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OMB APPROVAL
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OMB Number: 3235-0570
Expires: November 30, 2005
Estimated average burden
hours per response....... 5.0
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09169
---------------------------------------------
SunAmerica Strategic Investment Series, Inc.
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Harborside Financial Center, 3200 Plaza 5, Jersey City, NJ 07311
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Robert M. Zakem, ESQ.
Senior Vice President & General Counsel
AIG SunAmerica Asset Management Corp.
Harborside Financial Center 3200 Plaza 5
Jersey City, NJ 07311
- -------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (201) 324-6363
----------------------------
Date of fiscal year end: October 31
--------------------------
Date of reporting period: April 30, 2003
-------------------------
<Page>
Item 1. Reports to Shareholders.
SunAmerica Strategic Investment Series, Inc., Semiannual Report at
April 30, 2003.
<Page>
[GRAPHIC]
SUNAMERICA
THE RETIREMENT SPECIALIST
STRATEGIC INVESTMENT SERIES
2003 SEMIANNUAL REPORT
[AIG SUNAMERICA MUTUAL FUNDS LOGO]
<Page>
APRIL 30, 2003 SEMIANNUAL REPORT
SUNAMERICA
STRATEGIC INVESTMENT SERIES, INC.
SUNAMERICA BIOTECH/HEALTH FUND (SBHAX)
TAX MANAGED EQUITY FUND (TXMAX)
SUNAMERICA STOCK INDEX FUND (NBSKX)
SUNAMERICA SCIENCE & TECHNOLOGY FUND (NSTAX)
SUNAMERICA AGGRESSIVE GROWTH LIFESTAGE FUND (NKLAX)
SUNAMERICA MODERATE GROWTH LIFESTAGE FUND (NLMAX)
SUNAMERICA CONSERVATIVE GROWTH LIFESTAGE FUND (NCLAX)
<Page>
TABLE OF CONTENTS
- ---------------------------------------------
<Table>
STATEMENT OF ASSETS AND LIABILITIES............... 1
STATEMENT OF OPERATIONS........................... 3
STATEMENTS OF CHANGES IN NET ASSETS............... 4
FINANCIAL HIGHLIGHTS.............................. 7
PORTFOLIO OF INVESTMENTS.......................... 14
NOTES TO FINANCIAL STATEMENTS..................... 30
DIRECTOR INFORMATION.............................. 49
</Table>
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
STATEMENT OF ASSETS AND LIABILITIES -- APRIL 30, 2003 -- (UNAUDITED)
<Table>
<Caption>
TAX AGGRESSIVE MODERATE CONSERVATIVE
BIOTECH/ MANAGED STOCK SCIENCE & GROWTH GROWTH GROWTH
HEALTH EQUITY INDEX TECHNOLOGY LIFESTAGE LIFESTAGE LIFESTAGE
FUND FUND FUND FUND FUND FUND FUND
-----------------------------------------------------------------------------------------------
ASSETS:
Investments securities,
at value*............... $ 35,176,069 $ 58,681,869 $ 29,519,038 $ 10,188,501 $ 20,302,795 $30,797,710 $19,092,331
Short-term securities
(cost approximates
market)................. -- 875,000 129,885 -- -- -- --
Repurchase agreements
(cost equals market).... 5,558,000 -- 1,389,000 245,000 -- -- --
Foreign cash@............ -- -- -- 32 -- -- --
Deposit with brokers for
securities sold short... 2,081,847 -- -- -- -- -- --
Cash..................... 311 393 472 189 12,264 86,469 --
Receivable for
investments sold........ 26,730 -- -- 55,892 -- -- --
Receivable for shares of
beneficial interest
sold.................... 29,662 11,469 45,121 1,934 13,482 35,065 8,425
Interest and dividends
receivable.............. 174 79,946 31,297 2,587 -- -- --
Receivable for variation
margin on futures
contracts............... -- -- 193 -- -- -- --
Receivable from
investment adviser...... 9,678 11,478 15,762 15,261 18,523 14,804 14,967
Prepaid expenses......... 315 488 132 858 17,537 18,527 17,756
------------ ------------ ------------ ------------ ------------ ----------- -----------
Total assets......... 42,882,786 59,660,643 31,130,900 10,510,254 20,364,601 30,952,575 19,133,479
------------ ------------ ------------ ------------ ------------ ----------- -----------
LIABILITIES:
Payable for investments
purchased............... 1,464,596 -- -- 81,583 -- -- --
Payable for shares of
beneficial interest
sold.................... 111,621 68,675 9,970 1,020 5,578 18,770 5,854
Accrued expenses......... 106,957 101,610 29,047 15,267 2,421 6,345 8,613
Distribution and service
maintenance fees
payable................. 23,442 40,046 20,162 6,838 6,568 8,418 5,447
Investment advisory and
management fees
payable................. 23,210 40,498 6,670 7,319 1,619 2,460 1,550
Securities sold short, at
value#.................. 2,135,250 -- -- -- -- -- --
Due to custodian......... -- -- -- -- -- -- 1,809
Dividend payable on
securities sold short... 500 -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ----------- -----------
Total liabilities.... 3,865,576 250,829 65,849 112,027 16,186 35,993 23,273
------------ ------------ ------------ ------------ ------------ ----------- -----------
Net assets......... $ 39,017,210 $ 59,409,814 $ 31,065,051 $ 10,398,227 $ 20,348,415 $30,916,582 $19,110,206
============ ============ ============ ============ ============ =========== ===========
NET ASSETS WERE COMPOSED
OF:
Shares of beneficial
interest $.0001 par
value................... $ 514 $ 652 $ 383 $ 437 $ 308 $ 396 $ 223
Paid-in capital.......... 79,371,627 103,084,929 43,570,759 32,659,801 32,873,621 40,199,467 23,685,964
------------ ------------ ------------ ------------ ------------ ----------- -----------
79,372,141 103,085,581 43,571,142 32,660,238 32,873,929 40,199,863 23,686,187
Accumulated undistributed
net investment
income (loss)........... (359,257) (56,214) 66,278 (78,119) (124,039) 24,540 63,874
Accumulated undistributed
net realized gain (loss)
on investments, futures
contracts, securities
sold short and foreign
currency transactions... (39,945,348) (30,388,254) (2,672,767) (20,985,629) (10,642,015) (8,174,704) (4,808,620)
Net unrealized
appreciation
(depreciation) on:
Investments............ 3,077 (13,231,299) (10,008,697) (1,198,110) (1,759,460) (1,133,117) 168,765
Future contracts....... -- -- 109,095 -- -- -- --
Foreign currencies and
other assets and
liabilities........... -- -- -- (153) -- -- --
Securities sold
short................. (53,403) -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ----------- -----------
Net assets........... $ 39,017,210 $ 59,409,814 $ 31,065,051 $ 10,398,227 $ 20,348,415 $30,916,582 $19,110,206
============ ============ ============ ============ ============ =========== ===========
*Identified cost of
investment securities... $ 35,172,992 $ 71,913,168 $ 39,527,735 $ 11,386,611 $ 22,062,255 $31,930,827 $18,923,566
============ ============ ============ ============ ============ =========== ===========
@Identified cost of
foreign cash............ $ -- $ -- $ -- $ 28 $ -- $ -- $ --
============ ============ ============ ============ ============ =========== ===========
#Proceeds from securities
sold short.............. $ 2,081,847 $ -- $ -- $ -- $ -- $ -- $ --
============ ============ ============ ============ ============ =========== ===========
</Table>
See Notes to Financial Statements
1
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
STATEMENT OF ASSETS AND LIABILITIES -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
<Table>
<Caption>
TAX AGGRESSIVE MODERATE CONSERVATIVE
BIOTECH/ MANAGED STOCK SCIENCE & GROWTH GROWTH GROWTH
HEALTH EQUITY INDEX TECHNOLOGY LIFESTAGE LIFESTAGE LIFESTAGE
FUND FUND FUND FUND FUND FUND FUND
------------------------------------------------------------------------------------------
CLASS A (UNLIMITED SHARES AUTHORIZED):
Net assets............... $14,677,493 $14,603,968 $ 8,865,681 $2,378,357 $ 3,048,693 $ 4,363,055 $4,362,020
Shares of beneficial
interest issued and
outstanding............ 1,909,554 1,570,140 1,090,423 981,232 462,432 559,431 510,533
Net asset value and
redemption price per
share.................. $ 7.69 $ 9.30 $ 8.13 $ 2.42 $ 6.59 $ 7.80 $ 8.54
Maximum sales charge
(5.75% of offering
price)................. 0.47 0.57 0.50 0.15 0.40 0.48 0.52
----------- ----------- ----------- ---------- ----------- ----------- ----------
Maximum offering price to
public................. $ 8.16 $ 9.87 $ 8.63 $ 2.57 $ 6.99 $ 8.28 $ 9.06
=========== =========== =========== ========== =========== =========== ==========
CLASS B (UNLIMITED SHARES AUTHORIZED):
Net assets............... $14,516,904 $22,499,376 $19,685,218 $7,217,526 $10,186,614 $12,220,711 $6,684,958
Shares of beneficial
interest issued and
outstanding............ 1,925,568 2,486,375 2,431,184 3,040,579 1,541,159 1,562,801 779,035
Net asset value, offering
and redemption price
per share (excluding
any applicable
contingent deferred
sales charge).......... $ 7.54 $ 9.05 $ 8.10 $ 2.37 $ 6.61 $ 7.82 $ 8.58
=========== =========== =========== ========== =========== =========== ==========
CLASS II (UNLIMITED SHARES AUTHORIZED):
Net assets............... $ 9,822,813 $22,306,470 $ 2,514,152 $ 639,831 $ 365,353 $ 1,270,463 $1,571,202
Shares of beneficial
interest issued and
outstanding............ 1,300,725 2,461,645 312,035 276,716 54,758 162,249 182,577
Net asset value and
redemption price per
share (excluding any
applicable contingent
deferred
sales charge).......... $ 7.55 $ 9.06 $ 8.06 $ 2.31 $ 6.67 $ 7.83 $ 8.61
Maximum sales charge
(1.00% of offering
price)................. 0.08 0.09 0.08 0.02 0.07 0.08 0.09
----------- ----------- ----------- ---------- ----------- ----------- ----------
Maximum offering price to
public................. $ 7.63 $ 9.15 $ 8.14 $ 2.33 $ 6.74 $ 7.91 $ 8.70
=========== =========== =========== ========== =========== =========== ==========
CLASS I (UNLIMITED SHARES AUTHORIZED):
Net assets............... $ -- $ -- $ -- $ 162,513 $ 6,747,755 $13,062,353 $6,492,026
Shares of beneficial
interest issued and
outstanding............ -- -- -- 66,700 1,021,834 1,676,031 759,220
Net asset value, offering
and redemption price
per share.............. $ -- $ -- $ -- $ 2.44 $ 6.60 $ 7.79 $ 8.55
=========== =========== =========== ========== =========== =========== ==========
</Table>
See Notes to Financial Statements
2
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED APRIL 30,
2003 -- (UNAUDITED)
<Table>
<Caption>
TAX AGGRESSIVE MODERATE CONSERVATIVE
BIOTECH/ MANAGED STOCK SCIENCE & GROWTH GROWTH GROWTH
HEALTH EQUITY INDEX TECHNOLOGY LIFESTAGE LIFESTAGE LIFESTAGE
FUND FUND FUND FUND FUND FUND FUND
----------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Income:
Interest....................... $ 33,895 $ 1,095 $ 9,445 $ 1,026 $ -- $ -- $ --
Dividends*..................... 2,300 544,682 256,696 17,295 24,847 143,152 166,536
----------- ----------- ---------- ----------- ----------- ---------- ----------
Total investment income...... 36,195 545,777 266,141 18,321 24,847 143,152 166,536
----------- ----------- ---------- ----------- ----------- ---------- ----------
Expenses:
Investment advisory and
management fees............... 150,246 260,589 39,634 43,509 9,578 14,262 9,241
Distribution and service
maintenance fees-Class A...... 25,792 26,426 13,993 3,852 1,455 1,985 2,041
Distribution and service
maintenance fees-Class B...... 73,024 116,232 93,531 33,523 36,884 44,232 26,245
Distribution and service
maintenance fees-Class II..... 53,613 114,839 13,280 3,057 1,087 4,072 5,025
Service fees-Class I........... -- -- -- 189 -- -- --
Transfer agent fees and
expenses-Class A.............. 23,526 20,541 12,062 6,744 2,265 1,510 1,510
Transfer agent fees and
expenses-Class B.............. 26,453 30,915 33,365 22,702 3,020 5,285 2,265
Transfer agent fees and
expenses-Class II............. 20,436 30,024 4,538 3,186 1,510 1,510 1,510
Transfer agent fees and
expenses-Class I.............. -- -- -- 250 755 755 755
Registration fees-Class A...... 11,036 6,199 4,861 3,258 1,510 1,510 1,510
Registration fees-Class B...... 9,942 6,409 2,862 3,641 1,510 1,510 1,510
Registration fees-Class II..... 9,942 6,695 3,127 2,555 755 755 755
Registration fees-Class I...... -- -- -- 2,917 755 755 755
Printing expense............... 4,230 861 11,689 15,369 20,385 12,080 6,040
Custodian fees and expenses.... 26,913 27,726 25,548 27,009 5,285 5,285 5,285
Audit and tax fees............. 8,940 9,420 9,260 9,260 21,305 21,305 21,305
Legal fees and expenses........ 2,938 4,483 1,991 2,534 2,265 2,265 2,265
Directors' fees and expenses... 3,262 3,522 1,257 1,062 1,639 1,700 1,632
Dividend expense on securities
sold short.................... 8,450 -- -- -- -- -- --
Miscellaneous expenses......... 3,976 4,540 5,496 2,903 2,264 2,325 1,967
----------- ----------- ---------- ----------- ----------- ---------- ----------
Total expenses............... 462,719 669,421 276,494 187,520 114,227 123,101 91,616
Less: expenses
waived/reimbursed by
investment adviser.......... (67,995) (74,535) (95,838) (91,271) (41,305) (22,849) (25,926)
Less: custody credits earned
on cash balances (1,901) (164) (1,134) (35) -- -- --
----------- ----------- ---------- ----------- ----------- ---------- ----------
Net expenses................. 392,823 594,722 179,522 96,214 72,922 100,252 65,690
----------- ----------- ---------- ----------- ----------- ---------- ----------
Net investment income (loss)..... (356,628) (48,945) 86,619 (77,893) (48,075) 42,900 100,846
----------- ----------- ---------- ----------- ----------- ---------- ----------
REALIZED AND UNREALIZED LOSS ON
INVESTMENTS:
Net realized gain (loss) on
investments..................... (5,286,150) (3,724,460) (123,878) (1,281,427) (831,447) (981,213) (641,000)
Net realized gain (loss) on
futures contracts............... -- -- 37,075 -- -- -- --
Net realized gain (loss) on
securities sold short........... 555,644 -- -- -- -- -- --
Net realized gain (loss) on
foreign currencies and other
assets and liabilities.......... -- -- -- (1,436) -- -- --
Net change in unrealized
appreciation (depreciation) on
investments..................... 4,916,009 5,450,477 1,117,274 2,366,522 1,515,873 1,959,754 1,220,623
Net change in unrealized
appreciation (depreciation) on
futures contracts............... -- -- 25,507 -- -- -- --
Net change in unrealized
appreciation (depreciation) on
foreign currencies and other
assets and liabilities.......... -- -- -- (153) -- -- --
Net change in unrealized
appreciation (depreciation) on
securities sold short........... 289,279 -- -- -- -- -- --
----------- ----------- ---------- ----------- ----------- ---------- ----------
Net realized and unrealized gain
(loss) on investments, future
contracts, securities sold
short, foreign currencies and
other assets and liabilities.... 474,782 1,726,017 1,055,978 1,083,506 684,426 978,541 579,623
----------- ----------- ---------- ----------- ----------- ---------- ----------
NET INCREASE(DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS...................... $ 118,154 $ 1,677,072 $1,142,597 $ 1,005,613 $ 636,351 $1,021,441 $ 680,469
=========== =========== ========== =========== =========== ========== ==========
*Net of foreign withholding taxes
on dividends of $ -- $ 80 $ -- $ 916 $ -- $ -- $ --
=========== =========== ========== =========== =========== ========== ==========
</Table>
See Notes to Financial Statements
3
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
STATEMENT OF CHANGES IN NET ASSETS
<Table>
<Caption>
BIOTECH/HEALTH FUND TAX MANAGED EQUITY FUND STOCK INDEX FUND
-------------------------- --------------------------- -------------------------
FOR THE SIX FOR THE SIX FOR THE SIX
MONTHS MONTHS MONTHS FOR THE
ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED YEAR
APRIL 30, ENDED APRIL 30, ENDED APRIL 30, ENDED
2003 OCTOBER 31, 2003 OCTOBER 31, 2003 OCTOBER 31,
(UNAUDITED) 2002 (UNAUDITED) 2002 (UNAUDITED) 2002+
------------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss)............. $ (356,628) $ (1,116,235) $ (48,945) $ (393,346) $ 86,619 $ 101,290
Net realized gain (loss) on
investments............................. (5,286,150) (17,583,650) (3,724,460) (15,675,665) 37,075 (1,116,427)
Net realized gain (loss) from capital
gain distribution from underlying
funds................................... -- -- -- -- -- --
Net realized gain (loss) on futures
contracts............................... -- -- -- -- (123,878) (501,587)
Net realized gain (loss) on securities
sold short.............................. 555,644 -- -- -- -- --
Net realized gain (loss) on foreign
currencies and other assets and
liabilities............................. -- -- -- -- -- --
Net change in unrealized appreciation
(depreciation) on investments........... 4,916,009 (5,200,198) 5,450,477 (2,347,140) 1,117,274 (4,194,388)
Net change in unrealized appreciation
(depreciation) on futures contracts..... -- -- -- -- 25,507 73,796
Net change in unrealized appreciation
(depreciation) on foreign currencies and
other assets and liabilities............ -- -- -- -- -- --
Net change in unrealized appreciation
(depreciation) on securities sold
short................................... 289,279 422,091 -- -- -- --
----------- ------------ ------------ ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from operations................. 118,154 (23,477,992) 1,677,072 (18,416,151) 1,142,597 (5,637,316)
----------- ------------ ------------ ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (Class A)..... -- -- -- -- (69,075) (50,367)
From net investment income (Class B)..... -- -- -- -- (33,854) (4,344)
From net investment income (Class II).... -- -- -- -- (5,066) (282)
From net investment income (Class I)..... -- -- -- -- -- --
----------- ------------ ------------ ------------ ----------- -----------
Total distributions to shareholders...... -- -- -- -- (107,995) (54,993)
----------- ------------ ------------ ------------ ----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS (NOTE 8)....... (5,398,517) (9,222,459) (10,987,007) (25,890,226) 1,028,354 3,765,201
----------- ------------ ------------ ------------ ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS.... (5,280,363) (32,700,451) (9,309,935) (44,306,377) 2,062,956 (1,927,108)
NET ASSETS:
Beginning of period........................ 44,297,573 76,998,024 68,719,749 113,026,126 29,002,095 30,929,203
----------- ------------ ------------ ------------ ----------- -----------
End of period.............................. $39,017,210 $ 44,297,573 $ 59,409,814 $ 68,719,749 $31,065,051 $29,002,095
=========== ============ ============ ============ =========== ===========
Accumulated undistributed net investment
income (loss)............................. $ (359,257) $ (2,629) $ (56,214) $ (7,269) $ 66,278 $ 87,654
=========== ============ ============ ============ =========== ===========
</Table>
- ------------------
+ See note 2
See Notes to Financial Statements
4
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
<Table>
<Caption>
SCIENCE & TECHNOLOGY AGGRESSIVE GROWTH
FUND LIFESTAGE FUND
------------------------- -------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED YEAR
APRIL 30, ENDED APRIL 30, ENDED
2003 OCTOBER 31, 2003 OCTOBER 31,
(UNAUDITED) 2002+ (UNAUDITED) 2002+
--------------------------------------------------------
OPERATIONS:
Net investment income (loss).............................. $ (77,893) $ (206,954) $ (48,075) $ 213,896
Net realized gain (loss) on investments................... (1,281,427) (5,035,553) (831,447) (4,812,315)
Net realized gain (loss) from capital gain distribution
from underlying funds.................................... -- -- -- 190,574
Net realized gain (loss) on futures contracts............. -- -- -- --
Net realized gain (loss) on securities sold short......... -- -- -- --
Net realized gain (loss) on foreign currencies and other
assets and liabilities................................... (1,436) (1,525) -- --
Net change in unrealized appreciation (depreciation) on
investments.............................................. 2,366,522 886,939 1,515,873 471,977
Net change in unrealized appreciation (depreciation) on
futures contracts........................................ -- -- -- --
Net change in unrealized appreciation (depreciation) on
foreign currencies and other assets and liabilities...... (153) -- -- --
Net change in unrealized appreciation (depreciation) on
securities sold short.................................... -- -- -- --
----------- ----------- ----------- -----------
Net increase (decrease) in net assets resulting from
operations................................................. 1,005,613 (4,357,093) 636,351 (3,935,868)
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (Class A)...................... -- -- (38,873) (31,219)
From net investment income (Class B)...................... -- -- (59,391) (17,221)
From net investment income (Class II)..................... -- -- (1,665) (344)
From net investment income (Class I)...................... -- -- (87,062) (61,214)
----------- ----------- ----------- -----------
Total distributions to shareholders....................... -- -- (186,991) (109,998)
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS (NOTE 8)...................................... 165,239 (257,676) 838,785 1,241,280
----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS..................... 1,170,852 (4,614,769) 1,288,145 (2,804,586)
NET ASSETS:
Beginning of period......................................... 9,227,375 13,842,144 19,060,270 21,864,856
----------- ----------- ----------- -----------
End of period............................................... $10,398,227 $ 9,227,375 $20,348,415 $19,060,270
=========== =========== =========== ===========
Accumulated undistributed net investment income (loss)...... $ (78,119) $ (226) $ (124,039) $ 111,027
=========== =========== =========== ===========
</Table>
- ------------------
+ See note 2
See Notes to Financial Statements
5
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
<Table>
<Caption>
MODERATE GROWTH CONVERATIVE GROWTH
LIFESTAGE FUND LIFESTAGE FUND
------------------------- -------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED YEAR
APRIL 30, ENDED APRIL 30, ENDED
2003 OCTOBER 31, 2003 OCTOBER 31,
(UNAUDITED) 2002+ (UNAUDITED) 2002+
--------------------------------------------------------
OPERATIONS:
Net investment income (loss).............................. $ 42,900 $ 492,973 $ 100,846 $ 467,516
Net realized gain (loss) on investments................... (981,213) (3,977,340) (641,000) (1,943,093)
Net realized gain (loss) from capital gain distribution
from underlying funds.................................... -- 206,108 -- 110,236
Net realized gain (loss) on futures contracts............. -- -- -- --
Net realized gain (loss) on securities sold short......... -- -- -- --
Net realized gain (loss) on foreign currencies and other
assets and liabilities................................... -- -- -- --
Net change in unrealized appreciation (depreciation) on
investments.............................................. 1,959,754 (688,725) 1,220,623 (255,689)
Net change in unrealized appreciation (depreciation) on
futures contracts........................................ -- -- -- --
Net change in unrealized appreciation (depreciation) on
foreign currencies and other assets and liabilities...... -- -- -- --
Net change in unrealized appreciation (depreciation) on
securities sold short.................................... -- -- -- --
----------- ----------- ----------- -----------
Net increase (decrease) in net assets resulting from
operations................................................. 1,021,441 (3,966,984) 680,469 (1,621,030)
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (Class A)...................... (59,132) (50,695) (99,551) (76,020)
From net investment income (Class B)...................... (105,333) (78,487) (122,535) (127,052)
From net investment income (Class II)..................... (9,927) (4,373) (22,240) (8,928)
From net investment income (Class I)...................... (193,593) (129,438) (150,668) (128,001)
----------- ----------- ----------- -----------
Total distributions to shareholders....................... (367,985) (262,993) (394,994) (340,001)
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS (NOTE 8).................................... 2,628,800 5,131,531 545,665 822,814
----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS..................... 3,282,256 901,554 831,140 (1,138,217)
NET ASSETS:
Beginning of period......................................... 27,634,326 26,732,772 18,279,066 19,417,283
----------- ----------- ----------- -----------
End of period............................................... $30,916,582 $27,634,326 $19,110,206 $18,279,066
=========== =========== =========== ===========
Accumulated undistributed net investment income (loss)...... $ 24,540 $ 349,625 $ 63,874 $ 358,022
=========== =========== =========== ===========
</Table>
- ------------------
+ See note 2
See Notes to Financial Statements
6
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
BIOTECH/HEALTH FUND
NET DIVIDENDS
NET GAIN (LOSS) TOTAL FROM DISTRI- NET
NET ASSET INVEST- ON INVEST- FROM NET BUTIONS ASSET
VALUE, MENT MENTS (BOTH INVEST- INVEST- FROM TOTAL VALUE,
PERIOD BEGINNING INCOME REALIZED AND MENT MENT CAPITAL DISTRI- END OF TOTAL
ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2)
- --------------------- --------- --------- ------------ ---------- --------- -------- -------- -------- ---------
CLASS A
6/14/00-
10/31/00(3)........ $12.50 $(0.02) $ 3.48 $ 3.46 $ -- $ -- $ -- $15.96 27.68%
10/31/01............. 15.96 (0.06) (4.32) (4.38) -- (0.55) (0.55) 11.03 (27.92)
10/31/02............. 11.03 (0.13) (3.28) (3.41) -- -- -- 7.62 (30.92)
4/30/03(8)........... 7.62 (0.05) 0.12 0.07 -- -- -- 7.69 0.92
CLASS B
6/14/00-
10/31/00(3)........ $12.50 $(0.05) $ 3.47 $ 3.42 $ -- $ -- $ -- $15.92 27.36%
10/31/01............. 15.92 (0.14) (4.31) (4.45) -- (0.55) (0.55) 10.92 (28.45)
10/31/02............. 10.92 (0.19) (3.23) (3.42) -- -- -- 7.50 (31.32)
4/30/03(8)........... 7.50 (0.07) 0.11 0.04 -- -- -- 7.54 0.53
CLASS II
6/14/00-
10/31/00(3)........ $12.50 $(0.05) $ 3.48 $ 3.43 $ -- $ -- $ -- $15.93 27.44%
10/31/01............. 15.93 (0.14) (4.31) (4.45) -- (0.55) (0.55) 10.93 (28.43)
10/31/02............. 10.93 (0.19) (3.23) (3.42) -- -- -- 7.51 (31.29)
4/30/03(8)........... 7.51 (0.08) 0.12 0.04 -- -- -- 7.55 0.53
- ---------------------------------------------------------------------------------------------------------------------------------
<Caption>
BIOTECH/HEALTH FUND
RATIO OF NET
NET INVESTMENT
ASSETS RATIO OF INCOME (LOSS)
END OF EXPENSES TO
PERIOD PERIOD TO AVERAGE AVERAGE PORTFOLIO
ENDED (000'S) NET ASSETS NET ASSETS TURNOVER
- --------------------- -------- --------------- ---------------- ---------
CLASS A
6/14/00-
10/31/00(3)........ $30,489 1.55%(4)(5)(6) (0.28)%(4)(5)(6) 112%
10/31/01............. 27,865 1.55(5)(6) (0.50)(5)(6) 333
10/31/02............. 16,092 1.55(5) (1.38)(5) 340
4/30/03(8)........... 14,677 1.55(4)(5)(7) (1.37)(4)(5)(7) 95
CLASS B
6/14/00-
10/31/00(3)........ $23,457 2.20%(4)(5)(6) (1.08)%(4)(5)(6) 112%
10/31/01............. 25,552 2.20(5)(6) (1.18)(5)(6) 333
10/31/02............. 15,757 2.20(5) (2.03)(5) 340
4/30/03(8)........... 14,517 2.20(4)(5)(7) (2.02)(4)(5)(7) 95
CLASS II
6/14/00-
10/31/00(3)........ $20,386 2.20%(4)(5)(6) (1.07)%(4)(5)(6) 112%
10/31/01............. 23,581 2.20(5)(6) (1.17)(5)(6) 333
10/31/02............. 12,448 2.20(5) (2.03)(5) 340
4/30/03(8)........... 9,823 2.20(4)(5)(7) (2.02)(4)(5)(7) 95
- ---------------------
</Table>
(1) Calculated based upon average shares outstanding
(2) Total return is not annualized and does not reflect sales load but does
include expense reimbursements.
