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SUNAMERICA SERIES TRUST
------------------------------------
EXTRACT ANNUAL REPORT FOR THE
FIRST AMERICAN ASSET MANAGEMENT PORTFOLIOS
JANUARY 31, 1999
[POLARIS LOGO]
THIS REPORT IS FOR THE GENERAL INFORMATION OF CONTRACT OWNERS
OF THE POLARIS PLUS VARIABLE ANNUITY.
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DEAR INVESTOR:
We are pleased to present our annual report for the First
American Asset Management Portfolios in the SunAmerica Series
Trust, one of the underlying trusts for the variable annuities
issued by Anchor National Life Insurance Company and First
SunAmerica Life Insurance Company. Please keep in mind that
while several of the SunAmerica Life companies' annuity products
have the SunAmerica Series Trust in common as an underlying
investment, not all of the Series' Portfolios are available in
all of the products.
During the period covered in this report, the U.S. stock
market advanced, with most major market indices reflecting a
continuation of the positive momentum experienced during the
latter part of 1998. Growth-oriented stocks continued to
outperform value-oriented stocks and narrow market leadership
was held by the largest and most highly valued stocks.
International equities enjoyed robust gains in December, but
stalled in January, while European bond markets rallied in
response to cuts in interest rates in a number of countries
across the region.
We appreciate the opportunity to serve your investment needs
and look forward to reporting to you again in six months.
Sincerely,
/s/ ELI BROAD
--------------------------------------
Eli Broad
Chairman and Chief Executive Officer
Anchor National Life Insurance Company
March 17, 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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1
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SUNAMERICA SERIES TRUST
EQUITY INDEX PORTFOLIO Investment Portfolio -- January 31, 1999
<TABLE>
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COMMON STOCK -- 96.8% SHARES VALUE
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CONSUMER DISCRETIONARY -- 8.6%
Apparel & Textiles -- 0.2%
Fruit Of The Loom, Inc., Class A+........................... 100 $ 1,450
Liz Claiborne, Inc. ........................................ 100 3,825
Nike, Inc., Class B......................................... 300 13,725
Reebok International Ltd.+.................................. 100 1,488
V.F. Corp. ................................................. 100 4,262
Venator Group, Inc.+........................................ 100 513
Automotive -- 1.7%
Cooper Tire & Rubber........................................ 100 2,144
Crane Co. .................................................. 100 2,719
Dana Corp. ................................................. 200 8,225
Ford Motor Co. ............................................. 1,300 79,869
General Motors Corp. ....................................... 700 62,825
Genuine Parts Co. .......................................... 200 6,375
Goodyear Tire & Rubber Co. ................................. 200 9,800
Navistar International Corp., Inc. ......................... 100 3,406
PACCAR, Inc. ............................................... 100 4,362
TRW, Inc. .................................................. 100 4,806
Housing -- 1.4%
Black & Decker Corp. ....................................... 100 5,300
Cooper Industries, Inc. .................................... 100 4,144
Home Depot, Inc. ........................................... 1,500 90,562
Lowe's Cos., Inc. .......................................... 400 23,325
Masco Corp. ................................................ 400 12,925
Maytag Corp. ............................................... 100 6,319
Owens Corning Co. .......................................... 100 3,575
Sherwin-Williams Co. ....................................... 200 5,125
Snap-On, Inc. .............................................. 100 3,400
Stanley Works............................................... 100 2,519
Retail -- 5.3%
Albertsons, Inc. ........................................... 300 18,300
American Greetings Corp., Class A........................... 100 3,950
American Stores Co. ........................................ 300 10,875
AutoZone, Inc.+............................................. 200 6,775
Circuit City Stores, Inc. .................................. 100 5,525
Consolidated Stores Corp.+.................................. 100 1,669
Costco Cos., Inc.+.......................................... 200 16,575
CVS Corp. .................................................. 400 21,900
Dayton Hudson Corp. ........................................ 500 31,875
Dillards, Inc., Class A..................................... 100 2,481
Dollar General Corp. ....................................... 200 4,988
Federated Department Stores, Inc.+.......................... 200 8,363
Fred Meyer, Inc.+........................................... 200 12,500
Gap, Inc. .................................................. 600 38,512
Harcourt General, Inc. ..................................... 100 4,800
International Flavors & Fragrances, Inc. ................... 100 4,363
Kmart Corp.+................................................ 500 8,781
Kohl's Corp.+............................................... 200 13,550
Kroger Co.+................................................. 300 19,050
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COMMON STOCK (CONTINUED) SHARES VALUE
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CONSUMER DISCRETIONARY (continued)
Retail (continued)
Limited, Inc. .............................................. 200 $ 6,825
May Department Stores Co. .................................. 200 12,075
Newell Co. ................................................. 200 8,313
Nordstrom, Inc. ............................................ 200 8,325
Penney (J.C.), Inc. ........................................ 300 11,756
Pep Boys Manny, Moe & Jack.................................. 100 1,575
Rite Aid Corp. ............................................. 300 14,737
Safeway, Inc.+.............................................. 500 28,062
Sears, Roebuck & Co. ....................................... 400 16,050
SUPERVALU, Inc. ............................................ 100 2,744
TJX Cos., Inc. ............................................. 300 8,869
Wal-Mart Stores, Inc. ...................................... 2,300 197,800
Walgreen Co. ............................................... 500 31,250
Winn-Dixie Stores, Inc. .................................... 200 9,137
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959,338
------------
CONSUMER STAPLES -- 8.6%
Food, Beverage & Tobacco -- 5.4%
Anheuser-Busch Cos., Inc. .................................. 500 35,344
Archer-Daniels-Midland Co. ................................. 600 9,075
Bestfoods................................................... 300 15,094
Brown-Forman Corp., Class B................................. 100 7,219
Campbell Soup Co. .......................................... 500 23,469
Coca-Cola Co. .............................................. 2,600 170,137
Coca-Cola Enterprises, Inc. ................................ 400 14,150
ConAgra, Inc. .............................................. 500 16,250
General Mills, Inc. ........................................ 200 16,787
H.J. Heinz & Co. ........................................... 400 22,525
Hershey Foods Corp. ........................................ 100 5,625
Kellogg Co. ................................................ 400 16,350
PepsiCo, Inc. .............................................. 1,500 58,594
Philip Morris Cos., Inc. ................................... 2,500 117,500
Quaker Oats Co. ............................................ 100 5,563
Ralston-Purina Group........................................ 300 8,212
RJR Nabisco Holdings Corp. ................................. 300 8,100
Sara Lee Corp. ............................................. 1,000 25,500
SYSCO Corp. ................................................ 400 10,900
UST, Inc. .................................................. 200 6,300
Wm Wrigley Jr. Co. ......................................... 100 9,362
Household Products -- 3.2%
Alberto Culver Co., Class B................................. 100 2,575
Avon Products, Inc. ........................................ 300 11,081
Clorox Co. ................................................. 100 12,513
Colgate-Palmolive Co. ...................................... 300 24,131
Fort James Corp. ........................................... 200 7,175
Fortune Brands, Inc. ....................................... 200 6,650
Gillette Co. ............................................... 1,200 70,500
Kimberly-Clark Corp. ....................................... 600 29,887
Owens-Illinois, Inc.+....................................... 200 5,850
Procter & Gamble Co. ....................................... 1,400 127,225
Tupperware Corp. ........................................... 100 2,056
Unilever NV................................................. 700 53,550
Whirlpool Corp. ............................................ 100 4,494
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959,743
------------
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COMMON STOCK (CONTINUED) SHARES VALUE
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ENERGY -- 5.4%
Energy Services -- 0.6%
Baker Hughes, Inc. ......................................... 300 $ 5,063
Coastal Corp. .............................................. 200 5,962
Halliburton Co. ............................................ 500 14,844
Helmerich & Payne, Inc. .................................... 100 1,756
Occidental Petroleum Corp. ................................. 400 6,025
Oryx Energy Co.+............................................ 100 1,219
Rowan Cos., Inc.+........................................... 100 881
