<PAGE> 1
SUNAMERICA SERIES TRUST
------------------------------------
ANNUAL REPORT
JANUARY 31, 1999
[POLARIS LOGO] [ANCHOR ADVISOR 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
- ---------------------
DEAR INVESTOR:
We are pleased to present our annual report for 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.
This report covering the two-month period from December 1, 1998,
to January 31, 1999, results from a change in the fiscal year-end
of the trust, which is now January 31. This
change -- necessitating the issuance of a new annual report -- was
made in order to reduce trust costs and to facilitate timely
reporting to our shareholders.
This report also marks the first inclusion of MFS Investment
Management(R) (MFS) as a manager within the trust. As the first
mutual fund organization, MFS has investment experience dating
from 1924 and we are pleased to welcome the firm to the SunAmerica
Series Trust.
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. A discussion of
how your investment options performed in this environment is
included for each Portfolio beginning on page 146.
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
First SunAmerica Life Insurance Company
March 17, 1999
-----------------------------------------------
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
CASH MANAGEMENT PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 97.0% AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
CERTIFICATES OF DEPOSIT -- 3.6%
Societe Generale 5.76% due 4/16/99.......................... $ 5,000,000 $ 5,006,749
Toronto Dominion 5.52% due 8/13/99(1)....................... 5,000,000 5,013,574
-------------
TOTAL CERTIFICATES OF DEPOSIT (cost $9,997,865)............. 10,020,323
-------------
COMMERCIAL PAPER -- 61.4%
Apreco, Inc. 5.07% due 4/15/99.............................. 5,000,000 4,951,739
Asset Portfolio Funding 5.05% due 4/23/99................... 5,000,000 4,946,000
Atlantis One Funding Corp. 4.81% due 5/13/99................ 5,000,000 4,932,947
Atlantis One Funding Corp. 4.85% due 2/01/99................ 5,000,000 5,000,000
Banco Itau SA 4.95% due 3/16/99............................. 5,000,000 4,970,438
Banco Itau SA 5.20% due 3/16/99............................. 5,000,000 4,968,944
Bancomer SA 5.05% due 4/09/99............................... 5,000,000 4,955,706
Barton Capital Corp. 5.28% due 2/18/99...................... 3,000,000 2,992,520
Bavaria Global Corp. 5.08% due 3/22/99...................... 6,000,000 5,958,513
British Gas Capital, Inc. 5.00% due 4/12/99................. 5,000,000 4,953,528
Chase Manhattan Corp. 5.02% due 3/30/99..................... 5,000,000 4,960,258
Coca Cola Co. 4.83% due 2/16/99............................. 5,000,000 4,989,938
Dairy Investments Ltd. 5.00% due 4/05/99.................... 5,000,000 4,958,175
Deutsche Bank Financial 4.87% due 2/04/99................... 10,000,000 9,995,942
Du Pont (E.I.) De Nemours & Co. 4.83% due 2/09/99........... 5,000,000 4,994,633
Edison Asset Securitization 4.85% due 2/04/99............... 5,000,000 4,997,979
Edison Asset Securitization 5.00% due 4/09/99............... 4,905,000 4,861,182
Four Winds Funding Corp. 5.07% due 3/19/99.................. 5,000,000 4,967,608
Giro Funding 4.80% due 7/12/99.............................. 4,561,000 4,465,538
Goldman Sachs Group L.P. 5.10% due 3/19/99.................. 8,000,000 7,947,867
Montauk Funding Corp. 4.82% due 4/14/99..................... 5,000,000 4,952,200
Motorola, Inc. 4.84% due 2/03/99............................ 10,000,000 9,997,311
New York Life Capital Corp. 4.94% due 4/23/99............... 5,000,000 4,946,563
Park Avenue Recreation Corp. 5.05% due 4/14/99.............. 5,000,000 4,997,987
Pfizer, Inc. 4.76% due 3/17/99.............................. 5,000,000 4,970,911
Sigma Finance, Inc. 4.84% due 10/08/99...................... 5,000,000 4,840,571
Sigma Finance, Inc. 5.03% due 4/07/99....................... 5,000,000 4,957,118
Southland Corp. 4.76% due 5/07/99........................... 5,000,000 4,937,590
Southland Corp. 4.81% due 5/07/99........................... 5,000,000 4,937,591
Transamerica Finance Corp. 4.90% due 3/26/99................ 5,000,000 4,963,931
Vulcan Materials Co. 4.87% due 2/09/99...................... 10,000,000 9,989,178
-------------
TOTAL COMMERCIAL PAPER (cost $170,180,034).................. 170,260,406
-------------
CORPORATE SHORT-TERM NOTES -- 23.8%
Allied Signal, Inc. 9.12% due 3/08/99....................... 1,000,000 1,003,328
Bankers Trust Co. 5.57% due 5/14/99(1)...................... 5,000,000 5,000,000
Bankers Trust Co. 5.58% due 2/19/99(1)...................... 3,000,000 2,999,900
Banque National De Paris New York 5.71% due 3/30/99......... 2,000,000 1,999,880
Caterpillar Financial Services 6.16% due 11/01/99........... 5,270,000 5,305,169
Citicorp 5.48% due 9/17/99(1)............................... 5,000,000 5,000,000
FCC National Bank 5.55% due 6/01/99(1)...................... 2,000,000 1,998,620
Ford Motor Credit 7.47% due 7/29/99......................... 2,000,000 2,023,625
Goldman Sachs Group L.P. 5.06% due 1/26/00(1)............... 2,000,000 2,000,000
Goldman Sachs Group L.P. 5.03% due 2/14/00(1)............... 2,000,000 2,000,000
</TABLE>
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2
<PAGE> 4
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES (CONTINUED) AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES (continued)
IBM Credit Corp. 5.61% due 7/30/99.......................... $ 5,000,000 $ 5,013,358
KeyBank N A 5.69% due 7/30/99(1)............................ 5,000,000 5,001,000
Liberty Lighthouse United States Capital Co. 5.48% due
9/17/99(1)................................................ 2,000,000 1,999,380
Liberty Lighthouse United States Capital Co. 5.63% due
9/15/99(1)................................................ 5,000,000 4,998,450
Merrill Lynch & Co., Inc. 5.53% due 9/23/99(1).............. 5,000,000 5,000,000
Merrill Lynch & Co., Inc. 5.75% due 11/22/99(1)............. 3,000,000 2,973,000
Portland General Electric Co. 6.63% due 8/31/99............. 3,000,000 3,022,500
Sanwa Business Credit Corp. 5.64% due 5/20/99(1)............ 5,000,000 5,008,248
Virginia Electric & Power Co. 9.30% due 6/09/99............. 3,500,000 3,548,125
-------------
TOTAL CORPORATE SHORT-TERM NOTES (cost $65,883,371)......... 65,894,583
-------------
FEDERAL AGENCY OBLIGATIONS -- 2.3%
Federal Home Loan Banks 4.11% due 2/26/99(1)................ 1,000,000 998,951
Federal Home Loan Mortgage Discount Notes 4.93% due
3/26/99................................................... 5,000,000 4,963,710
Federal National Mortgage Association 5.06% due
9/24/99(1)................................................ 500,000 484,885
-------------
TOTAL FEDERAL AGENCY OBLIGATIONS (cost $6,459,700).......... 6,447,546
-------------
MUNICIPAL BONDS -- 5.9%
Illinois Student Assistance Corp. 5.41% 2/03/99(1).......... 4,000,000 4,000,000
Illinois Student Assistance Corp. 5.47% 2/03/99(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 4.87% 2/03/99(1)............... 4,445,000 4,445,000
-------------
TOTAL MUNICIPAL BONDS (cost $16,445,000).................... 16,445,000
-------------
TOTAL SHORT-TERM SECURITIES (cost $268,965,970)............. 269,067,858
-------------
REPURCHASE AGREEMENT -- 2.8%
-----------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 2.8%
Joint Repurchase Agreement Account (Note 3) (cost
$7,695,000)............................................... 7,695,000 7,695,000
-------------
TOTAL INVESTMENTS --
(cost $276,660,970) 99.8% 276,762,858
Other assets less liabilities -- 0.2 606,684
------ -------------
NET ASSETS -- 100.0% $ 277,369,542
====== =============
</TABLE>
-----------------------------
(1) Variable rate security; date shown reflects next reset date;
rate as of January 31, 1999.
See Notes to Financial Statements
---------------------
3
<PAGE> 5
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SUNAMERICA SERIES TRUST
GLOBAL BOND PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(DENOMINATED IN
FOREIGN BONDS & NOTES -- 67.3% LOCAL CURRENCY) VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AUSTRALIA -- 2.5%
Australian Government 6.75% 2006............................ 4,300,000 $ 3,023,371
-------------
CANADA -- 3.6%
Government of Canada 6.00% 2008............................. 3,500,000 2,511,410
Ontario Hydro 6.10% 2008.................................... USD 1,800,000 1,877,040
-------------
4,388,450
-------------
DENMARK -- 4.8%
Kingdom of Denmark 8.00% 2003............................... 33,000,000 5,908,211
-------------
FRANCE -- 6.4%
Government of France 4.50% 2003............................. 4,700,000 5,624,457
Government of France 5.50% 2007............................. 1,067,143 1,376,233
Government of France 8.50% 2023............................. 457,347 824,684
-------------
7,825,374
-------------
GERMANY -- 13.1%
Baden-Wuerttemberg 5.38% 2010............................... 3,800,000 2,418,629
Bayerische Landesbank Girozentrale 6.63% 2007............... USD 3,000,000 3,184,680
KFW International Finance, Inc. 5.75% 2008.................. USD 900,000 927,000
Kreditanstalt Fuer Wiederaufbau 5.00% 2009.................. 1,022,583 1,272,342
Republic of Germany 6.00% 2007.............................. 4,187,263 5,524,306
Republic of Germany 6.25% 2024.............................. 1,891,779 2,692,400
-------------
16,019,357
-------------
ITALY -- 8.5%
Republic of Italy 5.13% 2003................................ JPY 170,000,000 1,710,242
Republic of Italy 6.75% 2007................................ 2,065,824 2,834,898
Republic of Italy 8.50% 2004................................ 4,131,648 5,868,789
-------------
10,413,929
-------------
JAPAN -- 10.9%
Asian Development Bank 5.00% 2003........................... 221,000,000 2,180,665
Asian Development Bank 5.63% 2002........................... 320,000,000 3,134,320
Government of Japan zero coupon 2008........................ 820,000,000 6,383,000
International Bank of Reconstruction & Development 2.00%
2008...................................................... 80,000,000 701,773
International Bank of Reconstruction & Development 5.75%
2008...................................................... USD 900,000 921,399
-------------
13,321,157
-------------
NETHERLANDS -- 2.7%
Bank Nederlandse Gemeenten NV 6.38% 2005.................... GBP 700,000 1,241,222
Nederlandse Waterschapsbank NV 6.13% 2008................... USD 2,000,000 2,096,250
-------------
3,337,472
-------------
NEW ZEALAND -- 1.0%
New Zealand Government 8.00% 2006........................... 1,900,000 1,188,616
-------------
NORWAY -- 1.1%
Kingdom of Norway 6.75% 2007................................ 9,000,000 1,360,717
-------------
</TABLE>
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4
<PAGE> 6
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(DENOMINATED IN
FOREIGN BONDS & NOTES (CONTINUED) LOCAL CURRENCY) VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SPAIN -- 0.8%
Instituto De Credito Ofical 6.00% 2008...................... USD 900,000 $ 936,330
-------------
SWEDEN -- 0.3%
Kingdom of Sweden 9.00% 2009................................ 2,000,000 363,518
-------------
UNITED KINGDOM -- 11.6%
Abbey National Treasury Services PLC 8.00% 2003............. 1,200,000 2,174,793
Halifax PLC 5.63% 2007...................................... EUR 800,000 514,856
United Kingdom Treasury 7.75% 2006.......................... 2,800,000 5,637,840
United Kingdom Treasury 9.00% 2012.......................... 700,000 1,701,605
United Kingdom Treasury 9.50% 2004.......................... 2,000,000 4,156,052
-------------
14,185,146
-------------
TOTAL FOREIGN BONDS & NOTES (cost $78,655,894).............. 82,271,648
-------------
</TABLE>
<TABLE>
<CAPTION>
DOMESTIC BONDS & NOTES -- 20.6%
----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE BOND -- 6.1%
Ameritech Capital Fund 5.88% 2003........................... 2,200,000 2,244,220
Ford Motor Credit Co. 5.41% 2005............................ 2,900,000 2,864,562
Ford Motor Credit Co. 6.13% 2003............................ 1,300,000 1,333,501
Prudential Insurance Co. 6.38% 2006......................... 1,000,000 1,024,800
-------------
7,467,083
-------------
U.S. GOVERNMENT -- 14.5%
United States Treasury Bonds 6.75% 2026..................... 1,800,000 2,169,558
United States Treasury Bonds 11.25% 2015.................... 1,900,000 3,142,714
United States Treasury Notes 3.63% 2008..................... 2,639,325 2,608,814
United States Treasury Notes 5.63% 2008..................... 2,800,000 2,985,500
United States Treasury Notes 6.25% 2003..................... 2,500,000 2,644,533
United States Treasury Notes 7.00% 2006..................... 3,700,000 4,213,375
-------------
17,764,494
-------------
TOTAL DOMESTIC BONDS & NOTES (cost $24,917,911)............. 25,231,577
-------------
TOTAL INVESTMENT SECURITIES (cost $103,573,805)............. 107,503,225
-------------
SHORT-TERM SECURITIES -- 8.3%
----------------------------------------------------------------------------------------------
TIME DEPOSIT -- 6.4%
Cayman Island Time Deposit with State Street Bank & Trust
Co. 4.69% due 2/01/99 (cost $7,829,000)................... 7,829,000 7,829,000
-------------
U.S. GOVERNMENT -- 1.9%
United States Treasury Notes 5.63% due 10/31/99 (cost
$2,315,836)............................................... 2,300,000 2,315,456
-------------
TOTAL SHORT-TERM SECURITIES (cost $10,144,836).............. 10,144,456
-------------
TOTAL INVESTMENTS --
(cost $113,718,641) 96.2% 117,647,681
Other assets less liabilities -- 3.8 4,658,402
------ -------------
NET ASSETS -- 100.0% $ 122,306,083
====== =============
</TABLE>
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5
<PAGE> 7
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
-----------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DEM 3,744,122 JPY 264,803,000 02/10/99 $ 89,252
*USD 104,924 JPY 12,307,268 02/10/99 1,318
*DEM 3,744,122 JPY 264,803,000 02/10/99 19,323
JPY 385,209,917 USD 3,340,067 02/10/99 14,774
CHF 4,211,569 USD 3,053,433 02/17/99 72,198
NZD 2,231,258 USD 1,206,062 02/19/99 2,436
*USD 1,516,308 CAD 2,301,000 02/22/99 9,959
JPY 100,115,957 USD 870,127 03/04/99 3,575
GBP 9,347,417 USD 15,441,933 03/26/99 79,792
DKK 40,364,000 USD 6,282,921 04/13/99 93,563
AUD 2,878,772 USD 1,816,707 04/15/99 2,929
AUD 1,904,901 USD 1,218,870 04/15/99 18,682
USD 1,131,299 SEK 8,804,220 04/22/99 3,422
*SEK 4,904,380 USD 638,192 04/22/99 6,098
EUR 7,370,068 USD 8,584,876 04/26/99 168,799
EUR 117,244 USD 135,945 04/26/99 2,060
EUR 4,170,652 USD 4,837,957 04/26/99 75,378
EUR 2,578,480 USD 3,005,528 04/26/99 61,093
EUR 1,743,570 USD 2,026,795 04/26/99 35,766
NOK 9,974,158 USD 1,330,154 04/28/99 10,995
EUR 3,180,213 USD 3,713,137 05/20/99 76,817
----------
$ 848,229
----------
</TABLE>
<TABLE>
<CAPTION>
GROSS UNREALIZED
DEPRECIATION
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
JPY 994,292,187 USD 8,574,811 02/10/99 $ (8,334)
JPY 100,956,198 USD 826,000 02/10/99 (45,496)
JPY 216,238,356 USD 1,820,188 02/10/99 (46,472)
*USD 97,967 JPY 11,295,603 02/10/99 (459)
*USD 269,123 JPY 30,585,000 02/10/99 (5,100)
+*USD 234,000 CHF 313,373 02/17/99 (12,173)
CAD 3,699,772 USD 2,392,738 02/22/99 (61,342)
USD 752,166 AUD 1,188,000 02/23/99 (3,923)
JPY 202,550,759 USD 1,701,392 03/04/99 (51,784)
USD 195,188 EUR 169,000 03/26/99 (2,524)
*USD 1,513,203 AUD 2,376,000 04/15/99 (16,198)
*USD 126,334 EUR 108,497 04/26/99 (2,438)
----------
(256,243)
----------
Net Unrealized Appreciation.......... $ 591,986
==========
</TABLE>
----------------------------
* Represents fully offsetting forward foreign currency contracts
that do not have additional market risk but have continued
counterparty settlement risk.
+ Represents a forward foreign currency contract that was
transacted through an affiliated company.
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
AUD -- Australian Dollar DKK -- Danish Krone NOK -- Norwegian Krone
CAD -- Canadian Dollar EUR -- Euro Dollar NZD -- New Zealand Dollar
CHF -- Swiss Franc GBP -- Pound Sterling SEK -- Swedish Krona
DEM -- Deutsche Mark JPY -- Japanese Yen USD -- United States Dollar
See Notes to Financial Statements
</TABLE>
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6
<PAGE> 8
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SUNAMERICA SERIES TRUST
CORPORATE BOND PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 86.5% AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 6.3%
Apparel & Textiles -- 0.7%
Collins & Aikman Corp. 10.00% 2007.......................... $ 50,000 $ 52,375
Collins & Aikman Corp. 11.50% 2006.......................... 250,000 261,250
GFSI, Inc., Series B 9.63% 2007*............................ 100,000 93,875
Pillowtex Corp., Series B 9.00% 2007........................ 75,000 78,375
Pillowtex Corp. 10.00% 2006................................. 125,000 135,000
Reliance Industries Ltd. 8.25% 2027*........................ 500,000 424,710
Automotive -- 0.9%
Aftermarket Technology Corp. 12.00% 2004.................... 75,000 78,563
Arvin Industries, Inc. 6.75% 2008........................... 375,000 350,602
Dana Corp. 7.00% 2028....................................... 800,000 842,304
Lear Corp. 9.50% 2006....................................... 50,000 55,125
Oshkosh Truck Corp. 8.75% 2008*............................. 50,000 49,375
Housing -- 0.1%
American Builders & Contractors Supply Co., Inc., Series B
10.63% 2007............................................... 75,000 70,313
Building Materials Corp. of America 8.63% 2006.............. 100,000 102,000
Falcon Building Products, Inc. zero coupon 2007(1).......... 100,000 59,000
Sealy Mattress Corp., Series B zero coupon 2007*............ 250,000 155,000
Retail -- 4.6%
Boyds Collection Ltd. 9.00% 2008*........................... 150,000 160,125
Carrols Corp. 9.50% 2008*................................... 100,000 101,500
Dayton Hudson Corp. 10.00% 2000............................. 1,000,000 1,080,320
Harcourt General, Inc. 7.20% 2027........................... 1,370,000 1,309,103
Jitney Jungle Stores of America, Inc. 10.38% 2007........... 125,000 131,875
Kmart Corp. Pass Through Trust 8.54% 2015................... 1,123,339 1,156,006
Leslies Poolmart, Inc. 10.38% 2004.......................... 50,000 51,875
Safeway, Inc. 6.50% 2008.................................... 750,000 771,712
ShopKo Stores, Inc. 8.50% 2002.............................. 450,000 476,136
ShopKo Stores, Inc. 9.25% 2022.............................. 1,300,000 1,620,463
Stater Brothers Holdings, Inc. 9.00% 2004................... 100,000 97,000
True Temper Sports, Inc. 10.88% 2008*....................... 75,000 73,688
United States Office Products Co. 9.75% 2008................ 225,000 160,313
-------------
9,997,983
-------------
CONSUMER STAPLES -- 2.4%
Food, Beverage & Tobacco -- 1.4%
Agrilink Foods, Inc. 11.88% 2008*........................... 125,000 131,250
Ameriserve Food Distribution, Inc., 10.13% 2007*............ 200,000 169,000
Aurora Foods, Inc., Series B 9.88% 2007..................... 50,000 54,500
Aurora Foods, Inc., Series B 8.75% 2008..................... 75,000 78,187
Carr Gottstein Foods Co. 12.00% 2005........................ 100,000 114,000
Dimon, Inc. 8.88% 2006...................................... 75,000 73,129
Dominos, Inc. 10.38% 2009*.................................. 100,000 102,750
Eagle Family Foods, Inc., Series B 8.75% 2008*.............. 150,000 144,375
International Home Foods, Inc. 10.38% 2006.................. 100,000 108,250
Nebco Evans Holding Co. zero coupon 2007(1)................. 125,000 59,844
Philip Morris Cos., Inc. 7.75% 2027......................... 1,000,000 1,135,880
Purina Mills, Inc. 9.00% 2010............................... 50,000 49,875
</TABLE>
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7
<PAGE> 9
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER STAPLES (continued)
Household Products -- 1.0%
Fort James Corp. 6.23% 2001................................. $ 600,000 $ 603,414
NBTY, Inc., Series B 8.63% 2007............................. 100,000 97,625
Playtex Family Products Corp. 9.00% 2003.................... 200,000 206,500
Polymer Group, Inc., Series B 8.75% 2008.................... 150,000 149,250
Polymer Group, Inc., Series B 9.00% 2007.................... 200,000 201,250
Revlon Consumer Products Corp. 8.63% 2008................... 400,000 357,000
-------------
3,836,079
-------------
EDUCATION -- 0.3%
University -- 0.3%
Boston University 7.63% 2097................................ 500,000 569,345
-------------
ENERGY -- 3.4%
Energy Services -- 1.9%
Baker Hughes, Inc. 6.25% 2009*.............................. 1,000,000 1,025,030
Chiles Offshore LLC 10.00% 2008............................. 125,000 100,000
Coastal Corp. 9.75% 2003.................................... 250,000 288,557
Dailey International, Inc. 9.50% 2008....................... 150,000 72,000
Enersis SA 7.40% 2016....................................... 600,000 488,970
ISG Resources, Inc. 10.00% 2008............................. 50,000 49,875
Occidental Petroleum Corp. 8.50% 2004....................... 450,000 455,620
Pride Petroleum Services, Inc. 9.38% 2007................... 175,000 165,375
Tosco Corp. 7.00% 2000...................................... 250,000 253,700
Energy Sources -- 1.5%
Continental Resources, Inc. 10.25% 2009*.................... 125,000 107,188
Forcenergy, Inc. 8.50% 2007................................. 100,000 45,000
Forcenergy, Inc. 9.50% 2006................................. 50,000 25,500
Houston Exploration Co. 8.63% 2008.......................... 125,000 123,750
Husky Oil Ltd. 7.13% 2006................................... 1,000,000 995,130
KCS Energy, Inc. 8.88% 2008................................. 100,000 61,250
Nuevo Energy Co., Series B 8.88% 2008....................... 100,000 95,750
Ocean Energy, Inc. 10.38% 2005.............................. 75,000 78,000
Sun Co., Inc. 9.00% 2024.................................... 750,000 939,540
-------------
5,370,235
-------------
FINANCE -- 18.8%
Banks -- 3.6%
ABN Amro Holdings NV 7.30% 2026............................. 500,000 523,275
Continental Bank NA 12.50% 2001(2).......................... 300,000 342,726
Den Danske Bank 7.40% 2010*................................. 500,000 530,130
Firstbank Puerto Rico 7.63% 2005(3)......................... 750,000 756,075
National Australia Bank Ltd. 6.60% 2007..................... 500,000 513,885
National Bank of Canada 8.13% 2004.......................... 750,000 826,560
Republic New York Corp. 7.75% 2009.......................... 1,225,000 1,397,823
Security Pacific Corp. 11.50% 2000.......................... 275,000 303,149
Swedbank 7.50% 2049......................................... 500,000 508,940
Financial Services -- 11.9%
125 Home Loan Owner Trust 9.26% 2029(3)..................... 1,250,000 1,157,422
Allmerica Financial Corp. 7.63% 2025........................ 500,000 544,915
Amvescap PLC 6.60% 2005*.................................... 1,000,000 972,360
Arvin Capital I 9.50% 2027.................................. 500,000 584,600
Barclays North American Capital Corp. 9.75% 2021............ 1,000,000 1,125,160
Case Equipment Loan Trust 7.30% 2002........................ 20,509 20,590
Chevy Chase Auto Receivables 5.80% 2002..................... 26,278 26,327
CNA Financial Corp. 6.95% 2018.............................. 500,000 485,450
CNA Financial Corp. 7.25% 2023.............................. 500,000 494,200
</TABLE>
- ---------------------
8
<PAGE> 10
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Continental Global Group, Inc., Series B 11.00% 2007........ $ 150,000 $ 131,813
Delphi Financial Group, Inc. 8.00% 2003..................... 1,000,000 1,065,950
Delphi Funding LLC 9.31% 2027............................... 800,000 927,560
Donaldson Lufkin & Jenrette, Inc. 6.88% 2005................ 1,000,000 1,038,820
Ford Capital BV 9.38% 2001.................................. 600,000 650,688
Ford Capital BV 9.50% 2001.................................. 200,000 218,340
Ford Motor Credit Co. 6.88% 2001............................ 550,000 566,156
General Motors Acceptance Corp. 5.63% 2001.................. 300,000 301,545
Green Tree Financial Corp. 10.25% 2002...................... 970,000 1,034,282
GS Escrow Corp. 7.13% 2005*................................. 300,000 298,863
Lehman Brothers, Inc. 7.38% 2007............................ 1,250,000 1,317,600
National Rural Utilities Cooperative Finance Corp. 5.50%
2005...................................................... 250,000 250,498
National Rural Utilities Cooperative Finance Corp. 5.75%
2008...................................................... 1,250,000 1,273,687
Navistar Financial Corp. 6.55% 2001......................... 19,903 19,915
Reinsurance Group America, Inc. 7.25% 2006*................. 500,000 545,280
Resolution Funding Corp. zero coupon 2021................... 640,000 186,131
Salomon, Inc. 7.20% 2004.................................... 525,000 554,374
Santander Finance Issuances 7.25% 2015...................... 1,000,000 1,001,960
Sun Communities Operating LP 6.77% 2005..................... 900,000 943,137
Susa Partnership LP 7.50% 2027.............................. 750,000 690,015
Susa Partnership LP 8.20% 2017.............................. 250,000 248,860
Tanger Properties Ltd. 8.75% 2001........................... 85,000 88,461
Trizec Finance Corp., Ltd. 10.88% 2005...................... 67,000 70,183
Insurance -- 3.3%
Conseco, Inc. 6.40% 2003.................................... 500,000 473,040
Conseco, Inc. 10.50% 2004................................... 750,000 843,353
Equitable Life Assurance Society of the US 7.70% 2015*...... 1,000,000 1,112,490
Geico Corp. 9.15% 2021...................................... 500,000 563,535
Life Re Capital Trust I 8.72% 2027*......................... 1,000,000 1,146,410
Provident Cos., Inc. 7.41% 2038............................. 350,000 344,029
USF&G Capital II, Series B 8.47% 2027....................... 500,000 544,880
USF&G Capital III 8.31% 2046*............................... 250,000 289,670
-------------
29,855,112
-------------
HEALTHCARE -- 0.9%
Health Services -- 0.7%
Everest Healthcare Services Corp. 9.75% 2008*............... 75,000 76,313
Hudson Respiratory Care, Inc. 9.13% 2008*................... 125,000 97,500
Tenet Healthcare Corp. 8.00% 2005........................... 450,000 463,500
Tenet Healthcare Corp. 8.13% 2008*.......................... 500,000 518,010
Medical Products -- 0.1%
Conmed Corp. 9.00% 2008..................................... 150,000 150,000
Medical Products & Services -- 0.1%
Dade International, Inc. 11.13% 2006*....................... 100,000 109,500
-------------
1,414,823
-------------
INDUSTRIAL & COMMERCIAL -- 6.0%
Aerospace & Military Technology -- 0.8%
Aviation Sales Co. 8.13% 2008............................... 100,000 99,250
Eagle Picher Industries, Inc. 9.38% 2008.................... 150,000 144,000
Raytheon Co. 6.15% 2008..................................... 750,000 769,320
Raytheon Co. 7.00% 2028..................................... 200,000 215,064
Business Services -- 3.8%
Allied Waste North America, Inc. 7.63% 2006*................ 500,000 516,250
Coinmach Corp. 11.75% 2005.................................. 50,000 54,750
Dialog Corp. PLC, Series A 11.00% 2007...................... 75,000 73,313
</TABLE>
---------------------
9
<PAGE> 11
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Business Services (continued)
Glenoit Corp. 11.00% 2007................................... $ 50,000 $ 46,375
Grove Worldwide LLC 9.25% 2008*............................. 150,000 135,750
Hertz Corp. 7.00% 2028...................................... 1,000,000 1,048,260
Holt Group, Inc. 9.75% 2006*................................ 100,000 69,750
National Equipment Services, Inc. 10.00% 2004............... 150,000 148,125
Nationsrent, Inc. 10.38% 2008............................... 125,000 130,937
Service Corp. International 6.50% 2008...................... 550,000 546,337
SMFC Trust 7.76% 2035(3).................................... 245,087 208,324
Statia Terminals International, Series B 11.75% 2003........ 50,000 50,875
Tekni Plex, Inc., Series B 9.25% 2008*...................... 125,000 130,313
United Rentals, Inc. 9.25% 2009............................. 150,000 153,375
United Stationers Supply Co. 12.75% 2005.................... 33,000 36,671
USA Waste Service, Inc. 7.13% 2007.......................... 750,000 803,400
USA Waste Service, Inc. 6.13% 2001.......................... 650,000 655,031
Waste Management, Inc. 8.75% 2018........................... 850,000 949,305
WESCO Distribution, Inc., Series B 9.13% 2008............... 250,000 253,437
WESCO International, Inc. zero coupon 2008(1)............... 50,000 30,563
Electrical Equipment -- 0.1%
Amphenol Corp. 9.88% 2007................................... 150,000 152,250
Machinery -- 0.2%
Alvey Systems, Inc. 11.38% 2003............................. 69,000 70,380
CLARK Material Handling Co., Series B 10.75% 2006........... 100,000 104,250
National Equipment Services, Inc. 10.00% 2004............... 50,000 49,375
Neenah Corp., Series B 11.13% 2007.......................... 100,000 103,250
Multi-Industry -- 0.1%
Fisher Scientific International, Inc. 9.00% 2008............ 250,000 253,125
Transportation -- 1.0%
Allied Holdings, Inc., Series B 8.63% 2007.................. 100,000 100,250
Ameritruck Distribution Corp., Series B 12.25% 2005(4)+..... 100,000 7,000
Gearbulk Holdings Ltd. 11.25% 2004.......................... 100,000 105,000
HDA Parts Systems, Inc. 12.00% 2005*........................ 50,000 46,375
Johnstown America Industries, Inc., Series C 11.75% 2005.... 50,000 53,000
Stena AB 8.75% 2007......................................... 100,000 93,875
Stena AB 10.50% 2005........................................ 100,000 101,375
Stena Line AB 10.63% 2008................................... 100,000 86,750
Transport Ocean Container Corp. 12.25% 2004................. 850,000 964,750
-------------
9,559,780
-------------
INFORMATION & ENTERTAINMENT -- 9.0%
Broadcasting & Media -- 7.9%
Acme Televison LLC, Series B zero coupon 2004............... 75,000 62,906
Affiliated Newspapers Investments, Inc. zero coupon
2006(1)(2)................................................ 100,000 102,500
Big City Radio, Inc. zero coupon 2005*...................... 150,000 102,750
CBS Radio Corp. 11.38% 2009(5).............................. 105,200 124,005
CF Cable TV, Inc. 9.13% 2007................................ 500,000 533,350
Chancellor Media Corp., Series B 8.75% 2007................. 50,000 53,000
Chancellor Media Corp. 9.00% 2008*.......................... 150,000 165,375
Chancellor Media Corp. 9.38% 2004........................... 100,000 105,750
Chancellor Media Corp., Series B 10.50% 2007................ 100,000 109,125
Chancellor Media Corp., Series B 8.13% 2007................. 300,000 312,000
Comcast Cable Communications 8.50% 2027*.................... 500,000 625,965
Comcast Corp. 9.38% 2005.................................... 200,000 214,258
Comcast UK Cable Partners Ltd. zero coupon 2007(1).......... 175,000 151,375
Continental Cablevision, Inc. 9.50% 2013.................... 1,250,000 1,451,675
Cox Communications, Inc. 6.69% 2004......................... 250,000 263,982
CSC Holdings, Inc. 9.25% 2005............................... 325,000 352,625
</TABLE>
- ---------------------
10
<PAGE> 12
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT (continued)
Broadcasting & Media (continued)
Cumulus Media, Inc. 10.38% 2008............................. $ 75,000 $ 80,438
Diamond Cable PLC zero coupon 2007*(1)...................... 150,000 130,875
Diamond Holdings PLC 9.13% 2008*............................ 100,000 105,000
Echostar DBS Corp. 9.38% 2009*.............................. 300,000 308,250
Fox/Liberty Networks LLC zero coupon 2007*(1)............... 250,000 181,250
Fox/Liberty Networks LLC 8.88% 2007......................... 100,000 104,000
Garden State Newspapers, Inc., Series B 8.75% 2009.......... 50,000 48,375
Hollinger International Publishing, Inc. 9.25% 2007......... 125,000 133,438
International CableTel, Inc. zero coupon 2006(1)............ 250,000 212,500
Lamar Advertising Co. 8.63% 2007............................ 150,000 160,875
Loews Ciniplex Entertainment Corp. 8.88% 2008............... 100,000 101,000
Millicom International Cellular SA zero coupon 2006(1)...... 200,000 145,000
News America Holdings, Inc. 7.90% 2095...................... 450,000 502,204
News America Holdings, Inc. 8.00% 2016...................... 650,000 731,159
News America Holdings, Inc. 10.13% 2012..................... 500,000 586,735
Outdoor Systems, Inc. 8.88% 2007............................ 300,000 324,000
Paramount Communications, Inc. 8.25% 2022................... 500,000 534,360
Pegasus Communications Corp. 9.63% 2005..................... 100,000 103,750
Pegasus Communications Corp. 9.75% 2006..................... 50,000 52,125
Regal Cinemas, Inc. 9.50% 2008*............................. 100,000 101,000
Regal Cinemas, Inc. 9.50% 2008.............................. 125,000 126,250
Rogers Cablesystems Ltd. 10.00% 2007........................ 100,000 114,250
Rogers Cablesystems Ltd. Class B 10.00% 2005................ 225,000 255,938
SFX Broadcasting, Inc., Series B 10.75% 2006................ 33,000 36,630
Sinclair Broadcast Group, Inc. 8.75% 2007................... 150,000 153,750
Sinclair Broadcast Group, Inc. 9.00% 2007*.................. 225,000 233,437
Sinclair Broadcast Group, Inc. 10.00% 2005.................. 50,000 53,000
Telewest Communications PLC zero coupon 2007(1)............. 425,000 376,125
Teligent, Inc. 11.50% 2007.................................. 150,000 142,500
TKR Cable, Inc. 10.50% 2007................................. 1,200,000 1,304,256
UIH Australia Pacific, Inc., Series B zero coupon 2006(1)... 100,000 59,000
United International Holdings, Inc. 10.75% 2008(1).......... 250,000 167,500
Ziff Davis, Inc. 8.50% 2008................................. 200,000 199,000
Leisure & Tourism -- 1.1%
AMF Group, Inc., Series B zero coupon 2006(1)............... 197,000 114,260
Continental Airlines, Series B 6.90% 2017................... 750,000 749,940
Courtyard Marriott Ltd., Series B 10.75% 2008............... 50,000 51,375
HMH Properties, Inc., Series B 7.88% 2008................... 200,000 194,000
Premier Parks, Inc. zero coupon 2008(1)..................... 250,000 171,875
Premier Parks, Inc., Series A 12.00% 2003................... 100,000 107,750
Six Flags Theme Parks, Inc., Series A 12.25% 2005(1)........ 125,000 138,750
Southwest Airlines Co. 7.38% 2027........................... 215,000 232,436
-------------
14,358,997
-------------
INFORMATION TECHNOLOGY -- 6.6%
Communication Equipment -- 0.1%
Metromedia Fiber Network, Inc. 10.00% 2008*................. 100,000 105,750
Computers & Business Equipment -- 0.5%
Dell Computer Corp. 7.10% 2028.............................. 250,000 255,165
Diva Systems Corp. zero coupon 2008*(1)(2)(3)............... 50,000 19,000
Harris Corp. 10.38% 2018.................................... 500,000 527,205
Software -- 0.3%
PSINet, Inc. 11.50% 2008*................................... 100,000 108,000
PSINet, Inc. 10.00% 2005.................................... 100,000 103,000
Sitel Corp. 9.25% 2006...................................... 200,000 164,500
Verio, Inc. 11.25% 2008*.................................... 100,000 107,000
</TABLE>
---------------------
11
<PAGE> 13
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Telecommunications -- 5.7%
Anixter, Inc. 8.00% 2003.................................... $ 1,300,000 $ 1,394,952
Arch Communications Group, Inc. 12.75% 2007*................ 100,000 98,750
BellSouth Telecommunications, Inc. 6.00% 2002............... 500,000 515,050
BellSouth Telecommunications, Inc. 7.00% 2095............... 1,250,000 1,394,137
BellSouth Telecommunications, Inc. 7.63% 2035............... 250,000 277,005
Call-Net Enterprises, Inc. zero coupon 2007(1).............. 250,000 159,375
Centennial Cellular Operating Co. 10.75% 2008............... 125,000 131,875
Charter Communications South East LP 11.25% 2006............ 50,000 57,250
Comcast Cellular Holdings, Inc., Series B 9.50% 2007........ 50,000 57,250
E.Spire Communications, Inc. zero coupon 2005(1)............ 75,000 42,750
Hermes Europe Railtel 11.50% 2007........................... 150,000 165,000
Hermes Europe Railtel BV 10.38% 2009........................ 100,000 106,000
ICG Holdings, Inc. zero coupon 2006......................... 300,000 231,000
Intermedia Communications, Inc. zero coupon 2006(1)......... 175,000 140,875
Intermedia Communications, Inc. zero coupon 2007(1)......... 275,000 191,125
Intermedia Communications, Inc. 8.60% 2008*................. 200,000 193,000
IXC Communications, Inc. 9.00% 2008*........................ 150,000 149,250
Lenfest Communications, Inc. 8.38% 2005..................... 150,000 163,500
Level 3 Communications, Inc. zero coupon 2008(1)*........... 300,000 177,375
Level 3 Communications, Inc. 9.13% 2008..................... 475,000 471,437
McLeod USA, Inc. zero coupon 2007(1)........................ 350,000 276,500
McLeod USA, Inc. 8.38% 2008*................................ 50,000 51,375
Metronet Communications Corp. zero coupon 2008(1)........... 475,000 323,000
Metronet Communications Corp. 10.63% 2008*.................. 50,000 52,875
Metronet Communications Corp. 12.00% 2007(2)................ 50,000 55,625
Nextel Communications, Inc. zero coupon 2007(1)............. 275,000 187,687
Nextel Communications, Inc. zero coupon 2008*(1)............ 375,000 240,000
Nextel International, Inc. zero coupon 2008*(1)............. 75,000 34,781
Nextlink Communications, Inc. zero coupon 2008(1)........... 150,000 87,750
Nextlink Communications, Inc. 9.00% 2008*................... 100,000 95,250
NTL, Inc. zero coupon 2008*(1).............................. 225,000 157,219
NTL, Inc., Series B zero coupon 2008(1)..................... 200,000 139,750
Orange PLC 8.00% 2008....................................... 150,000 156,000
Pathnet, Inc. 12.25% 2008................................... 100,000 58,000
Qwest Communications International, Inc., Series B zero
coupon 2008*(1)........................................... 50,000 38,938
Qwest Communications International, Inc., Series B 10.88%
2007...................................................... 98,000 113,068
Qwest Communications International, Inc. zero coupon
2007(1)................................................... 100,000 80,000
Rogers Cantel, Inc. 8.80% 2007.............................. 75,000 78,750
Telecommunications Techniques LLC 9.75% 2008*............... 325,000 319,312
Telesystem International Wireless, Inc., Series B zero
coupon 2007(1)............................................ 250,000 107,500
Teligent, Inc. zero coupon 2008............................. 100,000 49,000
Triton PCS, Inc. zero coupon 2008*(1)....................... 250,000 137,188
Viatel, Inc. zero coupon 2008(1)(3)......................... 50,000 29,500
Viatel, Inc. 11.25% 2008(3)................................. 75,000 75,375
-------------
10,451,019
-------------
MATERIALS -- 7.0%
Chemicals -- 0.3%
Chattem, Inc. 8.88% 2008.................................... 125,000 127,500
Huntsman Corp. 9.50% 2007*.................................. 150,000 152,250
ISP Holdings, Inc., Series B 9.75% 2002..................... 50,000 52,125
ISP Holdings, Inc., Series B 9.00% 2003..................... 75,000 79,125
Forest Products -- 1.8%
Buckeye Cellulose Corp. 9.25% 2008.......................... 125,000 132,500
Donohue Forest Products, Inc. 7.63% 2007.................... 750,000 831,840
Pope & Talbot, Inc. 8.38% 2013.............................. 250,000 228,093
Quno Corp. 9.13% 2005....................................... 1,500,000 1,606,560
</TABLE>
- ---------------------
12
<PAGE> 14
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Forest Products (continued)
Stone Container Corp. 11.50% 2004........................... $ 50,000 $ 52,500
Stone Container Corp. 12.25% 2002........................... 50,000 50,500
Metals & Minerals -- 4.9%
A.K. Steel Holding Corp. 9.13% 2006......................... 100,000 107,000
Aei Resources, Inc. 10.50% 2005............................. 100,000 98,750
Aei Resources, Inc. 11.50% 2006............................. 150,000 150,187
Albecca, Inc. 10.75% 2008*.................................. 200,000 199,000
Barrick Gold Corp. 7.50% 2007............................... 1,500,000 1,550,235
Euramax International PLC 11.25% 2006....................... 100,000 100,000
Inco Ltd. 9.60% 2022........................................ 1,325,000 1,494,295
International Utility Structures 10.75% 2008................ 50,000 47,250
Metals USA, Inc. 8.63% 2008................................. 75,000 72,000
MMI Products, Inc. 11.25% 2007*............................. 150,000 161,625
Normandy Finance Ltd. 7.50% 2005*........................... 1,150,000 1,192,170
Placer Dome, Inc. 8.50% 2045................................ 1,120,000 1,038,341
Ryderson Tull, Inc. 9.13% 2006.............................. 100,000 107,000
Santa Fe Pacific Gold Corp. 8.38% 2005...................... 225,000 226,688
Scotts Co. 8.63% 2009....................................... 50,000 51,625
Southdown, Inc., Series B 10.00% 2006....................... 1,000,000 1,080,000
Sterling Chemicals, Inc. 11.75% 2006........................ 75,000 64,313
-------------
11,053,472
-------------
MUNICIPAL BONDS -- 0.5%
Municipal Bonds -- 0.5%
Atlanta & Fulton County Georgia Recreation 7.00% 2028....... 500,000 514,950
McKeesport Pennsylvania, Series B 7.30% 2020................ 250,000 260,585
-------------
775,535
-------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 0.9%
Province of Quebec 11.00% 2015.............................. 250,000 276,955
Province of Quebec 13.25% 2014.............................. 890,000 971,844
Republic of Columbia 7.25% 2003............................. 250,000 215,000
-------------
1,463,799
-------------
REAL ESTATE -- 0.7%
Real Estate Investment Trusts -- 0.7%
Chelsea GCA Realty, Inc. 7.75% 2001......................... 150,000 148,836
HMH Properties, Inc., Series B 8.45% 2008................... 200,000 200,000
Price REIT, Inc. 7.50% 2006................................. 750,000 764,828
-------------
1,113,664
-------------
U.S. GOVERNMENT & AGENCIES -- 21.8%
U.S. Government & Agencies -- 21.8%
Federal Farm Credit Bank 5.93% 2008......................... 1,250,000 1,303,500
Federal Home Loan Banks 5.80% 2008.......................... 3,000,000 3,108,270
Federal National Mortgage Association 6.00% 2099............ 2,000,000 2,007,500
Federal National Mortgage Association 6.50% 2028............ 1,985,805 2,003,796
Federal National Mortgage Association 6.50% 2099............ 1,000,000 1,009,060
Federal National Mortgage Association 8.50% 2005............ 750,000 775,313
Government National Mortgage Association 7.50% 2029......... 1,782,000 1,840,467
Government National Mortgage Association 7.50% 2099......... 1,000,000 1,032,810
United States Treasury Bonds 6.00% 2026..................... 1,750,000 1,920,905
United States Treasury Bonds 6.13% 2027..................... 1,585,000 1,783,616
United States Treasury Bonds 6.38% 2027..................... 3,832,000 4,435,540
United States Treasury Bonds 8.00% 2021..................... 1,750,000 2,351,563
United States Treasury Bonds 8.13% 2021..................... 750,000 1,016,835
</TABLE>
---------------------
13
<PAGE> 15
<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 $ 1,950,368
United States Treasury Bonds 11.63% 2004.................... 1,000,000 1,343,440
United States Treasury Notes 5.63% 2008..................... 2,000,000 2,132,500
United States Treasury Notes 6.13% 2007..................... 1,900,000 2,078,429
United States Treasury Notes 6.25% 2003..................... 250,000 264,610
United States Treasury Notes 6.25% 2007..................... 2,000,000 2,196,240
-------------
34,554,762
-------------
UTILITIES -- 1.9%
Electric Utilities -- 1.4%
El Paso Electric Co. 9.40% 2011............................. 125,000 143,400
Israel Electric Corp Ltd. 7.88% 2026*....................... 850,000 844,373
Niagara Mohawk Power Corp. zero coupon 2010(1).............. 50,000 39,687
Puget Sound Energy 7.02% 2027............................... 900,000 982,026
Tenaga Nasional Berhad 7.50% 2096*.......................... 500,000 275,000
Gas & Pipeline Utilities -- 0.1%
Universal Compression, Inc. zero coupon 9.88% 2008(1)....... 150,000 93,563
Telephone -- 0.4%
American Cellular Corp. 10.50% 2008*........................ 175,000 182,000
Callable Net Enterprises, Inc. zero coupon 2008............. 175,000 98,875
Paging Network, Inc. 10.00% 2008............................ 175,000 169,750
Paging Network, Inc. 10.13% 2007............................ 50,000 48,250
United States Xchange LLC 15.00% 2008*...................... 75,000 77,812
-------------
2,954,736
-------------
TOTAL BONDS & NOTES (cost $135,585,524)..................... 137,329,341
-------------
<CAPTION>
PREFERRED STOCK -- 2.4% SHARES
-----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER STAPLES -- 0.0%
Food, Beverage & Tobacco -- 0.0%
Nebco Evans Holding Co. 11.25%(5)........................... 380 25,541
INFORMATION & ENTERTAINMENT -- 0.5%
Broadcasting & Media -- 0.5%
Benedek Communications Corp. 11.50%*(5)..................... 75 74,250
Capstar Broadcasting Partners 12.00%*(5).................... 597 68,779
Capstar Communications, Inc. 12.63%(5)...................... 299 35,955
Cumulus Media, Inc. Series A 13.75%......................... 80 89,204
Pegasus Communications Corp. 12.75%*(5)..................... 118 128,620
Primedia, Inc., Series F 9.20%.............................. 3,000 291,750
Sinclair Capital 11.65%..................................... 500 54,125
-------------
742,683
-------------
INFORMATION TECHNOLOGY -- 0.6%
Software -- 0.5%
Microsoft Corp. convertible $2.196.......................... 8,260 812,061
Telecommunications -- 0.1%
Nextel Communications, Inc. 11.125%(5)...................... 53 49,820
Viatel, Inc., Series A 10.0%(3)............................. 64 7,040
-------------
868,921
-------------
</TABLE>
- ---------------------
14
<PAGE> 16
<TABLE>
<CAPTION>
PREFERRED STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE -- 1.2%
Real Estate Investment Trusts -- 1.2%
Highwood Properties, Inc., Series A 8.625%.................. 1,000 $ 998,125
ProLogis Trust, Series C 8.54%.............................. 20,000 980,000
-------------
1,978,125
-------------
UTILITIES -- 0.1%
Electric Utilities -- 0.1%
Texas Utilities Co. 9.25%................................... 3,000 166,125
-------------
TOTAL PREFERRED STOCK (cost $3,773,972)..................... 3,781,395
-------------
WARRANTS -- 0.0%+ WARRANTS
-----------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 0.0%
Broadcasting & Media -- 0.0%
Australis Holdings Property Ltd. 10/30/01*.................. 50 0
Pegasus Communications Corp. 01/01/07....................... 100 2,000
UIH Australia Pacific, Inc. 05/15/06........................ 100 100
-------------
2,100
-------------
INFORMATION TECHNOLOGY -- 0.0%
Computers & Business Equipment -- 0.0%
Diva Systems Corp. 03/01/08(3).............................. 150 2,040
-------------
Telecommunications -- 0.0%
Metronet Communications Corp. 08/15/07*..................... 50 1,750
Pathnet, Inc. 04/15/08(3)*.................................. 100 1,000
-------------
2,750
-------------
TOTAL WARRANTS (cost $5,019)................................ 6,890
-------------
TOTAL INVESTMENT SECURITIES (cost $139,364,515)............. 141,117,626
-------------
PRINCIPAL
SHORT-TERM SECURITIES -- 12.2% AMOUNT
-----------------------------------------------------------------------------------------
CORPORATE SHORT-TERM NOTES -- 2.9%
Continental Corp. 8.25% due 04/15/99........................ $ 100,000 100,524
Figgie International, Inc. 9.88% due 10/01/99............... 2,250,000 2,266,875
Republic of South Africa 9.63% due 12/15/99................. 500,000 500,235
Signet Banking Corp. 9.63% due 06/01/99..................... 300,000 304,182
Valassis Inserts, Inc. 9.38% due 03/15/99................... 1,500,000 1,503,705
-------------
TOTAL CORPORATE SHORT-TERM NOTES (cost $4,702,472).......... 4,675,521
-------------
TIME DEPOSIT -- 8.6%
Cayman Island Time Deposit with State Street Bank & Trust
Co. 4.50% due 02/01/99 (cost $13,709,000)................. 13,709,000 13,709,000
</TABLE>
---------------------
15
<PAGE> 17
<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
$1,017,078)............................................... $ 1,000,000 $ 1,024,840
-------------
TOTAL SHORT-TERM SECURITIES (cost $19,428,550).............. 19,409,361
-------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS --
(cost $158,793,065) 101.1% 160,526,987
Liabilities in excess of other assets -- (1.1) (1,722,884)
------ -------------
NET ASSETS -- 100.0% $ 158,804,103
====== =============
</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
See Notes to Financial Statements
- ---------------------
16
<PAGE> 18
- ---------------------
SUNAMERICA SERIES TRUST
HIGH-YIELD BOND PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 89.5% AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 8.8%
Apparel & Textiles -- 1.7%
Phillips Van Heusen Corp. 7.75% 2023........................ $ 2,500,000 $ 2,239,425
Phillips Van Heusen Corp. 9.50% 2008*....................... 2,750,000 2,777,500
Automotive -- 0.5%
Trident Automotive PLC 10.00% 2005*......................... 1,500,000 1,530,000
Housing -- 2.6%
Congoleum Corp. 8.63% 2008.................................. 2,250,000 2,227,500
Lifestyle Furnishings International Ltd. 10.88% 2006........ 5,000,000 5,450,000
Retail -- 4.0%
Electronic Retailing Systems International, Inc. zero coupon
2004(1)................................................... 1,500,000 547,500
Evenflo Company, Inc. 11.75% 2006*.......................... 2,500,000 2,575,000
Finlay Fine Jewelry Corp. 8.38% 2008........................ 750,000 708,750
Jitney Jungle Stores America, Inc. 10.38% 2007.............. 1,240,000 1,308,200
Jitney Jungle Stores of America, Inc. 12.00% 2006........... 4,000,000 4,480,000
Jumbo Sports, Inc. 4.25% 2000............................... 900,000 49,500
Shop At Home, Inc. 11.00% 2005.............................. 2,000,000 2,050,000
-------------
25,943,375
-------------
CONSUMER STAPLES -- 4.9%
Food, Beverage & Tobacco -- 0.9%
Specialty Foods Corp. 11.13% 2002........................... 2,850,000 2,693,250
Household Products -- 4.0%
Carson, Inc. 10.38% 2007.................................... 2,000,000 1,530,000
French Fragrances, Inc. 10.38% 2007......................... 2,750,000 2,722,500
Polymer Group, Inc. 9.00% 2007.............................. 3,500,000 3,521,875
Polymer Group, Inc. 8.75% 2008*............................. 3,850,000 3,830,750
-------------
14,298,375
-------------
ENERGY -- 6.1%
Energy Services -- 3.0%
Gulfmark Offshore, Inc. 8.75% 2008.......................... 3,500,000 3,412,500
Parker Drilling Co. 9.75% 2006.............................. 6,490,000 5,532,725
Energy Sources -- 3.1%
Houston Exploration Co. 8.63% 2008*......................... 1,025,000 1,014,750
P& L Coal Holdings Corp. 8.88% 2008*........................ 2,000,000 2,075,000
Pogo Producing Co. 10.38% 2009.............................. 2,000,000 1,985,000
Southwest Royalties, Inc. 10.50% 2004....................... 2,500,000 1,106,250
Statia Terminals International NV 11.75% 2003............... 2,750,000 2,798,125
-------------
17,924,350
-------------
FINANCE -- 2.4%
Banks -- 1.1%
Bankunited Capital Trust 10.25% 2026........................ 2,000,000 2,030,000
Western Financial Savings Bank 8.88% 2007................... 1,500,000 1,125,000
</TABLE>
---------------------
17
<PAGE> 19
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services -- 1.3%
Dollar Financial Group, Inc. 10.88% 2006.................... $ 2,000,000 $ 2,020,000
Richmont Marketing Specialist 10.13% 2007*.................. 2,500,000 1,843,750
-------------
7,018,750
-------------
HEALTHCARE -- 4.7%
Drugs -- 1.4%
Schein Pharmaceutical Inc. 8.13% 2004(2).................... 4,500,000 4,027,500
Health Services -- 3.3%
Fresenius Medical Care Capital Trust 9.00% 2006............. 2,750,000 2,901,250
Fresenius Medical Care Capital Trust 7.88% 2008*............ 1,250,000 1,250,000
Tenet Healthcare Corp. 8.00% 2005........................... 5,500,000 5,665,000
-------------
13,843,750
-------------
INDUSTRIAL & COMMERCIAL -- 5.4%
Aerospace & Military Technology -- 1.4%
Interlake Corp. 12.13% 2002................................. 2,000,000 2,020,000
L3 Communications Corp. 10.38% 2007......................... 2,000,000 2,210,000
Business Services -- 2.3%
Allied Waste North America 7.63% 2006....................... 1,000,000 1,032,500
Allied Waste North America 7.88% 2009....................... 1,000,000 1,032,500
Huntsman Corp. 8.33% 2007*(2)............................... 3,000,000 2,872,500
Metal Management, Inc. 10.00% 2008.......................... 3,000,000 1,792,500
Electrical Equipment -- 0.4%
Protection One Alarm Montana, Inc. 8.13% 2009............... 1,000,000 1,017,500
Transportation -- 1.3%
Golden Ocean Group Ltd. 10.00% 2001......................... 3,350,000 929,625
Pegasus Shipping Ltd. 11.88% 2004........................... 1,500,000 1,297,500
Travelcenters America, Inc. 10.25% 2007..................... 1,500,000 1,530,000
-------------
15,734,625
-------------
INFORMATION & ENTERTAINMENT -- 21.0%
Broadcasting & Media -- 19.8%
Adelphia Communications Corp. 8.13% 2003.................... 3,500,000 3,596,250
Australis Holdings Property Ltd. zero coupon 2002(1)(3)..... 1,000,000 20,000
Big City Radio, Inc. zero coupon 2005(1).................... 3,500,000 2,397,500
Carmike Cinemas, Inc. 9.38% 2009............................ 3,500,000 3,543,750
Cellnet Data Systems, Inc. zero coupon 2007(1).............. 2,200,000 572,000
Central European Media Enterprises Ltd. 9.38% 2004.......... 3,525,000 2,687,813
Chancellor Media Corp. 8.00% 2008........................... 3,000,000 3,232,500
Chancellor Media Corp. 9.00% 2008*.......................... 2,000,000 2,195,000
Comcast UK Cable Partners Ltd. zero coupon 2007(1).......... 2,500,000 2,162,500
Diamond Holdings PLC 9.13% 2008............................. 2,500,000 2,625,000
Echostar DBS Corp. 9.38% 2009............................... 5,500,000 5,651,250
International CableTel, Inc. zero coupon 2006(1)............ 5,000,000 4,250,000
Knology Holdings, Inc. zero coupon 2007(1).................. 2,000,000 1,015,000
Mediacom LLC/ Mediacom Capital Corp. 8.50% 2008............. 5,500,000 5,692,500
Midcom Communications, Inc. 8.25% 2003(5)+.................. 550,000 93,500
Omnipoint Communications, Inc. 8.53% 2006*.................. 2,967,068 2,870,638
Paging Network Do Brasil SA 13.50% 2005..................... 1,594,000 713,315
Radio One, Inc. 7.00% 2004.................................. 1,500,000 1,515,000
Spanish Broadcasting Systems, Inc. 12.50% 2002.............. 2,250,000 2,486,250
Telewest Communications PLC 11.25% 2008*.................... 3,000,000 3,510,000
UIH Australia Pacific, Inc. zero coupon 2006(1)............. 1,500,000 885,000
United International Holdings, Inc. 10.75% 2008(1).......... 4,500,000 3,015,000
Wavetek Corp. 10.13% 2007................................... 3,500,000 3,386,250
</TABLE>
- ---------------------
18
<PAGE> 20
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT (continued)
Leisure & Tourism -- 1.2%
Itt Corp. New 6.25% 2000.................................... $ 3,500,000 $ 3,378,270
-------------
61,494,286
-------------
INFORMATION TECHNOLOGY -- 25.7%
Computers & Business Equipment -- 0.4%
Diva Systems Corp. zero coupon 2008*(1)(4).................. 3,250,000 1,312,188
Electronics -- 1.5%
Pacific West Telecomm, Inc. 13.50% 2009..................... 1,750,000 1,754,375
Park N View, Inc. 13.00% 2008*(4)........................... 3,000,000 2,542,500
Telecommunications -- 23.8%
Call-Net Enterprises, Inc. 8.00% 2008....................... 1,750,000 1,636,250
Centennial Cellular Operating Com. 10.75% 2008*............. 2,750,000 2,901,250
