingersoll-Rand Co...................................................... 24,000 981,000
Multi-Industry -- 1.9%
ITT Industries, Inc.................................................... 34,500 1,095,375
Transportation -- 3.6%
Abb Ab ADR............................................................. 4,200 520,800
AMR Corp.+............................................................. 3,700 448,394
CNF Transportation, Inc................................................ 14,400 626,400
Ryder System, Inc...................................................... 14,000 508,375
-------------
8,020,806
-------------
</TABLE>
---------------------
55
<PAGE> 57
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 2.8%
Broadcasting & Media -- 2.6%
News Corp., Ltd. ADR................................................... 4,000 $ 86,750
Readers Digest Association, Inc., Class A.............................. 24,500 586,469
Viacom, Inc., Class A+................................................. 14,500 503,875
Viacom, Inc., Class B+................................................. 10,500 367,500
Leisure & Tourism -- 0.2%
Tricon Global Restaurants, Inc.+....................................... 2,350 79,459
-------------
1,624,053
-------------
INFORMATION TECHNOLOGY -- 11.7%
Computers & Business Equipment -- 5.0%
Cabletron Systems, Inc.+............................................... 12,000 276,000
International Business Machines Corp................................... 5,500 602,594
Lexmark International Group, Inc., Class A+............................ 19,500 621,562
Seagate Technology, Inc.+.............................................. 20,000 453,750
Storage Technology Corp.+.............................................. 15,500 1,000,719
Electronics -- 1.2%
Matsushita Electric Industrial Co., Ltd. ADR........................... 4,500 697,781
Software -- 2.5%
First Data Corp........................................................ 31,500 891,844
Novell, Inc.+.......................................................... 64,000 592,000
Telecommunications -- 3.0%
Tele-Communications TCI Ventures Group, Series A+...................... 11,263 254,825
Tele-Communications, Inc., Series A+................................... 37,500 858,984
U.S. West Communications Group......................................... 14,500 655,219
-------------
6,905,278
-------------
MATERIALS -- 4.5%
Chemicals -- 2.5%
Arco Chemical Co....................................................... 6,900 316,106
Dow Chemical Co........................................................ 7,500 740,625
Eastman Kodak Co....................................................... 6,300 381,938
Forest Products -- 1.2%
Consolidated Papers, Inc............................................... 5,500 296,313
Louisiana-Pacific Corp................................................. 21,500 434,031
Metals & Minerals -- 0.8%
USX-US Steel Group, Inc................................................ 15,700 491,606
-------------
2,660,619
-------------
REAL ESTATE -- 1.2%
Real Estate Companies -- 0.3%
Security Capital Group, Inc., Class B+................................. 6,500 208,813
Real Estate Investment Trusts -- 0.9%
Boston Properties, Inc................................................. 15,500 505,687
-------------
714,500
-------------
UTILITIES -- 8.9%
Electric Utilities -- 2.0%
Entergy Corp........................................................... 23,500 611,000
Public Service Enterprise Group, Inc................................... 20,000 583,750
Gas & Pipeline Utilities -- 3.0%
Coastal Corp........................................................... 8,500 497,781
Columbia Gas Systems, Inc.............................................. 6,000 436,500
Pacific Gas & Electric Co.............................................. 29,500 833,375
</TABLE>
- ---------------------
56
<PAGE> 58
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Telephone -- 3.9%
GTE Corp............................................................... 7,000 $ 353,938
MCI Communications Corp................................................ 27,900 1,225,856
SBC Communications, Inc................................................ 9,501 691,772
-------------
5,233,972
-------------
TOTAL COMMON STOCK (cost $48,922,930).................................. 55,040,622
-------------
PREFERRED STOCK -- 1.9%
----------------------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 1.9%
Broadcasting & Media -- 1.9%
News Corp. Ltd. ADR (cost $898,748).................................... 57,000 1,125,750
-------------
TOTAL INVESTMENT SECURITIES (cost $49,821,678)......................... 56,166,372
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 5.3% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 5.3%
Cayman Island Time Deposit with State Street Bank & Trust Co. 4.50% due
12/1/97 (cost $3,130,000)............................................ $3,130,000 3,130,000
-------------
TOTAL INVESTMENTS --
(cost $52,951,678) 100.5% 59,296,372
Liabilities in excess of other assets -- (0.5) (272,428)
------ -------------
NET ASSETS -- 100.0% $59,023,944
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
57
<PAGE> 59
- ---------------------
SUNAMERICA SERIES TRUST
VENTURE VALUE PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
<TABLE>
<CAPTION>
COMMON STOCK -- 88.3% SHARES VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 4.2%
Apparel & Textiles -- 1.3%
Nike, Inc., Class B................................................. 296,700 $ 14,445,581
Housing -- 2.2%
Masco Corp. ........................................................ 529,100 24,933,837
Maytag Corp. ....................................................... 4,200 135,713
Retail -- 0.7%
Harcourt General, Inc. ............................................. 150,600 8,245,350
------------
47,760,481
------------
CONSUMER STAPLES -- 6.0%
Food, Beverage & Tobacco -- 6.0%
Archer-Daniels-Midland Co. ......................................... 610,920 13,058,420
Coca-Cola Co. ...................................................... 12,400 775,000
Gallaher Group PLC ADR.............................................. 4,200 90,038
Nestle SA ADR....................................................... 338,600 24,913,680
Philip Morris Cos., Inc. ........................................... 557,900 24,268,650
Tyson Foods, Inc., Class A.......................................... 276,400 5,009,750
Household Products -- 0.0%
Fortune Brands, Inc. ............................................... 4,200 151,988
------------
68,267,526
------------
ENERGY -- 9.2%
Energy Services -- 7.3%
British Petroleum Co. PLC ADR....................................... 81,995 6,805,585
Burlington Resources, Inc. ......................................... 341,300 15,187,850
Cooper Cameron Corp.+............................................... 203,300 12,388,593
EVI, Inc.+.......................................................... 165,300 8,502,619
Halliburton Co. .................................................... 494,800 26,688,275
Nabors Industries, Inc.+............................................ 44,900 1,574,306
Schlumberger Ltd. .................................................. 149,100 12,272,794
Energy Sources -- 1.9%
Amerada Hess Corp. ................................................. 1,800 100,800
Amoco Corp. ........................................................ 1,400 126,000
Atlantic Richfield Co. ............................................. 4,800 391,200
Chevron Corp. ...................................................... 8,100 649,519
Exxon Corp. ........................................................ 24,800 1,512,800
Mobil Corp. ........................................................ 2,200 158,262
Noble Affiliates, Inc. ............................................. 245,557 9,116,304
Pioneer Natural Resources Co. ...................................... 167,100 5,336,756
Sonat, Inc. ........................................................ 2,200 95,838
Tosco Corp. ........................................................ 122,800 3,998,675
------------
104,906,176
------------
FINANCE -- 32.9%
Banks -- 11.2%
Banc One Corp. ..................................................... 273,980 14,075,723
BankAmerica Corp. .................................................. 388,800 28,382,400
Barnett Banks, Inc. ................................................ 2,800 197,050
Citicorp. .......................................................... 189,475 22,725,158
First Union Corp. .................................................. 35,400 1,725,750
</TABLE>
- ---------------------
58
<PAGE> 60
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Banks (continued)
Golden West Financial Corp. ........................................ 73,000 $ 6,542,625
U.S. Bancorp........................................................ 131,400 14,133,712
Wells Fargo & Co. .................................................. 129,000 39,635,250
Financial Services -- 12.0%
American Express Co. ............................................... 434,100 34,239,637
Donaldson, Lufkin & Jenrette, Inc. ................................. 106,800 7,783,050
Federal Home Loan Mortgage Corp. ................................... 339,600 14,008,500
Morgan (J.P.) & Co., Inc. .......................................... 81,800 9,340,537
Morgan Stanley, Dean Witter, Discover & Co. ........................ 497,425 27,016,395
State Street Corp. ................................................. 159,600 9,496,200
TCF Financial Corp. ................................................ 44,100 2,607,413
Travelers Group, Inc. .............................................. 646,995 32,673,248
Insurance -- 9.4%
20th Century Industries............................................. 147,500 3,715,156
Allstate Corp. ..................................................... 204,495 17,561,008
American International Group, Inc. ................................. 62,700 6,320,944
Berkley (W.R.) Corp. ............................................... 201,600 8,391,600
Chubb Corp. ........................................................ 180,700 12,818,406
General Re Corp..................................................... 177,500 35,233,750
Progressive Corp., Ohio............................................. 100,900 10,291,800
Transatlantic Holdings, Inc. ....................................... 144,000 10,287,000
UNUM Corp. ......................................................... 56,000 2,656,500
Investment Companies -- 0.3%
Morgan Stanley Asia-Pacific Fund.................................... 475,467 3,536,286
------------
375,395,098
------------
HEALTHCARE -- 5.3%
Drugs -- 4.1%
American Home Products Corp. ....................................... 2,200 153,725
Bristol-Myers Squibb Co. ........................................... 51,600 4,831,050
Lilly (Eli) & Co. .................................................. 60,200 3,796,362
Merck & Co., Inc. .................................................. 25,100 2,373,519
Pfizer, Inc. ....................................................... 185,200 13,473,300
SmithKline Beecham PLC ADR.......................................... 446,600 22,162,525
Medical Products -- 1.2%
Johnson & Johnson Co. .............................................. 55,700 3,505,619
Novartis AG ADR..................................................... 125,900 10,058,302
------------
60,354,402
------------
INDUSTRIAL & COMMERCIAL -- 6.2%
Aerospace & Military Technology -- 0.8%
Boeing Co. ......................................................... 170,300 9,047,188
Business Services -- 0.0%
ACNielsen Corp.+.................................................... 133 2,984
Cognizant Corp.+.................................................... 400 17,150
Dun & Bradstreet Corp. ............................................. 400 11,200
Waste Management, Inc. ............................................. 1,400 34,475
</TABLE>
---------------------
59
<PAGE> 61
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Electrical Equipment -- 0.1%
General Electric Co. ............................................... 12,200 $ 899,750
Machinery -- 1.1%
Smith International, Inc.+.......................................... 194,200 12,428,800
Transportation -- 4.2%
Burlington Northern Santa Fe........................................ 273,400 25,016,100
Illinois Central Corp. ............................................. 211,650 7,632,628
Union Pacific Corp. ................................................ 253,400 15,204,000
------------
70,294,275
------------
INFORMATION & ENTERTAINMENT -- 5.6%
Broadcasting & Media -- 2.8%
AirTouch Communications, Inc.+...................................... 413,600 16,233,800
Gannett Co., Inc. .................................................. 188,600 10,950,588
Tribune Co. ........................................................ 89,800 5,062,475
Washington Post Co., Class B........................................ 100 45,525
Leisure & Tourism -- 2.8%
McDonald's Corp. ................................................... 661,800 32,097,300
------------
64,389,688
------------
INFORMATION TECHNOLOGY -- 13.9%
Communication Equipment -- 0.2%
Molex, Inc. ........................................................ 66,225 2,520,689
Computers & Business Equipment -- 7.3%
Hewlett-Packard Co. ................................................ 630,900 38,524,332
International Business Machines Corp. .............................. 405,200 44,394,725
Electronics -- 5.0%
Intel Corp. ........................................................ 154,400 11,985,300
Motorola, Inc. ..................................................... 233,200 14,662,450
Novellus Systems, Inc.+............................................. 188,600 7,096,075
Texas Instruments, Inc. ............................................ 472,000 23,246,000
Telecommunications -- 1.4%
360 Communications Co.+............................................. 298,600 5,748,050
Globalstar Telecommunications Ltd.+................................. 21,148 1,048,148
Loral Space & Communications Corp.+................................. 83,200 1,846,000
Qwest Communications International, Inc.+........................... 129,500 7,073,937
------------
158,145,706
------------
MATERIALS -- 1.0%
Chemicals -- 0.0%
Dow Chemical Co. ................................................... 600 59,250
Forest Products -- 0.0%
International Paper Co. ............................................ 1,300 61,669
Union Camp Corp. ................................................... 2,000 120,125
Metals & Minerals -- 1.0%
Martin Marietta Materials, Inc. .................................... 312,300 10,813,387
------------
11,054,431
------------
REAL ESTATE -- 4.0%
Real Estate Companies -- 0.8%
Crescent Operating, Inc.+........................................... 45,330 759,277
The Rouse Co. ...................................................... 272,700 8,590,050
</TABLE>
- ---------------------
60
<PAGE> 62
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE (continued)
Real Estate Investment Trusts -- 3.2%
Crescent Real Estate Equities Co. .................................. 449,400 $ 17,301,900
Federal Realty Investment Trust..................................... 47,800 1,203,963
General Growth Properties........................................... 224,500 8,278,437
Kimco Realty Corp. ................................................. 10,550 362,656
Saul Centers, Inc. ................................................. 30,500 537,563
Simon DeBartolo Group, Inc. ........................................ 400 13,075
United Dominion Realty Trust, Inc. ................................. 52,200 766,688
Vornado Realty Trust................................................ 159,400 7,143,112
Weingarten Realty Investors......................................... 15,200 633,650
------------
45,590,371
------------
UTILITIES -- 0.0%
Electric Utilities -- 0.0%
Carolina Power & Light Co. ......................................... 900 33,637
Duke Energy Corp. .................................................. 1,400 72,800
Edison International................................................ 700 18,769
Enova Corp. ........................................................ 500 13,000
New England Electric Systems........................................ 500 20,625
Southern Co. ....................................................... 1,600 38,400
Wisconsin Energy Corp. ............................................. 800 21,600
Telephone -- 0.0%
SBC Communications, Inc. ........................................... 1,200 87,375
------------
306,206
------------
TOTAL COMMON STOCK (cost $765,631,967).............................. 1,006,464,360
------------
<CAPTION>
PREFERRED STOCK -- 0.5%
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 0.3%
Banks -- 0.1%
Banc One Corp., Series convertible 3.50%............................ 7,500 735,938
Financial Services -- 0.2%
Devon Financing Trust convertible 6.50%............................. 30,700 2,256,450
------------
2,992,388
------------
INFORMATION & ENTERTAINMENT -- 0.1%
Broadcasting & Media -- 0.1%
AirTouch Communications, Inc., Class C convertible 4.25%............ 24,597 1,488,117
------------
REAL ESTATE -- 0.1%
Real Estate Companies -- 0.0%
Rouse Co., Series B 3.00%........................................... 10,000 500,000
Real Estate Investment Trusts -- 0.1%
Vornado Realty Trust, Series A 6.50%................................ 9,100 609,131
------------
1,109,131
------------
TOTAL PREFERRED STOCK (cost $4,810,031)............................. 5,589,636
------------
TOTAL INVESTMENT SECURITIES (cost $770,441,998)..................... 1,012,053,997
------------
</TABLE>
---------------------
61
<PAGE> 63
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 11.0% AMOUNT VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
FEDERAL AGENCY OBLIGATIONS -- 11.0%
Federal Home Loan Mortgage Discount Notes 5.46% 12/01/97............ $12,275,000 $ 12,275,000
Federal Home Loan Mortgage Discount Notes 5.48% 12/02/97............ 20,000,000 19,996,956
Federal Home Loan Mortgage Discount Notes 5.48% 12/03/97............ 26,080,000 26,072,060
Federal Home Loan Mortgage Discount Notes 5.48% 12/05/97............ 12,210,000 12,202,565
Federal Home Loan Mortgage Discount Notes 5.48% 12/10/97............ 18,900,000 18,874,107
Federal National Mortgage Association Discount Notes 5.50%
12/11/97.......................................................... 13,820,000 13,798,886
Federal National Mortgage Association Discount Notes 5.60%
12/11/97.......................................................... 22,920,000 22,884,347
---------------
TOTAL SHORT-TERM SECURITIES (cost $126,103,921)..................... 126,103,921
---------------
TOTAL INVESTMENTS --
(cost $896,545,919) 99.8% 1,138,157,918
Other assets less liabilities -- 0.2 1,895,369
----- --------------
NET ASSETS -- 100.0% $1,140,053,287
===== ==============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
- ---------------------
62
<PAGE> 64
- ---------------------
SUNAMERICA SERIES TRUST
PUTNAM GROWTH PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
<TABLE>
<CAPTION>
COMMON STOCK -- 94.8% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 13.1%
Apparel & Textiles -- 0.9%
Liz Claiborne, Inc................................................... 40,800 $ 2,050,200
Housing -- 0.9%
Masco Corp........................................................... 44,700 2,106,488
Retail -- 11.3%
Consolidated Stores Corp.+........................................... 57,750 2,808,094
Costco Cos., Inc.+................................................... 83,000 3,677,937
CVS Corp............................................................. 87,139 5,783,851
Dayton Hudson Corp................................................... 41,700 2,770,444
Safeway, Inc.+....................................................... 27,300 1,658,475
TJX Cos., Inc........................................................ 67,000 2,311,500
Wal-Mart Stores, Inc................................................. 131,700 5,259,769
Walgreen Co.......................................................... 75,100 2,417,281
-------------
30,844,039
-------------
CONSUMER STAPLES -- 8.6%
Food, Beverage & Tobacco -- 3.3%
Campbell Soup Co..................................................... 29,400 1,646,400
Coca-Cola Enterprises, Inc........................................... 79,900 2,441,944
ConAgra, Inc......................................................... 64,000 2,300,000
Sara Lee Corp........................................................ 26,300 1,390,612
Household Products -- 5.3%
Clorox Co............................................................ 35,200 2,732,400
Colgate-Palmolive Co................................................. 37,300 2,492,106
Estee Lauder Cos., Inc., Class A..................................... 22,500 1,205,156
Procter & Gamble Co.................................................. 78,600 5,998,163
-------------
20,206,781
-------------
ENERGY -- 6.2%
Energy Services -- 3.9%
Halliburton Co....................................................... 86,400 4,660,200
Schlumberger Ltd..................................................... 55,800 4,593,038
Energy Sources -- 2.3%
Exxon Corp........................................................... 56,500 3,446,500
Mobil Corp........................................................... 26,700 1,920,731
-------------
14,620,469
-------------
FINANCE -- 16.6%
Banks -- 4.6%
Banc One Corp........................................................ 12,000 616,500
BankAmerica Corp..................................................... 68,900 5,029,700
Barnett Banks, Inc................................................... 19,200 1,351,200
Comerica, Inc........................................................ 33,000 2,811,187
Fifth Third Bancorp.................................................. 9,400 662,700
SunTrust Banks, Inc.................................................. 5,800 411,800
Financial Services -- 9.6%
American Express Co.................................................. 64,100 5,055,888
Associates First Capital Corp. Class A............................... 7,400 475,450
Franklin Resources, Inc.............................................. 19,600 1,761,550
MBNA Corp............................................................ 125,925 3,344,883
</TABLE>
---------------------
63
<PAGE> 65
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Morgan Stanley, Dean Witter, Discover & Co........................... 41,700 $ 2,264,831
Travelers Group, Inc................................................. 105,000 5,302,500
Washington Mutual, Inc............................................... 62,400 4,313,400
Insurance -- 2.4%
American International Group, Inc.................................... 32,350 3,261,285
Conseco, Inc......................................................... 49,700 2,314,156
-------------
38,977,030
-------------
HEALTHCARE -- 13.1%
Drugs -- 12.0%
Bristol-Myers Squibb Co.............................................. 59,600 5,580,050
Cardinal Health, Inc................................................. 26,100 1,977,075
Lilly (Eli) & Co..................................................... 50,500 3,184,656
Merck & Co., Inc..................................................... 44,300 4,189,119
Pfizer, Inc.......................................................... 72,300 5,259,825
Schering-Plough Corp................................................. 52,100 3,266,019
Warner-Lambert Co.................................................... 33,100 4,629,862
Health Services -- 1.1%
HEALTHSOUTH Corp.+................................................... 100,100 2,627,625
Medical Products -- 0.0%
Guidant Corp......................................................... 1,700 109,225
-------------
30,823,456
-------------
INDUSTRIAL & COMMERCIAL -- 10.1%
Business Services -- 1.1%
Quintiles Transnational Corp.+....................................... 13,300 1,039,063
USA Waste Services, Inc.+............................................ 43,300 1,431,606
Electrical Equipment -- 5.0%
General Electric Co.................................................. 116,000 8,555,000
Westinghouse Electric Corp........................................... 102,900 3,087,000
Machinery -- 0.9%
Ingersoll-Rand Co.................................................... 54,400 2,223,600
Multi-Industry -- 3.1%
Textron, Inc......................................................... 49,600 2,932,600
Tyco International Ltd............................................... 110,200 4,325,350
-------------
23,594,219
-------------
INFORMATION & ENTERTAINMENT -- 5.1%
Broadcasting & Media -- 2.9%
Gannett Co., Inc..................................................... 89,600 5,202,400
Interpublic Group of Cos., Inc....................................... 35,600 1,706,575
Leisure & Tourism -- 2.2%
Carnival Corp., Class A.............................................. 36,300 1,962,469
Marriott International, Inc.......................................... 44,000 3,187,250
-------------
12,058,694
-------------
INFORMATION TECHNOLOGY -- 19.5%
Communication Equipment -- 1.7%
Ericsson (L.M.) Telephone Co. ADR Class B............................ 46,900 1,896,519
Tellabs, Inc.+....................................................... 40,900 2,126,800
Computers & Business Equipment -- 3.8%
Compaq Computer Corp.+............................................... 41,100 2,566,181
Dell Computer Corp.+................................................. 25,500 2,146,781
</TABLE>
- ---------------------
64
<PAGE> 66
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Computers & Business Equipment (continued)
EMC Corp.+........................................................... 93,200 $ 2,825,125
Hewlett-Packard Co................................................... 18,200 1,111,338
Pitney Bowes, Inc.................................................... 2,300 193,344
Electronics -- 2.4%
Applied Materials, Inc.+............................................. 34,600 1,141,800
Motorola, Inc........................................................ 40,300 2,533,862
Texas Instruments, Inc............................................... 39,200 1,930,600
Software -- 10.3%
BMC Software, Inc.+.................................................. 53,000 3,438,375
Computer Associates International, Inc............................... 70,650 3,678,216
Compuware Corp.+..................................................... 53,800 1,879,638
HBO & Co. ........................................................... 69,500 3,118,812
Microsoft Corp.+..................................................... 51,900 7,343,850
Parametric Technology Corp.+......................................... 37,400 1,891,038
PeopleSoft, Inc.+.................................................... 43,400 2,839,987
Telecommunications -- 1.3%
Lucent Technologies, Inc............................................. 30,200 2,419,775
Tele-Communications TCI Ventures Group, Series A+.................... 25,900 585,987
-------------
45,668,028
-------------
UTILITIES -- 2.5%
Telephone -- 2.5%
SBC Communications, Inc.............................................. 16,300 1,186,844
Sprint Corp.......................................................... 77,900 4,562,018
-------------
5,748,862
-------------
TOTAL INVESTMENT SECURITIES (cost $176,927,574)...................... 222,541,578
-------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 5.2% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 5.2%
Agreement with SBC Warburg, bearing interest of 5.67% dated 11/28/97,
to be repurchased 12/1/97 in the amount of $12,233,778 and
collateralized by $8,233,000 U.S. Treasury Notes 10.625% due
08/15/15 approximate aggregate value $12,473,023 (cost
$12,228,000)....................................................... $12,228,000 12,228,000
-------------
TOTAL INVESTMENTS --
(cost $189,155,574) 100.0% 234,769,578
Liabilities in excess of other assets -- 0.0 (43,364)
------ -------------
NET ASSETS -- 100.0% $234,726,214
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
65
<PAGE> 67
- ---------------------
SUNAMERICA SERIES TRUST
GROWTH/PHOENIX INVESTMENT
COUNSEL PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
<TABLE>
<CAPTION>
COMMON STOCK -- 98.6% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 8.1%
Housing -- 1.7%
Home Depot, Inc. ..................................................... 65,000 $ 3,635,937
Retail -- 6.4%
Borders Group, Inc.+.................................................. 50,000 1,428,125
CVS Corp. ............................................................ 60,000 3,982,500
Rite Aid Corp. ....................................................... 62,400 4,102,800
Safeway, Inc.+........................................................ 75,500 4,586,625
------------
17,735,987
------------
CONSUMER STAPLES -- 6.7%
Food, Beverage & Tobacco -- 2.6%
Philip Morris Cos., Inc. ............................................. 132,500 5,763,750
Household Products -- 4.1%
Colgate-Palmolive Co. ................................................ 34,000 2,271,625
Gillette Co. ......................................................... 48,600 4,486,388
Sunbeam Corp. ........................................................ 47,700 2,101,781
------------
14,623,544
------------
ENERGY -- 12.4%
Energy Services -- 8.4%
BJ Services Co.+...................................................... 26,000 1,867,125
Cooper Cameron Corp.+................................................. 14,400 877,500
Diamond Offshore Drilling, Inc. ...................................... 34,900 1,740,637
Halliburton Co. ...................................................... 64,900 3,500,544
Nabors Industries, Inc.+.............................................. 36,600 1,283,287
Noble Drilling Corp.+................................................. 30,600 919,913
Rowan Cos., Inc.+..................................................... 27,600 938,400
Santa Fe International Corp.+......................................... 30,100 1,262,319
Schlumberger Ltd. .................................................... 49,100 4,041,544
Transocean Offshore, Inc. ............................................ 39,700 1,883,269
Energy Sources -- 4.0%
Elf Aquitaine SA ADR.................................................. 52,800 3,022,800
Tosco Corp. .......................................................... 105,000 3,419,062
YPF Sociedad Anonima ADR.............................................. 66,300 2,225,194
------------
26,981,594
------------
FINANCE -- 15.8%
Banks -- 8.4%
AmSouth Bancorp. ..................................................... 10,000 520,625
Banco Rio de La Plata SA ADR+......................................... 65,000 816,563
BankAmerica Corp. .................................................... 57,200 4,175,600
BankBoston Corp. ..................................................... 36,900 3,288,712
Citicorp.............................................................. 22,000 2,638,625
Fleet Financial Group, Inc. .......................................... 1,900 125,519
Mellon Bank Corp. .................................................... 65,000 3,684,687
NationsBank Corp. .................................................... 51,500 3,093,219
Financial Services -- 4.9%
American Express Co. ................................................. 40,000 3,155,000
</TABLE>
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Compass Bancshares, Inc. ............................................. 14,200 $ 568,000
Franklin Resources, Inc. ............................................. 4,100 368,487
Merrill Lynch & Co., Inc. ............................................ 30,000 2,105,625
Price (T. Rowe) Associates, Inc. ..................................... 10,100 656,500
Travelers Group, Inc. ................................................ 75,000 3,787,500
Insurance -- 2.5%
Allstate Corp. ....................................................... 45,000 3,864,375
Hartford Financial Services, Inc. .................................... 18,400 1,541,000
------------
34,390,037
------------
HEALTHCARE -- 18.1%
Drugs -- 13.6%
Bristol-Myers Squibb Co. ............................................. 36,700 3,436,038
Cardinal Health, Inc. ................................................ 44,500 3,370,875
Elan Corp. PLC ADR+................................................... 22,300 1,176,325
Lilly (Eli) & Co. .................................................... 49,700 3,134,206
Pfizer, Inc. ......................................................... 106,200 7,726,050
SmithKline Beecham PLC ADR............................................ 90,000 4,466,250
Warner-Lambert Co. ................................................... 31,900 4,462,012
Watson Pharmaceuticals, Inc.+......................................... 66,300 1,972,425
Health Services -- 1.0%
HEALTHSOUTH Corp.+.................................................... 83,900 2,202,375
Medical Products -- 3.5%
Centocor, Inc.+....................................................... 37,800 1,644,300
Guidant Corp. ........................................................ 56,400 3,623,700
Medtronic, Inc. ...................................................... 49,400 2,358,850
------------
39,573,406
------------
INDUSTRIAL & COMMERCIAL -- 6.1%
Electrical Equipment -- 2.1%
General Electric Co. ................................................. 62,500 4,609,375
Machinery -- 1.0%
Deere & Co. .......................................................... 41,100 2,252,794
Multi-Industry -- 2.1%
Tyco International Ltd. .............................................. 115,000 4,513,750
Transportation -- 0.9%
Federal Express Corp.+................................................ 30,000 2,011,875
------------
13,387,794
------------
INFORMATION & ENTERTAINMENT -- 4.6%
Broadcasting & Media -- 4.6%
AirTouch Communications, Inc.+........................................ 139,700 5,483,225
Chancellor Media Corp.+............................................... 20,800 1,249,300
Liberty Media Group Corp., Class A+................................... 97,700 3,297,375
------------
10,029,900
------------
INFORMATION TECHNOLOGY -- 23.8%
Communication Equipment -- 1.4%
CIENA Corp.+.......................................................... 57,000 3,078,000
Computers & Business Equipment -- 8.0%
EMC Corp.+............................................................ 113,000 3,425,313
International Business Machines Corp. ................................ 106,800 11,701,275
Staples, Inc.+........................................................ 83,500 2,353,656
</TABLE>
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67
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Electronics -- 7.9%
Adaptec, Inc.+........................................................ 66,400 $ 3,286,800
Linear Technology Corp. .............................................. 16,400 1,055,750
National Semiconductor Corp.+......................................... 92,200 3,054,125
Philips Electronics NV ADR............................................ 113,200 7,584,400
Texas Instruments, Inc. .............................................. 45,000 2,216,250
Software -- 5.4%
BMC Software, Inc.+................................................... 35,200 2,283,600
Cisco Systems, Inc.+.................................................. 33,500 2,889,375
Compuware Corp.+...................................................... 67,400 2,354,787
HBO & Co.+............................................................ 75,100 3,370,112
J.D. Edwards & Co.+................................................... 6,000 205,500
Yahoo!, Inc.+......................................................... 12,100 618,613
Telecommunications -- 1.1%
Lucent Technologies, Inc. ............................................ 31,700 2,539,963
------------
52,017,519
------------
MATERIALS -- 0.5%
Chemicals -- 0.5%
Solutia, Inc. ........................................................ 49,000 1,117,813
------------
UTILITIES -- 2.5%
Telephone -- 2.5%
AT&T Corp. ........................................................... 99,300 5,548,387
------------
TOTAL INVESTMENT SECURITIES (cost $190,643,244)....................... 215,405,981
------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 1.0% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 1.0%
International Lease Finance Corp. 5.52% due 12/2/97................... $1,615,000 1,614,752
Koch Industries 5.53% due 12/1/97..................................... 600,000 600,000
------------
TOTAL CORPORATE SHORT-TERM NOTES (cost $2,214,752).................... 2,214,752
------------
TOTAL SHORT-TERM SECURITIES (cost $2,214,752)......................... 2,214,752
------------
TOTAL INVESTMENTS --
(cost $192,857,996) 99.6% 217,620,733
Other assets less liabilities -- 0.4 875,085
------ ------------
NET ASSETS -- 100.0% $218,495,818
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
- ---------------------
68
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- ---------------------
SUNAMERICA SERIES TRUST
ALLIANCE GROWTH PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
<TABLE>
<CAPTION>
COMMON STOCK -- 95.7% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 6.7%
Automotive -- 0.7%
Ford Motor Co......................................................... 104,900 $ 4,510,700
Housing -- 3.8%
Home Depot, Inc....................................................... 482,600 26,995,438
Retail -- 2.2%
Dayton Hudson Corp.................................................... 138,900 9,228,169
Kohl's Corp.+......................................................... 90,300 6,535,462
------------
47,269,769
------------
CONSUMER STAPLES -- 8.1%
Food, Beverage & Tobacco -- 6.9%
Campbell Soup Co...................................................... 106,400 5,958,400
Coca-Cola Co.......................................................... 157,600 9,850,000
Philip Morris Cos., Inc............................................... 758,400 32,990,400
Household Products -- 1.2%
Colgate-Palmolive Co.................................................. 37,000 2,472,062
Gillette Co........................................................... 60,600 5,594,138
------------
56,865,000
------------
ENERGY -- 1.7%
Energy Services -- 1.5%
Halliburton Co........................................................ 193,100 10,415,331
Energy Sources -- 0.2%
Texaco, Inc........................................................... 21,700 1,226,050
------------
11,641,381
------------
FINANCE -- 24.3%
Banks -- 7.8%
Chase Manhattan Corp.................................................. 98,594 10,709,773
Citicorp.............................................................. 168,700 20,233,456
NationsBank Corp...................................................... 107,200 6,438,700
Norwest Corp.......................................................... 262,040 9,810,122
U.S. Bancorp.......................................................... 70,275 7,558,955
Financial Services -- 14.7%
Associates First Capital Corp., Class A............................... 70,300 4,516,775
Federal National Mortgage Association................................. 261,100 13,789,344
First Data Corp....................................................... 153,400 4,343,138
Household International, Inc.......................................... 48,600 6,123,600
MBNA Corp............................................................. 1,126,500 29,922,656
Merrill Lynch & Co., Inc.............................................. 238,900 16,767,794
Morgan Stanley, Dean Witter, Discover & Co............................ 403,800 21,931,387
Washington Mutual, Inc................................................ 88,000 6,083,000
Insurance -- 1.8%
American International Group, Inc..................................... 51,100 5,151,519
Progressive Corp...................................................... 76,100 7,762,200
------------
171,142,419
------------
</TABLE>
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69
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 11.5%
Drugs -- 8.5%
Merck & Co., Inc...................................................... 259,200 $ 24,510,600
Pfizer, Inc........................................................... 193,000 14,040,750
Schering-Plough Corp.................................................. 337,100 21,131,956
Health Services -- 2.9%
United Healthcare Corp................................................ 392,800 20,450,150
Medical Products -- 0.1%
Medtronic, Inc........................................................ 25,000 1,193,750
------------
81,327,206
------------
INDUSTRIAL & COMMERCIAL -- 7.1%
Machinery -- 0.1%
Applied Materials, Inc.+.............................................. 35,800 1,181,400
Multi-Industry -- 7.0%
Tyco International Ltd................................................ 778,000 30,536,500
United Technologies Corp.............................................. 249,100 18,666,931
------------
50,384,831
------------
INFORMATION & ENTERTAINMENT -- 9.7%
Broadcasting & Media -- 3.5%
AirTouch Communications, Inc.+........................................ 497,500 19,526,875
Liberty Media Group Corp., Class A+................................... 144,600 4,880,250
Leisure & Tourism -- 6.2%
Disney (Walt) Co...................................................... 112,400 10,670,975
KLM Royal Dutch Air Lines NV ADR...................................... 53,100 1,911,600
Northwest Airlines Corp. Class A+..................................... 273,200 11,337,800
UAL Corp.+............................................................ 235,200 19,992,000
------------
68,319,500
------------
INFORMATION TECHNOLOGY -- 24.3%
Communication Equipment -- 7.6%
Ericsson (L.M.) Telecommunications Co., Class B ADR................... 387,500 15,669,531
Nokia Corp., Class A ADR.............................................. 457,400 38,021,375
Computers & Business Equipment -- 8.2%
Compaq Computer Corp.................................................. 486,800 30,394,575
Dell Computer Corp.+.................................................. 322,100 27,116,794
Electronics -- 2.0%
Intel Corp............................................................ 55,300 4,292,663
KLA-Tencor Corp.+..................................................... 100,900 3,909,875
Texas Instruments, Inc................................................ 126,600 6,235,050
Software -- 5.5%
Cisco Systems, Inc.+.................................................. 298,500 25,745,625
Microsoft Corp.+...................................................... 72,600 10,272,900
Oracle Systems Corp.+................................................. 74,600 2,485,112
Telecommunications -- 1.0%
Lucent Technologies, Inc.............................................. 86,500 6,930,813
------------
171,074,313
------------
</TABLE>
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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 2.3%
Telephone -- 2.3%
MCI Communications Corp............................................... 355,200 $ 15,606,600
WorldCom, Inc.+....................................................... 19,900 636,800
------------
16,243,400
------------
TOTAL COMMON STOCK (cost $593,295,973)................................ 674,267,819
------------
WARRANTS -- 3.4%+
----------------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 3.4%
Electronics -- 3.4%
Intel Corp. 3/14/98 (cost $3,321,125)................................. 422,000 24,027,625
------------
TOTAL INVESTMENT SECURITIES (cost $596,617,098)....................... 698,295,444
------------
PRINCIPAL
SHORT-TERM SECURITIES -- 1.3% AMOUNT
----------------------------------------------------------------------------------------------------