Schlumberger Ltd. .......................................... 600 28,575
Energy Sources -- 4.8%
Amerada Hess Corp. ......................................... 100 4,750
Anadarko Petroleum Corp. ................................... 100 2,706
Apache Corp. ............................................... 100 1,925
Atlantic Richfield Co. ..................................... 300 17,212
BP Amoco PLC ADR............................................ 661 53,624
Burlington Resources, Inc. ................................. 200 6,050
Chevron Corp. .............................................. 700 52,325
Exxon Corp. ................................................ 2,500 176,094
Mobil Corp. ................................................ 800 70,150
Phillips Petroleum Co. ..................................... 300 11,587
Royal Dutch Petroleum Co. .................................. 2,200 88,137
Sonat, Inc. ................................................ 100 2,575
Sunoco, Inc. ............................................... 100 3,513
Texaco, Inc. ............................................... 600 28,425
Union Pacific Resources Group, Inc. ........................ 300 2,419
Unocal Corp. ............................................... 300 8,550
USX-Marathon Group, Inc. ................................... 300 6,825
------------
601,192
------------
FINANCE -- 14.9%
Banks -- 5.5%
Bank of New York Co., Inc. ................................. 800 28,400
Bank One Corp. ............................................. 1,200 62,850
BankAmerica Corp. .......................................... 1,800 120,375
BankBoston Corp. ........................................... 300 11,081
Bankers Trust New York Corp. ............................... 100 8,700
BB&T Corp. ................................................. 300 11,475
Chase Manhattan Corp. ...................................... 900 69,244
Comerica, Inc. ............................................. 200 12,488
Fifth Third Bancorp......................................... 300 20,531
First Union Corp. .......................................... 1,000 52,625
Fleet Financial Group, Inc. ................................ 600 26,587
Golden West Financial Corp. ................................ 100 9,388
Huntington Bancshares, Inc. ................................ 200 6,225
KeyCorp. ................................................... 500 15,937
Mellon Bank Corp. .......................................... 300 20,100
Mercantile Bancorp, Inc. ................................... 200 8,988
National City Corp. ........................................ 300 21,319
Northern Trust Corp. ....................................... 100 8,656
PNC Bank Corp. ............................................. 300 15,356
Regions Financial Corp. .................................... 200 7,675
Summit Bancorp.............................................. 200 8,163
SunTrust Banks, Inc. ....................................... 200 14,087
Synovus Financial Corp. .................................... 300 7,500
</TABLE>
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COMMON STOCK (CONTINUED) SHARES VALUE
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FINANCE (continued)
Banks (continued)
U.S. Bancorp................................................ 800 $ 26,950
Union Planters Corp. ....................................... 100 4,550
Wachovia Corp. ............................................. 200 17,725
Financial Services -- 6.4%
American Express Co. ....................................... 500 51,437
Associates First Capital Corp., Class A..................... 800 32,450
Bear Stearns Cos., Inc. .................................... 100 4,713
Capital One Financial Corp. ................................ 100 13,237
Charles Schwab Corp. ....................................... 400 28,125
Citigroup, Inc. ............................................ 2,400 134,550
Countrywide Credit Industries, Inc. ........................ 100 4,750
Dun & Bradstreet Corp. ..................................... 200 6,100
Federal Home Loan Mortgage Corp. ........................... 700 43,400
Federal National Mortgage Association....................... 1,100 80,162
Household International, Inc. .............................. 500 21,969
Lehman Brothers Holdings, Inc. ............................. 100 5,469
MBIA, Inc. ................................................. 100 6,556
MBNA Corp. ................................................. 800 22,350
Merrill Lynch & Co., Inc. .................................. 400 30,400
Morgan (J.P.) & Co., Inc. .................................. 200 21,100
Morgan Stanley, Dean Witter & Co. .......................... 600 52,087
Paychex, Inc. .............................................. 200 9,738
Providian Financial Corp. .................................. 150 15,122
Republic New York Corp. .................................... 100 3,663
SLM Holding Corp. .......................................... 200 8,813
State Street Corp. ......................................... 200 14,300
The Hartford Financial Services Group, Inc. ................ 200 10,387
Transamerica Corp. ......................................... 200 11,200
Washington Mutual, Inc. .................................... 600 25,200
Wells Fargo Co. ............................................ 1,700 59,394
Insurance -- 3.0%
Aetna, Inc. ................................................ 200 18,025
Allstate Corp. ............................................. 900 33,806
American General Corp. ..................................... 300 21,394
American International Group, Inc.*......................... 1,271 130,834
Aon Corp. .................................................. 200 10,150
Chubb Corp. ................................................ 200 11,750
CIGNA Corp. ................................................ 200 16,475
Cincinnati Financial Corp. ................................. 200 6,587
Conseco, Inc. .............................................. 300 9,281
Jefferson-Pilot Corp. ...................................... 100 7,575
Lincoln National Corp. ..................................... 100 8,331
Marsh & McLennan Cos., Inc. ................................ 300 18,862
MGIC Investment Corp. ...................................... 100 3,663
Progressive Corp. .......................................... 100 12,494
Provident Cos., Inc. ....................................... 100 4,287
SAFECO Corp. ............................................... 100 3,888
St. Paul Cos., Inc. ........................................ 200 5,875
Torchmark, Inc. ............................................ 100 3,281
UNUM Corp. ................................................. 100 6,044
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1,666,249
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HEALTHCARE -- 12.1%
Drugs -- 8.2%
Allergan, Inc. ............................................. 100 7,688
ALZA Corp.+................................................. 100 5,056
</TABLE>
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COMMON STOCK (CONTINUED) SHARES VALUE
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HEALTHCARE (continued)
Drugs (continued)
American Home Products Corp. ............................... 1,400 $ 82,162
Bristol-Myers Squibb Co. ................................... 1,000 128,187
Cardinal Health, Inc. ...................................... 200 14,788
Lilly (Eli) & Co............................................ 1,100 103,056
Merck & Co., Inc. .......................................... 1,200 176,100
Monsanto Co. ............................................... 600 28,537
Pfizer, Inc. ............................................... 1,400 180,075
Pharmacia & Upjohn, Inc. ................................... 500 28,750
Pioneer Hi-Bred International, Inc. ........................ 300 8,494
Schering-Plough Corp. ...................................... 1,500 81,750
Warner-Lambert Co. ......................................... 900 64,969
Health Services -- 0.6%
Columbia/HCA Healthcare Corp. .............................. 700 12,688
HCR Manor Care, Inc.+....................................... 100 2,675
HEALTHSOUTH Corp.+.......................................... 400 5,425
Humana, Inc. ............................................... 200 3,575
IMS Health, Inc. ........................................... 400 14,650
McKesson HBOC, Inc. ........................................ 185 13,898
Tenet Healthcare Corp.+..................................... 300 6,225
United HealthCare Corp. .................................... 200 8,950
Medical Products -- 3.3%
Abbott Laboratories, Inc. .................................. 1,600 74,300
Amgen, Inc.+................................................ 300 38,344
Bard (C.R.), Inc. .......................................... 100 5,063
Bausch & Lomb, Inc. ........................................ 100 6,137
Baxter International, Inc. ................................. 300 21,281
Becton Dickinson & Co. ..................................... 300 10,725
Biomet, Inc. ............................................... 100 3,663
Boston Scientific Corp.+.................................... 400 9,775
Guidant Corp. .............................................. 400 23,575
Johnson & Johnson Co. ...................................... 1,400 119,000
Mallinckrodt, Inc. ......................................... 100 3,494
Medtronic, Inc. ............................................ 500 39,844
Perkin-Elmer Corp. ......................................... 100 9,506
St. Jude Medical, Inc.+..................................... 100 2,606
------------
1,345,011
------------
INDUSTRIAL & COMMERCIAL -- 9.0%
Aerospace & Military Technology -- 1.3%
Allied Signal, Inc. ........................................ 600 23,400
Boeing Co. ................................................. 1,100 38,019
General Dynamics Corp. ..................................... 100 5,813
Goodrich (B.F.) Co. ........................................ 100 3,400
