<Page>
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, 2003
--------------------------
Date of reporting period: October 31, 2003
-------------------------
<Page>
Item 1. Reports to Shareholders
<Page>
[GRAPHIC]
SUNAMERICA
THE RETIREMENT SPECIALIST
STRATEGIC INVESTMENT SERIES
2003 ANNUAL REPORT
[AIG SUNAMERICA MUTUAL FUNDS LOGO]
<Page>
OCTOBER 31, 2003 ANNUAL 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
STATEMENT OF CHANGES IN NET ASSETS 4
FINANCIAL HIGHLIGHTS 7
PORTFOLIO OF INVESTMENTS 14
NOTES TO FINANCIAL STATEMENTS 31
REPORT OF INDEPENDENT AUDITORS 52
DIRECTOR INFORMATION 53
SHAREHOLDER TAX INFORMATION 55
</Table>
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
STATEMENT OF ASSETS AND LIABILITIES -- OCTOBER 31, 2003
<Table>
<Caption>
TAX
BIOTECH/ MANAGED STOCK SCIENCE &
HEALTH EQUITY INDEX TECHNOLOGY
FUND FUND FUND FUND
-----------------------------------------------------------------
ASSETS:
Investment securities, at value* $ 35,352,778 $ 59,980,518 $ 38,711,278 $ 13,767,783
Short-term securities (cost equals market) -- 756,000 129,929 226,534
Repurchase agreements (cost equals market) 13,337,000 -- 2,066,000 --
Foreign cash@ -- -- -- 33
Deposit with brokers for securities sold short 6,398,134 -- -- --
Cash 394 356 302 --
Receivable for investments sold 1,032,952 -- -- 11,395
Receivable for fund shares sold 102,860 49,169 36,941 10,660
Interest and dividends receivable 358 104,162 52,090 8,822
Receivable for variation margin on futures contracts -- -- 2,100 --
Receivable from investment adviser 7,845 12,650 37,694 35,823
Prepaid expenses 447 688 314 911
-------------- -------------- -------------- --------------
Total assets 56,232,768 60,903,543 41,036,648 14,061,961
-------------- -------------- -------------- --------------
LIABILITIES:
Payable for investments purchased -- -- 10,076 31,203
Payable for fund shares redeemed 149,893 87,276 15,746 32,212
Accrued expenses 120,455 122,932 64,971 60,651
Investment advisory and management fees payable 31,908 43,396 9,204 10,333
Distribution and service maintenance fees payable 32,006 42,916 26,552 9,540
Securities sold short, at value# 6,470,650 -- -- --
-------------- -------------- -------------- --------------
Total liabilities 6,804,912 296,520 126,549 143,939
-------------- -------------- -------------- --------------
Net assets $ 49,427,856 $ 60,607,023 $ 40,910,099 $ 13,918,022
============== ============== ============== ==============
NET ASSETS WERE COMPOSED OF:
Common Stock $.0001 par value $ 511 $ 591 $ 439 $ 454
Paid-in capital 78,393,205 97,064,042 48,423,439 32,964,909
-------------- -------------- -------------- --------------
78,393,716 97,064,633 48,423,878 32,965,363
Accumulated undistributed net investment income (loss) (3,177) (8,076) 161,898 (341)
Accumulated undistributed net realized gain (loss) on
investments, futures contracts, securities sold short and
foreign exchange transactions (36,097,343) (30,923,844) (2,407,209) (21,092,768)
Net unrealized appreciation (depreciation) on:
Investments 7,215,242 (5,525,690) (5,324,943) 2,045,766
Futures contracts -- -- 56,475 --
Foreign exchange transactions and other assets and liabilites -- -- -- 2
Securities sold short (80,582) -- -- --
-------------- -------------- -------------- --------------
Net assets $ 49,427,856 $ 60,607,023 $ 40,910,099 $ 13,918,022
============== ============== ============== ==============
*Identified cost of investment securities $ 28,137,536 $ 65,506,208 $ 44,036,221 $ 11,722,017
============== ============== ============== ==============
@Identified cost of foreign cash $ -- $ -- $ -- $ 31
============== ============== ============== ==============
#Proceeds from securities sold short $ 6,390,068 $ -- $ -- $ --
============== ============== ============== ==============
<Caption>
AGGRESSIVE MODERATE CONSERVATIVE
GROWTH GROWTH GROWTH
LIFESTAGE LIFESTAGE LIFESTAGE
FUND FUND FUND
----------------------------------------------
ASSETS:
Investment securities, at value* $ 24,512,283 $ 37,522,262 $ 21,752,627
Short-term securities (cost equals market) -- -- --
Repurchase agreements (cost equals market) -- -- --
Foreign cash@ -- -- --
Deposit with brokers for securities sold short -- -- --
Cash 12,267 81,472 16,072
Receivable for investments sold -- -- --
Receivable for fund shares sold 15,826 39,472 101,628
Interest and dividends receivable -- -- --
Receivable for variation margin on futures contracts -- -- --
Receivable from investment adviser 31,761 24,840 26,753
Prepaid expenses 185 279 182
-------------- -------------- --------------
Total assets 24,572,322 37,668,325 21,897,262
-------------- -------------- --------------
LIABILITIES:
Payable for investments purchased -- -- --
Payable for fund shares redeemed 12,597 40,294 4,825
Accrued expenses 46,491 40,195 34,697
Investment advisory and management fees payable 2,058 3,141 1,827
Distribution and service maintenance fees payable 8,136 10,392 6,398
Securities sold short, at value# -- -- --
-------------- -------------- --------------
Total liabilities 69,282 94,022 47,747
-------------- -------------- --------------
Net assets $ 24,503,040 $ 37,574,303 $ 21,849,515
============== ============== ==============
NET ASSETS WERE COMPOSED OF:
Common Stock $.0001 par value $ 315 $ 425 $ 234
Paid-in capital 33,162,625 42,621,432 24,670,194
-------------- -------------- --------------
33,162,940 42,621,857 24,670,428
Accumulated undistributed net investment income (loss) (129) 12,298 108,039
Accumulated undistributed net realized gain (loss) on
investments, futures contracts, securities sold short and
foreign exchange transactions (10,829,107) (8,506,445) (4,910,855)
Net unrealized appreciation (depreciation) on:
Investments 2,169,336 3,446,593 1,981,903
Futures contracts -- -- --
Foreign exchange transactions and other assets and liabilites -- -- --
Securities sold short -- -- --
-------------- -------------- --------------
Net assets $ 24,503,040 $ 37,574,303 $ 21,849,515
============== ============== ==============
*Identified cost of investment securities $ 22,342,947 $ 34,075,669 $ 19,770,724
============== ============== ==============
@Identified cost of foreign cash $ -- $ -- $ --
============== ============== ==============
#Proceeds from securities sold short $ -- $ -- $ --
============== ============== ==============
</Table>
See Notes to Financial Statements
1
<Page>
<Table>
<Caption>
TAX
BIOTECH/ MANAGED STOCK SCIENCE &
HEALTH EQUITY INDEX TECHNOLOGY
FUND FUND FUND FUND
--------------------------------------------------------------
CLASS A (25 MILLION SHARES AUTHORIZED):
Net assets $ 18,923,505 $ 14,877,044 $ 13,890,079 $ 3,392,761
Common Stock issued and outstanding 1,928,241 1,418,134 1,482,750 1,086,265
Net asset value and redemption price per share
(excluding any applicable contingent deferred sales charge) $ 9.81 $ 10.49 $ 9.37 $ 3.12
Maximum sales charge (5.75% of offering price) 0.60 0.64 0.57 0.19
-------------- -------------- -------------- --------------
Maximum offering price to public $ 10.41 $ 11.13 $ 9.94 $ 3.31
============== ============== ============== ==============
CLASS B (25 MILLION SHARES AUTHORIZED):
Net assets $ 17,842,584 $ 22,694,315 $ 23,601,415 $ 9,366,727
Common Stock issued and outstanding 1,859,626 2,230,837 2,537,180 3,069,134
Net asset value, offering and redemption price
per share (excluding any applicable contingent
deferred sales charge) $ 9.59 $ 10.17 $ 9.30 $ 3.05
============== ============== ============== ==============
CLASS II (25 MILLION SHARES AUTHORIZED):
Net assets $ 12,661,767 $ 23,035,664 $ 3,418,605 $ 949,039
Common Stock issued and outstanding 1,317,416 2,261,317 369,327 319,652
Net asset value and redemption price per share
(excluding any applicable contingent deferred sales charge) $ 9.61 $ 10.19 $ 9.26 $ 2.97
Maximum sales charge (1.00% of offering price) 0.10 0.10 0.09 0.03
-------------- -------------- -------------- --------------
Maximum offering price to public $ 9.71 $ 10.29 $ 9.35 $ 3.00
============== ============== ============== ==============
CLASS I (25 MILLION SHARES AUTHORIZED):
Net assets $ -- $ -- $ -- $ 209,495
Common Stock issued and outstanding -- -- -- 66,700
Net asset value, offering and redemption price per share $ -- $ -- $ -- $ 3.14
============== ============== ============== ==============
<Caption>
AGGRESSIVE MODERATE CONSERVATIVE
GROWTH GROWTH GROWTH
LIFESTAGE LIFESTAGE LIFESTAGE
FUND FUND FUND
----------------------------------------------
CLASS A (25 MILLION SHARES AUTHORIZED):
Net assets $ 3,672,508 $ 5,819,520 $ 6,789,352
Common Stock issued and outstanding 472,660 658,051 727,298
Net asset value and redemption price per share
(excluding any applicable contingent deferred sales charge) $ 7.77 $ 8.84 $ 9.34
Maximum sales charge (5.75% of offering price) 0.47 0.54 0.57
-------------- -------------- --------------
Maximum offering price to public $ 8.24 $ 9.38 $ 9.91
============== ============== ==============
CLASS B (25 MILLION SHARES AUTHORIZED):
Net assets $ 11,818,419 $ 14,169,624 $ 7,567,461
Common Stock issued and outstanding 1,522,068 1,603,256 809,984
Net asset value, offering and redemption price
per share (excluding any applicable contingent
deferred sales charge) $ 7.76 $ 8.84 $ 9.34
============== ============== ==============
CLASS II (25 MILLION SHARES AUTHORIZED):
Net assets $ 533,176 $ 1,601,141 $ 1,661,669
Common Stock issued and outstanding 68,028 180,940 177,353
Net asset value and redemption price per share (excluding
any applicable contingent deferred sales charge) $ 7.84 $ 8.85 $ 9.37
Maximum sales charge (1.00% of offering price) 0.08 0.09 0.09
-------------- -------------- --------------
Maximum offering price to public $ 7.92 $ 8.94 $ 9.46
============== ============== ==============
CLASS I (25 MILLION SHARES AUTHORIZED):
Net assets $ 8,478,937 $ 15,984,018 $ 5,831,033
Common Stock issued and outstanding 1,088,909 1,807,670 623,944
Net asset value, offering and redemption price per share $ 7.79 $ 8.84 $ 9.35
============== ============== ==============
</Table>
See Notes to Financial Statements
2
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
STATEMENT OF OPERATIONS -- FOR THE YEAR ENDED OCTOBER 31, 2003
<Table>
<Caption>
TAX
BIOTECH/ MANAGED STOCK SCIENCE &
HEALTH EQUITY INDEX TECHNOLOGY
FUND FUND FUND FUND
--------------------------------------------------------------
INCOME:
Income:
Interest $ 77,241 $ 1,733 $ 19,569 $ 1,250
Dividends* 26,050 1,098,402 561,450 39,772
-------------- -------------- -------------- --------------
Total income 103,291 1,100,135 581,019 41,022
-------------- -------------- -------------- --------------
Expenses:
Investment advisory and management fees 331,090 519,867 88,926 99,284
Distribution and service maintenance fees-Class A 57,668 52,568 33,994 8,990
Distribution and service maintenance fees-Class B 162,390 230,393 203,881 75,817
Distribution and service maintenance fees-Class II 114,299 231,020 28,349 7,111
Service fees-Class I -- -- -- 426
Transfer agent fees and expenses-Class A 50,186 40,285 27,761 14,389
Transfer agent fees and expenses-Class B 56,418 60,631 70,706 48,015
Transfer agent fees and expenses-Class II 42,251 59,631 9,325 6,653
Transfer agent fees and expenses-Class I -- -- -- 459
Registration fees-Class A 19,532 10,663 10,541 10,170
Registration fees-Class B 17,718 10,873 14,542 13,081
Registration fees-Class II 17,718 11,303 8,311 9,011
Registration fees-Class I -- -- -- 8,901
Printing expense 5,470 861 27,745 36,017
Custodian fees and expenses 52,446 54,232 48,813 54,817
Audit and tax fees 27,525 27,294 28,043 28,458
Legal fees and expenses 6,202 8,843 5,895 4,448
Directors' fees and expenses 3,897 6,152 2,299 183
Dividend expense on securities sold short 9,650 -- -- --
Miscellaneous expenses 7,914 9,187 12,589 3,687
-------------- -------------- -------------- --------------
Total expenses 982,374 1,333,803 621,720 429,917
Less: expenses waived/reimbursed by investment adviser (117,176) (146,883) (222,555) (210,685)
Less: Fee paid indirectly (Note 9) -- -- -- (2,354)
Less: custody credits earned on cash balances (1,098) (166) (1,199) (19)
-------------- -------------- -------------- --------------
Net expenses 864,100 1,186,754 397,966 216,859
-------------- -------------- -------------- --------------
Net investment income (loss) (760,809) (86,619) 183,053 (175,837)
-------------- -------------- -------------- --------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments ( 637,572) (4,260,050) (155,844) (1,390,002)
Net realized gain (loss) on futures contracts -- -- 333,198 --
Net realized gain (loss) on securities sold short (244,929) -- -- --
Net realized gain (loss) on foreign exchange and
other assets and liabilities -- -- -- (1,322)
Net change in unrealized appreciation (depreciation)
on investments 12,128,174 13,156,086 5,801,028 5,610,398
Net change in unrealized appreciation (depreciation)
on futures contracts -- -- (27,113) --
Net change in unrealized appreciation (depreciation)
on foreign exchange transactions and other assets
and liabilities -- -- -- 2
Net change in unrealized appreciation (depreciation)
on securities sold short 262,100 -- -- --
-------------- -------------- -------------- --------------
Net realized and unrealized gain (loss) on investments,
futures contracts, securities sold short, foreign
currencies and other assets and liabilities 11,507,773 8,896,036 5,951,269 4,219,076
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 10,746,964 $ 8,809,417 $ 6,134,322 $ 4,043,239
============== ============== ============== ==============
*Net of foreign withholding taxes on dividends of $ -- $ 159 $ -- $ 1,370
============== ============== ============== ==============
<Caption>
AGGRESSIVE MODERATE CONSERVATIVE
GROWTH GROWTH GROWTH
LIFESTAGE LIFESTAGE LIFESTAGE
FUND FUND FUND
----------------------------------------------
INCOME:
Income:
Interest $ -- $ -- $ --
Dividends* 43,975 255,732 287,035
-------------- -------------- --------------
Total income 43,975 255,732 287,035
-------------- -------------- --------------
Expenses:
Investment advisory and management fees 21,041 31,516 19,372
Distribution and service maintenance fees-Class A 3,161 4,514 4,689
Distribution and service maintenance fees-Class B 79,008 94,144 53,216
Distribution and service maintenance fees-Class II 2,798 9,419 11,215
Service fees-Class I -- -- --
Transfer agent fees and expenses-Class A 5,705 4,670 3,790
Transfer agent fees and expenses-Class B 19,380 13,565 6,545
Transfer agent fees and expenses-Class II 3,350 3,350 3,190
Transfer agent fees and expenses-Class I 1,675 1,475 1,475
Registration fees-Class A 9,950 10,030 10,510
Registration fees-Class B 12,630 12,310 11,510
Registration fees-Class II 8,955 9,675 9,315
Registration fees-Class I 10,675 11,848 10,955
Printing expense 31,412 18,488 9,142
Custodian fees and expenses 12,185 12,140 12,193
Audit and tax fees 33,605 33,169 33,323
Legal fees and expenses 6,126 6,729 5,865
Directors' fees and expenses 1,764 2,589 1,690
Dividend expense on securities sold short -- -- --
Miscellaneous expenses 7,015 7,018 6,557
-------------- -------------- --------------
Total expenses 270,435 286,649 214,552
Less: expenses waived/reimbursed by investment adviser (106,118) (61,575) (72,528)
Less: Fee paid indirectly (Note 9) -- -- --
Less: custody credits earned on cash balances -- -- --
-------------- -------------- --------------
Net expenses 164,317 225,074 142,024
-------------- -------------- --------------
Net investment income (loss) (120,342) 30,658 145,011
-------------- -------------- --------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments (1,018,539) (1,312,954) (743,235)
Net realized gain (loss) on futures contracts -- -- --
Net realized gain (loss) on securities sold short -- -- --
Net realized gain (loss) on foreign exchange and
other assets and liabilities -- -- --
Net change in unrealized appreciation (depreciation)
on investments 5,444,669 6,539,464 3,033,761
Net change in unrealized appreciation (depreciation)
on futures contracts -- -- --
Net change in unrealized appreciation (depreciation)
on foreign exchange transactions and other assets
and liabilities -- -- --
Net change in unrealized appreciation (depreciation)
on securities sold short -- -- --
-------------- -------------- --------------
Net realized and unrealized gain (loss) on investments,