TIME DEPOSIT -- 1.2%
Cayman Island Time Deposit with State Street Bank & Trust Co. 5.25%
due 12/01/97 @...................................................... $8,674,000 8,674,000
------------
U.S. GOVERNMENT -- 0.1%
United States Treasury Bills 4.91% due 12/18/97 @..................... 300,000 299,304
------------
TOTAL SHORT-TERM SECURITIES (cost $8,973,304)......................... 8,973,304
------------
TOTAL INVESTMENTS --
(cost $605,590,402) 100.4% 707,268,748
Liabilities in excess of other assets -- (0.4) (2,735,481)
------ ------------
NET ASSETS -- 100.0% $704,533,267
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
@ The security or a portion thereof represents collateral for the
following open futures contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
<C> <S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------
<CAPTION>
NUMBER OF EXPIRATION VALUE AT VALUE AS OF UNREALIZED
CONTRACTS DESCRIPTION DATE TRADE DATE NOVEMBER 30, 1997 DEPRECIATION
------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
Standard & Poor's 500
24 Long Index........................ December 1997 $ 5,736,900 $ 5,729,400 $ (7,500)
===========
</TABLE>
See Notes to Financial Statements
---------------------
71
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- ---------------------
SUNAMERICA SERIES TRUST
GLOBAL EQUITIES PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
<TABLE>
<CAPTION>
COMMON STOCK -- 95.1% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ARGENTINA -- 0.3%
Telecommunications Argentina ADR, Class B (Information Technology)... 30,000 $ 920,625
------------
AUSTRALIA -- 0.6%
Goodman Fielder Wattie Ltd. (Consumer Staples)....................... 900,328 1,352,536
Normandy Mining Ltd. (Materials)..................................... 658,000 566,138
------------
1,918,674
------------
BELGIUM -- 1.0%
Barco NV (Industrial & Commercial)................................... 8,989 1,679,979
Bekaert SA (Industrial & Commercial)................................. 2,700 1,678,943
------------
3,358,922
------------
BRAZIL -- 0.2%
Telecomunicacoes Brasileirassa SA ADR (Information Technology)....... 6,000 626,250
------------
DENMARK -- 0.7%
Den Danske Bank (Finance)+........................................... 7,300 866,769
Sophus Berendsen A/S, Series AB (Industrial & Commercial)............ 9,000 1,407,842
------------
2,274,611
------------
FINLAND -- 1.8%
Enso Oy, Series R (Materials)........................................ 203,000 1,781,987
Huhtamaki Oy (Industrial & Commercial)............................... 19,100 816,829
Nokia Corp. AB, Class A ADR (Information Technology)................. 35,569 2,862,146
Orion-yhtyma OY Series B (Healthcare)................................ 21,000 807,488
------------
6,268,450
------------
FRANCE -- 5.3%
Banque Nationale de Paris (Finance).................................. 30,248 1,475,687
Compagnie de St. Gobain (Materials).................................. 16,786 2,280,483
Compagnie Francaise d'Etudes et de Construction Technip (Industrial &
Commercial)........................................................ 6,500 673,860
Elf Aquitaine SA (Energy)............................................ 15,070 1,748,675
L'Air Liquide SA (Materials)......................................... 11,600 1,825,487
Pinault Printemps Redoute (Consumer Discretionary)................... 5,400 2,762,523
Schneider SA (Industrial & Commercial)+.............................. 43,000 2,301,763
Societe Generale (Finance)+.......................................... 16,554 2,176,055
Total SA, Series B (Energy).......................................... 28,030 2,943,879
------------
18,188,412
------------
GERMANY -- 1.8%
Adidas AG (Consumer Discretionary)................................... 15,400 2,170,060
Continental AG (Consumer Discretionary).............................. 48,900 1,238,097
Merck KGAA (Healthcare).............................................. 40,200 1,463,476
Schmalbach-Lubeca AG (Materials)..................................... 7,300 1,368,103
------------
6,239,736
------------
HONG KONG -- 2.1%
Cheung Kong Holdings Ltd. (Real Estate).............................. 274,000 1,931,749
CITIC Pacific Ltd. (Information & Entertainment)..................... 368,000 1,466,230
Dickson Concept Industries Ltd. (Industrial & Commercial)............ 223,000 418,289
</TABLE>
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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
HONG KONG (continued)
HSBC Holdings PLC (Finance)+......................................... 57,473 $ 1,386,585
Sun Hung Kai Properties Ltd. (Real Estate)+.......................... 244,000 1,862,282
------------
7,065,135
------------
INDONESIA -- 0.4%
PT Indostat alien shares (Information Technology)+................... 350,000 794,037
PT Telekomunikasi Indonesia, Series B alien shares (Information
Technology)........................................................ 559,000 409,959
PT Telekomunikasi Indonesia ADR (Information Technology)............. 6,000 87,750
PT Tempo Scan Pacific (Healthcare)................................... 310,000 118,986
------------
1,410,732
------------
ITALY -- 2.0%
Credito Italiano SpA (Finance)....................................... 1,190,000 3,258,179
Istituto Mobiliare Italiano (Finance)................................ 63,900 667,644
Telecom Italia Mobile SpA (Information Technology)................... 230,000 931,284
Telecom Italia SpA (Information Technology).......................... 344,111 2,145,266
------------
7,002,373
------------
JAPAN -- 13.9%
Advantest Corp. (Information Technology)............................. 28,900 1,999,506
Bank of Tokyo-Mitsubishi Ltd. (Finance)+............................. 91,300 1,323,448
Canon, Inc. (Information Technology)................................. 60,000 1,447,992
Daito Trust Construction Co. (Industrial & Commercial)............... 95,130 614,199
Daiwa Securities Co., Ltd. (Finance)................................. 375,000 1,307,542
Fujitec Co. (Information Technology)................................. 102,000 505,105
Fujitsu Ltd. (Information Technology)................................ 220,000 2,465,034
Hirose Electric Co., Ltd. (Industrial & Commercial).................. 12,000 721,175
Honda Motor Co., Ltd. (Consumer Discretionary)....................... 69,000 2,497,787
Hoya Corp. (Healthcare).............................................. 28,000 855,632
Kokuyo Co., Ltd. (Industrial & Commercial)........................... 40,000 695,789
Kuraray Co., Ltd. (Materials)........................................ 80,000 689,520
Long-Term Credit Bank of Japan Ltd. (Finance)........................ 680,000 1,145,544
Mabuchi Motor Co., Ltd. (Consumer Discretionary)..................... 25,000 1,310,480
Makita Corp. (Industrial & Commercial)............................... 166,000 1,964,035
Nichiei Co., Ltd. (Materials)........................................ 18,100 1,985,504
Nintendo Co., Ltd. (Information & Entertainment)..................... 15,900 1,644,505
Olympus Optical Co. (Information & Entertainment).................... 130,000 951,381
Omron Corp. (Industrial & Commercial)................................ 106,000 1,810,617
Rohm Co. (Information Technology).................................... 36,000 3,554,163
Santen Pharmaceutical Co. (Healthcare)+.............................. 61,320 840,823
Shiseido Co., Ltd. (Consumer Staples)................................ 66,000 894,652
Sony Corp. (Information Technology).................................. 43,000 3,672,478
Sumitomo Electric Industries Ltd. (Industrial & Commercial).......... 132,000 1,768,619
Taisho Pharmaceutical Co., Ltd. (Healthcare)......................... 40,000 1,002,938
TDK Corp. (Information Technology)................................... 48,000 3,911,459
Terumo Corp. (Healthcare)............................................ 123,000 1,927,522
Yamaha Motor Co. (Consumer Discretionary)............................ 209,000 1,398,519
Yamanouchi Pharmaceutical Co., Ltd. (Healthcare)..................... 112,000 2,720,470
------------
47,626,438
------------
KOREA -- 0.0%
Pohang Iron & Steel Co., Ltd. ADR (Materials)........................ 11,000 183,563
------------
MEXICO -- 0.6%
Fomento Economico Mexicano SA de CV, Class B (Consumer Staples)+..... 155,000 1,256,833
Panamerican Beverages, Inc., Class A ADR (Consumer Staples).......... 26,000 890,500
------------
2,147,333
------------
</TABLE>
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
NETHERLANDS -- 4.2%
Akzo Nobel NV (Materials)+........................................... 19,810 $ 3,484,917
ASM Lithography Holdings NV (Industrial & Commercial)................ 38,000 2,395,914
ING Groep NV (Finance)............................................... 65,025 2,643,798
KLM Royal Dutch Air Lines NV (Information & Entertainment)........... 35,000 1,259,246
Philips Electronics NV (Information Technology)...................... 18,000 1,189,252
Stork NV (Industrial & Commercial)................................... 45,600 1,670,447
Wolters Kluwer NV (Information & Entertainment)+..................... 12,500 1,654,884
------------
14,298,458
------------
NORWAY -- 0.7%
Bergesen d.y. ASA, Class A (Industrial & Commercial)................. 67,000 1,718,928
Den Norske Bank ASA (Finance)........................................ 152,000 646,773
------------
2,365,701
------------
PHILIPPINES -- 0.0%
Manila Electric Co., Class B (Utilities)............................. 12,771 44,214
------------
SPAIN -- 1.5%
Banco Bilbao Vizcaya SA (Finance).................................... 40,500 1,223,610
Banco de Santander SA (Finance)...................................... 21,000 635,169
Tabacalera SA, Series A (Consumer Staples)........................... 27,878 2,131,374
Telefonica de Espana SA (Utilities).................................. 42,500 1,225,606
------------
5,215,759
------------
SWEDEN -- 1.3%
Ericsson L.M. Telecommunications Co., Classs B ADR (Information
Technology)........................................................ 46,000 1,876,578
Volvo AB, Class B (Consumer Discretionary)........................... 62,700 1,672,758
Volvo AB, Class A (Consumer Discretionary)........................... 36,000 946,448
------------
4,495,784
------------
SWITZERLAND -- 3.2%
Ciba Specialty Chemicals AG (Materials)+............................. 19,400 2,064,771
Nestle SA (Consumer Staples)+........................................ 2,540 3,737,495
Novartis AG (Healthcare)............................................. 1,300 2,077,009
Schindler Holding AG registered (Industrial & Commercial)............ 400 454,482
Schindler Holding AG (Industrial & Commercial)....................... 960 1,097,489
Zurich Versicherungsgesellschaft (Finance)........................... 3,480 1,464,441
------------
10,895,687
------------
UNITED KINGDOM -- 8.6%
Bass PLC (Consumer Staples)+......................................... 190,800 2,739,060
Beazer Group PLC (Consumer Discretionary)............................ 435,000 1,208,535
BPB Industries PLC (Materials)....................................... 74,700 426,424
British Aerospace PLC (Industrial & Commercial)...................... 79,100 2,158,848
British Airways PLC (Information & Entertainment).................... 140,000 1,269,716
British Petroleum Co. PLC (Energy)................................... 73,852 1,010,303
Compass Group PLC (Information & Entertainment)...................... 204,400 2,440,644
Holliday Chemical Holdings PLC (Materials)........................... 334,860 978,394
HSBC Holdings PLC (Finance).......................................... 25,000 637,138
Kingfisher PLC (Consumer Discretionary).............................. 65,993 909,478
Ladbroke Group PLC (Information & Entertainment)..................... 507,352 2,304,973
Lloyds TSB Group Ltd. PLC (Finance).................................. 187,000 2,131,815
Royal & Sun Alliance Insurance Group PLC (Finance)................... 187,967 1,692,049
Rugby Group PLC (Industrial & Commercial)............................ 593,060 1,252,025
SmithKline Beecham PLC ADR (Healthcare).............................. 30,800 1,528,450
TI Group PLC (Industrial & Commercial)............................... 15,016 121,350
Tomkins PLC (Multi-industry)......................................... 500,700 2,545,355
</TABLE>
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (continued)
United News & Media PLC (Information & Entertainment)................ 83,426 $ 1,052,510
Whitbread PLC (Consumer Staples)..................................... 210,000 2,968,581
------------
29,375,648
------------
UNITED STATES -- 44.9%
Abbott Laboratories, Inc. (Healthcare)............................... 35,100 2,281,500
ADC Telecommunications, Inc. (Information Technology)+............... 74,000 2,751,875
AlliedSignal, Inc. (Industrial & Commercial)......................... 75,800 2,814,075
American Express Co. (Finance)....................................... 19,000 1,498,625
American International Group, Inc. (Finance)......................... 27,600 2,782,425
Applied Materials, Inc. (Industrial & Commercial)+................... 48,200 1,590,600
Baker Hughes, Inc. (Energy).......................................... 45,000 1,884,375
Brunswick Corp. (Information & Entertainment)........................ 45,000 1,504,688
Campbell Soup Co. (Consumer Staples)................................. 72,100 4,037,600
Carnival Corp., Class A (Information & Entertainment)................ 52,100 2,816,656
Chase Manhattan Corp. (Finance)...................................... 34,100 3,704,112
Cisco Systems, Inc. (Information Technology)+........................ 41,000 3,536,250
COMPAQ Computer, Corp. (Information Technology)+..................... 75,250 4,698,422
CUC International, Inc. (Industrial & Commercial)+................... 110,000 3,162,500
Dayton Hudson Corp. (Consumer Discretionary)......................... 51,200 3,401,600
Dell Computer Corp. (Information Technology)+........................ 35,200 2,963,400
Disney (Walt) Co. (Information & Entertainment)...................... 41,600 3,949,400
DSC Communications Corp. (Information Technology)+................... 117,000 2,639,813
Federal Express Corp. (Industrial & Commercial)+..................... 48,000 3,219,000
First Union Corp. (Finance).......................................... 70,400 3,432,000
Gannett Co., Inc. (Information & Entertainment)...................... 80,000 4,645,000
Gillette Co. (Consumer Staples)...................................... 16,200 1,495,463
Halliburton Co. (Energy)............................................. 53,400 2,880,262
Harley-Davidson, Inc. (Consumer Discretionary)....................... 80,000 2,115,000
Hartford Financial Services, Inc. (Finance).......................... 15,900 1,331,625
Household International, Inc. (Finance).............................. 21,800 2,746,800
Intel Corp. (Information Technology)................................. 35,000 2,716,875
Kroger Co. (Consumer Discretionary)+................................. 80,200 2,761,887
Liberty Media Group Corp., Class A (Information & Entertainment)..... 91,550 3,089,812
Liz Claiborne, Inc. (Consumer Discretionary)......................... 50,000 2,512,500
Lucent Technologies, Inc. (Information Technology)................... 40,176 3,219,102
MBIA, Inc. (Finance)................................................. 34,000 2,137,750
MBNA Corp. (Finance)................................................. 121,125 3,217,383
Medtronic, Inc. (Healthcare)......................................... 42,200 2,015,050
Merck & Co., Inc. (Healthcare)....................................... 38,600 3,650,112
Microsoft Corp. (Information Technology)+............................ 13,200 1,867,800
Morgan Stanley, Dean Witter, Discover & Co. (Finance)................ 62,300 3,383,669
Nautica Enterprises, Inc. (Consumer Discretionary)+.................. 79,000 2,216,938
New York Times Co., Class A (Information & Entertainment)............ 59,900 3,556,562
Oracle Systems Corp. (Information Technology)+....................... 58,050 1,933,791
PepsiCo, Inc. (Consumer Staples)..................................... 40,000 1,475,000
Philip Morris Cos., Inc. (Consumer Staples).......................... 110,200 4,793,700
Praxair, Inc. (Materials)............................................ 40,000 1,757,500
Procter & Gamble Co. (Consumer Staples).............................. 30,400 2,319,900
Schering-Plough Corp. (Healthcare)................................... 49,800 3,121,837
Schlumberger Ltd. (Energy)........................................... 14,400 1,185,300
Solectron Corp. (Information Technology)+............................ 43,000 1,566,813
Sun Microsystems, Inc. (Information Technology)+..................... 27,000 972,000
Sunbeam Corp. (Consumer Staples)..................................... 75,100 3,309,094
Texaco, Inc. (Energy)................................................ 45,000 2,542,500
TJX Cos., Inc. (Consumer Discretionary).............................. 82,000 2,829,000
Transocean Offshore, Inc. (Energy)................................... 23,300 1,105,294
Travelers Group, Inc. (Finance)...................................... 76,599 3,868,249
Tyco International Ltd. (Industrial & Commercial).................... 120,400 4,725,700
</TABLE>
---------------------
75
<PAGE> 77
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (continued)
United States Industries, Inc. (Consumer Staples)+................... 80,400 $ 2,070,300
USA Waste Services, Inc. (Industrial & Commercial)+.................. 41,200 1,362,175
WorldCom, Inc. (Utilities)........................................... 64,300 2,057,600
-------------
153,224,259
-------------
TOTAL COMMON STOCK (cost $287,982,927)............................... 325,146,764
-------------
PREFERRED STOCK -- 0.8%
----------------------------------------------------------------------------------------------------
GERMANY -- 0.8%
Henkel KGaA (Consumer Staples)....................................... 22,160 1,362,146
ProSieben Media AG (Information & Entertainment)..................... 26,658 1,278,858
-------------
2,641,004
-------------
TOTAL PREFERRED STOCK (cost $2,330,689).............................. 2,641,004
-------------
TOTAL INVESTMENT SECURITIES (cost $290,313,616)...................... 327,787,768
-------------
PRINCIPAL
SHORT-TERM SECURITIES -- 3.4% AMOUNT
----------------------------------------------------------------------------------------------------
TIME DEPOSIT -- 3.4%
Cayman Island Time Deposit with State Street Bank & Trust Co.
5.25% due 12/01/97 (cost $11,473,000).............................. $11,473,000 11,473,000
-------------
TOTAL INVESTMENTS --
(cost $301,786,616) 99.3% 339,260,768
Other assets less liabilities -- 0.7 2,378,426
------ -------------
NET ASSETS -- 100.0% $341,639,194
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
<CAPTION>
--------------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
JPY 3,060,300,000 USD 25,710,325 02/04/98 $ 1,468,715
-----------
<CAPTION>
GROSS UNREALIZED
DEPRECIATION
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FRF 70,000,000 USD 11,485,201 12/05/97 (378,320)
-----------
Net Unrealized Appreciation..................... $ 1,090,395
===========
</TABLE>
-----------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
FRF -- French Franc USD -- United States Dollar
JPY -- Japanese Yen
</TABLE>
- ---------------------
76
<PAGE> 78
- ---------------------
SUNAMERICA SERIES TRUST
INTERNATIONAL GROWTH
AND INCOME PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
<TABLE>
<CAPTION>
COMMON STOCK -- 93.4% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ARGENTINA -- 0.9%
YPF Sociedad Anonima ADR (Energy)..................................... 11,058 $ 371,134
------------
AUSTRALIA -- 1.0%
Westpac Banking Corp. (Finance)....................................... 71,000 445,553
------------
BRAZIL -- 0.6%
Petroleo Brasileiro SA ADR (Energy)(1)................................ 10,798 236,206
------------
CANADA -- 2.4%
Bank of Nova Scotia (Finance)......................................... 14,251 618,807
National Bank of Canada (Finance)..................................... 28,163 413,246
------------
1,032,053
------------
FRANCE -- 10.4%
Compagnie Generale des Eaux (Multi-industry).......................... 6,895 911,033
Elf Aquitaine SA (Energy)............................................. 6,112 709,217
Lafarge SA (Materials)................................................ 6,717 443,757
Michelin SA, Class B (Consumer Discretionary)......................... 12,750 686,819
Renault SA (Consumer Discretionary)................................... 1,080 30,241
Scor (Finance)........................................................ 7,423 319,262
Societe Generale (Finance)+........................................... 3,595 472,570
Television Francais (Information & Entertainment)..................... 3,024 266,885
Total SA, Class B (Energy)............................................ 6,022 632,467
------------
4,472,251
------------
GERMANY -- 12.0%
Altana AG (Healthcare)................................................ 1,870 129,050
Bayer AG (Multi-industry)............................................. 24,006 888,501
Bayerische Motoren Werke AG (Consumer Discretionary).................. 949 708,723
Deutsche Bank AG (Finance)............................................ 7,271 466,317
Deutsche Lufthansa AG (Information & Entertainment)................... 24,051 456,880
Deutsche Telekom AG (Information Technology).......................... 42,324 858,000
Deutsche Telekom AG, ADR (Information Technology)..................... 2,800 57,225
Siemens AG (Industrial & Commercial).................................. 9,579 562,464
Thyssen AG (Materials)................................................ 1,965 467,990
VEBA AG (Utilities)................................................... 9,405 558,914
------------
5,154,064
------------
HONG KONG -- 1.8%
Dao Heng Bank Group Ltd. (Finance).................................... 119,000 281,709
Guoco Group Ltd. (Finance)............................................ 130,000 303,546
HSBC Holdings PLC (Finance)+.......................................... 8,000 193,007
------------
778,262
------------
IRELAND -- 3.4%
Allied Irish Banks (Finance).......................................... 104,336 913,955
CRH PLC (Industrial & Commercial)..................................... 45,403 532,537
------------
1,446,492
------------
ITALY -- 2.1%
ENI SpA (Energy)...................................................... 151,441 884,069
------------
</TABLE>
---------------------
77
<PAGE> 79
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN -- 11.7%
Canon, Inc. (Information Technology).................................. 24,000 $ 579,197
Fuji Photo Film Co., Ltd. (Materials)................................. 13,000 467,542
Ito-Yokado Co., Ltd. (Consumer Discretionary)......................... 10,000 451,322
KAO Corp. (Consumer Staples).......................................... 45,000 599,412
Kawasaki Steel Corp. (Materials)...................................... 140,000 230,362
Matsushita Electric Works Ltd. (Information Technology)............... 6,000 48,893
NEC Corp. (Information Technology).................................... 38,000 401,959
Nikko Securities Co., Ltd. (Finance).................................. 3,000 9,168
Promise Co (Finance).................................................. 12,860 710,386
Ricoh Co. Ltd. (Industrial & Commercial).............................. 32,000 386,131
Sankyo Co., Ltd. (Healthcare)......................................... 13,000 414,574
Sony Corp. (Information Technology)................................... 8,200 700,333
------------
4,999,279
------------
MEXICO -- 1.1%
Cemex SA de CV (Materials)............................................ 80,739 345,035
Fomento Economico Mexicano SA de CV, Class B (Consumer Staples)+...... 13,300 108,330
------------
453,365
------------
NETHERLANDS -- 8.6%
ABN Amro Holdings NV (Finance)........................................ 17,944 342,212
Akzo Nobel NV (Materials)+............................................ 5,247 923,037
ING Groep NV (Finance)................................................ 14,515 590,153
KLM Royal Dutch Air Lines NV (Information & Entertainment)............ 8,326 299,557
Koninlijke PTT Nederland NV (Information Technology).................. 9,485 380,870
Philips Electronics NV (Information Technology)....................... 8,840 584,055
SGS Thomson Microelectronics NV (Information Technology).............. 8,266 582,917
------------
3,702,801
------------
NEW ZEALAND -- 0.1%
Telecommunications Corp. of New Zealand Ltd. (Information
Technology)......................................................... 4,000 20,532
------------
NORWAY -- 1.6%
Den Norske Bank ASA (Finance)......................................... 160,641 683,541
------------
PORTUGAL -- 1.2%
Electricidad de Portugal SA (Utilities)............................... 900 16,267
Portugal Telecom SA (Information Technology).......................... 11,001 506,705
------------
522,972
------------
SINGAPORE -- 0.9%
Development Bank of Singapore Ltd. alien shares (Finance)............. 42,000 395,170
------------
SPAIN -- 1.1%
Iberdrola SA (Utilities).............................................. 37,899 484,190
------------
SWEDEN -- 4.8%
Pharmacia & Upjohn, Inc. ADR (Healthcare)............................. 29,930 1,034,943
Sandvik AB, Class B (Industrial & Commercial)......................... 8,711 261,166
SKF AB Series B (Materials)........................................... 18,200 426,627
Svenska Cellulosa AB, Class B (Materials)............................. 15,105 331,580
------------
2,054,316
------------
SWITZERLAND -- 6.3%
Ciba Specialty Chemicals AG (Materials)+.............................. 6,924 736,932
Julius Baer Holdings AG (Finance)..................................... 54 88,056
Nestle SA (Consumer Staples)+......................................... 584 859,329
Schweizerische Bankgesellschaft (Finance)+............................ 383 487,547
Schweiz Bankverein (Finance)+......................................... 1,770 508,357
------------
2,680,221
------------
</TABLE>
- ---------------------
78
<PAGE> 80
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM -- 21.4%
B.A.T. Industries PLC (Multi-industry)................................ 120,669 $ 1,084,205
Bass PLC (Consumer Staples)+.......................................... 40,687 584,089
British Petroleum Co. PLC (Energy).................................... 38,857 531,568
BTR Ltd. PLC (Industrial & Commercial)................................ 174,400 605,289
Cookson Group PLC (Materials)......................................... 113,440 392,757
General Electric Co. PLC (Multi-industry)............................. 137,295 893,888
Glaxo Wellcome PLC (Healthcare)....................................... 30,039 659,528
National Westminster Bank PLC (Finance)............................... 42,279 641,217
Norwich Union PLC (Finance)+.......................................... 14,275 86,311
P & O PLC (Industrial & Commercial)................................... 35,094 379,923
Rio Tinto PLC (Materials)............................................. 44,209 533,852
Rolls Royce PLC (Consumer Discretionary).............................. 211,492 846,538
Scottish Power PLC (Utilities)........................................ 60,624 491,462
Shell Transport & Trading Co. PLC (Energy)............................ 61,935 421,546
Tomkins PLC (Multi-industry).......................................... 94,969 482,784
Unilever NV PLC (Consumer Staples).................................... 69,710 549,520
------------
9,184,477
------------
TOTAL COMMON STOCK (cost $40,269,929)................................. 40,000,948
------------
PREFERRED STOCK -- 0.6%
----------------------------------------------------------------------------------------------------
BRAZIL -- 0.6%
Banco Bradesco SA (Finance) (cost $260,300)........................... 36,400,000 265,790
------------
TOTAL INVESTMENT SECURITIES (cost $40,530,229)........................ 40,266,738
------------
PRINCIPAL
SHORT-TERM SECURITIES -- 4.7% AMOUNT
----------------------------------------------------------------------------------------------------
FEDERAL AGENCY OBLIGATIONS -- 4.7%
Federal Home Loan Mortgage Discount Notes 5.50% due 12/17/97.......... $ 1,000,000 997,556
Federal National Mortgage Association Discount Note 5.49% due
12/23/97............................................................ 1,000,000 996,645
------------
TOTAL SHORT-TERM SECURITIES (cost $1,994,201)......................... 1,994,201
------------
</TABLE>
<TABLE>
<CAPTION>
REPURCHASE AGREEMENT -- 2.1%
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
REPURCHASE AGREEMENT -- 2.1%
Agreement with SBC Warburg, bearing interest of 5.67% dated 11/28/97,
to be repurchased 12/1/97 in the amount of $917,433 and
collateralized by $618,000 U.S. Treasury Notes 10.625% due 8/15/15
approximate aggregate value $936,272 (cost $917,000)................ 917,000 917,000
------------
TOTAL INVESTMENTS --
(cost $43,441,430) 100.8% 43,177,939
Liabilities in excess of other assets -- (0.8) (333,977)
------ -------------
NET ASSETS -- 100.0% $42,843,962
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
(1) Fair valued security; see Note 2
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
79
<PAGE> 81
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
<CAPTION>
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FRF 115,220 USD 19,723 12/31/97 $ 161
-----------
<CAPTION>
GROSS UNREALIZED
DEPRECIATION
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*USD 1,694,423 FRF 9,920,000 02/11/98 $ (6,245)
*USD 631,992 FRF 3,700,000 02/11/98 (2,329)
*USD 529,507 FRF 3,100,000 02/11/98 (1,952)
*FRF 9,920,000 USD 1,602,585 02/11/98 (85,593)
*FRF 3,700,000 USD 603,953 02/11/98 (25,710)
*FRF 3,100,000 USD 524,175 02/11/98 (3,380)
----------
(125,209)
----------
Net Unrealized Depreciation................ $ (125,048)
==========
</TABLE>
-----------------------------
* Represents open forward foreign currency contracts and
offsetting or partially offsetting open forward foreign currency
contracts that do not have additional market risk but have
continued counterparty settlement risk.
<TABLE>
<S> <C> <C> <C> <C> <C>
FRF -- French Franc USD -- United States Dollar
</TABLE>
See Notes to Financial Statements
- ---------------------
80
<PAGE> 82
- ---------------------
SUNAMERICA SERIES TRUST
INTERNATIONAL DIVERSIFIED
EQUITIES PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
<TABLE>
<CAPTION>
COMMON STOCK -- 81.8% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRALIA -- 1.3%
Amcor Holdings Ltd. (Materials)...................................... 15,900 $ 71,115
Australian Gas Light Co., Ltd. (Utilities)........................... 7,400 49,773
Australian National Industries Ltd. (Materials)...................... 21,500 19,232
Boral Ltd. (Industrial & Commercial)................................. 29,125 73,586
Brambles Industries Ltd. (Industrial & Commercial)................... 5,400 103,273
Broken Hill Proprietary Co., Ltd. (Materials)........................ 45,622 418,385
Burns Philp & Co., Ltd. (Consumer Staples)........................... 11,879 2,433
Coca-Cola Amatil Ltd. (Consumer Staples)............................. 18,862 140,417
Coles Myer Ltd. (Consumer Discretionary)............................. 26,138 128,508
Crown Ltd. (Information & Entertainment)............................. 13,534 8,040
CSR Ltd. (Industrial & Commercial)................................... 26,900 88,170
Fosters Brewing Group Ltd. (Consumer Staples)........................ 45,700 84,569
General Property Trust (Real Estate)................................. 29,800 53,314
Gio Australia Holdings Ltd. (Finance)................................ 23,374 56,502
Goodman Fielder Wattie Ltd. (Consumer Staples)....................... 29,602 44,470
ICI Australia Ltd. (Materials)....................................... 7,000 47,871
Leighton Holdings Ltd. (Industrial & Commercial)..................... 6,000 23,353
Lend Lease Corp., Ltd. (Finance)..................................... 5,849 119,420
M.I.M. Holdings Ltd. (Materials)..................................... 34,347 24,861
National Australia Bank Ltd. (Finance)............................... 29,241 386,765
Newcrest Mining Ltd. (Materials)..................................... 6,331 6,312
News Corp., Ltd. (Information & Entertainment)....................... 43,658 233,129
Normandy Mining Ltd. (Materials)..................................... 38,131 32,808
North Ltd. (Materials)............................................... 16,332 41,877
Pacific Dunlop Ltd. (Industrial & Commercial)........................ 21,700 44,454
Pioneer International Ltd. (Industrial & Commercial)+................ 22,200 58,363
Plutonic Resources Ltd. (Materials).................................. 5,500 8,000
Renison Goldfields Consolidated Ltd. (Materials)..................... 4,771 7,004
Rio Tintro Ltd. (Materials).......................................... 7,800 85,752
Santos Ltd. (Energy)................................................. 14,613 60,370
Smith (Howard) Ltd. (Industrial & Commercial)........................ 4,900 38,144
Sons of Gwalia Ltd. (Materials)...................................... 3,000 7,006
Southcorp Holdings Ltd. (Industrial & Commercial).................... 15,165 46,703
TABCORP Holdings Ltd. (Information & Entertainment).................. 7,900 36,683
Telstra Corp. (Information Technology)+.............................. 60,300 113,234
Western Mining Corp. Holdings Ltd. (Materials)+...................... 23,822 76,210
Westfield Trust new shares (Real Estate)............................. 1,677 3,058
Westfield Trust (Real Estate)........................................ 30,054 59,022
Westpac Banking Corp., Ltd. (Finance)................................ 41,300 259,174
------------
3,161,360
------------
AUSTRIA -- 0.4%
Austria Mikro Systeme International AG (Industrial & Commercial)..... 200 12,087
Austrian Airlines Osterreische Luftverkehrs AG (Information &
Entertainment)+.................................................... 800 17,084
Bank Austria AG (Finance)............................................ 2,600 121,520
Bank Austria AG (Finance)+........................................... 2,264 105,086
Bau Holdings AG (Consumer Discretionary)............................. 200 11,443
Boehler-Uddeholm AG (Materials)...................................... 600 40,517
BWT AG (Industrial & Commercial)..................................... 100 15,593
</TABLE>
---------------------
81
<PAGE> 83
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRIA (continued)
EA-Generali AG (Finance)............................................. 300 $ 70,833
Flughafen Wien AG (Industrial & Commercial).......................... 1,500 61,127
Lenzing AG (Materials)+.............................................. 200 10,879
Mayr-Melnhof Karton AG (Materials)................................... 700 39,204
Oesterreichische Elektrizitaetswirtschafts AG, Class A (Utilities)... 1,800 144,180
Oesterreichische Brau-Beteiligungs AG (Consumer Staples)............. 300 14,505
OMV AG (Energy)...................................................... 1,300 169,174
Radex Heraklith Industriebeteiligungs AG (Materials)................. 800 29,010
Steyr-Daimler-Puch AG (Industrial & Commercial)...................... 600 17,092
VA Technologie AG (Industrial & Commercial).......................... 700 105,427
Wienerberger Baust (Materials)....................................... 500 97,165
------------
1,081,926
------------
FRANCE -- 8.3%
Accor SA (Information Technology).................................... 1,898 358,811
Alcatel Alsthom Compagnie General D'Electricite (Information
Technology)........................................................ 7,193 901,669
AXA SA de CV (Finance)+.............................................. 15,110 1,096,526
Banque Nationale de Paris (Finance).................................. 10,119 493,668
Bouygues SA (Consumer Discretionary)................................. 1,351 136,627
Canal Plus (Information & Entertainment)............................. 1,619 281,658
Carrefour SA (Consumer Discretionary)................................ 1,850 989,980
Compagnie Financiere de Paribas SA (Finance)+........................ 5,239 378,506
Compagnie Bancaire SA (Finance)...................................... 1,370 204,689
Compagnie de St. Gobain (Materials).................................. 4,215 572,634
Compagnie Generale des Eaux (Multi-industry)......................... 6,011 794,230
Elf Aquitaine SA (Energy)............................................ 12,300 1,427,253
Eridania Beghin-Say SA (Consumer Staples)............................ 1,450 225,484
Essilor International (Healthcare)................................... 545 151,961
Etablissements Economiques du Casino Guichard-Perrachon (Consumer
Discretionary)..................................................... 4,225 234,178
France Telecom SA (Information Technology)+.......................... 35,750 1,312,927
Groupe Danone (Consumer Staples)..................................... 3,702 590,735
Havas SA (Industrial & Commercial)................................... 3,562 232,607
Imetal SA (Materials)................................................ 775 91,898
L'Air Liquide SA (Materials)......................................... 3,580 563,383
L' Oreal (Consumer Staples).......................................... 3,203 1,226,226
Lafarge SA (Materials)............................................... 4,629 305,814
Lagardere Group S.C.A. (Industrial & Commercial)..................... 5,300 152,627
Legrand SA (Information Technology).................................. 1,490 283,951
Michelin SA, Class B (Consumer Discretionary)........................ 5,836 314,375
Moet Henessy Louis Vuitton (Consumer Staples)........................ 4,150 715,651
Pathe SA (Information & Entertainment)............................... 400 77,109
Pernod-Ricard (Consumer Staples)..................................... 3,275 166,432
Peugeot SA (Consumer Discretionary).................................. 2,475 279,644
Pinault Printemps Redoute (Consumer Discretionary)................... 1,010 516,694
Promodes (Consumer Discretionary).................................... 910 334,508
Rhone-Poulenc Rorer SA, Class A (Healthcare)......................... 16,113 724,407
Sagem SA (Industrial & Commercial)................................... 240 108,102
Sanofi SA (Healthcare)............................................... 5,167 517,286
Schneider SA (Industrial & Commercial)+.............................. 6,272 335,736
Simco SA registered (Real Estate).................................... 1,221 86,870
Societe BIC SA (Industrial & Commercial)............................. 3,200 222,086
Societe Eurafrance SA (Finance)...................................... 190 76,601
Societe Generale (Finance)+.......................................... 4,645 610,594
Sodexho SA (Information & Entertainment)............................. 335 178,586
Suez Lyonnaise des Eaux (Multi-industry)+............................ 5,875 631,956
Thomson CSF (Industrial & Commercial)................................ 5,775 167,088
Total SA, Series B (Energy).......................................... 11,392 1,196,456
</TABLE>
- ---------------------
82
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FRANCE (continued)
Usinor Sacilor (Materials)........................................... 12,060 $ 189,583
Valeo SA (Consumer Discretionary).................................... 3,150 208,317
------------
20,666,123
------------
GERMANY -- 8.9%
Adidas AG (Consumer Discretionary)................................... 2,071 291,831
Agiv AG (Multi-industry)+............................................ 1,486 30,504
Allianz Holdings AG (Finance)........................................ 9,569 2,270,840
AMB Aachener Und Muenchner (Finance)................................. 167 171,309
BASF AG (Materials).................................................. 25,017 885,206
Bayer AG (Multi-industry)............................................ 30,578 1,131,741
Bayerische Hypotheken Und Bank AG (Finance).......................... 9,947 431,497
Bayerische Vereinsbank AG (Finance).................................. 10,524 625,114
Bilfinger & Berger Bau AG (Consumer Discretionary)................... 2,455 90,348
Brau Und Brunnen AG (Consumer Staples)............................... 334 27,841
CKAG Colonia Konzern AG (Finance).................................... 1,169 98,770
Continental AG (Consumer Discretionary).............................. 3,440 87,097
Daimler-Benz AG (Consumer Discretionary)............................. 22,562 1,597,955
Degussa AG (Materials)............................................... 4,108 190,550
Deutsche Bank AG (Finance)........................................... 21,259 1,363,421
Deutsche Telekom AG (Information Technology)......................... 92,569 1,876,576
Dresdner Bank AG (Finance)........................................... 19,105 741,016
Heidelberg Zement AG (Materials)..................................... 2,278 178,261
Hochtief AG (Industrial & Commercial)................................ 4,392 181,807
Karstadt AG (Consumer Discretionary)................................. 418 145,299
Klockner Humboldt Deutz AG (Industrial & Commercial)................. 2,171 14,773
Linde AG (Industrial & Commercial)................................... 484 301,625
Lufthansa AG (Information & Entertainment)........................... 15,247 289,637
Manitoba AG (Industrial & Commercial)................................ 601 178,920
Mannesmann AG (Industrial & Commercial).............................. 1,570 730,916
Merck KGAA (Healthcare).............................................. 7,895 287,417
Metro AG (Consumer Discretionary).................................... 9,660 443,697
Munchener Ruckversicherungs (Finance)................................ 3,399 1,062,007
Preussag AG (Materials).............................................. 785 224,572
RWE AG (Utilities)................................................... 14,880 729,445
SAP AG (Information Technology)...................................... 2,713 789,208
Schering AG (Healthcare)............................................. 3,390 332,560
Siemens AG (Industrial & Commercial)................................. 23,236 1,364,382
STRABAG AG (Consumer Staples)........................................ 167 11,004
Thyssen AG (Materials)............................................... 1,503 357,959
VEBA AG (Utilities).................................................. 21,827 1,297,119
Viag AG (Materials).................................................. 1,290 655,570
Volkswagen AG (Consumer Discretionary)............................... 1,219 691,239
------------
22,179,033
------------
ITALY -- 6.0%
Acciaierie & Ferriere Lombarde (Materials)........................... 9,500 41,298
Assicurazione Generali SpA (Finance)................................. 65,510 1,469,421
Banca Commerciale Italiana SpA (Finance)+............................ 103,200 295,700
Banco Ambrosiano Veneto SpA (Finance)................................ 40,900 134,001
Benetton Group SpA (Consumer Discretionary).......................... 13,678 207,439
Burgo (Cartiere) SpA (Materials)..................................... 11,700 69,080
Credito Italiano SpA (Finance)....................................... 178,500 488,727
Edison SpA (Utilities)............................................... 48,000 260,066
ENI SpA (Energy)..................................................... 566,000 3,304,146