Lockheed Martin Corp. ...................................... 400 14,100
Northrop Grumman Corp. ..................................... 100 5,700
Raytheon Co., Class B....................................... 400 22,375
Rockwell Intl. Corp. ....................................... 200 8,687
United Technologies Corp. .................................. 200 23,887
Business Services -- 1.4%
Browning-Ferris Industries, Inc. ........................... 200 5,500
Cendant Corp.+.............................................. 900 19,575
Centex Corp. ............................................... 100 4,319
Ceridian Corp.+............................................. 100 7,937
DeLuxe Corp. ............................................... 100 3,563
Ecolab, Inc. ............................................... 100 3,875
Electronic Data Systems Corp. .............................. 500 26,219
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COMMON STOCK (CONTINUED) SHARES VALUE
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INDUSTRIAL & COMMERCIAL (continued)
Business Services (continued)
Equifax, Inc. .............................................. 200 $ 7,912
First Data Corp. ........................................... 500 19,156
Fluor Corp. ................................................ 100 3,813
Franklin Resources, Inc. ................................... 300 10,050
H&R Block, Inc. ............................................ 100 4,387
Johnson Controls, Inc. ..................................... 100 6,444
R.R. Donnelley & Sons Co. .................................. 100 3,769
Service Corp. International................................. 300 4,762
Waste Management, Inc. ..................................... 600 29,962
Electrical Equipment -- 3.2%
Danaher Corp. .............................................. 100 5,350
General Electric Co. ....................................... 3,400 356,575
Machinery -- 0.7%
Case Corp. ................................................. 100 1,894
Caterpillar, Inc. .......................................... 400 17,325
Deere & Co. ................................................ 300 9,769
Dover Corp. ................................................ 200 6,212
Grainger (W. W.), Inc. ..................................... 100 4,075
Illinois Tool Works, Inc. .................................. 300 18,094
Ingersoll-Rand Co. ......................................... 200 9,500
ITT Industries, Inc. ....................................... 100 4,006
Pall Corp. ................................................. 100 2,319
Parker Hannifin Corp. ...................................... 100 3,075
Thermo Electron Corp.+...................................... 200 3,325
Multi-Industry -- 1.7%
Berkshire Hathaway, Inc., Class B+.......................... 10 21,500
Corning, Inc. .............................................. 200 9,750
Dominion Resources, Inc. ................................... 200 8,950
Eaton Corp. ................................................ 100 6,962
Loews Corp. ................................................ 100 8,419
McDermott International, Inc. .............................. 100 2,069
Minnesota Mining & Manufacturing Co. ....................... 400 31,050
Raychem Corp. .............................................. 100 2,513
Seagram Co., Ltd. .......................................... 400 18,950
Tenneco, Inc. .............................................. 200 6,175
Textron, Inc. .............................................. 200 14,887
Tyco International Ltd. .................................... 700 53,944
Transportation -- 0.7%
Burlington Northern Santa Fe Corp. ......................... 500 17,312
CSX Corp. .................................................. 200 8,050
FDX Corp.+.................................................. 200 16,338
Laidlaw, Inc. .............................................. 300 2,550
Norfolk Southern Corp. ..................................... 400 11,025
Ryder System, Inc. ......................................... 100 2,438
Union Pacific Corp. ........................................ 300 15,431
------------
1,006,456
------------
INFORMATION & ENTERTAINMENT -- 4.5%
Broadcasting & Media -- 2.4%
CBS Corp.+.................................................. 700 23,800
Clear Channel Communications, Inc.+......................... 300 18,562
Dow Jones & Co., Inc. ...................................... 100 4,475
Gannett Co., Inc. .......................................... 300 19,744
Interpublic Group of Cos., Inc. ............................ 100 7,913
King World Productions, Inc.+............................... 100 2,738
</TABLE>
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COMMON STOCK (CONTINUED) SHARES VALUE
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INFORMATION & ENTERTAINMENT (continued)
Broadcasting & Media (continued)
Knight Ridder, Inc. ........................................ 100 $ 4,775
McGraw-Hill Cos., Inc. ..................................... 100 10,812
MediaOne Group, Inc.+....................................... 600 33,637
Meredith Corp. ............................................. 100 3,725
New York Times Co., Class A................................. 200 6,863
Omnicom Group, Inc. ........................................ 200 12,800
Time Warner, Inc. .......................................... 1,200 75,000
Times Mirror Co., Series A.................................. 100 5,506
Tribune Co. ................................................ 100 6,394
Viacom, Inc., Class B+...................................... 400 34,000
Entertainment Products -- 0.4%
Brunswick Corp. ............................................ 100 2,469
Eastman Kodak Co. .......................................... 300 19,612
Hasbro, Inc. ............................................... 100 3,719
Mattel, Inc. ............................................... 300 6,806
Rubbermaid, Inc. ........................................... 200 6,450
Toys "R" Us, Inc.+.......................................... 300 4,500
Leisure & Tourism -- 1.7%
AMR Corp.+.................................................. 200 11,750
Darden Restaurants, Inc. ................................... 100 1,875
Delta Air Lines, Inc. ...................................... 100 5,456
Disney (Walt) Co. .......................................... 2,100 69,300
Harrah's Entertainment, Inc.+............................... 100 1,488
Hilton Hotels Corp. ........................................ 300 4,331
Marriott International, Inc., Class A....................... 300 10,537
McDonald's Corp. ........................................... 700 55,169
Mirage Resorts, Inc.+....................................... 200 2,863
Park Place Entertainment Corp. ............................. 300 2,044
Southwest Airlines Co. ..................................... 300 8,063
Tricon Global Restaurants, Inc.+............................ 200 9,512
USAirways Group, Inc.+...................................... 100 4,975
Wendy's International, Inc. ................................ 100 2,381
------------
504,044
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INFORMATION TECHNOLOGY -- 21.5%
Communication Equipment -- 0.8%
3Com Corp.+................................................. 400 18,800
Andrew Corp.+............................................... 100 1,813
Northern Telecom Ltd. ADR................................... 700 44,187
Novell, Inc.+............................................... 400 8,150
Scientific-Atlanta, Inc. ................................... 100 3,113
Tellabs, Inc.+.............................................. 200 17,150
Computers & Business Equipment -- 8.1%
Apple Computer, Inc.+....................................... 100 4,119
Avery Dennison Corp. ....................................... 100 4,944
Cabletron Systems, Inc.+.................................... 200 2,088
Cisco Systems, Inc.+........................................ 1,600 178,500
Compaq Computer Corp. ...................................... 1,700 80,962
Computer Sciences Corp.+.................................... 200 13,713
Data General Corp.+......................................... 100 1,956
Dell Computer Corp.+........................................ 1,300 130,000
EMC Corp.+.................................................. 500 54,437
Gateway 2000, Inc.+......................................... 200 15,450
Harris Corp. ............................................... 100 3,750
Hewlett-Packard Co. ........................................ 1,100 86,212
IKON Office Solutions, Inc. ................................ 100 1,600
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COMMON STOCK (CONTINUED) SHARES VALUE
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INFORMATION TECHNOLOGY (continued)
Computers & Business Equipment (continued)
International Business Machines Corp. ...................... 1,000 $ 183,250
Moore Corp., Ltd............................................ 100 1,156
Pitney Bowes, Inc. ......................................... 300 20,644
Seagate Technology, Inc.+................................... 300 12,206
Silicon Graphics, Inc....................................... 200 4,150
Staples, Inc.+.............................................. 450 12,881
Sun Microsystems, Inc.+..................................... 400 44,700
Unisys Corp.+............................................... 300 9,938
Xerox Corp. ................................................ 300 37,200
Electronics -- 4.0%
Advanced Micro Devices, Inc.+............................... 100 2,294
AMP, Inc. .................................................. 200 10,525
Applied Materials, Inc.+.................................... 400 25,275
Conexant Systems Inc.+...................................... 100 1,819
Emerson Electric Co. ....................................... 500 29,094
Honeywell, Inc. ............................................ 100 6,519
Intel Corp. ................................................ 1,800 253,687