futures contracts, securities sold short, foreign
currencies and other assets and liabilities 4,426,130 5,226,510 2,290,526
-------------- -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 4,305,788 $ 5,257,168 $ 2,435,537
============== ============== ==============
*Net of foreign withholding taxes on dividends of $ -- $ -- $ --
============== ============== ==============
</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
------------------------------ ------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2003 2002 2003 2002
--------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income (loss) $ (760,809) $ (1,116,235) $ (86,619) $ (393,346)
Net realized gain (loss) on investments (637,572) (17,583,650) (4,260,050) (15,675,665)
Net realized gain (loss) on capital gain distributions from
underlying funds -- -- -- --
Net realized gain (loss) on futures contracts -- -- -- --
Net realized gain (loss) on securities sold short (244,929) -- -- --
Net realized gain (loss) on foreign exchange transactions
and other assets and liabilities -- -- -- --
Net change in unrealized appreciation (depreciation) on
investments 12,128,174 (5,200,198) 13,156,086 (2,347,140)
Net change in unrealized appreciation (depreciation) on
futures contracts -- -- -- --
Net change in unrealized appreciation (depreciation) on
foreign exchange transactions and other assets and
liabilities -- -- -- --
Net change in unrealized appreciation (depreciation) on
securities sold short 262,100 422,091 -- --
-------------- -------------- -------------- --------------
Net increase (decrease) in net assets resulting from
operations 10,746,964 (23,477,992) 8,809,417 (18,416,151)
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Class A) -- -- -- --
Net investment income (Class B) -- -- -- --
Net investment income (Class II) -- -- -- --
Net investment income (Class I) -- -- -- --
-------------- -------------- -------------- ---------------
Total distributions to shareholders -- -- -- --
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS (NOTE 8) (5,616,681) (9,222,459) (16,922,143) (25,890,226)
-------------- -------------- -------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 5,130,283 (32,700,451) (8,112,726) (44,306,377)
NET ASSETS:
Beginning of period 44,297,573 76,998,024 68,719,749 113,026,126
-------------- -------------- -------------- --------------
End of period $ 49,427,856 $ 44,297,573 $ 60,607,023 $ 68,719,749
============== ============== ============== ==============
Accumulated undistributed net investment income (loss) $ (3,177) $ (2,629) $ (8,076) $ (7,269)
============== ============== ============== ==============
<Caption>
STOCK INDEX FUND
------------------------------
FOR THE FOR THE
YEAR YEAR
ENDED ENDED
OCTOBER 31, OCTOBER 31,
2003 2002
------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income (loss) $ 183,053 $ 101,290
Net realized gain (loss) on investments (155,844) (1,116,427)
Net realized gain (loss) on capital gain distributions from
underlying funds -- --
Net realized gain (loss) on futures contracts 333,198 (501,587)
Net realized gain (loss) on securities sold short -- --
Net realized gain (loss) on foreign exchange transactions
and other assets and liabilities -- --
Net change in unrealized appreciation (depreciation) on
investments 5,801,028 (4,194,388)
Net change in unrealized appreciation (depreciation) on
futures contracts (27,113) 73,796
Net change in unrealized appreciation (depreciation) on
foreign exchange transactions and other assets and
liabilities -- --
Net change in unrealized appreciation (depreciation) on
securities sold short -- --
-------------- --------------
Net increase (decrease) in net assets resulting from
operations 6,134,322 (5,637,316)
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Class A) (69,075) (50,367)
Net investment income (Class B) (33,854) (4,344)
Net investment income (Class II) (5,066) (282)
Net investment income (Class I) -- --
-------------- --------------
Total distributions to shareholders (107,995) (54,993)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS (NOTE 8) 5,881,677 3,765,201
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 11,908,004 (1,927,108)
NET ASSETS:
Beginning of period 29,002,095 30,929,203
-------------- --------------
End of period $ 40,910,099 $ 29,002,095
============== ==============
Accumulated undistributed net investment income (loss) $ 161,898 $ 87,654
============== ==============
</Table>
See Notes to Financial Statements
4
<Page>
<Table>
<Caption>
AGGRESSIVE GROWTH
SCIENCE & TECHNOLOGY FUND LIFESTAGE FUND
------------------------------ ------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2003 2002 2003 2002
--------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income (loss) $ (175,837) $ (206,954) $ (120,342) $ 213,896
Net realized gain (loss) on investments (1,390,002) (5,035,553) (1,018,539) (4,812,315)
Net realized gain (loss) on capital gain distributions
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 exchange transactions
and other assets and liabilities (1,322) (1,525) -- --
Net change in unrealized appreciation (depreciation)
on investments 5,610,398 886,939 5,444,669 471,977
Net change in unrealized appreciation (depreciation)
on futures contracts -- -- -- --
Net change in unrealized appreciation (depreciation)
on foreign exchange transactions and other assets
and liabilities 2 -- -- --
Net change in unrealized appreciation (depreciation)
on securities sold short -- -- -- --
-------------- -------------- -------------- --------------
Net increase (decrease) in net assets resulting from operations 4,043,239 (4,357,093) 4,305,788 (3,935,868)
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Class A) -- -- (38,873) (31,219)
Net investment income (Class B) -- -- (59,391) (17,221)
Net investment income (Class II) -- -- (1,665) (344)
Net investment income (Class I) -- -- (87,062) (61,214)
-------------- -------------- -------------- --------------
Total distributions to shareholders -- -- (186,991) (109,998)
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS (NOTE 8) 647,408 (257,676) 1,323,973 1,241,280
-------------- -------------- -------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 4,690,647 (4,614,769) 5,442,770 (2,804,586)
NET ASSETS:
Beginning of period 9,227,375 13,842,144 19,060,270 21,864,856
-------------- -------------- -------------- --------------
End of period $ 13,918,022 $ 9,227,375 $ 24,503,040 $ 19,060,270
============== ============== ============== ==============
Accumulated undistributed net investment income (loss) $ (341) $ (226) $ (129) $ 111,027
============== ============== ============== ==============
</Table>
See Notes to Financial Statements
5
<Page>
<Table>
<Caption>
MODERATE GROWTH CONSERVATIVE GROWTH
LIFESTAGE FUND LIFESTAGE FUND
------------------------------ ------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2003 2002 2003 2002
--------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income (loss) $ 30,658 $ 492,973 $ 145,011 $ 467,516
Net realized gain (loss) on investments (1,312,954) (3,977,340) (743,235) (1,943,093)
Net realized gain (loss) on capital gain distributions 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 exchange transactions
and other assets and liabilities -- -- -- --
Net change in unrealized appreciation (depreciation)
on investments 6,539,464 (688,725) 3,033,761 (255,689)
Net change in unrealized appreciation (depreciation)
on futures contracts -- -- -- --
Net change in unrealized appreciation (depreciation)
on foreign exchange transactions and other assets
and liabilities -- -- -- --
Net change in unrealized appreciation (depreciation)
on securities sold short -- -- -- --
-------------- -------------- -------------- --------------
Net increase (decrease) in net assets resulting from operations 5,257,168 (3,966,984) 2,435,537 (1,621,030)
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Class A) (59,132) (50,695) (99,551) (76,020)
Net investment income (Class B) (105,333) (78,487) (122,535) (127,052)
Net investment income (Class II) (9,927) (4,373) (22,240) (8,928)
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) 5,050,794 5,131,531 1,529,906 822,814
-------------- -------------- -------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 9,939,977 901,554 3,570,449 (1,138,217)
NET ASSETS:
Beginning of period 27,634,326 26,732,772 18,279,066 19,417,283
-------------- -------------- -------------- --------------
End of period $ 37,574,303 $ 27,634,326 $ 21,849,515 $ 18,279,066
============== ============== ============== ==============
Accumulated undistributed net investment income $ 12,298 $ 349,625 $ 108,039 $ 358,022
============== ============== ============== ==============
</Table>
See Notes to Financial Statements
6
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
FINANCIAL HIGHLIGHTS
BIOTECH/HEALTH FUND
<Table>
<Caption>
NET DIVIDENDS
NET GAIN (LOSS) TOTAL FROM
NET ASSET INVEST- ON INVEST- FROM NET
VALUE, MENT MENTS (BOTH INVEST- INVEST-
PERIOD BEGINNING INCOME REALIZED AND MENT MENT
ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME
- ------------------- ---------- ---------- ------------ ---------- ----------
CLASS A
6/14/00-10/31/00(3) $ 12.50 $ (0.02) $ 3.48 $ 3.46 $ --
10/31/01 15.96 (0.06) (4.32) (4.38) --
10/31/02 11.03 (0.13) (3.28) (3.41) --
10/31/03 7.62 (0.11) 2.30 2.19 --
CLASS B
6/14/00-10/31/00(3) $ 12.50 $ (0.05) $ 3.47 $ 3.42 $ --
10/31/01 15.92 (0.14) (4.31) (4.45) --
10/31/02 10.92 (0.19) (3.23) (3.42) --
10/31/03 7.50 (0.16) 2.25 2.09 --
CLASS II
6/14/00-10/31/00(3) $ 12.50 $ (0.05) $ 3.48 $ 3.43 $ --
10/31/01 15.93 (0.14) (4.31) (4.45) --
10/31/02 10.93 (0.19) (3.23) (3.42) --
10/31/03 7.51 (0.16) 2.26 2.10 --
<Caption>
RATIO OF NET
DISTRI- NET NET INVESTMENT
BUTIONS ASSET ASSETS RATIO OF INCOME (LOSS)
FROM TOTAL VALUE, END OF EXPENSES TO
PERIOD CAPITAL DISTRI- END OF TOTAL PERIOD TO AVERAGE AVERAGE PORTFOLIO
ENDED GAINS BUTIONS PERIOD RETURN(2) (000'S) NET ASSETS NET ASSETS TURNOVER
- -------------------- ---------- ---------- ---------- ----------- --------- --------------- ---------------- ---------
CLASS A
6/14/00-10/31/00(3)
10/31/01 $ -- $ -- $ 15.96 27.68% $ 30,489 1.55%(4)(5)(6) (0.28)%(4)(5)(6) 112%
10/31/02 (0.55) (0.55) 11.03 (27.92) 27,865 1.55(5)(6) (0.50)(5)(6) 333
10/31/03 -- -- 7.62 (30.92) 16,092 1.55(5) (1.38)(5) 340
-- -- 9.81 28.74 18,924 1.55(5) (1.32)(5) 236
CLASS B
6/14/00-10/31/00(3) $ -- $ -- $ 15.92 27.36% $ 23,457 2.20%(4)(5)(6) (1.08)%(4)(5)(6) 112%
10/31/01 (0.55) (0.55) 10.92 (28.45) 25,552 2.20(5)(6) (1.18)(5)(6) 333
10/31/02 -- -- 7.50 (31.32) 15,757 2.20(5) (2.03)(5) 340
10/31/03 -- -- 9.59 27.87 17,843 2.20(5) (1.97)(5) 236
CLASS II
6/14/00-10/31/00(3) $ -- $ -- $ 15.93 27.44% $ 20,386 2.20%(4)(5)(6) (1.07)%(4)(5)(6) 112%
10/31/01 (0.55) (0.55) 10.93 (28.43) 23,581 2.20(5)(6) (1.17)(5)(6) 333
10/31/02 -- -- 7.51 (31.29) 12,448 2.20(5) (2.03)(5) 340
10/31/03 -- -- 9.61 27.96 12,662 2.20(5) (1.97)(5) 236
</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 10/31/03
----------- --------- ----------- -----------
Biotech/Health Fund Class A 0.49% 0.19% 0.20% 0.23%
Biotech/Health Fund Class B 0.96 0.21 0.20 0.26
Biotech/Health Fund Class II 1.09 0.20 0.21 0.33
</Table>
(6) The ratio reflects an expense cap which is net of custody credits of less
than 0.01%
See Notes to Financial Statements
7
<Page>
TAX MANAGED EQUITY FUND
<Table>
<Caption>
NET DIVIDENDS
NET GAIN (LOSS) TOTAL FROM
NET ASSET INVEST- ON INVEST- FROM NET
VALUE, MENT MENTS (BOTH INVEST- INVEST-
PERIOD BEGINNING INCOME REALIZED AND MENT MENT
ENDED OF PERIOD (LOSS)(1) UNREALIZED) OPERATIONS INCOME
- ------------------- ---------- --------- ----------- -----------------------
CLASS A
3/01/99-10/31/99(3) $ 12.50 $ -- $ 1.15 $ 1.15 $ --
10/31/00 13.65 (0.02) 0.91 0.89 --
10/31/01 14.54 -- (3.50) (3.50) --
10/31/02 11.04 0.01 (2.05) (2.04) --
10/31/03 9.00 0.03 1.46 1.49 --
CLASS B
3/01/99-10/31/99(3) $ 12.50 $ (0.06) $ 1.14 $ 1.08 $ --
10/31/00 13.58 (0.11) 0.91 0.80 --
10/31/01 14.38 (0.08) (3.45) (3.53) --
10/31/02 10.85 (0.06) (2.00) (2.06) --
10/31/03 8.79 (0.03) 1.41 1.38 --
CLASS II
3/01/99-10/31/99(3) $ 12.50 $ (0.06) $ 1.16 $ 1.10 $ --
10/31/00 13.60 (0.11) 0.91 0.80 --
10/31/01 14.40 (0.08) (3.46) (3.54) --
10/31/02 10.86 (0.06) (2.00) (2.06) --
10/31/03 8.80 (0.03) 1.42 1.39 --
<Caption>
RATIO OF NET
DISTRI- NET NET INVESTMENT
BUTIONS ASSET ASSETS RATIO OF INCOME (LOSS)
FROM TOTAL VALUE, END OF EXPENSES TO
PERIOD CAPITAL DISTRI- END OF TOTAL PERIOD TO AVERAGE AVERAGE PORTFOLIO
ENDED GAINS BUTIONS PERIOD RETURN(2) (000'S) NET ASSETS NET ASSETS TURNOVER
- -------------------- --------- ---------- ---------- ---------- ----------- ---------------- ------------------- -----------
CLASS A
3/01/99-10/31/99(3) $ -- $ -- $ 13.65 9.20% $ 25,067 1.45%(4)(5)(6) (0.02)%(4)(5)(6) 9%
10/31/00 -- -- 14.54 6.52 38,802 1.45(5)(6) (0.14)(5)(6) 7
10/31/01 -- -- 11.04 (24.07) 28,739 1.45(5)(6) (0.03)(5)(6) 19
10/31/02 -- -- 9.00 (18.48) 16,587 1.45(5) 0.09(5) 16
10/31/03 -- -- 10.49 16.56 14,877 1.45(5) 0.35(5) 13
CLASS B
3/01/99-10/31/99(3) $ -- $ -- $ 13.58 8.64% $ 27,524 2.10%(4)(5)(6) (0.74)%(4)(5)(6) 9%
10/31/00 -- -- 14.38 5.89 47,972 2.10(5)(6) (0.79)(5)(6) 7
10/31/01 -- -- 10.85 (24.55) 40,677 2.10(5)(6) (0.68)(5)(6) 19
10/31/02 -- -- 8.79 (18.99) 25,703 2.10(5) (0.56)(5) 16
10/31/03 -- -- 10.17 15.70 22,694 2.10(5) (0.30)(5) 13
CLASS II
3/01/99-10/31/99(3) $ -- $ -- $ 13.60 8.80% $ 27,884 2.10%(4)(5)(6) (0.75)%(4)(5)(6) 9%
10/31/00 -- -- 14.40 5.88 51,348 2.10(5)(6) (0.79)(5)(6) 7
10/31/01 -- -- 10.86 (24.58) 43,610 2.10(5)(6) (0.68)(5)(6) 19
10/31/02 -- -- 8.80 (18.97) 26,430 2.10(5) (0.56)(5) 16
10/31/03 -- -- 10.19 15.80 23,036 2.10(5) (0.30)(5) 13
</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 10/31/03
----------- ---------- ----------- ----------- ----------
Tax Managed Equity Fund Class A 1.07% 0.23% 0.15% 0.21% 0.26%
Tax Managed Equity Fund Class B 0.84 0.22 0.15 0.20 0.23
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
See Notes to Financial Statements
8
<Page>
STOCK INDEX FUND
<Table>
<Caption>
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)
10/31/03 7.87 0.08 1.49 1.57 (0.07) -- (0.07) 9.37 20.09
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)
10/31/03 7.81 0.03 1.47 1.50 (0.01) -- (0.01) 9.30 19.29
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)
10/31/03 7.78 0.03 1.46 1.49 (0.01) -- (0.01) 9.26 19.23
<Caption>
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
10/31/03 13,890 0.75(5) 1.01(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
10/31/03 23,601 1.40(5) 0.36(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
10/31/03 3,419 1.40(5) 0.37(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 10/31/03
--------- -------- ---------- -------- ---------
Stock Index Fund Class A 0.71% 0.34% 1.10% 0.67% 0.64%
Stock Index Fund Class B 0.41 0.34 1.11 0.65 0.66
Stock Index Fund Class II* -- 0.40(4) 1.10 1.07 0.87
</Table>
* 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>
SCIENCE & TECHNOLOGY FUND
<Table>
<Caption>
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)
10/31/03 2.18 (0.03) 0.97 0.94 -- -- -- 3.12 43.12
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)
10/31/03 2.14 (0.04) 0.95 0.91 -- -- -- 3.05 42.52
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)
10/31/03 2.08 (0.04) 0.93 0.89 -- -- -- 2.97 42.79
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)
10/31/03 2.19 (0.03) 0.98 0.95 -- -- -- 3.14 43.38
<Caption>
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
10/31/03 3,393 1.50(5)(7) (1.13)(5)(7) 45
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
10/31/03 9,367 2.15(5)(7) (1.78)(5)(7) 45
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
10/31/03 949 2.15(5)(7) (1.78)(5)(7) 45
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
10/31/03 209 1.40(5)(7) (1.03)(5)(7) 45
</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 10/31/03
----------- -------- -------- --------
Science & Technology Fund Class A 0.68% 2.10% 1.38% 1.86%
Science & Technology Fund Class B 0.68 2.11 1.21 1.71
Science & Technology Fund Class II* 0.66 2.10 1.81 3.11
Science & Technology Fund Class I 0.68 2.10 4.66 6.40
</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) 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 0.02% for Class A, B, II and I.