Comcast Cellular Holdings, Inc. 9.50% 2007.................. 5,000,000 5,725,000
DTI Holdings, Inc. zero coupon 2008(1)...................... 3,750,000 932,813
E.spire Communications, Inc. zero coupon 2005(1)............ 2,500,000 1,425,000
E.Spire Communications, Inc. zero coupon 2008(1)............ 500,000 182,500
Filtronic Plc 10.00% 2005*.................................. 3,750,000 3,834,375
Flag Ltd. 8.25% 2008........................................ 2,500,000 2,450,000
Global Crossing Ltd. 9.63% 2008............................. 1,000,000 1,057,500
Globix Corp. 13.00% 2005.................................... 3,750,000 3,384,375
Hermes Europe Railtel BV 11.50% 2007........................ 4,000,000 4,400,000
ICG Holdings, Inc. zero coupon 2007(1)...................... 3,500,000 2,275,000
ICG Services, Inc. 9.88% 2008(1)............................ 4,750,000 2,511,562
International Wireless Communications zero coupon 2001...... 3,750,000 290,625
KMC Telecom Holdings, Inc. zero coupon 2008(1).............. 4,650,000 2,388,937
Level 3 Communications, Inc. zero coupon 2008*(1)........... 1,500,000 886,875
McCaw International Ltd. zero coupon 2007(1)................ 3,250,000 1,824,062
Nextel Communications, Inc. 10.13% 2004..................... 2,000,000 2,015,000
Nextel Communications, Inc. zero coupon 2004(1)............. 2,000,000 2,010,000
Northeast Optic Network, Inc. 12.75% 2008................... 1,500,000 1,518,750
NTL, Inc. zero coupon 2008*(1).............................. 1,750,000 1,222,813
Occidente Y Caribe Celular SA zero coupon 2004(1)........... 2,000,000 1,400,520
Orbcomm Global LP 14.00% 2004............................... 3,000,000 3,307,500
Orion Network Systems, Inc. 12.50% 2007(1).................. 6,000,000 3,862,500
Poland Telecom Finance Bv 14.00% 2007....................... 1,000,000 910,000
Primus Telecommunications Group, Inc. 11.75% 2004........... 1,500,000 1,548,750
Rhythms Netconnections, Inc. zero coupon 2008*(1)(4)........ 2,000,000 1,100,000
RSL Communications Ltd. 12.25% 2006......................... 2,924,000 3,055,580
RSL Communications Plc 10.50% 2008.......................... 2,000,000 1,960,000
Splitrock Services, Inc. 11.75% 2008*....................... 4,750,000 4,263,125
Transtel Pass Through Trust 12.50% 2007*.................... 1,500,000 746,250
Verio, Inc. 13.50% 2004..................................... 1,000,000 1,083,750
Vialog Corp. 12.75% 2001.................................... 2,000,000 1,337,500
Viatel, Inc. zero coupon 2008(1)(3)......................... 500,000 295,000
-------------
75,352,225
-------------
MATERIALS -- 8.5%
Chemicals -- 2.5%
American Pacific Corp. 9.25% 2005........................... 2,000,000 2,055,000
NL Industries, Inc. 11.75% 2003............................. 4,095,000 4,381,650
Sterling Chemicals Holdings, Inc. zero coupon 2008(1)....... 250,000 97,500
Sterling Chemicals, Inc. 11.75% 2006........................ 750,000 643,125
Forest Products -- 1.5%
Ainsworth Lumber Ltd. 12.50% 2007(6)........................ 1,750,000 1,741,250
Doman Industries Ltd. 8.75% 2004............................ 1,750,000 1,299,375
Florida Coast Paper Co. LLC 12.75% 2005+(5)................. 3,000,000 1,320,000
</TABLE>
---------------------
19
<PAGE> 21
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS (continued)
Metals & Minerals -- 4.5%
Acme Metals, Inc. 12.50% 2002(5)............................ $ 1,727,000 $ 1,642,809
GS Technologies Operating, Inc. 12.00% 2004................. 1,500,000 1,020,000
International Utility Structures 10.75% 2008................ 1,750,000 1,653,750
Kaiser Aluminum & Chemical Corp. 12.75% 2003................ 3,000,000 2,910,000
Renco Metals, Inc. 11.50% 2003.............................. 1,500,000 1,567,500
Schuff Steel Co. 10.50% 2008................................ 2,500,000 2,218,750
WCI Steel, Inc. 10.00% 2004................................. 2,250,000 2,261,250
-------------
24,811,959
-------------
UTILITIES -- 2.0%
Telephone -- 2.0%
Celcaribe SA 13.50% 2004.................................... 1,250,000 1,248,437
Primus Telecommunications Gr 11.25% 2009.................... 4,250,000 4,260,625
USN Communications, Inc. zero coupon 2004(1)................ 2,750,000 268,125
-------------
5,777,187
-------------
TOTAL BONDS & NOTES (cost $288,293,574)..................... 262,198,882
-------------
<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.+............................ 2,436 33,806
-------------
TOTAL COMMON STOCK (cost $219,470).......................... 33,823
-------------
PREFERRED STOCK -- 4.1%
-----------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 2.7%
Broadcasting & Media -- 2.7%
Crown Castle International Corp. ........................... 25,000 2,618,750
CSC Holdings, Inc. Series M................................. 44,517 5,186,183
-------------
7,804,933
-------------
INFORMATION TECHNOLOGY -- 1.4%
Telecommunications -- 1.4%
Global Crossing Ltd.*(6).................................... 25,000 2,443,750
Intermedia Communications, Inc. convertible Series F
7.00%* ................................................... 60,000 877,500
IXC Communications, Inc. 7.00%*............................. 15,000 517,500
Omnipoint Corp. convertible 7.00%*.......................... 14,000 420,000
Viatel, Inc., Series A convertible(3)(6).................... 263 28,930
-------------
4,287,680
-------------
TOTAL PREFERRED STOCK (cost $12,339,947).................... 12,092,613
-------------
</TABLE>
- ---------------------
20
<PAGE> 22
<TABLE>
WARRANTS -- 0.1%+ WARRANTS VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 0.0%
Retail -- 0.0%
Electronic Retailing Systems International, Inc. 2/01/04.... 1,500 $ 3,750
-------------
INDUSTRIAL & COMMERCIAL -- 0.0%
Transportation -- 0.0%
Ermis Maritime Holdings Ltd. 3/15/06(3)..................... 1,364 14
Golden Ocean Group Ltd. 8/31/01(3).......................... 2,500 2,500
-------------
2,514
-------------
INFORMATION & ENTERTAINMENT -- 0.0%
Broadcasting & Media -- 0.0%
Australis Holdings Property Ltd. 10/31/01*(3)............... 1,000 0
Cellnet Data Systems, Inc. 9/15/07*(3)...................... 1,700 17,000
Knology Holdings, Inc. 10/15/07*............................ 6,000 12,030
UIH Australia Pacific, Inc. 5/15/06(3)...................... 1,000 1,000
Gaming -- 0.0%
Fitzgerald Gaming Corp. 3/15/99*(3)......................... 2,000 20
-------------
30,050
-------------
INFORMATION TECHNOLOGY -- 0.1%
Computers & Business Equipment -- 0.0%
Diva Systems Corp. 3/01/08(3)............................... 9,750 98
Electronics -- 0.0%
Park N View, Inc.(3)........................................ 3,000 30
Telecommunications -- 0.1%
Bell Technology Group Ltd. 5/01/05(3)....................... 2,500 25
Clearnet Communications, Inc. 9/15/05....................... 3,300 13,200
DTI Holdings, Inc. 3/01/08*(3).............................. 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(3)...................... 1,000 6,250
Rythms Netconnections Inc. 5/15/08(3)....................... 8,000 64,000
Splitrock Services, Inc. 7/15/08*(3)........................ 2,250 22,500
Vialog Corp. 11/15/01(3).................................... 2,000 10,000
-------------
191,925
-------------
TOTAL WARRANTS (cost $423,728).............................. 228,239
-------------
TOTAL INVESTMENT SECURITIES (cost $301,276,719)............. 274,553,557
-------------
PRINCIPAL
SHORT-TERM SECURITIES -- 0.7% AMOUNT
-----------------------------------------------------------------------------------------
CORPORATE SHORT-TERM NOTES -- 0.7%
Revlon Consumer Products Corp. 9.50% due 6/01/99............ $ 2,000,000 1,990,000
-------------
TOTAL SHORT-TERM SECURITIES (cost $2,012,330)............... 1,990,000
-------------
</TABLE>
---------------------
21
<PAGE> 23
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 5.4% AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 5.4%
Joint Repurchase Agreement Account (Note 3)
(cost $15,967,000)........................................ $15,967,000 $ 15,967,000
-------------
TOTAL INVESTMENTS --
(cost $319,256,049) 99.8% 292,510,557
Other assets less liabilities -- 0.2 526,527
------- -------------
NET ASSETS -- 100.0% $ 293,037,084
======= =============
</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 January 31, 1999
(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
- ---------------------
22
<PAGE> 24
- ---------------------
SUNAMERICA SERIES TRUST
WORLDWIDE HIGH INCOME
PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 90.5% AMOUNT VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 3.7%
Automotive -- 0.4%
Hayes Lemmerz International, Inc. 8.25% 2008*............... $ 495,000 $ 497,475
Housing -- 1.2%
American Standard Cos., Inc. 7.38% 2008..................... 475,000 479,750
Building Materials Corp. America 8.00% 2008*................ 375,000 375,000
Nortek, Inc 8.88% 2008*..................................... 545,000 551,812
Retail -- 2.1%
HMV Media Group PLC 10.88% 2008*............................ 500,000 812,565
K Mart Funding Corp. 8.80% 2010............................. 660,000 695,158
Musicland Group Inc. 9.88% 2008 Series B.................... 600,000 606,000
Musicland Group Inc. 9.00% 2003............................. 135,000 133,650
Southland Corp. 5.00% 2003.................................. 240,000 211,200
-------------
4,362,610
-------------
CONSUMER STAPLES -- 0.3%
Food, Beverage & Tobacco -- 0.3%
Smithfield Foods, Inc. 7.63% 2008*.......................... 360,000 346,950
-------------
ENERGY -- 3.4%
Energy Services -- 0.4%
EES Coke Battery, Inc. 9.38% 2007*.......................... 175,000 169,419
R & B Falcon Corp. 9.50% 2008*.............................. 265,000 266,325
Energy Sources -- 3.0%
Husky Oil Ltd. 8.90% 2008................................... 275,000 275,000
Oil Purchase Co. 7.10% 2002*................................ 202,343 191,152
Pemex Petroleos Mex 9.50% 2027.............................. 1,760,000 1,399,200
Petroleos Mexicanos 9.57% 2005*(1).......................... 1,270,000 1,111,250
Synder Oil Corp. 8.75% 2007................................. 590,000 595,900
-------------
4,008,246
-------------
FINANCE -- 7.0%
Banks -- 2.7%
Banco Nacional De Desenvolvime 15.22% 2008*(1).............. 2,250,000 1,518,750
Central Bank Of Nigeria 5.09% 2010.......................... 1,090,000 468,700
Central Bank Philippi 5.96% 2008............................ 1,090,000 921,050
Western Financial Savings Bank 8.88% 2007................... 315,000 236,250
Financial Services -- 4.3%
Alps Series 96-1, Class D 12.75% 2006*...................... 314,288 314,282
California FM Lease Trust 8.50% 2017*....................... 470,263 510,616
Cellco Finance NV 15.00% 2005*.............................. 970,000 921,500
Dillon Read Structured Finance Corp. Series 1993 Class A
6.66% 2010................................................ 86,352 81,467
Dillon Read Structured Finance Corp. Series 1994 Class A
7.60% 2007................................................ 254,356 253,247
Dillon Read Structured Finance Corp. Series 1994 Class A
8.38% 2015................................................ 625,000 640,231
Dillon Read Structured Finance Corp. Series 1994 Class A
9.35% 2019................................................ 200,000 219,216
FMAC Loan Receivables Trust Series 1996 Class C 7.93%
2018*..................................................... 145,832 110,906
Fugi JGB Investment LLC Series A 9.87% 2049*................ 400,000 276,780
</TABLE>
---------------------
23
<PAGE> 25
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Long Beach Acceptance Auto Grantor Trust Series 1997-1 Class
B 6.85% 2003.............................................. $ 193,244 $ 192,250
OHA Auto Grantor Trust 11.00% 2004* Series 1997 Class A..... 599,071 581,750
Pera Financial Services Co. 9.38% 2002...................... 300,000 228,000
SB Treasury Co. 9.40% 2049*(1).............................. 355,000 330,150
Securitized Multiple Asset Series 1997-5 Class A1 7.72%
2005*..................................................... 498,954 324,423
-------------
8,129,568
-------------
HEALTHCARE -- 3.3%
Health Services -- 3.3%
Columbia/HCA Healthcare Corp. 6.91% 2005.................... 300,000 290,976
Columbia/HCA Healthcare Corp. 7.00% 2007.................... 415,000 400,649
Columbia/HCA Healthcare Corp. 7.69% 2025.................... 1,200,000 1,112,004
Fresenius Medical Care Capital Trust 7.88% 2008............. 435,000 436,088
Tenet Healthcare Corp. 8.63% 2007........................... 1,045,000 1,113,698
Vencor Operating, Inc. 9.88% 2005*.......................... 730,000 525,600
-------------
3,879,015
-------------
INDUSTRIAL & COMMERCIAL -- 3.3%
Aerospace & Military Technology -- 0.4%
Jet Equipment Trust 11.79% 2013*............................ 300,000 396,649
Business Services -- 0.7%
Allied Waste North America 7.88% 2009*...................... 150,000 154,875
Norcal Waste Systems, Inc. 13.50% 2005 Series B(1).......... 615,000 691,875
Machinery -- 0.2%
Axia, Inc. 10.75% 2008*..................................... 200,000 202,000
Multi-Industry -- 1.8%
Hutchison Whampoa Ltd 7.45% 2017*........................... 1,020,000 884,299
Reliance Industries Ltd 10.50% 2046......................... 1,550,000 1,238,295
Transportation -- 0.2%
American Commercial Lines LLC 10.25% 2008*.................. 245,000 253,575
-------------
3,821,568
-------------
INFORMATION & ENTERTAINMENT -- 9.4%
Broadcasting & Media -- 6.7%
@Entertainment, Inc. 14.50% 2009............................ 1,900,000 741,000
Adelphia Communications Corp. 8.38% 2008.................... 300,000 312,000
Adelphia Communications Corp. Series B 9.88% 2007........... 65,000 72,150
Adelphia Communications Corp. 7.50% 2004*................... 120,000 121,200
Chancellor Media Corp. 9.00% 2008*.......................... 370,000 407,925
Chancellor Media Corp. 8.13% 2007........................... 450,000 468,000
CSC Holdings, Inc. 7.88% 2007............................... 535,000 578,276
CSC Holdings, Inc. 9.88% 2006............................... 415,000 453,388
Echostar DBS Corp. 9.38% 2009*.............................. 550,000 565,125
Globalstar LP 11.38% 2004*.................................. 315,000 240,975
Outdoor Systems, Inc. 8.88% 2007............................ 690,000 745,200
RCN Corp. zero coupon 2007*(2).............................. 1,660,000 969,025
Rogers Cablesystems Ltd. 10.13% 2012........................ 425,000 471,750
TV Azteca SA 10.13% 2004.................................... 2,100,000 1,716,750
Entertainment Products -- 0.4%
Harrahs Operating, Inc. 7.88% 2005.......................... 515,000 520,150
Leisure & Tourism -- 2.3%
Hilton Hotels Corp. 7.95% 2007.............................. 610,000 647,192
HMH Properties, Inc 7.88% 2005.............................. 810,000 793,800
</TABLE>
- ---------------------
24
<PAGE> 26
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT (continued)
Leisure & Tourism (continued)
Park Place Entertainment Corp 7.88% 2005*................... $ 405,000 $ 403,987
Station Casinos, Inc. 8.88% 2008*........................... 325,000 333,125
Station Casinos, Inc. 9.75% 2007............................ 80,000 83,600
Station Casinos, Inc. 10.13% 2006........................... 355,000 374,525
-------------
11,019,143
-------------
INFORMATION TECHNOLOGY -- 16.4%
Communication Equipment -- 0.3%
Metromedia Fiber Network, Inc. 10.00% 2008*................. 270,000 285,525
Computers & Business Equipment -- 0.4%
Corporate Express Holdings, Inc. 9.63% 2008 Series B........ 450,000 407,250
Entex Information Services 12.50% 2006*..................... 145,000 100,050
Electronics -- 0.6%
Samsung Electronics America, Inc. 9.75% 2003*............... 745,000 738,213
Software -- 0.4%
PSINet Inc. 10.00% 2005..................................... 275,000 283,250
Wam-Net, Inc. zero coupon 2005(2)(3)........................ 400,000 196,000
Telecommunications -- 14.7%
AMSC Co., Inc. 12.25% 2008*(3).............................. 415,000 227,212
Centennial Cellular Operating Co. 10.75% 2008*.............. 240,000 253,200
CIA International de Telecommunicaciones 10.38% 2004*....... 3,680,000 2,502,400
Colt Telecom Group PLC 7.63% 2008........................... 980,000 584,538
Dobson Communications Corp. 11.75% 2007..................... 320,000 342,400
Dolphin Telecom PLC 11.50% 2008*(2)......................... 850,000 365,500
Espirit Telecom Group PLC 10.88% 2008*...................... 400,000 412,000
Global Crossing Ltd. 9.63% 2008............................. 620,000 655,650
Hermes Europe Railtel 11.50% 2007........................... 490,000 539,000
Intermedia Communications, Inc. zero coupon 2007(2) Series
B......................................................... 1,420,000 986,900
IXC Communications, Inc. 9.00% 2008*........................ 275,000 273,625
Lenfest Communications, Inc. 7.63% 2008..................... 460,000 477,825
Lenfest Communications, Inc. 8.38% 2005*.................... 265,000 288,850
Level 3 Communications, Inc. 9.13% 2008*.................... 375,000 372,187
Nextel Communications, Inc. zero coupon 2007(2)............. 1,700,000 1,160,250
Nextel Communications, Inc. zero coupon 2004(2)............. 840,000 846,300
Nextlink Communications, Inc. zero coupon 2008*(2).......... 940,000 549,900
NTL Inc. zero coupon 2008*(2)............................... 550,000 384,313
NTL Inc. 10.75% 2008........................................ 500,000 561,595
Onepoint Communications Corp. 14.50% 2008*(3)............... 370,000 193,325
Primus Telecom Group, Inc. 9.88% 2008*...................... 415,000 388,025
Primus Telecom Group, Inc. 11.25% 2009...................... 135,000 135,338
Qwest Communications International, Inc. zero coupon
2008*(2) Series B......................................... 225,000 175,219
Qwest Communications International, Inc. 10.88% 2007........ 130,000 149,987
Qwest Communications International, Inc. zero coupon
2007*(2)(3)............................................... 1,210,000 968,000
Rhythms Netconnections, Inc. zero coupon 2008(2)(3)......... 1,100,000 605,000
Rogers Cantel, Inc. 8.30% 2007.............................. 750,000 768,750
Rogers Communications, Inc. 9.13% 2006...................... 90,000 94,500
RSL Communications PLC zero coupon 2008(2).................. 1,650,000 528,648
RSL Communications PLC 12.25% 2006.......................... 18,000 18,810
RSL Communications PLC 9.13% 2008*.......................... 710,000 665,625
Transtel SA zero coupon 2008................................ 3,200,000 502,400
Viatel, Inc. zero coupon 2008*(2)(3)........................ 265,000 157,675
-------------
19,145,235
-------------
</TABLE>
---------------------
25
<PAGE> 27
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS -- 1.4%
Chemicals -- 0.7%
ISP Holdings, Inc. Class B 9.00% 2003....................... $ 800,000 $ 844,000
Forest Products -- 0.2%
S.D. Warren Co., Class B 12.00% 2004........................ 265,000 287,525
Metals & Minerals -- 0.5%
Impress Metal Packaging Holdings BV 9.88% 2007.............. 300,000 194,633
Murrin Murrin Holdings Property Ltd. 9.38% 2007............. 360,000 324,000
NSM Steel Inc. 12.25% 2008*................................. 270,000 19,575
-------------
1,669,733
-------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 36.7%
Foreign Government -- 36.7%
Government of Russia 11.00% 2018............................ 6,320,000 1,659,000
Jamaica Government Bonds 10.88% 2005*....................... 700,000 595,000
Kingdom of Jordan 6.00% 2023*(1)............................ 833,000 483,140
Philippines Republic 9.88% 2019............................. 1,100,000 1,129,700
Republic of Argentina 6.19% 2005(1)......................... 6,204,000 4,953,894
Republic of Argentina 8.75% 2002............................ 1,440,000 1,111,680
Republic of Argentina 11.00% 2006........................... 1,500,000 1,365,000
Republic of Argentina 11.38% 2017........................... 4,300,000 3,913,000
Republic of Brazil 6.13% 2006............................... 2,697,600 1,591,584
Republic of Brazil 6.19% 2012............................... 1,030,000 453,200
Republic of Brazil 9.38% 2008............................... 9,960,000 6,474,000
Republic of Bulgaria 2.50% 2012(1).......................... 5,420,000 2,981,000
Republic of Bulgaria 6.69% 2024(1).......................... 450,000 309,375
Republic of Colombia 12.24% 2005............................ 3,180,000 2,782,500
Republic of Ecuador 6.63% 2025.............................. 720,000 351,000
Republic of Panama 4.00% 2016............................... 673,470 498,368
Republic of Panama 8.88% 2027*.............................. 440,000 387,200
Republic of Peru 3.25% 2017*................................ 1,980,000 1,002,375
Republic of Venezuela 5.94% 2007*(1)........................ 1,714,280 1,015,711
Russia Federation Ministry of Finance 3.00% 2003*........... 1,000 70
Russia Interest Notes 6.97% 2015(1)......................... 123 12
United Mexican States 8.63% 2008............................ 4,790,000 4,370,875
United Mexican States 9.88% 2007............................ 2,450,000 2,425,500
United Mexican States 11.38% 2016........................... 2,960,000 3,048,800
-------------
42,901,984
-------------
REAL ESTATE -- 0.5%
Real Estate Companies -- 0.5%
CB Richards Ellis Services, Inc. 8.88% 2006................. 200,000 202,000
Glencore Nickel Property Ltd. 9.00% 2014.................... 380,000 326,800
-------------
528,800
-------------
UTILITIES -- 5.1%
Electric Utilities -- 2.7%
AES Corp. 8.50% 2007........................................ 490,000 492,450
CMS Energy Corp. 7.50% 2009................................. 445,000 460,417
Empresa Nacional De Electricidad SA 7.75% 2008.............. 840,000 791,549
Korea Electric Power Corp. 6.38% 2003....................... 1,500,000 1,316,985
Niagara Mohawk Power Corp. 7.75% 2008....................... 126,000 139,048
Electronics -- 0.2%
Samsung Electronics Ltd. 7.45% 2002*........................ 255,000 235,832
Gas & Pipeline Utilities -- 0.3%
Ras Laffan Liquefied Natural Gas Co. 8.29% 2014*............ 365,000 340,684
</TABLE>
- ---------------------
26
<PAGE> 28
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Telephone -- 1.9%
American Cellular Corp. 10.50% 2008*........................ $ 410,000 $ 426,400
Flag Ltd. 8.25% 2008........................................ 275,000 269,500
Iridium Capital Corp., Series A 13.00% 2005................. 450,000 409,500
Philippine Long Distance Telephone 7.85% 2007............... 650,000 559,000
PTC International Finance BV zero coupon 2007*(2)........... 800,000 576,000
-------------
6,017,365
-------------
TOTAL BONDS & NOTES (cost $113,167,011)..................... 105,830,217
-------------
LOAN AGREEMENT -- 0.8%
----------------------------------------------------------------------------------------------
LOAN AGREEMENT -- 0.8%
Foreign Government -- 0.8%
Gabon Loans 6.69% 2004 (Cost $1,826,786).................... 2,357,143 942,857
-------------
PREFERRED STOCK -- 0.7% SHARES
----------------------------------------------------------------------------------------------
INFORMATION & ENTERTAINMENT -- 0.3%
Broadcasting & Media -- 0.3%
Paxson Communications Corp. 9.75%*(5)....................... 8 77,843
Paxon Communications Corp................................... 24 211,810
-------------
289,653
INFORMATION TECHNOLOGY -- 0.4%
Software -- 0.1%
Concentric Network Corp. convertible 13.50%(5).............. 212 187,885
Telecommunications -- 0.3%
IXC Communications, Inc. convertible 12.50%(4).............. 341 332,810
Viatel, Inc., Series A...................................... 139 16,333
-------------
537,028
-------------
TOTAL PREFERRED STOCK (cost $851,627)....................... 826,681
-------------
<CAPTION>
WARRANTS -- 0.0%+ WARRANTS
----------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL -- 0.0%
Business Services -- 0.0%
Nokornthai Strip Ml Public Ltd. 2/01/08..................... 170,935 1,710
-------------
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. 12/15/07........................... 175 29,750
Wam-Net, Inc. 3/01/05*...................................... 1,200 12
</TABLE>
---------------------
27
<PAGE> 29
<TABLE>
<CAPTION>
WARRANTS (CONTINUED) WARRANTS VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Telecommunications -- 0.0%
American Mobile Satellite Co. 4/01/08....................... 415 $ 1,951
Onepoint Communications Corp. 6/01/08....................... 370 374
Rythms Netconnections, Inc. 5/15/08......................... 4,400 8,800
-------------
40,887
-------------
TOTAL WARRANTS (cost $888).................................. 42,597
-------------
TOTAL INVESTMENT SECURITIES (cost $115,846,312)............. 107,642,352
-------------
PRINCIPAL
SHORT-TERM SECURITIES -- 2.6% AMOUNT
----------------------------------------------------------------------------------------------
FOREIGN SHORT-TERM NOTES -- 2.6%
Export Import Bank Korea 6.50% due 10/06/99 Series B........ $ 1,800,000 1,779,480
Jamaica Government Bonds 12.00% due 7/19/99................. 1,000,000 970,000
Mosaic Re Ltd. 10.10% due 7/09/99(1) Class A................ 300,000 304,050
-------------
TOTAL SHORT-TERM SECURITIES (cost $3,042,771)............... 3,053,530
-------------
REPURCHASE AGREEMENT -- 3.4%
----------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 3.4%
Agreement with State Street Bank & Trust Co., bearing
interest at 4.0% dated 01/29/99 to be repurchased 02/01/99
in the amount of $3,968,322 and collateralized by
$3,100,000 of U.S. Treasury Bonds, bearing interest at
11.125% due 8/15/14 and having an approximate aggregate
value of $4,049,911 (cost $3,967,000)@.................... 3,967,000 3,967,000
-------------
TOTAL INVESTMENTS --
(cost $122,856,083) 98.0% 114,662,882
Other assets less liabilities -- 2.0 2,313,702
------ -------------
NET ASSETS -- 100.0% $ 116,976,584
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
@ The Security or a portion thereof represent collateral for the
following open futures contracts:
(1) Variable rate security; rate as of January 31, 1999
(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
- ---------------------
28
<PAGE> 30
Allocation of investments as a percentage of net assets by country as of
January 31, 1999:
<TABLE>
<S> <C>
United States............................................... 35.4%
Mexico...................................................... 12.0%
Argentina................................................... 11.8%
Brazil...................................................... 8.6%
Bulgaria.................................................... 2.8%
Colombia.................................................... 2.8%
South Korea................................................. 2.8%
Philippines................................................. 2.2%
Netherlands................................................. 1.9%
United Kingdom.............................................. 1.9%
Canada...................................................... 1.4%
Russia...................................................... 1.4%
Jamaica..................................................... 1.3%
India....................................................... 1.1%
Peru........................................................ 0.9%
Venezuela................................................... 0.9%
Gabon....................................................... 0.8%
Panama...................................................... 0.8%
Cayman Island............................................... 0.7%
Chile....................................................... 0.7%
Australia................................................... 0.6%
Jordan...................................................... 0.4%
Nigeria..................................................... 0.4%
Ecuador..................................................... 0.3%
Qatar....................................................... 0.3%
Bermuda..................................................... 0.2%
Turkey...................................................... 0.2%
----
94.6%
====
</TABLE>
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
------------------------------------------------------------------------------------
NUMBER OF EXPIRATION VALUE AT VALUE AS OF UNREALIZED
CONTRACTS DESCRIPTION DATE TRADE DATE JANUARY 31, 1999 DEPRECIATION
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
8 Short Long Gilt March 1999 $1,522,688 $1,580,505 ($57,817 )
========
</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>
EUR 175,000 USD 202,843 4/13/99 $ 3,144
EUR 275,000 USD 320,238 4/26/99 6,208
EUR 560,000 USD 649,992 4/27/99 10,479
EUR 150,000 USD 171,885 4/27/99 586
--------
$20,417
--------
</TABLE>
<TABLE>
<CAPTION>
GROSS UNREALIZED
DEPRECIATION
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
GBP 680,000 USD 1,117,900 3/3/99 (262)
GBP 160,000 USD 262,664 3/3/99 (433)
--------
(695)
--------
Net Unrealized Appreciation............. $19,722
========
</TABLE>
----------------------
EUR - Euro Dollar
GBP - Pound Sterling
USD - United States Dollar
See Notes to Financial Statements.
---------------------
29
<PAGE> 31
- ---------------------
SUNAMERICA SERIES TRUST
SUNAMERICA BALANCED
PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK -- 61.5% SHARES VALUE
<S> <C> <C>
-----------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY -- 8.2%
Apparel & Textiles -- 0.4%
Gucci Group NV.............................................. 12,000 $ 825,750
Automotive -- 2.4%
Daimler Chrysler AG......................................... 15,000 1,553,437
Ford Motor Co. ............................................. 30,000 1,843,125
General Motors Corp. ....................................... 13,000 1,166,750
Housing -- 1.1%
Champion Enterprises, Inc.+................................. 15,000 350,625
Home Depot, Inc. ........................................... 30,000 1,811,250
Retail -- 4.3%
CVS Corp. .................................................. 26,000 1,423,500
Dayton Hudson Corp. ........................................ 20,000 1,275,000
Gap, Inc. .................................................. 34,500 2,214,469
Wal-Mart Stores, Inc. ...................................... 40,000 3,440,000
-------------
15,903,906
-------------
CONSUMER STAPLES -- 1.1%
Food, Beverage & Tobacco -- 1.1%
Philip Morris Cos., Inc. ................................... 45,700 2,147,900
-------------
ENERGY -- 3.1%
Energy Services -- 0.7%
Halliburton Co. ............................................ 20,000 593,750
Schlumberger Ltd. .......................................... 15,000 714,375
Energy Sources -- 2.4%
Burlington Resources, Inc. ................................. 25,000 756,250
Chevron Corp. .............................................. 15,000 1,121,250
Mobil Corp. ................................................ 20,000 1,753,750
Royal Dutch Petroleum Co.................................... 25,800 1,033,612
-------------
5,972,987
-------------
FINANCE -- 11.1%
Banks -- 4.4%
Bank of New York Co., Inc. ................................. 30,000 1,065,000
Chase Manhattan Corp. ...................................... 30,000 2,308,125
First Union Corp. .......................................... 35,000 1,841,875
Mellon Bank Corp. .......................................... 15,000 1,005,000
Summit Bancorp.............................................. 60,000 2,448,750
Financial Services -- 6.1%
American Express Co. ....................................... 20,000 2,057,500
Associates First Capital Corp., Class A..................... 30,000 1,216,875
Capital One Financial Corp. ................................ 15,000 1,985,625
Citigroup, Inc. ............................................ 37,500 2,102,344
Federal Home Loan Mortgage Corp. ........................... 20,000 1,240,000
PaineWebber Group, Inc. .................................... 10,000 371,875
</TABLE>
- ---------------------
30
<PAGE> 32
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Providian Financial Corp. .................................. 25,500 $ 2,570,718
ReliaStar Financial Corp. .................................. 9,300 385,369
Insurance -- 0.6%
American General Corp. ..................................... 15,000 1,069,688
-------------
21,668,744
-------------
HEALTHCARE -- 7.5%
Drugs -- 4.7%
Bristol-Myers Squibb Co. ................................... 5,000 640,938
Merck & Co., Inc. .......................................... 15,000 2,201,250
Pfizer, Inc. ............................................... 25,000 3,215,625
Schering-Plough Corp. ...................................... 30,000 1,635,000
Warner-Lambert Co. ......................................... 20,000 1,443,750
Medical Products -- 2.8%
Amgen, Inc.+................................................ 10,000 1,278,125
Biogen, Inc.+............................................... 7,500 736,875
Genzyme Corp.+.............................................. 15,000 817,500
Genzyme Molecular Oncology+................................. 1 2
Johnson & Johnson Co. ...................................... 31,000 2,635,000
-------------
14,604,065
-------------
INDUSTRIAL & COMMERCIAL -- 2.9%
Aerospace & Military Technology -- 0.8%
United Technologies Corp. .................................. 13,000 1,552,688
Electrical Equipment -- 1.9%
General Electric Co. ....................................... 35,000 3,670,625
Transportation -- 0.2%
Burlington Northern Santa Fe Corp. ......................... 15,000 519,375
-------------
5,742,688
-------------
INFORMATION & ENTERTAINMENT -- 3.4%
Broadcasting & Media -- 2.8%
CBS Corp.................................................... 40,000 1,360,000
Clear Channel Communications, Inc.+......................... 25,000 1,546,875
Infinity Broadcasting Corp., Class A........................ 16,000 443,000
Time Warner, Inc. .......................................... 35,000 2,187,500
Entertainment Products -- 0.2%
Oakley, Inc.+............................................... 47,000 378,937
Leisure & Tourism -- 0.4%
Carnival Corp., Class A..................................... 16,000 785,000
-------------
6,701,312
-------------
INFORMATION TECHNOLOGY -- 18.4%
Computers & Business Equipment -- 9.6%
Cisco Systems, Inc.+........................................ 36,000 4,016,250
Dell Computer Corp.+........................................ 35,000 3,500,000
EMC Corp.+.................................................. 25,000 2,721,875
Hewlett-Packard Co. ........................................ 25,000 1,959,375
International Business Machines Corp. ...................... 22,950 4,205,587
Sun Microsystems, Inc.+..................................... 20,000 2,235,000
Electronics -- 4.2%
Intel Corp. ................................................ 30,000 4,228,125
Motorola, Inc. ............................................. 20,000 1,445,000
Texas Instruments, Inc. .................................... 25,000 2,471,875
</TABLE>
---------------------
31
<PAGE> 33
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Software -- 2.2%
Microsoft Corp.+............................................ 25,000 $ 4,375,000
Telecommunications -- 2.4%
Comcast Corp., Class A...................................... 40,000 2,719,375
Lucent Technologies, Inc. .................................. 17,000 1,913,563
-------------
35,791,025
-------------
MATERIALS -- 0.8%
Chemicals -- 0.4%
(E.I.) du Pont de Nemours & Co. ............................ 15,000 767,813
Forest Products -- 0.4%
Weyerhaeuser Co. ........................................... 15,000 811,875
-------------
1,579,688
-------------
UTILITIES -- 5.0%
Electric Utilities -- 0.3%
PECO Energy Co. ............................................ 15,000 572,812
Gas & Pipeline Utilities -- 0.7%
Enron Corp. ................................................ 20,000 1,320,000
Telephone -- 4.0%
AT&T Corp. ................................................. 45,000 4,083,750
MCI WorldCom, Inc.+......................................... 47,000 3,748,250
-------------
9,724,812
-------------
TOTAL COMMON STOCK (cost $90,862,715)....................... 119,837,127
-------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 28.6% AMOUNT
-----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 0.4%
Automotive -- 0.4%
Chrysler Corp. 7.45% 2027................................... $ 750,000 879,037
-------------
FINANCE -- 1.9%
Financial Services -- 1.9%
CS First Boston Mortgage Securities Corp. 6.48% 2008........ 2,500,000 2,597,656
Morgan Stanley, Dean Witter & Co. 6.88% 2007................ 1,000,000 1,062,380
-------------
3,660,036
-------------
INFORMATION TECHNOLOGY -- 0.5%
Electronics -- 0.5%
Texas Instruments, Inc. 6.13% 2006.......................... 1,000,000 1,017,560
-------------
U.S. GOVERNMENT & AGENCIES -- 25.8%
Federal National Mortgage Association -- 2.2%
5.75% 2003.................................................. 3,385,000 3,481,777
5.75% 2008.................................................. 750,000 778,005
Overseas Private Investment Corp. -- 2.4%
6.99% 2009.................................................. 4,435,000 4,684,247
Small Business Administration -- 1.0%
6.30% 2018.................................................. 1,949,780 1,996,088
</TABLE>
- ---------------------
32
<PAGE> 34
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT & AGENCIES (continued)
U.S. Treasury Bonds & Notes -- 20.2%
4.25% due 2003.............................................. $ 7,000,000 $ 6,915,790
4.63% due 2000.............................................. 16,000,000 16,000,000
4.75% due 2008.............................................. 5,500,000 5,543,835
5.25% due 2028.............................................. 5,600,000 5,737,368
5.63% due 2001.............................................. 5,000,000 5,112,500
-------------
50,249,610
-------------
TOTAL BONDS & NOTES (cost $55,368,863)...................... 55,806,243
-------------
TOTAL INVESTMENT SECURITIES (cost $146,231,578)............. 175,643,370
-------------
REPURCHASE AGREEMENT -- 9.1%
-----------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 9.1%
Joint Repurchase Agreement Account (Note 3)
(cost $17,738,000)........................................ 17,738,000 17,738,000
-------------
TOTAL INVESTMENTS --
(cost $163,969,578) 99.2% 193,381,370
Other assets less liabilities -- 0.8 1,496,429
------ -------------
NET ASSETS -- 100.0% $194,877,799
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
See Notes to Financial Statements.
---------------------
33
<PAGE> 35
- ---------------------
SUNAMERICA SERIES TRUST
MFS TOTAL RETURN PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK -- 50.1% SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 4.2%
Automotive -- 1.1%
Ford Motor Co. ............................................. 4,000 $ 245,750
TRW, Inc. .................................................. 13,500 648,844
Volvo AB, Class B ADR....................................... 25,000 675,000
Housing -- 0.2%
Home Depot, Inc. ........................................... 6,100 368,287
Retail -- 2.9%
American Stores Co. ........................................ 20,500 743,125
CVS Corp. .................................................. 6,700 366,825
Dayton Hudson Corp. ........................................ 17,500 1,115,625
Fred Meyer, Inc.+........................................... 21,890 1,368,125
Rite Aid Corp. ............................................. 12,600 618,975
-------------
6,150,556
-------------
CONSUMER STAPLES -- 4.7%
Food, Beverage & Tobacco -- 4.5%
Anheuser-Busch Cos., Inc. .................................. 13,100 926,006
Archer-Daniels-Midland Co. ................................. 46,000 695,750
General Mills, Inc. ........................................ 8,500 713,469
Hershey Foods Corp. ........................................ 11,300 635,625
Hormel Foods Corp. ......................................... 9,000 316,687
Kimberly-Clark Corp. ....................................... 14,000 697,375
Nestle SA registered+....................................... 420 770,084
PepsiCo, Inc. .............................................. 12,000 468,750
Philip Morris Cos., Inc..................................... 25,800 1,212,600
Household Products -- 0.2%
Gillette Co. ............................................... 5,500 323,125
-------------
6,759,471
-------------
ENERGY -- 4.3%
Energy Services -- 1.1%
Coastal Corp. .............................................. 35,500 1,058,344
Schlumberger Ltd. .......................................... 11,600 552,450
Energy Sources -- 3.2%
BP Amoco PLC. ADR........................................... 22,975 1,863,847
Conoco, Inc., Class A+...................................... 15,000 299,063
Exxon Corp. ................................................ 6,000 422,625
Mobil Corp. ................................................ 10,200 894,412
Texaco, Inc. ............................................... 11,000 521,125
Unocal Corp. ............................................... 20,000 570,000
-------------
6,181,866
-------------
FINANCE -- 11.8%
Banks -- 2.3%
Bank of New York Co., Inc. ................................. 6,000 213,000
Bank One Corp. ............................................. 8,170 427,904
BankAmerica Corp. .......................................... 6,526 436,426
ING Groep N.V. ............................................. 16,000 947,000
Mellon Bank Corp. .......................................... 12,800 857,600
</TABLE>
- ---------------------
34
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Banks (continued)
U.S. Bancorp................................................ 15,000 $ 505,313
Financial Services -- 5.2%
American Express Co. ....................................... 12,000 1,234,500
Associates First Capital Corp., Class A..................... 21,500 872,094
Citigroup, Inc. ............................................ 20,800 1,166,100
Edwards (A.G.), Inc. ....................................... 18,500 626,687
Federal Home Loan Mortgage Corp. ........................... 15,200 942,400
Morgan Stanley, Dean Witter & Co. .......................... 11,300 980,981
ReliaStar Financial Corp. .................................. 7,000 290,063
Transamerica Corp. ......................................... 15,000 840,000
Wells Fargo Co. ............................................ 19,000 663,812
Insurance -- 4.3%
Allstate Corp. ............................................. 10,400 390,650
Chubb Corp. ................................................ 5,500 323,125
CIGNA Corp. ................................................ 3,000 247,125
Equitable Cos., Inc. ....................................... 30,700 2,141,325
Hartford Financial Services, Inc. .......................... 11,900 618,056
Jefferson Pilot Corp. ...................................... 6,000 454,500
Lincoln National Corp. ..................................... 17,500 1,457,969
UNUM Corp. ................................................. 8,900 537,894
-------------
17,174,524
-------------
HEALTHCARE -- 3.7%
Drugs -- 3.2%
American Home Products Corp. ............................... 15,000 880,313
Bristol-Myers Squibb Co. ................................... 8,600 1,102,413
Cardinal Health, Inc., Class A.............................. 3,850 284,659
Glaxo Wellcome PLC ADR...................................... 13,300 902,738
Pfizer, Inc. ............................................... 1,000 128,625
Schering-Plough Corp. ...................................... 5,800 316,100
SmithKline Beecham PLC ADR.................................. 14,500 983,281
Health Services -- 0.3%
Columbia/HCA Healthcare Corp. .............................. 28,000 507,500
Medical Products -- 0.2%
Baxter International, Inc. ................................. 4,400 312,125
-------------
5,417,754
-------------
INDUSTRIAL & COMMERCIAL -- 3.6%
Aerospace & Military Technology -- 1.7%
Allied Signal, Inc. ........................................ 22,000 858,000
General Dynamics Corp. ..................................... 10,300 598,688
Raytheon Co., Class A....................................... 13,000 724,750
United Technologies Corp. .................................. 2,000 238,875
Business Services -- 0.4%
ServiceMaster Co. .......................................... 12,500 238,281
Waste Management, Inc. ..................................... 6,900 344,569
Electrical Equipment -- 0.2%
General Electric Co. ....................................... 3,000 314,625
Machinery -- 0.3%
Illinois Tool Works, Inc. .................................. 6,700 404,094
Multi-Industry -- 0.2%
Tyco International Ltd. .................................... 3,700 285,131
</TABLE>
---------------------
35
<PAGE> 37
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Transportation -- 0.8%
Burlington Northern Santa Fe Corp. ......................... 9,200 $ 318,550
Canadian National Railway Co. .............................. 9,000 481,500
Norfolk Southern Corp. ..................................... 16,500 454,781
-------------
5,261,844
-------------
INFORMATION & ENTERTAINMENT -- 3.4%
Broadcasting & Media -- 1.9%
CBS Corp.+.................................................. 7,200 244,800
Gannett Co., Inc. .......................................... 6,000 394,875
MediaOne Group, Inc.+....................................... 7,400 414,863
New York Times Co., Class A................................. 12,000 411,750
Time Warner, Inc. .......................................... 20,000 1,250,000
Entertainment Products -- 0.2%
Eastman Kodak Co. .......................................... 5,400 353,025
Leisure & Tourism -- 1.3%
The Walt Disney Co. ........................................ 10,000 330,000
McDonald's Corp. ........................................... 14,900 1,174,306
MGM Grand, Inc.+............................................ 10,000 304,375
-------------
4,877,994
-------------
INFORMATION TECHNOLOGY -- 3.7%
Communication Equipment -- 0.2%
Alcatel Alsthom ADR......................................... 10,000 230,000
Computers & Business Equipment -- 1.8%
Hewlett-Packard Co. ........................................ 3,700 289,987
International Business Machines Corp. ...................... 4,900 897,925
Staples, Inc.+.............................................. 23,550 674,119
Xerox Corp. ................................................ 5,900 731,600
Electronics -- 0.7%
Emerson Electric Co. ....................................... 14,000 814,625
Motorola, Inc. ............................................. 3,700 267,325
Telecommunications -- 1.0%
AirTouch Communications, Inc.+.............................. 3,000 289,688
ALLTEL Corp. ............................................... 7,000 451,937
Liberty Media Group, Series A+.............................. 4,450 238,075
Telephone & Data Systems, Inc. ............................. 9,000 479,250
-------------
5,364,531
-------------
MATERIALS -- 2.4%
Chemicals -- 0.6%
Akzo Nobel NV............................................... 15,000 600,204
du Pont (E.I.) de Nemours & Co. ............................ 6,500 332,719
Forest Products -- 1.3%
Bowater, Inc. .............................................. 12,000 468,750
Champion International Corp. ............................... 15,000 525,938
Weyerhaeuser Co. ........................................... 15,900 860,587
Metals & Minerals -- 0.5%
Alcoa, Inc. ................................................ 8,500 710,812
-------------
3,499,010
-------------
REAL ESTATE -- 0.2%
Real Estate Investment Trusts -- 0.2%
TriNet Corporate Realty Trust, Inc. ........................ 13,500 359,437
-------------
</TABLE>
- ---------------------
36
<PAGE> 38
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 8.1%
Electric Utilities -- 2.6%
Carolina Power & Light Co. ................................. 17,500 $ 728,437
CMS Energy Corp. ........................................... 8,500 363,906
DPL, Inc. .................................................. 15,000 284,063
GPU, Inc. .................................................. 13,000 554,125
PECO Energy Co. ............................................ 11,000 420,063
Pinnacle West Capital Corp. ................................ 17,000 680,000
Sierra Pacific Resources Co. ............................... 8,000 296,000
Southern Co. ............................................... 17,000 457,937
Gas & Pipeline Utilities -- 1.1%
Columbia Gas Energy Group, Inc. ............................ 13,000 672,750
Eastern Enterprises......................................... 9,000 362,250
UGI Corp. .................................................. 10,000 219,375
Washington Gas Light Co. ................................... 10,000 240,000
Telephone -- 4.4%
AT&T Corp. ................................................. 8,500 771,375
Bell Atlantic Corp. ........................................ 9,000 540,000
BellSouth Corp. ............................................ 15,400 687,225
GTE Corp. .................................................. 30,500 2,058,750
SBC Communications, Inc. ................................... 24,100 1,301,400
Sprint Corp. ............................................... 13,500 1,127,250
-------------
11,764,906
-------------
TOTAL COMMON STOCK (cost $70,361,242)....................... 72,811,893
-------------
<CAPTION>
PREFERRED STOCK 1.7%
-----------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 0.9%
Financial Services -- 0.5%
Newell Financial Trust I 5.25%.............................. 13,500 722,250
Insurance -- 0.4%
Lincoln National Corp. 7.75% ............................... 23,000 573,563
-------------
1,295,813
-------------
INDUSTRIAL & COMMERCIAL -- 0.4%
Transportation -- 0.4%
Union Pacific Capital Trust 6.25%........................... 12,500 609,375
UTILITIES -- 0.4%
Electric Utilities -- 0.4%
Texas Utilities Co. 9.25%................................... 10,000 553,750
-------------
TOTAL PREFERRED STOCK (cost $2,443,538)..................... 2,458,938
-------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 39.5% AMOUNT
-----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 1.6%
Automotive -- 1.4%
Federal Mogul Corp. 7.75% 2006.............................. $ 2,000,000 2,032,300
Retail -- 0.2%
Fred Meyer, Inc. 7.45% 2008................................. 325,000 356,304
-------------
2,388,604
-------------
</TABLE>
---------------------
37
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<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 8.4%
Banks -- 1.4%
Providian National Bank 6.65% 2004.......................... $ 1,000,000 $ 1,001,250
Riggs National Corp. 9.65% 2009............................. 550,000 627,627
SB Treasury Co. LLC 9.40% 2008*(1).......................... 390,000 362,700
Financial Services -- 7.0%
AT&T Capital Corp. 6.75% 2002............................... 500,000 499,750
Aesop Funding II LLC 6.40% 2003*............................ 600,000 615,390
Aristar, Inc. 5.85% 2004.................................... 1,000,000 1,000,886
Bell Atlantic Financial Services Inc. 4.25% 2005*........... 400,000 461,000
Capita Equipment Receivables Corp Trust 6.45% 2002.......... 360,000 365,789
Copelco Capital Funding Corp. 5.78% 2001.................... 750,000 754,185
CS First Boston Mortgage Securities Corp. 7.18% 2027........ 271,799 280,912
Fleetwood Credit Grantor Trust 6.90% 2012................... 49,742 50,855
Ford Motor Credit Co. 5.80% 2009............................ 1,000,000 1,003,490
Midland Funding Corp. 11 13.25% 2006........................ 100,000 128,025
Natexis Ambs Co. LLC 8.44% 2049*(1)......................... 1,000,000 944,259
Residential Asset Securitization Trust 8.00% 2026........... 30,982 31,046
Residential Funding Mortgage Securities 7.25% 2026.......... 290,402 293,224
RGS Aegco Funding Corp. 9.81% 2022.......................... 999,348 1,327,784
Structured Asset Securities Corp. 6.95% 2007................ 140,000 148,456
Structured Asset Securities Corp. 7.00% 2026................ 300,000 310,422
TCI Communications Financing III 9.65% 2027................. 1,000,000 1,271,150
Triangle Funding Ltd. 6.88% 2004*........................... 750,000 747,305
-------------
12,225,505
-------------
HEALTHCARE -- 0.6%
Health Services -- 0.3%
Tenet Healthcare Corp. 8.13% 2008*.......................... 500,000 518,010
Medical Products -- 0.3%
Boston Scientific Corp. 6.63% 2005.......................... 425,000 409,832
-------------
927,842
-------------
INDUSTRIAL & COMMERCIAL -- 0.0%
Transportation -- 0.0%
Compania Sud Americana de Vapores SA 7.38% 2003............. 50,000 44,430
-------------
INFORMATION & ENTERTAINMENT -- 1.4%
Broadcasting & Media -- 0.7%
Continental Cablevision, Inc. 11.00% 2007................... 1,000,000 1,071,040
Leisure & Tourism -- 0.7%
Continental Airlines Pass Through Trust 6.55% 2020.......... 1,000,000 1,006,853
-------------
2,077,893
-------------
INFORMATION TECHNOLOGY -- 0.3%
Computers & Business Equipment -- 0.3%
Xerox Corp. zero coupon 2018................................ 600,000 374,250
-------------
U.S. GOVERNMENT & AGENCIES -- 24.3%
U.S. Government & Agencies -- 24.3%
Government National Mortgage Association 7.00% 2027......... 2,060,000 2,110,202
Government National Mortgage Association 7.50% 2026......... 1,616,000 1,669,021
United States Treasury Bonds 5.25% 2003-2028................ 11,662,000 11,951,549
United States Treasury Bonds 6.38% 2027..................... 1,000,000 1,157,500
United States Treasury Notes 4.25% 2003..................... 8,000,000 7,903,760
United States Treasury Notes 4.63% 2000..................... 250,000 250,000
</TABLE>
- ---------------------
38
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<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT & AGENCIES (continued)
U.S. Government & Agencies (Continued)
United States Treasury Notes 5.63% 2008..................... $ 1,544,000 $ 1,646,290
Government National Mortgage Association 6.50%
2023 -- 2028.............................................. 4,297,301 4,346,842
United States Treasury Notes 5.50% 2003..................... 3,615,000 3,737,585
United States Treasury Notes 6.88% 2000..................... 450,000 461,038
-------------
35,233,787
-------------
UTILITIES -- 2.9%
Electric Utilities -- 2.1%
CMS Energy Corp. 6.75% 2004................................. 1,000,000 1,000,000
Niagara Mohawk Power Corp. 7.25% 2002....................... 1,000,000 1,029,620
Toledo Edison Co. 7.88% 2004................................ 1,000,000 1,044,220
Gas & Pipeline Utilities -- 0.8%
Tennessee Gas Pipeline Co. 7.63% 2037....................... 500,000 559,375
Texas Gas Transmission Corp. 7.25% 2027..................... 550,000 578,936
-------------
4,212,151
-------------
TOTAL BONDS & NOTES (cost $57,097,409)...................... 57,484,462
-------------
<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(2)............................ 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(2)............................ 535 0
-------------
TOTAL INVESTMENT SECURITIES (cost $129,902,189)............. 132,755,293
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 11.9% AMOUNT
-----------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 6.4%
Student Loan Marketing Discount Note 4.62% due 2/01/99...... $ 9,300,000 9,300,000
-------------
</TABLE>
---------------------
39
<PAGE> 41
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES (CONTINUED) AMOUNT VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
FEDERAL AGENCY OBLIGATIONS -- 5.5%
Federal Home Loan Bank Consolidated Discount Note 4.73% due
2/05/99................................................... $ 5,200,000 $ 5,197,267
Federal Home Loan Mortgage Discount Notes 4.71% due
2/10/99................................................... 2,800,000 2,796,703
-------------
7,993,970
-------------
TOTAL SHORT-TERM SECURITIES (cost $17,293,970).............. 17,293,970
-------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS --
(cost $147,196,159) 103.2% 150,049,263
Liabilities in excess of other assets -- (3.2) (4,717,195)
------ -------------
NET ASSETS -- 100.0% $ 145,332,068
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
ADR -- American Depository Receipt
(1) Variable rate security; rate as of January 31, 1999
(2) Fair valued security; see Note 2
See Notes to Financial Statements.