(3) Commencement of operations
(4) Annualized
(5) Net of the following expense reimbursements (based on average net assets):
<Table>
<Caption>
10/31/00(4) 10/31/01 10/31/02 4/30/03(4)(8)
----------- --------- --------- -------------
Biotech/Health Fund Class A.......... 0.49% 0.19% 0.20% 0.30%
Biotech/Health Fund Class B.......... 0.96 0.21 0.20 0.33
Biotech/Health Fund Class II......... 1.09 0.20 0.21 0.40
</Table>
(6) The ratio reflects an expense cap which is net of custody credits of less
than 0.01%
(7) The ratio reflects an expense cap which is net of custody credits of 0.02%
or waiver/reimbursements, if applicable
(8) Unaudited
See Notes to Financial Statements
7
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
<Table>
<Caption>
TAX MANAGED EQUITY FUND
NET DIVIDENDS
NET GAIN (LOSS) TOTAL FROM DISTRI- NET
NET ASSET INVEST- ON INVEST- FROM NET BUTIONS ASSET
VALUE, MENT MENTS (BOTH INVEST- INVEST- FROM TOTAL VALUE,
PERIOD BEGINNING INCOME REALIZED AND MENT MENT CAPITAL DISTRI- END OF TOTAL
ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2)
- --------------------- --------- --------- ------------ ---------- --------- -------- -------- -------- ---------
CLASS A
3/01/99-
10/31/99(3)........ $12.50 $ -- $ 1.15 $ 1.15 $ -- $ -- $ -- $13.65 9.20%
10/31/00............. 13.65 (0.02) 0.91 0.89 -- -- -- 14.54 6.52
10/31/01............. 14.54 -- (3.50) (3.50) -- -- -- 11.04 (24.07)
10/31/02............. 11.04 0.01 (2.05) (2.04) -- -- -- 9.00 (18.48)
4/30/03(7)........... 9.00 0.01 0.29 0.30 -- -- -- 9.30 3.33
CLASS B
3/01/99-
10/31/99(3)........ $12.50 $(0.06) $ 1.14 $ 1.08 $ -- $ -- $ -- $13.58 8.64%
10/31/00............. 13.58 (0.11) 0.91 0.80 -- -- -- 14.38 5.89
10/31/01............ 14.38 (0.08) (3.45) (3.53) -- -- -- 10.85 (24.55)
10/31/02............. 10.85 (0.06) (2.00) (2.06) -- -- -- 8.79 (18.99)
4/30/03(7)........... 8.79 (0.01) 0.27 0.26 -- -- -- 9.05 2.96
CLASS II
3/01/99-
10/31/99(3)........ $12.50 $(0.06) $ 1.16 $ 1.10 $ -- $ -- $ -- $13.60 8.80%
10/31/00............. 13.60 (0.11) 0.91 0.80 -- -- -- 14.40 5.88
10/31/01............. 14.40 (0.08) (3.46) (3.54) -- -- -- 10.86 (24.58)
10/31/02............. 10.86 (0.06) (2.00) (2.06) -- -- -- 8.80 (18.97)
4/30/03(7)........... 8.80 (0.01) 0.27 0.26 -- -- -- 9.06 2.95
- ---------------------------------------------------------------------------------------------------------------------------------
<Caption>
TAX MANAGED EQUITY FUND
RATIO OF NET
NET INVESTMENT
ASSETS RATIO OF INCOME (LOSS)
END OF EXPENSES TO
PERIOD PERIOD TO AVERAGE AVERAGE PORTFOLIO
ENDED (000'S) NET ASSETS NET ASSETS TURNOVER
- --------------------- -------- --------------- ---------------- ---------
CLASS A
3/01/99-
10/31/99(3)........ $25,067 1.45%(4)(5)(6) (0.02)%(4)(5)(6) 9%
10/31/00............. 38,802 1.45(5)(6) (0.14)(5)(6) 7
10/31/01............. 28,739 1.45(5)(6) (0.03)(5)(6) 19
10/31/02............. 16,587 1.45(5) 0.09(5) 16
4/30/03(7)........... 14,604 1.45(4)(5) 0.33(4)(5) 4
CLASS B
3/01/99-
10/31/99(3)........ $27,524 2.10%(4)(5)(6) (0.74)%(4)(5)(6) 9%
10/31/00............. 47,972 2.10(5)(6) (0.79)(5)(6) 7
10/31/01............ 40,677 2.10(5)(6) (0.68)(5)(6) 19
10/31/02............. 25,703 2.10(5) (0.56)(5) 16
4/30/03(7)........... 22,499 2.10(4)(5) (0.32)(4)(5) 4
CLASS II
3/01/99-
10/31/99(3)........ $27,884 2.10%(4)(5)(6) (0.75)%(4)(5)(6) 9%
10/31/00............. 51,348 2.10(5)(6) (0.79)(5)(6) 7
10/31/01............. 43,610 2.10(5)(6) (0.68)(5)(6) 19
10/31/02............. 26,430 2.10(5) (0.56)(5) 16
4/30/03(7)........... 22,306 2.10(4)(5) (0.32)(4)(5) 4
- ---------------------
</Table>
(1) Calculated based upon average shares outstanding
(2) Total return is not annualized and does not reflect sales load but does
include expense reimbursements.
(3) Commencement of operations
(4) Annualized
(5) Net of the following expense reimbursements (based on average net assets):
<Table>
<Caption>
10/31/99(4) 10/31/00 10/31/01 10/31/02 4/30/03(4)(7)
----------- --------- --------- --------- -------------
Tax Managed Equity Fund Class A...... 1.07% 0.23% 0.15% 0.21% 0.27%
Tax Managed Equity Fund Class B...... 0.84 0.22 0.15 0.20 0.24
Tax Managed Equity Fund Class II..... 0.83 0.22 0.14 0.21 0.23
</Table>
(6) The ratio reflects an expense cap which is net of custody credits of less
than 0.01% or waiver/reimbursements if applicable
(7) Unaudited
See Notes to Financial Statements
8
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
<Table>
<Caption>
STOCK INDEX FUND
DIVI-
NET DENDS DIS-
NET GAIN (LOSS) TOTAL FROM TRIBU- NET
NET ASSET INVEST- ON INVEST- FROM NET TIONS ASSET
VALUE, MENT MENTS (BOTH INVEST- INVEST- FROM TOTAL VALUE,
PERIOD BEGINNING INCOME REALIZED AND MENT MENT CAPITAL DISTRI- END OF TOTAL
ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2)
- --------------------- --------- --------- ------------ ---------- -------- -------- -------- -------- ---------
CLASS A
11/01/98-10/31/99(3)... $10.00 $ 0.11 $ 2.32 $ 2.43 $(0.11) $ -- $(0.11) $12.32 24.36%
10/31/00............. 12.32 0.14 0.47 0.61 (0.10) (0.08) (0.18) 12.75 4.91
10/31/01............. 12.75 0.09 (3.32) (3.23) (0.13) -- (0.13) 9.39 (25.53)
10/31/02............. 9.39 0.07 (1.53) (1.46) (0.06) -- (0.06) 7.87 (15.67)
4/30/03(6)........... 7.87 0.04 0.29 0.33 (0.07) -- (0.07) 8.13 4.20
CLASS B
11/01/98-10/31/99(3)... $10.00 $ 0.02 $ 2.23 $ 2.25 $(0.02) $ -- $(0.02) $12.23 22.55%
10/31/00............. 12.23 0.05 0.46 0.51 (0.02) (0.08) (0.10) 12.64 4.21
10/31/01............. 12.64 0.02 (3.29) (3.27) (0.04) -- (0.04) 9.33 (25.97)
10/31/02............. 9.33 0.01 (1.53) (1.52) -- -- -- 7.81 (16.28)
4/30/03(6)........... 7.81 0.02 0.28 0.30 (0.01) -- (0.01) 8.10 3.89
CLASS II*
7/17/00-10/31/00(3)... $13.38 $ 0.01 $(0.83) $(0.82) $(0.01) $ -- $(0.01) $12.55 (5.21)%
10/31/01............. 12.55 0.02 (3.26) (3.24) (0.04) -- (0.04) 9.27 (25.92)
10/31/02............. 9.27 0.02 (1.51) (1.49) -- -- -- 7.78 (16.06)
4/30/03(6)........... 7.78 0.02 0.27 0.29 (0.01) -- (0.01) 8.06 3.78
- --------------------------------------------------------------------------------------------------------------------------------
<Caption>
STOCK INDEX FUND
RATIO OF NET
NET INVESTMENT
ASSETS RATIO OF INCOME (LOSS)
END OF EXPENSES TO
PERIOD PERIOD TO AVERAGE AVERAGE PORTFOLIO
ENDED (000'S) NET ASSETS NET ASSETS TURNOVER
- --------------------- -------- ---------- ------------- ---------
CLASS A
11/01/98-10/31/99(3). $ 5,634 0.82%(5) 1.08%(5) 14%
10/31/00............. 8,543 0.78(5) 1.12(5) 2
10/31/01............. 7,639 0.75(5) 0.85(5) 3
10/31/02............. 7,269 0.75(5) 0.80(5) 2
4/30/03(6)........... 8,866 0.75(4)(5) 1.06(4)(5) 1
CLASS B
11/01/98-10/31/99(3). $15,040 1.57%(5) 0.37%(5) 14%
10/31/00............. 24,966 1.49(5) 0.42(5) 2
10/31/01............. 21,905 1.38(5) 0.22(5) 3
10/31/02............. 18,852 1.40(5) 0.15(5) 2
4/30/03(6)........... 19,685 1.40(4)(5) 0.41(4)(5) 1
CLASS II*
7/17/00-10/31/00(3).. $ 500 1.35%(4)(5) 0.30%(4)(5) 2%
10/31/01............. 1,385 1.39(5) 0.15(5) 3
10/31/02............. 2,882 1.40(5) 0.18(5) 2
4/30/03(6)........... 2,514 1.40(4)(5) 0.43(4)(5) 1
- ---------------------
</Table>
(1) Calculated based upon average shares outstanding
(2) Total return is not annualized and does not reflect sales load but does
include expense reimbursements.
(3) Commencement of operations
(4) Annualized
(5) Net of the following expense reimbursements (based on average net assets):
<Table>
<Caption>
10/31/99 10/31/00 10/31/01 10/31/02 4/30/03(4)(6)
--------- --------- --------- --------- -------------
Stock Index Fund Class A............. 0.71% 0.34% 1.10% 0.67% 0.66%
Stock Index Fund Class B............. 0.41 0.34 1.11 0.65 0.63
Stock Index Fund Class II*........... -- 0.40(4) 1.10 1.07 0.82
</Table>
(6) Unaudited
* In conjunction with the reorganization, Class C was redesignated as
Class II. See Note 2 for further discussion.
See Notes to Financial Statements
9
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
<Table>
<Caption>
SCIENCE & TECHNOLOGY FUND
DIVI-
NET DENDS DIS-
NET GAIN (LOSS) TOTAL FROM TRIBU- NET
NET ASSET INVEST- ON INVEST- FROM NET TIONS ASSET
VALUE, MENT MENTS (BOTH INVEST- INVEST- FROM TOTAL VALUE,
PERIOD BEGINNING INCOME REALIZED AND MENT MENT CAPITAL DISTRI- END OF TOTAL
ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2)
- --------------------- --------- --------- ------------ ---------- -------- -------- -------- -------- ---------
CLASS A
3/1/00-10/31/00(3)... $10.00 $(0.04) $(1.88) $(1.92) $ -- $ -- $ -- $ 8.08 (19.20)%
10/31/01............. 8.08 (0.04) (4.86) (4.90) -- -- -- 3.18 (60.64)
10/31/02............. 3.18 (0.03) (0.97) (1.00) -- -- -- 2.18 (31.45)
4/30/03(7)........... 2.18 (0.01) 0.25 0.24 -- -- -- 2.42 11.01
CLASS B
3/1/00-10/31/00(3)... $10.00 $(0.07) $(1.90) $(1.97) $ -- $ -- $ -- $ 8.03 (19.70)%
10/31/01............. 8.03 (0.07) (4.82) (4.89) -- -- -- 3.14 (60.90)
10/31/02............. 3.14 (0.05) (0.95) (1.00) -- -- -- 2.14 (31.85)
4/30/03(7)........... 2.14 (0.02) 0.25 0.23 -- -- -- 2.37 10.75
CLASS II*
7/12/00-10/31/00(3)... $ 8.48 $(0.03) $(0.63) $(0.66) $ -- $ -- $ -- $ 7.82 (7.78)%
10/31/01............. 7.82 (0.07) (4.69) (4.76) -- -- -- 3.06 (60.87)
10/31/02............. 3.06 (0.05) (0.93) (0.98) -- -- -- 2.08 (32.03)
4/30/03(7)........... 2.08 (0.02) 0.25 0.23 -- -- -- 2.31 11.06
CLASS I
3/1/00-10/31/00(3)... $10.00 $(0.03) $(1.89) $(1.92) $ -- $ -- $ -- $ 8.08 (19.20)%
10/31/01............. 8.08 (0.04) (4.85) (4.89) -- -- -- 3.19 (60.52)
10/31/02............. 3.19 (0.03) (0.97) (1.00) -- -- -- 2.19 (31.35)
4/30/03(7)........... 2.19 (0.01) 0.26 0.25 -- -- -- 2.44 11.42
- --------------------------------------------------------------------------------------------------------------------------------
<Caption>
SCIENCE & TECHNOLOGY FUND
RATIO OF NET
NET INVESTMENT
ASSETS RATIO OF INCOME (LOSS)
END OF EXPENSES TO
PERIOD PERIOD TO AVERAGE AVERAGE PORTFOLIO
ENDED (000'S) NET ASSETS NET ASSETS TURNOVER
- --------------------- -------- ----------- ------------- ---------
CLASS A
3/1/00-10/31/00(3)... $ 4,623 1.24%(4)(5) (0.64)%(4)(5) 120%
10/31/01............. 2,673 1.34(5) (0.89)(5) 129
10/31/02............. 2,068 1.50(5)(6) (1.19)(5)(6) 82
4/30/03(7)........... 2,378 1.50(4)(5) (1.12)(4)(5) 23
CLASS B
3/1/00-10/31/00(3)... $15,840 1.91%(4)(5) (1.37)%(4)(5) 120%
10/31/01............. 9,408 1.99(5) (1.55)(5) 129
10/31/02............. 6,440 2.15(5)(6) (1.84)(5)(6) 82
4/30/03(7)........... 7,218 2.15(4)(5) (1.77)(4)(5) 23
CLASS II*
7/12/00-10/31/00(3).. $ 1,065 1.71%(4)(5) (1.11)%(4)(5) 120%
10/31/01............. 940 2.01(5) (1.57)(5) 129
10/31/02............. 574 2.15(5)(6) (1.84)(5)(6) 82
4/30/03(7)........... 640 2.15(4)(5) (1.78)(4)(5) 23
CLASS I
3/1/00-10/31/00(3)... $ 539 1.20%(4)(5) (0.48)%(4)(5) 120%
10/31/01............. 821 1.28(5) (0.85)(5) 129
10/31/02............. 146 1.40(5)(6) (1.08)(5)(6) 82
4/30/03(7)........... 163 1.40(4)(5) (1.02)(4)(5) 23
- ---------------------
</Table>
(1) Calculated based upon average shares outstanding
(2) Total return is not annualized and does not reflect sales load but does
include expense reimbursements and expense reductions.
(3) Commencement of operations
(4) Annualized
(5) Net of the following expense reimbursements (based on average net assets):
<Table>
<Caption>
10/31/00(4) 10/31/01 10/31/02 4/30/03(4)(7)
----------- --------- --------- -------------
Science & Technology Fund Class A.... 0.68% 2.10% 1.38% 1.86%
Science & Technology Fund Class B.... 0.68 2.11 1.21 1.74
Science & Technology Fund 0.66 2.10 1.81 2.83
Class II*..........................