* 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>
<Table>
<Caption>
AGGRESSIVE GROWTH LIFESTAGE FUND
DIVI-
NET DENDS DIS-
NET GAIN (LOSS) TOTAL FROM TRI- 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
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)
10/31/03 6.46 (0.02) 1.42 1.40 (0.09) -- (0.09) 7.77 21.91
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)
10/31/03 6.45 (0.06) 1.41 1.35 (0.04) -- (0.04) 7.76 21.04
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)
10/31/03 6.51 (0.06) 1.43 1.37 (0.04) -- (0.04) 7.84 21.15
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)
10/31/03 6.48 (0.01) 1.41 1.40 (0.09) -- (0.09) 7.79 21.98
<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
10/31/03 3,673 0.48(6) (0.27)(6) 24
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
10/31/03 11,818 1.13(6) (0.92)(6) 24
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
10/31/03 533 1.13(6) (0.93)(6) 24
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
10/31/03 8,479 0.38(6) (0.17)(6) 24
</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>
10/31/03
----------
Aggressive Growth LifeStage Fund Class A 0.66%
Aggressive Growth LifeStage Fund Class B 0.47
Aggressive Growth LifeStage Fund Class II* 3.44
Aggressive Growth LifeStage Fund Class I 0.33
</Table>
* 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>
<Table>
<Caption>
MODERATE GROWTH LIFESTAGE FUND
DIVI-
NET DENDS DIS-
NET GAIN (LOSS) TOTAL FROM TRI- 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
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)
10/31/03 7.65 0.03 1.28 1.31 (0.12) -- (0.12) 8.84 17.42
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)
10/31/03 7.64 (0.02) 1.29 1.27 (0.07) -- (0.07) 8.84 16.74
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)
10/31/03 7.65 (0.03) 1.30 1.27 (0.07) -- (0.07) 8.85 16.72
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)
10/31/03 7.65 0.04 1.28 1.32 (0.13) -- (0.13) 8.84 17.55
<Caption>
MODERATE 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) $ 1,918 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
10/31/03 5,820 0.48(6) 0.33(6) 30
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
10/31/03 14,170 1.13(6) (0.31)(6) 30
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
10/31/03 1,601 1.13(6) (0.33)(6) 30
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
10/31/03 15,984 0.36(6) 0.44(6) 30
</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>
10/31/03
--------
Moderate Growth LifeStage Fund Class A 0.30%
Moderate Growth LifeStage Fund Class B 0.19
Moderate Growth LifeStage Fund Class II* 1.01
Moderate Growth LifeStage Fund Class I 0.09
</Table>
* 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>
<Table>
<Caption>
CONSERVATIVE GROWTH LIFESTAGE FUND
DIVI-
NET DENDS DIS-
NET GAIN (LOSS) TOTAL FROM TRI- 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
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)
10/31/03 8.43 0.08 1.03 1.11 (0.20) -- (0.20) 9.34 13.53
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)
10/31/03 8.44 0.03 1.02 1.05 (0.15) -- (0.15) 9.34 12.62
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)
10/31/03 8.46 0.03 1.03 1.06 (0.15) -- (0.15) 9.37 12.71
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)
10/31/03 8.44 0.10 1.02 1.12 (0.21) -- (0.21) 9.35 13.64
<Caption>
CONSERVATIVE 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) $ 1,790 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
10/31/03 6,789 0.48(6) 0.97(6) 47
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
10/31/03 7,567 1.12(6) 0.37(6) 47
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
10/31/03 1,662 1.13(6) 0.33(6) 47
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
10/31/03 5,831 0.38(6) 1.13(6) 47
</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>
10/31/03
--------
Conservative Growth LifeStage Fund Class A 0.37%
Conservative Growth LifeStage Fund Class B 0.34
Conservative Growth LifeStage Fund Class II* 0.91
Conservative Growth LifeStage Fund Class I 0.29
</Table>
* 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 -- OCTOBER 31, 2003
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
- --------------------------------------------------------------------------------
COMMON STOCK -- 71.5%
BIOMEDICAL -- 8.7%
Amgen, Inc.+ 25,000 $ 1,544,000
Genzyme Corp.+ 60,000 2,754,000
--------------
4,298,000
--------------
BIOTECHNOLOGY -- 4.1%
Biomarin Pharmaceutical, Inc.+ 100,000 700,000
Medicines Co.+(1) 50,000 1,332,500
--------------
2,032,500
--------------
DISTRIBUTION -- 1.5%
Caremark Rx, Inc.+(1) 30,000 751,500
--------------
GENOMICS -- 3.8%
Introgen Therapeutics, Inc.+ 75,000 618,000
Invitrogen Corp.+ 20,000 1,271,800
--------------
1,889,800
--------------
HEALTH MAINTENANCE ORGANIZATIONS -- 6.0%
Anthem, Inc.+ 30,000 2,052,900
Centene Corp.+ 30,000 918,300
--------------
2,971,200
--------------
HEALTH SERVICES -- 4.8%
Manor Care, Inc. 50,000 1,664,000
Medco Health Solutions, Inc.+ 2,412 80,078
United Surgical Partners International, Inc.+(1) 20,000 603,200
--------------
2,347,278
--------------
MEDICAL DEVICES -- 4.4%
Integra LifeSciences Holdings+ 65,000 2,193,100
--------------
MEDICAL DRUGS -- 17.3%
Celgene Corp.+(1) 50,000 2,084,500
Cephalon, Inc.+(1) 50,000 2,348,000
Cubist Pharmaceuticals, Inc.+(1) 100,000 1,162,000
CVS Corp. 20,000 703,600
Pozen, Inc.+ 30,000 375,900
Sepracor, Inc.+ 40,000 1,065,200
Watson Pharmaceuticals, Inc.+ 20,000 785,400
--------------
8,524,600
--------------
<Caption>
SHARES/
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 3)
- --------------------------------------------------------------------------------
MEDICAL INFORMATION SYSTEMS -- 1.3%
Covance, Inc.+ 25,000 $ 650,750
--------------
PHARMACEUTICALS -- 16.6%
Eon Labs, Inc.+(1) 60,000 2,526,600
Ilex Oncology, Inc.+ 100,000 2,086,000
Pfizer, Inc.(1) 40,000 1,264,000
Pharmaceutical Resources, Inc.+(1) 20,000 1,445,600
Tanox, Inc.+ 50,000 897,500
--------------
8,219,700
--------------
THERAPEUTICS -- 3.0%
Nuvelo, Inc.+ 185,000 612,350
Serono SA ADR(1) 50,000 862,000
--------------
1,474,350
--------------
TOTAL INVESTMENT SECURITIES
(cost $28,137,536) 35,352,778
--------------
REPURCHASE AGREEMENTS -- 27.0%
State Street Bank & Trust Co. Joint
Repurchase Agreement
(Note 3)(1) $ 6,337 6,337,000
UBS Warburg, LLC Joint Repurchase
Agreement (Note 3)(1) 7,000 7,000,000
--------------
TOTAL REPURCHASE AGREEMENTS
(cost $13,337,000) 13,337,000
--------------
TOTAL INVESTMENTS --
(cost $41,474,536*) 48,689,778
--------------
COMMON STOCK-SHORT POSITIONS -- (13.1%)
BIOMEDICAL -- (0.7%)
Decode Genetics, Inc.+ (50,000) (352,500)
--------------
BIOTECHNOLOGY -- (0.6%)
Corixa Corp.+ (50,000) (298,500)
--------------
DISTRIBUTION -- (2.4%)
Cardinal Health, Inc. (20,000) (1,186,800)
--------------
GENOMICS -- (3.6%)
Applera Corporation Celera Genomics Group+ (50,000) (668,500)
Genencor International, Inc.+ (27,000) (413,100)
Human Genome Sciences, Inc.+ (50,000) (695,500)
--------------
(1,777,100)
--------------
</Table>
14
<Page>
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
- --------------------------------------------------------------------------------
COMMON STOCK-SHORT POSITIONS -- (CONTINUED)
MEDICAL DEVICES -- (2.6%)
INAMED Corp.+ (15,000) $ (1,295,550)
--------------
MEDICAL DRUGS -- (1.2%)
OSI Pharmaceuticals, Inc.+ (20,000) (560,000)
--------------
THERAPEUTICS -- (2.0%)
Forest Laboratories, Inc.+ (20,000) (1,000,200)
--------------
TOTAL COMMON STOCK-SHORT POSITIONS -- (13.1%)
(proceeds $6,390,068) (6,470,650)
--------------
Other assets less liabilities 14.6% 7,208,728
------- --------------
NET ASSETS -- 100.0% $ 49,427,856
======= ==============
</Table>
- ----------
* See Note 7
+ Non-income producing securities
(1) The security or a portion thereof represents collateral for securities sold
short.
See Notes to Financial Statements
15
<Page>
TAX MANAGED EQUITY FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2003
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
- --------------------------------------------------------------------------------
COMMON STOCK -- 99.0%
AEROSPACE & MILITARY TECHNOLOGY -- 2.6%
Raytheon Co. 17,000 $ 450,160
United Technologies Corp. 13,000 1,100,970
--------------
1,551,130
--------------
APPAREL & TEXTILES -- 0.7%
Jones Apparel Group, Inc. 12,000 414,000
--------------
BANKS -- 5.4%
Bank One Corp. 24,500 1,040,025
FleetBoston Financial Corp. 10,000 403,900
Mellon Financial Corp. 14,000 418,180
U.S. Bancorp 51,831 1,410,840
--------------
3,272,945
--------------
BROADCASTING & MEDIA -- 3.8%
E.W. Scripps Co., Class A 5,000 464,550
News Corp., Ltd. ADR 12,600 449,190
Tribune Co. 9,000 441,450
Viacom, Inc., Class B 23,000 917,010
--------------
2,272,200
--------------
BUSINESS SERVICES -- 0.9%
Accenture, Ltd., Class A+ 23,000 538,200
--------------
CHEMICALS -- 0.7%
Air Products and Chemicals, Inc. 9,000 408,690
--------------
COMPUTER SOFTWARE -- 5.0%
First Data Corp. 5,000 178,500
Microsoft Corp. 84,200 2,201,830
Oracle Corp.+ 30,000 358,800
SunGard Data Systems, Inc. 10,000 280,500
--------------
3,019,630
--------------
COMPUTERS & BUSINESS EQUIPMENT -- 6.2%
Dell, Inc.+ 19,000 686,280
Intel Corp. 46,700 1,543,435
International Business
Machines Corp. 16,800 1,503,264
--------------
3,732,979
--------------
CONGLOMERATE -- 4.6%
General Electric Co. 70,300 $ 2,039,403
Tyco International, Ltd. 34,500 720,360
--------------
2,759,763
--------------
ELECTRONICS -- 3.5%
Altera Corp.+ 15,000 303,450
Applied Materials, Inc.+ 14,000 327,180
Johnson Controls, Inc. 11,300 1,215,089
Linear Technology Corp. 7,000 298,270
--------------
2,143,989
--------------
ENERGY SERVICES -- 1.1%
Baker Hughes, Inc. 23,000 649,980
--------------
ENERGY SOURCES -- 5.7%
Anadarko Petroleum Corp. 7,000 305,340
ChevronTexaco Corp. 18,500 1,374,550
Exxon Mobil Corp. 49,120 1,796,810
--------------
3,476,700
--------------
FINANCIAL SERVICES -- 10.9%
Capital One Financial Corp. 7,500 456,000
CIT Group, Inc. 6,000 201,720
Citigroup, Inc. 51,333 2,433,184
Fannie Mae 9,000 645,210
Freddie Mac 11,000 617,430
Goldman Sachs Group, Inc. 12,002 1,126,988
Morgan Stanley 10,000 548,700
Washington Mutual, Inc. 13,350 584,062
--------------
6,613,294
--------------
FOOD, BEVERAGE & TOBACCO -- 4.7%
Altria Group, Inc. 18,800 874,200
Coca-Cola Co. 27,400 1,271,360
PepsiCo, Inc. 14,300 683,826
--------------
2,829,386
--------------
FOREST PRODUCTS -- 1.1%
Temple-Inland, Inc. 12,400 669,972
--------------
HOUSEHOLD PRODUCTS -- 3.8%
Gillette Co. 25,200 803,880
Procter & Gamble Co. 15,300 1,503,837
--------------
2,307,717
--------------
</Table>
16
<Page>
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
- --------------------------------------------------------------------------------
COMMON STOCK (CONTINUED)
INSURANCE -- 4.9%
Allstate Corp. 17,000 $ 671,500
Ambac Financial Group, Inc. 16,400 1,160,136
American International Group, Inc.# 11,580 704,411
RenaissanceRe Holdings Ltd. 10,000 449,800
--------------
2,985,847
--------------
MACHINERY -- 2.4%
Danaher Corp. 8,000 662,800
Deere & Co. 13,400 812,308
--------------
1,475,108
--------------
MEDICAL PRODUCTS -- 3.3%
Guidant Corp. 18,000 918,180
Johnson & Johnson 21,944 1,104,442
--------------
2,022,622
--------------
METALS & MINING -- 1.1%
Alcoa, Inc. 21,928 692,267
--------------
PHARMACEUTICALS -- 8.9%
Amgen, Inc.+ 12,000 741,120
Bristol-Myers Squibb Co. 19,100 484,567
Eli Lilly and Co. 17,400 1,159,188
Pfizer, Inc. 61,305 1,937,238
Schering-Plough Corp. 16,700 255,009
Wyeth 19,000 838,660
--------------
5,415,782
--------------
RESTAURANTS -- 0.3%
Yum! Brands, Inc. 5,000 170,700
--------------
RETAIL STORES -- 7.3%
Home Depot, Inc. 26,550 984,208
Target Corp. 24,700 981,578
TJX Cos, Inc. 30,500 640,195
Wal-Mart Stores, Inc. 30,800 1,815,660
--------------
4,421,641
--------------
<Caption>
SHARES/
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 3)
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS -- 7.2%
Cisco Systems, Inc.+ 70,400 $ 1,476,992
Comcast Corp., Class A 30,700 1,001,434
QUALCOMM, Inc. 8,000 380,000
SBC Communications, Inc. 22,900 549,142
Verizon Communications, Inc. 28,230 948,528
--------------
4,356,096
--------------
TRANSPORTATION -- 1.3%
Union Pacific Corp. 13,000 813,800
--------------
UTILITIES -- 1.6%
Dominion Resources, Inc. 5,000 308,000
Pinnacle West Capital Corp. 18,000 658,080
--------------
966,080
--------------
TOTAL INVESTMENT SECURITIES
(cost $65,506,208) 59,980,518
--------------
SHORT-TERM INVESTMENTS -- 1.2%
Time Deposit with State Street
Bank & Trust Co. 0.05% due 11/03/03
(cost: $756,000) 756 756,000
--------------
TOTAL INVESTMENTS --
(cost $66,262,208*) 100.2% 60,736,518
Liabilities in excess of other assets (0.2) (129,495)