Fiat SpA (Consumer Discretionary).................................... 238,720 689,535
Fiat SpA nonconvertible (Consumer Discretionary)..................... 52,870 83,855
Impreglio SpA (Industrial & Commercial)+............................. 20,000 14,344
</TABLE>
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<S> <C> <C>
ITALY (continued)
Istituto Bancario San Paolotorno (Finance)........................... 62,300 $ 516,053
Istituto Mobiliare Italiano (Finance)................................ 45,450 474,874
Istituto Nazionale Delle Asazioni SpA (Finance)...................... 301,700 525,664
Italcementi Fabbriche SpA (Materials)................................ 17,050 108,465
Italcementi Fabbriche SpA nonconvertible (Materials)................. 11,650 29,807
Italgas-Societa Itailiana per il Gas SpA (Utilities)................. 47,900 184,800
La Rinascente Per L'Eserciz Grandi Magazzini SpA (Consumer
Discretionary)..................................................... 17,000 128,910
Magneti Marelli SpA (Industrial & Commercial)........................ 35,000 57,031
Mediaset SpA (Information & Entertainment)........................... 85,500 422,165
Mediobanca SpA (Finance)............................................. 35,700 249,426
Montedison SpA (Multi-industry)...................................... 209,650 173,297
Montedison SpA nonconvertible (Multi-industry)....................... 67,100 37,948
Olivetti Spa (Information Technology)+............................... 260,720 146,240
Parmalat Finanziar SpA (Finance)+.................................... 112,920 163,083
Pirelli SpA (Consumer Discretionary)................................. 119,000 295,509
Riunione Adriatica de Sicur (Finance)................................ 21,225 197,499
S.A.I Societa Assicuratrice Industriale SpA (Finance)................ 9,950 100,792
Saffa SpA (Materials)+............................................... 1,300 3,582
Sirti SpA (Consumer Discretionary)................................... 22,100 133,043
SNIA BPD SpA (Multi-industry)........................................ 53,000 52,768
Telecom Italia Mobile SpA (Information Technology)................... 467,900 1,894,557
Telecom Italia Mobile SpA RNC (Information Technology)............... 112,500 246,156
Telecom Italia SpA (Information Technology).......................... 253,055 1,577,602
Telecom Italia SpA nonconvertible (Information Technology)........... 64,709 255,081
------------
15,031,964
------------
JAPAN -- 15.1%
Advantest Corp. (Information Technology)............................. 60 4,151
Ajinomoto Co., Inc. (Consumer Staples)............................... 35,000 318,120
Aoki Corp. (Industrial & Commercial)................................. 36,400 8,556
Aoyama Trading Co., Ltd. (Consumer Discretionary).................... 3,100 78,942
Asahi Bank Ltd. (Finance)............................................ 100 423
Asahi Breweries Ltd. (Consumer Staples).............................. 23,400 328,196
Asahi Chemical Industry Co., Inc. (Materials)........................ 70,000 301,665
Asahi Glass Co., Ltd. (Materials).................................... 64,200 409,975
Bank of Tokyo-Mitsubishi Ltd. (Finance)+............................. 110,400 1,600,313
Bank of Yokohama Ltd. (Finance)...................................... 100 310
Bridgestone Corp. (Industrial & Commercial).......................... 23,400 507,879
Canon, Inc. (Information Technology)................................. 28,200 680,556
Casio Computer Co. (Information Technology).......................... 13,600 108,693
Chiba Bank Ltd. (Finance)............................................ 8,000 31,216
Chugai Pharmaceutical Co., Ltd. (Healthcare)......................... 23,400 145,763
Dai Nippon Printing Co., Ltd. (Industrial & Commercial).............. 27,400 543,169
Daiei, Inc. (Consumer Discretionary)................................. 24,200 104,859
Daikin Industries Ltd. (Consumer Staples)............................ 23,400 123,028
Daiwa House Industry Co., Ltd. (Consumer Discretionary).............. 23,400 188,850
Daiwa Securities Co., Ltd. (Finance)................................. 600 2,092
East Japan Railway Co. (Industrial & Commercial)..................... 137 622,605
Ebara Corp. (Industrial & Commercial)................................ 14,600 162,445
Fanuc Ltd. (Information Technology).................................. 9,900 372,341
Fuji Bank Ltd. (Finance)............................................. 800 4,294
Fuji Photo Film Co., Ltd. (Materials)................................ 13,600 489,121
Fujitsu Ltd. (Information Technology)................................ 54,400 609,536
Furukawa Electric Co., Ltd. (Industrial & Commercial)................ 15,600 76,274
Hankyu Corp. (Industrial & Commercial)............................... 28,000 133,830
Hazama Corp. (Consumer Staples)...................................... 21,300 12,684
Hitachi Ltd. (Information Technology)+............................... 116,800 828,239
</TABLE>
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JAPAN (continued)
Honda Motor Co., Ltd. (Consumer Discretionary)....................... 27,000 $ 977,395
Ito-Yokado Co., Ltd. (Consumer Discretionary)........................ 14,600 658,931
Japan Airlines Co., Ltd. (Information & Entertainment)............... 72,100 224,280
Japan Energy Corp. (Energy).......................................... 52,400 78,420
Joyo Bank Ltd. (Finance)............................................. 200 802
Jusco Co., Ltd. (Consumer Discretionary)............................. 10,800 181,093
Kajima Corp. (Industrial & Commercial)............................... 43,800 144,141
Kansai Electric Power Co., Inc. (Utilities).......................... 31,100 528,791
KAO Corp. (Consumer Staples)......................................... 28,800 383,624
Kawasaki Steel Corp. (Materials)..................................... 36,000 59,236
Kinki Nippon Railway Co., Ltd. (Industrial & Commercial)............. 50,500 279,753
Kirin Brewery Co., Ltd. (Consumer Staples)........................... 45,800 352,763
Komatsu Ltd. (Industrial & Commercial)............................... 41,800 250,882
Kubota Ltd. (Industrial & Commercial)................................ 63,000 217,693
Kumagai Gumi Co., Ltd. (Industrial & Commercial)..................... 71,800 48,382
Kyocera Corp. (Information Technology)............................... 6,600 318,558
Kyowa Hakko Kogyo Co., Ltd. (Materials).............................. 20,400 102,300
Long-Term Credit Bank of Japan Ltd. (Finance)........................ 60,000 101,077
Marubeni Corp. (Consumer Discretionary).............................. 59,200 147,971
Marui Co., Ltd. (Consumer Discretionary)............................. 3,800 59,549
Matsushita Electric Industrial Co., Ltd. (Information Technology)+... 63,000 982,331
Mitsubishi Chemical Corp. (Materials)................................ 70,000 136,572
Mitsubishi Corp. (Consumer Discretionary)............................ 61,000 476,051
Mitsubishi Electric Corp. (Information Technology)................... 81,800 226,252
Mitsubishi Estate Co., Ltd. (Real Estate)............................ 600 6,958
Mitsubishi Heavy Industries Ltd. (Industrial & Commercial)........... 127,400 501,115
Mitsubishi Materials Corp. (Materials)............................... 41,600 93,875
Mitsubishi Trust & Banking Corp. (Finance)........................... 30,800 410,264
Mitsui & Co. (Materials)............................................. 60,600 421,173
Mitsui Engineering & Shipbuilding Co., Ltd. (Industrial &
Commercial)........................................................ 44,800 39,666
Mitsui Trust & Banking Co., Ltd. (Finance)........................... 600 1,011
Mitsukoshi Ltd. (Consumer Discretionary)............................. 22,200 62,621
Murata Manufacturing Co. Ltd. (Information Technology)............... 7,800 234,076
Mycal Corp. (Consumer Discretionary)................................. 14,600 120,118
NEC Corp. (Information Technology)................................... 39,800 420,999
New Oji Paper Co., Ltd. (Materials)+................................. 45,800 190,557
NGK Insulators Ltd. (Industrial & Commercial)........................ 23,400 218,186
Nippon Denso Co., Ltd. (Industrial & Commercial)..................... 25,200 460,067
Nippon Express Co., Ltd. (Industrial & Commercial)................... 16,400 85,839
Nippon Fire & Marine Insurance Co., Ltd. (Finance)................... 20,400 63,138
Nippon Light Metal Co., Ltd. (Materials)............................. 19,400 36,634
Nippon Meat Packers, Inc. (Consumer Staples)......................... 20,400 266,938
Nippon Oil Co., Ltd. (Energy)........................................ 66,200 230,825
Nippon Steel Corp. (Materials)....................................... 259,000 478,934
Nippon Telegraph & Telephone Corp. (Utilities)....................... 350 2,879,530
Nippon Yusen Kabushiki Kaish (Industrial & Commercial)............... 63,000 193,011
Nissan Motor Co., Ltd. (Consumer Discretionary)...................... 79,600 346,155
NKK Corp. (Materials)................................................ 136,200 137,667
Nomura Securities Co., Ltd. (Finance)................................ 400 4,952
Odakyu Electric Railway Co., Ltd. (Industrial & Commercial).......... 24,000 115,651
Osaka Gas Co., Ltd. (Utilities)...................................... 98,200 219,291
Penta Ocean Construction Co., Ltd. (Consumer Staples)................ 20,400 35,325
Pioneer Electronic Corp. (Industrial & Commercial)................... 5,600 97,410
Rohm Co. (Information Technology).................................... 1,800 177,708
Sakura Bank Ltd. (Finance)........................................... 80,400 280,967
Sankyo Co., Ltd. (Healthcare)........................................ 17,600 561,269
Sanwa Bank Ltd. (Finance)............................................ 80,000 877,571
Sanyo Electric Co., Ltd. (Information Technology).................... 63,000 177,708
</TABLE>
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JAPAN (continued)
Secom Co. (Information Technology)................................... 5,000 $ 313,418
Sega Enterprises Ltd. (Consumer Discretionary)....................... 4,600 102,362
Sekisui House Ltd. (Consumer Discretionary).......................... 23,400 168,315
Sharp Corp. (Information Technology)................................. 40,800 273,012
Shimano, Inc. (Industrial & Commercial).............................. 5,800 132,701
Shimizu Corp. (Consumer Discretionary)............................... 33,000 106,014
Shin-Etsu Chemical Co. Ltd. (Materials).............................. 9,000 213,673
Shiseido Co., Ltd. (Consumer Staples)................................ 8,600 116,576
Shizuoka Bank Ltd. (Finance)......................................... 200 1,849
Showa Denko KK (Materials)........................................... 41,800 61,902
Sony Corp. (Information Technology).................................. 10,800 922,390
Sumitomo Chemical Co., Ltd. (Materials).............................. 83,400 277,728
Sumitomo Corp. (Industrial & Commercial)............................. 44,400 280,055
Sumitomo Electric Industries Ltd. (Industrial & Commercial).......... 31,200 418,037
Sumitomo Forestry Co., Ltd. (Materials).............................. 8,800 59,299
Sumitomo Metal Industries Ltd. (Materials)........................... 83,800 170,719
Sumitomo Metal Mining Co., Ltd. (Materials).......................... 21,400 85,181
Sumitomo Osaka Cement Co., Ltd. (Materials).......................... 21,200 40,365
Sumitomo Trust & Banking Co., Ltd. (Finance)......................... 200 2,539
Taisei Corp. (Consumer Discretionary)................................ 45,800 105,865
Taisho Pharmaceutical Co., Ltd. (Healthcare)......................... 13,600 340,999
Taiyo Yuden Co., Ltd. (Information Technology)....................... 25,000 238,981
Takeda Chemical Industries Ltd. (Healthcare)......................... 28,200 824,180
Teijin Ltd. (Consumer Discretionary)................................. 45,800 120,219
Tobu Railway Co., Ltd. (Industrial & Commercial)..................... 28,200 98,327
Tohoku Electric Power Co., Inc. (Utilities).......................... 16,200 244,983
Tokyo Corp. (Industrial & Commercial)................................ 35,000 149,461
Tokyo Electric Power Co., Inc. (Utilities)........................... 39,000 699,785
Tokyo Electron Ltd. (Information Technology)......................... 3,100 118,778
Tokyo Gas Co. Ltd. (Utilities)....................................... 93,400 223,209
Tokyo Marine & Fire Insurance Co., Ltd. (Finance).................... 70,000 663,663
Toppan Printing Co., Ltd. (Information & Entertainment).............. 28,200 382,261
Toray Industries, Inc. (Materials)................................... 70,100 318,574
Toto Ltd. (Materials)................................................ 23,200 212,686
Toyobo Co., Ltd. (Consumer Discretionary)............................ 45,800 69,978
Toyota Motor Corp. (Consumer Discretionary).......................... 91,200 2,629,704
Ube Industries Ltd. (Materials)...................................... 41,800 75,330
Yamaichi Securities Co., Ltd. (Finance).............................. 900 14
Yasuda Trust & Banking Co., Ltd. (Finance)........................... 900 769
Yokogawa Electric Corp. (Information Technology)..................... 23,000 151,021
-------------
37,597,103
-------------
KOREA -- 0.0%
Samsung Electronic Co., Ltd. (Information Technology)................ 27 967
-------------
NETHERLANDS -- 2.6%
ABN Amro Holdings NV (Finance)....................................... 28,172 537,271
Akzo Nobel NV (Materials)+........................................... 1,575 277,069
Elsevier NV (Consumer Discretionary)................................. 14,500 245,157
Getronics NV (Information Technology)+............................... 1,810 62,207
Heineken NV (Consumer Staples)....................................... 1,000 169,325
ING Groep NV (Finance)............................................... 15,958 648,823
KLM Royal Dutch Air Lines NV (Information & Entertainment)........... 1,924 69,223
Koninklijke Ahold NV (Consumer Discretionary)........................ 14,601 389,399
Koninklijke KNP BT (Materials)....................................... 2,175 46,952
Koninklijke PTT Nederland NV (Information Technology)................ 9,299 373,401
Nedlloyd Groep NV (Industrial & Commercial).......................... 550 12,648
Oce-Van Der Grinten NV (Information Technology)+..................... 405 46,159
</TABLE>
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NETHERLANDS (continued)
Philips Electronics NV (Information Technology)...................... 7,050 $ 465,790
Royal Dutch Petroleum Co. (Energy)................................... 42,300 2,203,014
Stork NV (Industrial & Commercial)................................... 744 27,255
Unilever NV PLC (Consumer Staples)................................... 12,800 744,568
Wolters Kluwer NV (Information & Entertainment)+..................... 1,368 181,111
-------------
6,499,372
-------------
NORWAY -- 0.5%
Aker RGI ASA, Series A (Industrial & Commercial)..................... 2,600 45,916
Bergesen d.y. ASA, Series A (Industrial & Commercial)................ 2,300 59,008
Bergesen d.y. ASA, Series B (Industrial & Commercial)................ 900 22,777
Christiania Bank Og Kreditkasse+ (Finance)........................... 22,400 80,674
Dyno Industrier ASA (Materials)...................................... 1,300 25,127
Elkem ASA (Materials)................................................ 2,100 29,786
Hafslund ASA, Series A (Utilities)................................... 4,100 24,515
Helikopter Services Group ASA (Industrial & Commercial).............. 900 10,262
Kvaerner ASA, Series A (Industrial & Commercial)..................... 1,700 83,920
Leif Hoegh & Co. ASA (Industrial & Commercial)....................... 1,300 25,489
NCL Holdings, ASA (Information & Entertainment)...................... 5,600 20,947
Norsk Hydro ASA...................................................... 9,600 494,591
Norske Skogindustrier ASA, Class A (Materials)+...................... 1,100 33,651
Orkla ASA (Finance).................................................. 1,900 163,807
Petroleum Geo-Services (Energy)+..................................... 1,300 83,697
Unified Storebrand ASA (Finance)..................................... 11,600 78,878
Unitor ASA (Industrial & Commercial)................................. 800 10,346
-------------
1,293,391
-------------
PORTUGAL -- 1.1%
Banco Commercial Portugues SA (Finance).............................. 13,000 274,140
Banco Espirito Santo e Comercial de Lisboa (Finance)+................ 6,900 194,096
Banco Totta & Acores SA (Finance).................................... 5,000 94,340
BPI-SGPS SA (Finance)+............................................... 6,600 146,687
Cimpor-Cimentos de Portugal SA SGPS (Consumer Staples)............... 6,900 174,759
CIN-Corparacao Industrial de Norte SA (Materials).................... 300 18,629
Corticeira Amorim SA (Materials)..................................... 1,300 14,789
Electricidad de Portugal SA (Utilities).............................. 30,500 551,268
INAPA-Investimentos Participacoes e Gestao SA (Materials)............ 400 13,319
Jeronimo Martins SGPS SA (Consumer Staples).......................... 2,000 63,208
Portucel Industrial-Empresa Produtora de Celulose SA (Materials)..... 7,400 47,554
Portugal Telecom SA (Information Technology)......................... 19,100 879,745
Soares Da Costa (Consumer Discretionary)............................. 1,000 7,769
Sonae Investimentos-Sociedade Gestora de Participacoes Sociais SA
(Industrial & Commercial).......................................... 3,400 127,075
UNICER-Uniao Cervejeira SA (Consumer Staples)........................ 900 14,084
-------------
2,621,462
-------------
SINGAPORE -- 0.9%
Asis Foods & Properties Ltd. (Consumer Staples)+..................... 22,666 5,440
City Developments Ltd. (Real Estate)................................. 32,000 157,566
Creative Technolog Ltd. (Information Technology)..................... 4,000 111,149
Cycle & Carriage Ltd. (Consumer Discretionary)....................... 9,000 38,106
DBS Land Ltd. (Real Estate).......................................... 38,000 64,595
Development Bank of Singapore Ltd. alien shares (Finance)............ 19,000 178,767
First Capital Corp., Ltd. alien shares (Real Estate)................. 12,000 13,549
Fraser & Neave Ltd. alien shares (Consumer Staples).................. 11,800 58,843
Hai Sun Hup Group Ltd. alien shares (Finance)........................ 23,000 10,027
Hotel Properties Ltd. alien shares (Real Estate)..................... 19,000 13,706
Inchcape Bhd alien shares (Multi-industry)........................... 8,000 21,377
</TABLE>
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<S> <C> <C>
SINGAPORE (continued)
Keppel Corp., Ltd. (Industrial & Commercial)......................... 29,000 $ 98,228
Metro Holdings Ltd. (Consumer Discretionary)......................... 4,000 7,502
NatSteel Ltd. (Materials)............................................ 13,000 27,398
Neptune Orient Lines Ltd. (Industrial & Commercial).................. 35,000 20,856
Overseas Chinese Banking Corp., Ltd. alien shares (Finance).......... 33,534 200,878
Overseas Union Enterprise Ltd. (Information & Entertainment)......... 6,000 13,925
Parkway Holdings Ltd. alien shares (Real Estate)..................... 13,000 30,823
Robinson & Co., Ltd. alien shares (Consumer Discretionary)........... 2,400 7,437
Shangri-La Hotel Ltd. alien shares (Information & Entertainment)..... 6,400 12,284
Singapore Airlines Ltd. alien shares (Information & Entertainment)... 35,000 228,321
Singapore Press Holdings Ltd. alien shares (Information &
Entertainment)..................................................... 7,800 106,658
Singapore Tech Industrial Corp. (Industrial & Commercial)............ 29,000 29,468
Singapore Telecommunications Ltd. (Information Technology)........... 243,000 469,462
Straits Trading Co., Ltd. (Materials)................................ 14,000 20,022
United Industrial Corp., Ltd. (Multi-industry)....................... 58,000 27,286
United Overseas Bank Ltd. alien shares (Finance)..................... 33,000 196,644
United Overseas Land (Real Estate)................................... 22,000 21,389
-------------
2,191,706
-------------
SPAIN -- 4.4%
Acerinox SA (Materials).............................................. 787 122,977
Autopistas Concesionaria Espana SA (Industrial & Commercial)......... 15,186 202,670
Banco Bilbao Vizcaya SA (Finance).................................... 48,450 1,463,800
Banco Central Hispanoamericano SA (Finance).......................... 23,600 452,659
Banco de Santander SA (Finance)...................................... 34,350 1,038,954
Corporacion Bancaria de Espana SA (Finance).......................... 9,050 561,414
Corporacion Financiera Alba SA (Multi-industry)...................... 1,125 121,471
Corporacion Mapfre SA registered (Finance)........................... 1,968 96,084
Dragados & Construcciones SA (Consumer Discretionary)................ 4,150 88,227
Ebro Agricolas, Compania de Alimentacion SA (Industrial &
Commercial)........................................................ 3,450 59,694
Empresa Nacional Celulos SA (Materials).............................. 1,475 23,939
Endesa SA (Utilities)................................................ 73,200 1,377,010
Ercros SA (Materials)................................................ 12,200 12,436
Fomento de Construcciones y Contratas SA (Consumer Discretionary).... 4,300 170,720
Gas Natural SDG, SA (Utilities)...................................... 10,800 534,532
Iberdrola SA (Utilities)............................................. 66,700 852,146
Inmobiliaria Metropolitana Vasco Central SA (Real Estate)............ 1,712 73,826
Mapfre Vida SA (Finance)............................................. 13 802
Portland Valderrivas SA (Materials).................................. 475 38,705
Repsol SA (Energy)................................................... 21,600 934,344
Sociedad General de Aguas de Barcelona SA (Utilities)................ 3,143 129,000
Tabacalera SA, Series A (Consumer Staples)........................... 2,600 198,779
Telefonica de Espana SA (Utilities).................................. 67,400 1,943,666
Union Electrica Fenosa SA (Utilities)................................ 20,900 209,547
Uralita SA (Materials)............................................... 3,800 44,216
Vallehermoso SA (Real Estate)........................................ 3,083 90,457
Viscofan Industria Navarra De Envolturas Celulosicas SA
(Materials)........................................................ 1,700 41,956
Zardoya Otis SA (Industrial & Commercial)............................ 625 72,723
-------------
10,956,754
-------------
SWEDEN -- 2.7%
ABB AB, Class A (Utilities).......................................... 30,700 391,627
ABB AB, Class B (Utilities).......................................... 5,200 64,651
AGA AB, Series B (Materials)......................................... 8,750 109,920
Astra AB, Class A (Healthcare)....................................... 58,266 1,011,156
Astra AB, Class B (Healthcare)....................................... 13,600 227,210
Atlas Copco AB, Series A (Industrial & Commercial)................... 6,850 210,251
</TABLE>
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<S> <C> <C>
SWEDEN (continued)
Electrolux AB, Series B (Consumer Discretionary)..................... 3,700 $ 291,342
Ericsson L.M. Telecommunications Co., Class B (Information
Technology)........................................................ 40,100 1,635,887
Esselte AB, Series B (Information Technology)........................ 1,800 37,182
Granges AB (Materials)+.............................................. 1,650 26,284
Hennes & Mauritz AB Class B (Consumer Discretionary)................. 8,900 411,487
Scanem AB, Series A (Industrial & Commercial)........................ 250 9,551
Securitas AB, Series B (Industrial & Commercial)..................... 3,700 111,170
Skandinaviska Enskilda Banken., Series A (Finance)................... 24,200 285,204
Skandia Forsakrings AB (Finance)..................................... 4,700 247,737
Skanska AB, Series B (Industrial & Commercial)....................... 5,600 230,629
SKF AB, Series B (Materials)......................................... 3,600 84,388
Stora Kopparbergs Bergslags Aktiebolag, Series A (Materials)......... 14,550 193,146
Svenska Cellulosa AB, Class B (Materials)............................ 8,200 180,004
Svenska Handelsbanken, Series A (Finance)+........................... 9,800 345,218
Swedish Match AB (Consumer Staples).................................. 25,000 84,504
Trelleborg AB, Series B (Materials).................................. 6,700 93,712
Volvo AB, Series B (Consumer Discretionary).......................... 16,400 437,531
-------------
6,719,791
-------------
SWITZERLAND -- 5.4%
ABB AG (Utilities)+.................................................. 310 412,449
Adecco SA (Industrial & Commercial)+................................. 585 172,324
Alusuisse-Lonza Holdings AG (Multi-industry)......................... 180 165,255
CS Holding AG (Finance)+............................................. 6,750 987,077
Fischer (Georg) AG, Series B (Consumer Staples)...................... 25 34,367
Gebrueder Sulzer AG (Consumer Staples)+.............................. 130 85,889
Holderbank Financiere Glarus AG (Materials).......................... 215 187,435
Nestle SA (Consumer Staples)+........................................ 1,245 1,831,961
Novartis AG (Healthcare)............................................. 2,025 3,235,342
Roche Holdings AG (Healthcare)....................................... 51 776,196
Roche Holdings AG Genusscheine NPV (Healthcare)...................... 218 1,950,961
Schweizerische BankGesellschaft (Finance)+........................... 730 185,086
Schweizerische BankGesellschaft, Series B (Finance)+................. 660 840,160
Schweizerische Rueckversicherungs-Gesellschaft (Consumer
Discretionary)..................................................... 455 743,228
SGS Societe Generale de Surveillance Holding SA, Series B (Industrial
& Commercial)...................................................... 60 112,105
SMH AG (Consumer Discretionary)...................................... 165 90,149
Swiss Bank Corp. (Finance)+.......................................... 2,390 686,425
Swissair AG, Series B (Information & Entertainment)+................. 110 143,576
Valora Holding AG (Industrial & Commercial).......................... 205 43,134
Zurich Versicherungs-Gesellschaft (Finance).......................... 1,495 629,120
-------------
13,312,239
-------------
THAILAND -- 0.0%
Advance Agro PCL alien shares (Materials)+........................... 660 590
CMIC Finance & Security PCL alien shares (Finance)................... 6,700 0
Finance One PCL alien shares (Finance)............................... 37,700 0
General Finance & Securities PCL alien shares (Finance).............. 7,650 0
Land & House PCL alien shares (Real Estate)+......................... 34,119 10,384
Phoenix Pulp & Paper PCL alien shares (Materials).................... 1,600 477
TPI Polene PCL alien shares (Materials).............................. 51,400 5,108
Univest Land PCL alien shares (Real Estate).......................... 22,500 0
-------------
16,559
-------------
UNITED KINGDOM -- 24.2%
Abbey National PLC (Finance)......................................... 74,650 1,191,423
Arjo Wiggins Appleton PLC (Materials)................................ 37,325 106,535
Associated British Foods PLC (Consumer Staples)...................... 26,650 245,525
</TABLE>
---------------------
89
<PAGE> 91
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (continued)
B.A.T. Industries PLC (Multi-industry)............................... 165,361 $ 1,485,761
Barclays PLC (Finance)............................................... 90,645 2,186,131
Bass PLC (Consumer Staples).......................................... 58,700 842,677
BG PLC (Utilities)................................................... 278,735 1,336,947
BICC Group PLC (Industrial & Commercial)............................. 37,343 97,126
Blue Circle Industries PLC (Materials)............................... 69,400 398,513
BOC Group PLC (Materials)............................................ 37,395 596,828
Boots Co. PLC (Consumer Discretionary)............................... 58,700 862,505
BPB Industries PLC (Materials)....................................... 37,325 213,069
British Aerospace PLC (Industrial & Commercial)...................... 26,638 727,021
British Airways PLC (Information & Entertainment).................... 63,904 579,571
British Petroleum Co. PLC (Energy)................................... 301,728 4,127,669
British Sky Broadcasting Group PLC (Information & Entertainment)..... 85,425 634,807
British Steel PLC (Materials)........................................ 106,675 249,076
British Telecommunications PLC (Information Technology).............. 309,350 2,387,649
BTR Ltd. PLC (Industrial & Commercial)............................... 224,077 777,702
Burmah Castrol PLC (Energy).......................................... 16,029 269,902
Cable & Wireless PLC (Information Technology)........................ 133,315 1,211,338
Cadbury Schweppes PLC (Consumer Discretionary)....................... 58,696 609,660
Caradon PLC (Materials).............................................. 42,620 134,604
Centrica PLC (Utilities)+............................................ 234,600 340,746
Coats Viyella PLC (Consumer Discretionary)........................... 48,095 83,664
Commercial Union PLC (Finance)....................................... 37,348 514,078
Courtaulds PLC (Materials)........................................... 26,650 122,875
De La Rue PLC (Information & Entertainment).......................... 5,269 35,595
Emi Group PLC (Information & Entertainment).......................... 26,648 200,726
General Electric Co. PLC (Multi-industry)............................ 154,675 1,007,045
GKN PLC (Industrial & Commercial).................................... 31,975 695,014
Glaxo Wellcome PLC (Healthcare)...................................... 170,650 3,746,742
Granada Group PLC (Information & Entertainment)...................... 37,331 534,020
Grand Metropolitan PLC (Information & Entertainment)................. 73,942 673,107
Great Universal Stores PLC (Consumer Discretionary).................. 63,975 750,930
Guardian Royal Exchange PLC (Finance)................................ 42,611 205,102
Guinness PLC (Consumer Staples)...................................... 78,500 711,948
Hanson PLC (Industrial & Commercial)................................. 32,072 163,312
Harrisons & Crossfield PLC (Multi-industry).......................... 69,250 138,593
HSBC Holdings PLC (Finance).......................................... 117,418 2,861,576
Imperial Chemical Industries PLC (Materials)......................... 48,000 710,149
Ladbroke Group PLC (Information & Entertainment)..................... 64,046 290,970
Land Securities PLC (Real Estate).................................... 42,600 692,851
LASMO PLC (Energy)................................................... 42,600 189,221
Legal & General Group Ltd PLC (Finance)+............................. 63,975 545,640
Lloyds TSB Group Ltd. (Finance)...................................... 293,324 3,343,918
Lonrho PLC (Multi-industry).......................................... 42,604 66,198
Marks & Spencer PLC (Consumer Discretionary)......................... 186,600 1,919,257
MEPC PLC (Real Estate)............................................... 31,925 287,923
National Power PLC (Utilities)....................................... 74,650 712,962
Peninsular & Oriental Steam PLC (Industrial & Commercial)+........... 42,673 461,972
Pilkington PLC (Materials)........................................... 80,014 174,325
Prudential Corp. PLC (Finance)....................................... 106,710 1,149,820
Rank Group PLC (Information & Entertainment)......................... 48,100 280,671
Redland PLC (Materials).............................................. 31,999 184,287
Reed International PLC (Information & Entertainment)................. 74,650 794,912
Reuters Holdings PLC (Industrial & Commercial)....................... 90,700 1,023,265
Rexam PLC (Materials)................................................ 31,925 156,363
Rio Tinto PLC (Materials)............................................ 63,998 772,817
RMC Group PLC (Materials)............................................ 15,950 241,364
Royal & Sun Alliance Insurance Group PLC (Finance)................... 74,731 672,717
</TABLE>
- ---------------------
90
<PAGE> 92
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (continued)
Royal Bank of Scotland Group PLC (Finance)........................... 26,651 $ 306,524
Safeway PLC (Consumer Discretionary)+................................ 47,952 262,395
Sainsbury (J.) PLC (Consumer Discretionary).......................... 85,272 701,358
Schroders PLC (Finance).............................................. 10,675 307,575
Scottish Power PLC (Utilities)....................................... 53,303 432,113
Sears PLC (Consumer Discretionary)................................... 106,675 88,280
Sedgwick Group PLC (Finance)......................................... 32,071 67,706
Slough Estates PLC (Real Estate)..................................... 26,650 155,507
Smithkline Beecham PLC (Healthcare).................................. 282,683 2,625,830
Southern Electric PLC (Utilities).................................... 26,571 201,492
Tarmac PLC (Consumer Discretionary).................................. 74,737 145,157
Taylor Woodrow PLC (Industrial & Commercial)......................... 42,679 126,141
Tesco PLC (Consumer Staples)......................................... 101,305 818,685
Thames Water PLC (Industrial & Commercial)........................... 37,261 561,337
Thorn PLC (Consumer Discretionary)+.................................. 26,650 67,289
TI Group PLC (Industrial & Commercial)............................... 26,571 214,731
Unilever NV PLC (Consumer Staples)................................... 157,225 1,239,396
United Utilities PLC (Utilities)..................................... 37,347 480,004
Vodafone Group PLC (Information Technology).......................... 176,057 1,177,478
Zeneca Group PLC (Real Estate)....................................... 48,000 1,532,171
-------------
60,239,883
-------------
TOTAL COMMON STOCK (cost $193,789,194)............................... 203,569,633
-------------
PREFERRED STOCK -- 0.5%
----------------------------------------------------------------------------------------------------
AUSTRALIA -- 0.1%
News Corp., Ltd. (Information & Entertainment)....................... 31,965 155,454
-------------
AUSTRIA -- 0.0%
Bank Austria AG (Finance)............................................ 1,200 49,317
Bank Austria AG (Finance)............................................ 900 37,351
Bau Holdings AG (Consumer Discretionary)............................. 100 4,593
-------------
91,261
-------------
GERMANY -- 0.4%
RWE AG (Utilities)................................................... 9,920 399,669
SAP AG non voting (Information Technology)........................... 1,894 583,182
-------------
982,851
-------------
ITALY -- 0.0%
Fiat SpA (Consumer Discretionary).................................... 80,850 124,020
-------------
TOTAL PREFERRED STOCK (cost $1,091,560).............................. 1,353,586
-------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 0.0% AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FRANCE -- 0.0%
Establissements Economiques du Casino -- Perrachon 4.50% 2001
(Consumer Discretionary)........................................... FRF 43,400 15,753
Simco SA 3.25% 2006 (Real Estate).................................... FRF 479 41,463
Sodexho SA 6.00% 2004 (Industrial & Commercial)...................... FRF 30,000 5,162
-------------
62,378
-------------
</TABLE>
---------------------
91
<PAGE> 93
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (continued) AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ITALY -- 0.0%
Mediobanca SpA 4.50% 2000 (Finance).................................. ITL16,000,000 $ 9,104
-------------
TOTAL BONDS & NOTES (cost $71,642)................................... 71,482
-------------
RIGHTS -- 0.1%+ SHARES
----------------------------------------------------------------------------------------------------
FRANCE -- 0.0%
Sodexho SA 12/11/97 (Information & Entertainment).................... 335 4,188
-------------
ITALY -- 0.1%
Banco Ambrosiano Veneto SpA 1/2/98 (Finance)......................... 36,900 133,391
-------------
NORWAY -- 0.0%
NCL Holding ASA 12/23/97 (Information & Entertainment)............... 622 0
-------------
PORTUGAL -- 0.0%
Jeronimo Martins 12/31/97 (Consumer Staples)......................... 2,000 94,811
-------------
SPAIN -- 0.0%
Sociedad General de Aguas De Barcelona SA 12/15/97 (Utilities)....... 3,143 14
-------------
TOTAL RIGHTS (cost $0)............................................... 232,404
-------------
<CAPTION>
WARRANTS -- 0.0%+ SHARES
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FRANCE -- 0.0%
Establissements Economiques du Casino -- Perrachon 12/31/99 (Consumer
Discretionary)..................................................... 434 9,558
Compagnie Generale des Eaux 5/02/01 (Multi-industry)................. 4,504 2,754
Sodexho SA 6/7/04 (Information & Entertainment)...................... 6 1,320
-------------
13,632
-------------
HONG KONG -- 0.0%
Hongkong & Shanghai Hotels Ltd. 12/10/98 (Information &
Entertainment)..................................................... 5,666 136
Hysan Development Co., Ltd. 4/30/98 (Real Estate).................... 975 13
Oriental Press Group 10/02/98 (Information & Entertainment).......... 5,600 40
Peregrine Investment Holdings Ltd. 5/15/98 (Finance)................. 1,200 15
Stelux Holdings 2/28/98 (Consumer Discretionary)..................... 5,800 7
-------------
211
-------------
ITALY -- 0.0%
La Rinascente 11/30/99 (Finance)..................................... 2,650 3,259
Mediobanca SpA 12/31/99 (Finance).................................... 2,000 865
Riunione Adriatica de Sicurta SpA 12/16/97 (Finance)................. 250 673
Riunione Adriatica de Sicurta SpA 12/16/97 RNC (Finance)............. 150 374
-------------
5,171
-------------
</TABLE>
- ---------------------
92
<PAGE> 94
<TABLE>
<CAPTION>
WARRANTS (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
SINGAPORE -- 0.0%
Asia Foods & Properties Ltd. 7/12/02 (Consumer Staples).............. 1,700 $ 238
Straits Steamship Land Ltd. 12/12/00 (Multi-industry)................ 4,750 1,505
-------------
1,743
-------------
TOTAL WARRANTS (cost $11,963)........................................ 20,757
-------------
TOTAL INVESTMENT SECURITIES (cost $194,964,359)...................... 205,247,862
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 17.9% AMOUNT
<S> <C> <C>
----------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
REPURCHASE AGREEMENT -- 17.9%
Agreement with State Street Bank & Trust Co., bearing interest of
5.0% dated 11/28/97 to be repurchased 12/01/97 in the amount of
$44,568,563 and collateralized by $44,375,000 U.S. Treasury Notes
6.25% due 7/31/98
approximate aggregate value $45,445,788 (cost $44,550,000)......... $44,550,000 44,550,000
-------------
TOTAL INVESTMENTS --
(cost $239,514,359) 100.3% 249,797,862
Liabilities in excess of other assets -- (0.3) (871,150)
----- -------------
NET ASSETS -- 100.0% $248,926,712
===== =============
</TABLE>
-----------------------------
+ Non-income producing securities
FRF -- French Franc
ITL -- Italian Lira
---------------------
93
<PAGE> 95
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
-------------------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*AUD 1,423,993 USD 1,022,000 12/18/97 $ 49,003
*DEM 269,771 USD 157,099 01/16/98 3,666
*DEM 1,309,000 USD 748,556 01/16/98 4,058
*DEM 1,050,000 USD 600,446 01/16/98 3,255
*DEM 3,471,355 USD 1,985,106 01/16/98 10,762
*DEM 6,162,229 USD 3,523,892 01/16/98 19,103
*DEM 3,229,313 USD 1,875,000 02/12/98 35,674
DEM 4,089,516 USD 2,337,000 03/16/98 3,832
*ESP 86,733,100 USD 593,770 02/12/98 10,952
*ESP 3,831,540 USD 26,230 02/12/98 484
*FRF 5,910,284 USD 1,025,966 12/15/97 23,605
*FRF 12,083,773 USD 2,078,464 01/21/98 24,326
*FRF 1,176,727 USD 202,402 01/21/98 2,369
FRF 12,223,976 USD 2,087,000 03/16/98 3,169
*ITL 2,620,000,000 USD 1,533,150 01/21/98 17,011
*ITL 1,454,574,300 USD 851,176 01/21/98 9,444
*ITL 1,859,990,000 USD 1,088,414 01/21/98 12,076
*ITL 2,654,510,860 USD 1,553,345 01/21/98 17,235
*ITL 1,433,292,000 USD 840,000 02/19/98 10,649
*ITL 428,018,000 USD 252,269 02/19/98 4,604
JPY 1,047,959,750 USD 8,725,000 01/29/98 430,867
JPY 526,968,188 USD 4,362,500 01/29/98 191,782
JPY 199,916,000 USD 1,640,000 01/29/98 57,754
JPY 1,026,888,875 USD 8,725,000 02/05/98 589,527
JPY 526,335,625 USD 4,362,500 02/05/98 192,634
*JPY 45,479,716 USD 361,754 02/26/98 362
*JPY 19,827,084 USD 157,708 02/26/98 158
*NLG 1,295,840 USD 667,890 02/19/98 12,612
*NLG 630,778 USD 325,110 02/19/98 6,139
*USD 3,726,000 FRF 22,089,098 12/15/97 16,835
*USD 627,000 ESP 93,636,180 12/18/97 1,283
*USD 1,968,000 DEM 3,471,355 01/16/98 6,345
*USD 1,510,827 ITL 2,620,000,000 01/21/98 5,313
*USD 839,000 ITL 1,454,574,300 01/21/98 2,732
----------
1,779,620
----------
</TABLE>
- ---------------------
94
<PAGE> 96
<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>
*ESP 93,636,180 USD 626,664 12/18/97 $ (1,619)
*ESP 86,827,505 USD 581,097 12/18/97 (1,501)
*ESP 149,395,675 USD 999,837 12/18/97 (2,583)
*FRF 6,198,357 USD 1,040,377 12/15/97 (10,841)
*FRF 22,069,098 USD 3,704,236 12/15/97 (38,599)
*FRF 1,107,975 USD 186,387 01/21/98 (1,960)
*SGD 3,132,716 USD 1,939,162 03/05/98 (15,625)
*USD 1,028,681 FRF 5,910,284 12/15/97 (26,319)
*USD 1,078,819 FRF 6,198,357 12/15/97 (27,602)
*USD 597,500 ESP 86,827,505 12/18/97 (14,902)
*USD 1,025,999 ESP 149,395,675 12/18/97 (23,579)
*USD 1,027,838 AUD 1,423,993 12/19/97 (54,841)
*USD 157,282 DEM 269,771 01/16/98 (3,849)
*USD 749,842 DEM 1,309,000 01/16/98 (5,344)
*USD 602,983 DEM 1,050,000 10/16/98 (5,772)
*USD 3,592,718 DEM 6,162,229 01/16/98 (87,930)
*USD 192,748 FRF 1,107,975 01/21/98 (4,402)
*USD 2,107,500 FRF 12,083,773 01/21/98 (53,362)
*USD 204,709 FRF 1,176,727 01/21/98 (4,675)
*USD 1,100,000 ITL 1,859,990,000 01/21/98 (23,663)
*USD 1,565,603 ITL 2,654,510,860 01/21/98 (29,493)
*USD 1,883,530 DEM 3,229,313 02/12/98 (44,204)
*USD 597,500 ESP 86,733,100 02/12/98 (14,683)
*USD 26,341 ESP 3,831,540 02/12/98 (594)
*USD 847,049 ITL 1,433,292,000 02/19/98 (17,699)
*USD 252,951 ITL 428,018,000 02/19/98 (5,285)
*USD 672,500 NLG 1,295,840 02/19/98 (17,222)
*USD 326,524 NLG 630,778 02/19/98 (7,553)
*USD 364,801 JPY 45,479,716 02/26/98 (3,409)
*USD 157,972 JPY 19,827,084 02/26/98 (422)
USD 792,028 JPY 99,407,416 02/26/98 (2,114)
*USD 1,967,168 SGD 3,132,716 03/05/98 (12,382)
USD 47,523 JPY 5,937,000 03/16/98 (213)
----------
(564,241)
----------
Net Unrealized Appreciation....................... $ 1,215,379
==========
</TABLE>
-----------------------------
* Represents open forward foreign currency contracts and
offsetting or partially offsetting open forward foreign currency
contracts that do not have additional market risk but have
continued counterparty settlement risk.