- ---------------------
40
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- ---------------------
SUNAMERICA SERIES TRUST
ASSET ALLOCATION PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK -- 59.8% SHARES VALUE
--------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 5.3%
Automotive -- 3.7%
General Motors Corp. ....................................... 154,900 $ 13,902,275
General Motors Corp., Class H............................... 130,700 6,436,975
Goodyear Tire & Rubber Co. ................................. 5,000 245,000
Lear Corp.+................................................. 3,200 126,000
Magna International, Inc., Class A.......................... 23,500 1,395,313
Volvo AB ADR................................................ 178,400 4,816,800
Retail -- 1.6%
Federated Department Stores, Inc.+.......................... 119,400 4,992,413
Sears, Roebuck & Co. ....................................... 169,900 6,817,237
-------------
38,732,013
-------------
CONSUMER STAPLES -- 3.8%
Food, Beverage & Tobacco -- 3.8%
Archer-Daniels-Midland Co. ................................. 485,000 7,335,625
Philip Morris Cos., Inc. ................................... 263,500 12,384,500
RJR Nabisco Holdings Corp. ................................. 276,900 7,476,300
-------------
27,196,425
-------------
ENERGY -- 7.3%
Energy Services -- 1.9%
Baker Hughes, Inc. ......................................... 324,000 5,467,500
Tosco Corp. ................................................ 139,100 3,025,425
Transocean Offshore, Inc. .................................. 199,100 5,089,494
Energy Sources -- 5.4%
Atlantic Richfield Co. ..................................... 148,000 8,491,500
Elf Aquitaine SA ADR........................................ 99,800 5,451,575
Exxon Corp. ................................................ 106,200 7,480,462
Occidental Petroleum Corp. ................................. 228,400 3,440,275
Royal Dutch Petroleum Co. .................................. 199,700 8,000,481
Texaco, Inc. ............................................... 84,300 3,993,713
USX-Marathon Group, Inc. ................................... 106,500 2,422,875
-------------
52,863,300
-------------
FINANCE -- 16.1%
Banks -- 6.0%
Bank One Corp. ............................................. 237,800 12,454,775
BankAmerica Corp. .......................................... 184,700 12,351,812
Chase Manhattan Corp. ...................................... 100,900 7,762,994
First Union Corp. .......................................... 201,500 10,603,938
Financial Services -- 2.4%
CIT Group, Inc., Class A.................................... 243,200 7,752,000
Dun & Bradstreet Corp. ..................................... 161,100 4,913,550
Torchmark, Inc. ............................................ 69,800 2,290,312
Wells Fargo Co. ............................................ 63,700 2,225,519
Insurance -- 7.7%
Aetna, Inc. ................................................ 154,500 13,924,312
Allstate Corp. ............................................. 227,000 8,526,688
CIGNA Corp. ................................................ 99,600 8,204,550
</TABLE>
---------------------
41
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
--------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance (continued)
Hartford Financial Services Group, Inc. .................... 191,100 $ 9,925,256
Loews Corp. ................................................ 121,900 10,262,456
Provident Cos., Inc. ....................................... 118,000 5,059,250
-------------
116,257,412
-------------
HEALTHCARE -- 2.8%
Drugs -- 0.9%
American Home Products Corp. ............................... 105,200 6,173,925
Health Services -- 1.6%
Columbia/HCA Healthcare Corp. .............................. 184,500 3,344,062
Tenet Healthcare Corp.+..................................... 403,700 8,376,775
Medical Products -- 0.3%
Baxter International, Inc. ................................. 35,700 2,532,469
-------------
20,427,231
-------------
INDUSTRIAL & COMMERCIAL -- 7.2%
Aerospace & Military Technology -- 3.4%
Lockheed Martin Corp. ...................................... 228,800 8,065,200
Northrop Grumman Corp. ..................................... 105,200 5,996,400
Raytheon Co., Class A....................................... 183,700 10,241,275
Business Services -- 2.0%
Browning-Ferris Industries, Inc. ........................... 240,800 6,622,000
First Data Corp. ........................................... 89,700 3,436,631
Waste Management, Inc. ..................................... 86,300 4,309,606
Machinery -- 0.7%
Federal-Mogul Corp. ........................................ 91,500 5,421,375
Multi-Industry -- 0.6%
Corning, Inc. .............................................. 88,800 4,329,000
Transportation -- 0.5%
Burlington Northern Santa Fe Corp. ......................... 114,800 3,974,950
-------------
52,396,437
-------------
INFORMATION & ENTERTAINMENT -- 5.2%
Broadcasting & Media -- 0.8%
New York Times Co., Class A................................. 171,400 5,881,163
Entertainment Products -- 2.0%
Hasbro, Inc. ............................................... 249,000 9,259,687
Toys "R" Us, Inc.+.......................................... 325,300 4,879,500
Leisure & Tourism -- 2.4%
Hilton Hotels Corp. ........................................ 402,200 5,806,762
Mirage Resorts, Inc.+....................................... 396,700 5,677,769
Park Place Entertainment Corp. ............................. 173,600 1,182,650
Tricon Global Restaurants, Inc.+............................ 98,400 4,680,150
-------------
37,367,681
-------------
INFORMATION TECHNOLOGY -- 3.1%
Computers & Business Equipment -- 1.3%
Hewlett-Packard Co. ........................................ 36,200 2,837,175
International Business Machines Corp. ...................... 37,700 6,908,525
</TABLE>
- ---------------------
42
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
--------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Telecommunications -- 1.8%
BCE, Inc. .................................................. 197,500 $ 8,813,438
Tele-Communications, Inc., Series A+........................ 57,300 3,928,631
-------------
22,487,769
-------------
MATERIALS -- 2.9%
Forest Products -- 2.3%
Georgia-Pacific Corp.+...................................... 103,000 6,643,500
Georgia-Pacific Timber Group+............................... 263,400 5,926,500
Smurfit Stone Container Corp. .............................. 277,000 4,466,625
Metals & Minerals -- 0.6%
Crown, Cork & Seal Co., Inc. ............................... 132,500 4,198,594
-------------
21,235,219
-------------
UTILITIES -- 6.1%
Electric Utilities -- 3.6%
Entergy Corp. .............................................. 249,100 7,332,881
Northeast Utilities+........................................ 291,400 4,462,063
PacifiCorp.................................................. 306,300 6,298,294
Unicom Corp. ............................................... 211,200 7,524,000
Telephone -- 2.5%
AT&T Corp. ................................................. 105,100 9,537,825
GTE Corp. .................................................. 128,600 8,680,500
-------------
43,835,563
-------------
TOTAL COMMON STOCK (cost $426,543,533)...................... 432,799,050
-------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 28.5% AMOUNT
--------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 0.7%
Automotive -- 0.1%
Chrysler Corp. 7.45% 2027................................... $ 145,000 169,947
Chrysler Corp. 7.45% 2097................................... 190,000 219,754
Pep Boys Manny, Moe & Jack 7.00% 2005....................... 500,000 482,270
Housing -- 0.3%
Owens Corning 7.50% 2005.................................... 1,555,000 1,600,732
U.S. Home Corp. 7.95% 2001.................................. 405,000 409,050
USI American Holdings, Inc. 7.25% 2006...................... 240,000 252,382
Retail -- 0.3%
Kroger Co. 12.95% 2009(1)................................... 1,950,000 2,015,325
-------------
5,149,460
-------------
CONSUMER STAPLES -- 0.6%
Food, Beverage & Tobacco -- 0.6%
Dominos, Inc. 10.38% 2009................................... 500,000 513,750
Keebler Corp. 10.75% 2006................................... 500,000 556,250
Philip Morris Cos, Inc. 6.95% 2006.......................... 465,000 496,304
Philip Morris Cos, Inc. 7.00% 2005.......................... 800,000 853,880
RJR Nabisco, Inc. 8.00% 2001................................ 860,000 861,952
Safeway, Inc. 5.88% 2001.................................... 310,000 312,412
Safeway, Inc. 6.05% 2003.................................... 530,000 534,510
-------------
4,129,058
-------------
</TABLE>
---------------------
43
<PAGE> 45
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
<S> <C> <C>
--------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
ENERGY -- 0.4%
Energy Services -- 0.1%
Edison Mission Energy Funding Corp. 6.77% 2003*............. $ 207,427 $ 212,777
National Power 7.63% 2000................................... 620,000 613,878
Oryx Energy Co. 10.00% 2001................................. 100,000 107,345
YPF Sociedad Anonima 7.50% 2002............................. 7 6
Energy Sources -- 0.3%
Gulf Canada Resources Ltd. 9.25% 2004....................... 600,000 615,540
Petroleos Mexicanos 9.57% 1999*............................. 1,090,000 972,825
Petroleos Mexicanos 9.57% 2005.............................. 330,000 292,050
Triton Energy Ltd. 8.75% 2002............................... 325,000 315,656
-------------
3,130,077
-------------
FINANCE -- 7.6%
Banks -- 1.1%
BankAmerica Corp. 9.75% 2000................................ 400,000 423,164
Capital One Bank 6.15% 2001................................. 500,000 500,055
Capital One Bank 6.39% 2001................................. 1,000,000 990,000
Capital One Bank 6.40% 2003................................. 300,000 300,321
Capital One Bank 6.66% 2000................................. 150,000 151,917
Capital One Bank 6.88% 2000................................. 850,000 849,864
Capital One Bank 7.15% 2006................................. 1,225,000 1,232,264
Continental Bank NA 12.50% 2001............................. 450,000 514,089
Long Island Savings Bank 6.20% 2001......................... 1,500,000 1,500,690
Riggs National Corp. 9.65% 2009............................. 710,000 810,209
Security Pacific Corp. 11.50% 2000.......................... 600,000 661,416
Financial Services -- 6.4%
Americredit Automobile Recreation Trust 6.24% 2003(1)....... 2,600,000 2,634,125
Arcadia Auto Receivables Trust 5.75% 2006(1)................ 2,250,000 2,253,516
Asset Securitization Corp. 7.49% 2029(1).................... 1,450,000 1,567,812
Autoflow 1996 A Grantor Trust 7.48% 2002*(1)................ 525,335 526,648
Case Equipment Loan Trust 7.30% 2002........................ 58,963 59,197
Chase Commercial Mortgage Securities Corp. 6.56% 2030(1).... 2,500,000 2,614,844
Chase Commercial Mortgage Securities Corp. 7.37% 2007....... 2,500,000 2,709,350
Chemical Master Credit Card Trust 1 5.98% 2008.............. 1,610,000 1,627,597
Chevy Chase Auto Receivables 5.80% 2002..................... 59,856 59,968
Citibank Credit Card Master Trust I 5.80% 2005.............. 4,500,000 4,518,270
Countrywide Capital III 8.05% 2027.......................... 1,300,000 1,418,742
Countrywide Funding Corp. 6.45% 2003........................ 300,000 304,821
Countrywide Funding Corp. 6.97% 2003........................ 1,000,000 1,034,490
Credit Suisse First Boston 6.55% 2035(1).................... 2,000,000 2,067,500
Discover Card Master Trust I 5.55% 2013 Class B............. 700,000 680,092
Fasco Grantor Trust 6.65% 2001.............................. 517,050 521,238
Felcor Suites Hotels, Inc. 7.38% 2004....................... 405,000 386,346
Financiera Energetica Nacional SA 9.38% 2006................ 750,000 626,250
Fingerhut Financial Services 6.45% 2002..................... 613,333 615,437
First Union-Lehman Brothers Commercial Mortgage Trust 6.60%
2007...................................................... 2,250,000 2,351,002
First Union-Lehman Brothers Commercial Mortgage Trust 7.30%
2006...................................................... 1,050,000 1,137,686
Ford Capital BV 9.50% 2001.................................. 800,000 873,360
GE Capital Mortgage Services, Inc. 6.50% 2024............... 637,890 620,941
General Motors Acceptance Corp. 5.75% 2003.................. 1,645,000 1,661,894
H & T Master Trust 8.00% 2002*(1) Class A2.................. 900,000 900,844
Household International Netherlands B V 6.20% 2003.......... 1,440,000 1,473,595
Imc Home Equity Loan Trust 8.05% 2026(1).................... 2,000,000 2,081,875
Merrill Lynch Mortgage Investments, Inc. 6.39% 2030(1)...... 3,000,000 3,095,625
Morgan Stanley Capital I 7.46% 2006(1)...................... 1,400,000 1,526,438
NWA Trust 8.26% 2006........................................ 228,855 242,932
PXRE Capital Trust I 8.85% 2027............................. 265,000 272,603
</TABLE>
- ---------------------
44
<PAGE> 46
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
<S> <C> <C>
--------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Residential Accredit Lns Incorporated 7.75% 2027(1)......... $ 2,000,000 $ 2,062,320
Sears Credit Account Master Trust 6.20% 2006................ 700,000 709,625
Tanger Properties Ltd. 8.75% 2001........................... 1,160,000 1,207,235
Insurance -- 0.1%
Conseco, Inc. 7.88% 2000.................................... 650,000 655,759
-------------
55,033,966
-------------
HEALTHCARE -- 0.1%
Health Services -- 0.1%
Tenet Healthcare Corp. 8.00% 2005........................... 430,000 442,900
-------------
INDUSTRIAL & COMMERCIAL -- 1.2%
Aerospace & Military Technology -- 0.3%
Newport News Shipbuilding, Inc. 9.25% 2006.................. 250,000 266,250
Raytheon Co. 6.45% 2002..................................... 630,000 648,623
Raytheon Co. 6.30% 2000..................................... 920,000 931,049
Business Services -- 0.6%
Allied Waste North America Inc. 7.63% 2006.................. 500,000 516,250
Comdisco Inc. 6.13% 2003.................................... 2,070,000 2,089,748
Hertz Corp. 7.00% 2003...................................... 750,000 786,712
United Rentals, Inc. 8.80% 2008............................. 500,000 501,250
WESCO Distribution, Inc., Series B 9.13% 2008............... 250,000 253,438
Electrical Equipment -- 0.1%
Westinghouse Electric Corp. 8.88% 2001...................... 740,000 788,278
Multi-Industry -- 0.2%
Tyco International Group SA 5.88% 2004*..................... 1,765,000 1,778,802
Transportation -- 0.0%
MRS Logistica SA 10.63% 2005(1)............................. 180,000 70,200
MRS Logistica SA 10.63% 2005*............................... 230,000 107,525
-------------
8,738,125
-------------
INFORMATION & ENTERTAINMENT -- 2.3%
Broadcasting & Media -- 1.9%
Adelphia Communications Corp. 10.25% 2000................... 250,000 260,625
Chancellor Media Corp. 8.13% 2007........................... 500,000 520,000
Joseph E. Seagram & Sons, Inc. 6.25% 2001................... 575,000 578,979
News America Holdings, Inc. 8.00% 2016...................... 135,000 151,856
News America Holdings, Inc. 9.25% 2013...................... 1,540,000 1,950,441
Paramount Communications, Inc. 7.50% 2002................... 200,000 209,282
Poland Communications, Inc. 9.88% 2003...................... 160,000 141,363
Rogers Cablesystems Ltd. 9.63% 2002......................... 440,000 477,400
TCI Communciations, Inc. 8.65% 2004......................... 400,000 461,416
TCI Communications, Inc. 8.75% 2015......................... 120,000 152,374
Telewest Communications PLC zero coupon 2007................ 250,000 221,250
Time Warner, Inc. 6.85% 2026................................ 1,750,000 1,814,312
Time Warner, Inc. 7.95% 2000................................ 4,345,000 4,451,409
TKR Cable, Inc. 10.50% 2007................................. 255,000 277,154
Viacom, Inc. 6.75% 2003..................................... 2,020,000 2,091,973
Leisure & Tourism -- 0.4%
Continental Airlines, Inc. 6.54% 2009....................... 382,152 373,802
ITT Corp. 6.25% 2000........................................ 1,215,000 1,172,742
Northwest Airlines Corp. 8.97% 2015......................... 1,313,513 1,469,335
-------------
16,775,713
-------------
</TABLE>
---------------------
45
<PAGE> 47
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
<S> <C> <C>
--------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
INFORMATION TECHNOLOGY -- 1.8%
Telecommunications -- 1.8%
360 Communications Co. 7.13% 2003........................... $ 1,330,000 $ 1,405,704
Intermedia Communications, Inc. 8.60% 2008*................. 500,000 482,500
Nextel Communications, Inc. 10.13% 2004..................... 485,000 487,425
Orange PLC 8.00% 2008....................................... 750,000 780,000
Panamsat Corporation New 6.13% 2005*........................ 2,270,000 2,226,734
Tele-Communications, Inc. 7.38% 2000........................ 1,000,000 1,020,110
Tele-Communications, Inc. 8.25% 2003........................ 2,500,000 2,749,125
Tele-Communications, Inc. 9.65% 2003........................ 375,000 412,807
Worldcom, Inc. Georgia 6.13% 2001........................... 1,695,000 1,722,086
Worldcom, Inc. Georgia 6.40% 2005........................... 1,630,000 1,702,307
-------------
12,988,798
-------------
MATERIALS -- 0.1%
Metals & Minerals -- 0.1%
Ucar Global Enterprises, Inc. 12.00% 2005................... 500,000 525,000
-------------
NON-U.S. GOVERNMENT OBLIGATIONS -- 1.4%
Foreign Government -- 1.4%
Australian Government 6.75% 2006............................ 4,700,000 3,304,614
Government of Poland 3.00% 2024............................. 560,000 371,700
Government of Poland 5.00% 2014............................. 410,000 381,812
Korea Republic 8.75% 2003................................... 610,000 643,184
Philippines Republic 8.88% 2008............................. 340,000 340,000
Government of Poland zero coupon 2024....................... 230,000 163,013
Province of Quebec 13.25% 2014.............................. 625,000 682,475
Province of Quebec 7.13% 2024............................... 215,000 236,059
Province of Quebec 7.50% 2023............................... 510,000 583,864
Province of Tucuman 9.45% 2004(1)........................... 402,500 307,912
Province of Tucuman 9.45% 2004*............................. 139,619 110,648
Republic Of Colombia 7.25% 2003............................. 350,000 292,518
Republic of Panama 3.70% 2014............................... 150,000 112,125
Republic of Panama 6.19% 2002(2)............................ 1,496,950 1,407,181
State of Israel 6.38% 2005.................................. 635,000 620,433
United Mexican States 6.25% 2019(1)......................... 730,000 558,450
United Mexican States 9.88% 2007............................ 70,000 69,388
-------------
10,185,376
-------------
REAL ESTATE -- 0.2%
Real Estate Investment Trusts -- 0.2%
Chelsea GCA Realty, Inc. 7.75% 2001......................... 570,000 565,577
Liberty Property Trust 7.10% 2004........................... 215,000 207,522
Meditrust Corp. 7.38% 2000.................................. 1,150,000 1,107,807
-------------
1,880,906
-------------
U.S. GOVERNMENT & AGENCIES -- 11.4%
U.S. Government & Agencies -- 11.4%
Federal Home Loan Mortgage Corp. 6.00% 2099................. 5,000,000 5,025,000
Federal Home Loan Mortgage Corp. 6.35% 2018................. 3,000,000 3,025,290
Federal Home Loan Mortgage Corp. 6.50% 2099................. 8,000,000 8,132,480
Federal Home Loan Mortgage Corp. 7.50% 2027................. 975,377 1,004,327
Federal Home Loan Mortgage Corp. 7.50% 2027................. 685,212 705,549
Federal Home Loan Mortgage Corp. 7.50% 2028................. 1,047,963 1,079,066
Federal Home Loan Mortgage Corp. 7.50% 2028................. 718,977 740,317
Federal Home Loan Mortgage Corp. 6.00% 2013................. 698,217 701,708
Federal Home Loan Mortgage Corp. 6.00% 2099................. 6,000,000 5,940,000
Federal Home Loan Mortgage Corp. 6.50% 2028................. 482,746 487,573
</TABLE>
- ---------------------
46
<PAGE> 48
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
<S> <C> <C>
--------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
U.S. GOVERNMENT & AGENCIES (continued)
U.S. Government & Agencies (continued)
Federal Home Loan Mortgage Corp. 6.50% 2028................. $ 2,036,691 $ 2,057,058
Federal Home Loan Mortgage Corp. 6.50% 2028................. 472,329 477,052
Federal Home Loan Mortgage Corp. 6.50% 2099................. 1,000,000 1,010,000
Federal Home Loan Mortgage Corp. 7.00% 2027................. 2,901,576 2,965,033
Federal Home Loan Mortgage Corp. 7.00% 2027................. 1,094,035 1,117,962
Federal Home Loan Mortgage Corp. 7.00% 2028................. 671,106 685,783
Federal Home Loan Mortgage Corp. 7.00% 2028................. 817,242 835,115
Federal Home Loan Mortgage Corp. 7.00% 2028................. 106,440 108,767
Federal Home Loan Mortgage Corp. 7.00% 2028................. 3,887,610 3,972,632
Federal Home Loan Mortgage Corp. 7.00% 2028................. 1,973,299 2,016,455
Federal Home Loan Mortgage Corp. 7.50% 2027................. 179,204 184,523
Federal Home Loan Mortgage Corp. zero coupon 2022(1)........ 15,000 460,750
Federal National Mortgage Association zero coupon 2023(1)... 2,109,000 1,692,831
Federal National Mortgage Association 6.00% 2099............ 4,000,000 4,015,000
Federal National Mortgage Association 6.50% 2025............ 456,173 460,448
Federal National Mortgage Association 6.50% 2025............ 624,673 630,527
Federal National Mortgage Association 6.50% 2026............ 176,838 178,495
Federal National Mortgage Association 6.50% 2026............ 676,881 683,223
Federal National Mortgage Association 6.50% 2027............ 806,795 814,104
Federal National Mortgage Association 6.50% 2027............ 41,400 41,775
Federal National Mortgage Association 6.50% 2027............ 46,751 47,175
Federal National Mortgage Association 6.50% 2027............ 50,440 50,897
Federal National Mortgage Association 6.50% 2027............ 187,644 189,344
Federal National Mortgage Association 6.50% 2027............ 50,512 50,970
Federal National Mortgage Association 6.50% 2027............ 211,269 213,184
Federal National Mortgage Association 6.50% 2027............ 774,040 781,053
Federal National Mortgage Association 6.50% 2028............ 723,926 730,485
Federal National Mortgage Association 6.50% 2028............ 755,951 762,800
Federal National Mortgage Association 6.50% 2028............ 724,550 731,114
Federal National Mortgage Association 6.50% 2028............ 211,101 213,013
Federal National Mortgage Association 6.50% 2099............ 2,000,000 2,018,120
Federal National Mortgage Association 7.00% 2011............ 1,811,940 1,854,394
Federal National Mortgage Association 7.00% 2011............ 2,000,001 2,046,861
Federal National Mortgage Association 7.00% 2012............ 4,000,002 4,093,722
Government National Mortgage Association 7.00% 2022......... 928,640 951,559
Government National Mortgage Association 7.00% 2022......... 69,211 70,919
Government National Mortgage Association 7.00% 2023......... 370,264 379,403
Government National Mortgage Association 7.00% 2023......... 147,195 150,828
Government National Mortgage Association 7.00% 2023......... 14,721 15,085
Government National Mortgage Association 7.00% 2023......... 312,230 319,699
Government National Mortgage Association 7.00% 2023......... 316,556 324,369
Government National Mortgage Association 7.00% 2023......... 89,729 91,943
Government National Mortgage Association 7.00% 2023......... 194,300 199,095
Government National Mortgage Association 7.00% 2023......... 170,579 174,651
Government National Mortgage Association 7.00% 2023......... 167,481 171,614
Government National Mortgage Association 7.00% 2023......... 436,201 446,784
Government National Mortgage Association 7.00% 2023......... 783,699 803,040
Government National Mortgage Association 7.00% 2023......... 491,777 503,914
Government National Mortgage Association 7.00% 2023......... 395,540 405,301
Government National Mortgage Association 7.00% 2023......... 190,154 194,748
Government National Mortgage Association 7.00% 2023......... 371,044 380,201
Government National Mortgage Association 7.00% 2023......... 408,662 418,747
Government National Mortgage Association 7.00% 2023......... 357,384 366,204
Government National Mortgage Association 7.00% 2023......... 450,555 461,427
Government National Mortgage Association 7.00% 2023......... 139,470 142,794
Government National Mortgage Association 7.00% 2023......... 340,597 349,003
Government National Mortgage Association 7.00% 2023......... 200,472 205,420
</TABLE>
---------------------
47
<PAGE> 49
<TABLE>
<CAPTION>
PRINCIPAL
BONDS & NOTES (CONTINUED) AMOUNT VALUE
<S> <C> <C>
--------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
U.S. GOVERNMENT & AGENCIES (continued)
U.S. Government & Agencies (continued)
Government National Mortgage Association 7.00% 2023......... $ 776,791 $ 795,962
Government National Mortgage Association 7.00% 2023......... 46,660 47,812
Government National Mortgage Association 7.00% 2023......... 402,301 412,230
Government National Mortgage Association 7.50% 2023......... 626,894 648,051
United States Treasury Bond zero coupon 2026................ 1,000,000 228,150
United States Treasury Bonds 8.50% 2020@.................... 1,050,000 1,462,776
United States Treasury Bonds Strip zero coupon 2014......... 3,080,000 1,335,673
United States Treasury Bonds Strip zero coupon 2017......... 50,000 18,123
United States Treasury Bonds Strip zero coupon 2018......... 3,400,000 1,151,070
United States Treasury Bonds Strip zero coupon 2019......... 6,650,000 2,218,174
United States Treasury Bonds Strip zero coupon 2019......... 40,000 12,769
United States Treasury Bonds Strip zero coupon 2020......... 5,710,000 1,775,182
-------------
82,664,695
-------------
UTILITIES -- 0.7%
Electric Utilities -- 0.3%
National Power Corp 7.88% 2006.............................. 210,000 186,464
Niagara Mohawk Power Corp. 6.88% 2003....................... 870,000 901,233
Niagara Mohawk Power Corp. 7.00% 2000....................... 620,000 630,596
Niagara Mohawk Power Corp. 7.38% 2003....................... 210,000 225,174
Gas & Pipeline Utilities -- 0.4%
CMS Energy Corp. 7.38% 2000................................. 1,150,000 1,161,914
Williams Cos., Inc. 6.13% 2002.............................. 1,875,000 1,882,950
-------------
4,988,331
-------------
TOTAL BONDS & NOTES (cost $204,694,588)..................... 206,632,405
-------------
TOTAL INVESTMENT SECURITIES (cost $631,238,121)............. 639,431,455
-------------
<CAPTION>
SHORT-TERM SECURITIES -- 2.0%
--------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 1.1%
Central Maine Power Co. 7.45% due 8/30/99................... 885,000 893,027
Countrywide Funding Corp. 8.43% due 11/16/99................ 450,000 461,358
K Mart Corp. 7.22% due 7/07/99.............................. 300,000 301,215
K Mart Corp. 7.96% due 11/15/99............................. 500,000 506,360
NWCG Holding Corp. zero coupon due 6/15/99.................. 1,380,000 1,342,919
Oryx Energy Co. 9.50% due 11/01/99.......................... 1,820,000 1,864,572
Signet Banking Corp. 9.63% due 6/01/99...................... 775,000 785,804
Time Warner Pass Through Asset Trust 4.90% due 7/29/99...... 1,600,000 1,596,976
-------------
7,752,231
-------------
U.S. GOVERNMENT & AGENCIES -- 0.9%
United States Treasury Bills 3.97% due 2/04/99@............. 3,510,000 3,508,865
United States Treasury Bills 4.22% due 2/04/99@............. 3,010,000 3,008,941
United States Treasury Bills 4.52% due 2/04/99@............. 300,000 299,887
-------------
6,817,693
-------------
TOTAL SHORT-TERM SECURITIES (cost $14,509,504).............. 14,569,924
-------------
</TABLE>
- ---------------------
48
<PAGE> 50
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 10.0% AMOUNT VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 10.0%
Agreement with State Street Bank & Trust Co., bearing
interest at 4.7% dated 01/29/99 to be repurchased 02/01/99
in the amount of $72,489,381 and collateralized by
$72,982,322 of U.S. Treasury Bonds, bearing interest at
8.125%, due 05/15/21 and having an approximate value of
$73,932,682
(cost $72,461,000)@....................................... $ 72,461,000 $ 72,461,000
-------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS --
(cost $718,208,625) 100.3% 726,462,379
Liabilities in excess of other assets-- (0.3) (1,945,914)
------ -------------
NET ASSETS-- 100.0% $ 724,516,465
====== =============
</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 January 31, 1999.
(3) Represents a zero coupon bond which will convert to an
interest-bearing security at a later date.
@ The security or a portion thereof represent collateral for the
following open futures contracts:
<TABLE>
<CAPTION>
OPEN FUTURES CONTRACTS
--------------------------------------------------------------------------------------------------------
VALUE AS OF UNREALIZED
NUMBER OF EXPIRATION VALUE AT JANUARY 31, APPRECIATION/
CONTRACTS DESCRIPTION DATE TRADE DATE 1999 DEPRECIATION
--------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
273 Long S&P 500.......................... March 1999 $84,282,333 $87,462,375 $3,180,042
4 Short 90 Day Euro Dollar............... June 1999 955,975 950,950 5,025
1 Long 90 Day Euro Future............... September 1999 237,074 237,775 701
20 Short U.S. 2 Year Note................. March 1999 4,239,814 4,228,750 (11,064)
139 Short U.S. 5 Year Note................. March 1999 15,882,093 15,767,813 (114,280)
3 Short U.S. 10 Year Note................ March 1999 358,520 357,563 (957)
115 Long U.S. Treasury Bond............... March 1999 14,566,951 14,720,000 153,049
-----------
Net Unrealized Appreciation................................................. $3,212,516
===========
</TABLE>
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
-------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE APPRECIATION
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
AUD 5,266,491 USD 3,369,817 04/15/99 $ 51,650
------------
Net Unrealized Appreciation............. $ 51,650
============
</TABLE>
-----------------------------
AUD -- Australian Dollar
USD -- United States Dollar
See Notes to Financial Statements.
---------------------
49
<PAGE> 51
- ---------------------
SUNAMERICA SERIES TRUST
UTILITY PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK -- 88.5% SHARES VALUE
---------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY -- 3.0%
Energy Sources -- 3.0%
Houston Industries, Inc. ................................... 37,200 $ 1,129,950
Sonat, Inc. ................................................ 47,400 1,220,550
------------
2,350,500
------------
INDUSTRIAL & COMMERCIAL -- 0.7%
Multi-Industry -- 0.7%
VEBA AG ADR................................................. 9,700 574,725
------------
INFORMATION TECHNOLOGY -- 3.9%
Telecommunications -- 3.9%
ALLTEL Corp. ............................................... 7,500 484,219
Intermedia Communications, Inc.*............................ 477 6,618
Intermedia Communications, Inc.+............................ 342 4,745
Pacific Gateway Exchange, Inc.+............................. 14,500 480,312
Telecom Italia SpA.......................................... 82,000 768,079
U.S. West, Inc. ............................................ 20,100 1,239,919
------------
2,983,892
------------
MATERIALS -- 2.3%
Metals & Minerals -- 2.3%
Barrick Gold Corp. ......................................... 35,500 676,719
USEC, Inc. ................................................. 76,200 1,104,900
------------
1,781,619
------------
REAL ESTATE -- 6.7%
Real Estate Investment Trusts -- 6.7%
Apartment Investment & Management Co., Class A.............. 11,200 418,600
Archstone Communities Trust................................. 13,470 263,507
Avalonbay Communities, Inc. ................................ 10,050 322,228
Brandywine Realty Trust..................................... 15,700 259,050
Camden Property Trust....................................... 16,000 398,000
Duke Realty Investments, Inc................................ 11,100 255,300
Equity Office Properties Trust.............................. 10,500 267,750
Equity Residential Properties Trust......................... 8,700 353,981
First Industrial Realty Trust, Inc. ........................ 24,400 626,775
Gables Residential Trust.................................... 19,300 442,694
HRPT Properties Trust....................................... 22,900 320,600
Liberty Property Trust...................................... 13,600 321,300
Post Properties, Inc. ...................................... 8,700 324,075
Prentiss Properties Trust................................... 17,000 360,187
ProLogis Trust.............................................. 10,000 211,875
------------
5,145,922
------------
UTILITIES -- 71.9%
Electric Utilities -- 36.4%
BEC Energy.................................................. 46,400 1,774,800
Central & South West Corp. ................................. 43,500 1,150,031
Dominion Resources, Inc. ................................... 28,700 1,284,325
DQE, Inc. .................................................. 38,900 1,534,119
Duke Energy Corp. .......................................... 6,000 370,875
</TABLE>
- ---------------------
50
<PAGE> 52
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
---------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Electric Utilities (continued)
Edison International........................................ 70,900 $ 1,971,906
Electricidade de Portugal, SA ADR........................... 4,125 201,094
Endesa SA ADR............................................... 6,900 194,063
Entergy Corp. .............................................. 41,500 1,221,656
FirstEnergy Corp. .......................................... 37,500 1,164,844
Florida Progress Corp. ..................................... 33,200 1,381,950
FPL Group, Inc. ............................................ 18,800 1,031,650
Illinova Corp. ............................................. 30,900 755,119
Montana Power Co. .......................................... 8,900 467,250
New England Electric Systems................................ 32,000 1,566,000
Niagara Mohawk Power Corp.+................................. 53,000 811,562
NIPSCO Industries, Inc. .................................... 44,500 1,207,062
Oge Energy Corp. ........................................... 49,700 1,258,031
PacifiCorp.................................................. 30,200 620,988
PECO Energy Co. ............................................ 30,700 1,172,356
Pinnacle West Capital Corp. ................................ 32,300 1,292,000
Potomac Electric Power Co. ................................. 46,200 1,077,037
Powergen PLC ADR............................................ 9,790 550,688
Public Service Enterprise Group, Inc. ...................... 28,200 1,119,187
Puget Sound Energy, Inc. ................................... 30,200 760,663
Rochester Gas & Electric Corp. ............................. 21,200 609,500
Southern Co. ............................................... 26,100 703,069
TECO Energy, Inc. .......................................... 22,200 516,150
UtiliCorp United, Inc. ..................................... 11,600 406,000
Gas & Pipeline Utilities -- 21.9%
AGL Resources, Inc. ........................................ 23,100 464,888
BG PLC...................................................... 14,500 444,063
CMS Energy Corp. ........................................... 31,700 1,357,156
Columbia Gas Systems, Inc. ................................. 11,800 610,650
Consolidated Natural Gas Co. ............................... 28,400 1,457,275
El Paso Energy Corp. ....................................... 62,100 2,049,300
Enron Corp. ................................................ 21,500 1,419,000
Equitable Resources, Inc. .................................. 11,200 291,900
KeySpan Energy Corp. ....................................... 55,300 1,496,556
KN Energy, Inc. ............................................ 14,400 284,400
MCN Energy Group, Inc. ..................................... 82,800 1,469,700
National Fuel Gas Co. ...................................... 17,600 744,700
Pacific Gas & Electric Corp. ............................... 41,100 1,312,631
Questar Corp. .............................................. 30,700 512,306
SCANA Corp. ................................................ 30,200 836,162
Sempra Energy............................................... 64,300 1,478,900
UGI Corp. .................................................. 26,000 570,375
Washington Gas Light Co. ................................... 6,400 153,600
Telephone -- 13.6%
Ameritech Corp. ............................................ 15,900 1,035,487
AT&T Corp. ................................................. 14,900 1,352,175
Bell Atlantic Corp. ........................................ 30,500 1,830,000
BellSouth Corp. ............................................ 12,200 544,425
Cincinnati Bell, Inc. ...................................... 24,200 491,563
GTE Corp. .................................................. 30,900 2,085,750
MCI WorldCom, Inc.+......................................... 8,680 692,230
</TABLE>
---------------------
51
<PAGE> 53
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
---------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (continued)
Telephone (continued)
SBC Communications, Inc. ................................... 21,028 $ 1,135,512
Sprint Corp. ............................................... 15,900 1,327,650
------------
55,622,329
------------
TOTAL COMMON STOCK (cost $65,415,796)....................... 68,458,987
------------
<CAPTION>
PREFERRED STOCK -- 3.5%
---------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY -- 0.6%
Telecommunications -- 0.6%
Intermedia Communications, Inc. convertible................. 12,000 213,000
Intermedia Communications, Inc.............................. 16,500 241,313
------------
454,313
------------
UTILITIES -- 2.9%
Electric Utilities -- 1.5%
Texas Utilities Co. 9.25% convertible....................... 20,700 1,146,262
Gas & Pipeline Utilities -- 1.4%
KN Energy, Inc. 8.25% convertible........................... 29,500 1,065,688
------------
2,211,950
------------
TOTAL PREFERRED STOCK (cost $2,851,135)..................... 2,666,263
------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 1.1% AMOUNT
---------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 1.1%
Financial Services -- 1.1%
Bell Atlantic Financial Services 5.75% 2003 convertible*
(cost $838,152)........................................... $ 820,000 871,250
------------
TOTAL INVESTMENT SECURITIES (cost $69,105,083).............. 71,996,500
------------
<CAPTION>
SHORT-TERM SECURITIES -- 5.3%
---------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 5.3%
Cayman Island Time Deposit with State Street Bank & Trust
Co. 3.75% due 2/01/99 (cost $4,073,000)................... 4,073,000 4,073,000
------------
TOTAL INVESTMENTS --
(cost $73,178,083) 98.4% 76,069,500
Other assets less liabilities-- 1.6 1,253,556
------ -----------
NET ASSETS -- 100.0% $77,323,056
====== ===========
</TABLE>
-----------------------------
+ Non-income producing securities
* Resale restricted to qualified institutional buyers
ADR -- American Depository Receipt
See Notes to Financial Statements.
- ---------------------
52
<PAGE> 54
- ---------------------
SUNAMERICA SERIES TRUST
GROWTH-INCOME PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK -- 92.7% SHARES VALUE
--------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 12.1%
Apparel & Textiles -- 0.3%
Tommy Hilfiger Corp.+....................................... 50,000 $ 3,537,500
Automotive -- 0.6%
Harley-Davidson, Inc. ...................................... 157,100 8,169,200
Housing -- 1.7%
Home Depot, Inc. ........................................... 340,000 20,527,500
Retail -- 9.5%
Abercrombie & Fitch Co.+.................................... 109,000 8,338,500
Best Buy Co., Inc.+......................................... 70,000 6,352,500
Circuit City Stores, Inc. .................................. 135,000 7,458,750
Gap, Inc. .................................................. 138,300 8,877,131
Kohl's Corp.+............................................... 145,000 9,823,750
Kroger Co.+................................................. 135,000 8,572,500
Newell Co. ................................................. 125,000 5,195,313
Rite Aid Corp. ............................................. 165,000 8,105,625
Saks, Inc.+................................................. 175,000 6,442,187
Tiffany & Co. .............................................. 95,000 5,468,438
United States Industries, Inc. ............................. 350,000 6,606,250
Wal-Mart Stores, Inc. ...................................... 385,000 33,110,000
---------------
146,585,144
---------------
CONSUMER STAPLES -- 9.0%
Food, Beverage & Tobacco -- 3.2%
Coca-Cola Enterprises, Inc. ................................ 135,000 4,775,625
Philip Morris Cos., Inc. ................................... 440,000 20,680,000
Starbucks Corp.+............................................ 140,000 7,288,750
Tyson Foods, Inc., Class A.................................. 270,000 5,653,125
Household Products -- 5.8%
Avon Products, Inc. ........................................ 300,000 11,081,250
Colgate-Palmolive Co........................................ 155,000 12,467,812
Estee Lauder Cos., Inc., Class A............................ 105,000 8,616,563
Gillette Co. ............................................... 270,000 15,862,500
Procter & Gamble Co. ....................................... 240,000 21,810,000
---------------
108,235,625
---------------
ENERGY -- 0.7%
Energy Services -- 0.7%
Noble Drilling Corp.+....................................... 600,000 8,025,000
---------------
FINANCE -- 16.6%
Banks -- 5.5%
Bank One Corp. ............................................. 250,000 13,093,750
BankAmerica Corp. .......................................... 390,030 26,083,256
Chase Manhattan Corp. ...................................... 200,000 15,387,500
U.S. Bancorp................................................ 340,000 11,453,750
Financial Services -- 9.7%
Associates First Capital Corp., Class A..................... 230,000 9,329,375
Citigroup, Inc. ............................................ 542,600 30,419,513
</TABLE>
---------------------
53
<PAGE> 55
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
--------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Hartford Financial Services Group, Inc. .................... 110,000 $ 5,713,125
Household International, Inc. .............................. 260,000 11,423,750
Legg Mason, Inc. ........................................... 154,000 4,581,500
MBNA Corp. ................................................. 270,000 7,543,125
Merrill Lynch & Co., Inc. .................................. 160,000 12,160,000
Morgan Stanley Dean Witter & Co. ........................... 186,265 16,170,130
Newcourt Credit Group, Inc. ................................ 230,000 7,417,500
Wells Fargo Co. ............................................ 350,000 12,228,125
Insurance -- 1.4%
Hartford Life, Inc., Class A................................ 115,000 6,483,125
PMI Group, Inc. ............................................ 135,000 5,788,125
Travelers Property Casualty Corp., Class A.................. 155,000 4,465,938
---------------
199,741,587
---------------
HEALTHCARE -- 9.2%
Drugs -- 6.6%
Bristol-Myers Squibb Co..................................... 220,000 28,201,250
GelTex Pharmaceuticals, Inc.+............................... 210,000 5,263,125
Pfizer, Inc. ............................................... 225,000 28,940,625
Schering-Plough Corp. ...................................... 320,000 17,440,000
Health Services -- 0.6%
McKesson HBOC, Inc.......................................... 92,500 6,949,062
Medical Products -- 2.0%
Amgen, Inc.+................................................ 60,000 7,668,750
Genzyme Corp. .............................................. 1 2
Genzyme Molecular Oncology+................................. 150,000 8,175,000
Medtronic, Inc.............................................. 112,700 8,980,781
---------------
111,618,595
---------------
INDUSTRIAL & COMMERCIAL -- 8.3%
Aerospace & Military Technology -- 2.0%
AlliedSignal, Inc. ......................................... 180,000 7,020,000
Gulfstream Aerospace Corp.+................................. 105,000 5,775,000
United Technologies Corp. .................................. 95,000 11,346,563
Business Services -- 1.1%
First Data Corp. ........................................... 118,000 4,520,875
Republic Services, Inc. Class A+............................ 180,000 3,712,500
Waste Management, Inc. ..................................... 92,125 4,600,492
Electrical Equipment -- 3.9%
General Electric Co. ....................................... 450,000 47,193,750
Multi-Industry -- 1.0%
Tyco International Ltd. .................................... 165,800 12,776,963
Transportation -- 0.3%
CNF Transportation, Inc. ................................... 80,000 3,550,000
Union Pacific Corp. ........................................ 1 51
---------------
100,496,194
---------------
INFORMATION & ENTERTAINMENT -- 5.9%
Broadcasting & Media -- 2.7%
CBS Corp.+.................................................. 195,000 6,630,000
Fox Entertainment Group, Inc., Class A+..................... 200,000 5,575,000
Gannett Co., Inc. .......................................... 105,000 6,910,313
Time Warner, Inc. .......................................... 220,000 13,750,000
</TABLE>
- ---------------------
54
<PAGE> 56
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
--------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT (continued)
Leisure & Tourism -- 3.2%
Carnival Corp., Class A..................................... 161,400 $ 7,918,687
Continental Airlines, Inc., Class B+........................ 100,000 3,412,500
Delta Air Lines, Inc. ...................................... 110,000 6,001,875
Northwest Airlines Corp., Class A+.......................... 190,000 5,201,250
Royal Caribbean Cruises Ltd. ............................... 210,000 8,347,500
Viad Corp. ................................................. 270,000 7,745,625
---------------
71,492,750
---------------
INFORMATION TECHNOLOGY -- 26.8%
Computers & Business Equipment -- 10.3%
Ceridian Corp.+............................................. 51,100 4,056,063
Cisco Systems, Inc.+........................................ 300,000 33,468,750
Compaq Computer Corp. ...................................... 335,000 15,954,375
Computer Sciences Corp.+.................................... 105,000 7,199,062
Dell Computer Corp.+........................................ 320,000 32,000,000
International Business Machines Corp. ...................... 135,000 24,738,750
Staples, Inc.+.............................................. 233,100 6,672,487
Electronics -- 6.7%
Altera Corp.+............................................... 114,700 7,211,762
Honeywell, Inc. ............................................ 105,000 6,844,688
Intel Corp. ................................................ 235,000 33,120,312
Motorola, Inc. ............................................. 170,000 12,282,500
Sanmina Corp.+.............................................. 160,000 10,600,000
Solectron Corp.+............................................ 120,000 10,687,500
Software -- 6.2%
America Online, Inc.+....................................... 40,000 7,027,500
Intuit, Inc.+............................................... 100,000 9,100,000
Microsoft Corp.+............................................ 335,000 58,625,000
Telecommunications -- 3.6%
AirTouch Communications, Inc.+.............................. 180,000 17,381,250
Global Tele-Systems Group, Inc.+............................ 55,000 3,444,375
Liberty Media Group, Series A+.............................. 233,462 12,490,217
Tele-Communications, Inc., Class A+......................... 145,000 9,941,563
---------------
322,846,154
---------------
MATERIALS -- 0.5%
Forest Products -- 0.5%
Sealed Air Corp. ........................................... 110,000 5,836,875
---------------
UTILITIES -- 3.6%
Electric Utilities -- 2.0%
CMS Energy Corp. ........................................... 260,000 11,131,250
Consolidated Edison, Inc. .................................. 255,000 12,606,562
Telephone -- 1.6%
MCI WorldCom, Inc.+......................................... 245,000 19,538,750
---------------
43,276,562
---------------
TOTAL INVESTMENT SECURITIES (cost $737,066,681)............. 1,118,154,486
---------------
</TABLE>
---------------------
55
<PAGE> 57
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 8.7% AMOUNT VALUE
--------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 8.4%
Cayman Island Time Deposit with State Street Bank & Trust
Co.
4.50% due 2/01/99@........................................ $101,457,000 $ 101,457,000
U.S. GOVERNMENT -- 0.3%
United States Treasury Bills zero coupon due 3/18/99........ 2,000,000 1,989,125
United States Treasury Bills 4.24% due 3/18/99.............. 600,000 596,820
United States Treasury Bills 4.44% due 3/18/99.............. 420,000 417,672
---------------
TOTAL SHORT-TERM SECURITIES (cost $104,460,617)............. 104,460,617
---------------
TOTAL INVESTMENTS --
(cost $841,527,298) 101.4% 1,222,615,103
Liabilities in excess of other assets -- (1.4) (16,501,752)
------ ---------------
NET ASSETS -- 100.0% $ 1,206,113,351
====== ===============
</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 JANUARY 31, UNREALIZED
CONTRACTS DESCRIPTION DATE TRADE DATE 1999 APPRECIATION
---------
<S> <C> <C> <C> <C> <C>
170 Long Standard & Poor's 500 Index........... March 1999 $50,278,375 $54,463,750 $4,185,375
==========
</TABLE>
See Notes to Financial Statements
- ---------------------
56
<PAGE> 58
- ---------------------
SUNAMERICA SERIES TRUST
FEDERATED VALUE PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK -- 96.4% SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 9.1%
Automotive -- 3.4%
Cooper Tire & Rubber........................................ 40,300 $ 863,931
General Motors Corp. ....................................... 28,300 2,539,925
Tenneco, Inc. .............................................. 62,900 1,942,038
Retail -- 5.7%
American Stores Co. ........................................ 17,200 623,500
Dillards, Inc., Class A..................................... 49,800 1,235,662
Kmart Corp.+................................................ 102,300 1,796,644
Liz Claiborne, Inc. ........................................ 58,700 2,245,275
Sherwin-Williams Co. ....................................... 60,900 1,560,562
Wal-Mart Stores, Inc. ...................................... 19,500 1,677,000
-------------
14,484,537
-------------
CONSUMER STAPLES -- 11.9%
Food, Beverage & Tobacco -- 10.0%
Anheuser-Busch Cos., Inc. .................................. 37,000 2,615,438
Archer-Daniels-Midland Co. ................................. 154,315 2,334,014
Corn Products International, Inc. .......................... 95,700 2,542,031
Philip Morris Cos., Inc. ................................... 57,800 2,716,600
RJR Nabisco Holdings Corp. ................................. 85,300 2,303,100
UST, Inc. .................................................. 108,200 3,408,300
Household Products -- 1.9%
Kimberly-Clark Corp. ....................................... 60,600 3,018,638
-------------
18,938,121
-------------
ENERGY -- 8.2%
Energy Services -- 2.7%
Coastal Corp. .............................................. 17,900 533,644
Diamond Offshore Drilling, Inc. ............................ 56,900 1,308,700
Schlumberger Ltd. .......................................... 52,200 2,486,025
Energy Sources -- 5.5%
Exxon Corp. ................................................ 19,700 1,387,619
Houston Industries, Inc. ................................... 45,900 1,394,212
Mobil Corp. ................................................ 15,700 1,376,694
Royal Dutch Petroleum Co. ADR............................... 35,200 1,410,200
Sunoco, Inc. ............................................... 39,400 1,383,925
Texaco, Inc. ............................................... 16,000 758,000
USX-Marathon Group, Inc. ................................... 44,400 1,010,100
-------------
13,049,119
-------------
FINANCE -- 13.1%
Banks -- 0.4%
Republic New York Corp. .................................... 19,100 699,538
Financial Services -- 3.9%
Bear Stearns Cos., Inc. .................................... 43,900 2,068,787
CIT Group, Inc., Class A.................................... 76,600 2,441,625
Washington Mutual, Inc. .................................... 38,500 1,617,000
</TABLE>
---------------------
57
<PAGE> 59
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- (continued)
Insurance -- 8.8%
Allstate Corp. ............................................. 40,800 $ 1,532,550
CIGNA Corp. ................................................ 35,000 2,883,125
Conseco, Inc. .............................................. 97,932 3,029,771
Lincoln National Corp. ..................................... 19,500 1,624,594
Marsh & McLennan Cos., Inc. ................................ 31,400 1,974,275
MBIA, Inc. ................................................. 17,000 1,114,562
Oxford Health Plans, Inc.+.................................. 109,900 1,902,644
-------------
20,888,471
-------------
HEALTHCARE -- 6.1%
Drugs -- 3.9%
Bristol-Myers Squibb Co. ................................... 12,900 1,653,619
Merck & Co., Inc. .......................................... 10,700 1,570,225
Pharmacia & Upjohn, Inc. ................................... 51,900 2,984,250
Health Services -- 1.2%
United HealthCare Corp. .................................... 41,000 1,834,750
Medical Products -- 1.0%
Abbott Laboratories, Inc. .................................. 33,900 1,574,231
-------------
9,617,075
-------------
INDUSTRIAL & COMMERCIAL -- 11.8%
Aerospace & Military Technology -- 2.7%
AlliedSignal, Inc. ......................................... 38,800 1,513,200
Boeing Co. ................................................. 81,300 2,809,931
Business Services -- 3.9%
Browning-Ferris Industries, Inc. ........................... 16,700 459,250
First Data Corp. ........................................... 73,400 2,812,137
Johnson Controls, Inc. ..................................... 21,900 1,411,181
Waste Management, Inc. ..................................... 31,000 1,548,063
Machinery -- 1.7%
Deere & Co. ................................................ 42,400 1,380,650
Ingersoll-Rand Co. ......................................... 27,500 1,306,250
Transportation -- 3.5%
ABB AB ADR.................................................. 152,800 1,499,350
Canadian National Railway Co. .............................. 23,400 1,251,900
CNF Transportation, Inc. ................................... 36,800 1,633,000
Ryder System, Inc. ......................................... 47,100 1,148,063
-------------
18,772,975
-------------
INFORMATION & ENTERTAINMENT -- 6.7%
Broadcasting & Media -- 3.1%
King World Productions, Inc.+............................... 52,400 1,434,450
Viacom, Inc., Class A+...................................... 26,200 2,197,525
Viacom, Inc., Class B NV+................................... 14,700 1,249,500
Entertainment Products -- 2.1%
Eastman Kodak Co. .......................................... 18,700 1,222,512
Toys "R" US, Inc.+.......................................... 138,300 2,074,500
Leisure & Tourism -- 1.5%
Brunswick Corp. ............................................ 40,800 1,007,250
Tricon Global Restaurants, Inc.+............................ 31,200 1,483,950
-------------
10,669,687
-------------
</TABLE>
- ---------------------
58
<PAGE> 60
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY -- 12.4%
Computers & Business Equipment -- 8.7%
Electronic Data Systems Corp. .............................. 59,500 $ 3,120,031
International Business Machines Corp. ...................... 11,200 2,052,400
Seagate Technology, Inc.+................................... 56,400 2,294,775
Storage Technology Corp.+................................... 66,000 2,557,500
Sun Microsystems, Inc.+..................................... 33,500 3,743,625
Electronics -- 3.7%
AMP, Inc. .................................................. 41,531 2,185,569
Motorola, Inc. ............................................. 23,900 1,726,775
Parker-Hannifin Corp. ...................................... 12,300 378,225
Philips Electronics NV...................................... 22,300 1,623,719
-------------
19,682,619
-------------
MATERIALS -- 5.6%
Chemicals -- 2.2%
Ashland, Inc. .............................................. 52,100 2,474,750
Dow Chemical Co. ........................................... 12,300 1,083,169
Metals & Minerals -- 3.4%
Barrick Gold Corp. ......................................... 59,700 1,138,031
Crown, Cork & Seal Co., Inc. ............................... 59,200 1,875,900
Nucor Corp. ................................................ 48,800 2,391,200
-------------
8,963,050
-------------
REAL ESTATE -- 0.5%
Real Estate Investment Trusts -- 0.5%
Boston Properties, Inc. .................................... 24,500 796,250
-------------
UTILITIES -- 11.0%
Electric Utilities -- 4.3%
Entergy Corp. .............................................. 61,400 1,807,462
FPL Group, Inc. ............................................ 28,200 1,547,475
PECO Energy Co. ............................................ 53,200 2,031,575
Public Service Enterprise Group, Inc. ...................... 38,400 1,524,000
Gas & Pipeline Utilities -- 2.2%
Consolidated Natural Gas Co. ............................... 34,800 1,785,675
Pacific Gas & Electric Corp. ............................... 51,000 1,628,813
Telephone -- 4.5%
AT&T Corp. ................................................. 23,500 2,132,625
GTE Corp. .................................................. 49,200 3,321,000
SBC Communications, Inc. ................................... 31,400 1,695,600
-------------
17,474,225
-------------
TOTAL COMMON STOCK (cost $135,931,634)...................... 153,336,129
-------------
<CAPTION>
PREFERRED STOCK -- 1.6%
----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 1.6%
Broadcasting & Media -- 1.6%
News Corp. Ltd. ADR (cost $1,684,278)....................... 91,500 2,562,000
-------------
TOTAL INVESTMENT SECURITIES (cost $137,615,912)............. 155,898,129
-------------
</TABLE>
---------------------
59
<PAGE> 61
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 1.8% AMOUNT VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 1.8%
Cayman Island Time Deposit with State Street Bank & Trust
Co.
3.75% due 2/01/99 (cost $2,925,000)....................... $2,925,000 $ 2,925,000
-------------
TOTAL INVESTMENTS --
(cost $140,540,912) 99.8% 158,823,129
Other assets less liabilities-- 0.2 352,377
------ ------ -------------
NET ASSETS -- 100.0% $159,175,506
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
ADR -- American Depository Receipt
See Notes to Financial Statements.