------- --------------
NET ASSETS -- 100.0% $ 60,607,023
======= ==============
</Table>
- ----------
* See Note 7
+ Non-income producing securities
# Security represents an investment in an affiliated company. See Note 6.
ADR American Depository Receipt
See Notes to Financial Statements
17
<Page>
SUNAMERICA STOCK INDEX FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2003
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
- --------------------------------------------------------------------------------
COMMON STOCK -- 94.6%
AEROSPACE & MILITARY TECHNOLOGY -- 1.7%
Boeing Co. 3,350 $ 128,942
General Dynamics Corp. 790 66,123
Goodrich Corp. 470 12,981
Honeywell International, Inc. 3,430 104,992
Lockheed Martin Corp. 1,800 83,448
Northrop Grumman Corp. 730 65,262
Raytheon Co. 1,650 43,692
Rockwell Collins, Inc. 710 19,490
United Technologies Corp. 1,870 158,370
--------------
683,300
--------------
APPAREL & TEXTILES -- 0.4%
Cintas Corp. 680 29,009
Jones Apparel Group, Inc. 500 17,250
Liz Claiborne, Inc. 430 15,863
Nike, Inc., Class B 1,050 67,095
Reebok International, Ltd. 240 9,348
V.F. Corp. 430 18,253
--------------
156,818
--------------
AUTOMOTIVE -- 0.8%
AutoNation, Inc.+ 1,100 20,570
AutoZone, Inc.+ 360 34,596
Cooper Tire & Rubber Co. 290 5,702
Dana Corp. 590 9,605
Delphi Corp. 2,230 19,847
Ford Motor Co. 7,300 88,549
General Motors Corp. 2,230 95,154
Goodyear Tire & Rubber Co.+ 700 4,802
Harley Davidson, Inc. 1,210 57,366
Snap-on, Inc. 230 6,748
Visteon Corp. 520 3,359
--------------
346,298
--------------
BANKS -- 5.6%
AmSouth Bancorp. 1,400 33,068
Bank of America Corp. 5,950 450,594
Bank of New York Co., Inc. 3,070 95,753
Bank One Corp. 4,500 191,025
BB&T Corp. 2,150 83,141
Charter One Financial, Inc. 900 28,764
Comerica, Inc. 700 36,036
Fifth Third Bancorp 2,270 $ 131,569
First Tennessee National Corp. 500 22,680
FleetBoston Financial Corp. 4,190 169,234
Huntington Bancshares, Inc. 910 19,711
KeyCorp 1,680 47,460
Marshall & Ilsley Corp. 910 32,596
Mellon Financial Corp. 1,720 51,376
National City Corp. 2,450 80,017
North Fork Bancorp., Inc. 610 23,778
Northern Trust Corp. 880 40,876
PNC Financial Services Group, Inc. 1,120 59,998
Regions Financial Corp. 890 32,708
State Street Corp. 1,330 69,639
SunTrust Banks, Inc. 1,120 75,118
Synovus Financial Corp. 1,200 33,120
U.S. Bancorp 7,670 208,777
Union Planters Corp. 780 25,951
Wachovia Corp. 5,310 243,570
Zions Bancorp. 360 22,064
--------------
2,308,623
--------------
BROADCASTING & MEDIA -- 3.1%
Clear Channel Communications, Inc. 2,450 100,009
Dow Jones & Co., Inc. 320 16,630
Gannett Co., Inc. 1,070 89,998
Interpublic Group Cos., Inc.+ 1,560 23,213
Knight Ridder, Inc. 320 23,462
McGraw Hill Cos., Inc. 760 50,882
Meredith Corp. 200 9,704
Monster Worldwide, Inc.+ 450 11,462
New York Times Co., Class A 600 28,518
Omnicom Group, Inc. 760 60,648
Scientific Atlanta, Inc. 590 17,464
Time Warner, Inc.+ 17,970 274,761
Tribune Co. 1,250 61,313
Univision Communications, Inc.,
Class A+ 1,280 43,456
Viacom, Inc., Class B 6,990 278,691
Walt Disney Co. 8,140 184,290
--------------
1,274,501
--------------
BUSINESS SERVICES -- 1.1%
Allied Waste Industries, Inc.+ 830 9,362
Avery Dennison Corp. 440 23,135
Ball Corp. 230 12,926
</Table>
18
<Page>
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
- --------------------------------------------------------------------------------
COMMON STOCK -- (CONTINUED)
BUSINESS SERVICES -- (CONTINUED)
Bemis Co., Inc. 210 $ 9,710
Cendant Corp.+ 4,040 82,537
Convergys Corp.+ 570 9,154
Equifax, Inc. 560 13,687
Fluor Corp. 330 12,236
Genuine Parts Co. 690 21,956
Pactiv Corp.+ 630 13,892
Paychex, Inc. 1,500 58,380
Pitney Bowes, Inc. 930 38,223
Robert Half International, Inc.+ 680 16,055
RR Donnelley & Sons Co. 450 11,700
Sealed Air Corp.+ 340 18,098
W.W. Grainger, Inc. 360 16,481
Waste Management, Inc. 2,360 61,171
Waters Corp.+ 490 15,401
--------------
444,104
--------------
CHEMICALS -- 1.4%
Air Products and Chemicals, Inc. 910 41,323
Ashland, Inc. 270 10,055
Dow Chemical Co. 3,660 137,945
E.I. du Pont de Nemours & Co. 3,970 160,388
Eastman Chemical Co. 310 10,063
Ecolab, Inc. 1,030 27,697
Engelhard Corp. 500 14,290
Great Lakes Chemical Corp. 200 4,300
Hercules, Inc.+ 440 4,598
Monsanto Co. 1,040 26,052
PPG Industries, Inc. 680 39,202
Praxair, Inc. 650 45,227
Rohm and Haas Co. 890 34,977
Sigma-Aldrich Corp. 280 14,686
Vulcan Materials Co. 410 18,167
--------------
588,970
--------------
COMMUNICATION EQUIPMENT -- 0.5%
LSI Logic Corp.+ 1,510 13,953
Lucent Technologies, Inc.+ 16,570 53,024
Motorola, Inc. 9,270 125,423
Tellabs, Inc.+ 1,640 12,349
--------------
204,749
--------------
COMPUTER SOFTWARE -- 5.1%
Adobe Systems, Inc. 930 $ 40,771
Autodesk, Inc. 450 8,663
Automatic Data Processing, Inc. 2,380 89,821
BMC Software, Inc.+ 910 15,816
Citrix Systems, Inc.+ 660 16,685
Computer Associates International, Inc. 2,310 54,331
Computer Sciences Corp.+ 750 29,715
Compuware Corp.+ 1,520 8,542
Electronic Data Systems Corp. 1,910 40,969
First Data Corp. 2,950 105,315
Fiserv, Inc.+ 770 27,196
Intuit, Inc.+ 820 40,984
Mercury Interactive Corp.+ 340 15,790
Microsoft Corp.@ 43,060 1,126,019
NCR Corp.+ 380 13,657
Novell, Inc.+ 1,480 8,688
Nvidia Corp.+ 630 11,138
Oracle Corp.+ 20,840 249,246
Parametric Technology Corp.+ 1,060 3,297
PeopleSoft, Inc.+ 1,450 30,102
Siebel Systems, Inc.+ 1,970 24,802
SunGard Data Systems, Inc.+ 1,140 31,977
Unisys Corp.+ 1,310 20,122
VERITAS Software Corp.+ 1,700 61,455
--------------
2,075,101
--------------
COMPUTERS & BUSINESS EQUIPMENT -- 5.9%
Apple Computer, Inc.+ 1,440 32,962
Dell, Inc.+ 10,230 369,507
EMC Corp.+ 8,740 120,962
Gateway, Inc.+ 1,290 6,502
Hewlett-Packard Co. 12,160 271,289
Intel Corp. 25,920 856,656
International Business Machines Corp. 6,890 616,517
Lexmark International Group, Inc.+ 510 37,541
Network Appliance, Inc.+ 1,360 33,565
Sun Microsystems, Inc.+ 12,860 50,926
Xerox Corp.+ 3,150 33,075
--------------
2,429,502
--------------
CONGLOMERATE -- 4.2%
3M Co. 3,120 246,075
General Electric Co.@ 39,890 1,157,209
ITT Industries, Inc. 370 25,156
Schlumberger Ltd. 2,320 108,970
</Table>
19
<Page>
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
- --------------------------------------------------------------------------------
COMMON STOCK -- (CONTINUED)
CONGLOMERATE -- (CONTINUED)
Textron, Inc. 540 $ 26,833
Tyco International, Ltd. 7,950 165,996
--------------
1,730,239
--------------
EDUCATION -- 0.1%
Apollo Group, Inc., Class A+ 700 44,471
--------------
ELECTRONICS -- 3.0%
Advanced Micro Devices, Inc.+ 1,380 20,976
Agilent Technologies, Inc.+ 1,880 46,850
Altera Corp.+ 1,520 30,750
American Power Conversion Corp.+ 790 15,982
Analog Devices, Inc.+ 1,460 64,722
Applera Corp.-- Applied Biosystems
Group 830 19,156
Applied Materials, Inc.+ 6,600 154,242
Applied Micro Circuits Corp.+ 1,210 7,042
Broadcom Corp., Class A+ 1,180 37,701
Emerson Electric Co. 1,680 95,340
Jabil Circuit, Inc.+ 790 22,001
Johnson Controls, Inc. 360 38,711
KLA-Tencor Corp.+ 760 43,571
Linear Technology Corp. 1,250 53,262
Maxim Integrated Products, Inc.+ 1,290 64,126
Micron Technology, Inc.+ 2,430 34,846
Millipore Corp.+ 190 8,331
Molex, Inc. 760 23,856
National Semiconductor Corp.+ 730 29,660
Novellus Systems, Inc.+ 600 24,774
PMC-Sierra, Inc.+ 680 12,356
Power-One, Inc.+ 330 2,990
QLogic Corp.+ 380 21,299
Rockwell Automation, Inc. 740 22,977
Sanmina-SCI Corp.+ 2,030 21,416
Solectron Corp.+ 3,300 18,282
Symbol Technologies, Inc. 920 11,491
Tektronix Inc. 340 8,728
Teradyne, Inc.+ 750 17,085
Texas Instruments, Inc. 6,890 199,259
Thomas & Betts Corp. 230 4,094
Xilinx, Inc.+ 1,360 43,112
--------------
1,218,988
--------------
ENERGY SERVICES -- 0.5%
Baker Hughes, Inc. 1,330 $ 37,586
BJ Services Co.+ 630 20,670
Devon Energy Corp. 920 44,620
Dynegy, Inc., Class A+ 1,490 5,975
Halliburton Co. 1,740 41,551
Nabors Industries, Ltd.+ 580 21,924
Rowan Cos., Inc.+ 370 8,862
Transocean Sedco Forex, Inc.+ 1,270 24,371
--------------
205,559
--------------
ENERGY SOURCES -- 4.6%
Amerada Hess Corp. 360 18,583
Anadarko Petroleum Corp. 990 43,184
Apache Corp. 640 44,621
Burlington Resources, Inc. 800 38,912
ChevronTexaco Corp. 4,260 316,518
ConocoPhillips 2,710 154,876
El Paso Corp. 2,390 17,543
EOG Resources, Inc. 460 19,384
Exxon Mobil Corp.@ 26,430 966,809
Kerr-Mcgee Corp. 400 16,600
Keyspan Corp. 630 22,031
Kinder Morgan, Inc. 490 26,239
Marathon Oil Corp. 1,240 36,667
Nicor, Inc. 180 6,169
NiSource, Inc. 1,050 21,746
Noble Corp.+ 530 18,195
Occidental Petroleum Corp. 1,520 53,595
Peoples Energy Corp. 150 6,068
Sempra Energy 890 24,742
Sunoco, Inc. 310 13,566
Unocal Corp. 1,030 32,630
--------------
1,898,678
--------------
ENTERTAINMENT PRODUCTS -- 0.4%
Brunswick Corp. 360 10,681
Eastman Kodak Co. 1,140 27,850
Electronic Arts, Inc.+ 590 58,434
Hasbro, Inc. 690 15,042
Mattel, Inc. 1,750 33,880
--------------
145,887
--------------
FINANCIAL SERVICES -- 9.5%
American Express Co. 5,130 240,751
</Table>
20
<Page>
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
- --------------------------------------------------------------------------------
COMMON STOCK -- (CONTINUED)
FINANCIAL SERVICES -- (CONTINUED)
Bear Stearns Cos., Inc. 400 $ 30,500
Capital One Financial Corp. 910 55,328
Charles Schwab & Co., Inc. 5,390 73,088
Citigroup, Inc. 20,510 972,174
Concord EFS, Inc.+ 1,940 20,739
Countrywide Credit Industries, Inc. 540 56,765
Deluxe Corp. 210 8,478
Fannie Mae 3,880 278,157
Federated Investors, Inc., Class B 430 11,890
Franklin Resources, Inc. 1,000 47,420
Freddie Mac 2,770 155,480
Golden West Financial Corp. 610 61,262
Goldman Sachs Group, Inc. 1,890 177,471
H & R Block, Inc. 720 33,905
J.P. Morgan Chase & Co. 8,110 291,149
Janus Capital Group, Inc. 950 13,433
Lehman Brothers Holdings, Inc. 1,100 79,200
MBNA Corp. 5,090 125,977
Merrill Lynch & Co., Inc. 3,720 220,224
Moodys Corp. 590 34,120
Morgan Stanley 4,330 237,587
Providian Financial Corp.+ 1,160 12,888
SLM Corp. 1,800 70,488
South Trust Corp. 1,340 42,679
T. Rowe Price Group, Inc. 490 20,163
Washington Mutual, Inc. 3,680 161,000
Wells Fargo & Co. 6,690 376,781
--------------
3,909,097
--------------
FOOD, BEVERAGE & TOBACCO -- 4.7%
Adolph Coors Co., Class B 150 8,408
Altria Group, Inc. 8,080 375,720
Anheuser-Busch Cos., Inc. 3,290 162,065
Archer-Daniels-Midland Co. 2,570 36,880
Brown-Forman Corp., Class B 240 20,251
Campbell Soup Co. 1,640 42,509
Coca-Cola Co. 9,790 454,256
Coca-Cola Enterprises, Inc. 1,800 36,288
ConAgra Foods, Inc. 2,140 51,018
General Mills, Inc. 1,480 66,378
H.J. Heinz & Co. 1,400 49,462
Hershey Foods Corp. 520 40,092
Kellogg Co. 1,630 54,002
McCormick & Co., Inc. 560 16,598
Pepsi Bottling Group, Inc. 1,070 $ 23,850
PepsiCo, Inc. 6,870 328,523
R.J. Reynolds Tobacco Holdings, Inc. 340 16,330
Sara Lee Corp. 3,090 61,584
UST, Inc. 660 22,453
Wm. Wrigley Jr. Co. 900 50,760
--------------
1,917,427
--------------