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
AUD -- Australian Dollar FRF -- French Franc NLG -- Netherlands Guilder
DEM -- Deutsche Mark ITL -- Italian Lira SGD -- Singapore Dollar
ESP -- Spanish Peseta JPY -- Japanese Yen USD -- United States Dollar
</TABLE>
See Notes to Financial Statements
---------------------
95
<PAGE> 97
- ---------------------
SUNAMERICA SERIES TRUST
REAL ESTATE PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
<TABLE>
<CAPTION>
COMMON STOCK -- 84.0% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 8.6%
Leisure & Tourism -- 8.6%
Bristol Hotel Co.+..................................................... 7,300 $ 180,675
CapStar Hotel Co.+..................................................... 25,500 954,656
Host Marriott Corp.+................................................... 7,300 151,931
Premier Parks, Inc.+................................................... 12,400 483,600
Servico, Inc.+......................................................... 39,500 683,844
WHG Resorts & Casinos, Inc.+........................................... 3,800 84,550
-------------
2,539,256
-------------
REAL ESTATE -- 75.4%
Real Estate Companies -- 7.0%
Boardwalk Equities, Inc.+.............................................. 26,200 298,940
Catellus Development Corp.+............................................ 50,800 939,800
Crescent Operating, Inc.+.............................................. 1,780 29,815
Security Capital Group, Inc., Class B+................................. 7,800 250,575
The Rouse Co........................................................... 2,000 63,000
TrizecHahn Corp........................................................ 21,700 501,812
Real Estate Investment Trusts -- 68.4%
Alexandria Real Estate Equities, Inc................................... 14,100 438,862
Ambassador Apartments, Inc. Class A.................................... 18,400 366,850
Apartment Investment & Management Co................................... 4,900 173,338
Arden Reality, Inc..................................................... 3,200 97,400
Avalon Properties, Inc................................................. 5,700 175,275
Bay Apartment Communities, Inc......................................... 10,200 407,362
Beacon Properties Corp................................................. 14,100 634,500
Boston Properties, Inc................................................. 26,100 851,512
Boykin Lodging Co...................................................... 7,000 181,563
California Reality Corp................................................ 21,700 861,219
Camden Property Trust.................................................. 10,000 326,875
CarrAmerica Realty Corp................................................ 2,000 60,250
CCA Prison Reality Trust............................................... 5,100 181,687
CenterPoint Properties Corp............................................ 12,100 400,812
Chelsea GCA Realty, Inc................................................ 2,500 95,000
Crescent Real Estate Equities Co....................................... 25,300 974,050
Duke Realty Investments, Inc........................................... 6,200 142,600
Equity Office Properties Trust......................................... 5,700 184,894
Equity Residential Properties Trust.................................... 1,100 55,000
Essex Property Trust, Inc.............................................. 18,200 657,475
FelCor Suite Hotels, Inc............................................... 18,100 657,256
First Industrial Reality Trust, Inc.................................... 18,000 635,625
First Union Real Estate Investments.................................... 9,900 147,263
Gables Residential Trust............................................... 7,300 198,469
Glenborough Reality Trust, Inc......................................... 21,800 588,600
Golf Trust of America, Inc............................................. 14,300 386,100
Home Properties of New York, Inc....................................... 5,600 148,750
IRT Property Co........................................................ 10,800 130,275
Irvine Apartment Communities, Inc...................................... 8,800 273,350
JDN Realty Corp........................................................ 17,000 528,062
Kilroy Reality Corp.................................................... 6,400 168,000
Kimco Realty Corp...................................................... 5,500 189,062
Liberty Property Trust................................................. 28,700 801,806
National Golf Properties, Inc.......................................... 4,400 139,700
</TABLE>
- ---------------------
96
<PAGE> 98
<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE (continued)
Real Estate Investment Trusts (continued)
Oasis Residential, Inc................................................. 1,000 $ 21,813
Pacific Gulf Properties, Inc........................................... 3,800 85,025
Parkway Properties, Inc................................................ 21,900 721,331
Patriot American Hospitality, Inc...................................... 25,312 791,000
Post Properties, Inc................................................... 12,200 471,225
Prentiss Properties Trust.............................................. 10,300 266,512
Public Storage, Inc.................................................... 24,800 685,100
Reckson Associates Realty Corp......................................... 21,100 560,469
Security Capital Pacific Trust......................................... 8,642 210,109
Simon DeBartolo Group, Inc............................................. 18,100 591,644
SL Green Reality Corp.................................................. 9,700 252,200
Starwood Lodging Trust................................................. 16,600 890,175
Storage USA, Inc....................................................... 6,000 234,375
Sunstone Hotel Investors, Inc.......................................... 29,900 525,119
The Macerich Co........................................................ 6,600 179,025
Tower Reality Trust Inc.+.............................................. 6,100 148,688
United States Restaurant Properties, Inc............................... 9,850 235,169
Urban Shopping Centers, Inc............................................ 3,200 106,600
Vornado Realty Trust................................................... 20,300 909,694
Weingarten Realty Investors............................................ 1,800 75,038
-------------
22,303,095
-------------
TOTAL COMMON STOCK (cost $23,518,812).................................. 24,842,351
-------------
PREFERRED STOCK -- 3.7%
----------------------------------------------------------------------------------------------------
REAL ESTATE -- 3.7%
Real Estate Companies -- 1.0%
Oasis Residential, Inc. convertible, Series A 2.25%.................... 700 17,500
The Rouse Co. convertible, Series B 3.0%............................... 5,400 270,000
Real Estate Investment Trusts -- 2.7%
Equity Residential Properties Trust convertible, Series E 7.0%......... 24,200 674,575
Security Capital Pacific Trust convertible, Series A 1.75%............. 400 13,350
Vornado Realty Trust convertible, Series A 6.50%....................... 1,700 113,794
-------------
1,089,219
-------------
TOTAL PREFERRED STOCK (cost $1,090,413)................................ 1,089,219
-------------
TOTAL INVESTMENT SECURITIES (cost $24,609,225)......................... 25,931,570
-------------
PRINCIPAL
SHORT-TERM SECURITIES -- 12.6% AMOUNT
----------------------------------------------------------------------------------------------------
FEDERAL AGENCY OBLIGATIONS -- 12.6%
Federal Home Loan Bank Consolidated Discount Note 5.35% due 12/1/97.... $ 130,000 130,000
Federal Home Loan Mortgage Discount Notes 5.46% due 12/1/97............ 3,600,000 3,600,000
-------------
TOTAL SHORT-TERM SECURITIES (cost $3,730,000).......................... 3,730,000
-------------
TOTAL INVESTMENTS --
(cost $28,339,225) 100.3% 29,661,570
Liabilities in excess of other assets -- (0.3) (96,712)
------ -------------
NET ASSETS -- 100.0% $29,564,858
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
See Notes to Financial Statements
---------------------
97
<PAGE> 99
- ---------------------
SUNAMERICA SERIES TRUST
AGGRESSIVE GROWTH
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
<TABLE>
<CAPTION>
COMMON STOCK -- 94.8% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 6.6%
Apparel & Textiles -- 1.5%
Gap, Inc.............................................................. 10,000 $ 536,875
Liz Claiborne, Inc.................................................... 10,000 502,500
Tefron Ltd.+.......................................................... 26,200 550,200
Housing -- 0.6%
D.R. Horton, Inc...................................................... 25,000 445,313
Toll Brothers, Inc.+.................................................. 10,000 241,250
Retail -- 4.5%
The Neiman Marcus Group, Inc.+........................................ 25,000 823,437
Amazon.com., Inc.+.................................................... 7,000 346,500
Ames Department Stores, Inc.+......................................... 65,000 1,105,000
Costco Cos., Inc.+.................................................... 5,000 221,563
CVS Corp.............................................................. 13,000 862,875
Kohl's Corp.+......................................................... 5,000 361,875
Office Depot, Inc.+................................................... 15,500 366,187
Woolworth Corp.+...................................................... 25,000 540,625
------------
6,904,200
------------
CONSUMER STAPLES -- 4.7%
Food, Beverage & Tobacco -- 1.7%
800-JR Cigar, Inc.+................................................... 20,000 550,000
Beringer Wine Estates Holdings, Inc., Class B+........................ 4,900 159,250
Chiquita Brands International, Inc.................................... 25,000 423,438
Fresh Del Monte Produce, Inc.+........................................ 15,000 221,250
Ryan's Family Steak Houses, Inc.+..................................... 45,000 399,375
Household Products -- 3.0%
A.C. Moore Arts & Crafts, Inc.+....................................... 2,000 30,000
Dial Corp. New........................................................ 60,000 1,162,500
Furniture Brands International, Inc.+................................. 10,000 195,625
Scotts Co., Class A+.................................................. 7,000 204,750
Silgan Holdings, Inc.+................................................ 12,000 417,000
Steiner Leisure Ltd.+................................................. 15,000 431,250
Sunbeam Corp.......................................................... 15,000 660,937
------------
4,855,375
------------
ENERGY -- 15.8%
Energy Services -- 13.5%
Anadarko Petroleum Corp............................................... 10,000 650,000
Baker Hughes, Inc..................................................... 10,000 418,750
Cliffs Drilling Co.+.................................................. 17,600 976,800
Cooper Cameron Corp.+................................................. 20,000 1,218,750
Core Laboratories NV+................................................. 30,000 1,087,500
Diamond Offshore Drilling, Inc........................................ 15,400 768,075
Eagle Geophysical, Inc.+.............................................. 3,000 48,750
EVI, Inc.+............................................................ 10,000 514,375
Falcon Drilling Co., Inc.+............................................ 40,000 1,290,000
Friede Goldman International, Inc.+................................... 50,000 1,487,500
Global Marine, Inc.+.................................................. 10,000 263,125
Marine Drilling Co., Inc. +........................................... 20,000 455,000
</TABLE>
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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY (continued)
Energy Services (continued)
Nabors Industries, Inc. +............................................. 20,000 $ 701,250
Noble Drilling Corp.+................................................. 28,000 841,750
Patterson Energy, Inc.+............................................... 20,200 742,350
Rowan Cos., Inc.+..................................................... 10,000 340,000
Seagull Energy Corp.+................................................. 10,000 228,125
Tidewater, Inc........................................................ 3,000 168,187
Trico Marine Services, Inc.+.......................................... 36,400 1,012,375
UTI Energy Corp.+..................................................... 15,000 420,000
Varco International, Inc.+............................................ 6,400 327,600
Energy Sources -- 2.3%
ENSCO International, Inc. +........................................... 26,000 929,500
Kerr-McGee Corp....................................................... 10,000 663,125
KN Energy, Inc........................................................ 10,000 467,500
Smith International, Inc.+............................................ 5,000 320,000
------------
16,340,387
------------
FINANCE -- 19.7%
Banks -- 9.4%
Bankers Trust New York Corp........................................... 17,490 2,073,658
First American Corp................................................... 33,800 1,673,100
First Chicago Corp.................................................... 10,000 782,500
First International Bancorp, Inc...................................... 14,500 197,563
Hamilton Bancorp, Inc.+............................................... 20,000 562,500
Hibernia Corp. Class A................................................ 15,000 271,875
ING Groep NV.......................................................... 15,115 615,936
Long Island Bancorp, Inc.............................................. 5,367 252,920
PNC Bank Corp......................................................... 26,400 1,420,650
Popular Inc........................................................... 16,000 852,000
Summit Bancorp........................................................ 22,500 1,049,062
Financial Services -- 9.0%
Allmerica Financial Corp.............................................. 5,000 242,500
American Capital Strategies Ltd.+..................................... 18,000 333,000
Associates First Capital Corp., Class A............................... 5,000 321,250
Countrywide Credit Industries, Inc.................................... 17,600 720,500
Crestar Financial Corp................................................ 10,000 513,750
Donaldson, Lufkin & Jenrette, Inc..................................... 10,000 728,750
Federal Agricultural Mortgage Corp.+.................................. 4,100 271,625
Hambrecht & Quist Group, Inc.+........................................ 10,000 383,750
Healthcare Financial Partners, Inc.+.................................. 25,400 838,200
Interra Financial, Inc................................................ 9,000 496,687
Jefferies Group, Inc.................................................. 400 28,350
Legg Mason, Inc....................................................... 9,900 478,913
Lehman Brothers Holdings, Inc......................................... 18,000 910,125
Merrill Lynch & Co., Inc.............................................. 5,000 350,938
Metris Cos., Inc.+.................................................... 9,500 361,000
New Century Financial Corp.+.......................................... 25,000 328,125
PaineWebber Group, Inc................................................ 15,000 504,375
Reliance Group Holdings, Inc.......................................... 50,000 637,500
Stirling Cooke Brown Holdings......................................... 24,000 582,000
T&W Financial Corp.+.................................................. 15,000 241,875
</TABLE>
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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance -- 1.3%
Conseco, Inc.......................................................... 10,000 $ 465,625
Hartford Life, Inc.................................................... 15,000 575,625
Penn Treaty American Corp.+........................................... 10,000 325,000
------------
20,391,227
------------
HEALTHCARE -- 9.8%
Drugs -- 2.3%
IDEC Pharmaceuticals Corp.+........................................... 20,000 698,750
LifeCell Corp.+....................................................... 9,000 43,875
Mylan Laboratories, Inc............................................... 49,000 1,087,188
Watson Pharmaceuticals, Inc.+......................................... 20,000 595,000
Health Services -- 4.9%
Access Health, Inc.+.................................................. 10,000 297,500
Advance Paradigm, Inc.+............................................... 10,000 296,250
Arterial Vascular Engineering, Inc.+.................................. 20,000 1,107,500
Assisted Living Concepts, Inc.+....................................... 30,000 513,750
CORR Therapeutics, Inc.+.............................................. 20,000 455,000
HEALTHSOUTH Corp.+.................................................... 20,000 525,000
Neurex Corp.+......................................................... 20,000 312,500
NovaCare, Inc.+....................................................... 50,000 618,750
PhyCor, Inc.+......................................................... 10,000 246,250
Vision Twenty One, Inc.+.............................................. 70,000 669,375
Medical Products -- 2.6%
Guidant Corp.......................................................... 12,500 803,125
Gulf South Medical Supply, Inc. +..................................... 15,000 489,375
Osteotech, Inc.+...................................................... 10,000 302,500
Protein Design Labs, Inc.+............................................ 20,000 840,000
Rexall Sundown, Inc.+................................................. 10,000 237,500
------------
10,139,188
------------
INDUSTRIAL & COMMERCIAL -- 10.2%
Aerospace & Military Technology -- 0.4%
REMEC, Inc.+.......................................................... 17,000 397,375
Business Services -- 6.2%
American Disposal Services, Inc.+..................................... 20,000 712,500
Budget Group, Inc., Class A+.......................................... 5,000 177,500
Checkfree Corp.+...................................................... 15,000 392,812
Corrections Corp. of America+......................................... 5,000 173,125
Culligan Water Technologies, Inc.+.................................... 15,000 673,125
Hvide Marine, Inc., Class A+.......................................... 3,000 84,938
Jackson Hewitt, Inc.+................................................. 25,000 1,676,562
JLK Direct Distribution, Inc.+........................................ 12,600 358,312
NCO Group, Inc.+...................................................... 5,000 189,375
Personnel Group Of America, Inc.+..................................... 10,000 365,625
Philip Services Corp.+................................................ 10,000 158,125
Pre-Paid Legal Services, Inc.+........................................ 10,000 283,125
Seitel, Inc.+......................................................... 15,000 577,500
Snyder Communications, Inc............................................ 5,000 169,688
Transcrypt International, Inc.+....................................... 5,200 120,900
Vestcom International, Inc.+.......................................... 15,000 303,750
Machinery -- 1.0%
IRI International Corp.+.............................................. 2,000 32,250
Kennametal, Inc....................................................... 20,000 1,053,750
</TABLE>
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COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Transportation -- 2.6%
Airborne Freight Corp................................................. 10,000 $ 636,875
Caliber System, Inc................................................... 25,000 1,335,938
CNF Transportation, Inc............................................... 15,000 652,500
Consolidated Freightways Corp.+....................................... 4,000 62,500
------------
10,588,150
------------
INFORMATION & ENTERTAINMENT -- 4.9%
Broadcasting & Media -- 2.6%
Cinar Films, Inc., Class B+........................................... 22,000 907,500
Nextel Communications, Inc., Class A+................................. 20,000 505,000
Tele-Communications Liberty Media Group, Inc., Series A+.............. 15,000 506,250
TV Azteca SA de CV ADR+............................................... 6,000 124,125
Univision Communications, Inc., Class A+.............................. 10,000 665,625
Entertainment Products -- 0.4%
Mattel, Inc........................................................... 10,000 400,625
Leisure & Tourism -- 1.9%
CapStar Hotel Co.+.................................................... 20,000 748,750
Carnival Corp., Class A............................................... 10,000 540,625
Four Seasons Hotels, Inc.............................................. 7,000 224,875
Ryanair Holdings PLC ADR+............................................. 16,200 433,350
------------
5,056,725
------------
INFORMATION TECHNOLOGY -- 18.0%
Communication Equipment -- 2.1%
CIENA Corp.+.......................................................... 5,000 270,000
Digital Microwave Corp.+.............................................. 20,000 315,000
Tekelec, Inc.+........................................................ 20,000 757,500
Tellabs, Inc.+........................................................ 6,000 312,000
World Access, Inc.+................................................... 20,000 490,000
Computers & Business Equipment -- 0.2%
Ikon Office Solutions, Inc............................................ 7,500 228,281
Electronics -- 4.9%
Aehr Test Systems+.................................................... 4,000 36,500
Alpha Industries, Inc.+............................................... 10,000 186,250
DII Group, Inc.+...................................................... 20,000 447,500
Jabil Circuit, Inc.+.................................................. 15,000 721,875
Lernout & Hauspie Speech Products NV+................................. 10,000 479,375
Level One Communications, Inc.+....................................... 20,000 835,000
PMC-Sierra, Inc.+..................................................... 20,000 550,000
RF Micro Devices, Inc.+............................................... 10,000 141,250
Tandy Corp............................................................ 20,000 860,000
Uniphase Corp.+....................................................... 5,000 200,625
Vitesse Semiconductor Corp.+.......................................... 5,500 246,125
Yurie System, Inc.+................................................... 15,000 373,125
</TABLE>
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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Software -- 8.4%
Applied Voice Technology, Inc.+....................................... 10,000 $ 280,000
Baan Co. NV+.......................................................... 5,000 357,500
Cambridge Technology Partners, Inc.+.................................. 10,000 388,750
Check Point Software Technologies, Ltd.+.............................. 10,000 451,250
Computer Task Group, Inc.............................................. 19,300 607,950
Compuware Corp.+...................................................... 30,000 1,048,125
Concord Communications, Inc.+......................................... 2,000 43,750
HBO & Co.+............................................................ 20,000 897,500
Keane, Inc.+.......................................................... 15,000 475,313
Legato Systems, Inc.+................................................. 10,000 381,250
Lycos Inc.+........................................................... 20,000 611,250
New Era of Networks, Inc.+............................................ 10,000 127,500
Novell, Inc.+......................................................... 15,000 138,750
QuadraMed Corp.+...................................................... 25,000 653,125
The Learning Company Inc.+............................................ 20,000 362,500
Veritas DGC, Inc.+.................................................... 15,000 600,000
Veritas Software Co................................................... 15,000 655,781
Yahoo!, Inc.+......................................................... 12,500 639,062
Telecommunications -- 2.4%
At Home Corp., Series A+.............................................. 10,000 206,250
COLT Telecommunications Group PLC ADR+................................ 5,000 217,500
Globalstar Telecommunications Ltd.+................................... 10,000 495,625
Lucent Technologies, Inc.............................................. 5,000 400,625
Pacific Gateway Exchange, Inc.+....................................... 10,000 388,750
Teleport Communications Group+........................................ 15,000 735,000
-------------
18,613,512
-------------
REAL ESTATE -- 3.1%
Real Estate Companies -- 0.6%
Security Capital Group, Inc., Class B+................................ 10,000 321,250
Westfield America, Inc................................................ 20,000 333,750
Real Estate Investment Trusts -- 2.5%
CCA Prison Reality Trust.............................................. 5,000 178,125
Equity Office Properties Trust........................................ 10,000 324,375
Innkeepers USA Trust.................................................. 20,000 321,250
Ocwen Asset Investment Corp........................................... 12,500 227,344
Starwood Lodging Trust................................................ 15,000 804,375
Vornado Realty Trust.................................................. 15,000 672,187
-------------
3,182,656
-------------
UTILITIES -- 2.0%
Gas & Pipeline Utilities -- 1.7%
Aquila Gas Pipeline Corp.............................................. 50,000 706,250
TransCoastal Marine Services, Inc.+................................... 12,000 234,000
Western Gas Resources, Inc............................................ 35,000 800,626
Telephone -- 0.3%
McLeodUSA, Inc., Class A+............................................. 10,000 370,000
-------------
2,110,876
-------------
TOTAL COMMON STOCK (cost $83,284,878)................................. 98,182,296
-------------
</TABLE>
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<CAPTION>
PRINCIPAL
U.S. GOVERNMENT AND AGENCIES -- 2.3% AMOUNT VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT & AGENCIES -- 2.3%
United States Treasury Bonds 6.13% 2027............................... $1,200,000 $ 1,213,500
United States Treasury Notes 6.13% 2007............................... 1,200,000 1,223,064
-------------
2,436,564
-------------
TOTAL U.S. GOVERNMENT AND AGENCIES (cost $2,424,112).................. 2,436,564
-------------
TOTAL INVESTMENT SECURITIES (cost $85,708,990)........................ 100,618,860
-------------
REPURCHASE AGREEMENT -- 5.8%
----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 5.8%
Joint Repurchase Agreement Account (Note 3)
(cost $5,956,000)................................................... 5,956,000 5,956,000
-------------
TOTAL INVESTMENTS --
(cost $91,664,990) 102.9% 106,574,860
Liabilities in excess of other assets -- (2.9) (2,971,396)
------ -------------
NET ASSETS -- 100.0% $103,603,464
====== ==============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
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SUNAMERICA SERIES TRUST
EMERGING MARKETS
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1997
<TABLE>
COMMON STOCK -- 82.2% SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
ARGENTINA -- 5.4%
Banco Frances del Rio de la Plata SA ADR (Finance).................... 17,500 $ 157,558
Irsa Inversiones y Represenaciones SA GDR (Real Estate)............... 2,400 73,350
Perez Cos. SA (Multi-industry)........................................ 31,000 222,041
Telefonica de Argentina SA ADR (Utilities) GDR........................ 11,000 363,687
YPF Sociedad Anonima ADR (Energy)..................................... 8,000 268,500
------------
1,085,136
------------
BRAZIL -- 9.6%
Brazil Realty SA Empreendimentos & Participacoes GDR (Real
Estate)(1)*......................................................... 2,900 50,750
Centrais Electricas de Santa Brasileiras SA (Utilities)............... 1,900 198,678
Companhia Siderurgica Nacional (Materials)............................ 2,100,000 56,793
Companhia Siderurgica Nacional ADR (Materials)........................ 2,500 67,608
Companhia Vale do Rio Doce (Materials)................................ 18,000 322,897
Compania Brasileira de Distribuidora GDR (Industrial & Commercial).... 15,700 233,660
Compania Energetica de Minas ADR non voting (Materials)............... 10,400 506,251
Petroleo Brasileiro SA ADR (Energy)................................... 9,100 198,516
Telecomunicacoes Brasileirassa SA ADR (Information Technology)........ 2,750 287,031
------------
1,922,184
------------
CANADA -- 2.1%
Bell Canada International, Inc. (Utilities)+.......................... 5,000 72,734
Hurricane Hydrocarbons Ltd. (Energy).................................. 21,700 133,307
Super Sol Ltd. ADR (Materials)........................................ 15,700 219,800
------------
425,841
------------
CHILE -- 4.2%
Compania de Telecomunicaciones de Chile SA ADR (Utilities)............ 10,000 270,625
Distribucion y Servicio D&S SA ADR (Consumer Discretionary)+.......... 13,600 237,150
Linea Aerea Nacional Chile SA ADR (Information & Entertainment)....... 9,700 122,462
Madeco SA ADR (Materials)............................................. 11,800 199,125
------------
829,362
------------
CHINA -- 1.3%
Beijing Datang Pow (Utilities)........................................ 156,000 72,145
Guangdong Kelon Electric Holdings (Industrial & Commercial)........... 100,000 111,251
Qingling Motors Co., Ltd. (Consumer Discretionary).................... 139,000 74,172
------------
257,568
------------
HONG KONG -- 2.7%
Asia Satellite Telecom Holdings Ltd. (Information Technology)+........ 29,000 63,400
Cheung Kong Holdings Ltd. (Real Estate)............................... 40,000 93,140
China Foods Holdings (Consumer Staples)............................... 116,000 40,891
Guangnan Holdings (Consumer Staples).................................. 70,000 52,521
Hutchison Whampoa Ltd. (Multi-industry)............................... 18,000 119,918
New World Development Co. Ltd. (Real Estate)+......................... 53,900 106,331
Ng Fung Hong (Consumer Staples)....................................... 56,000 54,694
------------
530,895
------------
</TABLE>
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COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
INDIA -- 4.2%
BSES Ltd. GDR (Industrial & Commercial)............................... 5,600 $ 75,600
Gujarat Ambuja Cements Ltd. GDR (Industrial & Commercial)............. 14,000 112,000
Hindalco Industries Ltd. GDR (Materials)*............................. 4,200 94,500
Indian Hotel Co., Ltd. (Information & Entertainment).................. 2,400 45,600
Larsen & Torbo GDR (Industrial & Commercial).......................... 3,000 29,250
Ranbaxy Laboratories Ltd. (Healthcare)................................ 4,100 95,325
Reliance Industries GDS (Materials)*.................................. 14,000 108,850
State Bank of India GDR (Finance)..................................... 8,200 108,650
Tata Engineering & Locomotive Co., Ltd. GDR (Consumer
Discretionary)...................................................... 10,000 81,378
Videsh Sanchar Nigam Ltd. GDR (Information Technology)*............... 7,000 92,750
------------
843,903
------------
INDONESIA -- 2.3%
Astra International, Inc. (Consumer Discretionary).................... 50,000 26,045
Gudang Garam Perus (Consumer Staples)................................. 30,000 63,742
PT Astra Agro Niaga Lestari Tbk (Energy)(1)........................... 77,000 32,721
PT Indah Kiat Pulp & Paper Corp. (Materials).......................... 237,500 55,346
PT Indorama Synthetics (Consumer Discretionary)....................... 70,000 35,984
PT Indostat alien (Information Technology)+........................... 31,000 70,329
PT Telekomunikasi Indonesia ADR alien (Information Technology)+....... 8,000 117,000
Ramayana Lestari Sentosa (Consumer Discretionary)..................... 45,000 52,125
------------
453,292
------------
KOREA -- 1.5%
Daewoo Heavy Industries (Industrial & Commercial)..................... 7,000 31,962
Housing & Commercial Bank, Korea GDR (Finance)*....................... 7,100 41,712
Korea Mobile Telecommunications Corp. (Information & Entertainment)... 100 32,591
LG Electronics, Inc. (Consumer Goods)................................. 3,000 33,604
Samsung Electronics Co. (Information Technology)...................... 4,500 161,223
------------
301,092
------------
MALAYSIA -- 2.6%
Berjaya Sports Toto Berhad (Information & Entertainment).............. 57,000 124,399
IJM Corp. Berhad (Industrial & Commercial)............................ 102,000 37,829
KFC Holdings (Information & Entertainment)............................ 58,000 86,042
Malakoff Berhad (Industrial & Commercial)............................. 53,000 83,161
Malaysian Assurance (Finance)+........................................ 44,000 51,466
PPB Oil Palms Berhad (Consumer Staples)............................... 65,000 56,002
Telekom Malaysia Berhad (Information Technology)...................... 36,000 80,108
------------
519,007
------------
MEXICO -- 17.8%
Alfa SA de CV, Class A (Multi-industry)+.............................. 66,000 495,793
Cemex SA de CV Class B ADR (Materials)................................ 71,100 349,722
Cifra SA de CV (Consumer Staples)..................................... 87,000 182,188
Corporacion Moctezuma SA de CV (Materials)............................ 66,700 79,259
Fomento Economico Mexicano SA de CV, Class B (Consumer Staples)+...... 61,000 496,853
G Accion SA de CV ADR (Real Estate)(1)*............................... 7,400 69,375
Grupo Financiero Banamex-Accival SA de CV., Class B (Finance)......... 100,000 219,151
Grupo Imsa SA de CV ADR (Multi-industry).............................. 12,300 319,031
Grupo Televisa SA de CV, ADR (Information & Entertainment)............ 11,000 407,000
Kimberly-Clark de Mexico SA de CV ADR (Materials)..................... 44,600 196,026
Panamerican Beverages, Inc., Class A ADR (Consumer Staples)........... 13,500 462,375
Telefonos de Mexico SA ADR (Utilities)................................ 5,800 287,100
------------
3,563,873
------------
</TABLE>
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<TABLE>
<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
PHILIPPINES -- 2.9%
Ayala Land, Inc. Class B (Real Estate)................................ 292,300 $ 114,996
Belle Corp. (Real Estate)............................................. 746,000 35,859
Benpres Holdings Corp. GDR (Industrial & Commercial)(1)............... 9,000 25,875
International Container Systems, Inc. (Materials)+.................... 413,400 67,421
Ionics Circuit, Inc. (Information Technology)......................... 60,200 34,880
Manila Electric Co. (Utilities)....................................... 14,000 48,469
Philippine Long Distance Telephone Co. (Utilities).................... 2,200 52,876
Philippine Long Distance Telephone Co. ADR (Utilities)................ 3,700 91,575
SM Prime Holdings (Real Estate)....................................... 480,000 75,537
Solid Group, Inc. (Industrial & Commercial)........................... 650,000 34,220
------------
581,708
------------
POLAND -- 1.5%
Bank Handlowy Warsza (Finance)........................................ 12,200 143,144
KGHM Polska Miedz SA (Materials)...................................... 19,000 156,750
------------
299,894
------------
PORTUGAL -- 2.7%
Colep-Companhia Portuguesa de Embalagens (Materials).................. 17,100 284,683
Electricidad de Portugal SA (Utilities)............................... 5,200 93,987
Investec Consultoria International SA (Information & Entertainment)... 5,200 158,857
------------
537,527
------------
RUSSIA -- 4.3%
Ao Mosenergo ADR (Energy)(1)*......................................... 4,400 132,000
Ao Tatneft ADR (Utilities)*........................................... 2,200 270,990
Oil Co Lukoil ADR (Utilities)......................................... 2,300 184,288
Tatneft (Energy) ADR*................................................. 700 86,224
Unified Energy Systems Russia GDR (Utilities)(1)...................... 8,000 182,000
------------
855,502
------------
SINGAPORE -- 0.4%
Asia Pulp & Paper Ltd. ADR (Materials)+............................... 7,250 78,844
------------
SOUTH AFRICA -- 5.9%
Energy Africa Ltd GDR (Energy)*....................................... 3,600 81,000
Engen Botswana Ltd. (Energy).......................................... 39,600 222,106
First National Bank (Finance)......................................... 30,700 259,072
Gencor (Materials).................................................... 7,000 10,878
Liberty Life Association of Africa Ltd. (Finance)..................... 13,200 334,177
Sasol Ltd. (Multi-industry)........................................... 26,200 263,968
------------
1,171,201
------------
TAIWAN, PROVINCE OF CHINA -- 3.7%
Acer, Inc. GDR (Information Technology)............................... 7,950 60,420
ASE Test Ltd. (Information Technology)+............................... 2,850 159,600
Asustek Computer, Inc. GDR (Information Technology)*.................. 15,000 229,971
China Steel Corp. ADR (Materials)*.................................... 4,700 68,710
China Steel Corp. GDS (Materials)..................................... 4,800 68,520
Siliconware Precision Industries Co. GDR (Information Technology)..... 11,605 159,278
------------
746,499
------------
</TABLE>
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<CAPTION>
COMMON STOCK (continued) SHARES VALUE
----------------------------------------------------------------------------------------------------
<S> <C> <C>
THAILAND -- 1.2%
Advanced Information Services PCL alien shares (Information &
Entertainment)...................................................... 9,000 $ 46,957
Electricity Generating PCL (Utilities)................................ 35,000 67,391
Industrial Finance Corp. of Thailand alien shares (Finance)........... 56,000 32,348
PTT Exploration & Production PCL alien shares (Energy)................ 8,000 88,646
------------
235,342
------------
TURKEY -- 2.3%
Dogan Sirketler Grubu Holdings SA (Multi-industry).................... 2,180,000 82,434
Haci Omer Sabanci Holdings SA ADR (Finance)........................... 12,900 183,825
Yapi Ve Kredi Bankasi SA ADR (Finance)................................ 3,700 117,938
Yapi Ve Kredi Bankasi SA GDR (Finance)................................ 2,400 76,500
------------
460,697
------------
UNITED KINGDOM -- 2.2%
Billiton PLC (Materials).............................................. 60,000 148,194
Lonrho PLC (Multi-industry)........................................... 95,800 143,942
Ramco Energy PLC-ADR (Energy)......................................... 11,400 147,487
------------
439,623
------------
UNITED STATES -- 0.3%
At Entertainment, Inc. (Information & Entertainment).................. 6,000 65,250
------------
VENEZUELA -- 1.1%
Compania Anon Nacional Tele de Venezuela ADR (Information &
Entertainment)...................................................... 3,400 134,300
Siderurgica Venezolana "Sivensa" SA (Industrial & Commercial)......... 18,000 81,000
------------
215,300
------------
TOTAL COMMON STOCK (cost $19,682,170)................................. 16,419,540
------------
PREFERRED STOCK -- 2.4%
----------------------------------------------------------------------------------------------------
BRAZIL -- 2.4%
Banco Bradesco SA (Finance)........................................... 26,000,000 189,850
Banco Itau SA (Finance) 8.00%......................................... 450,000 201,208
Multicanal Participacoes SA ADR (Information Technology).............. 17,600 83,600
------------
474,658
------------
TOTAL PREFERRED STOCK (cost $683,083)................................. 474,658
------------
PRINCIPAL
BONDS & NOTES -- 2.0% AMOUNT
----------------------------------------------------------------------------------------------------
INDIA -- 0.4%
Mahindra + Mahindra Ltd. 5.00% 2001+.................................. $ 90,000 83,952
------------
TAIWAN, PROVINCE OF CHINA -- 1.6%
Delta Electronic, Inc. convertible, zero coupon 2004.................. 100,000 127,030
Formosa Chemicals & Fibre Co. convertible, 1.75% 2001................. 110,000 117,150
Nan Ya Plastics Corp. convertible, 1.75% 2001......................... 60,000 67,464
------------
311,644
------------
TOTAL BONDS & NOTES (cost $492,234)................................... 395,596
------------
</TABLE>
---------------------
107
<PAGE> 109
<TABLE>
<CAPTION>
RIGHTS -- 0.0% SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------------------
KOREA -- 0.0%
Housing & Commercial Bank, Korea GDR (Finance)*(1).................... 423 $ 0
------------
</TABLE>
<TABLE>
<CAPTION>
WARRANTS -- 0.0%+
<S> <C> <C>
----------------------------------------------------------------------------------------------------
PHILIPPINES -- 0.0%
Belle Corp (Real Estate) 12/31/00(1).................................. 129,200 0
------------
TOTAL INVESTMENT SECURITIES (cost $20,857,487)........................ 17,289,794
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 10.0% AMOUNT
<S> <C> <C>
----------------------------------------------------------------------------------------------------
FEDERAL AGENCY OBLIGATIONS -- 10.0%
Federal Home Loan Mortgage Discount Notes 5.50% due 12/11/97.......... $ 1,000,000 998,472
Federal Home Loan Mortgage Discount Notes 5.47% due 12/17/97.......... 1,000,000 997,569
------------
TOTAL SHORT-TERM SECURITIES (cost $1,996,041)......................... 1,996,041
------------
</TABLE>
<TABLE>
<CAPTION>
REPURCHASE AGREEMENT -- 3.9%
<S> <C> <C>
----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 3.9%
Agreement with SBC Warburg, bearing interest of 5.67% dated 11/28/97,
to be repurchased 12/1/97 in the amount of $784,370 and
collateralized by $528,000 U.S. Treasury Notes 10.625% due 08/15/15
approximate aggregate value $799,918 (cost $784,000)................ 784,000 784,000
TOTAL INVESTMENTS --
(cost $23,637,528) 100.5% 20,069,835
Liabilities in excess of other assets -- (0.5) (90,742)
------- ------------
NET ASSETS -- 100.0% $19,979,093
======= =============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
(1) Fair valued securities; see Note 2
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
GDS -- Global Depository Shares
See Notes to Financial Statements
- ---------------------
108
<PAGE> 110
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1997
<TABLE>
<CAPTION>
CASH CORPORATE HIGH-YIELD
MANAGEMENT GLOBAL BOND BOND BOND
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*........................ $ -- $ 80,131,563 $60,368,655 $186,227,046
Short-term securities*.................................. 141,966,188 3,047,000 1,287,574 --
Repurchase agreements (cost equals market).............. 13,341,000 -- -- 11,659,000
Cash.................................................... 98 73 237 1,449,115
Foreign currency........................................ -- -- -- --
Receivables for--
Dividends and accrued interest......................... 765,335 2,126,992 1,280,323 3,412,574
Fund shares sold....................................... 554,205 63,875 161,673 378,474
Foreign currency contracts............................. -- 9,797,009 -- --
Sales of investments................................... -- 6,486,159 59,512 5
Prepaid expenses........................................ 6,304 32,422 1,750 5,592
Deferred organizational expenses........................ 1,220 686 686 672
Unrealized appreciation on forward foreign currency
contracts.............................................. -- 2,053,926 -- --
------------ ------------ ----------- ------------
156,634,350 103,739,705 63,160,410 203,132,478
------------ ------------ ----------- ------------
LIABILITIES:
Payables for--
Fund shares redeemed................................... 378,564 25,974 15,392 102,928
Management fees........................................ 74,645 50,539 33,758 102,750
Foreign currency contracts............................. -- 9,857,325 -- --
Purchases of investments............................... -- 3,923,947 785,637 7,220,901
Unrealized depreciation on forward foreign currency
contracts.............................................. -- 761,859 -- --
Other accrued expenses.................................. 61,687 77,538 54,005 66,893
------------ ------------ ----------- ------------
514,896 14,697,182 888,792 7,493,472
------------ ------------ ----------- ------------
NET ASSETS.............................................. $156,119,454 $ 89,042,523 $62,271,618 $195,639,006
============ ============ =========== ============
Shares of beneficial interest outstanding (unlimited
shares authorized)..................................... 14,542,029 7,733,604 5,395,202 16,552,238
Net asset value per share............................... $ 10.74 $ 11.51 $ 11.54 $ 11.82
============ ============ =========== ============
COMPOSITION OF NET ASSETS:
Capital paid in......................................... $149,355,823 $ 80,711,428 $57,398,970 $178,477,367
Accumulated undistributed net investment income......... 6,768,071 5,020,328 3,269,106 13,972,776
Accumulated undistributed net realized gain (loss) on
investments, future contracts and options contracts.... (684) 1,605,904 (274,142) 1,523,707
Unrealized appreciation (depreciation) on investments... (3,756) 423,598 1,877,684 1,665,156
Unrealized foreign exchange gain on other assets and
liabilities............................................ -- 1,281,265 -- --
