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SUNAMERICA SERIES TRUST
Supplement to the Prospectus dated July 5, 2000
This supplement contains information concerning the following Portfolios of the
Trust:
- GOLDMAN SACHS RESEARCH PORTFOLIO
- BLUE CHIP GROWTH PORTFOLIO
- GROWTH OPPORTUNITIES PORTFOLIO
- TECHNOLOGY PORTFOLIO
This supplement should be read in conjunction with the Trust's Prospectus dated
July 5, 2000. Capitalized terms used herein have the same meaning as in the
Prospectus.
TRUST HIGHLIGHTS
INVESTMENT GOALS AND PRINCIPAL INVESTMENT STRATEGIES
The following supplements the information concerning the Portfolios' investment
goals and principal investment strategies under the "TRUST HIGHLIGHTS" section
of the Prospectus:
EQUITY PORTFOLIOS
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<CAPTION>
PORTFOLIO INVESTMENT GOAL PRINCIPAL INVESTMENT STRATEGY
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Goldman Sachs long term growth of invests under normal circumstances, at least 90% of its total
Research Portfolio capital assets in U.S. equity securities, including securities of
foreign issuers that are traded in the U.S. Under normal
circumstances, the Portfolio will only purchase equity
securities that are included in the Goldman Sachs Global
Investment Research Division's U.S. Select List and will sell
securities that have been removed from the U.S. Select List.
(See "Additional Information about the Goldman Sachs Research
Portfolio" below for additional information about the
investment strategy for the Portfolio)
Blue Chip Growth capital appreciation invests primarily in common stocks that demonstrate the
Portfolio potential for capital appreciation, issued by large-cap
companies
Growth Opportunities capital appreciation invests primarily in common stocks that demonstrate the
Portfolio potential for capital appreciation, issued generally by
mid-cap companies
Technology Portfolio long term capital invests primarily in equity securities that demonstrate the
appreciation potential for capital appreciation, issued by companies the
Subadvisor believes are positioned to benefit from
involvement in technology and technology-related industries
worldwide
</TABLE>
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PRINCIPAL RISKS
The following supplements the information concerning the principal risks of
investing in the Portfolios under the "TRUST HIGHLIGHTS" section of the
Prospectus:
- The GOLDMAN SACHS RESEARCH, BLUE CHIP GROWTH, GROWTH
OPPORTUNITIES and TECHNOLOGY PORTFOLIOS invest primarily in
equity securities, including growth stocks.
- The TECHNOLOGY PORTFOLIO may invest in stocks of smaller
companies.
- The GOLDMAN SACHS RESEARCH, BLUE CHIP GROWTH, GROWTH
OPPORTUNITIES and TECHNOLOGY PORTFOLIOS may invest
internationally, including in "emerging market" countries.
For a detailed description of the risks involved with the above-referenced
investments, please refer to Risks of Investing in Equity Securities, Risks of
Investing Internationally and Risks of Investing in Smaller Companies under the
"TRUST HIGHLIGHTS" section of the Prospectus.
In addition, the GOLDMAN SACHS RESEARCH PORTFOLIO invests principally in
securities included in the Goldman Sachs Investment Research Division's U.S.
Select List which comprises approximately 25-35 equity securities. As a result
of the smaller universe of stocks in which the Portfolio generally invests, it
may be subject to greater risks than would a more diversified fund.
Please refer to the Prospectus for additional information concerning other
principal risks that apply to all Portfolios.
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ADDITIONAL INFORMATION ABOUT THE
GOLDMAN SACHS RESEARCH PORTFOLIO
INVESTMENT STRATEGY FOR THE GOLDMAN SACHS RESEARCH PORTFOLIO
Under normal circumstances, the Goldman Sachs Research Portfolio will generally
purchase a stock that has been added to, or sell a stock that has been removed
from, the U.S. Select List (as described below) at some point after publication
of that change, at the discretion of the Subadviser. Notification of changes to
the U.S. Select List is made to clients of Goldman, Sachs & Co. and to the
portfolio management team of the Goldman Sachs Research Portfolio at the same
time. The Subadviser expects the performance of the Goldman Sachs Research
Portfolio to be driven by sector and/or stock selection of the U.S. Select List.
In addition, the Subadviser may at times purchase supplemental securities that
are not included on the U.S. Select List.
Goldman Sachs has achieved world-wide recognition for its value-added research
products. The U.S. Select List was introduced on September 9, 1998 and comprises
approximately 25 to 35 equity securities that the Goldman Sachs U.S. Stock
Selection Committee expects, as a portfolio, to outperform its benchmark S&P
500(R) over the next 12 to 18 months. The U.S. Stock Selection Committee
currently comprises ten senior professionals, including the head of Global
Investment Research and the Director of U.S. Investment Research, as well as a
senior market strategist, economist, and sector specialists. The list is
consistent with overall investment policy and emphasizes strategically favored
economic sectors. The U.S. Select List is updated on a regular basis.
