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 811-04801
---------------------------------------------
SunAmerica Equity Funds
- --------------------------------------------------------------------------------
(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)
Vincent M. Marra
Senior Vice President & Chief Operating Officer
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) 324-6464
-----------------------------
Date of fiscal year end: September 30, 2004
--------------------------
Date of reporting period: March 31, 2005
-------------------------
Item 1. Reports to Stockholders
SunAmerica Equity Funds, Semiannual Report at March 31, 2005.
[GRAPHIC]
SunAmerica
Equity Funds
2005 SEMIANNUAL REPORT
[LOGO]
AIG Sun America
Mutual Funds
March 31, 2005 SEMIANNUAL REPORT
SUNAMERICA EQUITY FUNDS
SunAmerica Blue Chip Growth Fund (SVLAX)
SunAmerica Growth Opportunities Fund (SGWAX)
SunAmerica New Century Fund (SEGAX)
SunAmerica Growth and Income Fund (SEIAX)
SunAmerica Balanced Assets Fund (SBAAX)
SunAmerica International Equity Fund (SIEAX)
SunAmerica Value Fund (SSVAX)
SunAmerica Biotech/Health Fund (SBHAX)
Tax Managed Equity Fund (TXMAX)
Table of Contents
SHAREHOLDER LETTER.......................................................... 2
EXPENSE EXAMPLE............................................................. 3
STATEMENT OF ASSETS AND LIABILITIES......................................... 5
STATEMENT OF OPERATIONS..................................................... 9
STATEMENT OF CHANGES IN NET ASSETS.......................................... 12
FINANCIAL HIGHLIGHTS........................................................ 17
PORTFOLIO OF INVESTMENTS.................................................... 26
NOTES TO FINANCIAL STATEMENTS............................................... 53
APPROVAL OF ADVISORY AGREEMENTS............................................. 72
TRUSTEE AND OFFICER INFORMATION............................................. 76
Shareholder Letter
Dear Shareholder:
We are pleased to present this Semi-Annual Report for the SunAmerica Equity
Funds, and to take this opportunity to discuss the economic and market
conditions that have shaped the investment environment in the six-months ended
March 31, 2005.
The period was marked by contrasting quarters, with the equities markets
rebounding significantly in the fourth calendar quarter 2004, while results
were more mixed during the first three months of 2005. For instance, the S&P
500 Index declined 2.5% in January, advanced 1.9% in February, only to fall
another 1.9% in March on renewed inflation and interest rate concerns.
The Funds' fiscal year opened on a positive note with stocks rallying across
the board. Investor optimism was fueled by a combination of political and
economic factors. The results of the November election were largely seen as
favorable for the stock market. A second Bush administration raised the
probability of permanent tax cuts and continued pro-growth policies. Despite
ongoing geo-political unrest, the economy continued to expand at a moderate
pace. Corporate earnings were strong and employment grew. The Federal Reserve
Bank's measured approach to tightening the money quelled investor uncertainty
and inflation remained subdued.
Small and mid-cap stocks gained significantly in the fourth calendar quarter.
All S&P sectors delivered positive returns during the first three months of the
period. Technology and Consumer Discretionary sectors outperformed the broader
market, while the Energy and Healthcare sectors were laggards.
Following the impressive late-year rally, sentiment changed significantly with
the New Year. Commodity prices rose across the board, threatening to hamper
corporate profit margins. Uneven jobs growth, a downturn in consumer spending
and speculation that the Federal Reserve Bank might move more aggressively to
tighten the money supply dampened investor optimism. Economic growth slowed as
the lagged effects of higher oil prices and increasing interest rates took
hold. The dollar collapsed, hitting new lows versus the euro. Fears of an
economic downturn emerged and continued funding of the current account deficit
weighed heavily on the minds of investors. While there were some pockets of
strength, the equity markets in general reflected these concerns, and ended the
reporting period down.
As the market turned more conservative in January, large-cap stocks gained
favor, particularly the value category. In terms of industry groups, Energy and
Utilities were the best performing sectors of the S&P 500 Index in the first
quarter 2005, while the Financial, Technology, and Telecom sectors
under-performed.
Thank you for your continued investment in our Funds and we encourage you to
visit our website, www.sunamericafunds.com for more information.
Sincerely,
The AIG SunAmerica Equity Funds Investment Professionals
Brian Clifford Allison Larkin Gregory Parker Andrew Sheridan
Heather Doucette James Monaghan Timothy Pettee
Jeff Easter Steve Neimeth Dawn Schuchman
Francis Gannon Chad Palumbo Hans Danielsson, AIGGIC
- --------
Past performance is no guarantee of future results.
2
SunAmerica Equity Funds
EXPENSE EXAMPLE -- March 31, 2005 -- (unaudited)
Disclosure of Portfolio Expenses in Shareholder Reports
As a shareholder of a Fund in the SunAmerica Equity Funds (the "Trust"), you
may incur two types of costs: (1) transaction costs, including sales charges on
purchase payments, contingent deferred sales charges, redemption fees
(applicable to International Equity Fund only) and (2) ongoing costs, including
management fees; distribution and service fees; and other Fund expenses. This
Example is intended to help you understand your ongoing costs (in dollars) of
investing in the Funds and to compare these costs with the ongoing costs of
investing in other mutual funds. The Example is based on an investment of
$1,000 invested at October 1, 2004 and held until March 31, 2005.
Actual Expenses
The "Actual" section of the table provides information about actual account
values and actual expenses. You may use the information in these columns,
together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the column under the heading entitled "Expenses Paid During The Six
Months Ended March 31, 2005" to estimate the expenses you paid on your account
during this period. For shareholder accounts in classes other than Class I,
Class X, and Class Z the "Expenses Paid During The Six Months Ended March 31,
2005" column does not include small account fees that may be charged if your
account balance is below $500 ($250 for retirement plan accounts). In addition,
the "Expenses Paid During The Six Months Ended March 31, 2005" column does not
include administrative fees that may apply to qualified retirement plan
accounts. See the Funds' prospectus and/or the retirement plan document for
full description of these fees. Had these fees been included, the "Expenses
Paid During The Six Months Ended March 31, 2005" column would have been higher
and the "Ending Account Value" would have been lower.
Hypothetical Example for Comparison Purposes
The "Hypothetical" section of the table provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is
not the Fund's actual return. The hypothetical account values and expenses may
not be used to estimate the actual ending account balance or expenses you paid
for the period. You may use this information to compare the ongoing costs of
investing in the Funds and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder
reports of other funds. For shareholder accounts in classes other than Class I,
Class X, and Class Z the "Expenses Paid During The Six Months Ended March 31,
2005" column does not include small account fees that may be charged if your
account balance is below $500 ($250 for retirement plan accounts). In addition,
the "Expenses Paid During The Six Months Ended March 31, 2005" column does not
include administrative fees that may apply to qualified retirement plan
accounts. See the Funds' prospectus and/or the retirement plan document for
full description of these fees. Had these fees been included, the "Expenses
Paid During The Six Months Ended March 31, 2005" column would have been higher
and the "Ending Account Value" would have been lower.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs, including sales
charges on purchase payments, contingent deferred sales charges, redemption
fees (International Equity Fund only); small account fees and administrative
fees, if applicable to your account. Please refer to your Prospectus and/or
qualified retirement plan document for more information. Therefore, the
"Hypothetical" example is useful in comparing ongoing costs only, and will not
help you determine the relative total costs of owning different funds. In
addition, if these transaction costs and other fees were included, your costs
would have been higher.
3
SunAmerica Equity Funds
EXPENSE EXAMPLE -- March 31, 2005 -- (unaudited) (continued)
Actual Hypothetical
----------------------------------------- -----------------------------------------
Ending Account
Ending Account Expense Paid Value using Expense Paid
Value Using During the a Hypothetical During the Expense
Beginning Actual Six Months Beginning 5% Assumed Six Months Ratio
Account Value Return at Ended Account Value Return at Ended as of
at October 1, March 31, March 31, at October 1, March 31, March 31, March 31,
2004 2005 2005 2004 2005 2005 2005*
------------- -------------- ------------ ------------- -------------- ------------ ---------
Blue Chip Growth Fund
Class A................ $1,000.00 $1,031.94 $ 8.00 $1,000.00 $1,017.05 $ 7.95 1.58%
Class B................ $1,000.00 $1,027.56 $11.68 $1,000.00 $1,013.41 $11.60 2.31%
Class C................ $1,000.00 $1,026.88 $12.33 $1,000.00 $1,012.76 $12.24 2.44%
Class I#............... $1,000.00 $1,033.17 $ 6.74 $1,000.00 $1,018.30 $ 6.69 1.33%
Growth Opportunities Fund
Class A................ $1,000.00 $1,098.90 $ 8.53 $1,000.00 $1,016.80 $ 8.20 1.63%
Class B................ $1,000.00 $1,095.36 $12.02 $1,000.00 $1,013.46 $11.55 2.30%
Class C................ $1,000.00 $1,095.51 $12.17 $1,000.00 $1,013.31 $11.70 2.33%
Class I#............... $1,000.00 $1,100.36 $ 6.96 $1,000.00 $1,018.30 $ 6.69 1.33%
New Century Fund
Class A................ $1,000.00 $1,133.38 $ 8.30 $1,000.00 $1,017.15 $ 7.85 1.56%
Class B................ $1,000.00 $1,129.48 $12.37 $1,000.00 $1,013.31 $11.70 2.33%
Class C#............... $1,000.00 $1,130.90 $11.37 $1,000.00 $1,014.26 $10.75 2.14%
Growth and Income Fund
Class A................ $1,000.00 $1,079.08 $ 7.93 $1,000.00 $1,017.30 $ 7.70 1.53%
Class B................ $1,000.00 $1,075.35 $11.33 $1,000.00 $1,014.01 $11.00 2.19%
Class C................ $1,000.00 $1,076.42 $11.23 $1,000.00 $1,014.11 $10.90 2.17%
Class I#............... $1,000.00 $1,079.97 $ 6.85 $1,000.00 $1,018.35 $ 6.64 1.32%
Balanced Assets Fund
Class A................ $1,000.00 $1,031.73 $ 8.00 $1,000.00 $1,017.05 $ 7.95 1.58%
Class B................ $1,000.00 $1,028.41 $11.43 $1,000.00 $1,013.66 $11.35 2.26%
Class C................ $1,000.00 $1,028.37 $11.28 $1,000.00 $1,013.81 $11.20 2.23%
Class I#............... $1,000.00 $1,033.27 $ 6.74 $1,000.00 $1,018.30 $ 6.69 1.33%
International Equity Fund
Class A#............... $1,000.00 $1,155.88 $10.21 $1,000.00 $1,015.46 $ 9.55 1.90%
Class B#............... $1,000.00 $1,151.70 $13.68 $1,000.00 $1,012.22 $12.79 2.55%
Class C#............... $1,000.00 $1,151.86 $13.68 $1,000.00 $1,012.22 $12.79 2.55%
Class I#............... $1,000.00 $1,156.10 $ 9.68 $1,000.00 $1,015.96 $ 9.05 1.80%
Value Fund
Class A#............... $1,000.00 $1,104.52 $ 8.55 $1,000.00 $1,016.80 $ 8.20 1.63%
Class B#............... $1,000.00 $1,101.06 $11.94 $1,000.00 $1,013.56 $11.45 2.28%
Class C#............... $1,000.00 $1,101.06 $11.94 $1,000.00 $1,013.56 $11.45 2.28%
Class I#............... $1,000.00 $1,105.07 $ 8.03 $1,000.00 $1,017.30 $ 7.70 1.53%
Class Z#............... $1,000.00 $1,108.18 $ 5.57 $1,000.00 $1,019.65 $ 5.34 1.06%
Biotech/Health Fund
Class A#............... $1,000.00 $ 915.84 $ 7.40 $1,000.00 $1,017.20 $ 7.80 1.55%
Class B#............... $1,000.00 $ 913.34 $10.49 $1,000.00 $1,013.96 $11.05 2.20%
Class C#............... $1,000.00 $ 913.54 $10.50 $1,000.00 $1,013.96 $11.05 2.20%
Tax Managed Equity Fund
Class A#............... $1,000.00 $1,041.72 $ 7.38 $1,000.00 $1,017.70 $ 7.29 1.45%
Class B#............... $1,000.00 $1,038.67 $10.67 $1,000.00 $1,014.46 $10.55 2.10%
Class C#............... $1,000.00 $1,038.60 $10.67 $1,000.00 $1,014.46 $10.55 2.10%
- --------
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 182 days divided by 365
days. These ratios do not reflect transaction costs, including sales charges
on purchase payments, contingent deferred sales charges, redemption fees
(International Equity Fund only), small account fees and administrative
fees, if applicable to your account. Please refer to your Prospectus and/or
qualified retirement plan document for more information.
# During the stated period, the investment advisor either waived a portion of
or all of fees and assumed a portion of or all expenses for the Funds or
through recoupment provisions, recovered a portion of or all fees and
expenses waived or reimbursed in the previous two fiscal years. As a result,
if these fees and expenses had not been waived or assumed, the
"Actual/Hypothetical Ending Account Value" would have been lower and the
"Actual/Hypothetical Expenses Paid During the Period" and the "Expense
Ratios" would have been higher. If these fees and expenses had not been
recouped, the "Actual/Hypothetical Ending Account Value" would have been
higher and the "Actual/Hypothetical Expenses Paid During the Six Months
Ended March 31, 2005" and "Expense Ratios" would have been lower.
4
SunAmerica Equity Funds
STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2005 -- (unaudited)
Blue Chip Growth New
Growth Opportunities Century
Fund Fund Fund
------------ ------------- -------------
ASSETS:
Long-term investment securities, at value (unaffiliated)*......................... $ 91,320,244 $ 83,687,345 $ 83,645,559
Long-term investment securities, at value (affiliated)*........................... -- -- --
Short-term investment securities, at value*....................................... -- -- --
Repurchase agreements (cost equals market value).................................. 451,000 6,622,000 15,489,000
------------ ------------- -------------
Total Investments............................................................... 91,771,244 90,309,345 99,134,559
------------ ------------- -------------
Cash.............................................................................. 251 672 430
Foreign cash*..................................................................... -- -- --
Receivable for:
Fund shares sold................................................................ 17,504 33,250 92,037
Dividends and interest.......................................................... 66,089 6,745 11,773
Investments sold................................................................ 1,514,061 4,233,613 3,653,158
Prepaid expenses and other assets................................................. 2,424 2,562 2,345
Due from investment adviser for expense reimbursements/fee waivers................ 1,130 3,503 4,697
------------ ------------- -------------
Total Assets.................................................................... 93,372,703 94,589,690 102,898,999
------------ ------------- -------------
LIABILITIES:
Payable for:
Fund shares redeemed............................................................ 156,188 385,598 62,172
Investments purchased........................................................... 1,963,198 3,214,178 3,449,631
Interest on securities sold short............................................... -- -- --
Investment advisory and management fees......................................... 59,379 60,143 64,276
Distribution and service maintenance fees....................................... 44,890 52,157 37,486
Transfer agent fees and expenses................................................ 47,589 43,806 31,473
Trustees' fee and expenses...................................................... 31,627 26,238 51,043
Other accrued expenses.......................................................... 61,745 59,857 53,629
Securities sold short, at value#.................................................. -- -- --
------------ ------------- -------------
Total Liabilities............................................................... 2,364,616 3,841,977 3,749,710
------------ ------------- -------------
Net Assets..................................................................... $ 91,008,087 $ 90,747,713 $ 99,149,289
============ ============= =============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value..................................... $ 65,007 $ 63,784 $ 60,233
Paid-in capital................................................................... 167,617,775 305,322,818 202,014,743
------------ ------------- -------------
167,682,782 305,386,602 202,074,976
Accumulated undistributed net investment income (loss)............................ 45,190 (781,836) (583,804)
Accumulated undistributed net realized gain (loss) on investments, securities sold
short and foreign exchange transactions.......................................... (79,410,695) (221,094,992) (114,090,914)
Unrealized appreciation (depreciation) on investments............................. 2,690,810 7,237,939 11,749,031
Unrealized foreign exchange gain (loss) on other assets and liabilities........... -- -- --
Unrealized appreciation (depreciation) on securities sold short................... -- -- --
------------ ------------- -------------
Net Assets..................................................................... $ 91,008,087 $ 90,747,713 $ 99,149,289
============ ============= =============
*Cost
Long-term investment securities (unaffiliated).................................. $ 88,629,434 $ 76,449,406 $ 71,896,528
============ ============= =============
Long-term investment securities (affiliated).................................... $ -- $ -- $ --
============ ============= =============
Short-term investment securities................................................ $ -- $ -- $ --
============ ============= =============
Foreign cash.................................................................... $ -- $ -- $ --
============ ============= =============
# Proceeds from securities sold short............................................. $ -- $ -- $ --
============ ============= =============
Growth and Balanced
Income Assets
Fund Fund
------------ ------------
ASSETS:
Long-term investment securities, at value (unaffiliated)*......................... $159,800,571 $203,125,163
Long-term investment securities, at value (affiliated)*........................... -- --
Short-term investment securities, at value*....................................... -- --
Repurchase agreements (cost equals market value).................................. 1,656,000 5,372,000
------------ ------------
Total Investments............................................................... 161,456,571 208,497,163
------------ ------------
Cash.............................................................................. 667 109,493
Foreign cash*..................................................................... -- --
Receivable for:
Fund shares sold................................................................ 93,161 26,997
Dividends and interest.......................................................... 245,641 795,512
Investments sold................................................................ 390,488 2,088,163
Prepaid expenses and other assets................................................. 5,305 5,324
Due from investment adviser for expense reimbursements/fee waivers................ 976 3,550
------------ ------------
Total Assets.................................................................... 162,192,809 211,526,202
------------ ------------
LIABILITIES:
Payable for:
Fund shares redeemed............................................................ 262,437 334,314
Investments purchased........................................................... 315,750 3,508,711
Interest on securities sold short............................................... -- 1,250
Investment advisory and management fees......................................... 105,093 134,784
Distribution and service maintenance fees....................................... 100,877 93,931
Transfer agent fees and expenses................................................ 57,928 47,213
Trustees' fee and expenses...................................................... 40,045 88,479
Other accrued expenses.......................................................... 59,540 139,250
Securities sold short, at value#.................................................. -- 733,594
------------ ------------
Total Liabilities............................................................... 941,670 5,081,526
------------ ------------
Net Assets..................................................................... $161,251,139 $206,444,676
============ ============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value..................................... $ 136,164 $ 153,499
Paid-in capital................................................................... 215,862,366 288,952,278
------------ ------------
215,998,530 289,105,777
Accumulated undistributed net investment income (loss)............................ 473,258 (453,563)
Accumulated undistributed net realized gain (loss) on investments, securities sold
short and foreign exchange transactions.......................................... (67,590,250) (87,782,246)
Unrealized appreciation (depreciation) on investments............................. 12,369,601 5,578,341
Unrealized foreign exchange gain (loss) on other assets and liabilities........... -- --
Unrealized appreciation (depreciation) on securities sold short................... -- (3,633)
------------ ------------
Net Assets..................................................................... $161,251,139 $206,444,676
============ ============
*Cost
Long-term investment securities (unaffiliated).................................. $147,430,970 $197,546,822
============ ============
Long-term investment securities (affiliated).................................... $ -- $ --
============ ============
Short-term investment securities................................................ $ -- $ --
============ ============
Foreign cash.................................................................... $ -- $ --
============ ============
# Proceeds from securities sold short............................................. $ -- $ 729,961
============ ============
- --------
See Notes to Financial Statements
5
SunAmerica Equity Funds
STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2005 -- (unaudited)
(continued)
Blue Chip Growth New
Growth Opportunities Century
Fund Fund Fund
----------- ------------- -----------
Class A (unlimited shares authorized):
Net assets........................................................................ $58,325,078 $46,470,352 $85,961,917
Shares of beneficial interest issued and outstanding.............................. 4,012,203 3,097,073 5,134,129
Net asset value and redemption price per share.................................... $ 14.54 $ 15.00 $ 16.74
Maximum sales charge (5.75% of offering price).................................... 0.89 0.92 1.02
----------- ----------- -----------
Maximum offering price to public.................................................. 15.43 15.92 17.76
=========== =========== ===========
Class B (unlimited shares authorized):
Net assets........................................................................ $24,743,504 $29,232,459 $11,001,078
Shares of beneficial interest issued and outstanding.............................. 1,895,456 2,175,129 742,031
Net asset value, offering and redemption price per share (excluding any applicable
contingent deferred sales charge)................................................ $ 13.05 $ 13.44 $ 14.83
=========== =========== ===========
Class C (unlimited shares authorized):
Net assets........................................................................ $ 5,861,486 $13,290,569 $ 2,186,294
Shares of beneficial interest issued and outstanding.............................. 451,106 990,269 147,106
Net asset value, offering and redemption price per share (excluding any applicable
contingent deferred sales charge)................................................ $ 12.99 $ 13.42 $ 14.86
=========== =========== ===========
Class I+ (unlimited shares authorized):
Net assets........................................................................ $ 2,078,019 $ 1,754,333 $ --
Shares of beneficial interest issued and outstanding.............................. 141,933 115,936 --
Net asset value, offering and redemption price per share.......................... $ 14.64 $ 15.13 $ --
=========== =========== ===========
Class Z (unlimited shares authorized):
Net assets........................................................................ $ -- $ -- $ --
Shares of beneficial interest issued and outstanding.............................. -- -- --
Net asset value, offering and redemption price per share.......................... $ -- $ -- $ --
=========== =========== ===========
Growth and Balanced
Income Assets
Fund Fund
----------- ------------
Class A (unlimited shares authorized):
Net assets........................................................................ $68,834,637 $150,847,464
Shares of beneficial interest issued and outstanding.............................. 5,623,029 11,207,111
Net asset value and redemption price per share.................................... $ 12.24 $ 13.46
Maximum sales charge (5.75% of offering price).................................... 0.75 0.82
----------- ------------
Maximum offering price to public.................................................. 12.99 14.28
=========== ============
Class B (unlimited shares authorized):
Net assets........................................................................ $49,679,201 $ 34,323,048
Shares of beneficial interest issued and outstanding.............................. 4,296,236 2,559,156
Net asset value, offering and redemption price per share (excluding any applicable
contingent deferred sales charge)................................................ $ 11.56 $ 13.41
=========== ============
Class C (unlimited shares authorized):
Net assets........................................................................ $41,851,720 $ 20,526,872
Shares of beneficial interest issued and outstanding.............................. 3,625,003 1,528,221
Net asset value, offering and redemption price per share (excluding any applicable
contingent deferred sales charge)................................................ $ 11.55 $ 13.43
=========== ============
Class I+ (unlimited shares authorized):
Net assets........................................................................ $ 885,581 $ 747,292
Shares of beneficial interest issued and outstanding.............................. 72,149 55,442
Net asset value, offering and redemption price per share.......................... $ 12.27 $ 13.48
=========== ============
Class Z (unlimited shares authorized):
Net assets........................................................................ $ -- $ --
Shares of beneficial interest issued and outstanding.............................. -- --
Net asset value, offering and redemption price per share.......................... $ -- $ --
=========== ============
- --------
+ See Note 1
See Notes to Financial Statements
6
SunAmerica Equity Funds
STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2005 -- (unaudited)
(continued)
International
Equity Fund Value Fund
------------- ------------
ASSETS:
Long-term investment securities, at value (unaffiliated)*........................................... $ 79,420,637 $236,180,226
Long-term investment securities, at value (affiliated)*............................................. -- --
Short-term investment securities, at value*......................................................... -- --
Repurchase agreements (cost equals market value).................................................... 3,035,000 4,936,000
------------ ------------
Total Investments................................................................................. 82,455,637 241,116,226
------------ ------------
Cash................................................................................................ 834,169 577
Foreign cash*....................................................................................... 58,325 --
Receivable for:
Fund shares sold.................................................................................. 105,292 659,230
Dividends and interest............................................................................ 223,688 400,179
Investments sold.................................................................................. 1,167,944 390,488
Prepaid expenses and other assets................................................................... 1,959 48,244
Due from investment adviser for expense reimbursements/fee waivers.................................. 8,549 --
------------ ------------
Total Assets...................................................................................... 84,855,563 242,614,944
------------ ------------
LIABILITIES:
Payable for:
Fund shares redeemed.............................................................................. 122,319 542,618
Investments purchased............................................................................. 2,011,218 814,024
Interest on securities sold short................................................................. -- --
Investment advisory and management fees........................................................... 71,606 205,878
Distribution and service maintenance fees......................................................... 46,334 125,144
Transfer agent fees and expenses.................................................................. 37,167 83,211
Trustees' fee and expenses........................................................................ 18,523 29,895
Other accrued expenses............................................................................ 92,823 140,987
Securities sold short, at value#.................................................................... -- --
------------ ------------
Total Liabilities................................................................................. 2,399,990 1,941,757
------------ ------------
Net Assets....................................................................................... $ 82,455,573 $240,673,187
============ ============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value....................................................... $ 71,776 $ 140,449
Paid-in capital..................................................................................... 119,980,647 213,663,605
------------ ------------
120,052,423 213,804,054
Accumulated undistributed net investment income (loss).............................................. (653,226) 291,516
Accumulated undistributed net realized gain (loss) on investments, securities sold short and foreign
exchange transactions.............................................................................. (45,628,463) 3,410,275
Unrealized appreciation (depreciation) on investments............................................... 8,669,819 23,167,453
Unrealized foreign exchange gain (loss) on other assets and liabilities............................. 15,020 (111)
Unrealized appreciation (depreciation) on securities sold short..................................... -- --
------------ ------------
Net Assets....................................................................................... $ 82,455,573 $240,673,187
============ ============
*Cost
Long-term investment securities (unaffiliated).................................................... $ 70,750,818 $213,012,773
============ ============
Long-term investment securities (affiliated)...................................................... $ -- $ --
============ ============
Short-term investment securities.................................................................. $ -- $ --
============ ============
Foreign cash...................................................................................... $ 58,125 $ --
============ ============
# Proceeds from securities sold short............................................................... $ -- $ --
============ ============
Tax
Biotech/ Managed
Health Fund Equity Fund
------------ ------------
ASSETS:
Long-term investment securities, at value (unaffiliated)*........................................... $ 29,887,050 $ 46,141,473
Long-term investment securities, at value (affiliated)*............................................. -- 249,345
Short-term investment securities, at value*......................................................... -- 739,000
Repurchase agreements (cost equals market value).................................................... 2,538,000 --
------------ ------------
Total Investments................................................................................. 32,425,050 47,129,818
------------ ------------
Cash................................................................................................ 854 946
Foreign cash*....................................................................................... -- --
Receivable for:
Fund shares sold.................................................................................. 18,183 511
Dividends and interest............................................................................ 169 55,547
Investments sold.................................................................................. -- 519,927
Prepaid expenses and other assets................................................................... 25,374 1,236
Due from investment adviser for expense reimbursements/fee waivers.................................. 6,485 12,903
------------ ------------
Total Assets...................................................................................... 32,476,115 47,720,888
------------ ------------
LIABILITIES:
Payable for:
Fund shares redeemed.............................................................................. 60,773 46,266
Investments purchased............................................................................. -- 394,919
Interest on securities sold short................................................................. -- --
Investment advisory and management fees........................................................... 21,038 34,908
Distribution and service maintenance fees......................................................... 20,674 33,971
Transfer agent fees and expenses.................................................................. 20,046 14,378
Trustees' fee and expenses........................................................................ 5,403 10,790
Other accrued expenses............................................................................ 60,956 33,387
Securities sold short, at value#.................................................................... -- --
------------ ------------
Total Liabilities................................................................................. 188,890 568,619
------------ ------------
Net Assets....................................................................................... $ 32,287,225 $ 47,152,269
============ ============
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value....................................................... $ 39,761 $ 41,402
Paid-in capital..................................................................................... 67,594,099 77,370,275
------------ ------------
67,633,860 77,411,677
Accumulated undistributed net investment income (loss).............................................. (343,628) 89,416
Accumulated undistributed net realized gain (loss) on investments, securities sold short and foreign
exchange transactions.............................................................................. (35,133,069) (31,350,970)
Unrealized appreciation (depreciation) on investments............................................... 130,062 1,002,146
Unrealized foreign exchange gain (loss) on other assets and liabilities............................. -- --
Unrealized appreciation (depreciation) on securities sold short..................................... -- --
------------ ------------
Net Assets....................................................................................... $ 32,287,225 $ 47,152,269
============ ============
*Cost
Long-term investment securities (unaffiliated).................................................... $ 29,756,988 $ 45,078,180
============ ============
Long-term investment securities (affiliated)...................................................... $ -- $ 310,492
============ ============
Short-term investment securities.................................................................. $ -- $ 739,000
============ ============
Foreign cash...................................................................................... $ -- $ --
============ ============
# Proceeds from securities sold short............................................................... $ -- $ --
============ ============
- --------
See Notes to Financial Statements
7
SunAmerica Equity Funds
STATEMENT OF ASSETS AND LIABILITIES -- March 31, 2005 -- (unaudited)
(continued)
International
Equity Fund Value Fund
------------- ------------
Class A (unlimited shares authorized):
Net assets............................................................................................ $38,067,847 $118,084,163
Shares of beneficial interest issued and outstanding.................................................. 3,229,812 6,771,413
Net asset value and redemption price per share........................................................ $ 11.79 $ 17.44
Maximum sales charge (5.75% of offering price)........................................................ 0.72 1.06
----------- ------------
Maximum offering price to public...................................................................... 12.51 18.50
=========== ============
Class B (unlimited shares authorized):
Net assets............................................................................................ $21,152,671 $ 65,368,355
Shares of beneficial interest issued and outstanding.................................................. 1,895,987 3,915,811
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred
sales charge)........................................................................................ $ 11.16 $ 16.69
=========== ============
Class C (unlimited shares authorized):
Net assets............................................................................................ $17,110,908 $ 37,957,406
Shares of beneficial interest issued and outstanding.................................................. 1,535,147 2,274,107
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred
sales charge)........................................................................................ $ 11.15 $ 16.69
=========== ============
Class I+ (unlimited shares authorized):
Net assets............................................................................................ $ 6,124,147 $ 5,921,553
Shares of beneficial interest issued and outstanding.................................................. 516,672 339,791
Net asset value, offering and redemption price per share.............................................. $ 11.85 $ 17.43
=========== ============
Class Z (unlimited shares authorized):
Net assets............................................................................................ $ -- $ 13,341,710
Shares of beneficial interest issued and outstanding.................................................. -- 743,805
Net asset value, offering and redemption price per share.............................................. $ -- $ 17.94
=========== ============
Tax
Biotech/ Managed
Health Fund Equity Fund
----------- -----------
Class A (unlimited shares authorized):
Net assets............................................................................................ $13,104,032 $12,531,173
Shares of beneficial interest issued and outstanding.................................................. 1,583,763 1,072,950
Net asset value and redemption price per share........................................................ $ 8.27 $ 11.68
Maximum sales charge (5.75% of offering price)........................................................ 0.50 0.71
----------- -----------
Maximum offering price to public...................................................................... 8.77 12.39
=========== ===========
Class B (unlimited shares authorized):
Net assets............................................................................................ $11,327,995 $17,920,768
Shares of beneficial interest issued and outstanding.................................................. 1,413,839 1,588,721
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred
sales charge)........................................................................................ $ 8.01 $ 11.28
=========== ===========
Class C (unlimited shares authorized):
Net assets............................................................................................ $ 7,855,198 $16,700,328
Shares of beneficial interest issued and outstanding.................................................. 978,454 1,478,552
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred
sales charge)........................................................................................ $ 8.03 $ 11.30
=========== ===========
Class I+ (unlimited shares authorized):
Net assets............................................................................................ $ -- $ --
Shares of beneficial interest issued and outstanding.................................................. -- --
Net asset value, offering and redemption price per share.............................................. $ -- $ --
=========== ===========
Class Z (unlimited shares authorized):
Net assets............................................................................................ $ -- $ --
Shares of beneficial interest issued and outstanding.................................................. -- --
Net asset value, offering and redemption price per share.............................................. $ -- $ --
=========== ===========
- --------
+ See Note 1
See Notes to Financial Statements
8
SunAmerica Equity Funds
STATEMENT OF OPERATIONS -- For the period ended March 31, 2005 --
(unaudited)
Blue Chip Growth New
Growth Opportunities Century
Fund Fund Fund
----------- ------------- -----------
INVESTMENT INCOME:
Dividends (unaffiliated)............................................................ $ 958,729 $ 150,297 $ 233,203
Dividends (affiliated).............................................................. -- -- --
Interest (unaffiliated)............................................................. 13,481 52,779 61,083
----------- ----------- -----------
Total investment income*........................................................... 972,210 203,076 294,286
----------- ----------- -----------
Expenses:
Investment advisory and management fees............................................. 365,705 372,940 371,697
Distribution and service maintenance fees
Class A............................................................................ 108,366 87,867 149,453
Class B............................................................................ 135,855 156,779 57,354
Class C............................................................................ 31,188 71,760 11,235
Service fees Class I................................................................ 2,737 4,328 --
Transfer agent fees and expenses
Class A............................................................................ 87,485 75,329 121,891
Class B............................................................................ 46,754 51,584 17,337
Class C............................................................................ 10,853 22,362 3,165
Class I+........................................................................... 2,408 3,910 --
Class X+........................................................................... -- 79 --
Class Z............................................................................ -- -- --
Registration fees
Class A............................................................................ 7,876 12,388 12,956
Class B............................................................................ 6,156 7,361 7,650
Class C............................................................................ 5,228 5,792 8,013