FOREST PRODUCTS -- 0.5%
Boise Cascade Corp. 230 6,452
Georgia-Pacific Corp. 1,010 26,543
International Paper Co. 1,910 75,158
Louisiana Pacific Corp.+ 420 7,988
MeadWestvaco Corp. 800 20,736
Plum Creek Timber Co., Inc. 730 19,235
Temple-Inland, Inc. 220 11,887
Weyerhaeuser Co. 870 52,400
--------------
220,399
--------------
HEALTH SERVICES -- 1.2%
Aetna, Inc. 610 35,020
Express Scripts, Inc+ 320 17,574
HCA, Inc. 1,990 76,117
Health Management Associates, Inc.,
Class A+ 960 21,264
Humana, Inc.+ 640 12,986
Manor Care, Inc. 360 11,981
McKesson, Inc. 1,160 35,113
Medco Health Solutions, Inc.+ 1,080 35,856
Quest Diagnostics, Inc.+ 420 28,413
Tenet Healthcare Corp.+ 1,850 25,530
UnitedHealth Group, Inc. 2,370 120,586
Wellpoint Health Networks, Inc.,Class A+ 590 52,451
--------------
472,891
--------------
HOME BUILDING -- 0.1%
Centex Corp. 250 24,375
KB Home 190 13,013
Pulte Homes, Inc. 250 21,628
--------------
59,016
--------------
HOUSEHOLD PRODUCTS -- 2.5%
Alberto-Culver Co., Class B 230 14,582
Avon Products, Inc. 940 63,882
</Table>
21
<Page>
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
- --------------------------------------------------------------------------------
COMMON STOCK -- (CONTINUED)
HOUSEHOLD PRODUCTS -- (CONTINUED)
Clorox Co. 860 $ 38,958
Colgate-Palmolive Co. 2,140 113,827
Gillette Co. 4,060 129,514
International Flavors & Fragrances, Inc. 380 12,578
Kimberly-Clark Corp. 2,020 106,676
Leggett & Platt, Inc. 770 16,085
Newell Rubbermaid, Inc. 1,090 24,852
Procter & Gamble Co. 5,160 507,176
Tupperware Corp. 230 3,462
--------------
1,031,592
--------------
INSURANCE -- 4.6%
ACE, Ltd. 1,110 39,960
AFLAC, Inc. 2,050 74,784
Allstate Corp. 2,800 110,600
Ambac Financial Group, Inc. 430 30,418
American International Group, Inc.# 10,390 632,024
Anthem, Inc.+ 550 37,637
Aon Corp. 1,250 27,375
Chubb Corp. 750 50,107
CIGNA Corp. 560 31,948
Cincinnati Financial Corp. 640 26,189
Hartford Financial Services Group, Inc. 1,120 61,488
Jefferson Pilot Corp. 570 27,212
John Hancock Financial Services, Inc. 1,150 40,652
Lincoln National Corp. 710 28,350
Loews Corp. 740 31,820
Marsh & McLennan Cos., Inc. 2,120 90,630
MBIA, Inc. 580 34,574
MetLife, Inc. 3,030 95,142
MGIC Investment Corp. 390 20,011
Principal Financial Group, Inc. 1,290 40,441
Progressive Corp. 870 64,206
Prudential Financial, Inc. 2,170 83,849
SAFECO Corp. 550 20,185
St. Paul Cos., Inc. 910 34,698
Torchmark Corp. 460 20,185
Travelers Property Casualty Corp.,
Class B 4,010 65,644
UnumProvident Corp. 1,180 19,317
XL Capital, Ltd., Class A 540 37,530
--------------
1,876,976
--------------
INTERNET CONTENT -- 0.7%
eBay, Inc.+ 2,560 $ 143,206
Sabre Holdings Corp. 570 12,489
Yahoo!, Inc.+ 2,590 113,183
--------------
268,878
--------------
INTERNET SOFTWARE -- 0.1%
Symantec Corp.+ 600 39,990
--------------
LEISURE & TOURISM -- 0.8%
Carnival Corp. 2,510 87,624
Delta Air Lines, Inc. 490 6,380
Harrah's Entertainment, Inc. 440 19,140
Hilton Hotels Corp. 1,500 23,760
International Game Technology 1,370 44,867
Marriott International, Inc., Class A 930 40,176
Southwest Airlines Co. 3,120 60,528
Starwood Hotels & Resorts
Worldwide, Inc. 800 26,984
--------------
309,459
--------------
MACHINERY -- 1.3%
Caterpillar, Inc. 1,370 100,394
Cooper Industries, Ltd., Class A 370 19,573
Crane Co. 240 6,744
Cummins, Inc. 170 8,058
Danaher Corp. 610 50,538
Deere & Co. 950 57,589
Dover Corp. 810 31,606
Eaton Corp. 300 30,072
Illinois Tool Works, Inc. 1,230 90,466
Ingersoll-Rand Co., Ltd., Class A 680 41,072
Navistar International Corp., Inc.+ 270 10,916
PACCAR, Inc. 460 36,322
Pall Corp. 490 11,466
Parker-Hannifin Corp. 470 23,956
Thermo Electron Corp.+ 650 14,287
--------------
533,059
--------------
MEDICAL PRODUCTS -- 3.6%
Bausch & Lomb, Inc. 210 10,114
Baxter International, Inc. 2,430 64,589
Becton, Dickinson and Co. 1,010 36,926
Biomet, Inc. 1,020 36,577
Boston Scientific Corp.+ 1,640 111,061
</Table>
22
<Page>
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
- --------------------------------------------------------------------------------
COMMON STOCK -- (CONTINUED)
MEDICAL PRODUCTS -- (CONTINUED)
C.R. Bard, Inc. 210 $ 16,811
Chiron Corp.+ 740 40,426
Genzyme Corp.+ 880 40,392
Guidant Corp. 1,230 62,742
IMS Health, Inc. 950 22,353
Johnson & Johnson 11,820 594,901
MedImmune, Inc.+ 1,000 26,660
Medtronic, Inc. 4,850 221,014
PerkinElmer, Inc. 510 9,185
St. Jude Medical, Inc.+ 680 39,549
Stryker Corp. 790 64,077
Zimmer Holdings, Inc.+ 900 57,429
--------------
1,454,806
--------------
METALS & MINING -- 0.6%
Alcoa, Inc. 3,370 106,391
Allegheny Technologies, Inc. 320 2,448
Freeport-McMoRan Copper & Gold, Inc.,
Class B 670 25,963
Newmont Mining Corp. 1,630 71,361
Nucor Corp. 310 16,997
Phelps Dodge Corp.+ 360 22,226
United States Steel Corp. 410 9,697
Worthington Industries, Inc. 340 4,957
--------------
260,040
--------------
PHARMACEUTICALS -- 7.5%
Abbott Laboratories 6,220 265,096
Allergan, Inc. 520 39,322
AmerisourceBergen Corp. 450 25,547
Amgen, Inc.+ 5,140 317,447
Biogen, Inc.+ 600 24,282
Bristol-Myers Squibb Co. 7,720 195,856
Cardinal Health, Inc. 1,780 105,625
Eli Lilly and Co. 4,470 297,791
Forest Laboratories, Inc.+ 1,450 72,515
King Pharmaceuticals, Inc.+ 960 12,864
Merck & Co., Inc. 8,920 394,710
Pfizer, Inc.@ 31,000 979,600
Schering-Plough Corp. 5,850 89,330
Watson Pharmaceuticals, Inc.+ 430 16,886
Wyeth 5,300 233,942
--------------
3,070,813
--------------
REAL ESTATE INVESTMENT TRUSTS -- 0.4%
Apartment Investment &
Management Co. 380 $ 15,542
Equity Office Properties Trust 1,590 44,536
Equity Residential 1,090 31,882
Prologis 710 20,973
Simon Property Group, Inc. 770 34,712
--------------
147,645
--------------
RESTAURANTS -- 0.6%
Darden Restaurants, Inc. 650 13,618
McDonald's Corp. 5,070 126,801
Starbucks Corp.+ 1,560 49,296
Wendys International, Inc. 450 16,672
Yum! Brands, Inc.+ 1,170 39,944
--------------
246,331
--------------
RETAIL STORES -- 7.6%
Albertson's, Inc. 1,460 29,623
American Greetings Corp., Class A+ 260 5,546
American Standard Cos., Inc.+ 290 27,753
Bed Bath & Beyond, Inc.+ 1,180 49,843
Best Buy Co., Inc.+ 1,280 74,637
Big Lots, Inc.+ 470 7,055
Black & Decker Corp. 310 14,821
Circuit City Stores-Circuit City Group 830 7,918
Costco Wholesale Corp.+ 1,820 64,373
CVS Corp. 1,570 55,233
Dillards, Inc., Class A 330 5,336
Dollar General Corp. 1,330 29,885
Family Dollar Stores, Inc. 690 30,091
Federated Department Stores, Inc.+ 740 35,187
Fortune Brands, Inc. 580 37,787
Gap, Inc. 3,560 67,925
Home Depot, Inc. 9,150 339,190
J.C. Penney Co., Inc. (Holding Co.) 1,080 25,542
Kohl's Corp.+ 1,350 75,694
Kroger Co.+ 2,990 52,295
Limited, Inc. 2,080 36,608
Lowe's Cos., Inc. 3,120 183,862
Masco Corp. 1,870 51,425
May Department Stores Co. 1,150 32,154
Maytag Corp. 310 7,874
Nordstrom, Inc. 540 16,465
Office Depot, Inc.+ 1,230 18,364
</Table>
23
<Page>
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
- --------------------------------------------------------------------------------
COMMON STOCK -- (CONTINUED)
RETAIL STORES -- (CONTINUED)
RadioShack Corp. 660 $ 19,793
Safeway, Inc.+ 1,760 37,136
Sears, Roebuck & Co. 1,130 59,472
Sherwin-Williams Co. 580 19,453
Stanley Works 340 11,336
Staples, Inc.+ 1,950 52,299
SUPERVALU, Inc. 530 13,367
Sysco Corp. 2,590 87,179
Target Corp. 3,630 144,256
Tiffany & Co. 580 27,521
TJX Cos, Inc. 2,030 42,610
Toys "R" Us, Inc.+ 850 11,050
Wal-Mart Stores, Inc.@ 17,400 1,025,730
Walgreen Co. 4,080 142,066
Whirlpool Corp. 270 19,027
Winn-Dixie Stores, Inc. 560 4,530
--------------
3,099,311
--------------
TELECOMMUNICATIONS -- 5.5%
ADC Telecommunications, Inc.+ 3,200 8,160
Alltel Corp. 1,240 58,615
Andrew Corp.+ 610 7,979
AT&T Wireless Services, Inc.+ 10,800 78,300
Avaya, Inc.+ 1,660 21,480
CenturyTel, Inc. 570 20,378
CIENA Corp.+ 1,880 12,051
Cisco Systems, Inc.+ 27,950 586,391
Citizens Communications Co.+ 1,130 14,069
Comcast Corp., Class A+ 8,960 303,923
Comverse Technology, Inc.+ 750 13,530
Corning, Inc.+ 5,300 58,194
JDS Uniphase Corp.+ 5,700 20,235
Nextel Communications, Inc., Class A+ 4,120 99,704
QUALCOMM, Inc. 3,160 150,100
Qwest Communications
International, Inc.+ 6,750 23,827
SBC Communications, Inc. 13,230 317,255
Sprint Corp. (FON Group) 3,600 57,600
Sprint Corp. (PCS Group )+ 4,120 17,922
Verizon Communications, Inc. 10,980 368,928
--------------
2,238,641
--------------
TRANSPORTATION -- 1.4%
Burlington Northern Santa Fe Corp. 1,480 $ 42,831
CSX Corp. 850 27,047
FedEx Corp. 1,190 90,154
Norfolk Southern Corp. 1,550 31,233
Ryder System, Inc. 250 7,500
Union Pacific Corp. 1,010 63,226
United Parcel Service, Inc., Class B 4,480 324,890
--------------
586,881
--------------
UTILITIES -- 3.0%
AES Corp.+ 2,470 21,612
Allegheny Energy, Inc.+ 500 5,290
Ameren Corp. 640 28,576
American Electric Power Co., Inc. 1,570 44,258
AT&T Corp. 3,140 58,373
BellSouth Corp. 7,360 193,642
Calpine Corp.+ 1,530 7,053
CenterPoint Energy, Inc. 1,220 11,968
Cinergy Corp. 710 25,780
CMS Energy Corp.+ 570 4,628
Consolidated Edison, Inc. 900 36,423
Constellation Energy Group, Inc. 670 24,368
Dominion Resources, Inc. 1,290 79,464
DTE Energy Co. 670 24,710
Duke Energy Corp. 3,600 65,340
Edison International+ 1,300 25,623
Entergy Corp. 910 49,049
Exelon Corp. 1,300 82,485
FirstEnergy Corp. 1,300 44,707
FPL Group, Inc. 730 46,530
PG&E Corp.+ 1,640 40,098
innacle West Capital Corp. 360 13,162
PPL Corp. 700 27,944
Progress Energy, Inc. 970 41,807
Public Service Enterprise Group, Inc. 900 36,783
Southern Co. 2,900 86,420
TECO Energy, Inc. 750 9,847
TXU Corp. 1,280 29,210
Williams Cos., Inc. 2,060 21,012
Xcel Energy, Inc. 1,590 26,076
--------------
1,212,238
--------------
TOTAL INVESTMENT SECURITIES
(cost $44,036,221) $ 38,711,278
--------------
</Table>
24
<Page>
<Table>
<Caption>
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) (NOTE 3)
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 0.3%
United States Treasury Bills 0.87%
due 11/13/03@ $ 30 $ 29,991
United States Treasury Bills 0.84%
due 11/20/03@ 60 59,973
United States Treasury Bills 0.86%
due 12/04/03@ 10 9,992
United States Treasury Bills 0.82%
due 12/04/03@ 10 9,993
United States Treasury Bills 0.90%
due 12/11/03@ 20 19,980
--------------
TOTAL SHORT-TERM INVESTMENTS
(cost $129,929) 129,929
--------------
REPURCHASE AGREEMENT -- 5.1%
Agreement with State Street Bank &
Trust Co., bearing interest at 0.92%,
dated 10/31/03, to be repurchased
11/03/03 in the amount of
$2,066,158 and collateralized by
$2,125,000 of Federal Home Loan
Bank Notes, bearing interest at 1.63%, due
06/17/05 and having an approximate
value of $2,129,620
(cost $2,066,000)@ $ 2,066 $ 2,066,000
--------------
TOTAL INVESTMENTS --
(cost $46,232,150*) 100.0% 40,907,207
Other assets less liabilities 0.0 2,892
---------- --------------
NET ASSETS -- 100.0% $ 40,910,099
========== ==============
</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.