- ---------------------
60
<PAGE> 62
- ---------------------
SUNAMERICA SERIES TRUST
VENTURE VALUE PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK -- 95.1% SHARES VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 3.5%
Housing -- 2.4%
Masco Corp. ................................................ 1,366,200 $ 44,145,337
Maytag Corp. ............................................... 4,200 265,388
Retail -- 1.1%
Harcourt General, Inc. ..................................... 407,600 19,564,800
---------------
63,975,525
---------------
CONSUMER STAPLES -- 4.0%
Food, Beverage & Tobacco -- 3.5%
Coca-Cola Co. .............................................. 12,400 811,425
Gallaher Group PLC ADR...................................... 4,200 116,812
Philip Morris Cos., Inc. ................................... 1,360,200 63,929,400
Household Products -- 0.5%
Fortune Brands, Inc. ....................................... 4,200 139,650
Gillette Co. ............................................... 148,700 8,736,125
---------------
73,733,412
---------------
ENERGY -- 3.0%
Energy Services -- 1.9%
Cooper Cameron Corp.+....................................... 151,200 3,534,300
Halliburton Co. ............................................ 451,600 13,406,875
Schlumberger Ltd. .......................................... 387,600 18,459,450
Energy Sources -- 1.1%
Amerada Hess Corp. ......................................... 1,800 85,500
Atlantic Richfield Co. ..................................... 4,800 275,400
BP Amoco PLC ADR............................................ 81,323 6,597,328
Burlington Resources, Inc. ................................. 700 21,175
Chevron Corp. .............................................. 8,100 605,475
Devon Energy Corp. ......................................... 295,200 7,730,550
Exxon Corp. ................................................ 24,800 1,746,850
Mobil Corp. ................................................ 2,200 192,913
Noble Affiliates, Inc. ..................................... 129,357 2,546,716
Sonat, Inc. ................................................ 2,200 56,650
---------------
55,259,182
---------------
FINANCE -- 36.5%
Banks -- 5.4%
Bank One Corp. ............................................. 393,632 20,616,476
BankAmerica Corp. .......................................... 648,064 43,339,280
First Union Corp. .......................................... 4,500 236,812
Golden West Financial Corp. ................................ 108,800 10,213,600
SunTrust Banks, Inc. ....................................... 116,500 8,205,969
U.S. Bancorp................................................ 514,300 17,325,481
Financial Services -- 21.2%
American Express Co. ....................................... 962,400 99,006,900
Citigroup, Inc. ............................................ 1,252,931 70,242,444
Donaldson, Lufkin & Jenrette, Inc. ......................... 228,200 11,381,475
</TABLE>
---------------------
61
<PAGE> 63
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Financial Services (continued)
Dun & Bradstreet Corp. ..................................... 400 $ 12,200
Federal Home Loan Mortgage Corp. ........................... 319,400 19,802,800
Household International, Inc. .............................. 1,024,000 44,992,000
Morgan (J.P.) & Co., Inc. .................................. 3,400 358,700
Morgan Stanley, Dean Witter & Co. .......................... 478,025 41,498,545
ReliaStar Financial Corp. .................................. 57,900 2,399,231
State Street Corp. ......................................... 145,900 10,431,850
Wells Fargo Co. ............................................ 2,549,300 89,066,169
Insurance -- 9.6%
20th Century Industries..................................... 113,700 2,409,019
Allstate Corp. ............................................. 509,190 19,126,449
American International Group, Inc.*......................... 73,300 7,545,319
Berkley (W.R.) Corp. ....................................... 84,900 2,207,400
Chubb Corp. ................................................ 673,000 39,538,750
Progressive Corp. .......................................... 376,200 47,001,487
Transatlantic Holdings, Inc. ............................... 550,600 41,260,588
UNUM Corp. ................................................. 295,700 17,871,369
Investment Companies -- 0.3%
Morgan Stanley Asia-Pacific Fund............................ 741,767 5,563,253
---------------
671,653,566
---------------
HEALTHCARE -- 5.4%
Drugs -- 4.5%
American Home Products Corp. ............................... 378,800 22,230,825
Bristol-Myers Squibb Co. ................................... 63,400 8,127,087
Glaxo Wellcome PLC ADR...................................... 23,700 1,608,638
Lilly (Eli) & Co. .......................................... 53,900 5,049,756
Merck & Co., Inc. .......................................... 52,900 7,763,075
Pfizer, Inc. ............................................... 41,600 5,350,800
SmithKline Beecham PLC ADR.................................. 468,700 31,783,719
Health Services -- 0.0%
IMS Health, Inc. ........................................... 800 29,300
Medical Products -- 0.9%
Johnson & Johnson Co. ...................................... 77,500 6,587,500
Novartis AG ADR............................................. 115,700 10,825,355
---------------
99,356,055
---------------
INDUSTRIAL & COMMERCIAL -- 8.0%
Business Services -- 0.3%
AC Nielsen Corp.+........................................... 133 3,042
Waste Management, Inc. ..................................... 82,715 4,130,580
WPP Group PLC ADR........................................... 12,200 912,713
Electrical Equipment -- 0.1%
General Electric Co. ....................................... 12,200 1,279,475
Machinery -- 1.1%
Dover Corp. ................................................ 548,400 17,034,675
Smith International, Inc.+.................................. 113,200 2,865,375
Multi-Industry -- 6.0%
Berkshire Hathaway, Inc., Class A+.......................... 1,395 90,675,000
Berkshire Hathaway, Inc., Class B+.......................... 24 51,600
Tyco International Ltd. .................................... 267,600 20,621,925
</TABLE>
- ---------------------
62
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL (continued)
Transportation -- 0.5%
Burlington Northern Santa Fe Corp. ......................... 249,000 $ 8,621,625
Canadian National Railway Co. .............................. 23,321 1,247,674
---------------
147,443,684
---------------
INFORMATION & ENTERTAINMENT -- 6.3%
Broadcasting & Media -- 1.6%
Dow Jones & Co., Inc. ...................................... 94,500 4,228,875
Gannett Co., Inc. .......................................... 232,600 15,307,988
New York Times Co., Class A................................. 27,600 947,025
Nielsen Media Research, Inc. ............................... 133 2,510
R.H. Donnelley Corp. ....................................... 80 1,305
Tribune Co. ................................................ 98,700 6,310,631
Washington Post Co., Class B................................ 5,000 2,845,000
Entertainment Products -- 0.1%
Hasbro, Inc. ............................................... 38,600 1,435,438
Leisure & Tourism -- 4.6%
McDonald's Corp. ........................................... 1,075,800 84,786,487
---------------
115,865,259
---------------
INFORMATION TECHNOLOGY -- 20.6%
Communication Equipment -- 0.5%
Molex, Inc. ................................................ 334,981 9,944,748
Computers & Business Equipment -- 9.8%
Hewlett-Packard Co. ........................................ 1,347,800 105,633,825
International Business Machines Corp. ...................... 401,800 73,629,850
Electronics -- 9.0%
Applied Materials, Inc.+.................................... 539,200 34,070,700
Intel Corp. ................................................ 338,000 47,636,875
Motorola, Inc. ............................................. 89,700 6,480,825
Texas Instruments, Inc. .................................... 782,300 77,349,913
Telecommunications -- 1.3%
AirTouch Communications, Inc.+.............................. 226,900 21,910,031
Globalstar Telecommunications Ltd.+......................... 42,296 811,555
Loral Space & Communications Corp.+......................... 83,200 1,830,400
---------------
379,298,722
---------------
MATERIALS -- 4.0%
Chemicals -- 0.0%
Dow Chemical Co. ........................................... 600 52,838
Forest Products -- 1.2%
International Paper Co. .................................... 1,300 51,431
Sealed Air Corp.+........................................... 434,300 23,045,044
Union Camp Corp. ........................................... 2,000 123,375
Metals & Minerals -- 2.8%
Martin Marietta Materials, Inc. ............................ 585,500 30,738,750
Vulcan Materials Co. ....................................... 149,400 20,551,837
---------------
74,563,275
---------------
</TABLE>
---------------------
63
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE -- 3.8%
Real Estate Companies -- 0.0%
Boardwalk Equities, Inc.+................................... 30,700 $ 295,290
Real Estate Investment Trusts -- 3.8%
CenterPoint Properties Corp. ............................... 46,100 1,504,013
Crescent Real Estate Equities Co. .......................... 543,600 11,517,525
Equity Office Properties Trust.............................. 175,300 4,470,150
Equity Residential Properties Trust......................... 69,600 2,831,850
Federal Realty Investment Trust............................. 47,800 1,099,400
Gables Residential Trust.................................... 29,700 681,244
General Growth Properties, Inc. ............................ 333,000 11,530,125
Home Properties of New York, Inc. .......................... 34,200 887,063
Kimco Realty Corp. ......................................... 10,550 411,450
Mack-Cali Realty Corp. ..................................... 113,100 3,378,862
Public Storage, Inc. ....................................... 115,700 2,943,119
Reckson Associates Realty Corp. ............................ 99,600 2,191,200
The Rouse Co. .............................................. 627,200 14,817,600
United Dominion Realty Trust, Inc. ......................... 52,200 515,475
Vornado Realty Trust........................................ 266,600 9,414,312
Weingarten Realty Investors................................. 15,200 598,500
---------------
69,087,178
---------------
UTILITIES -- 0.0%
Electric Utilities -- 0.0%
Carolina Power & Light Co. ................................. 900 37,462
Duke Energy Corp. .......................................... 1,400 86,537
Edison International........................................ 700 19,469
New England Electric System................................. 500 24,469
Southern Co. ............................................... 1,600 43,100
Wisconsin Energy Corp. ..................................... 800 20,800
Gas & Pipeline Utilities -- 0.0%
Sempra Energy+.............................................. 500 11,500
Telephone -- 0.0%
SBC Communications, Inc. ................................... 2,400 129,600
---------------
372,937
---------------
TOTAL COMMON STOCK (cost $1,355,950,332).................... 1,750,608,795
---------------
<CAPTION>
PREFERRED STOCK -- 0.7%
-------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE -- 0.1%
Financial Services -- 0.1%
Devon Financing Trust, convertible $3.25.................... 30,700 1,807,463
REAL ESTATE -- 0.4%
Real Estate Investment Trusts -- 0.4%
General Growth Properties, Inc. convertible 7.25%........... 280,400 6,799,700
The Rouse Co., Series B convertible $3.00................... 16,000 656,000
Vornado Realty Trust, Series A convertible 6.50%............ 9,100 473,200
---------------
7,928,900
---------------
</TABLE>
- ---------------------
64
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<TABLE>
<CAPTION>
PREFERRED STOCK (CONTINUED) SHARES VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY -- 0.2%
Telecommunications -- 0.2%
AirTouch Communications, Inc., Series C convertible 4.25%... 18,997 $ 2,550,347
---------------
TOTAL PREFERRED STOCK (cost $11,424,783).................... 12,286,710
---------------
TOTAL INVESTMENT SECURITIES (cost $1,367,375,115)........... 1,762,895,505
---------------
PRINCIPAL
SHORT-TERM SECURITIES -- 2.6% AMOUNT
-------------------------------------------------------------------------------------------
FEDERAL AGENCY OBLIGATIONS -- 2.6%
Federal Home Loan Bank Discount Notes 4.75% due 02/03/99.... $16,780,000 16,775,572
Federal Home Loan Mortgage Discount Notes 4.70% due
02/08/99.................................................. 31,465,000 31,436,244
---------------
TOTAL FEDERAL AGENCY OBLIGATIONS (cost $48,211,816)......... 48,211,816
---------------
TOTAL SHORT-TERM SECURITIES (cost $48,211,816).............. 48,211,816
---------------
REPURCHASE AGREEMENT -- 1.8%
-------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 1.8%
Agreement with State Street Bank & Trust Co., bearing
interest at 4.70%, dated 01/29/99, to be repurchased
02/01/99 in the amount of $32,146,586 and collateralized
by $32,330,000 of Federal National Mortgage Association
bearing interest at 5.80%, due 03/10/00 and having an
approximate aggregate value of $33,099,357 (cost
$32,134,000).............................................. 32,134,000 32,134,000
---------------
TOTAL INVESTMENTS --
(cost $1,447,720,931) 100.2% 1,843,241,321
Liabilities in excess of other assets -- (0.2) (2,887,771)
------ ---------------
NET ASSETS -- 100.0% $1,840,353,550
====== ===============
</TABLE>
-----------------------------
+ Non-income producing securities
* Security represents an investment in an affiliated company
ADR -- American Depository Receipt
See Notes to Financial Statements
---------------------
65
<PAGE> 67
- ---------------------
SUNAMERICA SERIES TRUST
"DOGS" OF WALL STREET
PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK -- 100.1% SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 31.8%
Automotive -- 14.6%
Cooper Tire & Rubber Co..................................... 135,246 $ 2,899,336
General Motors Corp......................................... 36,737 3,297,146
Genuine Parts Co............................................ 81,044 2,583,277
Goodyear Tire & Rubber Co................................... 53,324 2,612,876
Retail -- 17.2%
American Greetings Corp., Class A........................... 66,884 2,641,918
International Flavors & Fragrances, Inc..................... 60,984 2,660,427
May Department Stores Co.................................... 44,426 2,682,220
Newell Co................................................... 65,302 2,714,114
Winn Dixie Stores, Inc...................................... 59,463 2,716,716
------------
24,808,030
------------
CONSUMER STAPLES -- 20.3%
Food, Beverage & Tobacco -- 20.3%
Bestfoods................................................... 49,221 2,476,432
ConAgra, Inc................................................ 83,735 2,721,387
H.J. Heinz & Co............................................. 47,113 2,653,051
Kellogg Co.................................................. 78,521 3,209,546
Philip Morris Cos., Inc..................................... 49,165 2,310,755
UST, Inc.................................................... 78,092 2,459,898
------------
15,831,069
------------
ENERGY -- 5.9%
Energy Sources -- 5.9%
Chevron Corp................................................ 31,826 2,378,994
Royal Dutch Petroleum Co. ADR............................... 55,247 2,213,333
------------
4,592,327
------------
FINANCE -- 3.4%
Financial Services -- 3.4%
Morgan (J.P.) & Co., Inc.................................... 24,982 2,635,601
------------
INDUSTRIAL & COMMERCIAL -- 16.3%
Business Services -- 6.3%
Bemis Co., Inc.............................................. 72,176 2,453,984
National Service Industries, Inc............................ 72,541 2,484,529
Machinery -- 3.3%
Caterpillar, Inc............................................ 58,648 2,540,192
Multi-Industry -- 3.6%
Minnesota Mining & Manufacturing Co......................... 36,610 2,841,851
Transportation -- 3.1%
Norfolk Southern Corp....................................... 86,436 2,382,392
------------
12,702,948
------------
</TABLE>
- ---------------------
66
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION & ENTERTAINMENT -- 3.1%
Entertainment Products -- 3.1%
Eastman Kodak Co............................................ 37,280 $ 2,437,180
INFORMATION TECHNOLOGY -- 6.9%
Electronics -- 3.2%
Emerson Electric Co......................................... 43,568 2,535,113
Telecommunications -- 3.7%
ALLTEL Corp................................................. 44,845 2,895,305
------------
5,430,418
------------
MATERIALS -- 12.4%
Chemicals -- 9.3%
Air Products & Chemicals, Inc............................... 69,712 2,344,066
du Pont (E.I.) de Nemours & Co.............................. 48,333 2,474,045
Nalco Chemical Co........................................... 89,880 2,471,700
Forest Products -- 3.1%
International Paper Co...................................... 61,246 2,423,045
------------
9,712,856
------------
TOTAL COMMON STOCK (cost $81,201,575)....................... 78,150,429
------------
TOTAL INVESTMENT SECURITIES (cost $81,201,575).............. 78,150,429
------------
PRINCIPAL
REPURCHASE AGREEMENT -- 2.2% AMOUNT
----------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 2.2%
Joint Repurchase Agreement Account (Note 3)
(cost $1,691,000)......................................... $ 1,691,000 1,691,000
------------
TOTAL INVESTMENTS --
(cost $82,892,575) 102.3% 79,841,429
Liabilities in excess of other assets -- (2.3) (1,779,580)
------ ------------
NET ASSETS -- 100.0% $78,061,849
====== ============
</TABLE>
-----------------------------
ADR -- American Depository Receipt
See Notes to Financial Statements.
---------------------
67
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- ---------------------
SUNAMERICA SERIES TRUST
PUTNAM GROWTH PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK -- 96.9% SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 15.4%
Housing -- 1.7%
Home Depot, Inc. ........................................... 141,600 $ 8,549,100
Retail -- 13.7%
Amazon.com, Inc.+........................................... 11,400 1,333,088
Best Buy Co., Inc.+......................................... 23,100 2,096,325
Costco Cos., Inc.+.......................................... 117,200 9,712,950
CVS Corp. .................................................. 213,200 11,672,700
Gap, Inc. .................................................. 45,000 2,888,437
Kroger Co.+................................................. 36,100 2,292,350
Safeway, Inc.+.............................................. 137,100 7,694,737
TJX Cos., Inc. ............................................. 213,100 6,299,769
Wal-Mart Stores, Inc. ...................................... 182,400 15,686,400
Walgreen Co. ............................................... 131,400 8,212,500
-------------
76,438,356
-------------
CONSUMER STAPLES -- 2.7%
Food, Beverage & Tobacco -- 1.2%
Philip Morris Cos., Inc. ................................... 51,600 2,425,200
Quaker Oats Co. ............................................ 36,600 2,035,875
Sara Lee Corp. ............................................. 55,600 1,417,800
Household Products -- 1.5%
Clorox Co. ................................................. 24,500 3,065,562
Colgate-Palmolive Co. ...................................... 800 64,350
Estee Lauder Cos., Inc., Class A............................ 49,900 4,094,919
-------------
13,103,706
-------------
ENERGY -- 1.6%
Energy Sources -- 1.6%
Exxon Corp. ................................................ 112,900 7,952,394
-------------
FINANCE -- 13.7%
Banks -- 2.8%
Charter One Financial, Inc. ................................ 21,000 588,000
Comerica, Inc. ............................................. 64,800 4,045,950
Fifth Third Bancorp......................................... 50,450 3,452,672
Firstar Corp. .............................................. 64,548 5,692,327
Northern Trust Corp. ....................................... 1,200 103,875
Financial Services -- 7.8%
American Express Co. ....................................... 27,000 2,777,625
Associates First Capital Corp., Class A..................... 54,400 2,206,600
Charles Schwab Corp. ....................................... 41,100 2,889,844
Citigroup, Inc. ............................................ 61,500 3,447,844
Federal Home Loan Mortgage Corp. ........................... 124,400 7,712,800
MBNA Corp. ................................................. 215,787 6,028,549
Merrill Lynch & Co., Inc. .................................. 32,000 2,432,000
Morgan Stanley, Dean Witter & Co. .......................... 42,400 3,680,850
Providian Financial Corp. .................................. 44,475 4,483,636
Wells Fargo Co. ............................................ 88,700 3,098,956
</TABLE>
- ---------------------
68
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance -- 3.1%
AFLAC, Inc. ................................................ 24,500 $ 1,050,438
American General Corp. ..................................... 105,800 7,544,862
American International Group, Inc.*......................... 65,375 6,729,539
-------------
67,966,367
-------------
HEALTHCARE -- 14.5%
Drugs -- 10.9%
Bristol-Myers Squibb Co. ................................... 13,700 1,756,169
Cardinal Health, Inc., Class A.............................. 53,500 3,955,656
Centocor, Inc.+............................................. 40,600 1,707,738
Lilly (Eli) & Co. .......................................... 88,200 8,263,237
Pfizer, Inc. ............................................... 76,000 9,775,500
Pharmacia & Upjohn, Inc. ................................... 76,400 4,393,000
Schering-Plough Corp. ...................................... 208,300 11,352,350
Warner-Lambert Co. ......................................... 178,100 12,856,594
Health Services -- 2.4%
IMS Health, Inc. ........................................... 101,200 3,706,450
McKesson HBOC, Inc. ........................................ 105,773 7,946,196
Medical Products -- 1.2%
Amgen, Inc.+................................................ 10,200 1,303,688
Biogen, Inc.+............................................... 28,700 2,819,775
Medtronic, Inc. ............................................ 23,400 1,864,687
-------------
71,701,040
-------------
INDUSTRIAL & COMMERCIAL -- 8.1%
Aerospace & Military Technology -- 1.0%
United Technologies Corp. .................................. 41,000 4,896,938
Business Services -- 1.5%
Quintiles Transnational Corp.+.............................. 41,300 2,137,275
Waste Management, Inc. ..................................... 106,400 5,313,350
Electrical Equipment -- 2.5%
General Electric Co. ....................................... 115,700 12,134,037
Multi-Industry -- 3.1%
Tyco International Ltd. .................................... 202,400 15,597,450
-------------
40,079,050
-------------
INFORMATION & ENTERTAINMENT -- 7.2%
Broadcasting & Media -- 5.4%
Interpublic Group of Cos., Inc. ............................ 82,800 6,551,550
Time Warner, Inc. .......................................... 199,800 12,487,500
Viacom, Inc., Class B NV+................................... 92,900 7,896,500
Leisure & Tourism -- 1.8%
Carnival Corp., Class A..................................... 125,100 6,137,719
Tricon Global Restaurants, Inc.+............................ 56,000 2,663,500
-------------
35,736,769
-------------
INFORMATION TECHNOLOGY -- 27.3%
Communication Equipment -- 1.1%
3Com Corp.+................................................. 40,600 1,908,200
Tellabs, Inc.+.............................................. 38,300 3,284,225
Computers & Business Equipment -- 9.2%
Cisco Systems, Inc.+........................................ 54,050 6,029,953
Computer Sciences Corp.+.................................... 63,200 4,333,150
</TABLE>
---------------------
69
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
INFORMATION TECHNOLOGY (continued)
Computers & Business Equipment (continued)
Dell Computer Corp.+........................................ 55,900 $ 5,590,000
EMC Corp.+.................................................. 89,200 9,711,650
International Business Machines Corp. ...................... 65,200 11,947,900
Pitney Bowes, Inc. ......................................... 60,200 4,142,513
Sun Microsystems, Inc.+..................................... 34,800 3,888,900
Electronics -- 3.4%
Intel Corp. ................................................ 95,800 13,501,813
Micron Technology, Inc.+.................................... 45,200 3,531,250
Software -- 5.6%
America Online, Inc.+....................................... 17,200 3,021,825
BMC Software, Inc. ......................................... 12,240 571,455
Compuware Corp.+............................................ 52,000 3,445,000
Comverse Technology, Inc.+.................................. 2,600 218,400
Microsoft Corp.+............................................ 117,400 20,545,000
Telecommunications -- 8.0%
AirTouch Communications, Inc.+.............................. 45,500 4,393,594
Ascend Communications, Inc.+................................ 53,200 4,645,025
General Instrument Corp.+................................... 63,000 2,236,500
Lucent Technologies, Inc. .................................. 129,000 14,520,562
Tele-Communications Ventures Group, Series A+............... 207,800 5,662,550
Tele-Communications, Inc., Series A+........................ 117,700 8,069,806
-------------
135,199,271
-------------
UTILITIES -- 6.4%
Electric Utilities -- 0.6%
PECO Energy Co. ............................................ 78,700 3,005,356
Telephone -- 5.8%
MCI WorldCom, Inc.+......................................... 163,700 13,055,075
SBC Communications, Inc. ................................... 143,300 7,738,200
Sprint Corp. ............................................... 93,500 7,807,250
-------------
31,605,881
-------------
TOTAL INVESTMENT SECURITIES (cost $326,249,351)............. 479,782,834
-------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 3.7% AMOUNT
-----------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 3.7%
Agreement with C.S. First Boston Corp., bearing interest at
4.68%, dated 01/29/99, to be repurchased 02/01/99 in the
amount of $18,196,094 and collateralized by $15,084,000 of
U.S. Treasury Bonds, bearing interest at 6.75%, due
08/15/26 and having an approximate aggregate value of
$18,615,931 (cost $18,189,000)............................ $18,189,000 18,189,000
-------------
TOTAL INVESTMENTS --
(cost $344,438,351) 100.6% 497,971,834
Liabilities in excess of other assets -- (0.6) (3,159,300)
------ -------------
NET ASSETS -- 100.0% $494,812,534
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
* Security represents an investment in an affiliated company
See Notes to Financial Statements
- ---------------------
70
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- ---------------------
SUNAMERICA SERIES TRUST
MFS GROWTH AND INCOME
PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK -- 92.3% SHARES VALUE
<S> <C> <C>
-----------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY -- 11.5%
Automotive -- 1.4%
Ford Motor Co. ............................................. 28,200 $ 1,732,537
General Motors Corp. ....................................... 22,500 2,019,375
Housing -- 1.6%
Black & Decker Corp. ....................................... 43,600 2,310,800
Home Depot, Inc. ........................................... 29,800 1,799,175
Retail -- 8.5%
Albertsons, Inc. ........................................... 17,000 1,037,000
American Stores Co. ........................................ 11,800 427,750
CVS Corp. .................................................. 31,100 1,702,725
Dayton Hudson Corp. ........................................ 24,200 1,542,750
Fred Meyer, Inc.+........................................... 22,950 1,434,375
Kroger Co.+................................................. 21,700 1,377,950
Newell Co. ................................................. 55,800 2,319,188
Nordstrom, Inc. ............................................ 28,000 1,165,500
Office Depot, Inc.+......................................... 31,100 1,080,725
Rite Aid Corp. ............................................. 65,700 3,227,512
Safeway, Inc.+.............................................. 65,000 3,648,125
TJX Cos., Inc. ............................................. 80,800 2,388,650
Wal-Mart Stores, Inc........................................ 15,900 1,367,400
-------------
30,581,537
-------------
CONSUMER STAPLES -- 9.6%
Food, Beverage & Tobacco -- 5.3%
Anheuser-Busch Cos., Inc. .................................. 43,100 3,046,631
Coca-Cola Co. .............................................. 4,600 301,013
Hershey Foods Corp. ........................................ 52,800 2,970,000
Interstate Bakeries Corp.................................... 26,400 648,450
Nestle SA+.................................................. 400 733,413
PepsiCo, Inc. .............................................. 10,900 425,781
Philip Morris Cos., Inc. ................................... 76,200 3,581,400
Ralston-Purina Group........................................ 88,900 2,433,638
Household Products -- 4.3%
Clorox Co. ................................................. 8,900 1,113,612
Colgate-Palmolive Co. ...................................... 13,200 1,061,775
Gillette Co. ............................................... 56,400 3,313,500
Kimberly-Clark Corp. ....................................... 42,200 2,102,088
Procter & Gamble Co. ....................................... 34,200 3,107,925
Unilever NV................................................. 10,300 787,950
-------------
25,627,176
-------------
ENERGY -- 4.3%
Energy Sources -- 4.3%
BP Amoco PLC ADR............................................ 49,082 3,981,777
Chevron Corp. .............................................. 4,500 336,375
Exxon Corp. ................................................ 52,600 3,705,013
Mobil Corp. ................................................ 32,000 2,806,000
</TABLE>
---------------------
71
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY (continued)
Energy Sources (continued)
Texaco, Inc. ............................................... 9,200 $ 435,850
USX-Marathon Group, Inc. ................................... 11,600 263,900
-------------
11,528,915
-------------
FINANCE -- 16.6%
Banks -- 3.4%
BankAmerica Corp. .......................................... 23,919 1,599,583
Bankers Trust New York Corp. ............................... 9,400 817,800
Comerica, Inc. ............................................. 6,900 430,819
Fleet Financial Group, Inc. ................................ 8,400 372,225
National City Corp. ........................................ 27,900 1,982,644
Northern Trust Corp. ....................................... 13,500 1,168,594
Sao Paulo Istituto Mobilare Italiano SpA.................... 48,100 784,625
U.S. Bancorp................................................ 57,400 1,933,662
Financial Services -- 6.5%
Associates First Capital Corp., Class A..................... 63,600 2,579,775
Federal Home Loan Mortgage Corp. ........................... 57,400 3,558,800
MBIA, Inc. ................................................. 14,300 937,544
State Street Corp. ......................................... 31,400 2,245,100
Torchmark, Inc. ............................................ 55,100 1,807,969
Transamerica Corp. ......................................... 35,400 1,982,400
Washington Mutual, Inc. .................................... 31,700 1,331,400
Wells Fargo & Co. .......................................... 79,300 2,770,543
Insurance -- 6.7%
AFLAC, Inc. ................................................ 20,100 861,788
Allstate Corp. ............................................. 55,300 2,077,206
Chubb Corp. ................................................ 11,400 669,750
CIGNA Corp. ................................................ 41,800 3,443,275
Equitable Cos., Inc. ....................................... 24,900 1,736,775
EXEL Ltd., Class A.......................................... 12,100 772,131
Hartford Financial Services, Inc. .......................... 64,100 3,329,194
Lincoln National Corp. ..................................... 25,500 2,124,469
Progressive Corp............................................ 22,600 2,823,587
-------------
44,141,658
-------------
HEALTHCARE -- 13.5%
Drugs -- 8.7%
American Home Products Corp. ............................... 79,600 4,671,525
Bristol-Myers Squibb Co. ................................... 34,100 4,371,194
Lilly (Eli) & Co. .......................................... 11,900 1,114,881
Merck & Co., Inc. .......................................... 2,600 381,550
Pfizer, Inc. ............................................... 46,500 5,981,062
Pharmacia & Upjohn, Inc. ................................... 50,700 2,915,250
Schering-Plough Corp. ...................................... 22,900 1,248,050
Warner-Lambert Co. ......................................... 34,200 2,468,813
Health Services -- 1.8%
HEALTHSOUTH Corp.+.......................................... 41,900 568,269
McKesson HBOC, Inc. ........................................ 32,900 2,471,612
Tenet Healthcare Corp.+..................................... 6,500 134,875
United HealthCare Corp. .................................... 36,500 1,633,375
Medical Products -- 3.0%
Guidant Corp. .............................................. 48,000 2,829,000
Johnson & Johnson Co. ...................................... 40,000 3,400,000
Medtronic, Inc. ............................................ 22,210 1,769,897
-------------
35,959,353
-------------
</TABLE>
- ---------------------
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL -- 9.3%
Aerospace & Military Technology -- 3.5%
Allied Signal, Inc. ........................................ 55,700 $ 2,172,300
General Dynamics Corp. ..................................... 23,600 1,371,750
United Technologies Corp. .................................. 48,000 5,733,000
Business Services -- 0.9%
Rentokil Initial PLC........................................ 122,200 902,960
Service Corp. International................................. 76,700 1,217,612
Waste Management, Inc....................................... 5,300 264,669
Electrical Equipment -- 1.6%
General Electric Co......................................... 40,700 4,268,412
Machinery -- 1.1%
Federal-Mogul Corp.......................................... 28,500 1,688,625
Illinois Tool Works, Inc.................................... 19,700 1,188,156
Multi-Industry -- 1.4%
Tyco International Ltd...................................... 49,400 3,806,888
Transportation -- 0.8%
Burlington Northern Santa Fe Corp........................... 11,800 408,575
Canadian National Railway Co................................ 29,600 1,583,600
-------------
24,606,547
-------------
INFORMATION & ENTERTAINMENT -- 5.2%
Broadcasting & Media -- 3.8%
Gannett Co., Inc............................................ 20,900 1,375,481
Infinity Broadcasting Corp., Class A........................ 5,400 149,513
MediaOne Group, Inc.+....................................... 31,800 1,782,787
Reuters Group PLC........................................... 102,700 1,563,374
Reuters Group PLC ADR....................................... 14,800 1,356,050
Time Warner, Inc............................................ 38,700 2,418,750
Tribune Co.................................................. 22,800 1,457,775
Leisure & Tourism -- 1.4%
Disney (Walt) Co............................................ 66,000 2,178,000
McDonald's Corp............................................. 19,200 1,513,200
-------------
13,794,930
-------------
INFORMATION TECHNOLOGY -- 12.7%
Communication Equipment -- 0.1%
Alcatel Alsthom ADR......................................... 8,600 197,800
Computers & Business Equipment -- 2.9%
Cisco Systems, Inc.+........................................ 9,375 1,045,898
Sun Microsystems, Inc.+..................................... 14,100 1,575,675
Xerox Corp.................................................. 40,300 4,997,200
Electronics -- 2.3%
Emerson Electric Co......................................... 34,300 1,995,831
Honeywell, Inc.............................................. 5,100 332,456
Intel Corp.................................................. 26,900 3,791,219
Software -- 5.4%
BMC Software, Inc.+......................................... 16,800 784,350
Computer Associates International, Inc...................... 49,300 2,495,813
DST Systems, Inc.+.......................................... 17,600 1,090,100
Microsoft Corp.+............................................ 43,600 7,630,000
Oracle Corp.+............................................... 43,600 2,414,350
Telecommunications -- 2.0%
Alltel Corp................................................. 57,000 3,680,063
Lucent Technologies, Inc.................................... 14,900 1,677,181
-------------
33,707,936
-------------
</TABLE>
---------------------
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<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
MATERIALS -- 0.4%
Chemicals -- 0.4%
Air Products & Chemicals, Inc............................... 26,400 $ 887,700
du Pont (E.I.) de Nemours & Co.............................. 4,500 230,344
-------------
1,118,044
-------------
UTILITIES -- 9.2%
Electric Utilities -- 2.9%
CMS Energy Corp............................................. 18,000 770,625
Firstenergy Corp............................................ 29,700 922,556
GPU, Inc.................................................... 17,500 745,937
Houston Industries, Inc. ................................... 5,700 606,338
New Century Energies, Inc................................... 12,500 550,000
PECO Energy Co.............................................. 29,100 1,111,256
Pinnacle West Capital Corp.................................. 21,300 852,000
Texas Utilities Co.......................................... 36,000 1,581,750
Unicom Corp................................................. 20,100 716,063
Gas & Pipeline Utilities -- 0.6%
Columbia Gas Energy Group, Inc. ............................ 30,200 1,562,850
Telephone -- 5.7%
Ameritech Corp.............................................. 13,800 898,725
Bell Atlantic Corp.......................................... 34,600 2,076,000
BellSouth Corp.............................................. 31,400 1,401,225
MCI WorldCom, Inc.+......................................... 50,904 4,059,594
SBC Communications, Inc..................................... 69,700 3,763,800
Sprint Corp................................................. 31,000 2,588,500
Sprint Corp. (PCS Group)+................................... 9,600 306,000
-------------
24,513,219
-------------
TOTAL COMMON STOCK (cost $225,768,055)...................... 245,579,315
-------------
<CAPTION>
PREFERRED STOCK -- 0.1%
-----------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE -- 0.1%
Drugs -- 0.1%
Monsanto Co. 6.50% (cost $218,845).......................... 4,400 215,050
-------------
TOTAL INVESTMENT SECURITIES (cost $225,986,900)............. 245,794,365
-------------
<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 6.3% AMOUNT
-----------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE SHORT-TERM NOTES -- 4.3%
Student Loan Marketing Discount Note 4.62% due 2/01/99...... $11,600,000 11,600,000
FEDERAL AGENCY OBLIGATIONS -- 2.0%
Federal Home Loan Mortgage Discount Notes 4.68% due
2/02/99................................................... 5,300,000 5,299,311
-------------
TOTAL SHORT-TERM SECURITIES (cost $16,899,311).............. 16,899,311
-------------
TOTAL INVESTMENTS -- (cost $242,886,211) 98.7% 262,693,676
Other assets less liabilities -- 1.3 3,375,266
------ -------------
NET ASSETS -- 100.0% $266,068,942
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities.
ADR -- American Depository Receipt
See Notes to Financial Statements.
- ---------------------
74
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SUNAMERICA SERIES TRUST
ALLIANCE GROWTH PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK -- 99.6% SHARES VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER DISCRETIONARY -- 14.7%
Housing -- 6.2%
Home Depot, Inc. ........................................... 1,517,900 $ 91,643,212
Lowe's Cos., Inc. .......................................... 413,500 24,112,219
Retail -- 8.5%
Dayton Hudson Corp. ........................................ 572,600 36,503,250
Gap, Inc. .................................................. 59,800 3,838,413
Kohl's Corp.+............................................... 430,600 29,173,150
Kroger Co.+................................................. 287,400 18,249,900
Rite Aid Corp. ............................................. 385,100 18,918,037
Wal-Mart Stores, Inc. ...................................... 610,500 52,503,000
---------------
274,941,181
---------------
CONSUMER STAPLES -- 1.8%
Food, Beverage & Tobacco -- 1.2%
Philip Morris Cos., Inc. ................................... 486,000 22,842,000
Household Products -- 0.6%
Colgate-Palmolive Co. ...................................... 124,200 9,990,337
---------------
32,832,337
---------------
FINANCE -- 15.4%
Banks -- 2.8%
BankAmerica Corp. .......................................... 439,400 29,384,875
Fifth Third Bancorp......................................... 93,400 6,392,063
U.S. Bancorp................................................ 509,400 17,160,412
Financial Services -- 11.6%
Associates First Capital Corp., Class A..................... 814,262 33,028,502
Citigroup, Inc. ............................................ 339,950 19,058,447
Federal Home Loan Mortgage Corp. ........................... 355,400 22,034,800
Federal National Mortgage Association....................... 258,700 18,852,763
MBNA Corp. ................................................. 2,347,400 65,580,488
Morgan Stanley, Dean Witter & Co. .......................... 324,100 28,135,931
Washington Mutual, Inc. .................................... 725,700 30,479,400
Insurance -- 1.0%
American International Group, Inc.*......................... 76,900 7,915,894
Progressive Corp. .......................................... 81,400 10,169,912
---------------
288,193,487
---------------
HEALTHCARE -- 14.0%
Drugs -- 10.1%
Bristol-Myers Squibb Co. ................................... 450,500 57,748,469
Merck & Co., Inc. .......................................... 52,100 7,645,675
Pfizer, Inc. ............................................... 456,000 58,653,000
Schering-Plough Corp. ...................................... 974,300 53,099,350
Warner-Lambert Co. ......................................... 146,800 10,597,125
Health Services -- 3.9%
IMS Health, Inc. ........................................... 505,400 18,510,275
McKesson HBOC, Inc. ........................................ 723,420 54,346,927
---------------
260,600,821
---------------
</TABLE>
---------------------
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<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL -- 6.9%
Aerospace & Military Technology -- 1.8%
United Technologies Corp. .................................. 287,000 $ 34,278,562
Electrical Equipment -- 0.5%
General Electric Co. ....................................... 88,300 9,260,463
Multi-Industry -- 4.6%
Tyco International Ltd. .................................... 1,104,000 85,077,000
---------------
128,616,025
---------------
INFORMATION & ENTERTAINMENT -- 1.8%
Leisure & Tourism -- 1.8%
Delta Air Lines, Inc. ...................................... 94,800 5,172,525
Northwest Airlines Corp., Class A+.......................... 496,800 13,599,900
UAL Corp.+.................................................. 228,700 14,236,575
---------------
33,009,000
---------------
INFORMATION TECHNOLOGY -- 42.8%
Communication Equipment -- 6.8%
Nokia Corp., Class A ADR.................................... 875,900 126,129,600
Computers & Business Equipment -- 16.4%
Cisco Systems, Inc.+........................................ 783,800 87,442,687
Compaq Computer Corp. ...................................... 24,800 1,181,100
Dell Computer Corp.+........................................ 1,167,800 116,780,000
EMC Corp.+.................................................. 652,900 71,084,488
Sun Microsystems, Inc.+..................................... 265,100 29,624,925
Electronics -- 5.2%
AMP, Inc. .................................................. 277,300 14,592,912
Intel Corp. ................................................ 582,900 82,152,469
Software -- 4.5%
America Online, Inc.+....................................... 95,300 16,743,019
Microsoft Corp.+............................................ 322,100 56,367,500
Netscape Communications Corp.+.............................. 156,600 11,559,037
Telecommunications -- 9.9%
AirTouch Communications, Inc.+.............................. 1,209,300 116,773,032
Liberty Media Group, Series A+.............................. 647,900 34,662,650
Lucent Technologies, Inc. .................................. 233,900 26,328,369
Tele-Communications, Inc., Class A+......................... 106,100 7,274,481
---------------
798,696,269
---------------
UTILITIES -- 2.2%
Telephone -- 2.2%
MCI WorldCom, Inc.+......................................... 512,700 40,887,825
---------------
TOTAL INVESTMENT SECURITIES (cost $1,279,072,458)........... 1,857,776,945
---------------
</TABLE>
- ---------------------
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<CAPTION>
PRINCIPAL
SHORT-TERM SECURITIES -- 1.3% AMOUNT VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSIT -- 1.3%
Cayman Island Time Deposit with State Street Bank & Trust
Co. 4.50% due 2/01/99 (cost $23,083,000).................. $23,083,000 $ 23,083,000
---------------
TOTAL INVESTMENTS --
(cost $1,302,155,458) 100.9% 1,880,859,945
Liabilities in excess of other assets -- (0.9) (15,936,076)
------ ------ ---------------
NET ASSETS -- 100.0% $1,864,923,869
====== ===============
</TABLE>
-----------------------------
+ Non-income producing securities
* Security represents an investment in an affiliated company
ADR -- American Depository Receipt
See Notes to Financial Statements.
---------------------
77
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- ---------------------
SUNAMERICA SERIES TRUST
GLOBAL EQUITIES PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK -- 94.3% SHARES VALUE
<S> <C> <C>
-----------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
AUSTRALIA -- 0.7%
Coca-Cola Amatil Ltd. (Consumer Staples).................... 202,700 $ 828,706
National Australia Bank Ltd. (Finance)...................... 138,000 2,319,420
-------------
3,148,126
-------------
DENMARK -- 0.8%
Ratin AS, Class B (Multi-industry).......................... 19,000 3,951,070
-------------
FINLAND -- 2.7%
Enso OY, Series R (Materials)............................... 186,400 1,678,170
Nokia Corp., Class A ADR (Information Technology)+.......... 75,638 11,048,621
-------------
12,726,791
-------------
FRANCE -- 5.2%
Assurances Generales de France (Finance)+................... 35,700 2,094,030
Banque Nationale de Paris (Finance)+........................ 50,000 4,544,158
Compagnie de St. Gobain (Materials)......................... 14,286 2,000,720
Compagnie Francaise d' Etudes de Construction Technip
(Industrial & Commercial)................................. 26,000 2,305,329
Sanofi SA (Healthcare)...................................... 7,400 1,455,267
Schneider SA (Industrial & Commercial)+..................... 41,200 2,393,222
Suez Lyonnaise des Eaux (Multi-industry).................... 25,000 5,155,161
Valeo SA (Consumer Discretionary)........................... 47,400 4,170,462
-------------
24,118,349
-------------
GERMANY -- 1.5%
DaimlerChrysler AG (Consumer Discretionary)+................ 16,000 1,667,839
Mannesmann AG (Industrial & Commercial)..................... 16,000 2,262,587
Merck KGAA (Healthcare)..................................... 37,780 1,387,169
Schmalbach-Lubeca AG (Materials)............................ 13,658 1,630,202
-------------
6,947,797
-------------
GREECE -- 0.4%
Panafon Hellenic Telecom SA GDR (Information Technology)+... 54,000 1,850,130
-------------
HONG KONG -- 0.3%
China Telecom (Hong Kong) Ltd. (Information Technology)+.... 622,000 1,111,746
Johnson Electric Holdings Ltd. (Information Technology)..... 94,500 231,104
-------------
1,342,850
-------------
INDIA -- 0.2%
Videsh Sanchar Nigam Ltd GDR (Information Technology)+...... 104,000 1,092,000
-------------
IRELAND -- 0.5%
CRH PLC (Industrial & Commercial)........................... 134,100 2,156,126
-------------
</TABLE>
- ---------------------
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<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
ITALY -- 1.6%
Banca di Roma (Finance)+.................................... 1,800,000 $ 2,670,225
ENI SpA (Energy)............................................ 389,000 2,308,262
UniCredito Italiano SpA (Finance)........................... 480,000 2,613,615
-------------
7,592,102
-------------
JAPAN -- 8.3%
Bridgestone Corp. (Consumer Discretionary).................. 108,000 2,374,035
Canon, Inc. (Information Technology)........................ 60,000 1,300,806
Credit Saison Co., Ltd. (Finance)........................... 72,000 1,542,347
Daito Trust Construction Co. (Industrial & Commercial)...... 125,130 1,325,673
Daiwa Securities Co., Ltd. (Finance)........................ 300,000 1,106,849
FamilyMart Co., Ltd. (Consumer Discretionary)............... 77,200 3,779,975
Fuji Photo Film Co., Ltd. (Information & Entertainment)..... 90,000 3,328,305
Honda Motor Co., Ltd. (Consumer Discretionary).............. 54,000 2,010,948
Japan Tobacco, Inc. (Consumer Staples)...................... 423 4,120,426
KAO Corp. (Consumer Staples)................................ 194,000 3,930,003
Rohm Co., Ltd. (Information Technology)..................... 12,200 1,151,588
Takeda Chemical Industries Ltd. (Healthcare)................ 132,000 4,722,210
TDK Corp. (Information Technology).......................... 30,000 2,472,307
Yamanouchi Pharmaceutical Co., Ltd. (Healthcare)............ 172,000 5,263,566
-------------
38,429,038
-------------
MEXICO -- 0.3%
Fomento Economico Mexicano SA de CV , Class B ADR (Consumer
Staples).................................................. 62,000 1,371,750
-------------
NETHERLANDS -- 3.9%
Akzo Nobel NV (Materials)................................... 47,070 1,883,440
Equant NV (Information Technology)+......................... 63,900 5,032,125
ING Groep NV (Finance)...................................... 83,000 4,840,168
Koninklijke Ahold NV (Consumer Discretionary)............... 86,800 3,374,510
Wolters Kluwer NV (Information & Entertainment)+............ 14,000 2,768,327
-------------
17,898,570
-------------
SPAIN -- 3.5%
Endesa SA (Utilities)....................................... 128,000 3,563,393
Repsol SA (Energy).......................................... 72,000 3,908,146
Tabacalera SA, Series A (Consumer Staples).................. 233,590 5,408,915
Telefonica SA (Utilities)................................... 72,000 3,294,301
Telefonica SA new shares (Utilities)........................ 72,000 65,477
-------------
16,240,232
-------------
SWEDEN -- 1.9%
Astra AB, Class A (Healthcare).............................. 97,000 2,098,327
Autoliv, Inc. ADR (Consumer Discretionary).................. 90,000 3,726,266
ForeningsSparbanken AB, Class A (Finance)................... 105,000 2,790,366
-------------
8,614,959
-------------
SWITZERLAND -- 3.3%
Novartis AG (Healthcare).................................... 2,800 5,254,575
Schindler Holding AG (Industrial & Commercial).............. 350 615,771
Schindler Holding registered AG (Industrial & Commercial)... 960 1,560,093
Schweizerische Rueckversicherungs-Gesellschaft (Consumer
Discretionary)+........................................... 970 2,411,807
Zurich Allied AG (Finance)+................................. 7,380 5,459,521
-------------
15,301,767
-------------
</TABLE>
---------------------
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM -- 8.2%
Bank of Scotland (Finance).................................. 313,596 $ 3,979,016
Beazer Group PLC (Industrial & Commercial).................. 532,000 1,260,738
British Aerospace PLC (Industrial & Commercial)............. 150,725 1,144,742
British Airways PLC (Information & Entertainment)........... 406,907 2,370,550
Diageo PLC (Consumer Staples)............................... 264,992 2,967,643
Dixons Group PLC (Information Technology)................... 210,200 3,514,611
Kingfisher PLC (Consumer Discretionary)..................... 198,944 2,031,531
Ladbroke Group PLC (Information & Entertainment)............ 418,289 1,559,177
Orange PLC (Information Technology)+........................ 8,100 119,972
Reuters Group PLC (Information & Entertainment)............. 205,000 3,120,659
Royal & Sun Alliance Insurance Group PLC (Finance).......... 72,000 548,907
Tomkins PLC (Multi-industry)................................ 720,395 2,608,220
United News & Media PLC (Information & Entertainment)....... 198,200 1,807,025
Vodafone Group PLC (Information Technology)................. 299,000 5,830,964
Whitbread PLC (Consumer Staples)............................ 204,410 2,953,571
Williams PLC (Multi-industry)............................... 397,200 2,055,799
-------------
37,873,125
-------------
UNITED STATES -- 51.0%
AES Corp. (Utilities)....................................... 141,000 4,749,937
America Online, Inc. (Information Technology)+.............. 24,000 4,216,500
American International Group, Inc. (Finance)*............... 45,050 4,637,334
Avon Products, Inc. (Consumer Staples)...................... 103,000 3,804,563
Bank One Corp. (Finance).................................... 99,800 5,227,025
BankAmerica Corp. (Finance)................................. 92,000 6,152,500
Bristol-Myers Squibb Co. (Healthcare)....................... 73,000 9,357,687
Cardinal Health, Inc., Class A (Healthcare)................. 40,000 2,957,500
Carnival Corp., Class A (Information & Entertainment)....... 69,000 3,385,313
Chase Manhattan Corp. (Finance)............................. 82,000 6,308,875
Cisco Systems, Inc. (Information Technology)+............... 43,000 4,797,187
Citigroup, Inc. (Finance)................................... 70,599 3,957,956
COMPAQ Computer Corp. (Information Technology).............. 142,600 6,791,325
Computer Sciences Corp. (Information Technology)+........... 58,200 3,990,337
Dayton Hudson Corp. (Consumer Discretionary)................ 59,200 3,774,000
Dell Computer Corp. (Information Technology)+............... 96,400 9,640,000
Federal Home Loan Mortgage Corp. (Finance).................. 58,000 3,596,000
Harley-Davidson, Inc. (Consumer Discretionary).............. 98,800 5,137,600
Hartford Life, Inc., Class A (Finance)...................... 67,500 3,805,313
Home Depot, Inc. (Consumer Discretionary)................... 100,200 6,049,575
Household International, Inc. (Finance)..................... 106,720 4,689,010
Humana, Inc. (Healthcare)................................... 93,300 1,667,738
IMS Health, Inc. (Healthcare)............................... 66,000 2,417,250
International Business Machines Corp. (Information
Technology)............................................... 24,500 4,489,625
Kroger Co. (Consumer Discretionary)+........................ 113,000 7,175,500
Liberty Media Group, Class A (Information Technology)+...... 170,825 9,139,137
MBIA, Inc. (Finance)........................................ 68,000 4,458,250
MBNA Corp. (Finance)........................................ 181,987 5,084,262
MCI WorldCom, Inc. (Utilities)+............................. 65,600 5,231,600
McKesson HBOC, Inc. (Healthcare)............................ 74,000 5,559,250
Microsoft Corp. (Information Technology)+................... 38,500 6,737,500
Morgan Stanley, Dean Witter & Co. (Finance)................. 40,000 3,472,500
Nautica Enterprises, Inc. (Consumer Discretionary)+......... 179,500 2,827,125
Philip Morris Cos., Inc. (Consumer Staples)................. 124,500 5,851,500
PMI Group, Inc. (Finance)................................... 54,300 2,328,113
Rite Aid Corp. (Consumer Discretionary)..................... 72,100 3,541,913
Sanmina Corp. (Information Technology)+..................... 105,000 6,956,250
Schering-Plough Corp. (Healthcare).......................... 118,000 6,431,000
Solectron Corp. (Information Technology)+................... 85,200 7,588,125
Staples, Inc. (Information Technology)+..................... 147,000 4,207,875
</TABLE>
- ---------------------
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<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES (continued)
Tele-Communications, Inc., Series A (Information
Technology)+.............................................. 69,300 $ 4,751,381
Tenet Healthcare Corp. (Healthcare)+........................ 101,000 2,095,750
TJX Cos., Inc. (Consumer Discretionary)..................... 141,000 4,168,312
Tyco International Ltd. (Industrial & Commercial)........... 122,000 9,401,625
Tyson Foods, Inc., Class A (Consumer Staples)............... 40,000 837,500
United Technologies Corp. (Industrial & Commercial)......... 32,200 3,845,888
USX-Marathon Group, Inc. (Energy)........................... 79,000 1,797,250
Warner-Lambert Co. (Healthcare)............................. 45,600 3,291,750
Waste Management, Inc. (Industrial & Commercial)............ 78,200 3,905,113
-------------
236,284,619
-------------
TOTAL COMMON STOCK (cost $350,181,344)...................... 436,939,401
-------------
<CAPTION>
PREFERRED STOCK -- 0.3%
-----------------------------------------------------------------------------------------
<S> <C> <C>
GERMANY -- 0.3%
Henkel KGaA (Multi-industry) (cost $1,779,489).............. 21,960 1,510,263
-------------
TOTAL INVESTMENT SECURITIES (cost $351,960,833)............. 438,449,664
-------------
PRINCIPAL
SHORT-TERM SECURITIES -- 4.6% AMOUNT
-----------------------------------------------------------------------------------------
TIME DEPOSIT -- 4.6%
Cayman Island Time Deposit with State Street Bank & Trust Co.
4.50% due 2/01/99 (cost $21,085,000)...................... $21,085,000 21,085,000
-------------
TOTAL INVESTMENTS --
(cost $373,045,833) 99.2% 459,534,664
Other assets less liabilities -- 0.8 3,603,764
------ -------------
NET ASSETS -- 100.0% $463,138,428
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
* Security represents an investment in an affiliated company
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
See Notes to Financial Statements.