Class I+........................................................................... 5,717 7,472 --
Class X+........................................................................... -- 240 --
Class Z............................................................................ -- -- --
Custodian fees...................................................................... 32,286 29,559 29,079
Reports to shareholders............................................................. 26,538 32,101 15,089
Audit and tax fees.................................................................. 15,113 14,905 15,101
Legal fees.......................................................................... 2,166 2,262 3,660
Trustees' fees and expenses......................................................... 2,877 3,705 3,297
Interest expense.................................................................... 1,231 81 547
Other expenses...................................................................... 5,140 4,898 6,110
----------- ----------- -----------
Total expenses before fee waivers, expense reimbursements and custody credits...... 901,679 967,702 833,634
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4).. (6,417) (8,906) (8,451)
Custody credits earned on cash balances............................................ (3) (320) (4)
----------- ----------- -----------
Net expenses....................................................................... 895,259 958,476 825,179
----------- ----------- -----------
Net investment income (loss).......................................................... 76,951 (755,400) (530,893)
----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)**.............................. 5,947,668 (206,261) 11,307,545
Net realized gain (loss) on investments (affiliated).................................. -- -- --
Net realized gain (loss) on securities sold short..................................... -- -- --
Net realized foreign exchange gain (loss) on other assets and liabilities............. -- -- --
----------- ----------- -----------
Net realized gain (loss) on investments and foreign currencies........................ 5,947,668 (206,261) 11,307,545
----------- ----------- -----------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)........ (2,841,879) 10,601,962 1,488,216
Change in unrealized appreciation (depreciation) on investments (affiliated).......... -- -- --
Change in unrealized foreign exchange gain (loss) on other assets and liabilities..... -- -- --
Change in unrealized appreciation (depreciation) on securities sold short............. -- -- --
----------- ----------- -----------
Net unrealized gain (loss) on investments and foreign currencies...................... (2,841,879) 10,601,962 1,488,216
----------- ----------- -----------
Net realized and unrealized gain (loss) on investments and foreign currencies......... 3,105,789 10,395,701 12,795,761
----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $ 3,182,740 $ 9,640,301 $12,264,868
=========== =========== ===========
* Net of foreign withholding taxes on interest and dividends of...................... $ -- $ -- $ --
=========== =========== ===========
** Net of foreign withholding taxes on capital gains of............................... $ -- $ -- $ --
=========== =========== ===========
- --------
+ See Note 1
See Notes to Financial Statements
9
SunAmerica Equity Funds
STATEMENT OF OPERATIONS -- For the period ended March 31, 2005 --
(unaudited) (continued)
Growth and Balanced
Income Assets International
Fund Fund Equity Fund
----------- ----------- -------------
INVESTMENT INCOME:
Dividends (unaffiliated)............................................................ $ 2,328,635 $ 1,643,874 $ 301,339
Dividends (affiliated).............................................................. -- -- --
Interest (unaffiliated)............................................................. 29,995 2,173,060 3,648
----------- ----------- -----------
Total investment income*........................................................... 2,358,630 3,816,934 304,987
----------- ----------- -----------
Expenses:
Investment advisory and management fees............................................. 633,193 823,374 395,623
Distribution and service maintenance fees
Class A............................................................................ 123,193 279,122 62,279
Class B............................................................................ 267,220 186,745 107,344
Class C............................................................................ 220,725 109,960 84,023
Service fees Class I................................................................ 1,083 909 6,579
Transfer agent fees and expenses
Class A............................................................................ 101,280 238,760 50,370
Class B............................................................................ 77,844 57,206 37,165
Class C............................................................................ 59,534 29,632 25,688
Class I+........................................................................... 953 800 5,808
Class X+........................................................................... -- -- --
Class Z............................................................................ -- -- --
Registration fees
Class A............................................................................ 6,977 14,482 7,573
Class B............................................................................ 6,762 8,049 7,252
Class C............................................................................ 6,937 5,150 5,975
Class I+........................................................................... 5,027 7,586 4,614
Class X+........................................................................... -- -- --
Class Z............................................................................ -- -- --
Custodian fees...................................................................... 33,519 88,351 89,489
Reports to shareholders............................................................. 35,041 46,564 28,854
Audit and tax fees.................................................................. 15,030 15,052 17,521
Legal fees.......................................................................... 2,884 6,838 3,092
Trustees' fees and expenses......................................................... 6,074 7,811 2,472
Interest expense.................................................................... -- 4,283 432
Other expenses...................................................................... 8,816 11,097 5,344
----------- ----------- -----------
Total expenses before fee waivers, expense reimbursements and custody credits...... 1,612,092 1,941,771 947,497
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4).. (5,113) (7,780) (67,387)
Custody credits earned on cash balances............................................ (4) (499) (197)
----------- ----------- -----------
Net expenses....................................................................... 1,606,975 1,933,492 879,913
----------- ----------- -----------
Net investment income (loss).......................................................... 751,655 1,883,442 (574,926)
----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)**.............................. 6,771,089 8,499,705 6,115,029
Net realized gain (loss) on investments (affiliated).................................. -- -- --
Net realized gain (loss) on securities sold short..................................... -- (3,633) --
Net realized foreign exchange gain (loss) on other assets and liabilities............. -- -- (32,263)
----------- ----------- -----------
Net realized gain (loss) on investments and foreign currencies........................ 6,771,089 8,496,072 6,082,766
----------- ----------- -----------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)........ 5,310,807 (3,344,031) 5,467,911
Change in unrealized appreciation (depreciation) on investments (affiliated).......... -- -- --
Change in unrealized foreign exchange gain (loss) on other assets and liabilities..... -- -- 4,609
Change in unrealized appreciation (depreciation) on securities sold short............. -- (3,633) --
----------- ----------- -----------
Net unrealized gain (loss) on investments and foreign currencies...................... 5,310,807 (3,347,664) 5,472,520
----------- ----------- -----------
Net realized and unrealized gain (loss) on investments and foreign currencies......... 12,081,896 5,148,408 11,555,286
----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $12,833,551 $ 7,031,850 $10,980,360
=========== =========== ===========
* Net of foreign withholding taxes on interest and dividends of...................... $ 5,926 $ 2,421 $ 16,693
=========== =========== ===========
** Net of foreign withholding taxes on capital gains of............................... $ -- $ -- $ 26,008
=========== =========== ===========
- --------
+ See Note 1
See Notes to Financial Statements
10
SunAmerica Equity Funds
STATEMENT OF OPERATIONS -- For the period ended March 31, 2005 --
(unaudited) (continued)
Tax
Biotech/ Managed
Value Fund Health Fund Equity Fund
----------- ----------- -----------
INVESTMENT INCOME:
Dividends (unaffiliated)............................................................ $ 3,174,478 $ -- $ 650,256
Dividends (affiliated).............................................................. -- -- 1,028
Interest (unaffiliated)............................................................. 47,435 24,972 2,308
----------- ----------- ----------
Total investment income*........................................................... 3,221,913 24,972 653,592
----------- ----------- ----------
Expenses:
Investment advisory and management fees............................................. 1,125,771 141,060 213,975
Distribution and service maintenance fees
Class A............................................................................ 186,053 26,440 23,243
Class B............................................................................ 341,856 65,684 95,524
Class C............................................................................ 175,061 46,852 89,803
Service fees Class I................................................................ 6,757 -- --
Transfer agent fees and expenses
Class A............................................................................ 158,000 22,565 17,385
Class B............................................................................ 117,572 20,142 24,295
Class C............................................................................ 49,198 15,254 22,505
Class I+........................................................................... 7,820 -- --
Class X+........................................................................... -- -- --
Class Z............................................................................ -- -- --
Registration fees
Class A............................................................................ 10,821 6,250 4,330
Class B............................................................................ 9,046 7,607 3,862
Class C............................................................................ 3,832 5,531 2,724
Class I+........................................................................... 9,049 -- --
Class X+........................................................................... -- -- --
Class Z............................................................................ 7,761 -- --
Custodian fees...................................................................... 39,733 33,371 27,496
Reports to shareholders............................................................. 50,765 14,533 7,376
Audit and tax fees.................................................................. 23,259 18,782 12,322
Legal fees.......................................................................... 8,535 2,345 7,153
Trustees' fees and expenses......................................................... 6,574 1,429 1,631
Interest expense.................................................................... -- 771 --
Other expenses...................................................................... 10,693 5,657 5,645
----------- ----------- ----------
Total expenses before fee waivers, expense reimbursements and custody credits...... 2,348,156 434,273 559,269
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4).. (208,094) (69,486) (73,788)
Custody credits earned on cash balances............................................ (401) (97) (3)
----------- ----------- ----------
Net expenses....................................................................... 2,139,661 364,690 485,478
----------- ----------- ----------
Net investment income (loss).......................................................... 1,082,252 (339,718) 168,114
----------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)**.............................. 4,073,318 (581,383) 192,475
Net realized gain (loss) on investments (affiliated).................................. -- -- (23,530)
Net realized gain (loss) on securities sold short..................................... -- -- --
Net realized foreign exchange gain (loss) on other assets and liabilities............. -- -- --
----------- ----------- ----------
Net realized gain (loss) on investments and foreign currencies........................ 4,073,318 (581,383) 168,945
----------- ----------- ----------
Change in unrealized appreciation (depreciation) on investments (unaffiliated)........ 16,142,237 (2,258,116) 1,757,997
Change in unrealized appreciation (depreciation) on investments (affiliated).......... -- -- (48,459)
Change in unrealized foreign exchange gain (loss) on other assets and liabilities..... (111) -- --
Change in unrealized appreciation (depreciation) on securities sold short............. -- (44,479) --
----------- ----------- ----------
Net unrealized gain (loss) on investments and foreign currencies...................... 16,142,126 (2,302,595) 1,709,538
----------- ----------- ----------
Net realized and unrealized gain (loss) on investments and foreign currencies......... 20,215,444 (2,883,978) 1,878,483
----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $21,297,696 $(3,223,696) $2,046,597
=========== =========== ==========
* Net of foreign withholding taxes on interest and dividends of...................... $ 19,951 $ -- $ --
=========== =========== ==========
** Net of foreign withholding taxes on capital gains of............................... $ -- $ -- $ --
=========== =========== ==========
- --------
+ See Note 1
See Notes to Financial Statements
11
SunAmerica Equity Funds
STATEMENT OF CHANGES IN NET ASSETS
Blue Chip Growth Fund
--------------------------
For the
six months
ended For the year
March 31, ended
2005 September 30,
(unaudited) 2004
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ 76,951 $ (913,394)
Net realized gain (loss) on investments and foreign currencies........................ 5,947,668 11,475,942
Net unrealized gain (loss) on investments and foreign currencies...................... (2,841,879) (486,122)
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... 3,182,740 10,076,426
------------ ------------
Distributions to shareholders from:
Net investment income (Class A)....................................................... -- --
Net investment income (Class B)....................................................... -- --
Net investment income (Class C)*...................................................... -- --
Net investment income (Class I)#...................................................... -- --
Net investment income (Class X)#...................................................... -- --
Net investment income (Class Z)....................................................... -- --
Net realized gain on securities (Class A)............................................. -- --
Net realized gain on securities (Class B)............................................. -- --
Net realized gain on securities (Class C)*............................................ -- --
Net realized gain on securities (Class I)#............................................ -- --
Net realized gain on securities (Class X)#............................................ -- --
Net realized gain on securities (Class Z)............................................. -- --
------------ ------------
Total distributions to shareholders..................................................... -- --
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 7) (11,058,482) (33,190,986)
------------ ------------
Total increase (decrease) in net assets................................................. (7,875,742) (23,114,560)
NET ASSETS:
Beginning of period..................................................................... 98,883,829 121,998,389
------------ ------------
End of period+.......................................................................... $ 91,008,087 $ 98,883,829
============ ============
+Includes accumulated undistributed net investment income (loss)........................ $ 45,190 $ (31,761)
============ ============
Growth Opportunities Fund
--------------------------
For the
six months
ended For the year
March 31, ended
2005 September 30,
(unaudited) 2004
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ (755,400) $ (1,750,951)
Net realized gain (loss) on investments and foreign currencies........................ (206,261) 17,334,422
Net unrealized gain (loss) on investments and foreign currencies...................... 10,601,962 (14,638,630)
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... 9,640,301 944,841
------------ ------------
Distributions to shareholders from:
Net investment income (Class A)....................................................... -- --
Net investment income (Class B)....................................................... -- --
Net investment income (Class C)*...................................................... -- --
Net investment income (Class I)#...................................................... -- --
Net investment income (Class X)#...................................................... -- --
Net investment income (Class Z)....................................................... -- --
Net realized gain on securities (Class A)............................................. -- --
Net realized gain on securities (Class B)............................................. -- --
Net realized gain on securities (Class C)*............................................ -- --
Net realized gain on securities (Class I)#............................................ -- --
Net realized gain on securities (Class X)#............................................ -- --
Net realized gain on securities (Class Z)............................................. -- --
------------ ------------
Total distributions to shareholders..................................................... -- --
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 7) (18,407,659) (37,430,765)
------------ ------------
Total increase (decrease) in net assets................................................. (8,767,358) (36,485,924)
NET ASSETS:
Beginning of period..................................................................... 99,515,071 136,000,995
------------ ------------
End of period+.......................................................................... $ 90,747,713 $ 99,515,071
============ ============
+Includes accumulated undistributed net investment income (loss)........................ $ (781,836) $ (26,436)
============ ============
- --------
* Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
# See Note 1
See Notes to Financial Statements
12
SunAmerica Equity Funds
STATEMENT OF CHANGES IN NET ASSETS -- (continued)
New Century Fund
-------------------------
For the
six months
ended For the year
March 31, ended
2005 September 30,
(unaudited) 2004
----------- -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ (530,893) $ (1,337,534)
Net realized gain (loss) on investments and foreign currencies........................ 11,307,545 21,078,641
Net unrealized gain (loss) on investments and foreign currencies...................... 1,488,216 (9,349,183)
----------- ------------
Net increase (decrease) in net assets resulting from operations......................... 12,264,868 10,391,924
----------- ------------
Distributions to shareholders from:
Net investment income (Class A)....................................................... -- --
Net investment income (Class B)....................................................... -- --
Net investment income (Class C)*...................................................... -- --
Net investment income (Class I)#...................................................... -- --
Net investment income (Class X)#...................................................... -- --
Net investment income (Class Z)....................................................... -- --
Net realized gain on securities (Class A)............................................. -- --
Net realized gain on securities (Class B)............................................. -- --
Net realized gain on securities (Class C)*............................................ -- --
Net realized gain on securities (Class I)#............................................ -- --
Net realized gain on securities (Class X)#............................................ -- --
Net realized gain on securities (Class Z)............................................. -- --
----------- ------------
Total distributions to shareholders..................................................... -- --
----------- ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 7) (7,581,788) (24,446,387)
----------- ------------
Total increase (decrease) in net assets................................................. 4,683,080 (14,054,463)
NET ASSETS:
Beginning of period..................................................................... 94,466,209 108,520,672
----------- ------------
End of period+.......................................................................... $99,149,289 $ 94,466,209
=========== ============
+Includes accumulated undistributed net investment income (loss)........................ $ (583,804) $ (52,911)
=========== ============
Growth and Income Fund
--------------------------
For the
six months
ended For the year
March 31, ended
2005 September 30,
(unaudited) 2004
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ 751,655 $ (712,451)
Net realized gain (loss) on investments and foreign currencies........................ 6,771,089 21,332,421
Net unrealized gain (loss) on investments and foreign currencies...................... 5,310,807 1,758,468
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... 12,833,551 22,378,438
------------ ------------
Distributions to shareholders from:
Net investment income (Class A)....................................................... (235,106) --
Net investment income (Class B)....................................................... -- --
Net investment income (Class C)*...................................................... -- --
Net investment income (Class I)#...................................................... (3,703) --
Net investment income (Class X)#...................................................... -- --
Net investment income (Class Z)....................................................... -- --
Net realized gain on securities (Class A)............................................. -- --
Net realized gain on securities (Class B)............................................. -- --
Net realized gain on securities (Class C)*............................................ -- --
Net realized gain on securities (Class I)#............................................ -- --
Net realized gain on securities (Class X)#............................................ -- --
Net realized gain on securities (Class Z)............................................. -- --
------------ ------------
Total distributions to shareholders..................................................... (238,809) --
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 7) (19,373,098) (54,045,242)
------------ ------------
Total increase (decrease) in net assets................................................. (6,778,356) (31,666,804)
NET ASSETS:
Beginning of period..................................................................... 168,029,495 199,696,299
------------ ------------
End of period+.......................................................................... $161,251,139 $168,029,495
============ ============
+Includes accumulated undistributed net investment income (loss)........................ $ 473,258 $ (39,588)
============ ============
- --------
* Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
# See Note 1
See Notes to Financial Statements
13
SunAmerica Equity Funds
STATEMENT OF CHANGES IN NET ASSETS -- (continued)
Balanced Assets Fund
--------------------------
For the
six months
ended For the year
March 31, ended
2005 September 30,
(unaudited) 2004
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ 1,883,442 $ 1,696,718
Net realized gain (loss) on investments and foreign currencies........................ 8,496,072 13,676,958
Net unrealized gain (loss) on investments and foreign currencies...................... (3,347,664) 1,994,840
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... 7,031,850 17,368,516
------------ ------------
Distributions to shareholders from:
Net investment income (Class A)....................................................... (1,736,140) (2,084,942)
Net investment income (Class B)....................................................... (284,247) (228,463)
Net investment income (Class C)*...................................................... (167,173) (131,080)
Net investment income (Class I)#...................................................... (9,328) (41,818)
Net investment income (Class X)#...................................................... -- --
Net investment income (Class Z)....................................................... -- --
Net realized gain on securities (Class A)............................................. -- --
Net realized gain on securities (Class B)............................................. -- --
Net realized gain on securities (Class C)*............................................ -- --
Net realized gain on securities (Class I)#............................................ -- --
Net realized gain on securities (Class X)#............................................ -- --
Net realized gain on securities (Class Z)............................................. -- --
------------ ------------
Total distributions to shareholders..................................................... (2,196,888) (2,486,303)
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 7) (20,805,849) (45,643,904)
------------ ------------
Total increase (decrease) in net assets................................................. (15,970,887) (30,761,691)
NET ASSETS:
Beginning of period..................................................................... 222,415,563 253,177,254
------------ ------------
End of period+.......................................................................... $206,444,676 $222,415,563
============ ============
+Includes accumulated undistributed net investment income (loss)........................ $ (453,563) $ (140,117)
============ ============
International Equity Fund
-------------------------
For the
six months
ended For the year
March 31, ended
2005 September 30,
(unaudited) 2004
----------- -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ (574,926) $ (289,498)
Net realized gain (loss) on investments and foreign currencies........................ 6,082,766 19,896,893
Net unrealized gain (loss) on investments and foreign currencies...................... 5,472,520 (4,019,593)
----------- ------------
Net increase (decrease) in net assets resulting from operations......................... 10,980,360 15,587,802
----------- ------------
Distributions to shareholders from:
Net investment income (Class A)....................................................... -- (11,064)
Net investment income (Class B)....................................................... -- --
Net investment income (Class C)*...................................................... -- --
Net investment income (Class I)#...................................................... -- (17,397)
Net investment income (Class X)#...................................................... -- --
Net investment income (Class Z)....................................................... -- --
Net realized gain on securities (Class A)............................................. -- --
Net realized gain on securities (Class B)............................................. -- --
Net realized gain on securities (Class C)*............................................ -- --
Net realized gain on securities (Class I)#............................................ -- --
Net realized gain on securities (Class X)#............................................ -- --
Net realized gain on securities (Class Z)............................................. -- --
----------- ------------
Total distributions to shareholders..................................................... -- (28,461)
----------- ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 7) (1,450,093) (31,438,220)
----------- ------------
Total increase (decrease) in net assets................................................. 9,530,267 (15,878,879)
NET ASSETS:
Beginning of period..................................................................... 72,925,306 88,804,185
----------- ------------
End of period+.......................................................................... $82,455,573 $ 72,925,306
=========== ============
+Includes accumulated undistributed net investment income (loss)........................ $ (653,226) $ (78,300)
=========== ============
- --------
* Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
# See Note 1
See Notes to Financial Statements
14
SunAmerica Equity Funds
STATEMENT OF CHANGES IN NET ASSETS -- (continued)
Value Fund+
----------------------------------------
For the
six months For the
ended eleven months For the year
March 31, ended ended
2005 September 30, October 31,
(unaudited) 2004 2003
------------ ------------- ------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)................................. $ 1,082,252 $ 3,213,316 $ 2,576,355
Net realized gain (loss) on investments and foreign
currencies.................................................. 4,073,318 24,461,025 5,430,390
Net unrealized gain (loss) on investments and foreign
currencies.................................................. 16,142,126 (3,708,718) 16,873,967
------------ ------------ ------------
Net increase (decrease) in net assets resulting from operations 21,297,696 23,965,623 24,880,712
------------ ------------ ------------
Distributions to shareholders from:
Net investment income (Class A).............................. (1,618,502) (1,362,535) (640,709)
Net investment income (Class B).............................. (693,156) (1,446,298) (441,621)
Net investment income (Class C)*............................. (345,179) (408,038) (107,249)
Net investment income (Class I)#............................. (84,084) (166,307) (64,209)
Net investment income (Class X)#............................. -- -- --
Net investment income (Class Z).............................. (191,677) (126,802) (6,189)
Net realized gain on securities (Class A).................... (9,914,545) (1,664,101) (1,668,760)
Net realized gain on securities (Class B).................... (6,829,375) (2,379,441) (2,600,325)
Net realized gain on securities (Class C)*................... (3,400,905) (671,301) (631,495)
Net realized gain on securities (Class I)#................... (502,260) (189,120) (153,195)
Net realized gain on securities (Class X)#................... -- -- --
Net realized gain on securities (Class Z).................... (868,391) (128,732) (11,260)
------------ ------------ ------------
Total distributions to shareholders............................ (24,448,074) (8,542,675) (6,325,012)
------------ ------------ ------------
Net increase (decrease) in net assets resulting from capital
share transactions (Note 7)................................... 40,458,632 8,936,841 7,300,864
------------ ------------ ------------
Total increase (decrease) in net assets........................ 37,308,254 24,359,789 25,856,564
NET ASSETS:
Beginning of period............................................ 203,364,933 179,005,144 153,148,580
------------ ------------ ------------
End of period+................................................. $240,673,187 $203,364,933 $179,005,144
============ ============ ============
+Includes accumulated undistributed net investment income
(loss)........................................................ $ 291,516 $ 2,141,862 $ 2,426,803
============ ============ ============
Biotech/Health Fund+
--------------------------------------
For the
six months For the
ended eleven months For the year
March 31, ended ended
2005 September 30, October 31,
(unaudited) 2004 2003
----------- ------------- ------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)................................. $ (339,718) $ (689,915) $ (760,809)
Net realized gain (loss) on investments and foreign
currencies.................................................. (581,383) 1,545,657 (882,501)
Net unrealized gain (loss) on investments and foreign
currencies.................................................. (2,302,595) (4,702,003) 12,390,274
----------- ----------- -----------
Net increase (decrease) in net assets resulting from operations (3,223,696) (3,846,261) 10,746,964
----------- ----------- -----------
Distributions to shareholders from:
Net investment income (Class A).............................. -- -- --
Net investment income (Class B).............................. -- -- --
Net investment income (Class C)*............................. -- -- --
Net investment income (Class I)#............................. -- -- --
Net investment income (Class X)#............................. -- -- --
Net investment income (Class Z).............................. -- -- --
Net realized gain on securities (Class A).................... -- -- --
Net realized gain on securities (Class B).................... -- -- --
Net realized gain on securities (Class C)*................... -- -- --
Net realized gain on securities (Class I)#................... -- -- --
Net realized gain on securities (Class X)#................... -- -- --
Net realized gain on securities (Class Z).................... -- -- --
----------- ----------- -----------
Total distributions to shareholders............................ -- -- --
----------- ----------- -----------
Net increase (decrease) in net assets resulting from capital
share transactions (Note 7)................................... (5,129,196) (4,941,478) (5,616,681)
----------- ----------- -----------
Total increase (decrease) in net assets........................ (8,352,892) (8,787,739) 5,130,283
NET ASSETS:
Beginning of period............................................ 40,640,117 49,427,856 44,297,573
----------- ----------- -----------
End of period+................................................. $32,287,225 $40,640,117 $49,427,856
=========== =========== ===========
+Includes accumulated undistributed net investment income
(loss)........................................................ $ (343,628) $ (3,910) $ (3,177)
=========== =========== ===========
- --------
* Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
# See Note 1
+ See Note 2
See Notes to Financial Statements
15
SunAmerica Equity Funds
STATEMENT OF CHANGES IN NET ASSETS -- (continued)
Tax Managed Equity Fund+
---------------------------------------
For the
six months For the
ended eleven months For the year
March 31, ended ended
2005 September 30, October 31,
(unaudited) 2004 2003
----------- ------------- ------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ 168,114 $ (125,272) $ (86,619)
Net realized gain (loss) on investments and foreign currencies........................ 168,945 (596,071) (4,260,050)
Net unrealized gain (loss) on investments and foreign currencies...................... 1,709,538 4,818,298 13,156,086
----------- ------------ ------------
Net increase (decrease) in net assets resulting from operations......................... 2,046,597 4,096,955 8,809,417
----------- ------------ ------------
Distributions to shareholders from:
Net investment income (Class A)....................................................... (69,828) -- --
Net investment income (Class B)....................................................... -- -- --
Net investment income (Class C)*...................................................... -- -- --
Net investment income (Class I)#...................................................... -- -- --
Net investment income (Class X)#...................................................... -- -- --
Net investment income (Class Z)....................................................... -- -- --
Net realized gain on securities (Class A)............................................. -- -- --
Net realized gain on securities (Class B)............................................. -- -- --
Net realized gain on securities (Class C)*............................................ -- -- --
Net realized gain on securities (Class I)#............................................ -- -- --
Net realized gain on securities (Class X)#............................................ -- -- --
Net realized gain on securities (Class Z)............................................. -- -- --
----------- ------------ ------------
Total distributions to shareholders..................................................... (69,828) -- --
----------- ------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 7) (6,350,525) (13,177,953) (16,922,143)
----------- ------------ ------------
Total increase (decrease) in net assets................................................. (4,373,756) (9,080,998) (8,112,726)
NET ASSETS:
Beginning of period..................................................................... 51,526,025 60,607,023 68,719,749
----------- ------------ ------------
End of period+.......................................................................... $47,152,269 $ 51,526,025 $ 60,607,023
=========== ============ ============
+Includes accumulated undistributed net investment income (loss)........................ $ 89,416 $ (8,870) $ (8,076)
=========== ============ ============
- --------
* Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
# See Note 1
+ See Note 2
See Notes to Financial Statements
16
SunAmerica Equity Funds
FINANCIAL HIGHLIGHTS
BLUE CHIP GROWTH FUND
---------------------
Net gain
(loss) on
Net investments Distri- Net Net
Asset Net (both Dividends butions Asset Assets
Value investment realized Total from from net from Total Value end of
beginning income and investment investment capital Distri- end of Total period
Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's)
- -------------------- --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- --------
Class A
- -
09/30/00 $23.62 $(0.14) $ 8.00 $ 7.86 $-- $(2.46) $(2.46) $29.02 34.66% $152,788
09/30/01 29.02 (0.03) (11.13) (11.16) -- (3.51) (3.51) 14.35 (42.23) 82,523
09/30/02 14.35 (0.07) (3.13) (3.20) -- -- -- 11.15 (22.30) 59,812
09/30/03 11.15 (0.06) 2.03 1.97 -- -- -- 13.12 17.67 64,672
09/30/04 13.12 (0.08) 1.05 0.97 -- -- -- 14.09 7.39 62,316
10/01/04-03/31/05(7) 14.09 0.03 0.42 0.45 -- -- -- 14.54 3.19 58,325
Class B
- -
09/30/00 $22.43 $(0.31) $ 7.58 $ 7.27 $-- $(2.46) $(2.46) $27.24 33.80% $ 67,586
09/30/01 27.24 (0.16) (10.35) (10.51) -- (3.51) (3.51) 13.22 (42.66) 34,649
09/30/02 13.22 (0.16) (2.86) (3.02) -- -- -- 10.20 (22.84) 31,203
09/30/03 10.20 (0.14) 1.84 1.70 -- -- -- 11.90 16.67 30,263
09/30/04 11.90 (0.16) 0.96 0.80 -- -- -- 12.70 6.72 27,946
10/01/04-03/31/05(7) 12.70 (0.02) 0.37 0.35 -- -- -- 13.05 2.76 24,744
Class C+
--------
09/30/00 $22.43 $(0.31) $ 7.53 $ 7.22 $-- $(2.46) $(2.46) $27.19 33.57% $ 8,939
09/30/01 27.19 (0.15) (10.32) (10.47) -- (3.51) (3.51) 13.21 (42.58) 6,127
09/30/02 13.21 (0.16) (2.87) (3.03) -- -- -- 10.18 (22.94) 7,687
09/30/03 10.18 (0.16) 1.85 1.69 -- -- -- 11.87 16.60 7,286
09/30/04 11.87 (0.18) 0.96 0.78 -- -- -- 12.65 6.57 6,458
10/01/04-03/31/05(7) 12.65 (0.03) 0.37 0.34 -- -- -- 12.99 2.69 5,861
Class I
-------
11/16/01-09/30/02(3) $16.30 $(0.04) $ (5.10) $ (5.14) $-- $ -- $ -- $11.16 (31.53)% $ 15,612
09/30/03 11.16 (0.04) 2.04 2.00 -- -- -- 13.16 17.92 19,778
09/30/04 13.16 (0.04) 1.05 1.01 -- -- -- 14.17 7.67 2,164
10/01/04-03/31/05(7) 14.17 0.05 0.42 0.47 -- -- -- 14.64 3.32 2,078
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets net assets Turnover
- ---------- ------------- ---------
1.43% (0.49)% 75%
1.45 (0.15) 136
1.47(6) (0.47)(6) 107
1.54 (0.50) 114
1.60 (0.59) 145
1.58(4) 0.40(4) 66
2.09% (1.16)% 75%
2.19 (0.89) 136
2.18(6) (1.18)(6) 107
2.32 (1.28) 114
2.26 (1.25) 145
2.31(4) (0.31)(4) 66
2.17%(5) (1.17)%(5) 75%
2.11(5) (0.81)(5) 136
2.23(5)(6) (1.25)(5)(6) 107
2.44(5) (1.40)(5) 114
2.37(5) (1.37)(5) 145
2.44(4) (0.43)(4) 66
1.33%(4)(5)(6) (0.32)%(4)(5)(6) 107%
1.33(5) (0.29)(5) 114
1.33(5) (0.26)(5) 145
1.33(4)(5) 0.67(4)(5) 66
- --------
(1)Calculated based upon average shares outstanding
(2)Total return is not annualized and does not reflect sales load. Total return
does include expense reimbursements and expense reductions.
(3)Commencement of sale of respective class of shares
(4)Annualized
(5)Net of the following expense reimbursements (based on average net assets):
09/30/00 09/30/01 09/30/02(6) 09/30/03 09/30/04 03/31/05(4)
-------- -------- ----------- -------- -------- -----------
Blue Chip Growth Class C+ 0.17% 0.03% 0.00% -- % -- % -- %
Blue Chip Growth Class I. -- -- 0.08(4) 0.33 0.13 0.59
(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%
(7)Unaudited
+ Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
See Notes to Financial Statements
17
SunAmerica Equity Funds
FINANCIAL HIGHLIGHTS -- (continued)
GROWTH OPPORTUNITIES FUND
-------------------------
Net gain
(loss) on
Net investments Distri- Net
Asset Net (both Dividends butions Asset Net
Value investment realized Total from from net from Total Value Assets end
beginning income and investment investment capital Distri- end of Total of period
Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's)
- -------------------- --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- ----------
Class A
- -
09/30/00 $23.12 $(0.17) $ 21.77 $ 21.60 $-- $(3.93) $(3.93) $40.79 102.04% $206,531
09/30/01 40.79 (0.14) (22.33) (22.47) -- (2.90) (2.90) 15.42 (58.23) 89,935
09/30/02 15.42 (0.17) (5.26) (5.43) -- -- -- 9.99 (35.21) 50,018
09/30/03 9.99 (0.13) 3.88 3.75 -- -- -- 13.74 37.54 62,600
09/30/04 13.74 (0.16) 0.07 (0.09) -- -- -- 13.65 (0.66)(7) 49,918
10/01/04-03/31/05(8) 13.65 (0.09) 1.44 1.35 -- -- -- 15.00 9.89 46,470
Class B
- -
09/30/00 $21.88 $(0.37) $ 20.42 $ 20.05 $-- $(3.93) $(3.93) $38.00 100.58% $108,083
09/30/01 38.00 (0.28) (20.66) (20.94) -- (2.90) (2.90) 14.16 (58.50) 54,902
09/30/02 14.16 (0.26) (4.79) (5.05) -- -- -- 9.11 (35.66) 33,221
09/30/03 9.11 (0.20) 3.53 3.33 -- -- -- 12.44 36.55 38,870
09/30/04 12.44 (0.24) 0.07 (0.17) -- -- -- 12.27 (1.37)(7) 31,429
10/01/04-03/31/05(8) 12.27 (0.13) 1.30 1.17 -- -- -- 13.44 9.54 29,232
Class C+
- -
09/30/00 $21.88 $(0.33) $ 20.35 $ 20.02 $-- $(3.93) $(3.93) $37.97 100.44% $ 65,322
09/30/01 37.97 (0.28) (20.64) (20.92) -- (2.90) (2.90) 14.15 (58.50) 31,594
09/30/02 14.15 (0.26) (4.79) (5.05) -- -- -- 9.10 (35.69) 17,484
09/30/03 9.10 (0.20) 3.53 3.33 -- -- -- 12.43 36.59 19,808
09/30/04 12.43 (0.24) 0.06 (0.18) -- -- -- 12.25 (1.45)(7) 14,599
10/01/04-03/31/05(8) 12.25 (0.13) 1.30 1.17 -- -- -- 13.42 9.55 13,291
Class I
- -
11/16/01-09/30/02(3) $18.09 $(0.14) $ (7.95) $ (8.09) $-- $ -- $ -- $10.00 (44.72)% $ 3,054
09/30/03 10.00 (0.10) 3.90 3.80 -- -- -- 13.80 38.00 4,404
09/30/04 13.80 (0.13) 0.08 (0.05) -- -- -- 13.75 (0.36)(7) 3,493
10/01/04-03/31/05(8) 13.75 (0.07) 1.45 1.38 -- -- -- 15.13 10.04 1,754
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets net assets Turnover
- ---------- ------------- ---------
1.43% 0.49% 139%
1.49 (0.57) 207
1.49(6) (1.11)(6) 344
1.63 (1.11) 204
1.58 (1.09) 170
1.63(4) (1.22)(4) 40
2.10% (1.11)% 139%
2.17 (1.25) 207
2.18(6) (1.80)(6) 344
2.36 (1.85) 204
2.27 (1.78) 170
2.30(4) (1.89)(4) 40
2.09%(5) (0.99)%(5) 139%
2.16(5) (1.24)(5) 207
2.21(5)(6) (1.82)(5)(6) 344
2.33(5) (1.82)(5) 204
2.29(5) (1.80)(5) 170
2.33(4)(5) (1.92)(4)(5) 40
1.33%(4)(5)(6) (0.95)%(4)(5)(6) 344%
1.33(5) (0.82)(5) 204
1.33(5) (0.85)(5) 170
1.33(4)(5) (0.92)(4)(5) 40
- --------
(1)Calculated based upon average shares outstanding
(2)Total return is not annualized and does not reflect sales load. Total return
does include expense reimbursements and expense reductions.