OPEN FUTURES CONTRACTS
<Table>
<Caption>
NUMBER OF VALUE AT VALUE AS OF UNREALIZED
CONTRACT DESCRIPTION EXPIRATION DATE TRADE DATE OCTOBER 31, 2003 APPRECIATION
- -------------------------------------------------------------------------------------------------------------------
42 Long S&P 500 Mini Index December 2003 $ 2,147,475 $ 2,203,950 $ 56,475
=========
</Table>
See Notes to Financial Statements
25
<Page>
SUNAMERICA SCIENCE & TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2003
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
- --------------------------------------------------------------------------------
COMMON STOCK -- 98.9%
BROADCASTING & MEDIA -- 4.0%
Clear Channel Communications, Inc. 4,100 $ 167,362
Time Warner, Inc.+ 12,900 197,241
Univision Communications, Inc.,
Class A+ 1,000 33,950
Viacom, Inc., Class B 4,000 159,480
--------------
558,033
--------------
BUSINESS SERVICES -- 2.4%
Accenture, Ltd., Class A+ 6,600 154,440
CDW Corp. 700 42,035
Paychex, Inc. 3,500 136,220
--------------
332,695
--------------
CHEMICALS -- 0.2%
Cabot Microelectronics Corp.+ 500 28,500
--------------
COMMUNICATION EQUIPMENT -- 1.2%
Intersil Corp., Class A 2,900 74,791
Marvell Technology Group, Ltd.+ 600 26,322
Nortel Networks Corp.+ 15,800 70,310
--------------
171,423
--------------
COMPUTER SOFTWARE -- 33.8%
Adobe Systems, Inc. 6,600 289,344
BMC Software, Inc.+ 5,400 93,852
Cadence Design Systems, Inc.+ 9,800 150,822
Certegy, Inc. 4,000 134,640
DST Systems, Inc.+ 2,100 79,422
First Data Corp. 7,850 280,245
Fiserv, Inc.+ 7,200 254,304
Informatica Corp.+ 6,800 74,120
Intuit, Inc.+ 6,600 329,868
Mercury Interactive Corp.+ 8,200 380,808
Microsoft Corp. 46,800 1,223,820
Oracle Corp.+ 23,700 283,452
Red Hat, Inc.+ 4,600 69,184
SAP AG 800 116,244
SAP AG-Sponsored ADR 1,700 62,118
Siebel Systems, Inc.+ 16,600 208,994
SunGard Data Systems, Inc.+ 3,600 100,980
Synopsys, Inc.+ 4,300 136,396
VERITAS Software Corp.+ 12,200 441,030
--------------
4,709,643
--------------
COMPUTERS & BUSINESS EQUIPMENT -- 10.9%
Dell, Inc.+ 17,400 $ 628,488
Hewlett-Packard Co. 11,400 254,334
Intel Corp. 5,000 165,250
International Business Machines Corp. 2,400 214,752
Lexmark International Group, Inc.+ 2,100 154,581
Network Appliance, Inc.+ 2,100 51,828
Seagate Technology 2,200 50,556
--------------
1,519,789
--------------
ELECTRONICS -- 24.3%
Agere Systems, Inc.+ 12,000 41,760
Altera Corp.+ 3,200 64,736
Analog Devices, Inc.+ 9,200 407,836
Applied Materials, Inc.+ 17,400 406,638
ASML Holding NV+ 2,700 47,385
Flextronics International, Ltd.+ 5,500 77,000
KLA-Tencor Corp.+ 3,600 206,388
Linear Technology Corp. 2,300 98,003
Maxim Integrated Products, Inc.+ 9,400 467,274
Microchip Technology, Inc. 6,800 222,428
Novellus Systems, Inc.+ 7,200 297,288
QLogic Corp.+ 3,750 210,188
Samsung Electronics Co. Ltd. 400 158,851
Sanmina-SCI Corp.+ 4,300 45,365
Taiwan Semiconductor
Manufacturing Co., Ltd. ADR+ 12,636 139,754
Texas Instruments, Inc. 10,700 309,444
Xilinx, Inc.+ 5,700 180,690
--------------
3,381,028
--------------
ENTERTAINMENT PRODUCTS -- 0.6%
Electronic Arts, Inc.+ 800 79,232
--------------
INTERNET CONTENT -- 1.9%
eBay, Inc.+ 2,000 111,880
Yahoo!, Inc.+ 3,500 152,950
--------------
264,830
--------------
INTERNET SOFTWARE -- 4.4%
InterActiveCorp+ 3,700 135,827
Networks Associates, Inc.+ 8,900 123,977
Symantec Corp.+ 2,000 133,300
VeriSign, Inc.+ 13,450 213,451
--------------
606,555
--------------
</Table>
26
<Page>
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
- --------------------------------------------------------------------------------
COMMON STOCK -- (CONTINUED)
LEISURE & TOURISM -- 0.4%
International Game Technology 1,700 $ 55,675
--------------
MACHINERY -- 0.1%
Cognex Corp. 700 18,795
--------------
MEDICAL PRODUCTS -- 1.2%
Johnson & Johnson 2,400 120,792
MedImmune, Inc.+ 1,900 50,654
--------------
171,446
--------------
PHARMACEUTICALS -- 3.2%
Bristol-Myers Squibb Co. 2,100 53,277
Cephalon, Inc.+ 1,400 65,744
Eli Lilly and Co. 650 43,303
Forest Laboratories, Inc.+ 1,700 85,017
Genentech, Inc.+ 400 32,788
Gilead Sciences, Inc.+ 600 32,748
IDEC Pharmaceuticals Corp.+ 1,500 52,695
Pfizer, Inc. 1,500 47,400
Wyeth 600 26,484
--------------
439,456
--------------
TELECOMMUNICATIONS -- 10.3%
CIENA Corp.+ 5,800 $ 37,178
Cisco Systems, Inc.+ 31,500 660,870
Comcast Corp., Class A 3,200 104,384
JDS Uniphase Corp.+ 7,800 27,690
Nokia Corp. ADR 13,900 236,161
QUALCOMM, Inc. 5,000 237,500
Vodafone Group, PLC ADR 6,000 126,900
--------------
1,430,683
--------------
TOTAL INVESTMENT SECURITIES
(cost $11,722,017) 13,767,783
--------------
SHORT-TERM INVESTMENTS -- 1.6%
REGISTERED INVESTMENT FUND -- 1.6%
T Rowe Price Reserve Investment Fund
(cost: $226,534) 226,534 226,534
--------------
TOTAL INVESTMENTS --
(cost $11,948,551*) 100.5% 13,994,317
Liabilities in excess of other assets (0.5) (76,295)
------ --------------
NET ASSETS -- 100.0% $ 13,918,022
====== ==============
</Table>
- ----------
* See Note 7
+ Non-income producing securities
ADR American Depository Receipt
See Notes to Financial Statements
27
<Page>
SUNAMERICA AGGRESSIVE GROWTH LIFESTAGE FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2003
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
- --------------------------------------------------------------------------------
AFFILIATED INVESTMENT COMPANIES# -- 100.0%
INTERNATIONAL EQUITY SECURITIES -- 30.2%
SunAmerica International Equity Fund
Class I+
(Cost $6,430,946) 792,621 $ 7,403,076
--------------
DOMESTIC EQUITY SECURITIES -- 63.9%
SunAmerica Blue Chip Growth Fund
Class I+ 363,523 5,143,857
SunAmerica Focused Multi-Cap Value
Portfolio Class I+ 338,934 5,805,932
SunAmerica Growth & Income Fund
Class I+ 243,073 2,656,786
SunAmerica New Century Fund
Class I+ 140,476 2,043,923
--------------
TOTAL DOMESTIC EQUITY SECURITIES
(cost $14,460,533) 15,650,498
--------------
FIXED INCOME SECURITIES -- 5.9%
SunAmerica Core Bond Fund Class I
(cost $1,451,468) 141,898 1,458,709
--------------
TOTAL INVESTMENTS --
(cost $22,342,947*) 100.0% 24,512,283
Liabilities in excess of other assets (0.0) (9,243)
------ --------------
NET ASSETS -- 100.0% $ 24,503,040
====== ==============
</Table>
- ----------
* See Note 7
+ Non-income producing securities
# See Note 6
See Notes to Financial Statements
28
<Page>
SUNAMERICA MODERATE GROWTH LIFESTAGE FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2003
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
- --------------------------------------------------------------------------------
AFFILIATED INVESTMENT COMPANIES# -- 99.9%
INTERNATIONAL EQUITY SECURITIES -- 16.2%
SunAmerica International Equity Fund
Class I+
(cost $5,140,196) 650,665 $ 6,077,211
--------------
DOMESTIC EQUITY SECURITIES -- 60.0%
SunAmerica Blue Chip Growth Fund
Class I+ 469,110 6,637,902
SunAmerica Focused Multi-Cap Value
Portfolio Class I+ 449,360 7,697,530
SunAmerica Growth & Income Fund
Class I+ 527,476 5,765,315
SunAmerica New Century Fund Class I+ 167,203 2,432,805
--------------
TOTAL DOMESTIC EQUITY SECURITIES
(cost $20,080,464) 22,533,552
--------------
FIXED INCOME SECURITIES -- 23.7%
SunAmerica Core Bond Fund Class I
(cost $8,855,009) 866,877 8,911,499
--------------
TOTAL INVESTMENTS --
(cost $34,075,669*) 99.9% 37,522,262
Other assets less liabilities 0.1 52,041
------ --------------
NET ASSETS -- 100.0% $ 37,574,303
====== ==============
</Table>
- ----------
* See Note 7
+ Non-income producing securities
# See Note 6
See Notes to Financial Statements
29
<Page>
SUNAMERICA CONSERVATIVE GROWTH LIFESTAGE FUND
PORTFOLIO OF INVESTMENTS -- OCTOBER 31, 2003
<Table>
<Caption>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 3)
- --------------------------------------------------------------------------------
AFFILIATED INVESTMENT COMPANIES# -- 99.6%
INTERNATIONAL EQUITY SECURITIES -- 8.8%
SunAmerica International Equity Fund
Class I+
(cost $1,578,806) 207,117 $ 1,934,475
--------------
DOMESTIC EQUITY SECURITIES -- 47.1%
SunAmerica Blue Chip Growth Fund
Class I+ 238,007 3,367,795
SunAmerica Focused Multi-Cap Value
Portfolio Class I+ 201,054 3,444,061
SunAmerica Growth & Income Fund
Class I+ 273,186 2,985,920
SunAmerica New Century Fund
Class I+ 33,309 484,652
--------------
TOTAL DOMESTIC EQUITY SECURITIES
(cost $8,731,687) 10,282,428
--------------
FIXED INCOME SECURITIES -- 43.7%
SunAmerica Core Bond Fund Class I
(cost $9,460,231) 927,600 9,535,724
--------------
TOTAL INVESTMENTS --
(cost $19,770,724*) 99.6% 21,752,627
Other assets less liabilities 0.4 96,888
------ --------------
NET ASSETS -- 100.0% $ 21,849,515
====== ==============
</Table>
- ----------
* See Note 7
+ Non-income producing securities
# See Note 6
See Notes to Financial Statements
30
<Page>
SUNAMERICA STRATEGIC INVESTMENT SERIES, INC.
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 2003
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") (formerly
Biotech/Health 30 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 while minimizing the
impact of capital gains through active trading of equity securities of
large and medium-sized U.S. 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 equity 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.
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 AIG 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 AIG SunAmerica Mutual
Funds investing in equity and fixed income securities, with an 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.
31
<Page>
CONSERVATIVE GROWTH LIFESTAGE FUND seeks current income and growth of
capital, with reduced volatility by allocating assets among a combination
of AIG 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 AIG 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 directors 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.
32
<Page>
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. 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 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
33
<Page>
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 102% of 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 October 31, 2003, Biotech/Health Fund had a 6.4% undivided
interest which represented $6,337,000 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, 0.94% dated
10/31/03 in the principal amount of $99,505,000, repurchase price
$99,512,745 due 11/03/03, collateralized by the following:
<Table>
<Caption>
INTEREST MATURITY PRINCIPAL MARKET
TYPE OF COLLATERAL RATE DATE AMOUNT VALUE
------------------ -------- -------- ------------- -------------
U.S. Treasury Bond 6.25% 8/15/23 $ 79,505,000 $ 81,101,425
U.S. Treasury Bill 0.94 1/29/04 20,455,000 20,403,862
</Table>
In addition, as of October, 31, 2003, Biotech/Health Fund has a 4.7%
undivided interest which represented $7,000,000 in principal amount in a
joint repurchase agreement with UBS Warburg, LLC. As of such date, the
repurchase agreement in the joint account and the collateral thereof are as
follows:
UBS Warburg, LLC Repurchase Agreement, 0.99% dated 10/31/03, in
principal amount of $150,000,000, repurchase price $150,012,375 due
11/03/03, collateralized by the following:
<Table>
<Caption>
INTEREST MATURITY PRINCIPAL MARKET
TYPE OF COLLATERAL RATE DATE AMOUNT VALUE
------------------ -------- -------- ------------- -------------
U.S. Treasury Notes-TIPS 1.87% 7/15/13 $ 150,000,000 $ 153,576,408
</Table>
SECURITIES TRANSACTIONS, INVESTMENT INCOME, EXPENSES, DIVIDENDS AND
DISTRIBUTIONS TO SHAREHOLDERS: Security 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 AIG SunAmerica Mutual Funds
including funds investing in fixed income securities. For financial
statement purposes, funds amortize all premiums and accrete all discounts
on fixed income securities. Funds
34
<Page>
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.
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 in 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.
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
35
<Page>
difference between the amounts of interest, dividends and foreign
withholding taxes recorded on a Fund's books and the U.S. dollar equivalent
amounts actually received or paid and changes in the unrealized foreign
exchange gains and losses relating to 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 future settlement of a 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
36
<Page>
Directors. In connection therewith, SAAMCo furnishes the Funds with office
facilities, maintains certain of the Funds' 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
$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>
37
<Page>
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 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 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 Science & Technology Fund. Effective December 1, 2002 SAAMCo
voluntarily 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 of such waivers or reimbursements, provided
that the Funds are able to effect such payment to SAAMCo and remain in
compliance with the foregoing expense limitations.
38
<Page>
For the year ended October 31, 2003, expenses were reimbursed to the
Funds as follows:
<Table>
Biotech/Health Fund -- Class A $ 37,299
Biotech/Health Fund -- Class B 42,140
Biotech/Health Fund -- Class II 37,737
Tax Managed Equity Fund -- Class A 39,521
Tax Managed Equity Fund -- Class B 53,982
Tax Managed Equity Fund -- Class II 53,380
Stock Index Fund -- Class A 62,622
Stock Index Fund -- Class B 135,295
Stock Index Fund -- Class II 24,638
Science & Technology Fund -- Class A 47,857
Science & Technology Fund -- Class B 129,821
Science & Technology Fund -- Class II 22,105
Science & Technology Fund -- Class I 10,902
Aggressive Growth Lifestage Fund A 20,770
Aggressive Growth Lifestage Fund B 49,281
Aggressive Growth Lifestage Fund II 12,818
Aggressive Growth Lifestage Fund I 23,249
Moderate Growth Lifestage Fund A 13,479
Moderate Growth Lifestage Fund B 23,292
Moderate Growth Lifestage Fund II 12,678
Moderate Growth Lifestage Fund I 12,126
Conservative Growth Lifestage Fund A 17,517
Conservative Growth Lifestage Fund B 23,860
Conservative Growth Lifestage Fund II 13,624
Conservative Growth Lifestage Fund I 17,527
</Table>
For the year ended October 31, 2003, none of the previously reimbursed
expenses have been repaid to the Adviser by the Funds.