---------------------
81
<PAGE> 83
- ---------------------
SUNAMERICA SERIES TRUST
INTERNATIONAL GROWTH
AND INCOME PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK -- 94.9% SHARES VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C>
ARGENTINA -- 1.2%
YPF Sociedad Anonima ADR (Energy)........................... 52,499 $ 1,673,406
-------------
AUSTRALIA -- 1.7%
Cable & Wireless Optus Ltd. (Information Technology)+*...... 65,700 155,982
Pioneer International Ltd. (Industrial & Commercial)+....... 751,000 1,530,914
St. George Bank Ltd. (Finance)*(1).......................... 16,300 770,175
-------------
2,457,071
-------------
BELGIUM -- 0.5%
Electrabel SA (Utilities)................................... 1,771 775,076
-------------
CANADA -- 4.7%
Abitibi Consolidated, Inc. (Materials)...................... 54,000 502,875
Abitibi Consolidated, Inc. (Materials)...................... 105,968 998,173
Bank of Nova Scotia (Finance)............................... 122,651 2,644,223
BCE, Inc. (Information Technology).......................... 21,000 944,478
National Bank of Canada (Finance)........................... 102,416 1,593,138
-------------
6,682,887
-------------
FRANCE -- 11.7%
Assurances Generales de France (Finance)+................... 26,756 1,569,408
Groupe Danone (Consumer Staples)............................ 9,131 2,563,777
Michelin SA, Class B (Consumer Discretionary)............... 27,584 1,056,074
Scor (Finance).............................................. 13,346 758,553
Societe Generale d'Enterprises SA (Finance)+................ 9,471 1,701,053
Societe Nationale Elf Aquitaine SA (Energy)................. 26,288 2,850,827
STMicroelectronics NV (Information Technology).............. 23,652 2,476,238
Suez Lyonnaise des Eaux (Multi-industry).................... 4,037 832,455
Vivendi (Multi-industry).................................... 9,747 2,851,966
-------------
16,660,351
-------------
GERMANY -- 5.7%
Bayer AG (Multi-industry)................................... 31,587 1,208,255
Deutsche Bank AG (Finance)+................................. 15,665 887,688
Hoechst AG (Materials)...................................... 75,452 3,242,108
VEBA AG (Utilities)......................................... 45,999 2,739,962
-------------
8,078,013
-------------
GREECE -- 1.2%
OTE Greek Telecommunications (Information Technology)....... 58,002 1,747,859
-------------
HONG KONG -- 0.3%
Hong Kong Electric Holdings Ltd. (Utilities)................ 136,000 398,410
-------------
</TABLE>
- ---------------------
82
<PAGE> 84
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C>
INDIA -- 1.0%
Mahanagar Telephone Nigam Ltd. GDR (Information
Technology)+.............................................. 130,713 $ 1,460,718
-------------
IRELAND -- 1.8%
CRH PLC (Industrial & Commercial)........................... 154,111 2,522,674
-------------
ITALY -- 5.8%
ENI SpA (Energy)............................................ 487,743 2,894,186
Istituto Nazionale Delle Assicurazioni SpA (Finance)........ 579,695 1,397,013
Telecom Italia SpA (Information Technology)................. 417,367 3,909,401
-------------
8,200,600
-------------
JAPAN -- 13.0%
Canon, Inc. (Information Technology)........................ 61,000 1,322,486
Chubu Electric Power (Utilities)............................ 22,800 421,585
Fuji Photo Film Co., Ltd. (Information & Entertainment)..... 31,000 1,146,416
Honda Motor Co., Ltd. (Consumer Discretionary).............. 53,000 1,973,708
Kirin Brewery Co., Ltd. (Consumer Staples).................. 142,000 1,724,736
Nikko Securities Co., Ltd. (Finance)........................ 925,000 2,711,090
Nippon Telegraph & Telephone Corp. (Utilities).............. 247 1,997,207
Promise Co. (Finance)....................................... 57,360 2,759,095
Ricoh Co., Ltd. (Information Technology).................... 178,000 1,733,891
Sony Corp. (Information Technology)......................... 26,500 1,930,305
Yamanouchi Pharmaceutical Co., Ltd. (Healthcare)............ 28,000 856,859
-------------
18,577,378
-------------
MEXICO -- 1.7%
Cemex SA de CV (Materials).................................. 238,927 588,780
Fomento Economico Mexicano SA de CV (Consumer Staples)+..... 792,311 1,757,220
-------------
2,346,000
-------------
NETHERLANDS -- 6.9%
ABN Amro Holdings NV (Finance).............................. 24,113 468,719
Akzo Nobel NV (Materials)................................... 80,407 3,217,373
Gucci Group NV (Consumer Discretionary)..................... 3,200 220,620
ING Groep NV (Finance)...................................... 44,619 2,601,969
Philips Electronics NV (Information Technology)............. 46,349 3,371,982
-------------
9,880,663
-------------
NEW ZEALAND -- 1.2%
Telecommunications Corp. of New Zealand Ltd. ADR
(Information Technology).................................. 150,230 725,594
Telecommunications Corp. of New Zealand Ltd. IR (Information
Technology)............................................... 382,513 997,977
-------------
1,723,571
-------------
NORWAY -- 0.7%
Den Norske Bank ASA (Finance)............................... 214,366 917,860
-------------
PORTUGAL -- 1.3%
Portugal Telecom SA (Information Technology)................ 37,734 1,900,210
-------------
SINGAPORE -- 1.1%
Development Bank of Singapore Ltd. (Finance)................ 205,100 1,575,827
-------------
</TABLE>
---------------------
83
<PAGE> 85
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C>
SOUTH KOREA -- 0.3%
Pohang Iron & Steel Co., Ltd. ADR (Materials)............... 22,677 $ 425,194
-------------
SPAIN -- 2.8%
Iberdrola SA (Utilities).................................... 127,234 2,221,566
Telefonica de Espana SA (Utilities)......................... 39,355 1,800,656
Telefonica SA (Utilities)................................... 569 26,034
-------------
4,048,256
-------------
SWEDEN -- 5.3%
ForeningsSparbanken AB, Class A (Finance)................... 32,659 867,910
Pharmacia & Upjohn, Inc. ADR (Healthcare)................... 60,529 3,461,886
SKF AB, Series B (Materials)+............................... 82,605 1,060,493
Svenska Cellulosa AB, Class B (Materials)................... 54,949 1,178,088
Volvo AB, Class B (Consumer Discretionary).................. 35,161 959,228
-------------
7,527,605
-------------
SWITZERLAND -- 5.7%
Julius Baer Holdings AG (Finance)........................... 519 1,765,693
Nestle SA (Consumer Staples)+............................... 545 999,276
Novartis AG (Healthcare).................................... 398 746,900
Swisscom AG (Utilities)+.................................... 5,310 2,322,398
UBS AG (Finance)+........................................... 6,968 2,259,812
-------------
8,094,079
-------------
UNITED KINGDOM -- 19.3%
Allied Zurich PLC (Finance)+................................ 146,485 2,261,241
Anglian Water PLC (Utilities)............................... 91,800 1,155,726
Bass PLC (Consumer Staples)+................................ 194,268 2,621,597
Blue Circle Industries PLC (Materials)...................... 158,500 787,747
British Airways PLC (Information & Entertainment)........... 122,400 713,075
British America Tobacco PLC (Consumer Staples)+............. 71,057 736,128
British Petroleum Co. PLC (Energy).......................... 127,334 1,735,104
BTR Ltd PLC (Multi-industry)................................ 972,963 1,745,314
Cookson Group PLC (Materials)............................... 738,069 1,615,472
Diageo PLC (Consumer Staples)............................... 214,595 2,403,248
HSBC Holdings PLC (Finance)+................................ 97,515 2,428,814
National Westminster Bank PLC (Finance)..................... 83,303 1,532,686
P & O Finance BV (Industrial & Commercial)+................. 68,808 751,896
Scottish & Newcastle PLC (Consumer Staples)................. 96,188 1,123,906
Scottish Power PLC (Utilities).............................. 145,819 1,547,835
Siebe PLC (Industrial & Commercial)......................... 565,435 1,916,905
Tomkins PLC (Multi-industry)................................ 659,632 2,388,225
-------------
27,464,919
-------------
TOTAL COMMON STOCK (cost $129,725,665)...................... 135,138,627
-------------
WARRANTS -- 0.0%+ WARRANTS
----------------------------------------------------------------------------------------------
FRANCE -- 0.0%
Allianz AG (Finance)........................................ 1 8
-------------
TOTAL INVESTMENT SECURITIES (cost $129,725,665)............. 135,138,635
-------------
</TABLE>
- ---------------------
84
<PAGE> 86
<TABLE>
PRINCIPAL
REPURCHASE AGREEMENT -- 7.9% AMOUNT VALUE
----------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 7.9%
Agreement with C.S. First Boston Corp., bearing interest at
4.68%, dated 01/29/99, to be repurchased 02/01/99 in the
amount of $11,301,406 and collateralized by $9,368,000 of
U.S. Treasury Bonds, bearing interest at 6.75% due
08/15/26 and having an approximate aggregate value of
$11,561,525 (cost $11,297,000)............................ $11,297,000 $ 11,297,000
-------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS --
(cost $141,022,665) 102.8% 146,435,635
Liabilities in excess of other assets -- (2.8) (3,938,964)
------ -------------
NET ASSETS -- 100.0% $142,496,671
====== =============
</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
---------------------
85
<PAGE> 87
<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 $ 57,280
*USD 2,649,758 JPY 307,666,700 3/15/99 17,365
------------
$ 74,645
============
</TABLE>
<TABLE>
<CAPTION>
GROSS UNREALIZED
DEPRECIATION
----
---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*USD 1,797,616 GBP 1,065,500 3/22/99 (46,338)
*USD 1,808,665 GBP 1,065,500 3/22/99 (57,388)
*USD 1,800,801 JPY 207,092,100 3/15/99 (5,546)
*USD 3,647,038 JPY 408,241,200 3/15/99 (108,048)
*JPY 923,000,000 USD 7,056,575 3/15/99 (944,792)
------------
(1,162,112)
------------
Net Unrealized Depreciation............ $(1,087,467)
============
</TABLE>
-----------------------------
* Represents fully offsetting forward foreign currency contracts
that do not have additional market risk but have continued
counterparty settlement risk.
<TABLE>
<S> <C>
GBP -- Pound Sterling
JPY -- Japanese Yen
USD -- United States Dollar
</TABLE>
See Notes to Financial Statements
- ---------------------
86
<PAGE> 88
- ---------------------
SUNAMERICA SERIES TRUST
INTERNATIONAL DIVERSIFIED
EQUITIES PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK -- 85.5% SHARES VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRALIA -- 2.4%
Amcor Holdings Ltd. (Materials)............................. 33,476 $ 157,521
AMP Ltd. (Finance)+......................................... 43,800 530,974
Australian Gas Light Co., Ltd. (Utilities).................. 17,198 120,759
Boral Ltd. (Industrial & Commercial)........................ 56,251 80,413
Brambles Industries Ltd. (Industrial & Commercial).......... 10,704 291,562
Broken Hill Proprietary Co., Ltd. (Energy).................. 102,400 753,266
Coca-Cola Amatil Ltd. (Consumer Staples).................... 38,452 157,205
Coles Myer Ltd. (Consumer Discretionary).................... 54,481 299,178
Crown Ltd. (Information & Entertainment).................... 73,822 33,937
CSR Ltd. (Industrial & Commercial).......................... 53,975 126,412
Email Ltd. (Multi-industry)................................. 17,989 25,954
F.H. Faulding & Co., Ltd. (Healthcare)+..................... 6,536 35,805
Fosters Brewing Group Ltd. (Consumer Staples)............... 86,773 255,193
General Property Trust (Real Estate)........................ 65,406 122,744
Gio Australia Holdings Ltd. (Finance)....................... 31,624 93,402
Goodman Fielder Wattie Ltd. (Consumer Staples).............. 63,811 61,885
Leighton Holdings Ltd. (Industrial & Commercial)............ 15,469 62,833
Lend Lease Corp., Ltd. (Finance)............................ 27,302 362,025
M.I.M. Holdings Ltd. (Materials)............................ 107,990 46,245
National Australia Bank Ltd. (Finance)...................... 70,480 1,184,585
News Corp., Ltd. (Information & Entertainment).............. 92,240 669,175
Normandy Mining Ltd. (Materials)............................ 118,381 103,029
North Ltd. (Materials)...................................... 51,012 76,778
Orica Ltd. (Materials)+..................................... 14,779 75,667
Pacific Dunlop Ltd. (Multi-industry)........................ 52,118 90,259
Pioneer International Ltd. (Industrial & Commercial)+....... 44,023 89,741
QBE Insurace Group Ltd. (Finance)........................... 20,113 80,455
Rio Tintro, Ltd. (Materials)................................ 13,371 165,831
Santos Ltd. (Energy)........................................ 29,740 86,677
Schroders Property Fund (Real Estate)....................... 27,586 45,463
Smith (Howard) Ltd. (Multi-industry)........................ 9,256 63,827
Southcorp Ltd. (Multi-industry)............................. 30,738 103,561
Stockland Trust Group (Real Estate)......................... 14,973 38,943
TABCORP Holdings Ltd. (Information & Entertainment)......... 16,774 119,472
Telstra Corp. (Information Technology)+..................... 252,247 1,372,486
Western Mining Corp. Holdings Ltd. (Materials)+............. 67,701 208,484
Westfield Trust (Real Estate)............................... 53,428 122,775
Westfield Trust new shares (Real Estate)+................... 1,061 2,439
Westpac Banking Corp., Ltd. (Finance)....................... 96,035 665,258
-------------
8,982,218
-------------
AUSTRIA -- 0.3%
Austria Mikro Systeme International AG (Information
Technology)............................................... 154 4,797
Austria Tabak AG (Consumer Staples)......................... 1,137 87,773
Austrian Airlines Osterreische Luftverkehrs AG (Information
& Entertainment)+......................................... 1,267 43,928
Bank Austria AG (Finance)................................... 5,831 258,507
Bau Holdings AG (Consumer Discretionary).................... 243 9,110
BBAG Oesterrichische Brau-Beteiligungs AG (Consumer
Staples).................................................. 474 24,139
</TABLE>
---------------------
87
<PAGE> 89
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRIA (continued)
Boehler-Uddeholm AG (Materials)............................. 571 $ 25,120
BWT AG (Industrial & Commercial)............................ 87 18,296
Flughafen Wien AG (Industrial & Commercial)................. 1,097 49,257
Generali Holding Vienna AG (Finance)........................ 366 86,538
Lenzing AG (Materials)+..................................... 191 11,572
Mayr-Melnhof Karton AG (Materials).......................... 619 28,843
Oesterreichische Elektrizitaetswirtschafts AG, Class A
(Utilities)............................................... 1,578 255,149
OMV AG (Energy)............................................. 1,381 122,448
Radex Heraklith Industriebeteiligungs AG (Materials)........ 724 16,254
VA Technologies AG (Industrial & Commercial)................ 775 52,947
Wienerberger Baustoffindustrie AG (Materials)............... 446 80,282
-------------
1,174,960
-------------
FRANCE -- 8.8%
Accor SA (Information & Entertainment)...................... 1,879 384,472
Alcatel Alsthom Compagnie General d'Electricite
(Information Technology).................................. 7,133 831,926
AXA SA de CV (Finance)+..................................... 15,084 2,191,353
Banque Nationale de Paris (Finance)+........................ 9,925 902,015
Bouygues SA (Consumer Discretionary)........................ 1,282 336,639
Canal Plus (Information & Entertainment).................... 1,592 491,516
Cap Gemini SA (Industrial & Commercial)..................... 3,116 615,619
Carrefour SA (Consumer Discretionary)....................... 1,868 1,249,650
Compagnie de St. Gobain (Materials)......................... 4,088 572,515
Compagnie Financiere de Paribas SA (Finance)................ 7,683 733,627
Eridania Beghin-Say SA (Consumer Staples)................... 1,447 238,507
Essilor International SA (Healthcare)....................... 533 222,967
Etablissements Economiques du Casino Guichard-Perrachon SA
(Consumer Discretionary).................................. 4,225 410,637
France Telecom SA (Information Technology).................. 31,097 2,930,474
Groupe Danone (Consumer Staples)............................ 3,715 1,043,087
Imetal SA (Materials)....................................... 772 84,247
Klepierre (Real Estate)..................................... 6,110 567,451
L'Air Liquide SA (Materials)................................ 4,009 656,697
L'Oreal (Consumer Staples).................................. 2,890 2,089,392
Lafarge SA (Materials)...................................... 5,003 438,196
Lagardere Group S.C.A. (Industrial & Commercial)............ 5,260 230,323
Legrand SA (Information Technology)......................... 1,478 330,983
Michelin SA, Class B (Consumer Discretionary)............... 5,857 224,240
Moet Henessy Louis Vuitton (Consumer Staples)............... 4,160 1,011,980
Pathe SA (Information & Entertainment)...................... 406 108,457
Pernod-Ricard (Consumer Staples)............................ 3,266 205,679
Peugeot SA (Consumer Discretionary)......................... 2,481 421,913
Pinault-Printemps-Redoute SA (Consumer Discretionary)....... 5,070 928,471
Promodes (Consumer Discretionary)........................... 903 623,076
Rhone-Poulenc Rorer SA, Class A (Materials)................. 15,756 829,262
Sagem SA (Industrial & Commercial).......................... 237 155,719
Sanofi SA (Healthcare)...................................... 5,157 1,014,164
Schneider SA (Industrial & Commercial)+..................... 6,311 366,593
Silic Societe Immobiliere de Location pour L'Industrie et le
Commerce (Real Estate).................................... 1,825 305,169
Simco SA registered (Real Estate)........................... 5,727 520,813
Societe BIC SA (Information Technology)..................... 2,508 151,101
Societe Eurafrance SA (Finance)............................. 200 120,496
Societe Generale d'Enterprises SA (Finance)+................ 4,520 811,821
Societe Nationale Elf Aquitaine SA (Energy)................. 11,936 1,294,411
Sodexho Alliance SA (Industrial & Commercial)............... 1,524 270,602
Sophia SA (Real Estate)..................................... 7,500 323,974
Suez Lyonnaise des Eaux (Multi-industry).................... 5,892 1,214,968
</TABLE>
- ---------------------
88
<PAGE> 90
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C>
FRANCE (continued)
Thomson CSF (Industrial & Commercial)....................... 5,801 $ 234,097
Total SA, Class B (Energy).................................. 11,410 1,160,843
Unibail (Union du Credit -- Bail Immobilier) SA (Real
Estate)................................................... 4,245 540,456
USINOR SACILOR (Materials).................................. 12,014 153,640
Valeo SA (Consumer Discretionary)........................... 3,189 280,582
Vivendi (Multi-industry).................................... 7,285 2,131,587
-------------
32,956,407
-------------
GERMANY -- 7.4%
Adidas-Salomon AG (Consumer Discretionary).................. 1,788 148,881
Agiv AG (Multi-industry).................................... 1,811 42,161
Allianz Holding AG (Finance)................................ 9,023 3,312,977
AMB Aachener Und Muenchner Beteiligungs AG (Finance)........ 775 99,551
AXA Colonia Konzern AG (Finance)............................ 911 94,238
BASF AG (Materials)......................................... 22,775 841,408
Bayer AG (Multi-industry)................................... 26,195 1,002,002
Beiersdorf AG, Series A (Healthcare)........................ 17 1,169
Bilfinger & Berger Bau AG (Consumer Discretionary).......... 2,396 46,302
Brau Und Brunnen AG (Consumer Staples)...................... 42 2,960
Continental AG (Consumer Discretionary)..................... 4,332 116,708
DaimlerChrysler AG (Consumer Discretionary)+................ 36,394 3,793,709
Degussa AG (Materials)...................................... 2,675 103,996
Deutsche Bank AG (Finance)+................................. 18,551 1,051,229
Deutsche Lufthansa AG (Information & Entertainment)......... 13,205 278,450
Deutsche Telekom AG (Information Technology)................ 78,744 3,580,489
Deutz AG (Industrial & Commercial)+......................... 2,563 20,832
Dresdner Bank AG (Finance).................................. 17,988 736,123
FAG Kugelfischer George Schaefer AG (Industrial &
Commercial)............................................... 5,541 40,942
Heidelberg Zement AG (Materials)............................ 736 50,617
Hochtief AG (Industrial & Commercial)....................... 3,892 117,685
HypoVereinsbank AG (Finance)................................ 14,817 963,432
Karstadt AG (Consumer Discretionary)........................ 443 187,332
Linde AG (Industrial & Commercial).......................... 292 148,041
MAN AG (Industrial & Commercial)............................ 476 128,510
Mannesmann AG (Industrial & Commercial)..................... 13,195 1,865,927
Merck KGAA (Healthcare)..................................... 7,945 291,717
Metro AG (Consumer Discretionary)........................... 8,685 705,896
Munchener Ruckversicherungs AG new shares (Finance)......... 2,974 719,412
Munchener Ruckversicherungs AG registered (Finance)+........ 2,974 726,849
Preussag AG (Multi-industry)................................ 627 320,734
RWE AG (Utilities).......................................... 15,665 746,121
SAP AG (Information Technology)............................. 2,230 773,160
Schering AG (Healthcare).................................... 2,832 381,967
Siemens AG (Industrial & Commercial)........................ 20,644 1,467,865
STRABAG AG (Industrial & Commercial)........................ 9 506
Thyssen AG (Industrial & Commercial)+....................... 1,478 250,337
VEBA AG (Utilities)......................................... 18,110 1,078,735
Viag AG (Multi-industry).................................... 1,073 581,813
Volkswagen AG (Consumer Discretionary)...................... 10,730 842,835
-------------
27,663,618
-------------
HONG KONG -- 1.3%
Bank of East Asia Ltd. (Finance)............................ 51,600 73,583
Cathay Pacific Airways Ltd. (Industrial & Commercial)....... 106,000 103,280
Cheung Kong Holdings Ltd. (Real Estate)..................... 75,000 520,242
CLP Holdings Ltd. (Utilities)............................... 85,500 388,396
Hang Lung Development Co., Ltd. (Real Estate)............... 52,000 48,317
Hang Seng Bank Ltd. (Finance)............................... 62,600 523,094
Hong Kong & China Gas Co., Ltd. (Utilities)+................ 160,000 185,835
</TABLE>
---------------------
89
<PAGE> 91
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C>
HONG KONG (continued)
Hong Kong & Shanghai Hotels Ltd. (Information &
Entertainment)............................................ 47,000 $ 28,508
Hong Kong Telecommunications Ltd. (Information
Technology)............................................... 423,606 686,075
Hopewell Holdings Ltd. (Real Estate)........................ 45,400 19,042
Hutchison Whampoa Ltd. (Multi-industry)+.................... 127,000 901,430
Hysan Development Co., Ltd. (Real Estate)................... 38,000 43,891
Johnson Electric Holdings Ltd. (Information Technology)..... 25,700 62,850
New World Development Co., Ltd. (Real Estate)............... 75,713 148,518
Regal Hotels International Ltd. (Information &
Entertainment)............................................ 212,000 19,698
Sino Land Co., Ltd. (Real Estate)........................... 132,787 64,690
South China Morning Post (Holdings) Ltd. (Information &
Entertainment)............................................ 82,000 35,980
Sun Hung Kai Properties Ltd. (Real Estate)+................. 81,000 533,115
Swire Pacific Ltd., Class A (Multi-industry)................ 54,500 232,804
Television Broadcasting Ltd. (Information &
Entertainment)............................................ 16,000 42,742
Wharf Holdings Ltd. (Multi-industry)........................ 86,000 99,331
-------------
4,761,421
-------------
ITALY -- 5.6%
Alitalia SpA (Information & Entertainment).................. 82,254 302,947
Assicurazione Generali SpA (Finance)........................ 56,730 2,411,844
Banca Commerciale Italiana SpA (Finance)+................... 102,200 650,585
Banca Intesa SpA (Finance).................................. 109,900 562,180
Banca Popolare di Milano (Finance).......................... 13,000 109,651
Benetton Group SpA (Consumer Discretionary)................. 96,780 162,822
Burgo (Cartiere) SpA (Materials)............................ 5,700 32,073
Ciga SpA (Information & Entertainment)+..................... 227,130 175,569
Edison SpA (Utilities)...................................... 39,000 425,156
ENI SpA (Energy)............................................ 456,000 2,705,828
Falck Acciaierie & Ferriere Lombarde (Materials)............ 2,000 15,005
Fiat SpA (Consumer Discretionary)........................... 235,720 760,991
Fiat SpA nonconvertible (Consumer Discretionary)............ 56,870 101,819
Immobilare Metanopoli SpA (Real Estate)..................... 51,300 55,983
Impreglio SpA (Industrial & Commercial)..................... 25,000 20,518
Istituto Mobilare Italiano SpA (Finance).................... 83,222 1,357,547
Istituto Nazionale Delle Assicurazioni SpA (Finance)........ 226,010 544,664
Italcementi Fabbriche Riunicemento SpA (Materials).......... 8,550 94,471
Italcementi Fabbriche Riunicemento SpA nonconvertible
(Materials)............................................... 12,650 63,272
Italgas-Societa Italiana Per il Gas SpA (Utilities)+........ 25,900 166,935
La Rinascente SpA (Consumer Discretionary).................. 13,000 131,965
Magneti Marelli SpA (Industrial & Commercial)............... 20,000 31,147
Mediaset SpA (Information & Entertainment).................. 62,500 626,633
Mediobanca SpA (Finance).................................... 36,940 428,314
Montedison SpA (Multi-industry)............................. 224,650 228,557
Montedison SpA nonconvertible (Multi-industry).............. 72,100 61,470
Olivetti Spa (Information Technology)+...................... 160,720 632,137
Parmalat Finanziaria SpA (Consumer Staples)+................ 97,920 154,722
Pirelli SpA (Consumer Discretionary)........................ 124,000 329,839
Reno De Medici SpA (Materials).............................. 1,300 3,089
Riunione Adriatica de Sicur Ras SpA (Finance)............... 27,500 321,984
Riunione Adriatica de Sicur Ras SpA nonconvertible
(Finance)................................................. 165 1,454
S.A.I Societa Assicuratrice Industriale SpA (Finance)....... 7,450 88,499
Sirti SpA (Consumer Discretionary).......................... 10,600 60,248
SNIA BPD SpA (Multi-industry)............................... 53,000 84,949
Telecom Italia Mobile SpA RNC (Information Technology)...... 90,000 377,514
Telecom Italia Mobile SpA (Information Technology).......... 365,400 2,488,057
Telecom Italia SpA (Information Technology)................. 203,055 1,901,979
Telecom Italia SpA nonconvertible (Information
Technology)+.............................................. 54,709 370,033
</TABLE>
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ITALY (continued)
UniCredito Italiano SpA (Finance)........................... 245,783 $ 1,338,296
Unione Immobiliare SpA (Real Estate)+....................... 699,831 420,836
-------------
20,801,582
-------------
JAPAN -- 16.3%
77 Bank, Ltd. (Finance)..................................... 14,000 129,736
Acom Co., Ltd. (Finance).................................... 5,300 318,900
Ajinomoto Co., Inc. (Consumer Staples)...................... 54,000 604,681
AOKI Corp. (Industrial & Commercial)........................ 56,400 24,309
Asahi Bank Ltd. (Finance)................................... 77,000 345,158
Asahi Breweries Ltd. (Consumer Staples)..................... 34,400 464,973
Asahi Chemical Industry Co., Inc. (Materials)............... 100,000 422,396
Asahi Glass Co., Ltd. (Materials)........................... 94,200 565,176
Bank of Tokyo-Mitsubishi Ltd. (Finance)..................... 212,400 2,530,380
Bank of Yokohama Ltd. (Finance)............................. 28,000 56,239
Bridgestone Corp. (Consumer Discretionary).................. 37,400 822,120
Canon, Inc. (Information Technology)........................ 41,200 893,220
Casio Computer Co., Ltd. (Information Technology)........... 20,600 150,942
Chiba Bank Ltd. (Finance)................................... 27,000 112,650
Chugai Pharmaceutical Co., Ltd. (Healthcare)................ 34,400 368,598
Credit Saison Co., Ltd. (Finance)........................... 6,000 128,529
Dai Nippon Printing Co., Ltd. (Industrial & Commercial)..... 38,400 561,079
Daiei, Inc. (Consumer Discretionary)........................ 35,200 97,099
Daikin Industries Ltd. (Industrial & Commercial)............ 34,400 297,132
Daiwa House Industry Co., Ltd. (Consumer Discretionary)..... 34,400 353,474
Daiwa Securities Co., Ltd. (Finance)........................ 128,000 472,255
Denso Corp. (Consumer Discretionary)........................ 12,859 254,398
East Japan Railway Co. (Industrial & Commercial)............ 199 1,224,826
Ebara Corp. (Industrial & Commercial)....................... 22,600 230,861
Fanuc Ltd. (Information Technology)......................... 14,200 499,427
Fuji Bank Ltd. (Finance).................................... 203,000 855,713
Fuji Photo Film Co., Ltd. (Information & Entertainment)..... 20,600 761,812
Fujitsu Ltd. (Information Technology)....................... 82,400 1,081,808
Furukawa Electric Co., Ltd. (Industrial & Commercial)....... 24,600 106,030
Gunma Bank Ltd. (Finance)................................... 14,000 110,426
Hankyu Corp. (Industrial & Commercial)...................... 43,000 196,457
Hazama Corp. (Industrial & Commercial)...................... 32,300 20,047
Hitachi Ltd. (Information Technology)+...................... 166,800 1,200,621
Honda Motor Co., Ltd. (Consumer Discretionary).............. 40,000 1,489,591
Industrial Bank of Japan Ltd. (Finance)..................... 93,000 468,187
Ito-Yokado Co., Ltd. (Consumer Discretionary)............... 16,600 1,046,041
Japan Airlines Co., Ltd. (Information & Entertainment)...... 105,100 273,611
Japan Energy Corp. (Energy)................................. 79,400 81,450
Joyo Bank Ltd. (Finance).................................... 14,000 50,687
Jusco Co., Ltd. (Consumer Discretionary).................... 17,800 345,244
Kajima Corp. (Industrial & Commercial)...................... 65,800 170,165
Kansai Electric Power Co., Inc. (Utilities)................. 42,800 861,497
KAO Corp. (Consumer Staples)................................ 43,800 887,289
Kawasaki Steel Corp. (Materials)............................ 53,000 75,385
Kinki Nippon Railway Co., Ltd. (Industrial & Commercial).... 76,500 435,240
Kirin Brewery Co., Ltd. (Consumer Staples).................. 67,800 823,501
Komatsu Ltd. (Industrial & Commercial)...................... 60,800 321,283
Kubota Ltd. (Industrial & Commercial)....................... 95,000 259,601
Kumagai Gumi Co., Ltd. (Industrial & Commercial)............ 103,800 77,847
Kyocera Corp. (Information Technology)...................... 9,900 528,262
Kyowa Hakko Kogyo Co., Ltd. (Healthcare).................... 31,400 162,948
Marubeni Corp. (Consumer Discretionary)..................... 90,200 154,733
Marui Co., Ltd. (Consumer Discretionary).................... 7,800 140,192
Matsushita Electric Industrial Co., Ltd. (Industrial &
Commercial)+.............................................. 85,000 1,447,869
</TABLE>
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JAPAN (continued)
Mitsubishi Chemical Corp. (Materials)....................... 101,000 $ 214,180
Mitsubishi Corp. (Consumer Discretionary)................... 89,000 510,961
Mitsubishi Electric Corp. (Information Technology).......... 118,800 424,999
Mitsubishi Estate Co., Ltd. (Real Estate)................... 28,000 260,920
Mitsubishi Heavy Industries Ltd. (Industrial &
Commercial)............................................... 181,400 736,515
Mitsubishi Materials Corp. (Materials)...................... 63,600 111,295
Mitsubishi Trust & Banking Corp. (Finance).................. 44,800 363,791
Mitsui & Co. (Consumer Discretionary)....................... 91,600 550,366
Mitsui Engineering & Shipbuilding Co., Ltd. (Industrial &
Commercial)............................................... 65,800 61,259
Mitsui Fudosan Co., Ltd. (Real Estate)...................... 22,000 175,423
Mitsui Trust & Banking Co., Ltd. (Finance).................. 2,000 2,069
Mitsukoshi Ltd. (Consumer Discretionary).................... 35,200 92,851
Murata Manufacturing Co., Ltd. (Information Technology)..... 14,800 687,660
Mycal Corp. (Consumer Discretionary)........................ 21,600 134,994
NEC Corp. (Information Technology).......................... 58,800 603,688
NGK Insulators Ltd. (Industrial & Commercial)............... 34,400 408,927
Nippon Express Co., Ltd. (Industrial & Commercial).......... 25,400 131,593
Nippon Fire & Marine Insurance Co., Ltd. (Finance).......... 31,400 108,001
Nippon Light Metal Co., Ltd. (Materials).................... 31,400 33,835
Nippon Meat Packers, Inc. (Consumer Staples)................ 32,400 483,186
Nippon Oil Co., Ltd. (Energy)............................... 96,200 313,466
Nippon Steel Corp. (Materials).............................. 374,000 664,144
Nippon Telegraph & Telephone Corp. (Utilities).............. 507 4,099,530
Nippon Yusen Kabushiki Kaish (Industrial & Commercial)...... 95,000 282,531
Nissan Motor Co., Ltd. (Consumer Discretionary)............. 120,600 436,636
NKK Corp. (Materials)....................................... 197,200 117,295
Nomura Securities Co., Ltd. (Finance)....................... 66,000 576,906
Odakyu Electric Railway Co., Ltd. (Industrial &
Commercial)............................................... 37,000 132,684
Oji Paper Co., Ltd. (Materials)+............................ 67,800 353,012
Orix Corp. (Finance)........................................ 1,500 102,539
Osaka Gas Co., Ltd. (Utilities)............................. 134,200 397,955
Penta Ocean Construction Co., Ltd. (Consumer
Discretionary)............................................ 31,400 55,760
Pioneer Electronic Corp. (Industrial & Commercial).......... 9,600 170,475
Rohm Co., Ltd. (Information Technology)..................... 4,800 453,084
Sakura Bank Ltd. (Finance).................................. 127,400 311,897
Sankyo Co., Ltd. (Healthcare)............................... 24,600 515,305
Sanwa Bank Ltd. (Finance)................................... 65,000 625,878
Sanyo Electric Co., Ltd. (Information Technology)........... 86,000 263,920
Secom Co., Ltd. (Industrial & Commercial)................... 8,000 640,662
Sega Enterprises Ltd. (Information & Entertainment)......... 6,800 133,943
Sekisui House Ltd. (Consumer Discretionary)................. 33,400 336,289
Sharp Corp. (Information Technology)........................ 56,800 581,196
Shimano, Inc. (Information & Entertainment)................. 8,800 196,854
Shimizu Corp. (Consumer Discretionary)...................... 48,000 165,510
Shin-Etsu Chemical Co., Ltd. (Materials).................... 14,000 341,537
Shiseido Co., Ltd. (Healthcare)............................. 14,600 165,376
Shizuoka Bank Ltd. (Finance)................................ 19,000 235,852
Showa Denko KK (Materials).................................. 63,800 53,898
SMC Corp (Industrial & Commercial).......................... 2,400 178,130
Sony Corp. (Information Technology)......................... 14,100 1,027,068
Sumitomo Bank Ltd. (Finance)................................ 81,000 1,015,948
Sumitomo Chemical Co., Ltd. (Materials)..................... 126,400 453,277
Sumitomo Corp. (Consumer Discretionary)..................... 64,400 350,299
Sumitomo Electric Industries Ltd. (Industrial &
Commercial)............................................... 45,200 512,374
Sumitomo Forestry Co., Ltd. (Materials)..................... 19,800 143,714
Sumitomo Metal Industries Ltd. (Materials).................. 120,800 135,373
Sumitomo Metal Mining Co., Ltd. (Materials)................. 32,400 107,530
Sumitomo Osaka Cement Co., Ltd. (Materials)................. 32,200 62,732
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JAPAN (continued)
Taisei Corp. (Consumer Discretionary)....................... 67,800 $ 123,905
Taisho Pharmaceutical Co., Ltd. (Healthcare)................ 20,600 578,906
Taiyo Yuden Co., Ltd. (Information Technology).............. 39,000 463,945
Takeda Chemical Industries Ltd. (Healthcare)................ 39,200 1,402,353
Teijin Ltd. (Materials)..................................... 67,800 236,705
Tobu Railway Co., Ltd. (Industrial & Commercial)............ 43,200 129,594
Tohoku Electric Power Co., Inc. (Utilities)................. 22,900 378,031
Tokai Bank Ltd. (Finance)................................... 64,000 302,883
Tokio Marine & Fire Insurance Co., Ltd. (Finance)........... 93,000 1,058,230
Tokyo Electric Power Co., Inc. (Utilities).................. 55,500 1,208,030
Tokyo Electron Ltd. (Information Technology)................ 4,100 188,733
Tokyo Gas Co., Ltd. (Utilities)............................. 126,400 309,449
Tokyo Corp. (Industrial & Commercial)....................... 53,000 136,606
Toppan Printing Co., Ltd. (Industrial & Commercial)......... 44,200 519,328
Toray Industries, Inc. (Materials).......................... 99,100 478,393
Toto Ltd. (Materials)....................................... 34,200 272,114
Toyobo Co., Ltd. (Consumer Discretionary)................... 67,800 89,422
Toyota Motor Corp. (Consumer Discretionary)................. 138,200 3,645,463
Ube Industries Ltd. (Materials)............................. 63,800 85,246
Yokogawa Electric Corp. (Information Technology)............ 35,000 184,647
-------------
60,961,170
-------------
NETHERLANDS -- 3.7%
ABN Amro Holdings NV (Finance).............................. 43,999 855,271
AEGON NV (Finance).......................................... 17,000 1,868,703
Akzo Nobel NV (Materials)................................... 10,200 408,139
Buhrmann NV (Materials)..................................... 2,720 44,833
Elsevier NV (Information & Entertainment)................... 18,500 290,212
Getronics NV (Information Technology)+...................... 2,623 133,282
Hagemeyer NV (Consumer Discretionary)....................... 2,500 90,087
Heineken NV (Consumer Staples).............................. 9,475 511,609
ING Groep NV (Finance)...................................... 28,342 1,652,771
KLM Royal Dutch Air Lines NV (Information &
Entertainment)............................................ 2,521 67,202
Koninklijke Ahold NV (Consumer Discretionary)............... 16,253 631,865
Koninklijke KPN NV BT (Information Technology).............. 13,791 764,250
Koninklijke Nedlloyd NV (Industrial & Commercial)........... 750 9,847
Oce-Van Der Grinten NV (Information Technology)+............ 2,859 84,987
Philips Electronics NV (Information Technology)............. 10,950 796,634
Rodamco NV (Real Estate).................................... 9,967 246,427
Royal Dutch Petroleum Co. (Energy).......................... 66,000 2,652,151
Stork NV (Industrial & Commercial).......................... 1,488 28,417
TNT Post Group NV (Industrial & Commercial)+................ 14,889 517,061
UNI-INVEST NV (Finance)..................................... 17,315 275,560
Unilever NV (Consumer Staples).............................. 20,000 1,530,065
Vedior NV (Industrial & Commercial)+........................ 2,300 43,663
Wolters Kluwer NV (Information & Entertainment)+............ 2,193 433,639
-------------
13,936,675
-------------
NORWAY -- 0.1%
Choice Hotels Scandinavia ASA+ (Information &
Entertainment)+........................................... 90,200 139,133
Linstow ASA (Real Estate)................................... 42,670 232,633
-------------
371,766
-------------
PORTUGAL -- 1.2%
Banco Commercial Portugues SA (Finance)+.................... 17,023 534,859
Banco Espirito Santo e Comercial de Lisboa (Finance)........ 10,400 310,806
Banco Pinto & Sotto Mayor (Finance)......................... 20 438
BPI-SGPS SA (Finance)+...................................... 6,900 262,760
Brisa-Auto Estradas de Portugal SA (Industrial &
Commercial)............................................... 5,200 304,894
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PORTUGAL (continued)
Cimpor-Cimentos de Portugal SGPS SA (Industrial &
Commercial)+.............................................. 7,800 $ 230,089
CIN-Corparacao Industrial de Norte SA (Materials)........... 300 11,612
Companhia de Seguros Tranquilidade (Finance)................ 1,500 44,862
Electricidad de Portugal SA (Utilities)..................... 52,300 1,278,218
INAPA-Investimentos Participacoes e Gestao SA (Materials)... 800 7,275
Jeronimo Martins SGPS SA (Consumer Staples)................. 5,900 317,568
Portucel Industrial-Empresa Produtora de Celulose SA
(Materials)............................................... 9,300 55,713
Portugal Telecom SA (Information Technology)................ 17,300 871,194
Sociedade de Construcoes Soares da Costa SA (Industrial &
Commercial)+.............................................. 300 1,248
Somague-Sociedade Gestora de Participacoes SA (Industrial &
Commercial)............................................... 1,800 9,208
Sonae Investimentos-Sociedade Gestora de Participacoes
Sociais SA (Industrial & Commercial)...................... 3,900 161,329
Unicer-Uniao Cervejjeira SA (Consumer Staples).............. 1,500 35,620
-------------
4,437,693
-------------
SINGAPORE -- 1.6%
Asia Foods & Properties Ltd. (Consumer Staples)............. 22,666 3,740
City Developments Ltd. (Real Estate)........................ 84,000 342,553
Comfort Group Ltd. (Industrial & Commercial)................ 55,000 16,416
Creative Technology Ltd. (Information Technology)+.......... 9,500 142,051
Cycle & Carriage Ltd. (Consumer Discretionary).............. 31,000 121,838
DBS Land Ltd. (Real Estate)................................. 111,000 150,230
Development Bank of Singapore Ltd. alien shares (Finance)... 59,000 453,310
First Capital Corp., Ltd. (Real Estate)..................... 31,000 21,436
Fraser & Neave Ltd. (Consumer Staples)...................... 30,800 107,400
Hotel Properties Ltd. (Real Estate)......................... 42,000 17,996
Inchcape Motors Ltd. (Multi-industry)....................... 17,000 18,186
Keppel Corp., Ltd. (Multi-industry)......................... 94,000 226,667
NatSteel Ltd. (Materials)................................... 38,000 42,222
Neptune Orient Lines Ltd. (Industrial & Commercial)......... 42,000 13,280
Overseas Chinese Banking Corp. Ltd. alien shares
(Finance)................................................. 109,534 750,942
Overseas Union Enterprise Ltd. (Information &
Entertainment)............................................ 26,000 47,943
Parkway Holdings Ltd. (Healthcare).......................... 38,000 71,418
Robinson & Co., Ltd. (Consumer Discretionary)............... 400 1,087
Sembcorp Industries Ltd. (Industrial & Commercial)+......... 126,331 169,487
Shangri-La Hotel Ltd. (Information & Entertainment)......... 400 570
Singapore Airlines Ltd. alien shares (Information &
Entertainment)............................................ 117,000 795,213
Singapore Press Holdings Ltd. (Information &
Entertainment)............................................ 37,918 430,275
Singapore Technologies Engineering Ltd. (Industrial &
Commercial)............................................... 302,000 267,730
Singapore Telecommunications Ltd. (Information
Technology)............................................... 707,000 990,301
Straits Trading Co., Ltd. (Real Estate)..................... 20,000 16,548
United Industrial Corp., Ltd. (Multi-industry).............. 142,000 57,908
United Overseas Bank Ltd. alien shares (Finance)............ 74,000 441,726
United Overseas Land Ltd. (Real Estate)..................... 63,000 40,585
Venture Manufacturing Ltd. (Information Technology)......... 17,000 73,848
-------------
5,832,906
-------------
SPAIN -- 5.6%
Acerinox SA (Materials)..................................... 6,335 178,593
ACS Actividades de Construccion y Servicios SA (Industrial &
Commercial)............................................... 4,611 176,116
Argentina, Caja Postal y Banco Hipolecano de Espana SA
(Finance)................................................. 43,500 1,115,561
Autopistas Concesionaria Espana SA (Industrial &
Commercial)............................................... 22,073 332,713
Azucarera Ebro Agricolas SA (Consumer Staples)+............. 6,250 128,524
Banco Bilbao Vizcaya SA (Finance)........................... 173,950 2,606,182
Banco Central Hispanoamericano SA (Finance)................. 80,700 932,035
Banco de Santander SA (Finance)............................. 100,554 1,943,181
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SPAIN (continued)
Corporacion Financiera Alba SA (Multi-industry)............. 1,225 $ 172,324
Corporacion Mapfre SA (Finance)............................. 6,136 137,409
Dragados & Construcciones SA (Industrial & Commercial)...... 4,950 183,944
Empresa Nacional Celulos SA (Materials)..................... 75 1,270
Endesa SA (Utilities)....................................... 82,150 2,286,974
Fomento de Construcciones y Contratas SA (Consumer
Discretionary)............................................ 6,200 438,729
Gas Natural SDG, SA (Utilities)............................. 12,500 1,290,211
Iberdrola SA (Utilities).................................... 74,900 1,307,790
Mapfre Vida Seguros (Finance)............................... 26 993
Metrovacesa SA (Real Estate)................................ 3,824 99,154
Portland Valderrivas SA (Materials)......................... 25 986
Repsol SA (Energy).......................................... 27,000 1,465,555
Sociedad General de Aguas de Barcelona SA (Utilities)....... 4,082 267,740
Sol Melia SA (Information & Entertainment).................. 2,700 89,008
Tabacalera SA, Series A (Consumer Staples).................. 14,900 345,018
Telefonica SA (Utilities)................................... 86,845 3,973,522
Telefonica SA new shares (Utilities)........................ 1,736 79,429
TelePizza SA (Information & Entertainment)+................. 18,207 175,716
Union Electrica Fenosa SA (Utilities)....................... 24,800 427,945
Vallehermoso SA (Real Estate)............................... 54,289 691,186
Zardoya Otis SA (Industrial & Commercial)................... 2,125 63,119
-------------
20,910,927
-------------
SWEDEN -- 2.2%
ABB AB, Class A (Industrial & Commercial)+.................. 23,000 225,887
ABB AB, Class B (Industrial & Commercial)+.................. 9,600 93,667
AGA AB, Series B (Materials)................................ 5,650 75,074
Asticus AB (Real Estate)+................................... 36,480 346,568
Astra AB, Class A (Healthcare).............................. 45,566 985,695
Astra AB, Class B (Healthcare).............................. 11,000 235,836
Atlas Copco AB, Class A (Industrial & Commercial)........... 4,450 99,406
Atlas Copco AB, Class B (Industrial & Commercial)........... 2,400 53,150
Castellum AB (Real Estate).................................. 52,470 491,740
Diligentia AB (Real Estate)................................. 42,710 276,900
Electrolux AB (Consumer Discretionary)...................... 10,600 164,662
Ericsson L.M. Telecommunications Co., Class B (Information
Technology)............................................... 65,800 1,782,419
Fastighets AB Tornet (Real Estate).......................... 16,920 251,976
ForeningsSparbanken AB, Class A (Finance)................... 12,000 318,899
Hennes & Mauritz AB, Class B (Consumer Discretionary)....... 7,100 609,798
NetCom Systems AB, Class B+ (Information Technology)+....... 3,700 152,003
OM Gruppen AB (Finance)..................................... 2,500 33,379
Piren AB, Series B (Real Estate)............................ 13,420 84,421
Sandvik AB, Class A (Materials)............................. 6,800 124,401
Sandvik AB, Class B (Materials)............................. 2,800 51,224
Securitas AB, Series B (Industrial & Commercial)............ 9,244 144,784
Skandia Forsakrings AB (Finance)............................ 17,800 290,219
Skandinaviska Enskilda Bank, Series A (Finance)............. 20,700 243,160
Skanska AB, Series B (Industrial & Commercial).............. 4,300 124,209
SKF AB, Series B (Materials)+............................... 3,000 38,514
SSAB Svenskt Stal AB, Series A (Materials).................. 4,200 44,484
Svenska Cellulosa AB, Class B (Materials)................... 7,700 165,085
Svenska Handelsbank, Series A (Finance)+.................... 7,400 294,507
Trelleborg AB, Class B (Multi-industry)..................... 5,100 48,124
Volvo AB, Class A (Consumer Discretionary).................. 5,100 134,877
Volvo AB, Class B (Consumer Discretionary).................. 10,600 289,179
WM-Data AB, Class B (Information Technology)................ 2,500 123,888
-------------
8,398,135
-------------
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<S> <C> <C>
SWITZERLAND -- 6.2%
ABB AG (Information Technology)+............................ 390 $ 428,496
Adecco SA (Industrial & Commercial)......................... 755 357,949
Alusuisse-Lonza Group Ltd. (Multi-industry)................. 250 279,976
Credit Suisse Group (Finance)............................... 10,950 1,748,534
Georg Fischer AG, Series B (Industrial & Commercial)........ 135 42,781
Holderbank Financiere Glarus AG (Materials)................. 285 299,036
Nestle SA (Consumer Staples)+............................... 1,615 2,961,157
Novartis AG (Healthcare).................................... 2,625 4,926,164
Roche Holdings AG (Healthcare).............................. 68 1,217,975
Roche Holdings AG Gerusscheine NPV (Healthcare)............. 284 3,710,280
SAirGroup (Information & Entertainment)..................... 650 138,698
Schweizerische Rueckversicherungs-Gesellschaft (Consumer
Discretionary)+........................................... 600 1,491,839
SGS Societe Generale de Surveillance Holding SA, Series B
(Industrial & Commercial)................................. 70 61,775
Sulzer AG (Multi-industry).................................. 170 93,690
Swatch Group AG (Consumer Discretionary).................... 205 110,807
Swisscom AG (Utilities)+.................................... 2,750 1,202,749
UBS AG (Finance)+........................................... 8,323 2,699,256
Valora Holdings AG (Industrial & Commercial)................ 265 63,661
Zurich Allied AG (Finance)+................................. 1,945 1,438,857
-------------
23,273,680
-------------
THAILAND -- 0.0%
Advance Agro PCL alien shares (Materials)(1)................ 660 358
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 PLC (Real Estate)(1)........................... 22,500 0
-------------
358
-------------
UNITED KINGDOM -- 22.8%
Abbey National PLC (Finance)................................ 65,318 1,287,777
Albert Fisher Group PLC (Consumer Staples).................. 55,153 4,538
Alldays PLC (Consumer Discretionary)........................ 2,933 3,499
Allders PLC (Consumer Discretionary)........................ 3,826 6,863
Allied Zurich PLC (Finance)+................................ 73,116 1,128,668
AMEC PLC (Industrial & Commercial).......................... 11,188 30,104
Anglian Water PLC (Utilities)............................... 46,941 590,969
Associated British Foods PLC (Consumer Staples)............. 42,997 377,859
Associated British Ports Holdings PLC (Industrial &
Commercial)............................................... 27,950 126,493
BAA PLC (Industrial & Commercial)........................... 54,137 649,490
Barclays PLC (Finance)...................................... 69,923 1,570,737
Barratt Developments PLC (Industrial & Commercial).......... 15,998 55,157
Bass PLC (Consumer Staples)+................................ 38,518 519,791
BBA Group PLC (Multi-industry).............................. 1,916 11,982
Beazer Group PLC (Industrial & Commercial).................. 22,119 52,418
Berisford PLC (Multi-industry).............................. 29,455 83,133
Berkeley Group PLC (Industrial & Commercial)................ 11,553 84,227
BG PLC (Utilities).......................................... 178,701 1,108,713
BICC Group PLC (Industrial & Commercial).................... 11,359 10,936
Blue Circle Industries PLC (Materials)...................... 88,257 438,639
BOC Group PLC (Materials)................................... 24,036 341,764
Boots Co. PLC (Consumer Discretionary)...................... 42,620 619,334
BP Amoco PLC (Energy)....................................... 437,113 5,956,276
BPB Industries PLC (Materials).............................. 59,098 203,268
British Aerospace PLC (Industrial & Commercial)............. 89,422 679,152
British Airways PLC (Information & Entertainment)........... 54,991 320,365
British America Tobacco PLC (Consumer Staples)+............. 72,260 748,591
</TABLE>
- ---------------------
96
<PAGE> 98
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (continued)
British Land Co. PLC (Real Estate).......................... 87,434 $ 629,879
British Sky Broadcasting Group PLC (Information &
Entertainment)............................................ 79,602 609,155
British Steel PLC (Materials)............................... 124,001 263,616
British Telecommunications PLC (Information Technology)..... 283,226 4,348,761
BTR Ltd. PLC (Multi-industry)............................... 317,987 570,409
Burford Holdings PLC (Real Estate).......................... 149,700 209,407
Burmah Castrol PLC (Energy)................................. 48,133 636,869
Cable & Wireless PLC (Information Technology)............... 108,485 1,572,883
Cadbury Schweppes PLC (Consumer Staples).................... 46,122 736,259
Capital Corp. PLC (Information & Entertainment)............. 7,320 6,686
Capital Shopping Centers PLC (Consumer Discretionary)....... 100,160 543,950
Caradon PLC (Materials)..................................... 62,293 136,346
Carpetright PLC (Consumer Discretionary).................... 19,240 72,192
Centrica PLC (Utilities)+................................... 210,179 442,741
CGU PLC (Finance)........................................... 60,529 879,579
Cobham PLC (Industrial & Commercial)........................ 5,557 78,191
Compass Group PLC (Industrial & Commercial)................. 20,229 264,663
Delta PLC (Multi-industry).................................. 3,744 7,086
Diageo PLC (Consumer Staples)............................... 168,056 1,882,058
Dialog Corp. PLC (Information Technology)+.................. 6,944 8,742
Electrocomponents PLC (Information Technology).............. 28,815 191,106
EMAP PLC (Information & Entertainment)...................... 9,254 191,889
Emi Group PLC (Information & Entertainment)................. 103,543 664,563
Enterprise Oil PLC (Energy)................................. 44,511 167,747
FirstGroup PLC (Industrial & Commercial).................... 43,110 283,075
FKI PLC (Multi-industry).................................... 35,500 83,252
General Electric Co. PLC (Information Technology)........... 129,952 1,209,390
GKN PLC (Consumer Discretionary)............................ 47,684 588,552
Glaxo Wellcome PLC (Healthcare)............................. 162,616 5,478,125
Granada Group PLC (Information & Entertainment)............. 45,327 809,725
Grantchester Holdings PLC (Real Estate)..................... 215,190 481,628
Great Universal Stores PLC (Consumer Discretionary)......... 53,583 686,494
Greycoat PLC (Real Estate).................................. 8,495 25,164
Guardian Royal Exchange PLC (Finance)....................... 50,144 305,331
Halifax PLC (Finance)....................................... 119,059 1,416,613
Hammerson PLC (Real Estate)................................. 41,860 246,278
Hanson PLC (Multi-industry)................................. 42,849 279,951
House of Fraser PLC (Consumer Discretionary)................ 21,504 29,373
HSBC Holdings PLC (Finance)................................. 83,471 2,116,845
HSBC Holdings PLC (75P) (Finance)........................... 40,688 1,112,879
Hyder PLC (Utilities)....................................... 13,296 179,864
IMI PLC (Multi-industry).................................... 41,564 153,761
Imperial Chemical Industries PLC (Materials)................ 33,272 299,514
Jarvis PLC (Industrial & Commercial)........................ 12,566 125,113
JBA Holdings PLC (Information Technology)................... 2,260 3,533
Johnson Matthey PLC (Multi-industry)........................ 49,203 340,088
Kingfisher PLC (Consumer Discretionary)..................... 60,233 615,074
Kwik-Fit Holdings PLC (Consumer Discretionary).............. 3,911 26,453
Ladbroke Group PLC (Information & Entertainment)............ 80,717 300,874
Laird Group PLC (Multi-industry)............................ 9,983 32,447
Land Securities PLC (Real Estate)........................... 29,384 354,217
LASMO PLC (Energy).......................................... 117,508 204,986
Legal & General Group Ltd. PLC (Finance).................... 56,533 819,651
Lex Service PLC (Consumer Discretionary).................... 16,132 97,433
LIMIT PLC (Finance)......................................... 15,306 41,310
Lloyds TSB Group PLC (Finance).............................. 255,670 3,332,389
London Clubs International PLC (Information &
Entertainment)............................................ 35,948 93,472
London Forfaiting Co. PLC (Finance)......................... 11,118 9,011
</TABLE>
---------------------
97
<PAGE> 99
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (continued)
Lonrho PLC (Multi-industry)................................. 31,034 $ 173,647
Low & Bonar PLC (Materials)................................. 2,967 9,522
LucasVarity PLC (Consumer Discretionary).................... 197,364 941,926
Manchester United PLC (Information & Entertainment)......... 2,867 10,427
Marks & Spencer PLC (Consumer Discretionary)................ 137,319 815,809
Marley PLC (Materials)...................................... 67,334 140,731
Mayflower Corp. PLC (Consumer Discretionary)................ 375 836
McKechnie PLC (Multi-industry).............................. 3,439 22,129
Meggitt PLC (Multi-industry)................................ 8,797 21,571
MEPC PLC (Real Estate)...................................... 21,864 141,768
Mirror Group PLC (Information & Entertainment).............. 36,930 128,237
Misys PLC (Information Technology).......................... 88,831 929,033
National Grid Group PLC (Utilities)......................... 62,733 510,004
National Power PLC (Utilities).............................. 57,832 454,932
Next PLC (Multi-industry)................................... 53,752 574,988
NFC PLC (Industrial & Commercial)........................... 70,218 161,203
Ocean Group PLC (Industrial & Commercial)................... 1,411 17,462
Parity PLC (Information Technology)......................... 15,885 154,891
Pearson PLC (Information & Entertainment)................... 28,005 620,803
Peninsular & Oriental Steam PLC (Industrial & Commercial)... 30,678 335,232
Pennon Group PLC (Industrial & Commercial).................. 18,684 329,007
Pilkington PLC (Materials).................................. 184,666 185,382
Powerscreen International PLC (Industrial & Commercial)..... 3,129 6,488
Provident Financial PLC (Finance)........................... 13,005 196,473
Prudential Corp. PLC (Finance).............................. 84,143 1,299,580
Racal Electronic PLC (Information Technology)............... 17,560 112,704
Railtrack Group PLC (Industrial & Commercial)+.............. 22,901 582,283
Rank Group PLC (Information & Entertainment)................ 93,056 309,348
Reed International PLC (Information & Entertainment)........ 53,136 495,819
Rentokil Initial PLC (Industrial & Commercial).............. 132,775 981,100
Reuters Group PLC (Information & Entertainment)............. 67,572 1,028,630
Rexam PLC (Materials)....................................... 3,530 10,863
Rio Tinto PLC (Materials)................................... 51,924 622,940
RMC Group PLC (Materials)................................... 30,354 335,438
Rolls-Royce PLC (Industrial & Commercial)................... 150,892 615,841
Royal & Sun Alliance Insurance Group PLC (Finance).......... 75,714 577,221
Rugby Group PLC (Consumer Discretionary).................... 19,092 30,163
Safeway PLC (Consumer Discretionary)........................ 53,149 240,535
Sainsbury (J.) PLC (Consumer Discretionary)+................ 88,503 626,293
Schroder PLC (Finance)...................................... 13,672 233,550
Scotia Holdings PLC (Healthcare)+........................... 8,412 7,337
Scottish & Newcastle PLC (Consumer Staples)................. 32,749 382,655
Scottish Hydro-Electric PLC (Utilities)..................... 38,583 368,912
Scottish Power PLC (Utilities).............................. 50,410 535,091
Sears PLC (Consumer Discretionary).......................... 54,509 319,352
Siebe PLC (Multi-industry).................................. 119,854 406,322
Skillsgroup PLC (Information Technology).................... 2,557 9,510
SmithKline Beecham PLC (Healthcare)......................... 248,671 3,351,659
Smiths Industries PLC (Multi-industry)...................... 29,336 432,573
Stagecoach Holdings PLC (Industrial & Commercial)........... 146,536 623,987
Tate & Lyle PLC (Consumer Staples).......................... 19,168 124,602
Tesco PLC (Consumer Discretionary).......................... 308,852 953,021
Thames Water PLC (Industrial & Commercial).................. 15,557 272,663
TI Group PLC (Multi-industry)............................... 29,465 170,202
Torotrak PLC (Consumer Discretionary)+...................... 2,495 2,874
Unilever NV PLC (Consumer Staples).......................... 156,696 1,553,695
United Utilities PLC (Utilities)............................ 24,561 317,297
Vickers PLC (Multi-industry)................................ 4,178 9,832
</TABLE>
- ---------------------
98
<PAGE> 100
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (continued)
Vodafone Group PLC (Information Technology)................. 128,454 $ 2,505,052
Wates City of London Properties PLC (Real Estate)........... 295,610 335,675
Wickes PLC (Consumer Discretionary)......................... 1,754 6,610
William Baird PLC (Consumer Discretionary).................. 19,274 25,375
Williams PLC (Multi-industry)............................... 39,876 206,387
Wolseley PLC (Materials).................................... 40,214 261,412
WPP Group PLC (Industrial & Commercial)..................... 50,471 380,416
Yorkshire Water PLC (Utilities)............................. 32,249 264,300
Zeneca Group PLC (Healthcare)............................... 43,809 2,011,492
-------------
85,130,497
-------------
TOTAL COMMON STOCK (cost $265,066,155)...................... 319,594,013
-------------
PREFERRED STOCK -- 0.4%
---------------------------------------------------------------------------------------------
AUSTRALIA -- 0.2%
News Corp., Ltd. 5.00% (Information & Entertainment)........ 83,450 568,094
-------------
AUSTRIA -- 0.0%
Bau Holdings AG (Consumer Discretionary).................... 2 70
-------------
GERMANY -- 0.2%
SAP AG 0.37% non-voting (Information Technology)............ 1,477 582,606
Volkswagen AG (Consumer Discretionary)...................... 3,430 163,760
-------------
746,366
-------------
ITALY -- 0.0%
Fiat SpA 2.49% (Consumer Discretionary)..................... 72,850 120,491
-------------
TOTAL PREFERRED STOCK (cost $1,073,887)..................... 1,435,021
-------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 0.0% AMOUNT
---------------------------------------------------------------------------------------------
<S> <C> <C>
FRANCE -- 0.0%
Establissements Economiques du Casino Guichard-Perrachon SA
4.50% 2001 (Consumer Discretionary)....................... FRF 43,400 16,960
Sodexho Alliance SA 6.00% 2004 (Real Estate)................ FRF 30,000 5,649
-------------
22,609
-------------
ITALY -- 0.0%
La Rinascente Per L'Esercizio Grandi Magazzini SpA 4.50%
2000 (Consumer Discretionary)............................. ITL 16,000,000 9,459
-------------
PORTUGAL -- 0.0%
Jeronimo Martins SGPS SA zero coupon 2004 (Consumer
Staples).................................................. PTE 1,746,000 11,840
-------------
TOTAL BONDS & NOTES (cost $38,979).......................... 43,908
-------------
</TABLE>
---------------------
99
<PAGE> 101
<TABLE>
<CAPTION>
WARRANTS -- 0.0%+ WARRANTS VALUE
---------------------------------------------------------------------------------------------
<S> <C> <C>
HONG KONG -- 0.0%
Hong Kong & China Gas Co., Ltd. 9/30/99 (Utilities)......... 11,700 $ 483
Hysan Development Co., Ltd. 4/30/99 (Real Estate)........... 6,500 33
-------------
TOTAL WARRANTS (cost $0).................................... 516
-------------
TOTAL INVESTMENT SECURITIES (cost $266,179,021)............. 321,073,458
-------------
PRINCIPAL
REPURCHASE AGREEMENT -- 12.6% AMOUNT
---------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 12.6%
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 $46,983,656 and collateralized
by $33,075,000 of U.S. Treasury Bonds, bearing interest at
8.88%, due 08/15/17 and having an approximate aggregate
value of $47,910,990 (cost $46,968,000)@.................. $ 46,968,000 46,968,000
-------------
TOTAL INVESTMENTS --
(cost $313,147,021) 98.5% 368,041,458
Other assets less liabilities -- 1.5 5,743,065
------ -------------
NET ASSETS -- 100.0% $373,784,523
====== =============
</TABLE>
-----------------------------
+ Non-income producing securities
(1) Fair valued security; see note 2
@ 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 JANUARY 31, APPRECIATION/
CONTRACTS DESCRIPTION DATE TRADE DATE 1999 (DEPRECIATION)
-----------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
32 Short IBEX 32 Plus Index................... February 1999 $3,602,194 $3,587,177 $(15,017)
21 Long NIKKEI 225 Index..................... March 1999 2,687,112 2,641,963 (45,149)
141 Long TOPIX TSE Index...................... March 1999 9,988,475 10,230,907 242,432
100 Long CAC 40 Index......................... March 1999 4,869,748 4,847,168 (22,580)
14 Short FTSE 100 Index....................... March 1999 1,404,203 1,363,853 (40,350)
---------
Net Unrealized Appreciation................................................... $119,336
=========
</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>
SGD 2,107,860 USD 1,290,000 02/03/99 $ 40,502
*FRF 28,828,800 USD 5,175,913 02/04/99 178,620
JPY 348,517,000 USD 3,079,860 02/04/99 73,426
*JPY 504,296,910 USD 4,381,000 02/08/99 28,717
SGD 2,011,000 USD 1,233,742 03/08/99 41,150
ESP 493,084,228 USD 3,488,392 02/12/99 117,489
ESP 76,923,000 USD 540,000 02/12/99 14,126
*GBP 3,761,000 USD 6,233,105 02/12/99 45,785
GBP 2,114,296 USD 3,548,000 02/12/99 69,716
*SGD 2,011,000 USD 1,235,258 04/07/99 39,894
------------
649,425
------------
</TABLE>
- ---------------------
100
<PAGE> 102
<TABLE>
<CAPTION>
OPEN FORWARD FOREIGN CURRENCY CONTRACTS
-------------------------------------------------------------------
CONTRACT IN DELIVERY GROSS UNREALIZED
TO DELIVER EXCHANGE FOR DATE DEPRECIATION
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
*USD 4,296,813 FRF 24,500,000 02/04/99 $ (49,891)
*JPY 502,276,279 USD 4,153,000 02/04/99 (179,818)
USD 5,618,130 JPY 643,304,027 02/04/99 (68,756)
USD 1,797,789 JPY 207,489,252 02/04/99 (7,911)
*JPY 508,152,190 USD 4,381,000 02/08/99 (4,556)
*USD 8,774,636 JPY 1,012,449,100 02/08/99 (36,797)
*USD 3,375,972 GBP 2,039,000 02/12/99 (21,559)
*USD 2,873,846 GBP 1,722,000 02/12/99 (40,938)
JPY 308,064,900 USD 2,578,380 02/26/99 (85,951)
USD 2,675,949 JPY 308,064,900 02/26/99 (11,618)
USD 1,287,715 SGD 2,107,860 03/03/99 (38,217)
USD 1,229,067 SGD 2,011,000 03/08/99 (36,474)
JPY 499,971,000 USD 4,237,294 03/10/99 (93,846)
USD 2,834,626 JPY 325,793,792 03/10/99 (12,346)
USD 3,358,000 JPY 387,043,080 03/10/99 (5,130)
USD 5,500,000 JPY 622,765,000 03/17/99 (99,813)
USD 5,690,087 JPY 644,573,000 03/17/99 (100,796)
USD 3,507,249 JPY 401,580,000 03/17/99 (25,025)
USD 5,333,075 EUR 4,577,354 03/31/99 (113,333)
*USD 1,231,325 SGD 2,011,000 04/07/99 (35,961)
------------
(1,068,736)
------------
Net Unrealized Depreciation............. $ (419,311)
============
</TABLE>
----------------------------
* Represents fully offsetting 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 GBP -- Pound Sterling PTE -- Portuguese Escudo
ESP -- Spanish Peseta ITL -- Italian Lira SGD -- Singapore Dollar
EUR -- Euro Dollar JPY -- Japanese Yen USD -- United States Dollar
FRF -- French Franc
</TABLE>
See Notes to Financial Statements.
