<PAGE> 1
SUNAMERICA SERIES TRUST
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ANNUAL REPORT
NOVEMBER 30, 1998
LOGO LOGO
THIS REPORT IS FOR THE GENERAL INFORMATION OF CONTRACT OWNERS OF THE
POLARIS, POLARIS(II), POLARIS GROUP AND ANCHOR ADVISOR VARIABLE ANNUITIES.
<PAGE> 2
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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 variable
annuities from Anchor National Life Insurance Company and First
SunAmerica Life Insurance Company. Several of SunAmerica's annuity
products have the SunAmerica Series Trust in common as an
underlying investment; however, not all of the Series' portfolios
are available in all of the products.
The following is a combined perspective on the U.S. and global
economies for the one-year reporting period ended November 30,
1998, from eight of the nine investment managers who manage the
portfolios in your variable annuity (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 1999
outlook on the U.S. and global markets from these investment
managers.
THE YEAR IN REVIEW
U.S. Economy
Davis Selected Advisers, L.P. states it best when they say 1998
was a year when no one consistently predicted market trends.
Strong consumer and business investment spending powered the U.S.
economy. Gross domestic product (GDP) growth reached an estimated
2.2%. SunAmerica Asset Management Corp. notes that the recent
easing of monetary policy undertaken by the Federal Reserve Board
further demonstrated the Fed's effort to protect the U.S. economy
from the impact of international weakness, as well as domestic
financial disturbances.
While trade, manufacturing, and commodity sectors remain under
distress, robust consumer spending continued and the year ended on
a high note, despite poor fourth-quarter earnings and the
political instability in the White House. Federated Investors
believes there are several reasons why U.S. stocks embarked on a
new bull phase just weeks after the onset of a fierce bear market.
For one, the Fed's aggressive action to reliquify the global
financial system supported equity prices. Also, the torrent of
volatility in the fourth quarter was largely limited to the
financial sector. Finally, the U.S. economy remains fundamentally
in sound condition, with no threat of inflation or low
unemployment, and with productivity gains returning to levels
common in the 1960s.
U.S. Stock Market
The year began with strong performance in the stock market,
posting record numbers in July. Then on August 31, 1998, the Dow
Jones Industrial Average fell 512 points -- its second-worst point
loss of all time. One week later, the Dow posted its largest
one-day gain of 380 points. Putnam Investments believes that,
driven by continued modest inflation and a spate of mega-mergers,
the U.S. economy energized the domestic equity market to dramatic
heights. Federated concurs, maintaining that the Fed's timely
action allowed the U.S. to dodge the recessionary bullet.
Large-cap stocks tended to be the investment of choice among
U.S. investors throughout the reporting period. Goldman Sachs
Asset Management observes that this emphasis on large-cap growth
companies resulted in an increase in valuations relative to other
asset classes. This sets the stage for a broad range of attractive
opportunities in the mid- and
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small-cap sectors, as well as in large-cap value. In terms of
individual sector performance, healthcare, technology, cable, and
telecommunications proved to be the dominant leaders of 1998.
Davis also notes that, as a result of the recent crisis in the
financial sector, many financial companies are selling well below
market multiples. It believes this sector will stage a full
recovery and continue prospering due to favorable demographics,
low inflation, benign interest rates, and increased savings.
Phoenix Investment Counsel, Inc. cites basic materials and capital
goods stocks as currently having limited appeal given the cyclical
nature of their earnings.
U.S. Bond Market
The U.S. bond market benefited from both an international and
domestic flight to quality throughout the year. In the 90-day
period representing the third quarter, the Federal Reserve Board
went from a tightening bias to an easing, resulting in yields on
the long bond dropping from 5.50 to 4.60%. In the current market
environment, Federated Investors anticipates that inflation will
remain dormant, allowing the bull market in bonds to continue.
Interest rate-spread products are particularly attractive given
the relatively late date in the economic cycle. Within the
high-yield bond market, quality names performed best, as they tend
to do during times of economic stress.
Global Market
According to Morgan Stanley Asset Management, disparate economic
growth between the U.S., Europe, Japan, and Asia (sans Japan)
continued throughout the year. Global equity markets experienced
sharp volatility during the 12-month reporting period, moving from
record declines to record gains in short order. The volatility was
due in part to the destabilization of world markets precipitated
by economic turmoil in Asia, Latin America, and Eastern Europe.
While Continental European economies improved as a result of
rising consumer and business confidence, Asia's financial troubles
continued to pervade in 1998. Putnam Investments notes that Japan,
Hong Kong, South Korea, Singapore, and Malaysia all experienced
declines. Although the Japanese economy showed signs of
strengthening in early 1998, its condition worsened as the year
unfolded, and Japan and many of its Asian neighbors slipped into
recession. In Asia (sans Japan), the economies suffered severe
retrenchment with contractions in real economic growth due to high
interest rates and a downturn in demand for the region's exports.
Global markets were further ravaged by the collapse of the
Russian economy and the ensuing damage to large hedge funds and
their lenders. Although these events wiped away strong gains in
many global markets, including the U.S. and Europe, Putnam
Investments observes that they "were especially troublesome to
emerging markets, which endured another difficult investment
environment."
OUTLOOK FOR 1999
U.S. Stock and Bond Markets
Recently, capital market turmoil has subsided and the U.S.
economy continues to grow at an above-trend pace. Goldman Sachs
predicts the economy will slow significantly in 1999 due to two
structural imbalances stemming from the sustained business
expansion of
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1998. First, equity prices are sharply higher, "which will push
the personal savings rate into negative territory," states the
money manager. Second, because of "falling capacity utilization
rates and pressure on profit margins, capital spending growth is
likely to slow sharply in 1999." Overall, Goldman Sachs contends,
the slowdown may lead to still lower interest rates.
Global Market
Looking forward, Morgan Stanley expects global central banks to
initiate further interest rate easing in an effort to maintain
liquidity, stating that "falling energy and other commodity prices
further underpin the prospect for economic growth." In Japan, the
economy continues to be mired by the absence of consumer spending
and business investment, as well as the unstable financial system.
Morgan Stanley anticipates that Asian economies will bottom out by
the second half of 1999. Putnam Investments notes that Europe's
long-term fundamentals remain solid and offer attractive
investment opportunities. It remains cautious towards Pacific
Basin investments and leery of emerging market
investments -- although it believes that prospects for a
turnaround are increasing.
Alliance Capital Management, L.P. maintains that the global
economy still faces some important threats: Japan's shrinking
economy, continued deterioration in Latin America, and no upturn
in sight for developing Asian nations. Although it believes the
U.S. and Europe still face the possibility of an economic
slowdown, "it seems unlikely that the emerging markets crisis will
escalate into a major recession in the developed world."
IN CONCLUSION
By all accounts, 1998 proved to be both challenging and, at
times, invigorating for the securities markets. Most of our money
managers agree that the challenges were predominantly on the
international front, while the U.S. staged the most profitable
performance with declines confined to specific individual sectors
and holdings. All of the managers agree that, while the U.S.
equity market will likely remain somewhat volatile due to the
unsettled nature of the global economy, the U.S. will continue to
benefit from modest inflation and low interest rates. Putnam
Investments concludes "this unique environment may serve as the
foundation for domestic stability, helping to maintain investor
confidence and nurture economic growth." Alliance Capital concurs,
stating that the most positive factor in the global economy is the
U.S., which continues to experience impressive growth. "With luck,
the U.S. and Europe will help to pull the rest of the world
through the current slowdown."
As a variable annuity investor, you have at your disposal a
multitude of investment choices and money managers to help you
reach your long-term investment goals. The professional money
managers in our products continue to work hard on your behalf to
research the best investment opportunities available throughout
the world.
As we enter 1999, we encourage you to contact your investment
representative whenever you have questions or concerns about your
investments. In the meantime, we
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thank you for your continued confidence in our management of your
investment. We look forward to reporting to you again at mid-year
1999.
Sincerely,
/s/ ELI BROAD
Eli Broad
Chairman and Chief Executive Officer
Anchor National Life Insurance Company
First SunAmerica Life Insurance Company
January 14, 1999
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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, 1998
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 98.4% AMOUNT VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
CERTIFICATES OF DEPOSIT -- 5.8%
Kansallis Osake Pankki New York 9.75% due 12/15/98.......... $3,000,000 $ 3,004,074
Societe Generale 5.76% due 4/16/99.......................... 5,000,000 5,008,001
Toronto Dominion 5.15% due 12/13/98......................... 5,000,000 5,012,394
-------------
TOTAL CERTIFICATES OF DEPOSIT (cost $13,001,153)............ 13,024,469
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COMMERCIAL PAPER -- 52.5%
Banco Itau SA 4.95% due 3/16/99............................. 5,000,000 4,927,083
Banco Itau SA 5.20% due 3/16/99............................. 5,000,000 4,927,083
Banco Mercantil 5.40% due 1/29/99........................... 5,000,000 4,955,750
Bancomer SA 5.05% due 4/09/99............................... 5,000,000 4,895,150
Barton Capital Corp. 5.28% due 2/18/99...................... 3,000,000 2,960,400
Bavaria Global Corp. 5.08% due 3/22/99...................... 6,000,000 5,906,575
British Gas Capital, Inc. 5.00% due 4/12/99................. 5,000,000 4,908,700
Certain Funding Corp. 5.10% due 1/15/99..................... 5,000,000 4,968,125
Chase Manhattan Corp. 5.02% due 3/30/99..................... 5,000,000 4,916,866
Dairy Investments Ltd. 5.00% due 4/05/99.................... 5,000,000 4,913,542
Edison Asset Securitization 5.00% due 4/09/99............... 4,905,000 4,817,119
Edison Asset Securitization 5.02% due 3/15/99............... 5,000,000 4,927,055
Four Winds Funding Corp. 5.07% due 3/19/99.................. 5,000,000 4,922,300
Goldman Sachs Group L.P. 5.10% due 3/19/99.................. 8,000,000 7,880,000
Grand Funding Corp. 5.48% due 12/11/98...................... 4,094,000 4,087,768
Market Street Funding Corp. 5.45% due 12/08/98.............. 6,355,000 6,348,265
Merrill Lynch & Co., Inc. 5.42% due 12/01/98................ 3,500,000 3,500,000
Monsanto Co. 5.39% due 1/28/99.............................. 5,000,000 4,956,581
Montauk Funding Corp. 5.50% due 2/16/99..................... 5,000,000 4,945,550
Sigma Finance Corp. 5.03% due 4/07/99....................... 5,000,000 4,912,688
Sigma Finance Corp. 5.44% due 1/11/99....................... 5,000,000 4,969,022
Transamerica Finance Corp. 4.90% due 3/26/99................ 5,000,000 4,919,659
UBS Finance, Inc. 5.47% due 1/11/99......................... 4,000,000 3,975,081
Westways Funding III Ltd. 5.43% due 1/08/99................. 4,000,000 3,977,073
-------------
TOTAL COMMERCIAL PAPER (cost $117,429,335).................. 117,417,435
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CORPORATE SHORT-TERM NOTES -- 29.8%
Abbey National Treasury Services PLC 5.54% due 1/20/99...... 4,000,000 3,999,747
Allied Signal, Inc. 9.12% due 3/08/99....................... 1,000,000 986,447
Avco Financial Services, Inc. 5.18% due 1/14/99............. 1,100,000 1,098,517
Bankers Trust Co. 5.38% due 2/19/99(1)...................... 3,000,000 2,999,550
Bankers Trust Co. 5.57% due 5/14/99(1)...................... 5,000,000 4,987,500
Banque National De Paris New York 5.71% due 3/30/99......... 2,000,000 2,001,658
Barnett Banks, Inc. 5.56% due 12/28/98(1)................... 3,000,000 3,000,443
Chrysler Financial Corp. 5.85% due 12/16/98................. 2,000,000 2,000,108
Citicorp 5.48% due 12/17/98................................. 5,000,000 5,000,000
FCC National Bank 5.55% due 12/01/98........................ 2,000,000 1,998,620
Goldman Sachs Group L.P. 5.35% due 1/15/99.................. 2,000,000 2,000,000
IBM Credit Corp. 5.61% due 7/30/99.......................... 5,000,000 5,013,666
KeyBank N A 5.09% due 12/01/98.............................. 5,000,000 5,001,000
Liberty Lighthouse United States Capital Co. 5.26% due
12/15/98.................................................. 5,000,000 4,999,565
Liberty Lighthouse United States Capital Co. 5.48% due
12/17/98.................................................. 2,000,000 1,999,973
Merrill Lynch & Co., Inc. 4.99% due 12/01/98................ 5,000,000 5,000,000
</TABLE>
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<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES (CONTINUED) AMOUNT VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES (continued)
Merrill Lynch & Co., Inc. 5.31% due 11/22/99................ $3,000,000 $ 2,994,690
Portland General Electric Co. 6.63% due 8/31/99............. 3,000,000 3,030,000
Sanwa Business Credit Corp. 5.19% due 2/20/99(1)............ 5,000,000 5,008,728
Virginia Electric & Power Co. 9.30% due 6/09/99............. 3,500,000 3,570,000
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TOTAL CORPORATE SHORT-TERM NOTES (cost $66,674,086)......... 66,690,212
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FEDERAL AGENCY OBLIGATIONS -- 2.9%
Federal Agricultural Mortgage Corp. 7.25% due 1/15/99....... 5,000,000 5,008,763
Federal Home Loan Banks 4.11% due 12/07/98.................. 1,000,000 991,342
Federal National Mortgage Association 5.06% due 12/24/98.... 500,000 495,400
-------------
TOTAL FEDERAL AGENCY OBLIGATIONS (cost $6,501,372).......... 6,495,505
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MUNICIPAL BONDS -- 7.4%
Illinois Student Assistance Corp. 4.98% due 12/02/98(1)..... 4,000,000 4,000,000
Illinois Student Assistance Corp. 4.98% due 12/02/98(1)..... 3,000,000 3,000,000
New Hampshire State Industrial Development Authority,
Revenue 5.20% due 2/19/99................................. 5,000,000 5,000,000
Texas St. General Obligation 4.96% due 12/02/98(1).......... 4,445,000 4,445,000
-------------
TOTAL MUNICIPAL BONDS (cost $16,445,000).................... 16,445,000
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TOTAL SHORT-TERM SECURITIES (cost $220,050,946)............. 220,072,621
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TOTAL INVESTMENTS --
(cost $220,050,946) 98.4% 220,072,621
Other assets less liabilities -- 1.6 3,567,470
------ -------------
NET ASSETS -- 100.0% $ 223,640,091
====== =============
</TABLE>
-----------------------------
(1) Variable rate security; date shown reflects next reset date;
rate as of November 30, 1998
See Notes to Financial Statements
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SUNAMERICA SERIES TRUST
GLOBAL BOND PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(DENOMINATED IN
FOREIGN BONDS & NOTES -- 59.7% LOCAL CURRENCY) VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C>
CANADIAN DOLLAR -- 2.1%
Government of Canada 6.00% 2008............................. 3,500,000 $ 2,464,119
-------------
DANISH KRONER -- 7.3%
Kingdom of Denmark 6.00% 2009............................... 100,000 17,514
Kingdom of Denmark 8.00% 2003............................... 33,000,000 5,932,222
Kingdom of Denmark 8.00% 2006............................... 13,000,000 2,477,640
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8,427,376
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FRENCH FRANC -- 1.9%
Government of France 5.50% 2007............................. 7,000,000 1,363,285
Government of France 8.50% 2023............................. 3,000,000 808,464
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2,171,749
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GERMAN MARK -- 5.8%
Baden-Wuerttemberg 5.38% 2010............................... 3,800,000 2,380,082
Halifax PLC 5.63% 2007...................................... 800,000 513,072
Kreditanstalt Fuer Wiederaufbau 5.00% 2009.................. 2,000,000 1,243,230
Republic of Germany 6.25% 2024.............................. 3,700,000 2,619,411
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6,755,795
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ITALIAN LIRA -- 7.5%
Republic of Italy 6.75% 2007................................ 4,000,000,000 2,807,084
Republic of Italy 8.50% 2004................................ 8,000,000,000 5,867,007
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8,674,091
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JAPANESE YEN -- 7.2%
Asian Development Bank 5.00% 2003........................... 221,000,000 2,109,890
Asian Development Bank 5.63% 2002........................... 320,000,000 3,010,966
Government of Japan zero coupon 2008........................ 110,000,000 866,697
International Bank of Reconstruction & Development 2.00%
2008...................................................... 70,000,000 610,890
Republic of Italy 5.13% 2003................................ 170,000,000 1,661,554
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8,259,997
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POUND STERLING -- 15.5%
Abbey National Treasury Services PLC 8.00% 2003............. 1,200,000 2,159,340
Bank Nederlandse Gemeenten NV 6.38% 2005.................... 700,000 1,224,307
United Kingdom Treasury 7.75% 2006.......................... 2,800,000 5,491,346
United Kingdom Treasury 9.00% 2012.......................... 2,100,000 4,930,781
United Kingdom Treasury 9.50% 2004.......................... 2,000,000 4,069,191
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17,874,965
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SPANISH PESETA -- 2.6%
Government of Spain 6.00% 2008.............................. 380,000,000 2,975,372
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SWEDISH KRONA -- 1.2%
Kingdom of Sweden 9.00% 2009................................ 8,000,000 1,356,982
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</TABLE>
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<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(DENOMINATED IN
FOREIGN BONDS & NOTES (CONTINUED) LOCAL CURRENCY) VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES DOLLAR -- 8.6%
Bayerische Landesbank Girozentrale 6.63% 2007............... $ 3,000,000 $ 3,231,720
Instituto de Credito Oficial 6.00% 2008..................... 900,000 939,375
International Bank of Reconstruction & Development 5.75%
2008...................................................... 900,000 920,137
KFW International Finance, Inc. 5.75% 2008.................. 900,000 924,750
Nederlandse Waterschapsbank NV 6.13% 2008................... 2,000,000 2,088,750
Ontario Hydro 6.10% 2008.................................... 1,800,000 1,853,352
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9,958,084
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TOTAL FOREIGN BONDS & NOTES (cost $65,130,185).............. 68,918,530
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DOMESTIC BONDS & NOTES -- 31.8%
---------------------------------------------------------------------------------------------
CORPORATE BONDS -- 6.4%
Ameritech Capital Fund 5.88% 2003........................... 2,200,000 2,255,660
Ford Motor Credit Co. 5.41% 2005(1)......................... 2,900,000 2,846,408
Ford Motor Credit Co. 6.13% 2003............................ 1,300,000 1,328,119
Prudential Insurance Co. 6.38% 2006......................... 1,000,000 1,020,500
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7,450,687
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U.S. GOVERNMENT -- 25.4%
United States Treasury Bonds 6.75% 2026..................... 3,000,000 3,615,480
United States Treasury Notes 5.63% 2008..................... 14,500,000 15,424,375
United States Treasury Notes 6.63% 2007..................... 1,400,000 1,573,026
United States Treasury Notes 7.00% 2006..................... 7,700,000 8,761,137
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29,374,018
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TOTAL DOMESTIC BONDS & NOTES (cost $36,343,204)............. 36,824,705
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TOTAL INVESTMENT SECURITIES (cost $101,473,389)............. 105,743,235
-------------
SHORT-TERM SECURITIES -- 5.5%
---------------------------------------------------------------------------------------------
TIME DEPOSIT -- 3.4%
Cayman Island Time Deposit with State Street Bank & Trust
Co.
5.10% due 12/01/98........................................ 3,903,000 3,903,000
U.S. GOVERNMENT -- 2.1%
United States Treasury Notes 5.63% 1999..................... 2,300,000 2,318,676
-------------
TOTAL SHORT-TERM SECURITIES (cost $6,222,434)............... 6,221,676
-------------
TOTAL INVESTMENTS --
(cost $107,695,823) 97.0% 111,964,911
Other assets less liabilities -- 3.0 3,463,304
------ -------------
NET ASSETS -- 100.0% $ 115,428,215
====== =============
---------------
(1) Variable rate security; rate as of November 30, 1998
</TABLE>
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8
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<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
-----------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*CHF 4,211,569 USD 3,053,433 02/17/99 $ 13,161
*JPY 994,292,187 USD 8,574,811 02/10/99 419,713
*GBP 7,455,126 USD 12,617,801 01/29/99 349,947
*GBP 991,000 DEM 2,744,376 01/29/99 42,294
*GBP 1,947,027 USD 3,237,380 01/29/99 33,431
*GBP 1,054,078 USD 1,754,280 01/29/99 19,733
*GBP 2,243,173 USD 3,694,550 01/29/99 3,276
*GBP 1,141,000 DEM 3,121,126 01/29/99 6,585
*DEM 4,555,738 USD 2,764,404 01/25/99 71,650
*DEM 2,436,550 USD 1,473,661 01/25/99 33,492
*DEM 2,636,163 USD 1,611,918 01/22/99 53,952
*SEK 6,265,500 DEM 1,332,206 01/22/99 32,992
*NLG 6,400,000 USD 3,508,003 01/21/99 151,781
*FRF 26,997,622 USD 4,939,644 01/14/99 182,818
*DKK 81,755,583 USD 13,116,781 01/13/99 423,226
*USD 68,546 DKK 445,000 01/13/99 546
*ITL 14,695,399,000 USD 8,844,338 01/12/99 77,174
*ESP 28,522,670 USD 199,000 12/10/98 1,301
*DEM 2,622,500 JPY 206,553,345 12/04/98 2,565
*DEM 2,622,500 JPY 206,553,345 12/04/98 128,880
-----------
$ 2,048,517
-----------
</TABLE>
<TABLE>
<CAPTION>
GROSS UNREALIZED
DEPRECIATION
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*CAD 3,699,772 USD 2,392,738 02/22/99 $ (35,555)
*USD 104,924 JPY 12,307,268 02/10/99 (3,980)
*JPY 100,956,198 USD 826,000 02/10/99 (2,034)
*GBP 991,000 DEM 2,744,376 01/29/99 (50,669)
*GBP 1,141,000 DEM 3,121,126 01/29/99 (39,074)
*USD 277,573 GBP 166,250 01/29/99 (3,998)
*USD 3,032,862 GBP 1,834,540 01/29/99 (14,017)
*USD 1,218,000 DEM 1,981,723 01/25/99 (46,666)
*USD 1,592,635 DEM 2,626,000 01/25/99 (40,489)
*USD 2,831,868 DEM 4,685,467 01/25/99 (62,435)
*SEK 6,265,500 DEM 1,332,206 01/22/99 (17,701)
*USD 174,424 SEK 1,361,120 01/22/99 (6,706)
*USD 3,376,739 NLG 6,400,000 01/21/99 (20,516)
*USD 2,102,389 FRF 11,383,488 01/14/99 (96,683)
*USD 591,777 FRF 3,290,280 01/14/99 (12,049)
*USD 2,017,984 DKK 12,722,378 01/13/99 (42,679)
*USD 2,034,180 DKK 12,780,750 01/13/99 (49,812)
*ESP 998,097,933 USD 6,800,885 12/10/98 (117,216)
*USD 2,634,670 ESP 377,461,288 12/10/98 (18,378)
*USD 1,563,413 ESP 220,136,342 12/10/98 (37,585)
*JPY 207,519,606 USD 1,554,000 12/04/98 (131,510)
*JPY 202,756,450 USD 1,555,000 12/04/98 (91,823)
-----------
(941,575)
-----------
Net Unrealized Appreciation................. $ 1,106,942
===========
</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>
CAD -- Canadian Dollar
CHF -- Swiss Franc
DEM -- Deutsche Mark
DKK -- Danish Krone
ESP -- Spanish Peseta
FRF -- French Franc
GBP -- Pound Sterling
ITL -- Italian Lira
JPY -- Japanese Yen
NLG -- Netherlands Guilder
SEK -- Swedish Krona
USD -- United States Dollar
</TABLE>
See Notes to Financial Statements
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9
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SUNAMERICA SERIES TRUST
CORPORATE BOND PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 84.9% AMOUNT VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 6.8%
Apparel & Textiles -- 0.7%
Collins & Aikman Corp. 10.00% 2007.......................... $ 50,000 $ 52,375
Collins & Aikman Corp. 11.50% 2006.......................... 250,000 260,000
GFSI, Inc., Series B 9.63% 2007*............................ 100,000 93,875
Pillowtex Corp., Series B 9.00% 2007........................ 75,000 79,500
Pillowtex Corp. 10.00% 2006................................. 125,000 135,625
Reliance Industries Ltd. 8.25% 2027*........................ 500,000 420,625
Automotive -- 0.9%
Aftermarket Technology Corp. 12.00% 2004.................... 75,000 78,562
Arvin Industries, Inc. 6.75% 2008........................... 375,000 347,197
Dana Corp. 7.00% 2028....................................... 800,000 812,968
Lear Corp.+ 9.50% 2006...................................... 50,000 54,750
Oshkosh Truck Corp. 8.75% 2008*............................. 50,000 47,438
Housing -- 0.2%
American Architectural Products Corp. 11.75% 2007*.......... 50,000 40,875
American Builders & Contractors Supply Co., Inc., Series B
10.63% 2007............................................... 75,000 71,438
Building Materials Corp. of America 8.63% 2006.............. 100,000 104,000
Falcon Building Products, Inc. zero coupon 2007(1).......... 100,000 55,000
Sealy Mattress Corp., Series B zero coupon 2007*............ 250,000 149,687
Retail -- 5.0%
Boyds Collection Ltd. 9.00% 2008*........................... 150,000 153,750
Carrols Corp. 9.50% 2008*................................... 100,000 101,500
Dayton Hudson Corp. 10.00% 2000............................. 1,000,000 1,085,630
Harcourt General, Inc. 7.20% 2027........................... 1,370,000 1,302,432
Jitney Jungle Stores of America, Inc. 10.38% 2007........... 125,000 126,875
Kmart Corp. Pass Through Trust 8.54% 2015................... 1,130,550 1,157,423
Leslies Poolmart, Inc. 10.38% 2004.......................... 50,000 51,875
Penney (J.C.) Co., Inc. 7.65% 2016.......................... 500,000 533,640
Safeway, Inc. 6.50% 2008.................................... 750,000 764,692
ShopKo Stores, Inc. 9.25% 2022.............................. 1,300,000 1,631,929
Stater Brothers Holdings, Inc. 9.00% 2004................... 100,000 96,000
-------------
9,809,661
-------------
CONSUMER STAPLES -- 2.3%
Food, Beverage & Tobacco -- 1.6%
Agrilink Foods, Inc. 11.88% 2008*........................... 125,000 130,000
Ameriserve Food Distribution, Inc. 10.13% 2007*............. 200,000 178,000
Aurora Foods, Inc., Series B 9.88% 2007..................... 50,000 54,375
Aurora Foods, Inc., Series B 8.75% 2008..................... 75,000 78,094
Carr Gottstein Foods Co. 12.00% 2005........................ 100,000 115,000
Di Giorgio Corp., Series B 10.00% 2007...................... 100,000 95,750
Dimon, Inc. 8.88% 2006...................................... 75,000 74,188
Eagle Family Foods, Inc., Series B 8.75% 2008*.............. 150,000 140,625
International Home Foods, Inc. 10.38% 2006.................. 100,000 107,250
Nebco Evans Holding Co. zero coupon 2007(1)................. 125,000 59,844
Philip Morris Cos., Inc. 7.75% 2027......................... 1,000,000 1,127,530
Purina Mills, Inc. 9.00% 2010............................... 50,000 50,875
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BONDS & NOTES (CONTINUED) AMOUNT VALUE
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CONSUMER STAPLES (continued)
Household Products -- 0.7%
NBTY, Inc., Series B 8.63% 2007............................. $ 100,000 $ 98,125
Playtex Family Products Corp. 9.00% 2003.................... 200,000 207,000
Polymer Group, Inc., Series B 8.75% 2008.................... 150,000 148,125
Polymer Group, Inc., Series B 9.00% 2007.................... 200,000 199,500
Revlon Consumer Products Corp. 8.63% 2008................... 400,000 395,000
-------------
3,259,281
-------------
EDUCATION -- 0.4%
University -- 0.4%
Boston University 7.63% 2097................................ 500,000 592,360
-------------
ENERGY -- 3.1%
Energy Services -- 1.3%
Chiles Offshore LLC 10.00% 2008............................. 125,000 107,500
Coastal Corp. 9.75% 2003.................................... 250,000 286,807
Dailey International, Inc. 9.50% 2008....................... 150,000 69,000
Enersis SA 7.40% 2016....................................... 600,000 452,502
ISG Resources, Inc. 10.00% 2008............................. 50,000 49,875
Occidental Petroleum Corp. 8.50% 2004....................... 450,000 457,537
Pride Petroleum Services, Inc. 9.38% 2007................... 175,000 171,500
Tosco Corp. 7.00% 2000...................................... 250,000 254,303
Energy Sources -- 1.8%
Continental Resources, Inc. 10.25% 2008*.................... 125,000 107,188
Forcenergy, Inc. 8.50% 2007................................. 100,000 84,500
Forcenergy, Inc. 9.50% 2006................................. 50,000 45,000
Houston Exploration Co. 8.63% 2008.......................... 125,000 125,000
Husky Oil Ltd. 7.13% 2006................................... 1,000,000 993,800
KCS Energy, Inc. 8.88% 2008................................. 100,000 69,875
Nuevo Energy Co., Series B 8.88% 2008....................... 100,000 99,375
Ocean Energy, Inc. 10.38% 2005.............................. 75,000 80,250
Sun Co., Inc. 9.00% 2024.................................... 750,000 946,537
-------------
4,400,549
-------------
FINANCE -- 19.2%
Banks -- 3.9%
ABN Amro Holdings NV 7.30% 2026............................. 500,000 513,310
Continental Bank NA 12.50% 2001(2).......................... 300,000 346,050
Den Danske Bank 7.40% 2007*................................. 500,000 528,035
Firstbank Puerto Rico 7.63% 2005(3)......................... 750,000 758,708
National Australia Bank Ltd. 6.60% 2007..................... 500,000 511,360
National Bank of Canada 8.13% 2004.......................... 750,000 822,877
Republic New York Corp. 7.75% 2009.......................... 1,225,000 1,350,060
Security Pacific Corp. 11.50% 2000.......................... 275,000 305,616
Swedbank 7.50% 2049......................................... 500,000 457,875
Financial Services -- 12.0%
125 Home Loan Owner Trust 9.26% 2029(3)..................... 1,250,000 1,120,312
Allmerica Financial Corp. 7.63% 2025........................ 500,000 521,685
Amvescap PLC 6.60% 2005*.................................... 1,000,000 967,920
Arvin Capital I 9.50% 2027.................................. 500,000 587,845
Barclays North American Capital Corp. 9.75% 2021............ 1,000,000 1,129,140
Case Equipment Loan Trust 7.30% 2002........................ 28,503 28,614
Chevy Chase Auto Receivables 5.80% 2002..................... 30,417 30,397
CNA Financial Corp. 6.95% 2018.............................. 500,000 489,360
CNA Financial Corp. 7.25% 2023.............................. 500,000 499,690
Continental Global Group, Inc., Series B 11.00% 2007........ 150,000 129,000
</TABLE>
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PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
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FINANCE (continued)
Financial Services (continued)
Delphi Financial Group, Inc. 8.00% 2003..................... $1,000,000 $ 1,070,190
Delphi Funding LLC 9.31% 2027............................... 800,000 932,888
Donaldson Lufkin & Jenrette, Inc. 6.88% 2005................ 1,000,000 1,037,460
Ford Capital BV 9.38% 2001.................................. 600,000 649,824
Ford Capital BV 9.50% 2001.................................. 200,000 218,500
Ford Motor Credit Co. 6.88% 2001............................ 550,000 564,438
General Motors Acceptance Corp. 5.63% 2001.................. 300,000 302,193
Green Tree Financial Corp. 10.25% 2002...................... 970,000 1,037,590
GS Escrow Corp. 7.13% 2005*................................. 200,000 198,066
Lehman Brothers, Inc. 7.38% 2007............................ 1,250,000 1,307,612
Navistar Financial Corp. 6.55% 2001......................... 25,453 25,461
Reinsurance Group America, Inc. 7.25% 2006*................. 500,000 543,655
Resolution Funding Corp. zero coupon 2021................... 640,000 183,795
Salomon, Inc. 7.20% 2004.................................... 525,000 557,603
Santander Finance Issuances 7.25% 2015...................... 1,000,000 1,008,380
Sun Communities Operating LP 6.77% 2005..................... 900,000 948,231
Susa Partnership LP 7.50% 2027.............................. 750,000 676,080
Susa Partnership LP 8.20% 2017.............................. 250,000 250,083
Tanger Properties Ltd. 8.75% 2001........................... 85,000 88,820
Trizec Finance Corp., Ltd. 10.88% 2005...................... 67,000 69,010
Insurance -- 3.3%
Conseco, Inc. 6.40% 2003.................................... 500,000 473,870
Conseco, Inc. 10.50% 2004................................... 750,000 838,237
Equitable Life Assurance Society of the US 7.70% 2015*...... 1,000,000 1,078,400
Life Re Capital Trust I 8.72% 2027*......................... 1,000,000 1,153,400
Provident Cos., Inc. 7.41% 2038............................. 350,000 346,192
USF&G Capital II, Series B 8.47% 2027....................... 500,000 558,930
USF&G Capital III 8.31% 2046*............................... 250,000 291,665
-------------
27,508,427
-------------
HEALTHCARE -- 1.0%
Health Services -- 0.8%
Everest Healthcare Services Corp. 9.75% 2008*............... 75,000 73,125
Hudson Respiratory Care, Inc. 9.13% 2008*................... 125,000 95,625
Tenet Healthcare Corp. 8.00% 2005........................... 450,000 465,750
Tenet Healthcare Corp. 8.13% 2008*.......................... 500,000 520,810
Medical Products -- 0.1%
Conmed Corp. 9.00% 2008..................................... 150,000 142,125
Medical Products & Services -- 0.1%
Dade International, Inc. 11.13% 2006*....................... 100,000 108,500
-------------
1,405,935
-------------
INDUSTRIAL & COMMERCIAL -- 5.6%
Aerospace & Military Technology -- 0.2%
Aviation Sales Co. 8.13% 2008............................... 100,000 100,000
Eagle Picher Industries, Inc. 9.38% 2008.................... 150,000 144,000
Business Services -- 3.8%
Allied Waste Industries, Inc. zero coupon 2007*(1).......... 275,000 236,500
Allied Waste North America, Inc. 10.25% 2006*............... 100,000 117,000
Anchor Lamina, Inc. 9.88% 2008.............................. 50,000 44,875
Coinmach Corp. 11.75% 2005.................................. 50,000 54,375
Dialog Corp. PLC, Series A 11.00% 2007...................... 75,000 78,000
Diva Systems Corp. zero coupon 2008*(1)(2).................. 100,000 30,000
Glenoit Corp. 11.00% 2007................................... 50,000 48,125
Grove Worldwide LLC 9.25% 2008*............................. 150,000 141,750
</TABLE>
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PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Business Services (continued)
Hertz Corp. 7.00% 2028...................................... $1,000,000 $ 969,280
Holt Group, Inc. 9.75% 2006*................................ 100,000 67,875
International Utility Structures 10.75% 2008................ 50,000 46,625
Service Corp. International 6.50% 2008...................... 550,000 558,519
SMFC Trust 7.76% 2035(3).................................... 245,752 217,030
Statia Terminals International, Series B 11.75% 2003........ 50,000 50,875
Tekni Plex, Inc., Series B 9.25% 2008*...................... 125,000 129,688
United Stationers Supply Co. 12.75% 2005.................... 33,000 36,713
USA Waste Service, Inc. 7.13% 2007.......................... 750,000 802,747
USA Waste Service, Inc. 6.13% 2001.......................... 650,000 648,628
Waste Management, Inc. 8.75% 2018........................... 850,000 921,799
WESCO Distribution, Inc., Series B 9.13% 2008............... 250,000 253,125
WESCO International, Inc. zero coupon 2008(1)............... 50,000 29,938
Electrical Equipment -- 0.1%
Amphenol Corp. 9.88% 2007................................... 150,000 153,750
Machinery -- 0.2%
Alvey Systems, Inc. 11.38% 2003............................. 100,000 100,500
CLARK Material Handling Co. 10.75% 2006..................... 100,000 102,250
National Equipment Services, Inc. 10.00% 2004............... 50,000 46,938
Neenah Corp., Series B 11.13% 2007.......................... 100,000 103,750
Multi-Industry -- 0.2%
Fisher Scientific International, Inc. 9.00% 2008............ 250,000 251,250
Four M Corp., Series B 12.00% 2006.......................... 50,000 33,250
Transportation -- 1.1%
Allied Holdings, Inc., Series B 8.63% 2007.................. 100,000 103,500
Ameritruck Distribution Corp., Series B 12.25% 2005(4)...... 100,000 6,000
Gearbulk Holdings Ltd. 11.25% 2004.......................... 100,000 103,500
HDA Parts Systems, Inc. 12.00% 2005*........................ 50,000 45,875
Johnstown America Industries, Inc., Series C 11.75% 2005.... 50,000 52,250
Stena AB 8.75% 2007......................................... 100,000 93,875
Stena AB 10.50% 2005........................................ 100,000 101,500
Stena Line AB 10.63% 2008................................... 100,000 90,750
Transport Ocean Container Corp. 12.25% 2004................. 850,000 964,750
-------------
8,081,155
-------------
INFORMATION & ENTERTAINMENT -- 10.3%
Broadcasting & Media -- 8.8%
Acme Television LLC, Series B zero coupon 2004.............. 75,000 60,094
Affiliated Newspapers Investments, Inc. zero coupon
2006(1)(2)................................................ 100,000 98,500
Big City Radio, Inc. zero coupon 2005*...................... 150,000 100,500
CBS Radio Corp. 11.38% 2009(5).............................. 105,200 124,005
CF Cable TV, Inc. 9.13% 2007................................ 500,000 534,540
Chancellor Media Corp. 8.75% 2007........................... 50,000 51,250
Chancellor Media Corp. 9.38% 2004........................... 100,000 106,000
Chancellor Media Corp., Series B 10.50% 2007................ 100,000 106,250
Chancellor Media Corp. 9.00% 2008*.......................... 150,000 158,250
Chancellor Media Corp., Series B 8.13% 2007................. 300,000 300,000
Comcast Cable Communications 8.50% 2027*.................... 500,000 615,150
Comcast Corp. 9.38% 2005.................................... 200,000 214,078
Comcast UK Cable Partners Ltd. zero coupon 2007(1).......... 175,000 151,375
Continental Cablevision, Inc. 9.50% 2013.................... 1,250,000 1,471,300
CSC Holdings, Inc. 9.25% 2005............................... 325,000 347,750
Cumulus Media, Inc. 10.38% 2008............................. 75,000 78,750
Diamond Cable PLC zero coupon 2007*(1)...................... 150,000 109,125
Diamond Holdings PLC 9.13% 2008*............................ 100,000 96,250
</TABLE>
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PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT (continued)
Broadcasting & Media (continued)
Echostar Satellite Broadcasting Corp. zero coupon 2004(1)... $ 150,000 $ 145,500
Echostar DBS Corp. 12.50% 2002.............................. 100,000 113,000
Fox/Liberty Networks LLC zero coupon 2007*(1)............... 250,000 178,750
Fox/Liberty Networks LLC 8.88% 2007......................... 100,000 103,000
Garden State Newspapers, Inc., Series B 8.75% 2009.......... 50,000 48,375
Hollinger International Publishing, Inc. 9.25% 2007......... 125,000 132,500
International CableTel, Inc. zero coupon 2006(1)............ 250,000 211,875
Lamar Advertising Co. 8.63% 2007............................ 150,000 155,062
Loews Ciniplex Entertainment Corp. 8.88% 2008............... 100,000 103,500
Millicom International Cellular SA zero coupon 2006(1)...... 200,000 140,500
News America Holdings Inc. 7.90% 2095....................... 450,000 475,209
News America Holdings, Inc. 8.00% 2016...................... 650,000 724,106
News America Holdings, Inc. 10.13% 2012..................... 500,000 585,500
Outdoor Systems, Inc. 8.88% 2007............................ 300,000 318,000
Paramount Communications, Inc. 8.25% 2022................... 500,000 522,840
Pegasus Communications Corp. 9.63% 2005..................... 100,000 99,750
Pegasus Communications Corp. 9.75% 2006..................... 50,000 50,250
Regal Cinemas, Inc. 9.50% 2008*............................. 225,000 236,875
Rogers Cablesystems Ltd. 10.00% 2007........................ 100,000 112,000
Rogers Cablesystems Ltd. Class B 10.00% 2005................ 225,000 253,125
SFX Broadcasting, Inc., Series B 10.75% 2006................ 33,000 36,548
Sinclair Broadcast Group, Inc. 8.75% 2007................... 150,000 151,125
Sinclair Broadcast Group, Inc. 9.00% 2007*.................. 175,000 177,187
Sinclair Broadcast Group, Inc. 10.00% 2005.................. 50,000 52,375
Telewest Communications PLC zero coupon 2007(1)............. 425,000 357,000
Teligent, Inc. 11.50% 2007.................................. 150,000 143,625
TKR Cable, Inc. 10.50% 2007................................. 1,200,000 1,310,928
UIH Australia Pacific, Inc., Series B zero coupon 2006(1)... 100,000 54,000
United International Holdings, Inc. 10.75% 2008(1).......... 250,000 146,250
Viacom, Inc. 8.00% 2006..................................... 550,000 567,875
Ziff Davis, Inc. 8.50% 2008................................. 200,000 190,000
Leisure & Tourism -- 1.5%
AMF Group, Inc., Series B zero coupon 2006(1)............... 197,000 112,290
Continental Airlines, Series B 6.90% 2017................... 750,000 742,755
Courtyard Marriott Ltd., Series B 10.75% 2008............... 50,000 52,125
HMH Properties, Inc, Series B 7.88% 2008.................... 200,000 199,750
Premier Parks, Inc. zero coupon 2008(1)..................... 250,000 170,000
Premier Parks, Inc., Series A 12.00% 2003................... 100,000 107,750
Six Flags Theme Parks, Inc., Series A 12.25% 2005(1)........ 125,000 138,125
Southwest Airlines Co. 7.38% 2027........................... 590,000 577,115
-------------
14,719,707
-------------
INFORMATION TECHNOLOGY -- 7.3%
Communication Equipment -- 0.1%
Hermes Europe Railtel 11.50% 2007........................... 150,000 166,500
Metromedia Fiber Network, Inc. 10.00% 2008*................. 50,000 51,750
Computers & Business Equipment -- 0.6%
Dell Computer Corp. 7.10% 2028.............................. 250,000 253,710
Harris Corp. 10.38% 2018.................................... 500,000 527,190
United States Office Product Co. 9.75% 2008................. 225,000 157,500
Electronics -- 0.5%
Raytheon Co. 6.15% 2008..................................... 750,000 759,293
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BONDS & NOTES (CONTINUED) AMOUNT VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Software -- 0.3%
PSINet Inc. 11.50% 2008*.................................... $ 50,000 $ 53,375
PSINet, Inc. 10.00% 2005.................................... 100,000 100,000
Sitel Corp. 9.25% 2006...................................... 200,000 164,000
Verio, Inc. 11.25% 2008*.................................... 50,000 51,875
Telecommunications -- 5.8%
Anixter, Inc. 8.00% 2003.................................... 1,300,000 1,383,148
Arch Communications Group, Inc. 12.75% 2007*................ 100,000 94,750
BellSouth Telecommunications, Inc. 6.00% 2002............... 500,000 511,490
BellSouth Telecommunications, Inc. 7.00% 2095............... 1,250,000 1,366,587
BellSouth Telecommunications, Inc. 7.63% 2035............... 250,000 274,640
Call-Net Enterprises, Inc. zero coupon 2007(1).............. 250,000 160,625
Call-Net Enterprises, Inc. zero coupon 2008(1).............. 175,000 104,125
Charter Communications South East LP 11.25% 2006............ 50,000 55,000
Comcast Cellular Holdings, Inc., Series B 9.50% 2007........ 50,000 54,000
E Spire Communications, Inc. 13.75% 2007.................... 50,000 53,750
E Spire Communications, Inc. zero coupon 2005(1)............ 75,000 57,375
ICG Holdings, Inc. zero coupon 2006......................... 175,000 129,500
Intermedia Communications, Inc. zero coupon 2006(1)......... 175,000 139,125
Intermedia Communications, Inc. zero coupon 2007(1)......... 125,000 88,437
Intermedia Communications, Inc. 8.60% 2008*................. 100,000 97,500
IXC Communications, Inc. 9.00% 2008*........................ 150,000 151,500
Lenfest Communications, Inc. 8.38% 2005..................... 150,000 159,000
Level 3 Communications, Inc. zero coupon 2008(1)*........... 125,000 74,844
Level 3 Communications, Inc. 9.13% 2008..................... 475,000 473,812
McLeod USA, Inc. zero coupon 2007(1)........................ 350,000 267,750
McLeod USA, Inc. 8.38% 2008*................................ 50,000 50,000
Metronet Communications Corp. zero coupon 2008(1)........... 475,000 294,500
Metronet Communications Corp. 10.63% 2008*.................. 50,000 53,625
Metronet Communications Corp. 12.00% 2007(2)................ 50,000 55,125
Nextel Communications, Inc. zero coupon 2007(1)............. 275,000 182,187
Nextel Communications, Inc. zero coupon 2008*(1)............ 375,000 232,500
Nextel International, Inc. zero coupon 2008*(1)............. 75,000 35,250
Nextlink Communications, Inc. zero coupon 2008(1)........... 150,000 88,125
Nextlink Communications, Inc. 9.00% 2008*................... 100,000 96,000
NTL, Inc. zero coupon 2008*(1).............................. 150,000 96,938
NTL, Inc. zero coupon 2008*(1).............................. 200,000 128,250
Orange PLC 8.00% 2008....................................... 150,000 152,625
Pathnet, Inc. 12.25% 2008................................... 100,000 76,500
Qwest Communications International, Inc., Series B zero
coupon 2008*(1)........................................... 50,000 37,688
Qwest Communications International, Inc., Series B 10.88%
2007...................................................... 150,000 173,250
Qwest Communications International, Inc. zero coupon
2007(1)................................................... 100,000 77,500
Rogers Cantel, Inc. 8.80% 2007.............................. 75,000 75,000
Telecommunications Techniques LLC 9.75% 2008*............... 225,000 223,875
Telesystem International Wireless, Inc., Series B zero
coupon 2007(1)............................................ 250,000 112,500
Triton PCS, Inc. zero coupon 2008*(1)....................... 250,000 110,938
Vanguard Cellular Systems, Inc. 9.38% 2006.................. 100,000 113,000
Viatel, Inc. zero coupon 2008(1)(3)......................... 50,000 29,000
Viatel, Inc. 11.25% 2008(3)................................. 75,000 74,250
-------------
10,550,777
-------------
MATERIALS -- 6.0%
Chemicals -- 0.2%
Chattem, Inc. 8.88% 2008.................................... 125,000 128,438
Huntsman Corp. 9.50% 2007*.................................. 100,000 99,000
ISP Holdings, Inc., Series B 9.75% 2002..................... 50,000 52,000
ISP Holdings, Inc. Class B 9.00% 2003....................... 75,000 78,000
</TABLE>
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PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Forest Products -- 1.2%
Buckeye Cellulose Corp. 9.25% 2008.......................... $ 125,000 $ 130,625
Donohue Forest Products, Inc. 7.63% 2007.................... 750,000 829,005
Pope & Talbot, Inc. 8.38% 2013.............................. 250,000 252,410
Quno Corp. 9.13% 2005....................................... 400,000 426,000
Stone Container Corp. 11.50% 2004........................... 50,000 52,500
Stone Container Corp. 12.25% 2002........................... 50,000 50,500
Metals & Minerals -- 4.6%
A.K. Steel Holding Corp. 9.13% 2006......................... 100,000 105,000
Albecca, Inc. 10.75% 2008*.................................. 200,000 204,000
Barrick Gold Corp. 7.50% 2007............................... 750,000 781,597
Euramax International PLC 11.25% 2006....................... 100,000 101,000
Inco Ltd. 9.60% 2022........................................ 1,325,000 1,455,552
Metals USA, Inc. 8.63% 2008................................. 75,000 66,563
MMI Products, Inc., Series B 11.25% 2007*................... 150,000 164,625
Normandy Finance Ltd. 7.50% 2005*........................... 1,150,000 1,188,088
Placer Dome, Inc. 8.50% 2045................................ 1,120,000 1,062,970
Ryderson Tull, Inc. 9.13% 2006.............................. 100,000 106,625
Santa Fe Pacific Gold Corp. 8.38% 2005...................... 225,000 226,687
Southdown, Inc., Series B 10.00% 2006....................... 1,000,000 1,085,000
-------------
8,646,185
-------------
MUNICIPAL BONDS -- 0.5%
Municipal Bonds -- 0.5%
Atlanta & Fulton County Georgia Recreation 7.00% 2028....... 500,000 517,450
McKeesport Pennsylvania, Series B 7.30% 2020................ 250,000 260,533
-------------
777,983
-------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 1.4%
Foreign Government -- 1.4%
Province of Quebec 11.00% 2015.............................. 250,000 278,738
Province of Quebec 13.25% 2014.............................. 890,000 980,032
Republic of Columbia 7.25% 2003............................. 250,000 215,000
Republic of South Africa 9.63% 1999......................... 500,000 498,405
-------------
1,972,175
-------------
REAL ESTATE -- 0.7%
Real Estate Companies -- 0.1%
AEI Holdings, Inc. 10.00% 2007*............................. 50,000 51,500
Real Estate Investment Trusts -- 0.6%
Chelsea GCA Realty, Inc. 7.75% 2001......................... 150,000 148,851
Price REIT, Inc. 7.50% 2006................................. 750,000 761,318
-------------
961,669
-------------
U.S. GOVERNMENT & AGENCIES -- 17.9%
U.S. Government & Agencies -- 17.9%
Federal Farm Credit Bank 5.93% 2008......................... 1,250,000 1,297,425
Federal Home Loan Banks 5.80% 2008.......................... 3,000,000 3,093,270
Federal National Mortgage Association 6.50% 2011............ 996,826 1,011,150
Federal National Mortgage Association 8.50% 2005............ 750,000 775,545
Government National Mortgage Association 8.00% 2026......... 930,950 968,188
United States Treasury Bonds 6.00% 2026..................... 1,750,000 1,922,270
United States Treasury Bonds 6.13% 2027..................... 1,000,000 1,127,660
United States Treasury Bonds 6.38% 2027..................... 3,832,000 4,437,341
United States Treasury Bonds 8.00% 2021..................... 1,750,000 2,360,855
United States Treasury Bonds 8.13% 2021..................... 750,000 1,020,585
</TABLE>
- ---------------------
16
<PAGE> 18
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT & AGENCIES (continued)
U.S. Government & Agencies (continued)
United States Treasury Bonds 8.50% 2020..................... $1,400,000 $ 1,956,276
United States Treasury Bonds 11.63% 2004.................... 1,000,000 1,351,090
United States Treasury Notes 5.63% 2008..................... 2,000,000 2,127,500
United States Treasury Notes 6.13% 2007..................... 1,900,000 2,072,786
United States Treasury Notes 6.25% 2003..................... 250,000 264,805
-------------
25,786,746
-------------
UTILITIES -- 2.4%
Electric Utilities -- 2.0%
California Energy, Inc. 10.25% 2004(6)...................... 600,000 631,332
El Paso Electric Co. 9.40% 2011............................. 125,000 141,212
Israel Electric Corp Ltd. 7.88% 2026*....................... 850,000 845,240
Niagara Mohawk Power Corp. zero coupon 2010(1).............. 50,000 37,438
Puget Sound Energy 7.02% 2027............................... 900,000 964,458
Tenaga Nasional Berhad 7.50% 2096*.......................... 500,000 262,500
Gas & Pipeline Utilities -- 0.1%
Universal Compression, Inc. zero coupon 2008(1)............. 150,000 89,813
Telephone -- 0.3%
American Cellular Corp. 10.50% 2008*........................ 175,000 172,812
Paging Network, Inc. 10.00% 2008............................ 175,000 180,250
Paging Network, Inc. 10.13% 2007............................ 50,000 51,562
United States Xchange LLC 15.00% 2008*...................... 75,000 78,938
-------------
3,455,555
-------------
TOTAL BONDS & NOTES (cost $120,682,803)..................... 121,928,165
-------------
<CAPTION>
PREFERRED STOCK -- 2.7% SHARES
----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER STAPLES -- 0.0%
Food, Beverage & Tobacco -- 0.0%
Nebco Evans Holding Co. 11.25%(5)........................... 369 24,842
-------------
FINANCE -- 0.7%
Financial Services -- 0.7%
Prologis Trust, Series C 8.54%.............................. 20,000 1,013,750
-------------
INFORMATION & ENTERTAINMENT -- 0.5%
Broadcasting & Media -- 0.5%
Benedek Communications Corp. 11.50%*(5)..................... 75 74,250
Capstar Broadcasting Partners 12.00%*(5).................... 563 64,886
Cumulus Media, Inc. Series A 13.75%......................... 77 80,850
Pegasus Communications Corp. 12.75%*(5)..................... 118 114,464
Primedia, Inc. Series F, 9.20%.............................. 3,000 291,750
SFX Broadcasting, Inc. Series E, 12.65%*(5)................. 282 33,910
Sinclair Capital 11.65%..................................... 500 54,312
-------------
714,422
-------------
INFORMATION TECHNOLOGY -- 0.6%
Communication Equipment -- 0.0%
Global Crossing Holdings Ltd. 10.50%*(5).................... 500 50,500
Software -- 0.6%
Microsoft Corp. convertible $2.196.......................... 8,260 804,318
</TABLE>
---------------------
17
<PAGE> 19
<TABLE>
<CAPTION>
PREFERRED STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Telecommunications -- 0.0%
Nextel Communications, Inc. 11.125%(5)...................... 53 $ 48,110
Viatel, Inc., Series A 10.0%(3)............................. 62 3,742
-------------
906,670
-------------
REAL ESTATE -- 0.8%
Real Estate Investment Trusts -- 0.8%
Highwood Properties, Inc. Series A, 8.625%.................. 1,000 1,071,875
-------------
UTILITIES -- 0.1%
Electric Utilities -- 0.1%
Texas Utilities Co. 9.25%................................... 3,000 167,250
-------------
TOTAL PREFERRED STOCK (cost $3,824,564)..................... 3,898,809
-------------
<CAPTION>
WARRANTS -- 0.0%+
----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 0.0%
Broadcasting & Media -- 0.0%
Australis Holdings Property Ltd. 10/30/01*.................. 50 0
Pegasus Communications Corp. 01/01/2007..................... 100 3,252
UIH Australia Pacific, Inc. 05/15/06........................ 100 500
-------------
3,752
-------------
INFORMATION TECHNOLOGY -- 0.0%
Telecommunications -- 0.0%
Metronet Communications Corp. 08/15/07*..................... 50 1,754
Pathnet, Inc. 04/15/08(3)*.................................. 100 1,000
-------------
2,754
-------------
TOTAL WARRANTS (cost $2,772)................................ 6,506
-------------
TOTAL INVESTMENT SECURITIES (cost $124,510,139)............. 125,833,480
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 10.6% AMOUNT
----------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 2.9%
Continental Corp. 8.25% due 04/15/99........................ $ 100,000 100,984
Figgie International, Inc. 9.88% due 10/01/99............... 2,250,000 2,272,500
Signet Banking Corp. 9.63% due 06/01/99..................... 300,000 305,622
Valassis Inserts, Inc. 9.38% due 03/15/99................... 1,500,000 1,514,295
-------------
TOTAL CORPORATE SHORT-TERM NOTES (cost $4,213,407).......... 4,193,401
-------------
TIME DEPOSIT -- 7.0%
Cayman Island Time Deposit with State Street Bank & Trust
Co. 4.50% due 12/01/98 (cost $9,977,000).....................9,977,000 9,977,000
-------------
</TABLE>
- ---------------------
18
<PAGE> 20
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES (CONTINUED) AMOUNT VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT -- 0.7%
United States Treasury Notes 7.75% due 11/30/99
(cost $1,020,536)......................................... $1,000,000 $ 1,029,220
-------------
TOTAL SHORT-TERM SECURITIES (cost $15,210,943).............. 15,199,621
-------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS --
(cost $139,721,082) 98.2% 141,033,101
Other assets less liabilities -- 1.8 2,528,185
------ -------------
NET ASSETS -- 100.0% $ 143,561,286
====== =============
</TABLE>
-----------------------------
* Resale restricted to qualified institutional buyers
+ Non-income producing securities
(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) Bond in default
(5) PIK ("Payment-in-Kind") payment made with additional
securities in lieu of cash
(6) Variable rate security; rate as of November 30, 1998
See Notes to Financial Statements
---------------------
19
<PAGE> 21
- ---------------------
SUNAMERICA SERIES TRUST
HIGH-YIELD BOND PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 88.2% AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 8.0%
Apparel & Textiles -- 1.8%
Phillips Van Heusen Corp. 7.75% 2023........................ $ 2,500,000 $ 2,253,200
Phillips Van Heusen Corp. 9.50% 2008*....................... 2,750,000 2,756,875
Automotive -- 0.5%
Trident Automotive PLC 10.00% 2005*......................... 1,500,000 1,567,500
Housing -- 2.7%
Congoleum Corp. 8.63% 2008.................................. 2,250,000 2,216,250
Lifestyle Furnishings International Ltd. 10.88% 2006........ 5,000,000 5,362,500
Retail -- 3.0%
Electronic Retailing Systems International, Inc. zero coupon
2004(1)................................................... 1,500,000 553,125
Evenflo Company, Inc. 11.75% 2006*.......................... 1,250,000 1,287,500
Jitney Jungle Stores of America, Inc. 12.00% 2006........... 4,250,000 4,738,750
Jumbo Sports, Inc. 4.25% 2000............................... 900,000 110,250
Shop At Home, Inc. 11.00% 2005.............................. 2,000,000 1,997,500
-------------
22,843,450
-------------
CONSUMER STAPLES -- 4.8%
Food, Beverage & Tobacco -- 0.9%
Specialty Foods Corp. 11.13% 2002........................... 2,850,000 2,451,000
Household Products -- 3.9%
Carson, Inc. 10.38% 2007.................................... 2,000,000 1,100,000
French Fragrances, Inc. 10.38% 2007......................... 2,750,000 2,722,500
Polymer Group Inc. 9.00% 2007............................... 3,500,000 3,491,250
Polymer Group, Inc. 8.75% 2008*............................. 3,850,000 3,801,875
-------------
13,566,625
-------------
ENERGY -- 5.1%
Energy Services -- 2.6%
Gulfmark Offshore, Inc. 8.75% 2008.......................... 3,500,000 3,403,750
Parker Drilling Co. 9.75% 2006.............................. 3,990,000 3,850,350
Energy Sources -- 2.5%
Houston Exploration Co. 8.63% 2008*......................... 1,025,000 1,025,000
P&L Coal Holdings Corp. 8.88% 2008*......................... 2,000,000 2,055,000
Southwest Royalties, Inc. 10.50% 2004....................... 2,500,000 1,293,750
Statia Terminals International NV 11.75% 2003............... 2,750,000 2,798,125
-------------
14,425,975
-------------
FINANCE -- 2.6%
Banks -- 1.1%
Bankunited Capital Trust 10.25% 2026........................ 2,000,000 2,115,000
Western Financial Savings Bank 8.88% 2007................... 1,500,000 1,125,000
Financial Services -- 1.5%
Dollar Financial Group, Inc. 10.88% 2006.................... 2,000,000 2,020,000
Richmont Marketing Specialist 10.13% 2007*.................. 2,500,000 2,093,750
-------------
7,353,750
-------------
</TABLE>
- ---------------------
20
<PAGE> 22
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 4.9%
Drugs -- 1.4%
Schein Pharmaceutical Inc. 8.47% 2004(2).................... $ 4,500,000 $ 4,089,375
Health Services -- 3.5%
Fresenius Medical Care Capital Trust 9.00% 2006............. 2,750,000 2,894,375
Fresenius Medical Care Capital Trust 7.88% 2008*............ 1,250,000 1,250,000
Tenet Healthcare Corp. 8.00% 2005........................... 5,500,000 5,692,500
-------------
13,926,250
-------------
INDUSTRIAL & COMMERCIAL -- 5.1%
Aerospace & Military Technology -- 1.5%
Interlake Corp. 12.13% 2002................................. 2,000,000 2,000,000
L3 Communications Corp. 10.38% 2007......................... 2,000,000 2,205,000
Business Services -- 1.5%
Hunstman Corp. 9.03% 2007*(2)............................... 3,000,000 2,913,750
Metal Management, Inc. 10.00% 2008.......................... 3,000,000 1,432,500
Transportation -- 2.1%
Alpha Shipping PLC 9.50% 2008*.............................. 1,250,000 671,875
Ermis Maritime Holdings Ltd. 12.50% 2006(3)................. 1,500,400 825,220
Golden Ocean Group Ltd. 10.00% 2001......................... 3,350,000 1,238,428
Panoceanic Bulk Carriers Ltd. 12.00% 2007................... 1,000,000 537,500
Pegasus Shipping Ltd. 11.88% 2004........................... 1,500,000 1,312,500
Travelcenters America, Inc. 10.25% 2007..................... 1,500,000 1,486,875
-------------
14,623,648
-------------
INFORMATION & ENTERTAINMENT -- 22.0%
Broadcasting & Media -- 18.7%
Adelphia Communications Corp. 8.13% 2003.................... 4,250,000 4,335,000
Australis Holdings Property Ltd. zero coupon 2002(1)(3)..... 1,000,000 117,500
Big City Radio, Inc. zero coupon 2005(1).................... 2,500,000 1,675,000
Cellnet Data Systems, Inc. zero coupon 2007(1).............. 2,200,000 506,000
Central European Media Enterprises Ltd. 9.38% 2004.......... 3,525,000 2,909,465
Chancellor Media Corp. 9.00% 2008*.......................... 4,000,000 4,240,000
Comcast UK Cable Partners Ltd. zero coupon 2007(1).......... 1,500,000 1,297,500
Diamond Holdings PLC 9.13% 2008............................. 2,500,000 2,406,250
Echostar Communications Corp. zero coupon 2004(1)(4)........ 3,500,000 3,517,500
EchoStar DBS Corp. 12.50% 2002.............................. 1,250,000 1,412,500
Echostar Satellite Broadcasting Corp. zero coupon 2004(1)... 2,000,000 1,940,000
International CableTel, Inc. zero coupon 2006(1)............ 5,000,000 4,237,500
Knology Holdings, Inc. zero coupon 2007(1).................. 2,000,000 900,000
Mediacom LLC/Mediacom Capital Corp. 8.50% 2008.............. 5,500,000 5,637,500
Midcom Communications, Inc. 8.25% 2003(5)................... 550,000 92,125
Omnipoint Communications, Inc. 8.56% 2006*(2)............... 2,979,501 2,867,770
Paging Network Do Brasil SA 13.50% 2005..................... 1,594,000 921,523
Radio One, Inc. 7.00% 2004.................................. 1,000,000 986,250
Spanish Broadcasting Systems, Inc. 12.50% 2002.............. 2,250,000 2,475,000
Telewest Communications PLC zero coupon 2007(1)............. 1,000,000 840,000
Telewest Communications PLC 11.25% 2008*.................... 3,000,000 3,390,000
UIH Australia Pacific, Inc. zero coupon 2006(1)............. 1,000,000 540,000
United International Holdings, Inc. zero coupon 2008(1)..... 4,500,000 2,632,500
Wavetek Corp. 10.13% 2007................................... 3,500,000 3,386,250
Entertainment Products -- 0.4%
Outboard Marine Corp. 10.75% 2008*.......................... 1,000,000 987,500
Leisure & Tourism -- 2.9%
Hard Rock Hotel, Inc. 9.25% 2005............................ 2,650,000 2,650,000
Station Casinos, Inc. 9.63% 2003............................ 5,500,000 5,698,550
-------------
62,599,183
-------------
</TABLE>
---------------------
21
<PAGE> 23
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY -- 24.5%
Computers & Business Equipment -- 0.4%
Diva Systems Corp. zero coupon 2008*(1)(4).................. $ 3,250,000 $ 975,000
Electronics -- 0.9%
Park 'N View, Inc. 13.00% 2008*(4).......................... 3,000,000 2,610,060
Telecommunications -- 23.2%
Call-Net Enterprises, Inc. 8.00% 2008....................... 1,750,000 1,706,250
Centennial Cellular Corp. 8.88% 2001........................ 3,500,000 3,710,000
Comcast Cellular Holdings, Inc. 9.50% 2007.................. 5,000,000 5,400,000
Covad Communications Group, Inc. zero coupon 2008(1)........ 1,000,000 478,750
DTI Holdings, Inc. zero coupon 2008(1)...................... 3,750,000 1,082,813
E.spire Communications, Inc. zero coupon 2005(1)............ 2,500,000 1,912,500
E.spire Communications, Inc. zero coupon 2008(1)............ 500,000 254,375
Flag Ltd. 8.25% 2008........................................ 2,500,000 2,537,500
Global Crossing Ltd. 9.63% 2008............................. 1,000,000 1,075,000
Globix Corp. 13.00% 2005.................................... 3,000,000 2,497,500
Hermes Europe Railtel BV 11.50% 2007........................ 4,000,000 4,440,000
ICG Holdings, Inc. zero coupon 2007(1)...................... 3,500,000 2,240,000
ICG Services, Inc. zero coupon 2008(1)...................... 3,000,000 1,616,250
International Wireless Communications zero coupon 2001...... 3,750,000 370,313
KMC Telecom Holdings, Inc. zero coupon 2008(1).............. 4,650,000 2,226,187
Level 3 Communications, Inc. zero coupon 2008*(1)........... 1,500,000 898,125
McCaw International Ltd. zero coupon 2007(1)................ 5,000,000 2,700,000
Microcell Telecommunications zero coupon 2006(1)............ 2,500,000 1,881,250
Nextel Communications, Inc. zero coupon 2004(1)............. 2,000,000 1,985,000
Nextel Communications, Inc. zero coupon 2004(1)............. 2,000,000 1,960,000
Northeast Optic Network, Inc. 12.75% 2008................... 1,500,000 1,440,000
NTL, Inc. zero coupon 2008*(1).............................. 1,750,000 1,130,937
Occidente Y Caribe Celular SA zero coupon 2004(1)........... 2,000,000 1,400,520
Orbcomm Global LP 14.00% 2004............................... 3,000,000 3,022,500
Orion Network Systems, Inc. zero coupon 2007(1)............. 3,500,000 2,244,375
Poland Telecom Finance Bv 14.00% 2007....................... 1,000,000 910,000
Primus Telecommunications Group, Inc. 9.88% 2008............ 3,250,000 2,973,750
Primus Telecommunications Group, Inc. 11.75% 2004........... 1,500,000 1,556,250
Rhythms Netconnections, Inc. zero coupon 2008*(1)(4)........ 2,000,000 860,000
RSL Communications Ltd. 12.25% 2006......................... 2,924,000 3,070,200
Splitrock Services, Inc. 11.75% 2008*....................... 2,250,000 2,064,375
Transtel Pass Through Trust 12.50% 2007*.................... 1,500,000 860,625
Verio, Inc. 13.50% 2004..................................... 1,000,000 1,087,500
Verio, Inc. 11.25% 2008*.................................... 500,000 518,750
Vialog Corp. 12.75% 2001.................................... 2,000,000 1,620,000
Viatel, Inc. zero coupon 2008(1)............................ 500,000 290,000
-------------
69,606,655
-------------
MATERIALS -- 10.2%
Chemicals -- 2.5%
American Pacific Corp. 9.25% 2005........................... 2,000,000 1,985,000
NL Industries, Inc. 11.75% 2003............................. 4,095,000 4,361,175
Sterling Chemicals Holdings, Inc. zero coupon 2008(1)....... 500,000 205,000
Sterling Chemicals, Inc. 11.75% 2006........................ 750,000 630,000
Forest Products -- 1.9%
Ainsworth Lumber Ltd. 12.50% 2007(6)........................ 1,750,000 1,693,125
Doman Industries Ltd. 8.75% 2004............................ 2,250,000 1,890,000
Florida Coast Paper Co. LLC 12.75% 2003..................... 3,000,000 1,410,000
Republic Group, Inc 9.50% 2008*............................. 500,000 487,500
</TABLE>
- ---------------------
22
<PAGE> 24
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Metals & Minerals -- 5.8%
Acme Metals, Inc. 12.50% 2002(5)............................ $ 1,727,000 $ 1,692,460
GS Technologies Operating, Inc. 12.00% 2004................. 1,500,000 1,050,000
International Utility Structures 10.75% 2008................ 1,750,000 1,631,875
Kaiser Aluminum & Chemical Corp. 12.75% 2003................ 3,000,000 2,970,000
Renco Metals, Inc. 11.50% 2003.............................. 1,500,000 1,560,000
Republic Engineered Steels, Inc. 9.88% 2001................. 3,000,000 3,030,000
Schuff Steel Co. 10.50% 2008................................ 2,500,000 2,218,750
WCI Steel, Inc. 10.00% 2004................................. 2,250,000 2,311,875
-------------
29,126,760
-------------
UTILITIES -- 1.0%
Telephone -- 1.0%
Celcaribe SA 13.50% 2004.................................... 1,250,000 1,279,687
USN Communications, Inc. zero coupon 2004(1)................ 2,750,000 1,533,125
-------------
2,812,812
-------------
TOTAL BONDS & NOTES (cost $278,347,025)..................... 250,885,108
-------------
<CAPTION>
COMMON STOCK -- 0.0% SHARES
-----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 0.0%
Broadcasting & Media -- 0.0%
Paging DO Brazil Holdings Co. LLC, Class B*(3).............. 1,594 16
Leisure & Tourism -- 0.0%
Capital Gaming International, Inc.+(3)...................... 103 1
-------------
17
-------------
INFORMATION TECHNOLOGY -- 0.0%
Telecommunications -- 0.0%
Intermedia Communications, Inc.+............................ 702 12,110
Microcell Telecommunications+............................... 14,400 87,300
-------------
99,410
-------------
TOTAL COMMON STOCK (cost $264,935).......................... 99,427
-------------
PREFERRED STOCK -- 2.8%
-----------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 1.7%
Broadcasting & Media -- 1.7%
CSC Holdings, Inc. Series M 11.13%(6)....................... 43,312 4,894,256
INFORMATION TECHNOLOGY -- 1.1%
Telecommunications -- 1.1%
Global Crossing Ltd.*(6).................................... 15,000 1,515,000
Intermedia Communications, Inc. convertible Series F
7.00%*.................................................... 60,000 982,500
IXC Communications, Inc. 7.00%*............................. 15,000 442,500
Omnipoint Corp. convertible 7.00%*.......................... 14,000 269,500
Viatel, Inc., Series A convertible(3)(6).................... 252 15,096
-------------
3,224,596
-------------
TOTAL PREFERRED STOCK (cost $8,909,935)..................... 8,118,852
-------------
</TABLE>
---------------------
23
<PAGE> 25
<TABLE>
<CAPTION>
WARRANTS -- 0.1%+ SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 0.0%
Retail -- 0.0%
Electronic Retailing Systems International, Inc. 2/01/04.... 1,500 $ 15,000
-------------
INDUSTRIAL & COMMERCIAL -- 0.0%
Transportation -- 0.0%
Ermis Maritime Holdings Ltd. 3/15/06(3)..................... 1,364 27,280
Golden Ocean Group Ltd. 8/30/01............................. 2,500 10,000
-------------
37,280
-------------
INFORMATION & ENTERTAINMENT -- 0.0%
Broadcasting & Media -- 0.0%
Australis Holdings Property Ltd. 10/30/01*(3)............... 1,000 0
Cellnet Data Systems, Inc. 9/15/07*......................... 1,700 17,000
Knology Holdings, Inc. 10/15/07*............................ 6,000 12,030
UIH Australia Pacific, Inc. 5/15/06(3)...................... 1,000 5,000
United International Holdings, Inc. 11/15/99................ 1,750 17,500
Gaming -- 0.0%
Fitzgerald Gaming Corp. 3/15/99*(3)......................... 2,000 20
-------------
51,550
-------------
INFORMATION TECHNOLOGY -- 0.1%
Telecommunications -- 0.1%
Bell Technology Group Ltd. 5/01/05(3)....................... 3,000 30
Clearnet Communications, Inc. 9/15/05....................... 3,300 16,540
Covad Communications Group, Inc. 3/15/08(3)................. 1,000 10
DTI Holdings, Inc. 3/01/08*................................. 18,750 187
International Wireless Communication Holdings, Inc.