The U.S. Select List is not compiled with any particular client or product in
mind and is not (and will not be) complied with the Goldman Sachs Research
Portfolio in mind. The performance of the U.S. Select List cannot be used to
predict performance of the Goldman Sachs Research Portfolio, an actively managed
mutual fund. The performance of the Goldman Sachs Research Portfolio may differ
from that of the published U.S. Select List, for a variety of reasons, including
transaction costs, time delay between when a stock is added or removed from the
list and when it is bought or sold for the Goldman Sachs Research Portfolio;
modification in the stock weights in order to control risk; and the Goldman
Sachs Research Portfolio's investments in cash equivalents, options and other
securities and instruments that are not included in the U.S. Select List.
MORE INFORMATION ABOUT THE PORTFOLIOS
INVESTMENT STRATEGIES
The following chart supplements the information about Portfolio investments
under the "MORE INFORMATION ABOUT THE PORTFOLIOS - INVESTMENT STRATEGIES"
section of the Prospectus:
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EQUITY PORTFOLIOS
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<CAPTION>
GOLDMAN SACHS RESEARCH BLUE CHIP GROWTH GROWTH OPPORTUNITIES TECHNOLOGY
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What are the Portfolio's - Equity securities: - Equity securities: - Equity securities: - Equity securities:
principal investments? - common stocks - large-cap stocks - mid-cap stocks - large-cap stocks
- warrants (at least 65%) - mid-cap stocks
- rights - mid-cap stocks - small-cap stocks
- convertible securities - Foreign securities:
- Equity swaps - ADRs, EDRs and
(up to 15%) GDRs
- Preferred stocks
In what other types of - Small-cap stocks - Small-cap stocks - Small-cap stocks N/A
investments may the - Currency transactions - Foreign securities - Large-cap stocks
Portfolio significantly - Futures
invest? - Equity securities of
foreign issuers
- Hybrid instruments
(up to 15%):
- structured securities
- SPDRs
(up to 10%)
- Other registered
investment companies
(up to 10% and
including exchange-
traded funds)
- REITs
- U.S. government
securities
- Corporate debt
instruments
- Short-term investments
What other types of - Options - Short-term - Short-term - Warrants
investments may the - Currency transactions investments (up to investments - Rights
Portfolio use as part of - Forward commitments 10%) (up to 10%) - Illiquid securities
efficient portfolio - When-issued and - Defensive - Defensive investments (up to 15%)
management delayed delivery instruments - Options and futures - Options and futures
or to enhance return ? - Borrowing for - Options and futures
temporary or emergency - Borrowing for
purposes temporary or
(up to 33 1/3%) emergency purposes
- Short sales (up to 33 1/3%)
(up to 25% and only - Securities lending
"against the box") (up to 33 1/3%)
- Securities lending
(up to 33 1/3%)
- Repurchase agreements
</TABLE>
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What risks normally - Market volatility - Market volatility - Market volatility - Market volatility
affect the Portfolio? - Securities selection - Securities selection - Securities selection - Securities selection
- Credit quality - Active trading - Small and medium - Technology sector
- Derivatives - Interest rate sized companies - IPO investing
- Illiquidity fluctuation - Derivatives - Derivatives
- Interest rate fluctuation - Growth stocks - Hedging - Active trading
- Small companies - Growth stocks - Growth stocks
- Real estate industry - Foreign exposure
- Foreign exposure
- Unseasoned companies
</TABLE>
GLOSSARY
Please refer to the "GLOSSARY" section of the Prospectus for definitions of the
investment and risk terminology used in the charts above and throughout this
Supplement.
RISK TERMINOLOGY
The following supplements the information under the "GLOSSARY - RISK
TERMINOLOGY" section of the Prospectus:
IPO INVESTING: A Portfolio's purchase of shares issued as part of, or a short
period after, companies' initial public offerings ("IPOs"), exposes it to the
risks associated with companies that have little operating history as public
companies, as well as to the risks inherent in those sectors of the market where
these new issuers operate. The market for IPO issuers has been volatile, and
share prices of newly-public companies have fluctuated in significant amounts
over short periods of time.
SHORT SALE RISKS: Short sales by a Portfolio involve certain risks and special
considerations. Possible losses from short sales differ from losses that could
be incurred from a purchase of a security, because losses from short sales may
be unlimited, whereas losses from purchases can equal only the total amount
invested.