KLA-Tencor Corp.+........................................... 100 5,775
LSI Logic Corp.+............................................ 100 2,787
Micron Technology, Inc.+.................................... 200 15,625
Motorola, Inc. ............................................. 600 43,350
National Semiconductor Corp.+............................... 200 2,587
Tandy Corp. ................................................ 100 5,400
Texas Instruments, Inc. .................................... 400 39,550
Thomas & Betts Corp. ....................................... 100 4,419
Software -- 5.3%
Adobe Systems, Inc. ........................................ 100 4,775
Automatic Data Processing, Inc. ............................ 600 25,537
BMC Software, Inc. ......................................... 200 9,337
Computer Associates International, Inc. .................... 600 30,375
Microsoft Corp.+............................................ 600 455,000
Momentum Business Applications, Inc., Class A+.............. 4 45
Oracle Corp.+............................................... 1,000 55,375
Parametric Technology Corp.+................................ 300 3,919
PeopleSoft, Inc.+........................................... 200 3,963
Telecommunications -- 3.3%
AirTouch Communications, Inc.+.............................. 600 57,937
ALLTEL Corp. ............................................... 300 19,369
Ascend Communications, Inc.+................................ 200 17,463
Comcast Corp., Class A...................................... 400 27,194
Frontier Corp. ............................................. 200 7,225
General Instrument Corp.+................................... 200 7,100
Lucent Technologies, Inc. .................................. 1,400 157,587
Nextel Communications, Inc., Class A+....................... 300 9,600
Tele-Communications, Inc., Series A+........................ 500 34,281
U.S. West, Inc. ............................................ 500 30,844
------------
2,402,701
------------
MATERIALS -- 2.5%
Chemicals -- 1.2%
Air Products & Chemicals, Inc. ............................. 200 6,725
Ashland, Inc. .............................................. 100 4,750
Dow Chemical Co. ........................................... 200 17,612
du Pont (E.I.) de Nemours & Co. ............................ 1,200 61,425
Eastman Chemical Co. ....................................... 100 4,062
Engelhard Corp. ............................................ 200 3,913
</TABLE>
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COMMON STOCK (CONTINUED) SHARES VALUE
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MATERIALS (continued)
Chemicals (continued)
Great Lakes Chemical Corp. ................................. 100 $ 3,788
Hercules, Inc. ............................................. 100 2,694
Morton International, Inc. ................................. 100 2,588
Nalco Chemical Co. ......................................... 100 2,750
Praxair, Inc. .............................................. 200 6,462
Rohm & Haas Co. ............................................ 200 6,200
Sigma-Aldrich Corp. ........................................ 100 2,850
Union Carbide Corp. ........................................ 100 3,956
W.R. Grace & Co.+........................................... 100 1,369
Forest Products -- 0.6%
Bemis Co., Inc. ............................................ 100 3,400
Boise Cascade Corp. ........................................ 100 3,006
Champion International Corp. ............................... 100 3,506
Georgia-Pacific Group....................................... 100 6,450
International Paper Co. .................................... 300 11,869
Louisiana-Pacific Corp. .................................... 100 2,006
Mead Corp. ................................................. 100 2,863
Sealed Air Corp.+........................................... 100 5,306
Temple-Inland, Inc. ........................................ 100 5,706
Union Camp Corp. ........................................... 100 6,169
Westvaco Corp. ............................................. 100 2,206
Weyerhaeuser Co. ........................................... 200 10,825
Willamette Industries, Inc. ................................ 100 3,500
Metals & Minerals -- 0.7%
Alcan Aluminium Ltd. ....................................... 200 5,112
Alcoa, Inc. ................................................ 200 16,725
Allegheny Teldyne, Inc. .................................... 200 4,050
Barrick Gold Corp. ......................................... 400 7,625
Battle Mountain Gold Co. ................................... 200 738
Bethlehem Steel Corp.+...................................... 100 863
Crown, Cork & Seal Co., Inc. ............................... 100 3,169
Cyprus Amax Minerals Co. ................................... 100 956
Freeport-McMoRan Copper & Gold, Inc., Class B............... 200 1,975
Homestake Mining Co. ....................................... 200 1,888
Inco Ltd. .................................................. 200 2,112
Newmont Mining Corp. ....................................... 200 3,537
Nucor Corp. ................................................ 100 4,900
Phelps Dodge Corp. ......................................... 100 4,344
Placer Dome, Inc. .......................................... 300 3,356
PPG Industries, Inc. ....................................... 200 10,750
Reynolds Metals Co. ........................................ 100 4,887
Timken Co................................................... 100 2,169
USX-US Steel Group, Inc. ................................... 100 2,606
Worthington Industries, Inc. ............................... 100 1,388
------------
281,106
------------
UTILITIES -- 9.7%
Electric Utilities -- 1.9%
AES Corp.+.................................................. 200 6,737
Ameren Corp. ............................................... 100 3,925
American Electric Power Co., Inc. .......................... 200 8,762
Baltimore Gas & Electric Co. ............................... 200 5,450
Carolina Power & Light Co. ................................. 200 8,325
Central & South West Corp. ................................. 200 5,288
Cinergy Corp. .............................................. 200 6,263
Consolidated Edison, Inc. .................................. 200 9,887
</TABLE>
- ---------------------
10
<PAGE> 12
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
--------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Electric Utilities (continued)
DTE Energy Co. ............................................. 200 $ 8,100
Duke Energy Corp. .......................................... 400 24,725
Edison International........................................ 400 11,125
Entergy Corp. .............................................. 300 8,831
FirstEnergy Corp. .......................................... 200 6,213
FPL Group, Inc. ............................................ 200 10,975
GPU, Inc. .................................................. 100 4,263
Houston Industries, Inc. ................................... 300 9,112
New Century Energies, Inc. ................................. 100 4,400
Niagara Mohawk Power Corp.+................................. 200 3,063
Northern States Power Co. .................................. 200 5,388
PP&L Resources, Inc. ....................................... 200 5,338
PacifiCorp.................................................. 300 6,169
PECO Energy Co. ............................................ 200 7,637
Public Service Enterprise Group, Inc. ...................... 200 7,937
Southern Co. ............................................... 700 18,856
Texas Utilities Co. ........................................ 300 13,181
Unicom Corp. ............................................... 200 7,125
Gas & Pipeline Utilities -- 0.6%
Columbia Gas Energy Group, Inc. ............................ 100 5,175
Consolidated Natural Gas Co. ............................... 100 5,131
Enron Corp. ................................................ 300 19,800
Pacific Gas & Electric Corp. ............................... 400 12,775
Sempra Energy............................................... 300 6,900
Williams Cos., Inc. ........................................ 400 13,200
Telephone -- 7.2%
Ameritech Corp. ............................................ 1,100 71,638
AT&T Corp. ................................................. 1,900 172,425
Bell Atlantic Corp. ........................................ 1,600 96,000
BellSouth Corp. ............................................ 2,000 89,250
GTE Corp. .................................................. 1,000 67,500
MCI WorldCom, Inc.+......................................... 1,900 151,525
SBC Communications, Inc. ................................... 2,000 108,000
Sprint Corp. ............................................... 400 33,400
Sprint Corp. (PCS Group)+................................... 400 12,750
------------
1,082,544
------------
TOTAL INVESTMENT SECURITIES (cost $9,651,519)............... 10,808,384
------------
</TABLE>
---------------------
11
<PAGE> 13
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 3.1% AMOUNT VALUE
--------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 3.1%
Agreement with State Street Bank & Trust Co., bearing
interest at 4.00%, dated 01/29/99, to be repurchased
02/01/99 in the amount of $352,117 and collateralized by
$350,000 of U.S. Treasury Notes, bearing interest at
5.88%, due 08/31/99 and having an approximate aggregate
value of $360,938
(cost $352,000)........................................... $352,000 $ 352,000
------------
TOTAL INVESTMENTS --
(cost $10,003,519) 99.9% 11,160,384
Other assets less liabilities -- 0.1 7,329
------- ------------
NET ASSETS -- 100.0% $ 11,167,713
======= ============
</TABLE>
-----------------------------
+ Non-income producing securities
* Security represents an investment in an affiliated company
ADR -- American Depository Receipt
See Notes to Financial Statements.