8/15/07*(3)............................................... 3,750 0
KMC Telecom Holdings, Inc. 1/31/08*(3)...................... 4,650 11,625
Occidente Y Caribe Celular SA 3/15/04*(3)................... 8,000 64,000
Poland Telecom Finance BV 12/01/07(3)....................... 1,000 10
Primus Telecomm Group, Inc. 8/01/04......................... 1,000 5,015
Splitrock Services, Inc. 7/15/08*(3)........................ 2,250 22,500
Vialog Corp. 11/15/01....................................... 2,000 2,500
-------------
122,417
-------------
TOTAL WARRANTS (cost $285,595).............................. 226,247
-------------
TOTAL INVESTMENT SECURITIES (cost $287,807,490)............. 259,329,634
-------------
PRINCIPAL
SHORT-TERM SECURITIES -- 1.4% AMOUNT
-----------------------------------------------------------------------------------------
CORPORATE SHORT-TERM NOTES -- 1.4%
Revlon Consumer Products Corp. 9.50% due 6/01/99............ $ 2,000,000 1,990,000
Stone Container Corp. 11.88% due 12/01/98................... 2,000,000 1,990,000
-------------
TOTAL SHORT-TERM SECURITIES (cost $4,018,700)............... 3,980,000
-------------
</TABLE>
- ---------------------
24
<PAGE> 26
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 5.7% AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 5.7%
Joint Repurchase Agreement Account (Note 3)
(cost $16,059,000)........................................ $16,059,000 $ 16,059,000
-------------
TOTAL INVESTMENTS --
(cost $307,885,190) 98.2% 279,368,634
Other assets less liabilities -- 1.8 5,211,864
------ -------------
NET ASSETS -- 100.0% $ 284,580,498
====== =============
</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) Variable rate security; rate as of November 30, 1998
(3) Fair valued security; see Note 2
(4) Consists of more than one class of securities traded together
as a unit; generally bonds with attached stocks or warrants
(5) Bond in default
(6) PIK ("Payment-in-Kind") payment made with additional
securities in lieu of cash
See Notes to Financial Statements
---------------------
25
<PAGE> 27
- ---------------------
SUNAMERICA SERIES TRUST
WORLDWIDE HIGH INCOME
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 90.3% AMOUNT VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 3.1%
Housing -- 1.2%
American Standard Co. 7.38% 2008............................ $ 475,000 $ 475,000
Building Materials Corp. America 8.00% 2008*................ 375,000 381,094
Nortek, Inc 8.88% 2008*..................................... 545,000 542,956
Retail -- 1.9%
HMV Media Group PLC 10.88% 2008*............................ 500,000 773,179
K Mart Funding Corp. 8.80% 2010............................. 660,000 692,763
Musicland Group Inc. 9.88% 2008*............................ 600,000 604,500
Samsonite Corp. 10.75% 2008*................................ 60,000 50,400
Southland Corp. 5.00% 2003.................................. 275,000 244,750
-------------
3,764,642
-------------
CONSUMER STAPLES -- 0.3%
Food, Beverage & Tobacco -- 0.3%
Smithfield Foods, Inc. 7.63% 2008*.......................... 360,000 346,950
-------------
ENERGY -- 2.2%
Energy Services -- 0.1%
EES Coke Battery, Inc. 9.38% 2007*.......................... 175,000 168,631
Energy Sources -- 2.1%
Husky Oil Ltd. 8.90% 2008................................... 275,000 277,750
Oil Purchase Co. 7.10% 2002................................. 216,075 202,573
Petroleos Mexicanos 11.14% 2005*(1)......................... 1,270,000 1,193,800
Synder Oil Corp. 8.75% 2007................................. 840,000 848,400
-------------
2,691,154
-------------
FINANCE -- 6.2%
Banks -- 1.8%
Banco Nacional De Desenvolvime 10.30% 2008*(1).............. 2,250,000 1,929,375
Western Financial Savings Bank 8.88% 2007................... 315,000 236,250
Financial Services -- 4.4%
Alps Series 96-1, Class D 12.72% 2006*...................... 319,765 319,777
California FM Lease Trust 8.50% 2017*....................... 474,001 516,957
Cellco Finance NV 15.00% 2005*.............................. 970,000 809,950
Dillon Read Structured Finance Corp. Series 1993 Class A
6.66% 2010................................................ 86,352 81,155
Dillon Read Structured Finance Corp. Series 1994 Class A
7.60% 2007................................................ 254,356 243,304
Dillon Read Structured Finance Corp. Series 1994 Class A
8.38% 2015................................................ 625,000 617,748
Dillon Read Structured Finance Corp. 9.35% 2019............. 200,000 209,458
FMAC Loan Receivables Trust Class C 7.93% 2018*............. 145,832 111,470
Fugi JGB Investment LLC 9.87% 2049*......................... 400,000 284,356
Long Beach Acceptance Auto Grantor Trust Series 1997-1 Class
B 14.22% 2003............................................. 220,141 218,825
Navistar Financial Corp. 9.00% 2002......................... 120,000 123,450
OHA Auto Grantor Trust 11.00% 2004*......................... 599,071 582,038
Pera Financial Services Co. 9.38% 2002...................... 600,000 462,000
SB Treasury Co. 9.40% 2049*(1).............................. 355,000 351,450
</TABLE>
- ---------------------
26
<PAGE> 28
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Securitized Multiple Asset Series 1997-5 Class A1 7.72%
2005*..................................................... $ 501,326 $ 421,749
Unexim International Finance BV 9.88% 2000*................. 220,000 11,000
-------------
7,530,312
-------------
HEALTHCARE -- 3.3%
Health Services -- 3.3%
Columbia/HCA Healthcare Corp. 6.91% 2005.................... 300,000 286,194
Columbia/HCA Healthcare Corp. 7.00% 2007.................... 415,000 392,698
Columbia/HCA Healthcare Corp. 7.69% 2025.................... 1,200,000 1,094,700
Fresenius Medical Care Capital Trust 7.88% 2008............. 435,000 437,175
Tenet Healthcare Corp. 8.63% 2007........................... 1,045,000 1,116,687
Vencor Operating, Inc. 9.88% 2005*.......................... 730,000 649,700
-------------
3,977,154
-------------
INDUSTRIAL & COMMERCIAL -- 2.9%
Aerospace & Military Technology -- 0.3%
Jet Equipment Trust 11.79% 2013*............................ 300,000 392,926
Business Services -- 0.5%
Norcal Waste Systems, Inc. 13.50% 2005(1)................... 615,000 682,650
Machinery -- 0.2%
Axia, Inc 10.75% 2008*...................................... 200,000 202,000
Multi-Industry -- 1.7%
Hutchison Whampoa Ltd 7.45% 2017*........................... 1,020,000 857,667
Reliance Industries Ltd 10.50% 2046......................... 1,550,000 1,185,750
Transportation -- 0.2%
American Commercial Lines LLC 10.25% 2008*.................. 245,000 248,675
-------------
3,569,668
-------------
INFORMATION & ENTERTAINMENT -- 8.7%
Broadcasting & Media -- 6.1%
Adelphia Communications Corp. 8.38% 2008.................... 190,000 192,375
Adelphia Communications Corp. 9.88% 2007.................... 65,000 71,581
Chancellor Media Corp. 8.13% 2007........................... 450,000 450,000
Chancellor Media Corp. 9.00% 2008*.......................... 370,000 392,200
CSC Holdings, Inc. 7.25% 2008............................... 420,000 426,749
CSC Holdings, Inc. 7.88% 2007............................... 535,000 564,837
CSC Holdings, Inc. 9.88% 2006............................... 415,000 440,938
Globalstar LP 11.38% 2004*.................................. 315,000 233,100
Outdoor Systems, Inc. 8.88% 2007............................ 690,000 731,400
RCN Corp. zero coupon 2007*(2).............................. 1,960,000 1,144,150
Rogers Cablesystems Ltd. 10.13% 2012........................ 425,000 467,500
Sinclair Broadcast Group, Inc. 9.00% 2007................... 465,000 470,813
TV Azteca SA 10.13% 2004.................................... 2,100,000 1,858,500
Leisure & Tourism -- 2.6%
Grand Casino, Inc. 10.13% 2003.............................. 680,000 741,200
Hilton Hotels Corp. 7.95% 2007.............................. 610,000 631,417
HMH Properties Inc 7.88% 2005............................... 985,000 983,769
Station Casinos, Inc. 8.88% 2008*........................... 90,000 91,350
Station Casinos, Inc. 9.63% 2003............................ 475,000 492,147
Station Casinos, Inc. 10.13% 2006........................... 125,000 132,500
-------------
10,516,526
-------------
INFORMATION TECHNOLOGY -- 18.0%
Communication Equipment -- 0.2%
Metromedia Fiber Network, Inc. 10.00% 2008*................. 270,000 279,450
</TABLE>
---------------------
27
<PAGE> 29
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Computers & Business Equipment -- 0.5%
Corporate Express, Inc. 9.63% 2008*......................... $ 450,000 $ 429,750
Entex Information Services 12.50% 2006*..................... 240,000 144,000
Electronics -- 0.6%
Samsung Electronics America, Inc. 9.75% 2003*............... 745,000 689,892
Software -- 0.4%
PSINet Inc. 10.00% 2005..................................... 275,000 275,000
Wam-Net, Inc. zero coupon 2005(2)(3)........................ 400,000 204,000
Telecommunications -- 16.3%
AMSC Co., Inc. 12.25% 2008*(3).............................. 415,000 281,163
CIA International de Telecommunicaciones 10.38% 2004*....... 3,680,000 2,631,200
Colt Telecom Group PLC 7.63% 2008........................... 600,000 354,564
Comcast Cellular Holdings, Inc. 9.50% 2007*................. 385,000 415,800
Comtel Brasileira 10.75% 2004............................... 1,890,000 1,634,850
Consorcio Ecuatoriano De Telecommunicaciones 14.00% 2002.... 1,160,000 649,600
Dobson Communications Corp. 11.75% 2007..................... 220,000 228,800
Dolphin Telecom PLC zero coupon 2008*(2).................... 850,000 255,000
Espirit Telecom Group PLC 10.88% 2008*...................... 400,000 400,000
Global Crossing Ltd. 9.63% 2008............................. 620,000 666,500
Hermes Europe Railtel 11.50% 2007........................... 490,000 543,900
Intermedia Communications, Inc. zero coupon 2007(2)......... 1,420,000 1,004,650
IXC Communications, Inc. 9.00% 2008*........................ 815,000 823,150
Lenfest Communications Inc. 7.63% 2008...................... 460,000 466,325
Lenfest Communications, Inc. 8.38% 2005*.................... 740,000 784,400
Level 3 Communications, Inc. 9.13% 2008*.................... 375,000 374,062
Nextel Communications, Inc. zero coupon 2007(2)............. 1,700,000 1,126,250
Nextel Communications, Inc. zero coupon 2004(2)............. 1,005,000 984,900
Nextlink Communications, Inc. zero coupon 2008*(2).......... 940,000 552,250
NTL, Inc. 10.75% 2008....................................... 500,000 474,217
NTL, Inc. zero coupon 2008*(2).............................. 550,000 352,687
Onepoint Communications Corp. 14.50% 2008*(3)............... 370,000 208,680
Primus Telecom Group, Inc. 9.88% 2008*...................... 415,000 379,725
Qwest Communications International, Inc. zero coupon
2008*(2).................................................. 225,000 169,594
Qwest Communications International, Inc. 10.88% 2007........ 200,000 231,000
Qwest Communications International, Inc. zero coupon
2007*(2).................................................. 1,210,000 937,750
Rhythms Netconnections, Inc. zero coupon 2008(2)(3)......... 1,100,000 473,000
Rogers Cantel, Inc. 8.30% 2007.............................. 750,000 750,000
Rogers Communications, Inc. 9.13% 2006...................... 90,000 92,250
RSL Communications PLC 10.00% 2008.......................... 1,650,000 544,667
RSL Communications PLC 12.25% 2006.......................... 18,000 18,900
RSL Communications PLC 9.13% 2008*.......................... 710,000 660,300
RSL Communications PLC 12.00% 2008*......................... 150,000 160,125
Viatel, Inc. zero coupon 2008*(2)(3)........................ 265,000 156,350
-------------
21,808,701
-------------
MATERIALS -- 1.3%
Chemicals -- 0.7%
ISP Holdings, Inc. Class B 9.00% 2003....................... 800,000 842,000
Forest Products -- 0.2%
S.D. Warren Co., Class B 12.00% 2004........................ 265,000 286,200
Metals & Minerals -- 0.4%
Algoma Steel, Inc. 12.38% 2005.............................. 115,000 91,425
Murrin Murrin Holdings Property Ltd. 9.38% 2007............. 360,000 340,200
NSM Steel Inc. 12.25% 2008*(3).............................. 270,000 47,925
-------------
1,607,750
-------------
</TABLE>
- ---------------------
28
<PAGE> 30
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C>
NON-U.S. GOVERNMENT OBLIGATIONS -- 38.5%
Foreign Government -- 38.5%
Colombia Hercules 1991 Integrated Loan 7.13% 2003(1)........ $ 2 $ 1
Federative Republic of Brazil 6.13% 2006(1)................. 1,161,600 859,584
Federative Republic of Brazil 6.19% 2012(4)................. 1,030,000 602,550
Federative Republic of Brazil 9.38% 2008.................... 8,090,000 6,451,775
Government of Russia 11.00% 2018............................ 6,320,000 1,548,400
Jamaica Government Bonds 10.88% 2005*....................... 700,000 602,000
Kingdom of Jordan 6.56% 2023*(1)............................ 833,000 491,470
Republic of Argentina 6.19% 2005(1)......................... 7,614,000 6,615,805
Republic of Argentina 8.75% 2002............................ 1,440,000 1,206,000
Republic of Argentina 11.00% 2006........................... 1,500,000 1,518,750
Republic of Argentina 11.38% 2017........................... 4,300,000 4,321,500
Republic of Bulgaria 2.50% 2012(1).......................... 5,420,000 3,279,100
Republic of Bulgaria 6.56% 2024(1).......................... 450,000 333,562
Republic of Colombia 8.82% 2005............................. 3,180,000 2,957,400
Republic of Ecuador zero coupon 2025........................ 530,000 254,400
Republic of Ecuador 3.25% 2015(4)........................... 1,131,660 554,513
Republic of Ecuador 6.63% 2025.............................. 720,000 412,200
Republic of Panama 4.00% 2016............................... 664,436 503,310
Republic of Panama 8.88% 2027*.............................. 440,000 415,800
Republic of Peru 3.25% 2017*................................ 1,980,000 1,113,750
Republic of Venezuela 6.63% 2007(1)......................... 1,583,340 902,504
Russia Federation Ministry of Finance 3.00% 2003*........... 1,000 93
Russia Interest Notes 6.63% 2015(1)......................... 123 15
United Mexican States 8.63% 2008............................ 4,790,000 4,502,600
United Mexican States 9.88% 2007............................ 2,450,000 2,462,250
United Mexican States 11.38% 2016........................... 4,450,000 4,728,125
-------------
46,637,457
-------------
REAL ESTATE -- 0.4%
Real Estate Companies -- 0.4%
CB Richards Ellis Services, Inc. 8.88% 2006................. 200,000 196,500
Glencore Nickel Property Ltd. 9.00% 2014.................... 380,000 326,800
-------------
523,300
-------------
UTILITIES -- 5.4%
Electric Utilities -- 3.3%
AES Corp. 8.50% 2007*....................................... 490,000 488,775
Empresa Nacional De Electricidad SA 7.75% 2008.............. 840,000 792,204
Korea Electric Power Corp. 6.38% 2003....................... 3,200,000 2,456,832
Niagara Mohawk Power Corp. zero coupon 2010(2).............. 218,000 163,227
Niagara Mohawk Power Corp. 7.75% 2008....................... 126,000 135,584
Electronics -- 0.2%
Samsung Electronics Ltd. 7.45% 2002*........................ 255,000 219,028
Gas & Pipeline Utilities -- 0.2%
Ras Laffan Liquefied Natural Gas Co. 8.29% 2014*............ 265,000 225,136
Telephone -- 1.7%
American Cellular Corp. 10.50% 2008*........................ 410,000 405,900
Flag Ltd. 8.25% 2008........................................ 275,000 279,125
Iridium Capital Corp., Series A 13.00% 2005................. 395,000 347,600
Philippine Long District Telephone Co. 7.85% 2007........... 650,000 555,750
PTC International Finance BV zero coupon 2007*(2)........... 800,000 520,000
-------------
6,589,161
-------------
TOTAL BONDS & NOTES (cost $114,222,092)..................... 109,562,775
-------------
</TABLE>
---------------------
29
<PAGE> 31
<TABLE>
<CAPTION>
PRINCIPAL
LOAN AGREEMENT -- 1.1% AMOUNT VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C>
LOAN AGREEMENT -- 1.1%
Foreign Government -- 1.1%
Gabon Loans 6.69% 2004 (cost $1,826,786).................... $ 2,357,143 $ 1,343,571
-------------
PREFERRED STOCK -- 0.4% SHARES
----------------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 0.3%
Broadcasting & Media -- 0.3%
Paxson Communications Corp. 9.75%*(5)....................... 8 77,600
Paxson Communications Corp. 3.25%........................... 23 216,200
-------------
293,800
-------------
INFORMATION TECHNOLOGY -- 0.1%
Software -- 0.1%
Concentric Network Corp. convertible 13.50%(5).............. 206 174,070
Telecommunications -- 0.0%
IXC Communications, Inc. convertible 12.50%(5).............. 7 7,125
Viatel, Inc., Series A convertible 10.00%................... 133 8,001
-------------
189,196
-------------
TOTAL PREFERRED STOCK (cost $525,132)....................... 482,996
-------------
WARRANTS -- 0.0%+
----------------------------------------------------------------------------------------------
INDUSTRIAL & COMMERCIAL -- 0.0%
Business Services -- 0.0%
Nokornthai Strip Ml Public Ltd. 02/01/08.................... 170,935 1,709
-------------
INFORMATION & ENTERTAINMENT -- 0.0%
Broadcasting & Media -- 0.0%
Paxson Communications Corp. 6/30/2008....................... 256 0
-------------
INFORMATION TECHNOLOGY -- 0.0%
Software -- 0.0%
Concentric Network Corp. 12/15/2007......................... 175 20,125
Wam-Net Inc. 3/01/2005*..................................... 1,200 12
Telecommunications -- 0.0%
American Mobile Satellite Co. 4/01/2027..................... 415 1,951
Onepoint Communications Corp. 6/01/2008..................... 370 370
-------------
22,458
-------------
TOTAL WARRANTS (cost $888).................................. 24,167
-------------
TOTAL INVESTMENT SECURITIES (cost $116,574,898)............. 111,413,509
-------------
PRINCIPAL
SHORT-TERM SECURITIES -- 2.5% AMOUNT
----------------------------------------------------------------------------------------------
FOREIGN SHORT-TERM NOTES -- 1.1%
Export Import Bank Korea 6.50% due 10/06/99................. $ 1,800,000 1,715,040
Jamaica Government Bonds 12.00% due 7/19/99................. 1,000,000 970,000
Mosaic Re Ltd. 10.10% due 7/09/99(1)........................ 300,000 302,100
-------------
2,987,140
-------------
TOTAL SHORT-TERM SECURITIES (cost $3,013,048)............... 2,987,140
-------------
</TABLE>
- ---------------------
30
<PAGE> 32
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 3.8% AMOUNT VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 3.8%
Agreement with State Street Bank & Trust Co., bearing
interest at 4.0% dated 11/30/98 to be repurchased 12/01/98
in the amount of $4,612,512 and collateralized by
$2,870,000 of U.S. Treasury Bonds, bearing interest at
12.50%, due 8/15/14 and having an approximate aggregate
value of $4,704,831
(cost $4,612,000)@........................................ $ 4,612,000 $ 4,612,000
-------------
TOTAL INVESTMENTS --
(cost $124,199,946) 98.1% 119,012,649
Other assets less liabilities-- 1.9 2,276,901
------ -------------
NET ASSETS-- 100.0% $ 121,289,550
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
(1) Variable rate security; rate as of November 30, 1998
(2) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date
(3) Consists of more than one class of securities traded together
as a unit; generally bonds with attached stocks or warrants
(4) A portion of the coupon interest is received in cash and a
portion is capitalized in the principal of the security
(5) PIK ("Payment-in-Kind") payment made with additional
securities in lieu of cash
Allocation of investments as a percentage of net assets by country
as of November 30, 1998
<TABLE>
<S> <C>
United States..................................... 33.0%
Argentina......................................... 13.4%
Mexico............................................ 12.2%
Brazil............................................ 9.5%
South Korea....................................... 3.6%
United Kingdom.................................... 3.0%
Bulgaria.......................................... 2.6%
Colombia.......................................... 2.4%
Ecuador........................................... 1.5%
Netherlands....................................... 1.5%
Canada............................................ 1.4%
Jamaica........................................... 1.3%
Russia............................................ 1.3%
Gabon............................................. 1.1%
India............................................. 1.0%
Peru.............................................. 0.8%
Panama............................................ 0.8%
Cayman Island..................................... 0.7%
Chile............................................. 0.7%
Venezuela......................................... 0.7%
Australia......................................... 0.5%
Philippines....................................... 0.5%
Turkey............................................ 0.4%
Bermuda........................................... 0.2%
Qatar............................................. 0.2%
-----
94.3%
=====
</TABLE>
---------------------
31
<PAGE> 33
@ The security or a portion thereof represent collateral
for the following open futures contracts:
OPEN FUTURES CONTRACTS
------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE AS OF
NUMBER OF EXPIRATION VALUE AT NOVEMBER 30, UNREALIZED
CONTRACTS DESCRIPTION DATE TRADE DATE 1998 DEPRECIATION
--------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
8 Short Long Gilt............................. March 1999 $1,530,435 $1,547,735 $(17,300)
=========
</TABLE>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DEM 745,000 USD 443,788 12/22/98 $ 4,082
DEM 350,000 USD 206,885 12/22/98 121
GBP 250,000 USD 423,250 12/02/98 10,918
GBP 430,000 USD 731,043 12/02/98 21,833
--------
$36,954
--------
GROSS UNREALIZED
DEPRECIATION
--------------------------------------------------------------------------
DEM 535,000 USD 314,142 01/25/99 (2,079)
--------
Net Unrealized Appreciation.............. $34,875
========
</TABLE>
DEM -- Deutsche Mark
GBP -- Pound Sterling
USD -- United States Dollar
See Notes to Financial Statements
- ---------------------
32
<PAGE> 34
- ---------------------
SUNAMERICA SERIES TRUST
SUNAMERICA BALANCED
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
COMMON STOCK -- 66.0% SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 7.5%
Apparel & Textiles -- 1.1%
Gap, Inc. .................................................. 23,000 $ 1,691,938
Automotive -- 2.7%
Daimler Chrysler AG......................................... 15,000 1,375,312
Ford Motor Co. ............................................. 30,000 1,657,500
General Motors Corp. ....................................... 13,000 910,000
Housing -- 1.2%
Champion Enterprises, Inc.+................................. 15,000 334,687
Home Depot, Inc. ........................................... 30,000 1,492,500
Retail -- 2.5%
CVS Corp. .................................................. 26,000 1,283,750
Dayton Hudson Corp. ........................................ 20,000 900,000
Wal-Mart Stores, Inc. ...................................... 20,000 1,506,250
-------------
11,151,937
-------------
CONSUMER STAPLES -- 1.7%
Food, Beverage & Tobacco -- 1.7%
Philip Morris Cos., Inc. ................................... 45,700 2,556,344
-------------
ENERGY -- 5.3%
Energy Services -- 0.9%
Halliburton Co. ............................................ 20,000 587,500
Schlumberger Ltd. .......................................... 15,000 670,312
Energy Sources -- 4.4%
Burlington Resources, Inc. ................................. 25,000 890,625
Chevron Corp. .............................................. 15,000 1,254,375
Conoco, Inc., Class A+...................................... 20,000 473,750
Mobil Corp. ................................................ 20,000 1,723,750
Royal Dutch Petroleum Co. .................................. 25,800 1,212,600
Texaco, Inc. ............................................... 18,000 1,036,125
-------------
7,849,037
-------------
FINANCE -- 15.6%
Banks -- 6.6%
Bank of New York Co., Inc. ................................. 30,000 1,027,500
BankAmerica Corp. .......................................... 20,000 1,303,750
Chase Manhattan Corp. ...................................... 25,000 1,585,937
First Union Corp. .......................................... 20,000 1,215,000
Fleet Financial Group, Inc. ................................ 30,000 1,250,625
Mellon Bank Corp. .......................................... 15,000 944,063
Summit Bancorp.............................................. 60,000 2,508,750
Financial Services -- 8.5%
American Express Co. ....................................... 20,000 2,001,250
American General Corp. ..................................... 15,000 1,056,563
Associates First Capital Corp., Class A..................... 15,000 1,168,125
Capital One Financial Corp. ................................ 15,000 1,650,000
</TABLE>
---------------------
33
<PAGE> 35
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Citigroup, Inc. ............................................ 17,500 $ 878,281
Federal Home Loan Mortgage Corp. ........................... 15,000 907,500
Merrill Lynch & Co., Inc. .................................. 20,000 1,500,000
Morgan Stanley, Dean Witter & Co. .......................... 15,000 1,046,250
PaineWebber Group, Inc. .................................... 10,000 408,750
Providian Financial Corp. .................................. 17,000 1,560,812
ReliaStar Financial Corp. .................................. 9,300 437,100
Insurance -- 0.5%
Allstate Corp. ............................................. 20,000 815,000
-------------
23,265,256
-------------
HEALTHCARE -- 8.2%
Drugs -- 6.5%
Amgen, Inc.+................................................ 10,000 752,500
Biogen, Inc.+............................................... 15,000 1,138,125
Bristol-Myers Squibb Co. ................................... 5,000 612,813
Lilly (Eli) & Co. .......................................... 8,000 717,500
Merck & Co., Inc. .......................................... 15,000 2,323,125
Pfizer, Inc. ............................................... 15,000 1,674,375
Schering-Plough Corp. ...................................... 10,000 1,063,750
Warner-Lambert Co. ......................................... 20,000 1,510,000
Medical Products -- 1.7%
Becton Dickinson & Co. ..................................... 15,000 637,500
Genzyme Corp.+.............................................. 15,000 630,937
Genzyme Molecular Oncology+................................. 1,621 5,673
Johnson & Johnson Co. ...................................... 15,200 1,235,000
-------------
12,301,298
-------------
INDUSTRIAL & COMMERCIAL -- 3.4%
Aerospace & Military Technology -- 0.9%
United Technologies Corp. .................................. 13,000 1,393,438
Electrical Equipment -- 2.1%
General Electric Co. ....................................... 35,000 3,167,500
Transportation -- 0.4%
Burlington Northern Santa Fe Corp. ......................... 15,000 510,000
-------------
5,070,938
-------------
INFORMATION & ENTERTAINMENT -- 2.3%
Broadcasting & Media -- 1.6%
CBS Corp. .................................................. 30,000 894,375
Time Warner, Inc. .......................................... 15,000 1,586,250
Entertainment Products -- 0.3%
Oakley, Inc.+............................................... 47,000 458,250
Leisure & Tourism -- 0.4%
Carnival Corp., Class A..................................... 16,000 552,000
-------------
3,490,875
-------------
INFORMATION TECHNOLOGY -- 16.2%
Computers & Business Equipment -- 7.9%
Cisco Systems, Inc.+........................................ 30,000 2,261,250
Dell Computer Corp.+........................................ 35,000 2,128,437
EMC Corp.+.................................................. 25,000 1,812,500
Hewlett-Packard Co. ........................................ 5,000 313,750
International Business Machines Corp. ...................... 22,950 3,786,750
Sun Microsystems, Inc.+..................................... 20,000 1,481,250
</TABLE>
- ---------------------
34
<PAGE> 36
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Electronics -- 3.9%
Intel Corp. ................................................ 25,000 $ 2,690,625
Motorola, Inc. ............................................. 20,000 1,240,000
Texas Instruments, Inc. .................................... 25,000 1,909,375
Software -- 2.4%
Microsoft Corp.+............................................ 30,000 3,660,000
Telecommunications -- 2.0%
Comcast Corp., Class A...................................... 30,000 1,455,000
Lucent Technologies, Inc. .................................. 17,000 1,463,063
-------------
24,202,000
-------------
MATERIALS -- 1.6%
Chemicals -- 0.6%
du Pont (E.I.) de Nemours & Co. ............................ 15,000 881,250
Forest Products -- 0.5%
Weyerhaeuser Co. ........................................... 15,000 751,875
Metals & Minerals -- 0.5%
Aluminum Co. of America..................................... 10,000 741,250
-------------
2,374,375
-------------
UTILITIES -- 4.2%
Electric Utilities -- 0.4%
PECO Energy Co. ............................................ 15,000 601,875
Gas & Pipeline Utilities -- 0.7%
Enron Corp. ................................................ 20,000 1,051,250
Telephone -- 3.1%
AT&T Corp. ................................................. 40,000 2,492,500
MCI WorldCom, Inc.+......................................... 35,000 2,065,000
-------------
6,210,625
-------------
TOTAL COMMON STOCK (cost $85,385,780)....................... 98,472,685
-------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 26.6% AMOUNT
----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 0.6%
Automotive -- 0.6%
Chrysler Corp. 7.45% 2027................................... $ 750,000 871,290
-------------
FINANCE -- 2.4%
Financial Services -- 2.4%
CS First Boston Mortgage Securities Corp. 6.48% 2008........ 2,500,000 2,554,883
Morgan Stanley, Dean Witter & Co. 6.88% 2007................ 1,000,000 1,054,150
-------------
3,609,033
-------------
INFORMATION TECHNOLOGY -- 0.7%
Electronics -- 0.7%
Texas Instruments, Inc. 6.13% 2006.......................... 1,000,000 1,022,730
-------------
U.S. GOVERNMENT & AGENCIES -- 22.9%
Federal National Mortgage Association -- 2.9%
5.75% due 2003.............................................. 3,385,000 3,487,092
5.75% due 2008.............................................. 750,000 772,380
</TABLE>
---------------------
35
<PAGE> 37
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT & AGENCIES (continued)
Overseas Private Investment Corp. -- 3.1%
6.99% due 2009.............................................. $4,435,000 $ 4,697,241
Small Business Administration -- 1.4%
6.30% due 2018.............................................. 2,000,000 2,026,406
U.S. Treasury Bonds & Notes -- 15.5%
5.25% due 2028.............................................. 3,000,000 3,083,430
5.50% due 2028.............................................. 1,235,000 1,305,815
4.00% due 2000.............................................. 2,250,000 2,227,140
4.75% due 2008.............................................. 3,500,000 3,505,460
5.63% due 2008.............................................. 5,000,000 5,318,750
5.75% due 2000.............................................. 5,901,000 6,024,567
6.13% due 2007.............................................. 600,000 654,564
6.38% due 2000.............................................. 1,000,000 1,024,060
-------------
34,126,905
-------------
TOTAL BONDS & NOTES (cost $39,071,483)...................... 39,629,958
-------------
TOTAL INVESTMENT SECURITIES (cost $124,457,263)............. 138,102,643
-------------
REPURCHASE AGREEMENT -- 6.4%
----------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 6.4%
Joint Repurchase Agreement Account (Note 3)
(cost $9,599,000)......................................... 9,599,000 9,599,000
-------------
TOTAL INVESTMENTS --
(cost $134,056,263) 99.0% 147,701,643
Other assets less liabilities -- 1.0 1,539,964
------ -------------
NET ASSETS -- 100.0% $149,241,607
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
See Notes to Financial Statements
- ---------------------
36
<PAGE> 38
- ---------------------
SUNAMERICA SERIES TRUST
BALANCED/PHOENIX INVESTMENT
COUNSEL PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
COMMON STOCK -- 57.9% SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 6.4%
Housing -- 1.0%
Home Depot, Inc. ........................................... 26,100 $ 1,298,475
Retail -- 5.4%
Borders Group, Inc.+........................................ 16,300 395,275
CVS Corp. .................................................. 30,700 1,515,813
Fred Meyer, Inc.+........................................... 21,890 1,113,654
Rite Aid Corp. ............................................. 34,600 1,604,575
Safeway, Inc.+.............................................. 36,500 1,927,656
Wal-Mart Stores, Inc. ...................................... 8,100 610,031
-------------
8,465,479
-------------
CONSUMER STAPLES -- 2.9%
Food, Beverage & Tobacco -- 1.6%
Anheuser-Busch Cos., Inc. .................................. 13,100 794,187
PepsiCo, Inc. .............................................. 32,000 1,238,000
Household Products -- 1.3%
Clorox Co. ................................................. 2,800 310,975
Colgate-Palmolive Co. ...................................... 4,300 368,188
Procter & Gamble Co. ....................................... 12,200 1,069,025
-------------
3,780,375
-------------
ENERGY -- 3.2%
Energy Services -- 0.6%
Halliburton Co. ............................................ 11,400 334,875
Schlumberger Ltd. .......................................... 7,100 317,281
Transocean Offshore, Inc. .................................. 5,600 138,250
Energy Sources -- 2.6%
Amoco Corp. ................................................ 33,100 1,950,831
USX-Marathon Group, Inc. ................................... 49,100 1,393,213
-------------
4,134,450
-------------
FINANCE -- 8.4%
Banks -- 2.8%
Bank One Corp. ............................................. 29,170 1,496,785
BankAmerica Corp. .......................................... 18,526 1,207,664
Mellon Bank Corp. .......................................... 8,000 503,500
U.S. Bancorp................................................ 12,000 441,750
Financial Services -- 4.5%
Capital One Financial Corp. ................................ 9,500 1,045,000
Citigroup, Inc. ............................................ 20,800 1,043,900
Federal Home Loan Mortgage Corp. ........................... 29,800 1,802,900
Morgan Stanley, Dean Witter & Co. .......................... 14,300 997,425
ReliaStar Financial Corp. .................................. 7,000 329,000
Wells Fargo Co. ............................................ 19,000 684,000
</TABLE>
---------------------
37
<PAGE> 39
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance -- 1.1%
American International Group, Inc. ......................... 11,150 $ 1,048,100
UNUM Corp. ................................................. 8,900 479,488
-------------
11,079,512
-------------
HEALTHCARE -- 10.6%
Drugs -- 8.3%
Bristol-Myers Squibb Co. ................................... 17,600 2,157,100
Cardinal Health, Inc., Class A.............................. 14,850 1,019,081
Elan Corp. PLC ADR+......................................... 8,100 551,813
Pfizer, Inc. ............................................... 21,300 2,377,612
Schering-Plough Corp. ...................................... 17,400 1,850,925
Warner-Lambert Co. ......................................... 28,200 2,129,100
Watson Pharmaceuticals, Inc.+............................... 14,200 765,025
Medical Products -- 2.3%
Baxter International, Inc. ................................. 16,400 1,042,425
Becton Dickinson & Co. ..................................... 8,400 357,000
Genzyme Corp.+.............................................. 8,400 353,325
Genzyme Molecular Oncology+................................. 2 6
Medtronic, Inc. ............................................ 18,800 1,272,525
-------------
13,875,937
-------------
INDUSTRIAL & COMMERCIAL -- 3.9%
Business Services -- 1.2%
ServiceMaster Co. .......................................... 16,400 352,600
Waste Management, Inc. ..................................... 27,900 1,196,213
Electrical Equipment -- 1.5%
General Electric Co. ....................................... 22,000 1,991,000
Multi-Industry -- 1.2%
Tyco International Ltd. .................................... 24,200 1,592,662
-------------
5,132,475
-------------
INFORMATION & ENTERTAINMENT -- 0.9%
Broadcasting & Media -- 0.9%
CBS Corp. .................................................. 13,200 393,525
Chancellor Media Corp.+..................................... 10,700 403,256
Clear Channel Communications, Inc.+......................... 8,200 383,350
-------------
1,180,131
-------------
INFORMATION TECHNOLOGY -- 18.7%
Communication Equipment -- 0.4%
Tellabs, Inc.+.............................................. 9,800 529,813
Computers & Business Equipment -- 4.7%
Cisco Systems, Inc.+........................................ 14,500 1,092,938
EMC Corp.+.................................................. 20,700 1,500,750
International Business Machines Corp. ...................... 16,600 2,739,000
Staples, Inc.+.............................................. 24,700 862,956
Electronics -- 3.0%
Intel Corp. ................................................ 30,000 3,228,750
Micron Technology, Inc.+.................................... 8,900 367,681
Tandy Corp. ................................................ 7,300 328,956
Software -- 7.4%
Amazon.com, Inc.+........................................... 1,200 230,400
America Online, Inc.+....................................... 12,400 1,085,775
BMC Software, Inc.+......................................... 22,500 1,148,906
Compuware Corp.+............................................ 27,300 1,699,425
</TABLE>
- ---------------------
38
<PAGE> 40
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Software (continued)
HBO & Co. .................................................. 40,200 $ 1,002,488
J.D. Edwards & Co.+......................................... 10,600 368,350
Microsoft Corp.+............................................ 23,900 2,915,800
Oracle Corp.++.............................................. 22,400 767,200
Sterling Commerce, Inc.+.................................... 11,100 402,375
Yahoo!, Inc.+............................................... 1,000 192,000
Telecommunications -- 3.2%
AirTouch Communications, Inc.+.............................. 38,700 2,213,156
Liberty Media Group, Series A+.............................. 19,450 784,078
Tele-Communications, Inc., Class A+......................... 27,700 1,170,325
-------------
24,631,122
-------------
UTILITIES -- 2.9%
Telephone -- 2.9%
AT&T Corp. ................................................. 16,800 1,046,850
BellSouth Corp. ............................................ 10,200 889,950
MCI WorldCom, Inc.+......................................... 21,065 1,242,835
SBC Communications, Inc. ................................... 14,300 685,506
-------------
3,865,141
-------------
TOTAL COMMON STOCK (cost $61,391,915)....................... 76,144,622
-------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 32.6% AMOUNT
-----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 0.3%
Retail -- 0.3%
Fred Meyer, Inc. 7.45% 2008................................. $ 325,000 346,041
-------------
FINANCE -- 5.0%
Banks -- 0.4%
SB Treasury Co. LLC 9.40% 2049*(1).......................... 390,000 386,100
Vnesheconombank USSR 6.63% 2015*(1)......................... 594,282 72,800
Financial Services -- 4.6%
Aesop Funding II LLC 6.40% 2003*............................ 600,000 615,360
Capita Equipment Receivables Corp Trust 6.45% 2002.......... 360,000 363,937
Copelco Capital Funding Corp. 5.78% 2001.................... 750,000 753,516
CS First Boston Mortgage Securities Corp. 6.72% 2007........ 1,000,000 1,026,250
CS First Boston Mortgage Securities Corp. 7.18% 2027(2)..... 300,000 299,625
First Union-Lehman Brothers Commercial Mortgage Trust 7.43%
2029...................................................... 140,000 150,227
Fleetwood Credit Grantor Trust 6.90% 2012................... 52,826 54,070
GE Capital Mortgage Services, Inc. 7.25% 2026............... 292,384 296,678
Green Tree Financial Corp. 7.60% 2027....................... 125,000 127,335
IBJ Preferred Capital Co. LLC, 8.79% 2049*(1)............... 390,000 340,150
Nationslink Funding Corp. 7.69% 2005........................ 250,000 263,105
Premier Auto Trust 5.70% 2002............................... 250,000 250,390
Residential Asset Securitization Trust 8.00% 2026........... 54,177 54,397
Residential Funding Mortgage Securities 7.25% 2026.......... 290,935 293,792
Structured Asset Securities Corp. 6.95% 2007................ 140,000 142,887
Structured Asset Securities Corp. 7.00% 2026................ 300,000 310,134
Triangle Funding Ltd. 7.16% 2004*(2)........................ 750,000 743,672
-------------
6,544,425
-------------
HEALTHCARE -- 0.7%
Health Services -- 0.4%
Tenet Healthcare Corp. 8.13% 2008*.......................... 500,000 520,810
</TABLE>
---------------------
39
<PAGE> 41
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE (continued)
Medical Products -- 0.3%
Boston Scientific Corp. 6.63% 2005.......................... $ 425,000 $ 414,519
-------------
935,329
-------------
INDUSTRIAL & COMMERCIAL -- 0.3%
Machinery -- 0.1%
Cummins Engine, Inc. 6.45% 2005............................. 155,000 151,024
Multi-Industry -- 0.2%
Tyco International Group SA 6.38% 2005...................... 230,000 231,325
Transportation -- 0.0%
Compania Sud Americana de Vapores SA 7.38% 2003............. 50,000 48,331
-------------
430,680
-------------
INFORMATION TECHNOLOGY -- 0.3%
Software -- 0.2%
Computer Associates International, Inc., Class B 6.38%
2005...................................................... 215,000 211,302
Telecommunications -- 0.1%
Compania de Radiocommunicaciones Moviles SA 9.25% 2008*..... 150,000 138,750
-------------
350,052
-------------
MATERIALS -- 0.3%
Forest Products -- 0.3%
Buckeye Cellulose Corp. 8.50% 2005.......................... 300,000 309,000
Buckeye Cellulose Corp. 9.25% 2008.......................... 100,000 104,500
-------------
413,500
-------------
MUNICIPAL BONDS -- 5.6%
Municipal Bonds -- 5.6%
California State Department Water Resources 5.00% 2029...... 190,000 190,296
Dallas Fort Worth Texas International 6.50% 2009............ 400,000 418,908
Florida State Department of Transportation 5.00% 2027....... 230,000 229,018
Fresno County California Pension Obligation 6.21% 2006...... 400,000 411,276
Houston Texas Water & Sewer Systems Revenue 5.00% 2025...... 290,000 286,192
Illinois Educational Facilities Authority Revenues 7.84%
2024...................................................... 615,000 691,740
Kern County California Pension Obligation 7.26% 2014........ 220,000 241,516
Long Beach California Pension Obligation 6.87% 2006......... 30,000 31,912
Los Angeles County Public Works Financing Authority 5.13%
2029...................................................... 290,000 293,164
Massachusetts State Port Authority Revenue 6.05% 2002....... 195,000 197,174
Massachusetts State Water Resources Authority, 5.00% 2024... 230,000 228,013
Metropolitan Transportation Authority New York 5.00% 2023... 165,000 164,069
Miami Beach Florida Special Obligation 8.60% 2021........... 430,000 509,851
New York State Dormitory Authority Revenues 6.90% 2003...... 400,000 419,200
New York State General Obligation 6.40% 2008................ 610,000 631,984
Newport News 7.05% 2025..................................... 250,000 275,950
Orange County California Pension Obligation 7.62% 2008...... 160,000 179,920
Pittsburgh Pennsylvania General Obligation 6.50% 2017....... 500,000 511,730
Pittsburgh Pennsylvania Water & Sewer Systems Revenue 5.05%
2025...................................................... 165,000 163,791
San Bernardino County California Financing Authority 6.87%
2008...................................................... 15,000 16,325
San Bernardino County California Financing Authority 6.94%
2009...................................................... 35,000 38,370
Sonoma County California Pension Obligation 6.63% 2013...... 215,000 226,180
Texas State Taxable Veterans General Obligation 6.10%
2003...................................................... 500,000 514,075
University Miami Florida Exchange Revenue 7.65% 2020........ 80,000 83,482
Ventura County California Pension 6.54% 2005................ 30,000 31,249
Washington State General Obligation 5.00% 2022.............. 290,000 286,036
-------------
7,271,421
-------------
</TABLE>
- ---------------------
40
<PAGE> 42
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
NON-U.S. GOVERNMENT OBLIGATIONS -- 4.6%
Foreign Government -- 4.6%
Brazil New Money Bond 6.19% 2009(1)......................... $ 215,000 $ 140,691
Federative Republic of Brazil 6.69% 2009(1)................. 755,000 494,053
Republic of Argentina 6.19% 2005(1)......................... 625,100 543,149
Republic of Argentina 9.75% 2027............................ 600,000 537,150
Republic of Colombia 7.25% 2004............................. 325,000 279,500
Republic of Colombia 7.63% 2007............................. 300,000 246,750
Republic of Ecuador 3.25% 2015(1)........................... 475,297 232,895
Republic of Korea 8.88% 2008................................ 645,000 645,484
Republic of Peru 4.00% 2017(1).............................. 455,000 284,944
Republic of Poland 3.75% 2014(1)............................ 1,800,000 1,686,375
United Mexican States 11.50% 2026(2)........................ 860,000 940,625
-------------
6,031,616
-------------
U.S. GOVERNMENT & AGENCIES -- 15.4%
U.S. Government & Agencies -- 15.4%
Government National Mortgage Association 6.50% 2023-2028.... 4,332,051 4,377,923
United States Treasury Notes 5.25% 2003..................... 1,392,000 1,432,243
United States Treasury Notes 5.38% 2000..................... 2,325,000 2,342,809
United States Treasury Notes 5.50% 2000-2003................ 6,115,000 6,266,376
United States Treasury Notes 5.63% 2008..................... 1,544,000 1,642,430
United States Treasury Notes 6.00% 2000..................... 2,500,000 2,555,075
United States Treasury Notes 6.75% 2000..................... 1,200,000 1,234,128
United States Treasury Notes 6.88% 2000..................... 450,000 462,654
-------------
20,313,638
-------------
UTILITIES -- 0.1%
Telephone -- 0.1%
Telefonica de Argentina SA 9.13% 2008*...................... 110,000 103,675
-------------
TOTAL BONDS & NOTES (cost $42,501,346)...................... 42,740,377
-------------
<CAPTION>
LOAN AGREEMENT -- 0.0%
-----------------------------------------------------------------------------------------
<S> <C> <C>
LOAN AGREEMENT -- 0.0%
Foreign Government -- 0.0%
Russia Principal Loans 3.31% 2020(1) (cost $202,313)........ 325,000 23,156
-------------
<CAPTION>
RIGHTS -- 0.0%+ RIGHTS
-----------------------------------------------------------------------------------------
<S> <C> <C>
NON-U.S. GOVERNMENT OBLIGATIONS -- 0.0%
Foreign Government -- 0.0%
United Mexican States 6/30/03............................... 461,000 0
-------------
<CAPTION>
WARRANTS -- 0.0%+ WARRANTS
-----------------------------------------------------------------------------------------
<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 $104,095,574)............. 118,908,155
-------------
</TABLE>
---------------------
41
<PAGE> 43
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 8.9% AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 7.4%
Lexington Parker Capital Corp. Cp 5.03% due 12/01/98........ $ 3,310,000 $ 3,310,000
Receivables Capital Corp. 5.36% due 12/01/98................ 3,245,000 3,245,000
Student Loan Marketing Discount Note 4.87% due 12/02/98..... 3,220,000 3,219,564
-------------
9,774,564
-------------
FEDERAL AGENCY OBLIGATIONS -- 1.5%
Federal Home Loan Bank Discount Notes 4.72% due 12/02/98.... 2,000,000 1,999,738
-------------
TOTAL SHORT-TERM SECURITIES (cost $11,774,302).............. 11,774,302
-------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS --
(cost $115,869,876) 99.4% 130,682,457
Other assets less liabilities -- 0.6 757,283
------ -------------
NET ASSETS -- 100.0% $ 131,439,740
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
ADR -- American Depository Receipt
(1) Variable rate security; rate as of November 30, 1998
(2) Fair valued security; see Note 2
See Notes to Financial Statements
- ---------------------
42
<PAGE> 44
- ---------------------
SUNAMERICA SERIES TRUST
ASSET ALLOCATION PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
COMMON STOCK -- 52.9% SHARES VALUE
--------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 8.6%
Apparel & Textiles -- 0.5%
Fruit of The Loom, Inc.+.................................... 267,700 $ 3,948,575
Automotive -- 6.5%
General Motors Corp. ....................................... 182,100 12,747,000
General Motors Corp., Class H............................... 146,300 5,559,400
Goodyear Tire & Rubber Co. ................................. 118,900 6,747,575
Lear Corp.+................................................. 151,400 5,847,825
LucasVarity PLC ADR......................................... 162,200 5,677,000
Magna International, Inc., Class A.......................... 100,000 6,656,250
Volvo AB ADR................................................ 137,700 3,184,313
Retail -- 1.6%
Federated Department Stores, Inc.+.......................... 59,600 2,484,575
Sears, Roebuck & Co. ....................................... 182,700 8,666,831
-------------
61,519,344
-------------
CONSUMER STAPLES -- 2.5%
Food, Beverage & Tobacco -- 2.5%
Archer-Daniels-Midland Co. ................................. 129,400 2,377,725
Philip Morris Cos., Inc. ................................... 191,400 10,706,438
RJR Nabisco Holdings Corp. ................................. 155,700 4,486,106
-------------
17,570,269
-------------
ENERGY -- 6.2%
Energy Services -- 2.5%
Baker Hughes, Inc. ......................................... 221,100 4,048,894
Tosco Corp. ................................................ 332,800 8,694,400
Transocean Offshore, Inc. .................................. 209,200 5,164,625
Energy Sources -- 3.7%
Atlantic Richfield Co. ..................................... 65,200 4,335,800
Elf Aquitaine SA ADR........................................ 186,500 11,609,625
Occidental Petroleum Corp. ................................. 146,300 2,962,575
Texaco, Inc. ............................................... 131,500 7,569,468
-------------
44,385,387
-------------
FINANCE -- 13.1%
Banks -- 3.8%
Bank One Corp. ............................................. 85,000 4,361,563
BankAmerica Corp. .......................................... 112,200 7,314,037
Chase Manhattan Corp. ...................................... 84,100 5,335,094
First Union Corp. .......................................... 161,100 9,786,825
Financial Services -- 1.7%
CIT Group, Inc. Class A .................................... 160,700 4,509,644
Dun & Bradstreet Corp. ..................................... 161,100 4,863,206
Torchmark, Inc. ............................................ 69,800 2,652,400
Insurance -- 7.6%
Aetna, Inc. ................................................ 181,000 13,993,562
Allstate Corp. ............................................. 172,200 7,017,150
CIGNA Corp. ................................................ 131,100 10,201,219
</TABLE>
---------------------
43
<PAGE> 45
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
--------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance (continued)
Hartford Financial Services Group, Inc. .................... 141,300 $ 7,797,994
Loews Corp. ................................................ 143,700 14,370,000
Provident Cos., Inc. ....................................... 26,200 1,007,062
-------------
93,209,756
-------------
HEALTHCARE -- 1.6%
Health Services -- 1.6%
Tenet Healthcare Corp.+..................................... 389,100 11,502,769
-------------
INDUSTRIAL & COMMERCIAL -- 6.6%
Aerospace & Military Technology -- 3.1%
Lockheed Martin Corp. ...................................... 104,900 10,883,375
Raytheon Co., Class A....................................... 205,200 11,221,875
Business Services -- 2.3%
Browning-Ferris Industries, Inc. ........................... 175,600 5,180,200
First Data Corp. ........................................... 285,200 7,611,275
Fluor Corp. ................................................ 35,400 1,515,562
Waste Management, Inc. ..................................... 43,600 1,869,350
Multi-Industry -- 0.2%
Corning, Inc. .............................................. 46,000 1,845,750
Transportation -- 1.0%
Canadian Pacific Ltd. ...................................... 254,400 5,612,700
FDX Corp.+.................................................. 20,900 1,355,888
-------------
47,095,975
-------------
INFORMATION & ENTERTAINMENT -- 4.9%
Broadcasting & Media -- 0.7%
New York Times Co., Class A................................. 171,400 5,324,112