(3)Commencement of sale of respective class of shares
(4)Annualized
(5)Net of the following expense reimbursements (based on average net assets):
09/30/00 09/30/01 09/30/02(6) 09/30/03 09/30/04 03/31/05(4)
-------- -------- ----------- -------- -------- -----------
Growth Opportunities Class C+ 0.01% -- % -- % -- % -- % -- %
Growth Opportunities Class I. -- -- 0.18(4) 0.50 0.18 0.51
(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 remained the same.
(7)The Fund's total return increased from a gain realized on the disposal of
investments in violation of investment restrictions: Class A 0.07%, Class B
0.10%, Class C 0.10% and Class I 0.08%.
(8)Unaudited
+ Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
See Notes to Financial Statements
18
SunAmerica Equity Funds
FINANCIAL HIGHLIGHTS -- (continued)
NEW CENTURY FUND
----------------
Net gain
(loss) on
Net investments Distri- Net Net
Asset Net (both Dividends butions Asset Assets
Value investment realized Total from from net from Total Value end of
beginning income and investment investment capital Distri end of Total period
Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's)
- -------------------- --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- --------
Class A
- -
09/30/00 $27.38 $(0.31) $ 19.04 $ 18.73 $-- $(4.97) $(4.97) $41.14 72.74% $253,359
09/30/01 41.14 (0.05) (19.00) (19.05) -- (8.88) (8.88) 13.21 (54.88) 101,691
09/30/02 13.21 (0.13) (1.86) (1.99) -- -- -- 11.22 (15.06) 74,710
09/30/03 11.22 (0.13) 2.35 2.22 -- -- -- 13.44 19.79 85,685
09/30/04 13.44 (0.17) 1.50 1.33 -- -- -- 14.77 9.90 80,872
10/01/04-03/31/05(5) 14.77 (0.08) 2.05 1.97 -- -- -- 16.74 13.34 85,962
Class B
- -
09/30/00 $26.07 $(0.53) $ 18.04 $ 17.51 $-- $(4.97) $(4.97) $38.61 71.59% $122,004
09/30/01 38.61 (0.17) (17.57) (17.74) -- (8.88) (8.88) 11.99 (55.15) 39,577
09/30/02 11.99 (0.20) (1.68) (1.88) -- -- -- 10.11 (15.68) 23,271
09/30/03 10.11 (0.20) 2.12 1.92 -- -- -- 12.03 18.99 16,078
09/30/04 12.03 (0.25) 1.35 1.10 -- -- -- 13.13 9.14 11,415
10/01/04-03/31/05(5) 13.13 (0.13) 1.83 1.70 -- -- -- 14.83 12.95 11,001
Class C+
- -
09/30/00 $26.05 $(0.54) $ 18.01 $ 17.47 $-- $(4.97) $(4.97) $38.55 71.48% $ 10,848
09/30/01 38.55 (0.17) (17.54) (17.71) -- (8.88) (8.88) 11.96 (55.16) 4,508
09/30/02 11.96 (0.20) (1.67) (1.87) -- -- -- 10.09 (15.64) 2,447
09/30/03 10.09 (0.18) 2.11 1.93 -- -- -- 12.02 19.13 2,183
09/30/04 12.02 (0.22) 1.34 1.12 -- -- -- 13.14 9.32 2,180
10/01/04-03/31/05(5) 13.14 (0.11) 1.83 1.72 -- -- -- 14.86 13.09 2,186
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets net assets Turnover
- ---------- ------------- ---------
1.42% (0.80)% 227%
1.46 (0.23) 282
1.50 (0.92) 199
1.57 (1.08) 123
1.57 (1.20) 110
1.56(3) (0.97)(3) 23
2.07% (1.46)% 227%
2.11 (0.88) 282
2.18 (1.60) 199
2.28 (1.77) 123
2.29 (1.91) 110
2.33(3) (1.74)(3) 23
2.14%(4) (1.47)%(4) 227%
2.13(4) (0.90)(4) 282
2.14(4) (1.56)(4) 199
2.14(4) (1.63)(4) 123
2.10(4) (1.73)(4) 110
2.14(3)(4) (1.55)(3)(4) 23
- --------
(1)Calculated based upon average shares outstanding
(2)Total return is not annualized and does not reflect sales load. Total return
does include expense reimbursements and expense reductions.
(3)Annualized
(4)Net of the following expense reimbursements (based on average net assets):
09/30/00 09/30/01 09/30/02 09/30/03 09/30/04 03/31/05(3)
-------- -------- -------- -------- -------- -----------
New Century Class C+ 0.05% 0.06% 0.27% 0.66% 0.48% 0.75%
(5)Unaudited
+ Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
See Notes to Financial Statements
19
SunAmerica Equity Funds
FINANCIAL HIGHLIGHTS -- (continued)
GROWTH AND INCOME FUND
----------------------
Net gain
(loss) on
Net investments Distri- Net Net
Asset Net (both Dividends butions Asset Assets
Value investment realized Total from from net from Total Value end of
beginning income and investment investment capital Distri- end of Total period
Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's)
- -------------------- --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- --------
Class A
- -
09/30/00 $16.23 $(0.08) $ 4.51 $ 4.43 $ -- $(0.66) $(0.66) $20.00 27.64% $127,168
09/30/01 20.00 (0.03) (7.43) (7.46) -- (1.43) (1.43) 11.11 (39.45) 75,795
09/30/02 11.11 -- (2.24) (2.24) -- -- -- 8.87 (20.16) 71,482
09/30/03 8.87 0.01 1.31 1.32 -- -- -- 10.19 14.88 70,826
09/30/04 10.19 0.00 1.19 1.19 -- -- -- 11.38 11.68 69,069
10/01/04-03/31/05(7) 11.38 0.08 0.82 0.90 (0.04) -- (0.04) 12.24 7.91 68,835
Class B
- -
09/30/00 $15.90 $(0.20) $ 4.40 $ 4.20 $ -- $(0.66) $(0.66) $19.44 26.74% $176,395
09/30/01 19.44 (0.12) (7.19) (7.31) -- (1.43) (1.43) 10.70 (39.85) 99,012
09/30/02 10.70 (0.07) (2.14) (2.21) -- -- -- 8.49 (20.65) 81,686
09/30/03 8.49 (0.06) 1.26 1.20 -- -- -- 9.69 14.13 66,378
09/30/04 9.69 (0.07) 1.13 1.06 -- -- -- 10.75 10.94 54,199
10/01/04-03/31/05(7) 10.75 0.04 0.77 0.81 -- -- -- 11.56 7.53 49,679
Class C+
- -
09/30/00 $15.89 $(0.20) $ 4.39 $ 4.19 $ -- $(0.66) $(0.66) $19.42 26.78% $ 39,986
09/30/01 19.42 (0.13) (7.18) (7.31) -- (1.43) (1.43) 10.68 (39.89) 28,283
09/30/02 10.68 (0.07) (2.13) (2.20) -- -- -- 8.48 (20.60) 60,174
09/30/03 8.48 (0.06) 1.25 1.19 -- -- -- 9.67 14.03 49,593
09/30/04 9.67 (0.07) 1.13 1.06 -- -- -- 10.73 10.96 43,993
10/01/04-03/31/05(7) 10.73 0.04 0.78 0.82 -- -- -- 11.55 7.64 41,852
Class I
- -
11/16/01-09/30/02(3) $12.29 $ 0.02 $(3.43) $(3.41) $ -- $ -- $ -- $ 8.88 (27.75)% $ 9,877
09/30/03 8.88 0.02 1.31 1.33 -- -- -- 10.21 14.98 12,899
09/30/04 10.21 0.02 1.18 1.20 -- -- -- 11.41 11.75 769
10/01/04-03/31/05(7) 11.41 0.09 0.82 0.91 (0.05) -- (0.05) 12.27 8.00 886
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets net assets Turnover
- ---------- ------------- ---------
1.44% (0.43)% 61%
1.45 (0.21) 126
1.50(6) (0.01)(6) 118
1.50 0.06 123
1.50 0.01 139
1.53(4) 1.26(4) 33
2.07% (1.07)% 61%
2.09 (0.85) 126
2.13(6) (0.66)(6) 118
2.16 (0.59) 123
2.17 (0.67) 139
2.19(4) 0.61(4) 33
2.10%(5) (1.10)%(5) 61%
2.13(5) (0.88)(5) 126
2.17(5)(6) (0.68)(5)(6) 118
2.16(5) (0.60)(5) 123
2.14(5) (0.64)(5) 139
2.17(4)(5) 0.63(4)(5) 33
1.32%(4)(5)(6) 0.21%(4)(5)(6) 118%
1.32(5) 0.23(5) 123
1.32(5) 0.19(5) 139
1.32(4)(5) 1.43(4)(5) 33
- --------
(1)Calculated based upon average shares outstanding
(2)Total return is not annualized and does not reflect sales load. Total return
does include expense reimbursements and expense reductions.
(3)Commencement of sale of respective class of shares
(4)Annualized
(5)Net of the following expense reimbursements (based on average net assets):
09/30/00 09/30/01 09/30/02(6) 09/30/03 09/30/04 03/31/05(4)
-------- -------- ----------- -------- -------- -----------
Growth and Income Class C+ 0.01% 0.00% -- % -- % -- % -- %
Growth and Income Class I. -- -- 0.12(4) 0.37 0.14 1.18
(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 0.02%
(7)Unaudited
+ Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
See Notes to Financial Statements
20
SunAmerica Equity Funds
FINANCIAL HIGHLIGHTS -- (continued)
BALANCED ASSETS FUND
--------------------
Net gain
(loss) on
Net investments Distri- Net Net
Asset Net (both Dividends butions Asset Assets
Value investment realized Total from from net from Total Value end of
beginning income and investment investment capital Distri- end of Total period
Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's)
- ----------------------- --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- --------
Class A
- -
09/30/00 $20.12 $0.21 $ 2.83 $ 3.04 $(0.22) $(1.98) $(2.20) $20.96 15.69% $319,598
09/30/01 20.96 0.22 (5.73) (5.51) (0.21) (2.00) (2.21) 13.24 (28.35) 229,609
09/30/02(7) 13.24 0.19 (1.45) (1.26) (0.19) -- (0.19) 11.79 (9.65) 183,652
09/30/03 11.79 0.10 0.68 0.78 (0.12) -- (0.12) 12.45 6.65 175,324
09/30/04 12.45 0.12 0.78 0.90 (0.16) -- (0.16) 13.19 7.27 160,269
10/01/04-03/31/05(8) 13.19 0.13 0.29 0.42 (0.15) -- (0.15) 13.46 3.17 150,847
Class B
- -
09/30/00 $20.09 $0.08 $ 2.82 $ 2.90 $(0.09) $(1.98) $(2.07) $20.92 14.98% $174,936
09/30/01 20.92 0.11 (5.70) (5.59) (0.13) (2.00) (2.13) 13.20 (28.80) 95,473
09/30/02(7) 13.20 0.10 (1.45) (1.35) (0.11) -- (0.11) 11.74 (10.29) 64,452
09/30/03 11.74 0.03 0.68 0.71 (0.04) -- (0.04) 12.41 6.07 47,496
09/30/04 12.41 0.03 0.77 0.80 (0.07) -- (0.07) 13.14 6.45 38,687
10/01/04-03/31/05(8) 13.14 0.08 0.29 0.37 (0.10) -- (0.10) 13.41 2.84 34,323
Class C+
- -
09/30/00 $20.11 $0.08 $ 2.82 $ 2.90 $(0.09) $(1.98) $(2.07) $20.94 14.95% $ 29,506
09/30/01 20.94 0.12 (5.72) (5.60) (0.13) (2.00) (2.13) 13.21 (28.83) 24,450
09/30/02(7) 13.21 0.09 (1.43) (1.34) (0.11) -- (0.11) 11.76 (10.21) 31,894
09/30/03 11.76 0.03 0.67 0.70 (0.04) -- (0.04) 12.42 5.97 25,784
09/30/04 12.42 0.03 0.78 0.81 (0.07) -- (0.07) 13.16 6.53 22,781
10/01/04-03/31/05(8) 13.16 0.09 0.28 0.37 (0.10) -- (0.10) 13.43 2.84 20,527
Class I
- -
11/16/01-09/30/02(3)(7) $14.29 $0.19 $(2.48) $(2.29) $(0.21) $ -- $(0.21) $11.79 (16.18)% $ 4,457
09/30/03 11.79 0.12 0.69 0.81 (0.14) -- (0.14) 12.46 6.89 4,574
09/30/04 12.46 0.16 0.77 0.93 (0.18) -- (0.18) 13.21 7.44 679
10/01/04-03/31/05(8) 13.21 0.14 0.30 0.44 (0.17) -- (0.17) 13.48 3.33 747
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets net assets turnover
- ---------- ------------- ---------
1.44% 1.01% 259%
1.44 1.32 362
1.47(6) 1.39(6) 485
1.49 0.86 409
1.50 0.89 181
1.58(4) 1.89(4) 80
2.06% 0.40% 259%
2.08 0.68 362
2.12(6) 0.73(6) 485
2.16 0.22 409
2.18 0.20 181
2.26(4) 1.22(4) 80
2.05%(5) 0.38%(5) 259%
2.05(5) 0.71(5) 362
2.13(5)(6) 0.72(5)(6) 485
2.15(5) 0.22(5) 409
2.18(5) 0.21(5) 181
2.23(4)(5) 1.25(4)(5) 80
1.33%(4)(5)(6) 1.52%(4)(5)(6) 485%
1.33(5) 1.02(5) 409
1.29(5) 1.10(5) 181
1.33(4)(5) 2.15(4)(5) 80
- --------
(1)Calculated based upon average shares outstanding
(2)Total return is not annualized and does not reflect sales load. Total return
does include expense reimbursements and expense reductions.
(3)Commencement of sale of respective class of shares
(4)Annualized
(5)Net of the following expense reimbursements (based on average net assets):
09/30/00 09/30/01 09/30/02(6) 09/30/03 09/30/04 03/31/05(4)
-------- -------- ----------- -------- -------- -----------
Balanced Assets Class C+ 0.07% 0.06% 0.00% -- % -- % -- %
Balanced Assets Class I. -- -- 0.19(4) 0.19 0.24 2.14
(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%
(7)As disclosed in the Notes to the Financial Statements, the Fund has adopted
the provisions of the AICPA Audit and Accounting Guide of Investment
Companies and began accreting discount and amortizing premium on debt
securities. The per share affect of this change for the period ended
September 30, 2002 on investment income and realized and unrealized gain and
losses was approximately $0.01 per share for all classes of shares. The
effect of this change was to decrease the ratio of net investment income to
average net assets by 0.05% for all classes of shares. Per share data and
ratios for periods prior to September 30, 2002 have not been restated to
reflect this change in accounting policy.
(8)Unaudited
+ Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
See Notes to Financial Statements
21
SunAmerica Equity Funds
FINANCIAL HIGHLIGHTS -- (continued)
INTERNATIONAL EQUITY FUND
-------------------------
Net gain
(loss) on
Net investments Distri- Net Net
Asset Net (both Dividends butions Asset Assets
Value investment realized Total from from net from Total Value end of
beginning income and investment investment capital Distri- end of Total period
Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's)
- ----------------------- --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- -------
Class A
- -
10/31/00 $14.26 $(0.11) $ 0.29 $ 0.18 $ -- $ -- $ -- $14.44 1.26% $49,085
10/31/01 14.44 (0.05) (4.40) (4.45) -- (1.11) (1.11) 8.88 (33.17) 24,408
11/01/01-09/30/02(8) 8.88 0.00 (1.88) (1.88) -- -- -- 7.00 (21.17) 30,896
09/30/03 7.00 0.03 1.70 1.73 -- -- -- 8.73 24.71 28,720
09/30/04 8.73 0.01 1.46 1.47 (0.00) -- (0.00) 10.20 16.88 32,221
10/01/04-03/31/05(9) 10.20 (0.06) 1.65 1.59 -- -- -- 11.79 15.59 38,068
Class B
- -
10/31/00 $13.98 $(0.22) $ 0.31 $ 0.09 $ -- $ -- $ -- $14.07 0.64% $48,901
10/31/01 14.07 (0.13) (4.26) (4.39) -- (1.11) (1.11) 8.57 (33.64) 26,747
11/01/01-09/30/02(8) 8.57 (0.06) (1.78) (1.84) -- -- -- 6.73 (21.47) 25,509
09/30/03 6.73 (0.03) 1.64 1.61 -- -- -- 8.34 23.92 24,799
09/30/04 8.34 (0.06) 1.41 1.35 -- -- -- 9.69 16.19 20,673
10/01/04-03/31/05(9) 9.69 (0.10) 1.57 1.47 -- -- -- 11.16 15.17 21,153
Class C+
- -
10/31/00 $13.99 $(0.21) $ 0.30 $ 0.09 $ -- $ -- $ -- $14.08 0.64% $20,367
10/31/01 14.08 (0.12) (4.28) (4.40) -- (1.11) (1.11) 8.57 (33.69) 12,949
11/01/01-09/30/02(6)(8) 8.57 (0.06) (1.79) (1.85) -- -- -- 6.72 (21.59) 15,067
09/30/03 6.72 (0.03) 1.64 1.61 -- -- -- 8.33 23.96 14,787
09/30/04 8.33 (0.06) 1.41 1.35 -- -- -- 9.68 16.21 15,798
10/01/04-03/31/05(9) 9.68 (0.10) 1.57 1.47 -- -- -- 11.15 15.19 17,111
Class I
- -
11/16/01-09/30/02(6)(8) $ 9.09 $ 0.01 $(2.08) $(2.07) $ -- $ -- $ -- $ 7.02 (22.77)% $15,802
09/30/03 7.02 0.03 1.72 1.75 -- -- -- 8.77 24.93 20,499
09/30/04 8.77 (0.04) 1.53 1.49 (0.01) -- (0.01) 10.25 16.96 4,233
10/01/04-03/31/05(9) 10.25 (0.06) 1.66 1.60 -- -- -- 11.85 15.61 6,124
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets(4) net assets(4) Turnover
- ------------- ------------- ---------
2.03%(5) (0.72)%(5) 89%
2.03 (0.42) 272
1.93(3)(5)(7) (0.06)(3)(5)(7) 230
1.90 0.35 209
1.90 0.06 202
1.90(3) (1.14)(3) 64
2.68%(5) (1.37)%(5) 89%
2.68 (1.14) 272
2.56(3)(5)(7) (0.72)(3)(5)(7) 230
2.55 (0.41) 209
2.55 (0.62) 202
2.55(3) (1.82)(3) 64
2.68%(5) (1.30)%(5) 89%
2.68 (1.13) 272
2.55(3)(5)(7) (0.72)(3)(5)(7) 230
2.55 (0.38) 209
2.55 (0.60) 202
2.55(3) (1.80)(3) 64
1.80%(3)(5)(7) 0.16%(3)(5)(7) 230%
1.80 0.43 209
1.80 (0.34) 202
1.80(3) (1.00)(3) 64
- --------
(1)Calculated based upon average shares outstanding
(2)Total return is not annualized and does not reflect sales load. Total return
does include expense reimbursements and expense reductions.
(3)Annualized
(4)Net of the following expense reimbursements (based on average net assets):
10/31/00 10/31/01 09/30/02(7) 09/30/03 09/30/04 03/31/05(3)
-------- -------- ----------- -------- -------- -----------
International Equity Class A. 0.04% 0.03% 0.08% 0.18% 0.10% 0.13%
International Equity Class B. 0.04 0.06 0.14 0.13 0.11 0.22
International Equity Class C+ 0.10 0.14 0.13 0.28 0.06 0.18
International Equity Class I. -- -- 0.11 0.16 0.12 0.20
(5)The ratio reflects an expense cap which is net of custody credits of (0.01)%
or waiver/reimbursement if applicable.
(6)Commencement of sale of respective class of shares
(7)Includes expense reimbursements (recoupments), but excludes expense
reductions. If the expense reductions had been applied, the ratio of
expenses to average net assets would have remained the same
(8)The Fund changed its fiscal year end from October 31 to September 30.
(9)Unaudited
+ Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
See Notes to Financial Statements
22
SunAmerica Equity Funds
FINANCIAL HIGHLIGHTS -- (continued)
VALUE FUND
----------
Net gain
(loss) on
Net investments Net
Asset Net (both Dividends Asset Net Assets
Value investment realized Total from from net Distributions Total Value end of
beginning income and investment investment from capital Distri- end of Total period
Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's)
- -------------------- --------- ---------- ----------- ---------- ---------- ------------- ------- ------ --------- ----------
Class A
- -
10/31/99 $14.99 $ 0.07 $ 1.76 $ 1.83 $ -- $ -- $ -- $16.82 12.21% $ 58,581
10/31/00 16.82 0.04 1.68 1.72 -- (0.77) (0.77) 17.77 10.73 52,062
10/31/01 17.77 0.11 (0.83) (0.72) -- (1.95) (1.95) 15.10 (4.42) 51,150
10/31/02 15.10 0.18 0.07 0.25 (0.09) (0.63) (0.72) 14.63 1.44 50,975
10/31/03 14.63 0.29 2.05 2.34 (0.18) (0.46) (0.64) 16.33 16.59 60,701
11/1/03-09/30/04(8) 16.33 0.32 1.86 2.18 (0.37) (0.45) (0.82) 17.69 13.79 91,769
10/01/04-03/31/05(9) 17.69 0.11 1.71 1.82 (0.29) (1.78) (2.07) 17.44 10.45 118,084
Class B
- -
10/31/99 $14.81 $(0.03) $ 1.73 $ 1.70 $ -- $ -- $ -- $16.51 11.48% $ 95,112
10/31/00 16.51 0.06 1.51 1.57 -- (0.77) (0.77) 17.31 10.00 79,261
10/31/01 17.31 0.00 (0.80) (0.80) -- (1.95) (1.95) 14.56 (5.06) 77,667
10/31/02 14.56 0.07 0.07 0.14 (0.01) (0.63) (0.64) 14.06 0.74 78,584
10/31/03 14.06 0.19 1.98 2.17 (0.08) (0.46) (0.54) 15.69 15.94 83,935
11/1/03-09/30/04(8) 15.69 0.24 1.75 1.99 (0.27) (0.45) (0.72) 16.96 13.09 68,492
10/01/04-03/31/05(9) 16.96 0.05 1.64 1.69 (0.18) (1.78) (1.96) 16.69 10.11 65,368
Class C+
- -
10/31/99 $14.81 $(0.03) $ 1.73 $ 1.70 $ -- $ -- $ -- $16.51 11.48% $ 12,976
10/31/00 16.51 0.07 1.49 1.56 -- (0.77) (0.77) 17.30 9.93 14,652
10/31/01 17.30 0.00 (0.79) (0.79) -- (1.95) (1.95) 14.56 (5.01) 17,805
10/31/02 14.56 0.07 0.07 0.14 (0.01) (0.63) (0.64) 14.06 0.74 18,504
10/31/03 14.06 0.18 1.99 2.17 (0.08) (0.46) (0.54) 15.69 15.94 23,208
11/1/03-09/30/04(8) 15.69 0.22 1.77 1.99 (0.27) (0.45) (0.72) 16.96 13.09 30,987
10/01/04-03/31/05(9) 16.96 0.05 1.64 1.69 (0.18) (1.78) (1.96) 16.69 10.11 37,957
Class I
- -
11/16/01-10/31/02(6) $15.93 $ 0.19 $(0.77) $(0.58) $(0.09) $(0.63) $(0.72) $14.63 (3.83)% $ 4,726
10/31/03 14.63 0.30 2.05 2.35 (0.19) (0.46) (0.65) 16.33 16.72 6,629
11/1/03-09/30/04(8) 16.33 0.37 1.83 2.20 (0.40) (0.45) (0.85) 17.68 13.91 4,746
10/01/04-03/31/05(9) 17.68 0.12 1.71 1.83 (0.30) (1.78) (2.08) 17.43 10.51 5,922
Class Z
- -
10/31/99 $15.04 $ 0.17 $ 1.76 $ 1.93 $ -- $ -- $ -- $16.97 12.83% $ 74
10/31/00 16.97 0.13 1.69 1.82 -- (0.77) (0.77) 18.02 11.25 353
10/31/01 18.02 0.21 (0.85) (0.64) -- (1.95) (1.95) 15.43 (3.86) 487
10/31/02 15.43 0.27 0.06 0.33 (0.16) (0.63) (0.79) 14.97 1.98 360
10/31/03 14.97 0.36 2.13 2.49 (0.25) (0.46) (0.71) 16.75 17.36 4,532
11/1/03-09/30/04(8) 16.75 0.41 1.92 2.33 (0.45) (0.45) (0.90) 18.18 14.37 7,370
10/01/04-03/31/05(9) 18.18 0.15 1.78 1.93 (0.39) (1.78) (2.17) 17.94 10.82 13,342
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets(4) net assets(4) Turnover
- ------------- ------------- ---------
1.77%(5) 0.43%(5) 118%
1.78(5) 0.25(5) 95
1.78(5) 0.68(5) 146
1.78 1.15 188
1.78(7) 1.94(7) 138
1.73(3) 2.12(3) 204
1.63(3) 1.23(3) 20
2.40%(5) (0.19)%(5) 118%
2.43(5) 0.39(5) 95
2.43(5) 0.03(5) 146
2.43 0.49 188
2.41(7) 1.32(7) 138
2.40(3) 1.58(3) 204
2.28(3) 0.59(3) 20
2.42%(5) (0.21)%(5) 118%
2.43(5) 0.40(5) 95
2.43(5) 0.02(5) 146
2.43 0.49 188
2.43(7) 1.28(7) 138
2.41(3) 1.48(3) 204
2.28(3) 0.58(3) 20
1.68%(3) 1.26%(3) 188%
1.68(7) 2.02(7) 138
1.67(3) 2.31(3) 204
1.53(3) 1.33(3) 20
1.21%(5) 0.98%(5) 118%
1.21(5) 0.72(5) 95
1.21(5) 1.26(5) 146
1.21 1.69 188
1.21(7) 2.33(7) 138
1.19(3) 2.58(3) 204
1.06(3) 1.78(3) 20
- --------
(1)Calculated based upon average shares outstanding
(2)Total return is not annualized and does not reflect sales load. Total return
does include expense reimbursements and expense reductions.
(3)Annualized
(4)Net of the following expense reimbursements (recoupments) (based on average
net assets):
10/31/99 10/31/00 10/31/01 10/31/02 10/31/03 09/30/04 03/31/05(3)
-------- -------- -------- -------- -------- -------- -----------
Value Class A.. 0.04% 0.09% 0.00% 0.01% (0.01)% 0.04% 0.16%
Value Class B.. 0.02 0.07 -- (0.02) (0.01) 0.02 0.22
Value Class C+. 0.13 0.11 0.05 0.03 0.02 0.06 0.15
Value Class I.. -- -- -- 0.19(3) -- 0.10 0.42
Value Class Z.. 23.27 10.14 6.55 5.52 1.00 0.16 0.23
(5)The ratio reflects an expense cap which is net of custody credits of (0.01)%
or waiver/reimbursements if applicable.
(6)Commencement of sale of respective class of shares
(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
10/31/03
--------
Value Class A. 0.01%
Value Class B. 0.01
Value Class C+ 0.01
Value Class I. 0.01
Value Class Z. 0.00
(8)The Fund changed its fiscal year end from October 31 to September 30.
(9)Unaudited
+ Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
See Notes to Financial Statements
23
SunAmerica Equity Funds
FINANCIAL HIGHLIGHTS -- (continued)
BIOTECH/HEALTH FUND
-------------------
Net gain
(loss) on
Net investments Distri- Net Net
Asset Net (both Dividends butions Asset Assets
Value investment realized Total from from net from Total Value end of
beginning income and investment investment capital Distri- end of Total period
Period Ended of period (loss)(1) unrealized) operations income gains butions period Return(2) (000's)
- -------------------- --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- -------
Class A
- -
06/14/00-10/31/00(3) $12.50 $(0.02) $ 3.48 $ 3.46 $-- $ -- $ -- $15.96 27.68% $30,489
10/31/01 15.96 (0.06) (4.32) (4.38) -- (0.55) (0.55) 11.03 (27.92) 27,865
10/31/02 11.03 (0.13) (3.28) (3.41) -- -- -- 7.62 (30.92) 16,092
10/31/03 7.62 (0.11) 2.30 2.19 -- -- -- 9.81 28.74 18,924
11/01/03-09/30/04(7) 9.81 (0.11) (0.67) (0.78) -- -- -- 9.03 (7.95) 15,839
10/01/04-03/31/05(8) 9.03 (0.06) (0.70) (0.76) -- -- -- 8.27 (8.42) 13,104
Class B
- -
06/14/00-10/31/00(3) $12.50 $(0.05) $ 3.47 $ 3.42 $-- $ -- $ -- $15.92 27.36% $23,457
10/31/01 15.92 (0.14) (4.31) (4.45) -- (0.55) (0.55) 10.92 (28.45) 25,552
10/31/02 10.92 (0.19) (3.23) (3.42) -- -- -- 7.50 (31.32) 15,757
10/31/03 7.50 (0.16) 2.25 2.09 -- -- -- 9.59 27.87 17,843
11/01/03-09/30/04(7) 9.59 (0.16) (0.66) (0.82) -- -- -- 8.77 (8.55) 14,417
10/01/04-03/31/05(8) 8.77 (0.09) (0.67) (0.76) -- -- -- 8.01 (8.67) 11,328
Class C+
- -
06/14/00-10/31/00(3) $12.50 $(0.05) $ 3.48 $ 3.43 $-- $ -- $ -- $15.93 27.44% $20,386
10/31/01 15.93 (0.14) (4.31) (4.45) -- (0.55) (0.55) 10.93 (28.43) 23,581
10/31/02 10.93 (0.19) (3.23) (3.42) -- -- -- 7.51 (31.29) 12,448
10/31/03 7.51 (0.16) 2.26 2.10 -- -- -- 9.61 27.96 12,662
11/01/03-09/30/04(7) 9.61 (0.16) (0.66) (0.82) -- -- -- 8.79 (8.53) 10,384
10/01/04-03/31/05(8) 8.79 (0.09) (0.67) (0.76) -- -- -- 8.03 (8.65) 7,855
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets(5) net assets(5) Turnover
- ------------- ------------- ---------
1.55%(4)(6) (0.28)%(4)(6) 112%
1.55(6) (0.50)(6) 333
1.55 (1.38) 340
1.55 (1.32) 236
1.55(4) (1.15)(4) 149
1.55(4) (1.42)(4) 66
2.20%(4)(6) (1.08)%(4)(6) 112%
2.20(6) (1.18)(6) 333
2.20 (2.03) 340
2.20 (1.97) 236
2.20(4) (1.80)(4) 149
2.20(4) (2.07)(4) 66
2.20%(4)(6) (1.07)%(4)(6) 112%
2.20(6) (1.17)(6) 333
2.20 (2.03) 340
2.20 (1.97) 236
2.20(4) (1.80)(4) 149
2.20(4) (2.07)(4) 66
- --------
(1)Calculated based upon average shares outstanding
(2)Total return is not annualized and does not reflect sales load. Total return
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):
10/31/00(4) 10/31/01 10/31/02 10/31/03 09/30/04 03/31/05(4)
----------- -------- -------- -------- -------- -----------
Biotech/Health Class A. 0.49% 0.19% 0.20% 0.23% 0.28% 0.34%
Biotech/Health Class B. 0.96 0.21 0.20 0.26 0.26 0.38
Biotech/Health Class C+ 1.09 0.20 0.21 0.33 0.26 0.40
(6)The ratio reflects an expense cap which is net of custody credits of less
than (0.01)%
(7)The Fund changed its fiscal year end from October 31 to September 30.