- ---------------------
12
<PAGE> 14
- ---------------------
SUNAMERICA SERIES TRUST
EQUITY INCOME PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK -- 75.4% SHARES VALUE
------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 7.3%
Automotive -- 2.9%
Ford Motor Co. ............................................. 2,500 $ 153,594
Retail -- 4.4%
Intimate Brands, Inc., Class A.............................. 4,500 179,437
Penney (J.C.), Inc. ........................................ 1,400 54,863
-----------
387,894
-----------
CONSUMER STAPLES -- 9.4%
Food, Beverage & Tobacco -- 4.8%
ConAgra, Inc. .............................................. 1,300 42,250
PepsiCo, Inc. .............................................. 1,300 50,781
Philip Morris Cos., Inc. ................................... 2,300 108,100
Sara Lee Corp. ............................................. 2,000 51,000
Household Products -- 4.6%
Colgate-Palmolive Co. ...................................... 900 72,394
Kimberly-Clark Corp. ....................................... 2,000 99,625
Newell Co. ................................................. 1,700 70,656
-----------
494,806
-----------
ENERGY -- 9.5%
Energy Sources -- 9.5%
Atlantic Richfield Co. ..................................... 300 17,213
Bp Amoco Plc................................................ 1,191 96,620
Chevron Corp. .............................................. 1,000 74,750
Conoco, Inc., Class A+...................................... 3,900 77,756
Exxon Corp. ................................................ 1,300 91,569
Mobil Corp. ................................................ 1,100 96,456
Royal Dutch Petroleum Co. .................................. 1,200 48,075
-----------
502,439
-----------
FINANCE -- 14.8%
Banks -- 8.1%
Bank of New York Co., Inc. ................................. 3,100 110,050
BankAmerica Corp. .......................................... 1,000 66,875
First Union Corp. .......................................... 1,400 73,675
Mellon Bank Corp. .......................................... 1,500 100,500
National City Corp. ........................................ 1,100 78,169
Financial Services -- 5.8%
American Express Co. ....................................... 1,100 113,162
Associates First Capital Corp., Class A..................... 1,800 73,012
Federal National Mortgage Association....................... 800 58,300
Household International, Inc. .............................. 1,400 61,513
Insurance -- 0.9%
EXEL Ltd., Class A.......................................... 700 44,669
-----------
779,925
-----------
</TABLE>
---------------------
13
<PAGE> 15
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 9.5%
Drugs -- 7.9%
American Home Products Corp. ............................... 1,400 $ 82,162
Merck & Co., Inc. .......................................... 500 73,375
Pfizer, Inc. ............................................... 600 77,175
Pharmacia & Upjohn, Inc. ................................... 1,400 80,500
Schering-Plough Corp. ...................................... 1,900 103,550
Medical Products -- 1.6%
Johnson & Johnson Co. ...................................... 1,000 85,000
-----------
501,762
-----------
INDUSTRIAL & COMMERCIAL -- 9.5%
Business Services -- 2.9%
Ecolab, Inc. ............................................... 2,600 100,750
ServiceMaster Co. .......................................... 2,900 55,281
Electrical Equipment -- 2.4%
General Electric Co. ....................................... 1,200 125,850
Multi-Industry -- 1.5%
Minnesota Mining & Manufacturing Co. ....................... 1,000 77,625
Transportation -- 2.7%
Knightsbridge Tankers Ltd. ................................. 1,100 22,963
Union Pacific Corp. ........................................ 2,300 118,306
-----------
500,775
-----------
INFORMATION TECHNOLOGY -- 1.4%
Electronics -- 1.4%
Emerson Electric Co. ....................................... 1,300 75,644
-----------
MATERIALS -- 2.1%
Chemicals -- 2.1%
du Pont (E.I.) de Nemours & Co. ............................ 1,600 81,900
Lyondell Petrochemical Co. ................................. 1,800 26,887
-----------
108,787
-----------
REAL ESTATE -- 5.7%
Real Estate Investment Trusts -- 5.7%
Crescent Real Estate Equities Co. .......................... 1,800 38,137
Healthcare Realty Trust..................................... 2,300 52,325
Manufactured Home Communities, Inc. ........................ 2,900 68,694
Meditrust Co. .............................................. 1,800 28,238
Simon Property Group, Inc. ................................. 2,400 63,150
Weeks Corp. ................................................ 1,900 52,250
-----------
302,794
-----------
UTILITIES -- 6.2%
Electric Utilities -- 4.2%
Cinergy Corp. .............................................. 1,800 56,362
FPL Group, Inc. ............................................ 800 43,900
Houston Industries, Inc. ................................... 900 27,338
Texas Utilities Co. ........................................ 2,100 92,269
Gas & Pipeline Utilities -- 1.1%
Enron Corp. ................................................ 900 59,400
</TABLE>
- ---------------------
14
<PAGE> 16
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Telephone -- 0.9%
Sprint Corp. ............................................... 600 $ 50,100
-----------
329,369
-----------
TOTAL COMMON STOCK (cost $3,892,542)........................ 3,984,195
-----------
PREFERRED STOCK -- 6.1%
------------------------------------------------------------------------------------
FINANCE -- 0.9%
Insurance -- 0.9%
Aetna, Inc., Class C 6.25%.................................. 600 48,075
HEALTHCARE -- 0.9%
Drugs -- 0.9%
Monsanto Co. 6.50%.......................................... 1,000 48,875
INDUSTRIAL & COMMERCIAL -- 1.0%
Transportation -- 1.0%
Union Pacific Capital Trust 6.25%........................... 1,000 49,750
UTILITIES -- 1.8%
Electric Utilities -- 1.8%
Houston Industries, Inc. 7.00%.............................. 900 95,737
INFORMATION TECHNOLOGY -- 1.5%
Telecommunications -- 1.5%
AirTouch Communications, Inc., Series C 4.25%............... 600 80,550
-----------
TOTAL PREFERRED STOCK (cost $266,214)....................... 322,987
-----------
PRINCIPAL
BONDS & NOTES -- 6.6% AMOUNT
------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 1.4%
Retail -- 1.4%
Rite Aid Corp. 5.25% 2002................................... $50,000 73,750
-----------
HEALTHCARE -- 5.2%
Drugs -- 2.4%
Athena Neurosciences, Inc. 4.75% 2004....................... 75,000 86,625
Centocor, Inc. 4.75% 2005................................... 40,000 41,850
Health Services -- 2.8%
Columbia Healthcare Corp. 6.75% 2006........................ 75,000 65,250
Healthsouth Corp. 3.25% 2003................................ 50,000 42,250
Tenet Healthcare Corp. 6.00% 2005........................... 50,000 42,125
-----------
278,100
-----------
TOTAL BONDS & NOTES (cost $357,561)......................... 351,850
-----------
TOTAL INVESTMENT SECURITIES (cost $4,516,317)............... 4,659,032
-----------
</TABLE>
---------------------
15
<PAGE> 17
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 16.0% AMOUNT VALUE
------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 16.0%
Agreement with State Street Bank & Trust Co., bearing
interest at 4.00%, dated 01/29/99 to be repurchased
02/01/99 in the amount of $846,282 and collateralized by
$615,000 of U.S. Treasury Bonds, bearing interest at
8.750%, due 05/15/17 and having an approximate aggregate
value of $866,767
(cost $846,000)........................................... $846,000 $ 846,000
-----------
TOTAL INVESTMENTS --
(cost $5,362,317) 104.1% 5,505,032
Liabilities in excess of other assets -- (4.1) (217,874)
------- -----------
NET ASSETS -- 100.0% $5,287,158
======= ===========
</TABLE>
-----------------------------
+ Non-income producing securities
See Notes to Financial Statements.