---------------------
101
<PAGE> 103
- ---------------------
SUNAMERICA SERIES TRUST
REAL ESTATE PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK -- 92.0% SHARES VALUE
---------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL & COMMERCIAL -- 1.1%
Multi-Industry -- 1.1%
The St. Joe Co. ............................................ 28,900 $ 643,025
------------
INFORMATION & ENTERTAINMENT -- 5.0%
Leisure & Tourism -- 5.0%
Premier Parks, Inc.+........................................ 63,400 2,008,988
Vail Resorts, Inc.+......................................... 43,700 928,625
------------
2,937,613
------------
INFORMATION TECHNOLOGY -- 1.7%
Communication Equipment -- 1.7%
OmniAmerica, Inc.+.......................................... 35,400 991,200
------------
REAL ESTATE -- 84.2%
Real Estate Companies -- 9.4%
Boardwalk Equities, Inc.+................................... 214,000 2,058,375
Catellus Development Corp.+................................. 130,900 2,012,587
Crescent Operating, Inc.+................................... 20,680 102,108
Reckson Services Industries, Inc. .......................... 23,808 95,232
Security Capital Group, Inc., Class B+...................... 49,800 628,725
TrizecHahn Corp. ........................................... 28,000 575,750
Real Estate Investment Trusts -- 74.8%
Alexandria Real Estate Equities, Inc. ...................... 83,100 2,373,544
AMB Property Corp........................................... 41,400 915,975
Apartment Investment & Management Co., Class A.............. 43,975 1,643,566
Archstone Communities Trust................................. 93,100 1,803,812
Avalonbay Communities, Inc. ................................ 46,767 1,499,467
Boston Properties, Inc. .................................... 71,500 2,323,750
Camden Property Trust....................................... 34,859 867,118
CenterPoint Properties Corp. ............................... 79,900 2,606,737
Crescent Real Estate Equities Co. .......................... 54,400 1,152,600
Equity Residential Properties Trust......................... 4,400 179,025
Essex Property Trust, Inc. ................................. 33,300 953,213
Gables Residential Trust.................................... 71,800 1,646,912
General Growth Properties, Inc. ............................ 6,400 221,600
Glenborough Realty Trust, Inc. ............................. 27,800 488,238
Golf Trust of America, Inc. ................................ 46,100 1,172,669
Home Properties of New York, Inc. .......................... 108,700 2,819,406
JDN Realty Corp. ........................................... 105,050 2,232,312
Mack-Cali Realty Corp. ..................................... 51,600 1,541,550
Meditrust Co. .............................................. 106,200 1,666,012
Parkway Properties, Inc. ................................... 42,900 1,359,394
Patriot American Hospitality, Inc. ......................... 2,348 12,620
Post Properties, Inc. ...................................... 14,300 532,675
Public Storage, Inc. ....................................... 61,600 1,566,950
Reckson Associates Realty Corp. ............................ 60,700 1,335,400
SL Green Realty Corp. ...................................... 40,000 810,000
Spieker Properties Incorporated............................. 58,500 1,989,000
Starwood Hotels and Resorts, Class B........................ 50,600 1,265,000
</TABLE>
- ---------------------
102
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
---------------------------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE (continued)
Real Estate Investment Trusts (continued)
Storage USA, Inc. .......................................... 50,300 $ 1,565,587
The Rouse Co. .............................................. 67,100 1,585,237
U. S. Restaurant Properties, Inc. .......................... 50,550 1,093,144
Vornado Realty Trust........................................ 72,400 2,556,625
------------
49,251,915
------------
TOTAL COMMON STOCK (cost $61,200,220)....................... 53,823,753
------------
PREFERRED STOCK -- 5.8%
---------------------------------------------------------------------------------------
REAL ESTATE -- 5.8%
Real Estate Investment Trusts -- 5.8%
Camden Property Trust Convertible Series A $2.25............ 700 16,888
Equity Residential Properties Trust Convertible Series E
7.00%..................................................... 29,600 706,700
General Growth Properties, Inc. Convertible 7.75%........... 75,500 1,830,875
SL Green Realty Corp. Convertible 8.00%..................... 23,200 510,400
The Rouse Co. Convertible Series B $3.00.................... 5,400 221,400
Vornado Realty Trust Convertible Series A 6.50%............. 1,700 88,400
------------
3,374,663
------------
TOTAL PREFERRED STOCK (cost $3,687,923)..................... 3,374,663
------------
PRINCIPAL
BONDS & NOTES -- 0.4% AMOUNT
---------------------------------------------------------------------------------------
REAL ESTATE -- 0.4%
Real Estate Investment Trusts -- 0.4%
The Rouse Co. 5.75% 2002 (cost $258,565).................... $ 244,000 244,475
------------
TOTAL INVESTMENT SECURITIES (cost $65,146,708).............. 57,442,891
------------
REPURCHASE AGREEMENT -- 3.1%
---------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 3.1%
Agreement with State Street Bank & Trust Co., bearing
interest at 4.70% dated 01/29/99 to be repurchased
02/01/99 in the amount of $1,835,719 and collateralized by
$1,850,000 of Federal National Mortgage Association,
bearing interest at 5.75% due 3/10/00 and having an
approximate aggregate value of $1,893,952 (cost
$1,835,000)............................................... 1,835,000 1,835,000
------------
TOTAL INVESTMENTS --
(cost $66,981,708) 101.3% 59,277,891
Liabilities in excess of other assets -- (1.3) (773,575)
------ ------------
NET ASSETS -- 100.0% $58,504,316
====== ============
</TABLE>
-----------------------------
+ Non-income producing securities.
See Notes to Financial Statements.
---------------------
103
<PAGE> 105
- ---------------------
SUNAMERICA SERIES TRUST
AGGRESSIVE GROWTH
PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK -- 87.3% SHARES VALUE
<S> <C> <C>
-----------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
CONSUMER DISCRETIONARY -- 9.1%
Apparel & Textiles -- 2.0%
Gerber Childrenswear, Inc.+................................. 29,600 $ 233,100
Gucci Group NV.............................................. 34,000 2,339,625
Mohawk Industries, Inc.+.................................... 25,600 985,600
Automotive -- 1.3%
Action Performance Cos., Inc.+.............................. 49,100 2,356,800
Housing -- 1.1%
D.R. Horton, Inc............................................ 42,000 887,250
Home Depot, Inc............................................. 20,000 1,207,500
Retail -- 4.7%
Abercrombie & Fitch Co.+.................................... 42,300 3,235,950
Beyond Common Corp.......................................... 33,600 936,600
Gap, Inc.................................................... 36,450 2,339,634
Krause's Furniture, Inc.+................................... 72,500 108,750
Movado Group, Inc........................................... 15,700 399,369
Restoration Hardware, Inc.+................................. 8,100 166,556
Sothebys Holdings Inc....................................... 40,900 1,418,719
-------------
16,615,453
-------------
CONSUMER STAPLES -- 0.9%
Household Products -- 0.9%
Steiner Leisure Ltd.+....................................... 49,100 1,669,400
-------------
ENERGY -- 3.8%
Energy Services -- 2.8%
BJ Services Co.+............................................ 86,700 1,278,825
Diamond Offshore Drilling, Inc.............................. 48,800 1,122,400
Friede Goldman International, Inc.+......................... 64,600 646,000
Transocean Offshore, Inc.................................... 39,300 1,004,606
Weatherford International, Inc.+............................ 54,800 965,850
Energy Sources -- 1.0%
Smith International, Inc.+.................................. 73,100 1,850,344
-------------
6,868,025
-------------
FINANCE -- 4.0%
Banks -- 0.6%
Hamilton Bancorp, Inc.+..................................... 29,400 768,075
Hibernia Corp. Class A...................................... 24,000 402,000
Financial Services -- 2.5%
HealthCare Financial Partners, Inc.+........................ 25,000 770,313
Morgan Stanley, Dean Witter & Co............................ 18,000 1,562,625
Raymond James Financial, Inc................................ 20,800 396,500
The Kroll-O'Gara Co.+....................................... 47,400 1,898,962
</TABLE>
- ---------------------
104
<PAGE> 106
<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE (continued)
Insurance -- 0.9%
Annuity & Life Re Holdings, Ltd.+........................... 36,000 $ 816,750
Reliance Group Holdings, Inc................................ 67,000 737,000
-------------
7,352,225
-------------
HEALTHCARE -- 5.0%
Drugs -- 2.5%
Alkermes, Inc.+............................................. 72,000 2,241,000
Sepracor, Inc.+............................................. 19,500 2,237,625
Health Services -- 0.1%
U.S. Vision, Inc.+.......................................... 30,000 213,750
Medical Products -- 2.4%
Genzyme Corp.+.............................................. 39,600 2,158,200
MedImmune, Inc.+............................................ 41,800 2,069,100
Nanogen, Inc.+.............................................. 27,000 142,594
-------------
9,062,269
-------------
INDUSTRIAL & COMMERCIAL -- 3.9%
Business Services -- 3.5%
Allied Waste Industries, Inc.+.............................. 70,600 1,438,475
AnswerThink Consulting Group, Inc.+......................... 52,200 1,474,650
Caliber Learning Network Inc.+.............................. 11,200 45,150
ITT Educational Services, Inc.+............................. 18,900 726,469
Paychex, Inc................................................ 35,000 1,704,062
Sylvan Learning Systems, Inc.+.............................. 32,000 1,006,000
Transportation -- 0.4%
Offshore Logistics, Inc.+................................... 80,700 786,825
-------------
7,181,631
-------------
INFORMATION & ENTERTAINMENT -- 17.6%
Broadcasting & Media -- 12.6%
Cablevision Systems Corp., Class A+......................... 33,200 2,236,850
Cinar Films, Inc., Class B+................................. 49,000 980,000
Clear Channel Communications, Inc.+......................... 29,000 1,794,375
CMG Information Services, Inc.+............................. 12,300 1,500,600
Comcast Corp., Class A+..................................... 25,600 1,740,400
DoubleClick, Inc.+.......................................... 15,300 1,472,625
EchoStar Communications Corp., Class A+..................... 12,000 657,000
Entercom Communications Corp. .............................. 20,000 615,000
HA-LO Industries, Inc.+..................................... 48,600 1,050,975
Infinity Broadcasting Corp., Class A........................ 15,700 434,694
Jacor Communications, Inc.+................................. 18,500 1,288,062
META Group, Inc. +.......................................... 17,000 429,250
NetGravity Inc.+............................................ 50,000 1,131,250
RCM Technologies, Inc.+..................................... 76,100 1,483,950
Snyder Communications, Inc.+................................ 32,700 1,308,000
Ticketmaster Online Citysearch.............................. 29,100 1,826,025
USA Networks, Inc.+......................................... 27,000 972,000
Ziff-Davis, Inc.+........................................... 117,000 2,120,625
Entertainment Products -- 1.3%
Oakley, Inc.+............................................... 109,200 880,425
Sunglass Hut International, Inc.+........................... 156,300 1,462,870
Leisure & Tourism -- 3.7%
Carnival Corp., Class A..................................... 37,000 1,815,313
Outback Steakhouse, Inc.+................................... 48,700 1,777,550
</TABLE>
---------------------
105
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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 $ 1,295,850
Travel Services International, Inc.+........................ 59,000 1,784,750
-------------
32,058,439
-------------
INFORMATION TECHNOLOGY -- 38.6%
Communication Equipment -- 1.2%
Verisign, Inc............................................... 23,600 2,247,900
Computers & Business Equipment -- 6.7%
Compaq Computer Corp........................................ 48,400 2,305,050
Dell Computer Corp.+........................................ 13,300 1,330,000
FORE Systems, Inc.+......................................... 80,100 1,346,681
Network Appliance, Inc.+.................................... 66,400 3,519,200
Quantum Corp.+.............................................. 64,000 1,532,000
Sun Microsystems, Inc.+..................................... 19,200 2,145,600
Software -- 23.8%
America Online, Inc.+....................................... 32,400 5,692,275
AVT Corp.+.................................................. 17,900 487,775
Brightstar Information Technology Group, Inc.+.............. 16,000 156,000
BroadVision, Inc.+.......................................... 54,500 2,282,187
Cambridge Technology Partners, Inc.+........................ 70,000 2,073,750
Compuware Corp.+............................................ 36,500 2,418,125
Concur Technologies, Inc. .................................. 20,000 630,000
Covad Communications Group, Inc. ........................... 8,000 422,000
DSET Corp.+................................................. 86,600 1,580,450
Entrust Technologies, Inc.+................................. 53,800 1,896,450
Excite Inc.+................................................ 18,700 2,215,950
Fundtech Ltd+............................................... 16,000 352,000
Infoseek Corp.+............................................. 17,200 1,345,900
J.D. Edwards & Co.+......................................... 38,500 782,031
Keane, Inc.+................................................ 25,000 806,250
Legato Systems, Inc.+....................................... 42,000 2,535,750
Lycos, Inc.+................................................ 9,800 1,342,600
Macromedia, Inc.+........................................... 15,900 557,494
Micromuse, Inc. ............................................ 24,000 733,500
Microsoft Corp.+............................................ 26,000 4,550,000
Real Networks, Inc. ........................................ 47,600 3,370,675
Saville Systems PLC ADR+.................................... 49,500 1,082,812
Spyglass, Inc.+............................................. 48,200 605,513
Usweb Corp. ................................................ 57,000 1,738,500
Yahoo!, Inc.+............................................... 10,400 3,684,200
Telecommunications -- 6.9%
At Home Corp., Series A+.................................... 12,000 1,500,000
Frontier Corp. ............................................. 48,200 1,741,225
GST Telecommunications, Inc.+............................... 243,200 2,052,000
ICG Communications, Inc.+................................... 54,600 1,027,163
Intermedia Communications, Inc.+............................ 64,300 892,163
Network Solutions, Inc+..................................... 4,000 964,000
Primus Telecommunications Group, Inc.+...................... 23,500 343,688
Qwest Communications International, Inc.+................... 31,592 1,893,545
STARTEC Global Communications Corp.+........................ 10,000 84,375
Tele-Communications, Inc., Class A +........................ 30,600 2,098,012
-------------
70,364,789
-------------
</TABLE>
- ---------------------
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 4.4%
Electric Utilities -- 3.3%
DTE Energy Co............................................... 35,700 $ 1,445,850
Niagara Mohawk Power Corp.+................................. 160,500 2,457,656
P P & L Resources, Inc...................................... 35,700 952,744
Texas Utilities Co.......................................... 26,800 1,177,525
Telephone -- 1.1%
Century Telephone Enterprises, Inc.......................... 29,400 1,999,200
-------------
8,032,975
-------------
TOTAL COMMON STOCK (cost $121,556,510)...................... 159,205,206
-------------
<CAPTION>
OPTIONS -- 0.0%+ CONTRACTS
-----------------------------------------------------------------------------------------
<S> <C> <C>
CALL OPTIONS -- 0.0%
Philadelphia Utility Index expires 3/99 (cost $138,288)..... 96 11,400
-------------
TOTAL INVESTMENT SECURITIES (cost $121,694,798)............. 159,216,606
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 13.0% AMOUNT
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Joint Repurchase Agreement Account (Note 3) (cost $23,693,000).......... $23,693,000 23,693,000
-------------
TOTAL INVESTMENTS --
(cost $145,387,798) 100.3% 182,909,606
Liabilities in excess of other
assets -- (0.3) (596,445)
----- ------------
NET ASSETS -- 100.0% $ 182,313,161
===== ============
</TABLE>
-----------------------------
+ Non-income producing securities.
ADR -- American Depository Receipt
See Notes to Financial Statements.
---------------------
107
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- ---------------------
SUNAMERICA SERIES TRUST
EMERGING MARKETS
PORTFOLIO INVESTMENT PORTFOLIO -- JANUARY 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK -- 87.5% SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C>
ARGENTINA -- 5.0%
Banco Rio de La Plata SA ADR+ (Finance)..................... 14,800 $ 126,725
Perez Cos. SA (Multi-industry).............................. 58,100 236,848
Telefonica de Argentina SA ADR (Utilities).................. 13,200 325,875
Transportadora De Gas Del Sur SA ADR (Utilities)............ 33,800 323,212
YPF Sociedad Anonima ADR (Energy)........................... 19,200 612,000
------------
1,624,660
------------
BRAZIL -- 5.0%
Aracruz Celulose SA ADR (Materials)......................... 44,361 632,144
Companhia Cervejaria Brahma ADR (Consumer Staples).......... 21,500 151,844
Companhia Energetica de Minas Gerais ADR (Materials)........ 25,388 314,265
Companhia Forca e Luz Cataguazes (Utilities)................ 2,500,000 123,457
Companhia Vale do Rio Doce ADR (Materials).................. 13,280 199,908
Petroleo Brasileiro SA ADR (Energy)......................... 12,800 85,125
Souza Cruz Cia (Consumer Staples)........................... 24,400 138,568
Telesp Participacpoes SA (Information Technology)........... 500 8,781
------------
1,654,092
------------
CHILE -- 3.3%
Banco Santander Chile ADR (Finance)......................... 12,800 179,200
Chilectra SA ADR (Utilities)................................ 7,500 147,194
Compania de Telecomunicaciones de Chile SA ADR
(Utilities)............................................... 17,100 348,412
Enersis SA ADR (Utilities)(1)............................... 9,200 249,550
Madeco SA (Materials)....................................... 19,500 143,813
------------
1,068,169
------------
CHINA -- 0.4%
Beijing Datang Power Generation Company Ltd. (Utilities).... 210,000 54,202
Guangdong Kelon Electric Holdings (Industrial &
Commercial)............................................... 97,000 70,101
------------
124,303
------------
CZECH REPUBLIC -- 1.9%
Ceske Radiokomunikace GDR (Information &
Entertainment)*(1)........................................ 16,200 605,271
------------
EGYPT -- 0.8%
EFG Hermes Holding S A E (Finance)*(1)...................... 14,300 200,200
EFG Hermes Holding S A E (Finance)(1)....................... 4,400 61,600
------------
261,800
------------
GREECE -- 8.4%
Commercial Bank of Greece (Finance)......................... 6,126 659,842
Hellenic Telecommunications ADR (Information Technology)+... 1,944 29,646
National Bank Of Greece (Finance)........................... 3,300 912,006
OTE Greek Telecommunications (Information Technology)....... 13,000 391,748
Panafon Hellenic Telecom SA (Information Technology)........ 12,000 410,977
STET Hellas Telecommunications SA ADR (Information
Technology)............................................... 7,400 348,725
------------
2,752,944
------------
HONG KONG -- 2.3%
Asia Satellite Telecom Holdings Ltd. (Information
Technology)............................................... 87,000 145,397
</TABLE>
- ---------------------
108
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
HONG KONG (continued)
Cheung Kong (Holdings) Ltd. (Real Estate)................... 11,000 $ 76,302
China Telecom (Hong Kong) Ltd.+ (Information Technology).... 95,000 169,801
Dao Heng Bank Group Ltd. (Finance).......................... 46,000 113,385
Hutchison Whampoa Ltd. (Multi-Industry)+.................... 13,000 92,272
Johnson Electronic Holdings Ltd. (Information Technology)... 35,000 85,594
Legend Holdings (Information Technology).................... 186,000 73,211
------------
755,962
------------
HUNGARY -- 3.1%
Mol Magyar Olajes Gazipall Rt GDR (Utilities)............... 1,400 38,920
Mol Magyar Olajes Gazipall Rt (Utilities)................... 18,700 517,502
Matar Rt ADR (Information Technology)....................... 6,200 192,587
Pick Szeged Rt (Consumer Staples)*(1)....................... 31,500 254,196
------------
1,003,205
------------
INDIA -- 6.9%
Bajaj Auto Ltd. (Consumer Discretionary).................... 8,400 98,847
Bajaj Auto Ltd. alien shares (Consumer Discretionary)....... 10,000 117,204
Bharat Heavy Electricals Ltd. (Industrial & Commercial)..... 28,200 170,766
Bses (Utilities)............................................ 46,000 164,557
HDFC Bank Ltd (Finance)..................................... 4,200 219,934
Hindustan Lever Ltd alien shares (Consumer Staples)......... 5,800 264,713
Hindustan Lever Ltd. (Consumer Staples)..................... 6,700 305,789
Hindustan Petroleum Corp. Ltd. (Energy)..................... 30,000 159,496
Mahanagar Telephone Nigam Ltd. (Utilities).................. 15,000 61,532
Mahanagar Telephone Nigam Ltd. GDR (Information
Technology)*.............................................. 21,200 236,910
NIIT Ltd (Information Technology)........................... 4,700 234,171
Videsh Sanchar Nigam Ltd. GDR (Information Technology)...... 22,654 237,867
------------
2,271,786
------------
INDONESIA -- 0.2%
PT Telekomunikasi Indonesia ADR (Information Technology).... 10,500 78,750
------------
ISRAEL -- 1.7%
Bank Leumi Le Israel (Finance).............................. 241,300 341,081
Formula Systems Ltd. (Information Technology)............... 8,800 203,955
------------
545,036
------------
KOREA -- 1.1%
Korea Chemical (Materials).................................. 2,500 125,532
Korea Telecom (Utilities)................................... 3,600 119,030
L.G. Information and Comm (Information Technology).......... 2,000 69,191
Shinsegae Department Street (Consumer Discretionary)........ 1,800 41,668
------------
355,421
------------
MALAYSIA -- 1.8%
Berjaya Sports Toto Berhad (Information &
Entertainment)(2)......................................... 78,000 103,694
IJM Corp Berhad (Industrial & Commercial)(2)................ 348,000 207,981
Jaya Tiasa Holdings Berhad (Consumer Discretionary)(2)...... 43,000 52,106
Malakoff Berhad (Industrial & Commercial)(2)................ 38,000 79,129
PPB Oil Palms Berhad (Consumer Staples)(2).................. 207,000 137,838
------------
580,748
------------
MEXICO -- 10.4%
Alfa SA de CV, Class A (Multi-industry)+.................... 64,000 154,559
Cemex SA de CV, Class B (Materials)......................... 70,500 187,629
Coca Cola Femsa SA ADR (Consumer Staples)+.................. 20,500 257,531
Corporation Moctezuma (Materials)........................... 173,700 154,096
</TABLE>
---------------------
109
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
MEXICO (continued)
Fomento Economico Mexicano SA de CV ADR (Consumer
Staples).................................................. 180,400 $ 400,099
G Accion SA De CV (Real Estate)*(1)......................... 14,400 62,100
Grupo Carso SA de CV (Multi-industry)....................... 127,200 357,339
Grupo Imsa SA de C V (Multi-industry)....................... 15,300 169,256
Grupo Mexico SA (Materials)................................. 53,000 142,100
Grupo Television SA de CV GDR (Information &
Entertainment)+........................................... 16,700 427,937
Telefonos de Mexico SA ADR (Utilities)...................... 21,300 1,088,962
------------
3,401,608
------------
PERU -- 0.5%
Telefonica del Peru SA ADR (Information Technology)......... 14,800 175,750
------------
PHILIPPINES -- 2.5%
Bank Of Philippine Islands (Finance)........................ 45,600 113,704
Benpres Holdings Corp. (Multi-industry)..................... 640,000 96,416
Cosmos Bottling Co. (Consumer Staples)...................... 1,282,200 94,916
International Container Systems, Inc. (Materials)........... 1,505,050 99,685
Manila Electric Co. (Utilities)............................. 48,700 146,732
Philippine Long Distance Telephone Co. (Utilities).......... 5,300 123,896
SM Prime Holdings, Inc. (Real Estate)....................... 685,300 129,940
------------
805,289
------------
POLAND -- 0.5%
@Entertainment Inc. (Information & Entertainment)........... 16,700 181,613
------------
PORTUGAL -- 1.8%
Investec Consultoria International SA (Information &
Entertainment)............................................ 11,000 375,002
Semapa Sociedede de Investimento e Gestao, SGPS, SA
(Materials)............................................... 12,000 207,480
------------
582,482
------------
SOUTH AFRICA -- 4.8%
Energy Africa Ltd GDR (Energy)*............................. 7,700 43,312
Liberty Life Association of Africa Ltd. (Finance)........... 19,490 260,081
FirstRand Momentum Life Assurers, Ltd. (Finance)............ 392,343 470,553
Sanlam Ltd (Finance)........................................ 324,700 267,463
Sasol Ltd. (Multi-industry)................................. 62,700 221,051
South African Breweries (Consumer Staples).................. 19,400 313,213
------------
1,575,673
------------
SOUTH KOREA -- 10.8%
Hanjin Heavy Industries (Industrial & Commercial)........... 800 4,092
Hankuk Glass Industry Co., Ltd (Materials).................. 5,500 112,809
Hanwha Chemical Corp. (Materials)........................... 24,200 148,289
Housing & Commercial Bank, Korea (Finance).................. 26,000 372,851
Korea Electric Power Corp. (Utilities)...................... 32,500 894,787
Pohang Iron & Steel Co., Ltd. (Materials)................... 2,650 163,669
Pohang Iron & Steel Co., Ltd. ADR (Materials)............... 4,000 75,000
Samsung Display Devices Co. (Information Technology)........ 2,400 110,298
Samsung Electronics, Co. (Information Technology)........... 13,137 1,005,120
Samsung Fire & Marine Insurance (Finance)+.................. 552 180,398
Samsung Securities Co (Finance)............................. 6,600 166,826
SK Telecom Co. Ltd. Korea Mobile Telecommunications Corp.
(Information & Entertainment)............................. 290 221,881
Ssangyong Oil Refining Co., Ltd. (Energy)................... 5,800 88,851
------------
3,544,871
------------
</TABLE>
- ---------------------
110
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<TABLE>
<CAPTION>
COMMON STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
TAIWAN, PROVINCE OF CHINA -- 6.9%
Acer, Inc GDR (Information Technology)...................... 142,000 $ 163,026
ASE Test Ltd. (Information Technology)+..................... 7,300 263,713
Asustek Computer (Information Technology)................... 28,000 233,947
Bank Sinopac (Finance)...................................... 268,790 94,407
Hon Hai Precision Industry+ (Information Technology)........ 39,780 212,964
Nien Hsing Textile (Consumer Discretionary)................. 67,000 122,327
Pacific Electrical Wire & Cables Co. (Industrial &
Commercial)............................................... 204,540 115,198
President Chain Stores Corp. (Consumer Discretionary)....... 102,620 295,332
Siliconware Precision Industries Co. (Information
Technology)............................................... 100,000 187,220
Taiwan Semiconduct Manufacturing Co. Ltd. ADR (Information
Technology)............................................... 218,000 570,045
------------
2,258,179
------------
THAILAND -- 3.5%
Advanced Information Services PCL alien shares (Information
& Entertainment).......................................... 31,500 235,929
Bangkok Bank PCL alien shares (Finance)..................... 107,200 199,273
Electricity Generating PCL (Utilities)...................... 50,300 121,484
PTT Exploration & Production PCL alien shares (Energy)...... 11,000 82,985
Siam City Cement PCL alien shares (Materials)............... 10,800 246,187
Thai Farmers Bank alien shares (Finance).................... 114,000 216,554
United International Broadcasting Corp. PCL (Information &
Entertainment)............................................ 83,700 37,478
------------
1,139,890
------------
TURKEY -- 2.6%
Haci Omer Sabanci Holdings AS ADR (Finance)*................ 54,920 196,339
Migros Turk TAS (Consumer Discretionary).................... 260,000 257,156
Vestel Elektronik Sanayi ve Ticaret AS (Information
Technology)............................................... 1,560,800 114,610
Yapi Ve Kredi Bankasi AS (Finance).......................... 3,879 45,384
Yapi Ve Kredi Bankasi AS (Finance).......................... 20,580 240,786
------------
854,275
------------
UNITED KINGDOM -- 1.3%
Billiton PLC (Materials).................................... 97,300 182,738
Coca Cola Beverage PLC (Consumer Staples)................... 21,600 33,414
Lonrho PLC (Multi-industry)................................. 36,038 198,892
------------
415,044
------------
TOTAL COMMON STOCK (cost $28,406,385)....................... 28,616,821
------------
<CAPTION>
PREFERRED STOCK -- 3.7%
----------------------------------------------------------------------------------------
<S> <C> <C>
BRAZIL -- 2.4%
Banco Bradesco SA (Finance)................................. 31,200,190 104,771
Embraer (Industrial & Commercial)........................... 7,000,000 46,667
Embratel Participacoes SA (Information Technology).......... 10,800,000 122,667
Gerdau SA (Materials)....................................... 19,100,000 137,709
Paulista Forca E Luz Pn (Energy)............................ 8,068 339
Tele Nordeste Celular Participacoes SA (Information
Technology)............................................... 16,800,000 171,733
Telecomunicacoes de Sao Paulo SA (Utilities)................ 893 79
Telesp Cellular Participacoes SA (Information Technology)... 22,400,000 155,970
Telesp Participacoes SA (Information Technology)............ 3,500,000 62,222
------------
802,157
------------
</TABLE>
---------------------
111
<PAGE> 113
<TABLE>
<CAPTION>
PREFERRED STOCK (CONTINUED) SHARES VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
HUNGARY -- 1.3%
OTP Bank Rt (Finance)....................................... 7,700 $ 414,782
------------
TOTAL PREFERRED STOCK (cost $1,510,437)..................... 1,216,939
------------
<CAPTION>
PRINCIPAL
BONDS & NOTES -- 0.5% AMOUNT
----------------------------------------------------------------------------------------
<S> <C> <C>
RUSSIA -- 0.5%
Ministry of Finance Russia 12.75% 2028(1) (cost $323,644)... $ 545,000 $ 171,675
------------
RIGHTS -- 0.1% RIGHTS
----------------------------------------------------------------------------------------
BRAZIL -- 0.0%
Banco Bradesco.............................................. 1,972,987 3,432
Empresa Bra De Aeronautica.................................. 12 0
------------
3,432
------------
KOREA -- 0.1%
Samsung Electronics, Co. ................................... 664 21,813
------------
TOTAL RIGHTS (cost $0)...................................... 25,245
------------
TOTAL INVESTMENT SECURITIES (cost $30,240,466).............. 30,030,680
------------
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 8.9% AMOUNT
----------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 8.9%
Agreement with C.S. First Boston Corp., bearing interest at
4.68%, dated 01/29/99, to be repurchased 02/01/99 in the
amount of $2,904,132 and collateralized by $2,407,000 of
U.S. Treasury Bonds, bearing interest at 6.75%, due
08/15/26 and having an approximate aggregate value of
$2,969,277 (cost $2,903,000).............................. $ 2,903,000 2,903,000
------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL INVESTMENTS --
(cost $33,143,466) 100.7% 32,933,680
Liabilities in excess of other assets -- (0.7) (225,526)
------ ------------
NET ASSETS -- 100.0% $ 32,708,154
====== ============
</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
- ---------------------
112
<PAGE> 114
<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 $14,473
*USD 45,696 PHP 2,118,000 02/03/99 9,249
--------
$23,722
========
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------
GROSS UNREALIZED
DEPRECIATION
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PHP 20,407,000 USD 456,532 02/03/99 (72,857)
---------
Net Unrealized Depreciation........... $(49,135)
=========
</TABLE>
----------------------------
* Represents fully offsetting 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.