(8)Unaudited
+ Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
See Notes to Financial Statements
24
SunAmerica Equity Funds
FINANCIAL HIGHLIGHTS -- (continued)
TAX MANAGED EQUITY FUND
-----------------------
Net Gain
(Loss) on
Net investments Distri- Net Net
Asset Net (both Dividends butions Asset Assets
Value investment realized Total from from net from Total Value end of
beginning income and investment investment capital Distri- end of Total period
Period Ended of period (Loss)(1) unrealized) operations income gains butions period Return(2) (000's)
- -------------------- --------- ---------- ----------- ---------- ---------- ------- ------- ------ --------- -------
Class A
- -
03/01/99-10/31/99(3) $12.50 $ 0.00 $ 1.15 $ 1.15 $ -- $-- $ -- $13.65 9.20% $25,067
10/31/00 13.65 (0.02) 0.91 0.89 -- -- -- 14.54 6.52 38,802
10/31/01 14.54 0.00 (3.50) (3.50) -- -- -- 11.04 (24.07) 28,739
10/31/02 11.04 0.01 (2.05) (2.04) -- -- -- 9.00 (18.48) 16,587
10/31/03 9.00 0.03 1.46 1.49 -- -- -- 10.49 16.56 14,877
11/01/03-09/30/04(7) 10.49 0.03 0.75 0.78 -- -- -- 11.27 7.44 13,562
10/01/04-03/31/05(8) 11.27 0.07 0.40 0.47 (0.06) -- (0.06) 11.68 4.17 12,531
Class B
- -
03/01/99-10/31/99(3) $12.50 $(0.06) $ 1.14 $ 1.08 $ -- $-- $ -- $13.58 8.64% $27,524
10/31/00 13.58 (0.11) 0.91 0.80 -- -- -- 14.38 5.89 47,972
10/31/01 14.38 (0.08) (3.45) (3.53) -- -- -- 10.85 (24.55) 40,677
10/31/02 10.85 (0.06) (2.00) (2.06) -- -- -- 8.79 (18.99) 25,703
10/31/03 8.79 (0.03) 1.41 1.38 -- -- -- 10.17 15.70 22,694
11/01/03-09/30/04(7) 10.17 (0.04) 0.73 0.69 -- -- -- 10.86 6.78 19,669
10/01/04-03/31/05(8) 10.86 0.03 0.39 0.42 -- -- -- 11.28 3.87 17,921
Class C+
- -
03/01/99-10/31/99(3) $12.50 $(0.06) $ 1.16 $ 1.10 $ -- $-- $ -- $13.60 8.80% $27,884
10/31/00 13.60 (0.11) 0.91 0.80 -- -- -- 14.40 5.88 51,348
10/31/01 14.40 (0.08) (3.46) (3.54) -- -- -- 10.86 (24.58) 43,610
10/31/02 10.86 (0.06) (2.00) (2.06) -- -- -- 8.80 (18.97) 26,430
10/31/03 8.80 (0.03) 1.42 1.39 -- -- -- 10.19 15.80 23,036
11/01/03-09/30/04(7) 10.19 (0.04) 0.73 0.69 -- -- -- 10.88 6.77 18,295
10/01/04-03/31/05(8) 10.88 0.03 0.39 0.42 -- -- -- 11.30 3.86 16,700
Ratio
of net
Ratio of investment
expenses income (loss)
to average to average Portfolio
net assets(5) net assets(5) Turnover
- ------------- ------------- ---------
1.45%(4)(6) (0.02)%(4)(6) 9%
1.45(6) (0.14)(6) 7
1.45(6) (0.03)(6) 19
1.45 0.09 16
1.45 0.35 13
1.45(4) 0.25(4) 20
1.45(4) 1.14(4) 10
2.10%(4)(6) (0.74)%(4)(6) 9%
2.10(6) (0.79)(6) 7
2.10(6) (0.68)(6) 19
2.10 (0.56) 16
2.10 (0.30) 13
2.10(4) (0.40)(4) 20
2.10(4) 0.50(4) 10
2.10%(4)(6) (0.75)%(4)(6) 9%
2.10(6) (0.79)(6) 7
2.10(6) (0.68)(6) 19
2.10 (0.56) 16
2.10 (0.30) 13
2.10(4) (0.40)(4) 20
2.10(4) 0.49(4) 10
- --------
(1)Calculated based upon average shares outstanding
(2)Total return is not annualized and does not reflect sales load. Total return
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):
10/31/99(4) 10/31/00 10/31/01 10/31/02 10/31/03 09/30/04 03/31/05(4)
----------- -------- -------- -------- -------- -------- -----------
Tax Managed Equity Class A. 1.07% 0.23% 0.15% 0.00% 0.26% 0.24% 0.32%
Tax Managed Equity Class B. 0.84 0.22 0.15 0.20 0.23 0.25 0.29
Tax Managed Equity Class C+ 0.83 0.22 0.14 0.21 0.23 0.24 0.28
(6)The ratio reflects an expense cap which is net of custody credits of less
than (0.01)%
(7)The Fund changed its fiscal year end from October 31 to September 30.
(8)Unaudited
+ Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
See Notes to Financial Statements
25
SunAmerica Blue Chip Growth Fund
PORTFOLIO PROFILE -- March 31, 2005 -- (unaudited)
Industry Allocation*
Pharmaceuticals................ 10.1%
Electronics.................... 9.6
Medical Products............... 9.3
Retail......................... 9.3
Financial Services............. 9.0
Computer Software.............. 6.4
Computers & Business Equipment. 5.6
Broadcasting & Media........... 5.0
Conglomerate................... 4.6
Food, Beverage & Tobacco....... 4.3
Telecommunications............. 4.1
Leisure & Tourism.............. 3.6
Household & Personal Products.. 3.4
Aerospace & Military Technology 2.8
Internet Content............... 1.9
Chemicals...................... 1.7
Insurance...................... 1.4
Energy Sources................. 1.2
Internet Software.............. 1.2
Manufacturing.................. 1.1
Transportation................. 1.1
Banks.......................... 1.0
Energy Services................ 1.0
Health Services................ 0.9
Apparel & Textiles............. 0.7
Repurchase Agreements.......... 0.5
-----
100.8%
=====
- --------
* Calculated as a percentage of net assets.
26
SunAmerica Blue Chip Growth Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2005 -- (unaudited)
Value
Security Description Shares (Note 3)
-----------------------------------------------------------
COMMON STOCK -- 100.3%
Aerospace & Military Technology -- 2.8%
General Dynamics Corp................. 11,500 $ 1,231,075
United Technologies Corp.............. 13,100 1,331,746
-----------
2,562,821
-----------
Apparel & Textiles -- 0.7%
NIKE, Inc., Class B................... 7,800 649,818
-----------
Banks -- 1.0%
Bank of America Corp.................. 21,000 926,100
-----------
Broadcasting & Media -- 5.0%
News Corp., Class A................... 110,000 1,861,200
Time Warner, Inc...................... 105,700 1,855,035
Viacom, Inc., Class B................. 25,000 870,750
-----------
4,586,985
-----------
Chemicals -- 1.7%
Dow Chemical Co....................... 31,000 1,545,350
-----------
Computer Software -- 6.4%
Adobe Systems, Inc.................... 19,100 1,282,947
Electronic Arts, Inc.................. 10,000 517,800
Microsoft Corp........................ 131,400 3,175,938
Oracle Corp........................... 70,000 873,600
-----------
5,850,285
-----------
Computers & Business Equipment -- 5.6%
Dell, Inc............................. 49,900 1,917,158
International Business Machines Corp.. 22,900 2,092,602
Seagate Technology.................... 55,000 1,075,250
-----------
5,085,010
-----------
Conglomerate -- 4.6%
Dover Corp............................ 25,000 944,750
General Electric Co................... 50,100 1,806,606
Tyco International, Ltd............... 41,200 1,392,560
-----------
4,143,916
-----------
Electronics -- 9.6%
AMETEK, Inc........................... 30,000 1,207,500
Applied Materials, Inc................ 56,400 916,500
Intel Corp............................ 104,004 2,416,013
L-3 Communications Holdings, Inc...... 15,000 1,065,300
Lam Research Corp..................... 40,000 1,154,400
Marvell Technology Group, Ltd......... 20,000 766,800
Texas Instruments, Inc................ 48,800 1,243,912
-----------
8,770,425
-----------
Energy Services -- 1.0%
Transocean, Inc....................... 18,000 926,280
-----------
Energy Sources -- 1.2%
ChevronTexaco Corp.................... 19,200 1,119,552
-----------
Financial Services -- 9.0%
American Express Co................... 26,300 1,351,031
Capital One Financial Corp............ 29,900 2,235,623
Citigroup, Inc........................ 20,000 898,800
Goldman Sachs Group, Inc.............. 10,500 1,154,895
Merrill Lynch & Co., Inc.............. 30,000 1,698,000
Morgan Stanley........................ 15,250 873,062
-----------
8,211,411
-----------
Value
Security Description Shares (Note 3)
---------------------------------------------------------
Food, Beverage & Tobacco -- 4.3%
Coca-Cola Co....................... 50,000 $ 2,083,500
PepsiCo, Inc....................... 35,100 1,861,353
-----------
3,944,853
-----------
Health Services -- 0.9%
PacifiCare Health Systems, Inc..... 15,000 853,800
-----------
Household & Personal Products -- 3.4%
Colgate-Palmolive Co............... 17,000 886,890
Procter & Gamble Co................ 40,800 2,162,400
-----------
3,049,290
-----------
Insurance -- 1.4%
WellPoint, Inc..................... 10,000 1,253,500
-----------
Internet Content -- 1.9%
eBay, Inc.......................... 45,400 1,691,604
-----------
Internet Software -- 1.2%
Symantec Corp...................... 50,000 1,066,500
-----------
Leisure & Tourism -- 3.6%
Carnival Corp...................... 38,600 1,999,866
Hilton Hotels Corp................. 55,000 1,229,250
-----------
3,229,116
-----------
Manufacturing -- 1.1%
ITT Industries, Inc................ 11,000 992,640
-----------
Medical Products -- 9.3%
Becton Dickinson & Co.............. 16,300 952,246
Genzyme Corp.+..................... 25,000 1,431,000
Johnson & Johnson.................. 52,700 3,539,332
Medtronic, Inc..................... 12,500 636,875
St. Jude Medical, Inc.............. 25,800 928,800
Zimmer Holdings, Inc............... 12,000 933,720
-----------
8,421,973
-----------
Pharmaceuticals -- 10.1%
Abbott Laboratories................ 33,000 1,538,460
Amgen, Inc......................... 29,100 1,693,911
Cardinal Health, Inc............... 17,000 948,600
Gilead Sciences, Inc............... 45,000 1,611,000
Pfizer, Inc........................ 130,545 3,429,417
-----------
9,221,388
-----------
Retail -- 9.3%
Bed Bath & Beyond, Inc............. 34,000 1,242,360
Home Depot, Inc.................... 35,000 1,338,400
Target Corp........................ 25,000 1,250,500
Wal-Mart Stores, Inc............... 49,000 2,455,390
Walgreen Co........................ 25,000 1,110,500
Williams-Sonoma, Inc............... 30,000 1,102,500
-----------
8,499,650
-----------
Telecommunications -- 4.1%
Cisco Systems, Inc................. 84,500 1,511,705
Motorola, Inc...................... 64,000 958,080
QUALCOMM, Inc...................... 34,350 1,258,928
-----------
3,728,713
-----------
27
SunAmerica Blue Chip Growth Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2005 -- (unaudited) (continued)
Shares/
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------------------
COMMON STOCK (continued)
Transportation -- 1.1%
United Parcel Service, Inc., Class B......... 13,600 $ 989,264
-----------
Total Long-Term Investment Securities -- 100.3%
(cost $88,629,434).......................... 91,320,244
-----------
REPURCHASE AGREEMENTS -- 0.5%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)
(cost $451,000)............................. $451,000 451,000
-----------
TOTAL INVESTMENTS --
(cost $89,080,434)(2)....................... 100.8% 91,771,244
Liabilities in excess of other assets.......... (0.8) (763,157)
-------- -----------
NET ASSETS -- 100.0% $91,008,087
======== ===========
- --------
+ Non-income producing securities
(1)See Note 3 for details of Joint Repurchase Agreement
(2)See Note 6 for cost of investments on a tax basis
See Notes to Financial Statements
28
SunAmerica Growth Opportunities Fund
PORTFOLIO PROFILE -- March 31, 2005 -- (unaudited)
Industry Allocation*
Electronics.................... 12.1%
Pharmaceuticals................ 8.3
Financial Services............. 7.3
Machinery...................... 7.3
Repurchase Agreements.......... 7.3
Computer Software.............. 6.9
Transportation................. 5.8
Banks.......................... 5.1
Energy Services................ 4.7
Health Services................ 4.6
Conglomerate................... 4.3
Telecommunications............. 4.1
Medical Products............... 3.5
Internet Software.............. 3.1
Restaurants.................... 2.9
Aerospace & Military Technology 2.7
Manufacturing.................. 2.1
Internet Content............... 2.0
Metals & Mining................ 1.5
Business Services.............. 1.2
Communication Equipment........ 1.2
Retail......................... 1.0
Food, Beverage & Tobacco....... 0.5
----
99.5%
====
- --------
* Calculated as a percentage of net assets.
29
SunAmerica Growth Opportunities Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2005 -- (unaudited)
Value
Security Description Shares (Note 3)
-------------------------------------------------------------------
COMMON STOCK -- 92.2%
Aerospace & Military Technology -- 2.7%
Alliant Techsystems, Inc.+.................... 34,900 $ 2,493,605
-----------
Banks -- 5.1%
Franklin Bank Corp.+.......................... 83,500 1,440,375
Signature Bank+............................... 121,000 3,207,710
-----------
4,648,085
-----------
Business Services -- 1.2%
Valassis Communications, Inc.+................ 31,700 1,108,232
-----------
Communication Equipment -- 1.2%
Tekelec+...................................... 69,100 1,101,454
-----------
Computer Software -- 6.9%
BMC Software, Inc.+........................... 75,000 1,125,000
Cerner Corp.+................................. 10,000 525,100
Keane, Inc.+.................................. 69,500 905,585
Lawson Software, Inc.+........................ 278,300 1,641,970
Niku Corp.+................................... 50,000 902,500
Parametric Technology Corp.+.................. 208,600 1,166,074
-----------
6,266,229
-----------
Conglomerate -- 4.3%
Roper Industries, Inc......................... 59,700 3,910,350
-----------
Electronics -- 12.1%
AMETEK, Inc................................... 123,400 4,966,850
Cypress Semiconductor Corp.+.................. 101,400 1,277,640
Lam Research Corp.+........................... 126,900 3,662,334
PMC-Sierra, Inc.+............................. 90,000 792,000
Vitesse Semiconductor Corp.+.................. 100,000 268,000
-----------
10,966,824
-----------
Energy Services -- 4.7%
Global Industries, Ltd.+...................... 237,900 2,236,260
Todco, Class A+............................... 79,100 2,043,944
-----------
4,280,204
-----------
Financial Services -- 7.3%
CapitalSource, Inc.+.......................... 20,000 460,000
International Securities Exchange, Inc.+...... 2,000 52,000
MarketAxess Holdings, Inc.+................... 65,000 726,050
Nelnet, Inc., Class A+........................ 73,800 2,349,054
Piper Jaffray Cos.+........................... 83,500 3,055,265
-----------
6,642,369
-----------
Food, Beverage & Tobacco -- 0.5%
SunOpta, Inc.+................................ 83,500 425,850
-----------
Health Services -- 4.6%
LCA-Vision, Inc............................... 92,550 3,081,915
Pediatrix Medical Group, Inc.+................ 8,000 548,720
United Surgical Partners International, Inc.+. 12,000 549,240
-----------
4,179,875
-----------
Internet Content -- 2.0%
Blue Nile, Inc.+.............................. 18,200 503,230
CNET Networks, Inc.+.......................... 139,100 1,313,104
-----------
1,816,334
-----------
Value
Security Description Shares (Note 3)
------------------------------------------------------------------
Internet Software -- 3.1%
SupportSoft, Inc.+.......................... 147,500 $ 778,800
Symantec Corp.+............................. 95,000 2,026,350
-----------
2,805,150
-----------
Machinery -- 7.3%
IDEX Corp................................... 98,300 3,966,405
Nordson Corp................................ 72,200 2,658,404
-----------
6,624,809
-----------
Manufacturing -- 2.1%
HNI Corp.................................... 41,800 1,878,910
-----------
Medical Products -- 3.5%
Advanced Neuromodulation Systems, Inc.+..... 55,600 1,490,636
Animas Corp.+............................... 25,000 505,250
Cypress Bioscience, Inc.+................... 69,500 635,230
ID Biomedical Corp.+........................ 31,700 483,742
Vnus Medical Technologies, Inc.+............ 10,000 115,800
-----------
3,230,658
-----------
Metals & Mining -- 1.5%
Worthington Industries, Inc................. 69,500 1,339,960
-----------
Pharmaceuticals -- 8.3%
BioMarin Pharmaceutical, Inc.+.............. 31,700 163,255
Integra Lifesciences Holdings Corp.+........ 115,400 4,064,388
Medicines Co.+.............................. 69,500 1,574,870
Onyx Pharmaceuticals, Inc.+................. 21,100 661,485
Par Pharmaceutical Cos., Inc.+.............. 31,700 1,060,048
-----------
7,524,046
-----------
Restaurants -- 2.9%
Applebees International, Inc................ 83,500 2,301,260
Texas Roadhouse, Inc., Class A+............. 10,600 297,648
-----------
2,598,908
-----------
Retail -- 1.0%
Finish Line, Inc., Class A.................. 40,000 926,000
-----------
Telecommunications -- 4.1%
Alvarion, Ltd.+............................. 139,100 1,333,969
Jamdat Mobile, Inc.+........................ 400 6,896
SafeNet, Inc.+.............................. 80,000 2,344,800
-----------
3,685,665
-----------
Transportation -- 5.8%
C.H. Robinson Worldwide, Inc................ 41,800 2,153,954
Hornbeck Offshore Services, Inc.+........... 122,900 3,079,874
-----------
5,233,828
-----------
Total Long-Term Investment Securities -- 92.2%
(cost $76,449,406)......................... 83,687,345
-----------
30
SunAmerica Growth Opportunities Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2005 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 3)
--------------------------------------------------------
REPURCHASE AGREEMENTS -- 7.3%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1). $ 622,000 $ 622,000
UBS Securities, LLC
Joint Repurchase Agreement(1). 6,000,000 6,000,000
-----------
Total Repurchase Agreements
(cost $6,622,000)............. 6,622,000
-----------
TOTAL INVESTMENTS --
(cost $83,071,406)(2)......... 99.5% 90,309,345
Other assets less liabilities.... 0.5 438,368
---------- -----------
NET ASSETS -- 100.0% $90,747,713
========== ===========
- --------
+ Non-income producing securities
(1)See Note 3 for details of Joint Repurchase Agreement
(2)See Note 6 for cost of investments on a tax basis
See Notes to Financial Statements
31
SunAmerica New Century Fund
PORTFOLIO PROFILE -- March 31, 2005 -- (unaudited)
Industry Allocation*
Electronics.................... 16.6%
Repurchase Agreements.......... 15.6
Aerospace & Military Technology 7.4
Financial Services............. 7.3
Telecommunications............. 6.3
Banks.......................... 5.3
Business Services.............. 4.6
Medical Products............... 3.9
Conglomerate................... 3.8
Health Services................ 3.4
Internet Software.............. 3.4
Restaurants.................... 3.4
Energy Sources................. 2.3
Leisure & Tourism.............. 2.2
Manufacturing.................. 2.1
Retail......................... 2.1
Household & Personal Products.. 2.0
Machinery...................... 2.0
Transportation................. 1.9
Pharmaceuticals................ 1.3
Computer Software.............. 1.1
Energy Services................ 0.9
Broadcasting & Media........... 0.7
Forest Products................ 0.4
-----
100.0%
=====
- --------
* Calculated as a percentage of net assets.
32
SunAmerica New Century Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2005 -- (unaudited)
Value
Security Description Shares (Note 3)
-----------------------------------------------------------
COMMON STOCK -- 84.4%
Aerospace & Military Technology -- 7.4%
Alliant Techsystems, Inc.+........... 51,900 $ 3,708,255
General Dynamics Corp................ 33,500 3,586,175
-----------
7,294,430
-----------
Banks -- 5.3%
Hibernia Corp., Class A.............. 104,800 3,354,648
Signature Bank+...................... 72,000 1,908,720
-----------
5,263,368
-----------
Broadcasting & Media -- 0.7%
Radio One, Inc., Class D+............ 44,500 656,375
-----------
Business Services -- 4.6%
Fastenal Co.......................... 53,000 2,931,430
Stericycle, Inc.+.................... 37,700 1,666,340
-----------
4,597,770
-----------
Computer Software -- 1.1%
Siebel Systems, Inc.+................ 118,600 1,082,818
-----------
Conglomerate -- 3.8%
Dover Corp........................... 56,000 2,116,240
Roper Industries, Inc................ 25,000 1,637,500
-----------
3,753,740
-----------
Electronics -- 16.6%
Analog Devices, Inc.................. 45,800 1,655,212
Flextronics International, Ltd.+..... 158,500 1,908,340
L-3 Communications Holdings, Inc..... 15,000 1,065,300
Lam Research Corp.+.................. 94,900 2,738,814
Marvell Technology Group, Ltd.+...... 101,500 3,891,510
National Semiconductor Corp.......... 53,300 1,098,513
Rockwell Automation, Inc............. 72,400 4,100,736
-----------
16,458,425
-----------
Energy Services -- 0.9%
Patterson-UTI Energy, Inc............ 34,800 870,696
-----------
Energy Sources -- 2.3%
EOG Resources, Inc................... 47,600 2,320,024
-----------
Financial Services -- 7.3%
Ameritrade Holding Corp.+............ 175,800 1,794,918
CapitalSource, Inc.+................. 20,000 460,000
Knight Trading Group, Inc., Class A+. 77,900 750,956
Nelnet, Inc., Class A+............... 48,600 1,546,938
Providian Financial Corp.+........... 154,300 2,647,788
-----------
7,200,600
-----------
Forest Products -- 0.4%
Smurfit-Stone Container Corp.+....... 28,800 445,536
-----------
Health Services -- 3.4%
Centene Corp.+....................... 111,200 3,334,888
-----------
Household & Personal Products -- 2.0%
Yankee Candle Co., Inc.+............. 61,900 1,962,230
-----------
Internet Software -- 3.4%
Symantec Corp.+...................... 160,000 3,412,800
-----------
Shares/
Principal Value
Security Description Amount (Note 3)
--------------------------------------------------------------------
Leisure & Tourism -- 2.2%
Royal Caribbean Cruises, Ltd.............. 20,000 $ 893,800
Starwood Hotels & Resorts Worldwide, Inc.. 21,100 1,266,633
-----------
2,160,433
-----------
Machinery -- 2.0%
Nordson Corp.............................. 52,700 1,940,414
-----------
Manufacturing -- 2.1%
ITT Industries, Inc....................... 23,200 2,093,568
-----------
Medical Products -- 3.9%
Millennium Pharmaceuticals, Inc.+......... 94,600 796,532
Neurocrine Biosciences, Inc.+............. 12,800 487,168
St. Jude Medical, Inc.+................... 72,200 2,599,200
-----------
3,882,900
-----------
Pharmaceuticals -- 1.3%
Gilead Sciences, Inc.+.................... 37,500 1,342,500
-----------
Restaurants -- 3.4%
Applebees International, Inc.............. 64,400 1,774,864
Ruby Tuesday, Inc......................... 65,800 1,598,282
-----------
3,373,146
-----------
Retail -- 2.1%
Williams-Sonoma, Inc.+.................... 57,100 2,098,425
-----------
Telecommunications -- 6.3%
Andrew Corp.+............................. 144,000 1,686,240
NII Holdings, Inc.+....................... 79,200 4,554,000
-----------
6,240,240
-----------
Transportation -- 1.9%
C.H. Robinson Worldwide, Inc.............. 36,100 1,860,233
-----------
Total Long-Term Investment Securities -- 84.4%
(cost $71,896,528)....................... 83,645,559
-----------
REPURCHASE AGREEMENTS -- 15.6%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)............ $ 489,000 489,000
UBS Securities, LLC
Joint Repurchase Agreement(1)............ 15,000,000 15,000,000
-----------
Total Repurchase Agreements
(cost $15,489,000)....................... 15,489,000
-----------
TOTAL INVESTMENTS --
(cost $87,385,528)(2).................... 100.0% 99,134,559
Other assets less liabilities............... 0.0 14,730
----------- -----------
NET ASSETS -- 100.0% $99,149,289
=========== ===========
- --------
+ Non-income producing securities
(1)See Note 3 for details of Joint Repurchase Agreement
(2)See Note 6 for cost of investments on a tax basis
See Notes to Financial Statements
33
SunAmerica Growth and Income Fund
PORTFOLIO PROFILE -- March 31, 2005 -- (unaudited)
Industry Allocation*
Financial Services............. 10.3%
Energy Sources................. 8.6
Banks.......................... 7.6
Food, Beverage & Tobacco....... 7.6
Conglomerate................... 7.4
Broadcasting & Media........... 6.2
Retail......................... 5.7
Aerospace & Military Technology 5.5
Medical Products............... 5.3
Computers & Business Equipment. 4.9
Insurance...................... 4.7
Computer Software.............. 4.4
Electronics.................... 4.4
Pharmaceuticals................ 3.8
Telecommunications............. 2.9
Household & Personal Products.. 2.1
Chemicals...................... 2.0
Leisure & Tourism.............. 2.0
Restaurants.................... 2.0
Manufacturing.................. 1.7
Repurchase Agreements.......... 1.0
-----
100.1%
=====
- --------
* Calculated as a percentage of net assets.
34
SunAmerica Growth and Income Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2005 -- (unaudited)
Value
Security Description Shares (Note 3)
------------------------------------------------------------
COMMON STOCK -- 99.1%
Aerospace & Military Technology -- 5.5%
Alliant Techsystems, Inc.............. 45,000 $ 3,215,250
General Dynamics Corp................. 25,000 2,676,250
United Technologies Corp.............. 30,000 3,049,800
------------
8,941,300
------------
Banks -- 7.6%
Bank of America Corp.................. 104,400 4,604,040
Mellon Financial Corp................. 90,300 2,577,162
U.S. Bancorp.......................... 93,500 2,694,670
Wells Fargo & Co...................... 39,500 2,362,100
------------
12,237,972
------------
Broadcasting & Media -- 6.2%
Comcast Corp., Class A................ 81,500 2,753,070
News Corp., Class A................... 204,000 3,451,680
Time Warner, Inc...................... 213,500 3,746,925
------------
9,951,675
------------
Chemicals -- 2.0%
du Pont (E.I.) de Nemours & Co........ 63,000 3,228,120
------------
Computer Software -- 4.4%
Microsoft Corp........................ 201,400 4,867,838
Oracle Corp........................... 175,000 2,184,000
------------
7,051,838
------------
Computers & Business Equipment -- 4.9%
Dell, Inc............................. 43,200 1,659,744
Hewlett-Packard Co.................... 125,000 2,742,500
International Business Machines Corp.. 38,000 3,472,440
------------
7,874,684
------------
Conglomerate -- 7.4%
Dover Corp............................ 83,000 3,136,570
General Electric Co................... 160,000 5,769,600
Tyco International, Ltd............... 90,600 3,062,280
------------
11,968,450
------------
Electronics -- 4.4%
Applied Materials, Inc................ 180,000 2,925,000
Intel Corp............................ 100,000 2,323,000
L-3 Communications Holdings, Inc...... 25,000 1,775,500
------------
7,023,500
------------
Energy Sources -- 8.6%
ChevronTexaco Corp.................... 74,000 4,314,940
Exxon Mobil Corp...................... 112,200 6,687,120
Marathon Oil Corp..................... 60,000 2,815,200
------------
13,817,260
------------
Financial Services -- 10.3%
American Express Co................... 50,300 2,583,911
Capital One Financial Corp............ 34,700 2,594,519
Citigroup, Inc........................ 116,100 5,217,534
Goldman Sachs Group, Inc.............. 17,100 1,880,829
J.P. Morgan Chase & Co................ 61,800 2,138,280
Morgan Stanley........................ 38,800 2,221,300
------------
16,636,373
------------
Food, Beverage & Tobacco -- 7.6%
Altria Group, Inc..................... 43,400 2,837,926
Coca-Cola Co.......................... 85,000 3,541,950
Shares/
Principal Value
Security Description Amount (Note 3)
---------------------------------------------------------------
Food, Beverage & Tobacco (continued)
Diageo, PLC Sponsored ADR.......... 60,000 $ 3,414,000
General Mills, Inc................. 50,000 2,457,500
------------
12,251,376
------------
Household & Personal Products -- 2.1%
Procter & Gamble Co................ 64,600 3,423,800
------------
Insurance -- 4.7%
Allstate Corp...................... 50,000 2,703,000
Chubb Corp......................... 33,000 2,615,910
WellPoint, Inc..................... 18,000 2,256,300
------------
7,575,210
------------
Leisure & Tourism -- 2.0%
Royal Caribbean Cruises, Ltd....... 73,000 3,262,370
------------
Manufacturing -- 1.7%
ITT Industries, Inc................ 30,000 2,707,200
------------
Medical Products -- 5.3%
Becton Dickinson & Co.............. 48,000 2,804,160
Johnson & Johnson.................. 45,000 3,022,200
Medtronic, Inc..................... 55,000 2,802,250
------------
8,628,610
------------
Pharmaceuticals -- 3.8%
Amgen, Inc......................... 30,300 1,763,763
Pfizer, Inc........................ 164,750 4,327,983
------------
6,091,746
------------
Restaurants -- 2.0%
Wendy's International, Inc......... 83,000 3,240,320
------------
Retail -- 5.7%
Home Depot, Inc.................... 87,000 3,326,880
Limited Brands, Inc................ 105,000 2,551,500
Wal-Mart Stores, Inc............... 66,000 3,307,260
------------
9,185,640
------------
Telecommunications -- 2.9%
Cisco Systems, Inc................. 84,300 1,508,127
Verizon Communications, Inc........ 90,000 3,195,000
------------
4,703,127
------------
Total Long-Term Investment Securities -- 99.1%
(cost $147,430,970)............... 159,800,571
------------
REPURCHASE AGREEMENTS -- 1.0%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)
(cost $1,656,000)................. $1,656,000 1,656,000
------------
TOTAL INVESTMENTS --
(cost $149,086,970)(2)............ 100.1% 161,456,571
Liabilities in excess of other assets (0.1) (205,432)
---------- ------------
NET ASSETS -- 100.0% $161,251,139
========== ============
- --------
+ Non-income producing securities
(1) See Note 3 for details of Joint Repurchase Agreement
(2) See Note 6 for cost of investments on a tax basis
ADR --American Depository Receipt
See Notes to Financial Statements
35
SunAmerica Balanced Assets Fund
PORTFOLIO PROFILE -- March 31, 2005 -- (unaudited)
Industry Allocation*
U.S. Government Agencies....... 14.4%
Financial Services............. 12.3
Banks.......................... 5.9
Conglomerate................... 5.8
Telecommunications............. 4.5
Retail......................... 4.5
Broadcasting & Media........... 4.5
Energy Sources................. 4.1
Medical Products............... 3.9
Food, Beverage, & Tobacco...... 3.9
Electronics.................... 3.9
Pharmaceuticals................ 3.8
U.S. Government Obligations.... 2.9
Repurchase Agreements.......... 2.6
Computers & Business Equipment. 2.5
Computer Software.............. 2.2
Chemicals...................... 2.1
Aerospace & Military Technology 1.9
Leisure & Tourism.............. 1.8
Household & Personal Products.. 1.6
Foreign Government Agencies.... 1.4
Insurance...................... 1.4
Utilities...................... 1.3
Energy Services................ 1.3
Transportation................. 1.0
Forest Products................ 0.9
Health Services................ 0.8
Manufacturing.................. 0.7
Automotive..................... 0.6
Restaurant..................... 0.6
Internet Content............... 0.4
Metals & Mining................ 0.4
Apparel & Textiles............. 0.3
Business Services.............. 0.2
Housing & Household Durables... 0.1
Real Estate Companies.......... 0.1
Machinery...................... 0.0
-----
100.6%
=====
- --------
* Calculated as a percentage of net assets.