Science & Technology Fund Class I.... 0.68 2.10 4.66 5.14
</Table>
(6) Includes expense reimbursements, but excludes expense reductions. If the
expense reductions had been applied, the ratio of expenses to average net
assets would have been lower by 0.01% for Class A, B, II and 0.02% for
Class I.
(7) Unaudited
* In conjunction with the reorganization, Class C was redesignated as
Class II. See Note 2 for further discussion.
See Notes to Financial Statements
10
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
<Table>
<Caption>
AGGRESSIVE GROWTH LIFESTAGE FUND
DIVI-
NET DENDS DIS-
NET GAIN (LOSS) TOTAL FROM TRIBU- NET
NET ASSET INVEST- ON INVEST- FROM NET TIONS ASSET
VALUE, MENT MENTS (BOTH INVEST- INVEST- FROM TOTAL VALUE,
PERIOD BEGINNING INCOME REALIZED AND MENT MENT CAPITAL DISTRI- END OF TOTAL
ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2)
- --------------------- --------- --------- ------------ ---------- -------- -------- -------- -------- ---------
CLASS A
11/1/98-10/31/99(3)... $10.00 $0.07 $ 1.91 $ 1.98 $(0.06) $ -- $(0.06) $11.92 19.65%
10/31/00............. 11.92 1.39 0.53 1.92 (0.98) (0.15) (1.13) 12.71 16.27
10/31/01............. 12.71 0.51 (3.28) (2.77) (0.50) (1.62) (2.12) 7.82 (24.89)
10/31/02............. 7.82 0.10 (1.39) (1.29) (0.07) -- (0.07) 6.46 (16.68)
4/30/03(7)........... 6.46 (0.01) 0.23 0.22 (0.09) -- (0.09) 6.59 3.39
CLASS B
11/1/98-10/31/99(3)... $10.00 $0.06 $ 1.89 $ 1.95 $(0.05) $ -- $(0.05) $11.90 19.52%
10/31/00............. 11.90 1.46 0.48 1.94 (0.96) (0.15) (1.11) 12.73 16.30
10/31/01............. 12.73 0.44 (3.28) (2.84) (0.46) (1.62) (2.08) 7.81 (25.39)
10/31/02............. 7.81 0.05 (1.40) (1.35) (0.01) -- (0.01) 6.45 (17.31)
4/30/03(7)........... 6.45 (0.03) 0.23 0.20 (0.04) -- (0.04) 6.61 3.10
CLASS II*
8/10/00-10/31/00(3)... $13.03 $0.86 $(1.09) $(0.23) $ -- $ -- $ -- $12.80 (1.77)%
10/31/01............. 12.80 0.44 (3.29) (2.85) (0.46) (1.62) (2.08) 7.87 (25.33)
10/31/02............. 7.87 0.04 (1.39) (1.35) (0.01) -- (0.01) 6.51 (17.18)
4/30/03(7)........... 6.51 (0.03) 0.23 0.20 (0.04) -- (0.04) 6.67 3.07
CLASS I
11/1/98-10/31/99(3)... $10.00 $0.07(3) $ 1.90 $ 1.97 $(0.06) $ -- $(0.06) $11.91 19.71%
10/31/00............. 11.91 1.59 0.34 1.93 (0.96) (0.15) (1.11) 12.73 16.22
10/31/01............. 12.73 0.46 (3.23) (2.77) (0.50) (1.62) (2.12) 7.84 (24.81)
10/31/02............. 7.84 0.10 (1.38) (1.28) (0.08) -- (0.08) 6.48 (16.52)
4/30/03(7)........... 6.48 -- 0.21 0.21 (0.09) -- (0.09) 6.60 3.34
- --------------------------------------------------------------------------------------------------------------------------------
<Caption>
AGGRESSIVE GROWTH LIFESTAGE FUND
RATIO OF NET
NET RATIO OF INVESTMENT
ASSETS EXPENSES INCOME (LOSS)
END OF TO AVERAGE TO
PERIOD PERIOD NET AVERAGE PORTFOLIO
ENDED (000'S) ASSETS(5) NET ASSETS(5) TURNOVER
- --------------------- -------- ---------- ------------- ---------
CLASS A
11/1/98-10/31/99(3).. $ 1,929 0.10% 0.63% 9%
10/31/00............. 4,064 0.12 10.81 53
10/31/01............. 3,417 0.20 5.62 86
10/31/02............. 2,872 0.20 1.33 158
4/30/03(7)........... 3,049 0.45(4)(6) (0.19)(4)(6) 18
CLASS B
11/1/98-10/31/99(3).. $ 4,915 0.10% 0.66% 9%
10/31/00............. 13,450 0.24 11.51 53
10/31/01............. 12,695 0.85 4.82 86
10/31/02............. 9,992 0.85 0.70 158
4/30/03(7)........... 10,187 1.10(4)(6) (0.84)(4)(6) 18
CLASS II*
8/10/00-10/31/00(3).. $ 184 0.73%(4) 39.30%(4) 53%
10/31/01............. 235 0.85 4.82 86
10/31/02............. 286 0.85 0.56 158
4/30/03(7)........... 365 1.10(4)(6) (0.84)(4)(6) 18
CLASS I
11/1/98-10/31/99(3).. $ 1,547 0.10% 0.62% 9%
10/31/00............. 5,004 0.15 12.62 53
10/31/01............. 5,518 0.10 5.12 86
10/31/02............. 5,910 0.10 1.36 158
4/30/03(7)........... 6,748 0.35(4)(6) (0.09)(4)(6) 18
- ---------------------
</Table>
(1) Calculated based upon average shares outstanding
(2) Total return is not annualized and does not reflect sales load but does
include expense reimbursements.
(3) Commencement of operations
(4) Annualized
(5) Amounts do not include the expenses of the underlying funds
(6) Net of the following expense reimbursements (based on average net assets):
<Table>
<Caption>
4/30/03(4)(7)
-------------
Aggressive Growth LifeStage Fund 0.56%
Class A............................
Aggressive Growth LifeStage Fund 0.40
Class B............................
Aggressive Growth LifeStage Fund 1.87
Class II...........................
Aggressive Growth LifeStage Fund 0.36
Class I............................
</Table>
(7) Unaudited
* In conjunction with the reorganization, Class C was redesignated as
Class II. See Note 2 for further discussion.
See Notes to Financial Statements
11
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
<Table>
<Caption>
MODERATE GROWTH LIFESTAGE FUND
DIVI-
NET DENDS DIS-
NET GAIN (LOSS) TOTAL FROM TRIBU- NET
NET ASSET INVEST- ON INVEST- FROM NET TIONS ASSET
VALUE, MENT MENTS (BOTH INVEST- INVEST- FROM TOTAL VALUE,
PERIOD BEGINNING INCOME REALIZED AND MENT MENT CAPITAL DISTRI- END OF TOTAL
ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2)
- --------------------- --------- --------- ------------ ---------- -------- -------- -------- -------- ---------
CLASS A
11/1/98-10/31/99(3)... $10.00 $ 0.14 $ 1.39 $ 1.53 $(0.13) $ -- $(0.13) $11.40 15.20%
10/31/00............. 11.40 0.99 0.50 1.49 (0.73) (0.09) (0.82) 12.07 13.27
10/31/01............. 12.07 0.55 (2.21) (1.66) (0.38) (1.15) (1.53) 8.88 (15.06)
10/31/02............. 8.88 0.18 (1.30) (1.12) (0.11) -- (0.11) 7.65 (12.77)
4/30/03(7)........... 7.65 0.02 0.25 0.27 (0.12) -- (0.12) 7.80 3.60
CLASS B
11/1/98-10/31/99(3)... $10.00 $ 0.12 $ 1.41 $ 1.53 $(0.11) $ -- $(0.11) $11.42 15.26%
10/31/00............. 11.42 1.02 0.47 1.49 (0.74) (0.09) (0.83) 12.08 13.22
10/31/01............. 12.08 0.47 (2.19) (1.72) (0.34) (1.15) (1.49) 8.87 (15.56)
10/31/02............. 8.87 0.12 (1.30) (1.18) (0.05) -- (0.05) 7.64 (13.38)
4/30/03(7)........... 7.64 -- 0.25 0.25 (0.07) -- (0.07) 7.82 3.27
CLASS II*
7/12/00-10/31/00(3)... $12.77 $ 0.73 $(1.03) $(0.30) $(0.36) $ -- $(0.36) $12.11 (2.30)%
10/31/01............. 12.11 0.28 (2.02) (1.74) (0.34) (1.15) (1.49) 8.88 (15.69)
10/31/02............. 8.88 0.10 (1.28) (1.18) (0.05) -- (0.05) 7.65 (13.37)
4/30/03(7)........... 7.65 -- 0.25 0.25 (0.07) -- (0.07) 7.83 3.26
CLASS I
11/1/98-10/31/99(3)... $10.00 $ 0.15 $ 1.38 $ 1.53 $(0.14) $ -- $(0.14) $11.39 15.35%
10/31/00............. 11.39 1.16 0.32 1.48 (0.72) (0.09) (0.81) 12.06 13.10
10/31/01............. 12.06 0.47 (2.12) (1.65) (0.38) (1.15) (1.53) 8.88 (14.97)
10/31/02............. 8.88 0.17 (1.27) (1.10) (0.13) -- (0.13) 7.65 (12.66)
4/30/03(7)........... 7.65 0.02 0.25 0.27 (0.13) -- (0.13) 7.79 3.58
- --------------------------------------------------------------------------------------------------------------------------------
<Caption>
MODERATE GROWTH LIFESTAGE FUND
RATIO OF NET
NET INVESTMENT
ASSETS RATIO OF INCOME
END OF EXPENSES TO
PERIOD PERIOD TO AVERAGE AVERAGE PORTFOLIO
ENDED (000'S) NET ASSETS(5) NET ASSETS(5) TURNOVER
- --------------------- -------- ------------- ------------- ---------
CLASS A
11/1/98-10/31/99(3).. $ 1,918 0.10% 1.33% 11%
10/31/00............. 3,396 0.12 8.27 47
10/31/01............. 3,876 0.20 5.68 79
10/31/02............. 3,697 0.20 2.10 156
4/30/03(7)........... 4,363 0.45(4)(6) 0.55(4)(6) 23
CLASS B
11/1/98-10/31/99(3).. $ 5,553 0.10% 1.40% 11%
10/31/00............. 11,843 0.23 8.53 47
10/31/01............. 13,412 0.85 4.83 79
10/31/02............. 12,036 0.85 1.44 156
4/30/03(7)........... 12,221 1.10(4)(6) (0.10)(4)(6) 23
CLASS II*
7/12/00-10/31/00(3).. $ 183 0.80%(4) 19.82%(4) 47%
10/31/01............. 738 0.85 2.96 79
10/31/02............. 970 0.85 1.22 156
4/30/03(7)........... 1,270 1.10(4)(6) (0.10)(4)(6) 23
CLASS I
11/1/98-10/31/99(3).. $ 1,537 0.10% 1.42% 11%
10/31/00............. 5,439 0.15 9.91 47
10/31/01............. 8,707 0.10 4.90 79
10/31/02............. 10,932 0.10 2.07 156
4/30/03(7)........... 13,062 0.35(4)(6) 0.65(4)(6) 23
- ---------------------
</Table>
(1) Calculated based upon average shares outstanding
(2) Total return is not annualized and does not reflect sales load but does
include expense reimbursements.
(3) Commencement of operations
(4) Annualized
(5) Amounts do not include the expenses of the underlying funds
(6) Net of the following expense reimbursements (based on average net assets):
<Table>
<Caption>
4/30/03(4)(7)
-------------
Moderate Growth LifeStage Fund 0.22%
Class A............................
Moderate Growth LifeStage Fund 0.18
Class B............................
Moderate Growth LifeStage Fund 0.48
Class II...........................
Moderate Growth LifeStage Fund 0.09
Class I............................
</Table>
(7) Unaudited
* In conjunction with the reorganization, Class C was redesignated as
Class II. See Note 2 for further discussion.
See Notes to Financial Statements
12
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
<Table>
<Caption>
CONSERVATIVE GROWTH LIFESTAGE FUND
DIVI-
NET DENDS DIS-
NET GAIN (LOSS) TOTAL FROM TRIBU- NET
NET ASSET INVEST- ON INVEST- FROM NET TIONS ASSET
VALUE, MENT MENTS (BOTH INVEST- INVEST- FROM TOTAL VALUE,
PERIOD BEGINNING INCOME REALIZED AND MENT MENT CAPITAL DISTRI- END OF TOTAL
ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME GAINS BUTIONS PERIOD RETURN(2)
- --------------------- --------- --------- ------------ ---------- -------- -------- -------- -------- ---------
CLASS A
11/1/98-10/31/99(3)... $10.00 $0.21 $ 1.02 $ 1.23 $(0.20) $ -- $(0.20) $11.03 12.30%
10/31/00............. 11.03 0.87 0.39 1.26 (0.60) (0.10) (0.70) 11.59 11.61
10/31/01............. 11.59 0.55 (1.40) (0.85) (0.37) (0.99) (1.36) 9.38 (7.91)
10/31/02............. 9.38 0.25 (1.00) (0.75) (0.20) -- (0.20) 8.43 (8.18)
4/30/03(7)........... 8.43 0.06 0.25 0.31 (0.20) -- (0.20) 8.54 3.81
CLASS B
11/1/98-10/31/99(3)... $10.00 $0.18 $ 1.05 $ 1.23 $(0.17) $ -- $(0.17) $11.06 12.21%
10/31/00............. 11.06 0.81 0.45 1.26 (0.59) (0.10) (0.69) 11.63 11.66
10/31/01............. 11.63 0.50 (1.43) (0.93) (0.33) (0.99) (1.32) 9.38 (8.60)
10/31/02............. 9.38 0.20 (1.01) (0.81) (0.13) -- (0.13) 8.44 (8.80)
4/30/03(7)........... 8.44 0.03 0.26 0.29 (0.15) -- (0.15) 8.58 3.45
CLASS II*
7/20/00-10/31/00(3)... $11.95 $0.74 $(0.73) $ 0.01 $(0.27) $ -- $(0.27) $11.69 0.06%
10/31/01............. 11.69 0.34 (1.31) (0.97) (0.33) (0.99) (1.32) 9.40 (8.93)
10/31/02............. 9.40 0.16 (0.97) (0.81) (0.13) -- (0.13) 8.46 (8.78)
4/30/03(7)........... 8.46 0.03 0.27 0.30 (0.15) -- (0.15) 8.61 3.56
CLASS I
11/1/98-10/31/99(3)... $10.00 $0.21 $ 1.02 $ 1.23 $(0.20) $ -- $(0.20) $11.03 12.24%
10/31/00............. 11.03 0.91 0.33 1.24 (0.58) (0.10) (0.68) 11.59 11.54
10/31/01............. 11.59 0.54 (1.38) (0.84) (0.37) (0.99) (1.36) 9.39 (7.80)
10/31/02............. 9.39 0.26 (0.99) (0.73) (0.22) -- (0.22) 8.44 (8.05)
4/30/03(7)........... 8.44 0.06 0.26 0.32 (0.21) -- (0.21) 8.55 3.91
- --------------------------------------------------------------------------------------------------------------------------------
<Caption>
CONSERVATIVE GROWTH LIFESTAGE FUND
RATIO OF NET
NET INVESTMENT
ASSETS RATIO OF INCOME (LOSS)
END OF EXPENSES TO
PERIOD PERIOD TO AVERAGE AVERAGE PORTFOLIO
ENDED (000'S) NET ASSETS(5) NET ASSETS(5) TURNOVER
- --------------------- -------- ------------- ------------- ---------
CLASS A
11/1/98-10/31/99(3).. $ 1,790 0.10% 2.01% 10%
10/31/00............. 3,420 0.12 7.62 45
10/31/01............. 3,459 0.20 5.63 85
10/31/02............. 3,699 0.20 2.79 199
4/30/03(7)........... 4,362 0.45(4)(6) 1.35(4)(6) 29
CLASS B
11/1/98-10/31/99(3).. $ 5,880 0.10% 2.11% 10%
10/31/00............. 10,354 0.23 7.15 45
10/31/01............. 9,908 0.85 5.08 85
10/31/02............. 7,417 0.85 2.19 199
4/30/03(7)........... 6,685 1.10(4)(6) 0.71(4)(6) 29
CLASS II*
7/20/00-10/31/00(3).. $ 150 0.86%(4) 22.43%(4) 45%
10/31/01............. 642 0.85 3.43 85
10/31/02............. 1,223 0.85 1.88 199
4/30/03(7)........... 1,571 1.10(4)(6) 0.69(4)(6) 29
CLASS I
11/1/98-10/31/99(3).. $ 1,508 0.10% 2.01% 10%
10/31/00............. 4,484 0.15 8.15 45
10/31/01............. 5,409 0.10 5.46 85
10/31/02............. 5,941 0.10 2.87 199
4/30/03(7)........... 6,492 0.35(4)(6) 1.45(4)(6) 29
- ---------------------
</Table>
(1) Calculated based upon average shares outstanding
(2) Total return is not annualized and does not reflect sales load but does
include expense reimbursements.
(3) Commencement of operations
(4) Annualized
(5) Amounts do not include the expenses of the underlying funds
(6) Net of the following expense reimbursements (based on average net assets):
<Table>
<Caption>
4/30/03(4)(7)
-------------
Conservative Growth LifeStage Fund 0.30%
Class A............................
Conservative Growth LifeStage Fund 0.28
Class B............................
Conservative Growth LifeStage Fund 0.51
Class II...........................
Conservative Growth LifeStage Fund 0.22
Class I............................
</Table>
(7) Unaudited
* In conjunction with the reorganization, Class C was redesignated as
Class II. See Note 2 for further discussion.
See Notes to Financial Statements
13
<Page>
SUNAMERICA BIOTECH/HEALTH FUND
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED)
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
COMMON STOCK -- 90.2%
BIOMEDICAL -- 9.0%
Amgen, Inc.+..................... 20,000 $ 1,226,200
Genentech, Inc.+................. 30,000 1,139,700
IDEC Pharmaceuticals Corp.(1)+... 35,000 1,146,250
---------------
3,512,150
---------------
BIOTECHNOLOGY -- 16.2%
Biomarin Pharmaceutical, Inc.+... 200,000 2,196,000
Genta, Inc.+..................... 200,000 1,496,000
Medicines Co.+................... 50,000 1,027,500
Neurocrine Biosciences, Inc.+.... 35,000 1,583,750
---------------
6,303,250
---------------
DISTRIBUTION -- 1.5%
Caremark Rx, Inc.+............... 30,000 597,300
---------------
GENOMICS -- 2.2%
Introgen Therapeutics, Inc.+..... 75,000 183,750
Invitrogen Corp.+................ 20,000 654,000
---------------
837,750
---------------
HEALTH MAINTENANCE ORGANIZATIONS -- 6.9%
Anthem, Inc.+.................... 30,000 2,059,200
Centene Corp.+................... 20,000 640,700
---------------
2,699,900
---------------
HEALTH SERVICES -- 3.0%
Odyssey Healthcare, Inc.+........ 37,500 969,000
United Surgical Partners
International, Inc.+........... 10,000 185,300
---------------
1,154,300
---------------
MEDICAL DEVICES -- 9.7%
Integra LifeSciences
Holdings+(1)................... 135,000 3,603,150
Quinton Cardiology Systems,
Inc.+.......................... 32,700 193,584
---------------
3,796,734
---------------
MEDICAL DRUGS -- 14.1%
Allergan, Inc.................... 20,000 1,405,000
Celgene Corp.+................... 50,000 1,330,500
OSI Pharmaceuticals, Inc.+....... 100,000 2,100,000
Telik, Inc.+..................... 50,000 657,500
---------------
5,493,000
---------------
MEDICAL SUPPLIES -- 2.4%
Charles River Laboratories
International, Inc.+........... 35,000 950,250
---------------
</Table>
<Table>
<Caption>
SHARES/
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 3)
PHARMACEUTICALS -- 14.7%
Biovail Corp+.................... 10,000 $ 361,500
Ilex Oncology, Inc.+............. 32,500 435,175
Kos Pharmaceuticals, Inc.+....... 50,000 1,020,000
MGI Pharma, Inc.+................ 80,000 1,155,200
Millennium Pharmaceuticals,
Inc.+.......................... 100,000 1,100,000
Pharmaceutical Resources, Inc.+.. 20,000 879,000
Tanox, Inc.+..................... 50,000 790,000
---------------
5,740,875
---------------
THERAPEUTICS -- 10.5%
Cell Therapeutics, Inc.+......... 100,000 900,000
CV Therapeutics, Inc.+........... 90,000 1,798,200
Forest Laboratories, Inc.+(1).... 18,000 930,960
Gilead Sciences, Inc.+........... 10,000 461,400
---------------
4,090,560
---------------
TOTAL INVESTMENT SECURITIES
(cost $35,172,992)............... 35,176,069
---------------
REPURCHASE AGREEMENT -- 14.2%
State Street Bank & Trust Co.
Joint Repurchase Agreement
Account (Note 3)
(cost $5,558,000).............. $ 5,558 5,558,000
---------------
TOTAL INVESTMENTS
(cost $40,730,992*)............ 40,734,069
---------------
COMMON STOCK-SHORT POSITIONS -- (5.5%)
DISTRIBUTION -- (2.8%)
Cardinal Health, Inc............. (20,000) (1,105,600)
---------------
HEALTH SERVICES -- (1.3%)
Vistacare, Inc.+................. (25,000) (506,250)
---------------
PHARMACEUTICALS -- (1.4%)
Pharmaceutical Product
Development, Inc.+............. (20,000) (523,400)
---------------
TOTAL COMMON STOCK-SHORT POSITIONS -- (5.5%)
(proceeds $2,081,847)............ (2,135,250)
---------------
Other assets less liabilities...... 1.1 418,391
---------------
NET ASSETS --...................... 100.0% $ 39,017,210
===============
</Table>
- ------------
<Table>
* See Note 7
+ Non-income producing securities
(1) The security or a portion thereof represents
collateral for securities sold short.