---------------------
113
<PAGE> 115
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1999
<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*.......... $ -- $107,503,225 $141,117,626 $274,553,557 $107,642,352
Short-term securities*.................... 269,067,858 10,144,456 19,409,361 1,990,000 3,053,530
Repurchase agreements (cost equals
market).................................. 7,695,000 -- -- 15,967,000 3,967,000
Cash...................................... -- 93 2,801 1,812 125
Foreign currency.......................... -- 525 -- -- --
Receivables for--
Fund shares sold......................... 1,396,525 117,496 445,795 611,786 38,102
Dividends and accrued interest........... 1,324,510 2,447,902 2,579,668 5,898,698 2,938,778
Sales of investments..................... -- 6,191,148 -- 3,992,745 686,528
Variation margin on futures contracts.... -- -- -- -- 69,100
Prepaid expenses.......................... 4,662 2,128 1,796 4,229 1,946
Unrealized appreciation on forward foreign
currency contracts....................... -- 848,229 -- -- 20,417
------------------------------------------------------------------------
279,488,555 127,255,202 163,557,047 303,019,827 118,417,878
------------------------------------------------------------------------
LIABILITIES:
Payables for--
Fund shares redeemed..................... 1,939,038 76,091 89,738 259,714 550,995
Management fees.......................... 111,866 70,934 82,647 154,089 99,571
Purchases of investments................. -- 4,454,257 4,505,571 9,495,918 649,830
Variation margin on futures contracts.... -- -- -- -- 62,804
Unrealized depreciation on forward foreign
currency contracts....................... -- 256,243 -- -- 695
Other accrued expenses.................... 66,989 91,594 74,988 73,022 77,399
Due to Custodian.......................... 1,120 -- -- -- --
------------------------------------------------------------------------
2,119,013 4,949,119 4,752,944 9,982,743 1,441,294
------------------------------------------------------------------------
NET ASSETS................................ $277,369,542 $122,306,083 $158,804,103 $293,037,084 $116,976,584
========================================================================
Shares of beneficial interest outstanding
(unlimited shares authorized)............ 25,986,329 10,238,905 13,241,170 26,300,874 11,560,020
Net asset value per share................. $ 10.67 $ 11.95 $ 11.99 $ 11.14 $ 10.12
========================================================================
COMPOSITION OF NET ASSETS:
Capital paid in........................... $265,036,112 $108,589,407 $149,014,602 $292,647,804 $142,760,232
Accumulated undistributed net investment
income................................... 12,229,481 4,677,221 8,221,379 30,350,019 13,739,476
Accumulated undistributed net realized
gain (loss) on investments, future
contracts and options contracts.......... 2,061 4,500,184 (165,800) (3,215,247) (31,291,141)
Unrealized appreciation (depreciation) on
investments.............................. 101,888 3,929,040 1,733,922 (26,745,492) (8,193,201)
Unrealized foreign exchange gain on other
assets and liabilities................... -- 610,231 -- -- 19,035
Unrealized appreciation (depreciation) on
futures.................................. -- -- -- -- (57,817)
------------------------------------------------------------------------
$277,369,542 $122,306,083 $158,804,103 $293,037,084 $116,976,584
========================================================================
---------------
* Cost
Investment securities.................... $ -- $103,573,805 $139,364,515 $301,276,719 $115,846,312
========================================================================
Short-term securities.................... $268,965,970 $ 10,144,836 $ 19,428,550 $ 2,012,330 $ 3,042,771
========================================================================
<CAPTION>
MFS
SUNAMERICA TOTAL ASSET
BALANCED RETURN+ ALLOCATION
------------------------------------------ -------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value*.......... $175,643,370 $132,755,293 $ 639,431,455
Short-term securities*.................... -- 17,293,970 14,569,924
Repurchase agreements (cost equals
market).................................. 17,738,000 -- 72,461,000
Cash...................................... 445 163,605 --
Foreign currency.......................... -- -- --
Receivables for--
Fund shares sold......................... 855,119 273,654 700,876
Dividends and accrued interest........... 773,480 668,605 2,951,805
Sales of investments..................... 2,073,638 2,466,961 33,741,800
Variation margin on futures contracts.... -- -- 1,090,556
Prepaid expenses.......................... 1,339 2,022 10,691
Unrealized appreciation on forward foreign
currency contracts....................... -- -- 51,650
-------------------------------------------
197,085,391 153,624,110 765,009,757
-------------------------------------------
LIABILITIES:
Payables for--
Fund shares redeemed..................... 302,662 127,263 1,262,255
Management fees.......................... 100,786 80,683 361,981
Purchases of investments................. 1,761,065 8,030,832 38,715,216
Variation margin on futures contracts.... -- -- --
Unrealized depreciation on forward foreign
currency contracts....................... -- -- --
Other accrued expenses.................... 43,079 53,264 132,557
Due to Custodian.......................... -- -- 21,283
-------------------------------------------
2,207,592 8,292,042 40,493,292
-------------------------------------------
NET ASSETS................................ $194,877,799 $145,332,068 $ 724,516,465
===========================================
Shares of beneficial interest outstanding
(unlimited shares authorized)............ 11,304,432 9,172,656 48,192,998
Net asset value per share................. $ 17.24 $ 15.84 $ 15.03
===========================================
COMPOSITION OF NET ASSETS:
Capital paid in........................... $159,509,943 $118,938,595 $ 658,185,902
Accumulated undistributed net investment
income................................... 2,245,167 3,326,145 21,896,099
Accumulated undistributed net realized
gain (loss) on investments, future
contracts and options contracts.......... 3,710,897 20,214,224 32,917,048
Unrealized appreciation (depreciation) on
investments.............................. 29,411,792 2,853,104 8,253,754
Unrealized foreign exchange gain on other
assets and liabilities................... -- -- 51,146
Unrealized appreciation (depreciation) on
futures.................................. -- -- 3,212,516
-------------------------------------------
$194,877,799 $145,332,068 $ 724,516,465
===========================================
---------------
* Cost
Investment securities.................... $146,231,578 $129,902,189 $ 631,238,121
===========================================
Short-term securities.................... $ -- $ 17,293,970 $ 14,509,504
===========================================
</TABLE>
+ Formerly Balanced/Phoenix Investment Counsel
See Notes to Financial Statements
- ---------------------
114
<PAGE> 116
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES (continued)
JANUARY 31, 1999
<TABLE>
<CAPTION>
GROWTH- FEDERATED VENTURE
UTILITY INCOME VALUE VALUE
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*.................... $71,996,500 $1,118,154,486 $155,898,129 $1,762,895,505
Short-term securities*.............................. 4,073,000 104,460,617 2,925,000 48,211,816
Repurchase agreements (cost equals market).......... -- -- -- 32,134,000
Cash................................................ 1,654 100,133 72 661
Foreign currency.................................... 19 -- -- --
Receivables for--
Fund shares sold................................... 248,471 1,615,769 200,952 1,426,039
Dividends and accrued interest..................... 235,348 601,484 109,926 1,257,417
Sales of investments............................... 885,413 1,205,858 1,016,030 1,087,348
Variation margin on futures contracts.............. -- 671,500 -- --
Prepaid expenses.................................... 687 12,642 1,496 21,961
Due from Adviser.................................... -- -- -- --
------------------------------------------------------------
77,441,092 1,226,822,489 160,151,605 1,847,034,747
------------------------------------------------------------
LIABILITIES:
Payables for--
Fund shares redeemed............................... 29,703 565,448 203,758 1,980,021
Management fees.................................... 48,374 530,432 99,323 1,114,728
Purchases of investments........................... -- 19,471,415 624,790 3,348,123
Other accrued expenses.............................. 39,959 141,843 48,228 238,325
Due to Advisor...................................... -- -- -- --
------------------------------------------------------------
118,036 20,709,138 976,099 6,681,197
------------------------------------------------------------
NET ASSETS.......................................... $77,323,056 $1,206,113,351 $159,175,506 $1,840,353,550
============================================================
Shares of beneficial interest outstanding (unlimited
shares authorized)................................. 5,305,241 43,264,333 9,579,819 75,493,245
Net asset value per share........................... $ 14.57 $ 27.88 $ 16.62 $ 24.38
============================================================
COMPOSITION OF NET ASSETS:
Capital paid in..................................... $68,661,884 $ 748,784,835 $131,918,792 $1,355,517,465
Accumulated undistributed net investment
income............................................. 1,703,411 7,335,562 1,334,671 15,544,750
Accumulated undistributed net realized gain
on investments, future contracts and options
contracts.......................................... 4,066,344 64,719,774 7,639,826 73,770,945
Unrealized appreciation (depreciation) on
investments........................................ 2,891,417 381,087,805 18,282,217 395,520,390
Unrealized appreciation on futures.................. -- 4,185,375 -- --
------------------------------------------------------------
$77,323,056 $1,206,113,351 $159,175,506 $1,840,353,550
============================================================
---------------
* Cost
Investment securities.............................. $69,105,083 $ 737,066,681 $137,615,912 $1,367,375,115
============================================================
Short-term securities.............................. $ 4,073,000 $ 104,460,617 $ 2,925,000 $ 48,211,816
============================================================
<CAPTION>
MFS
"DOGS" OF PUTNAM GROWTH AND
WALL STREET GROWTH INCOME+
---------------------------------------------------- -------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value*.................... $ 78,150,429 $479,782,834 $ 245,794,365
Short-term securities*.............................. -- -- 16,899,311
Repurchase agreements (cost equals market).......... 1,691,000 18,189,000 --
Cash................................................ 201 600 46,045
Foreign currency.................................... -- -- --
Receivables for--
Fund shares sold................................... 531,906 1,133,475 411,414
Dividends and accrued interest..................... 70,295 136,269 197,723
Sales of investments............................... -- 4,744,789 4,287,394
Variation margin on futures contracts.............. -- -- --
Prepaid expenses.................................... 4,355 5,342 4,872
Due from Adviser.................................... -- -- 23,748
------------------------------------------
80,448,186 503,992,309 267,664,872
------------------------------------------
LIABILITIES:
Payables for--
Fund shares redeemed............................... 96,780 239,437 156,387
Management fees.................................... 38,873 311,270 154,499
Purchases of investments........................... 2,188,039 8,543,793 1,221,820
Other accrued expenses.............................. 44,671 85,275 63,224
Due to Advisor...................................... 17,974 -- --
-------------------------------------------
2,386,337 9,179,775 1,595,930
-------------------------------------------
NET ASSETS.......................................... $ 78,061,849 $494,812,534 $ 266,068,942
===========================================
Shares of beneficial interest outstanding (unlimited
shares authorized)................................. 8,128,411 21,033,452 15,665,872
Net asset value per share........................... $ 9.60 $ 23.53 $ 16.98
===========================================
COMPOSITION OF NET ASSETS:
Capital paid in..................................... $ 77,735,860 $321,652,486 $ 179,260,364
Accumulated undistributed net investment
income............................................. 546,494 267,117 549,006
Accumulated undistributed net realized gain
on investments, future contracts and options
contracts.......................................... 2,830,641 19,359,448 66,452,107
Unrealized appreciation (depreciation) on
investments........................................ (3,051,146) 153,533,483 19,807,465
Unrealized appreciation on futures.................. -- -- --
-------------------------------------------
$ 78,061,849 $494,812,534 $ 266,068,942
---------------
* Cost
Investment securities.............................. $ 81,201,575 $326,249,351 $ 225,986,900
===========================================
Short-term securities.............................. $ -- $ -- $ 16,899,311
===========================================
</TABLE>
+ Formerly Growth/Phoenix Investment Counsel
See Notes to Financial Statements
---------------------
115
<PAGE> 117
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES (continued)
JANUARY 31, 1999
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
ALLIANCE GLOBAL GROWTH AND DIVERSIFIED REAL
GROWTH EQUITIES INCOME EQUITIES ESTATE
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment securities, at value*................ $1,857,776,945 $438,449,664 $135,138,635 $321,073,458 $57,442,891
Short-term securities*.......................... 23,083,000 21,085,000 -- -- --
Repurchase agreements (cost equals market)...... -- -- 11,297,000 46,968,000 1,835,000
Cash............................................ 327 966 477 2,173,382 2,725
Foreign currency................................ -- 2,865 26,721 109,095 --
Receivables for--
Fund shares sold............................... 4,974,410 268,382 415,343 239,217 50,620
Dividends and accrued interest................. 614,382 449,244 307,041 619,161 147,793
Foreign currency contracts..................... -- -- 7,711,401 3,087,806 --
Sales of investments........................... 12,767,201 4,278,496 2,466,166 3,703,679 1,444,492
Variation margin on futures contracts.......... -- -- -- 133,190 --
Prepaid expenses................................ 16,073 6,745 1,206 7,941 667
Deferred organizational expenses................ -- -- 4,343 -- 4,343
Unrealized appreciation on forward foreign
currency contracts............................. -- -- 74,645 649,425 --
Due from Adviser................................ -- -- -- -- --
---------------------------------------------------------------------------
1,899,232,338 464,541,362 157,442,978 378,764,354 60,928,531
---------------------------------------------------------------------------
LIABILITIES:
Payables for--
Fund shares redeemed........................... 912,051 378,611 173,516 254,302 128,917
Management fees................................ 880,688 279,376 119,450 310,784 40,687
Foreign currency contracts..................... -- -- 7,695,468 3,075,685 --
Purchases of investments....................... 32,309,013 566,718 5,619,060 -- 2,218,298
Unrealized depreciation on forward foreign
currency contracts............................. -- -- 1,162,112 1,068,736 --
Other accrued expenses.......................... 206,717 178,229 176,701 270,324 36,313
---------------------------------------------------------------------------
34,308,469 1,402,934 14,946,307 4,979,831 2,424,215
---------------------------------------------------------------------------
NET ASSETS...................................... $1,864,923,869 $463,138,428 $142,496,671 $373,784,523 $58,504,316
===========================================================================
Shares of beneficial interest outstanding
(unlimited shares authorized).................. 52,895,068 24,887,701 12,395,666 28,598,789 6,090,925
Net asset value per share....................... $ 35.26 $ 18.61 $ 11.50 $ 13.07 $ 9.61
===========================================================================
COMPOSITION OF NET ASSETS:
Capital paid in................................. $1,098,428,144 $338,545,052 $137,138,119 $314,595,492 $66,958,218
Accumulated undistributed net investment income
(loss)......................................... 2,757,752 3,631,491 750,530 6,736,807 2,065,317
Accumulated undistributed net realized gain
(loss) on investments, future contracts and
options contracts.............................. 185,033,486 34,484,412 282,787 (2,148,619) (2,815,402)
Unrealized appreciation (depreciation) on
investments.................................... 578,704,487 86,488,831 5,412,970 54,894,437 (7,703,817)
Unrealized foreign exchange loss on other assets
and liabilities................................ -- (11,358) (1,087,735) (412,930) --
Unrealized appreciation on futures.............. -- -- -- 119,336 --
---------------------------------------------------------------------------
$1,864,923,869 $463,138,428 $142,496,671 $373,784,523 $58,504,316
===========================================================================
---------------
* Cost
Investment securities.......................... $1,279,072,458 $351,960,833 $129,725,665 $266,179,021 $65,146,708
===========================================================================
Short-term securities.......................... $ 23,083,000 $ 21,085,000 $ -- $ -- $ --
===========================================================================
<CAPTION>
AGGRESSIVE EMERGING
GROWTH MARKETS
------------------------------------------------ ---------------------------
<S> <C> <C>
ASSETS:
Investment securities, at value*................ $159,216,606 $ 30,030,680
Short-term securities*.......................... -- --
Repurchase agreements (cost equals market)...... 23,693,000 2,903,000
Cash............................................ 180 405
Foreign currency................................ -- 11,586
Receivables for--
Fund shares sold............................... 405,857 34,644
Dividends and accrued interest................. 29,155 78,627
Foreign currency contracts..................... -- 90,799
Sales of investments........................... 2,526,802 --
Variation margin on futures contracts.......... -- --
Prepaid expenses................................ 1,635 335
Deferred organizational expenses................ -- 4,343
Unrealized appreciation on forward foreign
currency contracts............................. -- 23,722
Due from Adviser................................ -- 18,595
--------------------------
185,873,235 33,196,736
--------------------------
LIABILITIES:
Payables for--
Fund shares redeemed........................... 134,026 87,427
Management fees................................ 102,798 34,725
Foreign currency contracts..................... -- 93,210
Purchases of investments....................... 3,276,833 111,494
Unrealized depreciation on forward foreign
currency contracts............................. -- 72,857
Other accrued expenses.......................... 46,417 88,869
---------------------------
3,560,074 488,582
---------------------------
NET ASSETS...................................... $182,313,161 $ 32,708,154
===========================
Shares of beneficial interest outstanding
(unlimited shares authorized).................. 11,747,405 5,261,070
Net asset value per share....................... $ 15.52 $ 6.22
===========================
COMPOSITION OF NET ASSETS:
Capital paid in................................. $129,266,730 44,366,075
Accumulated undistributed net investment income
(loss)......................................... 385,632 (201,415)
Accumulated undistributed net realized gain
(loss) on investments, future contracts and
options contracts.............................. 15,138,991 (11,174,856)
Unrealized appreciation (depreciation) on
investments.................................... 37,521,808 (209,786)
Unrealized foreign exchange loss on other assets
and liabilities................................ -- (71,864)
Unrealized appreciation on futures.............. -- --
---------------------------
$182,313,161 $ 32,708,154
===========================
---------------
* Cost
Investment securities.......................... $121,694,798 $ 30,240,466
===========================
Short-term securities.......................... $ -- $ --
===========================
</TABLE>
See Notes to Financial Statements
- ---------------------
116
<PAGE> 118
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF OPERATIONS
FOR THE PERIOD DECEMBER 1, 1998 THROUGH JANUARY 31, 1999#
<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.......................... $2,444,826 $ 931,709 $1,746,734 $ 5,083,039 $ 2,117,815 $ 546,005
Dividends......................... -- -- 29,703 12,958 -- 168,376
------------------------------------------------------------------------------
Total income*................. 2,444,826 931,709 1,776,437 5,095,997 ,117,815 714,381
------------------------------------------------------------------------------
EXPENSES:
Management fees................... 224,945 139,771 161,457 305,048 198,398 189,910
Custodian fees.................... 21,781 37,628 25,835 22,371 5,565 10,337
Auditing fees..................... 11,645 15,175 11,800 11,785 15,175 10,045
Reports to investors.............. 9,220 1,700 4,235 10,948 2,100 4,715
Trustees' fees.................... 516 124 271 124 75 124
Legal fees........................ 195 195 195 195 195 195
Interest expense.................. -- -- -- 1,171 -- --
Other expenses.................... 1,246 712 640 1,079 900 550
------------------------------------------------------------------------------
Total expenses before custody
credits....................... 269,548 195,305 204,433 352,721 222,408 215,876
Custody credits earned on cash
balances...................... (26) (3) (365) (3,026) (2,315) (1,452)
------------------------------------------------------------------------------
Net investment income............... 2,175,304 736,407 1,572,369 4,746,302 1,897,722 499,957
------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gain (loss) on
investments..................... 9,646 850,091 169,323 (2,240,492) (1,225,523) 603,496
Net realized gain on futures and
options contracts............... -- -- -- -- -- --
Net realized foreign exchange gain
on other assets and
liabilities..................... -- 991,310 -- -- 33,517 --
Change in unrealized appreciation/
depreciation on investments..... 80,213 (340,048) 421,903 1,771,064 (3,005,904) 15,766,412
Change in unrealized foreign
exchange gain/ loss on other
assets and liabilities.......... -- (524,851) -- -- (16,102) --
Change in unrealized appreciation/
depreciation on futures and
option contracts................ -- -- -- -- (40,517) --
------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments and foreign
currencies........................ 89,859 976,502 591,226 (469,428) (4,254,529) 16,369,908
------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS........................ $2,265,163 $1,712,909 $2,163,595 $ 4,276,874 $(2,356,807) $16,869,865
==============================================================================
---------------
* Net of foreign withholding taxes
on interest and dividends of...... $ -- $ -- $ 4,450 $ -- $ -- $ 4,807
==============================================================================
<CAPTION>
MFS
TOTAL ASSET
RETURN+ ALLOCATION
------------------------------------ ---------------------------
<S> <C> <C>
INCOME:
Interest.......................... $ 607,662 $ 3,068,783
Dividends......................... 149,081 924,472
---------------------------
Total income*................. 756,743 3,993,255
---------------------------
EXPENSES:
Management fees................... 157,567 716,334
Custodian fees.................... 16,048 50,476
Auditing fees..................... 10,040 10,130
Reports to investors.............. 4,148 23,775
Trustees' fees.................... 75 309
Legal fees........................ 2,645 180
Interest expense.................. -- --
Other expenses.................... 685 3,205
---------------------------
Total expenses before custody
credits....................... 191,208 804,409
Custody credits earned on cash
balances...................... (973) (1,091)
---------------------------
Net investment income............... 566,508 3,189,937
---------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gain (loss) on
investments..................... 19,235,259 3,406,680
Net realized gain on futures and
options contracts............... -- 14,209,227
Net realized foreign exchange gain
on other assets and
liabilities..................... -- 282
Change in unrealized appreciation/
depreciation on investments..... (11,959,477) (3,779,986)
Change in unrealized foreign
exchange gain/ loss on other
assets and liabilities.......... -- 51,056
Change in unrealized appreciation/
depreciation on futures and
option contracts................ -- (6,198,783)
---------------------------
Net realized and unrealized gain
(loss) on investments and foreign
currencies........................ 7,275,782 7,688,476
---------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS........................ $ 7,842,290 $ 10,878,413
===========================
---------------
* Net of foreign withholding taxes
on interest and dividends of...... $ 1,282 $ 14,946
===========================
</TABLE>
# The Trust changed its fiscal year end from November 30 to January 31
+ Formerly Balanced/Phoenix Investment Counsel
See Notes to Financial Statements
---------------------
117
<PAGE> 119
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF OPERATIONS (continued)
FOR THE PERIOD DECEMBER 1, 1998 THROUGH JANUARY 31, 1999#
<TABLE>
<CAPTION>
MFS
GROWTH- FEDERATED VENTURE "DOGS" OF PUTNAM GROWTH AND
UTILITY INCOME VALUE VALUE WALL STREET GROWTH INCOME+
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCOME:
Interest................. $ 35,290 $ 662,843 $ 38,865 $ 863,605 $ 16,436 $ 118,670 $ 87,067
Dividends................ 456,930 1,498,412 377,941 4,069,099 202,406 384,340 397,655
-------------------------------------------------------------------------------------------------
Total income*........ 492,220 2,161,255 416,806 4,932,704 218,842 503,010 484,722
-------------------------------------------------------------------------------------------------
EXPENSES:
Management fees.......... 93,546 1,024,303 193,283 2,175,195 87,628 593,614 288,906
Custodian fees........... 9,480 44,366 14,282 75,770 9,957 31,782 15,075
Auditing fees............ 9,980 9,915 10,045 9,960 5,285 10,295 10,045
Reports to investors..... 2,360 35,600 4,785 57,140 400 13,135 3,775
Trustees' fees........... 75 516 271 761 114 114 75
Legal fees............... 195 780 195 1,950 195 195 3,135
Amortization of
organizational
expenses............... -- -- -- -- 200 -- --
Other expenses........... 432 3,813 570 13,121 638 1,293 1,083
-------------------------------------------------------------------------------------------------
Total expenses before
custody credits...... 116,068 1,119,293 223,431 2,333,897 104,417 650,428 322,094
Custody credits earned
on cash balances..... (20) (606) (7) -- (2) (112) --
-------------------------------------------------------------------------------------------------
Net investment income
(loss)................... 376,172 1,042,568 193,382 2,598,807 114,427 (147,306) 162,628
-------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gain on
investments............ 1,180,130 15,897,837 166,627 17,635,962 2,829,920 9,065,022 54,763,601
Net realized gain on
futures................ -- 5,844,488 -- -- -- -- --
Net realized foreign
exchange gain (loss) on
other assets and
liabilities............ 13 -- (6) 281 -- -- 3,628
Change in unrealized
appreciation/
depreciation on
investments............ (1,160,026) 134,285,475 4,903,370 76,104,286 (4,578,871) 58,656,179 (29,996,476)
Change in unrealized
foreign exchange
gain/loss on other
assets and
liabilities............ 9 (141) -- (267) -- -- --
Change in unrealized
appreciation/
depreciation on futures
and option contracts... -- (1,543,688) -- -- -- -- --
-------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on
investments and foreign
currencies............... 20,126 154,483,971 5,069,991 93,740,262 (1,748,951) 67,721,201 24,770,753
-------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS............... $ 396,298 $155,526,539 $5,263,373 $96,339,069 $(1,634,524) $67,573,895 $ 24,933,381
=================================================================================================
---------------
* Net of foreign
withholding taxes on
interest and dividends
of....................... $ 455 $ 10 $ 602 $ -- $ -- $ -- $ --
=================================================================================================
</TABLE>
# The Trust changed its fiscal year end from November 30 to January 31
+ Formerly Growth/Phoenix Investment Counsel
See Notes to Financial Statements
- ---------------------
118
<PAGE> 120
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF OPERATIONS (continued)
FOR THE PERIOD DECEMBER 1, 1998 THROUGH JANUARY 31, 1999#
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
ALLIANCE GLOBAL GROWTH AND DIVERSIFIED REAL
GROWTH EQUITIES INCOME EQUITIES ESTATE
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INCOME:
Interest................................... $ 101,788 $ 154,977 $ 101,065 $ 422,161 $ 29,581
Dividends.................................. 1,555,092 457,560 211,791 84,598 642,679
------------------------------------------------------------------------
Total income*.......................... 1,656,880 612,537 312,856 506,759 672,260
------------------------------------------------------------------------
EXPENSES:
Management fees............................ 1,551,967 545,025 231,046 612,770 81,013
Custodian fees............................. 79,520 68,935 85,155 135,029 7,405
Auditing fees.............................. 9,975 15,240 15,180 15,145 10,110
Reports to investors....................... 44,965 10,850 4,055 8,190 1,910
Trustees' fees............................. 1,006 271 75 75 865
Legal fees................................. 4,360 195 195 195 195
Amortization of organizational expenses.... -- -- 220 -- 220
Other expenses............................. 5,646 2,165 1,074 1,915 425
------------------------------------------------------------------------
Total expenses before reimbursement and
custody credits........................ 1,697,439 642,681 337,000 773,319 102,143
Expenses reimbursed by the investment
adviser................................ -- -- -- -- --
Custody credits earned on cash
balances............................... -- (355) (75) (9) --
------------------------------------------------------------------------
Net investment income (loss)................. (40,559) (29,789) (24,069) (266,551) 570,117
------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments.... 53,230,893 11,471,490 1,383,124 6,406,461 (1,725,506)
Net realized gain (loss) on futures and
options contracts........................ 637,521 -- -- (421,891) --
Net realized foreign exchange gain (loss)
on other assets and liabilities.......... -- (1,429,097) 9,412 (1,883,721) --
Change in unrealized
appreciation/depreciation on
investments.............................. 315,401,681 31,119,590 3,312,874 2,961,164 (478,582)
Change in unrealized foreign exchange gain/
loss on other assets and liabilities..... -- 810,121 (6,666) (674,306) --
Change in unrealized
appreciation/depreciation on futures and
option contracts......................... (757,500) -- -- 429,077 --
------------------------------------------------------------------------
Net realized and unrealized gain (loss) on
investments and foreign currencies......... 368,512,595 41,972,104 4,698,744 6,816,784 (2,204,088)
------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.................. $368,472,036 $41,942,315 $4,674,675 $ 6,550,233 $(1,633,971)
========================================================================
---------------
* Net of foreign withholding taxes on
interest and dividends of.................. $ -- $ 41,713 $ 38,666 $ 30,662 $ --
========================================================================
<CAPTION>
AGGRESSIVE EMERGING
GROWTH MARKETS
--------------------------------------------- --------------------------
<S> <C> <C>
INCOME:
Interest................................... $ 160,714 $ 27,029
Dividends.................................. 84,974 108,681
--------------------------
Total income*.......................... 245,688 135,710
--------------------------
EXPENSES:
Management fees............................ 188,017 67,951
Custodian fees............................. 10,816 38,272
Auditing fees.............................. 10,045 15,270
Reports to investors....................... 3,010 1,330
Trustees' fees............................. 75 75
Legal fees................................. 195 195
Amortization of organizational expenses.... -- 220
Other expenses............................. 587 1,101
--------------------------
Total expenses before reimbursement and
custody credits........................ 212,745 124,414
Expenses reimbursed by the investment
adviser................................ -- (21,016)
Custody credits earned on cash
balances............................... (536) (112)
--------------------------
Net investment income (loss)................. 33,479 32,424
--------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments.... 10,344,666 (1,240,780)
Net realized gain (loss) on futures and
options contracts........................ (322,075) --
Net realized foreign exchange gain (loss)
on other assets and liabilities.......... -- (117,495)
Change in unrealized
appreciation/depreciation on
investments.............................. 25,390,587 1,414,903
Change in unrealized foreign exchange gain/
loss on other assets and liabilities..... -- (38,964)
Change in unrealized
appreciation/depreciation on futures and
option contracts......................... -- --
--------------------------
Net realized and unrealized gain (loss) on
investments and foreign currencies......... 35,413,178 17,664
--------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.................. $35,446,657 $ 50,088
==========================
---------------
* Net of foreign withholding taxes on
interest and dividends of.................. $ -- $ 11,893
==========================
</TABLE>
# The Trust changed its fiscal year end from November 30 to January 31
See Notes to Financial Statements
---------------------
119
<PAGE> 121
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD DECEMBER 1, 1998 THROUGH JANUARY 31, 1999
<TABLE>
<CAPTION>
CASH CORPORATE HIGH-YIELD WORLDWIDE SUNAMERICA
MANAGEMENT GLOBAL BOND BOND BOND HIGH INCOME BALANCED
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income................ $ 2,175,304 $ 736,407 $ 1,572,369 $ 4,746,302 $ 1,897,722 $ 499,957
Net realized gain (loss) on
investments......................... 9,646 850,091 169,323 (2,240,492) (1,225,523) 603,496
Net realized gain on futures and
option contracts.................... -- -- -- -- -- --
Net realized foreign exchange gain on
other assets and liabilities........ -- 991,310 -- -- 33,517 --
Change in unrealized appreciation/
depreciation on investments......... 80,213 (340,048) 421,903 1,771,064 (3,005,904) 15,766,412
Change in unrealized foreign exchange
gain/loss on other assets and
liabilities......................... -- (524,851) -- -- (16,102) --
Change in unrealized appreciation/
depreciation on futures and options
contracts........................... -- -- -- -- (40,517) --
----------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations........... 2,265,163 1,712,909 2,163,595 4,276,874 (2,356,807) 16,869,865
----------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment
income............................ -- -- -- -- -- --
Distribution from net realized gain
on investments.................... -- -- -- -- -- --
----------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders........................ -- -- -- -- -- --
----------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold............ 417,868,561 10,112,554 20,469,501 27,358,549 11,308,899 37,235,600
Proceeds from shares issued for
reinvestment of dividends and
distributions....................... -- -- -- -- -- --
Cost of shares repurchased........... (366,404,273) (4,947,595) (7,390,279) (23,178,837) (13,265,058) (8,469,273)
----------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from capital share
transactions........................ 51,464,288 5,164,959 13,079,222 4,179,712 (1,956,159) 28,766,327
----------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS.............................. 53,729,451 6,877,868 15,242,817 8,456,586 (4,312,966) 45,636,192
NET ASSETS:
Beginning of period.................. 223,640,091 115,428,215 143,561,286 284,580,498 121,289,550 149,241,607
----------------------------------------------------------------------------------------
End of period........................ $ 277,369,542 $122,306,083 $158,804,103 $293,037,084 $116,976,584 $194,877,799
========================================================================================
---------------
Undistributed net investment
income.............................. $ 12,229,481 $ 4,677,221 $ 8,221,379 $ 30,350,019 $ 13,739,476 $ 2,245,167
========================================================================================
Shares issued and repurchased:
Sold................................. 39,339,533 852,492 1,723,714 2,488,265 1,113,204 2,263,271
Issued in reinvestment of dividends
and distributions................... -- -- -- -- -- --
Repurchased.......................... (34,491,050) (419,784) (622,391) (2,108,316) (1,316,953) (516,546)
----------------------------------------------------------------------------------------
Net increase (decrease).............. 4,848,483 432,708 1,101,323 379,949 (203,749) 1,746,725
========================================================================================
<CAPTION>
MFS TOTAL ASSET
RETURN+ ALLOCATION
------------------------------------- ----------------------------
<S> <C> <C>
OPERATIONS:
Net investment income................ $ 566,508 $ 3,189,937
Net realized gain (loss) on
investments......................... 19,235,259 3,406,680
Net realized gain on futures and
option contracts.................... -- 14,209,227
Net realized foreign exchange gain on
other assets and liabilities........ -- 282
Change in unrealized appreciation/
depreciation on investments......... (11,959,477) (3,779,986)
Change in unrealized foreign exchange
gain/loss on other assets and
liabilities......................... -- 51,056
Change in unrealized appreciation/
depreciation on futures and options
contracts........................... -- (6,198,783)
----------------------------
Net increase (decrease) in net assets
resulting from operations........... 7,842,290 10,878,413
----------------------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment
income............................ -- --
Distribution from net realized gain
on investments.................... -- --
----------------------------
Total dividends and distributions to
shareholders........................ -- --
----------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold............ 11,312,991 39,789,134
Proceeds from shares issued for
reinvestment of dividends and
distributions....................... -- --
Cost of shares repurchased........... (5,262,953) (39,196,352)
----------------------------
Net increase (decrease) in net assets
resulting from capital share
transactions........................ 6,050,038 592,782
----------------------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS.............................. 13,892,328 11,471,195
NET ASSETS:
Beginning of period.................. 131,439,740 713,045,270
----------------------------
End of period........................ $145,332,068 $ 724,516,465
============================
---------------
Undistributed net investment
income.............................. $ 3,326,145 $ 21,896,099
============================
Shares issued and repurchased:
Sold................................. 722,994 2,664,197
Issued in reinvestment of dividends
and distributions................... -- --
Repurchased.......................... (335,735) (2,618,333)
----------------------------
Net increase (decrease).............. 387,259 45,864
============================
</TABLE>
+ Formerly Balanced/Phoenix Investment Counsel
See Notes to Financial Statements
- ---------------------
120
<PAGE> 122
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (continued)
FOR THE PERIOD DECEMBER 1, 1998 THROUGH JANUARY 31, 1999
<TABLE>
<CAPTION>
GROWTH- FEDERATED VENTURE "DOGS" OF
UTILITY INCOME VALUE VALUE WALL STREET
<S> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)................. $ 376,172 $ 1,042,568 $ 193,382 $ 2,598,807 $ 114,427
Net realized gain on investments............. 1,180,130 15,897,837 166,627 17,635,962 2,829,920
Net realized gain on futures................. -- 5,844,488 -- -- --
Net realized foreign exchange gain (loss) on
other assets and liabilities................ 13 -- (6) 281 --
Change in unrealized
appreciation/depreciation on investments.... (1,160,026) 134,285,475 4,903,370 76,104,286 (4,578,871)
Change in unrealized foreign exchange
gain/loss on other assets and liabilities... 9 (141) -- (267) --
Change in unrealized
appreciation/depreciation on futures and
options contracts........................... -- (1,543,688) -- -- --
---------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations................... 396,298 155,526,539 5,263,373 96,339,069 (1,634,524)
---------------------------------------------------------------------------
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.................... 13,044,515 85,700,857 17,210,109 97,925,406 18,661,965
Proceeds from shares issued for reinvestment
of dividends and distributions.............. -- -- -- -- --
Cost of shares repurchased................... (4,166,465) (54,704,172) (9,197,815) (79,321,761) (4,248,773)
---------------------------------------------------------------------------
Net increase in net assets resulting from
capital share transactions.................. 8,878,050 30,996,685 8,012,294 18,603,645 14,413,192
---------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS................. 9,274,348 186,523,224 13,275,667 114,942,714 12,778,668
NET ASSETS:
Beginning of period.......................... 68,048,708 1,019,590,127 145,899,839 1,725,410,836 65,283,181
---------------------------------------------------------------------------
End of period................................ $77,323,056 $1,206,113,351 $159,175,506 $1,840,353,550 $78,061,849
===========================================================================
---------------
Undistributed net investment income.......... $ 1,703,411 $ 7,335,562 $ 1,334,671 $ 15,544,750 $ 546,494
===========================================================================
Shares issued and repurchased:
Sold......................................... 881,293 3,281,847 1,060,836 4,116,195 1,905,522
Issued in reinvestment of dividends and
distributions............................... -- -- -- -- --
Repurchased.................................. (281,470) (2,090,295) (565,865) (3,331,735) (432,734)
---------------------------------------------------------------------------
Net increase................................. 599,823 1,191,552 494,971 784,460 1,472,788
===========================================================================
<CAPTION>
<S> <C> <C>
---------------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss)................. $ (147,306) $ 162,628
Net realized gain on investments............. 9,065,022 $ 54,763,601
Net realized gain on futures................. -- --
Net realized foreign exchange gain (loss) on
other assets and liabilities................ -- 3,628
Change in unrealized
appreciation/depreciation on investments.... 58,656,179 (29,996,476)
Change in unrealized foreign exchange
gain/loss on other assets and liabilities... -- --
Change in unrealized
appreciation/depreciation on futures and
options contracts........................... -- --
----------------------------
Net increase (decrease) in net assets
resulting from operations................... 67,573,895 24,933,381
----------------------------
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.................... 56,653,856 11,852,834
Proceeds from shares issued for reinvestment
of dividends and distributions.............. -- --
Cost of shares repurchased................... (28,278,432) (9,015,745)
----------------------------
Net increase in net assets resulting from
capital share transactions.................. 28,375,424 2,837,089
----------------------------
TOTAL INCREASE IN NET ASSETS................. 95,949,319 27,770,470
NET ASSETS:
Beginning of period.......................... 398,863,215 238,298,472
----------------------------
End of period................................ $494,812,534 $ 266,068,942
============================
---------------
Undistributed net investment income.......... $ 267,117 $ 549,006
============================
Shares issued and repurchased:
Sold......................................... 2,574,099 711,914
Issued in reinvestment of dividends and
distributions............................... -- --
Repurchased.................................. (1,281,139) (548,064)
----------------------------
Net increase................................. 1,292,960 163,850
============================
</TABLE>
+ Formerly Growth/Phoenix Investment Counsel
See Notes to Financial Statements
---------------------
121
<PAGE> 123
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (continued)
FOR THE PERIOD DECEMBER 1, 1998 THROUGH JANUARY 31, 1999
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
ALLIANCE GLOBAL GROWTH AND DIVERSIFIED
GROWTH EQUITIES INCOME EQUITIES
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......................... $ (40,559) $ (29,789) $ (24,069) $ (266,551)
Net realized gain (loss) on investments............... 53,230,893 11,471,490 1,383,124 6,406,461
Net realized gain (loss) on futures and options
contracts............................................ 637,521 -- -- (421,891)
Net realized foreign exchange gain (loss) on other
assets and liabilities............................... -- (1,429,097) 9,412 (1,883,721)
Change in unrealized appreciation/depreciation on
investments.......................................... 315,401,681 31,119,590 3,312,874 2,961,164
Change in unrealized foreign exchange gain/loss on
other assets and liabilities......................... -- 810,121 (6,666) (674,306)
Change in unrealized appreciation/depreciation on
futures and options contracts........................ (757,500) -- -- 429,077
-------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations........................................... 368,472,036 41,942,315 4,674,675 6,550,233
-------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment income................. -- -- (265,000) --
Distribution from net realized gain on investments... -- -- (2,235,000) --
-------------------------------------------------------------
Total dividends and distributions to shareholders..... -- -- (2,500,000) --
-------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold............................. 204,611,303 35,563,067 25,897,133 220,533,560
Proceeds from shares issued for reinvestment of
dividends and distributions.......................... -- -- 2,500,000 --
Cost of shares repurchased............................ (104,299,490) (34,724,943) (16,419,004) (207,473,512)
-------------------------------------------------------------
Net increase in net assets resulting from capital
share transactions................................... 100,311,813 838,124 11,978,129 13,060,048
-------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS............... 468,783,849 42,780,439 14,152,804 19,610,281
NET ASSETS:
Beginning of period................................... 1,396,140,020 420,357,989 128,343,867 354,174,242
-------------------------------------------------------------
End of period......................................... $1,864,923,869 $463,138,428 $142,496,671 $ 373,784,523
-------------------------------------------------------------
---------------
Undistributed net investment income (loss)............ $ 2,757,752 $ 3,631,491 $ 750,530 $ 6,736,807
-------------------------------------------------------------
Shares issued and repurchased:
Sold.................................................. 6,451,097 1,978,139 2,268,946 17,063,994
Issued in reinvestment of dividends and
distributions........................................ -- -- 217,960 --
Repurchased........................................... (3,339,403) (1,957,914) (1,434,448) (16,008,763)
-------------------------------------------------------------
Net increase.......................................... 3,111,694 20,225 1,052,458 1,055,231
-------------------------------------------------------------
<CAPTION>
REAL AGGRESSIVE EMERGING
ESTATE GROWTH MARKETS
------------------------------------------------------ -----------------------------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......................... $ 570,117 $ 33,479 $ 32,424
Net realized gain (loss) on investments............... (1,725,506) 10,344,666 (1,240,780)
Net realized gain (loss) on futures and options
contracts............................................ -- (322,075) --
Net realized foreign exchange gain (loss) on other
assets and liabilities............................... -- -- (117,495)
Change in unrealized appreciation/depreciation on
investments.......................................... (478,582) 25,390,587 1,414,903
Change in unrealized foreign exchange gain/loss on
other assets and liabilities......................... -- -- (38,964)
Change in unrealized appreciation/depreciation on
futures and options contracts........................ -- -- --
-----------------------------------------
Net increase (decrease) in net assets resulting from
operations........................................... (1,633,971) 35,446,657 50,088
-----------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment income................. -- -- (65,000)
Distribution from net realized gain on investments... -- -- --
-----------------------------------------
Total dividends and distributions to shareholders..... -- -- (65,000)
-----------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold............................. 6,179,281 28,460,612 3,246,429
Proceeds from shares issued for reinvestment of
dividends and distributions.......................... -- -- 65,000
Cost of shares repurchased............................ (5,142,635) (14,776,792) (2,273,641)
-----------------------------------------
Net increase in net assets resulting from capital
share transactions................................... 1,036,646 13,683,820 1,037,788
-----------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS............... (597,325) 49,130,477 1,022,876
NET ASSETS:
Beginning of period................................... 59,101,641 133,182,684 31,685,278
-----------------------------------------
End of period......................................... $58,504,316 $182,313,161 $ 32,708,154
-----------------------------------------
---------------
Undistributed net investment income (loss)............ $ 2,065,317 $ 385,632 $ (201,415)
-----------------------------------------
Shares issued and repurchased:
Sold.................................................. 630,827 2,008,807 525,444
Issued in reinvestment of dividends and
distributions........................................ -- -- 10,400
Repurchased........................................... (524,134) (1,075,513) (366,917)
-----------------------------------------
Net increase.......................................... 106,693 933,294 168,927
-----------------------------------------
</TABLE>
See Notes to Financial Statements
- ---------------------
122
<PAGE> 124
- ---------------------
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
---------------------
123
<PAGE> 125
- ---------------------
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
- ---------------------
124
<PAGE> 126
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF OPERATIONS (continued)
FOR THE YEAR ENDED NOVEMBER 30, 1998
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
ALLIANCE GLOBAL GROWTH AND 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
---------------------
125
<PAGE> 127
- ---------------------
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
- ---------------------
126
<PAGE> 128
- ---------------------
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
---------------------
127
<PAGE> 129
- ---------------------
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (continued)
FOR THE YEAR ENDED NOVEMBER 30, 1998
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
ALLIANCE GLOBAL GROWTH AND 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
- ---------------------
128
<PAGE> 130
- ---------------------
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
---------------------
129
<PAGE> 131
- ---------------------
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
- ---------------------
130
<PAGE> 132
- ---------------------
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 ga
(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 ass
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 distribution
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 divide
and distributions.............. --
Repurchased..................... (227,806)
------------
Net increase.................... 2,488,005
============
---------------
+ Commenced operations June 2, 1
</TABLE>
See Notes to Financial Statements
---------------------
131
<PAGE> 133
- ---------------------
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 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 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 MFS TOTAL RETURN PORTFOLIO (formerly 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 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.
- ---------------------
132
<PAGE> 134
The MFS GROWTH AND INCOME PORTFOLIO (formerly Growth/Phoenix Investment Counsel
Portfolio) seeks reasonable current income and long term growth of capital and
income by normally investing in equity securities.
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
---------------------
133
<PAGE> 135
when collection is not expected. Dividend income and distributions are recorded
on the ex-dividend date except for certain dividends from foreign securities,
which are recorded as soon as the Trust is informed after the ex-dividend date.
The Trust amortizes premiums and accretes discounts on fixed income securities,
as well as those original issue discounts for which amortization is required for
federal income tax purposes; gains and losses realized upon the sale of such
securities are based on their identified cost. Portfolios which earn foreign
income and capital gains may be subject to foreign withholding taxes at various
rates.
Common expenses incurred by the Trust are allocated among the Portfolios based
upon relative net assets or other appropriate allocation methods. In all other
respects, expenses are charged to each Portfolio as incurred on a specific
identification basis.
The Portfolios record dividends and distributions to their shareholders on the
ex-dividend date. The amount of dividends and distributions from net investment
income and net realized capital gains are determined and presented in accordance
with federal income tax regulations, which may differ from generally accepted
accounting principles. These "book/tax" differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature, such amounts are reclassified within the capital accounts based on
their federal tax-basis treatment; temporary differences do not require
reclassification. Dividends and distributions which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains. To the extent
distributions exceed current and accumulated earnings and profits for federal
income tax purposes, they are reported as distributions of paid-in capital. Net
investment income/loss, net realized gain/loss, and net assets are not affected.
For the period December 1, 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>
Cash Management...................................... $ -- $ -- $ --
Global Bond.......................................... 959,156 (959,156) --
Corporate Bond....................................... (1,184) 1,184 --
High-Yield Bond...................................... -- -- --
Worldwide High Income................................ 33,518 (33,518) --
Asset Allocation..................................... (1,919) 3,899 (1,980)
SunAmerica Balanced.................................. -- -- --
MFS Total Return..................................... 1,119 (1,119) --
Utility.............................................. 13 (13) --
Growth-Income........................................ -- -- --
Federated Value...................................... (6) 6 --
Venture Value........................................ 281 (281) --
"Dogs" of Wall Street................................ 200 -- (200)
Putnam Growth........................................ 147,306 (147,306) --
MFS Growth and Income................................ 3,628 (3,628) --
Alliance Growth...................................... 40,559 (40,559) --
Global Equities...................................... (708,596) 953,006 (244,410)
International Growth and Income...................... 193,353 (193,133) (220)
International Diversified Equities................... 1,869,544 1,482,221 (3,351,765)
Real Estate.......................................... (54,239) 8,010 46,229
Aggressive Growth.................................... -- -- --
Emerging Markets..................................... (115,990) 116,210 (220)
</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. Such organizational expenses are being
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 January 31, 1999, the Aggressive Growth, High-Yield Bond, Cash Management,
SunAmerica Balanced and "Dogs" of Wall Street Portfolios had a 16.8%, 11.3%,
5.5%, 12.6% and 1.2%, respectively, undivided interest, representing
$23,693,000, $15,967,000, $7,695,000, $17,738,000 and $1,691,000, respectively,
in principal amount, in a joint repo with State Street Bank & Trust Co., which
is dated January 29, 1999, bears interest at the rate of 4.65% per annum, has a
principal amount of $140,700,000
- ---------------------
134
<PAGE> 136
and a repurchase price of $140,754,521, matures on February 1, 1999, and is
collateralized by $16,055,000 of U.S. Treasury Notes (bearing interest at the
rate of 4.00% per annum and maturing October 31, 2000), $44,990,000 of U.S.
Treasury Bonds (bearing interest at the rate of 6.13% per annum and maturing
November 15, 2027), $65,040,000 of U.S. Treasury Notes (bearing interest at the
rate of 7.50% per annum and maturing February 2, 2005), which together have an
approximate value of $143,525,575.
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 January 31, 1999 the International Diversified Equities Portfolio had
$2,172,750 and $13,854 in cash and foreign cash, respectively, segregated for
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 January 31, 1999, 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....................... $ 146,284 $ 44,396 $ 101,888 $ 276,660,970 $ -- $ 2,503
Global Bond........................... 4,461,123 532,083 3,929,040 113,718,641 -- --
Corporate Bond........................ 4,288,995 2,555,073 1,733,922 158,793,065 165,800 52,518
High-Yield Bond**..................... 4,707,864 31,866,478 (27,158,614) 319,669,171 467,629 --
Worldwide High Income**............... 2,371,682 10,914,839 (8,543,157) 123,206,039 27,857,764 --
SunAmerica Balanced................... 30,611,015 1,607,015 29,004,000 164,377,370 -- --
MFS Total Return...................... 5,997,339 3,164,522 2,832,817 147,216,446 -- --
Asset Allocation...................... 40,063,356 32,345,834 7,717,522 718,744,857 -- --
Utility............................... 5,932,616 3,172,728 2,759,888 73,309,612 -- --
Growth-Income......................... 389,456,968 12,554,538 376,902,430 845,712,673 -- --
Federated Value***.................... 25,470,808 7,324,602 18,146,206 140,676,923 -- --
Venture Value......................... 439,404,293 43,983,712 395,420,581 1,447,820,740 -- --
"Dogs" of Wall Street................. 2,389,806 5,449,048 (3,059,242) 82,900,671 -- --
Putnam Growth......................... 154,349,443 1,047,531 153,301,912 344,669,922 -- --
MFS Growth and Income................. 28,841,855 9,161,915 19,679,940 243,013,736 -- --
</TABLE>
---------------------
135
<PAGE> 137
<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>
Alliance Growth....................... $601,414,840 $24,127,532 $577,287,308 $1,303,572,637 $ -- $ --
Global Equities....................... 102,654,250 17,849,721 84,804,529 374,730,135 -- --
International Growth and Income....... 11,755,810 7,607,271 4,148,539 142,287,096 -- --
International Diversified Equities.... 61,834,981 12,642,472 49,192,509 318,848,949 -- 3,893,300
Real Estate**......................... 817,611 8,295,390 (7,477,779) 66,755,670 1,091,994 --
Aggressive Growth..................... 42,351,940 6,586,462 35,765,478 147,144,128 -- --
Emerging Markets**.................... 4,728,286 5,369,290 (641,004) 33,574,684 8,943,573 --
</TABLE>
* Expires 2004-2006
** Post 10/31/98 Capital Loss Deferrals: High Yield Bond $2,334,495; Worldwide
High Income $3,083,420; Real Estate $1,678,576; Emerging Markets $1,882,813.
*** Post 10/31/98 Currency Loss Deferrals; Federated Value $6; Emerging Markets
$123,655.
+ Net capital loss carryovers reported as of January 31, 1999, 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
SunAmerica Balanced- $0--$ 50 million 0.70%
Growth-Income > $ 50 million 0.65%
> $150 million 0.60%
> $300 million 0.55%
> $500 million 0.50%
Alliance Growth $0--$ 50 million 0.70%
> $ 50 million 0.60%
> $150 million 0.70%
MFS Total Return $0--$ 50 million 0.65%
> $ 50 million
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------
MANAGEMENT
PORTFOLIO ASSETS FEES
<S> <C> <C>
Utility-Federated Value $0--$150 million 0.75%
> $150 million 0.60%
> $500 million 0.50%
Venture Value-Real Estate $0--$100 million 0.80%
> $100 million 0.75%
> $500 million 0.70%
"Dogs" of Wall Street > $ 0 0.60%
Putnam Growth $0--$150 million 0.85%
> $150 million 0.80%
> $300 million 0.70%
MFS Growth and Income $0--$600 million 0.70%
> $600 million 0.65%
> $1.5 billion 0.60%
International Growth and $0--$150 million 1.00%
Income > $150 million 0.90%
> $300 million 0.80%
Global Equities $0--$ 50 million 0.90%
> $ 50 million 0.80%
> $150 million 0.70%
> $300 million 0.65%
Aggressive Growth $0--$100 million 0.75%
> $100 million 0.675%
> $250 million 0.625%
> $500 million 0.60%
Emerging Markets > $ 0 1.25%
</TABLE>
- ---------------------
136
<PAGE> 138
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. Effective January 1, 1999 Massachusetts Financial Services Co.
serves as subadviser for the MFS Total Return and MFS Growth and Income
Portfolios, formerly Balanced/Phoenix Investment Counsel and Growth/Phoenix
Investment Counsel Portfolios, respectively. 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
Growth-Income $0--$ 50 million 0.35%
> $ 50 million 0.30%
> $150 million 0.25%
> $300 million 0.20%
> $500 million 0.15%
Alliance Growth $0--$ 50 million 0.35%
> $ 50 million 0.30%
> $150 million 0.25%
MFS Total Return > $ 0 0.375%
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%
MFS Growth and Income $0--$300 million 0.40%
> $300 million 0.375%
> $600 million 0.35%
> $900 million 0.325%
> $1.5 million 0.25%
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.
---------------------
137
<PAGE> 139
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>
"Dogs" of Wall Street Portfolio............................. $13,923 $ 1,193
Emerging Markets Portfolio.................................. -- 106,192
</TABLE>
6. PURCHASES AND SALES OF SECURITIES: Information with respect to purchases and
sales of long-term securities for the period December 1, 1998 through January
31, 1999 were 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)............................. $ -- $24,436,478 $10,173,120 $58,886,211 $13,831,958 $14,566,349
Sales of portfolio securities (excluding
U.S. government securities)............. -- 11,809,626 3,291,522 46,272,500 13,467,615 10,009,268
Purchases of U.S. government securities... -- 8,384,998 10,734,679 -- -- 47,160,055
Sales of U.S. government securities....... -- 20,049,703 1,815,269 -- -- 30,535,513
</TABLE>
<TABLE>
<CAPTION>
MFS TOTAL ASSET GROWTH- FEDERATED VENTURE
RETURN ALLOCATION UTILITY INCOME VALUE VALUE
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Purchases of portfolio securities
(excluding U.S. government
securities)............................. $79,788,965 $180,517,043 $14,957,451 $208,484,606 $14,533,639 $134,484,045
Sales of portfolio securities (excluding
U.S. government securities)............. 85,988,547 127,879,203 6,092,537 165,313,804 6,640,398 77,109,674
Purchases of U.S. government securities... 36,673,218 53,927,434 -- -- --
Sales of U.S. government securities....... 21,807,133 60,124,905 2,264,590 -- -- --
</TABLE>
<TABLE>
<CAPTION>
MFS
"DOGS" OF PUTNAM GROWTH AND ALLIANCE GLOBAL
WALL STREET GROWTH INCOME GROWTH EQUITIES
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Purchases of portfolio securities
(excluding U.S. government
securities)............................. $45,657,305 $70,040,481 $184,749,058 $284,669,659 $45,440,051
Sales of portfolio securities (excluding
U.S. government securities)............. 29,067,288 40,410,755 194,260,890 176,934,235 50,323,423
Purchases of U.S. government securities... -- 737,223 368,986 -- 3,621,428
Sales of U.S. government securities....... -- 2,366,499 2,431,520 -- --
</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)............................ $27,003,581 $22,248,728 $9,318,080 $48,412,824 $6,810,637
Sales of portfolio securities (excluding U.S.
government securities)............................ 13,274,200 29,405,220 3,275,251 39,385,376 7,811,113
Purchases of U.S. government securities............. -- -- -- -- --
Sales of U.S. government securities................. -- -- -- -- --
</TABLE>
7. TRANSACTIONS WITH AFFILIATES: The following Portfolios incurred brokerage
commissions with an affiliated broker:
<TABLE>
<CAPTION>
GOLDMAN SHELBY
SACHS & CO. CULLOM DAVIS
----------- ------------
<S> <C> <C>
Asset Allocation Portfolio.................................. $ 32,590 $ --
Venture Value Portfolio..................................... -- 5,130
</TABLE>
As disclosed in the investment portfolios, certain Portfolios own common stock
issued by American International Group, Inc. ("AIG"). Effective January 1, 1999,
SAAMCo, the investment adviser, became a wholly owned subsidiary of AIG. During
the period January 1, 1999 through January 31, 1999, the MFS Total Return
Portfolio sold 11,150 shares of AIG common stock for $1,133,906, which resulted
in a realized gain of $218,453, and the MFS Growth and Income Portfolio sold
39,100 shares of AIG common stock for $3,846,526, which resulted in a realized
gain of $537,778.
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.
- ---------------------
138
<PAGE> 140
- ---------------------
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
1/31/99# 10.58 0.08 0.01 0.09
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
1/31/99# 11.77 0.07 0.11 0.18
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
1/31/99# 11.83 0.12 0.04 0.16
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)
1/31/99# 10.98 0.18 (0.02) 0.16
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)
1/31/99# 10.31 0.16 (0.35) (0.19)
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
1/31/99# 15.61 0.05 1.58 1.63
MFS Total Return 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
1/31/99# 14.96 0.06 0.82 0.88
<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
1/31/99# -- -- 10.67 0.85 277,370
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
1/31/99# -- -- 11.95 1.53 122,306
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
1/31/99# -- -- 11.99 1.35 158,804
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
1/31/99# -- -- 11.14 1.46 293,037
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
1/31/99# -- -- 10.12 (1.84) 116,977
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
1/31/99# -- -- 17.24 10.44 194,878
MFS Total Return 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
1/31/99# -- -- 15.84 5.88 145,332
<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 --
1/31/99# 0.62+ 5.02+ --
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
1/31/99# 0.97+ 3.65+ 30
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
1/31/99# 0.80+ 6.16+ 4
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
1/31/99# 0.72+ 9.71+ 17
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
1/31/99# 1.11+@ 9.57+@ 12
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
1/31/99# 0.74+@ 1.73+@ 26
MFS Total Return 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
1/31/99# 0.81+ 2.40+ 86
</TABLE>
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of Anchor
National Life Insurance Company and First SunAmerica Life Insurance
Company. If such expenses had been included, total return would have
been lower for each period presented.
# The Portfolio changed its fiscal year ended from November 30 to January
31.
+ Annualized
@ Net of custody credits of 0.01%
++ 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 1999 1994 1995 1996 1997 1998 1999
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
-------------------------------------------- -----------------------------------------------
Cash Management Portfolio..... 0.78% 0.67% 0.62% 0.63% 0.58% 0.62% 3.65% 5.32% 4.90% 5.06% 4.97% 5.02%
Global Bond Portfolio......... 1.06 0.95 0.89 0.90 0.85 0.97 5.29 5.89 5.44 4.70 4.27 3.65
Corporate Bond Portfolio...... 1.09 0.97 0.97 0.91 0.77 0.80 5.06 5.92 6.11 6.99 6.61 6.16
High-Yield Bond Portfolio..... 0.93 0.80 0.77 0.75 0.69 0.72 11.06 10.80 9.41 9.26 9.75 9.71
Worldwide High Income
Portfolio................... 2.26 1.30 1.18 1.10 1.08 1.11 3.82 10.46 10.45 7.58 8.90 9.57
SunAmerica Balanced
Portfolio................... -- -- 1.43 1.00 0.78 0.74 -- -- 1.49 1.82 2.10 1.73
MFS Total Return Portfolio.... 6.82 1.11 0.84 0.82 0.77 0.81 (1.57) 2.95 2.74 2.63 2.43 2.40
</TABLE>
See Notes to Financial Statements
---------------------
139
<PAGE> 141
- ---------------------
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
1/31/99# 14.81 0.07 0.15 0.22
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
1/31/99# 14.46 0.08 0.03 0.11
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
1/31/99# 24.23 0.02 3.63 3.65
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
1/31/99# 16.06 0.02 0.54 0.56
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
1/31/99# 23.10 0.03 1.25 1.28
"Dogs" of Wall Street Portfolio
4/1/98-
11/30/98 10.00 0.11 (0.30) (0.19)
1/31/99# 9.81 0.02 (0.23) (0.21)
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
1/31/99# 20.21 (0.01) 3.33 3.32
MFS Growth and Income 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
1/31/99# 15.37 0.01 1.60 1.61
<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
1/31/99# -- -- 15.03 1.49 724,516
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
1/31/99# -- -- 14.57 0.76 77,323
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
1/31/99# -- -- 27.88 15.06 1,206,113
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
1/31/99# -- -- 16.62 3.49 159,176
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
1/31/99# -- -- 24.38 5.54 1,840,354
"Dogs" of Wall Street Portfolio
4/1/98-
11/30/98 -- -- 9.81 (1.90) 65,283
1/31/99# -- -- 9.60 (2.14) 78,062
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
1/31/99# -- -- 23.53 16.43 494,813
MFS Growth and Income 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
1/31/99# -- -- 16.98 10.47 266,069
<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
1/31/99# 0.66+ 2.60+ 30
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
1/31/99# 0.93+ 3.02+ 12
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
1/31/99# 0.60+ 0.55+ 16
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
1/31/99# 0.86+ 0.75+ 4
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
1/31/99# 0.77+ 0.86+ 5
"Dogs" of Wall Street Portfolio
4/1/98-
11/30/98 0.85+++ 2.04+++ 0
1/31/99# 0.85+ 0.93+ 58
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
1/31/99# 0.86+ (0.19)+ 10
MFS Growth and Income 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
1/31/99# 0.75+ 0.38+ 76
</TABLE>
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of Anchor
National Life Insurance Company and First SunAmerica Life Insurance
Company. If such expenses had been included, total return would have
been lower for each period presented.
# The Portfolio changed its fiscal year ended from November 30 to January
31.
+ 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 1999 1994 1995 1996 1997 1998 1999
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
-------------------------------------------- -------------------------------------------------
Asset Allocation
Portfolio................. 0.94% 0.81% 0.74% 0.68% 0.64% 0.66% 2.71% 3.62% 3.66% 2.88% 3.15% 2.60%
Utility Portfolio.......... -- -- 1.93 1.24 1.01 0.93 -- -- 3.53 2.96 3.04 3.02
Growth-Income Portfolio.... 0.89 0.77 0.72 0.65 0.60 0.60 1.18 1.42 1.21 0.89 0.78 0.55
Federated Value
Portfolio................. -- -- 1.57 1.03 0.83 0.86 -- -- 0.74 1.03 1.13 0.75
Venture Value Portfolio.... 3.89 1.02 0.85 0.79 0.75 0.77 1.14 1.41 1.21 0.98 0.89 0.86
"Dogs" of Wall Street
Portfolio................. -- -- -- -- 0.92 0.85 -- -- -- -- 1.97 0.93
Putnam Growth Portfolio.... 1.05 0.93 0.90 0.91 0.86 0.86 0.22 (0.05) (0.02) 0.18 0.09 (0.19)
MFS Growth and Income
Portfolio................. 0.87 0.76 0.74 0.73 0.70 0.75 1.46 1.01 0.82 0.77 0.17 0.38
</TABLE>
See Notes to Financial Statements
- ---------------------
140
<PAGE> 142
- ---------------------
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS* -- (CONTINUED)
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET NET TOTAL DIVIDENDS DIVIDENDS NET NET
ASSET INVEST- NET REALIZED FROM DECLARED FROM FROM NET ASSET ASSETS
VALUE MENT & UNREALIZED INVEST- NET REALIZED VALUE END OF
PERIOD BEGINNING INCOME GAIN (LOSS) ON MENT INVESTMENT GAIN ON END OF TOTAL PERIOD
ENDED OF PERIOD (LOSS)** INVESTMENTS OPERATIONS INCOME INVESTMENTS PERIOD RETURN*** (000'S)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Alliance Growth Portfolio
11/30/94 $10.92 $0.04 $(0.14) $(0.10) $ (0.01) $(0.17) $10.64 (0.93)% $ 53,213
11/30/95 10.64 0.07 5.08 5.15 (0.03) (0.13) 15.63 48.91 167,870
11/30/96 15.63 0.08 4.07 4.15 (0.04) (1.01) 18.73 28.05 381,367
11/30/97 18.73 0.16 4.76 4.92 (0.05) (1.04) 22.56 27.80 704,533
11/30/98 22.56 0.07 7.77 7.84 (0.06) (2.30) 28.04 35.92 1,396,140
1/31/99# 28.04 0.00 7.22 7.22 -- -- 35.26 25.75 1,864,924
Global Equities Portfolio
11/30/94 10.99 0.05 0.71 0.76 (0.01) (0.07) 11.67 6.87 136,758
11/30/95 11.67 0.12 1.64 1.76 (0.08) (0.29) 13.06 15.58 165,752
11/30/96 13.06 0.14 2.19 2.33 (0.14) (0.33) 14.92 18.21 246,482
11/30/97 14.92 0.09 1.79 1.88 (0.13) (0.69) 15.98 13.30 341,639
11/30/98 15.98 0.07 2.40 2.47 (0.19) (1.36) 16.90 15.34 420,358
1/31/99# 16.90 0.00 1.71 1.71 -- -- 18.61 10.12 463,138
International Growth and Income Portfolio
6/2/97-
11/30/97 10.00 0.03 0.38 0.41 -- -- 10.41 4.10 42,844
11/30/98 10.41 0.13 0.86 0.99 (0.03) (0.06) 11.31 9.58 128,344
1/31/99# 11.31 -- 0.40 0.40 (0.02) (0.19) 11.50 3.56 142,497
International Diversified Equities Portfolio
10/28/94-
11/30/94 10.00 0.01 (0.23) (0.22) -- -- 9.78 (2.20) 12,438
11/30/95 9.78 0.07 0.38 0.45 (0.08) -- 10.15 4.63 48,961
11/30/96 10.15 0.05 1.43 1.48 (0.26) -- 11.37 14.85 157,008
11/30/97 11.37 0.09 0.28 0.37 (0.31) (0.10) 11.33 3.52 248,927
11/30/98 11.33 0.15 1.93 2.08 (0.40) (0.15) 12.86 18.33 354,174
1/31/99# 12.86 (0.01) 0.22 0.21 -- -- 13.07 1.63 373,785
Real Estate Portfolio
6/2/97-
11/30/97 10.00 0.16 1.37 1.53 -- -- 11.53 15.30 29,565
11/30/98 11.53 0.45 (1.93) (1.48) (0.16) (0.01) 9.88 (13.04) 59,102
1/31/99# 9.88 0.09 (0.36) (0.27) -- -- 9.61 (2.73) 58,504
Aggressive Growth Portfolio
6/3/96-
11/30/96 10.00 0.02 0.34 0.36 -- -- 10.36 3.60 35,124
11/30/97 10.36 0.01 1.40 1.41 (0.01) -- 11.76 13.62 103,603
11/30/98 11.76 0.04 0.52 0.56 -- -- 12.32 4.76 133,183
1/31/99# 12.32 -- 3.20 3.20 -- -- 15.52 25.97 182,313
Emerging Markets Portfolio
6/2/97-
11/30/97 10.00 0.06 (2.03) (1.97) -- -- 8.03 (19.70) 19,979
11/30/98 8.03 0.04 (1.78) (1.74) (0.07) -- 6.22 (21.86) 31,685
1/31/99# 6.22 0.01 -- 0.01 (0.01) -- 6.22 0.20 32,708
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES TO INCOME TO
AVERAGE NET AVERAGE NET PORTFOLIO
ASSETS ASSETS TURNOVER
- ------------------------------------------------------------------------------------------
Alliance Growth Portfolio
11/30/94 0.82%++ 0.37%++ 146%
11/30/95 0.79 0.51 138
11/30/96 0.71 0.51 121
11/30/97 0.65 0.37 110
11/30/98 0.58 0.27 90
1/31/99# 0.63+ (0.01)+ 11
Global Equities Portfolio
11/30/94 1.28 0.42 67
11/30/95 1.14 1.02 106
11/30/96 1.03 1.04 70
11/30/97 0.95 0.58 115
11/30/98 0.88 0.46 92
1/31/99# 0.86+ (0.04)+ 12
International Growth and Income Portfolio
6/2/97-
11/30/97 1.60+++ 0.61+++ 19
11/30/98 1.46 1.12 51
1/31/99# 1.46+ (0.10) 10
International Diversified Equities Portfolio
10/28/94-
11/30/94 1.70+++ 1.60+++ --
11/30/95 1.70++ 0.76++ 52
11/30/96 1.59 0.47 53
11/30/97 1.35 0.82 56
11/30/98 1.26 1.18 40
1/31/99# 1.26+ (0.43)+ 7
Real Estate Portfolio
6/2/97-
11/30/97 1.25+++ 3.25+++ 7
11/30/98 0.95 4.21 26
1/31/99# 1.01+ 5.63+ 6
Aggressive Growth Portfolio
6/3/96-
11/30/96 1.05+++ 0.46+++ 47
11/30/97 0.90 (0.13) 221
11/30/98 0.83 0.32 268
1/31/99# 0.82+ 0.13+ 29
Emerging Markets Portfolio
6/2/97-
11/30/97 1.90+++ 1.33+++ 49
11/30/98 1.90++ 0.61++ 96
1/31/99# 1.90+++ 0.60+++ 22
</TABLE>
* Calculated based upon average shares outstanding
** After fee waivers and expense reimbursements by the investment adviser
*** Does not reflect expenses that apply to the separate accounts of Anchor
National Life Insurance Company and First SunAmerica Life Insurance
Company. If such expenses had been included, total return would have been
lower for each period presented.
# The Portfolio changed its fiscal year ended from November 30 to January 31.
+ 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 1999 1994 1995 1996 1997 1998 1999
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
-------------------------------------------- --------------------------------------------------
Alliance Growth
Portfolio................ 0.96% 0.79% 0.71% 0.65% 0.58% 0.63% 0.23% 0.51% 0.51% 0.37% 0.27% (0.01)%
Global Equities
Portfolio................ 1.28 1.14 1.03 0.95 0.88 0.86 0.42 1.02 1.04 0.58 0.46 (0.04)
International Growth and
Income Portfolio......... -- -- -- 2.02 1.46 1.46 -- -- -- 0.19 1.12 (0.10)
International Diversified
Equities Portfolio....... 3.50 2.09 1.59 1.35 1.26 1.26 (0.20) 0.37 0.47 0.82 1.18 (0.43)
Real Estate Portfolio..... -- -- -- 1.36 0.95 1.01 -- -- -- 3.14 4.21 5.63
Aggressive Growth
Portfolio................ -- -- 1.09 0.90 0.83 0.82 -- -- 0.42 (0.13) 0.32 0.13
Emerging Markets
Portfolio................ -- -- -- 2.60 2.01 2.29 -- -- -- 0.63 0.50 0.21
</TABLE>
See Notes to Financial Statements
---------------------
141
<PAGE> 143
- ---------------------
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, MFS Total Return Portfolio
(formerly Balanced/Phoenix Investment Counsel Portfolio), Asset Allocation
Portfolio, Utility Portfolio, Growth-Income Portfolio, Federated Value
Portfolio, Venture Value Portfolio, Alliance Growth Portfolio, MFS Growth and
Income Portfolio (formerly 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 twenty-two 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 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 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
- ---------------------
142
<PAGE> 144
- ---------------------
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 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 Portfolios
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>
International Growth and Income Portfolio......... $0.21 $0.02 $0.14 $0.05 --%
Emerging Markets Portfolio........................ 0.01 0.01 -- -- --
</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 two months
ended January 31, 1999 were $15,677 and $73,202 respectively. The gross foreign
source income for information reporting is $211,791 and $84,598 respectively.
---------------------
143
<PAGE> 145
- ---------------------
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 Portfolios 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 approve a new investment advisory and management agreement between
SunAmerica Series Trust, on behalf of each Portfolio thereof and SunAmerica
Asset Management Corp. ("SAAMCo"), the terms of which are identical in all
material respects to the existing investment and management agreement. (All
Portfolios except the Balanced/Phoenix Investment Counsel and Growth/Phoenix
Investment Counsel Portfolios).
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
-------- ------- ---------
<S> <C> <C>
424,927,098 5,782,266 18,314,106
</TABLE>
3. To approve a new subadvisory agreement, the terms of which are identical in
all material respects to the existing subadvisory agreement with respect to each
Portfolio between:
(a) SAAMCo and Alliance Capital Management L.P. ("Alliance") ( Global
Equities, Alliance Growth and Growth-Income Portfolios only).
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
-------- ------- ---------
<S> <C> <C>
423,093,036 5,818,096 20,112,338
</TABLE>
(b) SAAMCo and Davis Selected Advisers, L.P. (Venture and Real Estate
Portfolios only).