------------ ------------ ----------- ------------
$156,119,454 $ 89,042,523 $62,271,618 $195,639,006
============ ============ =========== ============
---------------
* Cost
Investment securities.................................. $ -- $ 79,707,965 $58,491,965 $184,561,890
============ ============ =========== ============
Short-term securities.................................. $141,969,944 $ 3,047,000 $ 1,286,580 $ --
============ ============ =========== ============
BALANCED/
<CAPTION> PHOENIX
WORLDWIDE SUNAMERICA INVESTMENT
HIGH INCOME BALANCED COUNSEL
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value*........................ $119,757,721 $42,169,455 $ 85,111,395
Short-term securities*.................................. -- -- 15,319,522
Repurchase agreements (cost equals market).............. 8,097,000 2,364,000 --
Cash.................................................... 232 1,595 3,977
Foreign currency........................................ 59 -- --
Receivables for--
Dividends and accrued interest......................... 2,303,684 246,894 321,617
Fund shares sold....................................... 176,382 270,950 140,918
Foreign currency contracts............................. -- -- --
Sales of investments................................... 851,147 -- 1,451,011
Prepaid expenses........................................ 3,157 871 2,928
Deferred organizational expenses........................ -- -- --
Unrealized appreciation on forward foreign currency
contracts.............................................. -- -- --
------------ ----------- ------------
131,189,382 45,053,765 102,351,368
------------ ----------- ------------
LIABILITIES:
Payables for--
Fund shares redeemed................................... 58,525 8,251 25,768
Management fees........................................ 98,981 26,829 52,534
Foreign currency contracts............................. -- -- --
Purchases of investments............................... 5,748,483 362,849 6,502,832
Unrealized depreciation on forward foreign currency
contracts.............................................. -- -- --
Other accrued expenses.................................. 59,072 34,680 49,198
------------ ----------- ------------
5,965,061 432,609 6,630,332
------------ ----------- ------------
NET ASSETS.............................................. $125,224,321 $44,621,156 $ 95,721,036
============ =========== ============
Shares of beneficial interest outstanding (unlimited
shares authorized)..................................... 9,486,861 3,317,577 6,489,618
Net asset value per share............................... $ 13.20 $ 13.45 $ 14.75
============ =========== ============
COMPOSITION OF NET ASSETS:
Capital paid in......................................... $113,325,866 $38,981,052 $ 79,442,975
Accumulated undistributed net investment income......... 6,387,381 461,406 2,153,212
Accumulated undistributed net realized gain (loss) on
investments, future contracts and options contracts.... 7,631,219 1,613,564 9,547,417
Unrealized appreciation (depreciation) on investments... (2,120,145) 3,565,134 4,577,432
Unrealized foreign exchange gain on other assets and
liabilities............................................ -- -- --
------------ ----------- ------------
$125,224,321 $44,621,156 $ 95,721,036
============ =========== ============
---------------
* Cost
Investment securities.................................. $121,877,866 $38,604,321 $ 80,533,932
============ =========== ============
Short-term securities.................................. $ -- $ -- $ 15,319,553
============ =========== ============
</TABLE>
See Notes to Financial Statements
---------------------
109
<PAGE> 111
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES (continued)
NOVEMBER 30, 1997
<TABLE>
<CAPTION>
ASSET GROWTH- FEDERATED
ALLOCATION UTILITY INCOME VALUE
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*........................ $496,830,860 $21,645,823 $565,192,040 $56,166,372
Short-term securities*.................................. 10,631,862 2,801,000 61,326,116 3,130,000
Repurchase agreements (cost equals market).............. 52,504,000 -- -- --
Cash.................................................... 945,534 882 459 823
Foreign currency........................................ -- 877 -- --
Receivables for--
Dividends and accrued interest......................... 2,742,334 55,313 568,010 103,415
Fund shares sold....................................... 791,649 48,346 958,580 153,937
Sales of investments................................... 12,276,079 110,198 -- 273,156
Variation margin on futures contracts.................. -- -- -- --
Prepaid expenses........................................ 37,340 209 15,996 1,099
Deferred organizational expenses........................ 686 211 672 --
Due from Adviser........................................ -- 1,169 -- --
-------------------------------------------------------------
576,760,344 24,664,028 628,061,873 59,828,802
-------------------------------------------------------------
LIABILITIES:
Payables for--
Fund shares redeemed................................... 128,952 9,738 268,316 10,747
Management fees........................................ 255,970 13,108 288,149 34,009
Purchases of investments............................... 49,666,164 241,720 5,342,717 720,993
Variation margin on futures contracts.................. 2,404 -- 3,200 --
Unrealized depreciation on currency swap agreement...... 8,410 -- -- --
Other accrued expenses.................................. 113,049 33,335 96,995 39,109
-------------------------------------------------------------
50,174,949 297,901 5,999,377 804,858
-------------------------------------------------------------
NET ASSETS.............................................. $526,585,395 $24,366,127 $622,062,496 $59,023,944
=============================================================
Shares of beneficial interest outstanding (unlimited
shares authorized)..................................... 32,487,541 1,887,046 29,882,556 4,247,184
Net asset value per share............................... $ 16.21 $ 12.91 $ 20.82 $ 13.90
=============================================================
COMPOSITION OF NET ASSETS:
Capital paid in......................................... $413,144,255 $21,043,201 $438,003,681 $50,587,529
Accumulated undistributed net investment income......... 11,185,024 416,193 4,138,634 322,155
Accumulated undistributed net realized gain on
investments, future contracts and options contracts.... 51,414,744 853,295 31,704,944 1,769,566
Unrealized appreciation on investments.................. 50,593,662 2,053,447 148,026,437 6,344,694
Unrealized foreign exchange gain (loss) on other assets
and liabilities........................................ 627 (9) -- --
Unrealized appreciation on futures contracts and
currency swap agreements............................... 247,083 -- 188,800 --
-------------------------------------------------------------
$526,585,395 $24,366,127 $622,062,496 $59,023,944
=============================================================
---------------
* Cost
Investment securities.................................. $446,121,825 $19,592,376 $417,165,603 $49,821,678
=============================================================
Short-term securities.................................. $ 10,747,235 $ 2,801,000 $ 61,326,116 $ 3,130,000
=============================================================
<CAPTION>
GROWTH/
PHOENIX
VENTURE PUTNAM INVESTMENT
VALUE GROWTH COUNSEL
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value*........................ $1,012,053,997 $222,541,578 $215,405,981
Short-term securities*.................................. 126,103,921 -- 2,214,752
Repurchase agreements (cost equals market).............. -- 12,228,000 --
Cash.................................................... 736,601 221 2,557
Foreign currency........................................ -- -- --
Receivables for--
Dividends and accrued interest......................... 804,672 164,008 127,576
Fund shares sold....................................... 1,873,756 399,157 98,218
Sales of investments................................... -- 5,462,669 3,842,655
Variation margin on futures contracts.................. -- -- --
Prepaid expenses........................................ 35,473 6,843 7,371
Deferred organizational expenses........................ -- 672 1,248
Due from Adviser........................................ -- -- --
------------- ----------- -----------
1,141,608,420 240,803,148 221,700,358
------------- ----------- -----------
LIABILITIES:
Payables for--
Fund shares redeemed................................... 249,291 194,394 49,264
Management fees........................................ 665,592 155,558 115,904
Purchases of investments............................... 465,655 5,665,775 2,972,257
Variation margin on futures contracts.................. -- -- --
Unrealized depreciation on currency swap agreement...... -- -- --
Other accrued expenses.................................. 174,595 61,207 67,115
-------------- ------------ ------------
1,555,133 6,076,934 3,204,540
-------------- ------------ ------------
NET ASSETS.............................................. $1,140,053,287 $234,726,214 $218,495,818
============== ============ ============
Shares of beneficial interest outstanding (unlimited
shares authorized)..................................... 53,109,248 12,258,209 13,988,236
Net asset value per share............................... $ 21.47 $ 19.15 $ 15.62
============== ============ ============
COMPOSITION OF NET ASSETS:
Capital paid in......................................... $ 849,021,743 $145,094,700 $155,204,329
Accumulated undistributed net investment income......... 7,883,673 333,117 1,533,739
Accumulated undistributed net realized gain on
investments, future contracts and options contracts.... 41,535,418 43,684,393 36,995,013
Unrealized appreciation on investments.................. 241,611,999 45,614,004 24,762,737
Unrealized foreign exchange gain (loss) on other assets
and liabilities........................................ 454 -- --
Unrealized appreciation on futures contracts and
currency swap agreements............................... -- -- --
-------------- ------------ ------------
$1,140,053,287 $234,726,214 $218,495,818
--------------- ============== ============ ============
* Cost
Investment securities.................................. $ 770,441,998 $176,927,574 $190,643,244
============== ============ ============
Short-term securities.................................. $ 126,103,921 $ -- $ 2,214,752
============== ============ ============
</TABLE>
See Notes to Financial Statements
- ---------------------
110
<PAGE> 112
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES (continued)
NOVEMBER 30, 1997
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
ALLIANCE GLOBAL GROWTH AND DIVERSIFIED
GROWTH EQUITIES INCOME EQUITIES
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*........................ $698,295,444 $327,787,768 $40,266,738 $205,247,862
Short-term securities*.................................. 8,973,304 11,473,000 1,994,201 --
Repurchase agreements (cost equals market).............. -- -- 917,000 44,550,000
Cash.................................................... 813 385,923 392 16,023
Foreign currency........................................ -- 345,112 -- 437,864
Receivables for--
Dividends and accrued interest......................... 325,867 557,501 58,554 671,626
Fund shares sold....................................... 1,278,511 264,049 199,328 305,909
Foreign currency contracts............................. -- -- 596,320 4,052,939
Sales of investments................................... 1,924,478 362,414 208,346 787,282
Prepaid expenses........................................ 17,936 10,891 615 8,524
Deferred organizational expenses........................ 672 672 5,859 --
Unrealized appreciation on forward foreign currency
contracts.............................................. -- 1,468,715 161 1,779,620
Due from Adviser........................................ -- -- 14,713 --
------------ ------------ ----------- ------------
710,817,025 342,656,045 44,262,227 257,857,649
------------ ------------ ----------- ------------
LIABILITIES:
Payables for--
Fund shares redeemed................................... 244,428 177,177 24,750 58,637
Management fees........................................ 323,021 210,552 32,596 202,250
Foreign currency contracts............................. -- -- 594,996 4,045,331
Purchases of investments............................... 5,598,029 -- 542,281 3,724,039
Variation margin on futures contract................... 600 -- -- --
Unrealized depreciation on forward foreign currency
contracts.............................................. -- 378,320 125,209 564,241
Other accrued expenses.................................. 117,680 250,802 98,433 336,439
------------ ------------ ----------- ------------
6,283,758 1,016,851 1,418,265 8,930,937
------------ ------------ ----------- ------------
NET ASSETS.............................................. $704,533,267 $341,639,194 $42,843,962 $248,926,712
============ ============ =========== ============
Shares of beneficial interest outstanding (unlimited
shares authorized)..................................... 31,224,923 21,381,428 4,115,661 21,967,802
Net asset value per share............................... $ 22.56 $ 15.98 $ 10.41 $ 11.33
============ ============ =========== ============
COMPOSITION OF NET ASSETS:
Capital paid in......................................... $519,726,389 $275,796,920 $42,824,015 $236,980,243
Accumulated undistributed net investment income......... 1,954,191 1,870,601 188,142 7,621,922
Accumulated undistributed net realized gain (loss) on
investments, future contracts and options contracts.... 81,181,841 25,413,638 219,703 (7,167,648)
Unrealized appreciation (depreciation) on investments... 101,678,346 37,474,152 (263,491) 10,283,503
Unrealized foreign exchange gain (loss) on other assets
and liabilities........................................ -- 1,083,883 (124,407) 1,208,692
Unrealized depreciation on futures contracts............ (7,500) -- -- --
------------ ------------ ----------- ------------
$704,533,267 $341,639,194 $42,843,962 $248,926,712
============ ============ =========== ============
---------------
* Cost
Investment securities.................................. $596,617,098 $290,313,616 $40,530,229 $194,964,359
============ ============ =========== ============
Short-term securities.................................. $ 8,973,304 $ 11,473,000 $ 1,994,201 $ --
============ ============ =========== ============
<CAPTION>
REAL AGGRESSIVE EMERGING
ESTATE GROWTH MARKETS
-----------------------------------------------------------------------------------------------------------------------
<S> <C><C> <C> <C>
ASSETS:
Investment securities, at value*........................ $25,931,570 $100,618,860 $17,289,794
Short-term securities*.................................. 3,730,000 -- 1,996,041
Repurchase agreements (cost equals market).............. -- 5,956,000 784,000
Cash.................................................... 3,137 300 5,153
Foreign currency........................................ -- -- --
Receivables for--
Dividends and accrued interest......................... 13,233 38,215 16,583
Fund shares sold....................................... 120,720 370,728 32,252
Foreign currency contracts............................. -- -- 370,739
Sales of investments................................... -- 1,548,048 267,432
Prepaid expenses........................................ 422 1,146 390
Deferred organizational expenses........................ 5,859 1,177 5,859
Unrealized appreciation on forward foreign currency
contracts.............................................. -- -- --
Due from Adviser........................................ -- -- 18,257
----------- ------------ -----------
29,804,941 108,534,474 20,786,500
----------- ------------ -----------
LIABILITIES:
Payables for--
Fund shares redeemed................................... 6,381 86,408 2,709
Management fees........................................ 19,802 64,448 19,791
Foreign currency contracts............................. -- -- 372,893
Purchases of investments............................... 181,402 4,735,724 331,558
Variation margin on futures contract................... -- -- --
Unrealized depreciation on forward foreign currency
contracts.............................................. -- -- --
Other accrued expenses.................................. 32,498 44,430 80,456
----------- ------------ -----------
240,083 4,931,010 807,407
----------- ------------ -----------
NET ASSETS.............................................. $29,564,858 $103,603,464 $19,979,093
=========== ============ ===========
Shares of beneficial interest outstanding (unlimited
shares authorized)..................................... 2,565,065 8,810,027 2,488,005
Net asset value per share............................... $ 11.53 $ 11.76 $ 8.03
=========== ============ ===========
COMPOSITION OF NET ASSETS:
Capital paid in......................................... $27,980,419 $ 92,229,280 $24,387,385
Accumulated undistributed net investment income......... 239,716 -- 170,105
Accumulated undistributed net realized gain (loss) on
investments, future contracts and options contracts.... 22,378 (3,535,686) (1,010,674)
Unrealized appreciation (depreciation) on investments... 1,322,345 14,909,870 (3,567,693)
Unrealized foreign exchange gain (loss) on other assets
and liabilities........................................ -- -- (30)
Unrealized depreciation on futures contracts............ -- -- --
----------- ------------ -----------
$29,564,858 $103,603,464 $19,979,093
=========== ============ ===========
---------------
* Cost
Investment securities.................................. $24,609,225 $ 85,708,990 $20,857,487
=========== ============ ===========
Short-term securities.................................. $ 3,730,000 $ -- $ 1,996,041
=========== ============ ===========
</TABLE>
See Notes to Financial Statements
---------------------
111
<PAGE> 113
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1997
<TABLE>
<CAPTION>
BALANCED/
PHOENIX
CASH GLOBAL CORPORATE HIGH-YIELD WORLDWIDE SUNAMERICA INVESTMENT
MANAGEMENT BOND BOND BOND HIGH INCOME BALANCED COUNSEL
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCOME:
Interest..................... $7,617,078 $4,309,054 $3,644,019 $15,031,427 $ 7,808,222 $ 508,106 $ 2,375,878
Dividends.................... -- -- 55,418 84,459 139,982 212,724 453,642
--------------------------------------------------------------------------------------------
Total income*............ 7,617,078 4,309,054 3,699,437 15,115,886 7,948,204 720,830 2,829,520
--------------------------------------------------------------------------------------------
EXPENSES:
Management fees.............. 718,297 550,533 325,988 1,000,566 915,682 188,724 558,675
Custodian fees............... 62,095 79,040 53,830 63,910 33,230 36,045 66,585
Reports to investors......... 22,755 22,675 13,035 35,555 23,980 6,920 19,715
Auditing fees................ 21,825 30,285 25,845 24,815 31,065 21,430 20,370
Amortization of
organizational expenses.... 7,172 3,953 3,953 3,822 -- -- --
Legal fees................... 2,026 1,003 569 1,632 1,279 827 1,026
Trustees' fees............... 1,350 586 356 928 964 331 740
Interest expense............. -- -- -- 963 -- -- --
Other expenses............... 5,670 2,590 1,654 3,881 2,025 1,215 2,476
--------------------------------------------------------------------------------------------
Total expenses............. 841,190 690,665 425,230 1,136,072 1,008,225 255,492 669,587
--------------------------------------------------------------------------------------------
Net investment income.......... 6,775,888 3,618,389 3,274,207 13,979,814 6,939,979 465,338 2,159,933
--------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCIES:
Net realized gain on
investments#............... 925 2,772,480 505,509 9,993,528 8,159,728 1,624,801 9,676,697
Net realized gain (loss) on
futures contracts and
options contracts.......... -- (11,209) -- -- -- -- 24,811
Net realized foreign exchange
gain (loss) on other assets
and liabilities............ -- 758,012 -- -- (120,494) -- --
Change in unrealized
appreciation/ depreciation
on investments............. 2,661 (1,617,087) 718,565 (3,228,125) (5,021,473) 2,742,326 (1,288,697)
Change in unrealized foreign
exchange gain on other
assets and liabilities..... -- 956,961 -- -- 4,477 -- --
--------------------------------------------------------------------------------------------
Net realized and unrealized
gain on investments and
foreign currencies........... 3,586 2,859,157 1,224,074 6,765,403 3,022,238 4,367,127 8,412,811
--------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.... $6,779,474 $6,477,546 $4,498,281 $20,745,217 $ 9,962,217 $4,832,465 $10,572,744
============================================================================================
---------------
* Net of foreign withholding
taxes on interest and
dividends of................. $ -- $ 31,949 $ 4,216 $ 5,542 $ 1,997 $ 1,879 $ 1,276
============================================================================================
# Net of foreign withholding
taxes on capital gains of.... $ -- $ -- $ -- $ -- $ 12,564 $ -- $ --
============================================================================================
</TABLE>
See Notes to Financial Statements
- ---------------------
112
<PAGE> 114
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF OPERATIONS (continued)
FOR THE YEAR ENDED NOVEMBER 30, 1997
<TABLE>
<CAPTION>
GROWTH/
PHOENIX
ASSET GROWTH- FEDERATED VENTURE PUTNAM INVESTMENT
ALLOCATION UTILITY INCOME VALUE VALUE GROWTH COUNSEL
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCOME:
Interest.................. $10,731,204 $ 46,740 $ 2,045,423 $ 82,192 $ 4,033,128 $ 435,543 $ 1,002,237
Dividends................. 4,181,705 517,013 5,129,759 570,525 10,198,724 1,612,893 1,994,394
------------------------------------------------------------------------------------------------
Total income*......... 14,912,909 563,753 7,175,182 652,717 14,231,852 2,048,436 2,996,631
------------------------------------------------------------------------------------------------
EXPENSES:
Management fees........... 2,556,963 100,647 2,784,063 254,016 5,952,702 1,565,910 1,299,894
Custodian fees............ 169,075 38,915 124,620 38,930 196,340 72,505 83,605
Reports to investors...... 71,425 4,171 82,450 8,880 131,790 44,240 45,415
Auditing fees............. 19,265 20,820 20,180 21,500 30,240 19,305 18,545
Amortization of
organizational
expenses................ 3,953 88 3,821 -- -- 3,822 3,821
Legal fees................ 4,222 620 4,278 725 8,410 2,637 1,761
Trustees' fees............ 3,925 164 4,460 397 7,623 1,578 1,605
Other expenses............ 9,701 1,018 9,484 1,251 14,155 5,322 6,063
------------------------------------------------------------------------------------------------
Total expenses before
reimbursement......... 2,838,529 166,443 3,033,356 325,699 6,341,260 1,715,319 1,460,709
Expenses reimbursed by
the investment
adviser............... -- (25,537) -- -- -- -- --
------------------------------------------------------------------------------------------------
Net investment income....... 12,074,380 422,847 4,141,826 327,018 7,890,592 333,117 1,535,922
------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCIES:
Net realized gain on
investments............. 52,482,439 861,442 26,372,396 1,792,042 41,598,668 43,697,799 36,951,244
Net realized gain on
futures contracts and
options contracts....... 1,244,312 -- 6,303,783 -- -- -- 194,755
Net realized foreign
exchange gain (loss) on
other assets and
liabilities............. (21,372) (3,129) 65 (1) 1,065 -- 22
Change in unrealized
appreciation/
depreciation on
investments............. 14,589,518 1,765,756 80,954,336 5,148,585 150,492,499 278,511 (2,566,236)
Change in unrealized
foreign exchange gain
(loss) on other assets
and liabilities......... 627 (148) -- -- 113 -- --
Change in unrealized
appreciation/
depreciation on futures
contracts, written
option contracts and
currency swap
agreements.............. (1,014,448) -- (773,581) -- -- -- --
------------------------------------------------------------------------------------------------
Net realized and unrealized
gain on investments and
foreign currencies........ 67,281,076 2,623,921 112,856,999 6,940,626 192,092,345 43,976,310 34,579,785
------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS................ $79,355,456 $3,046,768 $116,998,825 $7,267,644 $199,982,937 $44,309,427 $36,115,707
================================================================================================
---------------
* Net of foreign withholding
taxes on interest and
dividends of.............. $ 4,004 $ 5,251 $ 22,784 $ 4,090 $ 76,913 $ 6,691 $ 50,798
================================================================================================
</TABLE>
See Notes to Financial Statements
---------------------
113
<PAGE> 115
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF OPERATIONS (continued)
FOR THE YEAR ENDED NOVEMBER 30, 1997
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
ALLIANCE GLOBAL GROWTH AND DIVERSIFIED REAL AGGRESSIVE EMERGING
GROWTH EQUITIES INCOME+ EQUITIES ESTATE+ GROWTH MARKETS+
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCOME:
Interest.................. $ 268,071 $ 659,468 $ 100,461 $ 903,536 $ 59,009 $ 219,165 $ 74,404
Dividends................. 5,137,345 4,033,068 176,163 3,711,005 272,067 296,137 182,454
------------------------------------------------------------------------------------------------
Total income*......... 5,405,416 4,692,536 276,624 4,614,541 331,076 515,302 256,858
------------------------------------------------------------------------------------------------
EXPENSES:
Management fees........... 3,145,937 2,337,577 125,310 2,127,386 58,800 509,688 99,436
Custodian fees............ 154,780 452,185 94,075 640,475 18,225 51,540 74,350
Reports to investors...... 97,675 74,135 2,345 59,015 1,720 20,275 1,885
Auditing fees............. 22,605 27,750 28,785 29,575 18,795 21,285 28,815
Amortization of
organizational
expenses................ 3,821 3,821 515 -- 515 -- 515
Legal fees................ 5,368 2,830 690 2,438 690 1,110 690
Trustees' fees............ 4,807 2,700 335 1,765 82 652 144
Other expenses............ 10,066 7,633 937 3,249 922 1,763 923
------------------------------------------------------------------------------------------------
Total expenses before
reimbursement......... 3,445,059 2,908,631 252,992 2,863,903 99,749 606,313 206,758
Expenses reimbursed by
the investment
adviser............... -- -- (52,507) -- (7,874) -- (55,614)
------------------------------------------------------------------------------------------------
Net investment income
(loss).................... 1,960,357 1,783,905 76,139 1,750,638 239,201 (91,011) 105,714
------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCIES:
Net realized gain (loss)
on investments#......... 81,524,855 26,101,178 219,703 (6,297,980) 22,378 (2,829,784) (913,203)
Net realized gain on
futures contracts....... 1,379,640 -- -- -- -- -- --
Net realized foreign
exchange gain (loss) on
other assets and
liabilities............. -- 69,950 111,488 6,707,753 -- -- (33,595)
Change in unrealized
appreciation/
depreciation on
investments............. 34,851,529 7,084,155 (263,491) 3,910,822 1,322,345 11,818,657 (3,567,693)
Change in unrealized
foreign exchange gain
(loss) on other assets
and liabilities......... -- 1,082,247 (124,407) 211,844 -- -- (30)
Change in unrealized
appreciation/
depreciation on futures
contracts............... (405,000) -- -- -- -- -- --
------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments and
foreign currencies...... 117,351,024 34,337,530 (56,707) 4,532,439 1,344,723 8,988,873 (4,514,521)
------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS................ $119,311,381 $36,121,435 $ 19,432 $ 6,283,077 $1,583,924 $ 8,897,862 $(4,408,807)
================================================================================================
---------------
* Net of foreign withholding
taxes on interest and
dividends of.............. $ 24,621 $ 419,620 $ 15,908 $ 546,208 $ 261 $ 780 $ 6,795
================================================================================================
# Net of foreign withholding
taxes on capital gains
of........................ $ -- $ -- $ -- $ 33,058 $ -- $ -- $ 1,462
================================================================================================
+ Commenced operations June
2, 1997
</TABLE>
See Notes to Financial Statements
- ---------------------
114
<PAGE> 116
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED NOVEMBER 30, 1997
<TABLE>
<CAPTION>
CASH CORPORATE HIGH-YIELD
MANAGEMENT GLOBAL BOND BOND BOND
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.................................. $ 6,775,888 $ 3,618,389 $ 3,274,207 $ 13,979,814
Net realized gain on investments....................... 925 2,772,480 505,509 9,993,528
Net realized gain (loss) on futures contracts and
options contracts..................................... -- (11,209) -- --
Net realized foreign exchange gain (loss) on other
assets and liabilities................................ -- 758,012 -- --
Change in unrealized appreciation/depreciation on
investments........................................... 2,661 (1,617,087) 718,565 (3,228,125)
Change in unrealized foreign exchange gain/loss on
other assets and liabilities.......................... -- 956,961 -- --
----------------------------------------------------------------
Net increase in net assets resulting from operations... 6,779,474 6,477,546 4,498,281 20,745,217
----------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.................. (6,330,000) (4,705,000) (2,010,000) (8,890,000)
Distributions from net realized gain on investments... -- (275,000) -- --
----------------------------------------------------------------
Total dividends and distributions to shareholders...... (6,330,000) (4,980,000) (2,010,000) (8,890,000)
----------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 811,621,512 33,606,421 33,721,704 154,271,836
Proceeds from shares issued for reinvestment of
dividends and distributions........................... 6,330,000 4,980,000 2,010,000 8,890,000
Cost of shares repurchased............................. (753,528,328) (19,262,861) (13,155,774) (92,607,140)
----------------------------------------------------------------
Net increase in net assets resulting from capital share
transactions.......................................... 64,423,184 19,323,560 22,575,930 70,554,696
----------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS........................... 64,872,658 20,821,106 25,064,211 82,409,913
NET ASSETS:
Beginning of period.................................... 91,246,796 68,221,417 37,207,407 113,229,093
----------------------------------------------------------------
End of period.......................................... $ 156,119,454 $ 89,042,523 $ 62,271,618 $195,639,006
=======================================================================
---------------
Accumulated undistributed net investment income........ $ 6,768,071 $ 5,020,328 $ 3,269,106 $ 13,972,776
=======================================================================
Shares issued and repurchased:
Sold................................................... 76,477,014 3,008,825 3,044,110 13,781,218
Issued in reinvestment of dividends and
distributions......................................... 611,004 466,729 190,883 837,889
Repurchased............................................ (71,025,735) (1,726,496) (1,194,160) (8,319,515)
----------------------------------------------------------------
Net increase........................................... 6,062,283 1,749,058 2,040,833 6,299,592
=======================================================================
<CAPTION>
BALANCED/
PHOENIX
WORLDWIDE SUNAMERICA INVESTMENT
HIGH INCOME BALANCED COUNSEL
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income.................................. $ 6,939,979 $ 465,338 $ 2,159,933
Net realized gain on investments....................... 8,159,728 1,624,801 9,676,697
Net realized gain (loss) on futures contracts and
options contracts..................................... -- -- 24,811
Net realized foreign exchange gain (loss) on other
assets and liabilities................................ (120,494) -- --
Change in unrealized appreciation/depreciation on
investments........................................... (5,021,473) 2,742,326 (1,288,697)
Change in unrealized foreign exchange gain/loss on
other assets and liabilities.......................... 4,477 -- --
------------ ---------- -----------
Net increase in net assets resulting from operations... 9,962,217 4,832,465 10,572,744
------------ ---------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.................. (3,530,000) (60,000) (1,265,000)
Distributions from net realized gain on investments... (3,570,000) (40,000) (2,245,000)
------------ ---------- -----------
Total dividends and distributions to shareholders...... (7,100,000) (100,000) (3,510,000)
------------ ---------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 122,351,745 35,534,375 34,361,684
Proceeds from shares issued for reinvestment of
dividends and distributions........................... 7,100,000 100,000 3,510,000
Cost of shares repurchased............................. (56,294,138) (5,969,478) (19,233,950)
------------ ---------- -----------
Net increase in net assets resulting from capital share
transactions.......................................... 73,157,607 29,664,897 18,637,734
------------ ---------- -----------
TOTAL INCREASE IN NET ASSETS........................... 76,019,824 34,397,362 25,700,478
NET ASSETS:
Beginning of period.................................... 49,204,497 10,223,794 70,020,558
------------ ---------- -----------
End of period.......................................... $125,224,321 $44,621,156 $ 95,721,036
============ ========== ===========
---------------
Accumulated undistributed net investment income........ $ 6,387,381 $ 461,406 $ 2,153,212
============ ========== ===========
Shares issued and repurchased:
Sold................................................... 9,588,842 2,875,391 2,475,607
Issued in reinvestment of dividends and
distributions......................................... 606,319 8,651 269,378
Repurchased............................................ (4,394,496) (485,362) (1,391,401)
------------ ---------- -----------
Net increase........................................... 5,800,665 2,398,680 1,353,584
============ ========== ===========
</TABLE>
See Notes to Financial Statements
---------------------
115
<PAGE> 117
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (continued)
FOR THE YEAR ENDED NOVEMBER 30, 1997
<TABLE>
<CAPTION>
ASSET GROWTH- FEDERATED
ALLOCATION UTILITY INCOME VALUE
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.................................. $ 12,074,380 $ 422,847 $ 4,141,826 $ 327,018
Net realized gain on investments....................... 52,482,439 861,442 26,372,396 1,792,042
Net realized gain on futures contracts and options
contracts............................................. 1,244,312 -- 6,303,783 --
Net realized foreign exchange gain (loss) on other
assets and liabilities................................ (21,372) (3,129) 65 (1)
Change in unrealized appreciation/depreciation on
investments........................................... 14,589,518 1,765,756 80,954,336 5,148,585
Change in unrealized foreign exchange gain/loss on
other assets and liabilities.......................... 627 (148) -- --
Change in unrealized appreciation/depreciation on
futures contracts, written options contracts and
currency swap agreements.............................. (1,014,448) -- (773,581) --
---------------------------------------------------------------
Net increase in net assets resulting from operations... 79,355,456 3,046,768 116,998,825 7,267,644
---------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.................. (9,550,000) (85,000) (2,770,000) (45,000)
Distributions from net realized gain on investments... (21,740,000) (21,000) (15,835,000) --
---------------------------------------------------------------
Total dividends and distributions to shareholders...... (31,290,000) (106,000) (18,605,000) (45,000)
---------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 198,007,930 19,909,225 281,329,957 53,713,595
Proceeds from shares issued for reinvestment of
dividends and distributions........................... 31,290,000 106,000 18,605,000 45,000
Cost of shares repurchased............................. (67,166,417) (4,888,513) (101,729,611) (14,416,823)
---------------------------------------------------------------
Net increase in net assets resulting from capital share
transactions.......................................... 162,131,513 15,126,712 198,205,346 39,341,772
---------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS........................... 210,196,969 18,067,480 296,599,171 46,564,416
NET ASSETS:
Beginning of period.................................... 316,388,426 6,298,647 325,463,325 12,459,528
---------------------------------------------------------------
End of period.......................................... $526,585,395 $24,366,127 $ 622,062,496 $ 59,023,944
===============================================================
---------------
Accumulated undistributed net investment income........ $ 11,185,024 $ 416,193 $ 4,138,634 $ 322,155
===============================================================
Shares issued and repurchased:
Sold................................................... 12,863,082 1,709,480 14,863,689 4,266,674
Issued in reinvestment of dividends and
distributions......................................... 2,220,724 9,628 1,105,466 3,896
Repurchased............................................ (4,387,167) (417,938) (5,441,625) (1,147,636)
---------------------------------------------------------------
Net increase........................................... 10,696,639 1,301,170 10,527,530 3,122,934
===============================================================
</TABLE>
<TABLE>
<CAPTION>
GROWTH/
PHOENIX
VENTURE PUTNAM INVESTMENT
VALUE GROWTH COUNSEL
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income.................................. $ 7,890,592 $ 333,117 $ 1,535,922
Net realized gain on investments....................... 41,598,668 43,697,799 36,951,244
Net realized gain on futures contracts and options
contracts............................................. -- -- 194,755
Net realized foreign exchange gain (loss) on other
assets and liabilities................................ 1,065 -- 22
Change in unrealized appreciation/depreciation on
investments........................................... 150,492,499 278,511 (2,566,236)
Change in unrealized foreign exchange gain/loss on
other assets and liabilities.......................... 113 -- --
Change in unrealized appreciation/depreciation on
futures contracts, written options contracts and
currency swap agreements.............................. -- -- --
-------------- ----------- ------------
Net increase in net assets resulting from operations... 199,982,937 44,309,427 36,115,707
-------------- ----------- ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.................. (3,390,000) -- (1,325,000)
Distributions from net realized gain on investments... (9,745,000) (5,465,000) (16,255,000)
-------------- ----------- ------------
Total dividends and distributions to shareholders...... (13,135,000) (5,465,000) (17,580,000)
-------------- ----------- ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 607,026,485 84,068,227 36,491,255
Proceeds from shares issued for reinvestment of
dividends and distributions........................... 13,135,000 5,465,000 17,580,000
Cost of shares repurchased............................. (183,369,506) (53,724,485) (40,478,722)
-------------- ----------- ------------
Net increase in net assets resulting from capital share
transactions.......................................... 436,791,979 35,808,742 13,592,533
-------------- ------------ ------------
TOTAL INCREASE IN NET ASSETS........................... 623,639,916 74,653,169 32,128,240
NET ASSETS:
Beginning of period.................................... 516,413,371 160,073,045 186,367,578
-------------- ----------- ------------
End of period.......................................... $1,140,053,287 $234,726,214 $218,495,818
============== =========== ============
---------------
Accumulated undistributed net investment income........ $ 7,883,673 $ 333,117 $ 1,533,739
============== =========== ============
Shares issued and repurchased:
Sold................................................... 31,474,224 4,939,017 2,470,784
Issued in reinvestment of dividends and
distributions......................................... 755,319 357,190 1,337,900
Repurchased............................................ (9,684,502) (3,227,119) (2,775,949)
-------------- ----------- ------------
Net increase........................................... 22,545,041 2,069,088 1,032,735
============== =========== ============
</TABLE>
See Notes to Financial Statements
- ---------------------
116
<PAGE> 118
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (continued)
FOR THE YEAR ENDED NOVEMBER 30, 1997
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
ALLIANCE GLOBAL GROWTH AND DIVERSIFIED
GROWTH EQUITIES INCOME+ EQUITIES
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)............................ $ 1,960,357 $ 1,783,905 $ 76,139 $ 1,750,638
Net realized gain (loss) on investments................. 81,524,855 26,101,178 219,703 (6,297,980)
Net realized gain on futures contracts and options
contracts.............................................. 1,379,640.... -- -- --
Net realized foreign exchange gain (loss) on other
assets and liabilities................................. -- 69,950 111,488 6,707,753
Change in unrealized appreciation/depreciation on
investments............................................ 34,851,529 7,084,155 (263,491) 3,910,822
Change in unrealized foreign exchange gain/loss on other
assets and liabilities................................. -- 1,082,247 (124,407) 211,844
Change in unrealized appreciation/depreciation on
futures contracts, options contracts and currency swap
agreements............................................. (405,000) -- -- --
---------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations............................................. 119,311,381 36,121,435 19,432 6,283,077
---------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment income................... (1,200,000) (2,305,000) -- (5,175,000)
Distributions from net realized gain on investments.... (23,710,000) (12,550,000) -- (1,715,000)
---------------------------------------------------------
Total dividends and distributions to shareholders....... (24,910,000) (14,855,000) -- (6,890,000)
---------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold............................... 393,697,806 147,050,332 47,363,333 148,423,226
Proceeds from shares issued for reinvestment of
dividends and distributions............................ 24,910,000 14,855,000 -- 6,890,000
Cost of shares repurchased.............................. (189,842,593) (88,014,579) (4,538,803) (62,787,984)
---------------------------------------------------------
Net increase in net assets resulting from capital share
transactions........................................... 228,765,213 73,890,753 42,824,530 92,525,242
---------------------------------------------------------
TOTAL INCREASE IN NET ASSETS............................ 323,166,594 95,157,188 42,843,962 91,918,319
NET ASSETS:
Beginning of period..................................... 381,366,673 246,482,006 -- 157,008,393
---------------------------------------------------------
End of period........................................... $ 704,533,267 $341,639,194 $42,843,962 $248,926,712
=========================================================
---------------
Accumulated undistributed net investment income......... $ 1,954,191 $ 1,870,601 $ 188,142 $ 7,621,922
=========================================================
Shares issued and repurchased:
Sold.................................................... 18,866,011 9,425,673 4,546,734 12,963,775
Issued in reinvestment of dividends and distributions... 1,397,084 1,045,391 -- 646,315
Repurchased............................................. (9,403,821) (5,605,026) (431,073) (5,452,782)
---------------------------------------------------------
Net increase............................................ 10,859,274 4,866,038 4,115,661 8,157,308
=========================================================
---------------
+ Commenced operations June 2, 1997
<CAPTION>
REAL AGGRESSIVE EMERGING
ESTATE+ GROWTH MARKETS+
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss)............................ $ 239,201 $ (91,011) $ 105,714
Net realized gain (loss) on investments................. 22,378 (2,829,784) (913,203)
Net realized gain on futures contracts and options
contracts.............................................. -- -- --
Net realized foreign exchange gain (loss) on other
assets and liabilities................................. -- -- (33,595)
Change in unrealized appreciation/depreciation on
investments............................................ 1,322,345 11,818,657 (3,567,693)
Change in unrealized foreign exchange gain/loss on other
assets and liabilities................................. -- -- (30)
Change in unrealized appreciation/depreciation on
futures contracts, options contracts and currency swap
agreements............................................. -- -- --
----------- ------------ -----------
Net increase (decrease) in net assets resulting from
operations............................................. 1,583,924 8,897,862 (4,408,807)
----------- ------------ -----------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment income................... -- (43,000) --