Entertainment Products -- 1.2%
Hasbro, Inc. ............................................... 163,500 5,732,719
Toys "R" Us, Inc.+.......................................... 128,300 2,533,925
Leisure & Tourism -- 3.0%
Hilton Hotels Corp. ........................................ 351,700 7,649,475
Mirage Resorts, Inc.+....................................... 391,900 5,829,513
Tricon Global Restaurants, Inc.+............................ 176,200 8,028,112
-------------
35,097,856
-------------
INFORMATION TECHNOLOGY -- 1.2%
Electronics -- 0.4%
Philips Electronics NV...................................... 41,400 2,621,138
Telecommunications -- 0.8%
BCE, Inc. .................................................. 156,100 5,551,306
-------------
8,172,444
-------------
MATERIALS -- 2.2%
Forest Products -- 1.5%
Georgia-Pacific Corp.+...................................... 103,000 5,845,250
Georgia-Pacific Timber Group+............................... 208,600 4,797,800
Metals & Minerals -- 0.7%
Crown, Cork & Seal Co., Inc. ............................... 143,100 4,829,625
-------------
15,472,675
-------------
</TABLE>
- ---------------------
44
<PAGE> 46
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
--------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 6.0%
Electric Utilities -- 4.5%
Entergy Corp. .............................................. 360,600 $ 10,570,087
Northeast Utilities+........................................ 291,400 4,589,550
PacifiCorp.................................................. 254,300 4,768,125
Unicom Corp. ............................................... 329,300 12,410,494
Telephone -- 1.5%
AT&T Corp. ................................................. 78,400 4,885,300
GTE Corp. .................................................. 94,300 5,846,600
-------------
43,070,156
-------------
TOTAL COMMON STOCK (cost $366,770,158)...................... 377,096,631
-------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 30.1% AMOUNT
--------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 0.7%
Automotive -- 0.1%
Chrysler Corp. 7.45% 2097................................... $ 190,000 216,841
Pep Boys Manny, Moe & Jack 7.00% 2005....................... 500,000 494,125
Housing -- 0.3%
Owens Corning 7.50% 2005.................................... 1,555,000 1,605,973
U.S. Home Corp. 7.95% 2001.................................. 405,000 413,100
USI American Holdings, Inc. 7.25% 2006...................... 240,000 251,398
Retail -- 0.3%
Kroger Co. 12.95% 2009(1)................................... 1,950,000 2,032,875
-------------
5,014,312
-------------
CONSUMER STAPLES -- 0.5%
Food, Beverage & Tobacco -- 0.5%
Keebler Corp. 10.75% 2006................................... 500,000 546,250
Philip Morris Cos, Inc. 6.95% 2006.......................... 465,000 490,435
Philip Morris Cos, Inc. 7.00% 2005.......................... 800,000 844,448
RJR Nabisco, Inc. 8.00% 2001................................ 860,000 862,374
Safeway, Inc. 6.05% 2003.................................... 530,000 530,758
-------------
3,274,265
-------------
ENERGY -- 0.5%
Energy Services -- 0.1%
Edison Mission Energy Funding Corp. 6.77% 2003*............. 207,427 213,135
National Power Corp. 7.63% 2000............................. 620,000 590,163
Oryx Energy Co. 10.00% 2001................................. 100,000 108,021
YPF Sociedad Anonima 7.50% 2002............................. 68,535 68,301
Energy Sources -- 0.4%
Gulf Canada Resources Ltd. 9.25% 2004....................... 600,000 616,218
Petroleos Mexicanos 10.26% 2005*(2)......................... 1,540,000 1,451,450
Petroleos Mexicanos 10.26% 2005(1)(2)....................... 330,000 311,850
Triton Energy Ltd. 8.75% 2002............................... 495,000 491,288
-------------
3,850,426
-------------
FINANCE -- 8.1%
Banks -- 1.3%
Auburn Hills Trust 12.00% 2020.............................. 170,000 285,224
Banco Nacional de Obras y Servicios Publicos SNC 9.63%
2003...................................................... 110,000 111,100
BankAmerica Corp. 9.75% 2000................................ 400,000 425,520
Capital One Bank 6.15% 2001................................. 500,000 500,800
Capital One Bank 6.39% 2001................................. 1,000,000 995,800
Capital One Bank 6.40% 2003................................. 300,000 300,951
</TABLE>
---------------------
45
<PAGE> 47
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
--------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Banks (continued)
Capital One Bank 6.66% 2000................................. $ 150,000 $ 152,298
Capital One Bank 6.88% 2000................................. 850,000 852,219
Capital One Bank 7.15% 2006................................. 1,225,000 1,237,176
Continental Bank NA 12.50% 2001............................. 450,000 519,075
Korea Development Bank 6.50% 2002........................... 340,000 297,483
Korea Development Bank 7.13% 2001........................... 340,000 311,688
Long Island Savings Bank 6.20% 2001......................... 1,500,000 1,497,285
Riggs National Corp. 9.65% 2009............................. 710,000 803,756
Security Pacific Corp. 11.50% 2000.......................... 600,000 666,798
Financial Services -- 6.8%
Americredit Automobile Recreation Trust 6.24% 2003(1)....... 2,600,000 2,626,000
Asset Securitization Corp. 7.49% 2029(1).................... 1,450,000 1,582,086
Autoflow 1996 A Grantor Trust 7.48% 2002*(1)................ 596,647 599,444
Case Equipment Loan Trust 7.30% 2002........................ 81,947 82,265
Chase Commercial Mortgage Securities Corp. 6.56% 2030(1).... 2,500,000 2,601,562
Chase Commercial Mortgage Securities Corp. 7.37% 2007....... 2,500,000 2,694,125
Chemical Master Credit Card Trust 5.98% 2008................ 1,610,000 1,613,011
Chevy Chase Auto Receivables 5.80% 2002..................... 69,282 69,239
Citibank Credit Card Master Trust I 5.80% 2005.............. 4,500,000 4,539,375
Countrywide Capital I 8.05% 2027............................ 1,300,000 1,382,186
Countrywide Funding Corp. 6.45% 2003........................ 300,000 305,268
Countrywide Funding Corp. 6.97% 2003........................ 1,000,000 1,036,990
Credit Suisse First Boston 6.55% 2035(1).................... 2,000,000 2,024,375
Discover Card Master Trust I 5.63% 2004(2).................. 300,000 300,186
Discover Card Master Trust I 5.83% 2013(2).................. 700,000 681,184
EQCC Home Equity Loan Trust 5.45% 2028(1)(3)................ 1,968,971 1,959,126
Fasco Grantor Trust 6.65% 2001.............................. 576,093 580,431
Felcor Suites Hotels, Inc. 7.38% 2004....................... 405,000 374,216
Financiera Energetica Nacional SA 9.38% 2006................ 750,000 641,250
Fingerhut Financial Services 6.45% 2002..................... 736,000 738,525
First Union-Lehman Brothers Commercial Mortgage Trust 6.60%
2007...................................................... 2,250,000 2,304,382
First Union-Lehman Brothers Commercial Mortgage Trust 7.30%
2006...................................................... 1,050,000 1,132,541
Ford Capital BV 9.50% 2001.................................. 800,000 874,000
GE Capital Mortgage Services, Inc. 6.50% 2024............... 637,890 614,562
General Motors Acceptance Corp. 5.75% 2003.................. 1,645,000 1,654,146
H & T Master Trust 8.00% 2002*(1)........................... 900,000 901,406
Household Finance Corp. 6.98% 2000.......................... 1,440,000 1,468,296
MBNA Master Credit Card Trust II 5.53% 2009(2).............. 3,200,000 3,138,976
Merrill Lynch Mortgage Investments, Inc. 6.39% 2030(1)...... 3,000,000 3,067,500
Morgan Stanley Capital I 7.46% 2006(1)...................... 1,400,000 1,539,125
NWA Trust 8.26% 2006........................................ 228,855 248,438
PXRE Capital Trust I 8.85% 2027............................. 265,000 260,659
Residential Accredit Loans Inc. 7.75% 2027(1)............... 2,000,000 2,040,180
Sears Credit Account Master Trust 6.20% 2006................ 700,000 706,342
Standard Credit Card Master Trust 8.25% 2003................ 1,010,000 1,080,700
Tanger Properties Ltd. 8.75% 2001........................... 1,160,000 1,212,130
-------------
57,631,400
-------------
HEALTHCARE -- 0.1%
Health Services -- 0.1%
Tenet Healthcare Corp. 8.00% 2005........................... 430,000 445,050
-------------
</TABLE>
- ---------------------
46
<PAGE> 48
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
--------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL -- 1.4%
Aerospace & Military Technology -- 0.3%
Newport News Shipbuilding, Inc. 9.25% 2006.................. $ 250,000 $ 267,813
Raytheon Co. 6.45% 2002..................................... 630,000 643,236
Raytheon Co. 6.30% 2000..................................... 920,000 929,660
Business Services -- 0.7%
Allied Waste North America, Inc. 10.25% 2006................ 500,000 585,000
Comdisco Inc. 6.13% 2003.................................... 2,070,000 2,092,770
Hertz Corp. 7.00% 2003...................................... 750,000 774,555
Loewen Group International, Inc. 8.25% 2003................. 1,005,000 871,837
United Rentals, Inc. 8.80% 2008*............................ 500,000 500,000
WESCO Distribution, Inc., Series B 9.13% 2008*.............. 250,000 253,125
Electrical Equipment -- 0.1%
Westinghouse Electric Corp. 8.88% 2001...................... 740,000 785,332
Multi-Industry -- 0.3%
Tyco International Group SA 5.88% 2004*..................... 1,765,000 1,753,969
Transportation -- 0.0%
MRS Logistica SA 10.63% 2005(1)............................. 300,000 165,000
MRS Logistica SA 10.63% 2005*............................... 230,000 132,324
-------------
9,754,621
-------------
INFORMATION & ENTERTAINMENT -- 2.1%
Broadcasting & Media -- 1.6%
Chancellor Media Corp. 8.13% 2007........................... 500,000 500,000
News America Holdings, Inc. 8.00% 2016...................... 135,000 150,391
News America Holdings, Inc. 9.25% 2013...................... 1,540,000 1,850,926
Paramount Communications, Inc. 7.50% 2002................... 200,000 207,082
Poland Communications, Inc. 9.88% 2003...................... 160,000 141,035
Rogers Cablesystems Ltd. 9.63% 2002......................... 440,000 474,100
TCI Communciations, Inc. 8.65% 2004......................... 400,000 457,888
TCI Communications, Inc. 8.75% 2015......................... 120,000 150,298
Time Warner, Inc. 6.85% 2026................................ 850,000 877,982
Time Warner, Inc. 7.95% 2000................................ 4,345,000 4,444,761
TKR Cable, Inc. 10.50% 2007................................. 255,000 278,572
Viacom, Inc. 6.75% 2003..................................... 2,020,000 2,077,126
Leisure & Tourism -- 0.5%
America West Airlines 8.16% 2002............................ 887,361 917,123
Continental Airlines, Inc. 6.54% 2009....................... 415,000 402,733
ITT Corp. 6.25% 2000........................................ 1,215,000 1,175,160
Northwest Airlines Corp. 8.97% 2015......................... 855,933 962,488
Northwest Airlines Corp. 12.09% 2000........................ 16,864 18,281
-------------
15,085,946
-------------
INFORMATION TECHNOLOGY -- 2.0%
Telecommunications -- 2.0%
360 Communications Co. 7.13% 2003........................... 1,330,000 1,399,758
Adelphia Communications Corp. 10.25% 2000................... 250,000 255,000
Intermedia Communications, Inc. 8.60% 2008*................. 500,000 487,500
Nextel Communications, Inc. zero coupon 2004(3)............. 485,000 481,363
Orange PLC 8.00% 2008....................................... 750,000 763,125
PanAmSat Corp. 6.13% 2005*.................................. 2,270,000 2,236,835
Tele-Communications, Inc. 7.38% 2000........................ 1,000,000 1,019,910
Tele-Communications, Inc. 8.25% 2003........................ 2,500,000 2,754,625
Tele-Communications, Inc. 9.65% 2003........................ 375,000 414,180
Worldcom, Inc. 6.13% 2001................................... 1,695,000 1,720,239
</TABLE>
---------------------
47
<PAGE> 49
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
--------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Telecommunications (continued)
Worldcom, Inc. 6.40% 2005................................... $ 1,330,000 $ 1,380,035
Worldcom, Inc. 9.38% 2004................................... 1,600,000 1,662,560
-------------
14,575,130
-------------
MATERIALS -- 0.0%
Metals & Minerals -- 0.0%
Industrias Metalurgicas Pescarmona SA 9.50% 2002*........... 120,000 73,034
-------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 0.9%
Foreign Government -- 0.9%
Government of Poland 3.00% 2024(3).......................... 560,000 376,600
Government of Poland 5.00% 2014(2).......................... 730,000 686,200
Korea Republic 8.75% 2003................................... 1,160,000 1,163,109
Province of Quebec 13.25% 2014.............................. 625,000 688,225
Province of Tucuman 9.45% 2004(1)........................... 402,500 322,000
Province of Tucuman 9.45% 2004*............................. 139,619 116,697
Republic Of Colombia 7.25% 2003............................. 350,000 304,289
Republic of Panama 6.19% 2002(2)............................ 1,723,106 1,563,280
State of Israel 6.38% 2005.................................. 635,000 613,346
United Mexican States 6.25% 2019(1)......................... 730,000 564,838
-------------
6,398,584
-------------
REAL ESTATE -- 0.3%
Real Estate Investment Trusts -- 0.3%
Chelsea GCA Realty, Inc. 7.75% 2001......................... 570,000 565,634
Liberty Property Trust 7.10% 2004........................... 215,000 205,996
Meditrust Corp. 7.38% 2000.................................. 1,150,000 1,108,013
-------------
1,879,643
-------------
U.S. GOVERNMENT & AGENCIES -- 12.8%
U.S. Government & Agencies -- 12.8%
Federal Home Loan Mortgage Corp. 6.00% 2012................. 553,825 554,861
Federal Home Loan Mortgage Corp. 6.00% 2013................. 178,104 178,437
Federal Home Loan Mortgage Corp. 6.00% 2099@................ 5,000,000 5,009,350
Federal Home Loan Mortgage Corp. 6.35% 2018................. 3,000,000 3,028,110
Federal Home Loan Mortgage Corp. 6.50% 2099@................ 8,000,000 8,117,440
Federal Home Loan Mortgage Corp. 7.00% 2099................. 3,000,000 3,061,860
Federal Home Loan Mortgage Corp. 7.50% 2025................. 60,339 61,979
Federal Home Loan Mortgage Corp. 7.50% 2027................. 37,869 38,886
Federal Home Loan Mortgage Corp. 7.50% 2027................. 767,971 788,606
Federal Home Loan Mortgage Corp. 7.50% 2027................. 28,775 29,548
Federal Home Loan Mortgage Corp. 7.50% 2028................. 52,079 53,478
Federal Home Loan Mortgage Corp. 7.50% 2028................. 720,524 739,885
Federal Home Loan Mortgage Corp. 6.50% 2099................. 3,000,000 3,022,500
Federal Home Loan Mortgage Corp. 7.00% 2027................. 1,184,605 1,209,031
Federal Home Loan Mortgage Corp. 7.00% 2028................. 725,287 740,242
Federal Home Loan Mortgage Corp. 7.00% 2028................. 863,485 881,290
Federal Home Loan Mortgage Corp. 7.50% 2028................. 1,091,307 1,120,631
Federal Home Loan Mortgage Corp. 7.50% 2027................. 1,100,066 1,129,625
Federal Home Loan Mortgage Corp. 7.00% 2028................. 107,990 110,217
Federal Home Loan Mortgage Corp. 7.00% 2028................. 3,953,911 4,035,441
Federal Home Loan Mortgage Corp. 7.00% 2028................. 1,977,368 2,018,142
Federal Home Loan Mortgage Corp. 7.50% 2027................. 7,035,000 7,224,030
Federal Home Loan Mortgage Corp. 7.50% 2028................. 284,910 292,565
Federal National Mortgage Association 6.00% 2099@........... 4,000,000 4,005,000
Federal National Mortgage Association 6.50% 2025............ 479,668 482,963
Federal National Mortgage Association 6.50% 2025............ 499,503 502,934
</TABLE>
- ---------------------
48
<PAGE> 50
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
--------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT & AGENCIES (continued)
U.S. Government & Agencies (continued)
Federal National Mortgage Association 6.50% 2025............ $ 659,222 $ 663,751
Federal National Mortgage Association 6.50% 2026............ 836,203 841,948
Federal National Mortgage Association 6.50% 2026............ 714,511 719,420
Federal National Mortgage Association 6.50% 2027............ 865,360 871,037
Federal National Mortgage Association 6.50% 2027............ 230,752 232,265
Federal National Mortgage Association 6.50% 2027............ 809,083 814,391
Federal National Mortgage Association 6.50% 2027............ 47,111 47,420
Federal National Mortgage Association 6.50% 2027............ 56,339 56,708
Federal National Mortgage Association 6.50% 2027............ 52,577 52,922
Federal National Mortgage Association 6.50% 2027............ 188,050 189,283
Federal National Mortgage Association 6.50% 2027............ 57,227 57,602
Federal National Mortgage Association 6.50% 2027............ 216,214 217,632
Federal National Mortgage Association 6.50% 2027............ 842,925 848,455
Federal National Mortgage Association 6.50% 2028............ 763,035 768,041
Federal National Mortgage Association 6.50% 2028............ 757,361 762,329
Federal National Mortgage Association 6.50% 2028............ 755,212 760,166
Federal National Mortgage Association 6.50% 2028............ 211,860 213,249
Federal National Mortgage Association 7.00% 2099@........... 8,000,000 8,182,480
Government National Mortgage Association 7.00% 2023......... 399,816 409,555
Government National Mortgage Association 7.00% 2023......... 159,137 163,014
Government National Mortgage Association 7.00% 2023......... 17,035 17,450
Government National Mortgage Association 7.00% 2023......... 320,820 328,218
Government National Mortgage Association 7.00% 2023......... 338,653 346,903
Government National Mortgage Association 7.00% 2023......... 89,986 92,178
Government National Mortgage Association 7.00% 2023......... 201,716 206,630
Government National Mortgage Association 7.00% 2023......... 181,216 185,395
Government National Mortgage Association 7.00% 2023......... 168,144 172,240
Government National Mortgage Association 7.00% 2023......... 447,981 458,464
Government National Mortgage Association 7.00% 2023......... 800,416 819,914
Government National Mortgage Association 7.00% 2023......... 510,826 523,270
Government National Mortgage Association 7.00% 2023......... 433,250 443,804
Government National Mortgage Association 7.00% 2023......... 198,183 202,805
Government National Mortgage Association 7.00% 2023......... 371,996 381,057
Government National Mortgage Association 7.00% 2023......... 418,216 428,404
Government National Mortgage Association 7.00% 2023......... 418,586 428,783
Government National Mortgage Association 7.00% 2023......... 487,555 498,944
Government National Mortgage Association 7.00% 2023......... 146,661 150,034
Government National Mortgage Association 7.00% 2023......... 351,141 359,695
Government National Mortgage Association 7.00% 2023......... 211,528 216,681
Government National Mortgage Association 7.00% 2023......... 779,412 798,398
Government National Mortgage Association 7.00% 2023......... 46,797 47,937
Government National Mortgage Association 7.00% 2023......... 421,644 431,915
Government National Mortgage Association 7.00% 2099......... 1,000,000 1,023,750
Government National Mortgage Association 7.50% 2023......... 670,323 692,524
Government National Mortgage Association 8.00% 2026......... 74,776 77,767
Government National Mortgage Association 7.00% 2028......... 9,017 9,236
United States Treasury Bonds 8.13% 2021..................... 200,000 272,562
United States Treasury Bonds 8.75% 2020@.................... 2,710,000 3,878,688
United States Treasury Bonds Strip zero coupon 2019@........ 6,650,000 2,217,310
United States Treasury Bonds Strip zero coupon 2009@........ 4,410,000 2,648,117
United States Treasury Bonds Strip zero coupon 2012@........ 5,000,000 2,470,100
United States Treasury Bonds Strip zero coupon 2014@........ 5,080,000 2,194,865
United States Treasury Bonds Strip zero coupon 2017......... 50,000 18,055
United States Treasury Bonds Strip zero coupon 2017......... 3,800,000 1,380,958
United States Treasury Bonds Strip zero coupon 2019......... 40,000 12,779
United States Treasury Bonds Strip zero coupon 2020......... 5,710,000 1,773,355
-------------
91,517,904
-------------
</TABLE>
---------------------
49
<PAGE> 51
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
--------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 0.7%
Electric Utilities -- 0.3%
National Power Corp. 7.88% 2006............................. $ 210,000 $ 179,325
Niagara Mohawk Power Corp. 6.88% 2003....................... 870,000 894,064
Niagara Mohawk Power Corp. 7.00% 2000....................... 620,000 632,022
Niagara Mohawk Power Corp. 7.38% 2003....................... 210,000 214,217
Gas & Pipeline Utilities -- 0.4%
CMS Energy Corp. 7.38% 2000................................. 1,150,000 1,165,157
Williams Cos., Inc. 6.13% 2002.............................. 1,875,000 1,880,794
-------------
4,965,579
-------------
TOTAL BONDS & NOTES (cost $212,821,082)..................... 214,465,894
-------------
TOTAL INVESTMENT SECURITIES (cost $579,591,240)............. 591,562,525
-------------
<CAPTION>
SHORT-TERM SECURITIES -- 2.3%
--------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 1.2%
Bridas Corp. 10.25% due 12/07/98............................ 610,000 610,156
Central Maine Power Co. 7.45% due 8/30/99................... 885,000 895,248
Countrywide Funding Corp. 8.43% due 11/16/99................ 450,000 463,154
K Mart Corp. 7.22% due 7/07/99.............................. 300,000 301,362
K Mart Corp. 7.96% due 11/15/99............................. 500,000 507,185
NWCG Holding Corp. zero coupon due 6/15/99.................. 1,380,000 1,326,249
Oryx Energy Co. 9.50% due 11/01/99.......................... 1,820,000 1,872,088
Signet Banking Corp. 9.63% due 6/01/99...................... 775,000 789,523
Time Warner Pass Through Asset Trust 4.90% due 7/29/99...... 1,600,000 1,592,224
-------------
8,357,189
-------------
U.S. GOVERNMENT -- 1.1%
United States Treasury Bills 3.97% due 2/04/99@............. 4,610,000 4,573,376
United States Treasury Bills 4.22% due 2/04/99@............. 3,010,000 2,986,088
United States Treasury Bills 4.52% due 2/04/99@............. 300,000 297,617
-------------
7,857,081
-------------
TOTAL SHORT-TERM SECURITIES (cost $16,151,815).............. 16,214,270
-------------
</TABLE>
<TABLE>
<CAPTION>
REPURCHASE AGREEMENT -- 17.5%
---------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 17.5%
Agreement with Nomura Securities International, bearing
interest at 5.25%, dated 11/30/98 to be repurchased
12/01/98 in the amount of $125,118,244 and collateralized
by $100,000,000 of U.S. Treasury Notes, bearing interest
at 5.37% due 6/30/03, $16,735,000 U.S. Treasury Bonds
bearing interest at 8.12% due 8/15/19 with an approximate
aggregate value of $127,655,006 (cost $125,100,000)@...... 125,100,000 125,100,000
-------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS --
(cost $720,843,055) 102.8% 732,876,795
Total Written Call Options -- (0.0) (63)
Liabilities in excess of other assets -- (2.8) (19,831,462)
------ -------------
NET ASSETS -- 100.0% $ 713,045,270
====== =============
</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, 1998.
(3) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date
- ---------------------
50
<PAGE> 52
@ The security or a portion thereof represent collateral
for the following open futures contracts:
OPEN FUTURES CONTRACTS
----------------------------------------------------------
<TABLE>
<CAPTION>
UNREALIZED
NUMBER OF EXPIRATION VALUE AT VALUE AS OF APPRECIATION/
CONTRACTS DESCRIPTION DATE TRADE DATE NOVEMBER 30, 1998 DEPRECIATION
-----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
Standard & Poor's 500
449 Long Index....................... December 1998 $121,232,780 $130,490,625 $9,257,845
3 Long 90 Day Euro Dollar.......... March 1999 707,494 713,325 5,831
4 Short 90 Day Euro Dollar.......... June 1999 955,975 951,851 4,124
1 Long 90 Day Euro Future.......... September 1999 237,074 237,863 789
10 Long U.S. 2 Year Note............ March 1999 2,112,407 2,117,344 4,937
45 Short U.S. 5 Year Note............ March 1999 5,084,334 5,105,392 (21,058)
73 Long U.S. Treasury Bond.......... December 1998 8,321,121 9,478,594 157,473
20 Long U.S. Treasury Bond.......... March 1999 2,592,002 2,591,875 (127)
-----------
Net Unrealized Appreciation................................................... $9,409,814
===========
</TABLE>
OPEN COVERED WRITTEN CALL OPTIONS
----------------------------------------------------------
<TABLE>
<CAPTION>
EXPIRATION STRIKE
CALL OPTIONS CONTRACTS DATE PRICE VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Lear Corp. .................................... 5 December 1998 $45 $(63)
=====
</TABLE>
See Notes to Financial Statements
---------------------
51
<PAGE> 53
- ---------------------
SUNAMERICA SERIES TRUST
UTILITY PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
COMMON STOCK -- 88.0% SHARES VALUE
---------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY -- 2.9%
Energy Sources -- 2.9%
Houston Industries, Inc. ................................... 38,200 $ 1,208,075
Sonat, Inc. ................................................ 26,800 795,625
------------
2,003,700
------------
INDUSTRIAL & COMMERCIAL -- 0.7%
Multi-Industry -- 0.7%
VEBA AG..................................................... 9,000 504,000
------------
INFORMATION TECHNOLOGY -- 2.7%
Telecommunications -- 2.7%
ALLTEL Corp. ............................................... 7,000 371,000
Telecom Italia SpA.......................................... 82,000 664,152
U.S. West, Inc. ............................................ 12,600 784,350
------------
1,819,502
------------
MATERIALS -- 2.4%
Metals & Minerals -- 2.4%
Barrick Gold Corp. ......................................... 30,300 606,000
USEC, Inc. ................................................. 76,200 1,033,463
------------
1,639,463
------------
REAL ESTATE -- 6.8%
Real Estate Investment Trusts -- 6.8%
Apartment Investment & Management Co., Class A.............. 11,200 383,600
Archstone Communities Trust................................. 12,470 260,311
Avalonbay Communities, Inc. ................................ 10,050 340,444
Boston Properties, Inc. .................................... 6,300 198,844
Brandywine Realty Trust..................................... 15,000 270,000
Camden Property Trust....................................... 16,000 411,000
Duke Realty Investments, Inc. .............................. 11,100 251,831
Equity Office Properties Trust.............................. 10,200 256,275
Equity Residential Properties Trust......................... 8,700 368,119
First Industrial Realty Trust, Inc. ........................ 20,800 503,100
HRPT Properties Trust....................................... 22,900 342,069
Liberty Property Trust...................................... 13,200 325,050
Post Properties, Inc. ...................................... 8,700 332,775
Prentiss Properties Trust................................... 17,000 369,750
------------
4,613,168
------------
UTILITIES -- 72.5%
Electric Utilities -- 37.3%
BEC Energy.................................................. 26,200 1,080,750
Central & South West Corp. ................................. 24,500 673,750
Dominion Resources, Inc. ................................... 30,200 1,394,862
DQE, Inc. .................................................. 34,500 1,416,656
Duke Energy Corp. .......................................... 6,000 375,375
Edison International........................................ 63,100 1,735,250
Electricidade de Portugal, SA............................... 2,625 116,813
Endesa SA................................................... 6,600 171,600
Entergy Corp. .............................................. 29,700 870,581
</TABLE>
- ---------------------
52
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
---------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Electric Utilities (continued)
FirstEnergy Corp. .......................................... 35,000 $ 1,082,812
Florida Progress Corp. ..................................... 19,400 829,350
FPL Group, Inc. ............................................ 15,200 931,000
Illinova Corp. ............................................. 30,900 836,231
Montana Power Co. .......................................... 17,400 881,962
New England Electric Systems................................ 29,300 1,223,275
Niagara Mohawk Power Corp.+................................. 53,000 814,875
NIPSCO Industries, Inc. .................................... 41,100 1,204,744
Oge Energy Corp. ........................................... 41,600 1,162,200
PacifiCorp.................................................. 93,300 1,749,375
PECO Energy Co. ............................................ 36,700 1,472,587
Pinnacle West Capital Corp. ................................ 11,000 501,188
Potomac Electric Power Co. ................................. 42,500 1,107,656
Powergen PLC................................................ 5,590 309,197
Public Service Enterprise Group, Inc. ...................... 29,000 1,131,000
Puget Sound Energy, Inc. ................................... 22,300 604,888
Southern Co. ............................................... 22,300 657,850
TECO Energy, Inc. .......................................... 24,700 663,813
Texas Utilities Co. ........................................ 9,000 401,063
Gas & Pipeline Utilities -- 22.0%
AGL Resources, Inc. ........................................ 21,000 452,813
CMS Energy Corp. ........................................... 30,700 1,496,625
Columbia Gas Systems, Inc. ................................. 11,400 646,950
Consolidated Natural Gas Co. ............................... 23,700 1,287,206
El Paso Energy Corp. ....................................... 48,500 1,655,062
Enron Corp. ................................................ 26,000 1,366,625
Equitable Resources, Inc. .................................. 11,200 329,700
KeySpan Energy Corp......................................... 51,900 1,540,781
KN Energy, Inc. ............................................ 14,100 616,875
MCN Energy Group, Inc. ..................................... 37,200 704,475
National Fuel Gas Co. ...................................... 10,700 491,531
Pacific Gas & Electric Corp. ............................... 25,100 776,531
Questar Corp. .............................................. 28,200 541,088
SCANA Corp. ................................................ 28,200 920,025
Sempra Energy............................................... 47,725 1,196,108
UGI Corp. .................................................. 18,900 460,688
Washington Gas Light Co. ................................... 6,400 163,200
Williams Cos., Inc. ........................................ 10,400 299,650
Telephone -- 13.2%
Ameritech Corp. ............................................ 11,600 627,850
AT&T Corp. ................................................. 20,300 1,264,943
Bell Atlantic Corp. ........................................ 26,000 1,446,250
BellSouth Corp. ............................................ 6,100 532,225
Cincinnati Bell, Inc. ...................................... 23,300 733,950
GTE Corp. .................................................. 24,600 1,525,200
MCI WorldCom, Inc.+......................................... 12,680 748,120
SBC Communications, Inc. ................................... 21,028 1,008,030
Sprint Corp. ............................................... 13,500 982,125
Sprint Corp. ............................................... 6,750 108,000
------------
49,323,329
------------
TOTAL COMMON STOCK (cost $55,935,822)....................... 59,903,162
------------
</TABLE>
---------------------
53
<PAGE> 55
<TABLE>
<CAPTION>
PREFERRED STOCK -- 3.5% SHARES VALUE
---------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 3.5%
Electric Utilities -- 1.6%
Texas Utilities Co. 9.25% convertible....................... 19,600 $ 1,092,700
Gas & Pipeline Utilities -- 1.9%
KN Energy, Inc. 8.25% convertible........................... 29,500 1,275,875
------------
2,368,575
------------
TOTAL PREFERRED STOCK (cost $2,285,830)..................... 2,368,575
------------
PRINCIPAL
CONVERTIBLE BONDS -- 1.3% AMOUNT
---------------------------------------------------------------------------------------
FINANCE -- 1.3%
Financial Services -- 1.3%
Bell Atlantic Financial Services 5.75% 2003 convertible*
(cost $838,820)........................................... $ 820,000 840,500
------------
TOTAL INVESTMENT SECURITIES (cost $59,060,472).............. 63,112,237
------------
SHORT-TERM SECURITIES -- 8.3%
---------------------------------------------------------------------------------------
TIME DEPOSIT -- 5.0%
Cayman Island Time Deposit with State Street Bank & Trust
Co. 3.75% due 12/01/98 (cost $3,402,000).................. 3,402,000 3,402,000
U.S. GOVERNMENT -- 3.3%
United States Treasury Notes 6.38% due 4/30/99 (cost
$2,266,140)............................................... 2,250,000 2,265,818
------------
TOTAL SHORT-TERM SECURITIES (cost $5,668,140)............... 5,667,818
------------
TOTAL INVESTMENTS --
(cost $64,728,612) 101.1% 68,780,055
Liabilities in excess of other assets -- (1.1) (731,347)
------ ------------
NET ASSETS -- 100.0% $68,048,708
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
* Resale restricted to qualified institutional buyers
See Notes to Financial Statements
- ---------------------
54
<PAGE> 56
- ---------------------
SUNAMERICA SERIES TRUST
GROWTH-INCOME PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
COMMON STOCK -- 90.7% SHARES VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 9.8%
Apparel & Textiles -- 0.6%
Nautica Enterprises, Inc.+.................................. 290,000 $ 5,709,375
Automotive -- 0.6%
Harley-Davidson, Inc. ...................................... 157,100 6,568,744
Housing -- 1.7%
Home Depot, Inc. ........................................... 340,000 16,915,000
Retail -- 6.9%
Dayton Hudson Corp. ........................................ 195,000 8,775,000
Kohl's Corp.+............................................... 145,000 7,132,187
Kroger Co.+................................................. 125,000 6,632,813
Newell Co. ................................................. 125,000 5,531,250
Rite Aid Corp. ............................................. 165,000 7,651,875
United States Industries, Inc.+............................. 350,000 6,125,000
Wal-Mart Stores, Inc. ...................................... 385,000 28,995,312
---------------
100,036,556
---------------
CONSUMER STAPLES -- 9.6%
Food, Beverage & Tobacco -- 6.3%
Campbell Soup Co. .......................................... 127,000 7,254,875
Coca-Cola Co. .............................................. 310,000 21,719,375
Coca-Cola Enterprises, Inc. ................................ 135,000 5,104,687
Philip Morris Cos., Inc. ................................... 440,000 24,612,500
Tyson Foods, Inc., Class A.................................. 270,000 5,585,625
Household Products -- 3.3%
Avon Products, Inc. ........................................ 160,000 6,500,000
Colgate-Palmolive Co. ...................................... 93,000 7,963,125
Estee Lauder Cos., Inc., Class A............................ 105,000 7,881,563
Procter & Gamble Co. ....................................... 125,000 10,953,125
---------------
97,574,875
---------------
ENERGY -- 1.9%
Energy Services -- 1.0%
Halliburton Co. ............................................ 275,000 8,078,125
Noble Drilling Corp.+....................................... 250,000 2,890,625
Energy Sources -- 0.9%
USX-Marathon Group, Inc..................................... 315,000 8,938,125
---------------
19,906,875
---------------
FINANCE -- 16.5%
Banks -- 5.5%
Bank One Corp. ............................................. 210,000 10,775,625
BankAmerica Corp. .......................................... 353,030 23,013,143
Chase Manhattan Corp. ...................................... 240,000 15,225,000
Fleet Financial Group, Inc. ................................ 174,000 7,253,625
Financial Services -- 9.1%
Associates First Capital Corp., Class A..................... 115,000 8,955,625
Citigroup, Inc. ............................................ 542,600 27,231,737
Hartford Financial Services Group, Inc. .................... 110,000 6,070,625
</TABLE>
---------------------
55
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Household International, Inc. .............................. 180,000 $ 7,042,500
Legg Mason, Inc. ........................................... 154,000 4,591,125
MBNA Corp. ................................................. 270,000 6,125,625
Merrill Lynch & Co., Inc. .................................. 160,000 12,000,000
Morgan Stanley Dean Witter & Co. ........................... 186,265 12,991,984
Newcourt Credit Group, Inc. ................................ 230,000 8,136,250
Insurance -- 1.9%
Hartford Life, Inc., Class A................................ 115,000 6,303,438
PMI Group, Inc. ............................................ 135,000 7,382,812
Travelers Property Casualty Corp., Class A.................. 155,000 5,337,813
---------------
168,436,927
---------------
HEALTHCARE -- 8.5%
Drugs -- 6.7%
Bristol-Myers Squibb Co. ................................... 200,000 24,512,500
GelTex Pharmaceuticals, Inc.+............................... 210,000 5,013,750
Pfizer, Inc. ............................................... 200,000 22,325,000
Schering-Plough Corp. ...................................... 160,000 17,020,000
Medical Products -- 1.8%
Centocor, Inc.+............................................. 97,400 3,944,700
Genzyme Corp. .............................................. 16,208 56,726
Genzyme Molecular Oncology+................................. 150,000 6,309,375
Medtronic, Inc. ............................................ 112,700 7,628,382
---------------
86,810,433
---------------
INDUSTRIAL & COMMERCIAL -- 9.1%
Aerospace & Military Technology -- 2.3%
AlliedSignal, Inc. ......................................... 180,000 7,920,000
Gulfstream Aerospace Corp.+................................. 105,000 5,394,375
United Technologies Corp. .................................. 95,000 10,182,813
Business Services -- 1.7%
First Data Corp. ........................................... 178,000 4,750,375
R.R. Donnelley & Sons Co. .................................. 135,000 5,729,063
Republic Services, Inc. Class A+............................ 180,000 3,352,500
Waste Management, Inc. ..................................... 92,125 3,949,859
Electrical Equipment -- 3.7%
General Electric Co. ....................................... 415,000 37,557,500
Multi-Industry -- 1.1%
Tyco International Ltd. .................................... 165,800 10,911,712
Transportation -- 0.3%
CNF Transportation, Inc. ................................... 80,000 2,855,000
Union Pacific Corp. ........................................ 1 48
---------------
92,603,245
---------------
INFORMATION & ENTERTAINMENT -- 4.8%
Broadcasting & Media -- 1.2%
Fox Entertainment Group, Inc., Class A+..................... 200,000 4,725,000
Gannett Co., Inc. .......................................... 105,000 6,779,063
Leisure & Tourism -- 3.6%
Carnival Corp., Class A..................................... 210,400 7,258,800
Continental Airlines, Inc., Class B+........................ 100,000 3,531,250
Delta Air Lines, Inc. ...................................... 90,000 4,831,875
Mirage Resorts, Inc.+....................................... 264,500 3,934,437
Northwest Airlines Corp., Class A+.......................... 190,000 4,761,875
</TABLE>
- ---------------------
56
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT (continued)
Leisure & Tourism (continued)
Royal Caribbean Cruises Ltd. ............................... 210,000 $ 6,378,750
Viad Corp. ................................................. 270,000 6,294,375
---------------
48,495,425
---------------
INFORMATION TECHNOLOGY -- 27.9%
Computers & Business Equipment -- 9.4%
Cisco Systems, Inc.+........................................ 315,000 23,743,125
Compaq Computer Corp. ...................................... 395,000 12,837,500
Computer Sciences Corp.+.................................... 105,000 5,998,125
Dell Computer Corp.+........................................ 320,000 19,460,000
FORE Systems, Inc.+......................................... 325,000 4,915,625
International Business Machines Corp. ...................... 135,000 22,275,000
Staples, Inc.+.............................................. 195,400 6,826,787
Electronics -- 8.7%
Altera Corp.+............................................... 140,000 6,868,750
Honeywell, Inc. ............................................ 90,000 7,194,375
Intel Corp. ................................................ 235,000 25,291,875
Motorola, Inc. ............................................. 170,000 10,540,000
Sanmina Corp.+.............................................. 200,000 9,962,500
Solectron Corp.+............................................ 135,000 8,935,313
Sundstrand Corp. ........................................... 80,000 4,320,000
Texas Instruments, Inc. .................................... 130,000 9,928,750
Uniphase Corp.+............................................. 100,000 5,418,750
Software -- 5.6%
America Online, Inc.+....................................... 40,000 3,502,500
HBO & Co. .................................................. 250,000 6,234,375
Intuit, Inc.+............................................... 115,000 6,655,625
Microsoft Corp.+............................................ 335,000 40,870,000
Telecommunications -- 4.2%
AirTouch Communications, Inc.+.............................. 180,000 10,293,750
Liberty Media Group, Series A+.............................. 233,462 9,411,437
Lucent Technologies, Inc. .................................. 195,000 16,782,187
Tele-Communications, Inc., Class A+......................... 145,000 6,126,250
---------------
284,392,599
---------------
MATERIALS -- 0.1%
Forest Products -- 0.1%
Champion International Corp................................. 17,000 706,563
---------------
UTILITIES -- 2.5%
Electric Utilities -- 1.4%
AES Corp.+.................................................. 150,000 6,862,500
Consolidated Edison, Inc. .................................. 150,000 7,621,875
Gas & Pipeline Utilities -- 0.6%
CMS Energy Corp. ........................................... 130,000 6,337,500
Telephone -- 0.5%
MCI WorldCom, Inc.+......................................... 85,000 5,015,000
---------------
25,836,875
---------------
TOTAL INVESTMENT SECURITIES (cost $677,998,043)............. 924,800,373
---------------
</TABLE>
---------------------
57
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<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 9.2% AMOUNT VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 9.0%
Cayman Island Time Deposit with State Street Bank & Trust
Co.
4.50% due 12/01/98@....................................... $92,214,000 $ 92,214,000
U.S. GOVERNMENT -- 0.2%
United States Treasury Bills 4.45% due 12/17/98............. 2,000,000 1,996,044
---------------
TOTAL SHORT-TERM SECURITIES (cost $94,210,044).............. 94,210,044
---------------
TOTAL INVESTMENTS --
(cost $772,208,087) 99.9% 1,019,010,417
Other assets less liabilities -- 0.1 579,710
------ ---------------
NET ASSETS -- 100.0% $ 1,019,590,127
====== ===============
</TABLE>
-----------------------------
+ Non-income producing securities.
@ The security or a portion thereof represents collateral for the
following open futures contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
---------------------------------------------------------------------------------------------------------
VALUE AS OF
NUMBER OF EXPIRATION VALUE AT NOVEMBER 30, UNREALIZED
CONTRACTS DESCRIPTION DATE TRADE DATE 1998 APPRECIATION
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
135 Long Standard & Poor's 500 Index........ December 1998 $33,505,312 $39,234,375 $5,729,063
==========
</TABLE>
See Notes to Financial Statements
- ---------------------
58
<PAGE> 60
- ---------------------
SUNAMERICA SERIES TRUST
FEDERATED VALUE PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
COMMON STOCK -- 96.4% SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 10.2%
Automotive -- 3.3%
Cooper Tire & Rubber........................................ 40,300 $ 788,369
General Motors Corp. ....................................... 28,300 1,981,000
Tenneco, Inc. .............................................. 58,600 2,087,625
Retail -- 6.9%
American Stores Co. ........................................ 51,800 1,738,537
Dillards, Inc., Class A..................................... 49,800 1,711,875
Kmart Corp.+................................................ 92,400 1,409,100
Liz Claiborne, Inc. ........................................ 58,700 1,988,462
Sherwin-Williams Co. ....................................... 60,900 1,728,038
Wal-Mart Stores, Inc. ...................................... 19,500 1,468,594
-------------
14,901,600
-------------
CONSUMER STAPLES -- 13.7%
Food, Beverage & Tobacco -- 11.4%
Anheuser-Busch Cos., Inc. .................................. 37,000 2,243,125
Archer-Daniels-Midland Co. ................................. 154,315 2,835,538
Corn Products International, Inc. .......................... 95,700 2,685,581
Philip Morris Cos., Inc. ................................... 54,800 3,065,375
RJR Nabisco Holdings Corp. ................................. 76,600 2,207,038
UST, Inc. .................................................. 104,500 3,631,375
Household Products -- 2.3%
Kimberly-Clark Corp. ....................................... 63,100 3,320,637
-------------
19,988,669
-------------
ENERGY -- 9.1%
Energy Services -- 3.4%
Diamond Offshore Drilling, Inc. ............................ 54,800 1,226,150
ENSCO International, Inc. .................................. 28,600 273,488
Occidental Petroleum Corp. ................................. 50,500 1,022,625
Schlumberger Ltd. .......................................... 52,200 2,332,687
Energy Sources -- 5.7%
Exxon Corp. ................................................ 18,300 1,373,644
Houston Industries, Inc. ................................... 45,900 1,451,587
Mobil Corp. ................................................ 15,700 1,353,144
Royal Dutch Petroleum Co. GDR............................... 16,400 770,800
Sunoco, Inc. ............................................... 39,400 1,334,675
Texaco, Inc. ............................................... 16,000 921,000
USX-Marathon Group, Inc. ................................... 40,200 1,140,675
-------------
13,200,475
-------------
FINANCE -- 11.6%
Banks -- 0.6%
Republic New York Corp. .................................... 19,100 892,925
Financial Services -- 4.1%
Bear Stearns Cos., Inc. .................................... 40,000 1,680,000
CIT Group, Inc. ............................................ 100,400 2,817,475
Washington Mutual, Inc. .................................... 38,500 1,491,875
</TABLE>
---------------------
59
<PAGE> 61
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance -- 6.9%
Allstate Corp. ............................................. 29,800 $ 1,214,350
CIGNA Corp. ................................................ 35,000 2,723,437
Conseco, Inc. .............................................. 60,132 1,991,872
Lincoln National Corp. ..................................... 4,600 384,963
Marsh & McLennan Cos., Inc. ................................ 31,400 1,827,088
MBIA, Inc. ................................................. 14,600 945,350
Oxford Health Plans, Inc.+.................................. 88,900 983,456
-------------
16,952,791
-------------
HEALTHCARE -- 5.8%
Drugs -- 3.6%
Bristol-Myers Squibb Co. ................................... 11,400 1,397,213
Merck & Co., Inc. .......................................... 9,100 1,409,362
Pharmacia & Upjohn, Inc. ................................... 46,500 2,420,906
Health Services -- 1.2%
United HealthCare Corp. .................................... 41,000 1,850,125
Medical Products -- 1.0%
Abbott Laboratories, Inc. .................................. 30,100 1,444,800
-------------
8,522,406
-------------
INDUSTRIAL & COMMERCIAL -- 12.8%
Aerospace & Military Technology -- 2.1%
Boeing Co. ................................................. 74,200 3,014,375
Business Services -- 4.0%
Browning-Ferris Industries, Inc. ........................... 38,600 1,138,700
First Data Corp. ........................................... 78,900 2,105,644
Johnson Controls, Inc. ..................................... 21,900 1,267,462
Waste Management, Inc. ..................................... 31,000 1,329,125
Electrical Equipment -- 1.1%
AMP, Inc. .................................................. 33,931 1,641,412
Machinery -- 1.9%
Deere & Co. ................................................ 42,400 1,481,350
Ingersoll-Rand Co. ......................................... 26,500 1,240,531
Transportation -- 3.7%
ABB AB ADR.................................................. 14,700 1,558,200
Canadian National Railway Co. .............................. 23,400 1,263,600
CNF Transportation, Inc. ................................... 34,900 1,245,494
Ryder System, Inc. ......................................... 47,100 1,345,294
-------------
18,631,187
-------------
INFORMATION & ENTERTAINMENT -- 7.1%
Broadcasting & Media -- 2.7%
King World Productions, Inc.+............................... 52,400 1,427,900
Readers Digest Association, Inc., Class A................... 3,700 89,031
Viacom, Inc., Class A+...................................... 21,800 1,431,988
Viacom, Inc., Class B NV++.................................. 14,700 978,469
Entertainment Products -- 2.8%
Eastman Kodak Co. .......................................... 18,700 1,356,919
Toys "R" US, Inc.+.......................................... 138,300 2,731,425
Leisure & Tourism -- 1.6%
Brunswick Corp. ............................................ 40,800 897,600
Tricon Global Restaurants, Inc.+............................ 31,200 1,421,550
-------------
10,334,882
-------------
</TABLE>
- ---------------------
60
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY -- 9.3%
Computers & Business Equipment -- 6.5%
Electronic Data Systems Corp. .............................. 59,500 $ 2,320,500
International Business Machines Corp. ...................... 9,900 1,633,500
Seagate Technology, Inc.+................................... 56,400 1,663,800
Storage Technology Corp.+................................... 44,600 1,561,000
Sun Microsystems, Inc.+..................................... 31,000 2,295,938
Electronics -- 2.8%
Motorola, Inc. ............................................. 51,600 3,199,200
Philips Electronics NV...................................... 12,900 816,731
-------------
13,490,669
-------------
MATERIALS -- 5.9%
Chemicals -- 2.6%
Ashland, Inc. .............................................. 52,100 2,533,362
Dow Chemical Co. ........................................... 12,300 1,197,713
Metals & Minerals -- 3.3%
Barrick Gold Corp. ......................................... 59,700 1,194,000
Crown, Cork & Seal Co., Inc. ............................... 49,000 1,653,750
Nucor Corp. ................................................ 48,800 2,049,600
-------------
8,628,425
-------------
REAL ESTATE -- 0.5%
Real Estate Investment Trusts -- 0.5%
Boston Properties, Inc. .................................... 24,500 773,281
-------------
UTILITIES -- 10.4%
Electric Utilities -- 3.4%
Entergy Corp. .............................................. 53,400 1,565,287
PECO Energy Co. ............................................ 53,200 2,134,650
Public Service Enterprise Group, Inc. ...................... 33,800 1,318,200
Gas & Pipeline Utilities -- 3.1%
Coastal Corp. .............................................. 30,600 1,067,175
Consolidated Natural Gas Co. ............................... 34,800 1,890,075
Pacific Gas & Electric Corp. ............................... 51,000 1,577,813
Telephone -- 3.9%
AT&T Corp. ................................................. 23,500 1,464,344
GTE Corp. .................................................. 46,600 2,889,200
SBC Communications, Inc. ................................... 27,100 1,299,106
-------------
15,205,850
-------------
TOTAL COMMON STOCK (cost $127,871,766)...................... 140,630,235
-------------
PREFERRED STOCK -- 1.6%
----------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 1.6%
Broadcasting & Media -- 1.6%
News Corp. Ltd. ADR (cost $1,684,278)....................... 91,500 2,304,656
-------------
TOTAL INVESTMENT SECURITIES (cost $129,556,044)............. 142,934,891
-------------
</TABLE>
---------------------
61
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<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 3.2% AMOUNT VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 3.2%
Cayman Island Time Deposit with State Street Bank
& Trust Co.