</Table>
See Notes to Financial Statements
14
<Page>
SUNAMERICA TAX MANAGED EQUITY FUND
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED)
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
COMMON STOCK -- 98.8%
AEROSPACE & MILITARY TECHNOLOGY -- 0.6%
United Technologies Corp......... 6,000 $ 370,860
---------------
APPAREL & TEXTILES -- 0.7%
Jones Apparel Group, Inc.+....... 15,000 427,800
---------------
BANKS -- 5.2%
Bank One Corp.................... 25,500 919,275
Mellon Financial Corp............ 12,000 317,400
U.S. Bancorp..................... 59,831 1,325,257
Wachovia Corp.................... 13,400 512,014
---------------
3,073,946
---------------
BROADCASTING & MEDIA -- 3.7%
News Corp., Ltd. ADR............. 14,600 412,888
Tribune Co....................... 19,000 930,620
Viacom, Inc., Class B+........... 19,000 824,790
---------------
2,168,298
---------------
BUSINESS SERVICES -- 0.7%
Accenture, Ltd., Class A+........ 26,000 416,520
---------------
CHEMICALS -- 0.8%
Air Products and Chemicals,
Inc............................ 10,500 452,235
---------------
COMPUTER SOFTWARE -- 4.9%
First Data Corp.................. 5,000 196,150
Microsoft Corp................... 93,200 2,383,124
Oracle Corp.+.................... 30,000 356,400
---------------
2,935,674
---------------
COMPUTERS & BUSINESS EQUIPMENT -- 5.7%
Dell Computer Corp.+............. 19,000 549,290
Hewlett-Packard Co............... 10,000 163,000
Intel Corp....................... 54,700 1,006,480
International Business
Machines Corp.................. 19,800 1,681,020
---------------
3,399,790
---------------
CONGLOMERATE -- 5.0%
General Electric Co.............. 77,800 2,291,210
Tyco International, Ltd.......... 43,500 678,600
---------------
2,969,810
---------------
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
ELECTRONICS -- 2.9%
Altera Corp.+.................... 18,000 $ 284,580
Applied Materials, Inc.+......... 14,000 204,400
Johnson Controls, Inc............ 12,300 1,011,552
Linear Technology Corp........... 7,000 241,290
---------------
1,741,822
---------------
ENERGY SERVICES -- 1.2%
Baker Hughes, Inc................ 25,000 700,000
---------------
ENERGY SOURCES -- 6.5%
ChevronTexaco Corp............... 21,000 1,319,010
Exxon Mobil Corp................. 71,620 2,521,024
---------------
3,840,034
---------------
FINANCIAL SERVICES -- 10.0%
Capital One Financial Corp....... 10,000 418,700
Charles Schwab & Co., Inc........ 17,000 146,710
CIT Group, Inc.+................. 8,000 162,960
Citigroup, Inc................... 57,333 2,250,320
Fannie Mae....................... 19,000 1,375,410
Goldman Sachs Group, Inc......... 13,002 986,852
Washington Mutual, Inc........... 15,350 606,325
---------------
5,947,277
---------------
FOOD, BEVERAGE & TOBACCO -- 3.9%
Altria Group, Inc................ 18,800 578,288
Coca-Cola Co..................... 31,400 1,268,560
PepsiCo, Inc..................... 10,300 445,784
---------------
2,292,632
---------------
FOREST PRODUCTS -- 1.3%
Temple-Inland, Inc............... 17,400 788,220
---------------
HOUSEHOLD PRODUCTS -- 4.6%
Colgate-Palmolive Co............. 5,000 285,850
Gillette Co...................... 30,200 919,590
Procter & Gamble Co.............. 17,300 1,554,405
---------------
2,759,845
---------------
</Table>
15
<Page>
SUNAMERICA TAX MANAGED EQUITY FUND
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
COMMON STOCK -- (CONTINUED)
INSURANCE -- 5.3%
Allstate Corp.................... 25,000 $ 944,750
Ambac Financial Group, Inc....... 21,400 1,248,690
American International Group,
Inc.#.......................... 11,580 671,061
Travelers Property Casualty
Corp., Class A+................ 17,211 279,335
---------------
3,143,836
---------------
MACHINERY -- 2.5%
Danaher Corp..................... 11,000 758,780
Deere & Co....................... 16,400 722,092
---------------
1,480,872
---------------
MEDICAL PRODUCTS -- 4.0%
Becton, Dickinson and Co......... 14,000 495,600
Guidant Corp.+................... 15,000 584,850
Johnson & Johnson................ 23,444 1,321,304
---------------
2,401,754
---------------
METALS & MINING -- 1.0%
Alcoa, Inc....................... 24,928 571,599
---------------
PHARMACEUTICALS -- 9.8%
Amgen, Inc.+..................... 13,000 797,030
Bristol-Myers Squibb Co.......... 19,100 487,814
Eli Lilly and Co................. 19,400 1,238,108
Pfizer, Inc...................... 67,805 2,085,004
Schering-Plough Corp............. 18,700 338,470
Wyeth............................ 20,000 870,600
---------------
5,817,026
---------------
RETAIL STORES -- 7.3%
Home Depot, Inc.................. 28,550 803,111
Target Corp...................... 25,700 859,408
TJX Cos, Inc..................... 40,500 779,625
Wal-Mart Stores, Inc............. 33,800 1,903,616
---------------
4,345,760
---------------
<Caption>
SHARES/
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 3)
TELECOMMUNICATIONS -- 7.1%
Cisco Systems, Inc.+............. 70,400 $ 1,058,816
Comcast Corp., Class A+.......... 31,700 952,902
QUALCOMM, Inc.................... 8,000 255,120
SBC Communications, Inc.......... 30,900 721,824
Verizon Communications, Inc...... 33,230 1,242,137
---------------
4,230,799
---------------
TRANSPORTATION -- 1.7%
Union Pacific Corp............... 16,500 982,080
---------------
UTILITIES -- 2.4%
DTE Energy Co.................... 18,000 725,760
Pinnacle West Capital Corp....... 21,000 697,620
---------------
1,423,380
---------------
TOTAL INVESTMENT SECURITIES
(cost $71,913,168)............... 58,681,869
---------------
SHORT-TERM INVESTMENTS -- 1.4%
Time Deposit with State Street
Bank & Trust Co. 0.10% due
5/01/03 (cost $875,000)........ $ 875 875,000
---------------
TOTAL INVESTMENTS --
(cost $72,788,168*).............. 100.2% 59,556,869
Liabilities in excess of other
assets........................... (0.2) (147,055)
------------ ---------------
NET ASSETS --...................... 100.0% $ 59,409,814
============ ===============
</Table>
- ------------
<Table>
* See Note 7
+ Non-income producing securities
# Security represents an investment in an affiliated
company. See Note 6
ADR American Depository Receipt
</Table>
See Notes to Financial Statements
16
<Page>
SUNAMERICA STOCK INDEX FUND
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED)
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
COMMON STOCK -- 95.0%
AEROSPACE & MILITARY TECHNOLOGY -- 1.6%
Boeing Co............................. 2,930 $ 79,930
General Dynamics Corp................. 700 43,449
Goodrich Corp......................... 410 5,769
Honeywell International, Inc.......... 2,980 70,328
Lockheed Martin Corp.................. 1,590 79,580
Northrop Grumman Corp................. 640 56,288
Raytheon Co........................... 1,420 42,501
Rockwell Collins, Inc................. 630 13,469
United Technologies Corp.............. 1,640 101,368
-------------
492,682
-------------
APPAREL & TEXTILES -- 0.4%
Cintas Corp........................... 590 21,181
Jones Apparel Group, Inc.+............ 450 12,834
Liz Claiborne, Inc.................... 370 12,036
Nike, Inc., Class B................... 920 49,248
Reebok International, Ltd.+........... 210 6,523
V.F. Corp............................. 380 14,949
-------------
116,771
-------------
AUTOMOTIVE -- 0.8%
AutoNation, Inc.+..................... 1,010 13,989
AutoZone, Inc.+....................... 340 27,475
Cooper Tire & Rubber Co............... 260 3,661
Dana Corp............................. 520 4,831
Delphi Corp........................... 1,950 16,380
Ford Motor Co......................... 6,400 65,920
General Motors Corp................... 1,950 70,297
Goodyear Tire & Rubber Co............. 610 3,489
Harley Davidson, Inc.................. 1,060 47,106
Snap-on, Inc.......................... 200 5,870
Visteon Corp.......................... 450 3,155
-------------
262,173
-------------
BANKS -- 5.5%
AmSouth Bancorp....................... 1,240 26,102
Bank of America Corp.................. 5,240 388,022
Bank of New York Co., Inc............. 2,670 70,621
Bank One Corp......................... 4,060 146,363
BB&T Corp............................. 1,640 53,464
Charter One Financial, Inc............ 790 22,950
Comerica, Inc......................... 610 26,541
Fifth Third Bancorp................... 2,020 99,566
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
BANKS -- (CONTINUED)
First Tennessee National Corp......... 440 $ 19,272
FleetBoston Financial Corp............ 3,660 97,063
Huntington Bancshares, Inc............ 820 15,957
KeyCorp............................... 1,480 35,683
Marshall & Ilsley Corp................ 760 22,359
Mellon Financial Corp................. 1,500 39,675
National City Corp.................... 2,130 63,815
North Fork Bancorp., Inc.............. 560 18,122
Northern Trust Corp................... 770 27,027
PNC Financial Services
Group, Inc.......................... 990 43,461
Regions Financial Corp................ 770 25,957
State Street Corp..................... 1,160 40,635
SunTrust Banks, Inc................... 990 56,648
Synovus Financial Corp................ 1,060 20,638
U.S. Bancorp.......................... 6,680 147,962
Union Planters Corp................... 690 19,693
Wachovia Corp......................... 4,740 181,115
Zions Bancorp......................... 320 15,766
-------------
1,724,477
-------------
BROADCASTING & MEDIA -- 3.2%
AOL Time Warner, Inc.+................ 15,590 213,271
Clear Channel Communications, Inc.+... 2,140 83,695
Dow Jones & Co., Inc.................. 290 11,484
Gannett Co., Inc...................... 930 70,420
Interpublic Group of Cos., Inc........ 1,350 15,390
Knight Ridder, Inc.................... 290 18,720
McGraw Hill Cos., Inc................. 680 39,705
Meredith Corp......................... 170 7,347
New York Times Co., Class A........... 530 24,581
Omnicom Group, Inc.................... 660 40,854
Scientific Atlanta, Inc............... 530 8,613
Tribune Co............................ 1,060 51,919
Univision Communications, Inc., Class
A+.................................. 800 24,224
Viacom, Inc., Class B+................ 6,140 266,538
Walt Disney Co........................ 7,120 132,859
-------------
1,009,620
-------------
BUSINESS SERVICES -- 1.1%
Allied Waste Industries, Inc.+........ 730 6,059
Avery Dennison Corp................... 380 20,144
Ball Corp............................. 200 11,232
</Table>
17
<Page>
SUNAMERICA STOCK INDEX FUND
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
COMMON STOCK -- (CONTINUED)
BUSINESS SERVICES -- (CONTINUED)
Bemis Co., Inc........................ 190 $ 8,675
Cendant Corp.+........................ 3,590 51,265
Convergys Corp.+...................... 610 9,894
Equifax, Inc.......................... 500 11,595
Fluor Corp............................ 280 9,680
Genuine Parts Co...................... 610 19,502
McDermott International, Inc.+........ 220 715
Pactiv Corp.+......................... 550 11,286
Paychex, Inc.......................... 1,310 40,793
Pitney Bowes, Inc..................... 830 29,141
Robert Half International, Inc.+...... 600 9,768
RR Donnelley & Sons Co................ 400 8,064
Sealed Air Corp.+..................... 290 12,426
W.W. Grainger, Inc.................... 320 14,768
Waste Management, Inc................. 2,080 45,178
Waters Corp.+......................... 450 10,805
-------------
330,990
-------------
CHEMICALS -- 1.5%
Air Products and Chemicals, Inc....... 790 34,025
Ashland, Inc.......................... 240 7,116
Dow Chemical Co....................... 3,180 103,795
du Pont de (E.I.) Nemours & Co........ 3,470 147,579
Eastman Chemical Co................... 270 8,243
Ecolab, Inc........................... 450 22,990
Engelhard Corp........................ 450 11,048
Great Lakes Chemical Corp............. 180 4,421
Hercules, Inc.+....................... 380 3,857
Monsanto Co........................... 910 15,834
PPG Industries, Inc................... 590 28,621
Praxair, Inc.......................... 560 32,525
Rohm and Haas Co...................... 770 25,495
Sigma-Aldrich Corp.................... 250 12,455
Vulcan Materials Co................... 350 12,240
-------------
470,244
-------------
COMMUNICATION EQUIPMENT -- 0.3%
LSI Logic Corp.+...................... 1,300 6,968
Lucent Technologies, Inc.+............ 13,640 24,552
Motorola, Inc......................... 8,020 63,438
Tellabs, Inc.+........................ 1,440 8,899
-------------
103,857
-------------
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
COMPUTER SOFTWARE -- 5.4%
Adobe Systems, Inc.................... 810 $ 27,994
Autodesk, Inc......................... 400 6,224
Automatic Data Processing, Inc........ 2,090 70,287
BMC Software, Inc.+................... 810 12,085
Citrix Systems, Inc.+................. 600 11,376
Computer Associates
International, Inc.................. 2,000 32,480
Computer Sciences Corp.+.............. 650 21,417
Compuware Corp.+...................... 1,320 5,795
Electronic Data Systems Corp.......... 1,660 30,129
First Data Corp....................... 2,620 102,783
Fiserv, Inc.+......................... 670 19,725
Intuit, Inc.+......................... 720 27,922
Mercury Interactive Corp.+............ 300 10,182
Microsoft Corp.@...................... 37,320 954,272
NCR Corp.+............................ 340 7,453
Novell, Inc.+......................... 1,280 3,520
Nvidia Corp.+......................... 550 7,848
Oracle Corp.+......................... 18,380 218,354
Parametric Technology Corp.+.......... 920 3,036
PeopleSoft, Inc.+..................... 1,090 16,383
Siebel Systems, Inc.+................. 1,690 14,652
SunGard Data Systems, Inc.+........... 990 21,285
Unisys Corp.+......................... 1,140 11,856
VERITAS Software Corp.+............... 1,440 31,694
-------------
1,668,752
-------------
COMPUTERS & BUSINESS EQUIPMENT -- 5.0%
Apple Computer, Inc.+................. 1,260 17,892
Dell Computer Corp.+.................. 9,000 260,190
EMC Corp.+............................ 7,670 69,720
Gateway, Inc.+........................ 1,130 3,254
Hewlett-Packard Co.................... 10,650 173,595
Intel Corp............................ 23,100 425,040
International Business
Machines Corp....................... 5,890 500,061
Lexmark International
Group, Inc.+........................ 440 32,785
Network Appliance, Inc.+.............. 1,180 15,670
Sun Microsystems, Inc.+............... 11,140 36,762
Xerox Corp.+.......................... 2,560 25,242
-------------
1,560,211
-------------
</Table>
18
<Page>
SUNAMERICA STOCK INDEX FUND
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
COMMON STOCK -- (CONTINUED)
CONGLOMERATE -- 4.6%
3M Co................................. 1,360 $ 171,415
General Electric Co................... 34,700 1,021,915
ITT Industries, Inc................... 320 18,656
Schlumberger Ltd...................... 2,030 85,118
Textron, Inc.......................... 470 13,860
Tyco International, Ltd............... 6,960 108,576
-------------
1,419,540
-------------
EDUCATION -- 0.1%
Apollo Group, Inc., Class A+.......... 610 33,061
-------------
ELECTRONICS -- 2.4%
Advanced Micro Devices, Inc.+......... 1,200 8,928
Agilent Technologies, Inc.+........... 1,630 26,113
Altera Corp.+......................... 1,330 21,027
American Power
Conversion Corp.+................... 680 10,594
Analog Devices, Inc.+................. 1,270 42,062
Applera Corp. -- Applied Biosystems
Group............................... 730 12,797
Applied Materials, Inc.+.............. 5,760 84,096
Applied Micro Circuits Corp.+......... 1,060 4,749
Broadcom Corp., Class A+.............. 960 17,174
Emerson Electric Co................... 1,470 74,529
Jabil Circuit, Inc.+.................. 690 12,903
Johnson Controls, Inc................. 310 25,494
KLA-Tencor Corp.+..................... 660 27,060
Linear Technology Corp................ 1,090 37,572
Maxim Integrated Products, Inc.+...... 1,130 44,398
Micron Technology, Inc.+.............. 2,120 18,020
Millipore Corp.+...................... 170 5,805
Molex, Inc............................ 670 15,638
National Semiconductor Corp.+......... 630 11,800
Novellus Systems, Inc.+............... 520 14,581
PMC-Sierra, Inc.+..................... 580 4,785
Power-One, Inc.+...................... 280 1,638
QLogic Corp.+......................... 330 14,517
Rockwell Automation, Inc.............. 650 14,820
Sanmina-SCI Corp.+.................... 1,780 8,544
Solectron Corp.+...................... 2,880 9,187
Symbol Technologies, Inc.............. 800 8,744
Tektronix Inc.+....................... 300 5,631
Teradyne, Inc.+....................... 640 7,424
Texas Instruments, Inc................ 6,040 111,680
Thomas & Betts Corp.+................. 200 3,162
Xilinx, Inc.+......................... 1,180 31,943
-------------
737,415
-------------
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
ENERGY SERVICES -- 0.6%
Baker Hughes, Inc..................... 1,180 $ 33,040
BJ Services Co.+...................... 550 20,081
Devon Energy Corp..................... 800 37,800
Dynegy, Inc., Class A................. 1,300 5,720
Halliburton Co........................ 1,520 32,543
Nabors Industries, Ltd.+.............. 510 19,992
Rowan Cos., Inc....................... 330 6,765
Transocean Sedco Forex, Inc.+......... 1,110 21,145
-------------
177,086
-------------
ENERGY SOURCES -- 4.9%
Amerada Hess Corp..................... 310 13,997
Anadarko Petroleum Corp............... 870 38,628
Apache Corp........................... 560 32,060
Burlington Resources, Inc............. 700 32,417
ChevronTexaco Corp.................... 3,730 234,281
ConocoPhillips........................ 2,360 118,708
El Paso Corp.......................... 2,090 15,675
EOG Resources, Inc.................... 400 14,952
Exxon Mobil Corp...................... 23,470 826,144
Kerr-Mcgee Corp....................... 350 14,738
Keyspan Corp.......................... 550 18,628
Kinder Morgan, Inc.................... 430 20,219
Marathon Oil Corp..................... 1,090 24,819
Nicor, Inc............................ 150 4,509
NiSource, Inc......................... 870 16,443
Noble Corp.+.......................... 470 14,547
Occidental Petroleum Corp............. 1,320 39,402
Peoples Energy Corp................... 120 4,662
Sempra Energy......................... 720 19,325
Sunoco, Inc........................... 270 10,047
Unocal Corp........................... 900 24,930
-------------
1,539,131
-------------
ENTERTAINMENT PRODUCTS -- 0.3%
Brunswick Corp........................ 310 6,768
Eastman Kodak Co...................... 1,020 30,508
Electronic Arts, Inc.+................ 500 29,635
Hasbro, Inc........................... 600 9,600
Mattel, Inc........................... 1,530 33,262
-------------
109,773
-------------
FINANCIAL SERVICES -- 9.2%
American Express Co................... 4,580 173,399
Bear Stearns Cos., Inc................ 350 23,394
</Table>
19
<Page>
SUNAMERICA STOCK INDEX FUND
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
COMMON STOCK -- (CONTINUED)
FINANCIAL SERVICES -- (CONTINUED)
Capital One Financial Corp............ 770 $ 32,240
Charles Schwab & Co., Inc............. 4,690 40,475
Citigroup, Inc........................ 17,930 703,752
Concord EFS, Inc.+.................... 1,770 24,479
Countrywide Credit
Industries, Inc..................... 440 29,744
Deluxe Corp........................... 200 8,802
Fannie Mae............................ 3,470 251,193
Federated Investors, Inc., Class B.... 380 10,370
Franklin Resources, Inc............... 900 31,392
Freddie Mac........................... 2,430 140,697
Golden West Financial Corp............ 540 40,727
Goldman Sachs Group, Inc.............. 1,650 125,235
H & R Block, Inc...................... 620 23,944
J.P. Morgan Chase & Co................ 6,960 204,276
Janus Capital Group, Inc.............. 780 10,842
Lehman Brothers Holdings, Inc......... 850 53,524
MBNA Corp............................. 4,460 84,294
Merrill Lynch & Co., Inc.............. 3,020 123,971
Moodys Corp........................... 530 25,594
Morgan Stanley........................ 3,780 169,155
Providian Financial Corp.+............ 1,010 7,444
SLM Corp.............................. 540 60,480
South Trust Corp...................... 1,210 32,502
T. Rowe Price Group, Inc.............. 430 13,124
Washington Mutual, Inc................ 3,300 130,350
Wells Fargo & Co...................... 5,900 284,734
-------------
2,860,133
-------------
FOOD, BEVERAGE & TOBACCO -- 4.7%
Adolph Coors Co., Class B............. 130 6,959
Altria Group, Inc..................... 7,210 221,780
Anheuser-Busch Cos., Inc.............. 2,990 149,141
Archer-Daniels-Midland Co............. 2,250 24,930
Brown-Forman Corp., Class B........... 210 16,073