36
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2005 -- (unaudited)
Value
Security Description Shares (Note 3)
-----------------------------------------------------------
COMMON STOCK -- 64.5%
Aerospace & Military Technology -- 1.8%
General Dynamics Corp................. 16,300 $ 1,744,915
United Technologies Corp.............. 18,400 1,870,544
-----------
3,615,459
-----------
Apparel & Textiles -- 0.3%
NIKE, Inc., Class B................... 8,200 683,142
-----------
Banks -- 4.3%
Bank of America Corp.................. 79,400 3,501,540
North Fork Bancorp., Inc.............. 67,500 1,872,450
U.S. Bancorp.......................... 66,700 1,922,294
Wells Fargo & Co...................... 26,700 1,596,660
-----------
8,892,944
-----------
Broadcasting & Media -- 3.8%
Comcast Corp., Class A+............... 50,000 1,689,000
News Corp., Class A................... 150,000 2,538,000
Time Warner, Inc.+.................... 129,500 2,272,725
Viacom, Inc., Class B................. 40,000 1,393,200
-----------
7,892,925
-----------
Chemicals -- 2.0%
Dow Chemical Co....................... 51,000 2,542,350
du Pont (E.I.) de Nemours & Co........ 30,000 1,537,200
-----------
4,079,550
-----------
Computer Software -- 2.2%
Microsoft Corp........................ 140,200 3,388,634
Oracle Corp.+......................... 100,000 1,248,000
-----------
4,636,634
-----------
Computers & Business Equipment -- 2.5%
Dell, Inc.+........................... 40,700 1,563,694
International Business Machines Corp.. 30,200 2,759,676
Xerox Corp+........................... 50,000 757,500
-----------
5,080,870
-----------
Conglomerate -- 5.6%
Dover Corp............................ 50,000 1,889,500
General Electric Co................... 154,800 5,582,088
Roper Industries, Inc................. 35,000 2,292,500
Tyco International, Ltd............... 55,600 1,879,280
-----------
11,643,368
-----------
Electronics -- 3.9%
AMETEK, Inc........................... 40,000 1,610,000
Applied Materials, Inc.+.............. 77,200 1,254,500
Intel Corp............................ 76,500 1,777,095
L-3 Communications Holdings, Inc...... 25,000 1,775,500
Texas Instruments, Inc................ 61,200 1,559,988
-----------
7,977,083
-----------
Energy Services -- 1.3%
Schlumberger Ltd...................... 15,000 1,057,200
Transocean, Inc.+..................... 33,000 1,698,180
-----------
2,755,380
-----------
Value
Security Description Shares (Note 3)
---------------------------------------------------------
Energy Sources -- 3.4%
ChevronTexaco Corp................. 28,800 $ 1,679,328
ConocoPhillips..................... 10,000 1,078,400
Exxon Mobil Corp................... 71,900 4,285,240
-----------
7,042,968
-----------
Financial Services -- 7.6%
American Express Co................ 35,400 1,818,498
Capital One Financial Corp......... 39,400 2,945,938
Citigroup, Inc..................... 94,500 4,246,830
Goldman Sachs Group, Inc........... 15,100 1,660,849
J.P. Morgan Chase & Co............. 46,700 1,615,820
Merrill Lynch & Co., Inc........... 40,000 2,264,000
Morgan Stanley..................... 19,750 1,130,687
-----------
15,682,622
-----------
Food, Beverage & Tobacco -- 3.7%
Altria Group, Inc.................. 34,100 2,229,799
Coca-Cola Co....................... 48,000 2,000,160
Diageo, PLC Sponsored ADR.......... 25,000 1,422,500
PepsiCo, Inc....................... 39,200 2,078,776
-----------
7,731,235
-----------
Forest Products -- 0.7%
Weyerhaeuser Co.................... 20,000 1,370,000
-----------
Health Services -- 0.6%
PacifiCare Health Systems, Inc.+... 22,000 1,252,240
-----------
Insurance -- 0.9%
WellPoint, Inc.+................... 15,000 1,880,250
-----------
Household & Personal Products -- 1.6%
Colgate-Palmolive Co............... 25,000 1,304,250
Procter & Gamble Co................ 35,700 1,892,100
-----------
3,196,350
-----------
Internet Content -- 0.4%
eBay, Inc.+........................ 20,000 745,200
-----------
Leisure & Tourism -- 1.2%
Carnival Corp...................... 49,400 2,559,414
-----------
Manufacturing -- 0.7%
ITT Industries, Inc................ 17,000 1,534,080
-----------
Medical Products -- 3.9%
Becton Dickinson & Co.............. 23,700 1,384,554
Johnson & Johnson.................. 45,700 3,069,212
Medtronic, Inc..................... 14,000 713,300
St. Jude Medical, Inc.+............ 35,000 1,260,000
Zimmer Holdings, Inc.+............. 20,000 1,556,200
-----------
7,983,266
-----------
Pharmaceuticals -- 3.4%
Abbott Laboratories................ 35,000 1,631,700
Amgen, Inc.+....................... 29,200 1,699,732
Cardinal Health, Inc............... 13,000 725,400
Pfizer, Inc........................ 109,760 2,883,395
-----------
6,940,227
-----------
37
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2005 -- (unaudited) (continued)
Shares/
Principal Value
Security Description Amount (Note 3)
--------------------------------------------------------------
COMMON STOCK (continued)
Restaurants -- 0.6%
McDonald's Corp...................... 40,000 $ 1,245,600
------------
Retail -- 4.3%
Bed Bath & Beyond, Inc.+............. 35,000 1,278,900
Home Depot, Inc...................... 30,000 1,147,200
Target Corp.......................... 30,000 1,500,600
Wal-Mart Stores, Inc................. 72,800 3,648,008
Williams-Sonoma, Inc.+............... 35,000 1,286,250
------------
8,860,958
------------
Telecommunications -- 3.2%
BellSouth Corp....................... 50,000 1,314,500
Cisco Systems, Inc.+................. 69,600 1,245,144
Motorola, Inc........................ 80,100 1,199,097
QUALCOMM, Inc........................ 40,250 1,475,163
Verizon Communications, Inc.......... 37,600 1,334,800
------------
6,568,704
------------
Transportation -- 0.6%
United Parcel Service, Inc.,
Class B............................. 17,600 1,280,224
------------
Total Common Stock
(cost $126,802,782)................. 133,130,693
------------
PREFERRED STOCK -- 0.2%
Financial Services -- 0.2%
General Electric Capital Corp.
4.50%(8)............................ 14,000 315,000
Merrill Lynch & Co., Inc.
3.65%(1)............................ 9,003 223,905
------------
Total Preferred Stock
(cost $571,575)..................... 538,905
------------
CORPORATE BONDS -- 12.8%
Aerospace & Military Technology -- 0.1%
Raytheon Co.
6.40% due 12/15/18.................. $216,000 233,247
------------
Automotive -- 0.6%
Dana Corp.
7.00% due 03/01/29.................. 126,000 110,651
General Motors Corp.
7.20% due 01/15/11.................. 359,000 324,095
General Motors Corp.
8.38% due 07/15/33.................. 259,000 221,635
General Motors Corp.
8.80% due 03/01/21.................. 319,000 286,966
Hertz Corp.
4.70% due 10/02/06.................. 34,000 33,533
Hertz Corp.
6.90% due 08/15/14.................. 73,000 69,565
Hertz Corp.
7.63% due 06/01/12.................. 129,000 130,792
------------
1,177,237
------------
Banks -- 1.4%
American Express Centurion Bank
2.98% due 11/16/09(1)(5)............ 129,000 129,054
BankBoston Capital Trust IV
3.56% due 06/08/28(1)............... 222,000 216,854
Principal Value
Security Description Amount (Note 3)
-----------------------------------------------------------
Banks (continued)
Chemical Bank
6.13% due 11/01/08.................. $136,000 $ 142,840
Credit Suisse First Boston New York
6.50% due 05/01/08*................. 129,000 135,858
First Maryland Capital II
3.59% due 02/01/27(1)............... 196,000 191,162
HSBC Bank USA
5.88% due 11/01/34.................. 255,000 256,679
Key Bank NA
4.10% due 06/30/05.................. 238,000 238,641
Key Bank NA
7.00% due 02/01/11.................. 89,000 98,807
National City Bank
3.38% due 10/15/07.................. 260,000 254,973
PNC Funding Corp.
5.75% due 08/01/06.................. 240,000 245,308
Popular North America, Inc.
4.25% due 04/01/08.................. 225,000 223,491
Sovereign Bank
4.00% due 02/01/08.................. 216,000 213,419
Suntrust Bank
5.40% due 04/01/20.................. 150,000 149,833
US Bank NA
3.90% due 08/15/08.................. 38,000 37,364
Washington Mutual Bank FA
5.50% due 01/15/13.................. 238,000 242,879
Wells Fargo & Co.
3.11% due 09/15/09(1)............... 75,000 75,021
----------
2,852,183
----------
Broadcasting & Media -- 0.6%
Charter Communications Holdings, LLC
11.13% due 01/15/11................. 255,000 205,913
Cox Communications, Inc.
6.80% due 08/01/28.................. 82,000 84,622
Cox Communications, Inc.
7.63% due 06/15/25.................. 88,000 97,866
Cox Communications, Inc.
7.75% due 11/01/10.................. 376,000 417,607
Liberty Media Corp.
4.51% due 09/17/06(1)............... 223,000 225,961
Time Warner Entertainment Co. LP
8.38% due 03/15/23.................. 221,000 270,786
----------
1,302,755
----------
Business Services -- 0.2%
American Standard, Inc.
5.50% due 04/01/15*................. 90,000 90,342
PHH Corp.
6.00% due 03/01/08.................. 216,000 223,053
Seitel, Inc.
11.75% due 07/15/11................. 100,000 112,500
----------
425,895
----------
Chemicals -- 0.1%
du Pont (E.I.) de Nemours & Co.
4.13% due 04/30/10.................. 38,000 37,148
Rohm & Haas Co.
7.85% due 07/15/29.................. 156,000 201,761
----------
238,909
----------
38
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2005 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------------
CORPORATE BONDS (continued)
Conglomerate -- 0.1%
Tyco International Group
Participation Certificates Trust
4.44% due 06/15/07*...................... $210,000 $ 210,069
----------
Energy Services -- 0.0%
Hanover Compressor Co.
9.00% due 06/01/14....................... 75,000 80,250
----------
Energy Sources -- 0.6%
ConocoPhillips
7.00% due 03/30/29....................... 360,000 424,470
Enterprise Products Operating LP
5.00% due 03/01/15*...................... 81,000 75,933
Enterprise Products Operating LP
6.65% due 10/15/34....................... 126,000 128,464
Indiantown Cogeneration LP, Series A-9
9.26% due 12/15/10....................... 90,983 99,817
Kerr Mcgee Corp.
7.88% due 09/15/31....................... 252,000 284,349
Pemex Project Funding Master Trust
8.63% due 02/01/22....................... 153,000 173,846
----------
1,186,879
----------
Financial Services -- 4.4%
Capital One Financial Corp.
4.74% due 05/17/07....................... 132,000 132,719
Caterpillar Financial Services, Corp.
4.70% due 03/15/12....................... 150,000 147,790
Chase Manhattan Corp.
7.88% due 06/15/10....................... 126,000 143,338
Chukchansi Economic Development Authority
14.50% due 06/15/09*..................... 300,000 369,000
Citigroup, Inc.
5.00% due 09/15/14....................... 121,000 118,795
Citigroup Global Markets Holdings, Inc.
5.88% due 03/15/06....................... 276,000 281,054
Consolidated Communications Holdings
9.75% due 04/01/12*...................... 245,000 259,700
Countrywide Home Loans, Inc.
5.50% due 08/01/06....................... 324,000 329,410
Ford Motor Credit Co.
4.95% due 01/15/08....................... 216,000 207,161
Ford Motor Credit Co.
7.88% due 06/15/10....................... 169,000 172,056
General Electric Capital Corp.
2.80% due 01/15/07....................... 261,000 255,142
General Electric Capital Corp.,
Series A
5.38% due 03/15/07....................... 216,000 220,670
General Motors Acceptance Corp.
6.75% due 12/01/14....................... 105,000 90,699
HSBC Finance Corp.
6.38% due 10/15/11....................... 216,000 233,345
J.P. Morgan Chase & Co.
6.63% due 03/15/12....................... 238,000 260,206
J.P. Morgan Chase Capital XV
5.88% due 03/15/35....................... 92,000 88,845
Principal Value
Security Description Amount (Note 3)
---------------------------------------------------------------
Financial Services (continued)
John Deere Capital Corp.,
Series D
3.88% due 03/07/07..................... $ 341,000 $ 339,044
Merrill Lynch & Co., Inc.,
Series C
4.25% due 02/08/10..................... 169,000 164,507
Morgan Stanley
4.00% due 01/15/10..................... 16,000 15,403
Morgan Stanley Dean Witter Capital I
7.20% due 10/15/33(3).................. 2,500,000 2,766,717
NGC Corp. Capital Trust I,
Series B
8.32% due 06/01/27..................... 400,000 316,000
Pricoa Global Funding I
4.35% due 06/15/08*.................... 130,000 129,748
PX Escrow Corp.
9.63% due 02/01/06(2).................. 75,000 72,750
Residential Funding Mtg. Securities II,
Series 2004 - HI1 A3
3.05% due 07/25/16..................... 1,500,000 1,465,403
Sprint Capital Corp.
6.88% due 11/15/28..................... 177,000 189,495
TIAA Global Markets
4.13% due 11/15/07*.................... 177,000 176,020
Transamerica Finance Corp.
6.40% due 09/15/08..................... 75,000 80,151
----------
9,025,168
----------
Food, Beverage & Tobacco -- 0.1%
American Stores Co.
7.90% due 05/01/17..................... 68,000 77,594
Coca-Cola Enterprises, Inc.
8.50% due 02/01/22..................... 34,000 44,783
----------
122,377
----------
Forest Products -- 0.2%
Packaging Corp. of America
5.75% due 08/01/13..................... 203,000 201,001
Sealed Air Corp.
6.88% due 07/15/33*.................... 135,000 146,303
Weyerhaeuser Co.
6.13% due 03/15/07..................... 104,000 107,608
----------
454,912
----------
Health Services -- 0.2%
Community Health Systems, Inc.
6.50% due 12/15/12*.................... 125,000 121,875
Coventry Health Care, Inc.
6.13% due 01/15/15*.................... 202,000 201,748
Tenet Healthcare Corp.
6.50% due 06/01/12..................... 150,000 138,000
----------
461,623
----------
Household & Personal Products -- 0.0%
Revlon Consumer Products Corp.
8.63% due 02/01/08..................... 25,000 23,063
----------
Housing & Household Durables -- 0.1%
Maytag Corp.
5.00% due 05/15/15..................... 331,000 289,019
----------
39
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2005 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 3)
--------------------------------------------------------
CORPORATE BONDS (continued)
Insurance -- 0.5%
Allstate Corp.
7.20% due 12/01/09............... $238,000 $ 263,006
Americo Life, Inc.
7.88% due 05/01/13*.............. 134,000 140,664
Fidelity National Financial, Inc.
7.30% due 08/15/11............... 341,000 366,104
Liberty Mutual Group
6.50% due 03/15/35*.............. 72,000 69,251
MIC Financing Trust I
8.38% due 02/01/27*.............. 67,000 70,159
Ohio Casualty Corp.
7.30% due 06/15/14............... 201,000 214,840
----------
1,124,024
----------
Leisure & Tourism -- 0.6%
American Airlines, Inc.
6.82% due 11/23/12............... 200,000 185,907
Atlas Air, Inc.
7.63% due 07/12/16............... 499,529 404,814
Delta Airlines, Inc.
10.00% due 08/15/08.............. 75,000 33,000
Hilton Hotels Corp.
7.50% due 12/15/17............... 175,000 200,597
Hilton Hotels Corp.
7.95% due 04/15/07............... 261,000 278,588
Riviera Holdings Corp.
11.00% due 06/15/10.............. 55,000 60,775
----------
1,163,681
----------
Metals & Mining -- 0.1%
Newmont Mining Corp.
5.88% due 04/01/35............... 225,000 220,483
----------
Pharmaceuticals -- 0.4%
Merck & Co., Inc.
2.50% due 03/30/07............... 129,000 125,009
Pfizer, Inc.
2.50% due 03/15/07............... 276,000 268,448
Pfizer, Inc.
4.65% due 03/01/18............... 186,000 176,126
Schering-Plough Co.
6.75% due 12/01/33............... 34,000 38,040
Wyeth
6.95% due 03/15/11............... 123,000 134,889
----------
742,512
----------
Real Estate Companies -- 0.1%
EOP Operating LP
8.38% due 03/15/06............... 224,000 232,898
----------
Retail -- 0.2%
Federated Department Stores, Inc.
6.90% due 04/01/29............... 205,000 219,582
Wal-Mart Stores, Inc.
4.00% due 01/15/10............... 174,000 169,347
----------
388,929
----------
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------
Telecommunications -- 0.8%
Alltel Corp.
4.66% due 05/17/07................ $169,000 $ 170,028
American Cellular Corp.,
Series B
10.00% due 08/01/11............... 400,000 368,000
New Cingular Wireless Services
7.35% due 03/01/06................ 302,000 311,376
GTE Corp.
6.94% due 04/15/28................ 108,000 116,808
iPCS, Inc.
11.50% due 05/01/12............... 300,000 337,500
LCI International, Inc.
7.25% due 06/15/07................ 390,000 367,575
Verizon New York, Inc.,
Series B
7.38% due 04/01/32................ 56,000 62,847
-----------
1,734,134
-----------
Transportation -- 0.4%
Burlington Northern Santa Fe Corp.
8.13% due 04/15/20................ 188,000 237,322
Norfolk Southern Corp.
6.00% due 03/15/15................ 181,000 176,298
Norfolk Southern Corp.
9.00% due 03/01/21................ 195,000 262,660
Ryder System, Inc.
4.63% due 04/01/10................ 155,000 153,593
-----------
829,873
-----------
Utilities -- 1.0%
AES Corp.
7.75% due 03/01/14................ 150,000 154,875
Carolina Power & Light Co.
5.15% due 04/01/15................ 75,000 74,618
Duke Capital, LLC
8.00% due 10/01/19................ 216,000 256,255
El Paso Production Holding Co.
7.75% due 06/01/13................ 230,000 232,875
FirstEnergy Corp., Series C
7.38% due 11/15/31................ 126,000 142,720
FPL Group Capital, Inc.
4.09% due 02/16/07................ 385,000 384,054
Reliant Energy, Inc.
6.75% due 12/15/14................ 75,000 69,938
Reliant Energy, Inc.
9.50% due 07/15/13................ 125,000 135,937
Sempra Energy
4.62% due 05/17/07................ 169,000 169,670
Southern California Edison Co.
5.75% due 04/01/35................ 226,000 226,771
Virginia Electric & Power Co.,
Series A
5.75% due 03/31/06................ 179,000 182,000
-----------
2,029,713
-----------
Total Corporate Bonds
(cost $26,947,874)................ 26,549,833
-----------
40
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2005 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 3)
--------------------------------------------------------------
CONVERTIBLE BONDS -- 0.1%
Leisure & Tourism -- 0.0%
Six Flags, Inc.
4.50% due 05/15/15....................... $ 50,000 $ 46,313
--------
Utilities -- 0.1%
Calpine Corp.
4.75% due 11/15/23....................... 225,000 152,437
--------
Total Convertible Bonds
(cost $212,649).......................... 198,750
--------
FOREIGN BONDS & NOTES -- 1.7%
Banks -- 0.2%
HBOS Treasury Services, PLC
3.50% due 11/30/07*...................... 281,000 275,216
Skandinaviska Enskilda Banken AB
5.47% due 03/23/15*(4)................... 150,000 150,051
--------
425,267
--------
Broadcasting & Media -- 0.1%
Telenet Group Holding NV
11.50% due 06/15/14*(2).................. 300,000 226,875
--------
Conglomerate -- 0.1%
Tyco International Group SA
7.00% due 06/15/28....................... 93,000 105,571
--------
Energy Sources -- 0.1%
Nexen, Inc.
5.88% due 03/10/35....................... 92,000 87,996
Nexen, Inc.
7.88% due 03/15/32....................... 95,000 115,909
--------
203,905
--------
Financial Services -- 0.1%
Deutsche Telekom International Finance BV
8.75% due 06/15/30....................... 190,000 248,492
--------
Food, Beverage & Tobacco -- 0.1%
SABMiller, PLC
6.63% due 08/15/33*...................... 113,000 123,873
--------
Insurance -- 0.0%
Fairfax Financial Holdings, Ltd.
8.25% due 10/01/15....................... 50,000 48,500
--------
Machinery -- 0.0%
Atlas Copco AB
6.50% due 04/01/08*...................... 89,000 92,969
--------
Metals & Mining -- 0.3%
Barrick Gold Corp.
5.80% due 11/15/34....................... 96,000 96,864
Noranda, Inc.
6.00% due 10/15/15....................... 412,000 422,462
--------
519,326
--------
Telecommunications -- 0.5%
British Telecommunications, PLC
7.88% due 12/15/05....................... 38,000 39,078
Koninklijke (Royal) KPN NV
7.50% due 10/01/05....................... 163,000 166,060
Telecom Italia Capital SA
4.00% due 01/15/10*...................... 237,000 226,577
Principal Value
Security Description Amount (Note 3)
----------------------------------------------------------
Telecommunications (continued)
Telecom de Puerto Rico, Inc.
6.80% due 05/15/09................ $ 150,000 $ 158,056
TELUS Corp.
7.50% due 06/01/07................ 210,000 223,529
TELUS Corp.
8.00% due 06/01/11................ 238,000 275,613
----------
1,088,913
----------
Utilities -- 0.2%
Calpine Canada Energy Finance, ULC
8.50% due 05/01/08................ 75,000 53,250
Scottish Power, PLC
5.38% due 03/15/15................ 150,000 149,641
Scottish Power, PLC
5.81% due 03/15/25................ 183,000 181,372
----------
384,263
----------
Total Foreign Bonds & Notes
(cost $3,514,379)................. 3,467,954
----------
FOREIGN GOVERNMENT AGENCIES -- 1.4%
Republic of Argentina
3.01% due 08/03/05................ 230,000 193,430
Aries Vermogensverwaltung GmbH
9.60% due 10/25/14................ 250,000 300,175
Federal Republic of Brazil
8.00% due 04/15/14................ 245,109 242,658
Federal Republic of Brazil
11.00% due 08/17/40............... 290,000 322,770
Province of Quebec/Canada
7.50% due 09/15/29................ 246,000 317,008
Ministry Finance Russia, Series V
3.00% due 05/14/08................ 220,000 202,246
Republic of Panama
7.25% due 03/15/15................ 40,000 39,700
Republic of Turkey
9.00% due 06/30/11................ 190,000 208,050
Republic of Venezuela
8.50% due 10/08/14................ 100,000 98,500
Russian Federation
5.00% due 03/31/30(2)............. 480,000 491,760
Russian Federation
5.00% due 03/31/30*(2)............ 125,000 128,437
United Mexican States
7.50% due 04/08/33................ 144,000 152,640
United Mexican States,
Series A
6.75% due 09/27/34................ 112,000 109,312
----------
Total Foreign Government Agencies
(cost $2,760,593)................. 2,806,686
----------
U.S. GOVERNMENT OBLIGATIONS -- 2.9%
U.S Treasury Bonds -- 1.9%
5.38% due 02/15/31................. 3,656,000 3,984,612
----------
U.S. Treasury Notes -- 1.0%
2.00% due 08/31/05................. 705,000 702,026
2.25% due 02/15/07................. 16,000 15,564
2.50% due 10/31/06................. 47,000 46,141
3.13% due 01/31/07................. 216,000 213,553
41
SunAmerica Balanced Assets Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2005 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 3)
---------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS (continued)
U.S. Treasury Notes (continued)
3.50% due 02/15/10......................... $ 345,000 $ 334,852
3.63% due 01/15/10......................... 169,000 164,953
4.00% due 02/15/15......................... 442,000 424,665
4.25% due 08/15/14......................... 37,000 36,283
4.25% due 11/15/14......................... 12,000 11,752
------------
1,949,789
------------
Total U.S. Government Obligations
(cost $6,034,927)......................... 5,934,401
------------
U.S. GOVERNMENT AGENCIES -- 14.8%
Federal Home Loan Mortgage Corporation -- 5.4%
3.38% due 08/23/07......................... 293,000 288,034
3.88% due 03/03/08......................... 655,000 649,153
4.50% due 04/01/19......................... 3,302,526 3,239,715
5.00% due 05/01/34......................... 2,188,532 2,142,725
5.00% due 06/01/34......................... 1,837,097 1,798,646
5.50% due 07/01/34......................... 917,594 920,588
6.00% due 12/01/33......................... 1,653,246 1,694,250
7.00% due 04/01/32......................... 361,924 381,299
------------
11,114,410
------------
Federal National Mortgage Association -- 7.8%
3.41% due 08/30/07......................... 495,000 485,582
4.50% due 02/01/35......................... 748,808 710,973
5.00% due 07/01/18......................... 1,093,972 1,094,568
5.00% due 08/01/18......................... 1,084,359 1,084,950
5.00% due 07/01/33......................... 1,774,184 1,739,587
5.50% due 10/01/17......................... 365,036 372,367
5.50% due 11/01/17......................... 669,426 682,869
5.50% due 06/01/19......................... 639,315 651,968
5.50% due 12/01/33......................... 3,365,130 3,376,273
6.00% due April TBA........................ 365,000 372,984
6.00% due 06/01/17......................... 507,743 524,660
6.00% due 12/01/33......................... 1,264,579 1,292,928
6.00% due 05/01/34......................... 548,551 560,839
6.00% due 08/01/34......................... 860,151 879,740
6.50% due 09/01/10......................... 215,606 224,787
6.50% due 09/01/32......................... 1,646,912 1,712,284
6.50% due 04/01/34......................... 267,084 277,296
------------
16,044,655
------------
Government National Mortgage Association -- 1.2%
5.50% due 05/15/33......................... 866,004 874,890
5.50% due 09/15/33......................... 346,072 349,623
5.50% due 12/15/33......................... 930,093 939,638
7.50% due 01/15/32......................... 303,027 325,042
7.50% due 04/15/32......................... 1,256 1,346
------------
2,490,539
------------
Other -- 0.4%
Resolution Funding Corp. Strip
zero coupon due 04/15/09.................. 1,000,000 848,337
------------
Total U.S. Government Agencies
(cost $30,702,043)........................ 30,497,941
------------
Total Long-Term Investment Securities -- 98.4%
(cost $197,546,822)....................... 203,125,163
------------
Principal Value
Security Description Amount (Note 3)
-------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 2.6%
State Street Bank & Trust Co.
Joint Repurchase Agreement (6)............... $ 790,000 $ 790,000
Agreement with State Street Bank & Trust Co.,
bearing interest at 1.25%, dated 03/31/05,
to be repurchased 04/01/05 in the amount
of $4,582,159 and collateralized by
$3,330,000 of United States Treasury
Bonds, bearing interest at 8.75%, due
05/15/17 and having an approximate
aggregate value of $4,678,650@#.............. 4,582,000 4,582,000
------------
Total Repurchase Agreements
(cost $5,372,000)............................ 5,372,000
------------
TOTAL INVESTMENTS --
(cost $202,918,822)(7)....................... 101.0% 208,497,163
Liabilities in excess of other assets........... (1.0) (2,052,487)
---------- ------------
NET ASSETS -- 100.0% $206,444,676
========== ============
- --------
+ Non-income producing securities
* Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be sold in transactions exempt from
registration, normally to qualified institutional buyers. The fund has no
rights to demand registration of these securities. At March 31, 2005, the
aggregate value of these securities was $3,420,668 representing 1.7% of
net assets. Unless otherwise indicated, these securities are not
considered to be illiquid.
@ Collateral for securities sold short
# The security or a portion thereof represents collateral for TBAs.
(1) Floating rate security where the coupon rate fluctuates. The rate steps up
or down for each rate downgrade or upgrade. The rate reflected is as of
March 31, 2005.
(2) Security is a "Step-up" bond where the coupon rate increases or steps up
at a predetermined rate. Rate shown reflects the increased rate.
(3) Collateralized Mortgage Obligation
(4) Variable rate security -- the rate reflected is as of March 31, 2005;
maturity date reflects next reset date.
(5) Fair valued security; see Note 3
(6) See Note 3 for details of Joint Repurchase Agreement
(7) See Note 6 for cost of investments on a tax basis
(8) Security is a preferred stock where the coupon rate increases or steps up
at a predetermined rate. The rate reflected is as of March 31, 2005.
ADR --American Depository Receipt
TBA --Securities purchased on a forward commitment basis with an appropriate
principal amount and no definitive maturity date. The actual principal
and maturity date will be determined upon settlement date.
U.S. GOVERNMENT AGENCY SOLD SHORT -- (0.4%)
Federal Home Loan Mortgage Corporation
5.00% due April TBA
(proceeds $(729,961))............... (750,000) (733,594)
See Notes to Financial Statements
42
SunAmerica International Equity Fund
PORTFOLIO PROFILE -- March 31, 2005 -- (unaudited)
Industry Allocation*
Banks................ 21.5%
Energy Sources....... 7.4
Financial Services... 5.8
Broadcasting & Media. 4.7
Insurance............ 4.2
Pharmaceuticals...... 4.2
Manufacturing........ 4.1
Chemicals............ 4.1
Telecommunications... 4.0
Electronics.......... 3.9
Repurchase Agreements 3.7
Medical Products..... 3.6
Conglomerate......... 3.6
Transportation....... 3.6
Retail............... 3.2
Business Services.... 2.6
Electric Utilities... 2.4
Restaurants.......... 2.4
Apparel & Textiles... 2.0
Retail Stores........ 2.0
Computer Software.... 1.4
Utilities............ 1.4
Automotive........... 1.1
Electrical Equipment. 1.0
Machinery............ 0.9
Real Estate Companies 0.7
Metals & Mining...... 0.5
-----
100.0%
=====
- --------
* Calculated as a percentage of net assets.
Country Allocation*
Japan......... 21.5%
Germany....... 12.6
Switzerland... 7.8
United Kingdom 7.6
Belgium....... 7.5
Sweden........ 5.9
France........ 5.0
Italy......... 5.0
Norway........ 4.3
United States. 3.7
Spain......... 3.6
Greece........ 3.3
Australia..... 2.0
South Korea... 1.8
Hong Kong..... 1.3
Thailand...... 1.3
Singapore..... 1.0
Brazil........ 1.0
Portugal...... 0.9
Austria....... 0.8
Turkey........ 0.8
South Africa.. 0.7
Taiwan........ 0.6
-----
100.0%
=====
43
SunAmerica International Equity Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2005 -- (unaudited)
Value
Security Description Shares (Note 3)
-----------------------------------------------------------------
COMMON STOCK -- 95.3%
Australia -- 2.0%
Downer EDI, Ltd............................. 207,500 $ 834,914
Transurban Group............................ 145,660 794,202
-----------
1,629,116
-----------
Austria -- 0.8%
OMV AG...................................... 2,090 664,042
-----------
Belgium -- 7.5%
Belgacom SA+................................ 45,840 1,895,575
KBC Groupe SA............................... 19,600 1,652,757
Solvay SA................................... 21,910 2,611,559
-----------
6,159,891
-----------
France -- 5.0%
BNP Paribas SA.............................. 31,450 2,228,007
Sanofi-Aventis.............................. 22,480 1,895,611
-----------
4,123,618
-----------
Germany -- 12.6%
Allianz AG.................................. 27,470 3,487,939
HeidelbergCement AG......................... 18,320 1,152,501
Metro AG.................................... 48,710 2,614,743
RWE AG...................................... 32,500 1,965,354
SAP AG...................................... 7,250 1,168,288
-----------
10,388,825
-----------
Greece -- 3.3%
National Bank of Greece SA.................. 79,240 2,685,071
-----------
Hong Kong -- 1.3%
Cheung Kong Holdings, Ltd................... 62,400 552,039
Cosco Pacific, Ltd.......................... 230,000 499,843
Peregrine Investments Holdings, Ltd.+(1)(2). 91,000 0
-----------
1,051,882
-----------
Italy -- 5.0%
Capitalia SpA............................... 143,790 748,842
Saipem SpA.................................. 265,350 3,364,060
-----------
4,112,902
-----------
Japan -- 21.5%
Asahi Glass Co., Ltd........................ 132,000 1,391,029
Gigas K's Denki Corp........................ 40,788 1,051,747
JFE Holdings, Inc........................... 13,900 387,588
Joyo Bank, Ltd.............................. 234,000 1,259,144
Kaneka Corp................................. 69,000 761,876
Komatsu, Ltd................................ 87,000 653,940
Mitsui & Co., Ltd........................... 105,000 968,432
Mitsui O.S.K. Lines, Ltd.................... 243,000 1,561,382
Nidec Corp.................................. 13,700 1,705,633
Obayashi Corp............................... 156,000 961,634
Ono Pharmaceutical Co., Ltd................. 24,700 1,287,634
ORIX Corp................................... 7,500 956,122
San-in Godo Bank, Ltd....................... 62,000 621,561
Sharp Corp.................................. 51,970 786,117
Sumitomo Heavy Industries, Ltd.............. 189,000 743,803
Sumitomo Mitsui Financial Group, Inc........ 185 1,252,541
Toyota Motor Corp........................... 24,600 915,360
Yamaguchi Bank, Ltd......................... 40,134 494,049
-----------
17,759,592
-----------
Value
Security Description Shares (Note 3)
------------------------------------------------------------------
Norway -- 4.3%
DNB NOR ASA.................................. 143,980 $ 1,471,235
Statoil ASA.................................. 123,140 2,098,762
-----------
3,569,997
-----------
Portugal -- 0.9%
Banco Comercial Portugues SA................. 259,400 706,147
-----------
Singapore -- 1.0%
Hi-P International, Ltd...................... 407,000 377,228
Keppel Corp., Ltd............................ 72,168 476,530
-----------
853,758
-----------
South Africa -- 0.7%
Standard Bank Group, Ltd..................... 58,600 589,884
-----------
South Korea -- 1.8%
LG. Philips LCD Co., Ltd. ADR+............... 38,800 836,140
Woori Finance Holdings Co., Ltd.............. 68,900 678,483
-----------
1,514,623
-----------
Spain -- 3.6%
Antena 3 de Television SA+................... 22,700 1,852,368
Telefonica SA................................ 66,520 1,158,930
-----------
3,011,298
-----------
Sweden -- 5.9%
Ericsson LM Telephone Sponsored ADR+......... 29,430 829,926
Hennes & Mauritz AB, Class B................. 48,890 1,680,164
Nordea Bank AB............................... 234,780 2,374,064
-----------
4,884,154
-----------
Switzerland -- 7.8%
Credit Suisse Group+......................... 74,090 3,180,905
Roche Holding AG............................. 20,480 2,195,172
Synthes, Inc................................. 9,350 1,039,714
-----------
6,415,791
-----------
Taiwan -- 0.6%
Taiwan Semiconductor Manufacturing Co., Ltd.
Sp. ADR..................................... 54,600 463,008
-----------
Thailand -- 1.3%
Bangkok Bank PCL............................. 374,000 1,070,757
-----------
Turkey -- 0.8%
Yapi ve Kredi Bankasi AS+.................... 163,820 654,069
-----------
United Kingdom -- 7.6%
Amdocs, Ltd.+................................ 19,700 559,480
Enterprise Inns, PLC......................... 133,700 1,948,004
Reuters Group, PLC........................... 86,100 663,846
Tesco, PLC................................... 272,260 1,628,402
Vodafone Group, PLC.......................... 542,350 1,439,991
-----------
6,239,723
-----------
United States -- 0.0%
Softbrands, Inc.+............................ 40 72
-----------
Total Common Stock
(cost $69,856,341).......................... 78,548,220
-----------
44
SunAmerica International Equity Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2005 -- (unaudited) (continued)
Shares/
Principal Value
Security Description Amount (Note 3)
-------------------------------------------------------------------------
PREFERRED STOCK -- 1.0%
Brazil -- 1.0%
All America Latina Logistica
(cost $894,477)............................... 159,000 $ 872,417
-----------
Total Long-Term Investment Securities -- 96.3%
(cost $70,750,818)............................ 79,420,637
-----------
REPURCHASE AGREEMENTS -- 3.7%
Agreement with State Street Bank & Trust Co.,
bearing interest at 1.25%, dated 03/31/05, to
be repurchased 04/01/05 in the amount of
$3,035,105 and collateralized by $2,420,000
of United States Treasury Bonds, bearing
interest at 7.50%, due 11/15/16 and having
an approximate value of $3,098,861
(cost $3,035,000)............................. $3,035,000 3,035,000
-----------
TOTAL INVESTMENTS --
(cost $73,785,818)(2)......................... 100.0% 82,455,637
Liabilities in excess of other assets............ 0.0 (64)
---------- -----------
NET ASSETS -- 100.0% $82,455,573
========== ===========
- --------
+ Non-income producing securities
(1) Fair valued security. See Note 3
(2) Illiquid security
(3) See Note 6 for cost of investments on a tax basis
ADR -- American Depository Receipt
See Notes to Financial Statements
45
SunAmerica Value Fund
PORTFOLIO PROFILE -- March 31, 2005 -- (unaudited)
Industry Allocation *
Financial Services............. 15.2%
Energy Sources................. 11.7
Banks.......................... 10.2
Conglomerate................... 6.5
Aerospace & Military Technology 6.3
Utilities...................... 5.1
Telecommunications............. 4.7
Broadcasting & Media........... 4.2
Food, Beverage & Tobacco....... 4.0
Computers & Business Equipment. 3.9
Insurance...................... 3.8
Chemicals...................... 3.6
Retail......................... 3.5
Household & Personal Products.. 3.5
Pharmaceuticals................ 2.2
Repurchase Agreements.......... 2.1
Manufacturing.................. 1.9
Restaurants.................... 1.9
Leisure & Tourism.............. 1.6
Computer Software.............. 1.6
Medical Products............... 1.4
Electronics.................... 1.3
-----
100.2%
=====
- --------
* Calculated as a percentage of net assets.