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
-------- ------- ---------
<S> <C> <C>
421,473,440 6,229,405 21,320,630
</TABLE>
(c) SAAMCo and Federated Investment Counseling (Corporate Bond, Federated
Value and Utility Portfolios only).
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
-------- ------- ---------
<S> <C> <C>
421,225,839 6,030,429 21,767,195
</TABLE>
(d) SAAMCo and Goldman Sachs Asset Management (Asset Allocation Portfolio
only).
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
-------- ------- ---------
<S> <C> <C>
421,510,688 5,923,738 21,589,044
</TABLE>
(e) SAAMCo and Goldman Sachs Asset Management (Global Bond Portfolio only).
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
-------- ------- ---------
<S> <C> <C>
421,161,039 6,235,295 21,627,128
</TABLE>
- ---------------------
144
<PAGE> 146
(f) SAAMCo and Morgan Stanley Asset Management, Inc. (International
Diversified Equities and High Income Portfolios only).
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
-------- ------- ---------
<S> <C> <C>
421,278,920 6,130,956 21,613,594
</TABLE>
(g) SAAMCo and Putnam Investment Management, Inc. (Putnam Growth,
International Growth and Income and Emerging Market Portfolios only).
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
-------- ------- ---------
<S> <C> <C>
421,981,383 6,046,769 20,995,310
</TABLE>
4. To approve (a) and amendment to the investment advisory and management
agreement between the Trust and SAAMCo in order to revise the breakpoints in the
fees the Alliance Growth Portfolio pays to SAAMCo and (b) and amendment to the
subadvisory agreement between SAAMCo and Alliance in order to revise the
breakpoints in the subadvisory fee SAAMCo pays to Alliance (Alliance Growth
Portfolio only).
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
-------- ------- ---------
<S> <C> <C>
417,585,490 9,820,141 21,617,833
</TABLE>
5. To approve (a) a new investment advisory and management agreement between
the Trust and SAAMCo the terms of which are identical in all material respects
to the existing investment advisory and management agreement with SAAMCo except
with respect to revised breakpoints in the advisory fees the Growth/Phoenix
Investment Counsel and Balanced/Phoenix Investment Counsel Portfolios pay to
SAAMCo, and (b) a new subadvisory agreement between SAAMCo and Massachusetts
Financial Services Company, the proposed new subadviser for each of the
Growth/Phoenix Investment Counsel and Balanced/Phoenix Investment Counsel
Portfolios (Growth/Phoenix Investment Counsel and Balanced/Phoenix Investment
Counsel Portfolios only).
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
-------- ------- ---------
<S> <C> <C>
417,899,690 8,710,954 22,412,827
</TABLE>
6. To approve changing the fundamental investment restriction relating to:
(a) the ability to engage in borrowing transactions.
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
-------- ------- ---------
<S> <C> <C>
406,938,120 17,843,138 24,242,219
</TABLE>
(b) the ability to engage in lending transactions.
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
FAVOR OF AGAINST ABSTAINED
-------- ------- ---------
<S> <C> <C>
407,614,059 17,565,946 23,843,477
</TABLE>
7. 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>
---------------------
145
<PAGE> 147
- ---------------------
COMPARISONS: PORTFOLIOS VS. INDEXES
The following graphs compare the performance of a $10,000
investment in the presented 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
The two-month period ended January 31, 1999, showed continued
strength in the U.S. economy. Nonfarm payrolls rose by 245,000 and
378,000 during December and January, respectively, while the
unemployment rate fell to a 29-year low of 4.3%. As expected, due
to the strength of the economy, the Federal Reserve policymakers
left the Federal Funds rate unchanged at 4.75%.
The Cash Management Portfolio performed below average during the
period. This is a reflection of the volatility of net assets over
the past several months. This volatility has caused us to keep the
average maturity slightly shorter than the Donaghue average of
approximately 55 days. The shorter duration led to the
underperformance.
With the economy continuing to derive substantial support from a
resilient stock market and rapid monetary growth, the chances of
the Fed easing anytime soon appear increasingly remote.
Conversely, the combination of rising productivity and continued
low inflation should keep the Fed from shifting to a tightening
bias. We expect the Federal Reserve to hold short-term rates
steady at 4.75%. We will continue to search for the best relative
valued securities and will structure the Portfolio to be flexible
for any changes in our economic outlook.
Past performance is no guarantee of future results.
- ---------------------
146
<PAGE> 148
GOLDMAN SACHS ASSET MANAGEMENT INTERNATIONAL
[Global Bond Portfolio Line Graph]
<TABLE>
<CAPTION>
J.P. MORGAN GLOBAL GOV'T BOND
GLOBAL BOND PORTFOLIO 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
14316 15495
14364 15558
5/31/98 14716 15934
15140 16519
11/30/98 15604 17021
1/31/99 15843 17193
</TABLE>
- -----------------------------------------------------
GLOBAL BOND PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99
- -----------------------------------------------------
1-year 10.67%
5-year 8.49%
Since Inception (7/1/93) 8.58%
- -----------------------------------------------------
(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 1.53% for the two-month period
ended January 31, 1999, outperforming its benchmark, the J.P.
Morgan Global Government Bond Index, which returned 1.01%. Much of
the Portfolio's performance can be attributed to its focus on
securities of high credit quality, which were well rewarded by the
financial markets during the period. Additionally, the recent
market environment provided a positive backdrop for global bonds,
as the market focused on interest rate cuts in peripheral European
markets, global economic weakness, and low inflation.
The Portfolio profited primarily from its positions in Europe as
the European bond markets rallied in response to interest rate
cuts in Sweden, Denmark, the U.K., and the eleven European
Monetary Union (EMU 11) central banks. In December, investment
professional surveys conducted in France, Germany, and the U.K.
further indicated falling business confidence in major core
European economies, pointing to an economic slowdown.
In Europe, we maintain an overweighted position to take advantage
of ongoing strength in the European bond markets. We have added
long positions in the Australian, New Zealand, and Norwegian
markets following an increase in spreads in these countries, and
we have also added to the Portfolio's exposure to Treasury
Inflation Protection Securities (TIPS) in the U.S., which we feel
are undervalued by the market. In Japan, we will continue to
maintain an underweighted position in light of increased prospects
for volatility in that country.
Past performance is no guarantee of future results.
---------------------
147
<PAGE> 149
FEDERATED INVESTORS
[Corporate Bond Portfolio]
<TABLE>
<CAPTION>
LEHMAN BROTHERS
CORPORATE BOND LEHMAN BROTHERS CORPORATE BOND LIPPER CORPORATE
PORTFOLIO AGGREGATE INDEX (1) INDEX (2) BBB RATED INDEX (3)
-------------- ------------------- --------------- -------------------
<S> <C> <C> <C> <C>
7/1/93 10000 10000 10000 10000
10200 10231 10323 10341
11/30/93 10190 10209 10271 10351
10180 10222 10284 10368
5/31/94 9843 9888 9836 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
13716 13590 13979 13681
13692 13582 13974 13676
5/31/98 13962 13829 14283 13922
14046 14204 14443 13982
11/30/98 14288 14541 14957 14346
1/31/99 14481 14689 15149 14494
</TABLE>
- -----------------------------------------------------
CORPORATE BOND PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99
- -----------------------------------------------------
1-year 5.58%
5-year 6.91%
Since Inception (7/1/93) 6.85%
- -----------------------------------------------------
(1)The Lehman Brothers Aggregate Index combines several Lehman Brothers
fixed-income indices to give a broad view of the bond market--70% reflects the
Government/Corporate Bond Index, 29% reflects the Mortgage-Backed Securities
Index and 1% reflects the Asset-Backed Securities Index.
(2)The Lehman Brothers Corporate Bond Index includes all publicly issued, fixed
rate, nonconvertible investment grade, dollar-denominated, SEC-registered
corporate debt.
(3)The Lipper Corporate BBB Rated Index is an average of variable annuity
accounts that include at least 65% of assets in corporate and government debt
issues in the top four grades.
For the two-month period ended January 31, 1999, the Corporate
Bond Portfolio's 1.35% return outperformed the Lehman Brothers
Aggregate Index return of 1.02%, the Lehman Brothers Corporate
Bond Index return of 1.28%, and the Lipper Corporate BBB Rated
Index return of 1.03%.
Interest rate levels did not change significantly during the
period. Intermediate maturities (two to five years) saw rates rise
approximately five basis points, while 10-year rates fell seven
basis points, flattening the yield curve somewhat. Economic
releases over the two months were certainly stronger than
expectations, providing support to the fixed income spread
sectors. Within spread sectors, corporate bonds -- both investment
grade and high yield -- significantly outperformed comparable
maturity Treasury securities as yield spreads continued to tighten
from the excessively wide levels reached in the fall of 1998.
Within the Corporate Bond Portfolio, a gradual composition shift
has been underway toward a slightly shorter average maturity and a
higher yielding/lower quality posture. Given sustained economic
activity in a relatively modest inflation environment, it appears
that spread sectors may be in a position to continue
outperforming. For this reason, the high-yield bond position is
being slightly increased with a slight decrease in duration.
Past performance is no guarantee of future results.
- ---------------------
148
<PAGE> 150
SUNAMERICA ASSET MANAGEMENT CORP.
[High-Yield Bond Portfolio]
<TABLE>
<CAPTION>
MERRILL LYNCH HIGH-YIELD MASTER
HIGH-YIELD BOND PORTFOLIO 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
16337 17535
16524 17607
5/31/98 16924 17969
15960 17379
11/30/98 15577 17907
1/31/99 15804 18088
</TABLE>
- -----------------------------------------------------
HIGH-YIELD BOND PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99
- -----------------------------------------------------
1-year -3.26%
5-year 6.43%
Since Inception (2/9/93) 7.96%
- -----------------------------------------------------
(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.
There were no major changes in the High-Yield Bond Portfolio over
the two-month period ended January 31, 1999. The Portfolio's total
return over the period was 1.46%, outperforming the Merrill Lynch
High-Yield Master Index return of 1.01%.
Most of this return was achieved in January as the high-yield
market began the year on a strong note. Several of the Portfolio's
top ten holdings benefited from major credit-enhancing
transactions over the period. Microsoft made equity investments in
both NTL Inc. and United International Holdings during January,
and Southwestern Bell agreed to acquire Comcast Cellular, which
moved Comcast's bonds up to investment grade.
The average credit rating of the Portfolio remained steady within
the B-B1 range, and we expect this to continue throughout 1999. We
benefited over the period from an underweighted position in energy
and healthcare as both these sectors drastically underperformed.
Given the importance of these sectors, we are actively looking to
add to our positions at attractive valuations.
Past performance is no guarantee of future results.
---------------------
149
<PAGE> 151
MORGAN STANLEY ASSET MANAGEMENT INC.
[Worldwide High Income Portfolio]
<TABLE>
<CAPTION>
WORLD WIDE HIGH FIRST BOSTON HIGH JP MORGAN EMBI
INCOME PORTFOLIO YIELD INDEX(2) PLUS(3) BLENDED INDEX(1)
---------------- ----------------- -------------- ----------------
<S> <C> <C> <C> <C>
10/28/94 10000 10000 10000 10000
9856 10342 8574 9434
5/31/95 10775 10992 10110 10576
11190 11268 10574 10952
11/30/95 11544 11576 11164 11420
12265 12011 12176 12152
5/31/96 12802 12141 13360 12803
13417 12409 14638 13551
11/30/96 14645 12927 16487 14684
15467 13525 17581 15513
5/31/97 16024 13763 18170 15912
17114 14323 19299 16681
11/30/97 16721 14709 18745 16689
17279 15095 19406 17205
17671 15213 19683 17464
5/31/98 17760 15450 19779 17577
12492 14532 14552 14717
11/30/98 14423 14963 17766 16527
1/31/99 14157 15069 16338 15914
</TABLE>
- -----------------------------------------------------
WORLDWIDE HIGH INCOME PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99
- -----------------------------------------------------
1-year -18.07%
Since Inception (10/28/94) 8.50%
- -----------------------------------------------------
(1)The Blended Index combines 50% of the First Boston High-Yield Index and 50%
of the J.P. Morgan Emerging Markets Bond Index Plus.
(2)The First Boston High-Yield Bond Index is a trader-priced portfolio
constructed to mirror the public high-yield debt market. Securities in the
index are rated B or lower.
(3)The J.P. Morgan Emerging Markets Bond Index (EMBI) Plus is a market-weighted
index composed of all Brady Bonds outstanding; it includes Argentina, Brazil,
Mexico, Nigeria, the Philippines, and Venezuela.
For the two-month period ended January 31, 1999, the Worldwide
High Income Portfolio returned -1.84%, above the -3.71% return for
the benchmark, a blend of 50% First Boston High-Yield Index and
50% J.P. Morgan Emerging Markets Bond Index Plus. The Portfolio's
performance was adversely affected by an overweighting in emerging
markets debt versus high-yield debt, but outperformance within the
two asset classes overcame the adverse effects of the asset
allocation decision.
Within the emerging markets debt portion of the Portfolio,
performance was enhanced by an underweighting in Brazilian and
Venezuelan assets. In addition, overweighted positions in smaller
countries that require little external financing aided
performance.
Within the high-yield portion of the Portfolio, performance
benefited from favorable mergers and acquisitions activity both in
the U.S. and Europe. Additionally, an overweighted position in the
telecommunications industry continued to aid performance.
The Portfolio also benefited from being positioned with a shorter
interest rate duration than the benchmark as U.S. interest rates
rose over the two-month period.
Past performance is no guarantee of future results.
- ---------------------
150
<PAGE> 152
SUNAMERICA ASSET MANAGEMENT CORP.
[SunAmerica Balanced Portfolio]
<TABLE>
<CAPTION>
SUNAMERICA LEHMAN BROTHERS
BALANCED PORTFOLIO BLENDED INDEX(1) S&P 500 INDEX(2) AGGREGATE INDEX(3)
------------------ ---------------- ---------------- ------------------
<S> <C> <C> <C> <C>
6/3/96 10000 10000 10000 10000
8/31/96 9880 9954 9797 10144
11/30/96 11130 11076 11438 10730
2/28/97 11650 11380 12005 10690
5/31/97 12003 11939 12942 10833
8/31/97 12928 12515 13780 11162
11/30/97 13521 13146 14701 11544
13823 13468 15120 11810
2/28/98 14577 14005 16210 11881
5/31/98 15173 14452 16916 12016
8/31/98 13927 13671 14897 12341
11/30/98 16200 15419 18180 12634
1/31/99 17892 16342 20031 12762
</TABLE>
- -----------------------------------------------------
SUNAMERICA BALANCED PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99
- -----------------------------------------------------
1-year 29.44%
Since Inception (6/3/96) 24.39%
- -----------------------------------------------------
(1)The Blended Index consists of 55% S&P 500 Index, 35% Lehman Brothers
Aggregate Index, and 10% Treasury Bills. Treasury Bills are short-term
securities with maturities of one-year or less issued by the U.S. Government.
(2)The S&P 500 Index tracks the performance of 500 stocks representing a
sampling of the largest foreign and domestic stocks traded publicly in the
United States. Because it is market-weighted, the index will reflect changes in
larger companies more heavily than those in smaller companies.
(3)The Lehman Brothers Aggregate Index combines several Lehman Brothers
fixed-income indices to give a broad view of the bond market--70% reflects the
Government/Corporate Bond Index, 29% reflects the Mortgage-Backed Securities
Index and 1% reflects the Asset-Backed Securities Index.
The SunAmerica Balanced Portfolio continued its outperformance
during the two-month period ended January 31, 1999. For the two
months, the Portfolio was up 10.44%, well ahead of the blended
benchmark (55% S&P 500, 35% Lehman Brothers Aggregate Index, and
10% Treasury bills), which returned 5.99%.
The Portfolio continues to benefit from our investment theme of
quality and growth. During the period, we increased our exposure
to select healthcare and technology positions. As we look to the
remainder of 1999, our strategy is to continue to find companies
with above-average revenue and earnings growth. Recently we have
been increasing our weighting in the telecommunications and media
sectors as we believe these two industries will benefit from
synergistic opportunities in 1999. We also continue to follow the
strength of the U.S. consumer -- a strong contributor to the
economy during the fourth quarter -- and have increased our
financial weighting in companies with strong earnings from credit
card exposure.
We continue to believe that we remain in a moderate growth, low
inflationary environment. A solid economic backdrop, liquidity,
and moderate corporate earnings growth will continue to be the
driving force of the market and higher prices are ahead.
Volatility, however, will continue. The dynamics of this period
continue to change, but the basic underpinnings of this market
remain intact.
The top five equity holdings in the Portfolio at the end of the
January were Microsoft Corp., Intel Corp., International Business
Machines Corp., AT&T Corp., and Cisco Systems Inc.
Past performance is no guarantee of future results.
---------------------
151
<PAGE> 153
MFS INVESTMENT MANAGEMENT
[MFS Total Return Portfolio]
<TABLE>
<CAPTION>
MFS TOTAL RETURN LEHMAN BROTHERS
PORTFOLIO BLENDED INDEX(1) AGGREGATE INDEX (2) S&P 500 INDEX (3)
---------------- ---------------- ------------------- -----------------
<S> <C> <C> <C> <C>
10/28/94 10000 10000 10000 10000
10509 10422 10490 10423
5/31/95 11112 11239 11116 11489
11755 11692 11307 12176
11/30/95 12539 12403 11739 13199
12965 12863 11773 14041
5/31/96 13059 13171 11602 14755
12776 13110 11769 14455
11/30/96 14262 14588 12449 16877
14409 14968 12403 17714
5/31/97 14874 15724 12568 19096
15543 16483 12950 20333
11/30/97 16191 17315 13394 21691
16411 17740 13702 22309
17069 18446 13691 23918
5/31/98 17658 19035 13940 24950
16196 18006 14316 21982
11/30/98 18384 20308 14659 26825
1/31/99 19465 21524 14807 29556
</TABLE>
- -----------------------------------------------------
MFS TOTAL RETURN PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99
- -----------------------------------------------------
1-year 18.61%
Since Inception (10/28/94) 16.91%
- -----------------------------------------------------
(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.
For the two months ended January 31, 1999, the MFS Total Return
Portfolio gained 5.88% -- a return comparable to the blended
benchmark (55% S&P 500, 35% Lehman Brothers Aggregate Bond Index,
and 10% Treasury bills), which advanced 5.99%.
The primary objective of the Portfolio is to seek above-average
income (compared to a Portfolio invested entirely in equity
securities) consistent with the prudent employment of capital and
secondarily to provide reasonable opportunity for growth of
capital and income.
As was the case in 1998, growth stocks outperformed value stocks
during the period. We believe, however, that valuations are too
rich in many of the growth sectors and are patiently awaiting
value to be recognized in sectors other than technology.
As we look forward to 1999, we will seek to add to our equity
positions when valuations become more reasonable. We will maintain
our discipline in an effort to produce consistent returns with low
volatility.
Past performance is no guarantee of future results.
- ---------------------
152
<PAGE> 154
GOLDMAN SACHS ASSET MANAGEMENT
[Asset Allocation Portfolio]
<TABLE>
<CAPTION>
ASSET ALLOCATION LEHMAN BROTHERS
PORTFOLIO BLENDED INDEX(1) AGGREGATE INDEX(2) S&P 500 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
19447 18916 13593 23377
20490 19729 13582 25062
5/31/98 20584 20394 13829 26154
18007 19174 14204 23033
11/30/98 19769 21840 14541 28108
1/31/99 20063 23253 14689 30970
</TABLE>
- --------------------------------------------------------------------
ASSET ALLOCATION PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99
- --------------------------------------------------------------------
1-year 3.17%
5-year 13.19%
Since Inception (7/1/93) 13.27%
- -------------------------------------------------------------------
(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 1.49% during the reporting
period, underperforming its blended benchmark of the S&P 500 Index
(60%) and the Lehman Brothers Aggregate Index (40%), which
returned 6.47%. The Portfolio's underperformance stemmed primarily
from the equity portion of the Portfolio's value discipline.
Our value discipline has allowed us to exploit market anomalies
and invest in companies that sell at a substantial discount to the
market and to their respective industries. However, during the
two-month reporting period, growth-oriented stocks outperformed
their value-oriented counterparts, with the S&P 500/BARRA Growth
Index returning 14.15% -- nearly ten percentage points higher than
the S&P 500/BARRA Value Index return of 5.48%. We continue to
believe that when, over the course of a multi-year investment
horizon, short-term issues are resolved, cycles turn, or corporate
actions become evident -- and acknowledged by the broader Wall
Street community -- our value investments will generate solid
returns for our shareholders.
As of January 31, 1999, the allocation of the Portfolio stood at
an overweighted position in stocks at 60%, an underweighted
position in bonds at 30%, and a 10% allocation to cash and cash
equivalents. The overall allocation of the Portfolio is more
aggressive than was the allocation at the beginning of the
reporting period, which stood at 53% for stocks, 32% for bonds and
15% for cash and cash equivalents.
Past performance is no guarantee of future results.
---------------------
153
<PAGE> 155
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
13510 15120 15613
2/28/98 13772 16210 16054
5/31/98 14156 16916 16768
8/31/98 13476 14897 16421
11/30/98 15118 18180 19742
1/31/99 15233 20031 23039
</TABLE>
- --------------------------------------------------------------------
UTILITY PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99
- --------------------------------------------------------------------
1-year 12.75%
Since Inception (6/3/96) 17.10%
- -------------------------------------------------------------------
(1)The S&P 500 Index tracks the performance of 500 stocks representing a
sampling of the largest foreign and domestic stocks traded publicly in the
United States. Because it is market-weighted, the index will reflect changes in
larger companies more heavily than those in smaller companies.
(2)The Blended Index is comprised of 35% S&P Utility Index and 65% for the S&P
Communications Service Index, on a market capitalization weighted basis. the
S&P Utility Index is presently comprised of 40 stocks from the electric and
natural gas industries. The S&P Communications Service Index is comprised of
the companies listed in the telecommunications sectors of the S&P 400, 500, and
600. Created in July of 1996, the S&P Communications Service Index includes
cellular and wireless service providers including pagers, long distance
providers and the telephone group companies (local service providers).
The stock market rebounded sharply during the two-month period
ended January 31, 1999, with the S&P 500 returning 10.18%. The
market environment appeared to become speculative, with a mania
over Internet stocks -- an environment in which a conservative,
value-oriented fund like the Utility Portfolio will naturally
trail. The Portfolio returned 0.76% during the period.
By sector, the S&P Electric Index fell 2.8%, Natural Gas rose
5.2%, and Communications rose 23.1%. Our current strategy is to
emphasize 1) companies that generate strong cash flow above their
capital spending and dividend requirements and 2) stocks with high
dividend yields. Our favorite sectors are electric and gas
utilities and Real Estate Investment Trusts (REITs).
Cash flow at electric companies is at record levels, and many
companies are repurchasing their own stock. Industry deregulation
is leading to consolidation and takeovers. Natural gas companies
have irreplaceable assets, with gas demand rising and supply
constrained. Telecommunications stocks have benefited from surging
demand for high-margin services (such as voice mail and caller
identification features) and growth in Internet usage, but we are
concerned about the sharp run-up in these stocks and their
historically high valuations.
Among non-utilities, REITs (7% of the Portfolio) seem
exceptionally attractive. They trailed the S&P 500 return by 45%
in 1998 and are extremely undervalued.
Past performance is no guarantee of future results.
- ---------------------
154
<PAGE> 156
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
23685 24686
25566 26466
5/31/98 26676 27618
22910 24323
11/30/98 28078 29683
1/31/99 32308 32705
</TABLE>
- --------------------------------------------------------------------
GROWTH-INCOME PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99
- --------------------------------------------------------------------
1-year 36.41%
5-year 23.87%
Since Inception (2/9/93) 21.67%
- -------------------------------------------------------------------
(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 posted a 15.06% gain for the two-month
period ended January 31, 1999, outdistancing the S&P 500's 10.18%
return.
The outperformance was due to an overweighting in the technology
sector and to strong stock selection in technology (Dell Computer,
Microsoft, Cisco Systems), in healthcare (Pfizer, Genzyme), in
consumer services (Telecommunications TCI, Carnival Corp.), in
financials (Citigroup, Chase Manhattan, Morgan Stanley Dean
Witter), and in retail (Kohls).
Sector weightings did not change dramatically during the period,
with the largest exposures in technology (26.8%), finance (16.6%),
consumer services (12.1%), and consumer staples (9.0%).
The top ten holdings as of January 31 were: Microsoft (4.9%),
General Electric (3.9%), Cisco Systems (2.8%), Intel (2.7%),
Walmart (2.7%), Dell Computer (2.7%), Citigroup (2.5%), Pfizer
(2.4%), Bristol Myers Squibb (2.3%), and Bank America (2.2%).
Past performance is no guarantee of future results.
---------------------
155
<PAGE> 157
FEDERAL INVESTORS
[Federated Value Portfolio]
<TABLE>
<CAPTION>
FEDERATED VALUE PORTFOLIO S&P 500 INDEX (1)
------------------------- -----------------
<S> <C> <C>
6/3/96 10000.00 10000.00
8/31/96 9620.00 9797.00
11/30/96 11080.00 11438.00
2/28/97 11540.00 12005.00
5/31/97 12369.00 12942.00
8/31/97 13141.00 13780.00
11/30/97 13933.00 14701.00
14193.00 15120.00
2/28/98 15186.00 16210.00
5/31/98 16164.00 16916.00
8/31/98 13590.00 14697.00
11/30/98 16472.00 18180.00
1/31/99 17046.00 20031.00
</TABLE>
- --------------------------------------------------------------------
FEDERATED VALUE PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99
- --------------------------------------------------------------------
1-year 20.10%
Since Inception (6/3/96) 22.15%
- -------------------------------------------------------------------
(1)The S&P 500 Index tracks the performance of 500 stocks representing a
sampling of the largest foreign and domestic stocks traded publicly in the
United States. Because it is market-weighted, the index will reflect changes in
larger companies more heavily than those in smaller companies.
For the two-month period ended January 31, 1999, the Federated
Value Portfolio provided a total return of 3.49% versus 10.18% for
the S&P 500 benchmark. The two-month period was narrow in terms of
market participation as returns were dominated by technology (up
33%) and communications services (up 23%). The average stock in
the S&P 500, as measured by the equal-weighted S&P 500, returned
only 3.65%. Value stocks struggled for the period, as witnessed by
the Russell 1000 Value Index's 4.23% return.
The Portfolio's performance was negatively impacted by our
significant underweightings in both technology and communication
services stocks. The Portfolio was also negatively impacted by our
overweighted positions in the poorly performing basic materials
and energy sectors. The top five stocks adding to performance for
the period were Sun Microsystems, Inc., First Data Corp.,
Electronic Data Systems Corp., AT&T Corp., and Oxford Health
Plans, Inc. The bottom five in terms of detracting from
performance were Toys "R" Us, Philip Morris Cos., Inc.,
Archer-Daniels-Midland Co., Boeing Co., and Dillards, Inc.
As we begin 1999, the markets are faced with numerous challenges.
At a P/E ratio nearing 30 times, a price-to-book above eight times
and a dividend yield of 1.3%, the S&P 500 is in uncharted
valuation territory for this point in any business cycle. Indeed,
it appears that speculation has worked its way into the market. In
this type of environment, we believe that our value
disciplines -- identifying leading companies which are temporarily
out of favor and appear inexpensive relative to the market as well
as to their expected growth -- will provide a more reasonable ride
as rationality works its way back into the market.
Past performance is no guarantee of future results.
- ---------------------
156
<PAGE> 158
DAVIS SELECTED ADVISERS, L.P.
[Venture Value Portfolio]
<TABLE>
<CAPTION>
VENTURE VALUE PORTFOLIO S&P 500 INDEX(1)
----------------------- ----------------
<S> <C> <C>
10/28/94 10000.00 10000.00
10684.00 10423.00
5/31/95 11678.00 11489.00
12952.00 12176.00
11/30/95 13514.00 13199.00
14113.00 14041.00
5/31/96 14623.00 14755.00
14572.00 14455.00
11/30/96 17221.00 16877.00
18148.00 17714.00
5/31/97 19369.00 19096.00
21344.00 20330.00
11/30/97 22322.00 21691.00
22457.00 22309.00
23912.00 23918.00
5/31/98 24577.00 24959.00
20499.00 21982.00
11/30/98 24857.00 26825.00
1/31/99 26234.00 29556.00
</TABLE>
- --------------------------------------------------------------------
VENTURE VALUE PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99
- --------------------------------------------------------------------
1-year 16.82%
Since Inception (10/28/94) 25.39%
- -------------------------------------------------------------------
(1)The S&P 500 Index tracks the performance of 500 stocks representing a
sampling of the largest foreign and domestic stocks traded publicly in the
United States. Because it is market-weighted, the index will reflect changes in
larger companies more heavily than those in smaller companies.
The Venture Value Portfolio delivered a total return of 5.54% for
the two months ended January 31, 1999, compared to the S&P 500
benchmark return of 10.18%, an underperformance reflecting the
market's bias for growth-oriented stocks during the period.
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. We
believe the recent market declines -- however painful -- represent
opportunities to buy our favorite stocks at much better prices. We
continue to take advantage of market downturns by upgrading the
quality of the Portfolio and sticking with large weightings in our
favorite companies that are selling at well-below-market multiples
despite their strong prospects for long-term earnings growth.
The major industries in which the Venture Value Portfolio invests
are financials, technology, and consumer products. Hewlett
Packard, American Express, Wells Fargo & Company, and McDonald's
are among the top holdings. We have added to one of the
Portfolio's top holdings -- American Express -- throughout the
year, particularly when the stock came under short-term pressure.
We expect this financial growth company, with a brand recognized
worldwide, to benefit from the long-term trend of Baby Boomers
saving for retirement. Although American Express benefits from the
U.S.
consumer's propensity to pay with plastic, it makes its money from
membership fees and transaction charges rather than through risky
lending.
Hewlett Packard is the largest technology holding in the
Portfolio. Hewlett Packard allows us to participate in the growth
of the technology sector through a dominant industry leader that
has diversified lines of business but does not possess the high
P/E risk of today's "go-go" growth stocks.
Past performance is no guarantee of future results.
---------------------
157
<PAGE> 159
SUNAMERICA ASSET MANAGEMENT CORP.
[DOGS OF WALL STREET PORTFOLIO PERFORMANCE GRAPH]
<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
12/31/98 9940 11284
1/31/99 9600 11755
</TABLE>
- --------------------------------------------------------------------
"DOGS" OF WALL STREET PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99*
- --------------------------------------------------------------------
Since Inception (4/1/98) -4.00%
- -------------------------------------------------------------------
(1)The S&P 500 Index tracks the performance of 500 stocks representing a
sampling of the largest foreign and domestic stocks traded publicly in the
United States. Because it is market-weighted, the index will reflect changes in
larger companies more heavily than those in smaller companies.
For the two-month period ended January 31, 1999, the "Dogs" of
Wall Street Portfolio had a total return of -2.14%,
underperforming the S&P 500 benchmark return of 10.18%. The
Portfolio's emphasis on value-style stocks -- which were
outperformed by growth -- accounted for much of the difference.
Value investing continues to be a challenge in the current market
environment. In fact, at the end of January 1999, the 50 largest
stocks in the S&P 500 by capitalization had an average multiple of
29 and accounted for 55% of the total capitalization of the index.
The remaining 450 had an average multiple of 20 and accounted for
45% of the index's total capitalization.
We continue to believe that value names are an excellent way to
invest and that the fundamentals for many of these companies are
strong and improving. The Portfolio's top holdings as of the end
of January 1999 were General Motors Corp., Kellogg Co., Cooper
Tire & Rubber Inc., ALLTEL Corp., and Minnesota Mining &
Manufacturing Co.
Past performance is no guarantee of future results.
- ---------------------
158
<PAGE> 160
PUTNAM INVESTMENTS
[PUTNAM GROWTH PORTFOLIO]
<TABLE>
<CAPTION>
RUSSELL 1000 GROWTH
PUTNAM GROWTH PORTFOLIO INDEX(1) S&P 500 INDEX(2)
----------------------- ------------------- ----------------
<S> <C> <C> <C>
2/9/93 10000.00 10000.00 10000.00
9910.00 9830.00 9915.00
5/31/93 9810.00 9956.00 10144.00
10190.00 10085.00 10517.00
11/30/93 10040.00 10220.00 10551.00
10480.00 10443.00 10743.00
5/31/94 10039.00 10137.00 10576.00
10499.00 10742.00 11092.00
11/30/94 10059.00 10497.00 10663.00
10399.00 11358.00 11533.00
5/31/95 11227.00 12363.00 12713.00
12721.00 13389.00 13473.00
11/30/95 13143.00 14561.00 14606.00
13323.00 15410.00 15537.00
5/31/96 14236.00 16388.00 16327.00
13614.00 15848.00 15995.00
11/30/96 15761.00 18388.00 18675.00
16143.00 19161.00 19601.00
5/31/97 16926.00 20723.00 21130.00
18358.00 22085.00 22500.00
11/30/97 19862.00 23262.00 24002.00
20307.00 24226.00 24688.00
21967.00 26048.00 26466.00
5/31/98 22969.00 26681.00 27618.00
20223.00 23905.00 24323.00
11/30/98 24343.00 29927.00 29683.00
1/31/99 28341.00 34542.00 32705.00
</TABLE>
- --------------------------------------------------------------------
PUTNAM GROWTH PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99
- --------------------------------------------------------------------
1-year 39.56%
5-year 21.67%
Since Inception (2/9/93) 19.04%
- -------------------------------------------------------------------
(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 two months ended January 31, 1999, the Putnam Growth
Portfolio gained 16.43%, outperforming the S&P 500 Index return of
10.18%, as well as the Russell 1000 Growth Index return of 15.42%.
During the period, we witnessed a continuation of the overall
five-year trend of large-company stocks outperforming
small-company stocks and growth stocks outperforming value.
During the period, the Portfolio benefited from an overweighting
in the top-performing technology and consumer cyclical sectors as
well as from solid stock selection in consumer cyclicals and
capital goods. It also benefited from an underweighting in the two
worst performers: energy and basic industrials. While the
Portfolio outperformed the index for both months, January's
performance was hindered by an overweighting in the lagging
healthcare sector and by weak stock selection in healthcare and
financials.
Looking ahead, the Portfolio remains overweighted in consumer
stocks (primarily retail) and in selected technology and
healthcare areas. Sectors in which earnings growth is less evident
and in which the Portfolio is underweighted include energy, basic
industry, and utilities. Given the unsettled nature of the global
economy, the market will likely remain volatile going forward.
However, low inflation and recent declines in interest rates may
serve as the foundation for domestic stability, helping to
maintain investor confidence and nurture growth. In this
environment, we are maintaining our disciplined approach to stock
selection, which we believe will result in superior returns over
time.
Past performance is no guarantee of future results.
---------------------
159
<PAGE> 161
MFS INVESTMENT MANAGEMENT
[MFS GROWTH AND INCOME PORTFOLIO]
<TABLE>
<CAPTION>
MFS GROWTH AND INCOME S&P 500 INDEX(1)
--------------------- ----------------
<S> <C> <C>
2/9/93 10000.00 10000.00
9970.00 9915.00
5/31/93 10420.00 10144.00
10550.00 10517.00
11/30/93 10780.00 10551.00
11210.00 10743.00
5/31/94 10437.00 10576.00
10477.00 11092.00
11/30/94 10065.00 10663.00
10537.00 11533.00
5/31/95 11433.00 12713.00
12594.00 13473.00
11/30/95 13378.00 14606.00
13846.00 15537.00
5/31/96 14496.00 16327.00
14177.00 15995.00
11/30/96 15839.00 18675.00
15850.00 19601.00
5/31/97 16944.00 21130.00
17916.00 22500.00
11/30/97 18973.00 24002.00
1/31/98 19131.00 24686.00
20370.00 26466.00
5/31/98 21379.00 27618.00
18644.00 24323.00
11/30/98 22353.00 29683.00
1/31/99 24694.00 32705.00
</TABLE>
- --------------------------------------------------------------------
MFS GROWTH AND INCOME PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99
- --------------------------------------------------------------------
1-year 29.08%
5-year 16.99%
Since Inception (2/9/93) 16.32%
- -------------------------------------------------------------------
(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 MFS Growth and Income Portfolio was up 10.47% for the
two-month period, slightly ahead of the S&P 500's 10.18% return.
The objective of the MFS Growth and Income Portfolio is to seek
reasonable current income and long-term growth of capital and
income by normally investing in equity securities. The Portfolio's
goal is to outperform the S&P 500 by selecting stocks which offer
above-average, sustainable earnings growth at a reasonable price
and to achieve market or below-market volatility.
MFS employs an active, research-driven approach to investing in
large capitalization, "blue chip" U.S. stocks. We believe that our
research-focused investment discipline has helped us in discerning
which companies' earnings are intact and growing consistently.
Looking ahead, we are predicting slower earnings growth for
domestic equities in 1999, as well as low inflation and low
interest rates. The environment dictates that we pay close
attention to earnings consistency and reliability, so we do not
intend to modify our fundamental method for selecting stocks. Our
discipline and our research focus have proved to be sound, and we
believe our approach will continue to work in the future.
As of January 31, 1999, the Portfolio's top sector weightings were
financial services (17%), healthcare (14%), technology (13%),
consumer staples (10%) and utilities (9%).
Past performance is no guarantee of future results.
- ---------------------
160
<PAGE> 162
ALLIANCE CAPITAL MANAGEMENT L.P.
[ALLIANCE GROWTH PORTFOLIO GRAPH]
<TABLE>
<CAPTION>
ALLIANCE GROWTH PORTFOLIO RUSSELL 1000 GROWTH INDEX(1)
------------------------- ----------------------------
<S> <C> <C>
2/9/93 10000.00 10000.00
9870.00 9830.00
5/31/93 10160.00 9956.00
10640.00 10085.00
11/30/93 10920.00 10220.00
11160.00 10443.00
5/31/94 10726.00 10137.00
11276.00 10742.00
11/30/94 10818.00 10497.00
11540.00 11358.00
5/31/95 13130.00 12363.00
15068.00 13389.00
11/30/95 16109.00 14561.00
16841.00 15410.00
5/31/96 17742.00 16388.00
16696.00 15848.00
11/30/96 20628.00 18388.00
21288.00 19161.00
5/31/97 23429.00 20723.00
25672.00 22085.00
11/30/97 26362.00 23262.00
1/31/98 27939.00 24226.00
31024.00 26048.00
5/31/98 32649.00 26681.00
28854.00 23905.00
11/30/98 35831.00 29927.00
1/31/99 45057.00 34542.00
</TABLE>
- --------------------------------------------------------------------
ALLIANCE GROWTH PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99
- --------------------------------------------------------------------
1-year 61.27%
5-year 31.13%
Since Inception (2/9/93) 28.64%
- -------------------------------------------------------------------
(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 outperformed the Russell 1000 Growth
Index during the two-month period ended January 31, 1999, with a
25.75% return versus the benchmark's return of 15.42%. The
outperformance was due both to overweightings in the technology
and retail sectors and to strong stock selection. America Online,
Tyco International, MBNA, HBO & Company, Pfizer, Dayton Hudson,
Dell Computer, Nokia, Cisco Systems, EMC Corp., and Airtouch all
significantly outperformed.
Sector allocations did not change dramatically during the period.
The largest sector exposures at the period's end continued to be
technology (42.8%), consumer services (16.5%), finance (15.4%),
and healthcare (14.0%). The top ten positions at January 30, 1999,
were Nokia (6.8%), Dell Computer(6.3%), Airtouch (6.3%), Home
Depot (4.9%), Cisco Systems (4.7%), Tyco International (4.6%),
Intel (4.4%), EMC Corp. (3.8%), MBNA (3.5%), and Pfizer(3.2%).
Past performance is no guarantee of future results.
---------------------
161
<PAGE> 163
ALLIANCE CAPITAL MANAGEMENT L.P.
[GLOBAL EQUITIES PORTFOLIO GRAPH]
<TABLE>
<CAPTION>
GLOBAL EQUITIES PORTFOLIO MSCI WORLD INDEX (1)
------------------------- --------------------
<S> <C> <C>
2/9/93 10000.00 10000.00
9970.00 10110.00
5/31/93 10670.00 11446.00
11260.00 12102.00
11/30/93 10990.00 11497.00
12090.00 12694.00
5/31/94 11976.00 12561.00
12409.00 13156.00
11/30/94 11755.00 12610.00
11614.00 12732.00
5/31/95 12649.00 13935.00
13054.00 14310.00
11/30/95 13574.00 15006.00
14374.00 15829.00
5/31/96 15078.00 16492.00
14648.00 16182.00
11/30/96 16046.00 17891.00
16325.00 18031.00
5/31/97 17599.00 19390.00
18191.00 19879.00
11/30/97 18180.00 20218.00
18680.00 21039.00
20205.00 22466.00
5/31/98 21489.00 23357.00
17916.00 20699.00
11/30/98 20968.00 24348.00
1/31/99 23090.00 26103.00
</TABLE>
- --------------------------------------------------------------------
GLOBAL EQUITIES PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99
- --------------------------------------------------------------------
1-year 23.61%
5-year 13.42%
Since Inception (2/9/93) 15.03%
- -------------------------------------------------------------------
(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 rally in global equities continued into the 1998 year-end and
start of 1999. For the two-month period ended January 31, 1999,
global equities, as measured by the MSCI World Index (with net
dividends reinvested), rose 7.21% in U.S. dollar-terms. The return
of the Global Equities Portfolio during the same period was
10.12%. The Portfolio's superior return was the result of strong
performance by key technology and financial holdings, and an
underweighted exposure to Japan, which continued to lag the
recovery in global equities.
Nothing has happened to change our view that markets are generally
full value and subject to ongoing shocks in terms of corporate
earnings, news announcements, and potential economic disruptions
emanating from emerging markets. As expected, volatility has been
more two-way this year, with markets moving up and down in almost
equal measure every two days or so. The intense sensitivity
investors continue to exhibit to pieces of news suggests that any
stock at any given point in time could rise or fall 20% in value
on just the smallest rumor or change in expectations. As such, our
focus on buying and selling stocks remains highly price sensitive.
Regional exposures within the Portfolio have changed little.
Assets are now distributed much closer to benchmark levels than
last year as we see little to differentiate between opportunities
around the world. Despite sustained domestic growth in the U.S.,
high valuations and apparent economic imbalances leave us cautious
on the direction of the market even though many businesses in
which we continue to invest still show "best-in-class" returns.
Japan offers long-term value but restructuring and policy
adjustments are needed. Asia looks intriguing on a medium-term
view and, with prices pulling back somewhat, we have become more
interested in increasing our exposure. We are focusing on
Singapore and Australia at the present time.
Europe looks set to have divergent experiences, with Continental
markets exhibiting weakness near-term and U.K. stocks offering
tremendous value on domestically geared stocks that should respond
to the Bank of England's more aggressive easing plans.
Past performance is no guarantee of future results.
- ---------------------
162
<PAGE> 164
PUTNAM INVESTMENTS
[INTERNATIONAL GROWTH AND INCOME PORTFOLIO GRAPH]
<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
10620 10117
2/28/98 11478 10769
5/31/98 12436 11141
8/31/98 10298 9941
11/30/98 11407 11195
1/31/99 11813 11607
</TABLE>
- --------------------------------------------------------------------
INTERNATIONAL GROWTH AND INCOME PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99
- --------------------------------------------------------------------
1-year 11.23%
Since Inception (6/2/97) 10.50%
- -------------------------------------------------------------------
(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 and Income Portfolio increased 3.56% for
the two-month period ended January 31, 1999, on par with the
Morgan Stanley EAFE Index, which gained 3.68%. International
equities enjoyed robust gains in December, continuing the powerful
rally that began in late September. However, the strong recovery
paused in January as MSCI EAFE slipped 0.30% in U.S. dollar terms.
As we have done for some time, we concentrated on European
equities and underweighted Asian markets. Many of the Portfolio's
top performers were found in Continental Europe including the
French-based STMicroelectronics (up 64%), whose two key
markets -- hand-held telephones and specialty electronic
devices -- were particularly strong amid an overall upswing in the
technology sector. Another impressive performer was Deutsche
Telecom (up 60%), which shifted strategy and aggressively cut
prices to maintain market share in both fixed and mobile telephone
markets. The company also benefited from the improved regulatory
environment created by the new German government. Another French
company enjoying big gains was Vivendi (up 31%), a water
utilities/cellular telephone operator/media conglomerate, which
continues to improve market share among its core businesses while
divesting itself of non-core operations.
Looking forward, we continue to upgrade the overall quality of the
Portfolio to minimize volatility. For example, we added to a
position in Diageo as its management reorganizes the company's
product line to optimize profitability and cash flow. At the same
time, we believe the company's stock is trading at a substantial
discount to its food and beverage peers.
Past performance is no guarantee of future results.
---------------------
163
<PAGE> 165
MORGAN STANLEY ASSET MANAGEMENT INC.
[INTERNATIONAL DIVERSIFIED EQUITIES PORTFOLIO GRAPH]
<TABLE>
<CAPTION>
INTERNATIONAL DIVERSIFIED
EQUITIES PORTFOLIO MSCI EAFE INDEX (1)
------------------------- -------------------
<S> <C> <C>
10/28/94 10000.00 10000.00
9073.00 9194.00
5/31/95 9759.00 10022.00
10021.00 10067.00
11/30/95 10233.00 10275.00
10925.00 10775.00
5/31/96 11411.00 11123.00
10905.00 10690.00
11/30/96 11752.00 11513.00
11463.00 11959.00
5/31/97 12342.00 12850.00
12359.00 12767.00
11/30/97 12165.00 12328.00
12895.00 13011.00
13626.00 13849.00
5/31/98 14574.00 14327.00
13410.00 12785.00
11/30/98 14395.00 14396.00
1/31/99 14630.00 14927.00
</TABLE>
- --------------------------------------------------------------------
INTERNATIONAL DIVERSIFIED EQUITIES PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99
- --------------------------------------------------------------------
1-year 13.45%
Since Inception (10/28/94) 9.34%
- -------------------------------------------------------------------
(1)The Morgan Stanley Capital International Europe, Australia, and Far East
(EAFE) Index represents the foreign stocks of 19 countries in Europe, Australia
and the Far East.
For the two-month period, the International Diversified Equities
Portfolio lagged the MSCI EAFE Index by a 1.63% to 3.69% margin.
During this period, country allocation decisions to overweight
Italy, Portugal, and Spain and our underweighted allocation to the
Netherlands enhanced returns. Our underweighted allocations to the
smaller European markets of Finland and Belgium and overweighted
positions in Hong Kong and Singapore detracted from results.
In Japan, we moved from an underweighted allocation -- roughly 75%
of the benchmark weight -- to neutral in January. This more
positive outlook on Japan is based on the increasing likelihood of
a tax cut, meaningful progress on cleaning up the bank sector, and
signs that the economy is starting to bottom out. Importantly,
stocks are attractively valued, particularly on a relative basis.
Asia looks relatively attractive as the region has already
experienced a severe recession, deflation, and a secular bear
market. Although we cannot identify the beginnings of an economic
recovery, currencies have strengthened, interest rates have
fallen, and corporate cost cutting is accelerating.
By contrast, Europe is just beginning to be affected by the
deflationary malaise. European economies are showing signs of
slowing as 1999 GDP growth estimates have fallen from over 3% to
1.5%, export growth is collapsing, and price indexes are falling.
Analysts' expectations for 1999 earnings in Europe are still 15%.
We at Morgan Stanley, however, are less optimistic and believe
there is a good chance corporate earnings in Europe could be flat
to down this year.
Past performance is no guarantee of future results.
- ---------------------
164
<PAGE> 166
DAVIS SELECTED ADVISERS, L.P.
[REAL ESTATE PORTFOLIO GRAPH]
<TABLE>
<CAPTION>
REAL ESTATE PORTFOLIO MORGAN STANLEY REIT 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
11651 11701
2/28/98 11539 11513
5/31/98 11315 11270
8/31/98 9479 9488
11/30/98 10027 10044
1/31/99 9753 9600
</TABLE>
- --------------------------------------------------------------------
REAL ESTATE PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99
- --------------------------------------------------------------------
1-year -16.29%
Since Inception (6/2/97) -1.49%
- -------------------------------------------------------------------
(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 -2.73% for
the two-month period from December 1, 1998, to January 30, 1999,
outperforming the Morgan Stanley REIT Index return of -4.42%.
Although 1998 was a tough year for REITs, they are now offering
some of the best fundamentals of any publicly traded company and
are selling at recession-like multiples. Looking at the real
estate holdings in the Portfolio, we see businesses that are
currently growing their earnings about twice as fast as the S&P
500 yet are trading at multiples that are 70% or more lower than
the multiple on the S&P 500. Earnings growth for real estate
companies will have to slow from the exceptionally high levels of
recent years. However, we still anticipate annual earnings
increases of 6% to 8% and dividend yields of 6%, producing a total
return of approximately 12%, assuming multiples remain constant.
We believe all the evidence indicates real estate is attractively
undervalued. We are extremely comfortable with adding to our
holdings of well-run companies that are capable of generating
steadily increasing rental income and solid returns on capital. We
think 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.
Past performance is no guarantee of future results.
---------------------
165
<PAGE> 167
SUNAMERICA ASSET MANAGEMENT CORP.
[AGGRESSIVE GROWTH PORTFOLIO GRAPH]
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH PORTFOLIO RUSSELL 2000 INDEX(1)
--------------------------- ---------------------
<S> <C> <C>
6/3/96 10000.00 10000.00
8/31/96 9270.00 9260.00
11/30/96 10360.00 9864.00
2/28/97 10120.00 10054.00
5/31/97 10099.00 10675.00
8/31/97 10741.00 11917.00
11/30/97 11771.00 12149.00
11420.00 12166.00
2/28/98 12281.00 13065.00
5/31/98 12081.00 12941.00
8/31/98 9919.00 9603.00
11/30/98 12331.00 11342.00
1/31/99 15534.00 12205.00
</TABLE>
- --------------------------------------------------------------------
AGGRESSIVE GROWTH PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99
- --------------------------------------------------------------------
1-year 36.02%
Since Inception (6/3/96) 17.97%
- -------------------------------------------------------------------
(1)The Russell 2000 Index is comprised of the smallest 2000 companies in the
Russell 3000 Index, representing approximately 11% of the Russell 3000 total
market capitalization. The Index was developed with a base of $135.00 as of
December 31, 1986.
For the two-month period ended January 31, 1999, the Aggressive
Growth Portfolio returned 25.97% versus the Russell 2000 Index
return of 7.61%.
During the months of December 1998 and January 1999, the Portfolio
continued its outperformance and recovery off the lows reached
during the fourth quarter of 1998. Our core sectors of investment
continue to include the technology and telecommunications groups,
consumer cyclicals, and the "new media" companies of the Internet.
While many of our companies within these industries continue to
report double-digit earnings increases, we initiated partial
selling recently in the Portfolio's top holdings. Some of these
partial sell candidates included America Online, Yahoo!,
Abercrombie & Fitch, Real Networks, CMG Information, and Travel
Services, as stock price targets have been met and the potential
for volatility increases.
While we continue to remain optimistic about the market and
emerging stock performance during 1999, we also are poised for any
changes in interest rates and the economy which could stall the
market's tremendous progress since last October.
Past performance is no guarantee of future results.
- ---------------------
166
<PAGE> 168
PUTNAM INVESTMENTS PORTFOLIO
[EMERGING MARKETS PORTFOLIO GRAPH]
<TABLE>
<CAPTION>
MSCI EMERGING MARKETS FREE
EMERGING MARKETS PORTFOLIO 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
7697 7291
2/28/98 8474 8052
5/31/98 7647 7171
8/31/98 5155 4708
11/30/98 6275 5994
1/31/99 6287 5812
</TABLE>
- --------------------------------------------------------------------
EMERGING MARKETS PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/99
- --------------------------------------------------------------------
1-year -18.32%
Since Inception (6/2/97) -24.28%
- -------------------------------------------------------------------
(1)The Morgan Stanley Capital International (MSCI) Emerging Markets--Free Index
is a capitalization-weighted equity index composed of companies that are
representative of the market structure of the following countries: Argentina,
Brazil, Chile, China, Columbia, Czech Republic, Greece, Hungary, India,
Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Pakistan, Peru,
Philippines, Poland, Portugal, South Africa, Sri Lanka, Taiwan, Thailand,
Turkey, and Venezuela.
For the two months ended January 31, 1999, the Emerging Markets
Portfolio gained 0.20% versus the MSCI Emerging Markets Free
Index, which posted a return of -3.04%.
Emerging market performance was restrained during the period amid
devaluation of the Brazilian real, which fell by almost 70%
against the U.S. dollar. The troubles with the Brazilian currency
brought an end to the strong emerging market rally in October and
November of 1998, yet the fallout was not unduly harsh. Chile and
Mexico, for example, slipped just 2.4% and 1.3%, respectively, in
January. Meanwhile, emerging markets in Europe rallied, benefiting
from the successful introduction of the euro in the developed
markets.
The Portfolio benefited from a large overweighting in Greek banks,
heavy exposure to electronic stocks in Taiwan, and holdings in
South Korea. However, performance was hampered by poor stock
selection in India, South Africa, and Brazil.
Looking ahead, the Latin American markets have endured the
long-feared Brazilian devaluation and may now be poised to
rebound. In Asia, we see significant economic restructuring and
gradually reviving economic growth. Expectations in Europe remain
positive amid the apparent success of the euro.
Past performance is no guarantee of future results.
---------------------
167
<PAGE> 169
<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>
Alliance Growth....................... $601,414,840 $24,127,532 $577,287,308 $1,303,572,637 $ -- $ --
Global Equities....................... 102,654,250 17,849,721 84,804,529 374,730,135 -- --
International Growth and Income....... 11,755,810 7,607,271 4,148,539 142,287,096 -- --
International Diversified Equities.... 61,834,981 12,642,472 49,192,509 318,848,949 -- 3,893,300
Real Estate**......................... 817,611 8,295,390 (7,477,779) 66,755,670 1,091,994 --
Aggressive Growth..................... 42,351,940 6,586,462 35,765,478 147,144,128 -- --
Emerging Markets**.................... 4,728,286 5,369,290 (641,004) 33,574,684 8,943,573 --
</TABLE>
* Expires 2004-2006
** Post 10/31/98 Capital Loss Deferrals: High Yield Bond $2,334,495; Worldwide
High Income $3,083,420; Real Estate $1,678,576; Emerging Markets $1,882,813.
*** Post 10/31/98 Currency Loss Deferrals; Federated Value $6; Emerging Markets
$123,655.
+ Net capital loss carryovers reported as of January 31, 1999, 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
SunAmerica Balanced- $0--$ 50 million 0.70%
Growth-Income > $ 50 million 0.65%
> $150 million 0.60%
> $300 million 0.55%
> $500 million 0.50%
Alliance Growth $0--$ 50 million 0.70%
> $ 50 million 0.60%
> $150 million 0.70%
MFS Total Return $0--$ 50 million 0.65%
> $ 50 million
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------
MANAGEMENT
PORTFOLIO ASSETS FEES
<S> <C> <C>
Utility-Federated Value $0--$150 million 0.75%
> $150 million 0.60%
> $500 million 0.50%
Venture Value-Real Estate $0--$100 million 0.80%
> $100 million 0.75%
> $500 million 0.70%
"Dogs" of Wall Street > $ 0 0.60%
Putnam Growth $0--$150 million 0.85%
> $150 million 0.80%
> $300 million 0.70%
MFS Growth and Income $0--$600 million 0.70%
> $600 million 0.65%
> $1.5 billion 0.60%
International Growth and $0--$150 million 1.00%
Income > $150 million 0.90%
> $300 million 0.80%
Global Equities $0--$ 50 million 0.90%
> $ 50 million 0.80%
> $150 million 0.70%
> $300 million 0.65%
Aggressive Growth $0--$100 million 0.75%
> $100 million 0.675%
> $250 million 0.625%
> $500 million 0.60%
Emerging Markets > $ 0 1.25%
</TABLE>
- ---------------------
136
<PAGE> 170
PQ
1 SunAmerica Center
Los Angeles, California 90067-6022
- --------------------------------------------------------------------------------
BULK RATE
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-ARV (3/99)