Campbell Soup Co...................... 1,430 31,503
Coca-Cola Co.......................... 8,650 349,460
Coca-Cola Enterprises, Inc............ 1,570 30,599
ConAgra Foods, Inc.................... 1,870 39,270
General Mills, Inc.................... 1,290 58,192
H.J. Heinz & Co....................... 1,230 36,752
Hershey Foods Corp.................... 480 31,320
Kellogg Co............................ 1,420 46,491
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
FOOD, BEVERAGE & TOBACCO -- (CONTINUED)
McCormick & Co., Inc.................. 490 $ 12,147
Pepsi Bottling Group, Inc............. 980 20,129
PepsiCo, Inc.......................... 6,020 260,546
R.J. Reynolds Tobacco
Holdings, Inc....................... 300 8,451
Sara Lee Corp......................... 2,730 45,809
UST, Inc.............................. 590 18,485
Wm. Wrigley Jr. Co.................... 790 44,801
-------------
1,452,838
-------------
FOREST PRODUCTS -- 0.5%
Boise Cascade Corp.................... 200 4,594
Georgia-Pacific Corp.................. 870 13,433
International Paper Co................ 1,670 59,702
Louisiana Pacific Corp.+.............. 370 2,990
MeadWestvaco Corp..................... 700 16,513
Plum Creek Timber Co., Inc............ 650 15,119
Temple-Inland, Inc.................... 190 8,607
Weyerhaeuser Co....................... 760 37,688
-------------
158,646
-------------
HEALTH SERVICES -- 1.1%
Aetna, Inc............................ 530 26,394
HCA, Inc.............................. 1,790 57,459
Health Management Associates, Inc.,
Class A+............................ 830 14,160
Humana, Inc.+......................... 570 6,298
Manor Care, Inc.+..................... 340 6,613
McKesson, Inc......................... 1,020 28,295
Quest Diagnostics, Inc.+.............. 370 22,107
Quintiles Transnational Corp.+........ 410 5,761
Tenet Healthcare Corp.+............... 1,650 24,486
UnitedHealth Group, Inc............... 1,060 97,658
Wellpoint Health Networks, Inc.,Class
A+.................................. 520 39,489
-------------
328,720
-------------
HOME BUILDING -- 0.1%
Centex Corp........................... 220 14,524
KB HOME............................... 170 8,376
Pulte Homes, Inc...................... 210 12,178
-------------
35,078
-------------
</Table>
20
<Page>
SUNAMERICA STOCK INDEX FUND
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
COMMON STOCK -- (CONTINUED)
HOUSEHOLD PRODUCTS -- 2.8%
Alberto-Culver Co., Class B........... 200 $ 9,856
Avon Products, Inc.................... 820 47,700
Clorox Co............................. 770 34,819
Colgate-Palmolive Co.................. 1,880 107,480
Gillette Co........................... 3,640 110,838
International Flavors &
Fragrances, Inc..................... 330 10,487
Kimberly-Clark Corp................... 1,790 89,088
Leggett & Platt, Inc.................. 680 14,042
Newell Rubbermaid, Inc................ 930 28,346
Procter & Gamble Co................... 4,510 405,224
Tupperware Corp....................... 200 2,772
-------------
860,652
-------------
INSURANCE -- 4.9%
ACE, Ltd.............................. 920 30,434
AFLAC, Inc............................ 1,800 58,878
Allstate Corp......................... 2,450 92,585
Ambac Financial Group, Inc............ 370 21,589
American International
Group, Inc.#........................ 9,100 527,345
Anthem, Inc.+......................... 490 33,634
Aon Corp.............................. 1,080 23,933
Chubb Corp............................ 600 31,734
CIGNA Corp............................ 490 25,627
Cincinnati Financial Corp............. 560 20,636
Hartford Financial Services
Group, Inc.......................... 890 36,276
Jefferson Pilot Corp.................. 500 20,045
John Hancock Financial
Services, Inc....................... 1,010 29,310
Lincoln National Corp................. 620 19,815
Loews Corp............................ 650 26,825
Marsh & McLennan Cos., Inc............ 1,870 89,162
MBIA, Inc............................. 510 22,797
MetLife, Inc.......................... 2,440 70,101
MGIC Investment Corp.................. 350 15,911
Principal Financial Group, Inc.+...... 1,120 32,592
Progressive Corp...................... 760 51,680
Prudential Financial, Inc.+........... 1,970 62,981
SAFECO Corp........................... 480 18,485
St. Paul Cos., Inc.................... 790 27,129
Torchmark Corp........................ 410 15,888
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
INSURANCE -- (CONTINUED)
Travelers Property Casualty Corp.,
Class B+............................ 3,510 $ 57,037
UnumProvident Corp.................... 840 9,660
XL Capital, Ltd., Class A............. 470 38,681
-------------
1,510,770
-------------
INTERNET CONTENT -- 0.5%
eBay, Inc.+........................... 1,080 100,191
Sabre Holdings Corp.+................. 500 10,455
Yahoo!, Inc.+......................... 2,060 51,047
-------------
161,693
-------------
INTERNET SOFTWARE -- 0.1%
Symantec Corp.+....................... 520 22,854
TMP Worldwide, Inc.+.................. 390 6,540
-------------
29,394
-------------
LEISURE & TOURISM -- 0.7%
Carnival Corp......................... 2,190 60,422
Delta Air Lines, Inc.................. 430 5,500
Harrah's Entertainment, Inc.+......... 390 15,362
Hilton Hotels Corp.................... 1,310 17,449
International Game Technology+........ 300 25,890
Marriott International, Inc.,
Class A............................. 820 29,446
Southwest Airlines Co................. 2,700 43,092
Starwood Hotels & Resorts Worldwide,
Inc................................. 700 18,788
-------------
215,949
-------------
MACHINERY -- 1.1%
Caterpillar, Inc...................... 1,200 63,120
Cooper Industries, Ltd., Class A...... 330 12,243
Crane Co.............................. 210 4,101
Cummins, Inc.......................... 150 4,067
Danaher Corp.......................... 530 36,559
Deere & Co............................ 830 36,545
Dover Corp............................ 710 20,405
Eaton Corp............................ 250 20,517
Illinois Tool Works, Inc.............. 1,070 68,459
Ingersoll-Rand Company, Ltd., Class
A................................... 590 26,007
Navistar International Corp., Inc.+... 240 6,696
PACCAR, Inc........................... 400 23,364
Pall Corp............................. 430 9,082
</Table>
21
<Page>
SUNAMERICA STOCK INDEX FUND
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
COMMON STOCK -- (CONTINUED)
MACHINERY -- (CONTINUED)
Parker-Hannifin Corp.................. 410 $ 16,679
Thermo Electron Corp.+................ 570 10,357
-------------
358,201
-------------
MEDICAL PRODUCTS -- 4.0%
Bausch & Lomb, Inc.................... 190 6,680
Baxter International, Inc............. 2,070 47,610
Becton, Dickinson and Co.............. 890 31,506
Biomet, Inc........................... 900 27,414
Boston Scientific Corp.+.............. 1,420 61,131
C.R. Bard, Inc........................ 180 11,408
Chiron Corp.+......................... 650 26,540
Genzyme Corp.+........................ 750 30,210
Guidant Corp.+........................ 1,070 41,719
IMS Health, Inc....................... 850 13,090
Johnson & Johnson..................... 10,360 583,890
MedImmune, Inc.+...................... 880 31,038
Medtronic, Inc........................ 4,250 202,895
PerkinElmer, Inc...................... 440 4,365
St. Jude Medical, Inc.+............... 620 32,525
Stryker Corp.......................... 690 46,237
Zimmer Holdings, Inc.+................ 680 31,892
-------------
1,230,150
-------------
METALS & MINING -- 0.5%
Alcoa, Inc............................ 2,950 67,643
Allegheny Technologies, Inc........... 280 1,162
Freeport-McMoRan Copper & Gold, Inc.,
Class B+............................ 510 8,828
Newmont Mining Corp................... 1,400 37,828
Nucor Corp............................ 270 11,030
Phelps Dodge Corp.+................... 310 9,669
United States Steel Corp.............. 360 5,155
Worthington Industries, Inc........... 300 4,029
-------------
145,344
-------------
PHARMACEUTICALS -- 8.9%
Abbott Laboratories................... 5,450 221,434
Allergan, Inc......................... 450 31,613
AmerisourceBergen Corp................ 380 21,983
Amgen, Inc.+.......................... 4,490 275,282
Biogen, Inc.+......................... 520 19,755
Bristol-Myers Squibb Co............... 6,760 172,650
Cardinal Health, Inc.................. 1,580 87,342
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
PHARMACEUTICALS -- (CONTINUED)
Eli Lilly and Co...................... 3,920 $ 250,174
Forest Laboratories, Inc.+............ 1,270 65,684
King Pharmaceuticals, Inc.+........... 840 10,592
Merck & Co., Inc...................... 7,830 455,550
Pfizer, Inc........................... 27,804 854,973
Schering-Plough Corp.................. 5,120 92,672
Watson Pharmaceuticals, Inc.+......... 370 10,756
Wyeth................................. 4,620 201,109
-------------
2,771,569
-------------
REAL ESTATE INVESTMENT TRUSTS -- 0.3%
Apartment Investment & Management
Co.................................. 330 12,461
Equity Office Properties Trust........ 1,440 37,397
Equity Residential.................... 950 24,614
Simon Property Group , Inc............ 640 23,501
-------------
97,973
-------------
RESTAURANTS -- 0.5%
Darden Restaurants, Inc............... 600 10,506
McDonald's Corp....................... 4,430 75,753
Starbucks Corp.+...................... 1,350 31,712
Wendys International, Inc............. 400 11,616
Yum! Brands, Inc.+.................... 1,030 25,441
-------------
155,028
-------------
RETAIL STORES -- 7.4%
Albertson's, Inc...................... 1,320 26,215
American Greetings Corp., Class A+.... 230 3,349
American Standard Cos., Inc.+......... 250 17,798
Bed Bath & Beyond, Inc.+.............. 1,030 40,695
Best Buy Co., Inc.+................... 1,120 38,730
Big Lots, Inc.+....................... 410 5,133
Black & Decker Corp................... 270 11,138
Circuit City Stores-Circuit City
Group............................... 730 4,183
Costco Wholesale Corp.+............... 1,590 55,062
CVS Corp.............................. 1,370 33,168
Dillards, Inc., Class A............... 300 4,194
Dollar General Corp................... 1,160 16,866
Family Dollar Stores, Inc............. 600 20,514
Federated Department Stores, Inc.+.... 660 20,209
Fortune Brands, Inc................... 520 25,168
</Table>
22
<Page>
SUNAMERICA STOCK INDEX FUND
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
COMMON STOCK -- (CONTINUED)
RETAIL STORES -- (CONTINUED)
Gap, Inc.............................. 3,080 $ 51,220
Home Depot, Inc....................... 8,110 228,134
J.C. Penney Co., Inc. (Holding Co.)... 940 16,036
Kohl's Corp.+......................... 1,180 67,024
Kroger Co.+........................... 2,660 38,038
Limited, Inc.......................... 1,820 26,463
Lowe's Cos., Inc...................... 2,720 119,381
Masco Corp............................ 1,720 36,240
May Department Stores Co.............. 1,010 21,836
Maytag Corp........................... 270 5,627
Nordstrom, Inc........................ 470 8,145
Office Depot, Inc.+................... 1,080 13,673
RadioShack Corp....................... 590 13,989
Safeway, Inc.+........................ 1,540 25,595
Sears, Roebuck & Co................... 1,100 31,174
Sherwin-Williams Co................... 520 14,498
Stanley Works......................... 310 7,449
Staples, Inc.+........................ 1,650 31,416
SUPERVALU, Inc........................ 470 7,741
Sysco Corp............................ 2,280 65,504
Target Corp........................... 3,170 106,005
Tiffany & Co.......................... 510 14,147
TJX Cos, Inc.......................... 1,830 35,227
Toys "R" Us, Inc.+.................... 740 7,585
Wal-Mart Stores, Inc.................. 15,390 866,765
Walgreen Co........................... 3,570 110,170
Whirlpool Corp........................ 240 12,838
Winn-Dixie Stores, Inc................ 490 6,140
-------------
2,310,482
-------------
TELECOMMUNICATIONS -- 5.4%
ADC Telecommunications, Inc.+......... 2,800 6,686
Alltel Corp........................... 1,090 51,077
Andrew Corp.+......................... 340 2,608
AT&T Wireless Services, Inc.+......... 9,450 61,047
Avaya, Inc.+.......................... 1,300 5,070
CenturyTel, Inc....................... 500 14,725
CIENA Corp.+.......................... 1,510 7,354
Cisco Systems, Inc.+.................. 24,800 372,992
Citizens Communications Co.+.......... 980 10,711
Comcast Corp., Class A+............... 8,050 256,876
Comverse Technology, Inc.+............ 660 8,626
Corning, Inc.+........................ 4,180 22,656
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
TELECOMMUNICATIONS -- (CONTINUED)
JDS Uniphase Corp.+................... 4,940 $ 15,956
Nextel Communications, Inc., Class
A+.................................. 3,580 52,948
QUALCOMM, Inc......................... 2,750 87,698
Qwest Communications International,
Inc.+............................... 5,910 22,281
SBC Communications, Inc............... 11,580 270,509
Sprint Corp. (FON Group).............. 3,120 35,911
Sprint Corp. (PCS Group )+............ 3,480 12,180
Verizon Communications, Inc........... 9,540 356,605
-------------
1,674,516
-------------
TRANSPORTATION -- 1.5%
Burlington Northern Santa Fe Corp..... 1,310 36,889
CSX Corp.............................. 750 23,985
FedEx Corp............................ 1,040 62,275
Norfolk Southern Corp................. 1,360 28,846
Ryder System, Inc..................... 220 5,465
Union Pacific Corp.................... 890 52,973
United Parcel Service, Inc.,
Class B............................. 3,920 243,510
-------------
453,943
-------------
UTILITIES -- 3.1%
AES Corp.+............................ 1,900 11,419
Allegheny Energy, Inc................. 440 3,652
Ameren Corp........................... 560 22,949
American Electric Power Co., Inc...... 1,360 35,877
AT&T Corp............................. 2,690 45,864
BellSouth Corp........................ 6,490 165,430
Calpine Corp.+........................ 1,320 7,088
CenterPoint Energy, Inc............... 1,060 8,374
Cinergy Corp.......................... 590 20,143
CMS Energy Corp....................... 500 3,115
Consolidated Edison, Inc.............. 750 29,152
Constellation Energy Group, Inc....... 570 16,690
Dominion Resources, Inc............... 1,070 63,322
DTE Energy Co......................... 580 23,386
Duke Energy Corp...................... 3,110 54,705
Edison International+................. 1,140 16,633
Entergy Corp.......................... 770 35,890
Exelon Corp........................... 1,130 59,935
FirstEnergy Corp...................... 1,040 35,079
FPL Group, Inc........................ 640 38,957
</Table>
23
<Page>
SUNAMERICA STOCK INDEX FUND
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
<Table>
<Caption>
SHARES/
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 3)
COMMON STOCK -- (CONTINUED)
UTILITIES -- (CONTINUED)
Mirant Corp.+......................... 1,410 $ 4,667
PG&E Corp.+........................... 1,420 21,272
Pinnacle West Capital Corp............ 320 10,630
PPL Corp.............................. 570 20,634
Progress Energy, Inc.................. 830 34,677
Public Service Enterprise
Group, Inc.......................... 780 30,007
Southern Co........................... 2,490 72,434
TECO Energy, Inc...................... 610 6,582
TXU Corp.............................. 1,120 22,310
Williams Cos., Inc.................... 1,800 12,510
Xcel Energy, Inc...................... 1,390 18,793
-------------
952,176
-------------
TOTAL INVESTMENT SECURITIES
(cost $39,527,735).................... 29,519,038
-------------
SHORT-TERM INVESTMENTS -- 0.4%
United States Treasury Bills 1.09% due
6/19/03@............................ $ 10 $ 9,985
United States Treasury Bills 1.11% due
5/22/93@............................ 10 9,994
United States Treasury Bills 1.12% due
5/29/03@............................ 100 99,913
United States Treasury Bills 1.13% due
5/22/03@............................ 10 9,993
-------------
TOTAL SHORT-TERM INVESTMENTS
(cost $129,885)....................... 129,885
-------------
</Table>
<Table>
<Caption>
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 3)
REPURCHASE AGREEMENT -- 4.5%
Agreement with State Street Bank &
Trust Co., bearing interest at
1.21%, dated 04/30/ 03, to be
repurchased 05/01/03 in the amount
of $1,389,047 and collateralized by
$1,430,000 of Federal Home Loan Bank
Note, bearing interest at 1.41%, due
03/08/04 and having an approximate
value of $1,434,369
(cost $1,389,000)@.................. 1,389 1,389,000
---------------
TOTAL INVESTMENTS --
(cost $41,046,620*)................... 99.9% 31,037,923
Other assets less liabilities........... 0.1 27,128
-------------- ---------------
NET ASSETS --........................... 100.0% $ 31,065,051
============== ===============
</Table>
- ------------
* See Note 7
+ Non-income producing securities
# Security represents an investment in an affiliated company. See Note 6
@ The security or a portion thereof represents collateral for open futures
contracts.
<Table>
<Caption>
OPEN FUTURES CONTRACTS
- -------------------------------------------------------------------------------------------------------------------
NUMBER OF VALUE AT VALUE AS OF UNREALIZED
CONTRACT DESCRIPTION EXPIRATION DATE TRADE DATE APRIL 30, 2003 APPRECIATION
- -------------------------------------------------------------------------------------------------------------------
34 Long S&P 500 Mini Index June 2003 $1,448,275 $1,557,370 $109,095
========
</Table>
See Notes to Financial Statements
24
<Page>
SUNAMERICA SCIENCE & TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED)
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
COMMON STOCK -- 97.9%
BROADCASTING & MEDIA -- 4.9%
AOL Time Warner, Inc.+......... 15,100 $ 206,568
Clear Channel Communications,
Inc.+........................ 1,300 50,843
Univision Communications, Inc.,
Class A+..................... 1,200 36,336
USA Networks, Inc.+............ 2,300 68,885
Viacom, Inc., Class B+......... 3,400 147,594
---------------
510,226
---------------
BUSINESS SERVICES -- 2.0%
Accenture, Ltd., Class A+...... 6,000 96,120
Paychex, Inc................... 3,500 108,990
---------------
205,110
---------------
CHEMICALS -- 0.3%
Cabot Microelectronics Corp.+.. 600 25,932
---------------
COMMUNICATION EQUIPMENT -- 0.7%
Intersil Corp., Class A+....... 1,500 27,750
Marvell Technology Group,
Ltd.+........................ 1,700 39,234
---------------
66,984
---------------
COMPUTER SOFTWARE -- 32.1%
Adobe Systems, Inc............. 6,300 217,728
Cadence Design Systems, Inc.+.. 6,400 73,152
Certegy, Inc.+................. 4,100 102,459
DST Systems, Inc.+............. 2,300 70,610
First Data Corp................ 9,750 382,493
Fiserv, Inc.+.................. 6,000 176,640
Informatica Corp.+............. 7,800 50,934
Intuit, Inc.+.................. 6,000 232,680
Mercury Interactive Corp.+..... 6,700 227,398
Microsoft Corp................. 32,600 833,582
Oracle Corp.+.................. 7,000 83,160
PeopleSoft, Inc.+.............. 8,000 120,240
SAP AG......................... 700 71,849
Siebel Systems, Inc.+.......... 18,200 157,794
SunGard Data Systems, Inc.+.... 3,600 77,400
Synopsys, Inc.+................ 2,900 141,056
VERITAS Software Corp.+........ 14,500 319,145
---------------
3,338,320
---------------
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
COMPUTERS & BUSINESS EQUIPMENT -- 10.1%
Brocade Communications Systems,
Inc.+........................ 7,200 $ 41,544
Dell Computer Corp.+........... 17,400 503,034
EMC Corp.+..................... 2,900 26,361
Intel Corp..................... 5,800 106,720
International Business
Machines Corp................ 2,000 169,800
Lexmark International Group,
Inc.+........................ 1,300 96,863
Network Appliance, Inc.+....... 4,300 57,104
Seagate Technology+............ 4,200 50,778
---------------
1,052,204
---------------
ELECTRONICS -- 21.2%
Agere Systems, Inc.+........... 12,000 21,480
Altera Corp.+.................. 2,900 45,849
Analog Devices, Inc.+.......... 8,600 284,832
Applied Materials, Inc.+....... 18,800 274,480
ASML Holding NV+............... 1,400 12,334
Celestica, Inc.+............... 3,000 34,680
Flextronics International,
Ltd.+........................ 5,500 48,125
KLA-Tencor Corp.+.............. 4,300 176,300
Linear Technology Corp......... 2,400 82,728
Maxim Integrated Products,
Inc.+........................ 7,200 282,888
Microchip Technology, Inc.+.... 6,300 130,977
Novellus Systems, Inc.+........ 4,900 137,396
QLogic Corp.+.................. 4,250 186,957
Samsung Electronics Co., Ltd... 550 138,066
Sanmina-SCI Corp.+............. 8,600 41,280
Taiwan Semiconductor
Manufacturing Co., Ltd.