3.75% due 12/01/98 (cost $4,744,000)...................... $4,744,000 $ 4,744,000
-------------
TOTAL INVESTMENTS --
(cost $134,300,044) 101.2% 147,678,891
Liabilities in excess of other assets -- (1.2) (1,779,052)
------ -------------
NET ASSETS -- 100.0% $145,899,839
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
GDR -- Global Depository Receipt
ADR -- American Depository Receipt
See Notes to Financial Statements
- ---------------------
62
<PAGE> 64
- ---------------------
SUNAMERICA SERIES TRUST
VENTURE VALUE PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
COMMON STOCK -- 92.7% SHARES VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 3.0%
Housing -- 1.8%
Masco Corp. ................................................ 1,070,200 $ 30,902,025
Maytag Corp. ............................................... 4,200 227,325
Retail -- 1.2%
Harcourt General, Inc. ..................................... 407,600 21,093,300
---------------
52,222,650
---------------
CONSUMER STAPLES -- 5.2%
Food, Beverage & Tobacco -- 4.9%
Coca-Cola Co. .............................................. 12,400 868,775
Gallaher Group PLC ADR...................................... 4,200 116,287
Nestle SA ADR............................................... 143,600 14,963,809
Philip Morris Cos., Inc. ................................... 1,233,300 68,987,719
Household Products -- 0.3%
Fortune Brands, Inc. ....................................... 4,200 143,063
Gillette Co. ............................................... 99,400 4,566,187
---------------
89,645,840
---------------
ENERGY -- 3.7%
Energy Services -- 2.6%
British Petroleum Co. PLC ADR............................... 79,471 7,321,266
Cooper Cameron Corp.+....................................... 178,500 4,350,937
Halliburton Co. ............................................ 478,800 14,064,750
Schlumberger Ltd. .......................................... 418,900 18,719,594
Energy Sources -- 1.1%
Amerada Hess Corp. ......................................... 1,800 99,900
Amoco Corp. ................................................ 2,800 165,025
Atlantic Richfield Co. ..................................... 4,800 319,200
Burlington Resources, Inc. ................................. 36,300 1,293,187
Chevron Corp. .............................................. 8,100 677,362
Devon Energy Corp. ......................................... 295,200 9,723,150
Exxon Corp. ................................................ 24,800 1,861,550
Mobil Corp. ................................................ 2,200 189,613
Noble Affiliates, Inc. ..................................... 206,857 5,236,068
Sonat, Inc. ................................................ 2,200 65,313
---------------
64,086,915
---------------
FINANCE -- 41.2%
Banks -- 5.5%
Bank One Corp. ............................................. 278,532 14,292,173
BankAmerica Corp. .......................................... 711,464 46,378,560
First Union Corp. .......................................... 4,500 273,375
Golden West Financial Corp. ................................ 108,800 10,302,000
SunTrust Banks, Inc. ....................................... 110,300 7,700,319
U.S. Bancorp................................................ 410,900 15,126,256
Financial Services -- 20.0%
American Express Co. ....................................... 956,600 95,719,787
CIT Group, Inc. ............................................ 29,000 813,813
Citigroup, Inc. ............................................ 1,242,631 62,364,543
</TABLE>
---------------------
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<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Donaldson, Lufkin & Jenrette, Inc. ......................... 228,200 $ 9,170,788
Dun & Bradstreet Corp. ..................................... 400 12,075
Federal Home Loan Mortgage Corp. ........................... 319,400 19,323,700
Household International, Inc. .............................. 538,600 21,072,725
Morgan (J.P.) & Co., Inc. .................................. 3,400 363,375
Morgan Stanley, Dean Witter & Co. .......................... 471,325 32,874,919
ReliaStar Financial Corp. .................................. 57,900 2,721,300
State Street Corp. ......................................... 145,900 10,012,387
Wells Fargo Co. ............................................ 2,532,900 91,184,400
Insurance -- 15.4%
20th Century Industries..................................... 132,700 3,226,269
Allstate Corp. ............................................. 497,290 20,264,568
American International Group, Inc. ......................... 73,300 6,890,200
Berkley (W.R.) Corp. ....................................... 84,900 2,844,150
Chubb Corp. ................................................ 657,200 46,045,075
General Reinsurance Corp. .................................. 380,300 88,800,050
Progressive Corp. .......................................... 367,300 54,498,137
Transatlantic Holdings, Inc. ............................... 482,400 36,662,400
UNUM Corp. ................................................. 122,400 6,594,300
Investment Companies -- 0.3%
Morgan Stanley Asia-Pacific Fund............................ 741,767 5,331,450
---------------
710,863,094
---------------
HEALTHCARE -- 5.3%
Drugs -- 4.3%
American Home Products Corp. ............................... 367,100 19,548,075
Bristol-Myers Squibb Co. ................................... 59,800 7,329,238
Glaxo Wellcome PLC ADR...................................... 23,700 1,504,950
Lilly (Eli) & Co. .......................................... 53,900 4,834,156
Merck & Co., Inc. .......................................... 50,000 7,743,750
Pfizer, Inc. ............................................... 41,600 4,643,600
SmithKline Beecham PLC ADR.................................. 460,300 28,049,531
Health Services -- 0.0%
IMS Health, Inc. ........................................... 400 26,550
Medical Products -- 1.0%
Johnson & Johnson Co........................................ 77,500 6,296,875
Novartis AG ADR............................................. 115,700 10,892,426
---------------
90,869,151
---------------
INDUSTRIAL & COMMERCIAL -- 2.7%
Business Services -- 0.0%
AC Nielsen Corp.+........................................... 133 3,666
Waste Management, Inc. ..................................... 1,015 43,518
Electrical Equipment -- 0.1%
General Electric Co. ....................................... 12,200 1,104,100
Machinery -- 1.1%
Dover Corp. ................................................ 444,700 15,842,437
Smith International, Inc.+.................................. 136,500 3,293,063
Transportation -- 1.5%
Burlington Northern Santa Fe Corp. ......................... 584,100 19,859,400
Canadian National Railway Co. .............................. 126,821 6,848,334
---------------
46,994,518
---------------
</TABLE>
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<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 6.2%
Broadcasting & Media -- 1.3%
Gannett Co., Inc. .......................................... 175,400 $ 11,324,262
New York Times Co., Class A................................. 27,600 857,325
News Corp. Ltd. ADR......................................... 135,400 3,791,200
Nielsen Media Research, Inc. ............................... 133 1,995
R.H. Donnelley Corp. ....................................... 80 1,195
Tribune Co. ................................................ 84,600 5,424,975
Washington Post Co., Class B................................ 100 53,219
Entertainment Products -- 0.6%
Hasbro, Inc. ............................................... 163,600 5,736,225
Mattel, Inc. ............................................... 126,800 4,382,525
Leisure & Tourism -- 4.3%
McDonald's Corp. ........................................... 1,069,400 74,924,838
---------------
106,497,759
---------------
INFORMATION TECHNOLOGY -- 17.8%
Communication Equipment -- 0.7%
Molex, Inc.................................................. 334,981 12,080,252
Computers & Business Equipment -- 8.7%
Hewlett-Packard Co. ........................................ 1,339,000 84,022,250
International Business Machines Corp. ...................... 398,800 65,802,000
Electronics -- 7.2%
Applied Materials, Inc.+.................................... 539,200 20,894,000
Intel Corp. ................................................ 338,000 36,377,250
Micron Technology, Inc.+.................................... 193,900 8,010,494
Texas Instruments, Inc. .................................... 776,500 59,305,187
Telecommunications -- 1.2%
AirTouch Communications, Inc.+.............................. 317,000 18,128,438
Globalstar Telecommunications Ltd.+......................... 42,296 835,346
Loral Space & Communications Corp.+......................... 83,200 1,528,800
---------------
306,984,017
---------------
MATERIALS -- 3.3%
Chemicals -- 0.0%
Dow Chemical Co. ........................................... 600 58,425
Forest Products -- 0.6%
International Paper Co. .................................... 1,300 56,469
Sealed Air Corp.+........................................... 209,700 9,253,012
Union Camp Corp. ........................................... 2,000 129,375
Metals & Minerals -- 2.7%
Martin Marietta Materials, Inc. ............................ 577,500 28,008,750
Vulcan Materials Co. ....................................... 149,400 18,731,025
---------------
56,237,056
---------------
REAL ESTATE -- 4.3%
Real Estate Companies -- 0.0%
Boardwalk Equities, Inc.+................................... 30,700 348,383
Crescent Operating, Inc.+................................... 45,330 175,654
Vornado Operating, Inc.+.................................... 13,330 84,979
Real Estate Investment Trusts -- 4.3%
CenterPoint Properties Corp. ............................... 46,100 1,567,400
Crescent Real Estate Equities Co. .......................... 505,300 12,537,756
Equity Office Properties Trust.............................. 175,300 4,404,413
Equity Residential Properties Trust......................... 69,600 2,944,950
</TABLE>
---------------------
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<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE (continued)
Real Estate Investment Trusts (continued)
Federal Realty Investment Trust............................. 47,800 $ 1,144,213
Gables Residential Trust.................................... 29,700 736,931
General Growth Properties, Inc. ............................ 333,000 12,612,375
Home Properties of New York, Inc. .......................... 34,200 842,175
Kimco Realty Corp. ......................................... 10,550 408,153
Mack-Cali Realty Corp. ..................................... 113,100 3,357,656
Public Storage, Inc. ....................................... 115,700 3,073,281
Reckson Associates Realty Corp. ............................ 99,600 2,297,025
The Rouse Co. .............................................. 611,800 16,709,787
United Dominion Realty Trust, Inc. ......................... 52,200 564,413
Vornado Realty Trust........................................ 266,600 10,130,800
Weingarten Realty Investors................................. 15,200 690,650
---------------
74,630,994
---------------
UTILITIES -- 0.0%
Electric Utilities -- 0.0%
Carolina Power & Light Co. ................................. 900 41,738
Duke Energy Corp. .......................................... 1,400 87,587
Edison International........................................ 700 19,250
New England Electric System................................. 500 20,875
Southern Co. ............................................... 1,600 47,200
Wisconsin Energy Corp. ..................................... 800 24,750
Gas & Pipeline Utilities -- 0.0%
Sempra Energy+.............................................. 500 12,531
Telephone -- 0.0%
SBC Communications, Inc..................................... 2,400 115,050
---------------
368,981
---------------
TOTAL COMMON STOCK (cost $1,280,691,802).................... 1,599,400,975
---------------
PREFERRED STOCK -- 0.7%
-------------------------------------------------------------------------------------------
FINANCE -- 0.1%
Financial Services -- 0.1%
Devon Financing Trust, convertible $3.25.................... 30,700 1,937,938
REAL ESTATE -- 0.5%
Real Estate Investment Trusts -- 0.5%
General Growth Properties, Inc., convertible 7.25%.......... 280,400 7,220,300
The Rouse Co., Series B convertible $3.00................... 16,000 704,000
Vornado Realty Trust, Series A convertible 6.50%............ 9,100 497,656
---------------
8,421,956
---------------
INFORMATION TECHNOLOGY -- 0.1%
Telecommunications -- 0.1%
AirTouch Communications, Inc., Series C convertible 4.25%... 24,597 2,020,029
---------------
TOTAL PREFERRED STOCK (cost $11,672,992).................... 12,379,923
---------------
TOTAL INVESTMENT SECURITIES (cost $1,292,364,794)........... 1,611,780,898
---------------
</TABLE>
- ---------------------
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<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 6.7% AMOUNT VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
FEDERAL AGENCY OBLIGATIONS -- 6.7%
Federal Home Loan Bank Discount Notes 4.79% due 12/16/98.... $33,600,000 $ 33,532,940
Federal Home Loan Mortgage Discount Notes 4.89% due
12/11/98.................................................. 23,800,000 23,767,671
Federal National Mortgage Association Discount Notes 4.70%
due 12/02/98.............................................. 29,890,000 29,886,098
Federal National Mortgage Association Discount Notes 4.76%
due 12/01/98.............................................. 28,045,000 28,045,000
---------------
TOTAL SHORT-TERM SECURITIES (cost $115,231,709)............. 115,231,709
---------------
TOTAL INVESTMENTS --
(cost $1,407,596,503) 100.1% 1,727,012,607
Liabilities in excess of other assets -- (0.1) (1,601,771)
------ ---------------
NET ASSETS -- 100.0% $1,725,410,836
====== ===============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
67
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SUNAMERICA SERIES TRUST
"DOGS" OF WALL STREET
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
COMMON STOCK -- 97.0% SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 18.8%
Automotive -- 6.6%
General Motors Corp. ....................................... 33,129 $ 2,319,030
Genuine Parts Co. .......................................... 59,352 1,954,906
Retail -- 12.2%
International Flavors & Fragrances, Inc. ................... 36,261 1,518,429
Limited, Inc. .............................................. 79,017 2,286,555
May Department Stores Co. .................................. 38,204 2,304,179
Winn Dixie Stores, Inc. .................................... 46,081 1,857,640
------------
12,240,739
------------
CONSUMER STAPLES -- 20.6%
Food, Beverage & Tobacco -- 13.2%
Anheuser-Busch Cos., Inc. .................................. 45,755 2,773,897
Kellogg Co. ................................................ 40,580 1,486,242
Philip Morris Cos., Inc. ................................... 44,481 2,488,156
UST, Inc. .................................................. 54,532 1,894,987
Household Products -- 7.4%
Kimberly-Clark Corp. ....................................... 40,804 2,147,310
Rubbermaid, Inc. ........................................... 80,587 2,664,408
------------
13,455,000
------------
ENERGY -- 9.8%
Energy Sources -- 9.8%
Chevron Corp. .............................................. 26,108 2,183,282
Exxon Corp. ................................................ 32,885 2,468,430
Royal Dutch Petroleum Co. GDR .............................. 37,136 1,745,392
------------
6,397,104
------------
FINANCE -- 2.9%
Financial Services -- 2.9%
Morgan (J.P.) & Co., Inc. .................................. 17,798 1,902,161
------------
HEALTHCARE -- 4.3%
Drugs -- 4.3%
American Home Products Corp. ............................... 52,646 2,803,400
------------
INDUSTRIAL & COMMERCIAL -- 10.5%
Business Services -- 10.5%
Bemis Co., Inc. ............................................ 45,679 1,727,237
Foster Wheeler Corp. ....................................... 74,446 1,274,888
National Service Industries, Inc. .......................... 40,612 1,568,638
Pall Corp. ................................................. 97,431 2,265,271
------------
6,836,034
------------
INFORMATION & ENTERTAINMENT -- 3.7%
Entertainment Products -- 3.7%
Eastman Kodak Co. .......................................... 33,233 2,411,470
------------
</TABLE>
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<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY -- 7.5%
Electronics -- 3.5%
Emerson Electric Co. ....................................... 35,648 $ 2,317,120
Telecommunications -- 4.0%
ALLTEL Corp. ............................................... 49,046 2,599,438
------------
4,916,558
------------
MATERIALS -- 11.7%
Chemicals -- 5.6%
du Pont (E.I.) de Nemours & Co. ............................ 33,498 1,968,007
Nalco Chemical Co. ......................................... 50,905 1,702,136
Forest Products -- 3.1%
International Paper Co. .................................... 46,696 2,028,358
Multi-Industry -- 3.0%
Minnesota Mining & Manufacturing Co. ....................... 24,486 1,966,532
------------
7,665,033
------------
UTILITIES -- 7.2%
Telephone -- 7.2%
AT&T Corp. ................................................. 32,821 2,045,159
SBC Communications, Inc. ................................... 55,003 2,636,706
------------
4,681,865
------------
TOTAL INVESTMENT SECURITIES (cost $61,781,639).............. 63,309,364
------------
PRINCIPAL
REPURCHASE AGREEMENT -- 1.7% AMOUNT
----------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 1.7%
Joint Repurchase Agreement Account (Note 3)
(cost $1,147,000)......................................... $ 1,147,000 1,147,000
------------
TOTAL INVESTMENTS --
(cost $62,928,639) 98.7% 64,456,364
Other assets less liabilities -- 1.3 826,817
------ ------------
NET ASSETS -- 100.0% $65,283,181
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
GDR -- Global Depository Receipt
See Notes to Financial Statements
---------------------
69
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PUTNAM GROWTH PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
COMMON STOCK -- 96.3% SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 16.0%
Apparel & Textiles -- 0.5%
Gap, Inc. .................................................. 28,000 $ 2,059,750
Housing -- 2.3%
Home Depot, Inc. ........................................... 138,900 6,910,275
Masco Corp. ................................................ 80,700 2,330,212
Retail -- 13.2%
Costco Cos., Inc.+.......................................... 117,200 7,354,300
CVS Corp. .................................................. 213,200 10,526,750
Kroger Co.+................................................. 33,600 1,782,900
McKesson Corp. ............................................. 19,100 1,359,681
Safeway, Inc.+.............................................. 127,600 6,738,875
TJX Cos., Inc. ............................................. 211,600 5,422,250
Wal-Mart Stores, Inc. ...................................... 169,800 12,788,063
Walgreen Co. ............................................... 122,300 6,565,981
-------------
63,839,037
-------------
CONSUMER STAPLES -- 6.0%
Food, Beverage & Tobacco -- 3.3%
Philip Morris Cos., Inc. ................................... 139,800 7,820,062
Quaker Oats Co. ............................................ 41,600 2,553,200
Sara Lee Corp. ............................................. 50,600 2,953,775
Household Products -- 2.7%
Clorox Co. ................................................. 22,800 2,532,225
Colgate-Palmolive Co. ...................................... 53,900 4,615,188
Estee Lauder Cos., Inc., Class A............................ 46,400 3,482,900
-------------
23,957,350
-------------
ENERGY -- 2.0%
Energy Sources -- 2.0%
Exxon Corp. ................................................ 105,100 7,889,069
-------------
FINANCE -- 13.7%
Banks -- 2.9%
Charter One Financial, Inc. ................................ 21,000 623,437
Comerica, Inc. ............................................. 52,700 3,399,150
Fifth Third Bancorp......................................... 46,950 3,116,306
Firstar Corp. .............................................. 57,848 4,237,366
SouthTrust Corp. ........................................... 4,150 152,513
Financial Services -- 7.4%
American Express Co. ....................................... 27,000 2,701,687
Associates First Capital Corp., Class A..................... 24,500 1,907,938
Federal Home Loan Mortgage Corp. ........................... 153,000 9,256,500
MBNA Corp. ................................................. 215,787 4,895,668
Merrill Lynch & Co., Inc. .................................. 29,800 2,235,000
Providian Financial Corp. .................................. 21,400 1,964,787
Wells Fargo Co. ............................................ 187,800 6,760,800
</TABLE>
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<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance -- 3.4%
American General Corp. ..................................... 105,800 $ 7,452,288
American International Group, Inc. ......................... 65,375 6,145,250
-------------
54,848,690
-------------
HEALTHCARE -- 14.4%
Drugs -- 12.4%
Bristol-Myers Squibb Co. ................................... 70,200 8,603,887
Cardinal Health, Inc., Class A.............................. 52,800 3,623,400
Centocor, Inc.+............................................. 47,000 1,903,500
Lilly (Eli) & Co. .......................................... 75,700 6,789,344
Pfizer, Inc. ............................................... 70,800 7,903,050
Schering-Plough Corp. ...................................... 97,000 10,318,375
Warner-Lambert Co. ......................................... 136,800 10,328,400
Health Services -- 0.8%
IMS Health, Inc. ........................................... 47,100 3,126,263
Medical Products -- 1.2%
Johnson & Johnson Co. ...................................... 59,900 4,866,875
-------------
57,463,094
-------------
INDUSTRIAL & COMMERCIAL -- 7.5%
Aerospace & Military Technology -- 0.3%
United Technologies Corp. .................................. 9,900 1,061,156
Business Services -- 1.6%
Quintiles Transnational Corp.+.............................. 39,400 1,965,075
Waste Management, Inc. ..................................... 99,100 4,248,913
Electrical Equipment -- 2.5%
General Electric Co. ....................................... 111,300 10,072,650
Multi-Industry -- 3.1%
Tyco International Ltd. .................................... 188,400 12,399,075
-------------
29,746,869
-------------
INFORMATION & ENTERTAINMENT -- 6.9%
Broadcasting & Media -- 5.4%
Fox Entertainment Group, Inc. .............................. 24,500 578,813
Interpublic Group of Cos., Inc. ............................ 77,100 5,300,625
Time Warner, Inc. .......................................... 93,000 9,834,750
Viacom, Inc., Class B NV+................................... 86,500 5,757,656
Leisure & Tourism -- 1.5%
Carnival Corp., Class A..................................... 123,100 4,246,950
Tricon Global Restaurants, Inc.+............................ 41,400 1,886,287
-------------
27,605,081
-------------
INFORMATION TECHNOLOGY -- 23.3%
Communication Equipment -- 0.2%
3Com Corp.+................................................. 16,300 630,606
Computers & Business Equipment -- 8.1%
Cisco Systems, Inc.+........................................ 50,350 3,795,131
Computer Sciences Corp.+.................................... 58,800 3,358,950
Dell Computer Corp.+........................................ 52,000 3,162,250
EMC Corp.+.................................................. 83,000 6,017,500
International Business Machines Corp. ...................... 60,600 9,999,000
Pitney Bowes, Inc. ......................................... 56,100 3,141,600
Sun Microsystems, Inc.+..................................... 37,800 2,799,563
</TABLE>
---------------------
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<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Electronics -- 2.6%
Intel Corp. ................................................ 80,900 $ 8,706,862
Micron Technology, Inc.+.................................... 42,200 1,743,388
Software -- 7.5%
America Online, Inc.+....................................... 35,400 3,099,713
BMC Software, Inc.+......................................... 98,900 5,050,081
Compuware Corp.+............................................ 58,100 3,616,725
HBO & Co. .................................................. 189,000 4,713,187
Microsoft Corp.+............................................ 109,300 13,334,600
Telecommunications -- 4.9%
AirTouch Communications, Inc.+.............................. 44,000 2,516,250
Ascend Communications, Inc.+................................ 61,100 3,433,056
Lucent Technologies, Inc. .................................. 58,900 5,069,081
Tele-Communications TCI Ventures Group, Series A+........... 179,800 3,562,288
Tele-Communications, Inc., Class A+......................... 122,000 5,154,500
-------------
92,904,331
-------------
UTILITIES -- 6.5%
Electric Utilities -- 0.9%
PECO Energy Co. ............................................ 91,800 3,683,475
Telephone -- 5.6%
MCI WorldCom, Inc.+......................................... 159,200 9,392,800
SBC Communications, Inc. ................................... 133,400 6,394,863
Sprint Corp. ............................................... 87,100 6,336,525
-------------
25,807,663
-------------
TOTAL INVESTMENT SECURITIES (cost $289,183,880)............. 384,061,184
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 0.7% AMOUNT
-----------------------------------------------------------------------------------------
<S> <C> <C>
FEDERAL AGENCY OBLIGATIONS -- 0.7%
Federal Home Loan Mortgage Discount Notes 5.04% due 1/22/99
(cost $2,581,072)......................................... $ 2,600,000 2,581,072
-------------
REPURCHASE AGREEMENT -- 2.9%
-----------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 2.9%
Agreement with SBC Warburg, bearing interest at 5.30%, dated
11/30/98, to be repurchased 12/01/98 in the amount of
$11,657,716 and collateralized by $7,272,000 of U.S.
Treasury Notes, bearing interest at 10.625%, due 08/15/15
and having an approximate aggregate value of $11,935,485
(cost $11,656,000)........................................ 11,656,000 11,656,000
-------------
TOTAL INVESTMENTS --
(cost $303,420,952)
99.9% 398,298,256
Other assets less liabilities -- 0.1 564,959
------ -------------
NET ASSETS -- 100.0% $398,863,215
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
See Notes to Financial Statements
- ---------------------
72
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SUNAMERICA SERIES TRUST
GROWTH/PHOENIX INVESTMENT
COUNSEL PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
COMMON STOCK -- 97.6% SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY -- 11.0%
Housing -- 1.7%
Home Depot, Inc. ........................................... 79,000 $ 3,930,250
Retail -- 9.3%
Borders Group, Inc.+........................................ 56,400 1,367,700
CVS Corp. .................................................. 92,900 4,586,938
Fred Meyer, Inc.+........................................... 66,250 3,370,469
Rite Aid Corp. ............................................. 110,500 5,124,437
Safeway, Inc.+.............................................. 111,800 5,904,437
Wal-Mart Stores, Inc. ...................................... 24,600 1,852,688
-------------
26,136,919
-------------
CONSUMER STAPLES -- 4.8%
Food, Beverage & Tobacco -- 2.6%
Anheuser-Busch Cos., Inc. .................................. 40,400 2,449,250
PepsiCo, Inc. .............................................. 96,400 3,729,475
Household Products -- 2.2%
Clorox Co. ................................................. 8,400 932,925
Colgate-Palmolive Co. ...................................... 12,900 1,104,562
Procter & Gamble Co. ....................................... 36,800 3,224,600
-------------
11,440,812
-------------
ENERGY -- 5.3%
Energy Services -- 1.0%
Halliburton Co. ............................................ 34,500 1,013,438
Schlumberger Ltd. .......................................... 21,500 960,781
Transocean Offshore, Inc. .................................. 17,100 422,156
Energy Sources -- 4.3%
Amoco Corp. ................................................ 100,600 5,929,112
USX-Marathon Group, Inc. ................................... 149,500 4,242,063
-------------
12,567,550
-------------
FINANCE -- 14.3%
Banks -- 4.7%
Bank One Corp. ............................................. 88,636 4,548,135
BankAmerica Corp. .......................................... 56,519 3,684,332
Mellon Bank Corp. .......................................... 26,800 1,686,725
U.S. Bancorp................................................ 37,100 1,365,744
Financial Services -- 7.6%
Capital One Financial Corp. ................................ 28,900 3,179,000
Citigroup, Inc. ............................................ 63,400 3,181,887
Federal Home Loan Mortgage Corp. ........................... 91,300 5,523,650
Morgan Stanley, Dean Witter & Co. .......................... 43,800 3,055,050
ReliaStar Financial Corp. .................................. 25,000 1,175,000
Wells Fargo Co. ............................................ 58,400 2,102,400
</TABLE>
---------------------
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance -- 2.0%
American International Group, Inc. ......................... 34,300 $ 3,224,200
UNUM Corp. ................................................. 27,500 1,481,563
-------------
34,207,686
-------------
HEALTHCARE -- 17.9%
Drugs -- 14.0%
Bristol-Myers Squibb Co. ................................... 53,300 6,532,581
Cardinal Health, Inc., Class A.............................. 54,600 3,746,925
Elan Corp. PLC ADR+......................................... 24,400 1,662,250
Pfizer, Inc. ............................................... 65,000 7,255,625
Schering-Plough Corp. ...................................... 53,400 5,680,425
Warner-Lambert Co. ......................................... 81,900 6,183,450
Watson Pharmaceuticals, Inc.+............................... 43,200 2,327,400
Medical Products -- 3.9%
Baxter International, Inc. ................................. 49,900 3,171,769
Becton Dickinson & Co. ..................................... 25,000 1,062,500
Genzyme Corp.+.............................................. 26,200 1,102,038
Genzyme Molecular Oncology+................................. 1 3
Medtronic, Inc. ............................................ 57,200 3,871,725
-------------
42,596,691
-------------
INDUSTRIAL & COMMERCIAL -- 6.6%
Business Services -- 2.0%
ServiceMaster Co. .......................................... 52,600 1,130,900
Waste Management, Inc. ..................................... 84,400 3,618,650
Electrical Equipment -- 2.6%
General Electric Co. ....................................... 67,200 6,081,600
Multi-Industry -- 2.0%
Tyco International Ltd. .................................... 73,400 4,830,637
-------------
15,661,787
-------------
INFORMATION & ENTERTAINMENT -- 1.5%
Broadcasting & Media -- 1.5%
CBS Corp. .................................................. 40,100 1,195,481
Chancellor Media Corp.+..................................... 32,400 1,221,075
Clear Channel Communications, Inc.+......................... 24,900 1,164,075
-------------
3,580,631
-------------
INFORMATION TECHNOLOGY -- 31.3%
Communication Equipment -- 0.7%
Tellabs, Inc.+.............................................. 30,100 1,627,281
Computers & Business Equipment -- 7.8%
Cisco Systems, Inc.+........................................ 44,075 3,322,153
EMC Corp.+.................................................. 62,300 4,516,750
International Business Machines Corp. ...................... 50,400 8,316,000
Staples, Inc.+.............................................. 75,250 2,629,047
Electronics -- 5.1%
Intel Corp. ................................................ 92,100 9,912,263
Micron Technology, Inc.+.................................... 27,300 1,127,831
Tandy Corp. ................................................ 24,500 1,104,031
Software -- 12.4%
Amazon.com, Inc.+........................................... 3,300 633,600
America Online, Inc.+....................................... 37,900 3,318,619
BMC Software, Inc.+......................................... 65,000 3,319,062
Compuware Corp.+............................................ 82,700 5,148,075
</TABLE>
- ---------------------
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Software (continued)
HBO & Co. .................................................. 122,600 $ 3,057,338
J.D. Edwards & Co.+......................................... 32,100 1,115,475
Microsoft Corp.+............................................ 72,800 8,881,600
Oracle Corp.+............................................... 68,200 2,335,850
Sterling Commerce, Inc.+.................................... 34,100 1,236,125
Yahoo!, Inc.+............................................... 2,600 499,200
Telecommunications -- 5.3%
AirTouch Communications, Inc.+.............................. 117,200 6,702,375
Liberty Media Group, Series A+.............................. 58,950 2,376,422
Tele-Communications, Inc., Class A+......................... 84,400 3,565,900
-------------
74,744,997
-------------
UTILITIES -- 4.9%
Telephone -- 4.9%
AT&T Corp. ................................................. 51,000 3,177,938
BellSouth Corp. ............................................ 30,900 2,696,025
MCI WorldCom, Inc.+......................................... 64,504 3,805,736
SBC Communications, Inc. ................................... 41,900 2,008,581
-------------
11,688,280
-------------
TOTAL INVESTMENT SECURITIES (cost $182,821,412)............. 232,625,353
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 3.0% AMOUNT
----------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 2.3%
Receivables Capital Corp. 5.00% due 12/01/98................ $2,795,000 2,795,000
Receivables Capital Corp. 5.36% due 12/01/98................ 2,580,000 2,580,000
-------------
5,375,000
-------------
FEDERAL AGENCY OBLIGATIONS -- 0.7%
Federal Home Loan Bank Discount Notes 4.72% due 12/02/98.... 1,800,000 1,799,764
-------------
TOTAL SHORT-TERM SECURITIES (cost $7,174,764)............... 7,174,764
-------------
TOTAL INVESTMENTS --
(cost $189,996,176) 100.6% 239,800,117
Liabilities in excess of other assets -- (0.6) (1,501,645)
------ -------------
NET ASSETS -- 100.0% $238,298,472
====== =============
</TABLE>
-----------------------------
+ Non-income producing Securities
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
75
<PAGE> 77
- ---------------------
SUNAMERICA SERIES TRUST
ALLIANCE GROWTH PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
COMMON STOCK -- 99.0% SHARES VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 15.9%
Housing -- 5.6%
Home Depot, Inc. ........................................... 1,517,900 $ 75,515,525
Lowe's Cos., Inc. .......................................... 43,100 1,820,975
Retail -- 10.3%
Dayton Hudson Corp. ........................................ 1,095,900 49,315,500
Kohl's Corp.+............................................... 430,600 21,180,137
Kroger Co.+................................................. 208,200 11,047,613
Rite Aid Corp. ............................................. 305,700 14,176,838
Wal-Mart Stores, Inc. ...................................... 642,500 48,388,281
---------------
221,444,869
---------------
CONSUMER STAPLES -- 4.2%
Food, Beverage & Tobacco -- 3.0%
Coca-Cola Co. .............................................. 100,700 7,055,294
Philip Morris Cos., Inc. ................................... 621,700 34,776,343
Household Products -- 1.2%
Colgate-Palmolive Co. ...................................... 124,200 10,634,625
Gillette Co. ............................................... 131,300 6,031,594
---------------
58,497,856
---------------
FINANCE -- 19.1%
Banks -- 3.7%
BankAmerica Corp. .......................................... 378,300 24,660,431
Fifth Third Bancorp......................................... 93,400 6,199,425
U.S. Bancorp................................................ 547,600 20,158,525
Financial Services -- 13.3%
Associates First Capital Corp., Class A..................... 461,831 35,965,089
Citigroup, Inc. ............................................ 368,050 18,471,509
Federal Home Loan Mortgage Corp. ........................... 355,400 21,501,700
Federal National Mortgage Association....................... 258,700 18,820,425
MBNA Corp. ................................................. 1,758,900 39,905,044
Morgan Stanley, Dean Witter & Co. .......................... 293,100 20,443,725
Washington Mutual, Inc. .................................... 779,364 30,200,355
Insurance -- 2.1%
American International Group, Inc. ......................... 86,900 8,168,600
General Reinsurance Corp.+.................................. 27,400 6,397,900
Progressive Corp. .......................................... 104,100 15,445,838
---------------
266,338,566
---------------
HEALTHCARE -- 13.5%
Drugs -- 12.4%
Bristol-Myers Squibb Co. ................................... 386,100 47,321,381
Merck & Co., Inc. .......................................... 88,100 13,644,488
Pfizer, Inc. ............................................... 499,700 55,779,012
Schering-Plough Corp. ...................................... 422,000 44,890,250
Warner-Lambert Co. ......................................... 146,800 11,083,400
</TABLE>
- ---------------------
76
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE (continued)
Health Services -- 1.1%
IMS Health, Inc. ........................................... 232,700 $ 15,445,463
---------------
188,163,994
---------------
INDUSTRIAL & COMMERCIAL -- 7.3%
Aerospace & Military Technology -- 1.1%
United Technologies Corp. .................................. 139,400 14,941,937
Electrical Equipment -- 1.6%
General Electric Co. ....................................... 245,600 22,226,800
Multi-Industry -- 4.6%
Tyco International Ltd. .................................... 988,400 65,049,075
---------------
102,217,812
---------------
INFORMATION & ENTERTAINMENT -- 3.2%
Broadcasting & Media -- 0.6%
Gannett Co., Inc. .......................................... 120,700 7,792,694
Leisure & Tourism -- 2.6%
Delta Air Lines, Inc. ...................................... 112,000 6,013,000
Northwest Airlines Corp., Class A+.......................... 496,800 12,451,050
UAL Corp.+.................................................. 286,800 18,265,575
---------------
44,522,319
---------------
INFORMATION TECHNOLOGY -- 33.8%
Communication Equipment -- 5.8%
Nokia Corp., Class A ADR.................................... 832,400 81,575,200
Computers & Business Equipment -- 12.4%
Cisco Systems, Inc.+........................................ 921,200 69,435,450
Compaq Computer Corp. ...................................... 99,400 3,230,500
Dell Computer Corp.+........................................ 1,135,300 69,040,431
EMC Corp.+.................................................. 431,100 31,254,750
Electronics -- 2.7%
Intel Corp. ................................................ 352,100 37,894,762
Software -- 4.8%
America Online, Inc.+....................................... 95,300 8,344,706
HBO & Co. .................................................. 821,700 20,491,144
Microsoft Corp.+............................................ 311,500 38,003,000
Telecommunications -- 8.1%
AirTouch Communications, Inc.+.............................. 1,209,300 69,156,844
Liberty Media Group, Series A+.............................. 647,900 26,118,469
Lucent Technologies, Inc. .................................. 167,200 14,389,650
Tele-Communications, Inc., Class A+......................... 63,700 2,691,325
---------------
471,626,231
---------------
UTILITIES -- 2.0%
Telephone -- 2.0%
MCI WorldCom, Inc.+......................................... 484,700 28,597,300
---------------
TOTAL INVESTMENT SECURITIES (cost $1,118,106,141)........... 1,381,408,947
---------------
</TABLE>
---------------------
77
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<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 2.1% AMOUNT VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 2.1%
Cayman Island Time Deposit with State Street Bank & Trust
Co. 4.50% due 12/01/98@................................... $29,405,000 $ 29,405,000
U.S. GOVERNMENT -- 0.0%
United States Treasury Bills 4.45% due 12/17/98............. 50,000 49,901
United States Treasury Bills 4.62% due 12/17/98@............ 320,000 319,343
---------------
TOTAL SHORT-TERM SECURITIES (cost $29,774,244).............. 29,774,244
---------------
TOTAL INVESTMENTS --
(cost $1,147,880,385) 101.1% 1,411,183,191
Liabilities in excess of other assets -- (1.1) (15,043,171)
------ ---------------
NET ASSETS -- 100.0% $1,396,140,020
====== ===============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
@ The security or a portion thereof represents collateral for the
following open futures contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
----------------------------------------------------------------------------------------------------------
NUMBER OF EXPIRATION VALUE AT VALUE AS OF UNREALIZED
CONTRACTS DESCRIPTION DATE TRADE DATE NOVEMBER 30, 1998 APPRECIATION
-----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
24 Long Standard & Poor's 500 Index.... December 1998 $6,217,500 $6,975,000 $757,500
========
</TABLE>
See Notes to Financial Statements
- ---------------------
78
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- ---------------------
SUNAMERICA SERIES TRUST
GLOBAL EQUITIES PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
COMMON STOCK -- 94.0% SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRALIA -- 0.2%
Coca-Cola Amatil Ltd. (Consumer Staples).................... 202,700 $ 681,156
-------------
BRAZIL -- 0.4%
Telecomunicacoes Brasileiras SA -- Telebras ADR
(Information Technology)+................................. 17,000 1,611,813
-------------
CANADA -- 0.7%
Northern Telecom Ltd. (Information Technology).............. 65,200 3,044,025
-------------
DENMARK -- 0.4%
Ratin AS, Class B (Multi-industry).......................... 7,900 1,476,120
-------------
FINLAND -- 2.7%
Enso OY, Series R (Materials)............................... 186,400 1,644,121
Nokia Corp., Class A ADR (Information Technology)+.......... 93,638 9,166,849
Orion-Yhtyma OY, Class B (Healthcare)....................... 29,398 669,626
-------------
11,480,596
-------------
FRANCE -- 5.9%
Assurances Generales de France (Finance)+................... 32,000 1,895,521
Banque Nationale de Paris (Finance)+........................ 50,000 3,823,033
Carrefour SA (Consumer Discretionary)....................... 3,675 2,599,992
Compagnie de St. Gobain (Materials)......................... 18,786 2,773,719
Compagnie Francaise d' Etudes de Construction Technip
(Industrial & Commercial)................................. 26,000 2,202,770
Sanofi SA (Healthcare)...................................... 2,800 499,543
Schneider SA (Industrial & Commercial)+..................... 41,200 2,531,006
Suez Lyonnaise des Eaux (Multi-industry).................... 25,000 4,934,789
Valeo SA (Consumer Discretionary)........................... 43,400 3,715,074
-------------
24,975,447
-------------
GERMANY -- 1.3%
BASF AG (Materials)......................................... 30,000 1,135,312
Merck KGAA (Healthcare)..................................... 61,680 2,508,721
Schmalbach-Lubeca AG (Materials)............................ 13,658 1,968,453
-------------
5,612,486
-------------
GREECE -- 0.1%
Panafon Hellenic Telecom SA GDR (Information Technology)+... 33,800 611,104
-------------
HONG KONG -- 0.3%
China Telecom (Hong Kong) Ltd. (Information Technology)+.... 562,000 1,121,387
-------------
INDIA -- 0.4%
Mahanagar Telephone Nigam Ltd. GDR (Information
Technology)+.............................................. 57,000 602,775
Videsh Sanchar Nigam Ltd. GDR (Information Technology)+..... 104,000 1,063,400
-------------
1,666,175
-------------
</TABLE>
---------------------
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
IRELAND -- 0.6%
CRH PLC (Industrial & Commercial)........................... 165,400 $ 2,496,293
-------------
ITALY -- 2.0%
Banca di Roma (Finance)+.................................... 1,800,000 3,112,963
ENI SpA (Energy)............................................ 389,000 2,411,927
UniCredito Italiano SpA (Finance)........................... 480,000 2,727,549
-------------
8,252,439
-------------
JAPAN -- 8.8%
Bridgestone Corp. (Consumer Discretionary).................. 108,000 2,524,675
Canon, Inc. (Information Technology)........................ 90,000 1,987,013
Credit Saison Co., Ltd. (Finance)........................... 60,000 1,368,507
Daito Trust Construction Co. (Industrial & Commercial)...... 125,130 1,013,634
Daiwa Securities Co., Ltd. (Finance)........................ 600,000 2,137,987
FamilyMart Co., Ltd. (Consumer Discretionary)............... 77,200 3,740,942
Fuji Photo Film Co., Ltd. (Information & Entertainment)..... 90,000 3,360,390
Honda Motor Co., Ltd. (Consumer Discretionary).............. 81,000 2,906,007
Japan Tobacco, Inc. (Consumer Staples)...................... 368 3,225,974
KAO Corp. (Consumer Staples)................................ 89,000 1,683,198
Nintendo Co., Ltd. (Information & Entertainment)............ 16,100 1,491,080
Rohm Co., Ltd. (Information Technology)..................... 12,200 1,029,870
Takeda Chemical Industries Ltd. (Healthcare)................ 91,000 3,065,341
TDK Corp. (Information Technology).......................... 30,000 2,486,201
Yamanouchi Pharmaceutical Co., Ltd. (Healthcare)............ 172,000 5,025,974
-------------
37,046,793
-------------
KOREA -- 0.1%
Korea Fund, Inc. (Finance).................................. 64,200 505,575
-------------
MEXICO -- 0.4%
Fomento Economico Mexicano SA de CV, Class B ADR
(Consumer Staples)........................................ 62,000 1,472,500
-------------
NETHERLANDS -- 4.2%
Akzo Nobel NV (Materials)................................... 54,240 2,223,427
Equant NV (Information Technology)+......................... 63,900 3,606,356
ING Groep NV (Finance)...................................... 83,000 4,752,033
Koninklijke Ahold NV (Consumer Discretionary)............... 102,800 3,563,640
Philips Electronics NV (Information Technology)............. 19,400 1,227,367
Wolters Kluwer NV (Information & Entertainment)+............ 12,400 2,363,232
-------------
17,736,055
-------------
SPAIN -- 3.9%
Banco de Santander SA (Finance)............................. 2 41
Endesa SA (Utilities)....................................... 128,000 3,338,552
Repsol SA (Energy).......................................... 72,000 4,080,083
Tabacalera SA, Series A (Consumer Staples).................. 233,590 5,777,044
Telefonica de Espana SA (Utilities)......................... 72,000 3,381,780
-------------
16,577,500
-------------
SWEDEN -- 2.2%
Astra AB, Class A (Healthcare).............................. 160,000 2,929,467
Autoliv, Inc. ADR (Consumer Discretionary).................. 90,000 3,245,883
ForeningsSparbanken AB, Class A (Finance)................... 105,000 2,941,755
-------------
9,117,105
-------------
</TABLE>
- ---------------------
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
SWITZERLAND -- 3.9%
Nestle SA (Consumer Staples)+............................... 810 $ 1,682,303
Novartis AG (Healthcare).................................... 2,600 4,878,608
Schindler Holding AG (Industrial & Commercial).............. 350 576,524
Schindler Holding registered AG (Industrial & Commercial)... 960 1,498,818
Schweizerische Rueckversicherungs-Gesellschaft
(Consumer Discretionary)+................................. 970 2,450,877
Zurich Allied AG (Finance)+................................. 7,380 5,269,541
-------------
16,356,671
-------------
UNITED KINGDOM -- 8.2%
Bank of Scotland (Finance).................................. 313,596 3,465,646
Beazer Group PLC (Industrial & Commercial).................. 532,000 1,513,700
British Aerospace PLC (Industrial & Commercial)............. 238,500 2,049,581
British Airways PLC (Information & Entertainment)........... 406,907 2,751,807
Diageo PLC (Consumer Staples)............................... 264,992 2,967,847
Dixons Group PLC (Information Technology)................... 236,200 2,871,351
Kingfisher PLC (Consumer Discretionary)..................... 198,944 1,896,696
Ladbroke Group PLC (Information & Entertainment)............ 418,289 1,617,924
Orange PLC (Information Technology)+........................ 165,000 1,687,387
Reuters Group PLC (Information & Entertainment)............. 125,000 1,207,191
Tomkins PLC (Multi-industry)................................ 720,395 3,338,996
United News & Media PLC (Information & Entertainment)....... 117,000 1,129,930
Vodafone Group PLC (Information Technology)................. 225,000 3,321,578
Whitbread PLC (Consumer Staples)............................ 204,410 2,764,744
Williams PLC (Multi-industry)............................... 307,200 1,900,165
-------------
34,484,543
-------------
UNITED STATES -- 47.3%
AES Corp. (Utilities)....................................... 141,000 6,450,750
America Online, Inc. (Information Technology)+.............. 24,000 2,101,500
American International Group, Inc. (Finance)................ 50,550 4,751,700
Avon Products, Inc. (Consumer Discretionary)................ 103,000 4,184,375
Bank One Corp. (Finance).................................... 99,800 5,120,988
BankAmerica Corp. (Finance)................................. 92,000 5,997,250
Bristol-Myers Squibb Co. (Healthcare)....................... 73,000 8,947,062
Cardinal Health, Inc., Class A (Healthcare)................. 31,000 2,127,375
Carnival Corp., Class A (Information & Entertainment)....... 145,000 5,002,500
Chase Manhattan Corp. (Finance)............................. 82,000 5,201,875
Cisco Systems, Inc. (Information Technology)+............... 59,000 4,447,125
Citigroup, Inc. (Finance)................................... 86,599 4,346,187
COMPAQ Computer, Corp. (Information Technology)+............ 91,100 2,960,750
Computer Sciences Corp. (Information Technology)+........... 29,600 1,690,900
Dayton Hudson Corp. (Consumer Discretionary)................ 98,900 4,450,500
Dell Computer Corp. (Information Technology)+............... 96,400 5,862,325
Fleet Financial Group, Inc. (Finance)....................... 45,000 1,875,938
Harley-Davidson, Inc. (Consumer Discretionary).............. 98,800 4,131,075
Hartford Life, Inc. Class A (Finance)....................... 61,500 3,370,969
HBO & Co. (Information Technology).......................... 183,000 4,563,563
Home Depot, Inc. (Consumer Discretionary)................... 100,200 4,984,950
Household International, Inc. (Finance)..................... 89,720 3,510,295
Humana, Inc. (Healthcare)................................... 183,300 3,631,631
Kroger Co. (Consumer Discretionary)+........................ 113,000 5,996,062
Liberty Media Group, Series A (Information Technology)+..... 170,825 6,886,383
MBIA, Inc. (Finance)........................................ 68,000 4,403,000
MBNA Corp. (Finance)........................................ 181,987 4,128,830
MCI WorldCom, Inc. (Utilities)+............................. 109,300 6,448,700
Microsoft Corp. (Information Technology)+................... 30,000 3,660,000
Morgan Stanley, Dean Witter & Co. (Finance)................. 50,000 3,487,500
Nautica Enterprises, Inc. (Consumer Discretionary)+......... 179,500 3,533,906
</TABLE>
---------------------
81
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (continued)
Philip Morris Cos., Inc. (Consumer Staples)................. 158,000 $ 8,838,125
PMI Group, Inc. (Finance)................................... 54,300 2,969,531
Rite Aid Corp. (Consumer Discretionary)..................... 41,600 1,929,200
Sanmina Corp. (Information Technology)+..................... 113,000 5,628,813
Schering-Plough Corp. (Healthcare).......................... 51,500 5,478,313
Solectron Corp. (Information Technology)+................... 105,200 6,962,925
Staples, Inc. (Information Technology)+..................... 98,000 3,423,875
TJX Cos., Inc. (Consumer Discretionary)..................... 141,000 3,613,125
Tyco International Ltd. (Industrial & Commercial)........... 107,000 7,041,937
Tyson Foods, Inc., Class A (Consumer Staples)............... 40,000 827,500
United Technologies Corp. (Industrial & Commercial)......... 46,000 4,930,625
USX-Marathon Group, Inc. (Energy)........................... 79,000 2,241,625
Warner-Lambert Co. (Healthcare)............................. 45,600 3,442,800
Waste Management, Inc. (Industrial & Commercial)............ 78,200 3,352,825
-------------
198,937,183
-------------
TOTAL COMMON STOCK (cost $339,971,797)...................... 395,262,966
-------------
<CAPTION>
PREFERRED STOCK -- 0.5%
-----------------------------------------------------------------------------------------
<S> <C> <C>
GERMANY -- 0.5%
Henkel KGaA (Multi-industry) (cost $1,779,489).............. 21,960 1,857,561
-------------
TOTAL INVESTMENT SECURITIES (cost $341,751,286)............. 397,120,527
-------------
PRINCIPAL
SHORT-TERM SECURITIES -- 4.0% AMOUNT
-----------------------------------------------------------------------------------------
TIME DEPOSIT -- 4.0%
Cayman Island Time Deposit with State Street Bank & Trust
Co.
4.50% due 12/01/98 (cost $16,854,000)..................... $16,854,000 16,854,000
-------------
TOTAL INVESTMENTS --
(cost $358,605,286) 98.5% 413,974,527
Other assets less liabilities -- 1.5 6,383,462
------ -------------
NET ASSETS -- 100.0% $420,357,989
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
- ---------------------
82
<PAGE> 84
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
--------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE DEPRECIATION
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
JPY 1,302,466,400 USD 9,749,000 12/17/98 $(852,319)
----------
Net Unrealized Depreciation................ $(852,319)
==========
</TABLE>
<TABLE>
<S> <C> <C>
JPY -- Japanese Yen
USD -- United States Dollar
</TABLE>
See Notes to Financial Statements
---------------------
83
<PAGE> 85
- ---------------------
SUNAMERICA SERIES TRUST
INTERNATIONAL GROWTH
& INCOME PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
COMMON STOCK -- 90.4% SHARES VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C>
ARGENTINA -- 1.2%
YPF Sociedad Anonima ADR (Energy)........................... 52,499 $ 1,548,721
-------------
AUSTRALIA -- 1.8%
Cable & Wireless Optus Ltd. (Information Technology)+*...... 80,100 149,986
Pioneer International Ltd. (Industrial & Commercial)+....... 657,000 1,395,351
St. George Bank Ltd. (Finance)*(1).......................... 16,300 806,850
-------------
2,352,187
-------------
BELGIUM -- 1.0%
Electrabel SA (Utilities)................................... 3,294 1,280,284
-------------
CANADA -- 3.9%
Abitibi Consolidated, Inc. (Materials)...................... 54,000 509,625
Abitibi Consolidated, Inc. (Materials)...................... 88,200 821,541
Bank of Nova Scotia (Finance)............................... 107,433 2,367,831
National Bank of Canada (Finance)........................... 86,877 1,359,145
-------------
5,058,142
-------------
FRANCE -- 9.9%
Assurances Generales de France (Finance)+................... 14,268 845,166
Michelin SA, Class B (Consumer Discretionary)............... 28,375 1,224,436
Scor (Finance).............................................. 10,215 652,667
Societe Generale d'Enterprises SA+ (Finance)+............... 9,471 1,491,601
Societe Nationale Elf Aquitaine SA (Energy)................. 20,675 2,576,562
STMicroelectronics NV (Information Technology).............. 34,916 2,442,622
Suez Lyonnaise des Eaux (Multi-industry).................... 3,423 675,671
Television Francais (Information & Entertainment)........... 3,407 595,860
Vivendi (Multi-industry).................................... 9,747 2,203,234
-------------
12,707,819
-------------
GERMANY -- 7.2%
Bayer AG (Multi-industry)................................... 24,133 990,101
Deutsche Bank AG (Finance)+................................. 15,665 966,799
Deutsche Telekom AG (Information Technology)................ 61,090 1,714,100
Hoechst AG (Materials)+..................................... 48,190 2,067,984
Thyssen AG+ (Industrial & Commercial)+...................... 5,174 933,269
VEBA AG (Utilities)......................................... 45,147 2,501,587
-------------
9,173,840
-------------
GREECE -- 1.1%
OTE Greek Telecommunications (Information Technology)....... 58,003 1,446,408
-------------
HONG KONG -- 0.9%
Dao Heng Bank Group Ltd. (Finance).......................... 403,000 1,176,262
-------------
</TABLE>
- ---------------------
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C>
INDIA -- 1.1%
Mahanagar Telephone Nigam Ltd. GDR (Information
Technology)+.............................................. 130,713 $ 1,382,290
-------------
IRELAND -- 1.8%
CRH PLC (Industrial & Commercial)........................... 154,111 2,336,428
-------------
ITALY -- 5.4%
ENI SpA (Energy)............................................ 454,908 2,820,579
Istituto Nazionale Delle Assicurazioni SpA (Finance)........ 424,694 1,120,044
Telecom Italia SpA (Information Technology)................. 368,167 2,981,939
-------------
6,922,562
-------------
JAPAN -- 12.2%
Advantest Corp. (Information Technology).................... 7,000 467,045
Canon, Inc. (Information Technology)........................ 35,000 772,727
Fuji Photo Film Co., Ltd. (Information & Entertainment)..... 34,000 1,269,481
Honda Motor Co., Ltd. (Consumer Discretionary).............. 40,000 1,435,065
Kirin Brewery Co., Ltd. (Consumer Staples).................. 142,000 1,473,020
Nikko Securities Co., Ltd. (Finance)........................ 650,000 2,194,805
Promise Co. (Finance)....................................... 48,360 2,276,688
Ricoh Co. Ltd. (Information Technology)..................... 146,000 1,404,302
Sankyo Co., Ltd. (Healthcare)............................... 62,000 1,409,091
Sony Corp. (Information Technology)......................... 28,300 2,069,667
Yamanouchi Pharmaceutical Co., Ltd. (Healthcare)............ 28,000 818,182
-------------
15,590,073
-------------
MEXICO -- 1.8%
Cemex SA de CV (Materials).................................. 284,600 689,490
Fomento Economico Mexicano SA de CV (Consumer Staples)+..... 709,726 1,662,588
-------------
2,352,078
-------------
NETHERLANDS -- 6.9%
ABN Amro Holdings NV (Finance).............................. 24,113 496,746
Akzo Nobel NV (Materials)................................... 68,492 2,807,651
ING Groep NV (Finance)...................................... 40,483 2,317,790
Philips Electronics NV (Information Technology)............. 50,134 3,171,794
-------------
8,793,981
-------------
NEW ZEALAND -- 1.0%
Telecommunications Corp. of New Zealand Ltd. ADR
(Information Technology).................................. 150,230 640,496
Telecommunications Corp. of New Zealand Ltd. IR
(Information Technology).................................. 317,513 680,191
-------------
1,320,687
-------------
NORWAY -- 0.8%
Den Norske Bank ASA (Finance)............................... 262,714 1,017,523
-------------
PORTUGAL -- 1.0%
Portugal Telecom SA (Information Technology)................ 28,927 1,256,083
-------------
SINGAPORE -- 1.3%
Development Bank of Singapore Ltd. (Finance)................ 220,100 1,667,930
-------------
</TABLE>
---------------------
85
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C>
SPAIN -- 2.7%
Iberdrola SA (Utilities).................................... 127,234 $ 2,106,611
Telefonica de Espana SA (Utilities)......................... 28,467 1,337,071
-------------
3,443,682
-------------
SWEDEN -- 5.1%
ForeningsSparbanken AB, Class A (Finance)................... 25,184 705,573
Pharmacia & Upjohn, Inc. ADR (Healthcare)................... 55,564 2,963,231
SKF AB, Series B+ (Materials)+.............................. 82,605 1,065,805
Svenska Cellulosa AB, Class B (Materials)................... 54,949 1,205,259
Volvo AB, Class B (Consumer Discretionary).................. 28,046 651,351
-------------
6,591,219
-------------
SWITZERLAND -- 5.3%
Julius Baer Holdings AG (Finance)........................... 519 1,683,786
Nestle SA (Consumer Staples)+............................... 464 963,690
Novartis AG (Healthcare).................................... 398 746,802
Swisscom AG (Utilities)+.................................... 3,939 1,325,883
UBS AG (Finance)+........................................... 6,968 2,095,939
-------------
6,816,100
-------------
UNITED KINGDOM -- 17.0%
Allied Zurich PLC (Finance)+................................ 139,383 1,988,680
Bass PLC (Consumer Staples)+................................ 182,655 2,518,702
British Airways PLC (Information & Entertainment)........... 81,030 547,985
British America Tobacco PLC (Consumer Staples)+............. 71,057 651,366
British Petroleum Co. PLC (Energy).......................... 108,752 1,697,840
BTR Ltd PLC (Multi-industry)................................ 972,963 1,990,018
Cookson Group PLC (Materials)............................... 590,024 1,294,375
HSBC Holdings PLC+ (Finance)+............................... 82,715 2,120,487
National Westminster Bank PLC (Finance)..................... 83,303 1,519,689
P & O Finance BV (Industrial & Commercial)+................. 49,698 602,511
Scottish & Newcastle PLC (Consumer Staples)................. 83,000 1,058,270
Scottish Power PLC (Utilities).............................. 102,496 1,087,068
Siebe PLC (Industrial & Commercial)......................... 520,548 1,873,933
Tomkins PLC (Multi-industry)................................ 457,272 2,119,434
Unilever NV PLC (Consumer Staples).......................... 67,392 700,862
-------------
21,771,220
-------------
TOTAL COMMON STOCK (cost $113,905,431)...................... 116,005,519
-------------
WARRANTS -- 0.0%+
----------------------------------------------------------------------------------------------
FRANCE -- 0.0%
Allianz AG (Finance)........................................ 1 8
-------------
TOTAL INVESTMENT SECURITIES (cost $113,905,431)............. 116,005,527
-------------
SHORT-TERM SECURITIES -- 6.2%
----------------------------------------------------------------------------------------------
CORPORATE SHORT-TERM NOTES -- 1.9%
Ciesco L.P. 5.07% due 12/09/98.............................. 2,500,000 2,497,183
-------------
</TABLE>
- ---------------------
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<TABLE>
<CAPTION>
SHORT-TERM SECURITIES (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C>
FEDERAL AGENCY OBLIGATIONS -- 4.3%
Federal Home Loan Bank Consolidated Discount Note 4.78% due
1/22/99................................................... 2,500,000 $ 2,482,739
Federal Home Loan Mortgage Discount Notes 5.04% due
1/22/99................................................... 3,000,000 2,978,160
-------------
5,460,899
-------------
TOTAL SHORT-TERM SECURITIES (cost $7,958,082)............... 7,958,082
-------------
PRINCIPAL
REPURCHASE AGREEMENT -- 4.4% AMOUNT
----------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 4.4%
Agreement with SBC Warburg, bearing interest at 5.30%, dated
11/30/98, to be repurchased 12/01/98 in the amount of
$5,698,839 and collateralized by $4,973,000 of U.S.
Treasury Notes, bearing interest at 6.50%, due 11/15/26
and having an appropriate aggregate value of $5,834,291
(cost $5,698,000)......................................... $ 5,698,000 5,698,000
-------------
TOTAL INVESTMENTS --
(cost $127,561,513) 101.0% 129,661,609
Liabilities in excess of other assets -- (1.0) (1,317,742)
------ -------------
NET ASSETS -- 100.0% $128,343,867
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
IR -- Installment Receipt
(1) Fair valued security; see Note 2
---------------------
87
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<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
--------------------------------------------------------------- GROSS
CONTRACT IN DELIVERY
TO DELIVER EXCHANGE FOR DATE UNREALIZED
APPRECIATION
---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*GBP 2,131,000 USD 3,559,836 3/22/99 $ 59,875
------------
</TABLE>
<TABLE>
<CAPTION>
GROSS UNREALIZED
APPRECIATION
----
---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*USD 1,797,616 GBP 1,065,500 3/22/99 (47,635)
*USD 1,808,665 GBP 1,065,500 3/22/99 (58,685)
*USD 2,649,758 JPY 307,666,700 3/15/99 (115,025)
*USD 1,800,801 JPY 207,092,100 3/15/99 (94,659)
*USD 3,647,038 JPY 408,241,200 3/15/99 (283,715)
*JPY 923,000,000 USD 7,056,575 3/15/99 (547,623)
------------
(1,147,342)
------------
Net Unrealized Depreciation............ $(1,087,467)
============
</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.