TECHNOLOGY SECTOR: There are numerous risks and uncertainties involved in
investing in the technology sector. Historically, the price of securities in
this sector have tended to be volatile. A Portfolio that invests primarily in
technology-related issuers bears an additional risk that economic events may
affect a substantial portion of the Portfolio's investments. In addition, at
times, equity securities of technology-related issuers may underperform relative
to other sectors.
UNSEASONED COMPANIES: Unseasoned companies are companies that have operated less
than three years. The securities of such companies may have limited liquidity,
which can result in their being priced higher or lower than might otherwise be
the case. In addition, investments in unseasoned companies are more speculative
and entail greater risk than do investments in companies with an established
operating record.
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MANAGEMENT
INVESTMENT ADVISER AND MANAGER
SunAmerica Asset Management Corp. (SAAMCo) serves as investment adviser and
manager for all the Portfolios of the Trust. For a detailed description of
SAAMCo, please refer to the section in the Prospectus entitled "MANAGEMENT -
INVESTMENT ADVISER AND MANAGER."
SAAMCo's fee with respect to the GOLDMAN SACHS RESEARCH, BLUE CHIP GROWTH,
GROWTH OPPORTUNITIES AND TECHNOLOGY PORTFOLIOS as a percentage of average daily
net assets, including breakpoints, is as follows:
<TABLE>
<CAPTION>
FEE
PORTFOLIO (INCLUDING BREAKPOINTS)
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Goldman Sachs Research Portfolio............................... 1.20%
Blue Chip Growth Portfolio..................................... 0.70% to $250 million
0.65% next $250 million
0.60% over $500 million
Growth Opportunities Portfolio................................. 0.75% to $250 million
0.70% next $250 million
0.65% over $500 million
Technology Portfolio........................................... 1.20%
</TABLE>
INFORMATION ABOUT THE SUBADVISERS
Goldman Sachs Asset Management (GSAM) serves as Subadviser for the GOLDMAN SACHS
RESEARCH PORTFOLIO and Morgan Stanley Dean Witter Investment Management, d/b/a,
Morgan Stanley Asset Management (MSAM) serves as Subadviser for the TECHNOLOGY
PORTFOLIO. For a detailed description of GSAM and MSAM, please refer to the
section in the Prospectus entitled "MANAGEMENT - INFORMATION ABOUT THE
SUBADVISERS."
PORTFOLIO MANAGEMENT
The following supplements the information under the "MANAGEMENT - PORTFOLIO
MANAGEMENT" section of the Prospectus:
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<TABLE>
<CAPTION>
NAME AND TITLE OF
PORTFOLIO ADVISER/ PORTFOLIO MANAGER (AND/ EXPERIENCE
SUBADVISER OR MANAGEMENT TEAM
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Goldman Sachs GSAM - Melissa Brown Ms. Brown joined GSAM as a portfolio
Research Vice President and manager in 1998. From 1984 to 1998, she
Portfolio Product Manager for was the director of Quantitative Equity
Quantitative Equities Research and served on the Investment
Policy Committee at Prudential Securities.
- Kent A. Clark Mr. Clark joined GSAM as a portfolio
Managing Director and manager in the quantitative equity
Director of Quantitative management team in 1992.
Research
- Robert C. Jones Mr. Jones joined GSAM as a portfolio
Managing Director and manager in 1989.
Head of Quantitative
Equities
- Victor H. Pinter Mr. Pinter joined GSAM as a research
Vice President and analyst in 1990. He became a portfolio
Head of Portfolio manager in 1992.
Construction
Blue Chip SAAMCo - Francis D. Gannon Mr. Gannon joined SAAMCo as an equity
Growth Portfolio Senior Vice President analyst in 1993 and has been a portfolio
and Portfolio Manager manager with the firm since 1996.
Growth SAAMCo - Brian Clifford Mr. Clifford has been a portfolio manager
Opportunities Portfolio Manager with SAAMCo since joining the firm in
Portfolio February 1998. From 1995 until he joined
SAAMCo, Mr. Clifford was a portfolio manager
with Morgan Stanley Dean Witter.
Technology MSAM - Alexander L. Umansky Mr. Umansky joined MSAM as a compliance
Portfolio Vice President and analyst in 1994 and has been a Portfolio
Manager portfolio manager since 1999. From
1996 to 1999 he was a research analyst in
MSAM's Institutional Equity Group focusing
primarily on technology.
- Stephen C. Sexauer Mr. Sexauer has been a portfolio manager
Principal and Portfolio with MSAM since joining the firm in
Manager 1989. His responsibilities also include
equity research for telecommunication,
technology, finance and utilities.
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Dated: September 21, 2000
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