ADR+......................... 11,700 97,929
Texas Instruments, Inc......... 8,100 149,769
Xilinx, Inc.+.................. 2,300 62,261
---------------
2,208,331
---------------
ENTERTAINMENT PRODUCTS -- 1.3%
Electronic Arts, Inc.+......... 2,300 136,321
---------------
FINANCIAL SERVICES -- 1.9%
Concord EFS, Inc.+............. 14,500 200,535
---------------
</Table>
25
<Page>
SUNAMERICA SCIENCE & TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
COMMON STOCK -- (CONTINUED)
INTERNET CONTENT -- 1.0%
Internet Security
Systems, Inc.+............... 2,200 $ 28,864
Yahoo!, Inc.+.................. 2,900 71,862
---------------
100,726
---------------
INTERNET SOFTWARE -- 3.0%
Networks Associates, Inc.+..... 6,500 74,295
Symantec Corp.+................ 2,300 101,085
VeriSign, Inc.+................ 11,350 140,967
---------------
316,347
---------------
MACHINERY -- 0.4%
Cognex Corp.+.................. 2,000 43,780
---------------
MEDICAL PRODUCTS -- 0.3%
MedImmune, Inc.+............... 900 31,743
---------------
PHARMACEUTICALS -- 2.4%
Bristol-Myers Squibb Co........ 2,100 53,634
Cephalon, Inc.+................ 1,300 53,092
Eli Lilly and Co............... 450 28,719
Genentech, Inc.+............... 700 26,593
Pfizer, Inc.................... 1,500 46,125
Schering-Plough Corp........... 1,000 18,100
Wyeth.......................... 600 26,118
---------------
252,381
---------------
REGISTERED INVESTMENT COMPANIES -- 5.6%
T Rowe Price Resources Investor
Fund......................... 586,872 586,872
---------------
<Caption>
SHARES/
PRINCIPAL AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 3)
TELECOMMUNICATIONS -- 10.7%
CIENA Corp.+................... 8,100 $ 39,447
Cisco Systems, Inc.+........... 37,100 557,984
Comcast Corp., Class A+........ 2,900 87,174
JDS Uniphase Corp.+............ 11,600 37,468
KT Corp. ADR................... 2,000 40,480
Nokia Corp. ADR................ 5,700 94,449
QUALCOMM, Inc.................. 4,300 137,127
Vodafone Group, PLC ADR........ 6,000 118,560
---------------
1,112,689
---------------
TOTAL INVESTMENT SECURITIES
(cost $11,386,611)............. 10,188,501
---------------
REPURCHASE AGREEMENT -- 2.4%
Agreement with State Street
Bank & Trust Co., bearing
interest at 1.21%, dated
04/30/03, to be repurchased
05/01/03 in the amount of
$245,008 and collateralized
by $250,000 of Federal Home
Loan Bank Note, bearing
interest at 5.12%, due 09/15/
03 and having an approximate
value of $255,249
(cost $245,000).............. $ 245 245,000
---------------
TOTAL INVESTMENTS --
(cost $11,631,611*)............ 100.3% 10,433,501
Liabilities in excess of other
assets......................... (0.3) (35,274)
--------------- ---------------
NET ASSETS --.................... 100.0% $10,398,227
=============== ===============
</Table>
- ------------
<Table>
* See Note 7
+ Non-income producing securities
ADR American Depository Receipt
</Table>
See Notes to Financial Statements
26
<Page>
SUNAMERICA AGGRESSIVE GROWTH LIFESTAGE FUND
PORTFOLIIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED)
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
AFFILIATED INVESTMENT COMPANIES -- 99.8%
INTERNATIONAL EQUITY SECURITIES -- 29.5%
SunAmerica International Equity
Fund
Class I+ (cost $6,486,497)..... 791,096 $ 5,996,504
---------------
DOMESTIC EQUITY SECURITIES -- 64.1%
SunAmerica Blue Chip Growth Fund
Class I+....................... 354,078 4,316,214
SunAmerica Style Select Series
Focused Multi-Cap Value
Portfolio
Class I........................ 340,241 4,916,479
SunAmerica Growth & Income Fund
Class I+....................... 231,957 2,205,908
SunAmerica New Century Fund
Class I+....................... 136,621 1,614,863
---------------
TOTAL DOMESTIC EQUITY SECURITIES
(cost $14,352,581)............... 13,053,464
---------------
FIXED INCOME SECURITIES -- 6.2%
SunAmerica Core Bond Fund
Class I (cost $1,223,177)...... 120,464 1,252,827
---------------
TOTAL INVESTMENTS --
(cost $22,062,255*).............. 99.8% 20,302,795
Other assets less liabilities...... 0.2 45,620
------- ---------------
NET ASSETS --...................... 100.0% $ 20,348,415
======= ===============
</Table>
- ------------
<Table>
* See Note 7
+ Non-income producing securities
</Table>
See Notes to Financial Statements
27
<Page>
SUNAMERICA MODERATE GROWTH LIFESTAGE FUND
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED)
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
AFFILIATED INVESTMENT COMPANIES -- 99.6%
INTERNATIONAL EQUITY SECURITIES -- 15.5%
SunAmerica International Equity
Fund
Class I+ (cost $5,036,741)..... 632,236 $ 4,792,345
---------------
DOMESTIC EQUITY SECURITIES -- 59.7%
SunAmerica Blue Chip Growth Fund
Class I+....................... 452,916 5,521,045
SunAmerica Style Select Series
Focused Multi-Cap Value
Portfolio
Class I........................ 441,349 6,377,486
SunAmerica Growth & Income Fund
Class I+....................... 492,366 4,682,402
SunAmerica New Century Fund
Class I+....................... 159,496 1,885,239
---------------
TOTAL DOMESTIC EQUITY SECURITIES
(cost $19,544,138)............... 18,466,172
---------------
FIXED INCOME SECURITIES -- 24.4%
SunAmerica Core Bond Fund
Class I (cost $7,349,948)...... 724,922 7,539,193
---------------
TOTAL INVESTMENTS --
(cost $31,930,827*).............. 99.6% 30,797,710
Other assets less liabilities...... 0.4 118,872
------- ---------------
NET ASSETS --...................... 100.0% $ 30,916,582
======= ===============
</Table>
- ------------
<Table>
* See Note 7
+ Non-income producing securities
</Table>
See Notes to Financial Statements
28
<Page>
SUNAMERICA CONSERVATIVE GROWTH LIFESTAGE FUND
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2003 -- (UNAUDITED)
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
AFFILIATED INVESTMENT COMPANIES -- 99.9%
INTERNATIONAL EQUITY SECURITIES -- 8.6%
SunAmerica International Equity
Fund
Class I+ (cost $1,689,398).... 217,535 $ 1,648,912
---------------
DOMESTIC EQUITY SECURITIES -- 47.4%
SunAmerica Blue Chip Growth Fund
Class I+...................... 241,487 2,943,725
SunAmerica Style Select Series
Focused Multi-Cap Value
Portfolio
Class I....................... 213,554 3,085,858
SunAmerica Growth & Income Fund
Class I+...................... 275,287 2,617,981
SunAmerica New Century Fund
Class I+...................... 34,299 405,417
---------------
TOTAL DOMESTIC EQUITY SECURITIES
(cost $9,090,319)............... 9,052,981
---------------
FIXED INCOME SECURITIES -- 43.9%
SunAmerica Core Bond Fund
Class I (cost $8,143,849)..... 806,773 8,390,438
---------------
TOTAL INVESTMENTS --
(cost $18,923,566*)............. 99.9% 19,092,331
Other assets less liabilities..... 0.1 17,875
-------- ---------------
NET ASSETS --..................... 100.0% $ 19,110,206
======== ===============
</Table>
- ------------
<Table>
* See Note 7
+ Non-income producing securities
</Table>
See Notes to Financial Statements
29
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED)
NOTE 1. ORGANIZATION
SunAmerica Strategic Investment Series, Inc. (the "Corporation") is an
open-end investment company organized as a Maryland corporation on
December 16, 1998. It currently consists of seven different investment funds
(each, a "Fund" and collectively, the "Funds"). Each Fund is a separate
series with a distinct investment objective and/or strategy. Each Fund is
advised and/or managed by AIG SunAmerica Asset Management Corp. (the
"Adviser" or "SAAMCo"), an indirect wholly-owned subsidiary of American
International Group, Inc. ("AIG"). An investor may invest in one or more of
the following Funds: SunAmerica Biotech/Health Fund ("Biotech/Health Fund")
prior to April 16, 2002, this Fund's name was SunAmerica Biotech/Health 30
Fund, Tax Managed Equity Fund ("Tax Managed Equity Fund"), SunAmerica Stock
Index Fund ("Stock Index Fund"), SunAmerica Science & Technology Fund
("Science & Technology Fund"), SunAmerica Aggressive Growth LifeStage Fund
("Aggressive Growth LifeStage Fund"), SunAmerica Moderate Growth LifeStage
Fund ("Moderate Growth LifeStage Fund") and SunAmerica Conservative Growth
LifeStage Fund ("Conservative Growth LifeStage Fund"). The investment
objective for each of the Funds is as follows:
BIOTECH/HEALTH FUND seeks long-term growth of capital through active
trading of equity securities of companies principally engaged in
biotechnology or healthcare, without regard to market capitalization. Under
normal market conditions this Fund invests at least 80% of the Fund's net
assets plus any borrowing for investment purposes, in such securities.
TAX MANAGED EQUITY FUND seeks high total return by investing in
securities of large and medium-sized companies while attempting to minimize
capital gain distributions to shareholders. Under normal market conditions
this Fund invests at least 80% of the Fund's net assets plus any borrowing
for investment purposes, in such securities.
STOCK INDEX FUND seeks returns that are similar to the total return of
the S&P 500 Index by investing in equity securities of companies included in
the S&P 500 Index. Under normal market conditions this Fund invests at least
80% of the Fund's net assets plus any borrowing for investment purposes, in
such securities.
SCIENCE & TECHNOLOGY FUND seeks long-term growth of capital through
active trading of equity securities of companies expected to benefit from the
development, advancement and application of science and technology, without
regard to market capitalization. Under normal market conditions this Fund
invests at least 80% of the Fund's net assets plus any borrowing for
investment purposes, in such securities.
AGGRESSIVE GROWTH LIFESTAGE FUND seeks growth of capital by allocating
assets among a combination of SunAmerica Mutual Funds investing in equity and
fixed income securities, with an emphasis on funds investing in equity
securities. Under normal market conditions this Fund invests 45%-85% in
domestic equity mutual funds, 10%-35% in foreign equity mutual funds and
10%-20% in bond funds.
MODERATE GROWTH LIFESTAGE FUND seeks growth of capital and current income
by allocating assets among a combination of SunAmerica Mutual Funds investing
in equity and fixed income securities, with an
30
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
emphasis on funds investing in equity securities. Under normal market
conditions the Fund invests 30%-75% in domestic equity mutual funds, 7%-25%
in foreign equity mutual funds and 15%-45% in bond funds.
CONSERVATIVE GROWTH LIFESTAGE FUND seeks current income and growth of
capital, with reduced volatility by allocating assets among a combination of
SunAmerica Mutual Funds investing in equity and fixed income securities, with
an emphasis on funds investing in fixed income securities. Under normal
market conditions the Fund invests 20%-65% in domestic equity mutual funds,
5%-15% in foreign equity mutual funds and 25%-75% in bond funds.
The LifeStage Funds invest in various SunAmerica mutual funds, some of
which are not presented in this report. Additional information on the
underlying Funds is available at our website, www.sunamericafunds.com.
CLASSES OF SHARES: Each Fund currently offers multiple classes of shares.
The classes within each Fund are presented in the Statement of Assets and
Liabilities. The cost structure for each class is as follows:
Class A shares -- Offered at net asset value per share plus
an initial sales charge. Any purchases of
Class A shares in excess of $1,000,000 will
be subject to a contingent deferred sales
charge on redemptions made within two years
of purchase.
Class B shares -- Offered at net asset value per share
without an initial sales charge, although a
declining contingent deferred sales charge
may be imposed on redemptions made within
six years of purchase. Class B shares will
convert automatically to Class A shares on
the first business day of the month after
eight years from the issuance of such
shares and at such time will be subject to
the lower distribution fee applicable to
Class A shares.
Class II shares -- Offered at net asset value per share plus
an initial sales charge. Certain
redemptions made within the first 18 months
of the date of purchase are subject to a
contingent deferred sales charge.
Class I shares -- Offered at net asset value per share. This
class is offered exclusively to
participants in certain employee retirement
plans and other programs.
Each class of shares bears the same voting, dividend, liquidation and
other rights and conditions and each makes distribution and account
maintenance and service fee payments under the distribution plans pursuant to
Rule 12b-1 under the Investment Company Act of 1940 (the "1940 Act"), except
that Class B shares and Class II shares are subject to higher distribution
fee rates. There are no distribution or service fee payments applicable to
Class I. The LifeStage Funds only make distribution fee payments.
INDEMNIFICATIONS: Under the Funds' organizational documents, its officers
and trustees are indemnified against certain liability arising out of the
performance of their duties to the Funds. In addition, in the normal course
of business the Funds enter into contracts that contain a variety of
representations and warranties which provide general indemnifications. The
Funds' maximum exposure under these arrangements are unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds expect the risk of loss to be remote.
31
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
NOTE 2. FUND MERGERS
Pursuant to a plan of reorganization approved by shareholders of the
North American Funds ("NA Funds") on November 7, 2001, all the assets and
liabilities of the determined NA Funds were transferred in a tax-free
exchange to a determined SunAmerica Mutual Funds ("SA Funds"). The details of
the reorganization transactions, which were consummated on November 16, 2001,
are set forth below.
The SunAmerica Stock Index Fund, SunAmerica Science & Technology Fund,
SunAmerica Aggressive Growth LifeStage Fund, SunAmerica Moderate Growth
LifeStage Fund, and SunAmerica Conservative Growth LifeStage Fund,
respectively, newly created portfolios of the Corporation acquired all of the
assets and liabilities of the North American Stock Index Fund, North American
Science & Technology Fund, North American Aggressive Growth LifeStyle Fund,
North American Moderate Growth LifeStyle Fund, and North American
Conservative Growth LifeStyle Fund, respectively. In conjunction with the
reoganization, for each of the listed Funds above, Class C shares of each of
the NA Funds were redesignated as Class II shares of the SA Funds.
NOTE 3. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America 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.
The following is a summary of the significant accounting policies
followed by the Funds in the preparation of their financial statements:
SECURITY VALUATIONS: Securities that are actively traded in the
over-the-counter market, including listed securities for which the primary
market is believed by the Adviser to be over-the-counter, are valued at the
quoted bid price provided by principal market makers. Securities listed on
the New York Stock Exchange ("NYSE") or other national securities exchanges
are valued on the basis of the last sale price on the exchange on which they
are primarily traded. If there is no sale on that day, then securities are
valued at the closing bid price on the NYSE or other primary exchange for
that day. However, if the last sale price on the NYSE is different than the
last sale price on any other exchange, the NYSE price is used. Securities
listed on the NASDAQ exchange will be valued using the NASDAQ Official
Closing Price ("NOCP"). Generally, the NOCP will be the last sale price
unless the reported trade for the security is outside the range of the bid/
ask price. In such cases, the NOCP will be normalized to the nearer of the
bid or ask price. Securities that are traded on foreign exchanges are
ordinarily valued at the last quoted sales price available before the time
when the assets are valued. If a security's price is available from more than
one foreign exchange, a Fund uses the exchange that is the primary market for
the security. The investments of the LifeStage Funds and other mutual funds
held are valued at the closing net asset value per share of each underlying
Fund. Options traded on national securities exchanges are valued as of the
close of the exchange on which they are traded. Futures and options traded on
commodities exchanges are valued at their last sale price as of the close of
such exchange. The Funds may make use of a pricing service in the
determination of their net asset values. Securities for which market
quotations are not readily available or if a development/event
32
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
occurs that may significantly impact the value of a security, then these
securities may be fair valued as determined pursuant to procedures adopted in
good faith by the Board of Directors (the "Directors"). Short-term
investments which mature in less than 60 days are valued at amortized cost,
if their original maturity was 60 days or less, or by amortizing their value
on the 61st day prior to maturity, if their original term to maturity
exceeded 60 days.
REPURCHASE AGREEMENTS: Pursuant to exemptive relief granted by the
Securities and Exchange Commission, the Funds are permitted to participate in
joint repurchase agreement transactions with other affiliated mutual funds.
The Funds, along with other affiliated registered investment companies, may
transfer uninvested cash balances into a single joint account, the daily
aggregate balance of which is invested in one or more repurchase agreements
collateralized by U.S. Treasury or federal agency obligations. The Funds'
custodian takes possession of the collateral pledged for investments in such
repurchase agreements. The underlying collateral is valued daily on a mark to
market basis to ensure that the value, including accrued interest, is at
least equal to the repurchase price. In the event of default of the
obligation to repurchase, a Fund 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 Fund may be delayed or limited.
As of April 30, 2003, Biotech/Health Fund had a 2.2% undivided interest
which represented $5,558,000 in principal amount in a joint repurchase
agreement with State Street Bank & Trust Co. As of such date, the repurchase
agreement in the joint account and the collateral thereof are as follows:
State Street Bank & Trust Co. Repurchase Agreement, 1.13% dated 4/30/03
in the principal amount of $252,071,000, repurchase price $252,078,912 due
5/01/03, collateralized by the following:
<Table>
<Caption>
INTEREST MATURITY PRINCIPAL MARKET
TYPE OF COLLATERAL RATE DATE AMOUNT VALUE
------------------ -------- ----------- ------------- -------------
U.S. Treasury Bill....................... 1.12% 10/2/2003 $ 40,000,000 $ 40,804,950
U.S. Treasury Note....................... 2.88% 6/30/2004 20,000,000 20,401,013
U.S. Treasury Note....................... 2.25% 7/31/2004 80,000,000 81,604,875
U.S. Treasury Bond....................... 6.25% 5/15/2030 100,000,000 102,004,906
U.S. Treasury Bond....................... 7.25% 5/15/2016 12,071,000 12,317,125
</Table>
SECURITIES TRANSACTIONS, INVESTMENT INCOME, EXPENSES, DIVIDENDS AND
DISTRIBUTIONS TO SHAREHOLDERS: As customary in the mutual fund industry
securities transactions are recorded on a trade date basis. Realized gains
and losses on sales of investments are calculated on the identified cost
basis. Interest income is recorded on the accrual basis; dividend income is
recorded on the ex-dividend date. The LifeStage Funds invest in a combination
of SunAmerica Mutual Funds including Funds investing in fixed income
securities. Funds that invest in fixed income securities amortize premiums
and accrete discounts, 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.
Funds investing in foreign securities may be subject to taxes imposed by
countries in which they invest. Such taxes are generally based on either
income or gains earned or repatriated.
33
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
Net investment income, other than class-specific expenses, and realized
and unrealized gains and losses, are allocated daily to each class of shares
based upon the relative net asset value of outstanding shares (or the value
of the dividend-eligible shares, as appropriate) of each class of shares at
the beginning of the day (after adjusting for the current capital share
activity of the respective class).
Expenses common to all Funds, not directly related to individual Funds,
are allocated among the Funds based upon their relative net asset values or
other appropriate methods. In all other respects, expenses are charged to
each Fund as incurred on a specific identification basis. Interest earned on
cash balances held at the custodian are shown as custody credits on the
Statement of Operations. Effective December 2, 2002, the Board of Directors
approved a change in the accounting of expenses for the LifeStage Funds based
on current industry practice. Accordingly, the expenses included in the
accompanying financial statements reflect the expenses of the LifeStage Funds
and does not include indirect expenses borne by each LifeStage Fund in
connection with its investment in the underlying Funds.
The Funds issue and redeem shares, invest in securities and distribute
dividends from net investment income and net realized gains which are paid in
cash or are reinvested at the discretion of shareholders. These activities
are reported in the Statement of Changes in Net Assets. Dividends from net
investment income, if any, are paid at least annually. Capital gain
distributions, if any, are paid at least annually. The Funds record dividends
and distributions to their respective 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 accounting principles
generally accepted in the United States of America. 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 at fiscal year end based on their
federal tax-basis treatment; temporary differences do not require
reclassification. Net investment income/loss, net realized gain/loss, and net
assets are not affected. The Funds intend to comply with the requirements of
the Internal Revenue Code, as amended, applicable to regulated investment
companies and distribute all of their taxable income, including any net
realized gain on investments, to their shareholders. Therefore, no federal
tax provision is required. Each Fund is considered a separate entity for tax
purposes.
FOREIGN CURRENCY TRANSLATION: The books and records of the Funds 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 based on the exchange rate of such currencies
against U.S. dollars on the date of valuation.
The Funds do 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
Funds do 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 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 a Fund's
34
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
books and the U.S. dollar equivalent amounts actually received or paid and
changes in the unrealized foreign exchange gains and losses relating to other
assets and liabilities arising as a result of changes in the exchange rate.
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 Funds are 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 Funds' activities in futures contracts are for hedging purposes and are
conducted through regulated exchanges which do not result in counterparty
credit risks. A Fund'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. Pursuant to a contract the Funds 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 Funds as unrealized appreciation or depreciation. Futures
contracts involve elements of risk in excess of the amount reflected in the
Statement of Assets and Liabilities. When a contract is closed, the Funds
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.
SHORT SALES: The Funds may sell a security it does not own in anticipation
of a decline in the market value of that security (short sales). To complete
such a transaction, the Fund must borrow the security to make delivery to the
buyer. The Fund then is obligated to replace the security borrowed by
purchasing it at market price at the time of replacement. The price at such
time may be more or less than the price at which the security was sold by the
Fund. Until the security is replaced, the Fund is required to pay to the
lender any dividends or interest that accrue during the period of the loan.
To borrow the security, the Fund also may be required to pay a premium, which
would increase the cost of the security sold. The proceeds of the short sale
will be retained by the broker, to the extent necessary to meet margin
requirements, until the short position is closed out. Until the Fund replaces
a borrowed security, the Fund will maintain daily a segregated account,
containing cash or liquid securities, at such a level that (i) the amount
deposited in the account plus the amount deposited with the broker as
collateral will equal the current value of the security sold short and
(ii) the amount deposited in the segregated account plus the amount deposited
with the broker as collateral will not be less than the market value of the
security at the time it was sold short. Liabilities for securities sold short
are reported at market value in the financial statements. Such liabilities
are subject to off balance sheet risk to the extent of any future increases
in market value of the securities sold short. The ultimate liability for
securities sold short could exceed the liabilities recorded in the Statement
of Assets and Liabilities. The Fund bears the risk of potential inability of
the broker to meet their obligation to perform.
NOTE 4. INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT, DISTRIBUTION AGREEMENT AND
SERVICE AGREEMENT
The Corporation, on behalf of each Fund, has entered into an Investment
Advisory and Management Agreement (the "Agreement") with SAAMCo. Under the
Agreement, SAAMCo provides continuous supervision of each respective Fund and
administers its corporate affairs, subject to general review by the
Directors. In connections therewith, SAAMCo furnishes the Funds with office
facilities, maintains certain of
35
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
the Fund's books and records, and pays the salaries and expenses of all
personnel, including officers of the Funds who are employees of SAAMCo and
its affiliates. The investment advisory and management fee payable by the
Funds to SAAMCo is computed daily and payable monthly, at an annual rate
based on the average daily net assets as follows:
<Table>
<Caption>
EXCESS
FIRST OVER
FUND $500 MILLION $500 MILLION
- ---- ------------ ------------
Biotech/Health Fund.................................. 0.75% same
Tax Managed Equity Fund.............................. 0.85% same
Stock Index Fund..................................... 0.27% 0.26%
Science & Technology Fund............................ 0.90% same
Aggressive Growth LifeStage Fund..................... 0.10% same
Moderate Growth LifeStage Fund....................... 0.10% same
Conservative Growth LifeStage Fund................... 0.10% same
</Table>
Prior to November 16, 2001, American General Asset Management ("AGAM")
was the advisor for the Stock Index Fund, Science & Technology Fund,
Aggressive Growth LifeStage Fund, Moderate Growth LifeStage Fund and
Conservative Growth LifeStage Fund. The annual investment advisory and
management fee percentages payable to AGAM prior to November 16, 2001, are
the same as those payable under the current investment advisory agreement
with SAAMCo.