46
SunAmerica Value Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2005 -- (unaudited)
Value
Security Description Shares (Note 3)
------------------------------------------------------------
COMMON STOCK -- 98.1%
Aerospace & Military Technology -- 6.3%
Alliant Techsystems, Inc.+............ 75,000 $ 5,358,750
General Dynamics Corp................. 45,000 4,817,250
United Technologies Corp.............. 50,000 5,083,000
------------
15,259,000
------------
Banks -- 10.2%
Bank of America Corp.................. 192,400 8,484,840
North Fork Bancorp., Inc.............. 125,000 3,467,500
U.S. Bancorp.......................... 145,000 4,178,900
Wachovia Corp......................... 85,000 4,327,350
Wells Fargo & Co...................... 70,000 4,186,000
------------
24,644,590
------------
Broadcasting & Media -- 4.2%
News Corp., Class A................... 280,000 4,737,600
Time Warner, Inc.+.................... 300,000 5,265,000
------------
10,002,600
------------
Chemicals -- 3.6%
du Pont (E.I.) de Nemours & Co........ 100,000 5,124,000
Praxair, Inc.......................... 75,000 3,589,500
------------
8,713,500
------------
Computers & Business Equipment -- 3.9%
Hewlett-Packard Co.................... 200,000 4,388,000
International Business Machines Corp.. 55,000 5,025,900
------------
9,413,900
------------
Conglomerate -- 6.5%
General Electric Co................... 300,000 10,818,000
Tyco International, Ltd............... 145,000 4,901,000
------------
15,719,000
------------
Computer Software -- 1.6%
Microsoft Corp........................ 156,400 3,780,188
------------
Electronics -- 1.3%
Applied Materials, Inc.+.............. 200,000 3,250,000
------------
Energy Sources -- 11.7%
ChevronTexaco Corp.................... 160,000 9,329,600
ConocoPhillips........................ 40,000 4,313,600
Exxon Mobil Corp...................... 172,900 10,304,840
Marathon Oil Corp..................... 90,000 4,222,800
------------
28,170,840
------------
Financial Services -- 15.2%
American Express Co................... 65,000 3,339,050
Capital One Financial Corp............ 50,000 3,738,500
Citigroup, Inc........................ 200,000 8,988,000
Goldman Sachs Group, Inc.............. 45,000 4,949,550
J.P. Morgan Chase & Co................ 185,000 6,401,000
Merrill Lynch & Co., Inc.............. 80,000 4,528,000
Morgan Stanley........................ 81,000 4,637,250
------------
36,581,350
------------
Food, Beverage & Tobacco -- 4.0%
Altria Group, Inc..................... 60,000 3,923,400
Diageo, PLC Sponsored ADR............. 100,000 5,690,000
------------
9,613,400
------------
Shares/
Principal Value
Security Description Amount (Note 3)
---------------------------------------------------------------
Household & Personal Products -- 3.5%
Fortune Brands, Inc................ 45,000 $ 3,628,350
Kimberly-Clark Corp................ 72,000 4,732,560
------------
8,360,910
------------
Insurance -- 3.8%
Allstate Corp...................... 80,000 4,324,800
Chubb Corp......................... 60,000 4,756,200
------------
9,081,000
------------
Leisure & Tourism -- 1.6%
Harrah's Entertainment, Inc........ 60,000 3,874,800
------------
Manufacturing -- 1.9%
ITT Industries, Inc................ 50,000 4,512,000
------------
Medical Products -- 1.4%
Johnson & Johnson.................. 50,000 3,358,000
------------
Pharmaceuticals -- 2.2%
Pfizer, Inc........................ 200,000 5,254,000
------------
Restaurants -- 1.9%
Wendy's International, Inc......... 115,000 4,489,600
------------
Retail -- 3.5%
Federated Department Stores, Inc... 70,000 4,454,800
Limited Brands, Inc................ 161,074 3,914,098
------------
8,368,898
------------
Telecommunications -- 4.7%
BCE, Inc........................... 100,000 2,499,000
BellSouth Corp..................... 155,000 4,074,950
Verizon Communications, Inc........ 135,000 4,792,500
------------
11,366,450
------------
Utilities -- 5.1%
Exelon Corp........................ 90,000 4,130,100
FPL Group, Inc..................... 110,000 4,416,500
Southern Co........................ 120,000 3,819,600
------------
12,366,200
------------
Total Long-Term Investment Securities -- 98.1%
(cost $213,012,773)............... 236,180,226
------------
REPURCHASE AGREEMENTS -- 2.1%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)
(cost $4,936,000)................. $4,936,000 4,936,000
TOTAL INVESTMENTS --
(cost $217,948,773)(2)............ 100.2% 241,116,226
Liabilities in excess of other assets (0.2) (443,039)
---------- ------------
NET ASSETS-- 100.0% $240,673,187
========== ============
- --------
+ Non-income producing securities
(1) See note 3 for details of Joint Repurchase Agreement
(2) See note 6 for cost of investments on a tax basis
ADR -- AmericanDepository Receipt
See Notes to Financial Statements
47
SunAmerica Biotech/Health Fund
PORTFOLIO PROFILE -- March 31, 2005 -- (unaudited)
Industry Allocation*
Biomedical..................... 22.3%
Biotechnology.................. 17.1
Pharmaceuticals................ 11.3
Therapeutics................... 10.5
Medical Drugs.................. 8.7
Genomics....................... 8.6
Repurchase Agreements.......... 7.8
Medical Devices................ 7.1
Health Maintenance Organization 3.7
Medical Products............... 3.3
-----
100.4%
=====
- --------
* Calculated as a percentage of net assets.
48
SunAmerica Biotech/Health Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2005 -- (unaudited)
Value
Security Description Shares (Note 3)
---------------------------------------------------------------------
COMMON STOCK -- 92.6%
Biomedical -- 22.3%
Amgen, Inc.+.................................... 20,000 $ 1,164,200
Genentech, Inc.+................................ 20,000 1,132,200
Genzyme Corp.+.................................. 20,000 1,144,800
Millennium Pharmaceuticals, Inc.+............... 150,000 1,263,000
Transkaryotic Therapies, Inc.+.................. 100,000 2,496,500
-----------
7,200,700
-----------
Biotechnology -- 17.1%
Affymetrix, Inc.+............................... 35,000 1,499,400
BioMarin Pharmaceutical, Inc.+.................. 200,000 1,030,000
Chiron Corp.+................................... 40,000 1,402,400
Medicines Co.+.................................. 70,000 1,586,200
-----------
5,518,000
-----------
Genomics -- 8.6%
Invitrogen Corp.+............................... 40,000 2,768,000
-----------
Health Maintenance Organization -- 3.7%
Centene Corp.+.................................. 40,000 1,199,600
-----------
Medical Devices -- 7.1%
Integra LifeSciences Holdings Corp.+............ 65,000 2,289,300
-----------
Medical Drugs -- 8.7%
Celgene Corp.+.................................. 30,000 1,021,500
MedImmune, Inc.+................................ 40,000 952,400
OSI Pharmaceuticals, Inc.+...................... 20,000 826,800
-----------
2,800,700
-----------
Medical Products -- 3.3%
Charles River Laboratories International, Inc.+. 20,000 940,800
Vnus Medical Technologies+...................... 10,000 115,800
-----------
1,056,600
-----------
Shares/
Principal Value
Security Description Amount (Note 3)
-----------------------------------------------------------------------
Pharmaceuticals -- 11.3%
Eyetech Pharmaceuticals, Inc.+.............. 30,000 $ 825,000
Onyx Pharmaceuticals, Inc.+................. 90,000 2,821,500
-----------
3,646,500
-----------
Therapeutics -- 10.5%
Abgenix, Inc.+.............................. 100,000 700,000
Cypress Bioscience, Inc.+................... 140,000 1,279,600
Gilead Sciences, Inc.+...................... 15,000 537,000
Medarex, Inc.+.............................. 85,000 606,050
Vion Pharmaceuticals, Inc.+................. 100,000 285,000
-----------
3,407,650
-----------
Total Long-Term Investment Securities -- 92.6%
(cost $29,756,988)......................... 29,887,050
-----------
REPURCHASE AGREEMENTS -- 7.8%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)
(cost $2,538,000).......................... $2,538,000 2,538,000
-----------
TOTAL INVESTMENTS --
(cost $32,294,988)(2)...................... 100.4% 32,425,050
Liabilities in excess of other assets......... (0.4) (137,825)
---------- -----------
NET ASSETS -- 100.0% $32,287,225
========== ===========
- --------
+ Non-income producing securities
(1)See Note 3 for details of Joint Repurchase Agreement
(2)See Note 6 for cost of investments on a tax basis
See Notes to Financial Statements
49
SunAmerica Tax Managed Equity Fund
PORTFOLIO PROFILE -- March 31, 2005 -- (unaudited)
Industry Allocation*
Financial Services............. 9.8%
Energy Sources................. 8.4
Conglomerate................... 7.2
Retail......................... 6.9
Pharmaceuticals................ 6.4
Medical Products............... 5.7
Telecommunications............. 5.2
Banks.......................... 5.1
Insurance...................... 5.1
Broadcasting & Media........... 4.6
Computer Software.............. 4.2
Computers & Business Equipment. 4.2
Food, Beverage, & Tobacco...... 4.2
Household & Personal Products.. 3.2
Aerospace & Military Technology 2.8
Machinery...................... 2.8
Electronics.................... 2.4
Utilities...................... 2.1
Time Deposit................... 1.6
Automotive..................... 1.5
Business Services.............. 1.0
Chemicals...................... 1.0
Apparel & Textiles............. 0.7
Energy Services................ 0.7
Metals & Mining................ 0.7
Transportation................. 0.7
Forest Products................ 0.6
Restaurants.................... 0.6
Communication Equipment........ 0.2
Internet Content............... 0.2
Manufacturing.................. 0.2
-----
100.0%
=====
- --------
* Calculated as a percentage of net assets.
50
SunAmerica Tax Managed Equity Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2005 -- (unaudited)
Value
Security Description Shares (Note 3)
---------------------------------------------------------
COMMON STOCK -- 98.4%
Aerospace & Military Technology -- 2.8%
Raytheon Co........................... 12,000 $ 464,400
United Technologies Corp.............. 8,200 833,612
----------
1,298,012
----------
Apparel & Textiles -- 0.7%
NIKE, Inc., Class B................... 4,000 333,240
----------
Automotive -- 1.5%
Johnson Controls, Inc................. 12,900 719,304
----------
Banks -- 5.1%
Bank of America Corp.................. 19,106 842,575
Bank of New York Co., Inc............. 10,400 302,120
U.S. Bancorp.......................... 14,131 407,255
Wachovia Corp......................... 3,000 152,730
Wells Fargo & Co...................... 12,000 717,600
----------
2,422,280
----------
Broadcasting & Media -- 4.6%
Comcast Corp., Class A+............... 16,800 561,120
E.W. Scripps Co., Class A............. 10,500 511,875
Gannett Co., Inc...................... 4,800 379,584
News Corp., Class B................... 17,100 301,131
Viacom, Inc., Class B................. 12,000 417,960
----------
2,171,670
----------
Business Services -- 1.0%
Accenture, Ltd., Class A+............. 20,200 487,830
----------
Chemicals -- 1.0%
Air Products & Chemicals, Inc......... 7,700 487,333
----------
Communication Equipment -- 0.2%
Juniper Networks, Inc.+............... 4,800 105,888
----------
Computer Software -- 4.2%
EMC Corp.+............................ 8,000 98,560
Microsoft Corp........................ 59,300 1,433,281
Oracle Corp.+......................... 36,500 455,520
----------
1,987,361
----------
Computers & Business Equipment -- 4.2%
Dell, Inc.+........................... 18,600 714,612
International Business Machines Corp.. 8,000 731,040
Lexmark International, Inc., Class A+. 6,500 519,805
----------
1,965,457
----------
Conglomerate -- 7.2%
3M Co................................. 5,800 497,002
General Electric Co................... 50,300 1,813,818
Tyco International, Ltd............... 31,300 1,057,940
----------
3,368,760
----------
Electronics -- 2.4%
Altera Corp.+......................... 18,900 373,842
Analog Devices, Inc................... 4,900 177,086
Intel Corp............................ 24,600 571,458
----------
1,122,386
----------
Energy Services -- 0.7%
Baker Hughes, Inc..................... 7,100 315,879
----------
Value
Security Description Shares (Note 3)
--------------------------------------------------------
Energy Sources -- 8.4%
Anadarko Petroleum Corp.............. 5,900 $ 448,990
ChevronTexaco Corp................... 22,700 1,323,637
ConocoPhillips....................... 6,600 711,744
Exxon Mobil Corp..................... 24,320 1,449,472
----------
3,933,843
----------
Financial Services -- 9.8%
CIT Group, Inc....................... 8,300 315,400
Citigroup, Inc....................... 37,066 1,665,746
Freddie Mac.......................... 14,800 935,360
Goldman Sachs Group, Inc............. 3,702 407,183
MBNA Corp............................ 9,000 220,950
Morgan Stanley....................... 11,600 664,100
State Street Corp.................... 4,000 174,880
Washington Mutual, Inc............... 6,500 256,750
----------
4,640,369
----------
Food, Beverage & Tobacco -- 4.2%
Altria Group, Inc.................... 12,000 784,680
Coca-Cola Co......................... 17,300 720,891
PepsiCo, Inc......................... 9,000 477,270
----------
1,982,841
----------
Forest Products -- 0.6%
Temple-Inland, Inc................... 3,900 282,945
----------
Household & Personal Products -- 3.2%
Gillette Co.......................... 11,200 565,376
Procter & Gamble Co.................. 18,000 954,000
----------
1,519,376
----------
Insurance -- 5.1%
Allstate Corp........................ 6,500 351,390
AMBAC Financial Group, Inc........... 10,900 814,775
American International Group, Inc. #. 4,500 249,345
RenaissanceRe Holdings, Ltd.......... 8,400 392,280
Torchmark Corp....................... 3,800 198,360
Willis Group Holdings, Ltd........... 10,500 387,135
----------
2,393,285
----------
Internet Content -- 0.2%
eBay, Inc.+.......................... 1,900 70,794
----------
Machinery -- 2.8%
Cooper Industries, Ltd., Class A..... 5,300 379,056
Danaher Corp......................... 7,800 416,598
Deere & Co........................... 8,100 543,753
----------
1,339,407
----------
Manufacturing -- 0.2%
Eaton Corp........................... 1,500 98,100
----------
Medical Products -- 5.7%
Boston Scientific Corp.+............. 10,000 292,900
Guidant Corp......................... 10,800 798,120
Johnson & Johnson.................... 22,444 1,507,339
Zimmer Holdings, Inc.+............... 1,200 93,372
----------
2,691,731
----------
Metals & Mining -- 0.7%
Alcoa, Inc........................... 10,000 303,900
----------
51
SunAmerica Tax Managed Equity Fund
PORTFOLIO OF INVESTMENTS -- March 31, 2005 -- (unaudited) (continued)
Value
Security Description Shares (Note 3)
---------------------------------------
COMMON STOCK (continued)
Pharmaceuticals -- 6.4%
Amgen, Inc.+.......................... 9,500 $ 552,995
Eli Lilly and Co...................... 10,600 552,260
Gilead Sciences, Inc.+................ 6,200 221,960
OSI Pharmaceuticals, Inc.+............ 1,800 74,412
Pfizer, Inc........................... 30,605 803,993
Sepracor, Inc.+....................... 4,200 241,122
Wyeth................................. 13,700 577,866
----------
3,024,608
----------
Restaurants -- 0.6%
Yum! Brands, Inc...................... 5,100 264,231
----------
Retail -- 6.9%
Home Depot, Inc....................... 17,150 655,816
Kohl's Corp.+......................... 9,500 490,485
Staples, Inc.......................... 9,000 282,870
Target Corp........................... 10,800 540,216
TJX Cos., Inc......................... 19,800 487,674
Wal-Mart Stores, Inc.................. 16,100 806,771
----------
3,263,832
----------
Telecommunications -- 5.2%
Cisco Systems, Inc.+.................. 44,000 787,160
Corning, Inc.+........................ 9,600 106,848
Nextel Communications, Inc., Class A+. 10,300 292,726
QUALCOMM, Inc......................... 9,800 359,170
SBC Communications, Inc............... 10,300 244,007
Verizon Communications, Inc........... 19,152 679,896
----------
2,469,807
----------
Shares/
Principal Value
Security Description Amount (Note 3)
-----------------------------------------------------------------------
Transportation -- 0.7%
United Parcel Service, Inc., Class B............ 4,500 $ 327,330
-----------
Utilities -- 2.1%
Dominion Resources, Inc......................... 7,000 521,010
FPL Group, Inc.................................. 4,600 184,690
Pinnacle West Capital Corp...................... 6,900 293,319
-----------
999,019
-----------
Total Long-Term Investment Securities -- 98.4%
(cost $45,388,672)............................. 46,390,818
-----------
SHORT-TERM INVESTMENT SECURITIES -- 1.6%
Time Deposit with State Street Bank & Trust Co.
0.90% due 04/01/05
(cost $739,000)................................ $739,000 739,000
-----------
TOTAL INVESTMENTS --
(cost $46,127,672)(1).......................... 100.0% 47,129,818
Other assets less liabilities..................... 0.0 22,451
-------- -----------
NET ASSETS -- 100.0% $47,152,269
======== ===========
- --------
+ Non-income producing securities
# Security represents an investment in an affiliated company -- See Note 10
(1)See Note 6 for cost of investments on a tax basis
See Notes to Financial Statements
52
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2005 -- (unaudited)
Note 1. Organization
SunAmerica Equity Funds is registered under the Investment Company Act of
1940, as amended, (the "1940 Act") as an open-end management investment
company and was organized as a Massachusetts business trust (the "Trust" or
"Equity Funds") on June 16, 1986. It currently consists of nine different
investment funds (each, a "Fund" and collectively, the Funds"). Each Fund is
a separate series of the Trust 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 Blue Chip Growth
Fund ("Blue Chip Growth Fund"), SunAmerica Growth Opportunities Fund
("Growth Opportunities Fund"), SunAmerica New Century Fund ("New Century
Fund"), SunAmerica Growth and Income Fund ("Growth and Income Fund"),
SunAmerica Balanced Assets Fund ("Balanced Assets Fund"), SunAmerica
International Equity Fund ("International Equity Fund"), SunAmerica Value
Fund ("Value Fund"), SunAmerica Biotech/Health Fund ("Biotech/Health Fund"),
and Tax Managed Equity Fund ("Tax Managed Equity Fund"). The Funds are
considered to be separate entities for financial and tax reporting purposes.
The investment objective for each of the Funds is as follows:
Blue Chip Growth Fund seeks capital appreciation, by primarily investing in
equity securities of Blue Chip companies that demonstrate the potential for
capital appreciation, issued by large-cap companies. At least 80% of the
Fund's net assets plus any borrowing for investment purposes will be
invested in such securities.
Growth Opportunities Fund seeks capital appreciation, by primarily investing
in equity securities that demonstrate the potential for capital
appreciation, issued generally by small-cap companies.
New Century Fund seeks capital appreciation, by investing in equity
securities that demonstrate the potential for capital appreciation, without
regard to market capitalization.
Growth and Income Fund seeks capital appreciation and current income, by
investing in equity securities issued by companies of any size, that pay
dividends, demonstrate the potential for capital appreciation and/or are
believed to be undervalued in the market.
Balanced Assets Fund seeks capital appreciation and conservation of
principal, through active trading partly in equity securities that
demonstrate the potential for capital appreciation issued by companies with
market capitalization of over $1.5 billion, and partly in high-quality bonds.
International Equity Fund seeks capital appreciation, by investing in equity
securities and other securities with equity characteristics of non-U.S.
issuers located in at least three countries other than the U.S. and selected
without regard to market capitalization. At least 80% of the Fund's net
assets plus any borrowing for investment purposes will be invested in such
securities.
Value Fund seeks long-term growth of capital through active trading of
equity securities selected on the basis of value criteria, issued by
companies of any market capitalization.
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.
Each Fund, except for the International Equity Fund, Value Fund, and
Biotech/Health Fund, is organized as a "diversified" Fund of the Trust.
Each Fund 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 are offered at net asset value per share plus an initial
sales charge. Additionally, any purchases of Class A shares in excess of
$1,000,000 will be purchased at net asset value but will be subject to a
contingent deferred sales charge on redemptions made within two years of
purchase. With respect to Class A shares of the International Equity Fund, a
redemption
53
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2005 -- (unaudited)
(continued)
fee of 2% will be assessed on the proceeds of any redemption of shares that
were purchased within ninety (90) days prior to the date of such redemption.
An exchange fee of 2% will be assessed on the amount of any exchange of
Class A shares of the International Equity Fund that were purchased within
ninety (90) days prior to the date of such exchange.
Class B shares are offered without an initial sales charge, although a
declining contingent sales charge may be imposed on redemptions made within
six years of purchase. Class B shares of each Fund convert automatically to
Class A shares approximately eight years after purchase of such Class B
shares and at such time will be subject to the lower distribution fee
applicable to Class A shares.
Class C shares are offered at net asset value per share without an initial
sales charge, although may be subject to a contingent deferred sales charge
on redemptions made within 12 months of purchase. Effective February 23,
2004 Class II shares were redesignated as Class C shares.
Class I, Class X and Class Z shares are offered at net asset value per
share. These classes are offered exclusively to participants in certain
employee benefit plans and other programs. Effective February 23, 2004,
Class I shares of the New Century Fund are no longer being offered for sale.
As of March 9, 2005, Class X shares of the Growth Opportunities Fund are no
longer being offered for sale.
Each class of shares bears the same voting, dividend, liquidation and other
rights and conditions. Class A, Class B and Class C shares each make
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 "Act"), except that Class B and Class C shares are subject to
higher distribution fee rates. There are no distribution payments applicable
to Class I, Class X and Class Z.
Indemnifications: Under the Trust's organizational documents, its officers
and trustees are indemnified against certain liability arising out of the
performance of their duties to the Trust. In addition, in the normal course
of business the Trust enters into contracts that contain a variety of
representations and warranties which provide general indemnifications. The
Trust's maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Trust that have not yet
occurred. However, the Trust expects the risk of loss to be remote.
Note 2. Fund Mergers
Pursuant to a plan of reorganization, all of the investment assets and
liabilities of the determined SunAmerica Focused Series, Inc. Portfolios and
the determined SunAmerica Strategic Series, Inc. Funds were transferred in a
tax-free exchange to a determined SunAmerica Equity Fund. The details of the
reorganization transactions, which was consummated on February 23, 2004, are
set forth below.
The SunAmerica Focused Series, Inc. Value Portfolio, the SunAmerica
Strategic Investment Series, Inc. Biotech/Health Fund and the SunAmerica
Strategic Investment Series, Inc. Tax Managed Equity Fund were reorganized
into the newly created SunAmerica Value Fund, Biotech/Health Fund and Tax
Managed Equity Fund in the SunAmerica Equity Funds. In addition, The
SunAmerica Equity Funds Focused Dividend Strategy Portfolio was reorganized
into the newly created Focused Dividend Strategy Portfolio in the SunAmerica
Focused Series, Inc.
Note 3. Significant Accounting Policies
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from these estimates. The
following is a summary of the significant accounting policies followed by
the Trust in the preparation of their financial statements:
Security Valuations: Stocks are generally valued based upon closing sales
prices reported on recognized securities exchanges or, for listed securities
having no sales reported and for unlisted securities, upon last reported bid
price. Securities listed on the NASDAQ stock market are 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. Nonconvertible bonds, debentures, other
long-term debt securities, and short- term securities with original or
remaining maturities in excess of 60 days are valued at prices obtained for
the day of valuation from a bond pricing service of a major dealer in bonds
when such prices are available; however, in circumstances where the
54
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2005 -- (unaudited)
(continued)
investment adviser deems it appropriate to do so, an over-the-counter or
exchange quotation at the mean of representative bid or asked prices may be
used. Securities traded primarily on securities exchanges outside the United
States of America are valued at the last sale price on such exchanges on the
day of valuation, or if there is no sale on the day of valuation, at the
last-reported bid price. If a security's price is available from more than
one foreign exchange, a portfolio uses the exchange that is the primary
market for the security. However, depending on the foreign market, closing
prices may be up to 15 hours old when they are used to price the Fund's
shares, and the Fund may determine that certain closing prices are
unreliable. This determination will be based on review of a number of
factors, including developments in foreign markets, the performance of U.S.
securities markets, and the performance of instruments trading in U.S.
markets that represent foreign securities and baskets of foreign securities.
If the Fund determines that closing prices do not reflect the fair value of
the securities, the Fund will adjust the previous closing prices in
accordance with pricing procedures approved by the Board of Trustees to
reflect what it believes to be the fair value of the securities as of the
close of regular trading on the New York Stock Exchange. A Fund may also
fair value securities in other situations, for example, when a particular
foreign market is closed but the Fund is open. For foreign equity
securities, the Fund uses an outside pricing service to provide it with
closing market prices and information used for adjusting those prices.
Futures contracts and options traded on national securities exchanges are
valued as of the close of the exchange on which they are traded. Short-term
securities with 60 days or less to maturity are amortized to maturity based
on their cost to the Fund if acquired within 60 days of maturity or, if
already held by the Fund on the 60th day, are amortized to maturity based on
the value determined on the 61st day. Securities for which quotations are
not readily available, or if a development/event occurs that may
significantly impact the value of the securities, then these securities may
be fair valued as determined pursuant to procedures adopted in good faith
under the direction of the Trust's Trustees.
Repurchase Agreements: The Funds, along with other affiliated registered
investment companies, pursuant to exemptive relief granted by the Securities
and Exchange Commission, 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. For repurchase agreements and joint repurchase agreements, the
Funds' custodian takes possession of the collateral pledged for investments
in repurchase agreements ("repo" or collectively "repos"). The underlying
collateral is valued daily on a mark to market basis to ensure that the
value, at the time the agreement is entered into, is equal to at least 102%
of the repurchase price, including accrued interest. 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 March 31, 2005, the following Funds held an undivided interest in a
joint repurchase agreement with State Street Bank & Trust Co.:
Percentage Principal
Fund Interest Amount
- ---- ---------- ----------
Blue Chip Growth.............. 0.61% $ 451,000
Growth Opportunities.......... 0.84 622,000
New Century................... 0.66 489,000
Growth and Income............. 2.23 1,656,000
Balanced Assets............... 1.06 790,000
Value......................... 6.63 4,936,000
Biotech/Health................ 3.41 2,538,000
As of such date, the repurchase agreement in the joint account and the
collateral therefore were as follows:
State Street Bank & Trust Co., dated March 31, 2005, bearing interest at a
rate of 2.40% per annum, with a principal amount of $74,416,000, a
repurchase price of $74,420,961 and a maturity date of April 1, 2005. The
repurchase agreement is collateralized by the following:
Maturity Principal Market
Type of Collateral Interest Rate Date Amount Value
- ------------------ ------------- -------- ----------- -----------
U.S. Treasury Bill............ 2.57% 04/28/05 $65,040,000 $64,909,920
U.S. Treasury Bill............ 2.77 06/30/05 8,725,000 8,663,925
U.S. Treasury Note............ 1.25 05/31/05 2,330,000 2,333,856
55
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2005 -- (unaudited)
(continued)
In addition, at March 31, 2005, the following Funds held an undivided
interest in a joint repurchase agreement with UBS Securities, LLC:
Percentage Principal
Fund Interest Amount
- ---- ---------- -----------
Growth Opportunities.......... 2.40% $ 6,000,000
New Century................... 6.00 15,000,000
As of such date, the repurchase agreement in the joint account and the
collateral therefore were as follows:
UBS Securities, LLC, dated March 31, 2005, bearing interest at a rate of
2.60% per annum, with a principal amount of $250,000,000 a repurchase price
of $250,018,056, and a maturity date of April 1, 2005. The repurchase
agreement is collateralized by the following:
Interest Maturity Principal Market
Type of Collateral Rate Date Amount Value
- ------------------ -------- -------- ------------ ------------
U.S. Treasury Inflation Index Note...... 3.50% 1/15/11 $150,000,000 $184,312,500
U.S. Treasury Inflation Index Note...... 3.38 1/15/12 58,481,000 70,688,909
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 accrued daily except when
collection is not expected. Dividend income is recorded on the ex-dividend
date except for certain dividends from foreign securities, which are
recorded as soon as the Fund is informed after the ex-dividend date. Funds
which earn foreign income and capital gains may be subject to foreign
withholding taxes and capital gains taxes at various rates. Under applicable
foreign law, a withholding of tax may be imposed on interest, dividends, and
capital gains at various rates. India, Thailand, and certain other countries
tax regulations require that taxes be paid on capital gains realized by the
Funds. These amounts are included in the net foreign withholding taxes on
capital gains line on the Statement of Operations. For financial statements
purposes, the Funds amortize all premiums and accrete all discounts on fixed
income securities.
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 of each class
of shares at the beginning of the day (after adjusting for the current
capital shares 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 value or other
appropriate methods. In all other respects, expenses are charged to each
Fund as incurred on a specific identification basis. Interest earned on cash
balances held at the custodian are shown as custody credits on the Statement
of Operations.
Dividends from net investment income, if any, are paid annually, except for
the Balanced Assets Fund and Growth and Income Fund, which pay quarterly.
Capital gain distributions, if any, are paid at least annually.
The Funds record dividends and distributions to their shareholders on the
ex-dividend date. The amount of dividends and distributions from net
investment income and net realized capital gains are determined and
presented in accordance with federal income tax regulations, which may
differ from U.S. generally accepted accounting principles. These "book/tax"
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are
reclassified within the capital accounts 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 by these reclassifications.
Each Fund intends to comply with the requirements of the Internal Revenue
Code, as amended, applicable to regulated investment companies and
distribute all of its taxable income, including any net realized gain on
investments to its shareholders. Therefore, no federal tax provisions are
required. Each Fund is considered a separate entity for tax purposes.
56
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2005 -- (unaudited)
(continued)
Investment Securities Loaned: For the period ended March 31, 2005, none of
the Funds participated in securities lending with qualified brokers. In
lending portfolio securities to brokers the Fund receives cash as collateral
against the loaned securities, which must be maintained at not less than
102% of the market value of the loaned securities during the period of the
loan. The Fund may use the cash collateral received to invest in short-term
investments which earn interest income or to cover bank overdrafts. Any
interest earned from the investment of the collateral is recorded by the
Funds net of the portion of interest that is rebated to the borrowing
broker. As with other extensions of credit, should the borrower of the
securities fail financially, the Fund may bear the risk of delay in recovery
or may be subject to replacing the loaned securities by purchasing them with
the cash collateral held, which may be less than 100% of the market value of
such securities at the time of replacement.
Foreign Currency Translation: The books and records of the Funds are
maintained in U.S. dollars. Assets and liabilities denominated in foreign
currencies 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 the end of the period. 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 period. Realized
foreign exchange gains and losses on other assets and liabilities and change
in unrealized foreign exchange gains and losses on other assets and
liabilities include foreign exchange gains and losses from currency gains or
losses between the trade and settlement dates of securities transactions,
the difference between the amounts of interest, dividends and foreign
withholding taxes recorded on the Funds' 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.
Forward Foreign Currency Contracts: Certain funds may enter into forward
foreign currency contracts ("forward contracts") to attempt to protect
securities and related receivables and payables against changes in future
foreign exchange rates or to enhance return. A forward contract is an
agreement between two parties to buy or sell currency at a set price on a
future date. The market value of the contract will fluctuate with changes in
currency exchange rates. The contract is marked to market daily using the
forward rate and the change in market value is recorded by the Fund as
unrealized gain or loss. On settlement date, the Fund records realized
foreign exchange gains or losses when the contract is closed equal to the
difference between the value of the contract at the time it was opened and
the value at the time it was closed. Risks may arise upon entering into
these contracts from the potential inability of counterparties to meet the
terms of their contracts and from unanticipated movements in the value of a
foreign currency relative to the U.S. dollar. Forward contracts involve
elements of risk in excess of the amounts reflected in the Statement of
Assets and Liabilities. The Fund bears the risk of an unfavorable change in
the foreign exchange rate underlying the forward contract.
Futures Contracts: A futures contract is an agreement between two parties to
buy and sell a financial instrument at a set price on a future date. Upon
entering into such a contract the 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 minimizes
counterparty credit risks. A Fund's participation in the futures market
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. 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. Futures contracts
involve elements of risk in excess of the amount reflected in the Statement
of Assets and Liabilities. At March 31, 2005, there were no open futures
contracts.
Options: An option is a contract conveying a right to buy or sell a
financial instrument at a specified price during a stipulated period. The
premium paid by a Fund for the purchase of a call or a put option is
included in the Fund's Statement of Assets and Liabilities as an investment
and subsequently marked to market to reflect the current market value of the
option.