- ---------------------
16
<PAGE> 18
- ---------------------
SUNAMERICA SERIES TRUST
SMALL COMPANY VALUE
PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK -- 90.8% SHARES VALUE
-------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 7.5%
Apparel & Textiles -- 0.9%
Ashworth, Inc. ............................................. 4,700 $ 25,262
Sport-Haley, Inc.+.......................................... 2,400 21,000
Housing -- 3.3%
Global-Tech Appliances, Inc.+............................... 2,900 14,500
Quaker Fabric Corp.+........................................ 5,700 24,403
Shelby Williams Industries, Inc. ........................... 2,200 29,150
Stanley Furniture Co., Inc.+................................ 2,700 59,400
Thomas Industries, Inc. .................................... 2,100 38,588
Retail -- 3.3%
Huffy Corp. ................................................ 3,400 49,300
Piercing Pagoda, Inc.+...................................... 2,600 25,350
Topps Co., Inc. ............................................ 9,700 47,287
Video Update, Inc., Class A+................................ 7,100 11,094
Whitehall Jewellers, Inc.+.................................. 2,000 33,000
-----------
378,334
-----------
CONSUMER STAPLES -- 3.3%
Food, Beverage & Tobacco -- 3.3%
Michael Foods, Inc. ........................................ 2,000 44,750
Performance Food Group Co.+................................. 2,000 58,875
Suiza Foods Corp.+.......................................... 1,700 60,456
-----------
164,081
-----------
ENERGY -- 1.5%
Energy Services -- 1.0%
Atwood Oceanics, Inc.+...................................... 400 7,950
Newpark Resources, Inc.+.................................... 8,200 42,025
Energy Sources -- 0.5%
Basin Exploration, Inc.+.................................... 2,000 23,500
-----------
73,475
-----------
FINANCE -- 16.8%
Banks -- 6.2%
Astoria Financial Corp. .................................... 600 27,450
Community First Bank........................................ 700 13,606
First Republic Bank+........................................ 2,100 51,188
T R Financial Corp. ........................................ 2,500 94,531
UST Corp. .................................................. 2,100 48,431
Webster Financial Corp. .................................... 2,600 77,675
Financial Services -- 1.0%
American Bank Note Holographics, Inc.+...................... 2,000 3,625
Franchise Mortgage Acceptance Co.+.......................... 7,000 45,719
Insurance -- 9.6%
ARM Financial Group, Inc. .................................. 3,600 66,375
Delphi Financial Group, Inc. ............................... 1,700 85,212
Enhance Financial Services Group, Inc. ..................... 4,300 107,500
</TABLE>
---------------------
17
<PAGE> 19
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance (continued)
Farm Family Holdings, Inc.+................................. 1,500 $ 48,750
LaSalle Re Holdings Ltd. ................................... 2,300 42,550
Penn Treaty American Corp.+................................. 3,200 75,600
Philadelphia Consolidated Holding Corp.+.................... 2,400 57,825
-----------
846,037
-----------
HEALTHCARE -- 7.6%
Drugs -- 1.0%
PAREXAL International Corp.+................................ 1,900 49,400
Health Services -- 0.3%
Diagnostic Health Services, Inc.+........................... 6,300 17,128
Medical Products -- 6.3%
Cholestech Corp.+........................................... 4,300 13,438
Cooper Companies, Inc.+..................................... 4,700 70,500
Lifecore Biomedical, Inc.+.................................. 5,300 55,650
Mentor Corp. ............................................... 3,900 71,662
PolyMedica Corp.+........................................... 3,900 34,125
Respironics, Inc.+.......................................... 1,900 29,213
Spacelabs, Inc.+............................................ 1,900 41,325
-----------
382,441
-----------
INDUSTRIAL & COMMERCIAL -- 22.1%
Aerospace & Military Technology -- 1.0%
Alliant Techsystems, Inc.+.................................. 600 52,650
Business Services -- 10.2%
Alternative Resources Corp.+................................ 6,500 83,687
Applied Graphics Technologies, Inc.+........................ 3,800 54,625
Aqua Alliance, Inc., Class A+............................... 16,000 28,000
Borg-Warner Security Corp.+................................. 6,900 136,275
Budget Group, Inc., Class A+................................ 2,300 32,919
Fingerhut Cos., Inc......................................... 5,000 105,000
Simpson Manufacturing Co., Inc.+............................ 900 34,369
Staff Leasing, Inc.+........................................ 3,200 38,800
Electrical Equipment -- 2.6%
AFC Cable Systems, Inc.+.................................... 3,700 130,425
Machinery -- 5.8%
Bonded Motors, Inc.+........................................ 1,500 5,437
Bridgeport Machines, Inc.+.................................. 2,800 17,500
Brown & Sharpe Manufacturing Co.+........................... 4,500 34,875
Dura Automotive Systems, Inc.+.............................. 2,400 77,100
Edelbrock Corp.+............................................ 1,700 24,650
Excel Industries, Inc. ..................................... 1,700 41,544
MagneTek, Inc.+............................................. 4,190 48,709
Park-Ohio Holdings Corp.+................................... 1,500 24,750
Walbro Corp.+............................................... 2,000 17,250
Multi-Industry -- 0.9%
Tredegar Industries, Inc. .................................. 1,600 42,900
Transportation -- 1.6%
Nordic American Tanker Shipping Ltd. ....................... 3,200 34,400
Willis Lease Finance Corp.+................................. 2,700 45,900
-----------
1,111,765
-----------
</TABLE>
- ---------------------
18
<PAGE> 20
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 3.3%
Broadcasting & Media -- 1.6%
Merrill Corp. .............................................. 5,000 $ 80,625
Leisure & Tourism -- 1.7%
Buffets, Inc.+.............................................. 4,200 38,063
Landry's Seafood Restaurants, Inc.+......................... 6,500 46,312
-----------
165,000
-----------
INFORMATION TECHNOLOGY -- 18.3%
Computers & Business Equipment -- 2.6%
BancTec, Inc.+.............................................. 2,700 35,100
Pomeroy Computer Resources, Inc.+........................... 1,900 40,375
Vanstar Corp.+.............................................. 6,600 54,038
Electronics -- 5.7%
FEI Co.+.................................................... 3,800 41,800
Innovex, Inc. .............................................. 3,300 63,113
Moog, Inc., Class A+........................................ 3,300 123,337
Pioneer Standard Electrics, Inc. ........................... 2,700 24,131
Unitrode Corp.+............................................. 2,300 36,800
Software -- 6.8%
Brightstar Information Technology Group, Inc.+.............. 3,600 35,100
Inprise Corp. .............................................. 8,500 43,562
RadiSys Corp.+.............................................. 2,800 84,700
Sapiens International Corp. NV+............................. 3,600 31,950
Sybase, Inc.+............................................... 6,500 66,219
System Software Associates, Inc.+........................... 14,900 78,225
Telecommunications -- 3.2%
Comdial Corp.+.............................................. 2,900 21,025
Mosaix, Inc.+............................................... 6,800 63,750
Network Equipment Technologies, Inc.+....................... 4,500 42,469
Norstan, Inc.+.............................................. 2,800 34,650
-----------
920,344
-----------
MATERIALS -- 3.3%
Chemicals -- 0.6%
BOLDER Technologies Corp.+.................................. 1,500 20,836
CPAC, Inc. ................................................. 2,300 10,925
Metals & Minerals -- 2.7%
Dayton Superior Corp., Class A+............................. 2,000 38,875
FiberMark, Inc. ............................................ 1,500 18,000
L.B. Foster Co. ............................................ 3,300 17,738
Northwest Pipe Co.+......................................... 1,500 25,312
Synthetic Industries, Inc.+................................. 1,900 33,962
-----------
165,648
-----------
REAL ESTATE -- 4.3%
Real Estate Investment Trusts -- 4.3%
Chelsea GCA Realty, Inc. ................................... 1,500 49,031
Highwoods Properties, Inc. ................................. 1,300 31,363
Lexington Corporate Properties Trust........................ 2,900 34,981
Shurgard Storage Centers, Inc., Class A..................... 2,600 66,138
Walden Residential Properties, Inc. ........................ 1,800 35,775
-----------
217,288
-----------
</TABLE>
---------------------
19
<PAGE> 21
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 2.8%
Electric Utilities -- 2.8%
El Paso Electric Co.+....................................... 4,100 $ 33,313
TNP Enterprises, Inc. ...................................... 1,200 42,675
UniSource Energy Corp.+..................................... 5,400 61,762
-----------
137,750
-----------
TOTAL INVESTMENT SECURITIES (cost $4,563,251)............... 4,562,163
-----------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 7.5% AMOUNT
-------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 7.5%
Agreement with State Street Bank & Trust Co., bearing
interest at 4.00%, dated 01/29/99, to be repurchased
02/01/99 in the amount of $375,125 and collateralized by
$310,000 of U.S. Treasury Bonds, bearing interest at
6.875%, due 08/15/25 and having an approximate aggregate
value of $385,159
(cost $375,000)........................................... $375,000 375,000
-----------
TOTAL INVESTMENTS --
(cost $4,938,251) 98.3% 4,937,163
Other assets less liabilities -- 1.7 86,873
------ -----------
NET ASSETS -- 100.0% $ 5,024,036
====== ===========
</TABLE>
-----------------------------
+ Non-income producing securities
See Notes to Financial Statements.