Distributions from net realized gain on investments.... -- -- --
----------- ------------ -----------
Total dividends and distributions to shareholders....... -- (43,000) --
----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold............................... 32,073,915 93,642,244 26,523,263
Proceeds from shares issued for reinvestment of
dividends and distributions............................ -- 43,000 --
Cost of shares repurchased.............................. (4,092,981) (34,060,944) (2,135,363)
----------- ------------ -----------
Net increase in net assets resulting from capital share
transactions........................................... 27,980,934 59,624,300 24,387,900
----------- ------------ -----------
TOTAL INCREASE IN NET ASSETS............................ 29,564,858 68,479,162 19,979,093
NET ASSETS:
Beginning of period..................................... -- 35,124,302 --
----------- ------------ -----------
End of period........................................... $29,564,858 $103,603,464 $19,979,093
=========== ============ ===========
Accumulated undistributed net investment income......... $ 239,716 $ -- $ 170,105
=========== ============ ===========
Shares issued and repurchased:
Sold.................................................... 2,929,568 8,405,394 2,715,811
Issued in reinvestment of dividends and distributions... -- 4,470 --
Repurchased............................................. (364,503) (2,989,260) (227,806)
----------- ------------ -----------
Net increase............................................ 2,565,065 5,420,604 2,488,005
=========== ============ ===========
</TABLE>
---------------
+ Commenced operations June 2, 1997
See Notes to Financial Statements
---------------------
117
<PAGE> 119
- ---------------------
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.................................. $ 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)
Distributions from net realized gain on investments... (4,750) -- -- --
----------------------------------------------------------------
Total dividends and distributions to shareholders...... (4,244,750) (4,060,000) (1,225,000) (7,420,000)
----------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 615,571,205 26,461,284 20,121,281 89,355,894
Proceeds from shares issued for reinvestment of
dividends and distributions........................... 4,244,750 4,060,000 1,225,000 7,420,000
Cost of shares repurchased............................. (621,371,905) (24,740,221) (14,581,771) (71,988,357)
----------------------------------------------------------------
Net increase (decrease) in net assets resulting from
capital share transactions............................ (1,555,950) 5,781,063 6,764,510 24,787,537
----------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS........................... 515,603 8,462,373 7,732,887 31,055,426
NET ASSETS:
Beginning of period.................................... 90,731,193 59,759,044 29,474,520 82,173,667
----------------------------------------------------------------
End of period.......................................... $ 91,246,796 $ 68,221,417 $ 37,207,407 $113,229,093
================================================================
---------------
Accumulated undistributed net investment income........ $ 6,322,183 $ 4,377,089 $ 2,004,899 $ 8,882,962
================================================================
Shares issued and repurchased:
Sold................................................... 57,928,895 2,437,840 1,891,179 8,529,658
Issued in reinvestment of dividends and
distributions......................................... 408,149 391,137 118,015 744,233
Repurchased............................................ (58,340,347) (2,268,851) (1,379,014) (6,827,580)
----------------------------------------------------------------
Net increase (decrease)................................ (3,303) 560,126 630,180 2,446,311
================================================================
<CAPTION>
WORLDWIDE
HIGH SUNAMERICA
INCOME BALANCED#
----------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income.................................. $ 3,853,929 $ 56,068
Net realized gain (loss) on investments................ 2,824,669 28,763
Net realized gain (loss) on futures and options
contracts............................................. -- --
Net realized foreign exchange gain (loss) on other
assets and liabilities................................ (245,282) --
Change in unrealized appreciation/depreciation on
investments........................................... 2,512,138 822,808
Change in unrealized foreign exchange gain/loss on
other assets and liabilities.......................... (4,477) --
Change in unrealized appreciation/depreciation on
futures contracts..................................... -- --
------------ -----------
Net increase in net assets resulting from operations... 8,940,977 907,639
------------ -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.................. (1,700,000) --
Distributions from net realized gain on investments... (100,000) --
------------ -----------
Total dividends and distributions to shareholders...... (1,800,000) --
------------ -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 48,071,872 11,344,623
Proceeds from shares issued for reinvestment of
dividends and distributions........................... 1,800,000 --
Cost of shares repurchased............................. (29,323,432) (2,028,468)
------------ -----------
Net increase (decrease) in net assets resulting from
capital share transactions............................ 20,548,440 9,316,155
------------ -----------
TOTAL INCREASE IN NET ASSETS........................... 27,689,417 10,223,794
NET ASSETS:
Beginning of period.................................... 21,515,080 --
------------ -----------
End of period.......................................... $ 49,204,497 $10,223,794
============ ===========
---------------
Accumulated undistributed net investment income........ $ 3,097,896 $ 56,068
============ ===========
Shares issued and repurchased:
Sold................................................... 4,060,525 1,113,491
Issued in reinvestment of dividends and
distributions......................................... 166,821 --
Repurchased............................................ (2,425,678) (194,594)
------------ -----------
Net increase (decrease)................................ 1,801,668 918,897
============ ===========
</TABLE>
# Commenced operations June 3, 1996
See Notes to Financial Statements
- ---------------------
118
<PAGE> 120
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (continued)
FOR THE YEAR ENDED NOVEMBER 30, 1996
<TABLE>
<CAPTION>
BALANCED/
PHOENIX
INVESTMENT ASSET GROWTH-
COUNSEL ALLOCATION UTILITY# INCOME
-------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.................................. $ 1,397,620 $ 9,136,961 $ 81,705 $ 2,773,321
Net realized gain (loss) on investments................ 2,107,376 19,730,122 12,853 13,516,427
Net realized gain on futures and options contracts..... -- 391,668 -- 1,426,165
Net realized foreign exchange gain (loss) on other
assets and liabilities................................ -- 89 (230) 29
Change in unrealized appreciation/depreciation on
investments........................................... 3,902,857 18,681,439 287,691 42,693,932
Change in unrealized foreign exchange gain/loss on
other assets and liabilities.......................... -- -- 139 --
Change in unrealized appreciation/depreciation on
futures contracts..................................... -- 1,166,581 -- 962,381
-------------------------------------------------------------
Net increase in net assets resulting from operations... 7,407,853 49,106,860 382,158 61,372,255
-------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.................. (540,000) (5,505,000) -- (1,680,000)
Distributions from net realized gain on investments... (890,000) (6,805,000) -- (5,975,000)
-------------------------------------------------------------
Total dividends and distributions to shareholders...... (1,430,000) (12,310,000) -- (7,655,000)
-------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 44,916,086 108,836,939 6,090,461 145,602,473
Proceeds from shares issued for reinvestment of
dividends and distributions........................... 1,430,000 12,310,000 -- 7,655,000
Cost of shares repurchased............................. (14,731,916) (41,391,763) (173,972) (52,792,476)
-------------------------------------------------------------
Net increase in net assets resulting from capital share
transactions.......................................... 31,614,170 79,755,176 5,916,489 100,464,997
-------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS........................... 37,592,023 116,552,036 6,298,647 154,182,252
NET ASSETS:
Beginning of period.................................... 32,428,535 199,836,390 -- 171,281,073
-------------------------------------------------------------
End of period.......................................... $ 70,020,558 $316,388,426 $6,298,647 $325,463,325
=============================================================
---------------
Accumulated undistributed net investment income........ $ 1,258,279 $ 8,660,644 $ 81,475 $ 2,766,743
=============================================================
Shares issued and repurchased:
Sold................................................... 3,604,718 8,296,399 602,909 9,953,598
Issued in reinvestment of dividends and
distributions......................................... 117,502 970,055 -- 541,755
Repurchased............................................ (1,184,892) (3,164,619) (17,033) (3,630,349)
-------------------------------------------------------------
Net increase........................................... 2,537,328 6,101,835 585,876 6,865,004
=============================================================
<CAPTION>
FEDERATED VENTURE
VALUE# VALUE
--------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income.................................. $ 40,137 $ 3,640,938
Net realized gain (loss) on investments................ (22,475) 9,692,354
Net realized gain on futures and options contracts..... -- --
Net realized foreign exchange gain (loss) on other
assets and liabilities................................ -- 2,021
Change in unrealized appreciation/depreciation on
investments........................................... 1,196,109 75,918,377
Change in unrealized foreign exchange gain/loss on
other assets and liabilities.......................... -- 341
Change in unrealized appreciation/depreciation on
futures contracts..................................... -- --
----------- ------------
Net increase in net assets resulting from operations... 1,213,771 89,254,031
----------- ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.................. -- (1,150,000)
Distributions from net realized gain on investments... -- (1,631,000)
----------- ------------
Total dividends and distributions to shareholders...... -- (2,781,000)
----------- ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 11,583,467 358,199,882
Proceeds from shares issued for reinvestment of
dividends and distributions........................... -- 2,781,000
Cost of shares repurchased............................. (337,710) (85,948,539)
----------- ------------
Net increase in net assets resulting from capital share
transactions.......................................... 11,245,757 275,032,343
----------- ------------
TOTAL INCREASE IN NET ASSETS........................... 12,459,528 361,505,374
NET ASSETS:
Beginning of period.................................... -- 154,907,997
----------- ------------
End of period.......................................... $12,459,528 $516,413,371
=========== ============
Accumulated undistributed net investment income........ $ 40,137 $ 3,382,016
=========== ============
Shares issued and repurchased:
Sold................................................... 1,158,140 24,918,067
Issued in reinvestment of dividends and
distributions......................................... -- 208,003
Repurchased............................................ (33,890) (6,065,330)
----------- ------------
Net increase........................................... 1,124,250 19,060,740
=========== ============
</TABLE>
# Commenced operations June 3, 1996
See Notes to Financial Statements
---------------------
119
<PAGE> 121
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (continued)
FOR THE YEAR ENDED NOVEMBER 30, 1996
<TABLE>
<CAPTION>
GROWTH/
PHOENIX
PUTNAM INVESTMENT ALLIANCE GLOBAL
GROWTH COUNSEL GROWTH EQUITIES
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)........................... $ (23,455) $ 1,327,266 $ 1,199,438 $ 2,128,761
Net realized gain (loss) on investments................ 8,612,831 16,211,794 21,793,902 12,300,321
Net realized gain on futures and options contracts..... -- -- 433,180 --
Net realized foreign exchange gain (loss) on other
assets and liabilities................................ -- (510) -- 496,594
Change in unrealized appreciation/depreciation on
investments........................................... 17,288,052 10,855,474 46,485,737 19,341,166
Change in unrealized foreign exchange gain/loss on
other assets and liabilities.......................... -- 21 -- (27,011)
Change in unrealized appreciation/depreciation on
futures contracts..................................... -- -- 300,750 --
----------------------------------------------------------------
Net increase in net assets resulting from operations... 25,877,428 28,394,045 70,213,007 34,239,831
----------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.................. -- (1,265,000) (483,000) (1,885,000)
Distributions from net realized gain on investments... -- (10,645,000) (13,185,000) (4,480,000)
----------------------------------------------------------------
Total dividends and distributions to shareholders...... -- (11,910,000) (13,668,000) (6,365,000)
----------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 55,935,417 46,376,696 247,316,545 99,072,900
Proceeds from shares issued for reinvestment of
dividends and distributions........................... -- 11,910,000 13,668,000 6,365,000
Cost of shares repurchased............................. (37,015,839) (38,313,646) (104,032,606) (52,582,422)
----------------------------------------------------------------
Net increase in net assets resulting from capital share
transactions.......................................... 18,919,578 19,973,050 156,951,939 52,855,478
----------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS........................... 44,797,006 36,457,095 213,496,946 80,730,309
NET ASSETS:
Beginning of period.................................... 115,276,039 149,910,483 167,869,727 165,751,697
----------------------------------------------------------------
End of period.......................................... $160,073,045 $186,367,578 $ 381,366,673 $246,482,006
================================================================
---------------
Accumulated undistributed net investment income........ $ -- $ 1,322,795 $ 1,193,834 $ 2,209,001
================================================================
Shares issued and repurchased:
Sold................................................... 4,113,284 3,516,917 15,394,232 7,165,202
Issued in reinvestment of dividends and
distributions......................................... -- 949,004 893,333 472,181
Repurchased............................................ (2,724,390) (2,922,221) (6,661,296) (3,815,033)
----------------------------------------------------------------
Net increase........................................... 1,388,894 1,543,700 9,626,269 3,822,350
================================================================
<CAPTION>
INTERNATIONAL
DIVERSIFIED AGGRESSIVE
EQUITIES GROWTH#
------------------------------------------------------------------------------------------------------------------------
<S> <C><C> <C>
OPERATIONS:
Net investment income (loss)........................... $ 481,375 $ 39,730
Net realized gain (loss) on investments................ 1,688,079 (705,902)
Net realized gain on futures and options contracts..... -- --
Net realized foreign exchange gain (loss) on other
assets and liabilities................................ 5,292,994 --
Change in unrealized appreciation/depreciation on
investments........................................... 5,555,457 3,091,213
Change in unrealized foreign exchange gain/loss on
other assets and liabilities.......................... (813,250) --
Change in unrealized appreciation/depreciation on
futures contracts..................................... -- --
------------ -----------
Net increase in net assets resulting from operations... 12,204,655 2,425,041
------------ -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.................. (1,350,000) --
Distributions from net realized gain on investments... -- --
------------ -----------
Total dividends and distributions to shareholders...... (1,350,000) --
------------ -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.............................. 133,585,152 39,091,029
Proceeds from shares issued for reinvestment of
dividends and distributions........................... 1,350,000 --
Cost of shares repurchased............................. (37,742,073) (6,391,768)
------------ -----------
Net increase in net assets resulting from capital share
transactions.......................................... 97,193,079 32,699,261
------------ -----------
TOTAL INCREASE IN NET ASSETS........................... 108,047,734 35,124,302
NET ASSETS:
Beginning of period.................................... 48,960,659 --
------------ -----------
End of period.......................................... $157,008,393 $35,124,302
============ ===========
Accumulated undistributed net investment income........ $ 4,077,453 $ 39,730
============ ===========
Shares issued and repurchased:
Sold................................................... 12,354,619 4,051,127
Issued in reinvestment of dividends and
distributions......................................... 130,941 --
Repurchased............................................ (3,499,995) (661,704)
------------ -----------
Net increase........................................... 8,985,565 3,389,423
============ ===========
</TABLE>
# Commenced operations June 3, 1996
See Notes to Financial Statements
- ---------------------
120
<PAGE> 122
- ---------------------
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; and by FS Variable Separate Account (the "FS Account"), a separate
account of First SunAmerica Life Insurance Company ("FS Life Company"),
organized under the laws of the state of New York.
The Trust issues 21 separate series of shares (the "Portfolios"), each of
which represents a separate managed portfolio of securities with its own
investment objectives. The Trustees may establish additional series in the
future. All shares may be purchased or redeemed by the Account at net asset
value without any sales or redemption charge.
The investment objectives for each portfolio are as follows:
The Cash Management Portfolio seeks high current yield while preserving capital
by investing in a diversified selection of money market instruments.
The Global Bond Portfolio seeks a high total return, emphasizing current income
and, to a lesser extent, providing opportunities for capital appreciation,
through investment in high quality fixed-income securities of U.S. and foreign
issuers and through transactions in foreign currencies.
The Corporate Bond Portfolio seeks a high total return with only moderate price
risk by investing primarily in investment grade fixed-income securities.
The High-Yield Bond Portfolio seeks a high level of current income and
secondarily seeks capital appreciation by investing primarily in intermediate
and long-term corporate obligations, with emphasis on higher-yielding,
higher-risk, lower-rated or unrated securities.
The Worldwide High Income Portfolio seeks high current income and, secondarily,
capital appreciation, by investing primarily in a portfolio of high-yielding
fixed-income securities of issuers located throughout the world.
The SunAmerica Balanced Portfolio seeks to conserve principal by maintaining at
all times a balanced portfolio of stocks and bonds.
The Balanced/Phoenix Investment Counsel Portfolio seeks reasonable income,
long-term capital growth and conservation of capital by investing primarily in
common stocks and fixed-income securities, with an emphasis on income-producing
securities which appear to have some potential for capital enhancement.
The Asset Allocation Portfolio seeks high total return (including income and
capital gains) consistent with preservation of capital over the long-term
through a diversified portfolio that can include common stocks and other
securities having common stock characteristics, bonds and other intermediate and
long-term fixed-income securities and money market instruments (debt securities
maturing in one year or less) in any combination.
The Utility Portfolio seeks high current income and moderate capital
appreciation by investing primarily in the equity and debt securities of utility
companies.
The Growth-Income Portfolio seeks growth of capital and income by investing
primarily in common stocks or securities which demonstrate the potential for
appreciation and/or dividends.
The Federated Value Portfolio seeks growth of capital and income by investing
primarily in the securities of high quality companies.
The Venture Value Portfolio seeks to achieve growth of capital by investing
primarily in common stocks.
The Putnam Growth (formerly, the Provident Growth Portfolio), Growth/Phoenix
Investment Counsel and Alliance Growth Portfolios each seeks long-term growth of
capital by investing primarily in common stocks or securities with common stock
characteristics which demonstrate the potential for appreciation.
The Global Equities Portfolio seeks long-term growth of capital through
investment primarily in common stocks or securities of U.S. and foreign issuers
with common stock characteristics which demonstrate the potential for
appreciation and through transactions in foreign currencies.
---------------------
121
<PAGE> 123
The International Growth and Income Portfolio seeks growth of capital and
current income through investment primarily in common stocks and securities
principally traded on markets outside the United States that offer potential for
capital growth and current income.
The International Diversified Equities Portfolio seeks long-term capital
appreciation by investing in accordance with country weightings determined by
the Subadviser in common stocks of foreign issuers which, in the aggregate,
replicate broad country indices.
The Real Estate Portfolio seeks total return through a combination of growth and
income by investment primarily in securities of companies principally engaged in
or related to the real estate industry or which own significant real estate
assets or which primarily invest in real estate instruments.
The Aggressive Growth Portfolio seeks long-term growth of capital through
investment primarily in equity securities of small capitalization growth
companies.
The Emerging Markets Portfolio seeks long-term capital appreciation by investing
in common stocks that have above-average growth prospects primarily in emerging
markets outside the United States.
2. SIGNIFICANT ACCOUNTING POLICIES: The preparation of financial statements in
accordance with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from these estimates.
In the opinion of management of the Trust, the accompanying financial statements
contain all normal and recurring adjustments necessary for the fair presentation
of the financial position of the Trust at November 30, 1997, and the results of
its operations, the changes in its net assets and its financial highlights for
the periods then ended. The following is a summary of significant accounting
policies consistently followed by the Trust in the preparation of its financial
statements.
SECURITY VALUATIONS: Stocks are stated at value based upon closing sales
prices reported on recognized securities exchanges or, for listed securities
having no sales reported and for unlisted securities, upon last-reported bid
prices. Nonconvertible bonds, debentures, other long-term debt securities, and
short-term securities with original or remaining maturities in excess of 60 days
are valued at prices obtained for the day of valuation from a bond pricing
service of a major dealer in bonds when such prices are available; however, in
circumstances where the investment adviser deems it appropriate to do so, an
over-the-counter or exchange quotation at the mean of representative bid or
asked prices may be used. Securities traded primarily on securities exchanges
outside the United States are valued at the last sale price on such exchanges on
the day of valuation, or if there is no sale on the day of valuation, at the
last reported bid price. If a security's price is available from more than one
foreign exchange, a portfolio uses the exchange that is the primary market for
the security. Developing markets securities involve risks not typically
associated with investing in securities of issuers in more developed markets.
These investments are subject to various risk factors including market, credit
and sovereign risk. The markets in which these securities trade can be volatile
and at times illiquid. Futures contracts are valued at the last sale price
established each day by the board of trade or exchange on which they are traded.
Short-term securities with 60 days or less to maturity are amortized to maturity
based on their cost to the Trust if acquired within 60 days of maturity or, if
already held by the Trust on the 60th day, are amortized to maturity based on
the value determined on the 61st day. Securities for which quotations are not
readily available are valued at fair value as determined in good faith under the
direction of the Trust's Trustees.
REPURCHASE AGREEMENTS: The Trust's custodian takes possession of the
collateral pledged for investments in repurchase agreements. The underlying
collateral is valued daily on a mark-to-market basis to assure that the value,
including accrued interest, is at least equal to the repurchase price. In the
event of default of the obligation to repurchase, the Trust has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. If the seller defaults and the value of the collateral declines or
if bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by the Trust may be delayed or limited.
FOREIGN CURRENCY TRANSLATION: The books and records of the Trust are
maintained in U.S. dollars. Assets and liabilities denominated in foreign
currencies and commitments under forward foreign currency contracts are
translated into U.S. dollars at the mean of the quoted bid and asked prices of
such currencies against the U.S. dollar.
The Trust does not isolate that portion of the results of operations arising
as a result of changes in the foreign exchange rates from the changes in the
market prices of securities held at fiscal year-end. Similarly, the Trust does
not isolate the effect of changes in foreign exchange rates from the changes in
the market prices of portfolio securities sold during the year.
Realized foreign exchange gain and losses on other assets and liabilities and
change in unrealized foreign exchange gain and losses on other assets and
liabilities include realized foreign exchange gains and losses from currency
gains or losses between the trade and settlement dates of securities
transactions, the difference between the amounts of interest, dividends and
foreign withholding taxes recorded on the Trust's books and the U.S. dollar
equivalent amounts actually received or paid and changes in the unrealized
foreign exchange gains and losses relating to the other assets and liabilities
arising as a result of changes in the exchange rate.
FORWARD FOREIGN CURRENCY CONTRACTS: Certain portfolios may enter into forward
foreign currency contracts ("forward contracts") to attempt to protect
securities and related receivables and payables against changes in future
foreign exchange
- ---------------------
122
<PAGE> 124
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. On the
settlement date, the Portfolio records either realized gains or losses when the
contract is closed equal to the difference between the value of the contract at
the time it was opened and the value at the time it was closed. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of their contracts and from unanticipated
movements in the value of a foreign currency relative to the U.S. dollar.
Forward contracts involve elements of risk in excess of the amount reflected in
the Statement of Assets and Liabilities. The Trust bears the risk of an
unfavorable change in the foreign exchange rate underlying the forward contract.
FUTURES CONTRACTS: A futures contract is an agreement between two parties to
buy and sell a financial instrument at a set price on a future date. Upon
entering into such a contract the Trust is required to pledge to the broker an
amount of cash or U.S. government securities equal to the minimum "initial
margin" requirements of the exchange on which the futures contract is traded.
The contract amount reflects the extent of a Portfolio's exposure in these
financial instruments. A Portfolio's participation in the futures markets
involves certain risks, including imperfect correlation between movements in the
price of futures contracts and movements in the price of the securities hedged
or used for cover. The Trust's activities in the futures contracts are conducted
through regulated exchanges which do not result in counterparty credit risks.
Pursuant to a contract, the Portfolios agree to receive from or pay to the
broker an amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as "variation margin" and are
recorded by the Portfolios as unrealized appreciation or depreciation. When a
contract is closed, the Portfolios record a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and the
value at the time it was closed.
OPTIONS: An option is a contract conveying a right to buy or sell a financial
instrument at a specified price during a stipulated period. The premium paid by
a Portfolio for the purchase of a call or a put option is included in the
Portfolio's Statement of Assets and Liabilities as an investment and
subsequently marked to market to reflect the current market value of the option.
When a Portfolio writes a call or a put option, an amount equal to the premium
received by the Portfolio is included in the Portfolio's Statement of Assets and
Liabilities as a liability and is subsequently marked to market to reflect the
current market value of the option written. If an option which the Portfolio has
written either expires on its stipulated expiration date, or if the Portfolio
enters into a closing purchase transaction, the Portfolio realizes a gain (or
loss if the cost of a closing purchase transaction exceeds the premium received
when the option was written) without regard to any unrealized gain or loss on
the underlying security, and the liability related to such options is
extinguished. If a call option which the Portfolio has written is exercised, the
Portfolio realizes a capital gain or loss from the sale of the underlying
security and the proceeds from such sale are increased by the premium originally
received. If a put option which the Portfolio has written is exercised, the
amount of the premium originally received reduces the cost of the security which
the Portfolio purchased upon exercise of the option.
CURRENCY SWAPS: Currency swaps involve the exchange by a Portfolio with
another party of its respective rights to make or receive payments in specified
currencies. Currency swaps usually involve the delivery of the principal value
of one designated currency in exchange for the other designated currency.
Therefore, the entire principal value of a currency swap is subject to the risk
that the other party will default on its contractual delivery obligations.
Currency swaps involve elements of risk in excess of the amount reflected in the
Statement of Assets and Liabilities. Changes in the value of the swap are
reported as unrealized appreciation or depreciation in the Statement of Assets
and Liabilities. A realized gain or loss is recorded upon early termination of
such agreement.
SECURITIES TRANSACTIONS, INVESTMENT INCOME, EXPENSES, DIVIDENDS AND
DISTRIBUTIONS: As is customary in the mutual fund industry, securities
transactions are recorded on a trade date basis. Interest income is accrued
daily except when collection is not expected. Dividend income and distributions
to shareholders are recorded on the ex-dividend date except for certain
dividends from foreign securities, which are recorded as soon as the Trust is
informed after the ex-dividend date. The Trust amortizes premiums and accretes
discounts on fixed income securities, as well as those original issue discounts
for which amortization is required for federal income tax purposes; gains and
losses realized upon the sale of such securities are based on their identified
cost. Portfolios which earn foreign income and capital gains may be subject to
foreign withholding taxes at various rates.
Common expenses incurred by the Trust are allocated among the Portfolios based
upon relative net assets or other appropriate allocation methods. In all other
respects, expenses are charged to each Portfolio as incurred on a specific
identification basis.
The Portfolios record dividends and distributions to their 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 are not affected.
---------------------
123
<PAGE> 125
For the year ended November 30, 1997, the reclassification arising from
book/tax differences resulted in increases (decreases) to the components of net
assets as follows:
<TABLE>
<CAPTION>
ACCUMULATED ACCUMULATED
UNDISTRIBUTED NET UNDISTRIBUTED NET PAID-IN
INVESTMENT INCOME/(LOSS) REALIZED GAIN/(LOSS) CAPITAL
----------------------------------------------------
<S> <C> <C> <C>
Global Bond*............................................ $1,729,850 $ (1,729,850) $ --
Worldwide High Income*.................................. (120,494) 120,494 --
Utility*................................................ (3,129) 3,129 --
Growth-Income*.......................................... 65 (65) --
Venture Value........................................... 1,065 (1,065) --
Growth/Phoenix Investment Counsel*...................... 22 (22) --
Global Equities......................................... 182,695 (182,696) 1
International Growth and Income*........................ 112,003 (111,488) (515)
International Diversified Equities*..................... 6,968,831 (6,964,267) (4,564)
Real Estate............................................. 515 -- (515)
Aggressive Growth....................................... 94,281 -- (94,281)
Emerging Markets........................................ 64,391 (63,876) (515)
</TABLE>
* Reclassification is primarily due to differing book/tax treatments for
foreign currency transactions.
3. JOINT REPURCHASE AGREEMENT ACCOUNT: The Cash Management, High-Yield Bond,
SunAmerica Balanced and Aggressive Growth Portfolios, along with other
affiliated registered investment companies, transfer uninvested cash balances
into a single joint account, the daily aggregate balance of which is invested in
one or more repurchase agreements collateralized by U.S. Treasury or federal
agency obligations. As of November 30, 1997, the Cash Management, High-Yield
Bond, SunAmerica Balanced, and Aggressive Growth Portfolios had a 9.1%, 8.0%,
1.6% and 4.1%, undivided interest, respectively, which represented $13,341,000,
$11,659,000, $2,364,000 and $5,956,000, respectively, in principal amount in a
repurchase agreement in the joint account. As of such date, the repurchase
agreement in the joint account and the collateral therefore was as follows:
Paine Webber Securities, Inc. Repurchase Agreement, 5.625% dated 11/28/97, in
the principal amount of $146,239,000 repurchase price $146,307,550 due 12/1/97
collateralized by $50,000,000 U.S. Treasury Note 4.75% due 10/31/98, $1,230,000
U.S. Treasury Note 6.00% due 5/01/98, $45,440,000 U.S. Treasury Note 6.125% due
3/31/98, and $50,000,000 U.S. Treasury Note 7.125% due 2/29/00; approximate
aggregate value $149,265,739.
4. FEDERAL INCOME TAXES: The Trust intends to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and
distribute all of its taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal tax provision is
required.
The amounts of aggregate unrealized gain (loss) and the cost of investment
securities for tax purposes, including short-term securities and repurchase
agreements at November 30, 1997, were as follows:
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE 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....................... $ 7,172 $ 10,928 $ (3,756) $155,310,944 $ 684 $ --
Global Bond........................... 1,338,086 967,034 371,052 82,807,511 -- --
Corporate Bond**...................... 2,067,215 189,531 1,877,684 59,778,545 273,407 496,303
High-Yield Bond....................... 4,764,218 3,212,750 1,551,468 196,334,578 -- 8,449,586
Worldwide High Income................. 2,518,941 4,641,796 (2,122,855) 129,977,576 -- --
SunAmerica Balanced................... 4,149,254 590,567 3,558,687 40,974,768 -- --
Balanced/Phoenix Investment Counsel... 5,661,780 1,178,789 4,482,991 95,947,926 -- --
Asset Allocation...................... 59,367,949 8,856,636 50,511,313 509,455,409 -- --
Utility***............................ 2,176,864 131,767 2,045,097 22,401,726 -- --
Growth-Income**....................... 154,097,849 6,071,412 148,026,437 478,491,719 -- --
Federated Value....................... 7,547,700 1,210,799 6,336,901 52,959,471 -- 16,874
Venture Value......................... 253,113,615 11,549,359 241,564,256 896,593,662 -- --
Putnam Growth......................... 46,989,293 1,414,609 45,574,684 189,194,894 -- --
Growth/Phoenix Investment Counsel..... 28,315,376 3,626,289 24,689,087 192,931,646 -- --
Alliance Growth....................... 114,823,260 13,918,508 100,904,752 606,363,996 -- --
Global Equities**..................... 53,292,719 15,961,693 37,331,026 301,929,742 -- --
International Growth and Income....... 1,333,688 1,700,124 (366,436) 43,544,375 -- --
International Diversified
Equities**.......................... 21,025,270 13,968,835 7,056,435 242,741,427 -- --
Real Estate........................... 1,567,814 245,597 1,322,217 28,339,353 -- --
Aggressive Growth**................... 17,160,892 2,375,151 14,785,741 91,789,119 2,868,661 --
Emerging Markets...................... 519,396 4,170,438 (3,651,042) 23,720,877 927,325 --
</TABLE>
* Expire 2004-2005
** Post 10/31/97 Capital Loss Deferrals: Corporate Bond $735; Growth-Income
$159,504; Global Equities $4,392,999; International Diversified Equities
$7,883,251 and Aggressive Growth $542,896.
*** Post 10/31/97 Currency Loss Deferrals: Utility $379.
+ Net capital loss carryovers reported as of November 30, 1997, which are
available to the extent provided in regulations to offset future capital
gains. To the extent that these carryovers are used to offset future capital
gains, it is probable that these gains so offset will not be distributed.
- ---------------------
124
<PAGE> 126
5. MANAGEMENT OF THE TRUST: SunAmerica Asset Management Corp. ("SAAMCo" or the
"Adviser"), an indirect wholly owned subsidiary of the Life Company, serves as
investment adviser for all the portfolios of the Trust. The Trust, on behalf of
each Portfolio, entered into an Investment Advisory and Management Agreement
(the "Agreement") with SAAMCo to handle the Trust's day-to-day affairs. It is
the responsibility of the Adviser and, for certain Portfolios pursuant to
Subadvisory Agreements described below, the subadvisers, to make investment
decisions for the Portfolios and to place the purchase and sale orders for the
Portfolio transactions. Such orders may be directed to any broker including, in
the manner and to the extent permitted by applicable law, affiliates of the
Adviser or a subadviser. The Agreement provides that SAAMCo shall administer the
Trust's business affairs; furnish offices, necessary facilities and equipment;
provide clerical, bookkeeping and administrative services; and permit any of its
officers or employees to serve, without compensation, as trustees or officers of
the Trust, if duly elected to such positions. There is no subadviser for the
Cash Management, High-Yield Bond, SunAmerica Balanced and Aggressive Growth
Portfolios, and SAAMCo, therefore, performs all investment advisory services for
these Portfolios. The term "Assets", as used in the following table, means the
average daily net assets of the Portfolios.
The Trust pays SAAMCo a monthly fee calculated at the following annual
percentages of each Portfolio's assets:
<TABLE>
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ---------------------------------------------------------
<S> <C> <C>
Cash Management $0--$100 million 0.55%
> $100 million 0.50%
> $300 million 0.45%
Corporate Bond $0--$ 50 million 0.70%
> $ 50 million 0.60%
> $150 million 0.55%
> $250 million 0.50%
Global Bond- $0--$ 50 million 0.75%
Asset Allocation > $ 50 million 0.65%
> $150 million 0.60%
> $250 million 0.55%
High-Yield Bond $0--$ 50 million 0.70%
> $ 50 million 0.65%
> $150 million 0.60%
> $250 million 0.55%
Worldwide High > $ 0 1.00%
Income-International
Diversified Equities
SunAmerica Balanced- $0--$ 50 million 0.70%
Balanced/Phoenix > $ 50 million 0.65%
Investment Counsel- > $150 million 0.60%
Growth-Income- > $300 million 0.55%
Alliance Growth- > $500 million 0.50%
Growth/Phoenix
Investment Counsel
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ---------------------------------------------------------
<S> <C> <C>
Utility-Federated Value $0--$150 million 0.75%
> $150 million 0.60%
> $500 million 0.50%
Venture Value-Real Estate $0--$100 million 0.80%
> $100 million 0.75%
> $500 million 0.70%
Putnam Growth $0--$150 million 0.85%
> $150 million 0.80%
> $300 million 0.70%
International Growth and $0--$150 million 1.00%
Income > $150 million 0.90%
> $300 million 0.80%
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%
Emerging Markets > $ 0 1.25%
</TABLE>
The organizations described below act as subadvisers to the Trust and certain
of its Portfolios pursuant to Subadvisory Agreements with SAAMCo. Under the
Subadvisory Agreements, the subadvisers manage the investment and reinvestment
of the assets of the respective Portfolios for which they are responsible. Each
of the subadvisers is independent of SAAMCo and discharges its responsibilities
subject to the policies of the Trust's Trustees and the oversight and
supervision of SAAMCo, which pays the subadvisers' fees.
Goldman Sachs Asset Management International, an affiliate of Goldman Sachs &
Co., serves as subadviser for the Global Bond Portfolio; Goldman Sachs Asset
Management, a separate operating division of Goldman Sachs & Co., serves as
subadviser for the Asset Allocation Portfolio; Federated Investment Counseling
serves as a subadviser for the Corporate Bond, Utility and Federated Value
Portfolios; Morgan Stanley Asset Management Inc., a wholly owned subsidiary of
Morgan Stanley Dean Witter Discover & Co., serves as subadviser for the
Worldwide High Income and International Diversified Equities Portfolios; Phoenix
Investment Counsel, Inc. serves as subadviser for the Balanced/Phoenix
Investment Counsel and Growth/Phoenix Investment Counsel Portfolios; Alliance
Capital Management L.P. serves as a subadviser for the Growth-Income, Alliance
Growth and Global Equities Portfolios; Davis Selected Advisers, L.P. serves as
subadviser for the Venture Value and Real Estate Portfolios; and Putnam
Investment Management, Inc. serves as subadviser for the Putnam Growth,
International Growth and Income and Emerging Markets Portfolios. Effective April
16, 1997 Putnam Investment Management, Inc. assumed the role as subadviser from
Provident Investment Counsel, Inc. for the Putnam Growth Portfolio (formerly the
Provident Growth Portfolio).
---------------------
125
<PAGE> 127
The portion of the investment advisory fees received by SAAMCo which are paid
to subadvisers are as follows:
<TABLE>
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ---------------------------------------------------------
<S> <C> <C>
Corporate Bond $0--$ 25 million 0.30%
> $ 25 million 0.25%
> $ 50 million 0.20%
> $150 million 0.15%
Global Bond- $0--$ 50 million 0.40%
Asset Allocation > $ 50 million 0.30%
> $150 million 0.25%
> $250 million 0.20%
Worldwide High Income- $0--$350 million 0.65%
International Diversified > $350 million 0.60%
Equities
Balanced/Phoenix $0--$ 50 million 0.35%
Investment Counsel- > $ 50 million 0.30%
Growth-Income- > $150 million 0.25%
Alliance Growth- > $300 million 0.20%
Growth/Phoenix > $500 million 0.15%
Investment Counsel
Utility-Federated Value $0--$ 20 million 0.55%
> $ 20 million 0.35%
> $ 50 million 0.25%
> $150 million 0.20%
> $500 million 0.15%
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
- ---------------------------------------------------------
<S> <C> <C>
Venture Value-Real Estate $0--$100 million 0.45%
> $100 million 0.40%
> $500 million 0.35%
Putnam Growth $0--$150 million 0.50%
> $150 million 0.45%
> $300 million 0.35%
Global Equities $0--$ 50 million 0.50%
> $ 50 million 0.40%
> $150 million 0.30%
> $300 million 0.25%
International Growth $0--$150 million 0.65%
and Income > $150 million 0.55%
> $300 million 0.45%
Emerging Markets $0--$150 million 1.00%
> $150 million 0.95%
> $300 million 0.85%
</TABLE>
For certain Portfolios, the Adviser has voluntarily agreed to reimburse
expenses, if necessary, to keep annual operating expenses at or below the
following percentages of each of the following Portfolio's average net assets:
SunAmerica Balanced Portfolio -- 1.00%, Utility Portfolio -- 1.05%, Federated
Value Portfolio -- 1.05%, International Growth and Income Portfolio -- 1.60%,
Real Estate Portfolio -- 1.25%, Aggressive Growth Portfolio -- 1.05% and
Emerging Markets Portfolio -- 1.90%. The Adviser also may voluntarily reimburse
additional amounts to increase the investment return to a Portfolio's investors.