GBP -- Pound Sterling
JPY -- Japanese Yen
USD -- United States Dollar
See Notes to Financial Statements
- ---------------------
88
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- ---------------------
SUNAMERICA SERIES TRUST
INTERNATIONAL DIVERSIFIED
EQUITIES PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
COMMON STOCK -- 89.5% SHARES VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRALIA -- 2.4%
Amcor Ltd. (Materials)...................................... 33,476 $ 145,980
AMP Ltd. (Finance)+......................................... 43,800 567,471
Australian Gas Light Co., Ltd. (Utilities).................. 17,198 127,958
Boral Ltd. (Industrial & Commercial)........................ 56,251 84,122
Brambles Industries Ltd. (Industrial & Commercial).......... 10,704 262,349
Broken Hill Proprietary Co., Ltd. (Energy).................. 102,400 813,939
Coca-Cola Amatil Ltd. (Consumer Staples).................... 38,452 129,215
Coles Myer Ltd. (Consumer Discretionary).................... 54,481 282,423
Crown Ltd. (Information & Entertainment).................... 73,822 19,946
CSR Ltd. (Industrial & Commercial).......................... 53,975 129,895
Email Ltd. (Multi-industry)................................. 17,464 26,336
F.H. Faulding & Co., Ltd. (Healthcare)+..................... 6,536 31,007
Fosters Brewing Group Ltd. (Consumer Staples)............... 86,773 227,364
General Property Trust (Real Estate)........................ 65,406 126,540
Gio Australia Holdings Ltd. (Finance)....................... 31,624 103,130
Goodman Fielder Wattie Ltd. (Consumer Staples).............. 63,811 68,564
Leighton Holdings Ltd. (Industrial & Commercial)............ 15,469 62,888
Lend Lease Corp., Ltd. (Finance)............................ 13,651 333,240
M.I.M. Holdings Ltd. (Materials)............................ 107,990 52,927
National Australia Bank Ltd. (Finance)...................... 68,951 1,032,010
News Corp., Ltd. (Information & Entertainment).............. 92,240 647,576
Normandy Mining Ltd. (Materials)............................ 118,381 110,089
North Ltd. (Materials)...................................... 51,012 95,519
Orica Ltd. (Materials)+..................................... 14,312 79,138
Pacific Dunlop Ltd. (Multi-industry)........................ 52,118 92,678
Pioneer International Ltd. (Industrial & Commercial)+....... 44,023 93,497
QBE Insurance Group Ltd. (Finance).......................... 20,113 86,697
Rio Tintro, Ltd. (Materials)................................ 13,371 172,234
Santos Ltd. (Energy)........................................ 29,740 86,241
Schroders Property Fund (Real Estate)....................... 27,586 45,761
Smith (Howard) Ltd. (Multi-industry)........................ 9,256 59,783
Southcorp Ltd. (Multi-industry)............................. 30,738 100,164
Stockland Trust Group (Real Estate)......................... 14,973 37,351
TABCORP Holdings Ltd. (Information & Entertainment)......... 16,774 112,619
Telstra Corp. (Information Technology)+..................... 252,247 1,122,176
Western Mining Corp. Holdings Ltd. (Materials)+............. 67,701 213,508
Westfield Trust (Real Estate)............................... 53,428 123,207
Westfield Trust new shares (Real Estate)+................... 1,061 2,400
Westpac Banking Corp., Ltd. (Finance)....................... 94,023 627,423
-------------
8,535,365
-------------
AUSTRIA -- 0.4%
Austria Mikro Systeme International AG (Information
Technology)............................................... 154 6,065
Austria Tabak AG (Consumer Staples)......................... 1,137 85,743
Austrian Airlines Osterreische Luftverkehrs AG (Information
& Entertainment)+......................................... 1,084 34,515
Bank Austria AG (Finance)................................... 5,431 280,777
Bank Austria AG (Finance)+.................................. 513 24,286
Bau Holdings AG (Consumer Discretionary).................... 243 10,995
</TABLE>
---------------------
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRIA (continued)
BBAG Oesterrichische Brau-Beteiligungs AG (Consumer
Staples).................................................. 474 $ 26,610
Boehler-Uddeholm AG (Materials)............................. 571 26,649
BWT AG (Industrial & Commercial)............................ 87 17,860
Flughafen Wien AG (Industrial & Commercial)................. 1,097 48,809
Generali AG Holding Vienna (Finance)........................ 366 80,042
Lenzing AG (Materials)+..................................... 191 11,459
Mayr-Melnhof Karton AG (Materials).......................... 619 28,371
Oesterreichische Elektrizitaetswirtschafts AG, Class A
(Utilities)............................................... 1,578 245,932
OMV AG (Energy)............................................. 1,381 130,179
Radex Heraklith Industriebeteiligungs AG (Materials)........ 724 19,170
VA Technologies AG (Industrial & Commercial)................ 775 64,938
Wienerberger Baustoffindustrie AG (Materials)............... 446 85,205
-------------
1,227,605
-------------
FRANCE -- 8.8%
Accor SA (Information & Entertainment)...................... 3,270 718,467
Alcatel Alsthom Compagnie General d'Electricite (Information
Technology)............................................... 7,133 942,842
AXA SA de CV (Finance)+..................................... 15,084 1,948,734
Banque Nationale de Paris (Finance)+........................ 9,925 758,872
Bouygues SA (Consumer Discretionary)........................ 1,282 238,860
Canal Plus (Information & Entertainment).................... 1,592 365,736
Cap Gemini SA (Industrial & Commercial)..................... 3,116 455,690
Carrefour SA (Consumer Discretionary)....................... 1,868 1,321,574
Compagnie de St. Gobain (Materials)......................... 4,088 603,586
Compagnie Financiere de Paribas SA (Finance)................ 7,683 684,680
Eridania Beghin-Say SA (Consumer Staples)................... 1,447 268,076
Essilor International SA (Healthcare)....................... 533 207,515
Etablissements Economiques du Casino Guichard-Perrachon SA
(Consumer Discretionary).................................. 4,225 401,023
France Telecom SA (Information Technology).................. 31,097 2,159,058
Groupe Danone (Consumer Staples)............................ 3,715 1,083,966
Imetal SA (Materials)....................................... 772 71,919
Klepierre (Real Estate)..................................... 6,110 625,047
L'Air Liquide SA (Materials)................................ 4,002 680,224
L'Air Liquide SA registered (Materials)..................... 7 1,190
L'Oreal (Consumer Staples).................................. 2,890 1,798,757
Lafarge SA (Materials)...................................... 5,003 471,351
Lagardere Group S.C.A. (Industrial & Commercial)............ 5,260 214,035
Legrand SA (Information Technology)......................... 1,478 400,597
Michelin SA, Class B (Consumer Discretionary)............... 5,857 252,741
Moet Henessy Louis Vuitton (Consumer Staples)............... 4,160 803,600
Pathe SA (Information & Entertainment)...................... 406 85,636
Pernod-Ricard (Consumer Staples)............................ 3,266 212,463
Peugeot SA (Consumer Discretionary)......................... 2,481 392,480
Pinault-Printemps-Redoute SA (Consumer Discretionary)....... 5,070 864,427
Promodes (Consumer Discretionary)........................... 903 590,286
Rhone-Poulenc Rorer SA, Class A (Materials)................. 15,756 785,141
Sagem SA (Industrial & Commercial).......................... 237 165,049
Sanofi SA (Healthcare)...................................... 5,157 920,051
Schneider SA (Industrial & Commercial)+..................... 6,311 387,699
Silic Societe Immobiliere de Location pour L'Industrie et le
Commerce (Real Estate).................................... 1,825 352,862
Simco SA registered (Real Estate)........................... 5,827 516,208
Societe BIC SA (Information Technology)..................... 2,508 156,497
Societe Eurafrance SA (Finance)............................. 191 120,861
Societe Generale d'Enterprises SA (Finance)+................ 4,520 711,861
Societe Nationale Elf Aquitaine SA (Energy)................. 11,936 1,487,489
Sodexho Alliance SA (Industrial & Commercial)............... 1,524 296,003
</TABLE>
- ---------------------
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C>
FRANCE (continued)
Sophia SA (Real Estate)..................................... 7,500 $ 313,621
Suez Lyonnaise des Eaux (Multi-industry).................... 5,892 1,163,031
Thomson CSF (Industrial & Commercial)....................... 5,801 218,205
Total SA, Class B (Energy).................................. 11,410 1,413,916
Unibail (Union du Credit -- Bail Immobilier) SA (Real
Estate)................................................... 4,295 599,422
USINOR SACILOR (Materials).................................. 12,014 135,150
Valeo SA (Consumer Discretionary)........................... 3,189 272,981
Vivendi (Multi-industry).................................... 7,285 1,646,718
-------------
31,286,197
-------------
GERMANY -- 7.4%
Adidas-Salomon AG (Consumer Discretionary).................. 1,788 194,984
Agiv AG (Multi-industry).................................... 1,811 40,886
Allianz Holding AG (Finance)................................ 9,023 3,247,099
AMB Aachener Und Muenchner Beteiligungs-AG (Finance)........ 775 121,975
Axa Colonia Konzern AG (Finance)............................ 911 106,864
BASF AG (Materials)......................................... 22,775 861,891
Bayer AG (Multi-industry)................................... 26,195 1,074,698
Beiersdorf AG, Series A (Healthcare)........................ 17 1,112
Bilfinger & Berger Bau AG (Consumer Discretionary).......... 2,396 52,964
Brau Und Brunnen AG (Consumer Staples)...................... 42 3,615
Continental AG (Consumer Discretionary)..................... 4,332 106,228
DaimlerChrysler AG (Consumer Discretionary)+................ 36,394 3,417,468
Degussa AG (Materials)...................................... 2,675 133,241
Deutsche Bank AG (Finance)+................................. 18,551 1,144,914
Deutsche Lufthansa AG (Information & Entertainment)......... 13,205 288,783
Deutsche Telekom AG (Information Technology)................ 78,744 2,209,446
Deutz AG (Industrial & Commercial)+......................... 2,563 24,324
Dresdner Bank AG (Finance).................................. 17,988 805,852
FAG Kugelfischer George Schaefer AG (Industrial &
Commercial)............................................... 5,541 48,994
Heidelberg Zement AG (Materials)............................ 736 54,231
Hochtief AG (Industrial & Commercial)....................... 3,892 150,844
HypoVereinsbank (Finance)................................... 14,818 1,282,212
Karstadt AG (Consumer Discretionary)........................ 443 207,601
Linde AG (Industrial & Commercial).......................... 292 165,583
MAN AG (Industrial & Commercial)............................ 476 134,962
Mannesmann AG (Industrial & Commercial)..................... 13,195 1,427,264
Merck KGAA (Healthcare)..................................... 7,945 323,148
Metro AG (Consumer Discretionary)........................... 8,685 541,389
Munchener Ruckversicherungs AG (Finance)+................... 2,974 1,367,397
Preussag AG (Multi-industry)................................ 627 229,519
RWE AG (Utilities).......................................... 15,665 828,751
SAP AG (Information Technology)............................. 2,230 1,009,543
Schering AG (Healthcare).................................... 2,832 350,567
Siemens AG (Industrial & Commercial)........................ 20,644 1,435,935
STRABAG AG (Industrial & Commercial)........................ 9 573
Thyssen AG (Industrial & Commercial)+....................... 1,478 266,597
VEBA AG (Utilities)......................................... 18,110 1,003,472
Viag AG (Multi-industry).................................... 1,073 660,960
Volkswagen AG (Consumer Discretionary)...................... 10,730 872,846
-------------
26,198,732
-------------
HONG KONG -- 1.9%
Bank of East Asia Ltd. (Finance)............................ 62,000 115,705
Cathay Pacific Airways Ltd. (Industrial & Commercial)....... 148,000 143,355
Cheung Kong Holdings Ltd. (Real Estate)..................... 95,000 684,005
CLP Holdings Ltd. (Utilities)............................... 103,000 541,405
Hang Lung Development Co., Ltd. (Real Estate)............... 48,000 55,482
Hang Seng Bank Ltd. (Finance)............................... 84,200 742,174
</TABLE>
---------------------
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C>
HONG KONG (continued)
Hong Kong & China Gas Co., Ltd. (Utilities)+................ 191,000 $ 254,075
Hong Kong Telecommunications Ltd. (Information
Technology)............................................... 520,000 993,930
Hong Kong & Shanghai Hotels Ltd. (Information &
Entertainment)............................................ 37,000 30,583
Hopewell Holdings Ltd. (Real Estate)........................ 263,000 33,287
Hutchison Whampoa Ltd. (Multi-industry)+.................... 169,000 1,205,896
Hysan Development Co., Ltd. (Real Estate)................... 48,000 70,050
Johnson Electric Holdings Ltd. (Information Technology)..... 23,200 51,835
New World Development Co., Ltd. (Real Estate)............... 99,000 240,372
Shangri-La Asia Ltd. (Information & Entertainment).......... 34,000 30,298
Sino Land Co., Ltd. (Real Estate)........................... 227,000 116,534
South China Morning Post (Holdings) Ltd.
(Information & Entertainment)............................. 48,000 26,656
Sun Hung Kai Properties Ltd. (Real Estate)+................. 109,000 781,286
Swire Pacific Ltd., Class A (Multi-industry)................ 69,000 312,786
Television Broadcasting Ltd. (Information &
Entertainment)............................................ 18,000 46,494
Varitronix International Ltd. (Industrial & Commercial)..... 6,000 11,468
Wharf Holdings Ltd. (Multi-industry)........................ 120,000 189,849
-------------
6,677,525
-------------
ITALY -- 6.7%
Alitalia SpA (Information & Entertainment).................. 92,254 340,512
Assicurazione Generali SpA (Finance)........................ 66,730 2,490,830
Banca Commerciale Italiana SpA (Finance)+................... 120,200 822,205
Banca Intesa SpA (Finance).................................. 128,900 719,415
Banca Popolare di Milano (Finance).......................... 16,000 146,212
Benetton Group SpA (Consumer Discretionary)................. 114,280 209,545
Burgo (Cartiere) SpA (Materials)............................ 6,700 41,881
Ciga SpA (Information & Entertainment)+..................... 342,330 299,380
Edison SpA (Utilities)...................................... 46,000 462,807
ENI SpA (Energy)............................................ 536,000 3,323,376
Falck Acciaierie & Ferriere Lombarde (Materials)............ 2,000 15,562
Fiat SpA (Consumer Discretionary)........................... 277,720 851,471
Fiat SpA nonconvertible (Consumer Discretionary)............ 66,870 120,026
Immobilare Metanopoli SpA (Real Estate)..................... 54,200 66,792
Impreglio SpA (Industrial & Commercial)..................... 30,000 25,450
Istituto Mobilare Italiano SpA (Finance).................... 93,222 1,528,957
Istituto Nazionale Delle Assicurazioni SpA (Finance)........ 266,010 701,547
Italcementi Fabbriche Riunicemento SpA (Materials).......... 10,050 101,173
Italcementi Fabbriche Riunicemento SpA nonconvertible
(Materials)............................................... 15,150 72,199
Italgas-Societa Italiana Per il Gas SpA (Utilities)+........ 30,900 152,684
La Rinascente (Consumer Discretionary)...................... 15,000 146,852
Magneti Marelli SpA (Industrial & Commercial)............... 22,500 39,180
Mediaset SpA (Information & Entertainment).................. 73,500 518,515
Mediobanca SpA (Finance).................................... 43,440 524,978
Montedison SpA (Multi-industry)............................. 264,650 315,894
Montedison SpA nonconvertible (Multi-industry).............. 87,100 76,742
Olivetti SpA (Information Technology)+...................... 190,720 499,579
Parmalat Finanziaria SpA (Consumer Staples)+................ 117,920 221,835
Pirelli SpA (Consumer Discretionary)........................ 149,000 463,033
Reno De Medici SpA (Materials).............................. 1,300 4,334
Riunione Adriatica de Sicur Ras SpA (Finance)............... 32,500 436,300
Riunione Adriatica de Sicur Ras SpA nonconvertible
(Finance)................................................. 165 1,557
S.A.I Societa Assicuratrice Industriale SpA (Finance)....... 8,950 100,436
Sirti SpA (Consumer Discretionary).......................... 12,600 72,461
SNIA BPD SpA (Multi-industry)............................... 63,000 90,013
Telecom Italia Mobile SpA RNC (Information Technology)...... 105,000 441,941
Telecom Italia Mobile SpA (Information Technology).......... 430,400 2,818,514
Telecom Italia SpA (Information Technology)................. 243,055 1,968,604
Telecom Italia SpA nonconvertible (Information
Technology)+.............................................. 64,709 404,106
</TABLE>
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ITALY (continued)
UniCredito Italiano SpA (Finance)........................... 288,283 $ 1,638,137
Unione Immobiliare SpA (Real Estate)+....................... 815,471 407,796
-------------
23,682,831
-------------
JAPAN -- 16.4%
77 Bank, Ltd. (Finance)..................................... 14,000 130,341
Acom Co., Ltd. (Finance).................................... 5,300 320,495
Ajinomoto Co., Inc. (Consumer Staples)...................... 54,000 490,032
AOKI Corp. (Industrial & Commercial)........................ 56,400 33,877
Asahi Bank Ltd. (Finance)................................... 77,000 293,750
Asahi Breweries Ltd. (Consumer Staples)..................... 34,400 497,013
Asahi Chemical Industry Co., Inc. (Materials)............... 100,000 415,584
Asahi Glass Co., Ltd. (Materials)........................... 94,200 547,461
Bank of Tokyo-Mitsubishi Ltd. (Finance)..................... 212,400 2,310,195
Bank of Yokohama Ltd. (Finance)............................. 28,000 59,091
Bridgestone Corp. (Consumer Discretionary).................. 37,400 874,286
Canon, Inc. (Information Technology)........................ 41,200 909,610
Casio Computer Co., Ltd. (Information Technology)........... 20,600 159,182
Chiba Bank Ltd. (Finance)................................... 27,000 101,688
Chugai Pharmaceutical Co., Ltd. (Healthcare)................ 34,400 293,461
Credit Saison Co., Ltd. (Finance)........................... 6,000 136,851
Dai Nippon Printing Co. Ltd. (Industrial & Commercial)...... 38,400 556,364
Daiei, Inc. (Consumer Discretionary)........................ 35,200 94,000
Daikin Industries Ltd. (Industrial & Commercial)............ 34,400 301,558
Daiwa House Industry Co., Ltd. (Consumer Discretionary)..... 34,400 364,383
Daiwa Securities Co., Ltd. (Finance)........................ 128,000 456,104
Denso Corp. (Consumer Discretionary)........................ 12,859 248,413
East Japan Railway Co. (Industrial & Commercial)............ 199 1,154,911
Ebara Corp. (Industrial & Commercial)....................... 22,600 189,312
Fanuc Ltd. (Information Technology)......................... 14,200 449,513
Fuji Bank Ltd. (Finance).................................... 203,000 802,443
Fuji Photo Film Co., Ltd. (Information & Entertainment)..... 20,600 769,156
Fujitsu Ltd. (Information Technology)....................... 82,400 951,078
Furukawa Electric Co., Ltd. (Industrial & Commercial)....... 24,600 82,865
Gunma Bank Ltd. (Finance)................................... 14,000 104,659
Hankyu Corp. (Industrial & Commercial)...................... 43,000 174,513
Hazama Corp. (Industrial & Commercial)...................... 32,300 22,809
Hitachi Ltd. (Information Technology)+...................... 166,800 1,003,237
Honda Motor Co., Ltd. (Consumer Discretionary).............. 40,000 1,435,065
Industrial Bank of Japan Ltd. (Finance)..................... 93,000 501,989
Ito-Yokado Co. Ltd. (Consumer Discretionary)................ 16,600 1,013,247
Japan Airlines Co., Ltd. (Information & Entertainment)...... 105,100 266,162
Japan Energy Corp. (Energy)................................. 79,400 79,916
Joyo Bank Ltd. (Finance).................................... 14,000 51,136
Jusco Co., Ltd. (Consumer Discretionary).................... 17,800 338,807
Kajima Corp. (Industrial & Commercial)...................... 65,800 175,182
Kansai Electric Power Co., Inc. (Utilities)................. 42,800 858,084
KAO Corp. (Consumer Staples)................................ 43,800 828,360
Kawasaki Steel Corp. (Materials)............................ 53,000 79,586
Kinki Nippon Railway Co., Ltd. (Industrial & Commercial).... 76,500 379,395
Kirin Brewery Co., Ltd. (Consumer Staples).................. 67,800 703,315
Komatsu Ltd. (Industrial & Commercial)...................... 60,800 311,403
Kubota Ltd. (Industrial & Commercial)....................... 95,000 218,994
Kumagai Gumi Co., Ltd. (Industrial & Commercial)............ 103,800 85,938
Kyocera Corp. (Information Technology)...................... 9,900 466,875
Kyowa Hakko Kogyo Co., Ltd. (Healthcare).................... 31,400 153,687
Marubeni Corp. (Consumer Discretionary)..................... 90,200 164,000
Marui Co., Ltd. (Consumer Discretionary).................... 7,800 138,969
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JAPAN (continued)
Matsushita Electric Industrial Co., Ltd. (Industrial &
Commercial)+.............................................. 85,000 $ 1,366,071
Mitsubishi Chemical Corp. (Materials)....................... 101,000 188,555
Mitsubishi Corp. (Consumer Discretionary)................... 89,000 570,698
Mitsubishi Electric Corp. (Information Technology).......... 118,800 300,857
Mitsubishi Estate Co., Ltd. (Real Estate)................... 28,000 267,273
Mitsubishi Heavy Industries Ltd. (Industrial &
Commercial)............................................... 181,400 678,778
Mitsubishi Materials Corp. (Materials)...................... 63,600 113,571
Mitsubishi Trust & Banking Corp. (Finance).................. 44,800 323,636
Mitsui & Co. (Consumer Discretionary)....................... 91,600 522,685
Mitsui Engineering & Shipbuilding Co., Ltd. (Industrial &
Commercial)............................................... 65,800 66,227
Mitsui Fudosan Co., Ltd. (Real Estate)...................... 22,000 168,571
Mitsui Trust & Banking Co., Ltd. (Finance).................. 2,000 2,679
Mitsukoshi Ltd. (Consumer Discretionary).................... 35,200 98,000
Murata Manufacturing Co., Ltd. (Information Technology)..... 14,800 579,026
Mycal Corp. (Consumer Discretionary)........................ 21,600 135,000
NEC Corp. (Information Technology).......................... 58,800 500,182
NGK Insulators Ltd. (Industrial & Commercial)............... 34,400 376,390
Nippon Express Co., Ltd. (Industrial & Commercial).......... 25,400 131,948
Nippon Fire & Marine Insurance Co., Ltd. (Finance).......... 31,400 107,555
Nippon Light Metal Co., Ltd. (Materials).................... 31,400 34,153
Nippon Meat Packers, Inc. (Consumer Staples)................ 32,400 450,234
Nippon Oil Co., Ltd. (Energy)............................... 96,200 316,242
Nippon Steel Corp. (Materials).............................. 374,000 680,000
Nippon Telegraph & Telephone Corp. (Utilities).............. 507 3,786,039
Nippon Yusen Kabushiki Kaish (Industrial & Commercial)...... 95,000 289,164
Nissan Motor Co. Ltd. (Consumer Discretionary).............. 120,600 371,981
NKK Corp. (Materials)....................................... 197,200 140,857
Nomura Securities Co., Ltd. (Finance)....................... 66,000 641,250
Odakyu Electric Railway Co., Ltd. (Industrial &
Commercial)............................................... 37,000 120,130
Oji Paper Co., Ltd. (Materials)+............................ 67,800 304,330
Orix Corp. (Finance)........................................ 1,500 107,021
Osaka Gas Co., Ltd. (Utilities)............................. 134,200 392,143
Penta Ocean Construction Co., Ltd. (Consumer
Discretionary)............................................ 31,400 68,050
Pioneer Electronic Corp. (Industrial & Commercial).......... 9,600 157,792
Rohm Co., Ltd. (Information Technology)..................... 4,800 405,195
Sakura Bank Ltd. (Finance).................................. 127,400 324,705
Sankyo Co., Ltd. (Healthcare)............................... 24,600 559,091
Sanwa Bank Ltd. (Finance)................................... 65,000 588,271
Sanyo Electric Co., Ltd. (Information Technology)........... 86,000 242,922
Secom Co., Ltd. (Industrial & Commercial)................... 8,000 591,558
Sega Enterprises Ltd. (Information & Entertainment)......... 6,800 164,481
Sekisui House Ltd. (Consumer Discretionary)................. 33,400 324,782
Sharp Corp. (Information Technology)........................ 56,800 500,688
Shimano, Inc. (Information & Entertainment)................. 8,800 230,000
Shimizu Corp. (Consumer Discretionary)...................... 48,000 157,792
Shin-Etsu Chemical Co., Ltd. (Materials).................... 14,000 312,500
Shiseido Co., Ltd. (Healthcare)............................. 14,600 166,028
Shizuoka Bank Ltd. (Finance)................................ 19,000 205,885
Showa Denko KK (Materials).................................. 63,800 56,964
SMC Corp (Industrial & Commercial).......................... 2,400 179,026
Sony Corp. (Information Technology)......................... 14,100 1,031,177
Sumitomo Bank, Ltd. (Finance)............................... 81,000 900,073
Sumitomo Chemical Co., Ltd. (Materials)..................... 126,400 438,091
Sumitomo Corp. (Consumer Discretionary)..................... 64,400 351,795
Sumitomo Electric Industries Ltd. (Industrial &
Commercial)............................................... 45,200 491,623
Sumitomo Forestry Co., Ltd. (Materials)..................... 19,800 136,607
Sumitomo Metal Industries Ltd. (Materials).................. 120,800 144,136
Sumitomo Metal Mining Co., Ltd. (Materials)................. 32,400 116,766
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JAPAN (continued)
Sumitomo Osaka Cement Co., Ltd. (Materials)................. 32,200 $ 61,420
Taisei Corp. (Consumer Discretionary)....................... 67,800 129,326
Taisho Pharmaceutical Co., Ltd. (Healthcare)................ 20,600 509,984
Taiyo Yuden Co., Ltd. (Information Technology).............. 39,000 435,268
Takeda Chemical Industries Ltd. (Healthcare)................ 39,200 1,320,455
Teijin Ltd. (Materials)..................................... 67,800 242,693
Tobu Railway Co., Ltd. (Industrial & Commercial)............ 43,200 124,481
Tohoku Electric Power Co., Inc. (Utilities)................. 22,900 371,753
Tokai Bank Ltd. (Finance)................................... 64,000 323,636
Tokio Marine & Fire Insurance Co., Ltd. (Finance)........... 93,000 1,049,270
Tokyo Electric Power Co., Inc. (Utilities).................. 55,500 1,265,869
Tokyo Electron Ltd. (Information Technology)................ 4,100 153,084
Tokyo Gas Co. Ltd. (Utilities).............................. 126,400 296,507
Tokyu Corp. (Industrial & Commercial)....................... 53,000 138,953
Toppan Printing Co., Ltd. (Industrial & Commercial)......... 44,200 523,799
Toray Industries, Inc. (Materials).......................... 99,100 470,564
Toto Ltd. (Materials)....................................... 34,200 255,390
Toyobo Co., Ltd. (Consumer Discretionary)................... 67,800 83,099
Toyota Motor Corp. (Consumer Discretionary)................. 138,200 3,499,870
Ube Industries Ltd. (Materials)............................. 63,800 90,107
Yokogawa Electric Corp. (Information Technology)............ 35,000 173,864
-------------
58,044,981
-------------
NETHERLANDS -- 3.9%
ABN Amro Holdings NV (Finance).............................. 43,999 906,413
AEGON NV (Finance).......................................... 17,000 1,818,619
Akzo Nobel NV (Materials)................................... 10,200 418,122
Buhrmann NV (Materials)..................................... 2,720 44,230
Elsevier NV (Information & Entertainment)................... 18,500 242,791
Getronics NV (Information Technology)+...................... 2,623 114,655
Hagemeyer NV (Consumer Discretionary)....................... 2,500 87,710
Heineken NV (Consumer Staples).............................. 9,475 481,045
ING Groep NV (Finance)...................................... 28,342 1,622,676
KLM Royal Dutch Air Lines NV (Information &
Entertainment)............................................ 2,521 68,939
Koninklijke Ahold NV (Consumer Discretionary)............... 16,253 563,423
Koninklijke KPN BT NV (Information Technology).............. 13,791 594,890
Koninklijke Nedlloyd NV (Industrial & Commercial)........... 750 10,235
Oce-Van Der Grinten NV (Information Technology)+............ 2,859 100,455
Philips Electronics NV (Information Technology)............. 10,950 692,766
Rodamco NV (Real Estate).................................... 12,817 307,600
Royal Dutch Petroleum Co. (Energy).......................... 66,000 3,161,015
Stork NV (Industrial & Commercial).......................... 1,488 37,890
TNT Post Group NV (Industrial & Commercial)+................ 14,889 374,453
UNI-INVEST NV (Finance)..................................... 17,930 265,310
Unilever NV (Consumer Staples).............................. 20,000 1,563,358
Vedior NV (Industrial & Commercial)+........................ 2,300 46,901
Wolters Kluwer NV (Information & Entertainment)+............ 2,193 417,949
-------------
13,941,445
-------------
NORWAY -- 0.1%
Choice Hotels Scandinavia ASA (Information &
Entertainment)+........................................... 90,200 108,421
Linstow ASA (Real Estate)................................... 42,670 222,254
-------------
330,675
-------------
PORTUGAL -- 1.2%
Banco Commercial Portugues SA (Finance)+.................... 17,023 518,523
Banco Espirito Santo e Comercial de Lisboa (Finance)........ 10,400 322,345
Banco Pinto & Sotto Mayor (Finance)......................... 20 365
BPI-SGPS SA (Finance)+...................................... 6,900 223,899
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PORTUGAL (continued)
Brisa-Auto Estradas de Portugal SA (Industrial &
Commercial)............................................... 5,200 $ 280,976
Cimpor-Cimentos de Portugal SGPS SA (Industrial &
Commercial)+.............................................. 7,800 246,646
CIN-Corparacao Industrial de Norte SA (Materials)........... 300 12,235
Companhia de Seguros Tranquilidade (Finance)................ 1,500 48,932
Electricidad de Portugal SA (Utilities)..................... 52,300 1,158,347
INAPA-Investimentos Participacoes e Gestao SA (Materials)... 800 7,882
Jeronimo Martins SGPS SA (Consumer Staples)................. 5,900 289,294
Portucel Industrial-Empresa Produtora de Celulose SA
(Materials)............................................... 9,300 59,660
Portugal Telecom SA (Information Technology)................ 17,300 751,210
Sociedade de Construcoes Soares da Costa SA (Industrial &
Commercial)+.............................................. 300 1,328
Somague-Sociedade Gestora de Participacoes SA (Industrial &
Commercial)............................................... 1,800 10,761
Sonae Investimentos-Sociedade Gestora de Participacoes
Sociais SA (Industrial & Commercial)...................... 3,900 183,875
Unicer-Uniao Cervejjeira SA (Consumer Staples).............. 1,500 34,102
-------------
4,150,380
-------------
SINGAPORE -- 2.1%
Asia Foods & Properties Ltd. (Consumer Staples)............. 22,666 4,647
City Developments Ltd. (Real Estate)........................ 100,000 475,902
Creative Technology Ltd. (Information Technology)+.......... 11,300 207,572
Cycle & Carriage Ltd. (Consumer Discretionary).............. 47,000 162,413
DBS Land Ltd. (Real Estate)................................. 149,000 212,276
Development Bank of Singapore Ltd. (Finance)................ 81,000 613,822
Fraser & Neave Ltd. (Consumer Staples)...................... 37,800 130,621
Hotel Properties Ltd. (Real Estate)......................... 60,000 31,464
Inchcape Marketing Services Ltd. (Multi-industry)+.......... 8,000 3,613
Inchcape Motors Ltd. (Multi-industry)....................... 3,000 4,165
Keppel Corp., Ltd. (Multi-industry)......................... 138,000 363,092
NatSteel Ltd. (Materials)................................... 49,000 64,759
Neptune Orient Lines Ltd. (Industrial & Commercial)......... 144,000 56,308
Overseas Chinese Banking Corp. Ltd. (Finance)............... 128,534 787,022
Overseas Union Enterprise Ltd. (Information &
Entertainment)............................................ 24,000 41,467
Parkway Holdings Ltd. (Healthcare).......................... 42,000 77,915
Robinson & Co., Ltd. (Consumer Discretionary)............... 5,400 16,369
Sembcorp Industries Ltd. (Industrial & Commercial)+......... 201,331 239,229
Shangri-La Hotel Ltd. (Information & Entertainment)......... 11,400 16,587
Singapore Airlines Ltd. (Information & Entertainment)....... 137,000 955,138
Singapore Press Holdings Ltd. (Information &
Entertainment)............................................ 45,918 492,724
Singapore Technologies Engineering Ltd. (Industrial &
Commercial)............................................... 357,000 389,573
Singapore Telecommunications Ltd. (Information
Technology)............................................... 763,000 1,272,052
Straits Trading Co., Ltd. (Real Estate)..................... 6,000 4,620
United Industrial Corp., Ltd. (Multi-industry).............. 176,000 76,823
United Overseas Bank Ltd. (Finance)......................... 106,000 613,701
United Overseas Land Ltd. (Real Estate)..................... 84,000 58,563
Venture Manufacturing Ltd. (Information Technology)......... 25,000 95,484
-------------
7,467,921
-------------
SPAIN -- 5.8%
Acerinox SA (Materials)..................................... 6,935 164,787
Autopistas Concesionaria Espana SA (Industrial &
Commercial)............................................... 21,486 327,462
Azucarera Ebro Agricolas SA (Consumer Staples)+............. 4,050 95,674
Banco Bilbao Vizcaya SA (Finance)........................... 177,150 2,798,074
Banco Central Hispanoamericano SA (Finance)................. 113,100 1,300,630
Banco de Santander SA (Finance)............................. 83,100 1,698,268
Corporacion Bancaria de Espana SA (Finance)................. 43,000 1,000,901
Corporacion Financiera Alba SA (Multi-industry)............. 1,325 174,219
Corporacion Mapfre SA (Finance)............................. 5,336 147,863
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SPAIN (continued)
Dragados & Construcciones SA (Industrial & Commercial)...... 5,350 $ 172,897
Empresa Nacional Celulos SA (Materials)..................... 1,375 22,099
Endesa SA (Utilities)....................................... 81,250 2,119,198
Ercros SA (Materials)....................................... 14,800 21,941
Fomento de Construcciones y Contratas SA (Consumer
Discretionary)............................................ 5,400 322,092
Gas Natural SDG, SA (Utilities)............................. 13,400 1,128,812
Iberdrola SA (Utilities).................................... 77,800 1,288,133
Mapfre Vida Seguros (Finance)............................... 26 998
Metrovacesa SA (Real Estate)................................ 5,424 149,174
Portland Valderrivas SA (Materials)......................... 225 9,103
Repsol SA (Energy).......................................... 25,500 1,445,029
Sociedad General de Aguas de Barcelona SA (Utilities)....... 4,082 233,015
Tabacalera SA, Series A (Consumer Staples).................. 13,500 333,876
Telefonica de Espana SA (Utilities)......................... 89,345 4,196,461
Union Electrica Fenosa SA (Utilities)....................... 26,800 396,384
Uralita SA (Materials)...................................... 5,400 59,668
Vallehermoso SA (Real Estate)............................... 54,399 640,653
Viscofan Industria Navarra De Envolturas Celulsicas SA
(Consumer Staples)........................................ 1,400 42,674
Zardoya Otis SA (Industrial & Commercial)................... 6,625 202,169
-------------
20,492,254
-------------
SWEDEN -- 2.3%
ABB AB, Class A (Industrial & Commercial)+.................. 23,000 248,710
ABB AB, Class B (Industrial & Commercial)+.................. 9,600 102,630
AGA AB, Series B (Materials)................................ 5,650 66,650
Asticus AB (Real Estate)+................................... 36,480 309,304
Astra AB, Class A (Healthcare).............................. 45,566 834,275
Astra AB, Class B (Healthcare).............................. 11,000 196,670
Atlas Copco AB, Class A (Industrial & Commercial)........... 4,450 101,435
Atlas Copco AB, Class B (Industrial & Commercial)........... 2,400 52,642
Castellum AB (Real Estate).................................. 59,370 554,451
Diligentia AB (Real Estate)................................. 43,610 292,055
Electrolux AB (Consumer Discretionary)...................... 10,600 161,514
Ericsson L.M. Telecommunications Co., Class B (Information
Technology)............................................... 65,800 1,827,329
Fastighets AB Tornet (Real Estate).......................... 19,620 255,557
ForeningsSparbanken AB, Class A (Finance)................... 12,000 336,200
Hennes & Mauritz AB, Class B (Consumer Discretionary)....... 7,100 524,343
NetCom Systems AB, Class B (Information Technology)+........ 3,700 142,762
OM Gruppen AB (Finance)..................................... 2,500 35,942
Piren AB, Series B (Real Estate)............................ 13,420 98,943
Sandvik AB, Class A (Materials)............................. 6,800 124,502
Sandvik AB, Class B (Materials)............................. 2,800 51,610
Securitas AB, Series B (Industrial & Commercial)............ 9,244 137,445
Skandia Forsakrings AB (Finance)............................ 17,800 252,630
Skandinaviska Enskilda Bank, Series A (Finance)............. 20,700 235,285
Skanska AB, Series B (Industrial & Commercial).............. 4,300 119,415
SKF AB, Series B (Materials)+............................... 3,000 38,707
SSAB Svenskt Stal AB, Series A (Materials).................. 4,200 37,675
Stora Kopparbergs Bergslags Aktiebolag, Class A
(Materials)............................................... 10,650 130,868
Svenska Cellulosa AB, Class B (Materials)................... 7,700 168,893
Svenska Handelsbank, Series A (Finance)+.................... 7,400 298,255
Trelleborg AB, Class B (Multi-industry)..................... 5,100 42,928
Volvo AB, Class A (Consumer Discretionary).................. 5,100 114,998
Volvo AB, Class B (Consumer Discretionary).................. 10,600 246,178
WM-Data AB, Class B (Information Technology)................ 2,500 105,984
-------------
8,246,785
-------------
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SWITZERLAND -- 6.5%
ABB AG (Information Technology)+............................ 390 $ 485,161
Adecco SA (Industrial & Commercial)......................... 755 327,673
Alusuisse-Lonza Group Ltd. (Multi-industry)................. 250 315,119
Credit Suisse Group (Finance)............................... 10,950 1,882,117
Georg Fischer AG, Series B (Industrial & Commercial)........ 135 46,022
Holderbank Financiere Glarus AG (Materials)................. 285 329,843
Nestle SA (Consumer Staples)+............................... 1,615 3,354,222
Novartis AG (Healthcare).................................... 2,625 4,925,517
Roche Holdings AG Gerusscheine NPV (Healthcare)............. 284 3,335,673
Roche Holdings AG (Healthcare).............................. 68 1,218,721
SAirGroup (Information & Entertainment)..................... 650 143,612
Schweizerische Rueckversicherungs-Gesellschaft (Consumer
Discretionary)+........................................... 600 1,516,007
SGS Societe Generale de Surveillance Holding SA, Series B
(Industrial & Commercial)................................. 70 55,146
Sulzer AG (Multi-industry).................................. 170 96,061
Swatch Group AG (Consumer Discretionary).................... 205 115,691
Swisscom AG (Utilities)+.................................... 2,750 925,661
UBS AG (Finance)+........................................... 8,323 2,503,516
Valora Holdings AG (Industrial & Commercial)................ 265 69,272
Zurich Allied AG (Finance)+................................. 1,945 1,388,788
-------------
23,033,822
-------------
THAILAND -- 0.0%
Advance Agro PCL (Materials)................................ 660 521
CMIC Finance & Security PCL (Finance)(1).................... 6,700 0
Finance One PCL (Finance)(1)................................ 37,700 0
General Finance & Securities PCL (Finance)(1)............... 7,650 0
Univest Land PCL (Real Estate)(1)........................... 22,500 0
-------------
521
-------------
UNITED KINGDOM -- 23.6%
Abbey National PLC (Finance)................................ 77,650 1,575,381
Albert Fisher Group PLC (Consumer Staples).................. 55,153 5,686
Alldays PLC (Consumer Discretionary)........................ 2,933 8,466
Allders PLC (Consumer Discretionary)........................ 3,826 5,869
Allied Zurich PLC (Finance)+................................ 86,030 1,227,453
AMEC PLC (Industrial & Commercial).......................... 11,188 33,033
Anglian Water PLC (Utilities)............................... 34,916 497,020
Arjo Wiggins Appleton PLC (Materials)....................... 38,825 74,286
Associated British Foods PLC (Consumer Staples)............. 27,750 280,584
Associated British Ports Holdings PLC (Industrial &
Commercial)............................................... 27,950 144,991
Astec (BSR) PLC (Utilities)................................. 17,054 23,910
Barclays PLC (Finance)...................................... 94,245 2,137,470
Barratt Developments PLC (Industrial & Commercial).......... 15,998 60,164
Bass PLC (Consumer Staples)+................................ 54,463 751,012
BBA Group PLC (Multi-industry).............................. 1,916 10,492
Beazer Group PLC (Industrial & Commercial).................. 22,119 62,935
Berisford PLC (Multi-industry).............................. 29,455 92,311
Berkeley Group PLC (Industrial & Commercial)................ 11,553 92,422
BG PLC (Utilities).......................................... 215,535 1,477,161
BICC Group PLC (Industrial & Commercial).................... 50,202 51,340
Blue Circle Industries PLC (Materials)...................... 74,077 373,890
BOC Group PLC (Materials)................................... 38,795 563,435
Boots Co. PLC (Consumer Discretionary)...................... 61,000 984,028
BPB Industries PLC (Materials).............................. 97,923 335,960
British Aerospace PLC (Industrial & Commercial)............. 110,952 953,480
British Airways PLC (Information & Entertainment)........... 66,604 450,426
British America Tobacco PLC (Consumer Staples)+............. 86,030 788,621
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UNITED KINGDOM (continued)
British Land Co. PLC (Real Estate).......................... 57,710 $ 496,890
British Petroleum Co. PLC (Energy).......................... 326,705 5,100,530
British Sky Broadcasting Group PLC (Information &
Entertainment)............................................ 88,725 733,200
British Steel PLC (Materials)............................... 110,975 179,387
British Telecommunications PLC (Information Technology)..... 321,750 4,407,549
BTR Ltd. PLC (Multi-industry)............................... 347,322 710,384
Burford Holdings PLC (Real Estate).......................... 149,700 212,353
Burmah Castrol PLC (Energy)................................. 53,329 775,838
Cable & Wireless PLC (Information Technology)............... 138,715 1,761,786
Cadbury Schweppes PLC (Consumer Staples).................... 60,996 915,549
Capital Corp. PLC (Information & Entertainment)............. 7,320 6,882
Capital Shopping Centers PLC (Consumer Discretionary)....... 100,160 580,709
Caradon PLC (Materials)..................................... 106,713 179,538
Carpetright PLC (Consumer Discretionary).................... 19,240 63,153
Centrica PLC (Utilities)+................................... 244,100 509,328
CGU PLC (Finance)........................................... 38,848 615,788
Coats Viyella PLC (Consumer Discretionary).................. 49,895 20,163
Cobham PLC (Industrial & Commercial)........................ 5,557 78,828
De La Rue PLC (Information & Entertainment)................. 5,569 16,259
Delta PLC (Multi-industry).................................. 3,744 7,596
Diageo PLC (Consumer Staples)............................... 175,209 1,962,299
Dialog Corp. PLC (Information Technology)+.................. 6,944 8,018
Elementis PLC (Multi-industry).............................. 43,290 52,125
EMAP PLC (Information & Entertainment)...................... 9,254 176,757
Emi Group PLC (Information & Entertainment)................. 93,513 556,824
Enterprise Oil PLC (Energy)................................. 44,511 244,484
FirstGroup PLC (Industrial & Commercial).................... 43,110 278,031
FKI PLC (Multi-industry).................................... 35,500 86,076
General Electric Co. PLC (Information Technology)........... 160,975 1,315,652
GKN PLC (Consumer Discretionary)............................ 66,550 734,367
Glaxo Wellcome PLC (Healthcare)............................. 170,650 5,395,943
Granada Group PLC (Information & Entertainment)............. 38,831 605,911
Grantchester Holdings PLC (Real Estate)..................... 215,190 504,022
Great Universal Stores PLC (Consumer Discretionary)......... 66,575 692,365
Greycoat PLC (Real Estate).................................. 8,495 20,318
Guardian Royal Exchange PLC (Finance)....................... 42,296 230,225
Hammerson PLC (Real Estate)................................. 41,860 266,517
Hanson PLC (Multi-industry)................................. 76,121 565,010
House of Fraser PLC (Consumer Discretionary)................ 21,504 24,829
HSBC Holdings PLC (Finance)................................. 122,018 3,091,392
Hyder PLC (Utilities)....................................... 13,296 178,738
IMI PLC (Multi-industry).................................... 41,564 181,678
Imperial Chemical Industries PLC (Materials)................ 49,900 464,214
Jarvis PLC (Industrial & Commercial)........................ 12,566 136,176
JBA Holdings PLC (Information Technology)................... 2,260 7,418
Johnson Matthey PLC (Multi-industry)........................ 49,203 334,573
Kwik-Fit Holdings PLC (Consumer Discretionary).............. 3,911 35,093
Ladbroke Group PLC (Information & Entertainment)............ 67,414 260,755
Laird Group PLC (Multi-industry)............................ 9,983 22,383
Land Securities PLC (Real Estate)........................... 44,400 589,546
LASMO PLC (Energy).......................................... 161,908 373,215
Legal & General Group Ltd. PLC (Finance).................... 66,575 815,355
Lex Service PLC (Consumer Discretionary).................... 16,132 107,234
LIMIT PLC (Finance)......................................... 15,306 42,667
Lloyds TSB Group PLC (Finance).............................. 305,124 4,240,189
London Clubs International PLC (Information &
Entertainment)............................................ 35,948 83,605
London Forfaiting Co. PLC (Finance)......................... 11,118 28,058
Lonrho Arfica PLC (Multi-industry)+......................... 11,101 12,268
</TABLE>
---------------------
99
<PAGE> 101
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (continued)
Lonrho PLC (Multi-industry)................................. 42,135 $ 210,410
Low & Bonar PLC (Materials)................................. 2,967 6,509
LucasVarity PLC (Consumer Discretionary).................... 128,182 439,774
Manchester United PLC (Information & Entertainment)......... 2,867 10,404
Marks & Spencer PLC (Consumer Discretionary)................ 194,200 1,319,731
Marley PLC (Materials)...................................... 67,334 117,728
Matthew Clark PLC (Consumer Staples)........................ 35,652 140,547
Mayflower Corp. PLC (Consumer Discretionary)................ 375 829
McKechnie PLC (Multi-industry).............................. 3,439 18,960
Meggitt PLC (Multi-industry)................................ 8,797 18,718
MEPC PLC (Real Estate)...................................... 27,529 186,172
Mirror Group PLC (Information & Entertainment).............. 36,930 88,862
Misys PLC (Information Technology).......................... 62,134 437,619
National Power PLC (Utilities).............................. 80,582 685,846
Next PLC (Multi-industry)................................... 26,981 218,069
NFC PLC (Industrial & Commercial)........................... 70,218 136,090
Ocean Group PLC (Industrial & Commercial)................... 1,568 19,398
Parity PLC (Information Technology)......................... 15,885 128,125
Peninsular & Oriental Steam PLC (Industrial & Commercial)... 47,262 572,979
Pennon Group PLC (Industrial & Commercial).................. 18,684 344,549
Pilkington PLC (Materials).................................. 267,880 287,205
Powerscreen International PLC (Industrial & Commercial)..... 3,129 6,400
Prudential Corp. PLC (Finance).............................. 110,910 1,617,193
Racal Electronic PLC (Information Technology)............... 17,560 91,527
Rank Group PLC (Information & Entertainment)................ 98,886 370,254
Reed International PLC (Information & Entertainment)........ 77,650 610,940
Reuters Group PLC (Information & Entertainment)............. 81,726 789,271
Rexam PLC (Materials)....................................... 29,449 96,178
Rio Tinto PLC (Materials)................................... 66,598 779,935
RMC Group PLC (Materials)................................... 16,650 216,960
Rolls-Royce PLC (Industrial & Commercial)................... 62,948 254,382
Royal & Sun Alliance Insurance Group PLC (Finance).......... 77,631 647,925
Royal Bank of Scotland Group PLC (Finance).................. 27,751 417,915
Rugby Group PLC (Consumer Discretionary).................... 19,092 25,139
Safeway PLC (Consumer Discretionary)........................ 49,952 246,356
Sainsbury (J.) PLC (Consumer Discretionary)+................ 88,772 743,106
Schroders PLC (Finance)..................................... 16,612 340,864
Scotia Holdings PLC (Healthcare)+........................... 8,412 12,488
Scottish Hydro-Electric PLC (Utilities)..................... 66,354 768,322
Scottish Power PLC (Utilities).............................. 55,503 588,662
Sears PLC (Consumer Discretionary).......................... 65,606 234,824
Sedgwick Group PLC (Finance)................................ 4,596 16,905
Selfridges PLC (Consumer Discretionary)..................... 11,097 40,269
Skillsgroup PLC (Information Technology).................... 2,557 7,297
Slough Estates PLC (Real Estate)............................ 27,750 124,500
SmithKline Beecham PLC (Healthcare)......................... 282,683 3,469,058
Smiths Industries PLC (Multi-industry)...................... 9,325 132,431
Stagecoach Holdings PLC (Industrial & Commercial)........... 76,063 284,799
Tarmac PLC (Consumer Discretionary)......................... 77,637 144,706
Taylor Woodrow PLC (Industrial & Commercial)................ 44,379 117,121
Tesco PLC (Consumer Discretionary).......................... 316,215 933,629
Thames Water PLC (Industrial & Commercial).................. 35,622 680,990
TI Group PLC (Multi-industry)............................... 27,771 158,034
Torotrak PLC (Consumer Discretionary)+...................... 2,495 4,115
Unilever NV PLC (Consumer Staples).......................... 161,125 1,675,664
United Utilities PLC (Utilities)............................ 38,847 565,792
Vickers PLC (Multi-industry)................................ 4,178 12,129
Vodafone Group PLC (Information Technology)................. 183,157 2,703,868
</TABLE>
- ---------------------
100
<PAGE> 102
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (continued)
Wates City of London Properties PLC (Real Estate)........... 295,610 $ 360,819
Wickes PLC (Consumer Discretionary)......................... 1,754 4,860
William Baird PLC (Consumer Discretionary).................. 19,274 33,381
WPP Group PLC (Industrial & Commercial)..................... 50,471 278,053
Yorkshire Water PLC (Utilities)............................. 32,249 290,700
Zeneca Group PLC (Healthcare)............................... 49,900 2,074,149
-------------
83,518,300
-------------
TOTAL COMMON STOCK (cost $265,503,342)...................... 316,835,339
-------------
PREFERRED STOCK -- 0.4%
---------------------------------------------------------------------------------------------
AUSTRALIA -- 0.1%
News Corp., Ltd. 5.00% (Information & Entertainment)........ 83,450 524,358
-------------
AUSTRIA -- 0.0%
Bau Holding AG (Consumer Discretionary)..................... 2 74
-------------
GERMANY -- 0.3%
SAP AG 0.37% non-voting (Information Technology)............ 1,477 768,776
Volkswagen AG (Consumer Discretionary)...................... 3,430 174,892
-------------
943,668
-------------
ITALY -- 0.0%
Fiat SpA 2.49% (Consumer Discretionary)..................... 85,850 146,426
-------------
TOTAL PREFERRED STOCK (cost $1,095,061)..................... 1,614,526
-------------
<CAPTION>
PRINCIPAL
AMOUNT
(DENOMINATED IN
BONDS & NOTES -- 0.0% LOCAL CURRENCY)
---------------------------------------------------------------------------------------------
<S> <C> <C>
FRANCE -- 0.0%
Establissements Economiques du Casino Guichard-Perrachon SA
4.50% 2001 (Consumer Discretionary)....................... FRF 43,400 16,967
Simco SA 3.25% 2006 (Real Estate)........................... FRF 479 51,948
Sodexho SA 6.00% 2004 (Industrial & Commercial)............. FRF 30,000 5,648
-------------
74,563
-------------
ITALY -- 0.0%
La Rinascente Per L'Esercizio Grandi Magazzini SpA 4.50%
2000 (Consumer Discretionary)............................. ITL 16,000,000 9,544
-------------
PORTUGAL -- 0.0%
Jeronimo Martins SGPS SA zero coupon 2004 (Consumer
Staples).................................................. PTE 1,746,000 11,743
-------------
TOTAL BONDS & NOTES (cost $80,967).......................... 95,850
-------------
</TABLE>
---------------------
101
<PAGE> 103
<TABLE>
<CAPTION> RIGHTS -- 0.0%+ RIGHTS VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C>
GERMANY -- 0.0%
Metro AG 12/03/98 (Consumer Discretionary).................. 8,685 $ 19,966
-------------
PORTUGAL -- 0.0%
INAPA-Investimentos Participacoes e Gestao SA 12/03/98
(Materials)............................................... 800 966
Sociedad de Construcoes Soares de Costa SA 12/31/98
(Consumer Discretionary)(1)............................... 300 1,062
-------------
2,028
-------------
TOTAL RIGHTS (cost $0)...................................... 21,994
-------------
WARRANTS -- 0.0%+ WARRANTS
---------------------------------------------------------------------------------------------
FRANCE -- 0.0%
Sodexho Alliance SA 6/07/04 (Industrial & Commercial)....... 6 2,132
Vivendi 5/02/01 (Multi-industry)............................ 4,504 9,104
-------------
11,236
-------------
HONG KONG -- 0.0%
Hong Kong & China Gas Co., Ltd. 9/30/99 (Utilities)......... 11,700 1,224
Hong Kong & Shanghai Hotels Ltd. 12/10/98 (Information &
Entertainment)............................................ 5,666 7
Hysan Development Co., Ltd. 4/30/99 (Real Estate)........... 6,500 202
-------------
1,433
-------------
ITALY -- 0.0%
La Rinascente SpA 11/30/99 (Finance)........................ 2,650 5,127
Mediobanca SpA 12/31/99 (Finance)........................... 2,000 1,810
Mediobanca SpA 12/20/00 (Finance)........................... 8,740 26,900
-------------
33,837
-------------
SINGAPORE -- 0.0%
Asia Food & Properties Ltd. 7/12/02 (Consumer Staples)...... 1,700 153
Keppel Land Ltd. 12/12/00 (Real Estate)..................... 4,750 950
-------------
1,103
-------------
TOTAL WARRANTS (cost $2,675)................................ 47,609
-------------
TOTAL INVESTMENT SECURITIES (cost $266,682,045)............. 318,615,318
-------------
PRINCIPAL
SHORT-TERM SECURITIES -- 8.4% AMOUNT
---------------------------------------------------------------------------------------------
SHORT-TERM SECURITIES -- 8.4%
Cayman Island Time Deposit with State Street Bank & Trust
Co. 4.00% due 12/01/98 (cost $29,691,000) @............... $ 29,691,000 29,691,000
-------------
TOTAL INVESTMENTS --
(cost $296,373,045) 98.3% 348,306,318
Other assets less liabilities -- 1.7 5,867,924
------ -------------
NET ASSETS -- 100.0% $354,174,242
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
(1) Fair valued security; see Note 2
- ---------------------
102
<PAGE> 104
@ The security or a portion thereof represents collateral for the
following open futures contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
------------------------------------------------------------------------------------------------------
VALUE AS OF UNREALIZED
NUMBER OF EXPIRATION VALUE AT NOVEMBER 30, APPRECIATION/
CONTRACTS DESCRIPTION DATE TRADE DATE 1998 DEPRECIATION
------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
21 Long NIKKEI 225 Index............. December 1998 $2,576,228 $2,552,391 $ (23,837)
81 Long HANG SENG 33 Index........... December 1998 5,476,044 5,463,289 (12,755)
47 Short TOPIX TSE Index.............. December 1998 4,136,809 4,358,931 (222,122)
8 Short DAX 30 Index................. December 1998 1,494,457 1,939,328 (444,871)
143 Long CAC 40 Index................. December 1998 4,317,294 4,846,977 529,683
17 Short FTSE 100 Index............... December 1998 1,358,788 1,494,627 (135,839)
---------
Net Unrealized Depreciation............................................... $(309,741)
=========
</TABLE>
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
----------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
JPY 308,064,900 USD 2,578,380 02/26/99 $ 46,069
*GBP 3,761,000 USD 6,233,105 02/12/99 47,647
JPY 508,152,190 USD 4,381,000 02/08/99 214,330
JPY 504,296,910 USD 4,381,000 02/08/99 245,942
JPY 502,276,279 USD 4,153,000 02/04/99 36,781
JPY 348,517,000 USD 3,079,860 02/04/99 223,719
USD 4,296,813 FRF 24,500,000 02/04/99 23,654
JPY 339,216,000 USD 2,899,827 01/29/99 122,156
*DEM 10,927,696 USD 6,492,138 01/19/99 34,669
JPY 360,377,000 USD 3,112,064 01/19/99 164,906
JPY 285,229,500 USD 2,370,000 01/11/99 39,792
JPY 140,244,750 USD 1,185,000 01/11/99 39,258
*FRF 46,939,421 USD 8,378,000 12/16/98 119,551
*USD 67,942 SGD 115,161 12/09/98 1,930
*USD 573,058 SGD 971,334 12/07/98 16,175
------------
1,376,579
------------
GROSS UNREALIZED
DEPRECIATION
----------------------------------------------------------------
*USD 3,375,972 GBP 2,039,000 02/12/99 (22,569)
*USD 4,360,155 DEM 7,119,000 01/19/99 (153,348)
*DEM 1,167,894 USD 690,000 01/19/99 (140)
JPY 878,526,000 USD 6,723,242 12/21/98 (432,123)
*USD 5,238,198 FRF 29,083,000 12/16/98 (121,380)
*USD 51,206 FRF 286,977 12/16/98 (715)
*USD 7,430,454 FRF 42,069,000 12/16/98 (28,899)
*FRF 24,499,566 USD 4,286,363 12/16/98 (24,052)
JPY 499,971,000 USD 3,828,262 12/10/98 (236,565)
SGD 309,000 USD 183,339 12/09/98 (4,140)
SGD 347,000 USD 205,959 12/09/98 (4,576)
SGD 1,788,000 USD 1,069,250 12/09/98 (15,584)
*SGD 501,000 USD 286,884 12/09/98 (17,088)
SGD 1,193,000 USD 684,648 12/09/98 (39,181)
*SGD 971,334 USD 545,785 12/07/98 (43,448)
------------
(1,143,808)
------------
Net Unrealized Appreciation.......... $ 232,771
============
</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>
DEM -- Deutsche Mark JPY -- Japanese Yen USD -- United States Dollar
FRF -- French Franc PTE -- Portuguese Escudo SGD -- Singapore Dollar
GBP -- Pound Sterling
</TABLE>
See Notes to Financial Statements
---------------------
103
<PAGE> 105
- ---------------------
SUNAMERICA SERIES TRUST
REAL ESTATE PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
COMMON STOCK -- 84.6% SHARES VALUE
---------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL -- 1.0%
Multi-Industry -- 1.0%
The St. Joe Co. ............................................ 25,100 $ 591,419
------------
INFORMATION & ENTERTAINMENT -- 4.8%
Leisure & Tourism -- 4.8%
MeriStar Hotels & Resorts, Inc.+............................ 35,400 95,137
Premier Parks, Inc.+........................................ 59,800 1,622,075
Vail Resorts, Inc.+......................................... 43,700 1,103,425
------------
2,820,637
------------
INFORMATION TECHNOLOGY -- 1.5%
Communication Equipment -- 1.5%
OmniAmerica, Inc.+.......................................... 35,400 867,300
------------
REAL ESTATE -- 77.3%
Real Estate Companies -- 7.7%
Boardwalk Equities, Inc.+................................... 204,700 2,322,932
Catellus Development Corp.+................................. 60,000 843,750
Crescent Operating, Inc.+................................... 1,780 6,898
Reckson Services Industries, Inc.+.......................... 23,808 69,936
Security Capital Group, Inc., Class B+...................... 49,800 734,550
TrizecHahn Corp. ........................................... 28,000 577,500
Vornado Operating, Inc.+.................................... 3,475 22,153
Real Estate Investment Trusts -- 69.6%
Alexandria Real Estate Equities, Inc. ...................... 68,400 2,111,850
AMB Property Corp. ......................................... 41,400 921,150
Apartment Investment & Management Co., Class A.............. 41,175 1,410,244
Avalonbay Communities Inc. ................................. 43,767 1,482,607
Boston Properties, Inc. .................................... 57,500 1,814,844
Brandywine Realty Trust..................................... 30,800 554,400
Camden Property Trust....................................... 31,259 802,966
CenterPoint Properties Corp. ............................... 79,900 2,716,600
Crescent Real Estate Equities Co. .......................... 54,400 1,349,800
Equity Office Properties Trust.............................. 31,697 796,387
Equity Residential Properties Trust......................... 4,400 186,175
Essex Property Trust, Inc. ................................. 30,200 934,312
Gables Residential Trust.................................... 67,900 1,684,769
General Growth Properties, Inc. ............................ 6,400 242,400
Glenborough Realty Trust, Inc. ............................. 27,800 594,225
Golf Trust of America, Inc. ................................ 16,800 438,900
Home Properties of New York, Inc. .......................... 104,800 2,580,700
JDN Realty Corp. ........................................... 86,650 1,792,572
Mack-Cali Realty Corp. ..................................... 48,400 1,436,875
Meditrust Co. .............................................. 14,000 212,625
MeriStar Hospitality Corp. ................................. 35,400 688,088
Parkway Properties, Inc. ................................... 40,100 1,210,519
Patriot American Hospitality, Inc. ......................... 32,016 236,118
Post Properties, Inc. ...................................... 14,300 546,975
Public Storage, Inc. ....................................... 51,700 1,373,281
</TABLE>
- ---------------------
104
<PAGE> 106
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
---------------------------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE (continued)
Real Estate Investment Trusts (continued)
Reckson Associates Realty Corp. ............................ 56,800 $ 1,309,950
Simon Property Group, Inc. ................................. 25,800 764,325
SL Green Realty Corp. ...................................... 40,000 855,000
Spieker Properties, Inc. ................................... 39,700 1,434,162
Starwood Hotels and Resorts................................. 50,600 1,536,975
Storage USA, Inc. .......................................... 47,300 1,501,775
The Rouse Co. .............................................. 63,700 1,739,806
U. S. Restaurant Properties, Inc. .......................... 50,550 1,225,837
Vornado Realty Trust........................................ 69,500 2,641,000
------------
45,705,931
------------
TOTAL COMMON STOCK (cost $57,068,578)....................... 49,985,287
------------
PREFERRED STOCK -- 5.7%
---------------------------------------------------------------------------------------
REAL ESTATE -- 5.7%
Real Estate Investment Trusts -- 5.7%
Camden Property Trust Convertible Series A $2.25............ 700 16,888
Equity Residential Properties Trust Convertible Series E
7.00%..................................................... 29,600 714,100
General Growth Properties, Inc. Convertible 7.75%........... 71,800 1,848,850
SL Green Realty Corp. Convertible 8.00%..................... 19,300 455,962
The Rouse Co. Convertible Series B $3.00.................... 5,400 237,600
Vornado Realty Trust Convertible Series A 6.50%............. 1,700 92,969
------------
3,366,369
------------
TOTAL PREFERRED STOCK (cost $3,502,242)..................... 3,366,369
------------
PRINCIPAL
BONDS & NOTES -- 0.4% AMOUNT
---------------------------------------------------------------------------------------
REAL ESTATE -- 0.4%
Real Estate Investment Trusts -- 0.4%
The Rouse Co. 5.75% 2002
(cost $259,221)........................................... $ 244,000 253,150
------------
TOTAL INVESTMENT SECURITIES (cost $60,830,041).............. 53,604,806
------------
REPURCHASE AGREEMENT -- 9.9%
---------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 9.9%
Agreement with State Street Bank & Trust Co., bearing
interest at 5.25% dated 11/30/98 to be repurchased
12/01/98 in the amount of $5,860,855 and collateralized by
$6,140,000 of Federal Home Loan Mortgage Corp. Discount
Note, due 1/25/99 and having an approximate aggregate
value of $6,040,225 (cost $5,860,000)..................... 5,860,000 5,860,000
------------
TOTAL INVESTMENTS --
(cost $66,690,041) 100.6% 59,464,806