- ---------------------
20
<PAGE> 22
- ---------------------
SUNAMERICA SERIES TRUST--FIRST AMERICAN ASSET MANAGEMENT PORTFOLIOS
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1999
<TABLE>
<CAPTION>
EQUITY EQUITY SMALL
INDEX INCOME COMPANY VALUE
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*............................ $10,808,384 $4,659,032 $4,562,163
Repurchase agreements (cost equals market).................. 352,000 846,000 375,000
Cash........................................................ 781 479 922
Receivables for--
Dividends and accrued interest............................ 9,324 17,258 2,587
Sales of investments...................................... -- -- 102,555
Due from Adviser............................................ 14,867 14,604 14,044
------------------------------------------------
11,185,356 5,537,373 5,057,271
------------------------------------------------
LIABILITIES:
Payables for--
Management fees........................................... 3,694 2,900 4,359
Purchases of investments.................................. -- 233,858 15,511
Other accrued expenses...................................... 13,949 13,457 13,365
------------------------------------------------
17,643 250,215 33,235
------------------------------------------------
NET ASSETS.................................................. $11,167,713 $5,287,158 $5,024,036
================================================
Shares of beneficial interest outstanding (unlimited shares
authorized)............................................... 1,001,398 501,433 500,959
Net asset value per share................................... $ 11.15 $ 10.54 $ 10.03
================================================
COMPOSITION OF NET ASSETS:
Capital paid in............................................. $10,008,771 $5,008,771 $5,003,771
Accumulated undistributed net investment income............. 2,074 4,309 --
Accumulated undistributed net realized gain on
investments............................................... 3 131,363 21,353
Unrealized appreciation (depreciation) on investments....... 1,156,865 142,715 (1,088)
------------------------------------------------
$11,167,713 $5,287,158 $5,024,036
================================================
---------------
* Cost
Investment securities...................................... $ 9,651,519 $4,516,317 $4,563,251
================================================
</TABLE>
See Notes to Financial Statements
---------------------
21
<PAGE> 23
- ---------------------
SUNAMERICA SERIES TRUST--FIRST AMERICAN ASSET MANAGEMENT PORTFOLIOS
STATEMENT OF OPERATIONS
FOR THE PERIOD DECEMBER 14, 1998 THROUGH JANUARY 31, 1999
<TABLE>
<CAPTION>
EQUITY EQUITY SMALL
INDEX# INCOME# COMPANY VALUE#
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCOME:
Interest.................................................. $ 5,273 $ 7,049 $ 6,499
Dividends................................................. 13,496 12,675 3,916
--------------------------------------------
Total income*......................................... 18,769 19,724 10,415
--------------------------------------------
EXPENSES:
Custodian fees............................................ 6,144 5,651 5,520
Management fees........................................... 5,763 4,546 6,831
Auditing fees............................................. 5,685 5,685 5,685
Reports to investors...................................... 1,010 1,010 1,010
Organizational expenses................................... 6,229 6,229 6,229
Legal fees................................................ 735 735 735
Trustees' fees............................................ 147 147 147
Other expenses............................................ 245 245 245
--------------------------------------------
Total expenses before reimbursement and custody
credits................................................ 25,958 24,248 26,402
Expenses reimbursed by the investment adviser........... (18,015) (17,588) (16,709)
Custody credits earned on cash balances................. (19) (16) (130)
--------------------------------------------
Net investment income....................................... 10,845 13,080 852
--------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments.......................... 3 131,363 24,272
Change in unrealized appreciation/depreciation on
investments............................................. 1,156,865 142,715 (1,088)
--------------------------------------------
Net realized and unrealized gain on investments............. 1,156,868 274,078 23,184
--------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $1,167,713 $287,158 $ 24,036
============================================
---------------
* Net of foreign withholding taxes on interest and dividends
of........................................................ $ 2 $ -- $ 154
============================================
# Commenced operations December 14, 1998
</TABLE>
See Notes to Financial Statements
- ---------------------
22
<PAGE> 24
- ---------------------
SUNAMERICA SERIES TRUST--FIRST AMERICAN ASSET MANAGEMENT PORTFOLIOS
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD DECEMBER 14, 1998 THROUGH JANUARY 31, 1999
<TABLE>
<CAPTION>
EQUITY EQUITY SMALL
INDEX# INCOME# COMPANY VALUE#
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income....................................... $ 10,845 $ 13,080 $ 852
Net realized gain on investments............................ 3 131,363 24,272
Change in unrealized appreciation/depreciation on
investments............................................... 1,156,865 142,715 (1,088)
------------------------------------------------
Net increase in net assets resulting from operations........ 1,167,713 287,158 24,036
------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income...................... (15,000) (15,000) (10,000)
Distribution from net realized gain on investments........ -- -- --
------------------------------------------------
Total dividends and distributions to shareholders........... (15,000) (15,000) (10,000)
------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold................................... 10,000,000 5,000,000 5,000,000
Proceeds from shares issued for reinvestment of dividends
and distributions......................................... 15,000 15,000 10,000
Cost of shares repurchased.................................. -- -- --
------------------------------------------------
Increase in net assets resulting from capital share
transactions.............................................. 10,015,000 5,015,000 5,010,000
------------------------------------------------
TOTAL INCREASE IN NET ASSETS................................ 11,167,713 5,287,158 5,024,036
NET ASSETS:
Beginning of period......................................... -- -- --
------------------------------------------------
End of period............................................... $ 11,167,713 $5,287,158 $5,024,036
================================================
---------------
Undistributed net investment loss........................... $ 2,074 $ 4,309 $ --
================================================
Shares issued and repurchased:
Sold........................................................ 1,000,000 500,000 500,000
Issued in reinvestment of dividends and distributions....... 1,398 1,433 959
Repurchased................................................. -- -- --
------------------------------------------------
Net increase................................................ 1,001,398 501,433 500,959
================================================
# Commenced operations December 14, 1998
</TABLE>
See Notes to Financial Statements
---------------------
23
<PAGE> 25
- ---------------------
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 separate series of shares ("the Portfolios"), each of which
represents a separate managed portfolio of securities with its own investment
objectives. This report does not include all of the portfolios of the SunAmerica
Series Trust. It includes only those portfolios that are available as part of
the annuity contract in which you have invested. 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 the portfolios included in this report are as
follows:
The EQUITY INDEX PORTFOLIO seeks investment results that correspond to the
performance of the Standard & Poor's 500 Composite Stock Price Index (S&P 500)
by investing primarily in common stocks included in the S&P 500.