The Adviser may terminate all such waivers and/or reimbursements at any time.
Further, effective June 3, 1996, any waivers or reimbursements made by the
Adviser with respect to a Portfolio are subject to recoupment from that
Portfolio within the following two years, provided that the Portfolio is able to
effect such payment to the Adviser and remain in compliance with the foregoing
expense limitations.
At November 30, 1997, the amounts repaid to the Adviser which are included in
the management fee along with the remaining balance subject to recoupment are as
follows:
<TABLE>
<CAPTION>
BALANCE
AMOUNT SUBJECT TO
RECOUPED RECOUPMENT
-------- ----------
<S> <C> <C>
SunAmerica Balanced Portfolio.................................... $ 9,879 $ 2,613
Utility Portfolio................................................ -- 41,753
Federated Value Portfolio........................................ 16,677 --
International Growth and Income Portfolio........................ -- 52,507
Real Estate Portfolio............................................ -- 7,874
Aggressive Growth Portfolio...................................... 3,185 --
Emerging Markets Portfolio....................................... -- 55,614
</TABLE>
6. ORGANIZATIONAL EXPENSES: Costs incurred by the Adviser in connection with
the organization and registration of the Trust amounted to $223,826. During the
year ended November 30, 1997, an additional $19,122 was incurred as part of the
organization and registration of International Growth and Income Portfolio, Real
Estate Portfolio and Emerging Markets Portfolio. 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.
- ---------------------
126
<PAGE> 128
7. PURCHASES AND SALES OF SECURITIES: Information with respect to purchases and
sales of long-term securities for the year ended November 30, 1997, was as
follows:
<TABLE>
<CAPTION>
CASH GLOBAL CORPORATE HIGH-YIELD WORLDWIDE SUNAMERICA
MANAGEMENT BOND BOND BOND HIGH INCOME BALANCED
<S> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------
Purchases of portfolio
securities (excluding
U.S. government
securities).............. $ -- $226,029,858 $40,815,699 $408,262,796 $194,084,987 $48,399,099
Sales of portfolio
securities (excluding
U.S. government
securities).............. -- 192,808,617 19,086,248 344,823,245 120,395,277 26,738,310
Purchases of U.S.
government securities.... -- 41,002,858 5,180,703 2,907,188 -- 14,242,858
Sales of U.S. government
securities............... -- 46,845,461 3,319,617 2,898,750 -- 6,484,046
</TABLE>
<TABLE>
<CAPTION>
BALANCED/PHOENIX
INVESTMENT ASSET FEDERATED
COUNSEL ALLOCATION UTILITY GROWTH-INCOME VALUE
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------
Purchases of portfolio securities
(excluding U.S. government
securities)....................... $110,377,548 $ 365,429,006 $ 22,656,282 $ 330,671,857 $ 51,917,160
Sales of portfolio securities
(excluding U.S. government
securities)....................... 100,829,574 243,861,209 9,881,504 182,382,955 13,400,918
Purchases of U.S. government
securities........................ 100,506,017 497,120,181 -- 9,846,665 218,901
Sales of U.S. government
securities........................ 97,873,551 472,455,217 -- 5,699,550 580,945
</TABLE>
<TABLE>
<CAPTION>
GROWTH/PHOENIX
VENTURE PUTNAM INVESTMENT ALLIANCE GLOBAL
VALUE GROWTH COUNSEL GROWTH EQUITIES
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------
Purchases of portfolio securities
(excluding U.S. government
securities)....................... $507,736,131 $ 250,004,586 $408,396,428 $ 775,660,350 $ 389,226,183
Sales of portfolio securities
(excluding U.S. government
securities)....................... 158,915,378 217,634,080 389,098,707 565,919,094 334,058,797
Purchases of U.S. government
securities........................ 667,651 868,261 6,089,651 8,594,670 --
Sales of U.S. government
securities........................ 376,658 9,311,633 8,038,393 15,660,791 --
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
GROWTH AND DIVERSIFIED AGGRESSIVE EMERGING
INCOME EQUITIES REAL ESTATE GROWTH MARKETS
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------
Purchases of portfolio securities
(excluding U.S. government
securities)....................... $ 45,154,469 $ 166,708,332 $ 25,575,741 $ 198,662,040 $ 28,502,038
Sales of portfolio securities
(excluding U.S. government
securities)....................... 4,855,692 107,056,502 1,008,403 141,546,246 6,848,213
Purchases of U.S. government
securities........................ -- -- -- 2,424,188 --
Sales of U.S. government
securities........................ -- -- -- -- --
</TABLE>
8. TRANSACTIONS WITH AFFILIATES: The following Portfolios incurred brokerage
commissions with an affiliated broker:
<TABLE>
<CAPTION>
GOLDMAN SHELBY SUNAMERICA ROYAL ALLIANCE
SACHS & CO. CULLOM DAVIS SECURITIES, INC. ASSOCIATES, INC.
----------- ------------ ---------------- ----------------
<S> <C> <C> <C> <C>
Asset Allocation Portfolio........................... $77,151 $ -- $ -- $ --
Venture Value Portfolio.............................. -- 43,704 43,992 --
Putnam Growth Portfolio.............................. -- -- 400 520
Growth/Phoenix Investment Counsel Portfolio.......... -- -- -- 1,220
</TABLE>
9. COMMITMENTS AND CONTINGENCIES: The High-Yield Bond Portfolio has established
an uncommitted line of credit with State Street Bank and Trust Company with
interest payable at the Federal Funds rate plus 125 basis points. Borrowings
under the line of credit will commence when the Fund's cash shortfall exceeds
$100,000. During the year ended November 30, 1997, the High-Yield Bond Portfolio
had borrowings outstanding for 5 days under the line of credit and incurred $963
in interest charges related to these borrowings. The High-Yield Bond Portfolio
did not have any outstanding borrowing at November 30, 1997.
---------------------
127
<PAGE> 129
- ---------------------
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS*
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET DIVIDENDS DIVIDENDS NET
ASSET NET REALIZED & TOTAL DECLARED FROM FROM NET ASSET
VALUE NET UNREALIZED FROM NET REALIZED VALUE
PERIOD BEGINNING INVESTMENT GAIN (LOSS) ON INVESTMENT INVESTMENT GAIN ON END OF TOTAL
ENDED OF PERIOD INCOME** INVESTMENTS OPERATIONS INCOME INVESTMENTS PERIOD RETURN***
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Cash Management Portfolio
2/9/93-
11/30/93 $ 10.00 $ 0.19 $ 0.01 $ 0.20 $ -- $ -- $10.20 2.00%
11/30/94 10.20 0.38 (0.02) 0.36 (0.09) -- 10.47 3.51
11/30/95 10.47 0.56 0.01 0.57 (0.34) -- 10.70 5.59
11/30/96 10.70 0.53 (0.02) 0.51 (0.45) -- 10.76 4.92
11/30/97 10.76 0.53 0.01 0.54 (0.56) -- 10.74 5.22
Global Bond Portfolio
7/1/93-
11/30/93 10.00 0.13 0.17 0.30 -- -- 10.30 3.00
11/30/94 10.30 0.53 (0.86) (0.33) (0.09) (0.05) 9.83 (3.18)
11/30/95 9.83 0.60 0.97 1.57 (0.38) -- 11.02 16.40
11/30/96 11.02 0.59 0.54 1.13 (0.75) -- 11.40 10.94
11/30/97 11.40 0.52 0.38 0.90 (0.75) (0.04) 11.51 8.43
Corporate Bond Portfolio
7/1/93-
11/30/93 10.00 0.14 0.05 0.19 -- -- 10.19 1.90
11/30/94 10.19 0.52 (0.87) (0.35) (0.05) (0.04) 9.75 (3.41)
11/30/95 9.75 0.60 1.00 1.60 (0.53) -- 10.82 17.01
11/30/96 10.82 0.65 0.03 0.68 (0.41) -- 11.09 6.51
11/30/97 11.09 0.77 0.21 0.98 (0.53) -- 11.54 9.26
High-Yield Bond Portfolio
2/9/93-
11/30/93 10.00 0.76 0.36 1.12 -- -- 11.12 11.20
11/30/94 11.12 1.20 (1.65) (0.45) (0.29) (0.06) 10.32 (4.26)
11/30/95 10.32 1.11 0.12 1.23 (1.02) -- 10.53 12.64
11/30/96 10.53 0.98 0.48 1.46 (0.95) -- 11.04 14.86
11/30/97 11.04 1.04 0.48 1.52 (0.74) -- 11.82 14.53
Worldwide High Income Portfolio
10/28/94-
11/30/94 10.00 0.04 (0.09) (0.05) -- -- 9.95 (0.50)
11/30/95 9.95 1.10 0.47 1.57 (0.10) -- 11.42 16.02
11/30/96 11.42 1.25 1.60 2.85 (0.87) (0.05) 13.35 26.87
11/30/97 13.35 0.98 0.68 1.66 (0.90) (0.91) 13.20 14.17
SunAmerica Balanced Portfolio
6/3/96-
11/30/96 10.00 0.10 1.03 1.13 -- -- 11.13 11.30
11/30/97 11.13 0.23 2.15 2.38 (0.04) (0.02) 13.45 21.48
Balanced/Phoenix Investment Counsel Portfolio
10/28/94-
11/30/94 10.00 0.04 (0.08) (0.04) -- -- 9.96 (0.40)
11/30/95 9.96 0.34 2.23 2.57 (0.05) -- 12.48 25.89
11/30/96 12.48 0.34 1.31 1.65 (0.19) (0.31) 13.63 13.75
11/30/97 13.63 0.37 1.39 1.76 (0.23) (0.41) 14.75 13.52
<CAPTION>
NET RATIO OF NET
ASSETS RATIO OF INVESTMENT
END OF EXPENSES TO INCOME TO AVERAGE
PERIOD PERIOD AVERAGE NET AVERAGE NET PORTFOLIO COMMISSION
ENDED (000'S) ASSETS ASSETS TURNOVER PER SHARE
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Cash Management Portfolio
2/9/93-
11/30/93 $ 24,603 0.71%+++ 2.53%+++ --% $ NA
11/30/94 89,098 0.70++ 3.73++ -- NA
11/30/95 90,731 0.67 5.32 -- NA
11/30/96 91,247 0.62 4.90 -- NA
11/30/97 156,119 0.63 5.06 -- NA
Global Bond Portfolio
7/1/93-
11/30/93 25,010 1.35+++ 3.56+++ 84 NA
11/30/94 44,543 1.06 5.29 347 NA
11/30/95 59,759 0.95 5.89 339 NA
11/30/96 68,221 0.89 5.44 223 NA
11/30/97 89,043 0.90 4.70 360 NA
Corporate Bond Portfolio
7/1/93-
11/30/93 11,667 0.94+++ 3.92+++ 208 NA
11/30/94 15,869 0.94++ 5.21++ 419 NA
11/30/95 29,475 0.96++ 5.93++ 412 NA
11/30/96 37,207 0.97 6.11 338 NA
11/30/97 62,272 0.91 6.99 49 NA
High-Yield Bond Portfolio
2/9/93-
11/30/93 41,851 0.94+++ 9.43+++ 229 NA
11/30/94 55,803 0.92++ 11.07++ 225 NA
11/30/95 82,174 0.80 10.80 174 NA
11/30/96 113,229 0.77 9.41 107 NA
11/30/97 195,639 0.75 9.26 243 NA
Worldwide High Income Portfolio
10/28/94-
11/30/94 10,478 1.60+++ 4.48+++ 2 NA
11/30/95 21,515 1.30 10.46 176 NA
11/30/96 49,204 1.18 10.45 177 NA
11/30/97 125,224 1.10 7.58 146 NA
SunAmerica Balanced Portfolio
6/3/96-
11/30/96 10,224 1.00+++ 1.92+++ 40 .0600
11/30/97 44,621 1.00 1.82 143 .0600
Balanced/Phoenix Investment Portfolio
10/28/94-
11/30/94 1,516 1.00+++ 4.25+++ 10 NA
11/30/95 32,429 0.98++ 3.08++ 153 NA
11/30/96 70,021 0.84 2.74 194 .0589
11/30/97 95,721 0.82 2.63 271 .0526
</TABLE>
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of Anchor
National Life Insurance Company and First SunAmerica Life Insurance
Company. If such expenses had been included, total return would have
been lower for each period presented.
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995, 1996 and 1997,
the investment adviser waived a portion of or all fees and assumed a
portion of or all expenses for the portfolios. If all fees and expenses
had been incurred by the portfolios, the ratio of expenses to average
net assets and the ratio of net investment income to average net assets
would have been as follows:
<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME
----------------------------------------- --------------------------------------------
1993 1994 1995 1996 1997 1993 1994 1995 1996 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
----------------------------------------- --------------------------------------------
Cash Management Portfolio.......... 1.10% 0.78% 0.67% 0.62% 0.63% 2.14% 3.65% 5.32% 4.90% 5.06%
Global Bond Portfolio.............. 1.81 1.06 0.95 0.89 0.90 3.10 5.29 5.89 5.44 4.70
Corporate Bond Portfolio........... 1.81 1.09 0.97 0.97 0.91 3.05 5.06 5.92 6.11 6.99
High-Yield Bond Portfolio.......... 1.29 0.93 0.80 0.77 0.75 9.08 11.06 10.80 9.41 9.26
Worldwide High Income Portfolio.... -- 2.26 1.30 1.18 1.10 -- 3.82 10.46 10.45 7.58
SunAmerica Balanced Portfolio...... -- -- -- 1.43 1.00 -- -- -- 1.49 1.82
Balanced/Phoenix Investment Counsel
Portfolio........................ -- 6.82 1.11 0.84 0.82 -- (1.57) 2.95 2.74 2.63
</TABLE>
See Notes to Financial Statements
- ---------------------
128
<PAGE> 130
- ---------------------
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS* -- (CONTINUED)
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET TOTAL DIVIDENDS DIVIDENDS NET
ASSET NET NET REALIZED & FROM DECLARED FROM FROM NET ASSET
VALUE INVEST- UNREALIZED INVEST- NET REALIZED VALUE
PERIOD BEGINNING MENT GAIN (LOSS) ON MENT INVESTMENT GAIN ON END OF TOTAL
ENDED OF PERIOD INCOME** INVESTMENTS OPERATIONS INCOME INVESTMENTS PERIOD RETURN***
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Asset Allocation Portfolio
7/1/93-
11/30/93 $ 10.00 $ 0.08 $ 0.28 $ 0.36 $ -- $ -- $10.36 3.60%
11/30/94 10.36 0.29 (0.25) 0.04 (0.05) (0.03) 10.32 0.30
11/30/95 10.32 0.42 2.24 2.66 (0.20) (0.04) 12.74 26.10
11/30/96 12.74 0.48 2.00 2.48 (0.31) (0.39) 14.52 20.27
11/30/97 14.52 0.44 2.55 2.99 (0.40) (0.90) 16.21 21.97
Utility Portfolio
6/3/96-
11/30/96 10.00 0.24 0.51 0.75 -- -- 10.75 7.50
11/30/97 10.75 0.36 1.91 2.27 (0.09) (0.02) 12.91 21.26
Growth-Income Portfolio
2/9/93-
11/30/93 10.00 0.12 0.49 0.61 -- -- 10.61 6.10
11/30/94 10.61 0.13 (0.36) (0.23) (0.04) (0.01) 10.33 (2.20)
11/30/95 10.33 0.17 3.31 3.48 (0.10) -- 13.71 33.89
11/30/96 13.71 0.18 3.48 3.66 (0.12) (0.43) 16.82 27.41
11/30/97 16.82 0.17 4.69 4.86 (0.13) (0.73) 20.82 30.11
Federated Value Portfolio
6/3/96-
11/30/96 10.00 0.07 1.01 1.08 -- -- 11.08 10.80
11/30/97 11.08 0.13 2.72 2.85 (0.03) -- 13.90 25.75
Venture Value Portfolio
10/28/94-
11/30/94 10.00 0.03 (0.25) (0.22) -- -- 9.78 (2.20)
11/30/95 9.78 0.17 3.55 3.72 (0.03) -- 13.47 38.17
11/30/96 13.47 0.18 3.46 3.64 (0.09) (0.12) 16.90 27.44
11/30/97 16.90 0.19 4.73 4.92 (0.09) (0.26) 21.47 29.62
Putnam Growth Portfolio
2/9/93-
11/30/93 10.00 0.02 0.02 0.04 -- -- 10.04 0.40
11/30/94 10.04 0.03 (0.01) 0.02 (0.01) -- 10.05 0.19
11/30/95 10.05 (0.01) 3.09 3.08 (0.03) -- 13.10 30.66
11/30/96 13.10 -- 2.61 2.61 -- -- 15.71 19.92
11/30/97 15.71 0.03 3.93 3.96 -- (0.52) 19.15 26.01
Growth/Phoenix Investment Counsel Portfolio
2/9/93-
11/30/93 10.00 0.17 0.61 0.78 -- -- 10.78 7.80
11/30/94 10.78 0.16 (0.87) (0.71) (0.06) -- 10.01 (6.64)
11/30/95 10.01 0.12 3.14 3.26 (0.13) -- 13.14 32.92
11/30/96 13.14 0.11 2.16 2.27 (0.11) (0.91) 14.39 18.40
11/30/97 14.39 0.11 2.48 2.59 (0.10) (1.26) 15.62 19.78
NET RATIO OF NET
ASSETS RATIO OF INVESTMENT
END OF EXPENSES TO INCOME TO AVERAGE
PERIOD PERIOD AVERAGE NET AVERAGE NET PORTFOLIO COMMISSION
ENDED (000'S) ASSETS ASSETS TURNOVER PER SHARE
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Asset Allocation Portfolio
7/1/93-
11/30/93 $ 35,590 0.99%+++ 2.33%+++ 71% $ NA
11/30/94 106,856 0.94++ 2.71++ 152 NA
11/30/95 199,836 0.81 3.62 207 NA
11/30/96 316,388 0.74 3.66 200 .0587
11/30/97 526,585 0.68 2.88 176 .0591
Utility Portfolio
6/3/96-
11/30/96 6,299 1.05+++ 4.41+++ 24 .0439
11/30/97 24,366 1.05++ 3.15++ 77 .0365
Growth-Income Portfolio
2/9/93-
11/30/93 45,080 0.82+++ 1.59+++ 27 NA
11/30/94 84,899 0.81++ 1.26++ 59 NA
11/30/95 171,281 0.77 1.42 59 NA
11/30/96 325,463 0.72 1.21 82 .0597
11/30/97 622,062 0.65 0.89 44 .0555
Federated Value Portfolio
6/3/96-
11/30/96 12,460 1.05+++ 1.26+++ 30 .0520
11/30/97 59,024 1.03 1.03 46 .0494
Venture Value Portfolio
10/28/94-
11/30/94 4,449 1.10+++ 3.93+++ -- NA
11/30/95 154,908 1.00++ 1.43++ 18 NA
11/30/96 516,413 0.85 1.21 22 .0598
11/30/97 1,140,053 0.79 0.98 22 .0599
Putnam Growth Portfolio
2/9/93-
11/30/93 42,911 0.97+++ 0.32+++ 40 NA
11/30/94 75,342 0.96++ 0.31++ 54 NA
11/30/95 115,276 0.93 (0.05) 52 NA
11/30/96 160,073 0.90 (0.02) 63 .0443
11/30/97 234,726 0.91 0.18 125 .0324
Growth/Phoenix Investment Counsel Portfolio
2/9/93-
11/30/93 65,032 0.82+++ 2.20+++ 165 NA
11/30/94 104,194 0.81++ 1.52++ 211 NA
11/30/95 149,910 0.76 1.01 229 NA
11/30/96 186,368 0.74 0.82 164 .0534
11/30/97 218,496 0.73 0.77 217 .0530
</TABLE>
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of Anchor
National Life Insurance Company and First SunAmerica Life Insurance
Company. If such expenses had been included, total return would have
been lower for each period presented.
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995, 1996 and 1997,
the investment adviser waived a portion of or all fees and assumed a
portion of or all expenses for the portfolios. If all fees and expenses
had been incurred by the portfolios, the ratio of expenses to average
net assets and the ratio of net investment income (loss) to average net
assets would have been as follows:
<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME (LOSS)
----------------------------------------- ---------------------------------------------
1993 1994 1995 1996 1997 1993 1994 1995 1996 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
----------------------------------------- ---------------------------------------------
Asset Allocation Portfolio........ 1.67% 0.94% 0.81% 0.74% 0.68% 1.65% 2.71% 3.62% 3.66% 2.88%
Utility Portfolio................. -- -- -- 1.93 1.24 -- -- -- 3.53 2.96
Growth-Income Portfolio........... 1.40 0.89 0.77 0.72 0.65 1.01 1.18 1.42 1.21 0.89
Federated Value Portfolio......... -- -- -- 1.57 1.03 -- -- -- 0.74 1.03
Venture Value Portfolio........... -- 3.89 1.02 0.85 0.79 -- 1.14 1.41 1.21 0.98
Putnam Growth Portfolio........... 1.46 1.05 0.93 0.90 0.91 (0.17) 0.22 (0.05) (0.02) 0.18
Growth/Phoenix Investment Counsel
Portfolio....................... 1.28 0.87 0.76 0.74 0.73 1.74 1.46 1.01 0.82 0.77
</TABLE>
See Notes to Financial Statements
---------------------
129
<PAGE> 131
- ---------------------
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS* -- (CONTINUED)
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET NET TOTAL DIVIDENDS DIVIDENDS NET
ASSET INVEST- NET REALIZED & FROM DECLARED FROM FROM NET ASSET
VALUE MENT UNREALIZED INVEST- NET REALIZED VALUE
PERIOD BEGINNING INCOME GAIN (LOSS) ON MENT INVESTMENT GAIN ON END OF TOTAL
ENDED OF PERIOD (LOSS)** INVESTMENTS OPERATIONS INCOME INVESTMENTS PERIOD RETURN***
- --------------------------------------------------------------------------------------------------------------------------------
<S> <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%
11/30/94 10.92 0.04 (0.14) (0.10) (0.01) (0.17) 10.64 (0.93)
11/30/95 10.64 0.07 5.08 5.15 (0.03) (0.13) 15.63 48.91
11/30/96 15.63 0.08 4.07 4.15 (0.04) (1.01) 18.73 28.05
11/30/97 18.73 0.16 4.76 4.92 (0.05) (1.04) 22.56 27.80
Global Equities Portfolio
2/9/93-
11/30/93 10.00 0.03 0.96 0.99 -- -- 10.99 9.90
11/30/94 10.99 0.05 0.71 0.76 (0.01) (0.07) 11.67 6.87
11/30/95 11.67 0.12 1.64 1.76 (0.08) (0.29) 13.06 15.58
11/30/96 13.06 0.14 2.19 2.33 (0.14) (0.33) 14.92 18.21
11/30/97 14.92 0.09 1.79 1.88 (0.13) (0.69) 15.98 13.30
International Growth and Income Portfolio
6/2/97-
11/30/97 10.00 0.03 0.38 0.41 -- -- 10.41 4.10
International Diversified Equities Portfolio
10/28/94-
11/30/94 10.00 0.01 (0.23) (0.22) -- -- 9.78 (2.20)
11/30/95 9.78 0.07 0.38 0.45 (0.08) -- 10.15 4.63
11/30/96 10.15 0.05 1.43 1.48 (0.26) -- 11.37 14.85
11/30/97 11.37 0.09 0.28 0.37 (0.31) (0.10) 11.33 3.52
Real Estate Portfolio
6/2/97-
11/30/97 10.00 0.16 1.37 1.53 -- -- 11.53 15.30
Aggressive Growth Portfolio
6/3/96-
11/30/96 10.00 0.02 0.34 0.36 -- -- 10.36 3.60
11/30/97 10.36 0.01 1.40 1.41 (0.01) -- 11.76 13.62
Emerging Markets Portfolio
6/2/97-
11/30/97 10.00 0.06 (2.03) (1.97) -- -- 8.03 (19.70)
<CAPTION>
NET RATIO OF NET
ASSETS RATIO OF INVESTMENT
END OF EXPENSES TO INCOME TO AVERAGE
PERIOD PERIOD AVERAGE NET AVERAGE NET PORTFOLIO COMMISSION
ENDED (000'S) ASSETS ASSETS TURNOVER PER SHARE
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Alliance Growth Portfolio
2/9/93-
11/30/93 $ 23,256 0.82%+++ 0.61%+++ 73% $ NA
11/30/94 53,213 0.82++ 0.37++ 146 NA
11/30/95 167,870 0.79 0.51 138 NA
11/30/96 381,367 0.71 0.51 121 .0649
11/30/97 704,533 0.65 0.37 110 .0617
Global Equities Portfolio
2/9/93-
11/30/93 43,737 1.50+++ 0.38+++ 58 NA
11/30/94 136,758 1.28 0.42 67 NA
11/30/95 165,752 1.14 1.02 106 NA
11/30/96 246,482 1.03 1.04 70 .0256
11/30/97 341,639 0.95 0.58 115 .0284
International Growth and Income Portfolio
6/2/97-
11/30/97 42,844 1.60+++ 0.61+++ 19 .0030
International Diversified Equities Portfolio
10/28/94-
11/30/94 12,438 1.70+++ 1.60+++ -- NA
11/30/95 48,961 1.70++ 0.76++ 52 NA
11/30/96 157,008 1.59 0.47 53 .0023
11/30/97 248,927 1.35 0.82 56 .0008
Real Estate Portfolio
6/2/97-
11/30/97 29,565 1.25+++ 3.25+++ 7 .0600
Aggressive Growth Portfolio
6/3/96-
11/30/96 35,124 1.05+++ 0.46+++ 47 .0600
11/30/97 103,603 0.90 (0.13) 221 .0600
Emerging Markets Portfolio
6/2/97-
11/30/97 19,979 1.90+++ 1.33+++ 49 .0011
</TABLE>
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of Anchor
National Life Insurance Company and First SunAmerica Life Insurance
Company. If such expenses had been included, total return would have
been lower for each period presented.
+ Annualized
++ During the periods ended November 30, 1993, 1994, 1995, 1996 and 1997,
the investment adviser waived a portion of or all fees and assumed a
portion of or all expenses for the portfolios. If all fees and expenses
had been incurred by the portfolios, the ratio of expenses to average net
assets and the ratio of net investment income (loss) to average net
assets would have been as follows:
<TABLE>
<CAPTION>
EXPENSES NET INVESTMENT INCOME (LOSS)
----------------------------------------- ---------------------------------------------
1993 1994 1995 1996 1997 1993 1994 1995 1996 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
----------------------------------------- ---------------------------------------------
Alliance Growth Portfolio......... 1.56% 0.96% 0.79% 0.71% 0.65% (0.13)% 0.23% 0.51% 0.51% 0.37%
Global Equities Portfolio......... 2.52 1.28 1.14 1.03 0.95 (0.64) 0.42 1.02 1.04 0.58
International Growth and Income
Portfolio+...................... -- -- -- -- 2.02 -- -- -- -- 0.19
International Diversified Equities
Portfolio....................... -- 3.50 2.09 1.59 1.35 -- (0.20) 0.37 0.47 0.82
Real Estate Portfolio+............ -- -- -- -- 1.36 -- -- -- -- 3.14
Aggressive Growth Portfolio....... -- -- -- 1.09 0.90 -- -- -- 0.42 (0.13)
Emerging Markets Portfolio+....... -- -- -- -- 2.60 -- -- -- -- 0.63
</TABLE>
See Notes to Financial Statements
- ---------------------
130
<PAGE> 132
- ---------------------
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, Putnam Growth Portfolio (formerly Provident Growth
Portfolio), Global Equities Portfolio, International Growth and Income
Portfolio, International Diversified Equities Portfolio, Real Estate Portfolio,
Aggressive Growth Portfolio and Emerging Markets Portfolio (constituting the
twenty-one portfolios of SunAmerica Series Trust, hereafter referred to as the
"Fund") at November 30, 1997, 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, 1997 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 14, 1998
---------------------
131
<PAGE> 133
- ---------------------
SUNAMERICA SERIES TRUST
SHAREHOLDERS TAX INFORMATION (UNAUDITED)
Certain tax information regarding the SunAmerica Series Trust is required to
be provided to the shareholders based upon each Fund's income and distributions
for the year ended November 30, 1997.
During the year ended November 30, 1997 the Funds paid the following dividends
per share along with the percentage of ordinary income dividends that qualified
for the 70% dividends received deductions for corporations:
<TABLE>
<CAPTION>
QUALIFYING % FOR
NET NET NET THE
TOTAL INVESTMENT SHORT-TERM LONG-TERM 70% DIVIDENDS
DIVIDENDS INCOME CAPITAL GAINS CAPITAL GAINS RECEIVED DEDUCTION
--------- ---------- ------------- ------------- ------------------
<S> <C> <C> <C> <C> <C>
Cash Management Portfolio................. $0.56 $ 0.56 $ -- $ -- --%
Global Bond Portfolio..................... 0.79 0.74 0.03 0.02 --
Corporate Bond Portfolio.................. 0.53 0.53 -- -- 1.67
High-Yield Bond Portfolio................. 0.74 0.74 -- -- 10.52
Worldwide High Income Portfolio........... 1.81 0.90 0.84 0.07 0.35
SunAmerica Balanced Portfolio............. 0.06 0.04 0.02 -- 10.12
Balanced/Phoenix Investment Counsel
Portfolio............................... 0.64 0.23 0.29 0.12 11.37
Asset Allocation Portfolio................ 1.30 0.40 0.45 0.45 19.12
Utility Portfolio......................... 0.11 0.09 0.02 -- 42.08
Growth-Income Portfolio................... 0.86 0.13 0.27 0.46 42.64
Federated Value Portfolio................. 0.03 0.03 -- -- 33.24
Venture Value Portfolio................... 0.35 0.09 0.01 0.25 99.86
Putnam Growth Portfolio................... 0.52 -- -- 0.52 --
Growth/Phoenix Investment Counsel
Portfolio............................... 1.36 0.10 0.95 0.31 9.30
Alliance Growth Portfolio................. 1.09 0.05 0.60 0.44 17.04
Global Equities Portfolio................. 0.82 0.13 0.29 0.40 17.03
International Growth and Income
Portfolio............................... -- -- -- -- --
International Diversified Equities
Portfolio............................... 0.42 0.31 0.04 0.07 --
Real Estate Portfolio..................... -- -- -- -- --
Aggressive Growth Portfolio............... 0.01 0.01 -- -- --
Emerging Markets Portfolio................ -- -- -- -- --
</TABLE>
The Global Equities and International Diversified Equities Portfolios make an
election under Internal Revenue Code Section 853 to pass through foreign taxes
paid by the Portfolios to its shareholders. The total amount of foreign taxes
passed through to the shareholders for the fiscal year ended November 30, 1997
were $378,404 and $488,607 respectively. The gross foreign source income for
information reporting is $3,020,961 and $4,258,469 respectively.
- ---------------------
132
<PAGE> 134
- ---------------------
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 since the portfolio inception. Following each
graph is a discussion of portfolio performance and factors
affecting it over the last one-year period.
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 has performed well for the year
ended November 30, 1997. The portfolio's return was 5.22%, versus
the Lipper Analytical composite return of 4.47%.
SunAmerica Asset Management has a favorable outlook for U.S.
interest rates. The manager expects that the financial crisis in
Asia will slow the U.S. economy, which in combination with a
strong U.S. dollar should keep inflation low. The focus of the
portfolio will be finding the best relative value securities and
structuring the portfolio to be flexible enough to meet changing
economic conditions.
Past performance is no guarantee of future results.
---------------------
133
<PAGE> 135
GOLDMAN SACHS ASSET MANAGEMENT INTERNATIONAL
Global Bond Portfolio
<TABLE>
<CAPTION>
Measurement Period J.P. Morgan Global
(Fiscal Year Covered) Global Bond Portfolio Gov't Bond Index*
<S> <C> <C>
7/1/93 10000 10000
8/31/93 10200 10296
11/30/93 10300 10324
2/28/94 10190 10413
5/31/94 9942 10270
8/31/94 9930 10463
11/30/94 9973 10746
2/28/95 10297 11086
5/31/95 10965 11802
8/31/95 11102 12007
11/30/95 11608 12548
2/28/96 11734 12630
5/31/96 11896 12772
8/31/96 12156 13069
11/30/96 12879 13809
2/28/97 13014 13961
5/31/97 13078 14127
8/31/97 13503 14590
11/30/97 13964 15094
</TABLE>
GLOBAL BOND PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/97
- -------------------------------------------------
1-Year 8.43%
Since Inception (7/1/93) 7.85%
- -------------------------------------------------
(1) The J.P. Morgan Global Government Bond Index tracks the performance of bonds
throughout the world, including issues from Europe, Australia, the Far East
and the United States.
The Global Bond Portfolio returned 8.43% over the one-year period
ended November 30, 1997, versus a return of 9.25% for the J.P.
Morgan Global Government Bond Index (hedged into U.S. dollars).
One of the major factors affecting both the performance of the
portfolio and the global bond market was the Asian financial
crisis. While global equities were battered by Asia's financial
woes, the recent Asian turmoil actually helped to buoy global bond
markets. In a "flight to quality," many equity investors turned to
bonds of developed nations that offered protection during the
fallout. In particular, U.S. bonds benefited as the crisis in
Southeast Asia dampened fears of higher domestic inflation over
the near term. Federal Reserve Chairman Alan Greenspan also helped
to ease concerns among U.S. fixed income investors, when he
indicated that the Pacific Rim problems should have little effect
on the overall health of the U.S. economy.
In the second half of 1997, Goldman Sachs increased the
portfolio's allocations to the U.S., German, and Italian markets,
while decreasing its percentage of holdings in Japan and the U.K.
During the 12-month period ended November 30, 1997, the portfolio
benefited particularly from an overweight position in Italian
bonds. A favorable inflation landscape and the possibility of a
downward trend in short-term European Monetary Union interest
rates contributed to the strength of the Italian markets. Another
strategic move was the initiation of an overweight position in New
Zealand in June. At the time, Goldman Sachs believed that a
pending slowdown in the New Zealand economy would lead to lower
long-term interest rates. However, this position has since been
reduced given the liquidity restraints in Japan, where
institutions are major holders of New Zealand bonds.
Past performance is no guarantee of future results.
- ---------------------
134
<PAGE> 136
FEDERATED INVESTORS
Corporate Bond Portfolio
<TABLE>
<CAPTION>
Lehman Brothers Lehman Brothers Lipper
Aggregate Index Corporate Bond Corporate BBB
Corporate Bond (1) (2) Rated Index(3)
<S> <C> <C> <C> <C>
7/1/93 10000 10000 10000 10000
10200 10231 10323 10341
11/30/93 10190 10209 10271 10351
10180 10222 10284 10368
5/31/94 9843 9888 9836 9908
10014 10075 10070 10070
11/30/94 9843 9896 9845 9868
10337 10404 10429 10324
5/31/95 10942 11024 11196 11064
11112 11215 11428 11261
11/30/95 11517 11643 11937 11740
11670 11677 11922 11729
5/31/96 11404 11507 11701 11526
11559 11673 11859 11669
11/30/96 12266 12347 12707 12445
12230 12303 12602 12398
5/31/97 12449 12488 12736 12521
12926 12849 13192 12959
11/30/97 13402 13287 13669 13385
</TABLE>
CORPORATE BOND PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/97
- -------------------------------------------------
1-Year 9.26%
Since Inception (7/1/93) 6.85%
- -------------------------------------------------
(1) The Lehman Brothers Aggregate Index combines several Lehman Brothers
fixed-income indices 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 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.
For the 12-month period ended November 30, 1997, the Corporate
Bond Portfolio generated a return of 9.26%. In comparison, the
Lehman Brothers Corporate Bond Index returned 7.57%, the Lehman
Brothers Aggregate Index returned 7.58%, and the Lipper Corporate
Debt Funds BBB Rated Index produced a return of 7.55% for the same
period.
The portfolio's positive performance was affected by two distinct
interest rate trends during the fiscal year. The initial six
months saw interest rates rise in response to
stronger-than-anticipated economic activity. As business
conditions improved, corporate securities outperformed comparable
maturity U.S. Treasuries. The situation completely reversed in the
second half of 1997. Economic growth slowed, interest rates fell,
and corporate securities underperformed Treasuries. With overall
rates declining for the period, the fiscal year was a positive one
for high-quality, fixed-income securities.
Another factor behind the portfolio's performance was the Asian
financial difficulties. The foreign currency and stock market
crisis which started in Southeast Asia and spread to Latin America
created a strong "flight to quality." U.S. bonds became one of the
most attractive investments in the world, as investors, at least
temporarily, shunned the domestic and foreign stock markets along
with the foreign bond markets.
In terms of credit quality, the portfolio manager continued to
maintain approximately 25% of total fund assets in high-yield,
lower-rated corporate securities. This minority, but still
significant, position helped generate not only an above-average
income distribution for shareholders, but also enhanced price
appreciation as high-yield bonds outperformed higher quality bonds
over the past year.
Past performance is no guarantee of future results.
---------------------
135
<PAGE> 137
SUNAMERICA ASSET MANAGEMENT CORP.
High-Yield Bond Portfolio
<TABLE>
<CAPTION>
Measurement Period High-Yield Bond Merrill Lynch High-
(Fiscal Year Covered) Portfolio Yield Master Index*
<S> <C> <C>
2/9/93 10000 10000
2/28/93 10140 10189
5/31/93 10490 10581
8/31/93 10810 10999
11/30/93 11120 11318
2/28/94 11540 11626
5/31/94 10884 11250
8/31/94 10760 11449
11/30/94 10647 11376
2/28/95 11070 12028
5/31/95 11651 12870
8/31/95 11583 13196
11/30/95 11993 13573
2/28/96 12517 14030
5/31/96 12652 14098
8/31/96 12952 14427
11/30/96 13775 15200
2/26/97 14349 15647
5/31/97 14388 15965
8/31/97 15202 16508
11/30/97 15776 17115
</TABLE>
HIGH-YIELD BOND PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/97
- -------------------------------------------------
1-Year 14.53%
Since Inception (2/9/93) 9.95%
- -------------------------------------------------
(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.
The High-Yield Bond Portfolio performed well for the year ended
November 30, 1997. With an annual return of 14.53%, the portfolio
compared favorably to the Merrill Lynch High-Yield Master Index,
which returned 12.60% for the period.