At October 31, 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 156,909
Science & Technology Fund 169,773
Aggressive Growth LifeStage Fund 40,127
Moderate Growth LifeStage Fund 12,491
Conservative Growth LifeStage Fund 18,119
</Table>
39
<Page>
<Table>
<Caption>
CLASS SPECIFIC
EXPENSES
REIMBURSED
--------------
Biotech/Health Fund Class A $ 82,959
Biotech/Health Fund Class B 85,107
Biotech/Health Fund Class II 75,714
Tax Managed Equity Fund Class A 91,348
Tax Managed Equity Fund Class B 127,188
Tax Managed Equity Fund Class II 129,505
Stock Index Fund Class A 71,521
Stock Index Fund Class B 168,929
Stock Index Fund Class II 35,313
Science & Technology Fund Class A 44,829
Science & Technology Fund Class B 115,037
Science & Technology Fund Class II 26,159
Science & Technology Fund Class I 18,156
Aggressive Growth LifeStage Fund Class A 14,723
Aggressive Growth LifeStage Fund Class B 29,064
Aggressive Growth LifeStage Fund Class II 12,152
Aggressive Growth LifeStage Fund Class I 10,051
Moderate Growth LifeStage Fund Class A 11,715
Moderate Growth LifeStage Fund Class B 18,323
Moderate Growth LifeStage Fund Class II 12,183
Moderate Growth LifeStage Fund Class I 6,923
Conservative Growth LifeStage Fund Class A 12,770
Conservative Growth LifeStage Fund Class B 17,309
Conservative Growth LifeStage Fund Class II 12,163
Conservative Growth LifeStage Fund Class I 11,547
</Table>
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
40
<Page>
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 year ended October 31,
2003, SACS received fees (see Statement of Operations) based upon the
aforementioned rates.
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 paid 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 Class A, Class B and Class II shares. SACS has advised the Funds
that for the year ended October 31, 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 CONTINGENT
SALES AFFILIATED NON-AFFILIATED DEFERRED DEFERRED
CHARGES BROKER-DEALERS BROKER-DEALERS SALES CHARGES SALES CHARGES
---------- -------------- -------------- -------------- -------------
Biotech/Health Fund $ 52,737 $ 21,993 $ 23,883 $ 162 $ 64,361
Tax Managed Equity Fund 23,374 12,569 6,239 -- 109,910
Stock Index Fund 63,494 41,329 13,934 -- 64,667
Science & Technology Fund 22,069 9,095 9,559 -- 21,520
Aggressive Growth LifeStage Fund 11,354 9,028 862 -- 21,736
Moderate Growth LifeStage Fund 40,180 29,885 5,040 -- 15,215
Conservative Growth LifeStage Fund 30,464 18,775 6,825 -- 19,071
</Table>
41
<Page>
<Table>
<Caption>
CLASS II
--------------------------------------------------------
CONTINGENT
SALES AFFILIATED NON-AFFILIATED DEFERRED
CHARGES BROKER-DEALERS BROKER-DEALERS SALES CHARGES
--------- -------------- -------------- -------------
Biotech/Health Fund $ 10,740 $ 5,174 $ 5,566 $ 3,195
Tax Managed Equity Fund 10,667 2,482 8,185 5,136
Stock Index Fund 6,671 2,638 4,033 1,200
Science & Technology Fund 1,911 1,177 734 222
Aggressive Growth LifeStage Fund 2,203 1,186 1,017 196
Moderate Growth LifeStage Fund 4,704 2,043 2,661 621
Conservative Growth LifeStage Fund 3,365 815 2,550 808
</Table>
The LifeStage Funds do not invest in underlying SunAmerica Mutual
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 Mutual Fund's net assets.
At October 31, 2003, each LifeStage Fund held less than 10% of the
outstanding shares of any underlying SunAmerica Mutual Fund. In addition,
the LifeStage Funds, in the aggregate, held less than 16% of the
outstanding shares of any underlying SunAmerica Mutual 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 assets, is approved annually by the Directors. For the year ended
October 31, 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 OCTOBER 31, 2003
------------------------------------------ ----------------------------------------
CLASS A CLASS B CLASS II CLASS I CLASS A CLASS B CLASS II CLASS I
--------- --------- --------- ------- --------- -------- --------- --------
Biotech/Health Fund $ 36,248 $ 35,726 $ 25,146 $ -- $ 3,567 $ 3,395 $ 2,398 $ --
Tax Managed Equity Fund 33,043 50,687 50,824 -- 2,754 4,227 4,251 --
Stock Index Fund 21,368 44,854 6,237 -- 2,551 4,323 625 --
Science & Technology Fund 5,651 16,680 1,564 375 613 1,708 167 38
</Table>
42
<Page>
As of October 31, 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 14%
Science & Technology Fund
Class A 5
Class I 100
Aggressive Growth LifeStage Fund
Class A 34
Class B 9
Class I 30
Moderate Growth LifeStage Fund
Class A 23
Class B 8
Class I 17
Conservative Growth LifeStage Fund
Class A 21
Class B 16
Class I 50
</Table>
In addition, SAAMCo owns 6% of the Class A outstanding shares of the
Biotech/Health Fund.
43
<Page>
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 year ended October 31, 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) $ 76,922,282 $ 7,645,579 $ 6,014,456 $ 6,064,606 $ 6,072,344 $ 13,735,516 $ 9,830,391
Sales (excluding
U.S. government
securities) 91,438,016 23,964,812 359,279 4,662,373 5,099,599 9,324,453 9,031,471
Purchases of
U.S. government
securities) -- -- -- -- -- -- --
Sales of U.S. government
securities -- -- -- -- -- -- --
</Table>
NOTE 6. TRANSACTIONS WITH AFFILIATES
As disclosed in the investment portfolios, certain Funds own
securities issued by AIG or an affiliate thereof. For the year ended
October 31, 2003, the Funds recorded realized gain (losses) and income on
security transactions of AIG and subsidiaries of AIG as follows:
<Table>
<Caption>
REALIZED
SECURITY GAIN (LOSS) INCOME
----------------------- ------------- ----------
Tax Managed Fund AIG $ -- $ 2,385
Stock Index Fund AIG -- 1,942
Various SunAmerica
Aggressive Growth LifeStage Fund Mutual Funds* (1,018,539) 43,975
Various SunAmerica
Moderate Growth LifeStage Fund Mutual Funds* (1,312,954) 255,732
Various SunAmerica
Conservative Growth LifeStage Fund Mutual Funds* (743,235) 287,035
</Table>
- ----------
* See Portfolio of Investments for details.
The following Funds incurred brokerage commissions with affiliated
brokers which are affiliates of a sub-adviser:
<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
----------- ----------- ----------- ---------- ------------ --------- ------------
J.P. Morgan Securities, Inc. $ 25,062 -- -- $ 421 -- -- --
</Table>
44
<Page>
NOTE 7. FEDERAL INCOME TAXES
The following details the tax basis distributions as well as the
components of distributable earnings. As of October 31, 2003, 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 and Fund mergers.
<Table>
<Caption>
DISTRIBUTABLE EARNINGS TAX DISTRIBUTIONS
----------------------------------------------- ----------------------
FOR THE YEAR ENDED OCTOBER 31, 2003
-----------------------------------------------------------------------
LONG-TERM GAINS/ UNREALIZED LONG-TERM
ORDINARY CAPITAL LOSS APPRECIATION ORDINARY CAPITAL
INCOME CARRYOVER (DEPRECIATION) INCOME GAINS
---------- ----------------- -------------- --------- ----------
Biotech/Health Fund $ -- $ (36,097,343) $ 7,134,660 $ -- $ --
Tax Managed Equity Fund -- (30,923,844) (5,525,690) -- --
Stock Index Fund 162,334 (2,350,475) (5,324,834) 107,995 --
Science & Technology Fund -- (19,713,302) 666,302 -- --
Aggressive Growth LifeStage Fund -- (7,821,143) (838,628) 186,991 --
Moderate Growth LifeStage Fund 12,488 (4,513,456) (546,396) 367,985 --
Conservative Growth LifeStage Fund 108,161 (3,206,189) 277,237 394,994 --
<Caption>
TAX DISTRIBUTIONS
----------------------
FOR THE YEAR ENDED
OCTOBER 31, 2002
----------------------
LONG-TERM
ORDINARY CAPITAL
INCOME GAINS
--------- ----------
Biotech/Health Fund $ -- $ --
Tax Managed Equity Fund -- --
Stock Index Fund 54,993 --
Science & Technology Fund -- --
Aggressive Growth LifeStage Fund 109,998 --
Moderate Growth LifeStage Fund 262,993 --
Conservative Growth LifeStage Fund 340,001 --
</Table>
As of October 31, 2003, the following Funds have capital loss
carryforwards which will be available to the extent provided in regulations
and which will expire between 2007-2011. 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 CAPITAL LOSS
CARRYFORWARDS CARRYFORWARDS
AMOUNT UTILIZED
------------- -------------
Biotech/Health Fund $ 36,097,343 $ --
Tax Managed Equity Fund 30,923,844 --
Stock Index Fund 2,350,475 151,901
Science & Technology Fund 19,713,302 --
Aggressive Growth LifeStage Fund 7,821,143 --
Moderate Growth LifeStage Fund 4,513,456 --
Conservative Growth LifeStage Fund 3,206,189 --
</Table>
45
<Page>
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 October 31, 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) $ 41,474,536 $ 66,262,208 $ 46,232,041 $ 13,328,017 $ 25,350,911 $ 38,068,658 $ 21,475,390
============= ============== ============= ============= ============= ============= =============
Appreciation $ 7,525,422 $ 5,756,287 $ 3,383,436 $ 2,565,569 $ 2,169,336 $ 3,446,593 $ 1,981,903
Depreciation (310,180) (11,281,977) (8,708,270) (1,899,269) (3,007,964) (3,992,989) (1,704,666)
------------- -------------- ------------- ------------- ------------- ------------- -------------
Net unrealized
appreciation
(depreciaiton) $ 7,215,242 $ (5,525,690) $ (5,324,834) $ 666,300 $ (838,628) $ (546,396) $ 277,237
============= ============== ============= ============= ============= ============= =============
</Table>
For the year ended October 31, 2003, the following reclassifications
arising from book/tax differences were primarily the result of
reclassifications due to net operating losses.
<Table>
<Caption>
ACCUMULATED ACCUMULATED
UNDISTRIBUTED UNDISTRIBUTED
NET REALIZED NET INVESTMENT PAID IN
GAIN (LOSS) INCOME (LOSS) CAPITAL
------------- -------------- -------------
Biotech/Health Fund $ -- $ 760,261 $ (760,261)
Tax Managed Equity Fund -- 85,812 (85,812)
Stock Index Fund 1,401 (814) (587)
Science & Technology Fund 1,322 175,722 (177,044)
Aggressive Growth LifeStage Fund -- 196,177 (196,177)
Moderate Growth LifeStage Fund -- -- --
Conservative Growth LifeStage Fund -- -- --
</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 YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002 OCTOBER 31, 2003 OCTOBER 31, 2002
---------------------- ------------------------- ------------------------ -------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Shares sold 456,700* $ 3,940,808* 646,970 $ 6,336,427 504,910 $ 4,524,190 572,460 $ 5,712,976
Reinvested dividends -- -- -- -- -- -- -- --
Shares redeemed (639,968) (5,253,782) (1,062,148) (9,526,931) (746,314)* (6,389,961)* (810,536) (7,339,560)
-------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Net increase (decrease (183,268) $ (1,312,974) (415,178) $ (3,190,504) (241,404) $ (1,865,771) (238,076) $ (1,626,584)
======== ============ ========== ============ ======== ============ ========== ============
<Caption>
BIOTECH/HEALTH FUND
-------------------------------------------------
CLASS II
-------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002
---------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
-------- ------------ ---------- ------------
Shares sold 211,434 $ 1,825,147 339,378 $ 3,284,100
Reinvested dividends -- -- -- --
Shares redeemed (551,787) (4,263,083) (838,133) (7,689,471)
-------- ------------ ---------- ------------
Net increase (decrease) (340,353) $ (2,437,936) (498,755) $ (4,405,371)
======== ============ ========== ============
</Table>
- ----------
* Includes automatic conversion of 21,973 shares of Class B shares in the
amount of $178,278 to 21,668 shares of Class A shares in the amount of
$178,278.
46
<Page>
<Table>
<Caption>
TAX MANAGED EQUITY FUND
--------------------------------------------------------------------------------------------------------
CLASS A CLASS B
--------------------------------------------------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002 OCTOBER 31, 2003 OCTOBER 31, 2002
---------------------- ------------------------- ------------------------ -------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Shares sold 70,444* $ 672,205* 255,825 $ 2,796,384 74,626 $ 688,358 341,922 $ 3,766,020
Reinvested dividends -- -- -- -- -- -- -- --
Shares redeemed (494,385) (4,600,304) (1,016,375) (10,481,262) (768,187)* (6,967,422)* (1,167,526) (11,638,648)
-------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Net increase (decrease) (423,941) $ (3,928,099) (760,550) $ (7,684,878) (693,561) $ (6,279,064) (825,604) $ (7,872,628)
======== ============ ========== ============ ======== ============ ========== ============
</Table>
<Table>
<Caption>
TAX MANAGED EQUITY FUND
-------------------------------------------------
CLASS II
-------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002
---------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
-------- ------------ ---------- ------------
Shares sold 168,595 $ 1,555,227 319,412 $ 3,458,869
Reinvested dividends -- -- -- --
Shares redeemed (910,268) (8,270,207) (1,331,221) (13,791,589)
-------- ------------ ---------- ------------
Net increase (decrease) (741,673) $ (6,714,980) (1,011,809) $(10,332,720)
======== ============ ========== ============
</Table>
<Table>
<Caption>
STOCK INDEX FUND
--------------------------------------------------------------------------------------------------------
CLASS A CLASS B
--------------------------------------------------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002 OCTOBER 31, 2003 OCTOBER 31, 2002
---------------------- ------------------------ ------------------------ -------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- ----------- ---------- ------------ -------- ------------ ---------- ------------
Shares sold 754,900** $ 6,353,597** 260,515 $ 2,428,245 600,336 $ 4,988,580 632,857 $ 5,906,314
Reinvested dividends. 7,985 63,642 5,044 49,982 4,165 33,152 431 4,268
Shares redeemed (203,235) (1,664,744) (155,624) (1,356,697) (479,600)** (3,946,924)** (568,750) (5,278,347)
-------- ----------- ---------- ------------ -------- ------------ ---------- ------------
Net increase (decrease) 559,650 $ 4,752,495 109,935 $ 1,121,530 124,901 $ 1,074,808 64,538 $ 632,235
======== =========== ========== ============ ======== ============ ========== ============
</Table>
<Table>
<Caption>
STOCK INDEX FUND
-------------------------------------------------
CLASS II+
-------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002
---------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- ---------- ------------
Shares sold 135,321 $ 1,146,041 292,752 $ 2,643,459
Reinvested dividends 624 4,942 29 282
Shares redeemed (137,165) (1,096,609) (71,600) (632,305)
-------- ----------- ---------- ------------
Net increase (decrease) (1,220) $ 54,374 221,181 $ 2,011,436
======== =========== ========== ============
</Table>
- ----------
+ See Note 2
* Includes automatic conversion of 5,175 shares of Class B shares in the amount
of $49,538 to 5,051 shares of Class A shares in the amount of $49,538.
** Includes automatic conversion of 1,482 shares of Class B shares in the amount
of $11,323 to 1,473 shares of Class A shares in the amount of $11,323.