The Tax Managed Equity Fund, Stock Index Fund and Science & Technology
Fund are subadvised by J.P. Morgan Fleming Asset Management, Inc., AIG Global
Investment Corp. ("AIGGIC") and T. Rowe Price & Associates, Inc.,
respectively. AIGGIC is an indirect wholly-owned subsidiary of AIG and an
affiliate of SAAMCo. Under the Subadvisory Agreements, the subadvisors manage
the investment and reinvestment of the assets of the respective Fund for
which they are responsible. Each of the subadvisors is independent of SAAMCo
except for AIGGIC and discharges its responsibilities subject to the polices
of the Corporation's Directors and the oversight and supervision of SAAMCo.
All Subadvisory fees are paid by SAAMCo and do not increase Fund
expenses. The Subadvisory fees paid by SAAMCo are computed at an annual rate
based upon the average daily net assets as follows:
<Table>
<Caption>
SUBADVISORY
ASSETS FEES
--------------- -----------
Tax Managed Equity Fund......................... $0-$200 million 0.45%
>$200 million 0.40
>$400 million 0.35
Stock Index Fund................................ $0-$2 billion 0.20
>$2 billion 0.10
Science & Technology Fund....................... >$0 0.60
</Table>
Prior to November 16, 2001, the Stock Index Fund, Aggressive Growth
LifeStage Fund, Moderate Growth LifeStage Fund, and Conservative Growth
LifeStage Fund (all operating as the North American
36
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
Funds) were sub-advised by American General Investment Management, L.P.
("AGIM"). AGIM was an indirect wholly-owned subsidiary of AIG and received
the same fee rate as the current subadvisor, which was paid by AGAM.
SAAMCo has contractually agreed to waive fees or reimburse expenses, if
necessary to keep the annual expenses at or below an annual rate of 1.55% of
the assets of Class A shares and 2.20% of the assets of Class B and Class II
shares for the Biotech/Health Fund; 1.45% of the assets of Class A shares and
2.10% of the assets of Class B and Class II shares for the Tax Managed Equity
Fund; 0.75% of the assets of Class A shares, and 1.40% of the assets of
Class B and Class II shares for the SunAmerica Stock Index Fund; and 1.50% of
the assets of Class A shares, 2.15% of the assets of Class B and Class II
shares and 1.40% of the assets of Class I shares of the SunAmerica Science &
Technology Fund. Effective December 1, 2002 SAAMCo contractually agreed to
waive fees or reimburse expenses, if necessary to keep the annual expenses at
or below an annual rate of 0.50% of the assets of Class A shares and 1.15% of
the assets of Class B shares and Class II shares and 0.40% of Class I shares
of the LifeStage Funds. SAAMCo also may voluntarily waive or reimburse
additional amounts to increase the investment return to the Funds' investors.
Further, any waivers or reimbursements made by SAAMCo are subject to
recoupment from the Funds within the following two years, provided that the
Funds are able to effect such payment to SAAMCo and remain in compliance with
the foregoing expense limitations.
For the six months ended April 30, 2003, expenses were reimbursed to the
Funds as follows:
<Table>
Biotech/Health Fund -- Class A.............................. $22,260
Biotech/Health Fund -- Class B.............................. 24,195
Biotech/Health Fund -- Class II............................. 21,540
Tax Managed Equity Fund -- Class A.......................... 20,273
Tax Managed Equity Fund -- Class B.......................... 27,372
Tax Managed Equity Fund -- Class II......................... 26,890
Stock Index Fund -- Class A................................. 26,473
Stock Index Fund -- Class B................................. 58,535
Stock Index Fund -- Class II................................ 10,830
Science & Technology Fund -- Class A........................ 20,478
Science & Technology Fund -- Class B........................ 58,259
Science & Technology Fund -- Class II....................... 8,646
Science & Technology Fund -- Class I........................ 3,888
Aggressive Growth Lifestage Fund A.......................... 8,218
Aggressive Growth Lifestage Fund B.......................... 19,506
Aggressive Growth Lifestage Fund II......................... 2,707
Aggressive Growth Lifestage Fund I.......................... 10,874
Moderate Growth Lifestage Fund A............................ 4,279
Moderate Growth Lifestage Fund B............................ 10,572
Moderate Growth Lifestage Fund II........................... 2,608
Moderate Growth Lifestage Fund I............................ 5,390
Conservative Growth Lifestage Fund A........................ 6,167
Conservative Growth Lifestage Fund B........................ 9,701
Conservative Growth Lifestage Fund II....................... 3,404
Conservative Growth Lifestage Fund I........................ 6,654
</Table>
37
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
For the six months ended April 30, 2003, none of the previously
reimbursed expenses have been repaid to the Advisor by the Funds.
At April 30, 2003, expenses previously waived or reimbursed by SAAMCo
that are subject to recoupment are as follows:
<Table>
<Caption>
OTHER EXPENSES
REIMBURSED
--------------
Biotech/Health Fund............................... $--
Tax Managed Equity Fund........................... --
Stock Index Fund.................................. 110,524
Science & Technology Fund......................... 115,772
Aggressive Growth LifeStage Fund.................. 29,475
Moderate Growth LifeStage Fund.................... 12,491
Conservative Growth LifeStage Fund................ 16,515
<Caption>
CLASS SPECIFIC
EXPENSES
REIMBURSED
--------------
Biotech/Health Fund Class A....................... $117,029
Biotech/Health Fund Class B....................... 110,772
Biotech/Health Fund Class II...................... 98,785
Tax Managed Equity Fund Class A................... 109,190
Tax Managed Equity Fund Class B................... 152,135
Tax Managed Equity Fund Class II.................. 158,152
Stock Index Fund Class A.......................... 50,163
Stock Index Fund Class B.......................... 119,926
Stock Index Fund Class II......................... 25,343
Science & Technology Fund Class A................. 30,279
Science & Technology Fund Class B................. 80,289
Science & Technology Fund Class II................ 16,236
Science & Technology Fund Class I................. 11,964
Aggressive Growth LifeStage Fund Class A.......... 3,751
Aggressive Growth LifeStage Fund Class B.......... 4,531
Aggressive Growth LifeStage Fund Class II......... 2,244
Aggressive Growth LifeStage Fund Class I.......... 1,304
Moderate Growth LifeStage Fund Class A............ 2,516
Moderate Growth LifeStage Fund Class B............ 5,603
Moderate Growth LifeStage Fund Class II........... 2,112
Moderate Growth LifeStage Fund Class I............ 127
Conservative Growth LifeStage Fund Class A........ 2,429
Conservative Growth LifeStage Fund Class B........ 3,732
Conservative Growth LifeStage Fund Class II....... 2,079
Conservative Growth LifeStage Fund Class I........ 1,171
</Table>
38
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
The Corporation, on behalf of each Fund, has entered into a Distribution
Agreement with AIG SunAmerica Capital Services, Inc. ("SACS" or the
"Distributor"), an affiliate of SAAMCo. Each Fund has adopted a Distribution
Plan (the "Plan") in accordance with the provisions of Rule 12b-1 under the
1940 Act. Rule 12b-1 permits an investment company directly or indirectly to
pay expenses associated with the distribution of its shares ("distribution
expenses") in accordance with a plan adopted by the investment company's
Board of Directors and approved by its shareholders. Pursuant to such rule,
the Directors and shareholders of each class of shares of each Fund have
adopted Distribution Plans hereinafter referred to as the "Class A Plan," the
"Class B Plan" and the "Class II Plan." In adopting the Class A Plan, the
Class B Plan and the Class II Plan, the Directors determined that there was a
reasonable likelihood that each such Plan would benefit the Fund and the
shareholders of the respective class. The sales charge and distribution fees
of a particular class will not be used to subsidize the sale of shares of any
other class.
Under the Class A Plan, Class B Plan and Class II Plan, the Distributor
receives payments from a Fund at an annual rate of up to 0.10%, 0.75% and
0.75%, respectively, of average daily net assets of such Fund's Class to
compensate the Distributor and certain securities firms for providing sales
and promotional activities for distributing that class of shares. The
distribution costs for which the Distributor may be reimbursed out of such
distribution fees include fees paid to broker-dealers that have sold Fund
shares, commissions, and other expenses such as those incurred for sales
literature, prospectus printing and distribution and compensation to
wholesalers. It is possible that in any given year the amount paid to the
Distributor under each Class' Plan may exceed the Distributor's distribution
costs as described above. Except for the three LifeStage Funds, the
Distribution Plans also provide that each class of shares of each Fund may
also pay the Distributor an account maintenance and service fee up to an
annual rate of 0.25% of the aggregate average daily net assets of such class
of shares for payments to broker-dealers for providing continuing account
maintenance. Accordingly, for the six months ended April 30, 2003, SACS
received fees (see Statement of Operations) based upon the aforementioned
rate.
Prior to November 16, 2001, the Stock Index Fund, Science & Technology
Fund, Aggressive Growth LifeStage Fund, Moderate Growth LifeStage Fund and
Conservative Growth LifeStage Fund were subject to a different Distribution
Agreement with American General Fund Distributor, Inc. ("AGFD"). Under this
agreement, AGFD received fees from the Stock Index Fund and Science &
Technology Fund at an annual rate of 0.35% for the Class A shares and 1.00%
for Class B and II shares based on average daily net assets of each class.
For the LifeStage Funds, AGFD received fees at an annual rate of 0.10% for
the Class A shares and 0.75% for Class B and II shares based on average daily
assets of each class.
In addition, except for the LifeStage Funds SACS is paid a fee of 0.25%
of average daily net assets of Class I shares as compensation for providing
additional shareholder services to Class I shareholders.
SACS receives sales charges on the Fund's Class A and Class II shares,
portions of which are reallowed to affiliated broker-dealers and
non-affiliated broker-dealers. SACS also receives the proceeds of contingent
deferred sales charges paid by investors in connection with certain
redemptions of the Fund's
39
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
Class A, Class B and Class II shares. SACS has advised the Funds that for
the six months ended April 30, 2003 the proceeds received from sales (and
paid out to affiliated and non-affiliated broker-dealers) and redemptions are
as follows:
<Table>
<Caption>
CLASS A CLASS B
----------------------------------------- -------------
CONTINGENT
SALES AFFILIATED NON-AFFILIATED DEFERRED
CHARGES BROKER-DEALERS BROKER-DEALERS SALES CHARGES
------- -------------- -------------- -------------
Biotech/Health Fund........................... $20,453 $ 9,825 $ 7,908 $30,161
Tax Managed Equity Fund....................... 13,694 6,357 4,283 69,832
Stock Index Fund.............................. 36,845 20,026 12,107 33,777
Science & Technology Fund..................... 10,100 4,742 3,747 10,148
Aggressive Growth LifeStage Fund.............. 5,757 5,045 178 11,320
Moderate Growth LifeStage Fund................ 11,923 10,639 1,695 9,131
Conservative Growth LifeStage Fund............ 10,819 7,314 1,962 14,118
</Table>
<Table>
<Caption>
CLASS II
---------------------------------------------------------
CONTINGENT
SALES AFFILIATED NON-AFFILIATED DEFERRED
CHARGES BROKER-DEALERS BROKER-DEALERS SALES CHARGES
------- -------------- -------------- -------------
Biotech/Health Fund............................ $3,643 $1,935 $1,709 $2,650
Tax Managed Equity Fund........................ 3,847 946 2,901 2,043
Stock Index Fund............................... 1,230 735 495 948
Science & Technology Fund...................... 474 356 118 42
Aggressive Growth LifeStage Fund............... 997 782 216 89
Moderate Growth LifeStage Fund................. 2,878 975 1,903 379
Conservative Growth LifeStage Fund............. 2,744 505 2,239 349
</Table>
The LifeStage Funds do not invest in underlying SunAmerica Funds for the
purpose of exercising management or control; however, investments by the
LifeStage Funds within the set limits may represent a significant portion of
an underlying SunAmerica Fund's net assets. At April 30, 2003, each LifeStage
Fund held less than 10% of the outstanding shares of any underlying
SunAmerica Fund. In addition, the LifeStage Funds, in the aggregate, held
less than 15% of the outstanding shares of any underlying SunAmerica Funds.
The Corporation, except for the LifeStage Funds, has entered into a
Service Agreement with AIG SunAmerica Fund Services, Inc. ("SAFS"), an
affiliate of SAAMCo. Under the Service Agreement, SAFS performs certain
shareholder account functions by assisting the Funds' transfer agent in
connection with the services that it offers to the shareholders of the Funds.
The Service Agreement, which permits the Funds to compensate SAFS for
services rendered based upon an annual rate of 0.22% of average daily net
40
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
assets, is approved annually by the Directors. For the six months ended
April 30, 2003, the Funds incurred the following expenses which are included
in transfer agent fees in the Statement of Operations to compensate SAFS
pursuant to the terms of the Service Agreement.
<Table>
<Caption>
PAYABLE AT
EXPENSES APRIL 30, 2003
------------------------------------------ -------------------------------------------
CLASS A CLASS B CLASS II CLASS I CLASS A CLASS B CLASS II CLASS I
-------- -------- --------- -------- -------- -------- --------- ---------
Biotech/Health Fund................ $16,212 $16,065 $11,795 $ -- $2,540 $2,525 $1,743 $ --
Tax Managed Equity Fund............ 16,611 25,571 25,265 -- 2,572 3,972 3,938 --
Stock Index Fund................... 8,796 20,577 2,922 -- 1,538 3,459 438 --
Science & Technology Fund.......... 2,421 7,375 673 166 406 1,246 110 28
</Table>
As of April 30, 2003, The Variable Annuity Life Insurance Company
("VALIC"), an indirect wholly owned subsidiary of AIG, held five percent or
more of the outstanding shares of the indicated Funds' classes:
<Table>
<Caption>
PERCENT
OWNED
- ----------------------------------------------------------------------
Stock Index Fund
Class A..................................................... 19%
Science & Technology Fund
Class A..................................................... 6
Class I..................................................... 100
Aggressive Growth LifeStage Fund
Class A..................................................... 35
Class B..................................................... 9
Class I..................................................... 32
Moderate Growth LifeStage Fund
Class A..................................................... 27
Class B..................................................... 8
Class I..................................................... 18
Conservative Growth LifeStage Fund
Class A..................................................... 30
Class B..................................................... 17
Class I..................................................... 41
</Table>
In addition, SAAMCo owns 2% of the Class II outstanding shares of the Tax
Managed Equity Fund and 5% of the Class A outstanding shares of the
Biotech/Health Fund.
41
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
NOTE 5. PURCHASES AND SALES OF INVESTMENT SECURITIES
The aggregate cost of purchases and proceeds from sales and maturities of
long-term investments during the period ended April 30, 2003 were as follows:
<Table>
<Caption>
AGGRESSIVE MODERATE CONSERVATIVE
SCIENCE & GROWTH GROWTH GROWTH
BIOTECH/ TAX MANAGED STOCK INDEX TECHNOLOGY LIFESTAGE LIFESTAGE LIFESTAGE
HEALTH FUND FUND FUND FUND FUND FUND FUND
----------- ----------- ----------- ---------- ----------- ---------- ------------
Purchases (excluding U.S.
government securities)........ $34,510,657 $ 2,318,686 $1,278,687 $2,482,228 $ 4,080,392 $8,596,052 $5,427,007
Sales (excluding U.S. government
securities)................... 33,834,711 12,766,852 163,986 2,113,643 3,556,301 6,548,992 5,456,982
Purchases of U.S. government
securities.................... -- -- -- -- -- -- --
Sales of U.S. government
securities.................... -- -- -- -- -- -- --
</Table>
NOTE 6. TRANSACTIONS WITH AFFILIATE
As disclosed in the investment portfolios of the Tax Managed Equity Fund
and Stock Index Fund, the Funds own a security issued by AIG or an affiliate
thereof. For the period ended April 30, 2003, the Funds recorded income on
security transactions of AIG and subsidiaries of AIG as follows:
<Table>
<Caption>
SECURITY INCOME
-------- ------
Tax Managed Equity Fund............ AIG $1,089
Stock Index Fund................... AIG 839
</Table>
The following funds incurred brokerage commissions with affiliated
brokers which are affiliates of a sub-adviser:
<Table>
<Caption>
AGGRESSIVE MODERATE CONSERVATIVE
BIOTECH/ TAX STOCK SCIENCE & GROWTH GROWTH GROWTH
HEALTH MANAGED INDEX TECHNOLOGY LIFESTAGE LIFESTAGE LIFESTAGE
FUND FUND FUND FUND FUND FUND FUND
-------- --------- --------- ---------- ---------- --------- ------------
J.P. Morgan Securities, Inc........ $7,850 -- -- $143 -- -- --
</Table>
42
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
NOTE 7. FEDERAL INCOME TAXES
The following details the tax basis distributions as well as the
components of distributable earnings. As of October 31, 2002, the tax basis
components of distributable earnings differ from the amounts reflected in the
Statement of Assets and Liabilities by temporary book/tax differences
primarily arising from wash sales, post October losses, and Fund mergers.
<Table>
<Caption>
DISTRIBUTABLE EARNINGS TAX DISTRIBUTIONS
----------------------------------------------- ----------------------
FOR THE YEAR ENDED OCTOBER 31, 2002
-------------------------------------------------------------------------
LONG-TERM GAINS/ UNREALIZED LONG-TERM
ORDINARY CAPITAL LOSS APPRECIATION ORDINARY CAPITAL
INCOME CARRYOVER (DEPRECIATION) INCOME GAINS
--------- ---------------- -------------- --------- ---------
Biotech/Health Fund.......................... $ -- $(35,214,797) $ (5,255,659) $ -- $ --
Tax Managed Equity Fund...................... -- (26,663,794) (18,681,776) -- --
Stock Index Fund............................. 87,654 (2,502,376) (11,125,971) 54,993 --
Science & Technology Fund.................... -- (17,643,730) (5,623,668) -- --
Aggressive Growth LifeStage Fund............. 111,028 (7,199,749) (6,076,726) 109,998 --
Moderate Growth LifeStage Fund............... 349,625 (4,394,037) (6,261,638) 262,993 --
Conservative Growth LifeStage Fund........... 358,022 (2,697,143) (2,632,571) 340,001 --
</Table>
As of October 31, 2002, the following funds have capital loss
carryforwards which will be available to the extent provided in regulations
and which will expire between 2007-2010. To the extent that these carryover
losses are used to offset future capital gains, it is probable that the gains
so offset will not be distributed to shareholders.
<Table>
<Caption>
CAPITAL LOSS
CARRYFORWARDS
AMOUNT
-------------
Biotech/Health Fund......................................... $35,214,797
Tax Managed Equity Fund..................................... 26,663,794
Stock Index Fund............................................ 2,502,376
Science & Technology Fund................................... 17,643,730
Aggressive Growth LifeStage Fund............................ 7,009,175
Moderate Growth LifeStage Fund.............................. 4,024,724
Conservative Growth LifeStage Fund.......................... 2,586,907
</Table>
43
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
The amounts of aggregate unrealized gain (loss) and the cost of
investment securities for federal tax purposes, including short-term
securities and repurchase agreements as of April 30, 2003, were as follows:
<Table>
<Caption>
AGGRESSIVE MODERATE CONSERVATIVE
SCIENCE & GROWTH GROWTH GROWTH
BIOTECH/ TAX MANAGED STOCK INDEX TECHNOLOGY LIFESTAGE LIFESTAGE LIFESTAGE
HEALTH FUND FUND FUND FUND FUND FUND FUND
----------- ------------ ------------ ----------- ----------- ----------- ------------
Cost (tax basis)............. $40,731,037 $ 72,788,168 $ 41,046,620 $13,690,647 $24,863,648 $34,936,389 $20,504,279
=========== ============ ============ =========== =========== =========== ===========
Appreciation................. $ 3,466,292 $ 3,338,202 $ 1,554,442 $ 477,469 $ 29,650 $ 189,245 $ 308,958
Depreciation................. (3,463,260) (16,569,501) (11,563,138) (3,734,615) (4,590,503) (4,327,924) (1,720,906)
----------- ------------ ------------ ----------- ----------- ----------- -----------
Net unrealized appreciation
(depreciaiton)............. $ 3,032 $(13,231,299) $(10,008,697) $(3,257,146) $(4,560,853) $(4,138,679) $(1,411,948)
=========== ============ ============ =========== =========== =========== ===========
</Table>
NOTE 8. CAPITAL SHARE TRANSACTIONS
Transactions in capital shares of each class of each fund were as
follows:
<Table>
<Caption>
BIOTECH/HEALTH FUND
----------------------------------------------------------------------------------------------------
CLASS A CLASS B
--------------------------------------------------- -----------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002
------------------------- ------------------------ ----------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------- ---------- ------------ --------- ------------ --------- -----------
Shares sold.............. 185,863* $ 1,392,046* 646,970 $ 6,336,427 100,783 $ 740,772 572,460 $ 5,712,976
Reinvested dividends..... -- -- -- -- -- -- -- --
Shares redeemed.......... (387,818) (2,891,965) (1,062,148) (9,526,931) (276,245)* (2,030,829)* (810,536) (7,339,560)
-------- ----------- ---------- ----------- -------- ----------- -------- -----------
Net increase
(decrease)............. (201,955) $(1,499,919) (415,178) $(3,190,504) (175,462) $(1,290,057) (238,076) $(1,626,584)
======== =========== ========== =========== ======== =========== ======== ===========
</Table>
<Table>
<Caption>
BIOTECH/HEALTH FUND
--------------------------------------------------
CLASS II
--------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002
------------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------- --------- ------------
Shares sold.............. 73,123 $ 540,173 339,378 $ 3,284,100
Reinvested dividends..... -- -- -- --
Shares redeemed.......... (430,167) (3,148,714) (838,133) (7,689,471)
-------- ----------- -------- -----------
Net increase
(decrease)............. (357,044) $(2,608,541) (498,755) $(4,405,371)
======== =========== ======== ===========
- ------------------
* Includes automatic conversion of 12,941 shares of Class B shares in the amount of $92,343 to 12,636 shares of Class A
shares in the amount of $92,343.