While both the portfolio and the high-yield bond market achieved
double-digit gains during the period, they were adversely affected
by the October 27th sell-off in global equities resulting from the
recent turmoil in Asia. High-yield bonds issued by companies in
cyclical industries such as paper, steel, and chemicals have been
hit especially hard, since many of these companies have critical
operations in Southeast Asia and other emerging markets. In
addition, while equities have generally recaptured their losses
from the October 27th downturn, the high-yield bond market remains
weaker than before the sell-off.
The outlook for the high-yield market depends on the resolution of
the Asian economic difficulties. Given the uncertainties involved,
the manager remains focused on obtaining current income within
reasonable risk parameters. The result has been a decrease in the
portfolio's allocation to preferred stock and zero coupon bonds.
Past performance is no guarantee of future results.
- ---------------------
136
<PAGE> 138
MORGAN STANLEY ASSET MANAGEMENT INC.
Worldwide High Income Portfolio
<TABLE>
<CAPTION>
Lehman
World Wide Brothers First Boston
Measurement Period High Income Aggregate Blended High Yield JP Morgan
(Fiscal Year Covered) Portfolio Index(1) Index(2) Index(3) EMBI Plus(4)
<S> <C> <C> <C> <C> <C>
10/28/94 10000 10000 10000 10000 10000
2/28/95 9856 10513 9441 10463 8488
5/31/95 10775 11140 10583 11122 10008
8/31/95 11190 11332 10960 11400 10467
11/30/95 11544 11765 11429 11714 11072
2/28/96 12265 11799 12161 12152 12054
5/31/96 12802 11627 12812 12284 13226
8/31/96 13417 11795 13560 12554 14490
11/30/96 14645 12477 14695 13078 16321
2/28/97 15487 12430 15524 13683 17404
5/31/97 16024 12596 15923 13925 17987
8/31/97 17114 12979 16693 14491 19104
11/30/97 16721 13423 16701 14882 18556
</TABLE>
WORLDWIDE HIGH INCOME PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/97
- -------------------------------------------------
1-Year 14.17%
Since Inception (10/28/94) 18.08%
- -------------------------------------------------
(1) The Blended Index combines 50% of the First Boston High-Yield Index and
50% of the J.P. Morgan Emerging Markets Bond Index Plus.
(2) 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.
(3) The J.P. Morgan Emerging Markets Bond Index (EMBI) Plus is a
market-weighted index composed of all Brady Bonds outstanding; it includes
Argentina, Brazil, Mexico, Nigeria, the Philippines, and Venezuela.
For the year ended November 30, 1997, the Worldwide High Income
Portfolio returned 14.17%, compared with the 13.79% return of the
First Boston High-Yield Index, the 13.69% return of the J.P.
Morgan Emerging Markets Bond Index Plus, and the 13.65% return of
the Blended Index.
The portfolio's strong performance occurred in an environment of
generally falling U.S. interest rates and a strong U.S. equity
market. More interestingly, it occurred despite the turmoil which
plagued many emerging markets in the latter half of 1997. While
the U.S. economy experienced moderate growth and low inflation,
the economic picture in the rest of the world was not as strong.
Economic turmoil in virtually the entire Asian region, which
gradually led to a lack of investor confidence in other emerging
countries such as Brazil and Russia, caused both the debt and
equity markets in those countries to tumble.
The portfolio, which had a higher weighting in emerging debt
relative to high-yield bonds, outperformed its benchmark Blended
Index despite the sell-off in emerging markets that occurred in
late 1997. The portfolio had no exposure to bonds in the Asian
region throughout most of the turmoil and, as always, remained
highly diversified, which prevented large exposures to any one
country or market.
Past performance is no guarantee of future results.
---------------------
137
<PAGE> 139
SUNAMERICA ASSET MANAGEMENT CORP.
SunAmerica Balanced Portfolio
<TABLE>
<CAPTION>
Lehman Brothers SunAmerica
Measurement Period Aggregate S&P 500 Balanced
(Fiscal Year Covered) Index(3) Blended Index Index(2) Portfolio
<S> <C> <C> <C> <C>
3-Jun 10000 10000 10000 10000
31-Aug 10144 9954 9797 9880
30-Nov 10730 11076 11438 11130
28-Feb 10690 11380 12005 11850
31-May 10833 11939 12942 12003
31-Aug 11162 12515 13780 12928
30-Nov 11544 13148 14701 13521
</TABLE>
SUNAMERICA BALANCED PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/97
- --------------------------------------------
1-year 21.48%
Since Inception (6/3/96) 22.34%
- --------------------------------------------
(1) The Blended Index consists of 55% S&P 500 Index, 35% Lehman Brothers
Aggregate Index, and 10% Treasury Bills. Treasury Bills are short-term
securities with maturities of one-year or less issued by the U.S.
Government.
(2) 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.
(3) The Lehman Brothers Aggregate Index combines several Lehman Brothers
fixed-income indices 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 SunAmerica Balanced Portfolio had an excellent year. For the
12 months ended November 30, 1997, the portfolio had a return of
21.48%. In comparison, the S&P 500 Index, the Lehman Brothers
Aggregate Index, and the Blended Index returned 28.59%, 7.58%, and
18.69%, respectively, for the same period.
The portfolio's performance during the past 12 months was aided by
significant positions in both the financial and health care
sectors. The portfolio's largest equity holdings as of November
30, 1997, were AT&T Corp., IDEC Pharmaceuticals Corp., Lucent
Technologies, Inc., Wells Fargo & Co., and Summit Bancorp.
Looking forward, the portfolio manager continues to focus on
sectors that are expected to produce favorable earnings in any
economic environment. Research will concentrate on companies with
solid fundamentals and significant cash flow growth. The manager
continues to overweight the financial and pharmaceutical sectors,
holding companies such as Pfizer, Inc. and Eli Lilly based on
consistent growth potential and new product launches. Effective
asset allocation also remains critical. In 1998, the manager
expects to increase its fixed income position to take advantage of
the bond market's currently attractive potential.
Past performance is no guarantee of future results.
- ---------------------
138
<PAGE> 140
PHOENIX INVESTMENT COUNSEL, INC.
Balanced/Phoenix Investment Counsel Portfolio
<TABLE>
<CAPTION>
Balanced/Phoenix
Investment Lehman Brothers
Measurement Period Counsel Blended Aggregate Index S&P 500 Index
(Fiscal Year Covered) Portfolio Index(1) (2) (3)
<S> <C> <C> <C> <C>
10/28/94 10000 10000 10000 10000
2/28/95 10509 10639 10513 10817
5/31/95 11112 11473 11140 11923
8/31/95 11755 11935 11332 12636
11/30/95 12539 12661 11765 13698
2/28/96 12965 13131 11799 14571
5/31/96 13059 13445 11627 15313
8/31/96 12776 13383 11795 15002
11/30/96 14262 14892 12477 17514
2/28/97 14409 15300 12430 18383
5/31/97 14874 16052 12595 18817
8/31/97 15540 16826 12979 21102
11/30/97 16191 17676 13423 22511
</TABLE>
BALANCED PHOENIX INVESTMENT COUNSEL PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/97
- -----------------------------------------------
1-year 13.52%
Since Inception (10/28/94) 16.86%
- -----------------------------------------------
(1) The Blended Index consists of 35% Lehman Brothers Aggregate Index, 55% S&P
500 Index, and 10% Treasury Bills. Treasury Bills are short-term securities
with maturities of one-year or less issued by the U.S. Government.
(2) The Lehman Brothers Aggregate Index combines several Lehman Brothers
fixed-income indices 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.
The Balanced/Phoenix Investment Counsel Portfolio posted
double-digit gains over the latest fiscal period, but lagged the
benchmark Blended Index which consists of 55% S&P 500 Index, 35%
Lehman Brothers Aggregate Bond Index, and 10% 90-day T-bills. For
the 12 months ended November 30, 1997, the portfolio earned
13.52%, versus the benchmark return of 18.69%.
Positive performance factors included solid stock selection and
modest, overweight positions in the energy and financial sectors.
Areas which held back the portfolio's performance included
weaker-than-expected results for technology and heath care stocks.
With interest rates trending downward since mid-1997, Phoenix's
decision to increase the size and duration of the portfolio's bond
holdings boosted returns. Toward the end of the year, however,
Phoenix took profits in the fixed income markets and ended the
period with an asset allocation of 56% stocks, 33% bonds, and 11%
cash equivalents.
Past performance is no guarantee of future results.
---------------------
139
<PAGE> 141
GOLDMAN SACHS ASSET MANAGEMENT
Asset Allocation Portfolio
<TABLE>
<CAPTION>
Asset Lehman Brothers
Measurement Period Allocation Aggregate
(Fiscal Year Covered) Portfolio Blended Index(1) Index(2) S&P 500 Index(3)
<S> <C> <C> <C> <C>
1-Jul 10000 10000 10000 10000
10250 10071 10231 9959
30-Nov 10360 10082 10209 9991
10800 10197 10222 10173
31-May 10522 9971 9888 10015
10955 10340 10075 10504
30-Nov 10391 10027 9896 10097
11177 10724 10404 10922
31-May 11961 11637 11024 12039
12620 12134 11215 12759
30-Nov 13103 12932 11643 13831
13700 13439 11677 14713
31-May 14055 13766 11507 15461
14033 13680 11673 15147
30-Nov 15759 15362 12347 17684
16617 15707 12303 18561
31-May 17573 16823 12468 20010
19043 17481 12849 21306
30-Nov 19221 18431 13287 22729
</TABLE>
ASSET ALLOCATION PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/97
- -------------------------------------------------
1-year 21.97%
Single Inception (7/1/93) 15.94%
- -------------------------------------------------
(1) The 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 indices 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.
The Asset Allocation Portfolio returned 21.97% over the one-year
period ended November 30, 1997, outperforming its benchmark (a
blended index consisting of 60% S&P 500 Index and 40% Lehman
Brothers Aggregate Index) at 19.98%.
Among its equity holdings, the portfolio has the largest
weightings in the financial, consumer durable, capital goods, and
technology sectors. Since mid-1997, the biggest move has been an
increase of approximately 5% in the weighting of the financial
sector, which now makes up 21.2% of the portfolio's equity portion
as of November 30, 1997. In terms of fixed income, the portfolio's
largest allocation is in the mortgage-backed sector (33.0%),
followed closely by corporate bonds (27.4%).
Since the market sell-off on October 27, 1997, concerns regarding
the impact of the Asian crisis on U.S. corporate earnings have
grown. Goldman Sachs' strategy of investing in those issues whose
valuations are low when compared to an industry group or the
market as a whole has helped to lessen the negative impact of the
Asian crisis on the portfolio. Given the global fallout, however,
it appears that U.S. corporate profit growth is poised for a
slowdown in 1998. In this environment, the manager will continue
to seek fundamentally sound organizations whose strong balance
sheets, market presence and management philosophies should
continue to make them attractive investments over the near and
intermediate term.
Past performance is no guarantee of future results.
- ---------------------
140
<PAGE> 142
FEDERATED INVESTORS
Utility Portfolio
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) Utility S&P 500 Index(1) Blended Index(2)
<S> <C> <C> <C>
3-Jun 10000 10000 10000
31-Aug 9850 9797 10138
30-Nov 10750 11438 11067
28-Feb 11240 12005 11811
31-May 11541 12942 11873
31-Aug 11672 13780 12054
30-Nov 13035 14701 14732
</TABLE>
UTILITY PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/97
- -----------------------------------------------
1-year 21.26%
Since Inception (10/28/94) 19.39%
- -----------------------------------------------
(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 S&P Communications
Service Index includes cellular and wireless service providers including
pagers, long distance providers and the telephone group companies (local
service providers).
The Utility Portfolio posted a double-digit return of 21.26% for
the year ended November 30, 1997 -- strong results considering the
environment for utilities at the beginning of 1997. In comparison,
the S&P 500 Index returned 28.59% for the period, while the
Blended Index returned 33.12%.
As 1997 began, utilities had trailed the overall stock market for
years. A booming stock market and uncertainty about the industry's
future after deregulation created a poor environment for the
group. Performance in the first quarter of the fiscal year
reflected this uncertainty, as the S&P 500 Index rose 5% while the
S&P Utility Index (consisting of electric and gas stocks) returned
0.67%. However, as the turmoil in Asia unfolded and U.S. stocks
hit record high valuations, the appeal of traditional utilities
has grown. The transition of the electric industry from monopoly
to competition has also progressed better than expected. Mergers
and acquisitions have supported all three utility sectors as
companies reduce costs and plan competitive strategies. In the
last two months alone, the S&P Utility Index and Communications
Index rose 8.1% and 16.0%, respectively, while the S&P 500 Index
returned 1.1%.
Federated remains optimistic about the prospects for the Utility
Portfolio in the year ahead. Valuations are especially appealing
for electric and gas stocks, and fundamentals are improving. This
is the opposite of conditions for the overall stock market, where
valuations remain near all-time highs and earnings risks seem to
be rising. The turmoil in Asia adds to the appeal of utilities, a
primarily domestic industry that is undergoing profound change
that will create opportunities. The portfolio is entering 1998
with substantially reduced overseas exposure and larger holdings
of domestic electric utilities and gas companies.
Past performance is no guarantee of future results.
---------------------
141
<PAGE> 143
ALLIANCE CAPITAL MANAGEMENT L.P.
Growth-Income Portfolio
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) Growth-Income Portfolio S&P 500 Index(1)
<S> <C> <C>
2/9/93 10000 10000
2/28/93 9970 9915
5/31/93 10190 10144
8/31/93 10630 10517
11/30/93 10610 10551
2/28/94 10730 10748
5/31/94 10618 10576
8/31/94 10959 11092
11/30/94 10377 10663
2/28/95 11230 11533
5/31/95 12141 12713
8/31/95 12921 13473
11/30/95 13894 14606
2/28/96 14775 15537
5/31/96 15356 16327
8/31/96 14966 15995
11/30/96 17703 18675
2/28/97 18660 19601
5/31/97 20244 21130
8/31/97 21871 22500
11/30/97 23032 24002
</TABLE>
GROWTH INCOME PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/97
- -------------------------------------------------
1-Year 30.11%
Since Inception (2/9/93) 18.95%
- -------------------------------------------------
(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.
In the 12 months ended November 30, 1997, the Growth-Income
Portfolio returned 30.11%, compared to 28.59% for the S&P 500
Index.
The portfolio's strong performance resulted from favorable stock
selection in a variety of industries. Stocks in the technology and
financial sectors, including Dell, Compaq, MBNA and Merrill Lynch,
made particularly important contributions to overall returns.
In the last year, the U.S. equity market has benefited from a
combination of strong economic growth and modest inflation. In
recent months, however, the economic trends have begun to look a
little less favorable. The slowdown in Asia threatens an important
source of profit growth for U.S. corporations. On the cost side,
evidence of upward pressure on wages is starting to appear. The
stock market's current valuation, however, does not appear to be
based on any concern about deteriorating fundamentals. The S&P 500
Index is now trading at 20 times its 1998 estimated earnings. With
P/E ratios at historically high levels, they may begin to trend
downward if investors become concerned about slowing global growth
or escalating wages. In this economic environment, the market is
likely to experience greater volatility in 1998 than in the last
several years.
Past performance is no guarantee of future results.
- ---------------------
142
<PAGE> 144
FEDERATED INVESTORS
Federated Value Portfolio
<TABLE>
<CAPTION>
Measurement Period Federated Value
(Fiscal Year Covered) Portfolio S&P 500 Index 1
<S> <C> <C>
3-Jun 10000 10000
31-Aug 9620 9797
30-Nov 11080 11438
28-Feb 11540 12005
31-May 12369 12842
31-Aug 13141 13780
30-Nov 13933 14701
</TABLE>
FEDERATED VALUE PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/97
- -------------------------------------------------
1-year 25.75%
Since Inception (6/3/96) 24.82%
- -------------------------------------------------
(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.
For the fiscal year ended November 30, 1997, the Federated Value
Portfolio posted a return of 25.75%, versus 28.59% for the S&P 500
Index.
Although the U.S. stock market continued to show solid strength in
1997, price fluctuations on a daily basis have increased as
investors show concern about the direction of the economy and
interest rates. The portfolio's focus on quality stocks and strict
valuation disciplines should help to protect shareholders from
this increased volatility. Recent emphasis has been on
high-quality, well-run companies that, for various reasons, have
not participated fully in the record bull market of the past
several years. Stocks that were added during the period include
Sun Company, Inc., a large U.S. refinery in the midst of a company
restructuring as well as an improving industry outlook; Lexmark
International Group, a manufacturer of PC printers that has been
gaining market share at the expense of Japanese competitors; and
Viacom, Inc., a dominant player in the video entertainment
industry with unprecedented low valuations.
With stock prices near all-time highs and company fundamentals
showing signs of uncertainty, the portfolio continues to be
underweight in the technology sector. Conversely, Federated has
increased holdings in the energy and retailing sectors, where
valuations are extremely attractive and global industrialization
will continue to expand demand.
Past performance is no guarantee of future results.
---------------------
143
<PAGE> 145
DAVIS SELECTED ADVISERS, L.P.
Venture Value Portfolio
<TABLE>
<S> <C> <C>
Venture Value Portfolio S&P 500 Index(1)
28-Oct 10000 10000
28-Feb 10684 10817
31-May 11678 11923
31-Aug 12952 12636
30-Nov 13514 13698
28-Feb 14113 14571
31-May 14623 15313
31-Aug 14572 15002
30-Nov 17221 17514
28-Feb 18148 18383
31-May 19369 19817
31-Aug 21344 21102
30-Nov 22322 22511
</TABLE>
VENTURE VALUE PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/97
- -------------------------------------------------
1-year 29.62%
Since Inception (10/28/94) 29.64%
- -------------------------------------------------
(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.
The Venture Value Portfolio has performed well this year,
delivering a total return of 29.62% for the 12-month period ended
November 30, 1997. This compares favorably to the 28.59% return of
the S&P 500 Index.
With a bull market that has already lasted nearly eight years
without major corrections, it is important for investors to
maintain realistic expectations. In Davis' point of view, the way
to obtain a bargain at this stage in a bull market is to take
advantage of volatility on the downside. By understanding company
fundamentals through careful, in-depth research, the portfolio
managers at Davis can move quickly and act with conviction when
there is an inevitable rotation out of one industry group to
another.
In terms of sector concentration, the Venture Value Portfolio
remains focused on financial services, technology, and energy,
with stocks from these sectors comprising 21.57% of the
portfolio's total holdings. Travelers, American Express, and
General Re are among the top holdings in the financial services
sector. IBM, the portfolio's largest holding, and Intel are two
technology companies that are expected to generate solid returns
over the long term. Schlumberger and Halliburton are two
energy-related stocks that should also offer investors long-term
growth opportunity.
Past performance is no guarantee of future results.
- ---------------------
144
<PAGE> 146
ALLIANCE CAPITAL MANAGEMENT L.P.
Alliance Growth Portfolio
<TABLE>
<CAPTION>
Measurement Period Alliance Growth Russell 1000 Growth
(Fiscal Year Covered) Portfolio Index(1)
<S> <C> <C>
9-Feb 10000 10000
9870 9830
31-May 10160 9956
10640 10085
30-Nov 10920 10220
11160 10443
31-May 10726 10137
11276 10742
30-Nov 10818 10497
11540 11358
31-May 13130 12363
15068 13389
30-Nov 16109 14561
16841 15410
31-May 17742 16386
16696 15846
30-Nov 20628 18388
21288 19161
31-May 23429 20723
25672 22085
30-Nov 26362 23262
</TABLE>
ALLIANCE GROWTH PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/97
- -----------------------------------------------------
1-year 27.80%
Since Inception (2/9/93) 22.34%
- -----------------------------------------------------
(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.
The Alliance Growth Portfolio achieved returns of 27.80% for the
12-month period ended November 30, 1997, outperforming the Russell
1000 Growth Index at 26.52%.
Performance over the 12-month period was driven both by
overweighted positions in the technology, financial services, and
health care (primarily drugs and pharmaceuticals) sectors and by
very strong stock selection. Technology stocks that made positive
contributions included Dell, Compaq, and Microsoft. MBNA, Merrill
Lynch, Norwest Bank and Morgan Dean Witter were some of the
notable winners in the financial services sector. In health care,
both Schering Plough and Pfizer appreciated over 80 percent during
the 12-month period. Several retail stocks performed well
including Home Depot, Dayton Hudson, and Kohl Department Stores.
Other stocks that contributed positively to performance included
AirTouch, United Airlines, and MCI Communications. Stocks that had
a negative performance impact included First Data Card, Sears,
Oxford Healthcare and Ascend Communications.
Past performance is no guarantee of future results.
---------------------
145
<PAGE> 147
PHOENIX INVESTMENT COUNSEL, INC.
Growth/Phoenix Investment Counsel Portfolio
<TABLE>
<CAPTION>
Measurement Period Growth/Phoenix Inc.
(Fiscal Year Covered) Cnsl. Portfolio S&P 500 Index(1)
<S> <C> <C>
9-Feb 10000 10000
9970 9915
31-May 10420 10144
10550 10517
30-Nov 10780 10551
11210 10743
31-May 10437 10576
10477 11092
30-Nov 10065 10663
10537 11533
31-May 11433 12713
12594 13473
30-Nov 13378 14606
13846 15537
31-May 14496 16327
14177 15995
30-Nov 15839 18675
15850 19601
31-May 16944 21130
17916 22500
30-Nov 18973 24002
</TABLE>
GROWTH/PHOENIX INVESTMENT COUNSEL
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/97
- -------------------------------------------------
1-Year 19.78%
Since Inception (7/1/93) 14.25%
- -------------------------------------------------
(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.
The Growth/Phoenix Investment Counsel Portfolio provided strong
returns over the last 12 months, but lagged its benchmark. For the
fiscal year ended November 30, 1997, the portfolio earned 19.78%,
versus a return of 28.59% for the S&P 500 Index. Solid stock
selection in the health care, energy and consumer sectors aided
performance. Individual stocks which produced impressive gains for
the portfolio included Pfizer, Guidant, Liberty Media,
Halliburton, and Travelers Corp. Areas of underperformance
included holdings in the finance and technology sectors.
Looking ahead, Phoenix believes that the long-term outlook for the
stock market remains positive. Although valuation levels have
obviously risen for most of the market, the economy continues to
grow at a moderate yet sustainable pace, inflation remains benign,
and projections for corporate earnings are still favorable. The
portfolio's stock selection continues to focus on firms that
possess above-average earnings potential, superior management, and
strong industry fundamentals.
Past performance is no guarantee of future results.
- ---------------------
146
<PAGE> 148
PUTNAM INVESTMENTS
Putnam Growth Portfolio
<TABLE>
<CAPTION>
Measurement Period Putnam Growth Russell 1000
(Fiscal Year Covered) Portfolio Growth Index(1) S&P 500 Index(2)
<S> <C> <C> <C>
9-Feb 10000 10000 10000
9910 9830 9915
31-May 9810 9956 10144
10190 10085 10517
30-Nov 10040 10220 10551
10480 10443 10743
31-May 10039 10137 10576
10499 10742 11092
30-Nov 10059 10497 10663
10399 11358 11533
31-May 11227 12363 12713
12721 13389 13473
30-Nov 13143 14561 14606
13323 15410 15537
31-May 14236 16388 16327
13614 15848 15995
30-Nov 15761 18388 18675
16143 19161 19601
31-May 16926 20723 21130
18358 22085 22500
30-Nov 19862 23262 24002
</TABLE>
PUTNAM GROWTH PORTFOLIO
AVERAGE ANNUAL TOTAL RETURN AS OF 11/30/97
- -------------------------------------------------------
1-year 26.01%
Since Inception (2/9/93) 15.34%
- -------------------------------------------------------
(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.
(2) 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 large companies more heavily than those in smaller companies.
For the 12 months ended November 30, 1997, the Putnam Growth
Portfolio returned 26.01%, while the Russell 1000 Growth Index
returned 26.52% and the S&P 500 Index returned 28.59%. The
portfolio was previously named the Provident Growth Portfolio and
was managed by Provident Investment Counsel. On April 16, 1997,
Putnam Investments assumed responsibility for managing the
portfolio in conjunction with a name change to the Putnam Growth
Portfolio. After this reporting period, the portfolio will no
longer be measured against the Russell 1000 Growth Index. The new
manager believes that a more accurate reflection of the holdings
in the portfolio would be the
S&P 500 Index.
The portfolio's performance was aided by strategic positioning.
Putnam expanded the capitalization range of portfolio holdings
(within the defined limits of its discipline), focusing on
domestic firms. The portfolio's emphasis on the finance,
technology, and health care sectors contributed to the
double-digit performance, as did the underweighting of consumer
staples and basic industries.
With the ongoing uncertainties regarding Southeast Asia, the
portfolio continues to focus on stocks whose earnings are largely
domestic. Putnam continues to overweight the technology, finance,
and health care sectors. The manager also finds consumer
cyclicals, particularly value-oriented retailers, to be
attractive; however, it is cautious about the 1998 earnings
outlook. The consensus expectations of only a few weeks ago have
declined sharply, given a reassessment of the reverberations from
the Far East situation. The probability of event risk has risen,
and the aging of the strong stock market could result in a
correction. Offsetting these concerns are the continued low levels
of interest rates and inflation, the attractiveness of U.S.
equities as a safe haven, and the continued shrinkage of stock
availability (due to industry consolidations) while demand remains
high. In this environment, Putnam is maintaining its disciplined
approach to stock selection, an attribute which should help
produce competitive, superior returns over time.
Past performance is no guarantee of future results.
---------------------
147
<PAGE> 149
ALLIANCE CAPITAL MANAGEMENT L.P.
Global Equities Portfolio
<TABLE>
<CAPTION>
Measurement Period Global Equities
(Fiscal Year Covered) Portfolio MCSI World Index*
<S> <C> <C>
9-Feb 10000 10000
9970 10110
31-May 10670 11446
11260 12102
30-Nov 10990 11497
12090 12694
31-May 11976 12561
12409 13156
30-Nov 11755 12610
11614 12732
31-May 12649 13935
13054 14310
30-Nov 13574 15008
14374 15829
31-May 15078 16492
14648 16182
30-Nov 16046 17891
16325 18031
31-May 17599 19390
18191 19879
30-Nov 18180 20218
</TABLE>
GLOBAL EQUITIES PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/97
- -------------------------------------------------
1-Year 13.30%
Since Inception (2/9/93) 13.24%
- -------------------------------------------------
(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.
The Global Equities Portfolio achieved a return of 13.30% for the
12 months ended November 30, 1997, outperforming the Morgan
Stanley Capital International World Index, its benchmark, at
13.01%.
For the period, the generally underweight position in Japan and
overweight position in Europe assisted performance. Exposure to
Southeast Asia during the period was primarily under benchmark
levels. The negative impact of slightly underweighting U.S.
equities relative to the benchmark was more than offset by strong
stock selection. Assisting performance for the 12 months were
positions in financials (North America and Europe) and technology
(U.S. and Japan) issues. However, in the fourth quarter of the
fiscal year, the latter group detracted from returns as concerns
about growth and valuations resulted in a correction in share
prices.
Past performance is no guarantee of future results.
- ---------------------
148
<PAGE> 150
PUTNAM INVESTMENTS
International Growth and Income Portfolio
<TABLE>
<CAPTION>
Measurement Period International Growth
(Fiscal Year Covered) and Income Portfolio MSCI EAFE Index(1)
<S> <C> <C>
2-Jun 10000 10000
30-Jun 10360 10554
31-Jul 10900 10727
31-Aug 10160 9928
30-Sep 10950 10486
31-Oct 10280 9683
30-Nov 10410 9586
</TABLE>
INTERNATIONAL GROWTH AND INCOME PORTFOLIO
TOTAL RETURNS AS OF 11/30/97
- -------------------------------------------------
Since Inception (7/1/97) 4.10%
- -------------------------------------------------
*Not annualized.
(1) The Morgan Stanley Capital International Europe, Australia, and Far East
(EAFE) Index represents the foreign stocks of 19 countries in Europe,
Australia and the Far East.
With an inception date of June 2, 1997, the International Growth
and Income Portfolio increased 4.10% from inception through
November 30, 1997, outperforming the Morgan Stanley Capital
International Europe, Australia and Far East (EAFE) Index, which
fell 4.14% during the period in U.S. dollar terms.
International stocks enjoyed strong returns during much of the
six-month period since the portfolio's inception, despite sharp
declines, especially late in the year in Southeast Asia.
Fortunately, the portfolio did not hold any stocks in the five
Asian countries that suffered the heaviest losses: Thailand,
Malaysia, the Philippines, Indonesia, and South Korea. The
Japanese market also fell sharply; however, the portfolio's market
weight in Japan was far below the EAFE index.
The portfolio outperformed the EAFE index primarily because of
stock selection. Putnam's bottom-up investment strategy focuses on
identifying large-cap stocks of companies outside the U.S. that
are experiencing positive fundamental changes and also appear
undervalued. Akzo-Nobel, a Dutch chemical/pharmaceutical that is
benefiting from recent cost reductions in its fiber business and
the positive reception of new products from its pharmaceuticals
company, was among the strongest performers during the six-month
period, up 38%. The portfolio also was boosted by Scottish Power,
a U.K. utility that implemented internal cost reductions and
consolidations during the period while experiencing a
less-than-expected windfall tax charge. The stock gained 32% in
the period. National Westminster Bank also enjoyed a sizable rise
in value, increasing 23%. Under the guidance of a new chief
financial officer, the bank initiated a major cost reduction
program this year featuring significant branch consolidation and
workforce reductions. Other strong performers included ENI, an
Italian oil company, up 17%, and Nestle, which advanced 15%.
Past performance is no guarantee of future results.
---------------------
149
<PAGE> 151
MORGAN STANLEY ASSET MANAGEMENT INC.
International Diversified Equities Portfolio
<TABLE>
<CAPTION>
International
Measurement Period Diversified Equities
(Fiscal Year Covered) Portfolio MSCI EAFE Index(1)
<S> <C> <C>
28-Oct 10000 10000
28-Feb 9073 9655
31-May 9759 10525
31-Aug 10021 10573
30-Nov 10233 10790
28-Feb 10925 11316
31-May 11411 11682
31-Aug 10905 11437
30-Nov 11752 12091
28-Feb 11463 12560
31-May 12342 13506
31-Aug 12359 13408
30-Nov 12165 12846
</TABLE>
INTERNATIONAL DIVERSIFIED EQUITIES PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/97
- -------------------------------------------------
1-Year 3.52%
Since Inception (10/28/94) 6.54%
- -------------------------------------------------
(1) The Morgan Stanley Capital International Europe, Australia, and Far East
(EAFE) Index represents the foreign stocks of 19 countries in Europe,
Australia and the Far East.
For the year ended November 30, 1997, the International
Diversified Equities Portfolio generated a return of 3.52%, as
compared to the 7.07% return of the Morgan Stanley Capital
International Europe, Australia and Far East (EAFE) Index, its
benchmark. Overall portfolio returns were affected by a large
dichotomy in performance among the major economies in the world.
While the economies in the U.S. and continental Europe were either
strong or improving, the Asian markets fell dramatically. The
Japanese economy collapsed in mid-1997 after a sales tax increase
dented consumer demand. This was compounded by the turmoil in
Southeast Asia, as one Asian currency after another dropped in
value.
In response, Morgan Stanley Asset Management (MSAM) increased the
portfolio's allocation to Europe mainly by moving to an overweight
position in the U.K., now the portfolio's largest holding. With
robust economic growth and strong exports, U.K. equities are
attractively valued, particularly relative to bonds. Net trade
should continue to be a driver of growth as the recovery in
Continental Europe strengthens and demand for U.K. goods
increases.
The portfolio remains underweight in Asia, as many Asian
governments continue to be reluctant to implement the tough
economic and regulatory policies necessary to restore investor
confidence and market stability. Investors appear concerned about
reinvesting in the region until there is more certainty about
government allocation of resources and a better sense of the
credit quality implications of the currency and stock market
crashes. MSAM has also decreased the allocation to Japan, a
country hit hard by the overall slowdown in Asia. Approximately
40% of Japanese exports are distributed in Asia, and the
competitive devaluation of the Asian currencies have made Japanese
goods less competitive.
Past performance is no guarantee of future results.
- ---------------------
150
<PAGE> 152
DAVIS SELECTED ADVISERS, L.P.
Real Estate Portfolio
<TABLE>
<CAPTION>
Measurement Period Morgan Stanley REIT
(Fiscal Year Covered) Real Estate Portfolio Index(1)
<S> <C> <C>
2-Jun 10000 10000
30-Jun 10470 10529
31-Jul 10750 10814
31-Aug 10710 10741
30-Sep 11680 11756
31-Oct 11380 11438
30-Nov 11500 11608
</TABLE>
REAL ESTATE PORTFOLIO
TOTAL RETURN AS OF 11/30/97*
- ------------------------------------------------------
Since Inception (6/2/97) 15.30%
- ------------------------------------------------------
* Not annualized.
(1) The Morgan Stanley Real Estate Investment Trust (REIT) Index is a
capitalization-weighted index with dividends reinvested of mostly actively
traded real estate investment trusts and is designed to be a measure of
real estate equity performance. The index was developed with a base value
of 200 as of December 31, 1994.
The Real Estate Portfolio was launched on June 2, 1997. The
portfolio performed well during the period, delivering a total
return of 15.30% from inception on June 2, 1997 through November
30, 1997. Its benchmark, the Morgan Stanley Real Estate Investment
Trust Index, achieved a return of 16.08% for the same period.
The portfolio continues to emphasize three real estate sectors,
which make up over 50% of its assets: full-service hotels,
apartment buildings in California, and the office arena. Key
holdings include Patriot American Hospitality, Crescent Real
Estate Equities, Cali Realty and Vornado Realty Trust. The
portfolio remains well diversified, with its largest holding
Crescent Real Estate at 3.28% of total assets.
Unlike stocks and bonds, real estate is the one asset class that
Davis believes is still undervalued. Even after the strong
recovery in real estate this year, most types of properties remain
closer to their bottom prices than their historic highs.
Currently, only about $150 billion worth of real estate is traded
publicly, often in the form of REITs. Over the next four or five
years, that amount should increase substantially, as more and more
investors discover the enormous long-term growth potential that is
undervalued in today's marketplace.
Past performance is no guarantee of future results.
---------------------
151
<PAGE> 153
SUNAMERICA ASSET MANAGEMENT CORP.
Aggressive Growth Portfolio
<TABLE>
<CAPTION>
Measurement Period Aggressive Growth
(Fiscal Year Covered) Portfolio Russell 2000 Index(1)
<S> <C> <C>
3-Jun 10000 10000
31-Aug 9270 9260
30-Nov 10360 9864
28-Feb 10120 10054
31-May 10099 10675
31-Aug 10741 11917
30-Nov 11771 12149
</TABLE>
AGGRESSIVE GROWTH PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/97
- --------------------------------------------------------
1-year 13.62%
Since Inception (6/3/96) 11.52%
- --------------------------------------------------------
(1) The Rusell 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 ????????
as of December 31, 1986.
For the year ended November 30, 1997, the Aggressive Growth
Portfolio returned 13.62%, following a very challenging month of
October for growth stocks. The portfolio's performance trailed the
23.16% return of its benchmark Russell 2000 Index. Factors that
had an impact on the negative performance included the October
sell-off in growth stocks and the currency crisis in Asia.
As of September 30, 1997, the portfolio had returned over 20% for
the year. The portfolio had been positioned for a continuation of
modest economic growth and flat to lower interest rates, with over
30% of assets in the technology sector and the rest diversified
among growth issues in numerous sectors. However, the growth stock
universe was severely impacted in the month of October by the dual
concerns of September earnings reports and the new Asian currency
crisis, which affected all growth issues, but most particularly
technology stocks.
Perceiving that growth would moderate and that the value of
defensive sectors would rise, the manager repositioned the
portfolio to increase its exposure to consumer staples (4.7%),
consumer discretionary (6.3%), and financials (nearly 20%), while
decreasing its growth technology position (18.5%). The portfolio
remains overweighted in energy (16%), consisting of small oil and
gas service stocks, as the manager believes that increased
drilling activity will continue worldwide.
Past performance is no guarantee of future results.
- ---------------------
152
<PAGE> 154
PUTNAM INVESTMENTS
Emerging Markets Portfolio
<TABLE>
<CAPTION>
Measurement Period Emerging Markets MSCI Emerging Markets
(Fiscal Year Covered) Portfolio Free Index(1)
<S> <C> <C>
2-Jun 10000 10000
30-Jun 10410 10586
31-Jul 10620 10693
31-Aug 9350 9333
30-Sep 9890 9591
31-Oct 8280 8017
30-Nov 8030 7725
</TABLE>
EMERGING MARKETS PORTFOLIO
Total Return as of 11/30/97*
- ---------------------------------------------------------------
Since Inception (6/2/97) -19.70%
- ---------------------------------------------------------------
*Not annualized.
(1) The Morgan Stanley Capital International (MSCI) Emerging Markets--Free Index
is a capitalization-weighted equity index composed of companies that are
representative of the market structure of the following countries:
Argentina, Brazil, Chile, China, Columbia, Czech Republic, Greece, Hungary,
India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Pakistan, Peru,
Philippines, Poland, Portugal, South Africa, Sri Lanka, Taiwan, Thailand,
Turkey, and Venezuela.
The Emerging Markets Portfolio became available in the Trust on
June 2, 1997. From inception on June 2, 1997 through November 30,
1997, the portfolio returned -19.70%, versus the Morgan Stanley
Capital International Emerging Markets Free Index, which posted a
return of -22.75%. The major factor behind the negative
performance of both the portfolio and the emerging markets sector
was the financial crisis in Asia.
During the period, Putnam continued to focus on longer-term
strategic investing, seeking potential capital appreciation in
emerging markets through both country and stock selection. In
terms of regional concentration, the portfolio emphasized Latin
America at the expense of the troubled Asian markets. Within Latin
America, the focus shifted from Brazil in favor of Argentina and
Mexico, where growth opportunities and economic fundamentals were
more attractive. Elsewhere, the relatively small allocation to
Russia contributed positively to performance, despite the
volatility in that market. Stock selection also supported the
portfolio. While any Asian exposure, such as technology stocks in
Taiwan, cost the portfolio potential returns, the portfolio was
successful in avoiding the Asian banking sector, where share
prices fell sharply. In contrast, the portfolio's consumer
holdings in Mexico performed well.
Putnam expects a significant level of volatility in the emerging
markets through the first half of 1998 as Asian currencies find an
equilibrium level. Interest rates will likely remain volatile in
the region, and markets are currently very illiquid. This means
there could be sharp upward moves as well. Throughout this period
of uncertainty, Putnam will continue to populate the portfolio
with companies that have exceptionally strong balance sheets,
proven export competitiveness, and management that is both tried
and tested. In addition, cash has been maintained at the 5% - 6%
level to help provide protection against potential volatility in
the global capital markets.
Past performance is no guarantee of future results.
---------------------
153
<PAGE> 155
(LOGO)
1 SunAmerica Center
Los Angeles, California 90067-6022
THIS REPORT IS FOR THE GENERAL INFORMATION OF CONTRACT OWNERS OF THE POLARIS AND
POLARISII VARIABLE ANNUITIES.
IT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE PURCHASERS UNLESS
ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
R-1411-AR (R 1/98)
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