47
<Page>
<Table>
<Caption>
SCIENCE & TECHNOLOGY FUND
------------------------------------------------------------------------------------------------------
CLASS A CLASS B
------------------------------------------------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002 OCTOBER 31, 2003 OCTOBER 31, 2002
--------------------- ------------------------- ------------------------ -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- ----------- ---------- ------------ -------- ------------ -------- ------------
Shares sold 420,152* $ 1,077,871* 244,541 $ 726,756 656,744 $ 1,646,747 559,269 $ 1,607,887
Reinvested dividends -- -- -- -- -- -- -- --
Shares redeemed (284,531) (700,590) (134,448) (384,113) (600,670)* (1,494,299)* (541,541) (1,479,868)
-------- ----------- ---------- ------------ -------- ------------ -------- ------------
Net increase (decrease) 135,621 $ 377,281 110,093 $ 342,643 56,074 $ 152,448 17,728 $ 128,019
======== =========== ========== ============ ======== ============ ======== ============
<Caption>
SCIENCE & TECHNOLOGY FUND
------------------------------------------------- --------------------------------------------------
CLASS II+ CLASS I
------------------------------------------------- --------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002 OCTOBER 31, 2003 OCTOBER 31, 2002
--------------------- ------------------------- ------------------------ -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- ----------- ---------- ------------ -------- ------------ -------- ------------
Shares sold 166,548 $ 416,513 63,024 $ 193,961 -- $ -- 33,747 $ 116,738
Reinvested dividends -- -- -- -- -- -- -- --
Shares redeemed (122,433) (298,834) (94,353) (248,758) -- -- (224,586) (790,279)
-------- ----------- ---------- ------------ -------- ------------ -------- ------------
Net increase (decrease) 44,115 $ 117,679 (31,329) $ (54,797) -- $ -- (190,839) $ (673,541)
======== =========== ========== ============ ======== ============ ======== ============
<Caption>
AGGRESSIVE GROWTH LIFESTAGE FUND
------------------------------------------------- --------------------------------------------------
CLASS A CLASS B
------------------------------------------------- --------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002 OCTOBER 31, 2003 OCTOBER 31, 2002
--------------------- ------------------------- ------------------------ -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- ----------- ---------- ------------ -------- ------------ -------- ------------
Shares sold 58,064**$ 393,023** 93,914 $ 714,141 173,395 $ 1,169,909 193,588 $ 1,476,309
Reinvested dividends 6,081 38,374 4,135 34,526 9,328 59,139 2,073 17,106
Shares redeemed (35,804) (241,650) (90,472) (703,615) (209,485)** (1,423,777)**(272,106) (2,014,498)
-------- ----------- ---------- ------------ -------- ------------ -------- ------------
Net increase (decrease) 28,341 $ 189,747 7,577 $ 45,052 (26,762) $ (194,729) (76,445) $ (521,083)
======== =========== ========== ============ ======== ============ ======== ============
<Caption>
AGGRESSIVE GROWTH LIFESTAGE FUND
------------------------------------------------- --------------------------------------------------
CLASS II+ CLASS I
------------------------------------------------- --------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002 OCTOBER 31, 2003 OCTOBER 31, 2002
--------------------- ------------------------- ------------------------ -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- ----------- ---------- ------------ -------- ------------ -------- ------------
Shares sold 36,095 $ 248,046 45,563 $ 380,095 358,945 $ 2,441,733 280,983 $ 2,138,818
Reinvested dividends 257 1,644 41 344 13,775 87,062 7,447 61,214
Shares redeemed (12,298) (83,537) (31,487) (275,989) (196,222) (1,365,993) (79,390) (587,171)
-------- ----------- ---------- ------------ -------- ------------ -------- ------------
Net increase (decrease) 24,054 $ 166,153 14,117 $ 104,450 176,498 $ 1,162,802 209,040 $ 1,612,861
======== =========== ========== ============ ======== ============ ======== ============
</Table>
- ----------
+ See Note 2
* Includes automatic conversion of 13,086 shares of Class B shares in the
amount of $30,684 to 13,064 shares of Class A shares in the amount of
$30,684.
** Includes automatic conversion of 1,270 shares of Class B shares in the amount
of $8,229 to 1,273 shares of Class A shares in the amount of $8,229.
48
<Page>
<Table>
<Caption>
MODERATE GROWTH LIFESTAGE FUND
---------------------------------------------------------------------------------------------------------
CLASS A CLASS B
-------------------------------------------------- -----------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002 OCTOBER 31, 2003 OCTOBER 31, 2002
------------------------ ---------------------- -------------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------- ----------- -------- ----------- --------- ------------ -------- ------------
Shares sold 232,971* $ 1,886,344* 121,248 $ 997,231 249,860 $ 1,994,140 261,161 $ 2,203,318
Reinvested dividends 7,877 58,996 5,608 50,695 13,846 104,263 8,440 76,638
Shares redeemed (66,147) (523,944) (79,893) (691,063) (235,930)* (1,859,332)* (206,329) (1,753,040)
--------- ----------- -------- ----------- --------- ------------ -------- ------------
Net increase (decrease) 174,701 $ 1,421,396 46,963 $ 356,863 27,776 $ 239,071 63,272 $ 526,916
========= =========== ======== =========== ========= ============ ======== ============
<Caption>
MODERATE GROWTH LIFESTAGE FUND
---------------------------------------------------------------------------------------------------------
CLASS II+ CLASS I
-------------------------------------------------- -----------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002 OCTOBER 31, 2003 OCTOBER 31, 2002
------------------------ ---------------------- -------------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------- ----------- -------- ----------- --------- ------------ -------- ------------
Shares sold 94,697 $ 753,188 67,822 $ 582,164 635,848 $ 5,055,913 672,505 $ 5,764,807
Reinvested dividends 1,166 8,792 481 4,379 25,881 193,593 14,350 129,438
Shares redeemed (41,656) (328,159) (24,662) (206,397) (283,315) (2,293,000) (238,088) (2,026,639)
--------- ----------- -------- ----------- --------- ------------ -------- ------------
Net increase (decrease) 54,207 $ 433,821 43,641 $ 380,146 378,414 $ 2,956,506 448,767 $ 3,867,606
========= =========== ======== =========== ========= ============ ======== ============
<Caption>
CONSERVATION GROWTH LIFESTAGE FUND
---------------------------------------------------------------------------------------------------------
CLASS A CLASS B
-------------------------------------------------- -----------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002 OCTOBER 31, 2003 OCTOBER 31, 2002
------------------------ ---------------------- -------------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------- ----------- -------- ----------- --------- ------------ -------- ------------
Shares sold 333,339** $ 2,967,854** 151,857 $ 1,331,153 154,401 $ 1,357,475 152,122 $ 1,346,548
Reinvested dividends 12,002 98,893 8,165 76,020 13,832 114,663 13,082 127,052
Shares redeemed (56,752) (493,137) (89,989) (808,598) (237,425)** (2,033,959)** (342,458) (3,097,024)
--------- ----------- -------- ----------- --------- ------------ -------- ------------
Net increase (decrease) 288,589 $ 2,573,610 70,033 $ 598,575 (69,192) $ (561,821) (177,254) $ (1,623,424)
========= =========== ======== =========== ========= ============ ======== ============
<Caption>
CONSERVATION GROWTH LIFESTAGE FUND
---------------------------------------------------------------------------------------------------------
CLASS II+ CLASS I
-------------------------------------------------- -----------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002 OCTOBER 31, 2003 OCTOBER 31, 2002
------------------------ ---------------------- -------------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------- ----------- -------- ----------- --------- ------------ -------- ------------
Shares sold 63,905 $ 548,541 94,644 $ 839,800 172,901 $ 1,506,225 175,836 $ 1,599,196
Reinvested dividends 2,663 22,160 950 8,928 18,285 150,668 13,749 128,001
Shares redeemed (33,713) (299,557) (19,358) (170,559) (270,955) (2,409,920) (61,696) (557,703)
--------- ----------- -------- ----------- --------- ------------ -------- ------------
Net increase (decrease) 32,855 $ 271,144 76,236 $ 678,169 (79,769) $ (753,027) 127,889 $ 1,169,494
========= =========== ======== =========== ========= ============ ======== ============
</Table>
- ----------
+ See Note 2
* Includes automatic conversion of 392 shares of Class B shares in the amount
of $3,278 to 392 shares of Class A shares in the amount of $3,278.
** Includes automatic conversion of 3,000 shares of Class B shares in the amount
of $26,706 to 3,008 shares of Class A shares in the amount of $26,706.
49
<Page>
NOTE 9. EXPENSE REDUCTIONS
Through expense offset arrangements, resulting from broker commission
recapture, a portion of the Fund's expenses have been reduced. For the period
ended October 31, 2003, the Science & Technology Fund received expense
reductions in the amount of $2,354.
NOTE 10. DIRECTORS' RETIREMENT PLAN
The Directors 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 who has at least 5 years
of consecutive service after reaching age 65 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 OCTOBER 31, 2003
---------------------------------
Biotech/Health Fund $ 4,276 $ 1,647
Tax Managed Equity Fund 9,757 2,487
Stock Index Fund 1,589 1,095
Science & Technology Fund 595 369
Aggressive Growth Lifestage Fund 634 634
Moderate Growth Lifestage Fund 934 934
Conservative Growth Lifestage Fund 608 608
</Table>
NOTE 11. 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
& Trust Co., 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, which is included in interest
expense of the statement of operations. Borrowings under the line of credit
will commence when the respective Fund's cash shortfall exceeds $100,000.
During the year ended October 31, 2003, none of the Funds participated in the
lines of credit agreement.
50
<Page>
The Funds, pursuant to exemptive relief granted by the Securities and
Exchange Commission are permitted to participate in an interfund lending
program among investment companies advised by SAAMCo or an affiliate. The
interfund lending program allows the participating Funds to borrow money from
and loan money to each other for temporary or emergency purposes. An
interfund loan will be made under this facility only if the participating
Funds receive a more favorable interest rate than would otherwise be
available from a typical bank for a comparable transaction. For the year
ended October 31, 2003 none of the Funds participated in this program.
NOTE 12. OTHER INFORMATION
On October 30, 2003, the Board of Directors approved the liquidation of
the Stock Index Fund and Science & Technology Fund. The Board of Directors
also approved the reorganizations of the Aggressive Growth LifeStage Fund
into the SunAmerica Style Select Series, Inc. Focused Equity Strategy
Portfolio and Moderate and Conservative Growth LifeStage Funds into the
SunAmerica Style Select Series, Inc. Focused Balanced Strategy Portfolio. In
addition, the Board of Directors approved the reorganization of the
Biotech/Health Fund and Tax Managed Equity Fund into newly created portfolios
of SunAmerica Equity Funds.
51
<Page>
REPORT OF INDEPENDENT AUDITORS
To the Board of Directors and Shareholders of SunAmerica Strategic Investment
Series, Inc.
In our opinion, the accompanying statements of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of SunAmerica Biotech/Health Fund, Tax
Managed Equity Fund, SunAmerica Stock Index Fund, SunAmerica Science &
Technology Fund, SunAmerica Aggressive Growth LifeStage Fund, SunAmerica
Moderate Growth LifeStage Fund and SunAmerica Conservative Growth LifeStage Fund
(seven of the portfolios constituting SunAmerica Strategic Investment Series,
Inc., hereafter referred to as the "Fund") at October 31, 2003, the results of
each of their operations for the year then ended and the changes in each of
their net assets and the financial highlights for each of the periods indicated,
in conformity with accounting principles generally accepted in the United States
of America. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with auditing standards generally accepted in the
United States of America, which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at October 31, 2003 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
New York, New York
December 17, 2003
52
<Page>
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(4) DURING PAST 5 YEARS DIRECTOR(1) DIRECTOR(2)
- ---------------------- ---------- ---------- --------------------------- ------------ ---------------------------------
S. James Coppersmith Director 1999- Retired. 46 Director of BJ's Wholesale
DOB: February 21, 1933 present Club, Inc.; Director, Boston
Stock Exchange.
Judith L. Craven Director 2001- Retired Administrator. 75 Director, A.G. Belo Corporation
DOB: October 6, 1945 present (1992 to present); Director,
Sysco Corporation (1996 to
present); Director, Luby's Inc.
(1998 to present).
William F. Devin Director 2001- Retired. 75 Member of the Board of Governors,
DOB: December 30, 1938 present Boston Stock Exchange
(1985-Present).
Samuel M. Eisenstat Chairman 1999- Attorney, solo practitioner. 47 Director, North European Oil
DOB: March 7, 1940 of the present Royalty Trust.
Board
Stephen J. Gutman Director 1999- President and Director, 47 None
DOB: May 10, 1943 present Beau Brummel-Soho LCC
(menswear specialty
retailing and other
activities) (June 1988
to present).
Peter A. Harbeck(3) Director 1999- President, CEO and Director, 84 None
DOB: January 23, 1954 present SAAMCo (August 1995 to
present). Director, SACS
(August 1993 to present).
</Table>
53
<Page>
<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(4) DURING PAST 5 YEARS DIRECTOR(1) DIRECTOR(2)
- ---------------------- ---------- ---------- --------------------------- ------------ ---------------------------------
Sebastiano Sterpa Director 1999- Founder and Chairman of the 37 Director, Real Estate Business
DOB: July 18, 1929 present Board of the Sterpa Group Service and Countrywide
(real estate investment Financial.
and 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 (9 portfolios), SunAmerica Senior
Floating Rate Fund, Inc. (1 fund), SunAmerica Series Trust (32 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.
(4) Directors serve until their successors are duly elected and qualified,
subject to the Board's retirement plan discussed in Note 10 of the financial
statements.
Additional information concerning the Directors is contained in the Statement of
Additional Information and is available without charge by calling
(800) 858-8850.
54
<Page>
SHAREHOLDER TAX INFORMATION -- (UNAUDITED)
Certain tax information regarding the SunAmerica Strategic Investment
Series, Inc. is required to be provided to shareholders based upon each Fund's
income and distributions for the taxable year ended October 31, 2003. The
information and distributions reported herein may differ from the information
and distributions taxable to the shareholders for the calendar year ending
December 31, 2003. The information necessary to complete your income tax returns
will be included with your Form 1099-DIV which will be sent to you under
separate cover in January 2004.
During the year ended October 31, 2003 the Funds paid the following
dividends:
<Table>
<Caption>
NET LONG-TERM
CAPITAL GAINS
-------------
Biotech/Health Fund --
Tax Managed Equity Fund --
Stock Index Fund --
Science & Technology Fund --
Aggressive Growth LifeStage Fund --
Moderate Growth LifeStage Fund --
Conservative Growth LifeStage Fund --
</Table>
For the year ended October 31, 2003, 100% of the dividends paid from
ordinary income by Stock Index Fund, Aggressive Growth LifeStage Fund, Moderate
Growth LifeStage Fund and Conservative Growth LifeStage Fund, qualified for the
70% dividends received deduction for corporations.
55
<Page>
[AIG SUN AMERICA 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 AND SECRETARY
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
THOMAS LYNCH, ASSISTANT SECRETARY
STACEY V. MORRISON, ASSISTANT SECRETARY
LAURA E. FILIPPONE, ASSISTANT TREASURER
GREGORY R. KINGSTON, VICE PRESIDENT AND ASSISTANT TREASURER
ROBERT CHOPYAK, 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.
Distributed by:
AIG SunAmerica Capital Services, Inc.
SISAN-10/03
<Page>
Item 2. Code of Ethics.
The SunAmerica Strategic Investment Series, Inc. has adopted a Code of Ethics
applicable to its Principal Executive and Principal Accounting Officers pursuant
to Section 406 of the Sarbanes-Oxley Act of 2002.
Item 3. Audit Committee Financial Expert.
Currently, the SunAmerica Strategic Investment Series, Inc. does not have an
Audit Committee member who possesses all of the attributes required to be an
"audit committee financial expert" as defined in instruction 2(b)of Item 3 of
Form N-CSR. However, the Board of Directors believes that each member of the
Audit Committee has substantial experience relating to the review of financial
statements and the operations of audit committees. Accordingly, the Board
believes that the members are qualified to evaluate the Fund's financial
statements, supervise the Fund's preparation of its financial statements, and
oversee the work of the Fund's independent auditors. The Board of Directors is
currently seeking an individual who will qualify as an audit committee financial
expert.
Item 4. Principal Accountant Fees and Services.
Not applicable
Item 5. Audit Committee of Listed Registrants.
Not applicable
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) There was no change in the Registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act)
that occurred during the Registrant's second fiscal half-year that has
materially affected, or is reasonably likely to materially affect, the
Registrant's internal control over financial reporting. However, a
situation was discovered at the registrant's transfer agent which
circumvented internal controls related to abandoned property procedures.
The registrant has worked with the transfer agent to develop corrective
actions to enhance the internal controls.
Item 10. Exhibits.
(a) (1) Code of Ethics applicable to its Principal Executive and Principal
Accounting Officers pursuant to Section 406 of the Sarbanes-Oxley Act of
2002 attached hereto as Exhibit 99.406.Code of Ethics.
(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: January 8, 2004
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: January 8, 2004
By: /s/ Donna M. Handel
Donna M. Handel
Treasurer
Date: January 8, 2004