57
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2005 -- (unaudited)
(continued)
When a Fund writes a call or a put option, an amount equal to the premium
received by the Fund is included in the Fund's Statement of Assets and
Liabilities as a liability and is subsequently marked to market to reflect
the current market value of the option written. If an option which the Fund
has written either expires on its stipulated expiration date, or if the Fund
enters into a closing purchase transaction, the Fund realizes a gain (or
loss if the cost of a closing purchase transaction exceeds the premium
received when the option was written) without regard to any unrealized gain
or loss on the underlying security, and the liability related to such
options is extinguished. If a call option which the Fund has written is
exercised, the Fund realizes a capital gain or loss from the sale of the
underlying security and the proceeds from such sale are increased by the
premium originally received. If a put option which the Fund has written is
exercised, the amount of the premium originally received reduces the cost of
the security which the Fund purchased upon exercise of the option.
There were no transactions in call and put options written during the period
ended March 31, 2005.
Short Sales: All funds may engage in "short sales against the box". A short
sale is against the box to the extent that the Fund contemporaneously owns,
or has the right to obtain without payment, securities identical to those
sold short. In addition, the Biotech/Health Fund, Tax Managed Equity Fund,
Value Fund and International Equity Fund 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 accrues
during the period of the loan. To borrow the security, the Fund may be
required to pay a premium, which would increase the cost of the security
sold. The proceeds of the short sale will be retained by the broker, to the
extent necessary to meet margin requirements, until the short position is
closed out. Until the Fund replaces a borrowed security, the Fund will
maintain daily a segregated account, containing cash or liquid securities,
at such a level that (i) the amount deposited in the account plus the amount
deposited with the broker as collateral will equal the current value of the
security sold short and (ii) the amount deposited in the segregated account
plus the amount deposited with the broker as collateral will not be less
than the market value of the security at the time it was sold short.
Liabilities for securities sold short are reported at market value in the
financial statements. Such liabilities are subject to off balance sheet risk
to the extent of any future increases in market value of the securities sold
short. The ultimate liability for securities sold short could exceed the
liabilities recorded in the Statement of Assets and Liabilities. The Fund
bears the risk of potential inability of the broker to meet their obligation
to perform.
Note 4. Investment Advisory and Management Agreement, Distribution Agreement
and Service Agreement
The Trust, on behalf of each Fund, has an Investment Advisory and Management
Agreement (the "Agreement") with SAAMCo. Under the Agreement, SAAMCo
provides continuous supervision of a Fund's portfolio and administers its
corporate affairs, subject to general review by the Trustees. 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 paid
to SAAMCo for Blue Chip Growth Fund, Growth Opportunities Fund, New Century
Fund, Growth and Income Fund and Balanced Assets Fund is computed daily and
payable monthly, at an annual rate of .75% of a Fund's average daily net
assets up to $350 million, .70% of the next $350 million, and .65%
thereafter. The rate for the International Equity Fund is 1.00% of the
Fund's average daily net assets. The annual rate for the Value Fund is 1.00%
for the first $750 million, 0.95% for the next $750 million, and 0.90% for
any amount exceeding $1.5 billion of the average daily net assets. The
annual rate for the Biotech/Health Fund and the Tax Managed Equity Fund is
0.75% and 0.85%, respectively, of the average daily net assets. For the
period ended March 31, 2005, SAAMCo earned fees in the amounts stated on the
Statement of Operations. The International Equity Fund is subadvised by AIG
Global Investment Corp. ("AIGGIC") pursuant to a subadvisory agreement with
SAAMCo. AIGGIC is an indirect wholly-owned subsidiary of AIG and an
affiliate of SAAMCo. AIGGIC receives an annual fee of 0.47% of the average
daily net assets of the Fund, which is paid by SAAMCo. Effective August 23,
2004, American Century, the subadvisor for the Value Fund, was replaced by
SAAMCo. The Tax Managed Equity Fund is subadvised by J.P. Morgan Fleming
Asset Management, Inc. and receives an annual fee of 0.45% of the average
daily net assets of the Fund, which is paid by SAAMCo.
58
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2005 -- (unaudited)
(continued)
SAAMCo has contractually agreed to waive fees or reimburse expenses, if
necessary, at or below the following percentages of each Fund's average net
assets.
Fund Percentage
- ---- ----------
Blue Chip Growth Class I...... 1.33%
Growth Opportunities Class I.. 1.33
Growth and Income Class I..... 1.32
Balanced Assets Class I....... 1.33
International Equity Class A.. 1.90
International Equity Class B.. 2.55
International Equity Class C.. 2.55
International Equity Class I.. 1.80
Value Class A................. 1.63
Value Class B................. 2.28
Value Class C................. 2.28
Value Class I................. 1.53
Value Class Z................. 1.06
Biotech/Health Class A........ 1.55
Biotech/Health Class B........ 2.20
Biotech/Health Class C........ 2.20
Tax Managed Class A........... 1.45
Tax Managed Class B........... 2.10
Tax Managed Class C........... 2.10
SAAMCo has voluntarily agreed to waive fees or reimburse expenses, if
necessary, at or below the following percentages of each Fund's average net
assets.
Fund Percentage
- ---- ----------
New Century Class C........... 2.14%
For the International Equity Fund, Value Fund, Biotech/Health Fund, and Tax
Managed Fund, any waivers or reimbursements made by SAAMCo are subject to
recoupment from the Funds within the following two years of making 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.
For the period ending March 31, 2005, SAAMCo has agreed to reimburse
expenses as follows:
Blue Chip Growth Class I...... $ 6,417
Growth Opportunities Class I.. 8,675
Growth Opportunities Class X.. 231
New Century Fund Class C...... 8,451
Growth & Income Class I....... 5,113
Balanced Assets Class I....... 7,780
International Equity Class A.. 23,186
International Equity Class B.. 23,654
International Equity Class C.. 15,333
International Equity Class I.. 5,214
Value Fund Class A............ 85,131
Value Fund Class B............ 74,300
Value Fund Class C............ 26,736
Value Fund Class I............ 11,378
Value Fund Class Z............ 11,786
Biotech / Health Class A...... 25,591
Biotech / Health Class B...... 25,027
Biotech / Health Class C...... 18,868
Tax Managed Equity Class A.... 21,354
Tax Managed Equity Class B.... 27,664
Tax Managed Equity Class C.... 24,770
- --------
59
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2005 -- (unaudited)
(continued)
For the period ended March 31, 2005, the amounts repaid to the Adviser are
as follows:
Value Fund Class C $1,237
At March 31, 2005, expenses previously waived or reimbursed by SAAMCO that
are subject to recoupment are as follows:
Class
Other Specific
Expenses Expenses
Reimbursed Reimbursed
---------- ----------
International Equity Class A.. $ -- $ 78,835
International Equity Class B.. -- 77,472
International Equity Class C.. -- 51,008
International Equity Class I.. -- 24,201
Value Fund Class A............ 66,708 59,123
Value Fund Class B............ 45,304 42,541
Value Fund Class C............ 22,029 22,493
Value Fund Class I............ 3,404 15,726
Value Fund Class Z............ 7,049 37,068
Biotech/Health Class A........ 3,471 88,205
Biotech/Health Class B........ 3,084 85,115
Biotech/Health Class C........ 2,216 65,208
Tax Managed Equity Class A.... 642 75,590
Tax Managed Equity Class B.... 931 108,001
Tax Managed Equity Class C.... 876 101,756
The Trust, on behalf of each Fund, has a Distribution Agreement with AIG
SunAmerica Capital Services, Inc. ("SACS"), an affiliate of the Adviser.
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 trustees and approved by
its shareholders. Pursuant to such rule, the Trustees and the shareholders
of each class of shares of each Fund have adopted Distribution Plans
hereinafter referred to as the "Class A Plan", "Class B Plan" and "Class C
Plan". In adopting the Distribution Plans, the Trustees 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 C Plan, the Distributor receives payments from
a Fund at an annual rate of up to 0.10%, 0.75% and 0.75%, respectively, of
average daily net assets of such Fund's Class to compensate the Distributor
and certain securities firms for providing sales and promotional activities
for distributing that class of shares. The distribution costs for which the
Distributor may be compensated for 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. The Distribution Plans 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 period ended March 31,
2005, SACS received fees (see Statement of Operations) based upon the
aforementioned rates.
60
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2005 -- (unaudited)
(continued)
In addition, SACS is paid a fee of 0.25% of average daily net assets of
Class I shares in connection with providing additional shareholder services
to Class I shareholders. For the period ended March 31, 2005, SACS earned
fees (see Statement of Operations) based upon the aforementioned rates.
SACS receives sales charges on each Fund's Class A shares, portions of which
are reallocated 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 each
Fund's Class A, Class B and Class C shares. SACS has advised the Funds that
for the period ended March 31, 2005, the proceeds received from sales (and
paid out to affiliated and non-affiliated broker-dealers) and redemptions
are as follows:
Class A Class B
- - ---------------------------------------------------- -------------
Contingent Contingent
Sales Affiliated Non-affiliated Deferred Deferred
Fund Charges Broker-dealers Broker-dealers Sales Charges Sales Charges
- ---- -------- -------------- -------------- ------------- -------------
Blue Chip Growth.... $ 22,198 $11,084 $ 8,319 $-- $ --
Growth Opportunities 31,923 16,192 11,369 -- 63,656
New Century......... 32,111 19,204 8,521 -- 7,921
Growth & Income..... 49,292 25,559 13,392 -- 67,472
Balanced Assets..... 136,874 82,855 35,829 -- 40,410
International Equity 23,547 9,020 11,092 -- 16,607
Value............... 183,710 55,406 102,202 -- 43,185
Biotech/Health...... 38,956 6,172 29,966 -- 32,793
Tax Managed Equity.. 7,548 6,619 (203) -- 31,837
Class C
- - -------------
Contingent
Deferred
Fund Sales Charges
- ---- -------------
Blue Chip Growth.... $1,373
Growth Opportunities 695
New Century......... 39
Growth & Income..... 2,031
Balanced Assets..... 3,319
International Equity 1,121
Value............... 3,429
Biotech/Health...... 917
Tax Managed Equity.. 510
The Trust has entered into a Service Agreement with AIG SunAmerica Fund
Services, Inc. ("SAFS"), an affiliate of the Adviser. 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. Except for Class Z shares, 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 Trustees. For the period ended March 31, 2005, the Funds
incurred the following expenses which are included in transfer agent fees
payable in the Statement of Asset and Liabilities and in transfer agent fees
and expenses in the Statement of Operations to compensate SAFS pursuant to
the terms of the Service Agreement.
Expense Payable At March 31, 2005
---------------------------------------- ---------------------------------------
Fund Class A Class B Class C Class I Class X Class A Class B Class C Class I Class X
- ---- -------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Blue Chip Growth.............. $ 68,116 $29,888 $ 6,861 $2,408 $ -- $11,155 $ 4,753 $1,122 $ 388 $ --
Growth Opportunities.......... 55,230 34,491 15,787 3,808 74 8,972 5,653 2,571 442 --
New Century................... 93,941 12,618 2,472 -- -- 16,319 2,117 418 -- --
Growth and Income............. 77,436 58,788 48,560 953 -- 13,086 9,568 8,003 170 --
Balanced Assets............... 175,448 41,084 24,191 800 -- 28,871 6,622 3,902 141 --
International Equity.......... 39,147 23,616 18,485 5,789 -- 7,219 4,084 3,293 1,157 --
Value......................... 116,948 75,208 38,514 5,946 -- 21,795 12,546 7,083 1,099 --
Biotech/Health................ 16,620 14,450 10,307 -- -- 2,497 2,163 1,511 -- --
Tax Managed Equity............ 14,610 21,015 19,757 -- -- 2,402 3,429 3,204 -- --
As of March 31, 2005, there are no shareholders holding more than five
percent of the outstanding shares of the Funds.
61
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2005 -- (unaudited)
(continued)
Note 5. Purchases and Sales of Investment Securities
The cost of purchases and proceeds from sales and maturities of long-term
investments during the period ended March 31, 2005, were as follows:
Blue Chip Growth New Growth and Balanced
Growth Opportunities Century Income Assets
Fund Fund Fund Fund Fund
------------- ------------- ----------- ----------- ------------
Purchases (excluding U.S. government securities)........... $62,945,141 $37,840,710 $21,261,072 $54,569,713 $151,550,336
Sales and maturities (excluding U.S. government securities) 74,038,810 54,394,458 45,610,459 71,216,766 173,204,504
Purchases of U.S. government securities.................... -- -- -- -- 20,983,583
Sales and maturities of U.S. government securities......... -- -- -- -- $ 18,977,510
International Tax
Equity Value Biotech/ Managed
Fund Fund Health Fund Equity Fund
------------- ------------- ----------- -----------
Purchases (excluding U.S. government securities)........... $50,431,006 $59,252,079 $22,861,779 $ 4,992,103
Sales and maturities (excluding U.S. government securities) 55,138,569 43,588,662 29,712,641 11,289,153
Purchases of U.S. government securities.................... -- -- -- --
Sales and maturities of U.S. government securities......... -- -- -- --
Note 6. Federal Income Taxes
The amounts of aggregate unrealized gain (loss) and the cost of investment
securities for federal tax purposes, including short-term securities and
repurchase agreements, were as follows:
Blue Chip Growth New Growth and Balanced
Growth Opportunities Century Income Assets
Fund Fund Fund Fund Fund
------------- ------------- ----------- ------------ ------------
Cost (tax basis).......................... $89,507,932 $ 83,264,119 $87,958,563 $149,838,193 $203,786,038
=========== ============ =========== ============ ============
Appreciation.............................. 5,676,276 13,118,367 16,107,585 16,536,219 10,277,867
Depreciation.............................. (3,412,964) (6,073,141) (4,931,589) (4,917,841) (6,300,336)
----------- ------------ ----------- ------------ ------------
Net unrealized appreciation (depreciation) $ 2,263,312 $ 7,045,226 $11,175,996 $ 11,618,378 $ 3,977,531
=========== ============ =========== ============ ============
International Tax
Equity Value Biotech/ Managed
Fund Fund Health Fund Equity Fund
------------- ------------- ----------- ------------
Cost (tax basis).......................... $73,875,880 $218,198,966 $32,374,925 $ 46,128,837
=========== ============ =========== ============
Appreciation.............................. 9,631,394 25,057,571 3,679,083 7,024,202
Depreciation.............................. (1,051,637) (2,140,311) (3,628,958) (6,023,221)
----------- ------------ ----------- ------------
Net unrealized appreciation (depreciation) $ 8,579,757 $ 22,917,260 $ 50,125 $ 1,000,981
=========== ============ =========== ============
The tax basis components of distributable earnings differ from the amounts
reflected in the Statement of Assets and Liabilities due to temporary
book/tax differences primarily arising from wash sales, post October losses
and derivative transactions.
Distributable Earnings Tax Distributions
---------------------------------------- ------------------------
For the year ended September 30, 2004
------------------------------------------------------------------
Long-term Unrealized
Ordinary Gains/Capital Appreciation Ordinary Long-Term
Income Loss Carryover (Depreciation) Income Capital Gains
----------- -------------- -------------- ---------- -------------
Blue Chip Growth Fund.... $ -- $ (84,930,865) $ 5,105,191 $ -- $--
Growth Opportunities Fund -- (220,696,018) (3,556,736) -- --
New Century Fund......... -- (124,825,423) 9,687,780 -- --
Growth and Income Fund... -- (73,610,116) 6,307,571 -- --
Balanced Assets Fund..... 144,558 (94,775,722) 7,224,844 2,486,303 --
International Equity Fund -- (51,681,401) 3,122,257 28,461 --
Value Fund............... 15,368,076 7,905,385 6,775,023 8,542,676 --
Biotech/Health Fund...... -- (34,471,749) 2,352,720 -- --
Tax Managed Equity Fund.. -- (31,518,750) (708,557) -- --
62
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2005 -- (unaudited)
(continued)
For Federal income tax purposes, the Funds indicated below have capital loss
carryforwards, which expire in the year indicated, as of September 30, 2004,
which are available to offset future capital gains, if any:
Capital Loss Carryforward
----------------------------------------------------------------------
2007 2008 2009 2010 2011 2012
---------- ----------- ----------- ------------ ----------- ----------
Blue Chip Growth Fund(2).... $ -- $29,065,576 $ -- $ 13,804,345 $42,060,944 $ --
Growth Opportunities Fund(2) -- 11,769,320 151,316 143,462,580 65,312,802 --
New Century Fund............ -- -- 6,929,458 81,462,574 36,351,156 --
Growth and Income Fund(2)... 2,391,114 -- 13,448,714 21,417,395 30,630,503 5,722,390
Balanced Assets Fund(2)..... 2,378,112 7,400,729 536,524 24,904,988 55,685,563 3,869,806
International Equity Fund(2) 92,698 17,818,885 17,510,699 11,189,965 5,008,920 --
Value Fund.................. -- -- -- -- -- --
Biotech/Health Fund......... -- -- 16,342,315 17,583,650 545,784 --
Tax Managed Equity Fund..... 91,428 3,887,711 6,189,990 15,675,665 4,260,050 594,906
Note 7. Capital Share Transactions
Transactions in capital shares of each class of each fund were as follows:
Blue Chip Growth Fund
----------------------------------------------------------------------------------------------------
Class A Class B
------------------------------------------------ --------------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2005 year ended March 31, 2005 year ended
(unaudited) September 30, 2004 (unaudited) September 30, 2004
---------------------- ------------------------ ---------------------- -------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Shares sold............ 171,813* $ 2,525,295* 698,970@ $ 9,864,564@ 67,547 $ 900,205 307,120 $ 4,008,403
Reinvested dividends... -- -- -- -- -- -- -- --
Shares redeemed........ (583,687) (8,589,274) (1,204,891) (17,272,160) (373,410)* (4,947,201)* (648,520)@ (8,397,097)@
-------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Net increase (decrease) (411,874) $ (6,063,979) (505,921) $ (7,407,596) (305,863) $(4,046,996) (341,400) $ (4,388,694)
======== ============ ========== ============ ======== =========== ========== ============
Blue Chip Growth Fund
----------------------------------------------------------------------------------------------------
Class C(1) Class I
------------------------------------------------ --------------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2005 year ended March 31, 2005 year ended
(unaudited) September 30, 2004 (unaudited) September 30, 2004
---------------------- ------------------------ ---------------------- -------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Shares sold............ 15,792 $ 209,031 75,814 $ 976,052 15,649 $ 230,442 139,129 $ 2,085,799
Reinvested dividends... -- -- -- -- -- -- -- --
Shares redeemed........ (75,361) (995,846) (178,943) (2,317,761) (26,431) (391,134) (1,489,029) (22,138,786)
-------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Net increase (decrease) (59,569) $ (786,815) (103,129) $ (1,341,709) (10,782) $ (160,692) (1,349,900) $(20,052,987)
======== ============ ========== ============ ======== =========== ========== ============
Growth Opportunities Fund
----------------------------------------------------------------------------------------------------
Class A Class B
------------------------------------------------ --------------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2005 year ended March 31, 2005 year ended
(unaudited) September 30, 2004 (unaudited) September 30, 2004
---------------------- ------------------------ ---------------------- -------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Shares sold............ 121,402+ $ 1,803,554+ 569,253# $ 8,371,293# 50,312 $ 665,803 233,369 $ 3,089,899
Reinvested dividends... -- -- -- -- -- -- -- --
Shares redeemed........ (680,790) (10,158,685) (1,471,961) (21,425,290) (436,846)+ (5,817,526)+ (796,959)# (10,510,340)#
-------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Net increase (decrease) (559,388) $ (8,355,131) (902,708) $(13,053,997) (386,534) $(5,151,723) (563,590) $ (7,420,441)
======== ============ ========== ============ ======== =========== ========== ============
- --------
* Includes automatic conversion of 69,959 shares of Class B shares in the
amount of $922,054 to 62,937 shares of Class A shares in the amount of
$922,054.
@ Includes automatic conversion of 139,168 shares of Class B shares in the
amount of $1,760,890 to 124,674 shares of Class A shares in the amount of
$1,760,890.
+ Includes automatic conversion of 26,833 shares of Class B shares in the
amount of $358,830 to 24,062 shares of Class A shares in the amount of
$358,830.
# Includes automatic conversion of 64,460 shares of Class B shares in the
amount of $842,173 to 58,108 shares of Class A shares in the amount of
$842,173.
(1)Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
(2)The capital loss carryforwards include realized capital losses from the
acquisition of other funds. These losses may be subject to annual limitation
imposed by the Internal Revenue Code. Therefore, it is possible that not all
of these capital losses will be available for use.
63
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2005 -- (unaudited)
(continued)
Growth Opportunities Fund
------------------------------------------------------------------------------------------------
Class C(1) Class I
----------------------------------------------- -----------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2005 year ended March 31, 2005 year ended
(unaudited) September 30, 2004 (unaudited) September 30, 2004
--------------------- ------------------------ ---------------------- ----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- ---------- ------------ -------- ----------- -------- -----------
Shares sold............ 34,852 $ 459,846 93,978 $ 1,244,073 14,591 $ 216,868 46,491 $ 685,347
Reinvested dividends... -- -- -- -- -- -- -- --
Shares redeemed........ (235,936) (3,133,076) (496,600) (6,453,697) (152,700) (2,357,478) (111,633) (1,566,530)
-------- ----------- ---------- ------------ -------- ----------- -------- -----------
Net increase (decrease) (201,084) $(2,673,230) (402,622) $ (5,209,624) (138,109) $(2,140,610) (65,142) $ (881,183)
======== =========== ========== ============ ======== =========== ======== ===========
Growth Opportunities Fund
-----------------------------------------------
Class X#
-----------------------------------------------
For the
six months ended For the
March 31, 2005 year ended
(unaudited) September 30, 2004
--------------------- ------------------------
Shares Amount Shares Amount
-------- ----------- ---------- ------------
Shares sold............ -- $ -- 311,431 $ 4,704,596
Reinvested dividends... -- -- -- --
Shares redeemed........ (5,500) (86,965) (1,046,968) (15,570,116)
-------- ----------- ---------- ------------
Net increase (decrease) (5,500) $ (86,965) (735,537) $(10,865,520)
======== =========== ========== ============
New Century Fund
------------------------------------------------------------------------------------------------
Class A Class B
----------------------------------------------- -----------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2005 year ended March 31, 2005 year ended
(unaudited) September 30, 2004 (unaudited) September 30, 2004
--------------------- ------------------------ ---------------------- ----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- ---------- ------------ -------- ----------- -------- -----------
Shares sold............ 210,183* $ 3,428,455* 545,178+ $ 7,877,009+ 27,526 $ 396,741 114,707 $ 1,471,759
Reinvested dividends... -- -- -- -- -- -- -- --
Shares redeemed........ (552,205) (8,931,378) (1,445,548) (20,947,928) (154,974)* (2,205,750)* (581,815)+ (7,492,365)+
-------- ----------- ---------- ------------ -------- ----------- -------- -----------
Net increase (decrease) (342,022) $(5,502,923) (900,370) $(13,070,919) (127,448) $(1,809,009) (467,108) $(6,020,606)
======== =========== ========== ============ ======== =========== ======== ===========
New Century Fund
-----------------------------------------------------------------------
Class C(1) Class I#
----------------------------------------------- ----------------------
For the
six months ended For the For the
March 31, 2005 year ended year ended
(unaudited) September 30, 2004 September 30, 2004
--------------------- ------------------------ ----------------------
Shares Amount Shares Amount Shares Amount
-------- ----------- ---------- ------------ -------- -----------
Shares sold............ 7,268 $ 104,083 27,155 $ 338,876 23,471 $ 366,941
Reinvested dividends... -- -- -- -- -- --
Shares redeemed........ (25,973) (373,939) (42,881) (555,109) (362,040) (5,505,570)
-------- ----------- ---------- ------------ -------- -----------
Net increase (decrease) (18,705) $ (269,856) (15,726) $ (216,233) (338,569) $(5,138,629)
======== =========== ========== ============ ======== ===========
- --------
# See Note 1
* Includes automatic conversion of 99,875 shares of Class B shares in the
amount of $1,421,970 to 88,609 shares of Class A shares in the amount of
$1,421,970
+ Includes automatic conversion of 310,347 shares of Class B shares in the
amount of $4,006,706 to 276,932 shares of Class A shares in the amount of
$4,006,706.
(1)Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
64
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2005 -- (unaudited)
(continued)
Growth and Income Fund
-------------------------------------------------------------------------------------------------------
Class A Class B
-------------------------------------------------- ---------------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2005 year ended March 31, 2005 year ended
(unaudited) September 30, 2004 (unaudited) September 30, 2004
------------------------ ------------------------ ----------------------- -------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Shares sold............ 401,175+ $ 4,841,927+ 1,045,004@ $ 11,688,438@ 163,338 $ 1,885,123 436,582 $ 4,667,708
Reinvested dividends... 17,540 216,963 -- -- -- -- -- --
Shares redeemed........ (866,171) (10,504,812) (1,927,723) (21,643,098) (909,958)+ (10,409,846)+ (2,246,309)@ (23,862,612)@
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Net increase (decrease) (447,456) $ (5,445,922) (882,719) $ (9,954,660) (746,620) $ (8,524,723) (1,809,727) $(19,194,904)
========== ============ ========== ============ ======== ============ ========== ============
Growth and Income Fund
-------------------------------------------------------------------------------------------------------
Class C(1) Class I
-------------------------------------------------- ---------------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2005 year ended March 31, 2005 year ended
(unaudited) September 30, 2004 (unaudited) September 30, 2004
------------------------ ------------------------ ----------------------- -------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Shares sold............ 48,801 $ 560,416 183,472 $ 1,937,831 14,607 $ 177,397 123,017 $ 1,442,050
Reinvested dividends... -- -- -- -- 300 3,703 -- --
Shares redeemed........ (523,866) (6,020,810) (1,213,371) (12,873,624) (10,137) (123,159) (1,319,421) (15,401,935)
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Net increase (decrease) (475,065) $ (5,460,394) (1,029,899) $(10,935,793) 4,770 $ 57,941 (1,196,404) $(13,959,885)
========== ============ ========== ============ ======== ============ ========== ============
Balanced Assets Fund
-------------------------------------------------------------------------------------------------------
Class A Class B
-------------------------------------------------- ---------------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2005 year ended March 31, 2005 year ended
(unaudited) September 30, 2004 (unaudited) September 30, 2004
------------------------ ------------------------ ----------------------- -------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Shares sold............ 405,514# $ 5,506,271# 1,207,170* $ 15,877,253* 110,716 $ 1,499,694 361,540 $ 4,742,697
Reinvested dividends... 120,628 1,647,371 149,834 1,981,459 19,338 263,570 16,011 211,106
Shares redeemed........ (1,470,775) (20,063,960) (3,283,862) (43,275,829) (514,416)# (6,963,063)# (1,262,126)* (16,530,680)*
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Net increase (decrease) (944,633) $(12,910,318) (1,926,858) $(25,417,117) (384,362) $ (5,199,799) (884,575) $(11,576,877)
========== ============ ========== ============ ======== ============ ========== ============
Balanced Assets Fund
-------------------------------------------------------------------------------------------------------
Class C(1) Class I
-------------------------------------------------- ---------------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2005 year ended March 31, 2005 year ended
(unaudited) September 30, 2004 (unaudited) September 30, 2004
------------------------ ------------------------ ----------------------- -------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Shares sold............ 49,616 $ 676,628 196,419 $ 2,583,488 15,991 $ 216,979 133,077 $ 1,726,494
Reinvested dividends... 10,966 149,668 9,054 119,529 682 9,328 2,491 33,022
Shares redeemed........ (263,386) (3,575,407) (549,958) (7,216,970) (12,640) (172,928) (451,196) (5,895,473)
---------- ------------ ---------- ------------ -------- ------------ ---------- ------------
Net increase (decrease) (202,804) $ (2,749,111) (344,485) $ (4,513,953) 4,033 $ 53,379 (315,628) $ (4,135,957)
========== ============ ========== ============ ======== ============ ========== ============
- --------
+ Includes automatic conversion of 245,727 shares of Class B shares in the
amount of $2,787,789 to 232,160 shares of Class A shares in the amount of
$2,787,789.
@ Includes automatic conversion of 587,030 shares of Class B shares in the
amount of $6,214,968 to 556,118 shares of Class A shares in the amount of
$6,214,968.
# Includes automatic conversion of 127,675 shares of Class B shares in the
amount of $1,718,154 to 127,243 shares of Class A shares in the amount of
$1,718,154.
* Includes automatic conversion of 172,518 shares of Class B shares in the
amount of $1,847,985 to 163,528 shares of Class A shares in the amount of
$1,847,985.
(1)Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
65
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2005 -- (unaudited)
(continued)
International Equity Fund
-----------------------------------------------------------------------------------------------------
Class A Class B
----------------------------------------------- ----------------------------------------------------
For the
six months ended For the For the For the
March 31, 2005 year ended six months ended year ended
(unaudited) September 30, 2004 March 31, 2005 (unaudited) September 30, 2004
--------------------- ------------------------ ------------------------ -------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ----------- ---------- ------------ -------- ----------- ---------- ------------
Shares sold......... 537,862* $ 6,181,893* 1,003,369@ $ 9,993,370@ 153,457 $ 1,674,511 463,405 $ 4,317,209
Reinvested dividends -- -- 1,103 10,629 -- -- -- --
Shares redeemed..... (466,547) (5,284,884) (1,135,026) (11,344,294) (391,527)* (4,199,030)* (1,302,084)@ (12,437,630)@
-------- ----------- ---------- ------------ -------- ----------- ---------- ------------
Net increase
(decrease)......... 71,315 $ 897,009 (130,554) $ (1,340,295) (238,070) $(2,524,519) (838,679) $ (8,120,421)
======== =========== ========== ============ ======== =========== ========== ============
International Equity Fund
---------------------------------------------------------------------------------------------------------
Class C(2) Class I
---------------------------------------------------- --------------------------------------------------
For the For the
six months ended For the six months ended For the
March 31, 2005 year ended March 31, 2005 year ended
(unaudited) September 30, 2004 (unaudited) September 30, 2004
------------------------ ------------------------- ------------------------ ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
--------- ------------ ---------- ------------ ---------- ------------ ---------- ------------
Shares sold......... 90,562 $ 993,047 244,213 $ 2,307,252 139,800 $ 1,611,973 526,358 $ 5,224,935
Reinvested dividends -- -- -- -- -- -- 1,799 17,397
Shares redeemed..... (187,741) (2,009,161) (386,123) (3,682,438) (35,993) (418,442) (2,451,685) (25,844,650)
--------- ------------ ---------- ------------ ---------- ------------ ---------- ------------
Net increase
(decrease)......... (97,179) $ (1,016,114) (141,910) $ (1,375,186) 103,807 $ 1,193,531 (1,923,528) $(20,602,318)
========= ============ ========== ============ ========== ============ ========== ============
Value Fund(1)
-------------------------------------------------------------------------------
Class A
-------------------------------------------------------------------------------
For the
six months ended For the For the
March 31, 2005 eleven months ended year ended
(unaudited) September 30, 2004 October 31, 2003
------------------------ ------------------------- ------------------------
Shares Amount Shares Amount Shares Amount
--------- ------------ ---------- ------------ ---------- ------------
Shares sold......... 1,660,122+ $ 29,276,673+ 2,512,260# $ 42,830,376# 1,250,958 $ 18,840,328
Reinvested dividends 587,342 10,096,416 165,970 2,706,977 148,209 2,134,200
Shares redeemed..... (664,016) (11,675,901) (1,208,150) (20,534,683) (1,166,737) (17,494,094)
--------- ------------ ---------- ------------ ---------- ------------
Net increase
(decrease)......... 1,583,448 $ 27,697,188 1,470,080 $ 25,002,670 232,430 $ 3,480,434
========= ============ ========== ============ ========== ============
Value Fund(1)
-------------------------------------------------------------------------------
Class B
-------------------------------------------------------------------------------
For the
six months ended For the For the
March 31, 2005 eleven months ended year ended
(unaudited) September 30, 2004 October 31, 2003
------------------------ ------------------------- ------------------------
Shares Amount Shares Amount Shares Amount
--------- ------------ ---------- ------------ ---------- ------------
Shares sold......... 440,554 $ 7,499,699 602,789 $ 9,867,154 790,880 $ 11,373,716
Reinvested dividends 402,570 6,634,351 211,580 3,326,044 190,506 2,649,945
Shares redeemed..... (964,747)+ (16,255,763)+ (2,126,505)# (34,796,505)# (1,219,512) (17,398,128)
--------- ------------ ---------- ------------ ---------- ------------
Net increase
(decrease)......... (121,623) $ (2,121,713) (1,312,136) $(21,603,307) (238,126) $ (3,374,467)
========= ============ ========== ============ ========== ============
- --------
* Includes automatic conversion of 172,518 shares of Class B shares in the
amount of $1,847,985 to 163,528 shares of Class A shares in the amount of
$1,847,985.
@ Includes automatic conversion of 386,073 shares of Class B shares in the
amount of $3,709,614 to 367,493 shares of Class A shares in the amount of
$3,709,614.
+ Includes automatic conversion of 623,083 shares of Class B shares in the
amount of $10,417,799 to 597,068 shares of Class A shares in the amount of
$10,417,799.
# Includes automatic conversion of 1,197,366 shares of Class B shares in the
amount of $19,615,894 to 1,151,426 shares of Class A shares in the amount of
$19,615,894.