Liabilities in excess of other assets -- (0.6) (363,165)
------ ------------
NET ASSETS -- 100.0% $59,101,641
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
See Notes to Financial Statements
---------------------
105
<PAGE> 107
- ---------------------
SUNAMERICA SERIES TRUST
AGGRESSIVE GROWTH
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
COMMON STOCK -- 85.3% SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 7.2%
Apparel & Textiles -- 3.0%
Gap, Inc. .................................................. 24,300 $ 1,787,569
Gerber Childrenswear, Inc.+................................. 29,600 279,350
Mohawk Industries, Inc.+.................................... 51,100 1,906,669
Housing -- 1.2%
D.R. Horton, Inc. .......................................... 42,000 792,750
Home Depot, Inc. ........................................... 17,000 845,750
Retail -- 3.0%
Abercrombie & Fitch Co.+.................................... 33,800 1,892,800
CDnow, Inc.+................................................ 37,500 900,000
Krause's Furniture, Inc.+................................... 72,500 99,687
Movado Group, Inc. ......................................... 15,700 317,925
Office Depot, Inc.+......................................... 15,500 503,750
Restoration Hardware, Inc.+................................. 8,100 226,294
-------------
9,552,544
-------------
CONSUMER STAPLES -- 0.9%
Household Products -- 0.9%
Steiner Leisure Ltd.+....................................... 49,100 1,221,363
-------------
ENERGY -- 1.4%
Energy Services -- 1.1%
BJ Services Co.+............................................ 25,700 354,981
Diamond Offshore Drilling, Inc. ............................ 14,300 319,962
Friede Goldman International, Inc.+......................... 18,500 231,250
Transocean Offshore, Inc. .................................. 12,500 308,594
Weatherford International, Inc.+............................ 16,300 297,475
Energy Sources -- 0.3%
Smith International, Inc.+.................................. 17,600 424,600
-------------
1,936,862
-------------
FINANCE -- 10.3%
Banks -- 1.7%
Fleet Financial Group, Inc. ................................ 27,000 1,125,562
Hamilton Bancorp, Inc.+..................................... 29,400 742,350
Hibernia Corp. Class A...................................... 24,000 405,000
Financial Services -- 7.2%
Crestar Financial Corp. .................................... 9,500 630,562
Donaldson, Lufkin & Jenrette, Inc. ......................... 32,000 1,286,000
HealthCare Financial Partners, Inc.+........................ 12,500 410,938
Knight/Trimark Group, Inc.+................................. 40,000 632,500
Morgan Stanley, Dean Witter & Co. .......................... 48,000 3,348,000
PaineWebber Group, Inc. .................................... 32,000 1,308,000
Raymond James Financial, Inc. .............................. 19,000 470,250
The Kroll-O'Gara Co.+....................................... 47,400 1,469,400
</TABLE>
- ---------------------
106
<PAGE> 108
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance -- 1.4%
Annuity & Life Re Holdings, Ltd.+........................... 36,000 $ 913,500
Reliance Group Holdings, Inc. .............................. 67,000 933,813
-------------
13,675,875
-------------
HEALTHCARE -- 5.2%
Drugs -- 1.2%
Sepracor, Inc.+............................................. 19,500 1,618,500
Health Services -- 2.4%
Humana, Inc.+............................................... 72,000 1,426,500
U.S. Vision, Inc.+.......................................... 30,000 266,250
United HealthCare Corp. .................................... 32,000 1,444,000
Vision Twenty-One, Inc.+.................................... 13,300 58,187
Medical Products -- 1.6%
ADAC Laboratories+.......................................... 21,600 561,600
MedImmune, Inc.+............................................ 20,900 1,397,687
Nanogen, Inc.+.............................................. 27,000 123,188
Symphonix Devices, Inc.+.................................... 19,200 74,400
-------------
6,970,312
-------------
INDUSTRIAL & COMMERCIAL -- 4.1%
Business Services -- 3.9%
Allied Waste Industries, Inc.+.............................. 49,500 1,008,562
AnswerThink Consulting Group, Inc.+......................... 36,900 714,938
Caliber Learning Network Inc.+.............................. 11,200 53,200
Convergys Corp.+............................................ 40,000 732,500
ITT Educational Services, Inc.+............................. 18,900 621,338
Paychex, Inc. .............................................. 22,000 1,094,500
Sylvan Learning Systems, Inc.+.............................. 32,000 930,000
Transportation -- 0.2%
Offshore Logistics, Inc.+................................... 27,100 337,056
-------------
5,492,094
-------------
INFORMATION & ENTERTAINMENT -- 14.4%
Broadcasting & Media -- 10.2%
Cablevision Systems Corp., Class A+......................... 29,100 1,204,012
Cinar Films, Inc., Class B+................................. 49,000 1,102,500
CMG Information Services, Inc.+............................. 14,200 1,100,500
Comcast Corp., Class A+..................................... 18,600 902,100
DoubleClick, Inc.+.......................................... 24,000 972,000
HA-LO Industries, Inc.+..................................... 48,600 1,552,162
Jacor Communications, Inc.+................................. 18,500 1,076,469
META Group, Inc.+........................................... 17,000 421,813
NetGravity Inc.+............................................ 40,000 850,000
RCM Technologies, Inc.+..................................... 76,100 1,379,312
Snyder Communications, Inc.+................................ 32,700 1,162,894
SportsLine USA, Inc.+....................................... 13,800 238,050
USA Networks, Inc.+......................................... 20,900 659,656
Ziff-Davis, Inc.+........................................... 87,000 995,063
Entertainment Products -- 0.7%
Oakley, Inc.+............................................... 43,200 421,200
Sunglass Hut International, Inc.+........................... 90,300 541,800
Leisure & Tourism -- 3.5%
Carnival Corp., Class A..................................... 31,400 1,083,300
Outback Steakhouse, Inc.+................................... 48,700 1,728,850
</TABLE>
---------------------
107
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT (continued)
Leisure & Tourism (continued)
Royal Caribbean Cruises Ltd. ............................... 32,600 $ 990,225
Travel Services International, Inc.+........................ 35,700 807,713
-------------
19,189,619
-------------
INFORMATION TECHNOLOGY -- 36.0%
Communication Equipment -- 1.0%
Ascend Communications, Inc.+................................ 24,100 1,354,119
Computers & Business Equipment -- 6.2%
Compaq Computer Corp. ...................................... 32,400 1,053,000
Dell Computer Corp.+........................................ 13,300 808,806
FORE Systems, Inc.+......................................... 69,700 1,054,213
Network Appliance, Inc.+.................................... 33,200 2,494,150
Quantum Corp.+.............................................. 64,000 1,416,000
Sun Microsystems, Inc.+..................................... 19,200 1,422,000
Electronics -- 0.9%
Lumen Technologies, Inc.+................................... 156,400 1,182,775
Software -- 21.6%
America Online, Inc.+....................................... 36,000 3,152,250
AVT Corp.+.................................................. 17,900 418,413
Brightstar Information Technology Group, Inc.+.............. 16,000 122,000
BroadVision, Inc.+.......................................... 30,000 798,750
Cambridge Technology Partners, Inc.+........................ 64,000 1,336,000
Compuware Corp.+............................................ 36,500 2,272,125
DSET Corp.+................................................. 86,600 1,190,750
Entrust Technologies, Inc.+................................. 43,000 913,750
Excite, Inc.+............................................... 23,900 1,169,606
Fundtech Ltd+............................................... 16,000 272,000
HBO & Co. .................................................. 42,700 1,064,831
Icon CMT Corp.+............................................. 20,600 275,525
Infoseek Corp.+............................................. 44,800 1,526,000
J.D. Edwards & Co.+......................................... 38,500 1,337,875
Keane, Inc.+................................................ 25,000 718,750
Legato Systems, Inc.+....................................... 52,800 2,524,500
Lycos, Inc.+................................................ 20,200 1,191,800
Macromedia, Inc.+........................................... 15,900 444,206
Micromuse Inc. ............................................. 24,000 547,500
Microsoft Corp.+............................................ 26,000 3,172,000
Saville Systems PLC ADR+.................................... 24,500 479,281
software.net Corp.+......................................... 41,600 904,800
Spyglass, Inc.+............................................. 48,200 1,132,700
Yahoo!, Inc.+............................................... 9,600 1,843,200
Telecommunications -- 6.3%
At Home Corp., Series A+.................................... 30,700 1,788,275
Frontier Corp. ............................................. 38,900 1,171,862
GST Telecommunications, Inc.+............................... 182,800 1,268,175
ICG Communications, Inc.+................................... 45,800 1,053,400
Intermedia Communications, Inc.+............................ 30,300 522,675
Primus Telecommunications Group, Inc.+...................... 23,500 299,625
Qwest Communications International, Inc.+................... 19,000 760,000
STARTEC Global Communications Corp.+........................ 25,700 276,275
Tele-Communications, Inc., Class A+......................... 27,600 1,166,100
-------------
47,900,062
-------------
</TABLE>
- ---------------------
108
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 5.8%
Electric Utilities -- 4.4%
DTE Energy Co. ............................................. 32,000 $ 1,396,000
FPL Group, Inc. ............................................ 16,000 980,000
Niagara Mohawk Power Corp.+................................. 99,000 1,522,125
P P & L Resources, Inc. .................................... 32,000 874,000
Texas Utilities Co. ........................................ 24,000 1,069,500
Telephone -- 1.4%
Century Telephone Enterprises, Inc. ........................ 33,100 1,886,700
-------------
7,728,325
-------------
TOTAL COMMON STOCK (cost $101,539,478)...................... 113,667,056
-------------
<CAPTION>
OPTIONS -- 0.8%+ CONTRACTS
-----------------------------------------------------------------------------------------
<S> <C> <C>
PUT OPTIONS -- 0.7%
Abercrombie & Fitch Co. .................................... 112 50,400
America Online, Inc. ....................................... 239 256,925
At Home Corp. .............................................. 160 136,000
Excite Inc. ................................................ 160 228,000
Lycos, Inc. ................................................ 160 134,000
Yahoo!, Inc. ............................................... 78 218,400
CALL OPTIONS -- 0.1%
Philadelphia Utility Index.................................. 96 85,200
-------------
TOTAL OPTIONS (cost $1,105,282)............................. 1,108,925
-------------
TOTAL INVESTMENT SECURITIES (cost $102,644,760)............. 114,775,981
-------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 13.3% AMOUNT
-----------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 13.3%
Joint Repurchase Agreement Account (Note 3)................. $11,053,000 11,053,000
Joint Repurchase Agreement Account (Note 3)................. 6,593,000 6,593,000
-------------
TOTAL REPURCHASE AGREEMENT (cost $17,646,000)............... 17,646,000
-------------
TOTAL INVESTMENTS --
(cost $120,290,760)
99.4% 132,421,981
Other assets less liabilities --
0.6 760,703
------ -------------
NET ASSETS --
100.0% $133,182,684
------ =============
------
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
109
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- ---------------------
SUNAMERICA SERIES TRUST
EMERGING MARKETS
PORTFOLIO INVESTMENT PORTFOLIO -- NOVEMBER 30, 1998
<TABLE>
<CAPTION>
COMMON STOCK -- 88.4% SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
ARGENTINA -- 5.4%
Banco Rio de La Plata SA ADR+ (Finance)..................... 14,800 $ 173,900
Perez Cos. SA (Multi-industry).............................. 58,100 302,162
Telefonica de Argentina SA ADR (Utilities).................. 12,200 394,975
Transportadora De Gas Del Sur SA ADR (Utilities)............ 27,800 278,000
YPF Sociedad Anonima ADR (Energy)........................... 19,200 566,400
------------
1,715,437
------------
BRAZIL -- 8.6%
Aracruz Celulose SA ADR (Materials)......................... 52,400 566,575
Brazil Realty SA Empreendimentos & Participacoes GDR (Real
Estate)*.................................................. 7,100 81,650
Companhia Cervejaria Brahma ADR (Consumer Staples).......... 21,500 237,844
Companhia Energetica de Minas Gerais ADR (Materials)........ 25,388 642,649
Companhia Forca e Luz Cataguazes SA (Utilities)............. 2,500,000 236,281
Companhia Forca e Luz Cataguezes SA (Utilities)............. 8,068 605
Light-Servicos de Eletricidade SA (Utilities)............... 950,000 170,073
Petroleo Brasileiro SA ADR+ (Energy)........................ 24,800 353,117
Souza Cruz SA (Consumer Staples)............................ 33,200 215,638
Telesp Celular Participacoes SA (Information Technology).... 11,500,000 210,675
------------
2,715,107
------------
CHILE -- 4.7%
Banco Santander Chile ADR (Finance)......................... 12,800 163,200
Chilectra SA ADR (Utilities)................................ 7,500 163,125
Compania de Telecomunicaciones de Chile SA ADR
(Utilities)............................................... 13,700 317,669
Distribucion y Servicio D&S SA+ ADR (Consumer
Discretionary)............................................ 19,000 263,625
Enersis SA ADR (Utilities)(1)............................... 16,200 378,675
Madeco SA ADR(Materials).................................... 19,500 216,937
------------
1,503,231
------------
CHINA -- 0.6%
Beijing Datang Power Generation Company Ltd. (Utilities).... 290,000 93,633
Guangdong Kelon Electric Holdings (Industrial &
Commercial)............................................... 97,000 84,560
------------
178,193
------------
CZECH REPUBLIC -- 1.5%
Ceske Radiokomunikace GDR (Information & Entertainment)*.... 16,200 469,800
------------
EGYPT -- 0.6%
EFG Hermes Holding S A E GDR (Finance)*(1).................. 18,700 196,350
------------
</TABLE>
- ---------------------
110
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
GREECE -- 5.9%
Commercial Bank of Greece (Finance)......................... 4,772 $ 461,328
Hellenic Telecommunications ADR (Information Technology).... 1,944 23,571
National Bank Of Greece (Finance)........................... 3,300 589,832
OTE Greek Telecommunications (Information Technology)....... 13,000 324,178
Panafon Hellenic Telecom SA (Information Technology)........ 12,000 214,948
STET Hellas Telecommunications SA ADR (Information
Technology)............................................... 7,400 257,150
------------
1,871,007
------------
HONG KONG -- 3.7%
Asia Satellite Telecom Holdings Ltd. (Information
Technology)+.............................................. 92,000 152,086
Cheung Kong Holdings Ltd. (Real Estate)..................... 38,000 91,037
China Telecom (HongKong) Ltd.+ (Information Technology)..... 126,000 251,414
Dao Heng Bank Group Ltd. (Finance).......................... 39,000 113,832
Hang Seng Bank Ltd. (Finance)............................... 9,000 79,330
Henderson Land Development Co., Ltd. (Real Estate).......... 18,000 92,057
Johnson Electronic Holdings Ltd. (Information Technology)... 42,000 93,840
Sun Hung Kai Properties Ltd.+ (Real Estate)................. 30,000 215,033
VTech Holdings Ltd. (Information Technology)................ 17,000 73,550
------------
1,162,179
------------
HUNGARY -- 2.8%
Magyar Olaj Rt GDR (Utilities).............................. 1,400 32,725
Magyar Olaj Rt GDR (Utilities)*............................. 18,700 436,163
Magyar Tavkozlesi Rt ADR (Information Technology)........... 6,200 169,337
Pick Szeged Rt GDR (Consumer Staples)*...................... 31,500 248,850
------------
887,075
------------
INDIA -- 6.0%
Bajaj Auto Ltd. (Consumer Discretionary).................... 10,000 130,578
Bharat Heavy Electricals Ltd. (Industrial & Commercial)..... 23,000 126,505
BSES Ltd. GDR (Industrial & Commercial)..................... 14,600 177,025
Gujarat Ambuja Cements Ltd GDR (Industrial & Commercial)*... 25,000 135,000
HDFC Bank Ltd (Finance)..................................... 4,500 229,861
Hindalco Industries Ltd. GDR (Materials)*................... 4,900 56,350
Hindustan Lever Ltd (Consumer Staples)...................... 2,200 82,358
Hindustan Lever Ltd. (Consumer Staples)..................... 4,000 149,742
Hindustan Petroleum Corp. Ltd. (Energy)..................... 22,000 125,707
Indian Hotels Co Ltd GDR (Information & Entertainment)...... 11,000 103,675
Mahanagar Telephone Nigam Ltd. GDR (Information
Technology)............................................... 23,500 248,512
NIIT Ltd (Information Technology)........................... 4,000 128,887
Videsh Sanchar Nigam Ltd. GDR (Information Technology)...... 20,654 210,671
------------
1,904,871
------------
INDONESIA -- 0.2%
PT Telekomunikasi Indonesia ADR+ (Information Technology)... 10,000 67,500
------------
ISRAEL -- 2.3%
Bank Leumi Le Israel (Finance).............................. 241,300 333,958
Formula Systems Ltd. (Information Technology)............... 8,800 217,799
Tadiran Ltd. (Information Technology)....................... 5,200 184,564
------------
736,321
------------
MALAYSIA -- 1.6%
Berjaya Sports Toto Berhad (Information &
Entertainment)(2)......................................... 78,000 80,019
IJM Corp Berhad (Industrial & Commercial)(2)................ 348,000 153,939
Jaya Tiasa Holdings Berhad (Consumer Discretionary)(2)...... 43,000 48,565
</TABLE>
---------------------
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
MALAYSIA (continued)
Malakoff Berhad (Industrial & Commercial)(2)................ 38,000 $ 61,694
PPB Oil Palms Berhad (Consumer Staples)(2).................. 207,000 150,988
------------
495,205
------------
MEXICO -- 11.8%
Alfa SA de CV, Class A (Multi-industry)+.................... 132,000 333,667
Cemex SA de CV, Class B (Materials)......................... 70,500 206,087
Cifra SA de CV (Consumer Discretionary)..................... 199,487 246,039
Coca Cola Femsa SA ADR + (Consumer Staples)................. 20,500 304,937
Corporacion Moctezuma SA de CV (Materials).................. 38,000 35,379
Corporacion Moctezuma SA de CV Class B (Materials).......... 135,700 126,340
Fomento Economico Mexicano SA de CV ADR (Consumer
Staples).................................................. 134,200 314,374
G Accion SA De CV ADR (Real Estate)*(1)..................... 14,400 61,200
Grupo Carso SA de CV (Multi-industry)....................... 92,200 286,135
Grupo Imsa SA de C V ADR (Multi-industry)................... 25,400 247,650
Grupo Mexico SA (Materials)................................. 53,000 128,932
Grupo Televisa SA de CV ADR (Information & Entertainment)... 16,700 424,806
Kimberly-Clark de Mexico SA de CV, Class A (Materials)...... 113,400 309,923
Telefonos de Mexico SA ADR (Utilities)...................... 15,300 712,406
------------
3,737,875
------------
PERU -- 0.7%
Telefonica del Peru SA ADR (Information Technology)......... 14,800 219,225
------------
PHILIPPINES -- 3.2%
Bank Of Philippine Islands (Finance)........................ 45,600 99,533
Benpres Holdings Corp. (Multi-industry)..................... 982,000 144,558
Cosmos Bottling Co. (Consumer Staples)...................... 1,132,200 109,197
International Container Systems, Inc. (Materials)........... 1,505,050 133,697
Manila Electric Co. (Utilities)............................. 72,100 230,574
Philippine Long Distance Telephone Co. (Utilities).......... 5,300 138,553
SM Prime Holdings, Inc. (Real Estate)....................... 781,300 146,742
------------
1,002,854
------------
POLAND -- 1.2%
@Entertainment, Inc. (Information & Entertainment).......... 16,700 121,075
Kredyt Bank PBI S A GDR (Finance)*.......................... 15,200 243,960
------------
365,035
------------
PORTUGAL -- 2.3%
Investec Consultoria International SA (Information &
Entertainment)............................................ 9,600 358,693
Portugal Telecom SA (Information Technology)................ 1,650 71,647
Portugal Telecom SA ADR (Information Technology)............ 1,500 66,094
Semapa Sociedede de Investimento e Gestao, SGPS, SA
(Materials)............................................... 12,000 246,256
------------
742,690
------------
SOUTH AFRICA -- 3.5%
Energy Africa Ltd GDR (Energy)*............................. 7,700 68,337
Liberty Life Association of Africa Ltd. (Finance)........... 19,490 333,464
Momentum Life Assurers, Ltd. (Finance)...................... 132,343 162,733
Sanlam Ltd (Finance)........................................ 324,700 341,655
Sasol Ltd. (Multi-industry)................................. 47,700 185,597
------------
1,091,786
------------
SOUTH KOREA -- 8.2%
Hanjin Heavy Industries (Industrial & Commercial)........... 12,000 77,239
Hankuk Glass Industry Co., Ltd (Materials).................. 5,500 92,255
Hanwha Chemical Corp. (Materials)........................... 24,000 70,498
</TABLE>
- ---------------------
112
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
SOUTH KOREA (continued)
Housing & Commercial Bank, Korea (Finance).................. 11,000 $ 75,128
Korea Electric Power Corp. (Utilities)...................... 29,300 564,366
SK Telecom Co. Ltd. (Information & Entertainment)........... 282 198,203
Nong Shim Co (Consumer Staples)............................. 2,200 128,893
Pohang Iron & Steel Co., Ltd. (Materials)................... 2,650 145,316
Samsung Display Devices Co. (Information Technology)........ 1,600 58,170
Samsung Electronics, Co. (Information Technology)........... 11,137 595,284
Samsung Fire & Marine Insurance (Finance)+.................. 500 130,016
Samsung Securities Co (Finance)............................. 16,300 256,405
Sindo Ricoh Co. (Information Technology).................... 2,000 63,563
Ssangyong Oil Refining Co., Ltd. (Energy)................... 11,000 153,612
------------
2,608,948
------------
TAIWAN, PROVINCE OF CHINA -- 6.5%
Acer, Inc. GDR (Information Technology)..................... 26,412 174,980
ASE Test Ltd. (Information Technology)...................... 8,000 245,000
Asustek Computer, Inc. GDR (Information Technology)......... 23,750 201,388
Bank Sinopac (Finance)...................................... 290,790 116,513
Compal Electronics, Ltd. (Information Technology)........... 45,000 151,872
Hon Hai Precision Industry+ (Information Technology)........ 36,780 199,515
Pacific Electrical Wire & Cables Co. (Industrial &
Commercial)............................................... 260,540 206,376
President Chain Stores Corp. (Consumer Discretionary)....... 76,620 240,877
Siliconware Precision Industries Co. (Information
Technology)............................................... 85,000 163,739
Taiwan Semiconducter Manufacturing Co. Ltd. ADR (Information
Technology)............................................... 24,330 364,950
------------
2,065,210
------------
THAILAND -- 2.9%
Advanced Information Services PCL alien shares (Information
& Entertainment).......................................... 25,500 148,338
Bangkok Bank PCL alien shares (Finance)..................... 76,200 139,313
Electricity Generating PCL (Utilities)...................... 50,300 133,762
PTT Exploration & Production PCL alien shares (Energy)...... 11,000 88,366
Siam City Cement PCL alien shares (Materials)............... 10,000 209,418
Thai Farmers Bank alien shares (Finance).................... 86,000 154,848
United International Broadcasting Corp. PCL (Information &
Entertainment)............................................ 83,700 46,371
------------
920,416
------------
TURKEY -- 2.8%
Haci Omer Sabanci Holdings AS ADR (Finance)*................ 54,920 237,529
Migros Turk TAS (Consumer Discretionary).................... 260,000 256,782
Vestel Elektronik Sanayi ve Ticaret AS (Information
Technology)............................................... 1,160,800 112,732
Yapi Ve Kredi Bankasi AS (Finance).......................... 3,880 46,366
Yapi Ve Kredi Bankasi AS GDR (Finance)...................... 20,580 245,931
------------
899,340
------------
UNITED KINGDOM -- 1.4%
Billiton PLC (Materials).................................... 97,300 209,376
Coca Cola Beverage PLC (Consumer Staples)................... 21,600 44,891
Lonrho PLC (Multi-industry)................................. 36,038 192,448
------------
446,715
------------
TOTAL COMMON STOCK (cost $29,618,747)....................... 28,002,370
------------
</TABLE>
---------------------
113
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<TABLE>
<CAPTION> PREFERRED STOCK -- 8.4% SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
BRAZIL -- 7.4%
Banco Bradesco SA (Finance)................................. 47,600,190 $ 344,843
Embraer (Industrial & Commercial)........................... 7,000,000 76,359
Embratel Participacoes SA (Information Technology).......... 10,800,000 175,369
Gerdau SA (Materials)....................................... 23,200,000 227,962
Tele Centro Sul Participacoes SA (Information Technology)... 34,600,000 403,076
Tele Nordeste Celular Participacoes SA (Information
Technology)............................................... 27,600,000 466,550
Telecomunicacoes de Sao Paulo SA (Utilities)................ 893 152
Telesp Cellular Participacoes SA (Information Technology)... 27,600,000 284,986
Telesp Participacoes SA (Information Technology)............ 13,000,000 364,810
------------
2,344,107
------------
HUNGARY -- 1.0%
OTP Bank Rt (Finance)....................................... 7,700 329,284
------------
TOTAL PREFERRED STOCK (cost $2,510,678)..................... 2,673,391
------------
PRINCIPAL
BONDS & NOTES -- 0.5% AMOUNT
----------------------------------------------------------------------------------------
RUSSIA -- 0.5%
Ministry of Finance Russia 12.75% 2028...................... $ 545,000 152,600
------------
TOTAL INVESTMENT SECURITIES (cost $32,453,050).............. 30,828,361
------------
REPURCHASE AGREEMENT -- 5.2%
----------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 5.2%
Agreement with SG Warburg & Co., Inc., bearing interest at
5.3%, dated 11/30/98 to be repurchased 12/01/98 in the
amount of $1,637,241 and collateralized by $1,022,000 of
U.S. Treasury Notes, bearing interest at 10.625%, due
08/15/15 and having an approximate aggregate value of
$1,677,697 (cost $1,637,000).............................. 1,637,000 1,637,000
------------
TOTAL INVESTMENTS --
(cost $34,090,050) 102.5% 32,465,361
Liabilities in excess of other assets -- (2.5) (780,083)
------ ------------
NET ASSETS -- 100.0% $ 31,685,278
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
(1) Fair valued security; see Note 2
(2) Fair valued foreign exchange rate; see Note 2
- ---------------------
114
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<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
-----------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*USD 69,292 PHP 3,229,000 02/03/99 $ 11,275
*USD 45,696 PHP 2,118,000 02/03/99 7,151
---------
$ 18,426
=========
GROSS UNREALIZED
DEPRECIATION
-----------------------------------------------------------------
*PHP 20,407,000 USD 456,532 02/03/99 (52,644)
---------
Net Unrealized Depreciation....... $(34,218)
=========
</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.
PHP -- Philippine Peso
USD -- United States Dollar
See Notes to Financial Statements
---------------------
115
<PAGE> 117
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1998
<TABLE>
<CAPTION>
CASH GLOBAL CORPORATE HIGH-YIELD WORLDWIDE
MANAGEMENT BOND BOND BOND HIGH INCOME
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*.......... $ -- $105,743,235 $125,833,480 $259,329,634 $111,413,509
Short-term securities*.................... 220,072,621 6,221,676 15,199,621 3,980,000 2,987,140
Repurchase agreements (cost equals
market).................................. -- -- -- 16,059,000 4,612,000
Cash...................................... 7,235,410 954 4,403 660 --
Foreign currency.......................... -- 9,513 -- -- 214
Receivables for--
Fund shares sold......................... 4,756,205 215,048 611,293 1,650,614 205,537
Dividends and accrued interest........... 1,250,357 2,445,619 2,478,197 5,771,151 3,068,092
Sales of investments..................... -- -- 117,248 846,972 966,607
Variation margin on futures contracts.... -- -- -- -- 16,496
Prepaid expenses.......................... 5,597 2,530 2,126 4,999 2,291
Unrealized appreciation on forward foreign
currency contracts....................... -- 2,048,517 -- -- 36,954
------------------------------------------------------------------------
233,320,190 116,687,092 144,246,368 287,643,030 123,308,840
------------------------------------------------------------------------
LIABILITIES:
Payables for--
Fund shares redeemed..................... 9,522,109 190,899 83,400 466,074 144,515
Management fees.......................... 110,896 67,011 71,938 139,272 95,880
Purchases of investments................. -- -- 478,951 2,404,490 1,687,876
Variation margin on futures contracts.... -- -- -- -- 7,183
Unrealized depreciation on forward foreign
currency contracts....................... -- 941,575 -- -- 2,079
Other accrued expenses.................... 47,094 59,392 50,793 52,650 81,757
Due to Custodian.......................... -- -- -- 46 --
Written call options at value (proceeds
$1,548 on Asset Allocation).............. -- -- -- -- --
------------------------------------------------------------------------
9,680,099 1,258,877 685,082 3,062,532 2,019,290
------------------------------------------------------------------------
NET ASSETS................................ $223,640,091 $115,428,215 $143,561,286 $284,580,498 $121,289,550
========================================================================
Shares of beneficial interest outstanding
(unlimited shares authorized)............ 21,137,846 9,803,196 12,139,847 25,920,925 11,763,769
Net asset value per share................. $ 10.58 $ 11.77 $ 11.83 $ 10.98 $ 10.31
========================================================================
COMPOSITION OF NET ASSETS:
Capital paid in........................... $213,571,824 $103,424,448 $135,935,380 $288,468,092 $144,716,391
Accumulated undistributed net investment
income................................... 10,054,177 2,981,658 6,650,194 25,603,717 11,808,237
Accumulated undistributed net realized
gain (loss) on investments, future
contracts and options contracts.......... (7,585) 3,617,939 (336,307) (974,755) (30,065,617)
Unrealized appreciation (depreciation) on
investments.............................. 21,675 4,269,088 1,312,019 (28,516,556) (5,187,297)
Unrealized foreign exchange gain on other
assets and liabilities................... -- 1,135,082 -- -- 35,136
Unrealized appreciation (depreciation) on
futures and written options contracts.... -- -- -- -- (17,300)
------------------------------------------------------------------------
$223,640,091 $115,428,215 $143,561,286 $284,580,498 $121,289,550
========================================================================
---------------
* Cost
Investment securities.................... $ -- $101,473,389 $124,510,139 $287,807,490 $116,574,898
========================================================================
Short-term securities.................... $220,050,946 $ 6,222,434 $ 15,210,943 $ 4,018,700 $ 3,013,048
========================================================================
<CAPTION>
BALANCED/
PHOENIX
SUNAMERICA INVESTMENT ASSET
BALANCED COUNSEL ALLOCATION
------------------------------------------ -------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value*.......... $138,102,643 $118,908,155 $ 591,562,525
Short-term securities*.................... -- 11,774,302 16,214,270
Repurchase agreements (cost equals
market).................................. 9,599,000 -- 125,100,000
Cash...................................... 241 2,601 --
Foreign currency.......................... -- -- --
Receivables for--
Fund shares sold......................... 1,192,052 343,173 1,251,076
Dividends and accrued interest........... 430,789 558,931 3,376,867
Sales of investments..................... 399,685 -- 28,864,436
Variation margin on futures contracts.... -- -- 71,392
Prepaid expenses.......................... 1,579 2,397 12,655
Unrealized appreciation on forward foreign
currency contracts....................... -- -- --
-------------------------------------------
149,725,989 131,589,559 766,453,221
-------------------------------------------
LIABILITIES:
Payables for--
Fund shares redeemed..................... 371,225 39,750 1,267,487
Management fees.......................... 76,558 70,294 339,506
Purchases of investments................. -- -- 48,171,855
Variation margin on futures contracts.... -- -- 3,517,421
Unrealized depreciation on forward foreign
currency contracts....................... -- -- --
Other accrued expenses.................... 36,599 39,775 92,584
Due to Custodian.......................... -- -- 19,035
Written call options at value (proceeds
$1,548 on Asset Allocation).............. -- -- 63
-------------------------------------------
484,382 149,819 53,407,951
-------------------------------------------
NET ASSETS................................ $149,241,607 $131,439,740 $ 713,045,270
===========================================
Shares of beneficial interest outstanding
(unlimited shares authorized)............ 9,557,707 8,785,397 48,147,133
===========================================
Net asset value per share................. $ 15.61 $ 14.96 $ 14.81
COMPOSITION OF NET ASSETS:
Capital paid in........................... $130,743,616 $112,888,557 $ 657,595,100
Accumulated undistributed net investment
income................................... 1,745,210 2,758,518 18,708,081
Accumulated undistributed net realized
gain (loss) on investments, future
contracts and options contracts.......... 3,107,401 980,084 15,296,960
Unrealized appreciation (depreciation) on
investments.............................. 13,645,380 14,812,581 12,033,740
Unrealized foreign exchange gain on other
assets and liabilities................... -- -- 90
Unrealized appreciation (depreciation) on
futures and written options contracts.... -- -- 9,411,299
-------------------------------------------
$149,241,607 $131,439,740 $ 713,045,270
===========================================
---------------
* Cost
Investment securities.................... $124,457,263 $104,095,574 $ 579,591,240
===========================================
Short-term securities.................... $ -- $ 11,774,302 $ 16,151,815
===========================================
</TABLE>
See Notes to Financial Statements
- ---------------------
116
<PAGE> 118
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES (continued)
NOVEMBER 30, 1998
<TABLE>
<CAPTION>
GROWTH- FEDERATED VENTURE "DOGS" OF
UTILITY INCOME VALUE VALUE WALL STREET
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*.................... $63,112,237 $ 924,800,373 $142,934,891 $1,611,780,898 $63,309,364
Short-term securities*.............................. 5,667,818 94,210,044 4,744,000 115,231,709 --
Repurchase agreements (cost equals market).......... -- -- -- -- 1,147,000
Cash................................................ 233 541 739,527 657 776
Foreign currency.................................... 1,032 -- -- -- --
Receivables for--
Fund shares sold................................... 337,507 2,589,712 521,004 3,419,055 697,968
Dividends and accrued interest..................... 177,501 631,840 260,646 1,042,685 201,764
Sales of investments............................... 216,779 1,647,570 517,221 650,674 --
Prepaid expenses.................................... 808 14,905 1,755 25,857 525
Deferred organizational expense..................... -- -- -- -- 4,114
--------------------------------------------------------------------------
69,513,915 1,023,894,985 149,719,044 1,732,151,535 65,361,511
--------------------------------------------------------------------------
LIABILITIES:
Payables for--
Fund shares redeemed............................... 109,521 2,699,911 2,522,031 3,849,170 8,434
Management fees.................................... 40,859 443,917 89,220 1,000,814 29,924
Purchases of investments........................... 1,279,516 -- 1,169,909 1,729,730 --
Variation margin on futures contracts.............. -- 1,069,875 -- -- --
Other accrued expenses.............................. 35,311 91,155 38,045 160,985 39,972
--------------------------------------------------------------------------
1,465,207 4,304,858 3,819,205 6,740,699 78,330
--------------------------------------------------------------------------
NET ASSETS.......................................... $68,048,708 $1,019,590,127 $145,899,839 $1,725,410,836 $65,283,181
==========================================================================
Shares of beneficial interest outstanding (unlimited
shares authorized)................................. 4,705,418 42,072,781 9,084,848 74,708,785 6,655,623
Net asset value per share........................... $ 14.46 $ 24.23 $ 16.06 $ 23.10 $ 9.81
==========================================================================
COMPOSITION OF NET ASSETS:
Capital paid in..................................... $59,783,834 $ 717,788,150 $123,906,498 $1,336,913,820 $63,322,868
Accumulated undistributed net investment income..... 1,327,226 6,292,994 1,141,295 12,945,662 431,867
Accumulated undistributed net realized gain on
investments, future contracts and options
contracts.......................................... 2,886,214 42,977,449 7,473,199 56,134,983 721
Unrealized appreciation on investments.............. 4,051,443 246,802,330 13,378,847 319,416,104 1,527,725
Unrealized foreign exchange gain (loss) on other
assets and liabilities............................. (9) 141 -- 267 --
Unrealized appreciation on futures and written
options contracts.................................. -- 5,729,063 -- -- --
--------------------------------------------------------------------------
$68,048,708 $1,019,590,127 $145,899,839 $1,725,410,836 $65,283,181
==========================================================================
---------------
* Cost
Investment securities.............................. $59,060,472 $ 677,998,043 $129,556,044 $1,292,364,794 $61,781,639
==========================================================================
Short-term securities.............................. $ 5,668,140 $ 94,210,044 $ 4,744,000 $ 115,231,709 $ --
==========================================================================
<CAPTION>
GROWTH/
PHOENIX
PUTNAM INVESTMENT
GROWTH COUNSEL
---------------------------------------------------- ----------------------------
<S> <C> <C>
ASSETS:
Investment securities, at value*.................... $384,061,184 $ 232,625,353
Short-term securities*.............................. 2,581,072 7,174,764
Repurchase agreements (cost equals market).......... 11,656,000 --
Cash................................................ 705 4,191
Foreign currency.................................... -- --
Receivables for--
Fund shares sold................................... 1,252,047 210,390
Dividends and accrued interest..................... 275,056 123,219
Sales of investments............................... 830,113 --
Prepaid expenses.................................... 6,326 5,685
Deferred organizational expense..................... -- --
----------------------------
400,662,503 240,143,602
----------------------------
LIABILITIES:
Payables for--
Fund shares redeemed............................... 449,313 1,673,856
Management fees.................................... 250,242 123,764
Purchases of investments........................... 1,043,160 --
Variation margin on futures contracts.............. -- --
Other accrued expenses.............................. 56,573 47,510
----------------------------
1,799,288 1,845,130
----------------------------
NET ASSETS.......................................... $398,863,215 $ 238,298,472
============================
Shares of beneficial interest outstanding (unlimited
shares authorized)................................. 19,740,492 15,502,022
Net asset value per share........................... $ 20.21 $ 15.37
============================
COMPOSITION OF NET ASSETS:
Capital paid in..................................... $293,277,062 $ 176,423,275
Accumulated undistributed net investment income..... 267,117 382,750
Accumulated undistributed net realized gain on
investments, future contracts and options
contracts.......................................... 10,441,732 11,688,506
Unrealized appreciation on investments.............. 94,877,304 49,803,941
Unrealized foreign exchange gain (loss) on other
assets and liabilities............................. -- --
Unrealized appreciation on futures and written
options contracts.................................. -- --
----------------------------
$398,863,215 $ 238,298,472
============================
---------------
* Cost
Investment securities.............................. $289,183,880 $ 182,821,412
============================
Short-term securities.............................. $ 2,581,072 $ 7,174,764
============================
</TABLE>
See Notes to Financial Statements
---------------------
117
<PAGE> 119
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES (continued)
NOVEMBER 30, 1998
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
ALLIANCE GLOBAL GROWTH & DIVERSIFIED REAL
GROWTH EQUITIES INCOME EQUITIES ESTATE
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*................ $1,381,408,947 $397,120,527 $116,005,527 $318,615,318 $53,604,806
Short-term securities*.......................... 29,774,244 16,854,000 7,958,082 29,691,000 --
Repurchase agreements (cost equals market)...... -- -- 5,698,000 -- 5,860,000
Cash............................................ 489 406 667 2,866,726 3,975
Foreign currency................................ -- 4,302,771 36,530 434,388 --
Receivables for--
Fund shares sold............................... 3,591,289 2,178,214 596,451 7,530,162 203,120
Dividends and accrued interest................. 470,963 692,968 258,988 1,059,044 26,948
Foreign currency contracts..................... -- 3,001,385 740,502 -- --
Sales of investments........................... 7,967,167 3,568,220 -- 2,063 --
Variation margin on futures contracts.......... -- -- -- 541,996 --
Prepaid expenses................................ 18,944 7,981 1,415 8,616 783
Deferred organizational expenses................ -- -- 4,563 -- 4,563
Unrealized appreciation on forward foreign
currency contracts............................. -- -- 59,875 1,376,579 --
Due from Adviser................................ -- -- -- -- --
---------------------------------------------------------------------------
1,423,232,043 427,726,472 131,360,600 362,125,892 59,704,195
---------------------------------------------------------------------------
LIABILITIES:
Payables for--
Fund shares redeemed........................... 1,705,456 252,191 220,691 5,295,845 26,008
Management fees................................ 585,151 244,521 100,280 283,035 37,822
Foreign currency contracts..................... -- 2,991,853 743,554 -- --
Purchases of investments....................... 24,498,978 2,871,680 704,070 2,475 507,575
Variation margin on futures contracts.......... 190,200 -- -- 989,839 --
Unrealized depreciation on forward foreign
currency contracts............................. -- 852,319 1,147,342 1,143,808 --
Other accrued expenses.......................... 112,238 155,919 100,796 236,648 31,149
---------------------------------------------------------------------------
27,092,023 7,368,483 3,016,733 7,951,650 602,554
---------------------------------------------------------------------------
NET ASSETS...................................... $1,396,140,020 $420,357,989 $128,343,867 $354,174,242 $59,101,641
===========================================================================
Shares of beneficial interest outstanding
(unlimited shares authorized).................. 49,783,374 24,867,476 11,343,208 27,543,557 5,984,232
Net asset value per share....................... $ 28.04 $ 16.90 $ 11.31 $ 12.86 $ 9.88
===========================================================================
COMPOSITION OF NET ASSETS:
Capital paid in................................. $ 998,116,331 $337,951,338 $125,160,210 $304,887,209 $65,875,343
Accumulated undistributed net investment income
(loss)......................................... 2,757,752 4,369,876 846,246 5,133,814 1,549,439
Accumulated undistributed net realized gain
(loss) on investments, future contracts and
options contracts.............................. 131,205,631 23,489,013 1,318,384 (7,731,689) (1,097,906)
Unrealized appreciation (depreciation) on
investments.................................... 263,302,806 55,369,241 2,100,096 51,933,273 (7,225,235)
Unrealized foreign exchange gain (loss) on other
assets and liabilities......................... -- (821,479) (1,081,069) 261,376 --
Unrealized appreciation (depreciation) on
futures and written options contracts.......... 757,500 -- -- (309,741) --
---------------------------------------------------------------------------
$1,396,140,020 $420,357,989 $128,343,867 $354,174,242 $59,101,641
===========================================================================
---------------
* Cost
Investment securities.......................... $1,118,106,141 $341,751,286 $113,905,431 $266,682,045 $60,830,041
===========================================================================
Short-term securities.......................... $ 29,774,244 $ 16,854,000 $ 7,958,082 $ 29,691,000 $ --
===========================================================================
<CAPTION>
AGGRESSIVE EMERGING
GROWTH MARKETS
------------------------------------------------ ---------------------------
<S> <C> <C>
ASSETS:
Investment securities, at value*................ $114,775,981 $ 30,828,361
Short-term securities*.......................... -- --
Repurchase agreements (cost equals market)...... 17,646,000 1,637,000
Cash............................................ 7 83,747
Foreign currency................................ -- 333,883
Receivables for--
Fund shares sold............................... 661,432 91,448
Dividends and accrued interest................. 18,363 98,727
Foreign currency contracts..................... -- 928,757
Sales of investments........................... 4,242,921 286,694
Variation margin on futures contracts.......... -- --
Prepaid expenses................................ 1,912 391
Deferred organizational expenses................ -- 4,563
Unrealized appreciation on forward foreign
currency contracts............................. -- 18,426
Due from Adviser................................ -- 2,559
---------------------------
137,346,616 34,314,556
---------------------------
LIABILITIES:
Payables for--
Fund shares redeemed........................... 598,291 475,160
Management fees................................ 76,091 31,759
Foreign currency contracts..................... -- 929,834
Purchases of investments....................... 3,450,153 1,075,215
Variation margin on futures contracts.......... -- --
Unrealized depreciation on forward foreign
currency contracts............................. -- 52,644
Other accrued expenses.......................... 39,397 64,666
---------------------------
4,163,932 2,629,278
---------------------------
NET ASSETS...................................... $133,182,684 $ 31,685,278
===========================
Shares of beneficial interest outstanding
(unlimited shares authorized).................. 10,814,111 5,092,143
Net asset value per share....................... $ 12.32 $ 6.22
===========================
COMPOSITION OF NET ASSETS:
Capital paid in................................. $115,582,910 $ 43,328,507
Accumulated undistributed net investment income
(loss)......................................... 352,153 (52,849)
Accumulated undistributed net realized gain
(loss) on investments, future contracts and
options contracts.............................. 5,116,400 (9,932,791)
Unrealized appreciation (depreciation) on
investments.................................... 12,131,221 (1,624,689)
Unrealized foreign exchange gain (loss) on other
assets and liabilities......................... -- (32,900)
Unrealized appreciation (depreciation) on
futures and written options contracts.......... -- --
---------------------------
$133,182,684 $ 31,685,278
===========================
---------------
* Cost
Investment securities.......................... $102,644,760 $ 32,453,050
===========================
Short-term securities.......................... $ -- $ --
===========================
</TABLE>
See Notes to Financial Statements
- ---------------------
118
<PAGE> 120
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1998
<TABLE>
<CAPTION>
CASH GLOBAL CORPORATE HIGH-YIELD WORLDWIDE SUNAMERICA
MANAGEMENT BOND BOND BOND HIGH INCOME BALANCED
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCOME:
Interest....................... $11,230,912 $ 5,355,321 $7,260,944 $ 26,975,805 $ 13,183,219 $ 1,741,460
Dividends...................... -- -- 175,643 456,053 127,595 662,695
----------------------------------------------------------------------------------
Total income*.............. 11,230,912 5,355,321 7,436,587 27,431,858 13,310,814 2,404,155
----------------------------------------------------------------------------------
EXPENSES:
Management fees................ 1,059,551 728,940 654,148 1,667,268 1,333,369 570,440
Custodian fees................. 57,835 123,260 87,835 81,330 69,770 43,705
Auditing fees.................. 23,895 29,030 24,025 24,000 28,925 23,910
Reports to investors........... 12,860 4,535 5,575 10,579 5,650 6,202
Legal fees..................... 2,014 1,840 1,753 2,673 2,014 1,840
Trustees' fees................. 1,448 484 587 1,399 724 397
Amortization of organizational
expenses..................... 1,218 671 671 649 -- --
Interest expense............... -- -- -- 14,905 -- --
Other expenses................. 5,985 3,400 2,627 5,509 5,310 2,225
----------------------------------------------------------------------------------
Total expenses............... 1,164,806 892,160 777,221 1,808,312 1,445,762 648,719
----------------------------------------------------------------------------------
Net investment income............ 10,066,106 4,463,161 6,659,366 25,623,546 11,865,052 1,755,436
----------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCIES:
Net realized gain (loss) on
investments.................. (6,901) 4,786,517 (60,443) (861,067) (30,080,600) 3,122,205
Net realized gain on futures
and options contracts........ -- -- -- -- 17,693 --
Net realized foreign exchange
gain (loss) on other assets
and liabilities.............. -- (1,286,313) -- -- (33,125) --
Change in unrealized
appreciation/depreciation on
investments.................. 25,431 3,845,490 (565,665) (30,181,712) (3,067,152) 10,080,246
Change in unrealized foreign
exchange gain/ loss on other
assets and liabilities....... -- (146,183) -- -- 35,136 --
Change in unrealized
appreciation/depreciation on
futures and option
contracts.................... -- -- -- -- (17,300) --
----------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments and
foreign currencies............. 18,530 7,199,511 (626,108) (31,042,779) (33,145,348) 13,202,451
----------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS..................... $10,084,636 $11,662,672 $6,033,258 $ (5,419,233) $(21,280,296) $14,957,887
==================================================================================
---------------
* Net of foreign withholding
taxes on interest and dividends
of............................. $ -- $ -- $ 2,748 $ -- $ 13,957 $ 4,807
==================================================================================
<CAPTION>
BALANCED/
PHOENIX
INVESTMENT ASSET
COUNSEL ALLOCATION
--------------------------------- --------------------------
<S> <C> <C>
INCOME:
Interest....................... $ 3,152,118 $ 17,716,410
Dividends...................... 486,611 6,446,320
--------------------------
Total income*.............. 3,638,729 24,162,730
--------------------------
EXPENSES:
Management fees................ 762,995 3,758,570
Custodian fees................. 77,220 235,950
Auditing fees.................. 23,930 21,965
Reports to investors........... 3,954 35,765
Legal fees..................... 3,614 3,405
Trustees' fees................. 724 3,299
Amortization of organizational
expenses..................... -- 671
Interest expense............... -- --
Other expenses................. 3,423 15,048
--------------------------
Total expenses............... 875,860 4,074,673
--------------------------
Net investment income............ 2,762,869 20,088,057
--------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCIES:
Net realized gain (loss) on
investments.................. 1,095,104 17,614,687
Net realized gain on futures
and options contracts........ -- 4,861,214
Net realized foreign exchange
gain (loss) on other assets
and liabilities.............. -- 56,315
Change in unrealized
appreciation/depreciation on
investments.................. 10,235,149 (38,559,922)
Change in unrealized foreign
exchange gain/ loss on other
assets and liabilities....... -- (537)
Change in unrealized
appreciation/depreciation on
futures and option
contracts.................... -- 9,164,216
--------------------------
Net realized and unrealized gain
(loss) on investments and
foreign currencies............. 11,330,253 (6,864,027)
--------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS..................... $14,093,122 $ 13,224,030
==========================
---------------
* Net of foreign withholding
taxes on interest and dividends
of............................. $ 7,164 $ 24,666
==========================
</TABLE>
See Notes to Financial Statements
---------------------
119
<PAGE> 121
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF OPERATIONS (continued)
FOR THE YEAR ENDED NOVEMBER 30, 1998
<TABLE>
<CAPTION>
GROWTH/
PHOENIX
GROWTH- FEDERATED VENTURE "DOGS" OF PUTNAM INVESTMENT
UTILITY INCOME VALUE VALUE WALL STREET# GROWTH COUNSEL
<S> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
INCOME:
Interest................ $ 175,044 $ 4,338,253 $ 152,288 $ 6,630,872 $ 46,382 $ 593,826 $ 319,029
Dividends............... 1,615,024 6,786,492 1,847,018 17,319,322 564,668 2,426,681 1,672,684
--------------------------------------------------------------------------------------------------
Total income*....... 1,790,068 11,124,745 1,999,306 23,950,194 611,050 3,020,507 1,991,713
--------------------------------------------------------------------------------------------------
EXPENSES:
Management fees......... 372,897 4,533,481 764,690 10,509,956 126,908 2,581,835 1,467,118
Custodian fees.......... 44,030 189,330 50,630 328,255 40,905 106,055 81,620
Auditing fees........... 24,560 21,275 23,945 10,355 16,650 24,035 23,895
Reports to investors.... 2,848 48,055 6,295 93,375 4,288 14,405 8,705
Legal fees.............. 1,753 4,709 1,840 7,659 3,500 2,499 3,934
Trustees' fees.......... 365 4,131 567 7,831 244 1,676 1,366
Amortization of
organizational
expenses.............. -- 649 -- -- 604 649 649
Other expenses.......... 1,628 16,206 2,227 29,611 1,804 6,450 6,598
--------------------------------------------------------------------------------------------------
Total expenses before
reimbursement....... 448,081 4,817,836 850,194 10,987,042 194,903 2,737,604 1,593,885
Expenses reimbursed by
the investment
adviser............. -- -- -- -- (15,116) -- --
--------------------------------------------------------------------------------------------------
Net investment income..... 1,341,987 6,306,909 1,149,112 12,963,152 431,263 282,903 397,828
--------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gain on
investments........... 2,895,401 42,172,573 7,493,632 56,164,428 721 10,488,436 11,774,676
Net realized gain on
futures and options
contracts............. -- 1,162,383 -- -- -- -- --
Net realized foreign
exchange gain (loss)
on other assets and
liabilities........... (8,436) -- 29 127 -- -- --
Change in unrealized
appreciation/
depreciation on
investments........... 1,997,996 98,775,893 7,034,153 77,804,105 1,527,725 49,263,300 25,041,204
Change in unrealized
foreign exchange
gain/loss on other
assets and
liabilities........... -- 141 -- (187) -- -- --
Change in unrealized
appreciation/
depreciation on
futures and option
contracts............. -- 5,540,263 -- -- -- -- --
--------------------------------------------------------------------------------------------------
Net realized and
unrealized gain on
investments and foreign
currencies.............. 4,884,961 147,651,253 14,527,814 133,968,473 1,528,446 59,751,736 36,815,880
--------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS.............. $6,226,948 $153,958,162 $15,676,926 $146,931,625 $1,959,709 $60,034,639 $ 37,213,708
==================================================================================================
---------------
* Net of foreign
withholding taxes on
interest and dividends
of...................... $ 3,081 $ 2,242 $ 17,377 $ 147,842 $ 3,554 $ 820 $ 24,103
==================================================================================================
</TABLE>
# Commenced operations April 1, 1998
See Notes to Financial Statements
- ---------------------
120
<PAGE> 122
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF OPERATIONS (continued)
FOR THE YEAR ENDED NOVEMBER 30, 1998
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
ALLIANCE GLOBAL GROWTH & DIVERSIFIED REAL
GROWTH EQUITIES INCOME EQUITIES ESTATE
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INCOME:
Interest............................... $ 745,476 $ 663,866 $ 390,097 $ 2,241,539 $ 299,076
Dividends.............................. 8,002,163 4,580,487 1,853,069 5,318,868 2,219,597
------------------------------------------------------------------------
Total income*...................... 8,747,639 5,244,353 2,243,166 7,560,407 2,518,673
------------------------------------------------------------------------
EXPENSES:
Management fees........................ 5,626,794 2,893,944 922,124 3,095,975 398,357
Custodian fees......................... 232,950 472,505 303,325 761,605 34,945
Auditing fees.......................... 18,750 29,000 29,075 29,015 23,970
Reports to investors................... 66,270 15,265 6,245 12,175 2,323
Legal fees............................. 7,820 2,390 1,383 2,499 1,383
Trustees' fees......................... 5,579 1,971 358 1,662 1,113
Amortization of organizational
expenses............................. 649 649 1,296 -- 1,296
Other expenses......................... 20,266 12,191 5,908 7,682 1,667
------------------------------------------------------------------------
Total expenses before
reimbursement...................... 5,979,078 3,427,915 1,269,714 3,910,613 465,054
Expenses reimbursed by the investment
adviser............................ -- -- -- -- --
------------------------------------------------------------------------
Net investment income.................... 2,768,561 1,816,438 973,452 3,649,794 2,053,619
------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on
investments#......................... 131,778,070 30,122,418 1,388,681 3,338,090 (1,186,055)
Net realized gain on futures and
options contracts.................... 210,720 -- -- 379,087 --
Net realized foreign exchange gain
(loss) on other assets and
liabilities.......................... -- 2,829,578 (181,644) 2,639,780 --
Change in unrealized appreciation/
depreciation on investments.......... 161,624,460 17,895,089 2,363,587 41,649,770 (8,547,580)
Change in unrealized foreign exchange
gain/ loss on other assets and
liabilities.......................... -- (1,905,362) (956,662) (947,316) --
Change in unrealized appreciation/
depreciation on futures and option
contracts............................ 765,000 -- -- (309,741) --
------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments and foreign
currencies............................. 294,378,250 48,941,723 2,613,962 46,749,670 (9,733,635)
------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.............. $297,146,811 $50,758,161 $3,587,414 $50,399,464 $(7,680,016)
========================================================================
---------------
* Net of foreign withholding taxes on
interest and dividends of............. $ 88,239 $ 441,188 $ 207,481 $ 721,055 $ 1,053
========================================================================
# Net of foreign withholding taxes on
capital gains of....................... $ -- $ -- $ -- $ -- $ --
========================================================================
<CAPTION>
AGGRESSIVE EMERGING
GROWTH MARKETS
----------------------------------------- --------------------------
<S> <C> <C>
INCOME:
Interest............................... $ 854,898 $ 134,006
Dividends.............................. 430,032 551,407
Total income*...................... 1,284,930 685,413
EXPENSES:
Management fees........................ 826,035 341,627
Custodian fees......................... 67,525 170,545
Auditing fees.......................... 23,945 29,005
Reports to investors................... 4,830 696
Legal fees............................. 1,644 1,383
Trustees' fees......................... 745 365
Amortization of organizational
expenses............................. -- 1,296
Other expenses......................... 3,203 3,918
--------------------------
Total expenses before
reimbursement...................... 927,927 548,835
Expenses reimbursed by the investment
adviser............................ -- (29,562)
--------------------------
Net investment income.................... 357,003 166,140
--------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on
investments#......................... 8,516,390 (8,916,796)
Net realized gain on futures and
options contracts.................... 121,523 --
Net realized foreign exchange gain
(loss) on other assets and
liabilities.......................... -- (209,004)
Change in unrealized appreciation/
depreciation on investments.......... (2,778,649) 1,943,004
Change in unrealized foreign exchange
gain/ loss on other assets and
liabilities.......................... -- (32,870)
Change in unrealized appreciation/
depreciation on futures and option
contracts............................ -- --
--------------------------
Net realized and unrealized gain (loss)
on investments and foreign
currencies............................. 5,859,264 (7,215,666)
--------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.............. $ 6,216,267 $ (7,049,526)
==========================
---------------
* Net of foreign withholding taxes on
interest and dividends of............. $ 810 $ 41,995
==========================
# Net of foreign withholding taxes on
capital gains of....................... $ -- $ 3,223
==========================
</TABLE>
See Notes to Financial Statements
---------------------
121
<PAGE> 123
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED NOVEMBER 30, 1998
<TABLE>
<CAPTION>
CASH GLOBAL CORPORATE HIGH-YIELD WORLDWIDE
MANAGEMENT BOND BOND BOND HIGH INCOME
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income........................ $ 10,066,106 $ 4,463,161 $ 6,659,366 $ 25,623,546 $ 11,865,052
Net realized gain (loss) on investments...... (6,901) 4,786,517 (60,443) (861,067) (30,080,600)
Net realized gain on futures and options
contracts................................... -- -- -- -- 17,693
Net realized foreign exchange gain (loss) on
other assets and liabilities................ -- (1,286,313) -- -- (33,125)
Change in unrealized
appreciation/depreciation on investments.... 25,431 3,845,490 (565,665) (30,181,712) (3,067,152)
Change in unrealized foreign exchange
gain/loss on other assets and liabilities... -- (146,183) -- -- 35,136
Change in unrealized
appreciation/depreciation on futures and
options contracts........................... -- -- -- -- (17,300)
---------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations................... 10,084,636 11,662,672 6,033,258 (5,419,233) (21,280,296)
---------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income........ (6,780,000) (6,255,000) (3,280,000) (13,985,000) (6,395,000)
Distribution from net realized gain on
investments............................... -- (1,735,000) -- (1,645,000) (7,650,000)
---------------------------------------------------------------------------
Total dividends and distributions to
shareholders................................ (6,780,000) (7,990,000) (3,280,000) (15,630,000) (14,045,000)
---------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.................... 1,289,143,368 64,783,124 105,861,336 270,371,285 88,242,225
Proceeds from shares issued for reinvestment
of dividends and distributions.............. 6,780,000 7,990,000 3,280,000 15,630,000 14,045,000
Cost of shares repurchased................... (1,231,707,367) (50,060,104) (30,604,926) (176,010,560) (70,896,700)
---------------------------------------------------------------------------
Net increase in net assets resulting from
capital share transactions.................. 64,216,001 22,713,020 78,536,410 109,990,725 31,390,525
---------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS...... 67,520,637 26,385,692 81,289,668 88,941,492 (3,934,771)