</Table>
44
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
<Table>
<Caption>
TAX MANAGED EQUITY FUND
------------------------------------------------------------------------------------------------------
CLASS A CLASS B
--------------------------------------------------- -------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002
------------------------- ------------------------ ----------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------- ---------- ------------ --------- ------------ ---------- ------------
Shares sold............. 37,309* $ 338,474* 255,825 $ 2,796,384 41,358 $ 368,203 341,922 $ 3,766,020
Reinvested dividends.... -- -- -- -- -- -- -- --
Shares redeemed......... (309,244) (2,754,565) (1,016,375) (10,481,262) (479,381)* (4,181,808)* (1,167,526) (11,638,648)
-------- ----------- ---------- ------------ -------- ----------- ---------- ------------
Net increase
(decrease)............ (271,935) $(2,416,091) (760,550) $ (7,684,878) (438,023) $(3,813,605) (825,604) $ (7,872,628)
======== =========== ========== ============ ======== =========== ========== ============
</Table>
<Table>
<Caption>
TAX MANAGED EQUITY FUND
---------------------------------------------------
CLASS II
---------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002
------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------- ---------- ------------
Shares sold............. 69,250 $ 601,220 319,412 $ 3,458,869
Reinvested dividends.... -- -- -- --
Shares redeemed......... (610,595) (5,358,531) (1,331,221) (13,791,589)
-------- ----------- ---------- ------------
Net increase
(decrease)............ (541,345) $(4,757,311) (1,011,809) $(10,332,720)
======== =========== ========== ============
</Table>
<Table>
<Caption>
STOCK INDEX FUND
----------------------------------------------------------------------------------------------------
CLASS A CLASS B
------------------------------------------------- -------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002
------------------------ ----------------------- ----------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ --------- ------------ -------- ----------- --------- -----------
Shares sold.............. 280,062** $2,198,222** 260,515 $ 2,428,245 299,103 $ 2,333,511 632,857 $ 5,906,314
Reinvested dividends..... 7,985 63,642 5,044 49,982 4,165 33,152 431 4,268
Shares redeemed.......... (120,724) (937,422) (155,624) (1,356,697) (284,363)** (2,217,393)** (568,750) (5,278,347)
-------- ---------- -------- ----------- -------- ----------- -------- -----------
Net increase
(decrease)............. 167,323 $1,324,442 109,935 $ 1,121,530 18,905 $ 149,270 64,538 $ 632,235
======== ========== ======== =========== ======== =========== ======== ===========
</Table>
<Table>
<Caption>
STOCK INDEX FUND
------------------------------------------------
CLASS II+
------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002
------------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ -------- -----------
Shares sold.............. 43,851 $ 344,297 292,752 $2,643,460
Reinvested dividends..... 624 4,942 29 281
Shares redeemed.......... (102,987) (794,597) (71,600) (632,305)
-------- --------- ------- ----------
Net increase
(decrease)............. (58,512) $(445,358) 221,181 $2,011,436
======== ========= ======= ==========
- ------------------
+ See Note 2
* Includes automatic conversion of 1,530 shares of Class B shares in the amount of $13,081 to 1,516 shares of Class A
shares in the amount of $13,081.
** Includes automatic conversion of 1,482 shares of Class B shares in the amount of $11,323 to 1,474 shares of Class A
shares in the amount of $11,323.
</Table>
45
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
<Table>
<Caption>
SCIENCE & TECHNOLOGY FUND
--------------------------------------------------------------------------------------------------
CLASS A CLASS B
------------------------------------------------ ------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002
------------------------- --------------------- ----------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------ --------- ---------- ---------- ----------- --------- -----------
Shares sold.............. 206,874* $ 481,914* 244,541 $ 726,756 344,802 $ 781,753 559,269 $ 1,607,887
Reinvested dividends..... -- -- -- -- -- -- -- --
Shares redeemed.......... (176,286) (392,852) (134,448) (384,113) (317,283)* (707,867)* (541,541) (1,479,868)
-------- --------- -------- --------- -------- --------- -------- -----------
Net increase
(decrease)............. 30,588 $ 89,062 110,093 $ 342,643 27,519 $ 73,886 17,728 $ 128,019
======== ========= ======== ========= ======== ========= ======== ===========
</Table>
<Table>
<Caption>
SCIENCE & TECHNOLOGY FUND
--------------------------------------------------------------------------------------------
CLASS II+ CLASS I
---------------------------------------------- --------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002
------------------------ -------------------- ---------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ -------- ---------- ---------- ---------- --------- ---------
Shares sold.............. 68,945 $ 151,443 63,024 $ 193,961 -- $-- 33,747 $ 116,738
Reinvested dividends..... -- -- -- -- -- -- -- --
Shares redeemed.......... (67,766) (149,152) (94,353) (248,758) -- -- (224,586) (790,279)
------- --------- ------- --------- ------- ------- -------- ---------
Net increase
(decrease)............. 1,179 $ 2,291 (31,329) $ (54,797) -- $-- (190,839) $(673,541)
======= ========= ======= ========= ======= ======= ======== =========
</Table>
<Table>
<Caption>
AGGRESSIVE GROWTH LIFESTAGE FUND
-------------------------------------------------------------------------------------------------
CLASS A CLASS B
---------------------------------------------- -------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002
------------------------ -------------------- ----------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ -------- ---------- --------- ---------- --------- -----------
Shares sold......... 31,505** $ 202,002** 93,914 $ 714,141 103,890 $ 668,316 193,588 $ 1,476,309
Reinvested
dividends......... 6,081 38,374 4,135 34,526 9,328 59,139 2,073 17,106
Shares redeemed..... (19,473) (124,355) (90,472) (703,615) (120,889)** (773,987)** (272,106) (2,014,498)
------- --------- ------- --------- -------- --------- -------- -----------
Net increase
(decrease)........ 18,113 $ 116,021 7,577 $ 45,052 (7,671) $ (46,532) (76,445) $ (521,083)
======= ========= ======= ========= ======== ========= ======== ===========
</Table>
<Table>
<Caption>
AGGRESSIVE GROWTH LIFESTAGE FUND
--------------------------------------------------------------------------------------------
CLASS II+ CLASS I
---------------------------------------------- --------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002
------------------------ -------------------- ---------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ -------- ---------- --------- ----------- -------- ----------
Shares sold.............. 17,322 $111,672 45,563 $ 380,095 141,468 $ 901,610 280,983 $2,138,818
Reinvested dividends..... 257 1,644 41 344 13,775 87,062 7,447 61,214
Shares redeemed.......... (6,795) (43,579) (31,487) (275,989) (45,820) (289,113) (79,390) (587,171)
------ -------- ------- --------- ------- --------- ------- ----------
Net increase
(decrease)............. 10,784 $ 69,737 14,117 $ 104,450 109,423 $ 699,559 209,040 $1,612,861
====== ======== ======= ========= ======= ========= ======= ==========
- ------------------
+ See Note 2
* Includes automatic conversion of 12,272 shares of Class B shares in the amount of $28,535 to 12,266 shares of
Class A shares in the amount of $28,535.
** Includes automatic conversion of 1,015 shares of Class B shares in the amount of $6,425 to 1,017 shares of Class A
shares in the amount of $6,425.
</Table>
46
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
<Table>
<Caption>
MODERATE GROWTH LIFESTAGE FUND
-----------------------------------------------------------------------------------------------
CLASS A CLASS B
---------------------------------------------- -----------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002
------------------------ -------------------- ----------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ -------- ---------- --------- ------------ --------- -----------
Shares sold.............. 108,203 $ 829,062 121,248 $ 997,231 120,513 $ 911,142 261,161 $ 2,203,318
Reinvested dividends..... 7,877 58,996 5,608 50,695 13,846 104,263 8,440 76,638
Shares redeemed.......... (39,995) (299,700) (79,893) (691,063) (147,038) (1,112,702) (206,329) (1,753,040)
------- --------- ------- --------- -------- ----------- -------- -----------
Net increase
(decrease)............. 76,085 $ 588,358 46,963 $ 356,863 (12,679) $ (97,297) 63,272 $ 526,916
======= ========= ======= ========= ======== =========== ======== ===========
</Table>
<Table>
<Caption>
MODERATE GROWTH LIFESTAGE FUND
-----------------------------------------------------------------------------------------------
CLASS II+ CLASS I
---------------------------------------------- -----------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002
------------------------ -------------------- ----------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ -------- ---------- --------- ------------ --------- -----------
Shares sold.............. 59,504 $ 456,060 67,822 $ 582,164 299,388 $2,261,994 672,505 $ 5,764,807
Reinvested dividends..... 1,166 8,791 481 4,379 25,881 193,593 14,350 129,438
Shares redeemed.......... (25,154) (190,401) (24,662) (206,397) (78,494) (592,298) (238,088) (2,026,639)
------- --------- ------- --------- ------- ---------- -------- -----------
Net increase
(decrease)............. 35,516 $ 274,450 43,641 $ 380,146 246,775 $1,863,289 448,767 $ 3,867,606
======= ========= ======= ========= ======= ========== ======== ===========
</Table>
<Table>
<Caption>
CONSERVATIVE GROWTH LIFESTAGE FUND
--------------------------------------------------------------------------------------------------
CLASS A CLASS B
----------------------------------------------- -------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002
------------------------ --------------------- ----------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ -------- ----------- --------- ------------ --------- -----------
Shares sold.............. 84,655* $ 715,041* 151,857 $1,331,153 60,386 $ 507,051 152,122 $ 1,346,548
Reinvested dividends..... 12,002 98,893 8,165 76,020 13,895 115,202 13,082 127,052
Shares redeemed.......... (24,833) (204,965) (89,989) (808,598) (174,422)* (1,466,519)* (342,458) (3,097,024)
------- --------- ------- ---------- -------- ----------- -------- -----------
Net increase
(decrease)............. 71,824 $ 608,969 70,033 $ 598,575 (100,141) $ (844,266) (177,254) $(1,623,424)
======= ========= ======= ========== ======== =========== ======== ===========
</Table>
<Table>
<Caption>
CONSERVATIVE GROWTH LIFESTAGE FUND
--------------------------------------------------------------------------------------------
CLASS II+ CLASS I
---------------------------------------------- --------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS FOR THE YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002 ENDED APRIL 30, 2003 OCTOBER 31, 2002
------------------------ -------------------- ---------------------- --------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ -------- ---------- --------- ----------- -------- ----------
Shares sold.............. 44,709 $374,702 94,644 $ 839,800 65,363 $ 545,598 175,836 $1,599,196
Reinvested dividends..... 2,663 22,160 950 8,928 18,285 150,668 13,749 128,001
Shares redeemed.......... (9,293) (77,883) (19,358) (170,559) (28,141) (234,283) (61,696) (557,703)
------ -------- ------- --------- ------- --------- ------- ----------
Net increase
(decrease)............. 38,079 $318,979 76,236 $ 678,169 55,507 $ 461,983 127,889 $1,169,494
====== ======== ======= ========= ======= ========= ======= ==========
- ------------------
+ See Note 2
* Includes automatic conversion of 248 shares of Class B shares in the amount of $2,023 to 247 shares of Class A shares
in the amount of $2,023.
</Table>
47
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2003 -- (UNAUDITED) (CONTINUED)
NOTE 9. DIRECTORS' RETIREMENT PLAN
The Directors (and Trustees) of the SunAmerica Strategic Investment
Series, Inc. have adopted the SunAmerica Disinterested Trustees' and
Directors' Retirement Plan (the "Retirement Plan") effective January 1, 1993
for the unaffiliated Directors. The Retirement Plan provides generally that
if an unaffiliated Director who has at least 10 years of consecutive service
as a Disinterested Director of any of the SunAmerica mutual funds (an
"Eligible Director") retires after reaching age 60 but before age 70 or dies
while a Director, such person will be eligible to receive a retirement or
death benefit from each SunAmerica mutual fund with respect to which he or
she is an Eligible Director. As of each birthday, prior to the 70th birthday,
but in no event for a period greater than 10 years, each Eligible Director
will be credited with an amount equal to 50% of his or her regular fees
(excluding committee fees) for services as a Disinterested Director of each
SunAmerica mutual fund for the calendar year in which such birthday occurs.
In addition, an amount equal to 8.5% of any amounts credited under the
preceding clause during prior years, is added to each Eligible Director's
account until such Eligible Director reaches his or her 70th birthday. An
Eligible Director may receive any benefits payable under the Retirement Plan,
at his or her election, either in one lump sum or in up to fifteen annual
installments. Any undistributed amounts shall continue to accrue interest at
8.5%.
<Table>
<Caption>
RETIREMENT PLAN RETIREMENT PLAN
LIABILITY EXPENSE
--------------- ---------------
AS OF APRIL 30, 2003
---------------------------------
Biotech/Health Fund.............................. $3,177 $548
Tax Managed Equity Fund.......................... 8,077 807
Stock Index Fund................................. 804 310
Science & Technology Fund........................ 341 115
Aggressive Growth Lifestage Fund................. 129 129
Moderate Growth Lifestage Fund................... 190 190
Conservative Growth Lifestage Fund............... 122 122
</Table>
NOTE 10. COMMITMENTS AND CONTINGENCIES
The SunAmerica Family of Mutual Funds has established a $75 million
committed and $50 million uncommitted lines of credit with State Street Bank
and Trust Company, the Funds' custodian. Interest is currently payable at the
Federal Funds Rate plus 50 basis points on the committed line and State
Street's discretionary bid rate on the uncommitted line of credit. There is
also a commitment fee of 10 basis points per annum on the daily unused
portion of the committed line of credit. Borrowings under the line of credit
will commence when the respective Fund's cash shortfall exceeds $100,000.
During the six months ended April 30, 2003, none of the Funds participated in
the lines of credit agreement.
48
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
DIRECTOR INFORMATION -- (UNAUDITED)
The following table contains basic information regarding the Directors that
oversee operations of the Funds and other investment companies within the Fund
complex.
<Table>
<Caption>
NUMBER OF
TERM OF FUNDS IN
POSITION OFFICE AND FUND OTHER
NAME, HELD WITH LENGTH OF COMPLEX DIRECTORSHIPS
ADDRESS AND SUNAMERICA TIME PRINCIPAL OCCUPATIONS OVERSEEN BY HELD BY
DATE OF BIRTH* COMPLEX SERVED DURING PAST 5 YEARS DIRECTOR(1) DIRECTOR(2)
- -------------- ---------- ----------- ------------------------------ ----------- ------------------------------
S. James Coppersmith Director 18 years Retired. 45 Director of BJ's Wholesale
DOB: February 21, 1933 Club, Inc.; Member of Board of
Governors of the Boston Stock
Exchange.
Judith L. Craven Director 1 1/2 years Retired Administrator. 75 Director, A.G. Belo
DOB: October 6, 1945 Corporation (1992 to present);
Director, Sysco Corporation
(1996 to present); Director,
Luby's Inc. (1998 to present).
William F. Devin Director 1 1/2 years Retired. 75 Member of the Board of
DOB: December 30, 1938 Governors, Boston Stock
Exchange (1985-Present).
Samual M.. Eisenstat Chairman 17 years Attorney, solo practitioner. 46 Director, North European Oil
DOB: March 7, 1940 of the Royalty Trust.
Board
Stephen J. Gutman Director 18 years Partner and Managing Member of 46 None
DOB: May 10, 1943 B.B. Associates LLC (menswear
specialty retailing and other
activities) (June 1988 to
present).
Peter A. Harbeck(3) Director 8 years President, CEO and Director, 83 None
DOB: January 23, 1954 SAAMCo (August 1995 to
present). Director, SACS
(August 1993 to present).
</Table>
49
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
DIRECTOR INFORMATION -- (UNAUDITED) (CONTINUED)
<Table>
<Caption>
NUMBER OF
TERM OF FUNDS IN
POSITION OFFICE AND FUND OTHER
NAME, HELD WITH LENGTH OF COMPLEX DIRECTORSHIPS
ADDRESS AND SUNAMERICA TIME PRINCIPAL OCCUPATIONS OVERSEEN BY HELD BY
DATE OF BIRTH* COMPLEX SERVED DURING PAST 5 YEARS DIRECTOR(1) DIRECTOR(2)
- -------------- ---------- ----------- ------------------------------ ----------- ------------------------------
Sebastiano Sterpa Director 10 years Founder and Chairman of the 37 Director, Real Estate Business
DOB: July 18, 1929 Board of the Sterpa Group Service and Countrywide
(real estate investment and Financial.
management) (1962 to present).
</Table>
- ------------
* The business address for each Director is the Haborside Financial Center,
3200 Plaza 5, Jersey City, NJ 07311-4992.
(1) The "Fund Complex" consists of all registered investment company portfolios
for which SAAMCo serves as investment adviser or business manager. The "Fund
Complex" includes the SunAmerica Money Market Funds (2 funds), SunAmerica
Equity Funds (7 funds), SunAmerica Income Funds (6 funds), SunAmerica Style
Select Series, Inc. (15 portfolios), SunAmerica Strategic Investment
Series, Inc. (7 funds), Anchor Series Trust (8 portfolios), SunAmerica
Senior Floating Rate Fund, Inc. (1 fund), SunAmerica Series Trust (33
portfolios), VALIC Company I (22 portfolios), VALIC Company II (15 funds)
Anchor Pathway Funds (7 series) and Seasons Series Trust (19 portfolios).
(2) Directorships of companies required to report to the Securities and Exchange
Commission under the Securities Exchange Act of 1934 (i.e. "public
companies") or other investment companies registered under the Investment
Company Act of 1940.
(3) Interested Director, as defined in the Investment Company Act of 1940.
Additional information concerning the Directors is contained in the Statement of
Additional Information and is available without charge by calling
(800) 858-8850.
50
<Page>
[AIG SUNAMERICA MUTUAL FUNDS LOGO]
AIG SUNAMERICA ASSET MANAGEMENT CORP.
HARBORSIDE FINANCIAL CENTER
3200 PLAZA 5
JERSEY CITY, NJ 07311-4992
DIRECTORS/TRUSTEES
S. JAMES COPPERSMITH
JUDITH L. CRAVEN
WILLIAM F. DEVIN
SAMUEL M. EISENSTAT
STEPHEN J. GUTMAN
PETER A. HARBECK
SEBASTIANO STERPA
OFFICERS
ROBERT M. ZAKEM, PRESIDENT
DONNA M. HANDEL, TREASURER
BRIAN P. CLIFFORD, VICE PRESIDENT
J. STEVEN NEAMTZ, VICE PRESIDENT
STEVEN SCHOEPKE, VICE PRESIDENT
ABBE P. STEIN, VICE PRESIDENT
AND ASSISTANT SECRETARY
JOSEPH P. KELLY, ASSISTANT SECRETARY
STACEY V. MORRISON, ASSISTANT SECRETARY
LAURA E. FILIPPONE, ASSISTANT TREASURER
GREGORY R. KINGSTON, VICE PRESIDENT
AND ASSISTANT TREASURER
DONALD H. GUIRE, ASSISTANT TREASURER
INVESTMENT ADVISER
AIG SUNAMERICA ASSET MANAGEMENT CORP.
HARBORSIDE FINANCIAL CENTER
3200 PLAZA 5
JERSEY CITY, NJ 07311-4992
DISTRIBUTOR
AIG SUNAMERICA CAPITAL SERVICES, INC.
HARBORSIDE FINANCIAL CENTER
3200 PLAZA 5
JERSEY CITY, NJ 07311-4992
SHAREHOLDER SERVICING AGENT
AIG SUNAMERICA FUND SERVICES, INC.
HARBORSIDE FINANCIAL CENTER
3200 PLAZA 5
JERSEY CITY, NJ 07311-4992
CUSTODIAN AND TRANSFER AGENT
STATE STREET BANK AND TRUST COMPANY
P.O. BOX 219373
KANSAS CITY, MO 64121
This report is submitted solely for the general information of shareholders
of the Fund. Distribution of this report to persons other than shareholders
of the Fund is authorized only in connection with a currently effective
prospectus, setting forth details of the Fund, which must precede or
accompany this report.
The accompanying report has not been audited by independent accountants and
accordingly no opinion has been expressed thereon.
Distributed by:
AIG SunAmerica Capital Services, Inc.
SISAN-4/03
<Page>
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Reserved.
Item 6. Reserved.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Reserved.
Item 9. Controls and Procedures.
(a) An evaluation was performed within 90 days of the filing of this report,
under the supervision and with the participation of the registrant's
management, including the President and Treasurer, of the effectiveness
of the design and operation of the registrant's disclosure controls and
procedures. Based on that evaluation, the registrant's management,
including the President and Treasurer, concluded that the registrant's
disclosure controls and procedures are effective.
(b) During the period covered in this report there were no significant
deficiencies or material weaknesses in the registrant's internal
controls or in other factors that could significantly affect these
controls subsequent to date of their evaluation. However, the registrant
did enhance its process of monitoring the recording of the daily
variation margin for Futures Contracts.
Item 10. Exhibits.
(a) Not applicable.
(b) (1) Certification pursuant to Rule 30a-2 under the Investment Company
Act of 1940 (17 CFR 270.30a-2) attached hereto as Exhibit 99.CERT.
(2) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of
2002 attached hereto as Exhibit 99.906.CERT.
<Page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
SunAmerica Strategic Investment Series, Inc.
By: /s/Robert M. Zakem
------------------
Robert M. Zakem
President
Date: July 3, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/Robert M. Zakem
------------------
Robert M. Zakem
President
Date: July 3, 2003
By: /s/Donna M. Handel
------------------
Donna M. Handel
Treasurer
Date: July 3, 2003