The EQUITY INCOME PORTFOLIO seeks long-term capital appreciation and income by
investing primarily in equity securities that are expected to pay above-average
dividends.
The SMALL COMPANY VALUE PORTFOLIO seeks capital appreciation by investing in a
broadly diversified portfolio of equity securities of small companies.
2. SIGNIFICANT ACCOUNTING POLICIES: The preparation of financial statements in
accordance with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from these estimates.
In the opinion of management of the Trust, the accompanying financial statements
contain all normal and recurring adjustments necessary for the fair presentation
of the financial position of the Trust, 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
- ---------------------
24
<PAGE> 26
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 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 to all the portfolios
comprising the Sun America Series Trust 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 period December 14, 1998 through January 31, 1999, 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>
Equity Index............................................. $6,229 $ -- $(6,229)
Equity Income............................................ 6,229 -- (6,229)
Small Company Value...................................... 9,148 (2,919) (6,229)
</TABLE>
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.
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 January 31, 1999, were as follows:
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE
UNREALIZED UNREALIZED GAIN/(LOSS) COST OF
GAIN LOSS NET INVESTMENTS
---------------------------------------------------
<S> <C> <C> <C> <C>
Equity Index................................................ $1,330,917 $174,052 $1,156,865 $10,003,519
Equity Income............................................... 299,427 156,712 142,715 5,362,317
Small Company Value......................................... 306,362 307,450 (1,088) 4,938,251
</TABLE>
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, pursuant to Subadvisory Agreements
described below, the subadviser, 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;
---------------------
25
<PAGE> 27
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. 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
FEES
PORTFOLIO (% OF ASSETS)
- ------------------- -------------
<S> <C>
Equity Index 0.40%
Equity Income 0.65%
Small Company Value 1.00%
</TABLE>
First American Asset Management (FAAM) acts as the subadviser to the
portfolios pursuant to Subadvisory Agreements with SAAMCo. Under the Subadvisory
Agreements, FAAM manages the investment and reinvestment of the assets of the
Portfolios. FAAM 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.
The subadvisory fees which are paid to FAAM by SAAMCO are as follows:
<TABLE>
<CAPTION>
SUBADVISORY
FEES
PORTFOLIO (% OF ASSETS)
- ------------------- -------------
<S> <C>
Equity Index 0.125%
Equity Income 0.30%
Small Company Value 0.80%
</TABLE>
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: Equity Index, Equity Income and
Small Company Value. 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, 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.
At January 31, 1999, 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>
Equity Index................................................ -- $18,015
Equity Income............................................... -- 17,588
Small Company Value......................................... -- 16,709
</TABLE>
6. PURCHASES AND SALES OF SECURITIES: Information with respect to purchases and
sales of long-term securities for the period December 14, 1998 through January
31, 1999, was as follows:
<TABLE>
<CAPTION>
SMALL
EQUITY INDEX EQUITY INCOME COMPANY VALUE
----------------------------------------------
<S> <C> <C> <C>
Purchases of portfolio securities (excluding U.S. government
securities)............................................... $9,537,237 $5,047,917 $4,823,265
Sales of portfolio securities (excluding U.S. government
securities)............................................... 58 663,296 284,286
Purchases of U.S. government securities..................... 114,297 -- --
Sales of U.S. government securities......................... -- -- --
</TABLE>
- ---------------------
26
<PAGE> 28
- ---------------------
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 ON MENT
ENDED OF PERIOD INCOME** INVESTMENTS OPERATIONS
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Equity Index Portfolio
12/14/98-
1/31/99 $10.00 $0.01 $1.17 $1.18
Equity Income Portfolio
12/14/98-
1/31/99 10.00 0.03 0.54 0.57
Small Company Value Portfolio
12/14/98-
1/31/99 10.00 -- 0.05 0.05
<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>
Equity Index Portfolio
12/14/98-
1/31/99 $ (0.03) $ -- $11.15 11.81% $11,168
Equity Income Portfolio
12/14/98-
1/31/99 (0.03) -- 10.54 5.70 5,287
Small Company Value Portfolio
12/14/98-
1/31/99 (0.02) -- 10.03 0.49 5,024
<CAPTION>
RATIO OF
EXPENSES TO
PERIOD AVERAGE NET
ENDED ASSETS
- -------------------------------------------------- ---------------
<S> <C>
Equity Index Portfolio
12/14/98-
1/31/99 0.55%+++
Equity Income Portfolio
12/14/98-
1/31/99 0.95+++
Small Company Value Portfolio
12/14/98-
1/31/99 1.40+++
<CAPTION>
RATIO OF NET
INVESTMENT
INCOME TO
PERIOD AVERAGE NET PORTFOLIO
ENDED ASSETS TURNOVER
- -------------------------------------------------- ----------------------------
<S> <C> <C>
Equity Index Portfolio
12/14/98-
1/31/99 0.75%+++ 0%
Equity Income Portfolio
12/14/98-
1/31/99 1.87+++ 14%
Small Company Value Portfolio
12/14/98-
1/31/99 0.12+++ 6%
</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, including custody credits, 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>
NET
INVESTMENT
EXPENSES INCOME (LOSS)
1999 1999
-------- -------------
<S> <C> <C>
Equity Index Portfolio...................................... 1.80% (0.50)%
Equity Income Portfolio..................................... 3.47 (0.65)
Small Company Value Portfolio............................... 3.87 (2.35)
</TABLE>
---------------------
27
<PAGE> 29
- ---------------------
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 Equity Index Portfolio, Equity
Income Portfolio and Small Company Value Portfolio (constituting three
portfolios of the SunAmerica Series Trust, hereafter referred to as the "Fund")
at January 31, 1999, and the results of each of their operations, the changes in
each of their net assets and the financial highlights for the period December
14, 1998, commencement of operations, through January 31,1999, 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 audit. We conducted our audit
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
audit, which included confirmation of securities at January 31, 1999 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
March 19, 1999
- ---------------------
28
<PAGE> 30
- ---------------------
SHAREHOLDERS TAX INFORMATION (UNAUDITED)
Certain tax information required to be provided to the shareholders based upon
each Portfolio's income and distributions for the period December 1, 1998
through January 31, 1999.
During the period December 1, 1998 through January 31, 1999, the Portfolio's
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>
Equity Index Portfolio....................... $0.03 $0.03 -- $ -- $ --%
Equity Income Portfolio...................... 0.03 0.03 -- -- --
Small Company Value.......................... 0.02 0.02 -- -- --
</TABLE>
---------------------
29
<PAGE> 31
- ---------------------
SUNAMERICA SERIES TRUST
SHAREHOLDER INFORMATION (UNAUDITED)
SUPPLEMENTAL PROXY INFORMATION: A Special Meeting of the Shareholders of the
SunAmerica Series Trust Portfolio's was held on December 30, 1998. Each of the
applicable Portfolio voted in favor of adopting the following proposals,
therefore, the results are aggregated for the Portfolio unless otherwise
specified.
1. To elect a slate of four members to the Board of Trustees to hold office
until their successors are duly elected and qualified.
<TABLE>
<CAPTION>
VOTES IN VOTES
FAVOR OF ABSTAINED
-------- ---------
<S> <C> <C>
James K. Hunt............................................... 440,055,253 8,968,260
Monica C. Lozano............................................ 440,055,253 8,968,260
Allan L. Sher............................................... 440,055,253 8,968,260
William M. Wardlaw.......................................... 440,055,253 8,968,260
</TABLE>
2. To ratify the selection of independent accountants.
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
-------- ------- ---------
<S> <C> <C>
423,683,198 5,639,596 19,700,675
</TABLE>
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---------------------
[LOGO] SUNAMERICA
1 SunAmerica Center BULK RATE
Los Angeles, California 90067-6022
U.S. POSTAGE
PAID
TOWNE, INC.
---------------------
THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE PURCHASERS UNLESS
ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
A-1411-PP (3/99)