NET ASSETS:
Beginning of period.......................... 156,119,454 89,042,523 62,271,618 195,639,006 125,224,321
---------------------------------------------------------------------------
End of period................................ $ 223,640,091 $115,428,215 $143,561,286 $284,580,498 $121,289,550
===========================================================================
---------------
Undistributed net investment income.......... $ 10,054,177 $ 2,981,658 $ 6,650,194 $ 25,603,717 $ 11,808,237
===========================================================================
Shares issued and repurchased:
Sold......................................... 122,958,824 5,681,272 9,082,885 23,131,140 7,284,965
Issued in reinvestment of dividends and
distributions............................... 662,109 731,015 288,225 1,323,455 1,086,233
Repurchased.................................. (117,025,116) (4,342,695) (2,626,465) (15,085,908) (6,094,290)
---------------------------------------------------------------------------
Net increase................................. 6,595,817 2,069,592 6,744,645 9,368,687 2,276,908
===========================================================================
<CAPTION>
BALANCED/
PHOENIX
SUNAMERICA INVESTMENT ASSET
BALANCED COUNSEL ALLOCATION
--------------------------------------------- --------------------------------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income........................ $ 1,755,436 $ 2,762,869 $ 20,088,057
Net realized gain (loss) on investments...... 3,122,205 1,095,104 17,614,687
Net realized gain on futures and options
contracts................................... -- -- 4,861,214
Net realized foreign exchange gain (loss) on
other assets and liabilities................ -- -- 56,315
Change in unrealized
appreciation/depreciation on investments.... 10,080,246 10,235,149 (38,559,922)
Change in unrealized foreign exchange
gain/loss on other assets and liabilities... -- -- (537)
Change in unrealized
appreciation/depreciation on futures and
options contracts........................... -- -- 9,164,216
--------------------------------------------
Net increase (decrease) in net assets
resulting from operations................... 14,957,887 14,093,122 13,224,030
--------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income........ (470,000) (2,165,000) (12,565,000)
Distribution from net realized gain on
investments............................... (1,630,000) (9,655,000) (58,650,000)
--------------------------------------------
Total dividends and distributions to
shareholders................................ (2,100,000) (11,820,000) (71,215,000)
--------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.................... 113,589,466 40,224,778 289,252,676
Proceeds from shares issued for reinvestment
of dividends and distributions.............. 2,100,000 11,820,000 71,215,000
Cost of shares repurchased................... (23,926,902) (18,599,196) (116,016,831)
--------------------------------------------
Net increase in net assets resulting from
capital share transactions.................. 91,762,564 33,445,582 244,450,845
--------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS...... 104,620,451 35,718,704 186,459,875
NET ASSETS:
Beginning of period.......................... 44,621,156 95,721,036 526,585,395
--------------------------------------------
End of period................................ $149,241,607 $131,439,740 $ 713,045,270
============================================
---------------
Undistributed net investment income.......... $ 1,745,210 $ 2,758,518 $ 18,708,081
============================================
Shares issued and repurchased:
Sold......................................... 7,767,253 2,754,398 18,818,398
Issued in reinvestment of dividends and
distributions............................... 144,429 826,573 4,576,800
Repurchased.................................. (1,671,552) (1,285,192) (7,735,606)
--------------------------------------------
Net increase................................. 6,240,130 2,295,779 15,659,592
============================================
</TABLE>
See Notes to Financial Statements
- ---------------------
122
<PAGE> 124
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (continued)
FOR THE YEAR ENDED NOVEMBER 30, 1998
<TABLE>
<CAPTION>
GROWTH- FEDERATED VENTURE "DOGS" OF
UTILITY INCOME VALUE VALUE WALL STREET#
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income............................ $ 1,341,987 $ 6,306,909 $ 1,149,112 $ 12,963,152 $ 431,263
Net realized gain on investments................. 2,895,401 42,172,573 7,493,632 56,164,428 721
Net realized gain on futures and options
contracts....................................... -- 1,162,383 -- -- --
Net realized foreign exchange gain (loss) on
other assets and liabilities.................... (8,436) -- 29 127 --
Change in unrealized appreciation/depreciation on
investments..................................... 1,997,996 98,775,893 7,034,153 77,804,105 1,527,725
Change in unrealized foreign exchange gain/loss
on other assets and liabilities................. -- 141 -- (187) --
Change in unrealized appreciation/depreciation on
futures and options contracts................... -- 5,540,263 -- -- --
----------------------------------------------------------------------------
Net increase in net assets resulting from
operations...................................... 6,226,948 153,958,162 15,676,926 146,931,625 1,959,709
----------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income............ (410,000) (4,145,000) (330,000) (7,660,000) --
Distribution from net realized gain on
investments................................... (875,000) (32,070,000) (1,790,000) (41,665,000) --
----------------------------------------------------------------------------
Total dividends and distributions to
shareholders.................................... (1,285,000) (36,215,000) (2,120,000) (49,325,000) --
----------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold........................ 63,061,254 450,896,249 107,751,599 766,037,879 79,305,565
Proceeds from shares issued for reinvestment of
dividends and distributions..................... 1,285,000 36,215,000 2,120,000 49,325,000 --
Cost of shares repurchased....................... (25,605,621) (207,326,780) (36,552,630) (327,611,955) (15,982,093)
----------------------------------------------------------------------------
Net increase in net assets resulting from capital
share transactions.............................. 38,740,633 279,784,469 73,318,969 487,750,924 63,323,472
----------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS..................... 43,682,581 397,527,631 86,875,895 585,357,549 65,283,181
NET ASSETS:
Beginning of period.............................. 24,366,127 622,062,496 59,023,944 1,140,053,287 --
----------------------------------------------------------------------------
End of period.................................... $ 68,048,708 $1,019,590,127 $145,899,839 $1,725,410,836 $ 65,283,181
============================================================================
---------------
Undistributed net investment income.............. $ 1,327,226 $ 6,292,994 $ 1,141,295 $ 12,945,662 $ 431,867
============================================================================
Shares issued and repurchased:
Sold............................................. 4,592,714 19,956,198 7,117,294 34,411,379 8,307,445
Issued in reinvestment of dividends and
distributions................................... 93,386 1,571,832 136,072 2,146,431 --
Repurchased...................................... (1,867,728) (9,337,805) (2,415,702) (14,958,273) (1,651,822)
----------------------------------------------------------------------------
Net increase..................................... 2,818,372 12,190,225 4,837,664 21,599,537 6,655,623
============================================================================
---------------
# Commenced operations April 1, 1998
<CAPTION>
GROWTH/
PHOENIX
PUTNAM INVESTMENT
GROWTH COUNSEL
------------------------------------------------- -----------------------------
<S> <C> <C>
OPERATIONS:
Net investment income............................ $ 282,903 $ 397,828
Net realized gain on investments................. 10,488,436 11,774,676
Net realized gain on futures and options
contracts....................................... -- --
Net realized foreign exchange gain (loss) on
other assets and liabilities.................... -- --
Change in unrealized appreciation/depreciation on
investments..................................... 49,263,300 25,041,204
Change in unrealized foreign exchange gain/loss
on other assets and liabilities................. -- --
Change in unrealized appreciation/depreciation on
futures and options contracts................... -- --
-----------------------------
Net increase in net assets resulting from
operations...................................... 60,034,639 37,213,708
-----------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income............ (340,000) (1,540,000)
Distribution from net realized gain on
investments................................... (43,740,000) (37,090,000)
-----------------------------
Total dividends and distributions to
shareholders.................................... (44,080,000) (38,630,000)
-----------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold........................ 207,347,790 35,503,466
Proceeds from shares issued for reinvestment of
dividends and distributions..................... 44,080,000 38,630,000
Cost of shares repurchased....................... (103,245,428) (52,914,520)
-----------------------------
Net increase in net assets resulting from capital
share transactions.............................. 148,182,362 21,218,946
-----------------------------
TOTAL INCREASE IN NET ASSETS..................... 164,137,001 19,802,654
NET ASSETS:
Beginning of period.............................. 234,726,214 218,495,818
-----------------------------
End of period.................................... $ 398,863,215 $ 238,298,472
=============================
---------------
Undistributed net investment income.............. $ 267,117 $ 382,750
=============================
Shares issued and repurchased:
Sold............................................. 10,626,946 2,358,623
Issued in reinvestment of dividends and
distributions................................... 2,288,681 2,642,271
Repurchased...................................... (5,433,344) (3,487,108)
-----------------------------
Net increase..................................... 7,482,283 1,513,786
=============================
---------------
# Commenced operations April 1, 1998
</TABLE>
See Notes to Financial Statements
---------------------
123
<PAGE> 125
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (continued)
FOR THE YEAR ENDED NOVEMBER 30, 1998
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
ALLIANCE GLOBAL GROWTH & DIVERSIFIED
GROWTH EQUITIES INCOME EQUITIES
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income............................... $ 2,768,561 $ 1,816,438 $ 973,452 $ 3,649,794
Net realized gain (loss) on investments............. 131,778,070 30,122,418 1,388,681 3,338,090
Net realized gain on futures and options
contracts.......................................... 210,720 -- -- 379,087
Net realized foreign exchange gain (loss) on other
assets and liabilities............................. -- 2,829,578 (181,644) 2,639,780
Change in unrealized appreciation/depreciation on
investments........................................ 161,624,460 17,895,089 2,363,587 41,649,770
Change in unrealized foreign exchange gain/loss on
other assets and liabilities....................... -- (1,905,362) (956,662) (947,316)
Change in unrealized appreciation/depreciation on
futures and option contracts....................... 765,000 -- -- (309,741)
--------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations......................................... 297,146,811 50,758,161 3,587,414 50,399,464
--------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income............... (1,965,000) (4,270,000) (135,000) (9,350,000)
Distribution from net realized gain on
investments...................................... (81,965,000) (29,965,000) (290,000) (3,540,000)
--------------------------------------------------------------
Total dividends and distributions to shareholders... (83,930,000) (34,235,000) (425,000) (12,890,000)
--------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold........................... 783,731,693 148,182,205 150,784,055 363,964,393
Proceeds from shares issued for reinvestment of
dividends and distributions........................ 83,930,000 34,235,000 425,000 12,890,000
Cost of shares repurchased.......................... (389,271,751) (120,221,571) (68,871,564) (309,116,327)
--------------------------------------------------------------
Net increase in net assets resulting from capital
share transactions................................. 478,389,942 62,195,634 82,337,491 67,738,066
--------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS........................ 691,606,753 78,718,795 85,499,905 105,247,530
NET ASSETS:
Beginning of period................................. 704,533,267 341,639,194 42,843,962 248,926,712
--------------------------------------------------------------
End of period....................................... $1,396,140,020 $ 420,357,989 $128,343,867 $ 354,174,242
==============================================================
---------------
Undistributed net investment income (loss).......... $ 2,757,752 $ 4,369,876 $ 846,246 $ 5,133,814
==============================================================
Shares issued and repurchased:
Sold................................................ 30,725,595 8,865,607 13,322,605 29,306,696
Issued in reinvestment of dividends and
distributions...................................... 3,331,878 1,993,885 40,284 996,906
Repurchased......................................... (15,499,022) (7,373,444) (6,135,342) (24,727,847)
--------------------------------------------------------------
Net increase........................................ 18,558,451 3,486,048 7,227,547 5,575,755
==============================================================
<CAPTION>
REAL AGGRESSIVE EMERGING
ESTATE GROWTH MARKETS
---------------------------------------------------- ------------------------------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income............................... $ 2,053,619 $ 357,003 $ 166,140
Net realized gain (loss) on investments............. (1,186,055) 8,516,390 (8,916,796)
Net realized gain on futures and options
contracts.......................................... -- 121,523 --
Net realized foreign exchange gain (loss) on other
assets and liabilities............................. -- -- (209,004)
Change in unrealized appreciation/depreciation on
investments........................................ (8,547,580) (2,778,649) 1,943,004
Change in unrealized foreign exchange gain/loss on
other assets and liabilities....................... -- -- (32,870)
Change in unrealized appreciation/depreciation on
futures and option contracts....................... -- -- --
------------------------------------------
Net increase (decrease) in net assets resulting from
operations......................................... (7,680,016) 6,216,267 (7,049,526)
------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income............... (430,000) -- (205,000)
Distribution from net realized gain on
investments...................................... (25,000) -- --
------------------------------------------
Total dividends and distributions to shareholders... (455,000) -- (205,000)
------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold........................... 68,871,484 72,681,614 37,540,896
Proceeds from shares issued for reinvestment of
dividends and distributions........................ 455,000 -- 205,000
Cost of shares repurchased.......................... (31,654,685) (49,318,661) (18,785,185)
------------------------------------------
Net increase in net assets resulting from capital
share transactions................................. 37,671,799 23,362,953 18,960,711
------------------------------------------
TOTAL INCREASE IN NET ASSETS........................ 29,536,783 29,579,220 11,706,185
NET ASSETS:
Beginning of period................................. 29,564,858 103,603,464 19,979,093
------------------------------------------
End of period....................................... $ 59,101,641 $133,182,684 $ 31,685,278
==========================================
---------------
Undistributed net investment income (loss).......... $ 1,549,439 $ 352,153 $ (52,849)
==========================================
Shares issued and repurchased:
Sold................................................ 6,318,577 6,231,775 5,145,118
Issued in reinvestment of dividends and
distributions...................................... 39,089 -- 24,849
Repurchased......................................... (2,938,499) (4,227,691) (2,565,829)
------------------------------------------
Net increase........................................ 3,419,167 2,004,084 2,604,138
==========================================
</TABLE>
See Notes to Financial Statements
- ---------------------
124
<PAGE> 126
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED NOVEMBER 30, 1997
<TABLE>
<CAPTION>
CASH CORPORATE HIGH-YIELD WORLDWIDE
MANAGEMENT GLOBAL BOND BOND BOND HIGH INCOME
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income........................ $ 6,775,888 $ 3,618,389 $ 3,274,207 $ 13,979,814 $ 6,939,979
Net realized gain on investments............. 925 2,772,480 505,509 9,993,528 8,159,728
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 -- -- (120,494)
Change in unrealized
appreciation/depreciation on investments.... 2,661 (1,617,087) 718,565 (3,228,125) (5,021,473)
Change in unrealized foreign exchange
gain/loss on other assets and liabilities... -- 956,961 -- -- 4,477
-------------------------------------------------------------------------
Net increase in net assets resulting from
operations.................................. 6,779,474 6,477,546 4,498,281 20,745,217 9,962,217
-------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income........ (6,330,000) (4,705,000) (2,010,000) (8,890,000) (3,530,000)
Distributions from net realized gain on
investments............................... -- (275,000) -- -- (3,570,000)
-------------------------------------------------------------------------
Total dividends and distributions to
shareholders................................ (6,330,000) (4,980,000) (2,010,000) (8,890,000) (7,100,000)
-------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.................... 811,621,512 33,606,421 33,721,704 154,271,836 122,351,745
Proceeds from shares issued for reinvestment
of dividends and distributions.............. 6,330,000 4,980,000 2,010,000 8,890,000 7,100,000
Cost of shares repurchased................... (753,528,328) (19,262,861) (13,155,774) (92,607,140) (56,294,138)
-------------------------------------------------------------------------
Net increase in net assets resulting from
capital share transactions.................. 64,423,184 19,323,560 22,575,930 70,554,696 73,157,607
-------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS................. 64,872,658 20,821,106 25,064,211 82,409,913 76,019,824
NET ASSETS:
Beginning of period.......................... 91,246,796 68,221,417 37,207,407 113,229,093 49,204,497
-------------------------------------------------------------------------
End of period................................ $ 156,119,454 $ 89,042,523 $ 62,271,618 $195,639,006 $125,224,321
=========================================================================
---------------
Accumulated undistributed net investment
income...................................... $ 6,768,071 $ 5,020,328 $ 3,269,106 $ 13,972,776 $ 6,387,381
=========================================================================
Shares issued and repurchased:
Sold......................................... 76,477,014 3,008,825 3,044,110 13,781,218 9,588,842
Issued in reinvestment of dividends and
distributions............................... 611,004 466,729 190,883 837,889 606,319
Repurchased.................................. (71,025,735) (1,726,496) (1,194,160) (8,319,515) (4,394,496)
-------------------------------------------------------------------------
Net increase................................. 6,062,283 1,749,058 2,040,833 6,299,592 5,800,665
=========================================================================
<CAPTION>
BALANCED/
PHOENIX
SUNAMERICA INVESTMENT
BALANCED COUNSEL
--------------------------------------------- ---------------------------
<S> <C> <C>
OPERATIONS:
Net investment income........................ $ 465,338 $ 2,159,933
Net realized gain on investments............. 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................ -- --
Change in unrealized
appreciation/depreciation on investments.... 2,742,326 (1,288,697)
Change in unrealized foreign exchange
gain/loss on other assets and liabilities... -- --
---------------------------
Net increase in net assets resulting from
operations.................................. 4,832,465 10,572,744
---------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income........ (60,000) (1,265,000)
Distributions from net realized gain on
investments............................... (40,000) (2,245,000)
---------------------------
Total dividends and distributions to
shareholders................................ (100,000) (3,510,000)
---------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.................... 35,534,375 34,361,684
Proceeds from shares issued for reinvestment
of dividends and distributions.............. 100,000 3,510,000
Cost of shares repurchased................... (5,969,478) (19,233,950)
---------------------------
Net increase in net assets resulting from
capital share transactions.................. 29,664,897 18,637,734
---------------------------
TOTAL INCREASE IN NET ASSETS................. 34,397,362 25,700,478
NET ASSETS:
Beginning of period.......................... 10,223,794 70,020,558
---------------------------
End of period................................ $44,621,156 $ 95,721,036
===========================
---------------
Accumulated undistributed net investment
income...................................... $ 461,406 $ 2,153,212
===========================
Shares issued and repurchased:
Sold......................................... 2,875,391 2,475,607
Issued in reinvestment of dividends and
distributions............................... 8,651 269,378
Repurchased.................................. (485,362) (1,391,401)
---------------------------
Net increase................................. 2,398,680 1,353,584
===========================
</TABLE>
See Notes to Financial Statements
---------------------
125
<PAGE> 127
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (continued)
FOR THE YEAR ENDED NOVEMBER 30, 1997
<TABLE>
<CAPTION>
ASSET GROWTH- FEDERATED VENTURE
ALLOCATION UTILITY INCOME VALUE VALUE
<S> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income........................ $ 12,074,380 $ 422,847 $ 4,141,826 $ 327,018 $ 7,890,592
Net realized gain on investments............. 52,482,439 861,442 26,372,396 1,792,042 41,598,668
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) 1,065
Change in unrealized
appreciation/depreciation on investments.... 14,589,518 1,765,756 80,954,336 5,148,585 150,492,499
Change in unrealized foreign exchange
gain/loss on other assets and liabilities... 627 (148) -- -- 113
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 7,267,644 199,982,937
--------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income........ (9,550,000) (85,000) (2,770,000) (45,000) (3,390,000)
Distributions from net realized gain on
investments............................... (21,740,000) (21,000) (15,835,000) -- (9,745,000)
--------------------------------------------------------------------------
Total dividends and distributions to
shareholders................................ (31,290,000) (106,000) (18,605,000) (45,000) (13,135,000)
--------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.................... 198,007,930 19,909,225 281,329,957 53,713,595 607,026,485
Proceeds from shares issued for reinvestment
of dividends and distributions.............. 31,290,000 106,000 18,605,000 45,000 13,135,000
Cost of shares repurchased................... (67,166,417) (4,888,513) (101,729,611) (14,416,823) (183,369,506)
--------------------------------------------------------------------------
Net increase in net assets resulting from
capital share transactions.................. 162,131,513 15,126,712 198,205,346 39,341,772 436,791,979
--------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS................. 210,196,969 18,067,480 296,599,171 46,564,416 623,639,916
NET ASSETS:
Beginning of period.......................... 316,388,426 6,298,647 325,463,325 12,459,528 516,413,371
--------------------------------------------------------------------------
End of period................................ $526,585,395 $24,366,127 $ 622,062,496 $ 59,023,944 $1,140,053,287
==========================================================================
---------------
Accumulated undistributed net investment
income...................................... $ 11,185,024 $ 416,193 $ 4,138,634 $ 322,155 $ 7,883,673
==========================================================================
Shares issued and repurchased:
Sold......................................... 12,863,082 1,709,480 14,863,689 4,266,674 31,474,224
Issued in reinvestment of dividends and
distributions............................... 2,220,724 9,628 1,105,466 3,896 755,319
Repurchased.................................. (4,387,167) (417,938) (5,441,625) (1,147,636) (9,684,502)
--------------------------------------------------------------------------
Net increase................................. 10,696,639 1,301,170 10,527,530 3,122,934 22,545,041
==========================================================================
<CAPTION>
GROWTH/
PHOENIX
PUTNAM INVESTMENT
GROWTH COUNSEL
---------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income........................ $ 333,117 $ 1,535,922
Net realized gain on investments............. 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................ -- 22
Change in unrealized
appreciation/depreciation on investments.... 278,511 (2,566,236)
Change in unrealized foreign exchange
gain/loss on other assets and liabilities... -- --
Change in unrealized
appreciation/depreciation on futures
contracts, written options contracts and
currency swap agreements.................... -- --
----------------------------
Net increase in net assets resulting from
operations.................................. 44,309,427 36,115,707
----------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income........ -- (1,325,000)
Distributions from net realized gain on
investments............................... (5,465,000) (16,255,000)
----------------------------
Total dividends and distributions to
shareholders................................ (5,465,000) (17,580,000)
----------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.................... 84,068,227 36,491,255
Proceeds from shares issued for reinvestment
of dividends and distributions.............. 5,465,000 17,580,000
Cost of shares repurchased................... (53,724,485) (40,478,722)
----------------------------
Net increase in net assets resulting from
capital share transactions.................. 35,808,742 13,592,533
----------------------------
TOTAL INCREASE IN NET ASSETS................. 74,653,169 32,128,240
NET ASSETS:
Beginning of period.......................... 160,073,045 186,367,578
----------------------------
End of period................................ $234,726,214 $ 218,495,818
============================
---------------
Accumulated undistributed net investment
income...................................... $ 333,117 $ 1,533,739
============================
Shares issued and repurchased:
Sold......................................... 4,939,017 2,470,784
Issued in reinvestment of dividends and
distributions............................... 357,190 1,337,900
Repurchased.................................. (3,227,119) (2,775,949)
----------------------------
Net increase................................. 2,069,088 1,032,735
============================
</TABLE>
See Notes to Financial Statements
- ---------------------
126
<PAGE> 128
- ---------------------
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 REAL AGGRESSIVE
GROWTH EQUITIES INCOME+ EQUITIES ESTATE+ GROWTH
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)....... $ 1,960,357 $ 1,783,905 $ 76,139 $ 1,750,638 $ 239,201 $ (91,011)
Net realized gain (loss) on
investments....................... 81,524,855 26,101,178 219,703 (6,297,980) 22,378 (2,829,784)
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 1,322,345 11,818,657
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 1,583,924 8,897,862
-----------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment
income.......................... (1,200,000) (2,305,000) -- (5,175,000) -- (43,000)
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) -- (43,000)
-----------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold.......... 393,697,806 147,050,332 47,363,333 148,423,226 32,073,915 93,642,244
Proceeds from shares issued for
reinvestment of dividends and
distributions..................... 24,910,000 14,855,000 -- 6,890,000 -- 43,000
Cost of shares repurchased......... (189,842,593) (88,014,579) (4,538,803) (62,787,984) (4,092,981) (34,060,944)
-----------------------------------------------------------------------------------------
Net increase in net assets
resulting from capital share
transactions...................... 228,765,213 73,890,753 42,824,530 92,525,242 27,980,934 59,624,300
-----------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS....... 323,166,594 95,157,188 42,843,962 91,918,319 29,564,858 68,479,162
NET ASSETS:
Beginning of period................ 381,366,673 246,482,006 -- 157,008,393 -- 35,124,302
-----------------------------------------------------------------------------------------
End of period...................... $ 704,533,267 $341,639,194 $42,843,962 $248,926,712 $29,564,858 $103,603,464
=========================================================================================
---------------
Accumulated undistributed net
investment income................. $ 1,954,191 $ 1,870,601 $ 188,142 $ 7,621,922 $ 239,716 $ --
=========================================================================================
Shares issued and repurchased:
Sold............................... 18,866,011 9,425,673 4,546,734 12,963,775 2,929,568 8,405,394
Issued in reinvestment of dividends
and distributions................. 1,397,084 1,045,391 -- 646,315 -- 4,470
Repurchased........................ (9,403,821) (5,605,026) (431,073) (5,452,782) (364,503) (2,989,260)
-----------------------------------------------------------------------------------------
Net increase....................... 10,859,274 4,866,038 4,115,661 8,157,308 2,565,065 5,420,604
=========================================================================================
---------------
+ Commenced operations June 2, 1997
<CAPTION>
EMERGING
MARKETS+
-------------------------------- ------------
<S> <C>
OPERATIONS:
Net investment income (loss).... $ 105,714
Net realized gain (loss) on
investments.................... (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.................... (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..................... (4,408,807)
------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment
income....................... --
Distributions from net realized
gain on investments.......... --
------------
Total dividends and
distributions to shareholders.. --
------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold....... 26,523,263
Proceeds from shares issued for
reinvestment of dividends and
distributions.................. --
Cost of shares repurchased...... (2,135,363)
------------
Net increase in net assets
resulting from capital share
transactions................... 24,387,900
------------
TOTAL INCREASE IN NET ASSETS.... 19,979,093
NET ASSETS:
Beginning of period............. --
------------
End of period................... $ 19,979,093
============
---------------
Accumulated undistributed net
investment income.............. $ 170,105
============
Shares issued and repurchased:
Sold............................ 2,715,811
Issued in reinvestment of
dividends and distributions.... --
Repurchased..................... (227,806)
------------
Net increase.................... 2,488,005
============
---------------
+ Commenced operations June 2, 1
</TABLE>
See Notes to Financial Statements
---------------------
127
<PAGE> 129
- ---------------------
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 22 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 "DOGS" OF WALL STREET PORTFOLIO seeks total return (including capital
appreciation and current income) primarily through the annual selection of
thirty high dividend yielding common stocks from the Dow Jones Industrial
Average and the Standard & Poor's 400 Industrials.
The PUTNAM GROWTH, 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.
- ---------------------
128
<PAGE> 130
The GLOBAL EQUITIES PORTFOLIO seeks long-term growth of capital through
investment primarily in common stocks or securities of U.S. and foreign issuers
with common stock characteristics which demonstrate the potential for
appreciation and through transactions in foreign currencies.
The INTERNATIONAL 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, 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,
exchange rate 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.
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 gains and losses on other assets and liabilities and
change in unrealized foreign exchange gains 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.
SECURITIES TRANSACTIONS, INVESTMENT INCOME, EXPENSES, DIVIDENDS AND
DISTRIBUTIONS TO SHAREHOLDERS: 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
---------------------
129
<PAGE> 131
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.
For the year ended November 30, 1998, 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>
----------------------------------------------------
<CAPTION>
<S> <C> <C> <C>
Global Bond............................................. $ (246,831) $ 246,831 $ --
Corporate Bond.......................................... 1,722 (1,722) --
High-Yield Bond......................................... (7,605) 7,605 --
Worldwide High Income................................... (49,196) 49,196 --
SunAmerica Balanced..................................... (1,632) 1,632 --
Balanced/Phoenix Investment Counsel..................... 7,437 (7,437) --
Utility................................................. (20,954) 20,954 --
Growth-Income........................................... (7,549) 7,549 --
Federated Value......................................... 28 (28) --
Venture Value........................................... (241,163) 100,010 141,153
"Dogs" of Wall Street................................... 604 -- (604)
Putnam Growth........................................... (8,903) 8,903 --
Growth/Phoenix Investment Counsel....................... (8,817) 8,817 --
Global Equities......................................... 4,952,837 (4,911,621) (41,216)
International Growth and Income......................... (180,348) 181,644 (1,296)
International Diversified Equities...................... 3,212,098 (3,380,998) 168,900
Real Estate............................................. (313,896) 90,771 223,125
Aggressive Growth....................................... (4,850) 14,173 (9,323)
Emerging Markets........................................ (184,094) 203,683 (19,589)
</TABLE>
ORGANIZATIONAL EXPENSES: During the years ended November 30, 1997 and 1998,
$19,122 and $4,717, respectively, were incurred as part of the organization and
registration of additional Portfolios. 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.
3. OPERATING POLICIES:
REPURCHASE AGREEMENTS: The Trust's custodian takes possession of the
collateral pledged for investments in repurchase agreements ("repo" or
collectively "repos"). 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.
At November 30, 1998, the Aggressive Growth, SunAmerica Balanced and "Dogs" of
Wall Street Portfolios had a 5.3%, 7.7%, and 0.9%, respectively, undivided
interest, representing $6,593,000, $9,599,000 and $1,147,000, respectively, in
principal amount, in a joint repo with State Street Bank & Trust Co., which is
dated November 30, 1998, bears interest at the rate of 5.15% per annum, has a
principal amount of $125,000,000 and a repurchase price of $125,017,882, matures
on December 1, 1998, and is collateralized by $4,750,000 of U.S. Treasury Bonds
(bearing interest at the rate of 6.63% per annum and maturing June 30, 2001),
$39,230,000 of U.S. Treasury Bonds (bearing interest at the rate of 5.50% per
annum and maturing March 31, 2003), $39,200,000 of U.S. Treasury Bonds (bearing
interest at the rate of 6.75% per annum and maturing October 31, 2002),
- ---------------------
130
<PAGE> 132
$38,960,000 of U.S. Treasury Bonds (bearing interest at the rate of 7.13% per
annum and maturing February 29, 2000), which together have an approximate value
of $127,509,529.
At November 30, 1998, the Aggressive Growth and High-Yield Bond portfolios had
a 29.8% and 43.3%, respectively, undivided interest, representing $11,053,000
and $16,059,000, respectively, in principal amount, in a joint repo with Chase
Manhattan Corp., which is dated November 30, 1998, bears interest at the rate of
5.10% per annum, has a principal amount of $37,112,000 and a repurchase price of
$37,117,258, matures on December 1, 1998, and is collateralized by a $22,205,000
U.S. Treasury Bond (bearing interest at the rate of 11.25% per annum and
maturing February 15, 2015) with an approximate value of $37,859,525.
FORWARD FOREIGN CURRENCY CONTRACTS: Certain portfolios may enter into forward
foreign currency contracts ("forward contracts") to attempt to protect
securities and related receivables and payables against changes in future
foreign exchange rates or to enhance return. A forward contract is an agreement
between two parties to buy or sell currency at a set price on a future date. The
market value of the contract will fluctuate with changes in currency exchange
rates. The contract is marked-to-market daily using the forward rate and the
change in market value is recorded by the Portfolio as unrealized gain or loss.
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.
At November 30, 1998 the International Diversified Equities Portfolio had
$2,866,536 and $325,306 in cash and foreign cash, respectively, segregated for
the open futures contracts.
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.
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, 1998, were as follows:
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE
UNREALIZED UNREALIZED GAIN/(LOSS) COST OF CAPITAL LOSS CAPITAL LOSS
GAIN LOSS NET INVESTMENTS CARRYOVER*+ UTILIZED
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Cash Management**..................... $ 87,656 $ 65,981 $ 21,675 $ 220,050,946 $ 2,503 $ --
Global Bond........................... 4,572,004 347,286 4,224,718 107,740,193 -- --
Corporate Bond**...................... 3,921,161 2,609,142 1,312,019 139,721,082 218,318 56,644
High-Yield Bond**..................... 3,564,990 32,397,465 (28,832,475) 308,201,109 467,629 --
Worldwide High Income**............... 3,029,602 8,778,252 (5,748,650) 124,761,299 27,857,764 --
SunAmerica Balanced................... 14,787,068 1,390,864 13,396,204 134,305,439 -- --
</TABLE>
---------------------
131
<PAGE> 133
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE
UNREALIZED UNREALIZED GAIN/(LOSS) COST OF CAPITAL LOSS CAPITAL LOSS
GAIN LOSS NET INVESTMENTS CARRYOVER*+ UTILIZED
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balanced/Phoenix Investment Counsel... $ 16,723,188 $ 1,991,903 $ 14,731,285 $ 115,951,172 $ -- $ --
Asset Allocation...................... 32,361,798 20,328,058 12,033,740 720,843,055 -- --
Utility***............................ 5,617,069 1,655,483 3,961,586 64,818,469 -- --
Growth-Income......................... 267,934,779 21,132,449 246,802,330 772,208,087 -- --
Federated Value**..................... 18,529,218 5,286,382 13,242,836 134,436,055 -- --
Venture Value......................... 351,135,065 31,845,105 319,289,960 1,407,722,647 -- --
"Dogs" of Wall Street................. 3,315,040 1,787,315 1,527,725 62,928,639 -- --
Putnam Growth**....................... 95,937,598 1,203,553 94,734,045 303,564,211 -- --
Growth/Phoenix Investment Counsel..... 52,443,941 3,013,879 49,430,062 190,370,055 -- --
Alliance Growth....................... 292,002,364 30,141,066 261,861,298 1,149,321,893 -- --
Global Equities....................... 68,139,712 14,610,978 53,528,734 360,445,793 -- --
International Growth and
Income**/***. ...................... 7,992,536 7,076,621 915,915 128,745,694 -- --
International Diversified Equities.... 58,357,882 11,915,849 46,442,033 301,864,285 4,041,309 --
Real Estate........................... 513,420 7,520,146 (7,006,726) 66,471,532 1,091,994 --
Aggressive Growth..................... 16,517,995 6,114,121 10,403,874 122,018,107 -- 2,868,338
Emerging Markets**/***................ 2,885,489 5,140,873 (2,255,384) 34,720,745 8,943,573 --
</TABLE>
* Expires 2004-2006
** Post 10/31/98 Capital Loss Deferrals: Cash Management $5,082; Corporate Bond
$117,989; High Yield Bond $191,207; Worldwide High Income $1,646,500;
Federated Value $7,342; Putnam Growth $799,368; International Growth and
Income $159,954 and Emerging Markets $407,469.
*** Post 10/31/98 Currency Loss Deferrals: Utility $7,453; International Growth
and Income $8,730 and Emerging Markets $3,731.
+ Net capital loss carryovers reported as of November 30, 1998, 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.
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, "Dogs" of Wall Street 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>
- ---------------------------------------------------------
<CAPTION>
<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
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------
MANAGEMENT
PORTFOLIO ASSETS FEES
<S> <C> <C>
SunAmerica Balanced- $0--$ 50 million 0.70%
Balanced/Phoenix > $ 50 million 0.65%
Investment Counsel- > $ 50 million 0.60%
Growth-Income- > $150 million 0.55%
Alliance Growth- > $300 million 0.50%
Growth/Phoenix > $500 million
Investment Counsel
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%
"Dogs" of Wall Street > $ 0 0.60%
Putnam Growth $0--$150 million 0.85%
> $150 million 0.80%
> $300 million 0.70%
</TABLE>
- ---------------------
132
<PAGE> 134
<TABLE>
<CAPTION>
MANAGEMENT
PORTFOLIO ASSETS FEES
<S> <C> <C>
- ---------------------------------------------------------
<CAPTION>
<S> <C> <C>
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%
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------
MANAGEMENT
PORTFOLIO ASSETS FEES
<S> <C> <C>
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 Dean Witter Investment 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.
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>
- ---------------------------------------------------------
<CAPTION>
<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%
</TABLE>
<TABLE>
<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:
"Dogs" of Wall Street Portfolio -- 0.85%, 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 maintain the foregoing expense
limitations.
---------------------
133
<PAGE> 135
At November 30, 1998, 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............................... $ 2,613 $ --
Utility Portfolio........................................... 41,753 --
"Dogs" of Wall Street Portfolio............................. -- 15,116
International Growth and Income Portfolio................... 52,507 --
Real Estate Portfolio....................................... 7,874 --
Emerging Markets Portfolio.................................. -- 85,176
</TABLE>
6. PURCHASES AND SALES OF SECURITIES: Information with respect to purchases and
sales of long-term securities for the fiscal year ended November 30, 1998, 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>
---------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Purchases of portfolio securities
(excluding U.S. government
securities)............................. $ -- $158,448,916 $64,250,644 $422,273,117 $225,677,636 $105,699,282
Sales of portfolio securities (excluding
U.S. government securities)............. -- 145,473,125 13,199,264 320,939,852 196,273,959 46,885,250
Purchases of U.S. government securities... -- 61,495,785 22,263,045 -- -- 63,094,702
Sales of U.S. government securities....... -- 54,338,126 1,007,422 -- -- 39,163,217
</TABLE>
<TABLE>
<CAPTION>
BALANCED/PHOENIX
INVESTMENT ASSET GROWTH- FEDERATED
COUNSEL ALLOCATION UTILITY INCOME VALUE
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
Purchases of portfolio securities
(excluding U.S. government
securities)............................. $110,866,188 $568,291,896 $66,441,000 $603,881,051 $122,861,244
Sales of portfolio securities (excluding
U.S. government securities)............. 85,955,012 555,850,199 29,866,786 377,503,849 50,620,510
Purchases of U.S. government securities... 24,626,128 476,444,760 2,272,449 -- --
Sales of U.S. government securities....... 26,805,721 353,221,524 -- 7,717,336 --
<CAPTION> VENTURE
VALUE
<S> <C>
------------
<S> <C>
Purchases of portfolio securities
(excluding U.S. government
securities)............................. $803,557,941
Sales of portfolio securities (excluding
U.S. government securities)............. 338,497,241
Purchases of U.S. government securities... 449,379
Sales of U.S. government securities....... --
</TABLE>
<TABLE>
<CAPTION>
GROWTH/PHOENIX
"DOGS" OF PUTNAM INVESTMENT ALLIANCE GLOBAL
WALL STREET GROWTH COUNSEL GROWTH EQUITIES
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
Purchases of portfolio securities
(excluding U.S. government
securities)............................. $61,790,788 $329,082,985 $227,773,071 $1,282,376,443 $366,256,543
Sales of portfolio securities (excluding
U.S. government securities)............. 9,870 227,315,644 251,537,682 911,286,983 345,118,560
Purchases of U.S. government securities... -- -- 5,229,281 24,436,810 --
Sales of U.S. government securities....... -- -- 1,065,916 5,815,297 --
</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).................. $113,582,485 $175,695,858 $48,448,940 $263,869,749 $44,458,973
Sales of portfolio securities (excluding U.S.
government securities)....................... 41,470,388 107,020,206 11,225,279 253,148,328 24,133,517
Purchases of U.S. government securities........ -- -- -- 4,461,188 --
Sales of U.S. government securities............ -- -- -- 6,883,188 --
</TABLE>
- ---------------------
134
<PAGE> 136
7. TRANSACTIONS WITH AFFILIATES: The following Portfolios incurred brokerage
commissions with an affiliated broker:
<TABLE>
<CAPTION>
SUNAMERICA GOLDMAN SHELBY DONALDSON, LUFKIN &
SECURITIES, INC. SACHS & CO. CULLOM DAVIS JENRETTE SECURITIES CORP.
---------------- ----------- ------------ -------------------------
<S> <C> <C> <C> <C>
Balanced/Phoenix Investment
Counsel Portfolio............ $ 95 $ -- $ -- $ --
Asset Allocation Portfolio..... -- 100,571 -- --
Growth-Income Portfolio........ 1,000
Venture Value Portfolio........ -- -- 9,576 --
Putnam Growth Portfolio........ 610 -- -- --
Growth/Phoenix Investment
Counsel Portfolio............ 360 -- -- --
Global Equities Portfolio...... -- -- -- 2,030
Real Estate Portfolio.......... -- -- 222 --
</TABLE>
8. COMMITMENTS AND CONTINGENCIES: The High-Yield Bond, SunAmerica Balanced,
Growth-Income, Venture Value, "Dogs" of Wall Street, Alliance Growth, Global
Equities and Aggressive Growth Portfolios have 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. Any interest paid
during the year is shown as interest expense on the Statement of Operations.
9. SUBSEQUENT EVENTS: Effective December 14, 1998, the Trust issued three new
portfolios, Equity Income Portfolio, Equity Index Portfolio, and Small Company
Value Portfolio, each of which represents a separate managed portfolio of
securities with its own investment objective.
On January 1, 1999, SunAmerica Inc., pursuant to the terms of an agreement
entered into with American International Group, Inc. ("AIG"), merged with and
into AIG, and consequently, SunAmerica Asset Management Corp. ("SAAMCo"), which
acts as investment adviser of SunAmerica Series Trust (the "Trust"), became an
indirect wholly owned subsidiary of AIG. In connection therewith, on December
30, 1998, shareholders approved a new investment advisory and management
agreement with SAAMCo to take effect on January 1, 1999. The new agreement has
no effect on the fees or expenses payable by the Trust or its shareholders.
---------------------
135
<PAGE> 137
- ---------------------
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS*
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET TOTAL
ASSET NET NET REALIZED FROM
VALUE INVEST- & UNREALIZED INVEST-
PERIOD BEGINNING MENT GAIN (LOSS) ON MENT
ENDED OF PERIOD INCOME** INVESTMENTS OPERATIONS
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cash Management Portfolio
11/30/94 $10.20 $0.38 $(0.02) $ 0.36
11/30/95 10.47 0.56 0.01 0.57
11/30/96 10.70 0.53 (0.02) 0.51
11/30/97 10.76 0.53 0.01 0.54
11/30/98 10.74 0.54 (0.02) 0.52
Global Bond Portfolio
11/30/94 10.30 0.53 (0.86) (0.33)
11/30/95 9.83 0.60 0.97 1.57
11/30/96 11.02 0.59 0.54 1.13
11/30/97 11.40 0.52 0.38 0.90
11/30/98 11.51 0.49 0.78 1.27
Corporate Bond Portfolio
11/30/94 10.19 0.52 (0.87) (0.35)
11/30/95 9.75 0.60 1.00 1.60
11/30/96 10.82 0.65 0.03 0.68
11/30/97 11.09 0.77 0.21 0.98
11/30/98 11.54 0.77 (0.02) 0.75
High-Yield Bond Portfolio
11/30/94 11.12 1.20 (1.65) (0.45)
11/30/95 10.32 1.11 0.12 1.23
11/30/96 10.53 0.98 0.48 1.46
11/30/97 11.04 1.04 0.48 1.52
11/30/98 11.82 1.14 (1.24) (0.10)
Worldwide High Income Portfolio
10/28/94-
11/30/94 10.00 0.04 (0.09) (0.05)
11/30/95 9.95 1.10 0.47 1.57
11/30/96 11.42 1.25 1.60 2.85
11/30/97 13.35 0.98 0.68 1.66
11/30/98 13.20 1.07 (2.61) (1.54)
SunAmerica Balanced Portfolio
6/3/96-
11/30/96 10.00 0.10 1.03 1.13
11/30/97 11.13 0.23 2.15 2.38
11/30/98 13.45 0.30 2.33 2.63
Balanced/Phoenix Investment Counsel Portfolio
10/28/94-
11/30/94 10.00 0.04 (0.08) (0.04)
11/30/95 9.96 0.34 2.23 2.57
11/30/96 12.48 0.34 1.31 1.65
11/30/97 13.63 0.37 1.39 1.76
11/30/98 14.75 0.36 1.56 1.92
<CAPTION>
DIVIDENDS DIVIDENDS NET NET
DECLARED FROM FROM NET ASSET ASSETS
NET REALIZED VALUE END OF
PERIOD INVESTMENT GAIN ON END OF TOTAL PERIOD
ENDED INCOME INVESTMENTS PERIOD RETURN*** (000'S)
- -------------------------------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Cash Management Portfolio
11/30/94 $ (0.09) $ -- $10.47 3.51% $ 89,098
11/30/95 (0.34) -- 10.70 5.59 90,731
11/30/96 (0.45) -- 10.76 4.92 91,247
11/30/97 (0.56) -- 10.74 5.22 156,119
11/30/98 (0.68) -- 10.58 5.05 223,640
Global Bond Portfolio
11/30/94 (0.09) (0.05) 9.83 (3.18) 44,543
11/30/95 (0.38) -- 11.02 16.40 59,759
11/30/96 (0.75) -- 11.40 10.94 68,221
11/30/97 (0.75) (0.04) 11.51 8.43 89,043
11/30/98 (0.79) (0.22) 11.77 11.75 115,428
Corporate Bond Portfolio
11/30/94 (0.05) (0.04) 9.75 (3.41) 15,869
11/30/95 (0.53) -- 10.82 17.01 29,475
11/30/96 (0.41) -- 11.09 6.51 37,207
11/30/97 (0.53) -- 11.54 9.26 62,272
11/30/98 (0.46) -- 11.83 6.61 143,561
High-Yield Bond Portfolio
11/30/94 (0.29) (0.06) 10.32 (4.26) 55,803
11/30/95 (1.02) -- 10.53 12.64 82,174
11/30/96 (0.95) -- 11.04 14.86 113,229
11/30/97 (0.74) -- 11.82 14.53 195,639
11/30/98 (0.66) (0.08) 10.98 (1.26) 284,580
Worldwide High Income Portfolio
10/28/94-
11/30/94 -- -- 9.95 (0.50) 10.478
11/30/95 (0.10) -- 11.42 16.02 21,515
11/30/96 (0.87) (0.05) 13.35 26.87 49,204
11/30/97 (0.90) (0.91) 13.20 14.17 125,224
11/30/98 (0.61) (0.74) 10.31 (13.74) 121,290
SunAmerica Balanced Portfolio
6/3/96-
11/30/96 -- -- 11.13 11.30 10,224
11/30/97 (0.04) (0.02) 13.45 21.48 44,621
11/30/98 (0.11) (0.36) 15.61 19.81 149,242
Balanced/Phoenix Investment Counsel Portfolio
10/28/94-
11/30/94 -- -- 9.96 (0.40) 1,516
11/30/95 (0.05) -- 12.48 25.89 32,429
11/30/96 (0.19) (0.31) 13.63 13.75 70,021
11/30/97 (0.23) (0.41) 14.75 13.52 95,721
11/30/98 (0.31) (1.40) 14.96 13.54 131,440
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES TO INCOME TO
PERIOD AVERAGE NET AVERAGE NET PORTFOLIO
ENDED ASSETS ASSETS TURNOVER
- -------------------------------------------------- ------------------------------------------
<S> <C> <C> <C>
Cash Management Portfolio
11/30/94 0.70%++ 3.73%++ --%
11/30/95 0.67 5.32 --
11/30/96 0.62 4.90 --
11/30/97 0.63 5.06 --
11/30/98 0.58 4.97 --
Global Bond Portfolio
11/30/94 1.06 5.29 347
11/30/95 0.95 5.89 339
11/30/96 0.89 5.44 223
11/30/97 0.90 4.70 360
11/30/98 0.85 4.27 210
Corporate Bond Portfolio
11/30/94 0.94++ 5.21++ 419
11/30/95 0.96++ 5.93++ 412
11/30/96 0.97 6.11 338
11/30/97 0.91 6.99 49
11/30/98 0.77 6.61 15
High-Yield Bond Portfolio
11/30/94 0.92++ 11.07++ 225
11/30/95 0.80 10.80 174
11/30/96 0.77 9.41 107
11/30/97 0.75 9.26 243
11/30/98 0.69 9.75 128
Worldwide High Income Portfolio
10/28/94-
11/30/94 1.60+++ 4.48+++ 2
11/30/95 1.30 10.46 176
11/30/96 1.18 10.45 177
11/30/97 1.10 7.58 146
11/30/98 1.08 8.90 158
SunAmerica Balanced Portfolio
6/3/96-
11/30/96 1.00+++ 1.92+++ 40
11/30/97 1.00 1.82 143
11/30/98 0.78 2.10 111
Balanced/Phoenix Investment Counsel Portfolio
10/28/94-
11/30/94 1.00+++ 4.25+++ 10
11/30/95 0.98++ 3.08++ 153
11/30/96 0.84 2.74 194
11/30/97 0.82 2.63 271
11/30/98 0.77 2.43 106
</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 below stated periods, 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
------------------------------------- ----------------------------------------
1994 1995 1996 1997 1998 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
------------------------------------- ----------------------------------------
Cash Management Portfolio................... 0.78% 0.67% 0.62% 0.63% 0.58% 3.65% 5.32% 4.90% 5.06% 4.97%
Global Bond Portfolio....................... 1.06 0.95 0.89 0.90 0.85 5.29 5.89 5.44 4.70 4.27
Corporate Bond Portfolio.................... 1.09 0.97 0.97 0.91 0.77 5.06 5.92 6.11 6.99 6.61
High-Yield Bond Portfolio................... 0.93 0.80 0.77 0.75 0.69 11.06 10.80 9.41 9.26 9.75
Worldwide High Income Portfolio............. 2.26 1.30 1.18 1.10 1.08 3.82 10.46 10.45 7.58 8.90
SunAmerica Balanced Portfolio............... -- -- 1.43 1.00 0.78 -- -- 1.49 1.82 2.10
Balanced/Phoenix Investment Counsel
Portfolio................................. 6.82 1.11 0.84 0.82 0.77 (1.57) 2.95 2.74 2.63 2.43
</TABLE>
See Notes to Financial Statements
- ---------------------
136
<PAGE> 138
- ---------------------
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS* -- (CONTINUED)
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET TOTAL
ASSET NET NET REALIZED FROM
VALUE INVEST- & UNREALIZED INVEST-
PERIOD BEGINNING MENT GAIN (LOSS) ON MENT
ENDED OF PERIOD INCOME** INVESTMENTS OPERATIONS
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Asset Allocation Portfolio
11/30/94 $10.36 $0.29 $(0.25) $ 0.04
11/30/95 10.32 0.42 2.24 2.66
11/30/96 12.74 0.48 2.00 2.48
11/30/97 14.52 0.44 2.55 2.99
11/30/98 16.21 0.48 0.08 0.56
Utility Portfolio
6/3/96-
11/30/96 10.00 0.24 0.51 0.75
11/30/97 10.75 0.36 1.91 2.27
11/30/98 12.91 0.42 1.62 2.04
Growth-Income Portfolio
11/30/94 10.61 0.13 (0.36) (0.23)
11/30/95 10.33 0.17 3.31 3.48
11/30/96 13.71 0.18 3.48 3.66
11/30/97 16.82 0.17 4.69 4.86
11/30/98 20.82 0.17 4.33 4.50
Federated Value Portfolio
6/3/96-
11/30/96 10.00 0.07 1.01 1.08
11/30/97 11.08 0.13 2.72 2.85
11/30/98 13.90 0.17 2.35 2.52
Venture Value Portfolio
10/28/94-
11/30/94 10.00 0.03 (0.25) (0.22)
11/30/95 9.78 0.17 3.55 3.72
11/30/96 13.47 0.18 3.46 3.64
11/30/97 16.90 0.19 4.73 4.92
11/30/98 21.47 0.20 2.23 2.43
"Dogs" of Wall Street Portfolio
4/1/98-
11/30/98 10.00 0.11 (0.30) (0.19)
Putnam Growth Portfolio
11/30/94 10.04 0.03 (0.01) 0.02
11/30/95 10.05 (0.01) 3.09 3.08
11/30/96 13.10 -- 2.61 2.61
11/30/97 15.71 0.03 3.93 3.96
11/30/98 19.15 0.01 4.15 4.16
Growth/Phoenix Investment Counsel Portfolio
11/30/94 10.78 0.16 (0.87) (0.71)
11/30/95 10.01 0.12 3.14 3.26
11/30/96 13.14 0.11 2.16 2.27
11/30/97 14.39 0.11 2.48 2.59
11/30/98 15.62 0.02 2.61 2.63
<CAPTION>
DIVIDENDS DIVIDENDS NET NET
DECLARED FROM FROM NET ASSET ASSETS
NET REALIZED VALUE END OF
PERIOD INVESTMENT GAIN ON END OF TOTAL PERIOD
ENDED INCOME INVESTMENTS PERIOD RETURN*** (000'S)
- --------------------------------------------- --------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Asset Allocation Portfolio
11/30/94 $ (0.05) $(0.03) $10.32 0.30% $ 106,856
11/30/95 (0.20) (0.04) 12.74 26.10 199,836
11/30/96 (0.31) (0.39) 14.52 20.27 316,388
11/30/97 (0.40) (0.90) 16.21 21.97 526,585
11/30/98 (0.35) (1.61) 14.81 2.85 713,045
Utility Portfolio
6/3/96-
11/30/96 -- -- 10.75 7.50 6,299
11/30/97 (0.09) (0.02) 12.91 21.26 24,366
11/30/98 (0.16) (0.33) 14.46 15.98 68,049
Growth-Income Portfolio
11/30/94 (0.04) (0.01) 10.33 (2.20) 84,899
11/30/95 (0.10) -- 13.71 33.89 171,281
11/30/96 (0.12) (0.43) 16.82 27.41 325,463
11/30/97 (0.13) (0.73) 20.82 30.11 622,062
11/30/98 (0.13) (0.96) 24.23 21.91 1,019,590
Federated Value Portfolio
6/3/96-
11/30/96 -- -- 11.08 10.80 12,460
11/30/97 (0.03) -- 13.90 25.75 59,024
11/30/98 (0.06) (0.30) 16.06 18.22 145,900
Venture Value Portfolio
10/28/94-
11/30/94 -- -- 9.78 (2.20) 4,449
11/30/95 (0.03) -- 13.47 38.17 154,908
11/30/96 (0.09) (0.12) 16.90 27.44 516,413
11/30/97 (0.09) (0.26) 21.47 29.62 1,140,053
11/30/98 (0.12) (0.68) 23.10 11.36 1,725,411
"Dogs" of Wall Street Portfolio
4/1/98-
11/30/98 -- -- 9.81 (1.90) 65,283
Putnam Growth Portfolio
11/30/94 (0.01) -- 10.05 0.19 75,342
11/30/95 (0.03) -- 13.10 30.66 115,276
11/30/96 -- -- 15.71 19.92 160,073
11/30/97 -- (0.52) 19.15 26.01 234,726
11/30/98 (0.02) (3.08) 20.21 22.56 398,863
Growth/Phoenix Investment Counsel Portfolio
11/30/94 (0.06) -- 10.01 (6.64) 104,194
11/30/95 (0.13) -- 13.14 32.92 149,910
11/30/96 (0.11) (0.91) 14.39 18.40 186,368
11/30/97 (0.10) (1.26) 15.62 19.78 218,496
11/30/98 (0.12) (2.76) 15.37 17.82 238,298
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES TO INCOME TO
PERIOD AVERAGE NET AVERAGE NET PORTFOLIO
ENDED ASSETS ASSETS TURNOVER
- --------------------------------------------- --------------------------------------
<S> <C> <C> <C>
Asset Allocation Portfolio
11/30/94 0.94%++ 2.71%++ 152%
11/30/95 0.81 3.62 207
11/30/96 0.74 3.66 200
11/30/97 0.68 2.88 176
11/30/98 0.64 3.15 156
Utility Portfolio
6/3/96-
11/30/96 1.05+++ 4.41+++ 24
11/30/97 1.05++ 3.15++ 77
11/30/98 1.01 3.04 72
Growth-Income Portfolio
11/30/94 0.81++ 1.26++ 59
11/30/95 0.77 1.42 59
11/30/96 0.72 1.21 82
11/30/97 0.65 0.89 44
11/30/98 0.60 0.78 53
Federated Value Portfolio
6/3/96-
11/30/96 1.05+++ 1.26+++ 30
11/30/97 1.03 1.03 46
11/30/98 0.83 1.13 51
Venture Value Portfolio
10/28/94-
11/30/94 1.10+++ 3.93+++ --
11/30/95 1.00++ 1.43++ 18
11/30/96 0.85 1.21 22
11/30/97 0.79 0.98 22
11/30/98 0.75 0.89 25
"Dogs" of Wall Street Portfolio
4/1/98-
11/30/98 0.85+++ 2.04+++ 0
Putnam Growth Portfolio
11/30/94 0.96++ 0.31++ 54
11/30/95 0.93 (0.05) 52
11/30/96 0.90 (0.02) 63
11/30/97 0.91 0.18 125
11/30/98 0.86 0.09 75
Growth/Phoenix Investment Counsel Portfolio
11/30/94 0.81++ 1.52++ 211
11/30/95 0.76 1.01 229
11/30/96 0.74 0.82 164
11/30/97 0.73 0.77 217
11/30/98 0.70 0.17 105
</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 below stated periods, 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)
------------------------------------- -----------------------------------------
1994 1995 1996 1997 1998 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
------------------------------------- -----------------------------------------
Asset Allocation Portfolio................ 0.94% 0.81% 0.74% 0.68% 0.64% 2.71% 3.62% 3.66% 2.88% 3.15%
Utility Portfolio......................... -- -- 1.93 1.24 1.01 -- -- 3.53 2.96 3.04
Growth-Income Portfolio................... 0.89 0.77 0.72 0.65 0.60 1.18 1.42 1.21 0.89 0.78
Federated Value Portfolio................. -- -- 1.57 1.03 0.83 -- -- 0.74 1.03 1.13
Venture Value Portfolio................... 3.89 1.02 0.85 0.79 0.75 1.14 1.41 1.21 0.98 0.89
"Dogs" of Wall Street Portfolio........... -- -- -- -- 0.92 -- -- -- -- 1.97
Putnam Growth Portfolio................... 1.05 0.93 0.90 0.91 0.86 0.22 (0.05) (0.02) 0.18 0.09
Growth/Phoenix Investment Counsel
Portfolio................................ 0.87 0.76 0.74 0.73 0.70 1.46 1.01 0.82 0.77 0.17
</TABLE>
See Notes to Financial Statements
---------------------
137
<PAGE> 139
- ---------------------
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
ASSET INVEST- NET REALIZED FROM DECLARED FROM FROM NET
VALUE MENT & UNREALIZED INVEST- NET REALIZED
PERIOD BEGINNING INCOME GAIN (LOSS) ON MENT INVESTMENT GAIN ON
ENDED OF PERIOD (LOSS)** INVESTMENTS OPERATIONS INCOME INVESTMENTS
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Alliance Growth Portfolio
11/30/94 $10.92 $0.04 $(0.14) $(0.10) $ (0.01) $(0.17)
11/30/95 10.64 0.07 5.08 5.15 (0.03) (0.13)
11/30/96 15.63 0.08 4.07 4.15 (0.04) (1.01)
11/30/97 18.73 0.16 4.76 4.92 (0.05) (1.04)
11/30/98 22.56 0.07 7.77 7.84 (0.06) (2.30)
Global Equities Portfolio
11/30/94 10.99 0.05 0.71 0.76 (0.01) (0.07)
11/30/95 11.67 0.12 1.64 1.76 (0.08) (0.29)
11/30/96 13.06 0.14 2.19 2.33 (0.14) (0.33)
11/30/97 14.92 0.09 1.79 1.88 (0.13) (0.69)
11/30/98 15.98 0.07 2.40 2.47 (0.19) (1.36)
International Growth and Income Portfolio
6/2/97-
11/30/97 10.00 0.03 0.38 0.41 -- --
11/30/98 10.41 0.13 0.86 0.99 (0.03) (0.06)
International Diversified Equities Portfolio
10/28/94-11/30/94 10.00 0.01 (0.23) (0.22) -- --
11/30/95 9.78 0.07 0.38 0.45 (0.08) --
11/30/96 10.15 0.05 1.43 1.48 (0.26) --
11/30/97 11.37 0.09 0.28 0.37 (0.31) (0.10)
11/30/98 11.33 0.15 1.93 2.08 (0.40) (0.15)
Real Estate Portfolio
6/2/97-
11/30/97 10.00 0.16 1.37 1.53 -- --
11/30/98 11.53 0.45 (1.93) (1.48) (0.16) (0.01)
Aggressive Growth Portfolio
6/3/96-
11/30/96 10.00 0.02 0.34 0.36 -- --
11/30/97 10.36 0.01 1.40 1.41 (0.01) --
11/30/98 11.76 0.04 0.52 0.56 -- --
Emerging Markets Portfolio
6/2/97-
11/30/97 10.00 0.06 (2.03) (1.97) -- --
11/30/98 8.03 0.04 (1.78) (1.74) (0.07) --
<CAPTION>
NET NET RATIO OF NET
ASSET ASSETS RATIO OF INVESTMENT
VALUE END OF EXPENSES TO INCOME TO
END OF TOTAL PERIOD AVERAGE NET AVERAGE NET PORTFOLIO
PERIOD RETURN*** (000'S) ASSETS ASSETS TURNOVER
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Alliance Growth Portfolio
11/30/94 $10.64 (0.93)% $ 53,213 0.82%++ 0.37%++ 146%
11/30/95 15.63 48.91 167,870 0.79 0.51 138
11/30/96 18.73 28.05 381,367 0.71 0.51 121
11/30/97 22.56 27.80 704,533 0.65 0.37 110
11/30/98 28.04 35.92 1,396,140 0.58 0.27 90
Global Equities Portfolio
11/30/94 11.67 6.87 136,758 1.28 0.42 67
11/30/95 13.06 15.58 165,752 1.14 1.02 106
11/30/96 14.92 18.21 246,482 1.03 1.04 70
11/30/97 15.98 13.30 341,639 0.95 0.58 115
11/30/98 16.90 15.34 420,358 0.88 0.46 92
International Growth and Income Portfolio
6/2/97-
11/30/97 10.41 4.10 42,844 1.60+++ 0.61+++ 19
11/30/98 11.31 9.58 128,344 1.46 1.12 51
International Diversified Equities Portfolio
10/28/94-11/30/94 9.78 (2.20) 12,438 1.70+++ 1.60+++ --
11/30/95 10.15 4.63 48,961 1.70++ 0.76++ 52
11/30/96 11.37 14.85 157,008 1.59 0.47 53
11/30/97 11.33 3.52 248,927 1.35 0.82 56
11/30/98 12.86 18.33 354,174 1.26 1.18 40
Real Estate Portfolio
6/2/97-
11/30/97 11.53 15.30 29,565 1.25+++ 3.25+++ 7
11/30/98 9.88 (13.04) 59,102 0.95 4.21 26
Aggressive Growth Portfolio
6/3/96-
11/30/96 10.36 3.60 35,124 1.05+++ 0.46+++ 47
11/30/97 11.76 13.62 103,603 0.90 (0.13) 221
11/30/98 12.32 4.76 133,183 0.83 0.32 268
Emerging Markets Portfolio
6/2/97-
11/30/97 8.03 (19.70) 19,979 1.90+++ 1.33+++ 49
11/30/98 6.22 (21.86) 31,685 1.90++ 0.61++ 96
</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 below stated periods, 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)
------------------------------------- -----------------------------------------
1994 1995 1996 1997 1998 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
------------------------------------- -----------------------------------------
Alliance Growth Portfolio................. 0.96% 0.79% 0.71% 0.65% 0.58% 0.23% 0.51% 0.51% 0.37% 0.27%
Global Equities Portfolio................. 1.28 1.14 1.03 0.95 0.88 0.42 1.02 1.04 0.58 0.46
International Growth and Income
Portfolio................................ -- -- -- 2.02 1.46 -- -- -- 0.19 1.12
International Diversified Equities
Portfolio................................ 3.50 2.09 1.59 1.35 1.26 (0.20) 0.37 0.47 0.82 1.18
Real Estate Portfolio..................... -- -- -- 1.36 0.95 -- -- -- 3.14 4.21
Aggressive Growth Portfolio............... -- -- 1.09 0.90 0.83 -- -- 0.42 (0.13) 0.32
Emerging Markets Portfolio................ -- -- -- 2.60 2.01 -- -- -- 0.63 0.50
</TABLE>
See Notes to Financial Statements
- ---------------------
138
<PAGE> 140
- ---------------------
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, 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, Global Equities Portfolio, International Growth and Income
Portfolio, International Diversified Equities Portfolio, Real Estate Portfolio,
Aggressive Growth Portfolio, "Dogs" of Wall Street Portfolio and Emerging
Markets Portfolio (constituting the twenty-two portfolios of SunAmerica Series
Trust at November 30, 1998, hereafter referred to as the "Fund") at November 30,
1998, 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, 1998 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York
January 15, 1999
---------------------
139
<PAGE> 141
- ---------------------
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, 1998.