(1)See Note 2
(2)Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
66
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2005 -- (unaudited)
(continued)
Value Fund#
-------------------------------------------------------------------
Class C(1)
-------------------------------------------------------------------
For the
six months ended For the For the
March 31, 2005 eleven months ended year ended
(unaudited) September 30, 2004 October 31, 2003
--------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ----------- -------- -----------
Shares sold............ 438,328 $ 7,457,950 673,127 $11,022,116 543,767 $ 7,827,633
Reinvested dividends... 198,515 3,271,530 58,785 924,693 46,488 646,641
Shares redeemed........ (189,470) (3,222,757) (384,036) (6,289,709) (427,255) (6,130,918)
-------- ----------- -------- ----------- -------- -----------
Net increase (decrease) 447,373 $ 7,506,723 347,876 $ 5,657,100 163,000 $ 2,343,356
======== =========== ======== =========== ======== ===========
Value Fund#
-------------------------------------------------------------------
Class I
-------------------------------------------------------------------
For the
six months ended For the For the
March 31, 2005 eleven months ended year ended
(unaudited) September 30, 2004 October 31, 2003
--------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ----------- -------- -----------
Shares sold............ 53,243 $ 941,164 89,529 $ 1,520,604 94,391 $ 1,425,043
Reinvested dividends... 34,149 586,340 21,805 355,230 15,108 217,403
Shares redeemed........ (16,130) (283,927) (248,738) (4,344,445) (26,620) (405,802)
-------- ----------- -------- ----------- -------- -----------
Net increase (decrease) 71,262 $ 1,243,577 (137,404) $(2,468,611) 82,879 $ 1,236,644
======== =========== ======== =========== ======== ===========
Value Fund#
-------------------------------------------------------------------
Class Z
-------------------------------------------------------------------
For the
six months ended For the For the
March 31, 2005 eleven months ended year ended
(unaudited) September 30, 2004 October 31, 2003
--------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ----------- -------- -----------
Shares sold............ 319,118 $ 5,807,128 175,918 $ 3,072,631 268,453 $ 3,953,345
Reinvested dividends... 60,060 1,060,065 15,301 255,534 1,192 17,449
Shares redeemed........ (40,681) (734,336) (56,424) (979,176) (23,150) (355,897)
-------- ----------- -------- ----------- -------- -----------
Net increase (decrease) 338,497 $ 6,132,857 134,795 $ 2,348,989 246,495 $ 3,614,897
======== =========== ======== =========== ======== ===========
- --------
# See Note 2
(1)Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
67
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2005 -- (unaudited)
(continued)
Biotech/Health Fund#
-----------------------------------------------------------------------
Class A
-----------------------------------------------------------------------
For the
six months ended For the For the
March 31, 2005 eleven months ended year ended
(unaudited) September 30, 2004 October 31, 2003
---------------------- ---------------------- ---------------------
Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ----------- -------- -----------
Shares sold............ 296,900* $ 2,727,699* 453,977@ $ 4,634,336@ 456,700 $ 3,940,808
Reinvested dividends... -- -- -- -- -- --
Shares redeemed........ (467,842) (4,128,568) (627,513) (6,279,531) (639,968) (5,253,782)
-------- ----------- -------- ----------- -------- -----------
Net increase (decrease) (170,942) $(1,400,869) (173,536) $(1,645,195) (183,268) $(1,312,974)
======== =========== ======== =========== ======== ===========
Biotech/Health Fund#
-----------------------------------------------------------------------
Class B
-----------------------------------------------------------------------
For the
six months ended For the For the
March 31, 2005 eleven months ended year ended
(unaudited) September 30, 2004 October 31, 2003
---------------------- ---------------------- ---------------------
Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ----------- -------- -----------
Shares sold............ 36,486 $ 309,024 198,059 $ 1,981,347 504,910 $ 4,524,190
Reinvested dividends... -- -- -- -- -- --
Shares redeemed........ (265,876)* (2,287,584)* (414,457)@ (4,021,201)@ (746,314) (6,389,961)
-------- ----------- -------- ----------- -------- -----------
Net increase (decrease) (229,390) $(1,978,560) (216,398) $(2,039,854) (241,404) $(1,865,771)
======== =========== ======== =========== ======== ===========
Biotech/Health Fund#
-----------------------------------------------------------------------
Class C(1)
-----------------------------------------------------------------------
For the
six months ended For the For the
March 31, 2005 eleven months ended year ended
(unaudited) September 30, 2004 October 31, 2003
---------------------- ---------------------- ---------------------
Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ----------- -------- -----------
Shares sold............ 52,581 $ 462,903 143,510 $ 1,438,774 211,434 $ 1,825,147
Reinvested dividends... -- -- -- -- -- --
Shares redeemed........ (255,797) (2,212,670) (279,256) (2,695,203) (551,787) (4,263,083)
-------- ----------- -------- ----------- -------- -----------
Net increase (decrease) (203,216) $(1,749,767) (135,746) $(1,256,429) (340,353) $(2,437,936)
======== =========== ======== =========== ======== ===========
- --------
# See Note 2
* Includes automatic conversion of 6,565 shares of Class B shares in the
amount of $56,014 to 6,369 shares of Class A shares in the amount of $56,014.
@ Includes automatic conversion of 29,963 shares of Class B shares in the
amount of $294,679 to 29,231 shares of Class A shares in the amount of
$294,679.
(1)Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
68
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2005 -- (unaudited)
(continued)
Tax Managed Equity Fund#
-----------------------------------------------------------------------
Class A
-----------------------------------------------------------------------
For the
six months ended For the For the
March 31, 2005 eleven months ended year ended
(unaudited) September 30, 2004 October 31, 2003
---------------------- ---------------------- ---------------------
Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ----------- -------- -----------
Shares sold............ 37,064+ $ 432,634+ 84,726@ $ 934,523@ 70,444 $ 672,205
Reinvested dividends... 5,392 64,327 -- -- -- --
Shares redeemed........ (172,880) (2,029,305) (299,486) (3,349,507) (494,385) (4,600,304)
-------- ----------- -------- ----------- -------- -----------
Net increase (decrease) (130,424) $(1,532,344) (214,760) $(2,414,984) (423,941) $(3,928,099)
======== =========== ======== =========== ======== ===========
Tax Managed Equity Fund#
-----------------------------------------------------------------------
Class B
-----------------------------------------------------------------------
For the
six months ended For the For the
March 31, 2005 eleven months ended year ended
(unaudited) September 30, 2004 October 31, 2003
---------------------- ---------------------- ---------------------
Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ----------- -------- -----------
Shares sold............ 10,358 $ 117,349 75,226 $ 808,880 74,626 $ 688,358
Reinvested dividends... -- -- -- -- -- --
Shares redeemed........ (232,067)+ (2,626,624)+ (495,633)@ (5,346,758)@ (768,187) (6,967,422)
-------- ----------- -------- ----------- -------- -----------
Net increase (decrease) (221,709) $(2,509,275) (420,407) $(4,537,878) (693,561) $(6,279,064)
======== =========== ======== =========== ======== ===========
Tax Managed Equity Fund#
-----------------------------------------------------------------------
Class C(1)
-----------------------------------------------------------------------
For the
six months ended For the For the
March 31, 2005 eleven months ended year ended
(unaudited) September 30, 2004 October 31, 2003
---------------------- ---------------------- ---------------------
Shares Amount Shares Amount Shares Amount
-------- ----------- -------- ----------- -------- -----------
Shares sold............ 20,537 $ 233,767 68,670 $ 736,427 168,595 $ 1,555,227
Reinvested dividends... -- -- -- -- -- --
Shares redeemed........ (223,603) (2,542,673) (648,369) (6,961,518) (910,268) (8,270,207)
-------- ----------- -------- ----------- -------- -----------
Net increase (decrease) (203,066) $(2,308,906) (579,699) $(6,225,091) (741,673) $(6,714,980)
======== =========== ======== =========== ======== ===========
- --------
# See Note 2
+ Includes automatic conversion of 6,341 shares of Class B shares in the
amount of $70,011 to 6,121 shares of Class A shares in the amount of $70,011.
@ Includes automatic conversion of 11,528 shares of Class B shares in the
amount of $120,142 to 11,144 shares of Class A shares in the amount of
$120,142.
(1)Effective February 23, 2004, Class II shares were redesignated to Class C
shares.
69
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2005 -- (unaudited)
(continued)
Note 8. Line of Credit
The SunAmerica Family of Mutual Funds has established a $75 million
committed and $50 million uncommitted lines of credit with State Street Bank
and Trust Company, the Funds' custodian. Interest is currently payable at
the Federal Funds Rate plus 50 basis points on the committed line and State
Street Bank and Trust Company'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 other expenses on the Statement of Operations. Borrowings under
the line of credit will commence when the respective Fund's cash shortfall
exceeds $100,000. For the period ended March 31, 2005, the following Funds
had borrowings:
Weighted
Days Interest Average Debt Average
Fund Outstanding Charges Utilized Interest
- ---- ----------- -------- ------------ --------
Blue Chip Growth.............. 31 $1,231 $ 516,951 2.85%
Growth Opportunities.......... 1 81 1,136,911 2.56%
New Century................... 11 547 773,780 2.30%
Balanced Assets............... 69 4,283 801,209 2.82%
International Equity.......... 25 432 246,563 2.49%
Biotech/Health................ 9 771 1,106,751 2.83%
At March 31, 2005, there were no borrowings outstanding.
Note 9. Interfund Lending Agreement
Pursuant to exemptive relief granted by the Securities and Exchange
Commission, the Funds 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 period
ended March 31, 2005, none of the Funds participated in this program.
Note 10. Transactions with Affiliates
As disclosed in the portfolio of investments, certain Funds own common stock
issued by American International Group, Inc. ("AIG") or an affiliate
thereof. SAAMCo, the Investment Adviser, is a wholly-owned subsidiary of
AIG. During the period ended March 31, 2005, the following Funds recorded
realized gains (losses) and income on security transactions of AIG and
subsidiaries of AIG as follows:
Market Market
Value at Change in Value at
September 30, Cost of Cost of Realized Unrealized March 31,
Fund Security Income 2004 Purchases Sales Gain (Loss) Gain (Loss) 2005
- ---- ------------- ------ ------------- --------- -------- ----------- ----------- ---------
American
International
Tax Managed Equity Group, Inc. $1,028 $543,920 $-- $222,586 $(23,530) $(48,459) $249,345
Note 11. Trustees Retirement Plan
The Trustees of the SunAmerica Equity Funds have adopted the AIG SunAmerica
Disinterested Trustees' and Directors' Retirement Plan (the "Retirement
Plan") effective January 1, 1993 for the unaffiliated Trustees. The
Retirement Plan provides generally that if an unaffiliated Trustee who has
at least 10 years of consecutive service as a Disinterested Trustee of any
of the AIG SunAmerica mutual funds (an "Eligible Trustee") 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 70, or dies while a
Trustee, 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 Trustee. As of each birthday, prior to the 70th birthday, but in
no event for a period greater than 10 years, each Eligible Trustee will be
credited with an amount equal to 50% of his or her regular fees (excluding
committee fees) for services as a Disinterested Trustee of each AIG
SunAmerica mutual fund for the calendar year in which such birthday occurs.
In addition, an amount equal to 8.5% of any
70
SunAmerica Equity Funds
NOTES TO FINANCIAL STATEMENTS -- March 31, 2005 -- (unaudited)
(continued)
amounts credited under the preceding clause during prior years is added to
each Eligible Trustee's account until such Eligible Trustee reaches his or
her 70th birthday. An Eligible Trustee 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 8.50%.
The following amounts for the Retirement Plan Liabilities are included in
the Trustee fees and expenses payable line on the Statement of Assets and
Liabilities and the Amounts for the Retirement Plan Expenses are included in
the Trustees' fees and expenses line on the Statement of Operations.
Retirement Plan Retirement Plan Retirement Plan
Fund Liability Expense Payments
- ---- --------------- --------------- ---------------
As of March 31, 2005
- - -----------------------------------------------
Blue Chip Growth.............. $31,211 $ 719 $1,219
Growth Opportunities.......... 25,779 769 882
New Century................... 50,630 658 2,157
Growth and Income............. 39,436 1,188 1,238
Balanced Assets............... 87,466 1,491 3,604
International Equity.......... 17,998 565 633
Value......................... 29,281 1,255 947
Biotech/Health................ 5,165 282 126
Tax Managed Equity............ 10,609 353 295
Note 12. Investment Concentration
Some of the Portfolios may invest internationally, including in "emerging
market" countries. These securities may be denominated in currencies other
than U.S. dollars. While investing internationally may reduce your risk by
increasing the diversification of your investment, the value of your
investment may be affected by fluctuating currency values, changing local
and regional economic, political and social conditions, and greater market
volatility. In addition, foreign securities may not be as liquid as domestic
securities. These risks are primary risks of the International Equity Fund.
At March 31, 2005, the International Equity Fund had approximately 22% of
its net assets invested in equity securities of companies domiciled in Japan.
71
SunAmerica Equity Funds
APPROVAL OF ADVISORY AGREEMENTS -- March 31, 2005 -- (unaudited)
Approval of Advisory Agreements: The Board of Trustees (the "Board"), including
the Trustees that are not interested persons of SunAmerica Equity Funds (the
"Funds") (the "Disinterested Trustees"), last approved the Investment Advisory
and Management Agreement between the Funds and AIG SunAmerica Asset Management
Corp. ("SAAMCo") (the "Advisory Agreement") for a period of six months, at a
meeting held on February 22, 2005. Prior to this most recent approval, at a
meeting held on December 1, 2004, the Board, including a majority of the
Disinterested Trustees, approved the Advisory Agreement for a three-month
period.
In accordance with Section 15(c) of the Investment Company Act of 1940, as
amended (the "1940 Act"), the Board was provided with materials relating to its
consideration of the Advisory Agreement. These materials assisted the Board in
analyzing: (1) the nature, extent and quality of services to be provided by
SAAMCo; (2) the costs of services to be provided and benefits realized by
SAAMCo, including a comparison of fees with those of other advisors, as well as
SAAMCo's profitability and financial condition; (3) the terms of the Advisory
Agreement; (4) whether the Funds would benefit from economies of scale; (5)
SAAMCo's overall organization, as well as its compliance policies and history;
and (6) the investment performance of the Funds in their peer groups as
determined by Lipper ("Peer Group") and against their benchmarks and
performance of SAAMCo. Experienced counsel that is independent of SAAMCo
provided guidance to the Disinterested Trustees. These factors, as described in
more detail below, were considered by the Board.
Nature, Extent and Quality of Services
The Board, including the Disinterested Trustees, considered the nature, quality
and extent of services to be provided by SAAMCo. In making its evaluation, the
Board considered that SAAMCo acts as investment manager and adviser to the
Funds, manages the daily business affairs of the Funds, and obtains and
evaluates economic, statistical and financial information to formulate and
implement investment policies. Additionally, SAAMCo provides office space,
accounting, legal, compliance, clerical and administrative services (exclusive
of, and in addition to, overseeing of any such service provided by any others
retained by the Funds), and has authorized any of its officers and employees,
if elected, to serve as officers or trustees of the Funds without compensation.
Finally, SAAMCo is responsible for monitoring and reviewing the activities of
third-party service providers.
In making their determination regarding the nature and quality of SAAMCo's
services, the Board considered SAAMCo's responsibility to provide and supervise
the activities of all administrative and clerical personnel required to provide
effective administration of the Funds. The Board also reviewed the experience
of the portfolio managers and research staff, SAAMCo's investment style and
process, and the level and process of monitoring the managers. The Board also
reviewed the performance of the Funds, the details of which are described below.
The Board also reviewed the compliance and administrative services of SAAMCo.
The Board noted that SAAMCo provides and compensates a Chief Compliance Officer
for the Funds, and that SAAMCo currently had a compliance staff of eight
people. The Board analyzed the structure and duties of SAAMCo's accounting,
legal and compliance departments and concluded that they were adequate to meet
the needs of the Funds.
The Board concluded that it was satisfied with the nature, quality and extent
of the services provided by or to be provided by SAAMCo and that there was a
reasonable basis on which to conclude that SAAMCo would continue to provide a
high quality of investment management services.
Fees and Expenses
The Board, including the Disinterested Trustees, received and reviewed
information regarding the fees paid by the Funds to SAAMCo for investment
advisory and management services. The Board examined this information in order
to determine the reasonableness of the fees in light of the nature and quality
of SAAMCo's services and any additional benefits received by SAAMCo or its
affiliates in connection with providing such services to the Funds.
To assist in analyzing the reasonableness of the fees, the Board received
reports prepared independently by Lipper, Inc. ("Lipper"). The reports showed
comparative fee information of the Funds' Peer Groups as determined objectively
by Lipper, and rankings within the relevant Lipper categories, as well as
reports prepared by SAAMCo. In considering the reasonableness of the advisory
fee, the Board reviewed a number of expense comparisons, including: (i)
contractual management fees; (ii) actual total expenses; and (iii) actual and
allowable 12b-1 and non-12b-1 fees. The Board also took into account that the
fee arrangements included breakpoints that will adjust the fee downward as the
size of Funds increase, thereby allowing the shareholders to participate in
economies of scale. The
72
SunAmerica Equity Funds
APPROVAL OF ADVISORY AGREEMENTS -- March 31, 2005 -- (unaudited)
(continued)
Board noted that expense caps agreed to by SAAMCo and approved by the Board for
the Funds, benefited shareholders to a similar extent as if breakpoints in the
Advisory Agreement were implemented (by keeping fees down even in the absence
of economies of scale). The Board also reviewed the reports from the past year
on soft dollar commissions. These reports included information on brokers and
total commissions paid for each Fund. The reports also detailed the types of
research and services SAAMCo obtained in connection with soft dollar
commissions.
Additionally, the Board reviewed the Funds' expense ratios and analyzed the
expense reimbursements and net expense ratio caps contractually agreed upon by
SAAMCo. The Board compared the Funds' net expense ratios to those of other
funds within their respective Lipper Peer Groups. Based upon the reports
prepared by Lipper and other information provided by SAAMCo and by counsel to
the Disinterested Trustees, the Board was satisfied that the fee and expense
ratios of the Funds were acceptable given the quality of services expected to
be provided and were comparable to the fee and expense ratios of similar funds
within the same Lipper Peer Groups.
On the basis of the information considered, the Board was satisfied that the
advisory fee rates were fair in light of the usual and customary charges made
for services of the same nature and quality.
Costs of Services and Benefits Derived, as well as the Adviser's Profitability
and Financial Condition.
The Board, including the Disinterested Trustees, considered the direct and
indirect costs and benefits of providing SAMMCo's services to the Funds. The
Board reviewed confidential financial statements relating to SAAMCo's
profitability and financial condition with respect to the services it provided
the Funds, and considered how profit margins could affect SAAMCo's ability to
recruit and retain qualified investment personnel. The Board concluded that
SAAMCo had a satisfactory financial condition, and that their profitability was
not excessive as compared to standards set forth in applicable Court cases and
other available industry information.
With respect to indirect costs and benefits, the Board was informed, based on
management's judgment, that (1) any indirect costs incurred by SAAMCo in
connection with rendering investment advisory services to the Funds are
inconsequential to the analysis of the adequacy of the advisory fees, and (2)
any collateral benefits derived as a result of providing advisory services to
the Funds are de minimis and do not impact upon the reasonableness of the
advisory fee. The Board also considered the reputational value to SAAMCo from
serving as investment adviser.
The Board concluded that any benefits that SAAMCo and its affiliates could be
expected to receive with regard to providing investment advisory and other
services to the Funds were not excessive.
Terms of the Advisory Agreement
The Board, including the Disinterested Trustee, reviewed the terms of the
Advisory Agreement including the duties and responsibilities undertaken by
SAAMCo. The Board considered that SAAMCo pays all of its own expenses in
connection with the performance of its duties, as well as the salaries, fees
and expenses of the Trustees and Officers who are employees of SAAMCo. The
Board also considered the termination and liability provisions of the Advisory
Agreement.
Economies of Scale
The Board, including the Disinterested Trustees, considered whether the Funds
have benefited from economies of scale and whether there is potential for
future realization of economies with respect to the Funds. The Board concluded
that any potential economies of scale are being shared between shareholders and
SAAMCo in an appropriate manner. The Board considered that the Funds in the AIG
SunAmerica complex share common resources and as a result, an increase in the
overall size of the complex could permit each fund to incur lower expenses than
they otherwise would achieve as stand-alone entities. The Board also considered
the anticipated efficiencies in the processes of AIG SunAmerica as it adds
labor and capital to expand the scale of operations.
The Board concluded that the advisory fee structure was reasonable and that no
changes were currently necessary to further reflect economies of scale. The
Board noted that it will continue to review fees, including breakpoints and
expense caps in connection with contract renewals.
73
SunAmerica Equity Funds
APPROVAL OF ADVISORY AGREEMENTS -- March 31, 2005 -- (unaudited)
(continued)
The Overall Organization of the Adviser.
The Trustees considered the benefit to shareholders of investing in a Fund that
is part of a family of funds offering a variety of types of mutual funds and
shareholder services. The Trustees also considered SAAMCo's experience in
providing management and investment advisory services to individuals, pension,
corporate and trust accounts, including approximately 130 mutual funds (not
including the Funds), and the fact that SAAMCo currently manages, advises
and/or administers approximately $40.7 billion of assets. The Trustees also
considered SAAMCo's record of compliance with each Funds' objective, strategies
and restrictions and its positive regulatory and compliance history. The
Trustees also considered SAAMCo's relationships with its affiliates and the
resources available to them.
Compliance
The Board reviewed SAAMCo's compliance and regulatory history, and inquired
whether it had been the target of any regulatory actions or investigations. In
addition, the Board reviewed information concerning SAAMCo's compliance staff
that would be responsible for providing compliance functions on behalf of the
Funds. Finally, the Board reviewed the Code of Ethics of SAAMCo, and determined
that it contains provisions reasonably necessary to prevent fraudulent,
deceptive or manipulative acts by personnel in connection with their personal
transactions in securities held or to be acquired by the Funds.
Investment Performance
The Board regularly reviews the performance of the Funds over various periods
of time. At the Board meeting held on December 1, 2004, in connection with the
approval of the continuation of the Advisory Agreement, the Board reviewed the
short-term, one-, three- and five-year (as applicable) performance numbers of
the Funds. The Board, including the Disinterested Trustees, received and
reviewed information regarding the investment performance of the Funds compared
to their respective benchmarks, other funds in their respective Lipper Peer
Group, and to an appropriate index or combination of indices.
The Board questioned the performance of some of the Funds and reviewed
materials previously requested. The Board was presented with performance
reports independently prepared by Lipper. Based on the Lipper reports, the
Board reviewed the Funds' annualized total return for the prior fiscal quarter,
one-, three- and five-year periods ending on September 30, 2004. Based on the
investment reports prepared by senior management, the Board noted that with the
exception of the Balanced Assets Fund, Growth Opportunities Fund and
Biotech/Health Fund, each Fund ranked in the first or second quartile of its
Lipper Peer Group for the quarter ending September 30, 2004. Additionally,
based on the detailed investment reports prepared by SAAMCo, the Board noted
that the Growth Opportunities Fund and Biotech/Health Fund had failed to
improve its Lipper Peer Group rankings since the period ending June 30, 2004,
and while the Balanced Asset Fund had improved its Lipper ranking
significantly, continued improvement is still expected. The Board noted the
measures being taken by management in an effort to achieve better performance.
Finally, the Board noted that the Blue Chip Growth Fund, Growth and Income Fund
and New Century Fund had improved Lipper Peer Group rankings, were
satisfactorily performing as compared to their comparable indices and were
performing in line with their expectations.
After a full and complete discussion, the Board renewed the Advisory Agreement
with respect to the Funds for a period of three months. The Board explained its
rationale for the continuation of the Advisory Agreement and stated that while
they were encouraged by the better results over the prior three months, they
did not feel that consistent performance had been achieved. The Board stated it
was supportive of the efforts of SAAMCo in improving performance, they had
decided that it was in the best interest of the Funds, and their shareholders,
to review performance again in February.
At the next Board meeting on February 22, 2005, the Board again reviewed the
performance of the Funds. The Board reviewed materials prepared by Lipper, and
information prepared by SAAMCo based on information provided by Morningstar, an
independent provider of investment company data. The performance information
provided included the annualized returns for the prior fiscal quarter, one-,
three- and five-year periods ended December 31, 2004.
Based on its review of the information provided, the Board noted that the
Growth and Income Fund, New Century Fund, Value Fund and Blue Chip Growth Fund
continued to perform in line with the Board's expectations. Both the New
Century Fund and the Growth and Income Fund continued to outperform their
comparable indices, and remained in the first and second quartiles of its
Lipper Peer Group rankings, respectively. Additionally, the Value Fund
performed in line with the Board's expectation by outperforming its index for
the past one-, three- and five-year periods and ranking in the second quartile
of its Lipper Peer Group. Additionally, based on the
74
SunAmerica Equity Funds
APPROVAL OF ADVISORY AGREEMENTS -- March 31, 2005 -- (unaudited)
(continued)
detailed investment reports prepared by senior management, the Board noted that
the Growth Opportunities Fund and Biotech/Health Fund showed positive
short-term increases in performance, having outperformed their relative indices
for the past quarter ending December 31, 2004.
The Board being encouraged with the improvement of investment performance as
generated by SAAMCo and that management was addressing concerns where a Fund
was under performing, the Board renewed the Advisory Agreement with respect to
the Funds for a period of six months. The Board noted that they would continue
to carefully monitor the performance of the Funds and reserved the right to
take definitive action when the Advisory Agreement came up for renewal if
performance did not meet the goals as set forth by the Board. The Board also
took notice of management's enhancement of the investment group with the
addition of an analyst and that they would continue to add staff when
necessary. Finally, the Board acknowledged the efforts of management and
specifically the entire investment team, in dealing with the issues of concern
to the Board.
Conclusion
Based on their evaluation of all material factors and assisted by the advice of
independent counsel, the Board, including the Disinterested Trustees, were
satisfied that the terms of the Advisory Agreement were fair, and in the best
interest of the Funds and its shareholders, and that the advisory fee rates
provided in the Advisory Agreement are acceptable in light of the usual and
customary charges made for services of similar nature and quality. In arriving
at a decision to approve the continuation of the Advisory Agreement, the Board
did not single out any one factor or group of factors as being more important
than other factors, but considered all factors together.
75
SunAmerica Equity Funds
TRUSTEE AND OFFICER INFORMATION -- March 31, 2005 -- (unaudited)
The following table contains basic information regarding the Trustees and
Officers that oversee operations of the Funds and other investment companies
within the Fund complex.
Number of
Position Term of Portfolios in
Name, Held With Office and Fund Complex
Address and SunAmerica Length of Principal Occupations Overseen by Other Directorships
Date of Birth* Complex Time Served(4) During Past 5 Years Trustee(1) Held by Trustee(2)
- ---------------------- ---------- -------------- ----------------------------- ------------- -----------------------------
Trustees
Jeffrey S. Burum Trustee 2004-Present Founder and CEO of 36 None
DOB: February 27, 1963 National Housing
Development Corp.
Dr. Judith L. Craven Trustee 2001-Present Retired. 76 Director, A.G. Belo
DOB: October 6, 1945 Corporation (1992 to
present); Director, Sysco
Corporation (1996 to
present); Director, Luby's,
Inc. (1998 to present):
Director, University of Texas
Board of Regents
(2001-Present).
William F. Devin Trustee 2001-Present Retired. 76 Member of the Board of
DOB: December 30, 1938 Governors, Boston Stock
Exchange (1985-Present).
Samuel M. Eisenstat Chairman 1986-Present Attorney, solo practitioner. 46 Director, North European Oil
DOB: March 7, 1940 of the Royalty Trust.
Board
Stephen J. Gutman Trustee 1986-Present Partner and Member of 46 None
DOB: May 10, 1943 Managing Directors, Beau
Brummel-Soho LLC
(Licensing of menswear
specialty retailing and other
activities) (June 1988 to
present)
Peter A. Harbeck(3) Trustee 1995-Present President, CEO and Director, 85 None
DOB: January 23, 1954 SAAMCo. (August 1995 to
present); Director, AIG
SunAmerica Capital
Services, Inc. ("SACS")
(August 1993 to present)
William J. Shea(5) Trustee 2004-Present President and CEO, Conseco, 46 None
DOB: February 9, 1948 Inc. (Financial Services)
(2001-2004); Chairman of
the Board of Centennial
Technologies, Inc. (1998 to
2001); Vice Chairman, Bank
Boston Corp. (1993-1998)
76
SunAmerica Equity Funds
TRUSTEE AND OFFICER INFORMATION -- March 31, 2005 -- (unaudited)
(continued)
Number of
Position Term of Portfolios in
Name, Held With Office and Fund Complex
Address and SunAmerica Length of Principal Occupations Overseen by Other Directorships
Date of Birth* Complex Time Served(4) During Past 5 Years Trustee(1) Held by Trustee(2)
- ------------------ ---------- -------------- ----------------------------- ------------- -------------------
Officers
Vincent M. Marra President 2004-Present Senior Vice President and N/A N/A
DOB: May 28, 1950 Chief Operating Officer,
SAAMCo (February 2003 to
Present); Chief
Administrative Officer and
Chief Financial Officer,
Carret & Co., LLC (June
2002 to February 2003);
President, Bowne Digital
Solutions (1999 to May
2002)
Donna M. Handel Treasurer 2002-Present Assistant Treasurer (1993 to N/A N/A
DOB: June 25, 1966 2002); Senior Vice President,
SAAMCo (December 2004
to Present); Vice President,
SAAMCo (1997 to
December 2004)
- --------
* The business address for each Trustee is the Harborside 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 (9 funds), SunAmerica Income Funds (6 funds),
SunAmerica Focused Series, Inc. (15 portfolios), Anchor Series Trust (9
portfolios), SunAmerica Senior Floating Rate Fund, Inc. (1 fund),
SunAmerica Series Trust (32 portfolios), VALIC Company I (24 portfolios),
VALIC Company II (15 funds), Seasons Series Trust (24 portfolios) and AIG
Series Trust (4 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 Trustee, as defined within the Investment Company Act of 1940,
because he is an officer and a director of the advisor and a director of
the principal underwriter of, the Trust.
(4) Trustees serve until their successors are duly elected and qualified,
subject to the Trustee's retirement plan as discussed in Note 11 of the
financial statements.
(5) Effective November 30, 2004, William J. Shea began serving as a Director.
Additional information concerning the Trustees and Officers is contained in the
Statement of Additional Information and is available without charge by calling
(800) 858-8850.
77
[LOGO] AIG Sun America
Mutual Funds
Harborside Financial Center
3200 Plaza 5
Jersey City, NJ 07311-4992
Directors/Trustees Investment Adviser DISCLOSURE OF QUARTERLY
Samuel M. Eisenstat AIG SunAmerica Asset PORTFOLIO HOLDINGS
Peter A. Harbeck Management Corp. The Trust is required to
Dr. Judith L. Craven Harborside Financial file its com-plete
William F. Devin Center schedule of portfolio
Stephen J. Gutman 3200 Plaza 5 holdings with the U.S.
Jeffrey S. Burum Jersey City, NJ Securities and Exchange
William J. Shea 07311-4992 Commission for its first
and third fiscal quarters
Officers Distributor on Form N-Q for fiscal
Vincent M. Marra, AIG SunAmerica Capital quar-ters ending after
President Services, Inc. July 9, 2004. Once filed,
Donna M. Handel, Harborside Financial the Trust's Form N-Q will
Treasurer Center be available without
Brian P. Clifford, Vice 3200 Plaza 5 charge on the U.S.
President Jersey City, NJ Securities and Exchange
Francis Gannon, Vice 07311-4992 Commission's website at
President www.sec.gov. You can also
J. Steven Neamtz, Vice Shareholder Servicing obtain copies of Form N-Q
President Agent by (i) visit-ing the U.S.
Timothy Pette, Vice AIG SunAmerica Fund Securities and Exchange
President Services, Inc. Commission's Public
Cynthia Gibbons, Vice Harborside Financial Reference Room in
President and Chief Center Washington, DC
Compliance Officer 3200 Plaza 5 (information on the
Thomas Lynch, Secretary Jersey City, NJ operation of the Public
Gregory R. Kingston, 07311-4992 Reference Room may be
Vice President and obtained by calling
Assistant Treasurer Custodian and Transfer 1-800-SEC-0330); (ii)
Corey Issing, Assistant Agent sending your request and
Secretary State Street Bank and a duplicating fee to the
Trust Company U.S. Securities and
P.O. Box 419572 Exchange Commis-sion's
Kansas City, MO Public Reference Room,
64141-6572 Wash-ington, DC
20549-0102 or (iii)
VOTING PROXIES ON TRUST sending your request
PORTFOLIO SECURITIES electronically to
A description of the publicinfo.sec.gov.
policies and proce-dures
that the Trust uses to This report is submitted
determine how to vote solely for the general
proxies relating to information of
secu-rities held in the shareholders of the Fund.
Fund's portfolio which is Distribution of this
available in the Trust's report to persons other
State-ment of Additional than shareholders of the
Information, may be Fund is authorized only
obtained without charge in connection with a
upon re-quest, by calling currently effective
(800) 858-8850. This prospectus, setting forth
information is also details of the Fund,
available from the EDGAR which must precede or
database on the U.S. accompany this report.
Secu-rities and Exchange
Commission's website at The accompanying report
http://www.sec.gov. has not been audited by
independent accountants
PROXY VOTING RECORD ON and accordingly no
SUNAMERICA EQUITY FUNDS opinion has been
Information regarding how expressed thereon.
SunAmerica Equity Funds
voted prox-ies relating
to securities held in the
SunAmerica Equity Funds
during the twelve month
period ended June 30,
2004 is available without
charge, upon request, by
calling (800)858-8850 or
on the U.S. Securities
and Exchange Commission's
website at
http://www.sec.gov.
78
[LOGO]
AIG Sun America
Mutual Funds
Distributed by:
AIG SunAmerica Capital Services, Inc.
Investors should carefully consider the investment objectives, risks, charges
and expenses of any mutual fund distributed by AIG SunAmerica Capital Services,
Inc. before investing. This and other important information is contained in the
prospectus, which can be obtained from your financial adviser or from the
SunAmerica Sales Desk at 800-858-8850, ext. 6003. Read the prospectus carefully
before you invest.
www.sunamericafunds.com
EQSAN-3/05
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. 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
of 1940 (17 CFR 270.30a-3(d))) that occurred during the second fiscal
quarter of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal contro1 over financial reporting. However,
internal controls with respect to monitoring proof of claim filings
have been enhanced.
Item 12. Exhibits.
(a) (1) Not applicable.
(2) Certification pursuant to Rule 30a-2(a) under the Investment
Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit
99.CERT.
(3) Not applicable.
(b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of
2002 attached hereto as Exhibit 99.906.CERT.
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 Equity Funds
By: /s/ Vincent M. Marra
-------------------
Vincent M. Marra
President
Date: June 9, 2005
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/ Vincent M. Marra
-------------------
Vincent M. Marra
President
Date: June 9, 2005
By: /s/ Donna M. Handel
-------------------
Donna M. Handel
Treasurer
Date: June 9, 2005