During the year ended November 30, 1998 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>
NET NET NET QUALIFYING % FOR THE
TOTAL INVESTMENT SHORT-TERM LONG-TERM 70% DIVIDENDS
DIVIDENDS INCOME CAPITAL GAINS CAPITAL GAINS RECEIVED DEDUCTION
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
Cash Management Portfolio......................... $0.68 $0.68 $ -- $ -- --%
Global Bond Portfolio............................. 1.01 0.79 0.18 0.04 --
Corporate Bond Portfolio.......................... 0.46 0.46 -- -- 1.67
High-Yield Bond Portfolio......................... 0.74 0.66 -- 0.08 --
Worldwide High Income Portfolio................... 1.35 0.61 0.68 0.06 --
SunAmerica Balanced Portfolio..................... 0.47 0.11 0.32 0.04 10.19
Balanced/Phoenix Investment Counsel Portfolio..... 1.71 0.31 1.00 0.40 4.59
Asset Allocation Portfolio........................ 1.96 0.35 0.57 1.04 11.70
Utility Portfolio................................. 0.49 0.16 0.23 0.10 42.16
Growth-Income Portfolio........................... 1.09 0.13 0.35 0.61 30.63
Federated Value Portfolio......................... 0.36 0.06 0.21 0.09 33.38
Venture Value Portfolio........................... 0.80 0.12 0.12 0.56 56.55
"Dogs" of Wall Street Portfolio................... -- -- -- -- --
Putnam Growth Portfolio........................... 3.10 0.02 0.45 2.63 22.73
Growth/Phoenix Investment Counsel Portfolio....... 2.88 0.12 1.33 1.43 8.13
Alliance Growth Portfolio......................... 2.36 0.06 1.36 0.94 9.76
Global Equities Portfolio......................... 1.55 0.19 0.49 0.87 9.13
International Growth and Income Portfolio......... 0.09 0.03 0.06 -- --
International Diversified Equities Portfolio...... 0.55 0.40 -- 0.15 --
Real Estate Portfolio............................. 0.17 0.16 0.01 -- --
Aggressive Growth Portfolio....................... -- -- -- -- --
Emerging Markets Portfolio........................ 0.07 0.07 -- -- --
</TABLE>
The International Growth and Income 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, 1998 were $196,935 and $706,852 respectively. The gross
foreign source income for information reporting is $1,760,241 and $5,318,868
respectively.
- ---------------------
140
<PAGE> 142
- ---------------------
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. Please note that
variable annuity minimum premiums vary by contract and may be
higher or lower than the $10,000 depicted. 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.
SUNAMERICA ASSET MANAGEMENT CORP.
Cash Management Portfolio
For the one-year period ended November 30, 1998, the Portfolio
maintained a 65-day average maturity, slightly longer than the
Donaghue average of approximately 55 days. The return for the year
was 5.05% versus the Lipper Analytical composite return of 4.84%.
At the close of 1998, the U.S. economy remained very strong, with
fourth quarter growth estimated at approximately 3.0 to 3.5% or
more. The outlook for 1999, however, is for growth to slow to a
below-trend rate around 1.5%. A slowdown in the economy, coupled
with numerous announcements of planned corporate layoffs, should
trigger unemployment to rise above 5.0%. The inflation rate should
remain subdued due to the low level of commodity and import
prices. Wage growth has already begun to slow and should continue
over the next year as the unemployment rate rises. The manager
predicts short-term rates will trend lower over the next quarter
and the yield on the 30-year Treasury bond could reach about 4.5%.
Given the expectation of a slowing U.S. economy, the manager
intends to maintain the Portfolio's average days to maturity at
approximately 65 days, reflecting its bullish outlook for lower
short-term interest rates. SunAmerica Asset Management will
continue to search for the best relative valued securities and
structure the Portfolio to be flexible for any changes in the
economic outlook.
Past performance is no guarantee of future results.
---------------------
141
<PAGE> 143
GOLDMAN SACHS ASSET MANAGEMENT INTERNATIONAL
[Global Bond Portfolio]
<TABLE>
<CAPTION>
J.P. Morgan Global
Global Bond Portfolio Gov't Bond Index(1)
<S> <C> <C>
7/1/93 10000 10000
10200 10296
11/30/93 10300 10324
10190 10413
5/31/94 9942 10270
9930 10463
11/30/94 9973 10746
10297 11086
5/31/95 10965 11802
11102 12007
11/30/95 11608 12548
11734 12630
5/31/96 11896 12772
12156 13069
11/30/96 12879 13809
13014 13961
5/31/97 13078 14127
13503 14590
11/30/97 13964 15094
14364 15559
5/31/98 14716 15934
15140 16519
11/30/98 15604 17021
</TABLE>
Global Bond Portfolio
Average Annual Total Returns as of 11/30/98
1-year 11.75%
5-year 8.66%
Since Inception (7/1/93) 8.56%
(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 11.75% during the one-year
period ended November 30, 1998, slightly underperforming the J.P.
Morgan Global Government Bond Index at 12.76%. The portfolio's
performance can largely be attributed to Goldman Sachs' focus on
high quality securities.
European markets generated strong results, with bond markets in
the U.K., Denmark, and Sweden contributing significantly to
overall portfolio performance. In the first half of the year,
markets in the United States and Canada were driven by a flight to
fixed income, given the aftermath of the Asian crisis. However,
U.S. Treasuries were adversely affected by a return in credit and
equity market confidence and, at year-end, performed relatively
poorly.
In Japan, the Portfolio began the year with an underweighted
position, given the poor outlook for the Japanese economy, and
moved to an overweighted stance towards mid-year in an effort to
take advantage of deterioration in Japanese economic activity. At
the close of the year, however, this position was reduced,
reflecting a preference for opportunities in Europe.
The portfolio's initial neutral position in Europe was shifted to
an overweighted position to take advantage of ongoing strength in
the European bond markets. Going forward, Goldman Sachs will
continue to maintain an overweighted position in Europe and a
neutral to underweighted position in Japan.
Past performance is no guarantee of future results.
- ---------------------
142
<PAGE> 144
FEDERATED INVESTORS
[Corporate Bond Portfolio]
<TABLE>
<CAPTION>
Lehman Lehman Lipper
Brothers Brothers Corporate BBB
Corporate Bond Aggregate Corporate Bond Rated Index
Portfolio Index (1) Index (2) (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 9906
10014 10075 10070 10070
11/30/94 9843 9896 9845 9866
10337 10404 10429 10324
5/31/95 10942 11024 11196 11064
11112 11215 11428 11261
11/30/95 11517 11643 11937 11740
11570 11677 11922 11729
5/31/96 11404 11507 11701 11526
11559 11673 11859 11669
11/30/96 12266 12347 12707 12445
12230 12303 12602 12396
5/31/97 12449 12468 12736 12521
12926 12849 13192 12959
11/30/97 13402 13287 13669 13385
13692 13582 13974 13676
5/31/98 13962 13829 14283 13922
14046 14204 14443 13982
11/30/98 14288 14541 14957 14346
</TABLE>
Corporate Bond Portfolio
Average Annual Total Returns as of 11/30/98
1-year 6.61%
5-year 6.99%
Since Inception (7/1/93) 6.82%
(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.
The Corporate Bond Portfolio returned 6.61% during the one-year
period ended November 30, 1998, underperforming the Lehman
Brothers Aggregate Index return of 9.44%, the Lehman Brothers
Corporate Bond Index return of 9.42%, and the Lipper Corporate BBB
Rated Index return of 7.18%. This past year has been a positive
one for most fixed income investors, particularly those in the
highest quality debt sectors. Interest rate levels declined
significantly over the period for all points along the U.S.
Treasury maturity spectrum. The two predominant reasons for this
were (1) slower economic growth and (2) dramatic
economic/financial marketplace volatility in non-U.S. markets.
Over the past year, corporate earnings have been considerably
below initial Wall Street analyst expectations. The concern over
the future growth potential of the U.S. economy, combined with
sustained low inflation, resulted in lowered U.S. Treasury yields.
In addition, the global financial marketplace became very
unstable. Most notably, problems emanating from Asia in the second
half of 1997 quickly spread to Russia and Latin America through
1998. The result was a worldwide "flight to quality" into U.S.
Treasury securities.
In terms of relative performance, the general rule over the past
year was that higher quality outperformed lower quality bonds, and
domestic outperformed international bonds. The star performers
were U.S. Treasuries, perceived to be the highest quality
investment worldwide. All other investment grade sectors
(corporate, mortgage, asset-backed) produced positive rates of
return, but fell short of U.S. Treasuries. Below investment-grade
and emerging market debt securities yielded modestly positive or
negative returns over the fiscal year period.
The portfolio composition was purposefully and consistently
adjusted toward a longer duration and higher quality average over
the fiscal year period. Thus, the portfolio duration was
approximately one-half year longer than the year-ago target, and
the percentage of assets in high-yield corporate securities was
reduced.
Past performance is no guarantee of future results.
---------------------
143
<PAGE> 145
SUNAMERICA ASSET MANAGEMENT CORP.
[High-Yield Bond Portfolio]
<TABLE>
<CAPTION>
High-Yield Bond Merrill Lynch High-
Portfolio Yield Master Index(1)
<S> <C> <C>
2/9/93 10000 10000
10140 10189
5/31/93 10490 10581
10810 10999
11/30/93 11120 11318
11540 11626
5/31/94 10884 11250
10760 11449
11/30/94 10647 11376
11070 12028
5/31/95 11651 12870
11583 13196
11/30/95 11993 13573
12517 14030
5/31/96 12652 14098
12952 14427
11/30/96 13775 15200
14349 15647
5/31/97 14388 15965
15202 16568
11/30/97 15776 17115
16524 17607
5/31/98 16924 17969
15960 17379
11/30/98 15577 17907
</TABLE>
High-Yield Bond Portfolio
Average Annual Total Returns as of 11/30/98
1-year -1.26$
5-year 6.97%
Since Inception (2/9/93) 7.93%
(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 one-year period ended November 30, 1998, can be broken neatly
in half. The first six months were characterized by rising prices,
low volatility, tightening risk premiums, and historically low
default rates. The latter period saw a sharp reversal of all these
trends. The high-yield market was hit with both fundamental and
technical problems. Fundamentally, weakening commodity prices
(energy, steel, paper, shipping, etc.) and deflation hurt highly
leveraged companies across the board. Technically, the market was
rocked by waves of selling from hedge funds that were forced to
meet margin calls. While the technical picture appears back in
balance as of November 30, 1998, fundamentals remain weak for
large sectors of the high-yield market.
Strategically, SunAmerica Asset Management had the right call on
the market, but tactically it was too early. While the
difficulties in the second half of 1998 were anticipated, the
portfolio was not prepared for the sharp degree of erosion. The
manager's belief that commodity weakness was properly priced in
the market was incorrect. In the May-June period, the manager
shifted some of the portfolio's telecommunication positions into
the commodity sectors. While the telecommunications sector has,
for the most part, come back strong, commodities continue to
languish.
The portfolio's weak recent quarter was severe enough to pull down
performance for the entire year. The one-year return of -1.26%
underperformed the Merrill Lynch High-Yield Master Index return of
4.63%. Looking forward, conditions remain challenging with
continued volatility expected, but valuations of the high-yield
sector do appear compelling. Investors are being paid a risk
premium that reflects good value. Commodity prices remain a
concern, but there are signs pointing to stability in paper and
steel, with little new capacity scheduled for the foreseeable
future. While emerging market instability continues to pose a
challenge, the manager believes the majority of the damage has
been done and the markets are poised for a slow recovery.
Past performance is no guarantee of future results.
- ---------------------
144
<PAGE> 146
MORGAN STANLEY ASSET MANAGEMENT INC.
[Worldwide High Income Portfolio]
<TABLE>
<CAPTION>
World Wide First Boston
High Income Blended High Yield JP Morgan
Portfolio Index(1) Index(2) EMBI Plus(3)
<S> <C> <C> <C> <C>
10/28/94 10000 10000 10000 10000
2/28/95 9856 9441 10463 8488
5/31/95 10775 10583 11122 10008
8/31/95 11190 10960 11400 10467
11/30/95 11544 11429 11714 11072
2/28/96 12265 12161 12152 12054
5/31/96 12802 12812 12284 13226
8/31/96 13417 13560 12554 14490
11/30/96 14645 14695 13078 16321
2/28/97 15467 15524 13683 17404
5/31/97 16024 15923 13925 17987
8/31/97 17114 16693 14491 19104
11/30/97 16721 16701 14882 18556
2/28/98 17671 17495 15391 19683
5/31/98 17780 17589 15631 19579
8/31/98 12492 14728 14703 14405
11/30/98 14423 16538 15139 17587
</TABLE>
Worldwide High Income Portfolio
Average Annual Total Returns as of 11/30/98
1-year -13.74%
Since Inception (10/28/94) 9.36%
(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.
The Worldwide High Income Portfolio returned -13.74% during the
one-year period ended November 30, 1998, underperforming the
benchmark's -0.98%. The benchmark is a Blended Index that combines
50% of the First Boston High-Yield Index and 50% of the J.P.
Morgan Emerging Markets Bond Index Plus.
After a strong first quarter, the global high yield market began
to weaken in the spring. Concern over a slowing global growth
rate, weak commodity prices, and uncertainty over the intentions
of the Federal Reserve all contributed to a widening of spreads.
The market was crushed in August when Russia defaulted on its
internal debt, with repercussions felt throughout virtually every
market. In a predictable flight to quality in the form of U.S.
Treasury bonds, equity markets tumbled and all qualities of
credit-sensitive bonds underperformed Treasuries.
Morgan Stanley has a mixed outlook for the next 12 months. On the
one hand, spreads are still quite wide, despite a strong rally
after the August sell off. In addition, the G-7 central banks have
cut interest rates several times since the summer to support the
world economy and to bolster the emerging markets. On the other
hand, corporate earnings have slowed, the Japanese economy
continues to languish, and Brazil has yet to implement effective
structural reforms. Given the overall wide spreads, Morgan Stanley
believes that a commitment to lower quality bonds is a good
investment at this time, given a long-term perspective.
Past performance is no guarantee of future results.
---------------------
145
<PAGE> 147
SUNAMERICA ASSET MANAGEMENT CORP.
[SunAmerica Balanced Portfolio]
<TABLE>
<CAPTION>
Lehman
Brothers SunAmerica
Aggregate Blended S&P 500 Balanced
Index(3) Index(1) Index(2) Portfolio
<S> <C> <C> <C> <C>
6/3/96 10000 10000 10000 10000
8/31/96 10144 9954 9797 9880
11/30/96 10730 11076 11438 11130
2/28/97 10690 11380 12005 11650
5/31/97 10833 11939 12942 12003
8/31/97 11162 12515 13780 12928
11/30/97 11544 13146 14701 13521
2/28/98 11801 14005 16210 14577
5/31/98 12016 14452 16916 15173
8/31/98 12341 13671 14897 13927
11/30/98 12634 15419 18180 16200
</TABLE>
SunAmerica Balanced Portfolio
Average Annual Total Returns as of 11/30/98
1-year 19.81%
Since Inception (6/3/96) 21.32%
(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 portfolio continued its outperformance during the one-year
period ended November 30, 1998. The portfolio returned 19.81%
versus 17.29% for its blended benchmark, comprised of 55% S&P 500,
35% Lehman Brothers Aggregate Index, and 10% Treasury Bills.
The U.S. economy remains on track, marked by low inflation,
consistent, albeit modest, corporate growth, and a budget surplus.
SunAmerica Asset Management does not believe the U.S. will enter a
recession in 1999. It believes corporate earnings will grow
approximately 5% in 1999 and inflation should remain in check,
with a CPI of roughly 1.5%. The market rally that began in early
October has renewed investor confidence, and the manager believes
that the Federal Reserve Board's latest interest rate cuts have
sent the right signal to the markets. The manager expects the Fed
to continue to lower interest rates in an effort to buffer
financial shocks and reduce the risk of a U.S. recession in 1999.
The portfolio continues to benefit from its investment theme of
quality and growth. During the most recent quarter, the manager
increased its exposure to select health care and technology
positions, while reducing its overall exposure to the financial
sector. The top five holdings at the end of the most recent
quarter were International Business Machines Corp., Microsoft
Corp., General Electric Co., Intel Corp., and Philip Morris Cos.,
Inc. At the end of the quarter, the portfolio was allocated 66.0%
in equities, 26.6% in fixed income, and 7.4% in cash. It is
important to note that cash flow volatility also affected the
portfolio's year-end return.
Looking forward to 1999, SAAMCO will continue to pursue companies
with above-average revenue and earnings growth. Recently, it has
increased the portfolio's weighting in the telecommunications and
media sectors, as it anticipates these two industries will benefit
from synergistic opportunities in 1999. In summary, the
longer-term direction of the market will be affected by the
balance between expectations for improvement in the world economic
growth outlook and the reality that world growth has slowed
considerably for every region of the globe. The market will be
driven by investor perception of weakening corporate earnings in
the first half of 1999 and a stronger focus on strengthening
second half earnings. SunAmerica Asset Management expects
continued high volatility in the equity markets in 1999.
Past performance is no guarantee of future results.
- ---------------------
146
<PAGE> 148
PHOENIX INVESTMENT COUNSEL, INC.
[BALANCED/PHOENIX INVESTMENT COUNCIL PORTFOLIO]
<TABLE>
<CAPTION>
Balanced/Phoenix Lehman Brothers
Investment Blended Aggregate Index S&P 500 Index
Counsel Portfolio Index(1) (2) (3)
<S> <C> <C> <C> <C>
10/28/94 10000 10000 10000 10000
10509 10639 10513 10817
5/31/95 11112 11473 11140 11923
11755 11935 11332 12636
11/30/95 12539 12661 11765 13698
12965 13131 11799 14571
5/31/96 13059 13445 11627 15313
12776 13383 11795 15002
11/30/96 14262 14892 12477 17514
14409 15300 12430 18383
5/31/97 14874 16052 12596 19817
15543 16826 12979 21102
11/30/97 16191 17675 13423 22511
17069 18830 13722 24821
5/31/98 17658 19431 13971 25902
16196 18381 14350 22812
11/30/98 18384 20731 14691 27838
</TABLE>
Balanced/Phoenix Investment Counsel Portfolio
Average Annual Total Returns as of 11/30/98
1-year 13.54%
Since Inception (10/28/94) 16.04%
(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 portfolio posted a gain of 13.54% for the one-year period
ended November 30, 1998, while its balanced benchmark index earned
17.29% (benchmark comprised of 55% S&P 500, 35% Lehman Brothers
Aggregate Bond Index, and 10% Treasury Bills). The global
liquidity crisis had a significant negative impact on every sector
of the bond market except U.S. government securities. As the
crisis spread, even AAA-rated mortgage-backed securities came
under pressure.
The portfolio was overweighted in the health care and technology
sectors, relative to the benchmark. This exposure proved to be a
positive contributor to performance, as these are two sectors that
performed exceptionally well over the last 12 months. Strong stock
selection, most notably in the consumer staples and capital goods
sectors, also enhanced overall results. Factors that hindered
performance over this period included the portfolio's exposure to
the energy group as well as some of the individual holdings in the
consumer cyclical and technology sectors. On the fixed-income
side, performance was diminished as a result of the portfolio's
underweighted allocation to Treasuries.
Past performance is no guarantee of future results.
---------------------
147
<PAGE> 149
GOLDMAN SACHS ASSET MANAGEMENT
[ASSET ALLOCATION PORTFOLIO]
<TABLE>
<CAPTION>
Lehman
Asset Brothers
Allocation Blended Aggregate S&P 500
Portfolio Index(1) Index(2) Index(3)
<S> <C> <C> <C> <C>
7/1/93 10000 10000 10000 10000
10250 10071 10231 9959
11/30/93 10360 10082 10209 9991
10800 10197 10222 10173
5/31/94 10522 9971 9888 10015
10955 10340 10075 10504
11/30/94 10391 10027 9896 10097
11177 10724 10404 10922
5/31/95 11961 11637 11024 12039
12620 12134 11215 12759
11/30/95 13103 12932 11643 13831
13700 13439 11677 14713
5/31/96 14055 13766 11507 15461
14033 13680 11673 15147
11/30/96 15759 15362 12347 17684
16617 15797 12303 18561
5/31/97 17573 16623 12468 20010
19043 17481 12849 21306
11/30/97 19221 18431 13287 22729
20490 19729 13582 25062
5/31/98 20584 20394 13829 26154
18007 19174 14204 23033
11/30/98 19769 21840 14541 28108
</TABLE>
Asset Allocation Portfolio
Average Annual Total Returns as of 11/30/98
1-year 2.85%
5-year 13.80%
Since Inception (7/1/93) 13.40%
(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 2.85% during the one-year
period ended November 30, 1998, underperforming its benchmark. The
Blended S&P 500 (60%) and Lehman Brothers Aggregate (40%) Index
returned 18.50%. The cause of the portfolio's underperformance
stems from the equity portion of the portfolio's mid-cap bias as
well as its value discipline.
Volatile global conditions and uncertainty about U.S. corporate
earnings growth caused significant market volatility this year.
Large cap stocks outperformed their small- and mid-cap
counterparts for the year, with the S&P 500 (with income)
returning 23.67% during the reporting period. However, Goldman
Sachs believes that many large-cap securities are overvalued and
do not exhibit the strong fundamentals that many mid-cap stocks
currently offer.
Goldman Sachs' value discipline allowed it to exploit market
anomalies and invest in companies that sell at a substantial
discount to the market in their respective industries. Although
the S&P 500 Value Index considerably underperformed the S&P 500
Growth Index for the year, Goldman Sachs believes that value
investments will generate solid returns over a multi-year
investment horizon.
Past performance is no guarantee of future results.
- ---------------------
148
<PAGE> 150
FEDERATED INVESTORS
[Utility Portfolio]
<TABLE>
<CAPTION>
Utility Portfolio S&P 500 Index (1) Blended Index(2)
<S> <C> <C> <C>
6/3/96 10000 10000 10000
8/31/96 9850 9797 10138
11/30/96 10750 11438 11067
2/28/97 11240 12005 11811
5/31/97 11541 12942 11873
8/31/97 11672 13780 12054
11/30/97 13035 14701 14732
2/28/98 13772 16210 16054
5/31/98 14156 16916 16768
8/31/98 13476 14897 16421
11/30/98 15118 18180 19742
</TABLE>
Utility Portfolio
Average Annual Total Returns as of 11/30/98
1-year 15.98%
Since Inception (6/3/96)
(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.
Amid a tumultuous year for financial markets, the Utility
Portfolio performed satisfactorily. During the one-year period
ended November 30, 1998, the Utility Portfolio returned 15.98%.
The S&P 500 Index returned 23.67% and the Blended Index (35% S&P
Utility, 65% S&P Communications Service) returned 23.41%. The
Portfolio's low-risk, value-oriented strategy protected investors
against shocks--notably the S&P 500's sharp decline from July 17
to October 8. During this time period, the Utility Portfolio rose
4.95%, and posted a gross current yield of 4.30%.
The emphasis throughout the period was on undervalued sectors with
potential positive catalysts. As of November 30, electric
companies were the largest sector, comprising 46% of the
portfolio. Industry deregulation and restructuring are resulting
in consolidation and takeovers. Recently, two of the portfolio's
largest holdings, Pacificorp and New England Electric, received
takeover bids from U.K. utilities. The best performer in this
sector this year was PECO Energy, which returned 77%.
The gas sector, which returned 11.4% over the last 12 months, was
the portfolio's second largest sector, at 20%. The best performer
was Enron, up 36%. Telecommunications stocks, which returned 38.2%
as a sector, excelled as demands for telecommunications services
continued to surge. Internet, data, and enhanced services such as
Caller I.D. are growing rapidly and are highly profitable. MCN,
parent of Michcon gas, was the portfolio's worst performer at
-50%. However, due to a management change at MCN, the portfolio is
increasing its position to take advantage of the stock's 5.5%
dividend yield and attractive valuation.
The manager believes the utility sector is entering an exciting
phase, as fundamental earnings prospects and financial conditions
are the best in years, management is better, and an acceleration
in takeovers from industry consolidation is boosting share prices.
With earnings growth of about 10% this year and next, 7.5% to 8%
dividend yields, and substantial asset values in steady real
estate investments, Federated is optimistic about the prospects of
the utility sector.
Past performance is no guarantee of future results.
---------------------
149
<PAGE> 151
ALLIANCE CAPITAL MANAGEMENT L.P.
[Growth-Income Portfolio]
<TABLE>
<CAPTION>
Growth-Income Portfolio S&P 500 Index (1)
<S> <C> <C>
2/9/93 10000 10000
9970 9915
5/31/93 10190 10144
10630 10517
11/30/93 10610 10551
10730 10743
5/31/94 10618 10576
10959 11092
11/30/94 10377 10663
11230 11533
5/31/95 12141 12713
12921 13473
11/30/95 13894 14606
14775 15537
5/31/96 15356 16327
14966 15995
11/30/96 17703 18675
18660 19601
5/31/97 20244 21130
21871 22500
11/30/97 23032 24002
25566 26466
5/31/98 26676 27618
22910 24323
11/30/98 28078 29683
</TABLE>
Growth-Income Portfolio
Average Annual Total Returns as of 11/30/98
1-year 21.91%
5-year 21.49%
Since Inception (2/9/93) 19.45%
(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-Income Portfolio returned 21.91% during the one-year
period ended November 30, 1998, underperforming the S&P 500 Index,
which returned 23.67%. The portfolio, like the rest of the U.S.
stock market, was clearly affected by concerns over the global
economy. Fortunately, as central bankers restored confidence in
the capital markets, the stock market and the Growth-Income
Portfolio both recovered as a result.
The portfolio benefited from good performance in the technology,
retail, and health care sectors. Dell Computer, which nearly
tripled in value during the last year, was a significant positive
contributor. Cisco, Lucent, and IBM were also very profitable
positions. In the retail sector, the portfolio benefited from
strong performance on the part of Dayton Hudson, Wal-Mart, and
Home Depot. In the health care sector, Pfizer and Schering-Plough
had a positive impact on performance.
On the negative side, the portfolio suffered from poor performance
in the financial and energy sectors. Some of its largest holdings
in the financial sector hold substantial businesses in the world's
emerging economies. In the long run, exposure to emerging
economies will be a very important source of growth for these
companies. However, in the last several months, these stocks have
been negative performers. The portfolio's energy holdings have
also performed poorly, largely because of continued weakness in
energy prices. Oil prices will eventually recover, but the
recovery is taking much longer than Alliance anticipated. However,
the portfolio's large energy holdings are attractively valued and
expected to rebound sharply once energy prices recover.
Past performance is no guarantee of future results.
- ---------------------
150
<PAGE> 152
FEDERATED INVESTORS
[FEDERATED VALUE PORTFOLIO]
<TABLE>
<CAPTION>
Federated Value
Portfolio S&P 500 Index (1)
<S> <C> <C>
6/3/96 10000 10000
8/31/96 9620 9797
11/30/96 11080 11438
2/28/97 11540 12005
5/31/97 12369 12942
8/31/97 13141 13780
11/30/97 13933 14701
2/28/98 15186 16210
5/31/98 16164 16916
8/31/98 13590 14697
11/30/98 16472 18180
</TABLE>
Federated Value Portfolio
Average Annual Total Returns as of 11/30/98
1-year 18.22%
Since Inception (6/3/96) 22.14%
(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 one-year period ended November 30, 1998, posted another
respectable year for the portfolio, which provided a total return
of 18.22% compared to 23.67% for Standard & Poor's 500 Index.
The past 12 months have been marked by increased volatility and a
flight to quality in the markets. The "Asian contagion," economic
uncertainty, the unwinding of hedge funds leverage, lower
commodity prices, and general investor unrest caused the equity
markets to favor ultra-large, high-quality, consistent-earner
growth stocks over the past fiscal year. This narrow market
participation, despite overall healthy market returns, made it
very difficult for active value managers to provide competitive
total returns relative to the S&P 500 benchmark. In fact, the
majority of the market's return was focused in the 42 largest
companies, which account for one-half of the S&P 500's market
weighting. Moreover, small capitalization stocks actually lost
value for the fiscal year and value stocks struggled as
economically sensitive and commodity-exposed stocks lost favor.
The portfolio benefited from positive performance in the consumer
staples (Viacom and Tricon Global Restaurants), utility (PECO
Energy and Public Service Enterprises), and basic industry
(Barrick Gold) sectors, as well as from its underweighted position
in the poorly performing finance sector. Unfortunately, the
portfolio was also underweight in the stronger performing
technology and health care sectors. An overweighted position in
the unfavorable energy (Occidental Petroleum and Sunoco) and
transportation (CNF Transportation and Ryder Systems) sectors also
proved to be a drag on performance.
The manager has begun adding to the portfolio's finance holdings,
given the sector's year-to-date weakness, with exposure
predominantly outside the commercial bank arena. New additions
include Washington Mutual. Looking ahead, despite the recent
underperformance of the manager's value investment style,
Federated remains committed to its investment discipline. Over
time, it believes that its proprietary valuation models and
security selection process--identifying leading companies
temporarily out of favor--will add value to investor portfolios.
Past performance is no guarantee of future results.
---------------------
151
<PAGE> 153
DAVIS SELECTED ADVISERS, L.P.
[VENTURE VALUE PORTFOLIO]
<TABLE>
<CAPTION>
Venture Value Portfolio S&P 500 Index(1)
<S> <C> <C>
10/28/94 10000 10000
2/28/95 10684 10817
5/31/95 11678 11923
8/31/95 12952 12636
11/30/95 13514 13698
2/28/96 14113 14571
5/31/96 14623 15313
8/31/96 14572 15002
11/30/96 17221 17514
2/28/97 18148 18383
5/31/97 19369 19817
8/31/97 21344 21102
11/30/97 22322 22511
2/28/98 23912 24821
5/31/98 24577 25902
8/31/98 20499 22812
11/30/98 24857 27838
</TABLE>
Venture Value Portfolio
Average Annual Total Returns as of 11/30/98
1-year 11.36%
Since Inception (10/28/94) 24.91%
(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 delivered a total return of 11.36% for
the one-year period ended November 30, 1998, as compared to the
S&P 500 performance of 23.67%.
The market's volatility over the past year has been a test of
conviction. The conviction is to resist selling great companies,
and rather to buy more shares when the markets are in chaos. Davis
Selected Advisers believes the recent market declines, however
painful, represent opportunities to buy favorite stocks at much
better prices. The manager continues to take advantage of market
downturns by upgrading the quality of the portfolio and sticking
with large weightings in companies that are selling at well-below
market multiples despite their strong prospects for long-term
earnings growth.
The portfolio has substantial exposure in the financial,
technology, and consumer products sectors. American Express, Wells
Fargo & Company, Hewlett Packard, and McDonald's are among the top
holdings. American Express is the portfolio's top holding. Its
position was increased throughout the year when the stock came
under short-term pressure. American Express is a financial growth
company with a brand name recognized worldwide. It particularly
benefits from the American consumer's propensity to "pay with
plastic," although its profits come from membership fees and
transaction charges rather than risky lending.
Hewlett Packard is the largest technology holding in the
portfolio, providing exposure to the growth of the technology
sector through a dominant industry leader with diversified lines
of business. However, Hewlett Packard does not possess the high
price/earnings (P/E) risk of today's intensely high-growth stocks.
The manager is committed to long-term wealth building for
shareholders by remaining true to the investment discipline it has
followed for over 30 years. The Davis investment discipline is to
purchase well-managed companies with reasonable P/Es and
sustainable earnings growth.
Past performance is no guarantee of future results.
- ---------------------
152
<PAGE> 154
SUNAMERICA ASSET MANAGEMENT CORP.
["DOGS" OF WALL STREET PORTFOLIO]
<TABLE>
<CAPTION>
Dogs of Wall Street S&P 500 Index(1)
<S> <C> <C>
4/1/98 10000 10000
4/30/98 9840 10101
5/31/98 9740 9927
6/30/98 9700 10330
7/31/98 9500 10221
8/31/98 8400 8743
9/30/98 8790 9303
10/31/98 9410 10060
11/30/98 9810 10669
</TABLE>
"Dogs" of Wall Street Portfolio
Total Return as of 11/30/98*
Since Inception (4/1/98) -1.90%
*Not annualized.
(1)The S&P 500 Index tracks the performance of 500 stocks representing a
sampling of the largest foreign and domestic stocks traded publicly in the
United States. Because it is market-weighted, the index will reflect changes
in larger companies more heavily than those in smaller companies.
The portfolio seeks total return through a passively managed
strategy involving the annual selection of 30 high-end
dividend-yielding common stocks from the Dow Jones Industrial
Average and the broader market. The 30 stocks consist of the 10
highest yielding stocks in the Dow (the traditional "Dogs of the
Dow" theory) and the 20 other highest yielding of the largest
industrial companies in the market. The 20 other highest-yielding
stocks must have a market capitalization of at least $1 billion
and have been assessed as being of high quality from the
perspective of historical earnings and dividend performance. This
compilation of stocks is held for one year, at which point the
overall portfolio is reviewed and rebalanced within a quantitative
model.
From the inception of the Portfolio on April 1, 1998, through
November 30, 1998, the Portfolio had a total return of -1.90% as
compared to the S&P 500 Index return of 6.69%. Top holdings during
this period included American Home Products Corp., Anheuser-Busch
Cos., Inc., Rubbermaid, Inc., SBC Communications, Inc., and ALLTEL
Corp.
The value side of the market proved to be a difficult challenge in
1998. In fact, the 20 largest stocks in the S&P 500 Composite
Index fueled over half of all market returns during the period,
and now comprise over a third of market capitalization. As of mid-
December 1998, the largest 50 holdings in the S&P 500 provided a
total return of 36%, while the smallest 50 stocks returned -36%.
The manager continues to believe that value investing is an
excellent strategy and that the fundamentals for many of these
companies are strong and improving.
Past performance is no guarantee of future results.
---------------------
153
<PAGE> 155
PUTNAM INVESTMENTS
[PUTNAM GROWTH PORTFOLIO]
<TABLE>
<CAPTION>
Putnam Growth Russell 1000
Portfolio Growth Index(1) S&P 500 Index(2)
<S> <C> <C> <C>
2/9/93 10000 10000 10000
9910 9830 9915
5/31/93 9810 9956 10144
10190 10085 10517
11/30/93 10040 10220 10551
10480 10443 10743
31-May 10039 10137 10576
10499 10742 11092
11/30/94 10059 10497 10663
10399 11358 11533
5/31/95 11227 12363 12713
12721 13389 13473
11/30/95 13143 14561 14606
13323 15410 15537
5/31/96 14236 16388 16327
13614 15848 15995
11/30/96 15761 18388 18675
16143 19161 19601
5/31/97 16926 20723 21130
18358 22085 22500
11/30/97 19862 23262 24002
21967 26048 26466
5/31/98 22969 26681 27618
20223 23905 24323
11/30/98 24343 29927 29683
</TABLE>
Putnam Growth Portfolio
Average Annual Total Returns as of 11/30/98
1-year 22.56%
5-year 19.38%
Since Inception (2/9/93) 16.55%
(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 larger companies more heavily than those in smaller companies.
For the year ended November 30, l998, the Putnam Growth Portfolio
returned 22.56%, lagging the S&P 500 Index return of 23.67% and
the Russell 1000 Index return of 28.65%. Large-capitalization
stocks continued to lead the markets during this period.
The portfolio fared well during the first half of the year,
benefiting from strong performance in large-cap technology stocks.
Overweight positions in the three top performing
sectors -- technology, health care, and consumer
cyclicals -- contributed to the portfolio's overall performance.
In technology, the Putnam team focused on software and PC
companies. In health care, the emphasis was on major
pharmaceuticals. In consumer cyclicals, the portfolio held
significant positions in major retailers.
During the tumultuous third quarter of the year, the portfolio
underperformed the benchmark as holdings in the finance sector
dragged down returns.
Given the unsettled nature of the global economy, Putnam believes
the market will remain volatile. However, the U.S. continues to
benefit from low inflation and recent declines in interest rates,
which should serve as a foundation for domestic stability.
The portfolio remains overweight in consumer cyclicals (primary
retail), and in selected technology and health care sectors.
Relative to the benchmark, the portfolio is underweight in energy,
basic industry, and utilities. Putnam will continue to rely on its
disciplined approach to stock selection to achieve long-term
results.
Past performance is no guarantee of future results.
- ---------------------
154
<PAGE> 156
PHOENIX INVESTMENT COUNSEL, INC.
[GROWTH/PHOENIX INVESTMENT COUNSEL PORTFOLIO]
<TABLE>
<CAPTION>
Growth/Phoenix Inv.
Cnsl Portfolio S&P 500 Index(1)
<S> <C> <C>
2/9/93 10000 10000
9970 9915
5/31/93 10420 10144
10550 10517
11/30/93 10780 10551
11210 10743
5/31/94 10437 10576
10477 11092
11/30/94 10065 10663
10537 11533
5/31/95 11433 12713
12594 13473
11/30/95 13378 14606
13846 15537
5/31/96 14496 16327
14177 15995
11/30/96 15839 18675
15850 19601
5/31/97 16944 21130
17916 22500
11/30/97 18973 24002
20370 26466
5/31/98 21379 27618
18644 24323
11/30/98 22353 29683
</TABLE>
Growth/Phoenix Investment Counsel Portfolio
Average Annual Total Returns as of 11/30/98
1-year 17.82%
5-year 15.70%
Since Inception (2/9/93) 14.85%
(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 Portfolio posted a gain of 17.82% for the one-year period
ended November 30, 1998. During the same reporting cycle, the S&P
500 Composite Index earned 23.67%. Positive contributors to the
portfolio's performance included its overweighted exposure to the
health care and technology sectors -- two areas that performed
exceptionally well over the last 12 months.
Strong stock selection, most notably in the consumer staples and
capital goods sectors, was heavily biased toward large-cap, stable
growth companies with minimal revenue exposure to Asia and other
emerging markets. Strong performance among select individual
holdings served to enhance the portfolio's overall return. Factors
that hindered performance over this period included the
portfolio's exposure to the energy group as well as some of its
individual holdings in the consumer cyclical and technology
sectors.
Past performance is no guarantee of future results.
---------------------
155
<PAGE> 157
ALLIANCE CAPITAL MANAGEMENT L.P.
[ALLIANCE GROWTH PORTFOLIO]
<TABLE>
<CAPTION>
Alliance Growth Russell 1000 Growth
Portfolio Index 1
<S> <C> <C>
2/9/93 10000 10000
9870 9830
5/31/93 10160 9956
10640 10085
11/30/93 10920 10220
11160 10443
5/31/94 10726 10137
11276 10742
11/30/94 10818 10497
11540 11358
5/31/95 13130 12363
15068 13389
11/30/95 16109 14561
16841 15410
5/31/96 17742 16388
16696 15848
11/30/96 20628 18388
21288 19161
5/31/97 23429 20723
25672 22085
11/30/97 26362 23262
31024 26048
5/31/98 32649 26681
28854 23905
11/30/98 35831 29927
</TABLE>
Alliance Growth Portfolio
Average Annual Total Returns as of 11/30/98
1-year 35.92%
5-year 26.83%
Since Inception (2/9/93) 24.57%
(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 significantly outperformed the
Russell 1000 Growth Index for the one-year period ended November
30, 1998, with a 35.92% return versus the benchmark return of
28.65%. Strong stock selection, overweights in both the technology
and consumer services (particularly retail) sectors, and
opportunistic trading were the most significant contributors to
portfolio performance.
At November 30, technology, consumer services, financials, and
health care represented 82.3% of the market value of the
portfolio. Due to significant declines in August, financials, at
approximately 19% of the portfolio, were down from their July 31,
1998, level of 25%. The strongest contributors to performance
during the period were Dell Computer (188%), Nokia (138%), Cisco
(96%), Home Depot (78%), and Tyco (68%). At November 30, these
companies represented nearly 21% of the market value of the
Alliance Growth Portfolio.
Alliance Capital continues to emphasize companies that offer
superior management, leading competitive positions, superior
products/franchises/technologies, and strong financial
characteristics. These companies should continue to excel in an
environment of moderate economic growth, restrained inflation, and
stable interest rates, where earnings power and predictability are
a relatively rare phenomenon.
Past performance is no guarantee of future results.
- ---------------------
156
<PAGE> 158
ALLIANCE CAPITAL MANAGEMENT L.P.
[GLOBAL EQUITIES PORTFOLIO]
<TABLE>
<CAPTION>
Global Equities Portfolio MCSI World Index (1)
<S> <C> <C>
2/9/93 10000 10000
9970 10110
5/31/93 10670 11446
11260 12102
11/30/93 10990 11497
12090 12694
5/31/94 11976 12561
12409 13156
11/30/94 11755 12610
11614 12732
5/31/95 12649 13935
13054 14310
11/30/95 13574 15006
14374 15829
5/31/96 15078 16492
14648 16182
11/30/96 16046 17891
16325 18031
5/31/97 17599 19390
18191 19879
11/30/97 18180 20218
20205 22466
5/31/98 21489 23357
17916 20699
11/30/98 20968 24348
</TABLE>
Global Equities Portfolio
Average Annual Total Returns as of 11/30/98
1-year 15.34%
5-year 13.79%
Since Inception (2/9/93) 13.60%
(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 returned 15.34%, underperforming the
MSCI World Index at 20.43%, for the one-year period ended November
30, 1998. Most of that underperformance occurred during August,
when global economic concerns reached a peak.
The portfolio's underperformance relative to the benchmark can be
attributed largely to its asset allocation. The portfolio held a
modest position in both Latin America and cash, which proved
detrimental. Regional exposures changed little over the course of
the year, with Europe modestly overweight and Japan and North
America modestly underweight. Stock selection was positive in all
major regions except North America. Among the portfolio's non-U.S.
holdings, Nokia, Equant, Railtrack, Pinault-Printemp, Unicredito,
and Nestle were major positive contributors to performance.
However, exchange rate-sensitive stocks in Japan impeded
performance. They declined sharply in the wake of October's rapid
rise of the yen.
Alliance believes that global equities will remain challenged in
1999 due to continuing external and internal conditions. Many of
the global economic issues that haunted the markets over the
summer have not been resolved. Japan remains plagued by lack of
consumption and an ongoing credit crunch that is unlikely to
change under current efforts. Asian economies are bottoming, but
will recover slowly as their systems reliquify. Latin America
appears set for a year of very tepid and possibly negative Gross
Domestic Product (GDP) growth. Strong growth in Europe has now
given way to declining expectations and low order intake among
industrial companies, serving to offset the strength in
consumption and consumer confidence. The U.S. should remain the
critical player in sustaining global growth. But with
manufacturing declining and corporate profits set to slow their
rate of growth, unemployment trends may begin to reverse and
affect consumer confidence.
For now, Alliance remains focused on companies with visible
earnings, strong balance sheets, and, in the case of select
cyclicals, on those that have shown an ability to generate cash
throughout any economic cycle.
Past performance is no guarantee of future results.
---------------------
157
<PAGE> 159
PUTNAM INVESTMENTS
[INTERNATIONAL GROWTH AND INCOME PORTFOLIO]
<TABLE>
<CAPTION>
International Growth
and Income Portfolio MSCI EAFE Index(1)
<S> <C> <C>
6/2/97 10000 10000
6/30/97 10360 10554
8/31/97 10160 9928
11/30/97 10410 9586
2/28/98 11478 10769
5/31/98 12436 11141
8/31/98 10298 9941
11/30/98 11407 11195
</TABLE>
International Growth and Income Portfolio
Average Annual Total Returns as of 11/30/98
1-year 9.58%
Since Inception (6/2/97) 9.18%
(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.
The International Growth & Income Portfolio returned 9.58% for the
one-year period ended November 30, 1998, underperforming the MSCI
EAFE Index, which gained 16.78% during the period. Performance
remained steady throughout the year, with a concentration on
European equities.
Many of the portfolio's top performers were found in Continental
Europe. One such performer was Julius Baer, a Swiss financial
services company. Baer gained 95% amid aggressive distribution and
expansion into key markets, including the German mutual fund
marketplace. Vivende, the French telecommunications and water
utility, advanced 66% following cost cutting in its core business
and expansion into telecommunications. Pharmacia & Upjohn, the
Swedish/American pharmaceutical company, moved up 63% on the
strength of new product launches and successful restructuring,
which included new management. And at 62%, Telefonica de Espana
performed extremely well amid the implementation of a new
management team, divestiture of certain holdings, and expansion
into new markets.
Putnam reduced the portfolio's exposure to specific sectors and
holdings that caused performance to lag during the reporting
period. Reductions included global banks like ABN and Deutsche
Bank, as well as cyclicals like Rio Tinto, a British/Australian
metals producer, and Shell, an energy company.
Looking forward, Putnam continues to upgrade the portfolio's
overall quality to minimize near-term volatility. Positions in
undervalued stocks such as Bass, a leisure conglomerate based in
the U.K., and Hoechst, a European life sciences company, have been
increased to take advantage of their perceived upside potential.
Putnam will continue its bottom-up investment strategy to seek
stocks of established, dividend-paying companies undergoing
positive fundamental change and believed to be undervalued.
Past performance is no guarantee of future results.
- ---------------------
158
<PAGE> 160
MORGAN STANLEY ASSET MANAGEMENT INC.
[INTERNATIONAL DIVERSIFIED EQUITIES PORTFOLIO]
<TABLE>
<CAPTION>
International Diversified
Equities Portfolio MSCI EAFE Index (1)
<S> <C> <C>
10/28/94 10000 10000
2/28/95 9073 9655
5/31/95 9759 10525
8/31/95 10021 10573
11/30/95 10233 10790
2/28/96 10925 11316
5/31/96 11411 11682
8/31/96 10905 11437
11/30/96 11752 12091
2/28/97 11463 12560
5/31/97 12342 13506
8/31/97 12359 13408
11/30/97 12165 12946
2/28/98 13626 14544
5/31/98 14574 15046
8/31/98 13410 13426
11/30/98 14395 15119
</TABLE>
International Diversified Equities Portfolio
Average Annual Total Returns as of 11/30/98
1-year 18.33%
Since Inception (10/28/94) 9.31%
(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.
The International Diversified Equities Portfolio returned 18.33%
during the one-year period ended November 30, 1998, outperforming
the MSCI EAFE Index at 16.78%. The portfolio's defensive posture
regarding weaker international economies was a primary contributor
to maintaining strong performance in light of the global crisis.
Morgan Stanley decreased the portfolio's allocation to Europe,
primarily by reducing its exposure to Germany. The manager
anticipates that corporate earnings in Europe will continue to
fall short of expectations for a variety of reasons, including
deteriorating exports and Asian receivables, a lack of pricing
power, high labor rigidities, and high tax levels. Morgan Stanley
believes that there is a paralyzing complacency among senior
officials at the Bundesbank and the Bank of France regarding both
an economic slowdown and bank credit risks. As a result, the
portfolio remains underweight in Europe.
In Asia, the portfolio maintains overweight positions in Hong Kong
and Singapore, and has moved from an underweight to a neutral
position in Australia. The manager believes valuations in these
markets remain attractive despite bleak forecasts and the region's
susceptibility to another shock.
In Japan, deflation continues in spite of enormous fiscal and
monetary support. Furthermore, Japan and Asia (sans Japan) have
experienced substantial declines and now feature more defensive
characteristics. While Morgan Stanley does not believe there has
been a major fundamental change in Japan, the recent passage of
the bank reform bill is an important step. This environment could
become marginally more supportive in reaction to the desperate
state of the economy. The credit contraction continues to hamper
both capital and consumer spending. Valuations, particularly
relative to other markets, have become more attractive and the
portfolio has moved from a highly underweight position (50% of the
benchmark weight) to a more neutral stance of 75% of the benchmark
weight.
Past performance is no guarantee of future results.
---------------------
159
<PAGE> 161
DAVIS SELECTED ADVISERS, L.P.
[REAL ESTATE PORTFOLIO]
<TABLE>
<CAPTION>
Morgan Stanley REIT
Real Estate Portfolio Index(1)
<S> <C> <C>
6/2/97 10000 10000
6/30/97 10470 10529
8/31/97 10710 10741
11/30/97 11530 11608
'2/28/98"' 11539 11513
5/31/98 11315 11270
8/31/98 9479 9488
11/30/98 10027 10044
</TABLE>
Real Estate Portfolio
Average Annual Total Returns as of 11/30/98
1-year -13.04%
Since Inception (6/2/97) 0.18%
(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 delivered a total return of -13.04% for
the one-year period ended November 30, 1998, compared to -13.47%
for the Morgan Stanley Real Estate Investment Trust (REIT) Index.
The year proved to be challenging for REITs, with earnings growth
for real estate companies slowing substantially from the
exceptionally high levels of recent years.
Although 1998 proved difficult, REITs are now offering some of the
best fundamentals of any publicly traded companies and are selling
at recession-like multiples. Looking at the real estate holdings
within the portfolio, businesses that are currently growing their
earnings at about twice as fast as the S&P 500 are trading at
multiples of 70% or more lower than multiples on the S&P 500.
Quality companies such as Vornado Realty Trust, Home Properties NY
Inc., and Boardwalk Equities Inc.--which are among the top
holdings in the Portfolio--will ultimately be accorded premium
valuations in the market as other investors recognize their true
worth.
Looking forward, the manager anticipates annual earnings increases
of 6% to 8%, plus a dividend yield of 6% in 1999. This would
produce a total return of approximately 12%, assuming multiples
remain constant. Davis believes the evidence indicates real estate
is attractively undervalued. While it cannot predict market moves,
the manager is extremely comfortable increasing the positions of
well run companies capable of generating steadily increasing
rental income and solid returns on capital.
Past performance is no guarantee of future results.
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160
<PAGE> 162
SUNAMERICA ASSET MANAGEMENT CORP.
[AGGRESSIVE GROWTH PORTFOLIO]
<TABLE>
<CAPTION>
Aggressive Growth
Portfolio Russell 2000 Index(1)
<S> <C> <C>
6/3/96 10000 10000
8/31/96 9270 9260
11/30/96 10360 9864
2/28/97 10120 10054
5/31/97 10099 10675
8/31/97 10741 11917
11/30/97 11771 12149
2/28/98 12281 13065
5/31/98 12081 12941
8/31/98 9919 9603
11/30/98 12331 11342
</TABLE>
Aggressive Growth Portfolio
Average Annual Total Returns as of 11/30/98
1-year 4.76%
Since Inception (6/3/96) 8.76%
(1)The Russell 2000 Index is comprised of the smallest 2000 companies in the
Russell 3000 Index, representing approximately 11% of the Russell 300
total market capitalization. The Index was developed with a base value of
$135.00 as of December 31, 1986.
For the one-year period ended November 30, 1998, the portfolio
returned 4.76%, outperforming the Russell 2000 Index return of
-6.64%. This past year was characterized by extraordinary
volatility. With the market in a broad retreat in 1997, the lows
soon led to a tremendous rally and new all-time highs in the
spring of 1998. Then, of course, the Asian economic and financial
crisis, coupled with weakening U.S. corporate earnings, led the
market into yet another swoon. The situation was saved by the
Federal Reserve pumping liquidity into the financial system with
three recent, consecutive interest rate cuts.
While the portfolio suffered its share of volatility along with
the market this year, progress was made on a relative basis within
the small cap universe of aggressive growth stocks. Among other
factors, the manager attempted to identify companies whose
revenues and earnings have been growing consistently at 20% or
more over several years. The past year's volatility provided a
window of opportunity to buy new ideas as well as add to the
portfolio's existing positions at very reasonable prices. These
positions included CMG Information Services, DSET Corp., Entrust
Technologies, GST Telecommunications, The Kroll O'Gara Co., Lumen
Technologies, and Travel Services.
Throughout the fiscal year, the portfolio maintained its core
positions in the technology, telecommunications, consumer
cyclical, and "new" media sectors. Although weightings varied
throughout the year, these sectors continued to benefit from the
rally and were most responsive to the Fed's easing of interest
rates. The portfolio's top holdings in these industries include
America Online, Yahoo, At Home Corp., Legato Systems, Network
Appliance, Abercrombie and Fitch, Mohawk Carpet, and Century
Telephone.
In conclusion, 1998 was another difficult year for small cap
investors. This past year saw the top 20 large cap growth stocks
provide over 60% of the S&P's return. While the portfolio has been
diversified across many companies of different sizes within
selected industry groups, SunAmerica Asset Management believes
that small growth companies offer the most compelling value in
1999.
Past performance is no guarantee of future results.
---------------------
161
<PAGE> 163
PUTNAM INVESTMENTS
[EMERGING MARKETS PORTFOLIO]
<TABLE>
<CAPTION>
Emerging Markets MSCI Emerging Markets
Portfolio Free Index(1)
<S> <C> <C>
6/2/97 10000 10000
6/30/97 10410 10536
8/31/97 9350 9333
11/30/97 8030 7725
2/28/98 8474 8052
5/31/98 7647 7171
8/31/98 5155 4708
11/30/98 6275 5994
</TABLE>
Emerging Markets Portfolio
Average Annual Total Returns as of 11/30/98
1-year -21.86%
Since Inception (6/2/97) -26.73
(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, Colombia, 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.
For the one-year period ended November 30, 1998, the Portfolio
returned -21.86% versus the MSCI Emerging Markets Free Index,
which posted a return of -22.41%. Clearly, it was a dismal period
for emerging market investments. Nevertheless, Putnam continued to
focus on longer-term strategic investing to seek potential capital
appreciation in emerging markets through both country and stock
selection.
As 1997 ended, it appeared that a turnaround might be forthcoming.
However, economic turmoil in Asia, Latin America, and Eastern
Europe destabilized global markets and pushed emerging markets
sharply lower. In particular, economic woes in Asia restrained
performance through the first six months of 1998. The collapse of
the Russian economy in August further ravaged emerging markets,
especially those in Latin America. The third quarter of 1998
showed minor improvement, with Hong Kong and Thailand gaining some
ground.
Against this backdrop, Putnam maintained a limited exposure to
Russia, which severely underperformed throughout the period. In
fact, during the third quarter of 1998, all Russian holdings were
eliminated from the portfolio. Other tactical moves that enhanced
returns included a technology exposure in Taiwan, positive stock
selection in Brazil, and an overweight position in Mexico in early
1998.
Going forward, emerging markets will likely remain volatile. Yet,
there is cause for optimism amid indications that price declines
are bottoming and that worldwide panic selling has created
significant opportunities. Putnam has identified stocks in Latin
America, Europe, and Asia that it deems undervalued due to market
corrections. In addition, global policy makers are initiating more
of an effort to aid the worldwide crisis, and their efforts will
likely calm some of the more mature markets, allowing for a domino
effect recovery.
Past performance is no guarantee of future results.
- ---------------------
162
<PAGE> 164
PQ
1 SunAmerica Center
Los Angeles, California 90067-6022
- --------------------------------------------------------------------------------
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THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE PURCHASERS UNLESS
ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
A-1411-ARV (1/99)
